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 weeks of 8th to 26th of November, 2022.
With M/s Tara Genset Engineers seeking an advance ruling on the liability to pay tax on services for the cost of diesel for running DG rental services, the Authority for Advance Ruling, Uttarakhand (AAR) , has ruled that GST is applicable on the cost of diesel incurred for running diesel generator set in the course of DG rental services. With Shri Pankaj Rayel on behalf of the applicant contending that as per section 15 of CGST act 2017, the value of supply of good or service or both shall be the transaction value which is the price actually paid, the AAR Uttarakhand comprising of Shri A Nurag Misra and Shri Rameswar Meena ruled that GST was applicable on the cost of diesel for running DG rental services, finding that the cost of diesel incurred for running DG set in the course of providing DG rental service was nothing but additional consideration for the supply of DG set on rent as per S.15 of CGST Act 2017.
The Maharashtra appellate Authority of Advance Ruling (AAAR), has recently, in an application filed before it, held that Input Tax Credit (ITC) cannot be availed by Housing Society, providing works contract service for repairs, renovations & rehabilitation works. The aforesaid observation was made by the AAAR when an appeal was filed before it by M/s Mahavir Nagar Shiv Srushti, a co-operative housing society, who had constructed a building on the plot allotted by MHADA. With the appellant seeking advance ruling on the issue as to whether the applicant is eligible to claim the ITC on input and inputs services for repairs, renovations & rehabilitation works carried out by the Applicant, the MAAR held that appellant was ineligible for ITC and it is being aggrieved by this order that the appellant had filed present appeal before the AAAR of Maharashtra. However, the AAAR bench comprising of Shri Ashok Kumar Mehta, (Central Tax member) and Shri Rajeev Kumar Mital, (State Tax member), upholding the advance ruling passed by MAAR, held the Appellant-society to be ineligible to avail ITC of the tax paid on the works contract services, observing that Appellant didn’t fulfil the conditions laid down in section 17 (5) of the Central Goods and Service Tax Act 2017 and didn’t provide any works contract service.
The Appellate Authority for Advance Rulings (AAAR), Telangana bench, has ,while upholding an AAR order, held that no GST exemption is available on medical insurance premiums taken to provide health insurance to employees, pensioners, and their family members. The aforesaid observation was made by the AAAR when an appeal was filed before it by the applicant M/s. Hyderabad Metropolitan Water Supply and Sewerage Board. The applicant having paid Medical insurance premium taken to provide health Insurance to the employees, pensioners and their family members and Vehicle insurance Policy taken to provide Insurance to the vehicles owned by the Board, claimed themselves to be exempt from paying GST in view of the Entry No. 3 of the Notification Number 12/2017 – Central Tax (Rate), dated 28th June, 2017, wherein it was provided 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 Governmental 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 entrusted to a Municipality under Article 243W of the Constitution, will attract NIL rate of GST. However, the AAAR Bench concluded that the insurance services for employees and employees family members received by the applicant is not in direct and proximate relation to water supply and sewerage related function entrusted under Article 243W, and hence that the supply received by the applicant does not fall under Sl.No 3 of Central tax (rate) notification no 12/2017 and are not therefore exempted.
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