TMI Blog2022 (7) TMI 404X X X X Extracts X X X X X X X X Extracts X X X X ..... ' and is found not eligible for exemption under SI.No.3 Notification 12/2017-C.T. (Rate) dated 28.06.2017(as amended). The Greater Chennai Corporation was formed vide G.O.Ms.No. 152, Dt.26.10.2015 which was earlier established as Chennai Corporation that originally was formed as Madras Municipal Corporation on the 29th September 1688. The service recipients are various Municipal Corporations which are all local authorities. As per Section 2 clause (69) sub- clause (b) of the CGST Act, 2017 'Municipality' as defined in clause (e) of article 243 P the Constitution is a local authority, hence the services are provided to 'Local Authority' and the criterion related to recipient is satisfied. Whether the activity is a function entrusted to a municipality under Article 243W of the Constitution? - HELD THAT:- On a cogent reading of SI.No. 6 of the Twelfth Schedule to the Constitution and Rule 15 of the Solid Waste Management Rules 2016, it is evident that it is the duty of the local authority to investigate, analyse the existing dumpsites for their potential bio-mining and bio-remediation and wherever feasible has to take actions to bio-mine or bio-remediate th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t Advance Ruling on the following questions:- 1. Whether contracts received from various city corporations and a municipality towards Solid waste management is exempted from GST vide Sl.No.3 of Notification 12/2017-CT.(Rate) dated 28.06.2017? 2. Whether contracts received from various city corporations and municipalities towards removal of legacy waste dumped at dump site through bio-mining process is exempted from GST vide SI.No.3 of 12/2017-C.T.(Rate) dated 28.06.2017? 3. Whether GST TDS is applicable or not for the exempted contracts? The Applicant has submitted the copy of application in Form GST ARA - 01 and also submitted a copy of Challan evidencing payment of application fees of Rs.5,000/- each under sub-rule (1) of Rule 104 of CGST rules 2017 and SGST Rules 2017. 2.1 The applicant has stated that they have more than 18 years of experience in Collection and Transportation (C T). They are handling about 800 metric tons of waste per day from different urban local bodies. They are having more than 2000 employees on the ground performing C T and fleet of 150+ vehicles. They have stated that the waste are produced in different areas but have a need to be ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ract Value- (Rs ) I. Removal of the legacy waste of through Bio Mining process to reclaim the existing dump yard: 1 Roc.No. 1207/2018/E1 15/11/2018 Avadi Municipality - Sckkadu Compost Yard 4,30,47,919.20 2 Roc.No. 945/18/E1 11/12/2018 Gudalur Municipality - Pethukulam 3,96,42,121.00 3 Roc.No. 1899/18/E1 14/12/2018 Rasipuram Municipality 2,75.03.000.00 4. S.W.M.C.NO. A7/1034/2018 8/03/2019 Greater Chennai Coporation - Atthipattu Dump Site 6,02,85,137.00 5 S.W.M.C. No. A7/1035/2018 8/03/2019 Greater Chennai Coporation - Pallikaranai Dump Site 2.62,56.867.00 6 S.W.M.C. No. A7/3290/2018 8/03/2019 Greater Che ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pplication ii. Work orders and invoice copies for the following LOA Nos:- No.198/2019/H1 dated 15.07.2020 No. 1981/2018 /H1 dated 31.12.2021 S.W.M.C No. A7/0109/2020 dated 13.08.2020 S.W.M.C No. A7/1034/2018 dated 08.03.2019 Roc No.2256/2020/El dated 14.12.2020 Roc No. 3481/2018/E1 dated 13.12.2018 3.3 On perusal of the submissions made by the applicant it was seen that they have furnished the documents/invoice in r/o I - SI.No 4,8 , II- Sl.no. 1, III-Sl.No.1, IV-SI. No 2,3 of Annexure-II furnished by them. Hence, the applicant was asked to furnish the details of all the contracts and invoices along with period of work and activities in brief for the work contract details mentioned in Annexure II of their application within a weeks' time. 3.4 The applicant vide their letter dated 22.04.2022, submitted all documents pertaining to the work contracts mentioned in Annexure II of the application. 4. The Central Jurisdictional authority has not furnished any comments on the question raised by the applicant and hence, it is construed that there are no cases are pending on the questions raised by the applicant in their jurisdiction. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pplicant. Therefore, we do not find the question no.3 answerable. Hence the question on applicability of TDS on the exempted contracts is not admitted for consideration. 7.1 From the submissions made by the applicant, it is seen that the applicant is seeking ruling on the applicability of SI.No. 3 of Notification No. 12/2017-C.T.(Rate) dated 28.06.2017 in respect the following contracts: ANNEXURE - II Srinivas Waste Management Service (P) Ltd Work Contract details LOA Wise SI No. LOA No. LOA Dt. Customer Name Contract Value- (Rs ) I. Removal of the legacy waste of through Bio Mining process to reclaim the existing dump yard: 1 Roc.No. 1207/2018/E1 15/11/2018 Avadi Municipality - Sckkadu Compost Yard 4,30,47,919.20 2 Roc.No. 945/18/E1 11/12/2018 Gudalur Municipality - Pethukulam 3,96,42,121.00 3 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ining process to reclaim the existing dump yard and recover the land entered into with the Corporations and Municipalities; SI.No.Ill-1 is for Micro composting done for Greater Chennai corporation, South Zone; Sl.No.IV-1 is for Bio CNG process carried on at Central Asphaltic Plant and that mentioned at Nos.2 3 are for labour contracts entered into with Tambaram and Thiruverkadu municipality for collection and removal of wet and bulk waste. The applicant claims that as per Sl.No.3 of Notification 12/2017-C.T.