The West Bengal Authority for Advance Ruling ( AAR ) ruled that the service given to the state government for the collection and disposal of the bio-medical waste gets privileged from GST.
The petitioner is the owner of SNG Envirosolutions Pvt Ltd and has entered into an agreement with the department of health services, Department of Health & Family Welfare, Government of West Bengal for the collection and disposal of bio-medical waste occurred from various clinical establishments. To accomplish its obligations beneath the mentioned agreement, the petitioner has joined the agreement with the medical environmental Management Private Limited (Medicare) in which the medicare was hired as a sub-contractor for the collection and disposal of bio-medical waste.
The petitioner, to the council, that the services would not be engaged in any supply of goods and since the services are provided to State Government, it shall be covered under entry serial number 3 of Notification No. 12/2017-Central Tax (Rate) and thus will be exempted from payment of tax under the GST Act.
The petitioner submitted that any kind of pure services which does not include works contract service or additional composite supplies involving supply of any goods given to the Central Government, State Government or Union territory or local authority shall be exempted by entry serial number 3 of GST Notification No. 12/2017-Central Tax (Rate) whatever the concern that these services are given through the method of any activity concerning to any operation 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.
The council sees that the services given by the applicant for the collection and the disposal of bio-medical waste via different clinical establishments are seen to be a concern as listed in the Eleventh and/or Twelfth Schedule in relation to functions entrusted to a Panchayat under article 243G and/or to a municipality under article 243W of the Constitution of India.
“The Coram of Mr. Brajesh Kumar Singh, Joint Commissioner, and Mr. Joyjit Banik, Senior Joint Commissioner, has held that supplies provided by the applicant to State Government for collection and disposal of bio-medical waste from various clinical establishments shall get covered under entry serial number 3 of Notification No. 12/2017-Central Tax (Rate) and Notification No. 12/2017 State Tax (Rate).” Thus the petitioner is privileged from the payment of the tax beneath the GST act.
