HIGH COURT CASES
2019-TIOL-2394-HC-AHM-GST
Power Palazzo Pvt Ltd Vs UoI
GST - The petitioner filed Form GST TRAN-1 within the stipulated time but was unable to avail such credit on account of certain technical glitches - The petitioner claimed that the tax credit is a vested right and unless it is established that the petitioner failed to claim it within the prescribed time, the respondent-Union is not justified in denying the claim for transitional input credit - It was also claimed that the IT Grievance Redressal Committee considered only those defined errors showing technical glitch but did not consider the other errors - It was pointed out that the Committee categotized the errors on account of technical/system issues and cases where there was no evidence of technical or system - It then allowed filing of Form GST TRAN-1 only in those cases where there were technical issues - Hence the petitioner claimed that once it was established that the petitioner tried to file Form GST TRAN-1, the respondent-Union was not justified in denying benefit of transitional credit merely on grounds that the error was not a defined one.
Held - The counsel for the respondent-Union drew attention to the minutes of the 4th meeting of the IT Grievance Redressal Commitee and claimed that the committee had not rejected the case of petitioner but had merely observed that in such cases, the procedure as per Circular dated 3.12.2018 was applicable and proper process was required to be followed and that such cases should not be forwarded to the GSTC Secretariat - Hence the respondent's counsel claimed that it was not that the petitioner's claim had been rejected, but the issue had to be decided by the Nodal Officer concerned as per the process established - Hence Rule be issued returnable on Nov 13, 2019 - Any decision taken in respect of the petitioner's representation be placed on record on or before such date: HC
Notice issued: GUJARAT HIGH COURT
2019-TIOL-2393-HC-MUM-GST
Shiv Shakti Pvt Ltd Vs UoI
GST - The petitioner-company had filed reply to notice issued by the Deputy Commissioner u/s 46 of the CGST Act for non-filing of GSTR-3B return - The petitioner seeks permission to withdraw the present petition so as to take appropriate steps.
Held - The petitioner's request is granted - The petition is dismissed as withdrawn: HC
- Writ petition dismissed: BOMBAY HIGH COURT
AAR CASES
2019-TIOL-355-AAR-GST
Mcafee Software India Pvt Ltd
GST - Applicant has entered into an agreement termed as ‘Marketing Services Agreement' and the applicant has undertaken the role of service provider to McAfee Singapore who is in the business of manufacturing and selling hardware and software products and the applicant has accepted a non-exclusive right to provide marketing support services in the territory - also is an agreement titled ‘Master Services Agreement' - above agreements clearly state that the applicant is performing services to support and facilitate the selling, marketing and distribution of products by the company and other affiliates and which clearly is in line with the definition of ‘Intermediary' who is a person who facilitates supply of goods or services or both, between two or more persons - Therefore, services supplied by applicant to McAfee Singapore is covered under SAC 998599 (if not treated as export of services) and attracts GST @18% - services provided by the applicant are in the nature of services supplied by intermediary - determining whether the place of supply is outside India or not is beyond the jurisdiction of the authority, hence no ruling is given on this issue: AAR
- Application disposed of: AAR
2019-TIOL-354-AAR-GST
Yashaswini Enterprises
GST - The applicant-company is into the business of drilling bore wells and are pursuing work order issued by M/s Dr B R Ambedkar Development Corporation Limited, Scheduled Tribes Welfare Department, Karnataka Maharshi Valmiki Scheduled Tribes Development Corporation Limited and other schemes - The applicant sought to know the applicability of Notfn No 2/2018-CT(R) with respect of Sr No 3A of such notfn onto it.
Held - The composite supply of energized bore wells to the recipient being Government entities as explained by the applicant is covered under the Entry No 3A of the Notfn No 12/2017-CT(R) as amended by Notfn No 2/2018-CT(R) as the service provided by the applicant satisfies all three requirements of such Entry: AAR
- Application disposed of: AAR
2019-TIOL-353-AAR-GST
Intek Tapes Pvt Ltd
GST - Applicant imports Polyimide Film under the brand name KAPTON manufactured by Dupont, USA and coat Silicone Adhesive over the same - final product is known as KAPTON Polyimide Adhesive tape which is used in various industries and also by the Indian Railways - applicant is classifying such tapes under the heading 8546 - Electrical Insulators of any material attracting GST @18% - it is the contention of the applicant that since the said product is used in railway locomotives they should be considered as parts and would be correctly classifiable under heading 8607 @5% GST - ruling sought.
Held: Section Note 3 of Section XVII states that goods under Chapter 85 are not covered under Chapter 86, therefore, by virtue of this Note, the product is not liable to be classified under heading 8607 - since their primary function is insulation, they cannot be considered as parts of locomotives - KAPTON polyimide Adhesive tape is rightly classifiable under heading 8546 and attracts GST @18%: AAR
- Application disposed of: AAR
2019-TIOL-352-AAR-GST
Vaishnavi Splendour Home Owners Welfare Association
GST - The applicant is a home-owners' association with 88 members - It maintains the common areas, provides lighting, undertakes periodic upkeep of equipments - It collects annual contributions from its members calculated based on super built up area owned by the members - The applicant also collected contribution for Corpus fund for future contingencies - It approached the AAR seeking to know whether the applicant was liable to pay CGST and SGAT on the contribution received from its members - If so, whether it can avail exemption under Notfn No 12/2017-CT(R) - If so, whether the applicant must restrict its claim of ITC - Also if the applicant is liable to pay CGST/SGST on amounts collected from its members for setting up a corpus fund.
Held - The applicant is liable to pay CGST and SGST on the contribution received from its members as their activities amounts to supply of service - The benefit of exermption is available only if the maintenance charges do not exceed Rs 7500/- per month per member - In case the charges exceed such amount, then the entire amount becomes taxable - The applicant is eligible to claim ITC on inward supplies of goods & services subject to the restrictions enumerated in Section 17(2) of CGST Act r/w Rule 42 of CGST Rules and other restrictions - The applicant is not liable to pay CGST or SGST on amounts collected from members for setting up a corpus fund: AAR
- Application disposed of: AAR
2019-TIOL-351-AAR-GST
VST Tillers Tractors Ltd
GST - The applicant company is engaged in manufacture and marketing of tractors and tillers - Such products are exclusively used in the farm sector for various agricultural activities - The applicant approached the AAR seeking to know the classification of and applicable rate of tax in respect of certain farm equipment.
Held - The parts of the tillers are classified under HSN Code 8432 90 90 if not excluded by way of Section Notes, Chapter Notes, Heading Notes or Sub-Heading Noties to the Customs Tariff Act or by any other exclusions - The parts, components and accessories of tractors which are either embossed with brand name or drawing number or exclusive part number of the applicant and which are exclusively manufactured for usage as inputs in manufacture of tractors are taxable under CGST Act @ 9% as per Notfn No 19/2017-CT(R) subject to the condition that the same are for tractors - 9% SGST is attracted as well and also 18% IGST: AAR
- Application disposed of: AAR
2019-TIOL-350-AAR-GST
Maxwell Electrical Engineers
GST - Applicant undertook turnkey projects for supply, erection, testing, commissioning of transmission of 11KV HT/LT lines and also engaged in erection of 25KVA transformers for Chamundeshwari Electrical Supply Co. Ltd./Bengaluru Electrical Supply Co. Ltd. and Ganga Kalyana scheme - applicant submits that the rate of tax would be @6% CGST as per entry no. 3(vi)(a) of 11/2017-CTR - ruling sought.
Held: Recipient of supply is actively engaged in commerce, business and trading of electricity - on this count, the composite works carried out by the applicant for the said Company are predominantly meant for trade and commerce, therefore, the applicant does not fulfil the conditions prescribed in item no. (vi)(a) of Serial no. 3 of 11/2017-CTR - such composite supply of Works Contract is taxable @9% CGST under item no. (iii) of Serial no. 3 of 11/2017-CTR till 28.03.2019 and thereafter at the same rate under item no. (xii) of Serial no. 3 of the said notification: AAR
- Application disposed of: AAR
2019-TIOL-349-AAR-GST
Jairaj Ispat Ltd
GST - Char-dolochar/dolochar (waste emerging during the process of manufacture of Sponge Iron) is classifiable under Tariff Item 2619 0090 and attracts GST @18% in view of Entry no. 28 of Schedule III of 1/2017: AAR
Application disposed of: AAR
2019-TIOL-348-AAR-GST
The Bangalore Printing And Publishing Company Ltd
GST - The applicant company is engaged in printing work - It approached the AAR seeking to know whether the activity of printing of question paperbooks is to be covered under HSN 4901 under the heading Printing books, including Braille books, in Sr No 119 of Notfn No 2/2017-CT(R) or under Sr No 66(b)(iv) with SAC 9992 of Notfn No 12/2017.
Held - The activity of printing question papers with the content supplied by the educational institutions constitutes a supply of services under Heading 9989 of Scheme of classification of services - The supply of services to educational institutes would be covered under Sr No 66 of Notfn No 12/2017-CT(R) and corresponding Notfn under KGST Act 2017: AAR
Application disposed of: AAR
2019-TIOL-347-AAR-GST
Toyota Tsusho India Pvt Ltd
GST - The applicant-company approached the AAR seeking to know whether the restrictions introduced by Notfn No 3/2018-CT on claiming refund of IGST paid on export of goods by inserting Rule 96(10) is applicable only on such export of goods for which corresponding inward supplioes were procured at a concessional rate of 0.10% under Notfn No 40/2017-CT(R), thereby holding that such restriction on IGST refund does not apply on export of goods which were procured on full payment of GST - Whether such restriction prohibits refund of IGST paid in its entirety even on such exports where the goods have been procured on full rate of GST by the person who procures only a small quantity of goods concessional rate of 0.10% under Merchant Export Scheme as provided under Notfn No 40/2017-CT(R).
Held - The persons who have procured goods by utilising the benefit of Notfn No 40/2017-CT(R) are not eligible to claim refund of IGST paid on exports as per Rule 96(10) of the CGST Rules 2017 right from 23.10.2017 irrespective of the other transactions made by such person: AAR
- Application disposed of: AAR
2019-TIOL-346-AAR-GST
Humble Mobile Solutions Pvt Ltd
GST - Question before the Authority is whether the applicant is liable to pay tax for supply of services by another person through the e-commerce platform operated by the applicant - Applicant operates technology based electronic service platform called "DriveU" which seeks to provide drivers on demand to customers who wish to obtain the services of a driver - drivers are individuals independent service providers who have opted to enlist themselves with DriveU and these drivers are not employees of the applicant but have been screened and trained prior to their being listed on the DriveU platform - Customer offers the mode of transportation and towards the end of the commute the customers are charged for the services of the driver which is intimated to them over the app or mail and such charges can be paid in cash, directly to driver or through online payment options to applicant - pursuant to payment for the drivers' services through any of the online modes, the applicant remits the proceeds collected from the customers to the respective drivers subject to deduction of TDS u/s 194C of Income Tax Act, 1961 - in return for use of the applicant's e-commerce platform, the drivers are charged convenience fee by applicant including GST - applicant contends that they are not liable to pay GST on services supplied through it by the third party service providers viz. drivers since they do not fall within the ambit of any of the services listed in 17/2017-CTR and consequently s.9(5) would not apply; that since TCS provisions have not been notified, applicant would not be liable to collect tax at source from third party service providers.
Held: Analysis of services provided reveals that the drivers are not employees of the applicant and are also not hired by the applicant; that the drivers are not supplying the services in 'their vehicles' but are driving the vehicles belonging to the recipients of services and hence applicant is not providing "services of transportation of passengers by a radio-taxi, motorcar, taxicab and motor cycle" but are providing manpower services namely "driving a motor vehicle services" which is not covered under 17/2017-CTR, clause (i) and hence not covered under s.9(5) of the CGST Act and, therefore, applicant is not liable to tax on the services provided by the drivers - insofar as the collection of online payments by applicant and paid to drivers, to the extent of consideration collected, the applicant shall be liable to collection of tax at source u/s 52(1) of the Act and which has come into force from 1st October 2018 by virtue of notification 51/2018-CT dated 13.09.2018 - Applicant, therefore, is not liable to pay tax for supply of services by drivers through e-commerce platform operated by them but are liable to pay tax on the services provided to the drivers - applicant is liable to collect tax u/s 52 of the CGST Act on the net value of taxable services made by the drivers through it where the consideration with respect to such supplies is to be collected by applicant: AAR
- Application disposed of: AAR
2019-TIOL-345-AAR-GST
Sutlej Coach Products Pvt Ltd
GST - The applicant exports Engineering Goods, Automotive Components, Railway Seats, Bus Seats, Sports goods part thereof - It approached the AAR seeking to know the classification of and GST rate applicable on Railway Seat and parts thereof, exclusively used by the Railways.
Held - The Seats for Railway Coaches manufactured by the applicant for M/s Rail Coach Factory fall under Heading 9401 and attract 18% GST: AAR
- Application disposed of: AAR
2019-TIOL-344-AAR-GST
Sri Venkateswara Enterprises
GST - The applicant is a proprietory concern engaged in printing and supply of text books, printing and binding of brochures, books, calendars and pamphlets, binding of diary, catalogues and printing of monthly and bimonthly magazines - It approached the AAR seeking to know the classification of and applicable rate of GST on certain items.
Held - The printed text books, classifiable under HSN Code 4901, supplied to re-sellers are covered under Entry No 119 of Notfn No 02/2017-CT(R) and is exempt from payment of CGST and SGST - The printing and binding of brochures, printing books and pamphlets, on job work basis attracts 2.5% CGST and 2.5% SGST under Entry No 26(ii) of Notfn No 11/2017-CT(R) whereas printing and binding of calendars attracts 6% CGST and 6% SGST under clause (iia) of Entry No 26 of Notfn No 11/2017-CT(R) - The binding of diary, catalogues and books on job work basis attracts 9% CGST and 9% SGST under Entry 26(iii) of Notfn No 11/2017-CT(R) - The printing of textbooks and workbooks supplied back to State Govt attracts 6% CGST and 6% SGST under Entry 27(i) of Notfn No 11/2017-CT(R) - The printing and supply of periodicals and magazines to the Govt Departments attracts 6% CGST and 6% SGST under Entry 11/2017-CT(R): AAR
- Application disposed of: AAR
2019-TIOL-343-AAR-GST
Prestige South Ridge Apartment Owners' Association
GST - The applicant is an apartment owners association - It approached the AAR seeking to know - i) GST rate applicable on procuring goods & services from third parties for upkeep and maintenance of apartments and collection of money from members to pay the vendors; ii) if liable to pay GST, whether exemption entry No 77 of Notfn No 12/2017-CT(R) is applicable for maintenance charges collected; iii) if exemption is available, whether it is available on per member basis or per flat basis; iv) whether exemption as per Entry No 77 of Notfn No 12/2017-CT(R) is standard exemption which can be claimed irrespective of amount collected towards maintenance; v) whether electricity charges paid to BESCOM for power consumed by common facilities and which is separately recovered from members must attract GST & vi) whether corpus or sinking fund collected from members is liable to GST.
Held - The activity of procuring goods and services from third parties for upkeep and maintenance of apartments and collecting the money from its members to pay third parties is an activity attracting GST - The exemption of Rs 7500/- in terms of Entry No 77 of Notfn No 12/2017-CT(R) is applicable for maintenance charges collected from members - The benefiot of exemption upto Rs 7500/- is applicable on per flat basis when members have more than one flat - The exemption of Rs 7500/- is available only if such charges do not exceed Rs 7500/- per month per member - If such limit is exceeded, the entire amount is taxable - The electricity charges paid to BESCOM is liable to GST as consideration received for supply of maintenance service to members - The corpus fund or sinking fund collected from members is not liable to GST as it amounts to deposits received towards future supply of services to members: GST
- Application disposed of: AAR
2019-TIOL-342-AAR-GST
Sk Aagrotechh
GST - The applicant is wholesale dealer in edible oils - It also manufactures Pooja Oil, which is a mixture of Rice Bran Sesame oil, coconut oil and mahua oil - Some frangrance is added as well - The applicant approached the AAR seeking to know whether Pooja Oil can be classified under Tariff item 1518 of Schedule I taxable at 5% or under Schedule II taxable at 12% of Notfn No 01/2017-CT(R).
Held - The Pooja Oil is classified under tariff heading 1518, being inedible mixture, is covered under Entry 27 of Schedule II of the Notfn No 01/2017-CT(R) and is taxable at 6% CGST, 6% KGST and 12% under IGST Act: AAR
Application disposed of: AAR
2019-TIOL-341-AAR-GST
Pattabi Enterprises
GST - The applicant is a partnership firm engaged in manufacturing Cartons, Corrugated boxes, paper folders, sleeves, other packaging containers, labels, tags, pamphlets, booklets, brochures, leaflets and other printed matter falling under HSN Code 48 and 49 - It approached the AAR seeking to know whether access card printerd and supplied by it based on content provided by customers is rightly classifiable under HSN Code 4901 10 20 under the description brochures, leaflets and similar printed matter whether or not in single sheet - It also sought to know if such access cards attract GST rate of 2.5% CGST, 2.5% SGST and 5% IGST in case of intra-State supplies.
