Author: admin_gst

Goods and Services Tax – GST – By: – Saurabh Chokhra – Dated:- 2-2-2019 Last Replied Date:- 13-2-2019 – Topic: ITC eligibility on works contract and construction activities Impacted Industry: Construction, Works Contract Definition of works contract and construction under GST law Works contract has been defined u/s 2(119) of the CGST Act, 2017 as a contract for building, construction, fabrication, completion, erection, installation, fitting out, improvement, modification, repair, maintenance, renovation, alteration or commissioning of any immovable property wherein transfer of property in goods (whether as goods or in some other form) is involved in the execution of such contract. It is worthwhile to note that the above definition covers only certain works performed on immovable property as works contract. Unlike the service tax regime the works contract no longer cover works performed on movable property. Further, it is only when there is transfer of property in goods involved is the

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service for further supply of works contract service; d) goods or services or both received by a taxable person for construction of an immovable property (other than plant or machinery) on his own account including when such goods or services or both are used in the course or furtherance of business Explanation.-For the purposes of this Chapter and Chapter VI, the expression plant and machinery means apparatus, equipment, and machinery fixed to earth by foundation or structural support that are used for making outward supply of goods or services or both and includes such foundation and structural supports but excludes – (i) land, building or any other civil structures; (ii) telecommunication towers; and (iii) pipelines laid outside the factory premises. The provisions restrict credit of works contract services for works to be performed on immovable property and also restrict the credit of construction related activity of immovable property even when construction activity not fall into

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contractor is supplying service only without any supply of goods. Works contract may or may not be a construction. Like there may be activities like installation, fabrication, which may qualify as works contract but cannot be covered in the definition of construction. Test of immovable property: It is important to determine whether property is movable or immovable as it is first and foremost thing which include or exclude the activity from the scope of works contract or construction activity and will have impact of ITC eligibility or otherwise. The term has not been defined in GST law. Immovable property is defined in Section 3(26) of the General Clauses Act, 1897 to include land, benefits to arise out of land and things ATTACHED TO THE EARTH, or permanently fastened to anything attached to the earth. Further, test of immovable property to be applied on the totality basis. For instance- the doors of building are movable and can be removed but the same are integral part of building and

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charged off to revenue. 2. FIXING OF DOOR- Door which is fixed to complete a room will be integral part of the building and therefore, will be immovable property if seen along with building. Fixing of door is alteration/addition to building (immovable property) is covered in the definition of construction as defined under sec 17(5)(c) and (d) and therefore, works contract, if the cost of renovation is capitalised. ITC not available if the cost of construction is capitalised. If the cost charged to revenue then ITC is available. 3. Renovation of security office located at the entry gate Such renovation is covered in the definition of construction as defined under sec 17(5)(c) and (d) and therefore, works contract, if the cost of renovation is capitalised. ITC not available if the cost of construction is capitalised. If the cost charged to revenue then ITC is available. Crux of determination of ITC on works contract and construction activity: Step 1: Check if the activity is to be perfor

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Goods and Services Tax – GST – By: – AttnVivek Jalan – Dated:- 2-2-2019 – Section 1 :Short title, extent and commencement (1) This Act may be called the Integrated Goods and Services Tax (Amendment) Act, 2018. (2) It shall come into force on such date as the Central Government may, by notification in the Official Gazette, appoint: Provided that different dates may be appointed for different provisions of this Act and any reference in any such provision to the commencement of this Act shall be construed as a reference to the coming into force of that provision. Previously it was read as : (1) This Act may be called the Integrated Goods and Services Tax Act, 2017. (2) It shall extend to the whole of India. (3) It shall come into force on such date as the Central Government may, by notification in the Official Gazette, appoint: Provided that different dates may be appointed for different provisions of this Act and any reference in any such provision to the commencement of this Act shall

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Previously it was read as : Explanation.-For the purposes of this clause, the expression governmental authority means an authority or a board or any other body,- (i) set up by an Act of Parliament or a State Legislature; or (ii) established by any Government, with ninety per cent. or more participation by way of equity or control, to carry out any function entrusted to a municipality under article 243W of the Constitution; Commentary For Amendment u/s 2(6) – There are certain payments received in INR through Nostro/Vostro Accounts for Goods/Services supplied abroad. The payment for such transactions though such accounts are received in INR. Here is an explanation to highlight how a Nostro and a Vostro account works in the most simplified terms. Nostro in Latin literally means ours and Vostro means yours. Take a bank in India, Bank A for example. A gets a lot many remittances and trade related money sent home from Japan to India. However, A does not have a banking license in Japan. So A

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the tax in relation to such supply of goods or services or both. . Previously it was read as : (4) The integrated tax in respect of the supply of taxable goods or services or both by a supplier, who is not registered, to a registered person shall be paid by such person on reverse charge basis as the recipient and all the provisions of this Act shall apply to such recipient as if he is the person liable for paying the tax in relation to the supply of such goods or services or both. Commentary – The objective to amend Section 5 of the Act empowering the Central Government is to notify classes of registered persons to pay tax on reverse charge basis in respect of receipt of supplies of certain specified Categories of goods or services or both from unregistered suppliers; As decided by the GST Council, Reverse Chanrge u/s 5(4) of IGST Act may be applicable only on certain class of persons, maybe with a Turnover beyond a threshold. Section 8 : Intra-State supply. Explanation 1.-For the pur

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h goods. . Previously it was read as : (8) The place of supply of services by way of transportation of goods, including by mail or courier to,- (a) a registered person, shall be the location of such person; (b) a person other than a registered person, shall be the location at which such goods are handed over for their transportation. Commentary – The objective to amend Section 12 of the Act is to provide that if the transportation of goods is to a place outside India, the place of supply shall be the place of destination of such goods; Section 13 :Place of supply of services where location of supplier or location of recipient is outside India. (3) The place of supply of the following services shall be the location where the services are actually performed, namely:- (a) services supplied in respect of goods which are required to be made physically available by the recipient of services to the supplier of services, or to a person acting on behalf of the supplier of services in order to p

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vices: Provided that when such services are provided from a remote location by way of electronic means, the place of supply shall be the location where goods are situated at the time of supply of services: Provided further that nothing contained in this clause shall apply in the case of services supplied in respect of goods which are temporarily imported into India for repairs and are exported after repairs without being put to any other use in India, than that which is required for such repairs; Commentary – Place of supply in case of any treatment or process (which may not come within the four corners of the definition of job work) done on goods temporarily imported into India and then exported without putting them to any other use in India, to be outside India. Section 17 :Apportionment of tax and settlement of funds. New sub section inserted after sub-section (2): (2A). The amount not apportioned under sub-section (1) and sub-section (2) may, for the time being, on the recommendati

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GST – States – ORDER NO.02/2019 – Dated:- 2-2-2019 – FINANCE SECRETARIAT ORDER NO.02/2019 No. FD 47 CSL 2017, Bengaluru, dated 02/02/2019 WHEREAS, sub-section (4) of Section 52 of the Karnataka Goods and Services Tax Act, 2017 (Karnataka Act 27 of 2017) (hereafter in this Order referred to as the said Act) provides that every operator who collects the amount specified in sub-section (1) shall furnish a statement, electronically, containing the details of outward supplies of goods or services or both effected through it, including the supplies of goods or services or both returned through it, and the amount collected under sub-section (1) during a month, in such form and manner as may be prescribed, within ten days after the end of such mon

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GST – Classification – Power Bank – the principal function of the said Power Bank remains the same i.e storing and supplying of electric energy and ‘hence the said product merits classification of the

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GST – Composite supply or principal supply? – supply of books by CHHATTISGARH TEXT BOOK CORPORATION as per instruction of School Education Department CG after printing the Syllabus – merits considerat

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GST – Exempted supply or not – supply of services to Solid waste management, Garbage Collection, Disposal, Water Supply, Cleaning of Colony – Pure Services – Chhattisgarh Housing Board – Benefit of exemption allowed. – TMI Updates – Highlights

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GST – Whether recovery of Parents Health Insurance expenses from employee in respect of the insurance provided by the Applicant amounts to “supply of service” – Held No – Applicant cannot claim input

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GST – Input tax credit – GST paid for hotel stay in case of rent free hotel accommodation provided to employees of the Applicant – ITC is not available in view of section 17(5)(g) – TMI Updates – Highlights

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Income Tax – Settlement commission order – Chairman and the Vice Chairman of a Settlement Commission are appointed from amongst serving Chief Commissioners or Principal Chief Commissioners or Principal Commissioner of Income Tax of equivalent rank and which again is a relevant factor for the Department to ponder, whether at all any order of a Settlement Commission unless staring on statutory violation or on perversity, should be assailed in a routine manner as having been done in the present cas

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GST – Started By: – ARPIT OJHA – Dated:- 1-2-2019 Last Replied Date:- 4-2-2019 – Hello everyone,My query is how to account for the rejected material by the purchaser in Books of Account. The purchaser is denying to issue Debit Note / Rejection Memo. Sale Invoice has already been raised. – Reply By YAGAY andSUN – The Reply = You can simply issue a credit note. As per the provisions of GST Laws, Credit Notes/Debit Notes can only be issued by the seller of goods. – Reply By Spudarjunan S – The Reply = Issue a tax credit note with the GST component as per section 34 of CGST Act, 2017 if you had made domestic taxable supplies or made zero rated supplies with payment of Integrated Tax. By issuing the Tax credit note you reduce your output tax ta

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GST – Started By: – Pabitra Basak – Dated:- 1-2-2019 Last Replied Date:- 3-2-2019 – Respected Sir / Madam,Suppose I have purchased Raw Material worth ₹ 10,00,00,000.00 G.S.T. rate 5 % therefore input G.S.T. is ₹ 50,00,000.00 now i have sold goods worth ₹ 5,00,00,000.00 for ₹ 7,50,00,000.00 as domestic sale G.S.T. rate 5 % and goods worth Rs. 50,00,000.00 for Rs 7,50,00,000.00 as deemed export rate 0.1 %. Therefore my total output G.S.T. stands for ₹ 37,50,000.00 for domestic and ₹ 75,000.00 for deemed export. My question is whether i am eligible refund of remaining input G.S.T. or not and if i am eligible for refund then under which scheme am i eligible for refund i.e. whether refund under unutilised cre

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News – GST, the biggest taxation reform, led to increase in tax base, higher collections and ease of trade Rates continuously reduced providing relief of about ₹ 80,000 crore annually to consume

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GST, the biggest taxation reform, led to increase in tax base, higher collections and ease of trade Rates continuously reduced providing relief of about ₹ 80,000 crore annually to consumers Most items of daily use of poor and middle class now in the 0% or 5% tax slab Average GST collection in the current financial year stands at ₹ 97,100 crore per month as compared to ₹ 89,700 crore per month in the first year GST council to appoint a group of ministers to examine and make recommendations to reduce GST burden on home buyers – Budget – Dated:- 1-2-2019 – Ministry of Finance Posted On: 01 FEB 2019 1:26PM by PIB Delhi The Goods and Services Tax (GST) reforms has resulted in increased tax base, higher collections and ease of t

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ssessments. The Minister said that now returns are fully online and e-way bill system is in place. Inter-state movements have become faster, more efficient, and hassle free with no Entry Tax, check posts, and truck queues among others. The Finance Minister, Shri Goyal said, The high taxation levied on multiple commodities in the pre-GST regime has been rationalised and the burden on the consumer, especially the poor and the middle class, has been significantly reduced. The GST Council, comprising the Centre and States/UTs, finalised the GST rates collectively mostly lower than pre-GST rates. Since then, GST has been continuously reduced providing relief of about ₹ 80,000 crore annually to consumers. Most items of daily use of the poor

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te and have to file one annual return only. Similarly, small service providers with turnover upto ₹ 50 lakhs can now opt for composition scheme and pay GST at 6% instead of 18%. More than 35 lakh small traders, manufacturers and service providers will benefit from these trader friendly measures. Soon, businesses comprising over 90% of GST payers will be allowed to file quarterly return, the Minister added. The Finance Minister asserted that in spite of such major rate reductions and relaxations, revenue trends are encouraging. He said, The average monthly tax collection in the current year is ₹ 97,100 crore per month as compared to ₹ 89,700 crore per month in the first year. The State revenues are improving with guaranteed

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GST – Started By: – SATHYHA DEEP – Dated:- 1-2-2019 Last Replied Date:- 4-2-2019 – We are doing Water & Waste Water Treatment Projects to both State & Central Government Organizations like NIMHANS, BHEL, BWSSB etc. Have a few Queries/Clarifications for which we seek expert opinion.1) What is the GST Rates for execution of Projects – For Ex: If we undertake execution of STP, WTP Project, which includes Civil work, Erection & Commissioning of Electro Mechanized Equipment till completi

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Goods and Services Tax – GST – By: – AttnVivek Jalan – Dated:- 1-2-2019 – ANALYSIS OF CENTRAL TAX NOTIFICATIONS N No 1/2019 – Central Tax (Rate) – Reverse Charge on unregistered purchases is still on hold The notifications No 8/2017 Central Tax (Rate) has been rescinded as it has become irrelevant consequent to amendment to Sec 9(4) of The CGST Act 2017. The Reverse Charge on Unregistered Purchases shall be on hold till the government specifies category of persons u/s 9(4) on whom reverse charge for unregistered purchase shall be applicable. Amended Section 9(4) is as follows – (4) The Government may, on the recommendations of the Council, by notification, specify a class of registered persons who shall, in respect of supply of specified categories of goods or services or both received from an unregistered supplier, pay the tax on reverse charge basis as the recipient of such supply of goods or services or both, and all the provisions of this Act shall apply to such recipient as if he

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e person liable for paying the tax in relation to such supply of goods or services or both. . N No 2/2019 – Central Tax The CGST (Amendment) Act 2018 comes into force w.e.f. 1st February 2019. 1. The CGST (Amendment) Act 2018 comes into force from 1st February 2019 except the following – A. Section 43A of The CGST Act has been deferred. Hence ITC can be still availed in GSTR 3B on provisional basis irrespective of the reflection in GSTR 2A. B. Due to the deferment of Sec 43A, the corresponding amendment to Sec 16(2)(c) of The CGST Act 2017 has also been deferred which subjects the ITC taken to Sec 43A. Hence as of now, ITC can be still availed in GSTR 3B on provisional basis irrespective of the reflection in GSTR 2A. C. Due to the deferment of Sec 43A, the corresponding amendment to Sec 49 of The CGST Act 2017 has also been deferred which provides for the ITC taken to be credited to the ITC ledger in accordance with Sec 43A. D. The amendments to Sec 39 of The CGST Act has been put on h

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parately. The same is done to bring into effect the amendments in Sec 34 so that one Cr/Dr Note can be issued for multiple invoices. 5. Rule 83 – Relaxation in time is given for passing GST Practitioners exam. Further the Scope of Services which may be provided by GST Practitioners are enhanced. 6. Rule 85 & 86 – ITC of IGST can now be adjusted against output CGST & SGST before adjusting the corresponding ITC of CGST & SGST. 7. Rule 89 – The declaration for SEZ has been amended incase of refund. 8. Rule 91 & 92 – Relaxations in rules of validating & re-validating the orders of refunds by officers 9. Amendments have been made in Forms PCT-05, GSTR-4, RFD-1, RFD-1A, APL-01, APL-05. N No 4/2019 – Central Tax 1. The position of Joint Commissioner (Appeals) have been created N No 5/2019 – Central Tax 1. The rate of Tax in case of Composition levy shall be specified in Rule 7 N No 6/2019 – Central Tax & N No 3/2019 – Integrated Tax 1. Arunachal Pradesh, Assam, Himacha

