GST not Applicable on Kerosene Oil sold by Fair Price Shop to Ration-Card Holders: AAAR

The West Bengal Appellate Authority for Advance Ruling (AAAR West Bengal) in the matter of Chanchal Saha has ruled out that GST is not Applicable on Kerosene Oil sold by Fair Price Shop to Ration Card Holders.

The appellant is an entity engaged inter-alia in the trade of super Kerosine Oil, hereinafter also referred to as SK Oil, as a holder of a license issued by the Government of West Bengal, authorizing him as a “Dealer” as defined under Kerosene Control Order, 1968.

The Questions and Ruling are as follows:

The Appellant sought an advance ruling under section 97 of the West Bengal Goods and Services Tax Act, 2017 and the Central Goods and Services Tax Act, 201 7, (hereinafter collectively referred to as “the GST Act“) on the following questions:

(i) Whether the applicant being a Fair Price Shop as defined under Notification No. 2565/FS/FS/Sectt/Sup/4M-16/2014 dated 3rd November 2014 issued by the Government of West Bengal, is liable to charge GST from the State Government against the supply made by them?

(ii) Whether the other charges like Dealer’s commission, Dealers Transport Charges, Stationery Charges, H & E Loss etc. would be chargeable to GST or treated as exempt?

(iii) Whether the supply of “S.K.Oil” along with charges would be treated as a composite supply wherein the principal supply would be the supply of “S.K. Oil”?

RULING

(i) The appellant in the present case, is a Fair Price Shop and is providing service to the State Government by way of distributing of S. K. Oil as an agent, it decided that the aforementioned notification is applicable for the appellant and the appellant is entitled for the benefit extended by the said notification. Since, in terms of the said Notification, the Tax liability of the appellant while providing service to the State Government is ‘NIL’ the question of charging GST from the State Government becomes inapplicable.

(ii) This query becomes redundant in terms of the discussion made in Para – 10.15.

(iii) Supply of “S.K.Oil’ along with charges shall not be treated as a composite supply. The supply made by the appellant in the instant case is a Supply of Service to the State Government.

For Official Ruling Download PDF Given Below: