TaxTMI 
TaxTMI 
2021 (3) TMI 498
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....t Corporation Limited, Polyhose Towers 1st Floor 86 Mount Road Chennai Tamil Nadu is a public limited company, promoted by TN Government, Tamilnadu Water Investment Company Limited (TWIC), and ILFS Ltd, is registered under the GST Act 2017 vide GSTIN No. 33AAACN3562H1ZP (hereinafter referred as 'Applicant' or 'NTADCL'). The applicant has sought Advance Ruling on the following questions: a. Whether the following activities will suffer GST or not Main business activities: a) Sale of water b) Sewage treatment charges c) Consultancy Services such Detailed Project Report (DPR), Project Management Consultancy (PMC) and any other infrastructure related consultancy to TCMC / GoTN Incidental to main business activities d) Interest on receivable on delayed payments e) Disconnection Charges f) Reconnection charges g) Permanent disconnection charges h) Cheque Bouncing charges i) Non-Revenue - Service provided to Customer on New Connection works Concept of No Loss No Gain, New Connection Shifting and other works b. The company abstracts raw water from river Cauvery and supplies t....
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....bread, electrical energy, firewood, bangles, raw silk, agricultural implements, hearing aids, etc. It is important to that here the word WATER is appearing. Therefore, this notification is in favour of them, whereby the WATER is exempt. Further the entire activity undertaken by them is in relation of the activity as per Article 243W and 243G, wherein under BOOT agreement, the entire infrastructure was created by TN GOVT through SPV which is the applicant and it will be later taken over by the TN Govt as where is basis. Therefore, as per the notification No. 14/2017-C.T.(Rate), the entire activity of the applicant is exempt from CGST/SGST/IGST 2.3 The applicant at present has taken a stand as per the following Notifications and has not considered for tax, the Notifications which are as follows a) Notification No.. 2/2017 - Central Tax dated 28th June 2017 b) Notification No. 12/2017 dated 28th June 2017 c) Notification No. 14/2017 dated 28th June 2017. They had earlier approached Advocate and Consultant who had opined that they can avail the exemption as per the Notification. However in view abundant caution the Board of Directors has decided to a....
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....e assesee's claim to be considered exemption of GST under Notification 12/2017 read with Sl.No.3 and 3A. • NTADCL has been carrying on the following activities to TCMC & Merged Panchayat/ Wayside Village, TWAD board, Village Panchayat & Industries within Tirupur Local Planning Area (TLPA) agreed within the Concession Agreement • Tirupur Municipality is a local authority as per Section 2(69)(b) wherein it includes Municipality as defined in Clause e of Article 243P of the Constitution. Further it is a Municipality as defined in Article 243Q of the Constitution. TCMC, a body corporate having perpetual succession formed under the Tamil Nadu District Municipalities Act, 1920 having its principal office at Tirupur, acting through the Commissioner, Tirupur Municipality. • They had applied for a ruling in connection with the Pure service rendered to a governmental authority, State Government or Union territory or local authority or a Governmental authority by way of any activity in relation to any function entrusted to a Panchayat under article 243G of the Constitution or in relation to any function entrusted to a Municipality under article 243W of t....
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....d under Schedule II Clause 5(e) and Clause 5(f) and established the facts and circumstances to qualify for consideration of exemption under Notification No. 12/2017 read with Sl.No.3, 3A, they submit the following: o They have applied for a ruling in connection with the Pure service rendered to a governmental authority viz., TCMC by way of any activity in relation to any function entrusted to a Panchayat under article 243G of the Constitution or in relation to any function entrusted to a Municipality under Article 243W of the Constitution. Hence, the eligibility to consider the service rendered "water treatment and supply service and sewage offtake and treatment service" under the Concession Agreement be allowed to be exempt under Notification 12/2017 read with Sl.No.3, 3A under Chapter 99. o By virtue of the exclusivity clauses under Concession Agreement, they obtained Construction Management and Supervision Consulting Services (CMSCS) vide Contract no. 15223/2017/IHSDP-3 dated 02.12.2019 and the same could be brought within the ambit of "pure services" as it is an activity in relation to any function entrusted to a Municipality under Article 243W of the Constitu....
