Author: admin_gst

2018 (12) TMI 345 – DELHI HIGH COURT – 2019 (20) G. S. T. L. J143 (Del.) – Due date of payment of tax under GST – last date off filing of return – Requirement of filing of GSTR-3 return in addition to GSTR-3B return – Validity of Circular No.07/07/2017-GST File No.349/164/2017-GST dated 01.09.2017 – Vires of Section 39 of the Central Goods & Services Tax Act, 2017 and Rule 61(5) of the Central Goods and Services Tax Rules, 2017 – Respondent has drawn our attention to the counter affidavit filed on behalf of the Commissioner of Central Tax, GST, Delhi-East, wherein it has been stated that the return filed in Form GSTR-3B is not in addition to the return in Form GSTR-3 – Counsel for the respondents has stated that notifications have been iss

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R-2/GNCTD O R D E R M/s. Anil Goel & Associates, a firm of Chartered Accountants has filed the present writ petition praying for multiple reliefs; but during the course of arguments, learned counsel for the petitioner has confined his challenge to the validity of Circular No.07/07/2017-GST File No.349/164/2017-GST dated 01.09.2017 as being violative of Section 39 of the Central Goods & Services Tax Act, 2017 ( Act for short); and Rule 61(5) of the Central Goods and Services Tax Rules, 2017 ( Rules for short). Learned counsel for the respondent has drawn our attention to the counter affidavit filed on behalf of the Commissioner of Central Tax, GST, Delhi-East, wherein it has been stated that the return filed in Form GSTR-3B is not in

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mmissioner, as per which the assessee are required to file returns in Form GSTR-3B till 31st March, 2019. Till then, returns are not required to be filled under Form GSTR-3. Petitioner however submits that vide Notification No.23 of 2017-Central Tax dated 17.08.2017 the assessee were required to compute and deposit tax for the month of July, 2017 in cash as per Rule 87 of the Rules on or before 20.08.2017. The due date for filing of the return was 28.08.2017. This stipulation it is submitted is contrary to requirement of sub-section 7 of Section 39, which requires that every registered person should pay to the Government the tax due as per the return no later than the last date on which he is required to furnish such return. According to th

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2018 (12) TMI 1158 – AUTHORITY FOR ADVANCE RULINGS, CHHATTISGARH – TMI – Maintainability of Advance Ruling Application – Rate of GST – Dietary Services to CIMS Hospital – Held that:- The application is not in the prescribed format as specified GST ARA-01 under section 97(1) of Chhattisgarh State GST Act, 2017 and the applicant has also not deposited the full fee of ₹ 10000/- for advance ruling i.e., ₹ 5000/- for SGST and ₹ 5000/- for CGST as specified in circular no 25/25/2017-GST issued by the Central board of Custom and Indirect tax board on 21.12.2017 – Application is hereby REJECTED as it has not been filed as per the act and rules of State GST act and/or Central GST act. – STC/AAR/07/2018 Dated:- 26-11-2018 – SHRI S

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es to CIMS Hospital. The application is not in the prescribed format as specified GST ARA-01 under section 97(1) of Chhattisgarh State GST Act, 2017 and the applicant has also not deposited the full fee of ₹ 10000/- for advance ruling ie ₹ 5000/- for SGST and ₹ 5000/- for CGST as specified in circular no 25/25/2017-GST issued by the Central board of Custom and Indirect tax board on 21.12.2017. The applicant has already been reminded twice vide our letter no. dated 20.09.2018 & Reminder letter no. dated 16.10.2018. The Application is hereby REJECTED as it has not been filed as per the act and rules of State GST act and/or Central GST act. – Case laws – Decisions – Judgements – Orders – Tax Management India – taxmanage

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Customs – PUBLIC NOTICE No. 05/2018-Customs – Dated:- 26-11-2018 – OFFICE OF THE COMMISSIONER OF GOODS & SERVICE TAX (GST) N-5, TOWN CENTRE, CIDCO, AURANGABAD – 431003 F. No. VGN (30) 06/T.N/18-19 Date: 26.11.2018 PUBLIC NOTICE No. 05/2018-Customs Sub :- reg. Attention is invited to the Circular No. 69 / 43 / 2018-GST dated 26-10-2018 issued by the Commissioner (CST), Government of India, Ministry of Finance, Department of

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Goods and Services Tax – Started By: – Kaustubh Karandikar – Dated:- 25-11-2018 Last Replied Date:- 3-12-2018 – XYZ is receiving from PQR amount towards late delivery charges which will fall under the category of agreeing to the obligation to refrain from an act, or to tolerate an act or a situation, or to do an act and therefore XYZ will be liable to pay GST on the amount received. In this example, recipient of service is XYZ or PQR? – Reply By KASTURI SETHI – The Reply = Tolerating, refraining from, agreeing to etc.is a service under GST. Who is tolerating ? Who is refraining from ? Who is agreeing to ? . XYZ is tolerating, refraining from, agreeing to by way of imposing late delivery charges upon PQR . So PQR is service receiver. – Repl

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recipient (PQR) and one booking income (XYZ) shall always be supplier. As per section 15(2)(d) value of supply include interest or late fee or penalty for delayed payment of any consideration for any supply. Therefore the POS for late payment charges shall be equivalent to original supply. – Reply By Alkesh Jani – The Reply = Dear Kaustubh Karandikar, In this regards, first of all it is to be decided that, late delivery charges received by the XYZ, is in relation to any Supply i.e. Goods or Services?. If this is the case, than PQR has already raised an Invoice and XYZ will deduct the amount of late delivery charges, this amount is to be included for valuation purpose, as per above mentioned section. but as Invoice of the same amount is rais

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Goods and Services Tax – Started By: – Prakash Gupta – Dated:- 24-11-2018 Last Replied Date:- 27-11-2018 – Dear Expert, Need your view on below mentioned issues: Facts of the case Say a Company namely ABC forgot to mention a supply as well as GST liability thereon in form GSTR-3B and GSTR-1 in the month of Aug 2017, the GST liability was ₹ 100,000/-. The Company has noticed this mistake only in the month of the November 2018, while finalizing the annual return for the FY 2017-18. Further, The Company has always input tax credit balance exceeding ₹ 150,000/- during the period July 2017 to November 2018. Query 1. Now how to rectify this mistake? 2. Is there is any interest liability on the Company? Even, after considering the fac

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Prakash Gupta – The Reply = Kasturi Sir, Thanks for your reply. But please further light on liability of Interest question, keeping the fact that assessee has already had excess credit on supply GST in books of the accounts as well as on portal from the date of its liability , even till date it has not been utilized. There was a bonafide mistake by the accountant while filling GSTR-3B and GSTR-1 return. However, due to mistakes of the assessee , there was no loss to revenue. If my logic is not correct, please quote provision of the GST law, which say that set off liability on portal is GST is payment. – Reply By KASTURI SETHI – The Reply = Dear Querist, (1) Read Section 50(3) of CGST Act, 2017. (2) You have CLAIMED ITC which was not admissi

