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GST – States – S.O. No.82 – 58/2018 – State Tax – Dated:- 6-12-2018 – COMMERCIAL TAXES DEPARTMENT Notification 6th December, 2018 Notification No. 58/2018 – State Tax S.O. No.82- Dated- 6th December, 2018- In exercise of the powers conferred by section 148 of the Jharkhand Goods and Services Tax Act, 2017 (12 of 2017) (hereafter in this notification referred to as the said Act ), read with section 45 of the said Act and rule 81 of the Jharkhand Goods and Services Tax Rules, 2017 (hereinafter re

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Goods and Services Tax – Started By: – Sunil Singla – Dated:- 5-12-2018 Last Replied Date:- 11-12-2018 – SIRONE OF OUR CLIENT IS GTA HAS SHIFTED HIM/ITSELF FROM RCM TO FCMNOW HIS QUERY IS THAT HE IS CHARGING FREIGHT FROM TWO TYPES OF CUSTOMERS: ONE IS INDUSTRIALIST OTHER IS FURTHER GTA. HIS QUERY IS THAT WHETHER HE HAS TO CHARGE GST FROM GTA OR NOT . WHETHER GTA TO GTA SERVICES ARE EXEMPTED SERVIES OR NOT.REGARDS ALL Reply By DR.MARIAPPAN GOVINDARAJAN – The Reply = What type of service is rendered between these two GTAs. – Reply By KASTURI SETHI – The Reply = No exemption from GTA to GTA is available. Your client is providing service of GTA under Forward Charge Mechanism. So it is his responsibility to collect GST on freight and deposit wi

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port. A support from a learned person matters a lot to me. Really it is moral boosting for me, especially, in view of the time taken and pondered over again and again on a unique question. – Reply By DR.MARIAPPAN GOVINDARAJAN – The Reply = Sethi sir, Actually I learnt a lot. You were in the department and you must have vast experience. Being an officer in BSNL my expertisation is only on service tax matters. – Reply By KASTURI SETHI – The Reply = An extract of GST Council Meeting held on 5.8.17, option has to be given for providing GTA service under Forward Charge Mechanism S.No.8 Transport Agency Service (GTA) Allowed option of 12% GST with full ITC under forward charge. 5% GST with no ITC will also continue. (However, the GTA has to give

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Goods and Services Tax – Started By: – Seena James – Dated:- 5-12-2018 Last Replied Date:- 6-12-2018 – Respected Sir,Good day!A registered tax payer with around 7 lakhs income from house boat service of FY 2017-18 were not shown while filing the GST returns. As the returns filed cannot be revised what shall we do while filing the annual return for the FY 2017-18.I would be grateful for your prompt reply.Thank you – Reply By KASTURI SETHI – The Reply = (i) You will get an opportunity to rectify

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GST – Started By: – Kaustubh Karandikar – Dated:- 5-12-2018 Last Replied Date:- 17-1-2019 – XYZ imported goods and input tax credit taken on it for IGST charged in the Bill of Entry. These goods were rejected being wrong supply and re-exported to the supplier. 1) Can they claim input tax credit of IGST paid? 2) While re-exporting to the supplier, can they export without payment of GST under LUT even if they had taken input tax credit of the IGST? – Reply By YAGAY andSUN – The Reply = Except cer

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Goods and Services Tax – Started By: – Ravikumar Doddi – Dated:- 5-12-2018 Last Replied Date:- 6-12-2018 – Dear sir,Applicant is a proprietor running a Pre primary educational institution ( Kinder garden school) neither it is a trust or society is liable for GST or exempted, HSN Code, rate of tax, if any exemption Notification Number and date, please clarify – Reply By KASTURI SETHI – The Reply = HSN 999210 Fully exempted as per Board's Flyer No.40 dated 1.1.18 C.B.E. & C. Flyer No. 40,

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Goods and Services Tax – GST – Dated:- 5-12-2018 – GOODS AND SERVICE TAX (GST) CONCEPT & STATUS CENTRAL BOARD OF INDIRECT TAXES AND CUSTOMS (CBIC) DEPARTMENT OF REVENUE MINISTRY OF FINANCE GOVERNMENT OF INDIA AS ON 1st DECEMBER, 2018 The uniform system of taxation, which, with a few exceptions of no great consequence, takes place in all the different parts of the United Kingdom of Great Britain, leaves the interior commerce of the country, the inland and coasting trade, almost entirely free. The inland trade is almost perfectly free, and the greater part of goods may be carried from one end of the kingdom to the other, without requiring any permit or let-pass, without being subject to question, visit, or examination from the revenue officers. ……This freedom of interior commerce, the effect of uniformity of the system of taxation, is perhaps one of the principal causes of the prosperity of Great Britain; every great country being necessarily the best and most extensiv

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Article 265 of the Constitution of India provides that no tax shall be levied or collected except by authority of law. As per Article 246 of the Constitution, Parliament has exclusive powers to make laws in respect of matters given in Union List (List I of the Seventh Schedule) and State Government has the exclusive jurisdiction to legislate on the matters containing in State List (List II of the Seventh Schedule). In respect of the matters contained in Concurrent List (List III of the Seventh Schedule), both the Central Government and State Governments have concurrent powers to legislate. 2.2 Before advent of GST, the most important sources of indirect tax revenue for the Union were customs duty (entry 83 of Union List), central excise duty (entry 84 of Union List), and service tax (entry 97 of Union List). Although entry 92C was inserted in the Union List of the Seventh Schedule of the Constitution by the Constitution (Eighty-eighth Amendment) Act, 2003 for levy of taxes on services

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ION IN POSTINDEPENDENCE INDIA TILL GST: 3.1 In post-Independence period, central excise duty was levied on a few commodities which were in the nature of raw materials and intermediate inputs, and consumer goods were outside the net by and large. The first set of reform was suggested by the Taxation Enquiry Commission (1953-54) under the chairmanship of Dr. John Matthai. The Commission recommended that sales tax should be used specifically by the States as a source of revenue with Union governments' intervention allowed generally only in case of inter-State sales. It also recommended levy of a tax on inter-State sales subject to a ceiling of 1%, which the States would administer and also retain the revenue. 3.2 The power to levy tax on sale and purchase of goods in the course of interState trade and commerce was assigned to the Union by the Constitution (Sixth Amendment) Act, 1956. By mid-1970s, central excise duty was extended to most manufactured goods. Central excise duty was lev

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with the New Economic Policy of 1991. The Tax Reforms Committee under the chairmanship of Prof. Raja J Chelliah was appointed in 1991. This Committee recommended broadening of the tax base by taxing services and pruning exemptions, consolidation and lowering of rates, extension of MODVAT on all inputs including capital goods. It suggested that reform of tax structure must have to be accompanied by a reform of tax administration, if complete benefits were to be derived from the tax reforms. Many of the recommendations of the Chelliah Committee were implemented. In 1999-2000, tax rates were merged in three rates, with additional rates on a few luxury goods. In 2000-01, three rates were merged into one rate called Central Value Added Tax (CENVAT). A few commodities were subjected to special excise duty. 3.5 Taxation of services by the Union was introduced in 1994 bringing in its ambit only three services, namely general insurance, telecommunication and stock broking. Gradually, more and

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an ten in some States and these varied for the same commodity in different States. Inter-state sales were subjected to levy of Central Sales Tax. As this tax was appropriated by the exporting State credit was not allowed by the dealer in the importing State. This resulted into exportation of tax from richer to poorer states and also cascading of taxes. Interestingly, States had power of taxation over services from the very beginning. States levied tax on advertisements, luxuries, entertainments, amusements, betting and gambling. 3.7 A report, titled Reform of Domestic Trade Taxes in India , on reforming indirect taxes, especially State sales tax, by National Institute of Public Finance and Policy under the leadership of Dr. Amaresh Bagchi, was prepared in 1994. This Report prepared the ground for implementation of VAT in States. Some of the key recommendations were; replacing sales tax by VAT by moving over to a multistage system of taxation; allowing input tax credits for all inputs,

