AAR and AAAR Weekly Round-up

This weekly round-up analytically summarizes the key stories related to the Authority for Advance Ruling (AAR) and Appellate Authority for Advance Rulings (AAAR) reported at Taxscan.in during the previous week from June 25^th to July 1^st, 2022.

In Re: M/s. The Coronation Arts Crafts - 2022 TAXSCAN (AAR) 205

The Authority for Advance Ruling (AAR), Tamil Nadu has held that
the printing of content provided by the recipient on the paper and materials of the applicant and supply of such printed leaflets to the recipient is a composite supply as defined under section 2(30) of the CGST/TNGST Act 2017 with ‘Supply of service of printing’ as the principal supply. The said supply is classifiable under SAC 9989 with 18% GST.

In Re: M/s Dubai Chamber of Commerce and Industry Liaison Office - 2022 TAXSCAN (AAAR) 128

The Maharashtra bench of the Appellate Authority for Advance Rulings (AAAR) has held that the chamber is not an intermediary, it held that the host of activities carried out by it, which include event-based support services, are mixed in nature. These comprise taxable and non-taxable services and will come under the ambit of taxable ‘supply’.

In Re: M/s. Jayabheri orange county owners association - 2022 TAXSCAN (AAR) 204

The Telangana State Authority for Advance Ruling (AAR) has held that
any amounts collected periodically along with the monthly maintenance charges are covered under Entry 77 of Notification No. 12/2017. Therefore, they are taxable if the total amount collected by the Resident Welfare Association (RWA) by whatever name i.e., monthly maintenance or sinking fund, etc., exceeds Rs.7500/- and 18% GST applicable.

In Re: M/s Mody Education Foundation - 2022 TAXSCAN (AAR) 201

The Authority for Advance Rulings (AAR), Gujarat has held that e way bill is mandated on the transfer of raw material, semi-finished, finished, and capital goods between the two units under the same GST registration and no exemption for the same.

In Re: M/s. Dry Blend Foods Pvt Ltd - 2022 TAXSCAN (AAR) 203

The Authority for Advance Rulings (AAR), Uttarakhand has held that GST cannot be levied on the payments to overseas commission agents under the reverse charge mechanism.

The import of services shall be treated as interstate supply of services and the same is chargeable to IGST under reverse charge i.e. service recipient located within Indian territory has to pay the tax. Since the transaction is related to an intermediary service that is out of the ambit of ‘import of services’, accordingly the GST under reverse charge is not payable on the same.

In Re: M/s. The Singareni Collieries Company Limited - 2022 TAXSCAN (AAR) 202

The Telangana State Authority for Advance Ruling (AAR) has held that royalty paid in respect of mining lease contracts attracts 18% GST.

The Notification No. 11/2017 the group head ‘99733’ enumerates leasing services for the right to use intellectual property and similar products. Under this group, the tariff item ‘997337’ enumerates ‘licensing services for the right to use minerals including its exploration and evaluation’. This is the appropriate entry concerning royalty on mining. Hence the rate of tax of the residual entry is attracted on the royalty paid for mining at the rate of 9% CGST & 9% SGST.

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