TaxTMI 
TaxTMI 
2019 (6) TMI 1063
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....e provision under the MGST Act, Further to the earlier, henceforth for the purposes of this Advance Ruling, the expression SGST Act' would mean CGST Act and MGST Act. 02. FACTS AND CONTENTION - AS PER THE APPLICANT The submissions, as reproduced verbatim, could be seen thus- STATEMENT OF FACTS The said firm M/s. Jalaram Feeds a registered Partnership firm having its registered office at K-31/2A, MIDC, Hingna Road, Nagpur-16, is into manufacturing of only Compound Animal Feed (HSN Code : 2309). The above product is exempted under the CGST Act, 2017. No other supply of any kind of Goods and Services is made by the firm which in anyways is chargeable to Tax under CGST Act, 2017. The Firm says that since it is into supply of only exempted goods, it is covered under section 23 of CGST Act, 2017 and is not liable to take registration under any of the provisions of the Act, since the firm is into the supply of Exempted goods, it requires services of Goods Transport Agency like any other business. As per the provisions of Act, 2017, a firm is liable to take registration as it is liable to pay GST under Reverse Charge. The firm is of the opinion that Sec 24 overrules sec 22 (....
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....ll not be liable to registration, namely:- (a) Any person engaged exclusively in the business of supplying goods or services or both that is not liable to tax or wholly exempt from tax under this Act or under the Integrated Goods and Services Tax Act; (b) An agriculturist, to the extent of supply of produce out of cultivation of land. (2) The Government may, on the recommendations of the Council, by notification, specify the category of persons who may be exempted from obtaining registration under this Act. Section 24 of CGST Act - Compulsory registration in certain cases Section 24 of CGST Act, 2017 from bare act: Notwithstanding anything contained in sub-section (1) of section 22, the following categories of persons shall be required to be registered under this ACT, -- (i) persons making any inter-State taxable supply, (ii) casual taxable persons making taxable supply: (iii) persons who are required to pay tax under reverse charge; (iv) person who are required to pay tax under sub-section (5) of section 9; (v) non-resident taxable persons making taxable supply; (vi) persons who are required to ....
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....ecial category States, he shall be liable to be registered if his aggregate turnover in a financial year exceeds ten lakh rupees. Section 2(6) defines Aggregate Turnover as: - "aggregate" turnover" means 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, exports of goods or services or both and inter-State supplies of persons having the same Permanent Account Number, to be computed on all India basis but excludes central tax, State tax, Union territory tax, integrated tax and cess; Section 2(47) defines Exempt Supply as: - "exempt supply" means supply of any goods or services or both which attracts nil rate of tax or which may be wholly exempt from tax under section 11, or under section 6 of the Integrated Goods and Services Tax Act, and includes non-taxable supply; To sum-up now, it is a clear interpretation that if a person is in the business of supply of Exempt Goods irrespective of Turnover (INR 50 lakhs) exceeding the Limits specified in the section he is not liable to take registration because the turnover criteria is only appl....
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....ax at source under section 52; (x) Every electronic commerce operator; (xi) Every person supplying online information and database access or retrieval services from a place outside India to a person in India, other than a registered person; and (xii) Such other person or class of persons as may be notified by the Government on the recommendations of the Council. It is fairly common in tax laws to use the expression "Notwithstanding anything contained in this Act or other Acts" or "Subject to other provisions of this Act or Other Acts". Ordinarily, it is a legislative device to give such a clause an overriding effect over the law or provision that qualifies such clause, On the clear reading of section 24 it has been devised to override sec 22(1) as it starts with the expression Notwithstanding anything contained in sub-section (1) of section 22". Thus section 24 specifically overrides the provisions of Section 22(1). However section 24 does not mention anything about sec 23 as it is a specific section. Applying the interpretation rules of Law, it can be very well concluded that the legislation has chosen consciously section 24 to override the prov....
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....rical energy 03. CONTENTION - AS PER THE CONCERNED OFFICER The submission, as reproduced verbatim, could be seen thus- Gist of application : The applicant claim that Section 24 overrules Section 22 and not Section 23, according to which the firm which is into supply of wholly exempted goods is not liable to get registered under the Act. Comments on the application for Advance Ruling are as under: As per the provisions of section 9(3) or CGST / SGST(UTGST) Act, 2017 / section 5(3) IGST Act, 2017, the Government may, on the recommendations of the Council, by notification, specify categories of supply of goods or services or both, the tax on which shall be paid on reverse charge basis by the recipient of such goods or services or both and all the provisions of this Act shall apply to such recipient as if he is the person liable for paying the tax in relation to the supply of such goods or services or both. Accordingly vide Notification No. 13/2017-CentraI Tax (Rate) dated 28.06.2017 services were specified on which tax shall be paid on reverse charge basis by the recipient of such services. Goods Transport Service is one among them. Section 22 of the CGST Act m....