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Goods and Services Tax – GST – By: – AttnVivek Jalan – Dated:- 1-2-2019 Last Replied Date:- 1-2-2019 – THE CENTRAL GOODS AND SERVICES TAX (AMENDMENT) ACT, 2018 (NO. 31 OF 2018) [29th August, 2018] An Act further to amend the Central Goods and Services Tax Act, 2017. BE it enacted by Parliament in the Sixty-ninth Year of the Republic of India as follows:- Short title and commencement 1. (1) This Act may be called the Central Goods and Services Tax (Amendment) Act, 2018. (2) Save as otherwise provided, the provisions of this Act shall come into force on such date as the Central Government may, by notification in the Official Gazette, appoint: Provided that different dates may be appointed for different provisions of this Act and any reference in any such provision to the commencement of this Act shall be construed as a reference to the coming into force of that provision. Old Section: 1. (1) This Act may be called the Central Goods and Services Tax Act, 2017. (2) It extends to the whole

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d to pass any order or decision under this Act, but does not include the Central Board of Excise and Customs, the Revisional Authority, the Authority for Advance Ruling, the Appellate Authority for Advance Ruling, the Appellate Authority and the Appellate Tribunal; (b) in clause (17), for sub-clause (h), the following sub-clause shall be substituted, namely:- (h) activities of a race club including by way of totalisator or a license to book maker or activities of a licensed book maker in such club; and ; Old Clause 17 to Section 2: business includes- (a) any trade, commerce, manufacture, profession, vocation, adventure, wager or any other similar activity, whether or not it is for a pecuniary benefit; (b) any activity or transaction in connection with or incidental or ancillary to sub-clause (a); (c) any activity or transaction in the nature of sub-clause (a), whether or not there is volume, frequency, continuity or regularity of such transaction; (d) supply or acquisition of goods inc

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form of chance to win in betting , gambling or horse racing in a race club is amended to 100% of the face value of the bet or the amount paid into the totalisator. The term services in this clause leads to ambiguity, as actionable claims have been defined as goods in the CGST Act. (c) clause (18) shall be omitted; (d) in clause (35), for the word, brackets and letter clause (c) , the word, brackets and letter clause (b) shall be substituted; Old Clause 35 to Section 2: cost accountant means a cost accountant as defined in clause (c) of sub-section (1) of section 2 of the Cost and Works Accountants Act, 1959 (23 of 1959); (e) in clause (69), in sub-clause (f), after the word and figures article 371 , the words, figures and letter and article 371J shall be inserted; Old Clause 69 to Section 2: local authority means- (a) a Panchayat as defined in clause (d) of article 243 of the Constitution; (b) a Municipality as defined in clause (e) of article 243P of the Constitution; (c) a Municipal

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one form, currency or denomination, to another form, currency or denomination for which a separate consideration is charged. Commentary : services shall include facilitating or arranging transactions in securities, eg. – some service charges or service fees or documentation fees or broking charges or such like fees or charges are charged in relation to transactions in securities. Amendment of section 7 3. In section 7 of the principal Act, with effect from the 1st day of July, 2017,- (a) in sub-section (1), – (i) in clause (b), after the words or furtherance of business; , the word and shall be inserted and shall always be deemed to have been inserted; (ii) in clause (c), after the words a consideration , the word and shall be omitted and shall always be deemed to have been omitted; (iii) clause (d) shall be omitted and shall always be deemed to have been omitted; (b) after sub-section (1), the following sub-section shall be inserted and shall always be deemed to have been inserted, n

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eferred to in Schedule II. (2) Notwithstanding anything contained in sub-section (1),- (a) activities or transactions specified in Schedule III; or (b) such activities or transactions undertaken by the Central Government, a State Government or any local authority in which they are engaged as public authorities, as may be notified by the Government on the recommendations of the Council, shall be treated neither as a supply of goods nor a supply of services. (3) Subject to the provisions of sub-sections (1) and (2), the Government may, on the recommendations of the Council, specify, by notification, the transactions that are to be treated as- (a) a supply of goods and not as a supply of services; or (b) a supply of services and not as a supply of goods. Commentary – The objective to amend Section 7 of the Act is to clarify the scope of supply; It Inserts a new sub-section (1A) in section 7 and omit clause (d) of sub-section (1). Now, first an activity has to be supply as per S &(1) o

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person shall be paid by such person on reverse charge basis as the recipient and all the provisions of this Act shall apply to such recipient as if he is the person liable for paying the tax in relation to the supply of such goods or services or both. Commentary – The objective to amend Section 9 of the Act empowering the Central Government is to notify classes of registered persons to pay the tax on reverse charge basis in respect of receipt of supplies of certain specified categories of goods or services or both from unregistered suppliers; Amendment of section 10 5. In section 10 of the principal Act,- (a) in sub-section (1) – (i) for the words in lieu of the tax payable by him, an amount calculated at such rate , the words, brackets and figures in lieu of the tax payable by him under sub-section (1) of section 9, an amount of tax calculated at such rate shall be substituted; (ii) in the proviso, for the words one crore rupees , the words one crore and fifty lakh rupees shall be sub

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ding,- (a) one per cent. of the turnover in State or turnover in Union territory in case of a manufacturer, (b) two and a half per cent. of the turnover in State or turnover in Union territory in case of persons engaged in making supplies referred to in clause (b) of paragraph 6 of Schedule II, and (c) half per cent. of the turnover in State or turnover in Union territory in case of other suppliers, subject to such conditions and restrictions as may be prescribed: Provided that the Government may, by notification, increase the said limit of fifty lakh rupees to such higher amount, not exceeding one crore rupees, as may be recommended by the Council. (2) The registered person shall be eligible to opt under sub-section (1), if- (a) he is not engaged in the supply of services other than supplies referred to in clause (b) of paragraph 6 of Schedule II; (b) he is not engaged in making any supply of goods which are not leviable to tax under this Act; (c) he is not engaged in making any inter

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or composition scheme. Amendment of section 12 6. In section 12 of the principal Act, in sub-section (2), in clause (a), the words, brackets and figure sub-section (1) of shall be omitted. Old Section: (2) The time of supply of goods shall be the earlier of the following dates, namely:- (a) the date of issue of invoice by the supplier or the last date on which he is required, under sub-section (1) of section 31, to issue the invoice with respect to the supply; or Amendment of section 13 7. In section 13 of the principal Act, in sub-section (2), the words, brackets and figure sub-section (2) of occurring at both the places, shall be omitted. Old Section: (2) The time of supply of services shall be the earliest of the following dates, namely:- (a) the date of issue of invoice by the supplier, if the invoice is issued within the period prescribed under sub-section (2) of section 31 or the date of receipt of payment, whichever is earlier; or (b) the date of provision of service, if the inv

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be substituted. Old Section: (2) Notwithstanding anything contained in this section, no registered person shall be entitled to the credit of any input tax in respect of any supply of goods or services or both to him unless,- (a) he is in possession of a tax invoice or debit note issued by a supplier registered under this Act, or such other tax paying documents as may be prescribed; (b) he has received the goods or services or both. Explanation.-For the purposes of this clause, it shall be deemed that the registered person has received the goods where the goods are delivered by the supplier to a recipient or any other person on the direction of such registered person, whether acting as an agent or otherwise, before or during movement of goods, either by way of transfer of documents of title to goods or otherwise; (c) subject to the provisions of section 41, the tax charged in respect of such supply has been actually paid to the Government, either in cash or through utilisation of input

