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Order dated 24/09/2019

Issue: The applicability of GST under Notification no. 29/2018-Central Tax (Rate), dated 31-12-2018 on service provider providing security services to the university registered as a Tax Deductor.

Crux: The applicant being only registered as a Tax deductor under Section 51 of the CGST and CGGST Act and not having any another GSTIN as supplier of goods or services till 24-6-2019 would not be liable for under reverse charge, in view of the exclusions as stipulated under the proviso to Notification no. 29/2018-Central Tax (Rate), dated 31-12-2018. The liability to GST payment in such case would be with the service provider under Forward charge. However with effect from 25-6-2019, the applicant having been registered as a regular dealer and normal taxpayer would be liable to tax under Reverse charge being the recipient of supply of Goods or Services or both under' sub-section (3) or sub-section (4) of Section 9, or under sub-section (3) or sub-section (4) of Section 5 of the Integrated Goods and Services Tax Act

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Order dated 30/08/2019

Issue: (i) Whether the sale / booking of units in a project after its first occupation and receipt of advance against that booking is classifiable under Para 5 of Schedule III to the CGST Act, 2017 as sale of building and thus neither regarded as Supply of goods nor supply of services? Thus whether the same is outside the purview of Goods and Services Tax?

(ii) Whether the booking of units in a project and consequently receipt of advance against that booking after first occupation of the project, where the project has been completed and promoter has applied for issuance of completion certificate, which is pending before local authority; is outside the purview of Goods and Services Tax?

Crux: (i) The date of issuance of completion certificate by the competent jurisdictional authority in the instant case shall be considered as the date of completion of the property and if the entire amount of consideration has been received after such date of completion, then that would not be treated as a taxable service. If any part of the consideration is received before such date, then the transaction would be treated as a supply of service as per clause 5 of Schedule II to the GST Act, attracting the levy of GST. The first occupation as claimed by the applicant in the instant case, without having the mandatory completion certificate by the jurisdictional authorities is found to be devoid of any merit.

(ii) The completion certificate for the said project of the applicant to be issued by the competent jurisdictional authority is pending owing to non-compliance of the legal provisions and for want of procedures by the applicant, as mandated under Section 301 of the Municipal Corporation Act, 1956 and Rule 98 of the Land Development Rules, 1984, as discussed above. Accordingly it is found that the date of issuance of completion certificate by the competent jurisdictional authority in the instant case shall be considered as the date of completion Of the property and if the entire amount of consideration has been received after such date of completion, then that would not be treated as a taxable service. If any part of the consideration is received before such date, then the transaction would be treated as a supply of service as per clause 5 of Schedule II to the GST Act, attracting the levy of GST. The first occupation as claimed by the applicant in the instant case, without having the mandatory completion certificate by the jurisdictional authorities is found to be devoid of any merit.

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Shri Kamal Kishor Agrawal  v/s Shri Rajesh Kumar Singh and Smt. Kalpana Tiwari Joint Commissioner C/o Commissioner, State Tax Chhattisgarh

Order dated 02/03/2019

Issue: 1. Whether the activity of providing the hostel on rent to various boarder is exempted? If it is exempted in such case, under which exemption notification the same is exempted.
2. Whether the activity of providing the hostel on rent to various boarder is taxable? If it is taxable, in such case, under which service access code the same is taxable?

Crux: The activity of providing accommodation services by the applicant in their hostel for which the applicant is collecting an amount below the threshold limit of Rs. 1000/- per day and no other charges are being collected for providing other allied facilities / services therein viz. canteen food, parking space for vehicles, coaching, library, entertainment etc. merits exemption as stipulated under Notification No. 12/2017(Rate) Dated 28.06.2017 under Serial No. 14, Chapter 9963. This amount received for such supply by the applicant falling under tariff heading 9963 qualifies being treated as nil rate tax exempted supply.

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Order dated 26/03/2019

Issue: Do we need to charge GST on freight amount excluding diesel cost or on total amount which is inclusive of diesel cost?

Crux: Applicant are required to charge GST upon M/s Shree Raipur Cement on the total amount including the cost of diesel i.e. on the total freight amount inclusive of the cost of diesel so provided by the service recipient.

Order

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Issue: Whether the hostel which is providing the residence to students is required to charge GST.

