The West Bengal Authority for Advance Ruling ( AAR ) has held that service provided to the State Government for the collection and disposal of bio-medical waste is exempted from GST.
The applicant, SNG Envirosolutions Pvt Ltd has entered into an agreement with the Department of Health Services, Department of Health & Family Welfare, Government of West Bengal for the collection and disposal of bio-medical waste from various clinical establishments. In order to fulfill its obligations under the aforesaid agreement, the applicant entered into an agreement with Medicare Environmental Management Private Limited (Medicare) where Medicare was appointed as a sub-contractor for the collection and disposal of bio-medical waste.
The applicant contends before the authority that the services don‘t involve any supply of goods and since the services is provided to State Government, it shall be covered under entry serial number 3 of Notification No. 12/2017-Central Tax (Rate) thereby shall be exempted from payment of tax under the GST Act.
The applicant submitted that any type of pure services (excluding works contract service or other composite supplies involving supply of any goods) provided to the Central Government, State Government or Union territory or local authority shall be exempted by entry serial number 3 of Notification No. 12/2017-Central Tax (Rate) irrespective of the fact that such services are provided by way of any activity in relation to any function entrusted to a Panchayat under Article 243G of the Constitution or in relation to any function entrusted to a Municipality under Article 243W of the Constitution.
The authority observed that the services provided by the applicant for the collection and disposal of bio-medical waste from various clinical establishments are found to be a matter as listed in the Eleventh and/or Twelfth Schedule in relation to functions entrusted to a Panchayat under article 243G and/or to a municipality under article 243W of the Constitution of India.
The Coram of Mr Brajesh Kumar Singh, Joint Commissioner, and Mr Joyjit Banik, Senior Joint Commissioner, has held that “supplies provided by the applicant to State Government for collection and disposal of bio-medical waste from various clinical establishments shall get covered under entry serial number 3 of Notification No. 12/2017-Central Tax (Rate) and Notification No. 12/2017 State Tax (Rate)”. Hence the applicant is exempted from payment of tax under the GST Act.
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