2020 (4) TMI 65 - AAR - GST

Classification of services - Rate of GST - services provided by M/S Garhwal Vikas Nigam, for which royalty is being paid - period 01.07.2017 to 31.12.2018 - HELD THAT - Since we have already decided vide ruling IN RE KULDEEP SINGH BUTOLA 2020 (3) TMI 239 - AUTHORITY FOR ADVANCE RULING - UTTARAKHAND that that the service in question falls under residual entry 17 (viii) of said Notification and on perusal of aforesaid tables, we find that the said entry was amended vide Notification No. 27/2018-Central Tax (Rate) dated 31.12.2018 (applicable w.e.f 01.01.2019) which implies that the service in question provided during the period 01.07.2017 to 31.12.2018 attract GST at the same rate of central tax as on supply of like goods involving transfer of title in goods and w.e.f 01.01.2019 the said service attract GST @ 18%. The services rendered by M/s. GMVN to the applicant during the period 01.07.2017 to 31.12.2018 attract GST at the same rate of central tax as on supply of like goods involving transfer of title in goods. i.e. 5%.

Summary

Issues:
Rate of GST for services provided by M/S Garhwal Vikas Nigam to the applicant for which royalty is paid.

Analysis:
1. The application seeks an advance ruling on the GST rate for services provided by M/S Garhwal Vikas Nigam to the applicant. This falls under the purview of Section 97 of the CGST/SGST Act, 2017.

2. The advance ruling authority can address issues related to the classification of goods or services, applicability of notifications, determination of time and value of supply, input tax credit, liability to pay tax, registration requirements, and whether certain actions constitute a supply of goods or services.

3. The applicant had previously sought a ruling on the classification and applicable tax rate for the services in question. A previous ruling had determined that the services attracted GST at 18%. However, the current application specifically pertains to the period from 01.07.2017 to 31.12.2018.

4. The authority reviewed the relevant notification, which specified that services falling under residual entry 17 (viii) would attract GST at the same rate as goods involving the transfer of title. An amendment effective from 01.01.2019 increased the GST rate to 18%.

5. Based on the previous ruling and the notification amendment, the authority concluded that services provided by M/S Garhwal Vikas Nigam to the applicant between 01.07.2017 and 31.12.2018 would attract GST at 5%, consistent with the rate applicable to goods involving the transfer of title.

6. Therefore, the ruling determined that the services rendered during the specified period would attract GST at 5%, aligning with the rate applicable to goods with a transfer of title.

This comprehensive analysis addresses the legal issues involved in the judgment, providing a detailed understanding of the ruling's implications and the application of relevant GST rates to the services in question during the specified period.