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 November 1 to November 7, 2021.

Prodip Nandi

The West Bengal Authority of Advance Ruling (AAR) ruled that payment of salary/wages by suppliers cannot be excluded from the value of supply for the purpose of Valuation under GST. The coram of Brajesh Kumar Singh and Joyjit Banik held that the applicant thus engages contract labor towards the supply of manpower services as required by his clients (recipient of services). Rule 33 of the CGST/WBGST Rules, 2017 clearly speaks that one of the conditions that have to be satisfied for exclusion of expenditure or costs from the value of supply which has been incurred by a supplier as a pure agent if the services procured by the service provider, as a pure agent of the recipient of service, from the third party are in addition to the services which he provides on his own account. Admittedly, in the instant case, the applicant first enters into an agreement with his client for supplying manpower services and subsequently engages different work-men (third party) at the place of business of his clients and thereby supplies manpower services only.

Vinayak Singh

The West Bengal Authority of Advance Ruling (AAR) ruled that no GST payable on the supply of Services to Howrah Municipal Corporation for lifting, removing of garbage accumulated from vats, dumping yards, containers. The coram of Brajesh Kumar Singh and Joyjit Banik held that applicant‟s supply to the Howrah Municipal Corporation for lifting and removing of daily garbage etc. accumulated from the vats, dumping yards, containers, and other places on the roads, lanes, and bye-lanes of HMC area is exempt from payment of tax vide entry serial number 3 of the Notification No. 12/2017 – Central Tax (Rate) dated 28/06/2017 (corresponding West Bengal State Notification No. 1136 – FT dated 28/06/2017), as amended from time to time.

M/s Kamdhenu Agrochem Industries

The Maharashtra Authority of Advance Ruling (AAR) held that no Separate GST Registration is required for selling goods before clearing them for home consumption from the port of import. The coram of Rajiv Magoo and T.R. Ramnani ruled that consumption from the port of import, the place of supply shall be the place from where the applicant makes a taxable supply of goods which, in this case, will be the Maharashtra Office. Hence, the applicant can supply the goods on the basis of invoices issued by the Maharashtra Office, and therefore they need not take separate registration in importing States other than Maharashtra.

M/s. Meerabai Tukaram Borade

The Maharashtra Authority of Advance Ruling (AAR) ruled that no GST exemption on renting of property to Govt for under-privileged Girl. The coram of Rajiv Magoo and T.R. Ramnani ruled that as the Applicant is not registered under GST and provides services to Social Welfare Department (Samaj Kalyan Department), a Department of State Government, then TDS notification issued under section 51 would be applicable for deduction of TDS.

Vishal Cooperative Housing Society Limited

The Maharashtra Authority of Advance Ruling (AAR) ruled that the Society claiming GST Exemption of Rs.7500 cannot avail Input Tax Credit (ITC) on input services. The coram of Rajiv Magoo and T.R. Ramnani ruled that the provisions of Section 17 (2) will be applicable in the present case in as much as when goods or services or both are used by the applicant partly for effecting taxable supplies under the GST Act and partly for effecting exempt supplies under the said Acts, the amount of credit shall be restricted to so much of the input tax as is attributable to the said taxable supplies.

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