Case Law Details
In re Karnataka State Warehousing Corporation (GST AAR Karnataka)
Whether ‘supervisory charges’ under clause 28(b) of the Office order on charges of KSWC charged to Food Corporation of India (FCI) by the Corporation towards supervision of loading, transportation and unloading of agricultural produce like Rice, wheat etc., at the rate of 8% on the amount billed by ‘Handling and Transportation’ Contractors is chargeable to tax under the CGST/KSGST Acts, 2017, If yes, at what is the applicable rate of tax and the HSN/SAC Code applicable thereto?
The services of the applicant to supervise the handling & transportation of “agriculture produce” belonging to the FCI, from railhead to the warehousing station provided by the H&T contractors, are covered under SAC 9997 being the services nowhere else classified and are exigible to GST @ 18% in terms of Sl.No.35 of the Notification No. 11/2017-Central Tax (Rate) dated 28.06.2017, on the value equivalent to 8% of the sum of actual amounts paid to H&T contractors, in terms of Section 15 of the CGST Act, 2017.
FULL TEXT OF THE ORDER OF AUTHORITY OF ADVANCE RULING,KARNATAKA
M/s Karnataka State Warehousing Corporation (KSWC), (called as the ‘Applicant’ hereinafter) Beeja Bhavana, 4th & 5th Floor, Bellary Road, Hebbala, Bengaluru Urban-560024 having GSTIN number-29AAACK8505HlZG, have filed an application for Advance Ruling under Section 97 of CGST Act, 2017 read with Rule 104 of the CGST Rules, 2017 and under Section 97 of the KGST Act, 2017 read with Rule 104 of KGST Rules 2017 in FORM GST ARA-01 discharging the fee of Rs.5,000/- each under the CGST Act and the KGST Act.
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