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Gurugram Zonal Unit of the Directorate General of GST Intelligence (DGGI) arrests two businessmenin a case of fraudulent issuance of Input Tax Credit (ITC) invoices without actual supply of goods, involving evasion of approximately ₹ 79.21 crore on the taxable value of concocted supplies of ₹ 450 crore – Goods and Services Tax – GST – Dated:- 20-9-2018 – Gurugram Zonal Unit of the Directorate General of GST Intelligence (DGGI) have arrested two businessmen, namely, Sh. Vikas Goel, Director of M/s Mica Industries Ltd, Delhi and Bhiwadi & M/s. Satellite Cables Pvt Ltd., Bhiwadi and Sh. Raju Singh Proprietor of M/s Galaxy Metal Products on 14.09.2018 in a case of fraudulent issuance of Input Tax Credit invoices without actual s

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Industries, Delhi for issuing such fake invoices. They are involved in issuing fake bills/invoices to each other in a Circular manner without any concomitant movement of goods or payments for such transactions thereby wrongful availing and utilizing fake ITC. On verification of corroborated documentary evidences and statements of various persons it was established that there was no movement of goods against the invoices raised. Both the Directors of companies and both the proprietor of firms have admitted that all payments for the transactions were made by third party adjustments and which were done at the end of the year. There was no actual payment invoice wise. Further investigations are underway and the quantum of evasion is likely to g

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Customs – Sanction of pending IGST refund claims where the records have not been transmitted from the GSTN to DG Systems-reg. – TMI Updates – Highlights

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Goods and Services Tax – Started By: – Archna Gupta – Dated:- 20-9-2018 Last Replied Date:- 21-9-2018 – Dear Sir/ MadamPlease clarify that is there any difference between Non-Taxable supply and Non-GST supply with examples.RegardsArchna Gupta – Reply By SHIVKUMAR SHARMA – The Reply = 1.Supply of Goods & Services That have Nil GST is Called Non taxable Supply.Example: Grains ,Salt,Jaggery Etc.2.Goods & Services that does not come under the purview of GST while other taxes may be applicablecalled Non GST Supply.Example : Petrol,Diesel,Alcohol Etc. – Reply By Archna Gupta – The Reply = Dear Mr. SharmaIn the definition of exempt supply the terms Nil rated and non taxable supply are used differently so these two terms can not be same. R

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he business. buy indian facebook likes – Reply By Nitika Aggarwal – The Reply = Dear Mam, As per section 2(78) of CGST Act, 2017 non taxable supply means a supply of goods or services or both which is not leviable to tax under this Act or under the Integrated Goods and Services Tax Act. Meaning thereby, such supply of goods or services are first taxable but due to exemption notifications issued on timely basis, they are not exigible to tax. Like supply of cereal grains are not leviable to tax because they are covered under the exemption notification no. 02/2017-CT(rate) dated 28.06.2018. Non GST Supplies are those supplies on which the act itself not applicable. They are kept outside the purview of whole goods and service tax act. – Discuss

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Goods and Services Tax – Started By: – Ashok Swain – Dated:- 20-9-2018 Last Replied Date:- 21-9-2018 – Dear Experts, Kindly clarify whether TDS under GST has to be deducted from the payments made to foreign supplier on a/c of import of goods. The location of foreign supplier is outside India but the place of supply is within India. But as per Section 51 of CGST Act, no deduction shall be made if the location of the supplier and the place of supply is in a State which is different from the State of registration of the recipient. Also, the foreign supplier will not have any GSTIN and hence there is no scope for him to get the refund through elcetronic cash ledger. Please contribute your inputs on this. Ashok – Reply By Yash Jain – The Reply

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der sub-section (2) shall be such as may be prescribed, and shall include supplies on which the recipient is liable to pay tax on reverse charge basis, transactions in securities, sale of land and, subject to clause (b) of paragraph 5 of Schedule II, sale of building. Thus in respect of the supplier every supplies attracting RCM is exempt supplies. As the recipient of the supplies couldn't deduct tax on exempt supplies.. There is no question on deducting Tax on Import or supplies on which the tax is paid on RCM basis – Reply By DR.MARIAPPAN GOVINDARAJAN – The Reply = You are not required to recover tax under GST. – Reply By Ashok Swain – The Reply = Thank you Experts for the clarification. As the subject is taxed under RCM, there should

