Corpus Fund By RWAs Taxable As Advance For Future Services, GST Payable On Receipt: Karnataka AAR

The Karnataka Authority for Advance Ruling (AAR) has held that corpus or sinking funds collected by residential associations constitute consideration for future supply of services and are liable to Goods and Services Tax (GST) at the time of receipt, treating such collections as advances under the GST law. A Bench comprising Members Kalyanam Rajesh Rama Rao and Sivakumar S Itagi, while hearing an application filed by Liberty Square Apartment Owners Association, ruled that GST liability arises...

Concessional GST On Irrigation Rubber Rings Conditional On Hard Rubber Use: Rajasthan AAR

The Rajasthan Authority for Advance Ruling (AAR) has held that rubber rings used in sprinkler or drip irrigation systems will qualify for concessional Goods and Services Tax (GST) only if they are made of hard rubber and used exclusively for irrigation purposes, and not otherwise. The Bench comprising Members Utkarsha and Dr Akhedan Charan was hearing an application filed by Arti Pitaliya, a Jaipur-based manufacturer of rubber components used in irrigation systems. It held: “yes, if rubber...

Biodegradable Carry Bags Eligible For 5% GST Subject To Notification Conditions: Rajasthan AAR

The Rajasthan Authority for Advance Ruling (AAR) in February, held that concessional GST at 5% applies to biodegradable carry bags only if the goods satisfy the condition of being biodegradable under the relevant notification. It also held that it cannot determine whether a product meets scientific standards of biodegradability or compostability. The Authority Bench comprising Utkarsha and Dr. Akhedan Charan disposed of an application filed by Pradeep Verma concerning classification and GST...

Semen Sorting Services Exempt From GST As Support To Animal Husbandry: Gujarat AAR

The Gujarat Bench of the Authority for Advance Ruling (AAR) on 3 March, held that semen sorting services using specialised technology qualify as support services to animal husbandry and are exempt from Goods and Services Tax (GST). The Authority Bench comprising Sushma Dora and Vishal Malani decided on an application filed by Jiva Sciences Private Limited, which undertakes separation of X and Y chromosomes from bovine semen using proprietary technology. It ruled: “'Semen Sorting Services' are...

GST On Iced Tea 5%, Beverages Without Fruit Pulp Or Juice 40%: West Bengal AAR Clarifies

The West Bengal Authority for Advance Ruling (AAR) has ruled that non-alcoholic beverages not containing fruit pulp or fruit juice fall under other non-alcoholic beverages and attract GST at 20% CGST and 20% SGST, while iced tea preparations and tea extracts are classifiable as extracts, essences and concentrates of tea, and preparations based on such extracts, attracting GST at 2.5% CGST and 2.5% SGST. A coram of Joint Commissioner, CGST & CX, Shafeeq S and Senior Joint Commissioner, SGST...

Delhi AAR Refuses Advance Ruling After GST Intelligence Issues Notice On Same Issues

The Delhi Bench of the Authority for Advance Ruling (AAR) has rejected an advance ruling application filed by a transport company after holding that issues raised in the application had become sub judice following the subsequent issuance of a show cause notice by the Directorate General of GST Intelligence. A coram of Bhavan Meena and Asha Chaudhary noted that the applicant did not disclose the issuance of the show cause notice during the advance ruling proceedings after it was issued, which...

Used Car Dealers Can Claim ITC On Repairs, Rent and Capital Goods Under GST Margin Scheme: Kerala AAR

The Kerala Authority for Advance Ruling (AAR) has held that dealers trading in second-hand motor vehicles under the GST margin scheme can claim Input Tax Credit (ITC) on inward supplies used in the course of business, except on the purchase of used vehicles. The ruling was delivered by IRS Jomy Jacob, Member (CGST), and Mansur M.I., Member (SGST), on an application filed by Goexotic Plus91 Motors Private Limited, a GST-registered dealer in old and used luxury vehicles. The applicant purchases...

Dermatological Treatments For Psoriasis And Skin Disorders Exempt from GST: Kerala AAR Clarifies

The Kerala Authority for Advance Ruling (AAR) ruled that healthcare services provided for the treatment of psoriasis, dandruff, dermatitis, fungal infections and folliculitis are exempt from GST. The ruling was delivered by a coram comprising Jomy Jacob, IRS (Additional Commissioner of Central Tax) and Mansur M. I. (Joint Commissioner of State Tax). The applicant, a board, engaged in providing dermatological treatments through qualified medical practitioners at licensed clinics. It sought...

GST | ITC Not Available On Construction Of Warehouse Used For Storage Or Leasing: Gujarat AAR

The Gujarat Authority for Advance Ruling (AAR) has held that input tax credit (ITC) is not admissible on goods and services used for construction of a warehouse or shed, even when such warehouse is used for providing taxable storage and warehousing services or is leased out for business purposes. The ruling was delivered by the bench of CGST Member Vishal Malani and SGST Member Sushma Vora in the application of a registered GST assessee engaged in providing storage and warehousing...

Tree Plantation & Maintenance In Non-Forest Areas By Charitable Trust Exempt From GST: Gujarat AAR

The Gujarat Authority for Advance Ruling (AAR) has granted exemption to tree plantation and maintenance of them by a Trust in non-forest arears like unutilized barren lands, roadsides, amidst lane dividers, on private lands and every other available patch in its reach. In a recent ruling Mr. Vishal Malani (Member- Central Tax) and Ms. Sushma Vora (Member- State Tax) has held that Entry No. 1 of Notification No. 12/2017 was applicable to tree plantation and maintenance by the Applicant...

Security & Scavenging Services To Govt Hospitals Qualify As "Pure Services", Exempt From GST: West Bengal AAR

The West Bengal Authority for Advance Ruling (AAR) has held that security and scavenging services provided to government-run medical colleges and hospitals qualify as “pure services” and are exempt from Goods and Services Tax (GST) under Notification No. 12/2017. The Authority held that services essential to the functioning of public hospitals, when supplied without any element of goods, fall within activities relating to functions entrusted to Panchayats and Municipalities under...

Digitalisation, GIS Mapping And Tech Consultancy For Jal Jeevan Mission Are 'Pure Services', Exempt From GST: West Bengal AAR

The West Bengal Authority for Advance Ruling (AAR) has held that digitalisation, GIS mapping, monitoring, data management and technical consultancy services provided to the Public Health Engineering Department (PHED) in connection with water supply schemes qualify as “pure services” and are exempt from Goods and Services Tax (GST) under Notification No. 12/2017. The Authority ruled that such services are directly related to functions entrusted to Panchayats and Municipalities under...