Author: admin_gst

M/s Shri Kunj Bihari Industries LLP Versus State of Haryana and another
GST
2019 (2) TMI 1217 – PUNJAB AND HARYANA HIGH COURT – TMI
PUNJAB AND HARYANA HIGH COURT – HC
Dated:- 24-1-2019
CWP No. 24287 of 2018
GST
MR AJAY KUMAR MITTAL AND MRS MANJARI NEHRU KAUL, JJ.
For The petitioner (s) : Mr. Rajiv Sharma, Advoate
For The Respondent : Mr. Sunish Bindlish, Advocate
ORDER
AJAY KUMAR MITTAL, J. (Oral)
This order shall dispose of Civil Writ Petitions Nos. 24287 & 24291 of 2018, as according to the learned counsel for the parties, the issue involved therein is identical. However, the facts are being extracted from CWP No. 24287 of 2018.
2. Petitioner has approached this Court under Articles 226/227 of the Constitutio

= = = = = = = =

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

= = = = = = = =

ST Act, 2017 read with Rules 117(1), 118, 119 & 120 of the CGST Rules, 2017, to sanction the Tran-1 amount to the petitioner. However, it is further stated that the Government of India, Ministry of Finance (Department of Revenue), Central Board of Excise & Customs, New Delhi, vide their notification No. 48/2018-Central Tax, dated 10.09.2018, has extended the time period for applying the Tran-1 Claim upto 31st march, 2019. Therefore, the petitioner can claim by applying the Tran-1 claim within the extended period till 31st March, 2019.
4. In support of the aforesaid contention, short written statements on behalf of respondent No.2 (in CWP Nos. 24287 & 24291 of 2018) have been filed in Court today. The same are taken on record, subject to al

= = = = = = = =

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

= = = = = = = =

Elappunkal Stores, Nedumkunnam, Mr. Reji K.R, M/s. Shyama Traders Versus State Tax Officer, The Commissioner State Goods And Service Tax Department, The Inspecting Assistant Commissioner, State Of Kerala, Union Of Inidia, Elappunkal Stores, Nedumkunnam, Mr. Reji K.R, M/s. Shyama Traders, A.V. JOB, Komala Bakery And Hotel, Keerippattu Traders, M/s. Seemas Wedding Collections, M/s. Swapna Jewellery And Mount Carmel Cashews Versus State Tax Officer, The Commissioner State Goods And Service Tax Department, The Inspecting Assistant Commissioner, State Of Kerala, Union Of Inidia, Assistant Commissioner (Assessment), The Secretary, Tax Department, Government Of Kerala, Central Board Of Excise And Customs Department Of Revenue And The Deputy Tahsil

= = = = = = = =

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

= = = = = = = =

ri. V.Devananda Narasimham, Sri. P.H.Riyas For The Petitioner.
Addl. AG K.K. Ravindranath., Sri. C.E. Unnikrishnan., Dr. Thushara James., Sri Sreelal Warrier For The Respondent.
JUDGMENT
[WP(C).40023/2018, WP(C).40224/2018, WP(C).40230/2018, WP(C).40425/2018, WP(C).40827/2018, WP(C).41423/2018, WP(C).41621/2018, WP(C).41823/2018, WP(C).41828/2018, WP(C).42229/2018 ]
In this batch of writ petitions the petitioners have laid challenge, amongst others, on the ground that Section 174 of the KSGST Act is ultra vires of the state's legislative power or on the ground that the demand is barred by limitation under Section 25(1) of the KVAT Act. In some cases, both the grounds have been taken.
2. All counsel agree that the issues stand s

= = = = = = = =

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

= = = = = = = =

GST on Co-operative Housing Societies
GST Law and Procedure – GST Law and Procedure [January, 2019]
GST
Chapter Forty One
GST on Co-operative Housing Societies
INTRODUCTION
Co-operative Housing Societies are entities registered under the co-operative laws of the respective States.
According to Section 2(16) of the Maharashtra Cooperative Society Act, 1960, “housing society” means a society, the object of which is to provide its members with open plots for housing, dwelling houses or flats; or if open plots, the dwelling houses or flats are already acquired, to provide its members common amenities and services.
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.
Co-operative Housing Societies – whether amenable to levy of GST
A So

= = = = = = = =

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

= = = = = = = =

course or furtherance of business. The definition of business as per section 2(17) of the CGST Act, 2017 is as under
“business” includes
(a) any trade, commerce, manufacture, profession, vocation, adventure, wager or any other similar activity, whether or not it is for a pecuniary benefit;
(b) any activity or transaction in connection with or incidental or ancillary to sub-clause (a);
(c) any activity or transaction in the nature of sub-clause (a), whether or not there is volume, frequency, continuity or regularity of such transaction;
(d) supply or acquisition of goods including capital goods and services in connection with commencement 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 c

= = = = = = = =

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

= = = = = = = =

y charge GST in the monthly maintenance bills raised on its members. Notification No.12/2017 -Central Tax (Rate) dated 28.06.2017 at sr.no.77 provides for the following exemption to housing societies:
Service by an unincorporated body or a non- profit entity registered under any law for the time being in force, to its own members by way of reimbursement of charges or share of contribution –
(a) as a trade union;
(b) for the provision of carrying out any activity which is exempt from the levy of Goods and service Tax; or
(c) 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 in a housing society or a residential complex
In view of the provision contained at (c) above, a society may be registered under GST, however if the monthly contribution received from members is less than ₹ 5, 000/- (and the amount is for the purpose of sourcing of goods and services from a third person fo

= = = = = = = =

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

= = = = = = = =

levies would be excluded while calculating the limit of ₹ 5,000/-.
Further, the question would then arise that if the monthly bill is say ₹ 6,000/- (and the same is on account of services for common use of its members), will GST be applicable on ₹ 6,000/- or ₹ 1, 000/-. In such cases, exemption is available up to an amount of ₹ 5, 000/ and GST would be applicable on the amount in excess of ₹ 5, 000/-
TRU videF.No.332/04/2017-TRU released FAQs on levy of GST on supply of services to the Co-operative society and has clarified as under.
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

= = = = = = = =

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

= = = = = = = =

late payment, attract GST, as these charges are collected by the RWA/ Co-operative Society for supply of services meant for its members.
As per Section 23 (1) of the CGST Act, 2017, the following persons shall not be liable to registration, namely:
(a) any person engaged exclusively in the business of supplying goods or services or both that are not liable to tax or wholly exempt from tax under this Act or under the Integrated Goods and Services Tax Act;
(b) an agriculturist, to the extent of supply of produce out of cultivation of land.
Thus, if the turnover of the society is less than ₹ 20 Lakh or even if the turnover is beyond ₹ 20 lakhs but the monthly contribution of individual members towards maintenance is less than ₹ 5000/- (such services being exempt) and the society is providing no other taxable service to its members or outsiders, then the society (essentially exclusively providing wholly exempt services) need not take registration under GST.
Whether a

= = = = = = = =

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

= = = = = = = =

ers if such subscription is more than ₹ 5000 per member and the annual turnover of RWA by way of supplying of services and goods is also ₹ 20 lakhs or more. Under GST, the tax burden on RWAs will be lower for the reason that they would now be entitled to ITC in respect of taxes paid by them on capital goods (generators, water pumps, lawn furniture etc.), goods (taps, pipes, other sanitary/hardware fillings etc.) and input services such as repair and maintenance services. ITC of Central Excise and VAT paid on goods and capital goods was not available in the pre-GST period and these were a cost to the RWA.
Thus, there is no change made to services provided by the Housing Society (RWA) to its members in the GST era.
Conclusion
In so far as tax implications on housing societies are concerned, the position prevailing under Service Tax is sought to be continued under GST. The tax burden under GST will be lower as the society would be entitled to take ITC which was hitherto not

= = = = = = = =

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

= = = = = = = =

Cabinet approves creation of the National Bench of the Goods and Services Tax Appellate Tribunal (GSTAT)
GST
Dated:- 23-1-2019

The Union Cabinet, chaired by the Prime Minister Shri Narendra Modi, has approved the creation of National Bench of the Goods and Services Tax Appellate Tribunal (GSTAT).
The National Bench of the Appellate Tribunal shall be situated at New Delhi. GSTAT shall be presided over by the President and shall consist of one Technical Member (Centre) and one Technical Member (State).
The creation of the National Bench of the GSTAT would amount to one time expenditure of ₹ 92.50 lakh while the recurring expenditure would be ₹ 6.86 crore per annum.
Details:
Goods and Services Tax Appellate Tribu

= = = = = = = =

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

= = = = = = = =

Statement of Outward Supplies (GSTR-1) in GST
GST Law and Procedure – GST Law and Procedure [January, 2019]
GST
Chapter Thirty Three
Statement of Outward Supplies (GSTR-1) in GST
Introduction:
FORM GSTR-1 is a statement of the details of outward supplies (i.e. sales of goods or provision of services) of goods or services or both. The details filed in table of this statement are to be communicated to the respective recipients of the said supplies. The details of outward supplies shall include details of invoices, debit notes, credit notes, advances received, advances adjusted and revised invoices issued in relation to outward supplies made during any tax period.
Persons liable to file:
GSTR- 1 has to be filed electronically by every registered person other than Suppliers of online information and database access or retrieval (OIDAR) services or an Input Service Distributor or a non-resident taxable person or a person paying tax under composition levy or persons liable to c

