admin_gst – Page 357 – Goods and Services Tax

CLARIFICATION REGARDING APPLICABILITY OF GST ON THE PETROLEUM GASES

CLARIFICATION REGARDING APPLICABILITY OF GST ON THE PETROLEUM GASES
Circular No. 1819052/829 Dated:- 23-10-2018 Uttar Pradesh SGST
GST – States
Enclosed Circular No.53/27/2018-GST
=============
Document 1
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he petroleum gases retained for
the manufacture of petrochemical and chemical products – regarding.
References have been received regarding the applicability of GST on the petroleum
gases retained for the manufacture of petrochemical and chemical products during the course
of continuous supply, such as Methyl Ethyl Ketone (MEK) feedstock, petroleum gases etc.
2.
In this context, it may be recalled that clarifications on similar issues for specific
products have already been issued vide circular Nos. 12/12/2017-GST dated 26th October, 2017
and 29/3/2018-GST dated 25th January, 2018. These circulars apply mutatis mutandis to other
cases involving same manner of supply as mentioned in these circulars. However, references
have again been received from some of the manufacturers of other petrochemical and chemical
products for issue of clarification on applicability of GST on petroleum gases, which are
supplied by oil refineries to them on a continuous basis through dedicated pip

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he manufacture of petrochemical and chemical products. Though, the refinery would be
liable to pay GST on such returned quantity of petroleum gases, when the same is supplied by
it to any other person. It is reiterated that this clarification would be applicable mutatis mutandis
on other cases involving supply of goods, where feed stock is retained by the recipient and
remaining residual material is returned back to the supplier. The net billing is done on the
amount retained by the recipient.
5.
This clarification is issued in the context of the Goods and Service Tax (GST) law only
and past issues, if any, will be dealt in accordance with the law prevailing at the material time.
Yours faithfully,
Dr. Ajay K. Chikara
Technical Officer (TRU)
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CLARIFICATION REGARDING APPLICABILITY OF GST ON VARIOUS GOODS AND SERVICES

CLARIFICATION REGARDING APPLICABILITY OF GST ON VARIOUS GOODS AND SERVICES
Circular No. 1819054/828 Dated:- 23-10-2018 Uttar Pradesh SGST
GST – States
Enclosed Circular No.52/26/2018-GST
=============
Document 1
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tified Toned Milk: Representations have been received
seeking clarification regarding applicability of GST on Fortified Toned Milk.
3.2 Milk is classified under heading 0401 and as per S.No. 25 of notification No. 2/2017-
Central Tax (Rate) dated 28.06.2017, fresh milk and pasteurised milk, including separated
milk, milk and cream, not concentrated nor containing added sugar or other sweetening matter,
excluding Ultra High Temperature (UHT) milk falling under tariff head 0401 attracts NIL rate
of GST. Further, as per HSN Explanatory Notes, milk enriched with vitamins and minerals is
classifiable under HSN code 0401. Thus, it is clarified that toned milk fortified (with vitamins
'A' and 'D') attracts NIL rate of GST under HSN Code 0401.
4.1
Applicable GST rate on refined beet and cane sugar: Doubts have been raised
regarding GST rate applicable on refined beet and cane sugar. Vide S. No. 91 of schedule I of
notification No. 1/2017-Central Tax (Rate) dated 28.06.2017, 5% GST

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including refined beet and cane
sugar, will fall under heading 1701 and attract 5% GST rate.
5.1
Applicable GST rate on treated (modified) tamarind kernel powder and plain
(unmodified) tamarind kernel powder : Representation have been received seeking
clarification regarding GST rate applicable on treated (modified) tamarind kernel powder and
plain (unmodified) tamarind kernel powder.
5.2
There are two grades of Tamarind Kernel Powder (TKP):- Plain (unmodified) form
(hot, water soluble) and Chemically treated (modified) form (cold, water soluble).
5.3
As per S. No. 76 A of schedule I of notification No. 1/2017-Central Tax (Rate) dated
28.06.2017, 5% GST rate was prescribed on Tamarind Kernel powder falling under chapter 13.
However, certain doubts have been expressed regarding GST rate on Tamarind kernel powder,
as the said notification does not specifically mention the word “modified”.
5.4 As both plain (unmodified) tamarind kernel powder and treated (modified) tamarin

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rate on Human Blood Plasma: References have been received about the varying
practices being followed in different parts of the country regarding the GST rates on “human
blood plasma”.
7.2
Plasma is the clear, straw coloured liquid portion of blood that remains after red blood
cells, white blood cells, platelets and other cellular components have been removed. As per the
explanatory notes to the Harmonized System of Nomenclature (HSN), plasma would fall under
the description antisera and other blood fractions, whether or not modified or obtained by
means of biotechnological processes and would fall under HS code 3002.
7.3
Normal human plasma is specifically mentioned at S. No. 186 of List I under S. No.
180 of Schedule I of the notification No. 1/2017-Central Tax (Rate) dated 28th June, 2017, and
attracts 5% GST. Other items falling under HS Code 3002 (including plasma products) would
attract 12% GST under S. No. 61 of Schedule II of the said notification, not specifically

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alized water and various chemicals and fragrances, which impart the essential character
to the product. The base raw materials are moisturising and cleansing agents, preservatives,
aqua base, cooling agents, perfumes etc. The textile material is present as a carrying medium
of these cleaning/wiping components.
8.3
According to the General Rules for Interpretation [GRI- 3(b)] of the First Schedule to
the Customs Tariff Act (CTA), 1975, “Mixtures, 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 3 (a), shall be classified as if they consisted of the material
or component which gives them their essential character, insofar as this criterion is
applicable.” Since primary function of the article should be taken into consideration while
deciding the classification, it is clear that the essential character of the wipes in the instant case
is imparted by the com

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HSN, the heading 3307 includes wadding,
felt and nonwovens impregnated, coated or covered with perfume or cosmetics. Similarly, as
per explanatory notes to the HSN, the heading 3401 includes wipes made of paper, wadding,
felt and nonwovens, impregnated, coated or covered with soap or detergent, whether or not
perfumed or put up for retail sale.
8.6
Thus, the wipes of various kinds (as stated above) are classifiable under heading 3307
or 3401 depending upon their constituents as discussed above. Therefore, if the baby wipes are
impregnated with perfumes or cosmetics, then the same would fall under HS code 3307 and
would attract 18% GST rate. Similarly, if they are coated with soap or detergent, then it would
fall under HS code 3401 and would attract 18% GST.
9.1
Classification and applicable GST rate on real zari Kasab (thread): Certain doubts
have been raised regarding the classification and applicable GST rate on Kasab thread (a
metallised yarn) as yarn falling under he

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g under this heading attract 12% GST.
Accordingly, kasab (yarn) would attract 12% GST along with other metallised yarn, whether
or not gimped, being textile yarn, combined with metal in the form of thread, strip or powder
or covered with metal including imitation zari thread (S. No. 137 of the Schedule-II-12%).
Therefore, it is clarified that imitation zari thread or yarn known as “Kasab” or by any other
name in trade parlance, would attract a uniform GST rate of 12% under tariff heading 5605.
10.1 Applicability of GST on marine engine: Reference has been received seeking
clarification regarding GST rates on Marine Engine. The fishing vessels are classifiable under
heading 8902, and attract GST @ 5%, as per S. No. 247 of Schedule I of the notification No.
01/2017-Central Tax (rate) dated 28.06.2017. Further, parts of goods of heading 8902, falling
under any chapter also attracts GST rate of 5%, vide S. No. 252 of Schedule I of the said
notification. The Marine engine for fis

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ether a quilt filled with cotton with cover of cotton, or filled with cotton but
cover made of some other material, or filled with material other than cotton.
11.3
The matter has been examined. The essential character of the cotton quilt is imparted
by the filling material. Therefore, a quilt filled with cotton constitutes a cotton quilt,
irrespective of the material of the cover of the quilt. The GST rate would accordingly apply.
12.1 Applicable GST rate for bus body building activity: Representations have been
received seeking clarifications on GST rates on the activity of bus body building. The doubts
have arisen on account of the fact that while GST applicable on job work services is 18%, the
supply of motor vehicles attracts GST @ 28%.
12.2 Buses [motor vehicles for the transport of ten or more persons, including the driver] fall
under headings 8702 and attract 28% GST. Further, chassis fitted with engines [8705] and
whole bodies (including cabs) for buses [8707] also

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d accordingly.
13.1
Applicable GST rate on Disc Brake Pad: Representations have been received seeking
clarification on disc brake pad for automobiles. It is stated that divergent practices of
classifying these products, in Chapter 68 or heading 8708 are being followed. Chapter 68
attracts a GST rate of 18%, while heading 8708 attracts a GST rate of 28%.
13.2 Parts and accessories of motor vehicles of headings 8701 to 8705 are classified under
heading 8708 and attract 28% GST. Further, friction material and articles thereof (for example,
sheets, rolls, strips, segments, discs, washers, pads), not mounted, for brakes, for clutches or
the like, with a basis of asbestos, of other mineral substances or of cellulose, whether or not
combined with textiles or other mineral substances or of cellulose, whether or not combined
with textiles or other materials are classifiable under heading 6813 and attract 18% GST.
13.3 In the above context, it is mentioned that as per HSN Explanatory

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fficulty, if any, may be brought to the notice of the Board immediately. Hindi version
shall follow.
Yours faithfully
Dr. Ajay K. Chikara
Technical Officer (TRU)
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THE PUNJAB GOODS AND SERVICES TAX (AMENDMENT) ORDINANCE, 2018.

