In re Navbharat LPG Bottling Company (GST AAR Gujarat)
a. Determination of the liability to pay GST on sales of LPG Gas sold in Bottle to Commercial Customer and LPG Gas sold in Bottle to Domestic Customer.
The applicant would be liable to pay 18% GST (9% SGST + 9% CGST) on the LPG sold by them to their Commercial Customers. They would be liable to pay 18%(9% SGST + 9% CGST) on the LPG sold to their Domestic Customers for the period upto 24.01.2018 and 5% (2.5% SGST + 2.5% CGST) on the LPG sold to their Domestic Customers with effect from 25.01.2018 onwards.
b. Entire I.T.C. @ 18% eligible on Purchases of LPG Gas (bulk) through Tanker?
The applicant is eligible to take the entire input cenvat credit @ 18% on purchases of LPG Gas in bulk through Tanker subject to the fulfilment of the conditions/provisions (wherever applicable) for taking input tax credit as envisaged in Sections-16, 17 and 18 of the CGST Act, 2017 and Rules-36, 37, 40, 41 and 42 of the CGST Rules, 2017.
FULL TEXT OF ORDER OF BEFORE THE AUTHORITY OF ADVANCE RULING, GUJARAT
The applicant vide their application for Advance Ruling has submitted that they are engaged in the business of purchasing LPG Gas (Bulk) through Tanker and thereafter, refilling the same in two types of bottles- 17 kgs. and 21 kgs. and sell it to Commercial Customer on Rate of GST Applicable @ 18%. Secondly, they are refilling the gas in bottles of 12 kgs. and 15 kgs. also and selling it to Domestic Customers, on which GST rate applicable is @5%.
2. The applicant have further stated that in the above circumstances, by considering Section-97 (2), they have made the following question on which Advance Ruling is required:-
(1) Determination of the liability to pay Tax on sales of Gas sold in Bottle to Commercial Customer and Gas sold in Bottle to Domestic Customer.
(2) Entire I.T.C. @ 18% eligible on Purchases of LPG Gas (bulk) through Tanker?
3. The applicant have enclosed copies of Purchase invoice and Sales invoice for ready reference and have requested to grant them a personal hearing in the matter and after considering the above facts, to pass a Determination Order or Advance Ruling as per provisions of the Act.
DISCUSSION & FINDINGS
4. We have considered the submissions made by the applicant in their application for advance ruling as well as the arguments/discussions made by them at the time of personal hearing. As per their submission, the applicant are engaged in the business of purchasing LPG Gas (Bulk) through Tanker and thereafter, refilling the same in two types of bottles- 17 kgs. and 21 kgs. and sell it to Commercial Customer on Rate of GST Applicable @ 18%. Secondly, they are refilling the gas in bottles of 12 kgs. and 15 kgs. also and selling it to Domestic Customers, on which GST rate applicable is @5%. The applicant have submitted a copy of Purchase Invoice issued to them by M/s. Aegis Gas (LPG) private limited, Tranja village, Post-Limbasa, Tal: Matar, District-Kheda through which they have received 11.970 tonnes of Commercial LPG Mixture (Gas) from the said company in bulk which would be refilled in smaller bottles as mentioned above and sold at the applicable rates as mentioned above.
5. The applicant has put the following question for advance ruling in their application:-
(1) Determination of the liability to pay Tax on sales of Gas sold in Bottle to Commercial Customer and Gas sold in Bottle to Domestic Customer.
(2) Entire I.T.C. @ 18% eligible on Purchases of LPG Gas (bulk) through Tanker?
6. In order to determine the tax liability on the sale of Gas sold in bottles by the applicant and sold to the Commercial and Domestic customers, we will be required to refer to the Notification No.01/2017-Central Tax (Rate) dated 28.06.2017 containing the sub-headings as well as the rates of GST applicable to various goods. Relevant portion of Notification No:01/2017-Central Tax (Rate) dated 28.06.2017 is reproduced hereunder:
GOVERNMENT OF INDIA
MINISTRY OF FINANCE
(Department of Revenue)
Notification No.1/2017-Central Tax (Rate)
New Delhi, the 28th June, 2017.
G.S.R. (E).- In exercise of the powers conferred by sub-section (1) of section 9 of the Central Goods and Services Tax Act, 2017 (12 of 2017), the Central Government, on the recommendations of the Council, hereby notifies the rate of the central tax of-
(i) 2.5 per cent. in respect of goods specified in Schedule I,
(ii) 6 per cent. in respect of goods specified in Schedule II,
(iii) 9 per cent. in respect of goods specified in Schedule III,
(iv) 14 per cent. in respect of goods specified in Schedule IV,
(v) 1.5 per cent. in respect of goods specified in Schedule V, and
(vi) 0.125 per cent. in respect of goods specified in Schedule VI
appended to this notification (hereinafter referred to as the said Schedules), that shall be levied on intra-State supplies of goods, the description of which is specified in the corresponding entry in column (3) of the said Schedules, falling under the tariff item, subheading, heading or Chapter, as the case may be, as specified in the corresponding entry in column (2) of the said Schedules
Schedule I – 2.5%
