2021-TIOL-1728-HC-KAR-GST
Badiger Raghavendra Vs Asstt. CCT
GST - The petitioner, a 'registered supplier' under section 22 r/w section 26 of CGST Act, 2017 is grieving as to non-consideration of his Revocation Applications wherein he has sought for rescinding of "Order for cancellation of registration dated 23.07.2019" - A Writ of Mandamus issues directing the respondents to consider and cause to be considered subject Revocation Applications of petitioner in terms of Sec. 30 of the Act within a period of six weeks - The respondents shall pay to the petitioner a sum of Rs.1,000/- per day for the delay brooked in taking the call on subject applications, apart from they running the risk of being hauled up for contempt: HC
- Writ petition allowed: KARNATAKA HIGH COURT
2021-TIOL-203-AAR-GST
Rajkot Nagarik Sahakari Bank Ltd
GST - State Govt. announced "Atma Nirbhar Gujarat Sahay Yojna" wherein Nagarik Sahakari Banks and credit co-operative societies were to provide loans without securities up to Rs. 1 lacs to customers charging 8% interest - Out of this 8% interest, 2% interest portion was to be paid by the customer and remaining 6% interest portion was borne by the State Government - A pplicant has submitted that after disbursement of loan to the beneficiaries, they had forwarded the claim for incentive through the office of District Registrar, Co-operative Society, Rajkot and after considering the said claim, the Govt. of Gujarat has sanctioned incentive to the tune of Rs.9,24,28,936/- - A pplicant has submitted that the "subsidy" received in the form of "incentive" cannot be considered as consideration under the provisions of Section 2(31) of CGST Act and, therefore, not chargeable to GST.
Held: Incentive specifically provided to the applicant is for motivation and encouragement for the applicant to undertake this specific scheme - By this incentive, the State Government is incentivising the applicant to undertake this scheme and achieve success, for the incentive is not absolute but relative depending on the performance of the applicant - As the incentive is linked to the Amount of Loan disbursed in rupees, the yardstick for incentivising the applicant is based on applicants willingness and performance to achieve targets, which in subject case is the amounts of loan disbursed, the highest incentive being 4% for more than 100 Crore rupees disbursed and the minimum being 2% for upto 10 crore rupees of loan disbursed - Applicant's business performance of loan disbursement is the sole criteria for receiving subject incentive - The said incentive @4% on the disbursed loan amount to the applicant has not lessened the burden of the customers, for the customers of the loan are still required to pay their share of 2% interest on the loan amount - This incentive amount falls under the meaning of consideration and income received by the applicant - In GST law, no special treatment is to be given to incentives given by Government - Government is treated as any other 'person' in GST law, but for relevant Notifications issued - Held that the said income of incentive of 4% received by the applicant is consideration to the applicant - Such incentive cannot be equated as subsidy granted by the Government - Further held that subsidy is granted in public interest, related with welfare of the public or provided to a person/business by Governments, to rationalise the cost impact directly/indirectly on the public - Said incentive has no such bearing on reducing the interest burden of 2% on the customers of the applicant, but incentivising the applicant for its performance of business in said scheme - In the present case, incentive amount is received by the applicant and the applicant itself is benefitted, said benefit of incentive is not shared with its customers - The incentive amount is not passed on to the customer who are getting loan - Therefore, subject incentive amount is liable to GST - The said Incentive is not subsidy and does not merit exclusion from valuation under section 15(2)(e) CGST Act - The subject supply is covered at section 7(1)(a) CGST Act and not covered at section 7(2) CGST Act: AAR
- Application disposed of: AAR
2021-TIOL-202-AAR-GST
Sadanand Manpower Service
GST - Labour supply/supply of manpower services like Drivers, peons, housekeeping, data entry operators and other clerical staff to Government Departments is covered under Service Accounting Code (SAC) 9985 and attracts tax at the rate of 18% since these services are not provided by way of any activity in relation to any function entrusted to a Panchayat under article 243G of the Constitution or in relation to any function entrusted to a Municipality under article 243W of the Constitution: AAR
- Application disposed of: AAR
2021-TIOL-201-AAR-GST
Starworth Infrastructure And Construction Ltd
GST - Construction service provided by the applicant to M/s. Provident Housing Limited under the projects "Provident Neora and Provident Capella" and to M/s. Puravankara Limited under the project "Provident Parksquare" are liable to tax at the rate of 12% as provided in Sl.No.3-Item (v)-sub item (da) of Notification No. 11/2017-CTR if the projects are affordable housing projects and are given the infrastructure status as per notification of Government of India, in Ministry of Finance, Department of Economic Affairs vide F.No. 13/6/2009-INF, dated the 30th March, 2017, else, the services will be liable to tax at the rate of 18% as provided in Sl.No.3-Item (xii) of Notification No. 11/2017-CTR : AAR
- Application disposed of: AAR
2021-TIOL-200-AAR-GST
Premier Sales Prmotion Pvt Ltd
GST - Supply of Vouchers [gift vouchers, cashback vouchers, e-vouchers] are taxable as "goods" and the time of supply would be governed by Section 12(5) of the CGST Act 2017 - Rate of tax is 18% as per Entry No. 453 of Schedule 3 of Notification No. 1/2017-CTR: AAR
- Application disposed of: AAR
2021-TIOL-199-AAR-GST
Inox Air Products Pvt Ltd
GST - SIPCOT had entered into an agreement with India Pistons Limited (IPL) for lease of an area of land in Hosur for a period of 99 years - Applicant INOX had approached IPL for transfer of the leasehold rights for the remainder period of 72 years in respect of part of the property for setting up Air Separation Unit (ASU) for manufacture and supply of Industrial gases.; INOX and IPL entered into a Memorandum of Understanding for transfer of leasehold rights (MOU) - Accordingly, SIPCOT has amended its original lease agreement in order to lease the part property to INOX - IPL has agreed to transfer the leasehold rights in the part property to INOX for a total consideration of Rs.15,00,00,000/- - INOX has stated that IPL has sought an Advance Ruling on whether the transfer of leasehold rights in the part property amounts to supply and accordingly whether GST would be leviable on the consideration receivable from INOX; that in the event where the authority rules that the transfer of leasehold rights to INOX is a supply and leviable to GST, they require to understand the admissibility of Input Tax Credit (ITC) of GST chargeable on such supply.
Held: Service received from IPL is towards facilitating the lease acquisition of the land by the applicant, therefore, the ASU, even if it qualifies as a 'Plant and Machinery', the 'land' leased is not a 'Plant and Machinery' because of the explicit, specific exclusion provided in the GST Law in the Explanation to 'Plant and Machinery' - The services availed from IPL is in relation to acquiring lease of the land - By the specific exclusion in the definition of 'Plant and Machinery' as "land" stands excluded from 'Plant and Machinery', the services availed and utilized for acquiring such land on lease is restricted under Section 17(5)(d) of the CGST Act 2017, though the activity is in the course or furtherance of the business of the applicant - Credit of GST, if payable, on such supply is not eligible as credit to the applicant: AAR
- Application disposed of: AAR
2021-TIOL-198-AAR-GST
TVL Anamallais Engineering Pvt Ltd
GST - Activity of bus body building undertaken on the chassis supplied by customers amounts to supply of service as per Schedule II, clause 3 of CGST Act 2017 - Service is classifiable under SAC 998881 and applicable rate will be CGST @ 9% and SGST @ 9% as per entry no.26 of Notification no. 11/2017-CTR and corresponding State notification: AAR
- Application disposed of: AAR
