Sitaram Roadways (URP) Vs State of Gujarat

GST - Supply of turnkey engineering, procurement and construction (EPC) contract for construction of solar power plant wherein both goods and services are supplied is a Composite supply; contract being a Works Contract u/s 2(119) of the Act; covered under 3(ii) of 11/2017-CTR upto 31.12.2018 and from 01.01.2019 taxable on values worked out separately for goods and services, under Entry no. 38 of 11/2017-CTR as amended and Entry 234 of Schedule I of 1/2017-CTR as amended and the values should be as per the explanation provided therein: AAR

- Application disposed of: AAR

GST - Applicant had already filed an application in November 2017 seeking an advance ruling before the Gujarat Authority for Advance Ruling in respect of classification of the product ‘Fanta Fruity Orange', which question has also been raised in the instant application - since the question has already been decided by the Gujarat AAR on 30.03.2019, instant application is liable for rejection in view of s.98(2) of the CGST Act, 2017: AAR

- Application rejected: AAR

GST - The applicant claimed to have effected sale of cattle feed in cake form, locally as well as through inter-State sale - The applicant approached the AAR seeking to know the classification of cattle feed in cake form.

Held - Cattle Feed in cake form is classifiable under Heading 23099010 and is exempted as per Sr No 102 of Notfn No 2/2017-CT(R) and Sr No 102 of Notfn No II(2)/CTR/532(d-5)/2017 and in case of inter-State supplies, vide Sr No 102 of Notfn No 2/2017-IT(R): AAR

- Application disposed of: AAR

GST - The applicant-company is part of the Syngenta Group which is headquartered in Switzerland and is presently engaged in providing R&D services on agrochemical products to group companies across the globe - The applicant approached the AAR seeking to know whether the activity of technical testing carried out by it can be treated as zero rated supply - If not, then whether the applicant is liable to pay IGST on such supply.

Held - The services provided by the applicant do not fall within the definition of export of service u/s 2(6) of the IGST Act - Besides, the applicant is liable to pay CGST and SGST on such supply of service: AAR

- Application disposed of: AAR

GST - The applicant claimed to be engaged in selling Cattle Feed locally as well as in Inter-State sale - The applicant approached the AAR seeking to know the classification of cattle feed in cake form.

Held - The product Cattle Feed in cake form manufactured by the applicant is classifiable under Chapter Heading 23099010 and stands exempted as per Sr No 102 of Notfn No 2/2017-CT(R) and Sr No 102 of Notfn No II(2)/CTR/532(d-5)/2017 and in case of inter-State supplies vide Sr No 102 of Notfn No 2/2017-IT(R): AAR

- Application disposed of: AAR

GST - The applicant-company with 100% participation by way of equity by the State Governments and has been appointed as the State-level nodal agency to take up the sewerage projects - It approached the AAR seeking to know if Project Management Services provided by it would qualify as an activity in relation to functions entrusted to Panchayat or Municipality under Article 243G or Artucle 234W - It also sought to know if supervision fees received for such servides qualify as Pure services (excluding works contract service or other composite supplies involving supply of any goods) as provided in Sr No 3 of Notfn No 12/2017-CT(R) - It also sought to know if the applicant would qualify as govenmental authority or government entity.

Held - The services provided by the applicant apparently fall in the list of services enumerated under Sr No 6 of the 12th Schedule of Article 243W of the Constitution, thus qualifying the admissibility criteria - Supervision fee received for such services qualify as Pure Service (excluding works contract service or other composite supplies involving supply of any goods) provided to a Govt authority by way of an activity in relation to any function entrusted to a Panchayat or Municipality under Article 243G or Article 243W of the Constitution and are exempted from CGST under Sr No 3 of Notfn No 12/2017-CT(R) - Moreover, the applicant qualifies as a Govt authority or Govt entity u/s 2(16) of the IGST: AAR

- Application disposed of: AAR

GST - The applicant is engaged in manufacturing and production of Loose Cotton, Cotton Seeds, Cotton Seed Oil and Cotton Seed Oil cake from raw materials - The raw cotton, loose cotton, cotton seeds, cotton seed oil is taxable @ 5% under GST and Cotton Seed Oil cake is taxable @ 0% under GST - The applicant approached the AAR seeking to know the treatment of ITC claim in respect of the various products produced by it.

Held - As per Section 17(2) of the CGST Act, the amount of credit shall be restricted to so much of the input tax that is attributable to the taxable supplies including zero rated supplies - As the cotton seed oil cake is exempt from GST, the applicant has to reverse the amount of credit attributable to the supply of Cotton Seed Oil Cake as per provisions and procedure prescribed u/s 17(2) of the CGST Act r/w Rule 42 of the CGST Rules - Besides, the provision of apportionment of ITC u/s 17 of CGST Act would be applicable on the by-product Cotton Seed Oil Cake - Moreover, the applicant is eligible to claim ITC on Raw Cotton purchased from farmer on whom tax @ 5% is paid under RCM u/s 16 of the CGST Act - However, the credit shall be restricted to so much of the input tax as is attributable to the taxable supplies including zero rated supplies as per Section 17(2) of the Act - The ITC on Plastic Bags is eligible as per Section 16 of the CGST Act but in the instant case as the applicant is using Plastic Bags exclusively for packing Cotton Seed Oil Cake which is exempt from GST - Therefore the applicant must reverse the ITC on plastic bags as per Section 17(2): AAR

- Application disposed of: AAR

GST - The applicant is a Govt Department involved in tranmission and distribution of electrical energy to the general public - It is engaged in supply, erection, testing and commissioning of various equipment - The applicant approached the AAR seeking to know the classification of various activities undertaken by the Goa Electricity Department.

Held - The applicant is liable to pay CGST @ 9% and SGST @ 9% on various works/activity undertaken by them except on hiring of vehicles - The applicant is also liable to pay CGST @ 2.5% and SGST @ 2.5% or CGST @ 6% and SGST @ 6% on hiring of vehicles subject to the conditions specified in Notfn No 20/2017-CT(R): AAR

- Application disposed of: AAR

GST - The applicant is a proprietorship concern engaged in providing works contract services - It was registered under the erstwhile tax regime and was discharging service tax on works contract services only and undertook work for government and private entities - The applicant approached the AAR seeking to know the GST rate on sub-contract activity for earthwork in relation to construction of access controlled Nagpur-Mumbai Super Communication Expressway.

Held - The rate of GST on earthwork will be 18%, being 9% CGST and 9% SGST: AAR

- Application disposed of: AAR