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Thursday, July 30, 2020

GST rate of 18% applicable on supply of coal handling and distribution charges

GST rate of 18% applicable on supply of coal handling and distribution charges

THE AUTHORITY OF ADVANCE RULING

The Question and Ruling as follows :

1. Whether the Applicant is liable to discharge tax liability @ 18% on coal handling and distribution charges wherever the supply of such services is intended to be made expressly to a customer or will the Applicant be entitled to charge GST at the rate of 5% as applicable on supply of coal?

2. Will the applicant be entitled to utilize the input tax credit availed for discharging liability towards the supply of coal and supply of coal handling and distribution charges?

RULING

1. In respect of Question 1, we hold that coal handling and distribution charges will be taxable @18% and not 5% wherever the supply of such services only is intended to be expressly made to a customer.

2. In respect of Question No. 2, We have carefully considered the plea of the Applicant and in light of the referred provisions, we are of the opinion that input credit availed as per the conditions specified in section 16 shall be allowed for discharging the liability towards the supply of coal and supply of coal handling and distribution charges respectively.

3. The ruling is valid subject to the provisions under section 103(2) until and unless declared void under section 104(1) of the GST Act.

Read Ruling

Tags: Judgement, GSTAdvance Ruling

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