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....R/2018 dated 28.11.2018 in the case of Tamilnadu Water Investment Company Limited = 2019 (2) TMI 187 - AUTHORITY FOR ADVANCE RULING, TAMILNADU wherein the AAR had considered exemption for pure services provided to CMWSSB • M/s. Kerala State Construction Corporation Ltd. = 2019 (5) TMI 961 - AUTHORITY FOR ADVANCE RULINGS, KERALA wherein the DPR, PMC services rendered to Panchayat was allowed to be exempt by AAR, Kerala • Egis India Consulting Engineers Private Limited = 2018 (8) TMI 283 - AUTHORITY FOR ADVANCE RULINGS, MADHYA PRADESH wherein assisting in consultancy services to be provided to urban local bodies were exempted under 243G and 243W by AAR, Madhya Pradesh • The case laws relied on the ratio for services rendered to local authority is exempt are as follows: • Arihant Dredging Developers Private Limited in 11/WBAAR/2019-20 dated 27.06.2019 = 2019 (6) TMI 1342 - AUTHORITY FOR ADVANCE RULING, WEST BENGAL, the water infrastructure development was exempted under 243G. • Madhya Pradesh Pashchim Kshetra Vidyut Vitaran Company Limited = 2019 (1) TMI 419 - AUTHORITY FOR ADVANCE RULING, MADHYA PRADESH wherein the dist....
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....Water Drawal Agreement 7. Contract for Consultants services with Tiruppur City Municipal Corporation 8. Copy of MOU between TCIID, TEA and ILFS Ltd dated 25.08.1994 9. Copy of Service Agreement for supply to Industrial Unit 10. A Note on Water treatment Plant of the Assessee 11. Copy of Invoice for supply of water to domestic/TCMC 12. Copy of Invoice for Supply of Water to Industry 13. Copy of invoice for Sewage Collection 14. Copy of invoice for Connection charges 15. Copy of invoice for Reconnection charges 16. Letter from TCMC stating NTADCL to carry the activity They also filed Written Submission-2 along with the above documents wherein they have elaborated on 1. Note on Services Rendered to Government Agencies 2. Services Rendered to Industries within Tirupur Local Planning Area(TLPA) and Extended Area as per TCMC/GOTN approval 4.2 On the note on services rendered to Government Agencies, they inter-alia stated that: • NTADCL is rendering water treatment and supply services and sewage offtake and treatment services on 24 / 7 /365 basis and consultancy s....
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....distribution up to the point of supply and holds the entire assets including distribution network in the books of NTADCL. Whenever there are new connection requirements from TCMC or wayside villages, the same are provided by obtaining necessary advance from the authority. Any excess / short of advance received from the authority is adjusted by way of debit / credit note. As such, the incidence of provisioning of services in the instant case does not arise. o (v) Consultancy services to TCMC : NTADCL gets certain consultancy services requirement from TCMC by virtue of the CA entered. Currently, they had obtained a "Construction Management and Supervision Consulting Services" contract from TCMC. This being a pure service to be rendered to a local authority i.e, TCMC under Article 243W read with 1, 2 & 3 of 12th Schedule of Constitution of India, they seek exemption under Notification 12/2017 read with Item 3. 4.3 on the SERVICES RENDERED TO INDUSTRIES WITHIN TIRUPUR LOCAL PLANNING AREA (TLPA) AND EXTENDED AREA AS PER TCMC/GOTN APPROVAL they inter-alia stated that:- • The following specific services are rendered to industries within TLPA and extended areas as ....
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.....2017, would attract GST at "NIL' rate. Therefore, it is clarified that supply of drinking water for public purposes, if it is not supplied in a sealed container, is exempt from GST. As per the above, it is apparent that NTADCL is supplying potable water (drinking water) to TCMC, TWAD, Wayside villages, Panchayats and industries in the TLPA and extended areas for public purposes and the same is not supplied in sealed condition. Accordingly, even if the supply of water to industries interpreted as supply of Goods, the same is exempted under Notification 2/2017 Sl.No.99 read with Circular No.52/26/2018-GST. Copy of the Circular is enclosed • It is submitted that the following activity mentioned below from (ii) to (vi) are ancillary to the above mentioned activity under (i). The above activity are pure services rendered which are covered under Article 243W read with Item No.5 of 12th Schedule and Article 243G read with Item No. II of 11th Schedule. As they are rendering pure services to the Government agencies and accordingly they seek exemption under Notification No. 12/2017 Item No.3 and therefore the following services (ii) to (vi) are....
