Fertility Program Costs for Milk Animals Classified as Revenue Expenditure, Eligible for Income Tax Deduction.
Case-Laws
Income Tax
Nature of expenditure – fertility improvement program among
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Implication of GST on Transfer of Business – At Glance
By: – Dinesh Kumar
Goods and Services Tax – GST
Dated:- 27-10-2018
1. Prologue
Corporate Restructuring through amalgamation, arrangement, mergers, acquisition and takeover has become vital to corporate strategy to day. To attain accelerated growth, corporate in India now a days resort more towards restructuring strategies. The Goods and Services Tax (GST) has been envisaged as an efficient tax system and it affects the structuring of the various operations in India. Corporate transaction in pursuance of amalgamation, arrangement, mergers, acquisition and takeover are also affected by GST. Thus, the industries are required to analyse the provisions of the GST Law and its impact on their business.
2. Registration
Registration of any business entity under the GST Law implies obtaining a unique number from the concerned tax authorities for the purpose of collecting tax on behalf of the government and to avail Input t
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ates that in case of change of constitution of a registered taxable person on account of sale, merger, demerger, amalgamation, lease or transfer of business, the registered person would be allowed to transfer the unutilized input tax credit to transferor. In this context, the registered person is required to furnish the details of sale, merger, de-merger, amalgamation, lease or transfer of business in Form GST ITC-02 electronically on the Common Portal along with a request to transfer the unutilized input tax credit lying in his electronic credit ledger to the transferee. The transferee would accept the details so furnished by the transferor on the Common Portal and, upon such acceptance, the unutilized credit would be credited to his electronic credit ledger.
In the case of demerger, the input tax credit would be apportioned in the ratio of the value of assets of the new units as specified in the demerger scheme.
4. Itemised Sales
Where assets and liabilities of a business are tran
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to be treated as supply of goods or supply of services as referred to in Schedule II. Accordingly, transfer of business assets is supposed as supply.
The transfer of business is amounted to transfer of a part of the assets and not the whole business. Moreover, para 4(c) of the schedule II specifies that in case business is transferred as a going concern then it would not constitute as supply. However, in pursuance of Notification No. 12/2017 Central tax (rate) dt 28.06.2017 services, which are provided by way of transfer of a going concern as a whole or an independent part thereof, are exempted from GST. Thus, no GST would applicable on slump sale transaction as transfer of business on a going concern basis.
6. Liability of companies w.r.t. order of court or Tribunal
According to section 87 of the CGST Act, when two or more companies are amalgamated or merged in pursuance of an order of court or of Tribunal or otherwise and the order is to take effect from a date earlier to the dat
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on the sale of securities.
8. Summing Up
Goods and Services Tax have impact on each and every industry and business in India. Transfer of business under mergers, amalgamation and acquisitions do not attract any tax liability under GST regime, they are unlikely to impacted by indirect taxation. For calculating the Capital gains, the holding period is calculated from the date of original purchase of shares. The companies who opt for merger and acquisition, the liability to register arises on the date of transfer for transferee of a business as going concern. Further, GST Law stipulates transfer or sale of business assets can take place either as a slump sale or itemized sale. In case of change of constitution of a registered person on account of sale, merger, demerger etc, the unutilized ITC would be allowed to be transferred to transferee. Thus, GST Law brought the immense clarity on the taxability of business transfer and related aspect thereof.
Reply By Dinesh Tambde as =
In case
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RECENT ADVANCE RULINGS IN GST (PART-8)
By: – Dr. Sanjiv Agarwal
Goods and Services Tax – GST
Dated:- 27-10-2018
Advance rulings are important in any tax law as it provides a forum for clarification and possible interpretation of statutory provisions. Moreover, it conveys the legislative intention from the revenue's view point. Provisions of advance ruling are contained in section 95 to 106 of CGST Act, 2017 and State / UT GST enactment. Rules 103 to 107 of also provide for forms, manner, certification etc.
The Authority for Advance Rulings (AAR) have been set up in all the states and we have now over 200 advance rulings on different issues already pronounced by various State Authorities. The appellate mechanism for filing appeals against AAR rulings is also in place and we have about twenty such appellate orders confirming or modifying the AAR orders. One major issue presently being faced is about multiple authorities (equal to number of States), each pronouncing a ru
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whether this comes under 18% or exempted or any other taxes category?
