Authority for Advance Ruling (AAR)

Whether the work being undertaken by the applicant as a sub-contractor for conversion of Short Welded Rails (“SWR”) to Long Welded Rails (“LWR”) by Flash Butt Welding process on the railway tracks would fall under Heading 9954 or 9988 and what would be the rate of tax of such supply.

1) Whether GST is leviable on compensation amounts such as liquaidated damages / trade settlement / damages collected from the customers for non-performing of contractual obligations or breach of the contract? 

2) If GST is leviable on the said activity, what is the HSN Code applicable and the rate of GST applicable for the said activity?

 3) If GST is not leviable on the said activity, does the restriction of input tax Credit of common services under 42 & 43 of CGST/APGST Rules, 2017 will attract?

Whether supply of services being undertaken by the applicant for removal of hump (silt/ earth/ manure/ sludge etc.) by dredging from Ghumanhera Bridge to Jhatikar Bridge of Najafgarh Drain as awarded by the Irrigation and Flood Control Department, Government of Delhi shall be covered under Sl. No. 3A of Notification No. 12/2017- Central Tax (Rate) dated 28.06.2017.

What would be the classification of printing and supply of (i) text book to JCERT, (ii) ‘Bilingual Parental Calendar’ to JEPC (iii) notebook and (iv) comprehensive Report Progress Card to the Education Department, Government of Assam.

Whether the upfront premium payable by the applicant towards the services of leasing of the land for industrial purposes by Shyama Prasad Mookerjee Port, Kolkata is exempted under entry 41 of Notification No. 12/2017 Central Tax (Rate) dated 28.06.2017.

In case of sale and buyback transactions, whether the input tax credit is admissible in respect of goods purchased from outsourced vendors, when payment is settled through book adjustment against the debt created on outward supplies to these vendors.

Whether supply of services being undertaken by the applicant for removal of hump (silt/ earth/ manure/ sludge etc.) by dredging from Ghumanhera Bridge to Jhatikar Bridge of Najafgarh Drain as awarded by the Irrigation and Flood Control Department, Government of Delhi shall be covered under Sl. No. 3A of Notification No. 12/2017- Central Tax (Rate) dated 28.06.2017.

M/s. DRS Cargo Movers Private Limited, Hyderabad, informed that they intended to withdraw their application of Advance Ruling. The request was considered. The application filed by M/s. DRS Cargo Movers Private Limited, Hyderabad was withdrawn as infructuous.

1) Whether original car seat covers which are manufactured and designed to permanently fit over the raw foam seat of the vehicle by the OEMs as well as the seat manufactures who further sell to OEMs and are sold with me vehicle as an essential and integral of part of seat is classifiable under HSN 9401 as “ Seats (other than those of heading 9402) whether or not convertible into beds, and parts thereof other than seats of kind used for aircraft” and is liable to GST @ 18 % vide Sl. No. 435Aunder Schedule III of Notification No.1/2017- Central tax (rate) dt.28.06.2017 as amended by Notification no.41/2017 Central Tax (rate) dt.14.11.2017

Under the GST Provisions, whether activity relating to Sale/Transfer of leasehold Land and building and also to obtain permission for such sale would be taxable?

1. In the instant case the GST as applicable on the upfront called premium amount as a cost of land and building.

2. If answer Yes, then ITC will be eligible to buyer, may be further use against the supply of their manufactured products.

3. Applicability of Notification no- 12/2017 serial No-41 Heading 9972 One-time upfront amount (called as premium, Salami, Cost, price, development charges or by any other name) leviable in respect of the service, by way of granting long term (thirty Years, or more) lease of industrial plots, provided by the State Government Industrial Development  Corporations or Undertakings to Industrial as GST Tax Nil. The plot was issued by the Noida authority on long terms deed for 99 years.