2020 (2) TMI 556

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....ble us invoice our product to our dealer at concessional rate of GST @ 5.00%? At the outset, we would like to make it clear that the provisions of both the CGST Act and the MGST Act are the same except for certain provisions. Therefore, unless a mention 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, the expression 'GST Act' would mean CGST Act and MGST Act. 2. FACTS AND CONTENTION - AS PER THE APPLICANT The submissions made by the applicant is as under:- 2.1 M/s. Equitron Medica Private Limited (Applicant), is engaged in the manufacture of laboratory medical equipment like Autoclaves, Incubators, Rotary Vacuum Evaporators, Baths etc., and their target market includes Institutions engaged in Scientific Research. vide subject application, a question is posed on whether GST notification nos. 45/2017 & 47/2017 are applicable in their case. As per the said Notifications, GST at a concessional rate of 5.00 % can be levied on supply to the end users who undertake / are engaged in the scientific researc....

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....ions specified in the corresponding entry in column (4) of the said table given in the notification. In respect of Intra State clearances, similar Notification has been issued vide Notification No. 45/2017-C.T. (Rate) dated 14.11.2017 which exempts goods specified in column (3) of the Table, from the so much of the central tax leviable thereon under Section 9 of the said Act, as in excess of the amount calculated at the rate of 2.5%, when supplied to the institutions specified in the corresponding entry in column (2) of the Table, subject to the condition's specified in the corresponding entry in column (4) of the said table given in the notification. The total tax payable under GST in respect of such clearances effected within the State is 5%. 3.3 In the present case, applicant is not the direct supplier of the goods for which clarification is sought from this Authority. They are supplying the said goods to their distributors who further supply these goods classified under the Notification No. 45/2017-Central Tax (Rate) dated 14.11.2017 to Research Organizations @5% of the GST Tax. 04. HEARING Preliminary hearing in the matter was held on 26.11.2019. Sh. Madhav Deodhar, M....

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....nbsp;University or an Indian Institute of Technology or Indian Institute of Science, Bangalore or a National Institute Technology/ Regional Engineering Collage (a) Scientific and technical instruments, apparatus, equipment (including computers); (b) accessories, parts, consumables and live animals (experimental purpose); (c) computer software, Compact Disc-Read Only Memory (CD-ROM), recorded magnetic tapes, microfilms, microfiches; (d) Prototypes, the aggregate value of prototypes received by an institution does not exceed fifty thousand rupees in financial year. (i) The goods are supplied to or for - (a) a public funded research institution under the administrative control of the Department of Space or Department of Atomic Energy or the Defence Research Development Organisation of the Government of India and such institution produces a certificate 10 that effect from an officer not below the rank of the Deputy Secretary to the Government of India or the Deputy Secretary to the State Government or the Deputy Secretary in the Union Territory in the concerned department to the supplier at the lime of supply of the specified goods; or (b) an institutio....

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....ment and State Governments, other than a hospital (a) Scientific and technical instruments, apparatus, equipment (including computers); (b) accessories, parts, consumables and live animals (experimental purpose); (c) Computer software, Compact Disc-Read Only Memory(CD-ROM), recorded magnetic tapes, microfilms, microfiches; (d) Prototypes, the aggregate value of prototypes received by an institution does not exceed fifty thousand rupees in a financial year. (i) The institution produces, at the time of supply, a certificate to the supplier from the Head of the Institution, in each case, certifying that the said goods are required for research purposes only; (ii) in the case of supply of live animals for experimental purposes, the institution produces, at the time of supply, a certificate to the supplier from the Head of the Institution that the live animals are required for research purposes and enclose a no objection certificate issued by the Committee for the Purpose of Control and Supervision of Experiments on Animals. 4. Regional Cancer Centre (Cancer Institute) (a) Scientific and technical instruments, apparatus, equipment (including computers); (b)....

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....ion, Centre, Trust, Society, Association, Laboratory, Clinic or Maternity Home which renders medical, surgical or diagnostic treatment. 2. This notification shall come into force with effect from the 15th day of November, 2017. 5.5 We find that the applicant supplies subject goods only to their distributors who are involved in further trading of the said goods. The distributors make further supply of the said goods, also to some notified institutions engaged in the scientific research, at a concessional rate of GST @ 5%. It has also been submitted that the end-user institutions, to whom the distributors supply goods are mainly Research institution, other than a hospital, included in Sr. No. 2 of above mentioned Notification 45/2017. 5.6 First and foremost, we find that the applicant does not supply goods to end users who undertake or are engaged in the scientific research. The goods are supplied to their distributors only. The applicant has submitted that the end-user institutions, to whom goods are supplied by their distributors, are mainly included in Sr. No. 2 of Notification No. 45/2017-C.T. (Rate) dated 14.11.2017. In respect of institutions mentioned at Sr. No.....