The Appellate Authority for Advance Ruling ( AAAR ), Chhattisgarh recently affirmed that rejected paddy used for animal feed, cattle feed, poultry feed, manure and industrial use are to be classified under Harmonized System of Nomenclature ( HSN ) Code 1006 10 90.

The two-member Bench of Chandra Prakash Goyal and Rajat Bansal disagreed with the ruling of the AAR in classifying rejected paddy under HSN 1006 10 (Rice in the husk) as rejected paddy is completely unfit for human consumption and would warrant a separate classification. The Bench further clarified that rejected paddy shall be rightly placed under HSN 1006 10 90 but refrained from commenting on its taxability owing to lack of further details regarding the proposed industrial usage of the rejected paddy seed.

The Rajasthan Appellate Authority for Advance Ruling ( AAAR ) has clarified that the Margin Scheme as envisioned under Rule 35(5) of the Central Goods and Services Tax ( CGST ) Rules, 2017 shall be applicable on the sale of used lead acid batteries, plastic waste and scrap from aluminium, steel, copper and brass utensils.

The two-member Bench of Mahendra Ranga, Member (Central Tax) and Ravi Kumar Surpur, Member (State Tax) observed that the Appellant’s claim of second-hand goods owing to purchase from unregistered suppliers and subsequent sale without any process is not tenable. Citing an example of a used car, the Bench held that ‘a second hand car shall be used in the same way as a new car. Thus mere change of ownership is not sufficient to term them as second hand goods under the purview of Rule 32(5) of the CGST Rules, 2017’.

The Chhattisgarh Appellate Authority for Advance Ruling ( AAAR ) in a blow to the Chhattisgarh State Power General Co. Ltd. ( CSPGCL ) ruled that no Goods andServices Tax ( GST ) exemption may be provided on ‘Abhivahan Permission Shulk’ paid by them to the Forest Department for the issuance of transit pass of mined coal.

The two-member Bench of Chandra Prakash Goyal and Rajat Bansal observed that the permit charges collected by the forest department is used by them to oversee the mining activity and not related to any of the tenets of urban forestry and protection of the environment under Articles 243G and 243W of the Constitution of India. Matters being so, the same were deemed not eligible for NIL rate of GST, as provided under Sl. No. 4 and 5 of Notification No.12/2017-Central Tax (Rate).

The Appellate Authority for Advance Ruling ( AAAR ), Goa recently dispelled the claim of Input Tax Credit ( ITC ) on motor vehicles maintained exclusively for demonstration purposes by vehicle dealerships.

The two-member Bench of Sarpreet Singh Gill, Commissioner of State Tax and Mayank Kumar, Chief Commissioner Central Tax and Customs observed that demo motor vehicles are supplied at a discounted rate and are categorized separately by the Original Equipment Manufacturer (OEM). Furthermore, referring to the decision of the Haryana Appellate Authority for Advance Ruling in the case of M/s Platinum Moto Corp LLP, wherein it was held that “in the very first demonstration run, demo car loses the character of the new motor vehicle and demo vehicles is sold akin to second hand goods and which is different from new vehicle and accordingly treated differently under GST law, so the demo car is not an input”.

The Karnataka Appellate Authority for Advance Ruling ( AAAR ) recently affirmed the applicability of Goods and Services Tax ( GST ) on additional surcharges paid by Open Access ( OA ) Consumers towards majorly government owned electricity suppliers.

The two-member Bench of Pramod Kumar Agrawal and Shikha C observed that the additional surcharge levied under the Electricity Act from customers sourcing electricity from OA Consumers, over and above the consideration for supply and distribution of electricity is indeed taxable in terms of Section 15 of the Central Goods and Services Tax Act, 2017 ( CGST Act ), thereby subject to GST.

As per the ruling by the Gujarat Appellate Authority of Advance Ruling (AAAR), Suzlon’s specially built transformers for wind-operated electricity generators that are intended to serve as both step-down and step-up devices are subject to 18% Goods and Service Tax (GST).

The Authority of Advance Ruling (AAR) ruled that the specially designed transformers for WOG, which execute the dual function of step down and step up, supplied by the appellant-assessee are not a part of Wind Operated Electricity Generators (WOEG) and, as a result, would not be eligible for the benefit of Sr. No. 234 and Sr. No. 201A of exemption notification No. 1/2017-CT (Rate), as amended. The bench of Rajeev Topno and B V Siva Naga Kumari rejected the appeal filed by the appellant Suzlon Energy and upheld the AAR’s ruling.

The Gujarat Appellate Authority of Advance Ruling ( AAAR ) recently decided that services purchased by the port for the operation and maintenance of diving support vehicles (DSV) are not eligible for the Input Tax Credit (ITC) under the Goods and Service Tax ( GST ).

The department’s application against the Authority of Advance Ruling (AAR) ruling, which held that M/s Sikka is entitled to receive ITC on the services purchased for the operation and maintenance of DSVs: Relsagar & Reldarshan, has been granted by the two-member bench of Rajeev Topno and B V Siva Naga Kumari. For services acquired for the operation and upkeep of SPVs Eagle, Chetak, Calypso Fortune, and ML Noorani, M/s Sikka is eligible to receive ITC. Regarding the renting of a vessel [SPV], the AAAR determined that the ITC is barred under section 17(5) when the respondent’s contractor has discharged GST under SAC codes 996602 and 996609.

The Gujarat Bench of the Goods and Services Tax ( GST ) Appellate Authority for Advance Ruling ( AAAR ) has upheld a ruling classifying herbal cigarettes under HSN 24029010, levying 28% GST along with compensation cess.

The authority bench of Central GST Member B V Siva Naga Kumari and State GST Member Rajeev Topno noted that, the herbal cigarettes are non-medicinal and are subject to the maximum GST rate of 28%, coupled with compensation cess. It was observed that, “What this re-confirms is what was stated during the course of personal hearing – that the appellant does not hold any license for manufacture of Ayurvedic medicine from any Regulatory Body, permitting them to manufacture the said goods, which as per their claim is a medicine.

No GST liability on Emcure for Free Employee Bus Transportation: AAAR

M/s. Emcure submitted that the canteen and bus transportation facilities are integral to its employment terms and provided in accordance with its Human Resources (HR) policy. The company recovers a subsidized portion of the cost for these services as part of its factory operations, in line with the HR policy.

In a recent case, the Odisha State Appellate Authority for Advance Ruling ( AAAR ) for Goods and Service Tax. upheld that the leasing of E-Bikes without an operator is classifiable under the heading 9971, i.e. financial and related services under entre SL No.15 (ii) of Notification No 20/2019- CT(R) dated, 30th September 2019 and at a GST of 18%.

The two-member bench consisting of Yamini Sarangi ( Member (State Tax) ) and M Sreedhar Reddy ( Member(Central Tax) ) further asserted that the leasing of electric vehicles (E-Bikes) without operator is classifiable under the heading 9971, that is, financial and services under entre SL No. 15 (ii) of Notification No. 20/2019 dated. 30th September 2019, and the tax rate will be the same as applicable on the supply of goods involving the transfer of title in goods.

No GST ITC on Provision of Third-Party Canteen Services to Contractual Workers: AAAR

In Re: M/S. TroikaaPharmaceuticals Ltd CITATION : 2025 TAXSCAN (AAAR) 111

In a notable ruling, the Gujarat Appellate Authority for Advance Ruling ( AAAR ) has ruled that no Input Tax Credit ( ITC ) may be availed by an employer on the Goods and Services Tax ( GST ) paid for canteen services provided to contractual workers.

The decision was rendered by the Gujarat AAAR while adjudicating an appeal filed by M/s. Troikaa Pharmaceuticals Ltd. (Troikaa Pharmaceuticals) against a ruling passed by the Gujarat Authority for Advance Ruling (AAR), which denied ITC to the Applicant on the ground that providing food to contractual workers was not a statutory requirement under any law.

The AAAR Bench, comprising Rajeev Topno SGST Member and B.V. Siva Naga Kumari, CGST Member, upheld the GAAR ruling stating that since contractual workers are not statutory employees, ITC on their canteen costs is blocked under Section 17(5)(b) of the CGST Act, 2017.

In a recent ruling, the Tamil Nadu Appellate Authority for Advance Ruling (AAAR) dismissed the appeal filed by Mitsubishi Electric India Private Limited on grounds of delay, reinforcing the strict statutory time limitations prescribed under the Central Goods and Services Tax (CGST) Act, 2017. The AAAR held that the appeal, filed after a delay of 88 days, was beyond the permissible time period and therefore could not be entertained. The Authority stated that it lacked the power to condone delays exceeding the statutory limit, regardless of the reasons provided by the appellant.

The order was passed by a two-member bench comprising Dr. D. Anand, Commissioner of Commercial Taxes, and Dr. Ram Niwas, Principal Chief Commissioner of GST & Central Excise, Tamil Nadu and Puducherry Zone, who jointly held that the delay was not condonable and accordingly dismissed the appeal.

The Tamil Nadu State Appellate Authority for Advance Ruling ( AAAR ) has upheld the decision of the Authority for Advance Ruling ( AAR ), rejecting an application filed by the Tamil Nadu Nurses and Midwives Council seeking clarity on the applicability of GST on various fees collected by them.

However, the AAAR, comprising Dr. Ram Niwas, IRS, and Dr. D. Jagannathan, IAS, disagreed with the council’s interpretation. The bench emphasized that the term “proceedings” under GST law has a broader scope and includes investigations, inquiries, and other pre-adjudication processes. Referring to Section 66 of the CGST Act, the AAAR noted that the phrase “any other proceedings” is used alongside terms like scrutiny, inquiry, and investigation, indicating that these activities are also considered proceedings under the law.

The Tamil Nadu Appellate Authority for Advance Ruling (AAAR) has upheld the Authority for Advance Ruling’s (AAR) decision that summons issued by the Directorate General of GST Intelligence (DGGI) constitute ‘proceedings’ under GST law, thereby barring the Tamil Nadu Medical Council (TNMC) from seeking an advance ruling on the taxability of its fees. The AAAR’s order reinforces that any ongoing investigation under GST provisions precludes applicants from obtaining advance rulings on the same matter.

The bench comprising Dr. D. Jagannathan, IAS, Commissioner of Commercial Taxes, and Dr. Ram Niwas, IRS, Principal Chief Commissioner of GST & Central Excise, concluded that allowing advance rulings during active investigations would undermine GST’s procedural integrity. The order reaffirms that taxpayers cannot seek rulings to preempt or parallel ongoing inquiries by tax authorities. This decision sets a precedent for similar cases, clarifying that the term ‘proceedings’ u/s 98(2) includes all investigative actions, not just formal adjudications.

The Tamil Nadu Appellate Authority for Advance Ruling (AAAR) has granted partial relief to Panasonic Life Solutions India Pvt. Ltd. in a significant GST case concerning supplies from Free Trade and Warehousing Zones (FTWZ). The authority upheld the tax-exempt status of such transactions under GST law while providing crucial relief by exempting the company from input tax credit (ITC) reversal requirements, except in cases involving duty-free shops.

The bench comprising Dr. D. Jagannathan, IAS, Commissioner of Commercial Taxes, and Ashish Varma, IRS, Principal Chief Commissioner of GST & Central Excise, emphasized the need to interpret GST provisions in harmony with customs and SEZ regulations

The Maharashtra Appellate Authority for Advance Ruling (AAAR) ruled that no Goods and Services Tax (GST) is payable on membership subscription and admission fees collected by Rotary Club of Mumbai Queens Necklace, as such collections are not considered a “supply of services” under the CGST Act, 2017.

The bench comprising Sungita Sharma and Shri Rajiv Jalota observed that the amounts collected were entirely used for internal administrative purposes, without conferring any individual benefits or services upon members. They observed that the club’s objectives, such as promoting peace, education, and sanitation, were social in nature and not in furtherance of business.

In Re: Tvl.BatchaNoorjahan (M/s. School Transport) CITATION : 2025 TAXSCAN (AAAR) 117

The AAAR Tamil Nadu State Appellate Authority for Advance Ruling (AAAR) ruled that no Goods and Services Tax (GST) exemption is available for school transportation services where payments are made directly by parents.