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o implement VAT, in 2003. In 2005, VAT was implemented in most of the states. Uttar Pradesh was the last State to implement VAT, from 1st January, 2008. 4. INTERNATIONAL PERSPECTIVES ON GST / VAT: 4.1 VAT and GST are used inter-changeably as the latter denotes comprehensiveness of VAT by coverage of goods and services. France was the first country to implement VAT, in 1954. Presently, more than 160 countries have implemented GST / VAT in some form or the other. The most popular form of VAT is where taxes paid on inputs are allowed to be adjusted in the liability at the output. The VAT or GST regime in practice varies from one country to another in terms of its technical aspects like definition of supply , extent of coverage of goods and services , treatment of exemptions and zero rating etc. However, at a broader level, it has one common principle, it is a destination based consumption tax. From economic point of view, VAT is considered to be a superior system over sales tax of taxing

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separately are called non- participating provinces , whereas provinces which have teamed up with the Federal Government for tax administration are called participating provinces . 4.3 The rate of GST varies across countries. While Malaysia has a lower rate of 6% (Malaysia though scrapped GST in 2018 due to popular uproar against it), Hungary has one of the highest rate of 27%. Australia levies GST at the rate of 10% whereas Canada has multiple rate slabs. The average rate of VAT across the EU is around 19.5%. 5. NEED FOR GST IN INDIA: 5.1 The introduction of CENVAT removed to a great extent cascading burden by expanding the coverage of credit for all inputs, including capital goods. CENVAT scheme later also allowed credit of services and the basket of inputs, capital goods and input services could be used for payment of both central excise duty and service tax. Similarly, the introduction of VAT in the States has removed the cascading effect by giving set-off for tax paid on inputs as

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takes place. Despite remarkable harmonization in VAT regimes under the auspices of the EC, the national market was fragmented with too many obstacles in free movement of goods necessitated by procedural requirement under VAT and CST. 5.4 In the constitutional scheme, taxation powers on goods was with Central Government but it was limited upto the stage of manufacture and production while States have powers to tax sale and purchase of goods. Centre had powers to tax services and States also had powers to tax certain services specified in clause (29A) of Article 366 of the Constitution. This sort of division of taxing powers created a grey zone which led to legal disputes. Determination of what constitutes a goods or service is difficult because in modern complex system of production, a product is normally a mixture of goods and services. 5.5 As can be seen from the previous paragraphs, India moved towards value added taxation both at Central and State level, and this process was complet

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s request, would work with the Central Government to prepare a road map for introduction of GST in India. After this announcement, the EC decided to set up a Joint Working Group in May 10, 2007, with the then Adviser to the Union Finance Minister and Member-Secretary of the Empowered Committee as its Co-conveners and four Joint Secretaries of the Department of Revenue of Union Finance Ministry and all Finance Secretaries of the States as its members. This Joint Working Group got itself divided into three Sub-Groups and had several rounds of internal discussions as well as interaction with experts and representatives of Chambers of Commerce & Industry. On the basis of these discussions and interaction, the Sub-Groups submitted their reports which were then integrated and consolidated into the report of Joint Working Group (November 19, 2007). 6.3 This report was discussed in detail in the meeting of the EC on November 28, 2007, and the States were also requested to communicate their

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t, the EC released its First Discussion Paper (FDP) on GST in November, 2009. This spelled out the features of the proposed GST and has formed the basis for discussion between the Centre and the States. 7. CHALLENGES IN DESIGNING GST: 7.1 In the discussion that preceded amendment in the Constitution for GST, there were a number of thorny issues that required resolution and agreement between Central Government and State Governments. Implementing a tax reform as vast as GST in a diverse country like India required the reconciliation of interests of various States with that of the Centre. Some of the challenging issues, addressed in the run up to GST, were the following: 7.2 Origin-based versus Destination-based taxation: GST is a destination based consumption tax. Under destination based taxation, tax accrues to the destination place where consumption of the goods or services takes place. The existing VAT regime was based on origin principle where Central Sales Tax was assigned to the St

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mer goods expands the sales tax base of the producing states and thereby contributes to their revenues. In fact, to the extent that consumer expenditures are dependent on the level of income of the residents of a State, it is the producing States that stand to gain the most in additional sales tax revenues (even under the destination basis of consumption taxes) from increased export output. 7.3 Rate Structure and Compensation: There was uncertainty about gains in revenue after implementation of GST. Though attempts were made to estimate a revenue neutral rate, nonetheless it remains an estimate only. It was difficult to estimate accurately as to how much the States will gain from tax on services and how much they will lose on account of removal of cascading effect and phasing out of CST. In view of this, States asked for compensation during the first five years of implementation of GST. 7.3.1 A Committee headed by the Chief Economic Adviser Dr. Arvind Subramanian on possible tax rates

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d that all stakeholders stick to the decisions taken by the supreme body, which was later constituted as the Goods and Services Tax Council (the Council). However, the possibility of departure from the recommendations of such body cannot be completely ruled out. Any departure would definitely affect other stakeholders and in such circumstances there must be a statutory body to which affected parties may approach for dispute resolution. The nature of such dispute resolution body was a bone of contention. Under the Constitution (One Hundred Fifteenth Amendment) Bill, 2011, a Goods and Services Tax Dispute Settlement Authority was to be constituted for this purpose. This body was judicial in nature. The proposed constitution of this Authority was challenged because it s powers would override the supremacy of the Parliament and the State Legislatures. The Constitution (One Hundred Twenty Second Amendment) Bill, 2014 departed from the previous GST amendment bill and proposed that the Goods

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h these are also under GST. Thus, to ensure smooth transition and provide fiscal buffer to States, it was agreed to keep alcohol completely out of the ambit of GST. 8. CONSTITUTIONAL AMENDMENT: 8.1 As explained above, unification of Central VAT and State VAT was possible in form of a dual levy under the constitutional scheme. Power of taxation is assigned to either Union or States subject-wise under Schedule VII of the Constitution. While the Centre is empowered to tax goods upto the production or manufacturing stage, the States have the power to tax goods at distribution stage. The Union can tax services using residuary powers but States could not. Under a unified Goods and Services Tax scheme, both should have power to tax the complete supply chain from production to distribution, and both goods and services. The scheme of the Constitution did not provide for any concurrent taxing powers to the Union as well as the States and for the purpose of introducing goods and services tax amen

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nally passed in the Rajya Sabha and thereafter by Lok Sabha in August, 2016. Further the bill was ratified by required number of States and received assent of the President on 8th September, 2016 and has since been enacted as Constitution (101st Amendment) Act, 2016 w.e.f. 16th September, 2016. 8.4 The important changes introduced in the Constitution by the 101st Amendment Act are the following: Insertion of new article 246A which makes enabling provisions for the Union and States with respect to the GST legislation. It further specifies that Parliament has exclusive power to make laws with respect to GST on inter-State supplies. Article 268A of the Constitution has been omitted. The said article empowered the Government of India to levy taxes on services. As tax on services has been brought under GST, such a provision was no longer required. Article 269A has been inserted which provides for goods and services tax on supplies in the course of inter-State trade or commerce which shall b

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s have been defined. Article 368 has been amended to provide for a special procedure which requires the ratification of the Bill by the legislatures of not less than one half of the States in addition to the method of voting provided for amendment of the Constitution. Thus, any modification in GST Council shall also require the ratification by the legislatures of one half of the States. Entries in List I and List II have been either substituted or omitted to restrict power to tax goods or services specified in these Lists or to take away powers to tax goods and services which have been subsumed in GST. Parliament shall, by law, on the recommendation of the Goods and Services Tax Council, provide for compensation to the States for loss of revenue arising on account of implementation of the goods and services tax for five years. In case of petroleum and petroleum products, it has been provided that these goods shall not be subject to the levy of Goods and Services Tax till a date notifie

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a specified period to raise additional resources during any natural calamity or disaster; special provision with respect to the North- East States, J&K, Himachal Pradesh and Uttarakhand; and any other matter relating to the GST, as the Council may decide. 9.2 The Council shall recommend the date on which the goods and services tax be levied on petroleum crude, high speed diesel, motor spirit (commonly known as petrol), natural gas and aviation turbine fuel. While discharging the functions conferred by this article, the Goods and Services Tax Council shall be guided by the need for a harmonized structure of goods and services tax and for the development of a harmonized national market for goods and services. 9.3 One half of the total number of Members of the Goods and Services Tax Council shall constitute the quorum at its meetings. The Goods and Services Tax Council shall determine the procedure in the performance of its functions. Every decision of the Goods and Services Tax Coun

