Page 104 - GSTL_23rd July 2020_Vol 38_Part 4

470 GST LAW TIMES [ Vol. 38
Schedule I - 2.5%

S. Chapter/ Description of Goods
No. Heading/
Sub-heading/
Tariff item
165. 2711 12 00, Liquefied Propane and Butane mixture, Liquefied
2711 13 00, Propane, Liquefied Butane and Liquefied Petroleum
2711 19 00 Gases (LPG) for supply to household domestic con-
sumers or non-domestic exempted category (NDEC)
customers by the Indian Oil Corporation Limited,
Hindustan petroleum Corporation Limited or Bharat
Petroleum Corporation Ltd.

As per the GST tariff (based on Schedule-I of Customs Tariff Act, 1975) Liquified
Petroleum Gas (LPG) is classified under Chapter 27 and sub-heading 2711 19 00.
The said item appears at Sr. No. 165 of Schedule-I of Notification No. 1/2017-
Central Tax (Rates), dated 28-6-2017 wherein the GST rate is 5% (2.5% SGST +
2.5% CGST) which is available only in cases where LPG is supplied to Non-
Domestic Exempted Category (NDEC) customers by the Indian oil Corporation
Ltd., Hindustan Petroleum Corporation Ltd. or Bharat Petroleum Corporation
Ltd. Consumers under NDEC include hospitals, hostels, supplies for mid-day
meal schemes, government office canteens, messes of police, BSF, CISF besides
that of defence establishments, the canteens run on cooperative basis, laborato-
ries attached to schools, colleges and research institutes and charitable institutes.
As per the purchase invoice given by the applicant along with their submission
as well as the arguments/discussions made by their representative during the
course of personal hearing held on 19-3-2020, it is seen that the applicant is pur-
chasing the gas in bulk only from M/s. Aegis GAS (LPG) Private Limited (which
is a non-government company and a private unlisted company) and selling it by
refilling it in cylinders to their commercial/domestic customers. However, since it
is apparent from their submission that they are not providing LPG to NDEC customers,
the same need not be discussed. Further, the above tariff sub-heading does not cover
the LPG purchased from companies other than Indian Oil Corporation Ltd.,
Hindustan Petroleum Corporation Ltd. or Bharat Petroleum Corporation Ltd.
and supplied to commercial/domestic customers. Hence, the LPG gas received
from companies other than the 3 mentioned above and supplied to Commer-
cial/Domestic customers in cylinders of 21 kgs., 17 kgs., 15 kgs. and 12 kgs.
would not be covered under the above Schedule-I but will be covered under Sr.
No. 453 of Schedule-III of Notification No. 1/2017-Central Tax (Rate), dated 28-6-
2017 (which reads as under) and would attract GST of 18% (9% SGST + 9%
CGST) :

S. Chapter/ Description of Goods
No. Heading/
Sub-heading/
Tariff item
453 Any Chapter Goods which are not specified in Schedule I, II, IV,
V or VI.

7. Further, Notification No. 1/2017-Central Tax (Rate), dated 28-6-2017
was amended by Notification No. 6/2018-Central Tax (Rate), dated 25-1-2018

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