This round-up analytically summarises the key stories related to the Goods and Services Tax Authority for Advance Ruling ( AAR ) and Appellate Authority for Advance Ruling ( AAAR ) reported at Taxscan.in during the period from October 14, 2024 to October 25, 2024.
The Gujarat Authority for Advance Ruling ( AAR ) has recently ruled that items such as table covers, TV covers, and washing machine covers attract 18% Goods and Services Tax.
It was observed by the advance ruling authority bench that, “The applicant in his application and the synopsis has submitted that the main usage of his product will be as table cover, TV cover, washing machine cover and that it is also used for making bags, etc. The manufacturing process submitted, states that the non-woven fabrics is manufactured out of PVC films, adhesive gums and non-woven; that PVC films is manufactured in their factory; that the adhesive gum is prepared by mixing PVC resin & DOP; that the non-woven is used in the bottom & PVC films is used on the top of the non-woven fabrics; that the non-woven is used to get proper stitching; that PVC is used for decorative purpose while non-woven is used as a base and foundation for the non-woven fabrics.”
The Rajasthan Authority for Advance Ruling ( AAR ) in a recent matter ruled that Goods and Services Tax ( GST ) under Reverse Charge Mechanism ( RCM ) for the issuance of Corporate Guarantee is payable only once when the Guarantee is issued only once, being valid for a specified period of time.
The two-member Bench of the Rajasthan Authority for Advance Ruling comprising Mahipal Singh, Central Tax Member and Mahesh Kumar Gowla, State Tax Member considered the submissions on record and observed that the provision of corporate guarantee by the foreign entity is issued without exchange of any consideration the same would render such practice as ‘import of service’ received by the Applicant.
In a notable ruling, the Rajasthan Authority for Advance Rulings ( AAR ) has clarified that soft-serve ice cream mixes, commonly referred to as mixes “softy cones”, cannot be classified as dairy products. In result, these items will attract a Goods and Services Tax ( GST ) at the rate of 18%, instead of being considered under a lower tax bracket reserved for dairy goods.
The Authority Bench of Rajasthan Advance Ruling Authority noted that, “The product in the question which the applicant proposes to manufacture is obtained by a process of manufacture which involves not only processing of liquid milk to obtain milk solids but also the further process to which different ingredients such as sugar, stabilisers, anti-caking agents and flavouring agents are subjected along with milk solids. Thus, the process of manufacture as described by the applicant involves manufacture of an edible preparation which can be broadly termed as prepared foodstuff or beverages etc.”
The Uttar Pradesh Authority for Advance Ruling ( AAR ) recently ruled that Goods and Services Tax ( GST ) is payable on the procurement of materials and installation of electricity distribution systems when done by a electricity distribution company ( DISCOM ) in light of a works contract between the DISCOM and consumers/intending agencies.
The two-member Bench of the Uttar Pradesh Authority for Advance Ruling comprising Amit Kumar, Central Tax Member and Harilal Prajapati, State Tax Member observed that in the present method of proposed deposit work, the work done by the Applicant is a “Works Contract” as per Section 2(119) of the Central Goods and Services Tax Act, 2017 ( CGST Act ).
The Uttar Pradesh Authority for Advance Ruling ( AAR ) recently ruled that Goods and Services Tax ( GST ) is not payable by an electricity distribution company ( DISCOM ), when the procurement of materials and installation of electricity distribution systems are done entirely by the consumers, with the DISCOM serving in a supervisorial role only.
The two-member Bench of the Uttar Pradesh Authority for Advance Ruling comprising Amit Kumar, Central Tax Member and Harilal Prajapati, State Tax Member observed that the where the value of materials and cost of execution of work for installation of electric lines are borne by the recipient of service and the applicant charges supervision fees only, the Applicant shall not be liable to pay GST on the value of such materials and installation.
The Maharashtra Authority for Advance Ruling ( AAR ) recently ruled that 0% or Nil Goods and Services Tax ( GST ) is applicable in respect of work allotted by the Maharashtra Jeevan Pradhikaran ( MJP ) as part of the Jal Jeevan Mission, a Government of India operation.
It was noted that the Applicant qualifies as a ‘Governmental Authority’ for the purpose of exemption under Notification No.16/2021 – Central Tax (Rate) and for the Services rendered by the Applicant towards the MJP before 31.12.2021. The Decision was rendered by the AAR after recognizing that “Technical Consultancy for Project Development and Management support services” provided by the Applicant to MJP as part of Jal Jeevan Mission by the Government of India qualifies as “pure services” for the period prior to 01.01.2022.
The Maharashtra Authority for Advance Ruling ( AAR ) recently ruled that the Maharashtra Jeevan Authority ( MJA ) is a Service Receiver under Section 2(93) of the Central Goods and Services Tax Act, 2017 ( CGST Act ) in respect of receiving grant amounts allocated by the Government, which are then paid to the Applicant, a hired technical consultant.
The two-member Bench of the Maharashtra Authority for Advance Ruling comprising Ajaykumar V. Bonde, State Tax Member and Priya Jadhav, Central Tax Member observed that the Agreement between the Applicant and MJP required the Applicant to provide services to MJP in lieu of consideration as and when payable under the provisions of Consultancy Agreement.
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