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re than thirteen persons (including the driver), except when they are used for making the following taxable supplies, namely:- (A) further supply of such motor vehicles; or (B) transportation of passengers; or (C) imparting training on driving such motor vehicles; (aa) vessels and aircraft except when they are used- (i) for making the following taxable supplies, namely:- (A) further supply of such vessels or aircraft; or (B) transportation of passengers; or (C) imparting training on navigating such vessels; or (D) imparting training on flying such aircraft; (ii) for transportation of goods; (ab) services of general insurance, servicing, repair and maintenance in so far as they relate to motor vehicles, vessels or aircraft referred to in clause (a) or clause (aa): Provided that the input tax credit in respect of such services shall be available- (i) where the motor vehicles, vessels or aircraft referred to in clause (a) or clause (aa) are used for the purposes specified therein; (ii) wh

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ts extended to employees on vacation such as leave or home travel concession: Provided that the input tax credit in respect of such goods or services or both shall be available, where it is obligatory for an employer to provide the same to its employees under any law for the time being in force. . Old Section: (3) The value of exempt supply under sub-section (2) shall be such as may be prescribed, and shall include supplies on which the recipient is liable to pay tax on reverse charge basis, transactions in securities, sale of land and, subject to clause (b) of paragraph 5 of Schedule II, sale of building. (5) Notwithstanding anything contained in sub-section (1) of section 16 and subsection (1) of section 18, input tax credit shall not be available in respect of the following, namely:- (a) motor vehicles and other conveyances except when they are used- (i) for making the following taxable supplies, namely:- (A) further supply of such vehicles or conveyances ; or (B) transportation of

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ods or services or both or as part of a taxable composite or mixed supply; and (iv) travel benefits extended to employees on vacation such as leave or home travel concession; Commentary – The objective to amend Section 17 of the Act is to specify the scope of input tax credit. S 17 (3) – No reversal will be required in cases falling under Sch III – including High seas sales, etc. Availment of ITC allowed on activities or transactions specified in Schedule III (other than sale of land and, subject to clause (b) of paragraph 5 of Schedule II, sale of building) by excluding it from the ambit of exempt supply on which ITC is blocked. Sec 17 (5) (a), new (aa) & (b) – Blocked Credit Pruned – Motor Vehicles – input tax credit would now be available in respect of dumpers, work-trucks, fork-lift trucks and other special purpose motor vehicles, vessels and aircraft when these are used for personal purposes. ITC allowed for motor vehicles used for transportation of money for or by a banking c

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d further that the Government may, at the request of a special category State and on the recommendations of the Council, enhance the aggregate turnover referred to in the first proviso from ten lakh rupees to such amount, not exceeding twenty lakh rupees and subject to such conditions and limitations, as may be so notified. ; (b) in the Explanation, in clause (iii), after the words State of Jammu and Kashmir , the words and States of Arunachal Pradesh, Assam, Himachal Pradesh, Meghalaya, Sikkim and Uttarakhand shall be inserted. . Old Section: (1) Every supplier shall be liable to be registered under this Act in the State or Union territory, other than special category States, from where he makes a taxable supply of goods or services or both, if his aggregate turnover in a financial year exceeds twenty lakh rupees: Provided that where such person makes taxable supplies of goods or services or both from any of the special category States, he shall be liable to be registered if his aggre

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icate of incorporation giving effect to such order of the High Court or Tribunal. Explanation.-For the purposes of this section,- (i) the expression aggregate turnover shall include all supplies made by the taxable person, whether on his own account or made on behalf of all his principals; (ii) the supply of goods, after completion of job-work, by a registered job worker shall be treated as the supply of goods by the principal referred to in section 143, and the value of such goods shall not be included in the aggregate turnover of the registered job worker; (iii) the expression special category States shall mean the States as specified in sub-clause (g) of clause (4) of article 279A of the Constitution except the State of Jammu and Kashmir Commentary – The objective to amend Section 22 of the Act is to enhance the exemption limit for registration in the special category States from ten lakh rupees to twenty lakh rupees; Amendment of section 24 12. In section 24 of the principal Act, i

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iple places of business in a State or Union territory may be granted a separate registration for each such place of business, subject to such conditions as may be prescribed. . Old Section: (1) Every person who is liable to be registered under section 22 or section 24 shall apply for registration in every such State or Union territory in which he is so liable within thirty days from the date on which he becomes liable to registration, in such manner and subject to such conditions as may be prescribed: Provided that a casual taxable person or a non-resident taxable person shall apply for registration at least five days prior to the commencement of business. Explanation.-Every person who makes a supply from the territorial waters of India shall obtain registration in the coastal State or Union territory where the nearest point of the appropriate baseline is located. (2) A person seeking registration under this Act shall be granted a single registration in a State or Union territory: Prov

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ll be inserted, namely:- Provided further that during pendency of the proceedings relating to cancellation of registration, the proper officer may suspend the registration for such period and in such manner as may be prescribed. . Old Section: (1) The proper officer may, either on his own motion or on an application filed by the registered person or by his legal heirs, in case of death of such person, cancel the registration, in such manner and within such period as may be prescribed, having regard to the circumstances where,- (a) the business has been discontinued, transferred fully for any reason including death of the proprietor, amalgamated with other legal entity, demerged or otherwise disposed of; or (b) there is any change in the constitution of the business; or (c) the taxable person, other than the person registered under sub-section (3) of section 25, is no longer liable to be registered under section 22 or section 24. (2) The proper officer may cancel the registration of a p

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n is under process; Amendment of section 34 15. In section 34 of the principal Act,- (a) in sub-section (1),- (i) for the words Where a tax invoice has , the words Where one or more tax invoices have shall be substituted; (ii) for the words a credit note , the words one or more credit notes for supplies made in a financial year shall be substituted; (b) in sub-section (3),- (i) for the words Where a tax invoice has , the words Where one or more tax invoices have shall be substituted; (ii) for the words a debit note , the words one or more debit notes for supplies made in a financial year shall be substituted. Old Section: (1) Where a tax invoice has been issued for supply of any goods or services or both and the taxable value or tax charged in that tax invoice is found to exceed the taxable value or tax payable in respect of such supply, or where the goods supplied are returned by the recipient, or where goods or services or both supplied are found to be deficient, the registered perso

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in respect of such supply, the registered person, who has supplied such goods or services or both, shall issue to the recipient a debit note containing such particulars as may be prescribed. Commentary: A Dealer may Issue One Credit note for multiple Invoices. A change has to be made in the GST Portal also. It may be noted here that this is a procedural matter which was causing great hardship to dealers where specific Credit notes were required to be made for each invoice. However a practice was followed by the dealers to tag the last invoice only with the credit note in addition to providing an annexure of all invoices linked thereto in the hard copy. Such procedure followed for removal of difficulties till date should also be considered leniently by the field officers. Amendment of section 35 16. In section 35 of the principal Act, in sub-section (5), the following proviso shall be inserted, namely:- Provided that nothing contained in this sub-section shall apply to any department o

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ords in such form, manner and within such time as may be prescribed shall be substituted; (ii) the words on or before the twentieth day of the month succeeding such calendar month or part thereof shall be omitted; (iii) the following proviso shall be inserted, namely:- Provided that the Government may, on the recommendations of the Council, notify certain classes of registered persons who shall furnish return for every quarter or part thereof, subject to such conditions and safeguards as may be specified therein. ; (b) in sub-section (7), the following proviso shall be inserted, namely:- Provided that the Government may, on the recommendations of the Council, notify certain classes of registered persons who shall pay to the Government the tax due or part thereof as per the return on or before the last date on which he is required to furnish such return, subject to such conditions and safeguards as may be specified therein. ; (c) in sub-section (9),- (i) for the words in the return to b