In the instant case, on verification of record submitted by jurisdictional authority, it was found that proceedings were initiated well before filing of application before AAR and applicant himself admitted that they had preferred writ petition before High Court on same issue which was pending for disposal. The AAR ruled that the application did not qualify pre-requisitions for admission as per section 98(2) of CGST Act, 2017.
[Crux Bio Tech India (P.) Ltd., In re. ((2018) 6 TMI 462 (AAR- Andhra Pradesh);]
Advance ruling on issue not within the scope of authority
Where the applicant was engaged in the manufacture of textile yarn and it approached AAR to specify the complete procedure for supplies by DTA to Advance Authorization Holder and specify the applicability of Foreign Trade Policy 2015 2020 mid-term review and specify procedure for procuring goods from DTA against Advance Authorization.
It was observed t
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olicy 2015-2020 mid-term review and the related procedure. The applicant had sought a ruling for applicability of Foreign Trade Policy which was clearly beyond the ambit of Authority for Advance Ruling. Thus, the application was held to be not worthy of admission.
Thus, the application filed by the applicants, being beyond the scope of section 97(2), merit rejection at the stage of admission itself and was rejected.[Spentex Industries Ltd., In re, (2018) 8 TMI 285 (AAR- Madhya Pradesh); ].
Advance ruling on applicability of notifications and circulars not issued under CGST Act, 2017
Where the applicant had sought advance ruling on applicability of Notification dated 5.10.2017 issued by DIPP, Ministry of Commerce and Industry read with CBEC Circular No. 1060/9/2017-Cx. Dated 27th November 2017 in following situations:
* If the assessee takes over an eligible unit as a going concern under slump sale agreement and there is a change in the ownership of the unit which was availing the
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Doubt on GST on income on Service to Foreign company
Query (Issue) Started By: – Kailash Sahoo Dated:- 27-10-2018 Last Reply Date:- 30-10-2018 Goods and Services Tax – GST
Got 5 Replies
GST
Dear Expert,
I am a small proprietorship firm and my job is to supply services to my client based out in USA. My work nature of work is recruitment and I supply service by recruiting candidate for my client in USA. the candidates are in USA and the job requirements also in USA. I have a small team here and the entire income spend on my employees salary, and other office expenses.
So my doubt: is there any GST on consulting fees which I am receiving from my client in USA?
Reply By KASTURI SETHI:
The Reply:
GST is consumption based tax. Se
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l be treated as 'inter state supply', so GST will be levied as per sec 5 of IGST.
am here directing you to check whether it is qualify as 'export of service', if it qulaified as export of serive then it will be treated as 'Zero rated supply' as per sec 16 of IGST.
if it is zero rated, follow either of options given in same section.
dear experts am looking forward to your earliest response in this regard.
Thanks.
Reply By KASTURI SETHI:
The Reply:
Sh.Vamsi Krishna Ji,. Actually I was emphasising that it is export of service. There is no doubt that export of goods or services is inter-State supply. Procedure detailed by you is correct. I should have mentioned and
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Notifies the persons whose registration under the said Act has been cancelled by the proper officer on or before the 30th September, 2018 furnish the final return in FORM GSTR-10 of the said rules till the 31st December, 2018.
58/2018-State Tax Dated:- 27-10-2018 Himachal Pradesh SGST
GST – States
Himachal Pradesh SGST
Himachal Pradesh SGST
Government of Himachal Pradesh
Excise and Taxation Department
No. EXN-F(10)-31/2018
Dated: Shimla-2 the 27th October, 2018
Notification No
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The Karnataka Goods and Services Tax (Eleventh Amendment) Rules, 2018.
(04-U/2017) No. FD 47 CSL 2017 Dated:- 27-10-2018 Karnataka SGST
GST – States
Karnataka SGST
Karnataka SGST
FINANCE SECRETARIAT
NOTIFICATION(4-U/2017)
No. FD 47 CSL 2017, Bengaluru dated: 27/10/2018
In exercise of the powers conferred by Section 164 of the Karnataka Goods and Services Tax Act, 2017 (Karnataka Act 27 of 2017), on the recommendation of the GST Council, the Government of Karnataka hereby makes the following rules further to amend the Karnataka Goods and Services Tax Rules, 2017, namely: –
RULES
1. Title and commencement.-(1) These rules may be called the Karnataka Goods and Services Tax (Eleventh Amendment) Rules, 2018.
