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Related Information

Order dated 21/01/2021

Issue:- 1. Whether the activities of supply installation, operation and maintenance of Greenfield Public Street Lighting System (GPSLS) carried out by the applicant is classifiable as a supply of works contract services?
2. If the answer to question 1 is in affirmative, whether GST is liable to be paid under entry no.3(vi) of Notification no.11/2017-Central Tax (Rate) dated 28.06.2017 (as amended) on the supply and installation activities along with operation and maintenance activities to be undertaken by the applicant?
3. Whether the capital subsidy received/ receivable by the applicant for the subject transaction be liable to be included in the transaction value for the purpose of calculation of GST payable in terms of Section 15 of the CGST Act, 2017?

Crux:- 1.No, the activities of supply installation, operation and maintenance of greenfield public street lighting system (GPSLS) carried out by the applicant is not classifiable as a supply of Works Contract Services.
2. Since, answer to the first question is in negative, there is no need to answer the second question.
3. Capital Subsidy received/receivable by the applicant for the subject transaction be liable to be included in the transaction value for the purpose of calculation of GST.

Order

Summary

Order dated 19/11/2020

Issue:- Whether the applicant is required to be registered under Odisha Goods and Services Act, 2017 and Central Goods and Services Act, 2017 for the consultancy services rendered to M/s Odisha Power Transmission Corporation Limited

Crux:- Supply of service to OPTCL is not import of service in terms section 2 (11) of the IGST Act . Therefore the recipient is not liable to pay GST on reverse charge basis in terms of Notification no. 10/2017  Integrated Tax (Rate) dated 28.06.2017. The applicant, being the supplier of service in India, is liable to pay tax and therefore, required to take GST registration under Odisha Goods and Services Act, 2017 and Central Goods and Services Act, 2017 for the consultancy services provided to Odisha Power Transmission Corporation Limited .

Order

Summary

Order dated 19/11/2020

Issue:- 1. Whether the nature of supply made by applicant to IIT, Bhubaneswar is a work contract services under CGST Act, relying on clause 119 to section 2 read with item no. 6(a) to the schedule - II of the said Act. For that matter, the applicable rate of tax would be governed by serial no.3 (classification code 9954) of the Notification no.11/2017-Central Tax (Rate) dated the 28th June, 2017 ?

2. Whether IIT, Bhubaneswar is a Governmental Authority or a Government Entity as defined at clause no (ix) and (x) in the explanation at serial no. 4 to Notification no.11/2017 Central Tax (rate) dated 28.06.2017 under CGST Act?

3. If yes, whether the works contract service of construction of IIT Bhubaneswar Campus allotted to the applicant company, covered under serial no.3(vi)(b) (classification code 9954) of the Notification no.11/2017-Central Tax (Rate) dated the 28th June, 2017. For that matter the applicable rate of tax is 12% (including State GST rate) ?

4. Alternatively, if the works contract service could not be fully/ partially covered under entry 3(vi)(b), in the facts and circumstances of the applicant company, then whether it would be covered under 3(vi)(a) of the said notification as the construction work is predominantly for use other than for commerce, industry or any other business of profession?

5. Alternatively, whether the construction services related to sewerage project falls under clause (iii) of serial no 3 ( classification code 9954) of the Notification no. 11/2017-Central Tax(Rate) dated the 28th June, 2017 ?

6. Otherwise if the works contract service is not covered under clause (vi) or clause (iii) of entry 3 of the aforesaid notification, in the facts and circumstances of the Applicant company, then what will be applicable clause under entry no. 3 and what would be the rate of GST?

Crux:-  1. No, the nature of supply made by applicant to IIT, Bhubaneswar is not a work contract services as defined under section 2 (119) CGST Act 2017.

2.Yes, IIT, Bhubaneswar is a Government Entity

3. No, the works contract service of construction of IIT Bhubaneswar Campus allotted to the applicant company, are not covered under serial no.3(vi)(b) (classification code 9954) of the Notification no.11/2017-Central Tax (Rate) dated the 28th June, 2017.

4.It was held that the works entrusted to the applicant by IIT, Bhubaneswar cannot be termed as composite supply and thus entire work under the said contract shall not be entitled to concessional rate in terms of Notification No. 11/2017-C.T. (R), dated 28-6-2017. However, it was also held that the supply of goods and/or services or both which squarely fall within the ambit of scope of work entrusted to IIT, Bhubaneswar by Government of India shall be entitled for concessional rate under serial no.3(vi) to Notification no.11/2017-C.T. (R). Accordingly, each and every supply under the subject contract shall be treated separately for determining the rate of tax under the CGST Act, 2017 read with the provisions of GST Tariff and respective exemption notifications.

