Author: admin_gst

2018 (9) TMI 1766 – GUJARAT HIGH COURT – TMI – Vires of amended subrule [5] of Rule 89 of the Central Goods & Services Rules, 2017 which has been given retrospective effect – Held that:- Essentially, by virtue of this rule, in case of inverted tax structure of Service tax, the assessee; such as the petitioner, would not be able to claim refund of the differential service tax.
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The Government, as a subordinate legislature, cannot frame rules which deprives a person of such benefit.
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Notice returnable on 25th October 2018. – R/SPECIAL CIVIL APPLICATION No. 14980 of 2018 Dated:- 27-9-2018 – MR AKIL KURESHI AND MR B.N. KARIA, JJ. For The Respondent (s) : Ms. Oza, Advocate for M/s. Wadia Ghandy And Co (5679) ORAL ORDER (PER : HONOURA

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2018 (9) TMI 1767 – ALLAHABAD HIGH COURT – 2018 (18) G. S. T. L. 814 (All.) , [2019] 60 G S.T.R. 6 (All) – Release of seized goods with vehicle – Section 129 of the CGST Act – ground for seizing the goods is that in the invoice, E-way bill and weigh slip the Truck number was mentioned being U.P.-78-DN 7983 instead of U.P.-78-DN 7938 – Petitioner contended that the mistake was due to inadvertent human error by the person who has prepared the documents including E-way bill, as the vehicle no. is mentioned by him what he has noticed in the tax invoice and further that he has mentioned the same in all other papers/documents subsequent to issuance of invoice – Held that:- Surprisingly, neither the mobile squad authority nor the appellate author

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8 passed by respondent no.3 and further to release the goods and the vehicle. Prima facie, this Court finds that on totally frivolous grounds the goods in question are seized by the Mobile Squad-9, Kanpur. The counsel for the petitioners has placed a copy of the circular dated 14.09.2018 being Circular No. 64/34/2018-GST issued by the Government of India, Ministry of Finance, Department of Revenue, Central Board of Indirect Taxes and Customs, GST Policy Wing which is one of the highest authority, which clearly indicates in Clause 5 that the proceedings under Section 129 of the CGST Act may not be initiated, inter alia, in the situation which are mentioned in the said circular. Learned counsel for the petitioner has placed reliance on Clause

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weigh slip the Truck number was mentioned being U.P.-78-DN 7983 instead of U.P.-78-DN 7938. Learned counsel for the petitioner contended that the said mistake was due to inadvertent human error by the person who has prepared the documents including E-way bill, as the vehicle no. is mentioned by him what he has noticed in the tax invoice and further that he has mentioned the same in all other papers/documents subsequent to issuance of invoice. Surprisingly, neither the mobile squad authority nor the appellate authority appreciated the claim of the petitioner that it is due to mistake or human error the vehicle number (particularly last two digits) are mentioned different which in the instant case are 83 in place of 38. This Court is unhappy

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2018 (9) TMI 1768 – APPELLATE AUTHORITY FOR ADVANCE RULING, WEST BENGAL – 2018 (17) G. S. T. L. 698 (App. A. A. R. – GST) – Input Tax Credit – stock transfer from the Head Office of M/s. GKB Lens Pvt. Ltd. to its branches in other States at Zero Value – optical lenses and frames for spectacles and accessories.
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According to the Appellant “the wordings of the Ruling dated 30.05.2018 has created an impression that the recipient would be eligible for Input tax Credit if the supplier paid the tax.” Instead of those wordings the WBAAR should have declared in no uncertain terms that no input tax credit would be available for supply at Zero Value.
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Held that:- From a plain reading of law laid down under section 16 of the GST Act, it is clear that, inter alia, input tax credit is available only when the recipient is in possession of a tax invoice or debit note issued by the supplier registered under the GST Act, and in case of a supply between distinct and/or related persons, as bet

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BAAR2018-19 dated 30.05.2018 = 2018 (6) TMI 72 – AUTHORITY FOR ADVANCE RULING – WEST BENGAL pronounced by the West Bengal Authority for Advance Ruling. 2. M/s. GKB Lens Pvt. Ltd., holding GSTN No. 19AACCG3446M1ZA, re-seller and importer of Sun Glasses, Frames, Lenses, Contact Lenses, etc,. having its Head Office in West Bengal (hereinafter referred to as the Respondent ), transferring, inter alia, goods, namely, Optical Lenses and Frames for Spectacles and Accessories, from Head Office in West Bengal to its branches in other States, sought an Advance Ruling on the following issues- (a) whether the transfer of goods (optical lenses and frames for spectacles and accessories) from Head Office in West Bengal to its branches in other states, can be done at cost price, by applying the second proviso to Rule 28 of CGST Rules, 2017 (instead of 90 % of MRP as required under the First Proviso to Rule 28 of CGST Rules, 2017, and (b) what is meant by the expression where the recipient is eligible

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an impression that the recipient would be eligible for Input tax Credit if the supplier paid the tax. Instead of those wordings the WBAAR should have declared in no uncertain terms that no input tax credit would be available for supply at Zero Value. 4. During the course of the hearing the Respondent submitted a copy of a tax invoice issued by the Head Office, which may be considered as a prototype invoice, as evidence of no tax being charged on supplies made at zero value. It was further submitted and stated that the Respondent has no objection to any clarification being added to the aforementioned Advance Ruling regarding the non-admissibility of credit of Input Tax on goods supplied at zero value. 5. From a plain reading of law laid down under section 16 of the GST Act, it is clear that, inter alia, input tax credit is available only when the recipient is in possession of a tax invoice or debit note issued by the supplier registered under the GST Act, and in case of a supply betwee

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2018 (10) TMI 81 – CESTAT MUMBAI – TMI – CENVAT credit – allegation of fraud and tampering of evidence is raised against the appellant – section 73 of the Indian Evidence Act.
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Held that:- As per section 73 of the Indian Evidence Act, comparing of handwriting and signature can be done by a court but even such requirement would not arise in the instant case since to a man of ordinary prudence, two different handwriting are visible in those two bills and it appears that labour charges have been purposefully inserted in the bills to cover the services availed under the Cenvat Credit Rules – Going by the unethical practice adopted by the appellant, it can be said that the same would amount to fraud within the definition of IPC.
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The documentary evidence produced before the Court have no connection on the actual transactions made by the appellant but those appear to have been are created for the purpose of meeting the requirement of law – fraud established – Appeal dismissed. – E

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Those services availed and grounds of refusal are enumerated in the order-in-original. Broadly they are – 1) Invoices of certain services were raised in the name of appellant head office; 2) Services of labourers used for civil work in shifting of machinery; 3) AMC for maintenance of Air conditioner, refrigerator and computer for canteen; 4) Garden services [held admissible by the Commissioner (Appeals)]; 5) Housekeeping and civil activities during the period October 2011 and May 2015. Order-in-original exempted housekeeping services in its totality and reduced services of labour utilised for shifting of machinery from ₹ 36,224/- to ₹ 29,550/- and that portion was paid by the appellant. Rest of demands were confirmed which was challenged before the Commissioner (Appeals), Thane GST and CX, Mumbai who allowed cenvat credit for the entire amount of ₹ 31,195/- availed against gardening services and confirmed the duty demand etc. in respect of rest of services. 3. During

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le for availment of cenvat credit against such services availed at the factory for which he prays for setting aside of the order passed by the Commissioner (Appeals) and concerning part refusal of credits. 4. In response to the submissions of the appellant, ld. AR for the department submitted that appellant obtained licence as input service distributor but had not followed the distribution pattern required under the Rule for transfer of goods and services from the Head office to the factory unit for which it was rightly held by the Commissioner (Appeals) that technical mistake on the basis of provision of Rule 9(2) of the cenvat credit is not remediable and the credit taken back by the assessee on the basis of ISD challan no. 1003 dated 02.05.2013 was not the subject matter of show-cause notice. On the basis of this observation, the ld. AR contended that such irregularity was sought to be purposefully remediated in raising ISD challan after the irregularity was pointed by the departmen

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does not have direct relation to the input availed of against modernisation/ renovation. 5. Giving a pause at his argument, I have inspected the sample invoices for my appraisal and exhibit A, B and C annexed to the appeal memo since allegation of fraud and tampering of evidence is raised against the appellant. As it appears to the naked eye, in both bills raised by M/s. G. Raju, Engineering Works contractor on 06.09.2010 and 06.3.2011, original description in the particular column is machinery shifting from Washind to Goa but in the first copy of bill labour charges are inserted in a different handwriting at the end of the description and in the second bill, it is inserted also in another handwriting at the beginning of the description column. 6. As per section 73 of the Indian Evidence Act, comparing of handwriting and signature can be done by a court but even such requirement would not arise in the instant case since to a man of ordinary prudence, two different handwriting are visi

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tion of IPC. It has been held in numerous judicial pronouncements of the Apex court, the leading case being reported in AIR 1994 SC 853, in the case of S.P Chengalvaraya Naidu vs Jagannath that a person whose case is based on false suit has no right to approach the Court. He can be summarily thrown out at any stage of litigation. 8. I find it proper to reproduce the relevant para of the said judgment. The courts of law are meant for imparting justice between the parties. One who comes to the court, must come with clean hands. We are constrained to say that more often than not, process of the court is being abused. Propertygrabbers, tax-evaders, bank-loan-dodgers and other unscrupulous persons from all walks of life find the court-process a convenient lever to retain the illegal-gains indefinitely. We have no hesitation to say that a person, whose case is based on falsehood, has no right to approach the court. He can be summarily thrown out at any stage of the litigation. (highlighted t

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2018 (10) TMI 97 – CESTAT MUMBAI – TMI – Belated filing of appeal – non-payment of pre deposit – case of appellant is that they could not file the said appeal before the Commissioner (Appeals) within two months of receipt of the order but filed the same within 30 days thereafter with a prayer for condonation of delay explaining sufficient grounds for such delay but that was not accepted by the Commissioner (appeals).
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Held that:- Section 35B (b) empowers the Appellate Tribunal to entertain appeal against an order passed by the Commissioner (Appeals) under Section 35A and in view of Sub-Section 4 to Section 35A, such order of the Commissioner (Appeals), at the time of disposal of appeal before him, shall state the points for determination, the decision thereon and the reasons for such decisions – Since this Appellate Tribunal cannot go beyond the order of the Commissioner (Appeals) to scrutinize the merit of the decision of the adjudicating authority, it is a fit case which necess

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llan as exhibit A is filed at this end, no further discussion is required to be done on pre deposit.
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The appeal is allowed and the delay of 3 weeks in filing appeal before the Commissioner (Appeals-III) is condoned at this end – Predeposit having been made at this end, matter is remanded back to him for re-adjudication – application allowed. – ST/87354/2018 – A/87453/2018 – Dated:- 27-9-2018 – Dr. Suvendu Kumar Pati, Member (Judicial) For the Applicant : Shri Devendra Jain, C.A. For the Respondent : Shri Dilip Shinde, Assistant Commissioner (AR) ORDER Disposal of two appeals filed by the appellant before the Commissioner (Appeals III), GST & CX, Mumbai against adjudication orders confirming duty demand, interests and penalties solely on the ground of belated filing and non-payment of pre deposit is the subject matter of the appeal before this Tribunal. 2. Contention of the appellant, as submitted by Learned C.A. Shri Devendra Jain, is that Appellant could not file the said ap

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. Dilip Shinde submitted that Orders-in-Original were passed on 30/31.08.2016 but the appellant filed this appeal on 09.08.2017 claiming that it was received at their end on 15.06.2017 for which the Commissioner had rightly given his finding. Further he disputed the contention of the appellant that substantial portion of the duty liability was discharged. Since both the OIOs and OIA revealed that duty demand of ₹ 7,69,009/- and ₹ 73,28,013/- were confirmed by those orders along with interests and penalties, Section 35F bars the appeal bereft of pre deposit for which interference by this appellate court is uncalled for. 4. Perused the case record including the OIA. It is found from paragraph 18 of the OIA that OIOs were received admittedly by the appellant on 15.06.2017 that is after 9 months 14 days of the orders passed on 30/31.08.2016. It was also recorded by the Commissioner appeals that no documentary evidence was furnished by the appellant concerning the receipt of OIO

