CA Manoj Nahata 
1. Whether the supply of ice-cream by the retail outlets would be treated as “supply of goods” or “supply of service” or “composite supply” and subject to GST accordingly?
Held: Supply of goods only
In case of Arihant Enterprise- AAR Maharashtra, the applicant is a partnership firm engaged in the business of reselling ice-creams in wholesale as well as retail sale packages. The applicant sell the ice-creams to its customers “as it is” without any further processing/alteration/structural or chemical change. The only source of revenue generation by the retail store of the applicant is by way of selling ice creams by means of retail packs and by way of Ice-cream scoops. The moot point is that whether the supply of ice-cream by means of retail packs and by way of Ice-cream scoops is a supply of ‘goods’ or supply of ‘service’?
The Authority observed the supply of applicant in two type-
I. Sale of Ice-creams in retail packs,
II. Sale of Ice-creams in Scoops.
In the case of sale of ice creams in tubs of 500 gms and at the MRP, it is sale of goods with no service being involved.
In the case of sale of ice-creams by scoops, the Authority observed that customer places the order from the menu and the same is delivered to them. In either of the cases, the ice-cream received by the applicant from the franchisor is supplied as it is to the customer and is sold at agreed rates, as mentioned on menu cards. No extra money is charged from the customers who are free to consume the ice-creams inside or outside the outlet. The dominant object even in the case of ice cream in scoops as in the subject case is a sale of goods. A reference to the case of Govind Ram and ors. Vs. State of Rajasthan and ors. AIR 1982 Raj 265 was made in this case.
The applicant’s outlets differ from the conventional restaurants. In restaurants, generally the customers go with the intention of ordering articles of foods for the purpose of consuming the same there only, which are then prepared and served by waiters, etc to the customers. Here the ice creams are sold in the same form as received by them and at agreed rates not exceeding the MRP and in most of the case said ice creams appear to be consumed outside the premises of the applicant.
Hence, the Authority held that in the given subject matter there is a transfer of title in ice creams from the applicant to their customers and therefore as per entry no. 1(a) of the Schedule II of the CGST Act, the subject transaction is nothing but a supply of goods.
2. Whether a restaurateur is entitled to pay GST@18% (CGST-9% and SGST-9%) and claim input tax credit?
Held: No
In case of M/s Coffee Day Global Limited-AAR Karnataka, the applicant is in the business of running restaurants under the name and style of Cafe Coffee Day where non-alcoholic beverages and food items are served. Notification No.46/2017 dated 14.11.2017 provides that restaurants can pay GST @5% (CGST-2.5% and SGST-2.5%), provided they do not avail input tax credit of the tax paid on input goods and services. Notification No.11/2017dated 28.06.2017, at Sl.No.35, provides for levy of GST @18% (CGST-9% & SGST-9%) on supply of unclassified services and the suppliers are entitled to take input tax credit in the circumstances where they pay output tax. The moot point is that whether Notification No.46/2017 dated 14.11.2017 creates a compulsion on the restaurateurs to pay 5% GST without availing ITC?
The applicant contends that Notification No.46/2017 dated 14.11.2017 applies in circumstances where the applicant does not avail input tax credit. It does not prevent a restaurateur from paying tax at 18% (CGST – 9% and SGST – 9%) and availing input tax credit. Therefore the said notification is applicable only in circumstances where the supplier does not claim input tax credit and it would not apply in the circumstances if the supplier wants to avail input tax credit. If the restaurateur avail input tax credit, the transaction would get classified under Sl.No.35 of Notification No.11/2017 and chargeable to tax at 18% (CGST – 9% and SGST – 9%). Hence the restaurateur has the option of paying output tax @ 5% without availing input tax credit or paying output tax @ 18% by availing input tax credit. It was also argued that section 16(1) of the Act confers a right to every registered person paying regular rate of tax to take input tax credit. Under the Notification, availment of concessional rate of tax @5% is subject to the condition that the input tax credit is not availed. If the condition is not fulfilled, then the concessional rate will not apply. The phrase “provided that” signifies that a particular thing must happen before another thing can happen. In this context the applicant relied upon on the judgment of the Hon’ble Supreme Court in the case of State of Kerala Vs Builders Association of India [(1997)104 STC 134 (SC)]
The Authority found that the supply of food and beverage services is covered under Heading 9963 and Group 99633 as per Notification No. 11/2017- Central Tax (Rate) dated 28.06.2017 read with the Annexure to the said Notification. The classification of the services rendered by the applicant is clearly defined under Service Code (Tariff) 996331. The entries at serial number 7 of the aforesaid Notification were amended through Notification No 46/2017 –Central Tax (Rate) dated 14th November, 2017 levying a central tax of 2.5% on restaurant services as provided by the applicant under the condition that credit of input tax charged on goods and services used in supplying the service have not been taken.
