The Tamil Nadu Authority for Advance Ruling (TN AAR) ruled that 18% Integrated Goods and Services Tax (IGST) is applicable on the mattresses supplied to the educational institutions of both Karnataka State and other states.
The Applicant, Hosur Coir Foams Private Limited, submitted that they are manufacturer and supplier of Rubberized Coir Mattresses and Bare Blocks and claims that their supply to educational institutions are exempted.
The Authorized Signatory (AS) of the applicant appeared before the authority and reiterated the submissions. The AS stated that they are manufacturer of Mattress, issued two invoices with GST at the rate of 18% to a Karnataka State undertaking intended for student hostels run by Karnataka State Social Welfare Department and no exemption was claimed on the supplies already made against tender.
After considering the submissions of both sides, the authority observed the question which needs to be answered is the rate of GST applicable for e supply of Mattresses intended for hostel students of educational institutions run by Government of Karnataka and other educational institutions through M/s Coir Industrial Co-operative Society Limited under Tender process.
Further stated that looking more closely at Notification No. 02/2017 IT (Rate) on June 28, 2017, discovered there was no exemption for HSN 9404, let alone supplies for students living in government-run dormitories.
The panel of N. Usha and R. Gopalasamy ruled that the mattresses, classified by the applicant under HSN 940429, supplied by the applicant in the State of Tamil Nadu to hostel students of Government Schools, educational institutions of Government of Karnataka under Department of Social Welfare, through M/ s Coir Industrial Co-operative Society Limited is liable to 18% IGST. Additionally it was stated that the same 18% IGST rate will be applicable to other states also.
Support our journalism by subscribing to Taxscan premium. Follow us on Telegram for quick updates
