GST rate of 18% applicable on supply of coal handling and distribution charges
The Question and Ruling as follows :
1. Whether the Applicant is liable to discharge tax liability @ 18% on coal handling and distribution charges wherever the supply of such services is intended to be made expressly to a customer or will the Applicant be entitled to charge GST at the rate of 5% as applicable on supply of coal?
1. In respect of Question 1, we hold that coal handling and distribution charges will be taxable @18% and not 5% wherever the supply of such services only is intended to be expressly made to a customer.
2. In respect of Question No. 2, We have carefully considered the plea of the Applicant and in light of the referred provisions, we are of the opinion that input credit availed as per the conditions specified in section 16 shall be allowed for discharging the liability towards the supply of coal and supply of coal handling and distribution charges respectively.
You May Also Like:
- Design & Development services provided by Indian companies abroad is Export of service or OIDAR services?
- The proposed product is classifiable as “Glass-fibre Reinforced Gypsum Board” & can avail the benefit of concessional rate of tax
- HSN code applicable for the material ‘Heat Activated Ultra-Violet (HAUV) Polyester Film’ under GST
- GST at the rate of 18% is applicable on Alcohol-based Hand Sanitizers- Goa AAR