9911796707
TMI Blog2019 (8) TMI 1285X X X X Extracts X X X X X X X X Extracts X X X X ..... ervice Tax Act and the Tamil Nadu Goods and Service Tax Act are the same except for certain provisions. Therefore, unless a mention is specifically made to such dissimilar provisions, a reference to the Central Goods and Service Tax Act would also mean a reference to the same provisions under the Tamil Nadu Goods and Service Tax Act. M/s. Chennai Port Trust, No. 1, Rajaji Salai, Chennai-600001, (hereinafter called the Applicant) is engaged in supply of port services and incidental supply of goods like disposal of discarded assets. They are registered under GST with GSTIN 33AAALC0025B1Z9. They have preferred an Application seeking Advance Ruling on the following question. Whether the amount received on or after 01.07.2017 towards interest ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... interest, late fee, penalty by the applicant. The applicant has stated that their interpretation of law is that the amounts received on or after 01.07.2017 towards interest, late fee penalty relating to the services other than Continuous Supply of Services(CSS) rendered before 01.07.2017 are not liable to GST; and the amounts received on or after 01.07.2017 towards interest, late fee penalty relating to CSS rendered by them before 01.07.2017 are liable to GST as per the Time of Supply as provided in section 13(6) of the GST Act. 4.1 The Applicant was granted personal hearing on 24.09.2018. The applicant represented through authorized representative. The submissions during the hearing are as under: The documents for receiving interest, l ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... isdictional Officer on the questions raised by the applicant in the ARA application are detailed below: The applicant has not stated whether such late fee, interest are levied before 01.07.2017 and such penalty and late fee are reported under the existing law. Had the applicant declared such late fee and penalty under the existing law such receipts have to be dealt under the existing law even though payments were received after 01.07.2017 even though the tenancy agreement is continuous and the term continuous supply of service is effective from 01.07.2017 and the penalty and late fee were levied under the existing law. 7. We have carefully considered the submissions made by the applicant in the advance ruling application, the additional ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nt, it is seen that the question relates to the services rendered by the applicant in Pre-GST regime, i.e., during service tax regime of taxation. We find that the applicant leases/ rents the port space and collects lease rentals. The applicant as per the license/ rent agreement/ contracts collect lease rental charges and in cases of belated payment/ default, late-fee/ penal interest as stipulated in the contracts are collected by them, for which a separate invoice (RCA) is raised. It is stated that the invoices have been raised during the service tax regime and service tax paid but the applicant has received interest, late fee, penalty in the current period, i.e., under GST regime of taxation as the consideration was received belatedly. 8 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... use (b) do not apply: As per the above the provisions of Section 13 of CGST and TNGST Act come into effect from 1st July 2017. From 1st July 2017 onwards, the liability to pay GST on supply of services is determined by the time of supply in Section 13. In the instant case, the applicant has stated that the invoices for the supply of services have been issued before 1st July 2017 but the payment of the consideration was received late i.e. after the issue of invoice. Hence, the date of issue of invoice which is earlier is the time of supply as per Section 13(2) (a) of CGST and TNGST Act. In this case the time of supply would be before 1st July 2017 and accordingly the supply of original service of leasing/ renting is not covered under GST. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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