2018 (10) TMI 346 – AUTHORITY FOR ADVANCE RULINGS, UTTARAKHAND – 2018 (18) G. S. T. L. 641 (A. A. R. – GST) – Levy of GST – supply of goods namely 'Grit and Sand' – tax on Road Usage charges and Government fee paid by applicant to multiple Government Departments – GST on penalty paid on unaccounted stock of River Bed Material under serial number 5 of Reverse charge mechanism – availability of GST paid by applicant at the time of purchase or repairs including spares used by it for movement of goods in its place of business as input tax credit.
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Road Usage charges and Government fee paid by applicant to multiple Government Departments – Whether the same falls within the Exempted Government Services – Held that:- On the issue of 'Abhivahan Shulk', the applicant is liable to discharge GST Liability under Reverse Charge in terms of Serial no. 5 of N/N. 13/2017-CT(Rate) dated 28.06.2017 – the fee for ambient air monitoring has to be paid to the Uttarakhand environment protection contro
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public from the negative impact of polluting generating plants – thus both the conditions namely services has to be provided by local authority and activity should fall under Article 243 of Constitution, has been fulflled, hence the said activity of UEPPCB is exempt in terms of serial number 4 o the N/N. 12/2017-CT(Rate) dated 28-06-2017 – therefore there is no liability of GST arises on the fee collected by UEPPCB in respect of said activity as the same is exempt service.
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Khanji sampada shulk – Held that:- The said Shulk is a consideration received by the State Department in lieu of services provided to the applicant for carrying river produce – further, the said services which are exempt from GST are notified vide N/N. 12/2017-CT(Rate) dated 28-06-2017 – the service in question rendered by State Government is liable for GST at 18% under service code 9997 and to be treated as 'other services' – the applicant is required to discharge GST liability under Reverse charge in terms o
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o be treated as other services – the applicant is required to discharge GST Liability under Reverse charge in terms of sl.no. 5 of N/N. 23/2017.
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Input Tax Credit – Availability of GST paid by applicant at the time of purchase or repairs including spars w.r.t. Vehicles (Pokland, JCB, Dumper and Tipper) used by it for movement of goods in its place of business as Input Tax Credit – Held that:- Section 17(5) of the Act restrict availment of ITC in respect of GST paid on inputs, capital goods and services – in terms of the provisions of Section 2(76) of the Act the expression 'motor vehicle' shall have the same meaning as assigned to it in clause (28) of section 2 of Motor Vehicle Act, 1988 – Under the provisions of GST law, the GST paid on purchase of 'Pokland, JCB, Dumper and Tipper' used for transportation of goods will be allowed as ITC.
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Ruling:- “Abhivahan Shulk” is different from toll tax and is covered under Service Code 9997 and to be treated as 'other services' and is
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None Note : Under Section 100(1) of the Uttarakhand Goods and Service Tax Act, 2017, an appeal against this ruling lies before the appellate authority for advance ruling 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. 1. This is an application under Sub-Section (1) of Section 97 of the CGST/SGST Act, 2017 (herein after referred to as Act and the rules made thereunder filed M/s. Purewal Stone Crusher, Ramnagar (Nainital) Uttarakhand, primarily engaged in the business of supplying goods namely Grit and Sand to its customers after purchasing from the Uttarakhand Forest Development Corporation (UFDC) mining Division, Ramnagar and seeks an advance ruling on the question, details of which given below as: (a). Nature of Road Usage charges and Government Fee paid by applicant in respect of following services: Head Description of activity Nature Government Body Road Usage charges Abhivahan Sul
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t. department under s.no. 5 of Reverse Charge Mechanism (RCM) notification. (d). Vehicles (Pokland, JCB, Dumper & Tipper)purchased and used by the applicant in its day to day business activities for movement of goods from one place to another would fall within the definition of Motor Vehicle under the provisions or GST law. (e). Availability of GST Paid by the applicant at the time of purchase or repairs including spares w.r.t. Vehicles (Pokland, JCB, Dumper Tipper)used by it for movement of goods in its palace of business as Input Tax Credit. 2. Advance Ruling under GST means a decision provided by the authority or the appellate authority to an applicant on matters or on questions specified in sub-section (2) of section 97 or sub section (1) of section 100 in relation to the supply of goods or services or both being undertaken or proposed to be undertaken by the applicant. 3. In the present case applicant has sought advance ruling respect of applicability of notification Issued un
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done by the applicant with respect to any goods or services or both amounts to or results in a supply of goods or services or both, within the meaning of that term. 4. Accordingly opportunity of personal hearing was granted to the applicant on 28.08.2018. Shri Ashwarya Sharma (Advocate) appeared for personal hearing on 28.08.2018 and submitted documents describing therein exact nature of work beine undertaken. Nobody appeared from the side of Revenue for the hearing. 5. In the present application, applicant has requested for advance ruling on different issues which are mentioned in (b) (c) & (e) of the Point no.1 above and are now discuss as under: 5.1 Road Usage charges and Government Fee paid by the applicant to multiple Government Departments (tabled below) whether falls within the category of Exempted Government Services as mentioned under s.nos. 4, 5, 6, 9, 23 & 47 of the Exemption Notification: 6. In View of the above, we order as under: Head Description of activity Natu
