GST CASE LAWS

AAAR CASES

2019-TIOL-34-AAAR-GST

GST - The appellant manufactured Agricultural seedling trays - It approached the AAR seeking to know the classification of the same - It also sought to know the tax rate applicable on Agricultural trays - The AAR held that Agricultural Seedling Trays made of Plastic manufactured by the applicant are classifiable under CTH 39269099 and the applicable tax rate is 9% CGST as per SI.No. 111 of Schedule III of Notification No. 01/2017- CT(R) dated 28.06.2017 as amended and is 9% SGST as per SI.No. 111 of Schedule III of corresponding State Notfn - Hence the present appeal.

Held - Classification under a Heading is to be governed only by the relevant Tariff-entries, Heading-description, i.e., Heading 8201 do not envisage that all items used for agriculture would be covered therein but specifically as given in the General Explanatory Notes to Chapter 82 are to be classified based on the constituent material it is made of - The AAR has considered the same and accordingly pronounced the Ruling - Hence the findings of the AAR warrant no interference with: AAAR

- Appeal dismissed: AAAR

2019-TIOL-33-AAAR-GST

GST - The appellant herein is stated to be affiliated to the International Inner Wheel and acts as the administrative body for the all Inner Wheel Club, spread over 27 Inner Wheel Districts all over India - The applicant had approached the AAR seeking to know whether its activities would classify as business or as supply of services, under the WBGST Act - The AAR proceeded to hold that the activites involved supply of services & were classifiable under SAC Heading 99959, for which consideration was received in the form of subscription and membership fees - Services classifiable under SAC Heading 99836 were also found to be supplied - Moreover, the sale of souvenirs was held to be supply of goods - It was also held that the nature of supply for miscellaneous income as recorded in the Financial Accounts is to be determined by the nature of service.

Held - The membership offered by the appellant is available only against payment of annual membership fees - The same has to be renewed annually - Besides, the various facilities & benefits are available to members only - These facilities enable them to attend various conventions and meetings for furtherance of the organization's objectives - Such facilities are not available to non-members - The scope of 'supply' u/s 7 of the GST Act includes goods or services supplied via sale, transfer, barter, exchange, license, rental, lease or disposal made for a consideration - The scope of 'business' u/s 2(17) includes provision by a club, association, society or other body for a subscription or other consideration - Schedule II of GST Act states that supply of goods by unincorporated association or body of persons to a member thereof for cash, deferred payment of other valuable consideration, is to be treated as supply of goods - Hence the activities of the appellant classify as supply of service - Thus the findings of the AAR warrant no interference with: AAAR

- Appeal dismissed: AAAR

 

AAR CASES

2019-TIOL-113-AAR-GST

JC Genetic India Pvt Ltd

GST - The applicant company is a health care company engaged in the diagnosis of pre and post counselling therapy as well as prevention of diseases by providing the necessary sophisticated tests - It also provides genomic information which helps physicians and wellness professionals in curing diseases - The applicant approached the AAR seeking to know whether exemption provided under Sr No 74 of Notfn No 12/2017-CT(R) dated 28.06.2017 is applicable to the applicant - It also sought to know whether the applicant qualifies as a clinical establishment under clase 2(s) of the Notfn.

Held - The applicant failed to prove its legal status as a clinical establishment - It is merely working as anciliary or sub contractor to other accredited companies - Hence the applicant is not entitled to avail exemption under Notfn No 12/2017-CT(R) and corresponding Notfn under the MPGST Act: AAR

- Application disposed of: AAR

2019-TIOL-112-AAR-GST

Narsingh Transport

GST - The applicant is registered for providing Goods Transport Agency service - It availed option to pay tax @ 12% and availed ITC on vehicles and spares used for providing such service as well as on inward services, such as insurance of vehicles and their repair & maintenance - The applicant purchased some cars which they leased out on a monthly basis - It approached the AAR seeking to know whether the GST paid on these cars provided to different customers on lease rent would be available as ITC as per Section 17(5) of the CGST Act.

Held - The applicant is entitled to avail ITC on cars further supplied to customers on lease rent, subject to condition applicable in such supply of services as per Notfn No 11/2017-CT(RO and corresponding Notfn in the MPGST Act - The provisions of Rule 42 are also applicable if required - Besides, upon termination of the lease agreement, if the vehicle is not further leased to some other customer, the applicant is liable to reverse the ITC availed - Such vehicles must abide by the norms and regulations under the Motor Vehicles Act and must be registered for commercial use and must not be used for personal use of the applicant: AAR

- Application disposed of: AAR

2019-TIOL-111-AAR-GST

Texmo Industries

GST - The applicant is a partnership firm engaged in manufacture of power-driven water pumps - It approached the AAR seeking to know whether it is eligible to avail ITC in respect of input (invoice) at any time within the limitation prescribed u/s 16 of the GST Act - It also sought to know whether ITC could be availed in cases of inverted duty structure and that whether in such cases the applicant can claim refund of accumulated credit availed before period prescribed for taking credit u/s 16(4) of GST Act.

Held - The applicant submitted a letter requesting withdrawal of the Application for Advance Ruling - Hence the application is dismissed as withdrawn: AAR

- Application dismissed: AAR

2019-TIOL-110-AAR-GST

Janakiraman Govindarajan

GST - The applicant manufactures Agricultural Seedling Trays - It approached the AAR seeking to know the classification of the product - It also sought to know the applicability of a notification issued under the GST Act as well as eligibility for ITC of tax paid or deemed to have been paid - It also sought the determination of tax liability.

Held - The Agricultural Seedling Trays made of base material of Polypropylene Granules manufactured by the applicant as Plastic are classifiable under CTH 39269099 - The applicable tax rate is 9% CGST as per Sr No 111 of Schedule III opf the Notfn No 01/2017-CT(R) as amended and is 9% SGST as per corresponding Notfn - Moreover, ITC is available subject to fulfilment of conditions u/s 16 & 17 of the CGST & TNGST Act: AAR

- Application disposed of: AAR

 

GST - CONCEPT & STATUS

GST CONCEPT & STATUS as on 1st April, 2019

SGST CIRCULAR KARNATAKA

Circular 01/2019

KGST Act 2017 - Verification of GST registration details of newly registered person, procedures to be followed

 

ARTICLES

Pay in lieu of serving notice period - ST/GST implication

GST levy on Realty Sector w.e.f 1st April - some major ramifications

JEST GST by Vijay Kumar

GST - Reinventing the Wheel