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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 ..... cations, such as the Applicant. In spite of that, such preceding import or the intent behind such import will not alter the nature of the transactions - 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. 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 beneficiary is the specified eligible institutions such as the Applicant but not the OEM suppliers. The said notification is restricted to the public funded and non-commercial research institutions and I.I.T. etc. So, by any stretch of the imagination, the said notification read with notification no. 43/2017-customs dated 30.06.2017 cannot be extended to the OEM suppliers. Whether the decision of the GST Council granting the exemption is binding on the Department in the absence of non-issuance of corres ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Campus, Govt. ITI, Engineering School Road, Berhampur, Odisha-760010 have filed an application on 06.12.2018 under Section 97 of CGST Act, 2017 OGST Act, 2017 read with Rule 104 of CGST Rules 2017 OGST Rules, 2017 in Form GST ARA-01 seeking an Advance Ruling on Applicability of Notification issued under the provisions of GST Act . The Applicant enclosed copies of challans as proof of payment of ₹ 5, 000/- for SGST bearing CIN No. SBIN18112100021878 dated 12.11.2018 and ₹ 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: 30 6.2017 end Minutes of the 14 th GST Council Decision Dt: 18th. 119th. May,2017 is applicable for specified Imported Equipments d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ereon under sub-section (7) of Section-3 for the words and figures additional duty leviable thereon under Section-3 . 3.7 It is importing Scientific Equipment s either directly from Original Equipment Manufacturer or through the Agent of the OEM suppliers in India. In case of direct import, the Applicant is availing concessional Customs Duty and exemption of IGST as per NN-43/2017-Customs, Dt:30.06.2017. 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 Appli ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g on the questions / issues raised the Applicant s understanding/interpretation of law in respect of the issue. 6.1.0 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: 30.06.2017 and Minutes of the 14 th 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, ; 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 ef ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ceding import or the intent behind such import will not alter the nature of the transactions. In other words, there are two consecutive transactions such as i) import of equipments by the OEM suppliers of his own and ii) supply of such equipments to some pre-determined or post determined Research Institutions who otherwise qualify for IGST exemption on imports. In the aforesaid case, for the import of equipments by the OEM supplier IGST will be charged under Proviso to Section 5(1) of 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 ca ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... itutions subject to the conditions as specified in the corresponding entry in column (4) Of the said notification. The said notifications do not distinguish between imported and indigenous goods. The specified goods are (a) Scientific and technical instruments, apparatus, equipment (including computers); (b) accessories, parts, consumables and live animals (for experimental purposes); (c) Computer software, Compact Disc Read Only Memory (CDROM),recorded magnetic tapes, microfilms, microfiches; (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 t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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