Authority for Advance Ruling (AAR)

(i) Whether supply of goods to Anand Municipality Corporation (Local Authority of Anand City) attracts GST or it is exempt? 

(ii) If GST is applicable on the supply of goods to Anand Municipality Corporation, then what will be the rate of GST applicable on the following items?

Whether the applicant is able to avail the Input Tax Credit of Rs. 27,14,559/- Integrated Tax paid against the pre-notice consultation letter under Section 28(1) of the Customs Act, 1962 in terms of the time line prescribed in Section 16(4) of the CGST Act, 2017?

i. What is the correct GST rate applicable for the transportation of empty containers by rail?

 ii. What are the legal and tax implications if GST is charged at 5% on the transportation of empty containers instead of 12%? 

iii. Under what conditions would Entry No. 9(i) (transport of goods by rail, other than services specified at item No. 9(iv)) apply to the transportation of empty containers?

“Whether the applicant can pay GST @ 12% under forward charge on GTA services under Notification No. 20/2017-Central Tax (R) dated 22.08.2017 read with Notification No. 13/2017-Central tax (R) dtd. 28.06.2017 and claim full ITC including on bio-diesel fuel.”

“Whether the receipt of consideration in the form of non-voting, irredeemable preference shares would fulfil the requirement of “receipt of consideration” as referred in Section 2(6)(iv) of the IGST Act, 2017 and therefore there will be no liability to pay GST on the supply of the said services (customization and licensing of the proprietary platform) by the Applicant to the overseas client.”

The company is seeking an advance ruling on the admissibility of Input Tax Credit (ITC) paid on the construction services (foundation works and steel structural support) for their manufacturing machinery. They argue that the ITC is eligible under the Explanation to Section 17(5)(c) of the CGST Act, 2017, as the foundation is an integral part of 'plant and machinery' for their outward supply.

Whether the service of renting of Residential building provided by the Applicant to the Lessee, an unregistered person, for use as residential accommodation for the students and working professionals (“the Residents”), is exempt as per S. No. 12 of the Exemption Notification No. 12/2017 – Central Tax (Rate) dated 28 June 2017 and corresponding exemption notification issued under the Gujarat State GST Act?

 2. If the answer to above question is in negative, who shall be the person liable to pay GST on the impugned service of renting of residential dwelling and what shall be the applicable rate of GST thereupon?

(1) Whether subsidized deduction made by the applicant from the employees and workers towards canteen facility provided by the canteen service provider at the canteen facility would be considered as a ‘supply’ by the applicant under the provisions of Section 7 of the CGST Act, 2017 and GGST Act, 2017.

Whether GST registration can be granted to multiple unrelated business, each allotted a distinct, identifiable and demarcated seat with unique seat numbers and time slots, at the same address as their “Principal Place of Business”, provided that: • The address is used as a virtual office, allotted for a fixed time slot per day, week or fortnight (e.g. one hour, two hours or more as mentioned in the leave and licence agreement). • Proper documentation such as sub-rental/sub-lease agreements is executed and available. • Books of accounts are maintained and managed by the service provider firm and/or an authorised representative on behalf of the taxpayer upon grant of GST registration. • The clients are either legitimate service providers and /or suppliers of goods and /or both/e-commerce sellers working remotely from various states. • Applicant raises an invoice to the clients. • No physical stock is stored at the premises; however, the client will provide the address of a warehouse either of his own/rental or belonging to an e-commerce operator (e.g. Amazon, Flipkart) as their additional place of business.

"Question 1: Whether the nominal amount recovered by the Applicant from the salary of the Employees for providing the canteen facility in the factory premises would be considered as a 'supply of service' under the provisions of the Central Goods and Services Tax Act, 2017? a. In case answer to above question is yes, whether GST is payable thereon. b. Whether input tax credit (ITC) is available to the Applicant on GST charged by the Canteen Service Providers for providing the canteen services?

 Question 2: Whether the nominal amount recovered by the Applicant from the salary of employees for providing the non-air-conditioned bus transportation facility would be construed as 'supply of service' under the provisions of the Central Goods and Services Tax Act, 2017? a. If answer to above question is yes, whether GST is payable thereon? b. Whether ITC is available to the Applicant on GST charged by the Transport Service Providers for providing the bus transportation services?"