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ion (1) or sub-section (2) or sub-section (3) or sub-section (5), shall pay to the Government the tax due as per such return not later than the last date on which he is required to furnish such return. (9) Subject to the provisions of sections 37 and 38, if any registered person after furnishing a return under sub-section (1) or sub-section (2) or sub-section (3) or sub-section (4) or sub-section (5) discovers any omission or incorrect particulars therein, other than as a result of scrutiny, audit, inspection or enforcement activity by the tax authorities, he shall rectify such omission or incorrect particulars in the return to be furnished for the month or quarter during which such omission or incorrect particulars are noticed, subject to payment of interest under this Act: Provided that no such rectification of any omission or incorrect particulars shall be allowed after the due date for furnishing of return for the month of September or second quarter following the end of the financ

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supplies by the supplier on the common portal, for the purposes of availing input tax credit by the recipient shall be such as may be prescribed. (4) The procedure for availing input tax credit in respect of outward supplies not furnished under sub-section (3) shall be such as may be prescribed and such procedure may include the maximum amount of the input tax credit which can be so availed, not exceeding twenty per cent. of the input tax credit available, on the basis of details furnished by the suppliers under the said sub-section. (5) The amount of tax specified in the outward supplies for which the details have been furnished by the supplier under sub-section (3) shall be deemed to be the tax payable by him under the provisions of the Act. (6) The supplier and the recipient of a supply shall be jointly and severally liable to pay tax or to pay the input tax credit availed, as the case may be, in relation to outward supplies for which the details have been furnished under sub-sectio

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the word and figures section 45 , the words and to perform such other functions shall be inserted. Old Section: (2) A registered person may authorise an approved goods and services tax practitioner to furnish the details of outward supplies under section 37, the details of inward supplies under section 38 and the return under section 39 or section 44 or section 45 in such manner as may be prescribed. Amendment of section 49 20. In section 49 of the principal Act,- (a) in sub-section (2), for the word and figures section 41 , the words, figures and letter section 41 or section 43A shall be substituted; (b) in sub-section (5),- (i) in clause (c), the following proviso shall be inserted, namely:- Provided that the input tax credit on account of State tax shall be utilised towards payment of integrated tax only where the balance of the input tax credit on account of central tax is not available for payment of integrated tax; ; (ii) in clause (d), the following proviso shall be inserted, na

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the State tax shall first be utilised towards payment of State tax and the amount remaining, if any, may be utilised towards payment of integrated tax; (d) the Union territory tax shall first be utilised towards payment of Union territory tax and the amount remaining, if any, may be utilised towards payment of integrated tax; (e) the central tax shall not be utilised towards payment of State tax or Union territory tax; and (f) the State tax or Union territory tax shall not be utilised towards payment of central tax. Insertion of new sections 49A and 49B 21. After section 49 of the principal Act, the following sections shall be inserted, namely:- Utilisation of input tax credit subject to certain conditions. 49A. Notwithstanding anything contained in section 49, the input tax credit on account of central tax, State tax or Union territory tax shall be utilised towards payment of integrated tax, central tax, State tax or Union territory tax, as the case may be, only after the input tax cr

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words and figures section 37 or section 39 shall be substituted. Old Section: (9) Where the details of outward supplies furnished by the operator under sub-section (4) do not match with the corresponding details furnished by the supplier under section 37, the discrepancy shall be communicated to both persons in such manner and within such time as may be prescribed. Amendment of section 54 23. In section 54 of the principal Act,- (a) in sub-section (8), in clause (a), for the words zero-rated supplies , the words export and exports shall respectively be substituted; (b) in the Explanation, in clause (2),- (i) in sub-clause (c), in item (i), after the words foreign exchange , the words or in Indian rupees wherever permitted by the Reserve Bank of India shall be inserted; (ii) for sub-clause (e), the following sub-clause shall be substituted, namely:- (e) in the case of refund of unutilised input tax credit under clause (ii) of the first proviso to sub-section (3), the due date for furnis

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ncil, by notification, specify. Explanation.-For the purposes of this section,- (1) refund includes refund of tax paid on zero-rated supplies of goods or services or both or on inputs or input services used in making such zero-rated supplies, or refund of tax on the supply of goods regarded as deemed exports, or refund of unutilised input tax credit as provided under sub-section (3). (2) relevant date means- (a) in the case of goods exported out of India where a refund of tax paid is available in respect of goods themselves or, as the case may be, the inputs or input services used in such goods,- (i) if the goods are exported by sea or air, the date on which the ship or the aircraft in which such goods are loaded, leaves India; or (ii) if the goods are exported by land, the date on which such goods pass the frontier; or (iii) if the goods are exported by post, the date of despatch of goods by the Post Office concerned to a place outside India; (b) in the case of supply of goods regarde

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ch claim for refund arises; (f) in the case where tax is paid provisionally under this Act or the rules made thereunder, the date of adjustment of tax after the final assessment thereof; (g) in the case of a person, other than the supplier, the date of receipt of goods or services or both by such person; and (h) in any other case, the date of payment of tax. Commentary: S 54 of CGST Act & S 2(6)(iv) of IGST Act – Service Exports even if payment is received in INR as allowed by RBI would be treated as exports and refunds would also be available against the same. Please see detailed discussion in the commentary u/s 2(6) of The IGST Act 2018. Amendment of section 79 24. In section 79 of the principal Act, after sub-section (4), the following Explanation shall be inserted, namely:- 'Explanation.-For the purposes of this section, the word person shall include distinct persons as referred to in sub-section (4) or, as the case may be, sub-section (5) of section 25.'. Old Section:

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sub-section (6) of Section 107 of the Act relating to Appeals so as to provide that the amount of pre-deposit payable for filing of appeal shall be capped at twenty five crore rupees; Amendment of section 112 26. In section 112 of the principal Act, in sub-section (8), in clause (b), after the words arising from the said order, the words subject to a maximum of fifty crore rupees, shall be inserted. Old Section: (8) No appeal shall be filed under sub-section (1), unless the appellant has paid- (a) in full, such part of the amount of tax, interest, fine, fee and penalty arising from the impugned order, as is admitted by him, and (b) a sum equal to twenty per cent. of the remaining amount of tax in dispute, in addition to the amount paid under sub-section (6) of section 107, arising from the said order, in relation to which the appeal has been filed. Amendment of section 129 27. In section 129 of the principal Act, in sub-section (6), for the words seven days , the words fourteen days sh

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(ii) clause (iv) shall be omitted and shall always be deemed to have been omitted; (c) in the Explanation 2- (i) for the word, brackets and figure sub-section (5) , the words, brackets and figures sub-sections (1) and (5) shall be substituted and shall always be deemed to have been substituted; (ii) clause (iv) shall be omitted and shall always be deemed to have been omitted; (d) after Explanation 2 as so amended, the following Explanation shall be inserted and shall always be deemed to have been inserted, namely:- 'Explanation 3.-For removal of doubts, it is hereby clarified that the expression eligible duties and taxes excludes any cess which has not been specified in Explanation 1 or Explanation 2 and any cess which is collected as additional duty of customs under sub-section (1) of section 3 of the Customs Tariff Act, 1975 (51 of 1975).'. Old Section: (1) A registered person, other than a person opting to pay tax under section 10, shall be entitled to take, in his electroni

