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M/s Garware Industriees Limited v/s  Shri. Rajiv Magoo, Addittional Commissioner of Central Tax, (Member) And Shri. T. R. Ramnani, Joint Commissioner of State Tax, (Member)

Order dated 11/10/2021

Issue: Whether the activity carried out by the applicant as per the agreement with M/s Garware Polyester Limited (GPL) amounts to jobwork and if yes, whether the said activity falls under clause (id) Heading 9988 of Notification no. 20/2019 dated 30/09/2019?

Crux: The Impugned services provided by applicant falls under clause (id) Heading 9988.

Order

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M/s. Fine electro coating v/s  Shri. Rajiv Magoo, Addittional Commissioner of Central Tax, (Member) And Shri. T. R. Ramnani, Joint Commissioner of State Tax, (Member)

Order dated 11/10/2021

Issue: 1) Whether the process followed will be treated as a Service as per Schedule II Point No. 3 and the activity to be treated as Job Work.
2) Whether Notification No. 20/2019 Central Tax (Rate) New Delhi, 30th September, 2019 where GST Rate on Job work is reduced to 6% from 9% is applicable to the firm.

Crux: The process followed by the Applicant is treated as Job work service and GST Rate on Job work as reduced to 6% from 9% vide Notification No. 20/2019 Central Tax (Rate) are applicable.

Order

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M/s Accurex Biomedical Private Limited v/s  Shri. Rajiv Magoo, Addittional Commissioner of Central Tax, (Member) And Shri. T. R. Ramnani, Joint Commissioner of State Tax, (Member)

Order dated 11/10/2021

Issue: Classification in the tariff i.e. harmonized system of nomenclature (F1SN) and GST rate for 1. Turbilatex C-reactive protein (CRP) infinite 2. HbA1c infinite.

Crux: The said products are classifiable under Heading 38.22 and under Sr.No 80 of Schedule II of the Notification No. 1/2017-Central Tax (Rate) dated 28th June, 2017 attract GST @ 12% (6% each of CGST and SGST/UTGST or 12% IGST)

Order

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M/s Nagpur Waste Water Management Pvt. Ltd. v/s  Shri. Rajiv Magoo, Addittional Commissioner of Central Tax, (Member) And Shri. T. R. Ramnani, Joint Commissioner of State Tax, (Member)

Order dated 24/09/2021

Issue: 1. Whether the Royalty paid or payable by the applicant to Nagpur Municipal Corporation (NMC) for supplying Tertiary Treated Water� to Maharashtra State Electricity Generating Company Ltd (MAHAGENCO), by treating the Sewage Water supplied by NMC is liable to tax under the GST Law?

2. If yes, whether the tax is to be paid by NMC under forward charge or same is to be paid by the applicant under reverse charge?

3. If tax is to be paid, then whether the applicant would be entitled for Input Tax Credit?

Crux: 1. Yes, the royalty paid or payable by the applicant to Nagpur Municipal Corporation (NMC) for supplying Tertiary Treated Water� to Mahagenco, by treating the Sewage Water supplied by NMC is liable to tax under the GST Law.

2. The taxes are to be paid by the applicant under reverse charge basis (RCM). Nagpur Municipal Corporation (NMC) is not liable to pay taxes on the subject transaction.

3. ITC would be available to the applicant subject to fulfillment of the conditions mentioned under sections 16 to 21 of CGST/MGST ACT, 2017.

Order

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M/s Mekorot Development & Enterprise Ltd v/s  Shri. Rajiv Magoo, Addittional Commissioner of Central Tax, (Member) And Shri. T. R. Ramnani, Joint Commissioner of State Tax, (Member)

Order dated 22/09/2021

Issue:1. Whether MJP can he considered as government entity under GST law?
2. Whether the work intended to he carried out by MDE qualifies for exemption as per Notification No.12/2017-Central Tax (Rate) dated 28.06.2017?
3. If it is concluded from the above that the supplies made or proposed to he made by MDE to MJP qualifies for exemption then the consequent question is whether MDE requires to obtain registration under GST law?

Crux: 1. Not answered since the question has been withdrawn by the applicant.
2. The work intended to be carried out by the applicant under the impugned contract with Maharashtra Jeevan Pradhikaran qualifies for exemption as per Notification No. 12/2017-Central Tax (Rate) dated 28.06.2017.
3. If the impugned supplies made or proposed to be made by the applicant to MJP are the only supplies undertaken by the applicant, in such a case, the applicant is not required to obtain registration under GST law, since the impugned supply is held to be exempt under the provisions of Notification No.12/2017-Central Tax (Rate) dated 28.06.2017. However, if the applicant is undertaking or proposes to undertake any taxable supply of goods or services or both, then in such a scenario the applicant will be required to obtain GST registration under section 22 of the GST Act, on crossing the threshold turnover limit.

Order

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M/s Rashtriya Chemicals and Fertilizers Limited v/s  Shri. Rajiv Magoo, Addittional Commissioner of Central Tax, (Member) And Shri. T. R. Ramnani, Joint Commissioner of State Tax, (Member)

Order dated 09/09/2021

Issue: 1. Whether Treated Water� obtained from STP (classifiable under Chapter 2201) will be eligible for exemption from GST by virtue of serial no. 99 of the Notification No. 02/2017- Integrated Tax (Rate) dated 28 June 2017 as Water (other than aerated, mineral, purified, distilled, medical, ionic, battery, de-mineralized and water sold in sealed container)�?

2. Whether Treated Water� obtained from STP (classifiable under Chapter 2201) is taxable at 18% by virtue of serial no. 24 of Schedule III of Notification No. 01/2017- Integrated Tax (Rate) dated 28th June 2017 (as amended) as Waters, including natural or artificial mineral waters and aerated waters, not containing added sugar or other sweetening matter nor flavoured (other than drinking water packed in 20 liters bottles)�?

Crux: 1. No, "Treated Water" obtained from STP (classifiable under Chapter 2201) will not be eligible for exemption from GST by virtue of serial no. 99 of the Exemption Notification No. 02/2017- Integrated Tax (Rate) dated 28 June 2017 (as amended).

2. Yes, Treated Water obtained from STP (classifiable under Chapter 2201) is taxable at 18% by virtue of serial no. 24 of Schedule III of Notification No.01/2017-Integrarted Tax (Rate) dated 28.06.2017 (as amended) as Waters, including natural or artificial mineral waters and aerated waters, not containing added sugar or other sweetening matter nor flavoured (other than drinking water packed in 20 litres bottles).

Order

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M/s B. G. Shirke Construction Technology Pvt. Ltd. v/s  Shri. Rajiv Magoo, Addittional Commissioner of Central Tax, (Member) And Shri. T. R. Ramnani, Joint Commissioner of State Tax, (Member)

Order dated 09/09/2021

Issue:1. Whether the managerial and leadership services provided by the Registered/Corporate Office to its group companies can be considered as supply of service�, in terms of Section 7 of CGST Act, 2017?

2. Whether the lump sum amount charged by the Registered/Corporate Office on its group companies would be liable to GST under Section 8 of CGST Act, 2017?

3. If the aforesaid activities are treated as supply of service� between distinct and related persons and GST thereon is held to be payable, whether the applicant can continue to charge certain lump sum amount, as has been done in the past, in terms of second proviso to Rule 28 of CGST Rules, 2017, as most of the recipients of such services are eligible for full credit, barring one or two related persons, who would comply with the provisions of Section 17 of CGST Act, 2017, at their respective ends?

4. If the aforesaid method of charging certain lump sum amount is not permissible, whether the applicant can adopt the valuation in terms of the provisions of Rule 31 of CGST Rules, 2017, by arriving at a proportional ratio, based on the total expenses incurred by Registered Corporate Office for supplying the aforesaid services and turnover of each of the distinct and related persons?

5. If the method of valuation under Rule 31 of CGST Rules is also not permissible, whether the applicant can adopt valuation in terms of Rule 30 of CGST Rules, 2017, by allocating related expenses at the Registered/Corporate Office in a reasonable proportion to the distinct and related persons considering turnover of each of them and adding ten percent, which would be at par with 110% of cost of provision of such services?

6. If any of the aforesaid method of valuation suggested by the applicant is not acceptable, what alternative feasible workable method of valuation that can be suggested by the advance ruling authority considering the nature of industry in which the applicant is engaged in.

7. Whether input tax credit of GST paid by the applicant is admissible to each of the distinct and related person, in a case where their supply of goods or service or both are taxable under GST law?

Crux: 1 Yes, the managerial and leadership services provided by the Registered/Corporate Office to its Group Companies can be considered as supply of service�, in terms of Section 7 of CGST Act, 2017.

2. Yes, the lump sum amount charged by the Registered/Corporate Office on its Group Companies would be liable to GST under Section 8 of CGST Act. 2017.

3. Yes, the applicant can continue to charge certain lump sum amount, as has been done in the past, in terms of second Proviso to Rule 28 of CGST Rules, 2017, as most of the recipients of such services are eligible for full credit, barring one or two related persons, who would comply with the provisions of Section 17 of CGST Act, 2017, at their respective ends.

4. Not answered in view of the answer of third question.

5. Not answered in view of the answer of third question.

6. Not answered as it is outside the preview of section 97.

7. Not answered as it is outside the preview of section 97. 

Order

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Rectify order

Order dated 15/12/2020

Issue: Whether input tax credit (ITC) available to applicant on GST charged by service provider on hiring of bus/motor vehicle having seating capacity of more than thirteen person for transportation of employees to & from workplace?

Crux:  Section 17 (5) had clearly debarred Input Tax Credit on motor vehicles or conveyances used in transport of passengers till the date of the amendment i.e. 01.02.2019. However with effect from 01.02.2019, Input Tax Credit has been allowed on leasing, renting or hiring of motor vehicles, for transportation of persons, having approved seating capacity of more than thirteen persons (including the driver).

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AAAR Order

Order dated 17/09/2020

Issue: 1. Considering the nature of transaction, under the new proposition where Liberty Translines the applicant, will be issuing the consignment note in addition to the consignment note issued by POSCO ISDC Pvt. whether the service rendered by the applicant to POSCO ISDC Pvt. Ltd. as a sub-contractor would be classified as GTA service (SAC 996791) when the service rendered by POSCO ISDC Pvt. Ltd. as the main contractor, is already classified as GTA service (SAC 996791) and is going to remain unchanged ?

2. Whether the applicant would be right in charging GST @12% under Forward Charge mechanism to POSCO ISDC Pvt. Ltd. in terms of Notification No. 20/2017-Central Tax (Rate) dated 22 August 2017 when POSCO ISDC Pvt. Ltd. as the main contractor, is already charging GST @12% under the same Notification, which is going to remain unchanged?

3. Whether POSCO ISDC Pvt. Ltd. would be eligible to claim credit of the 12% GST charged by the applicant in its invoice under Forward charge mechanism?

4. Procedurally, is it correct to have two GTA Service Providers and two consignment notes for the same movement of goods, one issued by the applicant as a sub-contractor and the other by POSCO ISDC Pvt. Ltd. as the main contractor?

Crux: AAAR uphold the advance ruling passed by the Maharashtra Advance Ruling Authority.

Order

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AAAR Order

Order dated 23/11/2020

Issue: I. Whether the classification of the impugned product, falling under TSH 2309 90 10 of the Customs Tariff Act, 1975, as adopted to the CGST Act, 2017, attracting NIL (0%) of 1GST or (0%) CGST + (0%) SGST as per the List of Exempted Goods in terms of SI. No 102 of Notification No. 02/2017 - Central Tax (Rate), dated 28.06.2017, is correct or not?
II. Whether the impugned product can be considered as waste of sugar manufacturing as being purported by the Appellant, and accordingly be classified under the Chapter Heading 2303.

Crux: I. The appellant authority uphold the Ruling passed by the MAAR, wherein it was held that the subject product, involved in the application, was rightly classified by the Appellant under chapter heading 2309, attracting NIL rate as per SI. No. 102 of the Notification No. 02/2017 C.T. (Rate), dated 28.6.2017.
II. It was held by the MAAR that the question would not come under the purview of the Advance Ruling in terms of Section 97(2) of the CGST Act. 2017, and therefore, is not liable to be answered. Thus, the appeal filed by the Appellant is. hereby, dismissed.

Order

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Rectify order

Order dated 15/12/2020

Issue: Whether applicant is entitled to avail Input tax credit under CGST/CGST Act in respect of taxes to be paid on its purchase of Paver Blocks laid on the land?

Crux:  Laying of the paver blocks cannot amount to works contract service for construction of the immovable property under section 17(5)(c) of CGST Act since, the expression construction� for the purpose of section 17(5)(c) and 17(5)(d) includes reconstruction, renovation, addition or alteration or repairs to the extent of capitalization to the said immoveable property. In the case of the applicant the expenditure on the paver block has been booked as revenue expenditure in the books of account and therefore the same will not amount to construction of immovable property. Accordingly, the input tax credit claimed by the applicant cannot be hit by restriction placed u/s. 17(5)(c) of the CGST Act.

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AAAR Order

Order dated 05/11/2020

Issue: (i) Whether the said activities carried out by the Appellant would amount to supply, and whether the same are liable to the GST.
(ii) Whether they are correctly discharging the GST liability, for which they provided the illustrative invoices raised on the members of the society.

Crux: The authority do not find any reason to interfere with the ruling passed by the Maharashtra Advance Ruling Authority, vide their Order No. GST-ARA-21/2019-20/B-34 dated 17.03.2020. Accordingly, it is held that activities carried out by the Appellant would amount to supply in terms of Section 7( 1 )(a) of the CGST Act, 2017 and the same would be liable for GST subject to the condition that the monthly subscription/contribution charged by the society from its members is more than Rs. 7500/- per month per member and the annual aggregate turnover of the society by way of supplying of services and goods is also Rs. 20 lakhs or more. Further, their second question regarding correctness of the GST liability on the basis of the illustrative invoices cannot be answered on account of the stated reasons

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AAAR Order

Order dated 20/07/2020

Issue: whether the appellant is eligible for the input tax credit of lift installation charges paid to Fujitec, if it is booked as Capital expenditure in their books without availing the depreciation on 18% GST charged by Fujitec?

Crux: AAAR do not find any reason to interfere with the ruling passed by the Maharashtra Advance Ruling Authority and Accordingly, it is held that the appellant will not be eligible to avail the ITC in respect of the GST paid on lift installation charges paid to the lift contractor, in terms of section 16(2)(b) read with Section 17(5)(c) and 17(5)(d) of the CGST Act, 2017.

Order

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Notification No. 45/2017 Central Tax (Rate)

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Notification No. 01/2017 Central Tax (Rate)

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AAAR Order

Order dt. 26/08/2020

Issue:-1. Whether GST is livable on sale of Transferable Development Rights (TDR)/ Floor Space Index (FSI) received as consideration for surrendering the joint rights in land in terms of Development Control Regulations and granted in light of the article of agreement dated 18th December 2017 entered between the Appellant and Pune Municipal Corporation (PMC) read with Development Control Regulations.
2. If yes, what will be the classification under GST and what will be the applicable rate of GST?

Crux: AAAR do not find any reason to interfere with the ruling passed by the advance ruling authority and accordingly, it is held that the sale of TDR/FSI would be leviable to GST under Heading 9972, at the rate of 18% (9% CGST + 9% SGST), as prescribed under the entry at serial no.16 (iii) of Notification no.11/2017-Central Tax (Rate), dated 28-06-2017.

Order

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Notification No. 11/2017 Central Tax (Rate)

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Notification No. 11/2017 Central Tax (Rate)

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Notification No. 11/2017 Central Tax (Rate)

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Notification No. 11/2017 Central Tax (Rate)

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Section 7 of CGST

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Notification No. 12/2017 Central Tax (Rate)

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AAAR Order

Order dt. 05/02/2019

Issue:-Whether marine paints, supplied by the Appellant, would be considered to be part of ship and accordingly, be then classified under SI. No. 252 of the Schedule I of the Notification No. 1/2017 of Central Tax (Rates) dated 28.06.2017.

Crux: AAAR do not find any reason to interfere with the ruling pronounced by the Advance Ruling Authority that Marine paints supplied by the applicant, are clearly consumable items and not parts and accordingly not covered under Serial No.252 of Schedule 1 of Notification No 1/2017 of Integrated Tax (Rates) dated June 28, 2017.

Order

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AAAR Order

Order dt. 07/02/2020

Issue:-1. Whether the contract entered into with DMRC for supply, erection, installation, commissioning and testing of UPS system qualifies as a supply of works contract under Section 2(119) of the CGST Act?
2. If yes, whether such supply made to DMRC would be taxable at the rate of 12% in terms of Sr. no. 3(v) of Notification No. 11/2017-C. T. (Rate), as amended w.e.f. 25.1.2018?

Crux: AAAR modify the advance ruling of AAR to the extent that the supplies under question would not be considered as Composite Supply� in terms of Section 2(30) read with Section 2(90) of the CGST Act, 2017.

Order

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Notification No. 11/2017 Central Tax (Rate)

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AAAR Order

Order dt. 04/06/2020

Issue:-whether receipt of prize money from horse race conducting entities, in the event horse owned by the applicant wins the race, would amount to ‘supply under section 7 of the Central Goods and Service Tax Act, 2017 or not and consequently, liable to GST or not?

Crux: AAAR set aside the advance ruling issued by AAR, and held that prize money/ stakes will not be subject to GST in the absence of any supply. Accordingly, the Applicant- Respondent is also not entitled to avail any ITC in accordance with the provisions of section 17 (2) of the CGST Act, 2017.

Order

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Section 7 of CGST

156

Summary

Notification No. 12/2017 Central Tax (Rate)

Summary

Notification No. 01/2017 Central Tax (Rate)

M/s. Tejas Constructions & Infrastructure Pvt Ltd. v/s Shri B. V. Borhade, Joint Commissioner of State Tax, Shri B. Timothy ,Addl. Commissioner of Central Tax.

Order dated 23/08/2019

Issue:1. Whether the contractor can charge GST on the value of material supplied by the recipient of service?
2. What should be the mechanism to calculate the taxable value as per section 15 of the Act?

Crux: 1.Not Answered, As the question raised by the applicant as to whether they can charge GST on the same is irrelevant. As the applicant on this issue of supply of concerned materials, is not a supplier of goods/services and as per the provisions of section 95 of the CGST Act, they cannot raise this question.
2.Tax is payable on the entire contract value as per certificate issued by the Architect i.e. R A Bill without deducting the value of Cement, Mild Steel, Tor Steel and Structural Steel provided by the contractee.

Order

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Section 15 of CGST

Order dated 03/08/2019

Issue:1.Whether on facts and circumstances of the case, the product "Dialyzer" be treated as 'Disposable sterilized dialyzer or micro barrier of artificial kidney' as mentioned under Entry No. 255 of Schedule I to Notification No. 1/2017-Central Tax (Rate), dated 28 June 2017 and Notification Number 1/2017-Integrated Tax (Rate), dated 28 June 2017 (collectively referred to as the 'Rate Notifications')?
2. If the said product "Dialyzer" falls under Entry No. 255 of Schedule I to the Rate Notifications, whether it would be classified under Chapter 90 (i.e. Tariff item 9018 90 31) or Chapter 84 (i.e. Tariff item 8421 29 00)?

Crux: 1. The product "Dialyzer" can be treated as 'Disposable sterilized dialyzer or micro barrier of artificial kidney as mentioned under Entry No. 255 of Schedule I to the Rates Notifications.
2.The product is classifiable in the tariff item 9018 90 31.

Order

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Notification No. 01/2017 Central Tax (Rate)

Order dated 23/08/2019

Issue:1. Whether the said Contract is covered under Sl. No. 3A, Chapter No 99 as per Notification No 2/2018 -Central Tax (Rate) dated 25/01/2018, w.e.f  25/01/2018?
2. Whether the said contract is covered under the term "Earth Work" and therefore covered under Sl. No - Chapter No. 9954 as per Notification No. 31/2017 - Central Tax (Rate) dated 13/10/2017?
3. If we are covered under SL No.3 chapter No. 9954 as per Notification No.31/2017 - Central Tax (Rate) dated 13/10/2017, w.e.f. 13/10/2017 then what is the meaning of "Earthwork"?

Crux: 1.The Contract is not covered under Sl No -3A , Chapter No 99 as per Notification No2/2018 -Central Tax (Rate)
2.The Contract is  not covered under Earth Work and therefore Not covered under Heading 9954 as per Notification No. 31/2017-CT(R)
3.The Question is not Answered as contract is not considered as Earth Work

Order

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AAAR Order

Order dt. 20/01/2020

Issue:-1. Whether the said contract is covered under serial no  3A, Chapter No 99 as per Notification no. 02/2018-Central Tax (rate) dated 25th January 2018, w.e.f. 25th January 2018?
2. Whether the said contract is covered under the term Earth Work� and the covered under serial no. - Chapter No. 9954 as per Notification no. 31/2017-Central Tax (Rate) dated 13th October 2017?
3. If appellants are covered under serial no. 3 Chapter 995 as per Notification no. 31/2017-Central Tax (Rate) dated 13th October 2017 w.e.f. 13th October 2017, then what is the meaning of Earth Work

Crux: 1. No, the said contract is not covered under serial no – 3A, Chapter No 99 as per Notification no. 02/2018-Central Tax (rate) dated 25th January 2018, w.e.f. 25th January 2018.
2. Yes, the said contract is covered under the term “Earth Work” and therefore covered under serial no.3-Chapter No. 9954 as per Notification No.31/2017-Central Tax (Rate) dated 13/10/2017.
3. In view of answers to question no. 1, this question is already answered.

Order

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Notification No. 02/2018 Central Tax (Rate)

Notification No. 31/2017 Central Tax (Rate)

Order dated 23/08/2019

Issue: (a) Whether the services provided by the Applicant an be considered to be a composite supply as defined under section 2(30) of the Central Goods and Services Tax Act, 2017 or a mixed supply defined under section 2(74) of the Central Goods and Services Tax Act, 2017?
(b) If the services provided by Applicants are considered as composite supply, whether conduct of examination can be considered as principal supply?
(c) If the above services are considered as composite supply and conduct of examination is considered as principal supply, whether the exemption provided under entry 66 of Notification 12/2017 - Central Tax (Rate) as amended vide Notification No 02/2018 -Central Tax (Rate) vv.e.f. 25.01.2018 shall be granted?
(d) In case the exemption is applicable to the Applicant, whether the exemption shall be applicable in respect of all agreements entered by Applicant or only applicable to services provided to educational institution?

Crux: a) The services provided by Applicant can be considered to be a composite supply as defined under Sec. 2(30) of the CGST Act.
b) The conduct of Examination can be considered as principal supply.
c) The Exemption under Entry No. 66 will be available to them only when the provisions of the said notification are satisfied by the applicant.
d) The Exemption under Entry No. 66 will available to them only in respect of Work Order issued by the University of Delhi.

Order

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Notification No. 12/2017 Central Tax (Rate)

Order dated 23/08/2019

Issue:1] Applicability of GST @ 5% (CGST of 2.5% and SCGT of 2.5%) or IGST @ 5% for the above mentioned Marine Duty hydraulic equipment, which is being designed and custom built by us for being fitted on a Barge falling under Serial No 246 of Schedule I of GST Notification No 1/2017 dated 28th June 2017, and its Parts falling under Serial No. 252 of Schedule 1 of GST Notification No. 1/2017, which are essentially required for the functioning of barge.
2] Whether we can claim input tax credit in respect of indigenous and imported inputs which are being used for manufacture of the above equipment, if GST on the equipment manufactured by us is determined as 5% in terms of Notification No 1/2017 dated 28th June 2017.

Crux: 1.Marine Duty Hydraulic Cylinders and Hydraulic Power Packs, can be considered as an integral part of such barge and therefore would fall under Sr. No. 252 of Schedule I of GST Notification No. 1/2017 as Parts of goods of headings 8901. GST @ 5% (CGST of 2.5% and SCGT of 2.5%) or IGST @ 5% [under Serial No. 252 of Schedule I of GST Notification No. 1/2017], will be applicable for the above mentioned Marine Duty hydraulic equipment, which is being designed and custom built 'for being fitted on a Barge falling under Serial No 246 of Schedule. I of GST Notification No 1/2017.
2.Subject to satisfying the provisions of Chapter V, the applicant can claim input tax credit in such a situation.

