2023-TIOL-49-AAR-GST
Seetharamnjaneya Dal And Fried Gram Mill
GST - Applicant seeks to know as to w hether the supply of 1kg packing red gram dal in secondary packing in 50 kg bag to the AP State Civil Supplies Corporation Limited, Vijayawada as per the design and label given by the corporation with a prior agreement attracts GST.
Held: The first and foremost condition of taxability is that the commodity should have been a pre-packed commodity which means that the commodity is not packed for any specific known buyer - In the instant case, the applicant is packing the commodity at the behest and at the specific instructions of the buyer, ie., AP State Civil Supplies Corporation Limited - It is clearly evident from the package that the AP State civil have made very clear instruction as to the colour, theme, transparency and the details to be printed on the package - Thus the commodity is not packed for retail sale for any buyer who may purchase at a later point, but it is packaged to a specific buyer - Thus the first and foremost condition of taxability is not satisfied - Hence there is no question of taxability of the commodity in the instant case, therefore, the discussion as primary/secondary packaging or Institutional supply is nothing but infructuous - Question is, therefore, answered in the negative: AAR
- Application disposed of: AAR
2023-TIOL-48-AAR-GST
Brandlx Apparel India Pvt Ltd
GST - Factories Act, 1948 stipulates for a canteen facility for a factory with workforce of more than 250 - The applicant's workforce is well over 11000 and, therefore, they are mandated to provide canteen facility - It is seen that the service provider, a third-party, is charging Rs 1538.25 per employee per month which is being paid by the applicant - Out of this amount, Rs 578 is being recovered from the employees through their salaries by the applicant - It is clear that the provision of service of canteen is by the third-party to the applicant and not by the applicant to their employees - As per Section 7 of the CGST ACT, supply includes all forms of supply of goods or services for a consideration by the person in the course or furtherance of business - The applicant is involved in the supply of manufacture of apparel and not in the activity of provision of canteen service - The canteen service is not an output service - In fact, canteen services are being received by the applicant from the third-party providers, therefore, it can be concluded that the provision of canteen facility by the applicant to the employees is not a supply as it is not in the course or furtherance of business - Further, the applicant is merely collecting a part of the canteen expenses from the employee and this does not tantamount to supply as per Section 7 of the CGST and SGST Act - Therefore, the applicant is not liable to pay GST on the recoveries from the employees for the canteen services provided to them: AAR
GST - Transportation services is provided by a third-party to the employees of the applicant - The service provider is charging Rs.2,277 from the applicant per month per employee - The applicant is recovering Rs 350 per employee per month and bearing Rs 1927 on their account - Main business of the applicant is manufacture of apparel and they are not engaged in the business of transportation - The transportation services is not a supply for the applicant made in the course or furtherance of business and the recoveries made by the applicant from their employees does not fall under the definition of supply under Section 7 - Further, the transportation services are being supplies by the third-party to the applicant and they are receivers and not supplier of the same - Therefore, it can be concluded that the GST is not applicable for the recoveries from the employees for the transportation services provided to them: AAR
- Application disposed of: AAR
2023-TIOL-47-AAR-GST
AP Power Development Company Ltd
GST - Liquidated damages collected by the applicant APPDCL from CHETTINAD LOGISTICS PRIVATE LIMITED for non-performing of an act constitutes a Supply as per Section 7 of GST Act - Activity would be covered within chapter head 9997 - 'Other Services' and attracts tax @18%: AAR
- Application disposed of: AAR |
