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Recent Advance Rulings |
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1. Whether promotion of research and publishing online research journal exempted from GST ? The applicant is an international non-profit organisation registered under Section 8 of the Companies Act, 2013 and also under Section 12AA of the Income Tax Act, 1961 to carry such promotional activities in the field of research i.e. life sciences, physical sciences, environmental sciences, earth sciences, disasters, agriculture among others and publishing of online research journals with respect to aforesaid fields. The applicant has raised aforesaid question stating Notification No. 12/2017 Central Tax (Rate) dated 28.06.2017 and corresponding Notification issued under MP GST Act, 2017, at Entry No. 1, which clearly exempts charitable activities from the ambit of GST. After careful consideration of both the definitions under the Income Tax Act, 1961, CGST Act / MP GST Acts and Notifications, it was cleared that above said promotional activities don’t fall or aptly fit under charitable activities. Hence, the Authority for Advance Ruling, held that applicant’s activities are not in the nature of ‘charitable activities and not eligible for exemptions. 2. Whether the provisions of ‘E-way Bill’ fall under the Jurisdictions of AAR to avail of an advance ruling? The applicant is in the business of refining of edible oils who undertakes delivery of goods pertaining to multiple invoices in a single goods carriage. For a generation of e-way bills, the Tamil Nadu GST Act, 2017, has prescribed ₹ 1 lakh limit. The applicant has sought an advance ruling on the question of whether the e-way bill is required for consignments pertaining to multiple invoices to multiple customers but moved in the same conveyance having an invoice of less than the said limit but in aggregate, the value of the multiple invoices exceeds the specified limit. Section 97(2) of the CGST Act / TNGST Act provides the scope of AAR i.e., the question on which the Advance Ruling can be sought for, they are, classification of any goods or services or both, applicability of a notification issued therein, determination of time and value of supply of goods or services or both, availment of input tax credit on tax paid or deemed to be paid, the liability to pay tax on any goods or services or both, requirement of registration under GST laws and among others. From the above, it was cleared that the Act specifically limits the jurisdiction of AAR to a greater extent. Hence, the Authority for Advance Ruling by rejecting the application held that the provisions of ‘E-way Bill’ do not fall under the Jurisdictions of AAR. 3. Whether goods supplied through ‘Public Distribution System (PDS) exempted from GST? The applicant supplies consumer goods like biscuits, soaps, etc, earmarked for ‘For PDS Supply Only’ to PDS distributors by acting as an associate of the West Bengal Essential Commodities Supply Corporation Ltd. and sought an advance ruling on the aforesaid question. It also emerged from his application that price of whatever goods he supplies are pre-fixed by the Government but costs of packaging, loading, railway freight and demurrage are all borne by him. Since such supplies are not covered under the exemption notification and non-inclusion in the Schedule III of the CGST Act, 2017, the Authority for Advance Ruling held that goods supplied through PDS are liable to GST. To be continued….
By: PRABHAKAR KS - December 16, 2019
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