Referring to the exemption under Sl. No. 66 of Notification No. 12/2017-CTR, the AAAR emphasized that the benefit is available only when services are provided to an educational institution. In this case, the service was not provided to the schools but directly to students or parents, who bore the cost and engaged the appellant independently.

The AAAR clarified that merely entering into agreements with schools does not alter the taxability when the schools are not paying for the service. The schools paid no consideration and the schools were not recipients of the service, so the conditions for GST exemption were not met.

In Re: M/s HighEnergyBatteries (India) Limited CITATION : 2025 TAXSCAN (AAAR) 118

The Tamil Nadu Appellate Authority for Advance Ruling (AAAR) recently upheld the decision of the Authority for Advance Ruling that Goods and Services Tax (GST) is applicable on the value of silver that is extracted from old or used batteries received free of cost from Indian Naval formations. The silver extracted from the old batteries are then repurposed to manufacture new batteries by the applicant.

Since the supply of used batteries by the recipient contributes directly to the value of the finished goods, the same was liable to be included in the taxable value under Section 15(2)(b) of the CGST Act. The AAAR clarified that merely entering into a contract excluding the value of free-supplied goods cannot override the operation of Section 15(2)(b).

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 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.

The Gujarat Appellate Authority for Advance Ruling (AAAR) ruled that Input Tax Credit (ITC) under Goods and Services Tax Act, 2017 is admissible on capital goods such as cables and electrical equipment installed outside factory premises when used for power transmission to the manufacturer’s factory.

The ITC was not blocked under Section 17(5)(c) or (d). They also cited CBIC Circular No. 219/13/2024-GST, which clarified that ducts and manholes used in optical fiber networks are part of “plant and machinery” and eligible for ITC.

The bench comprising Rajeev Topno (Member SGST) and Sunil Kumar Mall (Member CGST) observed that Elixir Industries had fulfilled all conditions for availing ITC and that the GAAR had correctly applied Section 16 of the CGST Act. The AAAR pointed out that the equipment used for transmission of electricity formed an essential part of the manufacturing setup and was not excluded from the definition of “plant and machinery.”

The Tamil Nadu State Appellate Authority for Advance Ruling (AAAR) has upheld the denial of Input Tax Credit (ITC) on IGST paid through TR-6 Challans and confirmed that time limits under Section 16(4) apply to reassessed bills of entry in the case of M/S. Becton Dickinson India Private Limited.

The AAAR clarified that a TR-6 challan is not a document prescribed under the Customs Act, 1962, and is not "similar" to a bill of entry, which is specifically prescribed. The Authority noted that CBIC Circular No. 16/2023 provides a specific procedure for such situations, which involves cancelling the 'Out of Charge' and reassessing the bill of entry, a route the appellant should have pursued.

The Authority reasoned that through Section 20 of the IGST Act, the provisions of the CGST Act apply 'mutatis mutandis' to IGST, thereby extending the time limit provisions to bills of entry used for IGST imports. The time limit for availing ITC on the differential IGST paid was confirmed to begin from the date of re-assessment of the bill of entry.

The Gujarat Appellate Authority for Advance Ruling (GAAAR) upheld that expenses such as professional fees and legal charges relating to the buyback are not eligible for ITC, and further mandated the reversal of common input credit.

The Gujarat Authority for Advance Ruling (GAAR) initially ruled that the applicant company GNFC was not eligible to avail ITC on the expenditure and was required to reverse the ITC on common inputs and input services used in relation to the buyback. Aggrieved by the GAAR ruling, the applicant filed an appeal before the GAAAR. The GAAAR bench comprising Rajeev Topno (SGST) and Sunil Kumar Mall (CGST) upheld the original AAR ruling, dismissing all arguments made by the appellant.

The GAAAR confirmed that no ITC is admissible on share buyback expenses as they relate to transactions in securities, which are treated as 'exempt supply' for the purpose of ITC reversal under GST law. The authority rejected the appeal.