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GST - Case Laws
Showing 81 to 100 of 154 Records
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2021 (11) TMI 542 - ALLAHABAD HIGH COURT
Revocation of cancellation of registration of petitioner - rejection of registration without fixing any date or time for hearing and without waiting for any reply from the petitioner and the petitioner had not replied to the notice dated 2.1.2021 within the time specified therein - HELD THAT:- Admittedly, the petitioner did not furnish any reply to the show cause notice dated 2.1.2021. However, what is required to be seen is that whether the mandate of section 30 of the Act was complied with by the authority concerned - the show cause notice is required to mention that the petitioner has to furnish a reply to that notice within 7 working days and that his appearance is required before the notice issuing authority on the specified date and time. The notice dated 2.1.2021 that has been enclosed as Annexure-5 to the writ petition reveals that neither the time to file a reply to the notice has been mentioned and neither is the appointed date and time mentioned in the notice. The reason ascribed in the show cause notice dated 2/1/2021 is only that the revocation application is not within the prescribed time. A perusal of the counter affidavit reveals that contents of para-21 of the writ petition have not been replied at all.
There is no consideration of the proviso to sub-section (2) of Section 30 of the Act in the appellate order.
It is evident that in the show cause notice for rejection of the application for revocation of cancellation of registration of the petitioner, neither is the period of days specified to furnish its reply to the notice nor is the appointed date and time for personal hearing mentioned in that notice and this fact has not been rebutted in the counter affidavit. Moreover, no opportunity of hearing was provided to the petitioner/applicant - the mandatory requirement of the proviso to sub-section (2) of Section 30 of the Act has not been complied with. As such the show cause notice dated 2.1.2021 is no show cause notice in the eyes of law.
The subsequent order dated 30.01.2021, rejecting the application for revocation of cancellation, of the authority is questionable - Petition allowed.
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2021 (11) TMI 541 - DISTRICT COURT GURUGRAM
Seeking grant of Bail - allegation against the accused are that few signed and unsigned documents of the said firms were found in his office - active role in commission of crime under Section 132 of CGST Act - HELD THAT:- This court is of considered view that the present accused does not deserves to be released on bail. It is settled preposition of law that economic offences in itself are considered to be gravest offence against the society at large and hence are required to be treated differently in the matter of bail. It seems that the entire community would aggrieved if the economic offenders who ruin the economy of the State are not brought to book as such offences affects the very fabric of democratic governance and probity in public life.
A disregard for the interest of the community can be manifested only at the cost of forfeiting the trust and faith of the community in the system to administer justice in an even handed manner without fear of criticism from the quarters which view white collar crimes with a permissive eye unmindful of the damage done to the national economy and national interest.
This court is of considered view that if accused is released on bail then there are likely chances of him to jump bail - Bail application dismissed.
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2021 (11) TMI 509 - DELHI HIGH COURT
Seeking directions to allow for rectification and to issue forms as per requisition of statutory forms for fourth quarter of the year 2016-17 read with CST rules - seeking to allow the revision of returns for the same period in accordance with the DVAT Act and Rules - HELD THAT:- The present writ petition along with pending application is disposed of with a direction to the Respondents to release Form-C to the Petitioner within two weeks to enable appropriate corrections to be carried out qua the relevant quarters. The Petitioner shall furnish a surety bond to secure the amounts in issue.
Application disposed off.
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2021 (11) TMI 438 - CALCUTTA HIGH COURT
Cancellation of registration under GST - minor defect in the sub-let agreement or not - non-existence of the petitioner at the registered place - HELD THAT:- In view of the facts and circumstances of the case that it is not a case of tax evasion or causing revenue loss to the Government rather petitioner’s activity of carrying on the business which cannot be called illegal is creating revenue for the State as well as in helping the State to solve the problem of unemployment a little bit and such type of drastic action in the facts and circumstances of the case by canceling the registration of the petitioner on such hyper technical ground will not help the State rather it will cause revenue loss to the State as well as aggravate unemployment problem in the State which will be a social problem in the society.
The order of the Appellate Authority dated 25th August, 2021 is set aside, confirming the cancellation of registration of the petitioner for revocation of cancellation of its registration, by directing the State respondent concerned to consider afresh - petition disposed off.
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2021 (11) TMI 437 - ALLAHABAD HIGH COURT
Maintainability of petition - availability of alternative remedy of appeal - reasons for the conclusions drawn, missing in the impugned order - principles of natural justice - HELD THAT:- It has to be accepted in law that the impugned order does not contain reasons. This conclusion is being drawn as unless the complete copy of the order containing the reasons is served on the petitioner/assessee, he may never have any right to challenge the same before any forum including the appellate forum. The fact that the Assessing Officer may have available to it another copy of the same order which may contain reasons therefor, may be of no help to the Revenue Authority as such copy of the order has not been served on the petitioner/assessee. Therefore, it cannot be relied upon to any extent.
The order served on the petitioner and as has been impugned in the writ petition is wholly defective and lacking in vital aspect namely reasons for the conclusions drawn therein - matter remitted to the Assessing Officer who shall now issue a fresh notice to the petitioner and supply all adverse material (relied against the petitioner) alongwith such notice - Petition allowed by way of remand.
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2021 (11) TMI 434 - ANDHRA PRADESH HIGH COURT
Rate of tax - service by way of grant of mining rights - GST on the same minerals on which royalty - HELD THAT:- Since the very issue as to whether GST would be chargeable on minerals on which already royalty has been paid is actively under consideration before a Nine Judges Bench of the Hon’ble Supreme Court, in the present matter, the petitioner has made out a case for interim order.
The matter be listed after disposal of Writ Petition. In the meantime, there shall be stay of the show cause notice dated 07.10.2021 issued to the petitioner, which is impugned in the present writ petition - pleadings be completed.
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2021 (11) TMI 433 - AUTHORITY FOR ADVANCE RULING, KARNATAKA
Classification of goods - rate of tax - various items and equipments which are used in the construction of Poultry Farm on immovable property - HSN code on transferred of poultry farm equipment and others involved execution of works on immovable property - Composite supply or not - input tax credit - HELD THAT:- On perusal of the definitions given for immovable property it has been noticed that prime property under the term of “immovable property” is land or earth. Further permanently fastened or attached to land or benefits to arise out of land are also treated as immovable properties - the applicant transferring all goods and service which are narrated in Para 9.1 falls under the purview of the definition of term “composite supply” as per section 2 (30) of the CGST/KGST Act 2017 means a supply made by a taxable person to a recipient consisting of two or more taxable supplies of goods or services or both, or any combination thereof which are naturally bundled and supplied in conjunction with each other in the ordinary course of business, one of which is a principal supply.
Input tax credit - HELD THAT:- The applicant is constructing poultry farm on immovable property by using above stated input supplies is not eligible to claim Input Tax Credit. As per Section 17 (5) (d), Input Tax Credit shall not be available in respect of goods or services or both received by a taxable person for construction of an immovable property (other than plant or machinery) on his own account including when such goods or services or both are used in the course or furtherance of business - the claim of Input Tax Credit is restricted in terms of Section 17 (2) of the CGST/KGST Act 2017 on goods and service which are used for construction of farm on immovable property.
Since the contract is an EPC contract, the activity carried out by the applicant is a composite supply of works contract as defined in clause 119 of section 2 of Central Goods and Services Tax Act, 2017 i.e., transfer of Poultry farm including equipments, machineries and other items involved in the execution of the said works. Composite supply of works contract on immovable property for the construction of poultry farm is classified under HSN 9954 and rate of tax at the rate of tax @ 18%, as per serial number 3 of item number (ii) of Notification No. 11/2017-Central Tax (Rate) dated 28.06.2017.
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2021 (11) TMI 432 - AUTHORITY FOR ADVANCE RULING, KARNATAKA
Classification of services - exempt services or not - pure services or not - services provided to the Government entities - supply of manpower services to various government and non-government organisations - exemption under Sl.No.3 of N/N. 12/2017 dated 28th June 2017 - HELD THAT:- The applicant is providing manpower services like security guards, housekeeping staff and catering staff. But these manpower 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. Hence provision of such manpower services are liable to tax at 18%.
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2021 (11) TMI 400 - APPELLATE AUTHORITY FOR ADVANCE RULING, GUJARAT
Exemption from GST - educational assessment examination (ASSET) with its variants provided by the applicant to school/educational organization - Sr. No. 66(b)(iv) of the Not. No. 12/2017-CT (rate) dated 28.06.2017 and entry No. 69(b)(iv) of Not. No. 9/2017-Integrated Tax (Rate) dated 28.06.2017 as well as equivalent SGST Notification - HELD THAT:- As per Entry at Sl. No. 66(b)(iv) of Notification No. 12/2017-Central Tax (Rate), ‘services provided to an educational institution, by way of, services relating to admission to, or conduct of examination by, such institution’ is exempted from GST. The services being provided by the applicant are admittedly not relating to admission to educational institution. Therefore, it needs to be examined whether the services being provided by the applicant are ‘services provided to an educational institution, by way of services relating to conduct of examination by such institution’.
It appears from the entire scheme of the ASSET that the schools have the minimal role in it. In the terms and conditions attached with the School Summary Form (EB / ARO) 2019 submitted by the applicant, one of the conditions is that, “Fees from the students should be charged as per the offer availed by your school”. It therefore appears that the schools are required to collect the fees for ASSET from the students, as determined by the applicant and remit the same to the applicant. As mentioned in the School Summary Form (EB / ARO) 2019, it appears that the schools are offered 10% Discount towards Administration cost - It is therefore evident that the schools are not conducting the ASSET, rather the schools are facilitating the applicant to conduct ASSET for which the schools get some amount towards administration cost.
Whether the ASSET can be said to be conducted by schools, even if it is used to evaluate the performance of students for giving internal marks by the schools? - HELD THAT:- The schools may find ASSET to be a good tool to evaluate students’ level of understanding of different subjects and may also find the detailed reports given by the applicant to be useful for devising future course of action by the schools. Therefore, schools may enter into agreement with the applicant with a condition that all students in a class would take ASSET. The condition of the agreement only leads to a conclusion that unless the school agrees to take ASSET for all the students in a class, the applicant would not enter into a contract with that school to conduct ASSET. However, such condition in an agreement cannot change the nature of ASSET and it will not make ASSET an examination conducted by the schools.
ASSET being held by the applicant cannot be said to be service provided to schools, much less services relating to conduct of examination by such schools. Therefore, exemption from payment of Goods and Services Tax, as provided under Entry at Sl. No. 66(b)(iv) of Notification No. 12/2017-Central Tax (Rate) dated 28.06.2017, as amended and corresponding Notification No. 12/2017-State Tax (Rate) dated 30.06.2017, as amended, is not available to ASSET - Appeal allowed.
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2021 (11) TMI 399 - AUTHORITY FOR ADVANCE RULING, MAHARASHTRA
Supply of goods or services or both - Construction of building on the plot allotted by MHADA - co-operative housing society registered under the Maharashtra State Co-operative Societies Act, 1960 - ITC on input and inputs services for repairs, renovations & rehabilitation works carried out by the Applicant - HELD THAT:- A housing society is a collective body of persons, who stay in a residential society and the collective body, supplies certain services to its members, like collecting statutory dues to be remitted to statutory authorities, or maintenance of the building, etc. As per section 2(17)(e) of the CGST Act, 2017 provision by a club, association, society, or any such body (for a subscription or any other consideration) of the facilities or benefits to its members is deemed to be a business. Thus, a housing society may be seen to be providing club and association services to its members but does not provide works contract service to its members.
The housing society i.e. the applicant in the subject case, is making provisions of the facilities/benefits to its members and is not providing any works contract services to its members and therefore the applicant is debarred from taking Input Tax Credit under the provisions of Section 17 (5) (c) of the CGST Act, 2017.
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2021 (11) TMI 398 - AUTHORITY FOR ADVANCE RULING, MAHARASHTRA
Supply of service or not - recovery of an amount towards Top-up and parental insurance premium from the employees - Section 7 of the Central Goods & Service Tax Act, 2017 - HELD THAT:- The term “business” broadly means any trade, commerce, manufacture, profession, vocation, adventure, wager or any other similar activity whether or not it is for pecuniary benefits. Any activity ancillary or incidental to these activities are also covered as business. It has also been provided that any activity or transaction falling in above categories would be business whether or not there is volume, frequency, continuity or regularity in transactions.
As per the applicant, providing of Top Up Insurance/Parental Insurance is not mandatory under any law for the time being in force. Also, providing / not-providing of the Top Up Insurance/Parental Insurance is not going to affect the business of the Applicant in any way. Further, the applicant is not engaged in providing insurance service - The applicant is not taken input tax credit of the GST paid to the Insurance Company. Non-providing of Top Up Insurance/Parental Insurance coverage will not affect applicant's business by any way. Therefore, activity of recovery of the cost of insurance premium cannot be treated as an activity done in the course of business or for the furtherance of business.
The activity undertaken by the applicant like providing of mediclaim policy for the employees and their parents (parents of the employees) through the insurance company neither satisfies conditions of section 7 to be held as “supply of service” (in the instant case, insurance service) nor is it covered under the term “business” of section 2(17) of CGST ACT 2017. Hence, we find that the applicant is not rendering any services of health insurance to their employees' parent and; hence, there is no supply of insurance services in the instant case of transaction between employer and employee.
Thus, the recovery of the Top Up Insurance/Parental Insurance Premium from employees does not amounts to “supply of service” under Section 7 of the Central Goods and Service Tax Act, 2017.
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2021 (11) TMI 397 - AUTHORITY FOR ADVANCE RULING, MAHARASHTRA
Requirement to obtain registration under the Maharashtra Goods and Service Tax Act, 2017 - charitable activities or not - GST on the amounts received in the form of Donation / Grants from various entities including Central Government and State Government - whether the activities undertaken by the applicant are covered under the definition of charitable activities or not? - HELD THAT:- The applicant has nowhere mentioned that their activity particularly pertains to advancement of educational programmes or skill development only to abandoned, orphaned or homeless children. They also perform other activities for the homeless children such as shelter, guidance, clothing, food and health. We are bound by the definition of the term ‘charitable activities’ as defined under the above said notification and are of the opinion that the applicant is not performing ‘charitable activities’, strictly according to the definition.
Further the supply of services by the applicant to destitute women who are litigating divorce or are homeless or are victim of domestic violence also are not covered under the definition of “charitable activities” - the applicant does not satisfy the conditions mentioned at Sr.No. 1 of Notification No. 12/2017 dated 28-06-2017 which provides exemption from tax to Services supplied by an entity registered under Section 12AA of the Income-Tax Act, 1961 (43 of 1961) by way of charitable activities and hence the supply undertaken by the applicant is not exempt on this count - Since the activities undertaken by the applicant do not conform strictly to the definition of a ‘charitable activity, the applicant shall obtain registration under GST Act.
If the activity is held to be taxable then, whether the applicant is liable to pay GST on amounts received as Donation/Grants from various entities including Central Government and State Government? - HELD THAT:- It may be noticed that there is no reference or mention of any business activity of the donor which otherwise would have got advertised. Thus where all the three conditions are satisfied namely the gift or donation is made to a charitable organization, the payment has the character of gift or donation and the purpose is philanthropic (i.e. it leads to no commercial gain) and not advertisement, GST is not leviable.
If the applicant is liable to pay GST on the amounts received in the form of Donation / Grants from various entities including Central Government and State Government, what will be the rate at which the GST would be charged? - HELD THAT:- The applicant provides shelter, food, and medical facilities, clothing etc., to such destitute women mentioned above and also to rape victims. The applicant represents them before legal forums, including lodging FIR at police stations against the culprits and also arranges for counselling them through expert counsellors to bring them out of the trauma and help them to lead normal life - SAC 9993 covers Human Health and Social Care Services. From the submissions made by the applicant, in respect of destitute women it is seen that the applicant provides social services along with provision of accommodation. These types of services provided by the applicant are covered under SAC 999334.
The subject services supplied by the applicant are covered under SAC 9993 and attract GST @18% (CGST 9% and SGST/UTGST 9%/IGST 18%) as per Notification No. 11/2017 - C.T. (R) dated 28.06.2017 as amended.
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2021 (11) TMI 396 - AUTHORITY FOR ADVANCE RULING, MAHARASHTRA
Educational Institution or not - Charitable Society having the main object and factually engaged in imparting Medical Education - fees and other charges received from students and recoupment charges received from patients (who is an essential clinical material for education laboratory) would constitute as “outward supply” or not - cost of Medicines and Consumables recovered from OPD patients along with nominal charges collected for Diagnosing by the pathological investigations - nominal charges received from patients (who is an essential clinical materials for education laboratory) towards an “Unparallel Health Insurance Scheme” - nominal amount received for making space available for essential facilities needed by the students and staffs such as Banking, Parking, and Refreshment which are support activities for attainment of main activities.
Whether the applicant, a Charitable Society having the main object and factually engaged in imparting Medical Education, satisfying all the criteria of “Educational Institution', can be said to be engaged in the business so as to cast an obligation upon it to comply with the provisions of Central Goods and Service Tax Act, 2017 and Maharashtra Goods and Service Tax Act, 2017 in totality? - HELD THAT:- The activities of the applicant which includes medical education services are covered under the scope of the term “business”. In fact, Education Services are classified under Service and Accounting Code (SAC) 9992 and considered to be a supply of services. Since the applicant's supply of medical education services are also considered to be business there is definitely an obligation cast upon it to comply with the provisions of CGST Act, 2017 and the MGST Act, 2017 - with only respect to the medical education services, as is asked in the Question, the applicant may not comply with the provisions of CGST Act, 2017 and the MGST Act, 2017, since the applicant being an educational institution, is providing medical education services as a part of a curriculum for obtaining a qualification recognized by any law (in this case the qualification is recognized by the Nagpur University) for the time being in force the said supply would be exempt under the GST Laws (Sr. No. 66 of Notification No. 12/2017-Central Tax (Rate) dated 28.06.2017.
Whether the applicant, a Charitable Society having the main object and factually engaged in imparting Medical Education, satisfying all the criteria of “Educational Institution” is liable for registration under the provisions of section 22 of the Central Goods and Service Tax Act, 2017 and Maharashtra Goods and Service Tax Act, 2017 or it can remain outside the preview of registration in view of the provisions of section 23 of the said act as there is no Taxable supply? - HELD THAT:- If the impugned supply of service by way of medical education made by the applicant are the only supplies undertaken by the applicant, in such a case, the applicant is not required to obtain registration under GST law, since the impugned supply is held to be exempt cited supra. However, if the applicant is undertaking or proposes to undertake any taxable supply of goods or services or both (other than described above) (such as renting of property, restaurant service or provision of any other taxable service), then in such a scenario the applicant will be required to obtain GST registration under Section 22 of the GST Act. Since, the applicant is also effecting certain taxable supplies (it is an admitted fact) as discussed in Question No. (iii) and since turnover exceeds the threshold limit, the applicant is liable for registration.
Whether the fees and other charges received from students and recoupment charges received from patients would constitute as “outward supply” as defined in section 2 (83) of the CGST Act, 2017 and MGST Act, 2017 and if yes then whether it will fall in classification entry at Sr. No 66 or the portion of nominal amount received from patients at Sr. No. 74 in terms of Notification 12/2017 C.T.-dt. 28/6/2017? - HELD THAT:- It is noticed that, the first part of the question is whether the fees and other charges received from students and recoupment charges received from patients would constitute as “outward supply” as defined in section 2 (83) of the CGST Act, 2017 and MGST Act, 2017 - the fees and other charges received from students and recoupment charges received from patients would not constitute as “outward supply” as defined in section 2 (83) of the CGST Act, 2017 and MGST Act, 2017, rather, the fees /other charges would, at the most constitute as 'consideration' received against supply, taxable or non-taxable. Hence we do not discuss the classification entry of such fees and other charges received.
The charges recovered from OPD patients are exempt from tax - it is noticed than the applicant has asked Whether the nominal charges received from patients (who is an essential clinical materials for education laboratory) towards an “Unparallel Health Insurance Scheme” to retain their flow at one end for the purpose of imparting medical education as a result to provide them the benefit of concessional rates for investigations and treatment at other end would fall within the meaning of ”supply” eligible for exemption under the category of “educational and/or health care' services”.
It is admitted fact that the applicant provides renting and other services as discussed in this question and collects certain amounts towards provision of said services. What is the object of provision of said service, would not alter the basic nature of provision of any service. Each service or group of services, provided has to be looked into separately with regard to schedule entries, as per the scheme of the act - The service of supply of food to non-in-house-patients and those who are not employees of the hospital, will be taxable as restaurant service at 5% (without ITC) provided the conditions of said schedule entry are fulfilled (entry no.7 of notification no 13/2018 dated 26/7/2018. The applicant did not provide any details regarding what sort of canteen, restaurant or mess they are running. The said service provided to staff and employees as well as to in-house-patients is only exempt service.
Whether the cost of Medicines and Consumables recovered from OPD patients along with nominal charges collected for Diagnosing by the pathological investigations, other investigation such as CT-Scan, MRI, Colour Doppler, Angiography, Gastroscopy, Sonography during the course of diagnosis and treatment of disease would fall within the meaning of “composite supply” qualifying for exemption under the category of “educational and/or health care services? - HELD THAT:- The charges recovered from OPD patients are exempt from tax.
Whether the nominal charges received from patients (who is an essential clinical materials for education laboratory) towards an “Unparallel Health Insurance Scheme” to retain their flow at one end for the purpose of imparting medical education as a result to provide them the benefit of concessional rates for investigations and treatment at other end would fall within the meaning of “supply” eligible for exemption under the category of “educational and/or health care services.”? - HELD THAT:- It is admitted fact that the applicant provides a sort of medical insurance service and collects very small amounts towards premium, what is the object of provision of said service, would not alter the nature of provision of any service, Each service or group of services, provided has to be looked into separately with regard to schedule entries, as per the scheme of the act. The applicant is not holding license from Insurance Regulator to provide the insurance service. So said service would not get covered by the scope of insurance service.
Whether the nominal amount received for making space available for essential facilities needed by the students and staffs such as Banking, Parking, and Refreshment which are support activities for attainment of main activities and further amount received on account of disposal of wastage would fall within the meaning of “supply” qualifying for exemption under the category of “educational and/or health care services? - HELD THAT:- The receipt on account of rent is taxable at 18% as discussed above. It is further clarified that the food supplied to the in-patients as advised by the doctor/nutritionists, as well as supply to employees and staff of the applicant; from such canteen, is a part of composite supply of healthcare and is not taxable. But the other supplies of food by a hospital to patients (not admitted) or their attendants or visitors are taxable at 5%.
