GST AAR and AAAR Rulings: Annual Digest 2023 [Part 2]

Top Stories GST AAR and AAAR Rulings: Annual Digest 2023 [Part 2] By Aswathi Ashokan M.V – On January 4, 2024 1:30 pm – 17 mins read This yearly digest analyzes all the AAR and AAAR stories published in the year 2023 at taxscan.in Providing Catering Services to Educational Institutions from 1st standard to 2nd PU College exempted from GST:AAR In Re: M/s. Annapoorneshwari Enterprises- 2023 TAXSCAN (AAR) 157

The Bangalore Bench of MP Ravi Prasad and Kiran Reddy Authority for Advance Ruling (AAR) has held that providing catering services to educational institutions from 1st standard to 2nd standard Pre-university college would be exempted from Goods and Services Tax. The Bench determine that that providing catering services to Educational Institutions from 1st standard to 2nd PUC would not be taxable as per entry No.66 of Notification No.12/2017- Central Tax(Rate) dated 28.06.2017 as amended further. Man power service under Department Of Horticulture And Centre Of Excellence attracts 18% GST – In Re: M/s. Sanjeevini Enterprises 2023 TAXSCAN (AAR) 161 Karnataka Authority for Advance Ruling ( AAR ) bench of M.P Ravi Prasad , and Kiran Reddy.T held that Man power service under the Department of Horticulture and Centre of Excellence attracts 18% Goods and Service Tax. The bench observed that “tissue culture is not same as agriculture and there is no direct nexus to the item mentioned in eleventh or twelfth schedule of the constitution .

Thus supply of manpower of tissue culture production and for handling the process on research on flowers planting and growing to horticulture department government of Karnataka not provided by way of any activity in relation to any function entrusted to Panchayath under article 243G of the constitution. GST ITC allowable in respect of Fresh and Semi Processed Meat Products: AAR-In Re: M/s. Meat Mart Unit of the New Bangalore Ham Shop- 2023 TAXSCAN (AAR) 160 The Authority for Advance Ruling (AAR), Karnataka, held that ITC is allowable in respect of fresh and semi processed meat products. AAR Panel consisting of Dr. M.P Ravi Prasad,

The Additional Commissioner of Commercial Taxes, along with Sri Kiran Reddy T, The Additional Commissioner of Customs and Indirect Taxes, held: “Input Tax Credit has to be availed in terms of section 16 and 17 of CGST Act 2017 read with Rule 42 of the CGST Rules 2017 No GST Exemption available to Grains not Qualify to be Seed: AAAR In Re: M/s. Narsimha Reddy & Sons- 2023 TAXSCAN (AAAR) 107 Telangana Appellate Authority for Advance Ruling (AAAR) recently upheld the decision Of Authority of Advance Ruling held that No GST exemption available to Grains does not qualify to be seed. Member of authgority   Neethu Prasad , and B. V. Sivanaga Kumari, observed that the whole gamut of dispute is around exemption contained in the two notifications

. Both the notifications have defined “agriculture produce” as any produce out of cultivation of plants and rearing of all life forms of animals, except the rearing of horses, for food, fiber, fuel, raw material or other similar products, on which either no further processing has done or such processing is done as is usually done by a cultivator or producer which did not alter its essential characteristics but makes it marketable for primary market. All Types of Jaggery pre-packed and labelled exigible to GST at 5%: AAR In Re: M/s. Prakash and Company- 2023 TAXSCAN (AAR) 158 The Authority for Advance Ruling ( AAR ), Karnataka, held that all types of jaggery pre- packed and labelled are exigible to GST at 5%. AAR Panel consisting of Dr. M.P Ravi Prasad, The Additional Commissioner of Commercial Taxes, along with Sri Kiran Reddy T, The Additional Commissioner of Customs and Indirect Taxes, held: “All types of jaggery, pre-packaged and labelled are covered under S.No 91 A of Notification No .1/2017 Central Tax (Rate) dated 28.06.2017, as amended vide Notification No.6/ 2022 dated 13.7. 2022. Also, all types of jaggery, pre-packaged and labelled are exigible to GST at 5% (CGST at 2.5% and SGST at 2.5%)” Supply of Frozen foods Attract 18% GST: AAR In Re M/s. SATS Food Solutions India Private Limited CITATION: 2023 TAXSCAN (AAR) 170 The Bengaluru bench of M P Raviprasad and Kiran Reddy Authority for Advance Ruling ( AAR ) has held that the supply of frozen foods attracts 18 per cent Goods and Service Tax.

