{"id":18206,"date":"2020-10-20T14:19:41","date_gmt":"2020-10-20T08:49:41","guid":{"rendered":"https:\/\/corpbiz.io\/learning\/?p=18206"},"modified":"2020-10-20T14:19:43","modified_gmt":"2020-10-20T08:49:43","slug":"wb-authority-of-advance-ruling-on-the-applicability-of-gst-rate-in-various-sectors","status":"publish","type":"post","link":"https:\/\/corpbiz.io\/learning\/wb-authority-of-advance-ruling-on-the-applicability-of-gst-rate-in-various-sectors\/","title":{"rendered":"WB Authority of Advance Ruling on the applicability of GST rate in Various Sectors"},"content":{"rendered":"\n<p class=\"has-drop-cap\">The following are the latest notifications of WB Authority of Advance Ruling for the applicability of GST rate in Various Sectors. Those are explained below-<\/p>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter\"><img decoding=\"async\" width=\"581\" height=\"399\" src=\"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/10\/image-75.png\" alt=\"WB Authority of Advance Ruling on the applicability of GST rates\" class=\"wp-image-18207\" srcset=\"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/10\/image-75.png 581w, https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/10\/image-75-300x206.png 300w\" sizes=\"(max-width: 581px) 100vw, 581px\" \/><\/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\/wb-authority-of-advance-ruling-on-the-applicability-of-gst-rate-in-various-sectors\/#Leasehold_Right_on_Land\" >Leasehold Right on Land<\/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\/wb-authority-of-advance-ruling-on-the-applicability-of-gst-rate-in-various-sectors\/#Irrigation_and_Flood_control_Department\" >Irrigation and Flood control\nDepartment<\/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\/wb-authority-of-advance-ruling-on-the-applicability-of-gst-rate-in-various-sectors\/#Wular_Conservation_and_Management_Authority\" >Wular Conservation and Management\nAuthority<\/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\/wb-authority-of-advance-ruling-on-the-applicability-of-gst-rate-in-various-sectors\/#Three-wheeled_electrically_Operated_Motor_Vehicle\" >Three-wheeled electrically\nOperated Motor Vehicle<\/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\/wb-authority-of-advance-ruling-on-the-applicability-of-gst-rate-in-various-sectors\/#Decision_by_the_Karnataka_Appellate_Authority_of_Adavance_Ruling_on_Whole_Wheat_Parota_Malabar_Parota\" >Decision by the Karnataka Appellate Authority of Adavance\nRuling on Whole Wheat Parota &amp; Malabar Parota<\/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\/wb-authority-of-advance-ruling-on-the-applicability-of-gst-rate-in-various-sectors\/#Conclusion\" >Conclusion<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Leasehold_Right_on_Land\"><\/span>Leasehold Right on Land<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The WB Authority of Advance Ruling directed that assignment of leasehold right on land is taxable at the rate of 18% under <a href=\"https:\/\/corpbiz.io\/gst-registration\"><strong>Goods and service tax<\/strong><\/a>. The NCLT passed an order u\/s 33 of the <strong><em>Insolvency &amp; Bankruptcy Code, 2016<\/em><\/strong><sup><a href=\"https:\/\/en.wikipedia.org\/wiki\/Insolvency_and_Bankruptcy_Code,_2016\"><strong><em>[1]<\/em><\/strong><\/a><\/sup> to start liquidating appointed Sri Dutta as the Liquidator and the corporate debtor. One of the assets that follow the liquidation is the leasehold industry unit along with car parking space.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Facts of the case<\/h3>\n\n\n\n<p>The\nWB Industrial Development Corporation Ltd arranged the applicant possession of\nthe Demised Premises for 99 years as per a registered deed of sub-lease on the\npayment of an up-front premium of INR 5.07 crore and monthly lease rental of\nINR 21,000. The Liquidator sought advance ruling on the matter of whether GST\nis payable on the consideration receivable on such assignment. If so, what\nshould be the applicable rate? The other issue raised was whether he could\nclaim the input tax credit for the GST paid on the transfer fee.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Ruling by the AAR<\/h3>\n\n\n\n<p>The\nAAR further ruled that it does not create new benefit from the land. It is like\nreparation for agreeing to transfer the rights of applicant to the assignee. It\nis a service classified under &#8216;Other miscellaneous service&#8217; and taxable at the\nrate of 18% under Sl number 35 of the Notification number 11\/2017 \u2013 CT (Rate).<\/p>\n\n\n\n<p>It\nis ruled that the activity of assignment is like agreeing to transfer the\nleasehold rights. It does not mean further sub-leasing, as the Applicant&#8217;s\nrights as per the Deed of sub-lease stands extinguished after assignment.