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TMI Blog2019 (2) TMI 1526X X X X Extracts X X X X X X X X Extracts X X X X ..... of challans as proof of payment of Rs. 5, 000/- for SGST bearing CIN No. SBIN18112100021878 dated 12.11.2018 and Rs. 5000/- for CGST Vide CIN No. SBIN18112100081112 towards the fee for Advance Ruling. The Applicant has declared that the question raised in the application has neither been decided by nor is pending before any authority under any provisions of the GST Act. The jurisdictional officer concerned raised no objection to the admission of the application. The application is therefore, admitted. 2.0 Ruling is sought for in respect of the following questions :- a) "Whether the Notification No-51/1996-Customs, Dt. 23.07.1996 read with Notification No-43/2017-Customs, Dt: 30ß6.2017 end Minutes of the 14th GST Council Decision Dt: 18th. 119th. May,2017 is applicable for specified Imported Equipments delivered to the Eligible Institutions and the Applicant is not liable to pay the IGST charged on such imported Equipments by the OEM suppliers of imported equipment," and, b) "Whether the decision of the GST Council granting the exemption is binding on the Department in the absence of non-issuance of corresponding Notification by the Central/State Government to give effect t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... However, in case the same imported Equipments are procured through the OEM Agents in India, the Applicant is denied with the IGST exemption by the OEM Suppliers due to non-issuance of any specific exemption notification by the Central Government under the IGST Act to give effect to the decision of the 14th. GST Council Meeting Dt: 18/19 May, 2017 exempting IGST for the imported equipment's delivered to the eligible Institutions. 3.8. In the absence of corresponding Notification under the IGST Act, 2017 by the Central Government, the OEM Suppliers of such Imported Equipments supplied to the Applicant are charging IGST Rate of 28% from 01.07.2017 and IGST Rate of 5% with effect from Dt:14.11.2017 following the NN-45-CGST-Rate and NN-47-lGST-Rate, 14.11.2017. 4.0 Applicants Interpretation and understanding. 4.1 The Applicant is of the view that Notification No-51/1996-Customs, Dt:23.07.1996 and Notification No-43/2017-Customs, Dt:30.06.2017 read with Minutes of the 14th GST Council Meeting held on Dt:18th./19th May,2017, 'GST Exemption on Specified Equipments to Specified Institutions should be applicable both on direct import of such Equipments by the specified institutions as w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Institutions and the Applicant is not liable to pay the IGST charged on such imported Equipments by the OEM suppliers of imported equipment,"; b) "Whether the decision of the GST Council granting the exemption is binding on the Department in the absence of non-issuance of corresponding Notification by the Central/State Government to give effect to such decision of the Council," and c) 'Whether the concessional rate of GST/IGST at the 5% vide Notification No-45-CGST(Rate), DI 14.11.2017 and Notification No-47-lGST(Rate), Dt: 14.11.2017 are applicable only for supply of specified Indigenous Equipments to the eligible Institutions fulfilling conditions as specified under Column-(4) of the said notification with effect from 15.11.2017." 6.1.2 The jurisdictional officer of SGST has stated that the application filed by the Applicant is not coming under the purview of the Advance Ruling Authority as the above cited notifications relate to the Customs Acts and it would not come under the ambit of Authority in terms of provisions made under Section 97 of the OGST Act. The objection from the State jurisdictional officer is not maintainable for the reason that Section 20 (xviii) of the ' ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the IGST Act, since the said OEM supplier is not entitled for the exemption provided in the Notifications under consideration. On the subsequent domestic transaction, there will be levy of either IGST or CGST and SGST depending on the nature of the supply transaction as per the location of the supplier. In both the cases, the liability to pay GST is on the supplier and not on the Applicant. In the absence of liability there cannot be a claim for exemption. The Applicant can avail the exemption benefit only if it goes for direct import or purchase before the goods being imported into the country cross the Customs frontier of India. In that case, the 'GST liability will be on the importer (in this case the Applicant) and exemption from the said liability can be claimed and availed. The Applicant cannot claim exemption from the liability of another taxable person. 6.1.5 Further, Notification No. 51/96-customs dated 23.07.1996 is restricted to importers like Public funded research institution or a university or an Indian Institute of Technology or Indian Institute of Science, Bangalore or a Regional Engineering College, other than a hospital. In the instant case, the intended b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (d) proto-types, the C.I.F. value of which does not exceed rupees fifty thousand in a financial year. Therefore, concessional rate of IGST at 5%, CGST @ 2.5% and SGST @2.5% vide the aforesaid Notifications is applicable to supply of all the specified goods as mentioned above whether imported or indigenous. RULING In view of the foregoing discussion, we pass the following 1. Notification No-51/1996-Customs, dated 23.07.1996 read with Notification No-43/2017-Customs dated 30.06.2017 and Minutes of the 14th.GST Council Decision dated 18th./19th. May, 2017 is applicable to the Applicant for import of specified Equipments as listed under column (3) of the aforesaid notifications and the said notifications are not applicable to the OEM suppliers of imported equipment. 2. The scope of issuing a ruling u/s 98 of the OGST/CGST Act is limited to the extent prescribed in sub-section (2) of Section 97 of the OGST/CGST Act. A ruling on whether the decision Of the GST Council granting the exemption is binding on the Department in the absence of non-issuance of corresponding Notification by the Central/State Government is not within the competence and mandate of the Authority of Advance Rulin ..... X X X X Extracts X X X X X X X X Extracts X X X X
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