Classification and Taxation of Referral Services to Foreign Universities: A Case Study under GST
Applicant’s services of referral to Foreign Universities qualify as an “export of service”
Tag: AAR
Recipient can claim ITC on exempt services where supplier has charged GST
The Odisha AAR, In Re: EFC logistics India (P.) Ltd., held that the assessee can claim ITC on exempt services if supplier has charged GST, subject to fulfilling the conditions and restrictions specified in Section 16 of the CGST Act.
GST is not applicable on services of design engineering and contraction of water tanks by the Government Authority
The Uttarakhand AAR, in the case of M/s. THDC India Limited, held that there is no applicability of the RCM as per the provisions of the Notification No. 13/2017-Central Tax (Rate) dated June 28, 2017, as the supplier of services is not a “Local Authority”. Also, the services provided under the referred MOU i.e. design engineering and contraction of the water tank by the Government Authority are exempt in view of the provisions of the Notification No. 12/2017-Central Tax (Rate), dated June 28, 2017, as amended, as the supplier of services falls under the category of a “Governmental Authority”. In the instant case, the applicant being a receiver of services, there was no applicability of GST under Forward Charge.
A very significant Customs AAR ruling
A very significant Customs AAR ruling delivered recently observed the following:
Salary Deductions for Canteen Services Not Considered Supply of Service though ITC is available as canteen services provided are obligatory in nature
The AAR, Gujarat in the case of M/s. Dormer Tools India Pvt Ltd ruled that the nominal amount deducted by the Applicant from employee salary would not be considered as supply of services . The AAR, Gujarat further ruled that ITC would be available to the Appellant as per proviso to Section 17(5)(b) of the CGST Act, wherein the canteen service provided by the Applicant is obligatory in nature.
Whether ITC is permissible when the payment is settled through book adjustment?
The West Bengal, AAR in the case of Paragon Polymer Products (P.) Ltd., held that the claim of input tax credit by the taxpayer cannot be denied u/s 16(2 of the CGST Act, 2017 when payment is settled through book adjustments because the law has not put any restriction on such adjustments.
Imported Goods stored in 3P FTWZ being sold and moved to Bonded Warehouse on ‘as is where is’ basis under MOOWR scheme are not liable to GST
The Tamil Nadu AAR, in the matter of M/s. Sunwoda Electronic India Private Limited has held that sale of goods from third-party free trade warehousing zone (“3P FTWZ”) on ‘as is where is’ basis to bonded warehouse under Manufacturing and Other Operations in Warehouse Regulations (“MOOWR”) are not liable to GST as the same is covered under Clause 8(a) of Schedule III of the CGST Act, which reads as “Supply of warehoused goods to any person before clearance for home consumption”.
5% GST applies on mix mukhwas, rules AAR
AAR in the case of Bhagat Dhanadal Corporation has ruled that 5% GST is payable on seed mixes manufactured and sold by it. The products manufactured by it are ‘Mix Mukhwas’ and ‘Roasted Til with Ajwain’.
Infant milk formula attracts GST at 18% rules AAR
The GST Authority for Advance Rulings (Rajasthan bench) has held that Bebymil was correctly levying and collecting Goods and Services Tax (GST) at 18% against its infant milk formula products.
ITC not admissible in case of Rotary Car Parking System
The AAR, Tamil Nadu in the case of In Re. M/s. A Senthil Maharaj ruled that, the ITC is not admissible in case of the Rotary Car Parking System as the said system is permanently fastened and is installed for the purpose of permanent enjoyment.