GST To Remain @5% On Popcorn Sold In Theatres, Clarifies Govt

The Finance Ministry in its 55th Meeting of the GST Council, clarified that ready to eat popcorn which is mixed with salt and spices are classifiable under HS 2106 90 99 and attracts 5% GST if supplied as other than pre-packaged and labelled and 12% GST if supplied as pre-packaged and labelled.However, when popcorn is mixed with sugar thereby changing its character to sugar confectionary (e.g. caramel popcorn), it would be classifiable under HS 1704 90 90 and attract 18% GST. By this...

GST Department's Effective Adjudication Of Matter Cannot Be Scuttled By Seeking Writ Remedy: Calcutta High Court

While reiterating that it shall not interfere in matters requiring fact-finding and adjudication, which fall squarely within the statutory domain, the Calcutta High Court advised the manufacturer/ supplier to exhaust the statutory remedies provided under the CGST Act, 2017 including submitting a detailed response to the SCN.“The statutory framework under the CGST Act provides adequate mechanisms for addressing the petitioner's concerns, including responding to the SCN, participating in...

Rapido Liable To Pay GST On Services Provided By Independent Four-Wheeler Cab Service Provider: Karnataka AAR

The Karnataka Authority of Advance Ruling has held that the Rapido is liable to pay GST on services provided by independent four-wheeler taxi service providers.The bench of Dr. M.P. Ravi Prasad and Kiran Reddy T has observed that Rapido satisfies the definition of an “e-commerce operator” and the nature of supply as conceptualized in Section 9(5) of CGST Act 2017 read with notification No. 17/2017 dated 28.06.2017.The applicant stated that it is a registered private limited company, also...

ITAT & AAR Weekly Round-Up: 21 To 27 July 2024

ITATITAT Allows Depreciation Claim On Non Compete Fee, Deletes PenaltyCase Title: Metro Tyres Limited Versus ACITThe Delhi Bench of Income Tax Appellate Tribunal (ITAT) has allowed the claim of depreciation on non-competing fees.Long Term Capital Gain On Sale Of Shares By Mauritius Company Is Not Liable To Be Taxed In India: ITATCase Title: M/s. Superb Mind Holdings Ltd. Versus Assistant Commissioner of Income TaxThe Delhi Bench of Income Tax Appellate Tribunal (ITAT) has held that long-term...

GST Payable On Advance Received Against Supply Portion Of Work Contract: Gujarat AAR

The Gujarat Authority of Advance Ruling (AAR) has held that the GST is payable in advance received against the supply portion in respect of the work contract.The bench of Amit Kumar Mishra and Milind Kavatkar has observed that the turnkey contract entered into by the applicant has been held to be a work contract.The applicant is in the engineering, procurement, and construction (EPC) contract business with various distribution companies (DISCOMS).The applicant stated that they have a turnkey...

Deduction Of Nominal Amount From Employee's Salary For Availing Food Facility Is Not 'Supply': Gujarat AAR

The Gujarat Authority of Advance Ruling (AAR) has ruled that deduction of nominal amount from employee's salary for availing food facility is not 'supply' under the provisions of Section 7 of the CGST Act, 2017.The bench of Amit Kumar Mishra and Milind Kavatkar has observed that the exceptions are Schedule-I, which includes activities made or agreed to be made without consideration, and Schedule-III, which includes activities that shall not be treated as a supply of goods or services. The...

ITC Available On Capital Goods Used For Transmission Of Electricity From Power Station Of DISCOM To Factory Premises: Gujarat AAR

The Gujarat Authority of Advance Ruling (AAR) has ruled that the Input Tax Credit (ITC) available on capital goods used for transmission of electricity from power stations of Distribution Companies (DISCOM) to factory premises.The bench of Amit Kumar Mishra and Milind Kavatkar has observed that there is no provision under the CGST Act, 2017 which bars availment of ITC by the applicant if subsequently the capitalised goods are handed over to Gujarat Energy 'Transmission Corporation Ltd....

Rotary Car Parking System Is Civil Structure, GST ITC Not Admissible: AAR

The Tamil Nadu Authority of Advance Ruling (AAR) has ruled that input tax credit (ITC) is not admissible on rotary car parking systems.The bench of D. Jayapriya and A. Valli observed that the Rotary car parking system is an infrastructure with the aim of catering to the need for greater urban density and compactness in cities and to make better use of scarce land. The Rotary car parking system provides additional space to park the vehicles depending upon the number of storeys built or preferred....

Infant Food Products Containing Milk And Other Ingredients Subject To 18% GST: AAR

The Rajasthan Authority of Advance Ruling (AAR) has ruled that infant food products containing milk and other ingredients are subjected to 18% GST.The bench of Mahipal Singh and Mahesh Kumar Gowla has observed that, as per Chapter 19, milk products are one of the constituents of the final product, whereas Chapter 4 deals with milk products only. The principle or dominant item of the applicant is the manufacturing of infant milk formula containing cereals, protein supplements, etc., which is a...

18% GST Applicable On ZlD Treated Water: AAR

The Gujarat Authority of Advance Ruling (AAR) has ruled that 18% GST is applicable on Zero Liquid Discharge (ZLD) treated water.The bench of Amit Kumar Mishra and Milind Kavatkar has observed that the water obtained from the Common Effluent Treatment Plant (CETP), which has further undergone the processes of ultrafiltration and reverse osmosis in the ZLD plant, has a small amount of dissolved minerals and chemicals and is virtually free from all types of toxic materials. This treated water is...

5% GST Payable On Mix Mukhwas And Roasted Til & Ajwain: AAR

The Gujarat Authority of Advance Ruling (AAR) has ruled that 5% GST is payable on Mix Mukhwas, Roasted Til, and Ajwain.The bench of Amit Kumar Mishra and Milind Kavatkar has observed that both the products, Mix Mukhwas and Roasted Til and Ajwain, mainly comprise sesame seeds, with 60% of the first product and 97% of the second product. The process undertaken on the said seeds of cleaning, mixed with a salt and citric acid solution for slating purposes, roasting, and adding turmeric powder does...

Marketing/Recruitment/Referral Consultant To Foreign Universities On Principal To Principal Basis Is Not 'Intermediary Service': AAR

The Telangana Bench of the Authority of Advance Ruling (AAR) has held that marketing, recruiting, or referring consultants to foreign universities on a principal-to-principal basis is not 'intermediary service'.The bench of S.V. Kasi Visweswara Rao and Sahil Inamdar observed that the supplier is located in India while the recipient of services, i.e., foreign colleges and universities, is located outside India. Since the activity of the applicant supplier is an independent service of 'marketing,...