The AAR, Gujarat in the case of In Re. M/s. Suzuki Motors Gujarat Pvt. Ltd. ruled that, GST is not payable on amount recovered for canteen facility provided to employer from permanent employees only. It was further held that, the Applicant is eligible to claim ITC on the amount paid to the supplier of service for providing canteen facilities to the extent of cost borne by the Applicant in relation to permanent employees only.
GST leviable at 18 percent on solar-powered submersible pump
The AAR, Uttar Pradesh in the case of In Re: M/s. Aastha Traders ruled that, solar powered submersible pump along with solar panels and convertor would be considered as mixed supply and GST would be levied at the rate of 18 percent.
GST shall be levied on payment of lump sum upfront premium as transfer charges of leasehold rights
It is in the nature of compensation for agreeing to do the transfer of the Applicant’s rights in favour of the Assignee. It is a service classifiable under “Other miscellaneous service” i.e., SAC 999792 and taxable at the GST rate of 18% under SI No. 35 of Notification No. 11/2017- Central Tax (Rate) dated June 28, 2017.
Compensation collected for Liquidated Damages under the Agreement will be subject to GST
The Andhra Pradesh, AAR in the matter of South India Krishna Oil & Fats (P.) Ltd. held that the compensation amounts, such as liquidated damages or trade settlement, collected by the Applicant from customers for non-performance or breach of contracts constitute a supply of service and are liable to GST.
Printing and supply of textbooks to the Government department are taxable under GST
Printing and supply of textbooks to the Government department are taxable under GST
ITC is permissible when the consideration is settled via Book Adjustment
The West Bengal, AAR in the case of Paragon Polymer Products (P.) Ltd., held that claiming credit of input tax by the assessee cannot be denied under section 16(2) of the CGST Act when payment is settled through book adjustments because the law has not put any restriction on such adjustments.
Perquisites provided by the employer to the employee under the contractual agreement would not be considered as Supply under GST
The Gujarat AAR in the matter of Kohler India Corporation (P.) Ltd., In re [Advance Ruling No. GUJ/GAAR/R/2024/03 dated January 05, 2024], held that where the Applicant under the Factories Act, 1948 (“the Factories Act”) entered into a contract with the canteen service provider (“CSP”) to provide canteen facilities to workers, then the deductions made by […]
ITC is not available in relation to construction of immovable property which is further let out for commercial purpose
The Hon’ble West Bengal Appellate Authority for Advance Ruling in the case of In Re. Bathula Mahesh Babu allowed the appeal filed by the Revenue Department, thereby holding that no ITC is allowed on Input Goods or Services in relation to construction of immovable property which is further let out for commercial purposes.
Supply of service of removal of hump by dredging to the Government is exempt from levy of GST
The West Bengal AAR, in the case of In Re. Dredging and Desiltation Company (P.) (Ltd.) [Order No. 25/WBAAR/2023-24 dated December 20, 2023] ruled that, no tax is leviable on the supply of service of removal of hump by dredging to the Government as the supply of aforesaid service is exempt from levy of GST […]
Rent received from the Government Hostel is taxable under GST
The Telangana AAR, in the case of In Re. Navya Nuchu [TSAAR Order No. 05/2024 dated February 09, 2024], held that the act of renting the property to the Schedule Caste Development Department, Government Welfare Departmental Hostels and Government Social Welfare College Boys Hostel (“Government SWCBH”) are not qualified for exemption under Notification No. 12/2017-Central Tax […]