(2) They shall c
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dated 23rd October 2017, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R 1321 (E), dated 23rd October, 2017; or
(b) availed the benefit of Government of India Notification No. 78/2017-Customs, dated 13th October 2017, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R 1272 (E), dated 13th October 2017 or Government of India Notification No. 79/2017 -Customs, dated 13th October 2017, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R 1299 (E), dated 13th October, 2017, the refund of input tax credit, availed in respect of inputs received under the said Notifications for export o
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of Karnataka Notification (40/2017) No. FD 48 CSL 2017 dated 23rd October 2017, published in the Karnataka Gazette, Extraordinary, Part-IVA, No. 974, dated 23rd October 2017 or Government of India Notification No. 41/2017-Integrated Tax (Rate), dated 23rd October 2017, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R 1321 (E), dated 23rd October 2017 has been availed; or
(b) availed the benefit under Government of India Notification No. 78/2017-Customs, dated 13th October 2017, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R 1272 (E), dated 13th October 2017 or Government of India Notification No. 79/2017-Customs, dated 13th Oct
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The Karnataka Goods and Services Tax (Tenth Amendment) Rules, 2018.
(04-T/2017) No. FD 47 CSL 2017 Dated:- 27-10-2018 Karnataka SGST
GST – States
Karnataka SGST
Karnataka SGST
FINANCE SECRETARIAT
NOTIFICATION(4-T/2017)
No. FD 47 CSL 2017, Bengaluru, dated: 27/10/2018
In exercise of the powers conferred by Section 164 of the Karnataka Goods and Services Tax Act, 2017 (Karnataka Act 27 of 2017), on the recommendation of Goods and Services Tax Council, the Government of Karnataka hereby makes the following rules further to amend the Karnataka Goods and Services Tax Rules, 2017, namely: –
RULES
1. Title and commencement.-(1) These rules may be called the Karnataka Goods and Services Tax (Tenth Amendment) Rules, 2018.
(2) Th
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Karnataka Gazette, Extraordinary, Part-IVA, No. 974, dated 23rd October 2017 or Government of India Notification No. 41/2017-Integrated Tax (Rate), dated 23rd October 2017, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R 1321 (E), dated 23rd October 2017 or Government of India Notification No. 78/2017-Customs, dated 13th October 2017, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i),vide number G.S.R 1272 (E), dated 13th October 2017 or Government of India Notification No. 79/2017-Customs, dated 13th October 2017, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R 1299 (E)dated 13th October 201
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IGST Exports Refunds – extension in SB005 alternate mechanism and revised processing in certain cases including disbursal of compensation Cess
PUBLIC NOTICE NO. 35/2018 Dated:- 27-10-2018 Trade Notice
Customs
GOVENMENT OF INDIA
MINISTRY OF FINANCE, DEPARTMENT OF REVENUE
OFFICE OF THE PRINCIPAL COMMISSIONER OF CUSTOMS (AIR CARGO), CHENNAI-VII COMMISSIONERATE,
NEW CUSTOM HOUSE, MEENAMBAKKAM, CHENNAI-600 027.
F. No.: S.Misc.230/2018-EXP.(Air)
Dated: 27.10.2018
PUBLIC NOTICE NO. 35/2018
Sub: Reg.
Attention of Exporters / Customs Brokers / Steamer Agents / other Stakeholders and the Trading Public is invited to the Board Circular No 40/2018-Customs dated 24.10.2018, wherein error of the refund scroll has been Generated for a much lesser IGST amount than what has actually been paid against the exported goods is discussed. Board has issued Circular Nos. 05/2018-Customs dated 23.02.2018, 08/2018-Customs dated 23.03.2018, 15/2018-Customs dated 06.06.2018 and 22/2018-Customs d
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ing bill match with each other since the same transaction is being reported under GST laws and Customs Act.
2. It may be noted that SBS which have not been scrolled due to the IGST paid amount erroneously declared as 'NA' are already being handled through officer interface as per Board's Circular 08/2018-Customs dated 23.03.2018. However, no such provision was hitherto available in respect of those SBS which were successfully scrolled, albeit with a lesser than eligible amount.
