|
Advanced Search Options
GST - Case Laws
Showing 61 to 80 of 154 Records
-
2020 (7) TMI 445 - GUJARAT HIGH COURT
Legality and Validity of notice of intimation under Section 74(5) of the Goods and Service Tax Act, 2017 of the amount of tax - HELD THAT:- A writ application challenging the notice of intimation in the FORM GST DRC-01A issued under Section 74(5) of the Act is not maintainable in law. It is just an intimation. It is up to the writ applicant whether to pay attention to such intimation or not. If the writ applicant deems fit to ignore it, the same may entail the consequence of further show cause notice under Section 74(1) of the Act, 2017. In any view of the matter, even if a further notice under Section 74(1) of the Act, 2017 is issued, an opportunity of hearing will definitely be given to the writ applicant before his actual liability is determined under the Act, 2017.
Application rejected.
-
2020 (7) TMI 444 - GUJARAT HIGH COURT
Principles of Natural Justice - validity of impugned order dated 22.05.2020 passed by the authority under Section 74 of the Goods and Service Tax Act, 2017 - grievance of the writ applicant is that the impugned order dated 22.05.2020 came to be passed without giving any opportunity of hearing to the writ applicant - the order came to be passed during the period of complete lock-down.
HELD THAT:- The Department has agreed to give an opportunity of hearing to the writ applicant and thereafter pass an appropriate fresh order - the impugned order dated 22.05.2020 is hereby quashed and set aside.
The matter is remitted to the respondent No.2 for giving an opportunity of hearing to the writ applicant and thereafter pass appropriate order in accordance with law - Application allowed by way of remand.
-
2020 (7) TMI 443 - MADRAS HIGH COURT
Validity of Period of limitation for transitional credit - GST TRANS-1 - Validity of Rule 117 of the Central Goods and Service Tax Rules, 2017 - Vires of Section 140 of the Central Goods and Services Tax Act, 2017 - direction to file Form GST TRANS – 1 either electronically or manually to claim the transitional input tax credit - principal contention of the learned counsel for the Petitioner was that Rule 117 of the CGST Rules does not impose a mandatory obligation on registered persons, such as the Petitioner, to file Form GST TRAN-1 within the prescribed period - HELD THAT:- The statutory and constitutional challenge, in this case, is on the basis that Rule 117 of the CGST Rules is ultra vires Section 140 of the CGST Act and Article 14 and 300-A of the Constitution - Section 140 stipulates that a registered person making a claim for input tax credit should furnish a return, within such time, and in such manner as may be prescribed. The rule making power is contained in Section 164, which is couched in wide terms, and enables the Government to frame rules to give effect to the provisions of the Act and, in particular, to make rules for matters that are required to be prescribed by the CGST Act. Interestingly, the power to frame rules with retrospective effect is also conferred subject to the limitation that it should not pre-date the date of entry into force of the CGST Act. Pursuant thereto, Rule 117 was framed whereby a time limit was fixed for submitting the on line Form GST TRAN -1. By the Finance Act of 2020, the words “within such time” were introduced in Section 140, with retrospective effect from 01.07.2020, thereby conferring expressly the power to prescribe time limits in Section 140 even without relying entirely on the generic Section 164. In this statutory context, there are reason to conclude that Rule 117 of the CGST Rules is intra vires Section 140 of the CGST Act but none to conclude otherwise.
Whether the time limit in Section 19(11) of TNVAT is mandatory or directory? - HELD THAT:- The said Section 19(11) also pertains to the time limit for claiming ITC and uses the word "shall". After examining the language of Section 19(11) and the context, including the object and design of the statute, the Hon'ble Supreme Court concluded that the time limit specified in Section 19(11) is mandatory.
In this case, the peremptory word "shall" is used. The relevant rule deals with the time limit for availing Transitional ITC by carrying it forward from the credit balance under tax legislations which have been repealed and replaced by the CGST Act. Thus, the object and purpose of Section 140 clearly warrants the necessity to be finite. ITC has been held to be a concession and not a vested right. In effect, it is a time limit relating to the availing of a concession or benefit. If construed as mandatory, the substantive rights of the assessees would be impacted; equally, if construed as directory, it would adversely impact the Government's revenue interest, including the predictability thereof. On weighing all the relevant factors, which may be not be conclusive in isolation, in the balance, we conclude that the time limit is mandatory and not directory.
