This Annual round-up analytically summarizes the key Indirect Tax-Goods and Services Tax rulings of the Authority for Advance Rulings ( AAR ) and Appellate Authority for Advance Ruling ( AAAR ) reported at Taxscan.in during 2024.
The Uttar Pradesh Authority for Advance Ruling (AAR) ruled that 18% GST is applicable for F-18 drugs used for cancer diagnosis.
A Two-Member Bench of the Authority comprising Amit Kumar, Joint Commissioner (Central Tax) and Harilal Prajapati, Joint Commissioner (State Tax) observed that “It can be seen that F-18 products are essentially radioactive isotopes which are used in radiopharmaceutical imaging such as PET scanning. Although they are used as a pharmaceutical product for the diagnosis and detection of various diseases, 18F FDG and other 18F radiopharmaceutical products are compounds of the radioisotope 18F. Heading 2844 of the Tariff covers radioactive isotopes and their compounds. 18F-FDG being a compound of the radioisotope 18F, it would fall under the heading 2844.”
The Gujarat Authority for Advance Ruling has determined that the supply of aircraft should attract a 5% Goods and Service Tax (GST).
“Therefore, since the principal supply is the supply of goods (aircraft), it is classified under CTH 8802 and attracts a GST of 5% as per notification No. 1/2017-IT (Rate) dated 28.6.2017 (entry no. 2441)”, the bench observed.
The two-member bench of the Authority of Advance Ruling, Rithesh Raval (member SGST) and Amit Kumar Mehra (member SGST), held that the supply of aircraft should attract a 5% Goods and Service Tax (GST).
The West Bengal bench of the Authority for Advance Ruling ( AAR ) observed that printing and supply of textbook to Jharkhand Council of Educational Research and Training ( JCERT ) was supply of goods
The two member bench of the tribunal comprising Dr. Tanisha Dutta ( member ) and Joy Jit Banik ( member ) concluded that printing and supply of textbooks to JCERT shall be treated as supply of goods.
The West Bengal bench of the Authority for Advance Ruling ( AAR ) observed that printing and supply of comprehensive report, progress card to education department, Government of Assam was supply of services
The two member bench of the tribunal comprising Dr Tanisha Dutta ( member ) and Joy Jit Banik ( member ) concluded that Printing and supply of Comprehensive Report Progress Card to the Education Department, Government of Assam would be treated as supply of services.
The West Bengal bench of the Authority for Advance Ruling ( AAR ) observed that printing and supply of notebook was supply of goods
The two member bench of the tribunal comprising Dr Tanisha Dutta ( member ) and Joy Jit Banik ( member ) concluded that Printing and supply of notebook would be treated as supply of goods
The West Bengal bench of the Authority for Advance Ruling ( AAR ) observed that Input Tax Credit ( ITC ) admissible on goods purchased from outsourced vendors for Sale and buy back transactions.
The two member bench of the tribunal comprising Dr Tanisha Dutta ( member ) and Joy Jit Banik ( member ) concluded that in case of sale and buyback transactions, the input tax credit was admissible in respect of goods purchased from outsourced vendors, when payment was settled through book adjustment against the debt created on outward supplies to those vendors.
The Gujarat Authority for Advance Ruling ( AAR ) ruled that ITC ( input tax credit ) can be availed on rooftop solar systems with installation and commissioning as solar roof tops can be classified under plant and machinery.
A Two-Member Bench of the Authority comprising Amit Kumar Mishra and Riddhesh Raval observed that “It is therefore clear that the roof solar plant, affixed on the roof of the building is not embedded to earth. Accordingly it is not an immovable property but a plant and machinery, which is utilized to generate electricity which is further solely and captively used in the manufacture of welding wires. The applicant is engaged in the business of supply of welding wires on payment of GST at the applicable rates.
The West Bengal bench of the Authority for Advance Ruling ( AAR ) observed that supply of services for removal of hump by dredging at Najafgarh Drain as awarded by Irrigation and Flood Control Department is exempt from Goods and Service Tax ( GST )
The two member bench of the tribunal comprising Dr. Tanisha Dutta (member) and Joy Jit Banik (member) observed that Supply of services being undertaken by the applicant for removal of hump (silt/ earth/ manure/ sludge etc.) by dredging at Najafgarh Drain as awarded by the Irrigation and Flood Control Department, Government of Delhi shall be covered under Sl. No. 3A of Notification No. 12/2017- Central Tax (Rate) dated 28.06.2017 and therefore shall be exempted from payment of tax.
The West Bengal bench of the Authority for Advance Ruling (AAR) observed that services of leasing land for industrial purposes cannot be treated as an exempt supply
The two member bench of the authority comprising Dr.Tanisha Dutta ( member) and Joyjith Banik ( member) conclude that the services of leasing of the land for industrial purposes by SMPK to the applicant is found not to be covered under entry 41 of Notification No. 12/2017 Central Tax (Rate) dated 28.06.2017 and therefore cannot be treated as an exempt supply.
The Telangana Authority of Advance Ruling (AAR) observed that GST is payable for providing renting services for buildings to government social welfare college boys hostel and in municipalities.
A Two-Member Bench of the AAR comprising S.V. Kasi Visweswara Rao, Additional Commissioner State Taxes and Sahil Inamdar, Additional Commissioner Central Taxes observed that “Under serial no. 3 of Notification No. 12/2017 pure services provided “in relation to any function” entrusted to a municipality under Article 243W of the Constitution of India is eligible for exemption from GST. Clearly the exemption should be directly related to the functions enumerated under Article 243W of the Constitution of India i.e., those functions listed under 12th schedule. The Schedule 11 to the constitution of India contains “Education including primary and secondary schools” at serial no. 17.”
In a recent ruling, the Telangana State Authority for Advance Ruling (AAR) has ruled that the All India Institute of Medical Sciences (AIIMS) is not eligible to claim Goods and Services Tax ( GST ) exemption on pure services received from vendors.
The AAR decision highlights the importance of precise understanding and interpretation of GST provisions. AIIMS, despite its standing as a premier healthcare and education institution, has been held liable for GST on specific services, highlighting the nuanced nature of tax regulations in India.
The Gujarat Authority for Advance Rulings (AAR) has ruled that deducting money from employees’ salaries to pay a canteen services provider (CSP) would not attract the Goods and Services Tax (GST).
The AAR ruled that ITC for GST on canteen services is obligatory under the Factories Act and there is no GST on employee’s payment for canteen service.
The Rajasthan bench of the Authority for Advance Rulings ( AAR ) has established the applicability of Goods and Services Tax ( GST ) on the rent of a residential property when it is utilized for commercial purposes by a lessee registered for GST. The ruling arose in the case of Deepak Jain, who leased his property to a private limited company engaged in back-office operations.
In response to specific queries seeking advance rulings, the AAR clarified that, as per the notification dated July 13, 2022, the premises would not qualify as a residential dwelling due to its commercial use. The nature of the property, in the eyes of GST, is intricately linked to the actual use and duration of stay by the occupants, emphasizing the evolving intricacies in tax implications based on property utilization.
The West Bengal bench of the Authority for Advance Ruling (AAR) observed that printing and supply of comprehensive report, progress card to education department, Government of Assam was supply of services
The two member bench of the tribunal comprising Dr Tanisha Dutta (member) and Joy Jit Banik (member) concluded that Printing and supply of Comprehensive Report Progress Card to the Education Department, Government of Assam would be treated as supply of services.
The West Bengal bench of the Authority for Advance Ruling (AAR) observed that Printing and supply of Bilingual parental calendar to Jharkhand Education Project Council ( JEPC ) was supply of service
The two member bench of the tribunal comprising Dr Tanisha Dutta (member) and Joy Jit Banik (member) concluded that Printing and supply of “Bilingual Parental Calendar” to JEPC would be treated as supply of services.
The Telangana Authority of Advance Ruling (AAR) ruled that GST exemption allowable on supply of dal to departments for women, children, disabled and senior citizens.
A Two-Member Bench comprising S.V. Kasi Visweswara Rao and Sahil Inamdar observed that “The goods supplied by the applicant through the Nodal Agency – Hyderabad Agricultural Co-operative Association Limited ( HACA ) does not attract GST provided the following conditions are fulfilled: i. The packaged commodities are bearing a declaration ‘not for retail sale”, ii. The purchase is made directly from the manufacturer or from an importer or from wholesale dealer iii. The purchase is made for use by that institution and not for commercial or trade purpose”.
In a recent decision, the Rajasthan bench of the Authority for Advance Ruling (AAR) observed that 12% Goods and Service Tax (GST) shall be Applicable on Services of Disposal and Treatment of Bio Medical Waste collected from Clinical Establishment.
The AAR bench of Mahipal Singh (Central Tax member) and Mahesh Kumar Gowla (State Tax member ) held that the service of disposal and treatment of Bio Medical obtained from clinical establishment (9994) was made taxable vide Notification No. 03/2022- Rate) dated 13.07.2022 (effective from by amending Notification No. 11/201 ICI (Rate) dated 28.06.2017 with a rate of 6% (CGST). Thus, 12% GST (6% SGST + 6% CGST) was imposed on such services. Thus, the registered dealer is liable to pay GST on the aforesaid service from
The Rajasthan Authority for Advance Ruling held that State Due Tax related to the RIPS scheme was not covered under section 97(2) of the Central Goods and Service Tax Act, 2017. Therefore, the authority rejected the advance rule application.
The two member bench of Authority of Advance Ruling, Mahipal Singh (Central Member) and Mahesh kumar Gowda (State Member )ruled that State Due Tax related to RIPS scheme not covered under section 97(2) of the Central Goods and Service Tax Act,2017. Therefore the authority rejected the advance rule application. Therefore the bench rejected the application of the applicant.
In a recent ruling, the Karnataka bench of the Authority for Advance Ruling (AAR) determined that fees for nursing and psychology training services do not qualify for Goods and Service Tax ( GST ) exemption, as they are deemed non-healthcare related.
However, the two-member bench of Dr.M.P.Ravi Prasad and Kiran Reddy. T, held that “GST is not exempted on the fees collected from nurses and psychologists for imparting practical training”.
The two member bench of West Bengal Goods and Services Tax (GST) Authority for Advance Rulings ( Aar ) ruled that a registered person is eligible to avail credit of input tax if all the conditions laid down in section 16 of the Goods and Services Tax ( GST ) Act, 2017 get fulfilled and such credit is not restricted under sub-section (5) of section 17 of the Act GST Act.
The two member bench comprising Dr Tanisha Dutta ( Joint Commissioner, CGST & CX ) and Joyjit Banik ( Senior Joint Commissioner, SGSTA ) held that registered person is eligible to avail credit of input tax if all the conditions laid down in section 16 of the GST Act get fulfilled and such credit is not restricted under sub-section (5) of section 17 of the GST Act.
The Karnataka bench of the Authority for Advance Ruling ( AAR ) determined that Goods and Service Tax ( GST ) exemption applicable to food, medicines, and consumables for In-Patients under Composite Supply applies to healthcare services provided by establishments.
The two-member bench of Dr.M.P Raviprasad and Kiran Reddy. T observed that the supply of medicines, drugs and consumables used in the course of providing health care services to in-patients during the course of diagnosis and treatment would be considered as “Composite Supply” of health care services qualifying for exemption from GST.
A two member bench of the West Bengal Authority for Advance Ruling Goods and Services Tax (AAR) held that settlement of mutual debts through book adjustment is a valid mode of payment under the Goods and Service Tax (GST) Act, 2017. The authority observed that Input Tax Credit (ITC) is allowable for goods purchased from external vendors when payment is settled through book adjustment in sale and buyback transactions.
The bench comprising Tanisha Dutta (Joint Commissioner, CGST & CX ) and Joyjit Banik ( Senior Joint Commissioner, SGST ) held that settlement of mutual debts through book adjustment is a valid mode of payment under the GST Act. Recipients can pay the supplier by way of setting book debt since the provision of the Act has not put any restriction in this regard. Therefore, claiming credit of Input Tax Credit ( ITC ) cannot be denied on the sole ground that consideration is paid through book adjustment.
The Karnataka Authority for Advance Ruling ruled that supply of tree pruners to farmers are exempted from Goods and Service Tax.
Therefore The two member bench of Authority of Advance Ruling, MP Raviprasad ( Central Member ) and Kiran Reddy ( State Member )ruled that supply of tree pruners to farmers are exempted from Goods And Service Tax .
The West Bengal Authority for Advance Ruling (AAR) of Goods and Services Tax matters has ruled that supply of services which does not involve any supply of goods can be regarded as pure services.
The two member bench comprising Tanisha Dutta (Joint Commissioner, CGST & CX ) and Joyjit Banik ( Senior Joint Commissioner, SGST ) held that “term “pure services‟ has not been defined under the GST Act. However, a bare reading of the description of services as specified in serial number 3 above denotes that supply of services which does not involve any supply of goods can be regarded as pure services. The said entry serial, therefore, specifically excludes works contract services or other composite supplies involving supply of any goods. On the other hand, to qualify to be a supply under serial number 3A above, a composite supply, subject to fulfillment of other conditions as specified in the said entry, would be such that the maximum value of involvement of goods is less than 25% of the total value of the said composite supply.”
The Karnataka Authority for Advance Ruling held that supply of manpower services to zila panchayat and taluk panchayat attracts 18% Goods And Service Tax ( GST ).
The two member bench of Authority of Advance Ruling, M.P Raviprasad ( Member ) and Kiran Reddy T ( Member ) held that supply of manpower services to zila panchayat and taluk panchayat attracts 18% Goods And Service Tax ( GST )
The Andhra Pradesh Authority for Advance Ruling (AAR) observed that GST is levied on export of pre-packaged and labelled rice upto 25 kgs to foreign buyer.
A Two-Member Bench comprising K. Ravi Sankar and B. Lakshmi Narayana observed that “In the instant case, the ultimate buyer is not present and the commodity is being pre-packed for an unknown ultimate buyer. The buyer from the applicant is re-selling the same to another buyer be it export or indigenous. This advance ruling authority agrees with the observation regarding the applicability of GST on “prepackaged and labelled” irrespective of the fact that whether it is for domestic sale or exported outside the country.”
The Rajasthan Authority for Advance Ruling while rejecting the application for advance ruling observed that application for sought out taxability of affiliation fee collected by the applicant from the affiliated college pending before the adjudicating authority of CGST
The two member bench of Authority of Advance Ruling, Mahipal Singh (Central Tax) and Mahesh Kumar Gowla (State Taxes) observed that “applicant has been issued notice for the period 2017-2018 to 2021-2022 om taxability of affiliation fee collected by the applicant from the affiliated college,which id pending for adjudication “
The Karnataka Authority for Advance Ruling disposed of the application for Advance ruling with respect to Goods and Service Tax on landowners due to withdrawal by the applicant.
The two member benches of Authority of Advance Ruling, Kiran Reddy T (Member) and DR. M V Ravi Prasad ( Member ) disposed of the application on account of withdrawing the application by applicant.
The two member bench of West Bengal Goods and Services Tax ( GST ) Authority for Advanced Rulings ( Aar ) ruled that a registered person is eligible to avail credit of input tax if all the conditions laid down in section 16 of the Goods and Services Tax ( GST ) Act, 2017 get fulfilled and such credit is not restricted under sub-section (5) of section 17 of the Act GST Act.
The two member bench comprising Dr Tanisha Dutta ( Joint Commissioner, CGST & CX ) and Joyjit Banik ( Senior Joint Commissioner, SGSTA ) held that registered person is eligible to avail credit of input tax if all the conditions laid down in section 16 of the GST Act get fulfilled and such credit is not restricted under sub-section (5) of section 17 of the GST Act.
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