Goods and Services Tax – GST – By: – Dr. Sanjiv Agarwal – Dated:- 27-11-2018 – 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 200 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 twenty such appellate orders confirming or modifying the AAR orders. 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 covered by s
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said goods fall under Chapter Heading 8438 of Tariff and whether GST shall be applicable @18%. The Authority for Advance Ruling ruled that 'Ice cream making machine' is classifiable under Tariff heading 84.18 of Customs Tariff Act, 1975 instead of 8438 and GST rate applicable to said product at the rate 28% [Mitora Machinex (P.) Ltd., In re (2018) 6 TMI 624 (AAR,Gujarat); ] The assessee made an application before the Authority for Advance Ruling and sought ruling on the following issues : Whether Tariff Heading 8535 covers products 'Electrical apparatus for switching or protecting electrical circuits or for making connections to or in electrical circuits for a voltage exceeding 1,000 volts and product Lighting Arrester is specifically covered under Tariff Heading 8535 Whether Earthing Pipe specifically processed to make solely and principally for lightning arrester system and placed below ground level and connected with Lighting Arrester System and is classifiable under Tar
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AT ] Where the assessee made an application before the Authority for Advance Ruling and sought ruling on whether roof ventilators are classifiable as air or vacuum pumps under heading 8414 of Customs Tariff as adopted by GST. As per the Rules for Interpretation of Customs tariff as made applicable to GST Tariff and General rules for Interpretation of the schedule, classification of Goods shall be governed by certain principles laid down therein. As per these general rules for interpretation, the heading which provides the most specific description shall be preferred to headings providing a more general description. The primary function of these Roof ventilators is to provide ventilation by continuous extraction of air from the building. Even in trade parlance these goods are identified as Roof ventilators only and not as Windmills as contested by the applicant. Hence, in accordance with the general rules for interpretation, these Roof ventilators are correctly classifiable under the he
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Advance Ruling on activities relating to agricultural produce Where the assessee is engaged into the activities of cleaning of the various Agriculture produce like saunf (fennel), dhaniya (coriander), Jeera (cumin seeds), etc. or the like goods which are brought to them by the farmers or by the traders. Such agricultural produce contains dust particles, certain small pieces of stones, dust, mud and other impurities etc. The applicant is having cleaning plant and they remove the various impurities but do not change the essential character of the agriculture produce but make the product marketable for primary market. The assessee made an application before Authority of Advance Ruling and sought ruling on whether the activity of cleaning agricultural produce such a saunf, dhaniya (Coriander), jeera (cumin seeds), etc. by removing impurities like dust particles, stones, etc. carried in cleaning plant shall be fully exempt from GST under Notification Nos. 11/2017-C.T. (Rate) and 12/2017- C.
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