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2018 (10) TMI 1869 - AAR - GSTSupply of tax free goods - requirement of registration - liability of tax under RCM u/s 9(3) of CGST Act,2017 for transportation services for transporting tax free goods - requirement of registration for interstate supply/sales of tax free goods - Whether GST registration can be surrendered if we are not liable to pay RCM us 9(3) of CGST Act 2017 and not liable to be registered under GST Act? Whether registration is required in case of supply of tax free goods under GST Act? - HELD THAT:- As per Section 23 (1) (a) of CGST Act, 2017, any person engaged exclusively in the business of supplying goods or services or both that are not liable to tax or wholly exempt from tax under this Act or under the Integrated Goods and Service Tax Act shall not be liable to registration subjected to requirement in other section of the Act - Therefore, when the person is engaged in supply of exempted goods or services or both, which are not liable to be taxed, then such person shall not be liable to be registered under Act. Whether assessee is liable to pay tax under RCM U/S 9(3) of the CGST Act, 2017 for transporting tax free goods? - HELD THAT:- Agriculture produce has been defined under Para 2 (d) of Notification No.12/2017-Central Tax (Rate) dt.28.06.17, as any produce out of cultivation of plants and rearing of all life forms of animals, except the rearing of horses, for food, fibre, fuel, raw material or other similar products, on which either no further processing is done or such processing is done as is usually done by a cultivator or producer which does not alter its essential characteristics but makes it marketable for primary market - As regards the goods supplied by the applicant, the same are seeds which are covered under chapter heading 1209 of the first schedule to the Customs Tariff Act, 1975. As per the list of activities undertaken by the applicant, the harvested raw seeds are dispatched to the processing unit with the Production advice to Gurgaon or Bangalore as per requirement, where the seeds are processed with machines, quality checks are done thereafter the seeds are chemically treated and packed. Such chemically processed and treated seeds can no more be regarded as agriculture produce in terms of Para 2 (d) of the Notification No.12/2017- Central Tax (Rate) dt.28.06.17 - therefore, the applicant is required to pay GST under reverse charge mechanism in case of transportation services received for transporting the aforesaid goods from a Goods Transport Agency (GTA) - registration not required under GST Act. Whether registration is required under GST Act, 2017 for interstate supply/sales of tax free goods? - HELD THAT:- Section 23 of CGST Act, 2017 provides that any person engaged exclusively in the business of supplying goods or services or both that are not liable to tax or wholly exempt from tax under this Act or under the Integrated Goods and Services Tax Act shall not be liable to registration. Therefore, in case the applicant is engaged exclusively in supply of exempted goods [and also not receiving any taxable services liable to RCM under GST provisions], registration is not required under the CGST Act, 2017. Whether GST registration can be surrendered if we are not liable to pay RCM us 9(3) of CGST Act 2017 and not liable to be registered under GST Act? - HELD THAT:- The applicant is liable to pay GST under RCM, in terms of Section 9(3) of the CGST Act, 2017, they are liable to registered under the CGST Act, 2017.
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