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.... of Tamilnadu (GOTN). By virtue of the CA read with Service Agreements entered with the industrial customers and in support of the exclusive CA given by GOTN/TCMC they render the pure service as contemplated under Article 243W read with Item 5 of 12th Schedule "Water supply for domestic, industrial and commercial purpose" on behalf of TCMC, who is otherwise responsible to supply water to industries under Article 243W read with Item 5 of 12th Schedule. This responsibility of TCMC was shifted in the hands of NTADCL by providing the CA. As such as NTADCL is empowered to perform the act of the Government authority in a specific manner with the guidance of CA and through Service Agreements to the industries within the TLPA and extended areas, they seek exemption under Notification 12/2017 read with Item 3 being pure services rendered to industries. • Despite the facts discussed above and eligibility of exemption, they would also like to seek shelter under Notification 12/2017 read with Item 4 reproduced below: "Services by Central Government, State Government, Union territory, local authority or governmental authority by way of any activity in relation to any funct....
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....is evident that NTADCL is being controlled by the Government and thus a Government authority under the GST act. • According to the definition under the Companies Act 2013, the control on NTADCL by Governmental authority is well established. More particularly, in the instant case, NTADCL was formed by GOTN through the guidelines provided vide G.O.(Ms) No. 119 dated 09.05.1995 wherein it has entrusted the formation of NTADCL through Tamilnadu Corporation for Industrial Infrastructure Development Limited (TACID) with a focus and objects listed vide Memorandum of Understanding dated 25.08.1994 between TACID, Tirupur Exporters' Association (TEA) and Infrastructure Leasing and Financial Limited (IL&FS). The main focus was to enhance Tirupur's industrial and export potential and the overall well-being of its population. GOTN vide its participation of appointed IAS officers in the Board, is maintaining control over the management of the Company and even though the Company is placed as a Special Purpose Vehicle (SPV) to execute the project in corporate - PPP model, it is 4 Governmental authority by virtue of the Company promoted specifically to execute the responsibility of TCM....
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....Para 3(C) of the Statement of Facts to the application. They further stated that they do not claim themselves as a 'Government Entity' as defined in the GST Law though they stress based on the Point of Control. 6.1 The applicant is under the administrative jurisdiction of Central Tax Authorities. The Central Jurisdictional authority vide their letter dated 19.03.2020 has stated that there are no proceedings pending in respect of the applicant. Regarding the taxability of the activities, they stated that i. the applicant is supplying service to Tirupur City Municipal Corporation, a Government body. CBIC vide circular No.52/26/2018-GST issued from F.No.354/255/2018-TRU (part 2) dated 09.08.2018 has clarified the applicability of GST on various goods and services, viz., extracted below: 6.2 Attention is drawn to the entry at S. No. 99 of notification No. 2/2017-Central Tax (Rate) dated 28.06.2017, by virtue of which water [other than aerated, mineral, purified, distilled, medicinal, ionic, battery, de-mineralized and water sold in sealed container] falling under HS code 2201 attracts NIL rate of GST. 6.3 Accordingly, supply of water, other than those excl....
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....ing their cost of the project in the name of water charge and sewage charge (Art 17 of the agreement), actually it is the consideration for the transfer of entire infrastructure facility built by the NTADCL to GOTN/ Tirupur City Municipal Corporation, maintenance in the concession period, water treatment and supply service, sewage offtake and treatment service ie. the total cost of the project. Hence the tax payer's supplies cannot be identified as merely sale of water or sewage treatment facilities or incidental activities. It is also stated in the SOF that the company's main objective is to promote infrastructure development activities in the area of water supply at Tirupur and implemented an Integrated Supply Project. Hence it is a composite supply by this company to GOTN / Tirupur City Municipal Corporation. • As per Notification no -12/2017, Central Tax (Rate), date 28.06.2017, only services by Central Government/ State Government/ Union Territory/Local Authority or Government authority by way of any activity in relation to any function entrusted to a municipality under Art 243W of the constitution is exempted. Exemption is allowed only when the services are suppl....
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....environmental protection services. 18% The rate of tax for other Activities incidental to Main business activities may be levied as that of the main activity. 8.1 We have considered the application filed by the applicant and various submissions made by them as well as the comments of the State and Central Tax officers. The issues raised before us is regarding the taxability of GST on the charges received in respect of the following activities/supplies made by the applicant by virtue of the concession agreement entered into by them with Government of Tarnilnadu (GOTN), Tiruppur Municipal Corporation (TCMC): Main business activities: a) Sale of water b) Sewage treatment charges c) Consultancy Services such Detailed Project Report (DPR), Project Management Consultancy (PMC) and any other infrastructure related consultancy to TCMC / GoTN Incidental to main business activities d) Interest on receivable on delayed payments e) Disconnection Charges f) Reconnection charges g) Permanent disconnection charges h) Cheque Bouncing charges i) Non-Revenue - Service provided to Customer on N....
