This yearly digest analyzes all the Goods and Services Tax (GST) AAR and AAAR stories published in the year 2023 at taxscan.in
The Maharashtra Authority for Advance Ruling (AAR) has held that the supply of garbage tipper vehicles by TATA Motor Vehicle would attract 28% of Goods and Service Tax (GST). The Maharashtra bench of Rama Mohan Rao and TR Ram Nani held that the vehicle manufactured by the applicant could not be termed as the special purpose vehicle and the certificate issued by the applicant itself had mentioned the vehicle as a good carrier. The bench further held that the vehicle would come under the entry of 8074 as motor vehicle for transportation of goods only and the applicant had already admitted the fact and the bench further ruled that the GST @ 28% instead of 18% rate would be applied on the garbage vehicle supply.
The Maharashtra Authority for Advance Ruling (AAR) has held that the Integrated Goods and Service Tax (IGST) would be applied to transfer of monetary proceeds by IVL India under the reverse charge mechanism. The two-member bench of M. Rammohan Rao (additional commissioner of income tax – member)and T.R. Ramanan i(joint commissioner of state tax-member) observed that as the applicant had received support services from IVL Sweden, which was located in a non-taxable territory, the entire integrated tax leviable under Section 5 of the Integrated Goods and Services Tax Act should be paid on the reverse charge basis by the applicant for such services.
The Authority for Advance Ruling (AAR) Maharashtra, ruled that Pallets, crates leased by CHEP India Private Limited (CHPL), in Maharashtra to other GST Registrations located in India, is lease transaction and taxable as supply of services. A Two Member Bench of the Authority comprising M Rammohan Rao and T R Ramnaniruled that “Pallets, crates and containers leased by CHEP India located and registered in Maharashtra to its other GST registrations located across India is considered as lease transaction and accordingly taxable as supply of services in terms of Section 7 of the CGST Act and MGST Act.”
The Maharashtra Authority of Advance Ruling (AAR) has held that Input Tax Credit (ITC) is not available on goods and services consumed for the construction of a pipeline which was laid outside the factory premises. The two-member bench of M. Rammohan Rao and T.R. Ramnani has ruled that pipelines laid outside factory premises are not covered within the term ‘plant and machinery’ as per Explanation to Section 17(5)(c) and 17(5)(d) of the Central Goods and Services Tax Act, 2017 (“the CGST Act”), and therefore the inputs used for construction of such pipeline outside the factory are not eligible to Input Tax Credit (“ITC”).
The Maharashtra Authority for Advance Ruling (AAR), held that no ruling can be given on past and completed supply, thereby ruling against United Breweries Limited, the applicant. A Two Member Bench of the Authority comprising M Rammohan Rao and TR Ramnani, ruled that “Based on the submissions made by the applicant and hearings conducted, the subject application is rejected as being non-maintainable as per Section 95 of the CGST Act, 2017 because the questions raised by the applicant 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.”
Although the oil is marketed as lamp oil, the Tamil Nadu Authority for Advance Ruling (AAR) declared that the classification may only be done based on the components of the item and not the end use of the oil.The bench of N. Usha and R. Gopalasamy observed that the RBD Palmolein Oil is a fraction of Palm Oil obtained by a process called fractionation.
Furthermore, it was noted that the production procedure for their “Roobini”-branded edible RBD palmolein is the same as the production process for Mahara Jyothi. Mahara Jyothi has no additives added, and its packaging bears the same FSSAI licence number as that for Roobini Refined Palmolein because both products go through the same manufacturing procedure.The authority ruled that the Mahara Jyothi oil, which is an edible RBD Palmole in without any additives or mixture of other oils, is classifiable under the Tariff Head 1511 90 20.
The Tamil Nadu Authority for Advance Ruling (TN AAR) ruled that 18% Integrated Goods and Services Tax (IGST) is applicable on the mattresses supplied to the educational institutions of both Karnataka State and other states. The Applicant, Hosur Coir Foams Private Limited, submitted that they are manufacturer and supplier of Rubberized Coir Mattresses and Bare Blocks and claims that their supply to educational institutions are exempted.
The panel of N. Usha and R. Gopalasamy ruled that the mattresses, classified by the applicant under HSN 940429, supplied by the applicant in the State of Tamil Nadu to hostel students of Government Schools, educational institutions of Government of Karnataka under Department of Social Welfare, through M/ s Coir Industrial Co-operative Society Limited is liable to 18% IGST. Additionally, it was stated that the same 18% IGST rate will be applicable to other states also.
The Tamil Nadu Authority for Advance Ruling (TNAAR) determined that services, including services of common employees provided by a branch office to the head office and vice versa shall be subject to GST obligation under the relevant acts.The panel of N. Usha and R. Gopalasamy stated that the statutory provisions of the Central Goods and Services Act (CGST Act), 2017, any supply of service between two registrations of the same person in the same State or in different States attract the provisions of Section 25 (4) and Section 7 read with Schedule I (2) and Section 15. Section 25(4) of CGST Act, states that ‘a person who has obtained or is required to obtain more than one registration, whether in one State or Union territory or more than one State or Union territory shall, in respect of each such registration, be treated as distinct persons for the purposes of this Act.
The Tamil Nadu Authority for Advance Ruling (AAR) ruled that the civil contracts provided by the applicant to the Indian Institute of Technology, Madras attract 18% Goods and Services Tax (GST).The Applicant’s customer Indian Institute of Technology, Madras claimed that the rate of GST is 12% for Civil Contract Services with effect from 01.01.2022 even after amendment to Notification No.11/2017 C.T.(Rate) vide Notification No.15/2021 C.T.(Rate) dated 18.11.2021. The panel of N. Usha and R. Gopalasamy observed that Section 3 (j) (iii) of The Institutes of Technology Act, 1961 that IIT, Madras is a ‘Society’ registered under the Societies Registration Act, 1860, conferred with the status of ‘body corporate’ by Section 4 (1) of the said Act for the promotion of science, education, diffusion of useful knowledge, etc. under the control of Central Government.
The Tamil Nadu Authority for Advance Ruling (TN AAR) bench consisting N. Usha (SGST member) and R. Gopalasamy (CGST member) allowed the application to withdraw the advance ruling application without going more into the detailed facts of the case. The authority noted that there was no need to make a decision in advance because the central government had revoked the notification on which the applicant wanted clarification by issuing a new notification.
The application was filed as an Advance Ruling Application (ARA) seeking the concessional rate of GST @ 5% on supply of scientific and technical instruments, apparatus, equipment to their customer.
The Tamil Nadu Authority for Advance Ruling (AAR) has held that the Goods and Service Tax would be applicable on the products manufactured as pasteurised milk and milk cream in the name of “Jigarthanda”. The applicant Madurai Famous Jigarthanda LLP was engaged in manufacturing dairy products in the name of “Jigarthanda” packed in unit container with Brand name and also in loose form bearing details like name of manufacturer or branches or others as required by the Food Safety and Standards Act 2006(FSSAI) or other relevant Acts, to consumers.
It was ruled that “Jigarthanda” was a taxable goods as it was covered under Notification No.1/2017 CTR dated 28.06.2017serial No.50 of Schedule II as “Beverages containing milk” attracting CGST at 6% and SGST at 6% vide serial No.50 of Schedule II of G.O. (Ms.) No. 62 dated 29.06.2077 for intra state supply. It attracts 12% IGST vide serial No.50 of Schedule II of Notification No. 1/2017 Integrated Tax (Rate) dated 28.06.2017 under HSN 2202 99 30.
The Tamil Nadu state Appellate Authority for Advance Ruling ( AAAR ) has stated that Goods and Service Tax (GST) would be applicable to work contract services for the construction of residential quarters for the employees of Nuclear Power Corporation of India Ltd (NPCIL).
The Appellate Authority for Advance Ruling (AAAR) of Mandalika Srinivas, Member (Centre) And Dheeraj Kumar, Member (State) held that, as per amendment made to the entry 3(vi) of Notification No. 11/2017-C.T.(Rate) dated 28.06.2017 vide Notification No. 15/202l-C.T.(Rate) dated 18.11.2021 effective from 01.01.2022, ‘Government entity’ would be omitted in the class of recipients. Therefore, the applicable rate of tax for the above work would be 9% of COST plus 9% of SGST as per entry SI.No. 3(xii) of Notification No. 11/2017-C.T.(Rate) dated 28.06.2017 (as amended) read with the corresponding Notification under TNGSTA.
The Tamil Nadu Authority for Advance Ruling (AAR) has held that 5% of Goods and Service Tax (GST) would be applicable to supply of dried Coconut manufactured and supplied by EMS COCO.
The Authority for Advance Ruling of R. Gopala swami (Additional Commissioner) and N. Usha (Joint Commissioner) observing the finance ministry circular 163/1923 GST held that, “The whole unbroken kernel could be taken out of the shell only when it converts to copra. The Applicant takes the copra cut into half, sun dries and segregates manually based on the round shape of copra, free of dirt/dust and sends it as edible copra and the rest of copra which are irregularly shaped, dusty are sent to oil milling units. But as the
The Tamilnadu Authority for Advance Ruling (AAR) has recently held that bus body building activity attracts 18 percent Goods and Service Tax. The applicant Royal coach builders is a proprietrix concern engaged in bus body building activity who are constructing the body over the chassis supplied by the customers according to their requirements.
After considering the submissions made by the applicant and central and state jurisdictional authorities the member of authority N Usha and R Gopalaswamy ruled that “activity of bus body building undertaking on the chassis supplied by the customer to the applicant amount to supply of service as per schedule II cause 3 Of CGST Act 2017 and will be attract 18% GST.
The Tamil Nadu Authority for Advance Ruling (AAR) held that the applicant, VBC Associates is not eligible for claim of Input Tax Credit (ITC), as per Section 17 (2) of the CGST /TNGST Act read with Rule 43(a) of CGST /TNGST Rules 2017, on the Goods/Services used in installation of Solar Power Panels, which are considered as Plant and Machinery.
The applicant has sought advance ruling on whether the input tax credit on solar power ruling is required panels procured and installed is blocked credit under section 17(5) (c) and (d) of CGST/TNGST Act, 2017 and admissibility of Input tax credit of tax paid or deemed to have been paid.The Two member bench of the Authority comprising TG Venkatesh and K Latha observed that goods/ Services for installation of Solar Power Panel are Plant and Machinery, ineligible for ITC.
The Authority for Advance Ruling (AAR) bench of Dr M. P. Ravi Prasad and Kiran Reddy T Karnataka ruled that a 5% Goods and Services Tax (GST) is applicable to Bio-Phosphate.
The bench observed that the impugned product is said to have been manufactured/prepared by blending the carrier material Rock Phosphate with Phosphate Solubilizing Fungal and Bacterial cultures supplemented with essential mineral nutrients, which are crop nutrients and fertilizers.
It was observed by the members that heading 3103 covers Minerals or chemical fertilisers of phosphatic in nature. Further heading 3103 10 00 covers superphosphates and heading 3103 90 00 covers other phosphatic fertilisers
The Karnataka bench of Dr M.P Ravi Prasad (Member) and Kiran Reddy T (Member), Authority for Advance Ruling (AAR), has recently, in an application filed before it, held that renting of commercial buildings is taxable under GST.
The bench determined that “The GPA is the supplier of service and is liable to be registered in
Karnataka under KGST/CGST Act, 2017. The GPA holder is required to pay tax on the supply of renting of immovable property service of commercial building”
The Rajasthan bench of Umesh Kumar Garg and Mahesh Kumar Gowla Authority for Advance Ruling (AAR) ruled that the supply of precast manholes using the steel and cement within the scope of the recipient is a supply of goods and 18% Goods and Services Tax (GST) is applicable.
The bench observed that it is imperative or any act to be of service should not be goods. It would be worthwhile to mention that the applicant himself stated that he has intention to manufacture and supply recast Manholes and Rises. Further, from the definition of supply, services, the applicant is to manufacture and supply Precast Manholes and Rises as per specific order from
recipient but cement and iron is to be supplied by recipient on free of cost whereas if the recipient will not supply these main ingredients then it will be borne by the applicant itself.
The Karnataka bench of Dr M P Ravi Prasad and Kiran Reddy T Authority for Advance Ruling (AAR) ruled that the products are wooden ice cream sticks and wooden ice cream attracts 12% Goods and Services Tax (GST).
The bench observed that the contested objects, namely wooden sticks and wooden spoons, are made of a specific wood European White Birch (Betula Pendula) sourced from a Siberian forest and hence qualify as articles of wood. The bench then looked into a potential alternative classification for the contested products. We discovered that heading 4419 covers wood tableware and kitchenware and in particular 4419 90 covers wood tableware and kitchenware other than bamboo wood.
The Rajasthan bench of Umesh Kumar Garg and Mahesh Kumar Gowla Authority for Advance Ruling (AAR), after examination of all conditions and considering the nature of supply, ruled that the invoice raised by the Applicant for reimbursement of the salary/ staff cost on M/s. Adani Jaipur International Airport Limited is a consideration for supply which falls under the ambit of manpower service and hence taxable at the rate of 18% Goods and Services Tax (GST)
The authority observed that the emoluments received by the AAI form a part of services by transfer of outgoing concern. It seems the supply of manpower services by AAI to the M/s. Adani Jaipur International Airport Limited (SPV). The bench stated that there is no case for exemption on the reimbursement of emolument of employees to the AAI as services of manpower supply is
provided by one distinct entity to another distinct entity where transfer of business as a going concern is not a precondition nor this supply of manpower services is a corollary to the agreement for transfer by outgoing concern for the operations management and development of the airport.
The Tamil Nadu bench of N. Usha and R. Gopalasamy , Authority for Advance Ruling (TN AAR) ruled that the services provided by the United Planters Association of Southern India (UPASI), a non- profit organisation to its registered members on the payment of amount towards subscription above ₹1000 is taxable.
The panel ruled that the applicant is eligible to claim exemption vide serial number 77A of
Notification No. 12/2017 Central Tax (Rate) as amended by Notification No. 14/2017 Central Tax (Rate) in respect of subscription received from natural persons who are farmers simpliciter and the annual aggregate subscription amount for all membership, under various nomenclature, up to Rs.1000.
Although the oil is marketed as lamp oil, the Tamil Nadu bench of N. Usha and R. Gopalasamy Authority for Advance Ruling (AAR) declared that the classification may only be done based on the components of the item and not the end use of the oil.
The bench observed that the RBD Palmolein Oil is a fraction of Palm Oil obtained by a process called fractionation. Furthermore, it was noted that the production procedure for their “Roobini”- branded edible RBD palmolein is the same as the production process for Mahara Jyothi. MaharaJyothi has no additives added, and its packaging bears the same FSSAI licence number as that for Roobini Refined Palmolein because both products go through the same manufacturing procedure.
The authority ruled that the Mahara Jyothi oil, which is an edible RBD Palmole in without any additives or mixture of other oils, is classifiable under the Tariff Head 1511 90 20
The Tamil Nadu bench of N. Usha and R. Gopalasamy Authority for Advance Ruling (TN AAR) ruled that 18% Integrated Goods and Services Tax (IGST) is applicable on the mattresses supplied to the educational institutions of both Karnataka State and other states.
The panel observed that the mattresses, classified by the applicant under HSN 940429, supplied by the applicant in the State of Tamil Nadu to hostel students of Government Schools, educational institutions of Government of Karnataka under Department of Social Welfare, through M/ s Coir Industrial Co-operative Society Limited is liable to 18% IGST. Additionally it
was stated that the same 18% IGST rate will be applicable to other states also.
The Tamil Nadu bench of N. Usha and R. Gopalasamy Authority for Advance Ruling (TNAAR) determined that services, including services of common employees provided by a branch office to the head office and vice versa shall be subject to GST obligation under the relevant acts.
The panel stated that the statutory provisions of the Central Goods and Services Act (CGST Act), 2017, any supply of service between two registrations of the same person in the same State or
in different States attract the provisions of Section 25 (4) and Section 7 read with Schedule I (2) and Section 15.
Section 25(4) of CGST Act, states that ‘a person who has obtained or is required to obtain more than one registration, whether in one State or Union territory or more than one State or Union territory shall, in respect of each such registration, be treated as distinct persons for the purposes of this Act.
The Tamil Nadu bench of N. Usha and R. Gopalasamy, Authority for Advance Ruling (AAR) ruled that the civil contracts provided by the applicant to the Indian Institute of Technology, Madras attract 18% Goods and Services Tax (GST).
The bench observed that Section 3 (j) (iii) of The Institutes of Technology Act, 1961 that IIT, Madras is a ‘Society’ registered under the Societies Registration Act, 1860, conferred with the status of ‘body corporate’ by Section 4 (1) of the said Act for the promotion of science, education, diffusion of useful knowledge, etc. under the control of Central Government. However, after omission of ‘Government Entity’ from the description of service under the vide Notification
No.15/2021 C.T (Rate) dated 18.11.2021 read with Notification No.22/2021 c.T (Rate) dated 31.12.2021 with effect from 01.01.2022, the services of the applicant is covered under serial number 3 (xii) of Notification No. 11/2017 C.T (Rate) dated 28.06.2017 and attract CGST of 9%.
The Tamil Nadu Authority for Advance Ruling (TN AAR) bench consisting N. Usha (SGST member) and R. Gopalasamy (CGST member) allowed the application to withdraw the advance ruling application without going more into the detailed facts of the case.
The authority noted that there was no need to make a decision in advance because the central government had revoked the notification on which the applicant wanted clarification by issuing a new notification.
Support our journalism by subscribing to Taxscan premium. Follow us on Telegram for quick updates
