In re Jay Kay Trans (GST AAR Tamilnadu)
The Authority for Advance Ruling, Tamil Nadu considered an application filed by M/s Jay Kay Trans, a proprietorship concern engaged in sanitation, solid waste management and urban cleanliness, concerning the classification and GST exemption applicable to services provided to the Greater Chennai Corporation (GCC). The applicant had entered into an agreement dated 02.06.2025 with the GCC for upkeeping and maintenance of Tamil Nadu Urban Habitat Development Board (TNUHDB) Housing Units in Zone 15—Outer Perumbakkam for nine months from 17.05.2025 to 17.03.2026. The work order, valued at Rs.8,94,20,000 inclusive of taxes, required deployment of 369 personnel and supervisors, sweeping and cleaning of common areas, household waste collection, segregation and disposal, provision of bins, brooms, rakes, bleaching powder, lime powder and welfare items for personnel.
The applicant sought rulings on two questions: the classification of the upkeeping and maintenance services and whether the services qualified for exemption under Serial No. 3A of Notification No. 12/2017-Central Tax (Rate) dated 28.06.2017, as amended. During the personal hearing, the applicant stated that the probable SAC was 999423—General Waste Collection Services, Residential. The applicant contended that the supply satisfied the three conditions of Entry 3A: it was a composite supply of goods and services with the value of goods not exceeding 25% of the total value; it was provided to a local authority; and it related to a municipal function under Article 243W of the Constitution. The applicant also submitted that the value of goods was approximately 1.77%, supported by a Chartered Accountant certificate, and that consumables and welfare items were used for performing the contract without transfer of ownership or possession to the GCC.
