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...

GST Exempted On Services Of Milling Of Food Grains Into Flour To Govt. Of West Bengal For PDS: AAR

The West Bengal Authority of Advance Ruling (AAR) has ruled that services by way of milling food grains into flour (atta) and supplying it to the Food & Supplies Department, Govt. of West Bengal, for distribution under the Public Distribution System, are eligible for GST exemption.The two-member bench of Brajesh Kumar Singh and Joyjit Banik has observed that the composite supply of services by way of milling of wheat into flour (atta) to the West Bengal government for distribution of flour...

5% GST Applicable On Value Of Part Of Gold Retained For Job Work: West Bengal AAR

The West Bengal Advance Ruling Authority (AAR) has ruled that the value of 10 grams of gold is included in the value of job work services and is subject to 5% GST.The bench of Brajesh Kumar Singh and Joyjit Banik has observed that the applicant retains 10 gm of pure gold on account of wastage, which is beyond the permissible limit of wastage in the nature of normal loss. The value of pure gold retained by the applicant will be included in the cost of providing job work services.The applicant...

Tax Cases Weekly Round-Up: 5 February to 11 February 2023

Supreme Court Exemption Of Newspaper’s Income Utilised For Charity: Supreme Court Remands The Matter To AO Case Title: PCIT Versus Servant of People Society The Supreme Court has remanded the appeal in respect of the exemption of newspaper income used for charity. Delhi High Court Department Can’t Go Behind TRC Issued By The Other Tax Jurisdictions: Delhi High Court Case Title: Blackstone Capital Partners (Singapore) VI FDI Three Pte. Ltd. Versus ACIT Citation: 2023...

Works Contract Services Of Construction Of Railway Under Bridge Exigible To 18% GST: Karnataka AAR

The Karnataka Authority of Advance Ruling (AAR) has ruled that Indian Railways' contract services for the construction of the railway under the bridge are subject to 18% GST.The two-member bench of M.P. Ravi Prasad and Kiran T. Reddy has observed that contract services for the construction of tunnels executed for Indian Railways by the applicant is exigible to GST at 18% if the applicant is providing the services either as the main contractor or as a subcontractor to the main contractor.The...

Tax Cases Weekly Round-Up: 29 January To 4 February 2023

Supreme Court S.153A Income Tax Act| Can Assessments Be Reopened If No Incriminating Material Is Found During Search? Supreme Court Reserves Judgment Case Title : PR. COMMISSIONER OF INCOME TAX CENTRAL v. ABHISAR BUILDWELL P. LTD The Supreme Court on Thursday reserved its judgment on whether in an assessment under section 153A of the Income Tax Act, besides the incriminating material found during search, such materials which the Assessing Officer has on hand and the third party...

Rajasthan Housing Board, A Govt. Authority - Services Exempted From GST: AAR

The Rajasthan Authority for Advance Ruling (AAR) has held that services provided by the Rajasthan Housing Board in relation to any function entrusted to a municipality under Article 243 W of the Constitution are exempt from GST.The two-member bench of Umesh Kumar Garg and M.S. Kavia has observed that the Rajasthan Housing Board is covered under the definition of "government authority."The applicant, Rajasthan Housing Board (RHB), was established on February 24, 1970, by the Rajasthan Housing...

Affiliation Provided By Kota University To Its Constituent Colleges For Imparting Education Is A Supply, Attracts GST: Rajasthan AAR

The Rajasthan Authority of Advance Ruling (AAR) has observed that affiliation provided by Kota University to its constituent colleges for imparting education is a supply and taxable under GST.The two-member bench of Umesh Kumar Garg and M. S. Kavia has observed that the affiliation services provided by Kota University enable the institution to conduct the course or programme and do not relate to the admission of students to the course or programme or the conduct of examinations for admission to...