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TMI Blog2021 (8) TMI 355X X X X Extracts X X X X X X X X Extracts X X X X ..... T 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 partnership firm registered under the Goods and Services Tax Act, 2017 and engaged in the business of execution of works contract relating to electrical works and electrical infrastructure. 3. The applicant has sought advance ruling in respect of the following question:- i. GST applicability of cost of the diesel incurred for running DG Set in the course of providing DG Rental Service? 4. Admissibility of the application:. The question is about "determination of the liability to pay tax on any goods or services or both;" and hence is admissible under Section 97(2)(e) of the CGST Act. BRIEF FACTS OF THE CA ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... was amended vide Bill No 26 of 2019, "consideration" includes,- (i) any amount that is payable for the taxable services provided or to be provided. (ii) any reimbursement expenditure or cost incurred charged by the service provider and charged in the course of providing or agreeing to provide a taxable service except in such circumstance and subject to such conditions as may be prescribed: Therefore section 67 prescribes for the valuation of the taxable services; it is being prescribed specifically in this section that consideration for a taxable service. 5.6 The applicant contended that the intention is always to include reimbursable expenditure in the value of the taxable service. However, in the case of Intercontinental Consultant ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... T @ 9% and KGST @ 9%) on reimbursement of diesel cost incurred for running DG Set by the recipient of the service. Meanwhile the recipient of the service is objecting to discharge taxes on reimbursement of diesel cost incurred for running DG Set. 10. Coming to the point of question raised by the applicant, as per Section 15(1) of the CGST Act, 2017- "the value of a supply of goods or services or both shall be the transaction value, which is the price actually paid or payable for the said supply of goods or services or both where the supplier and the recipient of the supply are not related and the price is the sole consideration for the supply". 11. In the instant case reimbursement of diesel cost incurred for running DG Set by the recip ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the reimbursement of diesel cost, the recipient is not paying for the diesel but for the services of DG Set, which is an integral part of the supply of DG Set rental service. There is no separate contract for supply of diesel and the invoice issued for the reimbursement of diesel cost is nothing but a supplementary invoice issued for the supply of rental service of DG Set. Hence, consideration for reimbursement of expenses as cost of the diesel for running of the DG Set is nothing but the additional consideration for the renting of DG Set and attracts CGST @ 9% and KGST @ 9%. 13. In view of the foregoing, we rule as follows RULING The cost of the diesel incurred for running DG Set in the course of providing DG Rental Service is nothing b ..... X X X X Extracts X X X X X X X X Extracts X X X X
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