Authority for Advance Ruling (AAR)

(i) Whether the applicant can avail the Input Tax Credit of the full GST charged on invoice of the supply or a proportionate reversal of the same is required in case of post purchase:

a. Cash discount for early payment of supply invoices (bills) given by the supplier of goods to the applicant without adjustment of GST.

b. Incentive/schemes provided through credit note without adjustment of GST by the supplier to the applicant.

(ii) Whether GST is leviable on cash discount offered by supplier to applicant through credit note without adjustment of GST for making the early payment from the date stipulated for payment of such supply as output supply? If yes, then what is the applicable HSN and rate of GST?

(iii) Whether GST is leviable on incentive/schemes provided through credit note without adjustment of GST by the supplier to the applicant (dealer) as output supply? If yes, then what is the applicable HSN and rate of GST?

Whether the product ‘Non-Dairy Cream’ manufactured by the Applicant is covered under CH 1517 90 90 or under CH 2106 90 99 of the GST Tariff?

Whether Prepared Laboratory Reagents imported and supplied by the Applicant and classified under CTH 3822 00 90 of the Customs Tariff Act, 1975 are covered under Entry 80 of Schedule Il of the Notification No. 1/2017-Integrated Tax (Rate) dated June 28, 2017 attracting levy of Integrated Tax at the rate of 12%?

(a)  Whether the GST would be payable on recoveries made from the employees towards  providing canteen facility at subsidized rates in the factory and office?

(b)  Whether the GST would be payable on the recoveries made from the employees towards providing bus transportation facility? If yes, whether the Applicant is exempted under Notification No. 12/2017 Central Tax (Rate)?

(c)  Whether the GST would be payable on the notice pay recoveries made from the  employees on account of not serving the full notice period?

1. Due to Pandemic and uncertainty, the exhibitors who paid the advance space rentals in FY 19-20 (including GST) to society needs refund back now and accordingly based on the facts and submissions explained herein above and now exhibition is postponed to be held in December 22, the limitation period u/s 34 of CGST Act 2017 will expire in September 23 and accordingly refund of GST to participants whether will not hit by limitation period u/s 34 of CGST Act 2017 with respect to the year when advance was received because no supply is made and tax invoice is not issued nor the exhibitors took credit of GST in their tax returns because it was a advance payment only and they can take credit of GST on the basis of tax invoice only.

2. An advance is received by applicant for a Service contract which got cancelled subsequently. The applicant has issued receipt voucher and paid the GST on such advance received. Whether he can claim refund of tax paid on advance or he is required to adjust his tax liability in his returns.

3. Since ITME Society does not have any other income source other than exhibition and due to postponement of exhibition, there was no income for last 2 years and society won’t have income until next event. ITME Society should get GST credit without any time limit. For e.g. If India ITME Society decide not to organize the event in December 2022 due to Covid 2019 and we are of considered opinion that India ITME Society has paid the GST tax on the advance received from the party and the party has not availed the tax credit because of certain restriction as envisaged in section 16 of the CGST Act 2017. Under the circumstances, the India ITME Society should refund the amount to their customer members with GST and the society should either get tax refund or deduct the amount of GST paid on such transaction from their future tax obligation without any time constraints mentioned in Section 34 of CGST Act 2017.

This Authority is of opinion that the current application is not covered within the scope of Section 97 of the CGST Act, 2017 as such the same is not covered under the ambit of Authority for Advance Ruling. As the questions raised do not fall within the mandate of Authority for Advance Ruling, the application is therefore disposed of as such.

Whether the supply of service provided by the applicant to Food & Supplies Department, Govt. of West Bengal by way of milling of food grains into flour for distribution of such flour under Public Distribution System is eligible for exemption under entry No. 3A of Notification No. 12/2017-CentralTax (Rate) dated 28.06.2017 and what shall be rate of GST on such milling, if it does not fall under entry No. 3A?

i. Applicability of GST on Insurance premium paid towards launch services.
Ii. Applicability of MoF Notification No. 09/2017-Integrated Tax (Rate) dated: 28-06-2017

i. Whether the tax invoice proposed to be issued by the assesse satisfies section 31 of GST Act?
ii. Whether the tax invoice proposed to be issued by the assesse satisfies Rule 46 of GST Rules?
Iii.  Whether the total amount (inclusive of GST) shown in the main portion of the bill be interpreted as the taxable value under section 31 of GST Act and Rule 46 of GST Rules?

Withdrawal of application for advance ruling