Authority for Advance Ruling (AAR)

Q. Whether marine paints supplied by the applicant, would be considered to be a part of ship and accordingly be then classified under Sl No. 252 of Schedule I of Notification No. 1/2017 of Central Tax (Rates) dated June 28, 2017?

Answer: Answer in the negative.

(a)- Whether Supply of Comprehensive annual maintenance service which may also involve incidental supply of spare parts / goods should be classified as a composite supply or mixed supply?

(b)- In case the said contract is considered as composite supply, what is the principal supply between goods or services?

(c)- In case goods are considered as principal supply, how the taxability should be determined considering the following:

i- The contract would entail supply of various goods falling under different tax brackets.

ii- These goods would be supplied on a need basis as and when required at different points of time.

iii- There is no fixed value ascribed for goods in the contract considering these goods would be supplied depending upon condition of the locomotive at the time of maintenance.

(d)- In case services are considered as principal supply, what tax rate should be applicable?

(e)-In case of the said contract, what is the relevant place of supply and type of tax which needs to be discharged (i.e. CGST & SGST or IGST)?

The applicant supplies works contract service, involving supply of materials as well as services like erection of towers and commissioning of transmission lines. Whether applicant is liable to pay tax on transportation and allied services relating to delivery of the materials.

i) Whether TPADL is eligible to avail the exemption from levy of GST under Entry No. 25 of Notification 12/2017-Central Tax (Rate) dated 28.06.2017 bearing description 'Transmission or distribution of electricity by an electricity transmission or distribution utility' with respect to the non-tariff charges recovered from its customers?

(ii) Whether TPADL is liable to pay tax on the aforesaid recovery made from its customer?

Whether the supplies made to SRI HARI KOTA HIGH ALTITUDE RANGE ( SHAR),/ SATISH DHAWAN SPACE CENTRE, located at Sri Hari Kota, Andhra Pradesh, are eligible for concessional rate of tax as per the notifications 45/2017 (Central Tax – Rate), dated 14th November 2017,  and 47/2017 ( Integrated Tax-Rate), dated 14th November 2017.

Q. What is the correct Harmonized System of Nomenclature (HSN) code and the applicable GST rate for our products MIDEL eN 1204 (rapeseed oil based dielectric transformer fluid) and MIDEL eN 1215 (soya oil based dielectric transformer fluid) in terms of Notification No. 1/2017-Central Tax (Rate) dated 28 June 2017?

Answer. The product would fall in schedule entry 27 of Schedule 11 of the Notification No. 1/2017 6% each of Central/State Tax (Rate) under Tariff Heading 1518 and thereby taxable Central Goods and Services Tax and Maharashtra Goods and Services Tax.

i. By virtue of tripartite agreement between NDDB, State Government & Unions, whether the arrangement between NDDB and Unions would be considered as supply between ‘related persons’ in accordance with Schedule 1 of the Central Goods & Service Tax Act, 2017?

ii. Assuming answer to above point is affirmative, whether the applicant would be required to determine value of activities undertaken by them in accordance with Section 15(5) of CGST Act, 2017 read with Rule 28 of the CGST Rules, 2017?

Various issues on errection of solar power generating system; Applicability of Notification.No. 01/2017, Entry : 234

Q.1. Whether GST is applicable on Liquidated Damages in case of -

Type1 ie. Operation & Maintenance activities

Type2 ie. Construction of new power plants or renovation of old plants or is applicable in both cases?

A.1. In terms of the aforesaid agreement, GST would be applicable on the Liquidated Damages.

Q2. If GST is applicable, kindly clarify the following related aspects also

Q2A. Whether the GST on Liquidated Damages is covered under Schedule II entry No 5(2)(e) vide HSN code 9997-Other Services rate 18% is correct or any other entry is relevant?

Question -1 -Determination of GST leviable on operation and maintenance work order given by such Municipal Corporation.

Answer: Under GST Act, 2017, their services attracted CGST & SGST @ 9% each with effect from 01.07.2017 and CGST & SGST @ 6% each with effect from 22.08.2017. Post 25.01.2018, their services would be exempt only subject to fulfilment of conditions that the value of supply of goods does not exceed 25% of value of composite supply

Question-2- Admissibility of ITC (input Credit tax) of purchases against such work order.

Answer:- The applicant is eligible for availing ITC (input Credit Tax) of purchases against such work order under the GST Act/Rules subject to the terms and conditions mentioned in section 16 to 22 of the GST ACT and rules 36 to 45 of the GST Rules 2017.

Question - 3 Determination of responsibility of municipal authority of discharging such CST Liability payable to the contractor.

Answer: The liability to pay GST is on the supplier, being a legal liability and no comments are offered in respect of recovery or otherwise from the recipient.

Question - 4 Further, we seek guidance from GST Council/Appropriate authority towards applicability of GST on Service Contract where labour job Contribute 95% to 98% if Contract Value and 2-3% as Oil and Lubricant and pertains to consumable Purchase to operate the Existing Plant.

Answer: Under GST Act, 2017, their services attracted CGST & SGST @ 9% each with effect from 01.07.2017 and CGST & SGST 6% each with effect from 22.08.2017. Post 25.01.2018, their services would be exempt only subject to the fulfilment of condition that the value of supply of goods does not exceed 25% of value of composite supply.