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In Re: M/s. C.M. Enviro Systems Private Limited
GST
2018 (12) TMI 477 – AUTHORITY FOR ADVANCE RULINGS, KARNATAKA – TMI
AUTHORITY FOR ADVANCE RULINGS, KARNATAKA – AAR
Dated:- 28-11-2018
AAR No. KAR ADRG 31/2018
GST
SRI. HARISH DHARNIA, AND DR. RAVI PRASAD M.P. MEMBER
Represented by Sri. Praveen Crasta, Director
ORDER UNDER SUB-SECTION (4) OF SECTION 98 OF CENTRAL GOODS AND SERVICE TAX ACT, 2017 AND UNDER SUB-SECTION (4) OF SECTION 98 OF KARNATAKA GOODS AND SERVICES TAX ACT, 2017
M/s. C.M. Enviro Systems Private Limited, # B-193 & 194, Peenya II Stage, V Main Road, Bengaluru- 560 058 (herein after referred to as Applicant) having GSTIN number 29AAACC5910C1Z3, have filed an application, on 16.05.2018, for advance ruli

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equipments used by DRDO's and other Defence Establishments, Automotive, Electrical & Electronic Industries (Private & Public Enterprises) and hence the use of these products is scientific & Technical in nature.
3. In view of the above, the Applicant has sought for Advance Ruling on the question that “Can our product be classified as Scientific & Technical Instruments, Equipments under a relevant Chapter Heading”. But the Applicant requested to permit them to withdraw the application filed for advance ruling vide their e-mail letter dated 22.11.2018, quoting the reason that their claim has no merit.
4. In view of the foregoing, we pass the following
RULING
The application filed by the Applicant for advance ruling is dismissed as withdra

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In Re: M/s. Nforce Infrastructure India Pvt. Ltd
GST
2018 (12) TMI 534 – AUTHORITY FOR ADVANCE RULINGS, KARNATAKA – 2019 (20) G. S. T. L. 184 (A. A. R. – GST)
AUTHORITY FOR ADVANCE RULINGS, KARNATAKA – AAR
Dated:- 28-11-2018
AAR No. KAR ADRG 30/2018
GST
SRI. HARISH DHARNIA, AND DR. RAVI PRASAD M.P. MEMBER
Represented by Sri. Rudolph M C Rodrigues, Chartered Accountant
ORDER UNDER SUB-SECTION (4) OF SECTION 98 OF CENTRAL GOODS AND SERVICE TAX ACT, 2017 AND UNDER SUB-SECTION (4) OF SECTION 98 OF KARNATAKA GOODS AND SERVICES TAX ACT, 2017
M/s. Nforce Infrastructure India Pvt. Ltd., Victoria, Near Valencia Church, Kankanady, Dakshina Kannada, Mangalore – 575 002, Karnataka (herein after referred to as Applicant) having GSTIN number 29AADCN3089J1Z0, have filed an application, on 17.03.2018, for advance ruling under Section 97 of CGST Act,2017, KGST Act, 2017 & IGST Act, 2017 read with rule 104 of CGST Rules 2017 & KGST Rules 2017, in form GST ARA-01, discharging the

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the aggregate value of the building constructed and handed over to the land owner and the underlying value of the land. Therefore the applicant filed this instant application seeking advance ruling on the following issues
1. Whether the applicant is liable to pay GST on the value of building constructed and handed over to the land owner in terms of the Joint Development Agreement ?
2. If there is liability to pay GST on what value is the GST to be paid since there is no monetary consideration involved?
3. Is the applicant liable to pay service tax up to 30.06.2017 and GST thereafter?
PERSONAL HEARING: / PROCEEDINGS HELD ON 03.04.2018.
4. The Applicant submitted power of attorney, issued by Sri, Ivan Mark Sequeira, Managing Director, M/S Nforce Infrastructure India Pvt. Ltd., authorizing Sri. Rudolpoh M C Rodrigues, Chartered Accountant to represent the applicant before the Authority for Advance Ruling in connection with the instant application for Advance Ruling. The said auth

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is liable to pay GST on the value of building constructed and handed over to the land owner in terms of the Joint Development Agreement ?
2. If there is liability to pay GST on what value is the GST to be paid since there is no monetary consideration involved?
3. Is the applicant liable to pay service tax up to 30.06.2017 and GST thereafter?
7. Notification No.4/2018-Central Tax (Rate) dated 25.01.2018, notifies the following classes of registered persons, namely
a) Registered persons who supply development rights to a developers builder, construction company or any other registered person against consideration, wholly or partly, in the form of construction service of complex, building or civil structure; and
b) Registered persons who supply construction service of complex, building or civil structure to supplier of development rights against consideration, wholly or partly, in the form of transfer of development rights,
as the registered persons in whose case the liability

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e or Union territory in which he is so liable within thirty days from the date on which he comes liable to registration, in such manner and subject to such conditions as may be prescribed;”
Section 22 of the CGST Act 2017 tells about the persons liable for registration and stipulates that Every supplier, who makes a taxable supply of goods or services or both, shall be liable to be registered, if his aggregate turnover crosses the threshold limit prescribed in the Act.
9. In the instant case the applicant, a registered person, is supplying the construction service of building / civil structure to supplier of the development rights (the land owner) against consideration in the form of transfer of development rights. Notification No.4/2018-Central Tax (Rate) dated 25.01.2018, at para (b), stipulates that the supplier of construction service, to the supplier of development rights, is liable to pay GST for the service provided to the land owner in terms of the Joint Development Agreement

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d or undivided share of land, as the case may be.
11. The third question of the applicant relates to their liability to pay service tax up to 30.06.2017. In this regard we draw reference to Section 142 (11) of the CGST/ KGST Act 2017, which is appended below :
(11) (a) notwithstanding anything contained in section 12 no tax shall be payable on goods under this Act to the extent the tax was leviable on the said goods under the Value Added Tax Act of the State;
(b) notwithstanding anything contained in Section 13, no tax shall be payable on services under this Act to the extent the tax was leviable on the said services under Chapter V of the Finance Act, 1994;
(c) where tax was paid on any supply both under the Value Added Tax Act and under Chapter V of the Finance Act, 1994, tax shall be leviable under this Act and the taxable person shall be entitled to take credit of value added tax or service tax paid under the existing law to the extent of supplies made after the appointed da

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In Re: Patrick Bernardinz D’Sa
GST
2018 (12) TMI 535 – AUTHORITY FOR ADVANCE RULINGS, KARNATAKA – 2019 (20) G. S. T. L. 181 (A. A. R. – GST)
AUTHORITY FOR ADVANCE RULINGS, KARNATAKA – AAR
Dated:- 28-11-2018
AAR No. KAR 29/2018
GST
SRI. HARISH DHARNIA, AND DR. RAVI PRASAD M.P. MEMBER
Represented by Sri. Patrick Bernardinz D'Sa
ORDER UNDER SUB-SECTION (4) OF SECTION 98 OF CENTRAL GOODS AND SERVICE TAX ACT, 2017 AND UNDER SUB-SECTION (4) OF SECTION 98 OF KARNATAKA GOODS AND SERVICES TAX ACT, 2017
Sri. Patrick Bernardinz D'Sa, # 17-7-477 “Pauline”, Miller Road, Valencia, Kadak, Mangalore – 575 002, Karnataka (herein after referred to as Applicant) having temporary GSTIN number 291800000227ARM, has filed an application, on 23.02.2018, for advance ruling under section 97 of CGST Act,2017, KGST Act, 2017 & IGST Act, 2017 read with rule 104 of CGST Rules 2017 & KGST Rules 2017, in form GST ARA-01, discharging the fee of Rs. 5,000-00 each under the CGST Act and the KG

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ement with a Developer to develop his land. He had contributed only his land and in return gets his share of 50% of the total 12 flats constructed and also 50% share out of 4000 sq. ft. of commercial construction. The Joint Development Agreement was signed by him in January 2016 and construction is reported to be completed in January 2018 and hence filed the instant application.
FINDINGS & DISCUSSION:
5. We have considered the submissions made by the Applicant in their application for advance ruling as well as the submissions made by Sri P B D'Sa during the personal hearing. We also considered the issue involved on which advance ruling is sought by the applicant, relevant facts of the issue involved and the contents of the Joint Development Agreement.
6. The Applicant, filed this application dated 23.02.2018 for advance ruling, seeking clarification as to “Whether the applicant being the land owner is liable to pay GST on premises allotted him, which he intends to distribute among h

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t Agreement was signed by him in January 2016 and the construction is stated to be completed in January 2018.
10. In the Context of the question raised by the applicant, it is pertinent to examine and discuss Notification No.4/2018-Central Tax (Rate) dated 25.01.2018, which notifies the following classes of registered persons, namely : –
a) Registered persons who supply development rights to a developer, builder, construction company or any other registered person against consideration, wholly or partly, in the form of construction service of complex, building or civil structure; and
b) Registered persons who supply construction service of complex, building or civil structure to supplier of development rights against consideration, wholly or partly, in the form of transfer of development rights,
as the registered persons in whose case the liability to pay central tax on supply of the Said services, on the consideration received in the form of construction service referred to in cla

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r in respect of his land, is liable to registration and payment of tax.
12. Section 2(94) of CGST Act' 2017 defines “Registered Person” as a person who is registered under Section 25 but does not include a person having a Unique Identity Number. Section 25 of the CGST Act' 2017 prescribes the procedure for registration and stipulates that “Every person who is liable to be registered under Section 22 or Section 24 of the CGST Act 2017 shall apply for registration in every such state or Union territory in which he is so liable within thirty days from the date on which he comes liable to registration, in such manner and subject to such conditions as may be prescribed;”
Section 22 of the CGST Act 2017 tells about the persons liable for registration and stipulates that Every supplier, who makes a taxable supply of goods or services or both, shall be liable to be registered, if his aggregate turnover crosses the threshold limit prescribed in the Act.
The applicant has not furnished any in