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Goods and Services Tax – Levy of GST – liquidated damages for delay in erection, testing and commissioning – independent supply or not? – The appellant could have opted for harsh measures like termina

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Goods and Services Tax – Rate of tax – supply and setting up of ‘solar power generating system’ – Supply of the said turnkey EPC contract is a ‘composite supply’ u/s.2(30) of the CGST Act, 2017. The s

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IMPORT OF MEIS LICENSE UNDER GST – Goods and Services Tax – Started By: – Kusalava InternationalLimited – Dated:- 20-9-2018 Last Replied Date:- 21-9-2018 – We imported meis license from Taiwan.In GSTR

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Goods and Services Tax – Started By: – sachin poojary – Dated:- 20-9-2018 Last Replied Date:- 22-9-2018 – WHAT IS THE TIME PERIOD REQUIRED TO UPDATE IN CUSTOMERS GSTR2 WHEN AMENDMENT DONE IN GSTR1 B2B INVOICES – Reply By Yash Jain – The Reply = Hi, It's auto populated and is done immediately. Rgds – Reply By DR.MARIAPPAN GOVINDARAJAN – The Reply = I endorse the views of Shri Yash – Reply By sachin poojary – The Reply = I have done correction in gstr1 b2b invoice on 18/07/2018 but till date

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Goods and Services Tax – Started By: – ROHIT GOEL – Dated:- 20-9-2018 Last Replied Date:- 21-9-2018 – One of our client is having registration on amazon for sale of goods for which he has taken registration in GST. However sale during last year was NIL as such he has not filed GST returns i.e. GSTR-3B and GSTR-1 and now he wants to surrender registration. At the time of surrender portal is showing error of GSTR-3B and at the time of filing GSTR-3B system is calculating huge penalties. Please pr

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Goods and Services Tax – Started By: – Muralidharan Arumbakkam – Dated:- 20-9-2018 Last Replied Date:- 27-10-2018 – Dear SirMy son has sent for my maintenance from US in US$ to be credited to his NRE account for my maintenance. It is not a business receipt at all. I used to draw for my personal expenses only. I had not asked for any FIRC also. In the circumstances, whether he should pay CGST and SGST in respect of the remittance. Bankers have debited his account. If you could share the relative

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Goods and Services Tax – GST – By: – Mr. M. GOVINDARAJAN – Dated:- 20-9-2018 – Date of effect The provisions of GST came into effect from 01.07.2017. Section 3 of the Central Goods and Services Tax Act, 2017 ( Act for short) provides that different dates may be appointed for different provisions of this Act and any reference in any such provision to the commencement of this Act shall be construed as a reference to the coming into force of that provision. Vide Notification No. 33/2017-Central Tax, dated 15.09.2017, the Central Government appointed 18.09.2017 as the date on which the provisions of sub-section (1) of section 51 of the said Act shall come into force with respect to persons specified under clauses (a) and (b) of sub-section (1) of section 51 of the said Act and the persons specified below under clause (d) of sub-section (1) of section 51 of the said Act, namely:- an authority or a board or any other body, – set up by an Act of Parliament or a State Legislature; or establis

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ishment of the Central Government or State Government; or local authority; or Governmental agencies; or persons asnotified by the Government vide Notification No. 50/2018-Central Tax, dated 13.09.2018- an authority or a board or any other body – set up by an Act of Parliament or a State Legislature; or established by any Government, with 51% or more participation by way of equity or control, to carry out any function; Society established by the Central Government or the State Government or a Local Authority under the Societies Registration Act, 1860 Public sector undertakings. to deduct tax from the payment made or credited to the suppliers of taxable goods or services or both. No deduction shall be made if the location of the supplier and the place of supply is in a State or Union territory which is different from the State or as the case may be, Union territory of registration of the recipient. Registration Section 24 provides for compulsory registration under the Act for certain per

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igned or verified through electronic verification code, electronically in Form GST REG-14, along with the documents relating to such change at the common portal, either directly or through a Facilitation Centre notified by the Commissioner. If the particulars furnished is correct the proper officer will cause amendment of registration certificate Where the proper officer is of the opinion that the amendment sought is either not warranted or the documents furnished therewith are incomplete or incorrect, he may, within a period of fifteen working days from the date of the receipt of the application in Form GST REG-14, serve a notice in Form GST REG-03, requiring the registered person to show cause, within a period of seven working days of the service of the said notice, as to why the application submitted shall not be rejected. The registered person shall furnish a reply to the notice to show cause, in Form GST REG-04, within a period of seven working days from the date of the service of

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er section 51 the said officer may cancel the registration and such cancellation shall be communicated to the said person electronically in Form GST REG-08. The proper officer shall follow the procedure as provided in rule 22 for the cancellation of registration. Rate of tax The rate of tax to be deducted by the persons concerned is 1% from the payment made or credited to the suppliers of taxable goods or services or both. Threshold limit The tax is to be deducted only if the value of supply under a contract exceeds ₹ 2.50 lakhs. The value of supply shall be taken as the amount excluding the central tax, State tax, Union territory tax, integrated tax and cess indicated in the invoice. Due date for payment of tax deducted The amount deducted as tax under section 51 shall be paid to the Government by the deductor within 10 days after the end of the month in which such deduction is made, in such manner as may be prescribed. If any deductor fails to pay to the Government the amount d

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Tax Deduction at Source Certificate 1. TDS Certificate No. – 2. GSTIN of deductor – 3. Name of deductor – 4. GSTIN of deductee- 5. (a) Legal name of the deductee – (b) Trade name, if any – 6. Tax period in which tax deducted and accounted for in GSTR-7 – 7. Details of supplies Amount of tax deducted – Value on which tax deducted Amount of Tax deducted at source (Rs.) Integrated Tax Central Tax State /UT Tax 1 2 3 4 Signature Name Designation Office – The certificate referred to in sub-section (3) of section 51 shall be made available electronically to the deductee on the common portal in FORM GSTR-7A on the basis of the return furnished. Late fee If any deductor fails to furnish to the deductee the certificate, after deducting the tax at source, within five days of crediting the amount so deducted to the Government, the deductor shall pay, by way of a late fee, a sum of ₹ 100/- per day from the day after the expiry of such five days period until the failure is rectified, subject

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Goods and Services Tax – GST – By: – AttnVivek Jalan – Dated:- 20-9-2018 – Part I: Commentary on Features of Audit Report under GST – Form 9C Form GSTR – 9C has been divided into 2 parts: Part – A: Reconciliation statement; Part – B: Certification by auditor; We hereby analyse Pt II as under – Part A : Pt II : Reconciliation of turnover declared in audited annual financial statement with turnover declared in annual return (GSTR – 9) 5A: Entities having multiple GSTIN s will have to derive their GSTIN wise turnover which has been reported in the financial statements for its reconciliation with the annual return. For Eg: an entity having Registrations in West Bengal (WB), Haryana (HY), Maharashtra(MH) and Karnataka(KT) and it is preparing the report for MH, then it has to deduct the turnovers of other states to arrive ah MH s turnover. It is specifically mentioned that reference to audited Annual Financial Statement includes reference to books of accounts in case of persons / entities h

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s it has not been taken in turnover; the same needs to be disclosed here. 5D: Details of supplies falling under Schedule I of the CGST Act, 2017 on which tax has been paid but not included in turnover reported in annual audited financial statements. For example, inter-branch transfers of goods, Principle to Agent Supply, Free Issues taxable under GST, etc. It is important to note that incase any transaction has been skipped but it is liable to tax, it also needs to be reported here. 5E: Identification of invoices issued in the relevant financial year for which credit notes have been issued in the subsequent financial year. The same is also required to be collated for table no. 11 of annual return (GSTR 9). For Eg: It is to be noted that only those Credit Notes which result in a difference between books and Annual return needs to be disclosed here. 5F: Trade discounts which are accounted for in the audited Annual Financial Statement but on which GST was leviable (being not permissible)

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ference in valuation of supplies shall be declared here. Eg: incase of Forex dealers, Race Courses, sellers of Lottery tickets, etc where special valuation methods are adopted. 5N: Any difference between the turnover reported in the Annual Return (GSTR 9) and turnover reported in the audited Annual Financial Statement due to foreign exchange fluctuations shall be declared here. The difference due to Forex fluctuations do not effect GST turnover as under Rule 34 GST is paid at specific Forex rates. 5O: Any difference between the turnover reported in the Annual Return (GSTR9) and turnover reported in the audited Annual Financial Statement due to reasons not listed above shall be declared here. Eg: On sale of Capital Goods, only profit/loss is recognized in Financial Statements, although under GST, Tax is paid on full amount. The final turnover derived post addition / deletion of above details should match with the turnover disclosed in the annual returns. In case there is a difference be

