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GST - Case Laws
Showing 41 to 60 of 154 Records
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2020 (7) TMI 527 - AUTHORITY FOR ADVANCE RULING, MAHARASHTRA
Maintainability of application- Scope of Advance Ruling - Tax liability of supply - Marine / Pressure Tight Cables/ Non Pressure Tight Cables - goods manufactured & designed especially for use for Defence Ministry in their Warship as Parts of Warship - rate of GST - applicability of Sr. No: 252 of Schedule-I of the Notification No.1/2017 Integrated Tax (Rate) dated 28.06.2017 - Jurisdiction - HELD THAT:- The situs of supply of goods is originating from Gujarat and all other legal provisions of GST Acts are also to be fulfilled in Gujarat. The Gujarat GST authorities have the jurisdiction to collect GST on this transaction. Applicant is not carrying out any supply from the State of Maharashtra. Hence, the jurisdiction of this transaction is covered under Gujarat and Maharashtra has no scope to levy GST thereon.
Maintainability of application - HELD THAT:- Considering the provisions of the Chapter XVII of the GST Act, this authority can only pass rulings on supplies being undertaken or proposed to be undertaken from Maharashtra State only. Therefore, this authority has no jurisdiction to entertain the subject application and to interfere in such activity of ‘supply of goods’, being carried out from another state.
This authority has no jurisdiction to pass ruing on such matters pertaining to supply of goods or services or both which are being undertaken outside Maharashtra State by a different and distinct entity. We find no reason to entertain this application. Hence, without going into the merits of the case, the present application of the applicant seeking ruling on questions stated hereinabove is not maintainable and liable for rejection.
Application dismissed as not maintainable.
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2020 (7) TMI 526 - DELHI HIGH COURT
Constitutionality and legality of National Anti Profiteering Authority - Section 171 of the Central Goods and Services Tax Act and Rule 126 of the Central Goods and Services Tax Rules - HELD THAT:- List the matter on 24th August, 2020 along with other connected matters.
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2020 (7) TMI 511 - AUTHORITY FOR ADVANCE RULING, MAHARASHTRA
Input Tax Credit - Paver Blocks laid on the land - immovable or movable property? - such blocks are not to be fastened on earth, rather they are only laid on plain surface to park the cars of Company’s customers - HELD THAT:- In the subject case, the Paver Blocks have to be dismantled and disassembled from the vacant land before being erected or assembled elsewhere - It cannot be disputed that such Paver Blocks are not usually shifted from one place to another, nor is it practicable to shift them frequently. The Paver Blocks, once they arc erected and assembled, continue to operate from where they are positioned and actually become a part of the parking facility. Having regard to the manner in which these parking facilities are erected using Paver Blocks, they do not answer the description of “goods”.
The main reason for use of paver blocks is to keep the tyres of the vehicles in good condition with no wear and tear, to have longevity, durability and flexibility to re-use. The flexibility to re-use does not mean that blocks will be removed and re-erected frequently. They are meant to be permanently fixed to earth but whenever the need arises the applicant may remove them and re-erect - the applicant would not use the paver blocks as in the subject case with an intention to remove it and use the same as a movable property.
The subject goods would qualify as immovable property and therefore Applicant cannot avail ITC in the subject case as per Section 17(5) (d) of the CG ST Act, 2017 - answered in negative.
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2020 (7) TMI 510 - AUTHORITY FOR ADVANCE RULING, MAHARASHTRA
Classification of goods - Shatamrut Chyavan - classified under TSH 2309 90 10 of Customs Tariff Act, 1975 or otherwise - benefit of Sr. No. 102 of Notification No. 02/2017 - Central Tax (Rate) dated 28.06.2017 - Whether the goods falling under TSH 2309 90 10 of Customs Tariff Act, 1975 as adopted to GST can he treated as waste of sugar manufacture, whether or not in the form of pellets under heading 2303?