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A1 Cuisines Private Limited Versus Union of India, And State of Maharashtra,
GST
2018 (12) TMI 1278 – BOMBAY HIGH COURT – 2019 (22) G. S. T. L. 326 (Bom.)
BOMBAY HIGH COURT – HC
Dated:- 28-11-2018
Writ Petition No. 8034 Of 2018
GST
P. N. Deshmukh And Mrs. Swapna Joshi, JJ.
Mr. S. Kantawala, Advocate with Mr. A.M.Sudame, Advocate for Petitioner.
Mr. S.A.Chaudhari, Advocate  Mr. A.D.Sonak, A.G.P. for Respondent.  
ORAL JUDGMENT  
P. N. Deshmukh,  
1. Present petition is filed by the petitioner seeking issuance of Writ of Mandamus directing the respondents to exempt the petitioner from charging applicable taxes under the GST Legislations on sale of cosmetic products, perfumes etc. to the International passengers and claim refund of any input tax paid on input supplies and input services from the retail shop which the petitioner intends to set up at the Domestic Security Hold Area at Dr.Babasaheb Ambedkar International Airport (hereinafter re

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after purchasing these products from the shop, will be able to depart from India after taking connecting International flight from the transit International Airport. It is further submitted that a duty free operator operating in India imports goods like liquor, tobacco products, souvenirs, eyewear, watches, fashion, chocolates, perfumes etc. by filing import general manifest and Bill of Entry for warehousing with the Customs department without payment of import duty on the first importation subject to certain conditions. The Bill of Entry clearly indicates the duty free operator as an “importer”. The imported goods are warehoused at a bonded warehouse. Further the Bill of Entry also discloses that the goods imported are for “sale only for Duty free shop/export.”
Similarly, it is also submitted that the duty free operator also takes on rent a private bonded warehouse located near the Airport as well as certain shops called 'dutyfree shops' at the arrival and departure terminals

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69) or for removal to another warehouse or otherwise provided in this Act. The petitioner submits that the goods so warehoused are then brought to the dutyfree shop without payment of duty under escort of the bond Officer. The goods are then sold at the duty free shops at arrival and departure terminals. The subsequent sales at duty free shops are under general supervision and control of the Customs Officer and that the goods are sold at the duty free shops to the International passengers at the arrival and departure terminals by issuing a sales invoice which disclose inter alia the name of the passenger, flight details, passport number, etc. and is available for inspection by the Customs Officer. These details are also entered in the computer of the operators and are available for inspection by the Customs Authority.
4. The petitioner submits that with effect from July, 2017, the respondent no.1 promulgated and notified CGST, IGST and various State Governments promulgated SGST. That

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proposed to be operated by petitioner and had sought further direction that petitioner shall be eligible to claim refund of any taxes paid on any supplies and input services from his shop in the event his tender for having such shop at Nagpur Airport is granted to him.
6. In the context of above facts, petitioner relied on the case of M/s. Hotel Ashoka (Indian Tourism Development Corporation Limited) vs. Assistant Commissioner of Commercial Taxes and Another (Civil Appeal No.2560 of 2010) reported in 2012 (276) ELT 433 (SC) and on the order of Excise and Service Tax Appellate Tribunal West Zonal Bench, Mumbai in the matter of Commissioner, Service TaxVII vs. Flemingo Duty Free Shop Pvt. Ltd. (Appeal No.8723441/ 2016), dated 28.09.2017, wherein law laid down in the case of Hotel Ashoka (supra) is relied and Central Government's order dt.31.8.2018 bearing No.634/2018CUS( WZ)/ASRA/MUMBAI passed under Section 129DD of the Customs Act, 1962 in the case of Aarish Altaf Tinwala.
7. To

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om India after embarking the International flight from the transit International Airport.
8. We have carefully considered the submissions of the petitioner in the instant petition and have perused the provisions of Article 286 of the Constitution of India, GST laws, Customs Act, 1962 and Finance Act, 1994. We have considered the Judgment of the Hon'ble Supreme Court in the case of Hotel Ashoka (supra). We have also perused the two Orders of the CESTAT and of the Central Government following the case of Hotel Ashoka, which are relied upon by the petitioner.
9. The Government of India in case of Aarish Altaf Tinwala by its order dt.31.8.2018 dismissed the revision of applicant filed by International passenger on relying the case of M/s. Hotel Ashoka (cited supra) observing that :
“8. The applicant has vehemently pleaded that once he has completed the immigration formalities, he is said to have entered Indian Territory. Thereafter, the goods purchased from the duty free shop situa

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waters of India. ”
11. The Central Government however observes that the duty free shops though being physically located in Indian Territory, are specifically treated as being located outside the Customs Territory of India. duty free shops are located in the Customs Area defined under Section 2(11) and it includes any area where the imported goods or export goods are kept before clearance by Customs authorities. Goods sold by duty free shops are not duty paid goods and such goods are deposited in a customs bonded premises/ware houses, licensed under Section 58A of the Customs Act, 1962 without payment of duty. Section 71 clearly mandates that no goods shall be taken out of a warehouse except clearance for home consumption, exportation or removal to another warehouse or as otherwise provided by this Act. It is thus clear that such goods need to suffer Customs duty on being exported by duty free shops and imported by passenger in terms of Section 77 of the Customs Act, 1962. The conten

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id that the said goods had crossed the customs frontiers.
The goods are not cleared from the customs till they are brought in India by crossing the customs frontiers. When the goods are lying in the bonded warehouses, they are deemed to have been kept outside the customs frontiers of the country and as stated by the learned senior counsel appearing for the appellant, the appellant was selling the goods from the duty free shops owned by it at Bengaluru International Airport before the said goods had crossed the customs frontiers. ”
“30. They again submitted that 'in the course of import' means 'the transaction ought to have taken place beyond the territories of India and not within the geographical territory of India.' We do not agree with the said submission. When any transaction takes place outside the customs frontiers of India, the transaction would be said to have taken place outside India. Though the transaction might take place within India but technically loo

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tiers of India. Although, the applicant bought goods from duty free shop at CSI Airport Mumbai, the same are deemed to be imported from across the Customs Frontiers of India and customs duty is payable on such goods. Since the applicant crossed the green channel without declarations and without payment of customs duty, the department has rightly proceeded against the Applicant.
11. The Central Government has thus applied the ratio laid down by Hon'ble Supreme Court in Hotel Ashoka (supra) and correctly held that the transactions effected at the duty free shops at the arrival or departure of the International Airports in India located after the passenger clears immigration might have taken place within the geographic territory of India, but for the purposes of levy of Customs Duties or any other taxes, the area of duty free shops shall be deemed to be the area beyond the customs frontiers of India and the transaction would be said to have taken place outside India.
12. The aforesa

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chase/supplies of goods or services to or from duty free shop situated after the passenger crosses the immigration counter at arrival or departure hall of International Airport Terminals; however, they would have no application to shops located at a domestic Airport or Domestic Security Hold Area, which are before even the immigration clearance by a passenger, where the transaction cannot be said to have taken place in any area beyond the customs frontiers of India or outside India. Even otherwise, a passenger travelling on a domestic flight from Nagpur may or may not travel abroad, and the Customs Authorities would not be able to have effective check and control to verify whether the goods purchased from Domestic Airport at Nagpur are actually taken abroad by the passenger.
14. We are thus unable to agree with the petitioner and find no merit in this petition. No case is made out even on prima facie basis to issue any directions or any notice in that regard. With the above observatio

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In Re: Dr. Amin Controllers Private Limited
GST
2019 (2) TMI 186 – AUTHORITY FOR ADVANCE RULING, TAMILNADU – 2019 (21) G. S. T. L. 178 (A. A. R. – GST)
AUTHORITY FOR ADVANCE RULING, TAMILNADU – AAR
Dated:- 28-11-2018
Order No. 22/AAR/2018
GST
MS. MANASA GANGOTRI KATA, IRS AND THIRU S. VIJAYAKUMAR, M.SC., MEMBER
Note: Any appeal against the advance ruling order shall be filed before the Tamil Nadu State Appellate Authority for Advance Ruling, Chennai under Subsection (1) of Section 100 of CGST ACT/TNGST Act 2017 within 30 days from the date on which the ruling sought to be appealed against is communicated.
At the outset, we would like to make it clear that the provisions of both the Central Goods and Service Tax Act and the Tamil Nadu Goods and Service Tax Act are the same except for certain provisions. Therefore, unless a mention is specifically made to such dissimilar provisions, a reference to the Central Goods and Service Tax Act would also mean a reference t

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levy of 18% GST can be taken credit of SGST by issuing Credit Note.
The Applicant has submitted the Advance Ruling in Form GST ARA – 01 and had enclosed challan for payment of Fees of Rs. 5,000/- each under sub-rule (1) of Rule 104 of CGST Rules 2017 and SGST Rules 2017.
2.1 The Applicant has stated that they are a Third Party Inspection Services Agency empanelled with CMWSB and TWAD (Clients). They render Third Party Inspection Services as per the work orders issued to them by their Clients from time to time. The Applicant has stated that, when Goods/ Materials are ordered /procured by TWAD/CMWSSB from various contractors in connection with a function of Municipality entrusted to them under Article 243W of the Constitution. The contractor places the order for purchase of materials from Manufacturers/Suppliers. Before the supply / delivery of materials, the Applicant has to conduct Third Party inspection of materials and submit a report to TWAD/CMWSSB. On the material goods being re

