Rajasthan AAR: 12% GST Levy on Disposal and Treatment Services of Bio-Medical Waste

In a recent decision, the Rajasthan Authority for Advance Ruling (AAR) bench noted that 12% Goods and Service Tax (GST) would apply to Services of Disposal and Treatment of Bio-Medical Waste collected from Clinical Establishments.

The problem is to be decided if the services of disposal and treatment of Bio-Medical Waste obtained from clinical establishments were obligated to tax.

The petitioner asks for an advance ruling towards the classification of services encompassed by the SAC code 999432 – Non-hazardous waste treatment and disposal services.

The petitioner is engaged in the disposal and treatment of biomedical waste generated via clinical installations at a facility that the state government allocated. They used to collect biomedical waste from accredited establishments and dispose of or treat it at their facility, assessing a predetermined fee under state policies.

Under Chapter Heading 009433 of the SAC codes as defined by Goods and Services Tax laws such services are classified.

The petitioner was granted a personal hearing dated 16.11.2023 and 01.01.2024. CA Abhay Gangwal appeared on behalf of the applicant for the personal hearing. He repeated the submission is been completed before in written submission and also furnished an application for the correction of the old para for seeking advance ruling over coverage of services covered under SAC 999433- “Non-hazardous waste treatment and disposal services to SAC 999432-“Hazardous waste treatment and disposal services.

Read Also: KAAR: GST Exemption on Supply of Food, Medicines, Drugs, etc. to In-Patients of a Hospital

The AAR bench of Mahipal Singh (Central Tax member) and Mahesh Kumar Gowla (State Tax member) stated that the service of disposal and treatment of Bio-Medical received via clinical establishment (9994) was levied to tax vide Notification No. 03/2022- Rate) on 13.07.2022 (effective from by amending Notification No. 11/201 ICI (Rate) dated 28.06.2017 with a rate of 6% (CGST).

Therefore, 12% GST (6% SGST + 6% CGST) is charged for these services. Therefore, the registered dealer is obligated to file GST on the aforementioned service.