HELD THAT:- The subject product is manufactured out of sugarcane molasses, which is the major ingredient. Applicant is also adding other ingredients along with sugarcane molasses in the subject product, to increase the nutritional value of the sugarcane molasses. Applicant has been classifying the impugned product under Chapter No. TSH 2309 90 10, attracting ‘NIL’ rate of GST and now wants to classify the same under Chapter 2303 of the Customs Tariff Act, 1975 as adopted by GST Tariff. The reason put forth by the applicant to classify the subject product under Chapter Heading 2303 is that the said product is only a nutritional supplement to the cattle feed and cannot be considered as cattle feed in isolation.
The subject product is a complete animal feed supplement manufactured out of molasses mixed with 15 other ingredients to increase the nutrition value of the feed supplement. From the submissions made by the applicant and view of the above Chapter Notes, it is found that the subject product is nothing but prepared animal feed and therefore the same would fall under the said Chapter Heading 23.09 - the subject product has been rightly classified by the applicant under Chapter Heading 23.09 and the said product, falling under TSH 2309 90 10 of Customs Tariff Act, 1975 as adopted to GST, attracts ‘NIL’ rate as per Sr. No. 102 of Notification No. 02/2017 - Central Tax (Rate) dated 28.06.2017.
Whether the goods falling under TSH 2309 90 10 of Customs Tariff Act, 1975 as adopted to GST can be treated as ‘waste of sugar manufacture, whether or not in the form of pellets under heading 2303’ attracting 5% GST per Schedule I, Sr. No. 104 of Notification No. 01/2017-C.T.(Rate) dated 28.06.2017 or not? - HELD THAT:- The question is general in nature and does not appear to be connected to a particular product being manufactured by the applicant or proposed to be manufactured. Thus the said question is not relation to supply of goods or services or both, being undertaken or proposed to be undertaken by the applicant. Also, the said question is not on matters or questions specified in subsection 2 of Section 97, in relation to the supply of goods or services or both being undertaken or proposed to be undertaken by the applicant - the question is thus not answered.
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2020 (7) TMI 509 - MADHYA PRADESH HIGH COURT
Filing of Form GST TRAN-1 - transitional credit - time limitation - vires of 117 of the CGST Rules, 2017 - HELD THAT:- The writ petition is disposed off with a direction to the respondent No.2, 3 and 4, as the case may be, to take a decision on the representation (Annexure P/7) filed by the petitioner within fifteen days by passing a speaking order after affording an opportunity of hearing to the petitioner or his representative through video conferencing, in accordance with law.
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2020 (7) TMI 508 - PATNA HIGH COURT
Principles of Natural Justice - Adjudication of matter before the Date specified in the notice - Section 61 of the Central/Bihar Goods and Services Tax Act, 2017 - HELD THAT:- It is not disputed that one of the impugned orders stands passed in violation of principles of natural justice. Impugned order dated 2nd of March, 2020 is passed by the Deputy Commissioner of State Tax, Patna Central Circle, Bihar, Patna who issued a notice asking the petitioner to show cause by a particular date. However, for unexplained reasons and circumstances, without any prior intimation or knowledge, the matter was preponed and without affording any opportunity of hearing, decided, holding the view of the revenue. The order does entail civil and pecuniary consequences, causing prejudice to the petitioner. On all fours, principles of natural justice stand violated.
The impugned order dated 02.03.2020 and the resultant order dated 04.03.2020 passed by the Deputy Commissioner of State Tax, Patna Central Circle, Bihar, Patna are quashed and set aside with the matter remanded back to the authority for consideration afresh - Petition allowed by way of remand.
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2020 (7) TMI 507 - NATIONAL ANTI-PROFITEERING AUTHORITY
Profiteering - purchase of flat - allegation that the benefit of input tax credit not passed on - contravention of section 171 of CGST Act - penalty - HELD THAT:- The respondent has benefiteed from the additional ITC to the extent of 7.06% of the turnover during the period from 01.07.2017 to 31.10.2019 and hence the provisions of Section 171 of the CGST Act, 2017 have been contravened by the repsondent as he has not passed on the benefit to his customers and thus, he has profiteered an amount of ₹ 2,87,64,178/- inclusive of GST @ 12% as is evident from the report.