5. Yes, the construction services related to sewerage project falls under clause (iii) of serial no 3 ( classification code 9954) of the Notification no. 11/2017-Central Tax(Rate) dated the 28th June, 2017.

6. No need to be answered in view of the 5th above.

Order

Summary

Notification No. 45/2017 Central Tax (Rate)

Notification No. 47/2017 Integrated Tax (Rate)

Order dated 13/02/2019

Issue:- a) “Whether the Notification No-51 /1996-Customs, Dt: 23.07.1996 read with Notification No-43/2017-Customs, Dt: 30.06.2017 and Minutes of the 14th. GST Council Decision Dt: 18th. /19th. May,2017 is applicable for specified Imported Equipments delivered to the Eligible Institutions and the Applicant is not liable to pay the IGST charged on such imported Equipments by the OEM suppliers of imported equipment,” and,

b) “Whether the decision of the GST Council granting the exemption is binding on the Department in the absence of non-issuance of corresponding Notification by the Central/State Government to give effect to such decision of the Council,” and

c) “Whether the concessional rate of GST/IGST at the 5% vide Notification No.45-CGST(Rate), Dt: 14.11.2017 and Notification No.47-IGST(Rate), Dt:14.11.2017 are applicable only for supply of specified Indigenous Equipments to the eligible Institutions fulfilling conditions as specified under Column-(4) of the said notification with effect from 15.11.2017.”

Crux:- 1. Notification No-51/1996-Customs, dated 23.07.1996 read with Notification No.43/2017-Customs dated 30.06.2017 and Minutes of the 14th GST Council Decision dated 18th /19th May, 2017 is applicable to the Applicant for import of specified Equipments as listed under column (3) of the aforesaid notifications and the said notifications are not applicable to the OEM suppliers of imported equipment.

2. The scope of issuing a ruling u/s 98 of the OGST/CGST Act is limited to the extent prescribed in sub-section (2) of Section 97 of the OGST/CGST Act. A ruling on whether the decision of the GST Council granting the exemption is binding on the Department in the absence of non-issuance of corresponding Notification by the Central/State Government is not within the competence and mandate of the Authority of Advance Ruling constituted u/s 96 of the OGST Act.

3. Concessional rate of GST/IGST at 5% vide Notification No.45-CGST (Rate), Dt: 14.11.2017 and Notification No. 47-IGST (Rate) Dt. 14.11.2017 is applicable to (a) Scientific and technical instruments, apparatus, equipment (including computers); (b) accessories, parts, consumables and live animals (for experimental purposes); (c) Computer software, Compact Disc Read Only Memory (CDROM),recorded magnetic tapes, microfilms, microfiches; (d) proto-types, the C.I.F. value of which does not exceed rupees fifty thousand in a financial year whether imported or indigenous.

Order

Summary

Order modify by AAAR

Order dated 13/06/2019

Issue: (i) Whether the Notification No - 51/ 1996-Customs, Dt: 23.07.1996 read with Notification No-43.2017-Customs, Dt: 30.06.2017 and Minutes of the 14th GST Council Decision Dated 18th/19th May, 2017 is applicable for specified imported equipments delivered to the eligible institutions and the appellant is not liable to pay the IGST charged on such imported equipments by the OEM suppliers of imported equipment, and,
(ii) Whether the decision of the GST Council granting the exemption is binding on the department in the absence of non-issuance of corresponding Notification by the Central/ State Government to give effect to such decision of the Council, and
(iii) Whether the concessional rate of GST/IGST at the rate of 5% vide Notification no-45-CGST (Rate), Dt:14.11.2017 and Notification no-47-1GST (Rate), Dt: 14.11.2017 are applicable only for supply of specified Indigenous Equipments to the eligible Institutions fulfilling conditions as specified under Column-(4) of the said notification with effect from 15.11.2017.

Crux: AAAR upheld the ruling of the Odisha Authority for Advance Ruling Thus, the appeal filed by the appellant fails stands disposed of accordingly.

Order

Summary

Notification No. 45/2017 Central Tax (Rate)

Notification No. 47/2017 Integrated Tax (Rate)

Order dated 05/02/2019

Issue:-(i)  Appropriate Classification of Gudakhu under the GST Tariff Heading and

(ii) Determination of the liability to pay NCCD (National Calamity Contingency Duty).

