Page 75 - GSTL_20th August 2020_Vol 39_Part 3

2020 ] IN RE : LAKSHMI TULASI QUALITY FUELS 289
methodology and by nature of the equipment/tools, the activity of reimburse-
ment towards Lost in hole/Damage Beyond repair of equipment/tools is rightly
classifiable as ‘Supply of Goods’ in terms of Section 7 of the CGST Act, 2017. De-
pending upon the nature of actual goods involved in the subject activity, their
classification is as per HSN notified for the goods and the Classification Rules
made in this regard. Accordingly, the provisions relating to chargeability and
levy of GST under the CGST Act and the Rules made thereunder as applicable to
the supply of goods will apply.
RULING
Question : Whether reimbursement received towards LIH equipment
can be considered as a supply as per Section 7 of the CGST
Act, 2017 and hence, liable to GST?
Answer : Affirmative
Question : If reimbursement received towards LIH equipment can be
considered as supply and liable to GST, what would be the
classification and the rate of GST applicable on such supply?
Answer : The reimbursement received towards LIH equipment is clas-
sifiable as ‘Supply of Goods’ in terms of Section 7 of the
CGST Act, 2017. Depending upon the nature of actual goods
involved in the subject activity, their classification is as per
HSN notified for the goods and the Classification Rules
made in this regard. Accordingly, the provisions relating to
chargeability and levy of GST under the CGST Act and the
Rules made thereunder as applicable to the supply of goods
will apply.
_______

2020 (39) G.S.T.L. 289 (A.A.R. - GST - A.P.)

BEFORE THE AUTHORITY FOR ADVANCE RULING UNDER GST,
ANDHRA PRADESH

S/Shri D. Ramesh, Member (State Tax) and M. Sreekanth,
Member (Central Tax)
IN RE : LAKSHMI TULASI QUALITY FUELS
AAR No. 12/AP/GST/2020, dated 5-5-2020
Renting for commercial purposes - Considering the number of rooms
and amenities provided in it, boarding and hospitality services extended to the
inmates and all the clauses of the lease agreements, the building appears to be
constructed for the purpose of running a lodge house - Lessee engaged in
commercial activity of renting of rooms in the dwelling and providing board-
ing and hospitality services to the inmates - Applicant rented out her dwelling
for commercial activity, and supply of such services are classifiable as ‘Rental
or Leasing services involving own or leased non-residential property” under
Service Code (Tariff) 9972 12 - Said service taxable in the hands of the lessor
and is liable for IGST @ 18%. [para 7]
Ruling in favour of department
GST LAW TIMES  20th August 2020  75