Levy of GST— In the instant case, the applicant stated that they are registered under GST and are into the business of manufacture and supply of animal feeds, which are exempted goods under GST, for which they utilize the GTA / Security Services that are covered under Reverse Charge Mechanism (RCM).

The applicant has sought advance ruling in respect of the following question:-

Whether they are liable to pay GST under RCM for the services procured from the respective service providers being the manufacturer and supplier of exempted goods falling under HSN 23099020.

The applicant are the manufacturer and supplier of animal feeds, classifiable under HSN 2309 90 20, exempted from GST vide entry No. 102 of the Notification No.02/2017-Central Tax (Rate) dated 28.06.2017. They utilise the services of Goods Transport Agencies (GTA), to transport their products, and Security Services which are covered under Reverse Charge Mechanism (RCM) in terms of entry numbers 01 &14 respectively of the Notification 13/2017-Central Tax (Rate) dated 28.06.2017, as amended by Notification No.29/2018-Central Tax (Rate) dated 31.12.2018.

The applicant, admittedly is a registered person under GST Act and located in the taxable territory. They are the recipients of the services of the Goods Transport Agency and Security services, which are squarely covered under the category of supplies attracting GST liabilities on reverse charge basis.

Thus the recipient of service is liable to pay GST in respect of the services notified under Section 9(3) of the Act, ibid read with Notification 13/2017-Central Tax(Rate). It is pertinent to mention that GST is levied on the supply of service and liability is fastened independently for each of the supplies. Levy of tax or otherwise on a particular supply does not have a bearing on the taxability of other supplies received or provided by a taxpayer. Thus the exemption provided to the outward supplies of the applicant does not have a bearing on the GST liabilities under reverse charge basis on the supplies received by the applicant.

Held that— The applicant is liable to pay GST under RCM, for the services notified and covered under RCM, received from the service providers, in spite of being a manufacturer and supplier of exempted goods falling under HSN 2309 90 20.