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sudharan shulk" is charged and collected by applicant from non government, private and commercial vehicles engaged in mining work in lieu of use of forest road. Stated purpose of said "marg sudharan shulk" is for maintenance of forest road. Under GST, "the services by way of access to a roac or a bridge on payment of toll charges" are included in the list of exempted services. Further, A toll road, also known as a turnpike or tollway, is a public or private road for which a fee (or toll) is assessed for passage. It is a form of road pricing typically implemented to help recoup the cost: of road construction and maintenance In the present case we find that the said "marg sudharan shulk" is nothing but toll charges collected by the applicant from the users for using forest road and the said toll charges are being used for the maintenance of forest road. Therefore we conclude that no GST is leviable as on date on the said "marg sudharan shulk"
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consideration received by the applicant in lieu of services provided to the person for carrying forest produce. Under GST regime under Section 2(102) services means anything other than goods and all services but for list of exempted services as provided under Chapter 99 of GST Tariff, 2017 are liable for GST. Since the services provided by the ' applicant do not find mention in the list of exempted services, therefore the applicant, is liable to pay GST @ 18% on the said "Abhivahan Shulk" under Service Code 9997 and to be treated as "other services". Since the facts of the present case are similar to facts earlier dealt by the authority in the case of Forest Department, therefore, we find no reason to deviate from earlier ruling on the same issue. However on the is sue of "Abhivahan Shulk", the applicant is liable to discharge GST liability under reverse charge in terms of Serial No. 5 of the Notification no. 13/2017 – Central Tax (Rare) dated 28.06.2
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r Ambient Air Monitoring' has to be paid to the Uttarakhand Environment Protection Control Board, Haldwani as a pollution expenses. We also find that the function of the Uttarakhand Environment Protection Control Board, Haldwani is to safeguard the environment as well as general public from the negative impact of working of stone crushers and other pollution generating plants, for which a prescribed amount of fee is levied by the State Board. We also find from the official website of Uttarakhand Environment Protection and Pollution Control Board (herein after referred 'to as UEPPCB) that it is a statutory Organization constituted under the section 4 of Water (Prevention and Control of Pollution) Act, 1974 to implement Environmental laws and rules within the jurisdiction of Uttarakhand. The said Board has been entrusted with the powers and functions under the Water (Prevention and Control of Pollution) Act 1974. Subsequently the implementation of Water (Prevention and Control of
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ority in terms of Section 2(69)(c ) of the Act. It is established that UEPPCB is a local authority, now second question arises whether the services rendered by them are liable to GST or not. In. this context we find that the services rendered by UEPPCB is covered under Article 243 W of the Constitution and the same is extracted below: (a) Urban planning including town planning. (b) Regulation of land-use and construction of buildings. (c) Planning for economic and social development. (d) Roads and bridges. (e) Water supply for domestic, industrial and , commercial purposes. (f) Public health, sanitation conservancy and solid waste management. (g) Fire services. (h) Urban forestry, protection of the environment and promotion of ecological aspects. (i) Safeguarding the interests or weaker sections of society, including the handicapped and mentally retarded. (j) Slum improvement and upgradation. (k) Urban poverty alleviation. (l) Provision of urban amenities and facilities such as parks,
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ority or governmental authority by way of any activity in relation to any function entrusted to a municipality under Article 243 W of the Constitution Nil Nil In view of the above we find that functions, under article 243W of the Constitution, entrusted to municipality specifically mention "protection of the environment and promotion of ecological aspects". Thus we observe that providing protection to the environment and promotion of ecological aspects is one of the functions entrusted to the municipality under the said article. It is evident that primary function of UEPPCB is also to safeguard the environment as well as general public from the negative impact of polluting generating plants. Thus both the conditions namely service has to be provided by local authority and activity should falls under Article 243 of the Constitution, has been fulfilled, hence the said activity of UEPPCB.s exempted in terms of serial no. 4 of the Notification No. 12/2017-Central Tax(Rate) dated
