This weekly round-up analytically summarises the key stories related to the Goods and Service Tax Authority for Advance Ruling (AAR) reported at Taxscan.in during the previous week from May 13th to 20th, 2023.
The Tamil Nadu Authority for Advance Ruling (TNAAR) ruled that renting warehouses to store agricultural produce is covered under the entry ‘Rental or leasing services involving own or leased non-residential property’ and attracts 18% Goods and Services Tax (GST).
The panel of N. Usha and R. Goplasamy observed that the rental income received by the applicant from Renting Warehouse to store agricultural produce is a consideration for supply and the activity is covered under the meaning of supply of services in terms of Section 7 of the CGST Act.
Further observed that renting a warehouse to store agricultural produce is considered as supply of service, and the same is not classifiable as “loading, unloading, packing, storage or warehousing of agricultural produce, with ‘Nil’ GST Rate under Sl. No. 54(e) of SAC 9985 of the Notification-11/2017- C.T. (Rate) dated 28th June 2017.
The Gujarat Authority of Advance Ruling (AAR) has held that the Architectural Consultancy Service provided by Surat Municipal Corporation (SMC) is eligible for Goods and Service Tax.
It was determined that the pure services provided to the local authority by way of any activity in relation to a function entrusted to a Municipality under Article 243 W of the Constitution of India is exempt from GST.The supply by the applicant to SMC being a pure service meets the criterion set out in the Notification No.12/2017-CT(Rate) dated 28.6.2017.
The two-bench member of authority Miland Kavatkar and Amit Kumar Mishra ruled that the ‘Architectural Consultancy Service’ provided by the applicant to Surat Municipal Corporation [SMC] construction of SMIMER Hospital & College Campus is covered under entry no. 3 of notification No. 12/2017-Central (Rate) dated 28.6.2017 & thus is exempt from GST”.
The Karnataka Bench of the Authority for Advance Rulings (AAR) has recently ruled that, no Goods and Services Tax is payable on the price difference of purchase and selling of second-hand gold jewellery after melting.
The AAR bench of Dr M P Ravi Prasad and Kiran T Reddy observed that, the applicant had not satisfied all the conditions required to avail the benefit as per Rule 32(5) of Central Goods and Services Tax Act. It was also noted that, “it is clear that tariff heading 7113 pertains to jewellery and parts thereof of precious metal which includes gold jewellery, and tariff heading 7108 pertains to gold in unwrought or semi-manufactured forms such as gold lumps or irregular shapes of gold. Gold jewellery are a distinct category of article having distinct characteristics and is not same as gold lumps. When the applicant melts the gold jewellery into gold lumps, the nature of goods changes in as much as the characteristics of the articles and the classification changes. Since the processing done by the applicant changes the nature of goods, they do not satisfy the second condition mentioned supra at para 10.2 and hence not eligible to avail the benefits of Rule 32(5) of CGST Rules, 2017.” It was thus ruled that, “The applicant purchasing second hand gold in the form of jewellery / parts of jewellery, from unregistered individuals and selling to registered / unregistered dealers, after melting the same, in the form of lumps / irregular shapes of gold, cannot pay GST on the margin difference between the sale price and purchase price as stipulated in Rule 32(5) of CGST Rules, 2017.” The HSN Code for Old Gold Jewellery is 7113 and after melting into gold lumps or irregular shapes of gold the HSN Code is 7108, the authority bench observed.
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