Also, Rule 117 specifies that the return in Form GST TRAN – 1 is required to be filed electronically on the common portal - This requirement is not satisfied by handing over the form in person to the Sales Tax Collection Inspector, Tiruvannamalai. Consequently, in our view, the Petitioner has completely failed to make out a case to direct the Respondents to permit the Petitioner to file Form GST TRAN -1 and claim the Transitional ITC of ₹ 4,70,008/-.
Petition dismissed.
-
2020 (7) TMI 442 - NATIONAL ANTI-PROFITEERING AUTHORITY
Profiteering - purchase of a flat - allegation that the benefit of reduction in the rate of tax not passed on - contravention of section 171 of CGST Act - imposition of penalty - HELD THAT:- The amount of benefit of ITC which was required to be passed on by the Respondent or the profiteered amount is determined as ₹ 1,70,28,230/- including the GST @12% on the basic profiteered amount of Rs. as has been mentioned in Annexure-25 of the Report dated 10.12.2019, in terms of Rule 133 (1) of the above Rules. This amount includes an amount of ₹ 488/- including GST @12% on the base amount of ₹ 435/- which has been profiteered by the Respondent from the Applicant No. 1. The Respondent has also realized an additional amount of ₹ 1,70,27,742/- which includes both the profiteered amount @5.38% of the taxable amount (base price) and GST on the said profiteered amount from the other 176 flat buyers who were not party in the present proceedings.
It is also clear from the facts of the case that the Respondent has been directed to pass on the benefit of ITC till 30.04.2019 as data only till April, 2019 was available. Any benefit of ITC which may become available to the Respondent post 30.04.2019 would a so be passed on by the Respondent to the eligible buyers, The State Commissioner GST shall ensure that the above benefit is passed on to the eligible buyers and a report is submitted to this Authority through the DGAP within a period of 4 months from the date of this order.
Penalty - HELD THAT:- It is also evident that the Respondent has denied the benefit of ITC to the buyers of the flats being constructed by him in his Project ‘Sky Terraces’ in contravention of the provisions of Section 171 (1) of the CGST Act. 2017. Therefore, he is apparently liable for imposition of penalty as per the provisions of Section 171 (3A) read with Rule 133 (3) (d) of the CGST Act, 2017. Therefore, notice be issued to him to explain why penalty should not be imposed on him.
-
2020 (7) TMI 411 - AUTHORITY FOR ADVANCE RULINGS, UTTARAKHAND
Input tax credit - goods/services received for construction of hotel building - work contract service received for construction of hotel building - goods/services received for construction of banquet hall which is rented further to customer - work contract service received for construction of banquet hall which is rented further to customer - scope of plant & machinery’ - inclusion of ‘hotel/banquet’ under section 17 - specified goods viz. Lifts, sanitary items, under ground cables etc - reverse charge mechanism.
HELD THAT:- Since applicant has sought advance ruling on admissibility of input tax credit of tax paid or deemed to have been paid , therefore, in terms of said Section 97(2)(d) of the Act, the application filed by the applicant was admitted - Thus authority was of the view that before deciding the application, the fate of said writ petition, whether admitted or otherwise, shall be considered and if any issue is there, notice will be issued and personal hearing would be given.
The authority shall not admit the application where the question raised in the application is pending or decided in any proceedings of an applicant under any of the provisions of this Act. No application shall be rejected under this sub section unless the opportunity of hearing given to the applicant. Where the application is rejected reasons of such rejection shall be specified in the order - as per applicant’s argument their application can be admitted in as much as no case is pending before Hon’ble Court in the name of the applicant on the issue in hand. In this context we find that applicant has been defined under Section 95(c) of the Act which means any person registered or desirous of obtaining registration under this Act.
All the cases are pending in respective courts on the same issue and thus matter is sub-judice - Application rejected.
-
2020 (7) TMI 410 - AUTHORITY FOR ADVANCE RULING, ANDHRA PRADESH
Contract Carriage or not - Rental service of transport vehicles - services of APSRTC giving Non Air Conditioned Buses on contract for the occasions of marriages, functions etc, for transportation of employees and students of other Organizations/Department, for different purposes like, transportation of passengers to Sabarimala, transporting of public to the places where meetings conducted by political parties and to the places like Polavaram project - Serial No 15 of notification 12/2017 - Whether the APSRTC, being a public sector undertaking, whose books of accounts are subjected to CAG of India or an auditor appointed for auditing the accounts of local authorities under any law for the time being in force, is it required to file reconciliation statement in FORM-GSTR-9C as per proviso to Section 35(5) of the GST Act, 2017?
