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2018 (11) TMI 487 - AAR - GSTLiability of GST - Supply of goods and/or services - e-procurement Transaction Fee collected on behalf of IT E&C department results - Exemption from GST Held that:- As per the information filed by the applicant, it is observed that the applicant is acting as fund-manager. The applicant was directed by ITE&C Department, to open an account for collection of Transaction Fee relating to e-Procurement platform. Further, the applicant can not act independently for the utilization of funds without the approval of the ITE &C Department. Hence, the fund utilization, shall be in accordance & with the permission and approval of the ITE&C department only. The applicant will be paid service charges @ 5% on e-procurement corpus fund and e-procurement Transaction Fee towards services rendered by the applicant, for which they are paying tax as an independent entity for the services rendered to ITE&C. Hence, the transaction fee collected on account of ITE&C Department, as custodian will not attract the liability under the provisions of law. Ruling:- It is “Supply” as defined in SGST Act,2017 and CGST Act, 2017. The liability does not arise due to the amounts so collected is for services rendered by State Government i.e., ITE&C Department as per the entry no 6 of notification 12/2017-Central tax (Rate), dated :28th June 2017.
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