THE PUNJAB GOODS AND SERVICES TAX (AMENDMENT) ORDINANCE, 2018.
26-Leg./2018 Dated:- 23-10-2018 Punjab SGST
GST – States
Punjab SGST
Punjab SGST
GOVERNMENT OF PUNJAB
DEPARTMENT OF LEGAL AND LEGISLATIVE AFFAIRS, PUNJAB
NOTIFICATION
The 23rd October, 2018
No. 26-Leg./2018.-The following Ordinance of the Governor of Punjab, promulgated under clause (1) of article 213 of the Constitution of India on the 18th day of October, 2018, is hereby published for general information:-
THE PUNJAB GOODS AND SERVICES TAX (AMENDMENT) ORDINANCE, 2018
(Punjab Ordinance No. 2 of 2018)
AN
ORDINANCE
further to amend the Punjab Goods and Services Tax Act, 2017.
Promulgated by the Governor of Punjab in the Sixty-ninth Year of the Republic of India.
Whereas, the Legislative Assembly of the State of Punjab is not in session and the Governor is satisfied that circumstances exist which render it necessary for him to take immediate action;
Now, therefore, in exercise of the powers conferre

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ty, the Appellate Tribunal and the Authority referred to in sub-section (2) of section 171″ shall be substituted;
(ii) in clause (16), for the words “Central Board of Excise and Customs”, the words “Central Board of Indirect Taxes and Customs” shall be substituted;
(iii) in clause (17), for sub-clause (h), the following sub-clause shall be substituted, namely:-
“(h) activities of a race club including by way of totalisator or a license to book maker or activities of a licensed book maker in such club; and”;
(iv) clause (18) shall be omitted;
(v) in clause (35), for the word, brackets and letter “clause (c)”, the word, brackets and letter “clause (b)” shall be substituted;
(vi) in clause (69), in sub-clause (f), after the word and figures “article 371”, the words, figures and letter “and article 371J” shall be inserted; and
(vii) in clause (102), the following Explanation shall be inserted, namely:-
“Explanation.-For the removal of doubts, it is hereby clarified that the expre

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n sub-section (3), for the words, brackets and figures “sub-sections (1) and (2)”, the words, brackets, sign, figures and letter “sub-sections (1), (1A) and (2)” shall be substituted.
Amendment of section 9 of Punjab Act 5 of 2017.
4. In the principal Act, in section 9, for sub-section (4), the following sub-section shall be substituted, namely:-
“(4) The Government may, on the recommendations of the Council, by notification, specify a class of registered persons who shall, in respect of supply of specified categories of goods or services or both received from an unregistered supplier, pay the tax on reverse charge basis as the recipient of such supply of goods or services or both, and all the provisions of this Act shall apply to such recipient as if he is the person liable for paying the tax in relation to such supply of goods or services or both.”.
Amendment of section 10 of Punjab Act 5 of 2017.
5. In the principal Act, in section 10,-
(i) in sub-section (1),-
(a) for the si

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section (1), he is not engaged in the supply of services;”.
Amendment of section 12 of Punjab Act 5 of 2017.
6. In the principal Act, in section 12, in sub-section (2), in clause (a), the words, brackets and figure “sub-section (1) of” shall be omitted.
Amendment of section 13 of Punjab Act 5 of 2017.
7. In the principal Act, in section 13, in sub-section (2), the words, brackets and figure “sub-section (2) of” occurring at both the places, shall be omitted.
Amendment of section 16 of Punjab Act 5 of 2017.
8. In the principal Act, in section 16, in sub-section (2),-
(i) in clause (b), for the Explanation, the following Explanation shall be substituted, namely:-
“Explanation.-For the purposes of this clause, it shall be deemed that the registered person has received the goods or, as the case may be, services-
(i) where the goods are delivered by the supplier to a recipient or any other person on the direction of such registered person, whether acting as an agent or otherwise,

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

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entre; and
(iii) travel benefits extended to employees on vacation such as leave or home travel concession:
Provided further that the input tax credit in respect of such goods or services or both shall be available, where it is obligatory for an employer to provide to its employees under any law for the time being in force.”.
Amendment of section 20 of Punjab Act 5 of 2017.
10. In the principal Act, in section 20, in the Explanation, in clause (c), for the words and figures “under entry 84”, the words, figures and letter “under entries 84 and 92A” shall be substituted.
Amendment of section 22 of Punjab Act 5 of 2017.
11. In the principal Act, in section 22, –
(i) in sub-section (1), after the proviso, the following proviso shall be inserted, namely:-
“Provided further that where such person makes taxable supplies of goods or services or both from a special category State in respect of which the Central Government has enhanced the aggregate turnover referred to in the first pro

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omic Zone developer shall have to apply for a separate registration, as distinct from his place of business located outside the Special Economic Zone in the State."; and
(ii) in sub-section (2), for the proviso, the following proviso shall be substituted, namely:-
"Provided that a person having multiple places of business in the State may be granted a separate registration for each such place of business, subject to such conditions as may be prescribed.".
Amendment of section 29 of Punjab Act 5 of 2017.
14. In the principal Act, in section 29,-
(i) in the marginal heading, after the word “Cancellation”, the words “or suspension” shall be inserted;
(ii) in sub-section (1), after clause (c), the following proviso shall be inserted, namely:-
“Provided that during pendency of the proceedings relating to cancellation of registration filed by the registered person, the registration may be suspended for such period and in such manner as may be prescribed.”; and
(iii) in

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he principal Act, in section 35, in sub-section (5), the following proviso shall be inserted, namely:-
“Provided that nothing contained in this sub-section shall apply to any department of the Central Government or a State Government or a local authority, whose books of account are subject to audit by the Comptroller and Auditor-General of India or an auditor appointed for auditing the accounts of local authorities under any law for the time being in force.”.
Amendment of section 39 of Punjab Act 5 of 2017.
17. In the principal Act, in section 39,-
(i) in sub-section (1),-
(a) for the words “in such form and manner as may be prescribed”, the words “in such form, manner and within such time as may be prescribed” shall be substituted;
(b) the words “on or before the twentieth day of the month succeeding such calendar month or part thereof” shall be omitted;
(c) the following proviso shall be inserted, namely:-
“Provided that the Government may, on the recommendations of the C

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n” shall be substituted.
Insertion of section 43A in Punjab Act 5 of 2017.
18. In the principal Act, after section 43, the following section shall be inserted, namely:-
Procedure for furnishing return and availing input tax credit.
“43A. (1) Notwithstanding anything contained in sub-section (2) of section 16, section 37 or section 38, every registered person shall in the returns furnished under sub-section (1) of section 39 verify, validate, modify or delete the details of supplies furnished by the suppliers.
(2) Notwithstanding anything contained in section 41, section 42 or section 43, the procedure for availing of input tax credit by the recipient and verification thereof shall be such as may be prescribed.
(3) The procedure for furnishing the details of outward supplies by the supplier on the common portal, for the purposes of availing input tax credit by the recipient shall be such as may be prescribed.
(4) The procedure for availing input tax credit in respect of outward s

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overy of an amount of tax or input tax credit wrongly availed not exceeding one thousand rupees.
(8) The procedure, safeguards and threshold of the tax amount in relation to outward supplies, the details of which can be furnished under sub-section (3) by a registered person,-
(i) within six months of taking registration;
(ii) who has defaulted in payment of tax and where such default has continued for more than two months from the due date of payment of such defaulted amount,
shall be such as may be prescribed.”.
Amendment of section 48 of Punjab Act 5 of 2017.
19. In the principal Act, in section 48, in sub-section (2), after the word and figures “section 45”, the words “and to perform such other functions” shall be inserted.
Amendment of section 49 of Punjab Act 5 of 2017.
20. In the principal Act, in section 49,-
(i) in sub-section (2), for the word and figures “section 41”, the words, figures and letter “section 41 or section 43A” shall be substituted; and
(ii) in sub-s

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ted tax or State tax, as the case may be, only after the input tax credit available on account of integrated tax has first been utilised fully towards such payment.
Order of utilisation of the input tax credit.
49B. Notwithstanding anything contained in this Chapter and subject to the provisions of clause (e) and clause (f) of subsection (5) of section 49, the Government may, on the recommendations of the Council, prescribe the order and manner of utilisation of the input tax credit on account of integrated tax, central tax, State tax or Union territory tax, as the case may be, towards payment of any such tax.”.
Amendment of section 52 of Punjab Act 5 of 2017.
22. In the principal Act, in section 52, in sub-section (9), for the word and figures “section 37”, the words and figures “section 37 or section 39” shall be substituted.
Amendment of section 54 of Punjab Act 5 of 2017.
23. In the principal Act, in section 54,-
(i) in sub-section (8), in clause (a), for the words “zero-rat

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n 25.”.
Amendment of section 107 of Punjab Act 5 of 2017.
25. In the principal Act, in section 107, in sub-section (6), in clause (b), after the words and sign “arising from the said order,”, the words and sign “subject to a maximum of twenty-five crore rupees,” shall be inserted.
Amendment of section 112 of Punjab Act 5 of 2017.
26. In the principal Act, in section 112, in sub-section (8), in clause (b), after the words and sign “arising from the said order,” the words and sign “subject to a maximum of fifty crore rupees,” shall be inserted.
Amendment of section 129 of Punjab Act 5 of 2017.
27. In the principal Act, in section 129, in sub-section (6), for the words “seven days” occurring at both the places, the words “fourteen days” shall be substituted.
Amendment of section 143 of Punjab Act 5 of 2017.
28. In the principal Act, in section 143, in sub-section (1), in clause (b), after the proviso, the following proviso shall be inserted, namely:-
“Provided further that the pe

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V.V. MOHAMMED RAFI Versus STATE OF KERALA REPRESENTED BY THE SECRETARY (TAXES), GOVERNMENT SECRETARIAT, THIRUVANANTHAPURAM, COMMERCIAL TAX OFFICER STATE GOODS SERVICE TAX KOOTHUPARAMBA, KANNUR, THE ASST. STATE TAX OFFICER SQUARD NO. IV, STATE GO

V.V. MOHAMMED RAFI Versus STATE OF KERALA REPRESENTED BY THE SECRETARY (TAXES), GOVERNMENT SECRETARIAT, THIRUVANANTHAPURAM, COMMERCIAL TAX OFFICER STATE GOODS SERVICE TAX KOOTHUPARAMBA, KANNUR, THE ASST. STATE TAX OFFICER SQUARD NO. IV, STATE GOODS SERVICE TAX DEPARTMENT, KASARGODU AND THE INSPECTING ASST. COMMISIONER (INT) STATE GOOD SERVICE TAX DEPARTMENT, KASARAGODU
GST
2018 (11) TMI 1261 – KERALA HIGH COURT – TMI
KERALA HIGH COURT – HC
Dated:- 23-10-2018
WP (C). No. 34278 of 2018
GST
MR DAMA SESHADRI NAIDU, J.
For The Petitioner : ADVS. SRI. C. A. SADASIVAN SMT. P. S. SETHULEKSHMY SRI. C. A. SADASIVAN SRI. C. V. SASI SRI. JOY P. JOSE SRI. K. JAYAMOHANAN PILLAI AND SRI. K. N. KRISHNAN NAMBOOTHIRI
For The Respond

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writ, order or direction quashing Ext. P5 penalty notice which has violated provision Sec. 129(1)(b) of the SGST Act 2017.
(iii) Issue a writ of mandamus or any other appropriate writ direction or order in the nature of writ directing the 3rd respondent to release the detained goods and vehicle, without collecting any tax or penalty since the notices issued are in violation of the provisions of the relevant Acts to the petitioner. ”
3. The learned Division Bench of this Court in Renji Lal Damodaran Vs. State Tax Officer Judgment dated 06. 08. 2018 in W. A. No. 1640 of 2018 has dealt with an identical issue.
4. Applying the ratio of that judgment, I direct the respondent authorities to release the petitioner's goods and vehicle on

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M/s. Sri Kalki Enterprises Versus Commissioner of GST & Central Excise Chennai