= = = = = = = =

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

= = = = = = = =

ishing the returns for a specified class of registered persons. These dates have been extended for the financial year 2017-18 as per Notification No. 71/2017 – Central Tax and 72/2017 – Central Tax dated 29/12/2017.
Rectification process:
GSTR 1 once filed cannot be revised. Any mistake made in the return can be revised in the next month's return.
Information to be provided:
The details of outward supplies of goods or services or both furnished in FORM GSTR-1 shall include the –
(a) invoice wise details of all –
(i) inter-State and intra-State supplies made to the registered persons; and
(ii) inter-State supplies with invoice value more than two and a half lakh rupees made to the unregistered persons;
(b) consolidated details of all –
(i) intra-State supplies made to unregistered persons for each rate of tax; and
(ii) State wise inter-State supplies with invoice value up to two and a half lakh rupees made to unregistered persons for each rate of tax;
(c) debit and credit

= = = = = = = =

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

= = = = = = = =

supplies covered by Table 6. In this Table the Invoice-level information pertaining to B (Business) to B (Business) supplies for the tax period has to be filled. In this table the specific details like the GSTIN/ UIN (of the recipient), Invoice No & date, invoice value, rate of tax, taxable value, the amount of Central tax, State tax / Union territory tax, Integrated tax and Cess, the place of Supply has to be entered by the taxpayer. Place of Supply (PoS) has to be entered only if the same is different from the location of the recipient.
Sub Table 4A is meant for invoice details of all supplies (rate wise) other than reverse charge/ made through e-commerce operator.
Sub Table 4B is meant for invoice details of registered supplies (rate wise) attracting reverse charge under subsection (3) of section 9. Any supply made by SEZ to DTA, is required to be reported by SEZ unit in this table.
Sub Table 4C is meant for invoice details of supplies (operator wise and rate-wise) effected throu

= = = = = = = =

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

= = = = = = = =

ce under section 52 of the CGST Act, 2017.
Table 6: Zero rated supplies and Deemed Exports:
In this Table the Invoice-level information pertaining to the following has to be entered: Sub Table 6A Exports out of India
Sub Table 6B Supplies to SEZ unit/ and SEZ developer
Sub Table 6C Deemed Exports
In this table the specific details like the GSTIN (of the recipient) Invoice No & date, invoice value, Shipping bill/ Bill of export number and date, rate of tax, taxable value and the amount of Integrated tax.
This Table needs to capture information about shipping bill and its date. However, if the shipping bill details are not available, Table 6 will still accept the information. The same can be updated through submission of information in relation to amendment Table 9 in the tax period in which the details are available but before claiming any refund / rebate related to the said invoice. The detail of Shipping Bill shall be furnished in 13 digits capturing port code (six digits) follo

= = = = = = = =

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

= = = = = = = =

lowing details has to be provided against the sub table number mentioned.
7A. Intra-State supplies
7A (1). Consolidated rate wise outward supplies [including supplies made through e-commerce operator attracting TCS]. Here gross intra-State supplies, rate-wise, including supplies made through e-commerce operator attracting collection of tax at source
7A (2). Out of supplies mentioned at 7A (1), value of supplies made through e-Commerce Operators attracting TCS (operator wise, rate wise). Here details of supplies (operator wise, rate wise) made through e-commerce operator attracting collection of tax at source out of gross supplies reported in Table 7A (1) has to be entered. The GSTIN of e-commerce operator will also have to be entered.
7B. Inter-State Supplies where invoice value is up to ₹ 2.5 Lakh. The information has to be captured state wise and rate wise.
7B (1). Place of Supply (Name of State)- Here details of supplies (rate wise) of the gross inter-State supplies inclu

= = = = = = = =

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

= = = = = = = =

urns for earlier tax periods in Table 4, 5 and 6 [including debit notes, credit notes, refund vouchers issued during current period and amendments thereof]
This table is meant for entering the amendments of B to B supplies (reported in Table 4), B to C Large supplies (reported in Table 5) and Supplies involving exports / SEZ unit or SEZ developer / deemed exports (reported in Table 6)
* The information is to be entered rate-wise;
* The original information of debit / credit note issued and amendment to it reported in earlier tax periods; While furnishing information the original debit note / credit note, the details of invoice shall be mentioned in the first three columns, while furnishing revision of a debit note/credit note, the details of original debit note/credit note shall be mentioned in the first three columns of this Table;
* Place of Supply (PoS) only if it is different from the location of the recipient;
* Any debit/ credit note pertaining to invoices issued before

= = = = = = = =

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

= = = = = = = =

lating to advances would be submitted only if the invoice has not been issued in the same tax period in which the advance was received. It may however be noted that vide Notification no. 66/2017-Central Tax dated 15.11.2017, tax is not required to be paid on advances received in relation to supply of goods only (tax would be payable on advances received in respect of services).
Table 11B is for the advance amount received in earlier tax period but the invoices have been received in the current tax period and adjusted against the supplies being shown in this tax period in Table Nos. 4, 5, 6 and 7. The information is to be separately shown for both interstate and intra state supplies. The information regarding the tax amount to be paid on account of the advances being added to the tax liability has to be also entered. The Place of Supply has to be mentioned.
Part II of Table 11
Amendment of information furnished in Table No. 11[1] in GSTR-1 statement for earlier tax periods can be don

= = = = = = = =

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

= = = = = = = =

Works Contract in GST
GST Law and Procedure – GST Law and Procedure [January, 2019]
GST
Chapter Twenty Eight
Works Contract in GST
Introduction:
What is a works contract?
Simply put, a works contract is essentially a contract of service which may also involve supply of goods in the execution of the contract. It is basically a composite supply of both services and goods, with the service element being dominant in the contract between parties.
In a general sense, a contract of works, may relate to both immovable and immovable property. E.g. if a sub-contractor, undertakes a sub-contract for the building work, it would be a works contract in relation to immovable property. Similarly, if a composite supply in relation to movable property such as fabrication/painting/annual maintenance contracts etc. is undertaken, the same would come within the ambit of the broad definition of a works contract.
Works Contract – the position in VAT & Service Tax
A works contract has elements

= = = = = = = =

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

= = = = = = = =

iable to tax as sale of goods and such contract is for the purpose of carrying out construction, erection, commissioning, installation, completion, fitting out, repair, maintenance, renovation, alteration of any moveable or immoveable property or for carrying out any other similar activity or a part thereof in relation to such property. By virtue of Section 66E of Finance Act, 1994, the service portion involved in the execution of works contract was a declared service. Hence Service Tax could be levied only on the service element of the works contract. The principles of segregation of the value of goods were provided in Rule 2A of the Service Tax (Determination of Value) Rules, 2006.
Position under GST
Under GST laws, the definition of “Works Contract” has been restricted to any work undertaken for an “Immovable Property” unlike the existing VAT and Service Tax provisions where works contracts for movable properties were also considered.
The Works Contracts has been defined in Secti

= = = = = = = =

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

= = = = = = = =

of the CGST Act, 2017 shall be treated as a supply of services. Thus, there is a clear demarcation of a works contract as a supply of service under GST.
As per section 17(5) (c) of the CGST Act, 2017, input tax credit shall not be available in respect of the works contract services when supplied for construction of an immovable property (other than plant and machinery) except where it is an input service for further supply of works contract service.
Thus, ITC for works contract can be availed only by one who is in the same line of business and is using such services received for further supply of works contract service. For example a building developer may engage services of a subcontractor for certain portion of the whole work. The subcontractor will charge GST in the tax invoice raised on the main contractor. The main contractor will be entitled to take ITC on the tax invoice raised by his sub-contractor as his output is works contract service. However if the main contractor provid

= = = = = = = =

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

= = = = = = = =

tion, value and quantity (wherever applicable) of goods or services received for the execution of works contract;
(c) description, value and quantity (wherever applicable) of goods or services utilized in the execution of works contract;
(d) the details of payment received in respect of each works contract; and
(e) the names and addresses of suppliers from whom he received goods or services.
Rate of GST
The rate of GST for Works Contract service has been prescribed in serial number 3 of Notification No. 11/2017-Central Tax (Rate) dated 28.06.2017 as amended by Notification No. 20/2017-Central Tax (Rate) dated 22.08.2017 & notification no.24/2017-Central Tax (Rate) dated 21.09.2017 and is as under:
(i) Construction of a complex, building, civil structure or a part thereof, including a complex or building intended for sale to a buyer, wholly or partly, except where the entire consideration has been received after issuance of completion certificate, where required, by the compete

= = = = = = = =

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

= = = = = = = =

t, or (iii) sewerage treatment or disposal
6% CGST+ 6% SGST
(iv) Composite supply of works contract as defined in clause (119) of section 2 of the Central Goods and Services Tax Act, 2017, supplied by way of construction, erection, commissioning, installation, completion, fitting out, repair, maintenance, renovation, or alteration of,-
(a) a road, bridge, tunnel, or terminal for road transportation for use by general public;
(b) a civil structure or any other original works pertaining to a scheme under Jawaharlal Nehru National Urban Renewal Mission or Rajiv Awaas Yojana;
(c) a civil structure or any other original works pertaining to the “In-situ rehabilitation of existing slum dwellers using land as a resource through private participation” under the Housing for All (Urban) Mission/Pradhan Mantri Awas Yojana, only for existing slum dwellers;
(d) a civil structure or any other original works pertaining to the “Beneficiary led individual house construction / enhancement” under th

= = = = = = = =

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

= = = = = = = =

t authority under-
(1) the “Affordable Housing in Partnership” component of the Housing for All (Urban) Mission/Pradhan Mantri Awas Yojana;
(2) any housing scheme of a State Government;
(e) post-harvest storage infrastructure for agricultural produce including a cold storage for such purposes; or
(f) mechanised food grain handling system, machinery or equipment for units processing agricultural produce as food stuff excluding alcoholic beverages
6% CGST+ 6% SGST
(vi) Services provided to the Central Government, State Government, Union Territory, a local authority or a governmental authority by way of construction, erection, commissioning, installation, completion, fitting out, repair, maintenance, renovation, or alteration of –
(a) a civil structure or any other original works meant predominantly for use other than for commerce, industry, or any other business or profession;
(b) a structure meant predominantly for use as (i) an educational, (ii) a clinical, or(iii) an art or

