TaxTMI 
TaxTMI 
2025 (6) TMI 330
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.... by the applicant by fraud or suppression of material facts or misrepresentation of facts, shall render such ruling to be void ab initio in accordance with Section 104 of the Act. 5. The provisions of both the Central Goods and Services Tax Act and the Tamil Nadu Goods and Services Tax Act (herein referred to as the Act) are the same except for certain provisions. Therefore, unless a mention is specifically made to such dissimilar provisions, a reference to the Central Goods and Services Tax Act would also mean a reference to the same provisions under the Tamil Nadu Goods and Services Tax Act. M/s. PSB Traders, (Legal Name : Paaragiri Balaraman Nagarajeswaran) No.2, 52, Sri Saurashtra Marriage Hall, Kumararaswamy Street, Shevapet, Salem 636 002 (hereinafter called as the "Applicant") are registered under the GST Act with GSTIN 33AXAPN5016C124. The applicant has stated that they are engaged in the business of crafting sliver products using raw materials like silver and copper. These materials come in various purities, affecting the value of the silver bars. They purchase silver bars from vendors located outside Tamil Nadu, process them along with copper and fashion them into s....
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.... Statement of relevant facts having a bearing on the questions raised by the applicant as follows: 1) Barter Exchange: The business mode of applicant involves crafting new silver ornaments from old or scrap silver supplied by my vendors. In return, new silver ornaments are supplied to them, often without any financial transactions. Clarification is sought on whether this barter system is considered a taxable supply under GST. 2) E-Way Bill Exemption for Silver Ornaments: Serial Numbers 150 and 151 of the GST exempt list specify that jewellery and precious stones are exempt from the E-Way Bill requirement. Confirmation on whether this exemption applies to silver ornaments is requested. 3) Reverse Charge Mechanism (RCM): Based on their understanding, RCM only applies when job work is conducted by an individual for a body corporate. Job Work performed by individuals for a proprietorship concern should not fall under RCM. Confirmation of this interpretation is sought. 4) Packaging Confidentiality: Due to the high value of silver ornaments, and to maintain confidentiality on shipping labels and packaging, whether legal name instead of my trade name ca....
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....ct of :- (a) Classification of any goods or services or both; (b) Applicability of a notification issued under the provisions of this Act; (c) Determination of time and value of supply of goods or services or both; (d) Admissibility of input tax credit of tax paid or deemed to have been paid; (e) Determination of the liability to pay tax on any goods or services or both; (f) Whether applicant is required to be registered; (g) whether any particular thing done by the applicant with respect to any goods or services or both amounts to or results in a supply of goods or services or both, within the meaning of that term. In the instant case, it is seen that as per SI.No.13 of the Application for Advance ruling filed by the applicant, they have raised nine questions seeking answers under the following categories, viz., (1) Classification of any goods or services or both, (2) Applicability of a notification issued under the provisions of this Act, and (7) whether any particular thing done by the applicant with respect to any goods or services or both amounts to or results in a supply of goods or s....
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....e supplier applies such deposit as consideration for the said supply; In view of the above, it becomes quite clear that barter system is covered under the scope of 'supply' and specifically exchange of silver scrap for finished ornaments will be considered a 'supply' under the GST law, despite the absence of monetary payments. In this regard, it may also be noted that Schedule I to the CGST Act, 2017, specifies activities to be treated as supply even if made without consideration. 6.3 The 2nd question raised by the applicant is "If Job Work is performed by an unregistered individual, does RCM apply? Additionally, does RCM cover job work provided by individuals to proprietorship concerns?" In this regard, it is informed that Notification No.13/2017, CT(R) dated 28.06.2017, as amended, has clearly enumerated the situations which warrant payment of GST under reverse charge mechanism (RCM), and it can be seen that 'job-work' does not figure as one of the activities/situations listed therein. Once it becomes clear that 'job work' is not part of the said notification, the question of answering the above query does not arise. 6.4 The 3rd questio....
