This round-up analytically summarises the key stories related to the Goods and Services Tax Authority for Advance Ruling ( AAR ) and Appellate Authority for Advance Ruling ( AAAR ) reported at Taxscan.in during the period from August 10, 2024 to September 6, 2024.
The Maharashtra Authority for Advance Ruling (AAR) in a recent order has held that an 18% Goods and Service Tax (GST) is to be levied on the work that has been completed as a part of the Jal Jeevan Mission carried out by the Government of India (GoI) performed after the year 2022 as a part of the Jal Jeevan Mission.
The bench observed that from the agreement between the applicant and MJP, the applicant has provided technical consultancy for project development and management support services for the water supply scheme at various locations implemented by the MJP for the supply of water, which are the functions stated in articles 243G and 243W.
The Maharashtra Authority for Advance Ruling ( AAR) has ruled that no Input Tax Credit ( ITC ) can be claimed for goods and services used in electricity generation due to the GST exemption on the supply of electricity. In the case of AES Engineering Solar Private Limited, the AAR examined the applicability of GST on the intra-state and inter-state supply of electrical energy. The applicant sought clarification on whether GST was payable on the delivery of electrical energy based on their existing agreement.
Additionally, the applicant inquired about the eligibility to claim and utilize input tax credit ( ITC ) for the CGST and SGST paid on the procurement of the solar power plant used for generating electricity. A two-member bench of the AAR, comprising Ajay Kumar V. Bonde and Priya Jadhav, ruled that since the supply of electricity is exempt from GST, the applicant is not entitled to claim ITC on their inward supplies of goods, services, or capital goods used in generating electricity.
The West Bengal Bench of Authority for Advance Ruling ( AAR ) held that GST cannot be levied on Comprehensive Water Supply Planning Services.
The bench observed that while referring to the 11th and 12th Schedule of the Indian Constitution, the functions entrusted to a panchayat or municipality include functions like drinking water or water supply for domestic, industrial, and commercial purposes.
The Odisha Authority for Advance Ruling ( AAR ) in a recent Application before it ruled that mere handover of building and civil structure by one party to another does not indicate sale, but rather a ‘Supply of Service’ to refrain from removing the erected structure which is liable to be taxed at 18% as per Government Notification.
In light of the observations, the Odisha AAR ruled that the New Deed executed between Essel Mining and OMCL only constitutes “handing over of property” and encompasses ‘a promise made by Essel Mining to OMCL to refrain from removing the buildings/structures and railway sidings erected on the land leased out by the Odisha Government, in exchange for a monetary consideration, which in ordinary circumstances should have been dismantled by the Applicant’ upon termination of the initial Lease Deed on 31.03.2020.
The West Bengal Bench of Authority for Advance Ruling (AAR) ruled that the contract bridge tournaments conducted in offline mode are not subject to tax as the applicant is not a supplier of Specified Actionable Claims u/s 2(102 A) of the Goods and Services Tax Act, 2017.
The bench observed that the expression ‘specified actionable claim’ under Section 2 (102A) of the GST Act, 2017 covers betting, casinos, gambling, horse racing, lottery, or online money gaming. The bench was of the view that “Bridge” is not classified as a casino, horse racing, lottery, or internet money game, whether played in a physical or offline format.
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