TaxTMI 
TaxTMI 
2022 (3) TMI 1145
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.... Clearing and Forwarding services and Other allied services for import & export of cargo and for coastal movements. The appellant plans to own a fleet of commercial vehicles like trailers and also hires necessary vehicles from market as well. The appellant has submitted that they are in process of entering into an agreement with a specific client engaged in the business of Export of Rice. The appellant has planned to provide following services at a single consolidated rate (per container) for the entire bundle of services: (1) Clearing and Forwarding Agency with the help of sister concern, as the CHA License is in the name of a sister concern M/s. SRS Cargo. (2) Transportation of cargo containing agricultural produces, Rice, Tea etc. (3) Providing labours for loading of cargo into containers. (4) Transportation of empty container from CFS / empty container yard to client's warehouses at various locations (5) Other allied services like: - Lift on/Lift off charges to CFS/empty container yard - Survey Tally formality for goods loaded in container - Obtaining Customs permission for self-sealing (6) Obtaini....
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....s). Thus, the GAAR has given answer to all the four questions as under: "Answer: In view of non-submission of copies of agreement or any other relevant documents with regard to the services to be supplied/provided by the applicant, no decision can be taken in the matter for the reasons discussed hereinabove." 5. M/s. Shree Arbuda Transport has filed an appeal with us against the aforesaid Ruling under the provisions of Section 100 of the CGST and GGST Acts, 2017. In the Grounds of Appeal, the appellant has inter alia submitted that an Advance Ruling can be sought when a taxpayer wants to know the implication of prevailing tax law in the business proposition; that non-submission of an agreement cannot be a ground for declaring questions as hypothetical. Now, in this appeal proceedings, the appellant has submitted a Draft Agreement (unsigned), and stated that it would be implemented once the provision of law are clear. 6. The appellant has made following submissions: Question-1: Mixed Supply or Composite Supply Section 2(30) of the CGST Act, 2017 defines 'composite supply' as under: "(30) "composite supply" means a supply made by a taxable person to a re....
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.... Tax is applicable on Clearing and Forwarding services i.e. 18%. Therefore, the entire bundle will be taxed at 18%. As the bundled service in question is a combination of services, it will be classified under HSN 999799 bearing description ' Other Services nowhere else classified'. Question-3: Availment of ITC by appellant In view of the fact that the bundle services consists of few supplies which are exempt under GST, the appellant intends on providing the entire bundle service at a fixed consolidated rate. The appellant further intends on charging GST at the rate of 18% on entire bundle. The appellant has submitted that they fulfill all the conditions of Section 16(2) of the CGST Act, 2017 and they are eligible to claim Input Tax Credit with regards to the Inward Supplies procured for making the subject outward supply. However, as per the provision of Sec 17(2) of CGST Act, 2017, the Input Tax Credit attributable to exempt supplies must be reversed by the taxpayer. The appellant further submitted that as the tax on entire bundles service is being discharged at 18%, the supplies which would have enjoyed exemption is also being taxed at 18%. Therefore, the appellant is ....
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....ant has collected the Ruling from Registry on 21.01.2021. So, we observe that the present appeal filed on 06.02.2021 against the Ruling dated 17.09.2020, has been filed within the prescribed time limit of 30 days from the date of communication of Ruling, as prescribed under Section 100(2) of the CGST Act, 2017. 9. Even otherwise, the last date for filing appeal stands extended w.e.f. 15.03.2020 in view of the Orders dated 23.03.2020 and 27.04.2021 of Hon'ble Supreme Court in Suo Motu Writ Petition (Civil) No. 3/2020 read with CBIC Circular No. 157/13/2021GST dated 20.07.2021. FINDINGS: 10. We do not agree with the views of Gujarat Authority for Advance Ruling to the effect that Ruling cannot be provided in absence of signed Agreement. The very purpose for creating the Authority for Advance Ruling is to help the applicant in planning his activities and bringing in certainty in determining tax liabilities. So, there is nothing wrong if any the applicant seeks Advance Ruling by describing his activities in detail before signing an Agreement. It is open for the Advance Ruling Authority to seek more details, clarification or supporting documents from the applicant. In this c....
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.... :- Obtaining Custom related certificates / clearing like Bill of Lading, Health Certificate, Non GMO, Phyto, Drawback updations, Certificate of Origin, mention in Shipping Bill - MEIS/DFIA/EPCG/Advance Authorisation as per government schemes, complete documentation for export shipment and legalization of documents with foreign consulates, Obtaining Custom Permission for Self Sealing. 3. Weighment :- Weighment of empty / loaded containers at warehouse and loaded at port gates. 4. CFS Services :- Lift on charges to CFS / Empty Container Yard. 5. Labour Services :- Providing labour through independent Service Providers for loading of cargo into containers. 6. Movement Making Services :- Filing of shipping instructions, filing of VGM, clearing of EGMs and other movement making services. 7. Survey of Goods Loaded :- Survey Tally formality for goods loaded in the container. OTHER SERVICES 1. Transportation of cargo of Principal's commodities / containers from factory/warehouse to CFS / port; and Transportation of empty container from CFS / Empty container yard to party warehouses in various locations. 2. Examination....
