Tag: Gujarat AAR

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.

AARGST Article

No Supply on Salary deductions for Canteen Services & ITC available if Obligatory

byCA Bimal Jain

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.

AARGST Article

Salary Deductions for Canteen Services Not Considered Supply of Service though ITC is available as canteen services provided are obligatory in nature

byCA Bimal Jain

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.

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.