This weekly round- up analytically summarizes the key stories related to the GST Authority for Advance Ruling (AAR) and Appellate Authority for Advance Ruling (AAAR), reported at Taxscan.in during the previous week from October 31st to November 6th 2022.
The Karnataka Authority for Advance Ruling ( AAR ), has recently in an application filed before it, held that reimbursement of land compensation amount, paid to farmers and land owners during execution of work, attracts GST. The aforesaid observation was made by the Authority when the applicant M/s Sree Subha Sales, sought an advance ruling as to the applicability of GST on the reimbursement of land compensation amount paid to farmers and land owners during the course of execution of work.
With the applicant stating that land compensation was paid to the land owners on whose land the express feeder line passes and to any land within 9-meter vicinity on the either sides of the express feeder line, since there should not be any trees, plants or structures within the 9-meter vicinity of the express feeder line, as per norms, the applicant further added that where it was inevitable to cut the crops and trees during the course of execution of project, crop compensation and tree cut compensation was paid to the farmers, wherein the Authority observed that reimbursement of land compensation amount paid to farmers and land owners during the course of execution of work is chargeable to GST as the Applicant does not qualifies to be a Pure Agent.
In a recent applicant filed by, M/s Attica Gold Private Ltd, the Karnataka Authority for Advance Ruling (AAR), has held that the claim of Input Tax Credit can be made on Capital Goods under Marginal Scheme. The aforesaid observation was made by the Authority when the applicant has sought advance ruling in respect of the question as to whether ITC is allowed to be claimed on Capital Goods for the Applicant under Marginal Scheme, wherein the Bench consisting of Dr. M.P. Ravi Prasad Additional Commissioner of Commercial Taxes Member (State) and Kiran Reddy T Additional Commissioner of Customs and Indirect Taxes Member (Central) observed that ITC can be claimed on Capital Goods by the Applicant under Marginal Scheme subject to section 16 to 21 and rules 36-45 of CGST Act a d Rules 2017.
With M/s Attica Gold Private Ltd, seeking an advance ruling on whether an applicant who is under the Marginal Scheme can claim an Input Tax Credit on the expenses like Rent, Advertisement expenses, commission, Professional expenses, and other expenses, the Karnataka Authority for Advance Ruling (AAR), has ruled that such a claim of Input Tax Credit can be made under the Marginal Scheme for expenses like Rent, Advertisement, etc.
The aforesaid observation was made by a Bench of the AAR, Karnataka, consisting of Dr. M.P. Ravi Prasad Additional Commissioner of Commercial Taxes Member (State) and Kiran Reddy T Additional Commissioner of Customs and Indirect Taxes Member (Central) who held that an applicant who is under Marginal Scheme can claim Input Tax Credit on the expenses like Rent, Advertisement expenses, commission, Professional expenses and other like expenses, subject to section 16 to 21 and rules 36-45 of CGST Act and Rules 2017.
While deciding upon an application filed before it by M/s Sree Subha Sales , the Karnataka Authority for Advance Ruling ( AAR ), has held that no GST is leviable upon the reimbursement of the tree cut compensation amount, paid to farmers and land owners during the execution of work. The aforesaid observation was made by the Bench consisting of Dr. M.P. Ravi Prasad Additional Commissioner of Commercial Taxes Member (State) and Kiran Reddy T Additional Commissioner of Customs and Indirect Taxes Member (Central), when the applicant sought an advance ruling on the question as to the applicability of GST upon reimbursement of tree cut compensation amount, paid to farmers and land owners during the course of execution of work.
The West Bengal Authority for Advance Ruling (AAR) has recently while deciding upon an application filed before it, ruled that sewage and waste collection, treatment & disposal and other environmental protection services are taxable at 18% Integrated Goods and Services Tax, IGST (9% CGST + 9% SGST). The said ruling was made by the Bench when the applicant, Simoco Telecommunications (South Asia) Limited, made an application under sub-section (1) of Section 97 of the Goods and Services Tax Act, 2017 (GST Act) and the rules made there under, raising questions vide Serial Number 14 of the application in FORM GST ARA-01, seeking advance ruling on the classification of the goods/services as per the work order and the applicable GST.
Upon perusing the materials submitted by the appellant and hearing its contentions, it was observed by the authority Bench of Brajesh Kumar Singh and Joyjit Banik that, waste collection services and waste treatment and disposal services fall under SAC 9994, having Group 99942 and 99943 respectively, and further that sewage and waste collection, treatment and disposal and other environmental protection services is taxable at 18% IGST.
In a recent application filed before it, the Uttarakhand Authority for Advance Ruling (AAR), has ruled that GST is to be paid on value of Free Diesel filled in vehicle. The aforesaid observation was made by the Bench consisting of Anurag Mishra and Rameshwar Meena, when an application was filed before it by the applicant M/s Gurjinder Singh Sandhu (Proprietor M/s New Jai Hind Transport Service), seeking advance ruling on the classification of goods or services, the applicability of a notification issued under the provisions of the Act, determination of the value of supply of services, and the determination of the liability to pay tax on any goods or services, wherein hearing the contentions of the applicant, the Bench finally ruled that the value of free diesel filled by the service recipient will be subjected to the charge of GST, by adding the free value diesel in the value of GTA service, under the Central Goods and Services Tax Act, 2017 & Uttarakhand Goods and Service Tax Act, 2017.
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