Author: admin_gst

2018 (9) TMI 1519 – CESTAT CHENNAI – TMI – Refund of service tax – export of services – Place of provision of service – main contention put forward by the department is that the appellant is an intermediary and therefore the place of provision of service is within India – input services – Held that:- The appellants was engaged by M/s.H&H, China. So also, it is admitted that appellants have provided services to H & H, China. The invoices were raised on H & H, China by the appellant. The only conclusion therefore possible is that H & H, China is the intermediary if at all, and not the appellant – The recipient of logistic services being situated outside India, and the consideration having received in convertible foreign currency, the transaction has to be treated as export of service – thus appellant has facilitated the re-export of the goods.
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Input services – allegation is that major part of the input services were availed for import of goods and not export of services – Held tha

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; Forwarding Agent and for GTA services. They rendered LogisticSupport service to the shipper namely M/s.Jinneng Energy Technologies Ltd., China (JETL, for short) and received consideration in convertible foreign exchange. While executing such service, they availed various input services for export of logistics services and hence filed a refund claim on 28.02.2017 for ₹ 50,11,369/- under Rule 5 of Cenvat Credit Rules, 2004 for the quarter ending 30.09.2016. Show cause notice dt. 26.04.2017 was issued to the appellants proposing to reject the refund claim stating that activities of the appellant did not appear to be in relation to export of services. After due process of the claim, the original authority rejected the refund claim. In appeal, Commissioner (Appeals) upheld the same. Hence the appellants are before this Tribunal. 2. On behalf of the appellant, Ld. Counsel Shri V. Ravindran submitted that appellants are licensed customs broker and had carried out logistics services in

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n Solar Power India Pvt.Ltd., Chennai. The said containers arrived at Tuticorin port on 29.03.2016 but due to unforeseen business circumstances, the importer could not take delivery of the containers and therefore after negotiations, the shipper agreed to recall the goods and carry them back to China. The appellant had entered into agreement dt. 1.1.2015 with H & H (Tianjin) International Forwarders Co. Ltd., China. As per this agreement, H & H has appointed MAS (appellant) to facilitate re-export of goods. Thus the appellant had entered into logistics services for enabling the warehousing service, CFS services etc. for return / export of the goods to the shipper. They availed various input services for which they paid service tax and availed cenvat credit. The input services were indispensable for getting the goods reshipped to the shipper as permitted by the latter. Therefore logistics services rendered being an export of service, the appellant is eligible for credit of servi

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d on input services is not eligible for refund since the place of provision of service is within India. 4. Heard both sides. The main contention put forward by the department is that the appellant is an intermediary and therefore the place of provision of service is within India.The department has relied on Rule 9 of Place of Provision of Rules 2012, and held that since, the appellant who is an intermediary is within India, the place of providing service is within India. From the facts it is seen that appellants was engaged by M/s.H&H, China. So also, it is admitted that appellants have provided services to H & H, China. The invoices were raised on H & H, China by the appellant. The only conclusion therefore possible is that H & H, China is the intermediary if at all, and not the appellant. The recipient of logistic services being situated outside India, and the consideration having received in convertible foreign currency, the transaction has to be treated as export of

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GST – States – F.IV-3(15)-TAX/2017/8632-45 – Dated:- 25-9-2018 – NO.F.IV-3(15)-TAX/2017/8632-45 GOVERNMENT OF TRIPURA OFFICE OF THE COMMISSIONER OF TAXES P.N. COMPLEX, GURKHABASTI, AGARTALA Dated, Agartala, the 25th September, 2018. ORDER In exercise of the power conferred by sub-section (1) of section 5 read with sub-section (91) of section 2 of the Tripura State Goods and Services Tax Act, 2017 and the rules made thereunder, the Chief Commissioner of State Tax, Tripura hereby assigns the prop

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GST – States – SRO 430 – Dated:- 25-9-2018 – Government of Jammu and Kashmir Finance Department Civil Secretariat, Srinagar Notification Srinagar, the 25th of September, 2018 SRO 430- In exercise of the powers conferred by section 128 of the Jammu & Kashmir Goods and Services Tax Act, 2017 (Act No.V of 2017), the Jammu & Kashmir Government, on the recommendations of the Council, hereby waives the late fee paid under section 47 of the said Act, by the following classes of taxpayers:- (i)

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2018 (9) TMI 1640 – NATIONAL ANTI-PROFITEERING AUTHORITY – 2018 (19) G. S. T. L. 92 (N. A. P. A.) – Profiteering – contravention of the provisions of Section 171 of the CGST Act, 2017 – Benefit of reduction in the rate of tax by lowering the price of “Maybelline FIT Me foundation” not passed on to recipients – reduction in the rate of GST – N/N. 41/2017 -Central Tax (Rate) dated 14.11.2017 – Sale of goods by increasing the basis price of goods – also, the complaint mentioned at Sr. No. 1 did not contain the copy of the complaint and only a photocopy of the invoice was sent by the DGAP – Respondent has also claimed that the Authority had not prescribed the methodology under Rule 126 of the CGST Rules, 2017 for determining whether the benefit of tax reduction had been passed on or not and hence he could not be held liable for profiteering.
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Held that:- The Respondent had enhanced the basic price of both the shades of the product which was exactly equal to the amount by which the GS

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GST Act, 2017 also provides for imposition of interest under the Act and therefore, the same can be levied in the present proceedings. The Respondent cannot claim that since the amount of profiteering was miniscule no penalty should be imposed as each breach of the law has to be visited penalty.
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The Respondent is directed to reduce the price of both the shades of the product to ₹ 410/- and ₹ 449/- respectively excluding GST. He is also directed to refund an amount of ₹ 41/- along with interest @ 18% to the Applicant No. 1 from the date when this amount was realised by him from her till the date of refund – Since rest of the recipients are not identifiable the DGAP is directed to get the balance amount of profiteering of ₹ 15,820/- deposited in the Consumer Welfare Fund of the Central and the Concerned State Govt. as per the provisions of Rule 133 (3) (c) of the CGST Rules, 2017 along with interest @ 18% till the amount is paid.
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As regards complaint

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d hence this averment of the Respondent is also not correct.
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Presence of methodology under Rule 126 of the CGST Rules, 2017 for determining whether the benefit of tax reduction had been passed on or not – Held that:- The present proceedings are nowhere connected with looking in to the process of fixation of prices or margins of profit by the Respondent and they are limited only to the extent of finding out whether the benefit of tax reduction has been passed on by the Respondent to his customers or not. This Authority is only concerned with passing on of the commensurate benefit as is arrived at after calculation of the impact of rate reduction on the MRP of a product. There is further no restriction on the right of the Respondent to conduct trade as per Article 19 (1) (g) of the Constitution as Section 171 only requires him to pass on the above two benefits and does not require him to get any licence or seek approval to conduct trade or fix prices of the products being sold by h

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arsh Bhargava, Advocate, Sh. Tarun Gulati, Advocate and Ms. Jayashree Parthasarathy, Consultant for the Respondent. ORDER 1. This report dated 02.04.2018 has been received from the Applicant No. 2 i.e. Director General of Safeguards (DGSG), now re-designated as Director General of Anti-Profiteering (DGAP) under Rule 129 (6) of the Central Goods & Services Tax (CGST) Rules, 2017. The brief facts of the present case are that an application dated 23.11.2017 was filed by the Applicant No. 1 before the Standing Committee constituted under Rule 128 of the above Rules alleging that the Respondent had not passed on the benefit of reduction in the rate of tax by lowering the price of Maybelline FIT Me foundation , (here-in-after referred to as the product) which she had purchased from him, when the Goods and Services Tax (GST) was reduced from 28% to 18% on this product on 15.11.2017. She had also alleged that she had bought the above product from the Respondent @ ₹ 525/- per unit vid

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his communications dated 12.01.2018, 24.01.2018, 09.02.2018, 28.02.2018 and 12.03.2018. After examination of the replies submitted by the Respondent the DGAP has informed that the Respondent had contended that the label on the product showed Maximum Retail Price (MRP) of ₹ 550/- and the sale price of the product in the retail sale invoice was shown as ₹ 525/- and that he was not in a position to correlate the invoice with the MRP label as only a part of the MRP label was made available along with the application. The DGAP has further informed that the Respondent had also contended that it was evident that the MRP label of the product provided by the applicant was from the pre-GST stock which was imported in March, 2017 and hence, it did not factor the GST in it s price. The Respondent had also stated that in respect of the external brands he was dependent on the respective brand owner and the MRP and the retail selling price should have been revised by the brand owners. 5.

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the MRP of the product was ₹ 550/- which was revised to ₹ 575/- post 20.06.2017 and the RSP of the product was decided by the Respondent within the MRP which was printed on the back of the product. 7. The DGAP has further stated that the Respondent had sold 46 units of the product carrying MRP of ₹ 550/- during the period between 01.11.2017 to 14.11.2017 wherein the basic price per unit excluding GST of the product was ₹ 410/- per unit and the RSP charged inclusive of 28% GST was ₹ 525/- per unit. The product was bought by the Applicant No. 1 from the Respondent on 22.11.2017 vide tax invoice No 1230010554 for ₹ 525/-, in which the basic price per unit was increased from ₹ 410/- to ₹ 445/- as a result of which the RSP charged inclusive of 18% GST came out to be ₹ 525/- which was equal to the RSP which was being charged by the Respondent before the rate of tax was reduced w.e.f. 15.11.2017. The DGAP has also maintained that if the r

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units of another shade of the product which were having MRP of ₹ 575/- per unit between 01.11.2017 to 14.11.2017, in which the basic price per unit was increased from ₹ 449/- to ₹ 487/- and as a result of which the retail selling price charged Inclusive of 18% GST had remained unchanged at ₹ 575/-. He has also claimed that if the reduction in the GST rate from 28% to 18% had been taken into consideration the RSP charged inclusive of 18% GST would have been maximum of ₹ 530/- and therefore it was evident that profiteering of ₹ 45/- per unit (Rs. 575 – ₹ 530) and profiteering of ₹ 14,985/- on total 333 units (Rs.45×333=14,985) supplied during the period between 15.11.2017 to 31.01.2018 has been made and in the case of 13 units the RSP of which was ₹ 535/-, profiteering of Rs .5/- per unit (Rs.535 – ₹ 530) and profiteering of ₹ 65/- on total 13 units (Rs.535 – ₹ 530)x13=Rs.65) has been made during the period between

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filed his first written submissions on 03.05.2018 in which he has stated that the minutes of the meeting of the Standing Committee held on 29.11.2017 showed that there were two complaints filed by the Applicant No. 1. He has also submitted that it was recorded by the Standing Committee that the complaint mentioned at Serial No. 1 of the Annexure attached to the minutes had only tax invoice attached with it and hence the complaint was returned on the ground that not enough information was provided by the complainant to initiate action and therefore, she was free to make fresh complaint with adequate evidence. The Respondent has also submitted that against Serial No. 30 of the above Annexure, the Committee had recorded that the Respondent was not passing on the benefit of reduced GST from 28% to 18% and forwarded the complaint to the DGSG for necessary action. He has also claimed that Annexure-1 which had been referred to as the application by the complainant had been provided to the Re

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e has also claimed that since no guidelines had been framed as prescribed under Rule 126 thus a registered person could not be held being non-compliant. He has further stated that in the absence of any prescribed methodology, a methodology which was reasonable and consistent with the objectives of the statutory provisions deserved to be accepted and since the Respondent had adopted a methodology that was reasonable and consistent with the objectives, the entire proceedings needed to be dropped. He has also stated that under Section 171 (2) of the CGST Act, 2017, it was required to determine whether the reduction in tax rate had actually resulted in commensurate reduction in the prices but there was no prescription either under the Act or the Rules which required that the benefit had to be passed on in respect of each product separately. He has further stated that the pricing of the products was a complex exercise and they were usually not priced individually and in isolation at the uni