Order

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Notification No. 01/2017 Central Tax (Rate)

Order dated 23/08/2019

Issue:1. Whether we need to apply for GST registration as the services provided are export of services?
2. Whether can we do supply of such services under LUT?
3. Whether GST is applicable on the reimbursement of expenses such as salaries, rent, office expenses, traveling cost etc.?
4. Whether GST will be applicable on the management fees charged by us to the Company for managing the job outsourced to us?

Crux: 1&2. Withdrawn by the applicant
3.Applicant is not a pure Agent , Hence, GST is applicable on the reimbursement of expenses such as salaries, rent, office expenses, traveling cost etc.
4. Applicant is an Intermediary, Hence, GST will be applicable on the management fees charged by the applicant.

Order

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Section 13 of IGST

Section 15 of CGST

Order dated 23/08/2019

Issue: Whether the construction service provided by M/S. Yash Nirman Engineers and Contractors to M/s. Lakhani Builders Pvt. Ltd under the project " La-Riveria" qualifies for application of lower rate of CGST@6% and SGST @ 6% as provided in SI. No: 3- Item (V) - sub item(da) vide notification no: 01/2018-CT (Rate) dated 25-01-2018?

Crux: The project undertaken by them falls under the definition of Affordable Housing . Hence , qualifies for application of lower rate of CGST@6% and SGST @ 6% as provided in SI. No: 3- Item (V) - sub item (da) vide notification no: 01/2018-CT (Rate) dated 25-01-2018.

Order

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Notification No. 01/2018 Central Tax (Rate)

Order dated 03/08/2019

Issue: 1. Whether contributions from the members in the administration account, recovered for expending the same for the weekly and other meetings and other petty administrative expenses incurred including the expenses for the location and light refreshments, amounts to or results in a supply, within the meaning of supply?
2. If answer to question no.1 is affirmative, whether it will be classified as supply of goods or services?
3. Whether the applicant would be a Taxable Person under the provisions of the Act?
4. If answer to question no.3 is affirmative, who shall be person responsible under GST, as office bearers keep on changing every year?
5. Whether the said collection of funds under common pool and spending back on the same said contributors, would entail ‘supply’ as defined in the law.
6. If answer to Question no.5 is affirmative, whether the same would be supply of goods or services?


Crux: 1.Contributions from the members in the administration account amounts to supply as defined in Section 7 of CGST Act 2017
2.It will be classified as supply of services.
3.Yes, the applicant would be treated as taxable person, subject to provisions of Section 22 of the GST Act.
4.The applicant is liable to pay GST and not the office bearers.
5. Yes, the collection of funds under common pool and spending back on the same contributors, would amounts to ‘supply’ as defined in the law.
6.It will be classified as supply of services

Order

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AAAR Order

Order dt. 11/12/2019

Issue:-1. Whether contributions from the members in the administration account, recovered for expending the same for the weekly and other meetings and other petty administrative expenses incurred including the expenses for the location and light refreshments, amounts to or results in a supply, within the meaning of supply?
2. If answer to question no.1 is affirmative, whether it will be classified as supply of goods or services?
3. Whether the applicant would be a Taxable Person under the provisions of the Act?
4. If answer to question no.3 is affirmative, who shall be person responsible under GST, as office bearers keep on changing every year?
5. Whether the said collection of funds under common pool and spending back on the same said contributors, would entail ‘supply’ as defined in the law.
6. If answer to Question no.5 is affirmative, whether the same would be supply of goods or services?

Crux: AAAR held that the amount collected as membership subscription and admission fees from members is not liable to GST as supply of services.

Order

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Section 7 of CGST

Schedule II of CGST

Section 22 of CGST

Order dated 23/08/2019

Issue: whether consideration paid as subscription or contribution towards recurring or capital expenses or reimbursement or by whatever name called to National Institute of Bank Management (NIBM); a society registered under Societies Registration Act, 1860 by its members (being Banks) for its recurring and non-recurring expenses is leviable to GST.

Crux: The contribution received by the applicant is consideration for the entire gamut of services supplied by them and GST is payable on such contributions received.

Order

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Section 7 of CGST

Order dated 15/06/2019

Issue: 1) Whether this supply will fall under Schedule III of CGST Act.
2) Whether the supply will be termed as Exports of Goods. If No, then what will be the supply, whether Intra State or Inter State and which Tax will be levied CGST and SGST or IGST “.

Crux: 1. Supply from Bonded warehouse will fall under Schedule III of CGST Act and exempted from GST and supply from Non-Bonded warehouse will not fall under Schedule III of CGST Act and therefore not exempted from GST
2. Not answered.

Order

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Schedule III of CGST

Order dated 13/06/2019

Issue: Whether the contract from Nagpur Environmental Services Ltd (NESL) Nagpur (a 100% subsidiary of the Nagpur Municipal Corporation, Nagpur) for providing services for the management of Non-Network Tanker with the help of GPRS system at Nagpur would be exempt from GST since it falls under the various exempt services in the article 243 W of the constitution of India as well as services rendered to a local authority? 

Crux: Applicant is providing pure services to local authority and is squarely covered by Entry no.3 of Notification No. 12/2017- CT (Rate) dated 28th June, 2017

Order

Summary
 

Notification No. 12/2017 Central Tax (Rate)

Order dated 10/06/2019

Issue: 1.Whether online tendering to be considered as Supply of Goods or Supply of Services.
2.Whether offline tendering to be considered as Supply of Goods or Supply of Services.
3.Under which tariff head the Online Tendering should get taxed.
4.Under which tariff head the Offline Tendering should get taxed.
5.If tendering is service then whether it will be considered as administrative service or specific service.

Crux: 1.Online tendering will be considered as Supply of Services
2.Offline tendering in its entirety involving sale of form, payment of tender fees and submission of bids etc. will be considered as Supply of Services.
3.Online Tendering should get taxed under services heading 9997.
4.Offline Tendering will be treated as supply of service under services heading 9997.
5.The tendering will be covered under the residual Services Heading 9997

Order

Summary

Order dated 10/06/2019

Issue: classification of Instruments Cluster Whether Fall Under 8708 or 9026/9029.

Crux: Instrument Cluster is covered under HSN 8708, as parts of motor vehicles.

Order

Summary

Notification No. 01/2017 Central Tax (Rate)

Order dated 10/06/2019

Issue: Determining classification and applicable rate of goods and services tax for the following products:
(i) Door-handle of motor vehicle;
(ii) Fittings made of plastic for motor vehicle’s doors such as bracket, housing, bracket housing, stator, gasket; and
(iii) Glove box locking.

Crux: The goods mentioned above are classifiable under Chapter 3926 and will be taxable to GST at the rate applicable that heading.

Order

Summary

Notification No. 01/2017 Central Tax (Rate)

Order dated 01/06/2019

Issue:1) Whether the Marketing services to be supplied by the Applicant under the Foreign Immigration Advisor to the Consultant Manager constitutes a supply of 'Support services' classified under SAC 9985 or 'Intermediary service' classifiable under SAC 9961 /9962 or any other heading'
2) Whether the Handholding services to be supplied by the Applicant under the Foreign Immigration Advisor Agreement constitute a supply of 'Support services' falling under SAC 9985 or 'Intermediary service' classifiable under SAC 9961 /9962 or any other heading'
3) Whether the Marketing services to be provided by the Applicant will be an export of services as defined under Section 2(6) of the Integrated Goods and Services Tax Act 2017'
4) Whether the Handholding services to be provided by the Applicant will be an export of services as defined under Section 2(6) of the Integrated Goods and Services Tax Act 2017'

Crux: 1.The services to be supplied by the Applicant under the Foreign Immigration Advisor to the Consultant Manager constitutes a supply of 'Intermediary services' classified under SAC 9985.
2.The Hand-holding services to be supplied by the Applicant under the Foreign Immigration Advisor to the Consultant Manager constitutes a supply of 'intermediary services'.
3.The applicant is providing intermediary service in the name of marketing services and not 'support service' as being claimed by the applicant and the said services does not qualify to be an export of service
4.The applicant is providing intermediary service in the name of hand holding service and not 'support service' as being claimed by the applicant and the said services does not qualify to be an export of service

Order

Summary

AAAR Order

Order dated 20/11/2019

Issue: 1. Whether the Marketing services to be supplied by the appellant under the proposed agreement would constitute supply of  Gujarat  Gujarat Support services Gujarat  classified under SAC 9985 or  Gujarat  Gujarat Intermediary service Gujarat  classifiable under SAC 9961 / 9962 or any other heading?
2. Whether the Handholding services to be supplied by the appellant under the proposed agreement would constitute supply of  Gujarat  Gujarat Support services Gujarat  falling under SAC 9985 or  Gujarat  Gujarat Intermediary service Gujarat  classifiable under SAC 9961 / 9962 or any other heading?
3. Whether the Marketing services to be provided by the appellant will be an export of services as defined under Section 2(6) of the IGST Act 2017?
4. Whether the Handholding services to be provided by the appellant will be an export of services as defined under Section 2(6) of the IGST Act 2017?

Crux: AAAR held that the entire gamut of activities performed by the appellant in terms of the subject agreement, are those of an intermediary, which would be classified under the heading 9997. As regards the issue of export of the services provided by the appellant, it is held that advance ruling in this issue cannot be passed as the same is beyond our jurisdiction.

Order

Summary

Order dated 24/05/2019

Issue:  Whether the activity of merely printing or reproducing the content given by the photographers / retail customers on pen drive, CD, memory card or any other storage media will be classifiable under Service Code 998912 or 998386?

Crux: The activity of merely printing or reproducing the content given by the photographers / retail customers on pen drive, CD, memory card or any other storage media will be classifiable under Service Code 998386 and liable to tax @18% ( 9 % each CGST and MGST).

Order

Summary

Circular No. 84/03/2019-GST

Notification No. 11/2017 Central Tax (Rate)

Order dated 24/05/2019

Issue: 1.Whether The transaction would be classifiable to cover under the definition of "works contact” liable to CGST/SGST/IGST covered under Sr. No 3 Item 3 of Notification No 20/2017 (Central Tax Rate) dated 22/08/2017.
2. The transaction is Composite supply liable to tax at the rate applicable to Air-Conditioners which are the principal goods involved in the transaction under Schedule IV, Sr. No 119 of Notification No 1/2017 (Central Tax Rate) dated 28/06/2017.

Crux: The GST Tariff that Air Conditioner units falling under Chapter 8415 are taxable @28% and covered under Schedule IV,Sr. no 119 of notification No 1/2017 (C.T. Rate) dated 28/06/2017.Hence the principal supply in their composite supply being goods as described under heading 8537, the applicant is liable to pay GST on the whole contract @ 28%.

Order

Summary

AAAR Order

Order dated 11/11/2019

Issue: 1.Whether The transaction would be classifiable to cover under the definition of "works contact” liable to CGST/SGST/IGST covered under Sr. No 3 Item 3 of Notification No 20/2017 (Central Tax Rate) dated 22/08/2017.
2. The transaction is Composite supply liable to tax at the rate applicable to Air-Conditioners which are the principal goods involved in the transaction under Schedule IV, Sr. No 119 of Notification No 1/2017 (Central Tax Rate) dated 28/06/2017.

Crux: AAAR uphold the order of the advance ruling authority on both the questions

Order

Summary

Order dated 24/05/2019

Issue: 1. Whether the services provided to Visvesvaraya National Institute of Technology, Nagpur will qualify for exemption under Serial No. 66 of Notification No. 12/2017 – Central Tax (Rate) dated 28th June 2017, considering it to be an educational Institution.
2. Whether rate of tax on services provided to Visvesvaraya National Institute of Technology, Nagpur (VNIT) is nil as per Serial no 3 of Notification No 12/2017-Central Tax (Rate) dated 28th June 2017.

Crux:1.The applicant will not fall under the definition of Educational Institution , Hence the services are not exempt from payment of GST.
2.The applicant will not fall under the definition of Government , Hence the services are not exempt from payment of GST.

Order

Summary

Notification No. 12/2017 Central Tax (Rate)

Order dated 21/05/2019

Issue: 1. Whether the supply of medicines, surgical items, implants, consumables and other allied items provided by the hospital through the hospital owned pharmacy, as well as food, room on rent to the in-patients is part of composite supply of health care treatment; and hence not taxable under CGST/SGST?
2. Whether the supply of medicines, surgical items, implants, consumables and other allied items provided by the hospital through the hospital owned pharmacy to the out-patients, is part of composite supply of health care treatment; and hence not taxable under CGST/SGST?

Crux: 1.The supply of medicines, surgical items, implants, consumables and other allied items provided by the hospital through the hospital owned pharmacy, as well as food, room on rent to the in-patients is part of composite supply of health care treatment and hence not taxable under GST Laws.
2.The supply of medicines, surgical items, implants, consumables and other allied items, if purchased by the out-patient from the hospital pharmacy, provided by the hospital through the hospital owned pharmacy to the out-patients, will not be a part of composite supply of health care treatment; and hence will be taxable under CGST/SGST.

Order

Summary

Notification No. 12/2017 Central Tax (Rate)

Order dated 15/05/2019

Issue: Whether Steel Mugs with a plastic outer body would be classified under SI. No 184 of Schedule II of Notification No 1/2017 of Central Tax (Rate) dated 28th June, 2017 (as amended)?

Crux: Steel Mugs with plastic body is covered under Sr. No. 184 of Schedule II of Notification 1/2017 Central Tax (Rate) dated 28th June, 2017.

Order

Summary

Notification No. 01/2017 Central Tax (Rate)

Order dated 04/05/2019

Issue: i. Whether the applicant, a Charitable Society having the main object and factually engaged in imparting Medical Education, satisfying all the criteria of “Educational Institution”, can be said to be engaged in the business so as to cast an obligation upon it to comply with the provisions of Central Goods and Service Tax Act, 2017 and Maharashtra Goods and Service Tax Act, 2017 in totality.

ii. Whether the applicant, a Charitable Society having the main object and factually engaged in imparting Medical Education, satisfying all the criteria of “Educational Institution” is liable for registration under the provisions of section 22 of the Central Goods and Service Tax Act, 2017 and Maharashtra Goods and Service Tax Act, 2017 or it can remain outside the preview of registration in view of the provisions of section 23 of the said act as there is no Taxable supply.

iii. In a situation if above questions are answered against the contention of the applicant institution then following further questions are being raised for the kind consideration by the Honourable Bench.-
a. Whether the fees and other charges received from students and recoupment charges received from patients (who is an essential clinical material for education laboratory) would constitute as “outward supply” as defined in section 2 (83) of The Central Goods and Service Tax Act, 2017 and Maharashtra Goods and Service Tax Act, 2017 and if yes then whether it will fall in classification entry at Sr. No 66 or the portion of   nominal amount received from patients (who is an essential clinical material for education laboratory) at Sr. No. 74 in terms of Notification 12/2017 Central Tax-dt. 28/6/2017.
b. Whether the cost of Medicines and Consumables recovered from OPD patients along with nominal charges collected for Diagnosing by the pathological investigations, other investigation such as CT-Scan, MRI,   Colour Doppler, Angiography, Gastroscopy, Sonography during the course of diagnosis and treatment of disease would fall within the meaning of “composite supply” qualifying for exemption under the category of “educational and/or health care services.”
c. Whether the nominal charges received from patients (who is an essential clinical materials for education laboratory) towards an “Unparallel Health Insurance Scheme” to retain their flow at one end for the purpose of imparting medical education as a result to provide them the benefit of concessional rates for investigations and treatment at other end would fall within the meaning of “supply” eligible for exemption under the category of “educational and/or health care services.”
d. Whether the nominal amount received for making space available for essential facilities needed by the students and staffs such as Banking, Parking, and Refreshment which are support activities for attainment of main activities and further amount received on account of disposal of wastage would fall within the meaning of ”supply” qualifying for exemption under the category of ”educational and/or health care services.”

Crux:1.MGIMS which appears to be engaged in imparting medical education and not the applicant. The applicant has entered into a joint project with the State and Central Governments to form MGIMS which is an entity different from that of the applicant. Hence, the applicant cannot be said to be satisfying all the criteria of an “Educational Institution”.\
2.As applicant has been found to be not an educational institution, the applicant falls within the scope of Sections 22 or 24 of the GST Act, 2017, they are liable to obtain registration if they provide taxable services and their turnover exceeds the threshold limit prescribed for registration.
3.Rejected as not maintainable.

Order

Summary

AAAR Order

Order dated 13/12/2019

Issue: Whether the applicant, a Charitable Society having the main object and factually engaged in imparting Medical Education, satisfying all the criteria of “Educational Institution”, can be said to be engaged in the business so as to cast an obligation upon it to comply with the provisions of Central Goods and Service Tax Act, 2017 and Maharashtra Goods and Service Tax Act, 2017 in totality.

ii. Whether the applicant, a Charitable Society having the main object and factually engaged in imparting Medical Education, satisfying all the criteria of “Educational Institution” is liable for registration under the provisions of section 22 of the Central Goods and Service Tax Act, 2017 and Maharashtra Goods and Service Tax Act, 2017 or it can remain outside the preview of registration in view of the provisions of section 23 of the said act as there is no Taxable supply.

iii. In a situation if above questions are answered against the contention of the applicant institution then following further questions are being raised for the kind consideration by the Honourable Bench.-
a. Whether the fees and other charges received from students and recoupment charges received from patients (who is an essential clinical material for education laboratory) would constitute as “outward supply” as defined in section 2 (83) of The Central Goods and Service Tax Act, 2017 and Maharashtra Goods and Service Tax Act, 2017 and if yes then whether it will fall in classification entry at Sr. No 66 or the portion of   nominal amount received from patients (who is an essential clinical material for education laboratory) at Sr. No. 74 in terms of Notification 12/2017 Central Tax-dt. 28/6/2017.
b. Whether the cost of Medicines and Consumables recovered from OPD patients along with nominal charges collected for Diagnosing by the pathological investigations, other investigation such as CT-Scan, MRI,   Colour Doppler, Angiography, Gastroscopy, Sonography during the course of diagnosis and treatment of disease would fall within the meaning of “composite supply” qualifying for exemption under the category of “educational and/or health care services.”
c. Whether the nominal charges received from patients (who is an essential clinical materials for education laboratory) towards an “Unparallel Health Insurance Scheme” to retain their flow at one end for the purpose of imparting medical education as a result to provide them the benefit of concessional rates for investigations and treatment at other end would fall within the meaning of “supply” eligible for exemption under the category of “educational and/or health care services.”
d. Whether the nominal amount received for making space available for essential facilities needed by the students and staffs such as Banking, Parking, and Refreshment which are support activities for attainment of main activities and further amount received on account of disposal of wastage would fall within the meaning of ”supply” qualifying for exemption under the category of ”educational and/or health care services.”

Crux: Now, when it has been established that the medical institute, MGIMS, which is engaged in providing medical education, is separate and distinct entity from the appellant society so far as the applicability of the GST law is concerned, the questions asked by the appellant are answered as under:
1. Since, the appellant society does not provide the said Medical education, the question raised above is not proper and correct, and hence not answered.
2. The above question is not answered due to the reasons mentioned in the question 1 above.
3. (a) The above question is not maintainable in terms of the Clause (a) of section 95 of the CGST Act, 2017, as the transaction with respect to which the Appellant has asked the question, is not pertaining to the Appellant but same is related to the medical institute, i.e., MGIMS.
(b) The above question is not maintainable in terms of the Clause (a) of section 95 of the CGST Act, 2017, as the transaction with respect to which the Appellant has asked the question, is not pertaining to the Appellant.
(c) The above question is not maintainable in terms of the Clause (a) of section 95 of the CGST Act, 2017, as the transaction with respect to which the Appellant has asked the question, is not pertaining to the Appellant.
(d) The above question is not maintainable in terms of the Clause (a) of section 95 of the CGST Act, 2017, as the transaction with respect to which the Appellant has asked the question, is not pertaining to the Appellant.

Order

Summary

Section 22 of CGST

Order dated 08/04/2019

Issue: Applicable GST Rate on operating gaming zone in one of leading malls in Mumbai?

Crux: The GST rate on operating gaming zone in one of leading malls in Mumbai is @ 28 % w.e.f. 25.1.2018.

Order

Summary

AAAR Order

Order dated 21/11/2019

Issue: Applicable GST Rate on operating gaming zone in one of leading malls in Mumbai?

Crux: AAAR hereby, uphold the ruling pronounced by the advance ruling authority, wherein it was held that the gaming zone operated by the appellant in the mall premises would attract GST at the rate of 28%(CGST @14% + SGST@14%) in terms of the entry (iiia) of serial no.34 of the Notification no.11/2017 -Central Tax (Rate) dated 28.06.2017 as amended by the Notification No. 1/2018-C.T. (Rate) dated 25.01.2018.

Order

Summary

Notification No. 11/2017 Central Tax (Rate)

Notification No. 1/2018 Central Tax (Rate)

Order dated 24/04/2019

Issue:  The Applicant though eligible to claim for refund of inverted duty structure under Section 54(3) of the CGST Act, wishes to understand the in-principle applicability of Notification 21 and 26 in as much whether the same allow for refund of ITC availed on input services (and remaining unutilized) in whole or part thereof.
Where the answer to above is negative, the Applicant wishes to understand how does the Notification 21 and 26 apply in a scenario where factually following financials may exist:

Crux: 1.Both the Notifications Notification No 21/2018 – Central Tax (Rate) dated April 18, 2018 and Notification No. 26/2018-Central Tax dated 13.06.2018 21 do apply to the Applicant which prescribe the method for carrying out provisions of Section 54 (3) of the CGST Act, 2017 and therefore do not allow refund of ITC availed on input services (and remaining unutilized) in whole or part thereof, in view of the definition of ‘input’ contained in the sub-section (59) of Section 2 of the GST Act, 2017 and the definition of ‘Net ITC’ contained in the Notification No. 26/2018-Central Tax dated 13.06.2018.
2.This question pertains to formulae for calculation of refund and hence does not fall within the purview of Section 97 of the CGST Act and is therefore not answered.

Order

Summary
 

Section 54 of CGST

Order dated 02/04/2019

Issue: Whether the transaction between Applicant and lessee is outside the purview of GST as a transaction in immovable property?
If not, what is the appropriate classification and rate of GST?

Crux: The transaction between Applicant and lessee is taxable under GST. It is not a transaction in immovable property. The transaction is a composite supply of works contract as defined in clause 119 of Section 2 of the CGST Act, 2017 and classifiable under C H 9954 (ii) and will attract tax @ 18%.

Order

Summary

AAAR Order

Order dated 24/10/2019

Issue: whether the activity of granting long term lease of the residential apartments would amount to transfer of immovable property� and hence not liable to GST? If not, what is the appropriate classification and applicable GST rate for the said activity?

Crux: AAAR agree with the findings and order of the Advance ruling authority and find no reason to deviate from the conclusions derived by them.

Order

Summary

Section 7 of CGST

Order dated 24/05/2019

Issue:1.Whether on the facts and circumstances of the case and as per the law, the applicant is not eligible to avail/utilize the input tax credit of the taxes paid in terms of section 16 read with section 17 of the IMG ST ACT / CGST ACT (CGST/ SGST / IGST) to the supplier of goods/ services on the construction of the break water wall, which is an important and integral part of the existing jetty and very much required for the purpose of safety and longevity of the jetty and it imperative for making the existing jetty as fully workable as an all-weather jetty and hence improves the operational efficiency of the applicant.
2. Whether on the facts and circumstances of the case, as per the law and scope of work, the works contract services which the KLPL intends to procure is not predominantly earth work (that is, constituting more than 75 percent, of the value of the works contract) and the services of the works contract by the contractor is covered under item (vii) of serial No.3 of Table of the Notification No. 11/2017-Central Tax (Rate) dated 28th June, 2017 as amended by Notification No. 31/2017 - Central Tax (Rate) dated I3th October, 2017.

Crux: 1.Applicant is not eligible to avail ITC on the construction of the break water wall.
2.As per the Provision of Section 95 of GST Act, the issue is not within the purview of this authority and therefore second question is not being answered.

