TMI Blog2021 (8) TMI 355X X X X Extracts X X X X X X X X Extracts X X X X ..... eiving the reimbursement of diesel cost, the recipient is not paying for the diesel but for the services of DG Set, which is an integral part of the supply of DG Set rental service. There is no separate contract for supply of diesel and the invoice issued for the reimbursement of diesel cost is nothing but a supplementary invoice issued for the supply of rental service of DG Set. The consideration for reimbursement of expenses as cost of the diesel for running of the DG Set is nothing but the additional consideration for the renting of DG Set and attracts CGST @ 18%. - KAR ADRG 44/2021 - - - Dated:- 30-7-2021 - DR. M.P. RAVI PRASAD AND SRI. MASHHOOD UR REHMAN FAROOQUI, MEMBER Represented by : Sri Shankar Y Basangoudar, Partner ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... red into agreement with Life Insurance Corporation of India (LIC), Branch Office at Koppa, Udupi to install Diesel Generator on hire basis for rent of ₹ 10,520-00 per month along with reimbursement of diesel cost at ₹ 305-00 per hour on usage of the DG Set. 5.3 The applicant submits that he is discharging tax @ 18% (CGST @ 9% and KGST @ 9%) on DG Set hiring charges and also discharging tax @ 18% (CGST @ 9% and KGST @ 9%) on reimbursement of diesel cost incurred for running DG Set. 5.4 One of the recipient of services, i.e. Life Insurance Corporation of India (LIC) was of the opinion that the taxes collected by the applicant pertaining to the reimbursement of diesel charges for running the Diesel Generator was erroneous as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Shankar Y Basangoudar, Partner of the applicant appeared for personal hearing proceedings held on 15-04-2021 reiterated the facts narrated in their application FINDINGS DISCUSSION 7. 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. 8. We have considered the submissions made by the applicant in their application for advance ruling as well as the submissions mad ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in response to, or for the inducement of, the supply of goods or services or both, whether by the recipient or by any other person but shall not include any subsidy given by the Central Government or a State Government; (b) the monetary value of any act or forbearance, in respect of, in response to, or for the inducement of, the supply of goods or services or both, whether by the recipient or by any other person but shall not include any subsidy given by the Central Government or a State Government: 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; 12. The cont ..... X X X X Extracts X X X X X X X X Extracts X X X X
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