NO GST ON ASSET TRANSFER- RRVPNL CORRIGENDUM CLARIFIES TAX ON INFRASTRUCTURE COST ONLY

NO GST ON ASSET TRANSFER- RRVPNL CORRIGENDUM CLARIFIES TAX ON INFRASTRUCTURE COST ONLY

RAJASTHAN AUTHORITY FOR ADVANCE RULING

GOODS AND SERVICES TAX

Case Title- M/s Wonder Cement Limited

(GST AAR RAJASTHAN)

Advance Ruling No. RAJ/AAR/2019-20/22

Date of Judgment/Order- 10th October 2019

IMPORTANT PARAGRAPHS

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

• Whether there is any ‘Asset Transfer’ involved which is a leviable to GST in the work of shifting & raising of transmission lines owned by RRVPNL by M/S Wonder Cement Ltd.?
• Without prejudice to the submissions made above, if there is an ‘Asset transfer’ which is a Supply under GST, then who is liable to pay GST?
• If above GST is to be paid by the Applicant, then the same will be exempt vide Entry 4 of Notification no. 12/2017- Central Tax (rate) dated 28.06.2017?

Para No. 5 FINDINGS, ANALYSIS & CONCLUSION:

• The Superintending Engineer (T & C), RRVPNL, Chittorgarh, has issued a Corrigendum Letter No. RVPN/SE/T&C/COR/TECH/ F./D.973 dated 24.09.2019 in which the words “GST @ 18% applicable on asset transfer should be read as the words “GST @ 18% applicable on cost of Infrastructure for ‘Value of Supply’ “.
• After issue of the said corrigendum the question raised by the applicant turned redundant and therefore no advance ruling is required to be given.

RULING

Since the issue raised by the applicant is no more in existence after issuance of Corrigendum by RRVPNL, no advance ruling is given.