The Applicant is not eligible for exemption from CGST/SGST, as provided in S.No.18 of notification No. 12/2017 Central Tax Rates on Onshore Services Contract as GST is applicable on the freight charges in terms of Section 8 of the CGST Act 2017.
Authority for Advance Ruling — Applicability of the tax exemption on services by the way of transportation of goods by road – The applicant is an associate of the Joint Venture of M/s Siemens AG, Germany (Lead Partner) and M/s Sumitomoto Electric Industries Ltd., Japan. The said JV entered into a contract with Power Grid Corporation of India Ltd., which involved supply of equipment and services both offshore and onshore basis. With respect to onshore supply of goods, the terms of contract provide for supply of goods on ex-works basis. The Applicant through a separate Contract is entrusted with responsibility of delivery of goods at customer's site. For this the Applicant engages local transporters who issue consignment notes to the Applicant for such transportation of goods and issue their freight invoices on the Applicant. The Applicant sought an advance ruling on the applicability of the tax exemption as provided under S No. 18 of the notification no. 12/2017-Central Tax Rates dated 28-06-2017, where in, services by the way of transportation of goods by road has been exempted except the services of a GTA.
Held that:- The Hon’ble Authority ruled that the Applicant is not eligible for exemption from CGST/SGST, as provided in S.No.18 of notification No. 12/2017 Central Tax Rates dated 28-06-2017 and the corresponding S. No. 18 of Notification No, 43/5T2 dated 30-06-2017 issued by Haryana Govt., as GST is applicable on the freight charges in terms of Section 8 of the CGST/SGST Act, 2017.
The Applicant is not eligible for exemption from CGST/SGST, as provided in S.No.18 of notification No. 12/2017 Central Tax Rates on Onshore Services Contract as GST is applicable on the freight charges in terms of Section 8 of the CGST Act 2017.
Authority for Advance Ruling — Applicability of the tax exemption on services by the way of transportation of goods by road – The applicant is an associate of the Joint Venture of M/s Siemens AG, Germany (Lead Partner) and M/s Sumitomoto Electric Industries Ltd., Japan. The said JV entered into a contract with Power Grid Corporation of India Ltd., which involved supply of equipment and services both offshore and onshore basis. With respect to onshore supply of goods, the terms of contract provide for supply of goods on ex-works basis. The Applicant through a separate Contract is entrusted with responsibility of delivery of goods at customer's site. For this the Applicant engages local transporters who issue consignment notes to the Applicant for such transportation of goods and issue their freight invoices on the Applicant. The Applicant sought an advance ruling on the applicability of the tax exemption as provided under S No. 18 of the notification no. 12/2017-Central Tax Rates dated 28-06-2017, where in, services by the way of transportation of goods by road has been exempted except the services of a GTA.
Held that:- The Hon’ble Authority ruled that the Applicant is not eligible for exemption from CGST/SGST, as provided in S.No.18 of notification No. 12/2017 Central Tax Rates dated 28-06-2017 and the corresponding S. No. 18 of Notification No, 43/5T2 dated 30-06-2017 issued by Haryana Govt., as GST is applicable on the freight charges in terms of Section 8 of the CGST/SGST Act, 2017.