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 21, 2024 to October 7, 2024.
The Andhra Pradesh Authority for Advance Ruling ( AAR ) recently ruled that certain specific inputs including equipment, material, consumables, tools etc. (Inputs) purchased domestically or imported by the Applicant for the construction of ships or vessels shall be liable to 5% Goods and Services Tax ( GST ).
The two-member Bench of the Andhra Pradesh Authority for Advance Ruling comprising K.Ravi Sankar, Commissioner of State Tax (Member) and B. Lakshmi Narayana, IRS, Joint Commissioner of Central Tax (Member) observed that “It is clear the goods which answer the specific requirements of being part for the classified headings 8901, 8902, 8904, 8905, 8906, and 8907 will be chargeable @5%( SGST 2.5% and CGST 2.5%) rate of GST as per Sl.No.252 of Schedule-I of Notification No.01/2017-Central Tax (Rate) dated 28.06.2017.”
The Tamilnadu Authority for Advance Ruling (AAR) ruled that Input Tax Credit shall be available on the services of Leasing/Renting/Hiring of Motor Vehicles, when engaged by a Company specifically for the transportation of women employees working a night-shift between 8:00 P.M. and 6:00 A.M at the company’s work premises.
Considering the submissions made by the Applicant, the two-member bench of AAR, Tamil Nadu composed by D. Jayapriya, I.R.S, Member (CGST) and A. Valli, M.Sc, Member (SGST) observed that the provisions of Section 17(5) of the CGST Act does not prima facie permit the availing Input Tax Credit on the Leasing/Renting/Hiring of Motor Vehicles as the same falls under the category of blocked credit.
In a recent application before the Tamil Nadu bench of Authority for Advance Ruling ( AAR ) it was ruled that Plastic Rope Handle, Vent Plug, Split Top/Bottom Support classified under the heading “8507” shall be taxed at a rate of GST amounting to 28%.
In this case the quasi judicial body comprising D. Jayapriya and A. Valli observed that the impugned articles are all made of plastic, however as they are used as parts of electric accumulators they should be classified under the heading “8507”.
In a recent ruling of Application for Advance ( AAR) ruling it was decided that Adjudication and Advance Ruling should be treated Independent of Each Other.
The quasi judicial body comprising Ashish Varma and D Jagannathan observed that advanced ruling are independent fro adjudication in nature. The advance rulings provide clarity while adjudication is the process of assessing tax liabilities. And it was clearly addressed in the case.
The West Bengal Authority for Advance Ruling ( AAR ) held in a recent ruling that the question raised by the Applicant for advance ruling is not encompassed under the ambit of Section 97(2) of the Central Goods and Services Tax Act, 2017 ( CGST Act ) or the West Bengal Goods and Services Tax Act, 2017 ( WBGST Act ) and proceeded to reject the same.
The Authority rejected the query of applicability of any notification issued by the Government under the provisions of the GST Acts citing the lack of scope of Section 97(2) of the GST Acts to accommodate the Applicant’s query.
In a recent ruling before Authority for Advance Ruling ( AAR ) the application for rectification of Mitsubishi Electric India Pvt. Ltd. was rejected due to lack of apparent error in advance ruling.
The quasi judicial body comprising Smt. D. Jayapriya and Smt.A. Valli observed that no error was apparent on the face of advance ruling as alleged by the applicant. As the mistake pointed out by the applicant was not obvious or self evidenced, it wasn’tṣ be held to be a mistake apparent from the record.
The West Bengal Authority for Advance Ruling ( AAR ) recently ruled that Interest Charges levied by a financing bank against loan availed by the Applicant can be treated as an ‘Inward Supply’ while computing the 80% threshold limit for supplies to be received from registered suppliers.
The two-member Bench of AAR comprising Dr Tanisha Dutta, Joint Commissioner, CGST & CX Joyjit Banik, Additional Commissioner, SGST considering the submissions on record observed that total value of inward supplies eligible to be included as ‘inward supplies’ have been clarified via FAQs (Part II) on real estate issued by the Tax Research Unit, Department of Revenue, ministry of Finance on 14.05.2019
The West Bengal Authority for Advance Ruling (AAR) recently ruled that old/ second hand gold or diamond jewellery procured from individuals and later supplied back to the same person after alterations would attract a Goods and Services Tax at the rate of 5%.
The two-member Bench of AAR comprising Dr. Tanisha Dutta, Joint Commissioner, CGST & CX and Joyjit Banik, Additional Commissioner, SGST after considering the submissions made by the Applicant ruled that the Applicant is permitted to avail the valuation method as per Rule 32(5) of the Central Goods and Service Tax Rules, 2017 in cases where the pre-owned gold/diamond jewellery procured by the Applicant does not change the base nature of the ornament after minor processing.
The West Bengal Authority for Advance Ruling ( AAR ) in a recent matter before it ruled that the Residential Welfare Association ( RWA ) functioning within an Apartment facility shall not be liable to pay Goods and Service Tax ( GST ) when the membership fees levied on their members are below Rs.7,500/- per month
AAR laid reference to Circular No. 109/28/2019- GST dated 22.07.2019 issued by the Tax Research Unit, Department of Revenue, Ministry of Finance wherein it was clarified that the GST exemption as per Notification No.12/2017-CT(R) is entirely member-specific meaning that if one member pays charges less than Rs.7,500/- per month, then that payment may be exempt from GST.
The Tamilnadu State Appellate Authority for Advance Ruling ( AAAR ) held in a recent ruling that amount recovered by an Employer from their Employee in lieu of Equated Monthly Installment ( EMI ) for car-lease facility provided by the Company is not a ‘perquisite’, and is liable to Goods and Services Tax ( GST ).
In light of the material on record and observations made, AAAR provided clarification on the Order passed by the AAR and rules that only the actual value in monetary terms extended to the Employee concerned in the course of employment shall qualify as a ‘perquisite’ and that the car lease amount recovered in ‘actual terms’ by the Employee is not a perquisite, thus being subject to GST.
The Tamilnadu State Appellate Authority for Advance Ruling ( AAAR ) ruled that no Input Tax Credit ( ITC ) can be availed on the purchase of Rotary Car Parking System installed and commissioned at the premises of the Applicant, with the same being ineligible as per the Section 17(5)(d) of the Central Goods and Services Tax Act, 2017 (CGST Act).
In light of the observations, AAAR determined that the RPS is not a ‘Plant or Machinery’ classifiable under Section 17(5) of the CGST Act, but rather a ‘Civil Structure’. AAAR further sought to conduct the ‘test of permanency’ to determine whether the RPS is a permanent structure or not.
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