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GST - Advance Ruling Authority - Case Laws
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2022 (10) TMI 862
Classification of supply - applicable rate of GST - supply of goods or supply of services - activity of commercial vehicle's body building on job work basis, on the chassis supplied by the customer - HELD THAT:- The applicant is collecting the charges for the activity which includes the cost of inputs / material used by the applicant and the labour charges for fabrication of the body. Thus it is evident that the applicant is fabricating body on the chassis belonging to the customer. The ownership of the chassis remains with the customer and at no stage of the process of fabrication of the body, the title of the chassis is transferred to the applicant. Therefore, the applicant is fabricating the body on the chassis belonging to another person and hence the activity is squarely covered under Para 3 of Schedule Il of the CGST Act, 2017 as a treatment or process which is applied to another person's goods and accordingly is a supply of services.
The Explanatory Notes to the Scheme of Classification of Services states that the services included in the Heading 9988 - Manufacturing services on physical inputs owned by others are services performed physical inputs owned by units other than the units providing the service. As such, they are characterized as outsourced portions of a manufacturing process or a complete outsourced manufacturing process. This Heading covers manufacturing services in which the output is not owned by the unit providing this service. Therefore, the value of the services in this Heading is based on the service fee paid, not the value of the goods manufactured. SAC - 99888 under Heading 9988 pertains to Transport equipment manufacturing services and Sub - Heading 998881 pertains to Motor vehicle and trailer manufacturing services. Therefore, the activity of the applicant as discussed above is appropriately classifiable under Service Accounting Code 998881.
The activity is liable to GST at the rate of 18% as per entry at Sl No, 26 (iv) - 9988 - "Manufacturing services on physical inputs (goods) owned by others - Manufacturing services on physical inputs (goods) owned by others, other than (i), (ia), (ib), (ic), (id), (ii), (iia) and (iii) above" of Notification No, 11/2017 Central Tax (Rate) dated 28.06.2017.
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2022 (10) TMI 861
Classification of services - rate of GST - works contract service provided to Malabar Cancer Centre - Government Entity or not - to be billed at 12% GST or to be billed at 18% GST? - HELD THAT:- The concessional rate of GST prescribed under the above entry is applicable to the supply of specified work contract services provided to Central Government or State Government or Local Authority or Governmental Authority or Government entity. The specified works contract services are supply by way of construction, erection, commissioning, installation, completion, fitting out, repair, maintenance, renovation, or alteration of (i) a civil structure or any other original works meant predominantly for use other than for commerce, industry, or any other business or profession or (ii) a structure meant predominantly for use as an educational, a clinical, or an art or cultural establishment or (iii) a residential complex predominantly meant for self-use or the use of their employees or other persons specified in paragraph 3 of the Schedule III of the CGST Act - the conditions to be fulfilled for a supply to be eligible for the concessional rate under the above entry are; (i) the supply must be a composite supply of works contract as defined in clause (119) of section 2 of the Central Goods and Services Tax Act, 2017; (ii) the supply must satisfy any of the specified descriptions and (iii) the supply must be provided to the Central Government or State Government or Local Authority or Governmental Authority or Government entity.
Whether the service rendered by the applicant falls under the category of works contract service as per the CGST Act? - HELD THAT:- The term works contract under GST is restricted to contract for construction, fabrication etc of any immovable property. The facts submitted by the applicant reveals that the applicant had entered into an agreement with Malabar Cancer Centre for the construction and extension of site and building. Hence the service rendered by the applicant falls under the ambit of definition of works contract under the CGST Act.
Whether the supply of works contract services fall under any of the specified descriptions mentioned in the above entry? - HELD THAT:- The term "clinical establishment" is defined in Para 2 (s) of Notification No. 12/2017 Central Tax (Rate) dated 28.06.2017 as "clinical establishment" means a hospital, nursing home, clinic, sanatorium or any other institution by, whatever name called, that offers services or facilities requiring diagnosis or treatment or care for illness, injury, deformity, abnormality or pregnancy in any recognized system of medicines in India or a place established as an independent entity or a part of an establishment to carry out diagnostic or investigative services of diseases.
Whether Malabar Cancer Centre is a governmental authority or a government entity? - HELD THAT:- Malabar Cancer Centre is a society established by the State Government with 100 per cent participation by way of equity or control, to carry out the function of public health a function entrusted to a municipality as well as a panchayat under Article 243W and Article 243G respectively of the Constitution and accordingly falls within the definition of governmental authority under Para 4 (ix) of Notification No. 11/2017 Central Tax (Rate) dated 28.06.2017.
The services rendered by the applicant to Malabar Cancer Centre as detailed in the application are eligible for the concessional rate of tax of 12% prescribed in the entry at SI No. 3(vi) of Notification No. 11/2017 Central Tax (Rate) dated 28.06.2017 as Malabar Cancer Centre is a governmental authority as per definition of governmental authority in Para 4 (ix) of Notification No. 11/2017 Central Tax (Rate) dated 28.06.2017.
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2022 (10) TMI 860
Classification of supply - pure service or work contract services - geotechnical investigation and preparation of foundation recommendation (soil report preparation) for civil works or infrastructure construction works - preparation of detailed project report (DPR) related to civil works/infrastructure construction works - architectural and engineering design for civil works/infrastructure works - project management services for civil works or infrastructure construction works - HELD THAT:- It is revealed that the services rendered by the applicant are geotechnical investigation and preparation of foundation recommendation (soil report preparation), architectural and engineering design, preparation of detailed project report (DPR), project management services for civil works or infrastructure construction works - the activity of geotechnical investigation and preparation of foundation recommendation (soil report preparation), preparation of detailed project report, architectural and engineering design and project management services for civil works or infrastructure construction works undertaken by the applicant are services that are appropriately classifiable under Heading 9983 - Other professional, technical and business services of the Scheme of Classification of Services notified as Annexure to Notification No. 11/2017 Central Tax (Rate) dated 28.06.2017 and is liable to GST at the rate of 18% as per entry at SI No. 21 (ii) of Notification No. 11/2017 Central Tax (Rate) dated 28.06.2017.
Whether the services rendered by the applicant to Rebuild Kerala, Kerala State Public Works Department and HLL Infratech Services Ltd are eligible for exemption under entry at SI. No. 3 of Notification No. 12/2017 Central Tax (Rate) dated 28-06-2017 as claimed by them? - HELD THAT:- The applicant is rendering services to Rebuild Kerala which is an initiative of the Government of Kerala to build sustainable and resilient roads and allied structures that are scientifically designed for efficiency of transport and accordingly the services rendered to Rebuild Kerala are to the Government of Kerala itself - As stated by the applicant the services rendered by them are in relation to the construction of bridges, roads, schools etc. and hence are activities in relation to any function entrusted to a Panchayat under Article 243 G of the Constitution or to a Municipality under Article 243 W of the Constitution.
The services supplied by the applicant to Rebuild Kerala and Public Works Department are eligible for exemption as per the entry at SI. No. 3 of Notification No. 12/2017 Central Tax (Rate) dated 28-06-2017 being pure services provided to State Government by way of any activity in relation to any function entrusted to a Panchayat or Municipality under Article 243 G or Article 243 W of the Constitution.
M/s HLL Infratech Services Ltd is a Public Sector Undertaking under the administrative control of the Ministry of Health and Family Welfare, Government of India and as such, they are neither Central Government nor a State Government. Hence the services supplied by the applicant to M/s HLL Infratech Services Ltd are not eligible for exemption under entry at SI. No. 3 of Notification No.12/2017 Central Tax (Rate) dated 28-06-2017 as exemption under the entry is available only for the specified services provided to the Central Government or State Government or Union territory or local authority - the services rendered by the applicant in respect of the projects in question Nos. 3.1 to 3.4 above to Rebuild Kerala and Public Works Department are covered under the exemption under SI No. 3 of the Notification No.12/2017 Central Tax (Rate) dated 28-06-2017 and the services rendered by the applicant to M/S HLL Infratech Services Ltd are not covered under the said exemption.
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2022 (10) TMI 859
Levy of GST - marine engines, being the part of a fishing vessel - applicability of Entry Serial No.252 of Schedule I of Notification No.1/2017 CT(R) dated 28.06.2017 & State Notification No. S.R.O. 360/2017 - HELD THAT:- In order to classify the products, the provisions of Notification No 01/2017 Central Tax (Rate) dated 28.06.2017 are to be verified. As per entry at SI No. 114 of Schedule IV of Notification No. 01/2017 Central Tax (Rate) dated 28.06.2017, the marine engines imported by the applicant are classified under Customs Tariff Heading 8407 21 00 -Outboard motors - Marine Propulsion engines - Spark-ignition reciprocating or rotary internal combustion piston engines and attracts GST at the rate of 28%. Fishing vessels, factory ships and other vessels for processing or preserving fishery products fall under Customs Tariff Heading 8902 and are liable to GST at the rate of 5% as per SI No. 247 of Schedule I of Notification No. 01/2017 Central Tax (Rate) dated 28.06.2017. However, as per entry in SI No. 252 of Schedule I of Notification No. 01/2017 Central Tax (Rate) dated 28.06.2017 parts of goods of headings 8901, 8902, 8904, 8905, 8906, 8907 falling under any chapter of the Customs Tariff attracts GST at the rate of 5%. Therefore, if the Marine engines are supplied for use as part of a fishing vessel falling under Customs Tariff Heading 8902, then the marine engine as part of a fishing vessel will only attract GST at the rate of 5% as per the entry in SI No. 252 of Schedule I of Notification No. 01/2017 Central Tax (Rate) dated 28.06.2017.
