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TMI Blog2018 (11) TMI 1264X X X X Extracts X X X X X X X X Extracts X X X X ..... nd Floor, Girnar Colony, Gandhi Path, Vaishali Nagar, Jaipur- 302021 {hereinafter the applicant} is fit to pronounce advance ruling as it falls under the ambit of the Section 97 (2) (a) (b),(d),(e) and (g), given as under: a. Classification of any goods or services or both; b. Applicability of a notification issued under the provisions of this Act; d. Admissibility of input tax credit of tax paid or deemed to have been paid; e. Determination of the liability to pay tax on any goods or services or both; g. Whether any particular thing done by the applicant with respect to any goods or services or both amounts to or results in a supply of goods or services or both, within the meaning of that term. Further, the applicant being a register ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s. Goods are directly supplied by Principal to the customers at the price declared by the principal from time to time by charging applicable GST on the invoice. On the due date, the customer pays to principal directly for the material supplied to them. In case of any delay in payment from the customer, principal charges interest along with GST from customer. 1.5 Further, as per the pricing policy of Principal, customers can avail dispatches either on cash or credit (10 days) basis. Wherever the payment is directly made by the customer before due date (before 10 days credit period), early Payment Incentive is given to the customer as per the pricing policy of Principal. 1.6 In case of any delay in supply or any quality issue, it is princip ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... applicable w.e.f. 01.07.2017, as amended from time to time and corresponding Raj. GST Notification issued by Government of Rajasthan or any other notifications/ rules under GST law? 4. If GST is charged by the customer on invoice for such transaction, Whether the dealer/DCA can take credit of the ITC of the GST charged on such supply considering the fact that dealer has outward supply as(i) Commission Agent Service on which GST is paid @ 18% (ii) the Finance in terms of Loan and advance on which interest income arises which is exempt under CGST Notification No. 12/2017 Central Tax (Rate) dated 28th June 2017, applicable w.e.f. 01.07.2017, as amended from time to time and corresponding Raj. GST Notification issued by Government of Rajastha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... A which is demanded by the customer from the DCA. It appears that discount offered towards early payment is not a new supply but is part of the original supply between Principal and Customer. From the above position it appears that the said reimbursement is not covered under the definition of Supply. A similar view has also been taken by the Gujarat Authority for Advance Ruling Goods and Service Tax enclosed with the application for Advance Ruling submitted by the applicant. 4. Findings, Analysis and Conclusion: 4.1 We have gone through the contents of the application filed by the applicant, submission made at the time of personal hearing and comments of the jurisdictional officer and find that the applicant and Reliance Industries Ltd. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r as per rate allowed by the principal. The applicant has sought clarification whether such passing on the bonus is in the nature of any supply. 4.4 To clarify the situation, the applicant was asked at the time of personal hearing to submit the DCA- customer agreement also. The applicant vide their letter dated 10.10.2018 submitted that there is no separate agreement with customer in relation to supply of goods or services from the RIL. 4.5 We are of the view that the transaction made between DCA and the Customer for passing on the specified bonus given by the principal is nothing but an additional discount given for early payment made by the customer. In this case there is only one supply made by the principal to the customer. The additi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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