Page 143 - GSTL_3rd September 2020_Vol 40_Part 1

2020 ] IN RE : AGARWAL COAL CORPORATION PVT. LTD. 77
It is necessary to examine the relevant provisions of CGST Act, 2017 and relevant
notification.
4.3 Supply is defined u/s. 7(1) of the CGST Act, 2017 as :
7. (1) For the purposes of this Act, the expression “supply” includes -
(a) all forms of supply of goods or services or both such as sale,
transfer, barter, exchange, licence, rental, lease or disposal
made or agreed to be made for a consideration by a person in
the course or furtherance of business;
(b) import of services for a consideration whether or not in the
course or furtherance of business and;
(c) the activities specified in Schedule I, made or agreed to be
made without a consideration;
4.4 In order to examine the issue regarding rate of tax to be charged on
supply, it is necessary to examine; Notification No. 1/2017-Central Tax (Rate),
dated 28 June, 2017 which provides for CGST tax rate of 2.5% on supply of coal
with similar rate in SGST, hereby effective rate being 5% (2.5% + 2.5%)

Schedule-I
Sl. Chapter/ Description of Goods
No. Heading/
Sub-heading/
Tariff item
(1) (2) (3)
158 2701 Coal; briquettes, ovoids and similar solid fuels man-
ufactured from coal

Notification No. 11/2017-Central Tax (Rate), dated 28 June, 2018 provides
for CGST rate of tax on intra-supply CGST rate with similar rate in SGST,
thereby effective rate being 18% (9% + 9%).

Sl. Chapter, Description of Service Rate Con-
No. Section or (per dition
Heading cent.)
(1) (2) (3) (4) (5)
30 Heading Other services (washing, cleaning and 9 -
9997 dyeing services; beauty and physical
well-being services; and other miscella-
neous services including services no-
where else classified).

4.5 Input Tax Credit definition is provided u/s. 2 of CGST Act as
under :
(62) ”input tax” in relation to a registered person, means the central tax,
State tax, integrated tax or Union territory tax charged on any supply of
goods or services or both made to him and includes -
(a) the integrated goods and services tax charged on import of
goods;
(b) the tax payable under the provisions of sub-sections (3) and
(4) of section 9;

GST LAW TIMES  3rd September 2020  159