Description

Related Information

Order Dated 28/08/2020

Issue: 1. What is rate of tax applicable to the composite supply of works contract as defined in clause (119) of Section 2 of Central Goods and Service Tax Act, 2017 (The Act), undertaken by the supplier (applicant) i.e., whether the GST rate 18% or 12% is to be charged by the supplier?

2. If the GST rate 18% (9% CGST+ 9% SGST) as prescribed in serial no. 3, against heading no. 9954 (construction services), specified in Notification No 11/2017-Central Tax (Rate) dated 28thJune 2017, is the rate applicable to the nature of works contract undertaken by the applicant, kindly clarify the following related aspects also:
The Notification no. 11/2017-Central Tax (Rate) dated 28th June 2017 has been amended by:
I. Notification No. 20/2017-Central Tax (Rate), dated 22nd August, 2017
II. Notification No. 24/2017-Central Tax (Rate), dated 21st September, 2017
Wherein the GST rate of 12% (6% CGST + 6% SGST) has been notified in respect of works contract as defined in clause (119) of Section 2 of the Act.
if so. whether the amendment through Notification No. 20/2017 and 24/2017 will be effective from the date of Notification no. 11/2017 and whether it would be in order for the applicant (supplier) to charge GST at the rate of 12% (6% CGST+6% SGST) or is the GST rate 18% (9% CGST 9% SGST) applicable to the nature of works contract undertaken by the applicant?

Crux: 1. Regarding the rate of tax applicable on the Composite Supply of Works Contract, authority is unable to answer the question on account of insufficient information provided by the applicant.

2. In respect of the effective date of the amendments to Notification no. 11/2017-Central Tax (Rate) vide Notification No. 20/2017-Central Tax (Rate) and Notification No. 24/2017-Central Tax (Rate) asked by the applicant shall be the date of publication of the Notifications in the Official Gazette.

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Order Dated 23/07/2020

Issue: Whether the input tax credit on the demo vehicle purchased can be availed as the same will be capitalized in books?

Crux: The applicant is not eligible tor Input Tax Credit on Demo vehicles purchased for furtherance of business, in view of barring provisions of clause (a) of sub-section (5) of Section 17 of GST Act 2017, as they are not covered by any of the exceptions given in clause (A), (B) or (C) of Sec. 17(5)(a).

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Order Dated 09/06/2020

Issue: 1. Whether we are eligible to take credit on input tax paid on purchase of water slides? water slides are made up of strong PVC.
2. Water Slides are installed on steel and civil structure. Credit of Tax paid on Input goods and services used in construction of this support structure will be available or not?
3. Input Tax will be available or not on Goods and services used for area development and preparation of land on which water slides are erected.
4. Whether applicant will be eligible to take credit of input goods and services used for construction of swimming pool / wave pool as water slides directly run into pools?

Crux: Regarding the eligibility of ITC in case of input tax paid on purchase of water slides, it was held that water slides shall fall within the meaning of the term apparatus, equipment and machinery and therefore, shall be eligible for claim of ITC.

Regarding the steel and civil structure on which the water slides are installed, we have to state that foundation and support structures which are used to fasten plant and / or machinery to the earth is classifiable as FORM GSTR3B˜Plant and / or Machinery FORM GSTR3B. In the instant case. slide are fastened to the steel and civil structure are affixed to the earth through these steel an civil structures. Therefore, these steel and civil structures shall form part of the Plant and Machinery. Accordingly. the credit of FORM GSTR3BœTax paid on Input goods and services used in construction of this support structure shall be available.

It has been stated that for wave pool, machines have been installed. The foundation for these machines are eligible to be part of the machines and the ITC shall be treated in a manner similar to that of the machines. However, the machine room, which is a civil structure, erected for protecting machine is neither foundation nor civil structure for machine, therefore ITC relatable to the construction of the room for housing the machine shall not be eligible.
 
Regarding the Input tax on goods and services used for area development and preparation of land on which water slides are placed. we have to state that area development and expenditure on preparation of land like site formation services are part of the cost of the land and thus are interminably bound with land. These expenses are liable to be capitalized under the head Land. Therefore, on account of the specific exclusion of Land from the meaning of FORM GSTR3B˜plant and machinery FORM GSTR3B. ITC related to Land Development, subject to its capitalization as per accounting principles shall not be available.

Regarding eligibility of ITC on goods and services used for construction of swimming pools / wave pool in which the water slides directly run into, we have to state that such swimming pools / wave pools are not support structure or foundation for a plant, but are independent items per se. Since they are not foundation or support structure on which slides are fasted for affixing them to earth and also on account they being civil structures. they are therefore excluded from the meaning of FORM GSTR3B˜plant and machinery FORM GSTR3B. Thus, the ITC related to the construction of the swimming pools and wave pools. subject to its capitalization shall not be available.

The provision of facilities like transformers. sewage treatment plant. electrical wiring and fixtures. surveillance systems. D.G. sets. Lifts. Air Handling Units etc. are sine qua non for a commercial mall and hence cannot he considered separate from the building or civil structure. The provision of these are either statutory for a building or defines the nature of the building as a commercial mall. Hence the ITC on the inward supplies of goods or services involved in the construction of immovable properly which is a civil structure or building is not available to the applicant and hence blocked.

