GST Exemption On Supply Of Dal To Department For Women, Children, Disabled & Senior Citizens: AAR
Mariya Paliwala
23 Feb 2024 9:00 AM GMT
The Telangana Authority of Advance Ruling (AAR) has ruled that no GST is payable on the supply of dal to the Department for Women, Children, Disabled, and Senior Citizens.The bench of S.V. Kasi Visweswara Rao and Sahil Inamdar has observed that the purchase is made for use by that institution and not for commercial or trade purposes. The supplies made by the applicant will be exempt from CGST...
The Telangana Authority of Advance Ruling (AAR) has ruled that no GST is payable on the supply of dal to the Department for Women, Children, Disabled, and Senior Citizens.
The bench of S.V. Kasi Visweswara Rao and Sahil Inamdar has observed that the purchase is made for use by that institution and not for commercial or trade purposes.
The supplies made by the applicant will be exempt from CGST and SGST if made to the institutional consumer.
The applicant, Narayan Trading Corporation, has been engaged in the trading of food grains, sugars, edible oils, etc. for the past 30 years and is a government contractor for the supply of the above-mentioned items directly and through nodal agencies as appointed by the Ministry from time to time.
The applicant submitted that they are making supplies to Hyderabad Agricultural Co-operative Association Limited (HACA) Hyderabad, which came into being in 1949, to serve the farming community of the erstwhile State of Hyderabad. That HACA commenced functioning on July 1, 1949. Originally, the area of operation of the society covered 16 districts of the then-Hyderabad State. The society thus comes under the Multi-State Co-operative Societies Act of 1984. HACA is an Apex Co-operative Marketing Society of the erstwhile state of Hyderabad.
The applicant sought an advance ruling on the issue of whether the Department for Women, Children, the Disabled, and Senior Citizens is covered under the definition of industrial consumer or institutional consumer.
The AAR noted that “institutional consumer” means the institution that buys packaged commodities bearing a declaration 'not for retail sale”, directly from the manufacturer, importer, or wholesale dealer for use by that institution and not for commercial or trade purposes. No GST is payable when supply The packaged commodities bear a declaration 'not for retail sale”; the purchase is made directly from the manufacturer, from an importer, or from a wholesale dealer; and the purchase was made for use by that institution and not for commercial or trade purposes.
Case No.: TSAAR Order No.06/2024
