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TMI Blog2023 (1) TMI 836X X X X Extracts X X X X X X X X Extracts X X X X ..... ally, the said services fall under SAC 999113 (Public administrative services related to the more efficient operation of business). Hence, if the supplier i.e., Forest department is not registered under provisions of GST, the applicant shall pay tax on reverse charge basis as per Entry 5 of Notification No. 13/2017- central Tax (Rate) dated 28-06-2017. Social forestry is the management of forests for the benefit of local communities. Social forestry includes a range of activities associated with forest management, protection, and afforestation with the objective of rural, environmental, and social well-being - The permit charges collected by forest department is used by the forest officials keep a watch on the mining activity and also to assess the quantity and type of mineral being quarried to carry out survey and also keep constant watch on the movement of the produce , and is not related to Social forestry or farm forestry. Hence, the contention of the applicant that the service provided is in relation to Farm Forestry and social forestry and is exempted from tax as per notification no 12/2017 is untenable. - AAAR.COM/08/2022 Order-in-Appeal No. AAAR/14/2022 - - - Dated:- 3 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oal. Under rule (3) of State Forest produce transit rules they are liable to pay a certain amount to move the mined coal through the forest area as permit fee at the rate of Rs. 10 per ton of coal transported. The applicant is desirous of ascertaining whether GST is attracted on reverse charge on this amount paid to the Forest department. 2. The applicant filed an appeal before the lower authority seeking advance ruling on the following questions. (1) Whether, in the facts and circumstances of the case, the Applicant is obliged to pay GST on the forest permit fee paid by it under reverse charge mechanism? (2) Alternatively, if GST is payable on forest permit fee paid by the Applicant, can services received by the Applicant be classifiable under heading 9973 of Notification No. 11/2017 Central Tax (Rate) dated 28th June, 2017 and thus be exigible to a lower rate of tax for the period prior to 01-01-2019? BRIEF FACTS: 3. After due Process of Law, the lower authority, vide its orders No. 30/2022, dt.07.06.2022, has given ruling as under: Question Ruling 1. Whether, in the facts and circumstances of t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cted is mentioned in Para 2 of G.O Ms No 35 Environment forests science Technology (FOR.I) Department dated 06-02-2010, which is extracted hereunder: .....2. Principal chief conservator of Forests , Andhra Pradesh , Hyderabad in the reference 2nd cited above , has stated that to keep a watch on the mining activity and also to assess the quantity and type of mineral being quarried ,the forest officials have to carry out survey and also keep constant watch on the movement of the produce. In view of the increased workload and staff and to augment the forest revenue commensurate with the cost of the product mined the rates of the permits are being proposed for enhancement..... As per Rule 3 of Andhra Pradesh Forest Produce Transit Rules,1970 No forest produce shall be moved into or from or within the State by land or water, unless such produce is accompanied by a permit: 3. No forest produce shall be moved into or from or within the State by land or water, unless such produce is accompanied by a permit there for issued under Rule 5 and produced for check immediately on demand: Provided that where the forest produce is imported into the State from any other State ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... iv. administrative services provided by government offices, bureaux and programme units concerning solid fuel, including regulations concerning their exploitation or conservation; petroleum and natural gas; mineral fuel; nuclear and non-commercial fuel, including such fuels as alcohol, wood and wood waste, etc. Therefore the supply of permits by forest department is taxable @ 9% SGST and CGST each under SAC code 9991 (Public administration and other services provided to the community as a whole; compulsory social security services) falling under Entry 29 to Notification No: 11/2017 -CT(R), Dt: 28-06-217. More specifically, the said services fall under SAC 999113 (Public administrative services related to the more efficient operation of business). Hence, if the supplier i.e., Forest department is not registered under provisions of GST, the applicant shall pay tax on reverse charge basis as per Entry 5 of Notification No. 13/2017- central Tax (Rate) dated 28-06-2017. The applicant also contended that the Notification no 12/2017 exempts any service provided by central government /State government in respect of functions entrusted to Panchayat under Article 243G of the cons ..... X X X X Extracts X X X X X X X X Extracts X X X X
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