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l Excise Act which has made mandatory provision concerning pre deposit of 7.5% duty demand and penalty and the same had not been complied with. 5. On close summary of the documents on record and OIA, it is apparently clear that acknowledgment of receipt of orders in original by the appellant vide exhibit E contains the date of receipt as 15.06.2017. The ground of rejection of delay condonation petition by the Commissioner (Appeals) indicates that appellant had applied to the Department in writing on 24.08.2017 i.e. after two weeks of filling of appeal, as held by Commissioner, but no finding is forthcoming as to if any previous proof of delivery of OIOs on the appellant was established. Therefore the date refered in the acknowledgment vide Exhibit E has to be accepted as the date of delivery of OIOs on the appellant. The Commissioner has relied upon the decision of the Hon ble Supreme Court pronounced in respect of Singh Enterprises Vs. Commissioner of C. Ex., Jamshedpur 2008 (221) E.L

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substantial justice deserves to be preferred for the other side cannot claim to have vested right in injustice being done because of a nondeliberate delay and there is no presumption that delay was occasioned deliberately. 6. In another decision, reported in (2001) 9 SCC 106, Hon ble Supreme Court has observed that where the delay is of a few days, the court should adopt a liberal approach. A distinction must be made between a case where the delay is inordinate and a case where the delay is of few days. Whether the delay is inordinate, the consideration of prejudice to the opposite party will be a relevant factor calling for a more cautious approach, but in the latter case where the delay is of few days, no such consideration may arise, and such a case deserves a liberal approach. The Hon ble Supreme Court also observed that in exercise of discretion on the facts of each case, keeping in mind that in construing the expression sufficient cause , the principle of advancing substantial ju

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ise Act 1994 and the Central Excise Rules. Section 35C empowers this Tribunal to confirm, modify or annul the decision of the order appeal against, which indicates that the merit of the decision is to be assessed by the Appellate Tribunal. In the instant case, as found from the order of the Commissioner (Appeals), no merit concerning tax liability of the appellant has been discussed and the appeal filed by him was rejected as not maintainable as hit by the period of limitation. 9. Section 35B (b) empowers the Appellate Tribunal to entertain appeal against an order passed by the Commissioner (Appeals) under Section 35A and in view of Sub-Section 4 to Section 35A, such order of the Commissioner (Appeals), at the time of disposal of appeal before him, shall state the points for determination, the decision thereon and the reasons for such decisions. Hon ble Supreme Court in Saheli Leasing & Industry Ltd. – 2010 (253) ELT 705 (SC) also proposed a guideline to be followed by quasi judici

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2018 (10) TMI 347 – MADRAS HIGH COURT – TMI – Revision of assessment – rejection of claim of exemption for interstate purchase of building materials – Section 3B(2)(b) of the TNGST Act, 1959 – Held that:- A careful perusal of notice of proposal dated 11.06.2008, would indicate that the same does not reveal any material details or particulars as to how the Assessing Officer proposed to disallow the exemption already granted in respect of purchases made through interstate sale to the tune of ₹ 1,80,16,025/-. Except stating that on examination of assessement on records, it is seen that turnover of ₹ 1,80,16,025/-, being the interest purchase of building materials, were wrongly allowed exemption, the said notice does not disclose as to what materials found in the assessment records had driven the Assessing Officer to make such proposal for disallowing the exemption.
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The reasons given for disallowing exemption, would show that such reasonings were not referred in the form

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s aggrieved against the order dated 03.11.2008, revising the assessment in respect of assessment year 2004-05. 2. The petitioner is a Limited Company engaged in the business of Civil construction and a registered dealer under the second respondent. The assessment for the year 2004-05 under TNGST was completed and an order of assessment was passed by the second respondent on 15.11.2006, wherein the second respondent had allowed exemption of ₹ 1,80,16,025/-, representing value of building materials purchased in the course of interstate trade. However, on 11.06.2008, the second respondent issued a notice of proposal for revising the assessment by rejecting the claim of exemption for interstate purchase of building materials for the above said value of ₹ 1,80,16,025/-. The petitioner made their objection on 24.06.2008. However, the second respondent passed the impugned order on 03.11.2008, disallowing the exemption already granted in the original order of assessment in respect

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order of assessment dated 15.11.2006. Therefore, he submitted that without there being any valid reason, such conclusion arrived by the Assessing Officer cannot be changed or altered by way of revision. 4.On the other hand, the learned Additional Government Pleader appearing for the respondents submitted that when the petitioner was not entitled to exemption in respect of purchases of building materials effected through interstate sale, the Authority is entitled to revise the order of assessment granting such exemption. He further submitted that the present impugned order was passed only after issuing notice of proposal and considering the reply submitted by the petitioner to such notice. Therefore, he contended that the impugned order need not be interfered with. 5.Heard both sides and perused the materials placed before this Court. 6.The issue involved in this case is in respect of purchases of the building materials made by the petitioner effected through interstate sale. The petit

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emption already granted in respect of purchases made through interstate sale to the tune of ₹ 1,80,16,025/-. Except stating that on examination of assessement on records, it is seen that turnover of ₹ 1,80,16,025/-, being the interest purchase of building materials, were wrongly allowed exemption, the said notice does not disclose as to what materials found in the assessment records had driven the Assessing Officer to make such proposal for disallowing the exemption. 8. Needless to state that the assessee will be in a position to file an effective reply to the notice of proposal only when such notice contains the material details and particulars regarding the proposal. In the absence of such details and particulars, certainly the assessee will not be in a position to effectively make a reply and defend the case before the Assessing Officer. However, the assessee in this case has given their reply on 24.06.2008 and requested to drop the proceedings. They strongly relied on S

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on 11.06.2008. Needless to say that a reasoning in the order of assessment should emerge from the related grounds raised in the notice of proposal and not to be stated as the first time, while passing the order of assessment. In other words, the assessee cannot be put to surprise with certain reasons in the assessment order, when crux of such reasons, in the form of grounds, is not stated in the notice of proposal. At the same time, at this stage, this Court is not expressing any view on the correctness or otherwise of the reasons assigned by the Assessing Officer in the impugned order, as this Court is inclined to interfere with the same only on the reason that the same was passed strictly not by following the principles of natural justice. Therefore, this Court is of the view that the matter has to go back to the Assessing Officer once again for redoing the revision of assessment on merits and in accordance with law, after issuing a fresh notice of proposal with material details and

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GST – States – Order No. 04/2018-MGST – Dated:- 27-9-2018 – COMMISSIONER OF STATE TAX, MAHARASHTRA STATE GST Bhavan, Mazgaon, Mumbai 400 010, dated the 27th September 2019. ORDER Order No. 04/2018-MGST No. JC(HQ)-1/GST/2017/Order/19/ADM-8 Subject: Extension of time limit for submitting declaration in FORM GST TRAN-1 under rule 117(1A) of the Maharashtra Goods and Services Tax Rules, 2017 in certain cases. In exercise of the powers conferred by sub-rule (1A) of rule 117 of the Maharashtra Goods

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2018 (10) TMI 1048 – AUTHORITY FOR ADVANCE RULING, TAMILNADU – 2018 (18) G. S. T. L. 362 (A. A. R. – GST) – Classification of goods – rate of tax – Agricultural Seedling Trays – Applicant claims that the goods are to be classifiable under Tariff heading 8201 Chapter 82 falls under Section XV of Customs Tariff which covers “Base Metals an articles of Base Metals”.
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Held that:- A combined reading of section and chapter notes and description of goods covered under Tariff heading 8201 reveals that the goods covered under this Section XV have to be made of base metals or should be articles of base metals. ‘Base metals as per Section Note above do not include plastics’. Further, chapter 82 covering ‘Tools, implements, cutlery, spoons and forks, of base metal; parts thereof of base metal’ should necessarily have a blade, working edge, working surface or other working part of base metal or others – The product in question is Seedling Trays made of fully of plastic i.e. polypropylene and

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ny agricultural machinery. Rice planting machinery do not need these seedling trays to function and hence cannot be classified as parts or accessories of agricultural machinery.
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The subject goods are rightly classified under CTH 39269099 as articles of plastics not elsewhere specified. SL no 111 of Schedule III of Notification No 01/2017-C.T. (Rate) dated 28.06.2017 as amended and SL no 111 of Schedule III of of G.O. (Ms) No. 62 dated 29.06.2017 no. II (2)/CTR/532(d-4)/2017 covers “Other articles of plastics and articles of other materials of headings 3901 to 3914 [other than bangles of plastic, plastic beads and feeding bottles]” at 9% CGST and 9% SGST.
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Ruling:- Agricultural Seedling Trays made of Plastic manufactured by the Applicant are classifiable under CTH 39269099 and the applicable tax rate is 9% CGST as per Sl. No. 111 of Schedule 111 of Notification No 01/2017-C.T. (Rate) dated 28.06.2017 as amended and is 9% SGST as per Sl No. 111 of Schedule III of G.O. (Ms) No.

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as Saro or Applicant) are a proprietary manufacturer registered under GSTIN 33AANPM1974C1ZS. The applicant has submitted the copy of application in Form GST ARA – 01 and also submitted a copy of Challan evidencing payment of application fees of ₹ 5,000/-each under sub-rule (1) of Rule 104 of CGST rules 2017 and SGST Rules 2017. They are manufacturing Hard Nursery Trays used for the Rice transportation. Saro Enterpriseshas sought Advance Ruling on the Applicable tax on Agricultural trays . 2.1 Saro Enterprises manufacture and market disposable plastic items like lunch trays, spoons and other plastic packaging products including Plastic Seedling Trays which is used for paddy transplantation. The trays are solely used for agricultural purpose for growing paddy, and generally called Agricultural Seedling Trays . They market the trays to the end users, basically farmers as well as small dealers who further make the sale of these trays to farmers. Agricultural Seedling Trays are used m

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s made of polypropylene. It is seen from the catalogue produced that the goods are of dimensions 600 mm x 30 mm x 30 mm with grooves dividing the tray into small squares each of which have holes of 1 mm or 3 mm size, depending on the variety of the tray. Paddy seedlings are grown in these trays. The holes are designed to ensure optimum drainage of water and to prevent the roots from getting damaged. The applicant states that the trays are also compatible to various rice transplantation machinery. However, the tray itself is not a part of any machine or used with any machine or electronically driven. It is seen from the invoices produced that the goods are being sold as Agriculture Paddy Seedling Tray . 4.1 The issue before us is to determine the classification of -Agricultural Seedling Trays. In terms of explanation (iii) and (iv) to Notification No. 1/2017 – Central Tax (Rate) dt. 28-06-2017, tariff heading, sub-heading, heading and chapter shall mean respectively a tariff item, sub-h

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portable forges, grinding wheels with frameworks, manicure or pedicure sets, and goods of heading No. 82.09, this chapter covers only articles with a blade, working edge, working surface or other working part of: (a) Base Metal; (b) Metal carbides or cermets; (c) Precious or semi-precious stones (natural, synthetic or reconstructed) on a support of base metal, metal carbide or cermet; or (d) Abrasive materials on a support of base metal, provided that the articles have cutting teeth, flutes, grooves, or the like, of base metal, which retain their identity and function after the application of the abrasive. Explanatory Notes to Chapter 82 states Tools, cutlery etc do not in general fall in their Chapter unless the blade, working edge, working surface or other working part is of base metal, of metal carbides or of cermets. A combined reading of section and chapter notes and description of goods covered under Tariff heading 8201 reveals that the goods covered under this Section XV have t

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stic or polypropylene with dimensions 600 mm x 30 mm x 30 mm with grooves dividing the tray into small squares each of which have holes of 1 mm or 3 mm size, depending on the variety of the tray. Paddy seedlings are grown in these trays after suitable soil is placed in them. The holes are designed to ensure optimum drainage of water and to prevent the roots from getting damaged. Once the seedlings are grown as a single mat, the trays used to transport the seedlings to the land for transplantation. This may be done directly by the farmer or the seedling mats may be placed in rice transplant machinery which will carry on the transplantation work. The Applicant states that the trays are sold to end users who are farmers and also small dealers who make the sale to farmers. These trays are also compatible to various rice transplantation machinery in terms of the dimension of the seedlings mat grown, spacing between each seedling etc. The trays help in growing and transporting the seedlings

