AAR
6% More GST Is Payable If Construction Services Are Not Under Affordable Residential Apartments: Kerala AAR
The Kerala Authority Of Advance Ruling (AAR) has held that affordable residential apartments attract 1.5% GST. On the other hand, for residential apartments other than affordable ones, the rate of GST is 7.5%.The bench of S.L. Sreeparvathy and Abraham Renn S. has observed that the term affordable residential apartment shall mean a residential apartment in a project that commences on or after April 1, 2019, or in an ongoing project in respect of which the promoter has not exercised the option in...
Hostels Are Not Residential Dwelling Units, No GST Exemption: Karnataka AAR
The Karnataka Authority of Advance Ruling (AAR) has held that PG/Hostel Rent paid by inhabitants does not qualify for GST exemption as the services are not akin to renting a residential dwelling for use as a residence.The bench of M.P. Ravi Prasad and Kiran Reddy T. has observed that GST on reverse charge will be applicable on the rental to be paid to the landowners.The applicant is an LLP and is in the business of providing PG/hostel services, which refer to paying guest accommodation or hostel...
Chocolate Peanut Chikkies Attracts 18% GST: AAR
The Karnataka Authority of Advance Ruling (AAR) has held that Chocolate Peanut Chikkies attract 18% GST, whereas other chikkies attract 5% GST.The bench of M.P. Ravi Prasad and Kiran Reddy T. has held that the product "Chocolate Peanut Chickies" contains cocoa powder. Cocoa and Cocoa Preparations are covered under Chapter 18. Chapter heading 1806 covers Chocolate and other food preparations containing cocoa, and chapter heading 1806 90 20 covers Sugar Confectionery containing Cocoa. Thus, the...
18% GST Payable On Service of Charging Of Battery Of Electrical Vehicle: AAR
The Karnataka Authority of Advance Ruling (AAR) has ruled that 18% GST is applicable on the service of charging the battery of an electrical vehicle.The bench of M.P. Ravi Prasad and Kriran Reddy T. has observed that the Electrical Vehicle contains a motor to rotate the wheels that functions out of the energy sourced through the battery, and thus the said vehicle qualifies to be a motor car. Thus, charging the batteries of electric vehicles amounts to charging the batteries of motor cars, and...
Gold In Any Form Fails Pass Test Of Second-Hand Goods, Marginal Scheme Benefit Not Applicable: AAR
The Kerala Authority of Advance Ruling (AAR) has ruled that the benefit of the marginal scheme is not applicable to gold, as gold in any form fails to pass the test of second-hand goods.The bench of Dr. S.L. Sreeparvathy and Abraham Renn S. has observed that the applicant cannot determine the value of gold as per Sub Rule 5 of Rule 32 of the CGST, Rules 2017, which restricts Input Tax Credit availment only on the purchase of second-hand goods, which are further sold under the margin...
Rapigro Is A Plant Growth Regulator, Attracts 18% GST: AAR
The Ahmedabad Bench of the Authority of Advance Ruling (AAR) has ruled that Rapigro attracts 18% GST.The bench of Amit Kumar Mishra and Milind Kavatkar has observed that ‘Rapigro’ is classifiable as a Plant Growth Regulator and not a fertilizer.The applicant, M/s. Isagro was engaged in the manufacture of the product Rapigro and was classifying it under TI 3507 of CETA '85 as a fertilizer. However, Central Excise authorities classified it under TI 38089340 as a 'plant growth regulator'.The...
12% GST Payable On ‘Solar Home Lighting System’: AAR
The Uttar Pradesh Authority of Advance Ruling (AAR) has held that 12% GST is payable on solar home lighting systems.The bench of Rajendra Kumar and Harilal Prajapati has observed that ‘solar home lighting systems are classified as solar-based devices covered under HSN Code 94055040.The applicant intends to supply a solar home lighting system consisting of Solar photovoltaic Modules, a lithium ferro phosphate battery, a solar charge controller, LED Lights, a solar DC Fan, a module mounting...
Gujarat AAR Rules It Lacks Jurisdiction On Supply of Goods And Services Matter in Madhya Pradesh
The Gujarat Authority for Advance Rulings (AAR) has ruled that it does not have jurisdiction to rule on a matter involving a supply of goods and services in Madhya Pradesh. The ruling was made in the case of Pooja Construction Co., which had sought an advance ruling on whether it was required to obtain registration with the State Tax Authorities of Madhya Pradesh. M/s. Pooja Construction Co. is a partnership firm, engaged in carrying on the business of general government civil...
Veterinary Instruments "AI Crate/Travis" Classified Under TI 7306, GST Applicable At 18%: GAAR
In a significant development, the Gujarat Authority Of Advance Ruling (GAAR) Bench has provided clarity on the classification and tax rate applicable to the veterinary instrument known as "AI Crate" or "Artificial Insemination Crate/Travis." The ruling comes in response to an application filed by Kantaben Rameshbhai Chaudhari, Krishna Enterprises, engaged in the manufacture of these instruments. The applicant, Kantaben Rameshbhai Chaudhari engaged in the manufacture of veterinary...
Education Provided By Isha Yoga Center Ineligible For GST Exemption: AAR Karnataka
In a recent ruling, the Karnataka Authority For Advance Ruling bench has held that the education provided by Isha Yoga Center's residential school, Isha Samskriti, does not qualify for exemption under the Goods and Services Tax (GST) laws. The ruling came in response to an application filed by Isha Yoga Center seeking clarification on the applicability of GST exemption to its educational services. M/s Isha Foundation, the contended submitted that its a Public Charitable Trust established...
Tax Cases Weekly Round-Up: 9 July To 15 July, 2023
Supreme Court Revenue Dept Can't Recover Refunded Cess Amount Because Refund Was Based On A Judgment Which Was Later Overruled : Supreme Court Case Title: Commissioner of CGST and Central Excise (J and K) vs M/s Saraswati Agro Chemicals Pvt. Ltd. Citation : 2023 LiveLaw (SC) 522 The Supreme Court has upheld the decision of the Jammu and Kashmir and Ladakh (J&K&L) High Court where the court had held that the assessee was not liable to return the Education Cess...
No Separate GST Registration Required For Each Type Of Business Services Carried From The Same Place Of Business: West Bengal AAR
The West Bengal Authority of Advance Ruling (AAR) has held that no separate registration is required for each type of business, i.e., manufacturing, reselling, or providing services carried on from the same place of business.The bench of Sarthak Saxena and Joyjit Banik has observed that, as per the proviso to Section 25(2) of the GST Act, separate registration in a State may be granted to a person who has multiple places of business in that State.The applicant is a registered person under the...