{"id":15275,"date":"2020-08-24T14:38:25","date_gmt":"2020-08-24T09:08:25","guid":{"rendered":"https:\/\/corpbiz.io\/learning\/?p=15275"},"modified":"2021-01-15T12:19:38","modified_gmt":"2021-01-15T06:49:38","slug":"selective-applicability-of-gst-regulation-by-aar","status":"publish","type":"post","link":"https:\/\/corpbiz.io\/learning\/selective-applicability-of-gst-regulation-by-aar\/","title":{"rendered":"Latest: Selective Applicability of GST Regulation by AAR"},"content":{"rendered":"\n<p class=\"has-drop-cap\">12% of GST applicable on manufacturing and supplying of different parts of Railway that includes knuckle, toggle, lock etc. as per the rulings stated by the Karnataka Authority of Advance Ruling. Applicability of GST on EPC Contract is 18% concerning the power distribution to the government entity as ruled by the Telangana Authority of Advance Ruling. 5% of <a href=\"https:\/\/corpbiz.io\/gst-registration\"><strong>Good and services tax<\/strong><\/a> is applicable on food that is supplied to the Government Hospitals, Private Hospitals as well as Autonomous Bodies on outsourcing basis as held by the Telangana Authority of Advance Ruling.<\/p>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter\"><img decoding=\"async\" width=\"580\" height=\"443\" src=\"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/08\/image-100.png\" alt=\"Applicability of GST Regulation by AAR\" class=\"wp-image-15277\" srcset=\"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/08\/image-100.png 580w, https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/08\/image-100-300x229.png 300w\" sizes=\"(max-width: 580px) 100vw, 580px\" \/><\/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\/selective-applicability-of-gst-regulation-by-aar\/#Applicability_Of_GST_on_Manufacture_And_Supply_Of_Railway_Parts\" >Applicability Of GST on Manufacture And Supply Of Railway\nParts<\/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\/selective-applicability-of-gst-regulation-by-aar\/#Whether_Railway_parts_like_Couplers_knuckle_locks_etc_be_classified_under_HSN_8607_or_under_HSN_7325\" >Whether Railway parts like Couplers, knuckle, locks etc.\nbe classified under HSN 8607 or under HSN 7325?<\/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\/selective-applicability-of-gst-regulation-by-aar\/#Applicability_of_GST_on_EPC_Contract_with_Respect_to_Power_Distribution_and_Transmission_to_Government\" >Applicability of GST on EPC Contract with Respect to Power Distribution and Transmission to Government<\/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\/selective-applicability-of-gst-regulation-by-aar\/#Whether_EPC_contract_with_respect_to_power_distribution_falls_under_the_category_of_%E2%80%9CGovernment_Entity%E2%80%9D\" >Whether EPC contract with respect to power distribution\nfalls under the category of \u201cGovernment Entity\u201d?<\/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\/selective-applicability-of-gst-regulation-by-aar\/#Applicability_of_GST_on_Food_Supplied_to_Hospitals\" >Applicability of GST on Food Supplied to Hospitals<\/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\/selective-applicability-of-gst-regulation-by-aar\/#Whether_food_supplied_to_certain_hospitals_is_chargeable_for_GST\" >Whether food supplied to certain hospitals is chargeable\nfor GST?<\/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\/selective-applicability-of-gst-regulation-by-aar\/#Conclusion\" >Conclusion<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Applicability_Of_GST_on_Manufacture_And_Supply_Of_Railway_Parts\"><\/span>Applicability Of GST on Manufacture And Supply Of Railway\nParts<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>M\/s\nPragati Steel Casting Pvt. Ltd. , manufacturers of various steel castings,\nautomobile parts, valves etc. supply the parts to M\/s Sanrok Enterprises,\nFaridabad, who supply the same to the Indian Railways on the classification of\nsaid goods under HSN 8607 and on discharging the GST on 5%. The specifications\nand drawings are as per the ruling stated by the Authority of Advance\nRuling(AAR), Karnataka that 12% GST would be applicable in order to manufacture\nand supply Railway parts that include knuckle, toggle, lock, yoke, etc.&nbsp; <\/p>\n\n\n\n<p>Hence\nthe applicant i.e. M\/s Pragati Steel Casting Pvt. Ltd. filed an application\nseeking the classification of the aforementioned parts and the rate of GST\napplicable thereon as the impugned goods are liable to be classified under HSN\n7325 and the GST rate that is applicable here is 18%. <\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Whether_Railway_parts_like_Couplers_knuckle_locks_etc_be_classified_under_HSN_8607_or_under_HSN_7325\"><\/span>Whether Railway parts like Couplers, knuckle, locks etc.\nbe classified under HSN 8607 or under HSN 7325?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The application seeking advance ruling regarding the classification of certain Railway parts under HSN 8607 or HSN 7325 as other cast articles of Iron or Steel was considered by the Authority consisting of members Dr. Ravi Prasad M.P. and Mashoodur Rehman Farooqui. It was held that the applicable rates of GST on the impugned goods is 5% in accordance to the entry number 241 of the Schedule I to the notification No. 1\/2017, till October 29, 2019, which has now been replaced by the entry number 205 G of Schedule II. Hence the rate of GST has now been increased to 12% with no refund of the unutilized input tax credit. <\/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\/government-unable-to-pay-states-gst-compensation-share\/\">Latest: Government unable to pay state\u2019s GST compensation share<\/a><\/mark><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Applicability_of_GST_on_EPC_Contract_with_Respect_to_Power_Distribution_and_Transmission_to_Government\"><\/span>Applicability of GST on EPC Contract with Respect to Power Distribution and Transmission to Government<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>M\/s.\nVishwanath Projects Ltd. is providing services of supply, erection. Testing and\nCommissioning of 51 Nos 33\/11kV Substations with Associated Lines to M\/s.