9911796707
TMI Blog2018 (10) TMI 1869X X X X Extracts X X X X X X X X Extracts X X X X ..... of seeds for sowing under tariff heading 1209 which falls under zero percent tax slab. 2. Vide letter dt.29.09.2018, the applicant further submitted that they are engaged in the production and supply of Hybrid seeds vegetable and field crops. They have their own Research and Development setup, with a team of 60+ scientists and technicians, through new technologies in crop improvement so that agriculture becomes easier for the farmer community and saving natural resources. The company has research farms located at various parts of the country, to produce various hybrid varieties of seeds with better resistance and yield. The Company engages contract farming to produce and multiply the seeds and process the same at their processing units and packs and sells those seeds to the farmers for sowing. 3. That the applicant has got registered with the GST by virtue of migration from erstwhile VAT to GST. The applicant had registration under erstwhile VAT and Service tax as it was mandated under the said acts as Reverse charge was applicable irrespective of the nature of business for all corporate companies. 4. Brief description of the Operations * The Growers/Organisers are identified ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... G ONLY NIL RATE/EXEMPT SUPPLIES 22. (1) Every supplier shall be liable to be registered under this Act in the State or Union territory, other than special category States, from where he makes a taxable supply of goods or services or both, if his aggregate turnover in a financial year exceeds twenty lakh rupees: Provided that where such person makes taxable supplies of goods or services or both from any of the special category States, he shall be liable to be registered if his aggregate turnover in a financial year exceeds ten lakh rupees. (2) Every person who, on the day immediately preceding the appointed day, is registered or holds a licence under an existing law, shall be liable to be registered under this Act with effect from the appointed day. (3) Where a business carried on by a taxable person registered under this Act is transferred, whether on account of succession or otherwise, to another person as a going concern, the transferee or the successor, as the case may be, shall be liable to be registered with effect from the date of such transfer or succession. (4) Notwithstanding anything contained in sub-sections (1) and (3), in a case of transfer pursuant to sanction of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ered under this Act; (ix) persons who supply goods or services or both, other than supplies specified under sub-section (5) of section 9, through such electronic commerce operator who is required to collect tax at source under section 52; (x) every electronic commerce operator; (xi) every person supplying online information and database access or retrieval services from a place outside India to a person in India, other than a registered person; and (xii) such other person or class of persons as may be notified by the Government on the recommendations of the Council. 6.2. That from the above that Sec 23(1)(a) specifically exempts persons engaged in the business of making exempt / nil rate supplies from registration under the Act. This makes it clear that since there are no taxable supplies made by Company, Ascen Hyveg P ltd unswervingly fall under the definition of the above referred section. All the supplies made by the Company are sowing seeds which are exempt under the act and there are not taxable supplies." As regards RCM, it the worth to note that the Section 24 starts with the wordings, "Notwithstanding anything contained in sub-section (1) of Section 22", therefore ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ether assessee is liable to pay tax under RCM U/S 9(3) of the CGST Act, 2017 for transporting tax free goods? As per section 24 of the CGST Act, 2017, any person who is liable to pay taxes under reverse charge mechanism would be required to take compulsory registration under this Act. The recipient of goods and/or services is required to pay taxes under reverse charge mechanism on receipt of specified services as specified. Though there are certain goods as specified in the notification in respect of which no tax is payable by the recipient for services under reverse charge mechanism as recipient of services. As per Entry No. 21 of Notification No 12/2017-CTR as amended time to time, only services provided by a goods transport agency, by way of transport in a goods carriage of certain goods as transported are exempted which are defined below:- SI.No. Chapter, Section, Heading, Group or Service Code (Tariff) Description of Services Rate (percent) Condition 21 Heading 9965 or Heading 9967 Services provided by a goods transport agency, by way of transport in goods carriage of - (a) agricultural produce: (b) goods, where consideration charged for the transportation of goo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng the aforesaid goods from a Goods Transport Agency (GTA). 8.4. If reply to query number 8.2 is negative, whether registration is required under GST Act? As the answer to query number 8.2 is not negative, this question is not required to be answered. 8.5. Whether registration is required under GST Act, 2017 for interstate supply/sales of tax free goods? Section 23 of CGST Act, 2017 provides that any person engaged exclusively in the business of supplying goods or services or both that are not liable to tax or wholly exempt from tax under this Act or under the Integrated Goods and Services Tax Act shall not be liable to registration. Therefore, in case the applicant is engaged exclusively in supply of exempted goods [and also not receiving any taxable services liable to RCM under GST provisions], registration is not required under the CGST Act, 2017. 8.6 Whether GST registration can be surrendered if we are not liable to pay RCM us 9(3) of CGST Act 2017 and not liable to be registered under GST Act? It has been discussed in para 9.3. above, that the applicable is liable to pay GST under RCM, in terms of Section 9(3) of the CGST Act, 2017, they are liable to registered under t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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