The Andhra Pradesh Authority for Advance Ruling (AAR) has held that ‘Solid Waste Management’ service to Governmental authority and Government Entity not exempted.
The applicant, M/s Zigma Global Environ Solutions Pvt. Ltd. (ZGES) is the service provider that offers solutions involving segregation, treatment, recycling of Municipal Solid Waste (MSW) and thus clearing MSW landfills. The applicant was successful in obtaining the ‘Bid’ called for by the Superintending Engineer, for “Processing and disposal of the legacy municipal solid waste near Kakulamanu tippa, Tirumala through Bioremediation and Bio-mining as is where is basis’.
The applicant submitted that the services to be provided by them fall under SAC code No.9994 “sewage and waste collection, treatment and disposal and other environmental protection services” and in particular Group 99943-Waste treatment and disposal services” as per Annexure to Notification No.11/2017 Central Tax. The applicant further submittedthat the services provided by them to the municipality under the 12th schedule to Article 243W, hence exempted under SI.No.3 of Notification No.12/2017 CentralTax.
The Authority observed the Sl. No. 3 (i.e., pure services) and 3A (i.e., Composite supply of goods and services in which the value of supply of goods constitutes not more than 25% of the value of the said composite supply), of Notification No.12/2017 as amended further by Notification No. 16/2021 – Central Tax (Rate) the words “or a Governmental authority or a Government Entity” have been omitted to exclude such services supplied to a Governmental Authority or Government Entity. Thus, services mentioned in Serial No. 3 and 3A provided to Governmental authority and Government Entity shall no longer be exempt from January 1, 2022, and shall attract GST as applicable under Services Rate Notification.
The Coram of Mr. D. Ramesh, Member (State Tax) and Mr. RV Pradhamesh Bhanu, Member (Central Tax) has held that ‘Solid Waste Management” services to be provided by the applicant fall under SAC code No.9994 “sewage and waste collection, treatment and disposal and other environmental protection services” and in particular Group 99943-Waste treatment and disposal services” as per Annexure to Notification No.11/2017 Central Tax (Rate) and not exempted under SI.No.3 of Notification No.12/2017 – Central Tax (Rate).
Adv. Mr. B. Venkateswaran appeared on behalf of the applicant.
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