M/s. Sri Kalki Enterprises Versus Commissioner of GST & Central Excise Chennai
Service Tax
2018 (11) TMI 1464 – CESTAT CHENNAI – TMI
CESTAT CHENNAI – AT
Dated:- 23-10-2018
Appeal Nos. ST/300 & 301/2012 – Final Order Nos. 42768-42769/2018
Service Tax
Ms. Sulekha Beevi C.S., Member (Judicial) And Shri Madhu Mohan Damodhar, Member (Technical)
Shri S. Jayanth, Consultant for the Appellant
Shri S. Govindarajan, AC (AR) for the Respondent
ORDER
Per Bench
Brief facts are that the appellants are engaged in manpower supply service. During the course of audit of accounts, it was noticed that the appellant had short-paid service tax for the period July 2008 to September 2009 and also noticed that it had paid service tax belatedly for the period from April 2006 to June 2008. On being pointed out, the assessee paid the service tax along with interest on various dates. They had also not filed the ST-3 returns during the said periods. Show cause notices were issued propo

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he appellant was under the impression that without paying the full liability of service tax amount, they cannot file the returns. The case is only of belated payments and there was no intention to evade payment of service tax. He argued that the appellant is a proprietary concern of which Smt. Revathi is the Proprietrix. Her husband was supporting her business and they had very low knowledge and understanding of the laws. There was much belated payment from the service receivers and the appellant could barely mange to meet the payment of salary and other expenses to the employees / staff due to backlog in receivables from their clients. He referred to the documents like pending payments by M/s. Agility Logistics Pvt. Ltd. for an amount of Rs. 18,23,360/-, sundry debtors list as on 31.3.2009 which shows outstanding amount of Rs. 44,06,360/- and also sundry debtors list as on 31.3.2010 for an amount of Rs. 56,62,005/-. They had also to pay medical expenses and compensations to personnel

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/2012, the adjudicating authority has imposed penalty under section 78 of the Finance Act, 1994. The ld. consultant has furnished documents to argue that there was only delay in payment of service tax and there was no act of suppression of facts with intention to evade payment of service tax. On perusal of the documents such as the list of sundry debtors etc., it is seen that there was huge amount pending as receivables. So also they had to meet expenses for salary, accident compensation of employees provided under manpower supply service. The department does not have a case that any of the transactions were unaccounted or that they had been indulging in a parallel accounting. It is commonly understood that the employees supplied through manpower supply service have to be given the salaries within due time. If the service receivers delay the payment, it would cause much hardship to the service provider as they have to make the statutory payments such EPF, ESI etc. to the Government. Th

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Seeks to extend the last date for filing of FORM GSTR-3B for the month of September, 2018 till 25.10.2018 for all taxpayers.

Seeks to extend the last date for filing of FORM GSTR-3B for the month of September, 2018 till 25.10.2018 for all taxpayers.
F.No. 3240/CTD/GST/2018/12 Dated:- 23-10-2018 Puducherry SGST
GST – States
Puducherry SGST
Puducherry SGST
GOVERNMENT OF PUDUCHERRY
COMMERCIAL TAXES DEPARTMENT
F.No. 3240/CTD/GST/2018/12.
Puducherry, the 23rd October 2018.
NOTIFICATION
In exercise of the powers conferred by sub-rule (5) of rule 61 of the Puducherry Goods and Services Tax Rules, 2017 (he

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In Re: M/s. Sadashiv Anajee Shete

In Re: M/s. Sadashiv Anajee Shete
GST
2018 (12) TMI 895 – AUTHORITY FOR ADVANCE RULING, MAHARASHTRA – 2019 (20) G. S. T. L. 688 (A. A. R. – GST)
AUTHORITY FOR ADVANCE RULING, MAHARASHTRA – AAR
Dated:- 23-10-2018
GST-ARA-32/2018-19/B-131
GST
SHRI B.V. BORHADE, AND SHRI PANKAJ KUMAR, MEMBER
PROCEEDINGS
(Under section 98 of the Central Goods and Services Tax Act, 2017 and the Maharashtra Goods and Services Tax Act, 2017)
The present application has been filed under section 97 of the Central Goods and Services Tax Act, 2017 and the Maharashtra Goods and Services Tax Act, 2017 [hereinafter referred to as “the CGST Act and MGST Act”] by Sadashiv Anajee Shete, the applicant, seeking an advance ruling in respect of the following questions.
1. Whether exemption under Sr. No. 13 of Notification No. 12/2017 – Central Tax (Rate) dated 28th June 2017 is applicable to the Applicant?
2. Whether the Applicant is liable to get registered under section 22/24 of CGST Act, 2017

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nt”) is engaged into the business of assisting believers, followers and devotees to book pundit/Brahmins online for their religious ceremonies like pujas, abhisheks etc. The said service is being provided through applicant's own website.
Applicant hires various expert Pundits in order to provide services of religious ceremony like pujas, abhisheks etc.
Applicant has three types of business models which are given as below:
Scenario-I
Scenario-II
Scenario-III
Website user will pay Rs. 2000 on online portal to applicant
Website user will pays Rs. 200 on Online portal to applicant
Website user will Pay Rs. 1800 on online portal to Applicant
Applicant will Pay Rs. 1800 to Pandit ji and retains Rs. 200
Website user will pay Rs. 1800 to Panditji
Applicant will Pay Rs. 1800 to Pandit ji

Panditji will pay Rs. 200 to Applicant
STATEMENT CONTAINING APPLICANTS INTERPRETATION OF LAW IN RESPECT OF THE QUESTIONS RAISED –
1. Whether exemption under Sr. No. 13 of N

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ST liability needs to be discharged, whether on the commission which the Applicant receives from pundits/website users or on the booking value received from website users?
Applicant's Submission:
As per above submissions, Applicant is not liable to pay GST. However, without prejudice to above submissions, even if we assume that Applicant is liable to pay GST then, GST liability needs to be discharged on the value of amount which the Applicant receives from Pundits/ website users.
03. CONTENTION – AS PER THE CONCERNED OFFICER SUBMITTED-
The submission, as reproduced verbatim, could be seen thus-
In continuation to the same it is to submit that a copy of application filed by the applicant was called for on email and copy of the same is enclosed herewith for ready reference and further report called for is as under:
1. Whether exemption under S. No. 13 of Notification No. 12/2017 Central Tax (Rate) dated 28th June 2017 is applicable to the Applicant?
The exemption under the s

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n what value GST liability needs to be discharged, whether on the commission which the Applicant receives from pundit Websites users or on the booking value received from website users?
The Applicant is liable to pay GST on the booking value received from website users.
04. HEARING
The case was taken up for Preliminary hearing on dt. 04.07.2018 when Sh. Anuj A Chordiya, Cost Accountant along with Sh. Sadashiv A. Shete, Applicant appeared and requested for admission of application. The applicant was informed to reframe their application and give full facts with respect to each question that he intends to raise in his application latest by 12.07.2018. Jurisdictional Officer, Ms. N.R. Jhangiani, Superintendent, Central Tax appeared and made written submissions.
The application was admitted and called for final hearing on 31.07.2018, Sh. Anuj A Chordiya, Cost Accountant appeared and made oral and written submissions. Jurisdictional Officer, Ms. N. R. Jhangiani Superintendent, Central

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t can choose as per their own option.
3. Applicant submits that his impugned services would fall under Sr. No. 13 of Notification No. 12/2017 – Central Tax (Rate) dated 28th June 2017, since they are providing services by way of conducting religious ceremonies by hiring various Pundits / Brahmins for the welfare of the people through their own website.
Hence, Applicant is not liable to pay GST on the said services. Therefore, applicant has raised the questions in his application for the clarity as under:-
1. Whether exemption under Sr. No. 13 of Notification No. 12/2017 – Central Tax (Rate) dated 28th June 2017 is applicable to the Applicant?
2. Whether the Applicant is liable to get registered under section 22/24 of CGST Act, 2017?
3. If the Applicant is liable to pay GST, then on what value GST liability needs to be discharged, whether on the commission which the Applicant receives from pundits/website users or on the booking value received from website users?
4. Considering

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ter referred to as the Income tax Act) or a trust or an institution registered under sub clause (v) of clause (23C) of section 10 of the Income-tax Act or a body of or an authority covered under clause (23BBA) of section 10 of the said Income-tax Act:
Nil
Nil
4.2 From the above notification, we find that the entry No.13 (heading-9963) covers the services by a person by way of “Conduct of any religious ceremony”. Thus it would cover services provided by a person who is conducting the religious ceremony
We find that as per web star dictionary meaning of condust is,
transitive verb-
1a: to direct or take part in the operation or management of
conduct an experiment,
conduct a business,
conduct an investigation.
b: to direct the performance of,
conduct an orchestra,
conduct an opera.
c: to lead from a position of command,
conduct a siege,
conduct a class.
4.3 In the present case applicant is facilitating in making available Pundits/Brahmins for the conduct of puja

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” person. The applicant is taking booking of services online on his own web site from the customers and intimates the names of pundits/ Brahmins who would perform the job to the customers also on online. For that purpose he is charging to the customers as per the models submitted.
Therefore, the Applicant is not covered under the scope of exemption notification entry No .13.
4.3. In the present case Punditji's are the person who are actually performing the services like puja, abhishek to the customers and therefore they are eligible for exemption from GST for their supply of services.
Hence the applicant is not covered under the entry No. 13 of exemption notification No. 14/2017-Central Tax (Rate) dated 28th June 2017 and therefore his services are not exempt. Hence it is not applicable to the Applicant.
5. Question -2, Whether the Applicant is liable to get registered under section 22/24 of CGST Act, 2017?
5.1 We find from the above discussion, the applicant is providing th

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ng contained in sub-section (1) of section 22, the following categories of persons shall be required to be registered under this Act,
(i) persons making any inter-State taxable supply;
(ii) casual taxable persons making taxable supply;
(iii) persons who are required to pay tax under reverse charge;
(iv) person who are required to pay tax under sub-section (5) of section 9;
(v) non-resident taxable persons making taxable supply;
(vi) persons who are required to deduct tax under section 51, whether or not separately registered under this Act;
(vii) persons who make taxable supply of goods or services or both on behalf of other taxable persons whether as an agent or otherwise;
(viii) Input Service Distributor, whether or not separately registered under this Act;
(ix) persons who supply goods or services or both, other than supplies specified under sub-section (5) of section 9, through such electronic commerce operator who is required to collect tax at source under section 52;
(x

