Classification of service- The appellant has filed this appeal requesting advance ruling in respect of the following questions:-
1. Applicability of GST Notification No. 12/2017-Central Tax (Rate) dated 28-06-2017 regarding GST exemption to an entity registered under section 12-AA of Income Tax Act, 1961 with regard to services provided by CREDA, scrap battery sale and sale of tender forms.
The appellant CREDA is the nodal agency of the State Government for tapping the renewable sources of energy and for implementation of various project of public interest and for research, development and popularization of non-conventional & renewable sources of energy with Central Finance Assistance provided by the Ministry of New and Renewable Energy, Govt. of India, New Delhi.
The appellant seeks ruling as regards the exemption of GST as under Notification No.12/2017-Central Tax (Rate), dated 28th June 2017, with regard to services rendered by them, being an entity registered under Section 12AA of the Income Tax Act, 1961 by way of activities claimed to be charitable activities, on the services provided by CREDA like registration fees, supervision/service charges, processing fees, RVE connection charges, processing fees (Sour-Sujila), entry fees to energy park, penalty charges received, Re issuance charges, scrap battery sale & sale of tender forms.
On the above issue, the AAR has ruled that “the said supply of goods or services as brought about by the appellant, Chhattisgarh state renewable energy development agency, Raipur C.G, under their application dated 13-11-2019 are not exempted from the payment of GST under Sr. No. 1 of the Notification No. 12/2017 – Central Tax (Rate) dated 28.06.2017 and parallel notifications under CGGST and IGST. Hence, the appellant is liable to pay GST on the impugned supply of goods or services.”
The appellant cannot he treated as charitable activities as envisaged under the statute, as the above mentioned fees/ charges are being collected from the channel partners/ contractors/consumers as a consideration for tender work/supply of services, provided to them.
Hence, the said supplies being not covered under the definition of charitable activities as envisaged, the impugned services / supply of goods rendered by the appellant are not covered under Sr.no. I of Notification No. 12/2017 - Central Tax (Rate) dated 28.06.2017.
Held that- there is no merit in the appeal filed by the Appellant against the advance ruling order. Accordingly and the said order is upheld.