The Maharashtra Goods and Services Tax Act, 2017
Circulars

The Commissioner of Goods and Services Tax, Maharashtra State, has issued Circular bearing No. 39T of 2019 dated 5/7/2019 by which certain Circulars issued by CBIC in relation to certain provisions of Goods and Services Tax Law, procedures to be followed, methodology to be adopted, are explained.

Case: Sanofi India Ltd [2019-TIOL-182-AAR-GST (Maharashtra)]

Held that the applicants are not entitled to ITC of GST paid on expenses incurred towards promotional schemes - Shubh Labh Loyalty programe and goods given as “brand reminders” to its distributors, wholesalers, doctors etc., since, the distribution of promotional articles to the customers (distributors, wholesalers, doctors etc.) is free and hence, it is nothing but gift and ITC on gifts is not allowed as per of section 17(5) of CGST Act,2017.

Case: Daimler Financial Services India Pvt. Ltd. [2019-TIOl-212- AAR-Tamilnadu]

The interest subvention / interest subsidy received by applicant from any other person other than their customer (i.e. who obtains loan) shall be leviable to GST and not exempt under entry 28 of notification 9/2017 –IGST (Rate). The said interest subvention is a consideration for agreeing to provide loans at lower interest rate to the customers of a car dealer & hence taxable supply. The interest subvention paid by Mercedes Benz in the instant case to applicants is to ensure higher and assured standard of services to the clients of applicant who are also the buyers of MB India’s vehicles.