Order

Summary

AAAR Order

Order dated 06/11/2019

Issue: whether the appellant is eligible for taking ITC on construction of the said Breakwater, which is an important and integral part of the existing jetty and very much required for the purpose of safety and longevity of the jetty and it imperative for making the existing jetty as fully workable as an all-weather jetty and hence improves the operational efficiency of the appellant.

Crux: AAAR confirmed the order passed by the authority for advance ruling.

Order

Summary

Section 17 of CGST

Section 95 of CGST

Order dated 14/05/2019

Issue: (i) Whether the extra packs of Cigarettes would again be leviable to GST?
(ii) If yes, the taxable value which can be attributed to such extra packs of Cigarettes for levy of GST?
(iii) Whether extra packs of Cigarettes would be considered as exempt supplies or free samples and hence attract the provisions of Section 17 (2) of the CGST Act, 2017 read with Rule 42 of the CGST Rules, 2017 or clause (h) of Section 17 (5) of the CGST Act, 2017?

Crux:
(i) It will not be an individual supply of free goods but a case of two or more individual supplies where a single price is being charged for the entire supply. Hence GST is not leviable again on extra packs.
(ii) Not answered in view of answer to Question No. 1 above.
(iii) The extra packs of cigarettes will not be considered as exempt supplies or free samples and hence the provisions of 170 read with Rule 42 of the CGST Rules, 017 or clause (h) of Section 17 (5) of the CGST Act, 2017 will not be applicable.

Order

Summary
 

Section 17 of CGST

Rule 42 of CGST

Order dated 09/05/2019

Issue: A.l Whether Threaded metal nuts which function same as standard nut, merits classification under the Tariff item 731816 00 and not under Tariff item 8708 99 00?
A.2 Whether Plastic rivets not only being capable of being used in the fitment of trims on the body of a motor vehicle but in other industries for similar functionality, merits classification under Tariff item 3926 90 99 and not under Tariff item 8708 99 00?
A.3 Whether Quick Adapter not only capable of being used to connect pipes and tubes in the interior of a motor vehicle, but also for similar functionality in other industries, merit classification under the Tariff item 3917 40 00 and not under Tariff item 8708 99 00?
A.4 Whether Plastic pipe clips merits classification under the Tariff item 3926 90 99 and not under the Tariff item 8708 99 00?
A.5 Whether Brackets and Channels merits classification under Tariff item 8708 99 00 despite being "parts of general use" made of plastic, and not under Chapter 39 of the First Schedule?
A.6 Whether Non-Return Valve merits classification under Tariff item 8481 30 00 as it is capable of being used in the internal liquid lines of various machineries and equipment, and not under Tariff item 8708 99 00?
A.7 Whether Metal U Clips merits classification under the Tariff item 8305 90 20 as it is not only capable of being used in the interior or exterior of a motor vehicle to join panels but in other machineries and equipment, and not under the Tariff entry 8708 99 00?
A.8 Whether Fasteners and Spoilers merits classification under Tariff item 8708 29 00 which pertains to parts and accessories of the body of a motor vehicle and thus provides the more specific description of the Fasteners and Spoilers, in comparison to Tariff entry 8708 99 00, which pertains to the residual entry under Heading 8708?
A.9 Whether Bracket merits classification under Tariff item 8708 99 00 and not under Tariff item 8708 29 00, which pertains to a part or accessory found on the exterior of a motor vehicle.
A.10 Whether the Subject Product merits classification under Tariff item 7220 20 90 despite being capable of being classified under Chapter 87 of the First Schedule, and not under Tariff item 8708 99 00.

Crux: Since the subject proposed transaction is itself not a 'supply' under the GST Act, in view of the provisions of Section 95 read with Section 97 of the GST Act, the issue is not within the purview of this authority.

Order

Summary
 

Section 7 of CGST

Section 95 of CGST

Section 97 of CGST

Order dated 04/05/2019

Issue: Whether the "Clinical Research" services proposed to be provided by them to entities located outside India is liable to Central Goods and Services Tax and State Goods and Services Tax or Integrated Goods and Services Tax or is it eligible to be treated as an export of service under Section 2(6) of the Integrated Goods and Services Tax Act, 2017?

Crux: The Clinical Research services proposed to be provided by them to entities located outside India is not eligible to be treated as an export of service under Section 2(6) of the IGST Act, 2017. The services are liable to CGST and SGST as the location of 'supplier of service' and the 'place of supply' is in the same State, in terms of Section 13(3)(a) of IGST Act, 2017.

Order

Summary
 

Section 13 of IGST

Section 2(6) of IGST

Order dated 30/04/2019

Issue: Whether the amount collected as membership subscription and admission fees from members is liable to GST as supply of services?
If the above receipts are liable to GST can the Club claim Input tax credit of the tax paid on Banquet and catering services for holding members meetings and various events?

Crux: 1.The amount collected as membership subscription and fees from members is liable to GST as per section 7 of CGST Act.
2. The Applicant, cannot claim input tax credit on the tax paid on banquet and catering services as per section 17(5)(b)(i) of the Act.

Order

Summary

AAAR Order

Order dated 06/11/2019

Issue: whether: (i) The amount collected as membership subscription and admission fees from members is liable to GST as supply of services?
(ii) If the such receipts are liable to GST, can the appellant claim Input tax credit of the tax paid on the Banquet and Catering services for holding members meetings and various events?

Crux: AAAR set aside the rulings pronounced by AAR and held that the amount collected as membership subscription and admission fees from members is not liable to GST as supply of services.

Order

Summary

Section 7 of CGST

Section 17 of CGST

Order dated 26/04/2019

Issue: 1. Determining whether the various services provided to foreign clients i.e. situated outside India and for which the place of supply is in the taxable territory shall be liable to Integrated Tax (herein referred to as "IGST") or Central Goods and Service Tax (herein referred to as "CGST") and State Goods and Service Tax (herein referred to as "SGST") for the purpose of levy of Goods and Services Tax (GST) under the GST Law.
2. In case it is ruled that IGST is payable, the procedure to be followed for payment of IGST as the GST portal does not permit the payment of IGST where the place of supply is indicated as state of Maharashtra.

Crux: 1. The services are liable to CGST and SGST as the location of ‘supplier of service’ and the ‘place of supply’ is in the same State, in terms of Section 13(3)(a) of IGST Act, 2017.
2. Not answered since IGST is not applicable.

Order

Summary

Section 13 of IGST

Section 2(6) of IGST

Order dated 26/04/2019

Issue: Whether services provided under vocational training courses recognized by National Council for Vocational Training (NCVT) or Jan Shikshan Sansthan (]SS) is exempt either under Entry No 64 of exemption list of Goods and Service Tax Act 2017 or under Educational Institution defined under Notification 12/Central Tax (Rate)?

Crux: The applicant is not a Central/State Government, Union Territory or local authority and therefore Entry No. 64 is not applicable to them. The vocational education courses pertaining to (i) Diesel Mechanic, (ii) Computer Operator and Programming Assistance (COPA), (iii) Welder and (iv) Motor Mechanic are carried out by the applicant who are affiliated to the NCVT and therefore such services provided by them are attracting NIL rate of tax under GST. (Sr.No. 66 of Notification No. 12/2017 CT (Rate) dated 28.06.2019).

Order

Summary
 

Notification No. 12/2017 Central Tax (Rate)

Order dated 24/04/2019

Issue: Whether input tax credit is available of the GST paid on expenses incurred towards promotional schemes of Shubh Labh Loyalty Program and goods given as brand reminders?

Crux: The Applicants should not be entitled to ITC on GST paid on expenses incurred towards promotional schemes of Shubh Labh Loyalty Programme and goods given as brand reminders as transaction is nothing but a gift.

Order

Summary
 

Section 17 of CGST

Order dated 24/04/2019

Issue: (i) Whether the procedure to raise the invoice from Mumbai Office for imports received at Paradip Port, Odisha where we do not have any separate GST Registration and Charge IGST from Mumbai to our Customers is correct? or do we have to take separate Registration in the State of Odisha for the below mentioned transactions?
(ii) If we do not need separate registration in Odisha, can we do the transaction on Mumbai Office GSTIN, then in case of issuance of e way bill is it correct to Mention the GSTIN of Mumbai and Dispatch place as Paradip Port?

Crux: 1. The place of supply shall be the place from where the applicant makes a taxable supply of goods i.e. Mumbai, thus the applicant can clear the goods on the basis of invoices issued by the Mumbai Head Office and therefore they need not take separate registration in the State of Odisha.

2. Yes, they can do the further transaction mentioning the GSTIN of their Mumbai office in the E-way Bill and dispatch place, as Customs Warehouse, Odisha, Paradip Port.

Order

Summary
 

Section 22 of CGST

Order dated 15/04/2019

Issue: Whether he requires registration in each state separately?

Crux: The applicant can clear the goods on the basis of invoices issued by the Mumbai Head Office/Registered Office at Mumbai on payment of IGST in the State of Maharashtra and therefore they need not take separate registration in other states.

Order

Summary

Section 22 of CGST

Order dated 13/04/2019

Issue: Whether the supply of services by the applicant, of 'transfer by way of lease' of vacant plots of 'Maharashtra State Government owned lands' or 'privately owned lands acquired under the Land Acquisition Act, 1894 by the Maharashtra State Government' vested in CIDCO, to:
(a) Navi Mumbai Municipal Corporation('NMMC'), for intended development thereof and construction of buildings by the latter on each of those plots, demarcated for separate use as:
(i) Indoor Recreation Centre,
(ii) Slaughter House;

(b) Panvel Municipal Corporation('PMC'), for intended development thereof and construction of buildings by the latter on each of those plots, demarcated for separate use
(i) PMC Ward Office(s),
(ii) PMC Commissioner's residence, and
(iii)PMC Mayor's residence;
can be said to covered within the scope of entry at Sr. No. 3 or any other entry of the Notification No. 12/2017-Central Tax (Rate) dated 28.06.2017 as amended by Notification No. 32/2017-Central Tax (Rate) dated 13.10.2017, 47/2017-Central Tax (Rate) dated 14.11.2017 further amended by Notification No. 02/2018-Central Tax (Rate) dated 25.01.2018 read with parallel notifications issued under the MGST Act, 2017?

Crux: 1.Lease of Plot to NMMC for Indoor Recreation centre and Slaughter house are exempt from GST as per S.No. 3 of the Notification No. 12/2017- Central Tax (Rate) dated 28 June 2017
2.Lease of Plot to PMC for PMC wards are exempt from GST as per S.No. 3 of the Notification No. 12/2017- Central Tax (Rate) dated 28 June 2017
3. Leasing of Plot for construction of building for PMC Commissioner's and PMC Mayor's residences is liable to GST as per Sr.3 clause (vi) (c) and Sr. No. 16 of Notification 11/2017 -CT (Rate).

Order

Summary
 

Notification No. 12/2017 Central Tax (Rate)

Notification No. 11/2017 Central Tax (Rate)

Order dated 10/04/2019

Issue: Whether the firm is liable to take registration under section 24 or is exempted from registration under section 23?

Crux: Applicant is liable to take registration in view of provisions of section 24 of the GST Act, 2017.

Order

Summary
 

Section 24 of CGST

Notification No. 13/2017 Central Tax (Rate)

Order dated 28/03/2019

Issue: 1.Whether the supply of goods or services for ‘setting up of network’ would qualify as ‘works contract’ as defined in Section 2(119) of the CGST Act?
2.If supplies contemplated as per the contract with BSNL are not treated as works contract, can these continue to qualify as composite supply? if yes what is the principle supply?
3.What is the rate of tax applicable to the supplies made under the contract?

Crux: 1.The supply of goods or services for ‘setting up of network’ would qualify as a Composite supply of works contract as defined in clause (119) of section 2 of the Central Goods and Services Tax Act, 2017.
2.Not answered in view of answer to Question No. I.
3.The rate of tax applicable to the supplies will be 18% GST

Order

Summary
 

Notification No. 11/2017 Central Tax (Rate)

Notification No. 12/2017 Central Tax (Rate)

Order dated 19/03/2019

Issue: 1. Whether supply of ice-cream by the applicant from its retail outlets would be treated as supply of "goods" or supply of "service" or a "composite supply" and subject to GST accordingly?
2. Whether the supply, not being a composite supply, would be treated as supply of service in terms of entry 6(b) of Schedule 11 attached to the CGST Act, 2017 and leviable to CGST @ 2.5% in terms of Notification No. 11/2017 as amended by Notification No.46/2017-Central Tax (Rate) (serial no. (i) entry no. 7) of the notification?
3. In case the supply is held to be "composite supply", whether the taxability of the same should be treated as supply of service in terms of entry 6(b) of the Schedule Il of the CGST act, 2017 or should be taxable on the basis of nature of principal supply in accordance with Section 8 of the Act?
4. In case the supply is held to be a supply of service in terms of entry 6(b) of Schedule Il to the CGST Act, 2017, would it be mandatory for the applicant to collect and pay CGST @ 2.5% inspite of the fact that entry 7(i) of Notification No. 11/2017 as amended by Notification No.46/2017-Central Tax is a conditional entry?

Crux: 1. The supply of ice-cream by the applicant from its retail outlets would be treated as supply of “goods”.
2. There is a transfer of title in ice creams from the applicant to their customers and therefore as per entry no. 1(a) of the Schedule II of the CGST Act, the subject transaction is nothing but a supply of goods and not services.
3. & 4. Not answered in view of answer to Question No. 1 above.

Order

Summary

Order dt. 09/09/2019

Issue:-1. Whether supply of ice-cream by the applicant from its retail outlets would be treated as supply of "goods" or supply of "service" or a "composite supply" and subject to GST accordingly?
2. Whether the supply, not being a composite supply, would be treated as supply of service in terms of entry 6(b) of Schedule 11 attached to the CGST Act, 2017 and leviable to CGST @ 2.5% in terms of Notification No. 11/2017 as amended by Notification No.46/2017-Central Tax (Rate) (serial no. (i) entry no. 7) of the notification?
3. In case the supply is held to be "composite supply", whether the taxability of the same should be treated as supply of service in terms of entry 6(b) of the Schedule Il of the CGST act, 2017 or should be taxable on the basis of nature of principal supply in accordance with Section 8 of the Act?
4. In case the supply is held to be a supply of service in terms of entry 6(b) of Schedule Il to the CGST Act, 2017, would it be mandatory for the applicant to collect and pay CGST @ 2.5% inspite of the fact that entry 7(i) of Notification No. 11/2017 as amended by Notification No.46/2017-Central Tax is a conditional entry?

Crux: The instant appeal is allowed. The order passed by the ARA is declared void ab-initio as it was vitiated by the process of suppression of material facts.

Order

Summary

Schedule II of CGST

Order dated 14/03/2019

Issue: 1. Please confirm that Main Propulsion engine for ships falling under HSN code 8408 1093, Marine Gear box falling under heading 8483 and marine generator falling under 8502 1100 and Marine engine for other applications like pumps falling under sub-heading 8408 10 would be considered as parts of Goods for Chapter 89,
2. Further if the all above used in manufacturing of the boat/ ships under headings 8901, 8902, 8904, 8905, 8906 and 8907 shall be charged with 5% even if in their respective chapters, the rates of GST are higher: For example, GST for HSN code 8408 10 93 is 28%, but when supplied to shipyards would be 5% and also implied for chapters 8483 and 8502 1100 above.
3. The invoice made by the dealer to the shipyard would be made under the respective product chapter, but with 5% GST. For example marine main propulsion engine would be made with 5% GST under HSN code 8408 1093 and not 28%. And also implied for chapters 8483 and 8502 1100 above with 5% GST.
4. As a generator manufacturer, we buy a marine Engine from our principles (Ashok Leyland). Please conform if we could buy under 5% GST from Ashok Leyland with our letter of undertaking stating that we shall be supplying these Generators to Marine Shipyard also stating in the letter , the with Hull number (which is always unique )for a project and shipyard order copy. We would also submit a covering letter from the shipyard to Ashok Leyland for the same subject matter and yard number (which is always unique). With all this above procedure can Ashok Leyland supply us Marine Generator Diesel Engines with 5% GST under HSN code 8408 1093?
5. When we have to sell an engine to shipyard for main Propulsion, we buy it from Ashok Leyland. under that context could we buy the engines with our letter of undertaking stating that we shall be supplying these engines to marine Shipyard name and Hull number (which is always unique) for that project and with shipyard order copy and also a covering letter from the shipyard for the same subject matter and yard number (which is always unique). With all this can we get the supplies from Ashok Leyland at 5% GST?

Crux: 1. The goods supplied by the applicant would be considered as parts of goods for chapter 89.
2. The goods as above supplied by the applicant used in the manufacturing of the boat/ ships under headings 8901, 8902, 8904, 8905, 8906 and 8907 shall be charged with 5% even if their GST rates are higher, by application of Notification 1/2017 of the Central Tax (Rate).
3. The invoice made by the dealer to the shipyard would be made under the respective product chapter, but with 5% GST.
4. &5. They are related to the transaction of supply by M/s. Ashok Leyland, as per the provision of section 95 and section 97 of the GST Act, these question are out of preview of this authority.

Order

Summary
 

Notification No. 01/2017 Central Tax (Rate)

Order dated 19/03/2019

Issue: Whether value of supply of goods by one distinct entity (Factory/depot) as defined under sec 25(4) of the CGST Act 2017 as amended to another distinct entity (Factory/depot) can be determined on the basis of our cost of production. Our cost of production depends mainly on cost of inputs and input services hence the same fluctuates with the price of inputs and input services".

Crux: Applicant can apply Rule 28 of the GST Rules, 2017 to determine the value for supply of goods by one distinct entity (factory/depot) as defined u/s25(4) of the CGST Act to an other distinct entity having same PAN (factory/depot).

Order

Summary

AAAR Order

Order dated 03/08/2018

Issue: whether the accumulated credit by way of Krishi Kalyan Cess ( KKC) as appeared in the service tax return of Input Service Distributor (ISD) on June 30, 2017 which is carried forward in the electronic credit ledger maintained by the company under CGST Act , 2017 will be considered as admissible input tax credit wherein it was decided that KKC as appeared in the service tax return of Input Service Distributor (ISD) on June 30, 2017 which is carried forward in the electronic ledger maintained by the Appellant under CGST Act, 2017, will not be considered as admissible input tax credit.

Crux: The accumulated credit by way of Krishi Kalyan Cess (KKC) as appeared in the Service tax return of Input Service Distributor (ISD) on June 30, 2017 which is carried forward in the electronic credit ledger maintained by the Appellant under CGST Act 2017, shall not be allowed to be taken as admissible input tax credit. Accordingly the order of AAR stands confirmed in terms of the above order.

Order

Summary

Rule 28 of CGST

Order dated 06/03/2019

Issue: 1. Whether GST is applicable on the Advisory & Management Fees received in Indian Currency from Domestic Contributors located in India for the Services rendered by the applicant?
2. Whether GST is applicable on the Advisory & Management Fees received in Foreign Currency from Overseas Contributors located outside India for the Services rendered by the applicant?

Crux: 1. The applicant and the AIF are in taxable territory and the services rendered by the applicant to the AIF are taxable and therefore GST is payable.
2. The transaction do not qualify to be an export of service as the condition specified in sub-clause (ii) of Sub-section (6) of Section 2 of IGST Act,2017 that recipient of service should be outside India, is not satisfied, and therefore it is not a zero rated supply and hence GST is payable.

Order

Summary

Notification No. 11/2017 Central Tax (Rate)

Section 7 of CGST

Order dated 20/03/2019

Issue: Whether the construction services proposed to be provided by the applicant under the subject project will qualify for the reduced CGST rate of 12% (6% each of CGST & SGST), as provided in Sr. No. 3 – item (v) – sub item (da) of Notification No. 01/2018-CT (Rate) dated 25.01.2018

Crux: The applicant will be eligible for concessional rate @ 12% in the project as per the facts as seen. The concessional rate will be applicable only for residential units of upto 60 sq mts., in their project and not for commercial units.

Order

Summary

Notification No. 1/2018 Central Tax (Rate)

Order dated 22/03/2019

Issue:1. Whether Tata Harrier vehicle, which has following specifications, is classifiable under Tariff Item 8703 32 91 or 8703 32 99 of the First Schedule to the Customs Tariff Act, 1975 (51 of 1975)?

2. For a motor vehicle to get covered under above entry as SUV/ UV, whether it has to satisfy only the conditions mentioned in main clause i.e. engine capacity above 1500 cc and popularly known as SUV/ UV or in addition, it has to also satisfy the conditions mentioned in Explanation" i.e. length exceeding 4000 mm and ground clearance of 170 mm and above? In short, if the vehicle satisfies only the conditions mentioned in main clause but is not satisfying any one or all of the conditions mentioned in Explanation', whether it would still be covered under Entry at Sr. No. 52B of Notification No. 1/2017-Compensation Cess (Rate) dated 28.06.2017 as amended?

3. For the purpose of Cess @ 22% under Sr. No: 52B of Notification No. 1/2017 Compensation Cess (Rate) dated 28.06.2017 as amended, whether the ground clearance of the vehicle is to be considered in laden condition or in unladen condition?

4. Whether Tata Harrier vehicle whose ground clearance in unladen condition is 205 mm and in laden condition is 160 mm, would fall under Sr. No. 52B of the Notification No. 1/2017-Compensation Cess. (Rate) dated 28.06.2017 as amended?

5. Whether GST Compensation Cess @ 22% under Sr. No. 52B of Notification No. 1/2017-Compensation Cess (Rate) dated 28.06.2017 as amended, will be applicable to Tata Harrier vehicle?

6. Vehicle whose ground clearance in unladen condition is more than 170 mm but below 170mm in laden condition, whether will get covered under Sr. No. 52B of Notification No. 1/2017-Compensation Cess (Rate) dated 28.06.2017?

Crux: 1.Tata Harrier vehicle, is classifiable under Tariff Item 8703 32 91 of the First Schedule to the Customs Tariff Act, 1975 (51 of 1975).
2. To be covered under Sr. No. 52B of Notification No. 1/2017-Compensation Cess (Rate) dated 28.06.2017, the vehicle must satisfy the conditions mentioned in main clause as well as the conditions mentioned in the Explanation.
3. The ground clearance given in the Notification must be arrived in unladen condition.
4. Tata Harrier vehicle whose ground clearance in unladen condition is 205 mm and in laden condition is 160 mm, would fall under Sr. No. 52B of the Notification No. 1/2017-Compensation Cess. (Rate) dated 28.06.2017.
5. GST compensation Cess @ 22% under Sr. No. 52B of Notification No. 1/2017-Compensation Cess (Rate) dated 28.06.2017 will be applicable in the subject case.
6. To get covered under Sr. No. 52B of Notification No. 1/2017-Compensation. Cess (Rate) dated 28.06.2017, the ground clearance should be 170 mm or above in unladen condition.

Order

Summary

AAAR set aside the ruling of ARA

Order dated 20/09/2019

Issue: 3. For the purpose of Cess @ 22% under Sr. No: 52B of Notification No. 1/2017 Compensation Cess (Rate) dated 28.06.2017 as amended, whether the ground clearance of the vehicle is to be considered in laden condition or in unladen condition'
6. Vehicle whose ground clearance in unladen condition is more than 170 mm but below 170mm in laden condition, whether will get covered under Sr. No. 52B of Notification No. 1/2017-Compensation Cess (Rate) dated 28.06.2017'

Crux: AAAR set aside the ruling of ARA and ruled as follows:
3.For the purpose of Cess @ 22% under Sr. No. 52B of Cess Rate Notification, the ground clearance of the vehicle is to be considered in laden condition only.
6. Vehicle whose ground clearance in unladen condition is more than 170mm but below 170mm in laden condition, will not get covered under Sr. No. 52B of Cess Rate Notification.

Order

Summary

Notification No. 1/2017 Compensation Cess (Rate)

Order dated 22/03/2019

Issue: Whether the packaging materials viz. cut to size blanks manufactured by TCPL with corrugation and having requisite creases at designated places, supplied to the Customers in flat form with folding, can be categorized under Tariff Item Code no 4819 and subject to GST @ 12%?
 2. What would be the appropriate categorization and GST Rate of printed materials which are in flat form, e.g. hanging cards, without creases having corrugation and supplied to customer in flat form?

Crux: 1. Packaging .materials viz cut to size blanks and supplied in flat form manufactured by TCPL with corrugation and having requisite creases at designated places, supplied in flat form shall be classifiable under Tariff Item Code 4819 chargeable to GST at 12%.
2. Printed materials which are in flat form, e.g. hanging cards, without creases having corrugation will fall under CH 4823 and subject to 18% GST.

Order

Summary

Order dated 02/03/2019

Issue:1.The activity of converting the bare shaft/beams supplied by the customer into ready to use sugar mill roller (by using one’s own raw material) will be treatable as supply of goods or will be treatable as supply of service?
2. Whether the cost of shaft/beam supplied by the customer is includible in the value of the said supply for the purpose of payment of GST?

Crux:  i) The activity undertaken by applicant of converting the bare shaft/beams supplied by the customer into ready to use sugar mill roller (by using one’s own raw material) is “supply of goods “.
ii) As per provisions of sub-rule (b) of Rules 27 the declared value on challan shall be included in the value of supply of ready to use roller.

Order

Summary

Rule 27 of CGST

Section 2 of CGST

Order dated 27/02/2019

Issue:1. Whether supply of service of:

(i) Printing of Pre-examination items like question papers, OMR sheets (Optical Mark Reading), answer booklets;
(ii) Printing of Post-examination items like marks card, grade card, certificates to the educational boards of up to higher secondary; and
(iii) What would be the classification and the applicable GST rate, for the supply of Printing of cheque book / railway tickets be treated as exempted supply of service by virtue of Entry No. 66 of the Notification No. 12/2017 - Central Tax (Rate), dated 28th June, 2017 and as amended by Notification No.2/2018 - Central Tax (Rate), dated 25th January, 2018; Entry No. 66 of Notification No. 12/2017 - State Tax (Rate), dated 29th June, 2017; and Entry No. 69 of the Notification No. 9/ 2017 - Integrated Tax (Rate), dated 28th June, 2017 as amended by Notification No. 2/2018- Integrated Tax (Rate), dated 25th January, 2018?

Crux: (i) & (ii) Printing of pre/Post-examination items is a supply of services classifiable under Heading 9992 and will be exempted from payment of GST vide Entry No. 66 of the Notification No. 12/2017 – Central Tax (Rate), dated 28th June, 2017 as amended.
(iii) In case of railway Tickets/cheque books where the applicant uses their own physical input i.e. paper, then the case is covered under under Heading 9989 (i) of Notification No. 11/2017-Central Tax (Rate) dated 28th June, 2017 as amended and is taxable at 6% CGST.

Order

Summary
 

Notification No. 11/2017 Central Tax (Rate)

Notification No. 12/2017 Central Tax (Rate)

Order dated 22/02/2019

Issue: Whether the applicants are eligible to avail ITC of GST paid on goods and services used for construction of Tie-in pipeline, for delivery of re-gasified LNG from FSRU to the National Grid

Crux: The applicants are not eligible to avail ITC of GST paid on goods and services used for construction of Tie-in pipeline, for delivery of re-gasified LNG from FSRU to the National Grid.

Order

Summary

Order modify by AAAR

Order dated 07/10/2019

Issue: Whether the appellants would be eligible to avail the ITC of GST paid on goods and services used for construction of Tie-in pipelines, from the FSRU to the National grid.

Crux: AAAR modify the ruling ruled by ARA in so far the observation of the facts and legal provisions are concerned and pass the order by holding that the Appellant is not entitled to avail the ITC of GST paid on goods and services used for construction of Tie-in pipelines, from the FSRU to the National grid as per the provision laid out in section 17(5)(c) and 17(5)(d) of the CGST Act, 2017.

Order

Summary

Section 17 of CGST

Order dated 18/02/2019

Issue: What is the appropriate classification and rate of GST on the supply of such "Hydraulic Kit" cleared to dealers / distributors or OEMs cleared as such, which comprises of the Hydraulic cylinder and wet kit (with or without pump).

Crux: Hydraulic Kits are appropriately classifiable as ‘other engines and motors’ under heading 8412 and the rate of GST would as applicable to that heading in the Schedule at the relevant time.

Order

Summary
 

Order dated 16/02/2019

Issue: What will be the correct HSN code and consequently rate of GST applicable on “Ready to cook popcorn premix i.e. Popcorn Maize with edible oil and salt”, sold in retail pack size ranging from 30 grams to 350 grams.

Crux: The correct HSN code would be 2008 19 90.

Order

Summary
 

Order dated 28/01/2019

Issue: What is the appropriate classification of the product, Prohance – D (Chocolate)?

Crux: The appropriate classification of the Applicant’s product, Prohance – D (Chocolate) is 2106 90 50.

Order

Summary

Order dt. 25/10/2019

Issue:-what would be the appropriate classification of the Prohance-D - Chocolate variant/flavor?

Crux: AAAR set aside the order of the AAR classifying the product Prohance-D (Chocolate) under heading 21069050 and held that the product would instead classify as a diabetic food covered under chapter heading 21069091.

Order

Summary

Notification No. 01/2017 Central Tax (Rate)

Order dated 15/01/2019

Issue: 1.1-Whether Applicant is dealing in second hand goods and tax is to be paid on the difference between selling price and purchase price as stipulated in Rule 32 (5) of CGST Rules, 2017?

1.2- The classification and HSN code of goods listed in table given in "Issues for Determination" and GST rates applicable to such goods.

Crux: 1.1 the liability will be discharged by the applicant on the difference between selling price and purchase price as stipulated in Rule 32 (5) of CGST Rules, 2017 only in respect of old cars, old jewellery and old watches.

1.2.(i) Paintings as described by the applicant will be classifiable under Heading 9701 and the applicant must pay GST of 12% on the sale value.

(ii) Old Cars:- Motor Vehicles fall under Heading 8703 of the GST Tariff. All the items under 8703 attract 28% GST except Tariff item 870310 10; Sub-heading 8703 80. However old cars attract a lower rate of tax as per Notification No. 08/2018 CT (Rate) dated 25.01.2018. As per the said Notification, the lesser rate of tax i.e. 18 % is applicable to old cars provided the conditions mentioned therein are fulfilled. Except submitting that they are dealing in old cars, they have not submitted any other details. It is also seen that the provisions of Rule 32(5) of CGST Rules are applicable to them, subject to the conditions of the Notification No. 08/2018 CT (Rate) dated 25.01.2018 being satisfied by them.

(iii) Old Jewellery:- Articles of jewellery and parts thereof falls under Heading 7113 of the GST Tariff. The provisions of Rule 32(5) of CGST Rules are applicable to them in respect of old jewellery which are purchased by them and then sold by them.

(iv) Antique jewellery of age exceeding 100 years:- Antique jewellery of age exceeding 100 years will fall under Tariff item 9706 00 00 and will be liable to tax @ 12% GST. The provisions of Rule 32(5) of CGST Rules will not be applicable to them in this case.

(v) old watches:- Wrist watches, pocket-watches and other watches, including stop-watches, With case of precious metal or of metal clad with precious metal fall under CH 9101 of the GST Tariff and Wrist watches, pocket-watches and other watches, including stop-watches, ;;ether than those of Heading 9101 fall under Heading 9102 of the said Tariff. The rate of GST is 18% and the same is applicable even to Old Watches, however with the benefit of the provisions of Rule 32(5) of CGST Rules i.e. tax will be paid on the difference between sale price and purchase price considering such watches as second hand goods.

(vi) Antique watches of age exceeding 100 years:- Antique watches of age exceeding 100 years will fall under Tariff item 9706 00 00 and will be liable to tax @ 12% GST. The provisions of Rule 32(5) of CGST Rules will not be applicable to them in this case.

Order

Summary

Order modify by AAAR

Order dated 07/10/2019

Issue: 1 Whether applicant is dealing in second hand goods and tax is to be paid on the difference between selling price and purchase price as stipulated in Rule 32 (5) of CGST Rules, 2017?
2. The classification and HSN code of following goods:
(i) Paintings bought from individual art collectors (ii) Old cars (iii) Old jewellery (iv) Antique Jewellery (v) Old Watches (vi) Antique Watches (vii) Collectibles (viii) Collectibles (Books) (ix) Antique Books

Crux: AAAR held that: The appellant is eligible to take benefit of Rule 32(5) for the products placed by them before us except items placed at 7 & 8. We cannot give any ruling on items 7 & 8 and we agree with the observations of the AAR on 7 & 8, that in absence of any specific description of the products contained in them, no ruling can be given.

Order

Summary

Rule 32 of CGST

Order dated 08/01/2019

Issue: I. Whether the transaction/contract referred in the present application to M/S APTRANSCO is in the nature of Works Contract Services and therefore liable to GST 18% under the HSN Code 995461 ?
II. If the answer to above is in negative, whether the said transaction is Supply of Goods? a) If yes, liable to GST at what rate of tax and under which HSN Code ?

Crux: I There is no works contract involved in the subject case and the supply is nothing but a composite supply with supply of goods being the principal supply.
II. The said transaction is a composite supply where the principal supply majorly is a supply of goods. Thus the entire transaction is taxable @18 GST under Heading 8537 of the GST Tariff.

Order

Summary
 

Section 2 of CGST

Order dated 29/12/2018

Issue: 1. The nature of Services provided under the Contract whether covered under Sl. no. 3(vi)(a) of notification no. 11/2017 – Central Tax (Rate) dt. 28th June 2017 amended with notification 24/2017-Central Tax (Rate) dt 21.09.2017 and further amended with notification no. 31/2017 Central Tax (Rate) dt 13.10.2017 and notification no. 17/2018 dt.26.07.2018?
2. What is the Rate of GST applicable for the Project?

Crux:1. Activity of supply will not be covered under Sl.no. 3(vi)(a) of Notification No. 11/2017 – Central Tax (Rate) dt.28th June 2017 because the said Notification as amended cover supply of services and does not cover supply of goods.
2. GST Rate applicable to the applicant is 12% (6% each of CGST & SGST)

Order

Summary
 

Notification No. 11/2017 Central Tax (Rate)

Order dated 29/12/2018

Issue:1. Whether GST is levied on the reimbursement of expenses from the lessee by the lessor at actuals?
2. In case GST is levied, what is the rate of GST applicable to said reimbursement of expenses ?

Crux: 1. As the reimbursement of the expenses constitute composite supply where Principal supply or main supply is renting of immovable property thus GST would be payable.
2. As the reimbursement of the expenses constitute composite supply GST would be payable at a rate as applicable to the principal supply.

Order

Summary
 

Section 7 of CGST

Order dated 29/12/2018

Issue:1(a) Whether hostel accommodation provided by Trusts to students is covered within the definition of Charitable Activities and thus, exempt under Sl. No. 1 of notification No.12/2017-CT (Rate)?
1(b). Whether the supply of residential or lodging services @ Rs. 22,250/- per annum is covered by Sr. No. 14 of Notification No. 12/2017 – CT (Rate)?
2. Whether different treatment would be required for use of hostel rooms given by us for residential purposes but ultimately been used by the hirer for commercial use.
3. Whether the said notification would be applicable if the accommodation if decided to be given for commercial purposes in future whether the activity still would be able to enjoy exemption under said notification.
4. Whether the large donations given by the donors would be treated as 'service and taxed accordingly and whether only sponsored donations are believed to be covered under said mega exemption notification.

Crux: 1(a). The activities of the Trust in providing hostel accommodation facilities to the students do not fall within the ambit of charitable activities hence not covered by exemption Notification Entry No.1 of Notification No. 12/2017-CT (Rate).
1(b). Yes, the supply of residential or lodging services @ Rs. 22,250/- per annum is covered by Sr. No. 14 of Notification No. 12/2017 – CT (Rate)
2. The services provided by hostel, for residential and lodging purposes would be covered by the scope of notification entry where the declared tariff of a unit of an accommodation is below one thousand rupees per day. However the scope of the entry is restricted to use of the accommodation unit for residential and lodging purpose.
3. The scope of exemption entry 14 of the Notification 12/2017 which is applicable to accommodation unit when used only for residential or lodging purpose.
4. Not answered for incomplete details submitted by the applicant.

Order

Summary
 

Notification No. 12/2017 Central Tax (Rate)

Order dated 29/12/2018

Issue: Whether the Material Aluminium Alloys (HSN.76012010) can be supplied under Govt. Notification no. 47/2017 dated 14.11.2017?

Crux: Aluminum Alloy" having HSN Code No.76012010, supplied by the applicant to GTRE is not eligible for concessional rate of GST and Notification No. 47/2017, IGST (Tax) dt .14.11.2017 is not applicable

Order

Summary
 

Order dated 29/12/2018

Issue:1. Whether GST would be applicable on interest free security deposit and notional interest if any?
2. In case GST is applicable what would be value of notional interest for levy of GST?

Crux: 1. GST is not applicable on interest free security deposit.
2. Not answered in view of answer to question 1 above.

Order

Summary
 

Section 2 of CGST

Order dated 27/12/2018

Issue: 1. Whether 4601 as the HSN Classification of Polypropylene Mats is correct?
2. If the answer to above question is in the affirmative, whether entry No 198A (inserted vide Notification No 27/2017) is to be applied or Entry No. 103 should be considered. In other words, whether CGST / SGST Tax Rate is to be considered as 2.5% or 6% ?

Crux:1. Polypropylene Mats falls in heading 4601 of First Schedule of the Indian Customs Tariff Act,1975.
2. Not answered as the question is withdrawn by the applicant in view of Notification No. 6/2018 – Central Tax (Rate) -dated 25/01/2018.

Order

Summary
 

Notification No. 06/2018 Central Tax (Rate)

Order dated 24/12/2018

Issue: 1) Being a part of the Ministry of Defence, Government of India, whether on which our organisation Ordnance Factory Bhandara (OFBa) is liable to pay GST Advance on the following supply of services:

a) Liquidated damages deducted from the payments to be made to required suppliers in case of delayed delivery of goods or services.
b) Amount of Security deposit forfeited of suppliers due to non fulfilment of certain contract conditions.
c) Security deposit left unclaimed by the suppliers and recognised as income after 3 years.
d) Food and beverages supplied at industrial canteen inside the factory premises.
e) Community hall (Multipurpose Hall) provided on rental basis to employees of our organisation.
f) School bus facility provided to children of the employees.
g) Conducting exams for various vacancies.
h) Rent recovered from residential quarters of employees.

2) Whether Input Tax Credit on expenditure on the goods and services consumed by our organisation in following activities shall be available:
a) Maintenance of garden inside the factory premises.
b) Maintenance and upkeep activities relating to gardens, parks, playground, factory school for children of employees, hall for recreational activities, residential quarter buildings of employees, roads, footpaths, street lightings and other parts of estate area that are located outside the factory premises but within the factory estate.
c) Medicines purchased by the hospital maintained by our organisation and used for treatment of factory employees and their dependents. Expenditure on maintenance, upkeep and other activities relating to such hospital.
d) Expenditure related to maintenance and upkeep of guest houses maintained by organisation.
e) Expenditure related to purchase of LPG cylinders used within industrial canteen.

3) Whether the exemption to a 'defence formation' for preparation and generation of E-way bills is applicable to Ordnance factories & other Central Government & Public Sector Undertakings(PSU's) that function under the Ministry of Defence, Government of India?

4) Whether exemption on payment of GST on transport of 'military or defence equipments through a goods transport agency applicable to goods transported by our organisation?

5) Whether Input Tax Credit is to be reversed on finished goods that are destroyed during testing?

6) Whether proportionate Input Tax Credit has to be reversed in cases where lesser payment is made to the supplier due to deduction on account of liquidated damages from supplier's dues?

7) Being a part of the Ministry of Defence, Government of India, whether the following notifications are applicable to our organisation and what shall be the impact of such notifications:
a) Notification No. 2/2018- Central Tax (Rate), in relation to services by an arbitrator or an advocate to our organisation.
b) Notification No. 3/2018- Central Tax (Rate), in relation to services supplied by our organisation by way of renting of immovable property to a person registered under the Central Goods and Services Tax Act, 2017.
c) Notification No. 36/2017 - Central Tax (Rate), in relation to payment of tax on reverse charge mechanism on sale of used vehicles, seized and confiscated goods, old and used goods, waste and scrap to a GST registered person.

8) Whether Input Tax Credit on services of passenger vehicles hired by our organisation is available?

Crux:1a. Applicant are not liable to get exemption under notification no. 12/2017- Central tax(Rate) dated 28th June 2017 which provides NIL rate of Tax in respect of services provided by the Central Government, State Government, etc. in respect of ‘Liquidated damages’ deducted from the payments to be made to suppliers in case of delayed delivery of goods or services.
1b. Applicant are not liable to get exemption under notification no. 12/2017- Central tax(Rate) dated 28th June 2017 which provides NIL rate of Tax in respect of services provided by the Central Government, State Government, etc. in respect of Security deposit of suppliers forfeited by the applicant, due to non-fulfilment of certain contract conditions.
1c. The applicant is not liable to pay any tax on Security deposit left unclaimed by the suppliers and recognised as income under the GST Regime.
1d. The service code for such services is 9963 and the same is taxable under GST as per notification 11/2017-CT dated 28.06.2017.
1e. Applicant are liable to pay GST on the amount charged by them from their employees for renting of community hall
1f. As the applicant is not an educational institution and the school bus facility is extended to the children of employees the provisions of Sr. No. 66 (b) (heading 9992) of notification no. 12/2017- Central tax(Rate) dated 28th June 2017 is not applicable to them.
1g. As the applicant is not an educational institution nor ‘Government’ therefore applicant is liable to pay GST on such services supplied.
1h. The service provided by the factory to its employees of allowing them to use quarters for their residential purposes falls within the scope of Entry no. 12 of notification no. 12/2017 and exempt from tax.
2a.to e Input Tax Credit on expenditure on the goods and services consumed by our organisation in all the activities mentioned above in Question 2 shall not be available
3. The applicant organization is not required to raise e-way bill at the time of supply of goods.

4. As per Sr. No. 21 of the notification no. 12/2017- Central tax (Rate), “Services provided by a goods transport agency, by way of transport in a goods carriage of defence or military equipments” are exempt from the levy of GST.
5. The reversal of tax on the ITC cannot be demanded on the input content in the finished goods lost or destroyed under the aforementioned section 17(5) of the CGST Act, 2017.
6.The applicant will be eligible to take ITC proportionally equal to actual payment made to such suppliers and is therefore required to reverse ITC accordingly.
7a. The applicant is not eligible for exemption as per the said Notification.

7b. Renting of immovable property for non-residential purpose is taxable at the hands of the applicant.

7c. The applicant is required to discharge GST on such sale.

8. Not answered, being withdrawn by the applicant

Order

Summary

Order upheld by AAAR

Order dated 18/10/2019

Issue: 1. Being a part of the Ministry of Defence, Government of India, whether our organization Ordnance Factory Bhandara is liable to pay GST on the following supply of services: -
a) Liquidated damages deducted from the payments to be made to suppliers in case of delayed delivery of goods or services.
b) Amount of Security deposit forfeited of suppliers due to non-fulfillment of certain contract conditions.
c) Security deposit left unclaimed by the suppliers and recognized as income after 3 years.
d) Food and beverages supplied at industrial canteen inside the factory premises.
e) Community hall (Multipurpose Hall) provided on rental basis to employees of our organization.
f) School bus facility provided to children of the employees.
g) Conducting exams for various vacancies.
h) Rent recovered from residential quarters of employees.

2. Whether Input Tax Credit on expenditure on the goods and services consumed by our organisation in following activities shall be available: -
a) Maintenance of garden inside the factory premises.
b) Maintenance and upkeep activities relating to gardens, parks, playground, factory school for children of employees, hall for recreational activities, residential quarter buildings of employees, roads, footpaths, street lightings and other parts of estate area that are located outside the factory premises but within the factory estate.
c) Medicines purchased by the hospital maintained by our organisation and used for treatment of factory employees and their dependents. Expenditure on maintenance, upkeep and other activities relating to such hospital.
d) Expenditure related to maintenance and upkeep of guest houses maintained by organisation.
e) Expenditure related to purchase of LPG cylinders used within industrial canteen.

3. Whether the exemption to a  Gujarat ˜defence formation Gujarat ™ for preparation and generation of E-way bills is applicable to Ordnance factories & other Central Government & public sector Undertakings (PSU Gujarat ™s) that function under the Ministry of Defence, Government of India?

4. Whether exemption on payment of GST on transport of  Gujarat ˜military or defence equipment through a goods transport agency applicable to goods transported by our organisation?

5. Whether Input Tax Credit is to be reversed on finished goods that are destroyed during testing?

6. Whether proportionate Input Tax Credit has to be reversed in cases where lesser payment is made to the supplier due to deduction on account of liquidated damages from supplier Gujarat ™s dues?

7. Being a part of the Ministry of Defence, Government of India, whether the following notifications are applicable to our organisation and what shall be the impact of such notifications: -
a) Notification No. 2/2018-Central Tax (Rate), in relation to services by an arbitrator or an advocate to our organisation.
b) Notification No. 3/2018-Central Tax (Rate), in relation to services supplied by our organisation by way of renting of immovable property to a person registered under the Central Goods and Services Tax Act, 2017.
c) Notification No. 36/2017 - Central Tax (Rate), in relation to payment of tax on reverse charge mechanism on sale of used vehicles, seized and confiscated goods, old and used goods, waste and scrap to a GST registered person.

8) Whether Input Tax Credit on services of passenger vehicles hired by our organisation is available?

Crux:  1.The appellant is not liable to pay GST in any of these abovementioned activities/transactions carried out by them.
2. ITC in respect of the following input services are available to the Appellant:
(a) Maintenance of garden inside the factory premises;
(c) Medicines purchased by the hospital maintained by our organisation and used for treatment of factory employees and their dependents. Expenditure on maintenance, upkeep and other activities relating to such hospital.

ITC in respect of the following input services are not available to the Appellant:
(b) Maintenance and upkeep activities relating to gardens, parks, playground, factory school for children of employees, hall for ,-recreational activities, residential quarter buildings of employees, roads, footpaths, street lightings and other parts of estate area that are located outside the factory premises but within the factory estate.
(d) Expenditure related to maintenance and upkeep of guest houses maintained by organisation.
(e) Expenditure related to purchase of LPG cylinders used within industrial canteen.

6. No, the Appellant is not required to reverse any proportionate Input Tax Credit in cases where lesser payment is made to the supplier due to deduction on account of liquidated damages from suppliers dues.
7. Yes, all the three notifications will be applicable to Ordnance Factory Bhandara.

Order

Summary

Notification No. 12/2017 Central Tax (Rate)

Order dated 24/12/2018

Issue: What is the correct classification of 'Geared Motor' supplied by the applicant?

Crux: Geared Motors supplied by the applicants fall under Tariff Heading 8501.

Order

Summary

Order dated 19/12/2018

Issue: (i) Whether the transaction is a Zero Rated Supply or a Normal Supply under the GST ACT?
(ii) If the said supply is a Zero Rated Supply, then can the same be considered as an export of service under the GST Act?

Crux: 1.The transaction covered under the MSA between the applicant and NES Abu Dhabi is a Zero rated supply.
2.The Services provided by the applicant are Export of Service.

Order

Summary
 

Section 2 of IGST

Section 16 of IGST

Order dated 19/12/2018

Issue: Determination of GST liability by deciding principal supply of the composite supply qua intenance contracts executed between the customer and the Applicant

Crux: It is held that the principal supply in the present case between the applicant and the customer is one of supply of services.

Order

Summary
 

Order dated 19/12/2018

Issue: 1.Whether engine manufactured and supplied solely and principally for use in railways/locomotives are classifiable under HSN Heading 8408 or under HSN Heading 8607 of the Customs Tariff (which has been borrowed for classification purposes under GST regime) as a part used solely or principally for Railways or Tramway Locomotives or Rolling Stock?"
2.Whether availment of input tax credit of tax on common input supplies on behalf of other unit/units registered as distinct person and further allocation of the cost incurred for same to such other units qualifies as supply and attracts levy of GST?
3. If GST is leviable, whether assessable value can be determined by arriving at nominal value?
4. Once GST is levied and ITC thereof is availed by recipient unit, whether the Applicant is required to register itself as an Input Service Distributor for distribution of ITC on common input supplies?