Crux:-‘Gudakhu’ manufactured by the Applicant, be classified under GST Tariff Heading ‘2403 99 90’.

Order

Summary

Order modify by AAAR

Order dated 10/04/2019

Issue: 1. Appropriate Classification of Gudakhu under the GST Tariff Heading and
2. Determination of the liability to pay NCCD (National Calamity Contingency Duty).

Crux: The Ruling pronounced by the Advance Ruling Authority, is thus correct and justified. Thus, the appeal filed by the appellant fails and the ruling of the Odisha Authority for Advance Ruling is upheld.

Order

Summary

Notification No. 1/2017 Central Tax (Rate)

Order dated 28/09/2018

Issue:-Whether the applicant is entitled to take  input credit of tax paid on various goods and services used for maintenance of  township, guest house, hospitals and horticulture for paying output tax.?

Crux:-The services which are being availed clearly in relation to the residential colony shall not qualify for input tax credit. On the other hand services received partly in relation to the residential colony and partly in relation to the plant, proportionate ITC to the extent relatable to the plant are available.
As per current provisions of law Dispensing medical service to the employees and others is a supply of service by the employer being nil rated will fall under exempt supplies. Consequently, the inputs and input services received by the applicant for dispensing the exempt service will not qualify for input tax credit in terms of Section 17 (2) of the OGST/CGST Act.
The applicant is entitled to input tax credit of the tax paid on inward supply of input and input services for maintenance of the guest house, transit house, and training hostels, but excluding the food and beverages provided in such establishments. Credit of such input services are as such blocked in clause b of Sub section 5 of section 17 of the OGST and CGST Act.
Plantation and maintenance of such plantation outside the plant area being for non business use will not qualify for input tax credit in terms section 17(1) of CGST and OGST Act. Similarly, services for maintenance of plant and gardens within the residential colony and other public utility created by the applicant will form part of the residential colony and in turn part of the perquisite provided to the employees. On the other hand, Services availed in relation to plantation and gardening within the plant area including mining area and the premises of other business establishment will qualify for input service credit.

Order

Summary

Order partially modified by AAAR

Order dt. 21/01/2019

Issue: 1. M/s.National Aluminium Company Ltd (Appellant-I) has filed the present appeal to allow input tax credit on inputs and input services used by them for maintenance of their township, security services and horticulture meant for township.  
 2.Commissioner, CX & GST, Bhubaneswar(Appellant-II) submitted that AAR is not legal & proper to the extent of :-
(i| Allowing the input tax credit of the services utilized for maintenance of Guest House, Transit House and Trainee Hostel.
(ii) Allowing the input tax credit for the service utilized for plantation and gardening within the plant area including the mining area and the premises of other establishment like administrative building, guest house, transit house and training hostel.

Crux:-The appeal filed by M/s.National Aluminium Company Ltd (Appellant-I) fails, whereas the appeal filed by the Commissioner of CX & GST, Bhubaneswar (Appellant-II) succeeds partially. The ruling of the Odisha Authority for Advance Ruling, pronounced vide its Order NO.02/ODISHA-AAR/2018-19, dated 28.09.2018, is thus modified to the extent that tax paid on inward supplies of goods and services for the transit house/trainee hostel cannot be allowed the benefit of input tax credit. Further the ruling of the AAR that services availed in relation to plantation and gardening within the plant area including mining area and the premises of other business establishments will qualify for input tax credit is found to be correct.

Order

Summary

Section 17 of CGST

Order dated 20/06/2018

Issues:- Whether the services provided by the Applicant to the Government and government aided higher secondary schools under the ICT Project, are covered under the scope of Entry No. 72 of Notification No. 12/2017-Central Tax (Rate) dated 28.06.2017?

Crux:- a) Recipient of the service OKCL is a body corporate which cannot be regarded as Government.

b) The supply undertaken by the applicant is in the nature of composite supply. It includes supply of goods and services which are not naturally bundled. Each of the components of the composite supply are distinctly identifiable both in terms of quantify and value. The service provided or to be provided is not exclusively in the nature of training programme.

c) Though the source of funding for the service is the State Government and, Central Government, yet, as per the contract, the payment responsibility is vested on OKCL.
Therefore, the activities of the applicant by way of supply of goods and services under the ICT project are not covered under Entry 72 of the notification no.12/2017 dated 28.06.2017, to be entitled to the benefit of exemption from GST

Order

Summary

Order upheld by AAAR

Order dated 14/11/2018

Issues:- Whether the services provided by the Applicant to the Government and government aided higher secondary schools under the ICT Project, are covered under the scope of Entry No. 72 of Notification No. 12/2017-Central Tax (Rate) dated 28.06.2017"?

