TaxTMI 
TaxTMI 
2020 (7) TMI 481
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....or fulfilling obligations towards supply of coal. 1.4. The services so utilized by Applicant include the following but not limited to, a. Stevedoring services b. Unloading and Loading of coal c. Security of coal d. Insurance e. Renting of the premises Appropriate rate of GST is charged by respective service providers on above services so provided. 1.5. Above services will be utilized by Applicant at the following stages: a. Procurement and keeping of coal at the port b. Services provided to customer at port towards handling the coal on behalf of / for the customer. 1.6 Customers from all over India including traders and manufacturers place order(s) on Applicant which can be broadly classified as: a. Supply of coal simpliciter:- Where the customer does not wish to avail any of the coal handling and distribution services and intends to purchase coal. b. Supply of coal and availment of coal handling and distribution:- Where the customer not only wishes to purchase coal, but also intends to avail services of coal handling and distribution during the period of supply of coal. 1.7 Coal handlin....
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....distribution charges? 03. DEPARTMENT'S VIEW POINT The Joint Commissioner(In-situ), CGST & Central Excise, Division-IV, Indore, vide his letter IV(16)30-50/T/D-IV/Adj/18-19/10227 dated 06.06.2020 has furnished the opinion of the department and it has been categorically opined that A. The issue has been examined and found that the applicant activities are trading of coal and supply of coal and the same shall be taxable at 5% (CGST 2.5%+SGST 2.5%) under heading 2701 of Notification no. 1/2017-Central Tax (Rate). They are also providing services named as coal handling and distribution services which shall be taxable at 18% (9% + 9%) under the heading 9997 of Notification no. 11/2017-Central Tax (Rate). B. As per the present scenario also the applicant is paying GST 18% with availing benefit of ITC as per applicable rate which is correct as per CGST Act, 2017. RECORD OF PERSONAL HEARING 3.1. Adv. Dr. Arvind Singh Chawla and CA Pramod Shrivastava (Group CFO), appeared on behalf of the applicant and reiterated submissions already made in the application. They pleaded that pursuant to provisions of CGST Act, 2017 and Notification 1/2017- CT (Rate); Notific....
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.... Description of Service Rate (per cent.) Condition (1) (2) (3) (4) (5) 30 Heading 9997 Other services (washing, cleaning and dyeing services; beauty and physical well-being services; and other miscellaneous services including services nowhere else classified). 9 - 4.5. Input Tax Credit definition is provided u/s 2 of CGST Act as under: (62) "input tax" in relation to a registered person, means the central tax, State tax, integrated tax or Union territory tax charged on any supply of goods or services or both made to him and includes- (a) the integrated goods and services tax charged on import of goods; (b) the tax payable under the provisions of sub-sections (3) and (4) of section 9; (c) the tax payable under the provisions of sub-sections (3) and (4) of section 5 of the Integrated Goods and Services Tax Act; (d) the tax payable under the provisions of sub-sections (3) and (4) of section 9 of the respective State Goods and Services Tax Act; or (e) the tax payable under the provisions of sub-sections (3) and (4) of section 7 of the Union Territory Goods and Services Tax Act, but d....
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....rn under section 39: Provided that where the goods against an invoice are received in lots or instalments, the registered person shall be entitled to take credit upon receipt of the last lot or instalment: Provided further that where a recipient fails to pay to the supplier of goods or services or both, other than the supplies on which tax is payable on reverse charge basis, the amount towards the value of supply along with tax payable thereon within a period of one hundred and eighty days from the date of issue of invoice by the supplier, an amount equal to the input tax credit availed by the recipient shall be added to his output tax liability, along with interest thereon, in such manner as may be prescribed: Provided also that the recipient shall be entitled to avail of the credit of input tax on payment made by him of the amount towards the value of supply of goods or services or both along with tax payable thereon. (3) Where the registered person has claimed depreciation on the tax component of the cost of capital goods and plant and machinery under the provisions of the Income-tax Act, 1961 (43 of 1961), the input tax credit on the said tax....