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pplicant) was providing Third Party Inspection Services to M/s. CMWSSB and M/s. TWAD and when they raised Invoices along with Service Tax to the M/s. CMWSSB and M/s. TWAD, the clients denied to pay Service Tax dated 20/06/2012- “Services provided to the Government, a local authority or a government authority by way of construction, errection, commissioning, installation, completion, fitting out, repair, maintenance, renovation, or alteration of-“. The Applicant took the appeal before the Assessing Officer, Mumbai where an order was issued to them to pay the Service Tax stating that their services of Third Party Inspection are not covered under SI.No. 12(e) of Notification No. 25/2012 of Services Tax dated 20/06/2012.
In the light of the above, the applicant has now sought Advance Ruling to clarify, Whether the services rendered by them to M/s. CMWSSB and M/s. TWAD are exempted under SI. No. 3 of the Notification No. 12/2017-CT(Rate) dated 28th June, 2017.
3. The Applicant was heard i

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that the Applicant was empanelled for conducting Third party Inspection for procurements of Pipes, Open Well Submersible Pump sets, Panel Boards, Transformer, Water Meters and other equipment supplied by the L&T Ltd., Chennai to M/s. TWAD under CWSIS to Vellore Corporation and various Municipalities and Towns of Vellore district required for implementing Water Supply Schemes and Sewerage Schemes to ensure quality assurance. The Applicant will also submit a final report on the quality of the equipment based on their inspections. The Applicant will be paid as a percentage of the value of materials inspected at various slabs. The invoice indicates the charges towards “Professional Fees” of various equipment indicating dates and places of Inspection, Description of equipment/materials.
4.2 On verification of the Agreement , Work Orders with CMWSSB, it is seen that the Applicant was selected was empanelled for conducting Third party Inspection for procurements of Pipes, Pump sets, Electro

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ointing Directors of the CWSSB Board to carry out the functions of supplying water for Domestic, Industrial and Commercial purposes as well as Sanitation Conservancy by way of disposal which is entrusted to a Municipality under Article 243W of the Constitution. It is seen that the Minister and Secretary in charge of “Water Supply” are on the Board and on setting up of CMWSSB, the Local Authority was required to transfer all assets, liabilities, legal proceedings and properties relating to water and sewerage works to M/s. CMWSSB. It is seen from the Annual report that M/s. CMWSSB gets income from sale of water and charges on sewerage water by way of Water Tax, and Sewerage Tax, grants from the government etc.
4.4 The Applicant has also submitted TWAD Act, on verification of which it is seen that it is a Board constituted by an act of Tamil Nadu State Legislature called Tamil Nadu Water Supply and Drainage Board Act, 1970 with 100% contribution by way of Government and controlled by Gov

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t has stated that M/s. CMWSSB and M/s. TWAD are of the view that Third Party Inspection Service are within the ambit of “Pure Services”, as it is an activity in relation to any function entrusted to a Municipality under Article 243W of the Constitution and will not reimbursed the GST component of the invoice. The issue to be decided is Whether the Applicant is rendering “Pure Services” and Whether M/s. CMWSSB and M/s. TWAD are 'Governmental Authority' as defined in the Notification No. 12/2017 Central Tax (Rate) dated 28th. June 2017.
6.1 The relevant extract of Sl.No. 3 of Notification No. 12/2017-Central Tax (Rate) dated 28th June 2017 and the relevant definitions are extracted below for ease of reference:
3
Chapter 99
Pure services (excluding works contract service or other composite supplies involving supply of any goods) provided to the Central Government, State Government or Union territory or local authority or a Governmental authority by way of any activity in rela

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ii) in paragraph 2, for clause (zf),the following shall be substituted, namely: –
“(zf) “Governmental Authority” means an authority or a Board or any other body, -(i) set up by an Act of Parliament or a State Legislature; or (ii) established by any Government, with 90 percent or more participation by way of equity or control, to carry out any function entrusted to a Municipality under article 243 W of the Constitution or to a Panchayat under article 243 G of the Constitution.”
From the above, it is evident that if any “Pure Services” are provided to a Governmental Authority by way of any activity in relation to any function entrusted to a Municipality under Article 243 W or a Panchayat under Article 243 G (from 13.102017) of the Constitution and that 'Governmental Authority' is an Authority or a Board set up by an Act of Parliament or a State legislature or established by the Government with 90 percent or more participation by way of equity or control to carry out any functio

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Directors of the TWAD Board entrusted with the development of Water Supply and Sewerage facilities in Municipalities and Panchayats in the State of Tamil Nadu, except Chennai Metropolitan Development. The Twelfth Schedule or Article 243W of the Constitution list, the functions of the Municipality at SI No 5 as “Water Supply for Domestic, Industrial and Commercial purposes “and at SI No 6 as “Public Health, Sanitation Conservancy and Solid Waste Management”. The Eleventh Schedule or Article 243G of the Constitution list the functions of the Municipality at SI. No. 5 as “Water Supply for Domestic, Industrial and Commercial purposes “and at SI No 6 as “Public Health, Sanitation Conservancy and Solid Waste Management”. Thus, it is clear that in the Constitution list, the functions of the Panchayat at SI. No. 11 as “Drinking Water” and at SI. No. 23 as. “Health and Sanitation”. Thus, it is clear that in respect of services received in relation to functions pertaining to Municipality, M/s.

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eir inspections. The Applicant will be paid as a percentage of the value of materials inspected at various slabs. Therefore, the Applicant is rendering pure services to TWAD in respect of its functions with respect to Municipalities.
In the other contract with CMWSSB, it is seen that the Applicant was selected was empaneled for conducting Third party Inspection for procurements of Pipes, Pump sets, Electronic Equipment, Chemicals of works involved in extension of Desalination , iron conveying water main from Medavakkam Junction to Alandur Water Distillation Station. The Applicant will also submit a final report on the quality of the equipment based on their inspections. The Applicant will be paid as a percentage of the value of materials inspected. Therefore, the Applicant is rendering “Pure Services” to M/s. CMWSSB in respect of its functions with respect to Municipalities.
6.4 In view of the foregoing, in the two agreements furnished by the Applicant, the Applicant is suppling &#39

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In Re: Tamil Nadu Water Investment Company Limited
GST
2019 (2) TMI 187 – AUTHORITY FOR ADVANCE RULING, TAMILNADU – 2019 (21) G. S. T. L. 342 (A. A. R. – GST)
AUTHORITY FOR ADVANCE RULING, TAMILNADU – AAR
Dated:- 28-11-2018
Order No. 21/AAR/2018
GST
MS. MANASA GANGOTRI KATA, IRS AND THIRU S. VIJAYAKUMAR, M.SC., MEMBER
Note : Any Appeal against the Advance Ruling order shall be filed before the Tamil Nadu State Appellate Authority for Advance Ruling, Chennai under Sub-section (1) of Section 100 of CGST ACT/TNGST Act 2017 within 30 days from the date on which the ruling sought to be appealed against is communicated.
At the outset, we would like to make it clear that the provisions of both the Central Goods and Service Tax Act and the Tamil Nadu Goods and Service Tax Act are the same except for certain provisions. Therefore, unless a mention is specifically made to such dissimilar provisions, a reference to the Central Goods and Service Tax Act would also mean a re

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2.1 The Applicant has stated that they have entered into agreement with CMWSSB for
* Project Management Consultancy for the work Construction Management and Supervision including off-site inspection for the proposed design, Build and Commissioning of 45 MLD capacity Tertiary Treatment Reverse Osmosis(TTRO) Plant at Kodungaiyur &Koyambedu, Chennai City
* Consultancy Services for preparation of Detailed Project Report for providing Smart Water Supply and Sewerage Services in T.Nagar, Chennai City, under Smart City Mission
2.2. The Applicant has stated that in the pre-GST regime and as per the Special Conditions of the agreement entered into by Applicant with CMWSSB, the Service Tax paid by the Applicant was reimbursed by CMWSSB up to Febraury '2017 and with the introduction of GST from 01.07.2017, the Applicant charged GST on the Invoices raised by it on CMWSSB. However, CMWSSB is of the view that Project Management Consultancy Services (PMC) rendered by the Applicant is exemp

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or Smart City Mission of T.Nagar Chennai with CMWSSB, which are ongoing for Consultancy Services for Design and Supervision, including Supply of Manpower for the same. They undertook to submit Invoices, Payment Advice and Certificate from CMWSSB on Ownership, so as to be eligible for exemption under SI.No.3 of Notification No. 12/2017 Central Tax (Rate) dated 28.06.2017, as it involved Governmental Authority involving Water Treatment Plant (Tertiary Treatment Reverse Osmosis (TTRO). The Applicant has furnished copy of Invoices raised on CMWSSB in respect of Project Management Consultancy Services (PMC) to the proposed Tertiary Treatment Reverse Osmosis (TTRO) plants at Koyambedu and Kodungaiyur and for Smart City Mission of T.Nagar Chennai; Letter dated 25th May 2018 from CMWSSB on ownership along with enclosures and Copy of Agreement entered into with CMWSSB for Project Management Consultancy Services of Chennai T.Nagar under Smart City Mission.
4.0 Submissions of the Applicant were

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n of equipment and materials required for construction and commissioning, be responsible for Environmental and social management and sign-off on the expenditure by the project executing authority. As per the contract, the Applicant will be paid for all staff costs, Sub-consultants costs, printing, communications, travel, accommodation and all other costs incurred in carrying out the services. The payment will be on actual cost of deployment of man-power who are specified in the contract. It is seen from the invoices already raised that the Applicant is being paid for “Consultancy Fee towards Project Management Consultancy (PMC) for setting up of 45MLD capacity Tertiary Treatment Reverse Osmosis (TTRO) Plant at Kodungaiyur and Koyambedu.
4.1 The Applicant has also entered into contract with CMWSSB for Consultancy Services for preparation of detailed project report for providing smart water supply and sewerage services in T Nagar under Smart City Mission. The project is to Design, Devel

