{"id":13947,"date":"2020-07-29T18:00:45","date_gmt":"2020-07-29T12:30:45","guid":{"rendered":"https:\/\/corpbiz.io\/learning\/?p=13947"},"modified":"2023-04-11T11:28:44","modified_gmt":"2023-04-11T05:58:44","slug":"latest-orders-by-aar-on-different-segments-related-to-gst","status":"publish","type":"post","link":"https:\/\/corpbiz.io\/learning\/latest-orders-by-aar-on-different-segments-related-to-gst\/","title":{"rendered":"Latest Orders by AAR on Different Segments Related to GST"},"content":{"rendered":"\n<p class=\"has-drop-cap\">An Advance Ruling Authority helps the candidate in planning the activities which are accountable for payment of GST. Orders by AAR brings inevitability in determining the tax obligation, as the ruling given by the Authority for Advance Ruling is compulsory on the candidate as well as Government authority. Additionally, it helps in evading long-drawn and exclusive litigation later. Looking for an advance ruling is reasonable, and the process is simple and prompt. It thus delivers inevitability and transparency to a taxpayer with reference to any issue which may possibly cause a dispute with the tax management. A lawfully constituted form known as Authority for Advance Ruling (AAR) can give a compulsory ruling to a candidate who is a registered taxable person or is responsible for being registered under <a href=\"https:\/\/corpbiz.io\/gst-registration\"><strong>Goods and services tax<\/strong><\/a>.<\/p>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter\"><img decoding=\"async\" width=\"1024\" height=\"390\" src=\"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/07\/Picture22-1024x390.png\" alt=\"AAR on Different Segments Related to GST\" class=\"wp-image-13965\" srcset=\"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/07\/Picture22-1024x390.png 1024w, https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/07\/Picture22-300x114.png 300w, https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/07\/Picture22-768x292.png 768w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><\/figure><\/div>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_82_2 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title ez-toc-toggle\" style=\"cursor:pointer\">Page Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 eztoc-toggle-hide-by-default' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/corpbiz.io\/learning\/latest-orders-by-aar-on-different-segments-related-to-gst\/#Orders_by_AAR_on_Coal_handling_and_Distribution_charges\" >Orders by AAR on Coal handling and Distribution charges<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/corpbiz.io\/learning\/latest-orders-by-aar-on-different-segments-related-to-gst\/#Facts_of_the_Case\" >Facts of the Case<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/corpbiz.io\/learning\/latest-orders-by-aar-on-different-segments-related-to-gst\/#Issued_Raised_in_front_of_authorities\" >Issued Raised in front of authorities<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/corpbiz.io\/learning\/latest-orders-by-aar-on-different-segments-related-to-gst\/#Judgment_of_the_Case\" >Judgment of the Case<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/corpbiz.io\/learning\/latest-orders-by-aar-on-different-segments-related-to-gst\/#Orders_by_AAR_on_Fabrication_of_Body_on_Chassis\" >Orders by AAR on Fabrication of Body on Chassis<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/corpbiz.io\/learning\/latest-orders-by-aar-on-different-segments-related-to-gst\/#Facts_of_the_Case-2\" >Facts of the Case<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/corpbiz.io\/learning\/latest-orders-by-aar-on-different-segments-related-to-gst\/#Judgment_of_the_case\" >Judgment of the case<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/corpbiz.io\/learning\/latest-orders-by-aar-on-different-segments-related-to-gst\/#Orders_by_AAR_on_Renting_Non-Ac_Buses_in_the_name_of_APSRTC\" >Orders by AAR on Renting Non-A\/c Buses in the name of APSRTC<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/corpbiz.io\/learning\/latest-orders-by-aar-on-different-segments-related-to-gst\/#Facts_of_the_Case-3\" >Facts\nof the Case<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/corpbiz.io\/learning\/latest-orders-by-aar-on-different-segments-related-to-gst\/#Judgment_of_the_Case-2\" >Judgment\nof the Case<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/corpbiz.io\/learning\/latest-orders-by-aar-on-different-segments-related-to-gst\/#Conclusion\" >Conclusion<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Orders_by_AAR_on_Coal_handling_and_Distribution_charges\"><\/span>Orders by AAR on Coal handling and Distribution charges<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The Authority of Advance Ruling (AAR) Madhya Pradesh ruled that 18% of GST on coal handling and distributor charges whenever the supply of such service is intended to be made expressly to the consumers. <\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Facts_of_the_Case\"><\/span>Facts of the Case<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The\napplicant, M\/s Agarwal Coal Corporation Private Limited, is engaged in the\nbusiness of trading of coal in India and for the same Applicant undertakes\npurchase of coal from domestic markets as well as imports from overseas.