As the services provided by the applicant are covered under a specific heading and the Notification carves out a specific rate of tax for that heading, the same shall be applicable to the applicant. Serial number 35 would qualify for invocation only in respect of services that do not find classification elsewhere. Therefore the applicant is covered by serial number 7 and not 35.
3. Whether GST is chargeable on freight amount excluding diesel cost or on total amount which is inclusive of diesel cost where the recipient of service is providing diesel to the service provider?
Held: Yes including Diesel Cost
In the case of M/s Shri Navodit Agarwal-AAR Chhattisgarh the applicant transporter engaged in carrying goods of one Cement Company namely M/s Shree Raipur Cement. Pursuant to the oral agreement between the aforesaid parties, Shree Raipur Cement proposed that while transporting their cement/ clinkers, diesel required would be provided by Shree Raipur Cement. Further they will also raise separate invoice for diesel on the applicant. Now, the key point on which the applicant sought advance ruling is that whether the cost of such diesel supplied by the recipient is to be added to the freight amount charged by the applicant or not?
The Authority made a reference to the legal provisions of section 7(1) related to Supply section 15(2) (b) related to Valuation and section 2(31) related to Consideration and held that the diesel provided by the cement company to the applicant is an important and integral component of the applicant’s business, without which the process of supply of cement can never get materialized. The applicant was liable to pay the cost of diesel but it has been paid by the cement company.
Hence, the Authority ruled that the applicant is liable to charge GST on the cement company on total amount including cost of diesel so provided by the cement company.
Note: The author is of the view that there could also have been another argument that ‘Diesel’ is presently a Non-GST item as specified u/s 9(2) so will this be subject to GST at all?
4. Whether “Business Transfer Agreement” as a going concern on slump sale basis is exempted from the levy of GST in terms of serial no.2 of the Notification no.12/2017 C.T (Rate) dated 28.06.2017?
Held: Yes
In the case of M/s. Innovative Textile Limited-AAR Uttarakhand, the applicant is a seller and is carrying on the business of manufacturing of textile yarns, fabrics and garments. The applicant intends to sell their ongoing business of manufacturing of textile yarns and fabrics (namely, ‘Sitarganj Business’) to M/s SD Polytech (P) ltd. (herein referred to as ‘purchaser’) in the form of business transfer as a going concern on slump sale basis as a whole with all assets and liabilities. The purchaser agreed to purchase ‘Sitarganj Business’ as a going concern with all assets and liabilities as set out in the Business Transfer Agreement. Now the issue which is raised before the Authority is whether the sale of Sitarganj Business as a going concern on slump sale basis is exempt under GST in terms of Notification No.12/2017 dated 28.06.2017?
The Authority made an analysis of the Notification No.12/2017 dated 28.06.2017. At serial no.2 of the notification, the authority found that the services by way of transfer of a going concern, as a whole or an independent part thereof is to be treated as supply of service and is exempted under GST. Further, the Authority also made a reference to clause (d) of section-2(17) relating to definition of ‘Business’. The Authority thus observed that the acquisition of goods/services for commencement of business is covered under the said definition.
In view of the above provisions, the Authority held that the applicant has supplied services by way of transfer of Sitarganj Business as a going concern and as per serial no.2 of the Notification No.12/2017 dated 28.06.2017, the same is exempted from levy of GST.
5. Whether the inputs sent to the job-worker and consumed in the process of galvanization should be treated as supply in terms of section 143(3)?
Held: No
In case of Ratan Projects & Engineering Co Private Limited-AAR West Bengal, the applicant is a manufacturer of cable tray, angel ladder tray etc, which are mainly used for electrical works. The Applicant sends steel structures for galvanizing to a job worker along with furnace oil, zinc, nickel that are to be consumed in the galvanizing process. He seeks a ruling whether dispatch of those consumable materials is to be treated as supply from the principal to the job worker if they are not returned within the time allowed under section 143(1) (a) of the GST Act.
The Authority observed that Job work is defined under section 2(68) of the GST Act as any treatment or process undertaken by a person on goods belonging to another registered person, and a job-worker shall be construed accordingly. The Applicant sends steel structures of different names and shapes to a job-worker for the process of galvanizing, which effectively means the application of a protective zinc coating to prevent rusting. It is, therefore, an intermediate stage in the Applicant’s manufacturing activity, and the ‘inputs’ mentioned in section 143(1) (a) include the intermediate goods arising from the process of galvanizing (refer to Explanation to section 143). Therefore, the return of the galvanized goods to the Applicant satisfies the condition of receiving back the ‘inputs’ in accordance with section 143(1)(a) of the GST Act. The ‘inputs’ returned, however, do not include in their original physical forms the goods like furnace oil, zinc etc that have been sent to the job-worker. The Applicant submits that these goods have been consumed in the galvanizing process. Reference was also made to the case of Rahee Infratech Ltd [2016 (339) ELT 293 Tri – Kolkata)] CESTAT, Kolkata Bench decided a similar question in the context of Cenvat credit.
The goods that are used up in the galvanizing process cannot be separated from the galvanized goods. So, the zinc, furnace oil or nickel exhausted in the process of galvanizing need not be physically returned. If the galvanized structures are returned that will be sufficient compliance of section 143(1) (a) of the GST Act.
Thus the inputs sent to the job-worker and consumed in the process of galvanization should not be treated as supply in terms of section 143(3).
6. Whether preparation and serving food to children of Government Schools under Mid-Day Meal Programme of Government and serving of food under Government sponsored Anganwadi meals program is covered under the scope of supply as per section 7 of CGST/RGST Act, 2017?
Held: Yes
In case of M/s The Akshay Patra Foundation-AAR Rajasthan, the applicant is a Not for Profit organization. It is also a charitable trust registered under sec-12AA of the Income Tax Act, 1961.It is implementing Mid-Day Meal Scheme in the government and government aided schools. The Ministry of Human Resource Development, Government of India has prescribed a Model MOU for partnering with NGOs for implementation of Mid-Day Meal program to all the state governments.
Accordingly, the applicant raises funds by way of donation from Corporate, Trusts, Foundations and general public for meeting the expenditure incurred on the program apart from free grains and food conversion cost received from Government. The applicant contends that serving free food under Mid-day Meal program to government school children is not covered under the scope of “supply” under GST.
The Authority made a reference of section-7 of the GST Act. Further, a reference of section-2(17) of the CGST Act was also given. The word ‘commerce’ used in section-2(17) has several definitions, like as per business dictionary, it means exchange of goods or services for money or in kind, usually on large scale enough to require transportation from place to place, or across city. As per the documents submitted by the applicant, the Authority observed that the applicant is reimbursed as per the rate fixed by the Government of India for transportation charges. Further the applicant is reimbursed for the cooking cost also. The applicant is receiving conversion charges for cooking of the meal.
In view of the above, it is clear that the activity of preparing and serving of food under Mid-Day Meal and Anganwadi Meal program is covered under the definition of business.
Also, there is no exemption granted to charitable trusts in case of supply of goods which are taxable and not specifically exempt or Nil rated.
Also the applicant is receiving consideration (in the form of reimbursement from Government) against the said activity.
Hence the Authority ruled that preparation and serving of food to children of government schools under Mid-Day Meal program and Anganwadi Meal program is covered under the scope of ‘supply’ under GST.
7. What is the tax liability under GST for the tour packages, which are provided to guests by way of separate services like accommodation, serving food and beverages, service of authorized guides, trekking accessories etc. against separate invoices?