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....ting to infrastructure it is opined that the same is a part of composite supply made to Government attracting GST@ 12%. 9.1 We find that the applicant is a Public Limited company registered as a company on 24.02.1995 with 1504 shares of which C.M.D, TACID holds I share and the rest are held by Non-Government entities. The main object of the company as per the MOA is To identify, formulate, promote, aid, assist, establish, manage and control schemes, projects or programmes for the provision and development of infrastructural facilities .......and other services of any description for the growth and development of industries and commerce or for any purpose whatsoever.....'. Articles of Association of the applicant defines "Project" as- "Project" means the development, financing, design, construction, ownership, operation and maintenance of the Concession, and related Facilities, Systems, and subsequent transfer of the Facilities and Systems, and all activities incidental thereto, including, without limitation, engineering, testing, commissioning and insurance of the facilities and the Systems and the determination, levy, collection, retention and appropriation of the char....
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.... Tirupur Municipality(TCMC) • Way side unions and villages within Tirupur Local Planning Area(TLPA) • Industries located outside the TCMC b. Design and construction of a water distribution system for TCMC c. Design and construction of a sewage collection system for TCMC d. Design and Construction of on-site sanitation facilities for slums within TCMC e. Design, construction, operation and maintenance of sewage treatment & disposal system for TCMC The applicant has been given the role of facilitating the provision of potable water, sewerage and low cost sanitation, within Tirupur and the Service Areas(wayside unions, villages, Industries) and a Concession Agreement has been entered into by the applicant with GOTN and TCMC on 11.02.2000. GOTN and TCMC have granted the applicant the concession for an initial period of thirty years to provide the services and for that purpose to develop, finance, design, construct, own, operate, maintain and transfer (BOOT) basis on strictly commercial principles on an integrated basis, the Water Treatment and Supply Facilities and Sewage Treatment Facilities including the right to draw w....
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....hout first offering to the applicant. Also, under Article 35.1 Of the CA, it is stated that GOTN and TCMC agree that the execution, delivery and performance by them of the CA agreement, the project contracts and all other agreements, contracts, documents and writings relating to the CA constitute private and commercial acts and not public or governmental acts. Thus, it follows that: • Concession agreement vests the right to draw the agreed quantity of raw water from Cauvery river on payment of Royalty to GOTN • The applicant is to develop, finance, design, construct, own, manage, operate the water treatment facility and supply the agreed quantity Of treated water at the water off take points to TCMC(for Domestic and Non-Domestic), Wayward Unions(for Domestic), Villages(for Domestic) and other • Purchasers(Non-domestic)in the Service Area apart from TCMC area • The applicant is to develop, finance, design, construct, own, manage, operate the Sewage treatment Facility and to treat the Sewage collected from the offtake points within the TCMC • The above facilities are to be transferred to TCMC/GOTN at the end of the Conc....
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....charges/HSN Code:2201, Misc. Charges-Interest on Delayed Payment; Debit Note-Meter Charges with CGST/SGST as 'Nil' • Invoice No. 40836 dated 31-Dec-2019 raised on Velmurugan Process for water charges/HSN Code:2201, Re-connection charges; Misc. Charges-Interest on Delayed Payment; Water Capacity charges (Take or Pay)-Dec '19; Water Capacity Charges for Disconnected Payment with CGST/ SGST as 'Nil' 10.1 With the above facts, we take up the issues before us for consideration. We find that the claim of the applicant is that the activities listed under 'Incidental to main activities' are to be considered as part of the main activities and the main activities of 'Supply of treated water', 'Sewage treatment services' and 'Consultancy services' are exempted under SI.No. 3, 3A,4 of Notification No. 12/2017-C.T.(Rate) dated 28.06.2017 read with SI.NO. 99 of Notfn. No. 02/2017-C.T.(Rate) dated 28.06.2017 and Notification No. 14/2017-C.T.(Rate) dated 28.06.2017. Their eligibility to the said Notifications are discussed as under. 10.2 Notification No. 14/2017-C.T.(Rate) dated 28.06.2017 as amended by Notification No. 16/2018-C.T.(Rate) dated 26.07.2018, effective from 27.07.2....
