This weekly summary analyses the stories related to the Goods and Service Tax, Authority for Advance Ruling (AAR) and Appellate Authority for Advance Ruling (AAAR) that have been published at Taxscan.in. during the previous week from August 19 to August 25 2023.
The Gujarat Authority for Advance Ruling (AAR), ruled that the AI Crate/Travis is classified under Tariff Item (TI) 7306 of the Customs Tariff Act and attracts 18% Goods and Service Tax (GST).
A Two-Member Bench comprising Milind Kavatkar (Member, SGST) and Amit Kumar Mishra (Member, CGST) observed that “The diagram of the product in question viz AI crate (Artificial Insemination crate)/Travis, and the photograph of the product that was shown during the course of personal hearing, clearly depict that the product is nothing but a structure made of tubes, pipes of iron and steel. Ideally, therefore, the product falls within the ambit of TI 7306.” The Authority thus concluded that as far as rate of tax is concerned, we find that in terms of Notification No. 01/2017-CT (Rate) dated 28.06.2017, Schedule III, Sr. No. 220, the rate of GST is 18%. The product AI crate (Artificial Insemination Crate)/Travis is leviable to GST at the rate of 18% [9% CGST and 9% SGST).
The Gujarat Authority for Advance Ruling (AAR), recently ruled that input tax credit (ITC) is applicable for machinery foundation and structural supports, as included in definition of plant and machinery.
A Two-Member Bench of the Authority comprising Milind Kavatkar (Member, SGST) and Amit Kumar Mishra (Member, CGST) concluded that “Works contract services (WCS) taken for structure on which machineries are fixed to earth by foundation and services taken for setting up plant i.e. MS steel structure is eligible subject to findings from para 19 onwards. Input Tax Credit (ITC) on structure/shed, erected on the left side of the Sand mill and spray dryer and the ITC on the structure/shed [i.e. roof and its supports] is not eligible.”.
The Bench also ruled that ITC in respect of foundation and support structure in respect of ETP [Effluent Treatment Plant] and Transformer is blocked in terms of Section 17(5) of the CGST Act, 2017. Steel [TMT bar] being procured by the applicant company and used while taking works contract services for making the said foundation to fix machineries to earth is eligible.
The Karnataka Authority for Advance Ruling (AAR), observed that no Goods and Service Tax (GST) can be levied on services for transformative upskilling of working tech professionals, under Market led Fee-based Services Scheme.
A Two-Member Bench of the Authority comprising Dr. M.P. Ravi Prasad, Additional Commissioner of Commercial Taxes and Kiran Reddy T, Additional Commissioner of Customs & Indirect Taxes observed that “The Applicant has stated that he is an approved training partner of National Skill Development Corporation and has submitted a copy of the certificate from NSDC certifying the same. Thus, the applicant has satisfied the first condition. The Applicant has also stated that they have entered into an agreement with NSDC for executing the “Market led Fee-based Services” scheme which is introduced and implemented by the NSDC. Thus, the applicant has satisfied the second condition also.”
“The applicable GST on the services provided by the applicant under the “Market led Fee-based Services Scheme” is Nil. The applicant is eligible for exemption under entry 69 of Notification No. 12/2017-Centra1 Tax (Rate), dated 28.06.2017” the Authority concluded.
The Karnataka Authority for Advance Ruling (AAR), observed that education imparted by Isha Samskriti School under Isha Foundation is ineligible for Goods and Service Tax (GST) exemption.
A Two-Member Bench of the Authority comprising Dr. M.P. Ravi Prasad, Additional Commissioner of Commercial Taxes and Kiran Reddy T, Additional Commissioner of Customs & Indirect Taxes observed that “The Applicant is neither providing pre-school education nor education up to higher secondary school and they are following their own curriculum. In view of the above the Applicant is not covered under the definition of “educational institution” as per Notification No.9/2017-Integrated Tax (Rate) dated 28th June 2017 and hence cannot claim exemption as per entry no.69 of the same notification”.
“The Education being provided by the applicant is not exempt under Entry No.69 of Notification No.9/2017-Integrated Tax (Rate) dated 28th June 2017 and the service provided by the Applicant through ISHA Samskriti is not exempt under any other notification” the Authority noted.
The Rajasthan Bench of the Authority for Advance Ruling (AAR), observed that Input Tax Credit (ITC) is eligible on GST paid for inward supply for fixing of plant and machinery to earth by foundational or structural support for making the outward supply of goods.
A Two-Member Bench of the Authority comprising Umesh Kumar Garg, Member (Central Tax) and Mahesh Kumar Gowla, Member (State Tax) observed that “Input Tax Credit of GST paid on the inward supply for fixing of plant and machinery to earth by foundation or structural support which is used for making outward supply of goods/ services is admissible up to this extent only.”
The Authority further noted that the time period of 60 days provided under Section 56 of the CGST Act, 2017 is from the date of filing of application for refund to the date of credit of the refund amount in taxpayer’s bank account.
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