Held: As per goods and services supplied
In case of Kerala Forest Development Corporation-AAR Kerala the applicant is conducting Eco-tourism activities in the reserve forest at Munnar, Gavi, Nelliyampathy and Arippa. The applicant wants to issue separate invoices to customers for the services availed by them, instead of giving as packages. The services offered under different categories are like -Providing accommodation, Preparing and serving food and beverages, Providing service of authorized guides, Providing trekking accessories.
The above mentioned services are individually available to the customers. Now the applicant needs a ruling on the taxability of GST on the services offered by him against separate invoices. The applicant also stated that charges for accommodation per guest are below threshold minimum to levy tax.
However, the Authority analyzed that the criteria for arriving threshold limit in the case of service of accommodation is not based on the charges realized from guests per head. As per SAC 9963, exemption is eligible only if services by a hotel, inn, guest house, club or campsite, by whatever name called, for residential or lodging purpose, having declared tariff of a unit of accommodation below one thousand rupees per day or equivalent.
It is stated that food and beverages are prepared in each of the destinations, and are served to the guests as per their choice and separate invoices are issued. Therefore as per Notification No.13/2018 C.T (Rate) dated 26.07.2018 the same is taxable @5% GST without ITC.
The service of authorized guide provided by the applicant is taxable @18% GST. As per Circular No.47/21/2018-GST dated 08.06.2018, it has been clarified that the taxability of supply would have to be determined on case to case basis looking at the facts and circumstances of each case. Where a supply involves supply of both goods and services and the value of such goods and services are shown separately, the goods and services would be liable to tax at the rates as applicable to such goods and services separately.
Hence, the Authority ruled the tax liability of the services provided by the applicant as under-
a) For accommodation- tax liability depends upon the tariff charges per unit of the accommodation.
b) For food and beverages- taxable@5%
c) For authorized guide- taxable@18%
Hence the Authority ruled that the applicant is not entitled to pay the GST @ 18% with input tax credit as the services being offered by the Applicant are classified under a heading attracting GST @ 5%, without input tax credit.
8. Whether the services provided by the applicant in affiliation to specified universities and providing degree courses to students under related curriculums are exempt from Goods and Services Tax vide entry no. 66 of the Notification No. 12/ 2017 – Central Tax dated 28.06.2017?
Held: Yes
In the case of M/s Emerge Vocational Skills Private Ltd.–AAR Karnataka, the applicant is a private limited company engaged in providing specified educational services in the field of Hotel Management.
Entry No. 66 of the Notification No. 12/ 2017 –Central Tax (Rate) dated 28th June 2017 exempts services provided by education institutions to its students, faculty and staff.
The applicant proposes to obtain an affiliation with a university in the State of Karnataka and shall thereafter be engaged in provision of education in affiliation with the said university in the State of Karnataka.
The University would hold the examination and grant the qualification or degree for the course. The applicant states that, he offers a curriculum to a student which enrolls him / her with a university recognized by an Indian Law. The curriculum also involves examination being conducted by the University and all successful candidates are granted University degrees. The applicant is of the view of that university curriculum offered by the applicant may qualify as services provided by educational institution to its students and accordingly exempt from goods and services tax.
The Authority examined the said notification. As per the contention of the applicant, he is getting the institution affiliated to a University in the State of Karnataka and is also proposing to impart education as a part of a curriculum provided by the University and the examination would be conducted by the University and qualifications which are recognized by law would be issued to the successful candidates. Hence the institution would qualify as an “educational institution” for the purposes of such courses only which lead to a qualification recognized by any law for the time being in force. The “Services provided by an educational institution to its students, faculty and staff” is exempt from tax under the Central Goods and Services Tax Act and the applicant qualifies as an educational institution in so far as those courses for which affiliation has been obtained from the University in the State of Karnataka and for which University Curriculum is prescribed and the qualifications recognized by the law for the time being in force is given after the conduct of examinations by such University, the applicant is exempted from Goods and Services Tax.
Hence the services provided by the applicant in affiliation to specified universities and providing degree courses to students under related curriculums are exempt from Goods and Services Tax, subject to the condition that such education services provided must be as a part of a curriculum for obtaining a qualification recognized by any law for the time being in force.
9. Whether the following services are treated as exempted supply of service?
(i) Printing of Pre-examination items like question papers, OMR sheets (Optical Mark Reading), answer booklets etc,
(ii) Printing of Post-examination items like marks card, grade card, certificates to the educational boards upto higher secondary; and
(iii) Scanning and processing of results of examinations.
Held: Yes
In the case of M/s. K L Hi-tech Secure Print Ltd-AAR Telangana, the applicant is engaged in the business of providing the services of printing of security documents to its clients, who vary from Government Authorities and agencies, Banks, Educational Boards / Institutions and Private Companies.
Exemption from payment of GST in respect of certain supplies of Services namely services relating to admission to, or conduct of examination by institution has been provided under Notification No.12/2017-Central Tax (Rate) dated 28.06.2017 as amended by Notification No.02/2018-Central Tax (Rate) dated 25.01.2018 at serial number (iv).
The Applicant submits that the service provided to an educational institution, by the applicant in relation to conduct of examination by an institution is exempt by virtue of the notifications cited supra. The said service provided by the applicant to the educational institution is towards conduct of examination. Since, the service provided by the applicant towards pre-examination items will be used by the educational institution for conduct of examination; it shall be exempt from GST.
In response to the second question, the applicant added that the services provided by the him to the educational boards by way of printing of marks card, grade card, certificates etc. acts as a medium for communication of examination results to students. The said activity acts as a last leg towards completion of the activity of conducting the examination process by the educational institution.
Against the third question, he contended that the services provided by the applicant to the educational boards by way of scanning and processing of results is more an outsourced activity which otherwise would have been done and undertaken by the educational institution itself. This is an integral part of the conduct of examination and publishing of results of the students who participated in the said examinations.
The Authority ruled that the services provided by the applicant to an educational institution relating to conduct of examination are exempt.
10. What would be the classification and the applicable GST rate, for the supply of Printing of cheque book?
Held: 5% rate (where paper is supplied by customer) & NIL (where paper is not supplied by customer).
In the case of M/s. K L Hi-tech Secure Print Ltd-AAR Telangana the applicant is a company engaged in providing the services of printing of cheques to various customer banks and there exists the following two scenarios, where the:-
a) Physical inputs i.e., paper alone supplied by the customer banks, however inks which are used for printing belong to the Company itself;
b) Physical inputs including paper and inks which are used for printing belong to the company itself;
In both the above scenarios, the company prints the cheque and then supplies the cheque book to the bank once the final output is ready.
The Authority found that assessee is undertaking two types of supplies-
(i) In respect of paper supplied by the banks, they print the cheque format of respective banks and (ii) physical inputs including paper and ink would be borne by the company and the cheques after printing as per the bank’s specifications would be supplied to them. In both the cases, the unit prints the cheque and then supplies the cheque book to the bank after completion of the printing work. It is the printing on the cheque paper, which communicates the message to the buyer that the product supplied to him is “Cheque” and not “Cheque paper”.
In respect of the situation, where the paper is being supplied by the banks and the applicants are undertaking job work of printing the cheque and converting them as cheque books, the predominant supply in the instant case is supply of service covered under sub-item (c) of item (ii) at Serial No.26 of the Notification No.11/2017-Central Tax (Rate) dated 28.06.2017 as amended i.e “services by way of any treatment or process on goods belonging to another person, in relation to- printing of all goods falling under chapter 48 or 49, which attract CGST @ 2.5% or Nil”. The “cheques, loose or in book form” being an exempted supply in terms of S.No. 118 to the Notification No. 02/2017- Central Tax (Rate) dated 28.06.2017; the supply of service by the applicant attracts GST @ 5% (2.5% CGST + 2.5% SGST).
In respect of supply of cheque books where the printing paper and inks are being borne by the applicants, the same falls under Tariff heading 4907 as goods and they are an exempted supply in terms of Serial No 118 to the Notification No.02/2017-Central Tax (Rate) dated 28.06.2017. Hence, cheques or cheque books would not attract any GST and are an exempted supply in terms of the Notification.