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rency or de nomination for which a separate consideration is charged;" We further find that services which are exempted from GST are notified vide Notification No. 12/2017-Central Tax(Rate) dated 28* June' 2017. On going through the said notification we find that in totality 81 services are exempted services which includes 12 services' provided, by government or local authority and we observe that service in question provided by the State Government does not find place in said 12 services. Thus the service m question rendered by State Government is liable for GST. @ 18% under Service Code 9997 and to be treated as "other services". However the applicant is required to discharge GST liability under reverse charge in terms of serial No. .5 of the Notification no. 13/2017 – Central Tax (Rate) dated 28.06.2017 as discussed in point A above. D. For functioning of am, motor -vehicle or any kind of earth moving machinery on road, there is a mandatory registration fee re
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d Under exempted service (supra) under "Services provided by the Central Government, State Government, Union Territory or local authority by way of- (a) registration required under any law for the time being in force. Accordingly the services of registration rendered by State Transport. Office is a exempted service and no GST is payable on the same. 5.2 GST applicability on penalty paid by the applicant on unaccounted stock of River Bed Material (RBM) on the orders of the District Magistrate to the Govt, account under s.no 5 of Reverse Charge Mechanism (RCM) notification. We observe that GST is applicable on 'supply' of goods or services or both and is charged on the 'value of supply'. Section 15(1) of the Act defines 'value of taxable supply' Section 15(1) at the: transaction value, which is the price: actually paid or payable for the said supply of goods or services o" both where the supplier and the recipient of supply are unrelated aid the Price is
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er am law for the time being in force. Further, to satisfy the definition of service (defined in section 2(102) of Act ibid), the activity should be carried out by a person for another for consideration. Here it must be emphasized that the service is 'agreeing to the obligation to refrain from an act, or to tolerate an act or a situation, or to do an act', not 'to refrain from an act, or to tolerate an act or a situation, or to do an act'. We find that a service has been stated to mean the 'tolerating' of any act among other things. Since a service is any activity for a consideration such tolerating can be a service if it is in exchange of some consideration. According to the definition given by the Act, 'tolerating' an act signifies the foregoing o'' a benefit by the receiver in exchange for a consideration that compensates the act that is being tolerated. For example, when delivery date has been set and the person making the delivery delays it,
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GST @ 18% under Service Code '-99^ and to be treated as "other services". However the applicant is required to discharge GST liability under reverse charge in terms of serial No. 5 of the Notification no. 13/2017 -Central Tax (Rate) dated 28 06.2017 as discussed in point A above. 5.3 Availability of GST paid by the applicant at the time of purchase or repairs including spares w.r.t Vehicles (Pokland. JCB. Dumper & Tipper)used by it for movement of goods in its palace of business as Input Tax Credit. We find that the Section 17(5) of the Act restrict availment of ITC in respect of GST paid on inputs, capital goods and services. The relevant portion of the same is reproduce as under: (a) motor vehicles and other conveyances except when they are used- (i) for making the following taxable supplies, namely; (A) further supply of such vehicles or conveyances; or (B) transportation of passengers; or (C) imparting training on driving, flying navigating such vehicles or convey
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the-Act, Input Tax Credit shall not be available on "motor vehicle", unless it is used for specified purposes, viz transport, training etc, listed therein. One very important thing in the said section is the definition of the term "Motor Vehicle" under. GST It generally take it to mean that all types of vehicles, as nowadays everything is run by motor. But as per Section 2(76) of the Act the expression 'motor-vehicle' shall have the same meaning as assigned to it in clause (28) of Section 2 of the Motor Vehicle Act, 1988. We observe that definition in clause (28) of Section 2 of the Motor Vehicle Act, 1988 is an extensive definition which includes all kinds of mechanically propelled vehicles including a trailer. The scope of the Motor Vehicles Act is to bring into its fold all kinds of moving objects plying on the roads under its ambit so as to provide safety measures and regulate traffic. Therefore, any objects which moves on the road by itself requires reg
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he mining equipment viz., tippers, dumpers. Thus, as per present provisions, the GST charged or purchase of earth moving machinery including tippers, dumpers used for transportation of goods by a mining company will be allowed as input credit. ORDER (i) Abhivahan Shulk is different from toll tax and is covered under Service Code 9997, and to be treated as other services and is liable for GST. The applicant is liable to pay GST a 18% as on date on the same under reverse charge in terms of Serial No. 5 of the Notification no. 13/2017 – Central Tax (Rate) dated 28.06.2017 (as amended) ; (ii) The fee collected by UEPPCB is exempted in term of serial no. 4 of the Notification No. 12/2017-Central Tax(Rate) dated 28th June 2017. Therefore there is no GST on the same; (iii) Khanij sampada sulk is a supply of service. The applicant is liable to pay GST @ 18% as on date on the same under reverse charge in terms of Serial No. 5 of the Notification no. 13/2017 – Central Tax (Rate) dated 28.06.2017
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