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under Smart City Mission”.
4.2 The Applicant has also submitted a letter from Managing Director, CMWSSB to the Applicant stating that CMWSSB is a Governmental Authority as per Section 2(16) of IGST Act. It is a Board constituted by an Act of Tamil Nadu State Legislature called “Chennai Metropolitan Water Supply and Sewerage Act, 1978” with 100% contribution by way of Government ( by way of takeover of Assets and Liabilities from Chennai Municipal Corporation and Tamil Nadu Water Supply and Drainage Board) and controlled by the Government by way of appointing Directors of the CWSSB Board to carry out the functions of supplying water for Domestic, Industrial and Commercial purposes as well as Sanitation Conservancy by way of disposal, which is entrusted to a municipality under Article 243W of the Constitution. The related copies of the Act and Annual Report were enclosed which supports the statement made in the letter of CMWSSB. It is seen that the Minister and Secretary in charge of “W

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s”, as it is an activity in relation to any function entrusted to a Municipality under Article 243W of the Constitution and not reimbursed the GST component of the invoice. The issue to be decided is whether the Applicant is rendering Pure Services' and whether CMWSSB is a 'Governmental authority' as defined in the Notification No. 12/2017.
6.1 The relevant extract of SI.No. 3 of Notification No. 12/2017-Central Tax (Rate) dated 28th June 2017 and the relevant definitions are extracted below for ease of reference:
3
Chapter 99
Pure services (excluding works contract service or other composite supplies involving supply of any goods) provided to the Central Government, State Government or Union territory or local authority or a Governmental authority by way of any activity in relation to any function entrusted to a Panchayat under article 243G of the Constitution or in relation to any function entrusted to a Municipality under article 243W of the Constitution.
Nil
Nil

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by an Act of Parliament or a State Legislature; or (ii) established by any Government, with 90per cent, or more participation by way of equity or control, to carry out any function entrusted to a Municipality under article 243 W of the Constitution or to a Panchayat under article 243 G of the Constitution.”
From the above, it is evident that if any “Pure Services” are provided to a Governmental Authority by way of any activity in relation to any function entrusted to a municipality under Article 243 W of the Constitution and that 'Governmental Authority' is an Authority or a Board set up by an Act of Parliament or a State Legislature or established by the Government with 90 percent or more participation by way of equity or control to carry out any function entrusted to a municipality under article 243 W of the Constitution, then the same is exempted vide SI.No. 3 of the Notification No. 12/2017-Central Tax (Rate) referred above.
6.2 In the case at hand, from the documents fu

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2017-Central Tax (Rate) 28th June 2017.
6.3 On perusal of the agreements furnished by the Applicant, we find that the Applicant provides Project Management Consultancy Services, including Supervision of the Construction Works including Design, Testing Quality Assurance, carry out 3rd party inspection of equipment and materials required for construction and commissioning, be responsible for Environmental and social management and sign-off on the expenditure by the project Executing Authority, to CMWSSB for Construction Management and Supervision including off-site inspection for the proposed Design, Build, Commission of 45 MLD capacity Tertiary Treatment Reverse Osmosis (TTRO) Plant at Kodungaiyur and Koyambedu, for recycling and reusing of waste water for the uses other than drinking purposes to various industries. The Applicant will be paid for all staff costs, Sub-consultants costs, printing, communications, travel, accommodation and all other costs incurred in carrying out the serv

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ority” relating to water supply for industrial use and sanitation conservancy which are covered under Twelfth Schedule of Article 243 W of the Constitution. Therefore, the services rendered by the Applicant are exempted from CGST under SI.No. 3 of the Notification No. 12/2017-Central Tax (Rate) dated 28th June 2017 as amended and exempted from SGST under Sl.No. 3 of the G.O. (Ms) No. 73 dated 29.06.2017 No.II (2)/CTR/532(d-15)/2017 as amended.
7. In view of the foregoing, we rule as under:
RULING
The activity of the Applicant as per the three contracts entered into with Chennai Metro Water Supply and Sewerage Board i.e. for Project Management Consultancy (PMC) Services entered by Applicant with CMWSSB for construction management and supervision including off-site inspection for the proposed design, build, commission of 45 MLD capacity Tertiary Treatment Reverse Osmosis (TTRO) Plant at Kodungaiyur and Koyambedu and for Consultancy Services for preparation of detailed project report f

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In Re: Senthilkumar Thilagavathy [M/s. JVS Tex]
GST
2019 (2) TMI 188 – AUTHORITY FOR ADVANCE RULING, TAMILNADU – 2019 (21) G. S. T. L. 226 (A. A. R. – GST)
AUTHORITY FOR ADVANCE RULING, TAMILNADU – AAR
Dated:- 28-11-2018
Order No. 20/AAR/2018
GST
MS. MANASA GANGOTRI KATA, IRS AND THIRU S. VIJAYAKUMAR, M.SC., MEMBER
Note : Any Appeal against the Advance Ruling order shall be filed before the Tamil Nadu State Appellate Authority for Advance Ruling, Chennai under Sub-section (1) of Section 100 of CGST ACT/TNGST Act 2017 within 30 days from the date on which the ruling sought to be appealed against is communicated.
At the outset, we would like to make it clear that the provisions of both the Central Goods and Service Tax Act and the Tamil Nadu Goods and Service Tax Act are the same except for certain provisions. Therefore, unless a mention is specifically made to such dissimilar provisions, a reference to the Central Goods and Service Tax Act would also mean a refer

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hey manufacture Stick-Bags / Wedding Gift Bags / Packing Bags made of Non-woven Fabrics of Polypropylene / 100% Cotton (Grey Fabrics); Their bags are mainly purchased by the Show Rooms (Cars, Bikes, Vehicle Parts and Spectacles), Textile Shops, Silk Emporiums, Jewellery Shops, Retail Outlets of Commercial products etc. for the purpose of packing of their products to the ultimate customers.; They are bags of a kind used for the packing of goods commonly called as, 'Re-usable Shopping Bags, Drawstring Gift Bags, Garment Bags, etc.'; The major raw material for the manufacture of the said bags is Non-woven Fabrics falling under heading 5603/ 'grey fabrics/woven fabrics of 100% cotton falling under heading 5208 of first schedule to Customs Tariff Act 1975.; The said bags are manufactured through the processes of cutting, printing (either screen or off-set), sewing and handle fixing (either sticks or same material).
2.2 The Applicant has further stated that the classification of

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rs, whether or not padded).”
Accordingly, the said 'Bags made of Non-woven Fabrics of Polypropylene are rightly classifiable under Tariff item No. 6305 33 00, as 'Sacks and Bags, of a kind used for packing of goods, of man-made textile materials, of Polypropylene strip or the like and Bags made of cotton” are rightly classifiable under Tariff Item No.6305 20 00 as Sacks and Bags, of a kind used for packing of goods, of Cotton respectively. The above said classification under the Customs Tariff is aligned with the HSN Code and it appears both in Schedule I and Schedule II of Notification No.01/2017 Central Tax (Rate) dated 28.06.2017 as amended and G.O. Ms. 157 dated 14.11.2017 of the Government of Tamilnadu the rate of tax is levied based on the value of the product, i.e., @ 2.5% – for value not exceeding Rs. 1000 per piece and @ 6%- for sale value exceeding Rs. 1000 per piece. In the present case, the sale value of 'Bags made of Non-woven Fabrics of Polypropylene/woven fa

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records. The Classification of the Bags and the applicability of the Actual Rate / Heading is the issue to be discussed and clarified. From the various submissions of the Applicant, it is evident that the Applicant purchases Non-woven Fabric roll, convert into sheets by cutting and on printing according to requirements of customers (either screen or off-set), stitch into bags which are used in Show Rooms (Cars, Bikes, Vehicle Parts and Spectacles), Textile Shops, Silk Emporiums, Jewellery Shops, Retail Outlets of Commercial products etc. for the purpose of packing their products to the ultimate customers. They are bags of a kind used for the packing of goods commonly called as Re-usable Shopping Bags, Drawstring Gift Gags, Garment Bags. The Bags have handles made out of stick or same materials. The purchase Invoices indicate purchase of Non-woven Fabrics and plain Cotton cloth. It is seen in the Sale Invoices that the Applicant is variously describing them as “Non-woven Bags”, “Cloth

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10 10
Jute bagging for raw cotton
kg.
25%
–
6305 10 20
Jute corn (grains) sacks
kg.
25%
–
6305 10 30
Jute hessian bags
kI-
25%
–
6305 10 40
Jute sacking bags
kg.
25%
_
6305 10 50
Jute wool sacks
kg.
25%
–
6305 10 60
Plastic coated or paper cum polythene lined jute bags and sacks
kg.
25%
–
6305 10 70
Paper laminated hessian jute
kg.
25%
–
6305 10 😯
Jute soil savers
kg.
25%
–
6305 10 90
Other
kg.
25%
–
6305 20 00
– Of cotton
kg.
25%
–
 
– Of man-made textile materials :
 
 
 
6305 32 00
Flexible intermediate bulk containers
kg.
25%
–
6305 33 00
Other, of polyethylene or polypropylene strip or the like
kg-
25%
–
6305 39 00
Other
kg.
25%
–
6305 90 00
– Of other textile materials
kg.
25%
–
6306
TARPAULINE AWNINGS AND SUNBLINDS: TENTS
 
 
 
HSN explanatory Notes to chapter 6305 states:
This heading covers textile sacks and bags of a kind normally used for the packi

