TaxTMI 
TaxTMI 
2025 (11) TMI 58
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....Therefore, unless a mention is particularly made to such dissimilar provisions, a reference to the CGST Act, 2017 would also mean reference to the corresponding similar provisions in the APGST Act, 2017. 3. It is observed that the queries raised by the applicant fall within the ambit of Section 97 of the GST ACT. The Applicant enclosed copies of challans as proof of payment of Rs. 5,000/- for SGST and Rs. 5,000/- for CGST towards the fee for Advance Ruling. The Applicant has declared that the questions raised in the application have neither been decided by nor are pending before any authority under any provisions of the GST Act. 4. Brief Facts of the case: M/s Janaki Maha Lakshmi Traders (the Applicant/the Company), is carrying on two business verticals, namely; (1) Trading of Cement and Iron and (2) Transportation of goods by Road. (1) Trading of Cement and Iron: The applicant stated that; (a) He make sale of cement and iron both to wholesale and retail customers being registered or unregistered persons and (b) Also make sales to M/s Janaki Maha Lakshmi Steels bearing GSTIN 37BJAPJ8822R1ZK for which his mother is the proprietrix. Copy of her aadhar ca....
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....ervices or both shall be the 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 the price is the sole consideration for the supply." From the above provision, it is clear that transaction value i.e. the mutually agreed price by both the seller and buyer shall be the value of supply subjected to two conditions • Supplier and buyer shall not be related persons as defined explanation to section 15(5) of GST Act, 2017. • . Price is the sole consideration for the supply. i.e. money shall be the only consideration and there shall be no other consideration in any other form. Therefore, transaction value shall be the value of supply U/s. 15 of GST Act, 2017 where supplier and buyer are unrelated and price is the sole consideration for the said supply. For Question 2 As per section 15(4) of GST Act, 2017 "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." From the above provision, it is clear th....
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....or the purpose of section 15 of this act in case of a transaction between distinct or related persons. For Question 3 and 4 a. As per clause (a) serial no. 18 of the notification no. 12/2017-Central tax rate dated 28-06-2017, services by way of transportation of goods is exempted except the services of goods transport agent or a courier agency. b. Therefore, Taxability of services of transportation of goods by road is depends on whether such transporter is GTA or not. Therefore, if such transporter is a GTA i.e. Goods Transport Agent, such services are taxable under forward charge mechanism or reverse charge mechanism at the option of the GTA. c. Thus, it is pertinent to know that all transporter of goods are not goods transport agents but whereas all goods transport agents are goods transporters. d. As per definition (ze) of serial no. 18 of the notification no. 12/2017-Central tax rate dated 28-06-2017, "goods transport agency" means any person who provides service in relation to transport of goods by road and issues consignment note, by whatever name called. e. Form the above definition, it can be seen that issuance of consignment note is sine - qua - non for s....
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....ng the course of transportation. Therefore, he did not issue any document as acknowledgement for receipt of goods except a bill. The applicant contended that as per clause (a) serial no. 18 of the notification no. 12/2017-Central tax rate dated 28-06-2017, services by way of transportation of goods is exempted except the services of goods transport agent or a courier agency and therefore, taxability of the same depends on whether such transporter is GTA or not; that as per definition (ze) of serial no. 18 of the notification no. 12/2017-Central tax rate dated 28-06-2017, "goods transport agency" means any person who provides service in relation to transport of goods by road and issues consignment note, by whatever name called; that issuance of consignment note is sine - qua - non for supplier of service to be considered as GTA; that in his case, he neither issues consignment notes nor assume lien of goods. Therefore, he is not a GTA. Thus, freight charges received for transportation of goods by road is exempted form GST. Moreover, services in relation to transportation of goods by GTA to unregistered persons is also absolutely exempted U/s. 11(1) under entry no. 21A by the notif....
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.... As per explanation (a) to sec 15 of the CGST Act, persons shall be deemed to be "related persons" if: (i) such persons are officers or directors of one another's business; (ii) such persons are legally recognized partners in business; (iii) such persons are employer and employee (iv) any person directly or indirectly owns, controls or holds twenty five percent or more of the outstanding voting stock or shares of both of them; (v) one of them directly or indirectly controls the other; (vi) both of them are directly or indirectly controlled by a third person; (vii) together they directly or indirectly control a third person; or (viii) they are members of the same family; Where the supplier and recipient are related, other than where the supply is made through an agent, then value of supply shall be determined in accordance with rule 28 of the CGST Rules. Broadly, these rules provide the manner of determination of value of supply based on open market value followed by value of like kind ad quality. If value of supply still cannot be determined, then basis of cost plus 10% will be adopted, followed by re....
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....stered person the applicant is bound to issue a document by whatever name it is called even for the supplies made to unregistered persons. Further, there may be a situation where the applicant likely to supply the goods to a registered person later. In such a situation being a registered person the applicant has to issue a consignment note or invoice by whatever name called to the recipients either by opting for forward charge or reverse charge . Hence, the applicant will fall under the GTA service. Serial No. 21A of Notification No. 32/2017 Central Tax (Rate) dated 13.10.2017 is extracted hereunder for ready reference: SI.No. Chapter, Section, Heading, Group or Service Code (Tariff) Description of Services Rate (per cent.) Condition (1) (2) (3) (4) (5) 21A Heading 9965 or Heading 9967 Services provided by a goods transport agency to an unregistered person, including an unregistered casual taxable person, other than the following recipients, namely: - (a) any factory registered under or governed by the Factories Act, 1948(63 of 1948); or (b) any Society registered under the Societies Registration Act, 1860 (21 of 1860) or ....