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Goods and Services Tax – GST – By: – Dr. Sanjiv Agarwal – Dated:- 24-11-2018 – Goods and Services Tax (GST), introduced from July 1, 2017 is seventeen months old now but has resulted in operational and implementation disruptions affecting all stakeholders. GST law, as drafted and legislated, is not free from the interpretational hassles. GST Council is however, making regular changes to fix the anomalies and hardships faced by taxpayers. 30 meetings of GST Council have been held till 31st October, 2018. Taxpayers have already challenged various provisions of GST laws and rules framed thereunder with our 200 writs being filed in different courts. High courts and Supreme court have taken a liberal stand so far in view of the fact that law is new and is yet evolving. However, CBIC may move to Supreme court where the verdict is against the Government. In recent past, CBIC had issued directions to be officers to defend the writs. Further, we have now rulings from Authority for Advance Ruli

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ere covered by invoices for supply to consignees of Telangana and Dehradun. The aforesaid consignments were loaded from the premises of the consignor in small vehicle and were to be brought to transshipment branch situated at Greater Noida, UP where the goods were to be reloaded in two different trucks for transportation for Telangana and Dehradun. The distance between the business place of consignor and the Greater Noida Branch of transporter was approximately 25-30 Km. The petitioner had downloaded two national e-way bills, one for Telangana and another for Dehradun and the consignor had duly filled the part of the aforesaid national e-way bill which contains the details of consignor as well as consignee and further the details and description of goods to be supplied. 'Part B' which pertains to details of truck/vehicle number was left blank to be filled by the transporter when the goods would be reloaded in respective trucks at transshipment branch at Greater Noida for furthe

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namely, Telangana and Dehradun. Until and unless the goods/vehicle reached at the place of transport company from where it was required to be transported to its ultimate destination, no one can fill up the details of vehicle when admittedly the details are not known or available to the consignor or the driver. In view of the aforesaid facts and circumstances of the case, the order of seizure passed under section 129(1) was held liable to be set aside and the authorities were to be ordered for release of the goods and the vehicle upon furnishing of the indemnity bond to the extent of proposed tax and penalty. In S.B.G.C Logistics v State of U.P. 2018 (5) TMI 697 – ALLAHABAD HIGH COURT, where the assessee, a transporter, was transporting the goods of its customers from New Delhi to Assam and Nagaland. The Competent Authority of the U.P. Goods and Services Tax Department had seized the above goods as well as the vehicle at U.P. Border, Ghaziabad on the ground that the goods were not acco

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ication No. 12 of 2018, dated 7-3-2018 and the Clarification dated 31-3-2018, the seized goods in question as well as the vehicle were ordered to be released forthwith. It was held that in the instant case, the seizure proceedings were carried out illegally and the same are wholly without jurisdiction as also against the Government Notification and Central Government decision. Hence, both the seizure order and consequential penalty proceedings under section 129(3) were set aside. In VSL Alloys (India) (P.) Ltd. v State of U.P. (2018) 5 TMI 455 (Allahabad); where the petitioner is a private limited company and is engaged in manufacture and supply as well as export of industrial SS Tube, fittings and pipe fittings etc. The petitioner is registered under the provision of GST. The movement involved inter-State movement of goods and the validity of e-way bill showed that it is not valid for movement is pat B is not entered. The goods, namely Stainless Steel welded pipes which were found loa

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2018 (11) TMI 1585 – BOMBAY HIGH COURT – TMI – At the request of the learned counsel appearing for the Applicant, stand over to 10th December, 2018 – No interim relief is granted. – Anticipatory Bail Application No. 2333 Of 2018 Dated:- 24-11-2018 – A. S. Gadkari, J. Mr. Ritesh Ratnam for the Applicant. Mr. Mr. Bhyam Walve I/by Ram Ochani And Amit Palkar APP, for the Respondent-State. P.C.:- At the request of the learned counsel appearing for the Applicant, stand over to 10th December, 2018. 2

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Goods and Services Tax – Started By: – Charan N – Dated:- 23-11-2018 Last Replied Date:- 30-11-2018 – Der Sir/Madam,I applied revocation of cancellation application for one my client and the same is showing under pending for processing and allotted to Center. We contacted concerned Jurisdictional officer and he is saying that he is not getting anything regarding revocation to process the application. I want to know whether revocation process started and any applications approved or processed by the department.I am in very serious situation and want to revoke the application ASAPThanking you in advance – Reply By KASTURI SETHI – The Reply = First action is to be taken by Jurisdictional GST Officer (Range Officer or Divisional Officer) . On

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rd's instruction. Extract of Board's Flyer no.1 dated 1.1.18Cancellation of RegistrationThe GST law provides for two scenarios where cancellation of registration can take place; the one when the taxable person no more requires it (voluntary cancellation), and another when the proper officer considers the registration liable for cancellation in view of certain specified defaults (Suo motu cancellation) like when the registrant is not doing business from the registered place of business or if he issues tax invoice without making the supply of goods or services. The taxable person desirous of cancellation of Registration will apply on the common portal within 30 days of event warranting cancellation. He will also declare in the applica

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Goods and Services Tax – Detention of goods alongwith vehicle – Since the requirement of the E-way bill was not applicable for the petitioner during the above period, the seizure itself is bad in law. – TMI Updates – Highlights

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Goods and Services Tax – Started By: – DIVYAM JAIN – Dated:- 23-11-2018 Last Replied Date:- 1-1-2019 – What are the provisions & rate applicable for hotel & Resturant industry Wharther a Service Reciepient can take credit for amount paid to hotels Who can charge tax@5% and who can charge @18% – Reply By HIREGANGE& ASSOCIATES – The Reply = 1. Rate applicable for standalone Restaurant service is 5% ; 2. Restaurant service located in a Hotel having the room charges <7500 per unit per da

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Goods and Services Tax – Started By: – Shyam Agarwal – Dated:- 23-11-2018 Last Replied Date:- 24-11-2018 – Sir, whether Combined contract for Supply and Installation of CCTV Cameras and Fire Extinguishers in Residential building is treated as works contract under GST or supply of goods? – Reply By YAGAY andSUN – The Reply = Supply and installation of CCTV would fall under the category works contract as without installation and link it with control room it would not work whereas there is no need to install the fire extinguishers as it may work without such installation hence would be treated as supply of goods. – Reply By Shyam Agarwal – The Reply = Thanks for sharing your valuable suggestions but sir Fire Extinguishers are also installed a

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Goods and Services Tax – GST – By: – Sanjeev Singhal – Dated:- 23-11-2018 Last Replied Date:- 16-12-2018 – First of All housing societies means unincorporated body or Non -Profit entity registered under any law for the time being in force whether it is cooperative society or society register under Societies Act. Simply put these are a collective body of persons, who stay in a residential society. As a collective body, they would be supplying certain services to its members, be it collecting statutory dues from its members and remitting to statutory authorities, maintenance of the building, security etc. A Society is akin to a club, which is composed of its members. So, can a service provided by a Housing Society to its members be treated as service provided by one person to another. The answer is yes. The following extracts of the GST law will make the position clear. Section- 9 of the CGST Act says that GST is applicable on supply of Goods and Services . Section -7 of the CGST Act na

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ncement or closure of business; (e) provision by a club, association, society, or any such body (for a subscription or any other consideration) of the facilities or benefits to its members; (f) admission, for a consideration, of persons to any premises; (g) services supplied by a person as the holder of an office which has been accepted by him in the course or furtherance of his trade, profession or vocation; (h) services provided by a race club by way of totalisator or a licence to book maker in such club; and (i) any activity or transaction undertaken by the Central Government, a State Government or any local authority in which they are engaged as public authorities. Thus, as per section 2(17)(e) of the CGST Act, 2017 provision by a club, association, society, or any such body (for a subscription or any other consideration) of the facilities or benefits to its members is deemed to be a business. The activities of the housing society would thus attract the levy of GST and the housing

