AAR
Raula Gundi Is A Chewing Tobacco Without Lime Tube, Attracts 28% GST: AAR
The Orissa Authority for Advance Ruling (AAR) has held that "Raula Gundi," which is "chewing tobacco without lime tubes," attracts 28% GST with a 160% Compensation Cess.The two members of the bench, G.K. Pati and P.K. Mohanty have observed that "Raula Gundi," i.e., chewable gundi, is "chewing tobacco," the principal or predominant ingredient of which is tobacco.The applicant is in the business of manufacturing "Raula Gundi" (Chewable Gundi, its final product) and supplying it to various betel...
GST ITC Not Available On Goods And Services Used For Construction Of A Pipeline Laid Outside The Factory Premises: AAR
The Maharashtra Authority of Advance Ruling (AAR) has held that Input Tax Credit (ITC) is not available on goods and services used for the construction of a pipeline laid outside the factory premises.The two-member bench of M. Rammohan Rao and T.R. Ramnani has observed that, as per the explanation to Section 17 of the GST Act, "plant and machinery" does not include a pipeline laid outside the factory premises.The applicant, Mumbai Aviation Fuel Farm Facility Private Limited (MAFFPL), is in the...
Supply of Tata Garbage Tipper Vehicle To Municipalities Attracts 28% GST: AAR
The Maharashtra Authority of Advance Ruling (AAR) has held that the supply of Tata garbage tipper vehicles to Municipalities shall attract 28% GST.The two-member bench of M. Rammohan Rao and T.R. Ramnani has observed that garbage tipper vehicles can be used for the transportation of goods. The starting words of Entry 8704 are "Motor Vehicles for the Transport of Goods." Thus, the rate of tax applicable shall be 28%; as only refrigerated vehicles are taxable at 18%; and all trucks covered under...
18% GST Payable On Glaze Gels: AAR
The Maharashtra Authority of Advance Ruling (AAR) has held that 18% GST is payable on glaze gels.The two-member bench of M. Rammohan Rao and T.R. Ramnani has observed that while sugar-baked confectionery is directly sold to ultimate end users for consumption, glaze gel is not consumed by end consumers, rather its product is used by cake manufacturers as a filling between sponge layers of cakes.The applicant manufactures glaze gels and markets them to bakeries all across India. The glaze gel is...
Transfer Of Monetary Proceeds By IVL India To ILV Sweden Attracts IGST Under RCM: AAR
The Maharashtra Authority of Advance Ruling (AAR) has ruled that the transfer of monetary proceeds by IVL India to the applicant IVL Sweden will be liable for payment of integrated goods and services tax under the reverse charge mechanism.The two-member bench of M. Rammohan Rao and T.R. Ramnani has observed that other than the service provided by the applicant to the Municipal Corporation of Greater Mumbai (MCGM), there is a very definite service being provided by IVL Sweden, located outside...
Tax Cases Weekly Round-Up: 11 December to 17 December 2022
Supreme Court Income Tax Dept. Can't Initiate Reassessment Proceedings During The Pendency Of The Rectification Proceedings: Supreme Court Case Title: S.M. Overseas (P) Ltd. Versus CIT The Supreme Court has held that the income tax department cannot initiate the reassessment proceedings during the pendency of the rectification proceedings. The division bench of Justice M.R. Shah and Justice C.T. Ravikumar has observed that the Punjab and Haryana High Court has committed a ...
18% GST Is Payable On Work Contract Service Of Constructing Warehouse And Cold Storage Godown: AAR
The Telangana Authority of Advance Ruling (AAR) has ruled that 18% GST is payable on work contract services for constructing warehouses and cold storage godowns for Telangana State Industrial Infrastructure Corporation Limited (TSIICL), which will rent out the facilities.The two-member bench of S.V. Kasi Visweswara Rao and Sahil Inamdar has observed that TSIICL is a government entity. However, the original notification No. 11/2017 applied a concessional rate of tax to government entities and...
Tax Cases Weekly Round-Up: 04 December To 10 December 2022
Supreme Court Concessional Rate Of Sales Tax Not Applicable On Oxygen As It Is Not A Raw Material For Manufacture Of Steel: Supreme Court Case Title: State of Jharkhand and others Versus Linde India Limited and Another The Supreme Court has held that the main function of oxygen in manufacturing steel is to reduce the carbon content; therefore, it can be considered a refining agent but not a raw material, so the concessional rate of sales tax is not available on oxygen. The...
RCM Not Applicable On Reimbursement Of Expenses Paid On Behalf Of Company At Actuals Incurred By The Employee Staff Who Is Also A Whole-Time Director: AAR
The Karnataka Authority for Advance Ruling (AAR) has held that the reverse charge mechanism (RCM) is not applicable to reimbursement of expenses paid on behalf of the company at actuals that are incurred by the employee staff, who is also a whole-time director of the company.The two-member bench of M.P. Ravi Prasad and Kiran Reddy T. has observed that reimbursement of expenses at an actual cost that is incurred by the employee staff on behalf of the company is not subject to tax.The applicant is...
GST Concessional Rate Is Not Applicable On Maintenance And Repair Services Of Test-Bench Equipment For Aeronautics: AAR
The Karnataka Authority of Advance Ruling (AAR) has held that a concessional rate under GST is not applicable to maintenance and repair services of test-bench equipment for aeronautics.The two-member bench of M.P. Ravi Prasad and Kiran Reddy T. have observed that the concessional rate of GST of 5% is applicable to only Maintenance, repair or overhaul services in respect of aircraft, aircraft engines, and other aircraft components or parts. The applicant is providing maintenance and repair...
Satin & Taffeta Rolls Used For Printing Purpose Attract 12% GST: AAR
The Karnataka Authority of Advance Ruling (AAR) has held that the products "satin rolls" and "taffeta rolls" with sizes between 19 mm and 40 mm are classifiable under tariff heading 5807 10 20 and attract 12% GST.The two-member bench of Kiran Reddy T. and M.P. Ravi Prasad has observed that taffeta rolls are made up of polyester yarn with an acrylic coating to protect from raveling or fraying and also to have better printing quality. Satin rolls are made up of polyester yarn with an optical or...
Rejected Paddy Seeds Not Fit For Human Consumption, 5% GST Leviable: Chhattisgarh AAR
The Chhattisgarh Authority for Advance Ruling (AAR) has held that 5% GST is payable on rejected or damaged paddy seeds.The two-member bench of Sonal K. Mishra and Abhinav Aggarwal has observed that rejected paddy seed that is not fit for human consumption would merit classification under chapter heading 100610.The applicant is engaged in the business of running a rice mill, and the present application has been filed by them seeking a ruling regarding the classification and applicability of GST...