Fair Price Shops Supplying Essential Commodities To Ration Card Holders Are Not Liable To Charge GST To The State Government: West Bengal AAR

The West Bengal Authority of Advance Ruling (AAR) has ruled that Fair Price Shops (FPS) supplying essential commodities, specifically Super Kerosene Oil (SKO), under the Public Distribution System (PDS) to ration card holders are not liable to charge GST to the State Government.The bench of Sarthak Saxena and Joyjit Banik has observed that Entry 11A of Notification No. 12/2017-Central Tax (Rate), which offers a nil tax rate for FPS supplying services to the state government against commission or...

Full Credit Available On GST Charge In The Tax Invoice Issued By The Supplier: AAR

The Andhra Pradesh Authority of Advance Ruling (AAR) has ruled that full credit of the GST charge is included in the tax invoice issued by the supplier even if later commercial or financial credit notes are issued.The bench of K. Ravi Sankar and R. V. Pradhamesh Bhanu has observed that there is no requirement for the applicant to reverse the ITC proportionately to the extent of the financial or commercial credit note issued by the supplier.The applicant is in the business of supplying various...

‘Duty Credit Scrips’ To Be Excluded From The Value Of Exempt Supply To Compute ITC Reversal: AAR

The Telangana Authority of Advance Ruling (AAR) has ruled that "duty credit scrips" shall be excluded from the value of exempt supply.The bench of S.V. Kasi Visweswara Rao and Sahil Inamdar has observed that the relevancy of the turnover pertaining to the sale of "duty credit scrips" does not arise in the computation of the refund of an input tax credit, availed in respect of inputs received.The applicant deals in the export of cotton lint-fully pressed cotton bales. They have submitted that...

18% GST Payable On Target-Based Incentive Received By Intel Reseller: AAAR

The Maharashtra Appellate Authority of Advance Ruling (AAAR), while upholding the Order of the AAR, ruled that 18% GST is payable on target-based incentives received by Intel resellers.The bench of D.K. Srinivas and Rajeev Kumar Mital has observed that The incentive received by the reseller from a US company is not a "trade discount."The appellant is a reseller of Intel Products. The Appellant is having their main place of business in Maharashtra. The Appellant purchases the products from...

Movement Of Goods Between Branches In Different States Taxable Under 'Lease Rental Service': AAAR

The Maharashtra Appellate Authority of Advance Ruling (AAAR) has ruled that the movement of goods between branches in different states is taxable under 'lease rental service'.The bench of D.K. Srinivas and Rajeev Kumar Mital has observed that the movement of equipment from CIPL Karnataka to CIPL Tamil Nadu on the instruction of CIPL Maharashtra cannot be said to be a mere movement of goods not amounting to a supply in terms of Section 7 of the CGST Act, 2017 as the transaction would fall under...

GST Is Payable On Substance Use Disorder As It Is Out Of Ambit Of Health Care Services: Rajasthan AAR

The Rajasthan Authority of Advance Ruling (AAR) has held that Goods and Service Tax (GST) is payable on substance use disorder as it is outside the ambit of health care services.The Bench of Umesh Kumar Garg and Mahesh Kumar Gowia has observed that services for the prevention and treatment of substance misuse and substance use disorders have traditionally been delivered separately from other mental health and general health care services. Because substance misuse has traditionally been seen as a...

GST Payable On Monthly Rental, Night Charges, Fuel On Mileage Basis In Availing Motor Vehicle Rental Services: AAR

The Uttarakhand Authority of Advance Ruling (AAR) has held that GST is payable on monthly rental, night charges, and fuel on a mileage basis when availing motor vehicle rental services.The Bench of Anurag Mishra and Rameshwar Meena has observed that without fuel, the motor vehicle does not operate (run), and without running, i.e., moving from one place to another, the act of motor vehicle hire services does not happen. Motor vehicle hire services have the integral component of running or...

Uttar Pradesh Jal Nigam Is Not A Local Authority: AAAR Denies Concessional Rate Benefit On Works-Contract Services

The Uttar Pradesh Appellate Authority of Advance Ruling (AAAR) has held that Uttar Pradesh Jal Nigam (UPJN) is not a local authority and 18% GST is payable on the works-contract services.The Bench of Uma Shankar and Ministhy S, while upholding the ruling of the Authority of Advance Ruling (AAR) observed that by way of Notification No. 15/2021-Central Tax (Rate) dated November 18, 2021, the lower rate of tax of 12% was restricted to works contracts supplied to the Central Government, State...

No GST On The Difference Between Purchasing, Selling Price Of Second Hand Gold Jewellery: AAR

The Karnataka Authority of Advance Ruling (AAR) has ruled that purchasing second-hand gold in the form of jewellery and parts of jewellery from unregistered individuals and selling it to registered or unregistered dealers after melting it in the form of lumps of gold cannot be subject to GST on the margin difference between the sale price and purchase price as stipulated in Rule 32(5) of the CGST Rules, 2017.The bench of M.P. Ravi Prasad and Kiran Reddy T. has held that the HSN code for old gold...

Tax Cases Weekly Round-Up: 07 May to 13 May, 2023

Supreme Court Prickly Heat Powder Is Not A ‘Medicine’ For The Purpose Of Sales Tax In Kerala & Tamil Nadu: Supreme Court Case Title: Heinz India Limited v The State of Kerala Citation: 2023 LiveLaw (SC) 411 The Supreme Court Bench has held that prickly heat powders fall under the category of ‘medicated talcum powder’ and not ‘medicine’ for the purpose of sales tax under Kerala General Sales Tax Act, 1963 (“KGST Act”). Whereas, under the Tamil Nadu General Sales Tax...

GST Exemption On Architectural Consultancy Service Provided To Surat Municipal Corporation: AAR

The Gujarat Authority of Advance Ruling (AAR) has held that the "Architectural Consultancy Service" provided to Surat Municipal Corporation (SMC) for the construction of SMIMER Hospital and College Campus is exempt from GST.The bench of Amit Kumar Mishra and Milind Kavatkar has observed that the pure services (excluding works contract services or other composite supplies involving the supply of any goods) provided to the local authority by way of any activity in relation to a function entrusted...

18% GST Payable On The Commission If Commission Is Deducted On The Bonus Amount As An Intermediary: AAR

The Telangana Authority of Advance Ruling (AAR) has ruled that 18% of the commission will be deducted from the bonus amount as an intermediary.The bench of Kasi Visweswara Rao and Sahil Inamdar has observed that 5% GST is payable on the rest of the amount, which is arrived at after excluding the commission from the entire bonus, as it would be included as the value of supply of canteen services in accordance with Section 15(2) of the CGST Act, 2017.The applicant is providing canteen services to...