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2021 (11) TMI 395 - AUTHORITY FOR ADVANCE RULING, MAHARASHTRA
Levy of GST - reimbursement of expenses such as salaries, rent, training, staff welfare expenses etc. - Rate of GST - Government Entity or not - HELD THAT:- The amounts received by the applicant may be against actual expenses incurred but appear to be given to the applicant in lieu of consultancy services rendered by the applicant to MMRDA. Thus in the subject case, consideration is received by the applicant for supply of services and such consideration is in the form of reimbursement of expenses. Hence, the applicant's claim to treat the amounts received from MMRDA, as 'grants', cannot be agreed upon. Thus the amounts received from MMRDA by the applicant are nothing but consideration received for providing consultancy services.
The consultancy services are in the nature of preparation of transport studies such as comprehensive mobility plan, transit oriented development plan, NMT plan and consultancy services of transaction advisors, etc. and as per the applicant's submissions, at present there is no supply of goods. Thus, the applicant is rendering Pure Services to MMRDA.
Whether 'MMRDA' would be covered under the definition of 'Government Entity' as given in Notification No. 31/2017 dated 13.10.2017? - HELD THAT:- MMRDA is a body established by the Government of Maharashtra under Mumbai Metropolitan Region Development Authority Act, 1974 ('MMRDA Act'). As per the preamble of the Act, the MMRDA has been established for the purpose of planning, coordinating and supervising the proper, orderly and rapid development of the Mumbai Metropolitan Region (MMR); to formulate and execute plans, projects and schemes for the development of the MMR and to provide for matters connected with the purposes - It is clarified that MMRDA is constituted and established by the State Government of Maharashtra with 100% participation by way of Equity or Control to carry out the function entrusted to it by the State Government viz. Preparation of Regional Development Plans , Providing financial assistance for significant regional projects, Providing help to local authorities and their infrastructure projects, coordinating execution of projects and/or schemes in MMR, etc. in the State of Maharashtra and therefore MMRDA is clearly covered under the definition of 'Government Entity' as can be seen from the definition of a 'Government Entity'. Further, Section 46A of the MMRDA Act provides for control by the State Government in regard to its powers and duties.
The applicant is supplying pure services to a Government Entity in relation to any function entrusted to a Panchayat under article 243W of the Constitution and therefore, as per the provisions of Entry No. (3) Of Notification No. 12/2017-CT(R) dated 28.06.2017, the said amounts received by the applicant are not liable to tax.
As per applicant's submissions the only activity being carried out is consultancy services and accordingly it is held that the provisions of Entry No. (3) Of Notification No. 12/2017-CT(R) dated 28.06.2017, is applicable to the present case - as and when the supply as mentioned in para 5.25.1 is undertaken by the applicant, the situation will change and this order will not be applicable in that particular situation/case.
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2021 (11) TMI 394 - AUTHORITY FOR ADVANCE RULINGS, KARNATAKA
Scope of Advance Ruling - Classification of goods or services or both - HSN or SAC - transporting the steel structures fabricated at their Noida premises, to the work site at Karwar, as the L&T (main contractor) - composite supply or not - requirement of registration - HELD THAT:- In the instant case the applicant is neither seeks the classification of goods nor services but seeks whether the HSN or SAC that need to be mentioned in the invoice. Thus the question is not covered under the issues mention in Section 97 (2) of the CGST Act 2017. In view of the foregoing the authority refrain from answering this question at it is not within the jurisdiction of this authority - it is pertinent to note that the invoice is issued for the supply of goods or services or both and when it is mandated to mention the HSN in the invoice, the HSN covering the transaction, in this case the supply of services, needs to be mentioned. But in case of e-waybill, the movement is of goods and hence the delivery note causing the movement of goods needs to be raised and the HSN of the goods moved and the value of such goods moved needs to be recorded in such e-waybill.
Whether the applicant is required to be registered in the state of Karnataka for execution of the work order which was issued by M/s L&T, Karnataka, on the applicant's premises registered at Noida, UP, from where the applicant raises the invoice? - HELD THAT:- In the instant case, the applicant has obtained registration for the premises located at Noida, UP and hence the location of the supplier of services is the place of business of the applicant. It is also pertinent to note that the applicant has no fixed establishment in the State of Karnataka as on date.