Crux:- a) Recipient of the service OKCL is a body corporate which cannot be regarded as Government.
b) The supply undertaken by the applicant is in the nature of composite supply. It includes supply of goods and services which are not naturally bundled. Each of the components of the composite supply are distinctly identifiable both in terms of quantify and value. The service provided or to be provided is not exclusively in the nature of training programme.
c) Though the source of funding for the service is the State Government and, Central Government, yet, as per the contract, the payment responsibility is vested on OKCL.
Therefore, the activities of the applicant by way of supply of goods and services under the ICT project are not covered under Entry 7.2 of the notification no.12/2017 dated 28.06.2017, to be entitled to the benefit of exemption from GST

Order

Summary

Notification No. 12/2017 Central Tax (Rate)

Order dated 31/10/2018

Issue: Applicability of Entry No. 3 of Notification No.12/2017-Central Tax to the services provided by applicant by way of energy saving street lighting services including OM of the street Lightining installations to Bhubaneswar Municipal Corporation (BMC).

Crux: The services provided by the applicant by way of providing energy efficient street lighting services including OM of the street lighting infrastructure during the contracted period to Bhubaneswar Municipal Corporation (BMC) do not constitute supply of pure services as it involves significant use of goods/materials with stipulation to transfer the total business assets to BMC at the end of the contract period. The benefit of exemption from tax in terms of Sl.3 of the notification No.12/2017- Central Tax (Rate), dated 28.06.2017 is not available to the applicant.

Order

Summary

Order upheld by AAAR

Order dt. 05/03/2019

Issue:-Applicability of Entry No. 3 of Notification No.12/2017-Central Tax to the services provided by them by way of energy saving street lighting services including OM of the street Lightning installations to Bhubaneswar Municipal Corporation (BMC).

Crux:- AAAR do not find any reason to interfere with the ruling passed by AAR.  The services provided by the applicant by way of providing energy efficient street lighting services including OM of the street lighting infrastructure during the contracted period to Bhubaneswar Municipal Corporation (BMC) do not constitute supply of pure services as it involves significant use of goods/materials with stipulation to transfer the total business assets to BMC at the end of the contract period. The benefit of exemption from tax in terms of Sl.3 of the notification No.12/2017- Central Tax (Rate), dated 28.06.2017 is not available to the applicant. They are required to deposit GST as per the rulings.

Order

Summary

Notification No. 12/2017 Central Tax (Rate)

Section 2 of CGST

Schedule II of CGST

Order dated 31/10/2018

Issue:-Classification of “Polypropylene Leno Bags (PP leno Bags)” under GST Tariff heading.

Crux: The item “Polypropylene Leno Bags (PP leno Bags)”, classified under GST Tariff Heading ‘3923 29 90’.

Order

Summary

Order dated 09/10/2018

Issue:- Applicability of Entry No. 72 of Notification No.12/2017-Central Tax read with Entry No. 72 of Notification bearing SRO No. 306/2017-Finance Department, Government of Odisha to the services provided by applicant under the ICT @ School Project.

Crux:-
a) Recipient of the service OKCL is a body corporate which cannot be regarded as Government.
b) The supply undertaken by the applicant is in the nature of composite supply. It includes supply of goods and services which are not naturally bundled. Each of the components of the composite supply are distinctly identifiable both in terms of quantify and value. The service provided or to be provided is not exclusively in the nature of training programme.
c) Though the source of funding for the service is the State Government and Central Government, yet, as per the contract, the payment responsibility is vested on OKCL

Therefore, the activities of the applicant by way of supply of goods and services under the ICT project are not covered under Entry 72 of the notification no. 12/2017 dated 28,06.2017, to be entitled to the benefit of exemption from GST.

Order

Summary

Order upheld by AAAR

Order dt. 29/09/2020

Issue:-Applicability of entry no. 72 of Notification no.12/2017-Central Tax read with entry no.72 of Notification bearing SRO No. 306/2017-Finance Department, Government of Odisha to the services provided by them under the ICT @ School Project.

Crux:- AAAR uphold the advance ruling passed by the authority for advance ruling and held that the appellant is not entitled to the benefit of exemption under entry no.72 of Notification no.12/2017-Central Tax(Rate) Dated 28.06.2017

Order

Summary

Notification No. 12/2017 Central Tax (Rate)