The West Bengal Authority for Advance Ruling ( AAR ) has recently, in an application filed before it held that no GST will levied on conservancy /solid waste management services if the value of supply doesn’t exceed 25 percentage
The applicant IS engaged in providing conservancy/solid waste management services to the Conservancy Department of the Howrah Municipal Corporation
The applicant sought the advance ruling on the issue ofwhether conservancy/solid waste management services provided by us are exempt from GST.
Before the authority applicant submit that “services provided by them is a “Pure service” which is covered under serial number 3 of the Notification No. 12/2017 Central Tax (Rate).As amended, which exempts “pure service provided to the Central Government, State Government or Union Territory or Local Authority or a Government Authority or a Governmental Entity by way of an activity in relation to any function entrusted to a Panchayat under Article 243G of the Constitution or in relation to any function entrusted to a Municipality under article 243W of the Constitution.”
After the submission of the applicant the Authority found that work order has been issued for operation and maintenance of compactor and hook loader. Therefore annual maintenance of compactor and hook loader involves supply of goods like spare parts. This is unable to hold the instant supply to be pure services.
Further supply for annual operation and maintenance of compactor and hook loader is a composite supply of goods and services and such supply can qualify for exemption vide serial 3A of the Exemption Notification only when the value of goods involved in such composite supply does not exceed 25%.
The authority consist of member Brajesh Kumar Singh, and Joyjit Banik Raghu ruled that supply to the Howrah Municipal Corporation for operation and maintenance of capacity portable compactor and hook loader is eligible for exemption from payment of tax, if the value of goods involved in such composite supply does not exceed 25% of the value of supply.
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