AAR Weekly Round-Up

This weekly round-up analytically summarizes the key stories related to the Authority for Advance Ruling (AAR) reported at Taxscan.in during the previous week from July 7^th August to 13^th August 2022.

Re M/s Sri Bhavani Developers - 2022 TAXSCAN (AAR) 229

The Telangana State Authority for Advance Ruling (AAR) has held that the labour and manpower supply by the agency would attract 18% GST. Concluding the order, the bench held that “If the initial contract for land and building, even if entered through (2) different un severable agreements, constitutes a single contract and hence will attract tax @0.5% for affordable housing and @2.5% for other housing under CGST & SGST respectively without ITC. However, any other agreement which is beyond the scope of the initial agreement and is a severable agreement visà-vis the initial agreement then the construction made under this contract will attract 9% tax under CGST & SGST each with ITC.”

Re M/s. OLA ELECTRIC TECHNOLOGIES PRIVATE LIMITED - 2022 TAXSCAN (AAR) 228

In the case of Ola Electric Technologies Private Limited, Tamil Nadu Authority for Advance Ruling (AAR) has ruled that the transfer between two cost centers of the same entity for monetary value constructs supply and is liable to levy GST. It was observed that any payment made or to be made/ the monetary value of any action in response to the supply of any goods/ services was included as consideration. Further viewed that the transfer of right to do integration testing, installation, and marketing software from the applicant to Karnataka Cost center is leviable to GST as such transaction was executed between two distinct persons i.e., two cost centers of the same entity.

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