This round-up analytically summarises the key stories related to the Goods and Service Tax, Authority for Advance Ruling (AAR) and Appellate Authority for Advance Ruling (AAAR) reported at Taxscan.in during July 29 to August 4, 2023.
The Authority for Advance Ruling (AAR), Karnataka has held that the activity of charging electric batteries for Electric Vehicles (EVs) is considered a “supply of service”, attracting an 18% Goods and Services Tax (GST) rate.
The authority comprising Dr. M P Ravi Prasad (SGST Member) and Sri. Kiran Reddy T (CGST Member) ruled that the entire activity of charging EV batteries falls under the category of “supply of service” and should be classified under SAC 998714, which covers Maintenance and Repair of Transport Machinery and Equipment, including electrical system repair and battery charging services for motor cars. The AAR also addressed the issue of input tax credit (ITC). According to the ruling, the GST collected on the service provided can be set off against the ITC received by the applicant company on its inputs and input services, as per the provisions of Sections 16 and 17 of the CGST Act 2017 read with Rules 42 and 43 of the CGST Rules, 2017.
The Telangana Advance Ruling Authority (AAR) has ruled that car dealers are not eligible for Input Tax Credit (ITC) in respect of the inward supply of demo vehicles.
A two-member coram comprising Sri S.V. Kasi Visweswara Rao, Additional Commissioner (State Tax) and Sri Sahil Inamdar, Additional Commissioner IRS (Central Tax) has held that “If the applicant is making further supply of such vehicle is eligible for the ITC claimed. “Further ruled that “if the applicant is retaining the vehicle for his workshop as replacement vehicle as mentioned in the sales policy of MSIL, he shall not be eligible for ITC as there is no further supply at his hands. Therefore, the ITC claimed by him has to be repaid in cash in view of the amended section 16(4) notified vide notification No. 18/2022, Central Tax dt.28.09.2022 w.e.f: 01.10.2022.”
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