TMI Blog2019 (12) TMI 1005X X X X Extracts X X X X X X X X Extracts X X X X ..... GS (Under Section 98 of the Central Goods and Services Tax Act, 2017 and the Maharashtra Goods and Services Tax Act, 2017) The present application has been filed under Section 97 of the Central Goods and Services Tax Act, 2017 and the Maharashtra Goods and Services Tax Act, 2017 [hereinafter referred to as the GST Act and MGST Act ] by M/s. Maneckji Cooper Education Trust , the applicant, seeking an advance ruling in respect of the following question. The applicant would like to know whether the registration under the GST Act should be surrendered. At the outset, we would like to make it clear that the provisions of both the CGST Act and the MGST Act are the same except for certain provisions. Therefore, unless a mention is specifically made to any dissimilar provisions, a reference to the CGST Act would also mean a reference to the same provision under the MGST Act. Further to the earlier, henceforth for the purposes of this Advance Ruling, the expression GST Act would mean CGST Act and MGST Act. 2. FACTS AND CONTENTION - AS PER THE APPLICANT The submissions, as reproduced verbatim, could be seen thus- The Applicant is a registered Charitable T ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... educational services, as principal activity of the Trust. The receipts of the applicant are divided as under for the period ended 31/03/2018 as per audited Statement of Accounts; Rent : That is to say rent for lease hold land of residential property situated in Mumbai, Maharashtra. The Land was belonging to Shri Jehangir Maneckji Cooper, who at his wish directed the Co-operative Housing Society, whose residential building is constructed on the said lease hold land to remit the lease rental charges to the Maneckji Cooper Education Trust, as, the trust deed was settled by him in the name of his father. In fact, this is in form of regular donation from the family of Maneckji Cooper to the applicant trust. The same is declared as Rent on lease of residential plot in Mumbai. Interest : Interest on securities, debentures and bonds and on Bank accounts of the trust is earned at ₹ 60945559/- during the financial year. Dividend : Some shares are in the name of the applicant trust and every year the trust is receiving Dividend on the said investment. During the financial year ending on 31/03/2018, total Dividend receipt is at 1630868/-. Advertisement Charges: ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ER The submissions, as reproduced verbatim, could be seen thus- This office feels that query raised by applicant is not covered under entries mentioned in section 97(2), hence application requires to be rejected. However, if the Hon Advance Ruling Authority hears the applicant for issue raised by him, this office humbly makes following submission- As per the statements provided by applicant, the main sources of Income of the Applicant Trust were as under- Sr.No. Source of Income Gross Receipts in Rs. lacs (year 2016-17) Gross Receipts in Rs. lacs (year 2017-18) 1 Tuition Fees, Tutorial and Term fees from running the Maneckji Cooper School 787 807 2 Income from forms, budges, files and other sundries relating to running of the school 5 7.90 3 Interest on securities, debentures, bonds, fixed deposits and savings accounts 596 609 4 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... puted on all India basis but excludes Central tax, State tax, Union territory tax, Integrated tax and Cess; Section 2(47) defines exempt supply as supply of any goods or services or both which attracts nil rate of tax or which may be wholly exempt from tax under Section 11, or under Section 6 of the Integrated Goods and Services Tax Act, and includes non-taxable supply. From the statement made by applicant for year ended 31st March 2017, applicant has Income from following sources:- 1. Tuition Fees, Tutorial and Term fees from running the Maneckji Cooper School As mentioned in Sr. No.66 of Notification No.12/2017 - C.T. (Rate) dated 28th June 2017 as amended by Notification No.2 /2018 dated 25th January 2018, following services are exempted. Services provided - (a) by an educational institution to its students, faculty and staff; (b) to an educational institution, by way of,- (i) transportation of students, faculty and staff; (ii) catering, including any mid-day meals scheme sponsored by the Central Government, State Government or Union territory; (iii) security or cleaning or housekeeping services performed in such educational ins ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ,48026940,48026950, 48026960,48026990 2. Uncoated kraft paper and paperboard, in rolls or sheets, other than that of heading 4802 or 4803 4804 12 48041100,48041900,48042100,48042900,48043100, 48043900,48044100,48044200,48044900,48045100, 48045200,48045900 3. Other uncoated paper and paperboard, in rolls or sheets, not further worked or processed than as specified in Note 3 to this Chapter 4805 12 48051100,48051200,48051900,48052400,48052500, 48053000,48054000,48055000,48059100,48059200, 48059300 4. Envelopes, letter cards, plain postcards and correspondence cards, of paper or paperboard; [other than boxes, pouches, wallets and writing compendiums, of paper or paperboard, containing an assortment of paper stationery including writing blocks][Except 48173 4817 18 48171000,48172000,48173010,48173090 5. Exercise book, graph book, laboratory note book and notebooks ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er. photographer. artist or the like by way of transfer or permitting the use or photographer, artist, enjoyment of a copyright covered under clause (a) of sub-section (1) of section 13 of the Copyright Act, 1957 relating to original literary, dramatic, musical or artistic works to a publisher, music company, producer or the like . Author or music composer, or the like Publisher, music company, producer or the like, located i n the taxable territory The Copyright Act, 1957 defines Author as - author means, - (i) in relation to a literary or dramatic work, the author of the work; (ii) in relation to a musical work, the composer; (iii) in relation to an artistic work other than a photograph, the artist; (iv) in relation to a photograph, the person taking the photograph; (v) in relation to a cinematograph film or sound recording, the producer; (vi) in relation to any literary, dramatic, musical or artistic work which is computer- generated, the person who causes the work to be created; Further, the act defines exclusive license means a license which confers on the licen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and periodicals Notification No 13/2017 dated 28th June 2017 allows authors to discharge their tax liberty in Reverse Charge Mechanism. However, this office is of opinion that, as the transaction done by applicant is covered under entry 9997344 which is taxable outward supply at 18% tax rate and is not covered under Reverse Charge Mechanism. 6. Lease rent of plot of land at Pedder Road, Mumbai SAC Code Description of Service Tax Rate 997211 Rental or leasing services involving own or leased residential property 18 997212 Rental or leasing services involving own or leased non-residential property 18 Hence, the transaction is taxable under GST. 7. Advertisement receipts in school Magazines For advertisement in school magazines, following SAC codes defines services related to it. SAC Code Description of Service Rate 998362 Purchase or sale of advertising space ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... bmitted his say as well as written response to the subject application. 05. OBSERVATIONS 5.1 We have gone through the facts of the case, documents on record and submissions made by the applicant as well as the jurisdictional office. 5.2 We find that applicant is registered person under GST Act and receiving taxable income for goods/services supplied by them. 5.3 The subject application was admitted on the basis of oral contention and written submission made by the applicant. However, on perusal of the submissions and documents on record, we find that the query raised by the applicant is, whether they should surrender their existing GST registration. The questions posed by the applicant before us are reproduced as follows. 1) The applicant would like to know whether the registration under the GST Act should be surrendered. 5.4 We feel it necessary first to decide whether the questions raised by the applicant are covered under Section 97(2) of the CGST Act, 2017, and thus maintainable, or liable for rejection. Having said so, we invite attention to the questions that can be posed in an application for an Advance Ruling under the provisions of the GST Act. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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