TaxTMI 
TaxTMI 
2022 (4) TMI 401
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....Authority for Advance Ruling Regulations, 2018. 1.1 At the outset, we would like to make it clear that the provisions of the Central Goods and Services Tax Act, 2017 (the CGST Act, for short) and the West Bengal Goods and Services Tax Act, 2017 (the WBGST Act, for short) have the same provisions in like matter except for certain provisions. Therefore, unless a mention is specifically made to such dissimilar provisions, a reference to the CGST Act would also mean reference to the corresponding similar provisions in the WBGST Act. Further to the earlier, henceforth for the purposes of these proceedings, the expression 'GST Act' would mean the CGST Act and the WBGST Act both. 1.2 The applicant submits that he is an agent of Indian Oil Corporation Limited (IOCL) and is engaged in the distribution of Superior Kerosene Oil (SKO) for domestic purposes to fair price dealers. The applicant procures S.K. Oil directly from Indian Oil Corporation Ltd (IOCL) and supplies the same as per instruction of Government of West Bengal at a sale price which is also fixed by the Government. The State Government allows some commission on different heads like agent commission, agent transport charges....
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....t can supply as an agent is also fixed by the District Controller, Food and Supplies, Government of West Bengal which, in addition to the price of SKO, includes agent commission, agent transport cost, agent stationery cost, agent compensation of handling loss. 2.4 The applicant submits that ever since the roll out of the GST Act, he has been charging output tax on the total consideration received (basic price of SKO + agent commission + agent transport cost + agent stationery cost + agent compensation of handling loss) in consonance with price list issued by the Government of West Bengal. This is in accordance with the provisions as envisaged in sub-section (1) of section 15 of the GST Act read with section 9 of the Act ibid. 2.5 Sub-section (1) of section 15 of the GST Act reads as follows: "The value of supply of goods or services or both shall be 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 price is the sole consideration for the supply." 2.6 However, the District Controller, Food and Supplies has issued an instruction vide m....
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.... both of the supplier and the recipient are directly or indirectly controlled by the third person. The applicant, the supplier in the instant case, and the recipient, the SKO dealers, in the instant case are directly/indirectly controlled by the third person, in the instant case - the Directorate of Consumer Goods, Foods and Supply Department, Govt. of West Bengal. Hence, the value of supply should be determined according to the provisions made under section 15(4) of the said Act which reads as: "(4) Where the value of the supply of goods or services or both cannot be determined under sub-section (1), the same shall be determined in such manner as may be prescribed" Determination of Value of supply has been prescribed in Chapter IV of WBGST/CGST Rules,2017 in rules from 27 to 35 and the instant case matches with the provisions made under rule 30 of the said rules which states that- "30. Value of supply of goods or services or both based on cost. - Where the value of a supply of goods or services or both is not determinable by any of the preceding rules of this Chapter, the value shall be one hundred and ten percent of the cost of production or manufacture or th....
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....ommodities against ration documents" 4.6 It appears from the above definition that a fair price shop is licensed to sell public distribution commodities against ration documents i.e., a fair price shop supplies S.K. Oil, along with other public distribution commodities, to the ration card holders only. 4.7 The applicant, on the other hand, procures S.K. Oil from the Oil Marketing Company and supplies the same to the MR Dealers (ration dealers). We are, therefore, of the view that the applicant cannot be regarded as a 'fair price shop'. 4.8 According to the rate chart fixed by the District Controller, Food and Supplies, Government of West Bengal, the applicant is required to charge tax only on the base price of Kerosene although the applicant receives consideration in respect of other elements like agent's commission, agent's transport charges, stationery charges, compensation on handling & evaporation loss. 4.9 The officer concerned from the revenue has submitted that the value of goods should be the cost of acquisition of kerosene oil and the incidental expenses including the commission charged by the supplier (the applicant) to the recipients (SKO dealers). 4.10 In....