In re Meera Tubes Pvt. Ltd. (GST AAR Uttar Pradesh)
Q-1 What should be the Correct Classification with respect to the nature of “Supply “ i.e Whether the Questioned Supply tantamount to “Supply of Goods” or “Supply of services” on the basis of the facts of the Whole Activity as mentioned above and Supported by the Documents enclosed / discussed here under?
Ans- The nature of Supply is Supply of Goods .
Fabrication of tank from steel plates supplied free of cost from M/s IOCL is manufacture as per CGST Act, 2017. Accordingly, supply of tanks by the applicant is supply of goods.
Q-2 Whether Circular No. 126/45/2019-GST dated 22/11/2019 shall at all apply in the instant case if answer to Query (a) is “Supply of Service” as job Work service?
Ans- Not Answered as the nature of Supply is Supply of Goods.
Q-3 What should be the Correct HSN/SAC code Application to the said Supply?
Ans- HSN 7309
Q-4 What is Applicable Rate of Tax of GST based on Answers of Queries mentioned in Above Queries?
Ans- The Rate of GST is 18% (9% CGST & & 9% SGST or 18% IGST).
FULL TEXT OF ORDER OF AUTHORITY OF ADVANCE RULING, UTTAR PRADESH
ORDER UNDER SECTION 98(4) OF THE CGST ACT, 2017 & UNDER SECTION 98(4) OF THE UPGST ACT, 2017
1. M/s Meera Tubes Pvt. Ltd. C-15, Bulandshaher Road Industrial Area, Ghaziabad, Uttar Pradesh 201009 (here in after referred to as the applicant) is a registered assessee under GST having GSTN: 09AAACM7896F1ZO.
2. The applicant is engaged in “Fabricating Tank” for M/s. Indian Oil Corp. Ltd. (hereinafter referred to as “IOCL”) U.P. State Office-2 (which covers Moradabad, Agra & Noida Divisional offices) and for Delhi & Haryana State office (which covers Gurgaon and Delhi Divisional offices). The applicant has submitted as under-
(a) For the said purpose-
(i) UPSO-2 office of M/s IOCL has issued a tender document vide Tender TNo. R.CC/NR/UPSO-II/ENG/PT-84/2018-19 concerning Rate Contract for Fabrication and Transportation of 20 KL &70 KL Horizontal Tanks including transportation of Steel Plates from its Depot to Applicant’s works, for Dehradun, Bareilly, Moradabad, Agra & Noida Divisional offices of IOCL.
(ii) Delhi & Haryana State office of IOCL has issued a tender documents vide Tender No. R.CC/NR/DSO/ENG/PT-109/2018-19 concerning Rate Contract for Fabrication and Transportation of 20 KL & 70 KL Horizontal Tanks for Delhi, Gurgaon, Hissar & Pani pat Divisional offices of IOCL.
(b) IOCL for this specified purpose of fabrication has also supplied Steel Plates from its depots Free of Cost (FoC) and has obtained Bank Guarantee from the Applicant to cover the cost of these Steel Plates. The detailed list of components which are required by the applicant under the Contract for effecting the principal supply of fabricating 20 KL & 70 KL tanks in following Table. The items have been bought/ manufactured by the Applicant company and used as per the terms of the contract, in fabrication of tanks as per the specification mentioned in the Tender Documents of M/s IOCL:
