AAR And AAAR Weekly Round-Up

This weekend summary provides an analytical synopsis of the most major stories of Goods and Service tax Authority for Advance Ruling (AAR) and Appellate Authority for Advance Ruling (AAAR) that were authored at Taxscan.in during the two week from to April 29 to May 13, 2023 AAR rejects Application on Ground of Lack of Locus Standi as Applicant being Recipient of Service : Calcutta HC directs to Reconsider Application - Anmol Industries Limited & Anr vs The West Bengal Authority for Advance Ruling- 2023 TAXSCAN (HC) 763 A Division Bench of Acting Chief Justice T.S. Sivagnanam and Justice Hiranmay Bhattacharyya of Calcutta High Court set aside the order of the West Bengal Authority for Advance Ruling (WBAAR) and remanded the case to the same Authority for Advance Ruling to reconsider the application. The panel observed that the West Bengal Authority for Advance Ruling had made a fragile attempt in the impugned order in the writ petition to address the question of who is the applicant before the AAR seeking an advance ruling and came to the conclusion that the appellants, as recipients of service, are not entitled to maintain an application before the AAR. Coram held that it will be well within the jurisdiction of the AAR to consider the application on merits rather than rejecting the same on the ground of lack of locus standi. GST ITC not Allowable to Prefabricated Technology Sheds: AAR M/s. Sanghi Enterprises- 2023 TAXSCAN (AAR) 227 The two-bench member consisting of S.V. Kasi Visweswara Rao and Sahil Inamdar of Telangana Authority for Advance Ruling (AAR) held that Construction of sheds using Prefabricated technology is not permitted for Input Tax Credit (ITC) under Goods and Services Tax (GST). S.V. Kasi Visweswara Rao (Addl. Commissioner of State Tax) observed that the Supreme Court considered even a temporary shelter such as a hut as an immovable property as long as it is for the beneficial enjoyment of the land to which it is attached. Applying this principle, the apex court of India held the doors and shutters which are generally fixed to the door frame in the wall with screws & nails to be immovable property. The AAR bench point out that, because the “PFS” being built is an immovable property, the input tax credit is not allowed on inward supplies for its construction, including works contract services, because the credit falls under the category of blocked credits under sections 17(5)(d) and (c) of the CGST/TGST Act 2017. Inter State Supply of Ambulance Service to Tripura Government liable to 28 % IGST: AAR- M/s. Raminfo Limited 2023 TAXSCAN (AAR) 228 In a significant case, the Telangana bench of Kasi Visweswara Rao and Sahil Inamdar, Authority of Advance Ruling (AAR) has held that the transaction of supply of ambulances to the government of Tripura attracts 28 % Integrated Goods and Service Tax (IGST) as it is an inter-state supply. The bench determined that they are eligible for taking input tax credit on the tax charged on any supply of goods or services which are used or intended to be used during furtherance of this business provided the applicant fulfils the conditions for availing of ITC as detailed in provisions of Section 16 of CGST/TGST Act’2017. Accommodation Building Outside the Boundary of Religious Place attracts 12% GST: AAR M/s. Nandini Ashram Trust CITATION: 2023 TAXSCAN (AAR) 229 In a recent ruling, the Ahmedabad Bench o fMilind Kavatkar and Amit Kumar Mishra, Authority for Advance Ruling (AAR) has ruled that 12% Goods and Services Tax (GST) is applicable on accommodation buildings located outside the boundary of religious places. The authority bench Observed that as per Section 22 of the Central Goods and Services Tax Act, 2017, every supplier shall be liable to be registered from where he makes a taxable supply of goods or services or both, if its aggregate turnover in a financial year exceeds twenty lakh rupees. Commission Deducted on Bonus Amount as an Intermediary attracts 18% GST: AAR M/s. Foodsutra Art Of Spices Private Limited 2023 TAXSCAN (AAR) 230 The Telangana Authority of Kasi Visweswara Rao and Sahil Inamdar of Advance Ruling (AAR) has ruled that 18% of the commission will be deducted from the bonus amount as an intermediary. The bench observed that 5% GST is payable on the rest of the amount, which is arrived at after excluding the commission from the entire bonus, as it would be included as the value of supply of canteen services by Section 15(2) of the Central Goods and Service Tax Act, 2017. Support our journalism by subscribing to Taxscan premium. Follow us on Telegram for quick updates

AAR And AAAR Weekly Round-Up

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