Author: admin_gst

GST – States – CCST Ref. No. GST/17/2018 – Dated:- 30-1-2019 – File No.REV-35024/18/2018-CT I – REV Office of the Chief Commissioner of State Tax, Eedupugallu, Vijayawada. CCST Ref. No. GST/17/2018 Date :-30-01-2019. Sub: Goods and Services Tax, 2017 – Claims of GST Refunds -Disbursement of sanctioned amounts- Request of the CCST for issuing certain instructions to the Treasury – Reg. ********* As it had come to notice, that there are abnormal delays in the Treasury department to disburse the S

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

GST – Started By: – Haresh Raithatha – Dated:- 29-1-2019 Last Replied Date:- 30-1-2019 – Whether GST is applicable on any Penalty or Charges payable to Regional Transport Office by any entity? If yes then who is liable to pay GST on such Penalty or Fees? – Reply By CASusheel Gupta – The Reply = Services provided by government authority up to ₹ 5000/- is exempt,Above 5000/- falls in RCMCA Susheel Gupta9811004443 – Reply By KASTURI SETHI – The Reply = Also see Para no.5.2 and 6 of the follo

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

GST – Started By: – prodipto mondal – Dated:- 29-1-2019 – i am a tour and travel agent. mainly i booked air/train ticket..example if i booked train ticket then my gst number will be provided in IRCTC website or if i booked air ticket in makemytrip then gst number will be provided in makemytrip website… if i provide my gst number in IRCTC website for train ticket booking then IRCTC provide me ITC, in this case if i claim INPUT then in my invoice OUTPUT will be mandatory or only 18% GST for ser

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

GST – Profiteering – major manufacturers of Fast Moving Consumer Goods (FMCG) – the Respondent had not passed on the benefit of tax reduction in respect of the 109 products supplied by him during the

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

GST – Started By: – mohan sehgal – Dated:- 29-1-2019 Last Replied Date:- 30-1-2019 – An invoice has been raised by mentioning wrong GSTIN by clerical error and the goods despatched to the buyer;along with an E Way bill.(Wrong GSTIN has also been quoted on the eway bill)The goods have been received at the destination by the actual buyer the place of supply being the same.(The GSTR 1 for the period concerned has not been yet filed. How to rectify the mistake so that the actual buyer receives the

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

RAJESH ACCOUNTANT – GST – Started By: – rajesh subramanian – Dated:- 29-1-2019 – DEAR SIRWE ARE 100% EOU PVT LTD COMPANY, WE FROM COMPOSITION DEALER, WE ARE RECEIVING BILL FOR BOTH FABRICATION CHAREGE

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

A view: Why ‘Intermediary Service provided to recipient located outside India’ cannot fall under ‘Inter-State Supply’ and Why IGST is not leviable there against? And alternatively, why such provision treating it as ‘Inter-State Supply’ will be unconstitutional? – Goods and Services Tax – GST – By: – Amit Agrawal – Dated:- 29-1-2019 Last Replied Date:- 30-1-2019 – There is substantial controversy prevalent in trade & industry on whether intermediary services provided by Supplier located in India to Recipient located outside India (hereinafter referred as subject supply ) falls under Inter-state supply u/s 7 (5) (c) of IGST Act, 2017 or under Intra-State Supply u/s 8 (2) of IGST Act, 2017? And whether service provider is liable to pay IGST on said transaction or SGST & CGST? Genesis of the controversy involved: 1. Section 13 of IGST Act determines Place of Supply where location of supplier of services or the location of the recipient of services is outside India, while Section 12

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

bject services falls under Inter-state supply as defined under section 7 of IGST Act, 2017 (& thereby IGST is payable there against) or under Intra-State Supply as defined under section 8 of IGST Act (& thereby SGST & CGST is payable there against)? 4. One of the views prevalent is that due to the express words used at start of Section 8 (2) which defines intra-state supplies (i.e. Subject to the provisions of section 12, which in turn determines place of supply only when location of supplier and recipient is in India), nature of supply cannot be determined u/s 8 (2) if location of service provider or receiver is outside India. As per this view, subject services falls within inter-state supply as same got covered under residual entry of section 7 (5) (c). Altogether opposite view is also available which feels that despite the words used at start of Section 8 (2) (i.e. Subject to the provisions of section 12), subject supply indeed fall under intra-state supply due to above-

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

all under intra-state supply u/s 8 (2). And hence, this article only deals with the followings questions: If subject supply is not intra-state u/s 8 (2), question is, can it really fall under inter-state supply and can IGST be levied on such supply? Our Analysis: A. IGST Act, 2017 is extended to whole of India as per Section 2 of IGST Act, 2017 as amended. A1. Reading of only sub-section 5 (c) of section 7 of IGST Act, will be as follows: Supply of goods or services or both, in the taxable territory, not being an intra-State supply and not covered elsewhere in this section, shall be treated to be a supply of goods or services or both in the course of inter-State trade or commerce . A2. From reading of whole section 7, it is clear that sub-section (2) & (4) deals with import of goods / services into the territory of India and same are not relevant for subject supply under consideration here. Sub-section (1) & (3) as well as sub-section (5) (a) actually links determination inter-

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

ce tax is a value added tax. A4. I think that it would be almost uncontroversial to say that there is no difference between GST and VAT / Service Tax as far as above explained economic principals by Apex Court are concerned. Accordingly, unless and until there are any deeming fictions created under law, GST remain destination based consumption tax. A5. A cogent reading from above economic principles explained by Apex Court read with very minute but very relevant difference between sub-section 7 (5) (c) of as compared to sub-section (1) & (3) of Section 7 (i.e. missing specific reference to place of supply vis-a-vis location of supplier , though it indeed requires supply in the taxable territory) can only mean that in order to fall under residual entry of sub-section 5 (c), one of the conditions to be fulfilled is that supply of services / goods must be to a recipient located in India. As subject services are provided to recipient located outside India, same cannot be called inter-s

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

plitude to create deeming fiction/s under taxation matters and to levy tax thereon. B2. Even though Parliament has got wide amplitude to create deeming fiction/s under taxation matters, it is also well settled that restrictions imposed by Constitution of India are sacrosanct. And Parliament (& for that matter, even the GST Council) cannot go beyond those restrictions imposed by the Constitution. Question to be considered is whether above-said difference between treated as and treated to be is sufficient & material enough to treat them as deeming provisions and to make subject services as deemed taxable as inter-state supply and weather IGST is payable on the basis of such deeming fiction? And if yes, whether any such reading of sub-section 7 (5) (c) will make it unconstitutional? B3. In this regard, it is very important to note & understand implications of changes bought in the Constitution by way of The Constitution (One Hundred and First Amendment) Act, 2016. Some of thes

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

takes place in the course of inter-State trade or commerce. The term inter-state trade or commerce is commonly understood as trade or commerce between two states / UT. And same in common parlance is not understood as to also include international trade or commerce . B3.1.2 For levy of GST on supplies which takes place in the course of inter-State trade or commerce, Parliament has enacted IGST Act. And all such supplies are called as inter-state supply under various sub-sections of Section 7 by treating those supplies as / to be place in the course of inter-State trade or commerce. B3.1.3 And for levy of GST on supplies which does not takes place in the course of inter-State trade or commerce, Parliament has enacted CGST Act and every state (which includes Union Territory as per clause 26B of Article 366) has enacted respective SGST / UGST Act. These supplies are called as intra-state supplies under Section 8 of the IGST Act. B3.2 Article 269A. Levy and collection of goods and serv

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

r commerce. . B3.2.1 Due to explanation inserted in Article 269A, supply of goods / services in the course of import into the territory of India are deemed to be supply of goods / services in the course of inter-State trade or commerce. However, it is worth noting that for supply of goods / services in the course of export outside the territory of India, there is no such deeming fiction created in Article 269A or anywhere else in the Constitution to treat it as in the course of inter-State trade or commerce. In other words, Parliament (while amending the Constitution in 2016 to bring GST) was fully conscious of the fact that import of goods / services cannot be called as in the course of inter-State trade or commerce and hence, chosen to insert deeming fiction. But still, it has also consciously chosen not to create such deeming fiction for export of goods / services. As explained earlier, only Parliament has been given exclusive powers to levy GST on supplies in the course of inter-St

