Decisions on Goods and Services Tax (GST) Delivered by Authority Of Advance Ruling (AAR), West Bengal, Kolkata
The Authority held that retrospective insertion of Section 16(5) does not permit reclaim of ITC already reversed under earlier rulings. It clarified that the amendment only overrides Section 16(4) and does not dilute other eligibility conditions under Section 16.
The West Bengal AAR rejected an advance ruling application on hotel construction ITC after finding that GST enforcement proceedings on the same issue had already begun. The authority held that Section 98(2) bars admission of applications where identical questions are pending before tax authorities.
The West Bengal AAR held that PP Packing Boxes manufactured from plastic granules qualify as plastic packing articles under tariff item 39231090. The ruling also clarified the classification of lids, caps, and closures under HSN 39235090.
The West Bengal AAR ruled that laundry soap and toilet soap are separate products under GST classification. Laundry soap bars weighing less than 500 grams were held taxable at 18%.
The AAAR observed that customers were only informed about an unspecified Transporter facilitated through the e-commerce platform. It held that absence of certainty regarding the contracting party weakened the claim of an independent GTA service.
The AAR held that flavored non-alcoholic beverages without fruit pulp fall under tariff item 22029990 and attract 20% CGST plus 20% SGST under Schedule III.
The AAR held that although security services to FCI qualify as pure services related to Public Distribution System functions, exemption under Notification 12/2017 is unavailable as FCI is not Central/State Government or local authority.
The ruling clarifies that services involving collection and transport of waste without transfer of goods are pure services. As these are rendered to a local authority in relation to functions under the Twelfth Schedule, they are exempt from GST.
The West Bengal AAR held that hookah, whether tobacco or herbal, is not covered under Clause 6(b) of Schedule II as it is inhaled and not ingested. It ruled that hookah supply is a composite supply of goods and taxable at higher GST rates.
The applicant sought advance ruling on composite supply and ITC reversal for bundled beverage mixes with free accessories. The Authority admitted the application but disposed it as withdrawn after the applicant cited commercial unviability.
