Judgement >> AAAR

We reject the appeal filed by M/s. Myntra Designs Pvt Ltd and uphold the Advance Ruling No.KAR ADRG 33/2022 dated 14-09-2022 while modifying the findings in the manner discussed in this order.

Appellate Authority uphold the order AAR/GST/PB/0I6 dated 16" of August, 2022 issued by the Authority for Advance Ruling, Punjab and the appeal filed by the appellant M/s ESS ESS KAY ENGINEERING COMPANY PVT LTD.

1. Whether GST is applicable for the consideration received on sale of sites? If yes, at what rate and on what value?
2. Whether GST is applicable for the advance received towards sale of site? If yes, at what rate and on what value?
3. Whether GST is applicable on sale of plots after completion of works related to basic necessities?
4. If GST is chargeable on any of these transactions, can the applicant collect the GST grom the prospective buyers?
5. If GST is chargeable on any of these transactions whether the applicant is eligible for claiming Input Tax Credit that they pay on the expenses they incur on development?

Appellate Authority  uphold the Advance Ruling No. KAR/ADRG 23/2022 dated 12-08-2022 and dismiss the appeal filed by The Indian Hume Pipe Company Limited on all counts.

1. The supply of services by the applicant to BWSSB is covered by Notification No. 15/2021 CT (Rate) dated 18-11-2021 read with Notification No 22/2021 CT (Rate) dated 31-12-2021.
2. The applicable rate of tax on the supplies made by the aplicant to BWSSB is 18% w.e.f 1-1-2022 as per entry 3(xii) of Notf No 11/2017 CT (Rate) dated 28-06-2017.
3. In view of the ruling given at question (i) this question becomes redundant.

1. Whether the supply of goods or services for 'setting up of network would qualify as 'work contract' as defined in Section 2(119) of the CGST Act?
2. If supplies contemplated as per the contract with BSNL are not treated as works contract can these continue to qualify as composite supply? if yes what is the principle supply?
3. What is the rate of tax applicable to the supplies made under the contract?

The Maharashtra Appellate authority for Advance Ruling order in case M/s. Precision Camshafts Limited

The Maharashtra Appellate authority for Advance Ruling order in case M/s. Portescap India Pvt. Ltd

Whether supply of Aluminium Foil Type Winding Inverter Duty Transformer classifiable under Chapter Heading 8504 and parts of Transformer supplied/to be supplied for initial setting up of solar project falls under Sr. no. 234 in Schedule-I to Notification No. 01of 2017 Central Tax Rate dated 28th June 2017 and liable to Central GST 2.5% along with State GST at the rate of 2.5%

The Maharashtra Appellate authority for Advance Ruling order in case M/s. Worley Services India Pvt. ltd

(1) Whether, in the facts and circumstances of the case, the Applicant is obliged to pay GST on the forest permit fee paid by it under reverse charge mechanism?

(2) Alternatively, if GST is payable on forest permit fee paid by the Applicant, can services received by the Applicant be classifiable under heading 9973 of Notification No. 11/2017 Central Tax (Rate) dated 28th June, 2017 and thus be exigible to a lower rate of tax for the period prior to 01-01-2019?

1. Whether input tax credit (ITC) available to applicant on GST charged by service provider on canteen facility provided to employees working in factory? 2. If ITC is available as per question no. (1) above, whether it will be restricted to the extent of cost borne by the Applicant (employer)?

a)Whether printing of Pre examination items like question papers, OMR sheets (Optical Mark Reading), Answer booklets for conducting of an examination by the educational boards be treated as exempted supply of service in terms of Serial Number 66 of Notification NO.12/2017-CGST[Rate] dated 28-6-2017 as amended?
b)Whether printing of Post examination items like marks card, grade card, certificates to educational boards (up to higher secondary) after scanning of OMR Sheets and processing of data in relation to conduct of an examination be treated as exempted supply of service by virtue of in terms of Serial Number 66 of Notification No.12/2017-CGST[Rate] dated 28-6-2017 as amended?

1. Whether the procurement and distribution of drugs, medicines and other surgical equipment by APMSIDC on behalf of government without any value addition, and without any profit or loss, without even the intent to do business in the same amounts to Supply under Section 7 of CGST/SGST Act. ,

2)Whether the establishment charges received from the State Government as per G.O.Rt 672 dated 20-5-1998 and G.O.Rt 1357 dated 19-10-2009 by APMSIDC is eligible for exemption as per Entry 3 or 3A of Notification 12/2017 Central Tax (Rate)?

a)Whether administering of COVID-19 vaccination by hospitals is Supply of Good or Supply of Service. Whether administering of COVID-19 Vaccine by clinical establishments (Hospitals) qualify as “Health care services” as per Notification No. 12/2017 Central Tax Rate dated 28.06.2017?
b)Whether administering of COVID-19 vaccination by clinical establishment is exempt under GST Act?

The agreement between the appellant and the lessee is on built up area basis and not on the basis of unit cost of accommodation and hence, it cannot be treated as given for residential dwelling. The appellant is not extending accommodation to the students but to the lessee to whom the building is given on rent is providing accommodation to the students.

What would be SAC Code & GST Rate for the outward supply made by the applicant, in case of mangroves being cultivated and nurtured at coastal communities?

(1) whether applicant is required to be registered

(2) whether any particular thing done by the applicant with respect to any goods or services or both amounts to or results in a supply of goods or services or both, with in meaning of that term.

1. Whether GST exemption is applicable to applicant in respect of the pre and post Examination services being provided to the Educational Boards and Universities (including Open Universities)?

2. If answer to Q.No.1 is affirmative, whether the exemption is available to the applicant in case of the services are provided on sub-contract basis i.e., the applicant provides pre and post examination services to the main contractor who in turn provides the said services to the Educational Boards and Universities (including Open Universities)?

We uphold the order No. KAR ADRG 27/2022 dated 12/08/2022 passed by the Advance Ruling Authority and the appeal filed by the Appellant M/s. Sivantos India Pvt Ltd, No. 78, 4th Floor, Salarpuria Sattva Magnificia - Phoenix, Near Tin Factory, Old Madras Road, Doorvani Nagar, Bengaluru Urban, 560016, stands dismissed on all accounts.

We set aside the order of the lower Authority and remand the case to the Advance Ruling Authority for a fresh consideration after taking into account the observations made by us in this order. The appeal filed by the appellant M/s Myntra Designs Pvt Ltd, Sy No 8 to 14 and 55, Alyssa Begonia Clover Embassy Tech Village, Outer Ring Road, Devarbisanahalli Varthur Hobli, Bengaluru Urban, 560103 is disposed off on the above terms.

Appellate Tribunal modified the order of Tamil Nadu Advance Ruling Authority in the matter as under:The execution of works contract service for construction of residential quarters exclusively meant for the employees of NPCIL at Anuvijay township by the appellant is covered under entry Sl.No.3(vi) of Notification No. 11/2017-C.T.(Rate) dated 28.06.2017 and the corresponding SGST Notification for the period upto 31.12.2021.

1. Whether the execution of works contract services at Kundankulam Nuclear Power Project would be covered S.No vi (or) vii of Notification No.24/2017 dted 21.09.2017 attracting GST @ 12% or 18% ; and

2. The assessee had already charged GST @12% on its invoices for the works contract service provided. In case the rate of GST is determined to be 18% instead of 12% should they pay the differential tax through debit note under GSTR 1?

1. Does Medical insurance premium taken to provide health Insurance to the employees, pensioners and their family members, eligible for exemption as mentioned in Entry No. 3 of the Notification Number 12/2017 - Central Tax (Rate), dt 28th June, 2017.

2. Does Vehicle insurance Policy taken to provide Insurance to the vehicles owned by the Board, eligible for exemption as mentioned in Entry No. 3 of the Notification Number 12/2017 - Central Tax (Rate), dt 28th June, 2017.

1) Whether the seeds received, processed, packed and returned by the Applicant, as job worker, as seeds for sowing are ‘agricultural produce’ in terms of the definition under the Notification No. 12/2017- Central Tax (Rate) dated 28-06-2017 and 11/2017- Central Tax (Rate) dated 28-06-2017.

2) Whether the storage of the seeds in the storage facility/godowns, loading, unloading and packing of the seeds (heading No.9986) by the applicant - job worker on job work basis are exempt from payment of GST in terms of Sl.No.54(e) of the Notification No. 12/2017- Central Tax (Rate) dated 28-06 2017 and Sl.No.24(1)(e) of the Notification No. 11/2017- Central Tax (Ret) dated 28-06-2017 or any other entry/entries of the above notifications.

3) Whether the processes, namely, cleaning, drying, grading and treatment with chemicals (heading No.9986) carried out by the applicant - job worker on job work basis, are exempt from payment of GST in terms of Sl.No.54(c) and (h) of the Notification No. 12/2017- Central Tax (Rate) dated 28-06- 2017 read with the definition of "agricultural produce" there under and Sl.No.24(1)(c), (h) and (iii) of the Notification No. 11/2017- Central Tax (Rate)dated 28-06-2017 read with the definition of "agricultural produce" there under or any other entry/entries of the above notifications.

a) Whether GST is payable on the claim of INR Rs. 2,20,00,000/-for the HGCL share of sitting fees and other expenses paid by the applicant on the directions of the Arbitrators for an amount.

b) Whether GST is payable on the claim of INR Rs.1,15,80,62,000/- (including interest amount) on account of compensation of additional cost incurred due to delay in issue of drawings and failure of HGCL to handover site on time and refusal to issue the taking over certificate.

c) If the answer to questions (a) and (b) are in affirmative, then under what HSN Code and GST rate the liability is to be discharged by the Appellant, and at what time?

1. Whether liquidated damages recoverable by the applicant from Belectric India on account of delay in commissioning, qualify as a ‘supply’ under the GST law, thereby attracting the levy of GST?

2. If the answer to Question No. 1 is in the affirmative, what should be the time of supply when liability to pay GST is triggered?

1. Whether the seeds produced/ procured and processed, packed and sold by the Applicant as seeds for sowing are agricultural produce in terms of the definition under the Notification No. 12/2017- Central Tax (Rate) dated 28-06-2017 and 11/2017- Central Tax (Rate) dated 28-06- 2017.

2. Whether the storage of the seeds in the leased storage facility/godowns, loading, unloading and packing of the seeds (heading No.9986) by the job worker on job work basis are exempt from payment of GST in terms of Sl.No.54(e) of the Notification No. 12/2017- Central Tax (Rate)dated 28-06 2017 and Sl.No.24(1)(e) of the Notification No. 11/2017- Central Tax (Ret)dated 28-06-2017 or any other entry/entries of the above notifications.

3. Whether the processes, namely, cleaning, drying, grading and treatment with chemicals (heading No.9986) carried out by the job worker on job work basis are exempt from payment of GST in terms of Sl.No.54(c), (h) of the Notification No. 12/2017- Central Tax (Rate)dated 28-06-2017 read with the definition of "agricultural produce" there under and Sl.No.24(1)(c), (h) and (ill) of the Notification No. 11/2017- Central Tax (Rate)dated 28-06- 2017 read with the definition of "agricultural produce" thereunderor any other entry/entries of the above notifications.

4. Whether the transport of seeds from the farm lands to storage facility/godown of the applicant, transport of seeds from one storage facility/godown of the applicant to the other storage facility/godown of the applicant, transport of packed seeds from storage facility/godown of the applicant to the distributor and transport of sales-returns, if any, (heading No.9965 or 9967) is exempt from payment of GST in terms of Sl.No. 21(a) of the Notification No. 12/2017- Central Tax (Rate)dated 20-06-2017 or any other entry/entries of the above notifications.

5. In respect of the processes undertaken by the applicant, namely, cleaning, drying, grading, treatment with chemicals and packing (heading No.9986), for himself, whether any 'supply is involved in terms of section 7(a) of the CGST Act, 2017,so as to be taxable

Supply of imported goods i.e. component needed for Pneumatic Conveying System made by the appellant to its customers on High Sea sales basis will not be treated as supply of "goods" by vertue of entary 8(b) to the Schedule III of CGST Act, 2017 as amended, with effect from 01.02.2019 Howeever, the supply of "services" in relation thereto, if any, will fall under the purview of "supply" as defined under Section 7 of the CGST Act.

 Whether the medicines, consumables and implants used in the course of providing health care services to in-patients for diagnosis or treatment for patients opting with or without packages along with allied services i.e. (room rent/food/doctor fees etc.) provided by hospital would be considered as “Composite Supply” and accordingly eligible for exemption under the category “Health Care Services

Accordingly, we hold that the appeal filed by the Appellant is not admissible in eye of law and therefore, it is dismissed on the ground of limitation itself without going into the merits of the case.

The Maharashtra AAAR has set aside the MAAR Order No. GST-ARA-98/2019-20/B-72 dated 11.10.2021 by holding that both the impugned products, i.e., CRP Test Kit and HbAlc Test kit, will be classified under chapter heading 3002, and accordingly, both the product will attract GST at the rate of 5%
(CGST @2.5 % +SGST @2.5 %) in terms of the entry at SL No. 180 of the Schedule I to the Notification No. 01/2017-C.T. (Rate) dated 28.06.2017 read with entry at SI. No. 125 of the List I appended to the Schedule I to the Notification No. 01/2017-C.T. (Rate) dated 28.06.2017.

The Maharashtra AAAR has set aside the impugned Advance Ruling Order No. GST-ARA-109/2019- 20/8-112 dated 15.12.2021 by holding that the impugned product, CNG Dispenser, will be covered by SI. No. 422, Schedule III ofNotification No. 01/2017-Central Tax (Rate) dated 28.06.2017.

The Maharashtra AAAR do not find any reason to interfere with the Advance Ruling passed by the MAAR vide Order No. GST-ARA-19/2021-22/B-94 dated 10.11.2021 wherein it has been held that the Appellant-society is not eligible to avail ITC of the tax paid on the works contract services received from their appointed contractor in terms of the limitations provided under section 17(5)c) of the CGST Aet, 2017, as they cannot be said to be providing works contract services to their members.

 1. Whether the services provided by the applicant to the entities located outside India is covered under Section 13(2) of the Integrated Goods and Services Tax Act, 2017? 2. Whether the services provided by the applicant is liable to Central Goods and Service Tax and State Goods and Service Tax or Integrated Goods and Services Tax or is it eligible to be treated as ‘zero rated supply’ under Section 16 of the Integrated Goods and Services Tax Act, 2017.

The appellate, set aside the Ruling passed by the MAAR vide Order No. GST-ARA97/ 2019-20/B-91 dated 10.11.2021, by holding that since the impugned activities undertaken by the Appellant are not construed as  supply" in terms of section 7(I)(a) of the CGST Act. 20 I 7, the reimbursement amount paid by the Maharashtra Government to the Appellant for undertaking the activities specified under "One stop Crises Centre Scheme" floated by the Central Government, will not be subject to the levy of GST. Thus, the Appeal filed by the Appellant stands disposed of in above terms.

 1. Whether the product viz. ‘Paratha’ i.e. various varieties of Paratha produced by the applicant merit classification under HSN Code 19059090? 2. Whether the product, namely, ‘Paratha’ i.e. all varieties of Paratha produced by the applicant are chargeable to 5% GST (i.e. 2.5% SGST and 2.5% CGST) under Sl.No. 99A of Schedule-I of Notification No. 01/2017-CT (Rate) and Notification No. 01/2017-IT (Rate) dated 28-6-17?

Whether the sale of produces Distillery Wet Grain Soluble (‘DWGS’) and Distillery Dry Grain Soluble (‘DDGS’) – ‘Cattle feed’ undertaken by the applicant is covered under serial no 102 of Notification No. 02/2017 – Central Tax (Rate) dated 28 June 2017 and whether these commodities are exempt from payment of GST?

Is GST liable to be paid on leasing of Tank Containers taken from a supplier located outside India and the tank containers donot reach India ?

Advance Ruling No. and Date : GUJ/GAAR/R/05/2021 dated 20.01.2021

Questions before the Gujarat Authority for Advance Ruling [‘GAAR’], Goods and Service Tax and Ruling passed as:

"Ques. what would be the classification of 'Flavored Milk' sold under trode name of Power Sip?

Ans: 'Flavoured Milk' is clossifiable under Tariffltem 2202 99 30 of the First schedule of the Customs Tariff Act, 1975 as a "beverage containing milk".

GAAAR : We find that in similar facts of case the Appellate Authority for Advance Ruling, Tamil Nadu, vide its Order in Appeal No. AAAR/16/2021 (AR) dated 30.06.2021 in the case of M/s. Britannia Industries Ltd., held that flavoured milk is not classifiable under Tariff Heading 0402/0404 but classifiable under CTH 2202 99 30.

Held: We reject the appeal filed by appellant M/s Vadilal Industries Ltd and uphold the Advance Ruling No. GUJ/GAAR/R/05/2021 dated 20.01.2021 of the Gujarat Authority for Advance Ruling.

Advance Ruling No. and Date : GUJ/GAAR/R/25/2021 dated 09.07.2021

Questions before the Gujarat Authority for Advance Ruling [‘GAAR’], Goods and Service Tax as:

“The applicant are collecting GST of 12% (6% SGST + 6% CGST) on their items namely Sprayer pumps (manually operated) and stoves and paying the same to the Government. As per their view, the said items are used manually for only agriculture purpose so the rate of tax should be NIL. Please give advance ruling on the same”

Gujarat Authority for Advance Ruling [‘GAAR’] ruled as under –

(1) The product ‘Sprayer pumps’ (manually operated) manufactured and supplied by M/s. Adarsh Plant Protect ltd. are classifiable under Tariff item No.84248100 of the First Schedule to the Customs Tariff Act, 1975 (51 of 1975). Applicability of GST rate on the said product would be 18% GST (9% SGST + 9% CGST) upto 24.01.2018 and 12% GST (6% SGST + 6% CGST) with effect from 25.01.2018 as per Notification No:01/2017-Central Tax(Rate) dated 28.06.2017 (as amended from time to time) issued under the CGST Act, 2017.

(2) The product ‘Stoves’ manufactured and supplied by M/s. Adarsh Plant Protect ltd. are classifiable under Tariff item No.73218990 of the First Schedule to the Customs Tariff Act, 1975 (51 of 1975). Applicability of GST rate on the said product would be 12% GST (6% SGST + 6% CGST) as per Notification No: 01/2017-Central Tax (Rate) dated 28.06.2017 issued under the CGST Act, 2017.

(3) The aforementioned products of the applicant do not find mention under any of the entries of the exemption notification No.02/2017-Central Tax (Rate) dated 28.06.2017 issued under the CGST Act, 2017.

GAAAR: The appellant’s product viz. manually hand operated seed dressing, coating and treating drum is covered within the description provided under the HSN Code 8436. The appellant’s product in its use as well as its function is as described under the said HSN code. Therefore, we find that the GAAR has correctly classified the product in question under Chapter Heading 8436 and tariff item 8436 80 90.

Held: We reject the appeal filed by appellant M/s. Adarsh Plant Protect Ltd and uphold the Advance Ruling No. GUJ/GAAR/R/25/2021 dated 09.07.2021 of the Gujarat Authority for Advance Ruling.

Advance Ruling No. and Date : KAR ADRG 3/2022 dated 21/01/2022

Questions before the Karnataka Authority for Advance Ruling [‘KAAR’], Goods and Service Tax :

a. Whether the income earned from conducting Guest Lectures, amounts to or results to as taxable supply of services?

b. Whether the income earned from Research and Training Projects funded by Ministries of Government of India and State Government of Karnataka, amounts to or results to as taxable supply of service to be taxed at Nil rate as per Heading 9992?

c. Whether the income earned from Research and Training Projects funded by Ministries of Government of India and State Government of Karnataka, amounts to or results to as Taxable Supply to be taxed at (Integrated Tax) 18% under Heading 9983?

Karnataka Authority for Advance Ruling [‘KAAR’], Goods and Service Tax and Ruling:

a. The income earned from conducting Guest Lectures, amounts to taxable supply of services as per entry No. (ii) of 21 of Notification No. 11/2017-Central Tax (Rate) dated: 28.06.2017.

b. In the absence of the details of the recipient of service, the service in question merits classification under SAC 9983 and attracts GST at the rate of 18%.

c. In the absence of the details of the recipient of service, the service in question merits classification under SAC 9983 and attracts GST at the rate of 18%.

KAAAR: It is evident that this Appellate Authority being a creature of the statute is empowered to condone a delay of only a period of 30 days after the expiry of the initial period for filing appeal. As far as the language of the proviso to Section 100 (2) of the CGST Act is concerned, the crucial words are "not exceeding thirty days". To hold that this Appellate Authority could entertain this appeal beyond the extended period under the proviso would render the phrase "not exceeding thirty days" wholly otiose. No principle of interpretation would justify such a result. Therefore, we hold that we are not empowered to condone the delay of 27 days beyond the condonable period, in filing this appeal.

Since the appeal cannot be allowed to be presented on account of time limitation, the question of discussing the merits of the issue in appeal does not arise.

Held: We dismiss the appeal filed by the appellant Sri. Sairam Gopalkrishna Bhat, No 401, Dwarkemayee Building, 16th Cross, Jnanabharathi 2nd Block, Nagadevanahalli, Bengaluru 560056, on grounds of time limitation.

Advance Ruling No. and Date : 04/WBAAR/2020-21 dated 29.06.2020

Questions before the West Bengal Authority for Advance Ruling [‘WBAAR’], Goods and Service Tax : 

(i) Whether the instant composite supply of service by way of milling of food grains into flour to Food & Supplies Department, Govt. of West Bengal for distribution of such flour under Public Distribution System is eligible for exemption under entry No. 3A of Notification No. 12/2017-Central Tax (Rate) dated 28.06.2017?

(ii) What shall be rate of GST on such milling, if it does not fall under entry No. 3A?

which were ruled as: 

(1) In the instant case, value of supply shall be the consideration in money and shall also include all the components towards non-cash consideration, as discussed. This composite supply of services by way of milling of food grains into flour (atta) to Food & Supplies Department, Govt. of West Bengal for distribution of such flour under Public Distribution System is eligible for exemption under entry serial no. 3A of the Notification No. 12/2017-Central Tax (Rate) dated 28.06.2017 only when the value of goods involved in such composite supply does not exceed 25% of the value of supply.

(2) If the value of goods involved in such composite supply exceeds 25% of the value of supply, the supply shall attract tax @ 5% (CGST @ 2.5% + WBGST @ 2.5%) vide entry serial No. 26 of the Notification No. 11/2017- Central Tax (Rate) dated 28.06.2017 [corresponding State Tax Notification No. 1135-FT dated 28.06.2017].

WBAAR: The WBAAR, in its advance ruling dated 31.12.2021, has observed that the instant supply is a composite supply. The WBAAR has also observed that the instant composite supply undisputedly fulfils criteria (i) and (ii) in Para 7 above. Now, it has been observed that the value of goods in the instant composite supply is lesser than 25% of the total supply value. So the instant composite supply fulfils all the three criteria for qualifying for exemption under entry no. 3A of Notification No. 12/2017-Central Tax (Rate) dated 28.06.2017 (corresponding State Notification No. 1136 FT dated 28.06.2017) as listed in para 7 above.

Held: We rule that in the instant case the supply of fortified wholemeal flour to the Food & Supplies Department, Government of West Bengal will fall under entry no. 3A of Notification No. 12/2017-Central Tax (Rate) dated 28.06.2017 (corresponding State Notification No. 1136 FT dated 28.06.2017) and exempt from taxation.

The Advance Ruling No. 16/WBAAR/2021-22 dated 31.12.2021is modified to this effect and the Appeal stands disposed of accordingly.

Advance Ruling No. and Date : 18/WBAAR/2021-22 dated 31.12.2021

Questions before the West Bengal Authority for Advance Ruling [‘WBAAR’], Goods and Service Tax : 

(i) Whether the instant composite supply of service by way of milling of food grains into flour to Food & Supplies Department, Govt. of West Bengal for distribution of such flour under Public Distribution System is eligible for exemption under entry No. 3A of Notification No. 12/2017-Central Tax (Rate) dated 28.06.2017?

(ii) What shall be rate of GST on such milling, if it does not fall under entry No. 3A?

West Bengal Authority for Advance Ruling [‘WBAAR’], Goods and Service Tax ruled as:

(1) In the instant case, value of supply shall be the consideration in money and shall also include all the components towards non-cash consideration, as discussed. This composite supply of services by way of milling of food grains into flour (atta) to Food & Supplies Department, Govt. of West Bengal for distribution of such flour under Public Distribution System is eligible for exemption under entry serial no. 3A of the Notification No. 12/2017-Central Tax (Rate) dated 28.06.2017 only when the value of goods involved in such composite supply does not exceed 25% of the value of supply.

(2) If the value of goods involved in such composite supply exceeds 25% of the value of supply, the supply shall attract tax @ 5% (CGST @ 2.5% + WBGST @ 2.5%) vide entry serial No. 26 of the Notification No. 11/2017- Central Tax (Rate) dated 28.06.2017 [corresponding State Tax Notification No. 1135-FT dated 28.06.2017].

WBAAR: The WBAAR, in its advance ruling dated 31.12.2021, has observed that the instant supply is a composite supply. The WBAAR has also observed that the instant composite supply undisputedly fulfils criteria (i) and (ii) in Para 7 above. Now, it has been observed that the value of goods in the instant composite supply is lesser than 25% of the total supply value. So the instant composite supply fulfils all the three criteria for qualifying for exemption under entry no. 3A of Notification No. 12/2017-Central Tax (Rate) dated 28.06.2017 (corresponding State Notification No. 1136 FT dated 28.06.2017) as listed in para 7 above.

Held: We rule that in the instant case the supply of fortified wholemeal flour to the Food & Supplies Department, Government of West Bengal will fall under entry no. 3A of Notification No. 12/2017-Central Tax (Rate) dated 28.06.2017 (corresponding State Notification No. 1136 FT dated 28.06.2017) and exempt from taxation.

The Advance Ruling No. 18/WBAAR/2021-22 dated 31.12.2021is modified to this effect and the Appeal stands disposed of accordingly.

Advance Ruling No. and Date : GUJ/GAAR/R/04/2021 dated 20.01.2021

Questions before the Gujarat Authority for Advance Ruling [‘GAAR’], Goods and Service Tax and Ruling passed as:

Question: What would be the classification of “Flavored Milk”?

Answer : ‘flavoured milk’ is classifiable under Tariff Item 2202 99 30 of the First Schedule to the Customs Tariff Act, 1975 as a “beverage containing milk”.

GAAAR: We find that in similar facts of case the Appellate Authority for Advance Ruling, Tamil Nadu, vide its Order in Appeal No. AAAR/16/2021 (AR) dated 30.06.2021 in the case of M/s. Britannia Industries Ltd., held that flavoured milk is not classifiable under Tariff Heading 0402/0404 but classifiable under CTH 2202 99 30.

Held: He reject the appeal filed by appellant M/s. Gujarat Co-operative Milk Marketing Federation Ltd and uphold the Advance Ruling No. GUJ/GAAR/R/04/2021 dated 20.01.2021 of the Gujarat Authority for Advance Ruling.

 Advance Ruling No. and Date : GUJ/GAAR/R/75/2020 dated 17.09.2020

Questions before the Gujarat Authority for Advance Ruling [‘GAAR’], Goods and Service Tax and Ruling passed as:

Question: Whether the services provided by the applicant in affiliation to/ partnered with Gujarat University and providing education for degree courses to students under specific curriculum as approved by the Gujrat University, for which degrees are awarded by the Gujarat University are exempt from GST, vide Entry No. 66 of the Notification No.12/2017-Central Tax (Rate) dated 28th June, 2017?

Answer: The applicant is an educational consultant and a professional in the fields of Computer Animation, IT-Infrastructure Management System and Mobile Computing & Application Education, which uses their experience and knowledge in teaching, to help with curriculum development and other issues to Gujarat University and parents face. The applicant designs and handles the courses, namely M.Sc.-IT in Animation, M.Sc.-IT in Mobile application, M.Sc.-IT in IMS (Infrastructure Management Systems) and M.Sc.-IT in Network Securities, which undertaken by Gujarat University. The applicant then on the basis of the approved courses, provide training to the students. Further, the applicant also helps to administer the admission and fees collection process. Training given by the applicant as a Private Institutes would not be covered, as such training does not lead to grant of a recognized qualification. Thus, the applicant does not have any specific curriculum and does not conduct any examination or award any qualification/degree. Hence, the applicant does not qualify as educational institution.

We have no hesitation to conclude that the applicant is not at all entitled for exemption in respect of said services provided by the applicant to Gujarat University, under Entry at Sr. No. 66 of the exemption Notification No.12/2017-Central Tax (Rate) dated 28.06.2017, as amended.

Answered in Negative, as discussed above.

GAAAR: We find that the issues mentioned above need to be re-examined at the level of GAAR, in view of the fact that it appears that the principles of natural justice have not been followed.

Held: The case is remanded back to the Gujarat Authority for Advance Ruling (GAAR) to issue necessary ruling after hearing the appellant afresh.

1. Whether the construction of Institute of Security and Law Enforcement studies at Addu City in Maldives, constructed for Government of Maldives under an Memorandum of Understanding between India and Maldives falls within the GST net?

2. Who is the recipient of service in the instant case?

3. What is the place of supply in respect of the works contract for setting up of the Institute of Security and Law Enforcement Studies at ADDU City in Maldives?

1. Whether supply is classifiable as composite supply of works contract service

2. Whether AMC can be included within the ambit of above composite supply

Question-1 Whether the work awarded to the appellant is a composite supply of works contract service.          

Answer-1 Yes, it is a composite supply of works contract service.       

Question-2 Whether the benefit of Sl No. 3(v)(a) of the Notification No. 11/2017-Central Tax (Rate), as amended vide Notification No. 20/2017-Central Tax (Rate) ia applicable ti the subject works.

Answer-2 They are eligible to take the benefit of Sl No. 3(v)(a) of the Notification No. 11/2017-Central Tax (Rate), as amended vide Notification No. 20/2017-Central Tax (Rate) for the subject work.

Advance Ruling No. and Date : GUJ/GAAR/R/2/2021 dated 20.01.2021

Questions before the Gujarat Authority for Advance Ruling [‘GAAR’], Goods and Service Tax and Ruling passed as:

Question: Whether the applicability or determination of liability to pay Tax on our said goods at 5% GST rate is legally correct and in order in terms of Schedule-I of Notification No.1/2017-Integrated Tax(Rate) or not?”

Answer: In view of non-submission of copies of contract/agreement/tender/ technical specifications as mentioned above, by the applicant M/s. Apar Industries ltd., Plot No.189/P1, GIDC Road, Tal. Umbergaon, Valsad, it would not be possible for us to give a decision in the matter for the reasons discussed hereinabove.

GAAAR : We find that the product in question viz. Solar DC Cables supplied for Solar Power Generating System, classified under Chapter 85. forms integral part of Solar Power Generating System is eligible for benefit of entry at Sr.No. 234 appearing under Schedule-I to Notification No.01/2017- Integrated Tax (Rate) dated 28.06.2017 and liable to be taxed @ 5% GST upto 30.09.2021. Thereafter the same will be covered under entry Sr.No. 201A appearing under Schedule-II to the Notification No.01/2017-IT (Rate) dated 28.06.2017 amended vide Notification No. 08/2021-IT (Rate) dated 30.09.2021 and liable to be taxed @ 12% GST w.e.f. 01.10.2021.

Held: We modify the Advance Ruling No. GUJ/GAAR/R/02/2021 dated 20.01.2021 of the Gujarat Authority for Advance Ruling in the case of M/s. Apar Industries Limited and hold that -

(i) The product Solar DC Cables to be used in the manufacture of Solar Power Generating System/ Solar Power Generator is eligible for benefit of Entry at Sr.No. 234 under Schedule-I of Notification No.01/2017- Integrated Tax (Rate) dated 28.06.2017 and liable to be taxed at 5% GST upto 30.09.2021 and thereafter under Entry at Sr.No.201A of Schedule-II of Notification No.01/2017-IT (Rate) dated 28.06.2017 amended vide Notification No. 08/2021-IT (Rate) dated 30.09.2021 and liable to be taxed at 12% GST w.e.f. 01.10.2021.

Advance Ruling No. and Date : GUJ/GAAR/R/2/2021 dated 20.01.2021

Questions before the Gujarat Authority for Advance Ruling [‘GAAR’], Goods and Service Tax and Ruling passed as:

Question: Whether the applicability or determination of liability to pay Tax on our said goods at 5% GST rate is legally correct and in order in terms of Schedule-I of Notification No.1/2017-Integrated Tax(Rate) or not?”

Answer: In view of non-submission of copies of contract/agreement/tender as mentioned above, by the applicant M/s. Apar Industries ltd., Plot No.189/P1, GIDC Road, Tal. Umbergaon, Valsad, it would not be possible for us to give a decision in the matter for the reasons discussed hereinabove.

GAAAR: We find that the product in question viz. Solar LT/HT XLPE Cables supplied for Solar Power Generating System, classified under Chapter 85, forms integral part of Solar Power Generating System is eligible for benefit of entry at Sr.No. 234 appearing under Schedule-I to Notification No.01/2017- Integrated Tax (Rate) dated 28.06.2017 and liable to be taxed @ 5% GST upto 30.09.2021. Thereafter the same will be covered under entry Sr.No. 201A appearing under Schedule-II to the Notification No.01/2017-IT (Rate) dated 28.06.2017 amended vide Notification No. 08/2021-IT (Rate) dated 30.09.2021 and liable to be taxed @12% GST w.e.f. 01.10.2021.

Held: We modify the Advance Ruling No. GUJ/GAAR/R/03/2021 dated 20.01.2021 of the Gujarat Authority for Advance Ruling in the case of M/s. Apar Industries Limited and hold that -

(i) The product Solar HT/LT XLPE Cables to be used in the manufacture of Solar Power Generating System/ Solar Power Generator is eligible for benefit of Entry at Sr.No. 234 under Schedule-I of Notification No.01/2017- Integrated Tax (Rate) dated 28.06.2017 and liable to be taxed at 5% GST upto 30.09.2021 and thereafter under Entry at Sr.No.201A of Schedule-II of Notification No.01/20I7-IT (Rate) dated 28.06.2017 amended vide Notification No. 08/2021-IT (Rate) dated 30.09.2021 and liable to be taxed at 12% GST w.e.f. 01.10.2021.

Advance Ruling No. and Date : GUJ/GAAR/R/73/2020 dated 17.09.2020

Questions before the Gujarat Authority for Advance Ruling [‘GAAR’], Goods and Service Tax and Ruling passed as:

Question.1 Whether the product Non Woven Bags manufactured through the intermediate product Non Woven fabric classifiable under Heading No. 5603 are properly classifiable under Heading No. 6305 or under Heading No. 3923?

Ans. The product Non Woven Bags manufactured through the intermediate product Non Woven plastic material manufactured from Fibre grade poly propylene granules merit classification under Heading No. 3923. The rates of GST applicable on said products during different periods, as discussed herein above, are as below:

Question.2. Whether the product Non Woven Bags would be eligible for exemption under Notification No. 01/2017-CT (Rate) and 01/2017-I.T. (Rate) dated 28.06.2017 as amended?

Ans. Negative in view of the above discussion.

GAAAR: We find that the product in question viz. Polypropylene Non-woven bags merits classification under Chapter Heading 3923 of the HSN/Customs Tariff Act, 1975.

Held: We reject the appeal filed by appellant M/s Girivarya Non Woven Fabric Pvt Ltd, and uphold the Advance Ruling No. GUJ/GAAR/R/73/2020 dated 17.09.2020 of the Gujarat Authority for Advance Ruling.

Advance Ruling No. and Date : GUJ/GAAR/R/62/2020 dated 17.09.2020

Questions before the Gujarat Authority for Advance Ruling [‘GAAR’], Goods and Service Tax and Ruling passed as:

Question.1 Whether the product Non Woven Bags manufactured through the intermediate product Non Woven fabric classifiable under Heading No. 5603 are properly classifiable under Heading No. 6305 or under Heading No. 3923?

Ans. The product Non Woven Bags manufactured through the intermediate product Non Woven plastic material manufactured from Fibre grade poly propylene granules merit classification under Heading No. 3923. The rates of GST applicable on said products during different periods, as discussed herein above, are as below:

Question.2. Whether the product Non Woven Bags would be eligible for exemption under Notification No. 01/2017-CT (Rate) and 01/2017-I.T. (Rate) dated 28.06.2017 as amended?

Ans. Negative in view of the above discussion.

GAAAR: We find that the product in question viz. Polypropylene Non-woven bags merits classification under Chapter Heading 3923 of the HSN/Customs Tariff Act, 1975.

Held: We reject the appeal filed by appellant M/s Max Non Woven Pvt Ltd and uphold the Advance Ruling No. GUJ/GAAR/R/62/2020 dated 17.09.2020 of the Gujarat Authority for Advance Ruling.

Advance Ruling No. and Date : GUJ/GAAR/R/63/2020 dated 17.09.2020

Questions before the Gujarat Authority for Advance Ruling [‘GAAR’], Goods and Service Tax and Ruling passed as:

Question.1 Whether the product Non Woven Bags manufactured through the intermediate product Non Woven fabric classifiable under Heading No. 5603 are properly classifiable under Heading No. 6305 or under Heading No. 3923?

Ans. The product Non Woven Bags manufactured through the intermediate product Non Woven plastic material manufactured from Fibre grade poly propylene granules merit classification under Heading No. 3923. The rates of GST applicable on said products during different periods, as discussed herein above, are as below:

Question.2. Whether the product Non Woven Bags would be eligible for exemption under Notification No. 01/2017-CT (Rate) and 01/2017-I.T. (Rate) dated 28.06.2017 as amended?

Ans. Negative in view of the above discussion.

GAAAR: We find that the product in question viz. Polypropylene Non-woven bags merits classification under Chapter Heading 3923 of the HSN/Customs Tariff Act, 1975.

Held: We reject the appeal filed by appellant M/s Karam Green Bags and uphold the Advance Ruling No. GUJ/GAAR/R/63/2020 dated 17.09.2020 of the Gujarat Authority for Advance Ruling.

Advance Ruling No. and Date : GUJ/GAAR/R/84/2020 dated 17.09.2020

Questions before the Gujarat Authority for Advance Ruling [‘GAAR’], Goods and Service Tax and Ruling passed as:

Question.1 Whether the product Non Woven Bags manufactured through the intermediate product Non Woven fabric classifiable under Heading No. 5603 are properly classifiable under Heading No. 6305 or under Heading No. 3923?

Ans. The product Non Woven Bags manufactured through the intermediate product Non Woven plastic material manufactured from Fibre grade poly propylene granules merit classification under Heading No. 3923. The rates of GST applicable on said products during different periods, as discussed herein above, are as below:

Question.2. Whether the product Non Woven Bags would be eligible for exemption under Notification No. 01/2017-CT (Rate) and 01/2017-I.T. (Rate) dated 28.06.2017 as amended?

Ans. Negative in view of the above discussion.

GAAAR: We find that the product in question viz. Polypropylene Non-woven bags merits classification under Chapter Heading 3923 of the HSN/Customs Tariff Act, 1975.

Held: We reject the appeal filed by appellant M/s Rotex Fabric Pvt Ltd and uphold the Advance Ruling No. GUJ/GAAR/R/84/2020 dated 17.09.2020 of the Gujarat Authority for Advance Ruling.

Advance Ruling No. and Date : KAR ADRG 7/2022 dated 08/03/2022

Questions before the Karnataka Authority for Advance Ruling [‘KAAR’], Goods and Service Tax :

a. Whether, the Applicant is acting as a pure agent of the Industry partner to the extent of reimbursement received towards stipend paid to trainees on behalf of Industry partner as part of training agreement and therefore the said reimbursement is not chargeable to GST?

b. Whether, the Applicant is acting as a pure agent of the Industry partner to the extent of reimbursement received against cost of medical and accident insurance obtained for the benefit of trainees by the Applicant and reimbursed by the Industry partner as per the training agreement and therefore the said reimbursement is not chargeable to GST?

Karnataka Authority for Advance Ruling [‘KAAR’] has passed the following ruling:

1. The Applicant does not qualify to be a pure agent of the Industry partner to the extent of reimbursement received towards stipend paid to Trainees on behalf of Industry partner as part of training agreement and therefore the said reimbursement is chargeable to GST.

2. The Applicant does not qualify to be a pure agent of the Industry partner to the extent of reimbursement received against cost of medical and accident insurance obtained for the benefit of Trainees by the Applicant and reimbursed by the Industry partner as per the training agreement and therefore the said reimbursement is chargeable to GST.

KAAAR: Merely because the agreement with the Company states that the stipend amount will be utilized for payment to the trainees and the invoice shows the stipend amount separately, it does not mean that the Appellant is a pure agent and is absolved of his liability. Therefore, while agreeing with the ruling given by the lower Authority that the Appellant does not qualify to be a pure agent of the industry partner to the extent of reimbursement received towards stipend paid to the trainees, we disagree with the reasoning given by the lower Authority to reach this conclusion. We accordingly set aside the reasoning and hold that for the reasons set forth in our discussions in the aforesaid paras, the Appellant fails to qualify as a pure agent with regard to the payment of stipend to the trainees which is reimbursed by the Company.

Held: We uphold the order No. KAR ADRG 07/2022 dated 8th March 2022 passed by the Advance Ruling Authority and the appeal filed by the Appellant M/s. Teamlease Education Foundation, stands dismissed on all accounts.

Advance Ruling No. and Date : KAR ADRG 6/2022 dated 08/03/2022

Questions before the Karnataka Authority for Advance Ruling [‘KAAR’], Goods and Service Tax and Ruling:

1. “Whether ITC can be claimed on common services which are utilized for both taxable as well as exempted supplies?”

Ans : This question is not covered under the issues referred to in Section 97 (2) of the CGST Act 2017, in respect which an applicant can seek advance ruling and hence this authority refrains from giving any ruling in this regard.

2. Whether the method followed by the applicant in connection with claiming of Input Tax Credit is in accordance with the provisions of law?

Ans : The impugned question is not covered under Section 97(2) of the CGST Act 2017, which specifies the issues on which the advance ruling can be sought by the applicant and hence this authority refrains from giving any ruling.

3. Turnover of which financial year to be considered in Rule 42 of the CGST Rules, 2017 while calculating ineligible ITC for the invoices which were accounted in the books of accounts in the FY 2019-20, however ITC was claimed during April to September of FY 2020-21 as per section 16(4) of the CGST Act, 2017 ?

Ans : The impugned question is not covered under Section 97(2) of the CGST Act 2017, and hence this authority refrains from giving any ruling.

KAAAR : We are constrained to observe that the lower Authority has not followed the procedure laid down in Section 98 in this case. In terms of Section 98(2), the lower Authority has to examine after hearing the applicant, whether the application for advance ruling can be admitted or rejected. If the application is rejected, an order must be passed under Section 98(2) citing the reasons for such rejection. The order passed under Section 98(2) rejecting the application is not appealable before the Appellate Authority in terms of Section 100 of the CGST Act. If the application for advance ruling is admitted, then a ruling must be passed in terms of Section 98(4) of the CGST Act. A ruling given under Section 98(4) alone is appealable before the Appellate Authority in terms of Section 100 of the said Act. In this case, we find that the lower Authority has passed an order under Section 98(4) of the Act which means that the application has been admitted. However, having admitted the application in terms of Section 98(2) and recording the same in para 4 of the impugned order, the lower Authority has taken a contrary stand in the findings and failed to pass a ruling on all the questions raised in the application.

This displays a lack of application of mind on the part of the lower Authority and defeats the very purpose for which the Authority has been constituted. We also observe that in-spite of giving a finding that no ruling can be given on the questions asked by the applicant, the lower Authority has gone ahead to discuss the issues on merits and then has finally concluded that no ruling can be given. This is an unacceptable approach and the lower Authority would do well to take note and abide by the judicial principles when dealing with applications for advance ruling.

Held: We modify the order No. KAR ADRG 06/2022 dated 8^th March 2022 passed by the Advance Ruling Authority as follows:

The question “Whether ITC can be claimed on common services which arc utilized for both taxable as well as exempted supplies?” is admissible for advance ruling as it falls within the scope of Section 97(2)(d) of the CGST Act.

We uphold the findings of the Authority for Advance Ruling with respect to questions 2 and 3 of their application and hold that they are not questions on which an advance ruling can be given.

The appeal filed by the Appellant, M/s Bharatiya Reserve Bank Note Mudran Pvt Ltd, is disposed off on the above terms.

Advance Ruling No. and Date : GST-ARA-35/2019-20/B-14 dated 24.05.2021

Questions before the Maharastra Authority for Advance Ruling [‘MHAAR’], Goods and Service Tax and the questions are answered thus -

Question A):-Whether activities performed by ‘DCCI LO’ shall be treated as supply under GST law?

Answer:- Answered in the affirmative.

Question B):- Whether ‘DCCI LO’ is required to obtain GST registration?

Answer:- Answered in the affirmative.

Question C):- Whether ‘DCCI LO’ is liable to pay GST?

Answer:- Answered in the affirmative.

Maharastra AAAR: The activities undertaken by the Appellant at the behest of their Dubai Head Office will clearly constitute supply in terms of Section 7(1)(a) of the CGST Act. 2017 as all the prerequisites of the supply provided under Section 7(1)(a) of the CGST Act, 2017 are being satisfied by the activities undertaken by the Appellant at the behest of their Dubai Head Office.

Held: We, hereby, modify the Ruling passed by the MAAR vide Order No. GST-ARA-35/2019-20/B-14 dated 24.05.2021, by holding that the host of activities performed by the Appellant at the behest of their Dubai Head Office will come under the ambit of “Supply” in terms of Section 7(1 )(a) of the CGST Act, 2017, and are required to take GST registration, and discharge their IGST liability, if any, on the amount received from their Dubai Head Office. Thus, the Appeal filed by the Appellant is not maintainable, and hence. hereby, dismissed.

(i) Whether sending of inputs (Naphtha, DM water, Power, Cooling water, service water and instrument air) by the Appellant to M/s. Praxair India Private Limited and receiving back of industrial gases (Hydrogen gas, Nitrogen gas and HP steam) under the lease agreement will fall under 'job work' in terms of section 2(68) of Central Goods and Service Tax Act, 2017 (CGST Act) and Odisha Goods and Service Tax Act, 2017 (OGST Act)?
(ii) Whether all the payments under the lease agreement will attract GST as applicable to job Work?

Advance Ruling No. and Date : 17/2021 dated, 04.09.2021

Questions before the Telangana Authority for Advance Ruling [‘TSAAR’], Goods and Service Tax: The applicant Medha Servo Drives are manufacturers of electronics equipments for locomotives and coaches for Indian Railways and Metro Railways. They have submitted that they have entered into contract with south central railway for design, supply, installing, testing & commissioning of train collision avoidance system in locomotives. That as per the agreement they have to supply multiple items and provide services including annual maintenance services with the service code 9954.

The applicant is desirous of ascertaining whether their supplies made for the above purchase order amounts to composite supply and the rate of tax on the same.

1. HSN/SAC classification?

2. GST rate applicable?

Telangana Authority for Advance Ruling [‘TSAAR’], has passed the following order:

1. HSN/SAC classification?  - HSN is ‘8530’

2.GST rate applicable? - 9% on CGST & SGST respectively.

TSAAAR: There are two or more individual supplies, supplied in conjunction with each other by a taxable person for a single price, which does not constitute a composite supply. Thereby, the supply satisfies all the pre-requisites to be termed as a “Mixed Supply”.

Held: The Supply provided by M/s Medha Servo Drives Private Limited (Appellant) to M/s Integral Coach Factory, Chennai is a mixed supply. Therefore the order passed by the Advance Ruling Authority is being upheld on this issue.

Advance Ruling No. and Date : GST-ARA-108/2019-20/B-115 dated 22.12.2021

Questions before the Maharastra Authority for Advance Ruling [‘MHAAR’], Goods and Service Tax and the questions are answered thus -

Question No.1 Whether the Turmeric (Turmeric in Whole form - not in powder form) is covered under the definition of 'Agriculture Produce' and exempted from GST? If not, what is the HSN code of Turmeric and the rate of GST on the Turmeric?

Answer:- Dried and Polished Turmeric as in the instant case, is not covered under the definition of 'Agriculture Produce' and is not exempted from GST. The HSN code of the impugned product is 0910 30 20 and the rate of GST is 5% (2.5% each of CGST and SGST)

Question No.2 Whether services rendered by Applicant as a Commission Agent in APMC, Sangli are liable to GST in terms of SI. 54 Heading 9986 of Notification No.12/2017 CT(R) dated 28.06.2017 read with SI. No. 24 of Notification No. 11/2017-C.T. (Rate) dated 28.06.2017?

Answer:- The impugned services rendered by the applicant are taxable under GST and not exempt terms of SI. 54 Heading 9986 of Notification No.12/2017 CT(R) dated 28.06.2017 read with SI. No. 24 of Notification No. 11/2017-C.T. (Rate) dated 28.06.2017

Question No.3 Whether the applicants required to be registered under the CGST Act, 2017 for his activities specified under Annexure-l? If yes, under which section of the GST Act, he is required to be registered?

Answer:- The applicant is required to be registered under the relevant provisions of the CGST Act, 2017 for his impugned activities.

AAAR Maharastra: “agricultural produce” definition contains the expansion term “any” before the term “produce”, which clearly imparts a very wide connotation to the term “agricultural produce” under the GST law. The only constraint for any produce, to qualify for the “agricultural produce”, is that, either no further processing is done or such processing is done as is usually done by a cultivator or producer which does not alter its essential characteristics but makes it marketable for primary market.

Held: We set aside the impugned Advance Ruling Order No.GST-ARA-108/2019-20/B-115 dated 22.12.2021 issued by the Maharashtra Authority for Advance Ruling, and answer the questions raised by the Appellant as under:-

(i) The Turmeric (Turmeric in Whole form - not in powder form) is covered under the definition of ‘Agricultural Produce’. The HSN code of Turmeric is 0910 30 20 and the applicable rate of GST is 5% (CGST @ 2.5%+ SGST@ 2.5%). However, the first supply of Turmeric (Turmeric in Whole form -not in powder form) by farmers, being supply by non-taxable person in Agricultural Produce and Marketing Committee, is not liable to GST by virtue of provisions of section 23 (1) (b) and 2 (107) of the CGST Act, 2017.

(ii) Services rendered by the Appellant as a Commission Agent in APMC, Sangli, are not liable to GST in terms of SI. 54 Heading 9986 of Notification No. 12/2017 CT(R) dated 28.06.2017 read with SI. No. 24 of Notification No. 11/2017-C.T. (Rate) dated 28.06.2017.

(iii) The Appellant is required to be registered in terms of Section 22(1) of the CGST Act, 2017.

Advance Ruling No. and Date : AAR/GST/PB/002 DATED 20.08.2018

Questions before the Punjab Authority for Advance Ruling [‘PBAAR’], Goods and Service Tax and Ruling passed as:

1. Whether free tickets given as “Complimentary Tickets” falls within the definition of supply under CGST Act, 2017 and thus, whether the applicant is required to pay GST on such free tickets?

2. Whether the applicant is eligible to claim Input Tax Credit (for short “ITC”) in respect of complimentary tickets?

PBAAR pronounced the following Advance Ruling under section 98(4) of the CGST Act, 2017 and section 98(4) of the Punjab GST Act, 2017 to the question raised by the applicant:

The activity of the applicant of providing complementary tickets free of charge to some persons would be considered supply of service as per provisions of both Section 7(1)(a) and 7(1)(d) and would therefore be leviable to tax as per provisions of Section 9 of the CGST Act, 2017 and the parallel Section 9 in the Punjab GST Act, 2017. Since all tickets supplied by the applicant including complementary tickets would be taxable, the applicant would clearly be eligible for claim of Input Tax Credit as per the provisions of Section 16 of the CGST Act, 2017.

Punjab AAAR: Where the output supply is either not taxable that is exempt or has been used or deployed for non-business purpose the Act does not provide for availment of ITC in relation to such supply. Since the appellant itself has argued that the activity does fall within the domain of supply it consequently follows that it shall be treated as a non-taxable supply under the Act. The expression “exempt supply” as defined under the Act means supply of any goods or services or both which attracts nil rate of tax or which may be wholly exempt from tax under section 11, or under section 6 of the Integrated Goods and Services Tax Act, and includes non-taxable supply. So, the activity of providing complimentary tickets is an exempt supply, and therefore there shall be no availment of ITC in relation to same in accordance with sub-section (2) of section 17 of the Act.

Held: The question raised by the appellant are decided in the following manner:

a) Activity of providing free complimentary tickets does not fall within the domain of supply as it does not have the element of consideration. However, where such complimentary tickets are being provided by the appellant to a related person or a distinct person the same shall fall within the ambit of supply on account of Schedule I of the Act and the appellant would be liable to pay tax on the same;

b) The appellant would not be eligible to avail input tax credit in relation to such activity. But, where such activity or transaction is treated as supply on account of being provided by the appellant to a related person or a distinct person the appellant would be entitled to avail input tax credit for the same.

1. Whether the services supplied by the applicant can be termed as the supply of space for advertisement in print media?

2. If yes, GST@5% can be charged on the invoices raised to the customers?

3. Any consequential questions that may arise during the hearing.

Advance Ruling No. and Date : Order No. UP ADRG 84/2021 dated 18.10.2021

Questions before the Uttar Pradesh Authority for Advance Ruling [‘UPAAR’], Goods and Service Tax which unanimously ruled as under :

Question (i) In the above transaction, whether the extra packs of Cigarettes would again be leviable to GST?

Answer :- Answered in the negative in view of the discussions made above.

Question (ii):- If yes, the taxable value which can be attributed to such extra packs of Cigarettes for levy of GST?

Answer :- Not answered in view of answer to Question No. 1 above.

Question (iii):- Whether extra packs of Cigarettes would be considered as exempt supplies or free samples and hence attract the provisions of Section 17 (2) of the UPGST Act, 2017 read with Rule 42 of the UPGST Rules, 2017 or clause (h) of Section 17 (5) of the UPGST Act, 2017?

Answer :- The extra packs of cigarettes will not be considered as exempt supplies or free samples and hence the provisions of 17(2) of the UPGST Act, 2017 read with Rule 42 of the UPGST Rules, 2017 or clause (h) of Section 17 (5) of the UPGST Act, 2017 will not be applicable.

UPAAAR: We are of the opinion that the application for advance ruling can only be rejected if the issue raised in the application has already been pending or decided in any proceedings in the case of an applicant under any of the provisions of the Act. However; here we observe that though the Appellant has informed that there are several alerts issued against the said firm by department and that they have indulged in claiming refund of accumulated ITC obtained through fraudulent means and many search operations have been conducted against the party, but, nowhere it has been objected by the Appellant that the questions raised in the advance ruling application of the respondent is already pending or decided in any proceedings in the case of an applicant under any of the provisions of the Act. Accordingly, we are of the opinion that the Advance Ruling Authority has righty admitted and decided the application for advance ruling filed by the respondent.

Held: we hold that the ORDER No. UP/ADRG 84/2021 dated 18.10.2021 issued by the Authority for Advance Ruling, Uttar Pradesh is proper and needs no interference.

