Case Law Details
In re Radiant Corporation Private Limited (GST AAR Telangana)
In the present case, the applicant has submitted certain utilization certificates from the Naval authorities. The certificates categorically state that the goods supplied are used ‘as stores for consumption onboard of Indian Navy Ship’ (Certificate dated: 29.08.2016 & 08.11.2016). Similarly, in the certificate dated: 24.02.2017 it is stated that they are exclusively for use onboard Indian Naval Ships. In the certificate dated: 30.03.2017 it is stated that these goods are required for ATV program.
When the above (2) evidences are read in tandem, it is clear that the appellant is supplying special types of cables to the Naval authorities.
Therefore the supplies made by the applicant to Defence Machinery Design Establishment (DMD) for the purpose of use in warship building of Indian Navy will qualify for the concessional rate of tax of 5% under CGST & SGST.
What is the applicable rate of CGST on the supply of pressure tight cables, non-pressure tight cables and special cables for use in S4 submarine supplied by the Applicant to DMDE, Ministry of Defense, Govt of India.
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Dear Sir, I did not go through the article in full but understood the problem of fixing the rate of Tax… What could have been the effect if the law makers keep the general tax rate.. who would be the gainer or who would have been the looser? After all the recipient is Govt. of India. If tax was collected by the supplier in general rate and deposited to the govt. what would have been bad to the nation? Nothing …only the system of taxation was easy which we do not want to make. We can not come out from our old concept simply. Why do not we think about the supplier.. due to lower tax rate he may have to apply for refund and there are the reasons behind it… None will speak… every one knows the situation bu no body will speak out.. who will tell the king that he does not wear the minimal clothing which should have been…
Thanks & Regards
really sir it’s a very helpful & knowledgeable article. pls also write on if A contractor provides services of road construction to govt. department with scn-995421