The bench determine that applicant is in to manufacture of ready to eat food which are processed food products that are pre-cleaned, pre-cooked, packaged, but not ready for consumption without thawing, heating, reapportioning and repacking. The applicant also manufactures ready-to-cook foods which are processed food products which need post-manufacturing preparations like thawing cooking and addition of vegetables and proteins at institutional buyers end”. GST applicable to Products Manufactured as Pasteurised Milk and Milk Cream and Named as “Jigarthanda”: AAR In Re MADURAI FAMOUS JIGARTHANDA LLP CITATION:  2023 TAXSCAN (AAR) 169 The Tamil Nadu Bench Of N. Usha (SGST Member) and R. Gopala Swami (CGST Member)Authority of Advance Ruling )has held that the Goods and Service Tax would be applicable on the products manufactured as pasteurised milk and milk cream in the name of “Jigarthanda” The bench of observed that, “As per “goods” defined under Section 2(52) of CGST Act, 2017 means, Jigarthanda manufactured using various ingredients or inputs was in the form of semi- solid form, as stated by the applicant, would satisfy the definition of “goods” and accordingly, “Jigarthanda” would be treated as good. Service provided by CGHB not Eligible for GST at Nil Rate:AAR In Re M/s Sonal K. Mishra CITATION: 2023 TAXSCAN (AAR) 131 The Chhattisgarh Authority for Advance Ruling (AAR) has held that service provided by Chhattisgarh Housing Board was not eligible for Goods and service Tax at nil rate.

The bench of Sonal Misra and Abinav Agarva of authority of advance ruling that service provided by the application relation to maintenance of various colonies developed by Chhattisgarh Housing Board and not handed over to the local authority by CGHB are not eligible for the benefit of nil rates GST. Further bench determined that As per the Article 243G and 243W of Indian constitution entrusted the function to municipalities, and panchayat and other local authorities therefore supply of security guard is forthcoming from the tender document could not be termed as functions entrusted to a panchayat or municipality. 5% of GST applicable to Supply of Dried Coconut by EMS COCO: AAR In Re M/s. EMS COCOS CITATION: 2023 TAXSCAN (AAR) 168 The Tamil Nadu bench of R. Gopala swami (Additional Commissioner) and N. Usha (Joint Commissioner Authority for Advance Ruling (AAR) has held that 5% of Goods and Service Tax (GST) would be applicable to supply of dried Coconut manufactured and supplied by EMS COCO. The bench determine that finance ministry circular 163/1923 GST held that, “The whole unbroken kernel could be taken out of the shell only when it converts to copra.

The Applicant takes the copra cut into half, sun dries and segregates manually based on the round shape of copra, free of dirt/dust and sends it as edible copra and the rest of copra which are irregularly shaped, dusty are sent to oil milling units. But as the Circular clearly states, Copra is classified under heading 1203 irrespective of use.” As the impugned goods of the Applicant was only Copra and the same would be classified under Heading 1203 the authority held that GST rate of 5% would be applicable by entry at SL. No. 66 of Schedule I of 1/2017-Central Taxes (Rate) dated 28.06.2017. Value of Goods Exceed 25% than supply- Service of Milling Wheat into Flour Eligible for GST Exemption: AAR In Re M/s. SOMNATH FLOUR MILLS PRIVATE LIMITED CITATION: 2023 TAXSCAN (AAR) 163

The West bengal bench Brajesh Kumar Singh, (Joint Commissioner-CGST) and Joyjit Banik, (Senior Joint Commissioner-SGST) of Authority for Advance Ruling (AAR) has held that the service of milling wheat into flour would be eligible for Goods and Service Tax (GST) exemption as the value of goods had exceeded 25% than the value of supply. The Bench Ruled That “This composite supply of services by way of milling of wheat into flour (atta) to Food & Supplies Department, Govt. of West Bengal for distribution of such flour under Public Distribution System is eligible for exemption under serial no. 3A of the Notification No. 12/2017-Central Tax (Rate) dated 28.06.2017, as amended, since the value of goods involved in such composite supply does not exceed 25% of the value of supply. Job Work retaining Gold on Account of Wastage Beyond the Permissible Limit liable to 5% GST: AAR In Re M/s. Aabhushan Jewellers Pvt. Ltd. CITATION: 2023 TAXSCAN (AAR) 164

