Pure service exemption for municipal waste transport confirmed; activity qualifies as a municipal function and is tax exempt.

Pure service exemption for municipal waste transport confirmed; activity qualifies as a municipal function and is tax exempt.Case-LawsGSTThe note concludes that services of carrying segregated municipal waste for a municipal corporation constitute a pu…

Pure service exemption for municipal waste transport confirmed; activity qualifies as a municipal function and is tax exempt.
Case-Laws
GST
The note concludes that services of carrying segregated municipal waste for a municipal corporation constitute a pure service and fall within activities entrusted to municipalities under Article 243W; therefore they meet the three conditions for exemption under Serial No. 3 of Notification No.12/2017: (i) absence of transfer of property in goods or a works contract/composite supply, (ii) recipient is a local authority constituted under Articles 243P/243Q, and (iii) service relates to a Twelfth Schedule municipal function; consequently the service is tax exempt under that entry.
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