Authority for Advance Ruling (AAR)

The applicant is performing the function of the municipality namely public health, sanitation conservancy and solid waste management, a function entrusted to a municipality under the Twelfth Schedule to Article 243W of the Constitution through the above contractors/sub-contractors of Coimbatore Municipal Corporation.

The applicant states that they are planning to start a Leasing/Rental business wherein they will procure consumer durable products/ Vehicles/ Mobile Phones/ Electronic equipment / Computers and Laptops and given them on lease for a certain period on a contract basis.

Q(1) Whether the subsidized deduction made by the Applicant from the Employees who are availing food in the factory would be considered as a “supply” by the Applicant under the provisions of Section 7 of Central Goods and Service Tax Act, 2017 and Rajasthan Goods and Service Tax Act, 2017. If yes, -Whether GST would be leviable in cases where nominal amount will be deducted from the salary of the employees by the Applicant? -Whether GST would be leviable in cases where nominal amount is recovered from the Manpower supplier in case of contractual employees?

 Ans: Yes 

Q(2) Whether ITC of the GST charged by the Canteen Service Provider would be eligible for availment to the Applicant? 

Answer : Input Tax Credit will not be available to the Applicant on GST charged by the canteen service provider, in terms of provisions of the Notification No. 11/2017-Central Tax (Rate), dated 28-6-2017, as amended vide Notification No. 20/2019-C.T. (Rate), dated 30-09-2019, as discussed in para 7 above.

Q(1) Whether the subsidized deduction made by the Applicant from the Employees who are availing food in the factory would be considered as a “supply” by the Applicant under the provisions of Section 7 of Central Goods and Service Tax Act, 2017 and Rajasthan Goods and Service Tax Act, 2017. If yes, -Whether GST would be leviable in cases where nominal amount will be deducted from the salary of the employees by the Applicant? -Whether GST would be leviable in cases where nominal amount is recovered from the Manpower supplier in case of contractual employees?

 Ans: Yes 

Q(2) Whether ITC of the GST charged by the Canteen Service Provider would be eligible for availment to the Applicant?

 Answer : Input Tax Credit will not be available to the Applicant on GST charged by the canteen service provider, in terms of provisions of the Notification No. 11/2017-Central Tax (Rate), dated 28-6-2017, as amended vide Notification No. 20/2019-C.T. (Rate), dated 30-09-2019, as discussed in para 7 above.

Q(1) Whether the subsidized deduction made by the Applicant from the Employees who are availing food in the factory would be considered as a “supply” by the Applicant under the provisions of Section 7 of Central Goods and Service Tax Act, 2017 and Rajasthan Goods and Service Tax Act, 2017. If yes, -Whether GST would be leviable in cases where nominal amount will be deducted from the salary of the employees by the Applicant? -Whether GST would be leviable in cases where nominal amount is recovered from the Manpower supplier in case of contractual employees? 

Ans: Yes 

Q(2) Whether ITC of the GST charged by the Canteen Service Provider would be eligible for availment to the Applicant? 

Answer : Input Tax Credit will not be available to the Applicant on GST charged by the canteen service provider, in terms of provisions of the Notification No. 11/2017-Central Tax (Rate), dated 28-06-2017, as amended vide Notification No. 20/2019-C.T. (Rate), dated 30-09-2019, as discussed in para 7 above.

Q(1) Whether the subsidized deduction made by the Applicant from the Employees who are availing food in the factory would be considered as a “supply” by the Applicant under the provisions of Section 7 of Central Goods and Service Tax Act, 2017 and Rajasthan Goods and Service Tax Act, 2017. If yes, -Whether GST would be leviable in cases where nominal amount will be deducted from the salary of the employees by the Applicant? -Whether GST would be leviable in cases where nominal amount is recovered from the Manpower supplier in case of contractual employees? 

Ans: Yes 

Q(2) Whether ITC of the GST charged by the Canteen Service Provider would be eligible for availment to the Applicant? 

Answer : Input Tax Credit will not be available to the Applicant on GST charged by the canteen service provider, in terms of provisions of the Notification No. 11/2017-Central Tax (Rate), dated 28-06-2017, as amended vide Notification No. 20/2019-C.T. (Rate), dated 30-09-2019, as discussed in para 7 above.

The Tamil Nadu Nurses and Midwives Council was formed under ‘The Tamil Nadu Nurses and Midwives Act, 1926. It is an act to provide for registration of Nurses, Midwives, Health Visitors, auxiliary Nurse-Midwives and Dhais in the State of Tamil Nadu.The issue mainly related to the taxablity of the various fee collected by them.

The Council imparts medical ethics to the RMP’s and ensure scientific practice by them and issues Provisional, Under Graduate, Post Graduate Registration Certificate, No Objection Certificate and Certificate of Good standing and CME certificates.The issue mainly related to the taxablity of the various fee collected by them.

The applicant states that they are engaged in the field of fabrication and truck body building, wherein independent private customer, buy chassis from Chassis manufacturer (also referred to as OEM's), which is sent to them for the purpose of body building activity of Tipper version Motor vehicle falling under Chapter 87 as complete motor vehicle, which belongs to such customer and the customer owns the chassis and also owns complete body built vehicle and which is also registered in RTO in the name of such independent private customer.

A.The Applicant purchases goods from its group companies outside India. On arrival, the goods are warehoused inside the FTWZ Unit on the behalf of the Applicant. The title to the goods stored in FTWZ Unit continues to remain with the Applicant.

 B.As and when the purchase orders are received by the Applicant from customers in India, the Applicant would raise sale invoice on the customer.

 C.The customer would clear the warehoused goods by filing bill of entry for home consumption post assessment of applicable customs duty (i.e., BCD+SWS+IGST) and remove of goods from FTWZ Unit. The issue involved is whether IGST is payable on the sale of goods warehoused in FTWZ premises before clearence for home consumption.