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2020 (2) TMI 1414

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....2017 read with the provisions of the Haryana Goods and Services Tax Act, 2017 vide common GSTIN 06AABCH4536J1ZM. 1.2  For power generation in thermal plants, the applicant procures Coals from various Coal companies which levies GST @5% as well as Compensation cess @ Rs. 400/- per MT. 1.3  A coal based thermal power plant converts the heat energy of the coal into electrical energy. This is achieved by raising the steam in the boilers, expanding it through the turbine and coupling the turbines to the generators which converts mechanical energy into electrical energy. 1.4  When coal burns in thermal plants on a high temperature, transforms the clay minerals in coal powder into a variety of fused fine particles of mainly alumi....

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....lity coal. Such segregated coal is called coal rejects which is used by the various industries as fuels. The applicant want to sale reject coal to such industries. 2.  Question on which Advance Ruling is required: 2.1  Whether coal rejects to be supplied (disposed of) by way of sale at very nominal price by the power plants of the applicant attracts levy of compensation cess @ Rs. 400/- per MT? 2.2  Whether coal rejects to be supplied by the power plants of the applicant is covered under HSN 2701 for levy of compensation cess @ Rs. 400/- per 2.3  Whether coal rejects to be supplied (disposed of) by way of sale at very nominal price by the power plants of the applicant is covered for exemption from compensation cess v....

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....+ Rs. 400 PMT Compensation Cess Coal rejects fall under heading 2701 and attract 5% GST and Rs. 400 PMT Compensation Cess. 3.4  However, the applicant submitted that no any notification has been issued to legalize the clarification issued vide Press Release dated 18.01.2018. 3.5  The applicant submitted that the 28th meeting of the Goods and Services Tax (GST) Council was held on 21 July, 2018 in which it is recommended to exempt from compensation cess to coal rejects from washery. The condition, however, is that the input tax credit (ITC) should not have been taken in respect of coal rejects. To effectuate the same notification No.02/2018-Compensation cess (Rate) date 26.07.2018 was issued by making amending in Noti....

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....der HSN 2701 for levy of compensation cess @ 400/- per tonne as HSN 2701 covers "Coal; briquettes, ovoids and similar solid fuels manufactured from coal."  3.9  CBIC prescribes nil rate of GST compensation cess on Coal rejects supplied by a coal washery, arising out of coal on which compensation cess has been paid and no input tax credit thereof has been availed by any person vide notification No. 02/2018- compensation cess (Rate) dt. 26.07.2018. As the applicant is not covered under the coal washery which is also endorsed by the applicant in Para 12 of their application, the applicant is not covered for the exemption from compensation cess vide notification No. 02/2018-compensation cess (Rate) dated 26.07.2018. 3.10  As pe....