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its members, GST shall be charged on ₹ 1000 only. Therefore charges collected by the society on account of property tax, electricity charges shall be excluded while calculating the limit of ₹ 7500. A per the TRU F.N. 332/04/2017 issued by the Ministry of Finance, the following FAQ has been released . Subject: FAQs on levy of GST on supply of services to the Co-operative society- reg S. No. Question Answer 1. The society collects the following charges from the members on quarterly basis as follows: 1.Property Tax-actual as per Municipal Corporation of Greater Mumbai (MCGM) 2.Water Tax- Municipal Corporation of Greater Mumbai (MCGM) 3.Non- Agricultural Tax- Maharashtra State Government 4.Electricity charges 5.Sinking Fund- mandatory under the Bye-laws of the Co-operative Societies 6.Repairs & maintenance fund 7.Car parking Charges 8.Non Occupancy Charges 9.Simple interest for late payment. From the tax/ charge as listed above, on which GST is not applicable. 1. Services p

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no GST is applicable. Maintenance charges means only maintenance or collection of all charges This is applicable to only the reimbursements of charges or share of up to an amount of five thousand rupees per month per member for sourcing of goods or services from a third person for the common use of its members. Here, charges mean the indivisual contributions made by members of the society to avail services or goods by the society from a third party for common use. [*Entry 77(c) of notification no 12/2017 Central Tax (Rate) dated 28.6.2017 refers] 3. Monthly maintenance (all above charges) are below ₹ 5000/-but yearly Reimbursement of charges or share of contribution up to an amount of ₹ 5000/- per *Amount of ₹ 5000 shall be read as ₹ 7500 amended since 25.01.2018. All Housing Societies Falls under the Parameter of Notification No. 12 dated 28.06.2017. – > Answer is No Reason of the above answer is as follows: If the turnover of housing society is above 20 la

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Goods and Services Tax – GST – By: – Dr. Sanjiv Agarwal – Dated:- 23-11-2018 – Section 171 of GST law is the most powerful provision to check excessive profiteering resorted to by businesses owing to tax efficiency accruing because of goods and services tax (GST). The National Anti-profiteering Authority (NAA) entrusted with disposing of such cases including implementation of provision and monitoring has already decided over a dozen of anti-profiteering complaints and ruled, both for and against complaints. The law of positive evidence has been applied by NAA in all such cases and where there was no evidence of anti-profiteering stance or it could not be proved in view of lack of evidence, such complaints were decided in favour of business entity or against the complainant. In other words, complainant has to provide substantial evidence to prove that the accused business entity has indulged in anti-profiteering or the business entity against whom complaint has been made has to prove b

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for want of credible evidence of profiteering against a specific supplier of KFC and accordingly no violation of provisions of section 171 could be established. It was alleged that company had not passed on the benefit of reduction of tax from 18% to 5% to its customers. He had also alleged that it was supplying him Burger @ ₹ 32/- per unit and after adding 18% GST, he was paying about ₹ 40/- per unit before the tax was reduced w.e.f. 15.11.2017, whereas he was purchasing the above product @ ₹ 42/- per unit after the reduction in the rate of tax and therefore, the company was illegally profiteering by appropriating the amount of reduction of tax by fleecing the poor customers as he was denying them the benefit of reduction and therefore action should be taken against him. However, on being asked by DGAP to provide the pre and post GST invoices of the products sold and other details like name and address of outlet from where supplies were made so that matter could be

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ssed. Amway India Case In another complaint in the matter of Amway India, i.e. DGAP v. Amway India Enterprises Pvt. Ltd., National Anti-profiteering Authority vide its Order dated 29th October, 2018 and reported in 2018 (10) TMI 1614 – NATIONAL ANTI-PROFITEERING AUTHORITY has come to the conclusion that application filed by applicant requesting for action against Amway for alleged violation of provisions of section 171 on ground that it had not passed on benefit of reduction in GST rates from 28 per cent to 18 per cent on selected items to its customers/Amway Business Owners, would not be maintainable as there was no specific evidence of profiteering against respondent. In absence of description of any product, name of supplier and any specific evidence of profiteering by respondent no further investigation could be conducted. Hence, no violation of provisions of section 171 had been found. The complaint was received by email without mentioning name or contact address stating that M/s

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GST – States – 8/3/2018-LA – Dated:- 23-11-2018 – GOVERNMENT OF GOA Department of Law & Judiciary Legal Affairs Division __ Notification 8/3/2018-LA The Goa Goods and Services Tax (Amendment) Ordinance, 2018 (Ordinance No. 3 of 2018), which has been promulgated by the Governor of Goa on 20-11-2018, is hereby published for general information of the public. Sharad G. Marathe, Additional Secretary (Law). Porvorim, 23rd November, 2018. The Goa Goods and Services Tax (Amendment) Ordinance, 2018 (Ordinance No. 3 of 2018) Promulgated by the Governor of Goa in the Sixty-ninth Year of the Republic of India. An Ordinance to amend the Goa Goods and Services Tax Act, 2017 (Goa Act 4 of 2017). Whereas, the Legislative Assembly of Goa is not in session and the Governor of Goa is satisfied that circumstances exist which render it necessary for her to take immediate action. Now, therefore, in exercise of the powers conferred by clause (1) of article 213 of the Constitution of India, the Governo

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bstituted; (ii) in clause (16), for the words Central Board of Excise and Customs , the words Central Board of Indirect Taxes and Customs shall be substituted; (iii) in clause (17), for sub-clause (h), the following sub-clause shall be substituted, namely:- (h) activities of a race club including by way of totalisator or a license to bookmaker or activities of a licensed bookmaker in such club; and ; (iv) clause (18) shall be omitted; (v) in clause (35), for the expression clause (c) , the expression clause (b) shall be substituted; (vi) in clause (69), in sub-clause (f), after the word and figures article 371 , the expression and article 371J shall be inserted; (vii) in clause (102), the following Explanation shall be inserted, namely:- Explanation.- For the removal of doubts, it is hereby clarified that the expression services includes facilitating or arranging transactions in securities; . 3. Amendment of section 7.- In section 7 of the principal Act, with effect from the 1st day of

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ly:- (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 supply of goods or services or both. . 5. Amendment of section 10.- In section 10 of the principal Act,- (i) in sub-section (1),- (a) for the expression in lieu of the tax payable by him, an amount calculated at such rate , the expression in lieu of the tax payable by him under sub-section (1) of section 9, an amount of tax calculated at such rate shall be substituted; (b) in the proviso, for the expression one crore rupees, as may be recommended by the Council. , the expression one crore and fifty lakh rupees, as

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principal Act, in sub-section (2),- (i) in clause (b), for the Explanation, the following Explanation shall be substituted, namely:- Explanation.- For the purposes of this clause, it shall be deemed that the registered person has received the goods or, as the case may be, services- (i) where the goods are delivered by the supplier to a recipient or any other person on the direction of such registered person, whether acting as an agent or otherwise, before or during movement of goods, either by way of transfer of documents of title to goods or otherwise; (ii) where the services are provided by the supplier to any person on the direction of and on account of such registered person. ; (ii) in clause (c), for the word and figures section 41 , the words, figures and letter section 41 or section 43A shall be substituted. 9. Amendment of section 17.- In section 17 of the principal Act,- (i) in sub-section (3), the following Explanation shall be inserted, namely:- Explanation.- For the purpose