The respondent has denied benefit of ITC to the buyers of the flats being constructed by him in the project in contravention of section 171 (1) of CGST Act, 2017 and thus he has resorted to profiteering.
Penalty - HELD THAT:- The respondent has committed as offence u/s 171(3A) of CGST Act, 2017 and therefore, he is apparently liable for imposition of penalty - accordingly, a SCN be issued to him directing him to explain why the penalty prescribed u/s 171 (3A) of the Act read with Rule 133(3)(d) of CGST Rules, 2017 should not be imposed on him.
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2020 (7) TMI 482 - AUTHORITY FOR ADVANCE RULING, MADHYA PRADESH
Rectification of mistake - typographical error - tax leviable on the services on which applicant has sough ruling would be 18% - HELD THAT:- After perusal of the said order it was found that there was error in para number 5 and the para number 8.1 in typing the entry number. Hence in exercise of the powers under Section 102 of GST Act a rectification is being made in the said order dated 02.06.2020.
In para number 5 and para number 8.1 for the words and number “under entry no. 26(ii)” read as “under entry no. 26(iv)” - Rest of the order/ruling will be same as in the original order.
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2020 (7) TMI 481 - AUTHORITY FOR ADVANCE RULING, MADHYA PRADESH
Classification of service - rate of tax - coal handling and distribution charges wherever supply of such services is intended to be made expressly to a customer - utilization of input tax credit - HELD THAT:- U/s 16 (1) of CGST Act, every registered person shall, subject to such conditions and restrictions as may be prescribed and in the manner specified in section 49, be entitled to take credit of input tax charged on any supply of goods or services or both to him which are used or intended to be used in the course or furtherance of his business and the said amount shall be credited to the electronic credit ledger of such person - U/s 49(4) of the Act, the amount available in the electronic credit ledger may be used for making any payment towards output tax under this Act or under the Integrated Goods and Services Tax Act in such manner and subject to such conditions and within such time as may be prescribed.
Thus, the coal handling and distribution charges will be taxable @ 18% and not 5% wherever supply of such services only is intended to be expressly made to a customer - the input credit availed as per the conditions specified in section 16 shall be allowed for discharging the liability towards supply of coal and supply of coal handling and distribution charges respectively.
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2020 (7) TMI 480 - AUTHORITY FOR ADVANCE RULING, MADHYA PRADESH
Classification of supply - mounting of Bus/ Truck Body by the job worker on the chassis supplied by the principle for which the applicant charged fabrication charges including cost of certain material that was consumed during the process of job work - whether classified as supply of service under HSN 9988? - Circular no. 52/26/2018-GST issued by Government of India, Ministry of Finance, Department of Revenue dated 9th August, 2018.
HELD THAT:- The supply towards provision of services in respect of activity of mounting/ fabrication of bodies on chassis provided by Customer should be treated as supply of bus or provision of services in respect of activity of mounting/fabrication of bus body on the chassis wherein the said activity of mounting/fabrication is outsourced to the Applicant by owner/provider of chassis, in no case the ownership of the chassis belongs to the applicant, hence in both the scenarios mentioned in the question will be taxable under SAC 998881 - “Motor vehicle and trailer manufacturing services” and under entry no. 26(ii) as “Manufacturing services on physical inputs (goods) owned by other” it is taxable @18%.
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2020 (7) TMI 479 - GUJARAT HIGH COURT
Utilization of Input Tax credit - cancellation of debit entries in the Petitioner’s Electronic Credit Ledger maintained under the CGST Act - HELD THAT:- The petitioner has not approached the respondents at any point of time making such a request. He also does not dispute that the investigation which is going on can continue for further period of 18 months approximately and he also does not dispute the provision of Section 76 and 76(2) which is on a statute book reflecting the liabilities of taxes of the parties. Relying on various decisions, it is urged that without following the procedure prescribed under the statute and without any taxing event having taken place, no recovery is permissible.
Issue Notice returnable on 24.7.2020.
