In re Srinivas Waste Management Services Private Limited (GST AAR Tamilnadu)
Q1. 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?
A1. Contracts entered into with various city corporations and municipalities towards supply of pure services in relation to Solid waste management, except that of Bio-CNG carried on at the Central Asphaltic Plant for the Greater Chennai Corporation are exempted from GST vide SI.No.3 of Notification 12/2017- CT.(Rate) dated 28.06.2017(as amended).
Q2. 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 Sl.No.3 of Notification 12/2017- CT.(Rate) dated 28.06.2017?
A2. Contracts entered into with various city corporations and municipalities towards supply of pure services towards removal of legacy waste dumped at dump site through bio-mining process are exempted from GST vide SI.No.3 of Notification 12/2017- CT.(Rate) dated 28.06.2017 (as amended).
3. Whether GST TDS is applicable or not for the exempted contracts?
In this case, TDS is 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. It is agreeable that the applicant supplies the service but the question raised is not on the applicability of the Notification to the applicant but the applicability of the Notification to the recipient of the services, who is a distinct person for whom this ruling is not applicable as per Section 103 of the Act. For ease of reference, Section 103 of the Act is given below:-
103. Applicability of advance ruling.- (1) The advance ruling pronounced by the Authority or the Appellate Authority under this Chapter shall be binding only,- (a) on the applicant who had sought it in respect of any matter referred to in subsection (2) of section 97 for advance ruling; (b) on the concerned officer or the jurisdictional officer in respect of the applicant.
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.
FULL TEXT OF THE ORDER OF AUTHORITY FOR ADVANCE RULING, TAMILNADU
Note: Any appeal against the Advance Ruling order shall be filed before the Tamil Nadu State Appellate Authority for Advance Ruling, Chennai under Sub-section (1) of Section 100 of CGST ACT/TNGST Act 2017 within 30 days from the date on which the ruling sought to be appealed against is communicated.
At the outset, we would like to make it clear that the provisions of both the Central Goods and Service Tax Act and the Tamil Nadu Goods and Service Tax Act are the same except for certain provisions. Therefore, unless a mention is specifically made to such dissimilar provisions, a reference to the Central Goods and Service Tax Act would also mean a reference to the same provisions under the Tamil Nadu Goods and Service Tax Act.
SRINIVAS WASTE MANAGEMENT SERVICES PRIVATE LIMITED, F-3 Harmony Enclave, No.8, M.P. Avenue, Abusali Street, Saligramam, Chennai-600083 (hereinafter called the Applicant) are registered under GST with GSTIN 33AAMCS4438B1ZJ. The applicant has sought 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 Notification 12/2017- CT.(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 assembled at a single point which makes collection and transportation an integral and vital part of waste management. C & T process involves the collection of biodegradable and non-biodegradable waste either from specific households or streets and transporting those using suitable vehicles to a designated disposal area. The applicant has partnered with the corporation of Tirupur and Tirunelveli and many other Municipalities to carry out the primary and secondary collection and transportation. The applicant has detailed the services as below:
Bio Mining:
It is the process of segregating the already accumulated urban legacy solid wastes, helping in cleaning up legacy dumpsites. This helps scientifically reclaim these lands for better usage. This is extremely crucial today as the dump yards that were conceptualized originally to be outside the city are right at the epicenter of real estate development these days. The applicant has stated that they are one of the leading players in this space and has undertaken 9 bio mining sites across Tamilnadu and has been playing a major role in this field.
Micro Composting Center:
It is a facility where wet waste is processed to compost. The compost will be packed and given to concerned corporations/municipalities.
Bio CNG Gas:
It is the purified form of biogas where all unwanted gases are removed to produce a high amount of pure methane gas. Bio CNG has high level of methane and less carbon dioxide and can be environmental friendly with very low emission levels. It has the capacity to replace every utility of LPG and CNG in India and has potential to be the future of renewable fuel because of the abundance of biomass in the country’ says the study. They have stated that the greater Chennai Corporation has selected them to collect, transport and process the wet waste and convert it in to Bio-CNG (100 metric tonne capacity) at Central Asphaltic plant in Chennai Zone- 8 (near Chetpet) in DFBOT (design, finance, build, operate, transfer) model under PPP mode.
2.2 The applicant has submitted the following Annexure for work contract details LOA wise:
ANNEXURE – II
Srinivas Waste Management Service (P) Ltd
Work Contract details LOA Wise
