Coal Handling & Distributor Charges to Attract 18% GST for Supplies: AAR

The Authority of Advance Ruling (AAR), Madhya Pradesh, has ruled that Coal Handling and Distributor Charges to Attract 18% Goods and Services Tax Grab the information of revised GST slab rates on consumer products in India, Although the GST council finalized the slab rates like 5%, 12%, 18% and 28%. Read more if such transaction is supposed to go to the consumer, expressly.

The ruling was provided amid an issue raised by the applicant M/s Agarwal Coal Corporation Pvt Ltd, who sought the ruling of the authority on whether 18% GST will be charged on the coal handling and distributor charges if such supplies are meant to go to the customers directly, or should he charge 5% GST just like that in the case of the supply of coal and the applicant will be allowed to avail GST for the supply of coal and the supply of coal handling and distributor charges.

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The applicant is engaged in the business of supply of coal across India and procures coal from domestic as well as international markets. The applicant cleared that he had paid 5% GST for inter-state and intra-state purchase of coal and 5% IGST Get to know all about the IGST (Integrated GST) model under GST law in India. Also, we have highlighted IGST model features and advantages with an illustration. Read more for the imports. They stocked the coal at a designated place on the port and supplied it to the customers from there. Numerous services are availed by the applicant between the procurement and final supply of coal.

The bench of AAR, with Manoj Kumar Chobey and Virendra Kumar Jain as members, ruled that coal handling and distributor charges will attract 18% GST for supplies instead of 5% if such supplies are made expressly to the consumer. “In light of the referred provisions we are of the opinion that input credit availed as per the conditions specified in section 16 shall be allowed for discharging the liability towards the supply of coal and supply of coal handling and distribution charges respectively,” the Authority said.