Page 142 - GSTL_3rd September 2020_Vol 40_Part 1

76 GST LAW TIMES [ Vol. 40
1.13 The input tax credit so availed is to be utilized for discharging lia-
bility of tax on sale of coal and handling charges at the respective rates.
2. Questions raised before the authority
2.1 Whether the Applicant is liable to discharge tax liability @ 18% on
coal handling and distribution charges wherever supply of such services is in-
tended to be made expressly to a customer or will the Applicant be entitled to
charge GST at the rate of 5% as applicable on supply of coal?
2.2 Will the applicant be entitled to utilize the input tax credit availed
for discharging liability towards supply of coal and supply of coal handling and
distribution charges?
3. Department’s view point
The Joint Commissioner (In situ), CGST & Central Excise, Division-IV,
Indore, vide his letter IV(16)30-50/T/D-IV/Adj/18-19/10227, dated 6-6-2020 has
furnished the opinion of the department and it has been categorically opined that
(A) The issue has been examined and found that the applicant activities
are trading of coal and supply of coal and the same shall be taxable
at 5% (CGST 2.5% + SGST 2.5%) under Heading 2701 of Notification
No. 1/2017-Central Tax (Rate). They are also providing services
named as coal handling and distribution services which shall be
taxable at 18% (9% + 9%) under the Heading 9997 of Notification
No. 11/2017-Central Tax (Rate).
(B) As per the present scenario also the applicant is paying GST 18%
with availing benefit of ITC as per applicable rate which is correct
as per CGST Act, 2017.
Record of personal hearing
3.1 Adv. Dr. Arvind Singh Chawla and CA Pramod Shrivastava
(Group CFO), appeared on behalf of the applicant and reiterated submissions
already made in the application. They pleaded that pursuant to provisions of
CGST Act, 2017 and Notification 1/2017-C.T. (Rate); Notification 11/2017-C.T.
(Rate), supply of coal and coal handling & distribution services are taxable at 5%
and 18% respectively. Further, input tax credit availed on inputs and input ser-
vices are to be allowed for discharging aforesaid liability of tax.
4. Discussions and findings
4.1 We have carefully considered the submissions made by applicant in
the application, pleadings on behalf of Applicant made during the course of per-
sonal hearing and Department’s view provided by the Joint Commissioner,
CGST & Central Excise, Division, Indore.
4.2 We find that the short question before us pertains to :
(1) Taxability of supply of coal handling and distribution charges @
18% in case of supply of such services is intended to be expressly
made to a customer apart from sale of coal, and
(2) Utilization of input tax credit availed for discharging liability to-
wards supply of coal and supply of coal handling and distribution
charges respectively.

GST LAW TIMES  3rd September 2020  158