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2022 (11) TMI 140 - AAR - GSTExemption from GST - pure services or not - Composite supply or not - providing conservancy/solid waste management services - HELD THAT:- In the instant case, the work order issued by the Conservancy Department of Howrah Municipal Corporation describes the nature of the work for annual operation and maintenance of capacity portable compactor and hook loader. Further, from the copies of invoices as furnished by the authorized representative in course of personal hearing, it is noticed that the applicant has issued invoices describing particulars as ‘annual operation and maintenance of Compactor Machine for lifting and removal of garbage’. The term ‘pure services’ has not been defined under the Act. However, a bare reading of the description of services as specified in 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. In the present case, the work order has been issued for operation and maintenance of compactor and hook loader. Annual maintenance of compactor and hook loader involves supply of goods like spare parts. The instant supply cannot be held to be pure services. The instant supply for annual operation and maintenance of compactor and hook loader is a composite supply of goods and services and such supply can qualify for exemption vide serial 3A of the Exemption Notification only when the value of goods involved in such composite supply does not exceed 25% of the value of supply and the same is provided to the Central Government, State Government or Union territory or local authority 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 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 may be exempted under serial number 3A of the Exemption Notification if the value of goods involved in such composite supply does not exceed 25% of the value of supply.
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