Softy ice cream mix not dairy produce, attracts 18% GST, rules AAR
Softy ice cream mix in vanilla flavour is not a dairy product and will attract 18 per cent GST, Rajasthan bench of Authority of Advance Ruling has said.
Tag: AAR
Assessee can avail ITC only on tax paid on services for leasing/ renting/ hiring of motor vehicles for women’s safety
The AAR, Tamil Nadu in the case of M/s. CMA CGM Global Business Services (India) (P.) Ltd., ruled that an Assessee is eligible to avail input services in respect of leasing/ renting/ hiring of motor vehicles to provide transportation facility to ensure safety and security of women employees as per Tamil Nadu Shops and Establishments Act, 1947 subject to satisfying and fulfilling the eligibility and conditions provided under Section 16 of Central Goods and Services Tax Act, 2017 (“the CGST Act”). Further, ITC shall be available to the Assessee only on the tax paid on services or renting, leasing or hiring of motor vehicles for providing transport facilities to women employees alone who are arriving or leaving workplace between 8 pm to 6 pm. Lastly, ITC on the same shall be available to the Assessee from May 28, 2019 onwards only on satisfying and fulfilling the eligibility provided under Section 16 of the CGST Act.
GST on Corporate-Guarantee from overseas group entity payable only one-time, not periodically: Rajasthan’s AAR
Goods & Services Tax (GST) on corporate-guarantee from overseas group entity payable only one-time, not periodically, Rajasthan’s Authority for Advance Ruling (RAAR) has held. Experts say though the ruling is in line with the Circular, it poses the challenge of paying the full tax upfront for the entire duration of the guarantee.
No GST payable on supply of electricity
The AAR, Maharashtra in the case of In Re: AES Engineering Solar (P.) Ltd. ruled that the supply of electrical energy by the AES Engineering was exempt from levy of GST as per Entry No. 104
Exemption is not available when the maintenance charges exceed Rs. 7,500/- per month per member
The Authority for Advance Ruling, West Bengal in the case of Prinsep Association of Apartment Owners, In re [Order No. 22/WBAAR/2023-24 dated November 29, 2023] ruled that the exemption is not available when the maintenance charges exceed Rs. 7,500/-per month…
Vouchers are Taxable as a Supply of Goods at the rate of 18%
The Authority for Advance Ruling, Uttar Pradesh, in case of M/s Payline Technology Private Limited, ruled that Supply of Vouchers by the Applicant is taxable as supply of goods and the time of supply shall be decided as per Section 12 (2) of the CGST Act and the UPGST Act and will be taxed at 18% as per residual entry no. 453 of Notification No. 01/2017-Central Tax (Rate) dated June 28, 2017.
No Supply on Salary deductions for Canteen Services & ITC available if Obligatory
The Gujarat AAR, in the case of M/s Allemia India Private Limited, ruled that the deduction made by the Applicant from employees’ salaries for food provided at the factory premises does not qualify as a “supply” under Section 7 of the CGST Act and the GGST Act. Further, the Applicant is entitled to ITC on GST charged by the canteen service provider (“CSP”), in accordance with Section 17(5)(b) (amended from February 1, 2019) and CBIC Circular No. 172/04/2022-GST dated July 6, 2022, read with Section 46 of the Factories Act, 1948 and Gujarat Factories Rules, 1963. However, ITC is restricted to the cost borne by the Applicant, excluding the proportionate credit embedded in amounts recovered from employees.
GST is applicable on the increased rents for past periods
AAR Tamil Nadu, in the case of M/s. Metropolitan Transport Corporation, ruled that in pursuance of a contract entered into prior to appointed day, if, price of any goods or services or both is revised upwards on or after appointed day, then, in case of such upward price revision, a registered person will issue a supplementary invoice or debit notes within 30 days from date of revision and such revision shall be treated as ‘supply’ under the CGST Act Act. Hence, GST is payable.
Benefit of refund cannot be claimed under Inverted Duty Structure relating to manufacturing of non-edible neem oil
The AAR, Uttar Pradesh in the case of In Re. M/s Pooja Solvent Private Limited ruled that non-edible neem oil would be classifiable under HSN Code 1515 and the provisions of Notification No. 09/2022-Central Tax (Rate) dated July 13, 2022 would be applicable and therefore, the benefit of refund cannot be claimed under Inverted Duty Structure relating to manufacturing of non-edible neem oil.
Registered Person eligible to avail ITC on capital goods used in installation of electricity line for receiving supply of electricity whose ownership would be transferred to electricity distributor
The AAR, Gujarat in the case of M/s Elixir Industries (P.) Ltd. [Advance Ruling No. Guj/Gaar/R/2024/18 Dated July 02, 2024] ruled that registered person is eligible to avail Input Tax Credit (“ITC”) on capital goods i.e. wires and cables used in installation of electricity line for receiving supply of electricity used as input; whose ownership would be transferred to electricity distributor