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M/s Autometers Alliance Pvt. Ltd , v/s Ajay Kumar Misra , Dinesh Kumar Verma, Joint Commissioner

Order dated: 11/02/2019

Issues: What is the classification of Vigilance Control Device (VCD), Diagnostic Teiminal (DT), and Master Controller System (MCS), supplied by the applicant ?

Crux:- Vigilance Control Device (VCD), Diagnostic Terminal (DT) & Master Controller System (MCS), would fall in Code 8530 10 10 of Customs Tariff Act, 1975.

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M/s Ajay Kumar Singh , v/s Ajay Kumar Misra , Dinesh Kumar Verma, Joint Commissioner

Order dated: 07/07/2020

Issues: 1. What shall be the classification of service provided by the Government of Uttar Pradesh to M/s Ajay Kumar Singh in accordance with the Notification no. 11/2017-CT (Rate) dated 28.06.2017.
2. Whether the said service can be classified under Chapter number 9973 as Licensing services for the right to use minerals including its exploration and evolution� or any other service under the said chapter.
3. What shall be the rate of GST on given services provided by the Government of Uttar Pradesh to M/s Ajay Kumar Singh for which royalty is being paid.

Crux:- The service under the question would be classifiable under Licensing services for the right to use minerals including its exploration and evaluation� at Serial No. 257, Heading 9973, Group 99733, sub heading 997337 of annexure: Scheme of Classification of Service� to the Notification No. 11/2017-C.T. (Rate) dated 28.06.2017 (as amended) and attracts 18% GST (9% CGST + 9 % SGST).

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Order dated 11/09/2019

Issue: (i) Whether amount recovered from the employees towards parental insurance premium payable to the insurance company would be deemed as "Supply of Service" by the applicant to its employees?

ii) If the first question is answered in affirmative, whether the value of aforesaid supply would be NIL, being provided in the capacity of a "Pure Agent"' If valuation is not accepted as NIL, what would be the value of such supply'

(iii) If GST is payable on the such amount recovered from the employees, whether the proportionate GST paid by the applicant to insurance company towards parental insurance would be admissible as input tax credit against supply of insurance services for employees' parents'

Crux: (i) The amount recovered from the employees towards parental insurance premium payable to the insurance company would not be deemed as "Supply of Service" by the applicant to its employees

(ii) As the answer of question no. I is in negative this question doesn't need answer.

(iii) The amount recovered from the employees towards parental insurance premium payable to the insurance company would  not amounts as "Supply of Service" by the applicant to its employees

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 Section 7(2) CGST Act, 2017

Order dated 11/09/2019

Issue: Whether the GST is applicable on the accounting entry made for the purpose of Indian accounting requirements in the books of account of Project office for salary cost of Expat employees?"

Crux: The service provided by the expat employees to the project office fall under the category of "services by an employee to the employer in the course of or in relation to his employment". Accordingly, no GST is leviable on the salary paid to the expat employees and reflected in the books of account of the project office.

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Schedule III of CGST

Order dated 06/09/2019

Issue: (i) What shall be the classification of the above product manufactured and proposed to be supplied by the applicant?
(ii) What shall be the rate of GST on the said product in terms of the above classification?

Crux: The product 'Instant Tea Whitener' as described in the application will merit classification under Chapter Heading 0402 of the GST Tariff and would be chargeable to GST at applicable rate under the said tariff entry, presently read with Notification No. 01/2017-lntegrated Tax (Rate), dated 28-6-2017 (Sl. No. 08 of Schedule-I).

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 Notification No. 01/2017 Integrated Tax (Rate)

Order dated 06/09/2019

Issue: (i) Whether the composite supply of works contract provided by the applicant to NHAI shall be classified under entry (vi) to serial no. 3 of the Notification no. 11/2017-CT(Rate) dated 28th June, 2017 read with  the UPGST Rate Notification liable to effective rate of GST @ 12% including CGST and UPGST?

(ii) Whether the composite supply of works contract provided by the applicant to NHAI shall also be classified under Entry (iv) to Serial No. 3 of the CGST Rate Notification read with the UPGST Rate Notification liable to effective rate of GST @ 12% including CGST and UPGST'?

