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2018 (10) TMI 941 – CALCUTTA HIGH COURT – [2018] 59 G S.T.R. 35 (Cal), 2018 (19) G. S. T. L. 29 (Cal.) – Constitutional validity of levy of GST on Lottery – petitioners have sought a declaration that, lotteries are exempt from tax under Sl. No. 6 of Schedule III read with Section 72 of the Central Goods and Service Tax Act, 2017 and Sl. No. 6 of Schedule III read with Section 72 of the State Goods and Service Tax Act, 2017 – scope of the word 'goods' – petitioner has submitted that, when CGST, 2017 and IGST, 2017 propose to tax a lottery, it goes beyond the constitutional definition of ‘goods’ – actionable claim – Transfer of Property Act, 1882.
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Is lottery a ‘goods’ or an ‘actionable claim’? – Held that:- In the case of Sunrise Associates [2006 (4) TMI 118 – SUPREME COURT OF INDIA], it is held that a lottery is in essential a chance for a prize, the sale of a lottery ticket can only be a sale of that chance. It has held that, there was no distinction between the two rights. The

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urchaser would have a claim to a conditional interest in the prize money which is not in the purchaser’s possession. The right would fall squarely within the definition of ‘actionable claim’ and, would therefore be excluded from the definition of goods under the Sale of Goods Act and the sales tax statute. It has held that, lotteries being actionable claims are generally speaking “goods” or moveable property – the first issue has to be answered by holding that, a lottery is an ‘actionable claim’ and goods or moveable property.
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Can lottery be taxed under Central Goods and Services Tax Act, 2017 and West Bengal Goods and Services Tax Act, 2017? – Held that:- In the facts of the present case, it has not been substantiated that, the State Legislature promulgating the West Bengal Goods and Services Tax Act, 2017 did not have the competence to pass the law or that it violates any fundamental rights of the petitioner or any other right of the petitioner or any provision of the Constitut

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the scope of such Act. Consequently, since lotteries are generally speaking ‘goods’ and come within the definition of ‘actionable claims’, and since, lotteries are kept out of the purview of ‘actionable claims’ which do not attract the CGST Act, 2017, lottery can therefore be charged to tax under the CGST Act, 2017 – The second issue is answered by holding that, lottery can be taxed under the Central Goods and Services Tax Act as well as the West Bengal Goods and Services Tax Act, 2017.
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If so, is differential levy of tax permissible? – Held that:- The Goods and Services Tax Council established under Article 279A of the Constitution of India at its 17th meeting deliberated extensively with regard to the rate of tax to be imposed on lotteries. Differential rate of tax was introduced in the 17th Goods and Services Tax Council Meeting held on June 18, 2017. The States before the Court were present in such meeting. It was after extensive deliberations that, the GST Council had approv

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it Bhowmick, Advocate Mr. Angan Baruah, Advocate For the Respondent No. 6: Mr. Ayanabha Raha, Advocate The petitioners have sought a declaration that, lotteries are exempt from tax under Sl. No. 6 of Schedule III read with Section 72 of the Central Goods and Service Tax Act, 2017 and Sl. No. 6 of Schedule III read with Section 72 of the State Goods and Service Tax Act, 2017. Learned Senior Advocate appearing for the petitioner has submitted that, a lottery cannot come within the definition of goods . Referring to 1986 Volume 1 Supreme Court 63 (H. Anraj v. Government of Tamil Nadu) he has submitted that, the initial view of the Supreme Court was that, lottery tickets to the extent they comprise the entitlement to participate in the draw, are goods. Such view was reversed in 2005 Volume 5 Supreme Court Cases page 603 (Sunrise Associates v. Government of NCT of Delhi). Both, the Central Goods and Services Tax Act, 2017 (CGST) and the State Goods and Services Tax Act, 2017 (SGST) define g

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neficial interest therein. Referring to Lotteries (Regulation) Act, 1998, he has submitted that, lottery has been defined to mean a scheme, in whatever form and by whatever name called for distribution of prizes by lot or chance to those persons participating in the chances of a prize, by purchasing tickets. According to him, ticket holder has a right to participate in the chance of getting a prize. The ticket holder, has a contingent interest in the prize money, which he may or may not get in the future, but does not get to possess any benefit for such payment in return. The sale of lottery ticket is, therefore, a sale of chance. Consideration is paid for the chance to win. The sale of lottery ticket therefore does not entail transfer of any goods or even beneficial interest in a movable property. Therefore, the person who sells the lottery ticket is not selling any goods nor is the purchaser buying any goods . Viewed from such perspective, lottery cannot come within the definition of

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er of taxation controlled by Article 265 of the Constitution forbids levy or recovery or any tax except by authority of law. Since lottery is not goods within the meaning of the Constitution, neither Central nor the State Governments can enact any law for the purpose of levying sales tax on the lottery. A lottery is not a commodity in the market which can be bought against consideration, and on payment of the consideration, the property passes to the purchaser. Referring to the provisions of the Act of 1998, he has submitted that, such Act came into being in exercise of powers under List I Entry 40 of the Seventh Schedule of the Constitution. According to him, treating lottery to be a goods would do violence to the provisions of the Act of 1998. The State and the Central legislature therefore have exceeded the Constitutional mandate in bringing lottery within the scope and ambit of the SGST, CGST and IGST. Without prejudice to such contentions, learned Senior Advocate appearing for the

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inless Ltd. (supra) in support of such contentions. Learned Additional Advocate General appearing for the State of West Bengal, the Respondent No. 3 herein, has submitted that, Goods and Service Tax Act, 2017 was enacted in order to simplify the regime of indirect taxation by bringing it under one umbrella. It has come into being by virtue of Constitutional Amendments, Central and State Legislations. He has drawn the attention of the Court to Articles 269A, 279A and 286 of the Constitution of India. He has also draws the attention of the Court to the deletion of entries in the Union and the State list and the incorporation of entries in the Union and the State list. He has submitted that, the Central Goods and Services Tax Act, 2017 came into effect on July 1, 2017. Section 2(52) of the CGST defines goods . Section 2(1) of the CGST defines actionable claim . He has referred to Section 3 of the Transfer of Property Act, 1882 which defines actionable claim . He has also referred to Artic

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t be subjected to Sales Tax. According to him, Sunrise Associates (supra) should be construed to mean that, lotteries are actionable claim and are included in the definition of goods . However, since the Sales Tax laws excluded actionable claim from its purview, lotteries were also held to be excluded. According to him, CGST and SGST, have included actionable claims within the definition of goods , having regard to the ratio laid down in Sunrise Associates (supra). The inclusion of actionable claim in the definition of goods is legislative recognition of judicial pronouncement. Therefore, it cannot be argued that, the Union Parliament or the State Legislature did not have competence to include actionable claim in the definition of goods . Learned Additional Advocate General appearing for the State of West Bengal has submitted that, the Union Parliament and the State Legislature have the competence to levy tax on any item including lottery. The State is not required to tax everything in

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al rights stipulated in Part III of the Constitution of India or any other right or provision of the Constitution of India. A statute cannot be declared unconstitutional solely on the ground that, it is unreasonable or arbitrary. He has pointed out that, the legislative competence to enact CGST Act and SGST Act and subjecting lottery to CGST and SGST have not been questioned. Learned Additional Advocate General appearing for the State of West Bengal has submitted that, the business of lottery partakes the character of betting and gambling. There exists no constitutional right to carry on the business of lottery. Therefore, there is no question of violation of fundamental rights. Since the business of lottery is not constitutionally protected activity, the reasonableness of physical restrictions cannot be subject matter of judicial review under Article 226 of the Constitution of India. Consequences and effects of legislations are not the same under legislative subject matter. Learned Ad

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he price of the ticket. The end customer which purchased the ticket is not saddled with any additional tax burden. Learned Additional Advocate General appearing for the State of West Bengal has submitted that, the State of Sikkim, Mizoram, Nagaland and Arunachal Pradesh, cannot be allowed to take a stand that, the rates introduced are discriminatory. He has relied upon AIR 1962 Calcutta 338 (The State v. Keshab Chandra) in support of his contentions. Learned Additional Solicitor General appearing for the Union of India has submitted that, the 101st Amendment to the Constitution introduced Article 279A to the Constitution. It deals with Goods and Services Tax Council. He has referred to Article 279A (4) of the Constitution. He has submitted that imposition of GST on lottery was discussed at length during the 17th GST Council meeting held on June 18, 2017. The States who are parties to the present writ petition were present in such Council meeting. The GST Council approved and resolved t

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value of ticket or of the price as notified in the Official Gazette by the organizing State, whichever is higher, for lottery run by State Governments and lottery authorised by State Governments respectively. According to him, the tax incidence is to be borne by recipient of goods and services. Tax of 12/28 per cent on a lottery ticket having a face value of ₹ 2 will translate into a tax component of 21 paisa/44 paisa which a consumer would pay for a chance to win at the bumper prize. According to him, this is a miniscule impact on the price of ticket. Learned Additional Solicitor General, has relied upon All India Reporter 1964 Supreme Court page 925 (Khyerbari Tea Co. Ltd. and Anr. v. State of Assam and Ors.) and submitted that, in tax matters, the State is allowed to pick and choose districts, objects, persons, methods and even rates for taxation, if it does so reasonably. He has submitted that, the categorization of sale of lotteries as lotteries organized by States and the l

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iews expressed by the north-east States and the other States in the 17th meeting, the formula of 12%/28% was promulgated. According to him, lottery is an actionable claim as held in Sunrise Associates (supra). Actionable claims are included in the definition of goods as defined in Section 2(52) of the CGST Act, 2017. Therefore, lottery is leviable to GST. He has submitted that, the respondent no. 1 adopts the contentions of the State of West Bengal with regard to the contentions relating to Articles 301 to 304 of the Constitution of India. Learned Senior Advocate appearing for the respondent no. 5, the State of Nagaland, has submitted that, the State of Nagaland in the 17th GST meeting held on June 18, 2017 objected against imposition of high rates of GST on lottery. Nagaland has very limited sources of revenue. It does not have a lottery market of its own. It is largely dependent on bigger markets in other States of West Bengal, Maharashtra, Punjab and others. The proposal of Governme

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cate appearing for the State of Nagaland has submitted that, Article 279A (6) mandates a uniform/harmonious tax structure. Lottery is defined in Section 2(b) of the Lotteries (Regulation) Act, 1998. The same does not permit any classification as sought to be made by the GST Council. H. Anraj (supra) has held that a discriminatory tax on lottery would be violative of Articles 301 and 304. To some extent, H. Anraj (supra) holds the field. He has pointed out that, out of 29 States and 7 Union Territories in India, only 10 States organize lotteries. Out of the States organizing lotteries, only Hill States of North-East are affected. Therefore, the Hill States were outnumbered and outvoted in the GST Council. The Hill States were therefore obliged to apply the rates as decided by the GST Council. Learned Advocate General of the State of Mizoram appearing for the respondent no. 2, has submitted that, the classification of 12/28 percent of tax for lotteries has no functional basis. He has ref

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o the purchaser. Referring to Suman Enterprises (supra) learned Advocate for the petitioner has contended that, although it has held that, there was no fundamental right to carry on trade of lottery tickets, it has also noticed the ingredients in the sale of lottery tickets. According to him, the activity of holding lottery by a State under the Lottery (Regulation) Act, 1998 would come under Article 298 of the Constitution. If a State exercises powers under Section 5 of the Act of 1998 then, such State must also stop its own business of lottery in order to stop other States from selling lotteries within its territorial jurisdiction. According to him, lottery cannot be goods but is to be treated as business of contract. He has contended that, even if it is assumed that, sale of lottery ticket does not come within the meaning of Article 301 to 304, the same makes no difference as it is an activity covered under Article 298 of the Constitution, and is uniformly applicable to all States. T

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n the seventh schedule, when the legislature has fixed the type of lottery to be one. Discrimination in the rates of levy between State organized lotteries merely because they are crossing the borders has no rational nexus and is highly discriminatory and violative of Article 14 of the Constitution of India as also Articles 301 to 304 of the Constitution. Consequently, he submits that, the reliefs as prayed for in the writ petition should be granted. The following issues have arisen for consideration:- i) Is lottery a goods or an actionable claim ? ii) Can lottery be taxed under Central Goods and Services Tax Act, 2017 and West Bengal Goods and Services Tax Act, 2017? iii) If so, is differential levy of tax permissible? iv) To what reliefs, if any, are the parties entitled to? The petitioners claim that, they sell paper lotteries of the respondent no. 2 and respondent no. 4 to 6 within the State of West Bengal. Apart from the respondent no. 2 and 4 to 6, there are other States which or