= = = = = = = =

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

= = = = = = = =

For the above purpose, “total amount” means the sum total of,-
(a) consideration charged for aforesaid service; and
(b) amount charged for transfer of land or undivided share of land, as the case may be
Place of Supply in respect of Works Contract
Works Contract under GST would necessarily involve immovable property. In view of the same the place of supply would be governed by Section 12(3) of the IGST Act, 2017, where both the supplier and recipient are located in India. The place of supply would be where the immovable property is located.
In case the immovable property is located outside India, and the supplier as well as recipient both are located in India, the place of supply would be the location of recipient as per proviso to Section 12(3) of the IGST Act, 2017.
As per Section 13(4) of the IGST Act, 2017, in cases where either the Supplier or the Recipient are located outside India, the place of supply shall be the place where the immovable property is located or intended t

= = = = = = = =

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

= = = = = = = =

Deemed Exports in GST
GST Law and Procedure – GST Law and Procedure [January, 2019]
GST
Chapter Twenty Five
Deemed Exports in GST
Introduction
“Deemed Exports” refers to supplies of goods manufactured in India (and not services) which are notified as deemed exports under Section 147 of the CGST/SGST Act, 2017. The supplies do not leave India. The payment for such supplies is received either in Indian rupees or in convertible foreign exchange.
Deemed exports are not zero rated supplies by default, unlike the regular exports. Hence all supplies notified as supply for deemed export will be subject to levy of taxes i.e. such supplies can be made on payment of tax and cannot be supplied under a Bond/LUT. However, the refund of tax paid on the supply regarded as Deemed export is admissible to either the supplier or the recipient. The application for refund has to be filed by the supplier or recipient (subject to certain conditions) of deemed export supplies, as the case may be.

= = = = = = = =

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

= = = = = = = =

s on pre-import basis for physical exports.
2. Export Promotion Capital Goods Authorisation means an authorisation issued by the Director General of Foreign Trade under Chapter 5 of the Foreign Trade Policy 2015-20 for import of capital goods for physical exports.
3. “Export Oriented Unit” means an Export Oriented Unit or Electronic Hardware Technology Park Unit or Software Technology Park Unit or Bio-Technology Park Unit approved in accordance with the provisions of Chapter 6 of the Foreign Trade Policy 2015-20.
It may be noted that Notification no. 49/2017-Central tax dated 18.10.2017 also lays down the list of evidences which are required to be produced by the supplier of deemed export supplies for claiming refund.
Procedure to be followed in case of Deemed Export supplies
Rule 89 of the CGST Rules, 2017 as amended vide Notification No. 47/2017- Central Tax dated 18.10.2017 allows either the recipient or supplier of such supplies to claim refund of tax paid thereon.
As mention

= = = = = = = =

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

= = = = = = = =

orse the tax invoice and send a copy of the endorsed tax invoice to –
a) the registered supplier;
b) the jurisdictional GST officer in charge of such registered supplier; and
c) its jurisdictional GST officer.
iv. The endorsed tax invoice will be considered as proof of deemed export supplies by the registered person to EOU / EHTP / STP / BTP unit.
v. The recipient EOU / EHTP / STP / BTP unit shall maintain records of such deemed export supplies in digital form, based upon data elements contained in “Form-B” (appended herewith). The software for maintenance of digital records shall incorporate the feature of audit trail. While the data elements contained in the Form-B are mandatory, the recipient units will be free to add or continue with any additional data fields, as per their commercial requirements.
All recipient units are required to enter data accurately and immediately upon the goods being received in, utilized by or removed from the said unit. The digital records should

= = = = = = = =

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

= = = = = = = =

on and Date________________
LOP No. – and valid up to .
GSTIN –
We the, M/s …………….(Name of EOU/EHTP/STP/BTP unit and address) wish to procure the Goods namely(Tariff description, Quantity and value)
-, as allowed under Foreign Trade Policy and Handbook of Procedures 2015-2020, and approved by Development Commissioner from M/s
– (Name of supplier, address and Goods & Services Tax Identification Number(GSTIN)). Such supplies on receipt would be used in manufacturing of goods or rendering services by us. We would also abide by procedure set out in Circular no. dated -.
Signatures of the owner of
EOU/EHTP/STP/BTP unit or
His Authorised officer
To:
1. The GST officer having Jurisdiction over the EOU/EHTP/STP/BTP unit.
2. The GST officer having Jurisdiction over the registered person intending to supply the goods.
3. The registered person intending to supply goods to EOU/EHTP/STP/BTP unit.
FORM – B
Form to be maintained by EOU/EHTP/STP/BTP unit for the receipt, use

= = = = = = = =

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

= = = = = = = =

inputs or input services used in making zero-rated supply of goods or services or both, in case of deemed export supplies on which the supplier has availed the benefit of notification No. 48/2017-Central Tax dated 18.10.2017.
Further Rule 96(9) of the CGST Rules, 2017 as amended vide Notification no. 75/2017-Central Tax dated 29.12.2017 (w.e.f 23.10.2017) also provides that the recipient of deemed export supplies on which the supplier has availed the benefit of notification No. 48/2017-Central Tax dated 18.10.2017 cannot export on payment of integrated tax.
Time Limit for filing refund claim
For obtaining refund the recipient or supplier of deemed export supplies has to file an application in FORM GST RFD-01 through the Common Portal, either directly or through a Facilitation Centre notified by the Commissioner before the expiry of two years from, the date on which the return relating to such deemed export supplies is to be furnished electronically. The application has to be accomp

= = = = = = = =

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

= = = = = = = =

Zero Rating of Supplies in GST
GST Law and Procedure – GST Law and Procedure [January, 2019]
GST
Chapter Twenty Four
Zero Rating of Supplies in GST
Introduction
What is the need for Zero Rating?
As per section 2(47) of the CGST Act, 2017, a supply is said to be exempt, when it attracts nil rate of duty or is specifically exempted by a notification or kept out of the purview of tax (i.e. a non-GST supply). But if a good or service is exempted from payment of tax, it cannot be said that it is zero rated. The reason is not hard to find. The inputs and input services which go into the making of the good or provision of service has already suffered tax and only the final product is exempted. Moreover, when the output is exempted, tax laws do not allow availment/utilisation of credit on the inputs and input services used for supply of the exempted output. Thus, in a true sense the entire supply is not zero rated. Though the output suffers no tax, the inputs and input services ha

= = = = = = = =

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

= = = = = = = =

) supply of goods or services or both to a Special Economic Zone developer or a Special Economic Zone unit.
As already seen, the concept of zero rating of supplies requires the supplies as well as the inputs or input services used in supplying the supplies to be free of GST. This is done by employing the following means:
a) The taxes paid on the supplies which are zero rated are refunded;
b) The credit of inputs/ input services is allowed;
c) Wherever the supplies are exempted, or the supplies are made without payment of tax, the taxes paid on the inputs or input services i.e. the unutilised input tax credit is refunded.
The provisions for the refund of unutilised input credit are contained in the explanation to Section 54 of the CGST Act, 2017, which defines refund as below:
“refund” includes refund of tax paid on zero-rated supplies of goods or services or both or on inputs or input services used in making such zero-rated supplies, or refund of tax on the supply of goods regard

= = = = = = = =

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

= = = = = = = =

rever such supplies are made by using the option of Bond/ LUT. The difference between zero rated supplies and exempted supplies is tabulated as below:
Exempted Supplies
Zero rated Supplies
“exempt supply” means supply of any goods or services or both which attracts nil rate of tax or which may be wholly exempt from tax under section 11 of CGST Act or under section 6 of the IGST Act, and includes non-taxable supply
“zero-rated supply” shall have the meaning assigned to it in section 16
No tax on the outward exempted supplies, however, the input supplies used for making exempt supplies to be taxed
No tax on the outward supplies; Input supplies also to be tax free
Credit of input tax needs to be reversed, if taken;
No ITC on the exempted supplies
Credit of input tax may be availed for making zero-rated supplies, even if such supply is an exempt supply
ITC allowed on zero-rated supplies
Value of exempt supplies, for apportionment of ITC, shall include supplies on which the recip

= = = = = = = =

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

= = = = = = = =

Compensation cess in GST
GST Law and Procedure – GST Law and Procedure [January, 2019]
GST
Chapter Twenty Two
Compensation cess in GST
Introduction:
Goods and Services Tax (Compensation to States) Act, 2017 was enacted to levy Compensation cess for providing compensation to the States for the loss of revenue arising on account of implementation of the goods and services tax with effect from the date from which the provisions of the Central Goods and Services Tax Act is brought into force (01/07/2017), for a period of five years or for such period as may be prescribed on the recommendations of the GST Council.
The compensation cess on goods imported into India shall be levied and collected in accordance with the provisions of se

= = = = = = = =

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

= = = = = = = =

ation cess on supply of goods or services can be utilised only towards payment of the compensation cess on supply of goods or services.
Valuation if Cess to be levied on value:
In case the compensation cess is chargeable on any supply of goods or services or both with reference to their value, then for each such supply, the value has to be determined under section 15 of the Central Goods and Services Tax Act, 2017.
Laws and Rules applicable:
The provisions of the Central Goods and Services Tax Act, 2017 and the rules made thereunder, including those relating to assessment, input tax credit, non-levy, short-levy, interest, appeals, offences and penalties, shall apply in relation to the levy and collection of the cess on the intra-State s

