AAR Weekly Round-Up

This weekly round-up analytically summarizes the key stories related to the Authority of Advance Ruling (AAR) reported at Taxscan.in during the previous week from October 25 to October 30, 2021.

Joshna Candesh Shah

The Tamil Nadu Authority of Advance Ruling (AAR) ruled that 18% GST payable on Children Scooter, Activity Ride-on, Smart Tri-cycle, and Kick Scooter.

“We find that in the case at hand, the products are designed to develop gross motor skills in as much as they are designed to use the physical force and can be enjoyed by either pedaling or by pushing with the leg and also fine motor skills like blinking, discrete tasks of switching on/off the music/light, etc provided through the inbuilt electronic circuit, powered with the electrical energy (battery)/ induction force. Both the functions of the toys are targeted to develop a certain skill while amusing the child playing with it. Therefore, we hold that the products in hand are Electronic Toys’ and the applicable GST rate is as per Sl.No 440 of Schedule III of the Rate Notification,” the AAR said.

Deccan Wheels purchases

The Maharashtra Authority of Advance Ruling (AAR) ruled that Input Tax Credit cannot be claimed on Indirect Expenses like rent, commission, professional fees, telephone incurred for purpose of business.

The coram of Rajiv Magoo and T.R.Ramnani observed that the concessional rate under the notification shall not apply, if the supplier of such goods has availed input tax credit as defined in clause (63) of section 2 of the Central Goods and Services Tax Act, 2017, CENVAT as defined in CENVAT Credit Rules, 2004 or the input tax credit of Value Added Tax or any other taxes paid, on such goods.

Geetee Tours Pvt. Ltd.

The Maharashtra Authority of Advance Ruling (AAR) ruled that GST payable on Vehicles registered in the Tourist category for carrying Covid-19 patients for Medical Treatment.

The coram of Rajiv Magoo and T.R.Ramnani observed that even though the applicant has submitted that the subject supplies would fall under entry no. 6 of twelfth schedule article 243W of the constitution i.e. “Public health, no evidence or documents have been submitted to substantiate their claims for exemption. Further, the only SERVICE PURCHASE ORDER’, submitted by the applicant mentions the description of service as “Adv for ambulance-like Innova covid 19”. The applicant has not submitted that they have provided ambulance service for the covid patients. Neither have they submitted anything on record to show that the Innova vehicles supplied by them have been converted into ambulances or registered as such nor have they submitted proof of having transported only covid 19 patients for medical treatment. Further, the vehicles are not registered with RTO for use as ambulances and they are registered as tourist vehicles.

M/S S.B.Reshellers Pvt. Ltd.

The Maharashtra Authority of Advance Ruling (AAR) ruled that 18% GST payable on the Reshelling of old Sugar Mill Rollers.

GRB Dairy Food Pvt. Ltd.

The Tamil Nadu Authority of Advance Ruling (AAR) ruled that the no Input Tax Credit (ITC) is available to manufacturers who purchased Dubai tickets, gold vouchers, home appliances for rewarding retailers who meet targets.