Author: admin_gst

GST – States – S.O. No.76-49/2018-State Tax – Dated:- 4-10-2018 – COMMERCIAL TAXES DEPARTMENT – Notification 4th October, 2018 Notification No. 49/2018-State Tax S.O. No-76 Dated- 5th October, 2018- In exercise of the powers conferred by section 164 of the Jharkhand Goods and Services Tax Act, 2017 (12 of 2017), the Government of Jharkhand hereby makes the following rules further to amend the Jharkhand Goods and Services Tax Rules, 2017, namely:- 1. (1) These rules may be called the Jharkhand Goods and Services Tax (Tenth Amendment) Rules, 2018. (2) They shall come into force from 13th September, 2018. 2. In the FORMS to the Jharkhand Goods and Services Tax Rules, 2017, after FORM GSTR-9A, the following shall be inserted, namely:- FORM GSTR-9C See rule 80(3) PART – A – Reconciliation Statement Pt. I Basic Details 1 Financial Year 2 GSTIN 3A Legal Name < Auto > 3B Trade Name (if any) <Auto > 4 Are you liable to audit under any Act? << Please specify >> (Amount i

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ssible under GST (-) K Adjustments on account of supply of goods by SEZ units to DTA Units (-) L Turnover for the period under composition scheme (-) M Adjustments in turnover under section 15 and rules thereunder (+/-) N Adjustments in turnover due to foreign exchange fluctuations (+/-) O Adjustments in turnover due to reasons not listed above (+/-) P Annual turnover after adjustments as above < Auto > Q Turnover as declared in Annual Return (GSTR9) R Un-Reconciled turnover (Q – P) AT1 6 Reasons for Un – Reconciled difference in Annual Gross Turnover A B C Reason 1 << Text >> Reason 2 << Text >> Reason 3 << Text >> 7 Reconciliation of Taxable Turnover A Annual turnover after adjustments (from 5P above) <Auto> B Value of Exempted, Nil Rated, Non-GST supplies, No-Supply turnover C D E F Zero rated supplies without payment of tax Supplies on which tax is to be paid by the recipient on reverse charge basis Taxable turnover as per adjustments

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ional amount payable but not paid (due to reasons specified under Tables 6,8 and 10 above) To be paid through Cash Description Taxable Value Central tax State tax/UT tax Integrated tax Cess, if applicable 1 2 3 4 5 6 5% 12% 18% 28% 3% 0.25% 0.10% Interest Late Fee Penalty Others (please specify) Pt. Reconciliation of Input Tax Credit (ITC) IV 12 Reconciliation of Net Input Tax Credit (ITC) A ITC availed as per audited Annual Financial Statement for the State/ UT (For multi-GSTIN units under same PAN this should be derived from books of accounts) B ITC booked in earlier Financial Years claimed in current Financial Year (+) C ITC booked in current Financial Year to be claimed in subsequent Financial Years (-) D ITC availed as per audited financial statements or books of account < Auto > E ITC claimed in Annual Return (GSTR9) F Un-reconciled ITC ITC 1 13 Reasons for un-reconciled difference in ITC A B C Reason 1 << Text >> Reason 2 << Text >> Reason 3 <&lt

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; 16 Tax payable on un-reconciled difference in ITC (due to reasons specified in 13 and 15 above) Description Amount Payable Central Tax State/UT Tax Integrated Tax Cess Interest Penalty Pt.V Auditor's recommendation on additional Liability due to non-reconciliation To be paid through Cash Description Value Central tax State tax/UT tax Integrated tax Cess, if applicable 1 2 3 4 5 6 5% 12% 18% 28% 3% 0.25% 0.10% Input Tax Credit Interest Late Fee Penalty Any other amount paid for supplies not included in Annual Return (GSTR 9) Erroneous refund to be paid back Outstanding demands to be settled Other (Pl. specify) Verification: I hereby solemnly affirm and declare that the information given herein above is true and correct to the best of my knowledge and belief and nothing has been concealed there from. **(Signature and stamp/Seal of the Auditor) Place: …………… Name of the signatory ………………… Membership No

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e multiple GSTINs (State-wise) registrations exist on the same PAN. This is common for persons / entities with presence over multiple States. Such persons / entities, will have to internally derive their GSTIN-wise turnover and declare the same here. This shall include export turnover (if any). It may be noted that reference to audited Annual Financial Statement includes reference to books of accounts in case of persons / entities having presence over multiple States. 5B Unbilled revenue which was recorded in the books of accounts on the basis of accrual system of accounting in the last financial year and was carried forward to the current financial year shall be declared here. In other words, when GST is payable during the financial year on such revenue (which was recognized earlier), the value of such revenue shall be declared here. (For example, if rupees Ten Crores of unbilled revenue existed for the financial year, 2016-17, and during the current financial year, GST was paid on ru

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nbilled revenue which was recorded in the books of accounts on the basis of accrual system of accounting during the current financial year but GST was not payable on such revenue in the same financial year shall be declared here. 5I Value of all advances for which GST has not been paid but the same has been recognized as revenue in the audited Annual Financial Statement shall be declared here. 5J Aggregate value of credit notes which have been accounted for in the audited Annual Financial Statement but were not admissible under section 34 of the SGST Act shall be declared here. 5K Aggregate value of all goods supplied by SEZs to DTA units for which the DTA units have filed bill of entry shall be declared here. 5L There may be cases where registered persons might have opted out of the composition scheme during the current financial year. Their turnover as per the audited Annual Financial Statement would include turnover both as composition taxpayer as well as normal taxpayer. Therefore,

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10 and 11 of Annual Return (GSTR 9). 6 Reasons for non-reconciliation between the annual turnover declared in the audited Annual Financial Statement and turnover as declared in the Annual Return (GSTR 9) shall be specified here. 7 The table provides for reconciliation of taxable turnover from the audited annual turnover after adjustments with the taxable turnover declared in annual return (GSTR-9). 7A Annual turnover as derived in Table 5P above would be auto-populated here. 7B Value of exempted, nil rated, non-GST and no-supply turnover shall be declared here. This shall be reported net of credit notes, debit notes and amendments if any. 7C Value of zero rated supplies (including supplies to SEZs) on which tax is not paid shall be declared here. This shall be reported net of credit notes, debit notes and amendments if any. 7D Value of reverse charge supplies on which tax is to be paid by the recipient shall be declared here. This shall be reported net of credit notes, debit notes and

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s by the recipient (i.e. the person for whom reconciliation statement has been prepared) shall be declared. 9P The total amount to be paid as per liability declared in Table 9A to 9O is auto populated here. 9Q The amount payable as declared in Table 9 of the Annual Return (GSTR9) shall be declared here. It should also contain any differential tax paid on Table 10 or 11 of the Annual Return (GSTR9). 10 Reasons for non-reconciliation between payable / liability declared in Table 9P above and the amount payable in Table 9Q shall be specified here. 11 Any amount which is payable due to reasons specified under Table 6, 8 and 10 above shall be declared here. 6. Part IV consists of reconciliation of Input Tax Credit (ITC). The instructions to fill Part IV are as under:- Table No. Instructions 12A ITC availed (after reversals) as per the audited Annual Financial Statement shall be declared here. There may be cases where multiple GSTINs (State-wise) registrations exist on the same PAN. This is

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s as derived from values declared in Table 12A, 12B and 12C above will be auto-populated here. 12E Net ITC available for utilization as declared in Table 7J of Annual Return (GSTR-9) shall be declared here. 13 Reasons for non-reconciliation of ITC as per audited Annual Financial Statement or books of account (Table 12D) and the net ITC (Table-12E) availed in the Annual Return (GSTR-9) shall be specified here. 14 This Table is for reconciliation of ITC declared in the Annual Return (GSTR-9) against the expenses booked in the audited Annual Financial Statement or books of account. The various sub-heads specified under this table are general expenses in the audited Annual Financial Statement or books of account on which ITC may or may not be available. Further, this is only an indicative list of heads under which expenses are generally booked. Taxpayers may add or delete any of these heads but all heads of expenses on which GST has been paid / was payable are to be declared here. 14R Tota

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by the auditor shall be declared in this Table. 8. Towards, the end of the reconciliation statement taxpayers shall be given an option to pay their taxes as recommended by the auditor. PART – B- CERTIFICATION I. Certification in cases where the reconciliation statement (FORM GSTR-9C) is drawn up by the person who had conducted the audit: * I/we have examined the- (a) balance sheet as on ……… (b) the *profit and loss account/income and expenditure account for the period beginning from ………..…to ending on ……., and (c) the cash flow statement for the period beginning from ……..…to ending on ………, -attached herewith, of M/s. …………… (Name), …………………….………… (Address), ..…………………(GSTIN). 2. Based on our audit I/we report that the sa

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provided/partially provided to us. (B) In *my/our opinion, proper books of account *have/have not been kept by the registered person so far as appears from*my/ our examination of the books. (C) I/we certify that the balance sheet, the *profit and loss/income and expenditure account and the cash flow Statement are *in agreement/not in agreement with the books of account maintained at the Principal place of business at ……………………and ** ……………………additional place of business within the State. 4. The documents required to be furnished under section 35 (5) of the SGST Act and Reconciliation Statement required to be furnished under section 44(2) of the SGST Act is annexed herewith in Form No. GSTR-9C. 5. In *my/our opinion and to the best of *my/our information and according to explanations given to *me/us, the particulars given in the said Form No.GSTR-9C are true and correct subject

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p;……………………… **(Signature and stamp/Seal of the Auditor) Place: …………… Name of the signatory ………………… Membership No……………… Date: …………… Full address ……………………… II. Certification in cases where the reconciliation statement (FORM GSTR-9C) is drawn up by a person other than the person who had conducted the audit of the accounts: *I/we report that the audit of the books of accounts and the financial statements of M/s.………………..…………………. (Name and address of the assessee with GSTIN) was conducted by M/s. …………………………………………..…&he

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required by the Jharkhand SGST Act, 2017 and the rules/notifications made/issued thereunder *has not maintained the following accounts/records/documents as required by the Jharkhand SGST Act, 2017 and the rules/notifications made/issued thereunder: 1. 2. 3. 3. The documents required to be furnished under section 35 (5) of the SGST Act and Reconciliation Statement required to be furnished under section 44(2) of the SGST Act is annexed herewith in Form No.GSTR-9C. 4. In *my/our opinion and to the best of *my/our information and according to examination of books of account including other relevant documents and explanations given to *me/us, the particulars given in the said Form No.9C are true and correct subject to the following observations/qualifications, if any: (a) …………………………….…………………………….……………&he

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GST – States – S.O. No. 71-39/2018-State Tax – Dated:- 4-10-2018 – COMMERCIAL TAXES DEPARTMENT – Notification 4th October, 2018 Notification No. 39/2018-State Tax S.O. No.71 Dated-4th October, 2018- In exercise of the powers conferred by section 164 of the Jharkhand Goods and Services Tax Act, 2017 (12 of 2017), the Government of Jharkhand hereby makes the following rules further to amend the Jharkhand Goods and Services Tax Rules, 2017, namely:- 1. (1) These rules may be called the Jharkhand Goods and Services Tax (Eighth Amendment) Rules, 2018. (2) Save as otherwise provided, this notification shall be deemed to be effective from 4th September, 2018. 2. In the Jharkhand Goods and Services Tax Rules, 2017, (hereinafter referred to as the said rules), in rule 22, in sub-rule (4), the following proviso shall be inserted, namely:- Provided that where the person instead of replying to the notice served under sub-rule (1) for contravention of the provisions contained in clause (b) or clau

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ed 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. . 6. In the said rules, with effect from the 23rd October, 2017, in rule 96, for sub-rule (10), the following sub-rule shall be substituted, namely:- (10) The persons claiming refund of integrated tax paid on exports of goods or services should not have – (a) received supplies on which the benefit of the Government of Jharkhand, Commercial Taxes Department published in the Gazette of Jharkhand, Extraordinary, vide S.O. No. 113, dated the 24th Octob

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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. . 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 notice referred to above. Upon consideration of your reply and/or submissions made during hearing, the proceedings initiated for cancellation of registration stands vacated for the following reasons: <> or The above referred show cause notice was issued for contravention of the provisions of clause (b) or clause (c) of sub-section (2) of section 29 of the Jharkhand Goods Ser

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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 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 (B) Details of inputs / capital goods received back from job worker other than the job worker to whom such goods were originally sent for job work; and losses and wastes: GSTIN/State of job worker if unregistered Challan No. issued by job worker under which goods hav

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ntry 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 knowledge and belief and nothing has been concealed there from. Signature Name of Place Authorised Signatory ……… Date Designation /Status………………… . 10. In the said rules, after FORM GSTR-8, the following FORMS shall be inserted, namely:- FORM GSTR-9 (See rule 80) Annual Return Pt. I Basic Details 1 Financial Year 2 GSTIN 3A Legal Name 3

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/ 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 Notes issued in respect of transactions specified in A to F above (+) J Supplies declared through Amendments (+) K Supplies reduced through Amendments (-) L Sub-Total (H to K above) M Turnover on which tax is not to be paid (G + L above) N Total Turnover (including advances) (4N + 5M – 4G above) Pt. III Details of ITC as declared in returns filed during the financial year Description Type Central Tax State Tax/UT Tax Integrated

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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 (6O – 7I) 8 Other ITC related information A ITC as per GSTR-2A(Table 3 & 5 thereof) B ITC as per sum total of 6(B) and 6(H) above C ITC on inward supplies (other than imports and inward supplies liable to reverse charge but includes services received from SEZs) received during 2017-18 but availed during April to September, 2018 D Difference [A-(B+C)] E ITC available but not availed (out of D) F ITC available but ineligible