Crux: The activity of providing accommodation services by the applicant in their hostel for which the applicant is collecting an amount below the threshold limit of Rs. 1000/- per day and no other charges are being collected for providing other allied facilities / services therein viz, canteen food, parking space for vehicles, coaching, library, entertainment etc. merits exemption as stipulated under Notification No. 12/2017-State Tax (Rate)No. F-10-43120t7/CT/V(80), Naya Raipur, Dated 28.06.2017 under Serial No. 14, Chapter 9963. This amount received for such supply by the applicant falling under tariff heading 9963 qualifies being treated as nil rate tax exempted supply.

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Order dated 22/02/2019

Issue: 1. Whether royalty paid in respect of mining lease can be classified under "Licensing for the right to use minerals including its exploration and evaluation falling under the heading 9973 attracting GST at the same rate of tax as applicable on supply of like goods involving transfer of title in goods",

2. Determination of the liability to pay tax on contributions made to District Mineral Foundation (DMF) and National Mineral Exploration trust (NMET) as per MMDR Act, 1957.

Crux:  1. The royalty paid by M/s NMDC in respect of mining lease is classifiable under sub heading 997337 ; ‘Licensing services for the right to use minerals including its exploration and evaluation’ (covered under entry no. 17 of Notification No. 11/2017 (Rate), dated 28.06.2017, attracting GST at the same rate as applicable for the supply of like goods involving transfer of title in goods, under reverse charge basis.

2. The contributions made to District Mineral Foundation (DMF) and National Mineral Exploration Trust (NMET), by M/s NMDC as per MMDR Act, 1957 are liable to GST, under reverse charge basis.

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Section 2 of CGST

Order dated 24/12/2018

Issue:
1. Whether the books which the CHHATTISGARH TEXT BOOK CORPORATION is supplying as per instruction of School Education Department CG (Loksikshan Sanchnalay) after printing the Syllabus decided by the SCERT would tantamount to supply of goods or supply of Service and fall under HSN Code 4901 zero rated goods.

2. Whether the books which the CHHATTISGARH TEXT BOOK CORPORATION is supplying as per instruction of School Education Department (Loksikshan Sanchnalay) after printing the Syllabus decided by the SCERT would tantamount to supply of service and will fall under Services Accounting Code 9989 accordingly amenable to tax @12%'

3. Whether the books which the CHHATTISGARH TEXT BOOK CORPORATION is supplying as per instruction of various agencies of school Education Department CG such as Rajiv Gandhi Siksha Mission/SCERT/ office of District education officer etc. would tantamount to supply of goods and will fall under the zero rated goods.

4. Whether the books which the CHHATTISGARH TEXT BOOK CORPORATION is supplying as per instruction of various agencies of school Education Department CG such as Rajiv Gandhi Siksha Mission/ SCERT/office of District education officer etc. would tantamount to supply of service and will fall under Services Accounting Code 9989 accordingly amenable to tax @12%.

Crux:
Supply of specified printed Educational books by applicant as per the instructions of School Education Department CG [Loksikshan Sanchnalay] or as per instruction of various agencies of school Education Department CG such as Rajiv Gandhi Siksha Mission/SCERT/ office of District Education officer etc. consequent to printing of the Syllabus as decided by the SCERT, merits consideration as supply of printed books attracting zero rate, under Notification no. 2/2017-State Tax(Rate) No. F-10-43/2017CT/V/70, Dated 28-06-2017, under HSN Code 4901.

Order

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Section 2 of CGST

Order dated 05/12/2018

Issue: Applicable GST Rate on “supply of services to Solid waste management, Garbage Collection, Disposal, Water Supply, Cleaning of Colony” classified by the applicant as exempted supply as per Notification No. 12/2017 dated 28 June, 2017 as updated and amended time to time.

Crux: In terms of Notification No. 12/2017-State Tax (Rate) No. F-10-43/2017/ CT/V(80), Naya Raipur, Dated 28.06.2017, Serial No. 3, Chapter 99

(i) Supply of Services of Colony maintenance work to C.G. Housing Board Colony, Sector 29, Naya Raipur with regard to solid waste management, water supply operation, garbage collection door to door and disposal, cleaning of colony i.e. garden .street and op area, drainage system, sewerage, water tank (All UG Sump Overhead Tank), cleaning of common area in multistoried building etc. and all other related work pertaining to operation and maintenance will be treated as exempt supply as per notification No 12/2017-State Tax (Rate) No. F-10-43/2017/CT/V(80), Naya Raipur, Dated 28.06.2017, Serial No. 3, Chapter 99.

