Case Law Details
In re Fortune Agro Impex (GST AAR Karnataka)
The case of Fortune Agro Impex before the Authority for Advance Ruling (AAR), Karnataka, revolves around the applicability of GST on subsidies to farmers. This application under Section 97 of the CGST Act, 2017 sought clarity on whether GST is chargeable on subsidies availed from the Central and State Governments.
Fortune Agro Impex, engaged in trading agricultural machinery and implements, faced a crucial question concerning GST implications. Despite their initial application, the company decided to withdraw their query before the AAR. This withdrawal signifies their internal resolution or potentially reconsidering the implications of GST on their business operations.
In conclusion, the ruling on Fortune Agro Impex’s application for advance ruling is dismissed as withdrawn.
FULL TEXT OF THE ORDER OF AUTHORITY FOR ADVANCE RULING, KARNATAKA
M/s. Fortune Agro Impex, No.343, Fortune House, Kengunte 1st Main Mallathahalli Lake Road, 9th Block Sir M Vishvesvaraya Layout, Bengaluru – 560056 having GSTIN 29AABFF9815D1ZF have filed an application, online, for Advance Ruling under Section 97 of CGST Act, 2017 read with Rule 104 of CGST Rules, 2017 and Section 97 of KGST Act, 2017 read with Rule 104 of KGST Rules, 2017.
2. The Applicant stated that they are dealers in Agricultural Machinery & Implements and its spares & accessories; they import the said goods by paying applicable IGST and sell the said goods locally by charging &, collecting CGST & KGST through their dealers all over Karnataka; they have to supply their products directly to the farmers, only at subsidized cost; a Circular from the Joint Commissioner of Agricultural Department insisted them not to collect GST on subsidy availed from Central & State Government.
3. The applicant, in view of the above, sought advance ruling in respect of the question “Whether the GST is applicable or not on subsidy to the farmers”?
4. The applicant had not submitted the hard copies of the instant application and on enquiry they informed through e-mail dated 18.03.2024 that they intend to withdraw the application and requested to permit them to withdraw the instant application.
5. In view of the above, we pass the following,
RULING
The application filed by the applicant for advance ruling is disposed off as withdrawn.