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e Act. Composition scheme shall not be available to interState suppliers, service providers (except restaurant service) and specified category of manufacturers. For special category States (except J&K and Uttarakhand) enumerated in article 279A of the Constitution, threshold exemption limit has been fixed at ₹ 75 lakh. (iii) Existing tax incentive schemes of Central or State governments may be continued by respective government by way of reimbursement through budgetary route. The schemes, in the present form, would not continue in GST. Further, 50% exemption of the CGST portion will be provided to CSD (Defense Canteens). (iv) Recommending GST laws, namely CGST Law, UTGST Law, IGST Law, SGST Law and GST Compensation Law paving the way for implementation of GST. (v) In order to ensure single interface, all administrative control over 90% of taxpayers having turnover below ₹ 1.5 crore would vest with State tax administration and over 10% with the Central tax administration

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7; 20 lakh, making inter State supplies; Suppliers of services, having turnover upto ₹ 20 lakh, making supplies through e-commerce platforms. (xi) The reverse charge mechanism under sub-section (4) of section 9 of the CGST Act, 2017 and under sub-section (4) of section 5 of the IGST Act, 2017 has been suspended till 30.09.2019. (xii) There shall be no requirement on payment of tax on advance received for supply of goods by all taxpayers. (xiii) Supply from GTA to unregistered persons has been exempted from tax. (xiv) TDS/TCS provisions to be implemented from 01.10.2018. Further, to provide some more time to TDS deductor to familiarize themselves with the new system, last date for furnishing return in FORM GSTR-7 for the months of October, November & December has been extended upto 31st January, 2019. Further, exemption from TDS for been made for supply made by PSU to PSU. (xv) E-Wallet Scheme shall be introduced for exporters from 01.04.2019 and till then relief for exporters

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September, 2018 has been extended till 31st December, 2018. (xx) Late fee for delayed filing of return in FORM GSTR-3B for the months of July, 2017 to September, 2017 has been waived. The amount of late fee already paid but subsequently waived off shall be re-credited to the Electronic Cash Ledger of registered person under Tax head instead of Fee head. (xxi) From October 2017 onwards, the amount of late fee for late filing of GSTR-3B payable by a registered person is as follows: whose tax liability for that month was NIL will be ₹ 20/- per day instead of ₹ 200/- per day; whose tax liability for that month was not NIL will be ₹ 50/- per day instead of ₹ 200/- per day. (xxii) Facility has been introduced for manual filing of refund application. (xxii) Supply of services to Nepal and Bhutan shall be exempted from GST even if payment has not been received in foreign convertible currency – such suppliers shall be eligible for input tax credit. (xxiii) Centralized UI

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GST Act, IGST Act, UTGST Act and the GST (Compensation to States) Act. These amendments have been passed by Parliament and have been enacted, after receiving the assent of the Hon ble President of India on 29.08.2018, as the Central Goods and Services Tax (Amendment) Act, 2018, the Integrated Goods and Services Tax (Amendment) Act, 2018, the Union Territory Goods and Services Tax (Amendment) Act, 2018 and the Goods and Services Tax (Compensation to States) Amendment Act, 2018, respectively. The major amendments brought about by these Acts are as below: (i) Upper limit of turnover for opting for composition scheme to be raised from ₹ 1 Cr to ₹ 1.5 Cr. Present limit of turnover can now be raised on the recommendations of the Council. (ii) Composition dealers to be allowed to supply services (other than restaurant services), for up to a value not exceeding 10% of turnover in the preceding financial year, or ₹ 5 lakh, whichever is higher. (iii) Levy of GST on reverse char

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place in the non-taxable territory to another place in the non-taxable territory without such goods entering into India; (b) Supply of warehoused goods to any person before clearance for home consumption; and (c) Supply of goods in case of high sea sales. (ix) Scope of input tax credit is being widened, and it would now be made available in respect of the following: (a) Most of the activities or transactions specified in Schedule III; (b) Motor vehicles for transportation of persons having seating capacity of more than thirteen (including driver), vessels and aircraft (c) Services of general insurance, repair and maintenance in respect of motor vehicles, vessels and aircraft on which credit is available; and (d) Goods or services which are obligatory for an employer to provide to its employees, under any law for the time being in force (x) Registered persons may issue consolidated credit/debit notes in respect of multiple invoices issued in a Financial Year. (xi) Amount of pre-deposit

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er 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 this amount shall be adjusted against the amount finally apportioned. (xviii) Fifty per cent of such amount, as may be recommended by the Council, which remains unutilised in the Compensation Fund, at any point of time in any financial year during the transition period shall be transferred to the Consolidated Fund of India as the share of Centre, and the balance fifty per cent. shall be distributed amongst the States in the ratio of their base year revenue. (xix) In case of shortfall in the amount collected in the Fund against the requirement of compensation to be released for any two months period, fifty per cent. of the same, but not exceeding the total amount transferred to the Centre and the States as recommended by the Council, shall be recovered from the Centre and the balance fifty per cent. from the States in the ratio of their base y

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n is automatically filled based on the invoices uploaded by the buyer and the supplier. Simply put, the process would be UPLOAD – LOCK – PAY for most tax payers. (iv) Taxpayers would have facility to create his profile based on nature of supplies made and received. The fields of information which a taxpayer would be shown and would be required to fill in the return would depend on his profile. (v) NIL return filers (no purchase and no sale) shall be given facility to file return by sending SMS. (vi) There shall be quarterly filing of return for the small taxpayers having turnover below ₹ 5 Cr as an optional facility. Quarterly return shall be similar to main return with monthly payment facility but for two kinds of registered persons – small traders making only B2C supply or making B2B + B2C supply. For such taxpayers, simplified returns have been designed called Sahaj and Sugam. In these returns details of information required to be filled is lesser than that in the regular retu

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lled UTGST (Union territory tax) in Union Territories without legislature. CGST & SGST / UTGST shall be levied on all taxable intra-State supplies. 10.2 The IGST Model: Inter-State supply of goods or services shall be subjected to integrated GST (Integrated tax / IGST). The IGST model is a unique contribution of India in the field of VAT. The IGST Model envisages that Centre would levy IGST (Integrated Goods and Service Tax) which would be CGST plus SGST on all inter-State supply of goods or services or both. The inter-State supplier will pay IGST on value addition after adjusting available credit of IGST, CGST, and SGST on his purchases. The Exporting State will transfer to the Centre the credit of SGST used in payment of IGST. The person based in the destination State will claim credit of IGST while discharging his output tax liability in his own State. The Centre will transfer to the importing State the credit of IGST used in payment of SGST. The relevant information will also b

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it goods, like tobacco and tobacco products, pan masala, aerated water, motor vehicles is imposed to compensate States for any revenue loss on account of implementation of GST. The list of goods and services in case of which reverse charge would be applicable has also been notified. 10.4 Compensation to States: The Goods and Services Tax (Compensation to States) Act, 2017 provides for compensation to the States for the loss of revenue arising on account of implementation of the goods and services tax. Compensation will be provided to a State for a period of five years from the date on which the State brings its SGST Act into force. For the purpose of calculating the compensation amount in any financial year, year 2015-16 will be assumed to be the base year, for calculating the revenue to be protected. The growth rate of revenue for a State during the five-year period is assumed be 14% per annum. The base year tax revenue consists of the states tax revenues from: (i) State Value Added T

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date on or before 3rd June, 2018. All States have notified e-way bill rules for intra-State supplies last being NCT of Delhi where it was introduced w.e.f. 16th June, 2018. 10.6 Anti-Profiteering Mechanism: Implementation of GST in many countries was coupled with increase in inflation and the prices of the commodities. This happened in spite of the availability of the tax credit. This was happening because the supplier was not passing on the benefit to the consumer and thereby indulging in illegal profiteering. Any reduction in rate of tax or the benefit of increased input tax credit should have been passed on to the recipient by way of commensurate reduction in prices. 10.6.1 National Anti-profiteering Authority (NAPA) has been constituted under GST by the Central Government to examine the complaints of non-passing the benefit of reduced tax incidence. The Authority shall cease to exist after the expiry of two years from the date on which the Chairman enters upon his office unless th

