Category: AAR

AARGST Article

Assessee providing services of ‘Marketing/Recruitment/Referral Consultant’ do not qualify as Intermediary

byCA Bimal Jain

The Telangana, AAR in the matter of M/s. Center for International Admission and Visas (CIAV), held that services of ‘Marketing/Recruitment/Referral Consultant’ by the Assessee to foreign universities on principal to principal basis do not qualify as ‘intermediary’ as defined under Section 2 (13) of the IGST Act. Further, the activity of forwarding applications of the aspiring students by the Assessee to foreign universities qualifies as ‘export of service’ in terms of Section 2(6) of the IGST Act provided the payments are received in convertible foreign exchange.

AARGST Article

Paper Cups would fall under HSN 4823 40 00 and attract GST at the rate of 18 percent

byCA Bimal Jain

The AAR, West Bengal in the case of In Re. Sekandar Sarkar ruled that, Paper Cups manufactured would fall under HSN 4823 40 00 and attract GST at the rate of 18 percent as the aforesaid goods would fall under Chapter / Heading / Subheading / Tariff item 4823 as specified in entry Sl. No. 157 of Schedule-III of Notification No. 1/2017-Central Tax (Rate) dated June 28, 2017.

AARGST Article

ITC is not available for the construction of the immovable property for renting it out for commercial purposes

byCA Bimal Jain

The Tamil Nadu AAR, in the matter of Suswani Foundations (P.) Ltd., held that as per Section 17(5)(d) the CGST Act, 2017 no Input Tax Credit ITC is available in respect of any goods or services received by the Assessee for construction of immovable property on its own account even if inputs and input services are used in course and furtherance of business.

AARGST Article

Assessee would be considered as electronic commerce operator when digital gold is sold through the platform and sale amount is directly paid through escrow account for which commission is charged

byCA Bimal Jain

The Karnataka, AAR in the case of In Re. M/s. Changejar Technologies Private Limited ruled that the Applicant would be considered as electronic commerce operator and is required to collect tax at source in case where the digital gold is sold through the platform and sale amount is directly paid through escrow account for which commission is charged.

AARGST Article

SEZ units furnishing LUT are not required to pay GST on RCM for services availed from DTA supplier

byCA Bimal Jain

The Gujarat, AAR in the matter of M/s. Waaree Energies Limited held that the SEZ unit are not required to pay GST under RCM on any service received from suppliers located in the DTA for carrying out the authorized operation in the SEZ unit, provided that a LUT or bond as a deemed supplier of such services is furnished as mentioned in Notification 37/2017-Central Tax dated October 04, 2017.

AARGST Article

GST not payable on amount recovered from permanent employees for canteen facility provided by employer

byCA Bimal Jain

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.