Monthly Digest Of Tax Cases: May 2022

Indirect Taxes Supreme Court GST Council Recommendations Not Binding On Centre & States; Both Parliament & State Legislatures Can Legislate On GST : Supreme Court Case Title : Union of India and Anr versus M/s Mohit Minerals Through Director Citation : 2022 LiveLaw (SC) 500 In a significant verdict, the Supreme Court held that the recommendations of the GST council...

Schools Not Entitled To Pay GST On Canteen And Transportation Services: AAR

The Maharashtra Authority of Advance Ruling (AAR) consisting of Rajiv Magoo and T.R. Ramnani has ruled that the schools are not liable to pay GST on the canteen and the transportation services that are furnished by schools. The applicant, Rahul Ramchandran, has a new business under the trade name "Nashik Cambridge Pre-school". The applicant intends to supply certain services...

GST Payable On Value Of Supply Which Includes Interest For Delayed Payment: AAR

The Telangana Authority of Advance Ruling (AAR) bench of members S.V. Kasi Visweswara Rao and B. Raghu Kiranhas ruled that the Goods and Service Tax is payable on the value of supply, which includes interest, late fee, or penalty for delayed payment.The applicant, M/s.Hyderabad Metropolitan Water Supply and Sewerage Board, is a local authority which has been making payments...

'Ready to Eat' Popcorn Sold In Retail Packages Attracts 18% GST: AAR

The Telangana Authority of Advance Ruling, consisting of members B. Raghu Kiran and S.V. Kasi Visweswara Rao, has ruled that 18% GST is payable on 'ready to eat' popcorn sold in retail packages.The applicant, M/s. Agro Tech Foods Limited, is in the business of selling, among other commodities, Ready to Eat (RTE) popcorn. The popcorn is usually flavoured with salt, caramel,...

Transportation Of Parcels By GSRTC In Its Buses Attracts 18% GST: AAR

The Gujarat Authority of Advance Ruling (AAR) consisting of Atul Mehta and Arun Richard has ruled that 18% GST is payable on the transportation of parcels by the Gujarat State Road Transport Corporation (GSRTC) in its buses.GSRTC operates more than 8,700 buses daily and is engaged in intra state as well as interstate passenger transportation. It is mainly engaged in...

Payment Of Equated Yearly Instalments And Interest On Delayed Payment Is Exigible To GST: Telangana AAR

The Telangana Bench of Authority for Advance Ruling, consisting of members B. Raghu Kiran and S.V. Kasi Visweswara Rao, has ruled that payment of Equated Yearly Instalments made under Annuities Model, including interest on delayed payments made to a contractor, is exigible to GST. The Applicant M/s. Hyderabad Metropolitan Water Supply and Sewerage Board filed an application before...

18% GST Payable On Supply Of Functional Cattle Feed Plant, Inclusive Of Erection, Installation, Commissioning: AAR

The Gujarat Authority of Advance Ruling (AAR) has ruled that the 18% GST is applicable on supply of a functional Cattle Feed Plant, inclusive of its Erection, Installation and Commissioning and related works.The two-member bench of Atul Mehta and Arun Richard observed that the Cattle Feed Plant once installed and commissioned in the premises is transferred to the customer, it...

Rent Free Accomodation Provided By Partner To Partnership Firm Is Exigible To GST: Tamil Nadu AAR

The Tamil Nadu Bench of the Authority for Advance Ruling, consisting of members T.G. Venkatesh and K. Latha, has ruled that GST is liable to be paid in respect of properties of a Partner rented to a partnership firm, even if it is free of rent, to carry out the business of the firm, since the activity is in furtherance of business and amounts to supply under Section 7 read with Schedule 1...

Membership Fee Collected By Club Exigible To GST: AAR Maharashtra

The Maharashtra Bench of the Authority for Advance Ruling (AAR), consisting of members Rajiv Magoo and T.R. Ramnani, has ruled that the membership fee and annual subscription fee collected by a Club from its members is exigible to GST under the Central Goods and Service Tax (CGST) Act and the State Goods and Service Tax (SGST) Act. The Applicant Poona Club Ltd had filed...

Distillery Wet/Dry Grain Soluble Sold As Cattle Feed Attracts 5% GST: AAR

The Telangana Authority of Advance Ruling (AAR) consisting of Raghu Kiran (Central Tax) and S.V. Kasi Visweswara Rao (State Tax) has ruled that 5% Goods and Service Tax (GST) is payable on distillery wet/dry grain soluble which is sold as cattle feed. The applicant is in the business of manufacturing alcohol. In the process of manufacturing alcohol, the applicant produces certain...

Coating Activities On goods Belonging To Customer Is Job work, Attracts 12% GST: AAR

The Maharashtra Authority of Advance Ruling (AAR) consisting of Rajiv Magoo and T.R. Ramnani has ruled that coating activities on goods belonging to customers qualify as job work and attract 12% GST. The applicant, a company, is in the business of coating activities, which are mainly applied to goods belonging to customers and provide high-performance Physical Vapour Deposition (PVD)...

Poultry Crates Attracts 18% GST: AAR

The Maharashtra Authority of Advance Ruling (AAR) consisting of Rajiv Mangoo and T.R. Ramnani has ruled that Goods and Service Tax (GST) at the rate of 18% is applicable on poultry crates, which can be treated as "articles for the conveyance or packing of goods, or plastics".The applicant is in the business of manufacturing a wide range of products used for storage,...