Complete Case Digest of AAR Kerala

Authority for Advance Ruling (AAR) and Appellate Authority for Advance Ruling (AAAR) rulings are relevant for businesses in India that are engaged in the supply of goods or services. These authorities provide clarity on various provisions of the Goods and Services Tax (GST) law and help businesses make informed decisions about tax liability, compliance, and other related matters.

An AAR ruling is a written decision issued by the Authority for Advance Ruling, which is a quasi-judicial body that helps businesses determine their GST liability in advance. Businesses can approach the AAR to seek clarity on any question of law or fact that arises in relation to GST. The AAR examines the facts of the case, interprets the law, and issues a ruling that is binding on the applicant and the tax authorities.

A AAAR ruling is a decision issued by the Appellate Authority for Advance Ruling, which is a higher body that hears appeals against AAR rulings.

This post summarises all the AAR and AAAR Rulings of the Kerala Authority reported at taxscan.in.

Technical Testing and Analysis Services comes under Taxable Services In Re: M/s CGR Gold Trading CITATION:   2020 TAXSCAN (AAR) 162

The Kerala Authority for Advance Ruling (AAR) held that the technical testing and analysis services under Goods and Services Tax come within the purview of other professionals, technical and business services. So the GST is applicable to other professional and technical business services when the aggregate turnover to be computed on all India bases in a financial year exceeds the threshold limit of RS 20 lakhs.

Diagnostic Centres need not obtain GST Registration In Re: M/s Medivision Scan and Diagnostic Research Center CITATION:   2019 TAXSCAN (AAR) 124

The Kerala State Authority for Advance Rulings (AAR) has ruled that the diagnostic centres, being part of health care services need not be registered under the Goods and Services Tax (GST).

The authority observed that the diagnostic centres are organised facilities to provide diagnostic procedures such as radiological investigation supervised by a radiologist and clinical laboratory services by laboratory specialists usually performed through referrals from physicians and other health care facilities.

KMRL is a ‘Government Authority’, not liable to pay GST on funds received from Kerala Govt. for paying cost of water metro project In Re: M/s. KOCHI METRO RAIL LTD CITATION:   2019 TAXSCAN (AAR) 125

The Kerala Authority of Advance Ruling (AAR) ruled that Kochi Metro Rail Limited (KMRL) is a “Government Authority” and it is not liable to pay Good and Service Tax (GST) on Funds received from Kerala Government for paying the cost of water metro project.

12% GST on Construction Services of low-cost Housing Units for flood-affected individuals in Kerala In Re: M/s HABITAT TECHNOLOGY GROUP CITATION:   2020 TAXSCAN (AAR) 171

The Kerala Authority of Advance Ruling (AAR) ruled that 12% of GST is applicable to construction services of low cost housing units for flood-affected individuals in Kerala. 

The Authority of Joint Commissioner of Central Tax, Shivprasad S. IRS and Additional Commissioner of State Tax, ruled that the services provided by the applicant to Sri Sathya Sai Trust for construction of low-cost housing units falls within the ambit of Sl No.3 (v) of Notification No. 11/2017- Central Tax (Rate) dated June 28, 2017, as amended and is liable to GST at the rate of 12% (6% CGST and 6% SGST).

‘Ada’ Classifiable as ‘Vermicelli’, 5% GST Leviable In Re: M/s Ramachandran Bror CITATION:   2018 TAXSCAN (AAR) 118

The Advance Ruling Authority (AAR), Kerala has held that the product ‘Ada’ is classifiable as Seviyan (vermicelli) under Heading No. 1902 for which, GST of 5 percent is attracted. The Advance Ruling Authority (AAR), Kerala has held that the product ‘Ada’ is classifiable as Seviyan (vermicelli) under Heading No. 1902 for which, GST of 5 percent is attracted.

5% GST applicable for Sale of Out Board Motors for use in Fishing Vessels In Re: M/s. GEORGE MAIJO INDUSTRIES PRIVATE LIMITED CITATION:   2022 TAXSCAN (AAR) 271

The Kerala Authority for Advance Ruling (AAR) recently clarified that Sale of Yamaha Out Board Motors (OBMs) for use in fishing vessels attract 5% concessional Goods and Services Tax (GST) instead of 28% normal GST.

It was observed by the Authority comprising Joint Commissioner of Central Tax Sreeparvathy S L and Additional Commissioner of State Tax Abraham Renn S that, parts of goods of headings 8901,8902, 8904, 8905, 8906, 8907 falling under any chapter of the Customs Tariff attracts GST at the rate of 5%.

Works Contract Services for construction provided to Malabar Cancer Centre attracts 18% GST In Re: M/s URALUNGAL LABOUR CONTRACT CO-OP SOCIETY LTD CITATION:   2022 TAXSCAN (AAR) 269

The Kerala Authority for Advance Ruling (AAR), ruled that Works Contract Services for construction provided to Malabar Cancer Centre attracts 18% GST. The Division Bench consisting of Dr S.L. Sreeparvathy, IRS and Shy Abraham Renn S, IRS held that “We conclude that the services rendered by the applicant to Malabar Cancer Centre as detailed in the application are eligible for the concessional rate of tax of 12% prescribed in the entry at SI No. 3(vi) of Notification No. 11/2017 Central Tax (Rate) as Malabar Cancer Centre is a governmental authority as per definition of governmental authority.”

