Service of Transporting Segregated Waste to Dumpsites for Municipal Corporation is "Pure Service", Exempt from GST: AAR [Read Order]

In a significant ruling, the West Bengal Authority for Advance Ruling (WBAAR) has clarified that transporting segregated municipal waste to designated dumpsites for the Howrah Municipal Corporation qualifies as a “pure service” under GST law.

The applicant, Hari Narayan Singh, had sought clarity on whether his conservancy‑related services carrying waste from secondary transfer points to dumpsites using fuel‑operated vehicles qualified for exemption under entries 3, 3A, or 4 of the notification.

The applicant submitted that his work was a “pure service” directly linked to municipal functions under Article 243W of the Constitution, specifically public health and sanitation. He also stated that no goods were supplied to HMC, and consideration was based solely on the quantity of waste transported. He also relied on earlier rulings in Indrajit Singh, Vinayak Singh, and Banchu Das, which had granted similar exemptions.

On the other hand The Revenue concurred, noting that the activity involved only transportation and handling of waste, without any transfer of property in goods. It confirmed that the services fell squarely within the exemption under Sl. No. 3.

It has been stated that the services rendered by the applicant are directly connected with the municipal function of solid waste management, which falls within the Twelfth Schedule read with Article 243W of the Constitution. The recipient of the service, namely the Howrah Municipal Corporation, is a local authority under the GST law.

After concerning the submissions, the authority observed that the applicant is a registered proprietorship firm engaged in conservancy-related services. The applicant is stated to have been awarded a contract related to carrying segregated waste from the secondary transfer point to the dumpsite in a segregated manner with the help of their own fuel-operated vehicle for a certain zone of a particular ward of Howrah Municipal Corporation.

So Entry 4 did not apply, as Singh was not a governmental authority, and also Entry 3A was irrelevant, since no goods were supplied.

The authority noted that Entry 3 applied, as the services were pure, provided to a local authority, and directly related to municipal functions under the Twelfth Schedule, and highlighted that the applicant’s contract required him to maintain vehicles, upload daily activity logs in the “Purobikkha” app, and receive payment based on the weight of garbage removed—further confirming the absence of any goods component.

The bench, Shafeeq S, and Jyadip Kmar Chakrabarti ( Members of West Bengal Authority for Advance Ruling ) ruled that: “The referred activity will qualify for serial no. 3 of Notification No. 12/2017 – Central Tax (Rate) dated 28.06.2017, as amended. As such, it is exempted from tax.”

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