Clarification on Customs Notifications and GST Rates for Specified Goods

The ruling clarified that Notification No-51/1996-Customs, as amended by Notification No-43/2017-Customs, applies to the import of specified equipment by eligible institutions but not to OEM suppliers. The authority cannot rule on the binding nature of GST Council decisions. The concessional rate of GST/IGST at 5% applies to specified goods, whether imported or indigenous. Appeals can be made to the Odisha State Appellate Authority for Advance Ruling within 30 days.

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Issues Involved:
1. Applicability of Notification No-51/1996-Customs, Dt. 23.07.1996 read with Notification No-43/2017-Customs, Dt: 30.06.2017 and Minutes of the 14th GST Council Decision Dt: 18th/19th May 2017 for specified imported equipment delivered to eligible institutions.
2. Binding nature of GST Council's decision granting exemption in the absence of corresponding notification by the Central/State Government.
3. Applicability of concessional rate of GST/IGST at 5% vide Notification No-45-CGST(Rate), Dt:14.11.2017 and Notification No-47-IGST(Rate), Dt:14.11.2017 for supply of specified indigenous equipment to eligible institutions.

Detailed Analysis:

1. Applicability of Notification No-51/1996-Customs and Notification No-43/2017-Customs:
The applicant sought clarification on whether the specified imported equipment delivered to eligible institutions is exempt from IGST under the mentioned notifications. The ruling clarified that Notification No-51/1996-Customs, Dt: 23.07.1996, as amended by Notification No-43/2017-Customs, Dt: 30.06.2017, is applicable to the applicant for the import of specified equipment. However, it does not extend to OEM suppliers of such imported equipment. The ruling emphasized that the exemption applies only to direct imports by eligible institutions and not to domestic supplies by OEM suppliers, who must charge IGST as per the prevailing rates.

2. Binding Nature of GST Council's Decision:
The applicant questioned whether the GST Council's decision to grant exemptions is binding on the department without corresponding notifications from the Central/State Government. The ruling stated that while the GST Council's decisions are binding on the government, the authority for advance ruling does not have the mandate to rule on this matter. The authority's scope is limited to the provisions prescribed in sub-section (2) of Section 97 of the OGST/CGST Act, and it cannot adjudicate on the binding nature of the GST Council's decisions.

3. Applicability of Concessional Rate of GST/IGST at 5%:
The applicant sought clarification on whether the concessional rate of GST/IGST at 5% applies to specified indigenous equipment supplied to eligible institutions. The ruling confirmed that the concessional rate of GST/IGST at 5% as per Notification No-45-CGST(Rate), Dt:14.11.2017 and Notification No-47-IGST(Rate), Dt:14.11.2017 applies to the specified goods listed in the notifications, regardless of whether they are imported or indigenous. The specified goods include scientific and technical instruments, apparatus, equipment, accessories, parts, consumables, live animals for experimental purposes, computer software, CD-ROMs, recorded magnetic tapes, microfilms, microfiches, and prototypes with a CIF value not exceeding fifty thousand rupees in a financial year.

Ruling:
1. The notifications are applicable to the applicant for the import of specified equipment but not to OEM suppliers of imported equipment.
2. The authority does not have the competence to rule on whether the GST Council's decision is binding without corresponding notifications.
3. The concessional rate of GST/IGST at 5% applies to the specified goods, whether imported or indigenous.

Appeal:
The applicant or the jurisdictional officer may appeal to the Odisha State Appellate Authority for Advance Ruling under Section 100 of the OGST/CGST Act, 2017 within 30 days from the date of receipt of the Advance Ruling.

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