TaxTMI 
TaxTMI 
2026 (4) TMI 416
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....ST Act, 2017 read with Rule 104 of CGST Rules, 2017 and Section 97 of KGST Act, 2017 read with Rule 104 of KGST Rules, 2017. 2. The applicant is engaged in liquor manufacturing under brand name "Original Choice" and other known brands. Since, the applicant is engaged in the business of liquor manufacturing which is covered under the Karnataka Excise Act, 1965. However, the applicant is into the following transactions for which GST registration is mandatory:- a) Royalty Income-earned from granting vendors the right to sell the product. b) Scrap sales c) Availing Goods Transport Agency (GTA) services, which are subjected to reverse charge mechanism (RCM) under GST law. 3. The applicant submits that they obtain....
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....adjusted against the outstanding balance and do not attract GST as these are in the nature of transactions in money. 7. Applicant's Interpretation of Law:- The Applicant submits the following facts relevant to the issue: 7.1 The applicant claims that the money is out of the scope of the supply and refers section 2(75) of the CGST Act, 2017 as follows:- "money" means the Indian legal tender or any foreign currency, cheque, promissory note, bill of exchange, letter of credit, draft, pay order, traveller cheque, money order, postal or electronic remittance or any other instrument recognised by the RBI when used as a consideration to settle an obligation or exchange with Indian legal tender of another denomination but shall not i....
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....eedings and reiterated the facts narrated in their application. Further, the authorised representative have explained the applicant's position with reference to the issues raised in the AAR application. FINDINGS & DISCUSSION 9. At the outset we would like to make it clear that the provisions of the CGST Act, 2017 and the KGST Act, 2017 are in pari materia and have the same provisions in like matters and differ from each other only on a few specific provisions. Therefore, unless a mention is particularly made to such dissimilar provisions, a reference to the CGST Act would also mean reference to the corresponding similar provisions in the KGST Act. 10. We have considered the submissions made by the applicant in their application for....
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.... requires the existence of consideration and a corresponding quid pro quo between the supplier and the recipient. In the present case, the rebate is granted by the bank as a post-transaction financial adjustment linked to the usage of the corporate card and is not attributable to any independent or identifiable supply of goods or services by the applicant to HSBC Bank. 15. The rebate received by the applicant merely results in a reduction of the outstanding monetary liability payable to the bank. Such adjustment is in the nature of a transaction in money involving money, falling within the definition of "money" under Section 2(75) of the CGST Act, 2017 as mentioned in para 7.1 above, and does not constitute consideration for any supply. ....