In re Banchu Das (GST AAR West Bengal)
Annual operation and maintenance of compactor and hook loader for lifting and removal of garbage is a composite supply of goods and services
The AAR, West Bengal in the matter of Banchu Das [Advance Ruling No. WBAAR 23 of 2022 dated October 21, 2022] has ruled that, the supply of services to the Government or Government authority for annual operation and maintenance of capacity portable compactor and hook loader cannot be regarded as pure services and it is a composite supply of goods and services as it involves supply of goods like spare parts. Further, such composite supply is eligible for exemption from the payment of GST vide Sl. No. 3A of the Notification No. 12/2017 – Central Tax (Rate) dated 28/06/2017 (“the Services Exemption Notification”), if the value of goods involved in such composite supply does not exceed 25% of the value of supply.
Facts:
Banchu Das (“the Applicant”) is engaged in providing conservancy/solid waste management services to the Conservancy Department of the Howrah Municipal Corporation (“HMC”).
The Applicant submitted that the services provided by them is a “Pure service” which is covered under Sl. No. 3 of the Services Exemption Notification, which exempts the pure services provided to the Government or a Government Authority by way of an activity in relation to any function entrusted to a Panchayat under Article 243G of the Constitution or in relation to any function entrusted to a Municipality under Article 243W of the Constitution.
Issue:
Whether conservancy/solid waste management services provided by the Applicant is exempt from the levy of GST?
Held:
The AAR, West Bengal in the matter of Advance Ruling No. WBAAR 23 of 2022 held as under:
