This Round-Up analytically summarises the key stories related to the Goods and Service Tax Authority for Advance Ruling (AAR) reported at Taxscan.in during June 24 to 30, 2023.
The Authority for Advance Ruling (AAR), Chhattisgarh bench has held that Goods and Services Tax (GST) at the rate of 5% is applicable on the export of pre-packaged & labelled rice up to 25 Kilograms.
The authority comprising Smt. Sonal K. Mishra, Joint Commissioner and Shri Shravan Kumar Bansal, Additional Commissioner clarified that GST shall also be levied on the supply of pre-packaged and labeled rice up to 25 kg to exporters on a “bill to ship to” basis. The applicable tax rate for such transactions will be 5%, i.e., 2.5% Central Goods and Services Tax (CGST) and 2.5% State Goods and Services Tax (SGST) or 5% Integrated Goods and Services Tax (IGST), depending on the circumstances, the authority held. Moreover, as per its proceedings under Section 98 of the Chhattisgarh Goods and Services Tax (GST) Act, 2017, the authority also held that GST will be imposed on the supply of pre-packaged and labeled rice weighing up to 25 kg to the factories of exporters at a rate of 5%, which comprises 2.5% CGST and 2.5% SGST or 5% IGST, depending on the situation. The authority also reminded that exporters are required to comply with the provisions specified in Notification No. 01/2017-CT (Rate)/ Integrated tax (Rate) dated 28.6.2017, as amended, effective from 18.7.2022.
The Authority for Advance Ruling (AAR), Chhattisgarh has held that the unutilised balance of Input Tax Credit (ITC) lying in the Electronic Credit Ledger (E-Credit Ledger) can be transferred on the merger of distinct persons as specified in Section 25(4) of the Central Goods and Services Tax (CGST) Act, 2017 i.e., across two distinct GST Identification Numbers (GSTINs) with the same Permanent Account Number (PAN).
The Authority consisting of Smt. Sonal K. Mishra, Joint Commissioner and Shri Shrawan Kumar Bansal, Additional Commissioner ruled that the transfer of unutilised balance in the E-credit ledger on the merger of distinct persons, as specified in Section 25(4) of the CGST Act, 2017, was permissible. This meant that in cases where two distinct GSTINs with the same PAN were merged within the state, the unutilised ITC could be transferred. However, the authority clarified that there was no specific provision for the transfer of unutilised balances between distinct persons without following the formal merger process. While Rule 87(14) allowed for the transfer of unutilised balances in the cash ledger between distinct persons, there was no corresponding provision for the transfer of balances in the E-credit ledger, the authority added. In result, the ruling sought by the applicant on the issue of transfer to unutilised balance of ITC lying in the E-credit ledger is not maintainable. Accordingly, the application filed by the applicant for advance ruling is rejected, being out of the scope of “advance ruling” as stipulated under Section 97(2) of the CGST Act.
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