In re Chanchal Saha (GST AAR West Bengal)
The AAR, West Bengal, in the matter of M/s. Chanchal Saha [Advance Ruling No.09/WBAAR/2023-24 dated June 26, 2023] ruled that the assessee is supplying goods to ration card holder and not to State government and since, the recipient is ration card holder and not the state government thus, no tax will be charged from the State government.
Facts:
M/s. Chanchal Saha (“the Applicant”) is a licensed dealer under Public Distribution System (“PDS”) of West Bengal government and runs a fair price shop which is authorized for distribution of essential commodities viz. sugar, kerosene etc. to the ration card holders. The Applicant submitted that it procures essential commodities from government decided agents.
The Applicant further submits that the purchase and selling price of the Applicant is fixed by Government and the difference between them is the dealer’s commission, transportation charges and stationary charges etc.
Moreover, the Applicant submitted that the consideration received by the Applicant is solely from the ration card holder other than that there is no other consideration flows towards the sale of essential goods.
The Applicant filed application for advance ruling seeking whether the commission received from state government is liable to GST.
Issue:
Whether the Applicant being a fair price shop is liable to charge GST from the state government against the supply made to them?
Held:
The AAR, West Bengal, in Advance Ruling No.09/WBAAR/2023-24 held as under:
