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 22 to November 27, 2021.
The Karnataka Appellate Authority of Advance Ruling (AAAR) ruled that the 18% GST Exigible on Services Provided by Airbus Group as it qualifies as Intermediary services.
The Tamil Nadu Authority of Advance Ruling (AAR) ruled that no GST concessional rates are applicable to activities of manufacture, supply of Fortified Rice Kernels till September 30, 2021. The coram of Members K.Latha and T.V.Venkatesh held that FRK is not directly supplied to the economically weaker sections, but only after blending with rice grains in designated rice mills. The Notification No. 39/2017-C.T.(Rate) dated 18.10.2017 provided the concessional rate to Food Preparation’ subject to fulfillment of conditions at Column (4) before such amendment. Therefore in our view, the concessional rate under Notification No.39/2017 C.T. (Rate) for the Period 18.10.2017 to 30.09.2021 is not available to the applicant for reasons, that FRK is not a food preparation put up in unit containers for free distribution to economically weaker sections and Applicants are not involved in free distribution of FRK to Economically weaker sections.
M/s. Amazon Seller Services Private Limited
The Customs Authority of Advance Ruling (AAR) ruled that the concessional rate of basic customs duty of 7.5% payable on smart plugs. The coram of Manoj Kumar Hessa ruled that Smart plugs of model no. C2YY3N are rightly classifiable under sub-heading 85371000 of the first schedule to the Customs Tariff Act, 1975. The said smart plugs would be eligible to claim the benefit of serial number 490 of notification no. 50/2017-Cus., dated 30.06.2017.
Rotary Club of Bombay Queen City
The Maharashtra Authority of Advance Ruling (AAR) ruled that the activity of collecting contributions, spending towards meeting, and administrative expenditures only, is ‘business’ under GST. The coram of members Ranjiv Magoo and T.R.Ramnani ruled that the activity of the applicant i.e. collecting contributions and spending towards meeting and administrative expenditures only, is ‘business’ as envisaged u/s 2(17) of the CGST Act, 2017.
The Maharashtra Authority of Advance Ruling (AAR) ruled that the Amount collected as membership subscription, admission fees from members by Rotary Club to meet expenses to be considered as supply of services under GST.
M/s. Hitech Print Systems Limited
The Telangana Authority of Advance Ruling (AAR) held that no GST on printing of pre-examination material for educational boards or Universities. The coram of Raghu Kiran and S.V. Kasi Visweswar Rao held that printing of pre-examination material items like Question Papers, OMR Sheets [Optical Mark Reading], Answer Booklets with/without OMR, Practical Answer Booklets, Hall Tickets and other examination material specific to various educational boards/Universities amounts to the provision of service and the same is exempt from GST levy.
The Telangana Authority of Advance Ruling (AAR) ruled that GST payable on telecom services provided by Airtel to Greater Hyderabad Municipal Corporation. The coram of Raghu Kiran and S.V. Kasi Visweswara Rao ruled that the applicant is providing data and voice services to GHMC and to the employees of the municipalities and general purpose for office and administrative purposes. Thus there is no direct relation between the services provided by the applicant and the functions discharged by the GHMC under Article 243W read with schedule 12 to the Constitution of India. Therefore these services do not qualify for exemption under Notification No. 12/2017.
The Telangana Authority of Advance Ruling (AAR) held that Input Tax Credit (ITC) is not allowed to be claimed if concessional rate of 5% GST is opted. The coram of Raghu Kiran and S.V. Kasi Visweswar Rao held that ITC is not allowed to be claimed if concessional rate of 5% GST is opted to be paid on service supplied under Sl.No.8(ii)(b) of Notification No.11/2017. Input tax credit is not allowed on any goods or services received by the applicant if tax is paid at the rate of 5% GST.
The Telangana Authority of Advance Ruling (AAR) ruled that 18% GST on Design, supply, installing, testing & commissioning of train collision avoidance system in locomotives. The coram of Raghu Kiran and S.V. Kasi Visweswara Rao held that the applicant against the letter of acceptance(LOA) of the South Central Railway is a composite supply and the rate of tax applicable is the rate at which the principal supply has to be taxed i.e. Electrical signalling equipment with HSN code ‘8530’. This commodity was made taxable at the rate of 9% under CGST & SGST respectively vide Notification No. 41/2017 dated: 14.11.2017. Therefore the supply of Train Collision Avoidance System (TCAS) is taxable at the rate of 9% under CGST & SGST respectively.
Support our journalism by subscribing to Taxscan AdFree. Follow us on Telegram for quick updates.