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

. B3.3 Amended Article 286 reads as under: 286. Restrictions as to imposition of tax on the sale or purchase of goods.- (1) No law of a State shall impose, or authorise the imposition of, a tax on the supply of goods or of services or both, where such supply takes place- (a) outside the State; or (b) in the course of the import of the goods or services or both into, or export of the goods or services or both out of, the territory of India (2) Parliament may by law formulate principles for determining when a supply of goods or of services or both in any of the ways mentioned in clause (1). B3.3.1 Article 286 restricts State from imposing tax where supply of goods / services take place outside the State or where supply of goods / services takes place in course of import or export. Parliament has also empowered under clause (2) to determine when a supply of goods or of services or both in any of the ways mentioned in clause (1). What is worth noting here that supply outside state and supp

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

ervices is outside India. In other words, wherever the place of supply of services is within India and within same State wherein supplier is located, State has concurrent power to levy SGST (along-with Centre s CGST) and Centre does not have exclusive powers to levy IGST (Article 246A read with Article 269A & Article 286, as explained above). B3.3.4 Subject supply under discussion here is not treated as export of services under section 2 (6) read with Section 13 (8) (b) of IGST Act. And hence, State has concurrent power (along-with Centre s power to levy CGST) to levy SGST on the subject supply as place of supply is within same state where supplier is located. And, IGST cannot be charged there-against. B.3.4 Furthermore, various entries of List I – Union List and List II – State List (i.e. entries before amendment of year 2016 as well as thereafter) clearly shows that there always was / still is material difference between supplies which are in the course of inter-State trade or co

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

plies when same are neither outside the state nor export. And, for this reason, Section 7 (5) (c), the residual entry, cannot be read into as to make subject supply as inter-state supply. C. Let s look at entire issue a fresh from point of view of reading of Section 7 (5) (a) & its implications: Let s take an example that management consultancy services are supplied by provider located in the State of Maharashtra to recipient located outside India and Place of supply is a foreign country u/s 13 (2). Only difficulty is that service provider is getting his consideration in Indian Rupees and not in convertible foreign exchange. Now, even though said supply is inter-state as per Section 7 (5) (a), supplier is not eligible to make zero-rated supply u/s 16 but is liable to pay IGST due to non-fulfillment of export of service conditions. But, due to provisions of Section 17 (2) of the IGST Act State of Maharashtra will not get any apportionment of taxes from Centre. This is despite the fa

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

ur Views on Subject Supply: We are of the view that subject supply (i.e. intermediary services are provided to recipient located outside India by provider located in India) cannot be treated as inter-state supply under Section 7 (5) (c) of IGST Act. Hence, no IGST is payable there against even if same does not fulfill condition of export of services. Any attempt to read Section 7 (5) (c) otherwise, will make the provision unconstitutional. If said supply also does not fall within the definition of intra-state supply under Section 8 (2) of IGST Act (as presumed for this article), then, same is not taxable at all under GST. However, to arrive at that conclusion definitively, question which needs to be reconsidered is whether subject transaction indeed does not fall under intra-state supply u/s 8 (2)? – Reply By Aneesh BU – The Reply = In para 4 you have emphasized on the term 'subject to' used in sec. 8(2) and stated that if location of supplier or receiver is outside India, then

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

Goods and Services Tax – GST – By: – Bimal jain – Dated:- 29-1-2019 – Comparative insight into the amended CGST and IGST Acts applicable w.e.f. 01.02.2019 The GST Council in its 32nd meeting held on January 10, 2019, gave approval that the changes made by CGST (Amendment) Act, 2018, IGST (Amendment) Act, 2018, UTGST (Amendment) Act, 2018 and GST (Compensation to States) Amendment Act, 2018 along with the corresponding changes in SGST Acts would be notified w.e.f. February 01, 2019. Earlier, the Hon ble President on August 29, 2018 has given its assent to these four crucial amendment bills of GST law, which got published in the official Gazette of India on August 30, 2018. Now, since the various Amendment Acts are going to be effective from first day of February, 2019, it is highly advisable to plunge into the changes and understand their implications on our business. For the ease of understanding, we are summarising herewith section-wise tabular presentation of amended CGST Act, 2017

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

es and Customs, the Revisional Authority, the Authority for Advance Ruling, the Appellate Authority for Advance Ruling, the Appellate Authority, and the Appellate Tribunal and the Authority referred to in sub-section (2) of section 171. Changes are made in pursuance of the change in name of CBEC to CBIC. Further, the National Anti-Profiteering Authority constituted under Section 171 of the CGST Act is also excluded from the definition of adjudicating authority . Section 2(17)(h) – Definition of Business business includes- (h) services provided by a race club by way of totalisator or a licence to book maker in such club; and business includes- (h) services provided by 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 This change ensures that all activities related to a race club are included in definition of business. Section 2(35) – Definition of Cost Accountant cost accountant means a cost acco

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

money and securities but includes activities relating to the use of money or its conversion by cash or by any other mode, from one form, currency or denomination, to another form, currency or denomination for which a separate consideration is charged; services means anything other than goods, money and securities but includes activities relating to the use of money or its conversion by cash or by any other mode, from one form, currency or denomination, to another form, currency or denomination for which a separate consideration is charged; Explanation. – For the removal of doubts, it is hereby clarified that the expression services includes facilitating or arranging transactions in securities; . This explanation provides clarity that although securities [s. 2(h) of Securities Contract Regulations Act, 1956] are excluded from the definition of goods and services in the CGST Act, but if some service charges or service fees or documentation fees or broking charges or such like fees or cha

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

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. (1) For the purposes of this Act, the expression supply includes- (a) all forms of supply of goods or services or both such as sale, transfer, barter, exchange, licence, rental, lease or disposal made or agreed to be made for a consideration by a person in the course or furtherance of business; (b) import of services for a consideration whether or not i

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

is to determine only whether the same is supply of goods or services. Hence, activities/ transactions listed in Schedule II (as supply of service or supply of goods) shall be taxed only when they constitute supply in accordance with provisions of Section 7(1)(a), (b) and (c) of the CGST Act. Amendments in definition of supply are made retrospectively applicable. Thus, there shall not be any past litigation on account of any transaction merely covered under Schedule II, but otherwise not a supply . What additionally could have been done: Inclusive definition of supply must be made concrete with no subjectivity; Clarity must be provided on concept of composite and mixed supply as to manner of determining principal supply and dominant intention; Activities relating to repairs, maintenance, installation etc. of movable goods must be included as supply of services in Schedule II. Section 9(4) – Reverse charge in case of procurement from unregistered persons The central tax in respect of th

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

arge 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 is the person liable for paying the tax in relation to such supply of goods or services or both . Earlier Section 9(4) of the CGST Act has been omitted and instead, an enabling power is granted for the Govt. to notify a class of registered persons who would be liable to pay tax on reverse charge basis in case of receipt of specified categories of goods or services or both (as against taxable goods or services or both) from an unregistered supplier. The details of such specified persons and specified goods/services are to be notified in future. What additionally could have been done: Operation of Section 9(4) in its present form, is not conducive as the registered recipient requires to raise self-invoice, capturing individual HSN/ SAC codes for procurement of such specified goods or services, which is operationally not easing business and sho

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

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-State outward supplies of goods; (d) he is not engaged in making any supply of goods through an electronic commerce operator who is required to collect tax at source under section 52; and (e) he is not a manufacturer of such goods as may be notified by the Government on the recommendations of the Council: Provided that where more than one registered persons are having the same Permanent Account Number (issued under the Income-tax Act, 1961), the registered person shall not be eligible to opt for the scheme under sub-section (1) unless all such registered per

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

gregate turnover in the preceding financial year did not exceed fifty lakh rupees, may opt to pay, in lieu of the tax payable by him under sub-section (1) of section 9, an amount of tax calculated at such rate as may be prescribed, but not exceeding,- one per cent of the turnover in State or turnover in Union territory in case of a manufacturer, 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 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 and fifty lakh crore rupees, as may be recommended by the Council. Provided further that a person who opts to pay tax under clause (a) or clause (b) or clau

