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2022-TIOL-77-AAR-GST
Gurkripa Career Education Pvt Ltd
GST - Applicant is engaged in imparting commercial coaching service in the field of science stream to the students inspiring to clear medical and engineering entrance examinations like NEET, JEE etc. - Applicant intends to provide hostel facility not only to the students who are enrolled with applicant for coaching service but also to the students of nearby schools/educational institutions - A pplicant intends to provide basic residential facilities which include well-maintained furnished residence, Light, water, food etc., and in consideration the hostel intends to charge a nominal lump-sum fee of Rs. 1,02,000/- per year per student i.e., Rs. 279/- (Approx.) per day - A pplicant is of the understanding that services of hostel facility to the students wherein consideration charged from student much less than Rs. 1000/- per day per student, is covered by the exemption as Notified in Notification No.12/2017-CTR, Entry No. 14 - A ruling is sought in this regard. Held : In order to examine the applicability of exemption/ taxability, there should be documentary evidences which support the contention of the applicant - In the instant case, documentary evidence like rent/lease agreement of the premises and License from the Local authority in respect of Hostel are keenly required - Further, Brochure mentioning thereunder the facilities / services which are to be provided to the occupants of the said Hostel and Break up of fees to be charged f rom the occupants is also required to decide whether it is accommodation & lodging service or otherwise - Moreover, the services to be supplied in the present case are more than two but in the absence of Brochure of Hostel facilities, Break-up of fees in respect of facilities/services to be provided, License from the Local Authority, Details of rooms occupancy and Rent/ lease Agreement etc; Authority is not in a position to decide whether the accommodation services along with allied services like service of Light, water, food etc. are only to be provided by Hostel or other services will be there - In the absence of above required documents/information, Authority is not in position to decide whether the said supply is mixed or composite supply - Thus, in the absence of supporting documentary evidence, there is no question of discussing the exemption under Sr. No. 14 of the of the Notification No. 12/2017-CTR - Thus, with the limited material facts submitted by the applicant, with no Brochure of Hostel facilities, Break-up of fees in respect of facilities/services to be provided, License from the Local Authority and Rent Agreement etc., Authority finds it prudent to refrain from pronouncing a Ruling - Therefore, no ruling is extended on the clarifications sought by applicant: AAR
- Application rejected: AAR
2022-TIOL-76-AAR-GST
AS Bharat Refinery India Pvt Ltd
GST - Applicant is engaged in the manufacture of Fortified Rice Kernels - Premix (FRK) and classifying the same under heading no. 1904 9090 - They submit that vide notification 11/2021-CTR dated 30.09.2021 (w.e.f 01.10.2021), the principal exemption notification 39/2017-CTR was amended and whereby the rate of GST on FRK was reduced from 18% to 5% when supplied for ICDS or similar schemes of the Central/State government ; furthermore, they have been instructed vide letters dated 03.01.2022 and 13.01.2022 by the Government of Uttarakhand to supply FRK to 79 listed rice mills for supply under the PDS scheme - Applicant seeks a ruling as to whether they are eligible for concessional rate of tax of 5% w.e.f 01.10.2021. Held: In the instant case, as per the applicant's own admission they have to supply the FRK to the Rice Millers, enlisted in the letter dated 03.01.2022 and not to the agency/agencies entrusted by the Government for free distribution to the economically weaker sections of the society - D esignated Rice Millers have been requisitioned for supply of the fortified rice and the applicant has neither been supplying the said goods for free distribution to the economically weaker sections of the society under a programme duly approved by the Central Government or the State Government concerned nor are they into final supply of said goods in terms of Notification No. 39/2017-C.T. (Rate) dated 18.10.2017 - Applicant is, therefore, not eligible for concessional rate of tax of 5% under the impugned notification: AAR
- Application disposed of: AAR
2022-TIOL-75-AAR-GST