11. What would be the classification and the applicable GST rate, for the printing and supply of Aadhaar Cards on paper?
Held: Composite supply and rate of tax will be 12%.
In the case of M/s. K L Hi-tech Secure Print Ltd-AAR Telangana, the applicant has entered into contract with Unique Identification Authority of India (UIDAI) for provision of services of printing and dispatching of Aadhaar Cards.
The applicant contends that the activity of printing and dispatch of Aadhaar cards provided to Unique Identification Authority of India (UIDAI), by the applicant is a supply of service. The applicant carries out the activity of printing of contents of Aadhaar on paper. The product which is generated from the activity will be treated by trade as well as in common parlance as paper, hence the classification that should be under Heading 4901 as per the Notification No. 1/2017-Central Tax (Rate) dated 28th June, 2017. Accordingly, the rate of tax applicable to the product is 5% (i.e., 2.5% – Central Tax and 2.5% – State Tax or 5% – Integrated Tax). The Applicant submits that supply of printing, laminating and enveloping, sorting, franking and dispatching is a composite supply of printing of Aadhaar card whereby, printing of Aadhaar card shall constitute to be the principal Supply and the other services are ancillary to the principal supply and such ancillary service is naturally bundled.
It is important to note that this will always be transaction and business specific; it cannot be specified on an all-pervasive basis. Hence, the applicant provides that the activity provided by the applicant is purely a “service” in relation to printing where the content to be printed along with design and logo is provided by UIDAI and the applicant only prints such content on the paper. Accordingly the activity of printing on the paper will fall within the ambit of Entry No. 27 with heading 9989 (i) of Notification No. 11/2017-Central Tax (Rate) dated 28th June, 2017 as amended from time to time. Accordingly, the applicant believes that the rate of tax for the activity of supply of printed Aadhaar cards on paper to UIDAI will be 12% i.e. (6% – Central Tax and 6% – State Tax or 12%- Integrated Tax).
The Authority observed that the applicant is rendering various supplies like conversion of data to the required file format, printing of aadhaar cards, lamination, franking and dispatching etc. In the entire gamut of things being undertaken by the applicant, all the supplies made by them, are naturally bundled and supplied in conjunction with each other. Each of these supplies is not supplied separately and is dependent on other supplies provided by them. Hence, the services can be considered as composite service in terms of section 2(30) of CGST/TGST Act, 2017. These services cannot be considered as mixed supply as each service is dependent on one another and all the supplies are provided in conjunction. All the services are interdependent on one another. Hence it cannot be considered as mixed supply in terms of section 2(74) of CGST/TGST Act, 2017. In the entire gamut of things being undertaken by the applicant, it appears that, it is an activity of predominant nature of supply of service rather than supply of goods. Accordingly, it appears that, the services rendered by the applicant merits as supply of service and accordingly falls under serial no.27 of Notification No.11/2017-Central Tax ( Rate) dated 28.06.2017 as amended and the rate of tax applicable is 12% ( 6% CGST + 6% SGST).
Hence the Authority ruled that the supply of Aadhaar Cards are classifiable under heading 9989 of GST Tariff and attracts GST @ 12% ( 6% CGST + 6% SGST) in terms of S.No.27 of Notification No.11/2017-Central Tax (Rate) dated 28.06.2017 as amended.
12. What would be the classification and the applicable GST rate, for the printing and supply of Polyvinyl chloride (PVC) Cards?
Held: Supply of Goods and rate of tax will be 18%
In the case of M/s. K L Hi-tech Secure Print Ltd-AAR Telangana the Applicant carries out the activity of printing on Polyvinyl chloride (PVC) Cards belonging to the applicant itself for various customers. The printed cards are in the nature of loyalty cards, identity cards and other cards of similar nature without any magnetic stripe. Thus, the applicant based on the above would refer to the classification of the product which is printed by the applicant under the following Chapter heading 3920 as provided in Notification No. 01/2017-Central Tax (Rate) dated 28th June.