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ledge of movable property, or to any beneficial interest in movable property not in the possession, either actual or constructive, of the claimant, which the Civil Courts recognised as affording grounds for relief, whether such debt or beneficial interest be existent, accruing, conditional or contingent. The definition of goods in the Constitution is an inclusive definition. It has a very wide sweep. All materials, commodities and articles are included in the definition. The definition, to my reading, is not limited to tangible materials, commodities and articles. An intangible product such as a software would come within the definition of goods appearing in Article 366(12) of the Constitution of India. Whether lottery tickets can be goods was considered in H. Anraj (supra). Such issue was considered in the backdrop of the larger issue as to whether, Sales Tax can be levied by a State Legislature on the sale of lottery tickets in the concerned State. H. Anraj (supra) was rendered on Oc

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g a price therefor ( the face value of the ticket ) and such purchase entitles him not merely to receive or claim a prize in the draw, if successful but before that also to participate in such draw. In other words, a sale of a lottery ticket confers on the purchaser thereof two rights (a) a right to participate in the draw and (b) a right to claim a prize contingent upon his being successful in the draw. Both would be beneficial interests in movable property, the former in praesenti , the latter in futuro depending on a contingency. Lottery tickets, not as physical articles, but as slips of paper or memoranda evidence not one but both these beneficial interests in movable property which are obviously capable of being transferred, assigned or sold and on their transfer, assignment or sale both these beneficial interests are made over to the purchaser for a price. Counsel for the dealers sought to contend that the concept of a lottery cannot be sub-divided in two parts, namely, a right t

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v. Connare on which counsel for the dealers relied. It is thus clear that a transfer of the right to participate in the draw which takes place on the sale of a lottery ticket would be a transfer of beneficial interest in movable property to the purchaser and therefore, amounts to transfer of goods and to that extent it is no transfer of an actionable claim; to the extent that it involves a transfer of the right to claim a prize depending on a chance it will be an assignment of an actionable claim. H. Anraj (supra) has held that, lottery tickets are goods for the purpose of Article 366(29-A)(a) of the Constitution of India and the Tamilnadu General Sales Tax Act 1959 and Bengal Finance (Sales Tax) Act, 1941. It has held that, only the transfer of right to participate in the lottery draw, which took place on the sale of a lottery ticket amounted to a transfer of goods to the extent that the sale involved the transfer of the right to claim the prize, depending on chance, it was an assignm

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ght to transfer. A contract is not a property but only a promise supported by consideration, upon breach of which either a claim for specific performance or damages would lie. Like railway tickets, a ticket to see a cinema or a pawnbroker s ticket are memoranda or contracts between the vendors of the ticket and the purchasers. Tickets are themselves normally evidence of and in some cases the contract between the buyer of the ticket and its seller. Therefore, a lottery ticket can be held to be goods if at all only because it evidences the transfer of a right. It has examined the question as to what right a lottery ticket represents. It has held that, on purchasing a lottery ticket, the purchaser would have a claim to a conditional interest in the prize money which is not in the purchaser s possession. The right would fall squarely within the definition of actionable claim and, would therefore be excluded from the definition of goods under the Sale of Goods Act and the sales tax statute.

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rated, Central Goods and Services Tax Act, 2017, Integrated Goods and Services Tax Act, 2017 and the respective State Goods and Services Tax Act, 2017 were enacted. Article 246A of the Constitution of India makes special provision with respect to Goods and Services Tax. It empowers the Parliament and the Legislature of every State subject to Article 246A(2) and notwithstanding anything contained in Articles 246 and 254, to make laws with respect to Goods and Services Tax imposed by the Union or the State. Article 246A(2) recognises the exclusive power of the Parliament to make laws with respect to Goods and Services Tax where the supply of goods, or of services, or both takes place in course of inter-state trade or commerce. Article 269A deals with levy and collection of Goods and Services Tax in course of inter-state trade or commerce. Essentially, Article 269A recognises the Government of India to collect Goods and Services Tax on supplies in the course of inter-state trade or commer

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, Commerce or Intercourse between States or within any part of the territory of India as may be required in public interest. Article 304 empowers the State Legislature to impose restrictions on Trade, Commerce and Intercourse among States on the parameters enumerated therein and subject to Article 303. Article 303 imposes restrictions on the Legislative power of the Union and the States with regard to Trade and Commerce. Therefore, Trade, Commerce and Intercourse throughout the territory of India are not absolutely free. They are subject to reasonable restrictions as may be imposed by a State Legislature or by the Parliament in public interest. Article 303(2) allows the Parliament to make non-discriminatory laws if it is necessary to deal with scarcity of goods in any part of India. Relevant provisions of the Central Goods and Services Tax Act, 2017 are as follows:- 2. Definitions In this Act, unless the context otherwise requires,- (1) actionable claim shall have the same meaning as a

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for a consideration whether or not in the course or furtherance of business; (c) the activities specified in Schedule I, made or agreed to be made without a consideration; and (d) the activities to be treated as supply of goods or supply of services as referred to in Schedule II. (2) Notwithstanding anything contained in sub-section (1),- (a) activities or transactions specified in Schedule III; or (b) such activities or transactions undertaken by the Central Government, a State Government or any local authority in which they are engaged as public authorities, as may be notified by the Government on the recommendations of the Council, shall be treated neither as a supply of goods nor a supply of services. (3) Subject to the provisions of sub-sections (1) and (2), the Government may, on the recommendations of the Council, specify, by notification, the transactions that are to be treated as- (a) a supply of goods and not as a supply of services; or (b) a supply of services and not as a

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asis by the recipient of such goods or services or both and all the provisions of this Act shall apply to such recipient as if he is the person liable for paying the tax in relation to the supply of such goods or services or both. (4) The central tax in respect of the supply of taxable goods or services or both by a supplier, who is not registered, to a registered person shall be paid by such person on reverse charge basis as the recipient and all the provisions of this Act shall apply to such recipient as if he is the person liable for paying the tax in relation to the supply of such goods or services or both. (5) The Government may, on the recommendations of the Council, by notification, specify categories of services the tax on intra-State supplies of which shall be paid by the electronic commerce operator if such services are supplied through it, and all the provisions of this Act shall apply to such electronic commerce operator as if he is the supplier liable for paying the tax in

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le Processor (supra). The State is allowed to pick and choose districts, objects, persons, methods and even rates for taxation if it is done reasonably is the view expressed in The Twyford Tea Company (supra). It has not been substantiated that, either the Central or the State Legislatures have exceeded their jurisdiction in promulgating any of the Acts governing goods and services. Binoy Viswam (supra) has held that, a legislation or a provision contained in a statute can be invalidated on two grounds, namely, it is not within the competence of the legislature which passed the law and/or it is in contravention of any of the fundamental rights stipulated in Part III of the Constitution or any other right/provision of the Constitution of India. It goes on to say that, a statute cannot be declared unconstitutional on the ground that, it is arbitrary or unreasonable. In the facts of the present case, it has not been substantiated that, the State Legislature promulgating the West Bengal Go

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ch shall be treated neither as a supply of goods nor as a supply of services. Entry 6 of Schedule III of CGST Act, 2017 takes out actionable claims other than lottery, betting and gambling from the scope of such Act. Consequently, since lotteries are generally speaking goods and come within the definition of actionable claims , and since, lotteries are kept out of the purview of actionable claims which do not attract the CGST Act, 2017, lottery can therefore be charged to tax under the CGST Act, 2017. On the parity of the same reasoning, lottery is chargeable to tax under WB GST Act, 2017 also. Jindal Stainless Ltd. (supra) has held that, the power of taxation is controlled under Article 265 of the Constitution and that, no tax can be levied, except by authority of law. CGST Act, 2017 and WB GST Act, 2017 cannot be held to be unconstitutional. Lotteries come within the scope and ambit of CGST Act, 2017 and WB GST Act, 2017. Therefore, lottery can be taxed under the CGST Act, 2017 and W

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ed by requisite majority. Article 279A contemplates establishment of a mechanism to adjudicate any dispute between one or more States or between the Government of India and any State or States on one side and one or more States on the other side or between two or more States. However it should not be construed that, the decisions or the resolutions of the Goods and Services Tax Council is immune from judicial review or that they are not justiciable. In a given case, where, a resolution adopted in the Goods and Services Tax Council Meeting is substantiated to be breaching any fundamental right or any provision of the Constitution of India, the same can be adjudicated upon by a Writ Court. The Goods and Services Tax Council established under Article 279A of the Constitution of India at its 17th meeting deliberated extensively with regard to the rate of tax to be imposed on lotteries. Differential rate of tax was introduced in the 17th Goods and Services Tax Council Meeting held on June 1

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2018 (10) TMI 942 – KERLA HIGH COURT – TMI – Central excise credit – Migration to GST Regime – petitioner claimed the credit transfer through Trans- III – case of respondent is that petitioner submitted a wrong form; that is Trans-III, instead of Trans- I – Held that:- Because of the uncertainty in the new tax regime, the petitioner was given to believe that it was Trans-III. He has also maintained that the then the draft rules also indicates the same effect. In the end he has submitted that the 4th respondent may consider the Ext.P7 and take an appropriate decision – petition disposed off holding that the 4th respondent will consider the Ext.P7 and pass appropriate orders, at the earliest. – WP(C).No. 28824 of 2018 Dated:- 10-10-2018 – M

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ad of Trans- I. Therefore, it cannot blame the respondents for its not getting the central excise credit. 3. At any rate, the petitioner's counsel in reply submits that because of the uncertainty in the new tax regime, the petitioner was given to believe that it was Trans-III. He has also maintained that the then the draft rules also indicates the same effect. In the end he has submitted that the 4th respondent may consider the Ext.P7 and take an appropriate decision. 4. I, therefore, without adverting to the merits of the matter, dispose of the writ petition, holding that the 4th respondent will consider the Ext.P7 and pass appropriate orders, at the earliest. – Case laws – Decisions – Judgements – Orders – Tax Management India – tax

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GST – States – 32683–FIN- CT1-TAX- 0034/2017/FIN-S.R.O. No.417/2018 – Dated:- 10-10-2018 – FINANCE DEPARTMENT NOTIFICATION The 10th October, 2018 S.R.O. No.417/2018 – In exercise of the powers conferred by Section 164 of the Odisha Goods and Services Tax Act, 2017 (Odisha Act 7 of 2017), the State Government, on the recommendations of the Goods and Services Tax Council, do hereby make the following rules further to amend the Odisha Goods and Services Tax Rules, 2017, namely:- 1. (1) These rules may be called the Odisha Goods and Services Tax (Twelfth Amendment) Rules, 2018. (2) They shall come into force on the date of their publication in the Odisha Gazette. 2. In the Odisha Goods and Services Tax Rules, 2017 (hereinafter referred to as t

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321(E), dated the 23rd October, 2017; or (b) availed the benefit of notification No. 78/2017-Customs, dated the 13th October, 2017, published in the Gazette of India, Extraordinary, Part II, Section 3, sub-section (i), vide number G.S.R 1272(E), dated the 13th October, 2017 or notification No. 79/2017-Customs, dated the 13th October, 2017, published in the Gazette of India, Extraordinary, Part II, Section 3, sub-section (i), vide number G.S.R 1299(E), dated the 13th October, 2017, the refund of input tax credit, availed in respect of inputs received under the said notifications for export of goods and the input tax credit availed in respect of other inputs or input services to the extent used in making such export of goods, shall be granted

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e Extraordinary issue No. 1705 of the Odisha Gazette, dated the 23rd October, 2017 bearing S.R.O. No. 510/2017 or notification No. 41/2017-Integrated Tax (Rate), dated the 23rd October, 2017, published in the Gazette of India, Extraordinary, Part II, Section 3, sub-section (i), vide number G.S.R 1321 (E), dated the 23rd October, 2017 has been availed; or (b) availed the benefit under notification No. 78/2017-Customs, dated the 13th October, 2017, published in the Gazette of India, Extraordinary, Part II, Section 3, sub-section (i), vide number G.S.R 1272(E), dated the 13th October, 2017 or notification No. 79/2017-Customs, dated the 13th October, 2017, published in the Gazette of India, Extraordinary, Part II, Section 3, sub-section (i),vid

