Case Law Details
In re State Industries Promotion Corporation of Tamilnadu Limited (GST AAR Tamil Nadu)
The State Industries Promotion Corporation of Tamil Nadu Limited (SIPCOT) posed some pertinent questions to the GST Authority for Advance Rulings (AAR) in Tamil Nadu. The queries mostly centered around the taxability under the prevailing GST laws for various services they offer. This article delves deep into each question and the corresponding analysis.
Q1. Whether the Supply of raw water and its incidental charges are liable to be taxed under the prevailing GST Laws. Answer: No, the supply of raw water and its incidental charges such as Interest for delay in payment obligations (Water Charges), Penalty for delay in payment obligations (Water Charges), and Reconnection charges for water supply are not liable to be taxed under the prevailing GST Laws.
Q2. Whether the Maintenance charges for usage of common facilities are liable to be taxed under the prevailing GST Laws. Answer: Yes, the maintenance charges for the usage of common facilities would fall under the category of supply and are thus liable to GST @ 18% under SAC 995429 as per Notification No. 11/2017-Central Tax (Rate), dated 28.06.2017.
Q3. Whether the Participatory Infrastructure Development Scheme (PIDP) charges are liable to be taxed under the prevailing GST Laws. Answer: Yes, the PIDP charges, in the context of infrastructure works, are liable to GST @ 18% under Group 99859 as per Notification No. 11/2017-Central Tax (Rate), dated 28.06.2017.
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