Crux: 1. The engine manufactured and supplied solely and principally for use in railways/locomotives are classifiable under HSN Heading 8408.
2. The applicant is required to pay GST on such supply made to their offices/branches having different registration numbers.
3. In the subject case assessable value can be determined by following the provisions of Rule 30 of the CGST Rules, 2017.
4. Yes as per the provisions of Section 24 of the CGST Act, 2017, the applicant is required to get registered as an ISD.

Order

Summary
 

Section 24 of CGST

Order dated 19/12/2018

Issue: a) Whether the freight charges recovered by the Applicant under the aforesaid contract from the customer without issuance of consignment note will be eligible for exemption from CGST as prescribed in Serial no. 18 of Notification no. 12/2017 – Central Tax Rate F. No. 334/1/2017, dated 28 June 2017 or Notification no. 12/2017 – State Tax (Rate) no. MGST 10/ 7/C.R.103 (11)/ Taxation-1 dated 29 June 2017?

Crux: The Freight charges recovered by the Applicant under the aforesaid contract from the customer without issuance of consignment note would be taxable @ 18% in Terms of Notification No. 11/2017 -Central tax (Rate) dated 28.06.2017.

Order

Summary
 

Notification No. 12/2017 Central Tax (Rate)

Order dated 19/12/2018

Issue: Services provided to (NGO) Non-profit organization registered as Trust having registration U/s. 12AA of Income Tax Act, amounts to provision of service and any grant/ Donation received towards performing specific service towards preservation of environment as specified in notification no 12/2017, Whether amounts to provision of service and liable for GST ?

Crux: The services provided by the applicant to various entities inducing NGO amounts to provision of service. Further, grants/Donations received towards provision of services would be considered as received towards activities relating to preservation of environment as specified in definition at 2 (r) of Notification No. 12/2017- Central Tax (Rate) dated 28/06/2017 and therefore such grants/donations are covered by exemption Notification entry at Sr. No.1 of the said notification.

Order

Summary
 

Notification No. 12/2017 Central Tax (Rate)

Order dated 19/12/2018

Issue: 1.  Whether the amount received for supply of services during the post GST period to the Government of Maharashtra (Home Department) as per the contract in question are taxable under SGST/CGST Act ?
2. If answer to the question No.1 is in affirmative then what is the rate of tax under SGST/CGST?

Crux: 1. The ‘Surveillance Project’ is a works contract as defined in Sub-section 119 of Section 2 of the GST Act and is supply of services as per 6(a) of Schedule II of the GST Act. And therefore the amount received for the supply of services post GST are taxable under the provision of GST Act.
2. The applicant’s taxable supply of services would be liable tax at the rate of 18% (9 % each for CGST and MGST ).

Order

Summary
 

Notification No. 11/2017 Central Tax (Rate)

Order dated 21/12/2018

Issue: 1.Whether the exemption from payment of GST on reverse charge basis under section 9(4) of the CGST Act / SGST Act for receipt of supply of goods and / or services by us from an unregistered person is applicable irrespective of any threshold limit right from 01-07-2017 vide Notification No.8/2017 dated 28.06.2017 read with Notification 38/2017 dated 13-10-2017?
2. Whether any action for recovery of tax under section 9(4) of CGST Act or corresponding provision of SGST Act can be initiated if such tax is not paid for a period from 01-07-2017 to 12 10-2017 within the respective due dates?
3.Whether interest on the delayed payment of CGST / SGST under section 9 (4) of the Act is applicable, when such tax on the relevant transaction/s has been kept on hold till 30-09-2019 by virtue of Notification No. 22/2018 - Central Tax (Rate) dated 06-08 2018?
4. Whether the circular dated 2nd May 2018 (cited supra) will have any effect of taxation including interest on the transaction dated 2nd September 2018?

Crux: 1. The RCM is applicable on the transactions effected from 1.7.2017 to 12.10.2017.
2., 3. & 4. Not answered since the question has been withdrawn by the applicant.

Order

Summary
 

Order dated 20/12/2018

Issue: 1. The question or issue before Your Honor for determination is whether Input Tax Credit ("ITC") can be claimed by the applicant on procurement of Gold coins which are to be distributed to the customers at the end of scheme period for achieving the stipulated lifting or payment criteria?
2. The question or issue before Your Honor is not restricted to the said scheme only. The applicant notifies schemes with similar conditions periodically. So whether the ITC can be claimed in all such similar schemes.

Crux: 1. The applicant cannot claim ITC on procurement of Gold coins which are to be distributed to the customers.
2. The applicant cannot claim ITC on similar schemes in view of answer to Q. No. 1.

Order

Summary
 

Section 17 of CGST

Order dated 15/12/2018

Issue: Whether in the facts and circumstances of the present case, the Contract Bottling Unit is making a taxable supply to the Applicant (i.e. Brand Owner), or, alternatively, whether the Applicant (i.e. brand owner) is making a taxable supply to the Contract Bottling Unit? Correspondingly, whether in the facts and circumstances of the present case, the Applicant (i.e. Brand Owner) is paying consideration to the Contract Bottling Unit by way of bottling charges, or, alternatively, whether the Contract Bottling Unit is paying consideration to the Applicant by way of brand owner surplus?

Crux: There is no supply of goods or services or both by the applicant to the CBUs. The remaining Questions are not answered being out of the purview of this Authority.

Order

Summary
 

Section 7 of CGST

Order dated 03/10/2018

Issue: Whether the Fan Coil Unit is covered under HSN Code 8418 under Goods and Service Tax Act, 2017.”

Crux: Fan Coil Unit would be covered under CTH 8415.

Order

Summary

Order upheld by AAAR

Order dated 28/03/2019

Issue: Whether the Fan Coil Unit is covered under HSN Code 8418 under Goods and Service Tax Act, 2017

Crux:  The Ruling given by the AAR is upheld by the AAAR and warrants no interference.

Order

Summary
 

Order dated 03/11/2018

Issue: Whether the supply of transportation services, rendered by the Applicant, will be exempt from the levy of GST in terms of SI. no. 18 of the Notification no.12/2017 – Central Tax (Rate) dated 28th june , 2017.

Crux: Supply of transportation services, rendered by the Applicant being ‘Composite supply of Works Contract’ is taxable @ 18% in terms of Sr. No. 3(11) of Notification no.11/2017 – Central Tax (Rate) dated 28th june , 2017.

Order

Summary
 

Notification No. 11/2017 Central Tax (Rate)

Notification No. 12/2017 Central Tax (Rate)

Order dated 30/10/2018

Issue:i. Whether applicant’s direction to the seller (directed in agreement dated 21 June 2018) for direct transfer of BP business to MSPL and PM business to MPMPL, respectively would qualify as a ‘supply between the applicant’ and ‘MSPL/MPMPL’ ?
ii. If the answer to the above question is ‘affirmative’ then as the parties are related, even in absence of the actual consideration does the applicant have to attribute a notional consideration and charge GST in line with schedule 1 of GST Act to be compliant?
iii. If the answer to both the questions are ‘affirmative’ then as the recipients (MSPL/MPMPL) are eligible to avail full input tax credit then the notional consideration (percentage of the business transfer value) would be only academic and will the invoice value be considered as open market value?

Crux:1. Applicant’s direction to the seller (directed in agreement dated 21 June 2018) for direct transfer of BP business to MSPL and PM business to MPMPL, respectively qualify as a ‘supply between the applicant’ and ‘MSPL/MPMPL as per para 5 (e) of Schedule-II of Section 7 of the CGST Act.
2. The value is to be determined as per Rule 28 of the CGST Rules, 2017
3. As the value is to be determined as per Rule 28 of the CGST Rules, 2017 and therefore there is no requirement to answer this question.

Order

Summary
 

Rule 28 of CGST

Schedule II of CGST

Order dated 24/10/2018

Issue: Whether the Exemption Notification No.12/2017- Central Tax (Rate) dated 28/06/2017 (Entry No. 3 of the Notfn.) is applicable to the applicant for the Pure services i.e. Security Services rendered to Pimpri Chinchwad Municipal Corporation in relation to functions entrusted to Municipality under Constitution thereby exempting the applicant service provider from the whole of GST.”

Crux: Exemption Notification No.12/2017- Central Tax (Rate) dated 28/06/2017 (Entry No. 3 of the Notfn.) is applicable to the applicant for the Pure services i.e. Security Services rendered to Pimpri Chinchwad Municipal Corporation in relation to functions entrusted to Municipality under Constitution thereby exempting the applicant service provider from the whole of GST.

Order

Summary
 

Notification No. 12/2017 Central Tax (Rate)

Order dated 03/10/2018

Issue:1. Whether exemption under Sr. No. 13 of Notification No. 12/2017 – Central Tax (Rate) dated 28th June 2017 is applicable to the Applicant?
2. Whether the Applicant is liable to get registered under section 22/24 of CGST Act, 2017?
3. If the Applicant is liable to pay GST, then on what value GST liability needs to be discharged, whether on the commission which the Applicant receives from pundits/website users or on the booking value received from website users?

Crux:1. Applicant is not covered under the entry No. 13 of exemption notification No. 12/2017-Central Tax (Rate) dated 28th June 2017 as he is acting as an ” Intermediately” persons .
2. As per the provisions of section 24 of CGST/MGST ACT, the applicant ,is covered under “Electronic commerce operator “. Hence, he is liable to get registered .
3. Applicant is liable to pay GST on the value of commission received from website users/Pundits , not for on total amount received.

Order

Summary
 

Notification No. 12/2017 Central Tax (Rate)

Section 24 of CGST

Order dated 15/10/2018

Issue: Classification of Renting of Buses by the applicant which are further used by Nagpur Municipal Corporation (NMC) for transportation of passengers.

Crux: The activity undertaken by the applicant in the subject case is supply of Rental services of transport vehicles with operators and will be classified under SI. No 10(ii), Heading 9966 of the Notification No 11/2017-Central Tax (Rate) dated 28th June, 2017.

Order

Summary
 

Notification No. 11/2017 Central Tax (Rate)

Notification No. 12/2017 Central Tax (Rate)

Issue: Whether applicant shall charge GST on the consultancy services rendered to Municipal Corporation of Greater Mumbai (MCGM) for an upcoming project of establishment & development of textile museum in Mumbai?

Crux: Agreement made between the appellant and Municipal Corporation of Greater Mumbai (MCGM) is under Article 63/63 Works Contract, so GST is applicable.

Order

Summary
 

Notification No. 12/2017 Central Tax (Rate)

Order dated 10/10/2018

Issue:1) Whether the applicant is liable to pay GST on the supply of goods located outside India to customers within India without physically bringing the goods to India?
2) Whether the out & out supplies in the facts of the present case will be considered as export supplies or exempted supplies for the purpose of the GST?

Crux:1. Applicant is not liable to pay GST on the supply of goods located outside India to customers within India without physically bringing the goods to India as the goods sold in the subject transaction are non-taxable supply and no tax is leviable on them till the time of customs clearance in accordance with and compliance of Section 12 of the Customs Act, 1962 and Section 3 of the Customs Tariff act, 1975.
2. The supplies in the present case would be “non-taxable supply” as per Section 2(78) of the CGST Act, 2017 which means a supply of goods or services or both which is not leviable to tax under this Act or under the Integrated Goods and Services tax Act.

Order

Summary
 

Section 7 of IGST

Section 12 of Custom Act 1962

Section 3 of Custom Act 1975

Order dated 13/10/2018

Issue:1:- Whether CIDCO is covered under the definition of the term ‘Government Entity’ as per Notification No. 31/2017 – Central Tax (Rate) dated 13 October 2017?
2:- If CIDCO falls under the definition of Government Entity, Then Kindly also Clarify Whether the tax rate of 12% (CGST 6% + SGST 6%) is applicable to the contract entered into by the Applicant with CIDCO, in pursuance of Notification No. 24/2017 Central Tax (Rate) dated 1 September 2017 read with Notification No. 31/2017 – Central Tax (Rate) dated 13 October 2017?

Crux:1. CIDCO is constituted and established by the State Government of Maharashtra with 100% participation by way of Equity or Control to carry out the function of development of new township of New Bombay and therefore CIDCO is clearly covered under the definition of ‘Government Entity’.
2. Concessional rate of tax @ 12% would be applicable in respect of supply of goods/services, after coming into effect of Notification No. 31/2017 – Central Tax (Rate) dated 13 October 2017.

Order

Summary
 

Notification No. 31/2017 Central Tax (Rate)

Notification No. 11/2017 Central Tax (Rate)

Order dated 27/09/2018

Issue:1. Whether the procedure to raise the invoice from Mumbai Head Office for imports received at Haldia Port Kolkata where we do not have any separate GST Registration and Charge IGST from Mumbai to our Customers is correct? or do we have to take separate Registration in the State of West Bengal?
2. If we do not need separate registration in west Bengal, can we do the transaction on Mumbai Head Office GSTIN, then in case of issuance of e way bill is it correct to Mention the GSTIN of Mumbai and Dispatch place of Haldia Port ?

Crux:1. The place from where the applicant makes a taxable Supply of Goods shall be his location, in this case, the Mumbai Head Office and since the applicant does not have any godown in the state of West Bengal, the applicant can clear the goods on the basis of invoices issued by the Mumbai Head Office and therefore they need not take separate registration in the State of West Bengal.
2. The applicant need not take separate registration in West Bengal and can do the transaction on Mumbai Head Office GSTIN and it appears to be correct to mention the GSTIN of Mumbai Head Office in the E-way Bill and dispatch place as Customs Warehouse situated at Haldia, Kolkata. However, the aforesaid is subject to issuance of an invoice and paving applicable IGST or CGST+SGST or Compensation Cess etc., as applicable as per the CGST/SGST/UTGST/IGST Acts respectively.

Order

Summary
 

Section 7 of IGST

Section 11 of IGST

Order dated 28/09/2018

Issue: Where the settlement takes place by way of net settlement of differential of the forward rate over the prevailing market rate on the settlement date, the same would be falling within the purview of 'securities' as defined in Section 2(101) of the CGST Act, 2017. As securities are neither 'goods' nor `services' as defined in the CGST Act, 2017, future contracts are not chargeable to GST.

Crux: In forward contracts in cotton sales, being settled by the applicant with the other party to the contract by way of payment of the differential of forward rate and rate fixed by the applicant using his discretion, such rate being different than the market price of cotton on the date of settlement, the same would not be falling within the purview of `securities' as defined in Section 2(101) of the CGST Act, 2017 and would therefore be chargeable to GST.

In the forward contracts in cotton purchase being settled by the applicant with the other party to the contract by way of payment of the differential of forward rate and prevailing market rate on the settlement date, the same would be falling within the purview of 'securities' as defined in Section 2(101) of the CGST Act, 2017 and would therefore not be chargeable to GST.

Order

Summary
 

Order dated 25/09/2018

Issue: 1. Whether MEP activities (Mechanical, Electrical & Plumbing Works) undertaken by the applicant falls within the definition of composite supply of works contract as defined under Section 2(119) of CGST Act?
2. Whether can the applicant charge GST rate of 12% on MEP (Mechanical, Electrical & Plumbing Works) activities by availing the benefit of Central Tax (Rate) Notification No 01/2018 dated 25th January 2018, if the said supplies are in relation to an housing project enjoying Infra status vide F No 13/6/2009-INF dated 30th March 2017 of Government of India, in Ministry of Finance, Dept, of Economic Affairs?

Crux:1. MEP activities (Mechanical, Electrical & Plumbing Works) undertaken by the applicant falls within the definition of composite supply of works contract as defined under Section 2(119) of CGST Act.
2. Not answered for non-submission of requisite details.

Order

Summary
 

Section 2 of CGST

Order dated 25/09/2018

Issue:1. Whether EPC Contract for electrical cable supply and laying work can be classified as contract for building, construction, fabrication, completion, erection, installation, fitting out, improvement, modification, repair, maintenance, renovation, alteration or commissioning of immovable property wherein transfer of property in goods (whether as goods or in some other form) is involved in the execution of such contract.
2. Whether these contracts can be classified as works contracts as per GST Law and whether notification no. 11/2017-Central Tax (Rate) dated 28th June 2017 as amended by notification no.01/2018-Central Tax (Rate) dated 25th Jan 2018 is applicable to the present case?

Crux:1. Electrical cable supply and laying work can be classified as contract for building, construction, fabrication, completion, erection, installation, fitting out, improvement, modification, repair, maintenance, renovation, alteration or commissioning of immovable property wherein transfer of property in goods (whether as goods or in some other form) is involved in the execution of such contract.
2. Contract is classifiable as composite supply of Works Contract as per GST Law and Notification No. 11/2017-Central Tax (Rate) dated 28th June 2017 as amended by notification no. 01/2018-Central Tax (Rate) dated 25th Jan 2018 is applicable to the present case but the rate of GST @ 18% would be applicable in respect of applicant.

Order

Summary
 

Notification No. 11/2017 Central Tax (Rate)

Order dated 17/09/2018

Issue: “Whether “Tile Adhesive” (which includes Tile Adhesive for Normal Application, Glass Tile Adhesive, Tile-on-Tile Application, Tile Adhesive for Stone Heavy Tile Application) and “Tile Grout” (which includes Cement based Tile Grout and Epoxy based Tile Grout) will be classifiable under Entry 24 of Schedule IV of Notification No. 1/2017 Central Taxes (Rate) dated 28.06.2017 (Chapter Heading 3214) liable to CGST at 14% or Entry 97 of Schedule III of Notification No. 1/2017 – Central Taxes (Rate) (Chapter Heading 3824) liable to CGST at 9%?.”

Crux: “Tile Adhesive” (which includes Tile Adhesive for Normal Application, Glass Tile Adhesive, Tile-on-Tile Application, Tile Adhesive for Stone Heavy Tile Application) and “Tile Grout” (which includes Cement based Tile Grout and Epoxy based Tile Grout) will be classifiable under Entry 24 of Schedule IV of Notification No. 1/2017 Central Taxes (Rate) dated 28.06.2017 (Chapter Heading 3214) liable to GST @ 28% (14 % CCGT and SGST).

Order

Summary
 

Notification No. 01/2017 Central Tax (Rate)

Order dated 15/09/2018

Issue:Whether in the facts and circumstances of the case, the Applicant is liable to pay Integrated Goods and Services Tax on the testing services provided to its overseas group entities, being a zero-rated supply?

Crux: The testing services being provided by the applicant in the present case is liable to IGST as the service is completed and is clearly provided in India as per Section 13(3) of the IGST Act, 2018, hence, cannot be treated as zero rated supply.

Order

Summary
 

Section 7 of  IGST

Section 13 of  IGST

Order dated 15/09/2018

Issue:1. What is the classification of the activities transactions carried out by the Applicant Company as mentioned in the statement of facts (Annexure-1). In particular,-
- Do these activities / transactions of renting of work wear qualify as “transfer of right to use” of goods (i.e. workwear) by the Applicant Company to its customers in terms of entry 5 (f) of Schedule II of Central Goods and Services Act, 2017 (‘CGST Act’)?
- Alternatively, do these activities transactions qualify as “transfer of right in goods” in terms of entry 1 (b) of Schedule II of CGST Act?

2. What is the nature of the supply based on the facts and circumstances as mentioned in statement of facts (Annexure-I) i, e., renting of workwear along with other services such as transportation, weekly washing etc. for a single consideration? In particular,-
- Does this supply qualify as “composite supply” as per section 2 (30) of CGST Act?
- Alternatively, does this supply constitute a “mixed supply” under section 2 (74) of CGST Act?

3. In the event the answer to question (2) above is that the transaction undertaken by the Applicant Company qualifies as ‘composite supply’,
- What will be the “principle supply” for the purpose of section 2 (90) of CGST Act?
- What will the applicable rate of GST?
- Whether the conclusion (i.e. the transaction is a ‘composite supply’) will remain the same if in addition to the services covered in question no. 2 above Applicant Company also provides additional service of renting of locker as part of the same consideration?

Crux:1. The activities/transactions of renting of workwear qualify as “transfer of right to use” of goods in terms of entry 5 (f) of Schedule II of Central Goods and Services Act, 2017 (‘CGST Act’)
2. The supply of renting of workwear along with other services such as transportation, weekly washing etc. for a single consideration is a mixed supply under section 2 (74) of CGST Act.
3. The question regarding the “principle supply” for the purpose of section 2 (90) of CGST Act is not required to be answered as the supply of renting of workwear along with other services such as transportation, weekly washing etc. for a single consideration is a mixed supply under section 2 (74) of CGST Act.

Order

Summary

Section 2 of CGST

Schedule II of CGST

Order dated 10/09/2018

Issue:1. Whether applicant is liable to pay IGST under section 5 (3) of IGST Act, 2017.
2 . Whether Serial No.5 of Notification No. 4/2017 – Integrated Tax (Rate) is applicable on supply received by the applicant.

Crux:1. Applicant is liable to payment of IGST under Reverse Charge mechanism as per the provisions and Notification No. 4/2017-Integrated Tax (Rate) dated 28.06.2017.
2. The supplier of Lottery is the State Government of Mizoram and the recipient of supply i.e. Lottery distributor or Agent, is located in Maharashtra therefore Serial No.5 of Notification No. 4/2017 – Integrated Tax (Rate) is applicable on supply received by the applicant.

Order

Summary
 

Notification No. 04/2017 Integrated Tax (Rate)

Section 5 of IGST

Order dated 07/09/2018

Issue:1) Whether Input Tax Credit is admissible in respect of GST paid for hotel stay in case of rent free hotel accommodation provided to General Manager and Managing Director of the Applicant?

2) Whether invoice for quality claim raised by the Applicant on POSCO Daewoo Corporation located in Korea will be treated as “export of service” ?

3) Whether recovery of Parents Health Insurance expenses from employee in respect of the insurance provided by the Applicant amounts to “supply of service” under Section 7 of the Central Goods and Service Tax Act, 2017?

4) If the said recovery amounts to “supply”, what will be the time of supply and value of the said supply?

5) Whether the Applicant can claim input tax credit of GST charged by the insurance company?

Crux:1) Hotel Accommodation is being used by the applicant as a residential premises of their MD/GM which is for the personal comfort of both and therefore in view of the provisions of Section 17(5)(g), they are not eligible to claim the ITC for the same.

2) Refrain from answering this question for incomplete details.

3) The recovery of Parents Health Insurance expenses from employee does not amount to “supply of service” under the GST Laws.

4) Since there is no supply of services there is no question of time and value of the supply.

5) The applicant cannot claim ITC of GST charged by the insurance company as they are not rendering any output services of health insurance to their employees.

Order

Summary
 

Schedule - II of CGST

Section 17 of CGST

Order dated 05/09/2018

Issue:- 1. What is the rate of tax to be levied on the sale of Flats/Units to the prospective buyers? And whether registration of project under Pradhan Mantri Awas Yojana is required?

2. What is the rate of tax to be levied by the supplier from whom we will received Composite works contract service (Inward Supply of composite works contract)? Will it be 12% or 18%?

3. Admissibility of Input tax credit . Whether full ITC is allowable or it will be restricted to output GST liability?

Crux:-
1. The rate of tax to be levied is 12% (8% GST after deducting value of land) in case of Affordable Housing Project. If the project qualifies as an Affordable Housing Project, then registration under Pradhan Mantri Awas Yojana is not required to avail this benefit.

2. This question is required to be raised by the supplier and not by the applicant hence not answered.

3. The applicant will be eligible for ITC subject to fulfilment of conditions as prescribed under the GST Act.

Order

Summary
 

Notification No. 11/2017 Central Tax (Rate)

Order dated 05/09/2018

Issue:- 1. Whether the service supplied by the Applicant under the Service Agreement dated 1 March 2013 constitute a supply of “Support services” falling under HSN code 9985 “Intermediary service” classifiable under HSN code 9961/9962?
2. Whether the service supplied by the Applicant under the Marketing Services Agreement dated 1 December 2012 constitute a supply of “Support services” falling under HSN code 9985 or “Intermediary service” classifiable under HSN code 9961 /9962?
3. Whether the services provided by the Applicant is an export of services as defined under Section 2(6) of the Integrated Goods and Services Tax Act 2017? 

