TaxTMI 
TaxTMI 
2020 (3) TMI 189
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..... Whether exemption can be claimed if amount of mandi fee is below Rs. 5,000/- in individual consignment. (e) applicability of GST on penalty. 2. 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; 3. As per the said sub-section (2) of Section 97 of the CGST/SGST Act, 2017 advance ruling can be Fought by an applicant in respect of : (a) Classification of any goods or services or both, (b) Applicability of a notification issued under the provisions of this Act, (c) Determination of time and value of supply of goods or services or both, (d) Admissibility of input tax credit of tax paid or deemed to have been paid, (e) Determination of the liability to pay tax on any goods or services or both, (f) Whether the applicant is required to be registered? (g) Whether any particular thing don....
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....ore supply in terms of amendment made in Section 7 of the Act retrospectively by the Amendment Act, 2018 and will not attract GST. (iii) mandi fee is not a supply therefore no GST is payable on the same. (iv) Penalty recoverable for damage of material by labour is not chargeable to GST being neither a supply of goods or service as per Serial No. 6 of Schedule III of the Act. 7. In the present case we are not deciding any wider question but restricting our conclusion to the facts and circumstances which were filed for our consideration in the application. Now we proceed by taking the issue one by one : (A) Applicability of GST rate and HSN/classification of wood scrap. (A-1) In this context we find that Chapter 44 of the GST Tariff deals with "wood and articles of wood; wood charcoal". Chapter Heading 4401 further deals with fuel woods, in logs, in billets, in twigs, in faggots or in similar form; wood in chips or particles; sawdust and wood waste and scrap, whether or not agglomerated in logs, briquettes, pellets or similar forms. (A.2) On perusal of Chapter Heading 4401 of the GST Tariff we observe as under : ....
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.... Tax (Amendment) Act, 2018. The relevant portion of the same is reproduced as under : (a) in sub-section (1), - (i) in clause (b), after the words "or furtherance of business;", the word "and" shall be inserted and shall always be deemed to have been inserted; (ii) in clause (c), after the words "a consideration", the word "and" shall be omitted and shall always be deemed to have been omitted; (iii) clause (d) shall be omitted and shall always be deemed to have been omitted; (b) after sub-section (1), the following sub-section shall be inserted and shall always be deemed to have been inserted, namely .- "(1A) where certain activities or transactions constitute a supply in accordance with the provisions of sub-section (1), they shall be treated either as supply of goods or supply of services as referred to in Schedule II"; (c) --------------- (B.3) On perusal of legal provisions (supra), we find that Section 7 of the Act deals with the terms "supply". We also find that Section 7 of the Act was amended by the CGST (Amendment) Act, 2018 vide which it has been clarifi....
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....paid on forward charge basis or reverse charge basis. It is relevant to mention that under Section 9(3) of CGST/SGST Act, 2017, wood has not been notified as such goods supplied by unregistered person/farmer/Agriculturist, in respect of which GST shall be paid on reverse charge basis by the recipient. Further under Section 9(4) of CGST/SGST Act, 2017, which came into force from 1st of February 2019, wood has not been specified as a -category of goods received from an unregistered supplier on which the tax is to be paid on the reverse charge basis. Moreover prior to 1st February, 2019, in pursuance of the provision to tax the supply of taxable goods or services or both by an unregistered supplier to a registered person on reverse charge basis, an exemption to the extent of the aggregate value of such supplies of goods or services or both up to five thousand rupees in a day was made effective from the 1st of July, 2017. The said restriction of five thousand rupees was withdrawn on 13^th October, 2017 and a blanket exemption was provided till the 31st March, 2018 which was further extended to 30th September, 2019. However in between from 1st of February, 2019 an amended Se....