2018 (6) TMI 464 - AAR - GST

Scientific Instrument Supplies to Research Institution Denied Concessional Tax Rates Under Specific Notification Requirements

IN RE: M/s CR Enterprises

Tax Authority Ruling: Research Institution Supply CaseThe SC ruled that the applicant's scientific and technical instrument supplies to a government ... Concessional Rate of GST - N/N. 45/2017 (Central Tax Rate), dated 14th November, 2017 and N/N. 47/2017 (Integrated TAX-Rate), dated 14th November 2017 - supply of goods like scientific and technical instruments - Adoptability of notification to their supplies - Whether the supplies, made to SRI HARI KOTA HIGH ALTITUTDE RANGE (SHAR.) I SARISH DHAWAN SPACE CENTRE located at Sri Hari Kata, Andhra Pradesh, are eligible for concessional rate of tax as per N/N. 45/2017 (Central Tax Rate), dated 14th November, 2017 and N/N. 47/2017 (Integrated TAX-Rate), dated 14th November 2017? Held that:- As seen from the copy of the certificates Issued by the Satish Dhawan Space Center (SHAR), it is understood that the said Institution falls under ' Public funded research institution'. As per the certificate it Is also mentioned that the said institution is under the administrative control of Department of Space, Government of India. Ruling:- The goods intended to be supplied by the applicant to M/s SDSC are not covered under Notification 45/2017-Central Tax (Rate), dated 14.11.2017 and accordingly, the concessional rate is not applicable. Issues:- Eligibility for concessional tax rate on supplies made to a specific institution.Analysis:The case involved an application seeking an advance ruling on the adoptability of a notification to supplies made to a specific institution. The applicant, engaged in supplying scientific and technical instruments, inquired about the eligibility for concessional tax rates for supplies to a research institution. The application was forwarded to jurisdictional officers for remarks as per the relevant Act. A personal hearing was conducted where the applicant's representative submitted necessary documents related to the supplies intended for the institution.The ruling authority examined the application and the certificates issued by the institution to which supplies were intended. The institution was identified as a public funded research institution under the administrative control of the Department of Space, Government of India. The authority referred to a specific notification providing concessional rates for goods supplied to such institutions and outlined the conditions for eligibility. However, upon reviewing the list of goods intended for supply by the applicant, it was found that they did not fall under the categories specified in the notification for concessional rates.Therefore, after a thorough examination of the issue, the ruling was delivered stating that the goods intended for supply by the applicant to the institution were not covered under the relevant notification, and hence, the concessional tax rate was deemed not applicable to the supplies in question.