(iii) Whether the rate of GST with respect to the services rendered by the sub-contractor to the main contractor i.e. the applicant would be applicable @ 12% in view of Entry (vi) and (iv) of the CGST Rate Notification read with the UPGST Rate Notification or @ 18%'?


Crux: 1.The composite supply of works contract provided the applicant to NHAI shall not be classified under entry(vi) to serial no.3 of the CGST Rate Notification read with UPGST Rate Notification liable to effective rate of GST @ 12% including CGST and UPGST?

2.The installation of ITS (Intelligent Transport System) is part and parcel of the construction of road transportation for use by general public and the contention of the applicant that the supply made by them stands covered under Entry (iv) of Serial No. 3 of the CGST Rate Notification, liable to effective rate of GST @ 12% including CGST and SGST, is correct.

3.No ruling can be issued on this as the question is outside the preview of the Advance Ruling.

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   Notification No. 11/2017 Central Tax (Rate)

Order dated 05/08/2019

Issue: (i) Whether the Deposit Work undertaken by Applicant is an integral part of supply of services of transmission or distribution of electricity'

(ii) Whether the Deposit Work undertaken by Applicant is ancillary to the principal supply of transmission or distribution of electricity'

(iii) Whether the exemption given under Entry No. 25 of the exemption notification for services by wav of transmission or distribution of electricity by an electricity transmission or distribution utility will be applicable on Applicant'

(iv) Whether ITC is available to the applicant in undertaking "Deposit Works" i.e. creating infrastructure for electricity transmission'

Crux: (i) The deposit work undertaken by applicant is not an integral part of supply of services of transmission or distribution of electricity.

(ii) The deposit work undertaken by applicant is not ancillary to the principal supply of transmission or distribution of electricity.

(iii) The exemption given under entry no.25 of the exemption notification for services by way of transmission or distribution of electricity by an electricity transmission or distribution utility will not be applicable on applicant.

(iv) Not eligible to claim Input Tax Credit.

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   Notification No. 12/2017 Central Tax (Rate)

Order dated 05/08/2019

Issue: (i) What shall be the present applicable CGST & SGST tax rate on their final product i.e., "Namkeen" duly packed & sealed in printed pouches?

(ii) Whether their proposed plan to sell the said final product on payment of tax @ 5% is proper/ legal or not?

Crux: (i) The applicable CGST & SGST tax rate on the final product i.e. "Namkeen" duly packed & sealed in printed pouches will be 12% GST (i.e. 6% CGST + 6% SGST).

(ii) It was held that if the applicant voluntarily forego the enforceable right to such brand name subject to fulfillment of the condition (a) in Annexure-I of the Notification 28/2017-Central Tax (Rate), dated 22-9-2017, in that case proposed plan to sell the said final product on payment of tax @ 5% will be proper/ legal.

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  Notification No. 01/2017 Integrated Tax (Rate)

Issue: (a) Whether they are correct in their classification of the Filter Elements & Air Filter Assembly mentioned above as parts for Diesel Electric Locomotives for Indian Railways under Tariff Heading - 8607 in GST regime or not?
(b) What will be applicable Tax Rate under the GST Tariff/Act?

Crux: 1. Yes, the correct classification of the Filter Elements & Air Filter Assembly mentioned in application as parts for Diesel Electric Locomotives for Indian Railways, manufactured as per RDSO specifications and design will be under Tariff Heading 8607.

2. GST rate as applicable to Customs Tariff Heading No. 8607 prescribed under Notification no. 1/2017-Central Tax (Rate), dated 28-6-2017 issued under the CGST Act, 2017 is to be leviable on the aforesaid items, i.e., 5% (2.5% SGST + 2.5% CGST).

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Order dated 11/03/2019

Issue: (a) Whether activity of printing of question papers on behalf of educational institutions can be classified as activity of supply of goods or supply of services?
(b) Whether GST is to be charged on such supply and, if so, at what rate and under what HSN or SAC code is the GST to be charged?

Crux:  1. The activity of printing of question papers by the applicant is activity of supply of services classifiable under Heading 9989 of the scheme of classification of services.

2. The benefit of serial no. 66 of Notification no. 12/2017-Central Tax (Rate) is admissible only in case where service is provided to an educational institution (as defined in clause (y) of Paragraph 2 of the Notification no. 12/2017-Central Tax (Rate). The services of printing of question paper, supplied by the applicant to other than 'educational institutions' will be covered by serial no. 27(i) of Notification no. 11/2017-Central Tax (Rate), as amended, and will attract GST @ 12% (CGST 6% + SGST 6% or IGST 12%).

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 Notification No. 12/2017 Central Tax (Rate)

Order dated 25/01/2019

Issue: 1. Whether the use of the name of the applicant i.e. 'General Mills India Pot. Ltd.' on the packaging for supply of products by the applicant solely for the limited purpose of complying with the mandatory requirement under Chapter 2 of FSSAI Regulations on the proposed packing and not for the purpose/with the intention of indicating a connection in the course of trade between the products, would be construed as 'brand name' for the purpose of serial no. 73 of the Exemption Notification no.28/2017-Central Tax (Rate)?

2.If the applicant voluntarily forego the enforceable right to such brand name subject to fulfillment of the conditions in Annexure-I of the Notification No. 28/2017-Central Tax (Rate), dated 22-9-2017, in that case whether the applicant will be exempted from the tax?

Crux: 1. It was held that the use of the name of the applicant i.e. 'General Mills India Pot. Ltd.' on the packaging for supply of products by the applicant solely for the limited purpose of complying with the mandatory requirement under Chapter 2 of FSSAI Regulations on the proposed packing, would be construed as 'brand name' for the purpose of Exemption notification.

2. It was held that if the applicant voluntarily forego the enforceable right to such brand name subject to fulfillment of the conditions in Annexure-I of the Notification No. 28/2017-Central Tax (Rate), dated 22-9-2017, in that case applicant will be exempted from the tax.

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 Notification No. 28/2017 Central Tax (Rate)

Issue: Whether 'Bike Locks' used for motorized bicycle are classified and taxable under HSN 8714 (Parts and Accessories of Bicycle and other cycle).

Crux: The product 'cycle locks' is classifiable under chapter heading 8714 of the Customs Tariff Act, 1975 and GST rate applicable to chapter heading 8714 is applicable to the said product.

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Harith Budhraja v/s.Shri S.H. Hasan and Smt. Kamini Chauhan Ratan, Member

Order modify by AAAR

Order dated 17/09/2018

Issue: The advance ruling authority passed the order that Canned pineapple slices, dipped in sugar syrup are covered under Tariff item no. 2008 and are leviable to 6% CGST and 6% SGST under Notification no. 1/2017-Central Tax (Rate), dated 28-6-2017 (as amended).

Crux: AAAR modify the ruling given by authority for advance ruling and held that the product in question i.e. "Canned Pineapple Slices dipped in sugar syrup" is covered under the Tariff Item no. 0811.

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 Section 7(2) CGST Act, 2017

Order dated 13/09/2018

Issue: (a) What is the correct classification HSN code based luminaire in passenger coaches of Indian Railways which exclusively works on electric supply of 110/127 Volts?
(b) What is the rate at which such LED lights shall attract GST under Notification No. 1/2017-Central Tax (Rate), dated 28-6-2017?

Crux:  1. The Correct classification of luminaire in passenger coaches of Indian Railways which exclusively works on electric supply of 110/127 Volts is under Chapter 9405.
2. As per Schedule-II of Notification no. 1/2017-Centrat Tax (Rate), dated 28-6-2017 (as amended) issued by the Central Government and corresponding notification issued by the Uttar Pradesh Government LED lights shall attract to 6% CGST and 6% SGST.

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 Notification No. 1/2017 Central Tax (Rate)

Order dated 03/06/2018

Issue:

1. Whether activity of printing of question papers on behalf of educational institutions can be classified as activity of supply of goods or supply of services?

