Tag: AAR

ArticleGST Article

ITC admissible for capital goods and related services used to lay electricity transmission infrastructure outside the factory

byCA Bimal Jain

The Gujarat AAR in the matter of Alleima India Pvt Ltd [Advance Ruling No. GUJ/GAAR/R/2025/44 GST, order dated October 16, 2025] held that input tax credit (ITC) is available on capital goods and related services used for laying underground cables and transmission equipment from the DISCOM substation to the factory premises, even if installed outside the factory premises, subject to the conditions in Section 16 and exceptions in Section 17(5) of the CGST Act.

ArticleGST Article

Invoice value applies for supply to related persons eligible for ITC

byCA Bimal Jain

The Andhra Pradesh AAR in the matter of Sri Lakshmi Ganesh Cement and Iron General Stores held that for supply of cement and iron to unrelated persons, the transaction value as per Section 15(1) of the CGST Act, 2017 applies; for supplies to related persons eligible for full input tax credit, the invoice value is deemed value of supply under Rule 28 of the CGST Rules, 2017; further, the registered person providing transportation services to unregistered persons is not liable to pay GST on the transportation charges, as such services are exempt under Serial No. 21A of Notification No. 12/2017-CT (Rate), as amended.

ArticleGST Article

Transfer of Specific Unit as a Going Concern via Slump Sale is Exempt Under GST

byCA Bimal Jain

The Gujarat AAR in the matter of RDB Realty & Infrastructure Limited held that the supply made as a going concern by way of slump sale is classified under SAC 997119 and is exempt under Notification No. 12/2017-CT (Rate). The Authority refrained from answering whether the sale is classified as “Slump Sale” as the term is not defined under GST but recognized the transaction as a transfer of business with GST implications.

ArticleGST Article

No Legal Restriction on Inter-State Transfer of CGST/ IGST Input Tax Credit on Merger of companies

byCA Bimal Jain

The Kerala AAR in the matter of Flytxt Mobile Solutions Private Limited held that the applicant is eligible to transfer the closing balance of CGST and IGST appearing in the electronic credit ledger of the Haryana GSTIN of a merged company to the Kerala GSTIN of the transferor company on merger, despite the GST portal’s technical restrictions rejecting inter-state transfers.