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.... charge. Taking registration for payment of GST under reverse charge would not mean that the tax payer will have to pay taxes on his exempted supplies. His fully exempted supplied would continue to be exempted even if he has to pay tax under reverse charge mechanism. Further as per notification No. 05/2017-CT dated 19.06.2017, Suppliers exclusively involved in providing services notified for payment of tax under reverse charge have been exempted for taking registration. In that case if contention of the applicant is accepted then neither the supplier of GTA service nor recipient would pay service tax nor would government lose revenue. This will defeat the basic purpose of reverse charge mechanism. Thus the applicant shall be required to be registered as per Section 24 (iii) of CGST Act, 2017 ("Persons who are required to pay tax under reverse charge") 04. HEARING Preliminary hearing in the matter was held on 20.02.2019. Sh. Jinish Katariya, CA appeared and requested for admission of their application as per details therein. It was brought to his notice to pay balance fee of Rs. 5000. Jurisdictional Officer was not present for hearing. The application was admitted ....
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....section (1) of Section 22 of the GST Act. On this factual matrix applicant has raised following question: Question 1: Whether the firm is liable to take registration under section 24 or is exempted from registration under section 23? The contention of the applicant that section 24 over rules section 22 only and not section 23, (section 23 being a specified section and independent and not overruled by section 24), and therefore not required to take registration, is not acceptable following reasons. Scheme GST being a tax on the event of 'supply' every supplier needs to get registered. However, as per the scheme of the Act, not every supplier is required to get registered. Only those suppliers, whose aggregate turnover of all supplies exceeds the threshold limit as prescribed under Section 22 (including exempted and taxable supplies). Thus to be registered a person satisfies two conditions namely, supply of taxable goods or services or both and aggregate turnover in a financial year exceeds threshold limit. The expression 'taxable supply' has been defined under the Act, as below: Section 2(108): "taxable supply" means a supply of goods or services or both which is leviabl....
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....place outside India to a person in India, other than a registered person; and (xii) such other person or class of persons as may be notified by the Government on the recommendations of the Council. Section 24 deals with compulsory registration with respect to categories of persons specified therein. As per Section 24, persons who are required to pay tax under reverse charge shall, notwithstanding anything contained in subsection 1 of Section 22, be required to get registered under the Act. The term reverse charge has been defined under the Act as below: Section 2(98): "reverse charge" means the liability to pay tax by the recipient of supply of goods or services or both instead of the supplier of such goods or services or both under sub-section (3) or sub-section (4) of section 9, or under sub-section (3) or sub-section (4) of section 5 of the Integrated Goods and Services Tax Act; Further, Government is vested with powers to specify by way of notification, categories of supply, the tax on which shall be paid on reverse charge basis by the recipient of such supplies. The relevant section of the GST Act are as below: Section 9(3): The Government may,....
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....d under the Central Goods and Services Tax Act or the Integrated Goods and Services Tax Act or the State Goods and Services Tax Act or the Union Territory Goods and services Tax Act; or (e) any body corporate established, by or under any law; or (f) any partnership firm whether registered or not under any law including association of persons; or (g) any casual taxable person Goods Transport Agency (GTA) (a) Any factory registered under or governed by the Factories Act, 1948(63 of 1948); or (b) any society registered under the Societies Registration Act, 1860 (21 of 1860) or under any other law for the time being in force in any part of India; or (c) any co-operative society established by or under any law; or (d) any person registered under the Central Goods and Services Tax Act or the Integrated Goods and Services Tax Act or the State Goods and Services Tax Act or the Union Territory Goods and Services Tax Act; or (e) any body corporate established, by or under any law; or (f) any partnership firm whether registered or not under any law including association of persons; or (g) any casual taxable person; located in the taxable terr....
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....Mohammed Kutty, Drug on 19 July, 1985: Equivalent citations: 1986 CriLJ 1534 = 1985 (7) TMI 381 - KERALA HIGH COURT "Even if there is conflict between the provisions, the object and purpose of interpretation should be to give effect to both the provisions to the extent possible. Interpretation will have to be made with that object in view. The object of interpretation must be to have a compromise between the rival provisions to the extent possible. The object of interpretation should not, as far as possible, be to make one of the provisions redundant". Further it is in the fitness of things to bear in mind certain established principles of law on the interpretation of law by renowned jurists as stated in Eicher Tractors Ltd. vs Dy. CIT on 4 October, 2002: Equivalent citations: (2002) 77 TTJ Del 681 = 2002 (10) TMI 236 - ITAT DELHI-B as under: "It, would very apt at this stage to refer to certain observations/extracts from the 'Principles of Statutory Interpretation' by Justice G.P. Singh, Eighth Edm 2001, as follows : As stated earlier and as approved by the Supreme Court, 'the words of a statute, when there is doubt about their meaning, are to b....
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.... to conflict so that they harmonise.' it should not be lightly assumed that 'Parliament had given with one hand what it took away with the other'. The provisions of one section of a statute cannot be used to defeat those of another 'unless it is impossible to effect reconciliation between them.' The same rule applies in regard to sub-sections of a section. In the words of Gajendragadkar, J.: 'The sub-sections must be read as parts of an integral whole and as being interdependent' an attempt should be made in construing them to reconcile them if it is reasonably possible to do so, and to avoid repugnancy.' As Stated by Venkatarama Aiyar, J. : 'The rule of construction is well settled that when there are in an enactment two provisions which cannot be reconciled with each other, they should be so interpreted that, if possible, effect should be given to both. This is what is known as the rule of harmonious construction. That effect should be given to both, is the very essence of the rule. Thus a construction that reduces one of the provisions to a 'useless lumber' or 'dead letter' is not harmonious construction. To harmonise is not to destory. A familiar approach in all such c....