In re Nellai Motors (GST AAR Tamilnadu)
Tamil Nadu Authority for Advance Ruling (AAR) in the case of In re Nellai Motors examined the applicability of the Goods and Services Tax (GST) exemption for services related to maintaining micro compost centres. The applicant, M/s Nellai Motors, sought clarification on whether its service of maintaining and processing wet waste at designated locations in Chennai, as per its contract with the Greater Chennai Corporation (GCC), qualifies for exemption under Serial No.3 of Notification No.12/2017-Central Tax (Rate), dated 28.06.2017. The ruling concluded that the services fall under “Waste Treatment and Disposal Services” (SAC 99943) and are exempt from GST.
M/s Nellai Motors had entered into an agreement with GCC to manage micro compost centres across five zones in Chennai, ensuring eco-friendly waste processing in compliance with Tamil Nadu Pollution Control Board norms. The services included odor-free processing, security for the centres, and ensuring the composting process remained non-polluting. The applicant argued that since these were “pure services” provided to a local authority, they should qualify for GST exemption. The case relied on judicial precedents, including rulings in Jay Kay Trans (AAR No.30/2022) and Zigma Global Environ Solutions Pvt. Ltd. [2020 (43) GSTL 96 (AAR-GST-TN)], which had established that similar waste management services provided to municipalities qualified for exemption under the GST framework.
