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2020 (7) TMI 805 - APPELLATE AUTHORITY FOR ADVANCE RULING, CHHATTISGARHExemption from GST - entity registered under section 12-AA of Income Tax Act, 1961 - services provided by CREDA, scrap battery sale and sale of tender forms - applicability of GST Notification No. 12/2017-Central Tax (Rate) dated 28-06-2017 - HELD THAT:- Section 12A (a) read with Section 12AA (1) (b) does not confirm any right of exemption upon the appellant under Section 11, 12 and 13 of the Income Tax, 1961. Such exemption from taxation will be available only after the Assessing Officer is satisfied about the genuineness of the activities promised or claimed to be carried on in each financial year relevant to the assessment year and at the provision of law acted upon - The exemption under Section 12A / 12AA of the Income Tax Act, 1961 does not cover all incomes or activities of the appellant. The exemption under said provisions are admissible based on the nature of activity and source of such incomes. Hence, exemption under CGST Act, 2017 on income is admissible only if the same is towards any charitable activity. In the instant case, CREDA implements various schemes relating to solar energy, wind energy, mini micro hydel, biomass, biogas and solid waste management. Some of the major activities include sour sujla yojna, solar drinking water pumping scheme, saubhagya yojna, solar community irrigation scheme, solar high mast, saur shakti yojna, solar on grid and roof top scheme, solar cold storage scheme, solar highmast, solar water purification, solar electrification of Government Buildings, solar water heating systems, National biogas and manure management programme, solar rural electrication/majaratola scheme, energy conservation programme, energy education park etc. The above schemes are funded by the grants received from the Central Government and State Government. CREDA creates empanelment of systems integrators, vendors and contractors to work as channel partner for implementing various solar photovoltaic/solar thermal applications in market mode in the state. The system integrator shall be the agency for integration and installation of Solar PV/Solar Thermal Systems - The contactors means civil and electrical contractors to be engaged for carrying out various small construction and repair civil works and works of laying of power distribution network at various sites as per requirement of CREDA. For the schemes funded by the grants received from the Central Government and State Government CREDA, the appellant creates empanelment of systems integrators, vendors and contractors to work as channel partner for implementing various solar photovoltaic/solar thermal applications in market mode in the state of C.G and further the aforesaid activities are being undertaken by the integrators, vendors, contractors. Further for implementation of these schemes, the appellant receives consideration for the allied services rendered by them from their clients / channel partners, in the form of Registration Fees, Supervision / Service Charges, Processing Fees, RVE CONNECTION Charges, Processing Fees (Sour-Sujila), Entry Fees to Energy Park, Penalty Charges Received and RE issuance Charges. This apart they also receive consideration for activities such as Scrap battery sale and from sale of tender forms. Thus the said activities of CREDA the appellant, per se cannot be merely or primarily for the preservation of environment so as to qualify being considered under clause (r) of para 2 of the said Notification No. 12/2017- Central Tax (Rate) dated 28.06.2017. The aforesaid activities of the appellant cannot he treated as charitable activities as envisaged under the statute, as the above mentioned fees/ charges are being collected from the channel partners/ contractors/consumers as a consideration for tender work/supply of services, provided to them - the said supplies being not covered under the definition of charitable activities as envisaged, the impugned services / supply of goods rendered by the appellant are not covered under Sr.no. I of Notification No. 12/2017 - Central Tax (Rate) dated 28.06.2017
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