Taxability of Cleaning of Drains, Sanitary Work and Sold Waste Management Services Provided to Municipality—D. Ramachandra Rao

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The Tax Publishers GST--Exempted Services Taxability of Cleaning of Drains, Sanitary Work and Sold Waste Management Services Provided to Municipality D. Ramachandra Rao The learned author seeks to analyse an issue as to whether the contract for cleaning of drains, sanitary work and solid waste management awarded by a Municipality was exempt from levy of GST under S. No. 3 of Notification No. 12/2017-Central Tax (Rate), dt. 28-6-2017. The issue under consideration is being discussed in the light of a recent Madras High in the light of relevant exemption entry and some judicial precedents. 1. Exemption to pure services provided to Municipality, Panchayat, etc. As per S. No. 3 of Notification No. 12/2017-Central Tax (Rate), dt. 28-6-2017, 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 or a Governmental authority or a Government entity 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, are exempt from levy of tax. SUBSCRIBE FOR FULL CONTENT

The Tax Publishers

GST--Exempted Services

Taxability of Cleaning of Drains, Sanitary Work and Sold Waste Management Services Provided to Municipality

D. Ramachandra Rao

The learned author seeks to analyse an issue as to whether the contract for cleaning of drains, sanitary work and solid waste management awarded by a Municipality was exempt from levy of GST under S. No. 3 of Notification No. 12/2017-Central Tax (Rate), dt. 28-6-2017. The issue under consideration is being discussed in the light of a recent Madras High in the light of relevant exemption entry and some judicial precedents.

1. Exemption to pure services provided to Municipality, Panchayat, etc.

As per S. No. 3 of Notification No. 12/2017-Central Tax (Rate), dt. 28-6-2017, 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 or a Governmental authority or a Government entity 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, are exempt from levy of tax.