NEWS FLASH
GST Council grants mega relief to taxpayers - ITC for last FY invoices allowed upto March 31, 2019 + New GST Return to be launched on trial basis from April 1, 2019 + amendment in Sec 50 to allow payment of interest on net cash liability
GST Council decides to reduce tax rates from 28% to 18% on Monitor TV, Power Bank Battery, cranks & gear boxes, video camera & used tyres of rubber
GST Council also exempts degree / diploma programmes of IIMs + supply of services by banks to saving accounts under PMJDY
GST rate on cinema tickets reduced - 12% on ticket of less than Rs 100 & 18% on above Rs 100
GST Council approves Single Interface for disbursal of refund + rationalisation of cash ledgers + extension of due dates for migration of taxpayers & GSTR-8 by e-commerce operators
GST Council approves extension of due dates for GSTR-9 & 9C along with major clarification on HSN Code for inward supplies, non-GST supply and additional payment of tax only in cash
GST Council approves proposal to deny generation of e-Way Bills if returns not filed for two consecutive tax periods + No ITC to be availed through GSTR-9 & 9C
GST Council to debate single window for refund
GST NEWS
GST Council decides to reduce tax rates on many items; allows ITC for last FY; single window for refund & amendments in GSTR-9 & 9C
AAR CASES
2018-TIOL-327-AAR-GST
Swapna Printing Works Pvt Ltd
GST - The applicant company is engaged in the business of printing - It procuring orders from foreign party to print religious texts and then delivers them to various places in India - The applicant seeks to know if such activity classifies as 'supply of goods' or 'supply of services' - It also seeks to know whether such activity can classify as 'export'.
Held - The activity in question does not classify as 'export' since the recipient is located in India - Moreover, the activity of printing the Holy Bible under specific orders received from the The Gideons International is a supply of service classifiable under SAC 9989 - Besides, the consideration for such activity is received in Indian (INR) currency - Thus the applicant is liable to pay GST on such supplies, since the same constitutes domestic supply: AAR
- Application disposed off : AUTHORITY FOR ADVANCE RULING
2018-TIOL-326-AAR-GST
Rites Ltd
GST - The applicant is a Consulting Engineer providing services of engineering consultancy & monitoring agency, both to the Government as well as private entity - The applicant seeks to know whether the rate of GST for construction of railway siding would be under Sr No 3(v)(a) or Sr No 3(xiii) of Notfn No 11/2017-CT(Rate) dated 28.06.2017 & the corresponding Notfn under the WBGST Act.
Held - The construction of private railway siding for carriage of coal and oil fuel to Raghunathpur TPS, as laid down in the agreement between the applicant and the Damodar Valley Corporation, classifies as a 'composite supply' of 'works contract' - Moreover, the same is taxable @ 12% u/s 3(v)(a) of Notfn No 11/2017-CT(Rate) dated 28.06.2017: AAR
- Application disposed off : AUTHORITY FOR ADVANCE RULING
2018-TIOL-325-AAR-GST
PEW Engineering Pvt Ltd
GST - The applicant company received a tender from the Indian Railways for retro-fitment of Twin Pipe Air Brake Systems on wagons - The applicant seeks to know whether such activity constitutes 'composite contract' or 'works contract' - In case it classifies as 'composite contract', then whether the principal supply would be the supply of the Twin Pipe Air Brake systems or the supply of services of fitting these goods to the wagons - The applicant also seeks to know the appropriate classification of the supply and the applicable rate of tax.
Held - The contract in question is to be treated as 'Composite supply', in which the supply of Twin Pipe Air Brake System is the principal supply - Moreover, the Twin Pipe Air Brake System is classifiable under Tariff Head 8607 21 00 - The same is taxable @ 5% as per Sr No 241 of Schedule I of Notification No. 01/2017 – CT (Rate) dated 28/06/2017 as clarified in TRU Clarification issued under F.No.354/1/2018-TRU dated 25/01/2018: AAR
- Application disposed off : AUTHORITY FOR ADVANCE RULING
2018-TIOL-324-AAR-GST
Lindstrom Services India Pvt Ltd
GST - The applicant company is the Indian subsidiary of a company located in Finland - The applicant is engaged in renting of work wear to its customers, along with services like washing, maintenance & repair of such work wear - It also provides other optional services like locker facility, modification & changes and sale of logos for the work wear, to its customers on need basis - The applicant approached the AAR seeking to know whether the renting of work wear qualifies as 'transfer of high goods' in terms of Entry 5(f) of Schedule II of the CGST Act - The applicant also sought to know whether such activities qualified as 'transfer of right in goods' in terms of Entry 1(b) of Schedule II to the CGST Act.
Held - The activity of renting of work wear qualifies as 'transfer of right to use' of goods in terms of Entry 5(f) of Schedule II of CGST Act - Moreover, the supply of renting of work wear along with supporting services such as transportation & weekly washing, for a single consideration, constitute 'mixed supply' u/s 2(74) of the CGST Act - Thereby, the question as to whether or not such transactions constitute 'composite supply', does not arise - The question as to what would be the 'principle supply' u/s 2(90) & applicable rate of GST, do not arise as well: AAR
- Application disposed off : AUTHORITY FOR ADVANCE RULING
2018-TIOL-323-AAR-GST
Kolte Patil Developers Ltd
GST - The applicant company is engaged in the construction of residential and commercial complex - It approached the Authority, seeking to know the procedure prescribed in law for cancellation of flats which are booked in the pre-GST regime - It also sought to know the GST liability if some amount is retained for cancellation, with the same being in the flat buyer's knowledge.
Held - Considering the nature of the transactions, it is seen that the issue at hand does not pertain to classification of goods or services, or applicability of some Notfn, or determination of time & value of supply of goods & services or admissibility of ITC - The tax refund sought herein is not regarding ITC of tax paid or deemed to have been paid - The issue also is not of determination of tax liability, whether the applicant needs to obtain registration or if any activity of the applicant amounts to supply of goods or services or both - Hence the issue raised is not one on which advance ruling can be sought under the GST Act - Thus the same is not maintainable: AAR
- Application dismissed : AUTHORITY FOR ADVANCE RULING