As per entry in SI No. 252 of Schedule I of Notification No. 01/2017 Central Tax (Rate) dated 28.06.2017 it is notified that parts of goods of headings 8901, 8902, 8904, 8905, 8906, 8907 falling under any chapter of the Customs Tariff attracts GST at the rate of 5%. Therefore, if the marine engines are supplied for use as part of a fishing vessel falling under Customs Tariff Heading 8902, then the marine engine as part of a fishing vessel will only attract GST at the rate of 5%. as per entry at SI No. 252 of Schedule I of Notification No.01/2017 Central Tax (Rate) dated 28.06.2017. If it is supplied for use other than as parts of fishing vessels as stated, GST at the rate applicable under the respective Customs Tariff Headings in which they are classified will apply.
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2022 (10) TMI 858
Exemption from GST - Works contract - composite supply - annuity amount received is exempted or not as it contains both construction and maintenance parts (which are inseparable) as per entry No. 23A of the Notification No. 12/2017 Central Tax (Rate) dated 28.06.2017 - eligibility for an early completion bonus as the construction is completed before the scheduled date - Whether this bonus will also be exempted as it is the part and parcel of the principal project?
HELD THAT:- As per the terms and conditions of the concession agreement, the applicant as the concessionaire is designing, constructing, operating and maintaining the roads under Phase 1 (A) of the KCRIP during the concession period and transferring it to the Government on completion of the concession period. The entire project is financed by the applicant and the cost of the construction, operation and maintenance is recovered by the applicant by way of bi-annual annuity payments as per the terms and conditions of the concession agreement for 15 years. On completion of the payment of the cost of construction and maintenance for 15 years through bi-annual annuity as fixed by the agreement, the road is transferred to the Government - it is evident that the services provided by the applicant as per the concession agreement are covered under the definition of works contract under Section 2 (119) of the CGST Act, 2019 and the bi-annual annuity received by the applicant as per the concession agreement can be considered as the consideration for the works contract services supplied by the applicant given the definition of “consideration” in Section 2 (31) of the CGST Act, 2017.
The service rendered by the applicant as per the concession agreement is a continuous supply of works contract services and the annuity is in sum and substance the consideration for the works contract services rendered. Since the cost of construction is initially financed by the applicant the applicant is granted a concession to operate and maintain the roads for 15 years during which the entire consideration is paid to the applicant and on completion of the concession period the road is transferred to the Government. Therefore, the transfer of goods involved in the execution of the works contract happens at the time of transfer of the roads to the Government as per the concession agreement and accordingly the completion of the work contract service takes place on the date of transfer of the roads to the Government - the supply is deemed to have been made on each annuity payment date to the extent covered by the payment of annuity and the applicant is liable to raise tax invoice as per provisions of sub -section (5) of Section 31 and pay GST on the annuity received by them on each annuity payment date by the due date prescribed as per provisions of Section 39 of the CGST Act, 2017.
Thus, the services rendered by the applicant as per the concession agreement are classifiable as works contract services falling under SAC 995421 and the annuity received by the applicant including the bonus for early completion of construction is the consideration for the works contract services rendered and the applicant is liable to pay GST at the rate of 12% on the annuity including bonus as per entry at S1 No. 3 (iv) of Notification No. 11/2017 - Central Tax Rate) dated 28.06.2017 as amended.
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2022 (10) TMI 857
Classification and applicable rate of GST - outboard motors pertaining to HS Code 8407 and its spare parts as per Entry in Schedule I, Sl. No. 252 of GST Act, 2017 dated 28.06.2017 - GST rate of 28% shown in Schedule IV Sl. No.114 is applicable for sales made by the applicant or not - applicability of clarification issued vide Circular No.52/26/2018-GST - HELD THAT:- The Outboard motors imported by the applicant are classified under Customs Tariff Heading 8407 21 00 - Outboard motors - Marine Propulsion engines - Spark-ignition reciprocating or rotary internal combustion piston engines and attract GST at the rate of 28% as per entry at Sl. No. 114 of Schedule IV of Notification No. 01/2017 Central Tax (Rate) dated 28.06.2017. Fishing vessels, factory ships, and other vessels for processing or preserving fishery products fall under Customs Tariff Heading 8902 and are liable to GST at the rate of 5% as per entry at Sl. No. 247 of Schedule I of Notification No. 01/2017 Central Tax (Rate) dated 28.06.2017. However, as per entry in Sl. No. 252 of Schedule I of Notification No. 01/2017 Central Tax (Rate) dated 28.06.2017 parts of goods of headings 8901, 8902, 8904, 8905, 8906, 8907 falling under any chapter of the Customs Tariff attracts GST at the rate of 5 %. Therefore, if the Outboard motors are supplied for use as part of a fishing vessel falling under Customs Tariff Heading 8902, then OBM as part of the fishing vessel will only attract GST at the rate of 5% as per the entry at Sl. No. 252 of Schedule I of Notification No. 01/2017 Central Tax (Rate) dated 28.06.2017.