The West Bengal bench of Brajesh Kumar Singh (Joint Commissioner-CGST) and Joyjit Banik, of Authority for Advance Ruling (AAR) has held that the job work retaining gold on account of wastage beyond the permissible limit would be liable to 5% of Goods and Service Tax. The bench further observed that the activities carried out by the applicant would come within the purview of job work as defined in the GST Act. It was also observed that and the excess wastage allowed to the applicant would be considered as non-monetary consideration for determination of value of supply of job work services as the price was not the sole consideration for the supply. Therefore, the value of supply of services, making charges on which the applicant is liable to pay tax @ 5% would be determined as per provision of section 15 of the GST Act read with rule 27 of the CGST/ WBGST Rules, 2017. The Bench held that the applicant who retained 10 gm of pure gold on account of wastage which was beyond the permissible limit of wastage in the nature of normal loss, the value of pure gold so retained by the applicant would form a part of value of supply of job work services and would be liable to 5% of GST Milling of Wheat into Flour to Govt of West Bengal Public Distribution System Eligible for GST Exemption: AAR In Re M/s. JAI LOKENATH FLOUR MILLS PRIVATE LIMITED CITATION: 2023 TAXSCAN (AAR) 173

The West Bengal bench of Brajesh Kumar Singh, (CGST Member) and Joyjit Banik, (SGST Member) of Authority for Advance Ruling (AAR) has submitted that the milling of wheat into flour to the government of West Bengal for public distribution system would be eligible for Goods and Service Tax (GST) exemption. The bench determined that In the instant case, value of supply shall be the consideration in money as well as non-cash consideration, as discussed. This composite supply of services by way of milling of wheat into flour (atta) to Food & Supplies Department, Govt. of West Bengal for distribution of such flour under Public Distribution System is eligible for exemption under serial no. 3A of the Notification No. 12/2017-Central Tax (Rate) dated 28.06.2017, as amended, since the value of goods involved in such composite supply does not exceed 25% of the value of supply.” Top Stories No GST on Advances from Prospective Buyers for sale of land with Basic Amenities: AAAR In Re M/s. Rabia-Khanum 2023 TAXSCAN (AAAR) 109

The Karnataka bench of Ranjana Jha and Shikha C of Appellate Authority for Advance Ruling (AAAR) has upheld that consideration received from prospective buyers, whether as advances or full payment, before completion of development works on land for selling them as plots, are not taxable under the Central Goods and Services Tax (CGST) Act, 2017. The ruling provides clarity to the real estate sector on the taxability of consideration received from prospective buyers before the completion of development works on land. The ruling also emphasizes the need to differentiate between the sale of land and the development of land, which are two distinct activities. GST Applicable on Desilting of Foreshore of Prakasam Barrage to Water Resource Department Andhra Pradesh Government: AAR : In Re M/s. Reach Dredging Limited  2023 TAXSCAN (AAR) 172 The West Bengal bench of Brajesh Kumar Singh (CGST Member) and Joyjit Banik, (SGST Member) Authority for Advance Ruling ( AAR ) has held that Goods and Service Tax ( GST ) would be applicable on the desilting of the foreshore of Prakasam Barrage to the Andhra Pradesh Government water resource department. The Authority determined that the supply undertaken by the applicant to the Water Resource Department,

Government of Andhra Pradesh for desilting of the foreshore of Prakasam Barrage was a composite supply of works contract involving predominantly earthwork and would be taxable vide entry No. 3 (vii) of the Notification No. 39/2017- Integrated Tax (Rate) dated 13.10.2017, as amended GST Applicable to Work Contract Services for Construction Residential Quarters for NPCIL Employees In Re M/s. SOM VCL 2023 TAXSCAN (AAAR) 110 The Tamil Nadu bench of Mandalika Srinivas, Member (Centre) And Dheeraj Kumar, Member (State) state Appellate Authority for Advance Ruling ( AAAR ) has stated that Goods and Service Tax ( GST ) would be applicable to work contract services for the construction of residential quarters for the employees of Nuclear Power Corporation of India Ltd ( NPCIL ). The authority observed that , as per amendment made to the entry 3(vi) of Notification No. 11/2017-C.T.(Rate) dated 28.06.2017 vide Notification No. 15/202l-C.T.(Rate) dated 18.11.2021 effective from 01.01.2022, ‘Government entity’ would be omitted in the class of recipients.