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79A of the Constitution) would be exempt from GST. The GST Act has been amended to raise threshold exemption limit in case of six more special category States. The amendment shall be effective from a date to be notified in the future. The benefit of threshold exemption is not available in inter-State supplies of goods. 10.9 Composition Scheme: An optional composition scheme (i.e. to pay tax at a flat rate on turnover without credits) is available to small taxpayers (including to manufacturers other than specified category of manufacturers and service providers) having an annual turnover of up to ₹ 1 Cr (Rs. 75 lakh for special category States (except J&K and Uttarakhand) enumerated in article 279A of the Constitution). This limit has been raised to ₹ 1.5 Cr after necessary amendments in the GST Acts. The amendment shall be effective from a date to be notified in the future. 10.10 Zero rated Supplies: Export of goods and services are zero rated. Supplies to SEZs develope

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by the originating State to the Centre. Similarly, the IGST used for payment of SGST would be transferred by Centre to the destination State. Further the SGST portion of IGST collected on B2C supplies would also be transferred by Centre to the destination State. The transfer of funds would be carried out on the basis of information contained in the returns filed by the taxpayers. 10.13 Modes of Payment: Various modes of payment of tax available to the taxpayer including internet banking, debit/ credit card and National Electronic Funds Transfer (NEFT) / Real Time Gross Settlement (RTGS). 10.14 Tax Deduction at Source: Obligation on certain persons including government departments, local authorities and government agencies, who are recipients of supply, to deduct tax at the rate of 1% from the payment made or credited to the supplier where total value of supply, under a contract, exceeds two lakh and fifty thousand rupees. The provision for TDS has been operationalized wef 01st October

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raising demand for short-payment or non-payment of tax or erroneous refund and its adjudication in normal cases. Limitation period for raising demand is five (5) years from the due date of filing of annual return or from the date of erroneous refund for raising demand for short-payment or non-payment of tax or erroneous refund and its adjudication in case of fraud, suppression or willful mis-statement. 10.18 Recovery of Arrears: Arrears of tax to be recovered using various modes including detaining and sale of goods, movable and immovable property of defaulting taxable person. 10.19 Appellate Tribunal: Goods and Services Tax Appellate Tribunal would be constituted by the Central Government for hearing appeals against the orders passed by the Appellate Authority or the Revisional Authority. States would adopt the provisions relating to Tribunal in respective SGST Act. 10.20 Advance Ruling Authority: Advance Ruling Authority would be constituted by States in order to enable the taxpayer

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ing and gambling, cesses and surcharges insofar as they related to supply of goods or services were subsumed. 11. GST LEGISLATIONS: 11.1. Four Laws namely CGST Act, UTGST Act, IGST Act and GST (Compensation to States) Act were passed by the Parliament and since been notified on 12th April, 2017. All the other States (except J&K) and Union territories with legislature have passed their respective SGST Acts. The economic integration of India was completed on 8th July, 2017 when the State of J&K also passed the SGST Act and the Central Government also subsequently extended the CGST Act to J&K. 11.2. In its 28th meeting held in New Delhi on 21.07.2018, the GST Council recommended certain amendments in the CGST Act, IGST Act, UTGST Act and the GST (Compensation to States) Act. These amendments have been passed by Parliament and have been enacted, after receiving the assent of the Hon ble President of India on 29.08.2018, as the Central Goods and Services Tax (Amendment) Act, 201

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en issued by all the States under the respective SGST Act. Apart from the notifications, 78 circulars and 16 orders have also been issued by CBIC on various subjects like proper officers, ease of exports, and extension of last dates for filling up various forms, etc. 12. ROLE OF CBIC: 12.1 CBIC is playing an active role in the drafting of GST law and procedures, particularly the CGST and IGST law, which will be exclusive domain of the Centre. This apart, the CBIC has prepared itself for meeting the implementation challenges, which are quite formidable. The number of taxpayers has gone up significantly. The existing IT infrastructure of CBIC has been suitably scaled up to handle such large volumes of data. Based on the legal provisions and procedure for GST, the content of work-flow software such as ACES (Automated Central Excise & Service Tax) would require re-engineering. The name of IT project of CBIC under GST is SAKSHAM involving a total project value of ₹ 2,256 Cr. 12.2

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d enquiry on anti-profiteering cases and should give his recommendation for consideration of the National Anti-profiteering Authority. 12.5 CBIC has been instrumental in handholding the implementation of GST. It had set up the Feedback and Action Room which monitored the GST implementation challenges faced by the taxpayer and act as an active interface between the taxpayer and the Government. 13. GOODS & SERVICES TAX NETWORK: 13.1 Goods and Services Tax Network (GSTN) has been set up by the Government as a private company under erstwhile Section 25 of the Companies Act, 1956. GSTN would provide three front end services to the taxpayers namely registration, payment and return. Besides providing these services to the taxpayers, GSTN would be developing back-end IT modules for 27 States who have opted for the same. Infosys has been appointed as Managed Service Provider (MSP). GSTN has selected 73 IT, ITeS and financial technology companies and 1 Commissioner of Commercial Taxes (CCT,

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on role based access. The taxpayer can access his own data through identified applications like registration, return, view ledger etc. The tax official having jurisdiction, as per GST law, can access the data. Data can be accessed by audit authorities as per law. No other entity can have any access to data available with GSTN. 14. GST: A GAME CHANGER FOR INDIAN ECONOMY: 14.1 GST will have a multiplier effect on the economy with benefits accruing to various sectors as discussed below. 14.2 Benefits to the exporters: The subsuming of major Central and State taxes in GST, complete and comprehensive setoff of input goods and services and phasing out of Central Sales Tax (CST) would reduce the cost of locally manufactured goods and services. This will increase the competitiveness of Indian goods and services in the international market and give boost to Indian exports. The uniformity in tax rates and procedures across the country will also go a long way in reducing the compliance cost. 14.3

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chain of set-offs which will result in widening of tax base and better tax compliance may also lead to lowering of tax burden on an average dealer in industry, trade and agriculture. 14.5 Benefits for common consumers: With the introduction of GST, the cascading effects of CENVAT, State VAT and service tax will be more comprehensively removed with a continuous chain of set-off from the producer s point to the retailer s point than what was possible under the prevailing CENVAT and VAT regime. Certain major Central and State taxes will also be subsumed in GST and CST will be phased out. Other things remaining the same, the burden of tax on goods would, in general, fall under GST and that would benefit the consumers. 14.6 Promote Make in India : GST will help to create a unified common national market for India, giving a boost to foreign investment and Make in India campaign. It will prevent cascading of taxes and make products cheaper, thus boosting aggregate demand. It will result in ha

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ndustries. This will create India as a Manufacturing hub . 14.7 Ease of Doing Business: Simpler tax regime with fewer exemptions along with reduction in multiplicity of taxes that are at present governing our indirect tax system will lead to simplification and uniformity. Reduction in compliance costs as multiple record-keeping for a variety of taxes will not be needed, therefore, lesser investment of resources and manpower in maintaining records. It will result in simplified and automated procedures for various processes such as registration, returns, refunds, tax payments. All interaction shall be through the common GSTN portal, therefore, less public interface between the taxpayer and the tax administration. It will improve environment of compliance as all returns to be filed online, input credits to be verified online, encouraging more paper trail of transactions. Common procedures for registration of taxpayers, refund of taxes, uniform formats of tax return, common tax base, commo

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filed for February, 2018 73,86,339 15. No. of 3(B) returns filed for March, 2018 74,44,829 16. No. of 3(B) returns filed for April, 2018 74,05,472 17. No. of 3(B) returns filed for May, 2018 74,89,674 18. No. of 3(B) returns filed for June, 2018 75,22,043 19. No. of 3(B) returns filed for July, 2018 75,15,731 20. No. of 3(B) returns filed for August, 2018 74,84,227 21. No. of 3(B) returns filed for September, 2018 73,53,188 22. No. of 3(B) returns filed for October, 2018 69,60,318 23. No. of GSTR 1 returns filed for July, 2017 59,41,377 24. No. of GSTR 1 returns filed for August, 2017 24,63,078 25. No. of GSTR 1 returns filed for September, 2017 66,32,774 26. No. of GSTR 1 returns filed for October, 2017 25,30,098 27. No. of GSTR 1 returns filed for November, 2017 25,59,048 28. No. of GSTR 1 returns filed for December, 2017 66,59,016 29. No. of GSTR 1 returns filed for January, 2018 25,38,847 30. No. of GSTR 1 returns filed for February, 2018 25,32,136 31. No. of GSTR 1 returns filed f

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94,064 3. October, 17 93,333 4. November, 17 83,780 5. December, 17 84,314 6. January, 18 89,825 7. February, 18 85,962 8. March, 18 92,167 9. April, 18 1,03,459 10. May, 18 94,016 11. June, 18 95,610 12. July, 18 96,483 13. August, 18 93,960 14. September, 18 94,442 15. October, 18 1,00,710 16. November, 18 97,637 16. CHALLENGES & FUTURE AHEAD: 16.1 Any new change is accompanied by difficulties and problems at the outset. A change as comprehensive as GST is bound to pose certain challenges not only for the government but also for business community, tax administration and even common citizens of the country. Some of these challenges relate to the unfamiliarity with the new regime and IT systems, legal challenges, return filing and reconciliations, passing on transition credit. Lack of robust IT infrastructure and system delays makes compliance difficult for the taxpayers. Many of the processes in the GST are new for small and medium enterprises in particular, who were not used to

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Goods and Services Tax – GST – Dated:- 5-12-2018 – Reference is invited to Press Releases dated 1.11.2018 and 29.11.2018 regarding exam to be conducted on 17.12.2018 for GST Practitioners (GSTPs) covered under clause (b) of sub-rule (1) of Rule 83 of CGST Rules 2017, i.e. those enrolled as a sales tax practitioners or tax return preparer under the existing law for a period not less than five years, and enrolled under sub-rule (2) of Rule 83 of the said Rules. For the said examination, candidate

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Goods and Services Tax – GST – By: – Dr. Sanjiv Agarwal – Dated:- 5-12-2018 – With general elections in the country slated to be in May, 2019 will have interim budget only before the Lok Sabha elections. According to convention, the Budget speeches immediately preceding a Lok Sabha election do not have a distinct Part B, and only a very limited number of tax related announcements are made. So far as indirect taxes are concerned, there may not be much in the coming Budget as it is the GST Council who makes the final recommendations to be carried out by the Parliament or by way of delegated legislation. The report of the Comptroller and Auditor General of India (CAG) on performance of GST is likely to be tabled before Parliament in the ensuing winter session thereof, which begins on 11th December, 2018. The CAG is in process of auditing the functioning of GST since its inception on 1st July, 2017. It would include aspects like registration, refund, transition credit, input tax credit, e

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P or GSTIN of SEZ Unit with state as Other Country and shipping address and PIN code will be of the location (airport/shipping yard/border check post) from where the consignment is moving out from the country. For Import supply, the Bill From Party will be URP or GSTIN of SEZ Unit with state as Other Country and dispatching address and PIN code will be of the location (airport/shipping yard/border check post) from where the consignment is entered the country Enhancement in Bill To – Ship To transactions: EWB generation is now categorized to four types now Regular and Bill to Ship to, Bill from Dispatch from & combination of both. Facility of EWB generation through the Bulk Generation Tool has been enhanced. GSTN Portal Updates Provisional Assessment Following forms have been made available on GST Portal: Form GST ASMT 01 for provisional assessment by taxpayers who are not able to determine, either the value or tax rates, for the goods and /or services supplied by them. Form GST ASM

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art IV consists of summary of amendments/corrections relating to entries of previous FY. Part V requires other information such as particulars of demand and refunds & details relating to late fees payable and paid. Extension in due dates of returns CBIC has extended the last date for filing FORM GSTR-3B for the month of September, 2018 and October, 2018 for registered persons whose principal place of business is in Srikakulam district in the State of Andhra Pradesh to 30th November, 2018 and has also extended the last date for filing FORM GSTR-3B for the month of October, 2018 for registered persons whose principal place of business is in 11 districts of Tamil Nadu* to 20th December, 2018. CBIC has extended the due date for filing FORM GSTR-1 for the month of September, 2018 and October, 2018 for registered persons whose principal place of business is in Srikakulam district in the State of Andhra Pradesh to 30th November, 2018, and has also extended the due date for filing FORM GST

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Goods and Services Tax – GST – By: – Shilpi Jain – Dated:- 5-12-2018 – Under GST, any registered person would be eligible to claim ITC of taxes paid on goods or services procured, which are used or intended to be used in the course or furtherance of business and to the extent used for effecting taxable supplies, unless specifically restricted u/s 17(5) of the Act. Apart from the restrictions specified in section 17(5) of the Act, there could be situations where credit would become ineligible, like non-payment within 180 days in certain cases, non-receipt of proper tax invoice, etc. However, it can be said that the provisions are not as stringent as under the earlier laws where receipt of the capital goods in the premises/factory of the manufacturer was required. Further, under GST there could be some situations where, say, in spite of non-receipt of the goods in the premises of the recipient or non-payment of consideration to the supplier, credit would still be eligible. It is also to

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the Indian company, falls under the purview of input tax credit. Further, the goods are used by the Indian company for business purpose and for effecting taxable supplies as required by section 16(1) and 17(2) of the Act. Hence, prima facie ITC is eligible. Further, section 16(2) of the Act prescribes conditions for availing ITC, which are as follows: Condition Applicability in the instant case The registered person is in possession of a tax invoice or debit note issued by a supplier registered under this Act, or such other taxpaying documents as may be prescribed As per rule 36 of CGST Rules 2017, BoE is a prescribed document. The registered person has received the goods or services or both The Indian company has received the goods. The tax charged in respect of such supply has been actually paid to the Government, either in cash or through utilization of input tax credit admissible in respect of the said supply. It is only provided that tax has to be paid to the Government, i.e. it c

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pay the taxes to the supplier, but the same has to be paid to the Government directly. Thus, it can be said that this proviso is not applicable. Therefore, as all the conditions prescribed for availing ITC are satisfied and credit is not restricted under section 17(5) of the Act, it can be said that the credit of the taxes mentioned in the BoE will be eligible to the Indian company irrespective of the fact that no amount has been paid by such company to either the Government or to the supplier, in respect of the BoE. Case-2: A company has purchased machinery for which the supplier has given 3 years warranty. After 1 year, the machinery was damaged. Since, the machine was in the warranty period, the supplier replaced the machinery free of cost. However, while sending the spare parts for replacement, the supplier has discharged GST liability at its end by treating such replacement as supply in terms of entry 1 of Schedule I to the Act (permanent transfer of business assets on which ITC

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2018 (12) TMI 438 – CESTAT CHENNAI – TMI – CENVAT Credit – various input services – denial on account of nexus – Air Travel Agent / Rail travel Agent Services – Cable operator services – Convention service – Membership service – Erection commission/installation service – Civil works services/Repairs and maintenance – Designing and printing services – Cleaning services/Housekeeping – Sponsorship services – Finance Lease services – Accommodation services.
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Air travel agent / rail travel agency service – cable operator service – convention service – erection, commission and installation service – designing and printing service – cleaning service / housekeeping – sponsorship service – finance lease service – Held that:- The credit availed on air travel agent / rail travel agency service, cable operator service, convention service, erection, commission and installation service, designing and printing service, cleaning service / housekeeping, sponsorship service and finance lease s

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d for official purposes only – the accommodation service also requires to be remanded to the adjudicating authority – matter on remand.
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Appeal allowed in part and part matter on remand. – Appeal No. E/40788/2018 – FINAL ORDER No. 42996/2018 – Dated:- 5-12-2018 – Ms. Sulekha Beevi C.S., Member (Judicial) Ms. S. Sridevi, Advocate For the Appellant Shri L. Nandakumar, AC (AR) For the Respondent ORDER The issue involved in this appeal is with regard to the disallowance of Cenvat Credit on various services. 2. The Ld. Advocate, Ms. S. Sridevi appearing for the appellant submitted that the department has denied the credit alleging that it is not established that the services on which credit has been availed on the basis of ISD invoices have been used directly or indirectly in or in relation to manufacture and clearance of final products. She submitted that the details of the services availed and the nexus with the manufacturing activity alongwith the decisions which related to the said

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1) STR 443 (Tri Hyd) 5 Erection commission/installation service For installation of servers, generators, ups and other equipments GE India technology Centre-2014-TIOL-1931-CESTAT-BANG Orient Cement Ltd., – 2017 (51) STR 459 (Tri Hyd) 6 Civil works services/Repairs and maintenance Used for repairs/modernization and maintenance of office building Zydus Nycomed Healthcare 2013 (3) STR 197 (Tri Mum); 7 Designing and printing services Printing of tender docs/in house journals etc., Ultratech Cements Ltd., vs CCE., Jaipur – 2015 (40) STR 523 (Tri Del) 8 Cleaning services/Housekeeping For maintaining the office Xlinx India Tech – 2016 (44) STR 635 (Tri Hyd); CCE., vs Maruthi Suzuki – 2015 (38) STR 503 (Tri Del) 9 Sponsorship services Publication of booklet, banner and conductive events in relation to business development etc., Xlinx India Tech – 2016 (44) STR 635 (Tri Hyd.) 10 Finance Lease services / Purchase of computers/printers etc., on finance lease for execution of day to day routines.

