Case Law Details
In Re IAC Electricals Pvt Ltd (GST AAR West Bengal)
Services of transportation, in-transit insurance and loading/unloading, being ancillary to the principal supply of goods, shall be treated to taxation under Section 8 (a) of the GST Act, and the consideration receivable on that account be taxed accordingly.
This Ruling is valid subject to the provisions under Section 103 until and unless declared void under Section 104(1) of the GST Act.
FULL TEXT OF AAR RULING IS AS FOLLOWS:
The Applicant is stated to be a manufacturer of Overhead Power Transmission Line Hardware and Accessories. His question is related to contracts obtained from M/s Power Grid Corporation of India (hereinafter referred to as “the Contractee”) who has entered into two separate contracts – one for supply of materials at ex-factory price (hereinafter referred to as “the First Contract”), and the other for supply of allied services like transportation, insurance, loading/unloading etc for delivery of materials at the contractee’s site (hereinafter referred to as “the Second Contract”). The Applicant states that as per the Second Contract, since they are not a Goods Transport Agency they arrange for the supply and delivery of materials through various other suppliers of these services. The Contractee is charged for these services at a pre-fixed rate, irrespective of the taxguru.in actual cost incurred. However, the Contractee is unwilling to bear the cost of GST on such services provided to them by the Applicant through various Service Suppliers. The Applicant, hence, wants a Ruling regarding the taxability of these services supplied by them.
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FOR URD PURCHASE OF GOODS, IS THIS UNDER REVERSE CHARGE AND WHAT TAX RATE WILL BE APPLICABLE