The Bengaluru Solid Waste Management Limited (BSWML), which was established by the state government to effectively manage solid waste, has been granted an exemption from paying 18% GST to the state government.
This decision to exempt BSWML from GST was made during the 52nd GST council meeting held on October 7 in New Delhi, chaired by Union Finance and Corporate Affairs Minister Nirmala Sitharaman.
During the meeting, a suggestion was put forward to exempt various services provided to governmental authorities. In these services, water supply, public health, sanitation, conservancy, solid waste management, and slum improvement and upgradation were included. The council granted this recommendation.
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Shikha C, the Commissioner for Commercial Taxes in Karnataka, confirmed the exemption and stated that it applies to pure public service organizations.
When asked about the impact on the state’s contribution to the Goods and Services Tax, she explained that the decision to exempt government bodies was made as it is a state fund.
An official from Bruhat Bengaluru Mahanagara Palike (BBMP), specializing in solid waste management (SWM), said it is a nice move to grant approval for the 18% exemption.
They mentioned that this matter had been previously brought before the council and has been on the waiting list for so long but has now received approval. Additionally, they highlighted that this exemption would lead to enhanced payment processes for contractors.
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He also said that they are waiting for a final court verdict to begin collecting user fees from citizens for solid waste management. Other large cities such as Delhi, Mumbai, and Indore, collect such fees.
Bengaluru has now become the city that does not collect GST for these services. The fees collected in other cities range from Rs. 2 per day to Rs. 100 per month. Implementing this system would ensure accountability in waste management, including collection and processing.
It would also hold Pourakarmikas, contractors, and BBMP responsible for ensuring proper waste management. Furthermore, this initiative would contribute to improving Bengaluru’s Swachh Bharat Ranking, the official stated.
