The Advance Ruling Authority (AAR), West Bengal has held that the waste management service provided to the municipality is exempted from the Goods and Services Tax ( GST ) and therefore, TDS.
The applicant, Time Tech Waste Solutions Private Limited sought for a clarification regarding whether the TDS notifications under GST is applicable to supply of waste management service to a municipality and whether the applicant needs to be registered even if he makes exempted supplies only.
The authority noted that the supply of unbranded organic manure, unless packed in containers, is classifiable under HSN 3101.
“Municipal waste is classifiable under HSN 3825. Supplies of both of them are exempt under Sl Nos. 108 and 110 of the Exemption Notifications (Goods), respectively. lf the Applicant’s turnover consists entirely of exempt supplies, he is not liable to registration in terms of section 23(1)(a) of the GST Act,” it said.
It was noted that under the agreement, the Applicant is made responsible for collection, segregation, storing, transport and disposal of municipal solid waste from the municipal area of the BMC. They will organize a house-to-house collection of municipal solid waste, collect waste from slums, hotels, slaughterhouses etc. They will segregate the nonbio-degradable and inert waste and dump it at the Landfill within the Project premise.
“The Applicant may build a suitable Processing and Composting Plant. The Applicant shall bear the expenditure for maintenance of the collection equipment and pay rental on the equipment taken on lease from the BMC. The consideration to be paid measures the work done in terms of the quantity of the garbage lifted and removed. Based on the above document, it may, therefore, be concluded that the Applicant’s supply to BMC is pure service,” it said.