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2020 (7) TMI 478 - AUTHORITY FOR ADVANCE RULING, BIHAR
Input Tax Credit - inward supply for the purpose of Banking Business - apportionment of credit - blocked credit - HELD THAT:- Benefit of Section 17(4) of Banking Regulations Act should be allowed.
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2020 (7) TMI 477 - AUTHORITY FOR ADVANCE RULING, MADHYA PRADESH
Input Tax Credit - Blocked Credits - Purchase of Water Slides - Water Slides are made up of Strong PVC - Water Slides are installed on Steel and Civil Structure - Input goods and services used in construction of the support structure - Goods and services used for area development and preparation of land on which water slides are erected - Goods and Services used for construction of Swimming Pool / Wave Pool as water slides directly run into pools.
HELD THAT:- To set to rest the disputes regarding the definition of the Plant, in light of the fact that input tax credit of works contract services, goods and services received as input for construction of immovable property on own account has been specifically put under the Blocked Credit list with the rider that it shall not apply to plant and machinery, it was incumbent that there should be clarity regarding classification of buildings and civil structures that were hitherto been classified as ‘Plant - in the explanation relating to Plant and Machinery, beneath sub-section (6) of Section 17. while providing the meaning of the term plant and machinery, it has been clearly stated that Buildings and Civil Structures shall not be covered under the term Plant. However, while so clarifying, it has been accepted and understood that plant and machinery many a times requires support structure and / or foundation for installation and cannot work otherwise. Thus, civil structures and foundation as supporting structure for fastening of plant and machinery to earth has been included as part of plant and machinery.
Eligibility of ITC in case of Input Tax paid on Purchase of Water Slides - HELD THAT:- Water Slides shall fall within the meaning of the term apparatus, equipment and machinery and therefore, shall be eligible for claim of ITC.
ITC on Steel and Civil Structure on which the Water Slides are installed - HELD THAT:- The foundation and support structures which are used to fasten plant and / or machinery to the Earth is classifiable as ‘Plant and / or Machinery’ - In the instant case. slide are fastened to the Steel and Civil Structure are affixed to the Earth through these Steel an Civil Structures. Therefore, these Steel and Civil Structures shall form part of the Plant and Machinery. Accordingly. the credit of “Tax paid on Input goods and services used in construction of this support structure shall be available.
ITC - For Wave Pool, Machines have been installed - HELD THAT:- The foundation for these machines are eligible to be part of the Machines and the ITC shall be treated in a manner similar to that of the Machines. However, the Machine Room, which is a civil structure, erected for protecting machine is neither foundation nor civil structure for machine therefore, IT relatable to the construction of the room for Housing the machine shall not be eligible for ITC.
ITC on Goods and services used for area development and preparation of land on which water slides are placed - HELD THAT:- The area development and expenditure on preparation of land like site formation services are part of the cost of the land and thus are interminably bound with land. These expenses are liable to be capitalized under the head Land. Therefore, on account of the specific exclusion of Land from the meaning of ‘plant and machinery’. ITC related to Land Development, subject to its capitalization as per accounting principles shall not be available.
ITC on Construction of swimming pools / Wave Pool in which the water slides directly run into - HELD THAT:- Such Swimming Pools / Wave Pools are not support structure or foundation for a plant, but are independent items per se. Since they are not foundation or support structure on which slides are fasted for affixing them to earth and also on account they being Civil Structures. they are therefore excluded from the meaning of ‘plant and machinery’. Thus, the ITC related to the construction of the Swimming Pools and Wave Pools. subject to its capitalization shall not be available.
ITC on Inward supplies of goods or services involved in the construction of immovable properly which is a civil structure or building - HELD THAT:- The provision of facilities like transformers. sewage treatment plant. Electrical Wiring and Fixtures. Surveillance systems. D.G. Sets. Lilts. Air Handling Units etc. are sine qua non for a commercial mall and hence cannot he considered separate from the building or civil structure. The provision of these are either statutory for a building or defines the nature of the building as a commercial mall. Hence the input tax credit on the inward supplies of goods or services involved in the construction of immovable properly which is a civil structure or building is not available to the applicant and hence blocked.