HELD THAT:- As per serial no.15 in Notification no. 12/2017-Central Tax (Rate) dated 28.06.2017 transport of passengers, with or without accompanied belongings, by non-air conditioned contract carriage other than radio taxi, for transportation of passengers, excluding tourism, conducted tour, charter or hire is exempt from GST - the case of the applicant clearly doesn't fall under serial no.15 in Notification no. 12/2017-Central Tax (Rate) dated 28.06.2017. So the services offered by the applicant are covered by Sl.no. 10 of notification no. 11/2017-Central Tax (Rate) dated 28.06.2017 i.e., 'Rental Services of transport vehicles'.
Charge of GST on rental services - HELD THAT:- In terms of notification no. 11/2017-Central Tax (Rate) dated 28.06.2017 as amended by notification no. 20/2017- Central tax (Rate) dated 22.08.2017, notification no. 31/2017- Central tax (Rate) dated 13.10.2017, notification no. 20/2019- Central tax (Rate) dated 30.09.2019, wherein Sl.no. 10, (i) Rental Services of transport Vehicles (Heading 9966) attracts GST at the rate of 2.5% or 6% or 9% CGST. Identical rate would be applicable for SGST also, taking the effective rate to 5% or 12% or 18% - However, the rate of 5% is subject to the condition that the cost of fuel is included in the consideration charged from the service recipient and the credit of input tax charged on goods and services used in supplying the service other than the input tax credit of input service in the same line of business has not been taken.
Applicability of FORM GSTR-9C - HELD THAT:- The applicant's question doesn't fall under any of the clauses mentioned under sub section 97(2).
The rate of tax on the rental services where the cost of fuel is included in the consideration charged from the service recipient is 5% / 12%subject to satisfying the conditions as prescribed under notification no. 11/2017 - CT (Rate) dated 28.06.2017 as amended by notification no. 20/2017-CT ( Rate) dated 22.08.2017, notification no. 31/2017- Central tax (Rate) dated 13.10.2017, notification no. 20/2019-Central tax (Rate) dated 30.09.2019 - In case, the said conditions are not satisfied, the rate of GST is 18% (9% CGST+9% SGST) and the applicant being the provider of rental service has to pay the said tax - The applicability of GSTR-9C cannot be answered as per Section 97(2).
-
2020 (7) TMI 409 - AUTHORITY FOR ADVANCE RULING, ANDHRA PRADESH
Valuation - HSD Oil issued free of cost by the service recipient to the applicant - includible in the value of supply of service or not - HELD THAT:- In the instant case, the service recipient i.e., M/s. Sree Jayajyothi Cements Private Limited is providing diesel to the equipments and vehicles used by the applicant for executing the mining contracts at different places stipulated in the work order. Diesel so provided by the service recipient to the applicant for use in the equipments and vehicles of the applicant forms an important and integral component of this business process, without which the process of excavation of limestone at different mines, transportation and delivery of Limestone to Yanakandla Limestone Hopper belonging to the recipient - As per Section 15 (2) (b) of CGST Act, the value of supply includes any amount that the supplier is liable to pay in relation to such supply but which has been incurred by the recipient of the supply and not included in the price actually paid or payable for the goods or services or both.
Any amount that the supplier is liable to pay in relation to such supply but which has been incurred by the recipient of the supply and not included in the price actually paid or payable for the goods or services or both is includible in value.
-
2020 (7) TMI 408 - AUTHORITY FOR ADVANCE RULING, ANDHRA PRADESH
Classification of goods - Tamarind Seed - taxable at Nil Rate under HSN Code 1209 (Forest Trees Seed) or not - HELD THAT:- The appellant at the time of Personal Hearing admitted that the tamarind seed/kernel as traded by them is sold to Millers and meant for commercial /industrial purpose. Moreover no certificate or any other document certifying the tamarind kernel/ seed meant for sowing purpose is submitted by the applicant. Coming to the classification issue, CBIC in its FAQs published on HSN code and GST Rates dt: 03.08.2017 gave a clarification that tamarind kernel falls under HSN Code 1207.
As per the powers vested in the Governor of Andhra Pradesh vide section 28-G of the Andhra Pradesh Forest Act 1967, (Act 1 of 1967) in its application to the scheduled Areas in the Andhra Pradesh made A.P. preservation of Private Forest Rules, 1978 - “Chinta” is the Local name of Tamarind. Therefore, as per the Indian forest Act, 1927 and the Andhra Pradesh forest Act, 1967, Tamarind Tree is declared as forest tree. According to the Andhra Pradesh preservation of Private forest rules, 1978, a Product or a tree specified in the schedules to the Rules, whether those are produced in forest area or other than forest area, all rules and regulations are applicable as if those are forest products.
Tamarind trees are forest trees. Seeds of Tamarind trees are nothing but seeds of forest trees which Tamarind seed is classified under HSN code 1207 and attracts tax rate of 5%.
-
2020 (7) TMI 407 - AUTHORITY FOR ADVANCE RULING, ANDHRA PRADESH
Classification of goods - Tamarind Seed - taxable at Nil Rate under HSN Code 1209 (Forest Trees Seed) or not - HELD THAT:- The appellant at the time of Personal Hearing admitted that the tamarind seed/kernel as traded by them is sold to Millers and meant for commercial /industrial purpose. Moreover no certificate or any other document certifying the tamarind kernel/ seed meant for sowing purpose is submitted by the applicant. Coming to the classification issue, CBIC in its FAQs published on HSN code and GST Rates dt: 03.08.2017 gave a clarification that tamarind kernel falls under HSN Code 1207.
As per the powers vested in the Governor of Andhra Pradesh vide section 28-G of the Andhra Pradesh Forest Act 1967, (Act 1 of 1967) in its application to the scheduled Areas in the Andhra Pradesh made A.P. preservation of Private Forest Rules, 1978 - “Chinta” is the Local name of Tamarind. Therefore, as per the Indian forest Act, 1927 and the Andhra Pradesh forest Act, 1967, Tamarind Tree is declared as forest tree. According to the Andhra Pradesh preservation of Private forest rules, 1978, a Product or a tree specified in the schedules to the Rules, whether those are produced in forest area or other than forest area, all rules and regulations are applicable as if those are forest products.
Tamarind trees are forest trees. Seeds of Tamarind trees are nothing but seeds of forest trees which Tamarind seed is classified under HSN code 1207 and attracts tax rate of 5%.
-
2020 (7) TMI 406 - AUTHORITY FOR ADVANCE RULING, ANDHRA PRADESH
Classification of supply - supply of goods or supply of services - supply of print on flex - whether under HSN 4911 under entry no 132 of Schedule II of Notification 1/2017- CTR - supply of print on flex non commercial purpose, classifiable under HSN 4911 under entry no 132 of Schedule II of Notification 1/2017- CTR or not - HELD THAT:- The applicant in the instant case is engaged in supply of printed flex material and the raw materials of the goods in questions are completely procured by the applicant himself. Immaterial of the fact that whether the content is supplied by the customer or it is designed by the applicant himself basing on the requirement of the customer, the applicant transfers the title in the goods i.e., printed material on flex to the customer - the applicant is transferring the title in goods to his customers in the form of printed flex material and it amounts to nothing but supply of goods only.
Rate of tax of the goods - HELD THAT:- The supply of print on flex is classifiable vide Notification No.1/2017 - Central Tax (Rate) dated 28.06.2017 under Sl.No.132 under HSN code 4911 and attracts tax rate of 12%. Further, the same has been clarified in detail vide the clarification issued under F.No.354/263/2017 - TRU, Dt: 20th October, 2017 in Circular No.11/11/2017-GST.
Whether supply of print on flex non-commercial purpose is also classifiable under HSN 4911 under entry no 132 of Schedule II of Notification 1/2017- CTR? - HELD THAT:- The applicant did not submit any specific details pertaining to the question that what would constitute commercial / Non-Commercial in the context of trade as mentioned by him. Nevertheless, the supplier of the goods i.e., applicant in this context shall levy and collect tax from the recipients for the taxable supplies made by him as per the classification of the goods and tax rates as specified in the notifications of the CGST / APGST Act 2017 from time to time as amended.
-
2020 (7) TMI 405 - AUTHORITY FOR ADVANCE RULING, ANDHRA. PRADESH
Government authority/ Government Entity or not - contract with APSPDCL, relating to “System improvement project works for erection of indoor sub stations at Vijayawada and GIS Indoor Sub-station at Guntur and their connected lines on semi turkey basis under IPDS Scheme - applicable rate of GST - Valuation - RA bills issued on cost recovery basis - HELD THAT:- The Applicant Contractees i.e. APSPDCL and AEPDCL are Government Companies i.e. wholly owned by the Government of Andhra Pradesh. When a copy of Audited Annual Accounts of M/s APSPDCL and APEPDCL are examined, it is evident from the schedule of Equity Share Capital of the Annual Statement that 100% share capital is held by the Government of Andhra Pradesh in the name of Honourable Governor of Andhra Pradesh. Thus, based on the facts, it is concluded that the Government of Andhra Pradesh is having full control over the APSPDCL and APEPDCL and they are covered under the definition of Government Entities.
