TMI Blog2020 (3) TMI 412X X X X Extracts X X X X X X X X Extracts X X X X ..... g station with the help of hook loaders mounted in compactor machine. There is, however, no reference to any supply of goods in the course of executing the work. The consideration to be paid measures the work only in terms of the quantity of the garbage lifted and removed. Based on the above documents, it may, therefore, be concluded that the Applicant's supply to HMC is a pure service. Furthermore, Article 243W of the Constitution that discusses the powers, authority and responsibilities of a Municipality, refers to the functions listed under the Twelfth Schedule as may be entrusted to the above authority. SI No. 6 of the Twelfth Schedule refers to public health, sanitation, conservancy and solid waste management. The Applicant' ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... unication of this Ruling, or within such further time as mentioned in the proviso to Section 100 (2) of the GST Act. Every such appeal shall be filed in accordance with Section 100 (3) of the GST Act and the Rules prescribed thereunder, and the Regulations prescribed by the West Bengal Authority for Advance Ruling Regulations, 2018. 1. Admissibility of the Application 1.1 The Applicant is stated to be providing conservancy/solid waste management service to the Howrah Municipal Corporation (hereinafter the HMC). The HMC, however, is deducting TDS while paying consideration for the above supply in terms of Notification No. 50/2018 -Central Tax dated 13/09/2018 (corresponding State Notification No. 1344 - FT dated 13/09/2018) and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he said composite supply. 2.2 The Applicant submits that the recipient, being a municipal corporation, is a local authority. He submits copies of the work orders issued, specification and terms and conditions of the work etc. to establish that he supplies pure service and, therefore, the exemption under SI No. 3 of the Exemption Notification applies to his supplies. 3. Submission of the Revenue 3.1 The concerned officer of the Revenue has commented that the above-mentioned work of the applicant is covered under Notification No 1136 F.T. dated 28/06/2017 and exempted from paying of tax. 4. Observations and findings of the Bench 4.1 In its Circular No. 51/25/2018-GST dated 31/07/2018 the Central Government clarifies tha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ic welfare service that the governments on their own, and sometimes through governmental authorities/entities, do provide to the citizens. When the activity is in relation to any such function, the supply to the governments or governmental authorities/entities or local authorities is exempt from paying GST under SI No. 3 or 3A of the Exemption Notification, provided it is either a pure service or a composite supply, where supply of goods does not constitute more than 25% of the value. 4.3 The Applicant's eligibility under SI No. 3 or 3A of the Exemption Notification should, therefore, be examined from three aspects: (1) whether the supply being made is pure service or a composite supply, where supply of goods does not exceed mor ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cipality, refers to the functions listed under the Twelfth Schedule as may be entrusted to the above authority. SI No. 6 of the Twelfth Schedule refers to public health, sanitation, conservancy and solid waste management. The Applicant's supply to HMC is a function mentioned under SI No. 6 of the Twelfth Schedule. 4.7 The Applicant's service to HMC, therefore, is exempt under SI No. 3 of the Exemption Notification. 4.8 The TDS Notifications bring into force section 51 of the GST Act, specifying the persons under section 51 (1)(d) of the Act and have mandated and laid down the mechanism for deduction of TDS. These notifications, therefore, are applicable only if TDS is deductible on the Applicant's supply under section 51 o ..... X X X X Extracts X X X X X X X X Extracts X X X X
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