GST AAR CASES

2019-TIOL-47-AAR-GST

BM Industries

GST - Applicant on merger of his proprietorship firm as a going concern with a private limited company is not liable to pay GST on the fixed assets and current assets including stocks of raw material, semi-finished and finished goods - Input tax credit available in the credit ledger account shall be transferred to the respective account of the private limited company consequent upon merger subject to provisions of s.18(3) of the Act and rule 41 of the Rules, 2017 - provisions of s.18(3) and rule 41 are not applicable to balance lying in electronic cash ledger: AAR

2019-TIOL-46-AAR-GST

Boldrocchi India Pvt Ltd

GST - Pollution control device supplied by applicant for use in 'waste to energy plants/devices' are classifiable under CH 8421 of CTA, 1975 and covered under Schedule I to Notification 1/2017-CTR chargeable to GST @5%: AAR

 

2019-TIOL-45-AAR-GST

Awla Infra

GST - Private Entrepreneurs godowns built under PEG-2008 scheme of FCI and leased out to nodal agency (UPSWC) on lease and services basis for storage of FCI's food grain stocks (wheat) - Leasing of immovable property and support services in relation to agricultural produce provided by the applicant cannot be understood to be naturally bundled and supplied in the ordinary course of business; are in the nature of ‘mixed supply' and attracts GST @18% under SAC 997212: AAR

2019-TIOL-44-AAR-GST

Aristoplast Products Pvt Ltd

GST - Plastic Broom-sticks is classifiable under HSN Code 9603 2100 as ‘Others' and eligible for concessional rate of tax @5% under Notification 1/2017-CTR – ‘Portable Sprayers' is classifiable under HSN Code 8424 4100 and attracts GST @18%: AAR

 

GST AAAR CASES

2019-TIOL-04-AAAR-GST

Loyalty Solutions And Research Pvt Ltd

GST - The applicant under a reward point based loyalty programme, is providing certain services to its clients /partner which is based on issuance of reward points, also known as payback points by the applicant to end customers - For managing this loyalty programme, applicant is getting Management fee and/ or service charge fee - Applicant had sought a ruling as to whether this amount of issuance fee retained/forfeited by applicant would amount to consideration for actionable claims and subject to GST - AAR had held that t he value of points forfeited of the applicant on which money had been paid by the issuer of points on account of failure of the end customers to redeem the payback points within their validity period would amount to consideration received in lieu of services being provided by applicant to its clients and, therefore, would qualify as “supply of services” in terms of Section 7 of the Act and would be within the scope of levy of GST and consequently be chargeable to GST - appeal to AAAR.

Held: Consideration for the unredeemed payback points has already flowed from the partners - After validity period, the same has become appellant's Revenue by virtue of the contract for servicing of the loyalty scheme including the points ibid, executed between the partners and the appellants - Even if it is admitted that there is a provisioning of service by the appellant to the end-customers, there cannot be any such service or actionable claim against the payback points not redeemed by them against anyone - Advance Ruling upheld and appeal dismissed: AAAR

- Appeal dismissed: AAAR

2019-TIOL-03-AAAR-GST

Esprit India Pvt Ltd

GST -Appellant had sought advance ruling on the following questions viz. Taxability of stated services provided by Espirit India to its associate concern in Hong Kong EDCFE; whether the said services are covered under Export of Service having zero rated taxability; whether Espirit India is eligible for seeking refund of GST for the taxes paid on input services or goods or both - AAR had held that questions asked by the appellant were out of the scope of section 97(2) of the CGST Act and the questions could not be taken up by the AAR due to lack of jurisdiction - appeal to AAAR.

Held: AAR has rightly identified the SAC description with rate of tax while answering the first question and rightly declined answering the questions 2 and 3 raised by the applicant/appellant as being outside the purview of section 97(2) of the Act - Advance Ruling does not suffer from any infirmity or illegality and same is upheld - Appeal dismissed: AAAR

- Appeal dismissed: AAAR