No GST is leviable as on date on the said “marg sudharan shulk” charged and collected by the applicant.
Applicant is liable to pay GST @ 18% on the said “Abhivahan Shulk” under Service Code 9997 and to be treated as “other services”.
AUTHORITY FOR ADVANCE RULINGS, UTTARAKHAND
Divisional Forest Officer In re
RULING NO. 01 OF 2018-19
AND APPLICATION NO. 05/20.2.2018
APRIL 20, 2018
1. This is an application under Sub-Section (1) of Section 97 of the CGST Act and the rules made thereunder filed by Regional Forest Officer (Forest Division Dehradun) seeking an advance ruling on the question whether GST is leviable on the “Marg Sudharan Shulk” and “Abhivahan Shulk” charged by Forest Division Dehradun from the non government, private and commercial vehicles engaged in mining work in lieu of use of forest road. The said mining is being undertaken at “Saung” and “Jakhan Rivers” falling under the jurisdiction of Forest Division Dehradun under the supervision of “Van Vikas Nigam” after getting necessary approval from Environment Ministry, Government of India.
2. Advance Ruling under GST means a decision provided by the authority or the appellate authority to an applicant on matters or on questions specified in sub section (2) of section 97 or sub section (1) of section 100 in relation to the supply of goods or services or both being undertaken or proposed to be undertaken bythe applicant.
3. As per Section 97(2)(e) of CGST/SGST Act, 2017 the advance ruling can be given on “determination of the liability to pay tax on any goods or services or both. In the present case applicant has sough advance ruling in respect of leviability of GST, if any, on the said “Marg Sudharan Shulk” and “Abhivahan Shulk” charged by them. Therefore, in terms of said Section 97(2)(e) of CGST/SGST Act, 2017, the present application is hereby admitted.
4. Accordingly opportunity of personal hearing was granted to the applicant on 02.04.2018. Shri B.B. Martoliya, Sub-divisional forest officer, Dehradun appeared for personal hearing on 02-04-2018 and submitted documents describing therein exact nature of work being undertaken. No body appeared from the side of Revenue for the hearing.
5. In the present application, applicant has requested for advance ruling on leviability of GST on (i) “Marg Sudharan Shulk” and (ii) “Abhivahan Shulk” which are discussed as under :
6.1 GST on “Marg Sudharan Shulk” : From the documents submitted by the applicant we find that the said “marg sudharan shulk” is charged and collected by applicant from non government, private and commercial vehicles engaged in mining work in lieu of use of forest road. Stated purpose of said “marg sudharan shulk” is for maintenance of forest road. Under GST, “the services by way of assess to a road or a bridge on payment of toll charges” are included in the list of exempted services. Further, A toll road, also known as a turnpike or tollway, is a public or private road for which a fee (or toll) is Assessed for passage. It is a form of road pricing typically implemented to help recoup the cost of road construction and maintenance. In the present case we find that the said “marg sudharan shulk” is nothing but toll charges collected by the applicant from the users for using forest road and the said toll charges are being used for the maintenance of forest road. Therefore we conclude that no GST is leviable as on date on the said “marg sudharan shulk” charged and collected by the applicant.
6.2 GST on “Abhivahan Shulk” : From the documents submitted by the applicant we find that the said “”Abhivahan Shulk”” is charged and collected by applicant in respect of forest produce carried out by a person. On going through “The Uttrakhand Transit of Timber and Other Forest Produce Rules 2012” , authority observe that a person who desires to obtain forest produce is required to be registered with the forest department after paying applicable fee and the said “”Abhivahan Shulk”” is charged on the basis of quantum and quality of forest produce and the said forest produce must be accompanied with a transit pass issued by forest authorities in this regard. Authority further observe that charges for carrying forest produce through road or water are different and determined according to quality and quantity. Therefore said “”Abhivahan Shulk”” can not be termed as toll tax and rather is a form of consideration received by the applicant in lieu of services provided to the person for carrying forest produce. Under GST regime under Section 2(102) services means anything other than goods ……………… and all services but for list of exempted services as provided under Chapter 99 of GST Tariff, 2017 are liable for GST. Since the services provided by the applicant do not find mention in the list of exempted services, therefore the applicant is liable to pay GST @ 18% on the said “Abhivahan Shulk” under Service Code 9997 and to be treated as “other services”.
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