= = = = = = = =

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

= = = = = = = =

Electronic Cash/Credit Ledgers and Liability Register in GST
GST Law and Procedure – GST Law and Procedure [January, 2019]
GST
Chapter Seventeen
Electronic Cash/Credit Ledgers and Liability Register in GST
Introduction:
On the common portal each registered taxpayer will have one electronic register called the Electronic liability register and two electronic ledgers namely Electronic Cash Ledger and Electronic Credit Ledger. These register and ledgers will reflect the amount of tax payable, the amount available to settle the tax liability online, and input credit balance. This is a handy tool provided in the GST system wherein the registered taxpayer can have information about his liabilities and credits at a single location which can be viewed from any place by simply logging into the common portal. Electronic liability register, electronic cash ledger and electronic credit ledger of taxpayer will be updated on generation of GSTR-3 by the taxpayer. A unique identification n

= = = = = = = =

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

= = = = = = = =

payments made against the same will be recorded in this part of the register. Liabilities due to opting for composition and cancellation of registration will also be covered in this part. Such liabilities shall be populated in the liability register of the tax period in which the date of application or order falls, as the case may be.
Part II will be for maintaining the complete description of the transactions of all liabilities accruing, other than return related liabilities. Such other liabilities may include the following:
* Liabilities due to reduction or enhancement in the amount payable due to decision of appeal, rectification, revision, review etc.;
* Refund of pre-deposit that can be claimed for a particular demand if appeal is allowed;
* Payment made against the show cause notice or any other payment made voluntarily;
* Reduction in amount of penalty (which would be automatically shown) based on payment made after show cause notice or within the time specified in the

= = = = = = = =

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

= = = = = = = =

such supplies is to be collected by the operator;
* the amount payable on reverse charge basis;
* the amount payable under the Composition levy scheme;
* amount payable towards interest, penalty, fee;
* Any other amount under the GST Act.
Any amount of demand debited in the electronic liability register shall stand reduced to the extent of relief given by the appellate authority or Appellate Tribunal or court and the electronic liability register shall be credited accordingly. The amount of penalty imposed or liable to be imposed shall stand reduced partly or fully, as the case may be, if the taxable person makes the payment of tax, interest and penalty specified in the show cause notice or demand order and the electronic liability register shall be credited accordingly.
Electronic cash ledger:
Every deposit made by a person by internet banking or by using credit or debit cards or National Electronic Fund Transfer (NEFT) or Real Time Gross Settlement (RTGS) or by over the c

= = = = = = = =

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

= = = = = = = =

nternet Banking through authorised banks;
ii. Credit card or Debit card through the authorised bank;
iii. NEFT or RTGS from any bank; or
iv. Over the Counter payment through authorised banks for deposits up to ₹ 10,000/- per challan per tax period, by cash, cheque or demand draft.
When the payment is made by way of NEFT or RTGS mode from any bank, the mandate form shall be generated along with the challan on the common portal and the same shall be submitted to the bank from where the payment is to be made. The mandate form shall be valid for a period of fifteen days from the date of generation of challan.
On successful credit of the amount to the concerned government account maintained in the authorised bank, a Challan Identification Number (CIN) shall be generated by the collecting bank and the same shall be indicated in the challan.
On receipt of the CIN from the collecting bank, the said amount shall be credited to the electronic cash ledger of the person on whose beha

= = = = = = = =

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

= = = = = = = =

17.
Electronic credit ledger:
The electronic credit ledger shall be maintained in FORM GST PMT-02 for each registered person eligible for input tax credit on the common portal and every claim of input tax credit will be credited to this ledger. The amount available in the electronic credit ledger can be used for making any payment towards output tax.
In case a registered person has claimed refund of any unutilized amount from the electronic credit ledger in accordance with the provisions of section 54, the amount to the extent of the claim shall be debited in the said ledger. If the refund so filed is rejected, either fully or partly, the amount debited to the extent of rejection, shall be recredited to the electronic credit ledger by the proper officer by an order made in FORM GST PMT-03.
Unless otherwise allowed, entries will not be allowed to be made directly in the electronic credit ledger under any circumstance.
Manuals, Ready reckoner, Law and practice, Reference Guide, Qu

= = = = = = = =

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

= = = = = = = =

Introduction of Composition Scheme in GST
Composition Scheme – GST Ready Reckoner
GST
Composition Levy Scheme in GST
1. Overview of the Scheme
The composition levy is an alternative method of levy of tax designed for small taxpayers whose turnover is up to Rs. 1.5 Crores (Rs. 75 lakhs in case of special category state). The objective of composition scheme is to bring simplicity and to reduce the compliance cost for the small taxpayers. Moreover, it is optional and the eligible person opting to pay tax under this scheme can pay tax at a prescribed percentage of his turnover every quarter, instead of paying tax at normal rate.
2. Benefits of composition scheme
* Easy compliance as no elaborate accounts and records to be maintain

= = = = = = = =

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

= = = = = = = =

recipient on supplies made by him nor shall he be entitled to any credit of input tax.
* If the proper officer has reasons to believe that a taxable person has paid tax under section 10(1) despite not being eligible, such person shall, in addition to any tax that may be payable by him under any other provisions of this Act, be liable to a penalty and the provisions of section 73 or section 74 shall apply for determination of tax and penalty.
Important Notification & Circular
* Proper officer for provisions relating to Registration and Composition levy under the Central Goods and Services Tax Act, 2017 or the rules made thereunder. [ Circular No.1/1/2017 dated 26.06.2017 ]
Manuals, Ready reckoner, Law a

= = = = = = = =

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

= = = = = = = =

Concept of Aggregate Turnover in GST
Registration – GST Ready Reckoner
GST
Aggregate Turnover
Concept of Aggregate Turnover in GST
* Turnover, in common parlance, is the total volume of a business. The term 'aggregate turnover' has been defined in GST law as under:
Aggregate Turnover [ As per section 2(6) of CGST Act, 2017 ]
Aggregate turnover is computed on all India basis for a person having same Permanent Account Number (PAN). It is sum of value of all outward supplies falling in the following four categories:
* Taxable supplies
* Exempt supplies
* Exports of goods or services or both
* Inter-state supplies.
but excludes
* the value of inward supplies on which tax is payable by a person on reverse charge basis

= = = = = = = =

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

= = = = = = = =

ed u/s 2(78); such as, specified petroleum goods and alcoholic liquor for human consumption.
* However, registered person, who is engaged in making any supply of goods which are non taxable(i.e. petroleum product & alcoholic liquor for human consumption) under this act who is not eligible to opt for composition scheme.
"Turnover in state" or "Turnover in union territory"
* "Turnover in state" or "Turnover in union territory" means the aggregate value of
* all taxable supplies (excluding the value of inward supplies on which tax is payable by a person on reverse charge basis),
* exempt supplies made with in s state or union territory by a taxable person,
* export of goods or services or bo

= = = = = = = =

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

= = = = = = = =

GST on advances received for future supplies
GST Law and Procedure – GST Law and Procedure [January, 2019]
GST
Chapter Six
GST on advances received for future supplies
Time of supply determines when the taxpayer is required to discharge tax on particular supply. Time of supply provisions are governed by Section 12 to 14 of the CGST Act, 2017. As per the said provisions, the time of supply is determined with reference to the time when the supplier receives payment with respect to the supply as well as a few other references like issue of invoice, receipt of goods etc.
In general, the time of supply is earliest of issuance of invoice or receipt of payment. Therefore, in case of advance received for any supply, time of supply is fixed at the point when advance is received, irrespective of the fact whether the supply is made or not. Accordingly, GST needs to be paid with reference to the time at which advance is received, if any, and this requires compliances with a few procedu

= = = = = = = =

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

= = = = = = = =

overnment has come out with Notification no. 66/2017 dated 15.11.2017, whereby all suppliers of goods who have not opted for composition scheme, have been exempted from the burden of paying GST on Advances received. For such categories of taxpayers, time of supply would arise only at the time of issue of invoice and they need to discharge GST liability accordingly. But the supplier of services are required to pay GST at the time of receipt of advances.
Many of the goods which were in the highest tax bracket of 28% have been brought down to the 5/12/18% bracket after the decision of the GST Council in its meeting held on 10.11.2017. Notification no. 41/2017-Central Tax (Rate) dated 14.11.2017 has also been issued giving effect to the revised rates. It may so happen that advances were given when the rate was 28% and the supplier has paid tax on it. Subsequently the rate has been reduced to say 18%. Now, assuming supply happened after the change in tax rate and the invoice for the same w

= = = = = = = =

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

= = = = = = = =

ST is to be paid at the time of receipt of advances.
Nature of Supply and Tax rate (RULE 50):
 Nature  of Supply is not Determinable
     (i) It should be treated as inter state supply & GST should be paid accordingly.
     (ii)Tax rate should be taken as 18%.
Compliances under GST:
As per Section 31 (3) (d) of the CGST Act, 2017, a registered person shall, on receipt of advance payment with respect to any supply of goods or services or both, issue a receipt voucher or any other document, containing such particulars as may be prescribed, evidencing receipt of such payment;
The receipt voucher shall contain the particulars as contained in Rule 50 of the CGST Rules, 2017 which are as follows:
a) name, address and Goods and Services Tax Identification Number of the supplier;
b) a consecutive serial number not exceeding sixteen characters, in one or multiple series, containing alphabets or numerals or special characters hyphen or

= = = = = = = =

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

= = = = = = = =

where at the time of receipt of advance, if the rate of tax is not determinable, the tax shall be paid at the rate of 18% and if the nature of supply is not determinable, the same shall be treated as inter-State supply and GST should be paid accordingly.
Once an advance payment has been made and a receipt voucher has also been issued, there may be situations wherein the supply is subsequently not made and the amount of advance is to be refunded back. There could be multiple situations. One is that no tax invoice is issued till then. In that case, the advance taken can be refunded and a refund voucher need to be issued in such cases. However, if tax invoice has already been issued, credit note will have to be issued in order to square off the transaction. Credit Note can be issued in terms of the provisions contained in Section 34 of the Act ibid read with Rule 54 of the Rules ibid.
As per Section 31 (3) (e) ibid, where, on receipt of advance payment with respect to any supply of good

