LIABILITY TO PAY GST UNDER REVERSE CHARGE MECHANISM ON FREIGHT PAID FOR TRANSPORTATION OF COTTON SEED OIL CAKE

LIABILITY TO PAY GST UNDER REVERSE CHARGE MECHANISM ON FREIGHT PAID FOR TRANSPORTATION OF COTTON SEED OIL CAKE

RAJASTHAN AUTHORITY FOR ADVANCE RULING

GOODS AND SERVICES TAX

Case Title- Sanjay Kumar Jain

(GST AAR RAJASTHAN)

Advance Ruling No. RAJ/AAR/2019-20/13

Date of Judgment/Order- 2nd July 2019

IMPORTANT PARAGRAPHS

Para No. 2 QUESTIONS ON WHICH THE ADVANCE RULING IS SOUGHT:

Whether the applicant is liable to pay tax on the basis of reverse charge mechanism on the freight paid by the applicant on transportation of cotton seed oil cake having HSN code 2306?

Para No. 4 COMMENTS OF THE JURISDICTIONAL OFFICER

The jurisdiction officer (Assistant Commissioner, CGST DivisionC, CGST Jodhpur Commissionerate, Jodhpur) has submitted his comments vide letter dated 27.05.2019 and stated that, services of GTA in relation to transportation of goods are falling under Chapter Heading No. 9967 and attracting GST rate 5%. Further, no exemption has been granted on transportation of Cotton Seed cake under Notification No. 12/2017 dated 28.06.2017. Therefore, in view of the above it is submitted that the taxpayer is liable to pay tax on transportation of Cotton Seed Cake.

RULING

The applicant is liable to pay GST under Reverse Charge Mechanism being recipient of GTA services.