TMI Blog2019 (3) TMI 1121X X X X Extracts X X X X X X X X Extracts X X X X ..... ources and allowing them to regenerate or sustainable consumption of natural resources i.e. meeting the needs of present generation without compromising the needs of the future generations (Brundtland Report)). It is a well known fact that flush toilets waste large quantities of water and that recycling of human excreta would reduces pollution of the environment. Therefore the applicant s activities are covered by the activity specified under Para 2(r)(iv) of the Notification relating to preservation of environment. Applicant is also engaged precisely in activities relating to creation of awareness of sanitation which is an essential ingredient of preventive healthcare. Therefore the applicant s activities are also covered by the activities specified under Para 2(r)(B) of the Notification, though the applicant himself has not raised any argument in this regard. Thus, these activities can be considered as charitable activities and within the scope of Charitable activities as defined in 2 (r) of the exemption Notification No.12/2017-Central Tax (Rate) dated 28/06/2017 of the GST Act. - GST-ARA-70/2018-19/B-163 - - - Dated:- 19-12-2018 - SHRI B. TIMOTHY, AND SHRI B.V. B ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... F) IS empanelled as Key Resource Centers (KRC) under Ministry of Drinking Water and sanitation to conduct training workshops facilitate knowledge sharing and learning, etc., Under the Swachh Bharat Mission (Gramin) across the country. ECOSAN SERVICE FOUDNATION (ESF) is a state government recognized Key resource Centre (KRC). B) Applicant is registered as per Provisions of GST Law. C) The Applicant seeks the Ruling of the Advance ruling Authority on the following transactions. 1) The Ecosan Service Foundation (ESF) is engaged in providing services relating to Sanitation. Since its inceptions. Following are the amounts received towards Grants / Donations from Various companies, details are as under. Year Donor Amount 2017-18 Charities Aid foundation 2,25,600/- 2017-18 The HSBC Ltd. 22,58,300/- 2017-18 Charities Aid Foundation 35,000/- 2018-19 Charities Aid Foundation 16,62,500/- 2018- ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... re of animals and prevention of pollution etc. In the Constitution of India, it is clearly stated that it is the duty of the state to protect and improve the environment and to safeguard the forests and wildlife of the country . It imposes a duty on every citizen to protect and improve the natural environment including forests, lakes, rivers, and wildlife . Reference to the environment has also been made in the Directive Principles of State Policy as well as the Fundamental Rights. The Department of Environment was established in India in 1980 to ensure a healthy environment for the country. This later became the ministry of Environment and Forests in 1985. The constitutional provisions are backed by a number of laws - acts, rules, and notifications. The EPA (Environment Protection Act), 1986 came into force soon after the Bhopal Gas Tragedy and is considered an umbrella legislation as it fills many gaps in the existing laws. Thereafter a large number of laws came into existence as the problems began arising, for example, Handling and Management of Hazardous Waste Rules in 1989. The Ministry of Environment, Forest and Climate Change (MoEFCC) is the nodal agency in the ad ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l. Around 450m people relieve themselves in playgrounds, behind trees, by roadsides, and on railway tracks and river banks. In cities 157m urban dwellers, more than the population of Russia, lack decent toilet facilities. Much of the solid waste is emptied into rivers, lakes and ponds untreated. The World Bank links one in ten deaths in India to poor sanitation. From contaminated groundwater children pick up chronic infections that impair their bodies ability to absorb nutrients. Almost 44m children under five, says the bank, have stunted growth, and every year over 300,000 die from diarrheal diseases. What can India do to change this grim reality? In 2014 the government pledged to end open defecation by 2019. That year marks the 150th anniversary of the birth of Mahatma Gandhi, who considered sanitation to be sacred and more important than political freedom . Authorities have set aside $29bn for the nationwide progaramme, which claims to have constructed 49m household toilets to date, with another 61m Stilt to go. Families get 12,000 rupees ($187) to build a toilet. The initiative is part of a long line of programs that go back to the country s first five-year plan of the earl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... little to promote their use. With a population of over 1.3 billion, India is soon set to dislodge China as the most populous country of the world. While India has one of the fastest growing populations in the world today, it s far behind most others when it comes to preserving the environment and the ecology. Today, our country is riddled with a number of environmental concerns which have only aggravated in the last few decades. It is high time we tackled these issues head on as turning a blind eye is no solution. Even as India races ahead to join the league of top economies internationally, it must stick to a growth path that is environmentally sustainable. Neglecting the environment can create havoc and the damage done may become irreparable. So we must wake up and smell the coffee before it s too late. II) ENVIRONMENTAL CONCERNS: Following are some of the major environmental