Therefore, if the Outboard motors are supplied for use as part of a fishing vessel falling under Customs Tariff Heading 8902, then OBM as part of the fishing vessel will only attract GST at the rate of 5%. as per entry at Sl. No. 252 of Schedule I of Notification No.01/2017 Central Tax (Rate) dated 28.06.2017. If it is supplied for use other than as parts of goods of headings 8901, 8902, 8904, 8905, 8906 and 8907, GST at the rate applicable under the respective Customs Tariff Headings in which they are classified will apply.
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2022 (10) TMI 856
Scope of Advance Ruling application - Application for AR filed by the association on behalf of its members - Supply or not - portion of apartments constructed by Developers and allotted to the Land Owners as part of a joint development arrangement between the Developers and the Land Owners - allotment of apartments of Land Owners by the Developers as part of a joint development arrangement - value to be adopted for the purpose of computing GST liability - time of supply - rate of GST - HELD THAT:- In the instant case the questions raised by the applicant pertains to the GST liability of the activity undertaken by the developers; who are the members of the applicant; i.e., the applicability of GST on the supplies made by third persons and not in respect of any supply undertaken or proposed to be undertaken by the applicant - the provisions of the CGST Act governing advance ruling does not provide for an applicant to seek a ruling regarding the applicability of the provisions of the Act or the notification issued there under to a third person other than the applicant.
Admittedly, the applicant has preferred this application on behalf of the members of the applicant and hence the application is not in respect of any matter specified in Section 97 (2) of the CGST Act in relation to the supply of goods or services or both being undertaken or proposed to be undertaken by the applicant. Hence this authority has no jurisdiction to issue ruling on the above question.
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2022 (10) TMI 791
Maintainability of advance ruling application - non-deposit of full amount of fee for filing advance ruling application - Classification of goods - rate of GST - Chaff Cutter Machine, which is used in cutting of chaff, hay and agriculture produce for fodder of live stocks - time of supply of machinery - HELD THAT:- The requisite fee for filling Advance Ruling application is Rs. 10,000/- (Rs. 5,000 each for CGST and SGST), but the applicant has deposited only Rs. 5,000/- under SGST Act. Despite giving multiple opportunities, the applicant has not deposited the required pending fee of Rs. 5,000 under GCST Act. Thus, the application is hereby filed without any ruling.
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2022 (10) TMI 780
Exemption from GST - training programmes offered by the applicant, as approved by NSDC would be construed under the “any other scheme implemented by the NSDC” - training programmes offered in collaboration with other business partners, imparted by business partners of the applicant under a sub contract - Entry no. 69 in Notification No. 12/2017 -Central Tax (Rate) issued by the Ministry of Finance dated 28 June 2017 - HELD THAT:- The applicant has entered into an agreement dated 23.06.2022 for partnership with NSDC for executing training under the above scheme for market led Fee-based services under non funded affiliation - the applicant is offering following training programs, as detailed in the proposal approved by the NSDC (Exhibit 5) as amended from time to time with the approval of NSDC.
The courses are being offered by the applicant as a Approved Training Partner of NSDC under the scheme for market led Feebased services under non funded affiliation mode. Thus, it is concluded that the services provided by applicant are as training partner approved by the National Skill Development Corporation and are in relation to Scheme implemented by the National Skill Development Corporation - the services offered by the applicant fall under Sl.No.69 (d) (iii) and therefore eligible for exemption under this notification for CGST and SGST.
Further, under this entry the services supplied by the applicant as approved training partner of NSDC in relation to any other scheme implemented by the NSDC as required under serial no.69 of the Notification are exempt but not the services received by the applicant from others including a sub-contractor who supplies such services to the applicant who is not a training partner approved by the National Skill Development Corporation or the Sector Skill Council.
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2022 (10) TMI 779
Classification of goods/services - rate of GST - composite supply or not - pure services or not - Design, Build, Finance, Operate and Transfer (DBFOT) of required capacity (based on total wet waste generation as on 2020 + 10%) of Municipal Solid Waste Processing facility - to be classified under Heading 9994 or not - HELD THAT:- The supply agreed to be provided by the applicant as it appears from the documents produced before us is in the nature of waste management services. It is found that ‘waste collection services’ and ‘waste treatment and disposal services’ fall under SAC 9994 having Group 99942 and 99943 respectively. Further, ‘sewage and waste collection, treatment and disposal and other environmental protection services’ is taxable @ 18% vide serial number 32 of Notification No. 11/2017-Central Tax (Rate) dated 28.06.2017, as amended from time to time (corresponding West Bengal State Notification No. 1135 F.T. dated 28.06.2017).
Whether the services to be provided by the applicant can qualify for exemption under the aforesaid entries of the exempt notification or not? - HELD THAT:- The applicability of serial number 3 of the notification which exempts pure services provided to the Central Government, State Government or Union territory or local 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. The term ‘pure services’ has not been defined under the GST Act. However, a bare reading of the description of services as specified in serial number 3 of the said notification denotes that supply of services which does not involve any supply of goods can be regarded as pure services. The scope of work requires the applicant, inter alia, to construct sanitary landfill which involves supply of goods. Further, the applicant requires to sell and dispose of bye-products, recyclable & reusable materials (fertilizers and alternative fuel) which also involve supply of packing materials. The applicant himself has declared that the work includes packaging, distribution & sales point (for fertilizers & alternative fuel. As a result, the instant supply of services fails to qualify as pure services - The tripartite agreement refers that the rate offered in the tender shall be applicable as tipping fee per ton of processing of waste (Project component includes) which includes all type of taxes & duties and GST (Fixed). The applicant, however, has not produced before us any document in support of value of goods involved in the supply. We are, therefore, unable to determine whether the value of supply of goods constitutes not more than 25 per cent. of the value of the said composite supply or not.
Whether the supply by the applicant to SUDA can be treated as a supply provided to the Central Government, State Government or local authority? - whether the same is in relation to any function entrusted to a Panchayat under article 243G or to a Municipality under article 243W of the Constitution? - HELD THAT:- The applicant has received work order for a number of municipalities in West Bengal under Swachh Bharat Mission/Mission Nirmal Bangla. The functions entrusted to a municipality under the Twelfth Schedule to Article 243W inter alia contain Public health, sanitation conservancy and solid waste management. The supply involved in the instant case is in relation to a function entrusted to a Municipality under article 243W of the Constitution.
Whether the supply to be made by the applicant can be regarded as a supply to the Central Government, State Government or local authority? - HELD THAT:- The instant supply to SUDA cannot be held as supply to the government since, it is found from the official website of State Urban Development Agency www.sudawb.org that SUDA is a registered society which was formed in the year 1991 under the aegis of erstwhile Municipal Affairs Department, Govt of West Bengal with an objective to ensure effective implementation of different development programme in urban areas of the State.
Undisputedly SUDA, being a registered society, is not a Panchayat or a Municipality or any Board or Cantonment as specified in the above-referred definition of local authority. Further, no documents have been produced wherefrom it can be established that SUDA is an authority who is legally entitled to and entrusted by the Government with the control or management of a local fund. Therefore, SUDA cannot be held as a local authority as defined in clause (69) of section 2 of the GST Act and the supply involved in the instant case thus fails to qualify for exemption vide serial number 3 or 3A of the Exempt Notification.
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2022 (10) TMI 778
Maintainability of Advance Ruling application - non-payment of requisite fee for filling Advance Ruling application - Manpower supply services - Punjab Water Supply or Sewerage Board - body of Local Authority/ Municipal Committee or not? - entry no. 6 of Twelfth Schedule of Article 243 W of Constitution of India - Serial No. 3 of Notification no. 12/2017 dated 28.06.2017 - levy of GST or not under CGST/SGST/IGST - composite supply or not - HELD THAT:- The requisite fee for filling Advance Ruling application is Rs. 10,000/- (Rs. 5,000 each for CGST and SGST), but the applicant has deposited only Rs. 5,000/- under SGST Act. Despite giving multiple opportunities, the applicant has not deposited the required pending fee of Rs. 5,000 under GCST Act. Thus, the application is hereby filed without any Advance ruling.
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2022 (10) TMI 777
Maintainability of Advance Ruling application - non-deposit of full amount of fee for filing advance ruling application - Exemption for GST - Cotton Seeds “Banaula” - Goods transported by Goods Transport Agencies (GTA) - exemption in terms of N/N. 12/2017, dated 28th June, 2017 - HELD THAT:- The requisite fee for filling Advance Ruling application is Rs. 10,000/- (Rs. 5,000 each for CGST and SGST), but the applicant has deposited only Rs. 5,000/- under IGST Act. Despite giving multiple opportunities, the applicant has not deposited the required pending fee of Rs. 10,000/- under (Rs.5,000 each for CGST and SGST). Thus, the application is hereby filed without any ruling.
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2022 (10) TMI 776
Exemption from GST - Cotton Seeds “Banaula” - inclusion in the list of agricultural produce for exemption in GTA service - applicability of N/N. 12/2017dated 28'11June, 2017 (Tariff heading 9965/9967) - if taxable, then rate of GST - HELD THAT:- One of the essential conditions to qualify as agriculture produce is that the produce does not require any further processing or processing is carried by producer/cultivator. In present case, it may be seen that the cotton seed emerges after processing in mills, thus the above condition is not fulfilled and the same cannot be said to be agriculture produce as per the Notification - Further, it is held in the plethora of judgments that exemption Notification should be strictly construed and beneficiary must fall within the ambit of the exemption and fulfill the conditions thereof. In case such conditions are not fulfilled, the issue of application of the notification does not arise at all by implication.
Thus, cotton seed emerging from the intermediate process do not fall in the definition of 'agricultural produce' under GST. It is apparent from the definition of 'agricultural produce' that the government intends to provide exemption to the produce occurring only at the first stage of the cultivation or rearing and not to those which are processed in factories after they are sold by the cultivator/producer.
Rate of GST - HELD THAT:- The services provided by a goods transport agency in relation to transportation of cotton seeds in a goods carriage are classifiable under heading 9965 and leviable to CGST @2.5%, provided that credit of input tax charged on goods and services used in supplying the service has not been taken, else @6%, under Sr. No. 9 of the Notification No. 11/2017-Central Tax (Rate) dated 28.06.2017.
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2022 (10) TMI 775
Levy of GST - rate of GST - Nature of supply - electricity and water charges which are being collected at actual by the Lessor from the Lessee - difference of opinion among the Members of the Authority for Advance Ruling - HELD THAT:- Since there is no uniform opinion arrived by the Members of the Authority for Advance Ruling in respect of Questions raised by applicant representing Central Tax and State Tax and they have expressed two different views on the issue raised by the applicant on the applicability of GST on electricity and water charges which are being collected at actual by the Lessor from the Lessee, the application filed by M/s. Duet India Hotels (Hyderabad) Private Limited, Sy No.27/1 TO 27/4, Adjacent To Dell, Nanakramguda, Serilingampally, Hyderabad, Telangana, 500 017 (36AADCD1031G2Z7), is being referred to the Appellate Authority for Advance Ruling for the state of Telangana in terms of Section 98(5) of the CGST/TGST Act, 2017 for hearing and decision on the questions on which advance ruling is sought.
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2022 (10) TMI 774
Exemption from GST - pre and post Examination services being provided to the Educational Boards and Universities (including Open Universities) - services are provided on sub-contract basis i.e., the applicant provides pre and post examination services to the main contractor who in turn provides the said services to the Educational Boards and Universities (including Open Universities) - no uniform opinion arrived by the Members of the Authority for Advance Ruling.
HELD THAT:- Since there is no uniform opinion arrived by the Members of the Authority for Advance Ruling in respect of Question "whether the exemption is available to the applicant in case of the services are provided on sub-contract basis" raised by applicant representing Central Tax and State Tax and they have expressed two different views on the issue raised by the applicant on the applicability of GST as sub-contractor or the application filed by M/s. Magnetic Infotech Pvt Ltd, Plot NO.08, Krishna Nagar Colony, Kakaguda Village, Wellington Road, Picket, Secunderabad, Hyderabad, Telangana- 500009 (36AACCM2333F1ZV), is being referred to the Appellate Authority for Advance Ruling for the state of Telangana in terms of Section 98(5) of the CGST/TGST Act, 2017 for hearing.
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2022 (10) TMI 773
Rate of tax - taxable value - construction services of the apartments rendered by them from 01.07.2017 - amount for the undivided share of land and the amount for construction are fixed and separately available - appellant are not collecting and paying GST on the amount collected for the undivided share of land and they are collecting GST at the rate of 18% on the amount collected for the construction of the apartment.