Therefore, the applicable rate of tax for the above work would be 9% of COST plus 9% of SGST as per entry SI.No. 3(xii) of Notification No. 11/2017-C.T. (Rate) dated 28.06.2017 (as amended) read with the corresponding Notification under TNGSTA. Bus Body Building activity Attract 18% GST: AAR In Re M/s. Shri. R.Gopalsamy 2023 TAXSCAN (AAR) 167 The Tamilnadu bench of N Usha and R Gopalaswamy Authority for Advance Ruling (AAR) has recently held that bus body building activity attracts 18 percent Goods and Service Tax. the authority ruled that “activity of bus body building undertaking on the chassis supplied by the customer to the applicant amount to supply of service as per schedule II cause 3 Of CGST Act 2017 and will be attract 18% GST. Chamundeswari Electricity Supply Eligible for ITC: AAR In Re M/s. Chamundeshwari Electricity Supply Corporation Limited 2023 TAXSCAN (AAR) 166

The Karnataka bench of Ravi Prasad (state member) and Kiran Reddy T (central member) Authority for Advance Ruling (AAR) has held that the Chamundeshwari Electricity Supply would be eligible for Input Tax Credit (ITC). The Authority observed that, As per Section 16(1) of CGST Act 2017 every registered person would be entitled to take credit of input tax charged and input tax means tax charged on any supply of goods or services or both made to him. Regarding the input tax credit on auxiliary services, subject to section 17(2) of the CGST Act read with Rule 42 and 43 of CGST Rules, the applicant would be eligible to claim input tax credit on the inward supply of services against output taxable supplies of support and auxiliary services and other supply of taxable goods, further observed. Supply of Assistance in Design and Development of Pattern used for Manufacture of Camshaft is Supply of Goods: AAAR In Re M/s. Precision Camshafts Limited 2023 TAXSCAN (AAAR) 105 The Maharashtra bench of Rajeev Kumar Mital and Dr D Srinivas Appellate Authority for Advance Ruling ( MAAAR ) ruled that the supply of assistance in the design and development of patterns used for the manufacture of camshafts is the supply of goods.

The Bench observed that “the impugned transaction is composite supply where the principal supply is the supply of services is not valid. In view of the above discussion, we hold that the impugned transaction is the supply of goods i.e. pattern/tool of specified specifications.” Composite Supply covers ‘Setting up of Network’ : AAAR upholds 12% GST on Supply of Services to In Re BSNL Sterlite Technologies Limited 2023 TAXSCAN (AAAR) 108 According to a decision made by the bench of Dr. D. K. Srinivas (Central Tax) and Rajeev Kumar Mital (State Tax) Maharashtra Appellate Authority for Advance Ruling (MAAAR), the delivery made in accordance with the contract from 1.4.2019 to 12.2021 is considered to fall under entry at serial number 3(vi)(a) of Notification No. 1/2017-Central Tax (Rate) dated 28.06.2017 and is subsequently taxed at 6% under CGST, 6% under SGST, or 12% under the IGST Act.

The bench further observed that the ruling of 18% GST rate is binding till 1st March 2019. However as per the notification, supply under the contracts from 1.4.2019 to12.2021 is 12%. Classification of Goods shall not alter on account of supply to Railways: AAAR confirms Roof Mounted Air-Conditioning unit classified under HSN Heading 8415 -2023 TAXSCAN (AAAR) 113 In Re M/s. ESS ESS KAY ENGINEERING COMPANY PVT LTD The Punjab Appellate Authority for Advance Ruling (AAAR) bench of Rajesh Puri, Chief Commissioner and Kamal Kishor Yadav, Commissioner of State Tax while confirming the roof mounted air-conditioning unit classified under HSN Heading 8415 ruled that classification of goods should not alter on account of supply to railways.

The bench Upheld the decision of the AAR Observed that Goods that is Roof Mounted Air- Conditioning unit manufactured by the appellant are classifiable under HSN Heading 8415 18% GST payable on Tipper body building & mounting if chassis owned and supplied by customer: AAR In Re M/s. Raj Agro Aids 2023 TAXSCAN (AAR) 180 The Punjab bench of Viraj Shyamkarn Tidke and Vrinder Kaur Authority for Advance Ruling (AAR) has held that 18% Goods and Service Tax (GST) shall be payable on tipper body building and mounting if the chassis was owned and supplied by the customer.

