No GST Applicable on Supply made by Fair Price Shop to State Government: AAR

The applicant is an entity engaged inter-alia in the business as holder of license issued by the Government of West Bengal, authorising him to carry on trade in Super Kerosine Oil, hereinafter also referred to as SK Oil, as a “Dealer” as defined under the Notification No. 2565/FS/FS/Sectt/Sup/4M-16/2014 dated 3rd November 2014 which is issued by the Department of Food and Supplies, Government of West Bengal.

The applicant has made this application under sub section (1) of section 97 of the GST Act and the rules made there under raising following questions vide serial number 14 of the application in FORM GST ARA-01 : i. Whether the applicant being a Fair Price Shop as defined under the 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”?

Advance Ruling

Question: Whether the applicant being a Fair Price Shop as defined under the 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?

Answer: The applicant is not making any supply to the State Government. No tax is, therefore, to be charged to the State Government.

Question: Whether the other charges like Dealer‟s commission, Dealer‟s Transport Charges, Stationery Charges, H & E Loss etc. would be chargeable to GST or treated as exempt? Answer: GST would be applicable on these charges.

For Official Ruling Download PDF Given Below: