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Order dated 09/03/2021

Issue: i. What is the Rate of tax required in respect of erecting and commissioning of lifts installed for domestic use.
ii. What is the Rate of tax required in respect of erecting and commissioning of escalators installed for domestic use.

Crux: The rate of GST applicable to erection and commissioning of lifts / escalators installed for domestic use is 18%, as the said services are covered under Lift and escalator installation services, falling under SAC 995466, in terms of Sl.No. 3(xii) of the Notification No. 11/2017 (Central Tax Rate) dated 28-06-2017, as amended.

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Order dated 08/02/2021

Issue: Whether the activity of the applicant is in the nature of Job work, as defined under Section 2 (68) of CGST Act, 2017 and whether Notification No.20/2019-Central Tax (Rate) dated 30.09.2019 is applicable on them?

Crux: The activity of the applicant is in the nature of job work covered under SAC 998873 and Notification No.20/2019-Central Tax (Rate) dated 30.09.2019 is applicable to the applicant. The applicable rate of tax depends on the aspect whether the principal (owner of the goods on which job work is done) is registered under CGST/KGST Act 2017 or not. If Principal is registered the impugned job work attracts 12% GST in terms of item (id) of SL.No.26 of Notification No. 11/2017- Central Tax (Rate) dated 28.06.2017 and if the principal is not registered the impugned job work attracts 18% GST item (iv) of SL.No.26 of Notification No. 11/2017- Central Tax (Rate) dated 28.06.2017 read with Circular No. 126/45/2019-GST dated 22.11.2019.

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Order dated 29/01/2021

Issue: Whether applicant should charge GST @ 18% for providing manpower services only on the services charges or on the total bill amount?

Crux:  The value of the taxable supply of manpower services is the transaction value equivalent to the bill amount which is inclusive of actual wages of the manpower supplied and the additional 2% amount paid to the applicant.

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Order dated 29/01/2021

Issue: Whether applicant should charge GST @ 18% for providing security guards and housekeeping services to Kuvempu University, Shivamogga?

Crux: The applicant is liable to discharge GST @ 18% (9% CGST + 9% KGST) on forward charge basis for providing manpower services to Kuvempu University, Shivamogga.

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Order dated 29/01/2021

Issue: 1. What will be the SAC applicable to the activities undertaken by applicant?
2. Whether the exemption given under Notification no. 9/2017-Integrated Tax (Rate) dated 28.06.2017 is applicable to the applicant?
3. Whether the applicant can avail input tax credit of tax paid or deemed to have been paid?
4. Whether the applicant is liable to pay tax on outward services, if yes, at what rate?
5. Whether the applicant is required to be registered under the Act?

Crux: 1. The activities undertaken by the applicant is covered under SAC 998599.
2. The exemption given under Notification no. 9/2017-Integrated Tax(Rate) dated 28.06.2017 is not applicable to the transactions of the applicant.
3. The applicant can avail the input tax credit of tax paid on his inward supplies to him, subject to the provisions of section 16 of the CGST Act, 2017.
4. The applicant is liable to tax on outward supplies at the rate of 9% CGST and 9% KGST.
5. Yes, the applicant is liable to be registered under section 22 of the CGST Act, 2017.

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Order dated 29/01/2021

Issue: 1. Is the applicant eligible to be registered under GST Act?
2. Is there any tax liability on services rendered to the Hospitals / Laboratories/ Bio banks registered in United States of America (USA) and other countries includes export of intellectuals like clinical data completions, analysis, clinical opinion advisory consultation through phone calls, video conference, mails and other electronic devices and the applicant is living in India and services rendered from the place of India?
3. Is there any tax liability on heath care services  medical services and paramedical services (Part-time practicing in Clinic) rendered in India to the recipient from India?

Crux:  1. The applicant is liable for registration under the GST Acts.
2. There is no liability of tax on diagnostic and treatment services rendered to Hospitals/ Laboratories/ bio banks registered in United States of America and other countries. However, the business promotion services rendered, as per the contract submitted, are liable to tax under the GST Acts.
3. The diagnostic and treatment services are covered under Health Care Services and the medical services and part time practising in clinic are exempted from the payment of GST.

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Order dated 07/11/2020

Issue: Whether the total amounts received by the Owner towards the advances or sale consideration of the flats fallen to his share of 40% in terms of the Joint Development Agreement dated 19.05.2016 and the subsequent Area Sharing Agreement dated 03.01.2018, are not amenable for payment of GST, since Applicant has sold or agreed to sell or gifted, the flats after obtaining Occupancy Certificate dated 26.08.2019 and that Applicant has not received any part of the sale consideration prior to the said date of occupancy certificate, thus falling under Entry No. 5 of Schedule III of CGST Act read with Notification No. 11/2017-Central Tax (Rate) dated 28.06.2017 and the corresponding provisions of SGSTAct.

Crux: The amounts received by the applicant, either by himself or through his agents, towards sale of their share of flats are not exigible to GST, if and only if the entire consideration related to such sale of flats is received after the issuance of Completion Certificate dated 26.08.2019, as the said activities are treated neither subject to Clause 5(b) of the Schedule-II of the CGST Act, 2017.

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Order dated 12/10/2020

Issue: 1. Whether the transaction of supplying Kharif Arhar (Tur) Crops and Green Gram crops from farmers to NAFED is a taxable supply? What is the rate of tax to be charged for sale of Agricultural produce to NAFED, if it is to be treated as taxable supply?
2. Whether GST paid on purchase of Gunny bags by them eligible to be claimed as Input tax credit?
3. Whether provisions of section 51 and Notification 50/2018 - Central Tax dated 13th September 2018 applicable on applicant i.e. is applicant required to deduct TDS u/s 51 of CGST/KGST Act, 2017 on payments to be made to NAFED?

Crux: 1. Supply of Kharif Arhar (Tur) and Green Gram to NAFED is an exempted supply as per entry no.45 of the Notification no.2/2017-Central Tax (Rate) dated 28th June, 2017.
2. GST paid on purchase of Gunny bags shall not be claimed an input tax credit as per sub-section 2 of Section 17 of the CGST Act 2017.
3. The provisions of TDS as prescribed under Section 51 of CGST/KGST Act, 2017 does not apply to the applicant.

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Order dated 09/10/2020

Issue: 1. Whether pure consultancy services provided to the Municipalities and Corporations are exempt from GST as per the serial number 3 of the notification 12/2017-Central tax (Rate) dated 28.06.2017?
2. Whether pure consultancy services provided to the private individuals is taxable? If yes, what is the rate of tax and relevant notification?
3. Whether the input tax paid on the purchase of capital goods like furniture, computer, lab equipments, drone cameras, total station, auto level instruments, etc., and on certain services can be claimed to the extent of taxable supply of services?

Crux: 1. Pure consultancy services (without supply of goods) provided by the applicant to the Municipalities and Corporations (local bodies) and State Government Departments, are exempt from GST as per the serial no. 3 of the Notification no. 12/2017-Central Tax (Rate) Dated 28.06.2017.
2. Pure consultancy services provided to the private individuals is taxable at 9% under CGST and 9% under SGST as per the entry no. 21 of the Notification no.11/2017-Central Tax (Rate) Dated 28/06/2017.
3. Input tax paid on the purchase of capital goods like furniture, computer, lab equipments, drone camera, total station, auto level instruments, etc., and on certain inputs services shall be restricted to so much of the input tax as is attributable to the taxable supplies made by the applicant as per subsection 2 of Section 17 of the CGST Act 2017.

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Order dated 08/10/2020

Issue: 1. Whether the activities of a liaison office amount to supply of services?
2. Whether a liaison office is required to be registered under CGST Act, 2017?
3. Whether liaison office is liable to pay GST?

Crux: 1. The liaison activities being undertaken by the applicant (LO) in line with the conditions specified by RBI amounts to supply under Section 7(1)(c) of the CGST Act 2017.
2. The applicant (LO) is required to be registered under CGST Act 2017.
3. The applicant (LO) are liable to pay GST if the place of supply of services is India.

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AAAR Order

Order dated 22/02/2021

Issue: Whether the activities of a liaison office amount to supply of services?
Whether liaison office is required to be registered under CGST Act?
Whether liaison office is liable to pay GST?

Crux:1. The activities of the liaison office do not amount to supply of services.
2. The liaison office is not required to be registered under GST as there is no taxable supply.
3. The liaison office is not liable to pay GST.

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Order dated 08/10/2020

Issue: 1. Whether input tax credit is required to be restricted on medicines supplied to patients admitted in hospital?
2. Whether input tax credit is required to be restricted on medicines supplied to patients treated as out-patients?
3. Whether input tax credit is required to be restricted on medicines supplied to other than inpatients and out-patients?
4. Whether input tax is required to be restricted on supply of food and beverages to the patients admitted in hospital?

Crux: 1. The input tax credit is required to be restricted on medicines used in the supply of health care services provided to inpatients.
2. The input tax credit is required to be restricted on medicines used in the supply of health care services provided to outpatients. Further in case medicines are supplied independent of health care services, then the applicant is eligible to claim input tax credit subject to payment of taxes on such independent supply of medicines.
3. The input tax credit is not required to be restricted on medicines supplied to others i.e. customers, who are neither inpatients nor outpatients, as there is no health care services provided and is liable to pay tax on such outward supply of medicines.
4. The input tax credit is to be restricted on supply of food & beverages supplied to inpatients and is part of the health care services.

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Order dated 16/09/2020

Issue: 1. For the purpose of arriving at the value of rental income, whether the applicant can seek deduction of property taxes and other statutory levies.
2. For the purposes of arriving at total income from rental, whether notional interest on the security deposit should be taken into consideration.
3. Whether the applicant is entitled for exemption of tax under the general exemption of Rs.20 lakhs.

Crux:  1. The applicant can’t deduct the property taxes and other statutory levies for the purpose of arriving at the value of rental income.
2. The notional interest on the security deposit shall be taken into consideration, for the purposes of arriving at total income from rental, only if it influences the value supply of RIS service i.e. monthly rent.
3. The applicant is entitled for exemption of tax under the general exemption of Rs.20 lakhs, subject to the condition that their annual turnover, which includes monthly rent and notional interest, if it influences the value of supply, does not exceed the threshold limit.

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AAAR Order

Order dated 11/01/2021

Issue: 1. For the purpose of arriving at the value of rental income, whether the applicant can seek deduction of property taxes and other statutory levies?
2. For the purposes of arriving at total income from rental, whether notional interest on the security deposit should be taken into consideration?
Whether the applicant is entitled for exemption of tax under the general exemption of Rs.20 lakhs?

Crux: 1. For the purpose of arriving at the value of rental income, the Appellant cannot deduct the amount paid as property tax to the Municipal Authority or any other statutory levies levied under any law for the time being in force, other than the CGST, SGST, IGST and Compensation Cess, subject to the condition that it is charged separately by the Appellant.
2. For the purpose of arriving at the total rental income, the notional interest earned on the security deposit is not to be taken into consideration.

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Order dated 16/09/2020

Issue: whether the services performed by them are exempted by virtue of item (b) of serial no. 66 of Notification no.12/2017-CT (R) dated 28.06.2017?

Crux:   The activity of the applicant, is covered under “Other Educational Support Services”, under SAC 999299, and is related to conduct of examination and hence is exempted, in terms of SI.No.66 of Notification No.12/2017-CentraI Tax (Rate) dated 28.06.2017.

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Order dated 11/09/2020

Issue: 1. Is the activity of maintaining the facilities at the layout from the funds collected from the members of the Society a service attracting GST? Maintenance involves upkeep and maintenance of amenities and due to the length of the period roads, drainages and other UGD facilities need to be re- done/ re-constructed.

2. If answer to question no.(1) above is yes then, does the society’s collection of sum towards maintenance charges calculated on yearly basis in one lump-sum for certain length of time say 10 years, should the GST be paid even for the amount pertaining to the un-expired period?

3. The society is collecting Water charges from the residents for recovery of charges for water. The entire cost of the water is recovered from the members on monthly basis, does it attract GST?

4. Does the society have to pay GST for collecting lump-sum amount as endowment fund, the proceeds of which would be utilized for maintenance charges in terms of the maintenance as indicated in Appendix A above, of the layout with an express condition that the amount would be returned to the Site owners upon the taking over of the layout by the local body as the Society would be utilizing only accretions to the endowment fund from year to year.

5. In the event that any or all of the items from (1) to (4) is rendered taxable whether the same is exempt under Notification No.12/2017 entry no 77 respect of the value of the maintenance amount collected from the members of the society to the extent of Rs.7,500/- (Rupees Seven thousand five hundred) per month?

Crux:  1. Yes, The activity of maintaining the facilities at the layout from the funds collected from the members of the Society is a service attracting GST.

2. The contributions collected by the applicant from the member of the housing society either annually or once in ten years, if such amount when utilized for sourcing of goods or service from the third person for the common use of its member, the amount utilised in that particular tax period, from both individual contributions and from the endowment fund, must be divided by recipients of such service in the society and if the said amount per member does not exceed Rupees Seven thousand five hundred in that tax period, such amount is exempted from tax as per entry No.77 of Notification No.12/2017-Central Tax (Rate) dated 28.06.2017 as amended by the Notification No.2/2018-dated 25-01-2018. Suppose if that amount per member in that tax period exceeds Rupees Seven thousand five hundred, then entire amount is taxable.

3. The water charges collected separately on monthly basis is exempt from the levy of GST as per entry 99 of the Notification No.2/2017-Central Tax (Rate) dated 28th June, 2017. If the applicant collects water charges as a part of service provided without being shown separately on the basis of usage and sourcing it from both the contributions and endowment fund, then the same should be added to the total consideration of services and apportioned which determining the threshold for the purpose of taxing or exemption as per the entry no.77 of Notification no. 12/2017- Central Tax (Rate) date d 28.06.2017 as amended by the Notification no. 2/2018-dated 25-01-2018.

4. The amount collected from the member who is selling the site and ceases to be a member, as endowment fund is liable to tax under GST.

5. The entry No.77 of Notification no.12/2017-Central Tax (Rate) dated 28.06.2017 as amended by the Notification no. 2/2018-dated 25-01-2018 is applicable to the applicant only to the extent of amount of Rupees Seven thousand five hundred per month per member collected by way of reimbursement of charges or share of contribution for sourcing of goods or services from a third person for the common use of its members.

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Order dated 11/09/2020

Issue: Whether the term “other civil structure” used in the definition of “Plant and Machinery” restricts the Land filling Pit from considering it as Plant & Machinery and thereby restricts ITC to be availed on it.

Crux:  The Land filling pit is not a plant and machinery but a civil structure.

Order

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Order dated 07/09/2020

Issue: 1. Can the applicant avail GST Input on the equipments, furniture etc. which are purchased for this project.
2. Can the applicant avail GST input on the reagents/ consumables they would be purchasing for performing the tests as the reagents / consumables are taxable and not the test.

Crux:  1. The applicant can avail the GST input tax credit on the equipments. Furniture, etc. which he is purchasing for the project in question, subject to the restriction of the same in terms of Section 17(2) of the CGST Act 2017.

2. The applicant can avail GST input tax credit on the reagents/ consumables which are purchased for performing the test, subject to the restriction of the same in terms of Section 17(2) of the CGST Act 2017..

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Order dated 10/08/2020

Issue: 1. The correct classification of Security Excise Adhesive Labels i.e., HSN Code applicable
2. The rate of tax applicable on supply of Security Excise Adhesive Labels

Crux:  1. The HSN Code of Security Excise Labels is 4911.

2. The rate of tax applicable is 6% under the CGST Act and 6% under the HGST Act and 12% under the IGST Act.

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Order dated 30/07/2020

Issue: who in turn supply to Indian Railways after assembly) be classified under HSN 8607 or to be classified under HSN 7325 as other cast articles of Iron or Steel?

Crux:  Railway parts such as Couplers, Knuckle, Locks, Toggle, Yoke etc., manufactured and supplied by the applicant to M/s. Sanrok Enterprises (who in turn supply to Indian Railways after assembly) are classifiable under HSN 8607. The applicable rate of GST on the impugned goods is 5% in terms of entry number 241 of Schedule I to the Notification No.1/2017-Central Tax (Rate) dated 28.06.2017, till 29.09.2019 and effective from 30.09.2019, the rate of GST is 12%, in terms of entry number 205G of Schedule II to the Notification No.1/2017-Central Tax (Rate) dated 28.06.2017, as amended by Notification No.14/2019-Central Tax (Rate) dated 30.09.2019, with no refund of unutilized input tax credit, in terms of Sl.No.14 of Notification No.5/2017- Central Tax (Rate) dated 28.06.2017.

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Order dated 21/05/2020

Issue: whether catering services provided to educational institutions sponsored by State/ Central / Union territory which is exempted services under Sl. No. 66 of the Notification No.12/2017-Central Tax (Rate) dated 28.06.2017. As per Circular 65/39/2018, TDS under GST is applicable only for taxable supply contracts and as we are the exempted service provider. Whether TDS is applicable for our services?

Crux: 1. The supply of services made by the applicant in the form of supply of food and drinks to the educational institutions is covered under entry no. 66 of Notification No.12/2017- Central Tax (Rate) dated 28.06.2017 and entry no.66 of Notification (12/2017) No. FD 48 CSL 2017 dated 29.06.2017 and are hence exempted from CGST and SGST.

2. The amount received for such exempted service and is not liable for tax deduction at source under Section 51 of the CGST Act and section 51 of KGST Act.

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Order dated 20/05/2020

Issue: whether the HSN code applicable for kraft paper made honeycomb boards be 48081000 or 48089000?

Crux: The kraft paper honeycomb board or paper honeycomb board is classified under the heading 48089000.

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Order dated 20/05/2020

Issue: Whether he can bill the scooter at 5% GST under HSN 8713 along with retro-fitment and it shall not restrict any input tax credit on purchase of vehicle under HSN 8711 at 28% GST?

Crux: The retrofitted vehicle merits classification under heading 8711 20 19 and hence attracts GST @ 28% and applicant is entitled for input tax credit of tax paid on purchase of vehicle i.e. scooter.

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Order dated 20/05/2020

Issue: whether applicant should charge GST @12 % for service provided to NCBS as per Notification No 24/2017 Central Tax (Rate) dated 21-09-2017?

Crux:  The works contract service provided by the applicant to NCBS is liable to tax at:
(a) 9% CGST as it is covered under item no. (xii) of Serial No.3 of Notification No.11/2017 - Central Tax (Rate) dated 28.06.2017 as amended from time to time under the CGST Act and
(b) 9% KGST as it is covered under item no. (xii) of Serial No.3 of Notification 11/2017 No. FD 48 CSL 2017 dated 29.06.2017 as amended from time to time under the KGST Act.

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Order dated 20/05/2020

Issue: a) Whether the applicant raise the tax invoice addressed to the foreign buyer and delivery to applicant works by paying output GST and claiming back by the applicant as input GST?
b) Whether applicant raise self-invoice by paying the output GST and claiming back by the applicant as input GST?
c) Whether the applicant raise the tax invoice addressed to the foreign buyer by paying the output GST under reverse charge mechanism?
d) Applicant seeks the procedure to be followed under GST Act for discharging GST liability.

Crux:  1. In the case of manufacture of Die by the applicant and invoiced to the recipient, without moving the goods, the applicant has to raise the tax invoice addressed to the foreign buyer. Since it is an intra-State supply, he has to collect the CGST and SGST and discharge the liability. The applicant is not eligible to claim said payment as input tax credit on the invoice raised by him as he is not the recipient. Further if the said steel die is scrapped at applicant's end as per the instruction of the overseas customer without moving out of the country, while supplying the die scrap to the third party, the applicant has to issue intra/interstate tax invoice depending upon the nature of the transaction and collect and pay the applicable tax as per the provisions of the GST Acts.

2. In the case of manufacture of Die by the Thailand supplier, if applicant physically imports the Die to a place in India then applicant has to pay the IGST on reverse charge mechanism and claim the IGST tax paid as input tax credit, subject to conditions applicable. Further if the steel die belonging to the applicant is scrapped at the location of the overseas supplier without die coming to India, then such transaction is occurring outside the taxable territory, i.e. India and hence not under the purview of GST Acts.

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Order dated 22/05/2020

Issue: a) Whether the service provided for type 2 test (the specified service) classifies as ‘Online Information and Database Retrieval Services’?
b) If the type 2 test provided by the applicant does not qualify as ‘Online Information and Database Retrieval Services’, whether the applicant is liable to pay integrated tax on the supply of said services to non-taxable online recipients in India?
c) Whether the service provided for type 3 test (the specified service) classifies as ‘Online Information and Database Retrieval Services’?
d) If the type 3 test provided by the applicant does not qualify as ‘Online Information and Database Retrieval Services’, whether the applicant is liable to pay integrated tax on the supply of said services to non-taxable online recipients in India?

Crux:  (a) The service provided for type 2 test classifies as OIDAR Services.
(b) Nil in view of (a) above
(c) Service provided for type 3 test does not classify as OIDAR Services.
(d) IGST is exempted by virtue of Sl. No. 10 of Notification No. 09/2017-IGST (Rate) dated 28.06.2017.

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AAAR Order

Order dated 13/11/2020

Issue: a) Whether the service provided for type 2 test (the specified service) classifies as Online Information and Database Retrieval Services?
b) If the type 2 test provided by the applicant does not qualify as Online Information and Database Retrieval Services, whether the applicant is liable to pay integrated tax on the supply of said services to non-taxable online recipients in India?
c) Whether the service provided for type 3 test (the specified service) classifies as Online Information and Database Retrieval Services?
d) If the type 3 test provided by the applicant does not qualify as Online Information and Database Retrieval Services, whether the applicant is liable to pay integrated tax on the supply of said services to non-taxable online recipients in India?

Crux: The authority allow the appeal filed by the Principal Commissioner of Central Tax, Bangalore West Commissionerate and set aside the ruling given by the Authority for Advance Ruling in KAR/ADRG 37/2020 dated 22nd May 2020 with regard to the classification of the Type-3 test. It hold that service provided for the Type-3 test is classifiable as an OIDAR service.

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Order dated 22/05/2020

Issue: whether the preparation of Whole Wheat parota and Malabar parota be classified under Chapter heading 1905, attracting GST at the rate of 5%?

Crux:  The product ‘parota’ is classified under Chapter Heading 2106 and is not covered entry No.99A of Schedule I to the Notification No. 01/2017-Central Tax (Rate) dated 28.06.2017, as amended vide Notification No.34/2017-Central Tax (Rate) dated 13.10.2017.

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AAAR Order

Order dated 21/09/2020

Issue: whether the preparation of Whole Wheat parota and Malabar parota be classified under Chapter heading 1905, attracting GST at the rate of 5%?

Crux: AAAR dismissed the appeal filed by M/s ID Fresh Foods (India) Pvt Ltd on all counts. The order passed by the authority for advance ruling is declared void ab initio as it is vitiated by the process of suppression of material facts. AAAR however, do not give a ruling on the question � Whether the preparation of Whole Wheat parota and Malabar parota be classified under Chapter heading 1905, attracting GST at the rate of 5%? � since the matter is pending in a proceeding under this Act.

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Order dated 04/05/2020

Issue: i. Out of the sources of Income/ Revenue which revenue income shall be considered for Aggregate Turnover for registration?
ii. Out of nature of income / revenue, when the supply, even if exempted, need to be considered?

Crux:  (1) The incomes received towards (i) salary/remuneration as a Non-Executive Director of a private limited company, (ii) renting of commercial property and (iii) renting of residential property and (iv) the values of amounts extended as deposits/loans/advances out of which interest is being received are to be included in the aggregate turnover, for registration.

(2) The income received from renting of residential property is to be included in the aggregate turnover, though it is an exempted supply.

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Order dated 04/05/2020

Issue: whether the sale of Micafungin sodium by the DTA unit of the applicant is covered under Serial No.114 of Entry No.180 of the Notification No.1/2017-Central Tax (Rate) dated 28.06.2017 and therefore, is leviable to GST at the rate of 5%?

Crux: The sale of Micafungin sodium by the DTA unit of the applicant is not covered under Serial No.114 of Entry No.180 of the Notification No.1/2017-Central Tax (Rate) dated 28.06.2017 and therefore, is not entitled for concessional rate of GST at the rate of 5%

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AAAR Order

Order dated 21/10/2020

Issue: Whether the sale of Micafunign Sodium by the DTA unit of the applicant is covered under Serial No. 114 of Entry No. 180 of the Rate Notification No.01/2017-Central Tax (R) and therefore, is livable to GST at the rate of 5%"

Crux: The authority set aside the ruling no No. KAR ADRG 31/2020 dated 4th May 2020 passed by the Advance Ruling Authority and answer the question of the Appellant as follows:
The sale of Micafunign Sodium by the DTA unit of the Appellant is covered under Serial No. 114 of Entry No.180 of the Rate Notification No.01/2017-IT(R) / CT (R) and therefore, is leviable to GST at the rate of 5%.

Order

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Order dated 28/04/2020

Issue:1. The authority has floated tenders for collection of vehicle entry fees, which is an access to temple premises. The highest bidding was at Rs.56,08,077/- The Authority wants to know whether KGST/ CGST has to be collected on the said amount.
2. The authority sells laddoos, kallu sakkare, Thirtha Prasada, Cloth bags, and other articles beginning from Rs.5/- up to Rs.100/-. Whether KGST / CGST has to be collected on the same.
3. The authority has approximately 100 shops which are given on lease through auction. Once in a year the authority conducts public auction and the highest bidder is permitted to run the shop for a year. Whether KGST / CGST has to be collected on the same.
4. The authority also conducts e-procurement auction for the service of tonsuring the heads of the devotees. The highest bidder is given the right to collect fees for tonsuring the head. Whether KGST / CGST has to be collected on the tendered amount.
5. The authority has 16 Cottages/ rooms with 242 rooms which are given on rent and collects “vasathi nidhi kanike”. The Kanike ranges between Rs.130 and Rs.750. Whether KGST / CGST has to be collected on the same.
6. The authority collects seva fees and utsava fees ranging from Rs.50/- to Rs.15,000/- which are in the nature of religious activities. Whether KGST / CGST has to be collected on the same.
7. The authority also collects “Special Darshan Fees” of Rs.100, Rs.150, and Rs.300 for darshan of Malai Mahadeshwara Swamy. Whether KGST / CGST has to be collected on the same.
8. The authority runs one Kalyana Mandapa at Kollegal, in Chamarajanagar District. The right to collect service charges is through tender cum auction. The highest bidder is permitted to collect service charges. Whether KGST / CGST has to be collected on the same.
9. The authority also runs a Kalyana Mantapa at M.M.Hills and the rent charged per day is at Rs.5000/- Whether KGST / CGST has to be collected on the same.
10. The authority floats tenders for collection of Vahana Pooja in front of the temple. The highest bidder is given the right to collect the charges. Whether KGST / CGST has to be collected on the same.
11. The authority is collecting vehicle entry fees which is an access to temple premises. Whether such collection of entry fee is liable to KGST / CGST may be clarified.
12. The authority wants to float tenders for similar such activities in future. Whether the rights given on tender or auction is liable to CGST/ KGST may be clarified.”

Crux:   1. Regarding question no.1 related to the auctioning for collection of vehicle entry fees, question no.4 related to auctioning of service of tonsuring the heads of devotees, question no.8 related to the auctioning of right to collect service charges and question no.10 related to auctioning of the right to collect charges for vahana pooja - are supply of services falling under SAC 9997 and are covered under the entry no.35 of Notification No.11/2017-Central Tax (Rate) dated 28.06.2017 and are liable to CGST at the rate of 9%. Similarly, they are also liable to tax at 9% under KGST under entry no.35 of Notification (11/2017) No. FD 48 CSL 2017 dated 29.06.2017.

2. Regarding question no.2, the sales of prasadam by the applicant, is exempt from tax as per entry no. 98 of the Notification No.2/2017 - Central Tax (Rate) dated 28.06.2017 and entry no.98 of Notification (02/2017) No. FD 48 CSL 2017 dated 29.06.2017. But if goods other than prasadam are sold, they would be liable to tax at appropriate rates applicable to those goods.

3. Regarding question no.3, relating to renting of commercial shops, the services are exempt if the rental value is less than Rs.10,000-00 per month per shop as they are covered under the entry no. 13 of the Notification No.12/2017- Central Tax (Rate) dated 28.06.2017 and entry no.13 of the Notification (12/2017) No. FD 48 CSL 2017 dated 29.06.2017. But if the rent per shop is more than Rs.10,000-00 per month, the same would be liable to tax at 9% CGST under SAC 9972 under entry no.16 of Notification No.11/2017- Central Tax (Rate) dated 28.06.2017 and at 9% KGST under entry no.16 of Notification (11/2017) No. FD 48 CSL 2017 dated 29.06.2017.

4. Regarding question no.5 relating to providing of services of accommodation to pilgrims where the charges are less than Rs.1000 per day per room, the same is exempt vide Notification No.12/2017 - Central Tax (Rate) dated 28.06.2017 and Notification (12/2017) No. FD 48 CSL 2017 dated 29.06.2017.

5. Regarding question no.6 relating to collection of seva charges and question no.7 relating to the collection of special darshan charges, the same is exempt from CGST and KGST as they are not covered under supply and also exempt as they are covered under entry no 13(a) of Notification No.12/2017- Central Tax (Rate) dated 28.06.2017 and Notification (12/2017) No.FD 48 CSL 2017 dated 29.06.2017 respectively.

6. Regarding question no.9, relating to renting out Kalyanamandapam, the same is exempt from CGST and KGST, if the rental is less than Rs.10000-00 per day, as per entry no 13(b) of Notification No.12/2017- Central Tax (Rate) dated 28.06.2017 and Notification (12/2017) No.FD 48 CSL 2017 dated 29.06.2017 respectively.

7. Regarding question no.11, relating to collecting of entry fees providing access to the temple, the same is liable to tax at 9% under CGST Act and at 9% under KGST Act, as per entry 11(ii) of Notification No.11/2017- Central Tax (Rate) dated 28.06.2017 and Notification (11/2017) No. FD 48 CSL 2017 dated 29.06.2017.

8. Regarding question no.12, relating to future tendering of the right to collect charges and provide services, the same is liable to tax at 9% under CGST Act and at 9% under KGST Act as per entry no.35 of Notification No.11/2017-Central Tax (Rate) dated 28.06.2017 and Notification (11/2017) No. FD 48 CSL 2017 dated 29.06.2017.

Order

Summary

Order dated 23/04/2020

Issue: Rate of tax on sale of Poha Bran or Avalakki Bran or Bran of beaten rice which supplied to cattle feed manufacturing units"

Crux:  The Poha bran is classified under HSN 2302 40 90 and attracts tax at the rate of 2.5% each under CGST and SGST Act.

Order

Summary

Order dated 23/04/2020

Issue: what is the applicable rate of tax (GST) on parched / puffed gram (Hurigadale / Putani)?

Crux:  1. The puffed gram, commonly called as “Fried Gram” and as “Hurigadale” or “Putani” in Kannada are
a. Exempt from tax under the CGST Act and Karnataka GST Act if they are not branded and put up in unit containers.
b. Liable to tax at 2.5% under CGST Act and 2.5% under the Karnataka GST Act, if they are branded and put up in unit containers.

Order

Summary

Order dated 23/04/2020

Issue:1. Whether he is eligible to be in the composition scheme as his aggregate turnover is much less than Rs. 50,00,000/-?
2. Whether the rate of composition tax applicable is 1% for the turnover of goods (sales) and 6% for the turnover of service (rent). The two separate taxes amounts to be totalled and paid or is it 6% as a whole for the aggregate turnover of goods and service turnover that is to be paid?

Crux: 1. The applicant is eligible to be in the composition scheme under Section 10 of the CGST Act, 2017 if the turnover of services of the applicant does not exceed ten per cent of turnover in a State or Union territory in the preceding financial year or five lakh rupees, whichever is higher.

2. The applicant is not eligible to opt to pay tax under the Notification No.2/2019- Central Tax (Rate) dated 07.03.2019 and under the Notification (02/2019) No. FD 48 CSL 2017 dated 07.03.2019 of the Government of Karnataka as the applicant is registered as a Composition Taxpayer.

3. The rate of tax applicable on the entire value is 3% CGST and 3% KGST and he cannot pay tax at 1% on supply of goods and 6% tax on the supply of services.

Order

Summary

.

Order dated 23/04/2020

Issue: a) Whether selling of religious books attracts GST?
a. If taxable, what would be the rate of GST and HSN Code?
b. If exempted, the category of exempted goods and HSN Code?

Crux:  1. The supply of books by the applicant to the religious schools are supply of printed books which is covered under HSN Code 4901 and is exempt from tax as they are covered under following entries

a. Under the CGST Act, entry no. 119 of Notification No.2/2017-Central Tax (Rate) dated 28.06.2017

b. Under the Karnataka Goods and Services Tax Act, entry no. 119 of Notification (02/2017) No. FD 48 CSL 2017 dated 29.06.2017

c. Under the IGST Act, entry no. 119 of Notification No.2/2017-Integrated Tax (Rate) dated 28.06.2017

Order

Summary

Order dated 10/03/2020

Issue: (i) Whether the street lighting activity under the Energy Performance Contract dated 05.12.2016 is to be considered as Supply of goods or a Supply of Services under the CGST / KGST Act 2017? Accordingly, whether the transaction can be sub-classified as a  Gujarat ˜Pure Supply of Service Gujarat  or  Gujarat ˜Pure Supply of goods Gujarat  or Composite Supply of goods and services being a works contract?
(ii) What is the rate of tax applicable on this transaction? Whether the applicant is entitled to the benefit of exemption under entry 3 or 3A of Notification No.12/2017-Central Tax (Rate) dated 28.06.2017, as amended? If not, what is the applicable rate of tax?
(iii) If the transaction is treated as supply of services, what is the time of supply of such services? Whether KEONICS is liable to tax only once the energy saved is certified by the energy auditor? Whether amount credited in joint ESCROW account can be termed as receipt Gujarat  especially because the said amount is not under control of KEONICS until the conditions are met?
(iv) Without prejudice to above submissions, if the transaction is treated as a supply of goods, what is the time of supply of such supply? Whether KEONICS would be liable to tax only at the time when the possession and ownership in goods are vested to TMC at the end of tenure? What would be the value of the aforesaid taxable supply given the fact that it is based on energy savings which can be computed only when the energy auditor certifies the workings submitted by KEONICS ?

Crux:  1. The street lighting activity under the Energy Performance Contract dated 05.12.2016 amounts to composite supply where the principal supply is that of supply of goods.
2. The rate of tax applicable on this transaction is 12% (CGST-6% & SGST-6%), in terms of Sl. No. 226 of Schedule II to the Notification No. 1/2017-CentraI Tax (Rate) dated 28.06.2017, as amended. Further, the applicant is not entitled to the benefit of exemption under entry 3 or 3A of Notification No.12/2017-Central Tax (Rate) dated 28.06.2017, as amended, as the impugned supply is not that of pure services.
3. The instant transaction amounts to a composite supply, with supply of goods being principal supply and hence the impugned question is redundant.
4. The time of supply is the date of invoice and the consideration is equal to the value of the invoice, the GST rate being 12%.

Order

Summary

AAAR Order

Order dated 27/09/2020

Issue: (i) Whether the street lighting activity under the Energy Performance Contract is to be considered as Supply of goods or a Supply of Services under the CGST / KGST Act 2017? Accordingly, whether the transaction can be sub-classified as a Pure Supply of Service  or Pure Supply of goods  or Composite Supply of goods and services being a works contract ?
(ii) What is the rate of tax applicable on this transaction? Whether the applicant is entitled to the benefit of exemption under entry 3 or 3A of Notification no. 12/2017-Central Tax (Rate) dated 28.06.2017, as amended? If not, what is the applicable rate of tax?
(iii) If the transaction is treated as supply of services, what is the time of supply of such services? Whether  appellant is liable to tax only once the energy saved is certified by the energy auditor? Whether amount credited in joint ESCROW account can be termed as receipt especially because the said amount is not under control of appellant until the conditions are met?
(iv) Without prejudice to above submissions, if the transaction is treated as a supply of goods, what is the time of supply of such supply? Whether appellant would be liable to tax only at the time when the possession and ownership in goods are vested to TMC at the end of tenure? What would be the value of the aforesaid taxable supply given the fact that it is based on energy savings which can be computed only when the energy auditor certifies the workings submitted by appellant?

Crux: AAAR set aside the advance ruling passed by AAR and answered the questions raised in the original application as follows:
i. The street lighting activity under the energy performance contract is considered as a composite supply of goods and services with the supply of service being the predominant supply. The service is classified under Heading 999112.

ii. The rate of tax applicable on the above supply is 9% CGST and 9% SGST as per entry serial no 29 of Notification no 11/2017 CT (R) dated 28-06-2017. The appellant is not eligible for the benefit of exemption under entry 3 or 3A of exemption Notification no.12/2017-Central Tax (Rate) dated 28.06.2017

iii. The time of supply of services is the earliest of the following dates:
(a) Date of issue of the invoice to TMC along with the Energy savings report; OR
(b) Date on which the payment is entered in the books of account of the supplier; OR
(c) Date on which the payment is credited to his bank account.

iv. The time of supply of goods is not relevant as the transaction is held to be a supply of service.

Order

Summary

Order dated 18/03/2020

Issue: 1. Whether the amount collected towards Local Area Development Fund, which is kept separately and used for development of the affected area as per the guidelines of MNRE, can be treated as not a supply as per the provisions of CGST/KGST/IGST Act 2017 and not levied to tax?
2. Without prejudice to the above, if it is treated as Supply, what will be the HSN/ SAC code under which it would be levied to Tax?
3. Without prejudice to the above, if it is treated as Supply, will it be exempt a per SI.No.3 or 3A of Notfn.12/2017-CT (R) as the activities to be carried out are covered under Article 243 G and / or Article 243 W of the constitution of India?

Crux: 1. The amount collected by the applicant towards LAD fund forms part of value of supply of rental/leasing service and hence is taxable under forward charge mechanism.

2. The applicable SAC for the impugned activity is 997212.

3. The exemption under SI.No.3 or 3A of Notification 12/2017-CentraI Tax (Rate) dated 28.06.2017 is not applicable in the impugned activity, as it is not qualify to be a pure service, provided to Central Government, State Government or Union Territory or Local Authority or a Government Entity by way of any activity in relation to any function under article 243 G or 243 W of the Constitution of India.

4. Payment of GST, under Reverse Charge Mechanism (RCM), under Entry No.5 of Notification No. 13/2017-CentraI Tax (Rate) dated 28.06.2017, on the payments made at the direction of the Committee formed for Local Area Development be considered as service rendered by Government to Applicant, is not applicable to the instant case, as the Government of Karnataka / Local Authority are not involved in provision of any service.

Order

Summary

Order dated 31/03/2020

Issue:1) Whether Leasing of Satellite Transponder which is covered under SAC Code 997319 be charged at 5% GST as per HSN Code 8803 - Parts Goods of Heading 8802 (Satellites)?
2) Whether the applicant can levy GST @5% for Leasing of Satellite Transponder Services which is covered under SAC 997319 as per HSN Code 8803-parts goods of Heading 8802 (Satellites) from the date of commencement of the service-Leasing of Satellite Transponder?

Crux: 1. The service of Leasing of Satellite Transponders, covered under SAC 9973 19, falls under the Entry No.17 (viii) of Notification No. 8/2017 -Integrated Tax (Rate) dated 28th June 2017, as amended, and is taxable to GST at the rate of 5% IGST (i.e. 2.5% of CGST and 2.5% of KGST), as applicable on the supply of like goods (transponder - part of communication satellite) involving the transfer of title in goods, covered under 8803 90 00, in terms of Entry no. 245 of the Schedule I of the Notification No. 1/2017 - Integrated Tax (Rate) dated 28th June, 2017, as amended.

2. The applicant cannot levy GST @ 5% for Leasing of Satellite Transponder Services covered under SAC 997319, as per HSN Code 8803-parts goods of Heading 8802 (Satellites), from the date of commencement of the said service that has already been provided, if tax (GST) is already charged & collected under any invoice. Any excess collection of tax needs to be paid to the Government within the specified time and the mistake shall only be corrected through a debit note-credit note mechanism, if applicable and subject to such conditions and within such time as specified in Section 34 of the CGST Act.

Order

Summary

Order dated 23/04/2020

Issue: Whether the supply of power packs, freight and insurance service and commissioning/ installation services has to be treated as Composite Supply� as defined in section 2(30) of CGST Act, 2017 read with section 8(a) of CGST Act, 2017 or freight and insurance service and commissioning / Installation can be treated independent of supply of power packs given that installation and commissioning takes place after 4-5 months of supply of power packs.

Crux:  1. The supply of power packs and the freight and insurance charges would form part of the value of supply of power packs.
2. The supply of commissioning / installation services supplied by the applicant are independent services supplied by the applicant and is independent of the supply of power packs.

Order

Summary

Order dated 23/04/2020

Issue: Rate of tax on sale of Poha Bran or Avalakki Bran or Bran of beaten rice which supplied to cattle feed manufacturing units"

Crux: The Poha bran is classified under HSN 2302 40 90 and attracts tax at the rate of 2.5% each under CGST and SGST Act.

Order

Summary

Order dated 23/04/2020

Issue: whether the HLA Typing Services obtained by the applicant from LSL DE falls under the scope of “health care services by a clinical establishment”?

Crux: 1. The services of HLA Typing received by DKMS BMST Foundation India from the overseas laboratory is covered under the definition of “health care services by a clinical establishment” and thereby is exempted from IGST leviable thereon and accordingly not taxable in the hands of the applicant under reverse charge mechanism.

2. The applicant is not liable to pay Integrated Goods and Services Tax on the testing services performed by the overseas laboratory outside India on the Human Buccal Swabs sent by DKMS BMST from India

Order

Summary

Order dated 23/04/2020

Issue: 1. Whether software supplied by the applicant qualifies to be treated as Computer software resulting in Supply of goods?
2. Whether the benefits of Notifications No. 45/2017-Central Tax (Rate) and 47/2017-Integrated Tax (Rate) dated 14.11.17 are applicable to the supplies made to the institutions given in the notification?

Crux: 1. The supply of software supplied by the applicant which is not designed and developed specific to any customer and sold without any customisation, qualifies as “supply of goods” and “supply of computer software as goods”.

2. The benefits of Notifications No.45/ 2017-Central Tax (Rate) and Notification No. 47/2017-Integrated Tax (Rate) both dated 14.11.2017 are applicable to the supplies made if the same are made to recipients if they are covered under Column (2) and if the conditions as specified in Column (4) of the said Notifications.

Order

Summary

Order dated 31/03/2020

Issue: 1. Whether the daily accommodation services ranging from Rs. 300 to Rs. 500 per bed are eligible for exemption under Notification No.12/2017-Central Tax?
2. Whether the monthly accommodation services ranging from Rs. 6,900 to Rs. 12,500 per bed is eligible for the exemption under Notification No.12/2017- Central Tax?
3. Whether the said notification would be applicable if LLP decides to charge additional charges for the extra facilities opted by the inhabitants in addition to the facilities that are currently included in the tariff received by the inhabitants but the overall price would be less than the present exemption limit of Rs. 1000 per day per Unit?

Crux:  1. The daily accommodation services ranging from Rs. 300 to 500 per bed are eligible for exemption under Notification No.12/2017- Central Tax (Rate) dated 28.06.2017
2. The monthly accommodation service ranging from Rs. 6,900 to Rs. 12,500 per bed is eligible for exemption under Notification No.12/2017- Central Tax (Rate) dated 28.06.2017.
3. If the applicant charges additional charges for extra facilities opted by the inhabitants in addition to the facilities that are currently included in the tariff received by the inhabitants but the overall price would be less than the present exemption limit of Rs. 1,000/- per day per unit, then the same is liable to tax at the rates applicable to them as they are independent supplies, if they do not belong to the Group 9963. If they belong to the Group 9963, then the same are exempt as per entry no.14 of the Notification No.12/2017-Central Tax (Rate) dated 28.06.2017.

Order

Summary

Order dated 31/03/2020

Issue: 1. Whether separate registration is required in Karnataka state ? If yes, whether agreement would suffice as address proof since nothing else is with the assessee and service recipient will not provide any other proof?
2. (a) If registration is not required in Karnataka state and if we purchase goods from dealer of Rajasthan and want to ship goods directly from the premises of dealer of Rajasthan to township at Karnataka then whether CGST & SGST would be charged from us or IGST by the dealer of Rajasthan ?

Crux: 1) The applicant need not obtain a separate registration in Karnataka, to execute the project in Karnataka. However, they are at liberty to obtain the said registration, if they are able & intend to have a fixed establishment at the project site in Karnataka.

2) (a) The dealer in Rajasthan has to charge CGST & SGST when the goods, purchased by the applicant, are shipped to project site in Karnataka, under bill to ship to transaction in terms of Section of the IGST Act 2017.

(b) The dealer in Karnataka has to charge IGST when the goods, purchased by the applicant, are shipped to project site in Karnataka, under bill to ship to transaction in terms of Section 10(1)(b) of the IGST Act 2017.

3) No ruling is given on this question as it does not cover under Section 97(2) of the CGST Act 2017.

Order

Summary

Order dated 23/03/2020

Issue: a) Whether applicant dealing in second hand goods and tax is to be paid on the difference between the selling price and purchase price as stipulated in Rule 32(5) of CGST Rules, 2017 if dealer purchases used / second hand gold jewellery from individuals who are not dealers under the GST and at the time of sale there is no change in the form/ nature of goods?

b) Whether ITC is allowed to be claimed if purchases are made from the dealer from whom marginal scheme if applicable?

Crux: 1. In the case of applicant dealing in second hand goods and invoicing his supplies as second hand goods�, the valuation of supply of second hand gold jewellery which are purchased from individuals who are not registered under GST and there is no change in the form and nature of such goods, can be made as prescribed under sub-rule (5) of Rule 32 of the Central Goods and Service Tax Rules.

2. In case the applicant purchases second hand jewellery from registered person, the applicant is eligible to claim input tax credit on such inward supplies but if he claims the input tax credit against such inward supplies he would not be eligible for the margin scheme of valuation as prescribed in sub-rule (5) of Rule 32 of the Central Goods and Services Tax Rules for the outward supplies of such second hand jewellery.

Order

Summary

Order dated 23/03/2020

Issue: a) Whether under Section 15(2)(e) of CGST Act, for calculating value if taxable supply�, the subsidy amount granted to the farmer by Horticulture / Agriculture / Sericulture Department of Government of Karnataka under PMKSY scheme or any other Central / State Government approved schemes but disbursed to the supplier to be treated as subsidy in the hands of the supplier and to be excluded while ascertaining the transaction value

b) Whether the question of inclusion or exclusion of subsidy amount in the value of taxable supply would arise under Section 15(2) of the CGST Act, when such subsidy is not impacting the transaction value, which is price actually paid or payable for the supply of goods by the customer i.e., farmers and when the subsidy is disbursed by Horticulture / Agriculture / Sericulture Department to the supplier on behalf of recipient of the supply (farmers)?

c) Whether supplier would be entitled to refund of input tax credit accumulation, which may arise if subsidy is not treated as part of taxable value?

Crux:  1. The amount of assistance received by the farmer or on account of the farmer from the Government Department has no bearing on the price and hence on the value of supply made by the applicant to the farmer and is not covered under Section 15(2)(e) of the CGST Act, 2017.
2. There is no question of excluding the amount of assistance or subsidy received from the transaction value or value of taxable supply.
3. The question of entitlement of refund does not arise.

Order

Summary

Order dated 12/03/2020

Issue:" 1) Is Our Export of Services attract IGST under RCM
2) Is our Services considered as Intermediary Services
3) Is IGST paid under RCM eligible to ITC
4) Provision in GST Returns to Show the transactions
5) We are not collecting IGST from our Customer and is absorbed as Cost-impact on the transaction value?

Crux:  1. Export of services by the applicant, if any, do not attract IGST under RCM, as the applicant becomes supplier for the said services.
2. The services being provided by the applicant are squarely covered under the Intermediary Services and accordingly are taxable under forward charge mechanism, in the hands of the applicant.
3. The payment of IGST under RCM does not arise as the applicant is a supplier but not the recipient of import of services.
4. No rulings are given in respect of fourth and fifth questions, as they do not get covered under Section 97(2) of the CGST Act 2017 and hence out of the jurisdiction of this authority.

Summary

Order dated 18/03/2020

Issue: Whether the supplies provided by the Applicant are exempt or taxable under GST?

Crux: Various supplies along with their interpretation of law has been provided in the table enclosed in summary.

Order

Summary

Order dated 18/03/2020

Issue: whether supply of purified water to public in empty unsealed cans is exempt under GST law.

Crux: The supply of purified drinking water to public in empty unsealed cans is not entitled for exemption from GST.

Order

Summary

Order dated 18/03/2020

Issue: 1) Whether the applicant can take credit of IGST paid on import of goods?
2) Whether applicant can issue tax invoice with IGST to the customer?
3) Whether applicant needs to obtain registration in the state where the port of clearance is located?

Crux: 1. The applicant is eligible to claim credit of IGST paid on import of goods as per section 20 of the IGST Act 2017 read with section 16 of the CGST Act, 2017.
2. The applicant can issue tax invoice with IGST to the customer as per section 20 of the IGST Act 2017 read with Section 31 of the CGST Act 2017 for the interstate transaction as provided under section 7(1) of the IGST Act 2017, when the goods are directly dispatched from the port of import with invoicing done from the registered place of business.
3. The applicant need not obtain registration in the state where the port of clearance is located, if he is not making any supply from the State in which the port is located.

Order

Summary

Order dated 17/02/2020

Issue: What is the rate of tax applicable on services provided under sub-contract to main contractor, who in turn provides to M/s Maharashtra State Skill Development Society (MSSDS), in respect of training of Building and other construction workers (skill development training) and admissibility of SI. No. 69 and Si No. 72 of the notification 12/2017- Central Tax (Rate) New Delhi, dated 28th June, 2017

Crux: The rate of 18% GST is applicable on services to be provided under sub-contract to main contractor, who in turn provides to M/s Maharashtra State Skill Development Society (MSSDS), in respect of training of Building and other construction workers (skill development training) and the serial no. 69 or serial no.72 of the notification 12/2017- Central Tax (Rate) New Delhi, dated 28th June, 2017 are not applicable to the applicant.

Order

Summary

Order dated 17/02/2020

Issue: 1. Whether the transaction of printing of content provided by the customer, on Poly Vinyl Chloride (PVC) banners and supply of such printed trade advertisement material is supply of goods?
2. What is the classification of such trade advertisement material if the transaction is supply of goods?
3. What is the classification and applicable rate of CGST on the supply of such trade advertisement material if the transaction is that of supply of service?

Crux:  1. The transaction of printing of content provided by the customer, on Poly Vinyl Chloride (PVC) banners and supply of such printed trade advertisement material is supply of service.
2. The classification of aforesaid supply of service is 9989 of the scheme of classification of services.
3. The applicable rate of GST on the supply of aforesaid service is 18% up to 30.10.2017 & 12% effective from 31.10.2017, as per entry no.27 of the Notification no. 11/2017-Central Tax (Rate) dated 28.06.2017, as amended.

Order

Summary

AAAR Order

Order dated 28/09/2020

Issue: (i) Whether the transaction of printing of content provided by the customer, on Poly Vinyl Chloride (PVC) banners and supply of such printed trade advertisement material is supply of goods?
(ii) What is the classification of such trade advertisement material if the transaction is supply of goods?
(iii) What is the classification and applicable rate of CGST on the supply of such trade advertisement material if the transaction is that of supply of service?

Crux: AAAR set aside the ruling passed by the advance ruling authority and answer the questions of the appellant as follows:
(i) The transaction of printing of content provided by the customer, on Poly Vinyl Chloride (PVC) banners and supply of such printed trade advertisement material is supply of goods.
(ii) The trade advertisements printed and supplied by the appellant is classifiable under Chapter Heading 4911 10 of the customs tariff act and attracts GST rate of 12% in case of inter-state supplies and 6% CGST and 6% SGST in case of Intra state supplies vide serial no. 132 of Schedule II to Notification no. 1/2017-IT (Rate) & 1/2017-CT (Rate) both dated 28.06.2017 respectively.
(iii) Not applicable since the transaction is held to be a supply of goods.

Order

Summary

Order dated 21/09/2019

Issue: a) Whether the royalty paid in respect of Mining Lease can be classified as “Licensing services for Right to use minerals including its exploration and evaluation falling under the heading 9973 attracting GST at the same rate of tax as applicable on supply of like goods involving transfer of title in goods?
b) Whether statutory contributions made to District Mineral Foundation (DMF) and National Mineral Exploration Trust (NMET) as per MMDR Act, 1957 amounts to “Supply” and whether the same is liable for GST under reverse charge.

Crux:  1. The royalty paid in respect of Mining Lease is a part of the consideration payable for the Licensing services for right to use minerals including exploration and evaluation falling under the Heading 9973 which is taxable at the rate applicable on supply of like goods involving transfer of title in goods upto 31.12.2018 and taxable at 9% CGST and 9% SGST from 01.01.2019 onwards under the residual entries of Serial No. 17 of the Notification No. 11/2017-Central Tax dated 28.06.2017.
2. The statutory contribution made to District Mineral Foundation (DMF) and National Mineral Exploration Trust (NMET) as per MMDR Act, 1957 are also part of the consideration payable for the Licensing services for right to use minerals including exploration and evaluation.
3. The supply is of Licensing services for right to use minerals including exploration and evaluation and the value of such supply of services includes royalty, DMF and NMET contributions.
4. Since the supply of services by the Government to a business entity located in the taxable territory, are covered under Serial No.5 of Notification No. 13/2017- Central Tax dated 28.06.2017, the liability to pay tax is on the recipient of such services on reverse charge mechanism as the Licensing services for right to use minerals including exploration and evaluation are provided by the State Government to a business entity, i.e., the applicant.

Order

Summary

Order dated 21/09/2019

Issue: Whether the applicant is liable to discharge GST under reverse charge, for the contribution made towards National Mineral Exploration Trust(NMET) and District Mineral Foundation (DMF), in light of serial no.5 of the Notification no. 13/2017- Central Tax (Rate) dated 28.06.2017?”

Crux: The applicant is liable to pay GST under reverse charge, for the payment made towards NMET and DMF, in light of serial no.5 of the Notification no.13/2017- Central Tax (Rate) dated 28 06 2017.

Order

Summary

Order dated 23/09/2019

Issue: 1. As a manufacturer of rice, can the applicant sell Rice under Registered Brand with 5% GST and also in Unregistered Brand with affidavit & disclaimer under GST exempted category?
2. Is it compulsory to de-register the registered brand to sell goods in unregistered brand with nil rate of tax under GST?
3. Whether sale of rice is exempt, if applicant forgo the actionable claim on brand name after de-registration?

Crux:  1. The manufacturers of rice who sells rice under Registered Brand name are liable to GST @ 5% on such sale of rice. Those manufacturers who sells rice under unregistered Brand name foregoing their actionable claim or enforceable right on such brand name by filing an affidavit and printing disclaimer on unit container to that effect are exempted from GST.
2. The manufacturers can hold the registered brand name while selling the rice under unregistered brand after following all the other conditions prescribed. However, if they sell in the registered brand name, they would not be eligible for exemption.
3. The manufacturers of rice, selling under deregistered brand name, are eligible for exemption of GST after foregoing voluntarily their actionable claim or enforceable right on such brand name by filing an affidavit and printing disclaimer on unit container regarding foregoing of their actionable claim or enforceable right on such brand name.

Order

Summary

Order dated 24/09/2019

Issue: a) Whether the services provided by the applicant to the foreign client amounts to export of services and hence zero-rated under GST law; and
b) Whether the applicant acts as a "pure Agent" while receiving amounts from the foreign clients and passing it on to the Local Research Institutions.

Crux:  1. The first question whether the services provided by the applicant to the foreign client amount to export of service cannot be answered as Section 97 of the CGST Act, 2017 does not empower the Authority to give Ruling on the Place of Supply of Goods or Services.
2. In respect of question 2 it is Ruled that the applicant qualifies to be a Pure Agent in receiving amounts from the foreign clients and passing it on to the Local Research Institutions, as provided in the agreements placed before the Authority.

Order

Summary

Order dated 25/09/2019

Issue: The applicant has sought advance rulings in respect of the following questions:
1. Classification of service provided by Sri DMS Hospitality Private Limited to Sodexo Food Solutions India Private Limited.
2. Classification of service provided by the Building owner to Sri DMS Hospitality Private Limited.
3. Applicability of GST Notification No. 12/2017-Central tax (Rate) dated 28th June 2017, “Services by way of renting of residential dwelling for use as residence” is exempt from GST.
4. Applicability of GST on EMI per month charged from Sodexo Food Solutions India Private Limited and security services provided by Sodexo Food Solutions India Private Limited.

Crux: 1. The classification of service provided by Sri DMS Hospitality Private Limited to Sodexo Food Solutions India Private Limited is covered under SAC 997212 and hence under entry no. 16 of Notification No. 11/2017 - Central Tax (Rate) dated 28.06.2017 and the security services provided is covered under SAC 998529 and hence under entry 23(ii) of Notification no. 11/2017- Central Tax (Rate) dated 28.06.2017 and are hence liable to tax at respective rates.

2. The classification of service provided by the building owner to M/s. Sri DMS Hospitality Private Limited is covered under SAC 997212 and hence liable to tax under entry no. 16 of Notification no.11/2017 - Central Tax (Rate) dated 28.06.2017.

3. The entry no. 12 of Notification no. 12/2017- Central Tax (Rate) dated 28.06.2017 - “services by way of renting of residential dwelling for use as residence” is not applicable to the present case on hand.

4. The EMI charged on the goods supplied is an installment for the goods transferred and is a supply of goods under clause 1(c) of Schedule II to the CGST Act and hence is liable to tax at the rate applicable to each of the goods supplied at the time of delivery of such goods.

Order

Summary

AAAR Order

Order dated 23/02/2020

Issue: i. Classification of service provided by Sri DMS Hospitality Private Limited to Sodexo Food Solutions India Private Limited?
ii. Classification of service provided by the Building owner to Sri DMS Hospitality Private Limited?
iii. Applicability of GST Notification No. 12/2017-Central tax (Rate) dated 28th June 2017, Services by way of renting of residential dwelling for use as residence� is exempt from GST?
iv. Applicability of GST on EMI per month charged from Sodexo Food Solutions India Private Limited and security services provided by Sodexo Food Solutions India Private Limited?

Crux: AAAR uphold the advance ruling pronounced by AAR and dismiss the appeal filed by appellant.

Order

Summary

Order dated 27/09/2019

Issue: Whether delivery of spares by the applicant would constitute a supply under Schedule I of the CGST Act, 2017", by the applicant to JNSIPL, Maharashtra ?

Crux: The delivery of spares by the applicant to the ultimate consumer on account of M/s. JNSIPL, Maharashtra, where invoice is raised against M/s. JNSIPL, Maharashtra and the goods are delivered to the ultimate consumer of M/s. JNSIPL, Maharashtra, would not amount to a supply to the ultimate consumer under the GST Act. However, the supply is made to M/s. JNSIPL, Maharashtra and invoice needs to be raised on them.

Order

Summary

Order dated 27/09/2019

Issue: The applicant has sought advance ruling in respect of that he wants to be a registered GTA, as per the Notification no. 12/2017-Central Tax (Rate) dated 28.06.2017 and also wants give his vehicles on hire basis and is questioning whether this is allowed.?

Crux:  The registered person can be a Goods Transport Agency and also a supplier of goods vehicles to another GTA on hire basis at the same time subject to the appropriate tax treatments as notified in Notification No.11/2017-Central Tax (Rate) dated 28.06.2017, Notification No.12/2017- Central Tax (Rate) dated 28-06.2017 and Notification No.13/2017-Central Tax (Rate) dated 28.06.2017, as amended from time to time.

Order

Summary

Order dated 30/09/2019

Issue: a) Determination of liability to pay tax on the co-ordination services provided by the company to its affiliates outside India?
b) Determination of liability to pay tax on “Pass Through” expenses charged by the company to its affiliates located outside India?

Crux: 1.The first question whether the services provided by the applicant to the foreign client amount to export of service cannot be answered as Section 97 of the CGST Act, 2017 does not empower the Authority to give Ruling on the Place of Supply of Goods or Services.
2. Regarding the “pass though expenses”, the applicant acts as a “pure agent” in receiving amounts from the foreign clients and passing it on to the Local Research Institutions.

Order

Summary

Order dated 30/09/2019

Issue: a) Whether in case of separate contracts for supply of goods and services for a solar power plant, there would be separate taxability of goods as ‘Solar Power Generating System’ at 5% and services at 18%.
b) Whether parts supplied on standalone basis (when supplied with PV modules) would also be eligible to concessional rate of 5% as parts of solar power generation system.
c) Whether benefit of concessional rate of 5% of solar power generation system and parts thereof would also be available to sub-contractors.

Crux: 1. The contract of the applicant is covered under works contract under section 2(119) of the CGST Act and by item (ii) of entry no. 3 of the Notification no.11/2019-Central Tax (Rate) dated 28.06.2017 upto 31.12.2018. From 01.01.2019, the same is taxable on the values worked out separately for goods and services under both entry no. 38 of Notification No.11/2019-Central Tax (Rate) dated 28.06.2017 (as amended by Notification No.27/2018-Central Tax (rate) dated 31.12.2018) and Entry No.234 of Schedule I of Notification No.1/2017-Central Tax (Rate) dated 28.06.2017 as amended by Notification no.24/2018-Central Tax (Rate) dated 31.12.2018, and the values must be as per the explanation provided therein.

2. The answer to the second question is that parts supplied on standalone basis (when supplied with PV modules) would be eligible to concessional rate of 5% as parts of solar power generation system.

3. The answer to the third question is that the benefit of concessional rate of 5% of solar power generation system and parts thereof would be available to sub-contractors if the sub-contract is only for supply of goods. If the entire EPC contract is sub-contracted then the rate of tax applicable shall be the same as that applicable to the contractor and as ruled above in response to question number 1.

Order

Summary

Order dated 30/09/2019

Issue: 1) Whether the applicant is liable to pay tax on renting of temporary residential rooms for consideration to the devotees and renting of space for shops and stalls for the purpose of religious programmers where the predominant object is not to do business but for advancement of religion?
2) Whether the applicant is liable to pay tax on renting of temporary residential rooms as per the following categories, to the devotees to stay for the purpose of religious programmers where charges per room is less than one thousand per day, if answer to the question 1 is yes?
(i) Category-I: 2 BHK 430 sq.ft., including facilities such as water, electricity, cot, bed, pillow, bedspread, one AC, and having two rooms, hall, kitchen, rest-room + toilet, with cooking facility and no cleaning services.
(ii) Category-II: 1 BHK 300 sq.ft., including facilities such as water, electricity, cot, bed, pillow, bedspread, one AC and having one room, hall, kitchen, rest-room + toilet, with cooking facility and no cleaning services.
(iii) Category-Ill: Single room, 100 sq.ft., including facilities such as water, electricity, cot, bed, pillow, bedspread, common rest rooms and toilets and no cleaning and cooking facility services.
(iv) Category-IV: Single room, 150 sq.ft., including facilities such as water, electricity, cot, bed, pillow, bedspread, one AC and having rest room and toilet. No cleaning and cooking facilities.
(v) Category-V: Dormitory consisting 12 beds, including facilities such as water, electricity, two AC, bed, pillow, bedspread, common rest rooms and toilets. Charges per bed ranging from Rs.250-00 per day.
3) Whether applicant is liable to pay tax on renting of space for stalls, where the predominant object is not to do business but for advancement of religion, if answer to the question 1 is yes?
4) Whether the applicant is liable to pay tax on supply of food and beverages at subsidized rates to the devotees, where the predominant object is not to do business but for advancement of religion?
5) Whether the applicant is liable to pay tax on providing space for registered person without consideration for supply of food and beverages to the devotees, where consideration is received by registered person directly from devotees?
6) Whether applicant is liable to pay tax for acting intermediary for booking hotel rooms to the pilgrims from outside?

Crux: 1.The applicant is liable to pay tax in renting of temporary residential rooms for consideration to the devotees and renting of space for shops and stalls.
2. The applicant is liable to pay tax on renting of temporary residential rooms of all categories if the declared tariff of a unit of accommodation is Rs.1000-00 or more per day or equivalent.
3. The applicant is liable to pay tax on renting of space for stalls.
4. The applicant is liable to pay tax on supply of food and beverages at subsidized rates to the devotees.
5. The applicant is liable to pay tax on providing space for registered person without consideration for supply of food and beverages to the devotees, only if the applicant and such registered person are covered under the definition of “related persons” as defined in Explanation to Section 15 of the CGST Act, 2017.
6. The applicant is liable to tax for acting as an intermediary for booking of hotel rooms to the pilgrims from outside, if he does not satisfy all the conditions prescribed for a pure agent (i.e the services must be procured from suppliers of accommodation service in addition to the service he supplies on his own account).

Order

Summary

AAAR Order

Order dated 02/03/2020

Issue: 1) Whether the applicant is liable to pay tax on renting of temporary residential rooms for consideration to the devotees and renting of space for shops and stalls for the purpose of religious programmers where the predominant object is not to do business but for advancement of religion?
2) Whether the applicant is liable to pay tax on renting of temporary residential rooms as per the following categories, to the devotees to stay for the purpose of religious programmers where charges per room is less than one thousand per day, if answer to the question 1 is yes?
(i) Category-I: 2 BHK 430 sq.ft., including facilities such as water, electricity, cot, bed, pillow, bedspread, one AC, and having two rooms, hall, kitchen, rest-room + toilet, with cooking facility and no cleaning services.
(ii) Category-II: 1 BHK 300 sq.ft., including facilities such as water, electricity, cot, bed, pillow, bedspread, one AC and having one room, hall, kitchen, rest-room + toilet, with cooking facility and no cleaning services.
(iii) Category-Ill: Single room, 100 sq.ft., including facilities such as water, electricity, cot, bed, pillow, bedspread, common rest rooms and toilets and no cleaning and cooking facility services.
(iv) Category-IV: Single room, 150 sq.ft., including facilities such as water, electricity, cot, bed, pillow, bedspread, one AC and having rest room and toilet. No cleaning and cooking facilities.
(v) Category-V: Dormitory consisting 12 beds, including facilities such as water, electricity, two AC, bed, pillow, bedspread, common rest rooms and toilets. Charges per bed ranging from Rs.250-00 per day.
3) Whether applicant is liable to pay tax on renting of space for stalls, where the predominant object is not to do business but for advancement of religion, if answer to the question 1 is yes?
4) Whether the applicant is liable to pay tax on supply of food and beverages at subsidized rates to the devotees, where the predominant object is not to do business but for advancement of religion?
5) Whether the applicant is liable to pay tax on providing space for registered person without consideration for supply of food and beverages to the devotees, where consideration is received by registered person directly from devotees?
6) Whether applicant is liable to pay tax for acting intermediary for booking hotel rooms to the pilgrims from outside?

Crux: AAAR uphold the advance ruling and dismissed the appeal filed by M/s Acharya Shree Mahashraman Chaturmas Pravas Vyavastha Samiti Trust on all counts.

Order

Summary

Order dated 30/09/2019

Issue: a) Whether the value of bus passes distributed by the applicant to the commuters is to be included in the value of facilitation charges as per section 15(2) of the CGST Act, 2017 and KGST Act, 2017?
b) Whether the supply service in the hands of the applicant could be classified as merely a supply of facilitation services between and the commuters?

Crux: 1. The Value of the bus passes distributed by the applicant to the Commuters and the facilitation charges is to be included in the value of services provided by the applicant.
2. Regarding the second question of “whether the supply of service in the hands of the applicant could be classified merely a supply of facilitation service between BMTC and the commuters’, the answer is in the “negative”.

Order

Summary

AAAR Order

Order dated 14/02/2020

Issue: 1.Whether the value of bus passes distributed by the applicant to the commuters is to be included in the value of facilitation charges as per section 15(2) of the CGST Act, 2017 and KGST Act, 2017?
2. Whether the supply of service in the hands of the applicant could be classified as merely a supply of facilitation services between BMTC and the commuters?

Crux: AAAR uphold the advance ruling and dismiss the appeal filed by M/s Ascendas Services (India) Pvt. Ltd.

Order

Summary

Order dated 30/09/2019

Issue: whether entry 3(vi)(a) to Notification no.8/2017 - Integrated Tax (Rate) is applicable for services provided to electricity supply companies (wholly owned Government of Karnataka undertakings) by way of construction, erection, commissioning, installation, completion, etc., which attracts levy of 12%?"

Crux:  The services provided by the applicant to the Electricity Supply Companies (wholly owned Government of Karnataka Undertakings) by way of construction erection, commissioning, installation, completion, etc, are not covered under entry 3(vi)(a) of the Notification No.12/2017- Central Tax (Rate) dated 28.06.2017 or under entry 3(vi)(a) of the Notification No.8/2017-Integrated Tax (Rate) dated 28.06.2017 as amended from time to time and consequentially are not eligible to be taxed at a lower rate of 12% GST and hence are liable to be taxed at 18% GST.

Order

Summary

AAAR Order

Order dated 17/02/2020

Issue: whether entry 3(vi)(a) to Notification no.8/2017 -Integrated Tax (Rate) is applicable for services provided to electricity supply companies (wholly owned Government of Karnataka undertakings) by way of construction, erection, commissioning, installation, completion, etc., which attracts levy of 12%.?

Crux: AAAR uphold the advance ruling and dismiss the appeal filed by the appellant.

Order

Summary

Order dated 20/09/2019

Issue: 1.Whether disposing off assets (no cenvat /vat credit was taken) fastened to the building on delivering possession to the lessor, on which no consideration will be received, shall fall within the ambit of “Supply” as per Section 7 of CGST Act, 2017 and shall be chargeable with GST, as per provisions of CGST, KGST and IGST Act,2017 and rules contained therein?
2. If the answer to above question is in affirmative, should the value appearing in the books as on the date of disposal may be construed as the “open market value” on which GST is to be discharged as per Rule 27 of the CGST rules 2017?

Crux:  1. The transfer of assets fastened to the building on delivering possession to the lessor free shall amount to supply within the meaning of “supply” within the section 7 of the CGST Act, 2017 and is chargeable to tax under the GST Acts.

2. The value of such supply of goods would be
(a) open market value of such supply,
(b) value of supply of goods of like kind and quality;
(c) 110% of the book value of such goods in the books of accounts,
and if none of the above is possible, it needs to be determined as per the rule 31.

Order

Summary

Order dated 19/09/2019

Issue: a) Whether filters manufactured solely and principally for use by/in Indian Railways and supplied directly to Indian Railways are classifiable under HSN Heading 8421 or under HSN Heading 8607 of the Customs Tariff (which has been borrowed for classification purposes under GST regime)?
b) Whether the aforementioned classifications of subject goods i.e. filter alter if identical goods are supplied to a distributor instead of Indian railways directly, and the distributor in turn effects supply to Indian railways?

Crux:  The filters are classifiable under HSN Heading 8421. The classification of the goods shall not alter on account of supply by distributor to Railways.

Order

Summary

AAAR Order

Order dated 10/01/2020

Issue:a) Whether filters manufactured solely and principally for use by / in Indian Railways and supplied directly to Indian Railways are classifiable under HSN Heading 8421 or under HSN Heading 8607 of the Customs Tariff?
b) Whether the aforementioned classification of filter will change if the identical goods are supplied to a distributor instead Indian Railways directly, and the distributor in turn ejects supply to Indian Railways?

Crux: We uphold the order passed by the Advance Ruling Authority and appeal filed by the appellant M/s. Parker Hannifin India Pvt. Ltd, stands dismissed on all counts.

Order

Summary

Order dated 18/09/2019

Issue: "A. Whether the printed text books for PUC Board classifiable under HSN Code 4901 1010 supplied to resellers is exempt from the payment of CGST and SGST?
B. What is the applicable rate of CGST and SGST on printing and binding of brochures, books, calendars, pamphlets on job work basis to the Government authority and other printers?
C. What is the applicable rate of CGST and SGST on binding of diary, catalogues and books on job work basis?
D. What is the applicable rate of CGST and SGST on printing and supply of text books and work books to the State Government for onward supply to schools?
E. Whether the printing and supply of periodicals and magazines referred in HSN code 4901 exempt from payment of GST?

Crux:  1.The printed text books, classifiable under HSN Code 4901, supplied to resellers are covered under Entry No.119 of Notification No.2/2017-CT (Rate) dated 28.6.2017 and are exempt from the payment of CGST and SGST.
2. The printing and binding of brochures, printed books and pamphlets, on a job work basis attracts 2.5% CGST and 2.5% SGST under clause (ii) of entry no.26 of Notification No.11/2017-CT (Rate) date 28.06.2017 as amended by Notification No.20/2017-CT (Rate) dated. 22/08/2017 whereas printing and binding of calendars attracts 6% CGST and 6% SGST under clause (iia) of Entry No.26 of Notification No.11/2017-CT (Rate) date 28.06.2017 as amended by Notification No.31/2017-CT (Rate) dated 13.10.2017.
3. The binding of Diary, Catalogues and Books carried out on job work basis attracts CGST @ 9% and SGST @ 9% under clause (iii) of Entry no. 26 of Notification No.11/2017-CT (Rate) date 28.06.2017 as amended by Notification no.31/2017-CT (Rate) dated 13.10.2017.
4. The printing of textbooks and workbooks and supplied back to State Government across the state attracts CGST @ 6% and SGST @ 6% under clause (i) of entry no.27 of Notification No.11/2017-CT (Rate) date 28.06.2017 as amended by Notification no.31/2017-CT (Rate) dated 13.10.2017.
5. The printing and supply of periodicals and magazines to the Government Departments attracts CGST @ 6% and SGST @ 6% under clause (i) of entry no.27 of Notification No.11/2017-CT (Rate) date 28.06.2017 as amended by Notification no.31/2017-CT (Rate) dated 13.10.2017.

Order

Summary

Order dated 17/09/2019

Issue:"1. Whether the applicant is liable to pay CGST and SGST on the amount of contribution received from its members?
2. If the answer to (i) above is “yes”, whether it can avail the benefit of Notification No. 12/2017 dated 28-6-2017 read with Notification No.2/2018 dated 25-1-2018 which provide for exempting from tax, the value of supply up to an amount of Rs.7,500 per month per member ?
3. If the answer to (ii) above is “yes”, whether it is required to restrict its claim of input tax credit ?
4. Whether the applicant is liable to pay CGST/ SGST on amounts which it collects from its members for setting up a corpus fund

Crux:  1. The applicant is liable to pay CGST and SGST on the amount of contribution received from its members as their activities of amounts to taxable supply of service.
2. The benefit of exemption, under entry no. 77 of Notification no. 12/2017 -Central Tax (Rate) dated 28.06.2017 (as amended by Notification No. 02/2018 - Central Tax (Rate) dated 25.01.2018), is available to the applicant only if maintenance charges (contributions) do not exceed Rs. 7,500/ - per month per member. In case the charges exceed Rs.7,500/- per month per member, the entire amount is taxable.
3. The applicant is eligible to claim input tax credit on the inward supplies of goods and services and this is subject to the restrictions as enumerated in Section 17(2) of the CGST Act read with Rule 42 of the CGST Rules and other restrictions applicable if any.
4. The applicant is not liable to pay CGST/SGST on amounts collected from members for setting up a corpus fund.

Order

Summary

AAAR Order

Order dated 21/01/2020

Issue: (i) The applicant is liable to pay CGST and SGST on the amount of contribution received from its members as their activities amounts to taxable supply of service.
(ii) The benefit of exemption under entry No. 77 of Notification No 12/2017 (as amended by Notification No 02/2018 dt 25.01.2018), is available to the applicant only if maintenance charges (contributions) do not exceed Rs. 7500/- per month per member. In case the charges exceed Rs. 7500/- per month per member, the entire amount is Taxable.
(iii) The applicant is eligible to claim input tax credit on the inward supplies of goods and services and this is subject to the restrictions as enumerated in Section 17(2) of the CGST Act read with Rule 42 of the CGST Rules and other restrictions applicable if any.
(iv) The applicant is not liable to pay CGST/SGST on amounts which it collects from its members for setting up a corpus fund.

Crux: AAAR uphold the order passed by the Advance Ruling Authority and appeal filed by the appellant M/s. Vaishnavi Splendour Homeowners Welfair Association, stands dismissed on all accounts.

Order

Summary

Order dated 12/09/2019

Issue:"a) Whether Marketing & Pre-Sales Technical Support Services provided by the applicant will be classified as Intermediary services in terms of Section 2(13) of the Integrated Goods and Services Tax Act, 2017?
b) Whether the Post- Sales Technical Support Services provided by the applicant would be classified as Information Technology Support Services falling under HSN Code 998313?

Crux:  1. The Marketing and Pre-sales Technical Support Services provided by the applicant will be classified as Intermediary services in terms of Section 2(13) of the Integrated Goods and Services Tax Act, 2017
2. The Post-Sales Technical Support Services provided by the applicant is classified as Information Technology Support Services falling under Service Code 998313.

Order

Summary

Order dated 26/09/2019

Issue:" whether the ‘commission earned from auctioning of flowers is covered under entry no. 54(e) & (g) of Notification no.12/2017 – Central Tax (Rate) dated 28.06.2017 and entry no. 54(e) & (g) of Notification (12/2017) FD 48 CSL 2017 dated 29.06.2017?

Crux:   The commission received by the applicant for facilitating the purchase and sale of cut flowers is covered under clause (g) of the entry 54 of the Notification No. 12/2017- Central Tax (Rate) dated 28.06.2017 and hence exempted from CGST. Similarly, the services are covered under clause (g) of entry no.54 of the Notification (12/2017) No. FD 48 CSL 2017 dated 29.06.2017 and hence are exempted from tax under the Karnataka Goods and Services Tax Act, 2017.

Summary

AAAR Order

Order dated 05/02/2020

Issue: whether the ‘commission earned from auctioning of flowers is covered under entry no. 54(e) & (g) of Notification no.12/2017 – Central Tax (Rate) dated 28.06.2017 and entry no. 54(e) & (g) of Notification (12/2017) FD 48 CSL 2017 dated 29.06.2017?

Crux: AAAR set aside the advance ruling and allow the appeal filed by the Commissioner of Central Tax, Bangalore North Commissionerate. The question on which the advance ruling was sought for is answered as : The commission earned from auctioning of flowers is not eligible for exemption under entry no. 54(g) of Notification No. 12/2017 - Central Tax (Rate) dated 28.06.2017 and entry no. 54(g) of Notification (12/2017) FD 48 CSL 2017 dated 29.06.2017.

Order

Summary

Order dated 12/09/2019

Issue: "Whether the activities carried out in India by the applicant would render the applicant to qualify as an “intermediary” as defined under Section 2(13) of the IGST 2017 and consequently be subject to the levy of GST?"

Crux:  The activities carried out in India by the applicant so far as those activities mentioned in the “Pre-sale and Marketing Services Agreement” would render the applicant to qualify as an “intermediary” as defined under Section 2(13) of the Integrated Goods and Services Tax Act, 2017 and consequently be subject to the levy of GST.

Order

Summary

AAAR Order

Order dated 20/01/2020

Issue: Whether the activities carried out in India by the applicant would render the applicant to qualify as an “intermediary” as defined under Section 2(13) of the IGST 2017 and consequently be subject to the levy of GST?"

Crux: AAAR uphold the decision of AAR and dismiss the appeal filed by appellant on all counts.

Order

Summary

Order dated 20/09/2019

Issue: a) Whether the services provided by the applicant to M/s H-J Family of Companies amount to or result in a supply of services or both, within the meaning of that term?
b) If the above question is answered in the affirmative:
i. What is the classification of the services rendered by Mr. Santosh to H-J Family of Companies?
ii. Is Mr. Santosh required to be registered under the CGST Act, 2017?
iii. What is the liability of Mr. Santosh to pay tax on the services rendered by him to H-J Family of Companies?
iv. What is the time and value of the supply of services rendered by Mr. Santosh to H-J Family of Companies?

Crux:  1. The services provided by the applicant to M/s H-J Family of Companies would result in the supply of services within the meaning of that term.
2. The services provided would be classifiable under HSN 9983.11 under the description “Other professional, technical and business services”
3. The applicant is required to be registered under the CGST Act, 2017
4. The rates of tax applicable for the service provided are:-
a. In case of intra-State Supply- CGST at 9% and KGST at 9%
b. In case of inter-State supply at 18% under the IGST Act
5. The time of such supply would be determined as per the provisions of sub-section (2) of section 13 of the CGST Act, 2017 and the value of such supply would be the amount received by the applicant from the recipient of services and also includes the amounts reimbursed to the applicant by the recipient of services for the expenses incurred.

Order

Summary

AAAR Order

Order dated 18/02/2020

Issue: a) Whether the services provided by the applicant to M/s H-J Family of Companies amount to or result in a supply of services or both, within the meaning of that term?
b) If the above question is answered in the affirmative:
i. What is the classification of the services rendered by Mr. Santosh to H-J Family of Companies?
ii. Is Mr. Santosh required to be registered under the CGST Act, 2017?
iii. What is the liability of Mr. Santosh to pay tax on the services rendered by him to H-J Family of Companies?
iv. What is the time and value of the supply of services rendered by Mr. Santosh to H-J Family of Companies?

Crux: AAAR upheld the advance ruling passed by AAR and dismiss the appeal filed by appellant.

Order

Summary

Order dated 30/09/2019

Issue: 1. Whether the activity of development and sale of land attract tax under GST?
2. If the answer to the question no.1 is yes, for the purpose of taxable value, whether provision of rule 31 can be made applicable in ascertaining the value of land and supply of service?

Crux: 1. The activities as envisaged in the agreement between the applicant and the landowners amount to supply of service and is liable to be taxed under GST.
2. Rule 31 applies in the instant case and the value of the supply is equal to the total amount received by the applicant, which is equal to 25% of the market value of each plot.

Order

Summary

AAAR Order

Order dated 04/05/2020

Issue: a) Whether the activity of development and sale of land attracts tax under GST?
b) If yes, for the purpose of taxable value, whether provision of Rule 31 can be made applicable in ascertaining the value of land and supply of service?

Crux: AAAR uphold the order passed by the advance ruling authority and the appeal filed by the appellant M/s. Maarq Spaces Private Limited stands dismissed on all accounts.

Order

Summary

Order dated 30/09/2019

Issue: 1) Applicability of rate of GST on the packed food products.
2) Admissibility of input tax credit on the packed food products sold.

Crux:   1. The sale of packed items like packaged food products Which cannot be consumed as is basis and that needs further cooking operations and other packaged food products which are not processed by the applicant and sold as purchased are taxable at the appropriate rates and are not covered under the tax rate applicable to Group 99633 (HSN Code) as those relates only to services,
2. The applicant is eligible to take credit of the applicable input tax relatable to the supply of such goods.

Order

Summary

Order dated 30/09/2019

Issue: 1.Whether the activity of technical testing and analysis carried out by KBRPL is liable to GST under the provisions of CGST Act, 2017 read with Karnataka GST Act, 2017, the rules framed thereunder and Notifications issued from time to time.
2. Where the material for testing and analysis is sent from outside India to KBRPL and on which KBRPL carries out testing and analysis and issues certificate based thereon to the person not residing in India, whether it can be said that there is no supply by KBRPL involved in terms of Section 7 CGST Act, 2017 read with Karnataka GST Act, 2017, the rules framed thereunder and notifications issued from time to time.
3.Where the customer providing the material is not residing in India and sends material from outside India to KBRPL in India, for carrying out testing and analysis and issuance of certificate thereafter, such an activity if held to be supply in terms of Section 7 of the CGST Act, 2017 read with Karnataka GST  Act, 2017, the rules framed thereunder and notifications issued from time to time, and where payments are received in convertible foreign currency, whether Invoice in terms of section 31 of the CGST Act; 2017 read with Karnataka GST Act, 2017, the rules framed there under and notifications issued from time to time, can be issued without charging GST therein.
4.Whether the services of technical testing and analysis provided by KBRPL to customers located outside India can be regarded as export of services as per section 2(6) of the IGST Act, 2017?

Crux:   1. The activity of technical testing and analysis carried out by the applicant is a “supply of services” under the GST Acts.
2. The activity of technical testing and analysis carried out by the applicant for consideration and supplied to a person outside India is also a “supply of service” under the GST Act.
3. The applicant is required to issue a tax invoice for the supply of service made even when the recipient of such supply is a person located outside India and the consideration is received in convertible foreign exchange.
4. No advance ruling is given determining whether the transaction is an “export of services” as the same involves the determination of place of Supply.

Order

Summary

Order dated 30/09/2019

Issue: “Whether input GST credit can be availed by the applicant on the inputs i.e. Electrical Works, Pumps, Pumping systems and tanks, Lighting system, Physical security system and Fire Systems"?

Crux:  The input GST credit cannot be availed by the applicant on the inputs i.e. Electrical Works, Pumps, Pumping systems and tanks, Lighting system, Physical security system and Fire System as it is blocked under section 17(5) of the CGST Act 2017 and section 17(5) of the Karnataka Goods and Services Tax Act, 2017.

Order

Summary

Order dated 30/09/2019

Issue:  (1) Whether the proposed activity of setting-up of the data centre facilities as explained proposed to be undertaken by the Applicant would qualify as Works contract’ as per Section 2(119) of the Central Goods and Service Tax Act, 2017 and Section 2 (119) of the Karnataka Goods and Service Tax Act. 2017?
(2) What is the rate of GST applicable on the proposed activities?

Crux:  1. The proposed activity of setting-up of the data centre facilities as explained would qualify as ‘works contract’ as per Section 2(119) of the Central Goods and Service Tax Act, 2017 and Section 2 (119) of the Karnataka Goods and Service Tax Act, 2017

2. The rate of tax applicable is 9% CGST and 9% SGST as per Entry No. 3(ii) of Notification 11/ 2017 – Central Tax (Rate) dated June 28, 2017.

Order

Summary

Order dated 30/09/2019

Issue:1. Whether the activity of development and sale of land attract tax under GST?
2. If the answer to the question no.1 is yes, for the purpose of taxable value, whether provision of rule 31 can be made applicable in ascertaining the value of land and supply of service?

Crux:  1. The activities as envisaged in the agreement between the applicant and the landowners amount to supply of service and is liable to be taxed under GST.
2. Rule 31 applies in the instant case and the value of the supply is equal to the total amount received by the applicant, which is equal to 25% of the market value of each plot.

Order

Summary

M/S Tarun Realtors Private Limited  v/s Shri Harish Dharnia ,Addl. Commissioner of Central Tax., Dr. Ravi Prasad M.P. Joint Commissioner of Commercial Taxes.

Order dated 30/09/2019

Issue: Whether taxes paid on procurement of goods and/or services for installation of the following, hereinafter referred to as “Installations”, are regarded as blocked credits under Section 17(5) of the CGST Act, 2017?
(a) Chillers, (b) Air Handling Unit (AHU), (c) Lift, Escalators, and Travellator, (d) Water Treatment Plant (WTP), (e) Sewage Treatment Plant (STP), (f) High Speed Diesel Yard (HSD), (g) Mechanical Car Park (MLCP), (h) Indoor / Outdoor Surveillance System (CCTV), (i) D.G. Sets, Transformers, (j) Electrical wiring and fixtures (k) Public Health Engineering (PHE), Fire-fighting and water management pump system.

Crux:  The taxes paid on procurement of goods and/or services for installation of the Installations such as (a) Chillers, (b) Air Handling Unit (AHU), (c) Lift, Escalators, and Travellator, (d) Water Treatment Plant (WTP), (e) Sewage Treatment Plant (STP), (f) High Speed Diesel Yard (HSD), (g) Mechanical Car Park (MLCP), (h) Indoor / Outdoor Surveillance System (CCTV), (i) D.G.Sets, (j) Transformers, (k) Electrical wiring and fixtures (l) Public Health Engineering (PHE), Fire-fighting and water management pump system, are regarded as blocked credits under Section 17(5) of the CGST Act, 2017.

Order

Summary

AAAR Order

Order dated 06/02/2020

Issue: Whether taxes paid on procurement of goods and/or services for installation of the following, hereinafter referred to as “Installations”, are regarded as blocked credits under Section 17(5) of the CGST Act, 2017?
(a) Chillers, (b) Air Handling Unit (AHU), (c) Lift, Escalators, and Travellator, (d) Water Treatment Plant (WTP), (e) Sewage Treatment Plant (STP), (f) High Speed Diesel Yard (HSD), (g) Mechanical Car Park (MLCP), (h) Indoor / Outdoor Surveillance System (CCTV), (i) D.G. Sets, Transformers, (j) Electrical wiring and fixtures (k) Public Health Engineering (PHE), Fire-fighting and water management pump system.

Crux: AAAR uphold the order passed by the advance ruling authority and appeal filed by the appellant M/s. Tarun Realtors Pvt Limited stands dismissed on all counts.

Order

Summary

Order dated 30/09/2019

Issue: Is GST Applicable on man power services provided to Karnataka Rural Road Development Agency?

Crux: The activity of providing manpower services like Data Entry Operators, Field Engineers, Diploma Field Engineers, Senior Software Professionals, Software Engineers for IT Cell, Graduate Assistant, Office Assistant, Peon and Watchman to Karnataka Rural Road Development Agency is not covered under entry no. 3 of Notification No. 12/2017- Central Tax (Rate) dated 28.06.2017 and hence is not exempted from GST.

Order

Summary

Order dated 30/09/2019

Issue: 1. Whether the above, rates are applicable to constructions comprising entirely of construction of commercial space. If not, what is the rate of tax applicable both with ITC and without ITC?
2. In the instant case can the applicant, the service provider of construction of commercial space utilize the ITC relating to the construction activity on supply of other goods and services?
3. Can input tax paid on inputs relating to construction activity i.e. on construction of buildings / built up space be utilized against the output tax payable on letting out of the same space?
4. Is providing residential accommodation as paying guest to students outside the premises of the University / College / School campus taxable under GST? If yes, what is the rate of tax applicable?

Crux:  1. The tax rate applicable on the supply of construction service to the land owner in lieu of transfer of development rights to the promoters portion is liable to tax at 9% under CGST and 9% KGST under entry no. 3(xii) of the Notification No. 11/2017 — Central Tax (Rate) dated 28.06.2017 as amended by Notification No. 3/2017-Central Tax (Rate) dated 29.03.2019. The applicant is eligible for input tax credit on the same.

2. Since the applicant is capitalizing his portion of the building as an immovable property, the applicant is not eligible to claim input tax credit on the inputs and input services to the extent used for such construction as per section 17(5)(d) of the CGST Act, 2017.

3. Since the input tax credit is not available relating to his portion of the constructed building, the same is not available for utilization of it against the output tax payable on letting out of the same space.

4. This is not answered as the applicant has withdrawn the question.
Similar treatment has to be provided under the provisions of the Karnataka Goods and Services Tax Act also.

Order

Summary

Order dated 30/09/2019

Issue: a) Whether the Air Handling Unit is classifiable under 8414 80 90 or under 8415 90 00?
b) Whether the Ventilation Unit is classifiable under 8414 80 90 or under 8415 90 00?

Crux:1. The Air handling units which are supplied by the applicant is classified under HSN 8415 90 00.
 2. The Air Ventilators which are supplied by the applicant is classified under HSN 8414 59 10.

Order

Summary

Order dated 30/09/2019

Issue: a) Whether input GST credit can be availed by the applicant on the detachable 14mm Engineered Wood with Oak top Wooden Flooring which is movable in nature and capitalized as “furniture and fixture”, and is not capitalized as “immovable property”?
b) Whether input GST credit can be availed by the applicant on the detachable sliding and stacking glass partition which is movable in nature and capitalized as “furniture and fixture”, and is not capitalized as an immovable property?

Crux: 1. The input tax credit of GST can be availed by the applicant on the detachable 14 mm Engineered wood with Oak top wooden flooring which is movable in nature and capitalized as ‘furniture” and "fixture".

 2. The input tax credit of GST is not available on the detachable sliding and stacking glass partitions.

Order

Summary

AAAR Order

Order dated 06/03/2020

Issue: a) Whether input GST credit can be availed by the applicant on the detachable 14mm Engineered Wood with Oak top Wooden Flooring which is movable in nature and capitalized as “furniture and fixture”, and is not capitalized as “immovable property”?
b) Whether input GST credit can be availed by the applicant on the detachable sliding and stacking glass partition which is movable in nature and capitalized as “furniture and fixture”, and is not capitalized as an immovable property?

Crux: AAAR set aside the portion of the advance ruling which deals with the eligibility of input tax credit on detachable sliding and stackable glass partitions. and answered the question in appeal as Input tax credit can be availed by the appellant on the detachable sliding and stackable glass partitions which is movable in nature.

Order

Summary

M/S M.K Agro Tech Private Limited v/s Shri Harish Dharnia ,Addl. Commissioner of Central Tax., Dr. Ravi Prasad M.P. Joint Commissioner of Commercial Taxes.

Order dated 27/09/2019

Issue:  Whether under Reverse Charge Mechanism, IGST should be paid by the importer on ocean freight on the case of CIF basis contract?

Crux:  IGST should be paid by the importer on ocean freight in case of CIF basis contract, under Reverse Charge.

Order

Summary

Sri Roopesh Kumar v/s Shri Harish Dharnia ,Addl. Commissioner of Central Tax., Dr. Ravi Prasad M.P. Joint Commissioner of Commercial Taxes.

Order dated 27/09/2019

Issue: a) Whether the applicant has to charge GST for the service (providing Hydraulic excavator and ten wheeler tippers to transport RDF (inerts) from KCDC processing plant Bommanahalli to Bellahalli Land fill site near Yelahanka) done to government organization? If so at what rate?
b) Whether this service (providing Hydraulic excavator and ten wheeler tippers to transport RDF (inerts) from KCDC processing plant Bommanahalli to Bellahalli Land fill site near Yelahanka) done to government organizations is exempted by way of Entry No.3 of the Notification No 12/2017 which provides exemption to Pure service (Excluding works contract service or other composite supplies involving supply of any goods) provided to the Central Government, State Government authority or Union territory or local authority or a Government Entity by way of any activity in relation to any function entrusted to a Panchayat under article 243 G of the constitution or in relation to any function entrusted to a Municipality under article 243 W of the Constitution?
c) Whether activity done by us is in relation to function entrusted to a municipality under 243W. Whether any exemption is available under GST in respect of service rendered by us to KRIDL (which is a Government Organization)?
d) Whether exemption is available under GST in respect of service rendered by us to KRIDL (Which is a Government Organization)?

Crux:  The activity undertaken by the applicant is exempt from payment of taxes as per entry number 3 of Notification No. 12/2017- Central Tax (Rate) dated 28.06.2017 i.e of "Pure services" as amended by Notification No. 2/2018 – Central Tax (Rate) dated 25.01.2018 with effect from 25.01.2018.

Order

Summary

M/S Quatro Rail Tech Solutions Limited v/s Shri Harish Dharnia ,Addl. Commissioner of Central Tax., Dr. Ravi Prasad M.P. Joint Commissioner of Commercial Taxes.

Order dated 27/09/2019

Issue: 1) What is the rate of tax for the sub-contractors who executes the works contract work like supply of goods or services or both pertaining to Railways based on the order received from the main contractor who got the work order directly from Railways.
2) Does the rate of tax of 6% as per serial no.3(v) of Notification No.11/2017- Central Tax dated 28.06.2017 as amended, applicable to sub-contractors or not?
3) If the answer to the question no.2 is yes, then from which date it is applicable?

Crux:  1 & 2. The contract work of the applicant to the main contractor, who is executing, the works contract to M/s DRCCIL, is liable to tax at 6% under CGST Act and at 6% under MOST Act or 12% under IGST Act, 2017. The relevant entry is entry no. 3(v) of Notification No.11/2017- Central Tax (Rate) dated 28.06.2017 as amended by Notification No.20/2017 – Central Tax (Rate) dated 22.08.2017.

3. The date of application of the above rate of tax of 12% is from 22.08.2017.

Order

Summary

M/S Brightstone Developers Private Limited v/s Shri Harish Dharnia ,Addl. Commissioner of Central Tax., Dr. Ravi Prasad M.P. Joint Commissioner of Commercial Taxes

Order dated 30/09/2019

Issue: 1) Whether the supply of turn-key Engineering, Procurement & Construction (EPC) Contract for construction of solar power plant wherein both goods and services are supplied can be construed to be a composite supply in terms of Section 2(30) of CGST Act, 2017?
2) Whether the supply of ‘Solar Power Generating System’ is taxable at 5% GST?

Crux:  1. The supply of turnkey Engineering, Procurement and Construction (EPC) Contract for construction of solar power plant wherein both goods and services are supplied can be construed to be a composite Supply in terms of Section 2(30) of CGST Act, 2017.

2. The contract of the applicant is covered under works contract under section 2(119) of the CGST Act and by item (ii) of entry no. 3 of the Notification No. 11/2019 – Central Tax (Rate) dated 28.06.2017 up to 31.12.2018. From 01.01.2019, the same is taxable on the values worked out separately for goods and services under both entry no. 38 of Notification No.11/2019 ­Central Tax (Rate) dated 28.06.2017 (as amended by Notification No. 27/2018-Central Tax (rate) dated 31.12.2018) and Entry No. 234 of Schedule I of Notification No. 1/2017-Central Tax (Rate) dated 28.06.2017 as amended by Notification No. 24/2018 — Central Tax (Rate) dated 31.12.2018, and the values must be as per the explanation provided therein.

Order

Summary

Notification No. 11/2019 Central Tax (Rate)

Order dated 27/09/2019

Issue: “whether the gamut of services collectively referred to as ‘Relocation Management Service’ provided by the applicant, would constitute as a composite supply or a mixed supply for the purpose of taxability under GST ?”

Crux:1.The services supplied by the applicant do not constitute a Composite Supply and would be a mixed supply, when the services are billed for a single price in case where the relocation related services are actually provided by them.

2. The services provided to the company as an agent are “management support services of relocation related services” which is a single service covered under SAC 9985 and is covered under entry 23(ii) of Notification No.11/2017-Central Tax (Rate) dated. 28.06.2017.

Order

Summary

AAAR Order

Order dated 09/02/2020

Issue: Whether the gamut of services collectively referred to as Relocation Management Service  provided by the applicant would constitute as a composite supply or a mixed supply for the purpose of taxability under GST?

Crux:  AAAR modify the advance ruling passed by AAR as follows:
The package of bundled services supplied by the appellant for a single price is a mixed supply in terms of Section 2(74) of the CGST Act, 2017 and the taxability of the mixed supply will be determined in terms of Section 8 (b) of the said Act.

The  Gujarat ˜a la carte Gujarat  services (five individual services) provided by the appellant, relating to employee relocation is neither a composite supply nor a mixed supply.

The observations made by the Lower Authority in the impugned order to the effect that the service provided by the appellant is covered under the definition of  Gujarat œintermediary Gujarat  is expunged as being beyond the mandate of the Authority in the instant case.

We make it clear that the above ruling is based on and limited to the activity carried out by the appellant under the relocation management service agreement (RSA) and the Statement of work (SOW) referred in this order.

The appeal filed by M/s Cartus India Pvt Ltd is disposed off on the above terms.

Order

Summary

M/S Datacon Techhologies v/s Shri Harish Dharnia ,Addl. Commissioner of Central Tax., Dr. Ravi Prasad M.P.Joint Commissioner of Commercial Taxes

Order dated 27/09/2019

Issue: Whether the activity of offset printing of Answer booklets, centre pinning and hand numbering, carried out by the applicant is to be treated as supply of goods or supply of service and the applicable rate of tax"?

Crux:  The supply of printed, centre pinned and hand numbered answer booklet to the Karnataka State Secondary Education Board constitutes supply of goods falling under the Heading 4802 of entry 112 of the Schedule II to the Notification 01/2017 central tax (Rate) dated 28/06/2017 and taxable at 6% CGST and 6% SGST.

Order

Summary

Notification No. 01/2017 Central Tax (Rate)

M/S Tata Coffee Limited v/s Shri Harish Dharnia ,Addl. Commissioner of Central Tax., Dr. Ravi Prasad M.P. Joint Commissioner of Commercial Taxes.

Order dated 27/09/2019

Issue: 1) Whether the legally binding and prescribed activity of depositing the timber / wood by the applicant with the Government Timber Depot for disposal as per the provision of Section 104 of the Karnataka Forest Act will constitute a “supply” and therefore subject to payment of GST for keeping the goods at the custody of the auctioneer i.e. Government Timber Depot?
2) If GST applicable on depositing timber with the auctioneer, on what value GST is chargeable in the invoice by the applicant?
3) Whether the payment of GST on the full amount by the auctioneer i.e. Government Depot, will be the complete discharge of liability in the hands of the applicant and hence the applicant is not required to charge any GST while depositing as well as receiving the net consideration from the auctioneer?
4) If the transaction is supply in the hands of the applicant, what is the time of supply of timber?
5) If the transaction is considered as “supply* in the hands of the applicant when consideration is not fixed / known at the time of supply, when would be the time of supply and when the applicant has to remit the tax on what value? This is especially where the Government Timber Depot decides the time of auction and the applicant does not have any control on this process.
6) Should GST be paid by the applicant on supervision charges collected by the Government Timber Depot under Reverse Charge as per the SI.No.5 of Notification No.13/2017?

Crux:  1. The transaction of depositing timber with the Government Timber depot for disposal would amount to “supply” within the meaning assigned to it under the GST Act and GST is chargeable on the Value of such supply.

2. The value of supply of timber to the Depot by the applicant shall be the open market value or the value as may be determined under Rule 30 or Rule 31 in that order.

3. There is no provision in the GST Act for shifting of the tax liability and considering that as a deemed discharge of liability. There are two supplies of timber involved in the chain of transactions, one when the timber is handed over to the depot by the applicant and the second when the timber is sold by the depot. Both are independent supplies in the eyes of the GST Act and hence the tax needs to be discharged at both stages.

4. The time of supply is the time of removal of timber/ wood by the applicant for supply to the depot.

5. It is pertinent to note that the time of second supply involving timber i.e. by the depot (agent) to the third party does not have any impact on the value or time of supply of the first supply, i.e. supply of timber/ wood by the applicant to the depot for sale.

6. The activity of providing supervision services is not covered under the exceptions in entry 5 of Notification No.13/2017- Central Tax (Rate) dated 28.06.2017, the same is liable to tax under reverse charge and this is subject to the condition that the Government Timber Depots are Government Departments, the applicant is liable pay tax on the receipt of supervision services. In case the Government Timber Depots are not Government Department then the transaction would not be covered under Notification No.13/2017- Central Tax (Rate) dated 28.06.2017 and such reverse charge mechanism shall not be applicable and the Government Timber Depot shall collect the GST and issue invoice to the applicant.

Order

Summary

AAAR Order

Order dated 04/05/2020

Issue: (i) Whether the legally binding and prescribed activity of depositing the timber / wood by the applicant with the Government Timber Depot for disposal as per the provision of Section 104 of the Karnataka Forest Act will constitute a supply� and therefore subject to payment of GST for keeping the goods at the custody of the auctioneer i.e. Government Timber Depot?
(ii) If GST applicable on depositing timber with the auctioneer, on what value GST is chargeable in the invoice by the applicant?
(iii) Whether the payment of GST on the full amount by the auctioneer i.e. Government Depot, will be the complete discharge of liability in the hands of the applicant and hence the applicant is not required to charge any GST while depositing as well as receiving the net consideration from the auctioneer?
(iv) If the transaction is supply in the hands of the applicant, what is the time of supply of timber?
(v) If the transaction is considered as supply" in the hands of the applicant when consideration is not fixed / known at the time of supply, when would be the time of supply and when the applicant has to remit the tax on what value? This is especially where the Government Timber Depot decides the time of auction and the applicant does not have any control on this process.
(vi) Should GST be paid by the applicant on supervision charges collected by the Government Timber Depot under Reverse Charge as per the SI.No.5 of Notification No.13/2017?

Crux:  AAAR uphold the advance ruling and dismiss the appeal filed by M/s Tata coffee limited, on all counts.

Order

Summary

M/S Sagas Autotec Pvt. Ltd. v/s Shri Harish Dharnia ,Addl. Commissioner of Central Tax., Dr. Ravi Prasad M.P. Joint Commissioner of Commercial Taxes.

Order dated 26/09/2019

Issue: Classification of LPG Conversion Kit for Automobiles".

Crux:  The LPG Conversion Kits are classifiable under HSN 8409 99 90 and the same are covered under serial no.116 of Schedule IV to. the Notification No. 01/2017 ­Central Tax (Rate) dated 28.06.2017 and hence liable to tax at 14% under the CGST Act, 2017. Similarly the same are liable to tax at 14% under the Karnataka Goods and Services Tax Act, 2017 in entry no. 116 of Schedule IV of Notification (01/2017) No. FD 48 CSL 2017 dated 29.06.2017.

Order

Summary

M/S Cadmaxx Solutions Education Trust v/s Shri Harish Dharnia ,Addl. Commissioner of Central Tax., Dr. Ravi Prasad M.P. Joint Commissioner of Commercial Taxes.

Order dated 25/09/2019

Issue:1. Under this scheme the resource provided by trust, these called as “On Job Trainee”. It will be paid monthly stipend amount determined by the client and Trust. The Trust is expected to collect stipend amount from the client and transfer the entire amount to the trainee – Does this stipend reimbursement attracts GST or not?
2. The Trust is expected to keep training the trainee for acquainting the skills and enhancement of employability. The Trust will charge a predetermined training charges – Does this attract GST or not?
3. The Trust also obtains Group Health Insurance Policy and Workman Compensation Policy for the trainee’s deployed at client place. Trust recovers this amount on monthly basis, the rate which is determined based on the premium amount. – Does this attract GST or not?
4. The Trust is also obliged to recover the expenditure, then against on boarding the trainee – Does this attract GST or not?
5. If client finds our trainee suitable for absorption of the roles of the Company, trust would like to charge certain amount on-Rolls conversion charges – Does this attracts GST or not?

Crux:  1. The reimbursement of the stipend paid to the trainees does not attract tax under the GST Acts.

2. The additional training to the trainees for which the training fees is paid by the trainer is taxable under entry no. 35 of Notification No.11/2017 – Central Tax (Rate) dated 28.06.2017 and liable to tax at the rate 9% under CGST Act and similarly taxable at 9% under the Karnataka Goods and Services Tax Act, 2017 under entry no. 35 of Notification (12/2017) No. FD 48 CSL 2017 dated 29.06.2017..

3. The reimbursement of Group Insurance and Workmen Compensation premium by the trainer company to the applicant is not liable to tax under the GST Acts.

4. The Sourcing fees collected by the applicant from the trainer companies is liable to tax at 9% CGST under entry no. 23(ii) of the Notification No.11/2017- Central Tax (Rate) dated 28.06.2017. Similarly it is taxable at 9% under the Karnataka Goods and Services Tax Act, 2017 under entry no.23(ii) of Notification (12/2017) No. FD 48 CSL 2017 dated 29.06.2017.

5. The “On roll Conversion charges” collected by the applicant from the trainer companies is liable to tax at 9% CGST under entry no. 23(ii) of the Notification No.11/2017- Central Tax (Rate) dated 28.06.2017. Similarly it is taxable at 9% under the Karnataka Goods and Services Tax Act, 2017 under entry no. 23(ii) of Notification (12/2017) No. FD 48 CSL 2017 dated 29.06.2017.

Order

Summary

Order dated 24/09/2019

Issue: whether the supply of services in the nature of subscription to the J-Gate by the educational institutions is eligible for exemption from GST under Notification no.2/2018- Central Tax (Rate)"?

Crux: The providing of access to the online content by the applicant to their users is covered under SAC 998431 and liable to tax at 9% CGST under the entry no.22 of Notification no. 11/2017- Central Tax (Rate) dated 28.06.2017 and at 9% under the KGST Act.

Order

Summary

AAAR Order

Order dated 10/02/2020

Issue: Whether the supply of services in the nature of subscription to the J-Gate by the educational institutions is eligible for exemption from GST under Notification No.02/2018- Central Tax (Rate)?

Crux:  The advance ruling is set aside and the appeal filed by M/s Informatics Publishing Ltd. is allowed. The question on which the ruling has been sought for is answered as below:
The supply of services in the nature of subscription to the J-Gate by the educational institutions is eligible for exemption from GST under sub-item (v) of item (b) of serial no. 66 of Notification No.12/2017- Central Tax (Rate) dated 28.06.2017 as amended by Notification No.02/2018- Central Tax (Rate) dated 25.01.2018

Order

Summary

Notification No. 11/2017 Central Tax (Rate)

Notification No. 02/2018 Central Tax (Rate)

Order dated 23/09/2019

Issue: Whether the input tax credit is available when the online educational journals and periodicals are supplied to the Educational Institutions other than to pre'school and higher secondary school or equivalent, which is exempt by virtue of Notification No. 2/2018 ' Central Tax (Rate) dated 25.01.2018'"

Crux: The providing of access to the online content by the applicant to his users is covered under SAC 998431 and is liable to tax at 9% CGST under the entry no.22 of Notification No. 11/2017- Central Tax (Rate) dated 28.06.2017 and at 9% under the KGST Act as it is covered by entry no. 22 of Notification (11/2017) No. FD 48 CSL 2017 dated 28.06.2017. Since the transaction is not exempt, there is no restriction on input tax credit claims as per Section 17(1) or 17(2) of the CGST Act / SGST Act / IGST Act.

Order

Summary

Notification No. 11/2017 Central Tax (Rate)

Notification No. 02/2018 Central Tax (Rate)

M/S Chrochemie Laboratory Pvt. Ltd. v/s Shri Harish Dharnia ,Addl. Commissioner of Central Tax., Dr. Ravi Prasad M.P.Joint Commissioner of Commercial Taxes .

Order dated 23/09/2019

Issue: "Whether Entry No. 80 in Schedule II to the Notification No.1/2017- Integrated Tax (Rate) dated 28.06.2017 (as amended) is applicable for import as well as supply of “Prepared Laboratory Reagents / Pharmaceutical Reference Standards (PRS)” attracting a levy of Integrated Tax at the rate of 12% or Entry No.453 to Schedule III attracting a levy of Integrated Tax at the rate of 18%?"

Crux:  The Prepared Laboratory Reagents or Pharmaceutical Reference standards (HSN 3822 00 90) which are not diagnostic reagents are not covered under Entry No.80 of Schedule II of Notification No.1/2017 – Integrated Tax (Rate) dated 28.06.2017 and is covered under entry no.453 of Schedule III of Notification No. 1/2017 -Integrated Tax (Rate) dated 28.06.2017 and attracts IGST at 18%.

Order

Summary

AAAR Order

Order dated 14/01/2020

Issue: Whether the Pharmaceutical Reference Standards (Prepared Laboratory Reagents) imported and supplied by the applicant and classified under Tariff Item 3822 00 90 of the Customs Tariff Act, 1975 is covered under Entry No. 80 of Schedule II to Notification No 1/2017- Integrated Tax (Rate) dated 28th June 2017 attracting a levy of Integrated Tax at the rate of 12%

Crux: AAAR set aside the Advance Ruling and allow the appeal filed by M/s Chromachemie Laboratory Pvt Ltd.

Order

Summary

Notification No. 11/2019 Central Tax (Rate)

M/S Spring Nature Customer Service Centre v/s Shri Harish Dharnia ,Addl. Commissioner of Central Tax., Dr. Ravi Prasad M.P. Joint Commissioner of Commercial Taxes.

Order dated 23/09/2019

Issue:1) Whether the applicant is required to charge GST on supply of OIDAR services to “only” unregistered persons in India in view of compulsory or mandatory registration and return filing requirement as per section 24(xi) of CGST Act, Rule 64 of CGST Rules and GST Flyer issued by Directorate General of Taxpayer Services, CBIC?
2) If response to the above is ‘No’, whether the applicant is required to charge GST on supply of OIDAR services to Government, Local Authority, Governmental Authority and an individual irrespective of their GST registration status?
3) Whether the purpose for which OIDAR services are to be used by a recipient in India shall also determine whether GST has to be charged by the applicant or not irrespective of the category of recipient? In other words, if any service recipient is using applicant’s OIDAR services for commerce, industry or any other business or profession in India, the applicant will not be required to charge GST.
4) If response to 3 above is in affirmative, how should applicant determine that its OIDAR services shall be used by the recipient for any purpose other than commerce, industry or any other business or profession, located in India? As the majority of content in books, journals, etc. supplied by the applicant is used / capable of use by way of reference by professional end-users, i.e. scientists, doctors, engineers, researchers, academicians, etc. can it be taken to imply that applicant’s OIDAR services are used by recipients in India for purposes of commerce, industry, business or profession?
5) In case the response to 3 above is in affirmative, whether purpose is required to be determined in case of Government, local authority, Governmental authority and an individual?
6) Whether it is adequate for the applicant to obtain written confirmation from recipient of its OIDAR services in order to:
a. Determine their respective category in terms of section 2(16) of IGST Act, i.e. whether the customer is covered in the category of Government, Local Authority, Governmental Authority, etc.
b. Accept recipient’s claim to exemption under GST Law, eg. exemption allowed to eligible educational institutions from GST on procurement of electronic journals/ periodicals in terms of Notification No.2/ 2018- Central Tax (Rate)/

Crux:  1.The applicant has to charge GST on the supplies of OIDAR services made to unregistered persons in taxable territory for the purposes other than commerce, industry, business or profession.
2. The applicant is not required to charge GST on the OIDAR services made to Government, Local Authority, Governmental Authority and an individual, if they are registered persons.
3. The applicant is not required to charge GST on the OIDAR supplies made to a person in the taxable territory who receives the same for the purpose of commerce, industry or any other business or profession.
4. This question is not applicable as the answer to 3 is not affirmative.
5. This question is not applicable as the answer to 3 is not affirmative.
6. The burden of proving that the OIDAR services received by an unregistered person were for purposes other than commerce, industry or any other business or profession lies with the applicant.

Order

Summary

Order dated 21/09/2019

Issue: 1) Whether the supply of ice creams, chocolates, ice cream cakes, and pizza cakes in an IBACO outlet can be classified as a composite supply defined under section 2(30) of the CGST Act, 2017 and section 2(30) of the KGST Act, 2017, wherein the principal supply is the supply of goods namely the ice cream and other products while the services supplied namely the air conditioned place, place to sit, the service of mixing various ice creams being naturally bundled in the ordinary course of business?
2) Whether the said supply will be covered under serial no. 6(b) of schedule II of CGST Act and serial no. 6(b) of Schedule II of Karnataka GST Act? Serial no.6(b) deems the following composite supply as supply of service;
3) Whether the said supply will be classified under chapter “9963” and chargeable to 5% GST rate in accordance with serial no. (ii) of Notification No. 46/2017 dated 14.11.2017 – Central Tax (Rate) read with serial no. 7(iv) of Notification No.11/2017 dated 28.06.2017 and similar notification under KGST Act?

Crux:  1. The ice creams, chocolates, ice cream cakes and pizza cakes made as per the orders of the customers and served in IBACO outlet qualifies as composite supply under section 2(30) of the CGST Act and section 2(30) of the Karnataka Goods and Services Tax Act, 2017.

2. The said composite supply shall be deemed to be a supply of service as per the entry 6(b) of Schedule II to the CGST Act and entry 6(b) of Schedule II to the KGST Act.

3. The above supplies are classified under chapter “9963” and chargeable to tax at a rate of 2.5% subject to the conditions under CGST Act, 2017 as per entry no. 7(i) of Notification No. 11/2017- Central Tax (Rate) dated 28.06.2017, as amended by Notification No. 46/2017 – Central Tax (Rate) dated 14.11.2017 from 14.11.2017 and at a rate of 2.5% subject to the conditions under KGST Act, 2017 as per entry no. 7(i) of Notification (11/2017) No.FD 48 CSL 2017 dated 28.06.2017 as amended by Notification (46/2017) No. FD 48 CSL 2017 dated 14.11.2017 from 14.11.2017.

Order

Summary

Order dated 21/09/2019

Issue: What is the rate of GST applicable on following types of Wood meant for pulping?
(i) Debarked Eucalyptus Wood
(ii) Debarked Acacia Wood
(iii) Casuarina Wood
(iv) Subabul Wood

Crux: The pulpwood supplied to the applicant is covered under the HSN 4403 and is liable to tax
1. At 9% under the CGST Act as per entry no.134 of Schedule III to the Notification No.01/2017 – Central Tax (Rate) dated 28.06.2017.
2. At 9% under the KGST Act as per entry no.134 of Schedule III to the Notification (01/2017) FD 48 CSL 2017 dated 29.06.2017.
3. At 18% under the IGST Act as per entry no.134 of Notification No. 01/2017 – Integrated Tax (Rate) dated 28.06.2017.

Order

Summary

Order dated 20/09/2019

Issue:  Whether the Char-Dolochar / Dolochar (waste emerged during the process of manufacturing Sponge Iron) supplied by him is classifiable under
(i) Tariff Item 2621 90 90 of Customs Tariff Act, 1975 and therefore, in view of Entry 30 of Schedule III of Notification 01/2017- Integrated MX- (Rate) dated 28 June 2017 as amended from time to time, attract a levy of 18%; or
(ii) Tariff Item 2701 20 90of Customs Tariff Act, 1975 and therefore, in view of Entry 158 of Schedule I of Notification 01/2017- Integrated Tax (Rate) dated 28 June 2017 as amended from time to time, attract a levy of 5% ?

Crux:  The Char-Dolochar/Dolochar (waste emerging during the process of manufacturing Sponge Iron) supplied by the Applicant is classifiable under Tariff Item 26190090 of Customs Tariff Act, 1975 and therefore, in view of Entry 28 of Schedule III of Notification 01/2017- Integrated Tax (Rate) dated 28 June 2017, attract tax at the rate of 18 percent IGST. The intra-State supply of the same would attract CGST at 9% Entry 28 of Schedule III of Notification 01/2017- Central Tax (Rate) dated 28 June 2017 and similarly a KGST at 9 percent.

Order

Summary

Order dated 18/09/2019

Issue: a) Whether the restriction introduced by Notification No. 3/2018 – Central tax (later substituted by Notification No.39/2018- Central Tax dated 04.09.2018 retrospectively from 23.10.2017) on claiming refund of IGST paid on export of goods by inserting Rule 96(10) is applicable only on such export of goods for which corresponding inward supplies were procured at a concessional rate of 0.10% GST under Notification No. 40/2017- Central Tax (Rate), thereby holding that such restriction on IGST refund does not apply on export of goods which were procured on full payment of GST?
b) Alternatively, whether the above restriction prohibits refund of IGST paid in its entirety even on such exports where the goods have been procured on payment of full rate of GST by the person who procures only a small quantity of goods at concessional rate of 0.10% GST under Merchant Export Scheme as provided under Notification No. 40/2017- Central Tax (Rate)?

Crux:  The persons who have procured goods by utilising the benefit of Notification No. 40/2017 – Central Tax (Rate) dated 23.10.2017 are not to claim refund of the IGST paid on exports as per Rule 96(10) of the CGST Rules 2017 right from 23.10.2017, irrespective of the other transactions made by such person.

Order

Summary

Order dated 16/09/2019

Issue:1) Whether the activity undertaken by the applicant is covered under section 2(119) of the CGST Act, 2018 read with point 6 Schedule II of the CGST Act, 2017 read with the Karnataka GST Act, 2017 and the IGST Act, 2017?
2) Whether Bangalore Development Authority is a Government Authority as per the provisions of GST Law?
3) Whether the transaction covered under point 3(ii) of the Notification No.11/2017 – Central Tax (Rate) dated 28.06.2017 as amended?
4) Whether the transaction covered under point 3(ix) of the Notification No.11/ 2017 – Central Tax (Rate) dated 28.06.2017 as amended?

Crux:  1.The activity undertaken by the applicant is covered under section 2(119) of the Central Goods and Services Tax Act and is a works contract services.

2. Bangalore Development Authority is a Government Authority as per the provisions of the GST Law.

3 & 4. The said transaction is covered under entry no 3(ix) of the notification No.11/2017- Central Tax (Rate) dated 28.06.2017 as amended by Notification No.1/2018 – Central Tax (Rate) dated 25.01.2018 and liable to tax at 6% CGST and 6% KGST from 25.01.2018 and under entry no.3 (ii) of the notification no. 11/2017 – Central Tax (rate) dated 28.06.2017 and liable to tax at 9% CGST and 9% KGST for the period earlier to 25.01.2018.

Order

Summary

M/S Sukee Printpack LLP v/s Shri Harish Dharnia ,Addl. Commissioner of Central Tax., Dr. Ravi Prasad M.P. Joint Commissioner of Commercial Taxes.

Order dated 16/09/2019

Issue: "Whether the activities carried out by the applicant falls under supply of goods or supply of services and what is the rate of tax chargeable under each of the above category?

Crux:  1. In the case where applicant is supplying the paper and paper board printed with content supplied by the recipient of the goods made using physical inputs including paper belonging to the recipient and –
a. If the final printed material is a book or a journal or a periodical and if the materials on which the printing is done are provided by the customers, then the activity would be covered under entry 26(i)(d) Notification No. 11/2017 – Central Tax (Rate) dated 28.06.2017 as amended from time to time and would be liable to tax at 2.5% CGST plus 2.5% SGST.
b. If the final printed material is other than a book or a journal or a periodical but the involves the jobwork of printing of all goods falling under Chapter 48 or 49, which attract CGST @ 6 %, then the activity would be covered under entry 26(ia)(b) of Notification No. 11/2017 – Central Tax (Rate) dated 28.06.2017 as amended from time to time and is liable to tax at 6% CGST plus 6% SGST.
c. If the job work of printing made on the materials belonging to other is not covered by the above two items, then the same is liable to be covered under Entry No. 26(iii) of Notification No. 11/2017 – Central Tax (Rate) dated 28.06.2017 as amended from time to time and is liable to tax at 9% CGST plus 9% SGST.

2. In the case where the paper and paper board along with content supplied by the recipient of the goods and the applicant prints the content on the paper and paper board supplied by the recipient of the goods by using the physical inputs belonging to the printer, then
a. If the supply of services is related to the printing of newspapers, books (including Braille books), journals and periodicals, then such supplies are taxable under entry no. 27(i) of Notification No. 11/2017 – Central Tax (Rate) dated 28.06.2017 as amended from time to time and is liable to tax at 6% CGST plus 6% SGST.
b. If the supply of service is related to the printing of materials other than newspapers, books (including Braille books), journals and periodicals, then such supplies are taxable under entry no. 27(ii) of Notification No. 11/2017 – Central Tax (Rate) dated 28.06.2017 as amended from time to time and is liable to tax at 9% CGST plus 9% SGST.

Order

Summary

Order dated 16/09/2019

Issue: 1) Whether the activity undertaken by the applicant is covered under section 2(119) of the CGST Act, 2018 read with point 6 Schedule II of the CGST Act, 2017 read with the Karnataka GST Act, 2017 and the IGST Act, 2017?
2) Whether Bangalore Development Authority is a Government Authority as per the provisions of GST Law?
3) Whether the transaction covered under point 3(ii) of the Notification No.11/2017 – Central Tax (Rate) dated 28.06.2017 as amended?
4) Whether the transaction covered under point 3(iv) of the Notification No.11/2017 – Central Tax (Rate) dated 28.06.2017 as amended?
5) Whether transaction covered under point 3(v) of the Notification No.11/2017 – Central Tax (Rate) dated 28.06.2017 as amended?
6) Whether transaction covered under point 3(vi) of the Notification No.11/2017 – Central Tax (Rate) dated 28.06.2017 as amended?

Crux: 1. The activity undertaken by the applicant as enumerated in the application is covered under section 2(119) of the Central Goods and Services Tax Act and is a works contract services.

2. Yes, Bangalore Development Authority is a Government Entity as per the provisions of the GST Law.

3,4,5,6. The transaction of the applicant would be a supply of works contract services covered under clause (a) of entry no.3(vi) of the Notification No.11/2017- Central Tax (Rate) dated 28.06.2017 (as amended) and not under entry no. 3(ii) or 3(iv) or 3(v) of the said notification.

Order

Summary

M/S Manipal Technologies Ltd. v/s Shri Harish Dharnia ,Addl. Commissioner of Central Tax., Dr. Ravi Prasad M.P. Joint Commissioner of Commercial Taxes.

Order dated 16/09/2019

Issue: "Whether Pattadar Passbook cum Title Deed is a ‘Document of Title’ so as to classify under HSN 4907 or as a ‘Passbook’ under HSN 4820."?

Crux:  The Pattadar Passbook cum Title Deed is appropriately classifiable under HSN 4820.

Order

Summary

AAAR Order

Order dated 04/02/2020

Issue: Whether Pattadar Passbook cum Title Deed is a Document of Title so as to classify under HSN 4907 or as a Passbook under HSN 4820."?

Crux: AAAR uphold the order passed by authority for advance ruling and dismissed the appeal filed by the appellant.

Order

Summary

M/S Shri Keshav Cement And Infra Limited v/s Shri Harish Dharnia ,Addl. Commissioner of Central Tax., Dr. Ravi Prasad M.P. Joint Commissioner of Commercial Taxes.

Order dated 12/09/2019

Issue: 1. Whether the company is eligible to take input tax credit as `inputs/ capital goods’ or ‘input services’ of the items enlisted in Annexure-4 of this application in terms of Section 16 and 17 of the CGST/ KGST/ IGST Act? Additionally, whether the capital goods and inputs constitute plant and machinery of the applicant which are used in the business of Manufacturing Cement and hence not blocked input tax credit under section 17(5) of the CGST/ KGST/ IGST Act?
2. Whether the applicant Company is permitted to avail the entire input tax credit of the enlisted items in Annexure 4 of this application, being used towards the electric energy generated from the captive power plant and transmitted to the cement manufacturing plants which are physically located at distinct locations within the State of Karnataka in terms of section 17(1) and 17(2) of the CGST/ KGST/ IGST Act and subsequently utilize the same for payment of output tax on cement sold by the applicant?
3. Whether the applicant company is required to reverse input tax credit on the electric energy generated by it at its plant and banked with the KPTCL, GESCOM & HESCOM and which is unutilized at the end of sic months from the date of banking and is deemed to be consumed by KPTCL, GESCOM and HESCOM at the end of six months?

Crux: 1. Goods, the value of which has been capitalized in the books of account would not be considered as inputs and the applicant will not be entitled to credit of input tax in relation to such goods. From the list of the goods given in Annexure 4 to the application it cannot be inferred as to where capitalization has been done. Therefore in respect of each and every entry of the annexure specific order cannot be made. Therefore the applicant is entitled to input tax credit in respect of goods other than capital goods. In respect of the second part of the question it is Ruled that only those apparatus, equipment, and machinery which are fixed to earth by foundation or structural support alone arc entitled to qualify as plant and machinery. Therefore the goods answering to this definition alone shall be qualified to be treated as ‘plant and machinery’. In respect of other goods provisions of Section 17(5)(c) shall apply and credit of input tax shall not be available.

2. The applicant shall be entitled to the eligible input credits in entirety provided the entire production is captively consumed (emphasis supplied).

3. The applicant company is required to reverse input tax credit on the unutilized electric energy banked with KPTCL, GESCOM & HESCOM and for which the applicant receives a consideration in terms of the Wheeling and banking agreement.

Order

Summary

Order dated 12/09/2019

Issue:   "Whether the activities carried out in India by the applicant would render the applicant to qualify as an “intermediary” as defined under Section 2(13) of the Integrated Goods and Services Tax Act, 2017 (hereinafter “IGST Act, 2017”) and consequently be subject to the levy of GST?"

Crux:  The activities carried out in India by the applicant so far as those activities mentioned in the “Pre-sale and Marketing Services Agreement” would render the applicant to qualify as an “intermediary” as defined under Section 2(13) of the Integrated Goods and Services Tax Act, 2017 and consequently be subject to the levy of GST.

Order

Summary

Order dated 12/09/2019

Issue: 1). Whether, in the facts and circumstances of the case, the services rendered by the applicant under cash & carry model are in the nature of ‘services provided by canteen’ as per SI. No. 7(i) or `outdoor catering services’ as per SI. No. 7(v) of Notification No. 11/2017 – Central Tax (Rate) [as amended vide notification No. 46/2017-CT (Rate) dated 14.11.2017]?
2). If the services supplied by the applicant under cash & carry model are classifiable as ‘services provided by canteen’, whether, CGST (Central Goods and Services Tax’) & KGST be chargeable at the rate of 2.5% in terms of entry 7(i) of the notification No. 11/2017- CT (Rate) [as amended vide notification No. 46/2017-CT (Rate) dated 14.11.2017]?

Crux:   1. The supply of goods being food or any other article for human consumption or any drink provided by the applicant under cash and carry model where in the items are prepared in the same premises from where it is supplied is covered under amended entry No. 7(i) of the Notification No. 11/2017 – Central Tax dated 28.06.2017 as amended by Notification No. 13 /2018 – Central Tax (Rate) dated 26-07-2018.

2. The rate of tax applicable on the above transaction is 2.5% CGST and 2.5% SGST subject to the proviso that credit of input tax charged on goods and services used in supplying the service has not been taken.

Order

Summary

Order dated 30/09/2019

Issue: (1) Whether the applicant is liable to pay GST on the machines given to the customers under RRC/PRC models'
(2) Whether the supply of reagents along with the machine rental and services in a RRC/PRC contract is a separate supply or a mixed supply or composite supply' If considered as composite supply, what is principal supply'
(3) What is the rate of tax for the service of machine under RRC/PRC models'
(4) What is the value on which GST has to be paid in case of RRC / PRC model and what is the time of supply'
(5) Whether the applicant is eligible for the input tax credit on the purchase of machinery for use in RRC / PRC contracts'

Crux: 1. The applicant is liable to pay GST on the machines / equipments given to the customers under the PRC Model but is not liable to pay GST on the machines / equipments given to the Customers under the RRC model.
2. The supply of reagents along with the machine rental services in both RRC and PRC contract is a separate supply independent of machine rental services supplied, if any
3. The rate of tax for the supply of rental service of equipments is 9% CGST and 9% KGST.
4. The value on which GST has to be paid and the time of supply are,-
a. in case of RRC Model,-
i. for the supply of reagents ' at the time of supply of reagents on the transaction value
ii. for the supply of services in the nature of 'an act agreeing to the obligation to refrain from an act, or to tolerate an act or a situation, or to do an act' for which a consideration is received ' at the time of supply of such services on the transaction value
b. In case of PRC Model,-
i. For the supply of rental services in equipments ' at the time of supply of the equipments on the amount of non-refundable payment received or invoiced
ii. for the supply of reagents ' at the time of supply of reagents on the transaction value
iii. for the supply of services in the nature of 'an act agreeing to the obligation to refrain from an act, or to tolerate an act or a situation, or to do an act' for which a consideration is received ' at he time of supply of such services on the transaction value
5. The applicant is eligible for the input tax credit on the purchase of equipment for use in RRC / PRC contracts.

Order

Summary

Notification No. 01/2017 Central Tax (Rate)

Order dated 19/09/2019

Issue:  1. Tillers have been classified under HSN 8432 80 20 as Rotary Tillers and its parts under 8432 90. The applicant desires to know if the parts of tillers sold as spare parts can be classified under 8432 90 90.
2. What would be the appropriate HSN Code applicable to the below parts of tractors traded by them, between the Generic entry and the specific classification provided under Notification No.19/2017 ­Central Tax (Rate).

Crux: 1. Parts of the tillers are classified under HSN Code 8432 90 90 if the same are not excluded by way of Section Notes, Chapter Notes, Heading Notes or Sub-heading Notes to the Custom Tariff Act or by any other exclusions.

2. The parts, components and accessories of tractors, which are either embossed with Brand name or Drawing number or exclusive Part number of the applicant and which are exclusively manufactured for the usage as inputs in the manufacture of tractors are taxable under CGST Act at 9% in terms of notification No. 19/2017- Central tax dated 18-08-2017 subject to the condition that the same are “for tractors”. Similar notification to the effect is also issued under the Karnataka Goods and Services Tax Act, 2017 taxing the same under KGST Act at 9%. The same are liable to tax under the IGST Act at 18%.

Order

Summary

Notification No. 19/2017 Central Tax (Rate)

Order dated 25/09/2019

Issue: Whether the landscape development and maintenance of garden work for State and Central Government Departments, all government local bodies (Municipalities and Corporations) etc. and other government undertakings through contract from sub-contracts attracts GST as inward supplies from those vendors?

Crux: Even after assuming the activity of the applicant being either covered in entry no.3 or entry no.3A of the Notification No.12/2017- Central Tax (Rate) dated 28.06.2017 (as amended), the activity supply by the sub-contractor to the applicant of execution of the sub-contract work of the said activity would not be exempt as it is not covered either in entry no.3 or entry no.3A of the Notification No.12/2017- Central Tax (Rate) dated 28.06.2017 (as amended), as the applicant being the recipient of such service is not covered under the class of recipients enumerated in the said entries.

Order

Summary

AAAR Order

Order dated 04/05/2020

Issue: Whether the landscape development and maintenance of garden work for State and Central Government Departments, all government local bodies (Municipalities and Corporations) etc. and other government undertakings through contract from sub-contracts attracts GST as inward supplies from those vendors?

