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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 ..... very point as per the requirements of service recipient 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 (or) under SAC 9965 i.e., Transport of goods by road or under any other SAC code. (b) Whether the Clause no. 9 of the circular No. 177/09/2022-TRU issued by the CBIC is applicable to the applicant for the services provided as described in Article 2.1.(y) of the agreement for transportation of coal (mineral) from the coal stockyard located at mines to the Railway sliding or upto the delivery point as per the requirements of service recipient for a specified period and at an agreed price as mentioned in agreement. (c) What will be the applicable tax rate for the services provided as described in Article 2.1.(y) of the agreement for transportation of coal (mineral) from the coal stockyard located at mines to the Railway sliding or upto the delivery point as per the requirements of service recipient. 1.1 At the outset, we would like to make it clear that the provisions of both the CGST Act and the OGST Act are the same except for certain provisions. Therefore, unless a mention is sp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion issued by CBIC vide clause no. 9 in the circular No. 177/09/2022-TRU, contended that the service of transport of minerals from mining pit head to railway siding, beneficiation plant etc., by vehicles deployed with operator for a specific duration of time is treated as "Renting of transport vehicles with operator" Under "SAC 996601" and applicable rate of GST is @ 12% on such transportation services . 2.6 The Applicant also submitted that as per the recommendation of the GST Council, 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. 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%. 3.0 The personal hearing was fixed on 23.04.2024 under due intimation to the Applicant, the jurisdictional officer of State GST 86 jurisdictional officer of Central GST (intimated through their respective Commissionerat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cidental costs incurred during the transportation services are under the scope of the Applicant as NALCO will be pay the price for transportation on per/ton basis. 4.3 The issue before us to decide about the taxability of the works/services with respect to transportation of coal located at mines to the railway siding or to the delivery point as per the requirements of recipient of service and applicable rate of GST on the said services. We see that the said issue has been clarified by GST Council in its 47th meeting held on 28th and 29th June, 2022 and necessary clarification in this regard are enumerated in Clause 9 of Circular No. 177/09/2022-TRU dated 03.08.2022. So, before proceeding to decide the issue, it is imperative for us to discuss the relevant clause of Circular No. 177/09/2022-TRU dated 03.08.2022. The relevant portion of the circular is reproduced as under: "9. Taxability and applicable rate of GST on transport of minerals from mining pit head to railway siding, beneficiation plant etc., by vehicles deployed with driver for a specific duration of time. 9.1 Representations have been received to clarify the taxability of transport of minerals within a mining area, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 2017. On such rental services of goods carriages where the cost of fuel is 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%. 4.5 In view of the above circular and discussions, we are of the considered view that transportation of coal (minerals) within a mining area say from mining pit head or coal stockyard located at 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%. 5.0 We pass the following order: Q.1 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 delivery point as per the requirements of service recipient 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 Vehic ..... 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