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2020 (7) TMI 476 - AUTHORITY FOR ADVANCE RULING, MADHYA PRADESH
Input tax credit - Purchase of Lift - credit available to Hotel or not - it has been used in the course or for the furtherance of business - HELD THAT:- The lift becomes part of the building and is not a separate thing per se. A lift does not have an identity when removed from the Building. Therefore, the lift cannot be said to be separate from a Building. Also, it has to be borne in mind that a lift is not an item that is purchased an sold. It is a customized mechanism for transportation, designed to suit a specific building. Upon piece by piece installation, it becomes an integral part of the building.
In the explanation relating to Plant and Machinery, beneath sub-section (6) of Section 17, while providing the meaning of the term plant and machinery, it has been clearly stated that Buildings and Civil Structures shall not be covered under the term Plant. However, while so clarifying, it has been accepted and understood that plant and machinery many a times requires support structure and / or foundation for installation and cannot work otherwise. Thus, civil structures and foundation as supporting structure for fastening of plant and machinery to earth has been included as part of plant and machinery.
In the instant case, the lift has become part of the building and thus falls under the exclusion from plant and machinery and accordingly, we do not find any reason to interfere with the clear provisions of statute.
The input tax credit of tax paid on Lifts procured and installed in hotel building shall not be available to the applicant as the same is blocked in terms of Section 1 of the CGST Act 2017, become an integral part of the building.
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2020 (7) TMI 475 - AUTHORITY FOR ADVANCE RULING, MADHYA PRADESH
Classification of supply - Works Contract or Composite supply - principal supply - work relating to “supply, installation and fixing of customized furniture in a building” - applicable rate of GST - HELD THAT:- The supply, installation and fixing of furniture, customized or customized cannot be a works contract, as the items of furniture have been made or manufactured at the supplier's place which have been installed or fixed at the place of the recipient. Such installed or fixed items of furniture can be removed/ moved to any place without damage to the furniture. Thus, supply, installation and fixing of furniture cannot be covered under works contract, as it does not result in immovable property or it is not going to be part of immovable property - As per the view point and interpretation of law and facts of the case, the supply, installation and fixing of furniture, either customized or not customized, is not composite supply of works contract by way of construction etc of civil structure or other original works to the Government .and therefore, is not chargeable to concessional rate of 12% as per the Notification No.11/2017 dated, 28.06.2017.
The contract in questions i.e. work order relating to supply, installation and fixing of customized furniture in a building conform to the “COMPOSITE SUPPLY” as provided in section 2(30) of CGST Act, 2017. The supply made by the applicant to the Capital Project Administration consists of Two taxable supplies of Goods and Services, which are naturally bundled and supplied in conjunction with each others, where the supply of goods viz. Furniture is the principal supply. Thus, the work order in question shall merit classification under Chapter Head 9403 of GST Tariff and shall be liable to GST at the rate applicable at the time of supply.
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2020 (7) TMI 474 - AUTHORITY FOR ADVANCE RULING, MADHYA PRADESH
Levy of GST - amount recovered by the applicant from other government departments for doing research work and study, which help them make policies or understand its impact - Pure services or not - Services provided by the applicant to other government department - entry no 8 of Exemption Notification No. 12/2017 Central Tax (Rate) dated 28th June 2017.
HELD THAT:- The applicant has attached the list of works undertaken by it, mentioning the item no of respective Schedule of Constitution of India against the each work being executed, in relation to which the pure services are being provided by the applicant to other government departments or local authority or a Governmental authority or a Government Entity - the works of pure services undertaken by applicant are covered in clauses of the Eleventh and Twelfth Schedule referred in article 243G and 243W of the Constitution.
The of works being undertaken by the applicant is in relation to the functions entrusted to Municipalities under article 243W and to Panchayats under article 243G of the Constitution, and, therefore, it is exempt from tax being covered in Sr. No. 3 of Notification No. 12 of 2017-Central Tax (Rate), dated 28-6-2017 (as amended from time to time) issued under Central Goods and Services Tax Act, 2017 (CGST/Act), and corresponding notifications issued under Madhya Pradesh Goods and Services Tax Act, 2017.
Whether Services provided by the applicant to other government department are covered under the entry no 8 of Exemption Notification No. 12/2017 Central Tax (Rate) dated 28th June 2017? - HELD THAT:- Entry No. 8 prescribe for Services provided by the Central Government, State Government, Union territory or local authority to another Central Government, State Government, Union territory or local authority - this entry grants exemption to services provided by Central Government, State Government, Union territory or local authority only. Hence to qualify for the exemption granted under Entry No 8 service provider must be government or local authority.
The Word government has been defined under the GST laws and the definition government covers Central Government and State Governments only. Here it is pertinent to note that the application is a society registered under MP Societies Registrikaran Act 1973 and has its own governing body being presided over by Chief Minister of State of Madhya Pradesh. Hence the applicant does not fall within the definition of Government or local Authority - the applicant falls within the ambit of definition of Government Entity as defined under clause (zfa) of notification no 12/2017.
Entry no 8 of Notification no 12/2017 CT(R) covers services provided by government or local authority only however the applicant does not cover within the definition of Government or Local Authority hence Services provided by the applicant to other government department are not covered under the entry no 8 of Exemption Notification No. 12/2017 Central Tax (Rate) dated 28th June 2017.
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2020 (7) TMI 473 - AUTHORITY FOR ADVANCE RULING, MADHYA PRADESH
Classification of goods - Preparation of a kind used in Animal Feeding - Bio Processed Meal - whether fall under HS Code 23099090 and applicable rate of GST on said product shall be NIL as per Notification 02/2017 - CT (Rate) dated 28.06.2017? - errors in the order of Advance Ruling Authority - rectification of the mistake - HELD THAT:- Chapter heading 23099090 is exclusively meant for animal feed. The applicant has started their new unit at 112, Industrial Area No.1 Dewas for manufacture of the finished product “Preparation of a kind used in Animal Feeding - Bio Processed Meal” which will be used for animal feeding only. The applicant also submitted a detailed process as how the raw material soyabean meal will undergoes various processes in various section like inoculation and missing section, bio-processing section / fermentation section, drying section, milling and packaging section to achieve the goal of manufacturing the finished product - The applicant finally declared that the product Preparation of a kind used in Animal Feeding - Bio Processed Meal will only be used for animal feeding and not for in other purpose.
The said product i.e. Bio Processed Meal is only for specific use of Animal Feed, it is clear to us that the finished product being manufactured by the applicant will only be used for animal feeding and not for any other purpose and thus it should fall under chapter heading 23099090 - Serial No. 102 of Notification 2/2017-CT (Rate) dated 28.06.2017 and corresponding notification issued under MPGST Act speaks that the goods Aquatic feed including shrimp feed and prawn feed. poultry feed & cattle feed, including grass, hay & straw, supplement & husk of pulses, concentrates & additives, wheat bran & de-oiled cake falling under chapter heading 2302, 2304, 2305, 2306, 2308, 2309 are exempted from payment of GST.
The applicant is eligible to avail exemption on their finished products “Preparation of a kind used in Animal Feeding - Bio Processed Meal” from payment of GST under Notification 2/2017-CT (Rate) dated 28.06.2017 and corresponding notification issued under MPGST Act.
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2020 (7) TMI 448 - AUTHORITY FOR ADVANCE RULING, ANDHRA PRADESH
Classification of services - segregation, treatment, recycling of Municipal Solid Waste (MSW) and thus clearing MSW landfills - exemption under SI.No.3 of Notification 12/2017 dated 28.07.2017 as amended - service recipient i.e., M/s. Tirupati Smart City Corporation - Governmental Authority or not - liability of Governmental Authority to deduct TDS as per the provisions of section for the services rendered.
Classification of services - whether the nature of the activities of the applicant falls under SAC Code No 9994? - HELD THAT:- We concur with the opinion of the applicant after a thorough examination of the nature of the services of the applicant by classifying them under Sl.No.32 of Heading 9994 of Notification No: 11/2017 Central Tax (Rate) dt. 28.06.2017.
