AI Drafter 
TaxTMI 
TaxTMI 
2019 (10) TMI 528
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....GST Act and the MGST Act are the same except for certain provisions. Therefore, unless a reference is specifically made to any dissimilar provisions, a reference to the CGST Act would also mean a reference to the same provision under the MGST Act. Further to the earlier, henceforth for the purposes of this Advance Ruling, a reference to "GST Act" would means CGST Act / MGST Act. 2. FACTS AND CONTENTION - AS PER THE APPLICANT The submissions, as reproduced verbatim, could be seen thus- A. Statement of the relevant facts having a bearing on the question(s) on which the advance Ruling is required. 1. Shri Vijay B. Shirke (hereinafter referred to as the 'applicant') is duly registered with the Goods and Service Tax Department vide registration number 27ACMPS4462Q1ZM. 2. The applicant owns horses. The horses owned by the applicant participate in races organized at different clubs. The horse races take place at Royal Western India Turf Club (RWITC) located in Mumbai and Pune. The applicant also participates in horse races held in Mysore Race Club, Bangalore Turf Club, Hyderabad Race Club, Royal Calcutta Turf Club and Madras Race Club. Upon winning such horse races, the app....
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....rter, exchange, license, rental, lease or disposal made or agreed to be made for a consideration by a person in the course or furtherance of business; (b) import of services for a consideration, whether or not in the course or furtherance of business; (c) the activities specified in Schedule l, made or agreed to be made without a consideration, and (d) the activities to be treated as supply of goods or supply of services as referred to in Schedule II". 2.3 Section 9, is the charging section. It provides for levy of tax called the GST on all intra-state supplies of goods or services or both and at such rates, as may be notified by the Government on the recommendations of the Council and collected in such manner as may be prescribed and shall be paid by the taxable person 2.4 Section 2002) of CGST Act, 2017 defines "Service" as: "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 denomination for which a separate consideration is charged" 2.5 On perusal of the above provisio....
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....ed and requested for admission of application as per details in their application. The request for admission of application is accepted and application is admitted and taken up for final hearing. Shri. Bharat Raichandani, Advocate pressed the question that whether the prize money won by the horse owner in the horse race is liable to GST or not. The applicant opinion that it is supply and is taxable. However, he requested for a ruling as since other competitors are not paying GST. We heard from both the sides. The Jurisdictional Officer, Smt. Swati Shinde, State Tax Officer(C-118), Nodal 2, Pune appeared in the hearing. 05. OBSERVATIONS AND FINDINGS: We have gone through the facts of the case and written contention of parties produced on record. The issue put before us is in respect of whether an activity undertaken by the applicant is supply or not, which would be on the lines thus - 1) Shri Vijay B. Shirke ('applicant') is duly registered person under the GST Act. He owns horses and these horses participate in races organized at different clubs. The horse races take place at various locations i.e. at Mumbai, Pune, Bangalore, Hyderabad, Calcutta, and Chennai. Upon winni....
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....ntain the record in detail, in respect of movement, casualties, pregnancy, medical treatment, discarding and death of each bred and inform the respective authority in defined formats. These horses are trained and maintained in a specific manner. Thus the activity of applicant is providing the services of specialized and trained horses for race. Both the race organizer and the horse owner receive a direct and individual benefit from this activity. 4) In view of above, it is to be seen, whether the activity effected by the applicant is covered under the scope of supply under section 7 or not under CGST Act and consequently, liable to GST or not. So the relevant provisions under CGST Act are examined. The term "supply" is described under Section 7 of the CGST Act, 2017 which is reproduced below: "7. (1) For the purposes of this Act, the expression "supply" includes - (a) all forms of supply of goods or services or both such as sale, transfer, barter, exchange, license, rental, lease or disposal made or agreed to be made for a consideration by a person in the course or furtherance of business, (b) import of services for a consideration whether or not in th....
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....or not it is for a pecuniary benefit; (b) any activity or transaction in connection with or incidental or ancillary to sub clause (a); (c) any activity or transaction in the nature of sub-clause (a), whether or not there is volume, frequency, continuity or regularity of such transaction; (d) supply or acquisition of goods including capital goods and services in connection with commencement or closure of business, (e) provision by a club, association, society, or any such body (for a subscription or any other consideration) of the facilities or benefits to its members; (f) admission, for a consideration, of persons to any premises; (g) services supplied by a person as the holder of an office which has been accepted by him in the course or furtherance of his trade, profession or vocation; (h) services provided by a race club by way of totalisator or a licence to book maker in such club, and (i) any activity or transaction undertaken by the Central Government, a State Government or any local authority in which they are engaged as public authorities, From the above definition, the term "business" broadly means a....
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.... for levy and collection of tax. Section 9 is the charging section. This charging section provides for levy of taxes on all intra-state supplies of services at such rates, as notified by the Government and collected in such manner as may be prescribed in the notification schedules. Under the GST Act, the Exemption Notification No. 12/2017 CT (Rate) dt. 28.6.2017 is issued by the Government, by which specific supply of services are exempted from taxes. The services than those notified services, would naturally be covered under "Taxable supply of services". The taxable supply of services are notified and classified under Notification No. 11/2017-CT (Rate) dt. 28.6.2017 and rate of taxes are prescribed therein. We find that, the applicant's services are not covered under exemption notification No. 12/2017 of CGST ACT and therefore, this transaction is not covered under exemption category of services. Hence, we have perused the Notification No. 11/2017, which covers taxable supply of services and rate of tax thereon. We find that the applicant's activity and services rendered are not specifically described in the said notification 11/2017 and hence, it is covered by the entry at Sr. no....