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....or (ii) established by any Government. with ninety per cent or more participation by way of equity or control, to carry out any function entrusted to a municipality under article 243W of the Constitution; From the above it is clear that only those • set up by an Act of Parliament or a State Legislature or established by any • Government; with ninety percent or more participation by way of equity or control; • to carry out any function entrusted under Article 243W of the Constitution are 'Governmental Authority' under GST Law. The applicant is not set up by any Act of the Parliament or a State Legislature or established by any Government. Further, as seen from the MOA, the company was set up initially with 1504 shares, of which TACID, a Governmental Authority held 1 share. Thus, the primary requirement of the above 'Explanation' is itself not satisfied in the case of the applicant. Also, from the terms of the CA, the base agreement for the activities of the applicant, it is clear that the agreement has been entered into on a commercially basis, wherein for the concession extended, the applicant is entitled to charge the ....
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....ems(WDS) metered therein. Thus in our opinion, this activity of treatment of water on own account and supply of water is sale simpliciter and therefore this notification which provides exemption to services do not have any application with regard to supply of water. 11.3 In respect of the Sewage treatment services rendered by the applicant in respect of TCMC, it is seen from the CA that the applicant has to off-take the sewerage, treat the same as per the specified standards and charge TCMC on the metered Sewerage treated. The Facility, Operation and Maintenance are at own cost of the applicant and during the concession period, the activity extended by the applicant is only collection of sewerage, treat the same in the facility owned & operated by them using the consumables, etc on own account. Thus, in this instant the supply made by the applicant is a pure service of an activity listed as Item 6 of 12th Schedule (Article 243W) of the Constitution, i.e., an activity entrusted to a Municipality and the supply is made to TCMC, a local authority by the applicant and therefore the exemption at SI.No. 3 of the Notification No. 12/2017-C.T.(Rate) is applicable to the case at hand and....
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....¢ support in establishing grievance redress mechanism acceptable to ADB under the project; etc. The applicant has provided copies of invoice raised on TCMC vide their letter dated 20th November 2020. On perusal of the Service Invoice No. CMSC/CHE/2019-20/01 ;/02;/03;/04 all dated 24.03.2020 raised for the months of August to November 2019. It is seen that one bill is raised per month claiming 'Professional Charges' and 'Reimbursable expenses'. From the above, it is seen that TCMC which is a Municipal Corporation intends to put up Water supply and underground sewerage project which requires planning, management etc and they have entrusted the project management to the applicant. Urban Planning, Water supply, Sanitation conservancy are various activities entrusted to the Municipalities as per 12^th Schedule (Article 243 W) of the Constitution and as already discussed, TCMC is a Municipal Corporation. The applicant extends 'Pure Services of Project Management' to TCMC in respect of this proposal and therefore the supply of the applicant is 'Service' eligible for exemption under SI.No. 3 of Notification No. 12/2017-C.T.(Rate) in as much as the said entry exempts any service, i.e.....
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....eaning unwanted heavier solid dust particle with reasonable colour so that it could be used for drinking purpose for public. Hence the process is considered as water treatment for making the raw water in to drinkable form and not purification of water. Moreover, the purified water is nothing but the water which is pure in terms of physiscally, chemically and biologically to meet out certain requirement. That is in terms of physical properties, it should meet out certain level of turbidity, colour etc., in terms of chemical properties, it should meet out certain level of PH, Total soluble salts, Iron content etc., and in form of biological properties it should be free from all contaminants such as virus, bacteria, protozoan etc, when it is used for drinking purpose. If any water with certain level of contaminants such as virus, bacteria, protozoan, etc, it should not be called as purified water though it met out specific standard of physical and chemical properties for drinking purpose. When there is biological contaminant in water it can be purified with the help of adding adequate amount of chlorine to that water to make it fit for drinking purpose, Further, the invoices furnished....
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.... Consumers outside the TCMC Area but covered in the Service Area as per CA as per the agreements entered into with such purchasers. It is TCMC who undertakes the supply of drinking water for the public and this is evident from the Invoice raised by the applicant on TCMC, wherein it is stated to add essential chlorine before distributing for Public. Thus the supply of water by the applicant is to TCMC for use by them for both domestic and non-domestic purposes and therefore the supply to TCMC is not only for further supply to public for drinking purposes. (ii) Further, my learned brother member has concluded that the supply to TCMC by the applicant is treated water and not 'purified' water in as much as the treatment process involves only cleaning up of dust particles and supplying in potable condition for the human consumption, which needs further addition of Chlorine as seen in the invoice and therefore merits exemption under Sl.No.99 of Notification No.2/2017-C.T.(Rate) dated 28.06.2017 and supply to industrial consumption without changing the original nature of the water to the WDS is not a supply for drinking purpose and therefore not eligible to the exemption. From th....
