In re TCG Urban Infrastructure Holdings Pvt. Ltd (GST AAAR West Bengal)
The West Bengal Appellate Authority for Advance Ruling (WBAAAR) under the Goods and Services Tax (GST) regime has set aside a previous ruling by the state’s Authority for Advance Ruling (WBAAR) concerning the classification and applicable tax rate for services provided by TCG Urban Infrastructure Holdings Private Limited. The WBAAAR has remanded the case back to the WBAAR for a fresh decision, citing the complexity of determining whether fitted assets provided to tenants constitute ‘goods’ or form part of ‘immovable property’ and whether the service qualifies as a ‘transfer of the right to use goods’.
The case involves TCG Urban Infrastructure Holdings Private Limited (TCGUIH), which provides infrastructure assets such as air conditioning systems, fire sprinkler systems, DG sets, and electrical installations on a hire basis to tenants occupying properties held by its subsidiary companies. Since the inception of GST, TCGUIH had been classifying these services under SAC heading 997314 and paying GST at a rate of 28%, applying entry serial no. 17(iii) of Notification No. 11/2017– Central Tax (Rate), which covers “Transfer of the right to use any goods… for cash, deferred payment or other valuable consideration,” attracting the same rate of tax as on the supply of like goods.
