GST - Activity of providing manpower services like Data Entry Operators, Field Engineers, Diploma Field Engineers, Senior Software Professionals, Software Engineers for IT Cell, Graduate Assistant, Office Assistant, Peon and Watchman to Karnataka Rural Road Development Agency is to manage the back end work and offices of KRRDA but is not involved directly in the activity of managing or construction of roads - activity is not directly connected to the work entrusted to a Panchayat under Article 243G of Constitution and is only for a support service which is not project specific and hence cannot be considered to be ‘by way of an activity in relation to a function entrusted' -contract of applicant with KRRDA is not covered under Entry no. 3 of 12/2017-CTR, hence not exempted: AAR

- Application disposed of: AAR

GST - Applicant is in the business of supplying shared workspace/office space to the freelancers, startups, small businesses and large enterprises - to this end, the applicant procures goods and services from various contractors for fitting-out of the workspace and provides the said workspace on rent to various companies and individuals as sharing work-spaces - applicant seeks to know whether they are eligible to avail ITC on the detachable 14mm Engineered wood with Oak Top wooden flooring which is movable in nature and capitalised as ‘furniture and fixture' and is not capitalised as ‘immovable property' - they also seek to know as to whether they are entitled to avail ITC on detachable sliding and stacking glass partition which is movable in nature and capitalised as ‘furniture and fixture' and is not capitalised as ‘immovable property'.

Held: Detachable wooden flooring and sliding and stacking of glass partitions are fixed to the buildings to create the office spaces and hence is a sine qua non for letting out of the office spaces - there cannot be office space unless these are fixed and hence it can be said to be permanently fastened to the building - since this activity amounts to addition or alteration to an immovable property, ITC is not available - Insofar as fixing of 14mm Engineering wood with Oak top wooden flooring is concerned, the same can be easily detached and reused - it only adds to the value to the building and is not sine qua non for the office space unlike the partitions and it is not covered under ‘construction of immovable property' - Therefore, ITC of GST is not available on the detachable sliding and stacking glass partition but ITC is available on the detachable 14mm Engineered Wood with Oak top wooden flooring: AAR

- Application disposed of: AAR

GST - Supply of trucks and spare parts by applicant to Satish Dhawan Space Centre (SHAR), SDSC SHAR and Electronics & Radar Development Establishment (LRDE) are covered under the description of goods specified in 45/2017-CTR and hence are eligible for a reduced rate of tax @5% under the Acts: AAR

- Application disposed of: AAR

GST - Applicant seeks to know the applicable rate of tax for the provision of construction service rendered to National Centre for Biological Sciences (NCBS).

Held: NCBS is neither set up by an Act or Parliament or State Legislature nor is established by any Government - Furthermore, the council which administers this institute has only four members appointed by the Government and hence the government does not have more than 90% control over it - Also, the institute is not established to carry out a function entrusted by the Government, hence NCBS is not a ‘ government entity' as per clause (x) of paragraph 4 of 11/2017-CTR - Works Contract Service provided by applicant to NCBS is, therefore, liable to tax @9% CGST in terms of Item no. (xii) of Serial no. 3 of 11/2017-CTR as amended and at same rates under KGST: AAR

- Application disposed of: AAR

GST - Applicant is in the business of maintaining gardens and landscape development for State and Central governments, local bodies and government undertakings - they are also providing pure services to these service recipients and the same is exempted by way of sr. no. 3 of 12/2017-CTR - applicant states that he is sub-contracting this work to the sub-contractors and seeks to know whether such sub-contact work is liable to tax under the Act.