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GST – States – 32679–FIN- CT1-TAX- 0034/2017/FIN. – S.R.O. No.416/2018 – Dated:- 10-10-2018 – FINANCE DEPARTMENT NOTIFICATION The 10th October, 2018 S.R.O. No.416/2018 – In exercise of the powers conferred by Section 164 of the Odisha Goods and Services Tax Act, 2017 (Odisha Act 7 of 2017), the State Government, on the recommendations of the Goods and Services Tax Council, do hereby make the following rules further to amend the Odisha Goods and Services Tax Rules, 2017, namely:- 1. (1) These rules may be called the Odisha Goods and Services Tax (Eleventh Amendment) Rules, 2018. (2) They shall be deemed to have come into force with effect from the 23rd October, 2017. 2. In the Odisha Goods and Services Tax Rules, 2017, in rule 96, for sub-r

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2018 (11) TMI 449 – AUTHORITY FOR ADVANCE RULING, ANDHRA PRADESH – 2018 (19) G. S. T. L. 327 (A. A. R. – GST) – Rate of GST – the applicant purchases the dried leaves on auction platform, and trading. Getting the jobwork done for threshing and trading – Held that:- As per the Circular of Tax Research Unit, vide F. No. 332/2/2017, Government of India Ministry of Finance Department of Revenue Tax Research Unit, Dec 2017, question no. 42 “Tobacco leaves falling under heading 2401 attracts 5% GST on reverse charge basis in respect of supply by an agriculturist – the transactions of tobacco from auction platform to the supply made to the exporter are to be interpreted in the light of the relevant notifications and to decide the rate of tax accordingly.
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As seen from the different stages of commodity i.e., from the leaves stage to the final product (manufactured tobacco), the green leaf plucked from the plant undergoes different types of curing to reduce the level of moisture to the ma

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anufactured tobacco’.
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The process of tobacco, from the field to final product, the green leaves undergo curing process, and become eligible commercial commodity, for which the first transaction takes place in between the farmer and the trader on the auction platform. Further, as per the clarification issued by TRU tobacco leaves means leaves of tobacco as such or broken tobacco leaves or tobacco leaves stems” also clearly express that the leaves as long as they do not loose their basic character as ‘leaves’ shall be considered as tobacco leaves only.
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Ruling:- Rate of GST if tobacco leaves procured at tobacco auction platforms or directly from farmers, which are cured and dried by farmers themselves – Held that:- The GST Rate of tax for the tobacco leaves procured at tobacco auction platforms or directly from farmers, which are cured and dried by farmers themselves is 5% – HSN Code: 2401.
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Rate of GST if the applicant purchases tobacco leaves from other dealers who have

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. No 109 of Schedule I Notification No. 1/2017 (CGST)Central tax) Rate. Dt 28.6.2017 – HSN Code: 2401.
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Rate of GST if the applicant gets the tobacco threshed and re-dried on job work basis at GLT plants and then sells such threshed and re dried tobacco leaves – Held that:- Rate of GST will be 28% (14 % SGST + 14 % CGST) as per Sl. No 13 of Schedule IV Notification No. 1/2017 (CGST)Central tax) Rate. Dt 28.6.2017 – HSN code: 2401. – AAR/AP/17(GST)/2018 in Application No. AAR/28/(GST)/2018 Dated:- 10-10-2018 – SRI. J.V.M SARMA AND SRI. AMARESH KUMAR, MEMBER Present for the Applicant: Sri. A. Siva Prasad (Authorized Representative) Present for the Jurisdictional Officer: Remarks Received Note: Under Section 100 of the APGST Act 2017, an appeal against this ruling lies before the appellate authority for advance ruling constituted under section 99 of APGST Act 2017, within a period of 30 days from the date of service of this order. M/s. PRAGATHI ENTERPRISES, Jammulapalem Village, Tan

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tobacco leaves re dried without getting them threshed what is the applicable rate or tax? If the applicant gets the tobacco threshed and re-dried on job work basis at GLT plants and then sells such threshed and re dried tobacco leaves what is the applicable rate of tax? 1. The applicant is a trader in tobacco in all varieties and form of tobacco available. Guntur and Prakasam Districts are famous for tobacco leaf and various verities of Tobacco, mainly FCV as well as Natu tobacco (Non-FCV) are widely available in these regions. 2. The applicant is registered with The Tobacco Board as Dealer in Tobacco vide Regn No: TB/DEALER/2018/4753, but not registered under GST as his turnover is below the threshold limit. However he would like to register with GST authorities in anticipation of his growing business requirement as and when the turnover crosses the threshold limit. 3. It is submitted that, a. Until the enactment of GST Act, the products of Tobacco leaves / Unmanufactured Tobacco wer

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ed/ stripped 2401.30 – Tobacco refuse c. There is clarity as to the product description in the above two heading. However the words of Tobacco leaves and Unmanufactured Tobacco (other than tobacco leaves) are not defined in the tariff. d. FCV Tobacco Leaves, Flue Cured Virginia Tobacco is widely available in the region of Guntur and Prakasam and these leaves are cultivated by the farmers. FCV Tobacco is regulated and is permitted to be purchased or sold only at the Tobacco Auction Platforms conducted by the Tobacco Board. e. The tobacco leaves after cultivation will be plucked and separated from the plants. These leaves, as plucked from trees are green in color and are very tender, delicate and very high in moisture. In this stage they will get damaged and rotten within few days of time unless cured. The tobacco leaves are cured (technical name for drying) in various forms or styles viz., Sun curing, Air curing, Flue Curing etc. whereby the leaves are dried and the moisture levels are

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umstances the applicant may undertake the following minimal process on the tobacco before supplying as per the requirement of the dealer. (i) Grading: The applicant may get an order from the buyers to to grade the tobacco. In such a case, the applicant engages manual labour to segeragate or classify the tobacco leaves into various grades depending on their size (width), length, colouror shade and other physical parameters of the leaf. These activities will be performed manually by unskilled labour and who will open the bale and separate the tobacco leaves to physically grade the tobacco into different categories as stated above. The tobacco leaves so graded, will again be packed into bales and wrapped in Jute bags for onward supply to other tobacco dealers or manufacturers. (ii) Butting: The tobacco leaf when plucked from the plant will have a rough edge on the side it attaches to the plant. These rough edges may damage other leavesor make packing difficult. Therefore the edge of the t

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sical or chemical parameters of the leaf. Normally re-drying is order for, if it is not proposed to supply the tobacco for immediate threshing. These processes of grading, butting or redrying are undertaken at a specific requirement of the buyer and hardly 5% of the tobacco leaves is specified for these processes. d) The applicant will normally sell the tobacco leaves to tobacco exporters or manufacturers. The tobacco leaves will be subject to a process called Threshing and Redrying at GLT plants. Threshing is a process of separating the stem or the Mid-rib of the leaves and the leaves portion without stem is called Lamina . The threshing is undertaken on certain plant and machinery, normally referred to as Green Leaf Threshing Plants (GLTs). In GLTs, the lamina and stem are separated and the Lamina is redried to ensure uniform and homogenized moisture throughout the lot. e) The Tobacco after threshing and redrying is also referred in the trade parlance as tobacco leaf only. The essent

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y other agricultural commodity in the form of leaves will require. Hence they are necessarily be cured (technical name for drying) by the agriculturist/ farmers himself in various ways viz., Sun curing, Air curing, Flue Curing, Fire curing etc., whereby the leaves are dried and the moisture levels are reduced to make them fit for primary marketability by the farmer. It is pertinent to note here that the entire tobacco brought for the primary market is after curing by the farmers. It is needless to say that the green tender leaves as plucked from the plant will never be marketed anywhere in the world. b) A Detailed chart of tobacco from farm to final product is furnished. c) After procuring the tobacco leaves in the market, the leaves can either be traded as such or may be graded as per their colour, length and other parameters and then traded or used for further manufacturing of tobacco. Occasionally the tobacco may be butted and re-dried without threshing. d) The tobacco is then thres

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s cured. The tobacco leaves are cured (technical name for drying) in different forms or styles viz., Sun curing, Air curing, Flue Curing etc.(any one method) whereby the leaves are dried and the moisture levels are reduced Air curing will be adopted for lighter / thin type of leaves. Sun curing involves exposing the leaves under sun, in inverted positions. Sun cures enable more dryness than air curing Flue curing involves transmitting heat through ducts and this will result in more uniform and consistent curing of the tobacco leaves. All three of curing will be undertaken by farmers at the field level. Cured tobacco Leaf Bundled for Trading Optional Process (Grading) Optional Process (Butting) The cured tobacco leaves with Iow-moisture due to curing will be first tradable commodity (Primary marketable product) The cured tobacco leaves will be bundles into bales and brought to the auction platform in case of FCV (Flue Cured Virginia Tobacco) and to market in case of Non-FCV tobacco. Gra

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arious commodities. 80% of FCV tobacco is exported at Threshing stage and balance is sold to local manufactures of Cigarettes. Other kinds of tobacco may be sold for different purpose. Cut-Rag Cut rag (Chemically blended) Cigarette Pipe This is machine made cutting of strands of tobacco (unmanufactured) Chemically blended and flavoured tobacco. Fiited into a cigarette tube. Filled into a somke-Pipe, Fermented Leaf Cherrots Cigars Bidis Fermented dried tobacco leaves for the manufacture of cherrots or cigars. Rolled Fermented leaves into Cherrots. Rolled Fermented leaves into Cigars, (tapered on one side) Tobacco dust, wrapped along with other materials into Bidi Leaves Tobacco Chew: Guthka Khaini Snuff Chewing Tobacco. Chewing tobacco treated with lime and other chemicals Chewing tobacco treated with flavours and Masalas. Tobacco snuff made from dried tobacco leaves and dust for inhaling purpose. 6. Contentions of the applicant. a) All of the tobacco crop that is produced shall have to

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the term in common parlance or commercial parlance has to be adopted as held in the case of Oswal Agro Mills Ltd vs. CCE, [1993 (66) E.L.T. 37 (S.C.) = 1993 (4) TMI 73 – SUPREME COURT OF INDIA. e) In the case of IdupulapatiSesha Rao, Karedu Vs State of AP (13 APSTJ 44), the Honourable Sales Tax Appellate Tribunal of AP, Hyderabad held that in the classification of commodities, the meaning of the article should be understood according to the common commercial understanding and not in their scientific and technical sense. f) It is also a well settled law that and held in various celebrated cases like M/s. D.s. Bist & sons Nainital 1979 (004) SCC – 0741 = 1979 (9) TMI 168 – SUPREME COURT OF INDIA that It should be remembered that almost every kind of agricultural produce has to undergo some kind of processing or treatment by the agriculturist himself in his farm or elsewhere. In order to bring them to a condition of non-perishability and to make them transportable and marketable, som

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ricultural activity only as in the case of other commodities like cotton, chillies etc. The threshed and re-dried FCV tobacco has no use as such, hence it can be considered as primary agricultural produce only. h) It is a settled legal position that an entry in the tariff has to be read as it is following the principle of literal Rule of interpretation and the word , term or a phrase shall not be read by affixing or suffixing another word to it. In the above entry, the term Tobacco Leaves is mentioned without any qualifier attached to it viz., dried tobacco leaves , undried tobacco leaves , cured tobacco leaves etc., In such cases, it cannot be read that tobacco leaves means only those leaves cut from the plants and tobacco leaves on which certain operations are conducted will not be tobacco leaves . It is also clear that in the absence of the definition given to the term tobacco leaves , shall be under stood in its natural and commercial meaning. i) There are many other agricultural c

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I 2.5% 19. 0301 Live fish. 20. 0302 Fish, fresh or chilled, excluding fish fillets and other fish meat of heading 0304 21. 0304 Fish fillets and other fish meat (whether or not minced), fresh or chilled. Tea leaves Taxable Tea leaves 36. 0902 Tea, whether or not flavored [other than unprocessed green leaves of tea]-2.5% Sch.l Exempt tea leaves 61. 0902 Unprocessed green leaves of tea Nuts Taxable nuts: 28. 0802 Dried areca nuts, whether or not shelled or peeled 29. 0802 Dried chestnuts (singhada), whether or not shelled or peeledSche 12.5% 62. 1109 00 00 Wheat gluten, whether or not driedSch. I2.5% (gluten means proteins contained in wheat) Exempt Nuts 49. 0802 Other nuts, Other nuts, fresh such as Almonds, Hazelnuts or filberts (Coryius spp.), walnuts, Chestnuts (Castanea spp.) Pistachios, Macadamia nuts, Kola nuts (Cola spp.), Areca nuts, fresh, whether or not shelled or peeled Dates Taxable dates:- 16. 0804 Dates, figs, pineapples, avocados, guavas, mangoes and mangos teens, dried-S

