TaxTMI 
TaxTMI 
2019 (2) TMI 1741
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....t and APGST Act respectively) by M/s Indian Potash Limited., (hereinafter referred to as applicant), registered under the Goods & Services Tax. 2. The provisions of the CGST Act and APGST Act are identical, except for certain provisions. Therefore, unless a specific mention of the dissimilar provision is made, a reference to the CGST Act would also mean a reference to the same provision under the APGST Act. Further, henceforth, for the purposes of this Advance Ruling, a reference to such a similar provision under the CGST or AP GST Act would be mentioned as being under the GST Act. 3. Brief Facts of the case: M/s Indian Potash Limited (hereinafter referred to as "IPL", or "Company" or "Applicant" as required by the context) holding....
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....rted on cost inclusive of freight basis, the foreign supplier engages a foreign shipping company to provide the service of transportation of goods in a vessel from the supplier's country to the Indian Port. • Under GST, values of subsidy is excluded from the value of taxable supply. Exclusion of subsidy from the value of taxable supply, results in accumulation of Input tax credit under GST. In addition, payment of GST under reverse charge mechanism on ocean freight is also contributing to accumulation of credit. The applicant had filed an application in form GST ARA-01, Dt:05.12.2018, by paying required amount of fee for seeking Advance Ruling. On Verification of basic information of the applicant, it is observed that....
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....r eliminating the cascading effect ? 5. RECORD OF PERSONAL HEARING: Shri Ram Babu Gunturi, Chief Manager of the applicant company authorized to represent the applicant appeared for personal hearing on 01.02.2019 and they reiterated the submission already made in the application. 6. DISCUSSION AND FINDINGS: We have examined the issues raised in the application. Advance Ruling under GST means a decision provided by the authority or the appellate authority to an applicant on matters or on questions specified in sub-section (2) of Section 97 or sub-section (1) of Section 100 in relation to the supply of goods or services or both being undertaken or proposed to be undertaken by the applicant. As per the said sub-section (2) of Sec....
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....where in this section shall be inter-state supply. Therefore, the said transaction qualifies as import of service and it is inter-state supply. Whether the applicant can be deemed as the recipient of the service or not As per sub-section 3 to Section 5 of IGST Act read with sub-section 1 of Section 5 of IGST Act, on inter-state supply of goods or services, by way of notification the Government may notify specific category of services where the recipient of service will be considered as the person liable to pay tax. The term recipient is defined in sub-section 93 of Section 2 of CGST Act as below: "recipient" of supply of goods or services or both, means,- (a) where a consideration is payable for the supply of good....
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....Integrated Tax (Rate), dated 28-6-2017 is as follows: S.No. Category of Supply of Services Supplier of Service Recipient of Service (1) (2) (3) (4) 10 Services supplied by a person located in non-taxable territory by way of transportation of goods by a vessel from a place outside India up to the customs station of clearance in India. A person located in non-taxable territory Importer, as defined in clause (26) of section 2 of the Customs Act, 1962(52 of 1962), located in the taxable territory. Notification No. 8/2017-Integrated Tax (Rate), dated 28-6-2017 SI.No. Chapter, Section or Heading Description of Service Rate (percent.) Condition 9 Heading 9965 (Goods transport services) ....