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TMI Blog2024 (1) TMI 563X X X X Extracts X X X X X X X X Extracts X X X X ..... ASI VISWESWARA RAO, AND SRI SAHIL INAMDAR, MEMBER [ORDER UNDER SECTION 98(4) OF THE CENTRAL GOODS AND SERVICES TAX ACT, 2017 AND UNDER SECTION 98(4) OF THE TEALANGANA GOODS AND SERVICES TAX ACT, 2017.] ****** 1. M/s. Ramagundam Fertilizers And Chemicals Limited, RFCL Fertilizers City, RFCL Plant, Ramagundam, Karimnagar, Telangana- 505 210 (36AAHCR2335P1ZY) has filed an application in FORM GST ARA-01 under Section 97(1) of TGST Act, 2017 read with Rule 104 of CGST/TGST Rules. 2. At the outset, it is made clear that the provisions of both the CGST Act and the TGST Act are the same except for certain provisions. Therefore, unless a mention is specifically made to any dissimilar provisions, a reference to the CGST Act would also mean a reference to the same provision under the TGST Act. Further, for the purposes of this Advance Ruling, the expression GST Act would be a common reference to both CGST Act and TGST Act. 3. It is observed that the queries raised by the applicant fall within the ambit of Section 97 of the GST ACT. The Applicant enclosed copies of challans as proof of payment of Rs. 5,000/- under SGST and Rs. 5,000/- under CGST towards the fee for Advance Ruling. The Applican ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rom its suppliers. A relevant extract of the provision is reproduced for ease of reference: Section 51 - Tax deduction at source - (1) Notwithstanding anything to the contrary contained in this Act, the Government may mandate, - (a) a department or establishment of the Central Government or State Government; or (b) local authority; or (c) Governmental agencies; or (d) such persons or category of persons as may be notified by the Government on the recommendations of the Council, (Hereafter in this section referred to as the deductor ), to deduct tax at the rate of one per cent. from the payment made or credited to the supplier (hereafter in this section referred to as the deductee ) of taxable goods or services or both, where the total value of such supply, under a contract, exceeds two lakh and fifty thousand rupees. 4.5 The Government of India Vide Notification No. 33/2017-CGST (Rate) has notified the following persons for operability of Clause (d) of Section 51(1) as detailed above: a) an authority or a board or any other body, - a. set up by an Act of Parliament or a State Legislature; or b. established by any Government, with fifty-one percent or more participation by way of eq ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... h tax deduction is exempted under the 3rd proviso to Notification 50/2018 dt: 13-09-2018 which was inserted vide Notification No. 73/2018 Dt: 31.12.2018. 2. The Notification No. 73/2018 Dt: 31.12.2018 has inserted a 3rd provisio to Notification 50/2018 dt: 13-09-2018 as follows: In the said Notification, after the second proviso, the following proviso shall be inserted, namely Provided also that nothing in this notification shall apply to the supply of goods or services or both which takes place between one person to another person specified under clauses (a), (b), (c) and (d) of sub-section(1) of section 51 of the said Act. . 3. The applicant has further submitted the following arguments to claim that it is established by Government and hence qualifies to be an establishment of Government under sec 51(1) of the CGST Act: That Department of Fertilizers established by Ministry of Chemicals Fertilizers which is serving as a parent/governing body for fertilizer companies formed by Central Government which has released Handbook on notifications issued under Fertilizers policies . In the handbook, the Government has announced new investment policy (NIP-2012) to facilitate fresh investme ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... severally held by Public Sector Undertakings. That RFCL is a Joint Venture Company of National Fertilizers Limited (NFL), Engineers India Limited (EIL) and Fertilizer Corporation of India Limited (FCIL) (Promoters) with 26% equity each by NFL EL. FCIL has been granted 11% equity in terms of CCEA approval. Further, the remaining part of the shareholding is held by the State Government of Telangana and others. Name of the Entity % of Shares held Cumulative holdings Nature of the Entity National Fertilizer Limited 26 Central PSU Engineers India Limited 26 52 Central PSU Fertilizers Corporation of India Limited 11 63 Central PSU State Govt. of Telangana 11 74 State Govt. GAIL India Limited 14.3 87.3 Central PSU Foreign Investors 11.7 That in continuation to the above, the Board of directors are appointed by the shareholders of the Applicant which are public sector undertakings and the State Government. Further, the operations and decisions in the regular cse of business are handled by the Board appointed by the stakeholders (PSUs and Government). The aforementioned public sector undertakings are owned and controlled by the Central and State Governments and thereby the Central and the S ..... X X X X Extracts X X X X X X X X Extracts X X X X
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