Levy of GST- In the instant case, 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, agent stationery charges, compensation of handling and evaporation loss over the basic purchase price.

Following questions has ben raised for advance ruling- 

(i) Whether the applicant is a service provider or suppliers of goods?

(ii) Whether the output tax is chargeable on the total consideration received or only on the basic price?

(iii) Whether an agent of S K Oil lies under the category of fair price shop?

The moot question involved in the instant case is to determine the value of supply of Superior Kerosene Oil (SKO) made by the applicant to MR Dealers (ration dealers) in terms of the license granted by the Director of Consumer Goods, Government of West Bengal.

Held that- The applicant is found to be engaged in supply of Superior Kerosene Oil. Tax would be levied on the entire value of supply. 

In the instant case, the applicant being an agent who is licensed to supply S.K. Oil to dealers cannot be regarded as ‘Fair Price Shop’.