TaxTMI 
TaxTMI 
2019 (10) TMI 1013
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....e CGST Act, 2017 & KGST Act 2017, in FORM GST ARA-01, discharging the fee of Rs. 5,000/- each under the CGST Act and the KGST Act. 2. The Applicant is a Private Limited Company and is registered under the Goods and Services Act, 2017. The applicant has sought advance ruling in respect of the following question: What is the HSN Code and rate of tax payable under GST Act for the e-campus solutions supplied by the applicant? 3. The applicant furnishes some facts relevant to the stated activity inter alia staling that they are into the business of supplying e-campus solutions to various organisations and the consideration is received as a onetime investment and also running maintenance. The consideration is also inclusive of soft....
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....ves the annual maintenance of the entire product. The contract is for multiple years and the consideration for the contract is to be received in two instalments in each year. 5.4 The contract is examined and found that a) the applicant shall provide various materials as contracted like Branded Interactive white board, ceiling mount Kit and projector, CPUs with speaker with legal version software. It shall also provide Digital content. b) The applicant shall also provide Cabinets for safety of the e-class desktops. c) The applicant will take care of the maintenance of the equipments provided for a period extending to multiple years after the warranty period, i.e. extended warranty. d) Further, the appli....
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....ct period, the institution should pay to the company 80% of the entire contract value and retain the infrastructure of the hardware high end products, Digital contents, etc. 2. Manpower service (Training cost, digital content, back office support and annual maintenance cost for hardware): Will he recurring investment as and when services are rendered to the institution, this service cost of the value included in the project is 20% of the project value. If the institution opts for exiting the contract in between the contract period, the institution should pay to the company only for the service received period only." 5.6 The applicant states that they are providing various solutions and the details are as under: Langu....
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....ries, Biometric devises, I-VRM server, Touch Screen Kiosk, integration with Tally, GPS bases Vehicle Tracking System for school buses etc, or (b) VAPS E-CAMPUS SAAS MODEL with facilities The applicant bills them in equal instalments of the project value @ 20% for each year from the School. 5.7 The applicant is raising invoices to the schools and the same are examined and found that the applicant is arriving at the total project cost on the basis of students and calculating the instalment amount applicable to the academic year and charging GST at 18% on the same, in case of e-Classrooms. In case of Language Labs and Digital Campus also the same methodology is adopted. 5.8 The applicant has declared that the contract is for provid....
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....the e-class room and this infrastructure is taxable under Projects under Chapter 98 and is taxable at 9% CGST under entry no. 453 of the Schedule III to the Notification No. 1/2017- Central Tax (Rate) dated 28.06.2017. 5.11 However the supply in these cases is leasing of infrastructure which is covered under SAC 997329 the description of which is "Leasing or rental services concerning other goods". 5.12 Regarding the rate of tax, the entry no. 17 of Notification No.11/2017 -Central Tax (Rate) dated 28.06.2017 is verified in item (iii) reads as under: Sl No. Chapter, Section or Heading Description of Service Rate (per cent.) Condition 17 Heading 9973 (Leasing or rental services, with or without operator) (i....