West Bengal Authority for Advance Ruling(AAR) allows GST Exemption on collection and disposal of Bio-Medical waste

Kolkata: The services provided to the West Bengal government for the collection and disposal of bio-medical waste would be exempted from GST, held West Bengal Authority for Advance Ruling ( AAR ) in a recent ruling.   

As per a media report in the Tax Scan, the petitioner who is the owner of SNG Envirosolutions Pvt Ltd 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 from several clinical establishments. 

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To fulfill the conditions of the agreement, the applicant subsequently entered into an agreement with Medicare Environmental Management Private Limited (Medicare) where Medicare was appointed as a sub-contractor for the collection and disposal of bio-medical waste. 

The petitioner contended in the court that since the services do not include any supply of goods and since the services are provided to the state government, they should be covered under entry serial number 3 of Notification No. 12/2017-Central Tax (Rate) thereby allowing it to be exempted from payment of tax under the GST Act. 

Further, the petitioner submitted that any type of pure services (excluding works contract service or other composite supplies involving supply of any goods) provided to the Central Government, State Government or Union territory or local authority shall be exempted by entry serial number 3 of Notification No. 12/2017-Central Tax (Rate) irrespective of the fact that such services are provided 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. 

Subsequently, the West Bengal Authority for Advance Ruling stated that the services provided by the applicant for the collection and disposal of bio-medical waste from various clinical establishments are a matter 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. 

As per the Tax Scan report, the Coram of Mr. Brajesh Kumar Singh, Joint Commissioner, and Mr. Joyjit Banik, Senior Joint Commissioner observed, "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)." It eventually held that the petitioner is exempted from payment of taxes under the GST Act. 

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