Description

Related Information

Order dated 25/08/2020

Issue: 1. Whether the activity of bullet proof body building (in addition fixing bullet proof windshield glass, bullet proofing of engine and fuel tank) on the motor vehicles (2.5 Ton capacity ) of Chapter heading 87 of the Customs Tariff Act, 1975, supplied by the customer (i.e. free supply) having Tarpaulin cover in the cargo compartment, is classifiable as supply of service under service classification head 9988 (ic) or 9988 (id) of the GST tariff attracting CGST and SGST of 9% + 9% / IGST of 18% under the provisions of the GST Act/ IGST Act 2017?

2. Since the applicant has already charged IGST @ 28% by classifying the supply as supply of goods under GST tariff for goods heading 8707, whether the customer should claim the refund from the department or the applicant should lodge the claim the refund, in the event of the above classification being upheld by the AAR?

Crux: 1. The activity carried out by the applicant by making bullet proof body building (in addition to fixing bullet proof windshield glass, bullet proofing of engine and fuel tank) on the motor vehicles (2.5 Ton capacity) of Chapter heading 87 of the Customs Tariff Act, 1975, supplied by the customer (i.e. free supply) having Tarpaulin cover in the cargo compartment, is a supply of service attracting GST 18% (SGST 9% + CGST 9%).

2. The question related to refund of tax is outside the purview/scope of this authority under Section 97(2) of CGST Act, 2017 hence, no ruling is given.

Order

Summary

Notification No. 12/2017 Central Tax (Rate)

Order dated 30/06/2020

Issue: 1. Whether the lease agreement between the applicant company i.e. the lessee and RLDA is exempt from levy of GST in view of the Notification no.04/2019-CT (Rate) dated 29.03.2019 or Notification no.12/2017-CT (Rate) dated 28.06.2017?

2. Whether the amount which is transferred by the applicant company as security deposit in pursuance to the tender and lease agreement dated 08.11.2019 is exempt under GST in view of the Notification no.04/2019-CT (Rate) dated 29.03.2019 or Notification no.12/2017-CT (Rate) dated 28.06.2017?

3. Whether the amount of Rs.15,86,57,105/- deposited during February, 2019 is exempt under Notification no.04/2019-CT (Rate) dated 29.03.2019 or Notification no.12/2017-CT (Rate) dated 28.06.2017?

Crux: 1.The lease agreement between the applicant company i.e. the lessee and RLDA for a period of 99 years is not exempted from levy of GST in view of the Notification no.04/2019-CT (Rate) dated 29.03.2019 or Notification No.12/2017-CT (Rate) dated 28.06.2017.

2.The amount of Rs.158657105/- which is transferred by the applicant/SPV in pursuance to the tender and lease agreement dated 08.11.2019 is not exempted under GST in view of the Notification no.04/2019-CT (Rate) dated 29.03.2019 or Notification no.12/2017-CT (Rate) dated 28.06.2017.

3.The amount of Rs.158657105/- deposited during February, 2019 is not exempted from GST vide Notification no. 04/2019-Central Tax (rate) dated 29.03.2019 or Notification no.12/2017-CT (Rate) dated 28.06.2017.

Order

Summary

Notification No. 12/2017 Central Tax (Rate)

Order dated 14/05/2020

Issue: 1. Applicability of SAC and classification of the work contract in either of the two codes viz. SAC 9973 – Leasing or rental services concerning machinery & equipment with or without operator or SAC 9954 – Composite supply of Work contract services?

2. What is the difference between operator and manpower as per GST Provisions?

3. Whether the Special Purpose Vehicles in the such work order are classified as “Machinery”?

Crux: The work undertaken by the applicant is a ‘Support Service to Mining is covered under HSN 998622 and attracts GST @ 18% (CGST 9% + SGST 9%) as provided under the Notification No. 11 /2017-Central Tax (Rate) dated 28.06.2017 (as amended).

Question 2 & 3 are beyond the scope of mandate given to this authority as per Section 97(2) of CGST Act, 2017, therefore, no ruling is given.

Order

Summary

Notification No. 11/2017 Central Tax (Rate)

Order dated 14/05/2020

Issue: 1. Whether the contract entered into with AWNL as per the work orders combine of supply, erection, testing and commissioning of materials/equipments for providing rural electricity infrastructure qualifies as a supply for work contract under Section 2(119) of CGST Act?
2. If Yes, whether such supply, erection, testing and commissioning of materials/equipments for providing rural electricity infrastructure made to AWNL would be taxable at the rate of 12% in terms of serial no. 3(vi)(a) of the Notification no.11/2017- Central Tax (Rate) dated 28.06.2017 as amended w. e. f. 25.01.2018?

Crux: 1. The work undertaken by the applicant as per contract entered between the applicant and AWNL along with two Work Orders viz. (a) Supply of materials/equipments and (b) Erection, Testing and Commissioning of Materials/Equipments (supplied in first work order) in building of rural electricity infrastructure is a composite supply of works contract.

2. The work undertaken by the applicant (encompassing both work orders) is a composite supply of works contract and is not covered under entry no. 3(vi)(a) of the Notification no. 11/2017- Central Tax (Rate) dated 28.06.2017 (as amended) as consequentially are not eligible to be taxed at lower rate of 12% (SGST 6% + CGST 6%) and hence are liable to be taxed @18% (CGST 9% + SGST 9%).

Order

Summary

Order uphold by AAAR

Order dated 03/09/2020

Issues:- (I) Whether the contract entered into with AVVNL as per two work orders combine of supply, erection, testing and commissioning of materials/ equipments for providing rural electricity infrastructure qualifies as a supply for work contract under Section 2(119) of the CGST Act?
(II) If yes, whether such supply, erection, testing and commissioning of materials/equipments for providing rural electricity infrastructure made to AVVNL would be taxable at the rate of 12% in terms of Sr. no 3 (vi)of Notification No. 11/2017- C.T.(Rate) as amended w.e.f. 25.01.2018?

Crux:- The work undertaken by the applicant as per contract (encompassing both work orders) is composite supply of Works Contract and is not covered under Entry No. 3(vi) (a) of Notification No. 11/2017-Central Tax(Rate) dated 28.06.2017(as amended); as consequentially are not eligible to be taxed at lower rate of 12%(SGST 6% + CGST 6%) and hence are liable to be taxed @ 18%(CGST 9% + SGST 9%).

Order

Summary

Notification No. 11/2017 Central Tax (Rate)

Order dated 06/05/2020

Issue:  Classification and rate of GST applicable on henna powder?

Crux:  Mehendi /Henna powder is covered under Chapter 33 and will attract GST @18% (CGST 9% + SGST 9%)

Order

Summary

Notification No. 01/2017 Central Tax (Rate)

Notification No. 41/2017 Central Tax (Rate)

Order dated 06/05/2020

Issue:  Classification and rate of GST applicable on the Psyllium Husk Powder.

Crux: Psyllium Husk Powder, a preparation made from Psyllium Plant or its parts is classifiable under HSN 12119032 and attracts GST @ 5% (CGST 2.5% + SGST 2.5%) as provided under Notification No. 1/2017 Central Tax (Rate) dated 28.06.2017 (as amended)

Order

Summary

Notification No. 01/2017 Central Tax (Rate)

Order dated 05/03/2020

Issue: Whether in the facts and circumstances of the case, does the activity carried out by the applicant falls under Entry No. (iv)(a) of Notification No. 11/2017-CT(R)?
Alternatively, whether in the facts and circumstances of the case, does the activity carried out by the Applicant falls under Entry No. (ix) of Notification No. 11/2017- CT(R)?

Crux: (a) The activity proposed to be undertaken by the applicant does not fall under entry no. (iv)(a) of the Notification No. 11/2017- CT(R) dated 28.6.2017.
(b) The activity proposed to be undertaken by the applicant does not fall under entry no. (ix) of the Notification No. 11/2017-CT(R) dated 28.6.2017.

Order

Summary

Notification No. 11/2017 Central Tax (Rate)

M/s Clay Craft India Pvt. Ltd. v/s J.P.Meena (CGST Member) and Mr. Hemant Jain (SGST Member) 

Order dated 20.02.2020

Issue: (a) Whether GST is payable under Reverse Charge Mechanism (RCM) the salary paid to Director of the company who is paid salary as per contract.

(b) Whether the situation would change from (a) above if the Director also is a part time Director in other company also.

Crux: (a) The consideration paid to the Directors by the applicant company will attract GST under reverse charge mechanism as it is covered under entry No. 6 of Notification No. 13/2017 Central Tax (Rate) dated 28.06.2017 issued under Section 9(3) of the CGST Act, 2017.

(b) Situation will remain same as (a) above and will attract GST under reverse charge mechanism.

Order

Summary

Order uphold by AAAR

Order dated 02/07/2020

Issues:-(a) Whether GST is payable under Reverse Charge Mechanism (RCM); the salary paid to Director of the company who is paid salary as per employment contract, after deduction of TDS as well as PF.
(b) Whether the situation would change from (a) above if the Director also is a part time Director in other company also.

Crux:- a. The consideration paid to the Directors by the applicant company will attract GST under reverse charge mechanism as it is covered under entry No. 6 of Notification No. 13/2017- Central Tax (Rate) dated 28.06.2017 issued under Section 9(3) of the CGST Act, 2017.
b. Situation will remain same as (a) above and will attract GST under reverse charge mechanism.

Order

Summary

M/s Latest Development Advisory Ltd v/s J.P.Meena (CGST Member) and Mr. Hemant Jain (SGST Member) 

Order dated 07.02.2020

Issue: Whether the applicant is required to pay GST on water charges collected from the customers for supply of water under Contract Il?

Crux: Contract-I and Contract-II appears to be directly linked with each other as there is no case of direct supply of water by the applicant to the individual residents of the society therefore the applicant is required to pay GST as applicable on Contract-I.