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Order Dated 08/06/2020

Issue: 1. Whether the applicant is liable to discharge tax liability @ 18% on coal handling and distribution charges wherever supply of such services is intended to be made expressly to a customer or will the applicant be entitled to charge GST at the rate of 5% as applicable on supply of coal?

2. Will the applicant be entitled to utilize the input tax credit availed for discharging liability towards supply of coal and supply of coal handling and distribution charges?

Crux: 1. Coal handling and distribution charges will be taxable @ 18% and not 5% wherever supply of such services only is intended to be expressly made to a customer.
2. It was held that input credit availed as per the conditions specified in section 16 shall be allowed for discharging the liability towards supply of coal and supply of coal handling and distribution charges respectively.

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Order Dated 08/06/2020

Issue: whether Input credit on purchase of Lift would be available to Hotel as it has been used in the course or for the furtherance of business?

Crux: The input tax credit of tax paid on Lifts procured and installed in hotel building shall not be available to the applicant as the same is blocked in terms of Section 1 of the CGST Act 2017, become an integral part of the building.

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Order Dated 02/06/2020

Issue: Whether the supply towards provision of services in respect of activity of mounting/ fabrication of bodies on chassis provided by customer should be treated as supply of bus or provision of services in respect of activity of mounting/fabrication of bus body on the chassis wherein the said activity of mounting/fabrication is outsourced to the applicant by owner/provider of chassis in following two scenarios:-
1 The chassis is originally manufactured by one of the unit of the applicant registered separately as distinct person under GST Act and sold to provider of chassis receiving the chassis for fabrication of body.
2 The chassis is originally manufactured by some other OEM and sold to provider of chassis before receiving the chassis for fabrication of body.

Crux: It was held that, in no case the ownership of the chassis belongs to the applicant, hence in both the scenarios mentioned in the question will be taxable under SAC 998881 - Motor vehicle and trailer manufacturing services� and under entry no. 26(ii) as Manufacturing services on physical inputs (goods) owned by other it is taxable @ 18% (9% under CGST and 9% under SGST Act).

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Rectification order

Order Dated 09/06/2020

In said order the words and number under entry no. 26(ii)� read as nder entry no. 26(iv) Rest of the order/ruling will be same as in the original order.

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Order Dated 05/03/2020

Issue: 1.Whether the fork relating to "supply, installation and fixing of customized furniture in a building" is composite supply of goods or in the nature of works contract?
2.What is applicable rate of GST on the above Supply, if it is supply of goods or supply in the nature of works contract?

Crux: 1. The activities of supply, installation and fixing of furniture to be performed by the applicant cannot be classified under Heading 9954 - Construction services, as provided in serial no. of Notification no.11/2017-Central Tax (Rate) dated, 28.06.2017, as amended from time to time. Rather, the contract conforms to composite supply as provided in Section 2(30) of GST Act, 2017. The supply made by the applicant consists of two taxable supplies of goods and services which are naturally bundled and supplied in conjunction with each other, where the supply of goods i.e. furniture is the principal supply.

2 The goods shall merit classification under Chapter Head 9403 of GST Tariff and shall be liable to GST at the rate applicable at the time of supply.

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Order Dated 02/03/2020

Issue: 1. Whether the amount recovered by the applicant from other government departments for doing research work and study, which help them make policies or understand its impact, chargeable to GST?
2. Whether services provided by the applicant to other government department are covered under the entry no 8 of exemption Notification no.12/2017-Central Tax (Rate) dated 28th June 2017?

Crux: 1.The amount recovered by the applicant from other government departments for doing research work and study, which help them make policies or understand its impact, shall be exempt subject to satisfaction of conditions laid down under entry no. 3 of Notification no. 12/2017-CTR dated 28th June 2017.

2. It was held that as the applicant does not qualify to be Central Government, State Government or local authority hence services provided by the applicant to other government department are not covered under the entry no 8 of exemption Notification no.12/2017-Central Tax (Rate) dated 28th June 2017.

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Order Dated 10/02/2020

Issue: 1.Whether ITC of GST paid on goods purchased for the purpose of construction & maintenance of warehouse such as vitrified tiles, marble, granite, acp sheet, steel plates, tmt tor (saria), bricks, cement, paint and other construction material can be claimed in full?
2. Whether ITC of GST paid on work contract service received from registered & unregistered contractor for construction & maintenance contract of building can be claimed in full?
3. Whether ITC of GST paid on goods purchased & works contract service received during the FY 2017-18 for the purpose of construction & maintenance of warehouse can be claimed in full?

Crux:   1. It was held that, No ITC of GST paid on goods purchased for the purpose of construction & maintenance of warehouse such as vitrified tiles, marble, granite, acp sheet, steel plates, tmt tor (saria), bricks, cement, paint and other construction material is admissible under Section 17(5) of CGST Act, 2017.

2. It was held that, No ITC of GST paid on work contract service received from registered & unregistered Contractor for construction & maintenance contract of building is admissible under Section 17(5) of CGST Act, 2017.

3. It was held that, No ITC of GST paid on goods purchased & works contract service received during the FY 2017-18 for the purpose of construction & maintenance of warehouse is admissible under Section 17(5) of CGST Act, 2017.


