Appeal dismissed, "Marg Sudharan Shulk" exempt from GST, "Abhivahan Shulk" taxed at 18%. Reverse charge not addressed.

The appeal was dismissed, upholding the decision that "Marg Sudharan Shulk" is exempt from GST, while "Abhivahan Shulk" is subject to GST at 18% under Service Code 9997. The issue of reverse charge mechanism was not addressed due to procedural constraints.

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Issues Involved:
1. Taxability of "Marg Sudharan Shulk" under GST.
2. Taxability of "Abhivahan Shulk" under GST.
3. Definition and scope of "service" under GST.
4. Applicability of reverse charge mechanism for GST on "Abhivahan Shulk".

Detailed Analysis:

1. Taxability of "Marg Sudharan Shulk" under GST:
The Advance Ruling Authority concluded that "Marg Sudharan Shulk," charged for the maintenance of forest roads, is exempt from GST. This conclusion was based on the provision that "services by way of access to a road or a bridge on payment of toll charges" are included in the list of exempted services under GST.

2. Taxability of "Abhivahan Shulk" under GST:
The Advance Ruling Authority determined that "Abhivahan Shulk," charged for the transit of forest produce, is subject to GST. The authority observed that this fee is charged based on the quantity and quality of the forest produce transported and is not akin to toll tax. Instead, it is a consideration for services provided by the forest department. Since these services are not listed as exempt under Chapter 99 of the GST Tariff, 2017, the "Abhivahan Shulk" is liable for GST at 18% under Service Code 9997, categorized as "other services."

3. Definition and Scope of "Service" under GST:
The appellant argued that "Abhivahan Shulk" should not be considered a service under Section 2(102) of the CGST Act, 2017, as it is a government fee collected under statutory authority. However, the appellate authority clarified that the definition of "services" is broad, encompassing anything other than goods, money, and securities. The fee collected for the transit of forest produce is considered a service since it provides specific benefits to those paying it, thus falling under the GST ambit.

4. Applicability of Reverse Charge Mechanism for GST on "Abhivahan Shulk":
The appellant contended that if "Abhivahan Shulk" is deemed a service, the GST should be payable by the recipient under the reverse charge mechanism as per Notification No. 13/2017-CT(R) dated 28.06.2017. However, the appellate authority noted that this issue was not part of the original application and was not examined by the Advance Ruling Authority. Therefore, it could not be considered at the appellate stage. The authority emphasized that the rules and procedures for the reverse charge mechanism are clear, and it is the responsibility of the assessee to determine their applicability.

Conclusion:
The appeal was dismissed, and the decision of the Authority on Advance Ruling for the State of Uttarakhand was upheld. The "Marg Sudharan Shulk" remains exempt from GST, while the "Abhivahan Shulk" is subject to GST at 18% under Service Code 9997. The issue of reverse charge mechanism was not addressed due to procedural constraints.

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