GST exempt supply don’t attract TDS

Dolphin Techno Waste Management Private Ltd

The Applicant is stated to be providing solid waste management service to the Conservancy Department of the Howrah Municipal Corporation (HMC) and sewer cleansing service to the Sewerage and Drainage Department of HMC.

The HMC is deducting TDS while paying consideration for the above supply in terms of Notification No. 50/2018 Central Tax dated 13/09/2018 (corresponding State Notification No. 1344 FT dated 13/09/2018) and State Government Order No. 6284 F(Y) dated 28/09/2018 (TDS Notifications).

The Applicant seeks a ruling on whether the above supply is exempted in terms of S.No.3 or 3A of Notification No. 12/2017 Central Tax (Rate) dated 28/06/2017(corresponding State Notification No. 1136 FT dated 28/06/2017), as amended from time to time (Exemption Notification) and whether the notifications regarding TDS are applicable in his case.

The AAR ruled that,”The Applicant’s supply to the Howrah Municipal Corporation is exempt from the payment of GST under S.No. 3 of Notification No. 12/2017 Central Tax (Rate) dated 28/06/2017 (corresponding State Notification No. 1136 FT dated 28/06/2017), as amended from time to time.

As the Applicant is making an exempt supply and the provisions of section 51 and Notification No. 50/2018 Central Tax dated 13/09/2018 (corresponding State Notification No. 1344 FT dated 13/09/2018) and State Government Order No. 6284 F(Y) dated 28/09/2018, to the extent they mandate and deal with the mechanism of TDS, do not apply to his supply”.

 

The details of the can be read here :Case file

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