Advance Ruling No. and Date : AAR NO. 08/DAAR/2018, Dated 28.06.2019

Questions before the Delhi Authority for Advance Ruling [‘DAAR’], Goods and Service Tax which were ruled as: 

Question No. 1:  Whether Goods and Services Tax Shall be leviable /chargeable on the transaction / agreement as per provisions of Central Goods and Service Tax Act, 2017.

Answer: The amount received by the applicant from AICL is not in the nature of grant-in-aid and is covered in the definition of "consideration" for the supply of goods or services under Section 2(31) of the CGST Act, 2017 in respect of the MoU dated 16.01.2017. Hence, they are liable to pay GST under Section 9(1) of the CGST Act, 2017.

Question No. 2: If the answer to above question is Yes, Whether the transaction can be exempted in whole or in parts, referring to specific provisions enumerated in exemption notification.

Answer: The said supply of goods or services are not exempted from the payment of GST under S. No. 1 or 5. No. 76 the Notification No. 12/2017 - Central Tax (Rate) dated 28.06.2017, and parallel notification under SGST and IGST. Hence, the applicant is liable to pay GST on the supply of goods or services under the MoU dated 16.01.2017 entered by them with AICL.

DAAR: The Hon'ble Supreme Court in the light of the advancement of communication technology(fax, email, video conferencing, etc.) has emphasized the need to file appeal within the stipulated period and has held that the vintage case laws would not be applicable to condone the delay. The Hon'ble Supreme Court in the case of Office of the Chief Post Master General & Ors Vs. Living Media India Limited (2012) 3 SCC 563, Order dated 8.1.2021 in SLP(Criminal) Diary No 24676/2020, Order dated 8.1.2021 in SLP(Criminal) Diary No 24723/2020, Order dated 1.2.2021 in SLP(Criminal) Diary No 24862/2020, Order dated 22.2.2021 in SLP(Criminal) Diary No 24211/2020, Order dated 22.02.2021. in SLP(Criminal) Diary No 14091/2020, etc. refused to condone the delay.

Be that as it may, the Appellate Authority is not a “Court” and hence the power to condone beyond the prescribed period does not arise.

Furthermore, the provisions of Limitation Act, 1963 does not apply to the appeal proceedings before the appellate authority.

Since the appeal cannot be allowed to proceed on account of time limitation, the question of discussing the merits of the issue in appeal does not arise.

In the conspectus of the facts and circumstance of the case, we are of the considered view that we are not empowered to condone the delay in filing this appeal. In view of the above we pass the following order.

Held: We dismiss the appeal filed by the Appellant i.e. M/s Indian Institute of Corporate Affairs, B-Wing, 2nd Floor, Paryavaran Bhawan, CGO Complex, Lodhi Road New Delhi on grounds of time limitation.

Advance Ruling No. and Date : AAR NO. 01/DAAR/2018, Dated 27.03.2018

Questions before the Delhi Authority for Advance Ruling [‘DAAR’], Goods and Service Tax : 

Whether the supply of sunglasses from the retail outlet of the applicant at Terminal 3, IGI Airport (International Departure), New Delhi, to outbound international passengers against the international boarding pass is liable to SGST under the DGST Act, 2017 and CGST under the CGST Act, 2017 or is it a zero rated “export” supply within the meaning of Section 2(23) r/w Section 2(5) of the IGST Act, 2017?

Delhi Authority for Advance Ruling [‘DAAR’], Goods and Service Tax ruled as:

It is held that the supply of goods to the International passengers going abroad by the applicant from their retail outlet situated in the Security Hold Area of the Terminal-3 of IGI Airport, New Delhi may be taking place beyond Customs Frontiers of India as defined under Section 2(4) of the IGST Act, 2017. However, the said outlet is not outside India, as claimed by the applicant but the same is within the territory of India as defined under Section 2(56) of the CGST Act, 2017 and Section 2(27) of the Customs Act, 1962 and hence the applicant is not taking goods out of India and hence their supply cannot be called “export” under Section 2(5) of the IGST Act, 2017 or “zero rated supply” under Section 2(23) and Section 16(1) of the IGST Act, 2017. Accordingly, the applicant is required to pay GST at the applicable rates.

DAAAR: We hold that transactions i.e. supply of goods to outbound international travellers fall within the definition of “taxable territory” and when read in conjunction with section 7 of the CGST Act, 2017 forms “supply” and attracts the applicable GST on the date of supply of the goods. We hold it accordingly.

In the light of the findings of ours read with the judgment Al Cuisines Private Limited(supra) relied upon by us, we are of the considered view that the Ruling challenged before us by way of an appeal is legally tenable in the eyes of law and no infirmity has crept in the findings and merits being upheld and we do so.

Held: The appeal, being devoid of merits, is dismissed.

Advance Ruling No. and Date : AAR NO. 01/DAAR/2018, Dated 27.03.2018

Questions before the Delhi Authority for Advance Ruling [‘DAAR’], Goods and Service Tax : 

A. What is the applicable rate of tax on the activity of applicant of supplying food/beverages, in each of the cases mentioned above in light of the amendment made in Notification No. 11/2017-Central Tax (Rate) dated 28.06.2017 vide Notification No. 46/2017 - Central Tax (Rate) dated 14.11.2017; amendment made in Notification No. 8/2017- Integrated Tax (Rate) dated 28.06.2017 vide Notification No. 48/2017 Integrated Tax (Rate) dated 14.11.17; amendment made in Notification No. 11/2017 - State Tax (Rate) dated 30.06.2017 vide Notification No. 46/2017 - State Tax (Rate) dated 28.11.17 in the NCT of Delhi?

B. What is the applicable rate of tax on supply of newspaper as elaborated in the cases mentioned above?

The Appellate Authority for Advance Ruling passed the following order:

23. In the case of supply of food and beverages (cooked/MRP/packed), at defined menu and tariff, by the applicant to IRCTC/passengers on behalf of IRCTC, on board the Rajdhani/Duronto Express trains, the service charges are covered under Service Code (Tariff) 996335 in Group 99633 of heading 9963 of Annexure/Scheme of Classification of Services as “catering services in train”. The same are covered under S. No. 7 (ix) of Notification No. 11/2017 - Central Tax (Rate) dated 28.06.2017 as amended vide Notification No. 46/2017 - Central Tax (Rate) dated 14.11.17 and parallel Notifications of IGST and Delhi GST. A train is a mode of transport and hence cannot be called as a restaurant, eating joint, mess or canteen etc. and hence catering services provided on-board a train are not covered under S. No. 7 (i) of the said Notifications as claimed by the applicant. The supply of goods i.e. food, bottled water etc. shall be charged to GST on value of goods (excluding the service charges) at applicable rates as pure supply of goods, as the same have no element of service. The supply of newspaper is separately invoiced and hence it shall be at 'Nil” GST under S. No. 120 of Notification No. 2/2017- Central Tax (Rate) dated 28.06.2017 and parallel Notifications of IGST and Delhi GST.

24. In the case of supply of food and beverages (cooked/MRP/packed) on board the Mail/express trains by the applicant directly to the passengers as per the menu/rates fixed by IRCTC/Railways does not have any element of service and hence the same shall be considered as pure supply of goods and GST shall be charged on individual items at their respective applicable rates. The benefit of S. No. 7 of Notification No. 11/2017-Central Tax (Rate) dated 28.06.2017 vide Notification No. 46/2017 - Central Tax (Rate) dated 14.11.2017; amendment made in Notification No. 8/2017- Integrated Tax (Rate) dated 28.06.2017 vide Notification No. 48/2017 -Central Tax (Rate) dated 14.11.17; amendment made in Notification No. 11/2017 - State Tax (Rate) dated 30.06.2017 vide Notification No. 46/2017 - State Tax (Rate) dated 28.11.17 are not admissible to the applicant.

25. The supply of food and beverages (cooked/MRP/packed) by the applicant to the passengers/general public at the rates fixed by the Indian Railways/IRCTC at food stalls at Railway platforms does not have any element of service and hence the same shall be considered as pure supply of goods and GST shall be charged on individual items at their respective applicable rates. The mere heating/cooling of beverages or similar other services are incidental and minimal required to supply of goods and such supply cannot be called composite supply. The benefit of S. No. 7 of Notification No. 11/2017-Central Tax (Rate) dated 28.06.2017 vide Notification No. 46/2017 - Central Tax (Rate) dated 14.11.2017; amendment made in Notification No. 8/2017- Integrated Tax (Rate) dated 28.06.2017 vide Notification No. 48/2017-Central Tax (Rate) dated 14.11.17; amendment made in Notification No. 11/2017 -State Tax (Rate) dated 30.06.2017 vide Notification No. 46/2017 - State Tax (Rate) dated 28.11.17 are not admissible to the applicant.

26. For the supply of food (Cooked/MRP/Packed) in food plaza, the relevant document pertaining to details of items supplied, pricing detains, extent of services provided are not submitted. Hence, no ruling can be given in respect of supply from Food Plaza on the Railway Platform.

DAAAR: We specifically decline to give any ruling on the retrospective or prospective effect of this Order as the same was not before the Authority on Advance Ruling.

Held: 1. The GST rate on supply of food and/or drinks by the appellant whether in trains or at platforms (static units), will be 5% without ITC.

2. In respect of supply of newspapers, the same are exempted under relevant notifications of CGST, 2017 SGST, 2017 and IGST Act, 2017.