concerns India is grappling with today: Air Pollution - Air pollution is one of the worst scourges to have affected India. According to a report from the International Energy Agency (IEA), by 2040 there are likely to be about 9 lakh premature deaths in the country due to the drastic rise ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rt by The Economist, about 130 million households (and 600 million population) in the country lack of toilets. Over 72 percent of India s rural population defecate in the open. Ancient practices such as manual scavenging are still in vogue in the country. Lack of safe garbage disposal systems in the country make India one of the most unhygienic countries in the world. The rural regions of the country are worse off than urban tracts in this regard. This is one of the areas where the country s government and people need to work hard and improve the prevailing conditions. Loss of Biodiversity According to the International Union for Conservation of Natureis Red Data Book, some 47 species of plants and animals in India are listed as critically endangered. Loss of ecology and natural habitats have left many indigenous species, including important ones such as the Siberian crane, Himalayan wolf and Kashmir Stag in grave danger of going extinct. Rapid urbanization, poaching and indiscriminate hunting for leather, fur etc. have rendered these animals critically endangered and the flora or herbal treasure of India in near-extinction conditions. Many of the plants commonly harvested ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of cities and towns in India can easily fill up eight swimming pools every day, and that too of the size that is used in the Summer Olympics! In fact, the same amount of faces can fill up 16 jumbo jets a day. Migration The report has mentioned that, at present, India is seeing the biggest migration from rural to urban areas in the recent history. It has also stated that the Swachh Bharat Campaign, started by Narendra Modi, emphasizes the fact that it is only when the cities and towns in India grow in an equitable and sustainable manner will it help the country remain wealthy and healthy in the long term. As per the report, at present there are around 381 million people living in the urban areas of India that are expanding fast. This is almost equivalent to the amount of people living in West Europe. Growth in numbers In spite of how government is treating the entire issue of sanitation, the number of people living in urban areas sans sanitation is only going up. In fact, since 2000 this number has increased by 26 million. It is estimated that approximately 100 million people have no recourse but relieve themselves in the open. Such people normally use roadsides, p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... omestic sewage. Water becomes unusable for most human needs, and water bodies become an eyesore, a source of pest nuisance and breeding sites for disease carriers, instead of being recognized as ecologically indispensable features in the cycle of water. While nature s water cycle gets polluted, the cycle of elements through soils gets disrupted (shifting nutrients from soil to water bodies), and the soils from where nutrients are being harvested in the form of food crops get impoverished. - See below under Ecosan 5 4) Problems of handling hygiene Flushing is far from perfectly hygienic: Slow motion films show that huge volumes of fine spray (water with stool particles) get whirled up into the air upon flushing toilets. Working with underground sewer systems has its dangers. Sewer systems and sewage treatment plants require handling of raw or partially treated sewage by humans, exposing them to disease. In order to eliminate the risk of contamination by sewage-borne pathogens, immense protection and technological measures are required. Where protection measures are not provided, a labor force is exposed to pathogens. See below under Ecosan 4 5) Exorbitant costs - The s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l for every living cell, microbial, vegetal, animan and human reserves are located in very few countries (Morocco, China, US, Middle East) and estimated to be depleted within 50 to 120 years. Mergers and takeovers amongst multinational mining corporates reflect this knowledge. It is obvious that global food security requires a more reliable resource, such as the excreta of mammals, including man. The re-use of human excreta as fertilizers and soil conditioners obviously can mean cost savings and benefits for farmers. In practice, it has been observed in Tamil Nadu and Karnataka that as soon as farmers realize the benefits of ecosan products, the concept is readily welcomed. 3) Saving water resources Besides the water required for anal cleansing, UDDT use requires no water. Indeed, the less water that enters the composting chamber, the easier it is kept smell-free. The average water volume saved by not flushing stools may be in the range of at least seven liters, and for not flushing urine, in the range of two liters saved. If toilet use is complete, the per capita use of water will be in the range or 20-30 liters per day. 4) Improved handling hygiene - In UDDTs ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... account. C. Sanitation factors independent of the flush/ecosan issues Benefits of privacy, dignity, security - in particular for women and girls are the same for all houseold toilets, as are benefits of convenience and comfort. These are independent of the type of toilet-flush, dry, composting, etc. Yet these benefits seem to be the most important