UTGST RULES NOTIFICATION
04/2019
Constitution of the Appellate Authority for Advance Ruling in the Union territories notified - Notification 15/2018-UTT superseded
03/2019
Constitution of the Authority for Advance Ruling in the Union territories - Notification 14/2018-UTT amended
AAAR CASES
2019-TIOL-43-AAAR-GST
Senthilkumar Thilagavathy
GST - AAR held that Non-woven carry bags/shopping bags supplied by applicant are classifiable under CTH 4202 2210 and Cotton Carry bags under CTH 4202 2220; attract GST 18% and 12% respectively w.e.f 15.11.2017 - appeal to Appellate authority contesting the classification of Cotton bags as being correctly classifiable under CTH 6305 2000:
Held: Since Chapter 42 is not restricted only to articles of leather and Tariff Heading specifically covers ‘shopping bags' of cotton, with outer surface of textile materials, no merit in the contention of the appellant that articles of leather or characteristically of leather trade is alone classified under chapter 42; original authority has reasoned the decision taken hence no infirmity in the order - no interference called for in the order of the AAR, hence appeal dismissed: AAAR
- Appeal dismissed: AAAR
2019-TIOL-42-AAAR-GST
GGL Hotel And Resort Company Ltd
GST - The appellant-company is engaged in the hospitality and real estate sector - It embarked on a project for starting a hotel and banquet - It acquired land on lease from the WB Housing Infrastructure Development Corporation Limited for a lease premium amount with annual lease rent @ 10% of the lease premium for the premium amount for the first two years - Such premium would be escalated by 5% per annum in the subsequent years - The WBHIDCL would charge 18% GST on the lease rent - The appellant then approached the AAR as an applicant, seeking to know if credit could be availed on input tax paid on lease rent during the pre-operative period for the leasehold land on which the resort is being constructed to be used for furtherance of business, where the same has been capitalized and treated as capital expenditure - The AAR answered such question in the negative, thus triggering the present appeal.
Held - The premium paid by the appellant is exempted under Sr No 41 of Notfn No 12/2017-CT(R) as amended vide Notfn No 32/2017-CT(R) and Notfn No 23/2018-CT(R) - The lease rental paid is taxable under Sr No 16 of Notfn No 11/2017-CT(R) as amended by Notfn No 1/2018-CT(R) - Lease premium and lease rental are parts of the project cost, where the former is one-time fixed amount while the latter is a variable cost - Both classify under SAC 9972 being Real Estate Services - As the lease premium paid by the appellant is exempted on satisfaction of the criteria stipulated in the relevant Notfn, no question arises of availing ITC - Besides, the appellant is constructing the resort in furtherance of its business of providing hospitality service - for which one input service availed is lease rental service - The ambit of blocked credit u/s 17(5)(d) is broad and includes such goods & services used in the course of furtherance of business - Hence such provision restricts the appellant from availing ITC of lease rental paid - Thus the decision of the AAR warrants no interference with: AAAR
- Appeal dismissed: AAAR
AAR CASES
2019-TIOL-155-AAR-GST
Rambagh Palace Hotels Pvt Ltd
GST - ITC will not be available to the extent of capitalization of building materials, electrical fittings, sanitary fittings, service of labour supply: AAR
GST - ITC will not be available for Works Contract Service to the extent of capitalization of supply of goods and services: AAR
GST - ITC paid on wood, board, mica, tapestry, paint, polish and other consumables meant for repair of existing furniture & fixtures will be available in accordance with s.16 of the Acts: AAR
GST - ITC will be available for service of labour supply for carrying out repair of furniture & fixtures in accordance with s.16 of the Acts: AAR
GST - ITC will be available for GST paid on composite supply of goods (furniture & fixtures) and services (manpower supply) in accordance with s.16 of the Acts: AAR
GST - ITC will be available for GST paid on purchase of new ready-to-use furniture in accordance with s.16 of the Acts: AAR
- Application disposed of: AAR
2019-TIOL-154-AAR-GST
Udyog Mandir
GST - Khadi Readymade garments are not covered under entry 130A, Notfn. 2/2017-CTR, Chapter heading 50 to 55 since it includes only Khadi fabrics but is correctly classifiable under CH 62 and will attract GST @5% or 12% depending on their sale value in terms of notification 1/2017-CTR: AAR
- Application disposed of: AAR
2019-TIOL-153-AAR-GST
Malli Ramalingam Mothilal
GST - KalavaRaksha Sutra (Sacred Thread) which is Braided textile yarns made of polypropylene and supplied by the applicant is classifiable under CTH 5607 4900; that made of Other Synthetic yarn is classifiable under CTH 5607 5090 and that of Cotton under 5607 9090; items are not, by themselves,KalavaRaksha Sutra sold directly to consumers but long lengths of thread cut to lengths equivalent to various weights of 20 to 100 grams; of various composition sold in loose rolls to the applicant's buyers who need to further cut to individual sizes to make them Kalava Sutra: AAR
- Application disposed of: AAR
2019-TIOL-152-AAR-GST
Gitwako Farms India Pvt Ltd
GST - Goods supplied in HDPE bags are of pre-determined quantity hence qualify as a unit container - Branded Frozen Chicken supplied in a unit container is classifiable under HSN Code 0207 1200 & is not exempted under notification 02/2017-CTR; attract GST @5% Notification 1/2017-CTR: AAR
- Application disposed of: AAR
2019-TIOL-151-AAR-GST
Laxmi Agrotech Steel
GST - Individual Metal parts of Sprinkler Irrigation System/Drip Irrigation System viz. Latch clamp, C-clamp, Foot Batten, Riser Pipe, Aluminium Rivet and Mini sprinkler rod etc. manufactured and supplied by applicant will not be covered under Chapter Heading 8424, Entry no. 195B of Schedule II of Notification 1/2017-CTR - Circular 81/55/2018-GST dated 31.12.2018 referred: AAR
- Application disposed of: AAR
2019-TIOL-150-AAR-GST
Laxmi Rubber Industries
GST - Rubber Ring/Gasket/Seal, Rubber Foot Batten Washer and Rubber Grommets are correctly classifiable under CH 4016 and attract GST @18%; not classifiable under CH 8424 as Parts of Sprinkler Irrigation System & Drip Irrigation System in view of Chapter note 1 to Section XVI which excludes rubber items; not covered under Entry no. 195B of Schedule II of Notification 1/2017-CTR - Circular 81/55/2018-GST dated 31.12.2018 referred: AAR
- Application disposed of: AAR
2019-TIOL-149-AAR-GST
Dagger Die Cutting India Pvt Ltd
GST - Applicant is supplying cutting tools for leather shoes manufacturing factory in Tamil Nadu but receive payment from abroad in foreign currency - They seek a ruling to know whether to charge IGST or CGST/SGST for such supplies.
Held: Issue for which Advance Ruling is sought depends on the ‘place of supply of the goods' which is not within the ambit of the AAR in view of s.97(2) of the Act - application rejected u/s 98(2) of CGST Act, 2017 without going into the merits of the case: AAR
- Application disposed of: AAR
GST FAQ
FAQ (Part II) on real estate sector Dated : May 14, 2019
JEST GST by Vijay Kumar
Mutatis mutandis
ARTICLES
GST - Real Estate - FAQs are welcome but more needs to be done!
GST on Real Estate - A cobweb of complex legislative framework
