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 Ruling (AAAR), reported at Taxscan.in during the previous week from October 16 to 23^rd, 2022.

Re: M/s Ahuja Industries CITATION: 2022 TAXSCAN (AAR) 262

The Authority For Advance Ruling Goods And Service Tax (AAR), Punjab Bench, has recently clarified that cotton seed (Banaula) is not eligible for exemption from the payment of GST on GTA services. The aforesaid observation was made by the Authority when an application was preferred before it by an applicant named M/S Ahuja Industries, who is engaged in the business of receiving cotton seeds (Banaula) after being transported by the Goods Transport Agencies (GTA) which is classifiable with chapter heading 9965/ 9967 of the GST Tariff Act, 2017. The question seeking the Advance Ruling being as to whether cotton seeds (Banaula) are included in the list of agricultural produce for exemption in GTA service under notification no 12/2017, dated 28th June 2017 (Tariff heading 9965/9967) and if not the tax rate applicable for the same, the Authority held that Cotton seed (Banaula) is not eligible for exception from the payment of GST on GTA services and that the GST chargeable on the same is 5% (2.5 % CGST and 2.5 % SGST) on GTA services availed by the applicant for transporting cotton seeds (Banaula), provided that credit of input tax charged on goods and services used in supplying the service has not been taken, or else at 6%, under Sr. No. 9 of the Notification No. 11/2017 – Central Tax (Rate) dated 28.06.2017.

Re: M/s. KONKAR RAILWAY CORPORATION LIMITED  CITATION:   2022 TAXSCAN (AAR) 260

The Odisha Authority for Advance Ruling (AAR), has recently, held that the Konkan Railway Corporation Limited, requires a separate registration in the state for carrying out construction work given by the East Coast Railway. The advance ruling being sought on the question as to whether a separate registration is required in Odisha state and  If yes, whether E-tender document/LOA would suffice as address proof , the Authority answered in affirmation telling that the Applicant having its principal place of business in Maharashtra is required to be registered under Odisha Goods and Services Act, 2017 and Central Goods and Services Act, 2017 for the works contract service provided to by it to M/s East Coast Railway, Odisha. As regards to the rest of the part of the question i.e., whether E-tender document/LOA would suffice as address proof, the authority was of the opinion that as the said question does not get covered under the issues on which the advance ruling can be sought under CGST Act, 2017 in terms of Section 97(2) of the said Act, no ruling can therefore be given to the same.

M/s. Tarsem Chand Garg Contractor CITATION: 2022 TAXSCAN (AAR) 259

The Punjab Authority for Advance Ruling (AAR), has recently held that Man power supply made to Punjab Water Supply and Sewerage Board, attracts Nil GST. The aforesaid observation was made by the Authority when the applicant, M/s Tarsem Chand Garg Contractor, engaged in the business of supplying manpower to Punjab Water Supply and Sewerage Board for sewerage cleanliness, sought an advance ruling. The advance ruling being sought on the question as to whether manpower supply made to Sewerage Boards for sewerage cleanliness, is covered under trade mention in Serial No. 3 of Notification no. 12/2017 dated 28.06.2017, the Authority observed that pure services (excluding works contract service or other composite supplies involving supply of any goods) provided to the Central Government, State Government or Union territory or Local authority or a Government authority by way of any activity in relation to any function entrusted to a panchayat under article 243G of the Constitution or in relation to any function to any function entrusted to a Municipality under article 243W of the Constitution, are nil rated.

Re: M/s. Mis. Jayshankar Gram in and Adivasi Vikas Sanstha CITATION:   2022 TAXSCAN (AAAR) 140

The Maharashtra Appellate Authority For Advance Ruling For Goods And Services Tax, (AAAR), has recently, while deciding an appeal filed before it by an appellant, held that charitable activities not being “supply” u/s 7(1)(a), reimbursement amount paid by Maharashtra Govt to the Appellant for one stop crises centre scheme cannot be subjected to GST levy. The aforesaid observation was made by the Authority when an appeal was filed before it under Section 100 of the Central Goods and Services Tax Act, 2017 and the Maharashtra Goods and Services Tax Act, 2017, by M/s. Jayshankar Gram in and Adivasi Vikas Sanstha, against the Advance Ruling No. GST-ARA-97/2019-20/B-91 dated 10.11.2021, pronounced by the Maharashtra Authority for Advance Ruling (MAAR).

M/s. Kaka Ram Hari Chand  CITATION:   2022 TAXSCAN (AAR) 261

The Punjab Authority for Advance Ruling (AAR) Goods and Service Tax, has recently clarified that cotton seed is not an agricultural produce under the GST Act. The aforesaid observation was made by the Authority when an application was preferred before it by an applicant named M/S Kaka Ram Hari Chand, engaged in the business of receiving cotton seeds ‘Banaula’, after being transported by Goods Transport Agencies (GTA) which is classifiable with Chapter Heading 9965/9967 of the GST Tariff Act, 2017 and Goods and Services Tax.  The question involved in the application seeking the advance ruling , being as to whether there is no liability to pay tax in view of the exemption granted vide notification no. 12/2017, dated 28th June, 2017 issued under section 11 (1) of the CGST Act, 2017 which excepts the tax on GTA services in relation to ‘agricultural produce’, vide entry no. 21(a) in the table appended to the same, read with the definition of the term ‘agricultural produce’ given vide para 2 of the said notification, the Authority was of the opinion that as in the case of cotton seed, the same is being obtained by way of an industrial processing called ginning, it is debarred from the definition of agricultural produce as per the notification no. 12/2017- Central Tax (Rates), dated 28.06. 2017.

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