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bsite and operate his business .it is business of e commerce. Therefore we find that applicant is covered under section 2 (44) and 2(45) of CGST/MGST ACT as a “Electronic commerce” and “Electronic commerce operator”. The definition of 2(44) and 2 (45) are reproduced as below for the clarity purposes,
2(44) “electronic commerce” means the supply of goods or services or both, including digital products over digital or electronic network;
2(45) “electronic commerce operator” means any person who owns, operates or manages digital or electronic facility or platform for electronic commerce;
5.3. We have seen that the as per the definitions as above, applicant is squarely covered under the “Electronic commerce operator Considering the section 24-and the categories of persons mentioned therein, shall be required to be registered under this Act, the category No (x) is related to “every electronic commerce operator;”. Therefore, as per discussion above we are in opinion that, the applicant

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lier and the recipient of the supply are not related and the price is the sole consideration for the supply.
(2) The value of supply shall include
(a) any taxes, duties, cesses, fees and charges levied under any law for the time being in force other than this Act, the State Goods and Services Tax Act, the Union Territory Goods and Services Tax Act and the Goods and Services Tax (Compensation to States) Act, if charged separately by the supplier;
(b) any amount that the supplier is liable to pay in relation to such supply but which has been incurred by the recipient of the supply and not included in the price actually paid or payable for the goods or services or both;
(c) incidental expenses, including commission and packing, charged by the supplier to the recipient of a supply and any amount charged for anything done by the supplier in respect of the supply of goods or services or both at the time of, or before delivery of goods or supply of services;
(d) interest or late fee

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re having an agreement with the applicant to provide their services as and when it is requisitioned but they are not the applicant's employees but are providing their services independently. The actual basic services like puja, abheshek etc are performed by the pundits or Brahmins which are exempted by nature of notification issued under GST ACT. The commission portion is received to the applicant out of total consideration received online from the service recipient. As per the provisions of law the commission is the supply of service and it would be the value on which he would be liable for GST and thus the Applicant would be liable to pay GST on the value of commission received from website users not for on total amount received.
05. In view of the extensive deliberations as held hereinabove, we pass an order as follows:
ORDER
(Under section 98 of the Central Goods and Services Tax Act, 2017 and the Maharashtra Goods and Services Tax Act, 2017)
NO.GST-ARA-32/2018-19/B-131
M

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In Re: M/s. Prem Ghan Products

In Re: M/s. Prem Ghan Products
GST
2019 (1) TMI 360 – AUTHORITY FOR ADVANCE RULING, MADHYA PRADESH – 2019 (20) G. S. T. L. 796 (A. A. R. – GST)
AUTHORITY FOR ADVANCE RULING, MADHYA PRADESH – AAR
Dated:- 23-10-2018
Case No. 16/2018 Order No. 17/2018
GST
RAJIV AGRAWAL AND MANOJ KUMAR CHOUBEY MEMBER
Present on behalf of applicant: Shree Arpit Mundra, CA and Shree Vikas Goel, Partner
PROCEEDINGS
1. The present application has been filed u/s 97 of the Central Goods & Services Tax Act, 2017 and MP Goods & Services Tax Act, 2017 (hereinafter also referred to CGST Act and MPSGT Act respectively) by M/s. Prem Ghan Products (hereinafter also referred to as applicant), registered under the Goods & Services Tax.
2. The provisions of the CGST Act and MPGST Act are identical, except for certain provisions. Therefore, unless a specific mention of the dissimilar provision is made, a reference to the CGST Act would also mean a reference to the same provision under the MPGST Ac

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. on supply of such product.
3.3. Prior to roll out of GST, i.e. prior to 01.07.2017, the applicant had been carrying out the same business and classifying and clearing/selling the impugned product under Chapter Heading 2106 of the schedule to the Central Excise Tariff Act 1985, and the applicant had been duly registered with the Central Excise Department.
3.4. The Applicant has contended that there are other major market players in this field who are dealing in similar products under the brand names 'Chutki', 'Paas Paas', 'Mastana Mouth Freshner' etc., and these particular products are being classified under Chapter 20 of the HSN attracting GST @12%.
3.5. The Applicant have further submitted that in light of the similar products of other manufacturers being classified under Chapter 20, the impugned product of the Applicant would also merit classification under Chapter 20 instead of prevailing Chapter 2106.
3.6. It has been reiterated in the Application that the classification of t

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ugar, khopra, sounf, fennel, dates, mishri, saccharin, menthol, papaya fruit, or natural flavouring substances, are liable to be classified under Chapter 21 i.e. 'Miscellaneous Edible Preparations' – 2106 (food preparations not elsewhere specified or included) and taxed at 18% GST as currently followed or under Chapter 20 i.e. 'Preparations of Vegetable, fruit, nuts or other parts of plants' and taxable at 12% GST?
5. DEAPRTMENT'S VIEW POINT:
The Concerned Officer of the Madhya Pradesh Commercial Tax Department viewed that the impugned commodity doesn't fall under Chapter 20 i.e. 'Preparations of Vegetable, fruit, nuts or other parts of plants' and taxable at 12% GST, but it comes under CHS 2106 i.e. food preparation not elsewhere specified or included.
6. RECORD OF PERSONAL HEARING:
6.1. Shree Arpit Mundra, CA and Shree Vikas Goel, Partner, appeared on behalf of the applicant for Personal Hearing and he reiterated the submissions already made in the application.
7. DISCUSSIONS AN

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hey had been clearing the impugned product under Chapter Head 2106.
7.3. We further observe that the Applicant has been clearing/selling/supplying the impugned product under Chapter 21016 since long, i.e. much prior to roll out of GST with effect from 01.07.2017. We also take a note of the fact narrated by the Applicant in Para 2 of Annexure 04 (Statement containing the applicant's interpretation of law and facts) of the Application, which says, 'The classification of the assessee's finished product under chapter heading 2106 is in line with the classification under Central Excise Law and Central Excise Tariff'. This statement of the Applicant is enough to conclude that there was no dispute regarding classification of the impugned product during pre-GST regime.
7.4. We find that while the impugned product was being classified under Chapter Head 2106 of the erstwhile Central Excise Tariff Act 1985, there is neither any change in ingredients nor any change in manufacturing process. To

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hener, we do not find any reason in reviewing the established and settled classification of impugned goods.
7.8. Having observed as above, we hold that the impugned goods shall be aptly classifiable under Chapter Head 2106 and would attract prevailing rate of GST @18% [(9% CGST + 9% SGST) or 18% IGST as the case may be], as 'Food preparations not elsewhere specified or included', in terms of Notification No.01/2017-Central Tax (Rate) and Corresponding notification under The MPGST Act 2017 the entry number 23 of Schedule III to the said notification.
RULING
8. The Advance Ruling on question posed before the authority is answered as under:
8.1 The product Mouth freshener as described in the Application will merit classification under Chapter Heading 2106 of the GST Tariff as 'Food preparations not elsewhere specified or included' and would be chargeable to GST at applicable rate under the said tariff entry, presently read with Notification No.01/2017-Central Tax (Rate) dtd.28.06.2017

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In Re: M/s. K Uttamlal Exports Pvt Ltd.

In Re: M/s. K Uttamlal Exports Pvt Ltd.
GST
2019 (2) TMI 742 – AUTHORITY FOR ADVANCE RULING, MAHARASHTRA – 2019 (21) G. S. T. L. 577 (A. A. R. – GST)
AUTHORITY FOR ADVANCE RULING, MAHARASHTRA – AAR
Dated:- 23-10-2018
GST-ARA-57/2018-19/B-130
GST
SHRI B.V. BORHADE, AND SHRI PANKAJ KUMAR, (MEMBER)
PROCEEDINGS
(Under section 98 of the Central Goods and Services Tax Act, 2017 and the Maharashtra Goods and Services Tax Act, 2017)
The present application has been filed under section 97 of the Central Goods and Service Tax Act, 2017 and the Maharashtra Goods and Services Tax Act, 2017 [hereinafter referred to as “the CGST Act and MGST Act”] by K Uttamlal Exports Pvt. Ltd., the applicant, seeking an advance ruling in respect of the following questions.
1) Whether the goods exported out of India directly by the manufacturer mentioning the applicant as Third Party Exporter for the purpose of Foreign Trade Policy will be considered as exports at the hands of the Applican

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. Ampak Company Inc. (referred to as “Ampak”) in USA.
1.2. The Applicant submits that, it does not own any manufacturing facility in India. The Applicant procures the chemicals from the manufacturers for export to Ampak.
1.3. The relevant fact of the present Advance Ruling Application is narrated in brief as under:
1.4. The Applicant received an order for export of Linear Alkyl Benzene Sulphonic Acid 96%, on 8/8/2017 vide Purchase Order Number: P17013051 from Ampak. Copy of P.O Dated 8/8/2017 is marked and annexed herewith as Annexure 3.
1.5. On receipt of the above confirmed purchase order from Ampak, Applicant placed back to back purchase order on M/S Sai Fertilizers & Phospates Pvt Ltd. (hereinafter referred to as “Sai Fertilizers”) for Linear Alkayl Benzene Sulphonic Acid 96% on 09/08/2017 vide P.O. Number # KUEM/SFPPL/090817. copy of P.O. Number #KUEM/SFPPL/090817 is marked & attached herewith as Annexure 4.
1.6. On receipt of above confirmed P.O Number #KUEM/SFPPL/090817 dt

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tes that on export of the goods, they raise the invoice on Ampak vide invoice no. 16033-A. Copy of the invoice no 16033-A is marked and annexed herewith as Annexure 8.
1.10. Applicant submits that, they have realized foreign currency for the above exports on 09.03.2018. The Bank Realization Certificate (BRC) is issued in the name of the Applicant on 14.03.2018. The copy of the Bank Realization Certificate is marked and annexed herewith as Annexure 9.
1.11. As far as GST is concerned, the Applicant has claimed the above supplies as exports while filing the GST Returns. The Applicant has Letter of Undertaking (LUT) valid for the period of the export concerned in the above transaction.
1.12. The applicant submits that, Sai Fertilizers has also claimed the above supply of goods as exports under GST on payment of the IGST. The copy of the GST invoice of Sai Fertilizers is marked and annexed herewith as Annexure 10.
Statement containing the applicant's interpretation of law and or facts

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ant. The goods are indeed exported out of India to USA which is outside India. Thus, the above transaction shall qualify as export supply under the GST law.
2.6. Secondly, the said exports supply will be at the hands of the Applicant only and not at the hands of the manufacturer Sai Fertilizers.
2.7. Applicant submits that it is the Applicant who has got the export order, the BRC and other documents in its name. The supply is made by the Applicant to Ampak USA. The manufacturer has made supply to the Applicant and not to Ampak USA though the Shipping Bill is prepared by the manufacturer Sai Fertilizer. Further in all the documents of the customs also, the applicant is named as the Third Party Exporter.
2.8. The Applicant submits that the payment has been received by the applicant in foreign currency which is evident from the BRC annexed along with the present application.
2.9. Thus, the Applicant is the exporter for the all purposes of the GST laws and not the manufacturer Sai Fert

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its name. Accordingly, the Customs Authorities have been issuing the shipping bill in the name of the manufacturer exporters.
3.3. However, all other documents such as export order, BRC, invoice is in the name of the third party exporter.
3.4. In the present case Sai Fertilizers is the manufacturer exporter under FTP and the Applicant is the third party exporter.
3.5. All the BRC and other documents are in the name of the Applicant except for the Shipping Bill. However, in the shipping bill also the name of the applicant appears as the third party exporter.
3.6. Thus, though under the FTP manufacturer is considered as the exporter as per Para 2.42, for the GST law only the applicant can be considered as the exporter.
3.7. The applicant submits that what may be considered as export under the FTP does not have a binding effect on the GST law. Under GST law, the export supply has been defined and accordingly the exported has to be construed.
3.8. Thus, even though the Shipping Bill

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al Authority, the Appellant is filing the present submissions:
4. The Applicant submits that the Applicant is a 100% exporter and has claimed refund of the unutilized balance of ITC. The Applicant has not claimed refund of ITC only on those transactions where the Applicant has purchased the goods on payment of GST and exported the same in its own name.
5. The Applicant submits that the Applicant has not claimed refund on ITC on third party exports transactions. In other words, the Applicant has not claimed any refund on the exports where the Applicant is appearing as Third Party Exporter in the Shipping Bill.
6. The Applicant submits that in the above referred letter dated 04.09.2018 of the Jurisdictional Authority, the Jurisdictional Authority has accepted that even for the Third Party Exports transactions the Applicant must be considered as Exporter as far as GST laws is concerned.
7. The Applicant further submits that Ld. Jurisdictional Authority has further stated that supplies

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om the premises of the manufacturer to client. The export invoice, shipping bill, bill of lading all mention the manufacturer as exporter and M/s. K Uttamlal Exports Pvt Ltd as the third party exporter. On export of goods, M/s. K Uttamlal Exports Pvt Ltd raises the invoice to client and foreign currency is realised. The Bank Realisation Certificate (BRC) is issued in the name of M/s. K Uttarnlal Exports Pvt ltd.
Annexure 2 Para 2 (2.1 to 2.9)- The applicant, M/s. K Uttamlal Exports Pvt Ltd, has claimed to have exported the goods outside India. Section 2(5) of the IGST Act, 2017, defines export of goods as under “Export of goods” with its grammatical variations and cognate expressions means taking goods out of India to a place outside India.
There is no dispute regarding export of goods. The applicant is the third party exporter. The goods have been exported by the manufacturer directly from their premises to client. The export invoice, shipping bill, bill of lading also mention the m

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ods exported out of India directly by the manufacturer mentioning the applicant as Third Party exporter for the purpose of Foreign Trade Policy will be considered as exports at the hands of the Applicant under the GST laws. Yes, however, manufacturer exporter can also claim it as exports. The export invoice, shipping bill and bill of lading all are in the name of manufacturer exporter.
Question 2- If the said transaction, is held to be exports at the hands of the applicant under GST then whether it will qualify zero rated supply? Yes, it will be counted as zero rated supply on part of Third party exporter. In addition, third party exporter cannot claim it as exempted supply, as done by applicant in their monthly return.
04. HEARING
The case was taken up for Preliminary hearing on dated 08.08.2018, when Sh. Rahul Thakkar, Advocate along with Sh. Janak Shah, Director and Sh. Amol Patil appeared and made written and oral submissions for admission of application as per contentions in

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s office by the applicant. On being admitted the applicant made arguments and submissions as under:-
“The applicant, on receipt of the above confirmed purchase order from Ampak, has placed back to back purchase orders on M/s. Sai Fertilizers and Phospates Pvt Ltd. (hereinafter referred to as “Sai Fertilizers”) for the said goods further to which Sai Fertilizers manufactured the said goods and exported the same directly from its premises under the Commercial Invoice and after filing Shipping Bill (where the Applicant is mentioned as the Third Party Exporter).The Bill of Lading prepared by the Shipping Line for the said exports also mentions the applicant as the third party exporter. Pursuant to export of the goods, the applicant raises invoice on Ampak. In respect of the said exported goods, the Applicant has received remuneration in foreign currency and the Bank Realization Certificate (BRC) is issued in their name. The Applicant has submitted that they have a Letter of Undertaking (L

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eemed to have been paid
(e) Determination of the liability to pay tax on any goods or services or both
(f) Whether the applicant is required to be registered
(g) Whether any particular thing done by the applicant with respect to any goods or services or both amounts to or results in a supply of goods or services or both within the meaning of that term
In the present case on the basis of the arguments made by them and scrutiny of records submitted by the applicant and the arguments put forth by them, we find that their main question is whether the transaction effected in the present case can be considered as exports made by them or the manufacturer exporter Sai Fertilizers. On proper and detailed examination of full facts as put by the applicant at the time of the final hearing, we find that this question is not covered under the purview of Section 97 of the CGST Act, 2017.
Hence we hold the subject application is not maintainable and cannot be entertained and there

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In Re: M/s. Loyalty Solutions and Research Private Limited, Gurugram

In Re: M/s. Loyalty Solutions and Research Private Limited, Gurugram
GST
2019 (2) TMI 1004 – APPELLATE AUTHORITY FOR ADVANCE RULING, HARYANA – 2019 (22) G. S. T. L. 297 (App. A. A. R. – GST)
APPELLATE AUTHORITY FOR ADVANCE RULING, HARYANA – AAAR
Dated:- 23-10-2018
HAAAR/2018-19/01
GST
SMT. ASHIMA BRAR AND MRS. MANORANJAN K VIRK, MEMBER
BRIEF FACTS OF THE CASE:
The Present appeal has been preferred by the applicant M/S Loyalty Solutions and Research Pvt. Ltd. (LSRPLI) against the Advance Ruling No. HAR/HAAR/R/2017-18/4 Dated 11.04.2018 = 2018 (7) TMI 1421 – AUTHORITY FOR ADVANCE RULING – HARYANA passed in their application dated 12.01.2018.
2. The applicant namely M/s. Loyalty Solutions and Research Pvt. Ltd. (LSRPL), owns and operates a reward point based loyalty programme that is integrated towards it partners and their customers. Under this programme, LSRPL is providing certain services to its clients/ partners such as M/s. Nice Chemicals Pvt. Ltd. (NICE). Th

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. The pattern of this loyalty programme is as follows.
a) on purchase of products of “partners” to this loyalty programme, end-customers get reward/ payment points.
b) These rewards points can be redeemed by customers, while making future purchases of products of “partners”.
c) In pursuance to these reward pöints management, “partner” transfers arnount equivalent to 0.25 of INR, per reward point, as issuance charges to LSRPL
d) Whenever any purchase is made by end customer, by using/ redeeming rewards points, LSRPL transfers amount equivalent to 0.25 INR per reward point used to the concerned store and the concerned store gives discounts on the ,payment to be received from end-customer to this extent.
e) The rewards points have validity period of 36 months, meaning thereby that the customer cannot redeem these reward points, after expiry of 36 months from the date of issuance.
f) It may happen that the customer does not or is not able to redeem the rewards points, within the

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017 and therefore would be outside the scope and levy of GST.
b) Whether the value of points forfeited of the applicant on which money has been paid by the issuer of points on account of failure of the end customers to redeem the payback points within their validity period can be treated as “supply of any other goods or services and consequently be chargeable to GST under the CGST, HGST or IGST Act?
Comments of the concerned officer U/S 98(1) OF THE CGST HGST ACT, 2012
6. The Deputy Excise & Taxation Commissioner (ST), Gurgaon (East), vide letter No.3086 dt.22.03.18, submitted the requisite comments on both the above questions raised by the applicant, as under:
a) The applicant recovers the underlying value of 0.25 INR per reward point to the Customers of the partners enrolled under the loyalty programme and on issuance of such points the applicant charges issuance fees. However, the applicant nowhere submits that the amount received by the applicant in return of issuing points are

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oints are issued in exchange of some consideration and acts as an discount for the customers, who uses these payback points and the applicant transfers the consideration attached with payback points to the vendors. Therefore, the above stated transaction will attract GST.
Decision of Advance Ruling Authority
7. Advance Ruling under Section 98 of the CGST/ HGST act 2017 was pronounced as under:
I. The value of points forfeited of the applicant on which money had been paid by the issue of points on account of failure of the end customers to redeem the payback points within their validity period would amount to consideration received in lieu of services being provided by LSRPL to its clients and thus would be outside the scope of being considered as 'actionable claim' other than lottery, gambling or betting and therefore would qualify as supply of services in terms of Section 7 of the Central Goods and Services Act, 2017/ Haryana Goods and Services Act, 2017 and therefore would be with

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t for making purchases from Partner stores. The “Payback Points” are issued by the Partner.
(2) The Payback Points so issued can be redeemed by the End Customers with any of the 'Redemption Partners' for buying goods or services within the 'Payback Coalition Network'. Accordingly, such Payback Points are in the nature of 'debt' or 'actionable claims' which are to be honoured by the Appellant as and when presented for redemption.
(3) Since the points are 'debt' or 'actionable claims' which are to be honoured by the Appellant, the underlying value of the Payback Points so issued to / or redeemed by the End Customers is recovered by the Appellant from its Partners either at the time of their issuance or at the time of their redemption depending on the business model opted by the Partners.
(4) The Payback Points so issued, normally have a validity period of 36 months during which the said points can be redeemed by the End Customers for any of the reward options available to them.
(

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redeemed / burnt.
ii. As and when the customers burn / redeem the Payback Points available with them, the Partners become liable to compensate the Appellant for the underlying value of the Payback Points redeemed by the End Customers at their face value.
iii. In such cases, in order to secure payment towards such Payback Points (as and when they are redeemed) the Appellant generally seeks securities such as Bank Corporate Guarantees to guarantee the payment of the value of the Payback Points which are redeemed by the End Customers
iv. For providing the said services of loyalty program management, the Appellant realizes fixed fees, variable service fees and enrollment fees from its Partners (“Management Fees”) and discharge GST liability on the same.
B. Issuance Model:
i. The issuance model is identical to the aforesaid model except the fact that the payment of INR 0.25 per Payback Point is made upfront to the Appellant by the Partner without waiting for actual redemption.
ii. The

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retained by the Appellant.
It is pertinent to note that the Appellant always offers its Partners with the option to choose between either of the afore-mentioned business models where it is always up to the Partner as far as selection of business model is concerned.
It is further pertinent to note that some of the Appellant's biggest Partners have opted for the redemption model which can be inferred from the fact that during the F.YF.Y. 2014-15, F.Y. 2015-16 and F.Y. 2016-17 60%, 51%, 49% of the revenue (excluding other income) earned by the Appellant respectively, was from redemption model partners as compared to 31 %, 43%,47% respectively, earned by the Appellant from the issuance model.
In this regard, some of the commercial considerations due to which the Partners opt for issuance model, are as follows:
i. Partners are reluctant to provide appropriate bank guarantees to the Appellant to guarantee the value of payback points which are redeemed by the End customer.
ii. Partners

