The Chennai Authority for Advance Ruling ( AAR ) has held that the contract for the removal of legacy waste dumped through the bio-mining process is “Pure Service”.
The applicant, Srinivas Waste Management Services Private Limited is engaged Bio-Waste Management Sector and does all types of waste management like collection and transportation, manpower supply, bio mining, micro composting centre and Bio CNG gas.
The applicant has been awarded the work of removal of legacy waste through biomining process to reclaim the existing dump yard, revamping of dumpsite through biomining to recover land, maintaining the micro compost centres and processing wet waste, labour contract for collection and removing wet waste and bulk waste. TDS was to be collected and paid by the Municipalities and Corporations being recipients of service, if applicable and the applicant is not the person who has to collect and pay TDS.
The Tribunal comprising that the contracts received from various city corporations and municipalities towards the removal of legacy waste dumped at dump sites through the bio-mining process are “Pure services’ rendered to local authority and the activity was a function entrusted to a municipality under Article 243W of the Constitution.
Shri T G Venkatesh, I.R.S., Additional Commissioner and Smt. K Latha Joint Commissioner (ST) observed that the contracts are eligible for exemption from GST vide Sl. No.3 of Notification 12/2017-CT. (Rate) dated 28.06.2017. Further, the contract about Bio-CNG carried at the Central Asphaltic plant being a supply of goods and services together does not qualify as ‘Pure services’ and is not eligible for exemption under Sl. No.3 of Notification 12/2017-CT.
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