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led 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 Total demands pending out of E above 16 Information on supplies received from composition taxpayers, deemed supply under section 143 and goods sent on approval basis Details Taxable Value Central Tax State Tax/UT Tax Integrated Tax Cess 1 2 3 4 5 6 A Supplies received from Composition taxpayers B Deemed supply under Section 143 C Goods sent on approval basis but not returned 17 HSN Wise Summary of outward supplies HSN Code UQC Total

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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 be declared as net of credit notes or debit notes issued in this regard. Table 5, Table 7 along with respective amendments in Table 9 and Table 10 of FORM GSTR-1 may be used for filling up these details. 4B Aggregate value of supplies made to registered persons (including supplies made to UINs) on which tax has been paid shall be declared here. These will include supplies made through E-Commerce operators but shall not include su

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(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 exports (4E) shall be declared here. Table 9B of FORM GSTR-1 may be used for filling up these details. 4J Aggregate value of debit notes issued in respect of B to B supplies (4B), exports (4C), supplies to SEZs (4D) and deemed exports (4E) shall be declared here. Table 9B of FORM GSTR-1 may be used for filling up these details. 4K & 4L Details of amendments made to B to B supplies (4B), exports (4C), supplies to SEZs (4D) and de

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f 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 filling up these details. 5N Total turnover including the sum of all the supplies (with additional supplies and amendments) on which tax is payable and tax is not payable shall be declared here. This shall also include amount of advances on which tax is paid but invoices have not been issued in the current year. However, this shall not include the aggregate value of inward supplies on which tax is paid by the recipient (i.e. by th

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rom 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 inputs, capital goods and input services. Table 4(A)(3) of FORM GSTR-3B may be used for filling up these details. 6E Details of input tax credit availed on import of goods including supply of goods received from SEZs shall be declared here. It may be noted that the total ITC availed is to be classified as ITC on inputs and capital goods. Table 4(A)(1) of FORM GSTR-3B may be used for filling up these details. 6F Details of input tax

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ails 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 and 7H Details of input tax credit reversed due to ineligibility or reversals required under rule 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 claimed under FORM GST TRAN-I or FORM GST TRAN-II and then subsequently reversed. Table 4(B) of FORM GSTR-3B may be used for filling up these details. Any ITC reversed through FORM ITC -03 shall be declared in 7H. 8A The total credit available for inwards supplies (other than imports and inwards supplies liable to reverse charge but includes services received from SEZs) received during 2017-18 and reflected in FORM GSTR-2A (table 3 &

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uld 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 the previous financial year but declared in the returns of April to September of 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 201718 shall be declared), whichever is earlier. The instructions to fill Part V are as follows: Table No. Instructions 10 & 11 Details of additions or amendments

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ed 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 aggregate value of all refund sanction orders. Refund pending will be the aggregate amount in all refund application for which acknowledgement has been received and will exclude provisional refunds received. These will not include details of non-GST refund claims. 15E, 15F and 15G Aggregate value of demands of taxes for which an order confirming the demand has been issued by the adjudicating authority shall be declared here. Aggregate value of taxe

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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 (if any) 4 Period of composition scheme during the year (From To ) 5 Aggregate Turnover of Previous Financial Year (Amount in in all tables) Pt. II Details of outward and inward supplies declared in returns filed during the financial year Description Turnover Rate of Tax Central Tax State/UT Tax Integrated tax Cess 1 2 3 4 5 6 7 6 Details of Outward supplies on which tax is payable as declared in returns filed during the financial year A Taxable B Exempted, Nil-rated C To

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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 made in 10, 11, 12 & 13 above Description Payable Paid 1 2 3 Integrated Tax Central Tax State/UT Tax Cess Interest Pt. V Other Information 15 Particulars of Demands and Refunds Description Central Tax State Tax/UT Tax Integrated Tax Cess Interest Penalty Late Fee/Others 1 2 3 4 5 6 7 8 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 Total demands pending out of E abo

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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 value of all outward supplies net of debit notes / credit notes, net of advances and net of goods returned for the entire financial year shall be declared here. Table 6 and Table 7 of FORM GSTR-4 may be used for filling up these details. 6B Aggregate value of exempted, Nil Rated and Non-GST supplies shall be declared here. 7A Aggregate value of all inward supplies received from registered persons on which tax is payable on reverse charge basis shall be declared here. Table 4B, Table 5 and

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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(relating to outward supplies) of FORM GSTR- 4 of April to September of the current financial year or upto the date of filing of Annual Return for the previous financial year, whichever is earlier shall be declared here. 5. Part V consists of details of other information. The instruction to fill Part V 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 a

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sed 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. ; 11. 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 in the second column, the letters and words SKD or CKD or supply in batches or lots shall be substituted. [File.No Va Kar / GST / 04/ 2018] By the order of the Governor of Jharkhand, K. K. Khandelwal, Additional Chief Secretary Note:- The principal rules were published in the Gazette of Jharkhand, Extraordinary vide notification No. 3/2017- State Tax, dated the 20th June, 2017, published vide S.O. No. 28 dated the 20thJune, 2017 and last amended vide notification No. 29/2018- State Tax, dated the 26th July, 2018,

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2018 (10) TMI 692 – CESTAT NEW DELHI – TMI – Excess amount collected ‘in the name of Central Excise duty’ – section 11D(1) and (1A) of the Central Excise Act, 1944 – case of assessee is that since they are not liable to pay duty on the goods sold by them, the provisions of section 11D of Central Excise Act, 1944 are not applicable in their case for a period prior to 10.5.2008 and also that the excess amount collected by them in the name of Central Excise duty has already been returned back by them to their customers – time limitation.
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Held that:- It can be seen that section 11D(i) as it existed prior to 10.5.2008 provided that any person who is liable to pay duty under the Central Excise Act or rules, made thereunder need to pay back the excess amount collected by them, thus it appears on plain reading that it primarily covers the producer or manufacturer of excisable goods or the person storing such goods in a warehouse who pays the duty on excisable goods at the time of remova

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vat difference has been given back by them for a period April to June, 2009. But it is not a refund of excess amount collected by them rather for lack of evidence the possibility cannot be ruled out that buyer may have taken the credit of these cenvat difference in their books of accounts and might have used them for further passing the cenvat credit to their customers – it is not a proper return of the excess collected amount which was in the name of Central Excise duty.
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Time Limitation – Held that:- A plain reading of section 11D makes it evidently clear that no period of limitation has been prescribed under this particular section – in the present case, demand is purely and only under section 11D of the Central Excise Act wherein the law does not provide any period of limitation – demand not barred by limitation of time.
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Appeal dismissed – decided against appellant. – Excise Appeal No. 51579 of 2018 – FINAL ORDER No.53063/2018 – Dated:- 4-10-2018 – Mr. C L Mahar, Member

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06,199/- is allegedly collected in excess of what has been actually paid by them to the department. Both the show cause notices have demanded from the appellant to deposit the excess amount collected by them in the name of Central Excise duty under section 11D(1) and (1A) of the Central Excise Act, 1944. The matter has been decided by the Commissioner (Appeals) vide his order dated 31.1.2018 wherein the above mentioned amounts collected by the appellant have been confirmed to be deposited by the assessee to the department under Section 11D of the Central Excise Act, 1944. Learned advocate appearing on behalf of the appellant have assailed the confirmation of excess amount collected by them claiming the same as Central Excise duty under section 11D on the following grounds: (i) It has been contended by learned advocate that the provisions of section 11D of Central Excise Act, 1944 has been amended since 10.5.2008 wherein any person who collects an amount in excess of Central Excise duty

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tions of same are reproduced below: (1) Bharat Petroleum Corpn vs. CCE, Meerut 2002 (146) ELT 646 (Tri-Delhi)]; (2) CCE, Meerut vs. Bharat Petroleum Corpn. Ltd. [2011 272) ELT 654 (SC)]; (3) Hindustan Petroleum Corprn Ltd. vs. CCE Meerut I [2013 (298) ELT 450 (Tri-Delhi)] 2. The learned advocate has also submitted that demand is hit by limitation as the period of limitation has been made applicable to provisions of Section 11D also by Hon ble Madras High Court in its decision in the case of Gem Cables and Conductors Ltd. vs. CC Hyderabad [1994 (72) ELT 848 (Mad)] and since the demand can only be invoked for the normal period of demand as provided under section 11A of Central Excise Act. Most of the amount of demand, in the above mentioned two show cause notices is hit by period of limitation. The learned advocate has also relied upon the decision of this Tribunal in the case of CCE, Jaipur vs. Vinayak Agrotech Ltd. [2012 (284) ELT 237 (Tri-Del)] wherein it has been held that if any amo

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returned thereafter have become due to Central Government as same was illegal collection by the appellant assessee in the name of Central Excise duty. It has also been contested that the credit notes shown by the learned advocate claiming to prove that excess amount collected from customers have been paid by them is actually not the payment of excess amount rather they have authorised the customers to avail cenvat credit of excess amount paid by them to the appellant-assessee depot. Accordingly, the learned DR has contested the order in appeal. 4. We have heard both the sides and have perused the record of appeal. 5. It is admitted fact that appellant assessee depot is primarily an extension of M/s. HPCL and they have admittedly collected certain amount in the name of Central Excise duty in excess of the amount of excise duty paid by them at the time of clearance of various excisable goods to the appellant assessee depot. The basic ground on which the learned advocate has tried to defe

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nder and has collected any amount in excess of the duty assessed or determined and paid on any excisable goods under this Act or the rules made thereunder from the buyer of such goods in any manner as representing duty of excise, shall forthwith pay the amount so collected to the credit of the Central Government. Sub-Section (1A) was added to Section 11D vide Section 81 of the Finance Act, 2008 w.e.f. 10.5.2008 to provide as under: (1A) Every person, who has collected any amount in excess of the duty assessed or determined and paid on any excisable goods or has collected any amount as representing duty of excise on any excisable goods which are wholly exempt or are chargeable to nil rate of duty from any person in any manner, shall forthwith pay the amount so collected to the credit of the Central Government. 6. It can be seen that section 11D(i) as it existed prior to 10.5.2008 provided that any person who is liable to pay duty under the Central Excise Act or rules, made thereunder ne

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eads as under:- place of removal means – (i) A factory or any other place or premises of production or manufacture of the excisable goods; (ii) A warehouse or any other place or premises wherein the excisable goods have been permitted to be deposited without [payment of duty] (iii) A depot, premises of a consignment agent or any other place or premises from where the excisable goods are to be sold after their clearances from the factory. 7. Thus, we find that the original manufacturer assessee had an option to clear his dutiable goods from their depot on payment of duty, however, same has been cleared from the factory gate and just because the depot has taken a separate registration as a first stage dealer does not mean that they are not part and parcel of manufacturer assessee namely M/s. Hindustan Petroleum Corporation Ltd. 8. Thus in view of the above, we feel that provisions of section 11D even prior to 10.5.2008 are applicable in case of appellant assessee and they are legally bou

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sions of section 11D are not relevant to demand the same amount from them. A glance at the manual credit Notes cited by the learned advocate is reproduced below for the convenience of analysis: 10. A perusal of the above credit note makes it clear that a credit of cenvat difference has been given back by them for a period April to June, 2009. In our opinion, it is not a refund of excess amount collected by them rather for lack of evidence the possibility cannot be ruled out we feel that buyer may have taken the credit of these cenvat difference in their books of accounts and might have used them for further passing the cenvat credit to their customers. Seen from this angle, it is not a proper return of the excess collected amount which was in the name of Central Excise duty. Thus, we feel that excess amount collected in the name of Central Excise duty by the appellant-assessee does not stand returned back to their customers and therefore, same need to be deposited with the Central Gove

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2018 (10) TMI 703 – CESTAT CHENNAI – TMI – Restoration of appeal – appellant made a request for adjournment of the appeal, which was posted on 5.5.2016. However, the Tribunal has taken the matter for disposal and passed the exparte order – Held that:- Since the appellant had diligently prosecuted the matter and had taken steps to request for adjournment of the matter, the final order passed disposing the appeal exparte requires to be recalled.
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CENVAT Credit – input services – panthal and shamiana services – services availed in the eve of inauguration of their new building / branch – appellant is engaged in banking and financial services – Held that:- The panthal and shamiana services availed by the appellant is essential for promoti

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not appear before the Tribunal. They had filed an application for adjournment of the appeal by speed post. It was served on the Registry of the Tribunal on 5.5.2016. He has produced the proof of delivery as well as copy of the adjournment letter along with the restoration application. He submitted that though the appellant had requested for adjournment, the Tribunal had not considered the same and therefore the appeal had been decided exparte without considering their contentions. He submitted that the appellants have a good case on merits and therefore the appeal may be restored. He relied upon the decision of the Hon ble Supreme Court in the case of J.K. Synthetics Ltd. Vs. Collector of Central Excise – 1996 (86) ELT 472 (SC). 3. The ld.

