In re M/s. Robo Silicon Pvt Ltd (GST AAR Andhra Pradesh)
What is the classification for the services received by M/s Robo Silicon Private Limited from the state of Andhra Pradesh for which Royalty is being paid by Robo Silicon Private Limited? Whether the said service can be classified under the heading 9973 specifically under 997337 as Licensing services for the right to use minerals including its exploration and evaluation or any other service under Notification No. 11/2017- Central Tax (Rate) dated 28.06.2017?
What is the applicable rare of GST on the services received by M/s Robo Silicon Private Limited?
Since the applicant intended to withdraw their application, we find no reason to go into the merits of the case and accordingly the Application is disposed off.
FULL TEXT OF ORDER OF AUTHORITY OF ADVANCE RULING,ANDHRA PRADESH
(Under sub-section (4) of section 98 of Central Goods and Service Tax Act, 2017 and under sub- section (4) of Section 98 of Andhra Pradesh Goods and Services Tax Act, 2017)
1. The present application has been filed u/s 97 of the Central Goods & Services Tax Act, 2017 and AP Goods & Services Tax Act, 2017 (hereinafter referred to as CGST Act and APGST Act respectively) by M/s Robo Silicon Pvt Ltd, (hereinafter referred to as applicant), registered under the Goods & Services Tax
2. The provisions of the CGST Act and APGST Act are identical, except for certain provisions. Therefore, unless a specific mention of the dissimilar provision is made, a reference to the CGST Act would also mean a reference to the same provision under the APGST Act. Further, henceforth, for the purposes of this Advance Ruling, a reference to such a similar provision under the CGST or AP GST Act would be mentioned as being under the GST Act.
1. Brief Facts of the case:
M/s Robo Silicon Pvt Ltd, is a registered firm with GSTIN 37AABCR6567R2ZF and located at D.No.278, Paritala Gramapanchayati, Kanchekarcherla Mandal, Paritala, Krishna, Andhra Pradesh – 521180, engaged in manufacturing and supply of sand and construction materials. The applicant has obtained mining rights from the Government of Andhra Pradesh for quarrying minerals from the mines within the state of Andhra Pradesh. The applicant extracts the boulders from the mines and converts those boulders into plastering sand, Robo sand and 20mm/12mm/lOmm metal by crushing the boulders. The plastering sand and Robo sand is classifiable under SI. No. 113, whereas the 20mm/12.5mm/lOmm metals are classifiable under SI.No. 126 of schedule 1 under the headings 2505 and 2517 respectively under Notification No.01/2017- Central Tax (Rate) dated 28.06.2017 and the applicable rate of CGST is @2.5%. Presently, the applicant is paying dead rent/seignorage fee (“Royalty”) to the Government of Andhra Pradesh and discharging GST @18% on Royalty amount under reverse charge.
On Verification of basic information of the applicant, it is observed that the applicant falls under State jurisdiction, Assistant Commissioner, Ibhrahimpatnam Circle 0/o. the No.1 Division, Vijayawada. Accordingly, the application has been forwarded to the State jurisdictional officer, Assistant Commissioner, Ibhrahimpatnam Circle, No.1 Division, Vijayawada and a copy marked to the Central Tax authorities to offer their remarks as per the Section 98(1) of CGST /APGST Act 2017. In response the jurisdictional officer concerned stated that there are no pending proceedings relating to the applicant and no proceedings were passed on the issue, for which the advance ruling sought by the applicant.
2. Questions Raised Before the Authority:
a) What is the classification for the services received by M/s Robo Silicon Private Limited from the state of Andhra Pradesh for which Royalty is being paid by Robo Silicon Private Limited? Whether the said service can be classified under the heading 9973 specifically under 997337 as Licensing services for the right to use minerals including its exploration and evaluation or any other service under Notification No. 11/2017- Central Tax (Rate) dated 28.06.2017?
b) What is the applicable rare of GST on the services received by M/s Robo Silicon Private Limited?
3. Applicant’s Interpretation of Law and Facts:
The applicant had taken the following stance while interpreting the legal provisions and relevant tariff notifications for all the three contracts as under The Applicant believes that the said services shall be classifiable under the Service Accounting Code (SAC) 9973 and shall be liable to GST (CGST and SGST) at the rate of 5% as it is covered under entry no. (viii) of serial number 17 of the Notification No. 11/2017 – Central Tax (Rate) dated 28.06.2017.
Notification No. 11/2017 – Central Tax (Rate) dated 28.06.2017.
Notification No. 11/2017 – Central Tax (Rate) (as amended from time to time) specifies the applicable rate of tax that shall be levied on intra-State supply of services. Similar notification is issued under the Andhra Pradesh State GST Act vide G.O. Ms No. 259 -Rev(CT-II) Dept. dated 29.06.2017.
The relevant entry under the above referred Notification