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2018 (10) TMI 1049 – AUTHORITY FOR ADVANCE RULING, TAMILNADU – 2018 (18) G. S. T. L. 311 (A. A. R. – GST) – Rate of GST – Coir Pith – What is applicable GST rate for Coir Pith? – Held that:- The products in question are coir pith in raw form which is either sold as loose form or supplied by the applicant in Blocks, Briquettes form without any addition of chemicals. It is different from coir fibre. Further, the coir pith supplied by the Applicant does not undergo composting process, which would alter its composition and cannot be called as coir pith compost. Hence coir pith in its raw form whether in loose powder or compressed into blocks form are taxable at 2.5% CGST as per Sl. No 215 of Schedule I of Notification No. 01/2017-C.T.(Rate) dated 28.06.2017 as amended and at 2.5% SGST as per Sl.No. 215 of Schedule I of G.O. (Ms) No. 62 dated 29.06.2017 No. II (2)/CTR/532(d-4)/2017.
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Ruling:- Coir pith in its raw form whether in loose powder or compressed into blocks form without any

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and Service Tax Act. M/s. Jeena Exports at No. 11 A, Spencer Compound, Dindigul 624001, Tamilnadu (hereinafter referred as the Applicant) is engaged in Trading in Coir Fibre, Coir Pith and Curled Coir. The applicant has submitted the copy of application in Form GST ARA – 01 and also submitted the copy of Challan evidencing payment of application fees of ₹ 5,000/- each under sub-rule (1) of Rule 104 of CGST rules 2017 and SGST Rules 2017. They are registered under GST vide Registration No. 33AKYPP4117DIZ2. They have preferred an application seeking Advance Ruling on the following question: What is applicable GST rate for Coir Pith? 2.1 The Applicant has stated that Coir pith is a by-product of the coir fibre processing industry. In the husk, coconut fibre are seen tightly packed along with non -fibrous, fluffy and light weight corky material known as coir pith or coir dust, which constitutes 50-70% of the husk. In the process of extraction of coir fibre from husk, generally about

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same. The coir products are not taxable in earlier Central Excise Law or under VAT law. If coir pith is classified under the same chapter in GST, applicable rate is 0%. As there is no specific clarification on the same in the GST law, they want to know the taxability of the product under GST. 3.1 The Authorized Representative of the Applicant was heard in the matter. They stated that they purchase coconut husk and extract coir pith. They submitted write up of manufacturing process and undertook to submit invoices for procuring husk and invoices for selling coir pith within a week. They stated that they do not need another hearing. Subsequently they furnished the above details for perusal. 3.2 All documents submitted were examined. It is seen from the purchase voucher that the applicant procures coconut husk. The manufacturing process indicates that coconut husk is processed to separate the coir fibre and coir dust also called as pith. The coir fiber is compressed into bales. The coir

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old in loose dust form or compressed into bricks / blocks and sold. 4.2 In terms of explanation (iii) and (iv) to Notification No. 1/2017 – Central Tax (Rate) dt. 28-06-2017, tariff heading, sub-heading, heading and chapter shall mean respectively a tariff item, sub-heading, heading and chapter as specified in the First Schedule to the Customs Tariff Act, 1975 and the rules for the interpretation of the First Schedule to the Customs Tariff Act, 1975, including the Section and Chapter Notes and the General Explanatory Notes of the First Schedule shall be applied for the interpretation and classification of goods. On perusal of Chapter Heading 5305 of Customs Tariff, 53050010- Coir bristles fibre, coir mattress fibre, coir short fibre, coir bit fibre, decorticated coir fibre 53050040 – Coir pith, processed in value added form like briquette, coins, neo disc, grow bags, organic manure and in loose form for use in horticulture or agriculture. From the submissions of the Applicant, it is ev

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vide Notification No. 18/2018 dated 26th July 2018 Notification no. 02/2017-C.T.(Rate) dt. 26th July 2018, which gives the exemption list: Sl.No. Chapter Head Description 132. 5305 Coconut, coir fibre Notification No. 19/2018 dated 26th July 2018 amended Notification 2/2017-C.T.(Rate) as under: (vi) after S. No. 132 and the entries relating thereto, the following serial number and the entries shall be inserted, namely: – 132A 53 Coir pith compost other than those put up in unit container and, – (a) bearing a registered brand name; or (b) bearing a brand name on which an actionable claim or enforceable right in a court of law is available [other than those where any actionable claim or enforceable right in respect of such brand name has been foregone voluntarily, subject to the conditions as in the ANNEXURE I] ; From the above, it is clear that only coir fibre was covered under the exemption upto 25th July 2018. Thereafter coir pith compost other than those put up in unit container and

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2018 (10) TMI 1050 – AUTHORITY FOR ADVANCE RULING, TAMILNADU – 2018 (18) G. S. T. L. 308 (A. A. R. – GST) – Input tax credit – CGST & SGST charged in respect of brokerage services for renting of immovable property – outward supply – Whether applicant are eligible to take Input Tax Credit of the CGST & SGST charged by M/S Catalyst Consulting Chennai in respect of brokerage services and adjust the same against output tax payable against Renting of immovable property?
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Held that:- The applicant has received an inward supply of real estate brokerage services for renting of property on a fee basis. Due to the services of Catalyst Consulting Chennai, the applicant was able to make an outward supply of renting of the property to Vantec Logistics India Private Limited. Hence, this inward supply was used in the course of the applicants business. This inward supply rendered by catalyst Consulting is not listed in any of the exceptions mentioned in Section 17 (5) of CGST Act/ SGST Act for a

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nce Ruling, Chennai under Sub-section (1) of Section 100 of CGST ACT/TNGST Act 2017 within 30 days from the date on which the ruling sought to be appealed against is communicated. At the outset, we would like to make it clear that the provisions of both the Central Goods and Service Tax Act and the Tamil Nadu Goods and Service Tax Act are the same except for certain provisions. Therefore, unless a mention is specifically made to such dissimilar provisions, a reference to the Central Goods and Service Tax Act would also mean a reference to the same provisions under the Tamil Nadu Goods and Service Tax Act. M/s. Adwitya Spaces Private Limited, Administrative office at New No. 57, Second Floor, Bazullah Road, T.Nagar, Chennai- (hereinafter referred to as Applicant or Adwitya ) is engaged in the business of letting out property and is in receipt of rental income. They are registered under GST with GSTIN 33AAOCA6683J2Z6. The applicant has submitted the copy of application in Form GST ARA –

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by M/S Catalyst consulting Chennai falls under the definition of input tax under section 2(62) of CGST Act and they have requested to clarify if input tax credit can be availed on the brokerage fees paid to the property consultant. They have stated that the tax of CGST & SGST paid by them on brokerage charges falls under input tax under Section 2(62) of CGST Act and is not covered under any restrictions under Section 17 (5) (c) or (d) and hence are eligible to take input tax credit. 3.1 The Authorised Representative of the applicant was heard in the matter on 30.05.2018 and 25.07.2018. They stated that they have taken GST registration and started the Company only last year. They have given on rent the commercial property through the brokerage firm, M/s. Catalyst Consulting Chennai. They submitted GSTR-1, 2A and Lease agreement copies. They stated that there is no Purchase Order, contract agreement between Catalyst consulting and them. Only an invoice has been raised. They submitte

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y Catalyst Consulting towards Brokerage charges for warehouse building leased to M/s. Vantec logistics India Private Limited with SAC 997221 of value ₹ 2,32,38,402.00 in which CGST at 9% and SGST at 9% was charged to the applicant. GSTR 3B and GSTR-1 was filed by M/s. Catalyst Consulting Chennai for the month of December 2017 for the amount and screenshots of GSTR 2A of the applicant indicate this transaction is reflecting in the inward supplies. 4.1 The issue before us is to decide on the admissibility of input tax credit of tax paid to M/s. Catalyst Consulting, who have rendered brokerage services to the applicant for leasing out the premises for the applicant to Vantec Logistics India Private Limited, M/s. Catalyst Consulting Chennai raised a bill for the Brokerage Charges alongwith CGST and SGST. 4.2 M/s. Catalyst Consulting Chennai provided brokerage services by identifying a leasee for the commercial property owned by the applicant. As per the invoice raised by Catalyst Con

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sion of sub section (3) & (4) of Section 7 of the Union territory goods and service tax Act. But does not include tax paid under the composition levy. Section 16 (1) of the Act provides for the Eligibility and conditions for taking input credit, as follows: 16. (1) Every registered person shall, subject to such conditions and restrictions as may be prescribed and in the manner specified in section 49, be entitled to take credit of input tax charged on any supply of goods or services or both to him which are used or intended to be used in the course or furtherance of his business and the said amount shall be credited to the electronic credit ledger of such person. In the subject case, the applicant has received an inward supply of real estate brokerage services for renting of property on a fee basis. Due to the services of Catalyst Consulting Chennai, the applicant was able to make an outward supply of renting of the property to Vantec Logistics India Private Limited. Hence, this in

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2018 (10) TMI 1051 – AUTHORITY FOR ADVANCE RULING, TAMILNADU – 2018 (18) G. S. T. L. 324 (A. A. R. – GST) – Classification of goods – rate of tax – Nonwoven Rice Bags – Held that:- The applicant purchases non-woven fabric roll, convert into sheets by cutting and on printing, stitch into bags which are used mainly for packing rice and food products. They have further stated that their product non woven fabric bags of various sizes falls below ₹ 1000 each.
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Heading 6305 covers textile sacks and bags of a kind normally used for the packing of goods for transport, storage or sale – The applicant manufactures non-woven fabric bags which is used mainly for packing rice and food products and the product made of 100% polypropylene fiber is classifiable under 63053300.
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Rate of tax – Held that:- The applicant has stated that their product nonwoven fabric bag falls below ₹ 1000/ Therefore, the applicable rate is 2.5% CGST as per S.No. 224 of Schedule I of Notification No.

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ear that the provisions of both the Central Goods and Service Tax Act and the Tamil Nadu Goods and Service Tax Act are the same except for certain provisions. Therefore, unless a mention is specifically made to such dissimilar provisions, a reference to the Central Goods and Service Tax Act would also mean a reference to the same provisions under the Tamil Nadu Goods and Service Tax Act. M/s.. Sharmila Screen Printers(Legal Name Kanniwadi Nagarajan Sharmila) doing business at Plot No.2072, 90th Cross Road, Villapuram HB, Madurai – 625 011. (Hereinafter called the Applicant) is a registered person under the GST Act, 2017 with GSTIN 33AQWPS0012N1ZI. The Applicant has submitted a copy of Challan evidencing payment of application fees of ₹ 5, 000/- each under sub-rule (1) of Rule 104 of CGST rules 2017 and SGST Rules 2017. They have filed an Application seeking Advance Ruling on the following: Clarification on Rate of tax and HSN code for Nonwoven Rice Bags 2.1 The Applicant manufact

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63059000- Other made up textile articles, sets, worn cloths and woven textile articles and liable to be taxed at 5% GST if the sale Value does not Exceed ₹ 1000/- Vide Sl.No.224 of schedule 1 of Notification 1/2017 C Tax (Rate) dated 28.06.2017. 3.1 The Applicant was heard in person. They submitted Photos of raw material, printing and final product. They stated that they buy Nonwoven fabrics made of 100% polypropylene fiber which are classified under HSN 5603. They submitted input invoices, invoice for outward supply under the GST regime, write-up of manufacturing process. They also produced photo copies of Nonwoven bags manufactured by them and the raw material such as Nonwoven fabric roll for perusal. They stated that they sell their products to rice mills and the same is used for packaging only and not sold as Shopping bags or Carry bags. They stated that the goods are of 25 Kg, 5 Kg, 10 Kg capacity and all are sold at below ₹ 1000/- 3.2 All documents submitted were exa