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So ordered. 6. Both sides were heard on merits of the appeal also. The ld. counsel Shri J. Shankarraman submitted that the issue is with regard to disallowance of CENVAT credit on panthal and shamiana services. The appellant is engaged in banking and financial services. The input services of panthal and shamiana service was availed by the appellant on the eve of inauguration of their new building / branch. Therefore the service was essential for providing the banking and financial services. The ld. AR submitted that there is no nexus between the input services and the output services of banking and financial services and therefore the authorities below have rightly disallowed the credit. 7. After considering the submissions made by both si

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2018 (10) TMI 764 – CESTAT CHENNAI – TMI – Refund of CENVAT Credit – section 11B of the Central Excise Act, 1944 – rejected for the reason that they have taken CENVAT credit of the amount which has been collected by Canara Bank – appellants have not produced necessary documents to show that the Canara Bank has collected service tax – Held that:- Appellants have replied to the SCN along with necessary documents to support that they have not taken any CENVAT credit and they have borne the tax incidence. However, it is borne out from the records that the authorities below have not considered these documents – the matter requires to be remanded to the adjudicating authority for considering the documents that are produced by the appellants for establishing their case – appeal allowed by way of remand. – ST/41144/2018 – 42522/2018 – Dated:- 4-10-2018 – Ms. Sulekha Beevi C.S., Member (Judicial) For the Appellant : Shri G. Shivakumar, Consultant For the Respondent : Shri L. Nandakumar, AC (AR

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id to Canara Bank. After due process of law, the original authority rejected the refund claim which was upheld by the Commissioner (Appeals). Hence this appeal. 2. On behalf of the appellant, Shri G. Shivakumar, Consultant appeared and argued the matter. He submitted that the only ground raised in the show cause notice is that the appellants have availed CENVAT credit of service tax which was paid by them to Canara Bank. In fact, Canara Bank had collected the service tax by mistake and therefore the appellant being a service provider cannot take CENVAT credit of the said amount. They have not taken any CENVAT credit on the said service tax amount which was collectedly wrongly by Canara Bank. He submitted that they had furnished necessary proof before the adjudicating authority to establish that the appellant has not passed the burden of tax to any other person. He adverted to sub-section (1) of Section 11B and submitted that any person who is eligible to get the excess paid tax can pre

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a letter dated 17.2.2017 informing the appellant that the refund claim has to be rejected for the reason that they have taken CENVAT credit of the amount which has been collected by Canara Bank. The said letter is stated to be a show cause notice and the appellants have replied to the same along with necessary documents to support that they have not taken any CENVAT credit and they have borne the tax incidence. However, it is borne out from the records that the authorities below have not considered these documents. From the submissions made by both sides, I am of the view that the matter requires to be remanded to the adjudicating authority for considering the documents that are produced by the appellants for establishing their case. The impugned order is set aside and the appeal is allowed by way of remand and the adjudicating authority shall grant a further chance to the appellant to produce necessary documents and also for personal hearing. (Dictated and pronounced in open court)

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GST – States – F. 2 (36) Vidhi/2/2018 – Dated:- 4-10-2018 – LAW (LEGISLATIVE DRAFTING) DEPARTMENT (GROUP-II) NOTIFICATION Jaipur, October 04, 2018 No. F. 2 (36) Vidhi/2/2018 .- In pursuance of clause (3) of article 348 of the Constitution of India, the Governor is pleased to authorise the publication in the Rajasthan Gazette of the following translation in the English Language of Rajasthan Maal aur Seva Kar (Sanshodhan) Adhiniyam, 2018 (2018 Ka Adhiniyam Sankhyank 23) :- (Authorised English Translation) THE RAJASTHAN GOODS AND SERVICES TAX (AMENDMENT) ACT, 2018 (Act No. 23 of 2018) [Received the assent of the Governor on the 1st day of October, 2018] An Act to amend the Rajasthan Goods and Services Tax Act, 2017. Be it enacted by the Rajasthan State Legislature in the Sixty-ninth Year of the Republic of India, as follows:- 1. Short title and commencement.- (1) This Act may be called the Rajasthan Goods and Services Tax (Amendment) Act, 2018. (2) Save as otherwise provided, the provisi

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he following sub-clause shall be substituted, namely:- (h) activities of a race club including by way of totalisator or a licence to book maker or activities of a licensed book maker in such club; and ; (d) the existing clause (18) shall be deleted; (e) in clause (35), for the existing expression clause (c) , the expression clause (b) shall be substituted; (f) in sub-clause (f) of clause (69), after the existing expression article 371 and before the existing expression "of the Constitution", the expression and article 371J shall be inserted; and (g) in clause (102), the following Explanation shall be added, namely:- "Explanation.-For the removal of doubts, it is hereby clarified that the expression services includes facilitating or arranging transactions in securities;". 3. Amendment of section 7, Rajasthan Act No. 9 of 2017.- In section 7 of the principal Act, with effect from the 1st day of July, 2017,- (a) in sub-section (1) – (i) in clause (b), after the existin

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an Act No. 9 of 2017.- In section 9 of the principal Act, for sub-section (4), the following sub-section shall be substituted, namely:- (4) The Government may, on the recommendations of the Council, by notification, specify a class of registered persons who shall, in respect of supply of specified categories of goods or services or both received from an unregistered supplier, pay the tax on reverse charge basis as the recipient of such supply of goods or services or both, and all the provisions of this Act shall apply to such recipient as if he is the person liable for paying the tax in relation to such supply of goods or services or both. . 5. Amendment of section 10, Rajasthan Act No. 9 of 2017.- In section 10 of the principal Act,- (a) in sub-section (1) – (i) for the existing expression in lieu of the tax payable by him, an amount calculated at such rate , the expression in lieu of the tax payable by him under sub-section (1) of section 9, an amount of tax calculated at such rate s

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t, the existing expression "sub-section (1) of" shall be deleted. 7. Amendment of section 13, Rajasthan Act No. 9 of 2017.- In sub-section (2) of section 13 of the principal Act, the existing expression "sub-section (2) of" occurring in clauses (a) and (b) shall be deleted. 8. Amendment of section 16, Rajasthan Act No. 9 of 2017.- In sub-section (2) of section 16 of the principal Act,- (a) in clause (b), for the existing explanation, the following explanation shall be substituted, namely:- Explanation.-For the purposes of this clause, it shall be deemed that the registered person has received the goods or, as the case may be, services- (i) where the goods are delivered by the supplier to a recipient or any other person on the direction of such registered person, whether acting as an agent or otherwise, before or during movement of goods, either by way of transfer of documents of title to goods or otherwise; (ii) where the services are provided by the supplier to any

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of passengers; or (C) imparting training on driving such motor vehicles; (aa) vessels and aircraft except when they are used- (i) for making the following taxable supplies, namely:- (A) further supply of such vessels or aircraft; or (B) transportation of passengers; or (C) imparting training on navigating such vessels; or (D) imparting training on flying such aircraft; (ii) for transportation of goods; (ab) services of general insurance, servicing, repair and maintenance in so far as they relate to motor vehicles, vessels or aircraft referred to in clause (a) or clause (aa): Provided that the input tax credit in respect of such services shall be available- (i) where the motor vehicles, vessels or aircraft referred to in clause (a) or clause (aa) are used for the purposes specified therein; (ii) where received by a taxable person engaged- (I) in the manufacture of such motor vehicles, vessels or aircraft; or (II) in the supply of general insurance services in respect of such motor vehi

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bligatory for an employer to provide the same to its employees under any law for the time being in force. . 10. Amendment of section 20, Rajasthan Act No. 9 of 2017.- In clause (c) of explanation to section 20 of the principal Act, for the existing expression under entry 84 , the expression under entries 84 and 92A shall be substituted. 11. Amendment of section 22, Rajasthan Act No. 9 of 2017.- In section 22 of the principal Act,- (a) in proviso to sub-section (1), for the existing punctuation mark "." appearing at the end, the punctuation mark ":" shall be substituted and after the proviso so amended, the following proviso shall be added, namely:- Provided further that where such person makes taxable supplies of goods or services or both from a special category State in respect of which the Central Government has enhanced the aggregate turnover referred to in the first proviso, he shall be liable to be registered if his aggregate turnover in a financial year exceed

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ovided further that a person having a unit, as defined in the Special Economic Zones Act, 2005 (Central Act No. 28 of 2005), in a Special Economic Zone or being a Special Economic Zone developer shall have to apply for a separate registration, as distinct from his place of business located outside the Special Economic Zone in the State."; and (b) for the existing proviso to sub-section (2), the following proviso shall be substituted, namely:- "Provided that a person having multiple places of business in the State may be granted a separate registration for each such place of business, subject to such conditions as may be prescribed.". 14. Amendment of section 29, Rajasthan Act No. 9 of 2017.- In section 29 of the principal Act,- (a) in heading, after the existing word Cancellation and before the word "of", the expression or suspension shall be inserted; (b) in clause (c) of sub-section (1), for the existing punctuation mark ".", the punctuation mark &q

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e substituted; and (ii) for the existing expression a credit note , the expression one or more credit notes for supplies made in a financial year shall be substituted; and (b) in sub-section (3),- (i) for the existing expression Where a tax invoice has , the expression Where one or more tax invoices have shall be substituted; and (ii) for the existing expression a debit note , the expression one or more debit notes for supplies made in a financial year shall be substituted. 16. Amendment of section 35, Rajasthan Act No. 9 of 2017.- In sub-section (5) of section 35 of the principal Act, for the existing punctuation mark ".", the punctuation mark ":" shall be substituted and after the sub-section (5) so amended, the following proviso shall be added, namely:- Provided that nothing contained in this sub-section shall apply to any department of the Central Government or a State Government or a local authority, whose books of account are subject to audit by the Comptrolle

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uch conditions and safeguards as may be specified therein. ; (b) in sub-section (7), for the existing punctuation mark "." appearing at the end, the punctuation mark ":" shall be substituted and after the sub-section (7) so amended, the following proviso shall be added, namely:- Provided that the Government may, on the recommendations of the Council, notify certain classes of registered persons who shall pay to the Government the tax due or part thereof as per the return on or before the last date on which he is required to furnish such return, subject to such conditions and safeguards as may be specified therein. ; and (c) in sub-section (9),- (i) for the existing expression "in the return to be furnished for the month or quarter during which such omission or incorrect particulars are noticed", the expression "in such form and manner as may be prescribed" shall be substituted; and (ii) in proviso, for the existing expression the end of the finan

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t tax credit by the recipient shall be such as may be prescribed. (4) The procedure for availing input tax credit in respect of outward supplies not furnished under sub-section (3) shall be such as may be prescribed and such procedure may include the maximum amount of the input tax credit which can be so availed, not exceeding twenty per cent of the input tax credit available, on the basis of details furnished by the suppliers under the said sub-section. (5) The amount of tax specified in the outward supplies for which the details have been furnished by the supplier under sub-section (3) shall be deemed to be the tax payable by him under the provisions of the Act. (6) The supplier and the recipient of a supply shall be jointly and severally liable to pay tax or to pay the input tax credit availed, as the case may be, in relation to outward supplies for which the details have been furnished under sub-section (3) or sub-section (4) but return thereof has not been furnished. (7) For the p

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n section 49 of the principal Act,- (a) in sub-section (2), for the existing expression section 41 , the expression section 41 or section 43A shall be substituted; and (b) in sub-section (5),- (i) in clause (c), for the existing punctuation mark ";", the punctuation mark ":" shall be substituted and after the clause (c) so amended, the following proviso shall be added, namely:- Provided that the input tax credit on account of State tax shall be utilised towards payment of integrated tax only where the balance of the input tax credit on account of central tax is not available for payment of integrated tax; ; and (ii) in clause (d), for the existing punctuation mark ";", the punctuation mark ":" shall be substituted and after the clause (d) so amended, the following proviso shall be added, namely:- Provided that the input tax credit on account of Union territory tax shall be utilised towards payment of integrated tax only where the balance of the i

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account of integrated tax, central tax, State tax or Union territory tax, as the case may be, towards payment of any such tax. . 22. Amendment of section 52, Rajasthan Act No. 9 of 2017.- In sub-section (9) of section 52 of the principal Act, for the existing expression section 37 , the expression section 37 or section 39 shall be substituted. 23. Amendment of section 54, Rajasthan Act No. 9 of 2017.- In section 54 of the principal Act,- (a) in clause (a) of sub-section (8), for the existing expressions on zero-rated supplies and "such zero-rated supplies", the expressions "on export" and "such exports" shall respectively be substituted; and (b) in clause (2) of the Explanation,- (i) in item (i) of sub-clause (c), after the existing expression foreign exchange and before the existing expression ", where the supply", the expression or in Indian rupees wherever permitted by the Reserve Bank of India shall be inserted; and (ii) for existing sub-clau

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ndment of section 112, Rajasthan Act No. 9 of 2017.- In clause (b) of sub-section (8) of section 112 of the principal Act, after the existing expression arising from the said order, and before the existing expression "in relation to", the expression subject to a maximum of fifty crore rupees shall be inserted. 27. Amendment of section 129, Rajasthan Act No. 9 of 2017.- In sub-section (6) of section 129 of the principal Act, for the existing expression seven days wherever occurring, the expression fourteen days shall be substituted. 28. Amendment of section 143, Rajasthan Act No. 9 of 2017.- In proviso to clause (b) of sub-section (1) of section 143 of the principal Act, for the existing punctuation mark "." appearing at the end, the punctuation mark ":" shall be substituted and after the proviso so amended, the following proviso shall be added, namely:- Provided further that the period of one year and three years may, on sufficient cause being shown, be ex

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2018 (10) TMI 1150 – KERALA HIGH COURT – TMI – Validity of assessment order – credit of tax paid – petitioner did not produce books of accounts when asked for – Held that:- It only serves the ends of justice if the petitioner suffers any order after a full opportunity. The opportunity he earlier had may have not been utilised for the petitioner laboured under an impression that Ext.P2 appellate order is conclusive and the assessment authority's demand for production of records travels beyond his remit as fixed in the appellate order.
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There is an element of ambiguity in the appellate order. In one breath, it accepts the petitioner's entire contention. In the other breath, it allows the assessing authority to examine the petitioner's p

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but observed as follows: As submitted by the learned Chartered Accountant, the contextual meaning has to be considered. It is also seen that none of the submissions on the above line have been taken before the assessing authority. The assessing authority is therefore directed to verify the above submissions. Once again and if the sale has suffered tax in the hands of the appellant, the assessing authority is directed to grant credit for the tax paid on the purchase by the appellant. 2. As the matter stood remanded, the assessing authority issued a notice to the petitioner requiring it to produce books of account. The petitioner did not produce. Instead it took the plea of limitation. Therefore, the assessing authority, for want of records,

