TaxTMI 
TaxTMI 
2021 (12) TMI 33
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....in the Indore district of the state of Madhya Pradesh (452001). The Applicant is having a GST registration with GSTIN 23AAYPC2644L1ZG. 2. The provisions of the CGST Act and MPGST 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 MPGST Act. Further, henceforth, for the purposes of this Advance Ruling, a reference to such a similar provision under the CGST or MP GST Act would be mentioned as being under the GST Act. 3. BRIEF FACTS OF THE CASE - 3.1. GULAB SINGH is proposed to open a new business venture of PAN SHOP. The Business model of PAN SHOP would be selling Pan Masala,....
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....Tobacco Products? 5. DEPARTMENT'S VIEW POINT- No view from the jurisdictional officer was communicated to this authority. 6. RECORD OF PERSONAL HEARING - 6.1 Mr. Rachit Bhandari, Chartered Accountant and the jurisdictional officer (SGST) appeared for personal hearing through virtual hearing. Mr. Rachit reiterated the submissions already made in the application. and attached additional submissions as follows: 6.2. As per Section 10 of the CGST Act, 2017 A registered person is eligible is eligible for Composition scheme if aggregate turnover in the preceding Financial year does not exceed Rs. 1.5 crores (75 lakhs for special category states). Since the applicant is registered under the State of Madhya Pradesh which is not a sp....
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....vice Provider Two and a half per cent. of the turnover in the State or Union territory Two and a half per cent. of the turnover in the State or Union territory) (c). Other Suppliers Half per cent. of the turnover of taxable supplies of goods and services in the State or Union territory Half per cent. of the turnover of taxable supplies of goods and services in the State or Union territory Based on the above table, we can interpret that the dealers or traders of tobacco. Ice Cream, pan masala, or aerated waters can opt for composition scheme. Further section 10, clearly describes that the manufactures of tobacco, ice cream, pan masala and aerated waters cannot opt for composition scheme. However, law does not restrict the c....
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.... carry out for the eligibility of composition scheme under section 10 of the CGST/SGST Act, 2017 as the Applicant propose to carry out with the business of Pan Masala & tobacco products as a trader. There is no business of Ice cream products. 6.12. Again on 2nd September 2021 the Applicant made a declaration on the products in which we are going to trade in the Pan Shop that the sale of products which he is going to engage. in the business of Pan Shop. Therefore he will be dealing in all types of products related to Pan and its products and the necessary items which are generally accepted in Pan shop in the general trade parlance. 7. DISUSSIONS AND FINDINGS - 7.1. We have carefully considered the submissions made by the applicant i....
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....are not leviable to tax under this Act. 7.5. The applicant has stated vide its letter dated 02.09.201 that it shall he engaged in the supply of Pan (betel leaves). As per Entry No. 93 in Notification No. 02/2017-Central Tax (Rate), Pan or Betel Leaves as they are known. is taxed at NIL rate under this Act. The entry is given herein below: S.No. Chapter / Heading / Sub-heading / Tariff item Description of Goods (1) (2) (3) 93. 1404 90 40 Betel leaves 7.6. Supplementary Note - 1 to Chapter 21. of the Customs Tariff contains the definition of Pan Masala. The extract is as under: "1. In this Chapter, "Pan Masala" means any preparation containing betel nuts and any one or more of the following ingredient....
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....ning or not containing other ingredients are sold which amounts to manufacture of Gutka. Preparation of Gutka in the Pan Shop is akin to manufacture on account of the process of preparation being that of mixing of different bought out ingredients 4nd the resultant product having a distinct name and use. Thus the preparation of Gutka at the Pan Shop for sale is covered in the Second Proviso of Notification No. 14/2019-CT. In the Table given in Notification No. 14/2019-CT both Pan Masala and goods covered under Chapter 24 are listed as goods for which composition cannot be obtained. The table is as under: TABLE SI. No. Tariff item, sub-heading, heading or Chapter Description (1) (2) (3) 1. 2105 00 00 Ice cream an....