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Customers are put in these Bags and given to Customers to carry /take away from the shops. These bags are not used for packing, but for ease of carrying being in the nature of Shopping Bags.
Chapter Heading 4202:
4202
Trunks, suit-cases, vanity-cases, executive- cases, BRIEF-CASES, SCHOOL SATCHELS, SPECTACLE CASES, BINOCULAR CASES, CAMERA CASES, MUSICAL INSTRUMENT CASES, GUN CASES, HOLSTERS AND SIMILAR CONTAINERS; TRAVELLING-BAGS, INSULATED FOOD OR BEVERAGES BAGS, TOILET BAGS, RUCKSACKS, HANDBAGS, SHOPPING-BAGS, WALLETS, PURSES, MAP-CASES, CIGARETTE-CASES, TOBACCO-POUCHES, TOOL BAGS, SPORTS BAGS, BOTTLE-CASES, JEWELLERY BOXES, POWDER-BOXES, CUTLERY CASES AND SIMILAR CONTAINERS, OF LEATHER OR OF COMPOSITION LEATHER, OF SHEETING OF PLASTICS, OF TEXTILE MATERLALS, OF VULCANISED FIBRE OR OF PAPERBOARD, OR WHOLLY OR MAINLY COVERED WITH SUCH MATERLALS OR WITH PAPER
 
 
 
 
– Trunk's, suit-cases, vanity-cases, executive-cases, brief-cases, school satchels and s

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or shopping bags are covered in the Customs Tariff under CCTH 420222 depending on the material they are made up of. Shopping bags made of cotton are classified under CTH 42022220 and those made of non-woven fabrics are classifiable under CTH 42022210.
5.3 Having decided the classification, the next to be answered is the applicable rate of tax. Non-woven and cotton carry bags supplied by the Applicant were taxable to 9% CGST and 9% SGST as per SI no 126 and 127 of Schedule III of Notification No. 01/2017-CT (Rate) dated 28.06.2017 and G.O. (Ms) No. 62 dated 29.06.2017 No. II (2)/CTR/532(d-4)/2017 as amended respectively.
The relevant entries are found in Schedule III attracting 9% tax as given under:
124.
4202
School satchels and bags other than of leather or composition leather
125.
4202 12 10
Toilet cases
126.
4202 22 10
Hand bags and shopping bags, of artificial plastic material
127.
4202 22 20
Hand bags and shopping bags, of cotton
128.
4202 22 30
Hand bags and shop

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ng-bags, insulated food or beverages bags, toilet bags, rucksacks, handbags, shopping bags, wallets, purses, map-cases, cigarette-cases, tobacco- pouches, tool bags, sports bags, bottle-cases, jewellery boxes, powder-boxes, cutlery cases and similar containers, of leather, of sheeting of plastics, of textile materials, of vulcanised fibre or of paperboard, or wholly or mainly covered with such materials or with paper [other than handbags and shopping bags, of cotton or jute]” shall be substituted:
(xli) after S. No. 124 and the entries relating thereto, the following serial numbers and the entries shall be inserted, namely: –
“124A
4203
Articles of apparel and clothing accessories, of leather or of composition leather [other than gloves specially designed for use in sports]
124B
4205
Other articles of leather or of composition leather
124C
4206
Articles of gut (other than silk-worm gut), of goldbeater's skin, of bladders or of tendons”;
(xlii) S. No. 125, 126, 127, 128,

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In Re: Balu Ramamoorthy Sekar Proprietor of M/s Savani Screens
GST
2019 (2) TMI 189 – AUTHORITY FOR ADVANCE RULING, TAMILNADU – TMI
AUTHORITY FOR ADVANCE RULING, TAMILNADU – AAR
Dated:- 28-11-2018
Order No. 19/AAR/2018
GST
MS. MANASA GANGOTRI KATA, IRS AND THIRU S. VIJAYAKUMAR, M.SC., MEMBER
Note : Any Appeal against the Advance Ruling order shall be filed before the Tamil Nadu State Appellate Authority for Advance Ruling, Chennai under Sub-section (1) of Section 100 of CGST ACT/TNGST Act 2017 within 30 days from the date on which the ruling sought to be appealed against is communicated.
At the outset, we would like to make it clear that the provisions of both the Central Goods and Service Tax Act and the Tamil Nadu Goods and Service Tax Act are the same except for certain provisions. Therefore, unless a mention is specifically made to such dissimilar provisions, a reference to the Central Goods and Service Tax Act would also mean a reference to the same provisi

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ments. The Non-woven fabric rolls are first cut into sheets of needed size, then the sheets are printed according to requirements of Customers such as designs, shop name and address, and finally stitched to finish goods. The price of the bags ranges between minimum Rs. 5.50 per bag and maximum Rs. 20 per bag. The size of the Non-woven Bags varies from 8″x10″ (Minimum) and 21″x19″ (Maximum). These bags are wholly and exclusively supplied to Textile show rooms/Textile dealers, Jewelry shops and used for packing of their products.
2.2 In respect of manufacturing of Cotton bags, the Applicant have stated that the basic raw material is “Cotton Cloth” (mainly GADA Cloth) received in bundles of standard size of 100 meters. They are cut, printed and stitched according to the requirements of the customers. The size of the Cotton Cloth Bags varies from (Minimum) 12″x15″ to (Maximum) 16″x20″. These bags are wholly and exclusively supplied to Textile show rooms/Textile dealers, jewelry shops used

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bags while selling the textiles. They also furnished copies of purchase and sales invoices relating to Pre-GST and Post-GST regime for perusal.
4. Contentions of the Applicant was examined with connected samples and sale and purchase invoices submitted. It is seen from samples that the raw materials are non-woven and cotton fabric and the finished products made of these raw materials are bags with various logos, names, addresses of textile and jewelry shops printed on them. The bags have handles made of either same material or PVC or bamboo sticks. They are carry bags which are given to customers of these shops. The purchase invoices indicate purchase of non woven fabrics and plain cotton cloth. It is seen in the sale invoices that the applicant is variously describing them as “Bags”, “Shopping Bags” etc. of various sizes.
5. The Classification of the bags and the applicability of the Actual Rate / Heading is the issue to be discussed and clarified. From the various submissions of t

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First Schedule shall be applied for the interpretation and classification of goods. Accordingly, the competing headings are examined as under:
5.2 The applicant's contention is that the products are to be classified under 6305.
Chapter 6305:
6305
Sacks and bags, of a kind used for the PACKING OF GOODS
 
 
 
6305 10
– Of jute or of other textile bast fibres of heading 5303 :
 
 
 
6305 10 10
Jute bagging for raw cotton
kg.
25%
–
6305 10 20
Jute corn (grains) sacks
kg.
25%
–
6305 10 30
Jute hessian bags
kI-
25%
–
6305 10 40
Jute sacking bags
kg.
25%
_
6305 10 50
Jute wool sacks
kg.
25%
–
6305 10 60
Plastic coated or paper cum polythene lined jute bags and sacks
kg.
25%
–
6305 10 70
Paper laminated hessian jute
kg.
25%
–
6305 10 😯
Jute soil savers
kg.
25%
–
6305 10 90
Other
kg.
25%
–
6305 20 00
– Of cotton
kg.
25%
–
 
– Of man-made textile materials :
 
 
 

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materials are used for packing the goods which are then put up for sale, transport or storage. That is such goods because of their very nature, being loose, flowing or in bulk etc, cannot be sold without packing by such bags.
However, in the instant case, the Applicant has stated that the goods in question are carry bags. The bags have handles for carrying. Textiles or Jewellery etc. after they are purchased by the customers, are put in these bags and given to customers, to carry /take away from the shops. These bags are not used for packing but for ease of carrying being in the nature of shopping bags.
Chapter Heading 4202:
4202
Trunks, suit-cases, vanity-cases, executive- cases, BRIEF-CASES, SCHOOL SATCHELS, SPECTACLE CASES, BINOCULAR CASES, CAMERA CASES, MUSICAL INSTRUMENT CASES, GUN CASES, HOLSTERS AND SIMILAR CONTAINERS; TRAVELLING-BAGS, INSULATED FOOD OR BEVERAGES BAGS, TOILET BAGS, RUCKSACKS, HANDBAGS, SHOPPING-BAGS, WALLETS, PURSES, MAP-CASES, CIGARETTE-CASES, TOBACCO-POUC

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02 22 20
Hand-bags and shopping bags, of cotton
u
10%
 
4202 22 30
Hand-bags and shopping bags, of Jute
u
10%
 
4202 22 40
Vanity-bags
u
10%
 
4202 22 90
Other
u
10%
 
4202 29
Other :
 
 
 
4202 29 10
Hand bags of other materials excluding wicker-work or basket work
u
10%
 
4202 29 90
Other
u
10%
 
From the above, it is seen carry bags or shopping bags are covered in the Customs Tariff under CCTH 420222 depending on the material they are made up of. Shopping bags made of cotton are classified under CTH 42022220 and those made of non-woven fabrics are classifiable under CTH 42022210.
5.3 Having decided the classification, the next to be answered is the applicable rate of tax.
Non-woven and cotton carry bags supplied by the Applicant were taxable to 9% CGST and 9% SGST as per SI no 126 and 127 of Schedule III of Notification No. 01/2017-CT (Rate) dated 28.06.2017 and G.O. (Ms) No. 62 dated 29.06.201

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bags, of cotton
90
4202 22 30
Hand bags and shopping bags, of jute”;
and the entries at Schedule III from 124 to 130 were replaced as under:
(C) in Schedule III-9%, –
(xl) in S. No. 124. for the entry in column (3). the entry “Trunks, suit-cases, vanity-cases, executive-cases, brief-cases, school satchels, spectacle cases, binocular cases, camera cases, musical instrument cases, gun cases, holsters and similar containers; travelling-bags, insulated food or beverages bags, toilet bags, rucksacks, handbags, shopping bags, wallets, purses, map-cases, cigarette-cases, tobacco- pouches, tool bags, sports bags, bottle-cases, jewellery boxes, powder-boxes, cutlery cases and similar containers, of leather, of sheeting of plastics, of textile materials, of vulcanised fibre or of paperboard, or wholly or mainly covered with such materials or with paper [other than handbags and shopping bags, of cotton or jute]” shall be substituted:
(xli) after S. No. 124 and the entries relating thereto