3. Board has been receiving representation where the refund scroll has been generated for a much lesser IGST amount than what has actually been paid against the exported goods. Broadly, this has happened due to:
a. Error made by the exporter/CHA in declaring the IGST paid amount in SB or,
b. Cases where Compensation Cess paid -amount was not entered by the exporter in the SB along with IGST paid amount or the same details were not transmitted by GSTN, and the scroll consequently got generated o
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differential amount, the exporter is required to submit a duly filed and signed Revised Refund Request (RRR) annexed to this Public Notice to the Assistant Commissioner(IGST Refunds), Air Cargo Complex, New Custom House, Chennai-VII Commissionerate. A scanned copy of the RRR may also be mailed to dedicated email address of Customs locations from where exports took place. The concerned AC/DC will then proceed to sanction the revised amount after due verification through the option provided in ICES. Once the revised amount is approved by the designated AC/DC in the system, a fresh scroll will be available for generation for the differential amount only.
6. It may be noted that only those SBS which have already been scrolled shall be available in this facility. Further, this facility can be used only once for each eligible SB to sanction the revised IGST amount. Thus, utmost care may be taken by the exporter whiloe submitting the RRR as wel as the sanctioning officer while sanctioning th
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Refund Claims Under GST: Process After Deficiency Memo and Re-crediting for EPCG Scheme Exporters Explained.
Circulars
GST
Clarification on certain issues related to refund – Status of refu
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CBIC Releases Guidelines for Processing GST Registration Cancellation Applications in FORM GST REG-16 to Ensure Consistency.
Circulars
GST
Processing of Applications for Cancellation of Regis
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Clarifications on GST Rules for Casual Taxable Persons and Correcting Excess Input Tax Credit Distribution Procedures.
Circulars
GST
Clarifications of issues under GST related to casual taxab
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Guidance on Issuing Credit and Debit Notes for Returns under GST: Focus on Time-Expired Drugs and Medicines.
Circulars
GST
Return of goods under GST – When to issue Credit note / Debit Note a
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Final CGST Return Deadline: Submit FORM GSTR-10 by December 31 if registration was canceled by September 30, 2018.
Notifications
GST
Central Government notifies the persons whose registration
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Deadline Extended for FORM GST ITC-04 Declarations: Submit by December 31, 2018 for July 2017 to September 2018 Period.
Notifications
GST
Time limit for making the declaration in FORM GST ITC
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ITC 04 FILING
Query (Issue) Started By: – SUNDAR R Dated:- 26-10-2018 Last Reply Date:- 27-10-2018 Goods and Services Tax – GST
Got 2 Replies
GST
WE ARE SENDING THE RAW MATERIALS TO JOB WORKER FOR THE PROCESSING FINISHING GOODS, AFTER PROCESSING WE ARE RECEIVED THE FINISHED GOODS. IN ITC 04 TABLE 04 WE ARE UPDATED RAW MATERIALS SENT TO JOBWORKER. HOW CAN WE UPDATE RAW MATERIALS RECEIVED FROM JOBWORKER IN TABLE 5
Reply By SHIVKUMAR SHARMA:
The Reply:
If goods not received in the S
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GST Applies to Liquidated Damages as Service Supply, Regardless of Contract Terms; Taxation Based on Transaction Nature.
Case-Laws
GST
Levy of GST – Liquidated damages – Supply or not – point of taxation – tolerate an act – though in the agreement they may be giving this consideration, other names such as 'damages' or 'compensation' as thought proper by them, but these different nomenclatures in their Agreement would in no way change the actual nature of monetary “consideration” which w
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Restaurant Cleared of Profiteering Allegations After Adjusting Prices Due to GST and ITC Changes; Case Dismissed.
Case-Laws
GST
Profiteering – restaurant service – failure to pass the benefit of reduced rate of GST – Respondent had increased the average base price by 12.14% to neutralize the denial of ITC of 11.80% and such increase is commensurate with the increase in the cost of the product on account of denial of ITC. – Application dismissed.
TMI Updates – Highlights, quick notes
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Seeks to provide taxpayers whose registration has been cancelled on or before the 30th September, 2018 time to furnish final return in FORM GSTR-10 till 31st December, 2018
58/2018 Dated:- 26-10-2018 Central GST (CGST)
GST
CGST
CGST
MINISTRY OF FINANCE
(Department of Revenue)
(CENTRAL BOARD OF INDIRECT TAXES AND CUSTOMS)
NOTIFICATION No. 58/2018 – Central Tax
New Delhi, the 26th October, 2018
G.S.R.1070(E).-In exercise of the powers conferred by section 148 of the Central Goo
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Time limit for making the declaration in FORM GST ITC-04 for the period period from July, 2017 to September, 2018 extended till the 31st day of December, 2018.