<\/p>\n\n\n\n<p>On\npurchase of coal, the Applicant has submitted that 5% of GST is paid in an\nintra-state and inter-state supply as the case may be, and on import of coal\nfrom the overseas market 5% of IGST is paid. After coal is imported, the coal\nis stockpiled at the port itself at the designated place for subsequent sale to\ncustomers. Various services are availed by Applicant at the port during the\nprocess of procurement of coal and for fulfilling obligations towards the\nsupply of coal.<\/p>\n\n\n\n<p>The applicant has sought the advance ruling on the issue whether the Applicant is liable to discharge tax liability at the rate of 18% on coal handling and distribution charges wherever the supply of such services is intended to be made expressly to a customer or will the Applicant be entitled to charge GST at the rate of 5% as applicable on supply of coal and will the applicant be entitled to utilize the input tax credit availed for discharging liability towards the supply of coal and supply of coal handling and distribution charges.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Issued_Raised_in_front_of_authorities\"><\/span>Issued Raised in front of authorities<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<ul><li>Whether the applicant is responsible for paying tax liability at rate of 18% on coal handling as well as distribution charges where the supply of services intended to be made specifically with customers or whether the applicant can charge GST at the rate of 5 % as applicable on supply of coals?<\/li><li>Whether the applicant is entitled to utilize the Input Tax Credit available on discharging the liability towards supply of coal or handling or distribution charges for supply of coal?<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Judgment_of_the_Case\"><\/span>Judgment of the Case<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The\nAuthority consisting of its members Manoj Kumar Choubey and Virendra Kumar Jain\nruled that the coal handling and distribution charges will be taxed at the rate\nof 18% and not 5% wherever the supply of such services only is intended to be\nexpressly made to a customer.<\/p>\n\n\n\n<p>&#8220;In light of the referred provisions, we are of the opinion that input credit availed as per the conditions specified in section 16 shall be allowed for discharging the liability towards the supply of coal and supply of coal handling and distribution charges respectively,&#8221; the Authority said.<\/p>\n\n\n\n<p class=\"text-left\"><b>Read our article<\/b>:<mark style=\"background: #fffd03 !important;\"><a href=\"https:\/\/corpbiz.io\/learning\/financial-and-its-related-services-under-gst\/\">Financial and its related services Under GST<\/a><\/mark><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Orders_by_AAR_on_Fabrication_of_Body_on_Chassis\"><\/span>Orders by AAR on Fabrication of Body on Chassis<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The\nAuthority of Advance Ruling (AAR) Madhya Pradesh ruled that 18% of GST\napplicable to the fabrication of the body on chassis provided by the customer.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Facts_of_the_Case-2\"><\/span>Facts of the Case<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The applicant, M\/s VE Commercial Vehicle Limited is engaged in the various businesses including manufacturing of Chassis, Trucks &amp; Buses, Engines, Bus body, and automotive components. The applicant has different manufacturing units\/manufacturing verticals h the State of Madhya Pradesh registered separately under the GST Act.<\/p>\n\n\n\n<p>The\napplicant has sought the advance ruling on the issue whether the supply towards\nthe provision of services in respect of activity of mounting fabrication of\nbodies on chassis provided by Customer should be treated as supply of bus or\nprovision of services in respect of activity of mounting\/fabrication of bus\nbody on the chassis wherein the said activity of mounting\/fabrication is\noutsourced to the Applicant by owner\/provider of chassis in two scenarios.<\/p>\n\n\n\n<ul><li>Firstly, the chassis is originally manufactured by one of the units of the applicant registered separately as a distinct person under the GST Act and sold to the provider of chassis receiving the chassis for the fabrication of the body.<\/li><li>Secondly, the chassis is originally manufactured by some other OEM and sold to the provider of chassis before receiving the chassis for the fabrication of the body.<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Judgment_of_the_case\"><\/span>Judgment of the case<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The\nAuthority consisting of its members Manoj Kumar Choubey and Virendra Kumar Jain\nruled that the supply towards the provision of services in respect of activity\nof mounting or fabrication of bodies on chassis provided by Customer should be\ntreated as supply of bus or provision of services in respect of activity.\nWherein the said activity of mounting or fabrication is outsourced to the\nApplicant by owner or provider of chassis. The ownership of the chassis belongs\nto the applicant; hence both the scenarios mentioned in the question will be\ntaxable under SAC 998881 Motor vehicle and trailer manufacturing services.