Order

Summary

 

M/s SEVK RAM SAHU v/s J.P.Meena (CGST Member) and Mr. Hemant Jain (SGST Member) 

Order dated 18.12.2019

Issue: (i) Whether the entry number 10 of the Notification No. 12/2017 Central Tax (Rate) dated 28.06.2017 is applicable to the applicant and accordingly will the services provided by the applicant?

(ii) If the Notification No. 12/2017 Central Tax (Rate) dated 28.06.2017 is not applicable, then what will be classification and HSN for services provided by the applicant?

Crux: The services provided by way of pure labour contract supplied by the applicant for the construction of flats under Pradhan Mantri Awas Yojana (PMAY) is covered under Entry 10 of the Notification No. 12/2017 Central Tax (Rate) dated 28.06.2017 (as amended).

Order

Summary

 

M/s Manju Devi v/s J.P.Meena (CGST Member) and Mr. Hemant Jain (SGST Member) 

Order dated 18.12.2019

Issue: a. Whether exemption of “Supply of Farm Labour” as provided in Notification No. 12/2017 and Notification No. 09/2017 Integrated Tax (rate) dated 28.06.2017 is available to supplier of manpower falling under SAC 99851?

b. Is it necessary for recipient of “Supply of Farm Labour” service to be fully engaged in agriculture and not doing any other activity?

c. What type of documents/ evidence is required to be kept as a supplier of manpower for availing exemption as “Supply of Farm Labour” under Notification No. 12/2017 Central Tax (Rate) dated 28.06.2017 and Notification No. 09/2017 Integrated Tax (rate) dated 28.06.2017?

Crux:  Exemption available to ‘supply of farm labour’ services falling under Chapter heading 9986 under Notification No. 12/2017 Central Tax (Rate) dated 28.06.2017 and Notification No. 09/2017- Integrated Tax (rate) dated 28.06.2017 is not available to supply of manpower services falling under SAC 99851.
The Question ‘b’ and ‘c’ raised by the applicant are beyond the scope of this authority as defined under Section 97 (2) of the GST Act, 2017. Hence no ruling is given.

Order

Summary

 

M/s JVS Foods Pvt. Limited v/s J.P.Meena (CGST Member) and Mr. Hemant Jain (SGST Member) 

Order dated 29.11.2019

Issue: whether the goods FRK manufactured and sold by them will fall under Chapter-10, Tariff item 1006 as Rice and description of goods 10061090 others (IGST Nil/ 5%, CGST Nil/2.5%, SGST Nil/2.5%)?

Crux: Fortified Rice Kernels (FRK), manufactured and supplied by the applicant is classifiable under HSN 19049090 and attracts GST @ 18% (SGST 9% + CGST 9%).

Order

Summary

Order uphold by AAAR

Order dated 01/04/2020

Issues:- whether the goods FRK manufactured and sold by them will fall under Chapter-10, Tariff item 1006 as Rice and description of goods 10061090 others (IGST Nil/ 5%, CGST Nil/2.5%, SGST Nil/2.5%)?
 
Crux:- AAAR held that the FRK manufactured by the appellant do not have essential character of natural rice and also does not merit classification under Chapter 10 in terms of Chapter Note 1 (A) of the said Chapter. It is appropriately classifiable under the sub-heading of Chapter 19 i.e. under Chapter sub-heading 19049000.

Order

Summary

Order dated 31.01.2019

Issue: whether the activity of supply, design, installation, commissioning and testing of reverse osmosis plant is supply of goods or supply of services and what shall be the rate of GST on it?"

Crux:  The activity of supply, design, installation, commissioning and testing of reverse osmosis plant and O &M work by the applicant is a Works Contract of Composite Supply. This composite supply is a mixed of goods and services and predominant supply is supply of services. Since this supply is proposed to be undertaken for a Government Department, hence the rate of tax applicable on given service (as it is a works contract service) shall fall under Entry 3(iii) with HSN Code 99544 and it should be IGST@12%(CGST@6%, SGST@6%).

Order

Summary

Order uphold by AAAR

Order dated 15/05/2019

Issues:- whether the activity of supply, design, installation, commissioning and testing of reverse osmosis plant is supply of goods or supply of services and what shall be the rate of GST on it?"
 
Crux:- AAAR modify the Advance Ruling rendered by the Rajasthan Authority for Advance Ruling, and held that the activities of supply, design, installation, commissioning and testing of solar energy based water pumping systems , whose time of supply falls after 31.12.2018, are both supply of Goods and supply of Service in terms of entry no. 234 ibid, read with entry no. 38 ibid, with rate of GST as prescribed under these entries. Consequently, the appeal filed by the appellant is disposed of .

Order

Summary

Section 07 of CGST 

Order dated 09.01.2019

Issue:  "Whether Preparation and serving of food to children of government schools under Mid-Day meal Program of Government and serving of food under Government sponsored Anganwadi and the transfer of goods / capital equipments, exclusively used for Mid-Day Meal program and Anganwadi meals program and the sale of scrap items which was generated during Mid-Day Meal program is covered under the scope of 'supply' as per section 7 of CGST/RGST Act, 2017.


Crux:  1. Preparation and serving of food to children of government schools under Mid-Day meal Program of Government and serving of food under Government sponsored Anganwadi meals program is covered under the scope of ’supply’ as per section 7 of CGST/RGST Act, 2017.
2. The transfer of goods / capital equipments, exclusively used for Mid-Day Meal (MDM) program and Anganwadi meals program sponsored by Government, between different kitchens of applicant which are ‘distinct persons’ as per GST law is covered under the scope of ‘supply’ as per section 7 of CGST/RGST Act, 2017.
3. The sale of scrap items (as mentioned in statement of facts by the applicant) which was generated during Mid-Day Meal program is an activity of sale and thus covered under the scope of ‘supply’ as per section 7 of CGST/RGST Act, 2017.

Order

Summary
 

Section 07 of CGST 

Order dated 27.04.2018

Issue: (i) Whether the supply under the contract for ‘Design, Realization, Integration and Commissioning of 1.2m Trisonic Wind Tunnel at Vikram Sarabhai Space Centre, ISRO, Thiruvananthapuram can be considered as supply of equipment eligible for the concessional rate of GST under SI.No.243A of First Schedule of Notification No.01/2017 Integrated Tax (Rate) dtd.28-06-2018.
(ii) If the above supply is considered as works contract whether it would be covered under Entry SI.No. 3 of Notification No.08/2017 Integrated Tax (Rate) dtd. 28-06-2017 as amended by Notification No.24/2017 Integrated Tax (Rate) dtd.21-09-2017 attracting GST at the rate of 12%.

Crux:(i) The supply under the contract cannot be considered as supply of equipment eligible for concessional rate of goods and services tax as per SI. No.243B of First Schedule of Notification No.01/2017 Integrated Tax (Rate) dated 28.06.2017.
(ii) The work of design, realization, integration and commissioning of 1.2m Trisonic Wind Tunnel as a turnkey project will fall under the definition of works contract under Section 2 (119) of the CGST Act, 2017. The Service provided to the Central Government by way of construction, erection, commissioning, installation, (completion, fitting out, of a civil structure or any other original works meant predominantly for use other than for commerce, industry, or any other business or profession will attract 12% GST as per Sl.No.3(vi) of Notification No.08/2017 Integrated Tax (Rate) dated 28.06.2017.

Order

Summary

Notification No. 08/2017 Integrated  Tax (Rate)

Order dated 05/09/2019

Issue: What shall be rate of GST on activity of sub-contract for earthwork in relation to construction of access controlled Nagpur-Mumbai Super Communication Expressway (Maharashtra Samruddhi Mahamarg)

Crux: The rate of GST on the work of earthwork will be 18% (CGST 9% + SGST 9%).

Order

Summary

Notification No. 11/2017 Central Tax (Rate)

Order dated 30/08/2019

Issue: 1. Does Transportation by own vehicles on the basis of Invoice(s) and E-way Bill without issuing the LR/GR by the Applicant Transporter will covered under exempted supply/non GST supply.
2. Does Rule 42 of the CGST Rules 2017 will also apply in case where there is GST and Non GST Supplies and there is a common consumption of input and input services?

Crux: 1. The applicant is a registered GTA Service provider under GST and is not exempted from paying GST.
2. Where the goods or services or both used by the registered person partly for effecting taxable supplies including zero-rated supplies and partly for effecting exempt supplies, the amount of credit shall be restricted to so much of the input tax as is attributable to the said taxable supplies including zero-rated supplies as per provisions and procedure prescribed under Section 17(2) of GST Act read with Rule 42 of GST Rules, 2017.

Order

Summary

Section 17 of CGST 

Notification No. 11/2017 Central Tax (Rate)

Rule 42 of CGST

Order dated 09/01/2019

Issue: a. What should be the place of business to be considered for the purpose of registration'
b. Since no billing is done from any other state other than Jaipur and even input services bills are billed at Jaipur thus the applicant is required to take registration at Jaipur only or at any other state'
c. Whether having a vacant lands on lease for parking of trailers/trucks at various cities for operational purpose requires registration at various cities when billing, control, registered office, head office and management is centralized located at Jaipur.

Crux: a. The applicant is providing services from his registered place of business i.e. Jaipur in the state of Rajasthan. Therefore place of business for the purpose of registration is Jaipur.

b. The registration under GST regime is applicable on place of supply of goods or services or both. As per the facts, the place of supply is from the state of Rajasthan, thus applicant is required to take registration at Jaipur, Rajasthan only.

c. The vacant land taken on lease by the applicant for parking of vehicles and drivers rest is outside the state of Rajasthan. The authority for advance ruling is created under SGST/UTGST Act and thus rulings are applicable within the particular state only, hence question relating to registration of vacant lands taken on lease in various states outside Rajasthan is out of purview of the authority and thus no ruling is given on this aspect.

