Complete Case Digest of Maharashtra AAR (Part 2)

The GST AAR's decision is only binding on the applicant who requested the verdict and the jurisdictional GST authorities. If the GST officer issues an order that contradicts the AAR's finding, the applicant has 30 days from the date of the order to file an appeal with the Appellate Authority for Advance finding (AAAR). The AAAR's decision is binding on the applicant, jurisdictional GST officers, and the GST AAR. The Maharashtra GST AAR refers to the Advance Ruling Authority (AAR) for the state of Maharashtra under India's Goods and Services Tax (GST) regime. The AAR is a quasi-judicial organisation that assists taxpayers seeking clarification on various areas of GST. Recovery of Top-Up Insurance / Parental Insurance Premium from Employees not covered under ‘Supply of Service’, No GST payable The Maharashtra Authority of Advance Ruling (AAR) ruled that recovery of Top Up Insurance/Parental Insurance Premium from employees not covered under “supply of service”so no GST payable. The coram of Rajiv Magoo and T.R.Ramnani ruled that the recovery of the Top Up Insurance/Parental Insurance Premium from employees does not amount to “supply of service” under Section 7 of the Central Goods and Service Tax Act, 2017. 18% GST Payable on Amounts Received in form of Donation / Grants from various entities including Central and State Govt In Re: M/s Jayashankar Gramin Va Adivasi Vikas Sanstha CITATION: 2021 TAXSCAN (AAR) 162 The Maharashtra Authority of Advance Ruling (AAR) ruled that 18% GST payable on amounts received in form of Donations or Grants from various entities including Central and State governments. The Coram of Rajiv Magoo and T.R.Ramnani ruled that in case of donations, if the gift or donation is made to a charitable organization; the payment has the character of gift or donation and the purpose is philanthropic (i.e. it leads to no commercial gain) and not an advertisement, then GST is not leviable. In all other cases, GST is leviable. Therefore, GST would be charged at the rate of 18%. ITC can’t be availed by Housing Society where Contractor has provided Works Contract Service for Repairs, Renovations & Rehabilitation Works In Re: M/s Mahavir Nagar Shiv Srushti Co-operative Housing Society Limited CITATION: 2021 TAXSCAN (AAR) 163 The Maharashtra Authority of Advance Ruling (AAR) ruled that Input Tax Credit (ITC) cannot be availed by Housing Society where contractor has provided works contract service for repairs, renovations & rehabilitation works. The coram of Rajiv Magoo and T.R.Ramnani ruled that The housing society i.e. the applicant in the subject case, is making provisions of the facilities/benefits to its members and is not providing any works contract services to its members and therefore the applicant is debarred from taking Input Tax Credit under the provisions of Section 17 (5) (c) of the CGST Act, 2017. Society claiming GST Exemption of Rs.7500 cannot avail ITC on Input Services In Re: M/s VISHAL COOPERATIVE HOUSING SOCIETY LIMITED CITATION:2021 TAXSCAN (AAR) 167 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. No GST Exemption on Renting of Property to Govt. for under-privileged Girl In Re: M/s Meerabai Tukaram Borade CITATION: 2021 TAXSCAN (AAR) 168 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. 18% GST payable on Reshelling of Old Sugar Mill Rollers In Re: M/s S.B.Reshellers Pvt Ltd CITATION: 2021 TAXSCAN (AAR) 173 The Maharashtra Authority of Advance Ruling (AAR) ruled that 18% GST payable on Reshelling of old Sugar Mill Rollers. The applicant has sought the advance ruling on the issue in respect of classification of the reshelling of old sugar mill rollers and Whether the activity of reshelling of old sugar mill rollers will attract 12% GST in terms of clause (id) of Sr. No.26 of Notification No.11/2017-CT(R), dt.28.06.2017 or will continue to attract 18% GST as earlier. The coram of Rajiv Magoo and T.R.Ramnani ruled that the activity of the said taxable supplies. 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 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. GST payable on Vehicles Registered in Tourist category for carrying Covid-19 patients for Medical Treatment In Re: M/s Geetee Tours Private Limited CITATION:2021 TAXSCAN (AAR) 174 The Maharashtra Authority of Advance Ruling (AAR) ruled that GST payable on Vehicles registered in the Tourist category for carrying Covid-19 patients for Medical Treatment. The applicant has sought the advance ruling on whether Toyota Innova Or Equivalent Vehicles (6 Seater) registered in Tourist category with All India Tourist Permit provided for carrying Covid 19 patients for Medical Treatment would be considered as Taxable Services Or Exempted Services. The coram of Rajiv Magoo and T.R.Ramnani observed that even though the applicant has submitted that the subject supplies would fall under entry no. 6 of twelfth schedule article 243W of the constitution i.e. “Public health, no evidence or documents have been submitted to substantiate their claims for exemption. ITC can’t be claimed on Indirect Expenses like Rent, Commission, Professional Fees, Telephone incurred for Purpose of Business In Re: M/s DECCAN WHEELS CITATION: 2021 TAXSCAN (AAR) 175 The Maharashtra Authority of Advance Ruling (AAR) ruled that Input Tax Credit cannot be claimed on Indirect Expenses like rent, commission, professional fees, telephone incurred for purpose of business. The coram of Rajiv Magoo and T.R.Ramnani observed that the concessional rate under the notification shall not apply, if the supplier of such goods has availed input tax credit as defined in clause (63) of section 2 of the Central Goods and Services Tax Act, 2017, CENVAT as defined in CENVAT Credit Rules, 2004 or the input tax credit of Value Added Tax or any other taxes paid, on such goods. Only Goods Supplier can seek GST Advance Ruling, not the Recipient In Re: M/s USV Private Limited CITATION: 2021 TAXSCAN (AAR) 177 The Maharashtra Authority of Advance Ruling (AAR) while rejecting the application filed by the USV Private Limited held that the only goods supplier can seek GST advance ruling, not the recipient. The coram of Rajiv Magoo and T.R.Ramnani conducted that the subject application is rejected as being non-maintainable as per Section 95 of the CGST Act, 2017 because the applicant has firstly raised questions as a recipient of services and secondly the questions are in respect of past and completed supply as on the date of the application and not supply, which is being undertaken/proposed to be undertaken. 12% GST applicable on Turbilatex C-reactive protein (CRP) infinite & HbA1c infinite In Re: M/s ACCUREX BIOMEDICAL PRIVATE LIMITED CITATION: 2021 TAXSCAN (AAR) 181 The Maharashtra Authority of Advance Ruling (AAR) held that 12% GST applicable on Turbilatex C-reactive protein (CRP) infinite & HbA1c infinite. The coram of Members Rajiv Mago and T.R.Ramnani noted that the government has issued the notification during the COVID 19 Pandemic situation in India vide which the Government of India announced a reduction in the GST rates (IGST, UTGST, and CGST) on the specified items being used in Covid-19 relief and management till 30th September 2021. The AAR ruled that the Tar bilatex C-reactive protein (CRP) infinite and HbAlc infinite are classifiable under Heading 38.22 and under Sr.No 80 of Schedule II of the Notification No. 1/2017 – Central Tax (Rate) dated 28th June 2017 attract GST at the rate of 12% (6% each of CGST and SGST/UTGST or 12% IGST). Process undertaken Covered under Job Work If No New Product comes into existence, 12% GST payable In Re: M/s FINE ELECTRO COATING CITATION:2021 TAXSCAN (AAR) 182 The Maharashtra Authority of Advance Ruling (AAR) held that the Process undertaken is covered under job work if no new product comes into existence and 12% GST is payable on job work. The coram of Members Rajiv Mago and T.R.Ramnani ruled that since no new product comes into existence after the process conducted by the applicant on the goods supplied by its principals, therefore the process undertaken will come under the purview of job work as defined under Section 2 (68) of the GST Act, 2017. Thus, the applicant is only a job worker and as a job worker, carries out processes on goods supplied by its principals. 5% GST on Job Work Services by Garware Industries In Re: M/s GARWARE INDUSTRIEES LIMITED CITATION: 2021 TAXSCAN (AAR) 183 The Maharashtra Authority of Advance Ruling (AAR) held that 5% GST on Job work services by Garware industries. The coram of Members Rajiv Mago and T.R.Ramnani ruled that the Impugned services provided by applicant falls under clause (id) Heading 9988. “Since no new product comes into existence after the process conducted by the applicant on the raw materials supplied by GPL, therefore the process undertaken will come under the purview of job work as defined under Section 2 (68) of the GST Act, 2017. Thus, in view of the above we find that, the applicant is only a job worker to GPL and as a job worker, carries out processes on goods i.e. Polyester Films supplied by the principal i.e. GPL,” the AAR noted. No GST payable by Mumbai Port Trust on Way Leave Fees & Lease Rent to MMRDA In Re: M/s Mumbai Port Trust CITATION: 2021 TAXSCAN (AAR) 184 The Maharashtra Authority of Advance Ruling (AAR) held that Mumbai Port Trust is eligible for GST Exemption on Way Leave fees and Lease rent to Mumbai Metropolitan Region Development Authority (MMRDA). The coram of Members Rajiv Mago and T.R.Ramnani ruled that the Applicant is entitled to exemption from payment of GST in terms of Entry No.3 of the Notification No. 12/2012-CTR dtd.20-06-2012 on the above listed considerations payable to it by Mumbai Metropolitan Region Development Authority in terms of Memorandum of Understanding entered into between the MBPT and MMRDA. 18% GST payable on Aluminium Composite Panel or Sheet In Re:M/s ALUDECOR LAMINATION PRIVATE LIMITED CITATION: 2021 TAXSCAN (AAR) 193 The Maharashtra Authority of Advance Ruling (AAR) ruled that the 18% GST payable on Aluminium Composite Panel or Sheet. The applicant has sought the advance ruling on the issue of whether the Aluminium Composite Panel/sheet is covered under: HSN Code 3920 or HSN Code 7606 or HSN Code 7610 and what is the rate of tax on the same under SGST Act and CGST Act respectively. The coram of Rajiv Magoo and T.R. Ramnani ruled that the Aluminium Composite Panel/Sheet is covered under HSN Code 7606. The rate of tax on Aluminium Composite Panel/Sheet is 18% (9% each under CGST and SGST). GST Exempted on Hostel Rent of less than Rs. 1000 per day per Student In Re: M/s GHODAWAT EDUSERVE LLP CITATION: 2021 TAXSCAN (AAR) 221 The Maharashtra Authority of Advance Ruling (AAR) ruled that Goods and Service Tax (GST) is exempted on Hostel Rent of less than Rs. 1000 per day per Student. The Coram of members Rajiv Magoo and T.R.Ramnani ruled that exemption under Sr. No. 14 is available for services provided by a hotel, inn, guest house, club, or campsite, by whatever name called, for residential or lodging purpose, having a value of supply of a unit of accommodation below Rs.1000/- per day or equivalent. 18% GST payable on Crumb Rubber or Granule In Re: M/s GREEN RUBBER CRUMB PRIVATE LIMITED CITATION: 2021 TAXSCAN (AAR) 205 The Maharashtra Authority of Advance Ruling (AAR) ruled that 18% GST is payable on Crumb rubber or granule. The applicant has sought the advance ruling on the issue in respect of HSN classification of Crumb rubber/granule and applicability of Current duty. The Coram of Rajiv Magoo and T.R. Ramnani noted that Powders and granules, obtained from such goods of such rubber (other than hard rubber) are definitely not usable as such because of cutting-up, wear or other reasons” which includes worn-out rubber tyres, are covered under Heading 4004. 5% GST payable on Supply of Batteries for Use in Warships such as Submarines of Indian Navy In Re: M/s Exide Industries Limited CITATION: 2021 TAXSCAN (AAR) 206 The Maharashtra Authority of Advance Ruling (AAR) ruled that 5% GST payable on the supply of batteries for the use in warships such as submarines of the Indian Navy. The Coram of Rajiv Mangoo and T.R. Ramnani noted that batteries will be considered as parts of vessels falling under heading 8901, 8902, 8904 to 8907, only if they are used in manufacturing goods falling under Tariff Headings 8901, 8902, 8904 to 8907. The AAR held that the batteries supplied by them for exclusive use in goods falling under heading 8901, 8902, 8904 to 8907 will be taxable at the rate of 5% IGST (2.5% CGST and SGST each). 18% GST payable for Treated Water obtained from Sewage Treatment Plant In Re: M/s Rashtriya Chemicals and Fertilizers Limited CITATION: 2021 TAXSCAN (AAR) 208 The Maharashtra Authority of Advance Ruling (AAR) ruled that 18% GST payable Treated Water obtained from Sewage Treatment Plant (STP). The coram of Rajiv Mangoo and T.R.Ramnani noted that the term ‘waters’ is specifically prescribed for the levy of taxes under Entry No.24 of schedule rates. Eventually, the authority concluded and held that the purified “Treated water” from the sewage is covered under Entry No. 24 of HSN 2201. The AAR opined that the “Treated water” obtained from sewage is covered under term “waters”. Hence it is taxable and same would be taxable at the rate of 18% (9 % SGST and 9% CGST) or IGST under Entry 24 of Schedule-III of Notification No. 1/2017 Central Tax (Rate) dated June 28, 2017 as amended by Notification No. 06/2018 and Central Tax (Rate) dated January 25, 2018. 18% GST applicable on ‘Other Services’ not naturally bundled with Construction Services In Re: M/s Puranik Builders Ltd. CITATION: 2021 TAXSCAN (AAR) 220 The Maharashtra Authority of Advance Ruling (AAR) ruled that 18% GST applicable on ‘Other services’ not naturally bundled with Construction services. The Coram of members Rajiv Magoo and T.R. Ramnani observed that ‘Construction services’ and the ‘other services’ provided by the applicant are not naturally bundled and are not supplied in conjunction with each other in the ordinary course of business with main supply. GST Exempted on Hostel Rent of less than Rs.1000 per day per Student In Re: M/s GHODAWAT EDUSERVE LLP CITATION: 2021 TAXSCAN (AAR) 221 The Maharashtra Authority of Advance Ruling (AAR) ruled that Goods and Service Tax (GST) is exempted on Hostel Rent of less than Rs. 1000 per day per Student. The Coram of members Rajiv Magoo and T.R.Ramnani ruled that exemption under Sr. No. 14 is available for services provided by a hotel, inn, guest house, club, or campsite, by whatever name called, for residential or lodging purpose, having a value of supply of a unit of accommodation below Rs.1000/- per day or equivalent. GST applicable on Hiring of Non-AC Buses to Company for Transport of Staff In Re: M/s SHAILESH RAMSUNDER PANDE CITATION: 2021 TAXSCAN (AAR) 222 The Maharashtra Authority of Advance Ruling (AAR) ruled that GST is applicable on the hiring of Non-AC buses to Company for Transport of Staff. The Coram of members Rajiv Magoo and T.R . Ramnani ruled that in the case of transportation of passengers, the recipient of service would be the passenger whereas in the case of renting any motor vehicle, like buses in the subject case, the recipient would not be the passenger. In the subject case, the consideration for the supply of service is charged from RIPL and not the passenger. Reimbursement received of Stipend paid to Trainees exempted from GST In Re: M/s YASHASWI ACADEMY FOR SKILLS CITATION: 2021 TAXSCAN (AAR) 223 The Maharashtra Authority of Advance Ruling (AAR) ruled that reimbursement received of the stipend paid to trainees exempted from Goods and Service Tax (GST). The applicant has sought an advance ruling in respect of GST on reimbursement by Industry Partner to YAS of the stipend paid to students attracts GST. The Coram of Rajiv Magoo and T.R. Ramnani held that the reimbursement by Industry Partner to the applicant (YAS), of the stipend paid to the trainees, does not attract tax under the GST Acts. No GST payable by Liaison Office of World Economic Forum on Services received from HO In Re: M/s The World Economic Forum,India Liaison Office CITATION:2021 TAXSCAN (AAR) 224 The Maharashtra Authority of Advance Ruling (AAR) ruled that no GST was payable by the Liaison Office of World Economic Forum on services received from Head Office (HO). The Coram of Rajiv Magoo and T.R.Ramnani in the light of Section 7(1)(b) and Schedule 1 of the CGST Act as well as relying on Schedule II of Notification No. 20/2000-RB dated May 03, 2000, of Foreign Exchange Management Act, 1999 (FEMA Notification) which specifies the permitted activities for a Liaison Office in India, observed that the Applicant is not undertaking any business and therefore the activities of services received by the Applicant from its HO cannot be said to be in course of furtherance of business, thus cannot be considered as “Supply” under section 7 of the CGST Act. No GST leviable on Amount representing Employees portion of Canteen Charges In Re: M/s.Tata Motors Ltd. CITATION:2021 TAXSCAN (AAR) 244 The Gujarat Authority of Advance Ruling (AAR) ruled that no GST is levied on the amount representing employees’ portion of canteen charges. The coram of Members Arun Saxena and Arun Richard ruled that ITC on GST paid on canteen facility is blocked credit under Section 17 (5)(b)(i) of CGST Act and inadmissible to the applicant. “GST, at the hands of the applicant, is not levied on the amount representing the employee’s portion of canteen charges, which is collected by the applicant and paid to the Canteen service provider,” the AAR said. GST applicable on Repair & Maintenance Fund and Sinking Fund In Re: M/s.FOREST COUNTY CO OPERATIVE HOUSING SOCIETY LIMITED CITATION: 2021 TAXSCAN (AAR) 262 The Maharashtra Authority of Advance Ruling (AAR) ruled that the GST is applicable on the Repair and Maintenance Fund and Sinking Fund. The applicant has sought the advance ruling on the issue of Applicability of GST on Repair and maintenance fund and sinking fund and whether or not exemption Limit of Rs.7500/- per member is applicable on above two components of maintenance bill by the housing co-operative Society to members of society. The two-member bench of Rajiv Mangoo and T.R.Ramnani ruled that GST is applicable on Repair and Maintenance Fund and Sinking Fund and if the gross amounts collected by the applicant in their bills/invoices, exceed Rs.7500/- then exemption limit of 7500 is not applicable on two components of maintenance bills. 5% GST on Supply of MDEs and parts exclusively and directly to Shipyards or Indian Navy for use in manufacture of Ships, Vessels, Boats, Floating Structures In Re: M/s. MAN Energy Solutions India Private Limited CITATION:2021 TAXSCAN (AAR) 263 The Maharashtra Authority of Advance Ruling (AAR) ruled that 5% GST on supply of MDEs and parts exclusively and directly to shipyards or Indian Navy for use in manufacture of ships, vessels, boats, floating structures. The two member bench of Rajiv Mangoo and T.R.Ramnani concluded that the supply of MDEs and parts thereof supplied by the Applicant exclusively and directly to ship building companies/shipyards or Indian Navy for use in manufacture of ships, vessels, boats, floating structures etc. will be classified under Sr. No. 252 of Notification No. 1/2017- C.T. (Rate), dated 28-6-2017. 18% GST leviable on Tertiary Treated Water supplied to MAHAGENCO In Re: M/s. Nagpur Waste Water Management Pvt. Ltd. CITATION: 2021 TAXSCAN (AAR) 264 The Maharashtra Authority of Advance Ruling (AAR) ruled that 18% GST is levied on “Tertiary Treated Water” supplied to Maharashtra State Electricity Generating Co. Ltd. (MAHAGENCO). The applicant has sought the advance ruling on the issue of whether GST is applicable on the “Tertiary Treated Water” supplied by the applicant to Maharashtra State Electricity Generating Co. Ltd. and if applicable at what rate. The two member bench of Rajiv Mangoo and T.R.Ramnani ruled that the term ‘waters’ is specifically prescribed for the levy of taxes under Entry No.24 of schedule rates. Eventually, we conclude and hold that the purified “Tertiary treated water” is covered under Entry No. 24 and 18% GST is applicable on supply of “Tertiary Treated Water”. GST: ITC not allowable on Food and Beverages consumed in Industrial Canteen, rules AAR In Re: M/s. SENOR GENERAL MANAGER ORDNANCE FACTORY CITATION: 2021 TAXSCAN (AAR) 268 The Maharashtra Authority of Advance Ruling (AAR) ruled that the Input Tax Credit (ITC) is not allowable on Food and Beverages consumed in Industrial Canteen. The coram of Rajiv Mangoo and T.R.Ramnani ruled that the exemption to a ‘defence formation for preparation and generation of E way bills is applicable to Ordnance factories & other Central Government & Public Sector Undertakings (PSU’s) that function under the Ministry of Defence. The AAR held that availing of eligible Input Tax Credit on inputs & input services relating to the main business activity of manufacturing is not allowed against GST liability on renting of immovable property. Housing Society to pay GST on Maintenance Charges if Members’ monthly contribution exceeds Rs.7,500 In Re: M/s. Emerald Court Co operative Housing Society Limited CITATION: 2021 TAXSCAN (AAR) 270 The Maharashtra Authority of Advance Ruling (AAR) ruled that housing societies should pay Good and Service Tax (GST) on Maintenance Charges if Members’ monthly contribution exceeds Rs.7,500. The coram of Rajiv Mangoo and T.R.Ramnani ruled that the applicant is liable to pay GST on maintenance charges (by whatever name called) collected from its members if the monthly subscription or contribution CE RUharged from the members is more than Rs. 7,500/- per month. 12% GST on Brush Holder Assembly, Parts, Lead Wires for Locomotives when manufactured as per drawings of Indian Railways In Re: M/s. Areo Electro Technologies Pvt. Ltd CITATION: 2021 TAXSCAN (AAR) 271 The Maharashtra Authority of Advance Ruling (AAR) ruled that 12% GST on Brush Holder Assembly, parts, Lead Wires for locomotives, Insulating Rods Locomotives only when manufactured as per drawings of Indian Railways. The coram of Rajiv Mangoo and T.R.Ramnani ruled that the products Brush Holder Assembly and parts, Lead Wires and Insulating Rods are to be classified under heading 8607 only when they are manufactured as per the drawings and specifications given to the applicant by the Indian Railways and only when the said goods are used in traction motors meant for Railway locomotives. 5% GST applicable on Scientific and Technical Instruments / Equipment supplied to Public-funded research Institutions In Re: M/s. Thermo Fisher Scientific India Pvt. Ltd CITATION: 2021 TAXSCAN (AAR) 295 The Maharashtra Authority of Advance Ruling (AAR) ruled that 5% GST on National Centre for Polar and Ocean Research, University of Delhi, Council of Scientific and Industrial Research, CSIR-North East, and Institute of Science & Technology. The coram of T.Ramnani and P.Vinitha Sekhar ruled that the applicant would be correct in charging 5% GST only in 4 cases of National Centre for Polar and Ocean Research, the University of Delhi, Council of Scientific and Industrial Research CSIR-North East, and Institute of Science & Technology where all the conditions mentioned in the impugned Notifications are found be satisfied and the necessary and proper certificates, complete in all ruling respects as mandated by the relevant Notifications have been produced. 12% GST on Service of Operating Mini AC Buses In Re: M/s. M P ENTERPRISES & ASSOCIATES LIMITED CITATION: 2021 TAXSCAN (AAR) 297 The Maharashtra Authority of Advance Ruling (AAR) ruled that 12% GST on service of operating mini AC buses. The coram of T.Ramnani and P.Vinitha Sekhar ruled that service of operating mini AC buses by the applicant for Brihan Mumbai Electricity Supply Transport Undertaking (BEST) would not be exempted from payment of GST under Tariff Heading 9966. The AAR ruled that service of operating mini AC buses by the applicant for BEST would be subject to 12% GST under Tariff Heading 9966 with effect from October 13, 2017. GST payable by Liaison Office of Dubai Chamber of Commerce as Services provided to various Business in India, Dubai In Re: M/s. Dubai Chamber of Commerce And Industry CITATION: 2021 TAXSCAN (AAR) 303 The Authority of Advance Ruling (AAR), Maharashtra ruled that the Goods and Service Tax is payable by the Liaison office of Dubai Chamber of Commerce and Industry as services provided to various businesses in India and Dubai. The coram of P.Vinitha Sekhar and T.R.Ramnani noted that activities undertaken by the DCCI is nothing but “Business”. The terms “Supply” and “Business” are defined under GST Act, in an inclusive manner and have wide connotations. Hence the reply filed by the applicant to cross objection is incorrect. Activities undertaken by the applicant are covered by the scope of word “commerce”, “Business” and also covered under the scope of “Supply”. No GST on Service of providing Manpower to Municipal Corporation for collecting Vehicle Parking Fees In Re: M/s Work Group Sushikshit Berojgar Nagrik Sewa Sahkari Sanstha Maryadit Amravati The Maharashtra Authority of Advance Ruling (AAR) held that the GST is not applicable in service of providing manpower to the Municipal Corporation for collecting vehicle parking fees. The coram consists of T.R. Ramnani and P.Vinitha Shekhar ruled that the services provided by the Applicant are covered under Clause 1 & 2 of Twelfth Schedule of Article 243W which relates to the pure services (excluding works contract service or other composite supplies involving supply of any goods) provided to a Governmental Authority by way of any activity in relation to any function entrusted to a Panchayat or Municipality. GST applicable on providing Labour to Municipal Corporation In re: M/s Janaki Sushikshit Berojgar Nagrik Seva Sahakari Sanstha Maa Amaravati The Maharashtra Authority of Advance Ruling (AAR) ruled that GST is applicable on providing labour to the municipal corporation.The coram consists of T.R. Ramnani and P.Vinitha Shekhar ruled that the services provided by the Applicant are not covered under Clause 1 & 2 of Twelfth Schedule of Article 243W. The Authority held that the meals provided to Government Ashrams for economically weaker class of students does not fall within Clause 1 & 2 of Twelfth Schedule of Article 243W. 18% GST applicable to Service of Online Gaming In re: Amogh Ramesh Bhatawadekar The Maharashtra Authority of Advance Ruling (AAR) ruled that 18% GST applicable on the service of Online Gaming. The Applicant, Mr. Amogh Ramesh Bhatawadekar is a supplier in digital goods i.e. online games. He is located at Thane and has not obtained GSTIN under the impression that whatever services they are rendering is export of e-goods. It is a proprietary concern. The coram consists of T.R. Ramnani and P.Vinitha Shekhar ruled that E-goods, in this case ‘Online Gaming’ will be covered under services under the GST Act. 18% GST on Financial Assistance as covered under ‘Consideration for Supply’ In re: M/s Prettl Automotive India Private Limited The Maharashtra Authority of Advance Ruling (AAR) held that 18% GST on Financial assistance, as it is covered under “consideration for supply”. The coram consists of T.R. Ramnani and P.Vinitha Shekhar held that the financial assistance to be received by the Applicant is covered as consideration for supply and the activity is covered under the meaning of supply of services in terms of Section 7 of the CGST Act, 2017/MGST Tax Act, 2017. The AAR held that the same is not covered as “Zero Rated Supply” and does not qualifies as “export of service” under the provisions of Integrated Goods and Services Tax Act, 2017 and cannot be exported without payment of IGST. CST & VAT / GST GST: Conversion of Waste Sand to usable sand is ‘Manufacture’ and not ‘Job Work’, says AAR In Re: Kolhapur Foundry and Engineering Cluster CITATION: 2020 TAXSCAN (AAR) 123 The Maharashtra Authority of Advance Ruling (AAR) ruled that the conversion of waste sand to usable reclaimed sand can be regarded as manufacture and distinct from job work. Therefore, the Authority has ruled that conversion of waste sand sent by principal to job worker by the latter to get sand which is usable in foundries would be a process which has to be regarded as manufacture. This cannot be regarded as mere job work. Consequently taxability of the final product as goods would be appropriate. The waste sand received at NIL value from principal can also be said to influence the value of the final product where it was found to be marginally lower than market price for fresh sand. ITC available on GST charged by Service Provider on Hiring of Bus / Motor Vehicle for Transportation of Employees to & from Workplace In re: M/s TATA Motors Limited The Maharashtra Authority of Advance Ruling (AAR) ruled that the Input Tax Credit (ITC) is available to Applicant on GST charged by the service provider on the hiring of bus/motor vehicle having a seating capacity of more than thirteen people for the transportation of employees to & from the workplace but only after February 1, 2019. The two-member bench of A.A. Chaure and P.Vinitha Sekhar ruled that GST not be applicable on nominal amount recovered by Applicants from employees for usage of employee bus transportation facility in non-air conditioned bus. GST: Work Contracts are applicable on Immovable Property, where Goods and Services aren’t distinct, says AAR In re: M/s Prasa Infocom & Power Solutions Private Limited The Maharashtra Authority of Advance Ruling (AAR) ruled that Work Contracts are applicable on immovable property, where goods and services are not distinct. The Authority consists of members A.A. Chahure and P. Vinitha Shekhar agreed with the submissions of the jurisdictional officer and held that the supply of goods and service by the applicant to Cray Inc. does not qualify as a “works contract” as defined under Section 2(19) of the Central Goods and Services Tax Act, 2017 (CGST Act). Shatamrut Chayavan is an exempted Good, attracts no GST In re: M/s Madhurya Medicals The Maharashtra Authority of Advance Ruling (AAR) ruled that Shatamrut Chayavan is an exempted good, and attracts no GST. The Authority consists of members A.A. Chahure and P. Vinitha Shekhar ruled that the subject has rightly classified “Shatamrut Shravan'' falling under TSH 23099010 of Customs Tariff Act, 1975 as adopted to GST attracting Nil rate of IGST as per List of Exempted Goods as per Sr. No. 702 of Notification No. 02/2017 – Central Tax (Rate) dated June 28, 2017. GST: No Input Tax Credit can be claimed on Purchase of Paver Blocks laid on Land, rules AAR In re: M/s Sundarams Private Limited The Maharashtra Authority of Advance Ruling (AAR) ruled that Input Tax Credit (ITC) cannot be claimed on the purchase of paver blocks laid on land. The applicant sought the advance ruling on the issue of whether the applicant is entitled to avail Input tax credit under CGST in respect of taxes to be paid on its purchase of Paver Blocks laid on the land. The Authority consists of members A.A. Chahure and P. Vinitha Shekhar ruled that the subject, paver blocks would qualify as immovable property and therefore Applicant cannot avail ITC in the subject case as per Section 17(5) (d) of the CGST Act, 2017. GST applicable on Activity of Collection of Property Taxes and Water Charges by Society for paying to Municipal Corporation In re: Apsara Co-operative Housing Society Limited The Maharashtra Authority of Advance Ruling (AAR) ruled that the activities of Property Taxes and water charges collected by society for paying to Municipal Corporation are covered under Section 7 of the CGST Act. The applicant sought the advance ruling on the issue of whether the Activities of Property Taxes and water charges collected by society for paying to Municipal Corporation are covered under Section 7 of the CGST Act. The Authority consists of Members A.A. Chahure and P.Vinitha Shekhar ruled that the Activities of Property Taxes and water charges collected by society for paying to Municipal Corporation are covered under Section 7 of CGST Act. Renting entire Villa to One Client, will be considered ‘One Unit’ In re: Isprava Hospitality Private Limited The Maharashtra Authority of Advance Ruling (AAR) ruled that renting an entire villa to one client, will be considered ‘One Unit’ as specified under Chapter, Section, or Heading 9963 under entry no. 7 of the Notification No. 11/2017-Central Tax (Rate) dated 28 June 2017. The applicant sought the advance ruling on the issue of what is the meaning of “Per Unit” as specified under Chapter, Section, or Heading 9963 under entry no. 7 of the Notification No. 11/2017-Central Tax (Rate) dated 28 June 2017. GST: Mapping Services are Pure Labour Services provided to Municipalities/ Govt. falls under Article 243W, eligible for Exemption, says AAR In re: Core Project Engineers & Consultants Private Limited The Maharashtra Authority of Advance Ruling (AAR) ruled that the mapping services are Pure Labour Services provided by the applicant to Municipalities or Government falls under Clause 1 and 2 of 25th Schedule of Article 243W and so it is eligible for exemption under notification 12/2017 dated June 28, 2017. The authority consists of members A.A. Chahure and P. Vinitha Sekhar ruled that the mapping service are Pure Labour Services provided by the applicant to Municipalities or Government falls under Clause 1 and 2 of 25th Schedule of Article 243W and so it is eligible for exemption under notification 12/2017 dated June 28, 2017. Services rendered by Sub-Contractor will not be classified as GTA as main contractor is classified as GTA In re: M/s Liberty Translines The Maharashtra Authority of Advance Ruling (AAR) ruled that the service rendered by the Applicant to POSCO ISDC Pvt. Ltd. as a sub-contractor would not be classified as GTA service when the service rendered by POSCO ISDC Pvt. Ltd. as the main contractor, is already classified as GTA service (SAC 996791) and is going to remain unchanged. The applicant sought the advance ruling on the issue whether the service rendered by the Applicant to POSCO ISDC Pvt. Ltd. as a sub-contractor would be classified as GTA service (SAC 996791) when the Service rendered by POSCO ISDC Pvt. Ltd. as the main contractor, is already classified as GTA service (SAC 996791) and is going to remain unchanged. The Authority consists of members A.A. Chahure and P. Vinitha Sekhar ruled that the service rendered by the Applicant to POSCO ISDC Pvt. Ltd. as a sub-contractor would not be classified as GTA service when the service rendered by POSCO ISDC Pvt. Ltd. as the main contractor, is already classified as GTA service (SAC 996791) and is going to remain unchanged. No ITC can be claimed for GST Paid on Input Service used for Construction of Commercial Property M/s Ashish Arvind Hansoti The Maharashtra Authority of Advance Ruling (AAR) ruled that the Input Tax Credit (ITC) cannot be claimed for the Goods and Service Tax (GST) paid on input and input services used for the construction of the commercial property. The applicant sought the advance ruling on the issue of whether an applicant is eligible to claim an input tax credit of GST paid on input & input services used for the construction of a commercial immovable property, subsequently used for renting. “We are of the opinion that since the case of M/s. Safari Retreats Pvt. Ltd. is pending with the Hon’ble Supreme Court, has not attained finality. We also find that the Hon’ble High Court has given the relief to the party invoking its writ jurisdiction while categorically holding that they are not inclined to hold Section 17(5)(d) to be ultra vires. Therefore, we are not relying upon the judgment of the Hon’ble High Court,” the AAR said. GST AAR can’t rule on classification of Imported Goods M/s A Raymond Fasteners India Pvt. Ltd. The Maharashtra Authority of Advance Ruling (AAR) said that AAR is not allowed to answer the question on the classification of imported goods since the same is out of the purview of Section 95 of the CGST Act. The Authority consists of members A.A. Chahure and P. Vinitha Sekhar said that AAR is not allowed to answer the question on the classification of imported goods since the same is out of the purview of Section 95 of CGST Act. “For queries with respect to the classification of imported goods, there are separate Regulations viz. ‘Authority for Advance Ruling (Central Excise, Custom and Service Tax) Procedure Regulations, 2005’ and as per the said Regulations, the AAR of Central Excise, Custom and Service Tax, 2005 is the appropriate authority to answer the questions related to the classification of imported goods,” the GST AAR added. No GST on Salary Expenses Accounted to meet Indian Accounting Requirements M/s Hitachi Power Europe Gmbh The Maharashtra Authority of Advance Ruling (AAR) ruled that Goods and Service Tax (GST) is not applicable to salary expenses accounted to meet Indian accounting requirements. The Authority consists of members A.A. Chahure and P. Vinitha Sekhar said that AAR is not allowed to answer the question on the classification of imported goods since the same is out of the purview of Section 95 of CGST Act. “For queries with respect to the classification of imported goods, there are separate Regulations viz. ‘Authority for Advance Ruling (Central Excise, Custom and Service Tax) Procedure Regulations, 2005’ and as per the said Regulations, the AAR of Central Excise, Custom and Service Tax, 2005 is the appropriate authority to answer the questions related to the classification of imported goods,” the GST AAR added. Laboratory Medical Equipment can’t be sold to Distributor at Concessional Rate of GST In re: M/s Equitron Medica Private Limited The Authority of Advance Ruling (AAR) Maharashtra has ruled that manufacturers of laboratory medical equipment are not eligible to concessional GST rates when supplied to distributors. The Authority benched by Addl. Commissioner of Central Tax Ms. P. Vinitha Sekhar and Joint Commissioner of Sales Tax Shri A. A. Chahure held that “we find that the applicant does not supply goods to the end-users who undertake or are engaged in the scientific research. The goods are supplied to their distributors only. The said notification requires the said certificate to be issued to the supplier who in the subject case, is the distributor and not the applicant. In this view, we hold that the applicant cannot sell their product to their dealers/ distributors by charging Goods and Service Tax (GST) @5% as per notification no.s 45/2017 & 47/2017”. GST Paid on Maintenance Charges by Co-operative Housing Society, not eligible to claim ITC in the cases of Replacement of Existing Elevator In re: M/s LAS Palmas Co-operative Housing Society Limited The Maharashtra Authority of Advance Ruling (AAR) on an application filed by the applicant held that Goods and Service Tax (GST) paid by any co-operative housing society on the maintenance charges, which is paid by its members are not eligible to claim the Input Tax Credit (ITC) in the cases of the replacement of existing elevator at its own premises. Maharashtra Authority of Advance Ruling (AAR) comprising of Ms. P. Vinitha Sekhar, Additional Commissioner of Central Tax, and Shri A. A. Chahure, Joint Commissioner of State Tax while taking into consideration the decision of the Supreme Court in the cases of Triveni Engg. Industries Ltd. vs. C.C.E. and Quality Steel Tubes (P) Ltd. vs. C.C.E., U.P. held that Goods and Service Tax (GST) paid by any co-operative housing society on the maintenance charges, which is paid by its members, is not eligible to claim the Input Tax Credit (ITC) in the cases of the replacement of existing elevators at its own premises. 18% GST applicable on Transformers supplied to Indian Railways In re: M/s Rishab Industries The Maharashtra Authority of Advance Ruling (AAR) on an application made by an applicant held that the ‘transformers’ supplied to Indian Railways is covered under HSN ‘8504’ and Sr. No. 371 of Schedule III of the notification 1/2017 pertaining to the central Tax (Rate) and as a consequence the applicant is liable to pay @18% of Goods and Service Tax (GST). The Maharashtra Authority of Advance Ruling (AAR) comprises Smt. P. Vinitha Sekar, Additional Commissioner of Central Tax and Shri. A.A. Chahure, Joint Commissioner of State tax held that the transformers supplied by the applicant to the Indian Railways are covered under HSN ‘8504’ and Sr. No. 371 of Schedule III of the notification 1/2017 pertaining to the central Tax (Rate) and as a consequence, the applicant is liable to pay @18% of Goods and Service Tax (GST). No Exemption on TDR or FSI for Construction of Commercial Apartments In re: M/s Vilas Chandanmal Gandhi The Maharashtra Authority for Advance Ruling (AAR) has held that Goods and Services Tax (GST) leviable on sale of Transferable Development Right (TDR) or Floor Space Index (FSI) received for construction of commercial apartments. The Authority for Advance Ruling (AAR) bench composed of Additional Commissioner, Vineetha Sekhar and Joint Commissioner, A A Chahure delivered the order based on an application filed by Vilas Chandhanmal Gandhi. The Authority further observed that there is no exemption on TDR or FSI(including additional FSI) for construction of commercial apartments and Goods and Services Tax(GST)shall be payable on TDR or FSI(including additional FSI) or both used in respect of (1) carpet area of commercial apartment and (2) unbooked residential apartments as on the date of issuance of Completion Certificate or first occupation of the project for the purpose of formula. Dealers eligible for ITC on Demo Cars In re: M/s Chowgule Industries Private Limited The Maharashtra Authority for Advance Ruling (AAR) held that Input tax credit (ITC) charged on inward supply of demo cars which is used for Demonstration purpose in the course of business of supply of Motor Vehicle as an input tax credit (ITC) on capital goods and the same can be utilized for payment of output tax payable under this Act. The applicant is entitled to avail Input tax credit (ITC) charged on inward supply of Motor Vehicle which is used for Demonstration purpose in the course of business of supply of Motor Vehicle as an input tax credit (ITC) on capital goods and the same can be utilized for payment of output tax payable under this Act. Building Completion and Finishing Services is Single Service, attracts 18% GST M/s Shapoorji and Company Private Limited The Maharashtra Authority for Advance Ruling (AAR) on filing an application by the applicant Shapoorji Pallonji and Company Private Limited addressed the issues and held that building completion and finishing services will be regarded as a single service and not the separate services and 18% GST will be applicable. While addressing the issues the bench composed of P. Vinitha Sekhar, Addl. Commissioner of Central Tax and A.A. Chahure, Joint Commissioner of State Tax held that the applicant was eligible for the concessional rates of GST. Further, the bench also held that both building completion and finishing services are regarded as a single service and not a separate service. The bench stated that 18% of GST will be applicable in the case of contracting services that do not fit in the criteria of low-cost houses. Supply of UPS System along with its Installation, Testing and Commissioning to constitute Composite Supply M/s Vertive Energy Private Limited The Maharashtra Authority of Advance Rulings ( AAR ) in an application filed by Vertiv Energy Pvt Ltd held that supply of UPS systems along with the provision of services of its installation, testing and commissioning constitutes a composite supply. The Bench consists of members B. Timothy and A.A. Chahure held that the contract would not qualify as a supply of works contract u/s 2(119) of the CGST Act since the same does not lead to the emergence of immovable property. The Bench found that the applicant first dispatches the goods to DMRC under an Invoice and E Way Bill. Hence, the title in property of the said goods is transferred as soon as the delivery is completed. It is after such delivery that the installation takes place. Support our journalism by subscribing to Taxscan premium. Follow us on Telegram for quick updates

Complete Case Digest of Maharashtra AAR (Part 2)

Your free access to Taxscan has Expired

To read the article, get a premium account.

Taxscan Premium

Topics