= = = = = = = =

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

= = = = = = = =

ds or services in respect of which refund is made; (g) amount of refund made;
g) rate of tax (central tax, State tax, integrated tax, Union territory tax or cess);
h) amount of tax paid in respect of such goods or services (central tax, State tax, integrated tax, Union territory tax or cess);
i) whether the tax is payable on reverse charge basis; and
j) signature or digital signature of the supplier or his authorised representative.
As per Rule 56(3) of the Rules ibid, every registered person shall keep and maintain a separate account of advances received, paid and adjustments made thereto.
Table 11 of GSTR 1: Consolidated Statement of Advances Received/Advance adjusted in the current tax period/ Amendments of information furnished in earlier tax period: Rate wise and intra/interstate wise
Table 11A of FORM GSTR-1 captures information related to advances received, rate-wise, in the tax period and tax to be paid thereon along with the respective place of supply (POS). Table 1

= = = = = = = =

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

= = = = = = = =

tax payable by him, an amount calculated at such rate as may be prescribed, but not exceeding,
(a) one per cent of the turnover in State or turnover in Union territory in case of a manufacturer or trader,
(b) two and a half per cent of the turnover in State or turnover in Union territory in case of persons engaged in making supplies referred to in clause (b) of paragraph 6 of Schedule II, and subject to such conditions and restrictions as may be prescribed.
The provisions of Section 10 are subject to Section 9(3) & (4) which would mean that the composition dealer will have make necessary compliances on account of reverse charge supplies (apart from payment of tax u/s 10 at the prescribed rate on his outward supplies). It may, however, be noted that provisions of Section 9(4) of the Act ibid has been suspended till 31.03.2018 vide Notification no.38/2017-Central Tax (Rate) dated 13.10.2017. Section 10 of the Act ibid also suggests that a composition dealer has to pay, in lieu of tax

= = = = = = = =

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

= = = = = = = =

.
A combined reading of the above provisions would indicate that a composition dealer will not have to pay any tax on advances received, if such advances pertain to his outward supplies. The advances received and goods returned do not form part of taxable supplies and do not form part of the turnover in a state at the end of the quarter (tax period) for the purpose of computing turnover in a state.
Obligation of taxpayer when an advance is received?
* Issue a Receipt voucher to the person paying advance. The receipt voucher will contain details like amount of advance, the rate of tax applicable, description of goods or services, etc.
*
Calculate Tax on Advance received and pay tax while filing the return for the month. The advance received should be grossed up. This means that advance received is considered inclusive of GST – When the rate of tax cannot be determined during receipt of advance GST @ 18% has to be charged – Also if the point of sale

= = = = = = = =

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

= = = = = = = =

Cancellation or Suspension of Registration in GST [ Section 29 ]
Registration – GST Ready Reckoner
GST
Cancellation or Suspension of Registration in GST
Introduction:
The registration granted under GST can be cancelled for specified reasons. The cancellation can either be initiated by
* The department on their own motion; or;
* The registered person can apply for cancellation of their registration.
* In case of death of registered person, the legal heirs can apply for cancellation.
Reason for cancellation ( Section 29 of the CGST Act )
The registration can be cancelled for the following reasons:
1) Voluntary Cancellation of Registration :- Registration Certificate may be cancelled based, either on his own motion or on an application filed by the registered person or by his legal heirs, in case of death of such person, cancel the registration
* (a) The business has been
* Discontinued, or
* transferred fully for any reason including death of

= = = = = = = =

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

= = = = = = = =

;
* furnishes the details of outward supplies in FORM GSTR-1 , [as amended in FORM GSTR-1A(Inserted vide N.N. 12/2024 dated 10.07.2024) ] under section 37 for one or more tax periods which is in excess of the outward supplies declared by him in his valid return under section 39 for the said tax periods;
* being a registered person required to file return u/s 39 for each month or part thereof, or for each quarter or part thereof has not furnished returns for a continuous period of six months or two tax quarter.
* a person paying tax under section 10 has not furnished the return for a financial year beyond 3 months from the due date of furnishing the said return.
* any person who has taken voluntary registration has not commenced business within six months from the date of registration;
* registration has been obtained by means of fraud, willful misstatement or suppression of facts.
* violates the provisions of third or fourth prov

= = = = = = = =

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

= = = = = = = =

ted 10.07.2024)] or
* such other analysis, as may be carried out on the recommendations of the Council.
* b) Violates the provision of rule 10A, regarding furnishing bank details with in 30 days, after granting registration certificate,
* c) The registration of such person shall be suspended and the said person shall be intimated in FORM REG-31, electronically, on the common portal, or by sending a communication to his e-mail address provided at the time of registration or as amended from time to time, highlighting the said differences,
* anomalies or non-compliances and asking him to explain, within a period of 30 days, as to why his registration shall not be cancelled. [ Rule 21A(2A) ]
3) Suspension of Registration 
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 under rule 21A of GST Rules. [I

= = = = = = = =

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

= = = = = = = =

n the following cases 
* a) Where; 
* a comparison of the returns furnished by a registered person under section 39 with the details of outward supplies furnished in FORM GSTR-1, [as amended in FORM GSTR-1A(Inserted vide N.N. 12/2024 dated 10.07.2024) ]; or
* the details of inward supplies derived based on the details of outward supplies furnished by his suppliers in their FORM GSTR-1,[as amended in FORM GSTR-1A(Inserted vide N.N. 12/2024 dated 10.07.2024) ] or
* such other analysis, as may be carried out on the recommendations of the Council.
* b) Violates the provision of rule 10A, regarding furnishing bank details with in 30 days, after granting registration certificate,
* c) The registration of such person shall be suspended and the said person shall be intimated in FORM GST REG-31, electronically, on the common portal, or by sending a communication to his e-mail address provided at the time of registration or as am

= = = = = = = =

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

= = = = = = = =

le may be revoked by the proper officer,
* anytime during the pendency of the proceedings for cancellation, if he deems fit.
* Where the registration has been suspended under rule 21A(2A) for contravention of the provisions contained in section 29(2)(c) or (b) and the registration has not already been cancelled by the proper officer under rule 22,
* the suspension of registration shall be deemed to be revoked upon furnishing of all the pending returns.
* Where the registration has been suspended under rule 21(2A) for contravention of provisions of rule 10A and the registration has not already been cancelled by the proper officer under rule 22,
* the suspension of registration shall be deemed to be revoked upon compliance with the provisions of rule 10A.
* Where any order having the effect of revocation of suspension of registration has been passed, the provisions of Section 31(3)(a) and section 40 in respect of the supplies made during the period of suspension and

= = = = = = = =

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

= = = = = = = =

of suspension of registrations under rule 21A(2A) of CGST Rules, 2017. [ Circular No. 145/01/2021-GST dated 11.02.2021]
* Clarification in respect of issues under GST law for companies under Insolvency and Bankruptcy Code, 2016. [ Circular No.134/04/2020-GST dated 23.03.2020 ]
* For the Covid period – it is hereby clarified that for the purpose of calculating the period of thirty days for filing application for revocation of cancellation of registration under section 30(1) of the CGST Act for those registered persons who were served notice under clause (b) or clause (c) of sub-section 29(2) in the manner as provided in clause (c) or clause (d) of sub-section 169(1) and where cancellation order was passed up to 12th June, 2020, the later of the following dates shall be considered:-
a) Date of service of the said cancellation order; or
b) 31st day of August, 2020. [CGST (Removal of Difficulties) Order, 2020 – Order No. 01/202

= = = = = = = =

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

= = = = = = = =

CENTRAL SCHOOL EXEMPTION
Query (Issue) Started By: – MUSKAN AGARWAL Dated:- 23-1-2019 Last Reply Date:- 26-1-2019 Goods and Services Tax – GST
Got 8 Replies
GST
IF A CENTRAL SCHOOL IS SERVICE RECEIVER OF FINANCE SERVICE.
SO CENTRAL SCHOOL IS EXEMPT FOR GST APPLICATION OR NOT
Reply By KASTURI SETHI:
The Reply:
Dear Querist, . Who is service provider ? I mean to say constitution of the service provider.
Reply By MUSKAN AGARWAL:
The Reply:
BUT ALL THE SCHOOLS HAVE NOT ANY GST REGISTRATION NUMBER SO WE HAVE NOT RAISE ANY GST BILL .
Reply By Mahadev R:
The Reply:
Question could be elaborated. Not very clear.
Reply By DR.MARIAPPAN GOVINDARAJAN:
The Reply:
Your query is not clear. Who is the service provider? Don't see o

= = = = = = = =

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

= = = = = = = =

provided to an educational institution. Financial services are not under Reverse Charge Mechanism. These are under Forward Charge Mechanism. So Service Provider/supplier is required to get itself registered under GST Act and collect GST from the educational institution. School is not required to get itself registered. Rightly advised by Sh.Ganeshan Kalyani Ji.
Relevant extract of notification no.12/17-CT(Rate) dated 28.6.17 as amended.
66
Heading 9992
Services provided –
(a) by an educational institution to its students, faculty and staff;
Nil
Nil
(b) to an educational institution, by way of,-
(i) transportation of students, faculty and staff;
(ii) catering, including any mid-day meals scheme sponsored by the Central Government,

