India – GST Weekly Update.

GST Council Tentatively to Meet on 20th Sept in Goa

 

• The healthcare industry's demand on input tax credit is likely to be considered.
• The Council is also likely to do a comprehensive review of the current revenue position, especially deliberating on measures needed to curb GST evasion and ramp up collections.
• Currently the Council is unlikely to take any representation from the auto sector for their demands on rate cut.
• The Council may take a review of the current revenue trends, return filing trends etc. and see what are the measures needed to boost collections.

 

C. M. S. Info Systems Ltd vs The Commissioner, CGST And Ors – 9th July, 2019: Bombay High Court (Writ Petition No. 5801 OF 2019)

 

• The order of High Court came in context of impugned order dated 6th August, 2018, through which the AAAR ruled that input tax credit is not available on purchase of motor vehicles to carry cash.
• The fundamental submission of the petitioner before the AAAR was the fact that money would stand covered by the definition of 'goods' under Section 2(52) of the CGST Act so long as the same is not used as legal tender.
• The submission though recorded, has not been dealt with at all in the impugned order, thus the court held that “we note that the decision making process has not been complied with by the Authority. It is necessary for the Authority to consider the submissions made by the parties before it and give its findings in the context of the submissions made.”
• The High Court set aside the impugned order of the AAAR and restored the matter to the AAAR for fresh disposal in accordance with law.

 

Goa AAR – M/s Chowgule Industries Private Limited – 26th March 2019 (Advance Ruling No. GOA/GAAR/07 of 2018-19/4796)

 

• The Input Tax Credit on the Motor Vehicle purchased for demonstration purpose can be availed as Input Tax Credit on Capital Goods and set off against output tax payable under GST.
• The applicant used to purchase vehicles against tax invoices which were reflected books of accounts of applicant as Capital Assets, the vehicles were used as demo cars for providing trial run to customers.

 

Maharashtra AAR – Puranik Construction Pvt. Ltd. – 20th March 2019 (No. GST – ARA – 99/2018-19/B-31)

 

The matter arose with a question/issue regarding the eligibility of Notification 01/2018-Central Tax (Rate) dated 25.01.2018 which provides for concessional rate of GST @ 12% on supply of works contract service in respect of original works pertaining to construction of a Low Cost House in an Affordable Housing Project. The Maharashtra AAR passed the following order in this matter

 

• The applicant will be eligible for concessional rate @ 12% in the project as per the facts of the matter.
• The concessional rate will be applicable only for residential units of upto 60 sq. mts., in their project and not for commercial units.

 

Maharashtra AAR – Multiple Alternate Asset Management Company – 06th March 2019 (No. GST – ARA – 81/2018-19/B-25)

 

The Maharashtra AAR ordered as under

 

• GST is applicable on the Advisory and Management Fees received in Indian Currency from Domestic contributors located in India for the services rendered by the applicant Multiple Alternate Asset Management Company.
• GST is applicable on the Advisory and Management Fees received in Foreign Currency from Overseas contributors located outside India for the services rendered by the applicant Multiple Alternate Asset Management Company.