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he present business model is management of loyalty program for which the parties consciously negotiated and agreed on a consideration which is referred here to as the Management Fee. The said Management Fee charged by the Appellant is not influenced in any manner by possible point expiry, Accordingly, commercially agreed amount reflects the true and correct consideration payable by to one party to another for rendition of an agreed service.
Moreover, the retention of Point expiry Income is only a matter of chance and is totally contingent upon redemption of Payback Points by the End Customer and is not related in any manner to rendition of any service. Therefore, the Appellant since its inception is not providing any service in relation to such point expiry and therefore no GST liability can be fastened upon the Appellant in this regard. Actually for such point expiry, no services has actually happened.
In light of the aforementioned factual scenario, the Appellant filed an applicati

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treated as 'supply' of any other 'goods' or 'services' and consequently be chargeable to GST under the CGST, HGST or IGST Act?
1. In this regard, a brief summary of the statement containing Appellant's interpretation of GST provisions vis-å-vis the aforementioned factual scenario, as made in the Appellant's application for advance ruling is as follows:
i. While “actionable claims” have been expressly included under the definition of “goods”, only actionable claims in the nature of lottery, betting and gambling are covered under the scope of levy of GST In terms of Section 7 read with Entry 6 to Schedule III of the CGST Act and the HGST Act or IGST Act
ii. Therefore, any goods which are in the nature of 'actionable claims' would not be chargeable to GST unless such 'actionable claims' are in the nature of lottery, betting and gambling.
iii. In this regard, it was submitted that Section 2(1) of the CGST Act, defines the term 'actionable claim' as follows:
“(I) actionable cla

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A.
vi. It was further submitted that since the Payback Points are not in the nature of lottery, betting or gambling, the supply of Payback Points cannot be treated as a supply of 'goods' or 'services' as per Schedule III of the CGST Act and the HGST Act. Accordingly, it was submitted that supply of such Payback Points is outside the scope and levy of GST under the CGST Act, HGST Act or the IGST Act.
vii. Accordingly, any amount retained by the Appellant on account of lapsed Payback Points is nothing but a consideration for Payback Points, which, as discussed above, are in the nature of actionable claims and are therefore outside the scope or levy of GST.
viii. It was further submitted that since any consideration received from issuance of an actionable claim is outside the purview of GST, the Appellant is of the view that any amount retained by the Appellant in relation to expired Payback Points would not be chargeable to GST.
2. That the personal hearing with respect to the aforem

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y period, the Payback Points no longer remain to be in the nature of 'actionable claims'.
iii. Therefore, post the expiry of the said Payback Points, they are not covered within the specific exclusion provided under Schedule Ill of the CGST Act and the HGST Act.
iv. Accordingly, the amount retained by the Appellant post the expiry of the Payback Points is nothing but revenue of the Appellant coming from the respective Partners which has been earned by them, owing to the activities of their providing services to the said Partners in the form of management of Loyalty Program.
v. It was further stated that the agreement, entered into by the Appellant with its Partners for the provision of the services of Loyalty Program management, is also evident of the fact that revenue is retained by the Appellant post expiry of Payback Points.
vi. The amount retained by the Appellant due to expiry of Payback Points is therefore liable to be considered as consideration for supply of services by the

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whether the nature of Payback Points (which are considered as actionable claim during their validity period in the impugned order of the Authority of Advance Ruling) changes post expiration of their validity period? and The amount retained by the Appellant on account of such expiration is therefore liable to be added to the value of taxable supplies made by the Appellant?
(2) How can Payback points which are considered as “goods” during their validity period becomes supply of “service” post their expiration?
7. Being aggrieved by the finding of the Impugned Order the Appellant has preferred this appeal on the grounds mentioned hereunder which are without prejudice to one another.
The Appellant craves leave, to add to, amend, modify, rescind, supplement or alter any of the grounds mentioned hereunder and/or produce such records, documents, calculations as deemed *necessary either before or at the time of hearing of this appeal.
Questions being agitated by the Appellant in present A

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of the Central GST and Haryana GST Acts of 2017 reads as under:
“100. (1) The concerned officer, the jurisdictional officer or an applicant aggrieved by any advance ruling pronounced under sub-section (4) of section 98, may appeal to the Appellate Authority.
(2) Every appeal under this section shall be filed within a period of thirty days from the date on which the ruling sought to be appealed against is communicated to the concerned officer, the jurisdictional officer and the applicant: Provided that the Appellate Authority may, if it is satisfied that the appellant was prevented by a sufficient cause from presenting the appeal within the said period of thirty days, allow it to be presented within a further period not exceeding thirty days.
(3) Every appeal under this section shall be in such form, accompanied by such fee and verified in such manner as may be prescribed.”
In terms of Section 100(2) the appeal was required to be submitted within 30 days from the date of communicat

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vant notification notifying the Appellate Authority was dated 18.10.2017 and not a recent one as argued by the Appellant. That, in the absence of an evidence of application's timely receipt, the argument of timely dispatch held no good. That, the appeal has clearly become time-barred and right had already accrued to the authority to decide on the Appeal.
However, the AAAR observed that given this to be a very initial phase of Advance Rulings or Appeals therein, a liberal view can be taken notwithstanding the non-adherence to time-schedule by the Appellant. Also, the Appeal being within the condonable period of further 30 days in terms of Proviso to Section 100(2) of the Acts ibid, the request for condonation of delay is being acceded to.
b. Submission of the Applicant:
During the hearing the appellant while reiterating the submissions made in their written reply put forth that the basic emphasis of their submissions was that an Actionable claim remains an actionable claim.
They sub

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nerated.
v. That, they are the generators and issuers of the Payback Points;
vi. They are selling the payback points which are actionable claims therefore their revenue in the instant case has resulted from the sale of payback points/ Actionable Claims.
vii. That, they charge 'Management fee' from the Partners and the amount incurring on account of unredeemed points has no bearing on the consideration for the services provided to the Partners because in several cases 100% of the generated points get redeemed and no income occurs on account of unredeemed payback points.
12. Discussions:
We have gone through the facts in case, the submissions of the Appellant and the record of personal hearing.
The observations to the above mentioned point are enumerated below point-wise. Discussion in details has been taken up thereafter.
i. There are 3 types of supplies, 'Goods', 'Services' and 'Actionable Claims';
The submission of the appellant is misplaced.
All kinds of actionable claims

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(52) “goods” means every kind of movable property other than money and securities but includes actionable claim, growing crops, grass and things attached to or forming part of the land which are agreed to be severed before supply or under a contract of supply;
Thus, under the GST law, there are only 3 types of supplies – Goods or Services or both. Supplies of all actionable claims are the supplies of Goods for the purpose of GST law.
Also, as discussed infra, the amounts accounted for as revenue from the unredeemed Payback-points by the appellant, do not qualify to be actionable claims. The discussion on this aspect has been taken up infra.
ii. There are no Invoices issuable for the 'Actionable Claims';
As mentioned, the unredeemed Payback-points by the appellant do not qualify to be actionable claims. Admittedly, the appellants receive payment against the total generated points, upfront in terms of the contract executed with the 'partners' and record the same as revenue in their

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eme, the appellants are surely generators of the program but the points can never be generated unless there is a transaction between the end-customers and the 'Partners'.
It is observed that necessary financial back-up for the generation and redemption of the points is provisioned by the 'Partners'; the generation forms a component of the overall functioning of the scheme by the appellant.
v. That, the end-customers can directly sue them for non-redemption or deficiency of service; they have the option to sue them directly or the partner from the purchases with whom the points were generated.
It is observed that as the name suggests and as it turns out from the tenets of the loyalty scheme as such, the loyalty program is aimed at generating, maintaining and retaining the end-customer's loyalty towards the Partners, for the requisite supplies.
The end-customers undertaking the transaction identifies the Partner as the provider of the payback points and for the remedy for any deficie

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appellants are not selling any payback points but are providing a facility by way of a software programme to the Partners to help Partners generate and retain loyalty of the customers undertaking any transactions with them.
Even if it is deemed for the arguments sake that the appellants are selling the Payback points, the consideration flows to them for the same from Partners only. However it is not the appellant's case that there is a separate agreement with the partners for the same. Admittedly the transaction linked generation of payback points is a part of the service package for the overall management of the scheme by the appellants.
It is further observed that the making available of the payback points to the end-customers is also not the selling of these points to the end-customers as the consideration for the same is coming from the Partners only. In fact there is no service either to the end customers, by the appellants on the same corollary that the consideration for the p

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t the time of the personal hearing.
From the submissions made by the appellant in writing as a part of the written Appeal and those made at the time of the hearing it is very clear that the loyalty programme is a programme devised with the aim of generating and maintaining customer loyalty towards the partners entering into agreement with the appellants for the running and managing the overall scheme.
It is not the appellant's case that consideration for maintaining and facilitating encashment of payback points is flowing from the end customers. In fact it is admitted position that the amount received upfront from the Partners in respect of the generated payback points is booked as revenue in their account.
Obviously, the consideration for total payback points including those becoming unredeemed ones after validity period, has flowed from the Partners.
We observe that this consideration has two components – fixed and variable. The fixed component is what has been received by the ap

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Seeks to supersede Notification No. FIN/REV-3/GST/1/08 (Pt-1)/481 dated the 27th September, 2017

Seeks to supersede Notification No. FIN/REV-3/GST/1/08 (Pt-1)/481 dated the 27th September, 2017
FIN/REV-3/GST/1/08(Pt-1)(Vol.1) /295 Dated:- 23-10-2018 Nagaland SGST
GST – States
Nagaland SGST
Nagaland SGST
GOVERNMENT OF NAGALAND
FINANCE DEPARTMENT
(REVENUE BRANCH)
F.NO.FIN/REV-3/GST/1/08(Pt-1)(Vol.1) /295
Dated: 23rd October, 2018
NOTIFICATION
In exercise of the powers conferred by sub-section (2) of section 23 of the Nagaland Goods and Services Tax Act, 2017 (4 of 2017), hereinafter referred to as the "said Act", the State Government, on the recommendations of the Council and in supersession of the notification of the Government of Nagaland; Finance Department (Revenue Branch) F.NO.FIN/REV-3/GST/1/08 (Pt-1)

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(ii) such persons making inter-State taxable supplies of the products mentioned in column (2) of the Table below and the Harmonised System of Nomenclature (HSN) code mentioned in the corresponding entry in column (3) of the said Table, when made by the craftsmen predominantly by hand even though some machinery may also be used in the process:-
Table
Sl. No.
Products
HSN Code
(1)
(2)
(3)
1.
Leather articles (including bags, purses, saddlery, harness, garments)
4201, 4202, 4203
2.
Carved wood products (including boxes, inlay work, cases, casks)
4415, 4416
3.
Carved wood products (including table and kitchenware)
4419
4.
Carved wood products
4420
5.
Wood turning and lacquer ware
4421
6.
Bamboo products [decorative and

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re)
7418
21.
Metal statues, images/statues vases, urns and crosses of the type used for decoration of metals of Chapters 73 and 74
8306
22.
Metal bidriware
8306
23.
Musical instruments
92
24.
Horn and bone products
96
25.
Conch shell crafts
96
26.
Bamboo furniture, cane/Rattan furniture
94
27.
Dolls and toys
9503
28.
Folk paintings, madhubani, patchitra, Rajasthani miniature
97
Provided that such persons are availing the benefit of notification No. 03/2018 – Integrated Tax, dated the 22nd October, 2018, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i) vide number G.S.R. 1052 (E), dated the 22nd October, 2018:
Provided further that the aggregate value of such supplies, to be com

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Bond Wavier Certificate of goods supplied under Deemed Exports after implementation of GST.