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Goods and Services Tax – 52/2018 – Dated:- 20-9-2018 – Government of India Ministry of Finance (Department of Revenue) Central Board of Indirect Taxes and Customs Notification No. 52/2018 – Central Tax New Delhi, the 20th September, 2018 G.S.R. 900 (E).- In exercise of the powers conferred by sub-section (1) of section 52 of the Central Goods and Services Tax Act, 2017 (12 of 2017), the Central Government, on the recommendations of the Council, hereby notifies that every electronic commerce ope

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Goods and Services Tax – 02/2018 – Dated:- 20-9-2018 – Government of India Ministry of Finance (Department of Revenue) Central Board of Indirect Taxes and Customs Notification No. 02/2018 – Integrated Tax New Delhi, the 20th September, 2018 G.S.R. 901 (E).- In exercise of the powers conferred by the second proviso to section 20 of the Integrated Goods and Services Tax Act, 2017 (13 of 2017), read with sub-section (1) of section 52 of the Central Goods and Services Tax Act, 2017 (12 of 2017), th

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Goods and Services Tax – 23/2018 – Dated:- 20-9-2018 – Government of India Ministry of Finance (Department of Revenue) Notification No. 23/2018- Central Tax (Rate) New Delhi, the 20th September, 2018 G.S.R. 906 (E).- In exercise of the powers conferred by sub-section (3) of section 11 of the Central Goods and Services Tax Act, 2017 (12 of 2017), the Central Government, on the recommendations of the Council, and on being satisfied that it is necessary so to do for the purpose of clarifying the scope and applicability of the notification of the Government of India, in the Ministry of Finance (Department of Revenue) No.12/2017- Central Tax (Rate), dated the 28th June, 2017, published in the Gazette of India, Extraordinary, Part II, Section 3,

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Goods and Services Tax – 24/2018 – Dated:- 20-9-2018 – Government of India Ministry of Finance (Department of Revenue) Notification No. 24/2018-Integrated Tax (Rate) New Delhi, the 20th September, 2018 G.S.R. 907 (E).- In exercise of the powers conferred by sub-section (3) of section 6 of the Integrated Goods and Services Tax Act, 2017 (13 of 2017), the Central Government, on the recommendations of the Council, and on being satisfied that it is necessary so to do for the purpose of clarifying the scope and applicability of the notification of the Government of India, in the Ministry of Finance (Department of Revenue) No. 9/2017- Integrated Tax (Rate), dated the 28thJune, 2017, published in the Gazette of India, Extraordinary, Part II, Sect

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Goods and Services Tax – 23/2018 – Dated:- 20-9-2018 – Government of India Ministry of Finance (Department of Revenue) Notification No. 23/2018-Union Territory Tax (Rate) New Delhi, the 20th September, 2018 G.S.R. 908 (E).- In exercise of the powers conferred by sub-section (3) of section 8 of the Union Territory Goods and Services Tax Act, 2017 (14 of 2017), the Central Government, on the recommendations of the Council, and on being satisfied that it is necessary so to do for the purpose of clarifying the scope and applicability of the notification of the Government of India, in the Ministry of Finance (Department of Revenue) No.12/2017- Union Territory Tax (Rate), dated the 28th June, 2017, published in the Gazette of India, Extraordinar

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2018 (9) TMI 1330 – GUJARAT HIGH COURT – TMI – CENVAT credit – main grievance of the petitioners is that the credit of the duties for the period prior to 01.07.2017 though reflected in the declaration filed by the petitioner no.1 in Tran1 form is not shown in the electronic credit ledger account – Held that:- NOTICE, returnable on 11.10.2018. Direct service is permitted. – R/SPECIAL CIVIL APPLICATION NO. 14428 of 2018 Dated:- 20-9-2018 – MR AKIL KURESHI AND B N KARIA, JJ. For The Petitioner :

