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 August 5 to 11, 2023.
The Kerala Authority for Advance Ruling (AAR), Thiruvananthapuram has held that the product of Dhathri Ayurveda Private Limited called “Dhathri Dahasamani”, which is used as a flavour and taste component in drinking water, shall be classified as Mixed Condiments and Mixed Seasonings under the Heading 2103 90 40 of the First Schedule to the Customs Tariff Act, 1975, attracting Goods and Services Tax (GST) at the rate of 12%.
The authority comprising of Dr. S.L. Sreeparvathy, IRS, Additional Commissioner Central Tax and Shri Abraham Renn S, IRS Additional Commissioner State Tax clarified that the product is not capable of being consumed as a food item on its own and is mainly used for flavouring or enhancing the taste of water. Thus, it is correctly classified under Heading 2103 90 40 – Mixed condiments and mixed seasoning. The ruling also clarified the applicable tax rate for the product, which is 12% (6% CGST + 6% SGST) as per Entry at SI. No. 44 of Schedule II of Notification No. 01/2017 – Central Tax (Rate) dated 28.06.2017. This ruling emphasised the classification of goods based on their essential character, functional utility and primary usage providing clarity regarding the proper classification and tax treatment of other similar ayurvedic and herbal products in the industry.
The Kerala Authority for Advance Ruling (KAAR) construction of a jetty for the Indian Coast Guard (ICG) as per MoU falls under a ‘work contract’ as per the Central Goods and Service Tax Act, 2017.
The Authority comprising of Dr.S.L. Sreeparvathy, IRS &Shri.Abraham Renn S, IRS held that the activity undertaken by the applicant for the Construction of a Jetty for ICG as per MoU dated 03.04.2017 squarely falls within the ambit of the “Works Contract” as defined in Section 2 (1 19) of the CC-ST Act, 2017. The service provided by the applicant to the ICG as per MoU dated 03.04.2017 is not eligible for exemption under the entry at Sl. No. 9C of Notification No. 12/2017 CT (Rate) dated 28.06.2017 as inserted by Notification No. 32/2017 CT (Rate) dated 13.10.2017.
The Kerala Authority for Advance Ruling (KAAR) has held that Kerala State Electricity Board Ltd. (KSEBL) is eligible for direct Input Credit on Deposit Work.
The Authority comprising of Dr.S.L. Sreeparvathy, IRS &Shri. Abraham Renn S, IRS held that the applicant is liable to pay GST as the recipient of services in respect of the services of renting any motor vehicle designed to carry passengers received from any person other than a body corporate, irrespective of the status of registration of the supplier as per entry at SI. No. 15 of Notification No. 13/2017 CT (Rate) dated 28.06.2017 as amended.
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