AAR: Composite contract of cutting live trees to obtain logs not exempt from GST

Karnataka AAR holds that activity of cutting and removal of standing live trees qualifies as ‘supply of timber’ covered under HSN 4403 and under the entry no. 134 of Schedule III of the Notification No. 1/2017 - Central Tax (Rate) and hence, liable to 9% CGST and similarly 9% KGST; Clarifies that it is a composite contract of cutting of live trees to obtain the logs, with transfer of timber logs being the principal supply in the composite supply; Perusing contract between...