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TMI Blog2020 (9) TMI 1226X X X X Extracts X X X X X X X X Extracts X X X X ..... led Form ARA-01 ( the Application Form for Advance Ruling) accompanied with the requisite fee and alongwith certain annexures and documents. 3. The Applicant in their Application has sought the Advance Ruling on the following issues: i. Whether there is a supply of service by the applicant Corporation in recovery of expenses from DISCOMs as well as UPPTCL and other power companies by way of book entries and hence, liable to GST; ii. Whether inclusion clause in subsection (2) of Section 15 of CGST Act, 2017 providing for inclusion of incidental expenses in value of supply apply to applicant's case (i.e. recovery, by way of book entries, of O&M expenses from DISCOMs as well as UPPTCL and other power companies) when there is no supply ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o forwarded through mail dt 30.08.2020. Discussion & Findings 6. At the outset, we would like to make it clear that the provisions of the both the CGST Act and the UPGST Act are the same except for certain provisions. Therefore, unless a mention is specifically made to such dis-similar provisions, a reference to the CGST Act would also mean a reference to the same provisions under the UPGST Act. Further, to the earlier, henceforth for the purposes of this Advance Ruling, a reference to such a similar under the CGST Act / UPGST Act would be mention as being under the 'CGST Act.' 7. We have gone through the submissions made by the applicant and have examined the explanation submitted by them. At the outset, we find that the issues ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e 'Supply' under the provisions of the CGST Act. Let us examine the term 'Supply' Section 7 (1) - Supply The term Supply has been defined under section 7 (1) of the CGST Act by way of Scope of Supply which includes: (a) All forms of Supply of goods or services or both such as sale, transfer, barter, exchange, licence, rental, lease or disposal made or agreed to be made for a consideration by a person in the course or furtherance of business; (b) import of services for a consideration whether or not in the course or furtherance of business; and (c) the activities specified in Schedule made or agreed to be made without a consideration. Thus, Supply has two important elements: * Supply is done for a consideration ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... between Applicant Corporation and its subsidiaries is undoubtedly commercial. The fact that subsidiaries i.e. DISCOMs are providing exempt supply is immaterial for the purpose of determination of nature of activity between Corporation and its subsidiaries. The activities which are listed in para 5 of the Application and for which "Operational & Management Expenses" are being incurred and passed on are apparently carrying a 'Consideration.' There is also no denying in the fact that it is for the furtherance of business. Thus, the activities as mentioned above squarely meet the twin test laid down under Section 7(1) of the CGST Act for the purpose of being identified as 'Supply'. As we hold that the activities for which O & M ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e with 'Medical Expenses' or 'Recruitment Expenses'. Accordingly, we hold that the expenses incurred on account of heads claimed to be exempted are also liable to be charged to GST. 11. As regards, the transfer of miscellaneous income of the Applicant Corporation to DISCOMs which is the subject matter of question no.4. as we held that recovery of expenses are classifiable as 'Supply', so would be the 'Income'. The same is also classifiable as 'Supply' and would be chargeable to GST as per discussion made in para 8 above. 12. Coming on to the final question i.e. question no.5 regarding the availability and admissibility of Input Tax Credit of GST paid on the supplies discussed above, we find that the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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