(ii) The aforesaid exemption is not available in case any transfer of property in goods involved therein or if the said service is provided to persons other than State Government, Central Government or a local Authority or a Governmental Authority.

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Order dated 05/09/2018

Issue: Levy of GST Rate applicable in case of “Neem Seed”, classified under HSN Code 1211, placed both under 0% GST Rate and 5% CST Rate, on the condition that “All goods of seed quality” are classifiable under 0% GST Rate, whereas “All goods other than Seed quality” shall be classified under 5% GST Rate.

Crux: In terms of Notification No. 1/2017-State Tax (Rate) No. F-10-43/2017/CT/V(69), Naya Raipur, Dated 28-6-2017, Serial No. 73, Chapter 1211 :

(i) Supply of neem seeds in frozen or dried form for the purpose as specified by the applicant and the said seeds being not of seed quality, supplied by the agro-division business of the applicant would merit being taxable at 2.5% SGST and 2.5% CGST.

(ii) Supply of neem seed powder for the intended purpose as specified by the applicant, supplied by the agro-division business of the applicant would be taxable at 2.5% SGST and 2.5% CGST.

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Order dated 19/07/2018

Issue: What is the rate of levy of CGST & SGST on the composite supply of work contract services provided to Chhattisgarh State Power Distribution Company Ltd. (CSPDCL) by the applicant.

Crux: In the light of Notification no. 11/2017-State Tax (Rate), dated 28-6-2017 read with amendment Notification no. 24/2017-State Tax (Rate), dated 23-9-2017 and as the nature of works contract services provided by the applicant to Chhattisgarh State Power Distribution Company Ltd. (CSPDCL) being predominantly for commercial use by CSPDCL, the said services provided by the applicant to CSPDCL, attracts CGST and SGST each @ 9% respectively.

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Order dated 14/06/2018

Issues:- Tax liability in the business of job work activity of custom milling of paddy involving milling activity, transportation of rice and usage charges of gunny bags.

Crux:- In case of custom milling of paddy for manufacturing of rice, along with custom milling they will also get the payment towards the transportation of paddy & Rice, usage of gunny begs for packing of Rice and incentives as an additional charge for custom milling. there being a single contract for all above supplies of goods & services it shall treated as composite supply as per the provision of section 8 (a) of Chhattisgarh GST Act 2017. Accordingly the tax liability on a composite supply shall be decided as supply of such principal supply under Notification no. 11/2017-CT (Rate) dated 28-06-2017 serial no. 26(c) i.e. 5%.

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Notification No. 12/2017 Central Tax (Rate)

Section 8 of CGST

Order dated 14/06/2018

Issues:-

a. Whether the applicant is required to charge IGST or CGST and SGST on the manpower supply services provided to M/s NTPC BHEL Power Projects Pvt Ltd. (NBPPL), Mannavaram in Andhra Pradesh.

b. Whether such transaction will be categorized as an intrastate or interstate transaction?

c. If the applicant charge IGST on such transaction, considering the transaction as interstate, will the IGST charged, be available as input tax credit to M/s NBPPL against their output tax liability subject to Section 17(5).

Crux:-

Determination of place of supply has been kept out of the purview of Authority for Advance Ruling (AAR) stipulated under the provisions of section 97(2) of the CGGST Act, 2017. Authority for Advance Ruling, Chhattisgarh is not the proper authority to pronounce the ruling regarding the availability of ITC to a firm which is registered and situated at a place outside the State of Chhattisgarh. Therefore Application is rejected being out of the purview of matters or questions specified in sub-section (2) of section 97 of CGGST Act, 2017 read with section 96, 103(1) (a) & 103 (1) (b) of CGGST Act, 2017.
 

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Section 97 of CGST

Order dated 06/06/2018

Issues:- Whether ITC can be claimed on packing material used for supply of seeds in packaged form to own branches or other purchasers?

Crux:-The Applicant is not entitled to ITC on packing material used for packaging seeds, while making such exempt supply of seeds to their own branches and to other purchasers. However, they are entitled to ITC on the exclusive taxable supply of such packing material made to their own branches in other states, in terms of section 17(2) of CGGST Act.

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Section 17 of CGST