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will be not be any product that can be taxed at 5%. It means that the provision of Schedule I Item no 103 will go redundant without application which is definitely not the intention of the legislature. k) The applicable rates of GST for goods were mentioned in Notification 1/2017 Central Rate. It is not mentioned as to who shall be supplier and who shall be recipient. While notification 4/2017 CGST (R) notifies the cases where the RCM (reverse charge Mechanism) shall be applied, it is silent as to the rate. Thus as long as the product remains the same, it does not matter whether the same is procured from an agriculturist or an unregistered dealer, or registered dealer. The application of RCM is only to prescribe as to who shall pay the tax and it had no bearing on the applicability of the rate of GST. 7. The applicant has sought for the following clarifications. i. What is the rate of GST applicable on tobacco leaves procured at tobacco auction platforms or directly from farmers, whic

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with stage wise physical specimens of tobacco. In support of his argument he has furnished the letter issued by the ICAR – Central tobacco Research Institute – Rajahmundry, Andhra Pradesh. The concerned jurisdictional authority Assistant Commissioner State Tax Ongole -2 have submitted that there are no proceedings passed or pending in this regard. . Legal Position 1. The rates of GST in relation to tobacco are covered under the heads as under, (Notification no; 1/2017, Central Tax (Rate), Schedule HSN Product Description Rate of GST Schedule -I : Sl No 109 2401 Tobacco Leaves CGST 2.5% i.,e total GST % = 5% Schedule – IV; Sl No; 13 2401 Unmanufactured Tobacco; tobacco refuse (other than tobacco leaves) CGST 14 % ie., total GST = 28% Schedule – IV; Sl. No; 14 2402 Cigars, cheroots, cigarillos and cigarettes, of tobacco or of tobacco substitutes CGST 14 % ie., total GST = 28% Schedule – IV; No; 15 2403 Other manufactured tobacco and manufactured tobacco substitutes; -homogenized or-reco

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Flue Cured Virgina Tobacco 2401 20 20 Sun cured Country (Natu) Tobacco 2401 20 30 Sun cured Virgina Tobacco 2401 20 40 Burley Tobacco 2401 20 50 Tobacco for manufactures of Bidis, not stemmed 2401 20 60 Tobacco for manufactures of Chewing tobacco 2401 20 70 Tobacco for manufactures of cigar and cherrot 2401 20 80 Tobacco for manufactures of Hokkah tobacco 2401 20 90 Other 2402 Cigars, Cheroots, Cigarillos And Cigarettes, Of Tobacco Or Of Tobacco Substitutes 2403 Other manufactured tobacco and manufactured tobacco substitutes; homogenized or reconstituted tobacco; tobacco extracts and essences [including biris] 4. As per the Circular of Tax Research Unit, vide F. No. 332/2/2017, Government of India Ministry of Finance Department of Revenue Tax Research Unit, Dec 2017, question no. 42 Tobacco leaves falling under heading 2401 attracts 5% GST on reverse charge basis in respect of supply by an agriculturist. What is the meaning of tobacco leaves? it has been answered that For GST rate of 5

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aves as such are not used for making tobacco products (both smoke and non smoke) as it contains huge moisture (75% – 80%). The process of curing is done by the solar energy (sun curing), or air /shade or thermal energy (flue curing) depending upon the type of tobacco to be cured. As the curing process is done by the farmer at farmer s place. it is construed as an integral part of tobacco leaf production process As seen from the different stages of commodity i.e., from the leaves stage to the final product (manufactured tobacco), the green leaf plucked from the plant undergoes different types of curing to reduce the level of moisture to the maximum extent for sustainability and to continue as leaf for further processes. The tobacco leaf will be entitled as a commercial commodity only after drying (curing) and normally put to trade in form of bundles. The same will be traded between the farmer and the trader, and trader to trader/manufacturer and so on. As envisaged from the entries unde

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em It is observed that the two entries Sl.No 109, of Schedule I tobacco leaves and entry no 13 of IV schedule Unmanufactured Tobacco; tobacco refuse (other than tobacco leaves) in the notification No 1/2017 (CGST Rate)Central Tax are only falling under the same HSN code 2401 .. On detailed examination of the description of the commodity under the head 2401, 2401.10 : represents the commodities of Tobacco not stemmed or stripped, and 2410.20 represents the commodity Tobacco partly or wholly stemmed or stripped . Further, the entries 2402, speaks about the finished product, and 2403 describes about the other products made out of tobacco. Hence the other two are not relevant for the present case. Therefore, a clear distinction shall be drawn between the tobacco leaves and the unmanufactured tobacco . As observed from the facts, i.e process of tobacco, from the field to final product, the green leaves undergo curing process, and become eligible commercial commodity, for which the first tra

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s who have purchased them farmers, for the purpose of trading what will be the applicable rate of tax? Ruling : 5% (2.5 % SGST + 2.5 % CGST) as per sr. No 109 of Schedule I Notification No. 1/2017 (CGST)Central tax) Rate. Dt 28.6.2017 iii. If the applicant segregates the tobacco into grades depending upon their size (width), colour/shade, length, texture of the leaf etc and sells such graded tobacco leaf what is the applicable rate of tax? Ruling : 5% (2.5 % SGST + 2.5 % CGST) as per Sl. No 109 of Schedule I Notification No. 1/2017 (CGST)Central tax) Rate. Dt 28.6.2017 iv. If the tobacco leaves are butted and sold to other dealers what will be the applicable rate of tax? Ruling : 5% (2.5 % SGST + 2.5 % CGST) as per Sl. No 109 of Schedule I Notification No. 1/2017 (CGST)Central tax) Rate. Dt 28.6.2017 v. If the applicant gets the tobacco leaves redried without getting them threshed what is the applicable rate of tax? Ruling : 5% (2.5 % SGST + 2.5 % CGST) as per Sl. No 109 of Schedule I

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GST – States – KA.NI.-2-1962/XI-9(42)/17 – Dated:- 10-10-2018 – Uttar Pradesh Shasan Sansthagat Vitta, Kar Evam Nibandhan Anubhag-2 NOTIFICATION NO. KA.NI.-2-1962/XI-9(42)/17-U.P.GST Rules-2017, Order-(147)-2018 Lucknow : Dated : October 10, 2018 In exercise of the powers conferred by Section 164 of the Uttar Pradesh Goods and Services Tax Act, 2017 (U.P. Act no. 1 of 2017), read with section 21 of the Uttar Pradesh General Clause Act, 1904 (U.P. Act no. 1 of 1904), the Governor is pleased to make the following rules with a view to amending the Uttar Pradesh Goods and Services Tax Rules, 2017, namely:- THE UTTAR PRADESH GOODS AND SERVICES TAX (Twentieth Amendment) RULES, 2018 Short title and commencement 1. (1) These rules may be called the Uttar Pradesh Goods and Services Tax (Twentieth Amendment) Rules, 2018. (2) They shall be deemed to have come into force with effect from the 4th day September, 2018 Amendment in rule 22. 2. In the Uttar Pradesh Goods and Services Tax Rules, 2017,

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egistered person. . Amendment in rule 55. 4. In the said rules, in rule 55, in sub-rule (5), after the words completely knocked down condition , the words or in batches or lots shall be inserted. Amendment in rule 89. 5. In the said rules, in rule 89, in sub-rule (4), for clause (E), the following clause shall be substituted, namely:- (E) Adjusted Total Turnover means the sum total of the value of- (a) the turnover in a State or a Union territory, as defined under clause (112) of Section 2, excluding the turnover of services; and (b) the turnover of zero-rated supply of services determined in terms of clause (D) above and non-zero-rated supply of services, excluding- (i) the value of exempt supplies other than zero-rated supplies; and (ii) the turnover of supplies in respect of which refund is claimed under sub-rule (4A) or sub-rule (4B) or both, if any, during the relevant period. . Amendment in rule 96. 6. In the said rules, in rule 96, for sub-rule (10), the following sub-rule shall

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ion No. 79/2017-Customs, dated the 13th October, 2017 published in the Gazette of India, Extraordinary, Part II, Section 3, sub-section (i),vide number G.S.R 1299 (E), dated the 13th October, 2017. . Amendment in rule 138A. 7. In the said rules, in rule 138A, in sub-rule (1), after the first proviso the following proviso shall be inserted, namely:- Provided further that in case of imported goods, the person in charge of a conveyance shall also carry a copy of the bill of entry filed by the importer of such goods and shall indicate the number and date of the bill of entry in Part A of FORM GST EWB-01. . Amendment in FORM GST REG-20. 8. In the said rules, for FORM GST REG-20, the following FORM shall be substituted, namely:- FORM GST REG-20 [See rule 22(4)] Reference No. – Date – To Name Address GSTIN/UIN Show Cause Notice No. Date- Order for dropping the proceedings for cancellation of registration This has reference to your reply filed vide ARN dated – in response to the show cause no

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me, if any – 3. Period: Quarter – Year – 4. Details of inputs/capital goods sent for job work (includes inputs/capital goods directly sent to place of business /premises of job worker) GSTIN/State in case of Unregistered job-worker Challan No. Challan date Description of goods UQC Quantity Taxable value Type of goods (Inputs/capital goods) Rate of tax (%) Central tax State/UT tax Integrated tax Cess 1 2 3 4 5 6 7 8 9 10 11 12 5. Details of inputs/capital goods received back from job worker or sent out from business place of job work (A) Details of inputs/ capital goods received back from job worker to whom such goods were sent for job work; and losses and wastes: GSTIN/ State of job worker if unregistered Challan No. issued by job worker under which goods have been received back Date of challan issued by job worker under which goods have been received back Description of goods UQC Quantity Original challan No. under which goods have been sent for job work Original challan date under wh

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rker issued by the Principal Invoice date in case supplied from premises of job worker issued by the Principal Description of goods UQC Quantity Original challan no. under which goods have been sent for job work Original challan date under which goods have been sent for job work Nature of job work done by job worker Losses & wastes UQC Quantity 1 2 3 4 5 6 7* 8* 9 10 11 Instructions: 1. Multiple entry of items for single challan may be filled. 2. Columns (2) & (3) in Table (A) and Table (B) are mandatory in cases where fresh challan are required to be issued by the job worker. Otherwise, columns (2) & (3) in Table (A) and Table (B) are optional. 3. Columns (7) & (8) in Table (A), Table (B) and Table (C) may not be filled where one-to-one correspondence between goods sent for job work and goods received back after job work is not possible. 6. Verification I hereby solemnly affirm and declare that the information given hereinabove is true and correct to the best of my kno

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orts F Advances on which tax has been paid but invoice has not been issued (not covered under (A) to (E) above) G Inward supplies on which tax is to be paid on reverse charge basis H Sub-total (A to G above) I Credit Notes issued in respect of transactions specified in (B) to (E) above (-) J Debit Notes issued in respect of transactions specified in (B) to (E) above (+) K Supplies / tax declared through Amendments (+) L Supplies / tax reduced through Amendments (-) M Sub-total (I to L above) N Supplies and advances on which tax is to be paid (H + M) above 5 Details of Outward supplies on which tax is not payable as declared in returns filed during the financial year A Zero rated supply (Export) without payment of tax B Supply to SEZs without payment of tax C Supplies on which tax is to be paid by the recipient on reverse charge basis D Exempted E Nil Rated F Non-GST supply G Sub-total (A to F above) H Credit Notes issued in respect of transactions specified in A to F above (-) I Debit

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om registered persons liable to reverse charge (other than B above) on which tax is paid and ITC availed Inputs Capital Goods Input Services E Import of goods (including supplies from SEZs) Inputs Capital Goods F Import of services (excluding inward supplies from SEZs) G Input Tax credit received from ISD H Amount of ITC reclaimed (other than B above) under the provisions of the Act I Sub-total (B to H above) J Difference (I – A above) K Transition Credit through TRAN-I (including revisions if any) L Transition Credit through TRAN-II M Any other ITC availed but not specified above N Sub-total (K to M above) O Total ITC availed (I+N above) 7 Details of ITC Reversed and Ineligible ITC as declared in returns filed during the financial year A As per Rule 37 B As per Rule 39 C As per Rule 42 D As per Rule 43 E As per section 17(5) F Reversal of TRAN-I credit G Reversal of TRAN-II credit H Other reversals (pl. specify) I Total ITC Reversed (A to H above) J Net ITC Available for Utilization (