59/2018 Dated:- 26-10-2018 Central GST (CGST)
GST
CGST
CGST
Superseded vide Notification No. 78/2018-Central Tax dated 31-12-2018
MINISTRY OF FINANCE
(Department of Revenue)
(CENTRAL BOARD OF INDIRECT TAXES AND CUSTOMS)
NOTIFICATION No. 59/2018 – Central Tax
New Delhi, the 26th October, 2018
G.S.R. 1071(E).- In pursuance of section 168 of the Central Goods and Services Tax Act, 2017 (12 of 2017) and sub-rule (3) of rule 45 of the Central Goods and Services Tax Rules, 2017 (hereinafter referred to as the said rules), and in supercession of the notification of the
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Processing of Applications for Cancellation of Registration submitted in FORM GST REG-16 – Reg.
69/43/2018 Dated:- 26-10-2018 CGST – Circulars / Ordes
GST
Circular No. 69/43/2018-GST
F. No. CBEC/20/16/04/2017-GST
Government of India
Ministry of Finance
Department of Revenue
Central Board of Indirect Taxes and Customs
GST Policy Wing
New Delhi, Dated the 26th October, 2018
To,
The Principal Chief Commissioners/Chief Commissioners/Principal Commissioners/ Commissioners of Central Tax (All)
The Principal Directors General/Directors General (All)
Madam/Sir,
Subject: Processing of Applications for Cancellation of Registration submitted in FORM GST REG-16 – Reg.
The Board is in receipt of representations seeking clarifications on various issues in relation to processing of the applications for cancellation of registration filed by taxpayers in FORM GST REG-16. In order to clarify these issues and to ensure uniformity in the implementation of the provisions of law across
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r cancellation of registration shall submit the application in FORM GST REG-16 on the common portal within a period of 30 days of the „occurrence of the event warranting the cancellation‟. It might be difficult in some cases to exactly identify or pinpoint the day on which such an event occurs. For instance, a business may be transferred/disposed over a period of time in a piece meal fashion. In such cases, the 30-day deadline may be liberally interpreted and the taxpayers‟ application for cancellation of registration may not be rejected because of the possible violation of the deadline.
4. While initiating the application for cancellation of registration in FORM GST REG-16, the Common portal captures the following information which has to be mandatorily filled in by the applicant:
a) Address for future correspondence with mobile number and email address;
b) Reason for cancellation;
c) Date from which cancellation is sought;
d) Details of the value and the in
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s incomplete, i.e. where all the relevant particulars, as detailed in para 4 above, have not been entered;
b) In case of transfer, merger or amalgamation of business, the new entity in which the applicant proposes to amalgamate or merge has not got registered with the tax authority before submission of the application for cancellation.
In all cases other than those listed at (a) and (b) above, the application for cancellation of registration should be immediately accepted by the proper officer and the order for cancellation should be issued in FORM GST REG-19 with the effective date of cancellation being the same as the date from which the applicant has sought cancellation in FORM GST REG-16. In any case the effective date cannot be a date earlier to the date of application for the same.
6. In situations referred to in (a) or (b) in para 5 above, the proper officer shall inform the applicant in writing about the nature of the discrepancy and give a time period of seven working days
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ed person (other than an Input Service Distributor or a non-resident taxable person or a person paying tax under the provisions of section 10 or section 51 or section 52) whose registration has been cancelled, to file a final return in FORM GSTR-10, within three months of the effective date of cancellation or the date of order of cancellation, whichever is later. The purpose of the final return is to ensure that the taxpayer discharges any liability that he/she may have incurred under sub-section (5) of the section 29 of the CGST Act. It may be noted that the last date for furnishing of FORM GSTR-10 by those taxpayers whose registration has been cancelled on or before 30.09.2018 has been extended till 31.12.2018 vide notification No. 58/2018 – Central Tax dated the 26th October, 2018.
