Authority for Advance Ruling (AAR)

Is GST applicable on government subsidy ? How to Generate GST including Subsidized invoices?

Advance ruling regarding HSN Classification of the Fortified Rice Kernels(FRK)"and the rate of tax applicable on its supply under GST Law.

a).Whether the subsidized deduction made by the Applicant from the employees who are availing transportation services and/or canteen services within the factory would be considered as a "supply by the Applicant under the provisions of Section 7 of Central Goods and Service Tax Act, 2017 and Karnataka Goods and Service Tax Act, 2017.

b).In case answer to question no. 1 is yes, Whether GST is applicable on the amount paid by the Applicant to the Service Providers or only on the amount recovered from the employees?

i.Whether Notification No. 7/2022-Central Tax (Rate), dated 13-07-2022 applies to Coir-Pith Compost (HSN 53050040) mentioned in serial number 132-A of the Notification No.2/2017-Central Tax (Rate) dated 28-06-2017 as amended vide notification No.19/2018-Central Tax (Rate), dated 26-07-2018?

ii.The registered person sells coir-pith compost in 30 kg and above quantity bags with un-registered brand name "SURYA". In such cases, whether the registered person is liable to tax under the GST Acts?

iii.If the coir-pith compost in 30kg and above quantity bags are sold without any label (in plain bags), whether would it attract GST?

iv.If the registered person sells coir-pith compost in 25 kg and less pre-packed and labelled bags to nurseries who buys for consumption, whether in such cases GST is payable?

v.Whether the nurseries, who are un-registered dealers, come under the definition of "Institutional consumers"?

vi.If the registered persons sells cor pith compost with 30Kg and above pre-packed and labelled bags to nurseries who buys for consumption, whether in such cases GST is payable?

vii.Rule 3(b) of Legal Metrology (Packaged commodities) Rules, 2011, provides that the provisions of Chapter of that Rules shall not apply" to cement, fertilizers and agricultural farm produce sold in above 50 kg bags. Whether the coir-pith compost, which is also the bio fertilizer, sold by the registered person ells under this category and exempt from GST?

Appellate Authority  reject the appeal filed by the Assistant Commissioner of Central Tax, Bangalore South Commissionerate and uphold the ruling given by the Authority for Advance Ruling in KAR ADRG 31/2022 dated 8th September 2022.

Whether GST Rate and HSN applicable to the monthly lease fees received from customers for leasing pre-owned Cars would be determined in accordance with serial no. 17 (vija) of Notification No. 11/2017-Central Tax (Rate) dated 28- 06-2017 read with Notification No. 08/2018-Central Tax (Rate) dated 25th January 2018 If not, then what would be said GST rate and HSN so applicable on the said transaction? Whether Compensation cess applicable to the monthly lease fees received from M customers for leasing of pre-owned Cars C would be determined in accordance with J serial no. 42A of Notification No. 01/2017- Compensation cess (Rate) dated 28th June 2017? If not, then what about the said Compensation cess so applicable on the said transaction?

Application has been withdrawn.

1.Whether GST would be leviable on export of pre-packaged and labelled rice upto 25 Kgs, to foreign buyer?

2.Whether GST would be applicable on supply of pre-packaged and labelled rice upto 25- Kgs, to exporter on "bill to ship to" basis i.e., bill to exporter and ship to customs port. Exporter ultimately exp01ts the rice to foreign buyer.

3.Whether GST would be applicable on supply of pre-packaged and labelled .rice upto 25 Kgs, to the factory of exporter. Exporter will export the rice.

I.Since the Government of Kamataka holds 99.99% of equity in the Corporation, whether the Corporation is considered as "Governmental Authority" or "Local Authority"?

ii.Since the Corporation is fully owned by the Government of Karnataka and audited by the Comptroller and Auditor General of India, whether filing of Annual Return in Form CSTR-9 and Form GSTR-9C is exempt under the Second Proviso to Section 44 of the CGST and KGST Acts?

iii.Whether the Corporation is eligible to claim input tax credit on the inward supply of goods and services, which are capitalized in the books of accounts?

iv.Whether the Corporation is eligible to claim input tax credit on the inward supply of services against output taxable supplies of support and auxiliary services and other supply of taxable goods?

V.Whether the Corporation is eligible to claim input tax credit (on inputs, input services and capital goods) proportionately on the taxable output supply of support services and goods (scrap etc.) as per the provisions of Rule 42 and 43 of the CGST and KGST Rules?

vi.Whether the Corporation is eligible to claim taxes paid under RCM, as input tax credit?

vii.Whether Additional Surcharge collected from Open Access Consumer as per sub section (4) of Section 42 of the Electricity Act, 2003, clause 8.5.4 of the Tariff Policy 2016. Clause 5.8.3 of the National Electricity Policy and Clause 11 (vii) of the KERC (Terms and Conditions for Open Access) Regulations, 2004, is taxable under the GST Acts 2

vii.Whether "Wheeling and Banking Charges allowed by Commission (KERC) as 5% and 2% of the energy input into the distribution system by Open Access consumer is taxable under the GST Acts?

a. Whether the purchaser is entitled to claim Input Tax Credit on the purchases made by it from the seller who had discharged its tax liability but the preceding seller has not discharged its liability under the Act?

b. If answer to the above is in negative, then how the purchaser will ensure that the tax liability has been discharged by all the sellers falling in the queue of the transaction?

c. Whether the purchaser would be eligible for the ITC since no infrastructure has been provided by the Govt. in order to ensure discharging of tax liability by the sellers falling in the queue of a transaction?

d. Whether the purchaser is entitled to claim Input Tax Credit on the purchases made by it from the seller in the event of non-payment of tax by the seller even though the purchaser is in possession of the invoice, other relevant documents and the payments have been made through banking channels and there is no connivance or collusion between the purchaser and seller?