AAR
Entire Leased Land Treated As Industrial Construction: Gujarat AAR Blocks ITC On Rent, Repairs & Vacant Portion For Tata-Subsidiary
The Gujarat Authority for Advance Ruling (AAR) has disallowed Input Tax Credit (ITC) of Goods and Services Tax (GST) paid on lease rental on all three counts viz. for constructing factory building on leased land as well as vacant portion of land and on repairs, maintenance and renovation of factory building. The bench of Mr. Vishal Malani (Member- Central Tax) and MS. Sushma Vora (Member- State Tax) has ruled on ITC eligibility of GST paid on lease rental by dismissing the view of...
GST Not Payable On MGO Charges Collected By ONGC From GAIL For Shortfall In Gas Offtake: Tamil Nadu AAR
The Authority for Advance Ruling of Tamil Nadu recently held that Minimum Guaranteed Off-take (MGO) charges collected by ONGC from GAIL for short-lifting natural gas are not liable to Goods and Services Tax (GST).In a clarification key for the oil and gas sector, the authority ruled that these charges are in the nature of liquidated damages for breach of contract and do not constitute a taxable “supply” under GST law.The coram, comprising C Thiyagarajan, IRS (Additional Commissioner, CGST) and B...
Rapido Liable To Pay GST On Services Provided By Independent Four-Wheeler Cab Service Provider: Karnataka AAR
The Karnataka Authority of Advance Ruling has held that the Rapido is liable to pay GST on services provided by independent four-wheeler taxi service providers.The bench of Dr. M.P. Ravi Prasad and Kiran Reddy T has observed that Rapido satisfies the definition of an “e-commerce operator” and the nature of supply as conceptualized in Section 9(5) of CGST Act 2017 read with notification No. 17/2017 dated 28.06.2017.The applicant stated that it is a registered private limited company, also...
ITAT & AAR Weekly Round-Up: 21 To 27 July 2024
ITATITAT Allows Depreciation Claim On Non Compete Fee, Deletes PenaltyCase Title: Metro Tyres Limited Versus ACITThe Delhi Bench of Income Tax Appellate Tribunal (ITAT) has allowed the claim of depreciation on non-competing fees.Long Term Capital Gain On Sale Of Shares By Mauritius Company Is Not Liable To Be Taxed In India: ITATCase Title: M/s. Superb Mind Holdings Ltd. Versus Assistant Commissioner of Income TaxThe Delhi Bench of Income Tax Appellate Tribunal (ITAT) has held that long-term...
GST Payable On Advance Received Against Supply Portion Of Work Contract: Gujarat AAR
The Gujarat Authority of Advance Ruling (AAR) has held that the GST is payable in advance received against the supply portion in respect of the work contract.The bench of Amit Kumar Mishra and Milind Kavatkar has observed that the turnkey contract entered into by the applicant has been held to be a work contract.The applicant is in the engineering, procurement, and construction (EPC) contract business with various distribution companies (DISCOMS).The applicant stated that they have a turnkey...
Deduction Of Nominal Amount From Employee's Salary For Availing Food Facility Is Not 'Supply': Gujarat AAR
The Gujarat Authority of Advance Ruling (AAR) has ruled that deduction of nominal amount from employee's salary for availing food facility is not 'supply' under the provisions of Section 7 of the CGST Act, 2017.The bench of Amit Kumar Mishra and Milind Kavatkar has observed that the exceptions are Schedule-I, which includes activities made or agreed to be made without consideration, and Schedule-III, which includes activities that shall not be treated as a supply of goods or services. The...
ITC Available On Capital Goods Used For Transmission Of Electricity From Power Station Of DISCOM To Factory Premises: Gujarat AAR
The Gujarat Authority of Advance Ruling (AAR) has ruled that the Input Tax Credit (ITC) available on capital goods used for transmission of electricity from power stations of Distribution Companies (DISCOM) to factory premises.The bench of Amit Kumar Mishra and Milind Kavatkar has observed that there is no provision under the CGST Act, 2017 which bars availment of ITC by the applicant if subsequently the capitalised goods are handed over to Gujarat Energy 'Transmission Corporation Ltd....
AAAR & AAR Half Yearly Digest: January To June 2024
AAARNo GST Payable By Fair Price Shop Selling Kerosene Oil To Ration-Card Holders: AAARAppellant's Name: Chanchal SahaThe West Bengal Appellate Authority of Advance Ruling (AAAR) has held that no GST is payable by fair-priced shops selling kerosene oil to ration-card holders.AARE-Commerce Operators Liable To Collect TCS For Providing Platform For Selling Digital Gold: AARApplicant's Name: M/S. Changejar Technologies Pvt. Ltd.The Karnataka Authority of Advance Ruling (AAR) has ruled that...
Rotary Car Parking System Is Civil Structure, GST ITC Not Admissible: AAR
The Tamil Nadu Authority of Advance Ruling (AAR) has ruled that input tax credit (ITC) is not admissible on rotary car parking systems.The bench of D. Jayapriya and A. Valli observed that the Rotary car parking system is an infrastructure with the aim of catering to the need for greater urban density and compactness in cities and to make better use of scarce land. The Rotary car parking system provides additional space to park the vehicles depending upon the number of storeys built or preferred....
Infant Food Products Containing Milk And Other Ingredients Subject To 18% GST: AAR
The Rajasthan Authority of Advance Ruling (AAR) has ruled that infant food products containing milk and other ingredients are subjected to 18% GST.The bench of Mahipal Singh and Mahesh Kumar Gowla has observed that, as per Chapter 19, milk products are one of the constituents of the final product, whereas Chapter 4 deals with milk products only. The principle or dominant item of the applicant is the manufacturing of infant milk formula containing cereals, protein supplements, etc., which is a...
18% GST Applicable On ZlD Treated Water: AAR
The Gujarat Authority of Advance Ruling (AAR) has ruled that 18% GST is applicable on Zero Liquid Discharge (ZLD) treated water.The bench of Amit Kumar Mishra and Milind Kavatkar has observed that the water obtained from the Common Effluent Treatment Plant (CETP), which has further undergone the processes of ultrafiltration and reverse osmosis in the ZLD plant, has a small amount of dissolved minerals and chemicals and is virtually free from all types of toxic materials. This treated water is...
5% GST Payable On Mix Mukhwas And Roasted Til & Ajwain: AAR
The Gujarat Authority of Advance Ruling (AAR) has ruled that 5% GST is payable on Mix Mukhwas, Roasted Til, and Ajwain.The bench of Amit Kumar Mishra and Milind Kavatkar has observed that both the products, Mix Mukhwas and Roasted Til and Ajwain, mainly comprise sesame seeds, with 60% of the first product and 97% of the second product. The process undertaken on the said seeds of cleaning, mixed with a salt and citric acid solution for slating purposes, roasting, and adding turmeric powder does...