Classification of service— In the instant case, the applicant submits that the State Urban Development Authority (SUDA, for short) has accepted his offer for design, build, finance, operate and transfer of Municipal Wet Waste processing facility based on Composting and/or Bio-methanation Technology, setting up Semi-Automatic Material Recovery Facility for Dry Waste and construction of Sanitary Landfill along with operation & maintenance for 10 years (Renewable) under Swachh Bharat Mission/Mission Nirmal Bangla and accordingly has issued “Letter of Acceptance cum Work Order” to him to carry out the said activities in respect of a number of municipalities in West Bengal.

Question raised for advance ruling are as follows—

(a) Classification of goods/services as per work order.

(b) What is the GST rate for above job?

The supply agreed to be provided by the applicant as it appears from the documents produced before us is in the nature of waste management services. We find that ‘waste collection services’ and ‘waste treatment and disposal services’ fall under SAC 9994 having Group 99942 and 99943 respectively. Further, ‘sewage and waste collection, treatment and disposal and other environmental protection services’ is taxable @ 18% vide serial number 32 of Notification No. 11/2017-Central Tax (Rate) dated 28.06.2017, as amended from time to time.

Undisputedly SUDA, being a registered society, is not a Panchayat or a Municipality or any Board or Cantonment as specified in the above-referred definition of local authority. Further, no documents have been produced before us wherefrom it can be established that SUDA is an authority who is legally entitled to and entrusted by the Government with the control or management of a local fund. Therefore, SUDA cannot be held as a local authority as defined in clause (69) of section 2 of the GST Act and the supply involved in the instant case thus fails to qualify for exemption vide serial number 3 or 3A of the Exempt Notification. 

Held that— Supply of services to be provided by the applicant to State Urban Development Agency for design, build, finance, operate and transfer of Municipal Wet Waste processing facility based on Composting and/or Bio-methanation Technology, setting up Semi-Automatic Material Recovery Facility for Dry Waste and construction of Sanitary Landfill along with operation & maintenance under Swachh Bharat Mission/Mission Nirmal Bangla is classifiable under SAC 9994 as ‘sewage and waste collection, treatment and disposal and other environmental protection services’ and is taxable @ 18% vide serial number 32 of Notification No. 11/2017-Central Tax (Rate) dated 28.06.2017, as amended from time to time (corresponding West Bengal State Notification No. 1135 F.T. dated 28.06.2017).