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the change in the rate / GST benefit accruing to a registered person as a whole where the registered person was engaged in supply of different goods / services and an individual product or service could not be isolated to determine compliance with the above provisions. He has further contended that the alleged benefits arising on an individual product could not be seen in isolation and the same were to be considered in terms of the regime introduced, the overall costs of GST implementation, other businesses carried out by the dealer and upon factoring in of various costs/ losses incurred at an entity level on his range of products. He has also alleged that neither the constitutional provisions nor the CGST Act empowered the Authority to get into the realm of price fixation at an individual product level and there was no intention to move away from free market price principles to an administered price mechanism. 12. The Respondent has also claimed that he had requested for a copy of the

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s. He has also claimed that he had sold the pre-GST and post-GST stock of the product at the average per unit price of ₹ 483/- and ₹ 523/- respectively which was lower than the price of ₹ 484/- and ₹ 530/- calculated by the DGAP and hence he had not profiteered. He has further claimed that he being a retailer operated on the basis of net realization as the MRP on all the external brands was fixed by the brand owner and he was entitled to margin which was derived by working back from the MRP, net of retail point taxes. He has also stated that his net realization, pre-GST was determined on the basis of VAT @ 14.5% which was factored in the MRP however, after the levy of GST his net realization had been adversely impacted. He has further stated that he was earning margin of ₹ 143/- on the product before coming in to force of the GST which was reduced to ₹ 95/- and ₹ 130/- after the imposition of GST @ 28% and 18% respectively and infact he was suf

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P had completely ignored the actual cost of goods and the net margin earned by the Respondent prior to the introduction of GST which alone could determine the so called base price. He has further claimed that as the Respondent was holding substantial pre-GST stock, it was necessary to compare the net margin earned by him prior to the introduction of GST and on the sales made after the reduction in the GST rate. He has also alleged that the Report did not take cognizance of the fact that the Respondent was incurring increased expenses as there was overall increase in the various operational costs by 16% in the FY 2017-18 as compared to the FY 2016-17 which had not been taken into account in arriving at the ideal price of the product. The Respondent has further submitted that in Para 14 it had been mentioned that the MRP of the product was ₹ 550/-, which was revised to ₹ 575/- post 20.06.2017 and the Respondent had no control on the revision of the MRP of the external brands

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#8377; 550/- during the period between 01.11.2017 to 14.11.2017 wherein the basic price per unit excluding GST was ₹ 410/- and the retail selling price charged inclusive of 28% GST was ₹ 525/- and therefore, the ideal price should have been ₹ 410/- + 18% GST i.e. ₹ 410/- +Rs. 74 =Rs. 484/-, however, the DGAP had ignored the sales made below ₹ 484/- arbitrarily but assessed profiteering of ₹ 811/- on the 24 units sold by the Respondent above the RSP of ₹ 484/-. He has also submitted that the methodology adopted by the DGAP was incorrect as he had ignored the relevant facts and made unwarranted presumptions as the MRP as well as the sale price was not ₹ 550/- but it was only ₹ 525/- as was evident from the Annexure-16 as submitted by him. He has further submitted that the calculation of an assumed base price by reducing 28% tax was incorrect and instead the actual cost of the product and the margin he was making prior to the introduct

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ded that the total no. of units of the product sold were 797 on which a total discount of 11.66% of the MRP which was more than what was required to be passed on as a result of reduction in rate of tax had been offered, however, from the details of outward taxable supplies submitted by him it had been observed by the DGAP that the total number of units sold during the period between 15.11.2017 to 31.01,2018 was 2604 out of which the Respondent had sold 370 units by increasing the basic price excluding GST. In reply to Para 17 the Respondent has claimed that he had only submitted details of sales of the specific shade of the product which was the subject matter of the complaint however, the DGAP had also taken details of other shades of the product into account which had resulted in the difference in the number of the units. The Respondent has further claimed that the notification prescribing rate change with effect from 15th November 2017 was published on the same date and a reasonable

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Behari Lal & Ors. v. State of H.P. 2000 (3) SCC 40 it was held that the legislature could not create any substantive rights or obligations or disabilities through general rule making powers unless the same was specifically contemplated by the provisions of the Act under which such powers were exercised. He has further argued that in the case of Petroleum and Natural Gas Regulatory Board v. Indraprastha Gas Limited & Ors. (2015) 9 SCC 209 it had been held that if on reading of the statute in entirety, a power did not flow, a delegated authority could not frame a regulation as that would not be in accord with the statutory provisions nor would it be for the purpose of carrying on the provisions of the Act. He has also claimed that the Report did not recommend imposition of any penalty and interest and hence the same could not be imposed. 15. Clarification was sought from the Standing Committee on the issues raised by the Respondent in respect of the two complaints made by the Ap

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label, bill and gist of the complaint alleging that she had bought one unit of the product from the Respondent for ₹ 525/-, the MRP of which was ₹ 550/- and the Respondent had not passed on the benefit of reduction of GST from 28% to 18% to her. The Committee has informed that since the complaint had all the details and it prima-facie appeared to be genuine it was forwarded to the DGAP for investigation. 16. Vide it s reply dated 19.06.2018 the DGAP has intimated that Form APAF-1 had not been prescribed when the complaint was filed by the above Applicant and hence there was no question of filing the complaint on this form. He has also informed that copy of the complaint dated 23.11.2017 was received by Sh. Sayan Bandhopadhyay on behalf of the Respondent on 06.01.2018 and a receipt was also issued by him which has been placed on record. 17. We have carefully considered the material placed before us as well as the submissions made by the Applicant No. 2 and the Respondent an

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to realise RSP of ₹ 525/- per unit which he was charging before 15.11.2017. Had the Respondent not increased the basic price of ₹ 410/- per unit; the RSP of the product would have been ₹ 484/- per unit including GST of 18%. There was no reason for the Respondent to increase the basic price exactly equal to the amount by which the rate of tax had been reduced. This change in the basic price was also done by him w.e.f. 15.11.2017 the day from which the rate of tax was reduced. Therefore, there is no doubt that the whole exercise of increasing the basic price was done by the Respondent with malafide intention of not passing on the benefit of tax reduction to his customers. Although the Respondent was selling the product of a foreign brand owner the MRP of which he could not have decided still he was legally bound to pass on the benefit of tax reduction to his local customers as he had claimed benefit of ITC. Any discount offered by the Respondent on the product can also

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the period between 01.11.2017 to 14.11.2017, wherein the basic price per unit excluding GST of the product was ₹ 449/- and the RSP charged inclusive of 28% GST was ₹ 575/-. After the reduction in the GST rate from 28% to 18% w.e.f. 15.11.2017 and taking into consideration the basic price per unit excluding GST the ideal RSP inclusive of 18% GST would have been ₹ 530/- per unit. Although there was a reduction in the GST rate from 28% to 18%, the basic price per unit excluding GST was increased by the Respondent from ₹ 449/- to ₹ 487/- per unit so that the RSP inclusive of 18% GST had remained unchanged at ₹ 575/- per unit, resulting in profiteering of ₹ 45/- per unit (Rs. 575 (-) ₹ 530). During the period between 15.11.2017 and 31.01.2018, the Respondent had sold 333 units of this shade of the product at the RSP inclusive of 18% GST @ ₹ 575/-, involving profiteering of ₹ 14,985/- (Rs. 45 x 333). The Respondent had also sold 13

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tioned at Sr. No. 30 of the minutes there was a written application with full name, email address, product label, invoice and gist of the allegation and hence this complaint was rightly considered by the Committee and sent to the DGAP for investigation. A copy of this complaint was also supplied to Sh. Sayan Bandhopadhyay representative of the Respondent on 06.01.2018 as is clear from the receipt issued by him and hence the allegation made by the Respondent that he was not supplied copy of the complaint on the basis of which the present proceedings had been launched is not correct. It is also apparent from the reply filed by the DGAP on 19.06.2018 that no APAF-1 form had been prescribed when the above Applicant had lodged her complaint on 23.11.2017 and hence there was no question of filing the complaint in the above Form and hence this averment of the Respondent is also not correct. 20. The Respondent has also claimed that the Authority had not prescribed the methodology under Rule 12

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any reduction in the rate of tax or the benefit of ITC has to be passed on to the recipient which means that every citizen who is a recipient of supply of goods or services has to get the benefit and hence this benefit has to be calculated on each and every product. The Respondent has no discretion to provide benefit on certain class of products and deny the same in respect of the other products. Denial of benefit as per the convenience of the Respondent is not permissible as it is hit by the provisions of the above Section and hence he cannot argue that the benefit was not required to be passed on all the products as a consumer may buy a particular product and may not buy another. His claim that fixation of price of a product was a complex exercise and the Authority was travelling in to the realm of price and profit fixation is completely wrong and untenable as the Authority is only concerned with the passing of the above two benefits and it has no mandate to be a price regulator. Th

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ass on this benefit to his customers and by no stretch of imagination he can pocket this reduction to the detriment of the ordinary consumer. 21. The Respondent has also claimed that he was not supplied copy of the complaint and was also not heard by the DGAP however, both these claims are not borne out from the facts of the present proceedings and hence they cannot be accepted as the Respondent has been provided copy of the complaint and the DGAP has afforded him due opportunity of defending himself and hence the principle of audi alteram partum has not been violated. The Respondent has also objected to the pan India investigation against him. The objection raised by the Respondent in this behalf is frivolous as all violations of Section 171 whether done locally or on all India basis can be looked in to by the DGAP and adjudicated upon by this Authority and the Respondent cannot be given liberty to decide which areas he should pass on the benefit and which areas he should not. Once in

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ent is not logical as he cannot be allowed to top up his margins from the amount of tax reduction which he is legally required to pass on to his customers. The Respondent has also claimed that his costs had increased by 16% during the year 2017-18 as compared to the year 2016-17 which had not been taken in to account by the DGAP. However, the Respondent had not increased his prices by 16% but has increased them exactly equal to the amount by which the tax had been reduced and that also on 15.11.2017 when the rate of tax was reduced from 28% to 18% and hence the claim made by the Respondent is hollow. The contention of the Respondent that he had sold the product below the ideal price calculated by the DGAP and had thus passed on the benefit can also not be accepted as the benefit was to be passed on to each and every customer and not a few chosen buyers. The Respondent has further claimed that the benefit could not be passed on immediately as reasonable time was required for doing so an

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ch is an offence under Section 122 (1) (i) of the CGST Act, 2017 and hence he is liable for imposition of penalty under the above Section. Rule 133 (3) (d) of the CGST Rules, 2017 also makes it clear that the penalty has to be imposed as per the provisions of the Act and since it is proposed to impose penalty under the Act there is no question of creating substantive liability under the Rules as there is specific sanction under the above Act to impose penalty. Similarly the CGST Act, 2017 also provides for imposition of interest under the Act and therefore, the same can be levied in the present proceedings. The Respondent cannot claim that since the amount of profiteering was miniscule no penalty should be imposed as each breach of the law has to be visited penalty. The law settled in the case of Kunj Behari Lal supra is of no help to the Respondent as there is specific provision of penalty under Section 122 of the CGST Act, 2017 which the Respondent has violated and hence this Authori

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nt ordered to be refunded or to be deposited shall be refunded or deposited within a period of 3 months by the Respondent from the date of receipt of this order failing which the same shall be recovered by the DGAP as per the provisions of the CGST Act, 2017 and shall be refunded or deposited as has been directed vide this order. Notice may also be issued to the Respondent to show cause as to why penalty as per the provisions of Section 122 of the CGST Act, 2017 read with Rule 133 (3) (d) of the CGST Rules, should not be imposed upon him. 24. The Respondent has himself admitted in para 27 of his submissions dated 18.05.2018 that an amount of ₹ 1,98,46,438/- might not have been passed on to the individual buyers by him, therefore, the DGAP is directed to investigate the claim made by the Respondent in this Para and submit Report to the Authority under Rule 129 (6) of the above Rules. 25. A copy of this order be sent to both the Applicants and the Respondent free of cost. File of t

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GST – States – G.O.Ms.No. 489 – Dated:- 25-9-2018 – NOTIFICATIONS BY GOVERNMENT REVENUE DEPARTMENT (COMMERCIAL TAXES-II) [G.O.Ms.No. 489, Revenue (Commercial Taxes-II) 25th September, 2018.] NOTIFICATION In exercise of the powers conferred by Section 164 of the Andhra Pradesh Goods and Services Tax Act, 2017 (Act No.16 of 2017), the Government of Andhra Pradesh hereby make the following amendments the Andhra Pradesh Goods and Services Tax Rules, 2017, issued in G.O.Ms.No.227, Revenue (CT-II) Department Dated : 22-06-2017 as subsequently amended. (1) These rules may be called the Andhra Pradesh Goods and Services Tax (Twenty Third Amendment) Rules, 2018. (2) They shall be deemed to have come into force on 10th September, 2018. AMENDMENTS 1.