2. If it is supply of services, referring to Sr.No.27 of Notification No. 11/2017-C.T. (R), dated 28-6-2017 as amended by Notification No.31/2017-C.T. (R), dated 13-10-2017, then benefit of S. No. 66 of Notification No.12/2017-C.T. (R), dated 28-6-2017 is allowable as amended by Notification No. 2/2018-C.T. (R), dated 25-1-2018; or

3. If it is supply of goods, then question paper should be treated as exempted goods at S. No. 119 of exempted list at NIL rate of tax under chapter heading/sub-heading of 4901 10 10 of "printed books including Braille books"; or

4. It should be covered by Schedule I at S.No.201 liable to tax at 2.5 CGST under "brochures, leaflets and similar printed matter, whether or not is single sheets".

Crux:1.The activity of printing of question papers by the applicant is activity of supply of services classifiable under Heading 9989 of the scheme of classification of services.

2.The benefit of Sr. No. 66 of Notification No. 12/2017-Central Tax (Rate) is admissible only in case where service is provided to an educational institution [(as defined in clause (y) of Paragraph 2 of the Notification No. 12/2017-Central Tax (Rate)]. The services of printing of question paper, supplied by the applicant to other than 'educational institutions' will be covered by Sr. No. 27(i) of Notification No. 11/2017-Central Tax (Rate), as amended, and will attract Goods and Services Tax @ 12% (CGST 6% + SGST 6% or IGST 12%).

3. No, it is not supply of goods.

4. Fourth question raised by the applicant is applicable only when third question is affirmative i.e., activity of printing of question papers on behalf of educational institutions is considered as supply of goods, as the answer to the third question is negative, hence fourth question is not applicable.

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  Notification No. 12/2017 Central Tax (Rate)

Order dated 03/06/2018

Issue:(a) Whether supply of food items at GMUs (General Minor Units) at Railway Platforms which include only counter sale of packed food items, drinks and cooked item shall be treated as "Sale of Goods" or "Sale of Services"?

(b) If it is sale of services, whether the whole revenue shall be taxed @ 5% without ITC under Serial No. 7(ia) of Notification No. 11/2017-C.T. (Rate), dated 28-6-2017 or assessee can opt to pay tax @ 18% with ITC under Serial No. 7(ix) of that Notification?

(c) If the assessee pays the taxes @ 5% under Serial No. 7(ia), whether assessee can claim the Input Tax Credit (ITC) of GST paid on license fees to Indian Railway or IRCTC?

(d) If answer to question (c) is negative, what will be the consequences for wrong availing of ITC?


Crux:1.Supply of Food items at GMUs (General Minor Units) at railway platforms which includes only counter sale of packed food items, drinks and cooked item shall be treated as "Supply of Services"

2.Whole revenue shall be taxed @ 5% without ITC under Serial No. 7(ia) of Notification No. 11/2017-C.T. (Rate), dated 28-6-2017.

3.Applicant cannot claim the Input Tax Credit of GST paid on license fees to Indian Railway or IRCTC.

4.Question raised is out of purview of the mandate of Advance Ruling u/ s 95(a).

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Order modify by AAAR

Order dated 01/11/2019

Issue: (i) Whether supply of food items at GMUs (General Minor Units) at Railway Platforms which include only counter sale of packed food items, drinks and cooked item shall be treated as "Sale of Goods" or "Sale of Services"?
(ii) If it is sale of services, whether the whole revenue shall be taxed @ 5% without ITC under Serial No. 7(ia) of Notification No. 11/2017-C.T. (Rate), dated 28-6-2017 or assessee can opt to pay tax @ 18% with ITC under Serial no.7(ix) of that notification.
(iii) If the assessee pays the taxes @ 5% under Serial No. 7(ia), whether assessee can claim the Input Tax Credit (ITC) of GST paid on license fees to Indian Railway or IRCTC.
(iv) If answer to question (iii) is negative. What will be the consequences for wrong availing of ITC?

Crux: AAAR held that Advance Ruling Order passed by the Authority for Advance Ruling is just and proper and no interference is required in the said ruling.

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 Notification No. 11/2017 Central Tax (Rate)

Order dated 06/06/2018

Issue:

Whether GST is applicable on upfront amount (called as premium/salami) payable in respect of services by way of granting of long term lease of the thirty years or more for plots catering to public health care such as hospital, nursing home, diagnostic centres etc?.