Order

Summary

Section 17 of CGST 

Notification No. 11/2017 Central Tax (Rate)

Rule 42 of CGST

Order dated 22/08/2019

Issue: 1. What will be the treatment of claiming of Input Tax Credit under Section 16 of the GST Act in regard to by-product Cotton Seed Oil Cake which is taxable at 0%?
2. Whether the provision of Apportionment Input Tax Credit u/s 17 of GST Act will be also applicable on the by-product Cotton Seed Oil Cake?
3. What will be the treatment of claiming of Input Tax Credit on Raw Cotton purchased from agriculturist on whom tax @ 5% is paid under Reverse Charge Mechanism?
4. What will be the treatment of claiming of Input Tax Credit on Plastic Bags (Bardana) which is only used for packing of the cotton seed oil cake?
5. Whether the applicant has to reverse the Input Tax Credit for the period of 2017-18, 2018-19 as per the Rule 42 of the CGST Rules, 2017?

Crux: 1. As per Section 17(2) of GST Act, 2017 the amount of credit shall be restricted to so much of the input tax that is attributable to the taxable supplies including zero rated supplies. As the Cotton Seed Oil Cake is exempt from GST, the applicant has to reverse the amount of credit attributable to the supply of the Cotton Seed Oil Cake as per provisions and procedure prescribed under Section 17(2) of GST Act, 2017 read with rule 42 of GST Rules, 2017.
2.The provision of Apportionment of Input Tax Credit u/s 17 of GST Act will be applicable on the by-product Cotton Seed Oil Cake.
3.The applicant is eligible to claim Input Tax Credit on Raw Cotton purchased from agriculturist on whom tax @ 5% is paid under Reverse Charge Mechanism under Section 16 of GST Act, 2017, however, the amount of credit shall be restricted to so much of the input tax that is attributable to the taxable supplies including zero rated supplies as per Section 17 (2) of GST Act,2017.
4.The input tax credit on Plastic bags (Bardana) is eligible as per Section 16 of GST Act, 2017 but in the instant case as the applicant is using Plastic bags (Bardana) exclusively for packing of the Cotton Seed oil Cake which is exempt from GST therefore, the applicant have to reverse the input tax credit on Plastic bags (Bardana) as per provisions of Section 17 (2) of GST Act, 2017.
5.As the subject matter pertains to past-period therefore no ruling is given on this issue under Section 95(a) of GST Act, 2017.

Order

Summary
 

Section 16 of CGST 

Section 17 of CGST 

Order dated 30/07/2019

Issue: 1 Whether facilitating the execution of works requiring modification/ augmentation/ shifting/ additions to the transmission system of RVPN at the specific request of the consumer/intending agency under Deposit Work is a 'Supply' in terms of Section 7 of the CGST Act, 2017?

2.If the Deposit Work as aforesaid is a 'Supply', what shall be the value of the supply in terms of Section 15 of the GST Act, 2017 in the event of :
a. Work executed by RVPN itself.
b. Work executed by the consumer/intending agency under supervision of RVPN. 

3. What would be the applicable GST tax rate on the above supply?

Crux: 1 .Facilitating the execution of work (Deposit Work) by the applicant to the consumer/intending agency is covered under the 'scope of supply' in terms of section 7 of GST Act, 2017.

2.In both the cases as mentioned by the applicant, value shall be the transaction value, that is the price actually paid or payable in terms of Section 15 of the GST Act 2017.

3.The rate of GST shall be 18% (SGST 9% +CGST 9%).

Order

Summary
 

Section 15 of CGST 

Section 7 of CGST

Order dated 02/07/2019

Issue: Whether the applicant is liable to pay tax on the basis of reverse charge mechanism on the freight paid by the applicant on transportation of Cotton seed oil cake having HSN code 2306.

Crux: The Applicant is liable to pay GST under Reverse charge Mechanism being Recipient of GTA Services

Order

Summary
 

Notification No. 13/2017 Central Tax (Rate)

Order dated 19/06/2019

Issue: Whether the applicant being a cooperative society registered under the Rajasthan Co-operative Societies Act, 1965, now consolidated to Rajasthan State Co-operative Society Act, 2001 is liable to deduct tax at source (TDS) under GST from payment made to it by vendors for providing/ procuring taxable goods and services for making its supplies?

Crux: The applicant is not covered under the provisions of Section 51 of GST Act, 2017 therefore not liable to deduct tax at source.

Order

Summary
 

Section 51 of CGST 

Order dated 03/06/2019

Issue: a. What is the classification of goods and services supplied by the applicant?
b. What will be the applicable rate of GST on goods and services supplied by the applicant?

Crux: The goods and services supplied by the applicant are classifiable under HSN 998316 (Information technology infrastructure and network management services) attracting GST @ 18% (SGST 9% + CGST 9%).

Order

Summary
 

Notification No. 11/2017 Central Tax (Rate)

Order dated 29/05/2019

Issue: a. Whether the Lease Agreement between the Applicant Company i.e. the lessor and the Lessee for a period of 99 years is a Sale of immovable property and outside GST and is exempt from levy of GST?

b. If the present transaction of giving land on lease of 99 years is taxable under GST, then at what rate and what HSN Code is applicable?

Crux: The Lease Agreement between the Applicant i.e. the lessor and the Lessee for a period of 99 years is a Lease Agreement of immovable property classifiable under HSN 9972 and attracts GST @18% (SGST 9% + CGST 9%).

Order

Summary
 

Section 7 of CGST

Schedule II of CGST 

Order dated 28/05/2019

Issue: Whether there is any 'Asset Transfer' involved which is a supply leviable to GST in the work of shifting & raising of transmission lines owned by RVPNL by NHAI in the course of widening, modification & diversification of its highways after completion of this work?
Without prejudice to the submissions, if there is an 'Asset Transfer' which is a supply under GST, then who is liable to pay GST?
If above GST is to be paid by the Applicant, then the same will be exempt vide Entry 4 of Notification no. 12/2017 CT(R) dated 28.06.2017?

Crux: The asset constructed by the applicant does not fall under the category of “goods” (as defined under GST Act, 2017), therefore no supply is involved and accordingly GST is not leviable.

Order

Summary
 

Schedule II of CGST 

Notification No. 12/2017 Central Tax (Rate)

Order dated 20/05/2019

Issue: a. What is the classification of service provided in accordance with Notification No. 11/2017-CT (Rate) dated 28.06.2017 read with annexure attached to it by the State of Rajasthan to M/s Vinayak Stone Crusher for which royalty is being paid? Whether said service can be classified under 9973 specifically under 997337 as Licensing services for the right to use minerals including its exploration and evaluation or as any other service?
b. What is the rate of GST on given services provided by State of Rajasthan to M/s Vinayak Stone Crusher for which royalty is being paid?
c. Whether services provided by State Government of Rajasthan is governed by applicability of Notification No 13/2017-CT (Rate) dated 28.06.2017 under entry number 5 and whether M/s Vinayak Stone Crusher is taxable person in this case to discharge GST under reverse charge mechanism or whether given service is covered by exclusion clause number (1) of entry no 5 and State Government of Rajasthan is liable to discharge GST on same?
d. Whereas the Excess Royalty Collection Contractor (ERCC) by way of assigning the right to collect royalty on behalf of the State Government on the mineral dispatched by the- mining lease holders. However as per the Notification No 14/2018-CT (Rate) dated 28.07.2018 the services supplied by State Government to ERCC for collection of Royalty became exempt whether M/s Vinayak Stone Crusher is taxable person in this case to discharge GST under reverse charge mechanism?

Crux: a. The service provided by the State of Rajasthan to the applicant for which royalty is being paid is classifiable under 997337.
b. The rate of GST on service provided by the State of Rajasthan to the applicant for which royalty is being paid is 18% (SGST9% +C GST9°/0).
c. As the applicant is recipient of the services provided by the State of Rajasthan he is liable to pay GST on reverse charge basis under entry number 5 of the Notification No 13/2017-CT (Rate) dated 28.06.2017 and is not covered by exclusion clause number (1) of entry No.5 of the said Notification.
d. The services supplied by State Government of Rajasthan to Excess Royalty Collection Contractor (ERCC) by way of assigning the right to collect royalty on behalf of the State Government is exempted with certain restrictions by way of Notification No.12/2017-Central Tax (Rate) dated 28-6-2017 as amended by Notifi 14/2018-CT (Rate) dated 26.07.2018, However, the a liable to discharge GST on reverse charge basis.

Order

Summary
 

Notification No. 13/2017 Central Tax (Rate)

Order dated 20/05/2019

Issue: I. What shall be the nature of service and classification in accordance with Notification No. 11/2017- CT(R) dated 28.06.17 read with annexure attached to it in relation the following services:
a) Service provided by the applicant to the delegates.
b) Service provided by the applicant to the exhibitors.

II. In relation to the brand promotion packages offered by the applicant in the course of the event,
a) What shall be the nature of service and classification in accordance with Notification No. 11/ 2017-CT(R) dated 28.06.17 read with annexure attached to it?
b) Whether the applicant is liable to pay tax on services provided to the brand promoters or the liability to pay tax on such services falls on recipient under reverse charge according to Notification No. 13/2017 – Central Tax (Rate)?

III. Whether Input Tax Credit is admissible for the applicant in respect of tax paid on the following:
a) Services provided by the hotel including accommodation, food & beverages.
b) Supply of food and beverages by outside caterers
c) Services provided by event manager like pickup & drop, exhibition stall setup, tenting, etc.

Crux: I The Service provided by the applicant to the delegates and exhibitors is a composite supply and classifiable under Service Code 998596 having Service description “Events, exhibitions, conventions and trade shows organizations and assistance services” as per Annexure: Scheme of Classification of Services to Notification No. 11/ 2017-Central Tax (Rate) dated 28.06.2017(as amended from time to time).

II. The service of brand promotion packages offered by the applicant in the course of the event is a composite supply and classifiable under Service Code 998397 having Service description “Sponsorship services and brand promotion services” as per Annexure: Scheme of Classification of Services to Notification No. 11/ 2017-Central Tax (Rate) dated 28.06.2017 (as amended from time to time) .

The applicant is liable to pay GST on service of brand promotion and not covered under reverse charge mechanism.
III. Input Tax Credit is admissible to the applicant in respect of tax paid on the following:-
a) Services provided by the hotel including accommodation, food & beverages.
b) Supply of food and beverages by outside caterers
c) Services provided by event manager like pickup & drop, exhibition stall setup, tenting, etc.

Order

Summary
 

Section 16 of CGST 

Notification No. 11/2017 Central Tax (Rate)

Notification No. 13/2017 Central Tax (Rate)

Order dated 08/05/2019

Issue:1. What is the classification of Slabs of Quartz (Artificial Stone)?
2. What will be the applicable rate of GST on Quartz Slabs (Artificial Stone)?

Crux: a. The Slabs of Quartz (Artificial Stone) is classifiable under HSN Code 68101990.
b. The applicable rate of GST on Quartz Slabs (Artificial Stone) is 18% (CGST 9% +SGST 9%).

Order

Summary
 

Order dated 30/04/2019

Issue:Repair Work

1. Whether GST paid on building materials, such as cement, concrete, bricks, cement or marble or stone slabs or tiles, paint, polish and any other building materials meant for repair of building shall be available for ITC?
2.Whether GST paid on labour supply for carrying out repair of building shall be available for ITC, where material and supervision is provided by the applicant?
3.Will it make any difference if aforementioned works are carried out in a composite manner as a works contract, where material as well as labour is supplied by a contractor as a composite supply under works contract?

Repair Work relating to Electric Installation / Sanitary Fittings

1.Whether GST paid on electrical fittings, such as Cables, Switches, NCB, and other electrical consumables meant for repair of existing electrical fittings shall be available for ITC?
2.Whether GST paid on sanitary fittings, such as tiles, commode, bath tub, wash basin, PVC pipes and other bath room sanitary fittings and consumables meant for repair of existing sanitary fittings shall be available for ITC?
3.Whether GST paid on labour supply for carrying out repair of electrical installation and/ or sanitary fittings shall be available for ITC, where material and supervision is provided by the applicant?
4.Will it make any difference if aforementioned works are carried out in a composite manner as a works contract, where material as well as labour is supplied by a contractor as a composite supply under works contract?

Furniture & Fixture repairing work

1.Whether GST paid on wood, board, mica, tapestry, paint;"polish and other consumables meant for repair of existing furniture & fixtures shall be available for ITC? 2. Whether GST paid on labour supply for carrying out repair of furniture & fixtures shall be available for ITC, where material and supervision is provided by the applicant?3.Will it make any difference if aforementioned works are carried out in a composite manner as a works contract for carrying out repair and maintenance job on movable furniture & fixtures such as, Sofa, Table, Chairs, Door, Cabinets, etc. where material as well as labour is supplied by a contractor as a composite supply under works contract?

Crux: 1.1 ITC will not be available to the extent of capitalization of building materials.
1.2 ITC will not be available to the extent of capitalization of GST on labour supply.
1.3 ITC will not be available to the extent of capitalization of building materials and service of labour supply.
2.1 ITC will not be available to the extent of capitalization of electrical fittings.
2.2  ITC will not be available to the extent of capitalization of sanitary fittings.
2.3 ITC will not be available to the extent of capitalization of service of labour supply.
2.4 ITC will not be available for works contract service to the extent of capitalization of supply of goods and services.
3.1 ITC for GST paid on supply of above mentioned goods will be available in accordance with Section 16 of CGST/RGST Act, 2017.
3.2 ITC will be available for service of labour supply in accordance with Section 16 of CGST/RGST Act, 2017.
3.3 ITC will be available for GST paid on composite supply of goods (furniture & fixtures) and services (manpower supply) in accordance with Section 16 of CGST/RGST Act, 2017.
3.4 ITC will be available for GST paid on purchase of new ready to use furnitures in accordance with Section 16 of CGST/RGST

Order

Summary

Section 16 of CGST

Section 17 of CGST

Order dated 16/04/2019

Issue: What is the classification when the Frozen Chicken is sold in packaged form and it's HSN Code?
Whether frozen chicken as sold by the company is exempt under Entry No. 9 of Notification No. 02/2017-CT(R)?

Crux: The Branded Frozen Chicken supplied in a unit container is classifiable under HSN Code 02071200.
The Frozen Chicken supplied by the applicant is not exempted under Entry No. 9 of Notification No. 02/2017-CT(Rate) dated 28.06.2017(as amended from time to time).

Order

Summary

Order uphold by AAAR

Order dated 02/08/2019

Issues:- Question-1 : What is the classification when Frozen chicken is sold in packaged form and its HSN code?
Question-2 : Whether frozen chicken as sold by the company is exempt under Entry No. 9 of the Notification No. 2/2017-C.T. (R), dated 28-6-2017?

Crux:- (a) The Branded Frozen Chicken supplied in a unit container is classifiable under HSN Code 0207 12 00.
(b) The Frozen Chicken supplied by the applicant is not exempted under Entry No. 9 of the Notification No. 2/2017-C.T. (Rate), dated 28-6-2017 (as amended from time to time).

Order

Summary

Notification No. 01/2017 Central Tax (Rate)

Notification No. 02/2017 Central Tax (Rate)

Order dated 16/04/2019

Issue: Whether parts of sprinkler system sold by us like Latch Clamp, C-Clamp, Foot Batten, Riser Pipe, Aluminum Rivet and Mini Sprinkler Rod etc. exclusively meant for use in Sprinklers and drip irrigation system but sold in isolation as parts and not as a complete system under the heading 8424 and the tax rate applicable on such components/parts when sold separately and not as a part of the sprinkler/ drip irrigation?

Crux: The metal parts manufactured and supplied by the applicant will not be covered under Entry No. 195B of Schedule II of Notification No.01/2017 dated 28.06.2017.

Order

Summary
 

Notification No. 01/2017 Central Tax (Rate)

Circular No. 81/55/2018-GST

Order dated 16/04/2019

Issue: Considering Note No. 1, 2, 3 of Section XVI and Note No. 2 of Chapter 84, whether based on rules of interpretation of HS codes, the items made of vulcanized rubber like Rubber Ring/GASKET/Seal, Rubber Foot Batten Washer and Rubber  Grommets falling under the heading 4016 are taxable as  specific rubber items having a GST rate of 18% or as  components of sprinkler/Drip irrigation system having a tax rate of 12% under heading 84249000. It is pertinent to note that these items are designed and shaped that these can be used only in sprinkler/drip irrigation equipment and have no other use

Crux: The goods manufactured and supplied by the applicant viz. Rubber Ring/Gasket/Seal, Rubber Foot Batten Washer and Rubber Grommets are classifiable under Chapter Heading 4016 and attract GST @ 18% (CGST 9% + SGST 9%).

Order

Summary
 

Notification No. 01/2017 Central Tax (Rate)

Circular No. 81/55/2018-GST

Order dated 16/04/2019

Issue: Will Khadi readymade garments to be included under the entry of Khadi fabric under chapter 50 to 55 of GST classification?
 If not, then what is the correct classification and rate of tax on Khadi readymade garments?

Crux: Khadi readymade garments are not covered under the entry of 130A, chapter heading 50 to 55 of Notification No. 02/2017-Central Tax (Rate) dated 28.06.2017.Khadi readymade garments will be classifiable under Chapter heading/tariff item 62, as per Notification No. 01/2017-Central Tax (Rate) dated 28.06.2017  will attract GST as follows-:
a. If the sale value of a readymade khadi garments manufactured by the applicant is less than Rs. 1000/- will attract GST @ 5% (SGST 2.5% + CGST 2.5%);
b. If the sale value of a readymade khadi garments manufactured by the applicant is more than Rs. 1000/- will attract GST @ 12% (SGST 6% + CGST 6%)

Order

Summary
 

Notification No. 01/2017 Central Tax (Rate)

Notification No. 02/2017 Central Tax (Rate)

Order dated 25/03/2019

Issue: Whether the activity of O & M of Fluoride control project on ESCO Model and O & M work supply of goods or supply of services and what shall be the rate of GST on it?

Crux: The activity of O & M of Fluoride Control Project on ESCO Model and O & M work by the applicant is being undertaken for a Government Department. In this activity of Composite supply of goods and services the applicability of GST will be as under -:
Composite supply of goods and services where supply of goods is below 25% out of total value of supply then GST will be NIL.
Composite supply of goods and services where supply of goods is more than 25% of the total value of supply then GST will be @12% (SGST 6% +CGST 6%).

Order

Summary
 

Notification No. 11/2017 Central Tax (Rate)

Notification No. 12/2017 Central Tax (Rate)

Order dated 25/03/2019

Issue: (i) What is the classification of service provided in accordance with Notification No. 11/2017-CT (Rate) dated 28.06.2017 read with annexure attached to it, by the State of Rajasthan to M/s Wolkem Industries Limited for which royalty is being paid?
(ii) Whether said service can be classified under 9973 specifically under 997337 as Licensing services for the right to use minerals including its exploration and evaluation or as any other service?
(iii) What is the rate of GST on given services provided by the State of Rajasthan to M/s Wolkem Industries Limited for which royalty is being paid?

Crux: The activity undertaken by the applicant is classifiable under Heading 9973 (Leasing or rental services, with or without operator), as mentioned in the annexure at Serial No. 257    (Licensing services for the right to use minerals including its exploration and evaluation) sub heading 997337 of notification number 11/2017-CT (Rate) dated 28.06.2017. The applicant is liable to discharge tax liability under reverse charge mechanism vide Notification No 13/2017-CT (Rate), dated 28.06.2017 (as amended from time to time) of the CGST Act, 2017.

The activity undertaken by the applicant attracts 18% GST (9% CGST+ 9% SGST).

Order

Summary
 

Notification No. 11/2017 Central Tax (Rate)

Order dated 22/03/2019

Issue: 1.Whether the applicant is liable for charging goods and service tax under the RGST Act, 2017 and CGST Act, 2017 on providing service for procurement of agricultural produce i.e. oilseeds and pulses from farmers either itself or through Kray Vikray Sahakari Samiti on behalf of its principal i.e. National Agriculture CO-Operative Marketing federation of India Ltd. (NAFED).