In the instant case, the contract entered by the applicant falls under the works contract and falls under entry no. (ii) of S.No.3 of the table of Notification No. 11/2017 - Central Tax (Rate), Dated: 28th June 2017 as amended from time to time and corresponding notifications under APGST Act, 2017, and the applicable rate of tax is 18% - The applicant stated that they are receiving materials such as Power Transformers, loo Sqmm Conductor & Station Transformer from the Contractee and the value of such materials is recovered from their RA bills issued on cost recovery basis by the Contractee.
Applicability of Reverse Charge Mechanism - HELD THAT:- As seen from the said Notification, reverse charge is not applicable to the goods issued by a Contractee. However, the provisions of Section 15(2)(b) of CGST Act, 2017 which as follows, attract in such situations.
Since APSPDCL and APEPDCL being the Contractees are recovering the cost of the materials that are used/consumed in the services provided to them by the applicant from the R.A. Bills issued, such cost recovered is to be included in the taxable value of the supply.
-
2020 (7) TMI 404 - DELHI HIGH COURT
Prayer for already sanctioned Central Goods and Service Tax component of the provisional refund amount and to refund the balance amount to the petitioner - Circular No.125/44/2019 GST dated 18th November, 2019 - HELD THAT:- The writ petition is disposed of with a direction to the respondent No.2 to pay ₹ 17,59,780/- as well as respondents No.3-4 to pay ₹ 17,59,780/- within a period of one week.
Application disposed off.
-
2020 (7) TMI 390 - AUTHORITY FOR ADVANCE RULING, ANDHRA PRADESH
Exemption from payment of GST - Renting of accommodation service - Residential property or commercial property - monthly rentals received by her on lease of her residential building at Telangana to D-Twelve Spaces Private Limited - exemption under SI.No.13 of the Notification No. 9/2017 Dt:28-6-2o17 - HELD THAT:- Reading the lease agreement (Exhibit-2) and “Residents Enrolment Form” (Exhibit- 3) together and also taking note of the various observations made above, it appears that apart from renting of the rooms, the inmates are also being provided with food and hospitality services. As verified from the records, the lessee is a registered Taxable Person - Though the applicant claims that she has rented out residential dwelling for use as residence, it appears that the premise is a non-residential property. Considering the number of rooms and amenities provided in it, boarding and hospitality services extended to the inmates and all the clauses of the agreements discussed above, it appears that the building was constructed for the purpose of running a lodge house. It is clear that the lessee is engaged in commercial activity of renting of rooms in the dwelling and providing boarding and hospitality services to the inmates.
The lessor has rented out her dwelling for commercial activity, and supply of such services, in the facts and circumstances of the case, are classifiable as “Rental or leasing services involving own or leased non-residential property” under Service Code (Tariff) 997212. It is taxable in the hands of the lessor and is liable for IGST at the rate of 18 percent.
-
2020 (7) TMI 381 - AUTHORITY FOR ADVANCE RULING, ANDHRA PRADESH
Classification of Services - rate of tax - applicant agreed for construction work namely “Construction of Building for Office space/IT space at IT park, Mangalgiri as awarded by APIIC - composite supply of works contract - Governmental Authority/entity or not - construction work taken up by the applicant is meant for business or otherwise.
Whether APIIC which awarded construction work to the applicant would qualify for a Governmental Authority/entity or not? - HELD THAT:- Andhra Pradesh Industrial Infrastructure Corporation Ltd. (APIIC) was formed in 1973 by the GO No: 831 dated 10-SEP-1973 issued by Government of Andhra Pradesh. As seen from the share holding ratios of the 41st Annual Reports for the years 2013-14 as made available by APIIC website, the Government of Andhra Pradesh including its nominees is having 100% of share holding and thus it is covered under the definition of 'Government Entity' under the above said provisions. Therefore, we conclude that M/s APIIC is a “Government Entity” for the purpose of GST matters.
Whether the construction work in which the applicant is engaged in is meant for any business or otherwise? - HELD THAT:- As seen from the 41st Annual Report for the year 2013-14 as made available by APIIC in their website https://www.apiic.in/Annualreports.html, they are engaged in land acquisition and development and allotment of plots and sheds to various industrial ventures in the State making investments in joint venture, in associate companies , in related party companies, in subsidiary companies etc., and the income they are getting is revenue from operations like sale of land, houses, interest on hire purchase and long term borrowings etc. - It is evident from the above statement that the activities of M/s APIIC are business activities and not otherwise. Moreover, the applicant did not provide any information or documentary proof evidencing that the construction/ building is for use other than for commerce, industry, or any other business or profession to be eligible for concessional rate of 12% available under Notification No.24/2017 - CT (Rate) dated 21.09.2017.
The contract entered by the applicant is classifiable under SAC Heading No. 9954 under construction services, and it falls under entry no (ii) of serial No.3 of notification no. 11/2017 Central Tax (Rate) dated 28.06.2017 i.e., Composite Supply of Works Contract as defined in clause 119 of Section 2 of Central Goods and Services Act, 2017 and the applicable rate of tax is 18%.
-
2020 (7) TMI 380 - AUTHORITY FOR ADVANCE RULING, ANDHRA PRADESH
Liability of GST - medicines supplied to In-patients through pharmacy - medicines, drugs, stents, implants etc administered to in-patients during the medical treatment or procedure - HELD THAT:- Applicant renders health care services to in-patients in the form of supply of medicines, drugs, stents, implants etc being administered during the medical treatment or procedure - Primarily the health care services provided by the applicant are exempt under Sl.No. 74 Heading 9993 vide Notification No 12/2017 - Central Tax (Rate) Date: 28.06.2017.
The health care services as explained in (zg) of para 2 of Notification no. 12/2017 - Central Tax (Rate) Date: 28.06.2017, defines service by way of diagnosis, or treatment or care for illness, injury, deformity, abnormality or pregnancy in any recognised system of medicines in India. In common parlance, when one looks into the definition, 'the treatment or care' extended by hospital can be thought of devoid of medicines, relevant consumable, or implants, by no stretch of imagination. The supply of medicines and the consumables are integral part of the treatment extended to the in-patients by the hospital - the services rendered by the applicant is a composite supply as defined under section 2(30) of CGST Act, 2017 in which the principal supply is health care, being predominant and the supply of medicines, drugs, implants, stents, and other consumables, come under ancillary supplies and accordingly tax liability has to be determined under section 8 of CGST Act, 2017.
Even the Circular No.32/06/2018-GST (F.No.354/17/2018-TRU) date: 12.02.2018 released on the approval of the CGST council 25th meeting clarifies the issue on the similar lines stating that the food supplied to in-patients is part of composite supply of health care and not separately taxable, whereas other supplies of food by a hospital to patients (not admitted) or their attendants or visitors are taxable - the same principle is applicable to the medicines, drugs, stents, implants etc administered to in-patients during the medical treatment or procedure.
Thus, the supply of medicines supplied to In-patients through pharmacy are not liable to tax, being a part of the composite supply of health care services under SI.No. 74 Heading 9993 vide Notification No 12/2017 - Central Tax(Rate) Date: 28.06.2017 which are nil rated - medicines, drugs, stents, implants etc administered to in-patients during the medical treatment or procedure are not liable to tax.
-
2020 (7) TMI 379 - AUTHORITY FOR ADVANCE RULINGS, ANDHRA PRADESH
Governmental Authority or not - undertaking drinking water supply projects in Anantapur District, Andhra Pradesh - exemption from the GST by virtue of Entry 3 in Notification 12/2017 (Rate), dt: 28.06.2017 - requirement of remission of GST to its suppliers for any services it procures by virtue of its activities of supplying water for domestic purposes.
Governmental Authority or not - HELD THAT:- The applicant is not set up by an Act of Parliament or a State Legislature - applicant is constituted by the Government i.e., the State of Andhra Pradesh under G.O. Ms No. 344 dated: 16.09.1997 - The Board of the applicant i.e., “Sri Satya Sai Water Supply Project Board” consists of 9 Members, out of which 7 are officers /Employees of the Government of Andhra Pradesh that qualifies for 77% of Government control falling short of the designated 90% as required by the Act. Even the cost of the operation and maintenance of the water supply scheme is contributed at a ratio of 70% by the State Government, while 30% of the cost is being borne by the applicant from the water charges collected from the users - In the instant case the applicant falls short of the qualifying mark of 90% in terms of equity or control. Hence the applicant does not fit in the category of “Governmental authority”.
Thus availment of exemption for the services received by the applicant by virtue of SI.No. 3 of Notification No 12/2017 - Central Tax (Rate), dt: 28.06.2017 does not arise in this context.
Taxability of the services procured by the applicant from its Contractor M/s. Larsen & Toubro Limited, Water Supply & Distribution Business Unit, Water & Effluent Treatment IC - HELD THAT:- The Contractor is responsible for the “Operation and Maintenance” of the plant such as engaging of labour, supervisors to oversee the labour and managers for overall supervision along with amenities, tools & tackles provided for all the above personnel like vehicle, office establishment etc., while the applicant would ensure uninterrupted power supply and supply of material /spares as and when necessitated by the Contractor. Thus the services provided by the Contractor are pure services of “Operation and Maintenance” of plant devoid of any supply of material or goods in the due process. The services under question fall under SI.No. 25, Heading 9987 “Maintenance repair and installation (except construction) Services” attracting tax rate of 18% under Notification 11/2017- Central Tax (Rate) dt: 28.06.2017.
-
2020 (7) TMI 378 - AUTHORITY FOR ADVANCE RULING, ANDHRA PRADESH
Classification of supply - supply of goods or not - transaction of printing of content provided by the customer, on poly Vinyl Chloride banners and supply of such printed trade advertisement material - classification of such trade advertisement material if the transaction is a supply of goods - Applicability of TRU Circular No. 11/11/2017-GST dated 20.10.2017.
Whether the transaction of printing of content provided by the customer, on poly Vinyl Chloride banners and supply of such printed trade advertisement material is supply of goods? - HELD THAT:- The applicant in the instant case takes up the supply of trade advertising material by procuring the required raw materials such as poly vinyl, flex, paper, cloth printing inks etc., all by themselves based on specification provided by the client in terms of design, size and material. In-fact, the applicant transfers the title in the goods i.e., printed material on flex to the customer - From the plain reading of Section 7 of CGST Act, 2017 read with Schedule - II Sl.No. 1(a) of CGST Act, 2017, it is obvious that the applicant is transferring the title in goods to his customers in the form of trade advertising material and it constitutes supply of goods only.
Rate of tax - Classification of goods - HELD THAT:- The trade advertising materials is classifiable vide Notification No.1/2017 - Central Tax (Rate) dt: 28.06.2017 under S1.No.132 under HSN code 4911 and attracts tax rate of 12% - Further, the same has been clarified in detail vide the clarification issued under F.No.354/263/2017-TRU, Dt: 20th October, 2017 in Circular No.11/11/2017-GST.
-
2020 (7) TMI 377 - AUTHORITY FOR ADVANCE RULING, ANDHRA PRADESH
Classification of services - Rate of GST - Works Contract Service - construction of Millennium tower at Madhurawada, Visakhapatnam for information Technology and Communication Department, Government of Andhra Pradesh and through Nodal Agency APIIC - whether refund to be submitted in RFD-01? - Government Entity or otherwise.
Whether M/s. APIIC is a Government Authority / Entity or otherwise? - HELD THAT:- Andhra Pradesh Industrial Infrastructure Corporation Ltd. (APIIC) was formed in 1973 by the GO No: 831 dated lo-SEP-1973 issued by Government of Andhra Pradesh. As seen from the share holding ratios of the 41st Annual Reports for the years 2013-14 as made available by APIIC website, the Government of Andhra Pradesh including its nominees is having 100% of share holding and thus it is covered under the definition of 'Government Entity' under the above said provisions. Therefore, M/s APIIC is a “Government Entity” for the purpose of GST matters.
Classification of Service and rate of tax - HELD THAT:- As seen from the Agreement, the applicant agreed for construction of Millennium tower at Madhurawada, Visakhapatnam for information Technology and Communication Department, Government of Andhra Pradesh and through Nodal Agency APIIC, which includes procurement and supply of goods and services, for agreed consideration. The activity of construction includes both supply of goods and also services - The composite supply of works contract under Section 2 (119) of CGST Act, 2017 / APGST Act, 2017 is treated as supply of service in terms of Serial No.6 (a) of Schedule II of CGST Act '2017 / APGST Act, 2017 - The Government of India, vide notification No. 11/2017 - Central Tax (Rate), dated -28th June 2017 notified the rate of GST applicable on supply of services. Under this notification for heading 9954 the applicable rate of GST is 9%.
The applicant is engaged in Construction work for Millennium Tower at Plot No.16& 17 (in 4.00 Acres) at Hill No.3. Madhurawada, Visakhapatnam District through Nodal agency APIIC, which is meant for undertaking development of EMC's/IT Parks/IT SEZs/ IT Layouts, for coordinating with necessary Government agencies and provide basic infrastructure like power, water, sewerage, access roads to the doorsteps of the proposed EMCs/IT Parks/ IT SEZs/ IT Campuses. APIIC has also been nominated as Industrial Area Local Authority (IALA) in Madhurawada IT layout for undertaking provision & maintenance of Infrastructure facilities.
Whether the construction work in which the applicant is engaged in is meant for any business or otherwise? - HELD THAT:- The activities of M/s AMC are business activities and not otherwise. The applicant informed that the said construction is for accommodating Small and Medium Enterprises (SMEs) and Startups. Moreover, the applicant did not provide any information or documentary proof evidencing that the construction/ building is for use other than for commerce, industry, or any other business or profession to be eligible for concessional rate of 12% (6% CGST + 6% SGST) available under Notification No.24/2017 - CT (Rate) dated 21.09.2017.
The contract entered by the applicant is classifiable under SAC heading No. 9954 under construction services, and it falls under entry no (ii) of serial No.3 of notification no. 11/2017 Central Tax (Rate) dated 28.06.2017 i.e., Composite Supply of Works Contract as defined in clause 119 of Section 2 of Central Goods and Services Act, 2017 and the applicable rate of tax is 18%.
-
2020 (7) TMI 376 - AUTHORITY FOR ADVANCE RULING, ANDHRA PRADESH
Rate of GST - tobacco leaves procured at tobacco auction platforms or directly from farmers, which are cured and dried by farmers themselves - purchase of tobacco leaves form other dealers who have purchased them from farmers, for the purpose of trading - seggregation of tobacco into grades depending upon their size (width), colour /shade, length, texture of the leaf etc., and sells such graded tobacco leaf - tobacco leaves are butted and sold to other dealers - tobacco leaves re-dried without getting them threshed and sold - tobacco leaves threshed and re-dried - tobacco threshed and re-dried on job work basis at others' premises and then sells such threshed and re-dried tobacco leaves to others.
HELD THAT:- The transactions of tobacco from auction platform to the supply made to the exporter are to be interpreted in the light of the relevant notifications and to decide the rate of tax accordingly. As seen from the different stages of commodity i.e., from the leaves stage to the final product (manufactured tobacco), the green leaf plucked from the plant undergoes different types of curing to reduce the level of moisture to the maximum extent for sustainability and to continue as leaf for further process. The tobacco leaf will be entitled as a commercial commodity only drying (Curing) and normally put to trade in form of bundles. The same will be traded between the farmer and the trader and trader to trader/manufacturer and so on. As envisaged from the entries under GST, there are four different entries for tobacco, one under Schedule-I. Liable @5% (CGST 2.5% and SGST 2.5%) and the remaining heads are in Schedule- IV liable 28% - And there is an entry of tobacco leaves under Reverse charge mechanism also.
The commodity “tobacco leaves” shall be interpreted in the light of the entry 109, Schedule- I of Notification No.1/2017-Central Tax (Rate) and the entry no 3 inserted under the notification 4/2017-CGST (Rate) issued for liability under reverse charge mechanism and the relevant HSN code mentioned against the description of the commodity i.e., 2401.
As observed from the facts, i.e process of tobacco, from the field to final product, the green leaves undergo curing process, and become eligible commercial commodity, for which the transaction takes place in between the farmer and the trader on the auction platform. Further, as per the clarification issued by The Department TRU(Tax Research Unit)vide circular F.No.322/2/2017/Dec.2017, “Tobacco Leaves” means, leaves of tobacco as such or “broken leaves” or “Tobacco Leaves stems”. It clearly expresses that the leaves as long as they do not loose their basic character as 'leaves', shall be considered as tobacco leaves only - In the present case the applicant purchases the dried leaves on auction platform and trades the same to other dealers or exporters and further engaged in threshing and re-drying of tobacco leaves on job work basis for other traders or manufacturers.
Rate of GST on tobacco leaves (butted or re-dried) is 5% - Rate of GST will be 28% if the applicant gets the tobacco leaves threshed and re-dried.
-
2020 (7) TMI 375 - PUNJAB AND HARYANA HIGH COURT
Constitutional validity of Section 16(2)(C) of the CGST Act, 2017 and Rule 86A of the CGST Rules, 2017 - ITC credit blocked - supplier/seller does deposit the tax collected from the purchaser, over which the bonafide purchaser has no control - HELD THAT:- List on 14.07.2020 for interim directions.
|