Activity of Commercial Vehicle Body Building on chassis supplied by Customer is Supply ofService, attracts 18% GST In Re: M/s Oyester Auto Body CITATION:   2022 TAXSCAN (AAR) 270

The Kerala Authority for Advance Ruling (AAR), ruled that activity of Commercial Vehicle Body Building on chassis supplied by customers attracts 18% GST.

A Division Bench consisting of Dr S.L. Sreeparvathy, IRS and Abraham Renn S, IRS observed that “The value of the services in this Heading is based on the service fee paid, not the value of the goods manufactured, SAC – 99888 under Heading 9988 pertains to Transport equipment manufacturing services and Sub – Heading 998881 pertains to Motor vehicle and trailer manufacturing services. Therefore, the activity of the applicant as discussed above is appropriately classifiable under Service Accounting Code 998881.”

Marine Engine and its Spare Parts for Fishing Vessels attract 5% GST In Re: M/s Kerala State Co-operative Federation For Fisheries Development Limited CITATION:   2022 TAXSCAN (AAR) 268

The Authority of Advance Ruling (AAR), Kerala has recently clarified that, The marine engine and its spare parts supplied for use in vessels falling under Customs Tariff Heading 8902 (Fishing Vessels) shall attract Goods and Services Tax (GST) at the rate of 5% [Central Goods and Services Tax (CGST) 2.5% and State Goods and Services Tax (SGST) 2.5%].

18% GST applicable on Construction of Residential Apartments In Re: M/s GALAXY HOMES PRIVATE LIMITED CITATION:   2022 TAXSCAN (AAR) 267

The Kerala Authority for Advance Ruling (AAR) has recently ruled that one-third the amount charged for supply of residential apartments after construction is taxable at 18% Goods and Services Tax (GST), 9% Central Goods and Services Tax (CGST) and 9% State Goods and Services Tax (SGST).

The entry item (if), that the services provided by the developers are taxable at 12% concessional GST rate as contended by the applicants was ruled not to be applicable in this regard by the AAR.

Developer can Deduct One-Third of Total Amount towards the Value of Land or Undivided Share of Land Involved in Supply In Re: M/s GALAXY HOMES PRIVATE LIMITED CITATION:   2022 TAXSCAN (AAR) 267

The Kerala Authority for Advance Ruling has recently ruled in an application by Galaxy Homes Private Limited that developers can deduct one-third of total amount received for supply of constructed residential apartments after construction from the taxable amount as the deemed value of the land or undivided share of land involved in the supply.

Bio-Mining and Scientific Closure of Legacy Wastes Exempted from GST In Re: M/s. Mz s. Zigma Global Environ Solutions Private Ltd CITATION:   2022 TAXSCAN (AAR) 266

The Kerala Authority for Advance Ruling (AAR), has recently, in an application filed before it, held that bio –mining and scientific closure of legacy wastes, are exempted from GST.

“The said services are classifiable under SAC 9994 as per the Annexure to Notification No. 11/2017-C.T. (Rate) dated 28.06.2017. Further, they are exempted under S1. No. 3 of the Notification No. 12/2017-C.T. (Rate) dated 28.06.2017 as amended”, concluding its observation, the Authority ruled.

1.5% GST applicable to Affordable Residential Apartments In Re: M/s. Crescent Builders CITATION:   2022 TAXSCAN (AAR) 265

The Kerala Authority for Advance Ruling (AAR) has recently held that the residential apartments under the category “affordable residential apartments”, having carpet area not exceeding 60 square metre in metropolitan cities or 90 square metre in cities, are taxable at 1.5% Goods and Services Tax (GST) as 0.75% Central Goods and Services Tax (CGST) alongwith 0.75% State Goods and Services Tax (SGST).

Separate Registration must for Construction Work in a State Rules to Konkan Railways In Re: M/s. Crescent Builders CITATION:   2022 TAXSCAN (AAR) 265

The Odisha Authority for Advance Ruling (AAR) has held that the Konkan Railway Corporation Limited requires a separate registration in the state for carrying out construction work given by the East Coast Railway.

GST payable on Fair Trade Premium In Re: M/s. Crescent Builders CITATION:   2022 TAXSCAN (AAR) 265

The Kerala bench of the Authority for Advance Rulings (AAR) has held that GST is payable on the fair trade premium as it forms part of the consideration for the goods supplied.

While concluding, the bench held that that the fair trade premium received by the applicant is nothing but part of the price that is actually paid/received in response to the supply of the goods made by the applicant and invariably constitutes an additional consideration received in respect of the supply of goods and is to be added to the taxable value of the respective goods supplied and liable to GST at the same rate as applicable to the goods supplied.

Cooking Cream attracts 18% GST, No infirmity in the Ruling of AAR In Re: M/s Khera Trading Company CITATION:   2022 TAXSCAN (AAAR) 101

The Kerala Appellate Authority of Advance Ruling (AAAR) ruled that 12% GST payable PVC tufted coir carpet or Mat. The coram of Shyam Raj Prasad and Anand Singh ruled that PVC tufted coir carpet/Mat is classified under Tariff Heading 5703 90 90 and is liable to GST at the rate of 12% as per SI No. 144 of Schedule II of Notification No. 01/2017-Central Tax (Rate) dated 28-06-2017 as amended.

No Separate GST Registration required for Selling Goods before clearing it for Home Consumption from Port of Import In Re: M/s Kamdhenu Agrochem Industries LLP CITATION:   2021 TAXSCAN (AAR) 169

The Kerala Appellate Authority of Advance Ruling (AAAR) ruled that Goods and Service Tax (GST) is payable on Amount received as reimbursement of discount or rebate from Castrol.

“M/s Castrol is issuing commercial credit notes, hence are not eligible to reduce their original tax liability. Thereby the appellant will not be liable to reverse the ITC attributable to the commercial credit notes Issued to them by M/s Castro,” the AAAR Bench observed.

12% GST payable PVC tufted coir carpet/Mat In Re: M/s Eco wood Private Limited CITATION:   2021 TAXSCAN (AAAR) 105

The Kerala Appellate Authority of Advance Ruling (AAAR) ruled that 12% GST payable on PVC Carpet Mat.

The coram of Shyam Raj Prasad and Anand Prasad ruled that impugned goads viz. PVC carpet Mat would fall in the Customs Tariff heading 3918 and the applicable rate of GST would be 18% (9% each of CGST and SGST). However, this order is restricted to the types of PVC floor coverings/Carpet/Mats being manufactured by the Applicant as per the manufacturing process submitted and whose sample was produced.

GST payable on Amount received as Reimbursement of Discount or Rebate from Castrol In Re: M/s Santhosh Distributors CITATION:   2021 TAXSCAN (AAAR) 106

The Kerala Appellate Authority of Advance Ruling (AAAR) ruled that the private coachings for Chartered Accountants (CA), Company Secretary (CS), Cost Accountants (CMA) etc. not an “Educational Institution”, liable to pay GST. The AAAR held that the Appellant cannot be categorised as an ‘education institution’ and upheld the ruling of AAR, Kerala.

12% GST payable on PVC Carpet Mat In Re: M/s Soft turf CITATION:   2021 TAXSCAN (AAAR) 107

The Kerala Appellate Authority of Advance Ruling (AAAR) ruled that 12% GST payable on PVC Carpet Mat.

The coram of Shyam Raj Prasad and Anand Prasad ruled that impugned goads viz. PVC carpet Mat would fall in the Customs Tariff heading 3918 and the applicable rate of GST would be 18% (9% each of CGST and SGST). However, this order is restricted to the types of PVC floor coverings/Carpet/Mats being manufactured by the Applicant as per the manufacturing process submitted and whose sample was produced.

Private Coachings for CA, CS, CMA not an ‘Educational Institution’, liable to pay GST, Affirms AAAR In Re: M/s Logic Management Training Institutes pvt Ltd CITATION:   2021 TAXSCAN (AAAR) 108

The Kerala Appellate Authority of Advance Ruling (AAAR) ruled that the private coachings for Chartered Accountants (CA), Company Secretary (CS), Cost Accountants (CMA) etc. not an “Educational Institution”, liable to pay GST.

The Appellate Authority clarified that conduct of degree courses by colleges, universities or institutions which lead to grant of qualifications would be covered under the definition of “educational institution”, and training given by private coaching institutes would not be covered, as such training does not lead to grant of recognized qualification.

Courses conducted by IIIC are eligible for exemption from GST, as it is an ‘Educational Institution’ In Re: M/s Uralungal Labour Contract Co op Society Ltd CITATION:   2021 TAXSCAN (AAR) 226

The Kerala Authority of Advance Ruling (AAR) ruled that Courses conducted by the Indian Institute of Infrastructure and Construction (IIIC) are eligible for exemption from GST, as it is an ‘Educational Institution’. The applicant had sought the advance ruling on the issue of whether the educational courses which are conducted in the Indian Institute of Infrastructure and Construction (IIIC) fall under the taxable service.

Sale of Apartments prior to Nov 8, 2019 can’t be treated as Supply under GST In Re: M/s Confederation of Real Estate Developers Association of India CITATION:   2021 TAXSCAN (AAR) 227

The Kerala Authority of Advance Ruling (AAR) ruled that the sale of apartments prior to November 8, 2019 cannot be treated as supply under GST.

The coram of Members Sivaprasad and Senil K.Rajan held that if the entire consideration in respect of the transaction is received after submission of the completion certificate in Form Appendix F to the Secretary as per Rule 22 of the Kerala Municipality Building Rules, 1999 the transaction shall not be treated as supply under GST in view of provisions contained in Paragraph 5 of Schedule III of the CGST Act, 2017.

Printing of Textbooks, Lottery Tickets & Stationery items for State Govt is Supply under GS In Re: M/s Kerala Books and Publications Society CITATION:   2021 TAXSCAN (AAR) 228

The Kerala Authority of Advance Ruling (AAR) ruled that the Printing of textbooks, Lottery tickets & stationery items for the State Govt is supplied under GST.

12% GST payable on PVC tufted Coir Mats and Matting In Re: M/s. ALLEPPEY FIBRETUFT PVT. LTD CITATION:   2021 TAXSCAN (AAR) 273

The Kerala Authority of Advance Ruling (AAR) ruled that 12% GST payable on PVC tufted Coir mats and matting.

“PVC tufted Coir mats and matting are appropriately classifiable under Customs Tariff Item 5703.90.90 and attract GST at the rate of 12% (CGST — 6% + SGST- 6%) as per entry at SI. No. 144 of Schedule II of Notification No. 01/2017 Central Tax (Rate) dated 28.06.2017,” the AAR observed.

GST Exempted on Composite Supply of Healthcare Services and Other Incidental Supplies In Re: M/s. Malankara Orthodox Syrian Church Medical Mission Hospital CITATION:   2021 TAXSCAN (AAR) 276

The Kerala Authority of Advance Ruling (AAR) ruled that GST exempted on composite supply of healthcare services and the other incidental supplies.

The AAR ruled that The supply of medicines and allied items by the pharmacy run by the hospital can only be treated as an individual supply of medicine and allied items and therefore is liable to GST at the rates applicable for each such item as per the GST Tariff Schedule.

AAR clarifies Dates of GST Refund in case of Cancellation of Residential Flats by Customer In Re: M/s. VKL Builders India Private Limited CITATION:   2021 TAXSCAN (AAR) 277

The Kerala Authority of Advance Ruling (AAR) clarified the dates of GST refund in case of cancellation of residential flats by customers.

The AAR ruled that the relevant date for filing of refund application in the above situation is the date of payment of tax as prescribed in clause (h) of Explanation 2 of Section 54 of the CGST Act, 2017.

18% GST payable if Builder fails to exercise option of Lower Rate In Re: M/s. VICTORIA REALTORS CITATION:   2021 TAXSCAN (AAR) 278

The Kerala Authority of Advance Ruling (AAR) ruled that 18% GST payable if the builder fails to exercise the option of the lower rate. The applicant had sought the advance ruling on the issue of whether the new tax rate of 7.5% (effective rate of 5% after excluding land portion), with no ITC, is applicable to the 11 unbooked units in the said VRINDHAVAN project.

No GST on Payment of Examination Fee on behalf of Students to AAPC as a Pure Agent In Re: M/s.CIGMA MEDICAL CODING PRIVATE LTD. CITATION:   2021 TAXSCAN (AAR) 279

The Kerala Authority of Advance Ruling (AAR) ruled that no GST payable on payment of examination fee on behalf of students to American Academy of Professional Coders  (AAPC) as a pure agent.

“The collection and payment of examination fee to AAPC by the applicant on behalf of outside students (who are not enrolled for training with the applicant) without collecting any service charge either from students or AAPC is not liable to GST,” the AAR ruled.

Tanker Bodybuilding on Job Work basis, on Chassis supplied by Customer, is Supply of Services, 18% GST payable In Re: M/s.CC FABS CITATION:   2021 TAXSCAN (AAR) 280

The Kerala Authority of Advance Ruling (AAR) ruled that Tanker bodybuilding on job work basis, on chassis supplied by the customer is Supply of Services and 18% GST is payable.

“The activity is liable to GST at the rate of 18% as per entry at SI No. 26 (iv) 9988 “Manufacturing services on physical inputs (goods) owned by others Manufacturing services on physical inputs (goods) owned by others, other than (i), (ia), (ib), (ic), (id), (ii), (iia) and (iii) above” of Notification No. 11/2017 Central Tax (Rate) dated 28.06.2017,” the AAR said. The AAR further ruled that the activity of tanker bodybuilding on the chassis owned by the customer is classifiable under Service Accounting Code 998881.

12% GST applicable on Laboratory Reagents for Rapid Testing of Food Safety Parameters In Re: M/s Neogen Food and Animal Security(India)Private Ltd. CITATION:   2021 TAXSCAN (AAR) 281

The Kerala Authority of Advance Ruling (AAR) ruled that 12% GST applicable on laboratory reagents for rapid testing of food safety parameters.

The AAR held that that the laboratory reagents for rapid testing of foods safety parameters supplied by the applicant is appropriately classifiable under Customs Tariff Heading 3822 00 90 and is liable to GST at the rate of 12% as per entry at Sl No. 80 of Schedule II of Notification No. 01/2017 Integrated Tax (Rate) dated June 28, 2017

12% GST on Salted and Masala Chips of Potato and Tapioca, Jackfruit Chips, Roasted and Salted Groundnuts, Cashew Nuts In Re: M/s N. M. Thulaseedharan and N. V. Chips CITATION:   2021 TAXSCAN (AAR) 282

The Kerala Authority of Advance Ruling (AAR) ruled that 12% GST on salted and masala chips of Potato and Tapioca, Jackfruit Chips,  roasted and salted groundnuts, and cashew nuts.

“The salted and masala chips of Potato and Tapioca are classifiable under Customs Tariff Heading 2008.19.40 and is liable to GST at the rate of 12% (6% -CGST + 6% – SGST) as per Entry at SI No. 40 of Schedule II of Notification No.01/2017 Central Tax (Rate) dated 28.06.2017,” the AAR said.

No GST payable on Composite Supply of Healthcare Services In Re: M/s. ST. THOMAS HOSPITAL CITATION:   2021 TAXSCAN (AAR) 283

The Kerala Authority of Advance Ruling (AAR) ruled that no GST payable on Composite supply of healthcare services.

“The supply of food to inpatients admitted to the hospital for diagnosis, or medical treatment or procedures is a component of the composite supply where the principal supply is healthcare services falling under SAC 999311 which is exempted as per entry at Sl No. 74 of Notification No.12/2017 Central Tax (Rate) dated 28.06.2017,” the AAR ruled.

5% GST payable on Marine Engines and its Spare Parts being part of Fishing Vessel In Re: M/s. South Indian Federation of Fishermen Societies CITATION:   2021 TAXSCAN (AAR) 284

The Kerala Authority of Advance Ruling (AAR) ruled that 5% GST is payable on marine engines and its spare parts being part of fishing vessels.

The Authority held that the product falls under Customs Tariff Head 3923 and is liable to GST at the rate of 18% as per entry at SI No. 108 of Schedule III of Notification No. 01/2017 Central Tax (Rate) dated 28.06.2017.

12% GST on Mats, Matting & Floor Covering of Coir backed by PVC, Rubber, Latex In Re: M/s. UNITED RUBBER INDUSTRIES CITATION:   2021 TAXSCAN (AAR) 285

The Kerala Authority of Advance Ruling (AAR) ruled that 12% Goods and Service Tax (GST) is payable on Mats, Matting & Floor Covering of Coir backed by PVC, Rubber, and Latex.

The coram of Joint Commissioner of Central Tax, Shiva Prasad and Additional Commissioner of State Tax, Senil A.K.Rajan ruled that Mats, Matting and Floor Covering of Coir backed by PVC, Rubber, Latex etc are appropriately classifiable under Tariff Sub- Heading 5703 90 90 of First Schedule of the Customs Tariff Act, 1975 and attracts GST at the rate of 12% (6% CGST and 6% SGST) as per entry at SI No. 144 of Schedule II of Notification No.1/2017-CGST (Rate) dated June 28, 2017.

12% GST on Chips, Sharkara varatti, Roasted and Salted Cashew nuts, Namkeens In Re: M/s.K. Swaminathan and Banana Chips CITATION:   2021 TAXSCAN (AAR) 286

The Kerala Authority of Advance Ruling (AAR) ruled that 12% GST on Chips, Sharkarai varatty, Roasted and Salted Cashew nuts and Namkeens.

“Halwa is appropriately classifiable under Customs Tariff Heading 2106 90 99 and is liable to GST at the rate of 5% (2.5%-CGST + 2.5% – SGST) as per SI No. 101 of Schedule I of Notification No. 01/2017 — Central Tax (Rate) dated 28.06.2017,” the AAR said.

18% GST on House Boats used for Cruises, Day Trips with Meals as part of Packages In Re: M/s.EVM Motors & Vehicles India Pvt.Ltd CITATION:   2021 TAXSCAN (AAR) 287

The Kerala Authority of Advance Ruling (AAR) ruled that 18% GST on house boats used for Cruises, Day Trips with Meals as part of Packages.

Placement of specified Medical Instruments to Unrelated Customers without consideration Constitutes Supply of Services In Re: M/s. Abbott Healthcare Pvt. Ltd CITATION:   2021 TAXSCAN (AAR) 288

The Kerala Authority of Advance Ruling (AAR) ruled that the placement of specified medical instruments to unrelated customers without consideration constitutes the supply of Services.

GST applicable on Supply by Indian Branch of Sutherland to Customers located outside India till July 2018 In Re: M/s. Sutherland Mortgage Services Inc. CITATION:   2021 TAXSCAN (AAR) 289

The Kerala Authority of Advance Ruling (AAR) ruled that the GST applicable on Supply by Indian Branch of Sutherland to customers located outside India till July 2018.

No GST on Renting / Leasing of Vacant Land used for Fish Farming In Re: M/s. Chellanam Grama Panchayath CITATION:   2021 TAXSCAN (AAR) 290

The Kerala Authority of Advance Ruling (AAR) ruled that no GST is payable on Renting/Leasing of vacant land used for fish farming.

The coram of Joint Commissioner of Central Tax, Shiva Prasad and Additional Commissioner of State Tax, Senil A.K.Rajan ruled that lease rent charged by Municipality / Panchayath for land i.e., water channel used for fish farming falls within the meaning of ‘services relating to rearing of all life forms of animals- by way of renting or leasing of vacant land’ eligible for GST exemption as per SI.No.54 of Notification No. 12/2017-Central Tax (Rate) dated June 28, 2017 and corresponding notification under Kerala GST

Supply of Goods & Services by way of Catering to Students of Govt. Industrial Training Institute as per Govt. Scheme is exempted from GST In Re: M/s.Shri. Hazrath Valiyaparambil Azeez CITATION:   2021 TAXSCAN (AAR) 305

The Kerala Authority of Advance Ruling (AAR) ruled that the Supply of goods & services by way of catering to students of Govt. Industrial Training Institute as per Govt. Scheme is exempted from GST.

The Authority held that the amount deducted as TDS will be credited to the Electronic Cash Ledger of the applicant on filing of TDS returns by the Deductor as the applicant is registered. Since the supply made by the applicant is exempted from GST, the applicant can claim refund of the excess balance in the Electronic Cash Ledger as per provisions of Section 54 of the CGST Act, 2017.

AAAR affirms no Concessional Rate of 12% GST applicable for Work Contract Services supplied to KSEB In Re: M/s H.S Development & Constructions Pvt Ltd. CITATION:   2020 TAXSCAN (AAR) 161

The Kerala Appellate Authority of Advance Ruling (AAAR) while affirming the AAR’s ruling held that no concessional rate of 12% GST applicable for work contract services supplied to Kerala State Electricity Board.

The Coram consisting of Shyam Raj Prasad and Anand Singh clarified that  Kerala State Electricity Board Ltd falls under the category of a Government entity for the purpose of the said exemption.

12% GST on Cochin Port Trust for providing Deposit under ‘Work Contract’ In Re:M/S.Cochin Port Trust CITATION:   2020 TAXSCAN (AAR) 107

The Kerala Authority of Advance Ruling (AAR) ruled that 12% GST is applicable on Cochin Port Trust for providing Deposit Work under ‘Work Contract’.

The Authority ruled that the rate of GST applicable on the services provided by the applicant as per the said M.O.U. is 12% as per Sl No.3 (vi) (a) of the Notification No. 08/2017- Integrated Tax (Rate) dated 28.06.2017 as amended.

Institute training students to obtain qualification like CA, ACCA, CS, CMA are not exempted from GST In Re: M/s Logic Management Training Institutes Pvt. Ltd. CITATION:   2020 TAXSCAN (AAR) 160

The Kerala Authority of Advance Ruling (AAR) ruled that M/s Logic Management Training Industry is providing training to the students to help them obtain qualifications like CA, ACCA, CS, CMA, CPA etc. is not exempted from GST.

The Authority of the members Shivprasad S. and B.S. Thyagarajababu ruled that the education program and training being offered by the applicant is  not exempted from GST as the applicant was not covered under the definition of ‘Education Institution

Agricultural implements used for Rubber Tapping such as Spouts, Cup Holders and Collection Cups are exempted from GST In Re: M/s. Sun Polymers CITATION:   2020 TAXSCAN (AAR) 159

The Authority of Advance Ruling (AAR) in Kerala has ruled that, Agricultural implements used for rubber tapping such as spouts, cup holders and collection cups are exempted from Goods and Services Tax (GST).

12% GST on Manufacture of PVC Tufted Coir Mats / Mattings / Floor coverings by the process of embedding coir yarn into PVC In Re: M/s Eco Wood Private Limited CITATION:   2020 TAXSCAN (AAR) 158

The Kerala Authority of Advance Ruling (AAR) ruled that 12% GST is applicable on the Manufacture of PVC Tufted Coir Mats / Mattings / Floor coverings by the process of embedding coir yarn into PVC.

“The PVC Tufted Coir mats/mattings/floor coverings are classifiable under Customs Tariff Heading 5703 90 90 and attracts GST at the rate of 12% as per SI No. 144 of Schedule II of Notification No.01/2017-CT (‘Rate’) dated 28-06-2017” the AAR, while ruling on the last issue said.

12% GST on Works Contracts awarded by Government Authorities In Re: M/s Ray Constructions Ltd CITATION:   2020 TAXSCAN (AAR) 157

The Kerala Authority of Advance Ruling (AAR) ruled that 12% GST is applicable to works contracts awarded by Government authorities.

Cast Protectors can’t be considered as a Pharmaceutical Product In Re: M/s Dynamic Techno Medicals Pvt. Ltd CITATION:   2020 TAXSCAN (AAR) 156

The Kerala Authority of Advance Ruling (AAR) ruled that cast protectors cannot be considered as a pharmaceutical product.

Therefore, the AAR held that The product cannot be classified under the category of fracture appliances falling under HSN 9021 solely for the reason that it is used by persons to keep the casts dry while bathing.

Knanaya Multi-Purpose Co-operative Credit is Financial Institution, eligible for 50% of ITC In Re: M/s The Knanaya Multi-Purpose Co-operative Credit Society Ltd CITATION:   2020 TAXSCAN (AAR) 155

The Kerala Authority of Advance Ruling (AAR) ruled that the applicant Knanaya Multi-Purpose Co-operative Credit is a financial institution, eligible for 50% of Input Tax Credit (ITC).

Therefore, AAR ruled that the applicant is eligible for availing the option provided under Section 17(4) of the CGST Act which prescribes to avail an amount equal to 50% of eligible credit of input tax, on inputs, capital goods and input services in that month and the rest shall lapse.

Lease Rent charged by Municipality for land is eligible for GST Exemption In Re: M/s GEORGE JACOB CITATION:   2020 TAXSCAN (AAR) 173

The Kerala Authority of Advance Ruling (AAR) ruled that the lease rent charged by the municipality for land is eligible for GST exemption.

The Authority of Joint Commissioner of Central Tax, Shivprasad S. IRS and Additional Commissioner of State Tax, B.S. Thyagarajababu observed that the fish and crabs being reared by the applicant in the water channel taken on rent or lease are animals and the service of renting or leasing of the water channel has been availed by the applicant for the rearing of the animals.

Distributors are liable to pay GST on Additional Discount Reimbursed In Re: M/s Santhosh Distributors CITATION:   2020 TAXSCAN (AAR) 172

The Kerala Authority for Advance Ruling (AAR) ruled that Distributors are liable to pay GST and also eligible to avail Input Tax Credit (ITC).

GST: Rates quoted separately for Spare Parts / Accessories and Services are not Composite Supply In Re: M/s Vista Marine and Hydraulics CITATION:   2019 TAXSCAN (AAR) 104

The Kerala Authority for Advance Ruling (AAR) ruled that, when the rates are quoted separately for the supply of spare parts/ accessories and the supply of service, then Repair Rate Contract can’t be considered as a composite supply.

GST: PVC Tufted Coir Mats and Mattings Taxable at 12% In Re: M/s Travancore cocotuft pvt ltd CITATION:   2019 TAXSCAN (AAR) 133

The Kerala Authority for Advance Ruling in an application filed by M/s Travancore Cocotuft Pvt Ltd held that PVC tufted coir mats and mattings shall be chargeable to a GST of 12%

Resale of Food Items and Sale of Bakery Products not Restaurant Services In Re: M/s Square One Homemade Treats CITATION:   2019 TAXSCAN (AAR) 126

The Kerala Authority of Advance Rulings in an application filed by M/s Square One Homemade Treats while prescribing the rates applicable on different items on bakery products held that resale of food and bakery products are not restaurant services.

Artificial Body Parts / Devices implanted by Surgical Procedure exempt from GST In Re: M/s Baby Memorial Hospital Ltd CITATION:   2019 TAXSCAN (AAR) 103

The Kerala bench of the Authority of Advance Ruling ( AAR ) in an application filed by M/s Baby Memorial Hospital Ltd held that artificial body parts / devices implanted in the body by means of a surgical procedure shall be classified as a composite supply which shall be exempt since the principal supply is healthcare service.

Rental Agreement to be uploaded for Separately Registering Multi Companies providing Services in a Co-Working Space In Re: M/s Spacelance office Solutions Pvt ltd CITATION:   2019 TAXSCAN (AAR) 127

The Kerala Authority for Advance Ruling in an application filed by M/s Spacelance office Solutions Pvt ltd held that separate GST registration can be allowed to multiple companies functioning in a “co-working space” and which provide services alone.

However, such companies shall upload the rental agreement with the landlord or lessee. If there is any sub-lease, then the rental agreement between lessee and sublessee should also be uploaded as proof of address of the principal place of business of respective suit or desk number assigned to them.

No Exemption to Supply of Frozen Seafood by Brand Name Holder in packages without Brand Name to Institutional Customers In Re: M/s Abad Fisheries Pvt Ltd CITATION:   2019 TAXSCAN (AAR) 128

The Kerala Authority for Advance Ruling in an application filed by M/s Abad Fisheries Pvt Ltd held that supply of frozen seafood in packages without a brand name to institutional customers who enter into an agreement with the supplier considering the quality offered by the brand, shall not be covered under the exemption notification.

Labour Services availed to Forest Department for Environment Protection are Exempted from GST In Re: M/s Shri Puthoor Unnikrishnan CITATION:   2019 TAXSCAN (AAR) 129

The Authority of Advance Ruling, Kerala has ruled that Supply of providing labour services for setting up fire lines in forests, plantation of trees in forests, labour services for RIL / river maintenance, labour services of clearing truck paths in forests are exempted from GST.

Printing of Images from Digital Media attracts 18% GST In Re: M/s Colortone Process Pvt. Ltd CITATION:   2019 TAXSCAN (AAR) 130

The Advance Ruling Authority (AAR), Kerala has held that the activity of printing of images from digital media would attract 18% Goods and Services Tax (GST).

Advance Ruling Authority has No Jurisdiction to determine ‘Place of Supply’ In Re: M/s Sutherland Mortgage Service Inc CITATION:   2019 TAXSCAN (AAR) 131

The Kerala State Advance Ruling Authority ( AAR ) has held that it has no jurisdiction to determine the ‘place of supply’ under the Goods and Services Tax (GST) Act.

Transitional Credit not allowable to Computers, Laptops used for providing Output Service: AAAR In Re: M/s Geojit Financial Services Limited CITATION:   2019 TAXSCAN (AAR) 132

The Appellate Authority for Advance Rulings (AAAR) has held that the transitional credit under Kerala GST Act is not allowable for computers, laptops etc., which were utilised for providing the output services.

Medicines, Consumables, Implants provided by Hospitals to In-Patients exempted from GST In Re: M/s Geojit Financial Services Limited CITATION:   2019 TAXSCAN (AAR) 132

The Authority of Advance Ruling ( AAR ), Kerala has ruled that, The supply of medicines, consumables and implants used in the course of providing health care services to in-patients for diagnosis or treatment are naturally bundled and are provided in conjunction with each other, would be considered as “Composite Supply” and eligible for exemption under the category ‘health care services’.

Quit Rent/ Lease Rent paid to Govt for Agricultural Purpose exempted from GST In Re: M/s The Chocin Plantations Ltd CITATION:   2018 TAXSCAN (AAR) 120

The Advance Ruling Authority ( AAR ), Kerala has held that the quit rent or lease rent paid to the Government for the use of land for agricultural purpose is exempted from GST.

It was also observed that the lease rent received in relation to agricultural activities was also exempted under the Service Tax regime also.

18% GST applicable to Whole Wheat Malabar Parotta

The Advance Rulings Authority (AAR), Kerala has held that 18 percent GST is leviable on the Whole Wheat Malabar Parota.

After hearing the contentions, the authority said that ‘Classic Malabar Parotta’ and ‘Whole Wheat Malabar Parotta’ classified under Schedule III of GST Laws, vide Heading 2106 ‘Food preparations not elsewhere specified or included’ and is taxable @18% GST.

GST payable on Supply of Food Items to Employees for Consideration in Canteen run by Company: AAAR In Re: M/s Caltech Polymers Pvt Ltd CITATION:   2018 TAXSCAN (AAAR) 101

The Appellate Authority for Advance Rulings (AAAR) has upheld the ruling of the AAR that the recovery of food expenses from the employees for the canteen services provided by company would come under the definition of ‘outward supply’ as defined in Section 2 (83) of the Goods and Services Tax Act, 2017 and hence are taxable under the Goods and Services Tax (GST) laws.

12% GST Applicable to Supply of Works Contracts awarded by Government and Central University of Kerala In Re: M/s Mary Matha construction Company CITATION:   2018 TAXSCAN (AAR) 121

The Authority for Advance Ruling ( AAR ), Kerala has held that the supply of works contracts awarded by the Government and the Central University of Kerala would attract 12 per cent GST. The authority also clarified that the supply of works awarded by a private entity for the construction of Biotech lab and administrative block at Life Science Park, Trivandrum would attract 18% GST.

Co-Owner need not obtain GST Registration If his Individual Turnover does not exceed 20 Lakhs In Re: M/s Elambrancgeri Khaldoon CITATION:   2018 TAXSCAN (AAR) 122

The Authority for Advance Ruling (AAR), Kerala has ruled that the threshold limit for obtaining GST registration under section 22 of the Central Goods and Services Tax (CGST) Act is applicable to the co-owners separately in the case of jointly owned property, where the rent is collected together, but divided equally and transferred to the respective co-owner.

ITC in respect of GST paid on Development of Land can be reversed on Pro-rata basis after Issuance of Completion Certificate on Sale In Re: M/s PPD Living Spaces Pvt Ltd CITATION:   2018 TAXSCAN (AAR) 123

The Authority for Advance Ruling (AAR), Kerala has held that the input tax credit must be reversed on a pro-rata basis after issuing  while selling the plot as per the GST laws. The authority has clarified that it is lawful to structure agreement by fixing land cost after absorbing development charges.

Supply of Medicines & Allied Items to In-patients by Hospital is Composite Supply under GST In Re: M/s Ernakulam Medical Centre Pvt Ltd CITATION:   2018 TAXSCAN (AAR) 124

The Authority for Advance Ruling (AAR), Kerala has held that the supply of medicines and allied items like food as advised by doctor/nutritionist provided by hospital through pharmacy to in-patients shall be treated as composite supply of health care treatment under the GST regime and, therefore, cannot be taxed separately. The authority has clarified that the supply of medicines and allied items provided by hospitals through pharmacy to out-patients is taxable.

Dealer can claim Input Tax Credit on Demo Cars In Re: M/s A M Motors CITATION:   2018 TAXSCAN (AAR) 125

The Authority for Advance Ruling (AAR), Kerala has ruled that Input tax paid by a vehicle dealer on the purchase of motor car used for demonstration purpose of the customer can be availed as input tax credit on capital goods and set off against output tax payable under the Goods and Services Tax (GST) regime.

5% GST applicable to Commodities used as a part of Fishing or Floating Vessels In Re: M/s Sri. Dharsak V. P CITATION:   2018 TAXSCAN (AAR) 126

The Authority for Advance Ruling (AAR), Kerala has held that commodities such as marine propellers, rudder set, stern tube set, propeller shaft and M.S. Shaft for couplings used as a part of fishing and floating vessels would be taxable at the rate of 5 per cent under the Goods and Services Tax (GST) regime.

Commodities such as Marine Propellers, Rudder Set, Stern Tube Set, Propeller Shaft etc. attract 5% GST In Re: M/s Sri. Dharsak V.P CITATION:   2018 TAXSCAN (AAR) 126

The Authority of Advance Ruling (AAR), Kerala held that commodities such as marine propellers, rudder set, stern tube set, propeller shaft and M.S shaft for couplings used as part of fishing /floating vessels would come under Entry 252 of Schedule I of Notification no. 01/2017 Central Tax (Rate) and State Notification 360/2017, and is taxable at 5% (2.5% CGST and 2.5%  SGST).

Implants for Joint Replacements attract 5% GST In Re: M/s Shri. Gopal Gireesh CITATION:   2018 TAXSCAN (AAR) 127

The Authority of Advance Ruling (AAR), Kerala has ruled that Implants for Joint Replacements attract 5% Goods and Services Tax (GST).

5% GST leviable on Carry Bags made of Polypropylene Non-Woven Fabrics In Re: M/s . JJ Fabrics CITATION:   2018 TAXSCAN (AAR) 128

The Advance Ruling Authority (AAR), Kerala recently ruled that carry bags made of polypropylene non-woven fabrics is classified under Entry 224 of Schedule 1 of Notification 01/2017 Central Tax (Rate) and State Notification dated 360/2017 and taxable at 5% (SGST 2.5% and CGST 2.5%).

GST Rate of Rubber Wood is 18% In Re: M/s Sri.N.C. Varghese CITATION:   2018 TAXSCAN (AAR) 129

In an order by the Authority for Advance Ruling, (AAR) Kerala, the authority clarified that rate of GST on rubber wood as 18% under the HSN4403.

Food Expenses recovered from Employees for Canteen Services is subject to GST In Re: M/s Caltech Polymers Pvt. Ltd. CITATION:   2018 TAXSCAN (AAR) 130

In an order by the Authority for Advance Ruling (AAR), Kerala, has ruled that recovery of food expenses from the employees for the canteen services provided by company would come under the definition of ‘outward supply’ as defined in Section 2 (83) of the Goods and Services Tax Act, 2017 and hence are taxable under the Goods and Services Tax (GST) laws.

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