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

er is higher [Presently, registered persons engaged in the supply of services (other than restaurant services) are not eligible for the composition scheme] The amendment also allows supply of services to the extent of above specified limits, apart from services referred in Para 6(b) of Schedule II i.e. restaurant services. This change seems to be inserted in view of clause (b) of Section 10. Clause (b) mentions about composite rate of tax on restaurant service providers. It clarifies that for clause (b), this limit shall apply for services supplied other than restaurant services. What additionally could have been done: It should be clarified that this amount of 10% of turnover in preceding financial year or INR 5 Lakhs, whichever is higher, should only be the taxable value of services – Order No. 01/2017 dated 13.10.2017 already clarifies that person supplying exempt services along with goods or restaurant services are not ineligible for composition levy; Clarification is required on n

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

voice with respect to the supply; or 12 (2) The time of supply of goods shall be the earlier of the following dates, namely: – (a) 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 This amendment seeks to correct a drafting error and thus includes issuance of invoice/other documents contained in other sub-sections of Section 31 like continuous supply of goods, etc. What additionally could have been done: Clarity may also be provided in respect of determining time of supply of debit notes issued for increase in taxable value and/or tax amount of supply of goods as the same is issued under Section 34 of the CGST Act. Section 13 – Time of supply of services (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)

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

ded in respect of determining time of supply of debit notes issued for increase in taxable value and/or tax amount of supply of services as the same is issued under Section 34 of the CGST Act. Section 16(2)(b) – Conditions for availing Input Tax Credit 16(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 t

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

he requirement of receiving services for availing ITC, it is stated that where the services are provided by the supplier to any person on the direction of and on account of registered person it shall be deemed that such registered person has received the services. Presently this deeming fiction is applicable only in case of bill-to-ship-to supply of goods. The same has been extended to services as well. Section 16(2)(c) – Conditions for availing Input Tax Credit 16(2) …………………………………. (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 tax credit admissible in respect of the said supply; and 16(2) …………………………………… (c) Subject to the provisions of section 41 or section 43A, the tax c

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

s of this sub-section, the expression value of exempt supply shall not include the value of activities or transactions specified in Schedule III, except those specified in paragraph 5 of the said Schedule. It is clarified by way of explanation that no reversal of common ITC shall be required 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 for the purpose of reversal. Section 17(5)(a) – Blocked credit on motor vehicles (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 passengers; or (C) imparting train

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

b) 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) where received by a taxable person engaged- (I) in the manufacture of such motor vehicles, vessels or aircraft; or (II) in the supply of general insurance services in respect of such motor vehicles, vessels or aircraft insured by him; Now, ITC is restricted only to the extent of motor vehicles for transportation of persons having approved capacity of not more than 13 persons (including the driver) unless used for specified purposes; Reference of other conveyances while disallowing credit on motor vehicles has been omitted. This amendment makes it clear that ITC would now be available in respect

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

here an inward supply of goods or services or both of a particular category is used by a registered person for making an outward taxable supply of the same category of goods or services or both or as an element of a taxable composite or mixed supply; (ii) membership of a club, health and fitness centre; (iii) rent-a-cab, life insurance and health insurance except where- (A) the Government notifies the services which are obligatory for an employer to provide to its employees under any law for the time being in force; or (B) such inward supply of goods or services or both of a particular category is used by a registered person for making an outward taxable supply of the same category of goods 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; (b) the following supply of goods or services or both- (i) food and beverages, outdoor catering, beauty treatment, health service

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

e. ITC in respect of food and beverages, health services, renting or hiring of motor vehicles, vessels and aircraft, travel benefits to employees etc., can be availed where the provision of such goods or services is obligatory for an employer to provide to its employees under any law for time being in force. Further ITC on renting or hiring of motor vehicles, vessels or aircraft is allowed when they are used for purposes specified in clause (a) or (aa). What additionally could have been done: Section 17(5) of the CGST Act must be pruned down further. ITC in respect of construction of factory, offices must be allowed as the same are foundation of any business for making outward supply of goods or services and always required in the course or furtherance of business; Word free samples must be deleted from clause (h) of Section 17(5) as distributing free samples is an inevitable practice of the trade to induce clients to judge quality and buy the product of the company; It may be clarifie

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

the Constitution and entries 51 and 54 of List II of the said Schedule. This amendment excludes the amount of tax levied under entry 92A of List I from the value of turnover for the purposes of distribution of credit by ISD. The same was inadvertently left out from clause (c) of Explanation to Section 20. Entry 92A of List I covers taxes on the sale or purchase of goods other than newspapers, where such sale or purchase takes place in the course of inter-State trade or commerce. Section 22(1) second proviso – Persons liable for registration 22 (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 aggr

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

it of registration in special category states from ten lakh rupees to maximum twenty lakh rupees Section 22 Explanation (iii) – Persons liable for registration Explanation (iii) to section 22 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. Explanation (iii) to section 22 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 and States of Arunachal Pradesh, Assam, Himachal Pradesh, Meghalaya, Sikkim and Uttarakhand. The threshold turnover for registration in special category States of Arunachal Pradesh, Assam, Himachal Pradesh, Meghalaya, Sikkim and Uttarakhand is increased from ten lakh rupees to twenty lakh rupees. Section 24 – Compulsory registration in certain cases (x) every electronic commerce operator. (x) every electronic co

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

State or Union territory where the nearest point of the appropriate baseline is located. 25 (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. Provided further that a person having a unit, as defined in the Special Economic Zones Act, 2005, in a Special Economic Zone or being a Special Economic Zone developer shall have to apply for a separate registration, as distinct from his place of business located outside the Special Economic Zone in the same State or Union territory. Explanation. – Every person who makes a supply from the territorial waters of India shall obtain

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

tion for each such business vertical place of business, subject to such conditions as may be prescribed. Proviso is substituted to allow persons having multiple places of business in a State or Union territory to obtain separate registrations for each such place of business, if they wish so. Thus, the requirement of having multiple business vertical for obtaining separate registration is dispensed with. Section 29(1) – Cancellation or Suspension of Registration 29 (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) .. (b) .. (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. 29 (1) The proper officer may, either on his own motion or on an

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

– Debit and Credit Notes 34 (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 person, who has supplied such goods or services or both, may issue to the recipient a credit note containing such particulars as may be prescribed. (2) … (3) 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 be less than the taxable value or tax payable 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. 34(1) Where a tax invoice has one or more tax invoices

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

ntaining such particulars as may be prescribed. The amendment seeks to permit a registered person to issue consolidated credit / debit notes as prescribed under Section 34 of the CGST Act in respect of multiple invoices issued in a Financial Year without linking the same to individual invoices. However corresponding changes in Rule 53 of the CGST Rules shall also be required which prescribes corresponding invoice number and date of invoice as one of the mandatory particulars on debit and credit notes. Further, suitable amendments in return format is also required. Section 35(5) – Accounts and other records 35 (5) Every registered person whose turnover during a financial year exceeds the prescribed limit shall get his accounts audited by a chartered accountant or a cost accountant and shall submit a copy of the audited annual accounts, the reconciliation statement under sub-section (2) of section 44 and such other documents in such form and manner as may be prescribed. 35 (5) Every regi

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

stributor or a non-resident taxable person or a person paying tax under the provisions of section 10 or section 51 or section 52 shall, for every calendar month or part thereof, furnish, in such form and manner as may be prescribed, a return, electronically, of inward and outward supplies of goods or services or both, input tax credit availed, tax payable, tax paid and such other particulars as may be prescribed, on or before the twentieth day of the month succeeding such calendar month or part thereof. 39 (1) Every registered person, other than an Input Service Distributor or a non-resident taxable person or a person paying tax under the provisions of section 10 or section 51 or section 52 shall, for every calendar month or part thereof, furnish, in such form and manner as may be prescribed in such form, manner and within such time as may be prescribed, a return, electronically, of inward and outward supplies of goods or services or both, input tax credit availed, tax payable, tax pai

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

ction (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. 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. It seeks to amend Section 39(7) of the CGST Act relating to furnishing of returns , so as to provide for prescribing the procedure for monthly payment of taxes even for quarterly filing of returns. Section 39(9)- Furnishing of returns 39 (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