The applicant submits that printing activity specified above shall be taxable at the rate specified in Entry No. 27 with heading 9989 (ii) of Notification No. 11/2017- Central Tax (Rate) dated 28th June, 2017 as amended from time to time since the goods on which the activity of printing does not fall under Chapter 48 or 49:-
Thus, the applicant based on the above facts submits that the activity of printing on Polyvinyl chloride (PVC) Cards, the goods being the plastic cards in the given case would fall under within the ambit of Chapter 3920. Hence, the activity of printing on PVC Cards will be liable to tax under GST at the rate of 18% (9% – Central Tax and 9% – State Tax or 18% – Integrated Tax).
The Authority stated that the PVC cards are belonging to the applicant. The predominant supply is that of goods and the supply of printing of the content supplied by the recipient of supply is ancillary to the principal supply of goods and therefore such supply would be classified as supply of goods falling under chapter 3920 of the Customs Tariff as made applicable to GST Tariff, hence it attracts 18% GST (9%CGST+9%SGST) as per Sl.No.106 of Schedule III of Notification No.1/2017-Central Tax (Rate) dated 28th June, 2017.
Hence the Authority ruled that the printing and supply of Polyvinyl chloride cards (PVC) are classifiable under heading 3920 of GST Tariff and attracts 18% GST (9%CGST + 9%SGST) in terms of S.No.106 of Schedule III of Notification No.1/2017- Central Tax (Rate) dated 28th June, 2017.
13. Whether the Event Management support services provided in one state to a registered person of another state is governed u/s 12(7) (i) of the IGST Act, 2017?
Held: Yes
In the case of Grasshopper Production-AAR Goa, the applicant is a service provider of event management to the clients in film shooting industry and providing location for shootings as per the requirements of the clients. All the services are procured from suppliers within the state of Goa in the name of the applicant on payment of CGST and SGST wherever applicable from the company accounts and charged their clients for cost of supply of such event management. The applicant has been providing services to Gallani Entertainment, Mumbai who is a registered recipient of service. The question of applicant is regarding the place of supply of service provided to Gallani Entertainment.
The Authority gave a reference of section-12 of the IGST Act and held that the applicant is providing services of Event Management to a registered person of Mumbai. As per the provision of section 12(7)(i) of the IGST Act, the place of supply of services, in case of registered person shall be the location of the recipient of such service. Hence, the Event Management support services provided in Goa to a registered person in Maharashtra is governed u/s 12(7) (i) of the IGST Act. The same should be treated as interstate supply and the place of supply shall be Mumbai and the applicable rate of tax is 18%.
14. Whether the service provided for issuing ‘Pollution under Control Certificate’ for vehicles on behalf of State Government is exempted from GST?
Held: No
In the case of M/s Venkatesh Automobiles-AAR Goa the applicant is an Authorized Service Centre appointed by the Government of Goa, Directorate of Transport to carry out the services of pollution testing of commercial and non-commercial vehicles. The applicant carries out the abovementioned testing and issue ‘Pollution under Control Certificate’ on payment of prescribed fees fixed by the Government. For the purpose of issuing the said certificate, the applicant purchases blank leaflets books from Directorate of Transport on payment of prescribed rate per leaf and issues same leaflets to the customers after testing Pollution Control Test at higher rate which is also prescribed by Directorate of Transport. The difference between the cost of procurement of the leaflets and the issue price to customers is the consideration charged for services rendered by him. The applicant is of the view that the services provided by him are covered under SAC 9991 and accordingly exempt from GST.
The Authority considered the facts submitted by him. The Authority stated that the service rendered by the applicant is not covered under Schedule-III appended to the CGST as well as GGST Act. Moreover the services provided by the applicant are not fully covered under SAC 9991. The Government has authorized the applicant to issue Pollution Control Certificate on payments. It is the service provided by the applicant to the customers on payment of service charges. Since the services of testing of Pollution are provided on payment of service charge, the service provided by the applicant is liable to GST.
Hence the Authority of issuance of Pollution Under Control Certificate for vehicles issued by the applicant is not covered under SAC 9991 and is covered under Residuary Entry and hence, should be taxed @ 18%.