Advance Ruling No. and Date : GUJ/GAAR/R/106/2020 dated 30.12.2020

Questions before the Gujarat Authority for Advance Ruling [‘GAAR’], Goods and Service Tax:

(i) Whether the supply of medicines, surgical items, implants, consumables and other allied services & items provided by the hospital through their hospital in-house pharmacy, as well as food, room rent, other services to the in-patients, is part of composite supply of health care treatment; and hence not taxable under CGST / SGST ?

(ii) Whether the supply of Occupational Health Check-up (OHC) service by the hospital i.e. nursing staff, Doctors, Paramedical staff on hospital’s payroll, working in different corporate for providing health check-up service, ambulance facility, and allied medical services to their employees and also the camps conducted for health check-up outside the hospitals, to be treated as Health Care service and hence not taxable under CGST / SGST?

The GAAR, vide Advance Ruling No. GUJ/GAAR/R/106/2020 dated 30.12.2020 has ruled as follows –

(i) The supply of medicines, surgical items, implants, consumables and other allied items provided by the hospital through their hospital in-house pharmacy used in the course of providing health care services as well as supply of food and room on rent to in-patients admitted to the hospital for diagnosis or medical treatment or procedures is a composite supply of In-Patient Healthcare Service. Supply of in-patient health care services by the applicant hospital as defined in Para 2(zg) of the Notification No. 12/2017-Central Tax (Rate) dated 28.06.2017, as amended, is exempted from CGST as per Sl. No. 74 of the above Notification.

(ii) The applicant will be liable to pay GST @ 18% (CGST @9% + SGST 9%) on the payment received directly from the business entity for health services provided to employees of the business entities in relation to Occupational Health Check-up (OHC) or preventive care along with ambulance facility and allied medical services under “Human health and social care services” in terms of S. No. 31 of the Table of the Notification No. 11/2017-Central Tax (Rate) dated 28.06.2017.

AAAR Gujarat: The definition of Health Care Service is similar in GST regime as compared to Finance Act, 1994. We find that the GAAR failed to appreciate the same.

Held: We modify the Advance Ruling No. GUJ/GAAR/R/106/2020 dated 30.12.2020 of the Gujarat Authority for Advance Ruling in the case of M/s. Baroda Medicare Pvt Ltd, Sunshine Global Hospital with respect to Question No. 2 and hold that supply of Occupation Health Checkup Service by the hospital i.e. nursing staff, Doctors, Paramedical staff on hospital’s payroll working in different corporate for providing health check-up services, ambulance facility and allied medical services to their employees and also the camps conducted for health check-up outside the hospitals to be treated as Health Care Service and exempted under GST in terms of Entry at Sr.No.74 of Notification No.12/2017-Central Tax (Rate) dated 28.06.2017 and Notification No. 12/2017-State Tax (Rate) dated 30.06.2017, as amended. 

Advance Ruling No. and Date : GUJ/GAAR/R/105/2020 dated 05.11.2020

Questions before the Gujarat Authority for Advance Ruling [‘GAAR’], Goods and Service Tax:

Whether the applicant is eligible to claim exemption benefit under Sr.No.5 and Sr. No. 66(a) & (aa) of Notification No.12/2017-Central Tax(Rate) dated 28.06.2017?

The GAAR, vide Advance Ruling No. GUJ/GAAR/R/105/2020 dated 05.11.2020, ruled as under:

(i) The applicant is eligible to claim exemption benefit under Sr.No.5 of Notification No.12/2017-Central Tax(Rate) dated 28.06.2017(as 4 amended from time to time), in respect of services supplied for the exams mentioned at Sr.No.9 to 15 of the list of exams (mentioned at para-5 above). However, no such exemption is available in respect of services supplied for the exams mentioned at Sr.No.1 to 8 and 16 to 23 of the list (mentioned at para-5 above) for the reasons discussed hereinabove.

(ii) The applicant is not eligible to claim exemption benefit under Sr.No.66(a) & (aa) of Notification No.12/2017-Central Tax(Rate) dated 28.06.2017 (as amended from time to time), for the reasons discussed hereinabove.

AAAR Gujarat:  Appellant failed to submit the details of specific curriculum for the Diploma in Home Science and GCC Type Steno. The appellant has not submitted any documents revealing the fact that qualification of these courses are recognised by any law for the time being in force. Primary and secondary schools education or education at higher secondary schools or colleges are always recognised by the law. These education programme i.e. Diploma in Home Science and GCC Type Steno, not being recognised by any law, cannot, by any stretch of imagination be considered as functions entrusted to a Panchayat under article 243G of the Constitution. 

Held: we modify the Advance Ruling No. GUJ/GAAR/R/105/2020 dated 05.11.2020 of the Gujarat Authority for Advance Ruling in the case of M/s. State Examination Board, and hold that – (i) The appellant is eligible to claim exemption benefit under Sl. No. 66 (aa) of Notification No.12/2017-Central Tax (Rate) dated 28.06.2017 (as amended from time to time), in respect of services supplied for the exams mentioned at Sr. No. 1 to 12 of the list of exams (mentioned at para-26 above). (ii) The appellant is not eligible to claim exemption benefit under Sl.No.5 of Notification No.12/2017-Central Tax(Rate) dated 28.06.2017(as amended from time to time), in respect of services supplied for the exams mentioned at Sr.No. 13 and 14 of the list of exams (mentioned at para-26 above) for the reasons discussed hereinabove. In addition, the appellant is also not eligible to claim exemption benefit either under Sl. No. 5 or Sl. No. 66 (a) & (aa) of Notification No.12/2017- Central Tax (Rate) dated 28.06.2017 (as amended from time to time), in respect of services supplied for the exams mentioned at Sr. No. 15 of the list of exams (mentioned at para-26 above) for the reasons discussed hereinabove.

Advance Ruling No. and Date : GUJ/GAAR/R/46/2020 dated 30.07.2020

Questions before the Gujarat Authority for Advance Ruling [‘GAAR’], Goods and Service Tax:

(1) Whether in terms of Section 17 of the CGST Act, 2017 read with GGST Act, 2017, the LNG jetties proposed to be built by the applicant can be said to be covered within expression ‘plant and machinery’ as foundation to equipment, apparatus, machinery to be installed on it?

(2) Whether as per Section 16 read with Section 17 of the said Acts, the applicant can accordingly avail ‘input tax credit’ of GST paid on inputs, input services as well as capital goods procured for the purpose of building the LNG jetties?

The Gujarat Advance Ruling Authority has answered the questions raised by applicant, as under:

Answer to Question 1: The LNG jetties proposed to be built by the applicant are not covered within the expression ‘plant and machinery’ as foundation to equipment, apparatus, machinery to be installed on it in terms of Section 17 of the CGST Act, 2017 read with GGST Act, 2017.

Answer to Question 2: The applicant cannot avail ‘input tax credit’ of GST paid on inputs, input services as well as capital goods procured for the purpose of building the LNG jetties in terms of Section 16 read with Section 17 of the CGST Act, 2017 read with GGST Act, 2017.

AAAR Gujarat: We find that the LNG Jetties being built by the appellant are not in the nature of ‘plant and machinery’ being foundation for equipment, apparatus, machinery for re-gasification to be installed thereon. Therefore input tax credit on inputs, input services and capital goods for the purpose of building these LNG Jetties are not admissible.

Held: We reject the appeal filed by M/s. Swan LNG Pvt. Ltd., and confirm the Advance Ruling No. GUJ/GAAR/R/46/2020 dated 30.07.2020 by holding that (1) LNG Jetties being built by the appellant are not covered within the expression ‘plant and machinery’ as foundation to equipment, apparatus, machinery to be installed on it in terms of Section 17 of the CGST Act, 2017 and (2) the appellant cannot avail input tax credit of GST paid on inputs, input services and capital goods procured for the purpose of building the LNG Jetties in terms of Section 16 of the CGST Act, 2017.

Advance Ruling No. and Date : GUJ/GAAR/R/88/2020 dated 17.09.2020

Questions before the Gujarat Authority for Advance Ruling [‘GAAR’], Goods and Service Tax:

“Whether various activities carried out by the appellant to the plot holders in terms of provisions of GIDC Act, 1962 and charges collected for the same as may be notified from time to time amounts to supply under Section 7 of the CGST Act, 2017?”

The GAAR ruled as follows:-

The various activities carried out by the Applicant M/s Gujarat Industrial Development Corporation, Gandhinagar to the plot holders in terms of of provisions of GIDC Act, 1962 and charges collected for the same as may be notified from time to time amounts to supply under Section 7 of Central Goods and Service Tax Act, 2017 (CGST Act) and is liable to GST for the reasons discussed hereinabove.

AAAR Gujarat: We find that the appellant does not fall under the category of ‘State Government’ and also their functions are not covered under Twelfth Schedule of Article 243W of the Constitution. They are therefore not eligible for exemption benefit under Notification No.14/2017-Central Tax (Rate) dated 28.06.2017.

Held: We reject the appeal filed by the appellant M/s. Gujarat Industrial Development Corporation. We uphold the Advance Ruling No. GUJ/GAAR/R/88/2020 dated 17.09.2020 of the Gujarat Authority for Advance Ruling, with modification in their findings to the effect that the appellant does not fall under the category of ‘State Government’ but is covered under the category ‘Government Entity’, in the case of M/s. Gujarat Industrial Development Corporation.