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2022 (8) TMI 922 - AAR - GSTClassification of services - Maintaining the micro-compost centres and processing the wet waste provided by the Greater Chennai Corporation at designated locations in Center Region Zones 7, 9 & 10 in Chennai - eligibility of exemption under Serial No 3 of Notification No 12/2017-Central Tax (Rate)., dated 28/07/2017, as amended from time to time - HELD THAT:- The applicant has entered into an agreement with GCC and the work order S.W.M.C.No. A7/0108A/2020 dated 23.07.2020 is issued by GCC to the applicant for “Maintaining the Micro Compost Centres and Processing the Wet Waste” provided by Greater Chennai Corporation at designated locations in Center Region Zones 7, 9 & 10 at the quoted processing fees of Rs. 1690/- PMT and for a total contract value of Rs. 9,09,36,027.50/- for a period of three years. SAC 9994 covers 'Sewage and waste collection, treatment and disposal and other environmental protection services' - The applicant has stated that as per their understanding, the activity is classified under Heading SAC 99942. The activity undertaken by the applicant is waste treatment/processing of wet waste provided by GCC and maintenance of the designated Micro compost centers of GCC, by employing their own personnel. The activity while covered under the Heading 9994, will more appropriately fall under the Group 99943- waste treatment and disposal services rather than group 99942-Waste collection Services - the classification of the activity of Maintaining Micro Compost Centers and processing the wet waste provided by GCC, is classifiable under Heading 9994 and more specifically under group 99943- 'Waste Treatment and Disposal services'. Applicability of serial No.3 of Notification No.12/2017-Central Tax (Rate)., dated 28/07/2017 - HELD THAT:- The work order received from GCC to the applicant for maintenance of the Micro Compost Centres is “Pure services' rendered to a GCC, a local authority and the said service are activities entrusted to a municipality under Article 243W of the Constitution. Hence, the applicant is eligible for exemption from GST vide SI.No.3 of Notification 12/2017-CT. (Rate) dated 28.06.2017(as amended).
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