Case Law Details
In re Shri Nawodit Agarwal (GST AAR Chhattisgarh)
Do we need to charge GST on Freight amount excluding diesel cost or on total amount which is inclusive of diesel cost?
In the instant case as has been the contention of the applicant, the service recipient i.e. M/s. Shree Raipur Cement, C.G is providing diesel to the vehicles used by the applicant to transport cement/clinker in the course of business of cement by the cement company. Diesel so provided by the service recipient to the applicant for use in trucks/ vehicles of the applicant forms an important and integral component of this business process, without which the process of supply of cement can never get materialized.
Thus from the above legal provisions discussed above, it gets amply clear that any amount that the supplier is liable to pay in relation to such supply but which has been incurred by the recipient of the supply and not included in the price actually paid or payable for the goods or services or both is includible in value.
FULL TEXT OF ORDER OF AUTHORITY OF ADVANCE RULING, CHHATTISGARH
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sir, please explain that according to the above decision transporter liable to include cost of diesel in freight charges to pay gst on service, when cement company provide diesel free of cost to transporter against freight ,
then what is the liability on cement company against supply of diesel, because diesel purchased at concessional rate used in thier mining process having their own motor vehicle,
but when they hire vehicle for mining purpose then it is act as a supply of diesel to transporter.
please explain if their is liability to pay vat on this supply of diesel in mining process.