As no exemption is available for transportation services provided by Goods Transport Agency in respect of tax free goods, the applicant is liable for payment of tax under RCM u/s 9(3) of the CGST Act, 2017.
Authority for Advance Ruling — Registration for supply of tax free goods – The applicants are in business of processing and selling vegetable seeds and cereal seeds through their dealer network under their brand name in different packing sizes. Processing of seeds are done in their in house facility. The Company engages contract farming to produce and multiply the seeds and process the same at their processing units and packs and sells those seeds to the farmers for sowing. The applicant sought an Advance Ruling as to whether registration is required in case of supply of tax free goods under GST Act, (ii) Whether assessee is liable to pay tax under RCM u/s 9(3) of Act,2017 for transportation services for transporting tax free goods; (iii) That if reply to query number (ii) is negative, whether registration is required under GST Act; (iv) Whether registration is required under Act, 2017 for interstate supply/sales of tax free goods; (v) Whether GST registration can be surrendered if we are not liable to pay RCM us 9(3) of Act 2017 and not liable to be registered under Act.
Held that:- The Hon’ble Authority for Advance Ruling held that the Person engaged in supply of exempted goods or services or both, which are not liable to be taxed, shall not be liable to be registered under the Act. As no exemption is available for transportation services provided by GTA in respect of such goods under Notification No.12/2017-CT (Rate), dt.28.06.2017, the applicant is liable for payment of tax under RCM u/s 9(3) of the Act. In case the applicant is engaged exclusively in supply of exempted goods [and also not receiving any taxable services liable to RCM under GST provisions], registration is not required. In case the applicant availed services of GTA for transportation of goods, they would be liable to pay GST under RCM u/s 9(3), consequently they will be liable to be registered under the Act, 2017.
As no exemption is available for transportation services provided by Goods Transport Agency in respect of tax free goods, the applicant is liable for payment of tax under RCM u/s 9(3) of the CGST Act, 2017.
Authority for Advance Ruling — Registration for supply of tax free goods – The applicants are in business of processing and selling vegetable seeds and cereal seeds through their dealer network under their brand name in different packing sizes. Processing of seeds are done in their in house facility. The Company engages contract farming to produce and multiply the seeds and process the same at their processing units and packs and sells those seeds to the farmers for sowing. The applicant sought an Advance Ruling as to whether registration is required in case of supply of tax free goods under GST Act, (ii) Whether assessee is liable to pay tax under RCM u/s 9(3) of Act,2017 for transportation services for transporting tax free goods; (iii) That if reply to query number (ii) is negative, whether registration is required under GST Act; (iv) Whether registration is required under Act, 2017 for interstate supply/sales of tax free goods; (v) Whether GST registration can be surrendered if we are not liable to pay RCM us 9(3) of Act 2017 and not liable to be registered under Act.
Held that:- The Hon’ble Authority for Advance Ruling held that the Person engaged in supply of exempted goods or services or both, which are not liable to be taxed, shall not be liable to be registered under the Act. As no exemption is available for transportation services provided by GTA in respect of such goods under Notification No.12/2017-CT (Rate), dt.28.06.2017, the applicant is liable for payment of tax under RCM u/s 9(3) of the Act. In case the applicant is engaged exclusively in supply of exempted goods [and also not receiving any taxable services liable to RCM under GST provisions], registration is not required. In case the applicant availed services of GTA for transportation of goods, they would be liable to pay GST under RCM u/s 9(3), consequently they will be liable to be registered under the Act, 2017.