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ent order for no valid reason except for the petitioner's conceding belatedly before this Court. She has also submitted that the petitioner has an efficacious alternative remedy. 5. Appealing as the Government Pleader's submissions is, I do not deem it desirable to relegate the petitioner to an appellate forum. After all, under Article 226 of the Constitution of India, it is a self-imposed limitation and, under justifiable circumstances, this Court can as well, disregard the plea of alternative remedy. I reckon, this is one such instance, where there is no lis to be adjudicated given the petitioner's concession. 6. It only serves the ends of justice if the petitioner suffers any order after a full opportunity. The opportunity he

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M/s. K.L. JOHAR AND COMPANY AND MS. GENERAL TRANSPORT Versus 1 ASST. STATE TAX OFFICER STATE GOODS & SERVICES TAX DEPARTMENT, ALUVA, STATE TAX OFFICER STATE GOODS & SERVICES TAX DEPARTMENT, ALUVA, THE SOUTH INDIAN BANK LTD., AND STATE OF KERALA REPRESENTED BY SECRETARY TO GOVERNMENT, THIRUVANANTHAPURAM – 2018 (10) TMI 1188 – KERALA HIGH COURT – TMI – Request for withdrawal of petition – alternate remedy – petitioner concedes that in the face of an alternate remedy, the petitioner cannot persist with this writ petition – Held that:- The petitioner can approach the Appellate Authority by filing a statutory appeal against the Ext.P8. As the order was passed on 06.02.2018, indeed the appeal may face the problem of limitation – petition disposed

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the petitioner's counsel submits that when the State Tax Officer passed the Ext.P8, the appellate mechanism was not in place. He however admits that, now, the Appellate Authority has become functional. 4. Under these circumstances, the petitioner's counsel wants this Court to permit the petitioner to withdraw this writ petition and approach the Appellate Authority. For that, the learned counsel seeks the Court's indulgence to have the delay condoned because the petitioner, according to him, bona fide pursued this writ petition. 5. The learned Government Pleader, on the other hand, submits that the Appellate Authority had been functioning even by the time the Ext.P8 was passed. At any rate, she submits that the petitioner can app

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NOUSHAD ALLAKKAT Versus THE STATE TAX OFFICER (WC) STATE GST DEPARTMENT, MANJERI, THE ASST. TAX OFFICER SQUAD NO. VII, STATE GST DEPARTMENT, PALAKKAD, STATE TAX OFFICER SQUAD NO. VII, STATE GST DEPARTMENT, PALAKKAD, STATE OF KERALA REPRESENTED BY ITS SECRETARY, TAXES DEPARTMENT, THIRUVANANTHAPURAM AND THE MANAGER INDIAN BANK, MALAPPURAM BRANCH, MALAPPURAM – 2018 (10) TMI 1189 – KERALA HIGH COURT – TMI – Invocation of Bank guarantee by respondents before prosecuting the appeal by petitioner – petitioner's case is that if the respondents invoke the bank guarantee, the petitioner's right to statutory remedy becomes illusory – Held that:- Indeed, in terms of Section 107 of the Act, read with Rule 108 of the Goods and Services Tax Rules; to appe

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r Section 129 of the Act, for the supplier's failure to collect IGST . The petitioner has got the goods released on his furnishing the bank guarantee, though. 2. At any rate, faced with adverse orders, the petitioner wants to file a statutory appeal. But before it can prosecute the appeal, the 4th respondent threatens, the petitioner apprehends, to invoke the bank guarantee. So it has filed this writ petition. 3. According to the petitioner's counsel, the appellate forum itself was very recently created, and still the procedural mechanism has not yet been fully put in place. In the meanwhile, if the respondents invoke the bank guarantee, the petitioner's right to statutory remedy becomes illusory. 4. The petitioner also seeks an

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has submitted that the petitioner has an efficacious alternative remedy and, so, it can approach the appellate authority. 7. Heard Sri Hariharan Nair, the learned counsel for the petitioner, and Smt.Jasmine, the learned Government Pleader appearing for the respondents. 8. Indeed, in terms of Section 107 of the Act, read with Rule 108 of the Goods and Services Tax Rules; to appeal, the petitioner has three months' time from the date of Ext.P7 impugned order. But it may be inequitable for the respondent authorities to invoke the bank guarantee before the limitation to appeal ends. 9. I, therefore, dispose of this Writ Petition holding that the respondent will not invoke the bank guarantee for three months. In the meanwhile, the petitioner

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2018 (10) TMI 1281 – PUNJAB AND HARYANA HIGH COURT – TMI – Maintainability of appeal – monetary amount involved in the appeal – Held that:- In the present appeal the amount involved is ₹ 25,76,454/-. In terms of the Instructions issued by the Central Board of Indirect Taxes & Customs dated 11.07.2018, the monetary limit fixed for filing appeals in the High Court stands raised to ₹ 50 lakhs, which is applicable even in pending cases.
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As the amount of tax involved in the present appeal is less than ₹ 50 lakhs, the same may be permitted to be withdrawn. – STA No.16 of 2018 (O&M) Dated:- 4-10-2018 – MR RAJESH BINDAL AND MR AMIT RAWAL, JJ. For The Appellant : Mr. Sharan Sethi, Advocate ORDER Rajesh Bindal, J. This is an

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2018 (11) TMI 1347 – AUTHORITY FOR ADVANCE RULING, GOA – 2018 (19) G. S. T. L. 700 (A. A. R. – GST) – Levy of GST – One time concession fees charged by the appellant in respect of their property at Anjuna, Goa which is given to M/s. Myrayash Hotels Pvt. Ltd. for a long term lease of 60 years for development of infrastructure for financial business on Private Investment mode on DBFOT basis providing exclusive right, license and authority to construct, operate and maintain the project.
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Ruling:- The service provided by the applicant in the instant matter, is not falling under the criterion mentioned at Sr. No. 41 of the Notification No. 12/2017-Centra1 Tax (Rate), dated 28.06.2017 as amended by the Notification No. 32/2017-Centra1 Tax (Rate), dated 13.10.2017. Therefore, the applicant is not entitled for the benefits of the said notification and the activity of long term lease is liable for levy of GST. – GOA/GAAR/4 of 2018-19 Dated:- 4-10-2018 – ASHOK V. RANE AND S.K. SINHA, MEMB

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under the provisions of GST Act, 2017 having GSTIN 30AAACG7220K1ZO. The applicant has executed Concession Agreement for Renovation/Development of their Anjuna property through Private Investment Mode, with Myrayash Hotels Pvt. Ltd, Mumbai on 9th December, 2016, given the exclusive right, license and authority to construct, operate and maintain the project for a period of 30 years extendable by further period of 30 years totalling 60 years. 3. The applicant has collected amount of ₹ 25,20,00,000/- from M/s. Myrayash Hotels Pvt. Ltd., Mumbai in the name of onetime upfront Concession Fees for a term of 60 years @ ₹ 42,00,000/- per annum for use of their Anjuna Property through Private Investment mode on DBFOT Basis (Design Build, Finance, Operate and Transfer). 4. During the hearing, it was submitted by the authorised representative of the applicant that the one-time upfront concession fee charged by the applicant, an undertaking of Government of Goa, for lease of 60

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6. The applicant submitted that the conditions for claiming exemption under this entry are as follows : (a) The exemption is for upfront payment; (b) The lease shall be for a period of 30 years or more; (c) The lease shall be for industrial plots for development of infrastructure for financial business; (d) The lease shall be granted by State Government Industrial Development Corporation or State Government undertaking by any other entity having 50% or more ownership of Central Government, State Government, Union territory; 7. They submitted that in their case, all the four conditions are satisfied which will be evident from their following submissions : (i) As per the concession agreement dated 9-12-2016 and letter No. GTDC/Hotel Properties/2012-13/3687, dated 24-12-2016 both of Goa Tourism Development Corporation Ltd., the upfront concession fees payable is ₹ 2,80,00,000/- (Rupees Twenty-Eight Crore) as specified in Clause No. 4.1.3 of the agreement and above said le

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s supplied by them. The applicant has given plot of land on lease to M/s. Myrayash Hotel Pvt. Ltd. Since the plot is used for industrial purpose, the transaction is the lease for industrial plot. (iv) The lease right has been assigned by M/s. GTDC which is a State Government undertaking. As per the notification, the lease can be granted either by Industrial Development Corporation or by the State Government undertaking. In their case, GTDC is a State Government undertaking. Therefore, the fourth condition is also satisfied. It is seen that, the applicant has signed concession agreement for DBFOT basis (Design, Build, Finance, Operate and Transfer) and received up front concession fee of ₹ 25,20,00,000/- for a period of 30 years, extendable by further period of 30 years totaling 60 years. In the instance case M/s. Goa Tourism Development Corporation, undertaking having more than 50% ownership of the State Government has leased property to M/s. Myrayash Hotel Pvt. Ltd., for develop

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entral Government, State Government, union territory . In the matter of instant case it is on record that the service provider is an undertaking of Goa Government. (b) The lease shall be for a period of 30 years or more; in the present matter the lease is made for 60 years. (c) The long term lease shall be in respect of industrial plots or plots for development of infrastructure for financial business, located in any industrial or financial business area. The said Notification or GST Act, 2017 does not define the industrial or financial business area , therefore, this bench is inclined to borrow the definition of industrial or financial business area from any other statute. As per sub-section (g) of Section 2 of the Goa Industrial Development Act, 1965 the Industrial Area means – any area declared to be an industrial area by the State Government by Notification in the Official Gazette, which is to be developed and where industries are to be accommodated . Thus, for considering any area

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ed by Notification No. 32/2017-Central Tax (Rate), dated 13-10-2017 is not available to the applicant. 10. Recently, the Hon ble High Court Bombay has dealt with the identical issue in the matter of Writ Petition No. 12194 of 2017 [2018 (12) G.S.T.L. 232 (Bom.) in the case of Builders Association of Navi Mumbai and Neelsidhi Realties v. Union of India and Others. The issue before their lordship was to decide whether GST can be levied and collected on the long term lease granted by City Industrial and Development Corporation of Maharashtra Ltd. (CIDCO) for 60 years. While dealing with the issue the Hon ble High Court has observed that lease premium amount is a consideration against supply of service and is subject to Goods and Services Tax. 11. Reliance may also be place on the decision of Hon ble High Court Allahabad in the case of Greater Noida Industrial Development Authority v. Commissioner of Customs, Central Excise [2015 (40) S.T.R. 95 (All.)], wherein the Hon ble High C

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e liable to tax under the provisions of this Act . 13. From the statute of the provisions of Section 142(10) ibid it can be easily secreted that if the contract is made in Service Tax regime and the service is provided in the GST regime or the service is in the nature of continuous supply of service, the same shall be liable to tax under the GST Act. In the instant matter, though the consideration against service is received prior to the appointed day and the contract was made in service tax regime, it cannot be said that the supply of service is completed. It can easily be understand that the consideration is received against the services to be provided for next 60 years i.e. the supply of service is in the nature of continuous supply of service. Therefore, the same is liable to be taxed under GST Act. Advance Ruling under Section 98 of the CGST/GGST Act, 2017 14. The service provided by the applicant in the instant matter, is not falling under the criterion mentioned at Sr.

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GST – States – 5027/CSTUK/GST-Vidhi Section/2018-19/ON-04 – Dated:- 4-10-2018 – Commissioner State Tax Uttarakhand ORDER October 04, 2018 Subject : Extension of time limit for submitting the declaration in FORM GST TRAN-1 under rule 117(1A) of the Uttarakhand Goods and Service Tax Rules, 2017 in certain cases. No. 5027/CSTUK/GST-Vidhi Section/2018-19/ON-04 – In exercise of the powers conferred by sub-rule (1A) of rule 117 of the Uttarakhand Goods and Services Tax Rules 2017 read with section 16

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2018 (10) TMI 1648 – ALLAHABAD HIGH COURT – TMI – Seizure of goods – inter-state transfer – irregularities found in the documents accompanying the goods – Held that:- Learned standing counsel prays for is granted one month's to file counter affidavit.
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List this matter on 12.11.2018. – WRIT TAX No. 1328 of 2018 Dated:- 4-10-2018 – Mr. Bharati Sapru And Mr. Salil Kumar Rai, JJ. For the Appellant : Naveen Chandra Gupta For the Respondent : A.S.G.I.,C.S.C. ORDER Heard Shri N.C. Gupta, learne

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Goods and Services Tax – GST – CONCEPT & STATUS (Updated as on 01st October 2018) – TMI Updates – Highlights

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Goods and Services Tax – Construction Services – Construction of factory for Madhepura Electric Locomotive Pvt. Ltd. which subsidiary of Indian Railways – The nature of activity undertaking by the app

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Goods and Services Tax – Started By: – Bhavana Phulsundar – Dated:- 3-10-2018 Last Replied Date:- 5-10-2018 – SirWe paid IGST on Import. Ideally i should claim IGST as input in a month of bill of Entry i e Oct 17. I Wrongly claim it in the month of Sept 17. I filed return Till Sept 17. Oct Return is still to be submitted. What remedy is available for. Should i adjust it in next month Credit (Claim that much less credit) or can i claim full credit and reverse it below in reversal. – Reply By Yas