<\/p>\n\n\n\n<p>The authority further held that the Sub-lessor&#8217;s transfer fee is the amount payable to the Sublessor for offering a service in the course or furtherance of business, in terms of section 2 (17) (d) of the GST Act. Therefore, the GST to be paid on such a transfer fee is admissible as an 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\/latest-cbic-has-notified-provision-for-aadhaar-authentication-in-gst-registration-india\/\">Latest : CBIC has notified Provision for Aadhaar Authentication in GST Registration<\/a><\/mark><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Irrigation_and_Flood_control_Department\"><\/span>Irrigation and Flood control\nDepartment<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The\nWB Authority of Advance Ruling has ruled that a 5% tax applicable to the\nIrrigation and Flood control Department, Govt of Jammu &amp; Kashmir. The\nIrrigation and Flood control Department has granted the Applicant, Reach\nDredging Ltd. a contract to construct the channels across Hokersar Wetland\nalong the old alignment of flood spill channel, including the dredging of\ndrainage flowing into Hokersar Wetland and side slope protection. The Applicant\nsubmits work allotment order and relevant documents. He provides a price\nschedule that defines the work and its value and contends that he is furnishing\nworks contract service of earthwork in excavation and re-excavating the\ndrainage channels. It consists more than 75% of the value of the contract.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Issues of the case<\/h3>\n\n\n\n<p>The\nApplicant seeks a decision on whether Sl No. 3 (vii) of Integrated Tax (Rate)\nhas been amended from time to time, applies to the above supply. The Authority\nof Advance Ruling opined that Entry No. 3 (vii) of the IGST Notification states\nthat a supply is taxable at the rate of 5% if the contract is a composite supply\nof works contract as defined u\/s 2(119) of the GST Act, involving earthwork\nwhich exceeds 75% of the contract value.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Ruling of the AAR<\/h3>\n\n\n\n<p>The\ntwo-member bench ruled that the Applicant&#8217;s supply to the Irrigation and Flood\ncontrol Department is taxable under Entry No. 3(vii) of Notification No 8\/2017\n\u2013 Integrated Tax (Rate) as amended from time to time.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Wular_Conservation_and_Management_Authority\"><\/span>Wular Conservation and Management\nAuthority<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The\nWB Authority of Advance Ruling (AAR) ruled that 5% tax applicable on supply to\nWular Conservation and Management Authority. The Wular Conservation and\nManagement Authority conferred the Applicant a contract for the dredging of\nWular lake and its feeder channels and strengthened embankments of the lake.\nThe Applicant asks a ruling on whether Sl No. 3(vii) of Notification No 08\/2017\nIntegrated Tax (Rate) dated June 28, 2017, as revised from time to time,\npertains to the supply above.<\/p>\n\n\n\n<p>Entry\nNo. 3 (vii) of the Notification states that supply is payable at the rate of 5%\nif the contract is a composite supply of works contract as specified u\/s 2(119)\nof the GST Act, including earthwork surpassing 75% of the contract value and\nthe recipient is the Central Government, State Government, Union Territory,\ngovernment authority or a government entity.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Issues of the Case<\/h3>\n\n\n\n<p>The\nAAR opined that Notification No. 311 dated September 25, 2012, of the Forest\nDepartment of State Government that the recipient is constituted as an\nauthority u\/s 3(1) of the J &amp; K Development Act, 1970 for preservation and\nconservation of Wular Lake. The Board of the recipient, constituted the same\nday by Notification No. 314, ensures 100% control of the Union Territory.<\/p>\n\n\n\n<p>It\nbroadly adheres to the function of developing urban forestry, conservation of\necology and evironment delegated to the municipality under article 243W of the\nConstitution. Hence, the recipient is a Governmental Authority within the ambit\nof para 5(ix) of the IGST Notification.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Ruling of AAR<\/h3>\n\n\n\n<p>The\ntwo-member bench ruled that the Applicant&#8217;s supply, to the Wular Conservation\nand Management Authority, is taxable under Sl No. 3(vii) of Notification No\n8\/2017.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Three-wheeled_electrically_Operated_Motor_Vehicle\"><\/span>Three-wheeled electrically\nOperated Motor Vehicle<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The\nWB Authority of Advance Ruling (AAR) ruled that 12% GST applicable on\nthree-wheeled electrically advanced motor vehicles. The Applicant submitted\nthat the goods it manufactures are supplied with the battery pack and,\ntherefore, should be classified under HSN 8703, is an electrically operated\nthree-wheeled motor vehicle.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Facts of the case<\/h3>\n\n\n\n<p>The\nApplicant asked the authority of advance ruling on the concern of whether such\na three-wheeled vehicle must be classified as an &#8220;electrically operated\nmotor vehicle&#8221; under HSN 8703 when supplied with a battery pack.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Issue of the case<\/h3>\n\n\n\n<p>The\ntwo-member bench noted that the motor vehicles for carrying less than ten\npassengers are categorized under the Heading 8703 of the First Schedule of the\nCustoms Tariff Act, 1975, which is affirmed in the GST Act for classification.