Authority of Advance Ruling (AAR) Weekly Flashback for the period 2 to 8 March 2025.
PVC Raincoats Attract 18% GST; Not Classified as Textile Apparel, Rules Authority: AAR
The West Bengal Bench of Authority of Advance Ruling (AAR) has ruled that 18% GST is payable on supply of PVC raincoat.
The bench of Dr Tanisha Dutta and Joyjit Banik has observed that the item PVC raincoat, in common parlance, is known as apparel. The PVC raincoat being an apparel, which is primarily composed of polyvinyl chloride (PVC), would be classified under HSN 3926 20 as Articles of apparel and clothing accessories (including gloves, mittens and mitts).
GST Registration Must For Liquidator, Rules AAR: Know Why
The West Bengal Authority of Advance Ruling (AAR) has ruled that the GST registration is must for liquidator as any sale of assets of the company Maheshwary Ispat Limited which is in liquidation, done by the Liquidator of the company results in a supply of goods and/or services or both within the meaning of “supply” as defined under section 7 of the CGST Act 2017.
The bench of Dr Tanisha Dutta and Joyjit Banik has observed that the Liquidator who is an insolvency professional being appointed by the NCLT Kolkata Bench as a liquidator, is required to obtain GST registration in terms of Section 24 of the CGST Act, 2017 and WBGST Act 2017 read together with the Notification no. 11/2020-Central Tax dated 21-March-2020 and Notification no. 439-F.T dated 03-April 2020, issued under the WBGST Act, 2017.
GST Payable On Reimbursement Of Municipal Property Tax By Lessee/Occupier: AAR
The West Bengal Authority of Advance Ruling (AAR) has ruled that Goods and Service Tax (GST) is payable on reimbursement of municipal property tax by lessee/occupier.
The bench of Dr Tanisha Dutta and Joyjit Banik has observed that the municipal property tax levied under the Kolkata Municipal Corporation Act, 1980, being a tax other than the CGST Act/ WBGST Act/ UTGST Act/ GST (Compensation to States) Act shall therefore form a part of the value of supply on which GST will be levied.
No GST On Reimbursement Of Electricity Charges On Actual Basis: AAR
The West Bengal Authority of Advance Ruling (AAR) has ruled that goods and service tax (GST) is not payable on reimbursement of electricity charges on actual basis.
The bench of Dr Tanisha Dutta and Joyjit Banik has observed that the applicant will be deemed to be acting as pure agent in regard to supply of electricity to its sub-lessee and the reimbursement amount shall not be a part of his value of supply.
No GST On Supply Of Processed Sea Food In ‘Industrial Pack – Not For Retail Sale’: AAR
The West Bengal Authority of Advance Ruling (AAR) has ruled that no goods and service tax (GST) is payable on supply of processed seafood in ‘industrial pack – not for retail sale’ otherwise 5% GST would be applicable on sea food for retail sale.
The bench of Dr Tanisha Dutta and Joyjit Banik has observed that the supply of packaged commodity for consumption by industrial consumer or institutional consumer is excluded from the purview of the Legal Metrology Act by virtue of rule 3(c) of chapter II of Legal Metrological (Package Commodities) Rules, 2011. Therefore, if supplied in such a manner as to attract exclusion provided under the said rule 3(c), it will not be considered as pre packaged and labelled for the purposes of GST levy. Hence, if supply of the subject commodity meets the above given conditions, it will not be subjected to GST. In all other cases, it will attract 5% GST.
GST Exemption On Milling Of Food Grains For PDS If Value Of Goods Does Not Exceed 25% Of Supply: AAR
The West Bengal Authority of Advance Ruling (AAR) has ruled that Goods and Service Tax (GST) exemption is available on milling of food grains for Public Distribution System (PDS) if value of goods does not exceed 25% of supply.
The bench of Dr Tanisha Dutta and Joyjit Banik has observed that the supply of services provided by the applicant company to the State Government is by nature a composite supply of services by way of milling of food grains into flour (atta) to the Government i.e. Food & Supplies Department, Govt. of West Bengal for distribution of such flour under Public Distribution System (PDS) which is by way of an activity in relation to a function entrusted to a Panchayat under article 243G covered by entry in sl. no. 28 of the Eleventh Schedule appended to article 243G of the Constitution of India and where, the value of goods involved in the instant composite supply does not exceed 25% of the value of the composite supply .
GST Applicable On Supply Of Mobile Veterinary Unit Personnel On Contractual Basis Under Livestock Health & Disease Control Scheme: AAR
The West Bengal Authority of Advance Ruling (AAR) has ruled that no GST is payable on supply of mobile veterinary unit (MVU) personnel on contractual basis under Livestock Health & Disease Control Scheme.
The bench of Dr Tanisha Dutta and Joyjit Banik has observed that the supply of MVU personnel on contractual basis for implementation of ―Establishment and Strengthening of Veterinary Hospitals & Dispensaries (ESVHD) – Mobile Veterinary Unit (MVU) under Livestock Health & Disease Control (LH & DC) Scheme‖ is not eligible for exemption benefit.
