Case Law Details
In re Purewal Stone Crusher (GST AAAR Uttarakhand)
Taxability of Abhivahan Shulk and Khanij Sampada Shulk –
Abhivahan Shulk is paid to TVPV only by the license holders and in lieu of this fee, the govt, agency is ensuring the right of passage as well as continued maintenance of supplies. Similarly, Khanij Sampada Shulk is paid only by the lease holders who have been given the right to extract, transport and sell RBM by the District Geology & Mining Department who are providing service to the lease holder through allowing right of mining and passage and ensuring supply and ensuring the fulfilment of all other conditions of the lease agreement. Both these fees are collected from a particular class of people i.e. holders of licence/lease allotted by the respective govt, agencies, who are providing the said services only to those particular group of people and not to the general populace. Thus quid pro quo between the person paying the fee and the collecting agency is very much present and both the cases qualify as ‘services’ and both the fees are ‘consideration’ in terms of GST Act definition. Accordingly both the fees are to be included in the taxable value, as defined in Section 15 of the GST Act 2017, of the service and are taxable to GST at appropriate rates as held by the AAR.
Penalty paid on stock of RBM on the orders of DM is outside the scope of supply or in the alternative it is an exempt service under GST and hence not taxable under RCM
FULL TEXT OF ORDER OF APPELLATE AUTHORITY OF ADVANCE RULING, UTTARAKHAND
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