for the promotion of sanitation. With the sanitation scenario being framed as an issue for only the lowest end of the socio-economic society strata, there are deficits in thoughtful design and in perfecting execution and finishing. This problem is shared by all efforts in sanitation. D) THE ROLE PLAYED BY OUR INSTITUTION ECOSAN SERVICES FOUNDATION: The Work which has been undertaken by our Institution is essentially in the field of Ecological Sanitation. The area activities inter-alia include; - Sanitation Capacity Building through training, piloting and demonstration, awareness raising, R D and coaching new enterprises. - Open dissemination of knowledge in sustainable sanitation and water management among individuals and institutions. - Providing sustainable solutions at community level. - S ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (IWWA) international conference in Mumbai. 2007: 39 th IWWA Annual Convention Ecosan Services Foundation participated in the 39th IWWA Annual Convention on Emerging opportunities in Management of Water Supply and Sanitation Projects in Mumbai in? 2007 organized by Indian Water Works Association (IWWA). 2010: Water Conservation Seminar Ecosan Services Foundation organized a two day state level seminar on Water Conservation in Adarsh College, Badlapur in 2010. 2005: 9 th IWWA International Conference Ecosan Services Foundation participated in the 9th IWWA International Conference 2005 in Mumbai. 2011: National Workshop by Eco San Ecosan Services Foundation organized a two day national level workshop on Ecological Sanitation at the Sardar Vallabhai National Institute of Technology in Surat in 2011. 2011: International Water Conference Ecosan Services Foundation attended the International Water Conference organized by NEERI in Nagpur in 2011. 2015: Certificate of Validation by Charities Aid Foundation (CAF) Ecosan Services Foundation was assessed and validated by Charities Aid Foundation (CAF) i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... arly, describes the services by an entity registered u/s 12AA of IT. Act, by way of charitable activities. In the present case, the taxpayer is not registered as an entity u/s 12AA of Income Tax Act, 1961 and the second part is that these services be provided by way of Charitable Activities as mentioned in earlier para. As per this definition Sanitation Services does not form part of Charitable purposes and as claimed by taxpayer, it also not amount to preservation of environment because preservation of environment clearly defined in the above definition i.e. for the watersheds, forests wildlife, and hence as per taxpayers claim, by providing Services of Sanitation is not preservation of environment. In view of this, this office feels that Sanitation Services provided by this charitable company is not exempted under GST law, it would be taxed as per the schedule entry of GST Act. If further information is required, we may be allowed some more time by your honour. 04. HEARING The Preliminary hearing in the matter was held on 12.09.2018, Sh. B. G. Joglekar Consultant appeared and requested for admission of application as per detailed contentions made in their AR ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e of toilets development under 1 year programme(total no. of 02 schools) 2018-19 Worlds Toilets Organisation Singapore WTO 13,62,636/- To host world toilet summit (WTS in November 18th and 19th 2018 in Mumbai, India) In order to render services amounts are received from various companies and persons as grants. Donations. The details are mentioned in the above table. On this factual matrix applicant is seeking an advance ruling on whether any grant/ Donation received towards performing specific services towards preservation of environment amounts to provision of service and liable to GST? Thus the central point of the discussion in the ruling is the entry at Sr. No. 1 of the Notification No.12/2017- Central Tax (Rate) dated 28/06/2017 that exempt services provided by an entity registered under section 12 AA of the Income Tax Act, 1961 by way of charitable activities from whole of the GST. We shall now visit, for better understanding, the notification which is as under:- S.No. Chapter, Section, Heading, Group or Service Code (Tariff) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ation toilets) as an alternative to flush toilets which cause wastage of large quantities of water. The applicant contends that this activity contributes to conservation of water reources and in particular reduces depletion of ground water resources. Another activity is waste management in which human excreta, instead of releasing it into the environment causing pollution is recycled for extraction of micro and macro nutrients which are used in agriculture. The applicant contends that conservation of water and prevention of pollution are essentially activities relating to preservation of environment. Having examined the nature of activities undertaken by the applicant, we find abundant force in their contention as it is a well known fact that flush toilets waste large quantities of water and that recycling of human excreta would reduces pollution of the environment. Therefore we are of the opinion that the applicant s activities are covered by the activity specified under Para 2(r)(iv) of the Notification relating to preservation of environment. Apart from the above, it is also a well-recognised fact one of the key areas for preventive healthcare is sanitation The Indian governm ..... X X X X Extracts X X X X X X X X Extracts X X X X
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