Page 174 - GSTL_14th May 2020_Vol 36_Part 2

276 GST LAW TIMES [ Vol. 36
tion/erection of Bays/Sub-Stations, Overhead lines and
Underground Cables and other charges including Pro rata
charges, supervision charges, proportionate line charges,
registration fees and operation and maintenance charges,
recovered by GETCO from the consumers, do not form part
of the value of supply of service of “Transmission of Elec-
tricity” under Section 15 of the Central Goods and Services
Tax Act, 2017.
14. GETCO is liable to pay GST @ 18% (CGST @ 9% and SGST @ 9%) on
amount recovered towards cost of the construction, erection, commissioning, or
installation of infrastructure for extending electricity distribution network up to
the premises of the consumers along with supervision charges under the service
category of “Construction Services” (HSN Code - 9954/995423).
15. Further, GETCO is also liable to pay GST @ 18% (CGST @ 9% and
SGST @ 9%) on recovery of other charges viz. Pro rata charges, Proportionate line
charges, Registration fees and Operation and maintenance charges etc. under the
residual category of services i.e. “9997 99 - Other services n.e.c.”.

_______

2020 (36) G.S.T.L. 276 (A.A.R. - GST - Kar.)
BEFORE THE AUTHORITY FOR ADVANCE RULING UNDER GST,
KARNATAKA
Dr. M.P. Ravi Prasad, Member (State Tax) and Shri Mashhood Ur Rehman
Farooqui, Member (Central Tax)
IN RE : NEW SPACE INDIA LTD.
Advance Ruling No. KAR ADRG 19/2020, dated 31-3-2020
Leasing of transponders - Rate of GST - Service of Leasing of Satellite
Transponders, covered under SAC 997319, falls under Entry No. 17(viii) of No-
tification No. 8/2017-I.T. (Rate), as amended, and taxable @ 5% IGST (i.e., 2.5%
CGST and 2.5% KGST), as applicable on the supply of like goods (transponder
- part of communication satellite) involving the transfer of title in goods, cov-
ered under Tariff Item 8803 90 00 of Customs Tariff Act, 1975, in terms of Entry
No. 245 of the Schedule-I to Notification No. 1/2017-I.T. (Rate), as amended -
However, applicant cannot levy GST @ 5% from the date of commencement of
the said service already provided, if GST already charged and collected under
any invoice - Any excess collection of tax needs to be paid to the Government
within the specified time and mistake shall only be corrected through a debit
note-credit note mechanism, if applicable and subject to such conditions and
within such time as specified in Section 34 of Central Goods and Services Tax
Act, 2017. [paras 6.22, 6.23, 7]
Transponders - Parts of communication satellite - Essential/Significant
features of amplification and frequency conversion are done by the key pay-
load of the communication satellite, i.e., the transponder, therefore, ‘tran-
sponders’ becomes an integral part of communication satellite, without which
the communication satellite becomes defunct - Transponder cannot form part
GST LAW TIMES  14th May 2020  174