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

ment 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 in such form and manner as may be prescribed, 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 financial year the end of the financial year to which such details pertain, or the actual date of furnishing of relevant annual return, whichever is earlier. Rectification of errors in returns is made subject to the form & manner to be prescribed. Section 43A – Procedure for furnishing return and availing input tax credit – 43 A: Procedure for furnishing return and availing input tax credit (1) Notwithstanding anything contained in sub-section (2) of section 16, section 37 or s

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

mount 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-section (3) or sub-section (4) but return thereof has not been furnished. (7) For the purposes of sub-section (6), the recovery shall be made in such manner as may be prescribed and such procedure may provide for non-recovery of an amount of tax or input tax credit wrongly availed not exceeding one thousand rupees. (8) The procedure, safeguards and threshold of the tax amount in relation to outward supplies, the details of which can be furnished under sub-section (3) by a registered person, – (i) within six months of taking registration; (ii) who ha

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

ds 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, and to perform such other functions in such manner as may be prescribed. This amendment allows the GST practitioner to perform other functions such as, filing refund claim, filing application for cancellation of registration etc., apart from furnishing the details of outward and inward supplies and various returns on behalf of a registered person. Sec 49 (2) – Payment of Tax 49 (2) The input tax credit as self-assessed in the return of a registered person shall be credited to his electronic credit ledger, in accordance with section 41, to be maintained in such manner as may be prescribed. 49 (2) The input tax credit as self-assessed in the return of a registered person shall be credited to his electronic credit ledger, in accordance with section 41 section 41 or section 43A, to be maint

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

f the input tax credit on account of central tax is not available for payment of integrated tax; ; (d) the Union territory tax shall first be utilized towards payment of Union territory tax and the amount remaining, if any, may be utilized towards payment of integrated tax; Provided that the input tax credit on account of Union territory 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. Clauses (c) and (d) to Section 49(5) are amended to provide that the credit of SGST/ UTGST can be utilized for payment of IGST only when the balance of the input tax credit on account of CGST is not available for payment of IGST. Section 49A – 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 in

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

utilisation of the input tax credit on account of integrated tax, central tax, State tax or Union territory tax, as the case may be, towards payment of any such tax. This Section provides an enabling power for the Government to prescribe any specific order of utilization of ITC for payment of taxes. This provision is subject to clause (e) and (f) of Section 49(5) i.e. CGST and SGST/UTGST cannot be cross utilized. Section 52(9) – Collection of tax at source 52 (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. (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 section 37 or section 39, the discrepancy shall be communicated to b

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

, to provide that the principle of unjust enrichment will apply in case of a refund claim arising out of supplies of goods or services or both made to a SEZ developer or unit. Section 54 Explanation (2)(c) – Relevant date for filing refunds in case of export of services (c) in the case of services exported out of India where a refund of tax paid is available in respect of services themselves or, as the case may be, the inputs or input services used in such services, the date of- (i) receipt of payment in convertible foreign exchange, where the supply of services had been completed prior to the receipt of such payment; or (ii) …………. (c) in the case of services exported out of India where a refund of tax paid is available in respect of services themselves or, as the case may be, the inputs or input services used in such services, the date of- (i) receipt of payment in convertible foreign exchange or in Indian rupees wherever permitted by the Reserve Bank of In

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

ised input tax credit under clause (ii) of first proviso to sub-section (3), the end of the financial year due date for furnishing of return under section 39 for the period in which such claim for refund arises. This seeks to prescribe that the relevant date in the case of refund of unutilised ITC arising out of inverted duty structure, shall be the due date for furnishing of return under section 39 for the period in which such claim for refund arises. For all other cases of unutilized ITC, relevant date shall be the end of any tax period as mentioned in Section 54(3) of the CGST Act. Section 79(4)- Recovery of tax 79 (4) Where the amount recovered under sub-section (3) is less than the amount due to the Central Government and State Government, the amount to be credited to the account of the respective Governments shall be in proportion to the amount due to each such Government. 79 (4) Where the amount recovered under sub-section (3) is less than the amount due to the Central Governmen

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

nterest, fine, fee and penalty arising from the impugned order, as is admitted by him; and (b) a sum equal to ten per cent. of the remaining amount of tax in dispute arising from the said order, in relation to which the appeal has been filed. 107 (6) 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 ten per cent. of the remaining amount of tax in dispute arising from the said order subject to a maximum of twenty-five crore rupees, in relation to which the appeal has been filed. This amendment put a ceiling on the limit of the amount to be deposited before filing an appeal to the appellate authority u/s 107 (6) which is 10% of the disputed tax amount subject to maximum limit of INR 25 crores. Further, the maximum amount to be deposited to file appeal from the appellate authority [u/s 112(8)] to appellate

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

ng from the said order, in relation to which the appeal has been filed. 112 (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 subject to a maximum of twenty-five crore rupees, in relation to which the appeal has been filed. Section 129(6) – Detention, seizure and release of goods and conveyances in transit 129 (6) Where the person transporting any goods, or the owner of the goods fails to pay the amount of tax and penalty as provided in sub-section (1) within seven days of such detention or seizure, further proceedings shall be initiated in accordance with the provisions of section 130: Provided that where the detained or seized goods are perisha

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

rporated which allows releasing of goods without levying penalty once the proof of payment of appropriate tax is shown or a mere technical breach is shown; E-Way Bill compliance must be made little easy for small taxpayers upto specified turnover by prescribing simple form with lesser details. Alternatively, threshold of consignment value exceeding INR 50,000/- requiring generating of E-Way Bill may be increased to INR 2 Lakh per consignment basis for small taxpayers. Section 140(1) – Transitional arrangement of Input Tax Credit (1) A registered person, other than a person opting to pay tax under section 10, shall be entitled to take, in his electronic credit ledger, the amount of CENVAT credit carried forward in the return relating to the period ending with the day immediately preceding the appointed day, furnished by him under the existing law in such manner as may be prescribed…. ……Explanation 1.- For the purposes of sub-sections (3), (4) and (6), the expression

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

, the expression eligible duties means- (i)… (ii) … (iii)… (iv) the additional duty of excise leviable under section 3 of the Additional Duties of Excise (Textile and Textile Articles) Act, 1978; (v)… …. Explanation 2.-For the purposes of sub-sections (1) and (5), the expression eligible duties and taxes means- (i)… (ii) … (iii)… (iv) the additional duty of excise leviable under section 3 of the Additional Duties of Excise (Textile and Textile Articles) Act, 1978; (v) … 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. Retrospective application w.e.f. 01.07.2017 This clarifies that only transitional credit of eligible duties can be carried forward in the return

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

f tax, to a job worker for job work and from there subsequently send to another job worker and likewise, and shall, – (a) bring back 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, to any of his place of business, without payment of tax; (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

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

he 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. Provided further that the period of one year and three years may, on sufficient cause being shown, be extended by the Commissioner for a further period not exceeding one year and two years respectively. In terms of Section 143 of the CGST Act, a registered person (principal) is allowed to send inputs or capital goods to a job worker for job work without payment of tax subject to the conditions inter-alia, that the inputs

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

ansactions to be treated as supply of goods or supply of services Change in heading Change in heading retrospectively w.e.f. 01.07.2017 Schedule III – Activities or transactions which shall be treated neither as supply of goods nor supply of services 6. Actionable claims, other than lottery, betting and gambling. Explanation. – For the purposes of paragraph 2, the term court includes District Court, High Court and Supreme Court. 6. Actionable claims, other than lottery, betting and gambling. 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. Explanation. 1 – For the purposes

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

e territory or vice versa should be included in Schedule III so that the same does not qualify as supply of services liable to GST, like centralized functions of accounting, legal, HR etc., carried out by HO; Duty credit scrips viz. MEIS/ SEIS, issued on export of goods/ services are presently treated as exempted goods and therefore are subject to reversal of credit provisions. As an encouragement to exporters, these Duty credit scrips should be included here as neither supply of goods nor services. Synopsis of the IGST Amendment Act, 2018 Provisions as per pre-amendment IGST Act Provisions of amended IGST Act w.e.f. 01.02.2019 Effect of amendment along with analysis as to comparison Section 2(6) – Definition of Export of services 2 (6) export of services means the supply of any service when, – (i) the supplier of service is located in India; (ii) the recipient of service is located outside India; (iii) the place of supply of service is outside India; (iv) the payment for such service

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

ernmental authority 2 (16) non-taxable online recipient means any Government, local authority, governmental authority, an individual or any other person not registered and receiving online information and database access or retrieval services in relation to any purpose other than commerce, industry or any other business or profession, located in taxable territory. 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;. 2 (16) non-taxable online recipient means any Government, local authority, governmental authority, an individual or any other person not registered and receiving online information and database access or retrieval services in rela

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

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. (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. (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 is the person liable for paying the tax in relation to such

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

itory and any other establishment outside that State or Union territory; or (iii) an establishment in a State or Union territory and any other establishment being a business vertical registered within that State or Union territory, then such establishments shall be treated as establishments of distinct persons. Explanation 1. – For the purposes of this Act, where a person has, – (i) an establishment in India and any other establishment outside India; (ii) an establishment in a State or Union territory and any other establishment outside that State or Union territory; or (iii) an establishment in a State or Union territory and any other establishment being a business vertical registered within that State or Union territory, then such establishments shall be treated as establishments of distinct persons. Amendment is made to align with the CGST Amendment Act, 2018 which allows more than registration in a state or union territory by removing the requirement of having multiple business ver

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

m a place in India to a place outside India by a transporter located in India would not be chargeable to GST, as place of supply will be outside India. Section 13(3) – Place of supply of performance-based services 13 (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 provide the services: 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 b

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

ired for such repairs or treatment or process. Amendment is made to not tax job work of any treatment or process done on goods temporarily imported into India (e.g., gold, diamonds) which are then exported. This is a taxpayer-friendly amendment which would encourage skill development in our country. Section 17 (2A) – Apportionment of tax and settlement of funds (2A). The amount not apportioned under sub-section (1) and sub-section (2) may, for the time being, on the recommendations of the Council, be apportioned at the rate of fifty per cent. to the Central Government and fifty per cent. to the State Governments or the Union territories, as the case may be, on ad hoc basis and shall be adjusted against the amount apportioned under the said sub-sections. This amendment provides that the amount of IGST which does not get apportioned under clauses (a) to (f) for the time being shall be apportioned to the Central Government and State Government/Union Territories @ 50% each on the recommen

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

GST – Input Tax Credit (ITC) on vehicles – Whether they can utilize/ refund the ITC which is readily available in GST Portal, for the vehicles purchased by them for the purpose of their core business activity? – Held No. – TMI Updates – Highlights

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

GST – 1/2019 – Goods and Services Tax Compensation – Dated:- 29-1-2019 – Government of India Ministry of Finance (Department of Revenue) Notification No. 1/2019 – Goods and Services Tax Compensation New Delhi, the 29th January, 2019 G.S.R. 73 (E). – In exercise of the powers conferred by sub-section (2) of section 1 of the Goods and Services Tax (Compensation to States) Amendment Act, 2018 (34 of 2018), the Central Government hereby appoints the 1st day of February, 2019 as the date on which th

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

GST – 02/2019 – Dated:- 29-1-2019 – Government of India Ministry of Finance (Department of Revenue) [Central Board of Indirect Taxes and Customs] Notification No. 02/2019-Central Tax New Delhi, the 29th January, 2019 G.S.R. 62 (E).- In exercise of the powers conferred by sub-section (2) of section 1 of the Central Goods and Services Tax (Amendment) Act, 2018 (31 of 2018), the Central Government hereby appoints the 1st day of February, 2019, as the date on which the provisions of the Central Goo

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

GST – 01/2019 – Union Territory Tax (Rate) – Dated:- 29-1-2019 – Government of India Ministry of Finance (Department of Revenue) [Central Board of Indirect Taxes and Customs] Notification No. 01/2019 – Union Territory Tax (Rate) New Delhi, the 29th January, 2019 G.S.R. 71 (E).- In exercise of the powers conferred by sub-section (1) of section 8 of the Union Territory Goods and Services Tax Act, 2017 (14 of 2017), the Central Government, on being satisfied that it is necessary in the public interest so to do, on the recommendations of the Council, hereby rescinds the notification of the Government of India in the Ministry of Finance (Department of Revenue) No. 8/2017- Union Territory Tax (Rate), dated the 28th June, 2017, published in the G

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

GST – 01/2019 – Union Territory Tax – Dated:- 29-1-2019 – Government of India Ministry of Finance (Department of Revenue) Notification No. 1/2019 – Union Territory Tax New Delhi, the 29th January, 2019 G.S.R. 74 (E). – In exercise of the powers conferred by sub-section (2) of section 1 of the Union Territory Goods and Services Tax (Amendment) Act, 2018 (33 of 2018), the Central Government hereby appoints the 1st day of February, 2019 as the date on which the provisions of the Union Territory Go

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

GST – 04/2019 – Dated:- 29-1-2019 – Government of India Ministry of Finance (Department of Revenue) [Central Board of Indirect Taxes and Customs] Notification No. 04/2019-Central Tax New Delhi, the 29th January, 2019 G.S.R 64 (E).- In exercise of the powers under section 3 read with section 5 of the Central Goods and Services Tax Act, 2017 (12 of 2017) and section 3 of the Integrated Goods and Services Tax Act, 2017 (13 of 2017), the Central Board of Indirect Taxes and Customs, hereby makes the following further amendments in the notification of the Government of India in the Ministry of Finance (Department of Revenue) No.2/2017- Central Tax, dated the 19th June, 2017, published in the Gazette of India, Extraordinary, Part II, Section 3, S

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

GST – 01/2019 – Integrated Tax (Rate) – Dated:- 29-1-2019 – Government of India Ministry of Finance (Department of Revenue) [Central Board of Indirect Taxes and Customs] Notification No. 01/2019 – Integrated Tax (Rate) New Delhi, the 29th January, 2019 G.S.R. 72 (E).- In exercise of the powers conferred by sub-section (1) of section 6 of the Integrated Goods and Services Tax Act, 2017 (13 of 2017), the Central Government, on being satisfied that it is necessary in the public interest so to do, on the recommendations of the Council, hereby rescinds the notification of the Government of India in the Ministry of Finance (Department of Revenue) No. 32/2017-Integrated Tax (Rate), dated the 13th October, 2017, published in the Gazette of India,

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

GST – 05/2019 – Dated:- 29-1-2019 – Government of India Ministry of Finance (Department of Revenue) [Central Board of Indirect Taxes and Customs] Notification No. 05/2019-Central Tax New Delhi, the 29th January, 2019 G.S.R. 65 (E).- In exercise of the powers conferred by sub-section (1) of section 10 of the Central Goods and Services Tax Act, 2017 (12 of 2017), the Central Government, on the recommendations of the Council, hereby makes the following further amendments in the notification of the Government of India in the Ministry of Finance (Department of Revenue) No.8/2017 – Central Tax, dated the 27th June, 2017, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R. 648 (E), dated the 2

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

GST – 01/2019 – Integrated Tax – Dated:- 29-1-2019 – Government of India Ministry of Finance (Department of Revenue) [Central Board of Indirect Taxes and Customs] Notification No. 01/2019 – Integrated Tax New Delhi, the 29th January, 2019 G.S.R. 67 (E).- In exercise of the powers conferred by sub-section (2) of section 1 of the Integrated Goods and Services Tax (Amendment) Act, 2018 (32 of 2018), the Central Government hereby appoints the 1st day of February, 2019 as the date on which the provi

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

GST – 06/2019 – Dated:- 29-1-2019 – Government of India Ministry of Finance (Department of Revenue) [Central Board of Indirect Taxes and Customs] Notification No. 06/2019 – Central Tax New Delhi, the 29th January, 2019 G.S.R. 66 (E).- In exercise of the powers conferred by sub-section (2) of section 23 of the Central Goods and Services Tax Act, 2017 (12 of 2017), the Central Government, on the recommendations of the Council, hereby makes the following amendments in the notification of the Government of India in the Ministry of Finance (Department of Revenue) No. 65/2017-Central Tax, dated the 15th November, 2017, published in the Gazette of India, Extraordinary, vide number G.S.R. 1421 (E), dated the 15th November, 2017, namely: – In the s

