This weekly round-up analytically summarizes the key stories related to the Authority for Advance Ruling (AAR) and Appellate Authority for Advance Rulings (AAAR) reported at Taxscan.in during the previous week from July 24th to August 6th, 2022.
The Andhra Pradesh Authority for Advance Ruling ( AAR )has held that the procurement and distribution of drugs, Medicines, and other surgical equipment by APMSIDC on behalf of the government without any value addition, and without any profit or loss, without even the intent to do business in the same amounts to Supply under Section 7 of CGST/SGST Act and the establishment charges received from the State Government by APMSIDC is not eligible for exemption as per Entry 3 or 3A of Notification 12/2017 Central Tax.
The Andhra Pradesh Authority for Advance Ruling (AAR) has held that no Input Tax Credit on Monthly rental invoices is raised after the expiry of the period of limitation. The Authority observed that for any transaction, the tax invoice is the primary document evidencing the supply and vital for availing input tax credit. The ‘tax invoice’ is issued by the lessor on 01.04 2020 for the services supplied in the financial year 2018-2019.Theinvoicehasnotbeenissued within the stipulated time as prescribed in Rule 47.
Smt. Mallika Arya, Member (Centre), and Shri Ankur Garg, Member (State) have ruled that uniformity in the rate of GST applicable for all kinds of supply of food and drinks made available in trains, platforms, or stations, and that the GST rate on supply of food and/or drinks by the Indian Railways or Indian Railways Catering and Tourism Corporation Ltd. or their licensees, whether in trains or at platforms (static units), will be 5% without ITC.
The Andhra Pradesh Authority for Advance Ruling (AAR) has held that ‘Solid Waste Management’ service to Governmental authority and Government Entity not exempted. The Coram of Mr D. Ramesh, Member (State Tax) and Mr. RV Pradhamesh Bhanu, Member (Central Tax) has held that ‘Solid Waste Management” services to be provided by the applicant fall under SAC code No.9994 “sewage and waste collection, treatment and disposal and other environmental protection services” and in particular Group 99943-Waste treatment and disposal services” as per Annexure to Notification No.11/2017 Central Tax (Rate) and not exempted under SI.No.3 of Notification No.12/2017 – Central Tax (Rate).
The Delhi Appellate Authority for Advance Ruling (AAAR) comprising Smt. Mallika Arya, Member (Centre), and Shri Ankur Garg, Member (State) held that delay in filing an appeal beyond the prescribed limit can’t be condoned.It was observed that the appeal was hit by the limitation of time and the language of the Statute which confers power on the Appellate Authority to entertain the appeal by condoning the delay only up to 30 days after the expiry of 60 days.
The Delhi Appellate Authority for Advance Ruling(AAAR) has held that the supply of goods to outbound international travellers falls under ‘supply’ which attracts GST and upholds the order of Delhi AAR.Smt. Mallika Arya, Member(Centre) and Shri Ankur Garg, Member(State) held that “transactions of supply of goods to outbound international travellers fall within the definition of “taxable territory” and when to read in conjunction with section 7 of the CGST Act, 2017 forms “supply” and attracts the applicable GST on the date of supply of the goods.”
The Madhya Pradesh Appellate Authority for Advance Ruling (AAAR) held that GST is payable on the sale of developed land as it is covered under ‘Construction Service’.The bench comprising Shri Navneet Goel, Member, and Shri Lokesh Kumar Jatav, Member held that “the activity of purchase or allotment of land and selling the said land after undertaking development activities of providing amenities such as Drainage line, water line, electricity line, land levelling and common facilities viz. road and street light, etc. is liable to GST.”
The Andhra Pradesh Authority for Advance Ruling has held that fish/prawn farming does not amount to ‘agriculture’, and no Goods and Services Tax exemption. The Authority observed that fish/prawn farming is not covered under services to agriculture as enumerated under sl No. 54 of the notification as there was no basic operation carried out. The Authority further observed that even when the lease agreement is examined, nowhere it is mentioned specifically that the land is leased for any purpose related to agriculture, rearing of animals, fishing etc. The agreement between the lessor and the lessee (applicant) is executed in the lines of commercial renting of any other land without any reference to the purpose of usage of the land.
The Andhra Pradesh Authority for Advance Ruling has held that the construction of a 20 MT Cold Storage building for the primary processing centre under the Mega park scheme attracts 12% GST. The Coram of Mr D. Ramesh, Member (State Tax) and Mr RV Pradhamesh Bhanu, Member (Central Tax) has held that the Construction of a 20 MT Cold Storage Building for Primary Processing Centre under Mega park scheme classified under V (e) of sl. No. 3 under heading 9954 Construction services of notification No: 11/2017 with the applicable rate of tax at 12%.
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