9911796707
TMI Blog2019 (10) TMI 569X X X X Extracts X X X X X X X X Extracts X X X X ..... AAAK1110G1Z7, has filed an application for Advance Ruling under Section 97 of CGST Act, 2017 read with Rule 104 of CGST Rules 2017, and Section 97 of KGST Act, 2017 read with Rule 104 of KGST Rules 2017, in FORM GST ARA-01 discharging the fee of Rs. 5,000/- each under the CGST Act and the KGST Act. 2. The applicant is a registered society under Co-operative Society Act 1959 in Karnataka and is engaged in processing of milk and milk products wherein its district co-operative unions are shareholders of the organizations, which are registered under the Goods and Services Act, 2017. The applicant has sought advance ruling in respect of the following question: "Whether KMF is liable to deduct GST TDS under section 51 of CGST Act on the paymen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he attention to the Notification No.33/2017 - Central Tax dated 15-09-2017 and Notification No. 50/2018-Central Tax dated 13-09-2018 and presumes that they may be a government entity. e. Further the applicant has also stated that they are not established by the central government or the state government or a local authority under the Societies Registration Act, 1860. PERSONAL HEARING: / PROCEEDINGS HELD ON 17.11.2018. 4. Sri Lokesh Reddy, Chartered Accountant and duly authorized representative of the applicant appeared for personal hearing proceedings held on 17.11.2018 & reiterated the facts narrated in their application. The applicant wanted to know whether they are a Government Entity and if so, whether they are liable to deduct GST ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ntral Tax dated 13.09.2018, mandates certain persons to undertake TDS deduction. We draw attention to Sub-section (1) of Section 51 of the CGST Act 2017, which reads as under: "51. Tax deduction at source. - (1) Notwithstanding anything to the contrary contained in this Act, the Government may mandate, - (a) A department or establishment of the Central Government or State Government; or (b) local authority; or (c) Governmental agencies; or (d) such persons or category of persons as may be notified by the Government on the recommendations of the Council, (hereafter in this section referred to as "the deductor") to deduct tax at the rate of one per cent from the payment made or credited to the supplier (hereafter in this section ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ies under the Ministry of Defence, other than the authorities specified in Annexure-A and their offices, with effect from the 1st day of October, 2018." 5.7 Later the Notification No. 50 /2018 - Central Tax dated 13-09-2018 was amended by inserting another proviso vide Notification No.61/2018 -Central Tax dated 05-11-2018 and the second proviso reads as under: "Provided further that nothing in this notification shall apply to the supply of goods or services or both from a public sector undertaking to another public sector undertaking, whether or not a distinct person, with effect from the 1st day of October, 2018". 5.8 Further, the Notification No.73/2018- Central Tax dated 31.12.2018 amended the Notification No. 50/2018 - Central Tax d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ifty-one percent or more participation by way of equity or control, to carry out any function. c. The applicant has not been established by the Central Government or the State Government or a Local Authority under the Societies Registration Act, 1860 (21 of 1860); d. The Applicant is not a Public sector undertaking The applicant is a co-operative society registered under the Karnataka Co-operative Societies Act, 1959 and the applicant states that they are not registered under Societies Act, 1860. Hence the applicant is not a notified person under clause (d) of section 51(1). 5.11 Now we proceed to examine the only left over clause (c) of the Section 51(1) of the CGST Act 2017 i.e. whether the applicant is covered under "Governmental A ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
