9911796707
|
Home
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2019 (6) TMI 821 - AAR - GSTGST rate on public funded institution read with Notification No. 47/2017 dated 14.11.2017 - Classification of supply of goods - Whether the Material Aluminium Alloys (HSN.76012010) can be supplied under Govt. N/N. 47/2017 dated 14.11.2017? - HELD THAT - The transaction is a supply of Aluminum Alloy . We have no doubt that the recipient of the supply i.e. GTRE is a Government Public Funded Research Institution - the applicant has supplied Aluminium Alloy having HSN Code No.76012010 which is not a Scientific and technical instrument apparatus equipment or accessories parts consumables and live animals (experimental purpose); or computer software Compact Disc-Read Only Memory (CD-ROM) recorded magnetic tapes microfilms microfiches or Prototypes the aggregate value of prototypes The recipient is a public funded institution and Notification No. 47/2017 is applicable in respect of supplies made to them but only goods specified in the column no. (3) of the table in the Notification are liable for concessional rate of tax @ 5%. Thus goods other than those mentioned in the said Notification are not to be liable for concessional rate of 5% tax except the goods having originally been held as a 5% in the schedule entries. The said certificate has not certified that Aluminum Alloy supplied by applicant is used in the research of recipient and is covered under the said Notification. The goods i.e Aluminum Alloy having HSN Code No.76012010 supplied by the applicant to GTRE is not eligible for concessional rate of GST and Notification No. 47/2017 IGST (Tax) dt .14.11.2017 is not applicable to the transaction undertaken by the applicant. The subject supply will be liable as per rate prescribed in Schedule of GST Act i.e. @ 18 %. The notification is thus not applicable for the supply of goods.
Issues Involved:
1. Applicability of Notification No. 47/2017 dated 14.11.2017 for concessional GST rate on Aluminium Alloys (HSN 76012010). 2. Compliance with conditions specified in Notification No. 47/2017 for availing concessional GST rate. Detailed Analysis: 1. Applicability of Notification No. 47/2017 dated 14.11.2017 for concessional GST rate on Aluminium Alloys (HSN 76012010): The applicant, M/s. EMMES METALS PRIVATE LTD, sought an advance ruling on whether Aluminium Alloys (HSN 76012010) supplied to Gas Turbine Research Establishment (GTRE) could be taxed at a concessional rate of 5% GST as per Notification No. 47/2017. GTRE, a public funded research institution, claimed entitlement to the concessional rate. The relevant notification exempts certain goods from IGST in excess of 5% when supplied to specified institutions, including public funded research institutions, subject to conditions. The goods listed in the notification include scientific and technical instruments, apparatus, equipment, accessories, parts, consumables, live animals (experimental purpose), computer software, CD-ROMs, recorded magnetic tapes, microfilms, microfiches, and prototypes. The Authority examined whether Aluminium Alloys fall under the specified goods in the notification. It was found that Aluminium Alloys are not listed as “scientific and technical instruments, apparatus, equipment, or accessories, parts, consumables and live animals (experimental purpose); or computer software, Compact Disc-Read Only Memory (CD-ROM), recorded magnetic tapes, microfilms, microfiches or Prototypes.” 2. Compliance with conditions specified in Notification No. 47/2017 for availing concessional GST rate: The jurisdictional officer noted that the GST rate on Aluminium Alloy (HSN 76012010) is 18% and that the applicant relied on Notification No. 47/2017, which exempts IGST in excess of 5% for goods supplied to public funded research institutions, subject to conditions. One key condition is that the institution must certify that the goods are required for research purposes only. The certificate provided by GTRE did not explicitly state that the Aluminium Alloys were required solely for research purposes. The Authority emphasized that only goods specified in the notification and used for research purposes are eligible for the concessional rate. Since Aluminium Alloys are not listed in the notification and the certificate did not confirm their use for research, the concessional rate of 5% was deemed inapplicable. Conclusion: In conclusion, the Authority ruled that Aluminium Alloys (HSN 76012010) supplied by the applicant to GTRE are not eligible for the concessional GST rate of 5% under Notification No. 47/2017. The applicable GST rate for the subject supply is 18%, as prescribed in the GST Act schedule. Order: The Authority answered the question in the negative, confirming that Aluminium Alloys (HSN 76012010) cannot be supplied under the concessional rate specified in Notification No. 47/2017. The subject supply is liable to an 18% GST rate.
|
