GST excludes diesel supplied free of cost for coal extraction, so its value cannot enter transaction value for advance ruling.

Diesel supplied free of cost by a recipient to contractors for coal extraction was treated as outside the GST levy because diesel falls under Entry 54 of List II of the Seventh Schedule. As the commodity itself is excluded from GST, its value could not be brought into transaction value for advance ruling purposes under the CGST Act. The advance ruling authority therefore found the question beyond the GST framework and rejected the application.

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Issues: Whether diesel supplied free of cost by the recipient to contractors for coal extraction fell within the scope of GST and could be considered for determination of transaction value in advance ruling proceedings.

Analysis: Diesel is covered by Entry 54 of List II of the Seventh Schedule to the Constitution of India and is therefore excluded from GST levy. Since the commodity itself lies outside the GST regime, the question raised did not fall within the scope of Chapter XVII of the CGST Act, 2017 for determination under advance ruling jurisdiction.

Conclusion: The question was held to be outside the GST framework and the application was rejected.

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