HELD THAT:- The project of the applicant satisfies all the conditions of the definition of "ongoing project" in clause (xx) of Para 4 of the said notification and accordingly the applicant is eligible for filing option for continuing with the payment of tax at the old rates in respect of ongoing projects. It is also confirmed by the jurisdictional officer that the applicant has exercised the option to continue payment of tax at the old rate in respect of the project within the prescribed time and the manner prescribed in Item (ie) and (if) of Si No. 3 of the said notification. Given the above option exercised by the applicant, the services of construction of residential apartments rendered by the applicant are liable to GST at the rates prescribed under Item (ie) or (if) of Sl. No. 3 of the Notification No. 11/2017 Central Tax (Rate) dated 28.06.2017 as amended by Notification No. 03/2019 Central Tax (Rate) dated 29.03.2019 - the services of construction of apartments provided by the applicant squarely fall within the description of services specified in Item (if) of S1 No. 3 of the Notification No. 11/2017 Central Tax (Rate) dated 28.06.2017 as amended by Notification No. 03/2019 Central Tax (Rate) dated 29.03.2019 and accordingly the tax rates as prescribed in the said entry shall apply to the said services supplied by the applicant. Accordingly, the applicant is liable to pay GST at the rate of 18% in respect of the services of construction of residential apartments supplied by them.
Taxable value of the services of construction of residential apartments rendered by them - HELD THAT:- The taxable value in respect of the service specified at item (if) of Sl.No. 3 of the said notification is the total amount charged for the supply less the value of land or undivided share of land and the value of land or undivided share of land shall be deemed to be one-third of the total amount charged for the supply. As per the valuation mechanism prescribed in paragraph 2 of the said notification, the value of land or undivided share of land is deemed to be one-third of the total amount charged for the supply irrespective of the actual value of land and accordingly the applicant is eligible to avail deduction of one-third of the total amount charged for the supply in arriving at the taxable value of the supply.
Time of supply of service - Value of supply - HELD THAT:- The provisions of section 13 of the CGST Act, 2017 will apply to the determination of the time of supply. The provisions of Section 15 of the CGST Act, 2017 read with Para 2 of Notification No. 11/2017 Central Tax (Rate) dated 28.06.2017 will apply for determining the taxable value of the services supplied for the period from 01.07.2017 onwards and accordingly one-third of the total amount charged for the supply shall be deemed to be the value of land or undivided share of land involved in the supply.
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2022 (10) TMI 724
Classification of services - rate of GST - Eligibility for concessional rate of GST at 12% - works contracts - execution of works for Telangana State Industrial Infrastructure Corporation Limited (TSIIC), a Government entity - Applicability of S. No. 3(vi) of the Notification No. 11/2017-Central Tax (Rate), dated 28-6-2017, as amended by? - HELD THAT:- The Memorandum of Association of TSIIC at clause III(a)(3) clearly states that the company pursues the objectives to implement the schemes of incentives, subsidies and the like formulated by the Government of Telangana or Government of India or other authorities or institutions and to administer such schemes of incentives from time to time in the interest of establishments and development of industries. Thus TSIIC organization works to further the policies of the State Government, Central Government and Local Government for development of industries in the State of Telangana.
The applicant has executed works contracts for TSIIC which is a Government entity. This work is construction of IT Incubation Centre. Therefore the civil structure is meant for commerce/industry or any other business.
The works contract executed by the applicant for construction of IT Incubation Centre for TSIIC falls under exception to Sr. No. 3(vi) of Notification No. 11/2017-C.T. (Rate) wherein the civil structure is meant for commerce/industry or any other business and therefore the supply of this service is taxable at the rate of 9% under CGST and SGST each.
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2022 (10) TMI 620
Requirement of separate registration is required in Odisha state - location of supplier - whether E-tender document/LOA would suffice as address proof since nothing else is with the Applicant and service recipient will not provide any other proof? - purchase of goods from a supplier of Maharashtra and shipment of goods directly from the premises of a supplier of Maharashtra to Odisha state - purchase of goods from a dealer of Odisha to use the goods in Odisha - applicability of CGST & SGST or IGST by the supplier/dealer of Maharashtra.
HELD THAT:- Location of supplier is usually where a supply is made from, a place mentioned as a principal place of business on the GST registration certificate. But in the instant case, clause (b) appears to be applicable to the Applicant for the location of supplier of services. The location of supplier seems to be at the project site, East Coast Railway, Odisha which is different from the place of business - The nature of supply is such that, it is not feasible to get it supplied from the State of Maharashtra. So an establishment is definitely required in the state of Odisha, where the work is being carried out. In the present case, we observe from the E-Tender documents of East Coast Railway that the Applicant shall, at its own expense, will provide it self with Sheds, Store houses and Yards in such situation and in such numbers as in the opinion of the Engineer is requisite for carrying on the works and the Applicant shall keep at each such sheds, storehouses and yards a sufficient quantity of materials.