Held : Even assuming that the activity of the applicant, is either covered in entry no. 3 or 3A of 12/2017-CTR, the activity supplied by the sub-contractor to the applicant would not be exempt as it is not covered either in Entry no. 3 or 3A of 12/2017-CTR since the applicant does not belong to the class of recipients enumerated therein: AAR

- Application disposed of: AAR

GST - Tax rate applicable on supply of construction service to land owner in lieu of transfer of development rights to promoters is @9% CGST and @ 9% KGST under entry no. 3(xii) of 11/2017-CTR - applicant eligible for ITC: AAR

GST - Since applicant is capitalising his portion of the building as an Immovable property, he is not eligible to claim ITC on the inputs and input services to the extent used for such construction as per s.17(5)(d) of the CGST Act, 2017 and consequently no question of using it against the output tax payable on letting out the same: AAR

- Application disposed of: AAR

GST - Applicant is developing a Shopping Mall which will include a hypermarket, multiplex cinema theatre complex, departmental stores, retail shops and food courts - Applicant seeks to know as to whether they are entitled for credit on the goods/services for the installation of chillers, air handling unit, lift, escalator, travellator, water treatment plant, sewage treatment plant, high-speed diesel yard, mechanical car park and indoor/outdoor surveillance system, DG sets, transformers, electric wiring and fixture, public health engineering, fire-fighting and water-management pump system.

Held:   Input Tax credit on the inward supplies of goods or services involved in the construction of immovable property which is a civil structure or building is not available to the applicant - Taxes paid on procurement of goods and/or services for installation of the Installations as listed in the application are regarded as blocked credits u/s 17(5) of the Act, 2017: AAR

- Application disposed of: AAR

GST - Applicant is an unregistered dealer engaged in trading of sun cured tobacco leaves - they procure the same from wholesalers and sell it in retail market - applicant has sought a ruling as to whether the tobacco leaves attract tax at the rate of 5% on forward charge or whether such Tobacco leaves can be classified as unmanufactured tobacco refuse (other than tobacco leaves) other than bearing brand name and attract tax @28%.

Held : Commodity in question is covered under Tariff Heading 2401 1020 since the commodity is no longer plain tobacco leaves and is covered by entry no. 13 of Schedule IV of 1/2017-CTR attracting tax @14% under CGST and similarly @14% under KGST - transaction is not covered under 4/2017-CTR since goods are not tobacco leaves and hence is not liable to tax under reverse charge - moreover, applicant is not purchasing the same from agriculturists and on this ground too, they are not covered under 4/2017-CTR: AAR

- Application disposed of: AAR

GST -  Applicant company has entered into an agreement with landlord Dr Banraji B H for getting the first and second floor of the building on monthly rent of Rs.2,35,000/- per month to the extent of 3 years exclusively use for accommodation services - applicant has entered into a leave and license agreement with Sodexo Food Solutions India P Ltd. for providing the sub-lease of the said premises to the extent of Rs.5,25,000/- per month and also provided facilities as per requirement of Sodexo Food Solutions India P Ltd. and executives for residential accommodation - applicant charges Rs.5,25,000/- for services of rent with water and maintenance and also raises invoice for Rs.1,22,893/- towards EMI per month for the additional facilities provided - applicant contends that the services by way of renting of residential dwelling for use as residence is exempt from GST in view of 12/2017-CTR, a ruling is sought on the subject matter.

Held: Classification of service provided by applicant is covered under SAC 997212, Entry no. 16 of 11/2017-CTR and security services is covered under SAC 998529, Entry no. 23(ii) of 11/2017-CTR and liable to tax at respective rates - classification of service provided by building owner to applicant is covered under SAC 997212 and liable to tax under 11/2017-CTR, Sr. no.16, exemption as claimed by applicant is not entertainable; EMI charges on goods supplied is an instalment for the goods transferred and is a supply of goods under clause 1(c) of Schedule II to the CGST Act and hence is liable to tax at the rate applicable to each of the goods supplied at the time of delivery of such goods: AAR

- Application disposed of: AAR

GST - Brand name KITCHEN KING, SBRM's K KING - 1/2017-CTR, 2/2017-CTR - Manufacturers of rice who sell rice under registered brand name are liable to GST @5% on such sale of rice - those who sell rice under unregistered brand name foregoing their actionable claim or enforceable right on such brand name by filing an affidavit and printing disclaimer on unit container to that effect are exempted from GST - manufacturers of rice, selling under de-registered brand name, are eligible for exemption from GST after voluntarily foregoing their actionable claim or enforceable right on such brand name by filing an affidavit and printing disclaimer on unit regarding regarding the same: AAR

- Application disposed of: AAR

GST - Applicant is providing e-books/journals through internet to various categories of customers including State/Central government, State/Central governmental authorities, individual consultants and not for profit organisations including educational institutions, hospitals etc. - they want to confirm their understanding as regards liability to GST on such supplies in various scenarios.

Held: Transaction of the applicant is supply of OIDAR services to customers in India - definition of “non-taxable online recipient” is given in s.2(16) of the IGST Act, 2017 - in the facts of the case, Applicant has to charge GST on supplies of OIDAR services made to unregistered persons in taxable territory for the purposes other than commerce, industry, business or profession; they are not required to charge GST on the OIDAR services made to Government, local authority, governmental authority and an individual, if they are registered persons; applicant is not required to charge GST on the OIDAR supplies made to a person in the taxable territory who receives the same for the purpose of commerce, industry or any other business or profession; burden of providing that the OIDAR services received by an unregistered person were for purposes other than commerce, industry or any other business or profession lies with the applicant: AAR

- Application disposed of: AAR

GST - Sub-contract of construction of independent houses by applicant under the main contract of construction of houses pertaining to the Pradhan Mantri Awas Yojana is covered under sub-item (c) of item (iv) of Sr. no. 3 of 11/2017-CTR, liable to CGST @6% and KGST @6%: AAR

- Application disposed of: AAR

GST -  Applicant is the owner of buses and takes ‘Private Service Vehicle' permits in the name of M/s Volvo - Private service vehicle is a type of permit where the bus is used exclusively for the permit holder's employees - Buses are used exclusively for M/s Volvo inasmuch as applicant picks up employees of the client from respective pick up points and drops them in the client's factory/office and vice versa - Services provided by applicant to M/s Volvo Group India Ltd. are ‘Passenger Transport Services' covered under heading 9964 and attracts CGST @9% in terms of Entry no. 8(vii) of 11/2017-CTR: AAR

- Application disposed of: AAR

GST - Supply of used Wind Turbine Generator (WTG) or Wind Mill with accessories is a composite supply of Wind Mills and is liable to tax @2.5% CGST in terms of Entry 234, Schedule I, 1/2017-CTR: AAR

- Application disposed of: AAR

GST - LPG Conversion kits are classifiable under HSN 8409 9990; covered under Sr. no. 116 of Schedule IV to 01/2017-CTR and liable to GST @28%: AAR

- Application disposed of: AAR

GST - Concessional rate of 5% GST in terms of Entry no. 252 of Schedule I of 1/2017-CTR is available to products Marine propeller, rudder set, stern tube set, propeller shaft and MS couplings subject to the condition that the said items form parts of goods falling under heading 8901, 8902, 8904, 8905, 8906 & 8907: AAR

- Application disposed of: AAR

GST - BBMP has appointed Karnataka Rural Infrastructure Development Limited (KRIDL) for shifting the waste from KCDC plant to Yelahanka site - KRIDL has subcontracted the work to applicant - Applicant is providing Hydraulic excavator and ten wheeler tippers to transport RDF (inerts) from KCDC processing plant Bommanahalli to Bellahalli land fill site near Yelahanka - they seek to know as to whether such services are liable to GST and at what rate; whether such activity is exempted in view of article 243G/243W of the Constitution of India.

Held: There is no involvement of goods and only services are provided - supply is not a composite supply of goods and services - Activity undertaken is exempted from payment of taxes as per Entry no. 3 of 12/2017-CTR as amended: AAR

- Application disposed of: AAR

GST - s.2(31) of the Act - Applicant receives subsidy from the Government in addition to the contracted price from the beneficiaries towards the supply of meals - applicant is discharging GST liability on the actual price collected from beneficiaries towards supply of such food - A subsidy or government incentive is a form of financial aid or support extended to an economic sector generally with the aim of promoting economic and social policy - Subsidy amount received from Government of Karnataka for the supply of service of food to the ultimate beneficiaries (consumers) in Indira Canteens by the applicant is excluded from the definition of consideration and would not form the part of the turnover on which tax is payable - consideration collected from beneficiaries is liable to tax after deducting the tax fraction as the price collected is inclusive of tax: AAR

- Application disposed of: AAR

GST - Applicant is an individual stated to be an employee of an overseas company engaged in business of manufacturing andselling various categories of distribution transformer components and accessories -applicant seeks a ruling as towhether theservices provided to M/s H-J family of companiesamounts to or results in supply of services or both, within the meaning of that term; whether the question, if answered, in the affirmative,applicant isrequired to take registration under the Act andwhat would be his liability as well as the time and value of the supply of services.

Held: Services providedwould beclassifiable under HSN 9983 11 under the description‘Other professional, technical and business services' and, therefore,applicant is required to get himself registered; rate of tax is GST 18%, Sr. no. 21(ii) of 11/2017-CTR - time of such supply would be determined as per provisions of s.13(2) of the Act and the value would be the amountreceived by applicant from recipient of services and alsoincludes the amounts reimbursed toapplicant for the expenses incurred: AAR

- Application disposed of: AAR

GST - Since the work involved relates to railway network, the contract can be said to be pertaining to Railways - The term ‘pertaining to Railways' is more expansive and includes other establishments other than Indian Railways - There is no stipulation in the said entry that this contract must be executed for the Railways but it is sufficient that it must be pertaining to Railways and the supplier and the recipient in each of the contract is immaterial - Contract work of the applicant to the main contractor, who is executing the Works Contract to M/s Dedicated Freight Corridor Corporation of India Limited (DRCCIL) is liable to tax at 6% under CGST - relevant entry is 3(v) of 11/2017-CTR - above rate of tax of GST @12% is applicable from 22.08.2017: AAR

- Application disposed of: AAR

GST - Royalty paid in respect of Mining lease is a part of consideration payable for licensing services for right to use minerals including exploration and evaluation falling under Heading 9973 - is taxable at the rate applicable on supply of like goods involving transfer of title in goods up to 31.12.2018 and taxable at 9% CGST and 9% SGST from 01.01.2019 under residual entries of Sr. no. 17 of 11/2017-CTR as amended: AAR

GST -  Statutory contribution made to District Mineral Foundation (DMF) and National Mineral Exploration Trust (NMET) as per MMDR Act, 1957 is also a part of the consideration payable for the licensing services for right to use minerals including exploration and evaluation: AAR

GST - Since supply of services by the government to a business entity located in the taxable territory are covered under Sr. no. 5 of 13/2017-CT, the liability to pay tax is on the recipient of such services on reverse charge basis: AAR

- Application disposed of: AAR

GST - Royalty paid in respect of Mining lease is a part of consideration payable for licensing services for right to use minerals including exploration and evaluation falling under Heading 9973 - is taxable at the rate applicable on supply of like goods involving transfer of title in goods up to 31.12.2018 and taxable at 9% CGST and 9% SGST from 01.01.2019 under residual entries of Sr. no. 17 of 11/2017-CTR as amended: AAR

GST - Statutory contribution made to District Mineral Foundation (DMF) as per MMDR Act, 1957 is also a part of the consideration payable for the licensing services for right to use minerals including exploration and evaluation: AAR

- Application disposed of: AAR

GST - Sale of packed items like packaged food products which cannot be consumed on as is basis but needs further cooking operations and Other packaged food products which are not processed by applicant and sold as purchased are taxable at the appropriate rates and are not covered under the tax rate applicable to Group 99633 as those relates only to services - applicant is eligible to take ITC relatable to supply of such goods: AAR

- Application disposed of: AAR

GST -  Applicant is in the business of providing health care services and caters to Government hospitals only on PPP model for a limited contract period - they have been allotted the contract of providing diagnostic services in government hospitals through a tender selection process - all expenditure related to the services provided by applicant are borne by the applicant themselves and the applicant receives bills for the same from vendors of different GST slabs which expenses the applicant pays but they do not take any ITC as they have been advised by experts - applicant, therefore, seeks a ruling as to whether they, being a health care service provider, are exempted from tax or not.