2.Whether the applicant is liable for charging RGST/CGST or IGST as the case may be on its outward supplies of goods as well as services after having procured through Krah Vikrah,Sahakari Samiti according to the purchase order of the NAFED.

3.  Whether the applicant being a Co-Operative society registered under the Rajasthan State Co-Operative Society Act, 1953 now consolidated in the Rajasthan Co-Operative Societies Act, 2001  is liable to deduct Tax at Source (TDS) from payment to or credit of Krah Vikrah, Sahakari Samiti/RAJFED under Notification No. 90/2018-central tax dated 13.09.2018 for their services of procurement of oilseeds and pulses for the applicant to be supplied by the applicant to its principal NAFED.

4. Whether the applicant being a Co-Operative society registered under the Rajasthan State Co-Operative Society Act, 1953 now consolidated in the Rajasthan Co-Operative Societies Act, 2001 is liable to deduct Tax at Source(TDS) from payment to or credit of RAJFED under Notification No. 50/2018-Central Tax dated 13.09.2018 for their services of procurement of gunny bags, transportation, insurance and services of surveyors for the applicant to be supplied by the applicant to it’s principal NAFED itself. 

Order

Summary

Notification No. 12/2017 Central Tax (Rate)

Section 51 of CGST

Order dated 29/03/2019

Issue: whether Sl.no.3(vi)(a) of notification no. 11/2017 - Central Tax (Rate) dt.28 June 2017 is applicable on the works contract undertaken by it and determination of liability to pay Tax

Crux: The GST rate applicable on the project undertaken by the applicant is 18% (SGST 9% +CGST 9%)

Order

Summary

Notification No. 11/2017 Central Tax (Rate)

      Section 2 of CGST

Order dated 15/03/2019

Issue: Applicability of GST on Natural Calcite Powder.

Crux: The Natural Calcite Powder is classifiable under HSN Code 25309030 and attracts GST @ 5% (CGST @ 2.5% and SGST @ 2.5%).

Order

Summary

Chapter 25 of GST Tariff Act

Order dated 14/03/2019

Issue: Whether the TDS provisions are applicable on the services received by the applicant.

Crux: · Pure Services will attract Nil rate of duty and provisions of GST TDS will not be applicable.
·  In Composite supply of goods and services where supply of goods is not more than 25% of the total value of supply, will attract Nil rate of duty and provisions of GST TDS will not be applicable.
·  In Composite supply of goods and services where supply of goods is more than 25% of the total value of supply, will attracts GST @ 12% (SGST 6% +CGST6%) if the activity fall under purview of Serial No. 3 of Notification 11/2017 (CT-rate) dated 28.06.2017 as amended from time to time and if not, then GST @ 18% (SGST 9% +CGST 9%) will be applicable. Provisions of GST TDS will apply as the activity in this case is taxable.

Order

Summary
 

Notification No. 11/2017 Central Tax (Rate)

Notification No. 12/2017 Central Tax (Rate)

Section 51 of CGST

Order dated 15/02/2019

Issue: a. What is the classification of service provided in accordance with Notification No. 11/2017-CT (Rate) dated 28.06.2017 read with annexure attached to it, by the State of Rajasthan to M/s Aravali Polyart Private Limited for which royalty is being paid? Whether said service can be classified under 9973 specifically under 997337 as Licensing services for the right to use minerals including its exploration and evaluation or as any other service?

b. What is the GST rate applicable on given services provided by State of Rajasthan to M/s Aravali Polyart Private Limited for which royalty is being paid?

Crux: The activity undertaken by the applicant is classifiable under Heading 9973 (Leasing or rental services, with or without operator), as mentioned in the annexure at Serial No. 257 (Licensing services for the right to use minerals including its exploration and evaluation) sub heading 997337 of notification number 11/2017-CT (Rate) dated 28.06.2017. The applicant is liable to discharge tax liability under reverse charge mechanism vide Notification No 13/2017-CT (Rate), dated 28.06.2017 (as amended from time to time) of the CGST Act, 2017.

Order

Summary

Order uphold by AAAR

Order dated 31/05/2019

Issues:- a. What is the classification of service provided in accordance with Notification No. 11/2017-CT (Rate) dated 28.06.2017 read with annexure attached to it, by the State of Rajasthan to M/s Aravali Polyart Private Limited for which royalty is being paid? Whether said service can be classified under 9973 specifically under 997337 as Licensing services for the right to use minerals including its exploration and evaluation or as any other service.
b. What is the GST rate applicable on given services provided by State of Rajasthan to M/s Aravali Polyart Private Limited for which royalty is being paid?
 
Crux:- AAAR uphold the ruling ruled by AAR. Thus, the impugned Service is covered under the revised entry No. (viii) of the Notification No. 11/2017- Central Tax (R) dated 28.06.2017 attracting GST @ 18 %

Order

Summary
 

Notification No. 11/2017 Central Tax (Rate)

Notification No. 13/2017 Central Tax (Rate)

Order dated 15/02/2019

Issue: 1. When the Applicant is operating under the Margin Scheme notified under Rule 32(5) of the Central Goods and Service Tax Rules, 2017 (“CGST Rules, 2017”) by selling the used lead acid batteries to other manufacturers whether such used lead acid batteries qualify as ‘second hand goods’ and thus covered under the Margin Scheme notified under Rule 32(5) of the CGST Rules, 2017?

2. When the Applicant is selling goods under the Margin Scheme notified under Rule 32(5) of the Central Goods and Service Tax Rules, 2017. The Tax on Outward Supply under the Margin Scheme would be qualified under which of the following heading in GSTR-3B in following cases:-

a) When Applicant selling the goods within the state?

b) When Applicant selling the goods outside the state?

3. When the Applicant is operating under the Margin Scheme notified under Rule 32(5) of the Central Goods and Service Tax Rules, 2017 (“CGST Rules, 2017”) by selling the used lead acid batteries to manufacturers whether the goods when sold outside the state or when sold within the state of Rajasthan qualifies under the Margin Scheme.

Crux:  1. The used lead acid batteries qualify to be second hand goods. Accordingly, the Applicant dealer is entitled to operate under the Margin Scheme in respect of the used lead acid batteries.

2. The query raised by the applicant is not specified in Section 97(2) of CGST Act/RGST Act, 2017, therefore, no advance ruling is given.

3. The Rule 32(5) of the CGST Rules, 2017 which provides for Margin Scheme in case of intra-state supplies shall also be applicable in case of inter-state supplies. The Applicant is entitled to make inter-state supplies of used lead acid batteries while operating under the Margin Scheme.

Order

Summary
 

Rule 32 of CGST

Section 97 of CGST

Order dated 09/01/2019

Issue: Whether the input tax credit of Central Tax paid in Haryana be available to the applicant who is registered in Rajasthan State, whereby such tax is paid on inward supplies used for business of person registered in Rajasthan?"

Crux: Input tax credit of Central Tax paid in Haryana is not available to the applicant who is registered in state of Rajasthan.

Order

Summary

Order uphold by AAAR

Order dated 08/05/2019

Issues:- Whether the input tax credit of Central Tax paid in Haryana be available to the Applicant who is registered in Rajasthan State?
 
Crux:- AAAR uphold the ruling rendered by AAR in respect of ITC of the Central GST paid in Haryana, which has been held as “not admissible” to the Appellant. Thus, the Appeal filed by the appellant is not legally sustainable and hence is liable to be dismissed .

Order

Summary
 

Section 16 of CGST

Order dated 09/01/2019

Issue: a. What should be the place of business to be considered for the purpose of registration?
b. Since no billing is done from any other state other than Jaipur and even input services bills are billed at Jaipur thus the applicant is required to take registration at Jaipur only or at any other state?
c. Whether having a vacant lands on lease for parking of trailers/trucks at various cities for operational purpose requires registration at various cities when billing, control, registered office, head office and management is centralized located at Jaipur.

Crux: a. The applicant is providing services from his registered place of business i.e. Jaipur in the state of Rajasthan. Therefore place of business for the purpose of registration is Jaipur.

b. The registration under GST regime is applicable on place of supply of goods or services or both. As per the facts, the place of supply is from the state of Rajasthan, thus applicant is required to take registration at Jaipur, Rajasthan only.

c. The vacant land taken on lease by the applicant for parking of vehicles and drivers rest is outside the state of Rajasthan. The authority for advance ruling is created under SGST/UTGST Act and thus rulings are applicable within the particular state only, hence question relating to registration of vacant lands taken on lease in various states outside Rajasthan is out of purview of the authority and thus no ruling is given on this aspect.

Order

Summary

Order uphold by AAAR

Order dated 20/11/2019

Issues:- (i) Does Transportation by own vehicles on the basis of Invoice(s) and e-way bill without issuing the consignment note by the appellant transporter will covered under exempted supply/ non GST supply.
(ii) Does Rule 42 of the CGST Rules 2017 will also apply in case where there is GST and non GST supplies and there is a common consumption of input and input services?
 
Crux:-  AAAR held that the services to be provided by the appellant are leviable to GST, as specified under Notification No. 11/2017-Central Tax (Rate) dated 28.06.2017 (as amended) read with exemption Notifications, if applicable, as per the exact nature of services to be provided by them. The appeal of appellant is rejected.

Order

Summary

Section 2 of CGST

Order dated 18/12/2018

Issue: “Tax rate on “Air dryer complete with final filter for used in breaking system of locomotive supplied to Railway” as per order attached given by Western Railway.”

Crux: The ‘Air Dryer complete with final filter for used in breaking system of locomotive’ has been rightly classified by the supplier under Chapter 8421 of GST Tariff Act 2017 which attracts GST @18% (CGST 9% + SGST 9% ).

