Advance Ruling— In the instant case, the applicant (M/s. Singareni Collieries Company Limited) is entering into contracts with a host of vendors/suppliers for extraction of coal. In the process, they are procuring diesel and supplying the same to their contractors free of cost. They are desirous of ascertaining their liability under GST when such diesel is supplied free of cost. 

Question raised for advance ruling is as follows—

Clarification on determination of transaction value in case of supplies made free of cost by recipient by suppliers as per terms of contract.

Held that— The commodity ‘Diesel’ is covered under Entry 54 to the List II of the Schedule VII to the Constitution of India and therefore it is excluded from levy of GST and hence beyond the scope of Chapter XVII of the CGST Act, 2017. Hence the application is rejected.