Authority for Advance Ruling (AAR)

M/s. Imperial Graphics Private Limited is a Private Limited Company providing various services including Leasing out of properties. The Applicant is the owner of two residential property situated at No.70 and 71 Sri Balaji Nagar, Kalapatti, Coimbatore 641048 and has been remitting property tax dues regularly in Assessment Nos.162/008/908303, 162/008/908304 and 162/008/908305 and 162/008/910964. The Applicant leased out the building property situated at No.70, Sri Balaji Nagar, Kalapatti, Coimbatorc-641048 to DR NGP Research and Educational Trust, Coimbatore since 2023 by way of a RentaNo. 63/ARA/2025, dated 17.12.2025l Agreement renewable yearly for the purpose of Hostel facility. At present, there are 60 students of the college run by the Educational Trust, who arc occupying the hostel. The Applicant is yet to lease out the residential property situated at No.71, Sri Balaji Nagar, Kalapatti, Coimbatore-641048 to the Applicant's Tenant namely, Dr NGP Research & Educational Trust, Coimbatore. The Applicant's Tenant is an Educational Trust and the Applicant's tenant has been running a residential hostel with a philanthropic motive and purpose for providing a safe, secure, and a "home away from home" environment for college students.

The issue involved determination of whether the applicant is required to obtain separate GST registration in the State of Rajasthan for execution of a turnkey substation project.

The issue involved determination of whether various services procured by the Board, which are directly and exclusively related to the conduct of examinations, qualify for exemption under GST law. The applicant sought clarity on applicability of exemption to outsourced services forming an integral part of the examination process. The ruling examined whether such services fall within the scope of “educational institution”–related exemptions.

The issue involved classification of paper bags under the Customs Tariff and determination of the applicable GST rate. The applicant sought clarity due to overlapping entries under different schedules of the rate notification. The ruling examined whether paper bags are covered under a specific concessional entry or fall under a general residual category.

1. Classification/HSN: Whether the Applicant's biodegradable bags are classifiable under Chapter 39 (if of plastic/compostable polymer) or Chapter 48 (if of paper), and the appropriate HSN therein.

 2. Rate of tax & applicability of notification: Whether supplies of the said biodegradable bags are covered by the entry "Paper Sacks/Bags and bio-degradable bags" (Ch. 39, 48) in Schedule I of Notification 9/2025-CTR, attracting 5% GST (2.5% CGST + 2.5% SGST), w.e.f. 22-Sep-2025.

The applicant is engaged in supply of food and beverages to Corporates. The applicant neither prepares the food and beverages nor serves them in the Client's canteen; they procure it from third-party sources in a packed condition and supply it to their clients through outsourced logistics provider. The serving of food in the canteen is managed by the client.

The Applicant is currently in the process of construction of a mall/commercial complex with the intention of leasing/renting out the entire premises. For this purpose, the applicant will incur expenses on various goods and services, including construction materials, contractor services, architect fees, etc. The applicant wishes to claim ITC on such inputs and input services used in the construction of the building intended to be rented out.

M/s. Kangayam Coconut oil Manufacturers Association, having principal place of business at No. 171, Tiruppur Road, Kangayam - 638 701 (hereinafter called as the "Applicant") are registered with GSTIN 3ЗААЕАКK3571F1ZV under the goods and services tax Act. They have filed application for advance ruling through online portal under Section 97 of the CGST Act, 2017, and corresponding provisions under the Section 97 of TNGST Act, 2017 vide ARN AD3310190030312, dated 26.10.2019.

 2) But, application has not been filed manually as mentioned in the Rule 107A of the CGST Rules, 2017. Hence, a notice was issued on 22.10.2025 and 21.11.2025, to the applicant requesting to file manual application with proof for payment of application fee of Rs.5000/- under SGST Act and Rs.5000/ under CGST Act along with supporting documents/records as applicable. However, the applicant has not filed the manual application along with payment proof. 

3) On verification of GST portal, the applicant has paid the fee of Rs.5000/- under SGST Act, 2017 only, and not paid the fee of Rs.5,000/- under CGST Act 2017 as prescribed under Section 97(1) of CGST Act 2017. Hence, the application is liable for rejection under Section 98(2) of CGST 2017. 

4) On receipt of the notice from this Office, the applicant vide their letter dated 02.12.2025, have requested to permit them to withdraw the Advance Ruling Application, as their issue was resolved.

A. Admissibility of Input Tax Credit (ITC) on Direct Expenditures for Second-Hand Vehicles. (i) In view of the Notification No. 8/2018-Central Tax (Rate) dated 25th January 2018, the applicant would like to get clarification as to whether the input tax credit would be available on inward supplies of goods or services which are in the nature of direct expenditures like spare purchases, repairs and refurbishment costs of vehicles, etc., except on purchase of old or used motor vehicles as mentioned in para 2 of the notification.

 B. Admissibility of Input Tax Credit (ITC) on Other Common Business Expenses and Capital Goods. (ii) In view of the Notification No. 8/2018-Central Tax (Rate) dated 25th January 2018, the applicant would like to get clarification as to whether the input tax credit would be available on inward supplies of other goods or services except on purchase of old or used motor vehicles as mentioned in para 2 of the notification. That is, whether credit of input tax available on inward supplies of goods or services like office/ showroom rent, telephone, advertisement, professional charges, capital goods, etc., except that on inward supply of old or used motor vehicles.

(i) Whether GST is applicable on the centage charges collected being the centage charges levied for consulting services provided to a Government entity which is covered under Article 243G/243W of the Indian constitution (12th schedule) 

(ii) Whether the company can claim refund of GST already paid for the year 2017-18 onwards?