Whether services provided by the applicant is exempted under SI.No.3 of Notification 12/2017 dated 28.07.2017 as amended? - HELD THAT:- Sl. No. 3 of the above notification describes pure services (excluding works contract service or other composite supplies involving supply of any goods) provided to the Central Government, State Government or Union territory or local authority or a Governmental authority 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.
Whether the services rendered by the applicant are pure services? - HELD THAT:- The Services rendered by the applicant as seen from the record, are devoid of any incorporation of goods in the process of supply and the agreement copy between the applicant and Tirupati Smart City Corporation Limited reveals the same citing the approximate value of the work to be done under the agreement for a sum of ₹ 18,64,00,000/- (Rupees Eighteen Crore Sixty Four lakh only) for 2,00,000 MT (Contract Price). Hence, they are classifiable as pure services, excluding works contract service and other composite supplies involving supply of any goods.
Whether the service recipient i.e., M/s. Tirupati Smart City Corporation is a “Governmental Authority” as per the definition of Notification No: 12/2017 Central Tax (Rate) dt:28.06.2017 as amended? - HELD THAT:- The applicant satisfies all the conditionalities as described under Section 2(16) of the IGST Act, or as defined vide Notification No. 31/2017 - Central Tax (Rate), dated: 13.10.2017 - the service recipient is a Governmental Authority.
Thus, services provided by the Applicant are exempted under SI.No.3 of Notification No. 12/2017 dated 28.07.2017 as amended further by Notification No. 32/2017 - Central Tax (Rate), dated: 13.10.2017.
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2020 (7) TMI 447 - AUTHORITY FOR ADVANCE RULING, ANDHRA PRADESH
Supply or not - interest/penalty collected for delay in payment of monthly subscription by the members - classification and rate of duty applicable - whether there is any Tax Liability on such additional amount (termed as Interest) charged on delayed payment? - HELD THAT:- The applicant is chit company engaged in the activity of distribution of prize money to its members and the additional amount is being collected in the form of interest for delay payment from the members as consideration as a fixed percentage of transaction value. Having regard to the trade parlance it is also clear that chit company gives a reasonable time to its customer to make the payment however if the customer do not make the payment within the stipulated time then an additional amount is being charged and it may be termed as different names i.e. Interest, Late fee or Penalty - The additional amount being charged on delayed payment termed as Interest, late fee or penalty on the amount delayed in specified time cannot be bifurcated as such additional payment do not have its own classification. It is taking colour from original supply i.e., supply of financial and related services.
The entry No 27 of Notification no 12 / 2017 of CGST dated 28th June 2017 exempt the services by the way of extending deposits, loans or advances in so far as the consideration is represented by way of interest or discount (other than interest involved in credit card services). Further, interest is also defined vide Section No.2 z(k) as means ‘interest payable in any manner in respect of any moneys borrowed or debt incurred (including a deposit, claim or other similar right or obligation) but does not include any service fee or other charge in respect of the moneys borrowed or debt incurred or in respect of any credit facility which has not been utilised’.
It is further clarified in circular No.102/21/2019-GST dated 28th June, 2019 that “any service fee/charge or any other charges that are levied by M/s. ABC Ltd in respect of the transaction relating to extending deposits, loans or advances does not qualify to be interest as defined in notification 12/2017-Central Tax (Rate) dated 28th June, 2017, and accordingly will not be exempt”.
The additional amount being charged in delay of payment by whatever name called should be classified as principal supply and the classification of the same cannot differ from the original supply. Hence the additional amount charged on delayed payment shall be taxed as per original supply i.e. supply of financial and related services.
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2020 (7) TMI 446 - DELHI HIGH COURT
Direction to disburse the refund amount - HELD THAT:- Keeping in view the strict timelines stipulated in Rules 90 and 91 of the Central Goods and Services Tax Rules, 2017 this Court directs the respondent to process the petitioner’s aforesaid manual application within three working days.
List on 23rd July, 2020.
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