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TMI Blog2020 (3) TMI 189X X X X Extracts X X X X X X X X Extracts X X X X ..... p; applicability of GST rate on security forfeited by Uttarakhand Forest Corporation. (c) refund of GST on supply turned into bad debts and supply lost/destroyed in transit. (d) applicability of GST on mandi fees on local purchase of wood and whether the same is covered under Reverse Charge Mechanism (hereinafter referred to as RCM) in terms of Section 9(3) of the Act. Whether exemption can be claimed if amount of mandi fee is below Rs. 5,000/- in individual consignment. (e) applicability of GST on penalty. 2. Advance Ruling under GST means a decision provided by the authority or the appellate authority to an applicant on matters or on questions specified in sub-section (2) of Section 97 or sub-section (1) of Sectio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n the said date and reiterated the submissions already filed with the application. He also invited attention to para 8 of Circular No. 80, dated 31-12-2018. Ms. Preeti Manral, Deputy Commissioner, SGST-Dehradun, concerned officer appointed by the State Authority, also present during the hearing proceedings. 6. From the record submitted by the applicant we find that applicant is registered in Uttarakhand with GSTIN Bearing No. 05AAACP4522HIZS and are engaged in the manufacturing of plywood, block board and flush doors falling under HSN 4412 31 90, 4412 94 00 & 4418 2010 respectively. Before proceeding in the present case, we would first go through the submissions filed by the applicant and the same is summarized as under : (i) in t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... proceed by taking the issue one by one : (A) Applicability of GST rate and HSN/classification of wood scrap. (A-1) In this context we find that Chapter 44 of the GST Tariff deals with "wood and articles of wood; wood charcoal". Chapter Heading 4401 further deals with fuel woods, in logs, in billets, in twigs, in faggots or in similar form; wood in chips or particles; sawdust and wood waste and scrap, whether or not agglomerated in logs, briquettes, pellets or similar forms. (A.2) On perusal of Chapter Heading 4401 of the GST Tariff we observe as under : (i) Fuel wood is classified under sub-heading code 4401 11 (coniferous) or 4401 12 (non-coniferous) but it is generally in the form of short pieces of logs, split logs or ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r, barter, exchange, licence, rental, lease or disposal made or agreed to be made for a consideration by a person in the course or furtherance of business; (b) import of services for a consideration whether or not in the course or furtherance of business; (c) the activities specified in Schedule I, made or agreed to be made without a consideration; and (d) the activities to be treated as supply of goods or supply of services as referred to in Schedule II. (B.2) Section 7 of the Act was further amended on 29-8-2018 by the Central Goods and Service Tax (Amendment) Act, 2018. The relevant portion of the same is reproduced as under : (a) in sub-section (1), - (i) in clause (b), after the wo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hat it covers all forms of supply of goods or services made for a consideration by a person in the course or furtherance of business. In this context we observe that supply of goods viz. wood, in consideration of payment is one set of mutual transactions and forfeiture of an amount for not depositing the balance amount for the wood purchased is another set of mutual transactions. Thus indeed there is supply of goods as well as supply of services also. Therefore it satisfies the conditions of Section 7(1)(a) of the Act. Now comes the test in terms of Schedule II appended to the Act in respect of forfeited amount. We find that the agreement for tolerating an act or situation which is unable to deposit balance amount for the wood purchased is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... bruary 2019, wood has not been specified as a -category of goods received from an unregistered supplier on which the tax is to be paid on the reverse charge basis. Moreover prior to 1st February, 2019, in pursuance of the provision to tax the supply of taxable goods or services or both by an unregistered supplier to a registered person on reverse charge basis, an exemption to the extent of the aggregate value of such supplies of goods or services or both up to five thousand rupees in a day was made effective from the 1st of July, 2017. The said restriction of five thousand rupees was withdrawn on 13th October, 2017 and a blanket exemption was provided till the 31st March, 2018 which was further extended to 30th September, 2019. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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