Advance Ruling under GST refers to a decision provided by the authority or the appellate authority to an applicant on matters or on questions specified in sub-section (2) of section 97 or sub-section (1) of section 100 in relation to the supply of goods or services or both being undertaken or proposed to be undertaken by the applicant.
Mentioned below are the top 11 ‘Advance Rulings’ authorized in the month of February 2019.
1. The Scenario/Question:
Whether ITC is admissible on the purchase of an ambulance in November 2018 for the benefit of the employees under the legal requirements of the Factories Act, 1948
Input tax credit is not admissible on the ambulance purchased in November 2018, as Section 17(5) of the GST Act, as it stood in the relevant period, blocks any such enjoyment, even if provisioning of ambulance service to the employees is obligatory under the Factories Act, 1948.
2. The Scenario/Question:
Whether lodging along with food to the students by a private boarding house is a composite supply and eligible for exemption under Sl No. 14 of Notification No. 12/2017-CT(Rate) dated 28/06/2017.
The Applicant is offering several individual services in two different combinations to the recipients, depending upon their need for lodging facility. None of the combinations of services being offered is a composite supply, as defined under section 2(30) of the GST Act. They are mixed supplies within the meaning of section 2(74) and taxable in accordance with section 8(b) of the GST Act. Being mixed supply, the value of the entire combination of services offered is taxable at the applicable rate.
3. The Scenario/Question:
Classification and rate of tax for polypropylene non-woven bags (both with & without Handle)
- Laminated P.P. Nonwoven Fabric;
- O.P.P. Pasted P.P. Nonwoven Fabric;
- Woven Fabric Pasted with Nonwoven Fabric.
- Bags/Sacks (both with & without Handle) made of Laminated P.P. Nonwoven Fabric is classifiable under Sub-Heading 39232990,
- Bags/Sacks (both with & without Handle) made of B.O.P.P. Pasted P.P. Nonwoven Fabric is classifiable under Sub-Heading 39232990, and
- Bags/Sacks (both with & without Handle) made of Woven Fabric Pasted with Nonwoven Fabric have to be classified as per the General Rules for the Interpretation of the First Schedule of the Customs
4. The Scenario/Question:
Whether ITC is admissible on the construction of a warehouse, using pre-fabricated technology
The warehouse being constructed is immovable property. The input tax credit is, therefore, not admissible on the inward supplies for construction of the said warehouse, as the credit of such tax is blocked under section 17(5)(d) of the GST Act.
5. The Scenario/Question:
Classification and Rate of Applicable GST on various equipment manufactured for being used exclusively in various Tanks.
The Various ‘Sight Vision Equipment’ manufactured and repaired by the applicant for further exclusive use in armoured tanks will be classified under HSN code 9013 of the GST Tariff Act and accordingly, as per chapter sub-heading 90131090, supply of these various equipment will attract GST at the rate of 18% [9% CGST+ 9% SGST].
6. The Scenario/Question:
Recommendation on the HSN code and applicable tax rate to be used under GST for the AMI (said product).
The products i.e. Anaerobic Microbial Inoculums (AMI) will be classified under chapter subheading 31010099 pf the heading 3101 of the GST Tariff and accordingly, the supply of these products will attract GST @ 5% (2.5% CGST + 2.5% SGST 2.05%) as on date.
7. The Scenario/Question:
- When the Applicant is operating under the Margin Scheme notified under Rule 32(5) of the Central Goods and Service Tax Rules, 2017 (“CGST Rules, 2017”) by selling the used lead-acid batteries to other manufacturers whether such used lead-acid batteries qualify as ‘second-hand goods’ and thus covered under the Margin Scheme notified under Rule 32(5) of the CGST Rules, 2017?
- When the Applicant is selling goods under the Margin Scheme notified under Rule 32(5) of the Central Goods and Service Tax Rules, 2017. The Tax on Outward Supply under the Margin Scheme would be qualified under which of the following heading in GSTR-3B in the following cases:-
- When the Applicant is selling the goods within the state?
- When the Applicant is selling the goods outside the state?