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planation (iii) and (iv) to Notification No. 1 / 2017 – Central Tax (Rate) dt. 28-06-2017, tariff heading, sub-heading, heading and chapter shall mean respectively a tariff item, sub-heading, heading and chapter as specified in the First Schedule to the Customs Tariff Act, 1975 and the rules for the interpretation of the First Schedule to the Customs Tariff Act, 1975, including the Section and Chapter Notes and the General Explanatory Notes of the First Schedule shall be applied for the interpretation and classification of goods. Applying this Rule, the Description of Chapter Heading 6305 is as follows: Sacks and bags, of a kind used for the packing of goods and more specifically, 6305 33 00, states as follows: Of man-made textile materials: Other, of polyethylene or polypropylene strip or the like Further, Explanatory Notes to the Heading 6305, is as follows: 63.05 Sacks And Bags, Of A Kind Used For The Packing Of Goods (+), 630510 – Of jute or of other textile bast fibres of heading

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2018 (10) TMI 1052 – AUTHORITY FOR ADVANCE RULING, TAMILNADU – TMI – Application for withdrawal of advance ruling application – Whether entry 7 (i) covers canteens located in any establishment and Circular No. 28/02/2018-GST applies to canteens located in any type of establishment and liable to 5% GST vide Notification No. 11/2017-CT (Rate) as amended vide notification No. 46/2017-CT (Rate) dated 14.11.2017?
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The application filed by the Applicant for advance ruling is dismissed as withdrawn. – 11/AAR/2018 Dated:- 27-9-2018 – Ms. Manasa Gangotri Kata, Member, And Thiru S. Vijayakumar, Member ORDER Note: Any appeal against the advance ruling order shall be filed before the Tamil Nadu State Appellate Authority for Advance Ruling, Chennai under Sub-section (1) of Section 100 of CGST ACT/TNGST Act 2017 within 30 days from the date on which the ruling sought to be appealed against is communicated At the outset, we would like to make it clear that the provisions of both the Central Go

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any establishment and Circular No. 28/02/2018-GST applies to canteens located in any type of establishment and liable to 5% GST vide Notification No. 11/2017-CT (Rate) as amended vide notification No. 46/2017-CT (Rate) dated 14.11.2017 2.0 Sodexo have stated that they operate in India under three legal entities, Sodexo Foods Solutions India Private Limited (hereinafter referred to as applicant), Sodexo Facilities Management Services India Private Limited, and Sodexo Technical Services India Private Limited (collectively referred to as 'Sodexo India). Sodexo is interalia engaged in providing the following services: B2B contracts with corporate customers for operation and management of canteens, cafeteria's at their premises, wherein sodexo provides the services of cooking, preparing, serving of food and beverages at the premises of the customer; The consideration for services is charged to the corporate customers on a per plate basis; The contracts are for providing services on

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and beverages to the consumers who visit the canteens / cafeteria as per the orders placed by the consumers and they charge the consumers as per the price menu and food and beverages ordered by the consumers. 2.1 As per recent Notification No. 46/2017- Central Tax (Rate) dated 14th November 2017, entry no. 7 (i), there has been a change in the GST rate from 18% to 5% with effective from 15th November 2017, in respect of supply of food and / or beverages by restaurant, eating joint including mess, canteen other than those located in the premises of having rooms with declared tariff of ₹ 7,500 per day or more. Accordingly, the implication of such amendment in the GST rate for services provided by a restaurant, eating joint, including mess canteen which do not have rooms with declared tariff of ₹ 7,500 or more per day has been reduced to 5% (with no input tax credit to the service provider). Further, the CBEC (TRU) has issued circular no. 28/02/2018-GST dated 8th January 2018

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ages by way of or as a part of a service in outdoor catering'. In the press release issued by the Government along with this amendment, it has been stated that 'Outdoor catering continue to be at 18% with full ITC'. 2.2 Sodexo have stated that the option to pay 5% GST without ITC by restaurants, eating joints, mess and canteens and the 18% GST rate for outdoor catering services seems to be simultaneously prescribed. Especially when the customers are not entitled to avail ITC of the GST charged by Sodexo, the clients are insisting that since the services are provided in canteens the appropriate rate of tax is 5%. Sodexo has a huge interest in knowing the correctness of the rate to be charged since GST is a pass through tax and the differential of 13% if not received from clients could spell disaster for the company. 2.3 Sodexo have further stated that, in the normal course, "outdoor catering" means ordering of food along with service thereof on the occasion of some

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nion of India reported in 2004-TIOL-36-SC-ST, wherein vide Para 56, it had held the following in the case of Outdoor Caterers; "Outdoor catering has an element of personalized service provided to the customer. Clearly the service elements is more weighty, visible and predominant in the case of outdoor catering. It cannot be considered as a case of sale of food and drink as in restaurant". 2.4 Sodexo have further stated that on examining the classification of Food Services under the General Tariff Schedule under GST, it can be seen that Group 99633 deal with Food, Edible Preparations, Alcoholic and Non-alcoholic beverages serving services.; There are 8 sub categories under this group.; The First set comprising of 996331 to 996333 deal with services provided by Restaurants, café's, eating facilities including take away, room services and door deliver; Hotel, Inn, guest house, club and the like; canteen and other similar establishments.; These three sub entries featur

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ons where food is prepared and served on a continuous basis. The gradation as restaurant, cafe, canteen, hotel etc. are just finer efficacies meeting the specific type of dispensation but the basic Rule of food getting prepared and served in that location on a continuous basis remains constant. The design of the Group under the GST Tariff appears to have clarity and even an unintended overlap stands avoided. It is a well settled principle of interpretation that in case of competing entries, specific would prevail over general and consequently canteen even if held to be outdoor caterer would continue to fall under 7 (i) instead of getting it consigned to 7 (v) of the Notification. 2.5 GST rate of 5% extended to Educational Institutions vide Circular of 8 Jan 2018 is violative of Article 301 of the Constitution of India. Circular No. 28/02/2018-GS'I' dated 8th January 2018 read with Corrigendum issued on 18th January 2018 has clarified that GST shall be applicable at 5% under ent

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ch a differentiation is violative of Article 301 of the Constitution. ; In this regard, they refer to the decision of the Supreme Court of India in Firm A.T.B. Mehtab Majid vs State of Madras and And wherein the Hon'ble Court has clearly laid down that any taxation that is discriminatory in nature will offend Article 301.; They have claimed that in view of the above, it would be critical to clarify that supply of food and beverages in factory canteens, offices, hospitals, offshore rigs by services providers such as Sodexo should also attract 5% GST so that there is no discrimination in the GST tax structure for supply of food and drinks in the normal course of trade, commerce and intercourse across the territory of India. 3.0 The applicant was heard in person. They stated that they have contracts with various institutions.; they have contracts with them for making food at client premises; in certain cases, the payment is received from visitors to premises, in other cases payment is

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2018 (10) TMI 1053 – AUTHORITY FOR ADVANCE RULING, TAMILNADU – 2018 (18) G. S. T. L. 560 (A. A. R. – GST) – Rate of tax – Electrical Wiring Harness – Whether the Electrical Wiring Harness, primarily an electrical wire with connectors at both ends, manufactured by the Applicant falls under HSN tariff item 8544 for which the rate prescribed vide Notification No. 01/2017 – Central Tax (Rate) dated 28th June 2017 read with 41/2017 – Central Tax (Rate) dated 14th November 2017 is 9%? – whether the said rate of Central tax of 9% is applicable to the above product with effect from 1st July 2017?
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Held that:- The Applicant is engaged in the manufacture of Electrical Wiring Harness Assembles consisting of insulated wires and cables with connectors used in brake systems and related parts for heavy vehicles such as bus, trucks and other such commercial vehicles; They have been supplying the Electrical Wiring Harness to their customers such as major automobile manufacturers and in the retail

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hedule III was modified as 'Insulated (including enameled or anodized) wire, cable (including co-axial cable) and other insulated electric conductors, whether or not fitted with connectors; optical fibre cables, made up of individually sheathed fibres, whether or not assembled with electric conductors or fitted with connectors'.
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Thus, the ‘Electrical Wiring Harness manufactured by the Applicant, was subjected to tax @ 14% CGST and 14% SGST for the period from 01.07.2017 to 14.11.2017 and thereon, the tax rate is reduced to 9% CGST and 9% SGST.
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Ruling:- The Electrical Wiring Harness manufactured by the Applicant falls under the HSN tariff item No. 85443000 for which the rate prescribed is 14% CGST for the period from 01.07.2017 to 14.11.2017 and from 15.11.2()17, the rate of tax is 9% CGST under Sl.No. 395 of Schedule III of Notification No. 01/2017-C.T. (Rate) dated 28th June 2017 and 9% SGST under Sl.No. 395 of Schedule 111 of G.O. (Ms) No. 62 dated 29.06.2017 No. II(2)/CT

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Road: Ambattur Industrial Estate, Chennai, Tamilnadu – 600 093 (hereinafter called as WABCO or AppIicant ) is a limited company engaged in the manufacture of brake systems and related parts for heavy vehicles. They are registered under Goods and Service Tax (GST) vide Registration no. 33AAFCA6421P1ZK. The applicant has submitted the copy of application in Form GST ARA – 01 and also submitted a copy of Challan evidencing payment of application fees of ₹ 5,000/-each under sub-rule (1) of Rule 104 of CGST rules 2017 and SGST Rules 2017. WABCO, manufacture inter-alia, a product named Electrical Wiring Harness . WABCO has sought advance ruling on the following: 1. Whether the Electrical Wiring Harness, primarily an electrical wire with connectors at both ends, manufactured by the Applicant falls under the HSN tariff item 8544 for which the rate prescribed vide Notification no 1/2017 -Central tax (Rate) dated 28 June 2017 read with 41/2017 -Central tax (Rate) dated 14th November 2017

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rical Wiring Harness for vehicle will be classified more specifically under tariff item 85443000 Ignition wiring sets and other wiring sets of a kind used in vehicles, aircraft or ships and 854442 fitted with connectors and not under tariff item 8708 as parts and accessories of motor vehicles of heading 88701 to 8705 ; that as per Note 2 to Section XVII in Explanatory Notes for Harmonized Commodity Description and Coding System , which covers Chapter 86 to 89, the expression parts and accessories do not apply to electrical machinery or equipment (chapter 85);they are also excluded from parts and accessories as per General Explanatory Notes to Section XVII as Electrical Harness is specifically covered elsewhere. 2.2 They stated that they are supplying the Electrical Wiring Harness to their customers such as major automobile manufacturers and in the retail segment through their distributors.; The supply has been made under invoices with CGST of 14% as per Sl no 161 of Schedule IV of Noti

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to the applied. 3. The Authorized Representative of the Applicant was heard in the matter. They stated that the Electrical Wiring Harness are to be classified under 8544 as per Customs Tariff and HSN explanatory Notes. They had stated that Notification No. 01/2017 has tariff 8544 under Schedule Ill presently and under Schedule IV till its amendment in November 2017, when tariff 8544 figures only in Schedule III. They stated that their goods are wiring harness which will fit the description of 8544.30 as other wiring sets used in vehicles as this is used in brakes. They stated that the notification rate of 9% should be applicable from 01/07/2017 onwards. They submitted write up on the product, images, invoices pre-and post GST. They also submitted Circular 25/88 Cx dated 17.11.1988 issued by CBEC on classification of wiring harness as under 8544. 4. The documents submitted by the Applicant have been examined. It is seen that a wiring harness is a set of wires, terminals and connectors t

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said rate of Central tax of 9% is applicable to the above product with effect from 1st July 2017. 5.1 From the various submissions of the Applicant, it is seen that the Applicant is engaged in the manufacture of Electrical Wiring Harness Assembles consisting of insulated wires and cables with connectors used in brake systems and related parts for heavy vehicles such as bus, trucks and other such commercial vehicles; They have been supplying the Electrical Wiring Harness to their customers such as major automobile manufacturers and in the retail segment through their distributors. 5.2 In terms of explanation (iii) and (iv) to Notification No. 1/2017 – Central Tax (Rate) dt. 28-06-2017, tariff heading, sub-heading, heading and chapter shall mean respectively a tariff item, sub-heading, heading and chapter as specified in the First Schedule to the Customs Tariff Act, 1975 and the rules for the interpretation of the First Schedule to the Customs Tariff Act, 1975, including the Section and

