TOP NEWS
Availment of ITC for last FY - Oct 20 remains last date, clarifies Govt
GST AAR CASES
2018-TIOL-224-AAR-GST
Frizo India Pvt Ltd
GST - Nature of Work is Erection, Procurement and Commissioning of Solar Generating System which falls under the ambit of 'Works Contract Services' (SAC 9954) of Notification 11/2017-CTR and attracts 18% rate of tax under IGST or 9% each under the CGST & SGST Acts: AAR
- Application disposed of: AAR
2018-TIOL-223-AAR-GST
Solairedirect India Llp
GST - Scope of work in respect of “Turnkey Composite EPC Contract” includes designing, planning civil works, procurement of goods, erection, testing and commissioning - Turnkey EPC Contract is not covered under Entry 234 of Schedule I of Notification 1/2017-ITR or 1/2017-CTR or 1/2017-STR - Contract for Erection, Procurement and Commissioning of Solar Power Plant falls under the ambit of “Works Contract Services” (SAC 9954) of Notification 11/2017-CTR and attracts 18% rate of tax under IGST or 9% each under the CGST & SGST Acts: AAR
- Application disposed of: AAR
2018-TIOL-222-AAR-GST
Shubhlaxmi Cold Storage And Ice Factory Pvt Ltd
GST - Applicant has a Cold storage facility and is registered and is paying tax on storage charges of processed agriculture produce and other products - They seek a ruling as to whether storage of fresh eggs, which is a produce of rearing of animals/poultry farming is chargeable to GST or exempted.
Held: Charges received by the applicant for providing service of storing of ‘fresh eggs' in shell on which no further processing is done, which are product of rearing of animals/poultry farming, are exempted from payment of GST in terms of Sl. No. 24 of Notification 11/2017-CTR and Sl. No. 54 of Notification 12/2017-CTR: AAR
- Application disposed of: AAR
2018-TIOL-221-AAR-GST
Raghav Productivity Enhancers Ltd
GST - Applicant is engaged in the manufacture of Ramming Mass which is used in the lining of induction furnaces - Ruling sought on the Classification and Applicable rate of GST on Ramming Mass as well as Quartz powder obtained by crushing Quartz stones.
Held: Ramming mass is a refractory material and is classifiable under HSN Code 3816 attracting @18% GST - Quartz powder falls under HSN Code 2806 and attracts 5% GST: AAR
- Application disposed of: AAR
2018-TIOL-220-AAR-GST
Nagaur Mukangarh Highways Pvt Ltd
GST - Applicant is a company incorporated as a Special Purpose Vehicle (SPV) and registered under the provisions of the Companies Act, 2013 for the purpose of undertaking two-laning/intermediate laning of the sections of the State Highway on Design, Build, Operate/maintain and Transfer basis (DBOT) under a contract with PWD - Applicant is engaged as a Concessionaire wherein the PWD, Government of Rajasthan has granted concession to construct, operate and maintain the project during the Construction period which shall commence from the appointed date and will end on Commercial Operation Date (COD) and operate and maintain it for a further period of ten years from the COD - Applicant is rendering taxable services during the construction of roads which is liable to tax, hence they are entitled to claim full ITC under the provisions of s.16(1) of the CGST Act, 2017 - Applicant is also entitled to claim ITC on supplies of goods and services or both procured for use in outward suppy of O&M (Operate and Maintain) service purpose as they are paying GST on 100 per cent of the amount received on account of O&M of the project: AAR
- Application disposed of: AAR
2018-TIOL-219-AAR-GST
Louis Dreyfus Company India Pvt Ltd
GST – Applicant seeks ruling to determine the applicability of GST on the differential payment received by a party to the contract from the other party to the contract in event of "Settlement", "Washout" or "Closure" of contract by it.