Section 12 of the IGST Act 2017 determines the place of supply and specifically Section 12 (3) of the IGST Act is relevant to the impugned transaction & determines the place of supply of services directly in relation to immovable property in respect of any service provided by way of grant of rights to use immovable property or for carrying out or co-ordination of construction work or any ancillary services shall be the location at which the immovable property is located or intended to be located and if the location of the immovable property is located or intended to be located outside India, the place of supply shall be the location of the recipient - in the instant case, the place of supply of services is the location at which the immovable property is located i.e. Karwar in Karnataka state.
In the instant case, the applicant has only one principal place of business (Noida, UP) for which registration has been obtained and does not/intended to have any other fixed establishment other than the principal place of business, as admitted by the applicant. Therefore the location of the supplier itself is the principal place of business which is in Noida, Uttar Pradesh. Thus, there is no requirement for a separate registration in Karnataka for execution of the contract - the nature of supply is of inter-State supply and the applicant can supply the impugned services from the place of registration i.e. Noida, UP on raising the invoice from the said place by charging IGST.
Whether the applicant obtain the ISD registration, avail the ITC of the tax paid on the services procured from the suppliers in Karnataka at the site i.e. Karwar, Karnataka and distribute the same to their registration at Noida, UP? - HELD THAT:- It could be seen from the definition under Section 2(61) of the CGST Act that the Input Service Distributor is an office of the supplier of goods or services or both which receives tax invoices issued under section 31 towards the receipt of input services and issues a prescribed document for the purposes of distributing the credit (ITC). Thus, to distribute the ITC, the supplier should obtain the Input Service Distributor registration for the premises from where they intend to distribute the credit. It is an admitted fact that the applicant neither have nor intend to have any establishment at the site at Karwar, Karnataka and hence cannot obtain the ISD registration.
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2021 (11) TMI 393 - AUTHORITY FOR ADVANCE RULINGS, KARNATAKA
Classification of services - rate of GST - providing job work services by carrying out the process such as anodizing, plating on the materials sent by its customers on job work basis i.e., manufacturing services on physical inputs (goods) owned by others - Whether the job work services provided by the applicant are covered under clause (id) or clause (iv) of entry number 26 of Notification No.11/2017-Central Tax(Rate) dated 28-06-2017 for the heading 9988 or not? - HELD THAT:- The applicant is engaged in providing job work services by carrying out the processes such as anodizing, plating on the materials sent by their customers and returns the said material back to the respective customers. In this regard the applicant sought advance ruling on the issue that whether their activity is covered under clause (id) or clause (iv) of the entry number 26 of Notification No. 11/2017-Central Tax (Rate), as amended, and consequential rate of GST applicable to their activity.
Applicability of circular No.126/45/2019-GST dated 22-11-2019 - HELD THAT:- It could be inferred from the circular that the job works defined under Section 2 (68) of the CGST Act i.e. job work services by way of treatment or processing undertaken by a person on goods belonging to another registered person are covered under clause (id) of entry number 26 of the Notification 11/2017-Central Tax (Rate) dated 28.06.2017, as amended, and clause (iv) of the notification supra covers only services which are excluded under clause (id) and also carried out on physical inputs (goods), owned by the unregistered person/s - In the instant case the applicant provides the job work services on the goods belonging to registered persons and hence are covered under clause (id) of entry number 26 of the Notification 11/2017-Central Tax (Rate) dated 28.06.2017, as amended and accordingly attract GST rate of 12%.
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2021 (11) TMI 392 - AUTHORITY FOR ADVANCE RULING, KARNATAKA
Valuation - subsidy from Government of Karnataka, to be reduced from the value of import of plant and machinery from China or not - levy of GST on imports of plant & machinery after reducing Government subsidy from the CIF value of the imports - HELD THAT:- For the import of goods, the importer has to pay custom duty and IGST as per Customs Act, 1962 and Customs Tariff Act, 1975 on the value as determined under the Customs Tariff Act, 1975 at the point when the duties of customs are levied on the said goods. Thus it is evident that the value for levy of IGST on imports is governed by Customs Act, 1962 and Customs Tariff Act, 1975.
The applicant is importing silk reeling machineries from China and is supposed to pay IGST on import of goods. The applicant wishes to know whether the subsidy given is to be reduced from the value of import of plant and machinery to pay IGST. Since the value for levy of IGST on imports is governed by Customs Act, 1962 and Customs Tariff Act, 1975 answering the questions of the applicant does not come under the purview of this authority.
The application filed by the applicant for advance ruling is disposed off as rejected.
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2021 (11) TMI 391 - AUTHORITY FOR ADVANCE RULING, KARNATAKA
Exemption under GST - pure services - Government entity or not - documentary services including picture of the testimony / documentary videos provided to corporations and various boards including KHB - documentary services including picture of the testimony / documentary videos provided to various government departments including Zilla and Taluk Panchayat - documentary videos and /or pictures of testimony through CD or other storable devices to various Government Departments and Panchayats - entry No.3 of the Notification No.12/2017-Central Tax (Rate) dated 28.06.2017.