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ssues were considered by the Tribunal in Xilinx India Tech. Services Pvt. Ltd. Vs CC., CE. & ST., Hyderabad-IV 2016 (44) S.T.R.635 (tri. – Hyd.). Following the said decision, I hold that the credit availed on the above services are legal and proper. The disallowance being unjustified, is set aside. 6. The Ld.Counsel for the appellant has produced the invoices relating to the services availed on membership fees. It is submitted by her that the appellant company had to take membership in Associated Chamber of Commerce and Industry of India. This is to enable the company to have connections with similar persons in the very same field of commerce and industry. This helps to develop the business and also to get updated with the trends in the industry and is therefore related to the activity of manufacture. It is not for personal membership in a Club. Similarly the appellant has taken membership in spending on conference of public enterprises. The Invoice is raised in the name of the com

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of various services. In para 8.4 of the Order in Original it is mentioned that works contract services as well as civil works services are disallowed. It is not possible to make out from the SCN or the order as to the services which come under works contract service and civil works services. This aspect needs to be reconsidered. Therefore this issue with respect to credit availed on works contract service / civil works service / repair and maintenance of xerox machine is remanded to the adjudicating authority. 8. So also the appellant contends that the accommodation services are availed for hotel accommodation for the employees who are on official duty. The appellant has to establish with necessary documents that the accommodation was availed for official purposes only. The Counsel for appellant submitted that the appellant would be able to furnish documents to establish that this was availed for official purposes only. For this reason, I hold that the accommodation service also requir

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2018 (12) TMI 708 – JHARKHAND HIGH COURT – TMI – Bail application – Input tax credit – Sections 132(1)(c) of the Central Goods and Services Act, 2017 – Held that:- Considering the period of custody, the petitioner is enlarged on bail – Accordingly, petitioner namely, Satya Prakash Singh @ S.P.Singh @ Satya Prakash is directed to be released on bail on furnishing bail bond of ₹ 50,000/- (fifty thousand) with two sureties of the like amount each to the satisfaction of Special Judge, Economic Offence, Jamshedpur.
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The petitioner is directed to cooperate with the Investigating Officer during investigation and till completion of the investigation, he must appear before the Investigating Authority once a fortnight. – B.A. No. 9077 of

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M/s. SWARNASHILPI Versus ASSISTANT STATE TAX OFFICER STATE GST DEPARTMENT, KERALA, THIRUVANANTHAPURAM, STATE OF KERALA REPRESENTED BY THE SECRETARY (TAXES) , THIRUVANANTHAPURAM, UNION OF INDIA REPRESENTED BY REVENUE SECRETARY, DEPARTMENT OFREVENUE, NEW DELHI AND THE DEPUTY COMMISSIONER (APPEALS) STATE GOODS AND SERVICE TAXES DEPARTMENT, 3RD FLOOR, TAX, THIRUVANANTHAPURAM – 2018 (12) TMI 839 – KERALA HIGH COURT – TMI – Validity of assessment order – condonation of delay in filing appeal – Held that:- In modification of the judgment dated 23rd October 2018 it is held that if the petitioner approaches the appellate authority-the fourth respondent-within two weeks from today, he will condone the delay that has occurred in the petitioner's pursu

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second appeals had started functioning. The first appellate authority is the Deputy Commissioner (Appeals). Therefore, this Court disposed of the writ petition on 23rd October 2018, in terms of an earlier judgment, dated 13th July 2018, in W.P.(C) No.23057 of 2018. 2. Now the petitioner has come up with this review petition. 3. According to the petitioner's counsel, as the petitioner bona fide pursued its remedy before this Court in W.P.(C) No.13090 of 2018, there occurred some delay, which would be fatal if the petitioner goes before the appellate authority. There ought to be an observation on that delay from this Court. According to him, the judgment in the earlier writ petition, based on which this writ petition was disposed of, cont

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2019 (2) TMI 64 – AUTHORITY FOR ADVANCE RULINGS, CHHATTISGARH – TMI – Rate of GST – Exempted supply or not – supply of services to Solid waste management, Garbage Collection, Disposal, Water Supply, Cleaning of Colony – Pure Services – N/N. 12/2017 dated 28th June, 2017 – Governmental Board – Authority issuing work order to the applicant i.e. Chhattisgarh Housing Board – public utility services – Held that:- Chhattisgarh Housing Board is a “Government Authority” as per No. 12/2017-State Tax (Rate) No. F-10- 43/2017/CT/V(80), Naya Raipur, Dated 28.06.2017 and as amended by Notification No. 31/2017-State Tax (Rate) No. F-10-82/2017/CT/V(146), Naya Raipur, Dated 13.10.2017 – Chhattisgarh Housing Board is a Government Authority fully owned by the State Government.
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Whether the nature of service supplies being provided by the applicant falls under 12th schedule, Article 243W of the Indian Constitution? – Held that:- The service supply to be provided by the applicant by their very natu

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, Garbage Collection, Disposal, Water Supply, Cleaning of Colony. Read:-Application dated 08-09-2018 from Shri Dhananjay Kumar Singh, H.N -13, Sanyasi Para, Khamtarai, Raipur, Chhattisgarh 492001 PROCEEDINGS [U/s 98 of the Chhattisgarh Goods & Services Tax Act, 2017 (hereinafter referred to as CGGST Act, 2017)] No. STC/AAR/06/2018 Raipur, Dated 05/12/2018 The applicant M/s. Dhananjay Kumar Singh HN 13, Sanyasi Para, Khamtarai, Raipur, Chhattisgarh GSTIN 22AVZPS5945E1ZZ has filed the application U/s 97 of the Chhattisgarh Goods & Services Tax Act, 2017 seeking advance ruling as regards the applicable GST Rate on supply of services to Solid waste management, Garbage Collection, Disposal, Water Supply, Cleaning of Colony classified by the applicant as exempted supply as per Notification No. 12/2017 dated 28th June, 2017 as updated and amended time to time, 2. Facts of the case:- I. M/s. Dhananjay Kumar Singh H.N 13, Sanyasi Para, Khamtarai, Raipur (C.G.) is a service provider who

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r supply operations, garbage collection door to door and disposal, cleaning of colony i.e. garden, street and open area, drainage system, sewerage cleaning of water tank (all UG Sump & Over head tank), cleaning of common area of residential area developed by Chhattisgarh Housing Board and not handed over to the local authority by Chhattisgarh Housing Board (CGHB) are exempt, under as per notification no. 12/2017 dated 28th June, 2017 as updated and amended time to time or not. 3. Contention of the Applicant: I. Chhattisgarh Housing Board (CGHB) is a public sector undertaking of the Government of Chhattisgarh. It is a board constituted under Chhattisgarh Housing Board Act, 1972 (No. 3 of 1973). After formation of the State of Chhattisgarh in November 2000, Housing Board was one among the several Boards and Corporations liquidated by the Government. Later, however, the Government in 2004 revised its earlier decision and formed Chhattisgarh Housing Board vide Notification No. 177/3236

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e the appellate authority held that the CGHB is covered under the definition of Government Authority for the purpose of Notification No. 25/2012 dated 20.06.2012. V. The Definition of Government authority under service tax regime is also produced below as defined in Notification No. 25/2012 dated 20.06.2012 and as amended from time to time. 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 Government, with 90% or more participation by way of equity or control, to carry out any function entrusted to a municipality under article 243W of the Constitution; VI. Applicant, engaged in the business of executing service contracts had been awarded a contract by the Chhattisgarh Housing Board (CGHB) for providing services in relation to Solid waste management, water supply operations, Garbage Collection door to door and disposal, cleaning of colony i.e. garden, street, and open area, drainage s

