Subsidized Deduction Made From The Employees Availing Food In The Factory/Corporate Office Would Not Be Considered A 'Supply' Under GST: AAR

The Gujarat Authority for Advance Ruling (AAR) has held that a subsidized deduction made by the applicant from the employees who are availing food in the factory or corporate office would not be considered a 'supply' under the GST Act.The bench of Amit Kumar Mishra and Milind Kavatkar has observed that input tax credit (ITC) will be available to the applicant on the GST charged by the service provider in respect of canteen facilities provided to its direct employees working in their factory and...

One Time Premium Received On Allotment Of Completed Commercial Units/Building Attracts 18% GST: AAR

The Gujarat Authority for Advance Ruling (AAR) has held that a one-time premium received by the applicant on allotment of completed commercial units or buildings attracts 18% GST.The two-member bench of Amit Kumar Mishra and Milind Kavatkar has held that the one-time premium received by the applicant on allotment of completed commercial units or buildings is a taxable supply in terms of Section 7 of the CGST/GGST Act, 2077.The applicant is engaged in a business relating to the construction of...

Supply Of Prepackaged And Labelled Rice Upto 25 Kgs, To The Factory Of Exporter Attracts 5% GST: Haryana AAR

The Haryana Authority of Advance Ruling (AAR) has held that 5% GST is applicable on supplies of prepackaged and labeled rice up to 25 kg to the factory of the exporter.The two-member bench of Sunder Lal and Kumud Singh has observed that the legislature's intention is that the supply of rice in packets of up to 25 kg, which are duly pre-packaged and labelled as per the Legal Metrology Act, 2009, and the rules made thereunder, is a taxable event and it’s not an exempted or nil-rated supply.The...

Tax Cases Weekly Round Up: 26 March To 1 April, 2023

Supreme Court Income Tax Act - Date Of Panchnama Last Drawn Starting Point Of Limitation For Completing Block Assessment Proceedings: Supreme Court Case Title: Anil Minda and Others Versus Commissioner of Income Tax Citation: 2023 LiveLaw (SC) 246 The Supreme Court has held that the date on which the Panchnama was last drawn is the starting point of the two-year limitation for completing the block assessment proceedings under the Income Tax Act 1961. Central Excise Act - To...

Supply Of The Aircraft Type Rating Training Is Exigible To GST: AAR

The Karnataka Authority for Advance Ruling (AAR) has held that the supply of aircraft-type rating training is eligible for GST.The two-member bench of M.P. Ravi Prasad and Kiran T. Reddy has observed that the supply of aircraft type rating training services to commercial pilots, in accordance with the training curriculum approved by the Directorate General of Civil Aviation for obtaining the extension of aircraft type ratings on their existing licenses, does not result in a qualification as the...

Transaction Of Transfer/Sale Of One Of The Independent Running Business Divisions Attracts 18% GST: AAR

The Karnataka Authority for Advance Ruling (AAR) has held that the transfer or sale of one of the independently running business divisions attracts 18% GST.The two-member bench of M.P. Ravi Prasad and Kiran T. Reddy has observed that the transaction of transfer or sale of one of the independent running business divisions as a whole, along with all the assets and liabilities of the independent business division on a going concern basis, constitutes a transaction of "supply" under Section 7 of the...

Supply Of Goods To The Overseas Customer Is Neither A Supply Of Goods Nor A Supply Of Services: Karnataka AAR

The Karnataka Authority for Advance Ruling (AAR) has ruled that the supply of goods to an overseas customer is treated neither as a supply of goods nor as a supply of services.The two-member bench of M.P. Ravi Prasad and Kiran T. Reddy has observed that there are two transactions involving the applicant. The first transaction is the supply of goods by the manufacturer to the applicant, and the second transaction is the supply of the same goods by the applicant to an overseas customer.In the...

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

Supreme Court Only Retail Sale Can Claim Assessment Benefits Under Section 4A Of Central Excise Act : Supreme Court Case Title: Commissioner Of Central Excise & Service Versus M/S. A.R. Polymers Pvt. Ltd. Etc. Citation: 2023 LiveLaw (SC) 223 The Supreme Court has held that mere affixation of MRP does not make goods eligible for central excise duty exemption, and what is required along with the affixation is a mandate of law that directs the seller to affix such MRP. Delhi...

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...

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

Delhi High Court Issuance Of SCN in Customs Brokers Licensing Regulations, Contemplates Dispatch Of Notice And Not Its Receipt: Delhi High Court Case Title: Commissioner of Customs (Airport & General) vs M/s R.P. Cargo Handling Services The Delhi High Court has ruled that the expression ‘issuance of show cause notice’ in Regulation 20(1) of the Customs Brokers Licensing Regulations, 2013 (CBLR), merely contemplates the dispatch of the notice and not its receipt by the Customs...