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Order Dated 16/01/2020

Issue: 1. Whether the explanation to entry no. 234 of Schedule- I to Notification no. 1/2017 - Central Tax (Rate), as amended from time to time, shall apply to construction of new 33 / 220 kV Pooling Substation at Badwar, REWA along with associated 220 kV DCDS Transmission line (Route length 3.0 Kms) and associated feeder bay work on total Turnkey basis against Bid Identification No. RUMS/2016-17/372/014 (Lot-I) under World Bank Financing?

2. Whether in the facts and circumstances of the case, value of all the goods supplied under the contract, independent of the works contract being executed in the contract shall form part of the works contract and taxed as service?

Crux:  1. Goods listed in Entry No. 234 of Notification No. 1/2017 - Central Tax (Rate) are not part of the supply and therefore, the Explanation to Entry No. 234 of Notification No. 1/2017 - Central Tax (Rate) shall not apply to the supply of works contract service in contract of construction of new 33 / 220 kV Pooling Substation at Badwar, REWA along with associated 220 kV DCDS Transmission line (Route length 3.0 Kms) and associated feeder bay work on total Turnkey basis against Bid Identification No. RUMS/2016-17/372/014 (Lot-I) under World Bank Financing for Rewa Ultra Mega Solar Limited.

2 Supply of goods under a contract for building, construction, fabrication, completion, erection, installation, fitting out, improvement, modification, repair, maintenance, renovation, alteration or commissioning of any immovable property are included in the value of contract for supply of service only where the transfer of property in goods (whether as goods or in some other form) is involved in the execution of the contract. Goods supplied under a Turnkey Contract, where there are multiple independent contracts, of which some are not in the nature of Works Contract, shall not be included in the value of contract in the nature of a works contract merely on account of the fact that goods are being supplied under Turnkey Contract, part of which is in the nature of a Works Contract, unless such supply of all such goods is a part of and made in the execution of a works contract.

The supply of equipment and materials for Sub-stations, Feeder Bays and Transmission line under contract of construction of new 33 / 220 kV Pooling Substation at Badwar, REWA along with associated 220 kV DCDS Transmission line (Route length 3.0 Kms) and associated feeder bay work on total Turnkey basis against Bid Identification No. RUMS/2016-17/372/014 (Lot-I) under World Bank Financing for Rewa Ultra Mega Solar Limited shall not be included in the value of the Works Contract for Civil Work for Substation and Feeder Bay.

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Order Dated 06/01/2020

Issue:1.Whether it is covered in para 5 of Schedule III (Sale of Land) or classified under works contract.
2. If it is covered under works contract, how the valuation would be done.
3. Residual Rule i.e. Rule 30/31 provided under GST Valuation Rules can be considered or not.

Crux:   1 The activities performed/to be performed by the applicant cannot be classified under Para 5 of Schedule III. It amounts to supply of services under works contract and is liable to be taxed under GST Act.
2 Rule 31 applies in the instant case and the value of supply is equal to the amount received/receivable by the applicant which is equal to 40% of the amount on which the plots are sold.

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Order Dated 02/01/2020

Issue: whether the product “Preparation of a kind used in animal feeding – Bio Processed Meal” will fall under HS Code 23099090 and applicable rate of GST on said product shall be ‘Nil’ as per Notification 02/2017-CT (Rate) dated 28.06.2017?

Crux:1. The Product “Preparation of a kind used in Animal Feeding - Bio Processed Meal” is not entitled to classify under HS Code 23099090 and therefore not entitled for the benefit of Notification No. 02/2017-CT(Rate) dated 28.06.2017 and corresponding notification issued under MPGST Act.

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Rectification order

Order Dated 28/02/2020

The product “Preparation of a kind used in Animal Feeding - Bio Processed Meal” is entitled to classify under HS code - 23099090 and therefore entitled to clear the said goods for specific use of Animal Feeding without payment of GST under serial no. 102 of the Notification No.02/2017-CT(Rate) dated 28.06.17 and corresponding notification issued under MPGST Act.

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Order Dated 28/11/2019

Issue: The applicant has sought an advance ruling regarding Classification of Fried Fryums of different shapes, sizes and varieties which are ready to eat and What is the HSN Code and GST rate applicable on such goods manufactured.?

Crux: The product ‘Fried Fryums’ manufactured and supplied by the applicant is classifiable under Tariff Item 2106 90 99 of the First Schedule to the Customs Tariff Act, 1975.
Goods and Service Tax rate of (CGST 9% + GGST 9% or IGST 18%) is applicable to the product ‘Fried Fryums’ as enumerated under S.No. 23 of Schedule III of Notification No. 1/2017-Central Tax (Rate) dated 28.06.2017 since amended, issued under the CGST Act, 2017 and corresponding notification under MPGST Act subject to conditions laid down in that entry.

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Order Dated 08/05/2019

Issue: (a) What shall be GST rate on Torch with input socket to recharge from solar panel?
(b) What will happen, if torch is having solar panel input socket, but provided without solar charging panel?

Crux:  Nano Rechargeable LED Torch Light is classifiable under Chapter Heading 8513 presently attracting GST @18%.
It was also held that the product will not be entitled to concessional rate of GST @5% under Sr.No.234 of Schedule-I to Notification No.01/2017-CT(Rate) dtd.28.06.2017 as the same is not a ‘Solar Based Device’.

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Order Dated 25/06/2019

Issue: whether there is any tax liability on such additional amount (termed as Interest) charged on delayed payment?