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Exploring Principal-Agent Dynamics under CGST Act, 2017: Del-Credere Agents' Roles and GST Implications Explained.
Circulars
GST – States
Scope of principal and agent relationship under Sched

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New Circular Guides IGST Refund Process for Exports from Non-EDI Sites; Emphasizes Documentation and Timely Claims.
Circulars
Customs
Refund of IGST paid on exports of goods done from Non-EDI

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GST on Royaty paid to Govt
Query (Issue) Started By: – Ravikumar Doddi Dated:- 27-11-2018 Last Reply Date:- 29-11-2018 Goods and Services Tax – GST
Got 4 Replies
GST
Dear sir,
Whether GST is payable or not on royalty paid to Govt by Mining companies, at what rate if it is exempted PL give the notification or circular and SAC code.
Reply By KASTURI SETHI:
The Reply:
As per FAQ dated 31.7.17 (Q.No.22) GST is payable on royalty paid to Govt. under RCM.
Question 22 : Whether

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Amount paid on behalf of related party
Query (Issue) Started By: – Kaustubh Karandikar Dated:- 27-11-2018 Last Reply Date:- 3-12-2018 Goods and Services Tax – GST
Got 7 Replies
GST
XYZ is making payment to various parties on behalf of the persons / entities which are related to XYZ. The amount so paid is debited to the respective person / entities account. This being paid on behalf of related parties; will it amount to rendering service to related parties and XYZ will be liable to pay GST on it even if no consideration is received from related parties?
Reply By KASTURI SETHI:
The Reply:
Answer is 'yes'.This activity is in the course or furtherance of business. Hence covered under Serial No.2 of Schedule-1 (Section 7).

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ease throw light on this aspect ? Thanks a lot.
Reply By CASusheel Gupta:
The Reply:
Kasturi Sir
Definition of “intermediary” means a broker, an agent or any other person, by whatever name called, who arranges or facilitates the supply of goods or services or both, or securities, between two or more persons, but does not include a person who supplies such goods or services or both or securities on his own account.
In this case XYZ is not facilitating the supply of goods/services. Instead his role comes after the supply has already been made. Further, intermediary supplies his services, doesn't lend. In this case, XYZ is actually lending money to his related persons and on the instructions of these related persons payment is made to

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Comprehensive Maintenance Contract is a Composite Supply, Equipment Parts Supply and Services Agreement is a Mixed Supply.
Case-Laws
GST
Classification of supply – The activities performed under the ‘Comprehensive Maintenance Contract’ are to be treated as a composite supply of services and the activities performed under ‘Equipment Parts Supply and Services Agreement’ are to be treated as Mixed Supply.
TMI Updates – Highlights, quick notes, marquee, annotation, news, alerts

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GST Applied on One-Time Concession Fees for Long-Term Lease; No Exemptions Available Under Current Rules.
Case-Laws
GST
Levy of GST – One time concession fees charged – the applicant is not e

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Penalty for Transporting Goods Without E-way Bill Under GST Act Section 129; Risk of Confiscation for Non-compliance.
Case-Laws
GST
Penalty u/s 129 of GST Act – E-way bill – transport at the

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RECENT ADVANCE RULINGS IN GST (PART-10)
By: – Dr. Sanjiv Agarwal
Goods and Services Tax – GST
Dated:- 27-11-2018

Advance rulings are important in any tax law as it provides a forum for clarification and possible interpretation of statutory provisions. Moreover, it conveys the legislative intention from the revenue's view point. Provisions of advance ruling are contained in section 95 to 106 of CGST Act, 2017 and State / UT GST enactment. Rules 103 to 107 of also provide for forms, manner, certification etc.
The Authority for Advance Rulings (AAR) have been set up in all the states and we have now over 200 advance rulings on different issues already pronounced by various State Authorities. The appellate mechanism for filing appeals against AAR rulings is also in place and we have about twenty such appellate orders confirming or modifying the AAR orders. One major issue presently being faced is about multiple authorities (equal to number of States), each pronouncing a r

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hority for Advance Ruling and sought ruling on whether the said goods fall under Chapter Heading 8438 of Tariff and whether GST shall be applicable @18%.
The Authority for Advance Ruling ruled that 'Ice cream making machine' is classifiable under Tariff heading 84.18 of Customs Tariff Act, 1975 instead of 8438 and GST rate applicable to said product at the rate 28% [Mitora Machinex (P.) Ltd., In re (2018) 6 TMI 624 (AAR,Gujarat); ]
* The assessee made an application before the Authority for Advance Ruling and sought ruling on the following issues :
* Whether Tariff Heading 8535 covers products 'Electrical apparatus for switching or protecting electrical circuits or for making connections to or in electrical circuits for a voltage exceeding 1,000 volts and product Lighting Arrester is specifically covered under Tariff Heading 8535
* Whether Earthing Pipe specifically processed to make solely and principally for lightning arrester system and placed below ground level

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ng Code 995
[ IN RE : M/S. RAPID ELECTRODES PVT. LTD. 2018 (6) TMI 703 – AUTHORITY FOR ADVANCE RULING, GUJARAT ]
* Where the assessee made an application before the Authority for Advance Ruling and sought ruling on whether roof ventilators are classifiable as air or vacuum pumps under heading 8414 of Customs Tariff as adopted by GST.
As per the Rules for Interpretation of Customs tariff as made applicable to GST Tariff and General rules for Interpretation of the schedule, classification of Goods shall be governed by certain principles laid down therein. As per these general rules for interpretation, the heading which provides the most specific description shall be preferred to headings providing a more general description.
The primary function of these Roof ventilators is to provide ventilation by continuous extraction of air from the building. Even in trade parlance these goods are identified as Roof ventilators only and not as Windmills as contested by the applicant. Hence, i

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e said Chapter Head which is 28% as on date.
[Indo German Brakes (P.) Ltd, In re (2018) 6 TMI 369 (AAR, Uttarakhand); ]
Advance Ruling on activities relating to agricultural produce
Where the assessee is engaged into the activities of cleaning of the various Agriculture produce like saunf (fennel), dhaniya (coriander), Jeera (cumin seeds), etc. or the like goods which are brought to them by the farmers or by the traders. Such agricultural produce contains dust particles, certain small pieces of stones, dust, mud and other impurities etc. The applicant is having cleaning plant and they remove the various impurities but do not change the essential character of the agriculture produce but make the product marketable for primary market.
The assessee made an application before Authority of Advance Ruling and sought ruling on whether the activity of cleaning agricultural produce such a saunf, dhaniya (Coriander), jeera (cumin seeds), etc. by removing impurities like dust particles, ston

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CARPENTERS CLASSICS INDIA PVT. LTD. Versus ASSISTANT STATE TAX OFFICER, STATE GOODS AND SERVICE TAX DEPARTMENT, MUTHANGA, COMMISSION OF STATE TAXES, THIRUVANNATHAPURAM AND STATE OF KERALA, THIRUVANANTHAPURAM
GST
2018 (11) TMI 1571 – KERALA HIGH COURT – [2019] 61 G S.T.R. 185 (Ker), 2019 (20) G. S. T. L. 714 (Ker.)
KERALA HIGH COURT – HC
Dated:- 27-11-2018
WP (C). No. 38306 of 2018
GST
MR DAMA SESHADRI NAIDU, J.
For The Petitioner : ADVS. SRI. K. N. SREEKUMARAN SRI. N. SANTHOSHKUMAR AND SRI. P. J. ANILKUMAR
For The Respondent : DR. THUSHARA JAMES, GP
JUDGMENT
The petitioner, based at Bangalore, imports Kitchen cabinets, then, supplies and installs them in the houses of the customers, on their placing the orders. On 21.11.2018, the petitioner sent a consignment of three sets of kitchen cabinets to be installed in the houses of the customers in Thalassery and Kozhikode. The petitioner proposed to send them to Ernakulam and from there, it wanted to distribute to

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he GST Act, for the provisional release of the goods, the petitioner has filed this writ petition.
4. Sri K. N. Sreekumaran, the petitioner's counsel has advanced his arguments laced with emotion and a bit of rhetoric, too. He stressed that despite the change in tax regime, the authorities still refuse to change their mind set. According to him, the authority's literal approach is virtually stifling every industry and dampening the entrepreneurial spirit of the business people, as well.
5. Sri Sreekumaran also contends that even before the consignment could be dispatched from Bangalore, the petitioner generated the e-way bill online-and it is a verifiable fact. Though the driver carried the bill physically, as he is illiterate or semiliterate, he could not understand what the Assistant Tax Officer demanded. Perhaps panicked, he produced only the invoices and the local e-way bill, but not the e-way bill first generated for transporting the consignment from Bangalore to Ernakul

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the petitioner can put forward all its defences and may avoid any fine or penalty.
8. Heard Sri K. N. Sreekumaran, the learned counsel for the petitioner and Dr. Thusahara James, the learned Government Pleader for the respondents.
9. Indeed, I reckon the petitioner may have a genuine grievance. I also accept that it may not have tried to evade any tax. And the transaction, in that sense, could have been above board. That said, I must also note that the Assistant State Tax Officer followed only the law-especially, Rule 138A. And that rule reads thus:
138A. Documents and devices to be carried by a person- in-charge of a conveyance.-(1) The person in charge of a conveyance shall carry-
(a) the invoice or bill of supply or delivery challan, as the case may be; and (b) a copy of the e-way bill in physical form or the e-way bill number in electronic form or mapped to a Radio Frequency Identification Device embedded on to the conveyance in such manner as may be notified by the Commissi