HELD THAT:- The applicant has stated that they are providing services to various State/Central Government Departments, Local Authorities and various Boards and corporations. The applicant has not specified to which Boards and corporations they are providing the service of producing documentary videos. Since the applicant is providing the said services to various State/Central Government Departments, Local Authorities the first condition to claim exemption is satisfied subject to the condition that the Boards and/or Corporations to which the applicant is providing the above said services qualify to be a 'Governmental Authority' or 'Government Entity' in terms of the definitions at (zf) and (zfa) respectively of the Notification No.12/2017-Central Tax (Rate) dated 28.06.2017, as amended.
The applicant is providing services by way of producing documentary videos, picture of testimony to various State Government Departments, Local Authorities, Boards and Corporations. But 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. Hence provision of such services is liable to tax at 18%.
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2021 (11) TMI 390 - AUTHORITY FOR ADVANCE RULING, KARNATAKA
Requirement for registration - inter-state sales or not - Tax Invoice from Bengaluru office (Registered Place of Business) for imports received at Chennai Sea Port and directly sold to a customer either in Andhra Pradesh, Tamil Nadu, etc., could be raised, or a separate registration is to be obtained at the place of Importation, i.e. Tamil Nadu - place of supply of goods - If we do not need separate registration in Tamil Nadu, can we do the transaction using Karnataka GSTIN? - availability of Input tax credit to the registration in Karnataka u/ s 16(2) even though the goods have not been physically received in the premises of the applicant but directly transported to the customer.
HELD THAT:- As per the provisions of place of supply of Goods under section 11 (a) of IGST Act 2017, “the place of supply of goods imported into India shall be the location of the importer”. In case of the applicant, location of the importer is the state of Karnataka where the applicant has obtained the GST registration. Therefore, the applicant though imports the goods to the port of Chennai, imported goods are deemed to have been supplied to the location of the importer i.e., Karnataka and then further supplied to customer. Hence imported goods supplied directly from the port of import to the customer located in other states or Union territories other than state of Karnataka, such transaction shall be treated as a supply of goods in the course of inter-State trade or commerce in terms of section 7(1) of the IGST Act, 2017 and is liable to issue IGST tax invoice in terms of section 20 of the IGST Act 2017 read with section 31 of the COST Act 2017.
Section 22 of the CGST Act 2017 provides that every supplier is required to take registration in the state from where such supplier makes taxable supply of goods or services or both. Section 24 (i) of the CGST Act 2017 states that, “persons making any inter-State taxable supply shall be registered under CGST Act 2017 - Since the applicant has stated that he does not have any place of business in Tamil Nadu and does not maintain any office / fixed establishment in Tamil Nadu or any other state in India other than Karnataka, the applicant is not required to take any separate registration at the place of importation.
Section 20 of the IGST Act, 2017 read with section 16 of the CGST Act, 2017 provides that IGST paid on import of goods can be utilized as the credit of the input tax if such imported goods are used in the course of furtherance of his business - the explanation to the said section provides that where the goods are directly delivered to a customer under bill to ship to model, then it would be deemed to have received the goods even though the goods are shipped to the end customer location directly.
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2021 (11) TMI 389 - AUTHORITY FOR ADVANCE RULING, KARNATAKA
Classification of Supply of services - HSN Code - Rate of Tax - Pushti, a mixture of Ragi, Rice, Wheat, Green gram, Fried gram, Moong dal, and Soya in different proportion - applicability of Circular No.149/05/2021-GST dated 17.06.2021 to MSPC - MSPC is supplying food to CDPO for which the end user is anganwadi centers - entry No. 66 of Notification No. 12/2017 Central Tax (Rate), dated 28.06.2017 - HELD THAT:- The applicant states that that they are supplying the goods to the CDPO and CDPO in turn supplies the same to Anganwadis. The applicant is purchasing and supplying only goods and not into supply of any service. Since Notification No. 12/2017 Central Tax (Rate), dated 28.06.2017 deals with supply of services which are exempted, the same cannot be applied to supply of goods as in the case of the applicant. Since the Notification No. 12/2017 Central Tax (Rate), dated 28.06.2017 is not applicable to the applicant's case, Circular No. 149/05/2021-GST, dated: 17.06.2021 also is not applicable to the applicant's case.
Circular No.149/ 05/ 2021-GST dated 17.06.2021, does not apply to MSPC as the applicant is into supply of goods.
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