GST Not Payable On Waste Management Services Provided To Govt-Owned Clean Kerala: AAR

The Kerala Authority for Advance Ruling (AAR) has ruled  that solid waste management work carried out for Clean Kerala Company Limited is not taxable under GST, after finding that Clean Kerala is a government-owned company performing municipal functions.

The ruling came on an application filed by Tiffot Private Limited, which handles the collection, transport, processing and disposal of non-recyclable plastic waste for local bodies across Kerala. The work is carried out under an agreement with Clean Kerala Company Limited, a public sector undertaking wholly owned by the Kerala government and tasked with statewide solid waste management.

The authority looked closely at the nature of the work and said the activities clearly fall within “solid waste management” as defined under the Solid Waste Management Rules, 2016. It also accepted that Clean Kerala qualifies as a “governmental authority”, noting that it is entirely owned and controlled by the State government and has been entrusted with municipal functions under Article 243W of the Constitution.

Referring to a 2023 notification that brought back GST exemption for solid waste management services provided to governmental authorities, the AAR said the exemption squarely applies in this case. The notification, the Authority noted, specifically covers services provided “by way of solid waste management” to such bodies.

Accordingly, the AAR ruled that the solid waste management services provided by Tiffot Private Limited to Clean Kerala Company Limited are exempt from GST. Therefore, no tax is payable on it.