Order

Summary
 

Circular No. 30/4/2018-GST

Notification No. 1/2017 Central Tax (Rate)

Order dated 19/11/2018

Issue:- Determination of applicable GST rate on supply of non-air conditioned vehicles on hire to Indian Army.

Crux: The Service provided by the applicant is not exempted under Notification No. 12/2017 dated 28.06.2017 as this Service does not fall under ‘non-airconditioned contract carriage’ category. The service provided is ‘rent a cab’ Service, which attracts IGST @ 5% (CGST @ 2.5% and SGST @ 2.5%) provided that credit of input tax charged on goods and services used in supplying the service, other than the input tax credit of input service in the same line of business (i.e. service procured from another service provider of tran sporting passengers in a motor vehicle or renting of a motor vehicle) has not been taken Or IGST @ 12% (CGST @ 6% and SGST @ 6%) if input tax credit is availed.

Order

Summary
 

Notification No. 11/2017 Central Tax (Rate)

Notification No. 12/2017 Central Tax (Rate)

Order dated 19/11/2018

Issue: Whether ITC of IGST paid on ‘bill to ship to’ model admissible to the applicant?

Crux: The applicant is eligible to claim the input tax credit (ITC) of IGST paid on ‘bill to ship to’ model as per the relevant provisions of Section 16 and 17 of Chapter V of CGST Act, 2017.

Order

Summary
 

Section 16 of CGST

Section 17 of CGST

Order dated 02/11/2018

Issues:
1. Whether the supply from M/s. SSPL to M/s. X on a “Bill to Ship to” mode as per provisions of Section 10(1)(b) of IGST Act, 2017 is permissible?

2. Whether as per the press note dated 23.04.2018 issued in relation to the transactions of supply u/s. 10(l)(b) of the IGST Act, 2017 the use of E-way bill in the aforesaid facts in the column of “ship to” of ultimate customer M/s. X is permissible ?

3. Whether in the aforesaid facts the provisions of Section 15 of the CGST Act, 2017 read with Rule 28 of CGST Rules, 2017 and in particular the second proviso to Rule 28 would apply for the value of supply for the transactions between M/s. SSPL and M/s. RSE and thereafter M/s. RSE and M/s. Goyal as all are registered persons and the transactions are business to business transactions with availability of full Input Tax Credit?

4. Whether the transactions between M/s. Goyal and the ultimate customer M/s. X would be covered by the provisions of Section 15 for the value of taxable supply as they are not related persons?

Crux:
1. The supply from the Applicant to final customer on a “Bill to Ship to” mode as per provisions of Section 10(1) (b) of IGST Act, 2017 is permissible.

2. The applicant can issue an e-way bill in which the ‘bill to’ will be mentioned in the name of M/s RSE/RPG whereas ‘ship to’ would be in the name of final customer.

3. In the aforesaid facts the provisions of Section 15 of the CGST Act, 2017 read with Rule 28 of CGST Rules, 2017 and in particular the second proviso to Rule 28 would apply for the value of supply for the transactions between applicant and M/s. RSE with availability of full Input Tax Credit.

4. The transactions between M/s Goyal and the ultimate customer would be covered under the provisions of Section 15 as both are unrelated persons, (as declared in submissions by the applicant).

Order

Summary
 

Rule 28 of CGST

Section 10 of IGST

 

Section 15 of CGST

Order dated 29/10/2018

Issues:- Whether the activity of O & M of Fluoride control project on ESCO Model and O & M work is supply of goods or supply of services and what shall be the rate of GST on it?

Crux:- In the given contract, the activity of O & M of Fluoride Control Project on ESCO Model and O &M work by the applicant is a works contract service being undertaken for a Government Department. If the value of supplied goods under this contract is below 25% of the total value of the composite supply, then the rate of tax would be Nil. Further, if in the duration of contract the applicant crosses the benchmark of 25% value of goods then the rate of tax will shift from Nil to 12%.

Order

Summary
 

Notification No. 11/2017 Central Tax (Rate)

Notification No. 12/2017 Central Tax (Rate)

Order dated 12/10/2018

Issues:- 1. Whether the maintenance services rendered on customers’ equipment under the two agreements i.e. comprehensive maintenance services agreement and supply of parts and services agreement which also includes supply and replacement of spare parts should be classified as ‘composite supply’ under Section 2(30) of Central Goods and Service tax Act, 2017 (CGST Act) and Rajasthan State Goods and Service Tax Act, 2017 (RJ SGST Act) or as mixed supply under Section 2(74) of GST Act?

2. In case the said agreements are considered as composite supply, what is the principal supply between goods and services?

3. In case services are considered as the principal supply, what tax rate should be applicable?

4. In respect of the said agreements, what shall be the relevant place of supply and type of tax which needs to be discharged? (i.e. CGST & SGST or IGST).

Crux:- 1. The activities performed under the ‘Comprehensive Maintenance Contract’ are to be treated as a composite supply of services and the activities performed under ‘Equipment Parts Supply and Services Agreement’ are to be treated as Mixed Supply.

2. In respect of the activities performed under ‘Comprehensive Maintenance Contract’, the supply of Operation & Maintenance services is the principal supply and the supply of other services are ancillary to such principal supply.

3. The service code for Maintenance and repair services of commercial and industrial machinery is 9987171 and the prescribed rate of GST is 18% (CGST @ 9% of the taxable value, SGST @ 9% of the taxable value) or IGST @ 18% of the taxable value. For the supply of mixed services, the applicant is liable to pay the highest rate of tax as per Section 8(b) of the CGST Act, 2017.

4. As the query raised by the applicant does not fall in the categories mentioned under Section 97(2) of CGST/SGST Act, 2017, hence the same is accordingly disposed off.

Order

Summary

Order uphold by AAAR

Order dated 18/03/2019

Issues:- 1. Whether the maintenance services rendered on customers' equipment under the two agreements i.e. comprehensive maintenance services agreement and supply of parts and services agreement which also includes supply and replacement of spare parts should be classified as 'composite supply' under Section 2(30) of Central Goods and Service tax Act, 2017 (CGST Act) and Rajasthan State Goods and Service Tax Act, 2017 (RJ SGST Act) or as mixed supply under Section 2(74) of GST Act'
2. In case the said agreements are considered as composite supply, what is the principal supply between goods and services.
3. In case services are considered as the principal supply, what tax rate should be applicable.
4. In respect of the said agreements, what shall be the relevant place of supply and type of tax which needs to be discharged' (i.e. CGST & SGST or IGST).

Crux:-AAAR uphold the Advance Ruling rendered by AAR. Thus, the activities performed by the Appellant in Agreement-2(i.e.'Equipment Parts Supply and Services Agreement) will fall under the Mixed Supply, as supplies of goods and services or both, or any combination thereof, are not naturally bundled and supplied in conjunction with each other in the ordinary course of business, one of which is a principal supply;

Order

Summary
 

Section 8 of CGST

Notification No. 11/2017 Central Tax (Rate)

Order dated 13/10/2018

Issues:- 1. The amount passed on to the customer by DCA on account of the early payment before credit period allowed by principal. Whether any “supply” arises in this transaction? Who is the supplier and receiver in the transaction?

2. If yes, what will be the classification of such Supply and its HSN/SAC Code and applicable GST Rate?

3. If the transaction is termed as “Supply”, whether the aforementioned supply is exempted from Goods and Service Tax under CGST Notification No. 12/2017 Central Tax (Rate) dated 28th June 2017, applicable w.e.f. 01.07.2017, as amended from time to time and corresponding Raj. GST Notification issued by Government of Rajasthan or any other notifications/rules under GST law?

4. If GST is charged by the customer on invoice for such transaction, Whether the dealer/DCA can take credit of the ITC of the GST charged on such supply considering the fact that dealer has outward supply as (i) Commission Agent Service on which GST is paid @ 18% (ii) the Finance in terms of Loan and advance on which interest income arises which is exempt under CGST Notification No. 12/2017 Central Tax (Rate) dated 28th June 2017, applicable w.e.f. 01.07.2017, as amended from time to time and corresponding Raj. GST Notification issued by Government of Rajasthan?

Crux:- 1. The additional bonus passed on by the applicant (DCA) to the customer, is not in nature of a supply in accordance with GST Act, 2017.

2. & 3. Not applicable since the transaction is not a supply.

4. Since, the said transaction is not a supply by the customer; invoice cannot be raised/issued by the customer and if any amount passes on to the DCA in any manner, the DCA is not entitled to take ITC of the said amount passed on by the customer.

Order

Summary
 

Order dated 24/09/2018

Issues:- Applicable GST Rate on supply of Solar Power Generating System.

Crux:- The nature of work is of Erection, Procurement and Commissioning of Solar Generating System which falls under the ambit “Works Contract Services” (SAC 9954) of Notification no. 11/2017 Central Tax (Rate) dated 28 June, 2017 and shall attract 18% rate of tax under IGST Act, or 9% each under the CGST and SGST Acts, aggregating to 18%.

Order

Summary
 

Notification No. 01/2017 Central Tax (Rate)

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 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)

AR of Maharashtra
Swati Dubey
Summary

 

Order dated 15/09/2018

Issues:- Whether EPC contract for set up of solar power generating system be considered as a composite supply with PV modules being the principal supply and be taxed at a rate of 5% (i.e. tax rate applicable on the P.V. modules)?

Crux:- The scope of work in respect of “Turnkey Composite EPC Contract” includes designing, planning civil works, procurement of good, erection, testing and commissioning. Accordingly, “Turnkey EPC Contract” is not covered under Entry 234 of Schedule 1 of the  Notification no. 1/2017 – Central Tax (Rate) and falls under the ambit “ Works Contract Services” ( SAC 9954 ) of Notification 11/2017 Central Tax (Rate) dated 28 June, 2017 and attracts 18% rate of tax under IGST Act, or 9% each under the CGST and SGST Acts.

