Authority for Advance Ruling (AAR)

1.   To set aside the impugned Notice DRC-01A dated 14.10.2024, proposing to levy higher rate of tax @ 18% and tax due of Rs.41501156 

2. To provide us with an opportunity of being heard in person 

3. To allow us to add or alter any submissions made herein and adduce additional grounds at the time of hearing this appeal

Classification Required with to HSN Code of Input goods used in our Manufacturing.

Whether Applicant can consider the said body building activity as "job work activity and regard it as "Supply of Services" falling under SAC Code - 998881 - "Motor vehicle and trailer manufacturing services "(as per Notification No. 11/2017-CT(Rate), dated 28.6.2017 Sl. No.535) If it is regarded as "job work activity" and "Supply of Services, whether the correct applicable rate of GST, will be at 18 % (9 +9) as applicable under Sl. No.26 (ic) or will it be 18% (9 + 9) as applicable under Sl. No.26 (iv).

1. Classification of Goods and Tax Rate What is the correct HSN Code and the applicable rate of tax under the Goods and Services Tax (GST) for the construction toys manufactured by our company, which are made primarily of plastic? Based on our understanding, the toys we intend to manufacture fall under Sl.No.228 of Chapter/Heading/Sub-Heading/Tariff /HSN Code 95030030 and are subject to a GST rate of 12%. 

2. Applicability of Notifications under the CGST and TNGST Acts Please clarify the applicability of Sl.No, Chapter /Heading / Sub-Heading/ Tariff item of the notifications issued under the provisions of the CGST Act/TNGST Act, 2017 for goods that are to be manufactured by us.

1. ITC credit will be adjusted in the books of accounts – outstanding payable amount?

 2. ITC erroneously transfer will be eligible for refund?

The Applicant is the holder of GST Registration No. 08ABXFA7290E1ZX and is inter-alia engaged in the business of spice manufacturing and trading, contributing significantly to the supply chain in the FMCG sector. The firm’s monthly taxable turnover exceeds Rs. 50 lakhs, thereby prima facie making Rule 86B applicable.The application has been filed by the applicant seeking whether the total income tax paid by the firm and its partners be considered for the exemption under Rule 86B. Also, If no single partner has paid more than ₹1 lakh in tax, but the firm and partners together have, does the exemption still apply.

The Applicant is the holder of GST Registration No. 08AATFB8617M1ZO and the applicant entered into an Agreement to provide the pure labor Construction Services to M/s BCM BUILDERS LLP.M/S BCM Builders LLP has entered into a contract with Rajasthan Government to construct 380 flats under "Affordable Housing Scheme under Pradhan Mantri Awas Yojna" (including Material and Labor). The application has been filed by the applicant seeking whether the entry number 10 of the Notification No. 12/2017-Central Tax (Rate) dated 28.06.2017 is applicable on the services of "Pure Labor" provided by the applicant.

Query-1: Whether goods carriage given on lease to Goods Transportation Agency is a taxable supply?

 Query-2: If the above mentioned supply is an exempted/nil rated supply, are there any conditions to be satisfied to avail that exemption? 

Query-3: Whether the service provider has to be goods transportation agency to avail the above mentioned exemption or it can be any other person?

Whether the input tax credit is available on construction of building, purchase of interiors, purchase of furniture, Lift, Air-conditioners, generators and other miscellaneous goods and services which are given to provide output service of rental business. The applicant furnished the list of goods and services on which he wished to take ITC.

1) Does barter exchange procedure operate for B2B transactions when payments are made without bank transactions? 

2) When a job worker is not registered under GST, does the Reverse Charge Mechanism (RCM) apply?