In re Safset Agencies Pvt Ltd. (GST AAAR Maharashtra)
The AAR has not given any ruling on collectibles/memorabilia and collectible books; the reason being given is that no specific details of such goods are given. In the grounds of appeal presented before the AAR, the appellant has described such goods as only ‘collectibles’ and ‘memorabilia and collectibles’. They have not dwelt at length as to what commodities are covered in that category. The appellant has stated that ‘collectibles and memorabilia’ encompasses clothing, support equipment, spectacles, accessories etc. The above description is of general nature. The appellant has not given any further description as to whether they are bought from individual art collectors or not. Also, the appellant has asked for separate ruling on collectible books and antique books. It is not known whether they are same or not. Also no specific explanation is given as to what is the difference between collectible books and antique books. For the above reason, we agree with the Ruling of the AAR.
FULL TEXT OF ORDER OF APPELLATE AUTHORITY OF ADVANCE RULING, MAHARASHTRA
PROCEEDINGS
(Under Section 101 of the Central Goods and Services Tax Act, 2017 and the Maharashtra Goods and Services Tax Act, 2017)
At the outset, we would like to make it clear that the provisions of both the CGST Act and the MGST Act are the same except for certain provisions. Therefore, unless a mention is specifically made to such dissimilar provisions, a reference to the CGST Act would also mean a reference to the same provisions under the MGST Act.
The present appeal has been filed under Section 100 of the Central Goods and Services Tax Act, 2017 and the Maharashtra Goods and Services Tax Act, 2017 [hereinafter referred to as “the CGST Act and MGST Act”] by Safset Agencies Pvt Ltd. (herein after referred to as the “Appellant”) against the Advance Ruling No. GST-ARA-86/2018-19/B-7 dated 15.01.2019.
BRIEF FACTS OF THE CASE
1. This Appeal is being filed by Safset Agencies Private Limited (Astaguru.com) against ruling no. GST-ARA-86/2018-19/B-7 dated 15.01.2019 pronounced by Maharashtra Authority for Advance Ruling (“AAR”). The said order was served to appellant on 14.06.2019 through email.
2. Applicant, having Good and Service Tax (“GST”) Registration No. 27 AABCS9352H 1Z4.
3. Appellant is a dealer dealing in various goods such as paintings, vintage collectibles, sculptures, classic miniatures paintings, fine writing instruments, vintage timepieces, celebrity memorabilia, aristocratic jewellery and vintage cars.
4. Appellant usually procures the abovementioned goods on approval basis from unregistered as well as registered persons (“sellers”). Appellant displays all such goods on its website and conducts the auction sale in respect of such goods. The goods are sold to the highest bidder in the auction.
5. The standard business process of Appellant is as under:-
i. Intending seller and Appellant sign an ‘on approval contract’ wherein intending seller agrees to sell his goods to the appellant on approval basis at mutually agreed price.
ii. On receipt of goods on approval and being satisfied with quality and authenticity of the goods, Appellant uploads the details of goods for on line auction.
iii. The goods remain in the possession of Appellant during the mutually agreed period of approval. Appellant has right to retain or return the goods during the approval period. Either approval is granted by Appellant within 6 months from the date on which it receives the said goods and purchases the same at mutually agreed price or returns the said goods to the intending seller.
iv. After conveying the approval and confirming purchase of goods, Appellant sells the goods to buyer (highest bidder) in auction.
v. Appellant issues the sales invoice to the buyers.
vi.Ownership of auctioned goods is transferred from Appellant to buyer on issuance of invoice by Appellant.
6. The appellant deals in painting, old jewellery, cars, watches, memorabilia/collectibles and antiques. Appellant is predominantly a dealer in personal effects (second hand or used goods) procured or bought from users or collectors.
7. There are different practices prevailing in the trade as to classification, valuation and applicable GST rates on goods dealt in by the appellant.
Appellant had filed an application before the AAR seeking a ruling on classification, valuation and applicable GST rates on goods dealt by the Appellant. The purpose of appellant going for advance ruling was to have absolute clarity as to its tax obligation.
Appellant sought advance ruling in respect of determination of classification, valuation and GST rates applicable to various goods dealt with by it.
8. AAR admitted the appellant’s application in preliminary hearing held on 28.11.2018.
9. AAR passed order no. GST-ARA-86/2018-19/B-7 on 15.01.2019 specifying the classification, valuation and applicable GST rates on goods dealt by the Appellant.
10. The gist of points on which advance ruling was sought by the Appellant and the ruling thereon given by Honorable AAR is as under:
