AAR CASES

2018-TIOL-55-AAR-GST

Contract for assembly, erection and commissioning of plant undertaken under a separate contract does not fall under the ambit of SAC 9954 but falls under Heading 9987 and attracts @18% rate of tax under notification 11/2017-CT(R), Entry 25: AAR

2018-TIOL-54-AAR-GST

Whether under Reverse Charge Mechanism, IGST should be paid by importer on Ocean Freight in case of CIF basis contract, when service provider and service recipient both are outside the territory of India? Document for taking credit/Eligibility of CENVATcredit on office fixture, AC plant, sanitary fittings etc.?

Held:

+ Even if the importer has already paid IGST on CIF value of imported goods, he is still required to pay IGST on Ocean freight – mere filing of Civil Application before Gujarat High court in the case of Mohit Minerals does not render the notifications 8/2017-IT(R) and 10/2017-IT(R) ultra vires unless and until the same is held so by the competent court.

+ Credit of IGST paid can be taken on the basis of invoice/challan issued.

+ Credit is not available in respect of land, building or any other civil structure in view of the provisions of s.17 of CGST Act, 2017 and same applies to sanitary fittings as they are integral part of building/civil structure.

+ Credit of GST is available on office fixtures and furniture, AC plant – Board Circular 943/04/2011-CX dt. 29.04.2011 &Balkrishna Industries 2015-TIOL-2697-CESTAT-DEL relied upon – credit available provided registered person has not claimed depreciation on the tax component of the cost of the capital goods and plant and machinery under the provisions of the Income Tax Act, 1961: AAR

2018-TIOL-53-AAR-GST

'Geared Motor' is an assembly product of ‘Electric Motor' and ‘Gear Box' and is correctly classifiable under Chapter Heading 8501 of the CTA, 1975 – GSTrate applicable to Chapter Heading 8501 is applicable to the said product: AAR

2018-TIOL-52-AAR-GST

Issue of High Sea Sale falls in the domain of Customs and not under the Goods and Services Tax –Therefore, on the issue of lack of jurisdiction, at the stage of admission, application is rejected: AAR

2018-TIOL-51-AAR-GST

Applicant are holders of special warehouse licence for storage of duty free ship stores imported without payment of duty for supply to Indian Naval/Coast Guard Ships and Ocean going merchant ships – applicant seeking a ruling whether such supplies are exempted.

Held: Goods received by applicant are within the Customs area as defined in s.2(11) of CA, 1962 and accordingly goods cleared/supplied by applicant is to be treated as supply of goods in the course of inter-state trade – supplies are also not an exempt supply as per definition u/s 2(47) of CGST, 2017 as it is neither nil rated or exempt by notification – Therefore, Applicants are not exempted from tax under GST on their outward supplies made to ocean going merchant vessels on foreign run, Indian Naval Ships and Indian Coast Guard Ships - Applicant can collect applicable GST from their customers in case it is not exports - However, in case of exports the option lies with the applicant based on manner of exports i.e. whether they intend to export under bond or on payment of tax: AAR

2018-TIOL-50-AAR-GST

Applicants provide service of warehouse / space on rent to their customers, where they store imported agricultural commodities - Ruling sought on classification etc.

Held : Once the storage premises is rented by the applicant to its customers, what use the customer makes of such premises doesn't have any bearing on the nature of service provided by the applicant - service provided is classifiable as ‘Rental or leasing services involving own or leased non-residential property' (SAC– 9972) leviable to GST @ 18%: AAR

2018-TIOL-49-AAR-GST

M/s. Essar undertakes to provide the necessary goods such as Electricity, Industrial quality water to the applicant on a free-of-cost basis, using which the applicant manufactures industrial gases (Oxygen, Nitrogen and Argon) for Essar on Job Work basis - Application filed seeking classification of goods/services and determination of time/value.

Held: Activity undertaken by the applicant falls under the ‘Job Work' as defined u/s 2(68) of the CGST Act, 2017 and the Gujarat GST Act, 2017 - applicant is liable to pay GST on the value of supply determined u/s 15(1) of the Acts : AAR : ADVANCE RULINGS

2018-TIOL-48-AAR-GST

"Ice Cream Making Machine" is classifiable under Tariff Heading 84.18 and not under Tariff Heading 84.38 of the CTA, 1975: AAR

2018-TIOL-47-AAR-GST

Services by TPL-SUCG Consortium to Jaipur Development Authority under contract awarded to them are covered under notification 11/2017-CT(R) as amended and attract GST @12% (CGST + SGST) and which rate is also applicable to the sub-contractor leg under the said contract: AAR

2018-TIOL-46-AAR-GST

Commodities such as marine propellers, rudder set, stern tube set, propeller shaft and M.S. Shaft for couplings are mainly used as a part of fishing/floating vessels, same would be covered under Entry 252 of Schedule I of Notification No. 01/2017- CT(R) and hence taxable @5% [CGST + SGST]: AAR

2018-TIOL-45-AAR-GST

Implants for joint replacements falling under HSN Code 9021 3100 are covered under Serial No. E(9) of List 3 of Entry 257 of Schedule I of Notification No. 01/2017 - CT(R) attracting GST at the rate of 5%[CGST + SGST]: AAR

2018-TIOL-44-AAR-GST

GST - Carry bags made of polypropylene non-woven fabrics is classifiable under HSN code 6305 and since sale value is less than Rs.1000/- per piece, it is chargeable to GST under entry 224 of Schedule I of the Notification No. 01/2017-CT(R) , hence taxable @ 5% [CGST + SGST]: AAR