The Gujarat Authority of Advance ruling (AAR) ruled that Navbharat LPG Bottling Company is liable to pay 18% GST on LPG sold to Commercial & Domestic Customers. The applicant is eligible to take the entire input cenvat credit @ 18% on purchases of LPG Gas in bulk.
The applicant, M/s. Navbharat LPG Bottling Company is engaged in the business of purchasing LPG Gas (Bulk) through Tanker and thereafter, refilling the same in two types of bottles- 17 kgs. and 21 kgs. and sell it to Commercial Customer on Rate of GST Applicable @18%. Secondly, they are refilling the gas in bottles of 12 kgs. and 15 kgs. also and selling it to Domestic Customers, on which the GST rate applicable is @5%.
The applicant sought Advance ruling on the issues relating to the determination of the liability to pay tax on sales of Gas sold in Bottle to Commercial Customer and Gas sold in Bottle to Domestic Customer and whether the applicant is eligible for entire I.T.C. @18% on Purchases of LPG Gas (bulk) through Tanker.
The Authority consisting of Sanjay Saxena and Mohit Agarwal ruled that the applicant would be liable to pay 18% GST (9% SGST and 9% CGST) on the LPG sold by them to their Commercial Customers.
The AAR further ruled that the applicant would be liable to pay 18% (9% SGST and 9% CGST) on the LPG sold to their Domestic Customers for the period up to January 24, 2018, and 5% (2.5% SGST and 2.5% CGST) on the LPG sold to their Domestic Customers with effect from January 25, 2018, onwards.
The AAR while addressing the second issue ruled that The applicant is eligible to take the entire input cenvat credit @18% on purchases of LPG Gas in bulk through Tanker subject to the fulfillment of the conditions/provisions (wherever applicable) for taking input tax credit as envisaged in Sections-16, 17 and 18 of the CGST Act, 2017 and Rules 36, 37, 40, 41 and 42 of the CGST Rules, 2017.