The West Bengal Authority of Advance Ruling (AAR) ruled that no GST payable on the supply of Services to Howrah Municipal Corporation for lifting, removing of garbage accumulated from vats, dumping yards, containers.
The applicant, Vinayak Singh is stated to be engaged in providing conservancy/solid waste management services as well as garbage collection and dumping services to the Conservancy Department of the Howrah Municipal Corporation (HMC).
The applicant submits that the recipient, being a municipal corporation, is a local authority. The applicant has furnished a copy of the work order issued in support of his contention that he is engaged in supplying pure services and such supply of pure services, therefore, gets covered under entry serial number 3 of the Exemption Notification.
The applicant has sought the advance ruling on whether the above supply is exempted in terms of Sl No. 3 or 3A of Notification No. 12/2017 – Central Tax (Rate) dated 28/06/2017 (corresponding West Bengal State Notification No. 1136 – F.T. dated 28/06/2017), as amended from time to time (hereinafter collectively referred to as Exemption Notification), and if so, whether the notifications regarding TDS are applicable in his case.
The coram of Brajesh Kumar Singh and Joyjit Banik held that applicant‟s supply to the Howrah Municipal Corporation for lifting and removing of daily garbage etc. accumulated from the vats, dumping yards, containers, and other places on the roads, lanes, and bye-lanes of HMC area is exempt from payment of tax vide entry serial number 3 of the Notification No. 12/2017 – Central Tax (Rate) dated 28/06/2017 (corresponding West Bengal State Notification No. 1136 – FT dated 28/06/2017), as amended from time to time.
“As the applicant is making an exempt supply, the provisions of section 51 in respect of tax deduction at source do not apply in the instant case,” the AAR added.
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