Authority for Advance Ruling (AAR)

Whether the product ‘Fusible Interlining Fabrics of Cotton’ is correctly classifiable under Chapter 52 or Chapter 59?

Q.1  Whether the product Non Woven Bags manufactured through the intermediate product Non Woven fabric classifiable under Heading No. 5603 are properly classifiable under Heading No. 6305 or under Heading No. 3923?

Q.2. Whether the product Non Woven Bags would be eligible for exemption under Notification No. 01/2017-CT (Rate) and 01/2017-I.T. (Rate) dated 28.06.2017 as amended?  

Q.1  Whether the product Non Woven Bags manufactured through the intermediate product Non Woven fabric classifiable under Heading No. 5603 are properly classifiable under Heading No. 6305 or under Heading No. 3923?

Q.2.  Whether the product Non Woven Bags would be eligible for exemption under Notification No. 01/2017-CT (Rate) and 01/2017-I.T. (Rate) dated 28.06.2017 as amended? 

Q.1.Whether the product Non-woven bags manufactured through the intermediate product Non-woven fabric classifiable under Heading No.5603 are properly classifiable under Heading No.6305 or under Heading No.3923?

Q.2.Whether the product Non-woven bags would be eligible for exemption under Notification No.01/2017-Central Tax(Rate) dated 28.06.2017 as amended?

Q. 1.Classification of goods and determination of tax liability of product under HSN 2919 of following goods :

Calcium-3-methyl-2oxo-valerate (Alpha-Ketoanalogue Isoleucine Calcium Salt),

Calcium-3-methyl-2oxobutyrate (Alpha-KetoanalogueValine Calcium Salt),

Calcium-4-methyl-2oxo-valerate (Alpha-KetoanalogueLeucine Calcium Salt),

Calcium-DL-2-hydroxy- 4 (Methylthio) butyrate (Alpha-Ketoanalogue Methionine Calcium Salt),

Calcium -2 oxo-3-phenyl propionate (Alpha-Ketoanalogue phenylalanine Calcium Salt)

Q.1.When landlord charges electricity or incidental charges in additional to rent as per Lease Agreement for immovable property rented to the tenant, is landlord liable to pay GST on electricity or incidental charges charged by it?

Q.2 Can electricity charges paid by landlord to Torrent Power Ltd. (the supplier of electricity) for electricity connection in the name of landlord and recovered based on sub meters from different tenants be considered as amount recovered as pure agent of the tenant when the legal liability to pay electricity bill to Torrent Power Ltd. is that of landlord?

1.Whether Design and Comprehensive Consultancy Services from concept to completion for State-of-Art High rise office building provided to Surat Municipal Corporation covered under Entry No.3 of Notification No.12/2017-Central Tax(Rate) dated 28.06.2017.
2.Whether Consultancy Services for preparation of design and detailed estimation of town hall at Dehgam, provided to Ahmedabad Urban Development Authority covered under Entry No.3 of Notification No.12/2017-Central Tax(Rate) dated 28.06.2017.
3.Whether Medical and Design Consultancy Services for establishment of Medical College, Teaching Hospital and Nursing College at Pune, provided to Pune Municipal Corporation covered under Entry No.3 of Notification No.12/2017-Central Tax(Rate) dated 28.06.2017.
4.Whether work of Preparation of Master Plan of Green Field Areas and Project Management Consultancy Work for Development of Green Field Areas provided to Rajkot Smart City Development ltd. covered under Entry No.3 of Notification No.12/2017-Central Tax(Rate) dated 28.06.2017.
5.Whether Consultancy Services for Architectural and Engineering design/working drawing of Baramati Hospital provided to Executive Engineer, Public Works(East) Division, Pune covered under Entry No.3 of Notification No.12/2017-Central Tax(Rate) dated 28.06.2017.
6.Whether Consultancy service to Gujarat Technological University for Architectural design/engineering design, working drawing, Structural analysis and drawings, electrical drawings and details of all services for phase wise construction of building for proposed project can be covered under Entry No.3 of Notification No.12/2017-Central Tax(Rate) dated 28.06.2017 and Gujarat State Notification No.12/2017-ST(Rate) dated 28.06.2017.

Q-1 Under Chapter 85  what is the correct 4 digit HSN  code classification  for solar  power generating system?

Ans-The 4 digit HSN Code of ‘’Solar power Generating System’ is 8541.

Q-2 What constitutes solar power generating system 85. what are the various components and technical requirements That together constitutes solar power generating System under Chapter 85?

Ans- ‘’Solar Panel, Inverter ,Controller and battery are essential  elements of  “solar power generating System” and supply of aforesaid four items  as a whole would cover under the “solar power generating System” But cable & monitoring structures are also supplementary elements of “solar power generating. System”

Q-1Whether there is a supply of service by the applicant  Corporation in recovery of expenses  from DISCOMs as well as UPPTCL and other power companies by way of book entries and hence , liable to GST.

ANS-1 The Application  is liable to pay GST on the  O&m Expenses charged from its  subsidiary companies.

Q-2 Whether inclusion clause in subsection (2) of section 15 of CGST Act, 2017 providing for inclusion of incidental expenses in value of supply apply to applicant’s  case (i.e recovery, by way of book entries, of O&M expenses from DISCOMs as well as UPPTCL and other power companies)when there is no supply of a service by the Corporation to the DISCOMS as well as UPPTCL and other power companies so as to make the stated recoveries from DISCOMS UPPTCL and other power companies liable to GST, if answer to question 1 is negative.

ANS-2 As the supplies have been held as taxable as per  1 above the no2 becomes infructuous.

Q-3 If the answer to (i) or (ii) is in affirmative whether recovery against  certain  expenses such as  interest cost, salary, depreciation etc. which do not attract GST due to either they being exempt or non taxable will also be liable to GST.

Ans- With regard to the specific heads as mentioned in the question no.3 The GST would be chargeable

Q-4 Whether Transfer of miscellaneous incomes of Applicant  Corporation  To DISCOMS UPPTCL and other power companies liable to GST.

Ans- Income shared with the subsidiaries by the Applicant  would also be Chargeable to GST.

1.For the purpose of arriving at the value of rental income, whether the applicant can seek deduction of property taxes and other statutory levies.
2. For the purpose of arriving at total income from rental, whether notional interest on the security deposit should be taken into consideration.3.Whether the applicant is entitled for exemption of tax under the general exemption of Rs.20 lakhs.