TaxTMI 
TaxTMI 
TaxTMI 
2019 (3) TMI 1074
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....velopment Authority, Ministry of Commerce & Industry, Govt. of India. It is a society registered under the Tamilnadu Societies Registration Act, 1975 and are having registered office at Door No.3/ 197, Poompuhar Road, Karaimedu Village, Sattanathapuram P.O., Nagapattinam (Dist), Sirkali Taluk -609109. RGCA has also registered itself under section 12AA of the Income-tax Act, 1961. RGCA has preferred an application for Advance Ruling on 1. Considering the nature of transactions carried out by RGCA and various exemption notification(s) under GST Laws whether RGCA is required to register under GST Laws? 2. If no registration is required for RGCA, whether compulsory registration u/s 24 is required to be made against any of the provisions of Section 24? 3. If so, whether separate registration is to be taken from all the states where the offices of RGCA is situated? Explain the procedure to obtain registration 4. If registration is required to be made, what are the tax rates applicable to the transactions of RGCA? 5. Since RGCA-Head office is having GST Registration (Migrated from TNVAT) at Tamil Nadu only other various project sites are located at different states but doesn't having....
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....ver the routine and all other executive and administrative matters. Both these committees comprise of eminent Scientists, Scholars and Heads of various Government Departments (Central and State), Universities, Educational and Scientific Research Institutes etc. The following are the main activities carried out by RGCA. 1. Research and development for general public 2. Providing Consultancy Services with respect to marine products developments 3. Testing Services (All types of testing services) with respect to agriculture and marine products 4. Training - Farmers, Entrepreneurs, self-group, students, hatchery owner etc 5. Sale of Fish, crab, (all kinds of seeds) 6. Sale of Harvest - fish 7. Sale Artemia Fish Feud (production and sales) 2.2 RGCA has further stated that they are rearing aqua produce (research oriented) and are selling fish (to develop fishery in India not for profit), fish feed, fish seed and involved in training and research development of aquaculture including agriculture. RGCA has stated that they fall under the definition of person under Section 2 (84) of CGST Act as it is an entity (such as firm) other than a natural person *(human being) created by law a....
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....e species which is related to rearing of life forms of animals and agricultural produce and is exempted under Sl.No. 54 of Notification No. 12/2017-Central Tax (Rate) dt 28.06.2017. RGCA provides training to farmers, students etc. on best management practices for aquaculture which are "agricultural extension services as per the definition in Para 20 of this notification. 2.5 Though, the aggregate turnover of RGCA is exceeding Rs. 20 lakhs, it is not liable to register itself under GST as it has no taxable supplies. If RGCA at any place of business or branch of any state or union territory make any taxable supplies, it is required to register under Section 24. However, as RGCA does not do any taxable supplies, it is not required to register. They are not required to register as they supply only goods and services which are exempt as per Section 23. RGCA avails technical services from experts and corporates outside India. AS per Section 7 (1) (b) of CGST Act, scope of supply includes "import of services for consideration whether or not in the course or furtherance of business". As per Section 7 (4) of IGST Act, supply of services imported into India is an inter-state trade or commer....
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.... and adults, soil and rater b) Central Aquaculture Genetics Laboratory (CAGL) - In CAGL the tests conducted are pedigree genetic analysis, sequencing of pathogens and molecular testing for species confirmation etc. The products being tested are a) Seed (babies) of diversified aquaculture species viz., fish, prawn, crab etc„ before stocking into farmer/entrepreneur's ponds b) Adults of diversified species of aquaculture viz., fish, prawn, crab etc., c) Soil, water, feed etc for the presence of pathogens d) Chemical analysis of water and soil e) Gene sequencing for confirmation, species with prevailing ambiguity Eg: Mud crabs, Tilapia etc.. They supply to small/marginal farmers and entrepreneurs for a consideration. * Training to farmers, entrepreneurs, self-help groups, students for a consideration includes a. 5 days and 10 days hands on practical trainings on Best farming methods of diversified Aquaculture species viz., Asian sea bass, Mud crab, GIFT tilapia, Cobia, Pompano, Artemia biomass, culture, Artemia Cyst production from saline earthen ponds etc., b. 2 or 3 days theoretical trainings for students and academia c. Seminars, workshops, awareness Programs,....