Crux:

GST is not applicable i.e. exempted on upfront amount, if the conditions are satisfied as mentioned at Serial no.41 of Notification No.12/2017-Central Tax (Rate), dated 28-6-2017 as amended by Notification No. 32/2017-Central Tax (Rate), dated 13-10-2017.

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 Notification No. 12/2017 Central Tax (Rate)

Order dated 25/05/2018

Issue:(a) Whether Mahua De-oiled cake (De-oiled Rice Bran) being used as an ingredient of Cattle Feed, Poultry Feed and other animal feeds and is 'Waste generated' during the solvent extraction process?

(b) Whether the applicant is eligible to get entire tax input credit of GST paid on purchase of Mahua Oil Cake/ Rice Bran Oil cake used in the manufacture of solvent extracted oil?

Crux:(a) Mahua De-oiled cake/De-oiIed Rice Bran is a by-product occurred during the solvent extraction process, which is used as an ingredient of Cattle Feed, Poultry Feed and Other animal feeds.

(b) The input credit of GST paid on purchase of Mahua Oil Cake/Rice Bran Oil cake used in the manufacture of solvent extracted oil is partially allowed, because, the applicant manufacturing both taxable and exempted goods by using raw materials viz Mahua De-oiled cake and De-oiled Rice Bran. Further, if common inputs are used for both taxable and exempted supplies, the applicant is required to reverse the credit proportional to the amount of credit pertaining to the exempted supplies immediately.

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Order modify by AAAR

Order dated 12/10/2018

Issue: (a) Whether Mahua De-oiled cake/ De-oiled Rice Bran, being used as an ingredient of cattle feed, poultry feed and other animal feeds is 'Waste generated' during the solvent extraction process?
(b) Whether the applicant is eligible to get entire tax input credit of GST paid on purchase of Mahua Oil Cake/Rice Bran Oil cake used in the manufacture of solvent extracted oil?

Crux: AAAR modify the Ruling of the Authority on Advance Ruling to the extent that -
(i) Input Credit attributable to the supply of de-oiled rice bran cake (exempted supply) is to be reversed by the appellant in terms of Section 17(2) of the CGST Act, 2017
(ii) GST @ 18% is payable on supply of de-oiled mahua cake with consequent allowing of input credit in terms of Section 16 of the CGST Act, 2017.

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Order dated 16/05/2018

Issue:

(a) Whether supply of comprehensive annual maintenance service which may also involve incidental supply of spare parts/ goods should be classified as a composite supply or mixed supply?

(b) In case the said contract is considered as composite supply, what is the principal supply between goods or services?

(c) In case goods are considered as principal supply, how the taxability should be determined considering the following:
(i) The contract would entail supply of various goods falling under different tax brackets.
(ii) These goods would be supplied on a need basis as and when required at different point(s) of time.
(iii) There is no fixed value ascribed for goods in the contract considering these goods would be supplied depending up condition of the locomotive at the time of maintenance.

(d) In case services are considered as principal supply, what tax rate should be applicable?

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

Crux:

(a) Since the supply of maintenance service is for a one and fixed price with or without supply of spare parts/goods and supply of service and goods is made in conjunction with each other in the ordinary course as per maintenance contracts, this maintenance service to the extent of presence of all the necessary ingredients cited in the legal provisions quoted supra, is naturally bundled with the incidental supply of goods., it is case of composite supply of service,

(b) The said contract merits to be considered to be a composite supply of service, and principal supply is service inasmuch as the supply of goods is merely incidential to the maintenance contract in the given facts and circumstances.

(c) Not applicable because it is supply of service.

(d) The Service Code for the maintenance and repair service of transport machinery and equipment is 998714 and the prescribed rate of GST is :-
CGST @ 9% of the taxable value, SGST @ 9% of the taxable value or IGST @ 18% of the taxable value.

(e) Where the service provider and service recipient of a service are located in India, the provisions of Section 12 of the IGST Act, 2017 determine the place of supply of services. Sub-section (10) of Sec. 12 ibid reads as under -
The place of supply of services on board a conveyance, including a vessel, an aircraft, a train or a motor vehicle, shall be the location of the first scheduled point of departure of that conveyance for the journey.

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