This Round-Up analytically summarises the key stories related to the Goods and Service Tax Authority for Advance Ruling (AAR) and Appellate Authority for Advance Ruling (AAAR) reported at Taxscan.in during July 8 to 14, 2023.
The Authority for Advance Ruling (AAR), Gujarat has held that ‘Kandi Ravo’ Tobacco Waste sold without Brand Name & Labelling shall be classified as Unmanufactured Tobacco Refuse and shall attract 28% Goods and Services Tax (GST) but no CompensationCess shall be applicable for the same.
The Authority consisting of Milind Kavatkar (SGST Member) and Amit Kumar Mishra (CGST Member) noted that the process undertaken by the applicant did not result in the emergence of a new product with a distinct name, character, and use, as per the definition of “manufacture” under the CGST Act, 2017. Therefore, the authority concluded that ‘Kandi Ravo’ should be classified as unmanufactured tobacco refuse under Chapter 24, tariff item 24013000.
The Authority for Advance Ruling (AAR), Gujarat has held that Next Gen Geo Textile called ‘StrataTex HSR®’, an innovative product proposed to be manufactured by the applicant shall attract 10% GST as the same shall be classified under Tariff Item 591 19032 of Customs Tariff Act, 1975 subject to obtaining BIS Certification.
The Authority consisting of Milind Kavatkar (SGST Member) and Amit Kumar Mishra (CGST Member), after a thorough examination of the manufacturing process, product characteristics, and its intended use, has ruled that ‘StrataTex HSR®’ falls under Tariff Item 59119032 attracting 10% GST. This specific entry applies to geotextiles conforming to IS 16391 and IS 16392, as per the amendments made to the Customs Tariff Act, effective from May 1, 2022.
The Kerala Authority for Advance Ruling (AAR), Thiruvananthapuram has held that the Marine products supplied as parts of fishing or floating vessels attract 5% Goods and Services Tax (GST) and its replacement during the warranty period is exempted from GST if done without consideration.
The AAR held that marine propellers, stern tube sets, rudder sets, SS propeller shafts, MS shafts for couplings and intermediates, and cutlass rubber bushes, when supplied for use as parts of goods falling under Heading 8901, 8902, 8904, 8905, 8906, or 8907, attract GST at a rate of 5% as per entry at Sl. No. 252 of Schedule 1 of Notification No. 01/2017 Central Tax (Rate).
The Kerala Authority of Advance Ruling held that the services in transferring the right to collect sand and mud from reservoirs by the irrigation department under Kerala Government are liable to an 18% Goods and Service Tax on a Reverse Charge Mechanism.
The AAR observed that the service provided to the State Government is not a pure service because the applicant is acquiring title to the sand and mud, which is a good. The authority further noted that the petitioner is a receiver of services provided by the Government of Kerala’s Irrigation Department.
The Kerala Authority for Advance Ruling (AAR) ruled that 1.5 % rate of GST is applicable for services of construction of affordable residential apartments and 7.5% for residential apartments other than affordable residential apartments and (Goods and Services Tax) GST for construction services will be charged after deduction of 1/3rd towards value of land and the actual value of land mentioned in agreement.
The Two Judge Bench comprising of Dr. S.L. Sreeparvathy and Abraham Renn held that the applicant is liable to pay GST at the rate of 1.5% in respect of the services of construction of affordable residential apartments and at the rate of 7.5% in respect of the services of construction of residential apartments other than affordable residential apartments subject to the conditions prescribed under the respective entries in the villa projects.
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