The Royalty paid or payable by the applicant to Nagpur Municipal Corporation (NMC) for supplying “Tertiary Treated Water” to Mahagenco, by treating the Sewage Water supplied by NMC is liable to tax under the GST. The taxes are to be paid by the applicant under reverse charge basis (RCM).
Authority for Advance Ruling – GST on Royalty paid or payable to Nagpur Municipal Corporation – The applicant is involved in making crumb, rubber/granules from used tyres. The applicant submitted that even if the crumb rubber/granules is manufactured from waste /used tyres, it is a finished product and not a waste. The applicant sought an Advance Ruling as to whether the Royalty paid or payable by the applicant to Nagpur Municipal Corporation (NMC) for supplying “Tertiary Treated Water” to Mahagenco, by treating the Sewage Water supplied by NMC is liable to tax under the GST Law; if yes, whether the tax is to be paid by NMC under forward charge or same is to be paid by the applicant under reverse charge; if tax is to be paid, then whether the applicant would be entitled for Input Tax Credit.
Held that:- The Hon’ble Authority for Advance Ruling held that Royalty paid or payable by the applicant to Nagpur Municipal Corporation (NMC) for purchase of license or right of supplying Tertiary Treated Water” to Mahagenco, by treating the Sewage Water supplied by NMC is liable to tax under the GST Act. The taxes are to be paid by the applicant under reverse charge basis (RCM). NMC is not liable to pay taxes on the subject transaction as discussed in present order. ITC would be available to the applicant subject to fulfillment of the conditions mentioned under sections 16 to 21 of the ACT, 2017.
The Royalty paid or payable by the applicant to Nagpur Municipal Corporation (NMC) for supplying “Tertiary Treated Water” to Mahagenco, by treating the Sewage Water supplied by NMC is liable to tax under the GST. The taxes are to be paid by the applicant under reverse charge basis (RCM).
Authority for Advance Ruling – GST on Royalty paid or payable to Nagpur Municipal Corporation – The applicant is involved in making crumb, rubber/granules from used tyres. The applicant submitted that even if the crumb rubber/granules is manufactured from waste /used tyres, it is a finished product and not a waste. The applicant sought an Advance Ruling as to whether the Royalty paid or payable by the applicant to Nagpur Municipal Corporation (NMC) for supplying “Tertiary Treated Water” to Mahagenco, by treating the Sewage Water supplied by NMC is liable to tax under the GST Law; if yes, whether the tax is to be paid by NMC under forward charge or same is to be paid by the applicant under reverse charge; if tax is to be paid, then whether the applicant would be entitled for Input Tax Credit.
Held that:- The Hon’ble Authority for Advance Ruling held that Royalty paid or payable by the applicant to Nagpur Municipal Corporation (NMC) for purchase of license or right of supplying Tertiary Treated Water” to Mahagenco, by treating the Sewage Water supplied by NMC is liable to tax under the GST Act. The taxes are to be paid by the applicant under reverse charge basis (RCM). NMC is not liable to pay taxes on the subject transaction as discussed in present order. ITC would be available to the applicant subject to fulfillment of the conditions mentioned under sections 16 to 21 of the ACT, 2017.