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(ab) services of general insurance, servicing, repair and maintenance in so far as they relate to motor vehicles, vessels or aircraft referred to in clause (a) or clause (aa): Provided that the input tax credit in respect of such services shall be available- (i) where the motor vehicles, vessels or aircraft referred to in clause (a) or clause (aa) are used for the purposes specified therein; (ii) 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; (b) the following supply of goods or services or both,- (i) food and beverages, outdoor catering, beauty treatment, health services, cosmetic and plastic surgery, leasing, renting or hiring of motor vehicles, vessels or aircraft referred to in clause (a) or clause (aa) except when used for the purposes specified therein, life insurance and health insurance: Pro

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on (1), after the proviso, the following proviso shall be inserted, namely:- Provided further that where such person makes taxable supplies of goods or services or both from a special category State in respect of which the Central Government has enhanced the aggregate turnover referred to in the first proviso, he shall be liable to be registered if his aggregate turnover in a financial year exceeds the amount equivalent to such enhanced turnover. ; (ii) in the Explanation, in clause (iii), after the word Constitution , the expression except the State of Jammu and Kashmir and States of Arunachal Pradesh, Assam, Himachal Pradesh, Meghalaya, Sikkim and Uttarakhand shall be inserted. . 12. Amendment of section 24.- In section 24 of the principal Act, in clause (x), after the words commerce operator , the words and figures who is required to collect tax at source under section 52 shall be inserted. 13. Amendment of section 25.- In section 25 of the principal Act,- (i) in sub-section (1), af

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ency of the proceedings relating to cancellation of registration filed by the registered person, the registration may be suspended for such period and in such manner as may be prescribed. ; (iii) in sub-section (2), after the proviso, the following proviso shall be inserted, namely:- Provided further that during pendency of the proceedings relating to cancellation of registration, the proper officer may suspend the registration for such period and in such manner as may be prescribed. . 15. Amendment of section 34.- In section 34 of the principal Act,- (i) in sub-section (1),- (a) for the words Where a tax invoice has , the words Where one or more tax invoices have shall be substituted; (b) for the words a credit note , the words one or more credit notes for supplies made in a financial year shall be substituted; (ii) in sub-section (3),- (a) for the words Where a tax invoice has , the words Where one or more tax invoices have shall be substituted; (b) for the words a debit note , the w

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inserted, namely:- Provided that the Government may, on the recommendations of the Council, notify certain classes of registered persons who shall furnish return for every quarter or part thereof, subject to such conditions and safeguards as may be specified therein. ; (ii) in sub-section (7), the following proviso shall be inserted, namely:- Provided that the Government may, on the recommendations of the Council, notify certain classes of registered persons who shall pay to the Government the tax due or part thereof as per the return on or before the last date on which he is required to furnish such return, subject to such conditions and safeguards as may be specified therein. ; (iii) in sub-section (9),- (a) for the words in the return to be furnished for the month or quarter during which such omission or incorrect particulars are noticed , the words in such form and manner as may be prescribed shall be substituted; (b) in the proviso, for the words the end of the financial year , th

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

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following proviso shall be inserted, namely:- Provided that the input tax credit on account of State tax shall be utilized 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; ; (b) in clause (d), the following proviso shall be inserted, namely:- Provided that the input tax credit on account of Union territory tax shall be utilized 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; . 21. Insertion of new section 49A and section 49B.- After section 49 of the principal Act, the following sections shall be inserted, namely:- 49A. Utilisation of input tax credit subject to certain conditions.- Notwithstanding anything contained in section 49, the input tax credit on account of State tax shall be utilized towards payment of integrated tax or State tax, as the case may be, only after the i

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services used in making such exports; ; (ii) in the Explanation, in clause (2),- (a) in sub-clause (c), in item (i), after the words foreign exchange , the words or in Indian rupees wherever permitted by the Reserve Bank of India shall be inserted; (b) for sub-clause (e), the following sub-clause shall be substituted, namely:- (e) in the case of refund of unutilised input tax credit under clause (ii) of the first proviso to sub-section (3), the due date for furnishing of return under section 39 for the period in which such claim for refund arises; . 24. Amendment of section 79.- In section 79 of the principal Act, after sub-section (4), the following Explanation shall be inserted, namely:- Explanation.- For the purposes of this section, the word person shall include distinct persons as referred to in sub-section (4) or, as the case may be, sub-section (5) of section 25. . 25. Amendment of section 107.- In section 107 of the principal Act, in sub-section (6) in clause (b), after the exp

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he expression Act 16 of 1969 , the expression Act 7 of 1969 shall be substituted. 30. Amendment of Schedule I.- In Schedule I of the principal Act, in paragraph 4, the word taxable shall be omitted. 31. Amendment of Schedule II.- In Schedule II of the principal Act, in the heading, after the word ACTIVITIES , the words OR TRANSACTIONS shall be inserted and shall be deemed to have been inserted with effect from the 1st day of July, 2017. 32. Amendment of Schedule III.- In Schedule III of the principal Act,- (i) after paragraph 6, the following paragraphs shall be inserted, namely:- 7. Supply of goods from a place outside India to another place outside India 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 clear

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KERALA STATE FINANCIAL ENTERPRISES LTD. Versus UNION OF INDIA REPRESENTED BY THE SECRETARY, NEW DELHI, COMMISSIONER OF CENTRAL EXCISE, CUSTOMS AND SERVICE TAX (APPEALS) , COCHIN, ADDITIONAL COMMISSIONER CENTRAL GST AND CENTRAL EXCISE TRIVANDRUM COMMISIONERATE, TRIVANDRUM, JOINT COMMISSIONER CENTRAL GST AND CENTRAL EXCISE, THIRUVANANTHAPURAM, ASSISTANT COMMISSIONER CENTRAL GST AND CENTRAL EXCISE, TRIVANDRUM AND SUPERINTENDENT CENTRAL GST AND CENTRAL EXCISE, ATTINGAL – 2018 (11) TMI 1474 – KERALA HIGH COURT – TMI – Nature of activity of “chit fund business” – cash management / fund management – whether classifiable under the category of “banking and other financial services” – Held that:- The issue stands squarely covered by the decision in t

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on to call for the records leading to the issuance of Exhibit-P3 and quash the same and all consequential proceedings pending against the petitioner. ii) Issue a writ of declaration or any other appropriate writ, order or direction to affirm that the petitioner is not liable to remit any amounts towards service tax on chit-fund business during the period from 2007- 2012. 2. Both the counsel agree that the issues stand squarely covered in the petitioner's favour by a Supreme Court decision in Union of India and Others v. M/s. Margadarshi Chit Funds (P) Ltd. Etc. AIR 2017 SC 3730 and also a Division Bench judgment, dated 14th March 2018, of this Court in W.A. No.273 of 2013. I, therefore, dispose of the writ petition, holding that the pet