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rticulars of the transactions for the previous FY declared in returns of April to September of current FY or upto date of filing of annual return of previous FY whichever is earlier 10 Description Taxable Value Central Tax State Tax/UT Tax Integrated Tax Cess 1 2 3 4 5 6 Supplies/tax declared through Amendments (+) (net of debit notes) 11 Supplies/ tax reduced through Amendments (-) (net of credit notes) 12 Reversal of ITC availed during previous financial year 13 ITC availed for the previous financial year 14 Differential tax paid on account of declaration in 10 & 11 above Description Payable Paid 1 2 3 Integrated Tax Central Tax State/UT Tax Cess Interest Pt. VI Other Information 15 Particulars of Demands and Refunds Details Central Tax State Tax / UT Tax Integrated Tax Cess Interest Penalty Late Fee/Others 1 2 3 4 5 A Total Refund claimed B Total Refund sanctioned C Total Refund Rejected D Total Refund Pending E Total demand of taxes F Total taxes paid in respect of E above G To

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ion in output tax liability the benefit thereof has been/will be passed on to the recipient of supply. Signature Name of Authorised Signatory Designation / Status Place Date Instructions: – 1. Terms used: a. GSTIN: Goods and Services Tax Identification Number b. UQC: Unit Quantity Code c. HSN: Harmonized System of Nomenclature Code 2. The details for the period between July 2017 to March 2018 are to be provided in this return. 3. Part II consists of the details of all outward supplies & advances received during the financial year for which the annual return is filed. The details filled in Part II is a consolidation of all the supplies declared by the taxpayer in the returns filed during the financial year. The instructions to fill Part II are as follows: Table No. Instructions 4A Aggregate value of supplies made to consumers and unregistered persons on which tax has been paid shall be declared here. These will include details of supplies made through E-Commerce operators and are to

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supplies in the nature of deemed exports on which tax has been paid shall be declared here. Table 6C of FORM GSTR-1 may be used for filling up these details. 4F Details of all unadjusted advances i.e. advance has been received and tax has been paid but invoice has not been issued in the current year shall be declared here. Table 11A of FORM GSTR-1 may be used for filling up these details. 4G Aggregate value of all inward supplies (including advances and net of credit and debit notes) on which tax is to be paid by the recipient (i.e.by the person filing the annual return) on reverse charge basis. This shall include supplies received from registered persons, unregistered persons on which tax is levied on reverse charge basis. This shall also include aggregate value of all import of services. Table 3.1(d) of FORM GSTR-3B may be used for filling up these details. 4I Aggregate value of credit notes issued in respect of B to B supplies (4B), exports (4C), supplies to SEZs (4D) and deemed ex

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s on which tax is payable by the recipient on reverse charge basis. Details of debit and credit notes are to be mentioned separately. Table 4B of FORM GSTR-1 may be used for filling up these details. 5D,5E and 5F Aggregate value of exempted, Nil Rated and Non-GST supplies shall be declared here. Table 8 of FORM GSTR-1 may be used for filling up these details. The value of no supply shall also be declared here. 5H Aggregate value of credit notes issued in respect of supplies declared in 5A,5B,5C, 5D, 5E and 5F shall be declared here. Table 9B of FORM GSTR-1 may be used for filling up these details. 5I Aggregate value of debit notes issued in respect of supplies declared in 5A,5B,5C, 5D, 5E and 5F shall be declared here. Table 9B of FORM GSTR-1 may be used for filling up these details. 5J & 5K Details of amendments made to exports (except supplies to SEZs) and supplies to SEZs on which tax has not been paid shall be declared here. Table 9A and Table 9C of FORM GSTR-1 may be used for

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shall be declared here. It may be noted that the total ITC availed is to be classified as ITC on inputs, capital goods and input services. Table 4(A)(5) of FORM GSTR-3B may be used for filling up these details. This shall not include ITC which was availed, reversed and then reclaimed in the ITC ledger. This is to be declared separately under 6(H) below. 6C Aggregate value of input tax credit availed on all inward supplies received from unregistered persons (other than import of services) on which tax is payable on reverse charge basis shall be declared here. It may be noted that the total ITC availed is to be classified as ITC on inputs, capital goods and input services. Table 4(A)(3) of FORM GSTR-3B may be used for filling up these details. 6D Aggregate value of input tax credit availed on all inward supplies received from registered persons on which tax is payable on reverse charge basis shall be declared here. It may be noted that the total ITC availed is to be classified as ITC on

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and input tax credit declared in row B to H shall be declared here. Ideally, this amount should be zero. 6K Details of transition credit received in the electronic credit ledger on filing of FORM GST TRAN-I including revision of TRAN-I (whether upwards or downwards), if any shall be declared here. 6L Details of transition credit received in the electronic credit ledger after filing of FORM GST TRAN-II shall be declared here. 6M Details of ITC availed but not covered in any of heads specified under 6B to 6L above shall be declared here. Details of ITC availed through FORM ITC-01 and FORM ITC-02 in the financial year shall be declared here. 7A,7B, 7C, 7D,7E, 7F,7G and7H Details of input tax credit reversed due to ineligibility or reversals required under rules 37, 39,42 and 43 of the CGST Rules, 2017 shall be declared here. This column should also contain details of any input tax credit reversed under section 17(5) of the CGST Act, 2017 and details of ineligible transition credit claime

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lared here. Table 4(A)(5) of FORM GSTR-3B may be used for filling up these details. 8E & 8F Aggregate value of the input tax credit which was available in FORM GSTR-2A(table 3 & 5 only) but not availed in any of the FORM GSTR-3B returns shall be declared here. The credit shall be classified as credit which was available and not availed or the credit was not availed as the same was ineligible. The sum total of both the rows should be equal to difference in 8D. 8G Aggregate value of IGST paid at the time of imports (including imports from SEZs) during the financial year shall be declared here. 8H The input tax credit as declared in Table 6E shall be auto-populated here. 8K The total input tax credit which shall lapse for the current financial year shall be computed in this row. 5. Part IV is the actual tax paid during the financial year. Payment of tax under Table 6.1 of FORM GSTR-3B may be used for filling up these details. 6. Part V consists of particulars of transactions for t

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r previous financial year, whichever is earlier shall be declared here. Table 4(B) of FORM GSTR-3B may be used for filling up these details. 13 Details of ITC for goods or services received in the previous financial year but ITC for the same was availed in returns filed for the months of April to September of the current financial year or date of filing of Annual Return for the previous financial year whichever is earlier shall be declared here. Table 4(A) of FORM GSTR-3B may be used for filling up these details. 7. Part VI consists of details of other information. The instructions to fill Part VI are as follows:- Table No. Instructions 15A, 15B, 15C and 15D Aggregate value of refunds claimed, sanctioned, rejected and pending for processing shall be declared here. Refund claimed will be the aggregate value of all the refund claims filed in the financial year and will include refunds which have been sanctioned, rejected or are pending for processing. Refund sanctioned means the aggregat

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med supplies for goods which were sent on approval basis but were not returned to the principal supplier within one eighty days of such supply shall be declared here. 17 & 18 Summary of supplies effected and received against a particular HSN code to be reported only in this table. It will be optional for taxpayers having annual turnover upto₹ 1.50 Cr. It will be mandatory to report HSN code at two digits level for taxpayers having annual turnover in the preceding year above ₹ 1.50 Cr but upto₹ 5.00 Cr and at four digits level for taxpayers having annual turnover above ₹ 5.00 Cr. UQC details to be furnished only for supply of goods. Quantity is to be reported net of returns. Table 12 of FORM GSTR-1 may be used for filling up details in Table 17. 19 Late fee will be payable if annual return is filed after the due date. FORM GSTR-9A (See rule 80) Annual Return (For Composition Taxpayer) Pt. I Basic Details 1 Financial Year 2 GSTIN 3A Legal Name 3B Trade Name (i

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returns filed during the financial year A Inward supplies from registered persons (other than 7A above) B Import of Goods Pt. III Details of tax paid as declared in returns filed during the financial year 9 Description Total tax payable Paid 1 2 3 Integrated Tax Central Tax State/UT Tax Cess Interest Late fee Penalty Pt. IV Particulars of the transactions for the previous FY declared in returns of April to September of current FY or upto date of filing of annual return of previous FY whichever is earlier Description Turnover Central Tax State Tax/UT Tax Integrated Tax Cess 1 2 3 4 5 6 10 Supplies / tax (outward) declared through Amendments (+) (net of debit notes) 11 Inward supplies liable to reverse charge declared through Amendments (+) (net of debit notes) 12 Supplies / tax (outward) reduced through Amendments (-) (net of credit notes) 13 Inward supplies liable to reverse charge reduced through Amendments (-) (net of credit notes) 14 Differential tax paid on account of declaration m

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d in case of any reduction in output tax liability the benefit thereof has been/will be passed on to the recipient of supply. Signature Name of Authorised Signatory Designation / Status Date Place Instructions: – 1. The details for the period between July, 2017 to March, 2018 shall be provided in this return. 2. Part I consists of basic details of taxpayer. The instructions to fill Part I are as follows :- Table No. Instructions 5 Aggregate turnover for the previous financial year is the turnover of the financial year previous to the year for which the return is being filed. For example for the annual return for FY 2017-18, the aggregate turnover of FY 2016-17 shall be entered into this table. It is the sum total of turnover of all taxpayers registered on the same PAN. 3. Part II consists of the details of all outward and inward supplies in the financial year for which the annual return is filed. The instructions to fill Part II are as follows:- Table No. Instructions 6A Aggregate valu

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Aggregate value of all inward supplies received from registered persons on which tax is payable by the supplier shall be declared here. Table 4A and Table 5 of FORM GSTR-4 may be used for filling up these details. 8B Aggregate value of all goods imported during the financial year shall be declared here. 4. Part IV consists of the details of amendments made for the supplies of the previous financial year in the returns of April to September of the current FY or date of filing of Annual Return for previous financial year (for example in the annual return for the FY, 2017-18, the transactions declared in April to September 2018 for the FY, 2017-18 shall be declared), whichever is earlier. The instructions to fill Part V are as follows: Table No. Instructions 10,11,12,13 and 14 Details of additions or amendments to any of the supplies already declared in the returns of the previous financial year but such amendments were furnished in Table 5 (relating to inward supplies) or Table 7(relatin

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for which an order confirming the demand has been issued by the adjudicating authority has been issued shall be declared here. Aggregate value of taxes paid out of the total value of confirmed demand in 15E above shall be declared here. Aggregate value of demands pending recovery out of 15E above shall be declared here. 16A Aggregate value of all credit reversed when a person opts to pay tax under the composition scheme shall be declared here. The details furnished in FORM ITC-03 may be used for filling up these details. 16B Aggregate value of all the credit availed when a registered person opts out of the composition scheme shall be declared here. The details furnished in FORM ITC-01 may be used for filling up these details. 17 Late fee will be payable if annual return is filed after the due date. ; Amendment in FORM GST EWB-01 In the said rules, in FORM GST EWB-01, in the Notes, in serial number 7, in the Table, against Code 4 in the first column, for the letters and word SKD or CKD

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GST – States – KA.NI.-2-1963/XI-9(42)/17 – Dated:- 10-10-2018 – Uttar Pradesh Shasan Sansthagat Vitta, Kar Evam Nibandhan Anubhag-2 NOTIFICATION NO. KA.NI.-2-1963/XI-9(42)/17-U.P.GST Rules-2017, Order-(148)-2018 Lucknow : Dated : October 10, 2018 In exercise of the powers conferred by Section 164 of the Uttar Pradesh Goods and Services Tax Act, 2017 (U.P. Act no. 1 of 2017), read with section 21 of the Uttar Pradesh General Clause Act, 1904 (U.P. Act no. 1 of 1904), the Governor is pleased to make the following rules with a view to amending the Uttar Pradesh Goods and Services Tax Rules, 2017, namely:- AMENDMENTS Short title and commencement 1. (1) These rules may be called the Uttar Pradesh Goods and Services Tax (Twenty One Amendment) Ru

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2018 (11) TMI 661 – AUTHORITY FOR ADVANCE RULINGS, CHHATTISGARH – 2018 (19) G. S. T. L. 122 (A. A. R. – GST) – Liability of GST – supply of goods as well as service – composite supply – business of job work activity of custom milling of paddy involving milling activity, transportation of rice and usage charges of gunny bags – Held that:- The transportation of paddy and rice are conditionally exempted under specific Notifications. All supplies would be treated as exempted supply only when the transportation works would be given full and unconditional exemption under corresponding Notification. On account of conditional exemption, the supplies involved in the instant case in hand would be exigible to tax.
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The part-exemption as sought by the applicant for the service supply of transportation of paddy and rice is not eligible to them, the same being under a false premise – The said supply involved here cannot be separated from the tax computation of composite supply – the custom mi