<\/p>\n\n\n\n<p>The\nauthority further remarked that Sub-heading 8703 10 covers the vehicles\nspecially designed for travelling on snow, golf cars, and similar vehicles. The\nterm &#8216;similar&#8217; narrows the extent to specific use other than carrying\npassengers on hire on regular roads.<\/p>\n\n\n\n<p>&#8220;A\nthree-wheeled motor vehicle without a battery pack does not have the requisite\ncharacter of an &#8216;electrically running vehicle.&#8217; However, it is neither a\nvehicle outfitted with an internal combustion engine. Except it is equipped\nwith any device like solar panels that supply energy from locomotion, the\nvehicle is not classifiable as a vehicle under Sub-heading 8703 of the Tariff\nAct.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Ruling of AAR<\/h3>\n\n\n\n<p>The\nauthority ordered that a three-wheeled motor vehicle is classifiable under HSN\n8703 as an electrically advanced vehicle, provided it is fitted with the\nbattery.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Decision_by_the_Karnataka_Appellate_Authority_of_Adavance_Ruling_on_Whole_Wheat_Parota_Malabar_Parota\"><\/span>Decision by the Karnataka Appellate Authority of Adavance\nRuling on Whole Wheat Parota &amp; Malabar Parota <span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The\nKarnataka Appellate Authority of Advance Ruling (AAAR) when setting aside the\norder of Authority of Advance Ruling (AAR) ruled that 18% GST is applicable on\nWhole Wheat Parota and Malabar Parota is void ab initio.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Facts of the case<\/h3>\n\n\n\n<p>The\nApplicant is a food products company in the preparation and supply of a wide\nrange of ready to cook, fresh foods including idli &amp; dosa batter, Parotas,\nChapatis, curd, paneer, whole wheat paratha, and Malabar Parota. The Appellant\nmanufactures Parotas applying natural ingredients. The Parotas need to be\ncooked on a pan or Tawa, before consumption, for improved taste and crispiness.\n<\/p>\n\n\n\n<p>The\nMalabar Parotas can be kept in a cool and dry place and have a shelf life of up\nto 4 days. The wheat parottas are recommended to be refrigerated for retaining\nthe freshness up to 7 days.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Issue of the case<\/h3>\n\n\n\n<p>The\nAppellant proposed the AAR seeking a ruling on the issue of whether the\npreparation of Whole Wheat paratha and Malabar parotta be incorporated under\nChapter heading 1905, attracting GST at the rate of 5%. The AAR vide its order\nruled that the product parota is listed under Chapter Heading 2106 and is not\ncovered entry No. 994 of Schedule I to the Notification No.1\/2017-Central Tax\n(Rate), as amended vide Notification No.34\/2017-Central Tax (Rate). Hence,18%\nof Goods and Service Tax is applicable.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Ruling of AAR<\/h3>\n\n\n\n<p>The\nappellate authority ruled that the ruling given by AAR wherein 18% GST\napplicable on Whole Wheat Parota and Malabar Parota is void ab initio because\nit was vitiated by the process of suppression of material facts.<\/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 WB Authority of Advance Ruling ruled that 12% GST applicable on three-wheeled electrically advanced motor vehicles. The WB Authority of Advance Ruling also ruled that 5% tax applicable on supply to Wular Conservation and Management Authority. The WB Authority of Advance Ruling ruled that a 5% tax applicable to the Irrigation and Flood control Department, Govt of Jammu &amp; Kashmir. The WB Authority of Advance Ruling (AAR) ruled that 5% tax applicable on supply to Wular Conservation and Management Authority. The WB Authority of Advance Ruling ruled that 12% GST applicable on three-wheeled electrically advanced motor vehicles.<\/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\/list-of-goods-and-services-where-gst-is-applicable-latest-rates\/\">List of Goods and Services where GST is Applicable: Latest Rates<\/a><\/mark><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The following are the latest notifications of WB Authority of Advance Ruling for the applicability of GST rate in Various Sectors. Those are explained below- Leasehold Right on Land The WB Authority of Advance Ruling directed that assignment of leasehold right on land is taxable at the rate of 18% under Goods and service tax. [&hellip;]<\/p>\n","protected":false},"author":18,"featured_media":18212,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[16,153],"tags":[1130],"acf":{"service_id":"96"},"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":3353,"readingTime":6,"_links":{"self":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/18206"}],"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=18206"}],"version-history":[{"count":4,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/18206\/revisions"}],"predecessor-version":[{"id":18211,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/18206\/revisions\/18211"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media\/18212"}],"wp:attachment":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media?parent=18206"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/categories?post=18206"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/tags?post=18206"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}