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ise specified in the Second Schedule to the Central Excise Tariff Act, 1985 (5 of 1986); and (vii) the National Calamity Contingent Duty leviable under section 136 of the Finance Act, 2001 (14 of 2001) ; in respect of inputs held in stock and inputs contained in semi-finished or finished goods held in stock on the appointed day. Explanation 2.-For the purposes of sub-section (5), the expression eligible duties and taxes means- (i) the additional duty of excise leviable under section 3 of the Additional Duties of Excise (Goods of Special Importance) Act, 1957 (58 of 1957); (ii) the additional duty leviable under sub-section (1) of section 3 of the Customs Tariff Act, 1975; (51 of 1975) (iii) the additional duty leviable under sub-section (5) of section 3 of the Customs Tariff Act, 1975; (51 of 1975) (iv) the additional duty of excise leviable under section 3 of the Additional Duties of Excise (Textile and Textile Articles) Act, 1978; (40 of 1978.) (v) the duty of excise specified in the

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or a further period not exceeding one year and two years respectively. . Old Section: 1 (b) supply such inputs, after completion of job work or otherwise, or capital goods, other than moulds and dies, jigs and fixtures, or tools, within one year and three years, respectively, of their being sent out from the place of business of a job worker on payment of tax within India, or with or without payment of tax for export, as the case may be: Provided that the principal shall not supply the goods from the place of business of a job worker in accordance with the provisions of this clause unless the said principal declares the place of business of the job worker as his additional place of business except in a case- (i) where the job worker is registered under section 25; or (ii) where the principal is engaged in the supply of such goods as may be notified by the Commissioner. Amendment of Schedule I 30. In Schedule I of the principal Act, in paragraph 4, for the words taxable person , the wor

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aragraph 6, the following paragraphs shall be inserted, namely:- 7. Supply of goods from a place in the non-taxable territory to another place in the non-taxable territory without such goods entering into India. 8. (a) Supply of warehoused goods to any person before clearance for home consumption; (b) Supply of goods by the consignee to any other person, by endorsement of documents of title to the goods, after the goods have been dispatched from the port of origin located outside India but before clearance for home consumption. ; (ii) the Explanation shall be numbered as Explanation 1 and after Explanation 1 as so numbered, the following Explanation shall be inserted, namely:- 'Explanation 2.-For the purposes of paragraph 8, the expression warehoused goods shall have the same meaning as assigned to it in the Customs Act, 1962 (52 of 1962).'. Old Section: 1. Services by an employee to the employer in the course of or in relation to his employment. 2. Services by any court or Tri

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Sch III – Items which are neither goods nor services – a. Supply of goods from a place in the non-taxable territory to another place in the non-taxable territory without such goods entering into India; b. Supply of warehoused goods to any person before clearance for home consumption; and There was a clear Double Taxation wherein GST was paid once incase of Bond Sale and thereafter on clearance for home Consumption. While the ITC was available, yet the output tax would be insufficient to set off the ITC. The same can be explained with an Example – i. A imports certain material in India and warehouses the goods. Thus the IGST payable gets deferred. ii. Now A sells the goods to B and the same is covered in Schedule III and there is no IGST iii. When B clears the material from the Bonded warehouse, IGST is paid and B gets the ITC c. Supply of goods in case of high sea sales. High sea sales is a sale carried out by the actual consignee (i.e. the consignee shown in the Bill of Lading) to an

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the GST Council has decided that IGST on high sea sale (s) transactions of imported goods, whether one or multiple, will be levied and collected only at the time of importation i.e. when the import declarations are filed before the Customs authorities for the customs clearance purposes for the first time. Further, any value addition accruing in each such high sea sale will form part of the value on which IGST is collected at the time of clearance. Thus the final buyer would be responsible for payment of GST on the full value of goods plus any value addition, at time of import. The GST Councils decision with respect to GST on high sea sales is similar to that of the rules provided under the Customs Tariff Act, 1975. Under the Customs Tariff Act, in respect of imported goods, all duties, taxes, cessessetc will be collected at the time of importation i.e. when the import declarations are filed before the customs authorities for the customs clearance purposes. Clarifications were provided

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Goods and Services Tax – GST – By: – Mr. M. GOVINDARAJAN – Dated:- 1-2-2019 – The green tea leaves plucked from the plants are not fit for the human consumption. It cannot be sold in the open market for human consumption. The raw tea leaves are withered by exposure in the shadow of the sun or by heating in trays until pliable. The tea leaves normally undergo the following standard procedures prior to procurement- Tea leaves are plucked from the tea plant. Thereafter the leaves are rolled by hand or machine in order to break the leaf cells and liberate the juices and enzymes. Finally the leaves are completely dried either by further exposure to the sun, over fires, or in a current of hot air. Then the leaves are fermented in baskets, glasses and in clothes. Thereafter the leaves are subjected to grading with sieves of various sizes. The leaves are finally roasted with charcoal for obtaining suitable flavor and color. Then the said tea is packed in the bulk packs. All the above processe

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651 – APPELLATE AUTHORITY FOR ADVANCE RULING MAHARASHTRA, the appellant company had been granted licence for carrying out business of warehousing under the Bombay Warehousing Act, 1959. The appellant constructed warehouses at various places including at Fursungi, Pune. M/s Unilever India Exports Limited produces tea of various qualities in bulk either from public tea auctions or directly from the manufacturers of tea in 50 Kg bags and stores them in the said warehouse. The said procurement was undertaken during season. Unilever undertook blending and packing of tea at the warehouse and exported to various overseas countries. The appellant was of the view that the tea, procured in bulk, either from public tea auctions or directly from manufacturers of tea is an agricultural produce as defined in Notification No. 12/2017-Central Tax (Rate), since the tea is not losing the essential characteristics of tea. Therefore the tea is exempted from GST. However the appellant intended to get advan

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gone change from the green tea leaves to the black tea. The client of the appellant stated that their main and the sole ingredients are black tea of various qualities, which are blended in the specific proportion as per the specific orders received from their respective customers before packing the same. The Appellate Authority inferred that the product being stored in the warehouse has got different name, character and uses from the green tea leaves which are cultivated in the tea gardens. The Appellate Authority inferred that there is no doubt that the processes or treatments in which are performed upon the green tea leaves amounts to manufacture as per definition under section 2(72) of Central Goods and Services Tax Act, 2017. The said fact is acknowledged by the appellant. The Appellate Authority also analyzed the definition of agricultural produce under clause 2(d) of the Notification No. 12/2017-Central Tax (Rate), dated 28.06.2017. The Appellate Authority listed out the followin

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agricultural produce. Thus the manufactured products do not fulfill the above prescribed criteria of the agricultural produce. The Appellate Authority held that the black tea cannot be considered as agricultural produce. The Appellate Authority rejected the contention of the appellant that the said processes carried out on the green tea leaves do have bearing on the taste and color of the tea does not alter the characteristics of the tea. If tea stored in appellant s warehouse is agricultural produce, the same should be covered under the Notification No. 12/2017-Central Tax- Rate. But the processes carried out by the client of the appellant, as submitted by the appellant, leaves no doubt in one s mind that they have lost the nature and characteristics of an agricultural produce in terms of definition of agricultural produce and are ready for secondary or tertiary market. The intention of the legislature has never been to exempt agricultural produce at every stage. Had it been the case

