In re Sri Lakshmi Ganesh Cement And Iron General Stores (GST AAR Andhra Pradesh)
M/s Sri Lakshmi Ganesh Cement And Iron General Stores, a registered person operating in Chagallu, Andhra Pradesh, filed an application for an Advance Ruling under the Central Goods and Services Tax Act, 2017, and the Andhra Pradesh Goods and Services Tax Act, 2017. The applicant sought clarification on the Value of Supply for trading cement and iron and the taxability of transportation services provided by road.
Applicant’s Business Verticals and Queries
The applicant operates two business verticals:
1. Trading of Cement and Iron: Sales are made to both wholesale and retail customers (registered or unregistered). Notably, sales are also made to M/s Sri Lakshmi Ganesh Steels, a firm for which the applicant’s wife is the proprietrix, establishing a related person transaction.
2. Transportation of goods by Road: The applicant uses a tempo van to provide services primarily to unregistered persons (farmers or individuals). The applicant stated that he does not issue any document as an acknowledgement for the receipt of goods, only a bill, and the goods are transported at the consignor’s risk.
The four questions raised before the Authority were:
1. Value of Supply to an Unrelated Person: What is the value of supply under Section 15 of the GST Act, 2017, for cement and iron sales to an unrelated person when the price is the sole consideration?
