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Top 10 GST Advance Tax Rulings of 2018

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Top 10 GST Advance Tax Rulings of 2018

There were a lot of changes in the one and a half year old Goods and Services Tax (GST) regime in the year 2018. We have witnessed lots of Advance rulings in 2018. Here is the Top 10 Advance ruling on GST delivered last year.

1.GST Applicable on activities performed by employees at corporate office
GST Applicable on the activities performed by employees at corporate office in the course of or in relation to employment such as accounting, other administrative and IT system maintenance for the units located in the other states as well i.e. distinct persons shall be treated as supply as per Entry 2 of Schedule I of the CGST Act. : - THE AUTHORITY ON ADVANCE RULINGS IN KARNATAKA GOODS AND SERVICE TAX

Read full ruling here http://gst.kar.nic.in/Documents/General/15_COLUMBIA_ASIA_HOSPITALS.pdf 

2.GST Applicable on the value of building constructed and handed over to the land owner in terms of the Joint Development Agreement. 
The value on which the applicant is liable to pay GST is to be determined in terms of para of Notifications No. 11/2017-Central Tax (Rate) dated 28.06.2017.Applicant is liable to pay service tax/GST proportionate to the services provided before /after 30.06.2017 respectively. : - THE AUTHORITY ON ADVANCE RULINGS IN KARNATAKA GOODS AND SERVICE TAX 

Read full ruling here: http://gst.kar.nic.in/Documents/General/AAR30_NforceInfrastructureIndiaPvtLtd.pdf

3.GST Applicable on Back offices of multinationals, and Indian companies offering back-office services to MNC
Such companies are intermediaries must therefore pay 18% GST. The taxpayer was involved in many activities -- accounting, liaising activities with supplier, follow up for shipping bill documents, raising payment requests and managing various documentation requirements associated with supply. The AAR held that these activities qualify as intermediary services and would not qualify as export of services and would be charged @18% GST. THE AUTHORITY ON ADVANCE RULINGS IN MAHARASHTRA GOODS AND SERVICE TAX

Read full ruling here: 
https://www.mahagst.gov.in/sites/default/files/ddq/GST%20ARA%20ORDER-VSERVGLOBAL%20PVT%20LTD.pdf 

4.GST Applicable on Ocean Freight
The applicant is liable to pay IGST on transportation of goods by vessel under Reverse Charge Mechanism (RCM) under Notification No. 10/2017 –Integrated Tax (Rate) dated 28-06-2017. : - THE AUTHORITY ON ADVANCE RULINGS IN RAJASTHAN GOODS AND SERVICE TAX

Read full ruling here: 
http://gstcouncil.gov.in/sites/default/files/ruling-new/Raj.14.2018-19%20-CFCL.pdf

5.GST Applicable on activity involved in the exam support service 
GST Applicable on activity involved in the exam support service as proposed at schedule-I part-A and B of the proposed agreement constitute a composite supply. the principle supply is conducting of IELTS exam it is covered under Service Code 999299 Group 99929 and Heading 9992 as education support service and therefore taxable @ of 18% (9% CGST and 9% HGST) vide sr. no. 30 of notification no.11/2017 Central Tax (Rate) dared 28.06.2017 and corresponding State notification no. 46/ST-2 Dt. 30.06.2017.

THE AUTHORITY ON ADVANCE RULINGS IN HARYANA GOODS AND SERVICE TAX Read full ruling here: http://gstcouncil.gov.in/sites/default/files/ruling-new/Haryana-AR%2011_2017-18%20dt.01.06.18%20BCEESIPL.pdf 

6.GST Payable on Penal Interest for default in EMI payment
Exemption for financial transactions under GST laws is only in respect of the interest/discount earned or paid for loans, deposits or advances. If the transaction, as in the subject case deviates from the above the same fails the test of being a ‘loan’, ‘deposit’ or ‘advance’, or the consideration is not an interest or discount, the exemption is not admissible. THE AUTHORITY ON ADVANCE RULINGS IN MAHARASHTRA GOODS AND SERVICE TAX

Read full ruling here: https://www.mahagst.gov.in/sites/default/files/ddq/GST%20ARA%20ORDER-22.%20BAJAJ%20FINANCE%20LTD.pdf 

7.GST Applicable on activity of building and mounting of body on BUS Chassis
The Activity of building and mounting of the body on the chassis provided by the principal under FOC challans will result in supply of services under HSN 9988 and hence, should be taxed @ 18% GST. THE AUTHORITY ON ADVANCE RULINGS IN GOA GOODS AND SERVICE TAX

Read full ruling here:
http://gstcouncil.gov.in/sites/default/files/ruling-new/Goa-GAAR-1%20dt.21.08.2018_ACGL.pdf 

8.GST Applicable on providing complementary tickets free of charge
GST Applicable on the applicant of providing complementary tickets free of charge to some person would be considered supply of service as per provision of both section 7(1) (a) and 7(1) (d) and would therefore be leviable to tax as per provision of section 9 of the CGST Act,2017. The applicant would be eligible to claim of Input tax credit as per the provisions of Section 16 of the CGST Act.
THE AUTHORITY ON ADVANCE RULINGS IN Punjab GOODS AND SERVICE TAX

Read full ruling here: http://gstcouncil.gov.in/sites/default/files/ruling-new/Punjab%20AAR.02-2018%20dated%2020.08.18%20KPHDCPL.pdf 

9.GST Applicable on Post sale discount
In a setback to the common market practice of trade discounts, the Authority for Advance Rulings (AAR) of Maharashtra has ruled out GST refund in the case of post-sales discounts offered by manufacturers to dealers. THE AUTHORITY ON ADVANCE RULINGS IN MAHARASHTRA GOODS AND SERVICE TAX

Read full ruling here: 
https://www.mahagst.gov.in/sites/default/files/ddq/GSTARA-RDER_ULTRATECH%20CEMENT%20LTD.pdf 

10.GST Applicable on EPC Contract
Uttarakhand AAR Says Solar Modules and Components to Attract 5% GST, while Maharashtra State Authority of Advanced Ruling (MSAAR) stated that the supply of turnkey engineering, procurement and construction (EPC) contract for the construction of a solar power project in which both goods and services are supplied cannot be interpreted as a composite (a mix of components which make up a solar project) supply contract. Instead GST will be applicable at individual component rates.

THE AUTHORITY ON ADVANCE RULINGS IN MAHARASHTRA GOODS AND SERVICE TAX Read full ruling here: https://www.mahagst.gov.in/sites/default/files/ddq/GIRIRAJ%20RENEWABLES%20PVT.%20LTD.pdf

THE AUTHORITY ON ADVANCE RULINGS IN Uttarakhand GOODS AND SERVICE TAX Read full ruling here
http://gstcouncil.gov.in/sites/default/files/ruling-new/Uttrakhand%2007-2018-19%20Dtd%2028-08-18_EGL.pdf

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About Manoj Jain

Manoj

Manoj Jain, a CA and CS, has been working with IRIS for over 8 years and is currently one of the key subject matter experts for IRIS’ GST compliance offerings. He also has been guiding the clients for GST law related matters. Before GST he was handling US compliance analyzing US financial statements and reviewing XBRL filings for US and India market. He enjoys listening to music and traveling.

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Shilpa Dhobale 7 months, 1 week ago

Great work. Keep it up.

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Vicky 6 months ago

Hello Admin!
Such a great and informative post indeed on "GST", I really appreciate it!
Keep updating stuffs like this........

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admin 5 months, 4 weeks ago

Thanks so much! Please follow our social media channels for regular updates.

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Hemalatha Saptarshi 4 months, 3 weeks ago

Very informative !

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