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....sued a clarification on issues wherein the goods are moved within the State or from the State of registration to another State for supply on approval basis, the extract of which is given below :- "2. It is seen that clause (c) of sub-rule (1) of rule 55 of the Central Goods and Services Tax Rules, 2017 (hereafter referred as "the said Rules") provides that the supplier shall issue a delivery challan for the initial transportation of goods where such transportation is for reasons other than by way of supply. Further, sub-rule (3) of the said rule also provides that the said delivery challan shall be declared as specified in rule 138 of the said Rules. It is also seen that sub-rule (4) of rule 55 of the said Rules provides that "Where the goods being transported are for the purpose of supply to the recipient but the tax invoice could not be issued at the time of removal of goods for the purpose of supply, the supplier shall issue a tax invoice after delivery of goods". 3. A combined reading of the above provisions indicates that the goods which are taken for supply on approval basis can be moved from the place of business of the registered supplier to another place ....
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....SN 7117), stand exempted from E-way Bill generation at the national level, i.e., for inter-state supplies. As far as intra-state movement of such goods is concerned, we find that the Commissioner of State Tax, Tamilnadu state, in exercise of the powers conferred under clause (d) of sub-rule (14) of rule 138 of the TNGST Rules, 2017, has declared that no E-way Bill is required to be generated for intra-state movement within the state of Tamilnadu in respect of value and goods notified in the rule 138 of Tamilnadu Goods and Services Tax Rules, 2017, until further orders, by way of issue of Notification No.6 of 2018 dated 28.03.2018 issued in Rc.46/2018/Taxation/A1. 6.7.4 However, it is imperative to mention here that based on the recommendations of the 50th GST Council, Rule 138F was inserted vide Notification No. 38/2023-Central Tax dated 04.08.2023, which provides for an option to the respective State or Union Territory to make generation of E-way bill mandatory or otherwise, as far as intra-state movement of the goods in question is concerned. The said provision runs as, "138F. Information to be furnished in case of intra-State movement of gold, precious stones, etc. a....
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....s observed that the provisions of rules 55 and 138 of the CGST Rules, 2017 takes care of these situations as well, apart from 'supply'. In this regard, it could be seen that the provisions of Rule 55 of the CGST Rules, prescribes the procedure to be followed while transporting goods without issue of invoice, in the case of job work and for reasons other than by way of supply also, as reproduced below :- "55. Transportation of goods without issue of invoice.- (1) For the purposes of- (a) supply of liquid gas where the quantity at the time of removal from the place of business of the supplier is not known, (b) transportation of goods for job work, (c) transportation of goods for reasons other than by way of supply, or (d) such other supplies as may be notified by the Board, the consigner may issue a delivery challan, serially numbered not exceeding sixteen characters, in one or multiple series, in lieu of invoice at the time of removal of goods for transportation, containing the following details, namely :- ----------------- ----------------- (3) Where goods are being transported on a delivery ch....
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....es to the procedure for making payment of job-worker, and accounting of the value involved, which are procedural in nature, and which does not fall within the scope of Section 97 (2) of the CGST/TNGST Acts, 2017. 7. In view of the aforesaid discussions, we rule as under: RULING SI.No. Query raised by the applicant Ruling issued 1 Does barter exchange apply to B2B transactions where payments are made without the involvement of bank transactions? Specifically, is the exchange of silver scrap for finished ornaments under GST laws considered a supply, despite the absence of monetary payments? Barter system is covered under the scope of 'supply' and specifically exchange of silver scrap for finished ornaments will be considered a 'supply' under the GST law, despite the absence of monetary payments. 2 If Job Work is performed by an unregistered individual, does RCM 'apply? Additionally, does RCM cover job work provided by individuals to proprietorship concerns? As job-work does not attract RCM, the question of answering the said query does not arise. 3 For safety purposes, is it appropriate to mention the legal name on shipping....