Advance ruling— The appellant has filed this appeal requesting advance ruling in respect of the following question:-

Whether diesel filled free of cost by the service recipient in the engaged chartered (dedicated) vehicles, would form part of value of supply of service charged by the Appellant and whether GST would be leviable on value of diesel filled free of cost by the service recipient or otherwise under GTA service?

Appellant is filling Appeal on the above question against the order of Authority for Advance ruling Chhattisgarh. Aggrieved by the rejection of the application for advance ruling, the appellant has filed this appeal.

Appellant has submitted that in the case at hand, the transaction is revenue neutral as the service recipient is eligible to claim input tax credit of GST charged on the GTA service. On the contrary the AAR in its order has contended that the present terms of the contract have been designed with intent to circumvent the provisions of GST law and to avoid incidence of tax. In my view AAR on this aspect is not correct because when input tax credit of GTA service is admissible to the service recipient, non-charging of GST will not lessen the revenue to the exchequer on end to end basis.

Held that— In view of this authority the value of diesel which is in the scope of service recipient would not be included in taxable value of supply of the service provider. The issue is not answered and it is deemed that no ruling is issued under Section 101(3) of the CGST Act because of the divergence of opinion between the two members.