Crux:  The stock broking service is the principal supply and all other ancillary supplies shall take colors from the principal supply itself and it shall be classified as principal supplies i.e. Stock Broking Services. Regarding the applicability of Notification No. 12/2017, it was held that the additional amount being charged cannot be termed as interest. Hence the exemption vide entry no 27 of Notification no 12 / 2017 cannot be applied on the same.

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Order Dated 25/09/2019

Issue: Whether the activities performed by the Association are covered under the definition of Charitable Activities as defined under clause 2(r) of Notification No.12/2017-CT (Rate) dated 28.06.2017?"

Crux:  Promotions of Research and Publishing of online research journal are not activities contemplated in the exemption entry since they do not fall under care or counselling; or spreading public awareness; or advancement of religion, spirituality or yoga; or advancement of educational programmes or skill development. In absence of facts of such seminar/symposium/convention, Advance ruling can't be passed on Organization of Seminars, Symposiums and Conventions of the nature organized by the Applicant.

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Order Dated 25/09/2019

Issue: (a) Whether work constitutes composite contract or is it separate contract for each work under taken?
(b) What is the effective rate of tax in the given facts?

Crux:  The tender document in question is a not consolidated contract and each supply under the said contract shall be chargeable to tax individually, depending upon the individual classification of such supplies and rate of tax applicable at the time of supply.

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Order Dated 25/09/2019

Issue:1. Whether charging GST @5% of transportation services by Goods Transport Agency (GTA) by road under RCM and 18% on coal beneficiation and loading charges is in compliance with the provisions of the GST Law?
2 If the answer to Q-1 is negative, then what should be the applicable GST rate on these services and who is liable to pay tax to the government?

Crux: 1.The services of coal beneficiation and transportation are two different supplies and they will attract the following rates:
a. Coal Beneficiation: GST @18% (CGST 9% + SGST 9%) under SAC9997
b. Transportation by a GTA by road @5% (CGST 2.5% + SGST 2.5%) under Reverse Charge Mechanism if supplier does not avail input tax credit. Or else GST @ 12% (CGST 6% +SGST 6). In the latter case the tax is to be paid by supplier i.e. transporter under SAC 9965.

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Order Dated 25/09/2019

Issue: whether to classify Utility Van under chapter heading 8703 or chapter heading 8704?"

Crux: Utility Vehicles, predominantly designed for transportation of goods conforming to the norms of Category N vehicles as per Automotive Industry Standards AIS 053, shall merit classification under Chapter 8704 of the GST Tariff and shall be chargeable to GST at the rate prevailing at the time of supply.

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Order Dated 25/09/2019

Issue:1.Applicability of serial no.15(b) (HSN/SAC Code 9964) of exemption Notification No.12/2017-CT(Rate), dated 28.6.2017 as amended, for transportation of their students and staff under contract carriage by Non-A/c buses?
2. If taxable, its rate of GST?

Crux: 1. Services provided by the applicant for transportation of students and staff of the contracee's Institute under contract carriage by non-air conditioned buses is exempt from GST as per clause (b) of SI.No.15 of Notification No.12/2017-CT(Rate), dated 28.6.2017. However the exemption will be valid only till the time the contract carriage fulfils the conditions laid down in the said notification.

2 .As the answer to Question No. 1 is in the affirmative, therefore, the Question No. 2 is not being replied.

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Order Dated 18/07/2019

Issue: 1. Whether royalty paid in respect of Mining Lease can be classified under “Licensing services for the right to use minerals including its exploration and evaluation falling under the heading 9973 attracting GST at the same rate of tax as applicable on supply of like goods involving transfer of title in goods”?
2. Determination of the liability to pay tax on contributions made to District Mineral Foundation (DMF) and National Mineral Exploration trust (NMET) as per MMDR Act, 1957.

Crux: 1. Royalty paid in respect of Mining Lease can be classified under Tariff Heading 99733.

2. The contributions made to DMF and NMET  are nothing but additions to the royalty payable for the original supply itself, and is therefore liable to be added to the value of the original supply and treated accordingly for the purposes of GST.

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Order Dated 18/07/2019

Issue: "Whether the services received by it from a provider of service located in a non taxable territory would attract the provision of sec 5(3) read along with Notification No 10/2017 IT(R). In other words, whether applicant is liable to pay tax under reverse charge mechanism on the transaction mentioned "?

Crux: The applicant shall be liable to pay IGST on Import of service under Reverse Charge Mechanism in terms of Notification No. 10/2017-lT(R).

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Notification No. 10/2017 Integrated Tax (Rate)

Order Dated 24/07/2019

Issue:1. Rate of GST on contract for construction of building and structure for colony at village Siveria at 2×660 MW Shree Singaji Thermal Power Project Stage -II Khandwa.
2. Rate of GST on construction contract of residential quarters at various power houses of MPPGCL.

Crux: The work contract awarded to Shreeji Infrastructure P.Ltd. for construction of 599 residential quarters at Shree Singaji Thennal Power Project Stage-II shall attract GST @18% (9% CGST +9% SGST) under SAC 9954.