- When the Applicant is operating under the Margin Scheme notified under Rule 32(5) of the Central Goods and Service Tax Rules, 2017 (“CGST Rules, 2017”) by selling the used lead-acid batteries to manufacturers whether the goods when sold outside the state or when sold within the state of Rajasthan qualifies under the Margin Scheme.
- The used lead-acid batteries qualify to be second-hand Accordingly, the applicant dealer is entitled to operate under the Margin Scheme in respect of used lead-acid batteries.
- The Query raised by the applicant is not specified in Section 97(2) of the CGST Act/ RGST Act, 2017, therefore no advance ruling is given.
- The Rule 32(5) of the CGST Rules, 2017, which provides for Margin Scheme in case of intra-state supplies. The Applicant is entitled to make inter-state supplies of used lead-acid batteries while operating under the Margin Scheme.
8. The Scenario/Question:
- Whether said service can be classified under 9973 specifically under 997337 as Licensing services for the right to use minerals including its exploration and evaluation or as any other service?
- What is the GST rate applicable on given services provided by the State of Rajasthan to M/s Aravali Polyart Private Limited for which royalty is being paid?
- The activity undertaken by the applicant is classifiable under heading 9973 (Leasing or Rental Services, with or without operator), as mentioned in the annexure at serial no. 257 (Licensing services for the right to use minerals including its exploration and evaluation) sub-heading 997337 of notification number 11/ 2017 – CT (Rate) dated 28/06/2017 (as amended from time to time) of the CGST Act, 2017.
- The activity undertaken by the applicant attracts 18% GST (9% CGST + 9% SGST).
Applicability of notification issued under the provisions of GST Act, and Determination of the liability to pay tax on any goods or services or both.
- Whether the Notification No. 51/1996-Customs, Dt: 23/07/1996 read with Notification No. 43/2017-Customs, Dt 30/06/2017 and Minutes of the 14th GST Council Decision Dt: 18th/19th May 2017, is applicable for specific imported equipment delivered to the eligible institutions and the applicant is not liable to pay the IGST charged on such imported equipment by the OEM supplier of imported equipment.
- Whether the decision of the GST Council granting the exemption is binding on the Department in the absence of non-issuance of corresponding Notification by the Central/State Government to give effect to such decision of the council.
- Whether the concessional rate of GST/IGST at the 5% vide Notification No. 45-CGST (Rate), DT: 14/11/2017 and Notification No. 47-IGST(Rate), DT:14/11/2017 are applicable only for supply of specified Indigenous Equipment to the eligible Institutions fulfilling the conditions as specified under Column-(4) of the said notification with effect from 15/11/2017.
- Notification No. 51/1996-Customs, dated 23/07/1996 read with Notification No. 43/2017-Customs, Dt 30/06/2017 and Minutes of the 14th GST Council Decision Dt: 18th/19th May 2017, is applicable to the Applicant for import of specified Equipment as listed under column (3) of the aforesaid notification and the said notification are not applicable to the OEM suppliers of imported equipment.
- The scope of issuing a ruling u/s 98 of the OGST/CGST Act is limited to the extent prescribed in sub-section (2) of Section 97 of the OGST/CGST Act. A ruling on whether the decision of the GST Council granting the exemption is binding in the Department in the absence of non-issuance of corresponding Notification by the Central/State Government is not within the competence and mandate of the Authority of Advance Ruling constituted u/s 96 of the OGST Act.
- Concessional rate of CGST/IGST at 5% vide Notification No. 4545-CGST (Rate), DT: 14/11/2017 and Notification No. 47-IGST(Rate), DT:14/11/2017 is applicable to the goods mentioned at Para 6.3.0 as above whether imported or indigenous.
Classification of Gudkhu under the GST Act, 2017.
‘Gudakhu’ manufactured by the Applicant, be classified under GST tariff heading ‘2403 99 90’.
Classification of the product ‘transport tank mounted on chassis of the customer’.
The product ‘Transport Tank mounted on chassis of the customer’ being supplied is classifiable under Heading 7311.
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