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2023-TIOL-40-AAR-GST
Zuha Leather Pvt Ltd
GST - Applicant is basically a tanner carrying out the activity of tanning process on hides and skins - Issue arises for consideration is as to whether the activity of applicant, i.e. treatment or processing undertaken on goods owned by other person falls within the purview of Heading 9988 and applicable tax rate for the same - The basic issue before this authority is whether the activity or process carried out by applicant on the goods received from its client, amounts to job work or it is supply of services (being activity of tanning) and goods (being tanning chemicals transferred in the course of tanning) to be regarded as composite supply - It is clear that Applicant is the job worker, who has to process the raw hide supplied by Principal and after tanning process (job work) return the same to Principal - In course of tanning process, applicant is using some tanning chemicals which are consumed in process - It is not unusual for a job worker to add some inputs to aid his job work process - But, it still remains a job working process and it is pertinent to note that both the raw material (hides & skins) and finished product (finished leather) fall in Chapter 41 - Also, it cannot be treated as composite supply - Therefore, the activity of Applicant in processing (tanning), the raw hide owned by the Principal into finished leather falls within the purview of job work - Further, CBIC vide Circular 126/45/2019-GST [F. NO. 354/150/2019-TRU] , clarified and distinguished that item (id) and (iv) in the above heading 9988, as it pertains to goods of unregistered persons - Hence, if activity of Applicant is a service by way of treatment or processing undertaken by a person on goods belonging to another registered person, it is rightly classifiable as processing of hides, skins and leather falling under Chapter 41 in First Schedule to Customs Tariff Act, 1975 (51 of 1975) and as per (i)(e) (para 6.7) and applicable CGST rate is 2.5% and applicable SGST rate is 2.5% - However, if activity of Applicant is undertaken on physical inputs (goods) which are owned by persons other than those registered under the CGST Act, then it falls within entry at item (iv) and applicable CGST rate is 9% and applicable SGST rate is 9% - The activity of applicant is a service by way of treatment or processing undertaken on hides, skins and leather falling under Chapter 41 in First Schedule to Customs Tariff Act, 1975 (51 of 1975) belonging to another person : AAR
- Application disposed of: AAR
2023-TIOL-39-AAR-GST
D M Net Technologies
GST - The applicant is engaged in providing specified educational services in the field of Information Systems Education - Vide their letter dated 05.09.2022, applicant has requested to permit him to withdraw the appeal filed for determination - The application filed by the applicant for advance ruling is dismissed as withdrawn: AAR
- Application dismissed: AAR
2023-TIOL-38-AAR-GST
HRPL Restaurants Pvt Ltd
GST - The applicant is engaged in restaurant business and formal of outlets - The ice cream division has been sold - The present outlets are broadly of three types, wherein applicant is supplying food which is prepared and cooked in the restaurant/eatery in addition to supplying the ice creams, which are not prepared/produced by them - The main question to be decided is whether the supply of ice cream from any of the outlets of applicant, can be considered as supply of 'restaurant services' or not - The supply of ice cream from the outlets of applicant cannot be considered as supply of 'restaurant services' - The readily available ice creams [not prepared in their outlets] sold over the counter is supply of goods - However, an ice cream when ordered and supplied along with cooked or prepared food, through their outlets would assume the character of composite supply, wherein the prepared food being the principal supply and hence qualifies as 'restaurant services' - The supply of ice cream from the outlets of applicant is not classified as 'restaurant services' - However, the composite supply, classifiable under 'restaurant service' would be leviable to GST @ 5% with no input tax credit as per Sr. No. 7( ii) of notification No. 11/2017-CT (Rate) as amended vide notification No. 20/2019-CT (Rate) - The supply of only ice cream [not prepared in their outlets and which is readily available] from any of the outlets of applicants is held to be akin to supply of ice cream from ice cream parlour, leviable to GST % 18%: AAR
- Application disposed of: AAR
2023-TIOL-37-AAR-GST
Madurai Famous Jigarthanda LLP
