Manpower-Based Municipal Services For Ganges Ghat Special Cleanliness Drive Exempt From GST: West Bengal AAR

The West Bengal Authority for Advance Ruling (AAR) has held that supply of unskilled labour for special cleanliness drive for cleaning Ganga ghats would qualify as 'Pure Service'. In a ruling by Shri. Shafeeq S (Member- Central Tax) and Shri. Jaydip Kumar Chakrabarti (Member-State Tax) it was observed that operation and maintenance services to various Corporations and Municipalities who were 'Local Authorities'. These local authorities in turn use those services under Solid Waste Management project in relation to functions entrusted on local authorities under Articles 243G and 243W of the Constitution, reckoned the West Bengal AAR. Applicant was engaged in operation and maintenance of corporation & municipalities machineries including operators under solid waste management, sewerage and drainage department and public health services. It sought advance ruling on whether operation and maintenance services provided to Municipalities and Municipal Corporations were exempt from GST under Notification No. 12/2017 - Central Tax (Rate) vide Entry no. 3 or 3A. The activities undertaken by Applicant involved operation and maintenance services of movable compactor, Baxy SWM vehicles, four wheeled box tipper, Jetting-cum-Suction machine, four wheeled auto tipper, Rope Bucket Machine, Deep Suction Vehicle, De-silt machine, ambulance, hearse van, hydraulic ladder, sanitising machine, compost unit, weigh bridge and maintenance of movable toilet. supply of manpower provided to Municipalities and Municipal Corporations. As for exempt nature of services, the West Bengal AAR observed that same would depend on the ratio of value of goods involved in the total value of the supply. Further, it was clarified that if the value of goods was not more than 25% of the total value of supply, the supply will qualify for serial no. 3A of Notification No. 02/2018 – Central Tax (Rate) dated January 25, 2018. However, if the value of supply of goods in respect of the above works being composite supplies was more than 25% of the total value of such supply, such services having SAC 9987 will fall under serial no. 25 of Notification No. 11/2017 – Central Tax (Rate) Dated 28.06.2017, as amended, taxable 18% (CGST +SGST). Case Name: Shubhabrata Chowdhury For Applicant: Mr. Samik Chakrabarty, Mr. Binay Mukhopadhyay Click hereto read the AAR Order.

Manpower-Based Municipal Services For Ganges Ghat Special Cleanliness Drive Exempt From GST: West Bengal AAR

Parul Bose

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