AAR and AAAR Weekly Round Up

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 September 9, 2024 to September 20, 2024. Intra-State Supply of Treated Water exempt from Service Tax: AAR In Re: M/s Greater Visakhapatnam Smart City Corporation Limited CITATION: 2024 TAXSCAN (AAR) 204 The Andhra Pradesh Authority for Advance Ruling ( AAR ), in a recent ruling clarified that Intra-State supply of treated water is exempt from Goods and Service Tax ( GST ) by Notification. The 2-Member Bench of AAR comprising K. Ravi Sankar, Commissioner of State Tax ( Member ) and B. Lakshmi Narayan, IRS Joint Commissioner of Central Tax ( Member ) observed that the water supplied by GVSCCL is not “purified” water but treated water used exclusively for industrial needs. AAR ruled that the impugned goods,i.e, water supplied by the Applicant to various industries falls under Serial No.99 of Notification No.02/2017-C.T. (R) dated 28.06.2017 Entry 46B of Schedule II of Notification No. 06/2018-C.T. (Rate) dated 25.01.2018, therefore being completely exempt from GST. 18% GST Applicable on Royalty Charges Received by Leaseholders of Mining Quarries: AAR In Re: M/s R.V Minerals CITATION: 2024 TAXSCAN (AAR) 205 The Authority for Advance Ruling ( AAR ), Andhra Pradesh ruled in a recent decision that Royalty Charges collected from the Customers of Mining Quarry Leaseholders are liable to Goods and Services Tax ( GST ) of 18%. The Authority for Advance Ruling, Andhra Pradesh comprising members K. Ravi Sankar, Commissioner of State Tax and B. Lakshmi Narayana, IRS, Joint Commissioner of Central Tax after perusing the material on record expressed that both the levies – GST on supply of Aggregates and GST via Royalty Charges are different and separate and do not fall within the purview of mixed supply or composite supply. Goods/Assets procured by Foreign Company from Liquidating Company not Export or Zero-Rated Supply: AAR In Re: M/s MCM Pacific PTE Ltd CITATION: 2024 TAXSCAN (AAR) 206 The Andhra Pradesh Authority for Advance Ruling ( AAR ) ruled that outward supply of goods or assets procured by a foreign company from a company undergoing liquidation in India cannot be classified as an ‘Export’ or a ‘Zero-Rated Supply’ under Goods and Services Tax ( GST ) Provisions. The two Member Bench of the Andhra Pradesh Authority for Advance Ruling comprising members K. Ravi Sankar, Commissioner of State Tax and B. Lakshmi Narayana, IRS, Joint Commissioner of Central Tax observed that the Sale Process between MCM and Lanco shall conclude in India itself and MCM shall be liable to dismantle and transport the assets to Myanmar; in this effect, neither party can be deemed to be an exporter. Export of Pre-packaged and Labelled Frozen Shrimp packed in Cartons upto 25 Kg attracts 5% GST: AAR In Re: M/s Asvini Fisheries Private Ltd CITATION: 2024 TAXSCAN (AAR) 207 The Andhra Pradesh Authority for Advance Ruling ( AAR ) ruled that the export of pre-packaged and labelled frozen shrimp packed in carton boxes of 25 kilograms or less are subject to Goods and Services Tax ( GST ) at 5%. Considering the submissions made by the Applicant, the AAR observed that the shrimp packages supplied by the Applicant qualify as a ‘pre-packaged and labelled commodity’ according to Section 2(1)(l) of the Legal Metrology Act, 2009 as there is a ‘predetermined quantity’ of shrimp in each primary package. Multiple numbers of such retail labelled primary packages are further packed into the wholesale secondary package. Tender by Navy Admiral Superintendent for "Habitability upgradation works” on board INS Ranveer liable to GST at normal Rates: AAR In Re: M/s Visakha Trades CITATION: 2024 TAXSCAN (AAR) 208 The Andhra Pradesh Authority for Advance Ruling ruled that ‘Habitability Upgradation Works’ conducted on board the Indian Navy’s Rajput-class Destroyer Warship ‘INS Ranveer’ are liable to be taxed at regular Goods and Services Tax (GST) rates. The two-member Coram of the Andhra Pradesh Authority for Advance Ruling constituted by Dr. K.Ravi Sankar, Commissioner of State Tax and B. Lakshmi Narayana, IRS, Joint Commissioner of Central Tax observed that MRO services have not been defined under GST Law or in the Rate Notification and sought to ascertain the same using commonly used dictionary meanings of the same. AAR further observed that MRO services are activities carried out on equipment, Machinery, Engine, Appliance or Vehicle, none of which are applicable in the present case. Natural Fibre Composite Board bonded using PVC Resin attracts 12% GST: AAR In Re: M/s Tra Plast Industries Pvt Ltd., CITATION: 2024 TAXSCAN (AAR) 209 The Andhra Pradesh Authority for Advance Ruling (AAR) recently ruled that Natural Fibre Composite (NFC) Board manufactured using raw materials, and bonded together using Polyvinyl Chloride (PVC) resin as a bonding agent would attract a Goods and Services Tax (GST) of 12% as per its GST classification. The two-member Bench of the Andhra Pradesh Authority for Advance Ruling comprising Dr. K. Ravi Shankar, Commissioner of State Tax and B. Lakshmi Narayana, IRS, Joint Commissioner of Central Tax, after considering the material on record laid reference to Schedule II of the Notification No.01/2017-Central Tax (Rate). Support our journalism by subscribing to Taxscan premium. 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AAR and AAAR Weekly Round Up

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AAR and AAAR Weekly Round Up

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