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2018 (9) TMI 1331 – GUJARAT HIGH COURT – 2018 (18) G. S. T. L. J217 (Guj.) – Prayer for payment of GST in installments due to financial difficulty – Held that:- NOTICE, returnable on 17.10.2018. On the condition that before the returnable date the petitioner deposits 20% of the outstanding amount and further continues to deposit 5% thereof between 1st and 5th of every month thereafter until any other order is passed, there shall be stay against coercive recoveries of the dues. Direct service is permitted. – R/SPECIAL CIVIL APPLICATION NO. 14638 of 2018 Dated:- 20-9-2018 – MR AKIL KURESHI AND MR B.N. KARIA, JJ. For The Petitioner : MR ZUBIN F BHARDA (159) ORAL ORDER (PER : HONOURABLE MR.JUSTICE AKIL KURESHI) 1. Petitioner has to pay GST du

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GST – States – F.12(56)FD/Tax/2017-Pt-II-117 – Dated:- 20-9-2018 – GOVERNMENT OF RAJASTHAN FINANCE DEPARTMENT (TAX DIVISION) NOTIFICATION Jaipur, dated: September 20, 2018 In exercise of the powers conferred by sub-section (1) of section 52 of the Rajasthan Goods and Services Tax Act, 2017 (Act No. 9 of 2017), the State Government, on the recommendations of the Council, hereby notifies that every electronic commerce operator, not being an agent, shall collect an amount calculated at a rate of h

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GST – States – G.O.Ms.No. 476 – Dated:- 20-9-2018 – REVENUE DEPARTMENT (COMMERCIAL TAXES-II) [G.O.Ms.No. 476, Revenue (Commercial Taxes-II) 20th September, 2018.] NOTIFICATION In exercise of the powers conferred by sub – section (3) of Section 1 of the Andhra Pradesh Goods and Services Tax Act, 2017 (Act No.16 of 2017) and in supersession of the notification in GO.Ms.No.458, Revenue (CT-II) Department Dated : 16th October, 2017, except as respects things done or omitted to be done before such s

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GST – States – 23/2018-State Tax (Rate) – Dated:- 20-9-2018 – FINANCE DEPARTMENT Madam Cama Marg, Hutatma Rajguru Chowk Mantralaya, Mumbai 400 032, dated the 20th September 2018 NOTIFICATION Notification No. 23/2018-State Tax (Rate) MAHARASHTRA GOODS AND SERVICES TAX ACT, 2017. No. GST. 1018/C. R. 95/ Taxation-1.- In exercise of the powers conferred by sub-section (3) of section 11 of the Maharashtra Goods and Services Tax Act, 2017 (Mah. XLIII of 2017), the Government of Maharashtra, on the recommendations of the Council, and on being satisfied that it is necessary so to do for the purpose of clarifying the scope and applicability of the Notification No. MGST-1017/C. R. 103(11)/Taxation-1 [Notification No. 12/2017-State Tax (Rate)], dated

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GST – States – G.O. Ms. No. 124 – Dated:- 20-9-2018 – COMMERCIAL TAXES AND REGISTRATION (B1) DEPARTMENT G.O. Ms. No. 124 Dated: 20.09.2018 Purattasi – 4 Thiruvalluvar Aandu, 2049 NOTIFICATION In exercise of the powers conferred by sub-section (3) of section 11 of the Tamil Nadu Goods and Services Tax Act, 2017 (Tamil Nadu Act 19 of 2017), the Governor of Tamil Nadu, on the recommendations of the Council, and on being satisfied that it is necessary so to do for the purpose of clarifying the scop

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GST – States – G.O. Ms. No. 125 – Dated:- 20-9-2018 – COMMERCIAL TAXES AND REGISTRATION (B1) DEPARTMENT G.O. Ms. No. 125 Dated: 20.09.2018 Purattasi – 4 Thiruvalluvar Aandu, 2049 NOTIFICATION In exercise of the powers conferred by sub-section (1) of section 52 of the Tamil Nadu Goods and Services Tax Act, 2017 (Tamil Nadu Act 19 of 2017), the Governor of Tamil Nadu, on the recommendations of the Council, hereby notifies that every electronic commerce operator, not being an agent, shall collect