\nOdisha Power Transmission Corporation Limited, Janpath, Bhubaneshwar (OPTCAL).<\/p>\n\n\n\n<p>The\nAAR earlier ruled that 18% of GST is applicable on EPC contracts with respect\nto power distribution to the government entity. According to the applicant, the\npower distribution companies are treated as government entities and the GST\nrate is 12%. <\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Whether_EPC_contract_with_respect_to_power_distribution_falls_under_the_category_of_%E2%80%9CGovernment_Entity%E2%80%9D\"><\/span>Whether EPC contract with respect to power distribution\nfalls under the category of \u201cGovernment Entity\u201d?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The\napplication seeking advanced ruling as to whether EPC contract with respect to\npower distribution falls under the category of government entity. As per GST\nnotification number 1\/2018 Central Tax on which the rate of GST is applicable.\nIt was considered by the authority consisting of Additional Commissioner Of\nState Tax Officer J. Laxminarayana and the Joint Commissioner of Central Tax\nOfficer, B. Raghukiran.<\/p>\n\n\n\n<p>It was held that the services rendered to M\/s OPTCL falls under-serviced providers to a government entity and hence the rate of Tax is 18% for the services referred by the applicant. It was also found by the authority that the contractee is not rendering any non-commercial services for the purpose of commerce and they get reimbursed for their activity on behalf of the customers from the <strong><em>State Government<\/em><\/strong><sup><a href=\"https:\/\/en.wikipedia.org\/wiki\/State_government\"><strong><em>[1]<\/em><\/strong><\/a><\/sup> which cannot be called as non-commercial. Since their work is used for commercial purposes the benefit of 12% tax rate is not available to the applicant. <\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Applicability_of_GST_on_Food_Supplied_to_Hospitals\"><\/span>Applicability of GST on Food Supplied to Hospitals <span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>M\/s Navneet Kumar Talla is involved with supplying food to M&amp;G Cancer Hospital, Hyderabad on an outsourcing basis to the patients of the hospital. The AAR, Telangana has ruled that 5% GST would be applicable to food that is supplied to hospitals inclusive of Government hospitals. Private hospitals and autonomous bodies on outsourcing basis with a condition of non-availability of an input tax credit. <\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Whether_food_supplied_to_certain_hospitals_is_chargeable_for_GST\"><\/span>Whether food supplied to certain hospitals is chargeable\nfor GST?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The application seeking advanced ruling that whether the food supplied to the hospitals be it governmental, private and autonomous bodies on outsourcing basis are chargeable for GST or not. It was considered by the authority consisting of Additional Commissioner of State Tax, J. Laxminarayana, and the Joint Commissioner of Central Tax, B. Raghukiran. It was ruled that 5% of GST would be held chargeable for food supplied to Government Hospitals, private hospitals and Autonomous bodies on outsourcing basis, the GST is chargeable. The food that is supplied to the hospitals by the applicant depends on the time period and would be a subject to tax as per the provisions of notification numbers 11\/2017. It was further held that the GST must be paid 5% from July 27, 2018 onwards.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Conclusion\"><\/span>Conclusion<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The AAR held that applicability of GST in different situation will be conditional by nature. The food that is supplied to the hospitals by the applicant depends on the time period and would be a subject to tax as per the provisions of notification numbers 11\/2017. It was further held that the GST must be paid 5% from July 27, 2018 onwards. It was held that the applicable rates of GST on the impugned goods is 5% in accordance to the entry number 241 of the Schedule I to the notification No. 1\/2017, till October 29. &#8220;The AAR earlier ruled that 18% of GST is applicable on EPC contracts with respect to power distribution to the government entity.&#8221;<\/p>\n\n\n\n<p>Our <a href=\"https:\/\/corpbiz.io\/\"><strong>CorpBiz<\/strong><\/a> group will be at your disposal if you seek skilled advice on any aspect GST registration along with it\u2019s complete compliance. We will help you ensure full compliance concerning all the requirements based on your anticipated activities of your company, ensuring the productive and well-timed completion of your expectation.<\/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\/guide-on-gst-online-registration-process\/\">GST online Registration Process: A Complete Guide<\/a><\/mark><\/p>\n","protected":false},"excerpt":{"rendered":"<p>12% of GST applicable on manufacturing and supplying of different parts of Railway that includes knuckle, toggle, lock etc. as per the rulings stated by the Karnataka Authority of Advance Ruling. Applicability of GST on EPC Contract is 18% concerning the power distribution to the government entity as ruled by the Telangana Authority of Advance [&hellip;]<\/p>\n","protected":false},"author":18,"featured_media":15278,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[16,153],"tags":[914],"acf":{"service_id":"334"},"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":4391,"readingTime":4,"_links":{"self":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/15275"}],"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=15275"}],"version-history":[{"count":11,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/15275\/revisions"}],"predecessor-version":[{"id":24214,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/15275\/revisions\/24214"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media\/15278"}],"wp:attachment":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media?parent=15275"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/categories?post=15275"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/tags?post=15275"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}