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Notification No. 11/2017 Central Tax (Rate)

Order Dated 24/07/2019

Issue: a. Will the consideration received by the school from the participant school(s) for participation of their students and staff in the conference would be exempted under entry No. 66 or entry No. 1 or entry No. 80 or any other entry of the Notification No.12/2017 — Central Tax (Rate) or will be chargeable to GST under CGST Act, 2017 & MP’ GST Act, 2017 or IGST Act, 2017?
b. If not exempted then what would be the appropriate category of the service and the appropriate Tax Rate?
c. What would be the Place of Supply for such services?
d. Whether exemption provided to service providers of catering, security, cleaning, house-keeping, transportation etc. to an educational institution upto higher secondary be available to the Service Providers of the Applicant for services related to such conference.
e. Whether ITC would be eligible of all the input services availed for the purpose of the above conference?

Crux: a. The consideration received by the school from the participant school(s) for participation of their students and staff in the impugned conference would not be exempted under entry No. 66 or entry No. 1 or entry No. 80 or any other entry of the Notification No. 12/2017 — Central Tax (Rate) or will be chargeable to GST under CGST Act, 2017 & MP GST Act, 2017 or IGST Act, 2017 and concurrent notifications issued by the State Tax authorities.
b. Various services provided for organizing the impugned conference / gathering of students and staff of other Schools, shall be liable to tax at the rate applicable to the respective services.
c. To decide the place of supply is beyond the jurisdiction of AAR.
d. Exemption provided to service providers of catering, security, cleaning, house-keeping, transportation etc. to an educational institution up to higher secondary shall not be available for services provided for the impugned conference.
e. The provision of the act is very clear that no ITC shall be available on food and catering, as rate is 5% without ITC. ITC in respect of other services shall be available as per provisions of the GST Act and the Rules.

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Notification No. 12/2017 Central Tax (Rate)

Order Dated 24/07/2019

Issue: Classification of  “Agriculture Knapsack Sprayer” and applicable tax rate?

Crux: The product Agriculture Mechanical Sprayer will merit classification under Chapter Head 8424 of the GST Tariff and with effect from 25.01.2018, the said product would attract GST @12% in terms of Sr.No. 195B of Schedule-II to Notification No. 01/2017-CT(R) as amended vide Notification No.06/2018-CT(R) dtd. 25.012.018 and concurrent notifications issued by the State Tax authorities.

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Notification No. 01/2017 Central Tax (Rate)

Order Dated 03/05/2019

Issue: Whether building of body after utilizing and consuming owned materials and providing labour and further amounting the same on chassis of the principal would amount to supply of Services

Crux: Mounting of Bus/ Truck /Ambulance body on the chassis to be supplied by the Principal on delivery challan or any other owner of the chassis on which Bus/ Truck /Ambulance body will be fabricated by collecting job work charges including inputs required for such fabrication work and in no case the ownership of the chassis will be transferred by Applicant to the job worker will be taxable under SAC 998881 — “Motor vehicle and trailer manufacturing services” and under entry no. 26(ii) as “Manufacturing services on physical inputs (goods) owned by other” it is taxable @18%(9% under CGST and 9% under SGST Act).

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Circular no. 52/26/2018-GST

Order Dated 02/05/2019

Issue: Whether the applicant/importer is again required to pay IGST on the component of ocean freight under RCM mechanism on deemed amount which will amount to double taxation of IGST on the deemed component of ocean freight of the imported goods?

Crux:The Applicant shall be liable to pay IGST on ocean freight paid on imported goods under Reverse Charge Mechanism in terms of Notification No.10/2017-IT(R) and Notification No.8/2017-IT(R) irrespective of the ocean freight component having been a part of the CIF value of imported goods.

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Notification No.10/2017-IT(R) 

Notification No.8/2017-IT(R)

Order Dated 10/04/2019

Issue: Sr. No. 72 of Not. No. 12/2017 Central Tax(Rate), dated 28-06-17 issued by the Central Government under CGST Act, 2017 and exemption provided under Sr. No. 72 of Not. No. FA-3-42/2017-1-V(53) dated 30-06-2017 issued by the Madhya Pradesh Government under M.P. Goods & Services Act, 2017 is applicable for the applicant?

Crux: The Applicant shall not be entitled to avail benefit of exemption as envisaged under SI.No.72 of Notification No.12/2017-Central Tax (Rate) dt. 28.06.2017 and SI.No.72 of Notification No.FA-3-42/2017/1/V(53) dtd. 30.06.2017 in respect of the services of training provided to Uttar Pradesh Skill Development Corporation.
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Notification No. 12/2017 Central Tax (Rate)

Order Dated 10/04/2019

Issue: The applicant as whether the activity of building and mounting of the body by the applicant on the chassis provided by the Principle will result in supply of goods under HSN 8707 or supply of services under HSN 9988 taxable @ 18% irrespective of end use by the principle who shall effect the sale of Bus.

Crux: In respect of the question raised by the applicant we hold that on fabrication of bus body on the chassis to be supplied by the OEMs (Principal) on delivery challan or any other owner of the chassis on which bus body will be fabricated by collecting job work charges including inputs required for such fabrication work and in no case the ownership of the chassis will be transferred by Principal to the applicant will be taxable under SAC 998881 – “Motor vehicle and trailer manufacturing services” and under entry no. 26(ii) as “Manufacturing services on physical inputs (goods) owned by other” it is taxable @18%(9% under CGST and 9% under SGST Act).

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Circular no. 52/26/2018-GST

Order Dated 18/02/2019

Issue: Whether the GST paid on the cars provided to different customers on lease rent will be available to it as INPUT TAX CREDIT(ITC) in terms of Section 17(5) of Central Goods and Service Tax Act, 2017.

