Supply of Fresh Waste Processing Machinery to Local Municipality Attracts 18%: AAR

The applicant, M/s Vishalsinh Mahendrasinh Atodariya, provides door-to-door garbage collection in various localities. The applicant secured a bid to supply Fresh Waste Processing Machinery to Anand Municipality. After he was allotted the tender, machinery was installed by the applicant, and after the installation of the machinery, the applicant showed the invoices charging GST on the supply of machinery to the Nagarpalika. The Nagarpalika asked the applicant to seek an advance ruling on whether the GST is chargeable on the supply made to the local authority.

Therefore, the applicant filed an application before the Gujarat Authority for Advance Ruling (AAR):

The applicant has sought a ruling on the following questions: –
“(i) Whether supply of goods to Anand Municipality Corporation (Local Authority of Anand City) attracts GST or it is exempt?

(ii) If GST is applicable on the supply of goods to Anand Municipality Corporation, then what will be the rate of GST applicable on the following items?

”

As per the Gujarat AAR, the supply of goods to Anand Municipality Corporation is subject to GST, and the applicable GST rate is 18% for the impugned supply of goods.