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lated, this heading covers electric wire, cable and other conductors(e.g. braids, strips, bars) used as conductors in electrical machinery, apparatus or installations. . …Wires, cable etc, remain classified in this heading if cut to length or fitted with connectors(e.g. plugs, sockets, lugs, jacks, sleeves or terminals) at one or both ends. The heading also includes wire etc. of the types described above made up in sets (e.g. multiple cables for connecting motor vehicle sparking plugs to the distributor). The applicant manufactures Electrical Wiring Harness which are insulated wires and cables with connectors which is used in automobile Industry and therefore it is to be seen that they are to be classified under HSN 85443000. It is true that the items are parts of motor vehicles. Section note 2 to Section XVII covering chapter 87, is as follows: 2. The expressions parts and parts and accessories do not apply to the following articles, whether or not they are identifiable as for the g

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ling under Tariff heading 8544 is mentioned at Sl. No. 395 of Schedule 111 and S.N0.161 of Schedule IV of Notification No. 1/2017-C.T.(Rate) dated 28.06.2()17, which are reproduced below: Sl. No. Chapter/Heading /Sub-heading/ Tariff item Description of Goods Rate 161 of Schedule IV 8544 Insulated (including enamelled or anodised) wire, cable and other insulated electric conductors, whether or not fitted with connectors [other than Winding Wires; Coaxial cables; Optical Fiber] 14 395 of Schedule III 8544 Winding Wires; Coaxial cables; Optical Fiber 9 The product in question is an Electrical Wiring Harness set falling under 85443000. Winding Wires, Coaxial cables and optical Fiber falls under Chapter Heading 854410, 854420 and 854470 respectively. Therefore, the product in question is covered under Sl.No. 161 of Schedule IV above of Notification No. 1/2017-C.T.(Rate) dated 28.06.2017 and G.O. (Ms) No. 62 dated 29.06.2017 No. Il(2)/CTR/532(d-4)/2017 and is subject to tax at the rate of 14

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2018 (10) TMI 1315 – AUTHORITY FOR ADVANCE RULINGS, TAMIL NADU – 2018 (19) G. S. T. L. 692 (A. A. R. – GST) – Levy of GST – Supply of services or not – activity of Liaison office – concept of distinct person and related person. – Whether liaison office is liable to pay GST? – Held that:- The applicant/liaison office is working as per the terms and conditions stipulated by RBI and the reimbursement of expenses & salary of employees is paid by Mls Takko Holding GmbH to the liaison office. No consideration for any activity is being charged by the liaison office and the liaison office does not have any business activities of its own as specified by RBI conditions.
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Further, Schedule I of CGST Act specifies that supply of services between related parties or distinct persons as per Section 25, even without consideration, constitute a supply.
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Takko is acting as an extension of the German Office in its procurement activities from suppliers in India as has been spelt out in the RBI

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h the Central Goods and Services Tax Act and the Tamil Nadu Goods and Services Tax Act are the same except for certain provisions. Therefore, unless a mention is specifically made to such dissimilar provisions, a reference to the Central Goods and Services Tax Act would also mean a reference to the same provisions under the Tamil Nadu Goods and Services Tax Act. Takko Holding GmbH is a company incorporated in Germany. They are permitted by RBI to have a Liaison Office of the company at 1/1 J-16, Thannerpandal Colony, Avinashi Road, Anupparpalayam, Tirupur-641652 (hereinafter referred to as Takko or the Applicant ) under certain conditions. Takko is not registered under GST. The applicant have submitted the copy of application in Form GST ARA-01 and also submitted a copy of Challan evidencing payment of application fees of ₹ 5,000/- each under sub-rule (1) of Rule 104 of CGST Rules, 2017 and SGST Rules, 2017. They have sought advance ruling on the following : (1) Whether liaison o

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ct in their own name without prior permission. No commission/fees be charged or any other remuneration received/income earned by the office in India for the liaison activities/services rendered by it or otherwise in India. 2.2 The activities of Takko are : (1) Order enquiries are received from German office and sent to the supplier in India for their price quote; (2) Prices are collected from various suppliers, and informed to German office; (3) German office confirms the order for the supplier with lowest price quote deliver terms; (4) The order production process are followed by Merchandising Department (collecting data for each stage of the progress till the execution of order) and communicated to German office; (5) The Quality Department audits/monitors the quality parameters of the merchandise on continuous basis until the final inspection of the merchandise & shipment and communicates with the Supplier and the German office; (6) The Shipping Department coordinates with G

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on from related persons or distinct persons as German Office and Liaison Office are not related person as there is only one legal entity and no relationship can be established. They are not a distinct person under Section 25 as distinct persons have establishments in more than one state or Union Territory. As per RBI terms and conditions, they are not engaged in any business or furtherance of business as they are only acting as communication channel between German office and Indian exporters. They are not permitted to obtain IE Code, raise invoice on German office and hence are not required to take registration under GST. 3.1 The Applicant was heard in person on 16.05.2018 and 2I.06.2018. They have stated that the Holding company procures Readymade garments based on designs given by them to manufacturers in Tirupur ; they do not have any financial transactions with such suppliers or sister firms around the world; the expenses of administration are paid by Germany office routed through

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dertake only the limited set of activities as listed in para 2.I above. No other activities are permitted and no consideration shall be charged for the liaison activities or any other activities in India. Liaison Office cannot render any consultancy or any services directly /indirectly with / without consideration. All expenses of the office are to be met only out of funds received from abroad. This is substantiated by the Statement of accounts, Annual Statement Form 49C filed under Income Tax Act, Bank Inward Remittance advice submitted by the Applicant. It is seen from the screenshots of online software supplied by the Applicant that all communication for the various liaison activities are undertaken through electronic means. The activities undertaken by the applicant include communicating to suppliers in India the order enquires received from German office, communicating to German office price quotes received, collecting order sheets and communicating to the concerned supplier. The

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Activities of a liaison office amount to supply of services? The above questions may be answered by first clarifying whether the liaison activities undertaken by the applicant amounts to a supply and then whether it is a taxable supply and whether the applicant should take registration under CGST /SGST Act. 4.2 In the case at hand, Takko are working as the liaison Office of M/s. Takko Holding GmbH, Germany with the prior permission of RBI. Liaison Activities include acting as communication channel between the parent company and Indian supplier of goods to parent company at Germany in terms of the procurement, order placement, quality checks, and technical support shipping of the Readymade garments. Takko is not receiving any consideration for this from the suppliers. Except this liaison work, this office in India would not undertake any activity of trading, commercial or industrial nature nor would they enter into any business contracts in its own name without RBIs prior permission. Th

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(b) import of seruices for a consideration whether or not in the course or furtherance of business; (c) the actiuities specified in Schedule I, made or agreed to be made ruithout a consideration; and (d) The actiuities to be treated as supply of goods or supplA of seruices as referred to in Schedule II. From the submissions made by the applicant as discussed in above paras, it is seen that the applicant/liaison office is working as per the terms and conditions stipulated by RBI and the reimbursement of expenses & salary of employees is paid by Mls Takko Holding GmbH to the liaison office. No consideration for any activity is being charged by the liaison office and the liaison office does not have any business activities of its own as specified by RBI conditions. Further, Schedule I of CGST Act specifies that supply of services between related parties or distinct persons as per Section 25, even without consideration, constitute a supply. Takko is acting as an extension of the German

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2018 (10) TMI 1338 – NATIONAL ANTI-PROFITEERING AUTHORITY – 2018 (17) G. S. T. L. 627 (N. A. P. A.) – Profiteering – restaurant service – failure to pass the benefit of reduced rate of GST – it was alleged that Respondent has not passed on the benefit of reduction in the rate of GST in restaurant service, when he had purchased “Hara Bhara Kabab Sub” – It was also alleged that the Respondent had increased the base price of the product from ₹ 130/- to ₹ 145/- when the GST was reduced from 18% to 5%.
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Benefit of rate reduction – Held that:- It is apparent from the facts of the case that the Respondent had increased the base price of his products to make good the loss which had occurred due to denial of ITC post GST rate reduction. It is further revealed that the Respondent had increased the average base price by 12.14% to neutralize the denial of ITC of 11.80% and such increase is commensurate with the increase in the cost of the product on account of denial of ITC. Ther

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eral of Safeguards (DGSG) now Director General Anti-Profiteering (DGAP) after detailed investigation under Rule 129 (6) of the Central Goods & Services Tax (CGST) Rules, 2017. The brief facts of the case are that an application dated 01.01.2018 was filed by the Applicant No. 1 before the Standing Committee constituted under Rule 123 (1) of the above Rules alleging that the Respondent has not passed on the benefit of reduction in the rate of GST in restaurant service, when he had purchased "6 Hara Bhara Kabab Sub" (here-in-after referred to as the product). It was also alleged that the Respondent had increased the base price of the product from ₹ 130/- to ₹ 145/- when the GST was reduced from 18% to 5%. Thus it was further alleged that the Respondent had indulged in profiteering in contravention of the provisions of Section 171 of CGST Act, 2017. 2. The above application was examined by the Standing Committee on AntiProfiteering and was referred to the DGAP vid

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on the goods and services used in supplying the service will not be allowed vide Notification No. 46/2017-Central Tax (Rate) dated 14.1 1.2017 with effect from 15.11.2017. The DGAP has also stated that on scrutiny of the GSTR-I, GSTR-3b and the ITC Register submitted by the Respondent, it was observed that ITC amounting to ₹ 13,01 ,759/- was available to the Respondent during the period from July, 2017 to November, 2017 which came to approximately 1 1.80% of the taxable value of the service amounting to ₹ 1,10,29,612/- supplied during the same period but when the tax was reduced from 18% to 5%, the said ITC was not available to the Respondent. The DGAP has further stated that the analysis of the invoice-wise outward taxable supplies for the period w.e.f. 15.1 1.2017 to 28.02.2018 revealed that the Respondent had increased the base prices ranging from 6% to 17% of the different items supplied as a part of restaurant service to make good the loss of ITC post GST rate reducti

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since the GST rate was reduced from 18% to 5% and the ITC was denied on the restaurant service supplied by the Respondent only w.e.f. 15.11.2017. He has further intimated that the Respondent had increased the base price to include the cost of input tax and also subjected the customers to GST at the higher rate of 18%, therefore, the unwarranted increase in base price and not passing on the benefit of ITC to the consumers amounted to profiteering by the Respondent. He has also contended that while the increase in the base price of 12.14% was not exactly equivalent to the denial of ITC to the extent of 11.80%, such increase in the base price was commensurate with the denial of ITC. He has further contended that in anticipation of reduction in the rate of GST and denial of ITC w.e.f. 15.11.2017 the Respondent had increased the base price of certain products and collected excess amount of ₹ 452/- on 14.11.2017 as a result of which consumers had to pay higher amount in the form of in

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r submitted that no ITC was being passed on by M/S Subway as the franchisee was free to buy the raw material from the local sources. They also stated that only the ingredients and the products to be served were decided by M/S Subway. 6. The DGAP was also asked to file reply on the ITC aspect of the pre and post GST, embedded tax aspect of the pre GST era of which credit was not allowed and to extend the investigation to other outlets and products of M/S Subway vide letter dated 1 1.06.2018. The DGAP vide his reply dated 26 June 2018 has stated that the application was filed in relation to the restaurant service supplied on 4.12.2017 and the GST rate on restaurant service had been reduced from 18% (with ITC) to 5% (without ITC) w.e.f. 15.11.2017 and therefore the investigation could not be extended to the period before 15.1 1.2017 and the ITC involvement in the pre GST valuation had not been considered relevant. The DGAP has further stated that there were approx. 600 outlet of M/S Subwa

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n the rate of tax on the restaurant service after 14.11.2017 and whether the benefit as emanating from such reduced tax rate has not been passed to the Applicant No. 1 in terms of the commensurate reduction in the price of the product purchased by him? ii. Whether profiteering of ₹ 452/- was made by the Respondent by selling 32 number of items on 14.11.2017 in Karelibaug outlet at increased base price? 9. It is apparent from the record that the GST on restaurant service has been reduced by the Central Government vide Notification No. 46/2017-Central Tax (Rate) dated 14.11.2017 from 18% to 5% and ITC has been disallowed. It is also revealed that the Applicant No. 1 in his application dated 01.01.2018 had stated that he had purchased Hara Bhara Kabab from the Respondent who had increased the base price of the product from ₹ 130/- to ₹ 145/- and had denied the benefit of rate reduction to him. He had also submitted copy of the tax invoice dated 04.12.2017 and the leaflet