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

GST – 02/2019 – Integrated Tax – Dated:- 29-1-2019 – Government of India Ministry of Finance (Department of Revenue) [Central Board of Indirect Taxes and Customs] Notification No. 02/2019 – Integrated Tax New Delhi, the 29th January, 2019 G.S.R. 68 (E).- In exercise of the powers conferred by section 20 of the Integrated Goods and Services Tax Act, 2017 (13 of 2017) read with sub-section (2) of section 23 of the Central Goods and Services Tax Act, 2017 (12 of 2017), the Central Government, on t

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

GST – 03/2019 – Integrated Tax – Dated:- 29-1-2019 – Government of India Ministry of Finance (Department of Revenue) [Central Board of Indirect Taxes and Customs] Notification No. 03/2019 – Integrated Tax New Delhi, the 29th January, 2019 G.S.R. 69 (E).- In exercise of the powers conferred by section 20 of the Integrated Goods and Services Tax Act, 2017 (13 of 2017) read with sub-section (2) of section 23 of the Central Goods and Services Tax Act, 2017 (12 of 2017), the Central Government, on the recommendations of the Council, hereby makes the following amendments in the notification of the Government of India in the Ministry of Finance (Department of Revenue) No. 10/2017-Integrated Tax, dated the 13th October, 2017, published in the Gaze

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

GST – 01/2019 – Dated:- 29-1-2019 – Government of India Ministry of Finance (Department of Revenue) [Central Board of Indirect Taxes and Customs] Notification No. 01/2019-Central Tax (Rate) New Delhi, the 29th January, 2019 G.S.R. 70 (E).- In exercise of the powers conferred by sub-section (1) of section 11 of the Central Goods and Services Tax Act, 2017 (12 of 2017), the Central Government, on being satisfied that it is necessary in the public interest so to do, on the recommendations of the C

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

GST – 03/2019 – Dated:- 29-1-2019 – Government of India Ministry of Finance (Department of Revenue) [Central Board of Indirect Taxes and Customs] Notification No. 03/2019-Central Tax New Delhi, the 29th January, 2019 G.S.R. 63 (E). – In exercise of the powers conferred by section 164 of the Central Goods and Services Tax Act, 2017 (12 of 2017), the Central Government hereby makes the following rules further to amend the Central Goods and Services Tax Rules, 2017, namely:- 1. (1) These rules may be called the Central Goods and Services Tax (Amendment) Rules, 2019. (2) Save as otherwise provided in these rules, they shall come into force on the first day of February, 2019. 2. In the Central Goods and Services Tax Rules, 2017 (hereinafter referred to as the said rules), in Chapter-II, in the heading, for the words Composition Rules , the words, Composition Levy shall be substituted. 3. In the said rules, in rule 7, in the Table, against serial number (3), in column (3), for the word good

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

rately registered places of business of such person shall pay tax under the Act on supply of goods or services or both made to another registered place of business of such person and issue a tax invoice or a bill of supply, as the case may be, for such supply. Explanation. – For the purposes of clause (b), it is hereby clarified that where any place of business of a registered person that has been granted a separate registration becomes ineligible to pay tax under section 10, all other registered places of business of the said person shall become ineligible to pay tax under the said section. (2) A registered person opting to obtain separate registration for a place of business shall submit a separate application in FORM GST REG-01 in respect of such place of business. (3) The provisions of rule 9 and rule 10 relating to the verification and the grant of registration shall, mutatis mutandis, apply to an application submitted under this rule . 6. In the said rules, after rule 21, the fol

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

all not be required to furnish any return under section 39. (4) The suspension of registration under sub-rule (1) or sub-rule (2) shall be deemed to be revoked upon completion of the proceedings by the proper officer under rule 22 and such revocation shall be effective from the date on which the suspension had come into effect. . 7. In the said rules, after rule 41, the following rule shall be inserted, namely:- Rule 41A. Transfer of credit on obtaining separate registration for multiple places of business within a State or Union territory.- (1) A registered person who has obtained separate registration for multiple places of business in accordance with the provisions of rule 11 and who intends to transfer, either wholly or partly, the unutilised input tax credit lying in his electronic credit ledger to any or all of the newly registered place of business, shall furnish within a period of thirty days from obtaining such separate registrations, the details in FORM GST ITC-02A electronic

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

,- (a) in sub-rule (1), in clause (g), in the Explanation, after the word and figures entry 84 , the words, figures and letter and entry 92A shall be inserted. (b) in sub-rule (2), in the Explanation, clause (a) shall be omitted. 10. In the said rules, in rule 53,- (a) in sub-rule (1), after the words and figures section 31 , the words and figures and credit or debit notes referred to in section 34 shall be omitted; (b) in sub-rule (1) clause (c) shall be omitted; (c) in sub-rule (1) clause (i) shall be omitted; (d) after sub-rule (1), the following sub-rule shall be inserted, namely:- (1A) A credit or debit note referred to in section 34 shall contain the following particulars, namely:- (a) name, address and Goods and Services Tax Identification Number of the supplier; (b) nature of the document; (c) a consecutive serial number not exceeding sixteen characters, in one or multiple series, containing alphabets or numerals or special characters-hyphen or dash and slash symbolised as – an

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

sub-rule (1), in clause (a), for the words Central Board of Excise the words Central Board of Indirect Taxes shall be substituted; (b) in sub-rule (3), in the second proviso, for the words eighteen months , the words thirty months shall be substituted; (c) for sub-rule (8), the following sub-rule shall be substituted, namely:- (8) A goods and services tax practitioner can undertake any or all of the following activities on behalf of a registered person, if so authorised by him to- (a) furnish the details of outward and inward supplies; (b) furnish monthly, quarterly, annual or final return; (c) make deposit for credit into the electronic cash ledger; (d) file a claim for refund; (e) file an application for amendment or cancellation of registration; (f) furnish information for generation of e-way bill; (g) furnish details of challan in FORM GST ITC-04; (h) file an application for amendment or cancellation of enrolment under rule 58; and (i) file an intimation to pay tax under the compos

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

be inserted. 15. In the said rules, in rule 89, in sub-rule (2), for clause (f), the following clause shall be substituted, namely:- (f) a declaration to the effect that tax has not been collected from the Special Economic Zone unit or the Special Economic Zone developer, in a case where the refund is on account of supply of goods or services or both made to a Special Economic Zone unit or a Special Economic Zone developer; . 16. In the said rules, in rule 91,- (a) in sub-rule(2), the following proviso shall be inserted, namely:- Provided that the order issued in FORM GST RFD-04 shall not be required to be revalidated by the proper officer. ; (b) in sub-rule (3), the following proviso shall be inserted, namely:- Provided that the payment advice in FORM GST RFD-05 shall be required to be revalidated where the refund has not been disbursed within the same financial year in which the said payment advice was issued. . 17. In the said rules, in rule 92, in sub-rule (4), the following provis

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

y:- Note: – Your registration stands suspended with effect from (date). . 21. In the said rules, in FORM GST REG-20, at the end, the following Note shall be inserted, namely:- 2[ Note: – Suspension of registration stands revoked with effect from……..(date)".] 22. In the said rules, after FORM GST ITC-02, the following form shall be inserted, namely:- FORM GST ITC-02A [See rule 41A] Declaration for transfer of ITC pursuant to registration under sub-section (2) of section 25 1. GSTIN of transferor 2. Legal name of transferor 3. Trade name of transferor, if any 4. GSTIN of transferee 5. Legal name of transferee 6. Trade name of transferee, if any 7. Details of ITC to be transferred Tax Amount of matched ITC available Amount of matched ITC to be transferred 1 2 3 Central Tax State Tax UT Tax Integrated Tax Cess 8. Verification I __________________________________________ hereby solemnly affirm and declare that the information given hereinabove is true and correct to the best of my

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

clause 6,for the Table, the following Table shall be substituted, namely:- Rate of tax Total Turnover Out of turnover reported in (2), turnover of services Composition tax amount Central Tax State/UT Tax 1 2 3 4 5 (b) in clause 7, for the Table, the following Table shall be substituted, namely:- Quarter Rate Original details Revised details Total Turnover Out of turnover reported in (3), turnover of services Central Tax State/UT Tax Total Turnover Out of turnover reported in (7), turnover of services Central Tax State/UT Tax 1 2 3 4 5 6 7 8 9 10 ; 25. In the said rules, in FORM GST RFD-01, for the declaration under rule 89(2)(f), the following declaration shall be substituted, namely:- DECLARATION [rule 89(2)(f)] I hereby declare that tax has not been collected from the Special Economic Zone unit /the Special Economic Zone developer in respect of supply of goods or services or both covered under this refund claim. Signature Name – Designation / Status . 26. In the said rules, in FORM

