2021-TIOL-1524-HC-RAJ-GST

Shree Mahesh Oil Products Vs UoI

2021-TIOL-174-AAR-GST

Cigma Medical Coding Pvt Ltd

GST - Applicant is engaged in providing training for students in medical coding. The medical coding examination is conducted and certified by American Academy of Professional Coders [AAPC] having its headquarters in Salt Lake City, Utah, United States of America [USA] - Applicant seeks a ruling as to (1) Whether the payment made to American Academy of Professional Coders (AAPC) as examination fee for students on behalf of some of the students of the applicant institute as a pure agent is service under GST and is there any tax liability for the same, when the applicant is collecting the actual examination fee and remitting that amount to AAPC as such without taking any service charges either from students or from AAPC & (2) Whether the payment made to AAPC as examination fee on behalf of outside students as pure agent is service under GST and is there any tax liability for the same, when the applicant is collecting the actual examination fee and remitting that amount to AAPC as such without taking any service charges either from students or from AAPC. 

Held:

+ The applicant has to satisfy the conditions stipulated in Rule 33 of the CGST Rules 2017 to exclude the amount collected as examination fees from the taxable value of services provided by the applicant. In the first situation, the applicant collects exam fee from the students who are enrolled for training with them and makes payment to AAPC on the basis of authorisation from the student. The examination fees is paid by the applicant to AAPC for the examination and certification services provided by the AAPC to the students in addition to the training and fee payment facilitation service provided to the students by the applicant. Therefore, all the conditions mentioned in the said Rule 33 for exclusion of the amount collected as examination fee from taxable value of services provided by the applicant is satisfied. 

+ In the second situation, the students are not enrolled with the applicant for training but have approached the applicant for facilitating payment of fees to AAPC for procuring the examination and certification services provided by AAPC. The applicant collects the actual amount of examination fee and remits that amount to AAPC on behalf of the student without collecting any service charges either from the student or from AAPC. In this situation the applicant collects the examination fee from the students and remits it to AAPC and no service charge is collected for the fee payment facilitation service either from the student or AAPC. In order to come within the scope and meaning of supply as defined in Section 7 of the CGST Act the activity / transaction shall be for a consideration in the course or furtherance of business. Though the fee payment facilitation services are provided by the applicant in the course or furtherance of their business as the same is being made without consideration it falls outside the meaning and scope of supply as defined in Section 7 of the CGST Act, 2017. Therefore, the applicant is not liable to pay GST on the fee payment facilitation services provided to outside students without consideration.

+ Question raised is whether the applicant can follow the essence of the ruling of the Karnataka Authority for Advance Ruling in M/s. Arivu Educational Consultants Private Ltd.- 2019-TIOL-379-AAR-GST - As the question is not in respect of any of the matters on which advance ruling can be sought u/s 97(2) of the Act, 2017, this authority is not having jurisdiction to give ruling on the question.

- Application disposed of: AAR

2021-TIOL-173-AAR-GST

Emerald Court Cooperative Housing Society Ltd

GST -  Applicant CHS is raising monthly bills on its members which consist of 2 parts, one is property tax on which GST is not being charged and another is 'Maintenance charges' on which GST is being charged - They seek opinion on the chargeability of GST on such transaction since there could be no sale by the Co-operative Housing Societies to its own permanent members, for doctrine of mutuality would come into play.

Held:   Vide clause 99, an amendment was proposed in the CGST Act, 2017, whereby, in section 7, in sub-section (1), after clause (a), clause (aa) was inserted and deemed to have been inserted with effect from the 1st day of July 2017 - Amendment mentioned above has received the assent of the President of India on the 28th March, 2021 and in view of the same the issue of principles of mutuality in the case of cooperative societies like the applicant has been settled - Amounts received by the applicant, against maintenance charges, from its members are nothing but consideration received for supply of goods/services as a separate entity - Applicant has to pay GST on the said amounts received against maintenance charges, from its members if the monthly subscription or contribution charged from the members is more then Rs.7,500/- per month: AAR

- Application disposed of: AAR

2021-TIOL-172-AAR-GST

Maharashtra State Dental Council

GST- Dentists Act, 1948 regulates the profession of dentistry - Applicant, Maharashtra State Dental Council, is not a profit making institution and the income earned by way of fees payable under Chapter IV of the Dentists Act, 1948 is used for the maintenance of this council and the income and expenditure is audited by the office of Chief Auditor, Local Fund Account, Maharashtra State - Applicant seeks to know as to whether online/offline tendering is to be considered as supply of goods or supply of services; the heading under which online/offline tendering should get taxed; whether the activities conducted by the Maharashtra State Dental Council are exempted by notification 12/2017-CTR and consequently the receipt of the registering fees paid under rule 73 of the  Bombay Dentists Rules, 1951 by the prospective dental practitioners to the council is exempted from levy of GST.

Held:   Online/Offline Tendering does not satisfy the definition of ‘goods' - Both are to be considered as rendering of services classifiable under services heading 9997 [Other miscellaneous services including services nowhere else specified] - Services (registration activities and their related activities) as rendered by the applicant does not specifically find mention in the notification 12/2017-CTR , hence are not exempted from GST: AAR

- Application disposed of: AAR

2021-TIOL-171-AAR-GST

Jimraj Industries

GST - In the instant case the first and the fifth question raised by the applicant pertains to the applicability of the provisions of Section 51 of the CGST Act to a third person namely; Kerala Agro Machinery Corporation Ltd. - Provisions of the CGST Act governing advance ruling does not provide for an applicant to seek a ruling regarding the applicability of the provisions of the Act or the notification issued thereunder to a third person other than the applicant - Questions at Sl. Nos. 2, 3 and 4 raised by the applicant are also not in respect of any matter that is specified in Section 97(2) of the CGST Act in relation to the supply of goods or services or both undertaken or proposed to be undertaken by the applicant and accordingly this authority has no jurisdiction to issue any ruling on the questions - Application rejected: AAR

- Application rejected: AAR

2021-TIOL-170-AAR-GST

Senior General Manager Ordnance Factory

GST -   Ordnance Factory Chanda (OFCh), the applicant, is a unit of Ordnance Factories Board (OFB) functioning under the Department of Defence Production and Supply, Ministry of Defence, Government of India - Applicant seeks an advance ruling on a number of issues and the decision of the AAR are as below. 

Held:

+ As per para 14(k) of Rule No. 138 of the CGST Rules 2018 (Notification No. 12/2018 (Central tax) e-way bill is not required to be generated when any movement of goods is being caused by defence formation under the Ministry of Defence as a consignor or a consignee. Since the applicant is functioning as a defence formation under the Ministry of Defence we are of the opinion that applicant is eligible for the benefit under Rule 138(14) (k) of the CGST Rules. It is not necessary to issue e-way bills for their supplies whenever movement of goods is being caused by them as a consignor or a consignee.

+ Applicant is manufacturing and transporting goods like propellant & explosives that are used in the manufacture of ammunition. The aforesaid goods manufactured by the applicant are rightly covered under Entry Sr. No. 21, Heading 9965 or 9967, clause (h) of the Notification No. 12/2017-CTR and, therefore, the said exemption is available to applicant's transaction in respect of transport of military or defence equipments.

+ In the present case, the main business activity is manufacturing of Defence goods and ancillary business activity is of renting of immovable property, which are covered under the term 'business' as per the sub-section 2(17) of the CGST Act, 2017. The applicant is charging some rent/consideration from customers within factory premises on immovable property like shops, which is given on lease basis. However, as mentioned above, the applicant is 'Central Government' and supplies renting of immovable property services - Considering the notification 3/2018-CTR and activity and status of the applicant as a 'Government', it has no liability to pay GST on said supply which is liable to be paid under reverse charge mechanism by the recipient of the service. As there are no taxes payable on outward supply the question of availing ITC does not arise as per the provisions of ITC under Sections 17(2) of the CGST Act, 2017. Therefore, the Applicant is not entitled to avail ITC in respect of such expenditures. 

+ Applicant's activities of supply of food and beverages at the industrial canteen inside the factory premises would attract NIL rate GST. The said supply is held to be exempt supply in terms of Sr. No. 6 of the Notification No. 12/2017-CTR. Since the subject supply has been held to be exempt supply by the Applicant, the ITC in respect of the food and beverages consumed in industrial factory canteen of the Applicant will not be available in terms of section 17(2) of the CGST Act, 2017. Applicant is not eligible for ITC on the inputs and input services (used for exempt outward supply) in industrial canteen i.e. on hired manpower services and refilled LPG cylinder.

+ Considering the amended provision of Section 17(2) of CGST Act [vide section 9 of the CGST Amendment Act, 2018], ITC would be available in respect of medicines purchased in factory hospital and other inputs and input services used in factory hospital with effect from 01.02.2019.

- Application disposed of: AAR

2021-TIOL-169-AAR-GST

Arco Electro Technologies Pvt Ltd

GST -   Brush Holder Assembly and parts, Lead Wires and Insulating Rods are to be classified under heading 86.07 only when they are manufactured as per the drawings and specifications given to the applicant by the Indian Railways and only when the said goods are used in traction motors meant for Railway Locomotives - rate of GST is 12%: AAR

- Application disposed of: AAR