GST AAAR CASE
2018-TIOL-27-AAAR-GST
East Hooghly Polyplast Pvt Ltd
GST - In view of Note 1(h) to Section XI of the Customs Tariff Act, Tarpaulins of HDPE woven fabrics, laminated as per specification of IS 7903: 2017 being expressly excluded, same do not merit classification under Chapter 63 - Ruling pronounced by AAR [ 2018-TIOL-116-AAR-GST ] is correct and justified - Appeal rejected: AAAR
- Appeal rejected: AAAR
GST AAR CASES
2018-TIOL-313-AAR-GST
Sir JJ College Of Architecture Consultancy Cell
GST - Applicant seeks a ruling on as to whether they shall charge GST on the consultancy services rendered to Municipal Corporation of Greater Mumbai (MCGM) for an upcoming project of establishment and development of textile museum in Mumbai.
Held: In view of the facts and documentary evidences and submissions made by the applicant in respect of registration under Stamp Act as Works Contract Agreement, Services being provided by the applicant to MCGM are in the nature of Works Contract Services and, therefore, they would in no way be eligible for exemption under Sr. no. 3 of Notification 12/2017-CTR - Applicant to charge GST on the Consultancy Services rendered to MCGM: AAR
- Application disposed of: AAR
2018-TIOL-312-AAR-GST
Silgan Dispensing Systems India Pvt Ltd
GST - Applicant seeks a ruling as to whether transfer of machines & moulds (capital goods) from the premises of the job worker to another job worker, which were originally received by the said job worker under the erstwhile CEA, 1944 will constitute as ‘supply' under the GST Act.
Held: It appears that neither the applicant nor the first principal manufacturer have carried forward the capital goods into the GST regime by following the procedure prescribed by section 117 of the Act, hence the subject transaction of transferring the capital goods from the first job worker to the second job worker would be an independent and fresh transaction for which the same would be treated as supply of goods and will be liable to tax under the GST laws: AAR
- Application disposed of: AAR
2018-TIOL-311-AAR-GST
Signature International Foods India Pvt Ltd
GST - Applicant is engaged in the business of manufacturing, trading and exporting bakery products which includes flatbreads - applicant seeking classification of the goods/services.
Held: Unleavened flatbreads products such as plain chapati, tortilla, tortilla wraps, roti, roti rolls, wraps, paratha and paratha wraps are covered under entry no. 99A of Schedule I and liable to tax @5% - Leavened flatbreads such as Naan, Kulcha and Chalupa are not covered by the expression ‘bread' but would be covered under residual entry 453 of Schedule III and liable for tax @18% - Pita bread is covered by expression ‘bread' under Entry no. 97 of exemption notification - products like Corn chips, Corn Taco and Corn, Taco strips would be treated as ‘wafer' under entry no. 16 of Schedule III of Rate notification and would be liable to tax @18% - Pancakes would be treated as “All Goods” as mentioned under entry no. 16 of Schedule III and would be liable to tax @18% - Pizza Base would be treated as Pizza bread as mentioned under entry no. 99 and is liable to tax @18%: AAR
- Application disposed of: AAR
2018-TIOL-310-AAR-GST
Sadashiv Anajee Shete
GST - Applicant is engaged in the business of assisting believers, followers and devotees to book Pundits/Brahmins online for their religious ceremonies viz. pujas, abhesheks etc. and said services are being provided through applicant's own website - applicant hires various expert Pundits in order to provide services of religious ceremony - applicant seeks a ruling as to whether exemption under sr. no. 13 of notification 12/2017-CTR is applicable; whether applicant is liable to get registered; and if liable to pay GST, on what value should the same be discharged, whether on the commission received or on the booking value received from users.
Held: Applicant is acting as an ‘intermediary' person - applicant is not covered under the scope of exemption entry no. 13 of notification 12/2017-CTR since it is the Pundit who is the person actually performing the services of puja, abheshek etc. - applicant is covered under section 2(44) and 2(45) of GST Act as an ‘Electronic Commerce operator' and considering section 24 and category (x) mentioned therein, they are required to compulsorily register under the Act - Applicant is liable to pay GST on the value of commission received from website users/pundits and not on the total amount received: AAR
- Application disposed of: AAR
2018-TIOL-309-AAR-GST
Sabre Travel Network India Pvt Ltd
GST - Applicant seeks a ruling as to whether the marketing, promotion and distribution services provided by Sabre India to Sabre APAC would be subject to tax under the CGST Act, 2017 or would remain excluded under the said Act as the said activities qualify as export of service in accordance with section 2(6) of the IGST Act, 2017 read with the said Acts.
Held: As per intra-state provisions contained in section 8(2), the said provisions are subject to the provisions of section 12 of the IGST Act and the provisions of section 12 would be applicable only for determining the place of supply of service where the location of supplier of services and the location of recipient of the services is in India - when recipient is located outside India, the said provisions of section 12 cannot be made applicable and since provisions of section 8(2) are inter-linked with provisions of section 12, the same cannot be made applicable in case the recipient of service is located outside India - in case the intermediary services are provided to the recipient located outside India, the inter-state provisions as contained under section 7(5)(c) shall be applicable and hence IGST is payable under such transaction - resultantly, the marketing, promotion and distribution services provided by applicant to Sabre APAC would be subject to tax under the GST Act: AAR
- Application disposed of: AAR
2018-TIOL-308-AAR-GST
Merck Life Science Pvt Ltd
GST - Merck Life Science P Ltd. has entered into business transfer agreement with Merck Limited (seller) wherein the seller has agreed to sell, transfer, convey, assign and deliver to the applicant or to any affiliates as directed by applicant for the BPL business which would be transferred as going concern on a slump sale basis - Ruling sought as to whether applicant's direction to the seller for direct transfer of BP business to MSPL and PM business to MPMPL respectively would qualify as a ‘supply between the applicant' and ‘MSPL/MPMPL'.