Order

Summary

Notification No. 01/2017 Central Tax (Rate)

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

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

AR of Andhra Pradesh
Dinesh Kumar Agrawal
(Summary)

AR of Maharashtra
Swati Dubey
Summary

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

Order dated 15/09/2018

Issues:- 1. Whether they are eligible to Claim full ITC pertaining to procurement of goods and services for construction of the project during the Construction Period, as the entire revenue received during the said period is subject to GST?

2. Whether they are eligible to Claim ITCs pertaining to procurement of goods and services during the 0 & M period after reversal of ITC as per Section 17(2) of the CGST Act, 2017 read with Rule 42 of the CGST Rule, 2017 as Annuity Payment received during the said period is exempt whereas 0 & M payments received are subject to GST?

Crux:- 1. The Applicant is rendering taxable services during the construction, of roads which is liable to tax; hence they are entitled to claim full ITC under.the provisions of section 16(1) of the CGST Act. 2017.

2. The Applicant is entitled to claim ITC on supplies of goods and services or both procured for use in outward supply of 0 & M service purpose, as they are paying GST on 100 percent of the amount received on account of 0 & M of the Project.

Order

Summary

Order modified by AAAR

Order dated 13/02/2019

Issues:- (1) claim full ITC pertaining to procurement of goods and services for construction of the project during the Construction Period, as the entire revenue received during the said period is subject to GST; and
(2) claim ITC pertaining to procurement of goods and services during the O & M period after reversal of ITC as per Section 17(2) of the Central Goods and Services Tax Act, 2017 read with Rule 42 of the Central Goods and Services Tax Rule, 2017 as Annuity Payment received during the said period is exempt .

Crux:-(1). Annuity payments are exempted by virtue of Entry No. 23A of the notification No. 12/2017-Central Tax (Rate) dated 28.06.2017. However, only 50% ITC of the GST paid on the Input and Input service used in the construction phase is available to the Appellant subject to the provisions of Section 17(5) of the Central GST Act, 2017.

(2). Full ITC of the GST paid on the inputs and input services used in the O&M phase is available to the Appellant subject to the provisions of Section 17(5) of the Central GST Act, 2017.

Order

Summary
 

Section 16 of CGST

Section 17 of CGST

Order dated 15/09/2018

Issues:- Whether charges received by the cold storage for providing service of storing of eggs, which is produce of rearing of animals/poultry farming in cold storage is exempted from payment of GST in terms of S. no. 24 of Notification No. 11/2017-CT (Rate) and S. no. 54 of Notification no. 12/2017-CT (Rate)?

Crux:- The charges received by the applicant for providing service of storing of “fresh eggs” in shell on which no further processing is done, which are produce of rearing of animals/poultry farming are covered under definition of “agricultural produce and are exempted from payment of GST in terms of entry No. 24 of Notification No. 11/2017-CT (Rate) and entry S. No. 54 of Notification no. 12/2017-CT (Rate) dated 28.06.2016.

Order

Summary
 

Notification No. 11/2017 Central Tax (Rate)

Notification No. 12/2017 Central Tax (Rate)

AR of Andhra Pradesh
Sardar Mal Cold Storage & Ice Factory
Summary

AR of Gujrat
M/s. Guru Cold Storage Private Limited
Summary

Order dated 01/09/2018

Issues:- 1. Classification and applicable rate of GST on Ramming Mass used in lining of induction furnace.

2. Classification and applicable rate of GST on crushed quartz stones used in lining of furnace through claimed as not containing Boric Acid.

Crux:- 1. Ramming Mass which is a Refractory Material, is classifiable under HSN code 3816 and would attract 18% rate of tax under GST (9% CGST + 9% SGST).

2. Quartz powder obtained by crushing Quartz stones falls under HSN code 2806 and would attract 5% rate of tax under GST (2.5% CGST + 2.5% SGST) .

Order

Summary
 

Notification No. 01/2017 Central Tax (Rate)

Order dated 25/08/2018

Issues:-(a) Whether in the case of import of goods on CIF (COST, INSURANCE AND FREIGHT) basis, the Applicant (Importer) is liable to pay GST on the component of Ocean freight paid by the foreign supplier to the shipping company, as consideration for availing the service of transportation of goods by sea provided by the foreign shipping entity?

(b) Whether in the case of import of goods on FOB (Free on board) basis the Applicant (Importer), for the purpose of determination of value of goods for the payment of IGST on import of goods is required to exclude the value of the component of Ocean freight paid by the Applicant (importer) to the foreign shipping entity, on which already GST is paid by the applicant (importer) being the service recipient in order to avoid double taxation?

Crux:- (a) The applicant is liable to pay IGST on transportation of goods by vessel under Reverse Charge Mechanism (RCM) under Notification No. 10/2017- Integrated Tax (Rate) dated 28.06.2017.

(b) Regarding exclusion of any component of expenditure upon imported goods (Ocean freight) is regarding determining their value at the time of import, the same falls beyond the purview of Section 97 of CGST/RGST Act, 2017.

Order

Summary
 

Notification No. 10/2017 Integrated Tax (Rate)

AR of Uttrakhand
M/s Bahl Paper Mills Ltd.
Summary

Order dated 25/08/2018

Issues:-1. Whether service provided by M/s PDCOR Ltd is correctly classified under SAC Code 9983?

2. Whether Jaipur Development Authority falls under the definition of Local Authority or Governmental Authority or Government Entity?

3. Whether the aforementioned services being provided by M/s PDCOR Ltd. in the above case are exempted from Goods and Service Tax under the serial number 3 of CGST Notification No. 12/2017 Central Tax (Rate) dated 28th June 2017, applicable w.e.f  01.07.2017, as amended from time to time and corresponding Raj. GST Notification issued by Government of Rajasthan?

Crux:- 1. The PMC Services provided by M/s PDCOR Ltd. to the JDA in the “Project Management Consulting Services (PMCs) for Rejuvenation of Amanishah Nallah (Dravyavati River), Jaipur” are correctly classified under SAC Code 9983.

2. Jaipur Development Authority (JDA) is a Governmental Authority.

3. The PMC Services provided are pure services hence covered under SI. No.3 of  Notification 12 /2017 Central Tax (Rate) dated 28/06/2017 (Notification No. F.12 (56) FD/Tax/2017-Pt-I-50 Dated 29/09/2017 issued by the Government of Rajasthan.) and hence exempt from GST.

Order

Summary
 

Notification No. 12/2017 Central Tax (Rate)

Order dated 18/08/2018

Issues:-Classification parts supplied as parts of complete sprinkler or drip irrigation system and also as spares under Entry 195B of Schedule II of Notification No. 01/2017?

Crux:- As per entry No. 195B of the schedule II of Notification No. 1/2017 – CT (Rate) Laterals of sprinklers such as clamps, bends, tee, coupler, bush, foot button, latch, clamp, riser pipe, socket etc. are not covered to attract GST 12% (CGST 6% + SGST 6%) but instead will attract GST at 18% (CGST 9% + SGST 9%). Laterals of drip irrigation system will attract GST 12% (CGST 6% + SGST 6%).

Order

Summary
 

Notification No. 01/2017 Central Tax (Rate)

Order dated 18/08/2018

Issues:-1. Whether Supply, commissioning, installation and maintenance of Solar Water Pumping System would be taxable at the rate of 5% considering it as a composite supply where the principle supply being that of goods i.e. supply of Solar Power generating system having HSN Code 84 or 85?

2. Whether separate bills can be raised by the Applicant with respect to Supply and Goods and Supply of Services Purely in respect of the contract of the Applicant with RHDS enclosed herewith?

3. Will the said transaction be classified as a “Works Contract” and taxable at the rate of 18% being Supply of Services?

Crux:- 1. “Supply, installation, commissioning and maintenance of Solar Water Pumping Systems” falls under the purview of Works Contract as per Section 2(119) of GST Act and not covered under Entry 234 of Schedule I of the Notification no. 1/2017 – Central Tax (Rate), dated 28lh of June, 2017 under HSN code 84 or 85.

2. As per terms and conditions of agreement, it is a single contract of supply, installation, commissioning and maintenance of Solar Water Pumping Systems and hence cannot be split in two separate contracts. Therefore separate bills for supply of goods and supply of services cannot be raised.

3. The contract for “supply, installation, commissioning and maintenance of Solar Water Pumping Systems” falls under the ambit of ” Works Contract Services” which comes under the purview of Works Contract as per Section 2(119) of CGST Act and attracts 18% rate of tax under IGST Act, or 9% each under the CGST and SGST Acts, aggregating to 18%.

Order

Summary
 

Notification No. 01/2017 Central Tax (Rate)

Notification No. 11/2017 Central Tax (Rate)

Order dated 01/08/2018

Issues:-Whether the power cables supplied would be covered under the scope of SI. No. 1 of Notification No. 03/2017-CT?

Crux:- “Electrical Cables” do not fall under Entry no. 24 of list as ‘material’, ‘accessories’, ‘consumables’, and/or ‘stores’ of SI. No. 1 of Notification No. 03/2017-Central Tax (Rate)

Order

Summary
 

Notification No. 03/2017 Central Tax (Rate)

Order dated 01/07/2018

Issues:-Whether Supply of Solar Power Plants is considered as supply of goods or supply of services?

Crux:- The transaction for EPC Contract for the Solar Power Plant which includes engineering, design, procurement, supply, development, testing and commissioning is a works contract” in terms of section 2(119) of the GST Act as supply of services.
The contract for EPC of Solar Power Plant falls under the ambit ” Works Contract Services” ( SAC 9954 ) of Notification no. 11/2017 Central Tax (Rate) dated 28 June, 2017 and attracts 18% rate of tax under IGST Act, or 9% each under the CGST and SGST Acts.

Order

Summary

Order upheld by AAAR

Order dated 29/11/2018

Issues:-(i) Whether contract for supply of/construction of a Solar Power Plant, wherein both goods and services are supplied, can be construed to be a composite supply in terms of Section 2(30) of the Central Goods and Services Tax Act, 2017 as claimed by the appellant or the same is Works Contract Services as per the Ruling made by the AAR.