The Applicant has sub contracted some part of the work to M/s SRC Company Infra (P) Ltd, Hyderabad. The value of the contract accepted by the sub-contractor is Rs. 137,60,47,790 out of the total cost of the contract of Rs.337.18 Cr. - The Engineer’s representative shall have free access to the said sheds, storehouses and yards at any time for the purpose of inspecting the stock of materials. Further, the Applicant shall at its own cost provide and maintain suitable mortar mills, soaking vats or any other equipments Necessary for execution of the works.
The Applicant is required to maintain suitable structures in terms of human and technical resources with sufficient degree of permanence at the sites of East Coast Railway, Odisha to effect supply of desired services as per the terms and conditions of the work order. It has to ensure provision of works contract service for the contract period, indicating sufficient degree of permanence to the human and technical resources employed at the sites. The Applicant through its expert belonging, therefore, is to supply the services at the site from the establishment as defined under section 2 (7) of the IGST Act. The location of the supplier should, therefore, be in Odisha in terms of section 2 (15) of the IGST Act - the Applicant is required to be registered under Odisha Goods and Services Tax Act, 2017 and Central Goods and Services Tax Act, 2017 in the State of Odisha for the works contract services to be provided to M/s East Coast Railway Odisha vide agreement under discussion.
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2022 (10) TMI 307
Classification of goods - rate of GST - Combined Wire Rope used as a part of Fishing Vessel - Taxable at the rate of 5% in terms of Sr.No.252 of Schedule-1 of Notification No. 1/2017-CTR corresponding notification issued by Gujarat State and Notification No. 1/2017-ITR or not?
Whether the Combined Wire Ropes is a part of fishing vessel or otherwise?
HELD THAT:- Wire Rope is used in various fields such as Mines, Haulage, General Engineering, lift & escalators and Shipping depending upon the requirement and usage of the field. It is observed that Wire Rope is used in Shipping but in the Manual use of Wire Rope in fishing vessel have not been mentioned. This confirms that Wire Rope has no specific/general use in the fishing vessel - Combined Wire Rope is not a part of fishing vessel but it's one side is used to tie the Fishing Net and other side of Wire Rope tied on the vessel. The main use of Combine Wire Rope in fishing is to tie the fishing net with vessel. Therefore, fishermen required such wire rope for fishing purpose and the applicant supply such Combine Wire Rope to them. Further, as per the use of Combine Wire Rope it is amply clear from the above that it has no use in the fishing vessel but it is used to tie the fishing net.
The application has submitted that, “it is crystal clear that without Rope, fishing net cannot be used for fishing purpose with the Fishing Vessels”. The applicant above submission itself explain that fishing net cannot be used without the Rope, it means that Wire Rope is essential for the fishing net which is used for fishing and without wire rope fishing net will not be of any use. Hence Combined Wire Rope is not the essential/integral part of fishing vessel but it is must for the fishing net - Thus, the applicant goods Combined wire Rope is not a Part of the fishing Vessel.
Combined Wire Rope is not used as a part of fishing vessel and the impugned goods does not cover under entry No.252 of Schedule-I of Notification No. 1/2017-CT(Rate) dated 28-06-2017 as amended and is not eligible to GST @ 5%.
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2022 (10) TMI 306
Classification of goods - rate of GST - HTP (Horizontal Triplex Plunger) kirloskar Power Sprayer (Engine Driven) - applicability of Tariff Heading 8424 in the Notification No. 11/2017-CT (Rate) dated 28-6-2017 as amended vide Not. No. 6/2018-CT (Rate) dated 25-6-208 at Entry No. I95B or not - HELD THAT:- The product in question is essentially a Mechanical Appliances operated by petrol engine which is used for spraying liquids as per the requirement. There is no dispute to the classification of product, which even as per the own admission of the applicant would be under Chapter Head 8424 of the GST Tariff.
‘HTP kirloskar Power Sprayer’ based on the use merits classifiable under HSN 8424 89 90.
The CBIC vide Circular No. 113/32/2019-GST has clarified that Mechanical Appliances whether or not hand operated for projecting, dispersing or spraying liquids attracted GST @18% [Sr. No. 325 of Schedule III]. The applicant goods are Mechanical Appliances which is used in dispersing and spraying the liquids in various fields as per the requirements - It can therefore be concluded that the product ‘HTP kirloskar Power Sprayer’ merit classification under HSN 8424 89 90 and covered under Entry No. 325 of Schedule-111 of Notification No. 1/2017-Central Tax (Rate), dated 28-6-2017 and attract GST tax rate 18%.
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