TaxTMI 
TaxTMI 
2025 (6) TMI 330
X X X X Extracts X X X X
X X X X Extracts X X X X
....acts 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 silver ornaments. Sometimes they also outsource these proces....
X X X X Extracts X X X X
X X X X Extracts X X X X
....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 can be used, and whether the details of the package contents (such as silver) be omitted for safety purposes. 5) HSN Codes for Silver Products: There is ambiguity in the classification of certain si....
X X X X Extracts X X X X
X X X X Extracts X X X X
....dmissibility 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 services or both, within the meaning of that term. 6.2 The 1st question raised by the applicant is "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....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ay 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 question raised by the applicant is "For safety purposes, is it appropriate to mention the legal name on shipping labels and also ship the bills with discreet packaging?" It could be seen that the above query refers to 'discreet packaging', 'safety purposes', and whether to mention the legal name on the shipping labels, which are procedural in nature and which a....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ds 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 within the same State or to a place outside the State on a delivery challan along with the e-way bill wherever applicable and the invoice may be issued at the time of delivery of goods. For this purpose, the person carrying the goods for such supply can carry the invoice book with him so that he can issue the invoice once the supply is fructified. 4. It is further clarified that all such supplies, where the supplier carries goods from one State to an....
X X X X Extracts X X X X
X X X X Extracts X X X X
....rvices 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. and generation of e-way bills thereof .- (1) Where- (a) a Commissioner of State tax or Union territory tax mandates furnishing of information regarding intra-State movement of goods specified against serial numbers 4 and 5 in the Annexure appended to sub-rule (14) of rule 138, in accordance with sub-rule (1) of rule 138F of the State or Union territory Goods and Services Tax Rules, and (b) the consignment value of such goods exceeds such amount, not below rupees two lakhs, as may be notified by the Commissioner of State tax or U....
X X X X Extracts X X X X
X X X X Extracts X X X X
....er 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 challan in lieu of invoice, the same shall be declared as specified in rule 138." Accordingly, the provisions relating to rule 138 which lays down the procedure for raising E-way Bills cater to all the situations, viz., in relation to a supply, for reasons other than supply, and for inward supply from an unregistered person. Rule 138 of the CGST Rules, 2017, runs as - "138. Information to be furnished prior to commencement of movement of goods and generation of e-way bill .- (1) Every registered person who causes movement of goods of consignment value exceeding fifty thousand rupees- (i) in relation to a supply; or (ii) for reasons other than supply; or ....