Crux: 1. The Applicant is entitled to avail ITC on cars (passenger vehicles) which are further supplied to customers on lease rent, subject to condition applicable in such supply of services as per notification number 11/2017-Central Tax(Rate) Dated 28.06.17 as amended from time to time and corresponding notifications issued under MPGST Act.
2. The provision of rule 42 shall also be applicable if required so.
3. At the termination of lease agreement/contract, if the vehicle is not further leased to same or other customer, the applicant shall be liable to reverse the ITC so availed as per law.
4. Such vehicles should abide by the norms and regulations of The Motor Vehicle Act. in accordance to be registered for commercial use with the Transport authority and not put to own use by the Applicant.

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Notification No. 11/2017 Central Tax (Rate)

Section 17 of CGST

Order Dated 21/01/2019

Issue: 1. Whether exemption provided under Sr.No.74 of Notification No.12/2017 - Central Tax (Rate) dated 28.06.2017 is applicable to the applicant.?
2. Whether applicant qualifies to be a "Clinical Establishment" under clause 2 (s) of the said Notification.?

Crux: The Applicant is not entitled for the benefit of serial no. 74 and para 2 (s) of Notification No.12/2017-Central Tax (Rate) dated 28.06.2017 and corresponding notification issued under MPGST Act.

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Notification No. 12/2017 Central Tax (Rate)

Order Dated 14/12/2018

Issue: Determining the classification of P.P. Bags which are made from strips having width of less than 5mm. whether the PP bags would classify under chapter heading 63 or chapter 39 of the GST Tariff and what shall be the rate of GST on the same?”

Crux:  The goods in question shall be classifiable under Chapter 39 of the GST tariff as articles of Plastic and would attract appropriate rate prevailing at the date and time of supply.

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Order Dated 27/08/2018

Issue: Whether clause (vi)(a) of Sr. No. 3 of table of Notification No. 11/2017-Central Tax(Rate) dated the 28th June, 2017 is applicable on the works contract services received by it and determination of liability to pay Tax?

Crux: The contract entered by the applicant falls under entry no. (ii) of S. No. 3 of the table of notification no. 11/2017 - Central Tax (Rate), Dated - 28th June 2017 with the applicable rate of tax is 18% (9% under Central tax and 9% State tax).

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Notification No. 11/2017 Central Tax (Rate)

Order Dated 23/10/2018

Issue: Whether the goods manufactured (i.e. various types of mouth freshners) by the Applicant and sold prepared by mixing various inputs/raw materials like kharak, sugar, khopra, sounf, fennel, dates, mishri, saccharin, menthol, papaya fruit, or natural flavouring substances, are liable to be classified under Chapter 21 i.e. ‘Miscellaneous Edible Preparations’ – 2106 (food preparations not elsewhere specified or included) and taxed at 18% GST as currently followed or under Chapter 20 i.e. ‘Preparations of Vegetable, fruit, nuts or other parts of plants’ and taxable at 12% GST?

Crux: The product Mouth freshener as described in the Application will merit classification under Chapter Heading 2106 of the GST Tariff as ‘Food preparations not elsewhere specified or included’ and would be chargeable to GST at applicable rate under the said tariff entry, presently read with Notification No.01/2017-Central Tax (Rate) dtd.28.06.2017 and the corresponding notification under MPGST Act 2017 (Sr. No.23 to Schedule III).

Order

Summary

Notification No. 01/2017 Central Tax (Rate)

Order Dated 18/10/2018

Issue:
1. Whether Madhya Pradesh Power Generation Company Limited is a 'Government Entity'?;
2. If yes, whether the work contract service of construction of 599 residential quarters allotted to the Applicant company under the tender, will be charged under the GST rate of 12% (6+6) [as per entry 3(vi)(c)] or 18% (9+9) [under entry 3(ii)];

Crux:
1. M/s.Madhya Pradesh Power Generation Company Limited is a Government Entity as defined under Notification No. 31/2017-Central tax (Rate) for the purpose of GST law.
2. The works contract service of construction of 599 residential quarters allotted to the applicant by MPPGCL will merit classification under SAC 9954 and would attract GST @ 18% (9% CGST + 9% SGST) [under entry 3(ii)].

Order

Summary
 

Notification No. 11/2017 Central Tax (Rate)

Order Dated 18/09/2018

Issue: Whether the product having brand name “Militry Malai Mithai”, manufactured and supplied by the applicant containing the ingredients Sugar, Vegetable Fat, Skimmed Milk Powder, Whey Powder, Emulsifier and other permitted Flavours, which is identical to the commonly known Indian sweet “Rabdi”, should be classified under the Tariff Heading 2106 as Sweet Meats or under Tariff Heading 0404 as other dairy product consisting of natural milk constituents or under the Tariff Heading 1704 as a Sugar confectionery?

Crux: The product ‘Militry Malai Mithai’ will merit classification under Chapter Heading 2106 90 of the GST Tariff as ‘Sweetmeat’ and would be chargeable to GST at applicable rate under the said tariff entry, presently read with Notification No.01/2017-Central Tax (Rate) dtd.28.06.2017 (Sr. No.101 to Schedule I) and corresponding notification under MPGST Act,2017.

