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2022 (1) TMI 1110 - AAR - GSTLevy of GST - Tapping/ extraction of Lisa/Resin from reserved forest, van panchayat and civil forest by the selected bidder/contractor - Tapping/ extraction of Lisa/Resin from private (Naap) land on the basis of permit issued by the applicant - liability of GST on the department or the bidder? - applicable rate of GST - classification of HSN/SAC code for such activity - point/time of supply - amount on which GST to be paid - taxable amount will include all charges i.e. loading, unloading, tapping & transportation charges or not - dedeuction of GST TDS by the department from the payment made to bidder - every contractor should be registered under GST working with the department for any types of activities or not - condition for deduction of GST TDS, if bidder has a contract less than 10 Lakh or unregistered person?. HELD THAT:- Tapping/ extraction of Lisa/Resin and its transportation to Motor Road Depot (Godown) is a composite supply and, hence applicable GST for composite supply is payable by the contractor. Tax rate of the principle supply will apply on the entire supply, since extracted goods i.e. Lisa/Resin is the principal supply and the transportation' of the same to the Motor Head Depot is another supply and the transportation cannot be done separately, if there are no goods - since the consideration to be paid to the contractor is decided before the performance of said supply of services it is assumed that all the expenses incidental to said supply of composite supply is part of such consideration. Rate of tax - HELD THAT:- Tax rate of the principle supply will apply on the entire supply, since extracted goods i.e. Lisa/ Resin is the principal supply and the transportation of the same to the Motor Head Depot is another supply and the transportation cannot be done separately, if there are no goods. We further find that once the Lisa/ Resin is deposited at the motor head depot (godown), total control and supervision is under the applicant i.e. the ownership of the goods is with the applicant, all the expenses incurred till such deposit, becomes part of taxable value of such composite supply - applicable GST is payable by the contractor / individual permit holder at the time of supply. For transportation of Lisa/Resin (which is under total control and supervision of the applicant) from Motor Head Depot (Godown) to Rail Head Depot (Kathgodam), a service provider is selected through a separate tender process. This is another service provided by the transporter to the applicant and applicable GST has to be paid by the service provider. Time of Supply - HELD THAT:- Sections 12, 13 & 14 of the CGST Act, 2017, deals with the provisions related to time of supply and as per section 31 of the CGST Act, an invoice for supply of goods needs to be issued before or at the time of removal of goods for supply to the recipient, where the supply involves movement of goods. However, in other cases, an invoice needs to be issued before or at the time of delivery of goods or while making goods available to the recipient. Hence time of supply in case of goods, will be earliest of the following dates,
Deduction of TDS GST - HELD THAT:- As per section 51 of the CGST Act, 2017, a department or establishment of the Central Government or State Government, local authority, Governmental agencies and such persons or category of persons as may be notified by the Government on the recommendations of the Council, tax has to be deducted @ 2% of the payment made to the supplier of taxable goods or services or both, where the total value of such supply, under a contract, exceeds two lakh and fifty thousand rupees (excluding the amount of central tax, State tax, Union territory tax, integrated tax and cess indicated in the invoice), hence TDS as applicable under the provisions of law has to be deducted by the applicant being a Government body while making payments for the supply of goods as well as services. Liability to pay GST - HELD THAT:- The liability to pay applicable GST at the time of final sale (after open auction) of Lisa/Resin lies with the applicant and all the expenses incurred from tapping/extraction to final sale including all incidental expenses namely loading unloading, transportation etc. form the part of taxable value.
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