GST AAR CASES
2018-TIOL-271-AAR-GST
Jotun India Pvt Ltd
GST - Applicant seeks an advance ruling on whether the supply of goods would be liable to tax in India when they are moved from a place located outside taxable territory and are delivered at a place outside taxable territory.
Held: In case of goods supplied on an out and out basis as in the present case, there is no levy till the time of their customs clearance in compliance with section 12 of the Customs Act, 1962 annd section 3 of the Customs Tariff Act, 1975 – in view thereof, the import of goods sold from and to a non-taxable territory though they are clearly in the nature of inter-state supply would come in the category of "exempt supply" as no tax/duty is leviable on them except in accordance with proviso to s.5(1) of the IGST Act, 2017 – the above legal position is also confirmed by CBIC Circular 3/1/2018-IGST dated 25.05.2018 – Question is, therefore, answered in the negative: AAR
- Application disposed of: AAR
2018-TIOL-270-AAR-GST
Maharashtra Rajya Sahakri Sang Maryadit
GST - Applicant conducts education and training programmes through its thirteen co-operative training centres and 33 district co-operative boards by charging fees to participants - Applicant is not a profit-making body and is doing this activity as statutory requirement of Maharashtra Co-operative Societies Act, 1960 - applicant seeks to know whether such services are exempted. Held: For providing such education and training, applicant is charging annual fees/contribution from their members as provided under the provisions of MCS Act, therefore, such activity is covered under the scope of supply of services and there is no exemption in respect of such supply - moreover, applicant is not funded in any way by the Government - supply is taxable under the CGST Act at appropriate rates: AAR
- Application disposed of: AAR
2018-TIOL-269-AAR-GST
Spaceage Syntex Pvt Ltd
GST - Applicant seeks a ruling as to whether GST is applicable on sale and/or purchase of DFIA licence. Held: Duty credit scrips and DFIAs are not one and the same or similar at all - they are both different incentives given to exporters with different conditions and have been separately defined and explained in different chapters of the FTP - Even though both are incentives to exporters to promote and increase exports from the country, both the schemes are used in different circumstances and in a different manner - Therefore, DFIA is distinguishable from "Duty Credit Scrips" and cannot be considered as exempted under Sr. no. 122A of Notification 2/2017-CTR even though it falls under CTH 4907 - DFIA will attract appropriate rate of GST as exemption is in respect of only Duty Credit Scrips - Clarification allegedly given by GST council in the minutes of 22 nd GST council meet dated 6 th October 2017 that Advance Authorisations are also included in the Duty Credit Scrips is not backed by any Circular, notification etc. and, therefore, the contention of the applicant cannot be accepted - GST is, therefore, applicable on sale/purchase or DFIA licence: AAR
- Application disposed of: AAR
2018-TIOL-268-AAR-GST
MUN Agro Industries Pvt Ltd
GST - Meat supplied in gunny bag, whether to be treated as unit container or not and whether the goods fall under CTH 0204 and are eligible for exemption under notification 02/2017-CTR. Held: Frozen meat of sheep/goat in HDPE gunny bag which do not indicate any information related to weight/number of carcass in such bags would tantamount to being a product not put in unit container and thus fall for classification under CTH 0204 and covered by sr. no. 9 of notification 2/2017-ITR and exempted - no reason to deviate from a similar view taken in the case of Monrovia Leasing & Finance P Ltd - 2018-TIOL-227-AAR-GST : AAR
- Application disposed of: AAR
2018-TIOL-267-AAR-GST
Ismail Ahamad Soofi
GST - Food is cooked at some main kitchen premises- such cooked food is carried from outside and no food item is prepared in the company premises of TCS or CTI or RMSL -Applicant is provided with space, utensils and other equipments, crockery, cutlery, water, electricity, cleaning of cafetaria etc. and menu is also dictated by the company - Catering services provided by the applicant under B2B Model and B2C model are to be classified as canteen services under Entry no. 7(i) or (iv) of Notification 11/2017-CTR depending on whether their canteen has the facility of air conditioning or central heating in any part of the establishment, at any time during the year - as per amending notification 46/2017-CTR their service would fall under sr. no. 7(i): AAR
- Application disposed of: AAR
2018-TIOL-266-AAR-GST
Ecool Gaming Solutions Pvt Ltd
GST - Applicant is acting as a distributor or marketing agent of State Government of Mizoram and procure online tickets from organising state for distribution across Maharashtra through dealers/sales terminals - Applicant is seeking an advance ruling as to whether they are liable to pay IGST u/s 5(3) and whether sr. no. 5 of notification 4/2017-ITR is applicable on supply received by them. Held: Applicant is recipient of supply in the form of lottery and is located in Maharashtra - The supplier of lottery is the State Government of Mizoram which is located outside State, therefore, as per the provisions of section 7(1) of the IGST Act, the transaction shall be treated as a supply of goods in the course of "inter-state" trade or commerce - in view of s.5(3) of IGST Act and notification 4/2017-ITR issued in this regard, the Integrated Tax is to be paid on Reverse charge basis by the recipient (applicant) of Inter-State supply of goods viz. "lottery" : AAR
- Application disposed of : AAR
2018-TIOL-265-AAR-GST
Behr-Hella Thermocontrol India Pvt Ltd
GST - Applicant seeks a ruling on whether they are liable to pay IGST on the testing services provided to its overseas group entities. Held: Prototypes are made physically available by the overseas clients to the supplier (applicant) in India and the applicant is providing testing services on such prototypes - such services clearly attract the provisions of section 13(3)(a) of the IGST Act and, therefore, it can be inferred that the said services are provided in India and are liable to tax - services cannot be treated as "zero rated supply" : AAR - Application disposed of: AAR
2018-TIOL-264-AAR-GST
Bajaj Finance Ltd
GST – Applicant seeks a ruling on whether penal interest is to be treated as "interest" for the purpose of exemption under sr.no. 27 of 12/2017-CTR. Held: Exemption for financial transactions under GST laws is only in respect of interest/discount earned or paid for loans, deposits or advances – if the transaction, as in the subject case deviates from the above, the same fails the test of being a "loan" , "deposit" or "advance" or the consideration is not an interest or discount, the exemption is not admissible – amount of penalty charges is recovered/imposed only because the loanee has delayed the payment of EMI (which consists of principal amount and interest amount) – recovery of penal charges is made in view of toleration of the act of the loanee by the applicant and, therefore, construes as "supply" as per sr. no. 5(e) of Schedule II of the CGST Act and is, therefore, taxable: AAR
- Application disposed of: AAR
2018-TIOL-263-AAR-GST
Vservglobal Pvt Ltd
GST - Applicant provides back office support services to overseas companies-clients who are engaged in Trading of chemicals and other products in International Trade - Applicant comes into picture only after finalization of purchase/sale order by a client - Applicant seeks a ruling as to whether the aforesaid services proposed to be rendered qualify as "zero rated supply" in terms of s.16 of the IGST Act. Held: Activities undertaken by the applicant are for and on behalf of the clients to facilitate supply of goods and services between their clients and their customers - Applicant clearly is covered and falls in the definition of "intermediary" as defined under the IGST Act and, therefore, provisions pertaining to 'place of supply' in case of intermediary services as provided in sub-section 8 of section 13 are relevant - place of supply in case of services provided by the applicant being intermediary would be the location of the supplier of services i.e. the location of the applicant which is the state of Maharashtra - to qualify as "export of services" all five ingredients of the definition should be satisifed simultaneously - condition (iii) not being satisfied such services do not qualify as " export of services" as defined u/s 2(6) of the Act and thus not a "zero rated supply" as per section 16(1) of the IGST Act, 2017: AAR
- Application disposed of: AAR