Crux:- 1.(i) The services provided by the applicant in the nature of Research on the matter related to functioning of the holding of company such as – corporate accounting, corporate finance, corporate personnel and labour relations, corporate research and development, quality assurance and corporate intellectual property, and provide Party A with its report of the research thereon would fall under service code tariff 99859 as other support services nowhere elsewhere classified.
(ii) The services provided by the applicant in the nature of Information on Market in the territory which includes – Economic, industrial and technical information on the products falling under the category of the Products and their markets, trends and outlook together with similar information concerning such other industries in the Territory, To provide necessary assistance in business activities (including interpreting) to such representatives, To undertake market surveys of the Products in the Territory and report the results thereof to Party and Ancillary services to all above services, including, but not limited to, those services with regard to finance, accounting, and patent and legal matters would fall under service code tariff 99837 with service description market research services.
2. The services supplied by the applicant under the Marketing Services Agreement would fall under Group 99837 as Market Research Services.
3. The service provided by the ‘Marketing Services Agreement’ would qualify as an export of taxable service.

Order

Summary

Order modified by AAAR

Order dated 19/06/2019

Issue: 1. Whether the service supplied by the Applicant under the Service Agreement dated 1 March 2013 constitute a supply of “Support services” falling under HSN code 9985 “Intermediary service” classifiable under HSN code 9961/9962?
2. Whether the service supplied by the Applicant under the Marketing Services Agreement dated 1 December 2012 constitute a supply of “Support services” falling under HSN code 9985 or “Intermediary service” classifiable under HSN code 9961 /9962?
3. Whether the services provided by the Applicant is an export of services as defined under Section 2(6) of the Integrated Goods and Services Tax Act 2017?

Crux: AAAR modify the ruling made by AAR and pronounce as follows:
1. The service supplied by the Respondent under the Service Agreement dated 1 March 2013 constitutes a mixed supply of services falling under the Heading “accounting services” having SAC 9982, and under the Heading “other professional, technical and business services” having the SAC 9983.
2. The service supplied by the Respondent under the Marketing Services Agreement dated 1 December 2012 constitutes a mixed supply of Services falling under the Heading “Research and Development services” having SAC 9981, under the Heading “Other professional, technical and business services” bearing SAC 9983, and under the Heading “other miscellaneous services” bearing SAC 9997.
3. The Question is not under the jurisdiction of Advance Ruling Authority.

Order

Summary
 

Section 2(13) of IGST

Order dated 04/09/2018

Issue:
i. Whether Central Goods and Service Tax (hereinafter referred to as the ‘CGST’) under Section 9(1) of the CGST Act / Maharashtra Goods and Service Tax (hereinafter referred to as the ‘MGST’) under Section 9(1) of the MGST Act / Integrated Goods and Service Tax (hereinafter referred to as the ‘IGST’) under Section 5 (1) of the IGST Act can be levied on the above mentioned consideration paid for supply of alcoholic liquor for human consumption?”

ii. “Without prejudice to the submissions made elsewhere, if the supply of Beer is held to be a service by way of job work in relation to Beer, what shall be the rate of CGST/UTGST/IGST that shall be levied on the said taxable supply?”

Crux:
1. Taxes have to be discharged by PIL on the fixed fee received and not on costs received.

2. Supply of beer per se is not taxable under GST. What is taxable in the subject case is the job work which is a service provided by PIL to the applicant, for which they are receiving consideration.

Order

Summary

Order upheld by AAAR

Order dated 09/04/2019

Issue: i. Whether Central Goods and Service Tax (hereinafter referred to as the 'CGST') under Section 9(1) of the CGST Act / Maharashtra Goods and Service Tax (hereinafter referred to as the 'MGST') under Section 9(1) of the MGST Act / Integrated Goods and Service Tax (hereinafter referred to as the 'IGST') under Section 5 (1) of the IGST Act can be levied on the above mentioned consideration paid for supply of alcoholic liquor for human consumption''
ii. 'Without prejudice to the submissions made elsewhere, if the supply of Beer is held to be a service by way of job work in relation to Beer, what shall be the rate of CGST/UTGST/IGST that shall be levied on the said taxable supply''

Crux: AAAR upheld the ruling given by the ARA in as much as the activities performed by the PIL, on the goods of the Appellant, are in the nature of the Job work and accordingly attract 18% GST.

Order

Summary
 

Section 9 of CGST

Order dated 28/08/2018

Issue:  The amount collected by individual Lions clubs and Lions District is for convenience of Lion members and pooled together only for paying Meeting expenses & communication expenses and the same is deposited in single bank account. As there is no furtherance of business in this activity and neither any services are rendered nor are any goods being traded. Whether registration is required?

Crux: The applicant is not required to get registration.

Order

Summary

Order dt. 24/03/2019

Issue:-Whether The amount collected by individual Lions clubs and Lions District is for convenience of Lion members and pooled together only for paying Meeting expenses & communication expenses and the same is deposited in single bank account. As there is no furtherance of business in this activity and neither any services are rendered nor are any goods being traded. Whether registration is required?

Crux:  AAAR set aside the ruling made by AAR and subsequently held that Lions Club of Poona Kothrud, on account of the activities undertaken by them, is liable for taking registration for discharging their GST liability.

Order

Summary

Order dated 24/08/2018

Issue: Whether GST is applicable on Reimbursement of salary on behalf of foreign entity?

Crux: Applicant is not liable to pay GST on Salary amount received from foreign entity and disbursed to the Crew as the applicant acting as a pure agent under Rule 33 of the CGST Rules, 2017.

Order

Summary
 

Rule 33 of CGST

Order dated 20/08/2018

Issues:Question 1:- “Whether on facts and circumstances of the case, the Unleavened Flatbreads be treated as ‘Khakra, plain chapatti or roti under Entry No. 99 A of Schedule / of Notification No. 01/2017-lntegrated Tax (Rate) dated 28 June 2017, Notification Number 1/2017-Central Tax (Rate), dated 28 June 2017 and Notification Number 1/2017-State Tax (Rate) No. MGST 1017/ C.R. 104/Taxation-l, dated 29 June 2017 (collectively referred to as the ‘Rate Notifications’)

If not, whether on facts and circumstances of the case, the Unleavened Flatbreads be classified:

(i) as ‘bread’ as mentioned under Entry No. 97 of Notification Number 02 Number 2/2017Integrated Tax (Rate), dated 28 June 2017, Notification Number 2/2017-Central Tax (Rate), dated 28 June 2017 and Notification Number 2/2017-State Tax (Rate) No. MGST1017/ C.R. 103(1 )/Taxation-l, dated 29 June 2017 (collectively referred to as the ‘Exemption Notifications’); or

(ii) as Malt extract, food preparations of flour, groats, meal, starch or malt extract not containing coca or containing less than 40% by weight of coca calculated on a totally defatted basis, not elsewhere specified or included [other than preparations for infants or young children, put up for retail sale and mixes and doughs for the preparation of bakers’ wares of heading 1905]on a totally defatted basis not elsewhere specified or included (other than preparations for infants or young children, put up for retail sale and mixes and doughs for the preparation of bakers’ wares of heading 1905) under Entry No. 13 of Schedule III of Rate Notification or

(iv) Any other Schedule Entry as per Rate Notification or Exemption Notification as your good office thinks fit

Question 2:- “Whether on facts and circumstances of the case, the Leavened Flatbreads be treated as ‘as ‘bread’ as mentioned under Entry No. 97 of Exemption Notifications

If not, whether on facts and circumstances of the case, the Leavened Flatbreads be classified:

(i) Pizza Bread as mentioned under Entry No. 99 of Schedule I of Rate Notifications; or

(ii) as Malt extract, food preparations of flour, groats, meal, starch or malt extract not containing coca or containing less than 40% by weight of coca calculated on a totally defatted basis, not elsewhere specified or included (other than preparations for infants or young children, put up for retail sale and mixes and doughs for the preparation of bakers’ ivares of heading 1905]on a totally defatted basis not elsewhere specified or included (other than preparations for infants or young children, put up for retail sale and mixes and doughs for the preparation of bakers’ wares of heading 1905) under Entry No. 13 of Schedule III of Rate Notification or

(i) Any other Schedule Entry as per Rate Notification or Exemption Notification as your good office thinks fit

Question 3:- “Whether on facts and circumstances of the case, Corn Chips, Corn Taco and Corn, Taco Strips supplied be treated as ‘wafer’ under Entry No. 16 of Schedule III Rate Notifications

If the same is not classifiable as ‘wafer’, whether on facts and circumstances of the case, the Corn Chips, Corn Taco and Corn Taco Strips be classified

(i) as ”Malt extract, food preparations of flour, groats, meal, starch or malt extract not containing coca or containing less than 40% by weight of coca calculated on a totally defatted basis, not elsewhere specified or included (other than preparations for infants or young children, put up for retail sale and mixes and doughs for the preparation of bakers’ wares of heading 1905]on a totally defatted basis not elsewhere specified or included (other than preparations for infants or young children, put up for retail sale and mixes and doughs for the preparation of bakers’ wares of heading 1905)” under Entry No. 13 of Schedule III of Rate Notification; or

(ii) Any other Schedule Entry as per Rate Notification or Exemption Notification as your good office thinks fit

Question 4:-“Whether on facts and circumstances of the case, Pancakes supplied be treated as All Goods i.e. Waffles and wafers other than coated with chocolate or containing chocolate; biscuits; Pastries and cakes (other than pizza bread, khakhra, plain chapatti or roti, Waffles and wafers coated with chocolate or containing chocolate, papad, bread) as mentioned under Entry No. 16 of Schedule III of Rate Notifications.

If not, whether on facts and circumstances of the case, the Pancakes be classified any other Schedule Entry as per Rate Notification or Exemption Notification as your good office thinks fit.

Question 5:- ” Whether on facts and circumstances of the case, Pizza Base supplied be treated as ‘Pizza Bread’ as mentioned under Entry No. 99 of Schedule / of Rate Notifications.

If not, whether on facts and circumstances of the case, the Pizza Base be classified any other Schedule Entry as per Rate Notification or Exemption Notification as your good office thinks fit

Crux: -1: – The Unleavened Flatbreads products such as plain chapatti, Tortilla, Tortilla Wraps, roti, Roti rolls, Wraps, Paratha and Paratha wraps are covered under Entry No. 99 A of Schedule I and they would be liable to tax @ 5% (2.5 % each for CGST and MGST and 5 % for IGST).

2 :- The product Leavened Flatbreads stated in application such as Naan, Kulcha and Chalupa are not covered by the expression ‘bread’ as mentioned under Entry No. 97 of Exemption Notifications but they would be covered under residual entry 453 of schedule III of GST ACT and they would be liable for taxes @ 18 %( 9% CGST and 9% MGST ). However Pita Bread is covered by the expression ‘bread’ as mentioned under Entry No. 97 of Exemption Notifications.

3 :- The products like Corn Chips, Corn Taco and Corn , Taco Strips would be treated as ‘wafer’ under Entry No. 16 of Schedule III of Rate Notifications and it would be liable for taxes @ 18 %(9% CGST and 9% MGST ).

4:- The product Pancakes supplied by the applicant would be treated as All Goods as mentioned under Entry No. 16 of Schedule III of Rate Notifications and it would be liable for taxes @ 18 %( 9% CGST and 9% MGST ).

5 :- The product, Pizza Base supplied by the applicant would be treated as ‘Pizza Bread’ as mentioned under Entry No. 99 of Schedule / of Rate Notifications and it would be liable for taxes @ 18 %( 9% CGST and 9% MGST ).

Order

Summary
 

Notification No. 01/2017 Integrated Tax (Rate)

Notification No. 02/2017 Integrated Tax (Rate)

Order dated 14/08/2018

Issue: Whether on transfer of machines & moulds (being “capital goods”), from the premises of the job-worker to another job-worker, which were originally received by said job-worker under the erstwhile Central Excise Act, 1944 will constitute as “supply” under GST?

Crux: Transaction of transferring the capital goods from the first job worker to the second job worker would be an independent and fresh transaction and the same would be treated as supply of goods and will be liable to tax under the GST Laws.

Order

Summary
 

Section 7 of CGST

Rule 117 of CGST

Order dated 10/08/2018

Issue:-i. Whether the “Commission” received by the Applicant in convertible Foreign Exchange for rendering services as an “Intermediary” between an exporter abroad receiving such services and an Indian importer of an Equipment, is an “export of service” falling under section 2(6) & outside the purview of section 13 (8) (b), attracting zero-rated tax under section 16 (1) (a) of the Integrated Goods and Services Tax Act, 2017?
ii. If the answer to the Q. (i) is in the negative, whether the impugned supply of service forming an integral part of the cross-border sale/purchase of goods, will be treated as an “intra-state supply” under section 8 (1) of the IGST Act read with section 2(65) of the MGST Act attracting CGST/MGST ? And, if so at what Rate?

Crux:- i. Though Applicant is providing the service to the foreign supplier of goods as an integral part of the international/cross-border transaction of export/import, and also receiving valuable consideration’ in freely convertible foreign exchange, but still it is not considered as Export of service’ as the condition No. (iii) (the place of supply of service is outside India;) in section 2(6) is not getting fulfilled because as per Section 13 (8) (b) the place of supply of Intermediary Services shall be the location of the supplier of services i.e. in taxable territory.
ii. In case the intermediary services are provided to the recipient located outside India, the inter-state provisions as contained under section 7(5)(c) shall be applicable. The said supply will be treated as Inter-State Supply and not Intra State Supply and IGST will be levied @ 18%.

Order

Summary

Order modify by AAAR

Order dated 22/03/2019

Issue: Whether the 'Commission' received by the Applicant in convertible Foreign Exchange for rendering services as an 'Intermediary' between an exporter abroad receiving such services and an Indian importer of an Equipment, is an 'export of service' falling under section 2(6) & outside the purview of section 13 (8) (b), attracting zero-rated tax under section 16 (1) (a) of the Integrated Goods and Services Tax Act, 2017?"

Crux: It is beyond the Jurisdiction of Authority to determine POS thus the impugned ruling passed by the Advance Ruling Authority is hereby quashed.

Order

Summary

Section 2 of  IGST

Section 7 of  IGST

Section 8 of  IGST

Section 12 of  IGST

Section 13 of  IGST

Issue: Whether GST is applicable on Sale and /on Purchase of DFIA licenses?

Crux: DFIA is duty exemption scheme and does not give any duty credit. DFIA cannot use for payment of Customs Duty. Thus ‘DFIA’ is distinguished from ‘duty credit scrips’ and hence it is not Duty Credit Scrip as envisaged under the Serial No. 122A of Notification 1/2017 Central Tax (Rate) inserted vide Notification No.35/2017-Central Tax(Rate) dated 13.10.2017 even if it falls under CTH 4907. DFIA will fall under Chapter 4907 and attract applicable GST.

Order

Summary

Order modified by AAAR

Order dated 13/03/2019

Issue: Whether GST is applicable on sales and/or Purchase of DFIA as serial no. 122a of the Notification No. 2/2017 - C.T. (Rate) inserted vide Notification No. 35/2017-C.T. (Rate) dated 13/10/2017 exempts duty credit scrip.

Crux: AAAR, hereby, set aside the ruling pronounced by the AAR and hold that the No GST is applicable on the sale or purchase of DFIA, which are equivalent to the duty credit scrips , as provided in Sr. 122A of the Notification 02/2017-C.T. (Rate) dated 28.06.2017 as amended by the Notification No. 35/2017-C.T. (Rate) dated 13.10.2017.

Order

Summary
 

Notification No. 01/2017 Central Tax (Rate)

Issue: Whether the Bounce Charges collected by the Applicant should be treated as a supply under the GST regime?

Crux: Recovery of bounce charges is made in view of toleration of the act of the client by the applicant and therefore construes as ‘supply’ as per as per Sr. No. 5(e) of Sch. II of the CGST Act and is therefore taxable under the GST Act.

Order

Summary

Order upheld by AAAR

Order dated 14/03/2019

Issue: Whether the Bounce Charges collected by the Applicant should be treated as a supply under the GST regime?

Crux: AAAR upheld the ruling pronounced by ARA and also ruled that bounce charges will attract GST.

Order

Summary
 

Notification No. 12/2017 Central Tax (Rate)

Schedule II

Order dated 06/08/2018

Issue: 1. Whether the Penal Interest is to be treated as interest for the purpose of exemption under Sr. No. 27 of Notification No. 12/2017 Central Tax (Rate) dated 28.06.2017, Sr. No. 27 of Maharashtra State Notification No. 12/2017-State Tax (Rate) dated 29.06.2017, and Sr. No. 28 of Notification No. 9/2017-Integrated Tax (Rate) dated 28.06.2017?

2. If the answer to the above is negative, whether the activity of collecting penal interest by the Applicant would amount to a taxable supply under the GST regime?

Crux:1. Exemption for financial transactions under GST laws is only in respect of the interest/discount earned or paid for loans, deposits or advances. Disputed transaction fails the test of being a “loan”, “deposit” or “advance”, or the consideration is not an interest or discount, the exemption is not admissible.

2. Recovery of penal charges is made in view of toleration of the act of the loanee by the applicant and therefore construes as ‘supply’ as per as per Sr. No. 5(e) of Schedule II of the CGST Act and is therefore taxable under the GST Act.

Order

Summary

Order upheld by AAAR

Order dated 14/03/2019

Issue: i) Whether the Penal Interest is to be treated as interest for the purpose of exemption under Sr. No. 27 of Notification No. 12/2017-Central Tax (Rate) dated 28.06.2017, Sr. No. 27 of Maharashtra State Notification No. 12/2017-State Tax (Rate) dated 29.06.2017, and Sr. No. 28 of Notification No. 9/2017-Integrated Tax (Rate) dated 28.06.2017?
ii) If the answer to the above is negative, whether the activity of collecting penal interest by the Appellant would amount to a taxable supply under the GST regime?”

Crux: AAAR upheld the the ruling given by AAR by observing that the penal charges / penalty recovered by the Appellant from their borrowers on account of the delay in payment of EMI by borrowers are adequately covered under clause 5 (e) of the Schedule II of the CGST Act, and will attract GST.

Order

Summary

AAAR Order

Order dt. 12/12/2019

Issue:-1. Whether the Penal Interest is to be treated as interest for the purpose of exemption under Sr.No.27 of Notification No.12/2017-Central Tax (Rate) dated 28.06.2017, Sr. No. 27 of Maharashtra State Notification No.12/2017-State Tax (Rate) dated 29.06.2017, and Sr. No. 28 of Notification No.9/2017-Integrated Tax (Rate) dated 28.06.2017'

2. If the answer to the above is negative, whether the activity of collecting penal interest by the Appellant would amount to a taxable supply under the GST regime

Crux: AAAR hereby, held that the additional/Penal interest recovered by the Applicant from their customers against the delayed payment of monthly instalments of the loan extended to such customers, would be exempt from GST in terms of serial no. 27 of the Notification no. 12/2017-C.T. (Rate) dated 28.06.2017.

Order

Summary
 

Notification No. 12/2017 Central Tax (Rate)

Schedule II

Issue: 1. Whether the whole (Sheep/Goat) animal carcass in its natural shape in frozen state in different weight and size packed in LDPE bags without mentioning the weight and one or two such LDPE bags further packed in HDPE bags being supplied to Army by applicant against tender shall qualify as product put up in “unit container”.
2.Whether the products as mentioned in query 1 shall be taxable under GST as per entry no. 4 of schedule II of the Notification no. 1/2017-Integrated Tax (Rate) dated 28th June 2017 up to 14th November 2017 and thereafter as per entry no.l of schedule I of the Notification No. 43/2017-Integrated Tax (Rate) dated 14th November 2017 or fall under exemption list as per entry no 10 of Notification No. 2/2017-Integrated Tax (Rate) New Delhi dated 28th June 2017 up to 14th November 2017 and thereafter as per entry no. 9 of the Notification No. 44/2017-Integrated Tax (Rate) dated 14th November 2017.

Crux: 1. The supply of whole sheep/goat carcass in frozen state packed in LDPE bag and further packed in HDPE bag which do not indicate any information related to weight /number of the carcass packed in such bags would tantamount to being as a product not put up in a unit container for the purpose of notification 1/2017 and 2/2017- Integrated Tax (Rate) dated 28th June, 2017.
2. The impugned product would be covered by notification 2/2017 – Integrated Tax (Rate) dated 28th June 2017 as amended by serial no.9 of the Notification no.44/2017 – Integrated Tax (Rate) dated 14th November 2017 and would be exempt from whole of GST.

Order

Summary
 

Notification No. 01/2017 Integrated Tax (Rate)

Notification No. 02/2017 Integrated Tax (Rate)

Notification No. 44/2017 Integrated Tax (Rate)

Order dated 01/08/2018

Issue: 1. Whether the activity of BCSBI I.e. The Applicant is falling under the definition of “Supply”, as per Section 7 of the CGST Act, 2017?
2. Whether the contribution made by Member Banks to “Corpus Fund” can be considered as “Consideration”, as per Section 2 (31) of the CGST Act, 2017, when the said is not “Income” of the Applicant?
3. Supply is meant to be between 2 persons, whether the Applicant Association/Trust and Its Members are legally distinct from each other?
4. Whether “Principle of Mutuality” hold good in GST?
5. Whether the activity of Applicant is to be termed as “Business” as provided under Section 2 (17) (e) of the CGST Act, 2017?

Crux: 1. Publishing literature, advertisements, etc representing their member banks implies that the public at large are being made aware about their member banks, would tantamount to supply of service to the said member banks.
2. Contribution in the form of Annual Membership Fee and Registration Fee made by Member Banks to “Corpus Fund” are being utilized by the applicant for generating further income as found feasible by them. Thus the consideration is clearly in the form of Annual Membership Fee and Registration Fee.
3. Banks have been constituted as per The Banking Regulation Act, 1989 and thus are a separate legal entity from the applicant body.
4. As regards “Principle of Mutuality” in GST the issue is now pending before the Honorable Supreme Court of India (Constitution Bench). As such, till such time as the issue is settled by the Apex Court, the Principle of Mutuality should be extended to the levy of GST and no GST is leviable on the their activity even under the CGST Act, 2017 and the Rules made there under”.
5. service in the form of providing facilities or benefits to its Member Banks for a subscription would be covered in definition of business as given in section 2(17) (e) of GST ACT.

Order

Summary
 

Section 2 of CGST

Order dated 31/07/2018

Issue: Whether amortized value of the tool received on Free of Cost (FOC) basis from the customer is required to be included in the value of finished goods manufactured and supplied by the applicant to the customer?

Crux: The amortized value of the tool received on FOC basis from the customer is not required to be included in the value of finished goods manufactured and supplied by the applicant to the customer as the cost of moulds/ dies was not to be incurred by the component manufacturer and thus, does not merit inclusion in the value of supply in terms of section 15(2)(b) of the Central Goods and Services Tax Act, 2017.

Order

Summary

Circular No. 47/21/2018-GST

Section 15 of CGST

Order dated 30/07/2018

Issue: Whether the “Electric Overhead Traveling Grab Crane (EOT Grab Crane) ” to be supplied by the applicant to the buyer for use in the waste-to-energy project is covered under SI. No 234 of Schedule I of Notification 1/2017 dated 28.06.2018- IGST (Rate) as ‘Renewable energy devices and parts for the manufacture of waste to energy plants/devices’, attracting 5% levy?

Crux: “Electric Overhead Traveling Grab Crane (EOT Grab Crane)” supplied by the applicant for use in the waste-to-energy project is covered under SI. No 234 of Schedule l of Notification 1/2017 dated 28.06.2018 – IGST (Rate) as ‘Renewable energy devices and parts for the manufacture of waste to energy plants/devices’, attracting 5% levy.

Order

Summary
 

Notification No. 01/2017 Integrated Tax (Rate)

Order dated 27/07/2018

Issue:1. Whether GST is leviable on the transportation charges Levied by the Applicant on PGCIL?
2. In case the GST is payable, what would be the rate of GST to be charged on such charges?

