Authority for Advance Ruling (AAR)

Applicability of Entry No.03 of Notification No.12/2017 dated 28.06.17

I. Whether applicant's direction to the seller (directed in agreement dated 21 June 2018) for direct transfer of BP business to MSPL and PM business to MPMPL, respectively would qualify as a 'supply between the applicant' and 'MSPL/MPMPL'?

ii. If the answer to the above question is 'affirmative' then as the parties are related, even in absence of the actual consideration does the applicant have to attribute a notional consideration and charge GST in line with schedule 1 of GST Act to be compliant?

iii. If the answer to both the questions are 'affirmative' then as the recipients (MSPL/MPMPL) are eligible to avail full input tax credit then the notional consideration (percentage of the business transfer value) would be only academic and will the invoice value be considered as open market value?

1. Whether exemption under Sr. No. 13 of Notification No. 12/2017 - Central Tax (Rate) dated 28th June 2017 is applicable to the Applicant?

2. Whether the Applicant is liable to get registered under section 22/24 of CGST Act, 2017?

3. If the Applicant is liable to pay GST, then on what value GST liability needs to be discharged, whether on the commission which the Applicant receives from pundits/website users or on the booking value received from website users?

Whether automotive chains (i.e., silent chains used in petrol engines and roller chains used in diesel engines) manufactured by the applicant are classifiable under HSN 8409 or 7315?

Whether exemption provided under Sl.No.54(e) of GST Notification No.12/2017-Central Tax (Rate) dated 28.6.2017 for the service providers who have rendered Handling services such as loading, unloading, packing, storage or warehousing of agricultural products is applicable for agricultural products viz. Wheat when imported through sea port?

1. Classification of any  goods or services or both;

2. Determination of the liability to pay tax  on any goods or services or both;

a) Whether the long duration post graduate diploma/ degree granting programmes offered by the Indian Institute of Management, Bengaluru other than specifically mentioned in Sl.No.67 of Notification No.12/ 2017 – Central Tax (Rate) dated 28th June 2017 as amended by Notification No.2 /2018 dated 25th January 2018 are exempted from the GST output liability on education as a part of a curriculum for obtaining a qualification recognized by any law for the time being in force in the light of enactment of the Indian Institute of Management Act, 2017?

b)  Whether supply of online educational journals or periodicals to the Indian Institute of Management, Bengaluru is exempted from reverse charge liability of GST under Sl. No.66 of Notification No.12 / 2017 – Central Tax (Rate) dated 28th June 2017 as amended by Notification No. 2/2018 dated 25th January 2018 being education provided as a part of a curriculum for obtaining a qualification recognized by any law for the time being in force in the light of enactment of the Indian Institute of Management Act, 2017?

a) Whether the amortised cost of the tool to be added to arrive at the value of the goods supplied for the purpose of GST under Section 15 of the CGST Act read with rule 27 of CGST Rules.

A. Whether storage or warehousing mentioned in clause (i) (e) of the explanation in entry at S.N 24 includes cold storage, deep freeze storage and controlled atmosphere storage also?

B. In case, services by way of storage or warehousing does not include services by way of cold storage, deep freeze storage or controlled atmosphere storage, will such services in relation to agriculture produce be charged to tax and if yes at what rate and under which classification?

C. As per the definition of agriculture produce given in clause (vii) of the explanation in note number 4 to the said notification, agriculture produce include produce out of cultivation of plants and rearing of all life forms of animals on which processing is done as is usually done by cultivator or producer which does not alter its essential characteristics but makes it marketable for primary market. Does that imply that when such processing is done, which is usually done by the cultivator, in the processing house or a factory by person other than cultivator which does not alter its essential characteristics of the produce out of cultivation of plants and rearing of life forms of animals, but makes it marketable for primary market will also be covered by the definition of “agriculture produce”?  

D. Whether turmeric whole (gattha&fali), turmeric powder, red chili (whole), red chili powder, chili seeds are covered under the definition of 'Agriculture Produce' as defined under Notification No. 11/2017- Central tax (Rate) dated 28.06.2017

The ruling prononced by the AAR have been set aside and it is ordered that Polypropylene Leno Bags manufactured by the respondents be classified under Tariff Heading 39232990.