Held - The supply of access cards and similar material printed by the applicant with the contents supplied by the recipient of supply are classifiable under SAC 9989 and liable to tax under 9% CGST and 9% KGST and 18% IGST: AAR
- Application disposed of: AAR
2019-TIOL-340-AAR-GST
Poppy Dorothy Noel
GST - The applicant runs a proprietory concern engaged in providing accomodation services to various corporates, including SEZ units - The applicant approached the AAR seeking to know whether the IGST is 0% for the invoices raised to the SEZ units, even if the accomodation services were rendered outside the SEZ zone.
Held - The supply of accomodation services to the SEZ units is an inter-State supply u/s 7(5)(b) of the IGST Act - If it is for the authorized operations, then it is covered under zero rate supplies u/s 16(1) of the IGST Act - If for non-authorized operations, then it would not be covered under zero-rated supplies u/s 16(1) of the IGST Act and hence taxable at 18% IGST with the place of supply being the provision of such services: AAR
-Application disposed of: AAR
2019-TIOL-339-AAR-GST
Gupta Steel Udyog
GST - Cattle feed/Poultry feed manufactured by the applicant on job work basis is not "Support services to agriculture, forestry, fishing, animal husbandry" - services not covered under SAC 9986 - same falls under heading 9988 and attracts GST @5%, Sr. no. 26(g) of 11/2017-CTR: AAR
- Application disposed of: AAR
2019-TIOL-338-AAR-GST
PS Electricals
GST - The applicant company is engaged in works contract of design, erection, testing, commissioning, including pre-commissioning activities related to or incidental to installation of transformers and supply of electrical equipment and transformers - It approached the AAR seeking to know the rate of tax applicable to composite supply of works contract as per Section 2(119) of the CGST Act undertaken by the application, between 12% and 18% - It also sought to know that if the GST rate is 18% as per Sr No 3 of Heading 9954 in Notfn No 11/2017-CT(R), then whether it would be in order for the applicant to charge GST @ 12% or is the rate 18% only.
Held - The rate of tax applicable to the composite supply of works contract as defined u/s 2(119) of the CGST Act undertaken by the applicant is to be charged at 9% under the CGST Act and 9% under the SGST Act - Moreover, the amendments to Notfn No 11/2017-CT(R) has no effect on the taxability of the transactions of the applicant as they are covered under Sr No 3(ii) of Notfn No 11/2017-CT(R) and the transactions are not covered under Sr No 3(ix) of the Notfn: AAR
- Application disposed of: AAR
2019-TIOL-337-AAR-GST
N Ranga Rao And Sons Pvt Ltd
GST - The applicant company is engaged in manufacturing Incense sticks, Dhoop, Air fresheners and pooja kits - It used raw materials such as raw agarbathi, aroma material, packing material and others as inputs as well as services such as marketing & distribution service, manpower service, job work service and rental service, freight and forwarding services as input services - The applicant approached the AAR seeking to know whether it is eligible to claim refund of accumulated ITC on both inputs and input services where a scenario of inverted duty structure exists - It also sought to know if provisions of Notfn No 21/2018-CT and Notfn No 26/2018-CT are applicable upon it.
Held - Since the jurisdictional refunding authority is an adjudicating authority and any decision rendered is appealable under the Act before the appellate authority concerned - The AAR is not the appropriate forum for entertaining such issues - Hence the application is not maintainable and merits being rejected: AAR
Application dismissed: AAR
2019-TIOL-336-AAR-GST
Fulcrum Info Services LLP
GST - Applicant is not just preparing the document but performs activities on day to day transactions of Juniper Inc. like screening of restricted parties, screening of orders, screening of shipments, maintenance of shipping documents, doing manual processing of transactions on HOLD, auditing of entries, record keeping etc. - Such Back-end support services provided by applicant to Juniper Inc. under agreement is classifiable as "Support Services", SAC 9985 99, 11/2017-CTR - services cannot be designated as Intermediary services: AAR
- Application disposed of: AAR
2019-TIOL-335-AAR-GST
GDC Dimension Data Pvt Ltd
GST - IT Support services are covered under SAC 998313 and IT Managed Services are covered under SAC 998316, 11/2017-CTR: AAR
- Application disposed of: AAR