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GST – States – G.O.Ms.No. 490 – Dated:- 25-9-2018 – NOTIFICATIONS BY GOVERNMENT REVENUE DEPARTMENT (COMMERCIAL TAXES-II) [G.O.Ms.No. 490, Revenue (Commercial Taxes-II) 25th September, 2018.] NOTIFICATION In exercise of the powers conferred by section 164 of the Andhra Pradesh Goods and Services Tax Act, 2017 (16 of 2017), the Governor of Andhra Pradesh, hereby makes the following rules further to amend the Andhra Pradesh Goods and Services Tax Rules, 2017, issued in G.O.Ms.No. 227, Revenue (CT-II) Department dated 22-06-2017 as subsequently amended. (1) These rules may be called the Andhra Pradesh Goods and Services Tax (Twenty Fourth Amendment) Rules, 2018. (2) They shall be deemed to have come into force on 13th September, 2018. AMENDMENTS 2. In the FORMS to the Andhra Pradesh Goods and Services Tax Rules, 2017, after FORM GSTR-9A, the following shall be inserted, namely:- FORM GSTR-9C See rule 80(3) PART – A – Reconciliation Statement Pt. I Basic Details 1 Financial Year 2 GSTIN 3A

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ted 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 (GSTR-9) R Un-Reconciled turnover (Q – P) AT1 6 Reasons for Un – Reconciled difference in Annual Gross Turnover A Reason 1 <<Text>> B Reason 2 <<Text>> C Reason 3 <<Text>> 7 Reconciliation of Taxable Turnover A Annual turnover after adjustments (from 5P above) <Auto> B Value of Exempted, Nil Rated, Non-GST supplies, No-Supply turnover C Zero rated supplies with

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ed payment of amount A Reason 1 <<Text>> B Reason 2 <<Text>> C 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 availed as per audited financial statements or books of account <Auto> E ITC claimed in Annual Return (GSTR-9) F Un-reconciled ITC ITC 1 13 Reasons

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n – reconciled difference in ITC A Reason 1 <<Text>> B Reason 2 <<Text>> C 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 correct to the best of my knowledge and belief and nothing has been concealed there from. **(Signature and stamp/Seal of the Auditor) Place: &helli

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ble 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 during the financial year on such revenue (which was recognized earlier), the value of such revenue shall be declared here. (For example, if rupees

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clared 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 APGST Act shall be declared here. 5K Aggregate value of all goods supplied by SEZs to DTA units for which the DTA units have filed bill of entry shall be declared here. 5L There may be cases where registered persons might have opted out of the composition scheme during the current financial year. Their turnover as

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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 (including supplies to SEZs) on which tax is not paid shall be declared here. This shall be reported net of credit notes, debit notes and amendments if any. 7D Value of reverse charge

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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 reconciliation of Input Tax Credit (ITC). The instructions to fill Part IV are as under:- Table No. Instructions 12A ITC availed (after reversals) as per the audited Annual Fin

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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 Statement or books of account on which ITC may or may not be available. Further, this is only an indicative list of heads under which expenses are generally booked. Taxpayer

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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-9C) is drawn up by the person who had conducted the audit: * I/we have examined the- (a) balance sheet as on ……… (b) the *profit and loss account/income and expenditure account for the period beginning from ………..…to ending on ……., and (c) the cash flow statement for the period beginning from ……..…to ending on ………, -attached herewith, of M/s …………… (Name), …………………….……&

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e 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 the APGST Act and Reconciliation Statement required to be furnished under section 44(2) of the APGST Act is annexed herewith in Form No. GSTR-9C. 5. In *my/our opinion and to the best of *

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

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

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GST – States – G.O.Ms.No. 488 – Dated:- 25-9-2018 – NOTIFICATIONS BY GOVERNMENT REVENUE DEPARTMENT (COMMERCIAL TAXES-II) [G.O.Ms.No.488, Revenue (Commercial Taxes-II) 25th September, 2018.] NOTIFICATION In exercise of the powers conferred by Section 164 of the Andhra Pradesh Goods and Services Tax Act, 2017 (16 of 2017), the State Government, on recommendation of the Goods and Services Tax Council, do hereby make the following rules further to amend the Andhra Pradesh Goods and Services Tax Rules, 2017, namely:- (1) These rules may be called the Andhra Pradesh Goods and Services Tax (Twenty Second Amendment) Rules, 2018. (2) Save as otherwise provided in these rules, they shall be deemed to have come into force with effect on and from 04th September, 2018. AMENDMNETS 1. In the Andhra Pradesh Goods and Services Tax Rules, 2017, (hereinafter referred to as the said rules), in rule 22, in sub-rule (4), the following proviso shall be inserted, namely:- Provided that where the person inste

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e said rules, in rule 89, in sub-rule (4), for clause (E), the following clause shall be substituted, namely:- (E) Adjusted Total Turnover means the sum total of the value of- (a) the turnover in a State or a Union territory, as defined under clause (112) of Section 2, excluding the turnover of services; and (b) the turnover of zero-rated supply of services determined in terms of clause (D) above and non-zero-rated supply of services, excluding- (i) the value of exempt supplies other than zero-rated supplies; and (ii) the turnover of supplies in respect of which refund is claimed under sub-rule (4A) or sub-rule (4B) or both, if any, during the relevant period. . 5. In the said rules, in rule 96, for sub-rule (10), the following sub-rule shall be substituted, namely:- (10) The persons claiming refund of integrated tax paid on exports of goods or services should not have – (a) received supplies on which the benefit of the notification issued vide G.O.Ms. No. 496 Revenue (CT-II) Departmen

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yance shall also carry a copy of the bill of entry filed by the importer of such goods and shall indicate the number and date of the bill of entry in Part A of FORM GST EWB-01. . 7. In the said rules, for FORM GST REG-20, the following FORM shall be substituted, namely:- FORM GST REG-20 [See rule 22(4)] Reference No. – Date – To Name Address GSTIN/UIN Show Cause Notice No. Date- Order for dropping the proceedings for cancellation of registration This has reference to your reply filed vide ARN dated – in response to the show cause notice referred to above. Upon consideration of your reply and/or submissions made during hearing, the proceedings initiated for cancellation of registration stands vacated for the following reasons: <> or The above referred show cause notice was issued for contravention of the provisions of clause (b) or clause (c) of sub-section (2) of Section 29 of the Central Goods Services Tax Act, 2017. As you have filed all the pending returns which were due on t

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ob worker or sent out from business place of job work (A) Details of inputs/ capital goods received back from job worker to whom such goods were sent for job work; and losses and wastes: GSTIN/ State of job worker if unregistered Challan No. issued by job worker under which goods have been received back Date of challan issued by job worker under which goods have been received back Description of goods UQC Quantity Original challan No. under which goods have been sent for job work Original challan date under which goods have been sent for job work Nature of job work done by job worker Losses & wastes UQC Quantity 1 2* 3* 4 5 6 7* 8* 9 10 11 (B) Details of inputs / capital goods received back from job worker other than the job worker to whom such goods were originally sent for job work; and losses and wastes: GSTIN/State of job worker if unregistered Challan No. issued by job worker under which goods have been received back Date of challan issued by job worker under which goods have

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(A) and Table (B) are mandatory in cases where fresh challan are required to be issued by the job worker. Otherwise, columns (2) & (3) in Table (A) and Table (B) are optional. 3. Columns (7) & (8) in Table (A), Table (B) and Table (C) may not be filled where one-to-one correspondence between goods sent for job work and goods received back after job work is not possible. 6. Verification I hereby solemnly affirm and declare that the information given hereinabove is true and correct to the best of my knowledge and belief and nothing has been concealed therefrom. Signature Name of Authorised Place Signatory ……… Date Designation/ Status………………… . 9. In the said rules, after FORM GSTR-8, the following FORMS shall be inserted, namely:- FORM GSTR-9 (See rule 80) Annual Return Pt. I Basic Details 1 Financial Year 2 GSTIN 3A Legal Name 3B Trade Name (if any) Pt. II Details of Outward and inward supplies declared during

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advances on which tax is to be paid (H + M) above 5 Details of Outward supplies on which tax is not payable as declared in returns filed during the financial year A Zero rated supply (Export) without payment of tax B Supply to SEZs without payment of tax C Supplies on which tax is to be paid by the recipient on reverse charge basis D Exempted E Nil Rated F Non-GST supply G Sub-total (A to F above) H Credit Notes issued in respect of transactions specified in A to F above (-) I Debit Notes issued in respect of transactions specified in A to F above (+) J Supplies declared through Amendments (+) K Supplies reduced through Amendments (-) L Sub-Total (H to K above) M Turnover on which tax is not to be paid (G + L above) N Total Turnover (including advances) (4N + 5M – 4G above) Pt. III Details of ITC as declared in returns filed during the financial year Description Type Central Tax State Tax/UT Tax Integrated Tax Cess 1 2 3 4 5 6 6 Details of ITC availed as declared in returns filed duri

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ition Credit through TRAN-II M Any other ITC availed but not specified above N Sub-total (K to M above) O Total ITC availed (I+ N above) 7 Details of ITC Reversed and Ineligible ITC as declared in returns filed during the financial year A As per Rule 37 B As per Rule 39 C As per Rule 42 D As per Rule 43 E As per section 17(5) F Reversal of TRAN-I credit G Reversal of TRAN-II credit H Other reversals (pl. specify) I Total ITC Reversed (A to H above) J Net ITC Available for Utilization (6O – 7I) 8 Other ITC related information A ITC as per GSTR-2A(Table 3 & 5 thereof) B ITC as per sum total of 6(B) and 6(H) above C ITC on inward supplies (other than imports and inward supplies liable to reverse charge but includes services received from SEZs) received during 2017-18 but availed during April to September, 2018 D Difference [A-(B+C)] E ITC available but not availed (out of D) F ITC available but ineligible (out of D) G IGST paid on import of goods (including supplies from SEZ) H IGST c

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year 14 Differential tax paid on account of declaration in 10 & 11 above Description Payable Paid 1 2 3 Integrated Tax Central Tax State/UT Tax Cess Interest Pt. VI Other Information 15 Particulars of Demands and Refunds Details Central Tax State Tax / UT Tax Integrated Tax Cess Interest Penalty Late Fee/Others 1 2 3 4 5 A Total Refund claimed B Total Refund sanctioned C Total Refund Rejected D Total Refund Pending E Total demand of taxes F Total taxes paid in respect of E above G Total demands pending out of E above 16 Information on supplies received from composition taxpayers, deemed supply under section 143 and goods sent on approval basis Details Taxable Value Central Tax State Tax/UT Tax Integrated Tax Cess 1 2 3 4 5 6 A Supplies received from Composition taxpayers B Deemed supply under Section 143 C Goods sent on approval basis but not returned 17 HSN Wise Summary of outward supplies HSN Code UQC Total Quantity Taxable Value Rate of Tax Central Tax State Tax/UT Tax Integrat

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ceived during the financial year for which the annual return is filed. The details filled in Part II is a consolidation of all the supplies declared by the taxpayer in the returns filed during the financial year. The instructions to fill Part II are as follows: Table No. Instructions 4A Aggregate value of supplies made to consumers and unregistered persons on which tax has been paid shall be declared here. These will include details of supplies made through E-Commerce operators and are to be declared as net of credit notes or debit notes issued in this regard. Table 5, Table 7 along with respective amendments in Table 9 and Table 10 of FORM GSTR-1 may be used for filling up these details. 4B Aggregate value of supplies made to registered persons (including supplies made to UINs) on which tax has been paid shall be declared here. These will include supplies made through E-Commerce operators but shall not include supplies on which tax is to be paid by the recipient on reverse charge basi

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o be paid by the recipient (i.e.by the person filing the annual return) on reverse charge basis. This shall include supplies received from registered persons, unregistered persons on which tax is levied on reverse charge basis. This shall also include aggregate value of all import of services. Table 3.1(d) of FORM GSTR-3B may be used for filling up these details. 4I Aggregate value of credit notes issued in respect of B to B supplies (4B), exports (4C), supplies to SEZs (4D) and deemed exports (4E) shall be declared here. Table 9B of FORM GSTR-1 may be used for filling up these details. 4J Aggregate value of debit notes issued in respect of B to B supplies (4B), exports (4C), supplies to SEZs (4D) and deemed exports (4E) shall be declared here. Table 9B of FORM GSTR-1 may be used for filling up these details. 4K & 4L Details of amendments made to B to B supplies (4B), exports (4C), supplies to SEZs (4D) and deemed exports (4E), credit notes (4I), debit notes (4J) and refund voucher

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and 5F shall be declared here. Table 9B of FORM GSTR-1 may be used for filling up these details. 5I Aggregate value of debit notes issued in respect of supplies declared in 5A,5B,5C, 5D, 5E and 5F shall be declared here. Table 9B of FORM GSTR-1 may be used for filling up these details. 5J & 5K Details of amendments made to exports (except supplies to SEZs) and supplies to SEZs on which tax has not been paid shall be declared here. Table 9A and Table 9C of FORM GSTR-1 may be used for filling up these details. 5N Total turnover including the sum of all the supplies (with additional supplies and amendments) on which tax is payable and tax is not payable shall be declared here. This shall also include amount of advances on which tax is paid but invoices have not been issued in the current year. However, this shall not include the aggregate value of inward supplies on which tax is paid by the recipient (i.e. by the person filing the annual return) on reverse charge basis. 4. Part III c

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payable on reverse charge basis shall be declared here. It may be noted that the total ITC availed is to be classified as ITC on inputs, capital goods and input services. Table 4(A)(3) of FORM GSTR-3B may be used for filling up these details. 6D Aggregate value of input tax credit availed on all inward supplies received from registered persons on which tax is payable on reverse charge basis shall be declared here. It may be noted that the total ITC availed is to be classified as ITC on inputs, capital goods and input services. Table 4(A)(3) of FORM GSTR-3B may be used for filling up these details. 6E Details of input tax credit availed on import of goods including supply of goods received from SEZs shall be declared here. It may be noted that the total ITC availed is to be classified as ITC on inputs and capital goods. Table 4(A)(1) of FORM GSTR-3B may be used for filling up these details. 6F Details of input tax credit availed on import of services (excluding inward supplies from SEZ

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o 6L above shall be declared here. Details of ITC availed through FORM ITC-01 and FORM ITC-02 in the financial year shall be declared here. 7A,7B, 7C, 7D,7E, 7F,7G and7H Details of input tax credit reversed due to ineligibility or reversals required under rules 37, 39,42 and 43 of the CGST Rules, 2017 shall be declared here. This column should also contain details of any input tax credit reversed under section 17(5) of the CGST Act, 2017 and details of ineligible transition credit claimed under FORM GST TRAN-I or FORM GST TRAN-II and then subsequently reversed. Table 4(B) of FORM GSTR-3B may be used for filling up these details. Any ITC reversed through FORM ITC -03 shall be declared in 7H. 8A The total credit available for inwards supplies (other than imports and inwards supplies liable to reverse charge but includes services received from SEZs) received during 2017-18 and reflected in FORM GSTR-2A (table 3 & 5 only) shall be auto-populated in this table. This would be the aggrega

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e time of imports (including imports from SEZs) during the financial year shall be declared here. 8H The input tax credit as declared in Table 6E shall be auto-populated here. 8K The total input tax credit which shall lapse for the current financial year shall be computed in this row. 5. Part IV is the actual tax paid during the financial year. Payment of tax under Table 6.1 of FORM GSTR-3B may be used for filling up these details. 6. Part V consists of particulars of transactions for the previous financial year but declared in the returns of April to September of current FY or date of filing of Annual Return for previous financial year (for example in the annual return for the FY, 2017-18, the transactions declared in April to September 2018 for the FY, 2017-18 shall be declared), whichever is earlier. The instructions to fill Part V are as follows:- Table No. Instructions 10 & 11 Details of additions or amendments to any of the supplies already declared in the returns of the prev

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details. 7. Part VI consists of details of other information. The instructions to fill Part VI are as follows:- Table No. Instructions 15A, 15B, 15C and 15D Aggregate value of refunds claimed, sanctioned, rejected and pending for processing shall be declared here. Refund claimed will be the aggregate value of all the refund claims filed in the financial year and will include refunds which have been sanctioned, rejected or are pending for processing. Refund sanctioned means the aggregate value of all refund sanction orders. Refund pending will be the aggregate amount in all refund application for which acknowledgement has been received and will exclude provisional refunds received. These will not include details of non-GST refund claims. 15E, 15F and 15G Aggregate value of demands of taxes for which an order confirming the demand has been issued by the adjudicating authority shall be declared here. Aggregate value of taxes paid out of the total value of confirmed demand as declared in

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pto₹ 5.00 Cr and at four digits level for taxpayers having annual turnover above ₹ 5.00 Cr. UQC details to be furnished only for supply of goods. Quantity is to be reported net of returns. Table 12 of FORM GSTR-1 may be used for filling up details in Table 17. 19 Late fee will be payable if annual return is filed after the due date. FORM GSTR-9A (See rule 80) Annual Return (For Composition Taxpayer) Pt. I Basic Details 1 Financial Year 2 GSTIN 3A Legal Name 3B Trade Name (if any) 4 Period of composition scheme during the year (From To ) 5 Aggregate Turnover of Previous Financial Year (Amount in ₹ in all tables) Pt. II Details of outward and inward supplies declared in returns filed during the financial year Description Turnover Rate of Tax Central Tax State / UT Tax Integrated tax Cess 1 2 3 4 5 6 7 6 Details of Outward supplies on which tax is payable as declared in returns filed during the financial year A Taxable B Exempted, Nil-rated C Total 7 Details of inward s

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r Description Turnover Central Tax State Tax / UT Tax Integrated Tax Cess 1 2 3 4 5 6 10 Supplies / tax (outward) declared through Amendments (+) (net of debit notes) 11 Inward supplies liable to reverse charge declared through Amendments (+) (net of debit notes) 12 Supplies / tax (outward) reduced through Amendments (-) (net of credit notes) 13 Inward supplies liable to reverse charge reduced through Amendments (-) (net of credit notes) 14 Differential tax paid on account of declaration made in 10, 11, 12 & 13 above Description Payable Paid 1 2 3 Integrated Tax Central Tax State/UT Tax Cess Interest Pt. V Other Information 15 Particulars of Demands and Refunds Description Central Tax State Tax / UT Tax Integrated Tax Cess Interest Penalty Late Fee/Others 1 2 3 4 5 6 7 8 A Total Refund claimed Total Refund sanctioned B C Total Refund Rejected D Total Refund Pending E Total demand of taxes F Total taxes paid in respect of E above G Total demands pending out of E above 16 Details of

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of the financial year previous to the year for which the return is being filed. For example for the annual return for FY 2017-18, the aggregate turnover of FY 2016-17 shall be entered into this table. It is the sum total of turnover of all taxpayers registered on the same PAN. 3. Part II consists of the details of all outward and inward supplies in the financial year for which the annual return is filed. The instructions to fill Part II are as follows:- Table No. Instructions 6A Aggregate value of all outward supplies net of debit notes / credit notes, net of advances and net of goods returned for the entire financial year shall be declared here. Table 6 and Table 7 of FORM GSTR-4 may be used for filling up these details. 6B Aggregate value of exempted, Nil Rated and Non-GST supplies shall be declared here. 7A Aggregate value of all inward supplies received from registered persons on which tax is payable on reverse charge basis shall be declared here. Table 4B, Table 5 and Table 8A of

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previous financial year (for example in the annual return for the FY, 2017-18, the transactions declared in April to September 2018 for the FY, 2017-18 shall be declared), whichever is earlier. The instructions to fill Part V are as follows: Table No. Instructions 10,11,12,13 and 14 Details of additions or amendments to any of the supplies already declared in the returns of the previous financial year but such amendments were furnished in Table 5 (relating to inward supplies) or Table 7(relating to outward supplies) of FORM GSTR- 4 of April to September of the current financial year or upto the date of filing of Annual Return for the previous financial year, whichever is earlier shall be declared here. 5. Part V consists of details of other information. The instruction to fill Part V are as follows:- Table No. Instructions 15A, 15B, 15C and 15D Aggregate value of refunds claimed, sanctioned, rejected and pending for processing shall be declared here. Refund claimed will be the aggregat

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GST – States – G.O.Ms.No. 487 – Dated:- 25-9-2018 – NOTIFICATIONS BY GOVERNMENT REVENUE DEPARTMENT (COMMERCIAL TAXES-II) [G.O.Ms.No.487, Revenue (Commercial Taxes-II) 25th September, 2018.] NOTIFICATION In exercise of the powers conferred by Section 128 of the Andhra Pradesh Goods and Services Tax Act, 2017 (Act No.16 of 2017), the Government, on the recommendations of the Goods and Services Tax Council, hereby waive the late fee paid under section 47 of the said Act, by the following classes o

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GST – States – G.O.Ms.No. 484 – Dated:- 25-9-2018 – NOTIFICATIONS BY GOVERNMENT REVENUE DEPARTMENT (COMMERCIAL TAXES-II) [G.O.Ms.No.484, Revenue (Commercial Taxes-II) 25th September, 2018.] NOTIFICATION In exercise of the powers conferred by Section 164 of the Andhra Pradesh Goods and Services Tax Act, 2017 (Act No.16 of 2017) the Government of Andhra Pradesh hereby make the following amendment to the Andhra Pradesh Goods and Services Tax Rules, 2017 issued in G.O.Ms.No.256, Revenue (CT-II) Dep

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GST – States – CT/GST-15/2017/191 – Dated:- 25-9-2018 – GOVERNMENT OF ASSAM OFFICE OF THE COMMISSIONER OF TAXES, ASSAM KAR BHAWAN, DISPUR, GUWAHATI-6 CORRIGENDUM TO CIRCULAR No. 11/2017-GST Dated Dispur the 25 September, 2018. Subject : Corrigendum to Circular No. 11/2017-GST issued vide No. CT/GST-15/2017/47 dated 22nd December 2017- reg. No. CT/GST-15/2017/191.- Paragraph 4 of Circular No. 11/2017-GST issued vide No. CT/GST-15/2017/47 dated 22nd December 2017 should be read as – It is further

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GST – States – 51/2018-State Tax – Dated:- 25-9-2018 – No.J.21011/1(iii)/2018-TAX/Pt GOVERNMENT OF MIZORAM TAXATION DEPARTMENT …. N O T I F I C A T I O N No.51/2018-State Tax Dated Aizawl the 25th Sept., 2018 In exercise of the powers conferred by sub-section (3) of section 1 of the Mizoram Goods and Services Tax Act, 2017 (6 of 2017) (hereinafter referred to as the said Act), the Governor of Mizoram hereby appoints the 1st day of October, 2018, as the date on which the provisions of sec

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GST – States – 50/2018-State Tax – Dated:- 25-9-2018 – No.J.21011/1(ii)/2018-TAX/Pt GOVERNMENT OF MIZORAM TAXATION DEPARTMENT …. N O T I F I C A T I O N No.50/2018-State Tax Dated Aizawl the 25th Sept., 2018 In exercise of the powers conferred by sub-section (3) of section 1 of the Mizoram Goods and Services Tax Act, 2017 (6 of 2017) and in supercession of the notification of the Government of Mizoram No.J.21011/1/2017-TAX/Vol-I/Pt(ii), dated the 3rd October, 2017, except as respects thi

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GST – States – 49/2018-State Tax – Dated:- 25-9-2018 – No.J.21011/1(i)/2018-TAX/Pt GOVERNMENT OF MIZORAM TAXATION DEPARTMENT …. NOTIFICATION No. 49/2018-State Tax Dated Aizawl the 25th Sept., 2018 In exercise of the powers conferred by section 164 of the Mizoram Goods and Services Tax Act, 2017 (6 of 2017), the Governor of Mizoram hereby makes the following rules further to amend the Mizoram Goods and Services Tax Rules, 2017, namely:- 1. (1) These rules may be called the Mizoram Goods and Services Tax (Tenth Amendment) Rules, 2018. (2) They shall come into force on the date of their publication in the Official Gazette. 2. In the FORMS to the Mizoram Goods and Services Tax Rules, 2017, after FORM GSTR-9A, the following shall be inserted, namely:- FORM GSTR-9C See rule 80(3) PART – A – Reconciliation Statement Pt. I Basic Details 1 Financial Year 2 GSTIN 3A Legal Name < Auto> 3B Trade Name (if any) <Auto> 4 Are you liable to audit under any Act? <<Please specif

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atement 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 turnover after adjustments (from 5P above) <Auto> B Value of Exempted, Nil Rated, Non-GST supplies, No-Supply turnover C Zero rated supplies without payment of tax D E F Supplies on which tax is to be paid by the recipient on reverse charge basis Taxable turnover as pe

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ditional 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 availed as per audited financial statements or books of account <Auto> E ITC claimed in Annual Return (GSTR-9) F Un-reconciled ITC ITC 1 13 Reasons for un-reconciled difference in ITC A B C Reason 1 <<Text>> Reason 2 <<Text>> Reason 3 <<Te

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> 16 Tax payable on un-reconciled difference in ITC (due to reasons specified in 13 and 15 above) Description Amount Payable Central Tax State/UT Tax Integrated Tax Cess Interest Penalty Pt.V Auditor's recommendation on additional Liability due to non-reconciliation To be paid through Cash Description Value Central tax State tax/UT tax Integrated tax Cess, if applicable 1 2 3 4 5 6 5% 12% 18% 28% 3% 0.25% 0.10% Input Tax Credit Interest Late Fee Penalty Any other amount paid for supplies not included in Annual Return (GSTR-9) Erroneous refund to be paid back Outstanding demands to be settled Other (Pl. specify) Verification: I hereby solemnly affirm and declare that the information given herein above is true and correct to the best of my knowledge and belief and nothing has been concealed there from. **(Signature and stamp/Seal of the Auditor) Place: …………… Name of the signatory ………………… Membership

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s 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 during the financial year on such revenue (which was recognized earlier), the value of such revenue shall be declared here. (For example, if rupees Ten Crores of unbilled revenue existed for the financial year 2016-17, and during the current financial year, GST was paid

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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 MGST Act shall be declared here. 5K Aggregate value of all goods supplied by SEZs to DTA units for which the DTA units have filed bill of entry shall be declared here. 5L There may be cases where registered persons might have opted out of the composition scheme during the current financial year. Their turnover as per the audited Annual Financial Statement would include turnover both as composition taxpayer as well as normal taxpayer. There

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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 (including supplies to SEZs) on which tax is not paid shall be declared here. This shall be reported net of credit notes, debit notes and amendments if any. 7D Value of reverse charge supplies on which tax is to be paid by the recipient shall be declared here. This shall be reported net of credit notes, debit no

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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 reconciliation of Input Tax Credit (ITC). The instructions to fill Part IV are as under:- Table No. Instructions 12A ITC availed (after reversals) as per the audited Annual Financial Statement shall be declared here. There may be cases where multiple GSTINs (State-wise) registrations exist on the same PAN. Th

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unts 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 Statement or books of account on which ITC may or may not be available. Further, this is only an indicative list of heads under which expenses are generally booked. Taxpayers may add or delete any of these heads but all heads of expenses on which GST has been paid / was payable are to be declared here. 14R To

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d 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 ………, attached herewith, of M/s …………… (Name), …………………….………… (Address), ..…………………(GSTIN). 2. Based on our audit I/we report that the s

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

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

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

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GST – States – FIN-CT1-TAX-0045-2017/30797/F – Dated:- 25-9-2018 – GOVERNMENT OF ODISHA FINANCE DEPARTMENT ***** Memo No.FIN-CT1-TAX-0045-2017/30797/F, Dated 25.09.2018 To, All Departments of Government, All Heads of Department Sub: Guidelines for Deductions and Deposits of TDS by the DDO under GST. Section 51 of the Odisha GST Act 2017 provides for deduction of tax by the Government Agencies (Deductor) or any other person to be notified in this regard, from the payment made or credited to the supplier (Deductee) of taxable goods or services or both, where the total value of such supply, under a contract, exceeds two lakh and fifty thousand rupees. The amount deducted as tax under this section shall be paid to the Government by deductor within ten days after the end of the month in which such deduction is made along with a return in FORM GSTR-7 giving the details of deductions and deductees. Further, the deductor has to issue a certificate to the deductee mentioning therein the contra

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) of the said Act: (i) Central and State Government Departments / Establishments (e.g. Departments ,Heads of Departments, Collectorates, other sub-ordinate / field offices etc.) (ii) Local Authority (e.g. Municipalities, Panchayati Raj Institutions etc.) (iii) Government Agencies (e.g. DRDA, ITDA etc.) (iv) An Authority / Board / Any other Body set up by an Act of Parliament / State Legislature or established by any Government with fifty-one percent or more participation by way of equity or control to carry out any function (v) Society established by Central Government or State Government or a Local Authority under Societies Registration Act, 1860 (21 of 1860) (vi) Public Sector Undertakings (Central and State) (e.g. OMC, OPGC etc.) Registration: 5. For Registration as Tax Deductor, the following are required: (i) TAN / PAN of the entity (ii) Proof of Address of the place of the entity (Any proof issued by Government authority / by Local Authority / Municipal Khata Copy / Electricity B

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al password. 7. The Tax Deductor is required to deduct TDS amount from the payment to be made to the Supplier Deductee at the rate of 2% (i.e. 1% Odisha GST + 1% Central GST in case of IntraState Supply and 2% IGST in case of Inter-State Supply). Once such deduction is made by the Tax Deductor, the TDS amount is required to be deposited by the Tax Deductor in the (Government account (OGST / CGST / IGST, as the case may be) within 10 days from the end of the month in which the deduction is made. 8. There are various kinds of office establishments relating to the frequency of deduction of TDS and the modalities for disbursement of payments to deductees / suppliers. a) Government entities drawing and disbursing by raising bills through the Treasury using IFMS, where the number of TDS deduction cases are not very high (e.g. Departments / Heads of Departments / Subordinate offices etc.) b) Government entities drawing and disbursement by issuing e-Cheques through IFMS, where the number of TD

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DDO shall login into the GST Portal and generate the CPIN (Challan). In the challan he shall have to fill in the desired amount of payment against one/many Major Head(s) (OGST/CGST/IGST) and the relevant component (e.g. Tax / Interest / Penalty / Fees, as the case may be) under each of the Major Head. (iii) While generating the cha) Ian. the DDO will have to select mode of payment as NEFT and select Reserve Bank of India PAD as the remitting Bank. (iv) In the Bill to be prepared in IFMS by the DDO, it may clearly be indicated: a. the net amount payable to the Supplier / Deductee; and b. 2% as TDS Odisha GST + Central GST or 2% IGST) will be specified. c. Deduction ofTDS should not be in fraction of rupees and the calculated value should be next higher rupee. (v) At the time of submission of bill, the DDO will enter the beneficiary account details of the vendor/supplier/contractor as the case may be for payment of the net amount to his/her Bank account. For remittance of TDS deducted fr

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sful payment, a CIN will be generated by the RBI and will be shared electronically with the GST Portal. This will get credited in the Electronic Cash Ledger of the concerned DDO / Tax Deductor in the GST Portal. This can be viewed and the details of CIN can be noted by the DDO anytime on GST portal using his Login credentials. (ix) The DDO should maintain a Register as per proforma given in Annexure A to keep record of all T DS deductions made by him during the month. This Record will be helpful at the time of filing Monthly Return (FORM GSTR-7) by the DIDO. The DDO may also make use of the offline utility available on the GST Portal this purpose. (x) The DDO shall generate T DS Certificate through the GST Portal in FORM GSTR-7A after filing of Monthly Return. b) Deduction and Deposit process for FA & CAOs / Public Works & Forest divisions and P.L. Administrators using e-Cheque facility of IFMS: Bunching of deductions and its deposit by the DDO DDOs who make large number of pay

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ll be specified (a) the net amount payable to the Suppliers / Deductee; and (b) 2% as TDS (1% Odisha GST+1% Central GST or 2% IGST) (c) Deduction of TDS should not be in fraction of rupees and the calculated value should be next higher rupees. (v) The TDS amount shall be mentioned in the Bill for booking in the Suspense Heads as below: 8658 – Suspense-00-101-PAO Suspense-9161 -Odisha Goods and Services Tax (OGST)-91196-Adjustment of PAO Suspense 8658 – Suspense-00-101-PAO Suspense-9162-Central Goods and Services Tax (CGST)-91196-Adjustlnent of PAO Suspense 8658 Suspense-00-101-PAO Suspense-9163-lntegrated Goods and Services Tax (IGST)-91196-Adjustnnent of PAO Suspense (vi) The DDO will be required to maintain the Record of the TDS so being booked under the Suspense Head so that at the time of preparing the CPIN for making payment on weekly/monthly or any other periodic basis, the total amount could be easily worked out. (vii) At any periodic interval, when DDO needs to deposit the TDS

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eneficiary's account number), RBI (as beneficiary) and the IFSC Code of RBI with the request to payment authority to make payment in favour of RBI. details of remittance Bank i.e. RBI and IFSC code will be auto-populated into the challan created from GST Portal. (xii) IFMS Odisha has also been customized to facilitate remittance of GST deducted from the Bill. From the DDO Interface of IFMS, he/she will select GST TDS from the list of Beneficiary Type available in the Beneficiary Master. This will enable IFMS to auto populate the IFS Code of RBI for facilitating NEFT of TDS to GST Account. (xiii) Subsequently, DDO will enter the CPIN Number generated from the GST Portal in respect of the TDS particular of the Bill in the space provided recording the Bank account details of the beneficiary in the Beneficiary Master and select the same in the beneficiary list of that particular bill using the DDO Interface in IFMS. (xiv) Upon successful payment, a CIN will be generated by the RBI/Auth

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Board, Societies, State Public Sector Undertakings, Local Authorities & other organizations of State Government using Bank account, two options can be followed, which are as under: Option I: Generation of challan for every payment made during the month Option II: Bunching of TDS deducted from the bills on weekly, monthly or any periodic manner Option I – Individual Bill-wise Deduction and its Deposit by the DDO 09. In this option, the DDO will have to deduct as well as deposit the GST TDS for each bill individually by generating a CPIN (Challan) and mentioning it in the Bill itself. 10. Following process shall be followed by the DDO in this regard: (i) The DDO shall prepare the Bill based on the Expenditure Sanction. The Expenditure Sanction shall contain (a) Total amount, (b) net amount payable to the Contractor/Supplier/Vendor and (c) 2% TDS amount of GST. (ii) The DDO shall login into the GST Portal and generate the CPIN (Challan). In the challan he shall have to fill in the de

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in case of normal GST payment. (vi) In case of the OTC mode, the DDO will have to issue cheque in favour of one of the 25 authorized Banks. The Cheque may then be deposited along with the challan with any of branch of the authorized Bank so selected by the DDO. (vii) Upon successful payment, a CIN will be generated by the Authorized Bank and will be shared electronically with the GST Portal. This will get credited in the electronic Cash Ledger of the concerned DDO in the GST Portal. This can be viewed and the details of CIN can be noted by the anytime on GST portal using his Login credentials. (viii) The DDO should maintain a Register as per proforma given in Annexure 'A' to keep record of all TDS deductions made by him during the month. This Record will be helpful at the time of filing Monthly Return (FORM GSTR-7) by the DDO. The DDO may also make use of the offline utility available on the GST Portal for this purpose. Option II – Bunching of deductions and its deposit by the

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ired to maintain the Record of the TDS so being booked under the Suspense account so that at the time of preparing the CPIN for making payment on weekly / monthly or any other periodic basis, the total amount could be easily worked out. (iv) At any periodic interval, when DDO needs to deposit the TDS amount, he will prepare the CPIN by logging into the GST Portal for the amount (already booked under the Suspense account). (v) While generating the CPIN, the DDO will have to select mode of payment as either (a) NEFT/RTGS or (b) OTC. In the OTC mode, the DDO will have to select the Bank where the payment will be deposited through OTC mode. (vi) The DDO shall prepare the bill for the bunched TDS amount for payment through the concerned payment authority. In the Bill, the DDO will give reference of all the earlier paid bills from which 2% TDS was deducted and kept in the suspense account. The DDO may also attach a certified copy of the record maintained by him in this regard. (vii) The paym

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time on GST portal using his Login credentials. (xi) The DDO should maintain a Register as per proforma given in Annexure 'A' to keep record of all TDS deductions made by him during the month. This Record will be helpful at the time of filing Monthly Return (FORM GSTR-7) by the DDO. (xii) The DDO may also make use of the offline utility available on the GST Portal for this purpose. Monthly Return to be filed by DDOs / Tax Deductors: 13. Once the Tax Deductor makes the deposit of the TDS amount to respective government account successfully, the same would be updated in the Electronic Cash Ledger of the Tax Deductor as credit entry(s). This will be required to set off the liability created by filing the TDS return by the Tax Deductor. It is suggested that in order to be able to file the tax return in time, the deposit should be made before filing the tax return. 14. The Tax Deductors are required to file monthly tax return for TDS online in GST Common Portal. The TDS returns are

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GST – States – KA.NI.-2-1884/XI-9(47)/17 – Dated:- 25-9-2018 – Uttar Pradesh Shasan Sansthagat Vitta, Kar Evam Nibandhan Anubhag-2 NOTIFICATION NO.KA.NI.-2-1884/XI-9(47)/17-U.P. Act-1-2017, Lucknow : Dated : September 25, 2018 In exercise of the powers conferred by section 148 of the Uttar Pradesh Goods and Services Tax Act, 2017 (U.P. Act no I of 2017), on the recommendations of the Council, the Governor, hereby specifies the persons who did not file the complete FORM GST REG-26 of the Uttar Pradesh Goods and Services Tax Rules, 2017 but received only a Provisional Identification Number (PID) (hereinafter referred to as "such taxpayers") till the 31st December, 2017 may now apply for Goods and Services Tax Identification Number

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ding the request (ii) On receipt of an e-mail from the Goods and Services Tax Network (GSTN), such taxpayers should apply for registration by logging onto htlps://www.gst.gov.in/) in the "Services" tab and filling up the application in FORM GST REG-01 of the Uttar Pradesh Goods and Services Tax Rules, 2017. (iii) After due approval of the application by the proper officer, such taxpayers will receive an email from (GSTN mentioning the Application Reference Number (ARN), a new GSTIN and a new access token. (iv) Upon receipt, such taxpayers are required to furnish the following details to GSTN by email, on or before the 30th September, 2018, to migration@gstn.org.in :- (a) New GSTIN; (b) Access Token for new GSTIN; (c) ARN of new ap

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2018 (10) TMI 211 – CESTAT NEW DELHI – TMI – Condonation of delay of 23 days in filing appeal – reasons stated is that the Counsel Shri Aakash Gupta was ill for the period 25th June 2018 to 8th July 2018 which has resulted in the delay – Held that:- It is found that delay is explained to some part – we condone the delay subject to payment of cost of ₹ 5000/- payable in ‘Kerala Chief Minister Relief Fund’ on or before 1st November, 2018 and to tag appeal Nos. E/2224-2225/2012-EX.(DB) with this appeal. – E/COD/50910/2018 in Appeal No. E/52536/2018-DB – Misc. Order No. 50686/2018 – Dated:- 25-9-2018 – Mr. Anil Choudhary, Member (Judicial) And Mr. Bijay Kumar, Member (Technical) For the Appellant : None For the Respondent : Shri S.K. Ban

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Tax Deduction at source as per Section 51 of Goa Goods and Services Tax Act, 2017 and Section 51 of the Central Goods and Services Tax Act, 2017 and procedure / guidelines to be followed by Drawing and Disbursing Officers (DDO s) / Government Departments or Government Agencies / Local authorities etc. of the State Government. – GST – States – 8/1/2017-Fin (R&C) – Dated:- 25-9-2018 – Government of Goa Department of Finance (Revenue & Control) Secretariat, Porvorim, Bardez – Goa – 403521. No. 8/1/2017-Fin (R&C) Dated:- 25/09/2018 Read: Circular No. 8/1/2017-Fin(R&C) dated 25/07/2017. CIRCULAR Sub:-Tax Deduction at source as per Section 51 of Goa Goods and Services Tax Act, 2017 and Section 51 of the Central Goods and Services Tax

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2017, and also, section 51 of the CGST Act, 2017, had not been brought into force and thus, the said levy of TDS had not been implemented till date. 2. Pursuant to the decision taken by the GST Council, the Central Government vide Notification No. 50/2018-Central Tax dated 13/09/2018 (published in The Gazette of India : Extraordinary, Part II – Section 3 (i) dated 13/09/2018) has notified 01/ 10/2018 as the date on which section 51 of the CGST Act, 2017, shall come into force. Likewise, the State Government, vide Notification No. 38/1/2017/Fin(R&C)(72) dated 21/09/2018 (published in the Official Gazette, Extraordinary No. 2, Series I No. 25, dated 21/09/2018) has notified 01/10/2018 as the date on which the provisions of section 51 of t

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2018 (10) TMI 400 – CESTAT CHENNAI – TMI – Renting of immovable property – Joint ownership – clubbing of clearances – SSI Exemption – Department was of the view that since co-owners have an undivided share in the property, all the co-owners have to be treated as an association of person and the rental income has to be combined together – case of appellant is that that the department cannot consider all the four co-owners as an association of person so as to demand service tax by combining the rent by each co-owners.
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Held that:- When the co-owners are treated individually, the amounts undoubtedly fall below the threshold exemption.
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The Tribunal in the case of Sarojben Khulsanchand & Ors. Vs. Commissioner of Service Tax, Ahmedabad [2017 (5) TMI 240 – CESTAT AHMEDABAD], had considered the similar issue and held that The service Tax Registration of individual assessees for collection of service tax is PAN based, hence, collection of service tax from one of the co-owners, again

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d separately for each co-owner for income tax purposes. Department was of the view that since co-owners have an undivided share in the property, all the co-owners have to be treated as an association of person and the rental income has to be combined together. When the rental income was combined in such manner, the amount exceeded the threshold limit and the appellants were therefore liable to pay service tax. Show cause notice was issued to the appellants proposing to demand service tax along with interest and also for imposing penalties. After due process of law, the original authority confirmed the demand of service tax of ₹ 10,06,867/- on the appellants along with interest under renting of immovable property service and also imposed penalties. In appeal, Commissioner (Appeals) upheld the same. Hence this appeal. 2. On behalf of the appellant, ld. Consultant Shri G. Siva Kumar appeared and argued the matter. He submitted that the four appellants are co-owners and each have the

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; CE, Dehradun – 2018 (6) TMI 810 – CESTAT, New Delhi. b. Sh. Jasdeep Singh & Ors. Vs. Commissioner of Central Excise, Jalandhar – 201 (5) TMI 895 – CESTAT, Chandigarh 4. The ld. AR Shri K. Veerabhadra Reddy supported the findings in the impugned order. 5. Heard both sides. 6. The ld. consultant for the appellant has given the break-up of the share of each co-owners in the value of rent alleged n the show cause notice. It would show that the same would fall below the threshold exemption under SSI notification during the relevant period. The demand has been raised on all the coowners to treat them as association of person and levy service tax on the amount of rent received by them. When the coowners are treated individually, the amounts undoubtedly fall below the threshold exemption. The Tribunal in the case of Sarojben Khulsanchand & Ors. Vs. Commissioner of Service Tax, Ahmedabad – 2017 (5) TMI 240 had occasion to consider similar issue and observed as under:- 4. The learned A

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o effect on Service Tax matters in which the service of renting of property is indivisible and the Appellants are liable to pay Service Tax on the gross value realised in providing the service. xxxx xxxx xxxx xxxx xxxx 9. We find force in the contention of the ld. Advocates representing the respective appellants inasmuch as association of persons‟ has been considered as a separate legal entity under the Income-tax Act for assessment and provided separate PAN number different from the PAN number possessed by individual co-owners; who joined together to form an association of persons‟. In the present case, the show cause notices were issued in many cases to one person among the Joint owners and in other cases to all the persons who had jointly owned the immovable property provided on rent. Needless to mention, the Service Tax Registration of individual assessees for collection of Service Tax is PAN based, hence, collection of Service Tax from one of the co-owners, against his

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service provided by a service provider is ascertainable Service Tax is accordingly charged. This Tribunal in similar facts and circumstances in the cases of Deoram Vishrambhai Patel, Anil Saini & Others and Luxmi Chaurasia (supra) after considering the issues raised, rejected the contention of the Revenue and allowed the benefit of exemption Notification No. 6/2005-S.T., dt.1-3-2005 as amended to individual co-owners who jointly owned the property and provided the service of renting of immovable property, and received the rent in proportion to the shares in the immovable property. Similar issue was considered in the cases relied by the ld. consultant for the appellants. 7. Following the said decisions, we are of the considered opinion that the demand cannot sustain and requires to be set aside. The impugned order is set aside and the appeal is allowed with consequential relief, if any. (Operative portion of the order was pronounced in open court) – Case laws – Decisions – Judgeme

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2018 (10) TMI 401 – CESTAT CHENNAI – TMI – Renting of immovable property Service – inherited property – SSI Exemption – Association of persons – Held that:- The demand has been raised on all the co-owners to treat them as association of person and levy service tax on the amount of rent received by them. When the co-owners are treated individually, the amounts undoubtedly fall below the threshold exemption.
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The Tribunal in the case of Sarojben Khulsanchand & Ors. Vs. Commissioner of Service Tax, Ahmedabad [2017 (5) TMI 240 – CESTAT AHMEDABAD], had considered the similar issue and held that The service Tax Registration of individual assessees for collection of service tax is PAN based, hence, collection of service tax from one of the co-owners, against his individual Registration for the total rent received by all co-owners separately, is neither supported by law nor by laid down procedure. Thus, it is difficult to accept the proposition advanced by the Revenue that all the co-ow

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es were issued for the period April 2008 to March 2012 and April 2012 to March 2013 respectively and statement of demand dated 6.3.2015 issued covering the period from April 2013 to March 2014. After due process of law, the original authority confirmed the demand along with interest and imposed penalties under sections 76, 77 and 78 of the Finance Act, 1994. In appeal, Commissioner (Appeals) upheld the same. Hence these appeals. 2. On behalf of the appellants, ld. counsel Shri V. Ravindran appeared and argued the matter. He submitted that the appellants are individuals, mother, father, daughter and son. They inherited undivided individual shares in the immovable property which was rented for commercial purposes long years before renting was brought within the taxable services. They received rent individually albeit under a single lease deed and paid income tax. For service tax, the only rent received by each of them was less than the threshold limit. When the limit crossed in 2014 – 15

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ew Delhi. b. Sh. Jasdeep Singh & Ors. Vs. Commissioner of Central Excise, Jalandhar – 201 (5) TMI 895 – CESTAT, Chandigarh 3. The ld. AR Shri K. Veerabhadra Reddy supported the findings in the impugned order. 4. Heard both sides. 5. The demand has been raised on all the co-owners to treat them as association of person and levy service tax on the amount of rent received by them. When the co-owners are treated individually, the amounts undoubtedly fall below the threshold exemption. The Tribunal in the case of Sarojben Khulsanchand & Ors. Vs. Commissioner of Service Tax, Ahmedabad – 2017 (5) TMI 240 had occasion to consider similar issue and observed as under:- 4. The learned Authorized Representative for the Revenue reiterates the findings of the lower authorities. It is his contention that the learned Commissioner after taking into consideration the percentage of share of individual co-owners in the property against the total area owned and leased observed that the entire immov

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lants inasmuch as association of persons has been considered as a separate legal entity under the Income-tax Act for assessment and provided separate PAN number different from the PAN number possessed by individual co-owners; who joined together to form an association of persons . In the present case, the show cause notices were issued in many cases to one person among the Joint owners and in other cases to all the persons who had jointly owned the immovable property provided on rent. Needless to mention, the Service Tax Registration of individual assessees for collection of Service Tax is PAN based, hence, collection of Service Tax from one of the co-owners, against his individual Registration for the total rent received by all coowners separately, is neither supported by law nor by laid down procedure. Thus, it is difficult to accept the proposition advanced by the Revenue that all the coowners providing the service of renting of immovable property be considered as an association of

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2018 (10) TMI 476 – CESTAT CHENNAI – TMI – Renting of immovable property – Co-ownership – Association of persons – inherited property – SSI Exemption – clubbing of clearances – Held that:- The demand has been raised on all the co-owners to treat them as association of person and levy service tax on the amount of rent received by them. When the co-owners are treated individually, the amounts undoubtedly fall below the threshold exemption.
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The Tribunal in the case of Sarojben Khulsanchand & Ors. Vs. Commissioner of Service Tax, Ahmedabad [2017 (5) TMI 240 – CESTAT AHMEDABAD], had considered the similar issue and held that The service Tax Registration of individual assessees for collection of service tax is PAN based, hence, collection of service tax from one of the co-owners, against his individual Registration for the total rent received by all co-owners separately, is neither supported by law nor by laid down procedure. Thus, it is difficult to accept the proposition advanced by

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n combined together would cross the threshold limit. Thus, they are liable to pay service tax. Show cause notice was issued proposing to demand service tax along with interest and for imposing penalties. After due process of law, the original authority confirmed the demand along with interest and also imposed penalties. In appeal, Commissioner (Appeals) upheld the same except for modifying the penalty imposed under section 77(1)(a). Hence this appeal. 2. On behalf of the appellant, ld. counsel Shri S. Kannappan appeared and argued the matter. He submitted that the period of dispute is from April 2008 to March 2012. Shri S. Varadharaju Chettiar, Smt. V. Anusuya and Shri S.V. Janardhanam were co-owners of the immovable property and Shri S. Varadharaju Chettiar owned 50% of share in the property whereas the other two had 25% share in the property. The rental income were received by each owners and they were paying income tax separately. The department has combined the rental income receiv

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The Tribunal in the case of Sarojben Khulsanchand & Ors. Vs. Commissioner of Service Tax, Ahmedabad – 2017 (5) TMI 240 had occasion to consider similar issue and observed as under:- 4. The learned Authorized Representative for the Revenue reiterates the findings of the lower authorities. It is his contention that the learned Commissioner after taking into consideration the percentage of share of individual co-owners in the property against the total area owned and leased observed that the entire immovable property is given on lease, and there is no specific area that has been allotted to individual owner; thus since each of the co-owners not holding absolute ownership of any identifiable part in the property, hence not entitled to the benefit of said Notification. Further, the co-owners had only undivided interest in whole of the property and no divided interest in separate parts; accordingly, each co-owner cannot lease their share of the property independently to the lessee, henc

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vided on rent. Needless to mention, the Service Tax Registration of individual assessees for collection of Service Tax is PAN based, hence, collection of Service Tax from one of the co-owners, against his individual Registration for the total rent received by all co-owners separately, is neither supported by law nor by laid down procedure. Thus, it is difficult to accept the proposition advanced by the Revenue that all the co-owners providing the service of renting of immovable property be considered as an association of persons and the Service Tax on the total rent be collected from one of the co-owners. Another argument of the Revenue is that since the property is indivisible and not earmarked against each of the co-owners, hence the Service Tax is leviable on the total rent received against the said property without apportioning against each of the co-owners in proportion to their share. We find fallacy in the said argument of the Revenue. Conceptually Service Tax is levied on the s

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2018 (10) TMI 940 – KERLA HIGH COURT – 2019 (20) G. S. T. L. 338 (Ker.) – Refund of Tax paid – IGST – deemed export – application cannot be uploaded electronically – Held that:- The procedure mandates that the demand for refund should be through an application uploaded electronically. The petitioner could not follow that procedure because of the unavailability of the online facility.
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The Government of India issued a circular for “setting up an IT Grievance Redressal Mechanism to address the grievances of taxpayers due to technical glitches on GST Portal” – So, here too, the petitioner may apply to the Nodal Officer. The petitioner applying, the Nodal Officer will look into the issue and facilitate the petitioner’s uploading FORM GST TRAN-1 or any other applicable Form, without reference to the time-frame.
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Petition disposed off. – WP(C).No. 22615 of 2018 Dated:- 25-9-2018 – MR. DAMA SESHADRI NAIDU J. PETITIONERS: BY ADVS. SRI. E.P. GOVINDAN SMT. G. DEEPA SMT. JULIA PRIYA

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ner submitted the applications physically. As those applications have not been processed in terms of Ext.P14 circular, the petitioner has filed this writ petition. 2. The Standing Counsel for the 3rd respondent has drawn my attention to the counter affidavit the respondents filed and submitted that Ext.P14 circular only facilitates belated uploading. He has also submitted that if the petitioner approaches the 5th respondent -GST Network, he will entertain the petitioner's applications and process them. 3. Heard the learned counsel for the petitioner, the learned Assistant Solicitor General, the learned Government Pleader as also the learned Standing Counsel. 4. The Government of India issued a circular for setting up an IT Grievance Redressal Mechanism to address the grievances of taxpayers due to technical glitches on GST Portal. Paragraph 5 of the circular outlines the procedure the Nodal Officers is to follow. It reads: 5. Nodal officers and identification of issues 5.1 GSTN, Ce

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nce Redressal Committee with suggested solutions for resolution of the problem. (italics supplied) 5. Not only the petitioner but also many other people faced this technical glitch and approached this Court. Both the learned counsel submit that this Court on earlier occasions permitted the petitioner to apply to the Nodal Officer concerned to have the issue resolved. 6. So, here too, the petitioner may apply to the Nodal Officer. The petitioner applying, the Nodal Officer will look into the issue and facilitate the petitioner s uploading FORM GST TRAN-1 or any other applicable Form, without reference to the time-frame. Ordered so. 7. The petitioner to claim its refund based on the applications its already physically filed. For that purpose the Exhibits P15, P16 and P17 rejection orders shall stand quashed. With these observation, I dispose of the Writ Petition. The respondents may complete the entire exercise in three months. – Case laws – Decisions – Judgements – Orders – Tax Manage

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2018 (10) TMI 1076 – CESTAT MUMBAI – TMI – Penalty – Non-payment of Service Tax – import of certain services from over-seas entities – reverse charge mechanism – Section 66A of Finance Act – Held that:- Since the appellant did not pay the service tax attributable to receipt of taxable service, the CERA audit officers have rightly pointed out such mistakes. Being a Service Tax registered assessee, the appellant was required to comply with the statutory provisions, including payment of service tax within the stipulated time frame.
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Penalty rightly upheld – appeal dismissed – decided against appellant. – Appeal No. ST/86912/2018 – A/87457/2018 – Dated:- 25-9-2018 – Mr. S.K. Mohanty, Member (Judicial) Shri Pradeep Sawant, C.A. for appell

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nterest. The department initiated show cause proceedings against the appellant, which were culminated into adjudication order dated 31.01.2017, wherein service tax demand of ₹ 35,54,314/- along with interest was confirmed. The said amount deposited by the appellant prior to issuance of show-cause notice was appropriated in such order. Besides, the adjudication order was also imposed penalties under Section 77 and 78 of the Finance Act, 1994. On appeal against the adjudication order, learned Commissioner (Appeals) vide impugned order dated 12.03.2018 has upheld the adjudged demand confirmed against the appellant. Thus, the appellant has preferred this appeal before this Tribunal. 2. Learned Consultant appearing for the appellant, at th

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authoritative judgements pronounced by the Hon'ble Supreme Court. 4. Heard both sides and perused the records. 5. It is an admitted fact on record that the appellant had received the taxable services from over-seas entities and was liable to pay service tax under Section 66A of the Act, as recipient of service, under reverse charge mechanism. Since the appellant did not pay the service tax attributable to receipt of taxable service, the CERA audit officers have rightly pointed out such mistakes. Being a Service Tax registered assessee, the appellant was required to comply with the statutory provisions, including payment of service tax within the stipulated time frame. It is not the case of the appellant that for the first time it had re

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2018 (10) TMI 1077 – CESTAT MUMBAI – TMI – 100% EOU – Refund of CENVAT Credit – refund was rejected on the ground that availment of CENVAT Credit for the disputed period was not reflected in the ST-3 returns and the returns filed at the end of the quarter showed the available credit balance as “zero” – N/N. 27/2012-CE (NT) dated 18.06.2012 – Held that:- Since the appellant claimed that revised returns were filed manually and the same were available with the department for necessary verification, the matter should be remanded to the original authority for verification of ST-3 returns manually filed by the appellant and the input service invoices, based on which credit was availed by the appellant – appeal allowed by way of remand. – Appeal No. ST/86921 & 86923/2018 – A/87458-87459/2018 – Dated:- 25-9-2018 – Mr. S.K. Mohanty, Member (Judicial) Shri Haren Pandya, C.A. for appellant Shri O.M. Shivdikar, Asst. Commr (AR) for respondent ORDER Per: S.K. Mohanty These appeals are directed aga

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Revenue that the appellant had not followed the procedures prescribed under statute, more specifically, as provided under Notification No. 27/2012-CE (NT) dated 18.06.2012. 3. Learned Consultant appearing for the appellant submits that the appellant had exported the entire output service and since it was not able to utilize the input credit, the refund applications were filed claiming refund of service tax paid on the input services. He further submits that due to over sight, the ST-3 returns filed electronically were not reflected the particulars of available CENVAT Credit and on pointing out such mistake by the department, manual returns were filed, incorporating the credit particulars therein. He further submits that based on the records maintained by the appellant, the Chartered Accountant's firm had also certified export of service by the appellant and also availment of CENVAT Credit on the input services used for export of the service. Thus, he contended that refund benefit

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re filed manually and the same were available with the department for necessary verification, I am of the view that the matter should be remanded to the original authority for verification of ST-3 returns manually filed by the appellant and the input service invoices, based on which credit was availed by the appellant. If the records maintained by the appellant demonstrate that the input services were used / utilized for export of service, the refund benefit should be extended by the original authority under Rule 5 of the Rules. 7. In view of the above, after setting aside the impugned order, the matter is remanded to the original authority for deciding the issue afresh, in line with the above observations. Needless to say that opportunity should be granted to the appellant before deciding the issue afresh. 8. In the result, appeals are allowed by way of remand. (Order dictated in Court) – Case laws – Decisions – Judgements – Orders – Tax Management India – taxmanagementindia – taxma

