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Maharashtra Aar: No Advance Ruling If Question Raised by Recipient of Supplies

Maharashtra Aar: No Advance Ruling If Question Raised by Recipient of Supplies

AAR recently has given an important ruling dated 22 January 2020, where applicant is  a receiver of supply of services from VFS Global in case of Municipal Corporation of Greater Mumbai [2020] 114 taxmann.com 238 (AAR - MAHARASHTRA) which is discussed as below: Facts of the Case

  • The Applicant (MCGM) is availing services from VFS Global, by way of provision for Citizen Facilitation Centres (CFC), where a window for payment of Tax from the citizens under the jurisdiction of MCGM is provided. This facility is used by citizens to make payments of various taxes such as Property Tax, Water Cess etc. VFS raises invoices, based on the number of receipt issued to the Customers as per the contract terms and conditions. Major part of the service charges by VFS is for providing manpower for collecting the tax from citizens. As per the contract, VFS provides the necessary equipment’s/material like Printers, Consumables, Blank receipt, Printer, Cartridges, computer etc, which is used for provision of the said services.
Issue Involved
  • Whether services provided by VFS global to the applicant are in the nature of collection services should be exempt from GST?
Ruling
  • As per the provisions of section 95 of CGST Act, AAR can give a ruling to the applicant on matters or questions raised, in relation to the supply of goods or services or both being undertaken or proposed to be undertaken by the applicant.
  • AAR rejected the application as the applicant is recipient of services and not supplier of services.
Source: https://mcusercontent.com/76d4537775f402afa508fb0fd/files/47fea550-a620-48b5-b2cd-89f88ff18c3a/Municipal_Corporation_of_Greater_Mumbai_In_re.pdf

 

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