2019 (3) TMI 1074 - AAR - GST

Requirement of registration - providing taxable and exempted services - import of services - Rajiv Gandhi Centre for Aquaculture RGCA is a society under Marine Products Export Development Authority, Ministry of Commerce Industry, Govt. of India - whether RGCA is required to register under GST Laws? - Purchase of material interstate by unregistered dealer. If no registration is required for RGCA, whether compulsory registration u/s 24 is required to be made against any of the provisions of Section 24? - Held that - It is clear that all the supplies of RGCA are not exempt and some are taxable supplies. RGCA has also stated that their aggregate turnover is above ₹ 20 Lakhs and that they are also receiving consultancy services from abroad and receiving legal services, which are covered under reverse charge mechanism. In any case, RGCA is making taxable supplies and hence is not covered under the exemption from registration under Section 23. Therefore RGCA is liable for registration under Section 22 of CGST/TNGST Act. Whether separate registration is to be taken from all the states where the offices of RGCA is situated? Explain the procedure to obtain registration? - If registration is required to be made, what are the tax rates applicable to the transactions of RGCA? - Held that - It is observed that Section 25(1) of the CGST Act, 2017 provides that every person who is liable to be registered under section 22 or section 24 shall apply for registration in every such State or Union territory in which he is so liable. Therefore, registration is required to be taken in the states or union territory from where taxable supplies are made. Since RGCA-Head office is having GST Registration (Migrated from TNVAT) at Tamil Nadu only other various project sites are located at different states but doesn t having the GST registration so far, If they want to purchase materials through interstate from Mumbai to its one of the branch at Kerala, how the purchases of the materials to be made and what are the documents to be carried for the transport of such purchased goods under GST? - Held that - It is observed that this question is not on any of the specified issues in respect of which advance ruling may be sought in terms of Section 97 (2) of the CGST Act, 2017. Therefore, the provisions of Advance Ruling are not applicable to this question and no ruling is provided in this regard.

Summary

Issues Involved:
1. Whether RGCA is required to register under GST Laws.
2. If no registration is required for RGCA, whether compulsory registration under Section 24 is required.
3. Whether separate registrations are required for all states where RGCA offices are located.
4. Applicable tax rates for RGCA's transactions.
5. Documentation required for interstate purchase of materials.

Detailed Analysis:

Issue 1: Registration Requirement under GST Laws
- Section 22(1) of the CGST Act, 2017 mandates registration for every supplier whose aggregate turnover exceeds ?20 lakhs.
- Section 23(1)(a) exempts entities exclusively supplying goods/services that are not liable to tax or are wholly exempt.
- RGCA, being registered under VAT laws, is liable for GST registration as per Section 22(2).
- Despite RGCA's claim of exemption under Section 23, their aggregate turnover exceeds ?20 lakhs, and they make taxable supplies, thus requiring registration.

Issue 2: Compulsory Registration under Section 24
- Since RGCA is required to register under Section 22, the question of compulsory registration under Section 24 becomes redundant.

Issue 3: Separate Registrations for Different States
- Section 25(1) of the CGST Act, 2017 requires registration in each state or union territory from where taxable supplies are made.
- RGCA must obtain separate registrations for each state where they have offices and make taxable supplies.

Issue 4: Applicable Tax Rates for RGCA's Transactions
- Fish seeds, prawn/shrimp seeds (Classifiable under 0301) are exempt from CGST and SGST.
- Live fish (Classifiable under 0301) are also exempt from CGST and SGST.
- Artemia cysts (Classifiable under 0511) are taxable at 2.5% CGST and 2.5% SGST.
- Research and development activities (Classifiable under SAC 9981) are taxable at 9% CGST and 9% SGST.
- Consultancy services (Classifiable under SAC 9986) related to nursery technology, cage farming, etc., are exempt from CGST and SGST.
- Testing services (Classifiable under SAC 9983) for pathogens, chemical analysis, and gene sequencing are taxable at 9% CGST and 9% SGST.
- Training services to farmers, hatcheries (Classifiable under SAC 9986) are exempt from CGST and SGST.
- Training activities to students and academia (Classifiable under SAC 9992) are taxable at 9% CGST and 9% SGST.

Issue 5: Documentation for Interstate Purchase
- This question does not fall under the specified issues for advance ruling under Section 97(2) of the CGST Act, 2017, and thus no ruling is provided.

Ruling:
1. RGCA is required to register under Section 22 of CGST and TNGST Act.
2. RGCA must obtain registration in every state or union territory where they are liable.
3. Tax rates for various supplies by RGCA are:
- Fish seeds, prawn/shrimp seeds: Exempt.
- Live fish: Exempt.
- Artemia cysts: 2.5% CGST and 2.5% SGST.
- Research and development activities: 9% CGST and 9% SGST.
- Consultancy services: Exempt.
- Testing services: 9% CGST and 9% SGST.
- Training services to farmers, hatcheries: Exempt.
- Training activities to students and academia: 9% CGST and 9% SGST.