TaxTMI 
TaxTMI 
2018 (10) TMI 346
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....and seeks an advance ruling on the question, details of which given below as: (a). Nature of Road Usage charges and Government Fee paid by applicant in respect of following services: Head Description of activity Nature Government Body Road Usage charges Abhivahan Sulk Road Usage charges paid to the Govt.(Services) Tarai Paschimi, Van Prabhag, Ramnagar (Nainital) Road Usage charges Government Fee Fee for Ambient Air Monitoring Pollution expenses paid to the Govt. (Services) U.K. Environment Protection Control Board, Haldwani Khanij Sampada Sulk Pollution & Mining charges paid to the Govt. Dist. Geology & Mining Dept. (U.K.) Motor Vehicle Tax Amount paid to State Transport Dept. (Services) ARTO, Kashipur, State Transport Department (b). Road Usage charges and Government Fee paid by the applicant to multiple Government Departments (tabled in sl.no. a above) falls within the category of Exempted Government Services as mentioned under s.no. 4, 5, 6, 9, 23 & 47 of the Exemption Notification and accordingly no GST is require to be paid on such charges under s.no.5 of the RCM notification. (c). GST applicability on penalty p....
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....18. Shri Ashwarya Sharma (Advocate) appeared for personal hearing on 28.08.2018 and submitted documents describing therein exact nature of work beine undertaken. Nobody appeared from the side of Revenue for the hearing. 5. In the present application, applicant has requested for advance ruling on different issues which are mentioned in (b) (c) & (e) of the Point no.1 above and are now discuss as under: 5.1 Road Usage charges and Government Fee paid by the applicant to multiple Government Departments (tabled below) whether falls within the category of Exempted Government Services as mentioned under s.nos. 4, 5, 6, 9, 23 & 47 of the Exemption Notification: 6. In View of the above, we order as under: Head Description of activity Nature Government Body Road Usage charges Abhivahan Sulk Road Usage charges paid to the Govt.(Services) Tarai Paschimi, Van Prabhag, Ramnagar(Nainital) Road Usage charges Government Fee Fee for Ambient Air Monitoring Pollution expenses paid to the Govt.(Services) U.K Environment Protection Control Poard, Haldwani Khanij Sampada Sulk Pollution & Mining charges paid to the Govt. Dist. Geology & Mining Dept.....
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.... "Abhivahan Shulk" cannot be termed as toll tax and rather is a form of consideration received by the applicant in lieu of services provided to the person for carrying forest produce. Under GST regime under Section 2(102) services means anything other than goods and all services but for list of exempted services as provided under Chapter 99 of GST Tariff, 2017 are liable for GST. Since the services provided by the ' applicant do not find mention in the list of exempted services, therefore the applicant, is liable to pay GST @ 18% on the said "Abhivahan Shulk" under Service Code 9997 and to be treated as "other services". Since the facts of the present case are similar to facts earlier dealt by the authority in the case of Forest Department, therefore, we find no reason to deviate from earlier ruling on the same issue. However on the is sue of "Abhivahan Shulk", the applicant is liable to discharge GST liability under reverse charge in terms of Serial No. 5 of the Notification no. 13/2017 - Central Tax (Rare) dated 28.06.2017 (as amended) and the extract of said notification is reproduce below: Notification no. 13/201 7 - Central Tax (Rate) dated 28.06.2017 S.No. Cat....
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.... Government Section 2(69) of the Act: "Local Authority" means- (a) & (b) ** ** ** (c) a Municipal Committee, a Zilla Parishad, a District Board, and any other authority legally entitled to, or entrusted by the Central Government or any State Government with the control or management of a municipal or local fund (d) to (g) ** ** ** On going through the legal position (supra) we find that UEPPCB is not State Government however cow-red under the definition of local authority in terms of Section 2(69)(c ) of the Act. It is established that UEPPCB is a local authority, now second question arises whether the services rendered by them are liable to GST or not. In. this context we find that the services rendered by UEPPCB is covered under Article 243 W of the Constitution and the same is extracted below: (a) Urban planning including town planning. (b) Regulation of land-use and construction of buildings. (c) Planning for economic and s....
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....ivity should falls under Article 243 of the Constitution, has been fulfilled, hence the said activity of UEPPCB.s exempted in terms of serial no. 4 of the Notification No. 12/2017-Central Tax(Rate) dated 28 June 2017. Therefore there is no liability of GST arises on the fee collected by UEPPCB in respect of said activity as the same is exempted service. C. Khanij sampada sulk as per document submitted by the applicant is related to " environmental and mining property fee" which is charged on transportation/release of Natural Sand & Grit and other similar 'River Bed Material (RBM) from the applicant and credited to the State Government Exchequer on monthly basis. Therefore we observe that the said "Khanij sampada sulk" is a form of consideration received by the State Department in lieu of services provided to the applicant for carrying over produce. As per Section 2(102) of the Act 'service' is defined as under: (102) "services" means anything other than goods, money and securities but includes activities relating to the use of money or its conversion by cash or by any other mode, from one form, currency or denomination, to another form, currency or de nomination f....
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....d by the applicant on unaccounted stock of River Bed Material (RBM) on the orders of the District Magistrate to the Govt, account under s.no 5 of Reverse Charge Mechanism (RCM) notification. We observe that GST is applicable on 'supply' of goods or services or both and is charged on the 'value of supply'. Section 15(1) of the Act defines 'value of taxable supply' Section 15(1) at the: transaction value, which is the price: actually paid or payable for the said supply of goods or services o" both where the supplier and the recipient of supply are unrelated aid the Price is the sole considers for the supply. We further find that Schedule II of the Act. provide activities to be treated as supply of goods or supply or services. The relevant portion of the same extracted and read as under: "5(e) agreeing to the oblige lot to refrain from an act, or to tolerate an act or situation, or to do an act' Before coming to any conclusion on this issue we first analyze the provisions (supra) as under (i) Obligation to refrain from an act:- It means any act, which binds a person, for not doing a particular act in the given circumstance. (ii) Obli....
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....hedule II of the Act and is liable for GST @ 18% under Service Code '-99^ and to be treated as "other services". However the applicant is required to discharge GST liability under reverse charge in terms of serial No. 5 of the Notification no. 13/2017 -Central Tax (Rate) dated 28 06.2017 as discussed in point A above. 5.3 Availability of GST paid by the applicant at the time of purchase or repairs including spares w.r.t Vehicles (Pokland. JCB. Dumper & Tipper)used by it for movement of goods in its palace of business as Input Tax Credit. We find that the Section 17(5) of the Act restrict availment of ITC in respect of GST paid on inputs, capital goods and services. The relevant portion of the same is reproduce as under: (a) motor vehicles and other conveyances except when they are used- (i) for making the following taxable supplies, namely; (A) further supply of such vehicles or conveyances; or (B) transportation of passengers; or (C) imparting training on driving, flying navigating such vehicles or conveyances; (ii) for transportation of goods; We also find that in terms . the provisions of Section 2(76) of tie Act the express....