माल और सेवा कर परिषद Goods & Se₹vices Tax Council

Q1. How to avail input tax credit for excise duty paid under Rule 3(58) of the Cenvat Credit Rules?

Ans Not answered as this question is withdrawn by the applicant at the time of proceedings of hearing of the case.

Q2 Whether they are eligible to avail input tax credit against unutilised cenvat credit such as Education cess, Secondary & Higher secondary Education cess & Krishi Kalyan cess lying in our books of Accounts?

Ans. Answered in the negative.

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.

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.

Case I

Q. Whether on the facts and circumstances of abovementioned case can the above activity be called as canteen activity and the applicable rate of 5% be charged on our bills?

Answered in the negative.

Case II

Q. Can both the activities put together i.e. supply and distribution of food to the employees of 'A' Ltd. be called as canteen services and applicable rate of 5% be charged on our bills?

Answered in the negative.

Case III

Q. Under such circumstances can it still be claimed that Merit Hospitality is running a canteen and the applicable rate of 5% be charged on our bills?

Answered in the negative.

Case IV

Q.A. Can Merit Hospitality claim that since the food is supplied directly to SEZ area hence no GST is applicable?

A.a. In view of the findings above the said question cannot be answered.

Q.b. Can Merit Hospitality claim that it is running a canteen in SEZ area hence no GST is Applicable?

A.b. In the view of detailed discussions above, The question answered is negative.

Q.c. Can Merit hospitality claim that it is running a restaurant in SEZ area and hence applicable GST rate is 5% only?

A.c. In the view of the detailed discussions above the question is answered in the negative

1. Whether the whole (Sheep/Goat) animal carcass in its natural shape in frozen state  in different weight and size packed in LDPE bags without mentioning the weight and one or two such LDPE bags further packed in HDPE bags being supplied to Army by applicant against tender shall qualify as product put up in “unit container”?

2. Whether the products as mentioned in query 1 shall be taxable under GST as per entry no. 4 of schedule II of the Notification no. 1/2017- Integrated Tax (Rate) dated 28th June 2017 upto 14th November 2017 and thereafter as per entry no. 1 of schedule I of the  Notification No. 43/2017-Integrated Tax (Rate) dated 14th November 2017 or fall under exemption list as per entry no 10 of Notification No. 2/2017-Integrated Tax (Rate) New Delhi dated 28th June 2017 upto 14th November 2017 and thereafter as per entry no. 9 of the Notification No. 44/2017-Integrated Tax (Rate) dated 14th November 2017?

A.1  Whether Marine Consultancy Service (“MCS”) provided to foreign ship owners constitutes "composite supply" with the principal supply of consultancy service?

A.2  Whether the place of supply of MCS (as a composite supply) will be determined in terms of Section 13(2)(a) of the Integrated Goods and Services Tax, 2017 (“IGST Act”), i.e. the ‘location of recipient of service’?

B.1  In the alternate, where services are provided to foreign ship owners distinctively as supply of consultancy service and support service with separate and demarcated fees for their consultancy service and for support service:

a. Whether consultancy service will qualify as business consultancy service in terms of the scheme of classification of services [Annexure to Notification 11/ 2017 – Central Tax (Rate), dated 28thJune, 2017]?

b. Whether the place of supply of such consultancy service will be the ‘location of recipient of service’ in terms of Section 13(2)(a) of the IGST Act?

c. Whether support service qualifies as “intermediary service” in terms of Section 2(13) of the IGST Act? And, if ruled that the support service qualifies as an intermediary service, the place of supply of support service as intermediary service will be the ‘location of supplier of service’ in terms of Section 13(8)(b) of the IGST Act?

Whether accumulated credit by way of Krishi Kalyan Cess (KKC) as appeared in the Service tax return of Input Service Distributor (ISD) ON June 30, 2017 which is carried forward in the electronic credit ledger maintained by the company under CGST Act 2017, will be considered as admissible input tax-credit?

To seek the classification of the PVC floor mat and the applicable rate of GST on the same

1. If the word TROPHY is specifically mentioned under 83062920, so can we sell all trophies made of any material  under this HSN?

2. If different code is allocated to trophies assembled of different material, I would like to know if there is a combination of different materials and about 75% (value terms) is getting used  of any one Raw Material, under which  HSN should we make bill ?