28% GST Payable On Supply PVC Floor Mats For Cars: AAR

The Gujarat Authority for Advance Ruling (AAR) has ruled that 28% GST is payable on the supply of PVC floor mats for cars.The two-member bench of Amit Kumar Mishra and Milind Kavatkar has observed that the floor mats used for four-wheel motor vehicles (cars) supplied by the applicant are principally for use in motor vehicles.The applicant is in the business of manufacturing and supplying floor mats for four-wheel motor vehicles (cars). The floor mats are essentially made of PVC material.The...

5% GST Payable On RCM Basis On Purchase Of Tobacco Leaves/Bhukko From The Agriculturist: Gujarat AAR

The Gujarat Authority for Advance Ruling (AAR) has ruled that 5% GST on reverse charge mechanisms (RCM) shall be applicable on the purchase of tobacco leaves/bhukko from the agriculturist.The two-member bench of Amit Kumar Mishra and Milind Kavatkar has observed that, in terms of Notification No. 4/2017-Central Tax (Rate), in the case of intrastate supply of tobacco leaves, falling under 2401, by an agriculturist to a registered person, GST is to be paid under RCM by the recipient.The AAR noted...

GST Under Reverse Charge Mechanism Is Applicable On Services Of Renting Residential Premises as Guest House: AAR

The Odisha Authority of Advance Ruling has held that GST under the reverse charge mechanism is applicable to services by way of taking residential premises on rent for use as its guest house.The two-member bench of Gopal Krishna Pati and P.K. Mohanty has observed that the nature of rented properties clearly appeared to be residential properties used for commercial purposes.The applicant has taken on rent certain premises in New Delhi and Jajpur, Odisha, as guest houses. The guest houses are used...

Purchaser Is Not Entitled To ITC On The Purchases Made From The Seller Who Had Discharged Its Tax Liability: AAR

The Punjab Authority of Advance Ruling (AAR) has held that the purchaser is not entitled to claim Input Tax Credit (ITC) on the purchases made by it from the seller, who had discharged its tax liability.The two-member bench of Varinder Kaur and Viraj Shayamkarn Tidke has observed that no registered person shall be entitled to take credit for any input tax in respect of any supply of goods or services or both unless the tax charged in respect of the supply has been actually paid to the...

Building And Fabricating Tipper Body If Chassis Is Owned, Supplied By The Customer Attracts 18% GST: Punjab AAR

The Punjab Authority of Advance Ruling (AAR) has held that the building and fabricating of a tipper body if the chassis is owned and supplied by the customer attract 18% GST.The two-member bench of Varinder Kaur and Viraj Shayamkarn Tidke has observed that 28% GST is payable on the activity of building and fabricating a Tipper Body and mounting the same by the applicant on the chassis owned by the applicant and using its own inputs and capital goods.The applicant is engaged in Tipper Body...

Supply Of Ice Cream From The Outlets Cannot Be Considered As Supply Of “Restaurant Services”: AAR

The Gujarat Authority for Advance Ruling (AAR) has ruled that the supply of ice cream from the outlets cannot be considered as the supply of restaurant services.The two-member bench of Amit Kumar Mishra and Milind Kawatkar has observed that the readily available ice creams that are not prepared in the outlets and sold over the counter are supplies of goods. However, an ice cream that is ordered and supplied along with cooked or prepared food through the outlets would assume the character of...

Vouchers Are Neither Goods Nor Services, No ITC Available To Myntra: AAAR

The Karnataka Appellate Authority of Advance Ruling (AAAR) has held that input tax credit (ITC) is not available on the vouchers and subscription packages procured by Myntra from third-party vendors.The two-member bench of Ranjana Jha and Shikha C. has relied on the decision of the Karnataka High Court in the case of M/s Premier Sales Promotion Pvt Ltd versus Union of India & Ors., in which it was held that vouchers do not fall under the category of goods and services, and therefore, the...

GST Payable On Additional Surcharge Collected From Open Access Consumer Under Electricity Act: AAR

The Karnataka Authority for Advance Ruling (AAR) has held that the additional surcharge collected from open-access consumers as per Section 42 of the Electricity Act, 2003, is taxable under the GST Act.The two-member bench of M.P. Ravi Prasad and Kiran Reddy T. has observed that Chamundeshwari Electricity Supply Corporation Limited cannot be considered either a "governmental authority" or a "local authority."The applicant is engaged in the distribution of electricity and the sale of energy. It...

Supply Of Ready To Eat And Ready To Cook Food Products Attracts 18% GST: Karnataka AAR

The Karnataka Authority for Advance Ruling has ruled that 18% GST is applicable on the supply of ready-to-eat and ready-to-cook food products.The two-member bench of M.P. Ravi Prasad and Kiran Reddy T. has observed that all kinds of food mixes, including instant food mixes, soft drink concentrates, Sharbat, the betel nut product known as "Supari," sterilized or pasteurized millstone, ready-to-eat packaged food, and milk containing edible nuts with sugar or other ingredients, attract 18% GST.The...

Tax Cases Weekly Round-Up: 19 February To 25 February 2023

Bombay High Court GST Act Can’t Be Interpreted To Deny Right To Carry Trade And Commerce By Citizens: Bombay High Court Case Title: Rohit Enterprises Versus The Commissioner State GST Bhavan Citation: 2023 LiveLaw (Bom) 108 The Aurangabad Bench of the Bombay High Court has held that the provisions of the GST enactment cannot be interpreted so as to deny the right to carry on trade and commerce to any citizen or subject. Availability Of Interest-Free Surplus Fund To Make...

Selling Of Alcoholic Liquor For Human Consumption Is A “Non-Taxable Supply”: AAR

The West Bengal Authority for Advance Ruling (AAR) has observed that the activities of selling alcoholic liquor for human consumption by the applicant would be treated as a "non-taxable supply" and therefore fall under the category of "exempt supply" under the GST Act.The two-member bench of Brajesh Kumar Singh and Joyjit Banik has ruled that the applicant is required to reverse input tax credit (ITC) in terms of section 17(2) of the GST Act read with Rule 42 of the GST Rules for the sale of...

GST Exempted On Bouquet Made With Dry Parts Of Plants, Foliage, And Branches Of Plant: AAR

The West Bengal Authority of the Advance Ruling (AAR) has observed that bouquets made with dry parts of plants, such as foliage, flower buds, grasses, and branches of plants, are exempt from GST.The two-member bench of Brajesh Kumar Singh and Joyjit Banik has observed that the bouquet made with dry parts of plants, foliage, flower buds, grasses, and branches of plants that are dried, bleached, dyed, and colored for decorative and ornamental purposes and sold with plastic foil packaging will be...