TMI Blog2022 (11) TMI 897X X X X Extracts X X X X X X X X Extracts X X X X ..... MEENA, MEMBER Present for the Applicant : Sh. Pankaj Rayal, Advocate, Present for the Jurisdictional Officer None Concerned Officer: Sh. Deepak Brijwal, Deputy Commissioner Note : An appeal against this ruling lies before the appellate authority for advance ruling under Section 100(1) of the Uttarakhand Goods and Services Tax Act, 2017, constituted under Section 99 of the Uttarakhand Goods and Services Tax Act, 2017, within a period of 30 days from the date of service of this order. PROCEEDINGS This is an application under Sub-Section (1) of Section 97 of the Central Goods Service Tax Act, 2017 and Uttarakhand State Goods Service Tax Act, 2017 (hereinafter referred to as CGST/SGST Act) and the rules made there under filed by M/s Tara Genset Engineers (Regd.), Lane No. 1, Dhoran Khas, Phase No. 1, Street No. 2, Dehradun, Uttarakhand-248001 (herein after referred to as the applicant ) and registered with GSTIN 05AAJFT8968K1ZC under the CGST Act, 2017 read with the provisions of the UKGST Act, 2017. 2. In the application dated 29.09.2022, the applicant submitted that:- (a) That they are a partnership firm in the business of Renting of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mounts to or results in a supply of goods or services or both within the meaning of that term. 5.2 In the present case applicant has sought advance ruling on the determination of the liability to pay tax on services, therefore, in terms of said Section 97(2) (e) of CGST/SGST Act, 2017, the present application is hereby admitted. 6. Accordingly opportunity of personal hearing was granted to the applicant on 13.10.2022. Sh. Pankaj Rayal, Advocate, on behalf of the applicant appeared for personal hearing on the said date and re-iterated the submission already made in their application. Sh. Deepak Brijwal, Deputy Commissioner, Concerned Officer from the State Authority was also present during the hearing proceedings. He presented the facts and requested the authority to decide the case on merits. 7. From the record submitted by the applicant we find that applicant is registered in Uttarakhand with GSTIN bearing No. 05AAJFT8968KIZC. Before proceeding in the present case, we have to first go through the submissions made by the applicant which are as under:- (a) That they are engaged in the business of Renting of DG Set to various customers in various District of Uttarakhand ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ht by the applicant, relevant facts and the applicant's interpretation of law. Now we proceed by taking up the issue: 8.2 We find that the issue involved is of the valuation of the supply, hence for perspective Section 15 of the CGST Act, 2017 is reproduced below:- 15. Value of Taxable Supply.- (1) The value of a supply of goods or services or both shall be the transaction value, which is the price actually paid or payable for the said supply of goods or services or both where the supplier and the recipient of the supply are not related and the price is the sole consideration for the supply. (2) The value of supply shall include,- (a) any taxes, duties, cesses, fees and charges levied under any law for the time being in force other than this Act, the State Goods and Services Tax Act, the Union Territory Goods and Services Tax Act and the Goods and Services Tax (Compensation to States) Act, if charged separately by the supplier; (b) any amount that the supplier is liable to pay in relation to such supply but which has been incurred by the recipient of the supply and not included in the price actually paid or payable for the goods or services or both; ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... be related . We observe that the section provides that the value of a supply of goods or services or both shall be the transaction value, which is the price actually paid or payable for the said supply of goods or services or both where the supplier and the recipient of the supply are not related and the price is the sole consideration for the supply. 8.3 We further observe that it has been specifically mandated that the value of supply shall include (a) any taxes, duties, cesses, fees and charges levied under any law for the time being in force other than this Act, the State Goods and Services Tax Act, the Union Territory Goods and Services Tax Act and the Goods and Services Tax (Compensation to States) Act, if charged separately by the supplier; and (b) any amount that the supplier is liable to pay in relation to such supply but which hits been incurred by the recipient of the supply and not included in the price actually paid or payable for the goods or services or both. From the above, it very clear that the Section 15 of the CGST Act, 2017 mandate that the value of supply shall include among other things, any other amount that the supplier is liable to pay in relati ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the diesel only but for the services of DG Set which have been hire on rent and the diesel is an integral part of the supply of DG Set rental service. There is no separate contract for supply of diesel and even single invoice is issued for the supply of rental service of DG Set although both the components are shown separately. Hence, the 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 GST @18%. 9. We also find that Karnataka Authority for Advance Ruling vide Advance Ruling No. KAR ADRG 44/2021 dated 30.07.2021 in the similar case of M/s. Goodwill Autos, Hubbali, Dharwad has held that the cost of the diesel incurred for running DG Set in the course of providing DG Rental Service is nothing but additional consideration for the supply of DG Set on rent as per section 15 of the GST Act and hence attracts GST @ 18%. 10. Therefore, we observe that the price of the Diesel i.e. the fuel, to run the DG Set, shall form part of value of supply in view of Section 15 of the CGST Act, 2017, as for the purpose of levy of GST, cost of all the inputs, has to be included in the va ..... X X X X Extracts X X X X X X X X Extracts X X X X
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