Classification of service— In the instant case, the applicant is seeking advance ruling on the following question:-

1) Whether the proposed service in the contract comes under the definition of Composite supply of Goods and Service” at SI. No. 3A of Chapter 99 as mentioned in notification number 12/2017 - Central Tax (rate) dated 28th June 2017 as amended by Notification No 2/2018 - Central Tax (rate) dated 25th January 2018.

2) Whether the proposed recipient of service i.e. Nagar Palika Parsihad, Muni ki Reti, Dhalwala falls under the definition of “local authority or a Governmental authority or a Government Entity” as mentioned and / or defined in the notification mentioned in point 1) above?

3) Whether the said service/work is covered under the “function entrusted to a Municipality under article 243W of the Constitution”?

4) Whether the said contract is exempt from Goods and Service Tax in accordance with notification number 12/2017 - Central Tax (rate) dated 28th June 2017 as amended by Notification No. 2/2018 - Central Tax (rate) dated 25th January 2018.

In the instant case the applicant has arranged only drivers to the service recipient and no movable property was supplied alongwith them. In the instant case only vehicle can be the movable property to be supplied alongwith. drivers as the drivers can use only vehicle and nothing than that. Safety kits/ protective gears are not separate goods to be used in driving the vehicles.

Held that— 

1) The contract for supply of manpower for managing solid waste does not come under the definition of “Composite supply of Goods and Service” at Entry No. 3A of Chapter 99 as mentioned in notification number 12/2017 - Central Tax (rate) dated 28th June 2017 as amended by Notification No 2/2018 - Central Tax (rate) dated 25th January 2018.

2) Nagar Palika Parsihad, Muni ki Reti, Dhalwala is covered under the definition of “local authority” in view of Section 2(69) of the CGST Act, 2017.

3) The service of supplying of manpower for managing solid waste is covered under the “Function entrusted to a Municipality under article 243W of the Constitution”.

4) The contract of supplying of manpower to Nagar Palika Parishad, Muni Ki Reti, Dhalwala for managing solid waste is exempt from Goods and Service Tax in accordance with Entry No.3 of Notification No. 12/2017 - Central Tax (rate) dated 28th June 2017 as amended.