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Savitri Rice Mill, Sahdeopali, Tehsil-Pussore, Dist Raigarh (C.G.) 496001 (GSTIN-22AABFT3379G1ZA) has filed the application U/s 97 of the Chhattisgarh Goods & Services Tax Act, 2017 requesting advance ruling regarding tax liability in the business of job work activity of custom milling of paddy involving milling activity, transportation of rice and usage charges of gunny bags. 2. Facts of the case:- I. M/s. Taranjeet Singh Tuteja & Brothers, Opp. Savitri Rice Mill, Sahdeopali, Tehsil-Pussore, Distt – Raigarh (C.G.) (hereinafter referred to as the applicant) has executed an agreement for custom milling of paddy with the Chhattisgarh State Marketing Co-operative Federation Limited, Raipur (C.G.) having GSTIN – 22AAAAC0934E1ZJ (here-in-after to be referred a MARKFED) on dated 16-11-2017 for execution of custom milling of paddy. i.e. Production of rice on job work. II. In the execution of job work of custom milling, applicant has to collect / procure paddy from Primary Co-operativ

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. For such balance gunny bags which gets retained by the applicant, MARKFED withholds some amount from the applicant while settling the bills relating to custom milling of applicant. In case the balance gunny bags are returned back, MARKFED refunds the withheld amount partially if such gunny bags are taken again by the applicant for another job work of custom milling and otherwise refunds the full withheld amount relating to such gunny bags. VII. In some cases, if applicant provides their own gunny bags to the MARKFED at the time of taking delivery of paddy (applicant does not execute job of packing of paddy in gunny bags), charges for usages of gunny bags (supply of tangible goods) is given by the MARKFED. VIII. As per the guidelines of Chhattisgarh custom milling order, 2016 and letter no. F-4-6/Food/2016/29/2436, dated 23-10-2017 of Department of Food, Civil Supplies and Consumer Protection, Mantralay, Raipur, a Contract no. AC112017410015 has been executed on 16-11-2017 (Thursday),

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isgarh. 4. Usage charges of gunny bags @3.75/- per bag or as fixed time to time by the MARKFED. 3. Contention of the Applicant :- The applicant has mentioned following details regarding rice milling and its transportation as per the contract with MARKFED – I. On the issue of service of transportation of paddy/rice the applicant submits that this activity of service is exempted under Sr.No. 21 and 18 of Notification no. 12/2017(State/Central). II. On the issue of service of custom milling of paddy the applicant states that the rate of tax on milling charges of paddy should be 5% (2.5% SGST +2.5% CGST) under Notification no. 31/2017-CT(R) Notification no. 11/2017-CT (Rate) dated 28-06-2017 Serial No. 26. III. The incentive as decided by the State Govt. of Chhattisgarh and given by the MARKFED should be considered as subsidy and not be included in taxable value under Section 2(31) of the CGST Act 2017 and should not be included in consideration of milling charges. IV. The Rate of tax on u

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8-06-2017 Serial No. 26. (c) The incentive as decided by the State Govt. of Chhattisgarh and given by the MARKFED should be considered as subsidy and not be included in taxable value under Section 2(31) of the CGST Act 2017 and should not be included in consideration of milling charges. (d) The Rate of tax on usage charges of Gunny Bags should be taxable at 5% GST as applicable on supply of gunny bags. Two exempt supplies i.e. transportation of paddy, rice and incentive amount should be individually computed while determining composite supply for the job work of rice milling and packing materials gunny bags supply. According to section 8(a) which defines composite supply, two or more taxable supplies attracts tax liability. No tax liability should be charged on the amount received from other exempt supply as per their contract. Thus, the applicant has highlighted two major points, thereby opining that the amount received on account of job work of rice milling and supply of packing mate

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mp; Brothers has shown four different supplies as per the conditions of the contract with the MARKFED in which the amount is received for three service supplies and one goods supply, the following being the three service supplies involved:- i. Milling of paddy – On the issue of service of custom milling of paddy the applicant states that the rate of tax on milling charges of paddy should be 5% (2.5% SGST +2.5% CGST) under Notification no. 31/2017-CT(R) Notification no. 11/2017-CT (Rate) dated 28-06-2017 Serial No. 26. ii. Transportation of paddy and rice – the applicant submits that this activity of service is exempted under Sr.No. 21 and 18 of Notification no. 12/2017(State/Central). As per the notifications issued under the provisions of State GST Act, the above mentioned both the supplies are acceptable as individual supplies. III. Incentive for custom milling of paddy – The applicant has requested to consider the incentive amount as exempted, citing it as subsidy. Whereas, the appl

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blic or it is provided to a person or a business by various Government, Non Government agencies, to rationalise the cost impact directly/indirectly on the public. On the other hand the incentive is provided to a specific person or business for recognition of noble work or to provide motivation for a specific work. The applicant has mentioned about incentive amount apart from the milling charges for custom milling as per the contract with the MARKFED. This contract nowhere mentions about the I subsidy . Subsidy necessarily is extended in the larger interest of public at large. The contention of the applicant regarding the tax liability on the incentive amount erroneously assuming the same to be as subsidy, claiming treatment of such amount received as incentive for the services supplied, as exempt supply is not sustainable under law and merits rejections Thus the tax liability on the considerations received for such supply of services received is to be charged @5% GST as per the Notific

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pplies Corporation Units in the same contract. The amount received from the compensation of packing material gunny bags during transportation and the job work of custom milling are also the inseparable part of the job of milling work. In this way all the supplies are interrelated and can in no way be vivisected in the said contract, the primary and principal work being custom milling of paddy. (b) For such supplies CG GST Act specifically provides as under :- Section-2(30):- composite supply means a supply made by a taxable person to a recipient consisting of two or more taxable supplies of goods or services or both, or any combination thereof, which are naturally bundled and supplied in conjunction with each other in the ordinary course of business, one of which is a principal supply; Illustration: Where goods are packed and transported with insurance, the supply of goods, packing materials, transport and insurance is a composite supply and supply of goods is a principal supply; Secti

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rice. (c) Under composite supply, two or more taxable supplies and amount of exempt supply cannot be severed or artificially vivisected. In this context, the following provisions of CGGST Act is also squarely applicable here : Section-2(47):-. 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, or under section 6 of the Integrated Goods and Services Tax Act, and includes non-taxable supply; Section-2(108) : – taxable supply means a supply of goods or services or both which is leviable to tax under this Act; On the basis of above provisions it gets abundantly clear that the transportation work by a registered person with commercial purpose under the provisions of GST Act and as per the issued relative Notifications are taxable supplies. The transportation of paddy and rice are conditionally exempted under specific Notifications. All supplies would be treated as exempted supply only when the

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/2018 The ruling so sought by the Applicant is accordingly answered as under:- As per Agreement No: AC112017410015 Dated 16.11.2017 with Chhattisgarh State Marketing Co-Operative Federation Limited, the applicant has been allotted the principal job work of Custom Milling of Paddy for manufacturing of rice, along with custom milling they will also get the payment towards the transportation of paddy & Rice, usage of gunny begs for packing of Rice and incentives as an additional charge for custom milling. There being a single contract for all above supplies of goods & services and as the said contract comprises of two or more supplies (i.e. transportation, supply of packing material & incentives) and one of which is principal supply i.e. custom milling of paddy, it shall treated as composite supply as per section 2(30) of Chhattisgarh GST Act 2017 and as per the provision of section 8 (a) of Chhattisgarh GST Act 2017. Accordingly the tax liability on a composite supply shall b

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2018 (11) TMI 1570 – GUJARAT HIGH COURT – TMI – Vires of Goods and Service Tax (Compensation to States) Act, 2017 and the Notification No.01/2017 dated 28.06.2017 and No.02/2017 dated 01.07.2017 under the said Act. – R/SPECIAL CIVIL APPLICATION NO. 18125 of 2017 With R/SPECIAL CIVIL APPLICATION NO. 20183 of 2017 With R/SPECIAL CIVIL APPLICATION NO. 20184 of 2017 With R/SPECIAL CIVIL APPLICATION NO. 23286 of 2017 Dated:- 10-10-2018 – MR AKIL KURESHI AND MR B.N. KARIA, JJ. For The Petitioner : M

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GST – States – 15/2018-State Tax – Dated:- 10-10-2018 – KERALA STATE GOODS AND SERVICES TAX DEPARTMENT NOTIFICATION No. 15/2018-State Tax No. CT/22046/2017-C1. Thiruvananthapuram, 10th October 2018. In exercise of the powers conferred by section 48 of the Kerala State Goods and Services Tax Act, 2017 (20 of 2017) read with sub-rule (3) of rule 83 of the Kerala State Goods and Services Tax Rules, 2017, the Commissioner, on the recommendations of the Council, hereby notifies the National Academy

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2018 (12) TMI 144 – AUTHORITY FOR ADVANCE RULING, MAHARASHTRA – 2019 (20) G. S. T. L. 442 (A. A. R. – GST) – Levy of GST – supply of goods located outside India to customers within India without physically bringing the goods to India – out & out supplies, export supplies or exempted supplies? – High seas sales.
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Held that:- The applicant would be purchasing goods from M/s. Innospec on the basis of purchase orders received from their customer in India and the said goods would be delivered by M/s. Innospec from outside India to the ship/ vessel of the customer which is also outside India (non-taxable territory) i.e. Singapore. The order received by the applicant from their customers in India and order placed by them on M/s. Innospec are back to back orders. Thus it is very clear that the goods are delivered by M/s. Innospec from a place situated outside the taxable territory of India to their customer's vessel which is also located outside the taxable territory of India – the trans

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to be levied and collected at the time of import into India. The goods are considered to be imported into India only after they clear the customs frontier after compliance Of applicable procedures and payment of duty as applicable – as per Section 7(2) of the IGST Act and proviso to Section 5(1) of the IGST Act it is very clear that in respect of import goods there is no levy and collection except in accordance with the provisions of Section 12 of the Customs Act, 1962 and Section 3 of the Customs Tariff Act, 1975.
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Thus in case of goods supplied on an out an out basis as is in the present case, there is no levy till the time of their customs clearance in compliance with Section 12 of the Customs Act and Section 3 of the Customs Tariff Act – In view of this the import goods sold from and to a non-taxable territory, though they are clearly in the nature of inter-state supply would come in the category of “exempt supply” as no duty is leviable on them except in accordance with pro

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PROCEEDINGS (Under section 98 of the Central Goods and Services Tax Act, 2017 and the Maharashtra Goods and Services Tax Act, 2017) The present application has been filed under section 97 of the Central Goods and Services Tax Act, 2017 and the Maharashtra Goods and Services Tax Act, 2017 [hereinafter referred to as the CGST Act and MGST Act ] by Enmarol Petroleum India Pvt. Ltd., the applicant, seeking an advance ruling in respect of the following ISSUE.. 1) Whether the applicant is liable to pay GST on the supply of goods located outside India to customers within India without physically bringing the goods to India? 2) Whether the out & out supplies in the facts of the present case Will be considered as export supplies or exempted supplies for the purpose of the GST? At the outset, we would like to make it clear that the provisions of both the CGST Act and the MGST Act are the same except for certain provisions. Therefore, unless a mention is specifically made to such dissimilar p

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cation, one M/s. AZA Shipping Pvt. Ltd., an Indian Company, placed a purchase order no. 721 on the Applicant dated 02.02.2018, requisition no 2000188 dated 08.01.2018, for 75 Ltrs. of Innospec Fuel Specialities Octamar L15 Product. The said requirement has been specifically placed for the vessel M T CHAFA to be delivered to the vessel at Singapore Port on 13.01.2018 as per the email dated 08.012018, Copy of the P. O. No. 721 dated 02.02.2018 is marked as Annexure – 3. Copy of the email dated 0801.2018 from Aza Shipping to Applicant is marked and annexed herewith as Ann – 4. 1.4. On receipt of the above confirmed purchase order from the Aza Shipping, the applicant placed purchase order on the M/s. Innospec Limited vide P.O. No. EPM-1718-608 dated 08.01.2018 for delivering 75 Litres of OCTAMAR LI-5 to vessel M T Chafa at Singapore. copy of the P.O. No. EPM-1718-608 dated 08.01.2018 raised by the applicant on the Innospec Limited is marked and annexed as Annexure – 5. 1.5. The said order

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marked and annexed herewith as Annexure – 9. 1.9. The Applicant states that, the Applicant has not charged GST on the invoice raised to AZA Shipping considering the said Supply to be non-taxable under GST in India. Statement containing the applicant's interpretation of law and or facts as the case may be, in respect of the aforesaid question(s) 1. The Applicant is not liable to charge on the out and out transaction. 1.1. The Applicant submits that the above supply effected by the Applicant is not liable for GST in India on following grounds: a) The said supply does not take place in India b) The said supply is an out & out transaction c) The place of supply for the said transaction cannot be determined under Section 10 of Section 11 of the IGST Act, 2017 d) Section 7 (5) of the IGST Act, 2017 is also not applicable in the facts of the present case e) The goods are not consumed in any state in India. 1.2. The above grounds are elaborated in detail herein below: 2. The supply in

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f India means territory of India as defined in Article 1 of the Constitution of India and its territorial waters, seabed and sub-soil underlying such waters, continental shelf, exclusive economic zone or any other maritime zone as referred to in the Territorial Waters, Continental Shelf, Exclusive Economic Zone and other Maritime Zones Act, 1976, and the air space above its territory and territorial waters. 2.5. The Applicant submits that, in the present facts of the case, though the supplier and the recipient is located in India, the supply in the form of sale of goods has taken place in Singapore where the goods are located and the delivery has been given at Singapore Port. 2.6. The said territory of Singapore does not fall under the definition of India and hence Such supply would not be covered under the ambit of CGST Act, 2017 or IGST Act, 2017. 2.7. Hence, the aforesaid transaction would not be liable to GST in India. 3. The Applicant submits that the above transaction in question

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sent case, admittedly there is no movement of goods into India or from India. The goods are in Singapore Port only. Thus, the above transaction can neither be considered as import or export of the goods. 3.7. Secondly, the Place of supply of the of an import or export of goods is determined as per Section 11 of the IGST Act, extracted as under. 11. The place of supply of goods, (a) imported into India shall be the location of the importer; (b) exported from India shall be the location outside India. 3.8. It is submitted, the place of supply as per Section 11 can be determined only in case the transaction has resulted into import of goods or export of goods from India. Where there is no import of goods or export of goods, the above provision of Section 11 for determining the place of supply will not apply. 3.9. Hence, the applicant submits that the above transaction in question is an out and out transaction not liable to GST in India. 4. The Applicant further submits that, the place of

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import and export. Section 12 is for place of supply of services for domestic transactions. Section 13 is for determining place of supply of service for international transaction. 4.5. Thus, it can be concluded that Section 10 if the IGST Act, 2017 is applicable for place of supply of goods in a domestic transaction. 4.6. In the present case, since the supply of goods is entirely outside India and not leg of the transaction is even remotely taking place in India, place of supply cannot be determined under Section 10 of the IGST Act, 2017. 5. The Applicant submits that Section 7(5) of the IGST Act, 2017 is also not applicable in the facts of the present case. 5.1. The Applicant submits that Section 7(5)(a) of the IGST Act, 2017 provides that where the supplier is located in India and the place of the supply is outside India, then the supply will be treated as place of supply in the course of inter state trade or commerce. The said Section 7(5) is extracted below for ready reference: Se

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y case, even if it is held that location of the supplier has to be interpreted contextually, then the same has to be located qua a particular supply made under the GST Act. Since, in the present case, the sale is taking place outside India, it is not a supply under the GST Act and hence location of the supplier qua that sale cannot be determined under the Act. 5.4. Secondly, as explained above, the place of the supply for the transaction in question cannot be determined under the GST Act, neither under Section 10 nor under Section 11. Thus, even the second variable for Section 7(5)(a) is not determinable. 5.5. Thus, in view of the above submission, even Section 7(5)(a) will not be applicable in the facts of the present case. 6. The Applicant submits that the GST is destination based consumption tax. Since there is no consumption in India, there can be levy of GST. 6.1. Lastly, the Applicant submits that, GST is a destination based consumption tax. The same is taxable in India only if t

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ary hearing on 08.08.2018 when Sh. Rahul Thakkar, Advocate along with Ms. Ritu Chaudhary, Director appeared and made written and oral submissions for admission of application as per contentions in their ARA, Jurisdictional Officer, Sh. Ashok G Hedau, State Tax Officer (C-610), Nodal Div. 3, Mumbai appeared & stated that they would be making submissions in due course. The application was admitted and called for final hearing on 05.09.2018. Shri Rahul Thakkar, Advocate along with Ms. Ritu Chaudhary, Director appeared and made oral and written submissions. Jurisdictional Officer, Sh. Sanjay Shegaokar, State Tax Officer (C-610), Nodal Divn. 3, Mumbai appeared and made written submissions. 05. OBSERVATIONS We have gone through the facts of the case, documents on record and submissions made by the applicant. The issue put before us is in respect of a transaction which is/would be on the lines as below: – 1. The applicant is engaged in the business of the trading in marine fuel additive c

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rder Confirmation document dated 10.01.2018. 1.6. Thereafter on 11.01.2018, Innospec Limited delivered the goods through its Singapore Logistics Partner M/S. CWT Logistics Pte. Ltd. to the vessel MT Chafa at Singapore Port vide delivery order dated 11.01.2018 duly received by the vessel's Chief Engineer. 1.7. Thereafter, Innospec Limited raised invoice on the applicant on 13.01.2018 vide Invoice No. VSS1002165 in USD. 1.8. Thereafter, the Applicant raised an invoice on its customer M/s. AZA Shipping Pvt. Ltd. vide Invoice No. 2017-18-111 dated 18.01.2018 in INR. 1.9. Applicant states that, the Applicant has not charged GST on the invoice raised to AZA Shipping considering the said supply to be non-taxable under GST in India. In continuation we find that the applicant has contended that GST is not liable to be paid by them on this out and out transactions on the following grounds: a) The said supply does not take place in India b) Said supply is an out & out transaction c) The p

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taxable territory) i.e. Singapore. The order received by the applicant from their customers in India and order placed by them on M/s. Innospec are back to back orders. Thus it is very clear that the goods are delivered by M/s. Innospec from a place situated outside the taxable territory of India to their customer's vessel which is also located outside the taxable territory of India. Thus we find that the transaction is similar to the selling of goods on High Seas Sale basis since in both the cases the goods purchased do not cross the customs frontiers of India. In view of the above facts we would be required to refer to the provisions of IGST Act, 2017. First of all to confirm the nature of supply of present goods i.e. whether inter-state or intra-state we are required to refer to Chapter IV of the IGST ACT, 2017, which reads as under:- CHAPTER IV DETERMINATION OF NATURE OF SUPPLY Inter-State supply 7. (1) Subject to the provisions of section 10, supply of goods, where the location

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d to in section 15. We find that Section 7(2) of the IGST Act reads as under:- Section 7(2) Supply of goods imported into the territory of India, till they cross the customs frontiers of India, shall be treated to be a supply of goods in the course of inter-State trade or commerce Thus it is very clear that supply of goods imported into the territory of India till they cross the customs frontier shall be treated as supply of goods in the course of inter-state trade or commerce. From the transactions placed by the applicant before us there is no doubt that the goods of the applicant would be imported goods if they are brought from outside the country into India and it is clear that when the said goods are delivered/supplied from a place outside India to a place outside India, these goods have not crossed the customs frontiers of India Thus clearly the transaction in these goods are in the nature of inter-state supply as per Section 7(2) of the IGST Act. Now when we are clear that the su

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t at the point when duties of customs are levied on the said goods under section 12 of the Customs Act, 1962. (2) ………………………. (3) ………………………. (4) ………………….; (5) ……………………….; We find that proviso to Section 5(1) of the IGST Act states that Provided that the integrated tax on goods imported into India shall be levied and collected in accordance with the provisions of section 3 of the Customs Tariff Act, 1975 on the value as determined under the said Ad at the point when duties of customs are levied on the said goods under section 12 of the Customs Act, 1962 . Thus from the above it is clear that integrated tax on goods imported into India is to be levied and collected in accordance with Section 3 of the Customs Tariff Act, 1975 and Section 12 of the Customs

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old from and to a non-taxable territory, though they are clearly in the nature of inter-state supply would come in the category of exempt supply as no duty is leviable on them except in accordance with proviso to Section 5(1) of the IGST Act. We find that in the definition of exempt supply as given in Section 2(47) of the CGST Act is as under:- Section 2(47) of the Central Goods and Services Tax (CGST) Act, 2017, 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 Il, or under section 6 of the Integrated Goods and Services Tax Act, and includes non-taxable supply . Further we find that Section 2(78) of the CGST Act defines non-taxable supply which is as under:- As per Section 2(78) of the Central Goods and Services Tax (CGST) Act, 2017, non-taxable supply means a supply of goods or services or both which is not leviable to tax under this act or under the Integrated Goods and Services Tax Act . T

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Customs – 31/2018 – Dated:- 10-10-2018 – GOVERNMENT OF INDIA MINISTRY OF FINANCE, DEPARTMENT OF REVENUE CENTRAL BOARD OF INDIRECT TAXES AND CUSTOMS OFFICE OF THE COMMISSIONER OF CUSTOMS CUSTOM HOUSE, WILLINGDON ISLAND, COCHIN-682009 An IS 15700 certified custom house Website: www.cochincustoms.gov.in E-mail: commr@cochincustoms.gov.in Control room: 0484-2666422 Fax: 0484-2668468 Ph: 0484-2666861-64/774/776 F. No. C1/05/2017-TUCus. Date 10.10.2018 TRADE NOTICE NO. 31/2018 Sub: reg. Kind Attenti

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Customs – PUBLIC NOTICE NO. 40/2018 – Dated:- 10-10-2018 – OFFICE OF THE PRINCIPAL COMMISSIONER OF CUSTOMS CUSTOM HOUSE: PORT AREA: VISAKHAPATNAM – 530 035 F. No. P3/06/2017-Stats(AM).Pt. II Date: 10.10.2018 PUBLIC NOTICE NO. 40/2018 Sub: Reg. Numerous representations have been received by Board from exporters/export associations regarding cases where IGST Refunds have not been granted because higher rate of drawback has been claimed or where higher rate and lower rate were identical. 2. The issue has been examined extensively by Board. The legal provisions related to Drawback claims are as under: 2.1 Notes and condition (11) of Notification No. 131/2016-Cus(NT) dated 31.10.2016 (as amended by Notification No. 59/2017-Cus(NT) dated 29.06.