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ntion. They also furnished a written submission dated 30.10.2018, which has been taken on record. I. The applicant has quoted the judgment of M/s. The Nursery Men Co-operative Society, Lalbagh, Lalbagh Double Gate Road, Bengaluru, Karnataka in case no. KAR ADRG 18/2018, order dated 06-08-2018 = 2018 (9) TMI 1037 – AUTHORITY FOR ADVANCE RULINGS, KARNATAKA as pronounced by Authority for Advance Ruling, Karnataka, wherein it was ordered that the services of maintenance of parks provided by the society to the State Government, Central Government or a Local Authority (including BBMP) or a Government Authority, not involving transfer of property in goods either as component of a works contract or a composite supply is covered under entry No. 3 of the Notification No. 12/2017 Central Tax (Rate) dated 28-6-2017 and hence exempt. II. So the pure service contracts awarded by the Chhattisgarh Housing Board (CGHB) to them for providing services in relation to Solid waste management, water supply o

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service or other composite supplies involving supply of any goods) provided to the Central Government, State Government or Union territory or local authority or a Government by way of any activity in relation to any function entrusted to a Panchayat under Article 243G of the Constitution or in relation to any function entrusted to a Municipality under article 243W of the Constitution. Nil Nil 5.2 Applicant M/s. Dhananjay Kumar Singh has been awarded with the work order by Office of the Executive Engineer, Chhattisgarh Housing Board, 5.2. Applicant M/s. Dhananjay Kumar Singh has been awarded with the work order by Office of the Executive Engineer, Chhattisgarh Housing Board, Capital Project Division-I, Naya Raipur (C.G.) vide Order No. Work order agreement approved in ₹ 35, 11,000/- for colony maintenance work of C.G. Housing Board Colony Sector 29 Naya Raipur, Chhattisgarh. Nature of the work :- Colony maintenance work of C.G. Housing Board Colony Sector 29 Naya Raipur with solid

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i. Whether the Authority issuing work order to the applicant i.e. Chhattisgarh Housing Board is an established Governmental Board under State or Central Government or not; and ii. Whether the service supplies to be provided by the applicant falls under public utility services enumerated under 12th schedule, Article 243W of the Indian Constitution or not. 5.4 In this context, it is observed that Chhattisgarh Housing Board has been incorporated under Section 3 of the Chhattisgarh Housing Board Act, 1972; vide State Governments Notification No. 177/3236/32/2003, dated 12-02-2004. Section 4 of concerned Act provides for the Constitution of following post in the Board – Constitution of Board – The Board shall consist of the Chairman who shall be appointed by the State Government and the following other member, namely:- (a) Secretary to the Government of Madhya Pradesh in charge of each of the following departments or his nominee, namely : (i) Housing Department (ii) Finance Department (b)

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cipation by way of equity or control, to carry out an) function entrusted or a Municipality/ under article 243 W of the Constitution or to a Panchayat under article 243 G of the Constitution. Thus Chhattisgarh Housing Board is a Government Authority fully owned by the State Government. 5.6 Now for arriving at a decision as to whether the nature of service supplies being provided by the applicant falls under 12th schedule, Article 243W of the Indian Constitution, the following works enumerated under Article 243W needs consideration. Article 243W in the Constitution of India 1949 243W. Powers, authority and responsibilities of Municipalities, etc Subject to the provisions of this Constitution, the Legislature of a State may, by law, endow (a) the Municipalities with such powers and authority as may be necessary to enable them to function as institutions of self government and such law may contain provisions for the devolution of powers and responsibilities upon Municipalities, subject to

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otion of ecological aspects. 9. Safeguarding the interests of weaker sections of society, including the handicapped and mentally retarded. 10. Slum improvement and up gradation. 11. Urban poverty alleviation. 12. Provision of urban amenities and facilities such as parks, gardens, playgrounds. 13. Promotion of cultural, educational and aesthetic aspects. 14. Burials and burial grounds; cremations, cremation grounds and electric crematoriums, 15. Cattle pounds; prevention of cruelty to animals. 16. Vital statistics including registration of births and deaths. 17. Public amenities including street lighting, parking lots, bus stops and public conveniences. 18. Regulation of slaughter houses and tanneries. In the impugned matter in hand the applicant M/s. Dhananjay Kumar Singh has been awarded a work order by the office of the Executive Engineer, Chhattisgarh Housing Board, Capital Project Division-I, Naya Raipur (C.G.) vide Order No. having work order agreement approved for ₹ 35,11,0

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Board does not involve any transfer/sale of any goods. Services specified under serial no. 3, chapter 99 of Notification No. 12/2017-State Tax (Rate) No. F-10-43/2017/CT/V(80), Naya Raipur, Dated 28.06.2017 provides exemption, as under :- Pure services (excluding works contract service or other composite supplies involving supply of any goods) provided to the Central Government, State Government or Union territory or local authority or a Government by way of any activity in relation to any function entrusted to a Panchayat under Article 243G of the Constitution or in relation to any function entrusted to a Municipality under article 243W of the Constitution. On the above basis, we come to the considered conclusion that the said services provided by the applicant to Chhattisgarh Housing Board qualifies being placed under the category of services as stipulated under Notification No. 12/2017-State Tax (Rate) No. F-10-43/2017/CT/V(80), Naya Raipur, Dated 28.06.2017 and hence is exempt. In

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Goods and Services Tax – Started By: – Vijay Kumar – Dated:- 4-12-2018 Last Replied Date:- 7-12-2018 – Dear ExpertsOne of my client received an offer for creation/shooting of a animation film from a Canadian person. My client is registered GST Service Provider in India. Film will be shot/created in India but will be intended for the Canadian audience only. Canadian person has no Business connection in India and will pay in convertible foreign exchange. Do my client need to charge IGST on these

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Goods and Services Tax – Started By: – Kaustubh Karandikar – Dated:- 4-12-2018 Last Replied Date:- 9-12-2018 – XYZ (Maharashtra) had arranged a Customer meet in a Hotel in Bangalore towards sales promotion. The Hotel is ready to issue to separate bills viz. one for food and other for stay. The Hotel will be charging IGST in the invoice issued to XYZ in the name of XYZ, Maharashtra. Can XYZ take input tax credit against the bill for hotel stay? – Reply By DR.MARIAPPAN GOVINDARAJAN – The Reply = Since it is in furtherance of busines ITC is eligible. – Reply By Alkesh Jani – The Reply = Dear Sir, In this regards my point of view is that, the Hotel cannot charge IGST, for this purpose the definition of location of supplier give at Section 2(15

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GST – States – Processing of Applications for Cancellation of Registration submitted in FORM GST REG-16 – TMI Updates – Highlights

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GST – States – Clarifications of issues under GST related to casual taxable person and recovery of excess Input Tax Credit distributed by an Input Service distributor. – TMI Updates – Highlights

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Goods and Services Tax – Exemption from GST – Security Services rendered to Pimpri Chinch wad Municipal Corporation in relation to functions entrusted to Municipality under Article 243W of the Constit

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Goods and Services Tax – Levy of GST – export of service or not – intermediary services – The “Commission” received by the Applicant in convertible Foreign Exchange for rendering services as an “Inter

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Goods and Services Tax – Levy of GST – sale of goods outside India – The goods sold in the subject transaction are non-taxable supply as no tax is leviable on them till the time of customs clearance i

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Goods and Services Tax – Started By: – satbir singhwahi – Dated:- 4-12-2018 Last Replied Date:- 9-12-2018 – EXPORTING GARMENTS FIRM , PAYING OCEAN FREIGHT ON IMPORTS AND EXPORTS. PLS GUIDE THE APPLICABILITY OF RCM FOR JULY 2017 TO TILL DATE. – Reply By DR.MARIAPPAN GOVINDARAJAN – The Reply = Your query requires some more details. – Reply By satbir singhwahi – The Reply = SIRGARMENTS EXPORTING FIRM :1. PAYING OCEAN FREIGHT ON IMPORT OF CLOTH. WHETHER RCM IS APPLICABLE ON SUCH PAYMENT OF OCEAN FR

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Goods and Services Tax – GST – Dated:- 4-12-2018 – Total GST refunds to the tune of ₹ 91,149 crores have been disposed by CBIC and State authorities out of the total refund claims of ₹ 97,202 crores received so far. Thus, the disposal rate of 93.77 per cent has been achieved. The pending GST refund claims amounting to ₹ 6,053 crores are being expeditiously processed so as to provide relief to eligible claimants. Refund claims without any deficiency are being cleared expeditiously. In case of IGST refunds, about 95 % (Rs 48,455 crores) of the total IGST refund claims (Rs. 50,928 crore) transmitted to Customs from GSTN as on 28.11.2018 have already been disposed. The remaining claims amounting to ₹ 2,473 crores are he

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Goods and Services Tax – GST – By: – Sandeep Rawat – Dated:- 4-12-2018 – Appointment of the GST Auditors under section 35(5) and section 44(2) of the CGST Act read with Rule 80(3) of the CGST Rules [read with the corresponding provisions of the State / Union Territory Goods and Services Tax Acts] is to certify the Reconciliation Statement in GSTR 9-C prepared for the financial year ended 31st March 2018. In this context, clear responsibilities play a very important role to implement the bonafide purpose of the GST audit. I have prepared the scope of the management as well as GST auditor responsibilities in GST audit under the GST laws. Management Responsibilities Compliance with GST laws and preparation of GSTR 9C in compliance of those laws The Management is responsible for compliances with the GST laws, comprising the Union Territory Goods and Services Tax / Central Goods and Services Tax / State Goods and Services Tax Act, 2017* and Integrated Goods and Services Tax Act, 2017 and t

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lly accepted in India and in line with the requirements under the GST laws and assessing the accounting principles used and significant estimates made by the Management in the presentation of financial statements The audit will be conducted in accordance with the auditing standards generally accepted in India and in line with the requirements under the GST laws. Those standards require that GST auditor plan and perform the audit to obtain reasonable assurance as to whether the relevant GSTR 9C is free of material mis-statements. An audit includes examination on a test basis, using the concept of materiality, evidence supporting the amounts and disclosures in GSTR 9C. The audit may also include assessing the accounting principles used and significant estimates made by the Management in the presentation of financial statements. Consider- internal control. GST auditor will consider, solely for the purpose of planning of the audit and determining the nature, timing, and extent of the audit

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as may be applicable and the effectiveness of internal control over financial reporting. Auditing standards generally accepted in India also require that, at the conclusion of the audit, GST auditor obtain representation letters from certain members of management about these matters. The responses to those inquiries, the written representations, and the results of the audit tests comprise the evidential matter GST auditor will rely upon in forming an opinion on the GSTR 9C or other reports. Owing to the importance of Management s representations to an effective audit and review, the enterprise agrees liability and costs relating to the services under the letter attributable to any misrepresentations by Management. Management is responsible for providing him with all financial records and related information / documents on a timely basis, and its failure to do so may cause him to delay the report, modify the procedures, or even terminate the engagement. Working papers prepared in conjun

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Goods and Services Tax – Started By: – Shyam Agarwal – Dated:- 4-12-2018 Last Replied Date:- 5-12-2018 – Sir, Mr.A purchased a Motor Car as a business assets in GST Era. But as ITC is blocked,He has not taken the ITC of the same. Now, He wants to Gift the same to his relative WITHOUT CONSIDERATION. 1.Whether GST is payable on Gift of such car as clause 4(a) of Schedule-II says about applicability of GST on business asset even without Consideration, even with or without ITC? 2.If yes, How GST sh

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2018 (12) TMI 341 – CESTAT NEW DELHI – TMI – Refund of cenvat credit taken on the inputs services – inputs services used in the manufacture of the finished goods which were subsequently exported – appellant is denied eligibility to avail cenvat credit on input services due to being exclusively used for exempted goods as per Rule 6(1) of CCR, 2004 and refund is also denied – refund also denied on the ground of non-registration of manufacture and also on the ground of non-distribution of credit – Held that:- Any manufacturer who clears a final product or an intermediary product for export is entitled for credit subject to above conditions. The appellant in the present case admittedly is engaged in clearing excisable goods however the controversy is whether the goods i.e. gems and jewellery were fully exempted or not.
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Under Central Excise, “exemption” means exemption by Notification No. under Section 5A of Central Excise Act, 1944 thus goods exported under bonds are not exempted f

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cope of “exempted goods” – Rule 7(b) of CCR, 2004 to reject the refund is not applicable.
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Refund allowed – appeal allowed – decided in favor of appellant. – Service Tax Appeal Nos. ST/52143, 52144 & 52145/2018 [SM] – FINAL ORDER NO. 53352-53354/2018 – Dated:- 4-12-2018 – MRS. RACHNA GUPTA, MEMBER (JUDICIAL) Present for the Appellant: Mr. Sanjiv Agarwal & Mr. MB Maheshwari, Advocates Present for the Respondent: Mr. P.R. Gupta, DR ORDER PER: RACHNA GUPTA Three of the above mentioned Appeals are disposed of vide this Order as the Commissioner (Appeals) has passed a common Order with respect to three Show Cause Notices in three of these Appeals. Common Order dated 16.02.2018 has been challenged before this Tribunal. 2. Relevant facts for the purpose are: The appellant herein is engaged in manufacturing and export of gems and jewellery. He had filed a refund claim under Rule 5 of Cenvat Credit Rules, 2000 and Notification No. 27/2012-CE dated 18.06.2012 in respect of the cenvat c

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tices are as follows:- Appeal No. SCN Period Refund amount & date Ex-parte OIO No./ Date Common OIA No./ Date ST/52143/2018 C.No. V(71)R-5/Ref/246/2015/5603 dated 10.12.2015 July 2014 to September 2014 Rs.5,14,709/- 30.09.2015 380/Ref./2015 dated 31.12.2015 37 to 39 (NG) ST/JPR/2018 dated 16.02.2018 ST/52144/2018 C.No. V(71)R-5/Ref/261/2015/5601 dated 10.12.2015 October 2014 to December 2014 Rs.4,97,807/- 08/Ref./2016 dated 05.01.2016 37 to 39 (NG) ST/JPR/2018 dated 16.02.2018 ST/52145/2018 C.No. V(71)R-5/Ref/307/2015/5827 dated 21.12.2015 January 2015 to March 2015 Rs.1,11,374/- 09/Ref./2016 dated 11.01.2016 37 to 39 (NG) ST/JPR/2018 dated 16.02.2018 3. I have heard Mr. Himanshu Bansal, Ld. Advocate for the appellant and Mr. P.R. Gupta, Ld. DR for the Department. 4. It is submitted on behalf of the appellant that the refund claim was filed of accumulated cenvat on inputs/ input services used for export under Rule 5 of CCR, 2004 read with Notification No. 27 dated 18.06.2012. The D

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ods of the appellants may be excluded from the scope of exempted goods and may be made eligible to the refund claim under Rule 5 read with Rule 7 of CCr, 2004. 4.2 Ld. Counsel has also mentioned that as per the definition of exempted goods in Rule 2(d) of CCR, 2004 those goods which are under entry no. 67 and 128 of Notification No. 12 dated 17.03.2012 (as has been relied upon by the Commissioner(Appeals) by the Adjudicating Authorities below) but the goods of the appellant fall under none of those categories for this reason also the goods cannot be held as exempted goods and the claim cannot be rejected in accordance thereof. The Order under challenge is therefore prayed to be set aside; Appeal is prayed to be allowed. 5. Ld. DR on the other hand has justified the order and prayed for the dismissal of Appeal. 6. After hearing both the parities my observations and opinion is as follows:- The appellant had filed the refund claim under Rule 5 of Cenvat Credit Rules, 2004 and Notification

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rs a final product or an intermediary product for export is entitled for credit subject to above conditions. The appellant in the present case admittedly is engaged in clearing excisable goods however the controversy is whether the goods i.e. gems and jewellery were fully exempted or not. The appellant has drawn attention to the Ministry of Law advice dated 29.10.1974 as circulated vide CBEC Circular No. 278/112/96-CX dated 11.12.1996 which reads as follows:- Under Central Excise, exemption means exemption by Notification No. under Section 5A of Central Excise Act, 1944 thus goods exported under bonds are not exempted from duty. A conjoint reading of this Circular with the above requirements of Rule 5 makes it clear that a manufacturer who clears a final product or an intermediate product for export without payment of duty under bond or letter of undertaking which is exported without payment of service tax shall not be an exempted goods and as such shall be allowed refund of cenvat cre

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