GST
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...
12% GST Payable On Accommodation Building Located Outside The Boundary Of The Religious Place: AAR
The Ahmedabad Bench of the Authority of Advance Ruling (AAR) has ruled that GST is payable on accommodation buildings located outside the boundary of the religious place.The bench of Amit Kumar Mishra and Milind Kavatkar has observed that Nandini Ashram Trust is liable for GST registration in terms of Section 22 of the CGST Act, 2017, subject, however, to the threshold limit of his aggregate turnover exceeding Rs. 20 lakhs.The applicant, Nandini Ashram Trust, is engaged in providing a wide range...
Inter-State Supply Of Ambulances To Tripura Government Attracts 28% IGST: AAR
The Telangana Authority of Advance Ruling (AAR) has held that the supply of ambulances to the Tripura government attracts 28% IGST as it is an interstate supply.The bench of Kasi Visweswara Rao and Sahil Inamdar ruled that the liability to pay tax on goods shall arise at the time of supply, as determined in accordance with the provisions of Section 12 of the CGST/TGST Act, 2017, and that of services as per Section 13 of the CGST/TGST Act, 2017.The applicant has a work order for the supply of...
ITC Not Allowable On Construction Of Shed Using Prefabricated Technology: Telangana AAR
The Telangana Authority of Advance Ruling (AAR) has held that input tax credit (ITC) is allowed for the construction of sheds using prefabricated technology.Sahil Inamdar has observed that the Pre-Fabricated Sheds (PFS) being constructed are, therefore, immovable property, and the input tax credit is not admissible on the inward supplies, which may include works contract services, for its construction, as the credit of such tax comes under the category of blocked credits.S.V. Kasi Visweswara Rao...
Tax Cases Weekly Round-Up: 23 April To 29 April, 2023
Bombay High Court Goa Value Added Tax (12th Amendment) Act, 2020 Defies The Doctrine Of Separation Of Powers: Bombay High Court Case Title: Rohan Lobo Versus State Of Goa The Bombay High Court has held that the Goa Value Added Tax (12th Amendment) Act, 2020, is an impermissible judicial override defying the doctrine of separation of powers. Material Triggering Reassessment Must Be Furnished To The Assessee: Bombay High Court Case Title: Anurag Gupta Versus ITO The...
Transfer Of Going Concern By AAI To Adani Jaipur Airport Does Not Attract GST: Rajasthan AAR
The Rajasthan Authority of Advance Ruling (AAR) has ruled that GST is not applicable on transfers of going concern by the Airport Authority of India (AAI) to Adani Jaipur Airport.The bench of Umesh Kumar Garg and Mahesh Kumar Gowla has observed that the invoice raised by the applicant for reimbursement of the salary/staff cost on M/s. Adani Jaipur International Airport Limited is a consideration for a supply, which falls under the ambit of manpower service. 18% GST is applicable on salary or...