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....pe of treatment on raw water abstracted by the applicant for supply of the treated water to the different clause of the designated receivers. Purification/treatment is not defined per se. Further, as can be seen from Wikipedia 'Water purification' is the process of removing undesirable chemicals, biological contaminants, suspended solids, and gases from water achieved by the physical processes such as filtration, sedimentation, distillation; biological process such as slow sand filters; chemical process such as flocculation and chlorination. and 'Water Treatment' is any process that improves the quality of water to make it appropriate for a specific end-use It is further stated that 'A combination selected from the following processes (depending on the season and contaminants and chemicals present in the raw water) is used for municipal drinking water treatment worldwide.' - From the above, the process for treatment of water for municipal water supply involves Pre-chlorination, disinfection, sedimentation, filtration, flocculation, electrolysis, slow sand filtration, etc and 'Water purification' also involves the process of removing u....
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....eatment as the main activity. We do not agree to this contention. The applicant charges their customers for the Supply of water as per the charges fixed under CA readwith Section 11.1 (A) of the BWSA and for treatment of Sewage as fixed under Section 11.1 (B) of the BWSA. The delayed payment charges are not part of these charges. Section 15 of the GST Act, which provides for Value of a Supply, states that: 15. (1) The value of a supply of goods or services or both shall be the transaction value, which is the price actually paid or payable for the said supply of goods or services or both where the supplier and the recipient of the supply are not related and the price is the sole consideration for the supply In the case at hand, the charges for 'Sale of Water' and 'Sewage off-take and Treatment Service' is fixed as per Section 11.1 of the BWSA and the 'Delayed payment Interest' is not one of the components to arrive at the charge for these main supply. This is further evident from the Invoices raised, wherein, under Misc. Charges-Interest on Delayed Payment' is raised and the same is not raised as part of Main business Charges. Further, As per Section 11.4 of the BW....
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....o. 11/2017- C.T.(Rate) dated 28.06.2017 readwith Sl.No. 35 of Notification No. II(2)/CTR/532(d-14)/2017 vide G.O. (Ms.) No.72 dated 29.06.2017 as amended. c. Connection services on no profit and no loss cost recovery basis: The applicant has stated that they had initially set up the entire infrastructure facility for water drawal, treatment, storage and distribution up to the point of supply and holds the entire assets including distribution network in their books and whenever there are new connection requirements from TCMC or wayside villages, the same are provided by obtaining necessary advance from the authority and provide the connection; that any excess/short of advance received from the authority is adjusted by way of debit/ credit note. The applicant has furnished Letter from TCMC Roc. No. E.2/5802/2005 dated 29.06.2005, wherein the applicant has been asked to lay separate distribution main. Apart from this letter the applicant has not furnished any further document with regard to TCMC. In as much as the activity rendered is in relation to setting of new distribution lines in the current project as per the CA, and such lines are held as their assets in thei....
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....o.3 of Notification No.12/2017- C.T.(Rate) dated 28.06.2017 for the reasons discussed in Para 11.3 above. c. The Consultancy Services rendered by the applicant to Tiruppur City Municipal Corporation in respect of the Project- Construction Management and Supervision Consulting Service to assist Project ULBs - Tiruppur City Municipal Corporation exempt under SI.No.3 of Notification No. 12/2017- C.T.(Rate) dated 28.06.2017 for the reasons discussed in Para 11.4 above. d. In respect of the activities incidental to main business activities, it is rules as under : i. Interest on receivable on delayed payments being charges received for 'Agreeing to tolerate an act' classifiable under SAC 999794 is taxable @ 9% CGST and 9% SGST as per Sl.No. 35 of Notification No. 11/2017- C.T.(Rate) dated 28.06.2017 readwith. Sl.No. 35 of Notification No. II(2)/CTR/532(d-14)/2017 vide G.O. (Ms.) No.72 dated 29.06.2017 as amended for the reasons discussed in Para 13. 1(a) above. ii. Cheque Bouncing Charges being charges received for 'Agreeing to tolerate an act' classifiable under SAC 999794 is taxable @ 9% CGST and 9% SGST as per Sl.No. 35 of Notification No. 11/2017- C.T.(Rate) d....