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TMI Blog2019 (8) TMI 1213X X X X Extracts X X X X X X X X Extracts X X X X ..... ct GST? 2.2. The Applicant M/s. Rajkot Nagarik Sahakari Bank Ltd, vide attached sheet to their application dated 08.01.2018, has submitted the Statement of Facts which is as follows: I. The applicant is multi-state Schedule Co-operative Bank registered with the department of Goods and Service Tax and is also holder of Registration certificate bearing No. 24AAAAR2912F1Z0. II. The applicant is providing various services under the category of Financial and Related Services classifiable under SAC 997112, 997113, 997119, 997139, 997159 & 997161 and is accordingly discharging its liability. III. The applicant is providing various services to respective account holders which were chargeable to Service Tax under the erstwhile provisions of Service Tax Act and now under the provisions of Goods and Service Tax Act, 2017. IV. The applicant Rajkot Nagarik Sahakari Bank Limited (here in after referred to as RNSB), among other services is also providing service for operation of Demate account to various account holder as well as to the persons who intends to operate only their Demate account. V. The applicant RNSB is running three schemes for the Demat account holder namely Basic Serv ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... annexed as Annexure "B" of the application. d. From the copy of clarifications this Honorable Bench would be pleased to see that the Honorable Government has clarified beyond doubt that for considering any supply as taxable the criteria prescribed are to be fulfilled and one of such criteria is that the supply should be supported by consideration. It is also clarified by the Honorable Government that only the supplies, without consideration, specified in Schedule I to the CGST Act/ SGCT Act comes within the scope of supply and are accordingly chargeable to tax. Admittedly the transactions under consideration are not covered by Schedule I and hence cannot be treated as supply under the provisions of Goods and Service Tax Act and consequently GST is not applicable and such transactions are not liable to GST. e. For the sake of ready reference relevant provisions are re-produced here under. 2.4 Section 7 of Central Goods & Service Tax Act, 2017, "Scope of supply" (1) For the purposes of this Act, the expression "Supply" includes (a) All forms of supply of Goods or Services or both such as sale, transfer, after, exchange, licence, rental, lease or disposal made or agreed t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pply of Goods or Services where the consideration is not wholly in money, the value of supply shale, - (a) .... (b) .... (c) If the value of supply is not determinable under clause (a) or clause (b), value of supply of Goods or services or both of like kind and quality; (d) ....." Explanation: For the purpose of the provisions of this chapter, the expressions. (a) ..... (b) "Supply of goods or services for both of like kind and quality" any other goods or services or both made under similar circumstances that, in respect of the characteristics, quality, quantity, functional components, materials and the reputation of the goods or services or both first mentioned, is the same as, or closely or substantially resembles, that supply of goods or services or both. The applicant is of the view that the none of the Scheme is under similar circumstances, in respect of characteristics, quality, quantity etc. and cannot be treated as the same or closely or substantially resembles to each other, and hence the provisions of the Rule 27 of the Central Goods and Service Tax Rules 2017, would not be applicable. Since the all the schemes are operative individually and are optional ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of GST have been adopted from erstwhile Service Tax Acts and Rules and as the said services were chargeable to Service Tax under the erstwhile provisions of Service Tax era, GST related provisions being pari materia, it is aptly applicable on such services/activities. 4. We have gone through the submission of the Applicant and also the comments given by the jurisdictional CGST Commissionerate. 4.1 Now we take the queries one by one for discussion. The first query is: In the facts and circumstances of the case whether Refundable Interest Free Deposit received could be treated as Supply under the provisions of Goods and Services Tax Act, 2017? and chargeable to tax in the hands of the applicant? The query is a bit confusing. Refundable Interest Free deposit received cannot be treated as supply. It appears that the applicant wants to know whether services provided by the applicant against the Refundable Interest Free Deposit could be treated as supply and chargeable to tax. The moot question to be decided is whether refundable interest free deposit can be considered as "Consideration" for the services provided by RNSB to their demat account holders. The definition of Consider ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the case whether the amount of Rs. 2500/- being Refundable interest free deposit, which allows depositor some benefits, would attract GST? Proviso to Section 2(31) of CGST & GGST Act, 2017 reads as below Provided that a deposit given in respect of the supply of goods or services or both shall not be considered as payment made for such supply unless the supplier applies such deposit as consideration for the said supply;" It appears that the amount of Rs. 2500/- will not attract the GST being the deposit Unless the supplier applies such deposit as consideration. However the monetary value of the act of providing this deposit of Rs. 2500/- will attract GST. 4.3 Now we take the third query which is as below: In the facts and circumstances of the case, whether first 10 free transactions subject to maximum of rupees 5 Lakh allowed to the Demat account holder depositing Refundable interest free deposit would attract GST? It appears from the above that the first 10 free transaction allowed to the demat account holders are in the nature of discount and will not attract GST subject to the fulfillment of the conditions prescribed under Section 15(3) of the CGST & GGST Act which is rep ..... X X X X Extracts X X X X X X X X Extracts X X X X
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