Advance Ruling— In the instant casse, the applicant has sought Advance Ruling on the following questions:
1. Whether the pallets, crates and containers (hereinafter referred as equipment”) leased by CHEP India Private Limited (CIPL) located and registered in Tamil Nadu to its other GST registrations located across India (say CIPL Kerala), would be considered as lease transaction and accordingly taxable as supply of services in terms of Section 7 of the Central Goods and Services Tax Act, 2017 (“CGST Act”) and Tamil Nadu Goods and Services Tax Act, 2017 (“TNGST Act”)?
2. If the answer to Question 1 is Yes, what is the value on which GST has to be charged i.e. whether it should be lease charges or the value of equipment in terms of Section 15 of the CGST Act and TNGST Act read with relevant Rules?
3. What are the documents that should accompany the movement of the goods from CIPL, Tamil Nadu to CIPL. Kerala?
4. Whether movement of equipment from CIPL, Kerala to CIPL, Karnataka on the instruction of CIPL, Tamil Nadu can be said to be mere movement of goods not amounting to a supply in terms of Section 7 of the CGST Act and TNGST Act, and thereby not liable to GST?
The proposed business model appears to be a mere plan which may or may not fructify with the assets at the disposal of the applicant for further supply. Hence the merger and consolidation of assets are merely planned and has not reached the stage with clear roadmap of how the proposal will take effect. Further they have stated that they are proposing to consolidate the assets in either of the three states namely, Karnataka or Maharashtra or Tamil Nadu. They are not clear about where the assets will be consolidated and supplies effected. Without knowing if assets will be consolidated in Tamil Nadu or not, facilitating the further supply of such assets, the questions on the value to be adopted for such supply, etc are premature and this authority is constrained to examine the issue without any substantiating legal documents.
Held that— The Questions 1, 2 & 4 raised by the applicant are not answered for want of substantiating documents. Q. No. 3 & 5, being procedural and not covered under Section 97(2) of the CGSAT/TNGST Act, 2017, are not admitted.