Crux:1) The supply of transportation service in the present case is not supply of standalone service but integral component of composite supply in the nature of works contract as defined u/s 2 (119) and the entire contract is a supply of services as per entry 6(a) of schedule II of the GST Act, hence the applicant is liable to pay GST.
2) GST in the present case would be liable at 18% as per entry at Sr. no. 3(ii) of the Notification No. 11/2017 of Central Tax (Rate) dt. 28/06/2017 and corresponding notification under the MGST Act.

Order

Summary
 

Notification No. 11/2017 Central Tax (Rate)

Order dated 27/07/2018

Issue: Whether the marketing, promotion and distribution services (hereinafter referred to as the “Said Services”) provided by Sabre India to Sabre APAC would be subject to tax under the Central Goods & Services Tax Act 2017 and the Maharashtra Goods & Services Tax Act 2017 (hereinafter referred to as ” Said Tax Acts “) or would remain excluded under the said Acts as the said activities qualify as export of Service in accordance to Section 2(6) of the Integrated Goods and Service Tax Act 2017 read with the said Tax Acts?

Crux: The marketing, promotion and distribution services provided by the applicant to Sabre APAC would be subject to tax under the provisions of the GST Act as the applicant actually acts as an Intermediary between the potential subscriber and Sabre APAC and in case the intermediary services are provided to the recipient located outside India, the inter-state provisions as contained under section 7(5) (c) shall be applicable and hence IGST is payable under such transaction.

Order

Summary

Order modify by AAAR

Order dated 10/04/2019

Issue: Whether the marketing, promotion and distribution services (hereinafter referred to as the 'Said Services') provided by Sabre India to Sabre APAC would be subject to tax under the Central Goods & Services Tax Act 2017 and the Maharashtra Goods & Services Tax Act 2017 (hereinafter referred to as ' Said Tax Acts ') or would remain excluded under the said Acts as the said activities qualify as export of Service in accordance to Section 2(6) of the Integrated Goods and Service Tax Act 2017 read with the said Tax Acts

Crux: AAAR modify the ruling ruled by AAR and hold that the entire gamut of activities of the Appellant is in the nature of the composite supply, of which intermediary services is the principal supply. Further, as regards the services provided by the Appellant to their Client, namely Sabre APAC is export or otherwise, this issue is outside the purview of ARA.

Order

Summary
 

Section 2 of  IGST

Section 7 of  IGST

Jotun India Private Limited v/s Shri B. V. Borhade, Joint Commissioner of State Tax, Shri Pankaj Kumar, Joint Commissioner of Central Tax.

Order dated 26/07/2018

Issue: Whether marine paints supplied by the applicant, would be considered to be a part of ship and accordingly be then classified under SI No. 252 of Schedule I of Notification No. 1/2017 of Central Tax (Rates) dated June, 28, 2017.

Crux: Marine paints supplied by the applicant, are clearly consumable items and not parts and accordingly not covered under Serial No.252 of Schedule 1 of Notification No 1/2017 of Integrated Tax (Rates) dated June 28, 2017.

Order

Summary

Order upheld by AAAR

Order dated 05/02/2019

Issue: Whether marine paints, supplied by the Appellant, would be considered to be part of ship and accordingly, be then classified under SI. No. 252 of the Schedule I of the Notification No. 1/2017 of Central Tax (Rates) dated 28.06.2017.

Crux: AAAR do not find any reason to interfere with the ruling pronounced by the Advance Ruling Authority that Marine paints supplied by the applicant, are clearly consumable items and not parts and accordingly not covered under Serial No.252 of Schedule 1 of Notification No 1/2017 of Integrated Tax (Rates) dated June 28, 2017.

Order

Summary
 

Notification No. 1/2017  Integrated Tax (Rate)

Order dated 08/07/2018

Issue: Whether the supply of Global Positioning System, Echo Sounder, Radio Detecting and Ranging, Electronic Charts Display & Information System, Gyroscope, Automatic Identification System, Doppler Speed Log, Medium/High Frequency Communication, Very High frequency, Satellite Communication/FIeet Broad band, Ship Security Alert System, Navigational Telex, Emergency Positioning Indicating radio Beacon, Voyage Data Recorder, Non Directional Beacon, Fish Finder, Sound Navigation and Ranging, Life saving/ Fire Fighting Appliances, Bridge Navigation Watch Alarm System, Search and Rescue Transponder, Anemometer and Walkie talkie is classifiable as “Parts of goods of headings 8901, 8902, 8904, 8905, 8906, 897” under entry 252 of Schedule 1 of CST Notification No. 01/2017-Central tax (rate) dated 28th June, 2017 as amended and liable to GST @ 5% (CGST-2.5% and SGST-2.5%) or IGST @ 5% or not.

Crux: The goods that are used in equipments mentioned at Sr. Nos. Global Positioning System, Echo Sounder, Radio Detecting and Ranging, Electronic Charts Display & Information System, Gyroscope, Doppler Speed Log, Medium/High Frequency Communication, Very High frequency, Satellite Communication/FIeet Broad band, Ship Security Alert System, Emergency Positioning Indicating radio Beacon and Bridge Navigation Watch Alarm System of the table will liable to GST @ 5% (CGST-2.5% and SGST-2.5%) or IGST @ 5% under entry 252 of Schedule 1 of GST Notification No. 01/2017-Central tax (rate) dated 28th June, 2017 as amended and schedule 1 of Notification No. 01/2017-Integrated Tax (Rate), dated 28-06-2017 as amended.

Order

Summary

Order modified by AAAR

Order dated 05/02/2019

Issue: Whether AIS, SAT-C/FBB, NAVTEX & 2 Way RT, VDR, FCV, SONAR SART are chargeable to tax @ 5% under Sr.No.252 of the Notification No.1/2017 C.R. (Rate) dt.28.06.2017?

Crux: AAAR modified the ruling pronounced by the Advance Ruling Authority vide their Order no. GST-ARA-14/2017-18/B-71 dated 18.07.2018 and hold that ‘Automatic Identification System'(AIS),’NAVTEX’ and ‘SART’ are covered by Sr. No.252 of Notification No.1 of 2017 -Central Tax (Rate). However uphold the ruling of the Advance Ruling Authority to the extent that ‘SONAR and Fish Finder’, ‘Voyage Data Recorder’ (VDR) and ‘Two Way RT Walkie-Talkie’ would not be covered by Sr. No.252 of Notification No.1 of 2017 -Central Tax (Rate).

Order

Summary
 

Notification No. 01/2017 Central Tax (Rate)

Order dated 18/07/2018

Issue: The Maharashtra Rajya Sahakari Sangh Ltd. conducts education and training programmers through its 13 co-operative training centres and 33 district co-operative boards by charging fees to participants. Maharashtra Rajya Sahakari Sangh Ltd. is not profit making body and doing this activity as statutory requirement of Maharashtra Co-operative Societies Act,1960. Therefore, it is requested to exempt GST to Maharashtra Rajya Sahakari Sangh Ltd.

Crux: The applicant is a person (as defined under Section 2(84) of the GST Act), who is supplying services (as defined under Section 7(1) of the GST Act) in the nature of educational, coaching and training to its members only (and not non members), for a consideration (as defined under Section 2(31)). The applicant is not funded in any way by the Government, hence, there is no exemption in respect of their supply and same is liable to GST at applicable rates.

Order

Summary
 

Notification No. 12/2017 Central Tax (Rate)

Order dated 16/07/2018

Issue:
A. Whether our product or goods fall under chapter tariff heading 0204 and exemption given to this tariff item vide Notification No. 02/2017 – Central Tax (Rate) dated 28/06/2017 is available to us or not ?

B. We are supplying meat in HDPE gunny Bag. Whether it is treated as unit container or not?

Crux:
A. Frozen meat of sheep / goat in HDPE gunny bag which do not indicate any information related to weight / number of carcass packed in such bags would tantamount to being as a product not put up in unit container and thus falls under chapter tariff heading 0204 and is further covered by serial no. 9 of Notification No.2/2017 Integrated Tax (Rate) dated 28/06/2017 as amended.

B. Frozen meat of sheep / goat in HDPE gunny bag on which applicant are not mentioning or printing any weight / pre-determined quantity/number on such bag and also in one bag they are not packing standard/fixed quantity. Hence the bag is not a unit container.

Order

Summary
 

Notification No. 02/2017 Integrated Tax (Rate)

Notification No. 44/2017 Integrated Tax (Rate)

Order dated 11/07/2018

Issue: 1. Whether liquidated damages that may be awarded to the applicant by the International Chamber of Commerce ("ICC") qualifies as a "supply" under the GST law, thereby attracting the levy of GST?
2. If the answer to Question No.1 is in the affirmative, what should be the time of supply, that is to say, the point of time in which NACC"s liability to pay GST arises ?
3. If the answer to Question No.1 is in the affirmative, what should be the value of supply on which GST is payable, that is to say, whether the applicant is liable to pay GST on amount of liquidated damages claimed and awarded to the applicant under the arbitral award or the amount which is actually received by the applicant after conclusion of the matter before the final appellate authority

Crux:  1.The liquidated damages that may he awarded to the applicant by the International Chamber of Commerce ("ICC") would be treated as "supply" under section 7 of the CGST Act.
2.The time of supply would be determined as per the provisions of Section 13 of the CGST Act after the award of arbitration proceedings is given by the Arbitration Tribunal as administered by the ICC as per the Association Agreement by the parties to dispute, in the present proceedings.
3.The value of supply will be the actual amount of damages received by the applicant from SPL after the award by ICC

Order

Summary
 

Order dated 11/07/2018

Issue: Whether under which HSN Code Product (Disc Brake Pads "DBP) to be classified under 6813 or under 8708 as there are different rate charged in both code"?

Crux: The Product i.e. Disc Brake Pads falls under chapter heading 8708 and would be liable to tax @28% (14% each under CGST and MGST Act).

Order

Summary
 

Notification No. 01/2017 Central Tax (Rate)

Order dated 11/07/2018

Issue:- What rate of tax to be charged by the sub-contractor to main contractor on Works Contract Services (WCS) pertaining to railways original works contract?

Crux:- The tax rate to be charged by the sub-contractor to the main contractor would be @ 6% of CGST and SCST each as per Sr. No. 3 of Notification No. 11/2017, in the present case.

Order

Summary

Order upheld by AAAR

Order dated 03/01/2019

Issue:- Clarification for rate of tax to be levied by the sub-contractor to main contractor for original contract work pertaining to railways

Crux:- AAAR uphold the ruling pronounced by the Advance Ruling Authority vide their Order No. GST-ARA-09/2018-19/B-65 Mumbai dated 11.07.2018 that the tax rate to be charged by the sub-contractor to the main contractor would be @ 6% of CGST and 6% of SGST.

Order

Summary
 

Notification No. 11/2017 Central Tax (Rate)

Order dated 11/07/2018

Issue:
1. Whether the expression “Parts of goods of headings 8901, 8902, 8904, 8905, 8906, 8907” in entry number 252 of the Schedule 1 of the Notification No 01/2017-lntegrated Tax (Rate) covers specific list of goods attached herewith (Refer Annexure B)?

2. What will be the rate of tax for the specific list of inputs raw materials, parts and consumables etc., purchased or imported for use in manufacture of warship?

3. What procedure is required to be followed with Vendors if rate of tax applicable is as per entry no. 252 of the Schedule I.

4. If the rate of tax applicable to all or any of these items is 5% and if the vendor has charged higher rate of tax, whether the Company would be eligible for input tax credit at 5% or the actual tax paid to the Vendors?

Crux:
1. Only those essential essential parts of of warships will be covered under entry number 252 of the schedule 1 of the Notification No 01/2017-lntegrated Tax (Rate) without which a ship cannot be imagined to be in existence.

2. The items/goods which are considered as parts of warships, will be covered under entry number 252 of the schedule 1 of the Notification No 01/2017-lntegrated Tax (Rate) and liable to GST @ 5% (2.5% each under CGST and SGST) and for the other items, the tax rate will be applicable as per the respective Scheduled Entry in which the goods fall.

3. This question is outside the purview of this Authority.

4. This answer is outside the purview of this Authority.

Order

Summary
 

Notification No. 01/2017 Integrated Tax (Rate)

Summary

Order dated 09/07/2018

Issue:-1. Whether the sale of goods, which are located outside India, would be liable to tax in India under section 7(5) (a) of Integrated Goods and Services Tax Act, 2017?
2. Whether the recipient, to whom such goods are sold, be eligible to the input tax credit of such goods?

Crux:1. The goods sold in the subject transaction are non-taxable supply as no tax is leviable on them till the time of customs clearance in accordance with and compliance of Section 12 of the Customs Act, 1962 and Section 3 of the Customs Tariff act, 1975.
2. Not relevant in view of answer to Question No. 1 above.

Order

Summary
 

Section 2 of CGST

Section 5 of IGST

Section 7 of IGST

Section 12 of Custom Act 1962

Section 3 of Custom Act 1975

Order dated 09/07/2018

Issue: What is the rate & HSN code of GST is applicable (after it’s introduction from 1st July 2017) when Extracting water from tube well, passing it through treatment plant of removing unwanted contaminants like Iron from ground water and eventually lifting it to overhead tank (in short the scheme) runs on solar power.

Crux: TSH 9954 is applicable to the subject contract of Extracting water from tube well, passing it through treatment plant of removing unwanted contaminants like Iron from ground water and eventually lifting it to overhead tank and the same would attract a tax rate of 12% (6% each of CGST and MGST).

Order

Summary
 

Notification No. 11/2017 Central Tax (Rate)

Order dated 07/07/2018

Issue: Whether the aforesaid services proposed to be rendered qualify as ‘Zero Rated Supply’ in terms of Section 16 of the Integrated Goods & Service Tax Act, 2017 or not?

Crux: The services proposed to be rendered by the applicant do not qualify as ‘export of services’ as defined u/s.2(6) and thus not a ‘zero rated supply’ as per sec,16(1) of the IGST Act, 2017.

Order

Summary

Order upheld by AAAR

Order dated 26/02/2019

Issues:-whether the aforesaid services rendered qualify as 'Zero Rated Supply' in terms of Section 16 of the Integrated Goods & Service Tax Act, 2017

Crux:-AAAR do not find any reason to interfere with the ruling passed by AAR. Thus, .The services proposed to be rendered by the applicant are in the nature of intermediary services and hence taxable as per the provisions of the place of supply rule, even when the services are being rendered to the client located abroad.

Order

Summary

Section 2 of  IGST

Section 16 of  IGST

Order dated 03/07/2018

Issue:- Whether the construction services provided under the project “Prajapati Magnum” qualifies for the reduced CGST Rate of 6% as provided in Sr.No.3-item (V)-sub item (da) vide Notification 01/2018- CT (Rate) dated 25.01.2018?

Crux:-  The benefit of reduced rate would be available to them only in the cases of supply effected after 25.01.2018 i.e. the date on which Notification 1/2018-Central Tax (Rate) was issued and the benefit of this reduced rate would be applicable in case of only those flats which are of carpet area upto 60 sq mtrs. covered in the category of affordable housing. In case of other flats which have carpet area more than 60 sq.mtrs. the applicant would be required to pay GST at normal applicable rate.

Order

Summary
 

Notification No. 01/2018 Central Tax (Rate)

Order dated 27/06/2018

Issue:- 1. Whether the amount paid to dealer towards "rate difference" post supply can be considered for the purpose of arriving at the 'transaction value' in terms of Section 15 of CGST Act?

2. Whether the amount paid to authorized dealers towards "rate difference" after effecting the supply of goods would be allowed under Section 15(1) read with Section 34(1) of the CGST Act or under Section 15(3) read with Section 34(1) ibid?

Crux:- 1. The amount paid to dealer towards "rate difference" post supply cannot be considered for the purpose of arriving at the 'transaction value' in terms of Section 15 of the CGST Act.

2. The amount paid to the Dealer towards "rate difference" and "special discount" post supply are not complying with the requirements of section 15(3)(b)(i) of the CGST Act and therefore cannot be considered and allowed as discount for the purpose of arriving at the 'transaction value' in terms of Section 15 of the CGST Act.

Order

Summary
 

Section 15 of CGST

Order dated 25/06/2018

Issue: Determination of applicability of Entry No. 72 of Notification No. 12/2017-Central Tax (Rate), dated the 28th June 2017 read with Entry No. 72 of Notification No. 12/2017-State Tax (Rate) dated 29.06.2017 to the services provided by the Applicant under the Information and Communication Technology (ICT) @ School Project.

Crux: The supply of goods and services as made by the applicant under ICT@ School project is not in compliance of all conditions of exemption as notified under Entry No. 72 of Notification No. 12/2017-Central Tax (Rate), dated the 28th June 2017 hence not eligible for exemption.

Order

Summary

Order modified by AAAR

Order dated 04/02/2019

Issue: Determination of applicability of Entry No. 72 of Notification No. 12/2017- CT (Rate), to the services provided by the Appellant under the ICT project?

Crux: AAAR modified the ruling pronounced by the Advance Ruling Authority vide their Order no ARA-48/2017-18/B-55 dated 25.06.2018 and hold that the supplies of goods and services by the appellant to the Director of Education (S & HS) qualifies for exemption in term of Entry No 72 of Notification No 12/2017 – C.T (Rate).

Order

Summary
 

Notification No. 12/2017 Central Tax (Rate)

Order dated 22/06/2018

Issue:1 : Classification of goods (i.e Reactor used in Hand Pump for water disinfection)
2 : GST Rate Applicability on reactor machine which is used in Hand Pump for water disinfection.

Crux: Reactor used by the applicant, in handpumps, for purifying water is classifiable under Tariff Heading 8421 21 90 and they are liable to pay CGST and SGST @ 9% each on such product.

Order

Summary

Order upheld by AAAR

Order dated 04/02/2019

Issue: Whether Reactor manufactured can be considered as parts of the hand pumps or otherwise?

Crux: AAAR do not see any reason to interfere with the Ruling given by AAR, and hold that Reactor used by the applicant, in handpumps, for purifying water is classifiable under Tariff Heading 8421 21 90 and not under 8413 91 and they are liable to pay CGST and SGST @ 9% each on such product.

Order

Summary
 

Notification No. 1/2017 Central Tax (Rate)

Order dated 20/06/2018

Issue:- Whether Rate of Tax on Pure services (excluding works contract service or other composite supplies involving supply of any goods) received by the applicant from Service Providers is NIL as per Entry No 3 of Notification No. 12/2017- Central Tax (Rate) dated 28th June , 2017 ?

Crux:- The applicant is recipient of service and not service providers and also that these services are not under reverse charge mechanism. The Applicant's application cannot be entertained by this authority and is accordingly rejected.

Order

Summary
 

Notification No. 12/2017 Central Tax (Rate)

Order dated 15/06/2018

Issue:A. Whether the classification of Marine Diesel Engine falling under TSH 8408 of Customs Tariff Act, 1975 as adopted to GST attracting 28% of IGST (14% CGST + 14% SGST) as per Schedule IV (Sr. No. 115) of Notification No. 01/2017 – Central Tax (Rate) dated 28.06.2017 is correct or not?

B. Whether the classification of Gear Box falling under TSH 8483 of Customs Tariff Act, 1975 as adopted to GST attracting 28% of IGST (14% CGST + 14% SGST) as per Schedule IV (Sr. No. 135) of Notification No. 01/2017 – Central Tax (Rate) dated 28.06.2017 is correct or not.

C. Whether the goods falling under TSH 8408, 8409 and 8483 of Customs Tariff Act, 1975 as adopted to GST can be treated as ‘parts of heading of 8902, 8904, 8905, 8906 and 8907’ attracting 5% of IGST (2.5% CGST+ 2.5% SGST) as per Schedule I (Sr. No. 252) of Notification No. 01/2017 – Central Tax (Rate) dated 28.06.2017 or not?

Crux:A. Marine Diesel Engine are classifiable under TSH 8408 of Customs Tariff Act, 1975 as adopted to GST attracting 28% of IGST (14% CGST + 14% SGST) as per Schedule IV (Sr. No. 115) of Notification No. 01/2017 – Central Tax (Rate) dated 28.06.2017.

B. Gear Box are classifiable under TSH 8483 of Customs Tariff Act, 1975 as adopted to GST attracting 28% of IGST (14% CGST + 14% SGST) as per Schedule IV (Sr. No. 135) of Notification No. 01/2017 – Central Tax (Rate) dated 28.06.2017.

C. Marine engines and marine gear boxes which are claimed to be supplied by the applicant to dealers and shipyard manufacturers for use in goods falling under heading 8901, 8902, 8904, 8905, 8906 and 8907 will be deemed to be Parts of vessels falling under heading 8901, 8902, 8904, 8905, 8906 and 8907, if they are used in goods covered under Tariff Headings 8901, 8902, 8904, 8905, 8906 and 8907 and are not diverted and used for other purposes somewhere else. If the said goods are used for some other purpose, then the tax rate as applicable to the TSH under GST Tariff would apply.

Order

Summary
 

Notification No. 01/2017 Central Tax (Rate)

Order dated 14/06/2018

Issues:-
1. Whether the applicant which is a charitable trust with the main object of advancement of religion, spirituality or yoga can be said to be in business so as to attract the provisions of Central Goods and Service Tax Act, 2017 and Maharashtra Goods and Service Tax Act, 2017?

2. Whether the applicant which is a charitable trust with main object of the advancement of religion, spirituality or yoga is liable to registration under the provisions of Central Goods and Service Tax Act, 2017 and Maharashtra Goods and Service Tax Act, 2017?

3. Whether sales of spiritual products which is incidental / ancillary to main charitable object of the applicant can be said to be business of the applicant in terms of the definition in Section 2(17) of the Central Goods and Service Tax Act 2017 and option provision of Maharashtra Goods and Service Tax Act 2017?

4. Whether the sale of spiritual products can be said to be supply under Section 7 of the Central General Sales Tax Act, 2017 and equivalent provision of the Maharashtra Goods and Service Tax Act, 2017 so as to attract GST?

Crux:-
1. Applicant is registered under Section 12AA of the Income Tax Act but the activities being undertaken by the applicant in respect of services being provided by them are not covered under the definition of charitable activities within the meaning of definition provided at Definitions at 2 (r) of notification No. 12/2017 Central Tax (Rate) dated 28/06/2017 of the expression charitable activities and in particular advancement of religion, spirituality or yoga.

2. Applicant which is a charitable trust with main object of the advancement of religion, spirituality or yoga is liable to registration under the provisions of Central Goods and Service Tax Act, 2017 and Maharashtra Goods and Service Tax Act, 2017 provided that its aggregate turnover in a financial year exceeds limit prescribed u/s 22 of the GST Act.

3. Sales of spiritual products which is incidental / ancillary to main charitable object of the applicant comes under the definition of business of the applicant in terms of Section 2(17) of the Central Goods and Service Tax Act 2017 and option provision of Maharashtra Goods and Service Tax Act 2017.

4. Sale of spiritual products is supply under Section 7 of the Central General Sales Tax Act, 2017 and equivalent provision of the Maharashtra Goods and Service Tax Act, 2017 so as to attract GST.

Order

Summary

Order upheld by AAAR

Order dated 24/12/2018

Issues:-1. Whether the applicant which is a charitable trust with the main object of advancement of religion, spirituality or yoga can be said to be in business so as to attract the provisions of Central Goods and Service Tax Act, 2017 and Maharashtra Goods and Service Tax Act, 2017'
2. Whether the applicant which is a charitable trust with main object of the advancement of religion, spirituality or yoga is liable to registration under the provisions of Central Goods and Service Tax Act, 2017 and Maharashtra Goods and Service Tax Act, 2017'
3. Whether sales of spiritual products which is incidental / ancillary to main charitable object of the applicant can be said to be business of the applicant in terms of the definition in Section 2(17) of the Central Goods and Service Tax Act 2017 and option provision of Maharashtra Goods and Service Tax Act 2017'
4. Whether the sale of spiritual products can be said to be supply under Section 7 of the Central General Sales Tax Act, 2017 and equivalent provision of the Maharashtra Goods and Service Tax Act, 2017 so as to attract GST'

Crux:-AAAR do not find any reason to interfere with the order of the Advance Ruling Authority that the appellant is engaged in supply of goods and services for consideration and thus constitute supply in the course of business and is therefore liable to get itself registered.

Order

Summary
 

Section 2 of CGST

Section 7 of CGST

Order dated 13/06/2018

Issue: Whether the activity of supply and installation of car parking system’ as works contract’ as defined in Section 2(119) of the CGST Act.

