ITC is not available on ambulance purchased for employees prior to 01/02/2019 even if obligatory under Factories Act,1948: AAR West Bengal

ITC is not available on ambulance purchased for employees prior to 1st Feb 2019 even if obligatory under Factories Act, 1948.

Back Ground:

Aassessee, a manufacturer of agriculture machine bought ambulance on 22/11/2018 for employees as it was obligatory for him under Factories Act, 1948. Before 1st Feb 2019.  

As per Section 17(5), the Input tax credit was not allowed on the above, however amendment Act, exception carved out under Section 17(5)(b)(iii)(A) of the GST Act for services which are obligatory for an employer to provide to its employees under any law for the time being in force is limited only to rent-a-cab, life insurance and health insurance. 

Assessee wants to avail the credit of the ambulance as mentioned above.

Held:

Eligibility for claiming the input tax credit under section 16(1) is subject to the provisions of law at the time of occurrence of the taxable event, irrespective of when the claim is made. The second proviso to section 17(5)(b) of the GST Act, as it stands post-amendment effective from 01/02/2019, is not applicable to a transaction made in November 2018.

The Input tax credit is not admissible on the ambulance purchased in November 2018.

Sweeping of premises (Public or Residential) is not eligible for exemption as "Sanitation and similar Service: West Bengal AAR

Issue:

Can Sweeping of Premises - Public or residential be considered as "Sanitation or similar Service" and be exempt from GST as per Sr. No. 3 or 3A (supply of certain services to the government, local authority, governmental authority, or government entity. The service should be an activity in relation to any function entrusted to a Panchayat under Art 243G of the Constitution or to a Municipality under Art 243W of the Constitution) of Notification 12/2017 (CR)?

Held:

"Sanitation and similar services‟ are classified under SAC 99945. It includes sweeping and cleaning, but only with reference cleaning of a road or street. Sweeping of premises – public or residential – is not classified under "Sanitation or similar service‟, Sweeping service that the Applicant supplies to the Housing Directorate cannot, therefore, be classified as an activity in relation to any function entrusted to a Panchayat under Article 243G of the Constitution or in relation to any function entrusted to a Municipality under Article 243W of the Constitution.

Sweeping Service that the Applicant supplies to the Housing Directorate of the Government of West Bengal, cannot be classified as an activity in relation to any function entrusted to a Panchayat under Article 243G of the Constitution or in relation to any function entrusted to a Municipality under Article 243W of the Constitution. The exemption under Sl No. 3 or 3A, as the case may be, of Notification No 12/2017-CT (Rate) dated 28.06.2017 and WB Govt Gazette Notification-1136-FT dated 28.06.2017 is not, therefore, applicable to such supplies. So such service shall be taxable under GST.

In Advance Ruling of NIS Management Ltd. By WEST BENGAL AUTHORITY FOR ADVANCE RULING GOODS AND SERVICES TAX. 

The service provided by Man power supplier to Hospital Cum General Medical College and state university do not qualify for the NIL Rate for service received as available to educational institute: Haryana AAR

The issue:

The applicant is providing Security agency service to Hospital cum General Medical College and state university (Educational Institute). So the applicant is seeking clarification regarding whether such service would be liable at "NIL" rate according to the Sr. No. 66 of notification no. 12/2017 Central Tax (Rate) which is as follows:
Following Shall attract "NIL" rate of tax
"Service provided -
a. by an educational institute to its students, faculty and staff
b. to an educational institute - By way of
  i. transportation of students, faculty, and staff.
 ii. catering, including any mid-day meals scheme sponsored by the CG, SG or UG.
 iii. security or cleaning or housekeeping service performed in such educational institute
iv. service related to admission to, or conduct of examination by such institution, upto higher secondary.
provided nothing contained in the entry (b) shall apply to educational institute other than an institute providing services by way of preschool, education, and education upto higher secondary school or equivalent".
The Decision

The service provided by Man power supplier to Hospital - Cum - General Medical College and state university do not qualify for the exemption under Sr. No.66 of notification 12/2017- Center (Rate) dated 28.6.2017 and corresponding notification 47/ST-2 date 30.06.2017 of state tax because as per the proviso such NIL rate is applicable only to the Preschool and educational institute up to higher secondary school.