TaxTMI 
TaxTMI 
2020 (7) TMI 793
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.... assessee under GST having GSTN: 09AACCS4253J2Z5. 2) The Applicant is a limited company engaged in manufacturing of paper out of indigenous and imported waste paper. As regard to the imported waste paper, the applicant has submitted that the Customs duty is paid on the CIF value. Once the paper is manufactured, the applicant shows value of goods and freight separately on the invoice and pays GST on the invoice value. 3) Accordingly, the Applicant has submitted application for Advance Ruling dated 06.02.2020 enclosing duly filled Form ARA-01(the application form for Advance Ruling) along with certain annexure and attachments and sought Advance Ruling as follows : - i. When GST has been paid on the freight in the case of indigenous suppli....
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....y a GTA, the recipient of the service will be one only and if the supplier has availed the service on behalf of the buyer and are covered under the category of recipient of service in term of column 4 of table, he has to pay tax. In that case, the buyer of the goods does not appears to have availed the service of GTA. ii. As regard, second question is concerned, there are judgments of Hon'ble High Court of Gujrat and other High Courts which are self explanatory and no comments can be offered at this stage. iii. As per records no case/enquiry/investigation on such issue are pending against the applicant at present. 7). The applicant was granted a personal hearing in the matter. In compliance, Sh. R.C. Gupta, Advocate/ Authorized rep....
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....this Advance Ruling, a reference to such a similar provision under the CGST Act / UPGST Act would be mentioned as being under the `CGST Act'. 9). We have gone through the submissions made by the applicant and have examined the explanation submitted by them. At the outset, we find that the issue raised in the application is squarely covered under Section 97(2)(e) of the CGST Act 2017 being a matter related to determination of the liability to pay tax on any goods or services or both. We therefore, admit the application for consideration on merits. 10). We have gone through the submissions made by the applicant and examined the detailed explanation submitted by them. We observe that the questions before us to decide is to whether:- i.....
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.... Now coming to the first question regarding liability of GST on the freight paid on indigenous supply, we observe that, vide Notification No. 13/2017-Central Tax (Rate) dated 28.06.2017 (as amended) the Central Government has notified the certain category of person liable to pay tax under reverse charge basis. As per this Notification the tax liability on the goods transport agency service is to be discharged under the reverse charge mechanism, in case the service recipient falls under the specified category. As per entry no. 01 of the said Notification:- SL.No. Category of Supply of Services Supply of Services Recipient of service 1 Supply of Services by a goods transport agency (GTA) in respect of transportation of goods by road t....
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....13). As regard to the applicant's case we observe that the applicant is a limited company incorporated under the Companies Act and engaged in the manufacturing and supply of the paper. Hence, the Notification No. 13/2017-CT (Rate) dated 28.06.2017 (as amended) is squarely applicable on them and they are liable to pay the GST on the freight paid, under the reverse charge mechanism. As far as double taxation is concerned, we observe that this is a revenue neutral exercise, having no additional financial impact on the applicant. We also observe that as per the mandate provide to the Advance Ruling Authority, under Section 97 of the CGST Act, 2017, the Authority has to decide specific issues, as specified under Section 97(2) of the CGST Act....
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....ices supplied by a person located in non-taxable territory by way of transportation of goods by a vessel from a place outside India up to the customs station of clearance in India. A person located in non-taxable territory Importer, as defined in clause (26) of section 2 of the Customs Act, 1962 (52 of 1962), located in the taxable territory. Thus, in terms of the Notification No. 10/2017- Integrated Tax (Rate) dated 28.06.2017 (as amended), in the case of import of goods on CIF basis, the applicant is liable to pay GST on the component of Ocean freight paid by the foreign supplier to the shipping company. 16). We also observe that similar views have been observed by the Authority for Advance Ruling for Uttrakhand, vide Advance Ruling ....