In re Singareni Collieries Company Limited (GST AAAR Telangana)
Q1. Whether the Statutory payment made to forest department as per Rule (3) of State forest produce transit rules, can be treated as supply?
A1. Yes, it is treated as a supply of services and GST is payable on forest permit fee on Reverse Charge Mechanism (RCM) basis.
Q2. Alternatively, if GST is payable on forest permit fee paid by the Applicant, can services received by the Applicant be classifiable under heading 9973 of Notification No. 11/2017 Central Tax (Rate) dated 28th June, 2017and thus be exigible to a lower rate of tax for the period prior to 01-01-2019?
A2. No, The supply is to be classified as Public Administrative Services falling under Entry 29 of Notification No. 11/2017 Central Tax (Rate) dated 28th June, 2017 which is taxable @ 18%, for the entire period.
FULL TEXT OF THE ORDER OF AUTHORITY FOR APPELLATE ADVANCE RULING, TELANGANA
1. In terms of Section 102 of the Telangana Goods and Services Tax Act, 2017 (TGST Act, 2017 or the Act), this Order may be amended by the Appellate authority so as to rectify any error apparent on the face of the record, if such error is noticed by the Appellate authority on its own accord, or is brought to its notice by the concerned officer, the jurisdictional officer or the applicant within a period of six months from the date of the order. Provided that no rectification which has the effect of enhancing the tax liability or reducing the amount of admissible input tax credit shall be made, unless the applicant or the appellant has been given an opportunity of being heard.
2. Under Section 103 (1) of the Act, this advance ruling pronounced by the Appellate Authority under Chapter XVII of the Act shall be binding only,-
(a) On the applicant who had sought it in respect of any matter referred to in sub-Section (2) of Section 97 for advance ruling;
(b) On the concerned officer or the jurisdictional officer in respect of the applicant.
3. Under Section 103 (2) of the Act, this advance ruling shall be binding unless the law, facts or circumstances supporting the original advance ruling have changed.
4. Under Section 104 (1) of the Act, where the Appellate Authority finds that advance ruling pronounced by it under sub-Section (1) of Section 101 has been obtained by the appellant by fraud or suppression of material facts or misrepresentation of facts, it may, by order, declare such ruling to be void ab-initio and thereupon all the provisions of this Act or the rules made thereunder shall apply to the appellant as if such advance ruling has never been made.
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Sub:- GST – Appeal filed by M/s The Singareni Collieries Company Limited, Kothagudem, Bhadradri Kothagudem, Telangana – 507 101,under Section 100 (1) of TGST Act, 2017 against Advance Ruling TSAAR orders No. 30/2022, dt.07.06.2022 passed by the Telangana State Authority for Advance Ruling – Order-in-Appeal passed – Regarding.
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The applicant, M/s Singareni Colleries Company Ltd, Head office, Kothagudem Collieries, Kothagudem, Badradri, Telangana 507 101 (GST NO. 36AAACT8873FIZI) (hereinafter referred to as M/s Singareni or the applicant) are mainly into extraction of coal. The applicant is a government owned coal mining company. The company is jointly owned by the Government of Telangana and Government of India. They operate mines in the state of Telangana. They have coal mining projects in various places. M/s. Singareni Collieries Company Limited is entering into contracts with a host of vendors/suppliers for extraction of coal. Under rule (3) of State Forest produce transit rules they are liable to pay a certain amount to move the mined coal through the forest area as permit fee at the rate of Rs. 10 per ton of coal transported. The applicant is desirous of ascertaining whether GST is attracted on reverse charge on this amount paid to the Forest department.
2. The applicant filed an appeal before the lower authority seeking advance ruling on the following questions.-
(1) Whether, in the facts and circumstances of the case, the Applicant is obliged to pay GST on the forest permit fee paid by it under reverse charge mechanism?
(2) Alternatively, if GST is payable on forest permit fee paid by the Applicant, can services received by the Applicant be classifiable under heading 9973 of Notification No. 11/2017 Central Tax (Rate) dated 28th June, 2017 and thus be exigible to a lower rate of tax for the period prior to 01-01-2019?
BRIEF FACTS:
3. After due Process of Law, the lower authority, vide its orders No. 30/2022, dt.07.06.2022, has given ruling as under:
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