Crux: The transaction of supply and installation of a ‘car parking system’ would qualify as immovable property and thereby ‘works contract’ as defined in Section 2(119) of the CGST Act.

Order

Summary
 

Section 2 of CGST

Order dated 08/06/2018

Issue:1- Classification of Electroink supplied along with consumables under GST .
2: Determination of Time and Value of supply of Electroink with consumables under the Indigo press contract.

Crux:1. The supply of Electro Ink supplied along with consumable is a mixed supply as defined u/s section 2 (74) of the GST Act and is also a continuous supply of goods as defined u/s 2 (32) of the GST Act.
2. The time of supply of Electro Ink supplied along with consumables under the indigo press contract would be the earliest date between the date of invoice or the date of receipt of payment. As regards the value of supply of Electro Ink supplied with consumables under the Indigo Press Contract would be the transactions value as reflected in the invoice issued u/s 31(4) of the GST Act.

Order

Summary

Order upheld by AAAR

Order dated 17/02/2019

Issue: 1. Classification of Electroink supplied along with consumables under GST.'
2: Determination of Time and Value of supply of Electroink with consumables under the Indigo press contract.'

Crux: The AAAR upheld the ruling given by ARA and held that The supply of Electro Ink supplied along with consumable is a mixed supply as defined u/s section 2 (74) of the GST Act and is also a continuous supply of goods as defined u/s 2 (32) of the GST Act.

Order

Summary
 

Section 12 of CGST

Section 15 of CGST

Section 31 of CGST

Order dated 05/06/2018

Issue:Q.1. -“Whether educational courses offered by the Applicant which have been approved by National Skill Development Corporation (hereinafter referred to as “NSDC”) would be construed as in relation to National Skill Development Programme implemented by NSDC?”

Q.2. -“The Applicant offers certain educational courses for which qualification standards/framework i.e. QP/NOS has not been defined by NSDC and will be approved by NSDC as and when the relevant QP/NOS would be defined by NSDC. In the interim period, NSDC has given exceptional approval on such courses. Till the time QP/NOS are defined for such educational courses and are eventually approved by NSDC, whether such courses will be treated as in relation to National Skill Development Programme implemented by NSDC?”

Q.3.- “In certain situations, NSDC approved educational courses are subsequently, upgraded by the Applicant within pre-defined QP/ NOS framework, by way of adding more topics/ content /modules. However, such modified version of NSDC approved educational courses have not been approved by NSDC yet. Whether such modified version will be treated as in relation to National Skill Development Programme implemented by NSDC?”

Q.4.- “If the answer to Q.1, Q.2 and Q.3 are Yes, then whether the benefit of GST exemption as per Notification No. 12/2017-Central Tax (Rate), dated the 28th June 2017 would be available to the Applicant?”

Q.5. - “If answer to Q.4 is Yes, whether benefit of GST exemption as per Notification No. 12/2017-Central Tax (Rate), dated the 28th June 2017 would be still available if such educational courses are offered to corporates and business institutions?”

Q.6.- “Whether the NSDC approved educational courses which are actually imparted by the business partners of the Applicant, on behalf of the Applicant as sub-contractor of Applicant, at various centres located across the country, will be considered as offered by the Applicant?”

Q.7. - “If answer to Q.6 is Yes, whether benefit of GST exemption as per Notification No. 12/2017-Central Tax (Rate), dated the 28th June 2017 would be available to the Applicant?”

Crux:1. Educational courses offered by the Applicant which have been approved by National Skill Development Corporation ('NSDC') would not be construed as in relation to National Skill Development Programme implemented by NSDC, as National Skill Development Programme would cover only the actual schemes and programmes of skill development that are undertaken by the Government through its various ministries, departments, directorates, attached offices and organizations and cannot in any way be construed to be including each and every activity under the sun which enhances skills in one way or other.
2. Educational courses offered by the Applicant for which exceptional approval has been given by NSDC would not be construed as in relation to National Skill Development Programme implemented by NSDC.
3. Modified versions not approved by NSDC will not be treated as in relation to National Skill Development Programme implemented by NSDC.
4. In view of above answers Applicant are not eligible for exemption under Notification 12/2017-Central Tax.
5. In view of 4 above no exemption is available.
6. Not relevant and not being answered in view of the answers to question above.
7. No in view of the answers to question above.

Order

Summary

Order upheld by AAAR

Order dated 04/02/2019

Issue: Q.1. Whether educational courses offered by the Applicant, which have been approved by NSDC, would be construed as in relation to National Skill Development Programme implemented by NSDC?
Q.2. The Applicant offers certain educational courses for which qualification standards / framework i.e. QP/ NOS have not been defined by NSDC and will be approved by NSDC as and when the relevant QP/ NOS would be defined by NSDC. In the interim period, NSDC has given exceptional approval on such courses. Till the time QP/ NOS are defined for such educational courses and are eventually approved by NSDC, whether such courses will be treated as in relation to National Skill Development Programme implemented by NSDC?
Q.3. In certain situations, NSDC approved educational courses are subsequently upgraded by the Applicant within pre-defined QP/ NOS framework, by way of adding more topics/ contents /modules. However, such modified version of NSDC approved educational courses have not been approved by NSDC yet. Whether such modified version will be treated as in relation to National Skill Development Programme implemented by NSDC?
Q.4. If the answer to Q.1, Q.2 and Q.3 is Yes, then whether the benefit of GST exemption as per Notification No. 12/2017- Central Tax (Rate), dated the 28th June 2017 would be available to the Applicant?
Q.5. If answer to Q.4 is yes, whether benefit of GST exemption as per Notification No. 12/2017- Central Tax (Rate), dated the 28th June 2017 would be still available if such educational courses are offered to corporate and business institutions?
Q.6. Whether the NSDC approved educational courses which are actually imparted by the business partners of the Applicant, on behalf of the Applicant as sub-contractor of Applicant, at various centres located across the country, will be considered as offered by the Applicant?
Q.7. If answer to Q.6 is Yes, whether benefit of GST exemption as per Notification No. 12/2017- Central Tax (Rate), dated the 28th June 2017 would be available to the Applicant?

Crux: AAAR uphold the ruling pronounced by the Advance Ruling Authority vide their Order no GST-ARA37/2017-18/B-44 dtd. 05.06.2018.

Order

Summary
 

Notification No. 12/2017 Central Tax (Rate)

Order dated 04/06/2018

Issue: “Whether transportation charges received by the applicant are liable to GST, especially when the applicant is not a goods transport agency (GTA)”?

Crux: Transportation charges received by the applicant are liable to GST, especially when the applicant is not a goods transport agency (GTA) as agreement for Engineering Procurement and construction of Solar Power plant constitute composite supply in the nature of Works Contract under Section 2(119) of the GST Act.

Order

Summary
 

Section 2 of CGST

Order dated 23/05/2018

Issue:- Whether the supply of warehouse services used for packing & storage of tea, is exempted vide Serial No 54(e) of Notification No. 12/2017 – Central Tax (Rate) or otherwise?

Crux:- The goods being stored in the applicant’s godown are not agricultural produce as per definition given in Notification No. 12/2017 – Central Tax (Rate) and hence the same is not exempted vide Serial No 54(e) of Notification No. 12/2017 – Central Tax (Rate).

Order

Summary

Order upheld by AAAR

Order dated 10/12/2018

Issue: Whether the supply of warehouse services used for packing & storage of tea, is exempted vide Serial No 54(e) of Notification No. 12/2017 ' Central Tax (Rate) or otherwise'"

Crux: AAAR do not find any reason to interfere with the ruling. Thus, the goods are not exempt vide Serial No 54(e) of Notification No. 12/2017 ' Central Tax (Rate) as the said exemption granted is provided to the storage and warehousing services when provided in relation to the agricultural produce.

Order

Summary
 

Notification No. 12/2017 Central Tax (Rate)

Order dated 23/05/2018

Issue:- Whether the product “Modelling dough’ will be covered under Chapter 34 or Chapter 95 under the Customs Tariff Act, 1975?

Crux:- “Modelling dough’ will be covered under CTH 3407 under the Customs Tariff Act, 1975.

Order

Summary
 

Notification No. 01/2017 Central Tax (Rate)

Order dated 10/05/2018

Issue:- 1. Is GST applicable on the compensation for alternate accommodation to be paid to the tenant by the developer/owner?
2. Is GST applicable on the compensation for alternate accommodation / damages for delayed handover of possession of the new premises to be paid to the tenant by the developer/owner?

Crux:- The receipt of amounts towards alternate accommodation or delayed possession of premises would be receipt of amounts for doing an act and further for tolerating an act. Therefore would attract GST liability.

Order

Summary
 

Schedule III of CGST

Order dated 21/05/2018

Issue:-1. Whether IGST will be leviable on high sea sale effected by the Applicant to customers who are known to them at the time of placing order on the overseas party?

2. Whether input tax credit will have to be reversed, to the extent of inputs, input services and common input services used by the Applicant, in case the above transaction is not subjected to the levy of IGST by treating the same as an exempt supply for the purpose of Section 17 of the CGST Act ?

Crux:-1. The goods which are sold on high seas sale basis are non-taxable supply as no tax is leviable on them till the time of customs clearance in accordance with and compliance of Section 12 of the Customs Act, 1962 and Section 3 of the Customs Tariff act, 1975.

2. The goods sold on High Seas sale basis being non-taxable supply as per Section 2(78) of the CGST Act and being exempt supply as per Section 2(47) of the CGST Act, the input tax credit to the extent of inputs, input services and common input services would be required to be reversed by the applicant as per Section 17 of the CGST Act.

Order

Summary
 

Section 12 of Custom Act 1962

Section 3 of Custom Act 1975

 Section 17  of CGST

Order dated 19/05/2018

Issue:l. Haw to avail input lax credit for excise duty paid under Rule 3(5B) of the Cenvat Credit Rules?

2. Whether the appellant are eligible to avail input tax credit against unutilised cenvat credit such as Education cess, Secondary &Higher secondary Education cess & Krishi Kalyan cess lying in his books of Accounts?

Crux:1. Not answered as this question is withdrawn by the applicant at the time of proceedings of hearing of the case.

2. Appellant is not eligible to avail input tax credit against unutilised cenvat credit such as Education cess, Secondary &Higher secondary Education cess & Krishi Kalyan cess lying in his books of Accounts as it is not covered by definition of "eligible duties and taxes" under Section 140 of the CGST Act.

Order

Summary
 

Section 140 of CGST

Order dated 09/05/2018

Issue:- What is the correct HSN code and the applicable GST rate for MIDEL eN 1204 (rapeseed oil based dielectric transformer fluid) and MIDEL eN 1215 (soya oil based dielectric transformer fluid) in terms of Notification No. 1/2017-Central Tax (Rate) dated 28 June 2017?

Crux:- The products would fall in schedule entry 27 of Schedule II of the Notification No. 1/2017-Central /State Tax (Rate) under Tariff Heading 1518 and thereby taxable @ 6% each of Central Goods and Services Tax and Maharashtra Goods and Services Tax.

Order

Summary
 

Notification No. 01/2017 Central Tax (Rate)

Maharashtra State Power Generation company Limited v/s Shri B. V. Borhade, Joint Commissioner of State Tax, Shri Pankaj Kumar, Joint Commissioner of Central Tax.

Order dated 08/05/2018

Issues:-1. Whether GST is applicable on Liquidated damages in case of:
Type 1 i.e. Operation and Maintenance activities
Type 2 i.e. Construction of new power plants or renovation of old plants

2. Whether the GST on Liquidated damages is covered under Schedule II entry no. 5(2)(e) vide HSN code 9997- Other Services rate 18% is correct or any other entry is relevant?

3. Determination of Time of supply when Liquidated damages is determined and imposed upon the contractor after in depth study. Will it be the period in which delay is occurring or it is the time when decision to impose Liquidated damages is taken?

4. If some part of delay has occurred before GST roll-out and some part of delay has occurred after GST roll-out. whether GST will be applicable to the  Liquidated damages imposed for entire period of delay or to the period falling after GST roll-out? In case when GST is to be imposed  for period after date of GST rollout but due to maximum capping of LD, the amount of LD is calculated at given percentage instead of being period based, then how GST needs to be levied?

5. Whether the contractor/ vendor will be able to utilize the amount of LD imposed over him as Input tax credit subject to satisfying all other conditions?

Crux:-1. GST is applicable to LD in both type of cases as it is treated as consideration by Appellant which is supply under Schedule II entry no. 5(2)(e) of MGST Act.

2. GST on LD is covered under Schedule II entry no. 5(2)(e). As there is no specific entry in Notification no. 11/2017- Central/State Tax (Rate) and Notification no. 12/2017- Central/State Tax (Rate), therefore annexure about scheme of classification of services appended to Notification no. 11/2017- Central/State Tax (Rate) reveals that HSN code 9997 would cover impugned levy of LD.

3. The levy of LD is not when delay is occurring. The agreement expressly provides that liability of payment of these LD by the Contractor will be established once the delay in successful completion of trial operation is established on the part of contractor. This would define the time of supply.

4.Section 13(1) of GST Act provides that the liability to pay tax on services shall arise at the time of supply. If the contractor fails to achieve the Trial operation of the unit within specified time period which falls under GST regime then levy of liquidated damages would be attracted and this levy would attract the GST levy.In absence of precise facts, Section 14 of GST Act would have to be referred to by the applicant.

However in respect of liquidated damages collected/received under the service tax regime before coming into effect of GST, would be dealt with in accordance with the existant provisions under applicable laws and reference to same is outside the scope of present authority.

5.  The question is not answered as the proper person to raise this question would be contractor/ vendor and not applicant.

Order

Summary

Order upheld by AAAR

Order dated 11/09/2018

Issue:1. Whether GST is applicable on Liquidated Damages in case of
Type 1 i.e. Operation & Maintenance activities
Type 2 i.e. Construction of new power plants or renovation of old plants Or is applicable in both cases?

2. If GST is applicable, kindly clarify the following related aspects also
a) Whether the GST on Liquidated Damages is covered under Schedule II entry No 5(e) vide HSN code 9997-Other Services rate 18% is correct or any other entry is relevant?

b) Liquidated Damages is determined and imposed upon the contractor after in-depth study. In such case, what will be construed as the time of supply. Will it be the period in which delay is occurring or it is the time when decision to impose Liquidated Damages is taken?
c) If some part of delay has occurred before GST roll-out and some part of delay has occurred after GST roll-out, whether GST will be applicable to the Liquidated Damages imposed for entire period of delay or to the period falling after GST roll-out? In case when GST is to be imposed for period after date of GST rollout but due to maximum capping of LD, the amount of LD is calculated at given percentage instead of being period-based, then how GST needs to be levied.
d) Whether the contractor / vendor will be able to utilize the amount of LD imposed over him as Input Tax Credit subject to satisfying all other conditions?

Crux:1. -Regarding the agreement between Maharashtra State Power Generation Company Limited (Owner) and Bharat Heavy Electricals Limited (Contractor) for Erection & Commissioning of Main Plant Package at Chandrapur T.P.S. Expansion Project 2 x 500 MW, no reason to interfere with the finding of the AAR that GST would be applicable on the Liquidated Damages.

2 (a) – Upheld the finding of the AAR that the following schedule entry under the Notification no.11/2017 - Central / State Tax (Rate) [as amended from time to time] for taxable services would cover the impugned levy of liquidated damages -
 

2 (b) - Upheld the decision of AAR that as the Agreement expressly provides that liability of payment of these liquidated damages by the Contractor will be established once the delay in successful completion of trial operation is established on the part of the Contractor the said would define the time of supply.
2 (c) - The AAR correctly held that since no precise facts were before them, the section 14 of the GST Act would have to be referred to by the appellant.
2 (d) - AAR correctly held that input tax credit would be admissible subject to the conditions and restrictions as specified in the GST Act and the Rules made thereunder.

AAAR find no reason to interfere with the ruling given by AAR, Maharashtra

Order

Summary
 

Notification No. 11/2017 Central Tax (Rate)

Schedule II of CGST

Segoma imaging technologies india pvt. ltd v/s Shri B. V. Borhade, Joint Commissioner of State Tax, Shri Pankaj Kumar, Joint Commissioner of Central Tax.

Order dated 20/08/2018

Issues:- 1. Whether the supply of photography service is liable to SGST under the MGST Act, 2017 and CGST Act, 2017  or IGST Act, 2017?
2. Or is it a zero rated “export” supply within the meaning of Section 2(23) r/w Section 2(6) of the IGST Act, 2017?

Crux:-  1.The service shall be treated as intrastate supply and liable to tax under the provisions of MGST Act and CGST Act.
2. No, it is not a zero rated “export” supply within the meaning of Section 2(23) r/w Section 2(6) of the IGST Act, 2017?

Order

Summary

Order dt. 03/04/2019

Issue:-where the location of the supplier and the place of supply of services are in the same state or same Union Territory shall be treated as intra-State Supply

Crux: AAAR is of the opinion that since the questions asked by the appellant are not covered under our scope and jurisdiction, no ruling can be passed in the instant matter

Order

Summary

Order dated 05/05/2018

Issue:- 1. Whether the supply of food be called as canteen activity and the applicable rate of 5% be charged on bills?

2. Whether both the activities together i.e. supply and distribution of food be called as canteen activity and the applicable rate of 5% be charged on bills?

3. Whether contract of supply of food with Employees Co-op. Society can still be claimed as canteen activity and the applicable rate of 5% be charged on bills?

4. a) Can Merit Hospitality claim that since the food is supplied directly to SEZ area hence no GST is applicable ? or

b) Can Merit Hospitality claim that it is running a canteen in SEZ area hence no GST is applicable? or

c) Can Merit Hospitality claim that it is running a restaurant in SEZ area and hence applicable GST rate is 5% only?

Crux:- 1. The activity is related to supply of food and Beverages to another company. It is purely outdoor catering service  taxable under Serial No. 7 Heading 9963 (v) @ 18% under GST.

2. Distribution of food alongwith supply of food in no way impact the classification or taxability of the services and are taxable as outdoor catering service  taxable under Serial No. 7 Heading 9963 (v) @ 18%.

3. The applicant is providing  the outdoor catering services to Employees Cooperative Society instead of the company A Ltd hence taxable as outdoor catering service under Serial No. 7 Heading 9963 (v) @ 18%.

4. a) Due to lack of submissions whether B Ltd. is authorised unit in SEZ and regarding authorised operations of SEZ the said question cannot be answered.

b) The applicant cannot claim that they are running a canteen in SEZ. Rather their service would be in the nature of outdoor catering service 

c) The service supplied by the applicant cannot be claimed as restaurant service rather it is outdoor catering service hence taxable @ 18%.

Order

Summary

Order modified by AAAR

Order dated 01/11/2018

Issue:- a) Can Merit Hospitality claim that since the food is supplied directly to SEZ area hence no GST is applicable ' or
b) Can Merit Hospitality claim that it is running a canteen in SEZ area hence no GST is applicable' Or
c) Can Merit Hospitality claim that it is running a restaurant in SEZ area and hence applicable GST rate is 5% only'

Crux:- The services of supplying food by the appellant to the employees of the unit located in the Special Economic Zone is not covered under the zero rated supplies in terms of Section 16(1)(b) of the IGST Act, 2017 and the services of the appellant are also not in the nature of restaurant services as claimed by the appellant.

Order

Summary
 

Notification No. 11/2017 Central Tax (Rate)

AR of Tamil Nadu
Goodwill Industrial Canteen
(Summary)

AR of Kerala
Caltech Polymers Pvt. Ltd.
(Summary)

AR of Gujarat
Rashmi Hospitality Services Private Limited
(Summary)

M/S Ahmednagar District Goat Rearing and Processing Co-Op Federation Ltd. v/s Shri B. V. Borhade, Joint Commissioner of State Tax, Shri Pankaj Kumar, Joint Commissioner of Central Tax.

Order dated 21/04/2018

Issues:-1. Whether the whole (Sheep/Goat) animal carcass in its natural shape in frozen state in different weight and size packed in LDPE bags without mentioning the weight and one or two such LDPE bags further packed in HDPE bags being supplied to army by applicant against tender shall qualify as product put up in 'unit container'?

2. Whether above mentioned products are taxable under GST as per entry no. 4 of Schedule II of the Notification no. 01/2017 -Integrated Tax (Rate) dt. 28.06.2017 upto 14th November 2017and thereafter as per entry no. 1 of Schedule I of the Notification no. 43/2017 -Integrated Tax (Rate) dt. 14.11.2017 or fall under exemption list as per  entry no. 10 of the Notification no. 02/2017 -Integrated Tax (Rate) New Delhi dt. 28.06.2017 upto 14th November 2017 and thereafter as per entry no. 9 of the Notification No. 44/2017-Integrated Tax (Rate) dt. 14th November 2017?

Crux:-According to Notification No. 2/2017-IT (R) dated 28.06.2017, Carcass of frozen sheep/goat packed in LDPE/HDPE bags indicating weight of the product packed therein amounts to supply in unit container. The applicable rate of tax from 1.7.2017 to 13.7.2017 according to Schedule II of Notification No. 1/2017 IT (R) dated 28.06.2017 was 12% and thereafter according to Schedule I of Notification No. 44/2017-CT (R) dated 14.11.2017 is 5%.

Order

Summary

Order modified by AAAR

Order dated 11/09/2018

Issues:-i) Whether the packaging being used for dispatch to Army shall qualify as "Unit Container" under the GST law?
ii) Whether the product, i.e. sheep/Goat meat in frozen state and packed as mentioned in the facts stated shall be liable to be taxed under GST or would it be treated as exempted?

Crux:-AAAR modified the ruling pronounced by the Authority and held that the whole (Sheep/Goat) animal carcass in its natural shape in frozen state in different weight and size packed in LDPE bags without mentioning the weight and one or two such LDPE bags further packed in HDPE bags being supplied to Army by appellant against tender shall not qualify as product put up in "Unit Container".

Order

Summary
 

Notification No. 01/2017 Integrated Tax (Rate)

Notification No. 02/2017 Integrated Tax (Rate)

Notification No. 43/2017 Integrated Tax (Rate)

Notification No. 44/2017 Integrated Tax (Rate)

AR of Haryana
AOV Agro Food Pvt. Ltd.
(Summary)

AR of Haryana
Gitwako Farms (India) Pvt. Ltd.
(Summary)

Order dated 18/04/2018

Issue:- A.1 Whether Marine Consultancy Service (“MCS”) provided to foreign ship owners constitutes “composite supply” with the principal supply of consultancy service?

A.2 Whether the place of supply of MCS (as a composite supply) will be determined in terms of Section 13(2)(a) of the Integrated Goods and Services Tax, 2017(“IGST Act”), i.e. the ‘location of recipient of service’?

B.1 In the alternate, where services are provided to foreign ship owners distinctively as supply of consultancy service and support service with separate and demarcated fees for their consultancy service and for support service:

a. Whether consultancy service will qualify as business consultancy service in terms of the scheme of classification of services [Annexure to Notification 11/ 2017 — Central Tax (Rate), dated 28th June, 2017]

b. Whether the place of supply of such consultancy service will be the ‘location of recipient of service’ in terms of Section 13(2)(a) of the IGST Act?

c. Whether support service qualifies as “intermediary service” in terms of Section 2(13) of the IGST Act? And, if ruled that the support service qualifies as an intermediary service, the place of supply of support service as intermediary service will be the ‘location of supplier of service’ in terms of Section 13(8)(b) of the IGST Act?

Crux:- A.1 Marine Consultancy Service (“MCS”) provided to foreign ship owners does not constitutes “composite supply” as each service provided has equal importance and there cannot be any service which could be said to be a principal supply.

A.2 The question regarding place of supply is outside the of jurisdiction of Advance Authority.

B.1 a. The consultancy service provided by the applicant would not be qualified as business consultancy services rather classification of their service will depend on the exact nature of service/services they would provide in specific case.

B.1 b. The question regarding place of supply is outside the of jurisdiction of Advance Authority.

B.1 c. The support services being provided by the applicant would be ‘intermediary services’ and the applicant would be covered in the definition of an intermediary in terms of Section 2(13) of the IGST Act, 2017.

Order