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Goods and Services Tax – Started By: – CS.RAJESH AUDITHYAN – Dated:- 3-10-2018 Last Replied Date:- 5-10-2018 – Dear sirs as per GST notification 14/2018 there was NIL GST on air/ocean Exports freight till 30.09.18 what is the status after 01.10.18 ? still NIL GST or any amendment took place ? kindly update if possible with relevant notfn. number / dt pl With rgds Rajesh A – Reply By Yash Jain – The Reply = Dear Sir, The captioned notification was with sunset clause No further relaxation will be

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Goods and Services Tax – Started By: – Durga Prasad – Dated:- 3-10-2018 Last Replied Date:- 5-10-2018 – Dear Sir,Please Explain TDS Applicability for the Following Queries1. Advance Amount Which is paid prior to 1 Oct for a Contract pertaining to on or after 1 Oct2. Amount paid by way of Book Adjustments3. If Out of Consideration say 10 Lakhs 9 Lakhs was received before 1 oct and balance was received on or after 1 Oct. Whether TDS shall be deducted on the 1 Lakh if Yes, then why we are deducting the TDS though it doesn't exceed threshold limit. – Reply By DR.MARIAPPAN GOVINDARAJAN – The Reply = TDS under GST is to be done by only Government authorities. Whether you are coming under this category? – Reply By CA Karan – The Reply = GST c

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Goods and Services Tax – Started By: – yash raletta – Dated:- 3-10-2018 Last Replied Date:- 5-10-2018 – GST is an indirect tax levied by the government on the supply of goods and services. This tax law is not limited to any particular state and the main point is it removes the cascading effect. Want to know more do visit GST. – Reply By DR.MARIAPPAN GOVINDARAJAN – The Reply = The friends in this forum have already knowledge in GST. They are not new to them. Please avoid such postings. – Reply B

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Goods and Services Tax – GST – Dated:- 3-10-2018 – GOODS AND SERVICE TAX (GST) CONCEPT & STATUS CENTRAL BOARD OF INDIRECT TAXES AND CUSTOMS (CBIC) DEPARTMENT OF REVENUE MINISTRY OF FINANCE GOVERNMENT OF INDIA AS ON 1st OCTOBER, 2018 The uniform system of taxation, which, with a few exceptions of no great consequence, takes place in all the different parts of the United Kingdom of Great Britain, leaves the interior commerce of the country, the inland and coasting trade, almost entirely free. The inland trade is almost perfectly free, and the greater part of goods may be carried from one end of the kingdom to the other, without requiring any permit or let-pass, without being subject to question, visit, or examination from the revenue officers. ……This freedom of interior commerce, the effect of uniformity of the system of taxation, is perhaps one of the principal causes of the prosperity of Great Britain; every great country being necessarily the best and most extensive

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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to ₹ 20 lakhs, making inter State supplies; Suppliers of services, having turnover upto ₹ 20 lakhs, making supplies through e-commerce platforms. (xi) The reverse charge mechanism under sub-section (4) of section 9 of the CGST Act, 2017 and under sub-section (4) of section 5 of the IGST Act, 2017 has been suspended till 30.09.2019. (xii) There shall be no requirement on payment of tax on advance received for supply of goods by all taxpayers. (xiii) Supply from GTA to unregistered persons has been exempted from tax. (xiv) TDS/TCS provisions to be implemented from 01.10.2018. (xv) E-Wallet Scheme shall be introduced for exporters from 01.04.2019 and till then relief for exporters shall be given in form of broadly existing practice. (xvi) All taxpayers are required to file return FORM GSTR-3B & pay tax on monthly basis. (xvii) Taxpayers with turnover upto ₹ 1.5 Cr are required to file information in FORM GSTR-1 on a quarterly basis. Other taxpayers would have to file

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istered person under Tax head instead of Fee head. (xxi) From October 2017 onwards, the amount of late fee for late filing of GSTR-3B payable by a registered person is as follows: whose tax liability for that month was NIL will be ₹ 20/- per day instead of ₹ 200/- per day; whose tax liability for that month was not NIL will be ₹ 50/- per day instead of ₹ 200/- per day. (xxi) Facility has been introduced for manual filing of refund application. (xxii) Supply of services to Nepal and Bhutan shall be exempted from GST even if payment has not been received in foreign convertible currency – such suppliers shall be eligible for input tax credit. (xxiii) Centralized UIN shall be issued to every Foreign Diplomatic Mission / UN Organization by the Central Government. (xxiv) Rate of interest on delayed payments and delayed refund has been recommended. (xxv) Migration window was opened one more time till 31.08.2018. (xxvi) A Group of Ministers has been constituted to look

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rvices Tax (Amendment) Act, 2018, the Union Territory Goods and Services Tax (Amendment) Act, 2018 and the Goods and Services Tax (Compensation to States) Amendment Act, 2018, respectively. The major amendments brought about by these Acts are as below: (i) Upper limit of turnover for opting for composition scheme to be raised from ₹ 1 crore to ₹ 1.5 crore. Present limit of turnover can now be raised on the recommendations of the Council. (ii) Composition dealers to be allowed to supply services (other than restaurant services), for up to a value not exceeding 10% of turnover in the preceding financial year, or ₹ 5 lakhs, whichever is higher. (iii) Levy of GST on reverse charge mechanism on receipt of supplies from unregistered suppliers, to be applicable to only specified goods in case of certain notified classes of registered persons, on the recommendations of the GST Council. (iv) The threshold exemption limit for registration in the States of Assam, Arunachal Prade

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widened, and it would now be made available in respect of the following: (a) Most of the activities or transactions specified in Schedule III; (b) Motor vehicles for transportation of persons having seating capacity of more than thirteen (including driver), vessels and aircraft (c) Services of general insurance, repair and maintenance in respect of motor vehicles, vessels and aircraft on which credit is available; and (d) Goods or services which are obligatory for an employer to provide to its employees, under any law for the time being in force (x) Registered persons may issue consolidated credit/debit notes in respect of multiple invoices issued in a Financial Year. (xi) Amount of pre-deposit payable for filing of appeal before the Appellate Authority and the Appellate Tribunal to be capped at ₹ 25 Crores and ₹ 50 Crores respectively. (xii) Commissioner to be empowered to extend the time limit for return of inputs and capital sent on job work, upto a period of one year an

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il, which remains unutilised in the Compensation Fund, at any point of time in any financial year during the transition period shall be transferred to the Consolidated Fund of India as the share of Centre, and the balance fifty per cent. shall be distributed amongst the States in the ratio of their base year revenue. (xix) In case of shortfall in the amount collected in the Fund against the requirement of compensation to be released for any two months period, fifty per cent. of the same, but not exceeding the total amount transferred to the Centre and the States as recommended by the Council, shall be recovered from the Centre and the balance fifty per cent. from the States in the ratio of their base year revenue. In order to ensure that the changes in the Centre and the State GST laws are brought into force simultaneously, these amendments will be made effective from a date to be notified in the future. 9.6 GST Council in its 28th meeting held on 21.07.2018 in New Delhi, also approved

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on which a taxpayer would be shown and would be required to fill in the return would depend on his profile. (v) NIL return filers (no purchase and no sale) shall be given facility to file return by sending SMS. (vi) There shall be quarterly filing of return for the small taxpayers having turnover below ₹ 5 Cr as an optional facility. Quarterly return shall be similar to main return with monthly payment facility but for two kinds of registered persons – small traders making only B2C supply or making B2B + B2C supply. For such taxpayers, simplified returns have been designed called Sahaj and Sugam. In these returns details of information required to be filled is lesser than that in the regular return. (vii) The new return design provides facility for amendment of invoice and also other details filed in the return. Amendment shall be carried out by filing of a return called amendment return. Payment would be allowed to be made through the amendment return as it will help save intere

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is a unique contribution of India in the field of VAT. The IGST Model envisages that Centre would levy IGST (Integrated Goods and Service Tax) which would be CGST plus SGST on all inter-State supply of goods or services or both. The inter-State supplier will pay IGST on value addition after adjusting available credit of IGST, CGST, and SGST on his purchases. The Exporting State will transfer to the Centre the credit of SGST used in payment of IGST. The person based in the destination State will claim credit of IGST while discharging his output tax liability in his own State. The Centre will transfer to the importing State the credit of IGST used in payment of SGST. The relevant information will also be submitted to the Central Agency which will act as a clearing house mechanism, verify the claims and inform the respective governments to transfer the funds. The major advantages of IGST Model are: (i) Maintenance of uninterrupted ITC chain on inter-State transactions. (ii) No upfront pa

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Compensation to States: The Goods and Services Tax (Compensation to States) Act, 2017 provides for compensation to the States for the loss of revenue arising on account of implementation of the goods and services tax. Compensation will be provided to a State for a period of five years from the date on which the State brings its SGST Act into force. For the purpose of calculating the compensation amount in any financial year, year 2015-16 will be assumed to be the base year, for calculating the revenue to be protected. The growth rate of revenue for a State during the five-year period is assumed be 14% per annum. The base year tax revenue consists of the states tax revenues from: (i) state Value Added Tax (VAT), (ii) central sales tax, (iii) entry tax, octroi, local body tax, (iv) taxes on luxuries, (v) taxes on advertisements, etc. However, any revenue among these taxes arising related to supply of alcohol for human consumption, and five specified petroleum products, will not be accou

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and the prices of the commodities. This happened in spite of the availability of the tax credit. This was happening because the supplier was not passing on the benefit to the consumer and thereby indulging in illegal profiteering. Any reduction in rate of tax or the benefit of increased input tax credit should have been passed on to the recipient by way of commensurate reduction in prices. 10.6.1 National Anti-profiteering Authority (NAPA) has been constituted under GST by the Central Government to examine the complaints of non-passing the benefit of reduced tax incidence. The Authority shall cease to exist after the expiry of two years from the date on which the Chairman enters upon his office unless the Council recommends otherwise. 10.6.2 The Authority may determine whether any reduction in the rate of tax or the benefit of input tax credit has been passed on to the recipient by way of commensurate reduction in prices. It can order reduction in prices, imposition of penalty, cancel

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in inter-State supplies of goods. 10.9 Composition Scheme: An optional composition scheme (i.e. to pay tax at a flat rate on turnover without credits) is available to small taxpayers (including to manufacturers other than specified category of manufacturers and service providers) having an annual turnover of up to ₹ 1 crore (Rs. 75 lakh for special category States (except J&K and Uttarakhand) enumerated in article 279A of the Constitution). This limit has been raised to ₹ 1.5 crore after necessary amendments in the GST Acts. The amendment shall be effective from a date to be notified in the future. 10.10 Zero rated Supplies: Export of goods and services are zero rated. Supplies to SEZs developers and SEZ units are also zero-rated. The benefit of zero rating can be taken either with payment of integrated tax, or without payment of integrated tax under bond or Letter of Undertaking. 10.11 Cross-utilization of ITC: IGST credit can be used for payment of all taxes. CGST cr

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funds would be carried out on the basis of information contained in the returns filed by the taxpayers. 10.13 Modes of Payment: Various modes of payment of tax available to the taxpayer including internet banking, debit/ credit card and National Electronic Funds Transfer (NEFT) / Real Time Gross Settlement (RTGS). 10.14 Tax Deduction at Source: Obligation on certain persons including government departments, local authorities and government agencies, who are recipients of supply, to deduct tax at the rate of 1% from the payment made or credited to the supplier where total value of supply, under a contract, exceeds two lakh and fifty thousand rupees. The provision for TDS has been operationalized wef 01st October 2018. 10.15 Refunds: Refund of tax to be sought by taxpayer or by any other person who has borne the incidence of tax within two years from the relevant date. Refund of unutilized ITC also available in zero rated supplies and inverted tax structure. 10. 16 Tax Collection at Sour

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illful mis-statement. 10.18 Recovery of Arrears: Arrears of tax to be recovered using various modes including detaining and sale of goods, movable and immovable property of defaulting taxable person. 10.19 Appellate Tribunal: Goods and Services Tax Appellate Tribunal would be constituted by the Central Government for hearing appeals against the orders passed by the Appellate Authority or the Revisional Authority. States would adopt the provisions relating to Tribunal in respective SGST Act. 10.20 Advance Ruling Authority: Advance Ruling Authority would be constituted by States in order to enable the taxpayer to seek a binding clarity on taxation matters from the department. Centre would adopt such authority under CGST Act. 10.21 Transitional Provisions: Elaborate transitional provisions have been provided for smooth transition of existing taxpayers to GST regime. 10.21 Subsuming of taxes, duties etc.: Among the taxes and duties levied and collected by the Union, Central Excise duty, Du

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their respective SGST Acts. The economic integration of India was completed on 8th July, 2017 when the State of J&K also passed the SGST Act and the Central Government also subsequently extended the CGST Act to J&K. 11.2. In its 28th meeting held in New Delhi on 21.07.2018, the GST Council recommended certain amendments in the CGST Act, IGST Act, UTGST Act and the GST (Compensation to States) Act. These amendments have been passed by Parliament and have been enacted, after receiving the assent of the Hon ble President of India on 29.08.2018, as the Central Goods and Services Tax (Amendment) Act, 2018, the Integrated Goods and Services Tax (Amendment) Act, 2018, the Union Territory Goods and Services Tax (Amendment) Act, 2018 and the Goods and Services Tax (Compensation to States) Amendment Act, 2018, respectively. In order to ensure that the above changes in the Centre and the State GST laws are brought into force simultaneously, these amendments will be made effective from a

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T and IGST law, which will be exclusive domain of the Centre. This apart, the CBIC has prepared itself for meeting the implementation challenges, which are quite formidable. The number of taxpayers has gone up significantly. The existing IT infrastructure of CBIC has been suitably scaled up to handle such large volumes of data. Based on the legal provisions and procedure for GST, the content of work-flow software such as ACES (Automated Central Excise & Service Tax) would require re-engineering. The name of IT project of CBIC under GST is SAKSHAM involving a total project value of ₹ 2,256 crores. 12.2 Augmentation of human resources would be necessary to handle large taxpayers base in GST scattered across the length and breadth of the country. Capacity building, particularly in the field of Accountancy and Information Technology for the departmental officers has to be taken up in a big way. A massive four-tier training programme has been conducted under the leadership of NACI