Crux: AAAR uphold the Advance Ruling passed by authority of advance ruling and dismiss the appeal filed by M/s The Nursery Men Co-operative Society Ltd.

Order

Summary

Notification No. 12/2017 Central Tax (Rate)

Order dated 17/09/2019

Issue: 1. Whether the rate of tax specified in entry SI No. 3(vi)(a) of notification 11/2017-CGST (Rate) as amended till date is applicable for the aforesaid service as a main contractor or the rate of tax specified in Entry SI No. 3(ix) of 11/2017 -Central Tax (Rate) as amended till date is applicable as a subcontractor?
2. If the rate of tax specified in Entry SI No. 3(vi)(a) or SI No. 3(bc) is not applicable, could you please elaborate on the reasons for non-applicability and which is the entry of the notification to determined the applicable rate?
3. If the aforesaid notification itself is not applicable, then under which service the activity has to be taxed and at what rate?

Crux: 1. The rate of tax applicable to the composite supply of works contract as defined in clause (119) of Section 2 of the Central Goods and Services Tax Act undertaken by the applicant is to be charged at 9% under the CGST Act and 9% under the KGST Act under item no. (ii) of 81. No. 3 till 28.03.2019 and thereafter at the same rate under item no. (xii) of Sl. No. 3 of Notification No. 11/2017 – Central Tax (Rate) dated 28-06-­2017.
2. & 3. The amendments to the Notification No. 11/2017 – Central Tax (Rate) dated 28.06.2017 has no effect on the taxability of the transactions of the applicant as the transactions of the applicant are covered under item no. (ii) of Serial No. 3 of the Notification No. 11/2017 – Central Tax (Rate) dated 28.06.2017 till 28.03.2019 and under item no. (xii) of Serial No. 3 of the Notification No. 11/2017 – Central Tax (Rate) dated covered under item no. (vi) of the of Serial No. 3 of the said Notification.

Order

Summary

Notification No. 11/2017 Central Tax (Rate)

Order dated 17/09/2019

Issue: 1) Whether the activity of procuring Goods and Services from third parties for upkeep and maintenance of Apartments and collecting the monies from its members to pay third party vendors is an activity liable to GST?
2) If liable to GST, whether the exemption entry no 77 of notification 12/2017 Central Tax (Rate) dated 28.06.2017 apply for maintenance charges collected from members?
3) If exemption is available, whether it is available on per member basis or per flat basis, as some members could have more than one flat?
4) Whether the exemption as per entry no 77 of Notification 12/2017 Central Tax (Rate) is a standard exemption that can be claimed irrespective of amount collected towards maintenance? i.e. if maintenance charges from a member for a month is Rs 10,000/ -, whether Rs 10,000/- liable to GST or Rs 2,500/ (Rs 10,000 – 7,500) liable to GST?
5) Whether the electricity charges paid to BESCOM (Electricity supply authority) for the power consumed towards common facilities and separately recovered from members, liable to GST?
6) Whether the Corpus/ Sinking Fund collected from members liable to GST?

Crux: 1. The activity of procuring Goods and Services from third parties for upkeep and maintenance of apartments and collecting the monies from its members to pay third parties is an activity liable to GST.
2. The exemption of Rs. 7,500/ – in terms of entry no. 77 of Notification 12/2017 – Central Tax (Rate) dated 28.06.2017, as amended, is applicable for maintenance charges collected from members.
3. The benefit of exemption up to Rs 7500/- is applicable on per flat basis, when members have more than one flat.
4. The exemption of Rs.7,500/-, in terms of entry no. 77 of Notification 12/2017 – Central Tax (Rate) dated 28.06.2017, as amended, on maintenance charges charged by a Resident Welfare Association (RWA) from. resident is available only if such charges do not exceed Rs.7,500/ – per month per member. In case the charges exceed Rs.7,500/ – per month per member, the entire amount is tax-able.
5. The electricity charges paid to BESCOM for power consumed towards common facilities and separately recovered from members is liable to GST as consideration received for the supply of maintenance services to the members.
6. The Corpus Fund or Sinking Fund collected from members is not liable to GST, as it amounts to deposits received towards future supply of services to members.

Order

Summary

Notification No. 12/2017 Central Tax (Rate)

Order dated 20/09/2019

Issue: whether the IGST at 0% is applicable for the invoices raised to the SEZ Units, even if the accommodation services were rendered outside the SEZ Zone?

Crux:The supply of accommodation services to the SEZ Units is an inter-State supply under clause (b) of sub-section (5) of section 7 of the Integrated Goods and Services Tax Act, 2017 and if it is for
(a) authorized operations, then it is covered under “zero-rated supplies” under Section 16(1) of the Integrated Goods and Services Tax Act, 2017
(b) non-authorized operations, then it would be not covered under “zero-rated supplies” under Section 16(1) of the Integrated Goods and Services Tax Act, 2017 and hence liable to tax at 18% IGST with the place of supply being the provision of such services.

Order

Summary

Circular No. 48/22/2018 – GST

Order dated 17/09/2019

Issue: Whether the activity of printing of Question Paper books is to be covered under HSN 4901 under the description “Printed books, including Braille books” in Serial Number 119 of Notification No.2/2017 Central Tax (Rate) or under the sub-clause (vi) of clause (b) in serial Number 66 with SAC 9992 of Notification No.12/2017?

Crux: 1. The activity of printing of question papers by the applicant with the content supplied by educational institutions constitutes a supply of services under Heading 9989 of the scheme of classification of services.

2. The supply of services to educational institutes, as defined from time to time, would be covered under Sl. No. 66 of Notification No.12/2017 – Central Tax (Rate) dated 28.06.2017 and corresponding Notification issued under KGST Act, 2017.

Order

Summary

Notification No. 02/2017 Central Tax (Rate)

Notification No. 12/2017 Central Tax (Rate)

Order dated 16/09/2019

Issue: 1. Development of Airport by construction of Runway, Taxi track, Apron, Isolation bay, Perimeter Road including Earth work and other allied works.
2. Up gradation of Airport to make it suitable for operation of any type of aircraft by extension of Runway, Construction of New Apron, Taxi track, Isolation bay including Link taxi, GSE area, Perimeter road, and allied works (Civil & Electrical).

Crux: 1. The rate of tax applicable to the composite supply of works contract as defined in clause (119) of Section 2 of the Central Goods and Services Tax Act undertaken by the applicant is to be charged at 9% under the CGST Act and 9% under the KGST Act or at 18% under the IGST Act.
2. The amendments to the Notification No.11/2017 – Central Tax (Rate) dated 28.06.2017 has no effect on the taxability of the transactions of the applicant as the transactions of the applicant are covered under item no. (ii) of Serial No. 3 of the Notification No.11/2017 – Central Tax (Rate) dated 28.06.2017 and are not covered under item no. (vi) of Serial No. 3 of the said Notification, as amended.

Order

Summary

Notification No. 11/2017 Central Tax (Rate)

Order dated 12/09/2019

Issue: (a) Whether the supplies made by the Applicant to Volvo Sweden is a supply of services'
(b) Whether the supplies by the Applicant amounts to export of services to Volvo Sweden and hence zero rated under GST law'

Crux: a) The applicant is providing composite supply of goods and services to the customers where in the principal supply is that of goods or services depending on the nature of individual case.

b) The transaction is an intra-State or inter-State transaction (but not export transaction) depending on the place of supply. Since this transaction is not an export of services, the transaction is not a 'Zero-rated Supply' under the IGST Act.

Order

Summary

AAAR Order

Order dated 06/02/2020

Issue: (a) Whether the supplies made by the appellant to M/s Volvo Sweden is a supply of services?
(b) Whether the supplies by the appellant amounts to export of services to M/s Volvo Sweden and hence zero rated under GST law?

Crux:  AAAR set aside the ruling passed by the advance ruling authority and answer the questions of the appellant as follows:-
a) The activities performed by the appellant with regard to repair and servicing of Volvo vehicles for Indian customers during the warranty period is an activity amounting to a composite supply of goods and service for Volvo Sweden with the principle supply being a supply of service. The recipient of the supply of service is Volvo Sweden.

b) We refrain from answering the question on whether the supply of services to Volvo Sweden amounts to export of services.

Order

Summary

Notification No. 11/2017 Central Tax (Rate) 

Order dated 19/09/2019

Issue: (a) Whether the back-end support services provided by the applicant to the Juniper Inc. under the agreement would be classified as ‘Support Services’ under the Tariff Heading 9985 of Notification 11/2017 – Central Tax (Rate) dated 28.06.2017?
b) Whether the services in question would be treated as Intermediary services or not?

Crux: 1. The back-end support services provided by the applicant to the Juniper Inc under the agreement is classifiable as “Support Services” under the Tariff Heading 9985 of Notification No.11/2017 – Central Tax (Rate) dated 28.06.2017 and more specifically under the Service Code 998599.
2. The services is not Intermediary Services.

Order

Summary

Notification No. 11/2017 Central Tax (Rate)

Order dated 17/09/2019

Issue: Applicability of  rate of tax on supply of Kapton Polyimide Film Adhesive Tape to Indian Railways for use in its railway locomotives".

Crux: Rate of tax on supply of Kapton Polyimide Film Adhesive Tape to Indian Railways for use in its railway locomotives shall be the rate of tax as applicable to goods covered under the heading 8546-Electrical Insulators of any material and therefore the rate is 18%.

Order

Summary

Notification No. 01/2017 Central Tax (Rate)

Order dated 12/09/2019

Issue: What is the Classification of Pulpwood supplied to paper mills and the rate of tax (GST) thereon?

Crux: The applicant is liable to pay CGST and SGST at the rate of 9 percent each by supply of debarked Eucalyptus, Acacia, Subabul, Casurina, Pine Pulpwood in billets of required size to paper mills vide HSN code 4403.

Order

Summary

Circular No. 80/54/2018-GST

Order dated 25/09/2019

Issue: a) Whether the expenses incurred by the Staff members on behalf of the Company exceeding Rs.5000/- a day and then reimbursed periodically are liable to tax?
b) Whether RCM is applicable on remuneration paid to the Directors?

Crux: a) The amounts paid to the employees of the applicant company as reimbursement of expenses incurred by them in the course of employment of the applicant company are not liable to tax under the provisions of the Goods and Services Tax Act, 2017 as the transaction of the services supplied by a supplier to the employee and paid by the employee is liable to tax after 30.09.2019.

b) The remuneration paid to the Director of the applicant company is liable to tax under reverse charge mechanism under sub­-section (3) of section 9 in the hands of the applicant company as it is covered under entry no. 6 of Notification No. 13/2017-Central Tax (Rate) dated 28.06.2017.

Order

Summary

Notification No. 13/2017 Central Tax (Rate)

Schedule III of CGST

Order dated 19/09/2019

Issue: What is the correct Service Accounting Code (SAC) for IT support services and IT managed services in terms of Notification No. 11/ 2017–Central Tax (Rate) dated 28th June 2017?

Crux: As per the terms of Notification No. 11/ 2017 – Central Tax (Rate) dated 28th June 2017 –
1. The IT Support services provided by the applicant are covered under the Service Code 998313.
2. The IT Managed services provided by the applicant are covered under the Service Code 998316.

Order

Summary

Notification No. 11/2017 Central Tax (Rate)

Order dated 19/09/2019

Issue: Whether the applicant is liable to pay tax for supply of services by another person through the e-commerce platform operated by the applicant?

Crux: The applicant is not liable to pay tax for the supply of services by drivers through the e-commerce platform operated by the applicant, but he is liable to pay tax on the services provided to the drivers. Further, the applicant is liable to collect tax under section 52 on the net value of taxable supplies made by the drivers through it where the consideration with respect to such supplies is to be collected by the applicant.

Order

Summary

Section 9 of CGST

Section 52 of CGST

Notification No. 17/2017 Central Tax (Rate)

Order dated 18/09/2019

Issue: “Pooja oil” can be classified under tariff item 1518 of Schedule-I (taxable at 5%.) or Schedule-II (taxable at 12%) of Notification No.01/ 2017-CT(R) dated 28.06.2017, as amended from time to time?

Crux: The “Pooja Oil”, classified under tariff heading 1518, being inedible mixture gets covered under entry number 27 of Schedule – II of the Notification No.01/2017-CT (R) dated 28.06.2017, as amended, and hence is taxable at 6% under CGST Act, 6% under KGST Act and 12% under the IGST Act.

Order

Summary

AAAR Order

Order dated 24/12/2019

Issue: Pooja oil” can be classified under tariff item 1518 of Schedule-I (taxable at 5%.) or Schedule-II (taxable at 12%) of Notification No.01/ 2017-CT(R) dated 28.06.2017, as amended from time to time?

Crux: AAAR uphold the order passed by the Advance Ruling Authority and appeal filed by the appellant M/s. S.K. Aagrotechh, stands dismissed on all counts.

Order

Summary

Notification No. 01/2017 Central Tax (Rate)

Order dated 23/09/2019

Issue: What is the applicable rate of tax for the provision of construction service rendered to NCBS?

Crux: (a) 9% CGST as it is covered under item no. (xii) of Serial No.3 of Notification No.11/2017 – Central Tax (Rate) dated 28.06.2017 as amended from time to time under the CGST Act and
(b) 9% KGST as it is covered under item no. (xii) of Serial No.3 of Notification 11/2017 No. FD 48 CSL 2017 dated 29.06.2017 as amended from time to time under the KGST Act

Order

Summary

Notification No. 11/2017 Central Tax (Rate)

Order dated 16/09/2019

Issue: 1. What is rate of tax applicable to the composite supply of works contract as defined in clause (119) of Section 2 of Central Goods and Services Act, 2017 (The Act), undertaken by the supplier (applicant) ie., whether the GST rate 18% or 12% is to be charged by the supplier?
2. If the GST rate 18% (9% CGST+ 9% SGST) as prescribed in serial no. 3, against heading no. 9954 (construction services), specified in Notification No. 11/2017-Central Tax (Rate) dated 28th June 2017, is the rate applicable to the nature of works contract undertaken by the applicant, kindly clarify the following related aspects also:
The Notification No. 12/2017-Central Tax (Rate) dated 28th June 2017 has been amended by:
i. Notification No. 20/2017-Central Tax (Rate), dated 22nd August, 2017 – cannot applicable
ii. Notification No: 31/2017-Central Tax (Rate), dated 13th October, 2017
iii. Notification No. 1/2018-Central Tax (Rate), dated 25th January, 2018
Wherein the GST rate of 12% (6% COST + 6% SGST) has been notified in respect of works contract as defined in clause (119) of Section 2 of The Act.
If so, whether it would be in order for the applicant (supplier) to charge GST at the rate of 12% (6% COST+6% SGST) or is the GST rate 18% (9% CGST+ 9% SGST) applicable to the nature of works contract undertaken by the applicant?

Crux: 1. The rate of tax applicable to the composite supply of works contract as defined in clause (119) of Section 2 of the Central Goods and Services Tax Act undertaken by the applicant is to be charged at 9% under the CGST Act and 9% under the KGST Act.
2. The amendments to the Notification No. 11/2017 – Central Tax (Rate) dated 28.06.2017 has no effect on the taxability of the transactions of the applicant as the transactions of the applicant are covered under item no. (ii) of Serial No. 3 of the Notification No. 11/2017 – Central Tax (Rate) dated 28.06.2017 and as the transactions are not covered under item no. (ix) of the of Serial No. 3 of the said Notification.

Order

Summary

Notification No. 11/2017 Central Tax (Rate)

Order dated 18/09/2019

Issue: Whether the transaction of the applicant relating to execution of the works contract pertains to energized bore wells is covered under article 243G of the Constitution, their supply is meant to the Government Entity and hence it is exempted under SI.No.3A of Notification No. 2/2018 – Central Tax (Rate) dated 25/01/2018. Thus the applicant contends that their activity / service is taxable at NIL rate or not?

Crux: The composite supply of energized bore wells to the recipients being Government entities as explained by the applicant is covered under the entry no. 3A of the Notification No. 12/ 2017 – Central Tax (Rate) dated 28.06.2017 as amended by the Notification No.2 /2018 – Central Tax (Rate) dated 25.01.2018 & thereby attracts “NIL” rate of GST.

Order

Summary

Notification No. 12/2017 Central Tax (Rate)

Order dated 26/09/2019

Issue: What is the HSN Code and rate of tax payable under GST Act for the e-campus solutions supplied by the applicant?

Crux: 1. The supplies made by the applicant are covered under SAC 997329 and is liable to tax at 9% CGST under entry 17(iii) of Notification No. 11/2017- Central Tax (Rate) dated 28.06.2017 read with entry no. 453 of Schedule Ill of Notification No.1/2017 — Central Tax (Rate) dated 28.06.2017.
2. Similarly, the supplies are liable to tax at 9% under Karnataka Goods and Services Tax Act, 2019.

Order

Summary

Notification No. 11/2017 Central Tax (Rate)

Order dated 21/09/2019

Issue: I. Whether royalty payments in respect of quarrying /mining lease as per the MMDR Act read with the KMMC Rules would amount to supply of goods or service under the Central Goods and Service Tax Act, 2017 (CGST Act) and the Karnataka Goods and Service Tax Act, 2017 (KGST Act)?
II. Where it is clarified that quarrying /mining royalty is taxable under CGST Act, whether royalty payment in respect of quarrying/mining lease as per the MMDR Act read with KMMC Rules is in the nature of “Licensing services for the right to use minerals falling under the heading 9973 attracting GST at the same rate of tax as applicable on supply of like goods involving transfer of title in goods or renting of immovable property under the heading 9972 attracting GST at the rate of 18% or residual entry “other services nowhere else classified-999799?
III. Applicability of GST and reverse charge implication on contributions to DMF as per the MMDR Act read with KDMF Rules.

Crux: 1. The royalty paid in respect of Mining Lease is a part of the consideration payable for the Licensing services for right to use minerals including exploration and evaluation falling under the Head 9973.
2. The royalty paid in respect of Mining Lease is a part of the consideration payable for the Licensing services for right to use minerals including exploration and evaluation falling under the Head 9973, which is taxable at the rate applicable on supply of like goods involving transfer of title in goods up to 31.12.2018 and taxable at 9% CGST and 9% SGST from 01.01.2019, under the residual entries of Serial No.17 of the Notification No.11/2017-Central Tax dated 28.06.2017 as amended by Notification No. 27/2018 — Central Tax (Rate) dated 31-12-2018.
3. The statutory contribution made to District Mineral Foundation (DMF) as per MMDR Act, 1957 is also part of the consideration payable for the Licensing services for right to use minerals including exploration and evaluation.

Order

Summary

Notification No. 11/2017 Central Tax (Rate)

Order dated 30/09/2019

Issue: a) Whether the marketing service provided by the application is taxable under the GST provisions and if yes, what is the SAC and the applicable rate of tax?
b) Whether the services provided by the applicant to McAfee Singapore qualifies as export of services under the provisions of the IGST Act considering the fact that:
a. The applicant is located in India
b. The overseas entity is located in Singapore
c. The place of supply is outside India
d. The consideration for providing the services is received by the applicant in foreign currency; and
e. The applicant and overseas entity are two separate legal entities established under the laws of India and Singapore respectively.
c) That the services are not “intermediary” services.

Crux: 1. The services supplied by the applicant to McAfee Singapore are covered under the SAC 998599 (if not treated as Export of Services) and –
a. Under the CGST Act – are covered under the sub-entry no. (ii) of Entry No. 23 of Notification No. 11/2017 – Central Tax (Rate) dated 28-06-2017 attracting a tax of 9% under CGST Act.
b. Under the SGST Act – are covered under the sub-entry no. (ii) of Entry No. 23 of Notification (11/2017) No. FD 48 CSL 2017 dated 28-06-2017 attracting a tax of 9% under KGST Act.
c. Under the IGST Act- are covered under the sub-entry no. (ii) of Entry No. 23 of Notification No. 08/2017 – Integrated Tax (Rate) dated 28-06-2017 attracting a tax of 18% under IGST Act.
2. No advance ruling is given on this issue as the question involves the determination of place of supply which is outside the jurisdiction of this Authority.
3. The services provided by the applicant are in the nature of services supplied by an intermediary.

Order

Summary

Notification No. 11/2017 Central Tax (Rate)

Notification No. 08/2017 Integerated Tax (Rate)

Order dated 30/09/2019

Issue: Whether they, being a health care service provider, are exempted from tax or not?

Crux: The diagnostic services provided by the applicant to Hospitals and other establishments are covered under entry no. 74 of the Notification No.12/2017- Central Tax (Rate) dated 28.06.2017 and hence are exempted from CGST. Similarly, the services are also exempted under the Karnataka Goods and Services Tax Act, as it is covered under entry no.74 of Notification (12/2017) No. FD 48 CSL 2017 dated 29.06.2017.

Order

Summary

Notification No. 12/2017 Central Tax (Rate)

Order dated 27/09/2019

Issue: Whether Notification No. 45/2017-Central Tax (Rate) dated November 14th, 2017 is applicable on supply of trucks and its spare parts to Public Funded Research Institutions?

Crux:  The supply of trucks and spare parts by the applicant to Satish Dhawan Space Centre (SHAR), (SDSC SHAR) and Electronics & Radar Development Establishment (LRDE) respectively, as specified in the application, are covered under the description of goods specified in Notification No. 45/2017 — Central Tax (Rate) dated 14.11.2017 and hence are eligible for a reduced rate of tax under the CGST Act and similarly under KGST Act and IGST Acts.

Order

Summary

Notification No. 45/2017 Central Tax (Rate)

Order dated 26/09/2019

Issue: Whether the Tobacco leaves attracting tax at the rate of 5% on forward charge or whether such Tobacco leaves can be classified as Unmanufactured tobacco; tobacco refuse /other than tobacco leaves (other than bearing brand name)?

Crux:  The commodity is covered under the tariff heading 2401 10 20 and is covered by entry no. 13 of Schedule IV of Notification No. 1/2017-Central Tax (Rate) dated 28.06.2017 attracting a tax of 14% under the CGST Act and similarly attracting a tax of 14% under KGST Act.

The transactions of the applicant in question is not covered under Notification number 4/2017- Central Tax (Rate) dated 28.06.2017 and hence not liable under reverse charge mechanism.

Order

Summary

Notification No. 01/2017 Central Tax (Rate)

Order dated 24/09/2019

Issue: Whether the revenue earned through the “operation and maintenance of employee commutation vehicles and transportation services agreement” be classified under heading passenger transport services with SAC 9964 (vi) liable to tax at 5% (CGST + SGST) without input or 12% (CGST + SGST) with input credit or under rental services of transport services with SAC 9966 (i) liable to tax at 5% (CGST + SGST) without input or 12% (CGST+SGST) with input credit or any other rate?

Crux:  The services provided by the applicant to M/s Volvo Group India Pvt. Ltd., are “Passenger Transport Services” covered under Heading 9964 and this service is covered under the entry 8(vii) of Notification No.11/2017-Central Tax (Rate) dated 28.06.2017 as amended and are taxable at 9% under the CGST Act, 2017 and 9% under the KGST Act, 2017.

Order

Summary

Notification No. 11/2017 Central Tax (Rate)

Order dated 25/09/2019

Issue: Whether GST is applicable on local sale of used second hand Wind Turbine Generator (WTG) / (Wind Mill) with accessories?

Crux:  1. The Supply of Used Wind Turbine Generator (WTG) or Wind Mill with accessories is a composite supply of Wind Mills and is liable to tax at 2.5% under CGST Act, 2017 in terms of entry 234 of Schedule I of Notification No.1/2017 – Central Tax (Rate) dated 28.06.2017
2. Similarly, it is taxable at 2.5% under KGST Act, 2017.

Order

Summary

Notification No. 01/2017 Central Tax (Rate)

Order dated 17/09/2019

Issue: 1. Whether ‘Access Card’ printed and supplied by the applicant i.e. Pattabi Enterprises based on the contents provided by their customers is rightly classifiable under HSN code 4901 10 20 under the description brochures, leaflets and similar printed matter whether or not in single sheet.

2. Whether ‘Access Card’ printed and supplied by the applicant i.e., Pattabi Enterprises based on the contents provided by their customers is rightly classifiable under HSN code 4901 10 20 under the description brochures, leaflets and similar printed matter whether or not in single sheet and attracts GST rate of 5% in case of IGST and 2.5% CGST and 2.5% SGST in case of Intra State supplies. Vide Notification No. 1/2017-CT (Rate) SI. No. 201 & 1/2017-IT (Rate) Sl.No.201 dated. 28.06.2017 and SGST/UTGST Notifications.

Crux:  The supply of ‘access cards”, and similar material printed by the applicant with the contents supplied by the recipient of supply are classifiable under SAC 9989 and liable to tax under CGST at 9% , KGST at 9% and at 18% under the IGST Act.

Order

Summary

AAAR Order

Order dated 04/05/2020

Issue: (i) Whether Access Card printed and supplied by the appellant based on the contents provided by their customers is classifiable under HSN code 4901 10 20 under the description brochures, leaflets and similar printed matter whether or not in single sheet?
(ii) Whether Access card printed and supplied by the appellant based on the contents provided by their customers attracts GST rate of 5% in case of IGST and 2.5% CGST and 2.5% SGST in case of Intra state supplies vide Notification no. 1/2017-CT (Rate) Sl.No.201 & 1/2017-IT (Rate) Sl.No.201 dated 28.06.2017 and SGST/UTGST Notifications.

Crux: AAAR set aside the ruling passed by the Advance Ruling Authority and answer the questions of the appellant as follows:-
(i) The Access Card printed and supplied by the appellant based on the contents provided by their customers is a supply of goods and is rightly classifiable under HSN code 4901 10 20 under the description brochures, leaflets and similar printed matter whether or not in single sheet.
(ii) The Access card printed and supplied by the appellant attracts GST rate of 5% in case of inter-state supplies and 2.5% CGST and 2.5% SGST in case of Intra state supplies vide SI.No. 201 of Schedule I to Notification No. 1/2017-CT (Rate) & 1/2017-IT (Rate) both dated 28.06.2017.

Order

Summary

Circular No.11/11/2017-GST

Order dated 20.02.2019

Issue: Whether or not a registered person under the Goods and Services Tax Act, 2017 can claim eligible input tax credit of goods and services tax paid on input invoices of goods or services procured or availed by a registered person before its effective date of registration under GST, where such inputs are eligible input credits and for the purpose of furtherance of business?

Crux: The applicant is not eligible to claim input tax credit of the tax paid on input invoices of goods or services procured or availed by a registered person before its effective date of registration under GST.
Further, in case of inputs being goods, the applicant is only eligible to claim input tax credit of the tax paid on such goods (inputs) lying in stock on the day previous to the effective date of registration, which are intended to be used in the course or furtherance of business, subject to other conditions and restrictions prescribed in the GST Act and in Rule 40 of the CGST Rules, in case the application for registration has been filed within thirty days from the date on which the applicant became liable for registration under the Act.

