The Tamil Nadu Authority of Advance Ruling (AAR) ruled that the Solid Waste Management by Revamping of Existing Dumped Garbage in Compost Yards by Bio-Mining process is exempted from Goods and Service Tax (GST).
The Applicant, M/s. Zigma Global Environ Solutions Private Limited, are the service providers of Municipal Solid Waste (MSW) Management solutions and as an MSW Management company, they offer solutions involving segregation, treatment, recycling of MSW and thus clearing MSW landfills.
The services provided by them are mandated under the Solid Waste Management Rules 2016 and Central Pollution Control Board Guidelines for Disposal of Legacy Waste, February 2019.
The applicant sought advance ruling on the issue of classification of the services in relation to Solid waste management by Revamping of existing dumped Garbage in compost yards by Biomining process provided by the applicant to M/s. Erode City Municipal Corporation, Erode.
The Authority consisting of Kurinjee Selvaan and Senthilvelavan ruled that the activities undertaken by the applicant such as consolidation of waste, temporary storage of hazardous and non-hazardous waste; treating and disposing of the waste by processing in a facility that meets legal standards, are all covered under the group 99943.
The AAR further clarified that the ultimate goal of the activity is reclamation of land clear of the dump and the activity undertaken by the applicant is the removal of the waste following the norms set under SWM Rules 2016. Therefore, the activity undertaken by the applicant is covered under SAC 9994 and more appropriately under Group 99943.
The other issue raised for the consideration was whether services provided by the applicant are exempted under Sl. No. 3 of notifications No. 12/2017 dated July 28, 2017 as amended.
The AAR ruled that the service provided by the applicant is exempted under Sl.No. 3 of Notification No. 12/2017 dated June 28, 2017, as amended.
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