AI OCR 
TaxTMI 
TaxTMI 
TaxTMI 
2022 (1) TMI 1110
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....ody of the State Government of Uttarakhand and registered with GSTIN-05AAALA1356K1ZF under the CGST Act, 2017 read with the provisions of the UGGST Act, 2017 (hereinafter referred to as 'the applicant'). 2. (i) The applicant is involved in the business of forest plantation, tapping, storage and sale /supply of Lisa/Resin etc. (ii) Lisa/Resin tapping are broadly divided into two categories: - Category-1: - Tapping/ extraction of Lisa/Resin from reserved forest, van panchayat and civil forest by the selected bidder/contractor. Category-2: - Tapping/ extraction of Lisa/Resin from private (Naap) land on the basis of permit issued by the applicant. The processes for both the categories are as under: Category-1: - For the purpose of tapping/ extraction of Lisa/Resin from reserved forest, van panchayat and civil forest and transporting it to the Motor Road Depot (Godown) various bonds/bids are issued by the applicant. The winning bidder/contractor undertakes the said work, at the prescribed rates, as per the terms & conditions of the bids. As per the terms & conditions of the bids, only empty tins are provided by the applicant for storage of Lisa/Resin and rest of the expe....
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....both the categories after the receipt of extracted Lisa/Resin at the Motor Road Depot (Godown), total control and supervision is under the applicant and also the transportation of Lisa/Resin collected at Motor Road Depot to Rail Head Depot (Kathgodam) is done by the applicant through separate tender. At the time of Sale of Lisa/Resin (through open auction) at Rail Head Depot (Kathgodam), applicable GST is paid. In view of the above facts the applicant has sought advance ruling on the following questions:- 1. Does the entire work is liable under GST? 2. Who is liable for GST, the department or the bidder? 3. What will be the applicable rate of GST for such activity? 4. What will be the classification of HSN/SAC code for such activity? Services - Sale - 5. At which point/time of supply, GST is liable to be paid? 6. On which amount GST should be paid? Whether the taxable amount will include all charges i.e. loading, unloading, tapping & transportation charges? 7. Whether GST TDS (@2% applicable) is liable to be deducted by the department from the payment made to bidder? 8. Does every contractor should be registered under GST working with the department for any typ....
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....t of Uttarakhand and registered with GSTIN-05AAALA1356K1ZF in Uttarakhand at Forest Compound, Mall Road, Almora, Uttarakhand - 263601 and in their application dated 23.11.2021, the applicant submitted graphical chart for both the categories. 8. We take up the issues involved one by one. Category -1: The contractor i.e. the winner of the bidding process, after tapping/extracting, collects and store the Lisa /Resin in the tins provided by the applicant and transport it to the Motor Head Depot and in the process incur various expenditures. Upon deposit of the total quantity of Lisa /Resin mentioned in the bidding document, the applicant makes payment to the contractor at the rate mentioned in the bidding document. Category -2: The Permit holder undertakes tapping/extraction of Lisa /Resin in the tins arranged by them and transports it to the Motor Head Depot. The applicant issues a receipt to the permit holder for the quantity of Lisa deposited. The Lisa/ Resin is then transported to Rail Head Depot (Kathgodam) and upon final sales through open auction) from there, payment is made to the permit holder after deducting applicant contribution @15%, Income tax TDS @ 2%, Expenditure of ....
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.... supply is part of such consideration. b) Likewise we observe that an individual permit holder is engaged in supply of goods i.e. Lisa/ Resin after extracting / tapping it from the Chir/Pine trees located on the private (Naap) land. Thereafter, the individual permit holder transports the extracted Lisa/ Resin to the Motor Road Depot (Godown), which is a supply of service. Tapping/ extraction of Lisa/ Resin and its transportation to Motor Road Depot (Godown) is a composite supply and, hence, applicable GST for composite supply is payable by the contractor. Tax rate of the principle supply will apply on the entire supply, since extracted goods i.e. Lisa/ Resin is the principal supply and the transportation of the same to the Motor Head Depot is another supply and the transportation cannot be done separately, if there are no goods. We further find that once the Lisa/ Resin is deposited at the motor head depot (godown), total control and supervision is under the applicant i.e. the ownership of the goods is with the applicant, all the expenses incurred till such deposit, becomes part of taxable value of such composite supply. In view of the above position, applicable GST is payable by....
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....housand rupees (excluding the amount of central tax, State tax, Union territory tax, integrated tax and cess indicated in the invoice), hence TDS as applicable under the provisions of law has to be deducted by the applicant being a Government body while making payments for the supply of goods as well as services. 10.7 The liability to pay applicable GST at the time of final sale (after open auction) of Lisa/Resin lies with the applicant and all the expenses incurred from tapping/extraction to final sale including all incidental expenses namely loading unloading, transportation etc. form the part of taxable value. 11. In view of the discussions held above, we rule as under: RULING 1. Yes, all the activities are liable to GST. 2. a) The contractor, undertaking tapping /extraction and collection of Lisa/Resin, from the Chir/Pine trees located on the reserved forest, van panchayat and civil forest, is liable to payment of GST on composite supply. b) An individual permit holder, undertaking tapping /extraction and collection of Lisa/Resin, from the Chir/Pine trees located on the private (Naap) land, is liable to payment of GST on composite supply. 3 The activity by contractor / i....