Goods and Services Tax – GST – By: – Dr. Sanjiv Agarwal – Dated:- 27-8-2018 Last Replied Date:- 27-8-2018 – Advance rulings are important in any tax law as it provides a forum for clarification and possible interpretation of statutory provisions. Moreover, it conveys the legislative intention from the revenue s view point. Provisions of advance ruling are contained in section 95 to 106 of CGST Act, 2017 and State / UT GST enactment. Rules 103 to 107 of also provide for forms, manner, certification etc. The Authority for Advance Rulings (AAR) have been set up in all the states and we have now over 100 advance rulings on different issues already pronounced by various State Authorities. The appellate mechanism for filing appeals against AAR rulings is also in place and we have about ten such appellate orders already pronounced. One major issue presently being faced is about multiple authorities (equal to number of States), each pronouncing a ruling of its own even if the matter is covere
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act involved only a minor fraction of earth work and therefore, such composite supply of works contract service for maintaining railway tracks would be taxable at the rate of 18% GST. Further, such service could be classifiable under Heading No. 995429 under GST. [In Re Sreepati Ranjan Gope & Sons (2018) 5 TMI 370 (AAR-West Bengal); ] Advance Ruling on liquidated damages In the instant case, based on agreement entered into by applicant, Maharashtra State Power Generation Company Ltd. with BHEL for purpose of erection, testing and commissioning of main plant package, there were no such clauses in agreement as would tantamount to reducing contract price or contract value of supplies of goods or services or both as made by Contractor on account of delay in delivery of manufactured goods. In fact, levy of liquidated damages had been specifically identified as an independent levy. The contract price variation clause in impugned agreement did not provide for variation on account of liqui
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ght bills. Applicant argued that it is not a goods transport agency (GTA) for applicability of Notification No. 9/2017 – IT (Rate) dated 28/06/2017, which, granted exemption on transportation services provided by an entity other than GTA. As applicant is not a GTA, supply of transportation services is exempt from GST vide the exemption notification. It has been ruled that the applicant supplies works contract service, of which freight and transportation is merely a component of overall services and not a separate and independent activity and GST is to be paid @ 18% on the entire value of the composite supply, including supply of materials, freight and transportation, erection, commissioning etc. It was also held that reference to a notification under the IGST Act should be contract specific, where an inter-state supply is taking place. In this application general nature of a supply is being dealt with rather than the place of any particular supply. Moreover, West Bengal Authority for A
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