AAR: GST Classification and Exemption for Municipal Waste Reclamation Services under Swachh Bharat Mission 2.0

M/S Gorantla Geosynthetics Limited has filed an application dated September 29, 2025, in Form GST ARA-01, seeking the Authority for Advance Ruling (AAR), Goods and Services Tax (GST), Tamil Nadu. The applicant is located at No. 3, First Floor, Saraswathi Street, Mahalingapuram, Kodambakkam, Chennai 600 034.

The applicant is engaged in providing services of the Municipal Solid Waste Management Solutions. They are executing a project under the Government of India’s Swachh Bharat Mission (Urban) 2.0 for “Reclamation of Existing Dump Yard located at Compost Yard by Removing the Legacy Waste in Ariyalur Municipality”.

Presently, they are managing a total of 16,055 m³ of legacy waste, under which excavation, screening, shredding, and scientific disposal in adherence with the Solid Waste Management Rules from 2016 and CPCB Guidelines from 2019 are included. To execute this project, the applicant has set up machinery like trommel screens for the separation of waste and excavators and JCBs for excavation, loading, and site operations, and also tippers and trucks for the purpose of the transportation of this separated waste.

Questions Asked by AAR Tamil Nadu:

The following are the questions asked by the applicant seeking the AAR Tamil Nadu:

“Question 1: Classification of the services provided by the applicant.

Question 2: Whether services provided by the applicant are exempted under S1. No. 3 of Notification No. 12/2017 dated 28.06.2017 as amended?

Question 3: Whether the service recipient, i.e., M/s Ariyalur Municipality, is a “Governmental Authority” as per the definition of Notification No. 12/2017, Central Tax, dated 28.06.2017?

Answers Given by AAR Tamil Nadu:

The following are the answers given by the AAR Tamil Nadu to the questions asked by the applicant:

Answer 1: The service provided by the applicant is liable to be classified under SAC 9994, attracting GST at 18% (9% CGST + 9% SGST, or 18% IGST).

Answer 2: The services provided by the applicant to M/s Ariyalur Municipality are entitled to exemption under S1. No. 3 of Notification No. 12/2017 dated 28.06.2017 as amended.

Answer 3: The authority denies giving any ruling on this question, since the question asked by the applicant does not fall under the ambit of Section 97(2) of the CGST/TNGST Act, 2017.