Order

Summary

Section 18 of CGST

Order dated 28/09/2019

Issue: Whether the Flavored Milk is liable to be classified under HSN 0402 99 90 or under 2202 99 30 or under any other Chapter?

Crux: The commodity “Flavoured Milk” is classified under the Tariff heading 0402 99 90.

Order

Summary

AAAR Order

Order dated 11/02/2020

Issue: Whether the Flavored Milk is liable to be classified under HSN 0402 99 90 or under 2202 99 30 or under any other Chapter?

Crux: AAAR allowed the appeal of the Department and the order passed by the authority for advance ruling is declared void ab initio as it was vitiated by the process of suppression of material facts. AAAR however, do not intend to give a ruling on the issue of classification since the matter is pending in a proceeding under this Act.

Order

Summary

Order dated 16/09/2019

Issue: a. Whether accommodation service proposed to be rendered by the applicant to SEZ units are liable to CGST and SGST or IGST?
b. If the accommodation service to SEZ are covered under IGST Act, can these be treated as zero rated supplies and the invoice be raised without charging Tax after executing LUT under section 16?

Crux: 1. The accommodation service proposed to be rendered by the applicant to SEZ units are covered under the IGST as it is an inter-State supply as per section 7(5)(b) of the Integrated Goods and Services Act, 2017.
2. Since the accommodation service supplied to an SEZ are covered under IGST Act, the same can be treated as zero rated supplies and the invoice can be raised without charging Tax after executing LUT under section 16.

Order

Summary

Section 7 of IGST

Section 16 of IGST

Rule 89 of CGST ACT

Order dated 12.02.2019

Issue: (a) Whether the applicant is required to be registered under the GST Act?
(b) If the answer to the above question is affirmative, then under which section the Commission Agents are to be registered?
(c) Whether the notification No.12/2017 – Central Tax (Rate) dated 28.06.2017 as amended and Notification No.9/2017 -Integrated Tax (Rate) dated 28.06.2017 – Serial No. 54(g) issued under section 11 of the CGST Act is applicable to Commission Agents of APMC?
(d) If the answer to the above question is negative, then to whom does this Notification No.12/2017 – Central Tax (Rate) dated 28.06.2017 as amended and Notification No.9/2017 -Integrated Tax (Rate) dated 28.06.2017 – Serial No. 54(g) issued under section 11 of the CGST Act is applicable and under what circumstances the aforesaid notification is applicable?
 e) Whether the Dry Chilly is covered under the definition of agriculture produce?
(f) If the answer to the above question is negative, then what kind of produce the dry chilly is? What is the HSN Code of Dry Chilli and what is the rate of GST on Dry Chili?

Crux: 1. The applicant, being a commission agent, is required to be registered under Section 22(1) of CGST Act 2017, as they qualify to be an agent in terms of Para 3 of Schedule I to the CGST Act 2017.
2. The services provided by the applicant to the principal are covered under “services provided by a commission agent for sale or purchase of agricultural produce”, which are exempted under entry no. 54(g) of the Notification No. 12/2017 – Central Tax (Rate) dated 28.06.2017 and hence the said Notification is applicable to the Applicant, being the commission agent of APMC, Karnataka. However the supply of dry chilies to the traders under the invoice of the applicant is liable to tax as discussed in Para 6.8 supra.
3. Dry Chilies is covered under the definition of agricultural produce, in terms of definition at para 2(d) of the Notification No. 12/2017 – Central Tax (Rate) dated 28.06.2017.

Order

Summary

Notification No. 12/2017 Central Tax (Rate)

Section 22 of CGST

Order dated 12/09/2019

Issue: i. Whether the work done by the applicant is a job work or a composite supply of service and goods?
ii. What is the value of such supply?

Crux: 1. The nature of supply done by the applicant is one composite supply consisting of two supplies – one relating to the manufacturing service on the physical inputs (goods) owned by others (Service Accounting Code 9988) and the other relating to supply of non-critical components, with the former being the principal supply. Hence the entire transaction is to be treated as the supply of manufacturing service on the physical inputs (goods) owned by others (Service Accounting Code 9988) and is taxable at the rate applicable to the same at 18%.
2. The value of the goods provided by WIPL would not form the part of the value of the supply and must be excluded while valuing the supply.

Order

Summary

Circular No.38/12/2018-GST

Section 15 of CGST

Order dated 30/09/2019

Issue: Whether the rate of tax applicable is 5% on commodities such as marine propellers, rudder set, stern tube set, propeller shaft and couplings used only for the purpose of the fishing or floating vessels.

Crux: The concessional rate of 5% GST in terms of entry number 252 of Schedule I to the Notification No.01/2017-Central Tax (Rate) dated 28.06.2017 is applicable to the products marine propeller, rudder set, stern tube set, propeller shaft and MS couplings subject to the condition that the said parts form parts of goods falling under 8901, 8902, 8904, 8905, 8906 & 8907.

Order

Summary

Notification No. 01/2017 Central Tax (Rate)

Order dated 30/09/2019

Issue:  a) Whether the volume discount received on purchases is liable for GST? If yes, under which HSN/SAC?

b) Whether volume discount received on retail (on sales) is liable for GST? If yes, under which HSN /SAC?

c) Whether the Company has to issue taxable invoice to this effect?

Crux: 1. The Volume Discount received on purchases in the form of credit note without any adjustment of GST is not liable for GST.

2. The Volume Discount received on Retail (on sales) in the form of credit note without any adjustment of GST is not liable for GST.

3. Since the amount received in the form of credit note is actually a discount and not a supply by the applicant to the authorized supplier, the applicant need not issue tax invoice for this transaction.

Order

Summary

Section 15 of CGST

Order dated 24/09/2019

Issue: What is rate of GST on Live standing trees?

Crux: The transaction of the applicant removing the rough wood after cutting the trees and appropriating the wood logs under contract is covered under entry no. 134 of Schedule III of the Notification No: 1/2017- Central Tax (Rate) dated 28/06/2017 and hence chargeable to tax @ 9%. Similarly the same is taxable under KGST Act at 9%.

Order

Summary

Notification No. 01/2017 Central Tax (Rate)

Order dated 30/09/2019

Issue: Is it liable to pay GST on Total Storage charges or is it liable to pay GST on taxable storage food commodities like Palm Oil, etc.

Crux: The services provided by the Central Warehousing Corporation to the applicant are covered under renting of commercial space in immovable property and not storage service of goods. The said service is covered under SAC 997212 81 is liable to a CGST of 9% under entry no.16 of Notification No.11/2017- Central Tax (Rate) dated 28.06.2017. The said service is also liable to a tax of 9% under the Karnataka Goods and Services Tax Act, 2017 under entry no. 16 of Notification (11/2017) No. FD 48 CSL 2017 dated 28.06.2017.

Order

Summary

AAAR Order

Order dated 28/02/2020

Issue: whether GST is payable on the Storage charges? Is GST liable to be paid on the entire amount paid as consideration for storage charges or is GST liable to be paid only on the storage of taxable food commodities like palm oil, etc?

Crux: AAAR uphold the advance ruling passed by AAR and dismiss the appeal filed by M/s Karnataka Food & Civil Supplies Corporation.

Order

Summary

Notification No. 11/2017 Central Tax (Rate)

Order dated 25/09/2019

Issue: What is the rate of tax applicable under GST on Areca Palm Leaf Plates?

Crux: The Areca Leaf plates made out of pericarnium of areca leaves are liable to tax at 2.5% from 22.09.2017 under the CGST Act as per entry no. 198A of Schedule I of Notification No. 01/2017 – Central Tax (Rate) dated 28.06.2017 as amended by Notification No.27/2017 – Central Tax (Rate) dated 22.09.2017. Similarly, it also attracts a tax of 2.5% under the Karnataka Goods and Services Tax Act, 2017.

Order

Summary

Notification No. 01/2017 Central Tax (Rate)

Order dated 30/09/2019

Issue: Does the activity of collecting exam fee (charged by any university or institution) from the students and remitting to that particular university or Institution without any value addition to it, amount to taxable service?

Crux: The activity of collecting exam fee (charged by any university or institution) from students and remitting the same to that particular university or institution without any value addition to it is a service as a pure agent and hence the value is excluded from the taxable value of the applicant as per Rule 33 of the Central GST Rules / Karnataka GST Rules.

Order

Summary

Rule 33 of CGST ACT

Order dated 12/09/2019

Issue: What is the GST rate applicable for sub-contract (works contract) for construction of independent residential units for weaker sections of society under “Pradhan Mantri Awas Yojana?"

Crux: The sub-contract of construction of independent houses by the applicant under the main contract of construction of houses pertaining to the Pradhan Mantri Awas Yojana is covered under sub-item (c) of item (iv) of serial number 3 of Notification No. 11/2017 – Central Tax (Rate) dated 28.06.2017 as amended by Notification No. 1/2018 ­Central Tax (Rate) dated 25.01.2018 and is liable to CGST at 6%. Similarly, the same is also liable to KGST at 6% under the Karnataka Goods and Services Tax Act, 2017.

Order

Summary

Notification No. 11/2017 Central Tax (Rate)

Order dated 12/09/2019

Issue: Whether the subsidy received from the state government would form part of consideration under section 2(31) of the CGST Act?"

Crux: The subsidy amount received from the Government of Karnataka for the supply of service of food to the ultimate beneficiaries (consumers) in Indira Canteens by the applicant is excluded from the definition of consideration and would not form the part of the turnover on which tax is liable. The consideration collected from the beneficiaries is liable to tax after deducting the tax fraction as the price collected is inclusive of tax.

Order

Summary
 

Section 2 of CGST

Order dated 12/09/2019

Issue: Whether KMF is liable to deduct GST TDS under section 51 of CGST Act on the payments made to suppliers

Crux: The applicant is not liable to deduct tax at source as per provisions of section 51 of CGST ACT towards payments made to suppliers of taxable goods or services or both, as they are not covered under any of the clauses of Section 51(1) of the CGST / KGST Act 2017.

Order

Summary
 

Section 51 of CGST

Order dated 12/09/2019

Issue: Whether the applicant is eligible to claim the GST Input tax credit on the items purchased for furtherance of business?

Crux: The applicant is not eligible to avail input tax credit on the inward supplies of goods and services which are attributable to the incentives provided in the form of gifts of goods and services to the painters and dealers and other persons under the CGST / SGST / IGST Act.

Order

Summary
 

Circular No 92/11/2019-GST

Section 17 of CGST

Order dated 12/09/2019

Issue:  Whether Classification of the goods manufactured by the dealer “Agriculture Tree Climbing Apparatus-Unipole Manually operated” - Principal raw material being Aluminum

Crux: “Agriculture Tree Climbing Apparatus-Unipole Manually operated Aluminum ladder” is covered under Tariff Heading 8201 and is covered under Entry No.137 of Notification No.12/2017 – Central Tax (Rate) dated 28.06.2017 and hence is exempted.

Order

Summary
 

Notification No. 12/2017 Central Tax (Rate)

Order dated 26/08/2019

Issue:  Whether Leasing of Satellite Transponder which is covered under SAC Code 997319 be charged at 5% GST as per HSN Code 8803-Parts Goods of Heading 8802 (Satellites)?

Crux: The service of Leasing of Satellite Transponders, covered under SAC 9973 19, falls under the Entry No.17 (viii) of Notification No. 8/2017-Integrated Tax (Rate) dated 28th June 2017, as amended, and is taxable to GST at the rate of 5% IGST (i.e. 2.5% of CGST and 2.5% of KGST), as applicable on the supply of like goods (transponder – part of communication satellite) involving the transfer of title in goods, covered under 8803 90 00, in terms of Entry no. 245 of the Schedule I of the Notification No. 1/2017 – Integrated Tax (Rate) dated 28th June, 2017, as amended.

Order

Summary
 

Notification No. 01/2017 Integerated Tax (Rate)

Notification No. 08/2017 Integerated Tax (Rate)

M/s Deputy Conservator of Forests v/s Sri. Harish Dharnia, Additional Commissioner of Central Tax, and Dr. Ravi Prasad M.P. Joint Commissioner of Commercial Taxes

Order dated 26/08/2019

Issue:  a) Is it legally correct to infer that the service of “logging” and its components described before do not attract any SGST under the CGST Act, 2017? If not, what is the correct position by law?
b) In case the trees have grown from “plants” not planted by the Karnataka Forest Department, but that which grew by natural regeneration but were nurtured, managed and protected by the Karnataka Forest Department, does the same nil rate of SGST and CGST apply to them too? If not, what would be the rate?
c) In case of sale of forest produce or any other goods belonging to Karnataka Forest Department, where the buyer is registered or is based in and transports the goods to outside the State of Karnataka, what should be charged under the CGST Act, 2017, (A) SGST and CGST, or (B) IGST?
d) In case of sale of forest produce or any other goods belonging to Karnataka Forest Department, where the buyer is registered or is based outside the State of Karnataka, but uses the goods within the State of Karnataka, what should be charged under the CGST Act, 2017? (A) SGST and CGST, or (B) IGST?

Crux: a to d. The operations of “logging” as described in the application would attract tax under the Goods and Services Tax Acts and it is independent of the trees, whether planted by the Forest Department or which grew out of natural regeneration.
 The transaction described in the application in Issue No.b, is an intra-State supply and attracts CGST and SGST and is independent of where the goods are taken by the recipient after the supply is completed.

Order

Summary
 

Notification No. 11/2017 Central Tax (Rate)

Section 8 of IGST

Order dated 16/07/2019

Issue: Whether the various systems, sub-systems and onboard spares supplied by the applicant for use in the Warships, Vessels and Submarines meant for Indian Navy and Shipbuilders, attracts 5% GST?

Crux: Various systems, sub-systems and onboard spares supplied by the applicant for use in the Warships, Vessels and Submarines meant for Indian Navy and Shipbuilders (excluding consumables and raw materials) are appropriately covered under sl.no.252 of Notification No.01/2017-Central Tax(Rate) dated 28.06.2017, and accordingly attracts 5% GST.

Order

Summary

Notification No. 01/2017 Central Tax (Rate)

Order dated 16/07/2019

Issue: What is the appropriate classification of Nicotine Polacriliex Lozenge (hereinafter referred to as “NCT’) manufactured by the Company and rate of tax applicable thereupon under Notification 01/2017-Central Tax (Rate), dated 28-06-2017?

Crux: The instant product, Nicotine Polacriliex Lozenge, is rightly classifiable under the heading 38.24. Accordingly the product is covered under Serial number 97 of Schedule III to Notification No. 01/2017-Central Tax (Rate) dated 28.06.2017 and attracts GST at the rate of 18% (9% CGST, 9% SGST).

Order

Summary

AAAR Order

Order dated 03/12/2019

Issue: What is the appropriate classification of Nicotine Polacriliex Lozenge (hereinafter referred to as “NCT’) manufactured by the Company and rate of tax applicable thereupon under Notification 01/2017-Central Tax (Rate), dated 28-06-2017?

Crux: AAAR uphold the Order passed by the Advance Ruling Authority and appeal filed by the appellant stands dismissed on all accounts.

Order

Summary

Notification No. 01/2017 Central Tax (Rate)

Order dated 16/07/2019

Issue: Clarification regarding applicability of Tool Amortisation cost (Transaction Value) in GST Regime on Capital Goods received freely on returnable basis from the recipients (Customer) for parts production and supply.

Crux: The cost of the tool/s supplied by the OEM on FOC basis , to the Applicant is not required to be added to the value of the parts supplied by the Applicant and hence the said value is not liable for GST,

Order

Summary
 

Circular No 47/21/2018-GST

Order dated 25/07/2019

Issue: The applicable rate of GST for the manufacturing and supply of submersible pump sets and accessories with installation ,electrification and energisation under Ganga kalyana scheme to Social welfare department of Government of Karnataka meant for various beneficiaries (farmers) as notified by the departments and they also provide guarantee and maintainance of installed submersible pump sets till two years which is used for irrigation al purpose.

Crux: The Applicant’s supply does not qualify as Works Contract”. It is a composite supply wherein the principal supply is that of the supply of goods i.e submersible pumps. The applicable GST rate to the applicant’s supply would be the rate applicable on the Principal supply i.e. submersible pump sets.

Order

Summary

Notification No. 11/2017 Central Tax (Rate)

Order dated 25/07/2019

Issue: Whether Applicant is liable for GST towards work executed under JDA on land owner's portion where work commenced during pre-GST and continued under GST Law. If tax is applicable the valuation for payment of tax'

Crux: The Applicant is liable to pay GST towards work executed under Joint Development Agreement on Land owner's portion, on the value to be arrived at in terms of para 2 of the Notification No.11/2017-Central Tax (Rate) dated 28.06.2017 at the time of transfer of possession of the land owners' portion of the fiats.

Order

Summary

Section 15 of CGST

Section 142 of CGST

Order dated 25/07/2019

Issue: Applicability of GST on partially completed flats ie:
a) Partially completed flats having identified customers before GST regime
b) Partially completed flats, where customers are identified after implementation of GST regime, and
c) Partially completed flats, where no customers are identified.

Crux: a) In respect of Partially completed flats having identified customers before GST regime, the Applicant is liable to pay service tax under the Finance Act 1994 proportionate to the services provided up to 30,06.2017 and from 01.07.2017 onwards liable to pay GST proportionate to the services provided effective from 01.07.2017, in terms of Section 142(11)(b) of the CGST Act 2017.
b) In respect of partially completed flats, where customers are identified after implementation of GST, the Applicant is liable to pay GST on the transaction value of supply.
c) In respect of partially completed flats, where no customers are identified the applicant is not liable to GST as no supply is involved. However, if the supply is made prior to the issuance of completion certificate then GST is liable to be paid on the transaction value of supply, as answered in (b) above.

Order

Summary

Notification No. 11/2017 Central Tax (Rate)

Order dated 25/06/2019

Issue: (a) What is rate of tax for “Perfumed Deepam Oil” which is prepared by mixing Gingely Oil, Palmoline Oil, Rice Bran Oil or any one oil with perfume or chemical and used for lighting lamp for God (not for cooking) with HSN Code.

(b) What is rate of tax for “Non- perfumed Deepam Oil” which is prepared by mixing Gingely Oil, Palmoline Oil, Rice Bran Oil or any one oil without perfume or chemical and used for lighting lamp for God (not for cooking) with HSN Code.

(c) What is rate of tax for a mixture of Gingely Oil, Palmoline Oil, Rice Bran Oil or any one oil

Crux: (a). The "Perfume Deepam Oil" (Not for Cooking) - which is prepared by adding perfume to either a mixture of Gingely Oil, Palmoline Oil and Rice Bran Oil or to any one of the above oils - is covered under HSN 1518 & is taxable at 6% under CGST Act, 6% under KGST Act and 12% under the IGST Act.

(b). "Deepam Oil" (Not for Cooking)- which is prepared by either a mixture of Gingely Oil, Palmoline Oil and Rice Bran Oil or any of the above oil and 'not for cooking' would fall under Chapter Heading 1518 and attract CGST @ 6%, KGST @ 6% and IGST @ 12%.

(c) Each of the oils, namely Palmoline Oil falling under Chapter heading 1511, Gingely Oil & Rice Bran Oil falling under Chapter Heading 1515 and the mixture of the said edible oils falling under Chapter Heading 1517 would attract CGST @ 2.5%, KGST @ 2.5% and IGST @ 5%.

Order

Summary

Notification No. 01/2017 Integrated Tax (Rate)

Order dated 25/06/2019

Issue: Whether the activity of building and mounting of the body on the chassis by the Applicant will result in supply of goods under HSN 8707 or supply of services under HSN 9988?

Crux: The supply of ready built body and the activity of mere mounting the body on chassis supplied by the owner amounts to supply of goods and merits classification under HSN 8707, attracting 28% of GST.

ii. The activity of step by step building of the body on the chassis supplied by the owner using their own inputs & capital goods amounts to supply of service, in terms of Circular dated 9.8.2018 and merits classification under SAC 9988, attracting 18% of GST.

Order

Summary

Circular, No. 52/26/2018 – GST

Order dated 23/03/2020

Issue: 1. Whether exemption prescribed under entry number 13 of notification no. 9/2017- integrated tax (rate) dated. 28th June, 2017 can be sought and the lessors (Ambrish Vasudeva) need not charge GST while issuing the invoice for the lease service to M/s. D. Twelve Spaces Pvt. ltd.
2. Whether the lease service falls under the Exemption prescribed and can be described as Services by way of renting of residential dwelling for use as residence.

Crux: 1. The exemption prescribed under entry no. 13 of Notification No. 9/2017 - Integrated tax (Rate) dated 28th June 2017 cannot be sought and the lessors (as an entity) have to charge GST while issuing the invoice for the lease services to M/s. D.Twelve Spaces Pvt. Ltd, provided they are registered under the GST Act.
2. The lease services does not fall under the exemption Services by way of renting of residential dwelling for use as residence as listed in entry 13 of Notification No. 9/2017 - Integrated tax (Rate) dated 28th June 2017.

Order

Summary

AAAR Order

Order dated 31/08/2020

Issue: 1. Whether exemption prescribed under entry number 13 of notification no. 9/2017- integrated tax (rate) dated. 28th June, 2017 can be sought and the lessors (Ambrish Vasudeva) need not charge GST while issuing the invoice for the lease service to M/s. D. Twelve Spaces Pvt. ltd.
2. Whether the lease service falls under the Exemption prescribed and can be described as Services by way of renting of residential dwelling for use as residence.

Crux: AAAR uphold the advance ruling pronounced by authority of advance ruling- Karnataka.

Order

Summary

Order dated 22/01/2019

Issue: Whether the “Power Bank” is classifiable under Heading 8504 40 90 as ‘Static Converter – Others’?

Crux: The “Power Bank”, traded by the Applicant, is classifiable under Heading 8507 as Accumulator and not as Static Converter.

Order

Summary

AAAR Order

Order dated 16/08/2019

Issue: Whether the “Power Bank” is classifiable under Heading 8504 40 90 as ‘Static Converter – Others’?

Crux: AAAR uphold the order passed by the Advance Ruling Authority and appeal filed by the appellant stands dismissed on all accounts.

Order

Summary

Notification No. 24/2018 Central Tax (Rate)

Order dated 31/12/2018

Issue: Whether Evacuated / Vacuum Tube Collectors (VTC) falls under Chapter 84 of HSN which is covered in SI no 234 of Schedule -I under notification 1/2017 IGST rate dated 28-06 2017?

Crux: The product Evacuated Tube Collector (ETC) though falls under Chapter 84 heading 19 but is not covered under SL.No.234 of Schedule-I of the Notification 01/2017-Integrated Tax(Rate) dated 28.06.2017, effective from 01.07.2017, & hence not entitled for concessional rate of 5% IGST.

Order

Summary

Notification No. 01/2017 Integrated Tax (Rate)

Order dated 03/12/2018

Issue:(a) Which date should be considered as the date of completion of the property – the date of receipt of necessary approvals from BBMP / Karnataka Pollution Control Board / Karnataka Electricity Board or the date of receipt of completion certificate from a registered Chartered Engineer?

(b) Whether the applicant is liable to pay GST on any amount received as consideration towards sale of completed offices, after the date of completion, where part of the consideration was received prior to the date of completion as determined in question (a) above?

(c) Whether the applicant is liable to pay GST on the consideration received as consideration towards the sale of completed offices, where the entire consideration is received after the date of completion of construction as determined in question number (a) above?

Crux:1. The date of Occupancy Certificate issued by the competent authority, i.e. Bruhat Bengaluru Mahanagara Palike should be treated as the date of completion of the construction.

2. If any part of the consideration is received before such date of completion, then the transaction would be considered as the supply of services in terms of entry 5 of Schedule II to the GST Acts, and liable for GST.

3. If the entire consideration is received after the date of completion, then the transaction would not be liable to GST.

Order

Summary

Schedule II of CGST

Order dated 28/11/2018

Issue:-1. Whether the applicant is liable to pay GST on the value of building constructed and handed over to the land owner in terms of the Joint Development Agreement?
2. If there is liability to pay GST on what value is the GST to be paid since there is no monetary consideration involved?
3. Is the applicant liable to pay service tax up to 30.06.2017 and GST thereafter?

Crux:1. Applicant is liable to pay GST on the value of building constructed and handed over to the land owner in terms of the Joint Development Agreement.
2. The value on which the applicant is liable to pay GST is to be determined in terms of para 2 of Notification 11/2017 – Central Tax (Rate) dated 28.06.2017.
3. Applicant is liable to pay service tax/GST proportionate to the services provided before/after 30.06.2017 respectively as per section 142(11)(b).

Order

Summary

Notification No. 04/2018 Central Tax (Rate)

Notification No. 11/2017 Central Tax (Rate)

Order dated 28/11/2018

Issue: “Whether the applicant being the land owner is liable to pay GST on premises allotted to him, which he intends to distribute among his family members?”

Crux: Applicant being the person who has supplied development rights to a developer in respect of his land, is liable to registration and payment of tax.

Order

Summary

Notification No. 04/2018 Central Tax (Rate)

Order dated 17/11/2018

Issue: Whether the Turbine Generator set to be supplied by the applicant to the buyer for use in waste to energy project is covered under Sl. No. 234 of Schedule I of Notification No. 1/2017 – IGST (Rate) dated 28.06.2017 as “Renewable Energy Devices and parts for the manufacture of waste to energy plants/devices”, attracting 5% levy?

Crux: The Turbine Generator set to be supplied by the applicant for use in waste to energy project is not covered under Sl. No. 234 of Schedule I of Notification No. 1/2017 – IGST (Rate) dated 28.06.2017.

Order

Summary

Order set aside by AAAR

Order dated 03/04/2019

Issue: Whether the turbine generator set to be supplied by the applicant to the buyer for use in waste-to-energy project is covered under SINo.231 of Schedule I of Notification No. 1/2017-IGST(Rate) dated 28.06.2017 as “Renewable energy devices and parts for the manufacture of waste to energy plants/devices” attracting 5% levy?

Crux: The turbine generator set to be supplied by the Appellant to the buyer for use in waste-to-energy project is covered under ,51.No.234 of Schedule 1 of Notification No. 1/2017-IT(Rate) dated 28.06.2017 attracting 5% levy.

Order

Summary

Notification No. 01/2017 Integrated Tax (Rate)

Order dated 17/11/2018

Issue: Classification of Tutty-Fruity under HSN 08111010 or 20060000.

Crux: The Tutty-Fruity being the product of papaya is covered under Chapter/ Heading/ Sub-heading/ Tariff item 20 06 00 00.