Held: Diagnostic services provided by applicant to hospitals and other establishments are covered under Entry no. 74 of 12/2017-CTR and are exempted from CSGT - and parallelly under KGST: AAR

- Application disposed of: AAR

GST - Services provided by applicant to Electricity Supply companies (wholly owned by Government of Karnataka undertakings) by way of construction, erection, commissioning, installation, completion etc. are not covered under Entry no. 3(vi)(a) of 12/2017-CTR or Entry no. 3(vi)(a) of 8/2017-ITR as amended and consequently are not eligible for being taxed at the lower rate of 12% GST but are rightly chargeable to GST @18% - predominant activity of the Electricity distribution companies is to supply electricity and they works executed by the applicant are used for this only and hence are original works meant predominantly for use for commerce, industry or any other business or profession - contracts do not satisfy the fourth condition required for them to be covered under entry no. 3(vi)(a) to the aforesaid notifications: AAR

- Application disposed of: AAR

GST - Applicant seeks a ruling as to whether under reverse charge mechanism, IGST should be paid by the importer on Ocean freight in the case of CIF basis contract.

Held:  Issue is sub-judice - Subject to the final decision in the issue by the Gujarat High Court, it is ruled that IGST should be paid by the importer on Ocean freight in case of CIF basis contract under Reverse charge: AAR

- Application disposed of: AAR

GST - Volume discount received on purchases in the form of credit note without any adjustment of GST is not liable for GST - Volume discount received on Retail (on sales) in the form of credit note without any adjustment of GST is not liable for GST - since amount received in the form of credit note is actually a discount and not a supply by applicant to the authorised supplier, the applicant need not issue tax invoice for this transaction: AAR

- Application disposed of: AAR

GST - Activity of technical testing and analysis is a supply of service - such activity carried out for consideration and supplied to a person outside India is also a supply of service - applicant is required to issue a tax invoice for supply of such services on both occasions - determining as to whether the transaction is ‘export of services' is not within the ambit of the Authority since it involves the determination of place of supply: AAR

- Application disposed of: AAR

GST -  Applicant is engaged in the business of purchasing standing live trees from the Deputy Conservator of Forests, Bangalore rural through online tender cum auction held at MSTC portal - applicant submitted that the work order received from Deputy Conservator of Forest, Kolar for cutting and removal of KARI JALLI (Acacia Trees) includes GST @18% and similarly that received from Deputy Conservator of Forest, Bangalore Rural for cutting and removal of Acacia Auriculiformis and Acacia trees includes GST @18% - Applicant submits that though standing live trees are exempted from GST as per 2/2017-CTR, the Deputy Conservator of Forests is demanding payment of GST @18% - ruling is, therefore, sought as to the rate of GST on live standing trees.

Held: As per the work order issued by the Social Forestry Department, some areas are allotted to the applicant to cut and remove standing live trees - Applicant is engaged in cutting standing live trees and removing the same from that place and thus the Forest department has sold the standing live trees to the applicant to cut and remove the same without damaging any other trees - ultimately, applicant is removing the cut log and not the live trees - what is appropriated by the applicant is timber logs and not live trees as the contract is clearly mandating that the goods are to be cut and then appropriated to the contract - Thus applicant is finally removing cut logs from that allotted area and not the live trees - Transaction of the applicant of removing rough wood after cutting the trees and appropriating the wood logs under contract is covered under Entry no. 134 of Schedule III of 1/2017-CTR and hence chargeable to GST @18%: AAR