\nUnder entry no. 26(iv) as &#8216;Manufacturing services&#8217; on physical inputs (goods)\nowned by others it is taxable at the rate of 18%.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Orders_by_AAR_on_Renting_Non-Ac_Buses_in_the_name_of_APSRTC\"><\/span>Orders by AAR on Renting Non-A\/c Buses in the name of APSRTC<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The\nAuthority for Advance Ruling of Andhra Pradesh stated that 18% Goods and Services\nTax (GST) applicable to renting the Non-Air-conditioned buses under the name\n&amp; style of Andhra Pradesh State Road Transport Corporation (APSRTC). <\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Facts_of_the_Case-3\"><\/span><strong>Facts\nof the Case<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The Andhra Pradesh State Road Transport Corporation (APSRTC) is a public sector undertaking well-known under <strong>the RTC Act, 1950<\/strong><sup><a class=\"text-primary\" href=\"https:\/\/www.indiacode.nic.in\/bitstream\/123456789\/13047\/1\/the_road_transport_act%2C_1950.pdf\"><strong>[1]<\/strong><\/a><\/sup>, under the Act of Parliament. The capital invested in the APSRTC is done completely by Central or State Government. It is involved in the transportation of passengers both as step carriers and bond carriers and also in transportation of belongings. <\/p>\n\n\n\n<p>The\nclaimant had filed an application in form <strong>GST ARA-01<\/strong>, dated 15.11.2019,\npaying the prescribed amount of fee for seeking Advance Ruling.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Judgment_of_the_Case-2\"><\/span><strong>Judgment\nof the Case<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The\norder was marked by D. Ramesh, Additional Commissioner of State Tax and M.\nSreekanth, Joint Commissioner of Central Tax on an application filed by Andhra\nPradesh State Road Transport Corporation (APSRTC). <\/p>\n\n\n\n<p>The\nAAR inspected the data furnished by the claimant and observed that the leasing of\nthe Non-Air conditioned buses under the name M\/s Andhra Pradesh State Road\nTransport Services for the events of weddings or any other functions, etc., for\ncarrying of staffs and students of other organizations or departments for\ntransporting of travelers to Sabarimala, for moving of the public to conferences\ndirected by political gatherings and to places like Polavaram project, etc. under\nrental services. <\/p>\n\n\n\n<p>The\nAAR additionally states that the tax charge under GST law is 18% (9% CGST+9%\nSGST), and the claimant is the earner of rental service has to pay the said tax\nliability.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Conclusion\"><\/span><strong>Conclusion<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>To conclude, it can be specified that the law makes a comprehensive provision for advance rulings to ensure that disputes are negligible. Timelines are also given within which the ruling is to be given by the apprehensive authority. Orders by AAR aim is to provide certainty to the taxpayer with respect to his obligations under the GST Act and an expeditious ruling so that the relationship between the taxpayer and administration is smooth and transparent and helps to avoid unnecessary litigation.<\/p>\n\n\n\n<p class=\"text-left\"><b>Read our article<\/b>:<mark style=\"background: #fffd03 !important;\"><a href=\"https:\/\/corpbiz.io\/learning\/download-gst-registration-certificate\/\">\nHow to Download GST Registration Certificate?<\/a><\/mark><\/p>\n","protected":false},"excerpt":{"rendered":"<p>An Advance Ruling Authority helps the candidate in planning the activities which are accountable for payment of GST. Orders by AAR brings inevitability in determining the tax obligation, as the ruling given by the Authority for Advance Ruling is compulsory on the candidate as well as Government authority. Additionally, it helps in evading long-drawn and [&hellip;]<\/p>\n","protected":false},"author":18,"featured_media":13963,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[16,153],"tags":[820],"acf":{"service_id":"68"},"authorName":"Sakshi Srivastava","authorImageUrl":"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/03\/IMG-20180130-WA0007.jpg","authorDescription":"Sakshi has pursued B.B.A.LL.B.(IPR Hons.). She is an avid reader and is keen to gather and share her knowledge on the subjects relating to IPR, Company Law and GST. Priorly she has worked as a legal researcher and vide her articles she aims at improving the core knowledge of the subjects to the masses.","postViews":4215,"readingTime":5,"_links":{"self":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/13947"}],"collection":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/users\/18"}],"replies":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/comments?post=13947"}],"version-history":[{"count":20,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/13947\/revisions"}],"predecessor-version":[{"id":54857,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/13947\/revisions\/54857"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media\/13963"}],"wp:attachment":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media?parent=13947"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/categories?post=13947"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/tags?post=13947"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}