AAR and AAAR Weekly Round Up
Read on to know the recent AAR and AAAR matters covered at taxscan.in.
This round-up analytically summarises the key rulings of the Goods and Services Tax Authority for Advance Ruling (AAR) and Appellate Authority for Advance Ruling (AAAR) reported at Taxscan.in during the period from September 13, 2025 to October 18, 2025.
Subscription and Redemption of Mutual Fund Units amounts to Sale: AAAR on Zydus Lifesciences Ltd.’s Appeal In Re: M/s.Zydus Lifesciences Ltd. CITATION : 2025 TAXSCAN (AAAR) 119
The bench of the Appellate Authority for Advance Ruling (AAAR), Ahmedabad, Gujarat (GAAAR) applying the common parlance test to held that the subscription and redemption of mutual fund units amount to a sale transaction, upholding the ruling of the Gujarat Authority for Advance Ruling (GAAR).
The bench comprising of Rajeev Topno, SGST Member and Sunil Kumar Mall, CGST Member, observed that the law explicitly includes transactions in securities, such as mutual fund units, in the valuation of exempt supplies.
The bench held that the redemption of mutual fund units amounts to sale in commercial parlance as it signifies selling mutual fund units back to the Asset Management Company according to the definitions provided by HDFC Mutual Fund, Bajaj Finance Limited, and the Association of Mutual Funds in India (AMFI), the Authority stated that redemption.
AAR rejects Rice Exporter’s Application on Packaged Rice citing Ongoing GST Audits In Re: M/s OlamAgri India Private Llmited CITATION : 2025 TAXSCAN (AAR) 167
The Authority for Advance Ruling (AAR), Andhra Pradesh Bench rejected an application seeking clarity on the GST liability for exports of pre-packaged and labelled rice. The order was dismissed on procedural grounds after it was found that the specific questions raised were already subject to ongoing audit and adjudication proceedings for previous financial years.
Citing the first provision to Section 98(2) of the CGST/APGST Act, 2017, the AAR stated it cannot admit an application if the question raised is already pending or decided in any proceedings under the Act against the applicant. Since the matter was sub-judice in earlier periods, the authority found the present application liable for rejection.
The bench, comprising K. Ravi Sankar, Commissioner of State Tax, and B. Lakshmi Narayana, IRS, Additional Commissioner of Central Tax, unanimously issued the order rejecting the plea.
Exporting Packaged Goods? AAR's Shrimp Ruling Confirms GST applies, Even for Foreign Buyers In Re: M/sSprint Exports Pvt Ltd CITATION : 2025 TAXSCAN (AAR) 168
The Authority for Advance Ruling (AAR), Andhra Pradesh Bench ruled that the export of pre-packaged and labelled commodities, even to foreign buyers, is subject to the levy of Goods and Services Tax (GST). The ruling confirms that the taxability of such goods is determined by the nature of the packaging and not by their final destination.
The bench, comprising K. Ravi Sankar, Commissioner of State Tax, and B. Lakshmi Narayana, Joint Commissioner of Central Tax, delivered a unanimous ruling. They answered both questions posed by the applicant in the affirmative, confirming that the export of processed frozen shrimp in printed inner packages within printed master cartons of up to 25 kg is indeed subject to GST.
Electrical Works for Factory Expansion Ineligible for ITC: AAR Rules Installations Form Part of Immovable Property In Re: M/s.Shibaura Machine India Private Limited CITATION : 2025 TAXSCAN (AAR) 169
The Bench of the Authority for Advance Ruling (AAR), Chennai, Tamil Nadu, held that Input Tax Credit (ITC) on electrical installation works undertaken for the expansion of a factory is not eligible under Sections 17(5)(c) and 17(5)(d) of the Central Goods and Services Tax Act, 2017, and the Tamil Nadu Goods and Services Tax Act, 2017, as the installations form part of immovable property and constitute a composite works contract service.
The Bench comprising C. Thiyagarajan, CGST Member, and B. Suseel Kumar, SGST Member observed that it involved both supply and installation and thus qualified as a composite works contract service under Section 2(119) of the CGST Act, 2017.
The AAR noted that electrical works such as LT panels, bus ducts, and lighting systems were permanently affixed to walls and ceilings that form part of the factory building, thereby becoming part of immovable property.
Reverse Charge Mechanism Not Applicable on Purchases from Unregistered Intra-State Suppliers: AAR In Re: M/s.Amman Blue Metals CITATION : 2025 TAXSCAN (AAR) 170
The bench of the Authority for Advance Ruling (AAR), Chennai, Tamil Nadu has ruled that the purchases of M-sand, P-sand, Blue Metals, Boulders, and Hollow Bricks from unregistered suppliers within the state is not liable to tax under the Reverse Charge Mechanism (RCM) as per Section 9(3) or 9(4) of the Central Goods and Services Tax Act, 2017.
The bench of C. Thiyagarajan, CGST Member and B. Suseel Kumar, SGST Member held that the listed goods do not include M-sand, P-sand, Blue Metals, Boulders, or Hollow Bricks, and hence fall outside the purview of RCM under that Section 9(3) according to Notification No. 04/2017.
The tribunal observed that the RCM obligation under this provision applies only to registered “promoters” in the construction sector Section 9(4) of the Act as per Notification No. 07/2019.
As the appellant is not engaged in any other activity, therefore it cannot be categorized as a promoter and therefore falls outside the scope of the said notification.
‘Mahara Jyothi’ Rice Bran Oil Marketed as Lamp Oil Classified Under Edible Oil Tariff Heading with 5% GST: AAR In Re: M/s.K.T.V. Health Food Pvt. Ltd. CITATION : 2025 TAXSCAN (AAR) 171
The Tamil Nadu Bench of Authority of Advance Ruling (AAR ) ruled that rice bran oil marketed as lamp oil under the brand name ‘Mahara Jyothi’ was classifiable under Tariff Heading 1515 90 40 as edible-grade fixed vegetable oil and taxable at 5% Goods and Service Tax ( GST ).
The applicant had paid the prescribed application fee under Rule 104 of the Central Goods and Service Tax (CGST) and Tamil Nadu Goods and Service Tax ( TNGST ) Rules, 2017, and sought an advance ruling to determine the correct classification of lamp oil.
The AAR Authority consisting of B.Suseel Kumar (SGST Member) and C.Thiyagarajan (CGST Member) examined the submissions, documents, and statements made during the personal hearing. It was noted that the applicant was engaged in manufacturing and supplying vegetable
The applicant stated that the product was refined rice bran oil of edible grade, without any change in its essential nature. The Authority referred to Notification No. 1/2017-Central Tax (Rate) dated 28.06.2017 and the Customs Tariff Act, 1975, under which rice bran oil was listed under Tariff Heading 1515 90 40 as a fixed vegetable oil of edible grade.
Fly Ash Bricks Attract 12% GST with ITC or 6% without ITC, Not Eligible for Composition Scheme: AAR In Re: MIs. SRSIndustries CITATION : 2025 TAXSCAN (AAR) 172
The Tamil Nadu Authority for Advance Ruling (AAR) has ruled that Fly Ash Bricks attract a 12% GST rate with Input Tax Credit (ITC) or a 6% rate without ITC, and that manufacturers are not eligible for the Composition Scheme.
The applicant sought a ruling on eight questions, including the correct HSN code, applicable GST rate, eligibility for exemption, and availability of Input Tax Credit (ITC) for Fly Ash Bricks containing more than 51% fly ash. The applicant submitted that based on a Gujarat High Court order, the rate of GST on Fly Ash Bricks should be 5%.
The Authority, comprising Shri C. Thiyagarajan, Member (CGST) and Shri B. Suseel Kumar, Member (SGST), addressed the application on its merits. It ruled that the correct HSN code for Fly Ash Bricks is 6815 99 10. Regarding the tax rate, the AAR clarified that from 18.07.2022, Fly Ash Bricks attract an overall GST rate of 12% (CGST 6% + SGST 6%), irrespective of the fly ash content, as per Notification No. 6/2022-Central Tax (Rate).
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