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2021 (11) TMI 150 - AAR - GSTExemption from GST - supply made to HMC - conservancy/solid waste management services as well as garbage collection and dumping services to the Conservancy Department - Eligibility under SI No 3 or 3A of the Exemption Notification - pure service or a composite supply - functions entrusted to a municipality under article 243W of the Constitution of India or not - HELD THAT:- In the instant case, the work order issued to the applicant describes the nature of the work as lifting and removing of daily garbage etc. accumulated from the vats, dumping yards, containers and other places on the roads, lanes and bye-lanes of HMC area - the term ‘pure services’ has not been defined under the Act. However, a bare reading of the description of services as specified in entry serial number 3 of the Exemption Notification denotes supply of services which does not involve any supply of goods can be regarded as pure services. It appears that in the instant case, the supplies do not involve any supply of goods. The applicant receives consideration only in respect of the quantity of the garbage lifted and removed. So, it may be inferred that the applicant's supply to HMC, which is a local authority as defined under section 2(69) of the GST Act, is a pure service. Whether the said services are in relation to any functions entrusted to a municipality under article 243W of the Constitution of India? - HELD THAT:- It transpires from above that the functions entrusted to a municipality as listed in the Twelfth Schedule include the functions like sanitation conservancy and solid waste management. The applicant's services to HMC is exempt under entry serial number 3 of the Exemption Notification. Section 51(1) of the GST Act provides that the Government may mandate inter alia a local authority to deduct TDS while making payment to a supplier of taxable goods or services or both. As the applicant is making an exempt supply to the HMC, the provisions of section 51 and, for that matter, the TDS Notifications do not apply to his supply.
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