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notification, require a class of transporters to obtain a unique Radio Frequency Identification Device and get the said device embedded on to the conveyance and map the e-way bill to the Radio Frequency Identification Device prior to the movement of goods.
(5) Notwithstanding anything contained in clause (b) of sub-rule (1), where circumstances so warrant, he Commissioner may, by notification, require the person-in-charge of the conveyance to carry the following documents instead of the eway bill.
(a) tax invoice or bill of supply or bill of entry; or
(b) a delivery challan, where the goods are transported for reasons other than by way of supply.”
10. As the learned Government Pleader has rightly contended, if online generation of e-way bill suffices, the Rule would not have insisted on the consignment carrying a copy of the bill or the number in electronic form. At any rate, the issue now concerns only the provisional release and the statute provides an efficacious mechanis

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M/s Hindon Machinery Tools Versus State Of U.P. And 3 Others
GST
2018 (11) TMI 1572 – ALLAHABAD HIGH COURT – 2019 (22) G. S. T. L. 4 (All.)
ALLAHABAD HIGH COURT – HC
Dated:- 27-11-2018
Writ Tax No. – 1494 of 2018
GST
Pankaj Mithal Versus Pankaj Bhatia JJ.
For the Petitioner : Ankur Agarwal,Suyash Agarwal
For the Respondent : C.S.C.,A.S.G.I.
ORDER
Heard Sri Suyash Agrawal and Sri C.B. Tripathi, learned counsel for the respondents.
The goods of the petitioner have been seized in transit on 5.11.2018 on the ground that on the E- Way Bill the number of tax invoice was incorrectly mentioned.
The submission Sri Suyash Agrawal, learned counsel for the petitioner is that the E- Way Bill only required mentioning of the do

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M/s Integrated Tech 9 Labs Private Limited Versus State Of U.P. And 2 Others
GST
2018 (12) TMI 346 – ALLAHABAD HIGH COURT – TMI
ALLAHABAD HIGH COURT – HC
Dated:- 27-11-2018
Writ Tax No. – 1492 of 2018
GST
Pankaj Mithal And Pankaj Bhatia JJ.
For the Petitioner : Anand Kumar Pandey
For the Respondent : C.S.C.
ORDER
Heard learned counsel for the petitioner and Sri C.B. Tripathi, special counsel for the respondents.
The petitioner has preferred this writ petition for quashing the order dated 31.1.2018 passed by the Assistant Commissioner U.P. Goods and Service Tax, Mobile Squad, Fifth Unit, NOIDA respondent No. 3 and has prayed that he may not proceed any further in pursuance thereof.
The petitioner had previously fi

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writ petition. It is settled law that successive writ petitions for the same cause of action are not maintainable and all questions which could have been taken or ought to have taken and if not decided would be deemed to have been adjudicated or declined.
This apart the seized goods of the petitioner have already been released after deposit/ submission of security of the amount specified in the order under Section 129(3) in accordance with provision of Section 129(1) of the Act making the matter final as provided under Section 129(5) of the Act.
Accordingly we do not find any substance in this petition and dismiss this petition with liberty to petitioner to take the course to the appropriate remedy as may be available in law against the o

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The Principal Commissioner of GST & Central Excise Versus M/s. Consolidated Construction Consortium Ltd., Chennai-4
Service Tax
2018 (12) TMI 934 – MADRAS HIGH COURT – TMI
MADRAS HIGH COURT – HC
Dated:- 27-11-2018
Civil Miscellaneous Appeal Nos.2745 to 2749 of 2018 And CMP.Nos.20855, 20857, 20860 & 20863 of 2018
Service Tax
Mr. Justice T.S. Sivagnanam And Mr.Justice N. Sathish Kumar
For the Appellant : Mr.T.Pramod Kumar Chopda
For the Respondent : Mr.N.Viswanathan and Mr.S.Baskaran
COMMON JUDGMENT
T.S.SIVAGNANAM, J
Mr.N.Viswanathan and Mr.S.Baskaran, learned counsel accept notice for the respondent. We have heard the learned counsel on either side and with consent, the above appeals are taken up for joint disposal.
2. These appeals are filed by the Revenue under Section 35G of the Central Excise Act, 1944 (hereinafter called the Act) challenging the common final order passed by the Customs, Excise and Service Tax Appellate Tribunal (hereinafter called the Tr

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e assessee without verifying the claim of the assessee that they completed the services prior to 01.6.2007 and consequently, they are entitled for abatement.
5. We have perused the common order passed by the Tribunal and we find that the Tribunal took note of an earlier passed in the assessee's own case in Final Order No.40902/2016 dated 06.6.2016.
6. The learned Senior Standing Counsel appearing for the appellant has contended that the said final order passed by the Tribunal dated 06.6.2016 was an order remanding the matter with the specific direction to the Adjudicating Authority to examine the taxability of the services involved in the execution of the works contract and if such contracts were executed prior to 01.6.2007, the Adjudicating Authorities were directed to deal with such cases after taking note of the decision of the Hon'ble Supreme Court in the case of Commissioner of Central Excise & Customs, Kerala Vs. Larsen & Toubro Limited [reported (2015) 39 STR 913].
7. It is a

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ed in the show cause notice dated 30.11.2010. It is further pointed out that in yet another assessment for the period from April 2011 to March 2012 and for the subsequent periods, show cause notices were issued and were adjudicated and Orders-in-Original dated 22.3.2018 were passed dropping the proposal in the relevant show cause notices by accepting the claim of the assessee with regard to abatement.
10. Though the learned counsel for the assessee is partially right in referring to the Orders-in-Original dated 27.1.2017 and 22.3.2018, still we cannot dispense with the verification process because the periods involved in these appeals are different from the periods involved in the other cases.
Therefore, to that extent, we are of the opinion that the Adjudicating Authority should verify the nature of transactions to ascertain as to whether the decision of the Hon'ble Supreme Court in the case of Larsen & Toubro Limited can be applied to the case of the assessee.
11. Accordingly, the

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Sweetshop Edibles and Restaurant Bundled as Service for Tax: Pure Food Items Considered Part of Restaurant Operations.
Case-Laws
GST
Supply of pure food items such as sweetmeats, namkeens, co

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Early Payment Discounts by Del Creder Agents Not Liable for GST, Says Tax Authority.
Case-Laws
GST
Supply or not – amount passed on to the customer by Del Creder Agent (DCA) on account of the

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Job Work rules
Query (Issue) Started By: – MJ Enterprises Dated:- 26-11-2018 Last Reply Date:- 28-11-2018 Goods and Services Tax – GST
Got 6 Replies
GST
Section 2(68) of the CGST Act, 2017 defines job work as 'any treatment or process undertaken by a person on goods belonging to another registered person'. The one who does the said job would be termed as 'job worker'. The ownership of the goods does not transfer to the job worker but it rests with the principal. The job worker is required to carry out the process specified by the principal, on the goods.
MyQuery is : It is immaterial as to whether the job worker undertakes job work in his premises or in the premises of service receiver.? and which say with Rules and section Pl

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one it will take of shape erstwhile BAS category/supply of Manpower.
Reply By KASTURI SETHI:
The Reply:
All the above factors are hinting at separate premises. Even separate registration is required for doing job work, if turnover exceeds threshold exemption limit.
Reply By Venkat Enterprises:
The Reply:
He'll sir,
Thank you for your reply, but sir if one job work forming work of principles and for some work he entered into contract with other and who performing there job on the premises of job worker. As job worker can employee other job worker for the completion of principles job as there is no provision in section of job work. Can this contract is treated as job work (supply of labour) and if not what will the treatment?
Reply

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CONTRACT BOTTLING A SERVICE
By: – Dr. Sanjiv Agarwal
Goods and Services Tax – GST
Dated:- 26-11-2018

It is now affirmed that beer bearing a brand or owned by brand owners which are manufactured by Contract Bottling Units or tie-up units (generally known in trade as CBUs) is a supply of service which attracts Goods and Services Tax (GST).
A recap
United Breweries Ltd. sought an advance ruling from the Authority for Advance Rulings (AAR), Karnataka on the following two issues:
* Whether beer bearing brand/s owned by Brand Owner manufactured by Contract Brewing Units (CBUs) out of the raw materials, packaging materials and other input materials procured by it and accounted by it and thereafter selling such beer to various parties under its invoicing would be considered as supply of services and whether GST is payable by the CBUs on the profit earned out of such manufacturing activity? and
Whether GST is payable by the Brand owner on the "Surplus Profit" t

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amount retained by the CBUs as their profit.
It was ruled that since the applicant is engaged in supply of service and the service does not find mention at any other entry in the Classification table it has to be placed in the residual entry. The applicable rate of Central Tax as per serial number 35 of the Notification No. 11/2017-CT(Rate) dated 28.06.2017.
It was also ruled that GST is payable by the Brand owner on 'Surplus Profit' transferred by the CBU to brand owner out of the manufacturing activity and the supply of service to the CBUs is classified under Service Code (Tariff) 999799 and liable to pay GST at 18% (CGST-9%, SGST-9%) on the amount received from the CBUs. [As reported in IN RE : M/S UNITED BREWERIES LIMITED (2018) 7 TMI 835; vide ruling dated 28.06.2018].
Appellate Affirmation
Industry leader, not being satisfied, approached the doors of Appellate Authority of Advance Ruling (AAAR), Karnataka for a review.
It was submitted against the said ruling that AAR