GST - The issue arises is whether the product manufactured and claimed by applicant as pasteurized milk and milk cream named as `Jigarthanda' is classifiable as "Goods", if goods, whether it is exempted or taxable and its HSN and rate of tax - Jigarthanda manufactured by using various ingredients or inputs is in the form of semi-solid form, as stated by applicant, satisfies the definition of "goods" and accordingly, "Jigarthanda" is goods - Jigarthanda, which qualify as goods merit classification under HSN 2202 99 30, is neither finding place in Schedule III of CGST Act, 2017 as non-supply nor exempted under Notfn 2/2017 CTR - Therefore, it is a taxable goods covered under Notfn 1/2017 CTR vide serial No.50 of Schedule II as "Beverages containing milk" attracting CGST of 6% and attracting SGST of 6% for intra state supply - It attracts 12% IGST vide serial No.50 of Schedule II of Notification No .1/2017 Integrated Tax (Rate) for interstate supply: AAR
- Application disposed of: AAR
2023-TIOL-36-AAR-GST
Royal Coach Builders
GST - The Applicant is engaged in rendering services of constructing bus body over chassis supplied by customers according to their requirements - They sought ruling on questions as to whether the activity of Bus Body Building on chassis supplied by customer on job work basis is a supply of service or supply of goods, if it is supply of Service, what is applicable rate of GST and its SAC code and if it is supply of goods, what is applicable rate of GST and its HSN - It is observed that bus body is fabricated and mounted by Applicant on the chassis owned and supplied by customer - After completing work, it is delivered back to customer, charging a lump sum amount as Job Work Charges - The ownership of chassis remains with their customers and will not be transferred to applicant at any point of time - The consideration is received only towards fabrication services besides some materials involved in course of fabrication - Ministry of Finance has issued clarification in Circular No.52/26/2018 , regarding applicability of GST on various goods and services - Instant case falls in the situation spelt in Para 12.2 (b) of the Circular and therefore Bus body building on the chassis supplied by customer is a service under SAC 998881 - Motor Vehicle and trailer manufacturing services and 18% GST as applicable will be charged accordingly - Activity undertaken by Applicant for bus body building on chassis supplied by the customer is to be classified as job work - As per Schedule II (3) of CGST Act 2017 , the said activity bus body building on the chassis belonging to the customer by the applicant is supply of services - The activity of bus body building undertaken on the chassis supplied by the customers to the Applicant amounts to supply of service as per Schedule II clause 3 of CGST Act 2017 - The service rendered is classified under SAC 998881 and the applicable rate will be 18% (CGST @ 9 % and SGST @ 9 %): AAR
- Application disposed of: AAR
2023-TIOL-35-AAR-GST
Suez India Pvt Ltd
GST - The issue is about "determination of liability to pay tax on any goods or services or both" and hence is admissible under Section 97(2)(e) of CGST Act, 2017 - Applicant have entered into a contract agreement with Bengaluru Water Supply and Sewerage Board (BWSSB) on 21.04.2022 for work of design, upgradation and rehabilitation of existing 248 MLD capacity used water treatment plant at K & C Valley, Bengaluru - Applicant wants to know whether services provided to BWSSB would be considered as a service provided to a governmental authority - Now there is a need to examine whether BWSSB is a Governmental Authority or Government Entity - Notfn 11/2017-Central Tax (Rate) as amended vide Notfn 31/2017-CentralTax (Rate) defines Governmental Authority and Government Entity - Since BWSSB is set up by the Act of State Legislature to carry out any function entrusted to a Municipality under article 243W of Constitution, same can be considered as Governmental Authority - Applicant wants to know applicable GST rate on supply of works contracts services in relation to sewage treatment made to BWSSB, on or after 1st Jan 2022 - For this Authority invite reference to entry No.3(iii) of Notfn 11/2017 Central Tax (Rate) as amended vide Notfn 20/2017-Central Tax (Rate) - Since the Applicant is a Governmental Authority who has entered into contract with BWSSB for upgradation and rehabilitation of water treatment plant, same may be covered under entry 3(iii) which is exigible to GST at 12% - Further, Notfn 22/2021-Central Tax (Rate) was issued in supersession of Notfn 15/2021-Central Tax (Rate) which brought amendment to Notfn 11/2017-Central Tax (Rate) - Again, Entry No.3 of Notfn 11/2017 Central Tax (Rate) was amended vide Notfn 3/2022-Central Tax (Rate) - Thus the entry 3(iii) of Notfn 11/2017 Central Tax (Rate) itself was omitted and now the works contact services supplied by Applicant to BWSSB is covered under entry No.3(xii) of same Notification - Thus the works contract services provided by Applicant to BWSSB are covered under this entry and same is exigible to GST at 18% - The services provided to Bengaluru Water Supply and Sewerage Board (BWSSB) would be considered as a service provided to a Governmental authority under GST - Works contracts services supplied by Applicant in relation to sewage treatment to Bengaluru Water Supply and Sewerage Board, on or after 1st Jan 2022 is exigible to GST at 18% (CGST @ 9% and SGST@9%): AAR
- Application disposed of: AAR |
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