8. Further, sub-section (5) of section 29 of the CGST Act, read with rule 20 of the CGST Rules states that the taxpayer seeking cancellation of registration shall have to pay, by way of debiting either t
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said date except for discharging liabilities under GST Act upto the date of filing of final return in FORM GSTR-10. Therefore, the requirement to reverse the balance in the electronic credit ledger is automatically met. In case it is later determined that the output tax liability of the taxpayer, as determined under sub-section (5) of section 29 of the CGST Act, was greater than the amount of input tax credit available, then the difference shall be paid by him/her in cash. It is reiterated that, as stated in sub-section (3) of section 29 of the CGST Act, the cancellation of registration does not, in any way, affect the liability of the taxpayer to pay any dues under the GST law, irrespective of whether such dues have been determined before or after the date of cancellation.
9. In case the final return in FORM GSTR-10 is not filed within the stipulated date, then notice in FORM GSTR-3A has to be issued to the taxpayer. If the taxpayer still fails to file the final return within 15 day
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any taxable supplies during the intervening period (i.e. from the date of registration to the date of application for cancellation of registration) and has furnished an undertaking to this effect.
11.1[It is pertinent to mention here that section 29 of the CGST Act has been amended by the CGST (Amendment) Act, 2018 to provide for “Suspension” of registration. The intent of the said amendment is to ensure that a taxpayer is freed from the routine compliances, including filing returns, under GST Act during the pendency of the proceedings related to cancellation. Accordingly, the field formations may not issue notices for non- filing of return for taxpayers who have already filed an application for cancellation of registration under section 29 of the CGST Act. Further, the requirement of filing a final return, as under section 45 of the CGST Act, remains unchanged.]
12. It may be noted that the information in table in FORM GST REG-19 shall be taken from the liability ledger and the dif
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Clarification on certain issues related to refund – Reg.
70/44/2018 Dated:- 26-10-2018 CGST – Circulars / Ordes
GST
Superseded Vide Circular No. 125/44/2019-GST dated 18-11-2019
Circular No. 70/44/2018 -GST
F. No. CBEC/20/16/04/2017-GST
Government of India
Ministry of Finance
Department of Revenue
Central Board of Indirect Taxes and Customs
GST Policy Wing
New Delhi, Dated the 26th October, 2018
To,
The Principal Chief Commissioners/ Chief Commissioners / Principal Commissioners / Commissioners of Central Tax (All)/
The Principal Directors General / Directors General (All)
The Principal CCA, CBIC
Madam/Sir,
Subject: Clarification on certain issues related to refund – Reg.
The Board is in receipt of representations seeking clarification on certain issues relating to refund. In order to clarify these issues and to ensure uniformity in the implementation of the provisions of law across the field formations, the Board, in exercise of its powers conferred by sectio
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rvices Tax Rules, 2017 (hereinafter referred to as the “CGST Rules”) is required to be re-credited to the electronic credit ledger of the applicant by using FORM GST RFD-01B and the taxpayer is expected to file a fresh application for refund.
2.2 The issue has been re-examined and it has been observed that presently the common portal does not allow a taxpayer to file a fresh application for refund once a deficiency memo has been issued against an earlier refund application for the same period. Therefore, it is clarified that till the time such facility is developed, taxpayers would be required to submit the rectified refund application under the earlier Application Reference Number (ARN) only. Thus, it is reiterated that when a deficiency memo in FORM GST RFD-03 is issued to taxpayers, re-credit in the electronic credit ledger (using FORM GST RFD-01B) is not required to be carried out and the rectified refund application would be accepted by the jurisdictional tax authorities with the
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, had accorded approval to the proposal of suitably amending the said sub-rule along with sub-rule (4B) of rule 89 of the CGST Rules prospectively in order to enable such exporters to avail the said facility notification No. 54/2018 – Central Tax dated the 9th October, 2018 has been issued to carry out the changes recommended by the GST Council. Alongside the amendment carried out in the said sub-rule through the notification No. 39/2018- Central Tax dated 4th September, 2018 has been rescinded vide notification No. 53/2018 – Central Tax dated the 9th October, 2018.
3.2 For removal of doubts, it is clarified that the net effect of these changes would be that any exporter who himself/herself imported any inputs/capital goods in terms of notification Nos. 78/2017-Customs and 79/2017-Customs both dated 13th October, 2017 shall be eligible to claim refund of the IGST paid on exports till the date of the issuance of the notification No. 54/2018 – Central Tax dated the 9th October, 2018 ref
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Clarifications of issues under GST related to casual taxable person and recovery of excess Input Tax Credit distributed by an Input Service distributor – Reg.
