TMI Blog2020 (10) TMI 812X X X X Extracts X X X X X X X X Extracts X X X X ..... e, 2017. Hence the supply of tur dal and green gram without any brand name by the applicant to NAFED is an exempted supply as per entry No.45 of the Notification No.2/2017- Central Tax(Rate) dated 28th June, 2017. Input tax credit - HELD THAT:- The applicant purchasing gunny bags from third parties to pack the procured Kharif Arhar (Tur) and Kharif Green Gram from the farmers, by paying GST @ 5%. Since the supply of tur dal and green gram is an exempted supply as per entry No.45 of the Notification No.2/2017- Central Tax(Rate) dated 28th June, 2017 the input paid on purchase of gunny bags is ineligible to claim as input tax credit as per subsection 2 of section 17 of the CGST Act, 2017. The subsection 2 of section 17 of the CGST Act 2017 clearly says that, the amount of credit shall be restricted to so much of the input tax as is attributable to the taxable supplies including zero-rated supplies - hence, input tax paid on the purchase of gunny bags shall not be claimed as input tax credit as per subsection 2 of section 17 of the CGST Act 2017 as the applicant used the said gunny bags for packing and supplying exempted goods. Deduction of TDS - HELD THAT:- The applicant is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t does not bear any brand name. Cost of transportation of crop procured, handling charges, gunny bag pre-tax value is reimbursed by NAFED and NAFED also pays 2% of the Minimum Support Price as Administrative Markup to the applicant. 5. In this background, the applicant had sought Advance Ruling on,- 1. Whether the transaction of supplying Kharif Arhar (Tur) Crops and Green Gram crops from farmers to NAFED is a taxable supply? What is the rate of tax to be charged for sale of Agricultural produce to NAFED, if it is to be treated as taxable supply? 2. Whether GST paid on purchase of Gunny bags by KSCMFL eligible to be claimed as Input tax credit? 3. Whether provisions of Section 51 and Notification 50/2018 - Central Tax dated 13 th September 2018 applicable on KSCMFL i.e. is KSCMFL required to deduct TDS u/s 51 of CGST/KGST Act, 2017 on payments to be made by KSCMFL to NAFED? 6. APPLICANT'S INTERPRETATION OF LAW: 6.1. The applicant submitted that they are in the business of procurement of Tur Dal and Green Gram from farmers at the Minimum Support Price and sell the same to NAFED. The transaction of selling of tur dal and Green Gram to NAFED falls within ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 18 - Central Tax dated 13.09.2018 nor under the list prescribed under Section 51 of CGST/KGST Act,2017.Therefore the provisions of TDS as prescribed under section 51 of CGST/KGST Act, 2017 are not applicable on the applicant. PERSONAL HEARING: 7. Sri. Mukul Harinath Sringeri, CA and Duly Authorized Representative of the applicant appeared for personal hearing proceedings before this Authority and reiterated the submissions as narrated above. FINDINGS AND DISCUSSION 8. At the outset we would like to make it clear that the provisions of CGST, Act 2017 and SGST, Act 2017 are in pari materia and have the same provisions in like matter and differ from each other only on a few specific provisions. Therefore, unless a mention is particularly made to such dissimilar provisions, a reference to the CGST Act would also mean reference to the corresponding similar provisions in the KGST Act. 9. We have considered the submissions made by the Applicant in their application for advance ruling as well as the submissions made by Sri. Mukul Harinath Sringeri, CA and Duly Authorized Representative during the personal hearing. We also considered the issue involved, on which adv ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... NED OR SPLIT 0713 10 Peas (Pisum sativum): 0713 10 10 Yellow peas 0713 10 20 Green peas 0713 10 90 Other 0713 20 Chickpeas (garbanzos): 0713 20 10 Kabuli chana 0713 20 20 Bengal gram (desi chana) 0713 20 90 - Other Beans (Vigna spp., Phaseolus spp.): 0713 31 - Beans of the species Vigna mungo (L.) Hepper or Vigna radiata (L.) Wilczek 0713 31 10 Beans of the species Vigna mungo (L.) Hepper 0713 31 90 Beans of the species Vigna radiata (L.) Wilczek 0713 32 00 Small red (Adzuki) beans (Phaseolus or Vigna angularis) 0713 33 00 Kidney beans, including white pea beans (Phaseolus vulgaris) 0713 34 00 Bambara beans (Vignasub ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... med as input tax credit as per subsection 2 of section 17 of the CGST Act 2017 as the applicant used the said gunny bags for packing and supplying exempted goods. 15. Further with regard to the third question it is admitted by the applicant that applicant is the co-operative society registered under the Registrar of Co-operative Societies of Mysore and it is not the society established by the Central Government or the State Government or a local authority under the Society Registration Act, 1860. The section 51 of the CGST Act 2017mandates following persons to deduct the Tax at source :- (a) a department or establishment of the Central Government or State Government; or (b) local authority; or (c) Governmental agencies; or (d) such persons or category of persons as may be notified by the Government on the recommendations of the Council, Further Notification 50/2018 Central Tax dated 13th September, 2018 has notified list of persons falling under clause d above who are required to deduct TDS and they are: (a) An authority or a board or any other body i. set up by an Act of Parliament or State Legislature; or ii. established by any government ..... X X X X Extracts X X X X X X X X Extracts X X X X
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