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2018 (11) TMI 173 – CESTAT HYDERABAD – 2018 (19) G. S. T. L. 645 (Tri. – Hyd.) – Levy of service tax – Collection of taxes for the Central Government and the Government of State and the commission received for such collection from those Governments – Held that:- The services are neither sale or marketing of goods nor promoting or marketing of services or any customer care services. In fact, collection of tax is neither a sale of good nor rendering of service. It is a compulsory payment which is collected by law from everyone by the State and the tax payer is not the customer or the client of the Government. It is in this compulsory collection of money in the form of tax, the appellant is assisting the Government of India and the State Government and is getting paid for the same – by no stretch of imagination can collection of taxes be called a business auxiliary service within the definition as per Sec. 65 (9) – demand set aside.
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Levy of service tax – Sale of Government of India

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ial services” – the demand made on sale of credit cards under the head of ‘business auxiliary services’ does not sustain.
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Whether the appellant has been issued show cause notice without jurisdiction as the head office of the appellant banking company had not rendered the services but their branches did? – Held that:- The assessee opted for centralized registration for some other services and has been discharging service tax accordingly. As far as the alleged four taxable services are considered, they have not paid any service tax. Having opted for centralized registration the appellant cannot now argue that their head office has no role in providing the services and hence cannot be issued a show cause notice. It is not the case of the appellant that their branch offices are separately registered with the department for the alleged services rendered – there is no force in the arguments of the appellant that the show cause notice was issued without jurisdiction.
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respect of merchant banking services. The Director General of Central Excise Intelligence conducted investigation and found that the appellant has been rendering services and receiving amounts in respect of the following: (i) Collection of taxes on behalf of Central Government & Government of State. (ii) Sale of Government of India Bonds. (iii) Sale of mutual fund units of SBI. (iv) Sale of credit cards of SBI. 2. After collecting necessary details from the appellant and investigating the matter a show cause notice dated 03.03.2008 was issued to the appellant covering the period 01.07.2003 to 09.09.2004 demanding service tax under the head business auxiliary services in respect of the above four activities. It was also proposed to recover interest under Sec. 75 and impose penalties under Sec. 76, 77 & 78 of the Finance Act, 1994. The appellant contested the show cause notice before the original authority both on merits as well as on limitation. Appellant further argued that th

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intention to evade tax. (c) The show cause notice was issued without jurisdiction to the head office of the appellant bank. (d) Learned Commissioner erred in confirming the demand on the appellant bank without jurisdiction. (e) The sale of mutual fund units and Government of India Bonds during the relevant period was exempt from tax under Notification No. 13/2003 dated 20.06.2003. These mutual funds and Government of India Bonds are goods and the commission received on sale of goods was exempted vide the aforesaid notification. (f) Services rendered in relation to sale of credit cards are taxable only w.e.f. 01.05.2006. (g) Learned Commissioner erred in calculating service tax on total amount received which must be taken as inclusive of service tax amount. The penalties have been wrongly imposed by the learned Commissioner. 4. Learned counsel for the appellant submits that they are contesting the demand on merits, on limitation as well as on the jurisdiction. The sale of mutual funds a

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re as follows: 1) Whether service tax is chargeable during the relevant period on a. Collection of taxes for the Central Government and the Government of State and the commission received for such collection from those Governments. b. Sale of Government of India Bonds and commission received from RBI for such sale. c. Sale of credit cards of SBI (Issuing Bank) and the commission received from SBI for such sale. d. Sale of mutual funds of SBI and the commission received for such sale from SBI. 2) Whether extended period of limitation is invokable in this regard. 3) Whether the appellant has been issued show cause notice without jurisdiction as the head office of the appellant banking company had not rendered the services but their branches did. 4) Whether interest is recoverable and penalty is imposable under Sec. 76, 77 & 78 of the Finance Act, 1994. 7. Coming to the question of jurisdiction in issuing the show cause notice, we find that the assessee opted for centralized registrat

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ved is July 2003 to 09.07.2004. Identical issue came up before the Tribunal in the case of P.N. Vijay Financial Services (P) Ltd. Wherein the Bench held that sale and purchase of mutual funds is covered under notification No. 13/2003-ST and hence any commission received for such activity, no tax is payable. The same view was expressed by the Tribunal in the case of Geojit Financial Services Ltd. Therefore, we find no reason to deviate from such a view already taken. 9. As regards the commission received on collection of telephone bills, we find that the period involved is July 2003 to 09.09.2004. Hon ble Supreme Court in the case of Federal Bank Limited has categorically held that services provided by banks for collection of telephone bills, insurance premium on behalf of the client companies have to be considered as cash management service and cannot be considered under the category of business auxiliary services. On the face of such a categorical law being pronounced by Hon ble Apex

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lready taken. 8. In view of the above, we find no reason to take a different view in this case and we hold that the service of sale of Government of India bonds is not a service and there is no tax liability. As far as the sale of mutual funds is concerned, same has been covered by exemption notification 13/2003-ST as the commission received on sale of goods was exempted. The term good includes mutual funds as the same are movable property. As far as the collection of taxes on behalf of the Central Government and State Government is concerned, it is the argument of the revenue that these amount to business auxiliary services in terms of Sec. 65 (9) (iv). This clause defines business auxiliary services as any incidental or auxiliary support service such as billing, issue or collection or recovery of cheques, accounts and remittances, evaluation of prospective customer and public relation services and includes services as a commission agent but does not include technology service . In or

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y collection of money in the form of tax, the appellant is assisting the Government of India and the State Government and is getting paid for the same. Therefore, we are of the considered view that by no stretch of imagination can collection of taxes be called a business auxiliary service within the definition as per Sec. 65 (9). As far as the sale of credit cards is concerned, credit card services were part of the banking and other financial services w.e.f. 14.05.2003. But w.e.f. 01.05.2006 separate entry has been made for credit card services comprehensively covering credit card, debit card, charge card or other payment card services . This service included any service provided by any person to an issuing bank in relation to such card business including receipt or process of an application, transfer of embossing data to issuing bank s personalisation agency, ATM PIN generation, renewal or replacement of card, change of address, enhancement of credit limit, payment updation and statem

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REGARDING GSTR-3B. – GST – States – ORDER NO. 29 – Dated:- 27-9-2018 – Enclosed KA.NI.-2-1884/XI-9(47)/17-U.P. Act-1-2017, – Circular – Trade Notice – Public Notice – Instructions – Office orders

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2018 (11) TMI 834 – CESTAT HYDERABAD – TMI – SSI Exemption – use of brand name of others – earning commission for promotion by way of marketing and selling of branded goods under the brand name/trade name viz., BATA on behalf of their principals M/s Bata India Ltd. – case of appellant is that the said commission is less than threshold limit under the Notification No. 06/2005-ST and 33/2012 it is not taxable.
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Held that:- Services rendered by the appellant is to Bata India Limited and get paid for such services; appellant is not into rendering of any branded services to customers, who purchase only branded footwear from the outlet. In this situation, the argument of the Revenue that services rendered by the appellant being in the Bata showroom are taxable services provided by a person under a brand name or trade name it cannot be held so.
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Similar issue decided in the case of Commissioner of Central Excise, Chandigarh Vs. A.S. Financial [2014 (7) TMI 746 – CESTAT NEW DELHI],

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lant (s) Respondent(s) Impugned Order 1. ST/27655/2013 Anusha Enterprises CC, CE, Visakhapatnam -II OIA No. 22/2013 (VII) ST dated 17.05.2013 2. ST/30254/2016 -dodo- OIA No. VIZ-EXCUS-002-APP-048-15-16, dated 28.10.2015 3. ST/31131/2017 -dodo- CCT, Visakhapatnam – GST OIA No. VIZ-EXCUS- 002-APP-026-17-18 dated 30.06.2017 4. ST/30459/2018 -dodo- OIA No. VIZ-EXCUS- 002-APP-116-17-18 dated 08.02.2018 3. Brief facts of the case are that the appellant is engaged in marketing of Bata brand footwear on commission basis. Investigation was launched and it was found that the appellant was earning commission for promotion by way of marketing and selling of branded goods under the brand name/trade name viz., BATA on behalf of their principals M/s Bata India Ltd. The Department viewed the appellant s service as a Commission agent was covered under Business Auxiliary service/Taxable service and is liable for payment of service tax under the provisions of the Finance Act, 1994. Show cause notice vide

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greed commission of 7% of the retail sale price, the total price of which for the previous year was less than ₹ 10 lakhs and therefore entitled to the benefit of SSI threshold exemption available under Notification No. 33/2012-ST dated 20.06.2012; that in order to constitute a service as one rendered under a brand name, the same needs to be a service provided using a brand name belonging to one person and the service recipient should be a person other than the brand name holder. In their case, they are not providing any service to a third person, under the brand name of BATA ; that penalties cannot be imposed, even if the issue of taxability is ultimately decided against them, as they are under the bonafide belief that they are not liable to pay service tax; They relied upon the decision of Hon ble CESTAT in Peoples Automobiles Ltd., Vs. CCE, Kanpur [2011 (24) STR 635 (Tri- Del)] and Gagandeep Singh Vs. CCE, Delhi [2012-TIOL-142-CESTAT-Del.]. 3.2 The Adjudicating Authority intera

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ate of one percent per month of the demand, whichever is higher under Section 76 of the Act. The lower authority further imposed a penalty of ₹ 10,000/- under Section 77(1)(a) for failure to obtain registration and thus violating Section 69; and penalty of ₹ 10,000/- under Section 77(2) of the Act, for failure to furnish ST-3 returns mandated by Section 70 of the Act. 4. Aggrieved by such an order, appellant preferred an appeal before the First Appellant Authority. In all these cases, the First Appellate Authority held the order of the Adjudicating Authority. Hence this appeal. 5. Learned Counsel appeared for the appellant after narrating the factual matrix and the services rendered by the appellant, submits that appellant is claiming the benefit of small scale service provider exemption granted to them under Notification No. 06/2005 as amended and Notification No. 33/2012. It is her submission that the entire issue involved in all these appeals is during the period from 20

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on, the tax liability confirmed denying the benefit of exemption notification is not in accordance with the law is settled in various forums. She relies upon the various decisions, Peoples Automobiles Ltd., [2011 (24) STR 635], MRS Jaspreet Kaur & MR Gagandeep Singh Vs. CCE, Delhi [2012-TIOL-142-CESTAT-Del.], Bakliwal Brothers Vs. CCE, Raipur [2017 (51) STR 7] and Commissioner of Central Excise, Chandigarh Vs. A.S. Financial [2015 (37) STR 400]. She submits that the issue new squarely covered in their favour. 6. Learned Departmental Representative reads the findings of the First Appellate Authority and submits that the services rendered by the appellant are undisputedly taxable. It is his submission that the findings of the First Appellate Authority that in the instant case appellant title is M/s Anusha Enterprises is succeeded by the words Bata Shoe Stores , invoices for sale are in the name of Bata as per the show cause notice. It is his submission that the First Appellate Author

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t is necessary in the public interest so to do, hereby exempts taxable services of aggregate value not exceeding four lakh rupees in any financial year from the whole of the service tax leviable thereon under section 66 of the said Finance Act: Provided that nothing contained in this notification shall apply to, – (i) Taxable services provided by a person under a brand name or trade name, whether registered or not, of another person; or (ii) Such value of taxable services in respect of which service tax shall be paid by such person and in such manner as specified under sub-section (2) of section 68 of the said Finance Act read with Service Tax Rules, 1994. 9. After considering the submissions made, it is seen from the proviso 1(i) on which reliance placed by the Revenue, we find that in the case in hand, services rendered by the appellant is to Bata India Limited and get paid for such services; appellant is not into rendering of any branded services to customers, who purchase only bran

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nt during each financial year, during the period of dispute, is less than ₹ 4 Lakhs. The only point of dispute is as to whether the respondent are eligible for small scale provider exemption under Notification No. 6/2005-S.T. and in this regard, the only point of dispute is as to whether the respondent were providing the Business Auxiliary Service to their client ICICI Bank Ltd. under brand name of another person, as if the service being provided by a small service provider is under the brand name of another person, the exemption under Notification No. 6/2005-S.T. would not be available. In this regard, the department s contention is that from the various clauses in the respondent s agreement with the ICICI Bank Ltd., it is clear that the marketing services and customers assistance services being provided by the respondent to the ICICI Bank Ltd. is under the brand name of the ICICI Bank and in this regard, the department refers to Clause 2, Clause 6 and Clause 10 of the responden

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e available to the respondent the advertisement materials including posters, leaflets, displays, flyers, stickers, signs, cards, which the respondent shall prominently display, maintain and distribute at their own expenses. In our view, there is nothing in the above clauses from which it can be inferred that the respondent were providing the Business Auxiliary Services to ICICI Bank Ltd. under the brand name of ICICI Bank Ltd. Just promoting the service products of ICICI Bank Ltd. and for this purpose, using the advertisement and publicity materials, etc. provided by the ICICI Bank Ltd., or displaying the banners with the words Franchise of ICICI Bank Ltd. on their premises would not mean that the respondent are providing the Business Auxiliary Services of marketing to their client ICICI Bank under the brand name of ICICI Bank Service provided by the Respondent is Business Auxiliary Service of promoting and marketing the services being provided by ICICI Bank Ltd. and the services being

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findings in the case of A.S. Financial, the respondent was specifically providing the marketing services and display banners and equipments and other items were of the expenses of A.S. Financial. The issue involved in this case in hand by squarely covered by the above said ratio and we find no reason to deviate from such a view already taken. 11. Similar views were expressed by the various Benches as per the laws cited herein above. Another case law, which is similar to the issue involved, is Bakliwal Brothers Vs. CCE, Raipur (supra) wherein, the appellant was having a shop and activity of promoting sale of Koutons brand of readymade garments. The bench again held that such activity is not taxable, benefit of exemption for small scale service providers is available. 12. In view of the foregoing, we hold that the all impugned orders are unsustainable and liable to be set aside and we do so. The impugned orders are set aside and the appeals are allowed. (Order pronounced & dictated

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Governor is pleased to allow to appoint the 1st day of October, 2018, as the date on which the provisions of section 52 of the Uttarakhand Goods and Services Tax Act, 2017 shall come into force. – GST – States – 859/2018/16(120)/XXVII(8)/CT-51 – Dated:- 27-9-2018 – Government of Uttarakhand Finance Section-8 NOTIFICATION September 27, 2018 No. 859/2018/16(120)/XXVII(8)/CT-51 -WHEREAS the State Government is satisfied that it is expedient so to do in public interest, Now THEREFORE, in exercise of

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GST – States – 853/2018/10(120)/XXVII(8)/2018/CT-41 – Dated:- 27-9-2018 – Government of Uttarakhand Finance Section-8 NOTIFICATION September 27, 2018 No. 853/2018/10(120)/XXVII(8)/2018/CT-41-WHEREAS, the State Government is satisfied that it is expedient so to do in public intersest; Now THEREFORE, in exercise of the powers conferred by section 128 of the Uttarakhand Goods and Services Tax Act, 2017 (06 of 2017), the Governor, on the recommendations of the Council, is pleased to allow to waive

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GST – States – 857/2018/16(120)/XXVII(8)/2018/CT-49 – Dated:- 27-9-2018 – Government of Uttarakhand Finance Section-8 NOTIFICATION September 27, 2018 No. 857/2018/16(120)/XXVII(8)/2018/CT-49 – In exercise of the powers conferred by section 164 of the Uttarakhand Goods and Services Tax Act, 2017 (06 of 2017) read with section 21 of Uttar Pradesh General Clause Act, 1904 (Act No. 1 of 1904) (as applicable in the State of Uttarakhand), the Governor is pleased to make the following rules to further amend the Uttarakhand Goads and Services Tax Rules, 2017, namely:- The Uttarakhand Goods and Services Tax (Tenth Amendment) Rules, 2018 1. Short title and Commencement (1) These rules may be called the Uttarakhand Goods and Services Tax (Tenth Amendment) Rules, 2018. (2) They shall come into force from the 13th day of September, 2018. 2. Insertion of FORM In Forms of the Uttarakhand Goods and Services Tax Rules, 2017 (hereinafter referred to as the principal rules), after FORM GSTR-9A, the foll

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nt but are not permissible under GST (+) G Turnover from April 2017 to June 2017 (-) H Un-billed revenue at the end of Financial Year (-) I Un-adjusted Advances at the beginning of the Financial Year (-) J Credit notes accounted for in the audited Annual (-) Financial Statement but are not permissible 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 turn

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gt; <Auto> <Auto> Total amount paid as declared in Annual Return (GSTR 9) Un-reconciled payment of amount PT 1 10 Reasons for un-reconciled payment of amount A B C Reason 1 <<Text>> Reason 2 <<Text>> Reason 3 <<Text>> 11 Additional 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.IV Reconciliation of Input Tax Credit (ITC) 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 avai

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nse 2 R Total amount of eligible ITC availed <<Auto>> S ITC claimed in Annual Return (GSTR9) T Un-reconciled ITC ITC 2 15 Reasons for un – reconciled difference in ITC A Reason 1 <<Text>> B C Reason 2 <<Text>> Reason 3 <<Text>> 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

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with the turnover as declared in the Annual Return furnished in FORM GSTR-9 for this GSTIN. The instructions to fill this part are as follows :- Table No. Instructions 5A The turnover 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 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

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here. 5F Trade discounts which are accounted for in the audited Annual Financial Statement but on which GST was leviable(being not permissible) shall be declared here. 5G Turnover included in the audited Annual Financial Statement for April 2017 to June 2017 shall be declared here. 5H Unbilled 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 Uttarakhand GST 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

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between the turnover reported in the Annual Return (GSTR-9) and turnover reported in the audited Annual Financial Statement due to reasons not listed above shall be declared here. 5Q Annual turnover as declared in the Annual Return (GSTR 9) shall be declared here. This turnover may be derived from Sr. No. 5N, 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 (includin

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(GSTR9). The instructions to fill this part are as follows :- Table No. Instructions 9 The table provides for reconciliation of tax paid as per reconciliation statement and amount of tax paid as declared in Annual Return (GSTR 9). Under the head labelled RC supplies where tax was paid on reverse charge basis 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 (GSTR-9) shall be declared here. It should also contain any differential tax paid on Table 10 or 11 of the Annual Return (GSTR 9). 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 reconc

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cial Year 2017-18. 12C Any ITC which has been booked in the audited Annual Financial Statement of the current financial year but the same has not been credited to the ITC ledger for the said financial year shall be declared here. 12D ITC availed as per audited Annual Financial Statement or books of accounts 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 (Table12E) 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 Statem

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shall also recommend if there is any other amount to be paid for supplies not included in the Annual Return. Any refund which has been erroneously taken and shall be paid back to the Government shall also be declared in this table. Lastly, any other outstanding demands which is recommended to be settled 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-9-C) 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 ……&

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3. (b) *I/we further report that, – (A) *I/we have obtained all the information and explanations which, to the best of *my/our knowledge and belief, were necessary for the purpose of the audit/ information and explanations which, to the best of *my/our knowledge and belief, were necessary for the purpose of the audit were not 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 th

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hellip;………………………………………………………… ……………………………………… ……………………………………… **(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

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the period beginning from ……..…to ending on ………, and (d) documents declared by the said Act to be part of, or annexed to, the *profit and loss account/income and expenditure account and balance sheet. 2. I/we report that the said registered person- *has maintained the books of accounts, records and documents as required by the IGST/CGST/ Uttarakhand GST Act, 2017 and the rules/notifications made/issued thereunder *has not maintained the following accounts/records/documents as required by the IGST/CGST/ Uttarakhand GST 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 Uttarakhand GST Act and Reconciliation Statement required to be furnished under section 44(2) of the Uttarakhand 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 d

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GST – States – 855/2018/15(120)/XXVII(8)/2018/CT-48 – Dated:- 27-9-2018 – Government of Uttarakhand Finance Section-8 NOTIFICATION September 27, 2018 No. 855/2018/15(120)/XXVII(8)/2018/CT-48 – In exercise of the powers conferred by section 164 of the Uttarakhand Goods and Services Tax Act, 2017 (06 of 2017) read with section 21 of Uttar Pradesh General Clause Act, 1904 (Act No. 1 of 1904) (as applicable in the State of Uttarakhand), the Governor is pleased to make the following rules to further amend the Uttarakhand Goods and Services Tax Rules, 2017, namely:- The Uttarakhand Goods and Services Tax (Ninth Amendment) Rules, 2018 1. Short title and Commencement 1 . These rules may be called the Uttarakhand Goods and Services Tax (Ninth Amend

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GST – States – 853/2018/10(120)/XXVII(8)/2018/CT-41 – Dated:- 27-9-2018 – Government of Uttarakhand Finance Section-8 NOTIFICATION September 27, 2018 No. 853/2018/10(120)/XXVII(8)/2018/CT-41 – WHERES, the State Government is satisfied that it is expedient so to do in public interest, Now THEREFORE, in exercise of the powers conferred by section 128 of the Uttarakhand Goods and Services Tax Act, 2017 (06 of 2017), the Governor, on the recommendations oi the Council, is pleased to allow to waive

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2018 (12) TMI 532 – AUTHORITY FOR ADVANCE RULING, MAHARASHTRA – 2019 (20) G. S. T. L. 498 (A. A. R. – GST) – Levy of GST – Separate registration is required or not – raising of invoice from Mumbai Head Office for imports received at Haldia Port Kolkata where there is no separate GST Registration – place of supply – mention of GSTIN of Mumbai and Dispatch place of Haldia Port in e-way bill – Held that:- Firstly, since the applicant will be importing the goods into India as per Section 7(2) of the IGST Act, 2017, such supply of goods imported into India shall be treated as supply of goods in the course of Inter State Trade or commerce – Secondly in respect of goods imported into India, as per Section 11(a) Of the IGST Act, 2017, the place of supply shall be the location of the importer and in the present case since the importer is registered in Mumbai, the place of supply shall be Mumbai, Maharashtra.
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In the present case, the place of supply is the location of the importer who is

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orter the place of supply for the applicant in this case will be Mumbai, and the goods also will be cleared on the name of the Mumbai registered address while paying IGST at the time of Customs Clearance, it would follow that they can do the further transaction mentioning the GSTIN of their Mumbai office – they can do the transaction on Mumbai Head Office GSTIN and can mention the GSTIN of Mumbai Head Office in the E-way Bill and dispatch place as Customs Warehouse, Kolkata.
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Ruling:- The procedure to raise the invoice from Mumbai Head Office for imports received at Haldia Port Kolkata where there is no separate GST Registration and Charging of IGST from Mumbai to our Customers is correct – For this transaction, no separate registration in the State of West Bengal is required.
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It is correct to Mention the GSTIN of Mumbai and Dispatch place of Haldia Port in e-way bill. – GST-ARA-48/2018-19/B-123 Dated:- 27-9-2018 – SHRI B.V. BORHADE, AND SHRI PANKAJ KUMAR, MEMBER PROCEEDIN

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ace of Haldia Port ? At the outset, we would like to make it clear that the provisions of both the CGST Act and the MGST Act are the same except for certain provisions. Therefore, unless a mention is specifically made to such dissimilar provisions, a reference to the CGST Act would also mean a reference to the same provision under the MGST Act. Further to the earlier, henceforth for the purposes of this Advance Ruling, a reference to such a similar provision under the CGST Act / MGST Act would be mentioned as being under the GST Act . 02 FACTS AND CONTENTION – AS PER THE APPLICANT The submissions, as reproduced verbatim, could be seen thus- Statement of relevant facts having a bearing on the question(s) raised Sonkamal Enterprises Private Limited is a Company having its Head office at Mumbai and a Branch in Gujarat – Gandhidham, Both are Registered Under the GST Act. We are importer of Chemicals especially phenol which we currently import at JNPT Port, Maharashtra and Kandla Port, Guja

