GST
Cost Of The Diesel For Providing DG Set Rental Service Attracts 18% GST: Uttarakhand AAR
The Uttarakhand Authority of Advance Ruling (AAR) has ruled that 18% GST is applicable on the cost of the diesel incurred for running diesel generators (DG) in the course of providing DG rental service.The two-member bench of Anurag Mishra and Rameshwar Meena has observed that consideration for reimbursement of expenses, such as the cost of the diesel for running the DG set, is nothing but an additional consideration for the renting of the DG set.The applicant is a partnership firm in the...
GST Payable On Medical insurance premium for employees and pensioners: Telangana AAAR
The Telangana Appellate Authority of Advance Ruling (AAAR) has ruled that no GST exemption is available on medical insurance premiums taken to provide health insurance to employees, pensioners, and their family members.The two-member bench of Neetu Prasad and B.V. Siva Naga Kumari has observed that the insurance services for employees and employees' family members received by the appellant are not in direct and proximate relation to the water supply and sewerage-related functions entrusted under...
ITC Can't Be Availed By Housing Society On Works Contract Services Of Repairs, Renovations, Rehabilitation: AAAR
The Maharashtra Appellate Authority of Advance Ruling (AAAR) has ruled that the housing society is ineligible to claim input tax credit (ITC) on contract services received from their appointed contractor due to the housing society's ineligibility to claim ITC on repairs, renovations, and rehabilitation works.The two-member bench of Ashok Kumar Mehta and Rajeev Kumar Mital has observed that the society itself is not a work contract service provider, nor is it in the business of providing work...
Tax Paid On Purchases To Meet The CSR Obligations Is Eligible For ITC: Telangana AAR
The Telangana Authority of Advance Ruling (AAR) has ruled that the tax paid on purchases made to meet the obligations under corporate social responsibility (CSR) will be eligible for input tax credit (ITC) under the CGST and SGST Acts.The two-member bench of S.V. Kasi Visweswara Rao and Sahil Inamdar has observed that the expenditure made towards corporate responsibility under Section 135 of the Companies Act, 2013, is an expenditure made in furtherance of the business.The applicant is a...
GST Not Payable On Notice Pay Recovery From Outgoing Employee: Punjab AAR
The Punjab Authority of Advance Ruling (AAR) has held that the GST is not payable on notice pay recovered from outgoing employees.The member bench of Sunder Lal and Kumud Singh has observed that the amount received as notice pay recovery by the applicant from the employees who leave the applicant company without serving the mandatory notice period mentioned in the employment contract is not a consideration for any supply or service.The applicant is a multi-disciplinary consulting organisation...
Activities Carried Out by Sub-Contractor For Shifting Electrical Utilities Can't be Regarded as Composite Supply of Works Contract: AAR
The West Bengal Authority for Advance Ruling (AAR) has held that activities carried out by subcontractors for the shifting of electrical utilities for the construction of roads cannot be regarded as a composite supply of works contracts.The two-member bench of Brajesh Kumar Singh and Joyjit Banik has observed that providing services of shifting electrical utilities alone cannot be regarded as providing services by way of road construction.The applicant is in the business of rendering various...
Liquidated Damages Recoverable From Bi-electric India For Delay In Commissioning, Doesn't Qualifies As Supply, No GST Payable: AAAR
The Telangana Appellate Authority of Advance Ruling (AAAR) has held that liquidated damages recoverable by the applicant from Bi-electric India on account of delay in commissioning do not qualify as a "supply" and no GST is payable.The two-member bench of B.V. Siva Naga Kumari and Neetu Prasad has observed that the amount paid as "liquidated damages" is an amount paid only to compensate for the injury, loss, or damage suffered by the aggrieved party due to a breach of contract. There is no...
ITC Can Be Claimed Under Marginal Scheme On Rent, Advertisement expenses, commission, Professional expenses: AAR
The Karnataka Authority of Advance Ruling (AAR) has held that the input tax credit (ITC) under the marginal scheme on expenses like rent, advertisement expenses, commission, professional expenses, and other like expenses is subject to sections 16 to 21 and rules 36-45 of the CGST Act and Rules 2017.The two-member bench of M.P. Ravi Prasad and Kiran Reddy T. has observed that ITC can be claimed on capital goods under the marginal scheme, subject to sections 16 to 21 and rules 36-45 of the CGST...
Applicant Withheld Information Regarding Commencement Of Investigation: AAAR Declares AAR's Ruling Void
The Gujarat Appellate Authority of Advance Ruling (AAAR) declared the AAR ruling void as the appellant had withheld information regarding the commencement of an investigation against them on the issue raised by them in the application for an advance ruling.The two-member bench of Vivek Ranjan and Milind Torawane has observed that the term "proceeding" is a very comprehensive term and, generally speaking, means a prescribed course of action for enforcing a legal right. It necessarily comprises...
Setting up of Electric Loco Shed For Railway Constitutes Composite Supply Of Works Contract Service: AAAR
The Uttar Pradesh Appellate Authority of Advance Ruling (AAAR) has held that the setting up of an Electric Loco Shed for the Railway constitutes a composite supply of work contract service.The two-member bench of S. Kannan and Ministhy S. has observed that the project of setting up an electric loco shed at Saiyedpur Bhitri, Uttar Pradesh, fulfils the conditions of it being an immovable property.The appellant has entered into a joint venture with M/s Indwell Constructions Private Limited and...
Affordable Residential Apartments Attracts 1.5% GST: Kerala AAR
The Kerala Authority of Advance Ruling (AAR) has held that affordable residential apartments attract 1.5% GST.The bench of Sreeparvathi and Abraham Renn has held that a new tax structure for the real estate sector was introduced with effect from 01.04.2019 onwards by the amendment of Notification No. 11/2017 – Central Tax (Rate) dated 28.06.2017 by Notification No. 03/2019 – Central Tax (Rate) dated 29.03.2019. The construction services are being rendered by the applicant after 01.04.2019 and...
5% GST On Fishing Vessel Marine Engine And Its Spare Parts: Kerala AAR
The Kerala Authority of Advance Ruling (AAR) has observed that 5% GST is applicable on fishing vessel marine engines and their spare parts.The two-member bench of S.L. Sreeparvathy and Abraham Renn S. has observed that marine engines and their spare parts are supplied for use in vessels falling under Customs Tariff Heading 8902. If it is supplied for use other than as part of fishing vessels, GST at the applicable rate and the respective Customs Tariff Headings in which it is classified will...