Held: Role of the applicant is clearly a service provider covered in para 5(e) of Schedule II of Section 7 of the CGST Act, wherein the applicant is doing the act of giving direction to the seller for transfer of BP and PM businesses to MSPL and MPMPL respectively as per his directions and terms and conditions agreeable to him due to special authority in this regard, vested in him through the agreement between him and the seller - therefore, question answered in the affirmative; value is to be determined as per rule 28 of the CGST Rules, 2017: AAR
- Application disposed of: AAR
2018-TIOL-307-AAR-GST
Mazagon Dock Shipbuilders Ltd
GST - Classfication of goods under Sr. no. 252 of the Schedule I to notification 1/2017-ITR depends solely on the nature of use to which the goods are put to - Goods that are essential components without which the ship would not be complete and would not exist are recognised as ‘Parts' and covered under this entry and taxable @5% - Other items, the tax rate will be applicable as per the respective Schedule entry - Welding electrodes, adhesives, compressed air, industrial cutting gases etc. cannot be considered as parts of a warship/submarine as they are essentially in the form of consumables - questions as to what is the procedure required to be followed with vendors; admissibility of ITC etc. are outside the purview of the authority: AAR
- Application disposed of:AAR
2018-TIOL-306-AAR-GST
Lear Automotive India Pvt Ltd
GST - Amortized value of tool received on FOC basis from the customer is not required to be included in the value of finished goods manufactured and supplied by applicant to customer - Paragraphs 1.1 and 1.2 of the CBIC Circular 47/21/2018-GST cover the case and not paragraph 1.3: AAR
- Application disposed of: AAR
2018-TIOL-305-AAR-GST
Eiffel Hills And Dales Developers Pvt Ltd
GST - Applicant is a construction company engaged in the business of Mechanical, electrical and plumbing (MEP) turnkey project contracting and engineering - Applicant seeks a ruling as to the classification and rate of tax.
Held: Electrical contract which involves supply of taxable goods and services is a composite supply as defined u/s 2(30) of the GST Act and the said composite supply is a Works Contract as defined u/s 2(119) of the GST Act - applicant has not submitted any details/evidence such as agreement entered into with developer/builder for the provisions of MEP services, therefore, in the absence of the same, it is not possible to reach a definite conclusion as regards applicability of notification and rate of tax: AAR
Application disposed of:AAR
2018-TIOL-304-AAR-GST
Dbs Marine Services Pvt Ltd
GST - Applicant is engaged in selecting and recruiting the shipping personnel on behalf of the foreign ship owner and have been charging administrative fees in this regard and paying GST on the same - Applicant seeks a ruling as to whether GST is applicable on reimbursement of salary on behalf of foreign entity.
Held: Applicant is acting as ‘pure agent' of M/s RMS Ltd., Bermuda inasmuch as the entire amount received by them as ‘Crews' salary' will be disbursed to the crew and no amounts from the said receipt will be used by the applicant for their own interest - for performing as a ‘pure agent' they will also be receiving compensation separately in the form of fixed fees to be charged as service charges - applicant, therefore, will not be liable to pay GST on Salary amount received from M/s RMS Ltd., Bermuda: AAR
- Application disposed of: AAR
2018-TIOL-303-AAR-GST
Crown Beers India Pvt Ltd
GST - Applicant has entered into a tie-up agreement with Privilege Industries Limited (PIL) whereby PIL brews, manufactures, packages and supplies beer from its bottling unit located in Maharashtra to buyers/distributors in the territory identified by applicant - applicant seeks a ruling as to whether GST can be levied on the above mentioned consideration paid for supply of alcoholic liquor for human consumption.
Held: From the transaction between the applicant and PIL it is clear that in respect of the ‘costs' paid and received there is no supply of goods/services in the form of sale, transfer, barter, exchange etc. and, therefore, there is no requirement to pay GST on such costs paid by applicant to PIL - however, in respect of the ‘fixed costs' paid by applicant to PIL, the same are because they are providing job work services to the applicant - entire services rendered by PIL and the consideration paid by the applicant for receiving such services in the course of furtherance of business of both, the applicant and PIL, hence this amount is liable to tax and such tax is payable by PIL - As for the tax rate, had the applicant brewed, manufactured, packaged and supplied beer on their own account then their activity would not have been liable to tax under the GST laws since supply of alcoholic liquor for human consumption is not taxable under GST laws - however, the job work which is a service provided by PIL that is required to be taxed: AAR
- Application disposed of: AAR
ARTICLES
Bringing GST on Track - A lot more needs to be done!
GST on Haj Air Travel
TDS on non-cash payments - A 'kind' consideration
