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TMI Blog2024 (7) TMI 978X X X X Extracts X X X X X X X X Extracts X X X X ..... t mines to railway siding, beneficiation plant etc for a specified period and at an agreed price as mentioned in the agreement will be classified under SAC 9966 i.e., Renting of Transport Vehicles and for that the applicable tax rate is 12%. - SRI ABHAY GUPTA. AND SRI NIHAR RANJAN NAYAK, MEMBER Present for the Applicant in the Personal hearing. Sri Prakhyat Surapaneni, CA Subject: M/s. Utkal Coal Mining India Private Limited (herein after referred to as the 'Applicant') having principal place of business/registered office/corresponding address at D.NO. 386/110, PLOT NO.43/B/20, MISHRA PADA, ANGUL, ODISHA, 759122 bearing GSTIN 21AADCU0404G1Z3 has filed an application for advance ruling under Section 97 of CGST Act, 2017 and Section 97 of the OGST Act, 2017 in FORM GST ARA-01 discharging fee of Rs. 5,000/- each under the CGST Act and the SGST Act. 1.0 The Applicant has sought ruling in respect of the following questions: (a) Whether the services provided by the applicant as described in Article 2.1.(y) of the agreement entered between the applicant and NALCO for transportation of coal (mineral) from the coal stockyard located at mines to the Railway sliding or up to the del ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ding. Further upon commissioning of the proposed MCRL railway siding, MDO shall convey the coal from the coal stockyard upto the rapid loading silo of proposed MCRL railway siding and load the coal into wagons for despatch to the delivery point. In the event MCRL railway siding does not get commissioned, the coal produced from mine shall continue to be transported to kerjanga railway siding. MDO shall be responsible to transport the coal produced from the mines to kerjanga railway siding at the agreed rates as per the coal mining agreement. Further, in the event kerjanga railway siding does not get commissioned, coal from the coal stockyard shall be transported by the MDO through road upto the delivery point at agreed rates of transportation charges as per the coal mining Agreement. Necessary permissions, approvals and clearances for transportation of coal from mines to delivery point shall be obtained by MDO for the same. 2.4 The Applicant submitted that as per the CMA the price for the coal transportation is to be paid by NALCO per Ton of coal delivered and the entire costs including diesel is in the scope of Applicant. 2.5 The Applicant relies on the clarification issued by CBIC ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s with operator Under SAC 996601 and applicable rate of GST is @ 12%. The Applicant in support of its submission/contention, relies on the clarification issued by the CBIC vide clause no. 9 in the circular No. 177/09/2022-TRU GST dated 03.08.2022. 4.2 The Issue was examined in detail. It is seen that the Applicant has entered into a Coal Mining Agreement (CMA) with NALCO on 08.03.2022 as a Mine Developer and Operator (MDO). The CMA lays down the scope of work of the Applicant which includes multiple activities/services like removal of Overburden Mining of coal, building infrastructures, loading of coal into vehicles, transportation of coal from the coal stock yard to the railway siding's and mine-closure activities and others. Out of the said activities/services, one of the activity is to provide service of transportation of coal (minerals) from stockyard located at mines to the railway siding or to the delivery point as per the requirements of recipient of service (NALCO) through vehicles (as mentioned under Article 2-scope of the project, clause y of the agreement). It is also seen that the cost of diesel, operator's salary and other incidental costs incurred during the t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... supplying the service by way of transport of goods. 9.4 Accordingly, as recommended by the GST Council, it is clarified that such renting of trucks and other freight vehicles with driver for a period of time is a service of renting of transport vehicles with operator falling under Heading 9966 and not service of transportation of goods by road. This being so, it is not eligible for exemption under SI. No. 18 of notification No. 12/2017-Central Tax (Rate) dated 28.06.201 7. On such rental services of goods carriages where the cost of fuel is in included in the consideration charged from the recipient of service, GST rate has been reduced from 18% to 12% with effect from 18.07.2022. Prior to 18.07.2022, it attracted GST at the rate of 18% . 4.4 In the said circular, it has been clarified that transport of minerals within a mining area by vehicles deployed with drivers would be a service of renting of transport vehicles with operator falling under Heading 9966 and not service of transportation of goods by road. This being so, it is not eligible for exemption under SI. No. 18 of notification No. 12/2017-Central Tax (Rate) dated 28.06.2017. On such rental services of goods carriages wh ..... X X X X Extracts X X X X X X X X Extracts X X X X
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