71/45/2018 Dated:- 26-10-2018 CGST – Circulars / Ordes
GST
Circular No. 71/45/2018-GST
F. No. 349/94/2017-GST
Government of India
Ministry of Finance
Department of Revenue
Central Board of Indirect Taxes and Customs
GST Policy Wing
New Delhi, Dated the 26th October, 2018
To,
The Principal Chief Commissioners/ Chief Commissioners/Principal Commissioners/ Commissioners of Central Tax (All)/
The Principal Directors General/ Directors General (All)
Madam/Sir,
Subject: Clarifications of issues under GST related to casual taxable person and recovery of excess Input Ta
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ty” only and not the gross tax liability.
2. It is accordingly clarified that the amount of advance tax which a casual taxable person is required to deposit while obtaining registration should be calculated after considering the due eligible ITC which might be available to such taxable person.
2.
As per section 27 of the Central Goods and Services Tax Act, 2017 (hereinafter referred to as the said Act), period of operation by causal taxable person is ninety days with provision for extension of same by the proper officer for a further period not exceeding ninety days. Various representations have been received for further extension of the said period beyond the period of 180 days, as mandated in law.
1. It is clarified that in case of lo
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Input Service Distributor (ISD) in contravention of the provisions contained in section 20 of the CGST Act.
1. According to Section 21 of the CGST Act where the ISD distributes the credit in contravention of the provisions contained in section 20 of the CGST Act resulting in excess distribution of credit to one or more recipients of credit, the excess credit so distributed shall be recovered from such recipients along with interest and penalty if any.
2. The recipient unit(s) who have received excess credit from ISD may deposit the said excess amount voluntarily along with interest if any by using FORM GST DRC-03.
3. If the said recipient unit(s) does not come forward voluntarily, necessary proceedings may be initiated against the said u
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Circular to clarify the procedure in respect of return of time expired drugs or medicines – Reg.
72/46/2018 Dated:- 26-10-2018 CGST – Circulars / Ordes
GST
Circular No. 72/46/2018-GST
F. No. CBEC/20/16/04/2017-GST
Government of India
Ministry of Finance
Department of Revenue
Central Board of Indirect Taxes and Customs
GST Policy Wing
New Delhi, Dated the 26th October, 2018
To,
The Principal Chief Commissioners/Chief Commissioners/Principal Commissioners/ Commissioners of Central Tax (All)
The Principal Directors General/Directors General (All)
Madam/Sir,
Subject: Circular to clarify the procedure in respect of return of time expired drugs or medicines – Reg.
Various representations have been received seeking clarification on the procedure to be followed in respect of return of time expired drugs or medicines under the GST laws. The issues raised in the said representations have been examined and to ensure uniformity in the implementation of the law across the fie
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be treated as fresh supply:
a) In case the person returning the time expired goods is a registered person (other than a composition taxpayer), he may, at his option, return the said goods by treating it is as a fresh supply and thereby issuing an invoice for the same (hereinafter referred to as the, “return supply”). The value of the said goods as shown in the invoice on the basis of which the goods were supplied earlier may be taken as the value of such return supply. The wholesaler or manufacturer, as the case may be, who is the recipient of such return supply, shall be eligible to avail Input Tax Credit (hereinafter referred to as “ITC”) of the tax levied on the said return supply subject to the fulfilment of the conditions specified in Section 16 of the CGST Act.
b) In case the person returning the time expired goods is a composition taxpayer, he may return the said goods by issuing a bill of supply and pay tax at the rate applicable to a composition taxpayer. In this scenario t
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the basis of fresh invoice issued by wholesaler is ₹ 15/-. So, when the time expired goods are destroyed by the manufacturer he would be required to reverse ITC of ₹ 15/- and not of ₹ 10/-.
