TaxTMI 
TaxTMI 
2019 (10) TMI 943
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....ct, 2017 and Section 97 of the KGST Act, 2017, in FORM GST ARA-01 discharging the fee of Rs. 5,000-00 each under the CGST Act and the KGST Act. 2. The Applicant company is registered under the Goods and Services Act, 2017. The applicant has sought advance ruling in respect of the following question: a) Whether the legally binding and prescribed activity of depositing the timber / wood by the applicant with the Government Timber Depot for disposal as per the provision of Section 104 of the Karnataka Forest Act will constitute a "supply" and therefore subject to payment of GST for keeping the goods at the custody of the auctioneer i.e. Government Timber Depot? b) If GST applicable on depositing timber with the auctioneer,....
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.... shade trees. However, excessive shade trees are also not suitable for coffee growing. b. The applicant identifies such excessive trees as part of its shade management policy and the same is cut down to protect the coffee bushes surrounding them from getting damaged. Such trees other than silver oak timber, along with dead standing/ wind fallen trees, but along with Rose wood will be transported to Government Auction Depots as mandated by the provision of the Forest Act for its disposal. c. The applicant supplies the Rosewood and Jungle kind timber (hereinafter collectively called "Timber / wood") to the Government Timber Depots at Thithimathi and Kushaianagara (both located in Kodagu District) as mandated under section 10....
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....ling is sought by the applicant and relevant facts. At the outset, we would like to state that the provisions of both the CGST Act and the KGST Act are the same except for certain provisions. Therefore, unless a mention is specifically made to such dissimilar provisions, a reference to the CGST Act would also mean a reference to the same provisions under the KGST Act. 4.1 The transaction of the applicant is examined and found that there are two types of transactions between the applicant and the Karnataka Timber Depots: (a) The sale of timber by the Karnataka Timber Depot on behalf of the applicant (b) provision of service of supervision of timber till the time of sale 4.2 The timber / wood belonging to the applicant....
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....ernment Timber depot for disposal would amount to "supply" within the meaning assigned to it under the GST Act and GST is chargeable on the value of such supply. 4.4 Regarding the value for which the tax shall be paid for the transaction of supply explained in para 4.3 above, Section 15(4) of the CGST Act, 2017 mandates that where the value of supply of goods cannot be determined as per Section 15(1) then the same shall be determined in such manner as may be prescribed. 4.5 Rule 29 of the CGST Rules, 2017 reads as under: "Rule 29: Value of supply of goods made or received through an agent The value of supply of goods between the principal and his agent shall - (a) be the open market value of the goods being supplied,....
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....ssue the invoice with respect to the supply; or (b) the date on which the supplier receives the payment with respect to the supply." Further, section 31(1) of the CGST Act, 2017 reads as under: "(1) A registered person supplying taxable goods shall, before or at the time of, - (a) removal of goods for supply to the recipient, where the supply involves movement of goods; or (b) delivery of goods or making available thereof to the recipient, in any other case, issue a tax invoice showing the description, quantity and value of the goods, the tax charged thereon and such other particulars as may be prescribed:" A conjoint reading of the above two provisions makes it amply clear that the time of....
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....Timber Depots are Government Departments, the applicant is liable to pay tax on the receipt of supervision services. In case the Government Timber Depots are not Government Department then such reverse charge mechanism shall not be applicable and the Government Timber Depot shall collect the GST and issue invoice to the applicant. 9. In view of the foregoing, we rule as follows RULING 1. The transaction of depositing timber with the Government Timber depot for disposal would amount to "supply" within the meaning assigned to it under the GST Act and GST is chargeable on the value of such supply. 2. The value of supply of timber to the Depot by the applicant shall be the open market value or the value as may be determined under Ru....