In Re M/s. Sumeet Facilities Limited (AAR GST Tamil Nadu)
1. What is the classification for supply of services by the Applicant relating to waste collection, segregation, treatment, transportation and disposal services under the service agreements entered with both concessionaries in terms of notification 11/2017- C.T.(Rate) dated 28th June 2017?
The supply of services by the applicant relating to waste collection, segregation, treatment, transportation and disposal services under the Service Agreements entered with both concessionaries are classified under SAC 9994 in terms of Notification No. 11/2017 C.T.-(Rate) dated 28.06.2017
2. Whether the activity of waste collection, segregation, treatment, transportation and disposal services carried out by the Applicant under the Service Agreements entered with both concessionaries is exempted from Goods and Services Tax in terms of entry no.3 of the Notification 12/2017- Central Tax (rate) dated 28.06.2017?
The activity undertaken by the applicant under the Service Agreements entered with both concessionaries are not exempted from Goods and Services Tax in terms of entry no. 3 of the Notification 12/2017- Central Tax Dated 28.06.2017
FULL TEXT OF ORDER OF AUTHORITY OF ADVANCE RULING, TAMIL NADU
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.
Sumeet Facilities Limited, 403, Jeeva Colony, Udumalai Road, Kondarasampalayam Dharapuram, Tiruppur-638657 (hereinafter called the `Applicant’) is registered under the GST Vide GSTIN 33AACCS3411J1ZP. They are engaged in supplying services of Waste Management, Mechanized Road Sweeping, Business Support Staffing and other services relating to Integrated Facility Management. They have sought Advance Ruling on the following questions:
1. What is the classification for supply of services by the Applicant relating to waste collection, segregation, treatment, transportation and disposal services under the service agreements entered with both concessionaries in terms of notification 11/2017- C.T.(Rate) dated 28th June 2017?
2. Whether the activity of waste collection, segregation, treatment, transportation and disposal services carried out by the Applicant under the Service Agreements entered with both concessionaries is exempted from Goods and Services Tax in terms of entry no.3 of the Notification 12/2017-Central Tax (rate) dated 28.06.2017?
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 are engaged in supplying services of Waste Management, Mechanized Road Sweeping, Business Support Staffing and other services relating to Integrated Facility Management to private sector entities as well as public sector entities and Governmental organizations. They have multistate presence in India in various States such as Maharashtra, Tamil Nadu, Andhra Pradesh, Gujarat, Karnataka, Chhattisgarh, Rajasthan and New Delhi. On 10th March 2020, they have entered into two separate Service Agreements for supply of waste collection, segregation, treatment, transportation and disposal services for the Greater Chennai Corporation with following entities:
(i) Sumeet Urban Services (Chennai) II Private Limited, Chennai
(ii) Sumeet Urban Services (Chennai) V Private Limited, Chennai
The services referred above will commence effective April 2020.
2.2 The applicant has stated that The Greater Chennai Corporation established under the Chennai City Municipal Corporation Act, 1919 (hereinafter referred as the ‘Authority) invited proposals in June 2019 for implementing ‘Collection and Transportation of Solid Waste, Street Sweeping Waste including Street Sweeping activities, Horticulture Waste and Collection and Storage of Domestic Hazardous Waste’ in the following zones of the City of Greater Chennai – (i) 9, 10 and 13; (ii) 11, 12, 14 and 15 . The Applicant and their foreign partner M/s Urbaser Company S. A. has responded and submitted their intent to bid proposals. The Authority accepted the bids and issued letter of Awards (LOA) in December 2019 for the specified zones of the City of Greater Chennai. Being the successful bidder, the applicant and their foreign partner has promoted and incorporated two special purpose vehicles (SPV or concessionaries) under companies Act 2013, as below:
i. M/s Sumeet Urban Services(Chennai) II Private Limited, Chennai
ii. M/s Sumeet Urban Services(Chennai) V Private Limited, Chennai The authority accepted the request of the bidder to accept the two SPVs as the concessionaires to undertake and perform obligations and exercise rights of the bidder under the LOA for undertaking the project and entered into Concession Agreement with the SPV’s Zone-wise separately on 24th February 2020. The Authority has granted and authorised the concessionaries to investigate, study, design, engineer, procure, finance, consent, operate and maintain the project and to exercise and enjoy the rights, powers, privileges, authorisations and entitlements as set forth in the said concession agreements. The obligations and activities to be carried out by the concessionaries are as below:
