2022-TIOL-NEWS-013 Dated: Saturday ,January 15, 2022

2022-TIOL-15-AAR-GST

Suez India Pvt Ltd

GST - Applicant entered into a performance based contract for water loss management with Kolkata Municipal Corporation (KMC) which includes construction of water distribution networks and operation & maintenance - Applicant submits that the contract was awarded to him for a single lump sum amount, however, for the contract signing purposes, KMC shared two separate contracts for DB phase and O&M phase along with the Letter of Award - Applicant, therefore, wishes to know as to whether such an agreement be considered as divisible supplies or a single contract under the GST law; the taxability thereof.

Held: Contract for water loss management made by the applicant with Kolkata Municipal Corporation which includes construction of water distribution networks and operation & maintenance shall be treated as an indivisible single contract and qualifies as works contract as defined under clause (119) of section 2 of the GST Act - Such composite supply of works contract gets covered under entry serial number 3(iii) of the Notification No. 20/2017-Central Tax (Rate) dated 22.08.2017 and, therefore, shall attract tax @ 12% w.e.f. 22.08.2017 - For the period from 01.07.2017 to 21.08.2017, the supply is taxable @ 18% vide entry serial number 3(ii) of the Notification No. 11/2017-CTR: AAR

- Application disposed of: AAR

2022-TIOL-14-AAR-GST

Shiv Flour Mill

GST - Applicant is engaged in the business of selling flour (atta) and providing service of job work in the nature of crushing food grains supplied and owned by Food & Supplies Department, Government of West Bengal - Applicant has entered into an agreement with the District Controller of Food and Supplies, Kolkata, Government of West Bengal for supply of fortified Wholemeal Atta - According to the said agreement, the State Govt. (Food & Supplies Department) sends the whole, unpolished food grain to the applicant for crushing and processing it into flour - The applicant returns the flour(atta) packed in the manner as the State Govt. requires by fortifying the crushed grain with the vitamin which is then distributed through the Public Distribution System (PDS) by the State Govt. (Foods & Supplies Department) - Applicant seeks to know as to Whether the instant composite supply of service by way of milling of food grains into flour to Food & Supplies Department, Govt. of West Bengal for distribution of such flour under Public Distribution System is eligible for exemption under entry No. 3A of Notification No. 12/2017-CTR & what shall be rate of tax on such milling, if it does not fall under Entry no. 3A.

Value of supply shall be the consideration in money and shall also include all the components towards non-cash consideration - This composite supply of services by way of milling of food grains into flour (atta) to Food & Supplies Department, Govt. of West Bengal for distribution of such flour under Public Distribution System is eligible for exemption under entry serial no. 3A of the Notification No. 12/2017-Central Tax (Rate) dated 28.06.2017 only when the value of goods involved in such composite supply does not exceed 25% of the value of supply - If the value of goods involved in such composite supply exceeds 25% of the value of supply, the supply shall attract tax @ 5% vide entry serial No. 26 of the Notification No. 11/2017-CTR: AAR

- Application disposed of: AAR

2022-TIOL-13-AAR-GST

Maa Laxmi Enterprise

Held : Activities undertaken by the applicant for milling of wheat into wheat flour, along with fortification and supplied upon packing of the same qualify the definition of ‘composite supply' under clause (30) of section 2 of the GST Act where the supply of services by way of milling is the principal supply - Instant composite supply made by the applicant is found to be in relation to any function entrusted to a Panchayat under article 243G of the Constitution - Value of supply shall be the consideration in money and shall also include all the components towards non-cash consideration - This composite supply of services by way of milling of food grains into flour (atta) to Food & Supplies Department, Govt. of West Bengal for distribution of such flour under Public Distribution System is eligible for exemption under entry serial no. 3A of the Notification No. 12/2017-Central Tax (Rate) dated 28.06.2017 only when the value of goods involved in such composite supply does not exceed 25% of the value of supply - If the value of goods involved in such composite supply exceeds 25% of the value of supply, the supply shall attract tax @ 5% vide entry serial No. 26 of the Notification No. 11/2017-CTR: AAR

- Application disposed of: AAR

2022-TIOL-12-AAR-GST

Kayal Infra

GST - Project which is currently under construction by the applicant is a Residential Real Estate Project (RREP) as defined under Notification No. 11/2017-CTR as amended vide Notification No. 03/2019-CTR - Apartments in the said project qualify as affordable residential apartment as defined under the aforesaid notification - GST rate to be charged from customers for sale of flats in the said project, except where the entire consideration has been received after issuance of completion certificate, where required, by the competent authority or after its first occupation, whichever is earlier, shall be 1.5% (0.75% CGST and 0.75% SGST), as further reduced by 1/3rd (abatement) to factor in the value of land: AAR

- Application disposed of: AAR

2022-TIOL-51-HC-AHM-GST

Vimal Yashwantgiri Goswami Vs State of Gujarat

GST - Provisional attachment - The orders of provisional attachment under challenge could be said to have been outlived statutory right considering the fact that the orders impugned are dated 23.07.2019 and it would cease to operate on expiry of period of one year as prescribed under Section 83 - Same is the position with regard to Rule 86A of CGST Rules, 2017 , more particularly, Clause 3 - The attention of this Court is drawn to draft amendment, whereby, writ-applicant has referred to communication dated 28.07.2020 as received from respondent, who seems to have passed the fresh order of attachment - On bare perusal of said order dated 24.07.2020 produced and order dated 27.07.2020, even those orders have outlived their statutory life in view of Section 83 of CGST Act as well as Rule 86A(3) of CGST Rules, 2017 - As on date nothing further is required to be adjudicated - Thus, as on date, it could be said that there are no orders of attachment of all four current accounts running in the name of writ-applicant maintained with respective banks as well as there is no attachment of Input Tax Credit - If Department wants to proceed further in any manner, it is always open to do so in accordance with law - Writ applicant pointed out that the laptop and a mobile phone of his client was also seized by authorities of Department - After the goods are seized under sub-section (2) to Section 67 and no notice in respect thereof is issued within six months of seizure, authority concerned is obliged to return to person from whose possession such goods were seized - Undisputably, no notice has been issued and the time period of six months has also expired - Authority concerned shall look into this aspect also so far as the laptop and mobile phone is concerned - This order is without prejudice to the rights of department to initiate any further action in accordance with law: HC

- Writ application disposed of: GUJARAT HIGH COURT