Order

Summary
 

Notification No. 01/2017 Central Tax (Rate)

Notification No. 11/2017 Central Tax (Rate)

AR of Madhaya Pardesh
M/s Madhya Pradesh Paschim Kshetra Vidyut Vitaran Company Limited
Summary

Order Dated 27/08/2018

Issues:-1. Whether GST @5% can be charged on food, soft drinks, and snacks sold in the Snack Bar & Food Court in terms of Notification no.46/2017?

2. Whether ITC of GST paid on Movie Distributor revenue share bill, Projector Rental Bill, Advertising Bill, Security Agency Bill, and House Keeping Bill can be claimed in full?

3. Whether ITC on GST paid on goods purchased for the purpose of maintenance such as Vitrified Tiles, Marble, Granite ACP Sheets, Steel Plates, TMT TOR, Bricks, Cement, Paint, Chemicals, Sanitary items like wash basin, urinal pots, and toilet accessories can be claimed in full?

4. Whether ITC of GST paid on Works Contract service received from registered & unregistered Contractor for maintenance contract of building can be claimed in full?

Crux:- 1. The items supplied in Snack Bar and Food Court shall be chargeable to GST in terms of Notification No.11/2017-Central Tax (Rate) as amended by Notification No.46/2017-Central Tax (Rate) at prevailing rate of 5%(2.5% SGCT and 2.5% CGST), subject to conditions laid down at Serial Number 7 of the parent Notification classifiable under SAC 9963.

2. The Applicant shall be entitled to ITC of tax paid on Movie Distributor Revenue Sharing Bill, Projector Rental Bill and Advertising Bill in full; further in respect of Security Agency Bill and Housekeeping Bill, the ITC shall be restricted to the apportioned part which is utilised in providing taxable output services. Any ITC attributable to exempted output services shall be subject to reversal in terms of Section 17(1) of the GST Act 2017.

3. The ITC of GST paid on goods purchased for the purpose of maintenance of Mall such as Vitrified Tiles, Marble, Granite, ACP Sheets, Steel Plates, TMT TOR (Saria), Bricks, Cement, Paint, Chemicals, Sanitary Items like wash basin, urinal pots and toilet accessories shall not be admissible to the Applicant in terms of clause (c) of Section 17(5) of the GST Act 2017.

4. The ITC of GST paid on Works Contract Service received by the Applicant for maintenance contract of building shall not be available to them in terms of clause (d) of Section 17(5) of the GST Act 2017.

Order

Summary
 

Notification No. 11/2017 Central Tax (Rate)

Section 17 of CGST

Notification No. 11/2017 Central Tax (Rate)

AR of Madhaya Pardesh
M/s Madhya Pradesh Poorv Kshetra Vidyut Vitaran Company Limited
Summary

Order Dated 10/08/2018

Issues:- 1. Whether the course – Executive Post Graduate Programme in Management (EPGP), after enactment of Indian Institute of Management Act 2017 notified effective from 31st January 2018, is exempted from Goods and Service Tax?

2. In case of exemption to EPGP, will total amount of fees collected towards EPGP for the academic session 2018-19 is exempted, whether collected before or after enactment of IIM Act 2017 or only amount collected after enactment of IIM Act 2017?

Crux:- 1. the Executive Post Graduate Programme will not be eligible for exemption from GST as the same has been categorically excluded from exemption under Entry No.67 to the Notification No.12/2017-Central Tax (Rate).

2. The Executive Post Graduate Programme being conducted by the Applicant shall be chargeable to GST, irrespective of enactment of IIM Act 2017.

Order

Summary
 

Notification No. 12/2017 Central Tax (Rate)

AR of Karnataka
M/s Emerge Vocational Skills Private Limited Summary

Order Dated 09/08/2018

Issue: Whether exemption under Sr. No. 23 of Notification No. 12/2017-Central Tax(Rate) will apply to services provided by the Applicant, i.e. Service by the way of access to a road or a bridge on payment of access to a road or a bridge on payment of toll charges on subcontract basis?"

Crux: There is no restriction regarding the supplier or the recipient of the supply in case of providing access to a Road or Bridge on payment of toll charge. Therefore, even though the supply of the service to the user of the Toll Road is by the sub-contractor, GST is not payable on the amount of Toll Charges collected. It is exempted by Sr. No. 23 of Notification No. 12/2017-Central Tax(Rate).
The above ruling is limited to the question stated in the Application, which relates to the liability of GST on the “Toll Charges” collected. It has no bearing on the consideration received by the applicant from of Highway Infrastructure (P) Limited for the supplies made by the applicant to Highway Infrastructure (P) Limited.
The Toll Charges collected by the applicant are not “Toll Charges” per se in the hands of the applicant, but held in fiduciary capacity by the applicant, for onward remittance to Highway Infrastructure (P) Limited. The Ruling does not in any way relate to the Toll Charges retained by the sub-contractor, in terms of its agreement with Highway Infrastructure (P) Limited.

Order

Summary
 

Notification No. 12/2017 Central Tax (Rate)

Order Dated 25/07/2018

Issues:- Applicability of the notification number F-A-3-08-2018-1-V (43), Dated 24- 4-2018 regarding E- way bill issued under MPGST Act/Rules on “unmanufactured tobacco” under CTH 2401?