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....s a licence under an existing law, shall be liable to be registered under this Act with effect from the appointed day. "Aggregate turnover is defined in Sec.2 (6) to mean the aggregate value of all taxable supplies (excluding the value of inward supplies on which tax is payable by a person on reverse charge basis), exempt supplies, export of goods or services, and inter-state supplies of persons having the same PAN to be computed on all-India basis. Section.23 (1), provides that (a) any person engaged exclusively in the business of supplying goods or services or both that are not liable to tax or wholly exempt from tax under this Act or under the Integrated Goods and Services Tax Act; From the above statutory provisions, it is evident that if the aggregate turnover exceeds the Rs. 20 lakh limit or if a person was registered under an existing law, he is liable to be registered under this Act. In the case at hand, it is a stated fact that RGCA was registered under VAT laws. So, as per Section 22(2), they are liable to be registered under GST with effect from the appointed day. RGCA have also referred to Sec. 23, which specifies the persons who shall not be liable for registratio....
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....ded. Therefore, live fish supplied by RGCA are exempt from tax. 5.1 RGCA has stated that Artemia cysts that they supply are aquatic feed classifiable under 2302/2304/ 2305/ 2306/ 2308/ 2309. Artemia, also called brine shrimp, is a species of crustacean and cysts are eggs of the shrimp from which larvae hatch which is in turn used as aquatic feed. Tariff Heading 2302, 2304,2305,2306,2308 all covers products of vegetable. Hence, Artemia cysts cannot be classified under any of these tariff headings. Tariff heading 2309 covers Preparations of a Kind Used in Animal Feeding Explanatory Notes to Tariff heading 2309 states: The heading includes products of a kind used in animal feeding, obtained by processing vegetable or animal materials to such an extent that they have lost the essential characteristics of the original material, for example, in the case of products obtained from vegetable materials, those which have been treated to such an extent that the characteristic cellular structure of the original vegetable material is no longer recognisable under a microscope. Tariff heading covers products which are obtained by processing animal material to such an extent that they have l....
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....they are not for human consumption. This is covered under Chapter 05 as products of animal origin and ore specifically under tariff 0511 under product of crustaceans on similar lines as fish eggs. Heading 0511- Animal products not elsewhere specified or included are taxable at 2.5% CGST under Sl. No.21 of Notification No. 1/2017-C.T. (Rate) dated 28.06.2017 as amended and at 2.5% SGST under SI. No.21 of Notification No. II(2)/CTR/532(d-4)/2017 vide G.O. (Ms) No. 62 dated 29.06.2017 as amended. Therefore, Artemia cysts supplied by RGCA are taxable at 2.5% CGST and 2.5% SGST as above. 6. RGCA have stated that they supply various services, for which the advance ruling has been sought for applicable tax rates. They have stated that their supply of services qualifies for exemption from CGST in terms of the under-mentioned entries of Sl no 1 Notification No. 12/2017-C.T. (Rate) dated 28.06.2017 as Services by an entity registered under Section 12AA of the Income Tax Act, 1961 by way of charitable activities where RGCA states their "charitable activities" relates to preservation of environment including watershed, forests and wildlife as per Para 2(r) of the above notification. The miss....
