1 / 5

Supervisory Charges are liable to GST (1)

We are full service firm focuses in domain of Business Setup in India, FEMA, Expatriates Taxation, Accounting Outsource, International Taxation, Auditing, Transaction advisory and so on.<br><br>Underpinned by our values and with our global presence, we serve on FDI advisory, cross-border accounting, International tax planning and Management consulting needs of our overseas clients all over the world.<br>

vjmglobal
Download Presentation

Supervisory Charges are liable to GST (1)

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Supervisory Charges are liable to GST| H & T Contractor charges collected on actual basis is not liable to GST

  2. 1. Brief facts of the case:  • M/s Karnataka State Warehousing Corporation (KSWC) (“The Applicant”) is registered under GST in the state of Karnataka. The applicant is a state government undertaking owned by Central Warehousing Corporation and Government of Karnataka in equal proportion. • Among various other services, The applicant is also engaged in providing services of handling & transport, loading & unloading of agricultural produce. • The Handling and transport work includes handling of stock at the railhead, transportation to the warehouses, unloading and proper stacking inside the godowns, re-bagging, salvaging, standardization as may be necessary and de-stacking and loading the same at the time of delivery. • For the purpose of providing such service, the applicant in turn obtains services Handling & Transport (H&T) contractors.

  3. Legal Extract: • Notification No. 12/2017-Central Tax (Rate) dated 28th June, 2017 contains list of services exempted from GST. Entry No. 24(1)(e) is reiterated below: • “… • “ • Storage and Warehousing service as explained by CBEC in F.No.B11/1/2002-TRU, dated 01-08-20002, is as follows: • “Storage and Warehousing Service for all kinds of goods are provided by public warehouses, private warehouses, by agencies such as the Central WareHousing Corporation, Airport Authorities, Railways, Inland Container Depots, Container Freight Stations, storage godown and tankers operated by private individuals etc.”

  4. Contention of the Applicant • As per Notification No. 12/2017-Central Tax (Rate) under Entry No. 24 or SAC 9986, exemption is available only with respect to loading, unloading, packing, storage or warehousing of agricultural produce and not in respect of supervisory charges. • Further, the supervisory charges are not covered in definition of “storage and warehousing services” given under explanation in CBEC in F.No. B11/1/2002-TRU, dated 01-08-2020.  • Therefore, Supervisory charges are covered under Entry No.  998619 “Other support services to agriculture, hunting, forestry and fishing” or under the SAC 996799 “Other supporting transport services n.e.c” or under the SAC 999799 “Other services n.e.c” and therefore, such charges would be liable to GST @9% CGST and 9% KGST or 18% IGST

More Related