Order

Summary

Notification No. 01/2017 Central Tax (Rate)

M/S Columbia Asia Hospitals Private Limited v/s Sri. Harish Dharnia, Additional Commissioner of Central Tax, and Dr. Ravi Prasad M.P. Joint Commissioner of Commercial Taxes

Order dated 13/11/2018

Issues:-A. Whether two or more supplies of goods or services which are naturally bundled in which Principal supply is exempt and others are taxable, can be treated a composite supply and if yes, principal supply being exempt supply , can the said composite supply be treated a exempt supply or the same cannot be treated as composite supply?
B. If not treated as composite supply, is registered person allowed to claim input tax credit of tax paid on procurement of capital goods, inputs and input services related to both taxable supply and exempted supply.

Crux: A. The two or more supplies of goods or services which are naturally bundled in which Principal supply is exempt and others are taxable, can be treated a composite supply of the principal if such principal supply is not non-taxable supply as per sub-section (78) of section 2 of CGST Act, 2017 and such composite supply with the principal supply being exempt supply would be treated as an exempt composite supply.
B. Input tax credit can be claimed only on for such taxes paid on the inputs, input services and capital goods which are attributable to the supplies of goods or services which are taxable under the provisions of the CGST Act, 2017 and not attributable to exempt supplies of goods or services under the CGST Act, 2017.

Order

Summary

Section 02 of CGST

Section 17 of CGST

Notification No. 12/2017 Central Tax (Rate)

M/s Nash Industries (I) Pvt. Ltd. v/s Sri. Harish Dharnia, Additional Commissioner of Central Tax, and Dr. Ravi Prasad M.P. Joint Commissioner of Commercial Taxes

Order dated 25/10/2018

Issues:- Whether the amortised cost of the tool to be added to arrive at the value of the goods supplied for the purpose of GST under Section 15 of the CGST Act read with rule 27 of CGST Rules.

Crux:- The amortised cost of tools which are re-supplied back to the applicant free of cost shall be added to the value of the components while calculating the value of the components supplied as per the Section 15 of the CGST / SGST / IGST Act 2017.

Order

Summary

Order set aside by AAAR

Order dated 01/03/2019

Issues:-Whether the amortized cost of the tools is to be added to arrive at the value of the goods supplied for the purpose of GST under Section 15 of the CGST Act read with Rule 27 of CGST Rules.

Crux:-AAAR set aside the ruling of the AAR and hold that the cost of the tools supplied by the OEM customer on FOC basis to the Appellant is not required to be added to the value of the components supplied by the Appellant.

Order

Summary

Section 15 of CGST

M/s Indian Institute of Management v/s Sri. Harish Dharnia, Joint Commissioner of Central Tax, and Dr. Ravi Prasad M.P. Joint Commissioner of Commercial Taxes

Order dated 25/10/2018

Issues:- a) Whether the long duration post graduate diploma/ degree granting programmes offered by the Indian Institute of Management, Bengaluru other than specifically mentioned in Sl.No.67 of Notification No.12/ 2017 – Central Tax (Rate) dated 28th June 2017 as amended by Notification No.2 /2018 dated 25th January 2018 are exempted from the GST output liability on education as a part of a curriculum for obtaining a qualification recognized by any law for the time being in force in the light of enactment of the Indian Institute of Management Act, 2017?

b) Whether supply of online educational journals or periodicals to the Indian Institute of Management, Bengaluru is exempted from reverse charge liability of GST under Sl. No.66 of Notification No.12 / 2017 – Central Tax (Rate) dated 28th June 2017 as amended by Notification No. 2/2018 dated 25th January 2018 being education provided as a part of a curriculum for obtaining a qualification recognized by any law for the time being in force in the light of enactment of the Indian Institute of Management Act, 2017?

Crux:- a) The long duration post graduate diploma/ degree granting programmes offered by the Indian Institute of Management, Bengaluru other than specifically mentioned in Sl.No.67 of Notification No.12/ 2017 – Central Tax (Rate) are not exempt from GST.

b) As Serial Number 67 has been carved out specifically and only for the educational services provided by the Indian Institutes of Management, the provisions of serial number 66 shall not apply to them and therefore are not exempted from reverse charge liability of GST under Sl. No.66 of Notification No.12 / 2017 – Central Tax (Rate).

Order

Summary

Order set aside by AAAR

Order dated 08/03/2019

Issues:- a) Whether the long duration post graduate diploma/degree granting programs offered by the IIMB, other than those specifically mentioned in Sl.No 67 of Notification No 12/2017 CT(Rate) dated 28th June 2017 as amended by Notification No 02/2018 dated 25th January 2018, are exempted from GST output liability, being education as a part of a curriculum for obtaining a qualification recognized by any law for the time being in force, in the light of the enactment of the IIM Act, 2017?

b) Whether supply of online educational journals or periodicals to the IIMB is exempted from reverse charge liability of GST under Sl.No 66 of Notification No 12/2017 CT(Rate) dated 28th June 2017 as amended by Notification No 02/2018 dated 25th Jan 2018. being education as a part of a curriculum for obtaining a qualification recognized by any law for the time being in force in the light of the enactment of the IIM Act, 2017?

Crux:-AAAR set aside the order passed by Advance Ruling Authority and held that:
a) Pursuant to the enactment of the IIM Act, 2017, with effect from 31st January 2018, the long duration post graduate programs offered by IIMB will be exempt from GST under SI.No 66 of the Notification No 12/2017 CT(R) as amended. During the period 31st January 2018 to 31st December 2018, IIMB can avail the benefit of exemption under either Sl.No 66 or Sl.No 67 of Notification No 12/2017 CT(R) dated 28.06.2017 as amended.

b) IIMB will be eligible for exemption from payment of IGST in respect of supply of online journals and periodicals received from a person located in a non-taxable territory in terms of Sl.No 10 of Notification No 09/2017 IT (R) dated 28.06.2017 as amended.

Order

Summary

Notification No. 12/2017 Central Tax (Rate)

M/s Toshniwal Brothers (SR) Private Limited v/s Sri. Harish Dharnia, Joint Commissioner of Central Tax, and Dr. Ravi Prasad M.P. Joint Commissioner of Commercial Taxes

Order dated 19/09/2018

Issues:- 1. Whether pure and mere promotion and marketing services will be “intermediary services” for the purposes of section 12 of the Integrated Goods and Services Tax Act, 2017 for determining the place of supply of such services?

2. If after sale support services are also provided under a composite contract, would it then be composite supply? What will be the principal supply for such contracts?

3. Whether the above contracts would qualify as exports if the client is overseas entity, in terms of clause (6) of section 2 of the Integrated Goods and Services Tax Act, 2017 and will be a zero-rated supply as provided in section 16 of IGST Act, 2017?

Crux:- 1. The contract of services supplied are not pure and mere promotion and marketing services and the services provided is of the nature of facilitating the supply of goods, and hence would amount to “intermediary services” for the purposes of determination of place of supply of such services.

2. The after-sale services provided are not in the nature of a composite contract and they are independent from the services provided and hence there is no question of determination of what will the principal supply.

3. The third question cannot be answered as it is not in the purview of jurisdiction of this Authority as it amounts to determination of the place of supply.

Order

Summary

Order upheld by AAAR

Order dated 09/01/2019

Issues:-a. Whether pure and mere promotion and marketing services will be “intermediary services” for the purposes of section 12 of the Integrated Goods and Services Tax Act, 2017 for determining the place of supply of such services?
b. If after sale support services are also provided under a composite contract, would it then be composite supply? What will be the principal supply for such contracts?
c. Whether the above contracts would qualify as exports if the client is overseas entity, in terms of clause (6) of section 2 of the Integrated Goods and Services Tax Act, 2017 and will be a zero-rated supply as provided in section 16 of IGST Act, 2017?

Crux:-AAAR uphold the ruling pronounced by ARA that:
a. The contract of services supplied are not pure and mere promotion and marketing services and the services provided are of the nature of facilitating the supply of goods, and hence would amount to “intermediary services” for the purposes of determination of place of supply of such services.
b. The after-sale services provided are not in the nature of a composite contract and they are independent from the services of promotion and marketing and hence there is no question of determination of what will the principal supply.
c. The third question cannot be answered as it is not in the purview of jurisdiction of the Authority as it amounts to determination of the place of supply.

Order

Summary

Notification No. 12/2017 Central Tax (Rate)

M/s Coffee Day Global Limited v/s Sri. Harish Dharnia, Joint Commissioner of Central Tax, and Dr. Ravi Prasad M.P. Joint Commissioner of Commercial Taxes

Order dated 21/08/2018

Issues:- Whether the applicant is entitled to pay GST @ 18% (CGST-9% and SGST-9%) and claim input tax credit?

Crux:- The Applicant is not entitled to pay the GST @ 18% with input tax credit as the services being offered by the Applicant are classified under a heading attracting GST @ 5%, without input tax credit.

Order

Summary

Notification No. 11/2017 Central Tax (Rate)

M/s Emerge Vocational Skills Private Limited v/s Sri. Harish Dharnia, Joint Commissioner of Central Tax, and Dr. Ravi Prasad M.P. Joint Commissioner of Commercial Taxes

Order dated 13/08/2018

Issues:- Whether the services provided by the applicant in affiliation to specified universities and providing degree courses to students under related curriculums are exempt from Goods and Services Tax vide entry no. 66 of the Notification No. 12/ 2017 – Central Tax dated 28.06.2017?

Crux:- The services provided by the applicant in affiliation to specified universities and providing degree courses to students under related curriculums exempt from CGST vide entry no. 66 of the Notification No. 12/ 2017 – Central Tax (Rate) dated 28.06.2017 subject to the condition that such education services provided must be as a part of a curriculum for obtaining a qualification recognized by any law for the time being in force.

Order

Summary

Notification No. 12/2017 Central Tax (Rate)

AR of Madhaya Pardesh
Indian Institute of Management
(Summary)

M/s Maini Precision Products Ltd v/s Sri. Harish Dharnia, Joint Commissioner of Central Tax, and Dr. Ravi Prasad M.P. Joint Commissioner of Commercial Taxes

Order dated 06/08/2018

Issues:- 1. Whether the "Parts of Fuel Injection Pumps‟ are classifiable under Tariff Heading 8413 91 90?

2. Whether the applicable entry in Notification 01/ 2017 – Integrated Tax (Rate), is 453 of Schedule III, for parts of fuel injection pumps, attracting a levy of 18%?

Crux:- 1. The “Parts of Fuel Injection Pumps for diesel engines” are classifiable under Tariff Heading 8413 91 90 as per the Customs Tariff Act, 1975.

2. The “Parts of Fuel Injection Pumps for diesel engines” are covered under the entry no. 453 of Schedule III of Notification No.1/ 2017 – Integrated tax (Rate) dated 28.06.2017 and hence liable to tax at 18%.

Order

Summary
 

Notification No. 01/2017 Central Tax (Rate)

M/s The Nursery Men Cooperative Society v/s Sri. Harish Dharnia, Joint Commissioner of Central Tax, and Dr. Ravi Prasad M.P. Joint Commissioner of Commercial Taxes

Order dated 06/08/2018

Issues:- Whether landscaping and gardening work for government departments like BBMP, KSRTC, etc, through works contract attracts GST from this society?

Crux:- The service of maintenance of parks provided by the society to the State Government, Central Government or a Local Authority (including BBMP) or a Governmental Authority, not involving transfer of property in goods either as a component of a works contract or a composite supply is covered under entry no. 3 of the Notification No. 12/ 2017 Central Tax (Rate) dated 28th June 2017 and hence exempt.
This exemption is not available if there is any transfer of property in goods or if the service is made to persons other than State Government, Central Government or a local Authority or a Governmental Authority.

Order

Summary

Notification No. 12/2017 Central Tax (Rate)

M/s V Pac Cartons India Pvt Ltd v/s Sri. Harish Dharnia, Joint Commissioner of Central Tax, and Dr. Ravi Prasad M.P. Joint Commissioner of Commercial Taxes

Order dated 06/08/2018

Issues:- Determination of GST rate on finished goods Pallets and Box Pallets?

Crux:- The commodity “pallets and box pallets” are covered under HSN 4415 20 00 and covered under entry no. 97 of Schedule II of Notification No.01/2017- Central Tax (Rate) and hence the tax rates applicable on the same are 6% CGST and 6% SGST.

Order

Summary

Notification No. 01/2017 Central Tax (Rate)

M/s Rajarathnam's Jewels v/s Sri. Harish Dharnia, Joint Commissioner of Central Tax, and Dr. Ravi Prasad M.P. Joint Commissioner of Commercial Taxes

Order dated 27/07/2018

Issues:-a) Whether mere deposit of diamond with safe vaults acknowledged by Electronic Vault Receipts (EVR) would be treated as supply for the purpose of levy of GST?

b) Whether conversion of EVR (representing receipt for diamonds deposited) into e-Units (securities) would be treated as supply liable to GST?

c) Whether e-Units would be treated as securities and thereby transaction in e-Units would remain out of scope of the levy under GST?

d) Whether the derivative contracts in e-Unit and settlement thereof would be treated as transaction in securities and thereby would remain out of scope of the levy under GST?

e) Whether conversion of e-Units into diamonds would be treated as supply liable to GST?

Crux:-a) The mere deposit of diamond with safe vaults acknowledged by Electronic Vault Receipts (EVR) does not constitute of supply of diamonds for the purpose of levy of GST

b) The conversion of Electronic Vault Receipts representing the diamonds held in the Vaults to e-Units would constitute a supply of diamonds liable to tax under the Goods and Service Tax Act.

c) The e-Units are securities under the clause (101) of section 2 of the Central Goods and Services Tax Act and hence transactions in e-Units would remain out of the scope of levy of tax under Goods and Services Tax Act.

d) The derivative contracts in e-Units and settlement thereof would be treated as transactions in securities in case it involves only e-Units without any involvement of physical diamonds and thereby would remain out of the scope of levy under GST.

e) The conversion of e-Units into diamonds would constitute a supply of diamonds liable to tax under the Goods and Services Tax Act.

Order

Summary

Notification No. 11/2017 Central Tax (Rate)

M/s Columbia Asia Hospitals Private Limited v/s Sri. Harish Dharnia, Joint Commissioner of Central Tax, and Dr. Ravi Prasad M.P. Joint Conmissioner of Commercial Taxes

Order dated 27/07/2018

Issues:- Whether the activities performed by the employees at the corporate office in the course of or in relation to employment such as accounting, other administrative and IT system maintenance for the units located in the other states as well i.e. distinct persons as per Section 25(4) of the Central Goods and Services Tax Act, 2017 (CGST Act) shall be treated as supply as per Entry 2 of Schedule I of the CGST Act or it shall not be treated as supply of services as per Entry 1 of Schedule III of the CGST Act?

Crux:- The activities performed by the employees at the corporate office in the course of or in relation to employment such as accounting, other administrative and IT system maintenance for the units located in the other states as well i.e. distinct persons as per Section 25(4) of the Central Goods and Services Tax Act, 2017 (CGST Act) shall be treated as supply as per Entry 2 of Schedule I of the CGST Act.

Order

Summary

Order upheld by AAAR

Order dated 12/12/2018

Issue: whether the activities of the IMO, involving the services of the personnel stationed at the IMO and the expenses incurred in operating the IMO, all of which benefit and flow to the other distinct units of the Appellant, would amount to a ‘supply’ between distinct persons and constitute a taxable supply in terms of Section 7 of the CGST Act.

Crux: AAAR uphold the decision of AAR that the India Management Office (IMO) of the Appellant is providing a service to its other distinct units by way of carrying out activities such as accounting, administrative work, etc with the use of the services of the employees working in the IMO, the outcome of which benefits all the other units and such activity is to be treated as a taxable supply in terms of the entry 2 of Schedule I read with Section 7 of the CGST Act.

Order

Summary

Schedule III of CGST

Section 25 of CGST

M/s Opta Cabs Private Limited v/s Sri. Harish Dharnia, Joint Commissioner of Central Tax, and Dr. Ravi Prasad M.P. Joint Commissioner of Commercial Taxes

Order dated 27/07/2018

Issues:- Whether the money paid by the customer to the driver of the cab for the services of the trip is liable to GST and whether the applicant company is liable to pay GST on this amount?

Crux:- The applicant is liable to tax on the amounts billed by him on behalf of the taxi operators for the service provided in the nature of transportation of passengers through it, in accordance with the provisions of sub-section (5) of section 9 of the Central Goods and Services Tax Act 2017 read with Notification No. 17/2017 –Central Tax (Rate).

Order

Summary

Order Upheld by AAAR

Order dated 04/12/2018

Issue: Whether the Appellant is an e-commerce operator and if so whether he is liable to pay tax on the service supplied through it in terms of Section 9(5) of the CGST Act?”

Crux: AAAR uphold the order of AAR that the appellant is an “electronic commerce operator” under Section 2(45) of the CGST Act as the services of transportation of passengers supplied through the Appellant’s electronic platform and digital network, hence, he is liable to pay tax on the service supplied through it in terms of Section 9(5) of the CGST Act.

Order

Summary

Notification No. 17/2017 Central Tax (Rate)

M/s Coffee Day Global Limited v/s Sri. Harish Dharnia, Joint Commissioner of Central Tax, and Dr. Ravi Prasad M.P. Joint Commissioner of Commercial Taxes

Order dated 26/07/2018

Issues:-a) Whether supply of non-alcoholic beverages to SEZ units using coffee vending machines is in the nature of zero rated supply as defined under Section 16 of the IGST Act 2017 ?

Crux:-a) The supply of non-alcoholic beverages / ingredients to such beverages, to SEZ units using coffee vending machines by the applicant, do not qualify as zero rated supply, as defined under Section 16 of the IGST Act‟2017.

Order

Summary

M/s United Breweries Limited v/s Sri. Harish Dharnia, Joint Commissioner of Central Tax, and Dr. Ravi Prasad M.P. Joint Commissioner of Commercial Taxes

Order dated 23/04/2018

Issues:-a) Whether beer bearing brand/s owned by M/s United Breweries Limited (Brand Owner/UBL) manufactured by Contract Brewing Units (CBUs) out of the raw materials, packaging materials and other input materials procured by it and accounted by it and thereafter selling such beer to various parties under its invoicing would be considered as supply of services and whether GST is payable by the CBUs on the profit earned out of such manufacturing activity?

b) Whether GST is payable by the Brand owner on the Surplus Profit transferred by the CBU to the Brand Owner out of such manufacturing activity?

Crux:-a) The CBUs are not engaged in supply of service to the applicant and therefore there does not arise any liability to pay GST on the amount retained by the CBUs as their profit.

b) Yes, GST is payable by the Brand owner (UBL) on Surplus Profit transferred by the CBU to brand owner out of the manufacturing activity and the supply of service to the CBUs is classified under Service Code (Tariff) 999799 and liable to pay GST at 18% ( CGST-9%, SGST-9%) on the amount received from the CBUs.

Order

Summary

Order Upheld by AAAR

Order dated 23/10/2018

Issue: a. Whether, beer bearing brand/s owned by the Appellant manufactured by Contract Brewing Units out of the raw  materials, packaging materials and other input materials procured by it and accounted by it and thereafter selling such beer to  various parties under its invoicing would be considered as supply of services and whether GST is payable by the CBUs on the profit earned out of such manufacturing activity? b. Whether, GST is payable by the Brand Owner on the Surplus Profit transferred by the CBU to Brand Owner out of such manufacturing activity?

Crux: AAAR modified the ruling pronounced by Authority as under:
a) The activity engaged in by the Appellant by way of granting the contracting brewing units the representational right to manufacture and supply beer bearing its brand name, in return for a consideration, is a supply of service as mandated in Section 7 of the CGST Act read with clause 5(c) of the Schedule II of the said Act.
b) The supply of service by the Appellant is taxable to GST in terms of Section 9 of the CGST Act.
c) The service supplied by the Appellant is classified under the Service Code 999799 as other services nowhere else classified
d) The amounts received by the Appellant from the contracting units under the Agreement, in the nature of Brand Fee and reimbursement of expenses, is termed as a consideration for the supply of service and is chargeable to GST at the applicable rate of 18%.

Order

Summary

Order dated 23/04/2018

Issues:- 1.Whether the transaction of selling one manufacturing unit along with all fixed assets , current assets & liabilities for a lump sum consideration treated "supply of goods or supply of service or supply of goods & services"

2.Whether the transaction would cover under Sl No. 2 of the Notification No. 12/2017-Central Tax (Rate) dated 28.06.2017

Crux:- 1.Sale of business as a going concern by the applicant is a supply of service.

2.Service by way of transfer of business as a going concern is exempt under Sl No. 2 of the Notification No. 12/2017-Central Tax (Rate)

Order

Summary

Schedule II of CGST

Order dated 21/03/2018

Issue:-Whether GST is leviable on the rent payable by the hospital, providing life saving service.

Crux:-Rent paid on non-residential premises is chargeable to GST even though the out put service being provided from the leased premises is exempted.

Order

Summary

Order Upheld by AAAR

Order dated 05/09/2018

Issue: Whether GST is leviable on the rent payable by a hospital supplying lifesaving services (cardiology and emergency services). How to avail ITC or claim refund of ITC to the extent of GST paid/payable on rent of premises?

Crux: AAAR uphold the order of AAR that GST is leviable @ 18% (CGST @ 9% + SGST @ 9%) on the rent paid / payable for premises taken on lease by the Applicant for running the hospital and the questions regarding ITC and refund of ITC are dismissed on the ground that they are not raised earlier before AAR.

Order

Summary

Order dated 21/03/2018

Issues :-1.Whether the applicant qualifies as clinical establishment, and 

2. Whether services (oncology & immunology therapy and diagnostic related product)  provided by them are covered under Health care services and exempt for tax.

Crux :- 1.Services provided by the applicant are at clinical establishment and are covered under clause 2(s) of the Notification no. 12/2017- Central Tax (Rate) dated 28.06.2017  

2. Services provided by the applicant qualifies to be a Health Care Service and exempt from Tax.

Order

Summary
 

Order dated 21/03/2018

Isuues :-1.Whether the contract, executed by applicant for KPTCL, is a divisible contract [Supply of goods & Supply of Services] or an indivisible contract [ works contract]?

2.Whether the tax rate of 12% [CCST-6% + SGST-6%] is applicable to the above contract, in pursuance of NotificationNo.24/2017-Central Tax (Rate) dated 21.09.2017?.

Crux :-1. The contract of the applicant is of the nature of indivisible and falls under the 'Work Contract' which is a supply of service.

2. The Applicant is not entitled for the benefit of concessional rate of GST @ 12% under Notification No.24/2017 -Central Tax (Rate) dated 21.09.2017 as the same is available only to a statutory body created by Parliament or a State Legislature. 

Order

Summary

M/s Gogte Infrastructure Development corporation Limited v/s Sri. Harish Dharda, Joint Commissioner of Central Tax, and Dr. Ravi Prasad M.P. Joint Commissioner of Commercial Taxes

Order dated 21/03/2018

Issues :-Whether the Hotel Accommodation & Restaurant services provided by applicant , within the premises of the hotel, to the employees and guest of SEZ units be treated as supply of goods & services to SEZ units in the state or not.

Crux :- If the hotel is located in DTA, then supply of services to the guests and employees of SEZ unit is intra state supply and is taxable accordingly and  provisions of Section 16(1)(b) of IGST Act, 2017 not attracted.

Order

Summary

AR of West Bengal
Garuda Power Private Limited
(Summary)
 

M/s Giriraj Renewables Private Ltd. v/s Sri. Harish Dharda, Joint Commissioner of Central Tax, and Dr. Ravi Prasad M.P. Joint Commissioner of Commercial Taxes

Order dated 21/03/2018

Issues:-a) Whether supply of turnkey Engineering, Procurement & Construction (EPC) Contract for construction of solar power plant wherein both goods and services are supplied can be construed to be a composite Supply in terms of Section 2(30) of CGST Act, 2017.

b) If yes, Whether the Principal Supply in such case can be said to be 'Solar Power Generating System' which is taxable at 5% GST.

c) Whether benefit of concessional rate of 5% of solar power generation system and parts thereof would also be available to sub-contractors.

Crux:-a) The major component (PV Module) constitute major value of the whole contract in the project which is procured by the owner and not supplied by the contractor, as such, it cannot be construed to be a principal supply of the project and thereby cannot be treated as composite supply defined under Section 2(30) of the CGST Act, 2017. In the absence of natural bundling concept the supply made in this case does not amount to a ‘Composite Supply’.

b) Decision not given as the question is not relevant on account of answer to question no. 1.

c) Supplied made by the sub contactor to be viewed as individual supply and thereby the appropriate rate of GST applied, depending on the specific nature of supply and not the concessional rate.

Order

Summary

Order modified by AAAR

Order dated 05/09/2018

Issues:-a. Whether supply of turnkey Engineering, Procurement & Construction (EPC) Contract for construction of a solar power plant wherein both goods and services are supplied can be construed to be a composite supply in terms of Section 2(30) of the CGST Act, 2017?
b. If yes, whether the principal supply in such case can be said to be of “Solar Power Generating System”, which is taxable at 5% GST?
c. Whether, benefit or concessional rate of 5% on Solar Power Generation System and parts thereof would also be available to sub-contractors?

Crux:-AAAR modified the Ruling of the Karnataka Authority for Advance Ruling as under:

a) The supply of the PV module which is the major component of the Solar Power Plant is not naturally bundled with the supply of the remaining components & parts of the Solar Power Plant and the supply of the services of Erection, Installation and Commissioning of the Solar Power Plant.

b) The supply of PV module is a distinct transaction from the supplies in contract in question as it is the owner whose responsibility it is to procure and supply the PV module. This PV module is to be supplied as free issue material over and above the plant being supplied by the contractor. The owner is responsible for transportation of the PV module from the point of origin till plant site and he bears the other risks and rewards of ownership. The PV module which is procured by the Project owner on High Sea Sale basis and imported by availing Customs duty exemptions and later supplied to the Appellant as a free issue for use in the setting up of the Solar Power Plant.

c) The supply of the remaining portion of the contract in question by the Appellant which involves the supply of the balance components and parts of the Solar Power Plant and the supply of services of Erection, Installation and Commissioning of the Solar Power Plant is viewed as a ‘composite supply’ as the supply of goods and services are naturally bundled.

d) The tax liability on this portion of the contract in question (other than PV module) which is termed as a ‘composite supply’ will be determined in terms of Section 8 of the CGST Act, 2017 wherein the rate applicable to the dominant nature of the supply will prevail.

Order

Summary
 

AR of Andhra Pardesh
Mr. Dinesh Kumar Agrawal
(Summary)

AR of MadhyaPardesh
Swati Dubey
(Summary)

AR of Maharashtra
Fermi Solar Farms private Limited
(Summary)

AR of Rajasthan
RFE Solar Private Limited
(Summary)

AR of Maharashtra
Giriraj Renewables private Limited
(Summary)

AR of Uttarakhand
M/s Eapro Global Limited
(Summary)

AR of Rajasthan
M/s Solai Redirect India LLP
(Summary)

AR of Rajasthan
M/s Frizo India Private Limited(Summary)