The Authority determinmed hat The activity of building and fabricating of Tipper Body and mounting the same by the applicant and collecting fabrication charges including inputs required for such fabrication work, if the chassis was owned and supplied by the customer, would result in supply of services under SAC 9988 and would be attracting a GST @18%. The Authority further held that, the activity of building and fabricating of Tipper Body and mounting the same by the applicant on the chassis owned by the applicant and using its own inputs & capital goods would amount to supply of goods and would be classified under HSN 8707, attracting GST @28%. GST applicable on supply of Aluminium Foil Type Winding Inverter Duty Transformer and their part: AAAR In Re Shilchar Techonologies Limited 2023 TAXSCAN (AAAR) 114

The Gujarat bench of Milind Torawane (SGST) and Vivek (CGST) of Appellate Authority for Advance Ruling (AAAR) has held that Goods and Service (GST) would be applicable on supply of aluminium foil type winding inverter duty transformer and their part. The authority observed that, the appellant was liable for payment of GST on the total value of both the purchase order i’e’ supply of goods and supply of services in terms of Explanation Entry inserted vide Notification No’234 to Notification No. 0l/2017- central Tax (Rate) dated 2g.06.2017 vide No’ 24/2018-central Tax (Rate) dated 31.12.2018 and liable to be taxed, up to 30.09.2021 as 3.5 % GST on goods and 5.4% upon services. Institutions set up to carry out functions entrusted by Municipality are Governmental Authority, attracts GST @18%: AAAR In Re Indian Hume Pipe Company Ltd- 2023 TAXSCAN (AAAR) 115 The Karnataka bench of Ranjana Jha and Shikha C ,Appellate Authority for Advance Rulings (AAAR) has upheld that the institutions set up to carry out functions entrusted by municipalities are governmental authority and attract a GST of @18% The bench upheld the decision of Karnataka Authority for Advance Ruling (AAR) and held that, “In so examining, we find that BWSSB does not qualify as a ‘local authority’ as defined in Section 2(69) of the CGST Act. Accordingly, we hold that with effect from 1″ January 2022, the Appellant is not eligible for concessional rate of tax of 12% in terms of entry Sl.No 3(iii) of Notification No 11/2017 CT (Rate) dated 28-06-2017 as amended by Notification No 15/2021 CT (Rate) dated 18-11-2021 on the supplies made to BWSSB.

We uphold the order passed by the lower Authority with regard to the rate of applicable tax on the supplies of works contract service made by the Appellant to BWSSB with effect from 1″ January 2022. No ITC When Purchases from Seller discharged Tax Liability but Preceding Seller does not: AAR-In Re VIMAL ALLOYS PVT LTD: 2023 TAXSCAN (AAR) 178 The Punjab bench of Authority for Advance Ruling Viraj ShyamKarnTidke (CGST Member) and Varinder Kaur has held that the purchaser could not avail Input Tax Credit ( ITC ) when purchased from seller who discharged tax liability but preceding seller has not discharged tax liability The Authority observed that the applicant could not avail Input Tax Credit (ITC) observing that, “section 16(2)(c) CGST Act and PGST Act, it is very much clear that no registered person shall be entitled to take the credit of any input tax in respect of any supply of goods or services or both unless the tax charged in respect of such supply has been actually paid to the Government, either in cash or through utilization of input tax credit admissible in respect of the said supply. If the seller or preceding sellers have not deposited the tax either in cash or through utilization of input tax credit admissible in respect of the said supply, the purchaser is not eligible to claim ITC on such supply.” Rooftop Unit or Installation Kit sold individually or in Combination, attracts 10% GST: AAR In Re EBERSPAECHER SUETRAK CITATION: 2022 TAXSCAN (AAR) 256 The Karnataka bench Dr. M.P. Ravi Prasad and T. Kiran Reddy of Authority for Advance Ruling (AAR), has held that Rooftop unit or installation kit sold individually or in combination merits classification under heading 8415 90 00 of Customs Tariff Act and hence it attracts 10% GST.