= = = = = = = =

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

= = = = = = = =

Procedure for sales returns in the case of supply to SEZ units
Query (Issue) Started By: – Srinivasa Varadan Dated:- 23-1-2019 Last Reply Date:- 28-1-2019 Goods and Services Tax – GST
Got 2 Replies
GST
Pl. give the procedure for sales returns in the case of supply to SEZ units.
Reply By YAGAY andSUN:
The Reply:
48. Procedure for Sale in Domestic Tariff Area – (1) Domestic Tariff Area buyer shall file Bill of Entry for home consumption giving therein complete description of the goods and/or service namely, make and model number and serial number and specification along with invoice and packing list with the Authorised Officers:
Provided that the Bill of Entry for home consumption may also be filed by a Unit on the basis of au

= = = = = = = =

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

= = = = = = = =

Is RCM payable under GST on arbitrary fees paid
Query (Issue) Started By: – RAJAGOPAL OBBAI Dated:- 23-1-2019 Last Reply Date:- 26-1-2019 Goods and Services Tax – GST
Got 3 Replies
GST
Is GST applicable under RCM if fees is paid to a retired judge appeared arbitrary case
Reply By Mahadev R:
The Reply:
Services provided by an individual advocate including a senior advocate or firm of advocates by way of legal services to business entity would be liable. Please refer notification no

= = = = = = = =

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

= = = = = = = =

GST on Used Cars
By: – Akshay Hiregange
Goods and Services Tax – GST
Dated:- 23-1-2019

Introduction:
Since one and half year from date of implementation of GST, there are several confusions regarding rate of tax applicable on sale of motor vehicles. In this article I would like to throw some light on changes on GST implications on sale of old/used vehicles.
In this article we would aim to cover:
* General Classification
* GST Rate changes (including abatement)
* Exemption from URD purchases
* Valuation
* Illustrations
* FAQs
* Upcoming/related GST updates
General Classification of Motor Vehicle:
HSN
Description
Specimen
8702
Motor vehicles for the transport of ten or more persons, including the driver
Passenger Bus, Tempo travellers
8703
Motor cars and other motor vehicles principally designed for the transport of persons (other than those of heading 8702
Diesel and Petrol Cars, Electric cars, Ambulance, Three wheeled motor vehicles
8704
Moto

= = = = = = = =

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

= = = = = = = =

r 87, which have varied rates.
This would provide relief to the persons dealing in the buying and selling of motor vehicles. Although, it would also help reduce the impact for a registered person who is selling the motor vehicle being a fixed asset.
Conditions for claiming such rates & exemptions:
* Where depreciation claimed under Income tax, margin shall be calculated as consideration received (-) depreciated value of goods as on date of supply. Here, it is important to note, that although Income Tax required depreciation to be calculated on the asset block, the rate is required to be applied for the specific motor vehicle, upto the date the supply.
* The credits under GST or erstwhile laws have not been claimed. (GST, VAT, ED, ST)
Changes of GST Cess rate over a period of time
In case of motor vehicles even the rate of GST compensation cess has undergone many changes from initial compensation cess notification no. 01/2017- Compensation cess (Rate) vide notification no. 05/20

= = = = = = = =

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

= = = = = = = =

bove. [Added as per notification no.5/2017 Compensation cess (rate)]
NIL
15%
NIL
All other rates in notification 01/2017 remain same – GENERAL
4
Petrol, Liquefied petroleum gases (LPG) or compressed natural gas (CNG) driven motor vehicles of engine capacity not exceeding 1200cc and of length not exceeding 4000 mm.
1%
1%
NIL
Petrol Vehicles with said parameters
5
Diesel driven motor vehicles of engine capacity not exceeding 1500 cc and of length not exceeding 4000 mm.
3%
3%
NIL
Diesel Vehicles with said parameters
Serial no. 52 in 01/2017 is substituted for below (only 8703):
6
For other than above vehicles engine capacity not exceeding 1500cc
15%
17%
NIL
Generally, Petrol vehicles between 1200 – 1500 cc
7
Vehicles exceeding 1500cc known as SUVs.
Explanation of SUVs – Includes a motor vehicle of length exceeding 4000mm and having ground clearance of 170 mm. and above.
15%
22%
NIL
If declared as SUV, also need to check ground clearance
8
For other than ab

= = = = = = = =

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

= = = = = = = =

conditions, a registered person who is dealing in second hand sale of motor vehicle (which is falling under chapter 87) could claim the abatement of 35% of value of taxable supplies and pay GST on only 65% of value of supply of such motor vehicle.
Note: This notification would become redundant (for other than leasing entity), due to notification 8/2018 Central Tax (Rate) & 1/2018 Compensation Cess (Rate).
Exemption notification for purchase of old and used cars:
In terms of Notification no. 10/2017 – Central Tax (Rate) & 4/2017 Compensation cess (Rate) dated 01/07/2017, exempts intra state purchase of second-hand goods from an unregistered person (sec 9(4) of CGST Act) by a registered person, dealing in buying and selling of second-hand goods as per section 32(5) of CGST Act 2017.
Comments:
* As per the above notification the exemption benefit can be availed by the dealer (who are into buying and selling of second-hand goods) when motor vehicle is purchased from the unregistered

= = = = = = = =

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

= = = = = = = =

through Illustrations:
Mr. Pradeep (car dealer) is into the buying and selling of old and used cars situated in Karnataka. He purchased a petrol car which is having engine capacity 1498cc and 3998mm on 02/07/2017 for a price of ₹ 4, 00,000 from an unregistered person who is also located in the same state. After minor changes/additions to the car, Pradeep sold the car for ₹ 6, 00,000.
Sale value
6,00,000
Purchase value
4,00,000
Margin
2,00,000
Scenario 1: Sale of old and used car on or before 12/10/2017:
In terms of Rule 32(5) of CGST Rules 2017, GST is to be paid on the Margin i.e. ₹ 2,00,000 + GST at the rate of 45% (i.e. 28% +17%) which amounts to ₹ 90,000 (Rs. 2,00,000*45%).
Scenario 2: Sale of old and used car after 13/10/2017:
In this scenario the assessee has an option to avail the benefit of notification no.37/2017 CT(R) & 38/2017 IT(R) provides an abatement of 35% of taxes, computation is as follows:
Sl. no.
Particulars
Amount
*
Taxable

= = = = = = = =

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

= = = = = = = =

can avail the benefit of 08/2018 CT(R) and 1/2018 CC(R) the computation as per below.
The above notification renders Rule 32(5) and notification no.37/2017 (condition 2) redundant in such scenario.
SI.No.
Particulars
Amount
A
Margin
2,00,000
B
CGST (A*9%)
18,000
C
SGST (A*9%)
18,000
D
Cess
NIL
Total tax liability
36,000
The liability has significantly reduced from ₹ 90,000 to ₹ 36,000 from the time when GST was implemented to January 2018.
FAQ's related to supply of old and used cars:
* Whether GST liability on margin can be discharged inclusive basis i.e. margin inclusive of GST?
No, in terms of Rule 32(5) of CGST Rules, GST needs to be charged on margin (i.e. sale price – purchase price).
Whether services provided by the second-hand car dealer could be considered as intermediary service?
* In terms of Section 2(13) of IGST Act, “Intermediary” means a broker, an agent or any other person, by whatever name called, who arranges or facilitates the s

= = = = = = = =

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

= = = = = = = =

y the supplier.”
* Accordingly, TCS collected should be included in the taxable value.
* Hon'ble Kerala High Court in the case of SN Automobiles Private Limited vs. UOI & CBIC has stayed the imposition of GST on TCS collected.
* It is important to note Circulars issued by the department are not binding the assessee, but are binding on the department.
Whether dealers can avail the ITC on old and used cars purchased from the registered tax payers?
* Generally, car dealers work based on margin earned on sale, therefore, they would opt for concessional tax rates and valuation as provided under notification no. 08/2018 CT(R) and similar notifications.
* If the dealers are not availing any exemption through the notifications, he would require to discharge GST on entire sale value at full tax rate, wherein he can avail the ITC on purchase of old and used car.
Whether a car dealer can avail the concessional rate benefit for demo cars?
The Demo car is used for the purpose of tes

= = = = = = = =

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

= = = = = = = =

M/s. R.S. Granite Machine Tools Pvt. Ltd. Versus The Commissioner of GST & CE (Chennai-North)
Service Tax
2019 (1) TMI 1179 – CESTAT CHENNAI – TMI
CESTAT CHENNAI – AT
Dated:- 23-1-2019
Appeal No. ST/42302/2018 – FINAL ORDER NO. 40155/2019
Service Tax
Shri P. Dinesha, Member (Judicial)
Shri P.C. Anand, Consultant, for the Appellant
Shri L. Nandakumar, AC (AR) for the Respondent
ORDER
A Show Cause Notice (SCN) dated 31.05.2017 was issued covering the periods October, 2014 to March, 2016 alleging interalia that the commission received by the appellant from the appellant's service recipients located outside India, was liable to service tax as per the amended Rule 2 (f) of the Places of Provisions of Services Rules, 2012 (POPS) w.e.f. 01.10.2014. After considering the explanation filed by the assessee, the adjudicating authority vide Order-in-Original No. 6/2018 dated 05.02.2018 confirmed the proposed demand and consequently appropriated the payments made towards

= = = = = = = =

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

= = = = = = = =

d not include a person providing the main service.
* Appellant's main and only service is obtaining orders from the Indian customers and passing on the same to the foreign manufacturer/appellant's Principals
* The words 'supply of goods' inserted post amendment is not in addition to the facilitation of a service since, there is 'or' in between.
* Right from the beginning, facilitating the provision of service by identifying the Indian customers and obtaining orders is the only and main service of the appellants.
* The extract of education guide published by CBEC made it further clear that a commission agent who buys and sells goods is not an intermediary.
* Rule 3 of the POPS makes it clear that the place of provision of service shall be the location of the service recipient whereas Rule 9 ibid prescribes the place of provision of specified services in the nature of intermediary services is that of the location of the service provider, etc.
He also relied on the following ca

= = = = = = = =

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

= = = = = = = =

s a provision of a service (hereinafter called the 'main' service) or a supply of goods, between two or more persons, but does not include a person who provides the main service or supplies the goods on his account'”.
4.2 It is not the case of the Revenue that the appellant arranges or facilitates other services as well, in addition to the above, to its 'Principals' nor is the case of the Revenue that the appellant had suppressed the provision of any other service. The Revenue has also nowhere disputed the above service rendered by the appellant, ie., procuring/obtaining orders for its Principals located outside the taxable territory, for which the commission is paid by its Principals as also the fact of that obtaining orders from the Indian customers is the main and the only service rendered by the appellant. I find the above service is a taxable service but for the fact that it is an export of service and the same stood exempted for all the preceding years. This fact is also vouched

= = = = = = = =

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

= = = = = = = =

n 46/2016-Service Tax
(c) Intermediary services:
(d) Service consisting of hiring of means of transport other than, – (i) aircrafts, and (ii) vessels except yachts upto a period of one month.”
4.4 On perusal of the above Rules, I find that Rule 3 is the general Rule whereas, Rule 9 is specific and also covers 'intermediary service'. Therefore, if the service of the appellant herein is held to be that of intermediary services, then Rule 9 will automatically apply. If not, Rule 3 will apply. Rule 2 (f) excludes the services of intermediary if the person whose main service is arranging or facilitating a provision of service, which also stands automatically excluded from the purview of Rule 9 and thus would fall under Rule 3.
5. The facts of the case as analysed elsewhere in this order, make it clear that obtaining/procuring order for its foreign Principals is the main service rendered by the appellant and consequently, rigors Rule 9 vis-à-vis Rule 2 (f) are not applicable. In v

= = = = = = = =

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

= = = = = = = =

M/s. V. Stephen Versus The Commissioner of GST & CE (Chennai-South)
Service Tax
2019 (1) TMI 1180 – CESTAT CHENNAI – TMI
CESTAT CHENNAI – AT
Dated:- 23-1-2019
Appeal No. ST/42129/2018 – FINAL ORDER No. 40154/2019
Service Tax
Shri P. Dinesha, Member (Judicial)
Shri R. Viswanathan, CA for the Appellant
Shri L. Nandakumar, AC (AR) for the Respondent
ORDER
Service tax was sought to be recovered by the Revenue vide the Show Cause Notice (SCN) dated 23.03.2017, alleging that the assessee claiming to be covered under Notification No. 17/2011-ST dated 01.03.2011 did not furnish declaration in Form A-1 for claiming the benefit of exemption in terms of the above Notification. Vide Order-in-Original dated 18.01.2018, the ex

= = = = = = = =

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

= = = = = = = =

ted at Special Economic Zone (SEZ) and hence the services were consumed within the SEZ. It is the case of the appellant that during the impugned period, he rendered services to M/s. Perlos Telecommunication & Electronics Components India Pvt. Ltd. (in short M/s. Perlos) situated at M/s. Nokia Telecom Special Economic Zone-SEZ, Kancheepuram; that M/s. Perlos had closed its business for which reason the appellant could not obtain Form A1; etc.
4.1 I find the issue of providing service and the service being consumed at SEZ is not in dispute and it is also undisputed that the service recipient viz. M/s. Perlos closed down its business and hence, Form A1 could never be obtained and hence non-furnishing of Form A1 is not deliberate, which was be

= = = = = = = =

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

= = = = = = = =

Industrial Filters & Fabrics P. Ltd. Versus CGST & C.E., Indore
Central Excise
2019 (1) TMI 1426 – CESTAT NEW DELHI – TMI
CESTAT NEW DELHI – AT
Dated:- 23-1-2019
Excise Appeal No. E/52849/2018 [SM] – FINAL ORDER No. 50106/2019
Central Excise
MRS. RACHNA GUPTA, MEMBER (JUDICIAL)
Present for the Appellant: Ms. Priyanka Goel, Advocate
Present for the Respondent: Ms. Tamana Alam, DR
ORDER
PER: RACHNA GUPTA
The present appeal has been preferred against the order in appeal No. 188-18-19 dated 28.06.2018. The adjudication is with respect to the Show Cause Notice (SCN) No. 2542 dated 27.09.2017. The appellant herein are engaged in manufacture of filter bags and are also are availing cenvat credit under Cenvat Credit Rules, 2004. During the course of audit of records for the year 2015-16, the Department observed that the appellant had taken input credit of Rs. 4,53,909/- wrongly on the invoices which were more than one year old. Resultantly, the said cenvat credit

= = = = = = = =

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

= = = = = = = =

submitted that Commissioner (Appeals) in the Order under challenge has made a wrong observation that the appellant has failed to produce any evidence to suffice that entry record receipt of inputs made prior the date of Notification and that the said material was received prior to the Notification as the invoices relied upon by the appellant only are the sufficient proof for the fact that material was also received prior the date of said Notification. Order under challenges, is therefore, prayed to be set aside. Appeal is prayed to be allowed.
3. Per contra Ld. AR, Ms. Tamana Alam has justified the order impressing upon para 7.2 thereof. It is submitted that the Commissioner has not disputed the fact that the invoices are issued prior the date of Notification but the relief has been declined for want of the relevant documents/ evidence. Order is therefore sustainable and appeal deserves dismissal.
4. After hearing both the parties and perusing the record, I observe that the SCN has

= = = = = = = =

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

= = = = = = = =

g received on the date of invoice itself. All the four invoices are issued prior 01.09.2014 i.e. prior date when for the first time the concept of limitation for availing credit was introduced. The findings of Commissioner(Appeals) are therefore apparently wrong while observing that the evidence about receipt of material is missing on record. The order is definitely liable to be set aside. Finally, I draw my support from the decision of the coordinate bench in the case of C.C.E., Vishakapatnam as relied upon by the appellant. Tribunal has observed and held as follows:
On the second point as to whether the relevant date for effect of the notification placing the time limit is the date of invoice or the date on which credit has been taken, I find that Tribunal in the case of Suryadev Alloys & Power Pvt. Ltd (supra) and Indian Potash Ltd. (supra) and Voss Exotech Automotive Pvt. Ltd. has held that the date of the invoice has to be after 01.09.2014 for limitation of six months to apply. I

= = = = = = = =

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

= = = = = = = =

M/s. Jeyyam Global Foods (P) Ltd., Versus Union of India, Through its Secretary (Revenue), Ministry of Finance, and Others
GST
2019 (2) TMI 124 – MADRAS HIGH COURT – 2019 (21) G. S. T. L. 465 (Mad.) , [2019] 64 G S.T.R. 129 (Mad)
MADRAS HIGH COURT – HC
Dated:- 23-1-2019
WP(MD)No. 937 of 2019 and WMP(MD)Nos. 764 & 765 of 2019
GST
MR. G.R. SWAMINATHAN J.
For Petitioner: Mr. S. Jaikumar
For Respondents: Mr. P. Dharmaraj for R1 Mr. Vijayakarthikeyan for R2 &R3 Mr. Aayiram K. Selvakumar Additional Government Pleader for R4
ORDER
The petitioner is a manufacturer of dried chick peas, gram flour, pulses and grams. The petitioner's claim is that they purchase chick peas, dry them by heating them to a certain degree and the resultant product is known as “Dried Chick Peas”.
According to the petitioner, this would have to be classified only under Chapter 0713 of HSN. The petitioner had transported the dried chick peas from Salem to Dindigul. The petitioner had not fi

= = = = = = = =

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

= = = = = = = =

as not open to the Squad Officer to have done so.  
3. Heard the learned counsel on either side. The contesting respondent is only the fourth respondent. The fourth respondent official appeared in person and assisted this Court. He also filed a detailed counter affidavit.
4. According to the fourth respondent, he is statutorily empowered under Section 68 r/w Section 129 of the Tamil Nadu Goods and Services Tax Act, 2017. Section 68 of the said Act reads as under :
“Section 68 (1) : The Government may require the person in charge of a conveyance carrying any consignment of goods of value exceeding such amount as may be specified to carry with him such documents and such devices as may be prescribed.
(2) The details of documents required to be carried under sub-section (1) shall be validated in such manner as may be prescribed.
(3) Where any conveyance referred to in sub-section (1) is intercepted by the proper officer at any place, he may require the person in charge of the sa

= = = = = = = =

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

= = = = = = = =

goods comes forward for payment of such tax and penalty;
(b) on payment of the applicable tax and penalty equal to the fifty per cent. of the value of the goods reduced by the tax amount paid thereon and, in case of exempted goods, on payment of an amount equal to five per cent. of the value of goods or twenty five thousand rupees, whichever is less, where the owner of the goods does not come forward for payment of such tax and penalty;
(c) upon furnishing a security equivalent to the amount payable under clause (a) or clause (b) in such form and manner as may be prescribed: Provided that no such goods or conveyance shall be detained or seized without serving an order of detention or seizure on the person transporting the goods.”
5. The stand of the fourth respondent is that he is entitled to call upon the person in charge of the conveyance to produce the documents in question for verification. In the present case, there is no dispute as to the goods that were actually transporte

= = = = = = = =

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

= = = = = = = =

for consideration before the Hon'ble Kerala High Court in the decision reported in 2018 (11) TMI 1503 (N.V.K. Mohammed Sulthan Rawther and Sons and Willson Vs. Union of India). The Hon'ble Kerala High Court held that in such cases at best the inspecting authority can alert the assessing authority to initiate the proceedings “for assessment of any alleged sale, at which the petitioner will have all his opportunities to put forward his pleas on law and on fact.” The process of detention of the goods cannot be resorted to when the dispute is bona fide, especially, concerning the exigibility of tax and, more particularly, the rate of tax.  
8. I am in full agreement with the aforesaid enunciation of law laid down by the Hon'ble Kerala High Court. Here, a bonafide dispute with regard to the classification has arisen between the transporter of goods and the squad officer. I am of the view that the squad officer can intercept the goods, detain them for the purpose of prepar

= = = = = = = =

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

= = = = = = = =

e matter cannot rest there. The learned counsel for the writ petitioner would strongly press that this Court will have to direct the Commissioner of Commercial Taxes, Chennai to issue appropriate directives in this regard. I find force in the said request. This Court therefore suo motu impleads the Commissioner of Commercial Taxes, Chennai as the fifth respondent in this writ petition and directs Shri.Aayiram K.Selvakumar, the learned Additional Government Pleader to take notice for him also.
11. The Commissioner of Commercial Taxes, Chennai is directed to issue a circular to all the inspecting squad officers in Tamil Nadu not to detain goods or vehicles where there is a bonafide dispute as regards the exigibility of tax or rate of tax.
The circular shall embody the essence of the decision reported in 2018 (11) TMI 1503 (N.V.K. Mohammed Sulthan Rawther and Sons and Willson Vs. Union of India). Such a circular shall be issued within a period of eight weeks from the date of receipt of

= = = = = = = =

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

= = = = = = = =

M/s SKYLINE BUILDERS Versus STATE OF KERALA, REPRESENTED BY THE CHIEF SECRETARY, THIRUVANANTHAPUTAM, THE COMMISSIONER, STATE GOODS AND SERVICES TAX DEPARTMENT, THIRUVANANTHAPUTAM AND ASSISTANT COMMISSIONER (WORKS CONTRACT), KOCHI
GST
2019 (2) TMI 327 – KERALA HIGH COURT – TMI
KERALA HIGH COURT – HC
Dated:- 23-1-2019
WP(C). No. 589 of 2019
GST
MR DAMA SESHADRI NAIDU. J.
For The Petitioner : ADVS. SRI. A. KUMAR SRI. JOB ABRAHAM SMT. G. MINI(1748) SRI. AJAY V. ANAND SRI. P. J. ANILKUMAR AND SRI. P. S. SREEPRASAD
For The Respondent : GP DR. THUSHARA JAMES
JUDGMENT
The petitioner, a business concern, has sought the following reliefs:
“(i) Declare that clauses (a), (b), (c), (d) and (e) of Sub Section 2 of Section 174

= = = = = = = =

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

= = = = = = = =

rticle 246A of the Constitution of India and Section 19 of the Constitution (One Hundred and First Amendment) Act, 2016 and also beyond the scope and scheme of the Kerala State Goods and Services Act 2017 (Act 20 of 2017) and is therefore to be rendered void and unenforceable.
(iii) Declare that the authorities under the Taxes Department of the State of Kerala have no jurisdiction or powers to levy, assess and collect tax under the Kerala Value Added Tax Act, 2003 (Act 30 of 2004) enacted under Entry 54 of the State list of the 7th Schedule to the Constitution as it stood prior to substitution on 16.09.16 by the Constitution (One Hundred and First Amendment) Act, 2016 and/or also consequent to the introduction of the Kerala State Goods A

= = = = = = = =

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

= = = = = = = =

V. VIJIN Versus STATE TAX OFFICER, STATE GOODS AND SERVICE TAX DEPARTMENT, THIRUVANANTHAPURAM, THE COMMISSIONER, STATE GOODS AND SERVICE TAX DEPARTMENT, THIRUVANANTHAPURAM, THE SECRETARY, TAXES DEPARTMENT, GOVERNMENT OF KERALA, THIRUVANANTHAPURAM AND CENTRAL BOARD OF EXCISE AND CUSTOMS, NEW DELHI
GST
2019 (2) TMI 328 – KERALA HIGH COURT – TMI
KERALA HIGH COURT – HC
Dated:- 23-1-2019
WP(C). No. 590 of 2019
GST
MR DAMA SESHADRI NAIDU, J.
For The Petitioner (s) : ADVS. SRI. P. S. SOMAN SMT. T. RADHAMONY SRI. K. SUNDAR SRI. V. SATHEESH
For the Respondent (s) SRI. SREELAL N. WARRIER, SC AND GP DR. THUSHARA JAMES
JUDGMENT
The petitioner, a business concern, has sought the following reliefs:
“(i) To call for the record

= = = = = = = =

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

= = = = = = = =

s of Constitution are inconsistent with the provisions of a statute the constitutional provisions only will prevail and hence Section 174 of the Kerala Goods and Service Tax Act 2017 to the extent to which they are in conflict with Constitution are bad in law;
(v) to declare that as Section 19 of the Constitution (One Hundred and First Amendment) Act, 2016 is having supremacy over the rest of the Sections of the Constitution (One Hundred and First Amendment) Act, 2016, the provisions passed under Section 174 invoking Article 246A of the Constitution of India is subservient to Section 19 of Constitution (One Hundred and First Amendment) Act, 2016 and so any provision in Section 174 of the Kerala Goods and Service Tax Act 2017 which are co

= = = = = = = =

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

= = = = = = = =

M/s. Sindia Steels Ltd. Versus CCGST, Nashik
Central Excise
2019 (2) TMI 380 – CESTAT MUMBAI – TMI
CESTAT MUMBAI – AT
Dated:- 23-1-2019
Appeal No. E/86271/18 – A/85176/2019
Central Excise
Dr. Suvendu Kumar Pati, Member (Judicial)
Shri S.M. Vaidya, Consultant for the appellant
Shri M.R. Melvin, Supdt. (AR) for the respondent
ORDER
Availment of cenvat credit on Education Cess & Secondary and Higher Secondary Education Cess against purchase of inputs for manufacture from 100% EOU for manufacturing was held inadmissible by the Commissioner (Appeals) that resulted in confirmation of duty demand along with interest and equivalent penalty against the appellant which is being assailed in this appeal.
2. The brief facts of the case is that appellant manufactures bright bar of stainless steel, and mild steel and mild steel wire. It has registered under the Central Excise Act. It availed cenvat credit on inputs for such manufacturing. During investigation made in Janu

= = = = = = = =

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

= = = = = = = =

dicating authority that was dismissed in respect of appellant company but allowed in respect of the Director absolving the penalty imposed on him. The present appeal is preferred by the appellant challenging part rejection of its appeal in respect of duty demand interest and penalty on the appellant company
3. In his memo of appeal and during course of hearing of the appeal, learned counsel for the appellant submitted that appellant had been availing credit as audit conducted twice found no irregularity in such availment but it had accepted its mistake in availing cenvat credit on Education Cess & Secondary and Higher Secondary Education Cess during the period between February 2011 and March 2011 and reversed the same immediately after it was brought to its knowledge by the excise official and such credit was only taken in its account but never utilised. In citing Larger Bench decision of this Tribunal in the case of JK Tyres & Inds. reported in 2016 (340) ELT 193 (Tri-LB) he also poi

= = = = = = = =

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

= = = = = = = =

the Commissioner (Appeals) who referred to the decision of the Hon'ble Supreme Court held in Ind-Swift Lab reported in 2011 (265) ELT 3 (SC). In citing decision of this Tribunal reported in 2018-TIOL-1034-CESTAT-MUM in the case of JSW Jaigarh Port, learned AR also submitted that after analysing the judgment in Ind-Swift Lab and Bilforge cited supra though penalty was waived off, interest liability was upheld. Referring to the factual aspect of the case that such wrong availment of cenvat credit was noticed after gathering intelligence information, Learned AR submitted that had the same not been noticed, on the strength of intelligence report appellant would have continued to avail the inadmissibility credit for which interference in the order of the Commissioner (Appeals) is uncalled for.
5. Heard from both sides at length, perused the case records, relied upon decisions, relevant provision of law and also written submissions of the appellant. Going by the show- cause notice and the

= = = = = = = =

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

= = = = = = = =

use (vii) it is very much clear that all those duties of excise specified under clause 1, 2,3,4,5, 6 and 6A, against which availment of cenvat credit is permissible, are equally applicable to additional duty leviable under section 3 of Customs Tariff Act. So there is no doubt that Education Cess & Secondary and Higher Secondary Education Cess paid against additional duty leviable under section 3 of Customs Tariff Act are covered under cenvat credit permitted to be taken under Rule 3(1) of Cenvat Credit Rules 2004. Further, in respect of additional duty leviable under sub-section (5) of Section 3 of the Customs Tariff Act, nothing has been mentioned in Rule 3(1) of Cenvat Credit Rules 2004 that Education Cess & Secondary and Higher Secondary Education Cess paid on those duty is also included for availment of credits by the manufacturer.
6. Going by Section 126 and 129 of the Finance Act it is very much clear that Secondary and Higher Secondary Education Cess levied under section 126 is

= = = = = = = =

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

= = = = = = = =

of Section 3 of the Customs Tariff Act.
7. In respect of taking of cenvat credit and its utilisation the learned counsel for the appellant had submitted relied upon the larger bench decision of J.K. Tyre, cited supra in which mear taking of credit is differentiated from its utilisation. Therefore, mere taking of cenvat credit in the book of account would not entail interest and penalty unless the same is drawn from the account of the government by way of refund or utilisation against duty dues. Moreover having regard to the fact that even the intelligence wing officials of the Excise department, who conducted investigation are unaware that higher education cess is not to be attached to sub-rule (5) of Rule 3 of Customs Tariff Rules, and issued show-cause to the appellant, the same itself is sufficient indication that even experts in the field of taxation also misinterpreted the provisions due to inadequate understanding. So the case of the appellant can be considered as a bonafide di

= = = = = = = =

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

= = = = = = = =