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2018 (10) TMI 1312 – AUTHORITY FOR ADVANCE RULING, KERALA – 2018 (18) G. S. T. L. 367 (App. A. A. R. – GST) – Rate of GST – Classification of the commodity – commodity 'Ada' – whether the commodity “Ada” should be classified under the HSN Code 1902 along with “Seviyan (Vemicelli)” attracting GST at the rate of 5% or should be classified under residual entry at Sl No. 453 of the Third Schedule of Notification No. 01/2017 – Central Tax (Rate) dated 28.06.2017 and State Government Notification No. 360/2017 attracting 18% GST?
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Held that:- The applicable rule in this case is Rule 4 and as per the same, 'Ada' is to be classified under the heading appropriate to the goods to which it is most similar in character.
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The product, “Ada”, in sum and substance, is something akin, i.e., similar in character to “Vermicelli”. Both are made from 'maida or rice flour' or 'maida and rice flour' and are manufactured through an identical process and “ada” is used for giving richness to certain

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acting 5% GST. – CT/3368/2018-C3 Dated:- 25-9-2018 – Pullela Nageswara Rao, IRS, Member And Rajan N. Khobragade IAS, Member ORDER M/s. Ramachandran Bror, Kollam, a wholesale distributor of Ada in Kollam District (hereinafter called the applicant) is a registered person having GSTIN 32AAJFM1969P1ZP. The applicant had preferred an application on 20.02.2018 for Advance Ruling on the rate of tax of the commodity 'Ada'. 2. The applicant had argued that usage of Ada is same as that of "seviyan (vermicelli) i.e., to make sweet kheer or palada payasam or ada pradhaman. Ada is one of the grocery goods, mainly used by Keralites to prepare a sweet kheer or payasam otherwise called pradhaman. The ada is produced from rice flour or maida and no other ingredients are added. 3. In support of their claim, the applicant had produced a copy of the judgment dated 23.04.1987 of Tamil Nadu Sales Tax Appellate Tribunal, Madurai Bench in the case of Meenakshi Cottage Industries Vs State of Tami

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da", the matter has been referred to the Appellate Authority for Advance Ruling in terms of subsection (5) of Section 98 of the CGST/KGST Act, 2017 for hearing and decision on the classification of the said commodity. 6. A personal hearing was granted to the applicant on 13.09.2018. On the basis of the facts disclosed in the application and the oral/written submissions made at the time of personal hearing, it was decided to admit the application and the contentions raised by the applicant were examined. 7. Seviyan (Vermicelli) is a commodity produced from maida and is used for the purpose of giving richness to Kheer / Payasam. "Ada" is also a commodity produced from maida or rice flour or a mixture of maida and rice flour and is used for the purpose of giving richness to some regional varieties of payasams; Known as "Ada Pradhaman" and "Palada Pradhaman". In other words, "Seviyan (Vermicelli)" and "Ada" are produced from maida or r

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ould be classified under residual entry at Sl No. 453 of the Third Schedule of Notification No. 01/2017 – Central Tax (Rate) dated 28.06.2017 and State Government Notification No. 360/2017 attracting 18% GST. 9. Sl No. 453 of Third Schedule reads as follows; "Any Chapter – Goods which are not specified in Schedule I, II, IV, V or VI." Therefore, it is evident that the entry is a residuary entry to classify commodities that are not classifiable under any of the other entries. 10. The Explanation appended to the Notification No. 01/2017 Central Tax (Rate) dated 28.06.2017 reads as follows; "Explanation:- (1) In this Schedule, tariff item, heading, sub-heading and Chapter shall mean respectively a tariff item, heading, sub-heading and Chapter as specified in the First Schedule to the Customs Tariff Act, 1975 (51 of 1975). (2) The rules for the interpretation of the First Schedule to the said Customs Tariff Act, 1975, including the Section and Chapter Notes and the General E

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goods in this Schedule shall be governed by the following principles: 1. The titles of Sections, Chapters and sub-chapters are provided for ease of reference only; for legal purposes, classification shall be determined according to the terms of the headings and any relative Section or Chapter Notes and, provided such headings or Notes do not otherwise require, according to the following provisions: 2. (a) Any reference in a heading to an article shall be taken to include a reference to that article incomplete or unfinished, provided that, as presented, the incomplete or unfinished articles has the essential character of the complete or finished article. It shall also be taken to include a reference to that article complete or finished (or falling to be classified as complete or finished by virtue of this rule), presented unassembled or disassembled. (b) Any reference in a heading to a material or substance shall be taken to include a reference to mixtures or combinations of that materi

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ures, composite goods consisting of different materials or made up of different components, and goods put up in sets for retail sale, which cannot be classified by reference to (a), shall be classified as if they consisted of the material or component which gives them their essential character, in so far as this criterion is applicable. (c) When goods cannot be classified by reference to (a) or (b), they shall be classified under the heading which occurs last in numerical order among those which equally merit consideration. 4. Goods which cannot be classified in accordance with the above rules shall be classified under the heading appropriate to the goods to which they are most akin. 14. A perusal of the para supra and the application of the same with respect to the facts in the instant case, it is evident that the applicable rule in this case is Rule 4 and as per the same, 'Ada' is to be classified under the heading appropriate to the goods to which it is most similar in chara

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in Para 3, inter alia, observed as under; "The question before us is whether the department is right in claiming that the items in question are dutiable under Tariff Entry 68. This, as mentioned already, is the residuary entry and only such goods as cannot be brought under the various specific entries in the tariff should be attempted to be brought under the residuary entry. In other words, unless the department can establish that the goods in question can by no conceivable process of reasoning be brought under any of the tariff items, resort cannot be had to the residuary item." 18. In the case of Western India Plywoods Ltd Vs Collector of Customs reported in 2005 (188) ELT 365 SC the Hon ble Supreme Court, inter alia, held that; "Application of residuary item only when no other heading expressly or by necessary implication applies." 19. In the case of COMMISSIONER OF CENTRAL EXCISE vs M/s WOCKHARDT LIFE SCIENCES LTD reported in 2012 (277) ELT 299 (SC); the Hon&#39

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classification of that product under a fiscal schedule like the Central Excise Tariff. What is more important is whether the broad description of the article fits in with the expression used in the Tariff. Moreover, the functional utility and predominant or primary usage of the commodity which is being classified must be taken into account, apart from the understanding in common parlance. A commodity cannot be classified in a residuary entry, in the presence of a specific entry, even if such specific entry requires the product to be understood in the technical sense. A residuary entry can be taken refuge of only in the absence of a specific entry; that is to say, the latter will always prevail over the former. The combined factor that requires to be taken note of for the purpose of the classification of the goods are the composition, the product literature, the label, the character of the product and the use to which the product is put. 20. In the light of the discussion above, it can

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2018 (10) TMI 1313 – AUTHORITY FOR ADVANCE RULING, KERALA – 2018 (18) G. S. T. L. 373 (App. A. A. R. – GST) – Levy of GST – providing canteen services exclusively for their employees – Supply of services or not – scope of “supply” and “consideration” – Held that:- The appellant company has admitted that they are serving food to the employees for cash, though there is no profit involved in the transaction. In spite of the absence of any profit, the activity of supplying food and charging price for the same from the employees would surely come within the definition of “supply” as provided in Section 7(1)(a) of the GST Act, 2017. Consequently, the appellant would definitely come under the definition of “supplier” as provided in subsection (105) of Section 2 of the GST Act, 2017.
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Moreover, since the appellant recovers the cost of food items from their employees, there is “consideration” as defined in Section 2(31) of the GST Act, 2017.
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Ruling:- The supply of food items to the

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the definition of outward supplies and are taxable under Goods & Services Tax Act. 2. The applicant is a Private Limited Company engaged in the manufacture and sale of foot wear. It was submitted that they are providing canteen services exclusively for their employees. They incur the canteen running expenses for a month and recover the same from their employees without any profit margin on the same. 3. The applicant has further submitted that the service provided to the employee is not being carried out as a business activity and it is according to the provisions in the Factories Act, 1948. As per Section 46 of the said Act, any factory employing more than 250 workers is required to provide canteen facility to its employees. The applicant detailed activity as follows:- a) The space for the canteen is provided by the Company, inside the factory premises. b) The cook is employed by the Company and is paid monthly salary. c) The vegetables and other items required for preparing the fo

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thout making any profit. 5. The company also referred to the erstwhile Service Tax Mega Exemption Notification No.25/2012-ST dated 20.06.2012 issued by the Government of India whereby services in relation to supply of food or beverages by a canteen maintained in a factory covered under the Factories Act, 1948 was exempted under the Service Tax Law. 6. The Authority for Advance Ruling had deliberated on the issue raised and after hearing the authorized representative of the applicant elaborated as follows; "10. Schedule II to the GST Act describes the activities to be treated as supply of goods or supply of services. As per clause 6 of the Schedule, the following composite supply is declared as supply of service. "supply, by way of or as part of any service or in any other manner whatsoever, of goods, being food or any other article for human consumption or any drink (other than alcoholic liquor for human consumption), where such supply or service is for cash, deferred payment

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or both, whether by the recipient or by any other person but shall not include any subsidy given by the Central Government or a State Government: Provided that a deposit given in respect of the supply of goods or services or both shall not be considered as payment made for such supply unless the supplier applies such deposit as consideration for the said supply. Since the applicant recovers the cost of food from its employees, there is consideration as defined in Section 2 (31) of the GST Act, 2017." 7. The Advance Ruling authority also clarified that "It is true that in the pre-GST period, vide sl.No.19 and 19A of Notification No. 25/2012-ST dated 20.06.2012 as amended by the Notification No. 14/2013-Service Tax dated 22.10.2013 the 'services provided in relation to serving of food or beverages by a canteen maintained in a factory covered under the Factories Act, 1948 (63 of 1948), having the facility of air-conditioning or central air-heating at any time during the yea

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oyment is neither a supply of goods, nor a supply of services and that any consideration received by the employee from his employer for the services rendered in relation to the employment is outside the purview of GST. A press release dated 10.07.2017 issued by the Central Board of Indirect Taxes and Customs (CBIC) was also submitted. 11. The party also produced a copy of the press release issued by the CBEC to clarify the applicability of Reverse Charge under section 9(4) of the GST Act, 2017 on the purchase of ornaments by a jeweller from a consumer. It reads as follows: "Even though the sale of gold by an individual is for a consideration, it cannot be said to be in the course of or in furtherance of his business (as selling old gold jewellery is not the business of the said individual), and hence does not qualify to be a supply perse. Accordingly, the sale of old jewellery by an individual to a jeweller will not attract the provisions of section 9(4) and the jeweller will not

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limited company manufacturing foot wears. As per the requirement of Factories Act, for an industry having more than 250 employees, canteen facility shall be provided. To comply with the statutory requirements, the company provides food to the employees and cash is recovered from their salary. The authority below classified it as supply in furtherance of business. The Telengana High Court had delivered a judgement in favour of M/s. Bhima case stating that subsidized food to employees and realization of cost of wages is an industrial obligation it does not amount to service. Government of India issued a press release on 10-07-2017, stating that supply by employer to employee is in the course of furtherance of employment and not in the course of furtherance of business and comes under Schedule III, which is not liable to tax." 14. The contentions raised by the appellant have been examined in detail. The crucial aspects to be considered in this case are the elements of "supply&q

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the said Order held that "the petitioner has paid the value added tax on the value of the food supplied to its workers. In respect of some assessment years, they have even been imposed with a penalty under the Andhra Pradesh Value Added Tax Act, 2005. Therefore, once the State Authorities have treated the supply of food to the workers of the petitioner as sale, it is not open to the respondents to treat the same as service and impose a liability. " 16. It is apparent from the extract supra that, in the above referred case, the food provided to the employees was already taxed under the erstwhile Value Added Tax and thereby the Hon'ble High Court held that the same could not be subjected to Service Tax. Hence the Hon'ble Court had decided upon a matter where the issue of double taxation was a relevant fact. As there is no possibility of such double taxation in the GST regime, it is evident that the facts of the Bhimas Hotels case cannot be considered to be in pari-mate

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