The Authority observed that “In this regard we observed that Rooftop unit and Installation kits are not classified individually under the Customs Tariff Act 1985, but are identified/recognised as parts of the composite machine i.e. “air condition system for a bus” itself. Thus the above items either individually or in combinations, are to be classified as parts of said composite machine, as they are suitable for solely or principally with a particular composite machine i.e. air conditioning system for bus. Thus they merit classification under heading 8415.90.00 i.e., parts of air conditioning machines and attracts GST accordingly.” Works Contract Services Provided for Indian Railway either as Main Contractor or Sub- Contractor attracts 18% GST: AAR– In Re S k Swamy and Company – 2023 TAXSCAN (AAR) 177

The Karnataka Authority for Advance Ruling ( AAR ) has recently ruled that the works contract services provided for the Indian Railway attract Goods and Services Tax ( GST ) at 18%, regardless of the nature of contract as subcontractor or as main contractor. the bench observed that they are engaged in supply of works contract services to Indian Railways such as construction of Rail under bridge, construction of tunnels, execution of Earth Works Contract, supply and stacking of ballast and sub-contract of the above-mentioned contract works and wants to know the rate of GST on the same. In this regard, the ruling authority perused the entry No. 3 of Notification No. 11/2017 Central Tax (Rate) dated 28.06.2017, which was amended vide Notification No. 3/2022-Central Tax (Rate) dated 13.07.2022. 5% GST Applicable to Supply of Ballast to Railways: AAR– In Re S k Swamy and Company CITATION:   2023 TAXSCAN (AAR) 177 The Karnataka bench of Members Dr M P Ravi Prasad and Kiran T Reddy of Authority for Advance Ruling ( AAR ) has ruled that the supply of Ballast to Railways attract Goods and Services Tax ( GST ) at 5% (CGST 2.5% and SGST 2.5%).

It was submitted that, “The Applicant has entered into a contract with Konkan Railway Corporation Limited for supplying and stacking ballast at Thokur ballast depot, loading into KRCL hoppers for CTR (P) works under AEN / Udupi. That is the applicant is supplying ballast to the Konkan Railway Corporation Limited and the supply of ballast to railways is exigible to GST at 5% (CGST @ 2.5% and SGST (HSN 2517) as per entry No. 126 of Schedule 1 of Notification No. 1/2017-Centra1 Tax (Rate), dated: 28.06.2017.” Authority that determined that, “Supply of ballast to railways is exigible to GST at 5%(CGST @2.5% and SGST (@2.5%) (HSN 2517) as per entry No. 126 of Schedule I of Notification No. 1/201 central Tax (Rate), dated: 28.06.2017. Supply of Ice Cream from Outlets Not “Restaurant Services”: AAR– In Re HRPL Restaurants P Ltd. CITATION: 2023 TAXSCAN (AAR) 176 The Gujarat bench of Milind Kavatkar (Member State) and Amit Kumar Mishra (Member Centre) Authority for Advance Ruling ( AAR ) has held that the supply of ice cream from outlets could not be treated as restaurant services.

The Authority observed that the supply of ice cream from the outlets of the applicant could not be considered as supply of restaurant services. The readily available ice creams not prepared in their outlets sold over the counter were supply of goods. It was also held that an ice cream when ordered and supplied along with cooked or prepared food. through their outlets would assume the character of composite supply, wherein the prepared food being the principal supply and hence qualifies as restaurant services’. Myntra is not Eligible for ITC on Vouchers which are Neither “Goods” nor “Services”: AAAR In Re Myntra Designs Pvt Ltd CITATION: 2023 TAXSCAN (AAAR) 111 The Karnataka Appellate bench of Ranjana Jha and Shikha C, of Authority for Advance Ruling (AAAR ) has held that Myntra design Pvt Ltd which is an Indian fashion e-commerce company would not be eligible for Income Tax Credit ( ITC ) on vouchers as it was neither good nor service