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

7; 25 crore in respect of cess) Tax/Cess < total > (b) Details of payment of admitted amount and pre-deposit (pre-deposit 10% of the disputed tax and cess but not exceeding ₹ 25 crore each in respect of CGST, SGST or cess, or not exceeding ₹ 50 crore in respect of IGST and ₹ 25 crore in respect of cess) Sr. No. Description Tax payable Paid through Cash/ Credit Ledger Debit entry no. Amount of tax paid Central tax State/UT tax Integrated tax CESS 1 2 3 4 5 6 7 8 9 1. Integrated Cash Ledger tax Credit Ledger 2. Central tax Cash Ledger Credit Ledger 3. State/UT tax Cash Ledger Credit Ledger 4. CESS Cash Ledger Credit Ledger (c) Interest, penalty, late fee and any other amount payable and paid Sr. No. Description Amount payable Debit entry no. Amount paid Integrated tax Central tax State/UT tax CESS Integrated tax Central tax State/UT tax CESS 1 2 3 4 5 6 7 8 9 10 11 ; 1. Interest 2. Penalty 3. Late fee 4. Others (specify) (b) after clause 17, the following shall be

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

re each in respect of CGST, SGST or cess or not exceeding ₹ 100 crore in respect of IGST and ₹ 50 crore in respect of cess) shall be substituted; (b) after clause 14, the following shall be inserted, namely:- 15. Place of supply wise details of the integrated tax paid (admitted amount only) mentioned in the Table in sub-clause (a) of clause 14 (item (a)), if any Place of Supply (Name of State/UT) Demand Tax Interest Penalty Other Total 1 2 3 4 5 6 7 . Admitted amount [in the Table in sub-clause (a) of clause 14 (item (a))] [F.No.20/06/16/2018-GST (Pt. II)] (Gunjan Kumar Verma) Under Secretary to the Government of India Note:- The principal rules were published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i) vide notification No. 3/2017-Central Tax, dated the 19th June,2017, published vide number G.S.R 610 (E), dated the 19th June, 2017 and last amended vide notification No. 74/2018 – Central Tax, dated the 31st December, 2018, published vide numb

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

2019 (1) TMI 1515 – GUJARAT HIGH COURT – TMI – CENVAT Credit – Form-GST TRAN-1 – grievance of the technical glitches to GSTN – Held that:- Issue Notice to the newly added respondent Nos. 6 and 7 returnable on 30.1.2019. – R/SPECIAL CIVIL APPLICATION NO. 13813 of 2018 Dated:- 29-1-2019 – MS HARSHA DEVANI AND DR A. P. THAKER, JJ. For The Petitioner (s) : MR HARDIK P MODH (5344) AND MR NIRZAR S DESAI (2117) For The Respondent (s) : NOTICE SERVED (4) ORAL ORDER (PER : HONOURABLE MS.JUSTICE HARSHA DEVANI) 1. Learned advocate for the petitioner has tendered draft amendment. The amendment is allowed in terms of the draft. The same shall be carried out forthwith. 2. In the light of the averments made in the affidavit-inreply filed on behalf of th

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

2019 (2) TMI 93 – CESTAT HYDERABAD – TMI – Commercial training or coaching services – vocational training services – Benefit of N/N. 09/2003- ST and 24/2004-ST. – whether the appellant who provides training in management are covered by the definition of ‘commercial training or coaching services’ and consequently, whether the courses conducted by them are liable to be taxed as such? – exemption up to September, 2010 allowed or not?
–
Held that:- This matter had gone up to the Hon’ble Supreme Court and on remand CESTAT-Bangalore in M/S. THE INSTITUTE OF CHARTERED FINANCIAL ANALYSTS OF INDIA, HYDERABAD (ICFAI) VERSUS CC&CE, HYDERABAD [2013 (6) TMI 446 – CESTAT BANGALORE] held that three co-appellants in the case viz., ISB (appellant herein), the Institute of Chartered Financial Analysts of India and Badruka Institute of Foreign Trade were commercial training and coaching institutes. The matter was remanded back to the Commissioners only with respect to examining the availability of t

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

n part. – Appeal No. ST/26693/2013 – A/30137/2019 – Dated:- 29-1-2019 – Mr. M.V. Ravindran, Member (Judicial) And Mr. P. Venkata Subba Rao, Member (Technical) Shri S. Thirumalai, Advocate for the Appellant. Shri P.S. Reddy, Dy. Commissioner/AR for the Respondent. ORDER Per: P.V. Subba Rao. 1. This appeal has been filed against the Order-in-Original No. 22/2013- Adjn (Commr) ST – denovo dated 30.03.2013. 2. Learned counsel for the appellant takes us through the meandering course of events of this case. Initially, a show cause notice dated 27.09.2006 was issued to the appellant covering the period July, 2003 to March, 2006 which was followed by another show cause notice covering the period April, 2006 to March, 2007. After following due process, the lower authority confirmed the demand against the assessee under the category of commercial training or coaching services under Sec.65(105)(zzc) of the Finance Act, 1994. Aggrieved, the appellant filed an appeal before CESTAT Bangalore who, al

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

No.8787/2012 dated 18.11.2013 which is pending before the Hon ble Apex Court. Meanwhile, the adjudicating authority, in pursuance of the CESTAT s Final Order No.514-520/2012, took up the matter for adjudication and decided it, vide the impugned OIO. He held that the benefit of exemption notifications Nos.09/2003-ST & 24/2004-ST are not available to the appellant. This impugned order covered the period July, 2003 to September, 2011. 4. The issue which falls for consideration is whether the appellant who provides training in management are covered by the definition of commercial training or coaching services and consequently, whether the courses conducted by them are liable to be taxed as such. A related issue is whether the appellant is entitled for the benefit of notification Nos. 09/2003- ST and 24/2004-ST. If the appellant is entitled to the benefit of these exemption notifications they would be exempted up to September, 2010. 5. On the first question of whether appellant is lia

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

during the relevant period were recognized by law. Acceptance of any such degree/certificate/diploma by any varsity or other institutions abroad cannot mean recognition thereof by Indian law. Thus a conspectus of facts presented to us would clearly disclose the real character of the assessees activity – training or coaching for a consideration. The explanation to section 65(105)(zzc) of the Act has a very wide scope to encompass the activities of the assessees and render them eligible to service tax under section 65(105(zzc) of the Act. The decision of the Tribunal and this Court in Administrative Staff College of India and all other crucial decisions were rendered before the crucial retrospective amendment of section 65(105)(zzc) of the Act and, hence, are of no precedential value. The same is also the situation with regard to Board Circulars issued prior to amendment; Without prejudice alternative plea of availability of exemption under Notification 9/2003-ST dated 20.06.2003 is a vi

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

the benefit of Notifications 09/2003 & 24/2004. The finding given by the lower authority in the impugned order on this point is as follows: 15.2 In so far as the claim that ISB is a vocational training institute they reproduced the definition given in the notifications 9/2003 & 24/2004 and claimed that the syllabi and curriculum of the courses offered by them were so designed that the individuals who undergo these classes would be imparted specialized skills. In many instances they would get direct employment after these courses. They also enclosed the list of the individuals who were offered campus placements in the managerial cadres in reputed organizations with handsome salaries and perks. It is true that ISB has been imparting training in advanced management to enable the trainees to secure jobs. But it is to be understood that these courses are purely academic and educational. These are based on bookish literature, intellectual lectures from persons of repute related to a

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

o achieve better results in securing jobs for their students. This aspect of getting direct employment soon after completion of studies/courses which are offered by these institutions cannot make them vocational institutes. They continue to be academic institutions with the distinction of being called and known as professional (like engineering, medicine, polytechnic, management) colleges and non-professional colleges offering pure and applied sciences, arts, commerce, etc., By no stretch of imagination they can be called as vocational colleges or institutes. 7. The appellant also pleaded some additional grounds before the Commissioner as follows: 1) That the appellant had rendered educational services which cannot be classified under the category of commercial training or coaching services . 2) That the courses offered by ISB were recognized by law in view of Maharashtra State Government resolution and circulars issued by the Ministry of Education. 8. The learned Commissioner has not

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

lence with the areas related to business. g) Indian Institute of Management in Ahmedabad and Bangalore also offer similar diplomas and programmes and have also obtained accreditation internationally similar to the ones from whom they have obtained the accreditation. h) They also render the services of management consultant for which they have obtained service tax registration. Thereafter they also voluntarily got themselves registered with the service tax department under the category of commercial training or coaching services . However, they later intimated the department that no service tax is payable by them on the PGP, EEP, PGPMAX courses but have been paying service tax under protest. The department investigated the matter and after more than a year issued another summons and issued show cause notice on 27.09.2006 followed by periodical show cause notices. 9. This was followed by adjudication and subsequent legal proceedings culminating in the impugned denovo adjudication order.

