In re Vision Plus Security Control Limited (GST AAR Chhattisgarh)
In Authority for Advance Ruling, Chhattisgarh, the applicant sought an advance ruling on the tax treatment of petrol and diesel charges recovered from clients under proposed fleet operation contracts. The applicant proposed to provide fleet management–related services such as vehicle repair and maintenance, driver services, insurance, and fuel, with petrol and diesel charges invoiced separately on a per-kilometre basis. The fuel would be purchased and owned by the applicant and billed to clients distinctly from other service charges.
The questions raised concerned whether such fuel charges would constitute a supply of goods liable to VAT or GST, whether they could be treated as part of a composite supply of services, the applicable classification and rate if GST applied, the possibility of dual levy of GST and VAT, and eligibility to claim input tax credit of VAT paid on fuel.
The Authority examined the scope of advance ruling under sections 96, 97, and 103 of the CGST Act, 2017, and admitted the application as it related to classification, tax liability, and admissibility of input tax credit. It noted that GST is levied on supplies of goods or services unless excluded. Petrol and diesel fall within petroleum products, which, although constitutionally included under GST, continue to remain outside the GST levy until a date is notified on the recommendation of the GST Council under Article 279A(5) of the Constitution and section 9(2) of the CGST Act.