(B) Return of time expired goods by issuing Credit Note:
a) As per sub-section (1) of Section 34 of the CGST Act the supplier can issue a credit note where the goods are returned back by the recipient. Thus, the manufacturer or the wholesaler who has supplied the goods to the wholesaler or retailer, as the case may be, has the option to issue a credit note in relation to the time expired goods returned by the wholesaler or retailer, as the case may be. In such a scenario, the retailer or wholesaler may return the time expired goods by issuing a delivery challan. It may be noted that there is no time limit for the issuance of a credit note in the law except with regard to the adjustment of the tax liability in case of the credit notes issued prior to the month of September foll
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ed the credit note) as tax liability cannot be adjusted in this case.
d) Further, where the time expired goods, which have been returned by the retailer/wholesaler, are destroyed by the manufacturer, he/she is required to reverse the ITC attributable to the manufacture of such goods, in terms of the provisions of clause (h) of sub-section (5) of section 17 of the CGST Act. This has been illustrated in table below:
Date of Supply of goods from manufacturer/ wholesaler to wholesaler/ retailer
Date of return of time expired goods from retailer / wholesaler to wholesaler / manufacturer
Treatment in terms of tax liability & credit note
Case 1
1st July, 2017
20th September, 2018
Credit note will be issued by the supplier (manufacturer / wholesaler) and the same to be uploaded by him on the common portal. Subsequently, tax liability can be adjusted by such supplier provided the recipient (wholesaler / retailer) has either not availed the ITC or if availed has reversed the ITC.
Ca
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Seeks to provide taxpayers whose registration has been cancelled on or before the 30th September, 2018 time to furnish final return in FORM GSTR-10 till 31st December, 2018
S.O. 266 Dated:- 26-10-2018 Bihar SGST
GST – States
Bihar SGST
Bihar SGST
Commercial Tax Department
Notification
The 26th October 2018
S.O. 266, Dated 26th October 2018- In exercise of the powers conferred by section 148 of the Bihar Goods and Services Tax Act, 2017 (12 of 2017) (hereafter in this notificat
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M/s. KHUSHIYA INDUSTRIES PVT. LTD. Versus STATE OF GUJARAT
GST
2018 (10) TMI 1454 – GUJARAT HIGH COURT – [2019] 61 G S.T.R. 141 (Guj)
GUJARAT HIGH COURT – HC
Dated:- 26-10-2018
R/SPECIAL CIVIL APPLICATION NO. 14566 of 2018 With R/SPECIAL CIVIL APPLICATION NO. 14567 of 2018
GST
MR AKIL KURESHI AND MR UMESH TRIVEDI, JJ.
For The Petitioner : MR SIRAJ R GORI (2298) AND MR VARIS V ISANI (3858)
For The Respondent : MR PRANAV TRIVEDI, AGP
ORAL ORDER
(PER : HONOURABLE MR.JUSTICE AKIL KURESHI)
1. These petitions are filed for challenging provisional orders of attachment passed by the respondent authorities attaching the petitioner's factory premises, stock and bank accounts. The facts behind such action of the respondents are that the petitioner-a Private Limited Company is engaged in manufacture and trading in caster oil and related products. The premises of the petitioner and other entities in the same business were raided. During the period between 27.06.2018
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me reasonable conditions, attachment should be suspended.
3. On the other hand, learned AGP explained the modes operandi allegedly employed by the petitioner for defrauding the Government revenue. He submitted that there is reliable material on record to establish such allegation. Pending assessment, the competent authority passed the order of provisional attachment to protect the interest of the Revenue.
4. In facts of the case, we have to balance the interest of both sides. At the prima facie stage, the department contends strongly that the petitioner has indulged into revenue defalcation. Possible tax and penalty liabilities are substantial. At the same time, it is not disputed that the petitioner is also involved in legitimate business activities. By freezing the petitioner's bank accounts and attaching the properties, the petitioner is temporarily rendered penalized. The petitioner cannot operate the business, cannot move the stock and cannot make payments. On reasonable ter
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ollection.
6. Under the circumstances, we would permit the petitioner to carry on the legitimate business by suspending provisional attachments subject to fulfillment of following conditions:
(i) The petitioner creates an undertaking to maintain a stock of the goods of a minimum of Rs. 5 crores. Such undertaking shall be filed before the department as well as before this Court by 15.11.2018;
(ii) The petitioner give unconditional bank guarantee to the department to the tune of Rs. 5 crores. For this limited purpose of enabling the petitioner to create stock and give bank guarantee, it would be open for the petitioner to receive payments from its dealers. The director of the petitioner will file undertaking before this Court latest by 30.10.2018 that such payments will not be utilized for any purpose other than creating the stock as directed above and for raising bank guarantee.
7. Upon fulfilling such conditions, the attachment orders would automatically stand suspended along wit
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