Diesel excluded from levy of GST hence beyond the scope of Advance Ruling: AAR

M/s. The Singareni Collieries Company Limited, Head Office, Kothagudem Collieries, Kothagudem, Badradri, Telangana, 5071014 (36AAACT8873F1Z1) has filed an application in FORM GST ARA-01 under Section 97(1) of TGST Act, 2017 read with Rule 104 of CGST/TGST Rules.

M/s. Singareni Collieries Company Limited is entering into contracts with a host of vendors/suppliers for extraction of coal. In the process, they are procuring diesel and supplying the same to their contractors free of cost. They are desirous of ascertaining their liability under GST when such diesel is supplied free of cost. Hence this application.

The commodity ‘Diesel’ is covered under Entry 54 to the List II of the Schedule VII to the Constitution of India and therefore it is excluded from levy of GST and hence beyond the scope of Chapter XVII of the CGST Act, 2017.

Hence the application for Advance Ruling is rejected.