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.... Andhra Pradesh for providing technical assistance and consultancy services for establishment and operationalization of Asian Sea bass Hatchery The Explanatory notes explaining the scope of services under the heading 9986 states as follows: 998615 Support services to fishing This service code includes services involving operation of a fishing unit on a fee or contract basis; operation of an aquaculture unit on a fee or contract basis; other support services related to fishery, fish hatcheries and fish farms 998619 Other support services related to agriculture, hunting, forestry and fishing This service code includes other support services related to agriculture, hunting, forestry and fishing, The consultancy services supplied by RGCA are towards the operation of aquaculture and fish farms and are classifiable under SAC 9986. Heading 9986 - Services relating to cultivation of plants and rearing of all life forms of animals, except the rearing of horses, for food, fiber, fuel, raw material or other similar products or agricultural produce by way of- (a) agricultural operations directly related to production of any agricultural produce including cultivation, harvesting, threshi....
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....346 Technical testing and analysis services This service code includes 1. testing and analysis of the chemical and biological properties of materials such as air, water, waste (municipal and industrial), fuels, metal, soil, minerals, food and chemicals; 2. testing and analysis in related scientific fields such as microbiology, biochemistry, bacteriology, etc.; In the instant case, testing for pathogens of soil, water, feed etc. and chemical analysis of water and soil are covered under SAC 998346 as technical testing and analysis services under the inclusion I above. Gene sequencing of pathogens are covered under inclusion 2 above in the field of microbiology under SAC 998346. In the present case, testing for pathogens of soil, water, feed etc. and chemical analysis of water and soil and Gene sequencing of pathogens by RGCA which is covered under SAC 998346 and taxable at 9% CGST under Sl.no 21 of Notification No.11/2017 dt 28.06.2017 as amended and 9% SGST under Sl no 21 of Notification No. II(2)/CTR/532(d-14)/2017 vide G.O. (Ms) No. 72 dated 29.06.2017 as amended. The Explanatory notes explaining the scope of services under the heading 99811 states as follows: 99811 Researc....
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....tices through farmer education or training; These are support services under SAC 9986, in this case related to fishing. Agricultural extension as per the definition is transmission of scientific research and knowledge to the actual producers, in this case farmers or hatcheries. Heading 9986 - Services relating to cultivation of plants and rearing of all life forms of animals, except the rearing of horses, for food, fibre, fuel, raw material or other similar products or agricultural produce by way of- (f) Agricultural extension services; are exempt under Sl.no. 54 of Notification No 12/2017 dt 28.06.2017 as amended. In the present case training services of RGCA to farmers, hatcheries which are support services for rearing of fish ,crab, prawn , etc. and are agricultural extension services covered under SAC 9986 and hence are exempt from CGST under Sl no 54 of Notification No 12/2017 dt 28.06.2017 as amended and exempt from SGST under SI no 54 of Notification No.II(2)/CTR/532(d-15)/2017 vide G.O. (Ms) No. 73 dated 29.06.2017 as amended Whereas, training to students and academia will not form a part of agricultural extension service. It is merely imparting skill or knowledge im....
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....e of tax for each of the supplies made by RGCA are discussed in Para 5 and 6 above. 10. Question No.5 in the application for Advance Ruling is that when only their Head Office in Tamilnadu has GST registration, how purchase of material by their branch in Kerala from Mumbai is to be made and what documents are required to be carried under GST law for the transport of such purchased goods. In this regard, it is observed that this question is not on any of the specified issues in respect of which advance ruling may be sought in terms of Section 97 (2) of the CGST Act, 2017. Therefore, the provisions of Advance Ruling are not applicable to this question and no ruling is provided in this regard. 11. In view of the foregoing findings, we rule as under: RULING 1. The Applicant, RGCA is liable to be registered under Section 22 of CGST and TNGST Act. 2. RGCA shall obtain registration in every such State or Union territory in which he is so liable. 3. The rate of tax for various supplies of goods and services supplied by RGCA are: a. Fish seeds, prawn/ shrimp seeds supplied by RGCA, classifiable under 0301, are exempt from CGST under Sl. No. 18 of Notification No.2/2017-C.T. (Rate) da....