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he Government. 13. GOODS & SERVICES TAX NETWORK: 13.1 Goods and Services Tax Network (GSTN) has been set up by the Government as a private company under erstwhile Section 25 of the Companies Act, 1956. GSTN would provide three front end services to the taxpayers namely registration, payment and return. Besides providing these services to the taxpayers, GSTN would be developing back-end IT modules for 27 States who have opted for the same. Infosys has been appointed as Managed Service Provider (MSP). GSTN has selected 73 IT, ITeS and financial technology companies and 1 Commissioner of Commercial Taxes (CCT, Karnataka), to be called GST Suvidha Providers (GSPs). GSPs would develop applications to be used by taxpayers for interacting with the GSTN. The diagram below shows the work distribution under GST. 13.2 Central Government holds 24.5 percent stake in GSTN while the state government holds 24.5 percent. The remaining 51 percent are held by non- Government financial institutions, H

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1 GST will have a multiplier effect on the economy with benefits accruing to various sectors as discussed below. 14.2 Benefits to the exporters: The subsuming of major Central and State taxes in GST, complete and comprehensive setoff of input goods and services and phasing out of Central Sales Tax (CST) would reduce the cost of locally manufactured goods and services. This will increase the competitiveness of Indian goods and services in the international market and give boost to Indian exports. The uniformity in tax rates and procedures across the country will also go a long way in reducing the compliance cost. 14.3 Benefits to small traders and entrepreneurs: GST has increased the threshold for GST registration for small businesses. Those units having aggregate annual turnover more than ₹ 20 lakhs (10 lakhs in case of North Eastern States) have be registered under GST. Unlike multiple registrations under different tax regimes earlier, a single registration is needed under GST i

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set-off from the producer s point to the retailer s point than what was possible under the prevailing CENVAT and VAT regime. Certain major Central and State taxes will also be subsumed in GST and CST will be phased out. Other things remaining the same, the burden of tax on goods would, in general, fall under GST and that would benefit the consumers. 14.6 Promote Make in India : GST will help to create a unified common national market for India, giving a boost to foreign investment and Make in India campaign. It will prevent cascading of taxes and make products cheaper, thus boosting aggregate demand. It will result in harmonization of laws, procedures and rates of tax. It will boost export and manufacturing activity, generate more employment and thus increase GDP with gainful employment leading to substantive economic growth. Ultimately it will help in poverty eradication by generating more employment and more financial resources. More efficient neutralization of taxes especially for

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, therefore, lesser investment of resources and manpower in maintaining records. It will result in simplified and automated procedures for various processes such as registration, returns, refunds, tax payments. All interaction shall be through the common GSTN portal, therefore, less public interface between the taxpayer and the tax administration. It will improve environment of compliance as all returns to be filed online, input credits to be verified online, encouraging more paper trail of transactions. Common procedures for registration of taxpayers, refund of taxes, uniform formats of tax return, common tax base, common system of classification of goods and services will lend greater certainty to taxation system. 15. EXPERIENCE OF REGISTRATION & RETURN FILING: 15.1 Registration & Returns Snapshot: S. No. Details As on 30th September, 2018 1. No. of transited (migrated) taxpayers 66,21,211 2. Total No. of new applications received for registration 62,88,429 3. No. of applicat

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f GSTR 1 returns filed for July, 2017 58,59,007 22. No. of GSTR 1 returns filed for August, 2017 23,96,415 23. No. of GSTR 1 returns filed for September, 2017 64,57,830 24. No. of GSTR 1 returns filed for October, 2017 24,49,611 25. No. of GSTR 1 returns filed for November, 2017 24,69,650 26. No. of GSTR 1 returns filed for December, 2017 64,00,495 27. No. of GSTR 1 returns filed for January, 2018 24,13,439 28. No. of GSTR 1 returns filed for February, 2018 23,89,232 29. No. of GSTR 1 returns filed for March, 2018 62,38,263 30. No. of GSTR 1 returns filed for April, 2018 23,91,538 31. No. of GSTR 1 returns filed for May, 2018 23,74,142 32. No. of GSTR 1 returns filed for June, 2018 57,76,882 33. No. of GSTR 1 returns filed for July, 2018 21,56,605 34. No. of GSTR 1 returns filed for August, 2018 17,29,999 35. No. of GSTR 2 returns filed for July, 2017 25,72,552 36. No. of GSTR 4 returns filed for quarter July-September, 2017 9,63,396 37. No. of GSTR 4 returns filed for quarter October-

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s the country, attempt has been made to incorporate suggestions and reduce problems through short-term as well as long-term solutions. After rectifying system glitches, E-way bill for inter-State movement of goods has been successfully implemented from 1st April 2018. As regards intra-State supplies, option was given to States to choose any date on or before 3rd June, 2018. All States have notified e-way bill rules for intra-State supplies last being NCT of Delhi where it was introduced w.e.f. 16th June, 2018. 16.3 NAPA has initiated investigation into various complaints of anti-profiteering and has passed orders in some cases to protect consumer interest. 16.4 To expedite sanction of refund, manual filing and processing of refunds has been enabled. Clarificatory Circulars and notifications have been issued to guide field formations of CBIC and States in this regard. The government has put in place an IT grievance redressal mechanism to address the difficulties faced by taxpayers owing

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Goods and Services Tax – GST – By: – Sandeep Rawat – Dated:- 3-10-2018 Last Replied Date:- 4-10-2018 – TDS & TCS provision in GST wef 1 Oct 2018 Deduction, registration, compliance, challenges The GST law requires TDS to be deducted by certain specified Government bodies/ PSUs, where the total value of supply, under a contract, exceeds ₹ 2,50,000. After the GST regime gained momentum, the government decided to introduce TDS and TCS provisions. The GST law requires TDS to be deducted by certain specified government bodies/ PSUs, where the total value of supply, under a contract, exceeds ₹ 2,50,000. The recipient of supply i.e. the TDS Deductor is obligated to deduct 2% (1% CGST + 1% SGST) from the payment made or credited for taxable goods or services or both. The aim to bring this provision is to keep a watch on tax evasion and leakages to the extent possible. The sudden but delayed implementation of TDS provisions from 1 st October 2018 has presented certain challenge

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be deducted on inter-State supplies (irrespective of the location of supplier/ place of supply/ location of recipient). Although the understanding in the FAQ seems to be incorrect, the Department is yet to clarify this position or make the relevant changes to the law. Till then, it remains unclear whether TDS is to be deducted on inter-State supplies. *TDS on inter-unit transactions:* The transactions between two registrations of a same company (even without any consideration) are taxable under GST. As per the provision under TDS, deduction is to be made on payment made or credited to the supplier. Different companies follow different practices with respect to the compensation mechanisms between its units. In such cases, TDS provisions may pose significant accounting and legal challenges. *Contract value or supply value?* The TDS provision specifies that the tax is to be deducted where the total value of such supply, under a contract, exceeds 2.5 lakh. The question that arises is wheth

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and have been a concern for companies. *Compulsory registration for deductors:* Persons who are required to deduct tax are required to obtain registration (whether or not registered separately). The provision does not address the situation where a person is operating through multiple places of business in one State. It remains unanswered whether such a person would require separate registration for each place of business to comply with the compulsory registration provision or a single registration for the entire State would be enough. *Additional compliance burden:* In addition to legal issues, the business would be required to prepare themselves for certain compliance requirements. Over and above the existing returns, the person deducting the tax would also be required to file GSTR-7 for furnishing the details of tax deducted.vinay The Deductor would also be required to furnish to the Deductee (supplier of goods or services) a TDS certificate mentioning the contract value, rate of ded

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2018 (10) TMI 200 – SUPREME COURT OF INDIA – 2018 (17) G. S. T. L. 561 (SC) – Validity of the Goods and Services Tax (Compensation to States) Act, 2017 enacted by Parliament as well as the Goods and Services Tax Compensation Cess Rules, 2017 – validity of Rules framed by the Central Government in exercise of power under Section 11 of the Goods and Service Tax (Compensation to States) Act, 2017 – Jurisdiction.
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Whether the Compensation to States Act, 2017 is beyond the legislative competence of Parliament? – Held that:- Part XI of the Constitution deals with the relation between the Union and the States, Chapter I of which deals with “Legislative Relations”. Article 245 deals with “Distribution of Legislative Powers”. The Parliament has exclusive power to make laws with respect to any of the matters enumerated in List I in Seventh Schedule of the Constitution – Article 246A provides that “notwithstanding anything contained in articles 246 and 254, Parliament, and, subject to claus

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eral power related to a general entry rather it specifically relates to goods and services tax. When express power is there to make law regarding goods and services tax, we fail to comprehend that how such power shall not include power to levy cess on goods and services tax. True, that 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 – power of Parliament to make law providing for compensation to the States for loss of revenue was expressly included by constitutional provision – Further, 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 Compensa

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nsation to States Act is not a colourable legislation.
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Whether levy of Compensation to States Cess and GST on the same taxing event is permissible in law? – Held that:- The petitioner elaborating his contention submits that as per Section 8 of impugned legislation there shall be levied a cess on intraState supply of goods and services as provided in Section 9 of the CGST Act whereas CGST Act has been enacted to levy tax as provided under Article 246A of the Constitution. This is also true in respect of the cesses imposed on inter-State supplies of goods and services covered by Section 5 of IGST Act, 2017 – On the same very transaction there cannot be two levies, one under CGST Act and another under impugned legislation as it would amount to double taxation as levy is on the same taxable event and same subject. Thus, there is an overlapping on law which is not permissible.
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The principle is well settled that two taxes/imposts which are separate and distinct imposts and on two

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tes Cess to the extent he had already paid Clean Energy Cess cannot be accepted – The petitioner is not entitled for any set off of payments made towards Clean Energy Cess in payment of Compensations to States Cess.
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Petition dismissed. – Civil Appeal No. 10177 of 2018 (arising out of SLP(C)No.25415 of 2017), Transferred Case (C) No.9 of 2018, Civil Appeal No. 10179 of 2018 (arising out of SLP(C)No.7708 of 2018) Dated:- 3-10-2018 – Mr. A.K. Sikri And Mr. Ashok Bhushan JJ. For the Petitioner(s) : Mr. K.K. Venugopal, AG, Ms. Nisha Bagchi, Adv. And Mr. B. Krishna Prasad, AOR For the Respondent(s) : Mr. J.K. Mittal, Adv., Mr. Rajveer Singh, Adv., Mr. Praveen Swarup, AOR And M/S. Khaitan & Co., AOR JUDGMENT ASHOK BHUSHAN,J. Leave granted. 2. The validity of the Goods and Services Tax (Compensation to States) Act, 2017 enacted by Parliament as well as the Goods and Services Tax Compensation Cess Rules, 2017, the Rules framed by the Central Government in exercise of power under Sect

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ued notice in the SLP on 22.09.2017 and stayed impugned order passed by the High Court. 5. Civil Appeal arising out of SLP(C)No.7708 of 2018 has been filed by Union of India challenging interim order dated 08.09.2017 passed by the Division Bench of the Delhi High Court in Writ Petition (C) No.7965 of 2017 (Hind Energy and Coal Benefication (India) Ltd. vs. Union of India and another). The Division Bench of the High Court passed interim order dated 08.09.2017 almost in the similar manner as was passed on 25.08.2017. This Court passed an order on 16.01.2018, while hearing SLP(C)No.25415 of 2017 filed against interim order dated 25.08.2017, on oral request of Attorney General, which was also joined by the learned counsel appearing for the respondentswrit petitioners, transferred Writ Petition (C) No.7459 of 2017 to this Court to be heard along with SLP(C)No.25415 of 2017. Transferred Case(C) No.9 of 2018 (Mohit Mineral Pvt. Ltd. vs. Union of India and another) has been registered on trans

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wenty-Second Amendment) Bill, 2014 was introduced in the Lok Sabha to seek amendment in the Constitution, inter alia, 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 inter-State and intra-State. The Constitution (One Hundred and First Amendment) Act, 2016 was passed to levy goods and services tax. 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. On 12.04.2017, Parliament enacted three Acts, namely, (1) The Central Goods and Services Tax Act, 2017; (2) The Integrated Goods and Services Tax Act, 2017; and (3) The Goods and Services Tax (Compensation to States) Act, 2017 (hereinafter referred to as Compensation to States Act, 2017 ). On 04.05.2017, the axation Laws (Amendment) Act, 2017 was enacted, whereunder, several cesses including Clean Energy Cess was repealed. The writ pet

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7 & 2/2017Compensation Cess (Rate), dated 28.06.2017 issued by the Respondent No.1 under the impugned legislation, are illegal and unconstitutional; D) issue a Writ of certiorari/mandamus or any other appropriate Writ/order/direction against the Respondent No.2 by declaring that the Respondent No.2 has no power under Article 279A of Constitution of India to make any recommendation, whatsoever, for levy and collection of cess as envisaged and levied under the impugned Goods and Services Tax (Compensation to States)Act, 2017 or framing of Rules and issuance of Notification under the said impugned legislation; E) issue such other writ/order/direction to the Respondent No.2 to place before this Hon'ble Court the records of the recommendation given and all decision taken in respect of levy and collection of cess as envisaged and levied under the impugned Goods and Services Tax (Compensation to States) Act, 2017, framing of Rules and issuance of Notification under the said impugned l