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.... invoice duly signed by authorized representative for payment. UNQUOTE 14. In the Draft Agreement submitted by the appellant, the details of consideration has been described as under: QUOTE ANNEX A-2: DETAILS OF CONSIDERATION The Service Provider shall be paid at a single consolidated rate for each 20' container of export consignment. The Service Provider shall prepare and submit invoices to the Principal on per consignment basis. Details of consideration payable for the different locations have been incorporated hereunder: Sr.No. Location Size of Container Diesel Base Rate (Rs.) Base Rate per Container (Rs.) 01 Kandla-Gandhidham- Kandla 20' 61.82 7,675/- (plus 18% GST*) 02 Mundra-Gandhidham- Mundra 20' 54 11,150/- (plus 18% GST*) > 61.82 11,432/- (plus 18% GST*) 02(A) Mundra-Gandhidham- Kandla 20' Sr.No.2 + addition of Rs. 688 per container (plus 18% GST*) *GST Rates shall be applicable as notified by the Government from time to time - Above base rate per containers is the minimum guaranteed consideration per container, as per the diesel rate mentioned in above table. ....
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....ainers and the like by refrigerator vehicles, trucks, trailers, man or animal drawn vehicles or any other vehicles Heading 9967 Supporting services in transport Group 99671 Cargo handling services 996711 Container handling services 996712 Customs house agent services 996713 Clearing and forwarding services 996719 Other cargo and baggage handling services Group 99679 996711 Other supporting transport service 996791 Goods transport agency services for road transport 996799 Other supporting transport services nowhere else classified Heading 9985 Support services Group 99851 Employment services including personnel search, referral service and labour supply service 998519 Other employment and labour supply services nowhere else classified Heading 9997 Other services Group 99979 Other miscellaneous services 999799 Other services nowhere else classified 17. After going through the nature of services to be provided by the appellant, we find that the a....
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....ous services including services nowhere else classified). 9% 9% 18% --- Sr.No.35 of Notification No. 11/2017-Central Tax (R) dated 28.06.2017. Sr.No.35 of Notification No. 11/2017-State Tax (R) dated 30.06.2017. Sr.No.35 of Notification No. 8/2017-Integrated Tax (R) dated 28.06.2017. Service Code (Tariff) 999799 Other services nowhere else classified 9% 9% 18% --- 18. From the above Table, it can be seen that the services provided by a Goods Transport Agency (GTA) by way of transport of Rice in goods carriage attracts Nil rate of GST; whereas, all other services like Clearing & Forwarding, Labour Supply for loading & unloading, obtaining Customs related certificates and allied/support services attract 18% GST. As the appellant intends to supply all these services as a bundle for a single consolidated rate, supply of such bundled services would be either 'composite supply' or 'mixed supply', as defined under the provisions of Section 2(30) and Section 2(74), respectively, of the CGST Act, 2017. 19. Definition of the term 'composite supply', as given in Section 2 of the CGST Act is as under: "(30) "composite supply" means a s....
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....fil in this case. It is clear that there is two or more individual supply of services in this case, which can be supplied separately, but the appellant intends to make such supplies as a combination or in conjunction with each other for a single price. This supply does not constitute a composite supply, as discussed hereinabove. We find that the appellant intend to supply of various different services in conjunction with each other for a single price, which is an important requirement for treating this supply as mixed supply. Thus, we agree with the contention of the appellant that their proposed supply of bundled services for a single price would be treated as 'mixed supply' under the provisions of CGST/GGST Acts. 21. Now, coming to the question regarding rate of GST on such mixed supply, we reproduce Section 8 of the CGST Act, 2017, as under: "SECTION 8. Tax liability on composite and mixed supplies. - The tax liability on a composite or a mixed supply shall be determined in the following manner, namely :- (a) a composite supply comprising two or more supplies, one of which is a principal supply, shall be treated as a supply of such principal supply; and ....
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....ng taxed at 18% (under mixed supply); therefore they would not rendering any exempt supplies; and therefore they wish to claim ITC. The apprehension of the appellant is that part ITC should not be denied by tax authorities on the ground that the individual supply of transportation of rice by GTA attracts Nil rate of GST. In this case, the appellant has chosen to provide various services in conjunction of each other for a single price and such services are to be treated as mixed supply, as held by us. The single price to be charged by the appellant attracts the highest rate of 18% and the said single price includes the value of transportation of rice. So, there should be no question of denying ITC merely on the ground that one of the constituent service of mixed supply attracts Nil rate of tax, if provided separately. 25. Now coming to the last question as to whether the exporter client would be eligible to claim refund of GST paid by appellant on their outward supply. We find that this question is not related to appellant, but it is related to the exporter, who has not filed the application for Advance Ruling before GAAR or appeal before us. We are of the view that the appellant....