Authority for Advance Ruling (AAR)

Payment of IGST under reverse charge mechanism (RCM) on deemed Ocean freight on import of goods (raw material) on CIF basis.

Q-1 What should be the Classification and GST rate on Supply of popcorn under Notification  No.01/2017-Central Tax (Rate) dated 28.06.2017 amended till date?

Ans- The HSN code of the product namely”Popcorn” is 19041090 Attracting Rate of Tax @9% each under Central and State Tax (cumulatively 18%) as per Sl.No. 15 of schedule III of Notification No.1/2017-Central Tax (Rate) dated 28.06.2017 as amended.

Classification of goods and applicable tax rate on that.

Applicability of a notification issued under the provision of the Act.

Question Not Mentioned in the Application

Whether the Supply made by M/s. INI Studio Pvt. Ltd. would qualify for Exemption under Entry No. 3 of the Notification No. 12 / 2017 – CT as a “Service” in relation to any functions entrusted to a municipality under article 243W of the Constitution as a “Pure Service” having no element of goods so as to construe it as “Works Contract’ as defined under Section 2 (119) of the Central Goods and Services Act, 2017 (CGST Act, 2017)”?

Question Not Mentioned in the Application

Double taxation on freight portion of imported goods-

Goods imported and IGST levied on CIF Value (which includes freight)  Plus Basic Custom duty plus Social Welfare Cess.

IGST levied again on the freight component (Ocean Freight) on reverse charge basis.

Rejected

Question Not Mentioned in the Application

Whether the applicant can purchase the E- Scrap under RCM and pay taxed at 5% being Trader.