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TMI Blog2019 (11) TMI 532X X X X Extracts X X X X X X X X Extracts X X X X ..... o referred to CGST Act and SGST Act respectively) by M/s Madhya Pradesh Power Generating Company Limited (hereinafter referred to as the Applicant), registered under the Goods & Services Tax. 2. The provisions of the CGST Act and MPGST Act are identical, except for certain provisions. Therefore, unless a specific mention of the dissimilar provision is made, a reference to the CGST Act would also mean a reference to the same provision under the MPGST Act. Further, henceforth, for the purposes of this Advance Ruling, a reference to such a similar provision under the CGST or MP GST Act would be mentioned as being under the GST Act. 3. BRIEF FACTS OF THE CASE: 3.1 Madhya Pradesh Power Generating Co. Ltd. (MPPGCL) is a wholly owned company of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 02(E), dated January 02.2014, Ministry of Environment and Forests had amended Environment (Protection) Rules 1986 which stated that the stand-alone thermal power plant (of any capacity), or a captive thermal power plant of installed capacity of 100 MW or above, located beyond 500 kilometres from the pit-head shall be supplied with, and shall use, raw or blended or beneficiated coal with ash content not exceeding thirty-four per cent, on quarterly average basis. 3.6 So in order to comply with such guidelines if the coal is transported for more than 500 kms then the coal is to be washed (i.e. process of coal beneficiation) to reduce ash content below 34%. 4. QUESTIONS RAISED BEFORE THE AUTHORITHY:- The following questions have been posted ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oad Transport of RoM Coal from coal mines to coal washery plant of the contactor. 6.4.2 Beneficiation (Washing) of RoM coal to reduce ash content at their washeries. 6.4.3 Transportation of Washed Coal from their coal washeries to Railway Sidings. 6.4.4 Loading of washed coal into Railway rake for dispatch to the destination thermal power plants located in MP State. 6.5 The company while floating a new tender for the same works is inviting price bids with GST components in the following manner: 6.5.1 GST on Transportation Services by road by a Goods Transport Agency of RoM and Washed Coal @5% on RCM basis. 6.5.2 GST on Beneficiation Services and Loading charges @18% to be paid to government by supplier. 6.6 Scope of Supply: Section 7 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ces of Transportation and Services of Washing Coal. 6.11 The tender document specifically mentions that separate prices are to be quoted for each services. So, the supply does not fall under the ambit of Mixed Supply. 6.12 Now, the issue arises whether the supply can be called composite supply. For a supply of two or more taxable services to be called as composite supply there should be a predominant element of supply. In the given case neither of the two services can be said to be predominant as both the services are equally important for MPPGCL. The tender is issued for. procuring both the services simultaneously. 6.13 So, we are left with only one definition that is supply and as individual rates of both the supplies are already notif ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd is chargeable at the rate of 18% GST. Transportation services fall under the SAC 9965 and is chargeable to tax @12% but if supplier does not avail Input tax credit the GST Rate would be 5%. Thus, the answer to Q-l sought by the applicant is affirmative. 7.6 Since the answer to question no. 1 is affirmative there is no need to answer question no. 2. Hence our order is restricted to the first question itself. 7.7 In view of the discussions foregoing, we find that as the tender document covered in the application is concerned, the GST will be applicable @18% for coal beneficiation under SAC9997 and transportation services will fall under SAC 9965. RULING (Under section 98 of Central Goods and Services Tax Act, 2017 and the Madhya Prades ..... X X X X Extracts X X X X X X X X Extracts X X X X
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