For Full Access To All Latest Judgments on GST
Click Here To Subscribe Now
Take a tour of our GST Library

The amount paid by M/s Chhattisgarh state power generation co. ltd. to the Forest department of Chhattisgarh as “Abhivahan permission shulk” for obtaining permission for transit of coal from the Forest area, is liable for GST at the applicable rate and is not eligible to “Nil” rate of tax provided under sr. no. 4 and 5 of the Notification No 12/2017-Central (Rate), dated 28-6-2017, being not covered under the functions envisaged under article 243G and 243W of the Constitution of India. The said “Abhivahan permission shulk” paid by the applicant to the Forest department for the permission granted by the Forest department of Chhattisgarh, merits classification under the residuary Heading 9997 for other services with the tax rate of 18% and the applicant is liable for GST on the said “Abhivahan permission Shulk”, under reverse charge basis in terms of Serial No. 5 of the Notification No. 13/2017-Central Tax (Rate).

Levy of GST— In the instant case, the applicant seeking advance ruling on the applicability of GST Tax liability under the provisions or reverse charge mechanism, on the “Abhivahan Shulk” collected by the Government of Chhattisgarh.

The applicant seeks advance ruling on the following questions:-

i. Whether amount paid to the Forest department as Abhivahan permission shulk is liable to be taxed under GST or exempt as per the clause 4 and 5 of the Notification No 12/2017 being in the nature of pure service and same is used for specific purpose of “Urban forestry, protection of the environment and promotion of the ecological aspect” hence covered under the article 243G and 243W of the constitution being functions entrusted to the Municipality and Panchayat, Hence not liable to tax under GST?

ii. Whether as each transaction is separate transaction and Abhivahan Shulk charged is always less than Rs 5000/- per transactions and is not covered by the definition of continuous supply of service u/s 2(33) of the CGST Act 2017, hence exempt under sl.no No 9 of the Notification No 12/2017?

The applicant has opined that no GST is applicable upon them as each transaction is a separate transaction and Abhivahan Shulk charged is always less than Rs 5000/- per transactions and is not covered by the definition of continuous supply of service u/s 2(33) of the CGST Act 2017, hence exempt under sl. No 9 of the Notification No 12/2017

Held that— i. The amount paid by M/s Chhattisgarh state power generation co. ltd. Raipur, Chhattisgarh, the applicant to the Forest department of Chhattisgarh as “Abhivahan permission shulk” for obtaining permission for transit of coal from the Forest area, is liable for GST at the applicable rate and is not eligible to “Nil” rate of tax provided under sr. no. 4 and 5 of the Notification No 12/2017-Central (Rate), dated 28-6-2017, being not covered under the functions envisaged under article 243G and 243W of the Constitution of India.

ii. The applicant is also not eligible for “Nil” rate of tax on the said “Abhivahan permission shulk”, provided under sl. No. 9 of afore mentioned Notification No 12/2017-Central (Rate), dated 28-6-2017, for the reasons as delineated above.

iii. The said “Abhivahan permission shulk” paid by the applicant to the Forest department for the permission granted by the Forest department of Chhattisgarh, merits classification under the residuary Heading 9997 for other services with the tax rate of CGST@ 9% CGGST@ 9% and the applicant is liable for GST on the said “Abhivahan permission Shulk”, under reverse charge basis in terms of Serial No. 5 of the Notification No. 13/2017-Central Tax (Rate), dated 28-6-2017 (as amended).