Crux:- The notification number F-A-3-08-2018-1-V (43), DATED 24-4-2018 issued under MPGST Act/Rules 2017, is not applicable on “unmanufactured tobacco” described under Chapter HSN 2401 i.e. to say generation of e-way bill for intra-state movement of “unmanufactured tobacco” described under Chapter HSN 2401 is not required as per the notification.

Order

Summary
 

Order Dated 30/06/2018

Issues:- Classification of supply of building bodies as supply of goods or supply of services and rate of tax applicable on it?

Crux:- The activity of Body Building undertaken by the Applicant, carried out on the chasis supplied by the principal in the capacity of a job worker, would amount to ‘Composite Supply’ as define under CGST Act 2017/MPGST Act 2017.
The rate of tax on such Composite Supply would be determined by the predominant component involved depending upon the character of the body being built on the chasis, which would eventually be classifiable under Chapter 87 of the Tariff. On the other hand, if the predominant element happens to be the Service part, then the Principal supply would be classified under Heading no. 9988.

Order

Summary
 

Notification No. 11/2017 Central Tax (Rate)

Circular No. 34/8/2018-GST

AR of Hryana
M/s Paras Motor Industries(Summary)

AR of Goa
Automobile Corporation of Goa Limited
(Summary)

Order Dated 22/06/2018

Issues:- 1. Whether PDMC provided by Applicant to recipient under the Contract for AMRUT; and PMC under the Contract for PMAY would qualify as an activity in relation to function entrusted to Panchayat or Municipality under Article 243G or Article 243W respectively, of the Constitution of India?

2. If answer to first is affirmative would such services provided by the Applicant qualify as “Pure services (excluding works contract service or other composite supplies involving supply of any goods)” as provided in serial number 3 of Notification No. 12/2017- Central Tax (Rate) dated 28 June, 2017 as amended by Notification No. 2/2018- Central Tax (Rate) dated 25 January, 2018 issued under CGST Act and corresponding notifications issued under MPGST Act, where the Project cost includes the cost of service rendered along with reimbursement of cost of procurement of goods for rendering such service, and, thus, be eligible for exemption from levy of CGST and MPGST, respectively?

Crux:- 1. The Project Development and Management Consultancy services (‘PDMC’) provided by Applicant to recipient under the Contract for AMRUT; and the Project Management Consultancy services (‘PMC’) under the Contract for PMAY would qualify as an activity in relation to function entrusted to Panchayat or Municipality under Article 243G or Article 243W respectively, of the Constitution of India.

2. The services provided by the Applicant would qualify as “Pure services (excluding works contract service or other composite supplies involving supply of any goods)” as provided in s. no. 3 of Notification No. 12/2017- Central Tax (Rate) dated 28 June, 2017 as amended by Notification No. 2/2018- Central Tax (Rate) dated 25 January, 2018 issued under Central Goods and Services Tax Act, 2017 (‘CGST’) and corresponding notifications issued under Madhya Pradesh Goods and Services Tax Act, 2017 (MPGST Act) in respect of the cost of service rendered along with reimbursement of cost of procurement of goods for rendering such service, and, thus, be eligible for exemption from levy of CGST and MPGST, respectively. However, the disposal of tangible goods at the end of contract shall be subject to GST depending upon the circumstances and manner of disposal of such tangible goods.

Order

Summary
 

Notification No. 12/2017 Central Tax (Rate)

AR of Andhra Pardesh
M/s Amaravathi Metro Rail Corporation Limited
Summary

Order Dated 22/06/2018

Issues:- (i) What is HSN in which the service of construction of new 33/220 kV Pooling Substation at Badwar, REWA along with associated 220 kV DCDS Transmission Line and associated feeder bay work on total Turnkey basis against Bid Identification No. RUMS/2016-17/372/014 (Lot-I) under World Bank Financing shall fall?

(ii) What is HSN in which the service of construction of new 33/220 kV Pooling Substation at Barsita Desh, REWA along with associated 220 kV DCDS Transmission Line and associated feeder bay work on total Turnkey basis against Bid Identification No. RUMS/2016-17/372/014 (Lot – II) under World Bank Financing shall fall?

(iii) What is HSN in which the service of construction of new 33/220 kV Pooling Substation at Ramnagar Pahad, REWA along with associated 220 kV DCDS Transmission Line and associated feeder bay work on total Turnkey basis against Bid Identification No. RUMS/2016-17/372/014 (Lot – III) under World Bank Financing shall fall?

(iv) What shall be the applicable rate of CGST and SGST on the supply being made under the contract?

Crux:- The scope of work in all the three agreements are identical, accordingly, all the three agreements shall have the same classification.

The HSN Code for the supply of composite service in the nature of Works Contract under the all the three agreements entered into with RUMS, shall be 9954 / 995423.

The rate of CGST on the supply being made under the contract shall be 9% according to Notification No. 11/2017 – Central Tax (Rates)

Order

Summary
 

Notification No. 11/2017 Central Tax (Rate)

AR of Rajasthan
RFE Solar Private Limited
(Summary)

AR of Maharashtra
Giriraj Renewables private Limited
(Summary)

AR of Maharashtra
Fermi Solar Farms private Limited
(Summary)

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

AR of Karnataka
M/s Giriraj Renewables Private Ltd.
(Summary)

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

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

AR of Andhra Pradesh
Dinesh Kumar Agrawal
(Summary)