2021-TIOL-09-AAR-GST
Uday Laxman Jadhav
GST - Services provided of (i) Refining of gold from old jewellery and coins/biscuits, and (ii) Conversion of old gold jewellery into coins/biscuits as per specification given by service recipient will be covered under the definition of Job work under Section 2(68) of CGST Act, 2017 only when provided to registered person and not as Job work when provided to un-registered person - Such services merit classification under SAC 9988 - The rate of GST for the above service provided to registered person is 5% in terms of Sr. No. 26(i)(c) of Notification No. 11/2017-CTR - The rate of GST for the above service provided to un-registered person is 18% in terms of Sr. No. 26 (iv) of Notification No. 11/2017-CTR : AAR
GST - Services of testing of purity of gold is classifiable 9983 and GST rate is 18% in terms of Sr. No. 21 of Notification No. 11/2017-CTR : AAR
GST - Service of refining of old gold jewellery or coins/ biscuit as well as testing of purity of gold will be covered under Mixed supply in terms of Section 2(74) of CGST Act, 2017 - The GST rate would be 18%: AAR
- Application disposed of: AAR
2021-TIOL-08-AAR-GST
Spx Flow Technology India Pvt Ltd
GST - AAR - Precedent - A s per Section 103 of the CGST Act, 2017, the Advance Ruling pronounced by the Authority or the Appellate Authority shall be binding only on the applicant who had sought it and on the officer concerned or the jurisdictional officer in respect of the applicant concerned and, therefore, cannot be relied upon by the applicant in the instant case: AAR
GST - Company is engaged in the business of manufacture of goods like pumps designed for handling water, single and multi-stage pumps designed for handling water, single and multi- stage pumps, dairy machine etc. falling under Chapter 84 and other such products which are classifiable under Chapter 84 of the GST Tariff - The applicant also carries out business of trading in such goods - A pplicant's parent company located in Poland is engaged in shipping goods such as spare parts of dairy machinery to recipient customer company located in Bangladesh - The transaction involves generation of one invoice by M/s. SPX Flow Technology, Poland to the applicant and generation of another invoice by the applicant on the recipient company which is located in Bangladesh - R ecipient customer company in Bangladesh which is M/s. BRAC Dairy and Food Project, receives such dairy machinery and its spare parts directly from SPX Flow Technology, Poland - In other words, the goods are directly delivered from Poland to the customer located at Dhaka on CIF basis - While undertaking this transaction, the invoices are generated parallel to each other, whereby M/s. SPX Flow Technology, Poland raises a set of invoices to SPX Flow Technology India P vt. Ltd. (applicant) and at the same point of time, the applicant company raises another set of invoice to M/s. BRAC Dairy and Food Project, Bangladesh - Applicant states that from the combined reading of the relevant provisions of the IGST Act, Customs Tariff Act and the Customs Act, it comes out that IGST can be levied and collected only when the duties of customs are assessed on the imported goods and on the duty that is determined under Section 15 of the Customs Act, 1962; that in the present case, the goods are not crossing the customs frontiers of India and, therefore, the goods cannot be considered as ‘imported goods' for the purpose of levy of customs duty and also for the levy of IGST on such goods and, therefore, in the present case, IGST cannot be levied on this transaction under the Customs Tariff Act, 1975 considering such transaction to be a transaction of import of goods - Applicant has, therefore, sought a ruling on the following questions viz. Whether the activity undertaken by the applicant is covered by Entry No.7 in Schedule 3 of the CGST Act, 2017? Whether the applicant is liable to pay IGST on out and out transactions taking place beyond the Customs frontiers of India?
