9911796707
TMI Blog2022 (1) TMI 1110X X X X Extracts X X X X X X X X Extracts X X X X ..... xtracted goods i.e. Lisa/Resin is the principal supply and the transportation' of the same to the Motor Head Depot is another supply and the transportation cannot be done separately, if there are no goods - since the consideration to be paid to the contractor is decided before the performance of said supply of services it is assumed that all the expenses incidental to said supply of composite supply is part of such consideration. Rate of tax - HELD THAT:- Tax rate of the principle supply will apply on the entire supply, since extracted goods i.e. Lisa/ Resin is the principal supply and the transportation of the same to the Motor Head Depot is another supply and the transportation cannot be done separately, if there are no goods. We further find that once the Lisa/ Resin is deposited at the motor head depot (godown), total control and supervision is under the applicant i.e. the ownership of the goods is with the applicant, all the expenses incurred till such deposit, becomes part of taxable value of such composite supply - applicable GST is payable by the contractor / individual permit holder at the time of supply. For transportation of Lisa/Resin (which is under total c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Present for the Applicant : Mr. Pankaj Chauhan, (Advocate) Concerned Officer : None Present for the Jurisdictional Officer : Ms. Preeti Manral Deputy Commissioner, Note:- Under Section. 100(1) of the Uttarakhand Goods and Services Tax Act, 2017. an appeal against this ruling lies before the appellate authority for advance ruling constituted under section- 99 of the Uttarakhand Goods and Services Tax Act, 2017, within a period of 30 days from the date of service of this order. PROCEEDINGS 1. This is an application under Sub-Section (1) of Section 97 of the Central Goods Service Tax Act, 2017 and Uttarakhand State Goods Service Tax Act, 2017 (hereinafter referred to as CGST/SGST Act) and the rules made there under filed by M/s Almora Van Prabhag (Divisional Forest Office, Almora) Forest Compound, Mall Road, Almora, Uttarakhand - 263601, (herein after referred to as the applicant ), a body of the State Government of Uttarakhand and registered with GSTIN-05AAALA1356K1ZF under the CGST Act, 2017 read with the provisions of the UGGST Act, 2017 (hereinafter referred to as 'the applicant'). 2. (i) The applicant is involved in the business of f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... odown) and all other incidental expenses are borne by the registered individual. At the time of deposit of extracted Lisa/Resin, at the Motor Road Depot (Godown), no bills are presented by the permit holder, only receipt for the same are issued by the applicant to the permit holder. After the receipt of extracted Lisa/Resin at the Motor Road Depot (Godown), total control and supervision is with the applicant. Payment to individual permit holder is done after full quantity of Lisa/Rosin received from all the divisions, are sold. Payment to individual permit holders is determined on the basis of average price of Lisa/ resin sold (through open auction) at the Rail Head Depot (Kathgodam). While making payments to individual permit holders, deductions of the applicant contribution @15%, Income tax TDS @ 2%, Expenditure of transportation from motor road to Rail Head Depot (Kathgodam) and Fines related to illegal cuts in trees (if any) are made. Under both the categories after the receipt of extracted Lisa/Resin at the Motor Road Depot (Godown), total control and supervision is under the applicant and also the transportation of Lisa/Resin collected at Motor Road Depot to Rail Head Depo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... icular thing done by the applicant with respect to any goods or services or both amounts to or results in a supply of goods or services or both within the meaning of that term. In the present case applicant has sought advance ruling on applicability of GST. Therefore, in terms of said section 97(2) the present application is hereby admitted. 6. Accordingly opportunity of personal hearing was granted to the applicant on 09.12.2021. Mr. Pankaj Chauhan, advocate and Shri Mahatim Yadav, DFO Almora, on behalf of the applicant department appeared for personal hearing on the said date and re-iterated the submission as filed with the application. Ms Preeti Manral, Deputy Commissioner, SGST-Dehradun, concerned officer from State Authority was also present during the hearing proceedings. She illustrated the relevant legal provisions and submitted that the case be decided as per law on merit. 7. We find that the applicant i.e. M/s Almora Van Prabhag (Divisional Forest Office, Almora) is a body of the State Government of Uttarakhand and registered with GSTIN-05AAALA1356K1ZF in Uttarakhand at Forest Compound, Mall Road, Almora, Uttarakhand - 263601 and in their application dated 23.11 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... roceed to decide the issues before us one by one. 10.2 a) We observe that the contractor is engaged in supply of goods i.e. Lisa/ Resin after extracting /tapping it from the Chir/Pine trees located on the reserved forest, van panchayat and civil forest. Thereafter, the contractor transports the extracted Lisa/ Resin to the Motor Road Depot (Godown), which is a supply of service. Tapping/ extraction of Lisa/Resin and its transportation to Motor Road Depot (Godown) is a composite supply and, hence applicable GST for composite supply is payable by the contractor. Tax rate of the principle supply will apply on the entire supply, since extracted goods i.e. Lisa/Resin is the principal supply and the transportation' of the same to the Motor Head Depot is another supply and the transportation cannot be done separately, if there are no goods. We further find that since the consideration to be paid to the contractor is decided before the performance of said supply of services it is assumed that all the expenses incidental to said supply of composite supply is part of such consideration. b) Likewise we observe that an individual permit holder is engaged in supply of goods i.e. Lisa/ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... issued before or at the time of removal of goods for supply to the recipient, where the supply involves movement of goods. However, in other cases, an invoice needs to be issued before or at the time of delivery of goods or while making goods available to the recipient. Hence time of supply in case of goods, will be earliest of the following dates, Date of issue of invoice by the supplier, If the invoice is not issued, then the last date on which the supplier is legally bound to issue the invoice with respect to the supply Date on which the supplier receives the payment. 10.6 Further we find that as per section 51 of the CGST Act, 2017, a department or establishment of the Central Government or State Government, local authority, Governmental agencies and such persons or category of persons as may be notified by the Government on the recommendations of the Council, tax has to be deducted @ 2% of the payment made to the supplier of taxable goods or services or both, where the total value of such supply, under a contract, exceeds two lakh and fifty thousand rupees (excluding the amount of central tax, State tax, Union territory tax, integrated tax and cess indicated ..... X X X X Extracts X X X X X X X X Extracts X X X X
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