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the matter is that Section 8 of the impugned Act contemplates levy of "a cess on such intraState supplies of goods or services or both", the same that is provided in Section 9 of the Central Goods and Services Tax Act, 2017 ('CGST Act') and such "inter-State supply of goods and services or both" as provided for in Section 5 of the Integrated Goods and Services Tax Act, 2017 ('IGST Act'). Therefore, it is clear that cess is being levied on the same taxable event that is the subject matter of the levy under the CGST and IGST Acts, viz., supply of goods and services. … … … … 13. The Court, at this stage, is of the view that, the Petitioner has made out a prima facie case for partial ad interim relief subject to conditions. As far as the additional levy on the stocks of coal on which it has already paid the Clean Energy Cess in terms of FA Act, 2010, the Petitioner should not be required to make any further payment. However, on stocks of co

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and Services Tax (GST)by giving concurring taxing power to Union and States for levying GST on every transaction of supply of goods or services both. There was a clear objective of the aforesaid constitutional amendment that with the introduction of Goods and Services Tax, not only the indirect taxes but the cesses and surcharges levied on goods and services shall also be subsumed in it. 12. By Taxation Laws (Amendment) Act, 2017 various enactments levying various types of cesses were repealed including Clean Energy Cess/Clean Environment Cess which was levied and collected on coal. 13. The Compensation to States Act, 2017 is repugnant to and transgress the mandate of the Constitution (One Hundred and First Amendment) Act, 2016. It was the Parliament's conscious decision to abolish with effect from 01.07.2017 all cesses including cess levied on coal as per mandate of the Constitution (One Hundred and First Amendment) Act, 2016. The impugned legislation is colourable legislation whi

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ermissible. 15. The writ petitioner suffered cess of ₹ 400 per ton on the coal and under the impugned legislation the Union is again levying and collecting cess at the rate of ₹ 400 per ton on the stock lying with the petitioner as on 30.06.2017 just on eve of the day when all legislation related to GST including impugned legislation was introduced, whereas on the same stock of coal, cess was already levied and collected under the provisions of Chapter VII of Finance Act, 2010. Thus, it amounts to double collection of tax at the same rate on the same stock. Even if the impugned legislation is found to be within legislative competency, 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. Levy under impugned legislation is tax and not a cess, hence, not permissible in law. 16. Shri K.K. Venugopal, learned Attorney General submits that cess is nothing but a special kind of tax. I

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d services. The Clean Energy Cess was levied and collected for the purposes of financing and promoting clean energy initiatives, funding research in the area of clean energy, for any other purpose relating thereto whereas GST Compensation Cess is collected to provide for compensation to the States for the loss of revenue arising on account of implementation of the goods and services tax. 17. The High Court committed an error in prima facie holding that credit of Clean Energy Cess should be allowed to be utilised for paying GST Compensation Cess. The provision of credit and flow of credit is a purely policy decision of the Executive. The Parliament does not lack legislative competence to enact Compensation to States Act, 2017 nor the legislation can be said to be colourable legislation. The Compensation to States Act, 2017 in no manner transgressed Constitution (One Hundred and First Amendment) Act, 2016. 18. Learned counsel for both the parties have placed reliance on various judgments

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e records. 21. First, we need to notice relevant constitutional provisions and the Parliamentary enactments relevant for the issues raised in these cases. 22. Part XII of the Constitution deals with Finance. Article 265 provides that no tax shall be levied or collected except by authority of law. Article 366 contains definitions. Article 366(26A) defines services as services means anything other than goods . Whereas Article 366 (29A) contains an inclusive definition of tax on the sale or purchase of goods . A Bill was introduced in the Lok Sabha namely, the Constitution (One Hundred and TwentySecond Amendment) Bill, 2014 on 19.12.2014 proposing constitutional amendments to introduce the goods and services tax for conferring concurrent taxing powers on the Union as well as the States including Union territory with Legislature to make laws for levying goods and services tax on every transaction of supply of goods or services or both. Statement of Objects and Reasons of the Bill are as fo

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e Duties, Excise Duty levied under the Medicinal and Toilet Preparations (Excise Duties) Act, 1955, Service Tax, Additional Customs Duty commonly known as Countervailing Duty, Special Additional Duty of Customs, and Central Surcharges and Cesses so far as they relate to the supply of goods and services; (b) subsuming of State Value Added Tax/Sales Tax, Entertainment Tax (other than the tax levied by the local bodies), Central Sales Tax (levied by the Centre and collected by the States), Octroi and Entry tax, Purchase Tax, Luxury tax, Taxes on lottery, betting and gambling; and State cesses and surcharges in so far as they relate to supply of goods and services; (c) dispensing with the concept of declared goods of special importance under the Constitution; (d) levy of Integrated Goods and Services Tax on inter-State transactions of goods and services; (e) levy of an additional tax on supply of goods, not exceeding one per cent. in the course of inter-State trade or commerce to be collec

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ere inserted. Amendments were also made in Articles 248, 249, 250, 268, 269, 270, 271, 286, 366 and 368. Article 268A was omitted. Amendments were also made in Seventh Schedule of the Constitution in List I and List II. Article 246A and 269A as inserted by Constitution (One Hundred and First Amendment) Act, 2016 is as follows:- 246A. Special provision with respect to goods and services tax.- (1) Notwithstanding anything contained in articles 246 and 254, Parliament, and, subject to clause (2), the Legislature of every State, have power to make laws with respect to goods and services tax imposed by the Union or by such State. (2) Parliament has exclusive power to make laws with respect to goods and services tax where the supply of goods, or of services, or both takes place in the course of inter-State trade or commerce Explanation.-The provisions of this article, shall, in respect of goods and services tax referred to in clause (5) of article 279A, take effect from the date recommended

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onsolidated Fund of India. (4) Where an amount collected as tax levied by a State under article 246A has been used for payment of the tax levied under clause (1), such amount shall not form part of the Consolidated Fund of the State. (5) Parliament may, by law, formulate the principles for determining the place of supply, and when a supply of goods, or of services, or both takes place in the course of inter-State trade or commerce. . 24. Article 270 of the constitution as amended by the above Amendment Act is as follows:- 270.Taxes levied and distributed between the Union and the States.- (1) All taxes and duties referred to in the Union List, except the duties and taxes referred to in Articles 268, 269 and 269A, respectively, surcharge on taxes and duties referred to in Article 271 and any cess levied for specific purposes under any law made by Parliament shall be levied and collected by the Government of India and shall be distributed between the Union and the States in the manner pr

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whichever is earlier. 26. At this stage, it is also relevant to notice that in the Constitution (One Hundred and TwentySecond Amendment) Bill, 2014, Clause 18 contain a provision for arrangement for assignment of additional tax on supply of goods to States for two years or such other period recommended by Council, which was to the following effect:- "18. Arrangement for assignment of additional tax on supply of goods to States for two years or such other period recommended by Council (1) An additional tax on supply of goods, not exceeding one per cent. in the course of inter-State trade or commerce shall, notwithstanding anything contained in clause (1) of article 269A, be levied and collected by the Government of India for a period of two years or such other period as the Goods and Services Tax Council may recommend, and such tax shall be assigned to the States in the manner provided in clause (2). (2) The net proceeds of additional tax on supply of goods in any financial year, e

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eriod which may extend to five years. 28. It is, however, to be noticed that Constitution (One Hundred and TwentySecond Amendment) Bill, 2014 was passed but Clause 18 of the Bill was not incorporated and Clause 19 found place as Section 18 of the Constitution (One Hundred and First Amendment) Act, 2016. After the aforesaid Constitution Amendment, Parliament enacted Central Goods and Services Tax Act, 2017 (Act No.12 of 2017 dated 12.04.2017) to make a provision for levy and collection of tax on intra State supply of goods or services or both by the Central Government and for matters connected therewith or incidental thereto. On the same day, another enactment namely 'The Integrated Goods and Services Tax Act, 2017' (Act No. 13 of 2017 dated 12.04.2017) was enacted to make a provision for levy and collection of tax on inter-State supply of goods or services or both by the Central Government and for matters connected therewith or incidental thereto. Another enactment namely '

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and collection of Cess, which is as follows: 8. Levy and collection of cess.- ­­(1) There shall be levied a cess on such intra­State supplies of goods or services or both, as provided for in section 9 of the Central Goods and Services Tax Act, and such inter­State supplies of goods or services or both as provided for in section 5 of the Integrated Goods and Services Tax Act, and collected in such manner as may be prescribed, on the recommendations of the Council, for the purposes of providing compensation to the States for loss of revenue arising on account of implementation of the goods and services tax with effect from the date from which the provisions of the Central Goods and Services Tax Act is brought into force, for a period of five years or for such period as may be prescribed on the recommendations of the Council: Provided that no such cess shall be leviable on supplies made by a taxable person who has decided to opt for composition levy under section 10 of the

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2 of the Customs Act, 1962 (52 of 1962), on a value determined under the Customs Tariff Act, 1975. 29. Section 12(1) empowers the Central Government to make rules for carrying out the provisions of the Act on the recommendation of the Council. The Council is defined in Section 2(e) of the Act as "Council means the Goods and Services Tax Council constituted under the provision of Article 279A of the Constitution". The Schedule of the Act read with Section 8 contains description of supply of goods or services in column 2; Tariff item, heading, subheading, Chapter or supply of goods or services, as the case may be, in column 3 and the maximum rate at which goods and services ta x compensation cess may be collected in column 4. The Central Government, in exercise of power under Section 12, has framed the rules namely "The Central Goods and Services Tax Rules, 2017". 30. Parliament enacted the Taxation Laws (Amendment) Act, 2017 dated 04.05.2017 to amend the Customs Act,

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th and substance the legislation does not belong to the subject falling within the limits of its power but is outside it. 34. Part XI of the Constitution deals with the relation between the Union and the States, Chapter I of which deals with Legislative Relations . Article 245 deals with Distribution of Legislative Powers . The Parliament has exclusive power to make laws with respect to any of the matters enumerated in List I in Seventh Schedule of the Constitution. The Parliament, and subject to Clause(1) of Article 246, the Legislature of a State also have power to make laws with respect to any of the matters enumerated in List III of the Seventh Schedule. Article 248 deals with residuary power of Legislation in following manner: Article 248 – Residuary powers of legislation- (1) Subject to article 246A, Parliament has exclusive power to make any law with respect to a matter not enumerated in the Concurrent List or State List. (2) Such power shall include the power of making any law

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England. It means a tax and is generally used when the levy is for some special administrative expense which the name (health cess, education cess, road cess, etc.) indicates. When levied as an increment to an existing tax, the name matters not for the validity of the cess must be judged of in the same way as the validity of the tax to which is an increment. Guruswamy and Co. v. State of Mysore, AIR 1967 SC 1512, per dissenting judge and India Cement Ltd. v. State of T.N., AIR 1990 SC 85. The word cess means a tax and is generally used when the levy is for some special administrative expense which the name (health cess, education cess, road cess, etc.) indicates. Shinde Brothers v. Hy. Commissioner, Raichur, AIR 1967 SC 1512, 1525. 37. This Court had considered the expression cess in Shinde Brothers Etc. Vs. Deputy Commissioner, Raichur & Others Etc., AIR 1967 SC 1512, Justice M. Hidyatullah, as he then was in his dissenting opinion has defined the cess ( no contrary opinion was ex

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Constitution Bench judgment of this Court in India Cement Ltd. & Others Vs. State of Tamil Nadu & Others, (1990) 1 SCC 12, the above definition given by Hidayatuallah, J. was quoted with approval in Para 19, which is quoted as below:-= 19. Here, we are concerned with cess on royalty. One can have an idea as to what cess is, from the observations of Hidayatullah, J., as the learned Chief Justice then was, in Guruswamy & Co. v. State of Mysore9 where at page 571, the learned Judge observed : The word cess is used in Ireland and is still in use in India although the word rate has replaced it in England. It means a tax and is generally used when the levy is for some special administrative expense which the name (health cess, education cess, road cess etc.) indicates. When levied as an increment to an existing tax, the name matters not for the validity of the cess must be judged of in the same way as the validity of the tax to which it is an increment. 39. The meaning of cess a

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ther educational purposes. 40. The expression cess as held above means a tax levied for some special purpose, which may be levied as an increment to an existing tax. The Scheme of Compensation to States Act, 2017 as noticed above indicate that the cess is with respect to goods and services tax. There are more than one reason to uphold the legislative competence of Parliament to enact the Compensation to States Act, 2017. Constitution Bench of this Court in Union of India Vs. Harbhajan Singh Dhillon, (1971) 2 SCC 779 held that only question to be asked while examining the legislative competence of Parliament with regard to a particular enactment is: Is the matter sought to be legislated or included in List II or in List III or is the tax sought to be levied mentioned in List II or in List III . In Para 21, the Constitution Bench laid down following: 21. It seems to us that the function of Article 246(1), read with Entries 196, List I, is to give positive power to Parliament to legislate

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d mentioned in List II or in List III: No question has to be asked about List I. If the answer is in the negative then it follows that Parliament has power to make laws with respect to that matter or tax. 41. When we pose the above question in context of impugned legislation, i.e. Compensation to States Act, 2017, we do not find any entry in List II or List III of Seventh Schedule, which may refer to levying of cess in question. Article 248 read with Articles 246 and 246A clearly indicate that residuary power of legislation is with the Parliament. In the present case, we may notice that no contention has been raised before us that the subject matter of legislation was within the competence of State Legislature, and that the Parliament had no competence to legislate. Applying the H.S. Dhillon s test (supra), we do not find any lack of legislative competence in the Parliament. 42. Learned counsel for the petitioner relied on two decisions of this Court namely Hoechst Pharmaceuticals Ltd.