Coral Manufacturing Works India Pvt Ltd
GST - Applicant procures services of Works Contract of Construction of 'Integrated Factory Premises' designed to take the load of various 'Plant and Machinery' to be housed for operations - The incremental foundations made is not the 'foundation with which the Plant and Machinery are fixed to earth', which is held as eligible along with the 'Plant and Machinery' as per the Explanation under Section 17 of the GST Act - Also, the applicant has not established that they individually procure steel, cement and other consumables for the works executed by their suppliers, thus the invoices for such goods have not been established to be in the name of the applicant - Therefore, the credit of steel, cement and other consumables even in proportion to the incremental volume of the earth foundation, side walls, beams, etc are not available as credit to the applicant – Eligibility to credit of GST paid on structures, Pre cast, reinforced concrete beams, poles etc. (purchased as it is) and other capital goods are not answered as the question is not substantiated with factual documents: AAR
- Application disposed of: AAR
2022-TIOL-31-NAA-GST
MYK Laticrete India Pvt Ltd
GST - Anti-Profiteering - The applicants had filed a complaint against the Respondent-company in respect of a units purchased by the applicants in a project being developed by the Respondent - The applicant alleged that the respondent had not passed on the benefit of GST rate reduction by way of commensurate reduction in the price of the flats - The complaint was forwarded to the Standing Committee on Anti Profiteering, which further forwarded it to the DGAP - The DGAP computed the amount of tax payable by the respondent and also computed the amount of ITC that was supposed to be passed on. Held - It is evident from narration of facts that Respondent has denied the benefit of ITC to the buyers of flats in contravention of Section 171(1) of the CGST Act - Thus the respondent has comitted offence u/s 171(3A) of the Act - Hence the respondent is liable to face penalty for the same - However, since the penalty provisions u/s 171(3A) came into effect w.e.f. 01.07.2020, whereas the alleged violation occurred between 01.07.2017 to 31.12.2018, thereby the penalty cannot be imposed on the respondent retrospectively - The authorities concerned are directed to ensure compliance with this order - It may be ensured that benefit of ITC be passed on to each customer along with interest @ 18% as per Rule 133(3)(b) of the CGST Rules: NAA
- Application disposed of: NAPA
2022-TIOL-25-AAAR-GST
Healersark Resources Pvt Ltd
GST - M/s. Apollo Med Skills Limited (AMSL) is into training youth in various Healthcare related vocational programs by providing up-skilling courses for Doctors, Nursing Professionals and skilling courses for Paramedical and Hospital Support Staff - In this regard, AMSL has engaged the applicant/appellant to provide the boarding, lodging facilities and such other agreed services, to AMSL in line with the SOP given by the Government of India for the implementation and furtherance of its projects under DDU-GKY - Applicant had, therefore, sought a ruling from the AAR regarding the applicable GST SAC code and the GST rate for the supplies made by them to M/s. Apollo Med Skills Limited (AMSL); whether it is a composite or a mixed supply and whether supply is exempted in terms of notification 12/2017-CTR - As there was a difference of opinion between the Members constituting the AAR, the matter was placed for decision before the Appellate Authority as per the provisions under Section 98(5) of the Act. Held: Scope, language and the terms of the agreement establishes that the applicant is to extend a bouquet of services required from them as 'Hospitality Services' together and in conjunction with each other and, therefore, is a naturally bundled 'composite supply' of service, with 'Provision of accommodation' [SAC 9963] as the principal service - In the case at hand, the per day equivalent consideration for the composite supply of Hospitality services when extended in Chennai Region is Rs. 300/- and for regions out of Chennai, the per day equivalent consideration is Rs. 250/- which are below one thousand rupees stipulated for per day, therefore, the applicant is eligible for the exemption entry under Sl. No. 14 of Notification No. 12/2017-C.T.(Rate) dated 28.06.2017 - Matter disposed of: AAAR
- Matter disposed of: AAAR |
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