#GSTCASE-99-SUMMARY AND REFERENCES OF RULINGS BY AAR-TELANGANA
CA ARPIT HALDIA
Orders by AAR are coming thick and fast. Although binding precedent of orders is very limited but still these decisions help us in having a broader understanding of law. In the present series we would be giving a birds eye view of the decisions by AAR alongwith the relevant subject and facility to download the detailed order
|AAR||Name of the Ruling||Question under Advance Ruling||Subject-1||Subject-2||Subject-3||Held||Whether decided by AAAR|
|Telangana||Sammarth Overseas & Credits (P.) Ltd.||Issue to be decided:|
(i) Classification of Goods- “Roof Ventilators”
(ii) Rate of Tax on “Roof Ventilators”
|HSN-8414||–||–||Roof Ventilators falls under Schedule-III of Notification No. 1/2017 – Central Tax (Rate) to GST Act, 2017 as amended and attracts a tax rate of 18% (CGST 9% + TGST 9%) w.e.f. 15-11-2017.|
|Telangana||Maheshwari Stone Supplying Co.||(i) In which Chapter the commodity called “Polished/Processed limestone slabs” falls?|
(ii) Under which HSN Code the above commodity comes?
(iii) Can it be classified as “Mineral substances not elsewhere specified or included” which is mentioned under HSN Code 2530?
(iv) Can it be classified under any of the HSN Codes 2515/2516/2521?
(v) Can it be retained under HSN Code 25 with inaugural phrase of “Goods not mentioned elsewhere” as mentioned at the start of column of 5%?
|HSN-2515||HSN-2516||HSN-6802||Polished/Processed limestone slabs” are correctly classifiable under heading 6802 of the GST Tariff.||Yes|
|Telangana||Macro Media Digital Imaging (P.) Ltd||i) Whether the printed advertisement materials classifiable as ‘supply of goods?|
ii) If yes, whether it is classifiable under chapter heading 4911 of first schedule to Customs Tariff Act, 1975?
|HSN-4911||–||–||i) The printed advertisement materials manufactured and supplied by the applicant are classifiable as ‘supply of goods’.|
ii) The printed advertisement material are classifiable under chapter heading 4911 of the GST Tariff and the rate of tax applicable is 6% CGST + 6% SGST as given in the Notification No. 1/2017 – Central Tax (Rate)dated 28.06.2017,(G.O.Ms No. 110, Revenue (CT-II) Department, Dt. 29-06-2017)
|Telangana||Nagarjuna Agro Chemicals (P.) Ltd.||Applicant has sought advance ruling on Rate of Tax on “Agricultural Soil testing Minilab and its Reagent Refills”||HSN-8201||HSN-9027||–||Agricultural Soil testing Minilab and its Reagent Refills” are classifiable under Tariff heading 9027 of the GST Tariff and tax rate applicable is 9% CGST +9% SGST.|
|Telangana||Lyophilization Systems India (P.) Ltd.||The rate of tax applicable as on 15.11.2017 on the Lyophilizers- Machinery for the plant which is being cleared under chapter heading 8419.||HSN-8419||–||–||The tax rate leviable on supply of ” Lyophilizers” falling under the tariff heading 8419 of the GST Tariff is 9% CGST + 9% SGST.||No|
|Telangana||Manjira Machine Builders (P.) Ltd.||i) Is the concessional tax rate of 5% as given under Notification No. 47/2017, dated 14.11.2017 is applicable only for Inter-State sales i.e., on IGST or also applicable for sales within the state i.e., on SGST & CGST.|
(ii) If this concessional tax rate of 5% is applicable for both Inter-State and within the state sales, then can we avail the Input Tax Credit (ITC) for the raw materials used for these supplies.
|Input Tax Credit||–||–||(i) The concessional rate of tax @ 5% as given under Notification No. 47/2017-Integrated Tax (Rate), dated 14.11.2017 is applicable only for Inter-State sales i.e., on IGST and concessional rate of tax @ 2.5% CGST + 2.5% SGST is applicable for Intra-State supplies as per Notification No. 45/2017-Central Tax (Rate), dated 14.11.2017.|
(ii) Input tax credit is available on the raw materials used for the supplies made under concessional rate of tax in accordance with Notification No. 47/2017-Integrated Tax (Rate) dated 14.11.2017 and Notification No. 45/2017-Central Tax (Rate), dated 14.11.2017.
|Telangana||Susheela Agrovet||HSN Code applicable for “Chicken waste intestine”.||HSN-0505||HSN Code applicable for “Chicken intestine waste” is 0505, and the rate of tax is 2.5% CGST + 2.5% SGST.|
|Telangana||Jupiter Solar Power Ltd.||The Applicant wants the Advance Ruling on the issue that whether the items used for manufacture of Solar Cells as listed in table above procured by Applicant can qualify as parts for manufacture of Photovoltaic Cells/Solar Cells to be covered under Entry 234 of Schedule-I of Notification No. 1/2017-Integrated Tax (Rate), dated 28-6-2017 or not.|
|HSN-8541||HSN-8486||HSN-3818||The items used for manufacture of solar cells as listed in Table A, procured by the applicant do not qualify to be termed as ‘Parts for the manufacture of Photovoltaic/ Solar cells’ for the purpose of Entry 234 of Schedule-I of Notification No. 1/2017-lntegrated Tax (Rate), dated 28-6-2017.|
|Telangana||K L Hi-tech Secure Print Ltd.||Whether supply of service of:|
(i) Printing of Pre-examination items like question papers, OMR sheets (Optical Mark Reading), answer booklets;
2. What would be the classification and the applicable GST rate, for the supply of Printing of cheque book?
3. What would be the classification and the applicable GST rate, for the printing and supply of Aadhaar Cards on paper?
4. What would be the classification and the applicable GST rate, for the printing and supply of Polyvinyl chloride (PVC) Cards?
|HSN-9992||HSN-9988||HSN-3920||1. The supply of service to ‘educational institutions’ for conducting of examinations are eligible for exemption under entry No.66 of Notification No. 12/2017- Central Tax (Rate) dt. 28.6.2017.|
2. The supply of ‘Printing of cheque books’ (where the paper is being supplied by the banks) are classifiable under heading 9988 and attracts GST @ 5% (2.5% CGST + 2.5% SGST).
3. The supply of cheque books (where the printing paper and inks are being borne by the applicants) are classifiable under heading 4907 of GST Tariff as goods and would not attract any GST as they are exempted supply in terms of Serial No. 118 to the Notification No.02/2017-Central Tax (Rate) dated 28.06.2017.
4. The supply of Aadhaar Cards are classifiable under heading 9989 of GST Tariff and attracts GST @ 12% ( 6% CGST + 6% SGST) in terms of S.No.27 of Notification No.11/2017-Central Tax (Rate) dated 28.06.2017 as amended.
5. The printing and supply of Polyvinyl chloride cards (PVC) are classifiable under heading 3920 of GST Tariff and attracts 18% GST (9%CGST + 9%SGST) in terms of S.No.106 of Schedule III of Notification No.1/2017-Central Tax (Rate) dated 28th June, 2017.
|Telangana||Gowra Ventures (P.) Ltd.,||1. Whether in the facts and circumstances the pooling of land by way of amalgamation of the separate parcels viz Land 1 and Land 2 as described in the “Statement of relevant facts” would constitute a supply under the Central Goods and Services Tax Act, 2017 and Telangana Goods and Services Tax Act, 2017 (herein after referred to as Central and State GST Act)?|
2. Whether in the facts and circumstances construction activity undertaken by the Company, with respect to the share belonging to the Partners (as described in the “Statement of relevant facts”) would be treated a Supply of Service under the Central and State GST Act?
3. Whether in the facts and circumstances, the recovery of construction cost by the Company from the “Partners” would be the transaction value for purpose of Section 15 of the Central and State GST Act to be valued in accordance with Sec 15 read with Rule 30 of the Central Goods and Services Tax Rules 2017 and Telangana Goods and Services Tax Rules 2017 (Central and State GST Rules)?
4. Whether in the facts and circumstances the vesting of the constructed portion upon the “Partners”, would independently constitute a supply besides the supply on account of recovery of construction cost as aforesaid by the Company?
|Value of Supply||HSN-9954||Schedule II||1. The pooling of land by way of amalgamation of the separate parcels viz Land 1 and Land 2 as described in the “Statement of relevant facts” would not constitute a supply under the CGST/TGST Act, 2017.|
2. The activity undertaken by M/s Gowra Venture Pvt. Ltd., with respect to the share belonging to the partners (as described in the “Statement of relevant facts” of the subject Application) is a supply of service under the CGST/TGST Act, 2017.
3. The applicant is providing service to owners 2 to 8 who are related persons and therefore the value of the construction service supplied by M/s Gowra Ventures Pvt. Ltd shall be 110% of the cost of provision of the said service.
4. The vesting of the constructed portion upon the partners cannot be treated as an independent supply as neither any service nor any consideration has been received by owner1 for vesting of constructed portion to the partners (owners 2 to 8).
|Telangana||Prism Hospitality Services (P.) Ltd.||1. The applicant provides canteen services in organizations like Infosys etc., wherein the food is cooked in the premises of Infosys and “Sold” to the employees of the said organization at a price mutually agreed upon, it is done on a regular daily basis.|
2. The applicant provides its services of serving food – Breakfast + lunch & Dinner and any other food requirements from a Mess/Dining Hall to the trainees of the Training institution of banking such as SBIRD, Andhra Bank Staff College etc., Even here the food is prepared and sold/served to the trainees in the premises, where the trainees attend a residential programme and there are rooms for stay in the premises for the trainees.
3. The applicant operates student mess for students in Engineering Colleges(Higher Education) such as CVR College, and so on. The food is prepared and served in the hostel premises.
4. ** ** **
(a) In the Educational Institutions the applicant in some institutions also operate the canteen for the day scholar students and staff wherein food is prepared in the canteen and sold for consumption by the students/staff.
(b) In the so called student/staff canteen, certain bought out items like Ice Creams/Soft Drinks/Biscuit packets etc wherein the Maximum Retail price is printed on the item is also sold for consumption by the students/staff.
(c) The applicant also has a kitchen in Miyapur, where food is prepared and transported to some software companies where it is again “sold” to the company employees in the dining Hall. The software companies do not have kitchens because of safety reasons, but however, they have dining hall facilities. The Dining Hall/Cafeteria runs on a daily basis. A separate food license is Obtained by us for selling the food in this organization issued by GHMC.
(d) Applicant entity also provides Transport services to a training institute for carting food from one building to another for service/sale. The applicant entity charges them a separate transport charges.
|HSN-9963||Composite Supply||–||1. For the points raised at s.no. 1, 2, 3, 4(a), 4(b) and 5 of their application i.e., the activity of supply of food in canteens of office, factory, hospital, college, industrial unit etc. on contractual basis excepting that supply is not event based or on specific occasions, constitute supply of service in terms of amended Notification No.13/2018-Central Tax(Rate) dt.26.7.18 and is taxable at the rate of 2.5% CGST + 2.5% SGST and the supplier is not eligible for the input tax credit as per the condition stipulated therein.|
2. For the point raised at s.no.6 of their application where the applicant provides transport services to a training institute for carting food from one building to another for service/sale and the applicant charges a separate transport charges, the applicant needs to discharge GST on the gross amount (cost of Food + cost of Transportation ) at the rate of 18% GST.