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Goods and Services Tax – Started By: – Kaustubh Karandikar – Dated:- 22-11-2018 Last Replied Date:- 22-11-2018 – XYZ(India) importing goods from PQR (Japan) which is a parent company. XYZ re-selling these goods to customers in India. During warranty period, if any defect found in these goods, XYZ giving free replacement to the customers in India and the amount for the same is recovered from PQR as reimbursement of warranty charges. Is XYZ required to pay GST on it? If yes under which provisions

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Goods and Services Tax – Started By: – Pranav Mishra – Dated:- 22-11-2018 Last Replied Date:- 28-11-2018 – My GST was cancelled due to failure of non filing, to which I filed all dues and penalties and submitted hard copy to the proper officer. I was told to submit revocation form online which was not accessible to me. However the login to the GST portal was denied. I talked to the customer support of GST where they took time to look into any IT related issue but after few weeks I was directed to the proper officer again. Proper officer somehow was able to open my GST portal but the revocation section was still not working. They kept on calling be week after week to look into the matter and I kept on filing GST under the same portal which

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n and the refund has my rolling amount in it. Please tell me what are the other possibilities I have now to get the refund as its a huge amount for me which is stuck without which I would have to shutdown the firm and run away from whole world. – Reply By DR.MARIAPPAN GOVINDARAJAN – The Reply = Please file a writ petition before the High Court. – Reply By Kishan Barai – The Reply = Plz don't say run away from whole world . This world needs your help, there is always a solution for any problem. – Reply By Mohit Chauhan – The Reply = Yes, I totally agree. File a writ petition in the High Court and do not be discouraged. I hope everything will work out very soon and that you will get your money back. – Reply By Pranav Mishra – The Reply =

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Goods and Services Tax – Levy of GST – ancillary service provided by a company duly registered under the Companies Act, 2013 which is owned by State Government of Punjab – Transfer fees – such activity is liable to GST – TMI Updates – Highlights

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Goods and Services Tax – Detention of goods – demand of IGST – petitioner paid the amount through the portal – Revenue insists that the petitioner ought to have paid the tax and penalty either through

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Goods and Services Tax – Profiteering – reduction of rate of tax – The restaurant has failed to pass on both the above benefits to his customers – The amount is inclusive of the extra GST which the Re

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Goods and Services Tax – GST – By: – Mr. M. GOVINDARAJAN – Dated:- 22-11-2018 – In payment of tax it is usual to pay the tax in the wrong head. The service tax provisions in such scenario allow the assessee to get the refund of tax paid in the wrong head but the assessee is to pay tax in the correct head. There was no self adjustment of tax paid in the wrong head to the correct head or by the Department. The said problem also is available in GST provisions. In S. Saji v. The Commissioner, SGST and others – 2018 (11) TMI 954 – Kerala High Court, the petitioner purchased certain goods from Tamil Nadu. While in transit of the said goods to Kerala the Authorities retained the goods and issued the demand of tax to the petitioners. The consignor of the petitioners paid the tax under SGST along with the penalty based on the directions of the Authority. The petitioner showed to the Authorities the receipt as evidence of tax and penalty. The Authorities, despite the payment, refused to release

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4 speaks of adjustment. Where the amount of refund is completely adjusted against any outstanding demand under the Act, an order giving details of the adjustment is to be issued in Part A of FORM GST RFD-07. The petitioner s counsel lays stress on this process of adjustment and asserts that the amount remitted under one head can be adjusted under another head, for the demand can be any amount under the Act. The High Court found no difficulty for the respondent officials to allow the petitioner's request and get the amount transferred from the head 'SGST' to 'IGST'. It may, as the Government Pleader has contended, take some time, but it is inequitable for the authorities to let the petitioner suffer on that count. The High Court directed the Revenue the 2nd respondent to release the goods forthwith along with the vehicle and, then, ensure that the tax and penalty already stood remitted under the 'SGST' is transferred to the head 'IGST'. The High Cour

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central tax and the Union territory tax payable. Section 77(1) provides the situation in which the assessee paid the tax the CGST and SGST or CGST and UTGST on the hope that it is an intra-State supply. But the said supply is later held to be inter-State supply which attracts the payment of IGST. Here the payment of tax in the wrong head is on the genuine hope that it is an intra-State supply. In such cases the service tax paid as SGST shall be refunded to the assessee in such manner and subject to such conditions as may be prescribed. But the assessee is to pay IGST. Section 77(2) provides the situation which is reverse to section 77(1). In this situation the assessee considered the transaction as inter-State supply and paid integrated tax but subsequently it is held as intra-State supply which attracts the payment of CGST and SGST. In this case also there is no adjustment of tax from one head to another. One relief is granted to the assessee, if he pays the CGST and SGST or GSGT and

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Goods and Services Tax – GST – By: – CA.Chitresh Gupta – Dated:- 22-11-2018 Last Replied Date:- 22-12-2018 – The Goods & Services Tax has been implemented from July 1, 2017. It has brought about a paradigm shift in the methodology of levy and collection of taxes. GST is a transaction based Indirect tax where returns are filed periodically. It may be monthly or quarterly depending on the type of assessee or type of Return. The concept of Annual return in transaction-based tax is not new. It was prevalent in Central statutes like Excise Act in the form ER-4, 5 & 7. In Service Tax also ,annual return was proposed vide notification no. 19/2016-ST dated 01.03.2016, however on account of implementation of GST, the format of the annual return was not notified. The annual return was also prevalent in various State based VAT Acts. This required assessee to consolidate the information relating to Sale, Purchase including Input Tax Credit claimed in return and file the same in the form o

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R 1, GSTR 2, GSTR 3. GSTR 9A Filed by the persons registered under composition scheme under GST. GSTR-9B Filed by the e-commerce operators who have filed GSTR 8 GSTR-9C Reconciliation Statement duly certified by CA or ICWA to be filed by the taxpayers, whose annual turnover exceeds Rs 2 crores during the financial year. This needs to be filed along with annual return and audited financial statement. Implication for Delayed/ Non Filing of Annual Return As per proviso to section 47(2), any registered person who fails to furnish the return required under section 44 [annual return] by the due date shall be liable to pay a late fee of one hundred rupees for every day during which such failure continues subject to a maximum of an amount calculated at a quarter percent of his turnover in the State or Union territory. The late fee will be charged separately under CGST & SGST Acts respectively. Hence, total late fee will be ₹ 200/- per day of default. There is no specific penalty pres

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IN 3A Legal Name 3B Trade Name (if any) The Financial year will be 2017-18. However, since GST has been implemented from July 01,2017, the data in the Annual Return will relate to period of July 2017 to March 2018. The GSTIN, Legal Name and Trade name as appearing in GST REG-06 is to be mentioned. It may be noted that Annual return need to be filed for each GSTIN separately. Thus, if a multi-locational entity has 20 GSTIN, then 20 separate Annual return need to be filed. In case an entity has more than one GSTIN in the same state either due to separate business vertical or SEZ unit etc, separate annual return shall be filed. PART II: DETAILS OF OUTWARD AND INWARD SUPPLIES DECLARED DURING THE FINANCIAL YEAR This part specifically provides the consolidated view of Outward Supplies made by Registered person during the relevant period of FY 2017-18. This part also gives details of Inward supplies received by registered person where the person was liable to pay GST u/s 9(3) [Reverse Charge

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ns specified in (B) to (E) above (+) K Supplies / tax declared through Amendments (+) L Supplies / tax reduced through Amendments (-) M Sub-total (I to L above) N Supplies and advances on which tax is to be paid (H + M) above An important point to note here is that GSTR-9 will contain only the data as declared in already filed returns by registered person. This is in contrast with the Annual return as filed under VAT regimes where the modification if any in the return was carried out in Annual return. The same option is not available in GSTR-9. Another point for discussion is that at the time of preparation of GSTR 9, whether the details required to be reported at Part 4 should be: 1. Restricted to details reported in the GSTR 1 for the period July 2017 to March 2018; or 2. Should include all the details pertaining to the period July 2017 to March 2018 irrespective of the period (Maximum period September 2018) when such details are reported in GSTR 1. Based on the combined reading of T

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ed E Nil Rated F Non-GST supply G Sub-total (A to F above) H Credit Notes issued in respect of transactions specified in A to F above (-) I Debit Notes issued in respect of transactions specified in A to F above (+) J Supplies declared through Amendments (+) K Supplies reduced through Amendments (-) L Sub-Total (H to K above) M Turnover on which tax is not to be paid (G + L above) N Total Turnover (including advances) (4N + 5M – 4G above) It may be noted that Debit notes and credit notes which are in relation to these supplies should be captured only if the suitable effect of GST is provided in them. Any commercial/accounting credit or debit notes which do not contain the charge of GST should not be adjusted for the calculation of taxable value and tax amounts. PART III: DETAILS OF ITC AS DECLARED IN RETURNS FILED DURING THE FINANCIAL YEAR This part requires the registered person to give complete details of ITC availed, Ineligible ITC and reconciliation with GSTR-2A. This section is di

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from ISD H Amount of ITC reclaimed (other than B above) under the provisions of the Act I Sub-total (B to H above) J Difference (I – A above) K Transition Credit through TRAN-I (including revisions if any) L Transition Credit through TRAN-II M Any other ITC availed but not specified above N Sub-total (K to M above) O Total ITC availed (I + N above) The above table specifically provides reconciliation of total credit as availed under GSTR-3B with various sources of ITC like Inward supplies from Registered person, Unregistered person, Imports, ISD etc, We also need to disclose the transition credit as filed under TRAN-I & TRAN-II. The practical issue in compilation of this data is segregation of ITC into Input, Input services and Capital goods. In GST regime, the ITC as availed under all the above categories are claimed and recorded in the similar manner thus it will result in lot of effort to categorize the ITC availed in required categories. Further, while categorizing the ITC avai

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apital Goods on account of Exempt & Non- Taxable supply The details required under Table 7 are as under; A Reversal of ITC as per Rule 37 B Reversal of ITC as per Rule 39 C Reversal of ITC as per Rule 42 D Reversal of ITC as per Rule 43 E Ineligible ITC as per section 17(5) F Reversal of TRAN-I credit G Reversal of TRAN-II credit H Other reversals (pl. specify) I Total ITC Reversed (A to H above) J Net ITC Available for Utilization (6O – 7I) In respect of Rule 37, where ITC is required to be reversed on account of non -payment of consideration within 180 days from the date of invoice, it is important to make clear distinction in the books of accounts within current asset account between credit available and credit deferred. One of the practical issues which will be faced by the Industry is the disclosure of Ineligible credit. In many cases like ITC on food & beverages, works contract, rent-a cab etc was not available by virtue of Sec 17(5), the GST paid was recorded as a part o

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TC on inward supplies (other than imports and inward supplies liable to reverse charge but includes services received from SEZs) received during 2017-18 but availed during April to September, 2018 D Difference [A-(B+C)] E ITC available but not availed (out of D) F ITC available but ineligible (out of D) G IGST paid on import of goods (including supplies from SEZ) H IGST credit availed on import of goods (as per 6(E) above) I Difference (G-H) J ITC available but not availed on import of goods (Equal to I) K Total ITC to be lapsed in current financial year (E + F + J) The table compares ITC as appearing in GSTR-2A with the total ITC as claimed in GSTR-3B of FY 2017-18 and credit of FY 2017-18 claimed in GSTR-3B of FY 2018-19 other than ITC claimed on RCM, Imports. Suffice to say that if differential value in the clause 8D is positive, then the value in this clause is normal. However, if the differential value in this clause is Zero or negative, it points to normal values. If differential

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availed coming from 8E, 8F and 8J has been directed to be lapsed. ITC on reverse charge including ITC on import of service is not being reported in Table 8 and hence not being lapsed under Table 8. Merely because the said credits are not being subject to reporting purposes in Table 8 does not mean that the said credit would not lapse, if the said credit is not availed within the timelines set out in section 16(4) of CGST Act,2017. PART IV: DETAILS OF TAX PAID AS DECLARED IN RETURNS FILED DURING THE FINANCIAL YEAR Part IV is the actual tax paid during the financial year. Payment of tax under Table 6.1 of FORM GSTR-3B may be used for filling up the details in Table 9 as mentioned below; Description Tax Payable Paid through cash Paid through ITC Central Tax State Tax/UT Tax Integrated Tax Cess 1 2 3 4 5 6 7 Integrated Tax Central Tax – State/UT Tax – Cess Interest Late fee Penalty Other The purpose of said point number 9 in Part IV is to get consolidated value of tax liability s

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able turnover in Sl.No.4, particular 4M of GSTR 9. And if tax payable were to be reproduced from GSTR 3B, then there would mere repetition of information without any occasion to rectify later in GSTR 9C. Accordingly, where taxable turnover reported in GSTR 1 and GSTR 3B are in agreement with each other, there would be no new tax liability being identified for the first time in GSTR 9. However, where they are not in agreement, which is often the case, taxable turnover reported in GSTR 1 and that on which tax is actually discharged through GSTR 3B may not be in agreement. It is for this reason that Sl.No.9 captures tax payable based on GSTR 1 (4M) but tax paid based on GSTR 3B (6.1). PART V: PARTICULARS OF THE TRANSACTIONS FOR THE PREVIOUS FY DECLARED IN RETURNS OF APRIL TO SEPTEMBER OF CURRENT FY OR UPTO DATE OF FILING OF ANNUAL RETURN OF PREVIOUS FY WHICHEVER IS EARLIER Part V specifically requires following to be reported; 10 Supplies / tax declared through Amendments (+) (net of debi

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9 of FY 2017-18 because the circumstances necessitating credit note and debit note would have arisen only in 2018-19. PART VI: OTHER INFORMATION Part VI requires following information to be provided by Registered person 15 Particulars of Demands and Refunds during FY 2017-18 16 Information on supplies received from composition taxpayers, deemed supply under section 143 and goods sent on approval basis 17 HSN Wise Summary of outward supplies 18 HSN Wise Summary of Inward supplies 19 Late fee payable and paid Table 15 requires the registered person to provide the details of Refunds claimed, sanctioned, rejected or pending. Non-GST refund claims (i.e. refund claimed under erstwhile law) should not be reported here. The provisional refund received may be disclosed in refunds sanctioned. Further, cases where only deficiency memo has been issued and order of rejection is not passed, the same may be reported as Refunds pending and not in Refunds Rejected. In case of export of goods with paym

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tion of the CGST Act,2017 and supplies received on approval basis from principal and returned to supplier within 180 days of supply. For the financial year 2017-18, a summary of inward and outward supplies effected / made against a particular HSN code is to be reported in this Table17 & Table 18 respectively. It is optional to mention HSN code for taxpayers having annual turnover up to ₹ 1.50 crores. It will be mandatory to report HSN code at two digits level for taxpayers having annual turnover in the preceding year above ₹ 1.50 crores but up to ₹ 5.00 crores and at four digits level for taxpayers having annual turnover above ₹ 5.00 crores. It will an onerous task for the assesee to fill Table 17 & Table 18 as HSN codes in case of inward supplies is not captured by majority of corporates. Table 19 will contain details, in case of late filing of Annual return. Conclusion Reference all the aspects and issues discussed above, filing of GSTR 9 will be cumbe

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that everybody may get sufficient time to complete the same and take care of various intricacies involved in filing the same. – Reply By ARUN JAIN – The Reply = Very helpful and detailed article – Reply By Jitender Ranka – The Reply = NOTE FOR OPINION ON ITEMS NOT SHOWN IN GSTR1 BUT ADJUSTED IN GSTR3B There are various issues in current GST laws and one issues arises from a deviation from earlier GST provision in treating general discounts in trade (which are related to many invoices) as sales promotion instead of reversal of purchase for buyer and sales for seller. Here are facts of case: This is related to distributor and FMCG company. They usually ask distributor to pass on discounts in market and make claim (based on supporting) periodically monthly/quarterly or so. As per earlier practice of VAT there was no VAT involved and there was no reversal of input VAT by distributor and output VAT by FMCG company(supplier). But with GST being in force. Companies have been giving GST 18% i

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iled computation by showing the input GST on purchases and input GST reversed on account of credit notes of company and giving all details of credit notes for period from 1st July 17 to 31st March 18. Can this become basis for FMCG company to claim out put reversal which they can show in their audit report as well. NOTE FOR OPINION ON ITEMS NOT SHOWN IN GSTR1 BUT ADJUSTED IN GSTR3B There are various issues in current GST laws and one issues arises from a deviation from earlier GST provision in treating general discounts in trade (which are related to many invoices) as sales promotion instead of reversal of purchase for buyer and sales for seller. Here are facts of case: This is related to distributor and FMCG company. They usually ask distributor to pass on discounts in market and make claim (based on supporting) periodically monthly/quarterly or so. As per earlier practice of VAT there was no VAT involved and there was no reversal of input VAT by distributor and output VAT by FMCG com

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2018 (11) TMI 1346 – ALLAHABAD HIGH COURT – TMI – Release of seized goods with vehicle – Held that:- The petitioner may get the goods and vehicle released by depositing and furnishing the amount as required and in case such an amount is deposited it shall abide by the final disposal of the regular assessment/penalty – petition disposed off. – Writ Tax No. – 1476 of 2018 Dated:- 22-11-2018 – Pankaj Mithal And Ashok Kumar JJ. For the Petitioner : Aloke Kumar For the Respondent : C.S.C., A.S.G.I.

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M/s. TMT GRANITES (PVT) LTD. Versus THE COMMISSIONER STATE GST DEPARTMENT, KERALA, TRIVANDRUM, THE DEPUTY COMMISSIONER OF STATE TAX STATE GST DEPARTMENT, PALAKKAD, THE ASSISTANT COMMISSIONER (ASSESSMENT) , PALAKKAD AND THE STATE OF KERALA REPRESENTED BY ITS SECRETARY (TAXES DEPARTMENT) , THIRUVANANTHAPURAM – 2018 (11) TMI 1360 – KERALA HIGH COURT – TMI – Mining Services – C-Forms – concession for the HSD – whether “quarrying” can act as “mining”? – benefits under Section 8 of the CST Act – whether the fuel it uses for its machinery and vehicles qualifies for that benefit?
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Held that:- The Court analysed, among other things, Section 8 of the CST Act. It has held that the “locomotives and motor-vehicles” are used by the petitioner “after the mining operations were concluded and before the manufacturing process commenced,” and also to carry the finished products.
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The Company uses HSD oil as its fuel in its quarrying operations. With that fuel it runs its machinery and also its

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major minerals, and the other minor minerals. One involves the prospecting or extracting, the other mere excavation. Their semantic nuances apart, can we treat quarrying as an act of mining ? We will answer. Facts: 2. TMT Granites (Pvt.) Ltd., a dealer under the KVAT Act, quarries and crushes minor minerals; that is, the granite and other building materials. It uses much machinery and many vehicles in its quarrying operations and also the connected crushing operations. To fuel its machinery and vehicles, the Company uses High Speed Diesel(HSD). So the Company claims concession for the HSD and wants to download CForms. Access denied, the Company has filed this writ petition. Submissions: Petitioner s: 3. Sri Philip J. Vettickattu, the learned counsel for the petitioner, strenuously contends that the Company can claim tax concession on the HSD it purchases. According to him, Section 8 of the Central Sales Tax Act, 1956 ( CST Act ) enables the Company to claim that advantage. 4. As Secti

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he mining and quarrying are entirely different activities. According to her, the Government grants mining permit, whereas the Department of Geology grants quarrying permit. She has also submitted that mining concerns itself with major minerals and the quarrying with minor minerals. The former is extracted subsoil and the latter super-soil. 7. Dr. James has also contended that the Kerala Value Added Tax Act, especially Section 8, covers only the consumables related to mining activity. In this regard, she stresses that the Company s using motor vehicles for transporting the quarried material falls outside Section 8 of the CST Act. According to her, transportation is an activity unconnected to the quarrying, even if quarrying were to be equated with mining. 8. Taking me through all the statutory provisions which the petitioner's counsel referred to earlier, Dr. James has made valiant efforts to convince me that the Company s demand for tax concession or exemption cannot be sustained.

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mpany needs huge quantities of oil, Hindustan Petroleum Corporation has allowed it to have its own filling station. 11. So the Company Wanted to take advantage of Section 8 of the CST Act. For that purpose, the Company wanted to download C forms from KVATIS, the department's online portal. Access denied, the Company submitted applications in November and December 2017, requesting the authorities to let the Company to access the C forms. Though departmentally the Company's applications were considered, eventually nothing came out of it. Aggrieved, the Company has filed this Writ petition. 12. I reckon much depends on what Section 8 of the CST Act says. The provision, to the extent relevant, reads: Section 8. Rates of tax on sales in the course of inter-State trade or commerce:- (1) Every dealer, who in the course of inter-State trade or commerce, sells to a registered dealer goods of the description referred to in sub-section (3), shall be liable to pay tax under this Act, which

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described in sub-section (3), and (c) it must be paying tax under the CST Act. These conditions fulfilled, the dealer can pay tax at three per cent of its turnover or at the rate applicable to the sale or purchase of such goods inside the appropriate State under the sales tax law of that State, whichever is lower. 14. Sub-section (3) (b) of Section 8 specifies the goods. Among them included are the goods specified in the certificate of registration of the registered dealer for use by it in the manufacture or processing of goods for sale or in mining . The Company, however, carries quarrying operations. So the question is, can quarrying be equated with mining ? Mining and Quarrying: 15. First, we will examine the definitional dynamics of the words mine and quarry . According to Dictionary of Mining, Mineral, & Related Terms, compiled by the U.S. Bureau of Mines,6 quarry is an open or surface mineral working, usually for the extraction of building stone, such as slate, limestone, an

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l, metallic ore, coal, salt, etc. Lexically, true, both quarrying and mining are distinct activities with different objectives. But the question is, does this distinction survive legislatively. In Section 8 of the CST Act, only mining is found mentioned, though. 18. In Bihar Mines Ltd., of the Constitution Bench, Bachawat J., wrote a concurring judgment, supplementing the lead judgment by Raghubar Dayal, J. His Lordship has elaborated on mining and winning minerals. That discussion may not help here. Legislative Definitions: 19. Section 2 (j) (iv) of the Mines Act, 1952, defines "mine" to mean any excavation where any operation for the purpose of searching for or obtaining minerals has been or is being carried on. And this excavation includes (i) all borings, bore holes, oil wells and accessory crude conditioning plants, including the pipe conveying mineral oil within the oil fields; (ii) all shafts, in or adjacent to and belonging to a mine, whether in the course of being su

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of minor minerals and for purposes connected therewith. 22. Rule 2 (xvi) of the Kerala Minor Minerals Concession Rules 2015 defines quarrying lease to mean a mining lease for minor minerals granted under these rules for a period as specified in Rule 39. Rule 15 deals with the removal of overburden by a quarrying permit holder. 23. To elaborate, Rule 15 permits a person with a quarrying permit for extracting minerals also to extract overburden from the area under the permit without obtaining a quarrying permit, if such extraction is inevitable for him to extract the mineral under the permit. Judicial View: 24. In D.K. Trivedi and Sons, the petitioner raised questions relating to the constitutionality of Section 15(1) of the Mines and Minerals (Regulation and Development) Act, 1957, the power of the State Governments to make rules under Section 15 to enable them to charge dead rent and royalty in respect of leases of minor minerals granted by them. Also in question was the validity of R

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ining leases granted under the Mineral Concession Rules, 1960. 26. Then, D.K. Trivedi has paid particular attention to the Gujarat Minor Mineral Rules, in the statutory backdrop of Section 15(2). The term "minerals", as we have already noted, is defined by Clause (a) of Section 3 as including "all minerals except mineral oils". This definition would thus include, according to D.K. Trivedi, minerals which are minor minerals as also minerals other than minor minerals. The term "minor minerals" is, however, separately defined by Clause (e) because the power to make rules for them is vested by Section 15(1) in the State Governments. Of course, the power to make rules with respect to minerals other than minor minerals is vested in the Central Government. 27. D.K. Trivedi rejects the plea that the power to fix from time to time the rate of royalty under Sub-section (3) can only apply to mining leases and other minor mineral concessions and not to quarry leases.

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f the Gujarat Rules. That Rule defines "quarry lease" as "a kind of mining lease in respect of a minor mineral granted under these rules." In this context, we will, here, examine Rule 2 (xvi) of the Kerala Minor Mineral Concession Rules, 2015. It is, in fact, in para materia with the Gujarat Rule: Quarrying Lease means a mining lease for minor minerals granted under these rules for a period as specified in rule 39; Quarry leases are, therefore, included in the term "mining leases", so holds D.K. Trivedi. And so must we. 29. To cap the discussion, I may refer to the Division Bench's judgment in All Kerala River Protection Council. It has dealt with, among other things, the environmental issues concerning the mining and quarrying in the State of Kerala. After an exhaustive analysis of the legal position on the issue, the Division Bench has held that mining operation is a wider term, which shall include mining operations by any means; that is, mining leas

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elecommunications network or in mining, or in the generation or distribution of electricity or any other form of power. 32. In Indian Copper Corporation Limited, the petitioner applied to the tax authorities for registration as a dealer under the Central Sales Tax Act, setting out a list of goods for specification in the certificate of registration under section 8 of the Act. The authority issued the certificate of registration to the petitioner excluding certain categories of goods which the Corporation claimed should be specified under section 8(3)(b) of the Act. The Corporation then filed a writ petition. The High Court of Patna allowed it in part; it asked the authority to include only a few of the goods the petitioner had insisted on. Notably, it excluded the motor vehicles. 33. To have the rest of the goods, too, included in the certificate of registration, the petitioner approached the Supreme Court. Then, the Court analysed, among other things, Section 8 of the CST Act. It has

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rom the factory. The expression "goods intended for use in the manufacturing or processing of goods for sale" may ordinarily include such vehicles as are intended to be used for removal of processed goods from the factory to the place of storage. 34. In J.K. Cotton Spinning and Weaving Mills, the Supreme Court has followed Indian Copper Corporation. It has held that Section 8(3)(b) authorises the Sales Tax Officer to specify the goods intended for use by the dealer in the manufacture or processing of goods for sale or in mining, and so on. By Rule 13, the Central Government has prescribed the goods referred to in s. 8(3)(b) : such goods must be intended for use in the manufacture or processing of goods for sale or in mining or generation or distribution of power, and the intended use of the goods must be as specified in Rule 13. It is true that under Rule 13, read with Section 8(3)(b), mere intention to use the goods in the manufacture or processing of goods for sale will not

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miner and as manufacturer) fell within Rule 13, even if the vehicles were used merely for removing ore from the mine to the factory, and finished goods from the factory to the place of storage. Spare parts and accessories required for the effective operation of those vehicles were also held to fall within Rule 13. 35. Veering back to the facts, I may observe that the Company uses HSD oil as its fuel in its quarrying operations. With that fuel it runs its machinery and also its motor vehicles. In Indian Copper Corporation Ltd., the Supreme Court has discussed thread bear the legislative nuances of Section 8, especially Section 8(3)(b), of the CST Act. On facts too, the Company's case accords with Indian Copper Corporation Ltd. 36. Indeed, the Government Pleader has contended that the Company, if it were in mining activity, may have justification to claim tax concession for the fuel it uses for running its machinery. But she has strongly opposed the Company's claim on the fuel it

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2018 (11) TMI 1412 – ALLAHABAD HIGH COURT – 2019 (20) G. S. T. L. 6 (All.) – Levy of GST – premimum for leasing out of the plot allotted to the petitioner for the purposes of hospital, nursing home, diagnostic centeres etc. – The Authority for Advance Ruling, U.P. vide order dated 6.6.2018 ruled that GST is not applicable and the upfront amount on the lease as mentioned at serial no.41 of the notification no. 12 of 2017 as amended by notification no. 32 of 2017 is exempt.
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Held that:- Even though the aforesaid Advance Ruling is final and conclusive, respondent no. 3 has issued notice dated 24.8.2018 for payment of GST on the premimum for leasing out of the plot allotted to the petitioner for the purposes of hospital, nursing home, dia

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ice Tax Act, 2017 (in short of the Act). The two notifications no. 12 of 2017 and 32 of 2017 issued in exercise of powers under Section 11 (1) of the Act exempt service tax on one time upfront amount leviable in respect of service by way of granting long term (30 years or more) lease of industrial and other kind of plots. In view of the above notifications, respondent no. 3 Yamuna Express Way Industrial Authority applied for Advance Ruling to the authority for Advancing Ruling U.P., as to whether the GST is applicable on upfront amount in respect of the service by way of granting of long term lease of 30 years or more for plots catering to public health care such as hospital, nursing home, diagnostic centeres etc. The Authority for Advance

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