Sweeping of premises (Public or Residential) is not eligible for exemption as "Sanitation and similar Service: West Bengal AAR

Issue:

Can Sweeping of Premises - Public or residential be considered as "Sanitation or similar Service" and be exempt from GST as per Sr. No. 3 or 3A (supply of certain services to the government, local authority, governmental authority, or government entity. The service should be an activity in relation to any function entrusted to a Panchayat under Art 243G of the Constitution or to a Municipality under Art 243W of the Constitution) of Notification 12/2017 (CR)?

Held:

"Sanitation and similar services‟ are classified under SAC 99945. It includes sweeping and cleaning, but only with reference cleaning of a road or street. Sweeping of premises – public or residential – is not classified under "Sanitation or similar service‟, Sweeping service that the Applicant supplies to the Housing Directorate cannot, therefore, be classified as an 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.

Sweeping Service that the Applicant supplies to the Housing Directorate of the Government of West Bengal, cannot be classified as an 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. The exemption under Sl No. 3 or 3A, as the case may be, of Notification No 12/2017-CT (Rate) dated 28.06.2017 and WB Govt Gazette Notification-1136-FT dated 28.06.2017 is not, therefore, applicable to such supplies. So such service shall be taxable under GST.

In Advance Ruling of NIS Management Ltd. By WEST BENGAL AUTHORITY FOR ADVANCE RULING GOODS AND SERVICES TAX.