In Re : Joint Plant Committee
GST
2018 (4) TMI 809 – AUTHORITY FOR ADVANCE RULING , WEST BENGAL – 2018 (13) G. S. T. L. 89 (A. A. R. – GST)
AUTHORITY FOR ADVANCE RULING , WEST BENGAL – AAR
Dated:- 21-3-2018
Case Number 02 of 2018
GST
Vishwanath Member And Partha Sarathi Dey Member
Applicant's representative heard Sri Pritam Choudhury, CFA
ORDER
1. The Applicant is a non-profit organisation set up by the Central Government under Clause 17 of the Iron & Steel (Control) Order vide SO 1567 dated 07/04/1971. The Government of India has since modified the composition and functions of the Applicant from time to time. Notification No. 4(5)/03-DI dated 18/08/2008 of the Ministry of Steel re-defines role and composition of the Applicant, which is further modified vide Notification No. 4(17)/2016 – SDI dated 13/04/2017. Apart from six members from the Iron & Steel industry, representing both the Public and the Private sectors, and one each, from the Railway Board, Export
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
& Steel Sector including fluctuation in market price, production, availability and movement of material etc.
4. It appears from the statement of accounts for the year ending on 31/03/2017, submitted along with the Application, that the main source of the Applicant's income is interest accrued on the deposits and on the loans provided from the Steel Development Fund. A secondary source of income is the consideration received from sale of journals and periodicals and from renting accommodation in its guest houses. The aggregate turnover from these sources well exceeds the threshold of twenty lakh rupees and makes it liable for registration under Section 22 (1) of the GST Act, provided it does not make exclusively supply of goods or services that are not liable to tax or wholly exempt from tax under the GST Act.
5. The Applicant's supplies of journals and periodicals are wholly exempt under serial no. 120 of Notification No. 2/2017 – Central Tax (Rate) dated 28/06/2017 (1126 – FT dated
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
l hereinafter be referred to collectively as “Exemption Notifications for Services”. Exemption under serial no. 1 of the Exemption Notifications for Services is available for charitable activities within the meaning of definition clause (r) of the above notifications. It means activities relating to public health of specific categories, advancement of religion, spirituality or yoga, advancement of educational programmes or skill development relating to specific categories and preservation of environment, including watershed, forests and wildlife. None of the applicant's services are eligible under this clause. Serial no. 1 of the Exemption Notifications for Services is, therefore, not applicable.
7. Moreover, it is stated to be charging room rent below Rs. 1000/- per day per unit for accommodation in its guest houses, which is an exempt supply under serial no. 14 of the Exemption Notifications for Services.
8. The Applicant declares it makes no other supplies of goods or services.
9
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
tax by the recipient of supply of goods or services or both instead of the supplier of such goods or services or both under sub-section (3) or sub-section (4) of section 9, or under sub-section (3) or sub-section (4) of section 5 of the Integrated Goods and Services Tax Act.”
Section 24 is not subject to the provisions of Section 23 of the GST Act. If a person, therefore, is not liable to be registered for making exclusively exempt supplies but is liable to pay tax under Reverse Charges under Section 9(3) of the GST Act or 5(3) of the IGST Act, he shall be required to get himself registered under the GST Act, irrespective of the quantum of the aggregate turnover.
12. Based on information furnished along with the Application and the material presented at the time of Personal Hearing, it is, therefore, held that the Applicant is engaged exclusively in supplying goods and services that are wholly exempt from tax, and, therefore, not liable to be registered in accordance with the provis
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =