AAR and AAAR Weekly Round Up

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 December 20, 2025 to February 20, 2025.

Repair Services Via Field Engineers in State Don’t Create ‘Place of Business’ When Contracts & Invoicing from HO: AAAR

In Re: M/s. Thermo Fisher Scientific India PrivateLimited

CITATION : 2026 TAXSCAN (AAAR) 102

In a recent ruling, the Odisha State Appellate Authority for Advance Ruling (AAAR) held that repair and maintenance services provided through Field Service Engineers (FSEs) in Odisha do not create a “place of business” in the State when the AMC/CMC contracts, invoicing, and receipt of consideration are handled by the Head Office (HO) in Maharashtra.

After examining the statutory definition of “place of business” under Section 2(85) and the factual record, the two-member bench comprising Ms. Yamini Sarangi (Member, State Tax) and Shri P.R. Lakra (Member, Central Tax) observed that the supply of services was being made from the HO in Maharashtra. The tribunal observed that all agreements were executed by the HO, all invoices were issued from the HO, and the payments were also received by the HO.

No Separate GST Registration Needed for After-Sales Service in Customer State When supply is from HO: AAAR

In Re: M/s. Thermo Fisher Scientific India Private Limited

CITATION : 2026 TAXSCAN (AAAR) 102

In a recent ruling, the Odisha State Appellate Authority for Advance Ruling (AAAR) held that no separate GST registration is required in the customer State merely because after-sales repair and maintenance services are carried out there, when the supply is made from the Head Office (HO) and the contracts, invoicing and receipt of consideration are handled from that HO.

After examining the relevant provisions, including the definitions of “place of business” and “fixed establishment”, the two-member bench comprising Yamini Sarangi (State Tax Member) and Shri P.R. Lakra (Central Tax Member) observed that the appellant did not have a permanent set-up in Odisha from where the supply of services was made. The AAAR observed that the supply was being made from the HO in Maharashtra since the contractual and billing activities were carried out from there.

Temporary Holding of Spare Parts by Service Engineers Not ‘Place Of Business’ or ‘Fixed Establishment’: AAAR

In Re: M/s. Thermo Fisher Scientific India PrivateLimited

CITATION : 2026 TAXSCAN (AAAR) 102

In a recent ruling, the Odisha State Appellate Authority for Advance Ruling (AAAR) held that temporary holding of spare parts and tool kits by Field Service Engineers (FSEs) in Odisha does not amount to a “place of business” or a “fixed establishment” under the GST law.

After examining the statutory definitions of “place of business” under Section 2(85) and “fixed establishment” under Section 2(50), the two-member bench comprising Ms. Yamini Sarangi (Member, State Tax) and Shri P.R. Lakra (Member, Central Tax) observed that the temporary retention of spare parts by service engineers could not be treated as maintaining a place from where business was carried on. The AAAR observed that the appellant had no separate infrastructure or permanent set-up in Odisha for storage of goods.

No GST on Charitable Institution Planting & Maintaining Trees for Contractual Payment of ₹113 Crore: AAR

In Re: SADBHAVNA SEVA FOUNDATION

CITATION : 2026 TAXSCAN (AAR) 101

The Gujarat Authority for Advance Ruling (AAR) recently clarified that a charitable institution engaged in the activity of planting and maintaining trees continues to be exempt from paying Goods and Services Tax (GST) even when the work is performed by virtue of government contracts, here valued at almost ₹113 crore, payable over the course of three years.

The Bench of Sushma Vora - SGST Member and Vishal Malani - CGST Member observed that the applicant’s primary object was environmental preservation, and the activities undertaken by them including plantation and maintenance of trees was directly linked to their charitable purposes.

The Authority further noted that receiving consideration from government authorities for executing such projects did not alter the charitable character of the service. Accordingly, the Authority ruled that the services provided by the applicant were exempt from GST under Entry No. 1 of Notification No. 12/2017-CGST (Rate).

GST Applicable on Wages Paid to Outsourced Staff Treated as ‘On Duty’ During COVID-19 Lockdown: AAR

In Re: M/s. The Kerala State Ex-service League

CITATION : 2026 TAXSCAN (AAR) 102

In a recent order, the Kerala Authority for Advance Ruling (AAR) has said that GST must be paid on wages and interim payments given to outsourced staff who were treated as “on duty” during the COVID-19 lockdown.

The Bench consisted of Shri A. K. Abdul Rahiman (State Tax Officer) and Shri R. Sreelal (Additional Commissioner of Central Tax) observed that KSESL is registered under GST and is providing manpower supply services, which are taxable. It explained that since the workers were officially treated as “on duty”, the contract between KSESL and VSSC was still continuing during the lockdown period. The payments were connected to the contract and cannot be treated as free assistance.

The Authority also pointed out that under GST law, tax is payable on the full amount received for manpower services, including wages, even if the organisation keeps nothing for itself. It explained that just because work was not physically done, GST liability does not stop when the contract is valid.

GST Chargeable on Application Fee for Conducting Kerala Dewasom Recruitment Board Examinations: AAR

In Re: Kerala Devaswom Recruitment Board

CITATION : 2026 TAXSCAN (AAR) 103

The Kerala Authority for Advance Ruling (KAAR) has ruled that Goods and Services Tax (GST) has to be levied on the application fee collected from the candidates for conducting examinations that recruit candidates to various posts in Dewasom boards across the state.

It was also observed that the application fee was in direct correlation to the service provided by the applicant. It was observed that it is not a statutory levy but a consideration charged in exchange for permitting the candidate to participate in the selection process. It was observed that the relationship between payment and the service rendered is a reciprocal obligation

Here, the board conducts the examination, arranges evaluation, declares the result and provides a list of eligible candidates, and in return, the candidates pay the prescribed fee. So such a reciprocal relationship is included within the supply of service for consideration as in sections 7(1)(a), 2(17) and 2(31) of the act.

Services Provided in Connection with Recruitment to Dewasom Board Constitute Taxable Supply u/s 2(108) of CGST Act: KAAR

In Re: Kerala Devaswom Recruitment Board

CITATION : 2026 TAXSCAN (AAR) 103

The Kerala Authority for Advance Ruling (KAAR) has ruled that services provided in connection with recruitment to Dewasom Board constitutes taxable supply under section 2(108) of the Central Goods and Service Tax (CGST) Act, 2017.

The two members of the authority, Jomy Jacob( Additional Commissioner of Central Tax)and Mansur MI (Joint Commissioner of State Tax), observed that the applicant constitutes a govt authority as defined in para 2(zf) of notification 12/2017 and is eligible for GST exemption. It was also observed that the applicant was established under the Kerala Dewasom Recruitment Board Act, 2015.

The AAR also found that the applicant is engaged as an independent recruitment service provider for selecting the candidates. It was also noted that the applicant is qualified to be a person as defined under section 2(84) of the CGST Act, 2017. Also, the applicant services, even though done with the aid of the government, the examination fee collected were utilised to meet expenses in conducting the exam and related recruitment activities.

GST Not applicable on Clinical Treatments for Psoriasis and other Dermatological Disorders: AAR

In Re: Hair Restoration India Private Limited

CITATION : 2026 TAXSCAN (AAR) 104

The Kerala Authority for Advance Ruling (AAR) has held that Goods and Services Tax(GST) is not applicable on the clinical treatments for dermatological disorders such as psoriasis, dandruff, dermatitis, anti‑fungal infections, and folliculitis, which qualify as “healthcare services”.

The applicant contended that it operates licensed clinics staffed with over 80 medical officers, dermatologists, and para‑medical staff. Treatments offered include management of psoriasis, dandruff, dermatitis, fungal infections, and folliculitis.

The two members of the authority, Jomy Jacob( Additional Commissioner of Central Tax)and Mansur MI (Joint Commissioner of State Tax) held that the applicant’s dermatological treatments qualify as healthcare services under Sl. No. 74 of Notification No. 12/2017‑Central Tax (Rate). Accordingly, GST is not applicable on services provided in connection with psoriasis, dandruff, dermatitis, anti‑fungal infections, folliculitis, and similar ailments.

Supply of E‑Rickshaw Classified as Finished Vehicle at 5% GST Only if Motor Plus Three Essential Components Present: AAR

In Re: NAVYA ELECTRIC VEHICLE PRIVATE LIMITED

CITATION : 2026 TAXSCAN (AAR) 105

In a recent ruling, the West Bengal Authority of Advance Ruling (AAR) has ruled that electric three‑wheeler vehicles (e‑rickshaws) supplied in Completely Knocked Down (CKD) form will qualify as finished vehicles attracting the concessional 5% Goods and Service Tax (GST) rate only when the kit includes the motor along with at least three other critical components, transmission, axles, chassis, and controller.

The bench, Shafeeq S and Jayadip Kumar Chakrabarti ( Member of West Bengal Authority for Advance Ruling) ruled that CKD kits, including the motor plus at least three of the other four components, are to be treated as finished vehicles, taxed at 5% GST. Kits missing the motor or two of those components are treated as parts, taxed at 18% GST.

Municipal Operation & Maintenance Services Allowed Only if Pure Services or Goods Value More than 25% of Total Contract Value: AAR

In Re :SHUBHABRATA CHOWDHURY

CITATION : 2026 TAXSCAN (AAR) 106

In a recent ruling, the West Bengal Authority for Advance Ruling (AAR) clarified that operation and maintenance services provided to municipal bodies can qualify for Goods and Services Tax (GST) exemption only when they constitute pure services or when the value of goods involved in the composite supply does not exceed 25% of the total contract value.

Applicant Shubhabrata Chowdhury sought clarity on the tax treatment of various municipal operation and maintenance contracts relating to solid waste management, sanitation, drainage and public health services under the Goods and Services Tax (GST) regime.

The bench of Shafeeq S and Jaydip Kumar Chakrabarti held that Pure manpower-based municipal services are GST-exempt, composite supplies are exempt only if the goods value is within 25%, and where the goods component exceeds 25%, the services are fully taxable at 9% CGST.

ITC on food and beverages is admissible only when they form part of composite event management package taxed at 18% GST: AAR

In Re:CITIUS HOLIDAYS PRIVATE LIMITED

CITATION : 2026 TAXSCAN (AAR) 107

In a recent ruling West Bengal Authority for Advance Ruling (AAR) has clarified that Input Tax Credit (ITC) on food and beverages is admissible only when such supplies form part of a composite event management package taxed at 18% GST, in line with Section 17(5)(b)(i) of the GST Act.

The bench, Shafeeq S and Jayadip Kumar Chakrabarti (members of the West Bengal Authority for Advance Ruling ) clarified that Input Tax Credit (ITC) on food and beverages is admissible only when they are part of a composite event management package taxed at 18% GST under Section 17(5)(b)(i) and nseparable conference packages qualify as composite supplies, and ITC remains available even if food costs are re‑billed with a margin.

GST Authority exempts security and cleaning services in government hospitals under Notification: AAR

In Re: EX SERVICEMEN RESETTLEMENT SOCIETY

CITATION : 2026 TAXSCAN (AAR) 108

In a recent ruling, the West Bengal Authority for Advance Ruling (AAR) has held that the supply of security personnel and scavenging staff to state‑run medical colleges and hospitals qualifies as a condition under Notification No. 12/2017 – Central Tax (Rate).

The authority observed that the society involved only manpower supply without any goods, thus qualifying as pure services. Since the services were rendered to government hospitals, the second condition was also satisfied.

The bench of Shafeeq S and Jayadip Kumar Chakrabarti ( Member of West Bengal Authority for Advance Ruling) concluded that all three statutory conditions under Entry NO.3 notification No. 12/2017 -Central Tax Rate were satisfied in the applicant’s case.

Support our journalism by subscribing to Taxscan premium. Follow us on Telegram for quick updates