GST AAR CASES
2018-TIOL-188-AAR-GST
Ernakulam Medical Centre Pvt Ltd
GST - Supply of medicines and allied items provided by the hospital through the pharmacy to the in-patients is part of composite supply of health care treatment and hence not separately taxable - clarification given in letter F.No. 354/17/2018-TRU dated 12.02.2018 in the matter of supply of food to in-patient is applicable in the case of dispensing of medicines also - However, Supply of medicines and allied items by hospital through the pharmacy to the out-patients is taxable: AAR
- Application disposed of: AAR
2018-TIOL-187-AAR-GST
Elambrancheri Khaldoon
GST - Applicant is one of the co-owners of a jointly owned immovable property and there are 13 co-owners holding equal share in 86.78 cents of land and building - property rented out to different parties and the total rent from all these properties exceeds twenty lakh rupees in a financial year but individual share does not exceed the said threshold - Owners are planning to engage one of the co-owners to collect rent and distribute amongst them for the purpose of administrative convenience through execution of power of attorney - in these circumstances, advance ruling is sought as to whether small business exemption u/s 22 of the GST Act is available to all owners separately in case of jointly owned property and whether engaging a co-owner to collect and distribute rent among all the owners will have any implication on the business exemption u/s 22 for individual co-owners.
Held: Small business exemption provided u/s 22 of the GST Act is eligible to the co-owners separately in the case of jointly owned property, where the rent is collected together, but divided equally and transferred to the respective co-owners; engaging a co-owner to collect and distribute rent for administrative convenience has no implication on the business exemption: AAR
- Application disposed of: AAR
2018-TIOL-186-AAR-GST
Abbott Healthcare Pvt Ltd
GST - Applicant has adopted the business model of placing their own medical instruments at the premises of hospitals or laboratories and supplied the pharmaceutical products, reagents, diagnostic kits etc. to be used in such equipments by executing an agreement containing minimum purchase obligation - Applicant seeks a ruling as to whether such placement of medical instruments to unrelated customers like hospitals, labs etc. for their use without any consideration, for a specific period, constitute supply and whether such movement of goods constitutes, otherwise than way of supply, under GST.
Held: Such supply constitutes "composite supply", the principal supply is the transfer of right to use of any goods for any purpose and is liable to GST under Sl. No. 17(iii), Heading 9973 [Transfer of the right to use any goods for any purpose (whether or not for a specified period) for cash, deferred payment or other consideration] of Notification 11/2017-CTR: AAR
- Application disposed of: AAR
2018-TIOL-185-AAR-GST
AM Motors
GST - Applicant is a dealer of motor vehicles - Applicant's business requirement mandates that they shall compulsorily acquire the demonstration vehicles from principal supplier and which purchases are capitalised in books of accounts excluding tax components - such demo cars, after a specific period of time are sold off for the book value by paying applicable taxes at that point of time - Ruling sought on whether they can avail ITC on such motor cars.
Held: Capital goods which are used in the course of furtherance of business are entitled for ITC - Therefore, Input Tax paid by a vehicle dealer on the purchase of motor car used for demonstration purpose of the customer can be availed as Input Tax Credit on capital goods and set off against output tax payable under GST: AAR
- Application disposed of: AAR
2018-TIOL-184-AAR-GST
Purewal Stone Crusher
GST - Abhivahan Shulk, Khanij Sampada Shulk are different from Toll tax and is covered under Service Code 9997 as 'Other services' - GST payable @18% under reverse charge in terms of sr. no. 5 of notification 13/2017-CTR: AAR
No GST is leviable on Marg Sudharan Shulk charged and collected by applicant as the same is nothing but Toll charges collected from users for using forest road: AAR
GST - Fee for Ambient Air monitoring is to be paid to Uttarakhand Environment Protection Control Board (UEPPCB) to safeguard the environment as well as general public from the negative impact of working of stone crushers and other pollution generating plant - "Protection of environment and promotion of ecological aspects" is one of the functions entrusted to the municipality under article 243W of the Constitution - no liability of GST arises on the fee so collected by UEPPCB as the same is exempted service in terms of sr. no. 4 of notification 12/2017-CTR: AAR
GST - For functioning of any motor vehicle or any kind of earth moving machinery on road, there is a mandatory registration fee required to be paid as per RTO of the State - RTO is a State government department and covered under definition of section 2(53) of the CGST Act - Services of Registration by State Transport office is an exempted service in terms of sr. no. 47 of notfn. 12/2017-CTR: AAR
GST - Penalty paid by applicant on unaccounted stock of River bed material on the orders of District Magistrate to the government account is a supply of service in view of 5(e) of Schedule II of the CGST Act, 2017 - liable for GST @18% under reverse charge in terms of sr. no. 5 of notification 13/2017-CTR: AAR
GST - GST paid by applicant at the time of purchase or repairs including spares w.r.t Vehicles (Pokland, JCB, Dumper & Tipper) used by it for movment of goods - Input Tax Credit is admissible - Q.21 of Sectoral FAQ - Series - Mining refers: AAR
- Application disposed of: AAR
HIGH COURT CASES
2018-TIOL-138-HC-ORISSA-GST + Case Story
Shree Subham Garments Vs UoI
GST - Cancellation of provisional GST registrations - It is essential for the officers to understand that any impediment caused to registered dealers in carrying on their business will also have a direct impact on the collection of revenue for the State - Officers cannot throw their hands in desperation and blame the compupter for the failure of uploading which lead to cancellation of registration - In the event any dealer faces any problem in uploading data, alternate mechanism for filing manual returns or assistance in uploading necessary information at their respective offices should be provided - Commissioner to attend the problems faced by petitioners within a period of six weeks - Application disposed of: High Court
- Application disposed of : ORISSA HIGH COURT
2018-TIOL-137-HC-AP-GST + Case Story
AS Steel Traders Vs UoI
GST - Very fact that GOI issued notification 48/2018-CTR amending Rule 117 of CGST Rules, 2017 is a recognition of the fact that certain dealers were unable to electronically submit their declarations in FORM GST TRAN-1 on 27.12.2017 - Impugned order of Joint Commissioner dated 27.06.2018 does not deal with the petitioners' claim of inability to file their return in FORM GST TRAN-1 on 27.12.2017 because of server error, and, instead, relies on general statistics to justify rejection of the petitioners' claim to have made attempts to file FORM GST TRAN-1 on 27.12.2017 - It is open to the petitioners, in terms of the notification dated 10.09.2018 and the subsequent order dated 17.09.2018, to seek recommendation of the GST Council for submission of FORM GST TRAN- 1 within the time frame stipulated in the order dated 17.09.2018, and to satisfy the authorities concerned that their attempts to file FORM GST TRAN-1 on 27.12.2017 failed because of a systems error or server related issues - Petitions disposed of: High Court
- Petitions disposed of : ANDHRA PRADESH HIGH COURT
ARTICLES
Retrospective denial of Credit of Cesses, whether constitutionally valid?
Place of supply - Someone should own up