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2018 (9) TMI 1642 – ALLAHABAD HIGH COURT – [2018] 59 G S.T.R. 82 (All) – Facility of deferment of payment of the Value Added Tax denied – Sick Industrial Unit – Impact of migration from VAT regime to GST regime – modified Rehabilitation Scheme sanctioned by BIFR on 24.09.2013 – Held that:- It appears that while passing the impugned order dated 09.05.2018 whereby the Government Order dated 10.02.2014 has virtually been declared to be inoperative, the authority concerned does not appear to have taken into account the effect of the repeal and saving clause contained in section 174 of U.P. Goods and Services Tax Act, specially sub section 2(c) of section 174 of the said Act. The impugned order dated 09.05.2018 only states that under section 71 of the then prevalent U.P. Value Added Tax Act, the powers were vested in the State Government to defer the liability of payment of Value Added Tax in case of the sick units declared as such under the Act – What is, thus, noticeable here is that the

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uarters, Lucknow, whereby the facility of deferment of payment of the Value Added Tax granted earlier by the State Government vide its order dated 10.02.2014 has been declared to be not available, as a result of which the petitioner which is a sick unit declared, as such under the Sick Industrial Companies (Special Provisions) Act, 1985 (hereinafter referred to as 'the Act') is faced with the demand to pay the taxes. The petitioner is a producer of Vanaspati Ghee i.e. edible oil. However, for certain reasons, an application was moved under the Act by the petitioner-unit in the year 2001 for declaring it to be a sick unit with a prayer for formulation of rehabilitation scheme. On the said application, the Board of Industrial and Financial Reconstruction (BIFR) declared the unit to be sick on 07.06.2006 and further proceeded to frame Rehabilitation Scheme under section 17(3) of the Act. As per the said rehabilitation scheme sanctioned by the BIFR, the Value Added Tax dues were de

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ides for the said deferment and further clarifies that the dues of Value Added Tax shall be payable starting from the 6th years from the date of sanction of the modified Rehabilitation Scheme. Accordingly, in terms of the said Government Order dated 10.02.2014 the benefit of the said deferment was enjoyed by the petitioner-unit. In the meantime, U.P. Value Added Tax was repealed on 01.07.2017 on enforcement of U.P. Goods and Services Tax Act. Section 174 of U.P. Goods and Services Tax Act provides for repeal and saving clause which is quoted hereunder: "174.Repeal and Saving 1. Save as otherwise provided in this Act, on and from the date of commencement�of this Act, the Central Excise Act, 1944 (1 of 1944) (except as respects goods included in entry 84 of the Union List of the Seventh Schedule to the Constitution), the Medicinal and Toilet Preparations (Excise Duties) Act, 1955 (16 of 1955), the Additional Duties of Excise (Goods of Special Importance) Act, 1957 (58 of 1957

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said notification is rescinded on or after the appointed day; or (d) affect any duty, tax, surcharge, fine, penalty, interest as are due or may become due or any forfeiture or punishment incurred or inflicted in respect of any offence or violation committed against the provisions of the amended Act or repealed Acts; or (e) affect any investigation, inquiry, verification (including scrutiny and audit), assessment proceedings, adjudication and any other legal proceedings or recovery of arrears or remedy in respect of any such duty, tax, surcharge, penalty, fine, interest, right, privilege, obligation, liability, forfeiture or punishment, as aforesaid, and any such investigation, inquiry, verification (including scrutiny and audit), assessment proceedings, adjudication and other legal proceedings or recovery of arrears or remedy may be instituted, continued or enforced, and any such tax, surcharge, penalty, fine, interest, forfeiture or punishment may be levied or imposed as if these Act

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epealed on enforcement of U.P. Goods and Services Tax Act with effect from 01.07.2017. Thus, the order dated 10.02.2014 under which the deferment of the Value Added Tax dues was granted to the petitioner's unit in terms of the Rehabilitation Scheme formulated by the BIFR on 24.09.2013 is also saved. However, it appears that while passing the impugned order dated 09.05.2018 whereby the Government Order dated 10.02.2014 has virtually been declared to be inoperative, the authority concerned does not appear to have taken into account the effect of the repeal and saving clause contained in section 174 of U.P. Goods and Services Tax Act, specially sub section 2(c) of section 174 of the said Act. The impugned order dated 09.05.2018 only states that under section 71 of the then prevalent U.P. Value Added Tax Act, the powers were vested in the State Government to defer the liability of payment of Value Added Tax in case of the sick units declared as such under the Act. It further states tha

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