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

in character and the institution or the establishment undertaking the activity must essentially be a commercial concern. In 2006, CBEC has issued circular stating that institutions like IITs & IIMs cannot be called commercial concerns. Similarly, in the present case, ISB is also a non-profit making company and not a commercial concern. The appellant is engaged in imparting education and such education is clearly beyond the intention of the legislation. They registered as a company under Sec.25(1)(a) of the Companies Act as a not for profit company and they do not declare any dividend or distribute surplus of profit. In the case of Institute of Banking Personnel Selection v. CST, Mumbai [2007 (8) STR 579 (Tri-Mumbai)] it was held that the institute is a charitable organisation. It is immaterial that they are collecting fees from the students to determine the taxability. Without prejudice to their contention that they are not covered by the definition of commercial training or coach

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

irectly after such training or coaching; ii. computer training institute means a commercial training or coaching centre which provides coaching or training relating to computer software or hardware; iii. recreational training institute means a commercial training or coaching centre which provides coaching or training relating to recreational activities such as dance, singing, martial arts, hobbies. 2. This notification shall come into force on the 1st day of July, 2003 and shall remain in force upto and inclusive of the 29th day of February, 2004. Notification No. 24/2004-Service Tax In exercise of the powers conferred by sub-section (1) of section 93 of the Finance Act, 1994 (32 of 1994), the Central Government, being satisfied that it is necessary in the public interest so to do, hereby exempts the taxable services provided in relation to commercial training or coaching, by, – (a) a vocational training institute; or (b) a recreational training institute, to any person, from the whole

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

l training institute in the above two notifications. The type of courses which they offer are theoretical and practical skill based training in areas such as Analytical Finance, Entrepreneurship, Strategy & Leadership, Operational Management, Information Technology Management and Strategic Management. 11. Learned counsel for the appellant at this stage draws the attention of the bench to the order of the CESTAT-Hyderabad in the case of Institute of Chartered Financial Analysts of India [2018 (10) GSTL 444] in which on an identical case, it was held that service tax demands raised and confirmed by the lower authority in denovo adjudication denying the benefit of aforesaid two exemption notifications is incorrect and unsustainable. 12. Learned departmental representative reiterates the findings of the lower authority and asserts that the appeal deserves to be dismissed. 13. We have considered the arguments on both sides and perused the records. The first issue to be decided is whethe

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

gainst which is before the Hon ble Apex Court. As far as the second issue of the benefit of exemption notifications is considered, both these exemption notifications are available for vocational training institutes which have been defined as in commercial training or coaching centre which provide vocational coaching or training that imparts skills to enable the trainee to seek employment or undertaken self employment directly after such training or coaching. We cannot think of a more practical job or self employment oriented training or coaching than management courses conducted by the appellant. In respect of another appellant in Final Order No.514-520/2012, we have already held that ICFAI is entitled to the benefit of these exemption notifications. In view of the above, we find that the appellant is entitled to the benefit of exemption notifications 9/2003-ST and 24/2004-ST. Consequently, the demand for the period July, 2003 to September, 2010 needs to be set aside and we do so. As f

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

2019 (2) TMI 247 – GUJARAT HIGH COURT – TMI – Provisional release of goods – job-work – excess stock of finished goods found during search operations in the premises of job-worker – petitioner requested to provisionally release the finished goods which belonged to the principal suppliers and had to be returned at the earliest – subsection (6) of section 67 of the CGST Act – Held that:- The manner has been prescribed under rule 140 of the CGST Rules, 2017 which provides that the seized goods may be released on a provisional basis upon execution of a bond for the value of the goods in FORM GST INS-04 and furnishing of a security in the form of a bank guarantee equivalent to the amount of applicable tax, interest and penalty payable – Thus the respondents are duly empowered to provisionally release the seized goods, if the requirements of section 67 (6) of the CGST Act read with rule 140 of the CGST Rules are satisfied.
–
The petitioner has already deposited ₹ 14,16,868/- by wa

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

/15.3.2018. 3. At the outset, Mr. Hardik Modh, learned advocate for the petitioner submits that he is pressing this petition only for the prayer for provisional release of the goods and does not press for any other relief at this stage. 4. The petitioner herein is engaged in the manufacture of jewellery from gold, diamond and precious metals on its own account as well as on job work basis and claims to be having substantial income from job work. Search came to be carried out at the factory premises of the petitioner on 11.1.2018 under section 67 (2) of the Central Goods and Service Tax Act, 2017 (hereinafter referred to as the CGST Act ) to ascertain whether the petitioner had paid GST in terms of the provisions of that Act. 4. During the course of search, the officers seized the excess stock of finished goods under seizure memo dated 11.1.2018 and handed over the seized goods under sealed cover to Shri Rajubhai N. Patel, partner of the petitioner, to keep the same in safe custody with

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

seized all the raw materials and finished goods lying on the first, second and third floors under the seizure memo dated 14/15.3.2018. Vide letter dated 13.3.2018, the petitioner requested the respondents to release the goods as they had paid GST at the appropriate rate under the Act along with penalty. 8. Thereafter, the petitioner furnished various documents from time to time and vide letter dated 29.5.2018 provided the reasons as to why the goods were not required to be seized, inter alia, stating that the petitioner being a job worker was not responsible for payment of GST on the value of supply of goods and that it was liable to pay GST only on job work charges. 9. Vide letter dated 19.6.2018, the competent authority extended the period of seizure in terms of section 67 (7) of the CGST Act for a further period of six months. Since the respondents failed to provisionally release the seized goods causing immense hardship to the petitioner, it has filed the present petition seeking t

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

r bond for removal of the goods seized. Referring to the show cause notice dated 8.1.2019, it was pointed out that in paragraph 75 (ii) thereof, the respondents have computed the total amount of tax payable on the seized goods at ₹ 46,75,791/-. It was submitted that, at best the penalty thereon would come to ₹ 23 lakhs and, therefore, the total amount would come to approximately ₹ 70 lakhs. It was submitted that since the goods are still lying with the respondent no interest would be payable thereon. It was submitted that the petitioner having already paid ₹ 14,16,868/- and having reversed credit of ₹ 7,90,793/-, the respondents may be directed to provisionally release the seized goods upon the petitioner furnishing a bank guarantee of ₹ 50 lakhs. 11. On the other hand, Mr. Nirzar Desai, learned Senior Standing Counsel for the respondent submitted that, in terms of the show cause notice, the total proposed demand comes to around ₹ 13 crores, an

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

ty in the form of a bank guarantee equivalent to the amount of applicable tax, interest and penalty payable. 13. Thus the respondents are duly empowered to provisionally release the seized goods, if the requirements of section 67 (6) of the CGST Act read with rule 140 of the CGST Rules are satisfied. 14. It is an admitted position that in terms of the show cause notice, the total amount of tax payable on the seized goods, totally valued at ₹ 15,58,59,711/- is ₹ 46,75,791/-. Adding 50% towards penalty, the total amount would come to approximately ₹ 70 lakhs. The petitioner has already deposited ₹ 14,16,868/- by way of challan and has reversed credit of SGST to the tune of ₹ 7,90,793/-, which comes to approximately ₹ 22 lakhs. Under the circumstances, if the petitioner furnishes bank guarantee of ₹ 50 lakhs and a bond for the value of the goods in FORM GST INS-04, the interest of justice would be served. 14. In the light of the above discussion,

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =