In re Chhattisgarh State Power Generation Company Limited (GST AAAR Chhattisgarh)
In a significant ruling by the Appellate Authority for Advance Ruling (AAAR) in Chhattisgarh , the applicability of Goods and Services Tax (GST) on the payments made by Chhattisgarh State Power Generation Company Limited (CSPGCL) to the Forest Department for Abhivahan Shulk has been scrutinized.
Case Background
CSPGCL, a state-owned enterprise involved in power generation, appealed against an Advance Ruling Authority (AAR) order that mandated GST on Abhivahan Shulk. The company argued that these payments, made for transit permissions for coal extracted from forest areas, should be exempt from GST under certain provisions of Notification No. 12/2017-Central Tax (Rate), dated 28.06.2017.
Issues Raised
1. GST Exemption Based on Notification No. 12/2017:
- CSPGCL claimed that the Abhivahan Shulk should be exempt under Sl. Nos. 4 and 5 of the notification, as the payments are for services related to “Urban forestry, protection of the environment, and promotion of ecological aspects,” functions entrusted to municipalities and panchayats under Articles 243G and 243W of the Constitution.
2. GST Exemption for Transactions Below ₹5000:
- The company also argued that each transaction of Abhivahan Shulk, being less than ₹5000, should be exempt from GST under Sl. No. 9 of the same notification, as it does not qualify as a continuous supply of service.
AAR Ruling
