GST Exemption provided to Bengaluru’s Solid Waste Management Company

The Bengaluru Solid Waste Management Limited (BSWML), a business established by the state government to ensure appropriate SWM, has been exempted from paying the state government’s 18% GST.

This exemption decision was made at the 52nd GST council meeting, which was place on October 7 in New Delhi. Union Finance and Corporate Affairs Minister Nirmala Sitharaman presided over the meeting. A recommendation was presented at the conference to exempt water supply, public health, sanitation, conservancy, solid waste management, and slum improvement and upgradation services provided to governmental bodies. The Council approved the recommendation.

Shikha C, the Commissioner for Commercial Taxes (Karnataka), added that pure public service groups are exempt. In response to a question on the change in the state payment to the GST, she stated that it is a state fund, and the decision has been made to exempt government bodies.

According to a senior official from the Bruhat Bengaluru Mahanagara Palike (BBMP), SWM, the 18% exemption is a commendable measure. He stated that this matter was previously brought before the council but has now been authorised. With this, the payment to contractors will be enhanced as well.

According to the official, the next stage would be to strengthen the company’s contractual services for the BBMP and to bring in more professionalism. “We are also awaiting the final court decision in order to begin collecting user fees from citizens for SWM.” Bengaluru is the only major city that does not collect taxes. It’s gathered in Delhi, Mumbai, and Indore.

The sum ranges between Rs. 2 per day and Rs. 100 per month. There will be accountability in trash management, including waste collection and processing. Pourakarmikas, contractors, and the BBMP will also be held accountable to ensure adequate trash management. This will also assist Bengaluru’s Swachh Bharat rating, according to the official.