2021 (6) TMI 521 - AAR - GST

Classification of goods - scientific and technical instruments/ equipment supplied to public funded research institutions, research institutions, universities, Indian Institute of Technology, departments and laboratories of the Central and State Government, basis the certificates appended herewith - part a of the Sr. No. I of the condition in the Certificate of Registration with DSIR - applicability of N/N. 45/2017-C.T. (Rate) dated 14.11.2020 and corresponding N/N. 45/2017 and 47/2017 issued under the MGST Act, 2017 and the IGST Act, 2017 - HELD THAT - Considering the fact that conditions prescribed under all Notifications are the same, production of Certificate of registration with DSIR having reference to the erstwhile Notification No. 51/96-Cus should be considered sufficient compliance for eligibility to avail benefit of the Notifications issued under CGST/SGST and IGST - Further, Explanation 2 to Notification No. 47/2017 dated 14.11.2017 as amended explicitly provides exemption would be in line with the notification of the G.O.I. in the M.O.F. (Department of Revenue), No. 51/96-Customs, dated the 23.07.1996 and is applicable with effect from the 15th November, 2017. As per Sr. No 1 of Notification 45/2017, when the said goods are supplied to public funded research institutions other than a hospital or a university or an HT or an IIS or a National Institute of Technology (NIT)/REC, for availing exemption mentioned therein, the said institution must produce a certificate of registration with DSIR, from an officer not below the rank of the Deputy Secretary in the Union territory in concerned department to the supplier, (in this case, the applicant) at the time of supply of the specified goods - In absence of the necessary certificates/documents having being produced before this authority the applicant is not entitled for exemption as a blanket case. Benefit of N/N. 45/2017 - HELD THAT - As per Sr. No 3 of Notification 45/2017, when the said goods are supplied to Departments and laboratories of the Central Government and State Governments, the said departments/laboratories must produce, at the time of supply, a certificate to the applicant from the Head of such Institution, in each case, certifying that the said goods are required for research purposes only. Applicant has submitted that, such certificates are provided to them by the Head of the Institutions to whom the said goods are supplied. However, corresponding documentary evidence has been submitted only in a couple of cases - The Applicant would be correct in charging 2.5% CGST and SGST respectively or 5% IGST, as applicable, by applying Notification No.45/2017-C.T.-(Rate), Notification No. 45/2017-S.T.-(Rate) And Notification No. 47/2017-I.T.-(Rate) all dated 14.11.2017 on the said goods, only when supplied to institutions, universities, IIT, departments and laboratories, etc mentioned in the said Notification 45/2017, on the basis satisfaction of all conditions mentioned in the said notifications. Applicant would be correct in charging 5% GST only in 4 cases of National Centre for Polar and Ocean Research, University of Delhi, Council of Scientific and Industrial Research CSIR-North East and Institute of Science Technology where all the conditions mentioned in the impugned Notifications are found to be satisfied and the necessary and proper certificates, complete in all respects as mandated by the relevant Notifications have been produced.

Issues Involved:
1. Applicability of concessional GST rates on scientific and technical instruments/equipment supplied to specified institutions.
2. Validity of DSIR certificates issued under the erstwhile Central Excise regime for availing GST exemptions.
3. Compliance with conditions specified in Notification No. 45/2017-C.T. (Rate), Notification No. 45/2017-S.T. (Rate), and Notification No. 47/2017-I.T. (Rate).

Issue-Wise Detailed Analysis:

1. Applicability of Concessional GST Rates:
The applicant, M/s. Thermo Fisher Scientific India Pvt. Ltd., sought an advance ruling on whether they could charge a concessional GST rate of 2.5% CGST and SGST or 5% IGST on scientific and technical instruments/equipment supplied to public funded research institutions, research institutions, universities, IITs, and government departments and laboratories. The applicant referred to Notification No. 45/2017-C.T. (Rate), Notification No. 45/2017-S.T. (Rate), and Notification No. 47/2017-I.T. (Rate), which provide for such concessional rates subject to certain conditions.

2. Validity of DSIR Certificates:
The applicant argued that the DSIR certificates issued under the erstwhile Central Excise regime should be considered valid for availing GST exemptions. These certificates typically referenced older notifications and had not been updated to reflect the GST regime due to their ongoing validity. The applicant submitted that institutions had applied for amendments to include references to GST notifications but were denied as the certificates were still valid.

3. Compliance with Notification Conditions:
The notifications in question require specific conditions to be met for the concessional rates to apply. These include:
- A certificate of registration with DSIR.
- A certificate from the head of the institution certifying that the goods are required for research purposes.
- A declaration that the goods will not be transferred or sold for five years from the date of installation (for certain institutions).

The applicant provided nine specimen DSIR certificates, some of which had expired, and others did not reference the relevant GST notifications. The authority noted that the applicant had not provided sufficient evidence that all conditions were met for all transactions.

Findings and Conclusion:
The authority concluded that the applicant could charge the concessional GST rates only if all conditions specified in the notifications were met. Specifically:
- The DSIR certificates must be current and reference the relevant GST notifications.
- Proper certificates from the head of the institution must be provided for each transaction.
- The goods must be supplied to eligible institutions as specified in the notifications.

The authority determined that the applicant could charge 5% GST in four specific cases where all conditions were satisfied, and proper certificates were produced. These cases involved the National Centre for Polar and Ocean Research, University of Delhi, Council of Scientific and Industrial Research CSIR-North East, and the Institute of Science & Technology.

Order:
The applicant is correct in charging 5% GST for supplies to the specified institutions only where all conditions mentioned in the relevant notifications are met, and proper certificates are provided. The ruling applies specifically to the four cases where the necessary conditions were satisfied.

Order Date: June 14, 2021
Order Number: GST-ARA 45/2019-20/B-15

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