2018 (6) TMI 430 - AAR - GST

Levy of GST - Marg Sudharan Shulk and Abhivahan Shulk - Whether GST is leviable on the Marg Sudharan Shulk and Abhivahan Shulk charged by Forest Division Dehradun from the non government, private and commercial vehicles engaged in mining work in lieu of use of forest road? - Held that - Under GST, the services by way of assess to a road or a bridge on payment of toll charges are included in the list of exempted services - 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 - no GST is leviable as on date on the said marg sudharan shulk charged and collected by the applicant. GST on Abhivahan Shulk - Held that - The said Abhivahan Shulk is charged and collected by applicant in respect of forest produce carried out by a person - The said Abhivahan Shulk can not be termed as toll tax and rather is a form of consideration received by the applicant in lieu of services provided to the person for carrying forest produce - 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 . Ruling - no GST is leviable as on date on the said marg sudharan shulk charged and collected by the applicant - the applicant is liable to pay GST @ 18% on the said Abhivahan Shulk under Service Code 9997 and to be treated as other services .

Summary

Issues:
Leviability of GST on "Marg Sudharan Shulk" and "Abhivahan Shulk" charged by Forest Division Dehradun from non-government, private, and commercial vehicles engaged in mining work.

Analysis:
The application under Section 97 of the CGST Act seeks an advance ruling on the GST levied on "Marg Sudharan Shulk" and "Abhivahan Shulk" collected by Forest Division Dehradun from vehicles involved in mining activities on forest roads. Advance Ruling under GST pertains to decisions provided by the authority on matters related to the supply of goods or services. The applicant sought clarity on the determination of tax liability on the mentioned charges, falling under Section 97(2)(e) of the CGST/SGST Act, leading to the admission of the application.

The applicant was granted a personal hearing, where the nature of work undertaken was described. Despite the absence of any representation from the Revenue side, the applicant's case was considered. The applicant specifically requested an advance ruling on the GST applicability concerning "Marg Sudharan Shulk" and "Abhivahan Shulk."

Regarding "Marg Sudharan Shulk," it was observed that the charges collected for the use of forest roads were akin to toll charges, which are exempted under GST for services related to access to roads or bridges. As the purpose of "Marg Sudharan Shulk" was for the maintenance of forest roads, it was concluded that no GST was leviable on these charges.

In the case of "Abhivahan Shulk," it was noted that these charges were collected for transporting forest produce and were not akin to toll taxes. The charges varied based on the quality and quantity of the forest produce being transported, and were considered as consideration for services provided in carrying the forest produce. As these services did not fall under exempted categories, GST at 18% under Service Code 9997 was deemed applicable on "Abhivahan Shulk" as "other services."

In conclusion, the ruling determined that while GST was not leviable on "Marg Sudharan Shulk" due to its nature resembling toll charges for road maintenance, GST at 18% was applicable on "Abhivahan Shulk" collected for transporting forest produce as a consideration for services provided.