(ii) Whether ‘Solar Power Generating System’ is a movable or immovable property

(iii) If the transaction is treated as a ‘composite supply’, whether the Principal Supply in such case can be said to be ‘solar power generating system’ which is taxable at 5% GST?

Crux:- The said Turnkey EPC contract is a ‘composite supply’ under section 2(30) of the CGST Act, 2017.The said composite supply falls within the definition of Works contract under section 2(119) of the CGST Act, 2017 (SAC9954) and attracts 18% rate of tax (either 9% each under CGST Act and RGST Act or 18% under IGST Act)

In view of holding the transaction as a ‘Works contract’ and Para 6 of SCHEDULE II of CGST Act treating ‘Works contracts’ as supply of ‘services’ , there arises no occasion to go into the issue of ‘ Principal supply’.

Order

Summary
 

Notification No. 11/2017 Central Tax (Rate)

AR of Maharashtra
Giriraj Renewables private Limited
(Summary)

AR of Maharashtra
Fermi Solar Farms private Limited
(Summary)

AR of Andhra Pradesh
Dinesh Kumar Agrawal
(Summary)

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

Order dated 01/07/2018

Issues:- Whether the applicant is required to take registration in Rajasthan where he is providing service relating to construction of cold storage?

Crux:-While supplying services if the supplier of services (i.e. applicant who in the given case is a Works Contractor and is registered in State of Gujarat) has any place of business/office in the State of Rajasthan i.e. has a fixed establishment for operation in State of Rajasthan (place where the services are to be provided) then he is required to get himself registered in State of Rajasthan.

Order

Summary
 

Section 22 of CGST

Order dated 23/06/2018

Issues:- 1. Whether the activity of the applicant is covered by Entry S. No. 24 (i)(i)(c) or S. No. 24(i)(iii) of Notification No. 11/2017 Central tax (Rate) dated 28/06/2017 attracting NIL rate of tax .

2. Whether the activity of the applicant is covered by Entry S. No. 54(c) or Entry No. 55 of Notification No. 12/2017 Central tax (Rate) dated 28/06/2017 attracting NIL rate of tax.

Crux:- The activity of the applicant i.e. M/s Rara Udhyog, Jaipur is not covered by Entry S. No. 24 (i)(i)(c) or S. No. 24(i)(iii) of Notification No. 11/2017 Central tax (Rate) dated 28/06/2017 AND Entry S. No. 54(c) or Entry No. 55 of Notification No. 12/2017 Central tax (Rate) dated 28/06/2017 & will not attract NIL rate of tax.

Order

Summary

Order upheld by AAAR

Order dated 31/10/2018

Issues:- Whether the activity of cleaning of the above produce is exempted under the Entry S. No. 24 (i)(i)(c) and 24(i)(iii) of Notification No. 11/2017 Central tax (Rate) dated 28/06/2017 and Entry S. No. 54(c) and 55 of Notification No 12/2017 -Central Tax (Rate) dated 28/6/17?"

Crux:-AAAR upheld the order of AAR that the activity of the Appellant is not covered by Entry S. No. 24 (i)(i)(c) or S. No. 24(i)(iii) of Notification No. 11/2017 Central tax (Rate) dated 28/06/2017 AND Entry S. No. 54(c) or Entry No. 55 of Notification No 12/2017 -Central Tax (Rate) dated 28/6/17.

Order

Summary
 

Notification No. 11/2017 Central Tax (Rate)

Notification No. 12/2017 Central Tax (Rate)

Order dated 16/06/2018

Issues:-

a) Whether the Bio Fertilizer covered under the definition of Organic Manure (HSN code 3101)?

b) What is the rate of GST applicable on Bio Fertilizer if it is not covered under Organic Manure (HSN Code: 3101)?

Crux:-

a) Bio-Fertilizers are made of animals (micro-organisms) and hence covered within the standard description of the HSN Code 3101.

b) Bio Fertilizer or Organic Manure other than those put up in Unit Container and bearing a brand name; will be covered under Schedule I of rate of GST on Goods and attracts NIL rate of duty & if put up in Unit Container and bearing a brand name, will be taxable under GST @ 5%.

Order

Summary
 

Notification No. 01/2017 Central Tax (Rate)

Order dated 16/06/2018

Issues:- a) Whether the reimbursement of expenses and salary paid by M/s Habufa Meubelen B.V.(HO) to the liaison office established in India is liable to GST as supply of services, especially when no consideration for any services is charged/ paid?

b) Whether the applicant i.e. the Liaison Office is required to get registered under GST?

c) If it is assumed that the reimbursement of expenses and salary claimed by liaison office is a consideration towards a service, then what will be the place of supply of such service?

Crux:- a) If the liaison office in India does not render any consultancy or other services directly/indirectly, with or without any consideration and the liaison office does not have significant commitment powers ,except those which are required for normal functioning of the office, on behalf of Head Office, then the reimbursement of expenses and salary paid by M/s Habufa Meubelen B.V. (HO) to the Liaison Office, established in India, is not liable to GST

b) M/s Habufa Meubelen B.V. Jaipur, is not required to get itself registered under GST as there are no taxable supplies made by the Liaison office.

c) HO and Liaison Office cannot be treated as separate persons, there cannot be any flow of services between them as one cannot provide service to self and therefore, the reimbursement of expenses made by the HO cannot be treated as a consideration towards any service.

Order

Summary
 

Section 7 of CGST

Section 22 of CGST

Order dated 11/06/2018

Issues:- a) Whether the mentioned goods which comes for storage will come under the definition of agricultural produce or not?

b) Whether the supply of Cold Storage services by the applicant firm to various products as mentioned herein below attracts Nil rate of duty or not as per Notification No. 11/2017 Central tax (Rate) dated 28/06/2017?

Crux:-

a) Goods mentioned under Group A fall under the definition of Agricultural Produce in terms of the aforesaid notification and so supply of cold storage service in relation to these is exempt from the levy of GST. However if any processing is done on these products as is not usually done by a cultivator or producer at farm level , then these would fall outside the definition of agricultural produce as given in the aforesaid Notification and in that case supply of cold storage service in relation to these would remain chargeable to GST.

b) Goods mentioned under Group B to G are not Agricultural produce in terms of the aforesaid notification and so the supply of cold storage service in relation to these would remain chargeable to GST.

Order

Summary

Order upheld by AAAR

Order dated 15/10/2018

Issues:-Whether the goods mentioned in Group A to Group G which comes for storage will come under the definition of Agricultural produce or not and whether the supply of Cold Storage services by the appellant to the goods attracts Nil rate of tax or not as per Notification No. 11/2017 Central tax (Rate) dated 28/06/2017 and Notification No 12/2017 -Central Tax (Rate) dated 28/06/2017?"

Crux:-AAAR doesn’t find any reason to interfere with the Ruling given by the Authority for Advance Ruling. Hence as ruled AAR Goods mentioned under Group A fall under the definition of Agricultural Produce in terms of the aforesaid notification and so supply of cold storage service in relation to these is exempt from the levy of GST. However if any processing is done on these products as is not usually done by a cultivator or producer at farm level , then these would fall outside the definition of agricultural produce as given in the aforesaid Notification and in that case supply of cold storage service in relation to these would remain chargeable to GST.
Goods mentioned under Group B to G are not Agricultural produce in terms of the aforesaid notification and so the supply of cold storage service in relation to these would remain chargeable to GST.

Order

Summary
 

Notification No. 11/2017 Central Tax (Rate)

Notification No. 12/2017 Central Tax (Rate)

AR of Gujarat
Guru Cold Storage Private Limited
(Summary)

AR of Rajasthan
M/s Shubhlaxmi Cold Storage
Summary

Order dated 11/05/2018

Issues:- Whether it is eligible to avail the exemption from levy of GST under entry 25 of Notification no. 12/2017- Central Tax (Rate) with respect to non tariff charges recovered by TPADL from customers'

Crux:- The services provided by M/s TPADL with respect to non-tariff charges recovered from their customers are not eligible for exemption as clarified vide Circular no. 34/8/2018 and is liable to pay tax on the aforesaid recovery made from their customers.

Order

Summary

Order by AAAR

Order dated 18/10/2018

Issues:- 1. whether the delayed payment charges collected from the consumers for delay in payment of consideration for supply of electricity is liable to GST in terms of Section 15(2) of the CGST Act, 2017; and
2. whether the cheque dishonor fee collected by the appellants is liable to GST .

Crux:- AAAR ruled that no GST is chargeable on the delayed payment charges collected from the consumers for delay in payment of consideration for supply of electricity . While GST is chargeable on the cheque dishonor charges collected ( by whatever name) from the consumers.

Order

Summary
 

Notification No. 12/2017 Central Tax (Rate)

Circular No. 34/8/2018-GST

Order dated 27/04/2018

Issues:-

a) Whether  Jaipur Development Authority is covered under the status of Government Authority/Entity or not?

b) Whether enhancement of utility of  Dravyawati river, construction of sewage treatment plants, laying of pipelines, constructions of interception chambers etc provided under the contract are covered under Sl. No. 3(vi)(a) of Notification No. 11/2017-Central Tax (Rate) dt. 28.06.17 amended with Notification No. 24/2017 - Central Tax (Rate) dt. 21.09.17 and further amended with Notification No. 31/2017 - Central Tax (Rate) dt. 13.10.17?

c) Determination of Rate of GST applicable for the project?

d) Determination of Rate of GST applicable on subcontractor leg?

Crux:-  Services provided by M/S TPL are covered under s.no. 3(vi)(a) of Notification no. 11/2017- Central Tax (Rate) amended vide Notification no. 24/2017- Central Tax (Rate) and further amended vide Notification no. 31/2017- Central Tax (Rate) and GST @ 12% is applicable on the services provided under said contract. The same rate is also applicable to the sub contractor leg as inserted in Notification no. 01/2018- Central Tax (Rate).

Order

Summary

Notification No. 11/2017 Central Tax (Rate)