Maintenance of micro-compost centres for Greater Chennai Corporation are exempt under GST: AAR

Case Details: Authority for Advance Rulings, Tamilnadu Gokulram Shanmugam Kantharajan, In re - [2022] 145 taxmann.com 325 (AAR - TAMILNADU)

Judiciary and Counsel Details

• T.G. Venkatesh & TMT. K. Latha, Member
• Jay Kay Trans for the Applicant.

Facts of the Case

The applicant received solid wet waste from Greater Chennai Corporation and handed over the by-product of manure after processing to Greater Chennai Corporation. It filed an application for advance ruling to determine classification and taxability of services of maintaining of micro-compost centres and processing of solid wet waste for Greater Chennai Corporation (GCC).

AAR Held

The Authority for Advance Ruling observed that these services shall be rendered to GCC which is a Municipality and a Local Authority in terms of Section 2(69)(b) of Central Goods and Services Tax Act, 2017. Moreover, these services would be pure services in nature of activities entrusted to a municipality under SI. No. 6 of Twelfth Schedule (Article 243W) to Constitution of India. Thus, these services provided by the applicant would be eligible for exemption from GST and would be classifiable under SAC 99943 as ‘Waste Treatment and Disposal services’.