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e said Schedule shall be applicable to export of a commodity or product if the exporter satisfies the following conditions, namely – … … … (ii) If the goods are exported on payment of integrated goods and service tax, the exporter shall declare that no refund of integrated goods and services tax paid on export product shall be claimed ..…. . 2.3 In terms of Rules 12 and 13 of the Customs, Central Excise Duties and Service Tax Drawback Rules, 1995, the shipping bill itself is treated as claim for drawback in terms of the declarations made on the shipping bill. 2.4 The declarations required in terms of above Notes and Conditions and provisions of the Drawback Rules are made electronically in the EDI System. When co

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Goods and Services Tax – Started By: – DEEPAK SHARMA – Dated:- 9-10-2018 Last Replied Date:- 9-10-2018 – Sir,If we do business of redeemable coupon, e.g. one is manufacturing redeemable coupon, we purchase the same and sale it to pizza hut. on which value we need to charge GST for the sake of example. we sale 100 coupons of ₹ 50, and our sale value is ₹ 200, on which value we need to charge GST,OrWe manufacturing coupon on behalf of Pizza Hut, pizza hut ordered us to manufacture 100

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Customs – It would not be justified allowing exporters to avail IGST refund after initially claiming the benefit of higher drawback. There is no justification for re-opening the issue at this stage. – TMI Updates – Highlights

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Goods and Services Tax – Started By: – SHAHID HASHMI – Dated:- 9-10-2018 Last Replied Date:- 1-12-2018 – We are exporter. Hence we are getting MEIS/SEIS Script. We have planned to sale the same to other party. As per recent Notification, sales of script is come under exempted goods Chapter Heading No.4907. Our queries as follows: 1. Whether sale of the same is come under Section 17(2). 2. Whether we have to reverse GST ITC for the above sales. Since we are selling goods at zero rates in case of

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Goods and Services Tax – Jurisdiction of Central and State tax administrations under GST – Both the Central and State tax administrations shall have the power to take intelligence-based enforcement ac

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GST – States – Guidelines for Deductions and Payments of TDS by the DDOs Of State Government Authorities under GST. – TMI Updates – Highlights

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Goods and Services Tax – Classification of goods – Stainless Steel Chilly Cutter – The product Chilly Cutter made of Stainless Steel is classifiable under Heading 8210 00 00 and not under Heading 7323. – TMI Updates – Highlights

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Goods and Services Tax – Levy of GST – hospitality services – The applicant is liable to pay GST on the services from their hotel located in non-processing zone of Dahez Special Economic Zone to the c

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Goods and Services Tax – Classification of supply – Levy of GST – printing of various items – The supply of Aadhaar Cards are classifiable under heading 9989 of GST Tariff and attracts GST @ 12% – TMI Updates – Highlights

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Goods and Services Tax – GST – By: – L D Raj & Co – Dated:- 9-10-2018 Last Replied Date:- 6-2-2019 – Applicability of Reverse Charge Mechanism under sec 9(3) and 9(4) of CGST Act 2017 to a SEZ Unit or Developer Objective of this write up is to share our thought process on whether RCM u/s 9(3) & 9(4) applies to SEZ unit or Developer. Most of the popular forums and websites taken a skewed view based on the following notifications and Section 51 of SEZ Act has an overriding effect on inconsistencies caused by any other laws in force. Notification no: 18/2017 IGST rate exempts services imported by a SEZ unit or developer from the whole of IGST payable on that transaction. Similarly, around the same time notification no: 64/2017 Customs Exe

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– (i) bringing goods or receiving services, in a Special Economic Zone, by a Unit or Developer from a place outside India by land, sea or air or by any other mode, whether physical or otherwise; or (ii) receiving goods, or services by, Unit or Developer from another Unit or Developer of the same Special Economic Zone or a different Special Economic Zone Thus, its clear that import here necessarily means either goods or services must come from a place outside India i.e. supplier should be outside India. Supply from DTA ( Lawyer, GTA etc) to SEZ unit or developer is not an import. Under sec 7(5) of IGST Act, Supply to or from SEZ Unit or developer is defined as Inter-State Supply not as Import . So, we can take view that these notifications d

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– SEZ, addressed that gap by duly inserting key philosophies of GST through SEZ (Amendment) Rules, 2018. Especially rule 30(1) by inserting Zero-rated supply as defined u/s 16 of IGST Act and rule 30(2) to include the services for the first time. Thus, both the laws are now aligned, sec 51 of SEZ Act should not be referred to in this context. To conclude, Reverse Charge Mechanism u/s 9(3) and 9(4) applies to SEZ unit or developer, They should recognise this as a liability and discharge the same by cash payment. Tax Burden suffered can be availed as ITC and should be refund under rule 89(2)(a) & 9(b). Hope you find this useful, you can reach out to us further for any queries Best regards L Durai Raj durai@ldraj.in – Reply By Shashank Tol

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Goods and Services Tax – GST – By: – Dr. Sanjiv Agarwal – Dated:- 9-10-2018 – [In Re: Aditya Birla Retail Ltd.2018 (8) TMI 1072 – APPELLATE AUTHORITY FOR ADVANCE RULING MAHARASHTRA ], Appellate Authority for Advance Ruling vide its order dated 07.08.2018 affirmed the advance ruling pronounced by Authority for Advance Ruling to the effect that goods sold under trade name / brand name are liable to levy of GST. Aditya Birla Retail Limited ('the Appellant') is inter alia engaged in the processing and/or trading of a wide range of cereals, pulses and flour classifiable under Chapter 10 of the First schedule to the Customs Tariff Act, 1975. The subject goods are sold by the Appellant at its supermarket and hypermarket format stores, nam

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tores', is also registered under the Trademarks Act. However, from the 'More' stores, several categories of products, manufactured by different companies, are also sold. Such products may or may not be bearing a brand name. The applicant proposed to revise its packaging scheme of goods and the manner of sale to exclude from the packages the registered trademarks, namely 'More trademarks' and the 'Aditya Birla' logo. The proposed packaging of subject goods under two streams would accordingly bear the following details: Subject goods sold under Stream 1: The packaging would bear only details of the Appellant as the manufacturer and the customer care related details as mandated under the Subject Statutory Provisions

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a Birla Retail in exclusive MORE Stores . Customers not only identify goods with aforesaid brand name or logo but also with More stores owned by Aitya Birla Group of Companies. Thus, proposed change of removing brand name MORE and logo Aditya Birla Retail and replacing it with name Aditya Birla Retails Ltd. is not going to make any difference so far as establishing connection of goods with manufactures. Goods would continue to be sold in exclusive stores with packages having same style, color and nature of packing. Environment of sale of goods would also be same as website of appellant would continue to bear MORE Stores name and so would be Billing receipts. Further, generic terms like Choice , Superior etc. showing different quality of goo

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Goods and Services Tax – GST – By: – Mr. M. GOVINDARAJAN – Dated:- 9-10-2018 – GST laws The Central Government introduced a major tax reforms in indirect tax laws. The existing indirect laws except customs levied by the Central Government and State Governments are subsumed into one tax viz., Goods and Services Tax. The Central Government, for this purpose, amended the Constitution providing for subsuming of various indirect taxes and Central and States surcharges and cesses so far as they relate to supply of goods and services both on interstate and Intra State. Section 18 of the Amendment Act enabled the Parliament to levy a cess for five years to compensate the States for the loss of revenue on account of GST. The Central Government enacted the following Acts for the purpose of GST- Central Goods and Services Tax Act, 2017; Integrated Goods and Services Tax Act, 2017; Union Goods and Services Tax Act, 2017; Goods and Services Tax (Compensation to States) Act, 2017. To enforce the pr

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ases coal from Indian mines. The Finance Act, 2010 with effect from 01.07.2010 levied Clean Energy Cess which was in the nature of a duty of excise on the production of coal and was being collected at the time of removal of raw coal, raw lignite and raw peat from the mine to the factory. On the introduction of GST laws the law relating to Clean Energy Cess was repealed. The writ petitioner submitted a representation to the GST Council seeking set off of Clean Energy Cess against GST Compensation Cess. The writ petitioner filed a writ petition before the Delhi High Court. The Division Bench of the Delhi High Court passed an interim order on 25.08.2017. In the interim order dated 25.08.2017, the Division Bench observed that there is a prima facie case made out by the writ petitioner regarding lack of legislative competence of Parliament to enact Compensation to States Act, 2017. The High Court observed that cess is being levied on the same taxable event that is the subject matter of the

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lacks legislative competence. Section 18 of the Constitution (One Hundred and First Amendment) Act, 2016 does not empower the Parliament to levy cess and tax as it provides Parliament to make any law to provide compensation to the States for loss of revenue arising on account of implementation of GST for a period of 5 years. On the very same transaction there cannot be two levies, one under Central GST Act and another under impugned legislation as it would amount to double taxation as levied on the same taxable event and same subject. The writ petitioner has to pay clean energy cess as well as compensation cess which amounts to double taxation. The petitioner may be permitted to set off the cess of ₹ 7.68 crores which was already paid on the stock lying with the petitioner on 30.06.2017. The Revenue submitted the following before the Supreme Court- Cess is nothing but a special kind of tax. If the legislature is competent to levy the main tax, i.e. GST under Article 246A of the C

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ues- Whether the Compensation to States Act, 2017 is beyond the legislative competence of Parliament? Whether Compensation to States Act, 2017 violates the Constitution (One Hundred and First Amendment) Act, 2016 and is against the objective of Constitution (One Hundred and First Amendment) Act, 2016? Whether the Compensation to States Act, 2017 is a colorable legislation? Whether levy of Compensation to States Cess and GST on the same taxing event is permissible in law? Whether on the basis of Clean Energy Cess paid by the petitioner till 30th June, 2017, the petitioner is entitled for set off in payment of Compensation to States Cess? First issue In respect of the first issue the Supreme Court analyzed the provisions of Constitution in regard to levy of tax and the introduction of Constitution amendment Act and the objects for the introduction of GST. One of the objects is to provide compensation to the States for loss of revenue arising on account of implementation of the Goods and

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Parliament. No contention has been raised before the Supreme Court that the subject matter of legislation was within the competence of State Legislature, and that the Parliament had no competence to legislate. The Supreme Court did not find do not find any lack of legislative competence in the Parliament. The Supreme Court held that- after Constitution (One Hundred and First Amendment) Act, 2016, as per Article 270, Parliament can levy cess for a specific purpose under a law made by it; Article 270, thus, specifically empowers Parliament to levy any cess by law; section 18 of the Constitution (One Hundred and First Amendment) Act, 2016 expressly empowers Parliament shall, by law on the recommendation of the Goods and Services Tax Council, provide for compensation to the states for loss of revenue arising on account of implementation of the goods and services tax…. The Supreme Court did not find any merit in the submission of the learned counsel for the petitioner that Parliament

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ral entry rather it specifically relates to goods and services tax. When express power is there to make law regarding goods and services tax, the Supreme Court failed to comprehend that how such power shall not include power to levy cess on goods and services tax. Constitution (One Hundred and First Amendment) Act, 2016 was passed to subsume various taxes, surcharges and cesses into one tax but the constitutional provision does not indicate that henceforth no surcharge or cess shall be levied. The Supreme Court held that power of Parliament to make law providing for compensation to the States for loss of revenue was expressly included by constitutional provision. The Preamble of Compensation to States Act, 2017 expressly mentions the Act to provide for compensation to the States for the loss of revenue arising on account of implementation of the goods and services Tax in pursuance of the provisions of the Constitution (One Hundred and First Amendment) Act, 2016. Thus, the Compensation

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nd services tax being already imposed by three enactments of 2017 as noticed above imposition of States Compensation Cess is levied on the same taxing event and has overlapping effect which is not permissible. The Supreme Court held that it is well settled that two taxes/imposts which are separate and distinct imposts and on two different aspects of a transaction are permissible as in law there is no overlapping . There might be overlapping but the overlapping must be in law. The fact that there is an overlapping does not detract from the distinctiveness of the aspects. Therefore, if the taxes are separate and distinct imposts and levied on the different aspects, then there is no overlapping in law. Goods and Services Tax imposed under the 2017 Acts and levy of cess on such intrastate supply of goods and services or both as provided under Section 9 of the CGST Act and such supply of goods and services or both as part of Section 5 of IGST Act is, thus, two separate imposts in law and ar

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Customs – 37/2018 – Dated:- 9-10-2018 – Circular No. 37/2018-Customs F. No. 450/119/2017-Cus IV Government of India Ministry of Finance Department of Revenue (Central Board of Indirect Taxes & Customs) Room No. 229 A, North Block New Delhi, dated the 9th October 2018 To All Principal Chief Commissioner/Chief Commissioner of Customs/ Customs & Central Tax / Customs (Preventive) All Principal Commissioner/Commissioner of Customs/ Customs & Central Tax / Customs (Preventive) All Director Generals under CBIC. Sub: Cases where IGST refunds have not been granted due to claiming higher rate of drawback OR where higher rate and lower rate were identical – reg. Sir/Madam, Numerous representations have been received from exporters /expor

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mmodity or product if such commodity or product is – ..…. (d) exported claiming refund of the integrated goods and services tax paid on such exports '. 2.2 Notes and Condition (12A) of Notfn.No.131/2016-Cus(NT) dated 31.10.2016 (as amended by Notfn.No.59/2017-Cus(NT) dated 29.6.2017 and 73/2017-Cus(NT) dated 26.7.2017) prescribed that 'The rates and caps of drawback specified in columns (4) and (5) of the said Schedule shall be applicable to export of a commodity or product if the exporter satisfies the following conditions, namely :- ……. (ii) If the goods are exported on payment of integrated goods and services tax, the exporter shall declare that no refund of integrated goods and services tax paid on export pr

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orts made from 1.7.2017 onwards. 2.5 By declaring drawback serial number suffixed with A or C and by making above stated declarations, the exporters consciously relinquished their IGST/ITC claims. 3. It has been noted that exporters had availed the option to take drawback at higher rate in place of IGST refund out of their own volition. Considering the fact that exporters have made aforesaid declaration while claiming the higher rate of drawback, it has been decided that it would not be justified allowing exporters to avail IGST refund after initially claiming the benefit of higher drawback. There is no justification for re-opening the issue at this stage. 4. Field formations may, therefore, take necessary steps to bring these changes to th

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