The bench of observed that the vouchers intended to be procured by the appellant were neither good nor service and could not be taxed referring to the honourable Karnataka High Court decision in “Premier sales promotion Pvt Ltd case”. The Authority upheld the ruling of lower authority observing that, “The Appellant has also made detailed submissions on why the vouchers cannot be termed as ‘gifts’ given to the customers. Again, we find that examining this aspect is of no relevance since we have already held that input tax credit is not eligible for an inward supply which is held by the High Court as being neither a supply of goods nor service. Therefore, while we agree with the ultimate ruling given by the lower Authority that input tax credit is not available on the vouchers received by the Appellant. Supply of Coir Pith Compost above 50kg Bags Exempted from GST: AAR-In Re Sri Lakshminarasimha Agro Products CITATION: 2023 TAXSCAN (AAR) 17 The Karnataka bench of M.P. Ravi Prasad (Member State) and Kiran Reddy (Member Central) Authority for Advance Ruling (AAR) has held that the supply of coir pith compost above 50kg bags are exempted from Goods and Service Tax (GST) The Authority determined that the supply of Coir pith compost above 50kg Bags would be exempted from GST. it was further observed that, “Rule 3(b) of Legal Metrology (Packaged commodities) Rules, 2011 says that these rules are not applicable to packages of commodities containing quantity of more than 25 kg or 25 litre excluding cement and fertilisers sold in bags up to 50 kg Le Chapter II of that Rules shall not apply to fertilisers sold in above 50 kg bags and hence they are not exigible to GST if sold in above 50 kg bags.” Supply of Work Contract Service Attract 18% GST: AAR– In Re M/s. Suez India Private Limited 2023 TAXSCAN (AAR) 175

The Bengaluru bench of Kiran Reddy T and M P Raviprasad Authority for Advance Ruling (AAR) has recently held that supply of frozen foods should attracts 18 percent Goods and Service Tax. the authority While in discussion observed that” as per the notification N0.11/2017 Central Tax (Rate)as amended Notification No.30/2017,Defined Governmental Authority, so applicant is a government authority as per the above notification The bench determined that work contract service supplied by the applicant in relation to sewage treatment to Bengaluru Water Supply and Sewerage Board on or after 1 January 2022 is exigible to GST at 18% Applicant cannot seek Advance Ruling on Supply where he is Recipient of Services: AAR In Re Anmol Industries Limited 2023 TAXSCAN (AAR) 171 The West Bengal bench of Brajesh Kumar Singh (CGST Member) and Joyjit Banik (SGST Member) Authority for Advance Ruling ( AAR ) has rejected the application for advance ruling holding that the applicant could not seek an advance ruling on supply where the applicant himself was the recipient of services. The Authority rejected the application holding that to bear the incidence of tax as a recipient of supply could not be construed as payment of tax under the GST Act, as contended by the applicant. It was further observed that “In the subject application, the applicant cannot seek an advance ruling in relation to the supply where he is a recipient of services.”

Milling of Wheat into Flour to Govt of West Bengal Public Distribution System Eligible for GST Exemption: AAR In Re JAI LOKENATH FLOUR MILLS PRIVATE LIMITED- 2023 TAXSCAN (AAR) 173 The West Bengal bench of Brajesh Kumar Singh, (CGST Member) and Joyjit Banik, (SGST Member) Authority for Advance Ruling (AAR) has submitted that the milling of wheat into flour to the government of West Bengal for public distribution system would be eligible for Goods and Service Tax (GST) exemption. The bench held that, “In the instant case, value of supply shall be the consideration in money as well as non-cash consideration, as discussed. This composite supply of services by way of milling of wheat into flour (atta) to Food & Supplies Department, Govt. of West Bengal for distribution of such flour under Public Distribution System is eligible for exemption under serial no. 3A of the Notification No. 12/2017-Central Tax (Rate) dated 28.06.2017, as amended, since the value of goods involved in such composite supply does not exceed 25% of the value of supply GST Applicable on Desilting of Foreshore of Prakasam Barrage to Water Resource Department Andhra Pradesh Government: AAR

In Re Reach Dredging Limited- 2023 TAXSCAN (AAR) 172 The West Bengal bench of Brajesh Kumar Singh (CGST Member) and Joyjit Banik, (SGST Member) Authority for Advance Ruling ( AAR ) has held that Goods and Service Tax ( GST ) would be applicable on the desilting of the foreshore of Prakasam Barrage to the Andhra Pradesh Government water resource department The Authority determined that that the supply undertaken by the applicant to the Water Resource Department, Government of Andhra Pradesh for desilting of the foreshore of Prakasam Barrage was a composite supply of works contract involving predominantly earthwork and would be taxable vide entry No. 3 (vii) of the Notification No. 39/2017- Integrated Tax (Rate) dated 13.10.2017, as amended.

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