This weekly summary analyses the stories related to the Goods and Services 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 26 to August 31, 2023.
The Authority for Advance Ruling (AAR), Uttar Pradesh has held that Goods and Services Tax (GST) is applicable on the Supervision Charges collected by the Electricity Distribution Company for Electricity Line Installation while the Material Costs are exempt from GST when it is borne by the service recipient himself.
The two-member authority comprising Shri Rajendra Kumar (CGST Member) and Shri Harilal Prajapati (SGST Member) established that GST is applicable on supervision charges billed for services provided. However, when customers bear the cost of material and execution work, those costs should not be subjected to GST if the company acts as a pure agent.
The Appellate Authority for Advance Ruling (AAAR), Uttar Pradesh has upheld that the training provided to commercial pilots for obtaining Aircraft Type Ratings (ATRs) does not qualify as a “qualification” but is rather a “Course Completion” only and hence it is not eligible for Goods and Services Tax (GST) exemption.
The two-member authority comprising Dr. Uma Shanker (CGST Member) and Smt. Minishy S (SGST Member) clarified that the training services provided by the applicant did not meet the criteria for an educational institution providing education as part of a curriculum for obtaining a recognised qualification under the GST exemption framework. In result, the AAR concluded that the services were not eligible for exemption under entry number 66(a) of Notification No. 12/2017-Central Tax (Rate) dated 28-06-2017.
The Authority for Advance Ruling (AAR), Uttar Pradesh has held that foam cup pads are to be classified under the Harmonized System of Nomenclature (HSN) code 39262091, attracting a Goods and Services Tax (GST) rate of 18%.
The AAR, after careful consideration of the materials used and the characteristics of the foam cup pads, stated that the foam cup pads are made primarily from polyurethane foam, glue and fabric and it should be classified under HSN code 39262091 which pertains to “Articles of apparel and clothing accessories (including gloves, mittens, and mitts), of polyurethane foam” and shall be subject to GST at the rate of 18%.
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