Bond Wavier Certificate of goods supplied under Deemed Exports after implementation of GST.
Query (Issue) Started By: – harkirat singh Dated:- 22-10-2018 Goods and Services Tax – GST
GST
Dear Sir,
After implementation of Good and Service Tax in India, we have supplied goods under Deemed Exports Scheme to domestic Buyer. We have obtained Advance Authorisations vide invalidation letter provided by domestic Buyer.
Now goods have been supplied, Invoices were issued at the time of dispatc

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reversal of GST ITC on Sale of MEIS/SEIS at nil rate under GST

reversal of GST ITC on Sale of MEIS/SEIS at nil rate under GST
Query (Issue) Started By: – SHAHID HASHMI Dated:- 22-10-2018 Last Reply Date:- 24-10-2018 Goods and Services Tax – GST
Got 1 Reply
GST
Sir, We are manufacturer and exporter of Wires & Cables. We are selling our products in domestic market as well as also exporting its outside India. We are getting MEIS Script. Now we are selling the MEIS Script in domestic market. Earlier there was IGST 12% /5%. As per recent Notification , Sales of script is come under exempted supply under Chapter heading 4907.
My queries are as follows:
(i) Whether at the time of supply of MEIS as goods covered under 4907 as exempt supply, is it fulfill the provisions of section 17(2) of the ac

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Is Government SEZ Authority required to deducts TDS

Is Government SEZ Authority required to deducts TDS
Query (Issue) Started By: – CASeetharaman KC Dated:- 22-10-2018 Last Reply Date:- 24-10-2018 Goods and Services Tax – GST
Got 5 Replies
GST
Is a Government SEZ Authority formed by Act of parliament required to deduct TDS or would it be excluded under the proviso to Section 51 "Provided that 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."
Reply By DR.MARIAPPAN GOVINDARAJAN:
The Reply:
In my view it is not required.
Reply By CASeetharaman KC:
The Reply:
Sir I subscribe to your view and wish it is correct but there are some areas which may be looked at
1. CGST Act Section 51 read with Section 20 of IGST Act TDS would be applicable to both intra and inter state transactions
2. The proviso says the the no deduction is required if location

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S is to be deducted as IGST Tax.
The fliers issued by the Board also clarifies the same and relevant portion is reproduced below:-
“Registration of TDS deductors: A TDS deductor has to compulsorily register without any threshold limit. The deductor has a privilege of obtaining registration under GST without having required to obtain PAN. He can obtain registration using his Tax Deduction and Collection Account Number (TAN) issued under the Income Tax Act,1961.
……..This can be explained in the following situations.
a) Supplier, place of supply and recipient are in the same state. It would be intra-state supply and TDS (Central plus State tax) shall be deducted. It would be possible for the supplier (i.e. the deductee) to take credit of TDS in his electronic cash ledger.
b) Supplier as well as place of supply are in different states. In such cases, integrated tax would be levied. TDS to be deducted would be TDS (Integrated tax) and it would be possible for the supplier (i.e. the

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me can be taken by the local supplier to pay CGST and SGST so even if the TDS is deducted the input can be availed by the supplier
2. The question which arises here is that by virtue of Section 7 (5) of the IGST Act all supplies to SEZ units are interstate transactions – Does this mean that the Location of the Supplier and the Place of Supply is in a different state from the state of registration of the recepient ?
Request your thoughts on these two points which would be very helpful
Reply By Alkesh Jani:
The Reply:
Sir,
I acknowledge your concern. In this regards, as far as my knowledge permits me, I have following comments to offer:-
In terms of Section 51 of CGST Act, 2017, the notified person is required to obtain registration as TDS. Normally, the TDS registration will be based on TAN, although holding PAN. Some Govt. Department such as Railway and postal department are example of holding PAN as well as TAN. TDS is required to deduct Tax if the contract value is more than &#

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LEVY OF GST ON LOTTERY

LEVY OF GST ON LOTTERY
By: – DR.MARIAPPAN GOVINDARAJAN
Goods and Services Tax – GST
Dated:- 22-10-2018

Goods
Section 2(52) of the Central Goods and Services Tax Act, 2017 ('Act' for short) defines the term 'goods' as every kind of movable property other than money and securities but includes actionable claim, growing crops, grass and things attached to or forming part of the land which are agreed to be severed before supply or under a contract of supply.
Actionable claim
Section 2(1) of the Act defines the expression 'actionable claim' as that shall have the same meaning as assigned to it in section 3 of the Transfer of Property Act, 1882
Section 3 of the Transfer of Property Act, 1882, defines the expression 'actionable claim' as a claim to any debt, other than a debt secured by mortgage of immovable property or by hypothecation or pledge of moveable property, or to any beneficial interest in moveable property not in possession either actual or constructive, of th

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pply of lottery tickets would need to be taxed as supply of goods.
GST rate on lottery
In respect of the Agenda Item on Lottery (17th GST Council Meeting) , the Council approved the following –
* The supply of lottery shall attract GST rates as under –
* Lottery run by State Governments – 12% of face value of lottery ticket (Face value to be inclusive of GST)
* Lottery authorized by State Governments – 28% of face value of lottery ticket (Face Value to be inclusive of GST )
* Tax can be levied by the State Governments on the first point of sale by the State Government to the lottery distributor or the sole selling agent appointed by the State Government on reverse charge basis and to exempt agents/stockists below the distributor.
Challenge before High Court on levy of GST on lotteries
In 'Teesta Distributors and others v. Union of India and others' – 2018 (10) TMI 941 – Calcutta High Court, the petitioners have sought a declaration that, lotteries are exempt from tax under

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ct, 2017 or any of the SGST Acts.
* Since lottery is neither 'goods' nor 'service', no levy under the Integrated Goods and Services Tax Act, 2017 can be made.
* When CGST, 2017 and IGST, 2017 propose to tax a lottery, it goes beyond the constitutional definition of 'goods'.
* Since lottery is not 'goods' within the meaning of the Constitution, neither Central nor the State Governments can enact any law for the purpose of levying sales tax on the lottery.
* Treating lottery to be a 'goods' would do violence to the provisions of the Lotteries (Regulation) Act, 1998.
* Sale of lottery ticket is a trade under Article 301 to 304 of the Constitution.
* Differential rates of tax cannot be fixed for lottery tickets imported from other States and lottery tickets produced in the States.
* The discrimination in rates varies between 12 and 28 per cent. It is per se unsustainable and is required to be stuck down. All lottery tickets organized by the States have to be treated at par.

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ts, Central and State Legislations.
* Article 366(12) of the Constitution defines 'goods' to include all material commodities and articles. Accordingly the lotteries are 'goods'.
* The term 'goods' used in Article 366(12) of the Constitution of India is very wide and includes all types of movable properties whether those properties are tangible or intangible and is an inclusive one.
* Lotteries are 'actionable claim' and are included in the definition of 'goods'.
* Lottery is not a commodity in the market which can be bought against consideration and on payment of consideration the property passes to the purchaser
* The Union Parliament and the State Legislature have the competence to levy tax on any item including lottery.
* The State is allowed to pick and choose districts, objects, persons, methods and rates of taxation, if the State, does so reasonably.
* The Legislature enjoys very wide latitude in classification for taxation.
* A statute cannot be declared uncons

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uthorized by the State Government in another State attracts in aggregate 28 per cent, with 14 per cent each under the CGST and SGST.
* The notifications have been issued pursuant to the recommendations made by the GST Council in its 17th meeting. The rates are not discriminatory and are intended to preserve economic uniformity and the interest of the constituent States. According to him, the tax component is included in the price of the ticket. The end customer who purchased the ticket is not saddled with any additional tax burden.
Union of India submitted the following before the High Court-
* Imposition of GST on lottery was discussed at length during the 17th GST Council meeting held on June 18, 2017. The States who are parties to the present writ petition were present in such Council meeting. The GST Council approved and resolved that, sale of lottery ticket will attract GST. The rates were also agreed upon. Therefore, the States should not be permitted to contend contrary to

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vices Tax Act, 2017?
* If so, is differential levy of tax permissible?
* To what reliefs, if any, are the parties entitled to?
First issue – Lottery – an actionable claim?
The High Court analyzed the various provisions of the Act for the term 'goods'. It also analyzed the various judgments of Supreme Court. In 'H Anraj v. State of Tamil Nadu' – 1985 (10) TMI 258 – Supreme Court, it was held that lottery tickets to the extent that they comprise the entitlement to participate in the draw are 'goods' falling within the definition of 'goods' as given in Tamilnadu General Sales Tax Act, 1954 and Bengal Finance (Sales Tax) Act, 1941. Independent of the two state Acts under consideration therein, it has held that, a trade of a lottery ticket confers on the purchaser two rights.
The High Court observed that a sale of a lottery ticket confers on the purchaser thereof two rights-
* a right to participate in the draw; and
* a right to claim a prize contingent upon his being successfu

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cond issue – levy of GST on lotteries
In tune with the constitutional amendments incorporated, Central Goods and Services Tax Act, 2017, Integrated Goods and Services Tax Act, 2017 and the respective State Goods and Services Tax Act, 2017 were enacted. The High Court analyzed the provisions of CGST Act regarding 'goods' , 'actionable claims', 'reverse charge', 'scope of supply', 'levy and collection' which have also been found the State Goods and Services Tax Act. It regulates the levy and collection of tax on intra-State supply of goods or services or both in the State of West Bengal. Legislature enjoys very wide latitude in classification for taxation.
Legislation or a provision contained in a statute can be invalidated on two grounds, namely,
* it is not within the competence of the legislature which passed the law; and/or
* it is in contravention of any of the fundamental rights stipulated in Part III of the Constitution or any other right/provision of the Constitution of I