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down: 74. It is equally well settled that the various entries in the three Lists are not powers of legislation, but fields of legislation. The power to legislate is given by Article 246 and other Articles of the Constitution. Taxation is considered to be a distinct matter for purposes of legislative competence. Hence, the power to tax cannot be deduced from a general legislative entry as an ancillary power. Further, the element of tax does not directly flow from the power to regulate trade or commerce in, and the production, supply and distribution of essential commodities under Entry 33 of List III, although the liability to pay tax may be a matter incidental to the Centre s power of price control. 75. Legislative relations between the Union and the States inter se with reference to the three Lists in Schedule VII cannot be understood fully without examining the general features disclosed by the entries contained in those Lists : Seervai in his Constitutional Law of India, 3rd Edn.,

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tries 82 to 92A deal with taxes. In List II, Entries 1 to 44 deal with general subjects of legislation; Entries 45 to 63 deal with taxes. This mutual exclusiveness is also brought out by the fact that in List III, the Concurrent Legislative List, there is no entry relating to a tax, but it only contains an entry relating to levy of fees in respect of matters given in that list other than court-fees. Thus, in our Constitution, a conflict of the taxing power of the Union and of the States cannot arise. That being so, it is difficult to comprehend the submission that there can be intrusion by a law made by Parliament under Entry 33 of List III into a forbidden field viz. the State s exclusive power to make a law with respect to the levy and imposition of a tax on sale or purchase of goods relatable to Entry 54 of List II of the Seventh Schedule. It follows that the two laws viz. subsection (3) of Section 5 of the Act and para 21 of the Control Order issued by the Central Government under

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purpose of levy of surcharge, in addition to the tax payable by him, is not assail32 able. So long as sales in the course of inter-State trade and commerce or sales outside the State and sales in the course of import into, or export out of the territory of India are not taxed, there is nothing to prevent the State Legislature while making a law for the levy of a surcharge under Entry 54 of List II of the Seventh Schedule to take into account the total turnover of the dealer within the State and provide, as has been done by subsection (1) of Section 5 of the Act, that if the gross turnover of such dealer exceeds ₹ 5 lakhs in a year, he shall, in addition to the tax, also pay a surcharge at such rate not exceeding 10 per centum of the tax as may be provided. The liability to pay a surcharge is not on the gross turnover including the transactions covered by Article 286 but is only on inside sales and the surcharge is sought to be levied on dealers who have a position of economic sup

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t, 2016 uses the expression any cess levied for specific purposes under any law made by Parliament . Article 270(1) as existed prior to Constitution (One Hundred and First Amendment) Act, 2016, is as follows:- Art.270.(1) All taxes and duties referred to in the Union list, except the duties and taxes referred to in Arts. 268, 268A and 269 respectively, surcharge on taxes and duties referred to in Art. 271 and any cess levied for specific purposes under any law made by Parliament shall be levied and collected by the Government of India and shall be distributed between the Union and the States in the manner provided in clause (2). 47. 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. Lastly, Section 18 of the Constitution (One Hundred and First Amendment) Act, 2016 expressly empowers Parliament shall, by law

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One Hundred and First Amendment) Act, 2016. It is submitted that Constitution (One Hundred and First Amendment) Act, 2016 does not permit levy of cess on supply of goods or services on which Goods and Services Tax has been levied. Elaborating the submission, it is contended that the clear objective of Constitution (One Hundred and First Amendment) Act, 2016 was to subsume various Central and States Taxes, Central and States surcharges and cesses, so far as, they relate to supply of goods and services. When all taxes, surcharges and cesses were subsumed in by Goods and Services Tax, imposition of compensation to States cess clearly falls foul to the Constitution (One Hundred and First Amendment) Act, 2016. The Statements of Objects and Reasons of Constitution (One Hundred and TwentySecond Amendment) Bill, 2014, as noticed above, was to subsume various Central Indirect Taxes and levy of Service Tax, Additional Customs Duty, Special Additional Duty of Customs, Central Surcharges and Cesse

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and the principles of broad and liberal interpretation in consonance with Article 39(b) and (c) of the Constitution. 49. The words arising out of have been used in the sense that it comprises purchase of shares and lands from income arising out of the Kanpur undertaking. We are of the opinion that the words pertaining to and in relation to have the same wide meaning and have been used interchangeably for among other reasons, which may include avoidance of repetition of the same phrase in the same clause or sentence, a method followed in good drafting. The word pertain is synonymous with the word relate , see Corpus Juris Secundum, Volume 17, page 693. 51. Learned counsel for the petitioner has placed reliance on judgment of this Court in Dewan Chand Builders and Contractors Vs. Union of India and Others, (2012) 1 SCC 101. The Parliament had enacted Building and Other Construction Workers (Regulation of Employment and Conditions of Service) Act, 1996 and Building and Other Construction

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the beneficiary, and (ii) if it is a tax then it is a tax on lands and buildings falling within the ambit of Schedule VII List II Entry 49 (the State List), ousting the legislative competence of Parliament. 52. This Court noticed the distinction between fee and tax and referred to earlier judgments including judgment of this Court in Commissioner, Hindu Religious Endowments, Madras Vs. Sri Lakshmindra Thirtha Swamiar of Sri Shirur Mutt, AIR 1954 SC 282. This Court upheld the cess as fee and not tax. In paragraph 31, reasons for upholding levy as fee has been given by this Court, which is to the following effect:- 31. There is no doubt in our mind that the Statement of Objects and Reasons of the Cess Act, clearly spells out the essential purpose the enactment seeks to achieve i.e. to augment the Welfare Fund under the BOCW Act. The levy of cess on the cost of construction incurred by the employers on the building and other construction works is for ensuring sufficient funds for the Wel

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the goods and services tax. We having already held that State compensation cess is with respect to goods and services tax, it is a tax. 54. Learned counsel for the petitioner has further relied on certain decisions on distinction between tax and fee. But the levy of cess, in the present case, not even claimed as fee, it is not necessary to refer to above cases which reiterate the well established principles emanating from Commissioner, Hindu Religious Endowments, Madras Vs. Sri Lakshmindra Thirtha Swamiar of Sri Shirur Mutt (supra). 55. The expression used in Article 246A is power to make laws with respect to goods and services tax . The power to make law, thus, is not general power related to a general entry rather it specifically relates to goods and services tax. When express power is there to make law regarding goods and services tax, we fail to comprehend that how such power shall not include power to levy cess on goods and services tax. True, that Constitution (One Hundred and Fi

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oncerned, the submission of the learned counsel for the petitioner is correct that additional tax, which was contemplated by Clause 18 of the Bill did not find place in Constitution Amendment Act. Further, Clause 19 of the Bill find place as Section 18 of the Constitution (One Hundred and First Amendment) Act, 2016. Thus, power of Parliament to make law providing for compensation to the States for loss of revenue was expressly included by constitutional provision. 57. Further, 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 to States Act, 2017 has been enacted under the express Constitution (One Hundred and First Amendment) Act, 2016. We, thus, also do not find any force in the submission of the learned counsel

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Act is not a colourable legislation. Whether levy of Compensation to States Cess and GST on the same taxing event is permissible in law? (Issue No.4) 59. The petitioner elaborating his contention submits that as per Section 8 of impugned legislation there shall be levied a cess on intraState supply of goods and services as provided in Section 9 of the CGST Act whereas CGST Act has been enacted to levy tax as provided under Article 246A of the Constitution. This is also true in respect of the cesses imposed on inter-State supplies of goods and services covered by Section 5 of IGST Act, 2017. Therefore, on the same very transaction there cannot be two levies, one under CGST Act and another under impugned legislation as it would amount to double taxation as levy is on the same taxable event and same subject. Thus, there is an overlapping on law which is not permissible. The petitioner contends that goods and services tax being already imposed by three enactments of 2017 as noticed above i

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; another subject in some way; but that is not the same thing as the law being on the latter subject. There might be overlapping; but the overlapping must be in law. The same transaction may involve two or more taxable events in its different aspects. But the fact that there is an overlapping does not detract from the distinctiveness of the aspects, Lord Simonds in Governor General in Council v. Province of Madras [1945] FCR 179 P.C. at 193, in the context of concepts of Duties of Excise and Tax on Sale of Goods said: …The two taxes, the one levied on a manufacturer in respect of his goods, the other on a vendor in respect of his sales, may, as is there pointed out, in one sense overlap. But in law there is no overlapping. The taxes are separate and distinct imposts. If in fact they overlap, that may be because the taxing authority, imposing a duty of excise, finds it convenient to impose that duty at the moment when the excisable article leaves the factory or workshop for the first

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for instance, deserve the least attention. There is nothing in Article 265 of the Constitution from which one can spin out the constitutional vice called double taxation. (Bad economics may be good law and vice versa). Dealing with a somewhat similar argument, the Bombay High Court gave short shrift to it in Wester India Theatres (AIR 1954 Bom 261). Some undeserving contentions die hard, rather survive after death. The only epitaph we may inscribe is : Rest in peace and don't be reborn ! If on the same subjectmatter the legislature chooses to levy tax twice over there is no inherent invalidity in the fiscal adventure save where other prohibitions exist. 63. Goods and Services Tax imposed under the 2017 Acts as noticed above 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 are not prohibited by a

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ates Compensation Cess is collected to provide for compensation to the States for the loss of revenue arising on account of implementation of the goods and services tax . 66. The distribution between the Union and States of the Clean Energy Cess and GST Compensation Cess so collected are also different. Under Section 83(6) of the Finance Act, 2010 the Clean Energy Cess was to be used for the purposes of the Union and not to be distributed to the States whereas States Compensation Cess has to be wholly distributed amongst the States to compensate the States. 67. The petitioner's submission that the petitioner should be given the credit to the extent of payment of Clean Energy Cess upto 30.06.2017 also cannot be accepted. The Clean Energy Cess and States Compensation Cess are entirely different from each other, payment of Clean Energy Cess was for different purpose and has no bearing or connection with States Compensation Cess. Giving credit or set off in the payment is legislative p

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2018 (10) TMI 256 – GUJARAT HIGH COURT – TMI – Important questions of the constitution of the Goods and Service Tax Appellate Tribunal raised – instead of admitting the petition we would take up hearing of the petition for final disposal at admission stage itself. – R/SPECIAL CIVIL APPLICATION NO. 7129 of 2018 Dated:- 3-10-2018 – MR AKIL KURESHI AND MR B.N. KARIA, JJ. For The Petitioner : MR.VISHAL J DAVE (6515) And NIPUN SINGHVI (9653) For The Respondent : MR KAMAL TRIVEDI, ADVOCATE GENERAL w

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2018 (10) TMI 691 – CESTAT CHENNAI – TMI – CENVAT Credit – input services – hiring of male nurse for providing medical services inside the factory premises – Housekeeping services – hiring of tractor.
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Hiring of male nurse – Held that:- The credit availed on such services is eligible – reliance placed in the case of Jaypee Sidhi Cement Plant Vs. Commissioner of Central Excise [2016 (7) TMI 348 – CESTAT NEW DELHI], where it was held that the posting of Doctors and Nursing staff is at the behest of the appellant in order to comply with statutory obligation under the Factories Act, 1948 and Mines Act 1952 and credit is to be allowed – credit allowed.
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Housekeeping services – Held that:- The housekeeping service, road cleaning service etc. are availed by the appellant for keeping the factory as well as the roads in a clean and hygienic manner as also as a part of the upkeep of the factory premises. The white washing services were also availed for renovation and upkeep – the serv

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/- 5. Professional services 37,080/- 6. Plantation work 7,895/- 7. Drainage cleaning and sewage dewatering 4,127/- 8. Tractor for weigh feeder calibration and drop test, packing plant trial purpose 7,614/- 2. The ld. counsel Shri Sai Prashanth submitted that hiring of male nurse was availed by the appellant for providing medical services inside the factory premises as per the Factories Act. The appellants are mandated to provide health services in the form of appointment of doctors / nurses etc. within the factory premises. Therefore the credit availed on such services is eligible. He relied upon the decision in the cases of Jaypee Sidhi Cement Plant Vs. Commissioner of Central Excise – 2016 (46) STR 413 and M/s. TATA Yazaki Autocomp Ltd. Vs. Commissioner of Central Excise reported in 2017 (4) TMI 487. 2.1 With regard to housekeeping services, he submitted that such services were availed for upkeep of the factory premises in a clean and hygienic manner. Road cleaning services were avai

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ing the goods from one destination to the other within the factory and submitted that the exclusion part in Clause (B) of the definition of input services does not allow the credit availed on motor vehicles. He therefore submitted that the credit in respect of hiring of tractor cannot be allowed. 4. Heard both sides. 5. The issue with regard to eligibility of credit on hiring of male nurse stands decided in the case relied by the ld. counsel for the appellant. Further, the housekeeping service, road cleaning service etc. are availed by the appellant for keeping the factory as well as the roads in a clean and hygienic manner as also as a part of the upkeep of the factory premises. The white washing services were also availed for renovation and upkeep. The professional services were availed for liaisoning activities with regard to land related matter. The plantation work is also availed by the appellant for keeping the factory premises green as mandated by the Pollution Control Board. Si

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2018 (10) TMI 778 – RAJASTHAN HIGH COURT – TMI – Unable to upload GST TRAN-1 – transition to GST regime – Held that:- The respondents are directed to provisionally entertain the GST TRAN-1 and other returns of the petitioner either by way of opening the portal or manually. – D.B. Civil Writ Petition No. 13986/2018 Dated:- 3-10-2018 – Mr. Justice Mohammad Rafiq And Mr. Justice Goverdhan Bardhar JJ. For the Petitioner(s) : Shri Sanjay Jhanwar For the Respondent(s) : Shri R.D. Rastogi, Addl. Soli

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