Classification of service— In the instant case, the applicant is  stated to be engaged in providing conservancy/solid waste management services to the Conservancy Department of the Howrah Municipal Corporation (HMC, for short) under the trade name of PEAU TRANSPORT.

Question raised for advance ruling is as follows—

Whether conservancy/solid waste management services provided by us is exempt from GST?

In the instant case, the work order issued by the Conservancy Department of Howrah Municipal Corporation describes the nature of the work for annual operation and maintenance of capacity portable compactor and hook loader. Further, from the copies of invoices as furnished by the authorized representative in course of personal hearing, it is noticed that the applicant has issued invoices describing particulars as ‘annual operation and maintenance of Compactor Machine for lifting and removal of garbage’.

The instant supply for annual operation and maintenance of compactor and hook loader is a composite supply of goods and services and such supply can qualify for exemption vide serial 3A of the Exemption Notification only when the value of goods involved in such composite supply does not exceed 25% of the value of supply and the same is provided to the Central Government, State Government or Union territory or local authority by way of any activity in relation to any function entrusted to a Panchayat under article 243G of the Constitution or in relation to any function entrusted to a Municipality under article 243W of the Constitution.

Held that— The applicant’s supply to the Howrah Municipal Corporation for operation and maintenance of capacity portable compactor and hook loader is eligible for exemption from payment of tax vide serial number 3A of the Notification No. 12/2017 – Central Tax (Rate).