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teries are kept out of the purview of 'actionable claims' which do not attract the CGST Act, 2017, lottery can therefore be charged to tax under the CGST Act, 2017. On the parity of the same reasoning, lottery is chargeable to tax under WB GST Act, 2017 also.
The High Court therefore held that lottery can be taxed under the CGST Act, 2017 and WB GST Act, 2017.
Third issue – levy of different taxes on lottery
The rationale for imposing differential rates appears from the minutes of the 17th meeting of the GST Council. The rationale for the differential rate or the rates by themselves has not been substantiated to be breach of any provision of the Constitution. The State Government cannot challenge its own notification as unconstitutional as, it has the wherewithal to set the wrong, right. In the present case, the States of Sikkim, Mizoram, Nagaland and Arunachal Pradesh have supported the writ petitioner on the score that the rates of taxes are discriminatory. Such States were prese

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Whether ITC for FY 2017-18 can be availed only till October 20, 2018

Whether ITC for FY 2017-18 can be availed only till October 20, 2018
By: – Bimal jain
Goods and Services Tax – GST
Dated:- 22-10-2018

Considering the first year of implementation of GST, major challenge is being faced by the Industry Inc in availing GST input tax credit (“ITC”) for the financial year 2017-18 after implementation of GST (i.e. July 2017 to March 2018) and lot of divergent views are floating with respect to the last date till which such ITC can be availed.
Amongst others, most prominent apprehension is that the ITC for the period July 2017 to March 2018, can be claimed on or before due date of filing of the return in Form GSTR-3B for the month of September 2018, which is October 20, 2018. This view is engendered in the light of provisions of Section 16(4) of the CGST Act, 2017 (“the CGST Act”), which draws a time limit to avail ITC for a financial year as the earliest of due date of furnishing return under Section 39 for the month of September following t

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f furnishing of the return under section 39 for the month of September following the end of financial year to which such invoice or invoice relating to such debit note pertains or furnishing of the relevant annual return, whichever is earlier”.
Section 39 of the CGST Act, deals with the monthly return to be filed electronically, for every calendar month or part thereof, in such form and manner as may be prescribed, of inward and outward supplies of goods or services, ITC availed, tax payable, tax paid and other prescribed particulars, on or before the 20th day of the month succeeding such calendar month or part thereof.
In this regard, Rule 61(1) of the CGST Rules, 2017 (“the CGST Rules”), prescribes Form GSTR-3 as the return to be furnished under Section 39(1) of the CGST Act.
Further, Rule 61(5) provides that where the time limit for furnishing of details in Form GSTR-1 under Section 37 and in FORM GSTR-2 under Section 38 has been extended and the circumstances so warrant, the Com

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claim of ITC shall also be extended accordingly.
Analyses on last date to avail ITC:
In view of the above discussed provisions, following views are possible in the context of last date to avail ITC for the period from July 2017 to March 2018:
* ITC for FY 2017-18 can be availed till the date of furnishing Annual return (i.e. December 31, 2018) – Section 16(4) of the CGST Act talks about the return filed under Section 39, which is Form GSTR-3 as per Rule 61(1) of the CGST Rules. Hence, Form GSTR-3B cannot be assumed to be a substitution for Form GSTR-3. Though, Rule 61(5) as amended provides that where the time limit for furnishing details in Form GSTR-1 and Form GSTR-2 has been extended, the Commissioner may specify the manner and condition subject to which the return shall be furnished through Form GSTR-3B.
Therefore, the last date for availing ITC of any invoice/debit note for a financial year 2017-18, would be the earlier of the due dates for filing the GSTR-3 for September 2

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gregate turnover up to ₹ 1.5 crores, for the quarters from July, 2017 to September, 2018, till October 31, 2018.
Further, vide Notifications No. 45 to 47/2018 – Central Tax dated September 10, 2018, due date of GSTR-1 and GSTR-3B for taxpayers who are migrating to GST as per procedure specified in Notification No. 31/2018 – Central tax dated August 6, 2018 was extended till December 31, 2018 for the period July 2017 to November 2018.
Going by the provisions of first proviso to Rule 69 of the CGST Rules, a view may be taken to state that since the time limit for furnishing Form GSTR-1 has been extended till October 31, 2018 for July 2017 to September 2018, while Form GSTR-2 remains suspended, the date of matching relating to claim of ITC shall also be extended accordingly till October 31, 2018 for all regular taxable persons and till December 31, 2018 in case of recently migrated taxpayers as per procedure specified in Notification No. 31/2018 – Central tax dated August 6, 2018.

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er 2018 but entry passed in books in the month of October 2018 due to closure of books for the month of September – Continuing with the above liberal interpretation of Section 16(4) of the CGST Act, one may consciously defer to file GSTR-3B for September till October 31, 2018, but it may happen that books of the Company for FY 2017-18 is closed by 30th September, 2018 and accordingly, any such entry booked in the month of October 2018, while ITC as per GSTR-3B will be reflected in the month of September, 2018. In such cases, there will be a reconciliation issue while filing Annual Return in Form GSTR-9 and GST Audit Report in Form GSTR-9C, in addition to late fees and interest as discussed supra.
Suitable clarification required from the CBIC to clear the mist:
It is highly important that the Government should come out with suitable clarification on last date till when the ITC for July 2017 to March 2018 can be availed. Apart from considering the legal jigsaw of multiple provisions un

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Extension of due date to 25th October, 2018 for furnishing return in the FORM GSTR-3B for the month of September, 2018

Extension of due date to 25th October, 2018 for furnishing return in the FORM GSTR-3B for the month of September, 2018
GST
Dated:- 22-10-2018

It has been brought to notice that there have been apprehensions by trade and industry relating to the last date for availment of ITC for the period July, 2017 to March, 2018. In order to remove doubts, it was clarified that as per the law, the last date for availing ITC in relation to the period from July, 2017 to March, 2018 is the last date for the filing of return in the FORM GSTR-3B for the month of September, 2018.
In view of the said apprehensions and with a view to give some more time to the trade and industry, the last date for furnishing return in the FORM GSTR-3B for the mont

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Applicant Eligible for Full Input Tax Credit on Taxable Services in Road Construction Under CGST Act Section 16(1.

Applicant Eligible for Full Input Tax Credit on Taxable Services in Road Construction Under CGST Act Section 16(1.
Case-Laws
GST
Input Tax Credit – The applicant is rendering taxable services

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GST Applicability on Washed Away or Cancelled Contracts: Taxable or Not? Insights on Forward Contract Obligations.

GST Applicability on Washed Away or Cancelled Contracts: Taxable or Not? Insights on Forward Contract Obligations.
Case-Laws
GST
Levy of GST – charges received on account of washed away / cancelled contracts for supply of goods – Forward Contracts – agreeing to the obligation to refrain from an act, agreeing to the obligation to tolerate an act or a situation, or agreeing to the obligation to do an act – Taxable in one situation and not taxable in other situations.
TMI Updates – Hig

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Pollution Under Control Certificates for vehicles taxed under residual entry, not SAC 9991, with 18% GST rate.

Pollution Under Control Certificates for vehicles taxed under residual entry, not SAC 9991, with 18% GST rate.
Case-Laws
GST
Levy of GST – services of Pollution Testing of Vehicles – The Acti

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Advance Payment for Villa Sale Taxed at 12% Under GST Act Before Completion Certificate Issuance.

Advance Payment for Villa Sale Taxed at 12% Under GST Act Before Completion Certificate Issuance.
Case-Laws
GST
Liability of tax – The applicant has received advance towards sale of villa pri

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GST Exemption on Charges for Cold Storage of Fresh Poultry Eggs from Animal Rearing or Poultry Farming.

GST Exemption on Charges for Cold Storage of Fresh Poultry Eggs from Animal Rearing or Poultry Farming.
Case-Laws
GST
Levy of GST – cold storage services for poultry eggs – The charges receiv

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Partners' Share Activity Classified as Service Supply Under CGST and TGST Act, 2017.

Partners' Share Activity Classified as Service Supply Under CGST and TGST Act, 2017.
Case-Laws
GST
Supply or not? – The activity undertaken with respect to the share belonging to the partners

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Goods Detained Over Invalid E-Way Bill; Release Possible with Bond After Part-B Upload Fails to Correct Issue.

Goods Detained Over Invalid E-Way Bill; Release Possible with Bond After Part-B Upload Fails to Correct Issue.
Case-Laws
GST
Detained of goods – invalid e-way bill – subsequent uploading of t

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Exempts a person making inter-State taxable supplies of handicraft goods from the requirement to obtain registration – But e-way bill will be required.

Exempts a person making inter-State taxable supplies of handicraft goods from the requirement to obtain registration – But e-way bill will be required.
3/2018 Dated:- 22-10-2018 Integrated GST (IGST)
GST
IGST
IGST
Government of India
Ministry of Finance
Department of Revenue
Central Board of Indirect Taxes and Customs
Notification No. 3/2018 – Integrated Tax
New Delhi, the 22nd October, 2018
G.S.R. 1052 (E).-In exercise of the powers conferred by section 20 of the Integrated Goods and Services Tax Act, 2017 (13 of 2017) read with sub-section (2) of section 23 of the Central Goods and Services Tax Act, 2017 (12 of 2017) , hereinafter referred to as the “said Act”, the Central Government, on the recommendations of the Cou

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the 26th July, 2018, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i) vide number G.S.R. 695 (E), dated the 26th July, 2018 and falling under the Chapter, Heading, Sub-heading or Tariff item specified in column (2) of the Table contained in the said notification and the Description specified in the corresponding entry in column (3) of the Table contained in the said notification; or
(ii) such persons making inter-State taxable supplies of the products mentioned in column (2) of the Table below and the Harmonised System of Nomenclature (HSN) code mentioned in the corresponding entry in column (3) of the said Table, when made by the craftsmen predominantly by hand even though some machinery may also be us

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14.
Theatre costumes
61, 62, 63
15.
Coir products (including mats, mattresses)
5705, 9404
16.
Leather footwear
6403, 6405
17.
Carved stone products (including statues, statuettes, figures of animals, writing sets, ashtray, candle stand)
6802
18.
Stones inlay work
68
19.
Pottery and clay products, including terracotta
6901, 6909, 6911, 6912, 6913, 6914
20.
Metal table and kitchen ware (copper, brass ware)
7418
21.
Metal statues, images/statues vases, urns and crosses of the type used for decoration of metals of Chapters 73 and 74
8306
22.
Metal bidriware
8306
23.
Musical instruments
92
24.
Horn and bone products
96
25.
Conch shell crafts
96
26.
Bamboo furniture, cane/Rattan furniture
94
27.
Dolls and t

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