Held: From a combined reading of the provisions of the IGST Act, 2017 [section 2(10), 7(2), 5(1)], the Customs Tariff Act, 1975 [section 3(7)], and the Customs Act, 1962 [sections 12, 15], it is evident that the integrated tax on goods imported into India shall be levied and collected at the point when duties of customs are levied on the said goods under Section 12 of the Customs Act, 1962 and on the date determined as per provisions of Section 15 of the Customs Act, 1962 - In the instant case, it is an undisputed fact that the supply involves movement of goods and, therefore, the place of supply would be the termination for delivery to the recipient - The goods under consideration are supplied to overseas buyers as declared by the applicant and as such the place of supply will be a place outside India - Further, the supplier is the applicant who has declared the principal place of business within India and issues the invoices for sale of such goods - The above indicates that the supplier is located in India and the place of supply is outside India and as such the same would be Inter-state supply in terms of the provisions of Section 7(5) of IGST Act, 2017 - Thus, it is very clear that the transaction undertaken by the applicant tantamount to supply and is an Inter-state supply - It is obvious that IGST will be leviable unless the goods are exempted or are zero-rated supplies which have been defined as export of goods or services in terms of the provisions of Section 16 of the IGST Act, 2017 - In the instant case, the goods have not crossed the Indian customs frontier and as such it is clear that the goods are not physically available in the Indian territory - When the goods are not physically available in the Indian territory, the question of taking goods out of India does not arise - Thus, the subject transaction does not qualify as export of goods - In view of the above, it appears that the transaction is covered under the ambit of Inter-state supply and is neither exempted nor covered under export of goods or services, thus, the theory of elimination takes us to the conclusion that such supplies will be subject to levy of IGST - However, vide Central Goods and Services Tax (Amendment) Act, 2018, Schedule-III of the CGST Act, 2017 (which covers activities or transactions which shall be treated neither as a supply of goods nor a supply of services) has been amended with effect from 01.02.2019 (as per Notification No.02/2019-Central Tax dated 29.01.2019) and entries 7 [ Supply of goods from a place in the non-taxable territory to another place in the non-taxable territory without such goods entering into India ] and 8 have been inserted under the said Schedule - I n view of the amendment in Schedule-III of the CGST Act, 2017, supply of goods from a place in the non-taxable territory to another place in the non-taxable territory without such goods entering into India shall be treated neither as a supply of goods nor a supply of services with effect from 01.02.2019 - Since in the instant case, the supply of goods takes place from Poland (which is a non-taxable territory) directly to Bangladesh (which is also a non-taxable territory) without the said goods entering into India, the transactions mentioned in the instant case are similar to that as mentioned in Entry No.7 of Schedule-III of the CGST Act, 2017 - Therefore, in view of the facts mentioned above, Authority concludes that no GST is leviable on such type of transactions which have taken place with effect from 01.02.2019 and onwards: AAR
Conclusion:
GST - A ctivity undertaken by the applicant M/s. SPX Flow Technology (India) Pvt. Ltd., Ahmedabad is covered under Entry No.7 in Schedule 3 of the CGST Act, 2017 in respect of the transactions undertaken for the period from 01.02.2019 onwards - Applicable IGST is payable on goods sold to customer located outside India, where goods are shipped directly from the vendor's premises (located outside India) to the customer's premises (located outside India) for such transactions effected upto 31.01.2019 - However, no IGST is payable on such transactions effected from 01.02.2019 onwards: AAR
- Application disposed of: AAR
2021-TIOL-07-AAR-GST
Jay Chemical Industries Ltd
GST - s.16(1) of Act, 2017 - Company is required to reverse input tax credit on inputs consumed in dye intermediates (which is also a finished goods) where such goods have been destroyed in fire - And so also, ITC taken on input services used in or in relation to manufacture or production of said goods - Inputs and capital goods cannot be said to have been used in course of furtherance of business as the finished goods have been destroyed in fire: AAR
- Application disposed of: AAR
2021-TIOL-06-AAR-GST
Capital Commercial Cooperative Service Society Ltd
GST - Applicant is a registered commercial co-operative society providing services of maintenance of common facilities/amenities for members - they have collected money from their members under the following heads viz. Monthly maintenance fees (recurring basis) and Common maintenance fund/deposit (one-time basis) - Applicant seeks a ruling as to whether they are liable to pay GST on the common maintenance fund/deposit collected from their members and if yes, what shall be considered as the time of supply for such transaction.
Held: Applicant is a registered entity as an Association of Persons and has a legal existence separate from its members - The applicant is collecting the amounts towards "Common Maintenance Fund (Deposit)" @ Rs.250/- per square foot of built-up area for future supply of services viz. maintenance, repair etc. of the common amenities, facilities, services, conveniences, utilities and common infrastructure of the Scheme meant for its members - It is a fact that the Common Maintenance Fund (Deposit) is mandatory under the Bye-laws of the Co-operative Societies/Resident Welfare Associations and is in the nature of a non-returnable deposit towards unforeseen events or planned events - Such deposit is never to be returned to the members, but same along with its interest will be used as and when required in future for maintenance, repair etc. of the common amenities, facilities, services, conveniences, utilities and common infrastructure of the Scheme meant for its members - Thus, the applicant, in addition to maintenance charges, also collected amount as Common Maintenance Fund (Deposit) from their members which is non-returnable - Since, the said amount is collected as non-returnable common maintenance fund, such deposits can be considered for such supply of service as mentioned above and, hence, will be liable to tax - It is worthwhile to mention that the applicant themselves stated in the application that sometimes, maintenance deposit standing in the name of the person who is leaving this society shall get transferred to new person who is coming in as new member of this society in his place - Thus, in this case, said deposit is also not refunded but is transferred into account of new member by making accounting entry - In the instant case, the common maintenance fund/deposit so collected is the amount collected towards the future supply of service of maintenance, repair etc. and accordingly, gets applied as consideration towards supply of services only at the time of actual supply of services - Therefore, the amount collected towards the common maintenance fund/deposit do not form part of consideration towards supply of services at the time of collection, however, the amounts so utilized for provision of service are liable to GST at the time of actual supply of service: AAR
- Application disposed of: AAR
2021-TIOL-05-AAR-GST
Gujarat Plast Industries
GST - Narrow woven fabrics of polyester yarn of a width not exceeding 30 cm but not provided with selvedges (flat or tubular) on both edges manufactured by applicant is classifiable under CSH 5407 1019 of Customs Tariff Act, 1975 and attracts GST @5%, Sr. no. 217, Schedule I of 1/2017-CTR : AAR
- Application disposed of: AAR
2021-TIOL-04-AAR-GST
Sagar Powertex Pvt Ltd
GST - Supplier of the service is the applicant and the service recipient is M/s UKIL Machinery Co. Ltd., Republic of Korea - Services provided by the applicant are in the nature of services of commission agents or commodity brokers who negotiate between buyers and sellers as a facilitator for the supply of goods for which they are paid a fee or commission - The said service can also be called as 'intermediary services' - Services provided by the applicant is 'Intermediary services' and appears at sub-section 8(b) of Section 13 of the IGST Act, 2017 - Also, sub-section (8) clearly mentions that the place of supply in respect of the services described under sub-section shall be the location of the supplier of services - Supplier in the instant case is the applicant and the location of the said supplier is in Gujarat - Since the location of the applicant, who is supplier of services, is in Gujarat and both the supplier of service as well as the place of supply of service is in Gujarat, the supply of services would be considered akin to intra-state supply of services and would be liable to CGST and SGST as per s.9(1) of the Act, 2017: AAR
- Application disposed of: AAR
2021-TIOL-03-AAR-GST
Shri Sai Pest Control
GST - Fumigation service provided in a Customs bonded warehouse of agriculture produce is classifiable under SAC 99853 and taxable @18% in view of Entry no. 23(ii) of 11/2017-CTR - such service of fumigation provided for exported and imported agriculture produce is not covered under Sl. No. 54(h) of 12/2017-CTR - in view of the absence of any facts on record, Authority is not in a position to conclude that the custom bonded warehouse are used exclusively only for storage of agriculture product and are not used for storage of non-agriculture produce: AAR
- Application disposed of: AAR
2021-TIOL-02-AAR-GST
Gujarat Industrial Security Force Society
GST - Applicant M/s. Gujarat Industrial Security Force Society (GISFS) has to charge/pay GST @ 18% on the entire amount received by them from their clients, which includes the wages etc. to be paid to the Security Guards as well as the amount received from their clients as establishment charges to run their administration office and to cover their administration cost like administration staff salary, stationery, electricity of admin office etc. - Applicant would be eligible to take GST credit subject to the fulfilment of the conditions/provisions envisaged in the relevant sections and rules of the CGST Act, 2017 and the CGST Rules, 2017 respectively: AAR
- Application disposed of: AAR
2021-TIOL-01-AAR-GST
Bhadreshkumar Rameshchandra Dave
GST - Supply of labour (SAC 998519) attracts GST @18 in terms of Sr. no. 23 of 11/2017-CTR : AAR
- Application disposed of: AAR