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GST – 88/07/2019 – Dated:- 1-2-2019 – Circular No. 88/07/2019-GST F. No. CBEC-20/16/04/2018 – GST Government of India Ministry of Finance Department of Revenue Central Board of Indirect Taxes and Customs GST Policy Wing *** New Delhi, Dated the 1st February, 2019 To, The Principal Chief Commissioners / The Principal Directors General / Chief Commissioners / Directors General (All) / Principal Commissioners / Commissioners of Central Tax (All) Madam/Sir, Subject: Reg. The CGST (Amendment) Act, 2018, SGST Amendment Acts of the respective States, IGST (Amendment) Act, 2018, UTGST (Amendment) Act, 2018 and the GST (Compensation to States) (Amendment) Act, 2018 (hereafter referred to as the GST Amendment Acts) have been brought in force with effect from 01.02.2019. 2. Consequent to the GST Amendment Acts, the following circulars issued earlier under the CGST Act, 2017 are hereby amended with effect from 01.02.2019, to the extent detailed in the succeeding paragraphs. 3. Circular No. 8/8/2

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ertible currency. However, export proceeds against specific exports may also be realized in rupees, provided it is through a freely convertible Vostro account of a non-resident bank situated in any country other than a member country of Asian Clearing Union (ACU) or Nepal or Bhutan . Accordingly, it is clarified that the acceptance of LUT for supplies of goods to countries outside India Nepal or Bhutan or SEZ developer or SEZ unit will be permissible irrespective of whether the payments are made in Indian currency or convertible foreign exchange as long as they are in accordance with the applicable RBI guidelines. It may also be noted that the supply of services to SEZ developer or SEZ unit under LUT will also be permissible on the same lines. The supply of services, however, to Nepal or Bhutan will be deemed to be export of services only if the payment for such services is received by the supplier in convertible foreign exchange. 3.2 Amended Para 2(k) Realization of export proceeds in

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export proceeds of services in INR, wherever allowed by the RBI. Accordingly, it is clarified that the acceptance of LUT for supplies of goods or services to countries outside India or SEZ developer or SEZ unit will be permissible irrespective of whether the payments are made in Indian currency or convertible foreign exchange as long as they are in accordance with the applicable RBI guidelines. 4 Circular No. 38/12/2018 dated 26.03.2018 This circular is revised in view of the amendment carried out in section 143 of the CGST Act, 2017 vide section 29 of the CGST (Amendment) Act, 2018 empowering the Commissioner to extend the period for return of inputs and capital goods from the job worker. Further on account of amendment carried out in section 9(4) of the CGST Act, 2017 vide section 4 of the CGST (Amendment) Act, 2018 done in relation to reverse charge, certain amendments to the Circular are required. Accordingly, the original and the amended relevant para of the circular are detailed

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tered principal may, without payment of tax, send inputs or capital goods to a job worker for job work and, if required, from there subsequently to another job worker and so on. Subsequently, on completion of the job work (by the last job worker), the principal shall either bring back the goods to his place of business or supply (including export) the same directly from the place of business/premises of the job worker within the time specified under section 143. 4.3 Original Para 3. It may be noted ………. Moreover, if the time frame of one year / three years for bringing back or further supplying the inputs / capital goods is not adhered to, the activity of sending the goods for job work shall be deemed to be a supply by the principal on the day when the said inputs / capital goods were sent out by him. Thus, essentially, sending goods for job work is not a supply as such, but it acquires the character of supply only when the inputs/capital goods sent for job work ar

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n the specified time period (under section 143) of being sent out. It may be noted that the responsibility for sending the goods for job work as well as bringing them back or supplying them has been cast on the principal. 4.5 Original Para 6.1 Doubts have been raised ………… It may be noted that the job worker is required to obtain registration only if his aggregate turnover, to be computed on all India basis, in a financial year exceeds the specified threshold limit (i.e. ₹ 20 lakhs or ₹ 10 lakhs in case of special category States except Jammu & Kashmir) in case both the principal and the job worker are located in the same State. ……..…However, exemption from registration has been granted in case the aggregate turnover of the inter-State supply of taxable services does not exceed ₹ 20 lakhs or ₹ 10 lakhs in case of special category States except Jammu & Kashmir in a financial year vide notification No. 10/2017 – I

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registration has been granted in case the aggregate turnover of the inter-State supply of taxable services does not exceed the specified threshold limit as specified in sub-section (1) of section 22 of the said Act, read with clause (iii) of the Explanation to the said section in a financial year vide notification No. 10/2017 – Integrated Tax dated 13.10.2017 as amended vide notification No 3/2019- Integrated Tax, dated 29.01.19. Therefore, it is clarified that a job worker is required to obtain registration only in cases where his aggregate turnover, to be computed on all India basis, in a financial year exceeds the threshold limit regardless of whether the principal and the job worker are located in the same State or in different States. 4.7 Original Para 9.4.(i.) (i) Supply of job work services: The job worker, …………….not been included in the price for such supply. Accordingly, it is clarified that the value of such moulds and dies, jigs and fixtur

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aised whether the value of moulds and dies, jigs and fixtures or tools which have been provided by the principal to the job worker and have been used by the latter for providing job work services would be included in the value of job work services. In this regard, attention is invited to section 15 of the CGST Act which lays down the principles for determining the value of any supply under GST. Importantly, clause (b) of sub-section (2) of section 15 of the CGST Act provides that any amount that the supplier is liable to pay in relation to the supply but which has been incurred by the recipient will form part of the valuation for that particular supply, provided it has not been included in the price for such supply. Accordingly, it is clarified that the value of such moulds and dies, jigs and fixtures or tools may not be included in the value of job work services provided its value has been factored in the price for the supply of such services by the job worker. 4.9 Original Para 9.6 T

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e specified time period, the principal would issue an invoice for the same and declare such supplies in his return for that particular month in which the time period of one year / three years has expired. The date of supply shall be the date on which such inputs or capital goods were initially sent to the job worker and interest for the intervening period shall also be payable on the tax. If such goods are returned by the job worker after the stipulated time period, the same would be treated as a supply by the job worker to the principal and the job worker would be liable to pay GST if he is liable for registration in accordance with the provisions contained in the CGST Act read with the rules made thereunder. Further, there is no requirement of either returning back or supplying the goods from the job worker s place of business/premises as far as moulds and dies, jigs and fixtures, or tools are concerned. 5 Circular No. 41/15/2018 dated 13.04.2018 This circular is revised in view of t

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MOV-08 and FORM GST MOV-09, annexed to the circular are revised as below: FORM GST MOV-08 (para 4) And if all taxes, interest, penalty, fine and other lawful charges demanded by the proper officer are duly paid within fourteen days of the date of detention being made in writing by the said proper officer, this obligation shall be void. FORM GST MOV-09 (para 10) You are hereby directed to make the payment forthwith/not later than fourteen days from the date of the issue of the order of detention in FORM GST MOV-06, failing which action under section 130 of the Central/State Goods and Services Tax Act /section 21 of the Union Territory Goods and Services Tax Act or section 20 of the Integrated Goods and Services Act shall be initiated 6. Circular No. 58/32/2018 dated 04.09.2018 This circular is revised in order to streamline the modes of recovery. Accordingly, the original and the amended relevant para of the circular are detailed hereunder. 6.1 Original Para 3. Currently, the functional

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lty shall apply in respect of all such amounts, which shall also be paid in FORM GST DRC-03. 7. Circular No. 69/43/2018 dated 26.10.2018 The circular is revised in view of the amendment carried out in section 29 of the CGST Act, 2017 vide section 14 of the CGST (Amendment) Act, 2018 allowing suspension of registration. Accordingly, the original and the amended relevant para of the circular are detailed hereunder. 7.1 Original Para 11. It is pertinent to mention here that section 29 of the CGST Act has been amended by the CGST (Amendment) Act, 2018 to provide for Suspension of registration. The intent of the said amendment is to ensure that a taxpayer is freed from the routine compliances, including filing returns, under GST Act during the pendency of the proceedings related to cancellation. Although the provisions of CGST (Amendment) Act, 2018 have not yet been brought into force, it will be prudent for the field formations may not to issue notices for non- filing of return for taxpaye

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GST – 04/01/2019 – Dated:- 1-2-2019 – Circular No. 04/01/2019-GST F. No. CBEC-20/16/04/2018 – GST Government of India Ministry of Finance Department of Revenue Central Board of Indirect Taxes and Customs GST Policy Wing **** New Delhi, Dated the 1st February, 2019 To, The Principal Chief Commissioners / The Principal Directors General / Chief Commissioners / Directors General (All) / Principal Commissioners / Commissioners of Central Tax (All) Madam/Sir, Subject: Reg. The provisions of the CGS

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GST – ORDER No. 02/2019-Central Tax – Dated:- 1-2-2019 – Government of India Ministry of Finance (Department of Revenue) [Central Board of Indirect Taxes and Customs] ORDER No. 02/2019-Central Tax New Delhi, the 1st February, 2019 S.O.634 (E). WHEREAS, sub-section (4) of section 52 of the Central Goods and Services Tax Act, 2017 (12 of 2017) (hereafter in this Order referred to as the said Act) provides that every operator who collects the amount specified in sub-section (1) shall furnish a statement, electronically, containing the details of outward supplies of goods or services or both effected through it, including the supplies of goods or services or both returned through it, and the amount collected under sub-section (1) during a mon

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GST – ORDER No. 01/2019-Central Tax – Dated:- 1-2-2019 – Government of India Ministry of Finance (Department of Revenue) [Central Board of Indirect Taxes and Customs] ORDER No. 01/2019-Central Tax New Delhi, the 1st February, 2019 S.O. 635 (E). WHEREAS, sub-section (1) of section 10 of the Central Goods and Services Tax Act, 2017 (12 of 2017) (hereafter in this Order referred to as the said Act) provides that- (i) a registered person engaged in the supply of services, other than supply of service referred to in clause (b) of paragraph 6 of Schedule II to the said Act, may opt for the scheme under the said sub-section; (ii) a person who opts for the said scheme may supply services (other than those referred to in clause (b) of paragraph 6

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of small businesses and because of that, certain difficulties have arisen in giving effect to the provisions of section 10; NOW, THEREFORE, in exercise of the powers conferred by section 172 of the Central Goods and Services Tax Act, 2017 and in supersession of the Central Goods and Services Tax (Removal of Difficulties) Order, 2017, No. 01/2017-Central Tax, dated the 13th October, 2017, published in the Gazette of India, Extraordinary, vide number S.O. 3330 (E), dated the 13th October, 2017, except as respects things done or omitted to be done before such supersession, the Central Government, on recommendations of the Council, hereby makes the following Order, namely: – 1. Short title. -This Order may be called the Central Goods and Servic

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GST – ORDER No. 01/2019- Union Territory Tax – Dated:- 1-2-2019 – Government of India Ministry of Finance (Department of Revenue) [Central Board of Indirect Taxes and Customs] ORDER No. 01/2019- Union Territory Tax New Delhi, the 1st February, 2019 S.O.636 (E). WHEREAS, section 21 of the Union Territory Goods and Services Tax Act, 2017 (14 of 2017) read with sub-section (1) of section 10 of the Central Goods and Services Tax Act, 2017 (12 of 2017) (hereafter in this Order referred to as the said Act) provides that- (i) a registered person engaged in the supply of services, other than supply of service referred to in clause (b) of paragraph 6 of Schedule II to the said Act, may opt for the scheme under the said sub-section; (ii) a person w

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of extending deposits, loans or advances, in so far as the consideration is represented by way of interest or discount, is resulting in their ineligibility for the aforesaid scheme, causing hardships to a lot of small businesses and because of that, certain difficulties have arisen in giving effect to the provisions of section 10 of the said Act; NOW, THEREFORE, in exercise of the powers conferred by section 26 of the Union Territory Goods and Services Tax Act, 2017 and in supersession of the Union Territory Goods and Services Tax (Removal of Difficulties) Order, 2017, No. 01/2017 – Union Territory Tax, dated the 13th October, 2017, published in the Gazette of India, Extraordinary, vide number S.O. 3329 (E), dated the 13th October, 2017, ex

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GST – ORDER No. 01/2019 – Dated:- 1-2-2019 – Government of India Ministry of Finance (Department of Revenue) [Central Board of Indirect Taxes and Customs] ORDER No. 01/2019-Central Tax New Delhi, the 1st February, 2019 S.O. 635 (E). WHEREAS, sub-section (1) of section 10 of the Central Goods and Services Tax Act, 2017 (12 of 2017) (hereafter in this Order referred to as the said Act) provides that- (i) a registered person engaged in the supply of services, other than supply of service referred to in clause (b) of paragraph 6 of Schedule II to the said Act, may opt for the scheme under the said sub-section; (ii) a person who opts for the said scheme may supply services (other than those referred to in clause (b) of paragraph 6 of Schedule

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inesses and because of that, certain difficulties have arisen in giving effect to the provisions of section 10; NOW, THEREFORE, in exercise of the powers conferred by section 172 of the Central Goods and Services Tax Act, 2017 and in supersession of the Central Goods and Services Tax (Removal of Difficulties) Order, 2017, No. 01/2017-Central Tax, dated the 13th October, 2017, published in the Gazette of India, Extraordinary, vide number S.O. 3330 (E), dated the 13th October, 2017, except as respects things done or omitted to be done before such supersession, the Central Government, on recommendations of the Council, hereby makes the following Order, namely: – 1. Short title. -This Order may be called the Central Goods and Services Tax (Remo

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GST – ORDER No. 02/2019 – Dated:- 1-2-2019 – Government of India Ministry of Finance (Department of Revenue) [Central Board of Indirect Taxes and Customs] ORDER No. 02/2019-Central Tax New Delhi, the 1st February, 2019 S.O.634 (E). WHEREAS, sub-section (4) of section 52 of the Central Goods and Services Tax Act, 2017 (12 of 2017) (hereafter in this Order referred to as the said Act) provides that every operator who collects the amount specified in sub-section (1) shall furnish a statement, electronically, containing the details of outward supplies of goods or services or both effected through it, including the supplies of goods or services or both returned through it, and the amount collected under sub-section (1) during a month, in such

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GST – ORDER No. 01/2019 – Dated:- 1-2-2019 – Government of India Ministry of Finance (Department of Revenue) [Central Board of Indirect Taxes and Customs] ORDER No. 01/2019- Union Territory Tax New Delhi, the 1st February, 2019 S.O.636 (E). WHEREAS, section 21 of the Union Territory Goods and Services Tax Act, 2017 (14 of 2017) read with sub-section (1) of section 10 of the Central Goods and Services Tax Act, 2017 (12 of 2017) (hereafter in this Order referred to as the said Act) provides that- (i) a registered person engaged in the supply of services, other than supply of service referred to in clause (b) of paragraph 6 of Schedule II to the said Act, may opt for the scheme under the said sub-section; (ii) a person who opts for the said

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, loans or advances, in so far as the consideration is represented by way of interest or discount, is resulting in their ineligibility for the aforesaid scheme, causing hardships to a lot of small businesses and because of that, certain difficulties have arisen in giving effect to the provisions of section 10 of the said Act; NOW, THEREFORE, in exercise of the powers conferred by section 26 of the Union Territory Goods and Services Tax Act, 2017 and in supersession of the Union Territory Goods and Services Tax (Removal of Difficulties) Order, 2017, No. 01/2017 – Union Territory Tax, dated the 13th October, 2017, published in the Gazette of India, Extraordinary, vide number S.O. 3329 (E), dated the 13th October, 2017, except as respects thin

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