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f service under Central /State Goods and Service Tax Act, 20l7, whereas there is only a monetary transaction between the Appellant and the CBU by way of transfer of apportioned profit from supply of beer, which is excluded from the ambit of charge under provision of the said Act.
The Authority erred in not appreciating the fact that the arrangement between the Appellant and the CBU was in the nature of consortium for earning profit from operation of beer manufacture and supply, necessitated by the regulations governing the supply of beer.
That the Authority erred in not following the settled positions as cited in the relied upon decisions above wherein it was held that the activity of permitting the CBU to manufacture alcoholic beverages on behalf of the principal does not amount to rendering of taxable service under the category of IPR service.
The AAAR interpreted the scope of 'supply' as per section 7 and charging section 9 of the GST law. While section 9 clearly excludes the s

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ceived for a 'mixed supply'.
While in overall terms, at times the service supplied assumes the character of permitting the use of intellectual property rights, or of being a franchise service, at other times it takes on the colour and character of being secondment of personnel. The varied nature in the character of the services supplied by the Appellant, makes it difficult to determine the pre-dominancy in terms of characterisation since the consideration for some elements of the supply is being received in terms of a variable amount.
Since, the activity which the Appellant engages in with respect to contract does not essentially change, hut the volume of consideration can change in each tax period, it does pose a challenge in terms of giving one particular nomenclature to the activities of the Appellant that would remain unchanged over all tax periods.
There is a standard rate of 18% which applies across the whole range of services that are taxed under GST. However, this fact of ha

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ms of Section 9 of the CGST Act,
* The service supplied by the Appellant is classified under the Service Code 999799 as 'other services nowhere else classified'.
* The amounts received by the Appellant from the contracting units under the Agreement, in the nature of brand fee and reimbursement of expenses, is termed as a consideration for the supply of service and is chargeable to GST at the applicable rate of 18%.
End Note
To conclude, it can be said that it is now settled from the advance ruling perspective that activities of contract bottling of beer shall be eligible to levy of GST @ 18%. However, an assessee may still knock the doors of High Court or Supreme Court by way of a writ petition.
Further, since we have now an AAAR affirmed advance ruling which is atleast binding on the applicant and its jurisdictional tax officer, it indicates that the same analogy would apply to other bottling activities like alcoholic liquor (other than beer), pharma, FMCG and other industries

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Area wise working / checklist for annual return and GST audit
By: – Sandeep Rawat
Goods and Services Tax – GST
Dated:- 26-11-2018

Area wise working / checklist for annual return and GST audit
As this is first year of annual return and GST audit, registered person as well as professional are also in dilemma situation for fulfilling the compliance under GST law so that the requite information which is required in filing the annual return and GST audit could be prepared in time and order.
In this regards I have prepared areas wise working plan/checklist which prescribed the requisite documents and actions for the annual return and GST audit.
GST REGISTRATION CERTIFICATE
* Have you checked whether the Supplier has applied for New Registration or has he Migrated?
* Have you checked the registration details of: Registered Person, Business Verticals, Factory / Warehouse / Godown, ISD and in respect of other place of business?
* Whether GSTIN is displayed in Name Board

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* Whether refund voucher is issued for refund of advance received?
* Whether Credit note/ Debit notes are issued as per the provisions of the GST law as per section 34?
* Whether Credit note/Debit Note is issued before 30th September of the Subsequent Financial Year?
* Have you checked correctness of Tax Invoice /Bill of supply with the appropriate Supply Register/ GSTR 1?
* Whether the Tax Invoice/Bill of supply is cancelled for genuine reasons, if any like Name of party /details where applicable?
* Whether any Invoice cum Bill of supply is raised for specific transactions?
* Whether the transport documents are maintained and verified?
* Whether any copies of Credit Note and Debit Note are raised otherwise than as specified in section 34?
* Whether the Delivery challan/E- way bill Register is maintained?
* Whether Series of documents issued as per clause 13 of GSTR 1 matches with Books of Account from July 2017 to March 2018?
GOODS SENT TO JOB WORK
* Whether the

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xport and Merchant Export etc. are appropriately classified under GST law?
* Whether any transactions which falls within the scope of supply has not been identified by the registered person
* Have you checked Interstate supply as per section 7(5) of IGST Act 2017?
* Have you checked Intra State supply as per section 8 of IGST Act 2017?
* Whether the Zero-rated supply is verified as per the provisions of the law?
* Whether the supplies made by registered person falls within the meaning of Composite /non- composite/ Mixed supply? If yes, whether the same has been offered to tax as per section 8 of CGST Act?
* Have you checked for sale of capital goods and the GST charged and as to whether they are included in the returns filed ?
* Whether Interstate supply is regarded as Intra state supply and vice versa?
* Whether abatement provisions, if any, are applicable (like one third for land) is compiled with?
* Whether the transactions are correctly classified as supply of goo

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cked the inward supplies records with Monthly return and ascertained reasons for variations, if any?
* Have you made a list of restricted input tax credit items as per the GST law?
* Have you tallied monthly return with Input tax credit receivable, if any?
* Have you reconciled tax collections with payments and transfer of the balance to appropriate accounts?
* Have you checked adjustment of tax set-off by relevant journal entries?
* Have you checked that input tax credit on capital goods is correctly availed?
* Whether Input Tax credit is reversed for the sale of capital goods as specified in GST law?
* Any Reversal of input tax credit for the goods sent for job work?
* Whether the recipient of supply has effected payment for such inward supply within 180 days from the date of Invoice?
* Whether input tax credit availed is debited to recoverable account for availing re-credit?
* Whether the supplier has availed both benefits of depreciation and input tax credit?

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STRIBUTOR
* Whether separate registration is taken as per Provisions of law?
* Whether any tax is payable under reverse charge and obtained separate Registration?
* Whether eligible and ineligible input tax credit is apportioned as per the GST law?
* Is there is any reversal of Input tax credit and credit note is issued?
* Whether the calculation of Turnover for allocating the input tax credit is as per the law?
* Whether the ISD invoice containing the relevant particulars is issued correctly as per the provisions of the law?
CLASSIFICATIONS
* Whether the classification of goods/ services is in conformity with the Schedules / Notifications?
* Whether the HSN classification is verified to confirm the rate of tax on goods and services?
* Whether the HSN details for inward and outward supply are verified?
* Whether the SAC code/HSN code is as per the law?
* Whether the HSN /SAC classification is same as followed in erstwhile law if applicable?
* Is there any speci

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ax payer charged wrongly IGST in place of CGST/SGST or vice versa?
* Have you followed the provisions of Rule 35 of the CGST Rules in respect of collection of taxes?
* Is there any excess collection of taxes?
REVERSE CHARGE
* Whether reverse charge tax is paid under 9(4) of the CGST Act 2017 up to 12th October 2017?
* Whether Reverse charge tax on notified supplies under section 9(3) and 9(5) of the CGST Act 2017 is duly paid?
* Whether reverse charge tax has been paid wrongly in lieu of CGST/SGST as IGST or vice versa?
* Whether corresponding input tax credit is availed on Reverse charge?
* Whether conditions of paying tax for RCM are fulfilled?
VALUE OF SUPPLY
* Whether all the inclusions to the value of supply as per section 15 of the Act have been verified?
* Whether discount offered to customers (pre/ post supply) is not included in the value of supply after fulfilment of conditions under section 15(3) of the Act?
* Whether valuation rules have been applied a

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export of goods are fulfilled?
* Whether the conditions are fulfilled for export of services?
* Whether there are any imports of goods/import of services?
* Whether the Zero-rated supply is with or without payment of taxes?
* Whether the conditions for location of supplier are fulfilled?
* Whether the supplier is intermediary under the GST Act and the conditions are fulfilled?
* Whether the supplier has declared sale in course of Imports, Non- territory supply, High Sea supply in the Return correctly?
* Whether the conditions for location of recipient are fulfilled?
* Whether the wrong payment of tax i.e. IGST in lieu of SGST/CGST is claimed as refund?
* Whether the wrong payment of tax i.e. SGST/CGST in lieu of IGST is claimed as refund?
* Whether the Supply by SEZ to DTA is treated as inter-State subject to fulfilment of conditions?
REFUND
* Whether the Supplier is eligible for Refund as per section 54?
* Whether the supplier has applied for Refund and wheth

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in inward supply records and GST return?
* Have you checked that inward supplies are classified between intra-State, inter-states, Imports etc.?
* Have you checked that purchases of capital goods are booked as fixed assets and the GST is paid thereon? Have you checked Assets which have depreciated 100%?
* Have you checked sale / deletion of fixed assets?
MAINTENANCE OF BOOKS OF ACCOUNTS
* Whether books of accounts are maintained as specified in section 35 r/w Rules 56, 57 and 58 of the GST Law?
* Whether Books of accounts are maintained electronically manually?
* Whether books of accounts are maintained at each place of business?
* Whether books of accounts are maintained manually or electronically? If the same is maintained electronically, whether the software used complies with the requirements of the law?
* Whether the copies of Agreements/Agent agreement and other supporting documents are obtained?
* Whether the copies of Audited Financial Statements for each reg

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ernal/ Statutory auditors or any other such reports?
* Have you checked for any adverse points in reports in the previous year?
* Have you checked that assessment orders /APPEAL orders/notices issued by the department if any?
* Is there any judicial pronouncement that could be applicable to the dealer?
* Have you discussed any adverse issues arising out of the audit with the client?
* Have you obtained the letter of appointment / issued the letter of acceptance of audit?
* Have you come across any unusual transactions?
* Have you checked miscellaneous receipts / other income?
* Have you come across any huge or unusual inward or outward supply transactions / tax credits /tax payments etc.?
* Have you noticed any comments on internal controls, periodicity of updation of accounts / records etc.?
* Whether the registered person has availed the facility of digital signature?
* Whether the Auditor has used appropriate Audit tools?
(Mr. Sandeep Rawat has vast experience

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