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efore place of supply is west Bengal as per section 1 of IGST act 2017. Since we are only registered at Maharashtra and are supplying the goods on our Maharashtra GST TIN Registration number for this transaction, so it is an interstate supply of goods as defined in Section 7(3) of the IGST Act 2017 and therefore the transaction attracts IGST. Hence We are not required to have separate GST registration in the state of West Bengal. Additional submissions According to Section 22 of the CGST Act, Every Supplier is liable to be registered under this Act in the State from where he makes a taxable supply of goods or services or both. Thus as per our understanding registration is required in the state from which taxable supplies are made. Registration is not required in the State to which taxable supplies are made. It is important to identify the origin of supply even though GST is a destination based tax. Tax goes to the destination-state but registration is required in the Origin-State. so t

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en we get any orders from customers for delivery, the terms of delivery will be Ex-Terminal (i.e., the ownership and its respective risks and rewards will be transferred to our customer the moment goods are cleared from the customs port and we will cease to have control over the goods at that point). The material Will be transported directly from that port to Customers in Kolkata or in any other states. The Tax Invoice will be raised From Mumbai H.O. with Mumbai GSTIN levying IGST. As we will not be storing any goods within the state of West Bengal, in our opinion the location of Supplier would be the customs bonded warehouse and we will not be required to have registration in West Bengal. WRITE UP FOR THE PRACTICE TO BE FOLLOWED AND PRE GST PRACTICE FORR THE SAID TRANSACTION: There is no Pre GST practice in this case, as transaction is to be undertaken for the 1st time at Kolkata port. The Practice that we are intending to follow is : We will import the goods at Kolkata port in the na

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rt Foreign Supplier Invoice ii) Bill of Lading iii) Packing List iv) Certificate of origin v) Bill of Entry vi) Duty Payment Challan paid by Mumbai Branch with Mumbai GSTIN if the goods are cleared by us and stored at port warehouse and in other cased bill of entry and duty payment challan will be in the name of our customers who have cleared the goods. Documentation for Outward Supply of Good: i) Tax Invoice levying IGST From Mumbai Branch with Mumbai GSTIN ii) E Way bill only in case where Movement is made by us iii) In case of Highseas/Bond Transfer sales – Supply Agreement will be made and maintained properly. 03. CONTENTION – AS PER THE CONCERNED OFFICER The submission, as reproduced verbatim, could be seen thus- M/s. Sonkamal Enterprises Pvt. Ltd., 47, 602, Sunil Enclave, Periera Hill Road, Off. Andheri Kurla Road, Cinemagic Theatre, Andheri (East), Mumbai 400099 (here in after referred to as the applicant ) has filed above detailed application under Section 98 of the Central Goo

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Maharashtra and Kandla Port, Gujarat. They wish to import the Chemicals at Haldia Port (Kolkata, West Bengal). They are storing goods at rented Customs Warehouse at Haldia Port, they do not have any establishment or place of operation in State of West Bengal, they endeavour to clear the goods from that warehouse (Ex Bond) in the name of their Mumbai Head Office so here importation will be completed by payment of Customs Duty in Mumbai Head Office Name and they want to sell the goods to customers in West Bengal and other states nearby from that warehouse and charge IGST to their customers by raising bill from Mumbai and not West Bengal. They do not have any godown in the state of West Bengal and will not have any other godown or storage facility in the state other than the Haldia Port Customs Warehouse. 3. In point No.16 of the application, the applicant has stated and interpreted that they will be supplying Goods to their customers in West Bengal from Customs Warehouse situated at Kol

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of issuance of e-way bill is it correct to Mention the GSTIN of Mumbai and Dispatch place of Haldia Port?. 5. The applicant in Point No.15 of the application have stated that they wish to import the Chemicals at Haldia Port(Kolkata, West Bengal) and store the same at rented Customs Warehouse at Haldia Port and they do not have any establishment or place of operation in State of West Bengal. The applicant in Point No.16 of the application, have stated that they will be supplying Goods to their customers in West Bengal from Customs Warehouse situated at Kolkata. 6. Since, the applicant wish to import Chemicals viz. goods at Haldia Port (Kolkata, West Bengal), the nature of supply of goods is an interstate supply of goods as defined in Section 7(2) of the IGST Act, 2017 because Section 7(2) deals with Supply of goods imported into the territory of India and not Section 7(3) of the IGST Act, 2017, as claimed by the applicant, as it pertains to Supply of Services. Secondly, the place of Sup

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e completed by payment of Customs Duty and IGST. Since the applicant is an importer, the place of Supply of Goods shall be the location of the importer as per Section 11 (a) of IGST Act,2017. Further, the applicant does not have any office in West Bengal as per the application and the goods will be cleared from rented Custom Warehouse(Ex bond) at Haldia. As per Section 22(1) of CGST Act, 2017, Every supplier shall be liable to be registered under this Act in the State or Union territory, other than special category States, from where he makes a taxable supply of goods or services or both, if his aggregate turnover in a financial year exceeds twenty lakh rupees:…. In this case, the applicant makes a taxable supply of goods from Mumbai Head Office, as he does not have any office in the State of West Bengal as per his applicant. Hence, place from where the supplier makes a taxable Supply of Goods shall be the location of the supplier i.e Mumbai Head Office. since the applicant do n

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aphs, the question framed by the applicant in Point No.14, (i) whether the procedure to raise the invoice from Mumbai Head Office for imports received at Haldia Port, Kolkata where they do not have any separate GST Registration and Charge IGST from Mumbai to our Customers is correct? Or do they have to take separate Registration in the State of West Bengal for the below mentioned transactions, the answer is they need not take separate Registration in the State of West Bengal . (ii) If they do not need separate registration in West Bengal, can they do the transaction on Mumbai Head Office GSTIN, then in case of issuance of e-way bill is it correct to Mention the GSTIN of Mumbai and Dispatch place of Haldia Port?, the answer appears to be positive i.e. the applicant need not take separate registration in West Bengal and they can do the transaction on Mumbai Head Office GSTIN and it appears to be correct to mention the GSTIN of Mumbai Head Office in the E-way Bill and dispatch place as Cu

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OBSERVATIONS We have gone through the facts of the case, documents on record and submissions made by both, the applicant as well as the department. The applicant, an importer of chemicals is a Company having its Head office at Mumbai and a Branch in Gujarat – Gandhidham, both the offices being registered under the GST Laws. They are wanting to import the Chemicals at Haldia Port (Kolkata, West Bengal) on their own but with Mumbai Head Office GSTIN. After import the goods will be stored at the rented Customs Bonded warehouse at Haldia Port. They do not have any establishment or place of operation or any godown or GSTIN in the State of West Bengal and after importation, want to clear the goods from that warehouse (Ex Bond) in the name of their Mumbai Head Office. They want to sell such imported goods to customers in West Bengal and other States nearby from that warehouse and charge IGST by raising bills/invoices from Mumbai and not from West Bengal. The terms of delivery Will be Ex-Termi

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remost, since the applicant will be importing the goods into India as per Section 7(2) of the IGST Act, 2017, such supply of goods imported into India shall be treated as supply of goods in the course of Inter State Trade or commerce. Secondly in respect of goods imported into India, as per Section 11(a) Of the IGST Act, 2017, the place of supply shall be the location of the importer and in the present case since the importer is registered in Mumbai, the place of supply shall be Mumbai, Maharashtra. Chapter VI of the CGST Act, 2017, consisting of Sections 22 to 30 deals with registration under GST. Section 22 speaks of persons who are liable for registration and as per Section 22 (1) Every supplier shall be liable to be registered under this Act in the State or Union territory, other than special category States, from where the makes a taxable supply of goods or services or both, if …………………………. In the present case a

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efore they need not take separate registration in the State of West Bengal. This would answer their first question mentioned above. Now we deal with the second question raised by the applicant, which is mentioned above. In view of the discussions made in respect of question no. 1, we find that, since as an importer the place of supply for the applicant in this case will be Mumbai, and the goods also will be cleared on the name of the Mumbai registered address while paying IGST at the time of Customs Clearance, it would follow that they can do the further transaction mentioning the GSTIN of their Mumbai office. Hence we are of the opinion that they can do the transaction on Mumbai Head Office GSTIN and can mention the GSTIN of Mumbai Head Office in the E-way Bill and dispatch place as Customs Warehouse, Kolkata. 05. In view of the extensive deliberations as held hereinabove, we pass an order as follows : ORDER (under section 98 of the Central Goods and Services Tax Act, 2017 and the Mah

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2018 (12) TMI 1603 – SIKKIM HIGH COURT – 2018 (18) G. S. T. L. J216 (Sikkim) – The Chief Commissioner and the Senior Joint Commissioner, Large Tax Payer Unit, GST, Government of West Bengal, shall be impleaded as party Respondents in the present proceeding – Application is allowed. – WP (C) No. 36 of 2017 Dated:- 27-9-2018 – MRS. MEENAKSHI MADAN RAI AND MR. BHASKAR RAJ PRADHAN, JJ. For Petitioners : Mr. Karma Sonam Lhendup, Advocate. Ms. Tashi Doma Sherpa, Advocate. For Respondents : Mr. B. K. Gupta Advocate, Mr. Thinlay Dorjee Bhutia, Government Advocate, Mr. S. K. Chettri Assistant Government Advocate, Mrs. Pollin Rai Assistant Government Advocate, Ms. Karma Yangchen Bhutia, Advocate, Mr. Manish Kr. Jain, Advocate, Ms. Ranjeeta Kumari, Advocate ORDER I.A. No.01 of 2017 and I.A. No.05 of 2018 I.A. No.01 of 2017 and I.A. No.05 of 2018 are not pressed by Learned Counsel for the Petitioners. In the circumstance, I.A. No.01 of 2017 and I.A. No.05 of 2018 stand disposed of. I.A No.10 of

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ST Council under the Constitution and keeping in mind the federal structure of the Constitution neither the Union of India nor any State can give preference to one State over the other. It is also pleaded that the impugned Notifications have been passed on the recommendations of the GST Council. The application under consideration states that the GST Council is a statutory body whose duty has been enumerated as making recommendations to the Union and the States on inter alia (a) the taxes, cesses and surcharges levied which may be subsumed in the GST (b) the goods and services that may be subjected to or exempted from the GST and (c) special provision with respect to the States of Arunachal Pradesh, Assam, Jammu & Kashmir, Manipur, Meghalaya, Mizoram, Nagaland, Sikkim, Tripura, Himachal Pradesh and Uttarakhand. It is further submitted that the Respondent No.2 in its counter affidavit has annexed the minutes of the 18th meeting of the GST Council and it is alleged that the submissio

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following allegations against Senior Joint Commissioner, Large Tax Payer Unit, GST, as well as Chief Commissioner of Goods and Services Tax, West Bengal in the following manner:- 6. That on 08.02.2018, the representative of Petitioner No.1 after being verbally summoned to the office of the Senior Joint Commissioner, Large Tax Payer Unit, GST, directed the representatives of the Petitioner No.1 to ask their Director, Mr. S. Martin to be present before him on 12.02.2018 and 13.02.2018. On both these occasions, the Director of the Petitioner No.1 was present, where the Director was pressurized to forthwith deposit the amount of GST that according to the Senior Joint Commissioner, Large Tax Payer Unit, GST had fallen due under the impugned Act and the notifications, at the rate of 28%. All his fervent pleas for keeping in abeyance the issue of GST till final adjudication in the instant writ petition were brushed aside and finally on 15.02.2018, the Petitioner No.1 agreed to pay the GST. 7.

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s against Petitioners and hence the Chief Commissioner of Goods and Service tax, West Bengal and the Senior Joint Commissioner, Large Tax Payer Unit, GST have become proper and necessary parties for the purpose of adjudication of the instant writ. The affidavit in opposition filed on behalf of the Respondent No.1 and the GST Council merely states that the averments made therein except for those matter of records are not accepted. The State of West Bengal through the Finance Secretary is Respondent No.7 in the Writ Petition. The Petitioner seeks a prayer to hold and declare that the provisions of serial No.6 of Schedule III read with Section 7 (2) of the State Goods and Services Tax Act, 2017 (SGST Act) of the State of West Bengal exempting actionable claims as activities or transactions which shall be treated neither as supply of goods nor a supply or service but not excluding lottery from such exemption is unconstitutional, illegal and non-est as lotteries cannot at all be subjected t

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