Held:
+ In forward contracts in Cotton sales, being settled by applicant with other party to the contract by way of payment of the differential of forward rate and prevailing market rate on the settlement date, the same would be falling within the purview of "securities" as defined in Section 2(101) of the CGST Act, 2017 and would, therefore, not be chargeable to GST: AAR
+ In forward contracts in Cotton sales, being settled by applicant with other party to the contract by way of payment of the differential of forward rate and rate fixed by the applicant using his discretion, such rate being different than the market price of cotton, on the date settlement, the same would not be falling within the purview of ‘securities' as defined in Section 2(101) of the CGST Act, 2017 and would, therefore, be chargeable to GST: AAR
+ In the forward contracts in cotton purchase being settled by applicant with the other party to the contract by way of payment of differential of forward rate and prevailing market rate on the settlement date, the same would be falling within the purview of ‘securities' as defined in section 2(101) of the CGST Act, 2017 and would, therefore, not be chargeable to GST: AAR
- Application disposed of:AAR
2018-TIOL-218-AAR-GST
Wabco India Ltd
GST - Applicant is engaged in the manufacture of brake systems and related parts for heavy vehicles - Applicant seeks a ruling as to whether the Electrical Wiring Harness which is primarily an electrical wire with connectors at both ends and manufactured by them falls under HSN 8544 and attracts 9% CGST in terms of notification 1/2017-CTR as amended by notification 41/2017-CTR w.e.f 15.11.2017 and whether the said rate is applicable w.e.f 01.07.2017.
Held: Electrical Wiring Harness is correctly classifiable under HSN 8544 3000 for which the rate prescribed is 14% CGST in terms of Sl. No. 161 of Schedule IV of Notification 1/2017-CTR for the period 01.07.2017 to 14.11.2017 and equivalent SGST - And that w.e.f 15.11.2017, the product attracts 9% CGST (and equivalent SGST) in terms of Sl. No 395 of Schedule III of the Notification 1/2017-CTR: AAR
2018-TIOL-217-AAR-GST
Venkatesh Automobiles
GST - Applicant is an Authorised Service Centre appointed by the Government of Goa, Directorate of Transport and is seeking a ruling as to whether the service provided of issuing Pollution Under Control (PUC) certificate for vehicles on behalf of State Government is exempted from GST.
Held: Services rendered by the applicant is not covered under Schedule III appended to the CGST Act, 2017 as well as the Goa GST Act, 2017 - Service is provided by the applicant to the customers on payment of service charges - Activity of issuance of PUC certificate is not covered under SAC 9991 and is covered under Residual Entry and hence should be taxed @18% GST: AAR
2018-TIOL-215-AAR-GST
Sodexo Food Solutions India Pvt Ltd
GST - Applicant is engaged in the business of providing catering services, facility management services and other services to customers across India in the manufacturing, service industry and remote locations including off-shore oil rigs, mining sites, factory sites - Applicant seeks a ruling as to whether entry 7(i) covers canteens located in any establishment and Circular no. 28/02/2018-GST applies to Canteens located in any type of establishment and liable to 5% GST vide notification 11/2017-CTR as amended - During the course of proceedings the applicant informed that the Government has issued a notification 13/2018-CTR dated 26 th July 2018 which amends the original notification 11/2017-CTR and in terms of which the old entry of Sl.no. 7(i) has been substituted by a new entry which states that supply of food and beverages in canteens, mess, cafetaria or dining spaces of an institution such as a school, college, hospital, industial unit, office would be liable to 5% GST and also the old entry 7(v) has been replaced; that in the light of the above amendments in the GST rate, the applicant seeks withdrawal of their application - Application dismissed as withdrawn: AAR
2018-TIOL-214-AAR-GST
Kanniwadi Nagarajan Sharmila
GST - Applicant seeks a ruling on the Rate of Tax and HSN Code for Non-woven Rice Bags.
Held: Non-woven fabric bags called as Rice Bags manufactured by the applicant falls under HSN 6305 3300 and the applicable rate for the bags of value not exceeding Rs.1000 per piece is 2.5% CGST as per Sl. No. 224 of Schedule I of Notification 1/2017-CTR and 2.5% SGST as per the parallel notification: AAR
