KARNATAKA  ADVANCE RULINGS

1.

M/s Giriraj Renewables Private Ltd..v/s Sri. Harish Dharda, Joint Commissioner of Central Tax, and Dr. Ravi Prasad M.P. Joint Conmissioner of Commercial Taxes

Order dated 21/03/18

Issues:-

a) Whether supply of turnkey Engineering, Procurement & Construction (EPC) Contract for construction of solar power plant wherein both goods and services are supplied can be construed to be a composite Supply in terms of Section 2(30) of CGST Act, 2017.


b) If yes, Whether the Principal Supply in such case can be said to be 'Solar Power Generating System' which is taxable at 5% GST.


c) Whether benefit of concessional rate of 5% of solar power generation system and parts thereof would also be available to sub-contractors.

Crux:-

a) The major component (PV Module) constitute major value of the whole contract in the project which is procured by the owner and not supplied by the contractor, as such, it cannot be construed to be a principal supply of the project and thereby cannot be treated as composite supply defined under Section 2(30) of the CGST Act, 2017. In the absence of natural bundling concept the supply made in this case does not amount to a ‘Composite Supply’.

b) Decision not given as the question is not relevant on account of answer to question no. 1.


c) Supplied made by the sub contactor to be viewed as individual supply and thereby the appropriate rate of GST applied, depending on the specific nature of supply and not the concessional rate.

Source:- http://gst.kar.nic.in/Documents/General/01_GIRIRAJA_LIMITED.pdf

 

2.

M/s Gogte Infrastructure Development corporation Limited v/s Sri. Harish Dharda, Joint Commissioner of Central Tax, and Dr. Ravi Prasad M.P.Joint Conmissioner of Commercial Taxes

Order dated 21/03/18

Issues :-Whether the Hotel Accommodation & Restaurant services provided by applicant , within the premises of the hotel, to the employees and guest of SEZ units be treated as supply of goods & services to SEZ units in the state or not.

Crux :- If the hotel is located in DTA, then supply of services to the guests and employees of SEZ unit is intra state supply and is taxable accordingly and  provisions of Section 16(1)(b) of IGST Act, 2017 not attracted.

Source :- http://gst.kar.nic.in/Documents/General/02_GOGTE_LIMITED.pdf

 

3.

 

M/s Skilltech Engineers & Contractors (P) Ltd. v/s Sri. Harish Dharda, Joint Commissioner of Central Tax, and Dr. Ravi Prasad M.P. Joint  Commissioner of Commercial Taxes

Order dated 21/03/18

Isuues :-

l.Whether the contract, executed by applicant for KPTCL, is a divisible contract [Supply of goods & Supply of Services] or an indivisible contract [ works contract]?


2.Whether the tax rate of 12% [CCST-6% + SGST-6%] is applicable to the above contract, in pursuance of NotificationNo.24/2017-Central Tax (Rate) dated 21.09.2017?.

Crux :-

1. The contract of the applicant is of the nature of indivisible and falls under the 'Work Contract' which is a supply of service.


2. The Applicant is not entitled for the benefit of concessional rate of GST @ 12% under Notification No.24/2017 -Central Tax (Rate) dated 21.09.2017 as the same is available only to a statutory body created by Parliament or a State Legislature. 

Source :-  http://gst.kar.nic.in/Documents/General/03_SKILL_LIMITED.pdf

 

4.

M/s Sayre Therapuetics (P) Ltd. v/s Sri. Harish Dharda, Joint Commissioner of Central Tax, and Dr. Ravi Prasad M.P. Joint Conmissioner of Commercial Taxes

Order dated 21/03/18

Issues :-

1.Whether the applicant qualifies as clinical establishment, and 

2. Whether services (oncology & immunology therapy and diagnostic related product)  provided by them are covered under Health care services and exempt for tax.

Crux :-

1.Services provided by the applicant are at clinical establishment and are covered under clause 2(s) of the Notification no. 12/2017- Central Tax (Rate) dated 28.06.2017  

2. Services provided by the applicant qualifies to be a Health Care Service and exempt from Tax.

Source :-http://gst.kar.nic.in/Documents/General/05_SAYRE_LIMITED.pdf

 

 

 

5.

M/s Tathagat Health Care Centre LLP v/s Sri. Harish Dharda, Joint Commissioner of Central Tax, and Dr. Ravi Prasad M.P. Joint Conmissioner of Commercial Taxes

Order dated 21/03/18

Issue:-Whether GST is leviable on the rent payable by the hospital, providing life saving service.

Crux:-Rent paid on non-residential premises is chargeable to GST even though the out put service being provided from the leased premises is exempted.

Source:- http://gst.kar.nic.in/Documents/General/04_TATAGHATA_LLP.pdf

 

6.

M/s Rajashri Foods (P) Ltd. v/s Sri. Harish Dharda, Joint Commissioner of Central Tax, and Dr. Ravi Prasad M.P. Joint Conmissioner of Commercial Taxes

Order dated 23/04/18

Issues:-

1.Whether the transaction of selling one manufacturing unit along with all fixed assets , current assets & liabilities for a lump sum consideration treated "supply of goods or supply of service or supply of goods & services"

2.Whether the transaction would cover under Sl No. 2 of the Notification No. 12/2017-Central Tax (Rate) dated 28.06.2017

Crux:-

1.Sale of business as a going concern by the applicant is a supply of service.


2.Service by way of transfer of business as a going concern is exempt under Sl No. 2 of the Notification No. 12/2017-Central Tax (Rate)


Source:http://gst.kar.nic.in/Documents/General/06_RAJASHREE_LIMITED.pdf