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TMI Blog2019 (2) TMI 1741X X X X Extracts X X X X X X X X Extracts X X X X ..... Indian Potash Limited., (hereinafter referred to as applicant), registered under the Goods & Services Tax. 2. The provisions of the CGST Act and APGST 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 APGST Act. Further, henceforth, for the purposes of this Advance Ruling, a reference to such a similar provision under the CGST or AP GST Act would be mentioned as being under the GST Act. 3. Brief Facts of the case: M/s Indian Potash Limited (hereinafter referred to as "IPL", or "Company" or "Applicant" as required by the context) holding Goods and Services Tax ('GST') Reg ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n shipping company to provide the service of transportation of goods in a vessel from the supplier's country to the Indian Port. * Under GST, values of subsidy is excluded from the value of taxable supply. Exclusion of subsidy from the value of taxable supply, results in accumulation of Input tax credit under GST. In addition, payment of GST under reverse charge mechanism on ocean freight is also contributing to accumulation of credit. The applicant had filed an application in form GST ARA-01, Dt:05.12.2018, by paying required amount of fee for seeking Advance Ruling. On Verification of basic information of the applicant, it is observed that the applicant falls under State jurisdiction, i.e. Assistant Commissioner, SGST Gajuwaka Cir ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... present the applicant appeared for personal hearing on 01.02.2019 and they reiterated the submission already made in the application. 6. DISCUSSION AND FINDINGS: We have examined the issues raised in the application. Advance Ruling under GST means a decision provided by the authority or the appellate authority to an applicant on matters or on questions specified in sub-section (2) of Section 97 or sub-section (1) of Section 100 in relation to the supply of goods or services or both being undertaken or proposed to be undertaken by the applicant. As per the said sub-section (2) of Section 97 of the CGST Act, Advance Ruling can be sought by an applicant in respect of:- (a) Classification of any goods or services or both, (b) Applicabili ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or not As per sub-section 3 to Section 5 of IGST Act read with sub-section 1 of Section 5 of IGST Act, on inter-state supply of goods or services, by way of notification the Government may notify specific category of services where the recipient of service will be considered as the person liable to pay tax. The term recipient is defined in sub-section 93 of Section 2 of CGST Act as below: "recipient" of supply of goods or services or both, means,- (a) where a consideration is payable for the supply of goods or services or both, the person who is liable to pay that consideration; (b) where no consideration is payable for the supply of goods, the person to whom the goods are delivered or made available, or to whom possession or use of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s by a vessel from a place outside India up to the customs station of clearance in India. A person located in non-taxable territory Importer, as defined in clause (26) of section 2 of the Customs Act, 1962(52 of 1962), located in the taxable territory. Notification No. 8/2017-Integrated Tax (Rate), dated 28-6-2017 SI.No. Chapter, Section or Heading Description of Service Rate (percent.) Condition 9 Heading 9965 (Goods transport services) (i)*** *** *** (ii) Transport of goods in a vessel including services provided or agreed to be provided by a person located in non-taxable territory to a person located in non-taxable territory by way of transportation of goods by a vessel from a place outside India up to the c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ansportation of goods in a vessel from a non-taxable territory to taxable territory amounts to import of service and such ocean freight is leviable to IGST as an inter-state supply of service and the Applicant, being the importer, are liable to pay IGST under reverse charge mechanism prescribed vide Notification No. 10/2017 -Integrated tax (Rate) dated 28.06.2017, by following the valuation as per Notification No.8/2017-Integrated Tax (Rate), dated 28-6-2017, irrespective of valuation adopted for the import of goods i.e. FOB or CIF.
The issues raised on double taxation, subsidies and cascading effect leading to accumulation of credit fall beyond the purview of Section 97 of CGST / APGST Act,2017. X X X X Extracts X X X X X X X X Extracts X X X X
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