AAR
12% GST Applicable On Renting Residential Dwelling Units On Monthly Rental Basis: Karnataka AAR
The Karnataka Authority of Advance Ruling has held that 12% GST is applicable to renting residential dwelling units on a monthly rental basis.The bench of M.P. Ravi Prasad and Kiran Reddy has observed the renting of residential dwellings to students and working women for residential purposes, along with amenities and facilities such as food, furniture, appliances, cleaning, security, pest control, etc., on a monthly rental basis, as provided by the applicant, which is not exempted under entry...
GST Exemption On Unbranded Broken Rice, 5% GST On Pre-Packaged And Labelled Ones: AAR
The West Bengal Authority of Advance Ruling (AAR) has ruled that 5% GST is applicable on the supply of broken rice if supplied as “pre-packaged and labelled,", whereas no GST shall be payable on unbranded supply.The bench of Tanisha Dutta and Joyjit Banik has observed that “broken rice” is classifiable under Chapter Heading 1006. Therefore, the rate of tax on the supply of “broken rice” would be the same as in the case of the supply of rice. In terms of Notification No. 06/2022, Central Tax...
Tax Cases Weekly Round-Up: 27 August To 2 September, 2023
Delhi High Court DGGI Can’t Be Stopped From Taking Intelligence-Based Enforcement Action When Investigation By Other Authority Is Going On: Delhi High Court Case Title: M/S. Hanuman Enterprises Pvt. Ltd. Versus The Additional Director General Directorate General Of GST Citation: 2023 LiveLaw (Del) 756 The Delhi High Court has held that the Directorate General of Goods and Service Tax Intelligence (DGGI) cannot be stopped from taking intelligence-based enforcement action...
Olivol Body Oil Takes Care Of The Skin, And Doesn’t Cure Skin, Attracts 28% GST: AAR
The West Bengal Authority of Advance Ruling (AAR) has ruled that Olivol Body Oil takes care of the skin but does not cure it. Olivol Body Oil is covered under tariff heading 3304.The bench of Tanisha Dutta and Joyjit Banik has observed that olivol body oil is commonly understood as preparations for the care of skin, thereby being considered a cosmetic product used to get soft and smoother skin and not a medicament used for the treatment or prevention of any disease or ailment.The applicant...
18% GST Payable On Foam Cup Pad: AAR
The Uttar Pradesh Authority of Advance Ruling (AAR) has ruled that 18% GST is payable on foam cup pads.The bench of Amit Kumar and Harilal Prajapati has observed that the foam cup pad’ made of polyurethane, glue, and fabric, is to be classified under heading 39262091.The applicant is in the business of manufacturing highly specialised foam cup pads on state-of-the-art machines using raw materials including foam made from polyurethane, glue, and fabric.The applicant has sought an advance ruling...
ITC Admissible On GST Paid On Inward Supply For Fixing Of Plant And Machinery To Earth By Structural Support: AAR
The Rajasthan Authority of Advance Ruling (AAR) has held that Input Tax Credit (ITC) The Rajasthan Authority of Advance Ruling (AAR) has held that input tax credit (ITC) is admissible on GST paid on inward supply for fixing plant and machinery to earth by foundation or structural support.The bench of Umesh Kumar Garg and Mahesh Kumar Gowla has observed the provisions of Sections 16 and 17 of the CGST Act, 2017, and held that the input tax credit of GST paid on the inward supply of structural...
Tax Cases Weekly Round-Up: 30 July To 5 August, 2023
Delhi High Court No TDS Deductible On Commission Payment To Non-Resident Agent Overseas: Delhi High Court Case Title: PCIT Versus Maharani Enterprises The Delhi High Court has held that commission payments to non-resident agents overseas are not chargeable to tax and there is no TDS required to be deducted under Section 195 of the Income Tax Act. Bombay High Court No Order On Merits Can Be Passed If Appeal Is Defective For Non-Production Of Certified Copy: Bombay High Court ...
ITC Can’t Be Availed On Test Drive Vehicle When Retained In Workshop As Replacement Vehicle: AAR
The Telangana Authority of Advance Ruling (AAR) has held that Input Tax Credit (ITC) cannot be availed on test-drive vehicles when retained in a workshop as a replacement vehicle.The bench of S.V. Kasi Visweswara Rao and Sahil Inamdar have observed that the availability of ITC depends on the occurrence of a future event, i.e., whether he retains the vehicle in his workshop as a replacement vehicle or sells vehicles. If the vehicle is further supplied, then ITC can be claimed.The applicant is in...
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...