In re Shubhabrata Chowdhury (GST AAR West Bangal)
The Authority for Advance Ruling (AAR), West Bengal, examined an application filed under Section 97 of the GST Act by an applicant engaged in operation and maintenance of machinery for municipal corporations and municipalities. The applicant performs services across solid waste management, sewerage and drainage, and public health departments, involving the operation of vehicles, routine maintenance, preventive servicing, and engagement of manpower for municipal activities. The applicant sought a ruling on whether these services are exempt from GST under Notification No. 12/2017 – Central Tax (Rate), Entry 3 or 3A.
The applicant submitted that its services—covering waste collection vehicles, compactors, sweepers, jetting machines, suction units, fogging machines, sanitation equipment and public health machinery—are integral to municipal functioning. It argued that maintenance and operation of these assets align with functions under Article 243W of the Constitution and therefore qualify for exemption as services provided to local authorities for statutory municipal functions. The applicant also emphasised that services rendered are non-commercial and necessary for sanitation, environmental compliance, and public health protection. According to the applicant, the services qualify either as pure services or composite supplies eligible under Entry 3 or 3A of Notification 12/2017.
