AAR & AAAR Weekly Round Up

This weekly round-up analytically summarises the key stories related to the Authority of Advance Ruling (AAR) and Appellate Authority of Advance Ruling (AAAR) reported at Taxscan.in during the previous week from January 31 to February 5, 2022.

M/s Rochem Separation Systems

The Maharashtra Authority of Advance Ruling (AAR) has ruled that the 18% GST on supply of Reverse Osmosis Plant/system (RO Plant/system) to Indian Navy/Indian Coast Guard in normal course.

The AAR ruled that 18% GST is applicable on supply of Reverse Osmosis Plant/system (RO Plant/system) to Indian Navy/Indian Coast Guard in normal course and on supply of RO Plant/system (Reverse Osmosis Plant) to the Indian Navy/Coast Guard which would be installed in/on a warship.

Poona Club Limited

The Maharashtra Authority of Advance Ruling (AAR) has held that GST Payable on Membership Fee collected from Members of the Club.

The coram of Rajiv Mangoo and T.R.Ramnani has held that membership fee collected from members at the time of giving membership is liable to tax under CGST/SGST Act. The AAR has ruled that  the annual subscription and annual games fee collected from members of the club is liable to tax under CGST/SGST Act

Erode City Municipal Corporation

The Tamil Nadu Appellate Authority of Advance Ruling (AAAR) has ruled that GST not payable on Rent for lockers provided in bus stands by a Municipal Corporation.

“In respect to the question pertaining to whether the charges obtained for the service of road cutting for the purpose of laying cables by telephone companies alongside roads on contract basis is a composite supply, the question is answered in affirmative. Though two charges are collected by the appellant for road cutting and annual rent for cables running across the road, it can be seen that unless road is cut, cables cannot be laid and mere road cutting without laying of cables is useless. Therefore, both the services have to run in tandem with respect to the telephone companies and the methodology of collection of money is immaterial to the fact of the activities of road cutting and laying of cables, which is indeed a composite supply, it must also be noted that this is a factual question and is restricted to the particular activity of road cutting followed by laying of cables by telephone companies and therefore, the same is not to be extended to all the types of road cutting activities,” the AAAR further added.

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