(Rate) dated 28.06.2017 as amended, the services so provided are exempted under GST and has sought clarification. 8.1 The question for which the ruling is sought is whether the contracts received from various city corporations and Municipalities towards Solid Waste Management and towards removal of legacy waste through bio-mining process carried on by the applicant are exempted under SI. No. 3 of notifications No. 12/2017-C.T.(Rate) dt: 28.06.2017 as amended. The relevant entry is reproduced as under: SI.No. Chapter, Section, Heading, Group or Service Code (Tariff) Description of Services Rate (p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Rasipuram Municipality Reclamation of existing dump yard at compost yard (Biomining) Invoices raised till 31.03.2022 24915 Cu.mtr 4 S.W.M.C No. A7/1034/2018 dated 08.03.2019 GCC-Atthipattu dumpsite Removal of legacy waste through biomining process Invoices raised till 31.03.2022 41949 Cu.mtr 5 S.W.M.C No. A7/1035/2018 dated 08.03.2019 GCC-Pallikarnai dumpsite Removal of legacy waste through biomining process Invoices raised till 28.09.2021 40853 Cu.mtr 6 S.W.M.C NO.A7/3290/2018 dated 08.03.2019 GCC-Saathangadu dumpsite Removal of legacy waste through biomining process Invoices raised till 09.03.2022 31768 Cu.mtr 7 Roc No.E1/3209/20 15 dated 27.10.2020 Thoothukudi Smart city ltd Removal of legacy waste of 227000 cum through biom ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cation of GCC-Southern region zones 11, 12 13 by employing labours, operators; process the waste in an eco-friendly and non-polluting process and the by-product of manure to be handed over to GCC. Here the service receiver namely the GCC will only hand over the existing centers for maintenance and processing of wet waste. Thus the contractor namely the applicant will be providing the service of maintenance of such Micro compost centers at their own cost by employing labours and operators. Hence the services rendered are found to be 'Pure services'. (iii) Labour contract-collection removal of wet waste and bulk waste Sl.No LoA No. and date Customer Name Scope of work Invoices 2 No.1981/2018/H1 dated 25.06.2020 Tambaram Municipality Supply of 161 labourers to collect and clear solid waste Invoices raised till 31.03.2022 3 NO.198/2019/H1 dated 15.07.2020 Thiruverkadu Municipality Supply of 192 labourers to co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nstruction, GCC will issue commissioning and Go-Live certificate. Phase-II: operations and Maintenance phase- During this phase, the contractor will arrange to collect the wet waste from the generators, transport, segregate, process and convert it in to Bio-CNG to 50MT/day. The contractor has to identify potential buyers, sell the same at price fixed by them. The plant will be maintained by the contractor. Finally the contractor shall be responsible for asset transfer on completion of concession period or the closure period on working conditions to GCC without any cost. The contractor will pay royalty fee for the land allotted by GCC. From the above points of the agreement, it is observed that the facility viz., BIO-CNG will be built, operated by the applicant and will be transferred to the GCC without any cost at the end of the agreed upon period. Thus it is seen that the work involved is a composite supply of goods and services as it involves transfer of facility built by the contractor which would include the Plant and machinery and support structures. Hence this supply of the applicant is not 'Pure services'. Therefore, we find that the contract entered ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ment. Further, as per the Solid Waste Management Rules 2016, the Duties of Local Authorities is given under Rule 15 of the said rules and it is stated that:- 15. Duties and responsibilities of local authorities and village Panchayats of census towns and urban agglomerations. - The local authorities and Panchayats shall, - (a) prepare a solid waste management plan as per state policy and strategy on solid waste management within six months from the date of notification of state policy and strategy and submit a copy to respective departments of State Government or Union territory Administration or agency authorised by the State Government or Union territory Administration; .. (zh) stop land filling or dumping of mixed waste soon after the timeline as specified in rule 23 for setting up and operationalisation of sanitary landfill is over; (zi) allow only the non-usable, non-recyclable, non-biodegradable, non-combustible and nonreactive inert waste and pre-processing rejects and residues from waste processing facilities to go to sanitary landfill and the sanitary landfill sites shall meet the specifications as given in Schedule I, howeve ..... 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