Author: admin_gst

Bhom Singh S/o Shri Sardar Singh, Versus Union Of India The Commissioner, State Goods And Services Tax, Commercial Taxes Jaipur
GST
2018 (11) TMI 1501 – RAJASTHAN HIGH COURT – TMI
RAJASTHAN HIGH COURT – HC
Dated:- 1-10-2018
S. B. Civil Writ No. 15233/2018
GST
MR. SANGEET LODHA J.
For Petitioner(s) : Mr. Niraj Kumar Jain.
For Respondent(s) : Mr. Anil Bhansali.
Order
Heard.
This writ petition is directed against the order dated 25.09.2018 passed by the adjudicating autho

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GST Refund on zero rated supplies
Query (Issue) Started By: – Ankit Gangrade Dated:- 29-9-2018 Last Reply Date:- 11-10-2018 Goods and Services Tax – GST
Got 9 Replies
GST
While claimng "Refund of unutilised input tax credit on zero rated supplies",
Can we take refund of input tax credit on those input services which are capitalised with the value of capital goods in books of accounts?
Reply By Yash Jain:
The Reply:
Dear Sir,
Yes, we can take input for those input services which have been capitalized in the books of account, only with condition that the “Input” Should not have been capitalized.
Reason : When we fill Form GSTR 3B, the refund amount in RFD-01 is autopopulated from the said form. Hence yes, ITC can be applied for refund, only if the said input is not capitalized.
Comments from esteemed members highly solicited
Reply By Ankit Gangrade:
The Reply:
As per my opinion, Refund of unutilised ITC on same input services not available because this ser

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ational that Capital Goods Credit cannot be asked for refund, then it will be deemed that ITC on Capital goods also , cannot be utilized for discharge for GST Liability for Domestic sales, and hence should lapse.
Hence considering aforesaid, we can easily take ITC Refund for Capital Goods.
Comments from esteemed members highly solicited.
Reply By Nitika Aggarwal:
The Reply:
Dear Sir,
In my humble opinion, keeping in view the provisions of section 54 of CGST Act, 2017 read with rule 89 of CGST Rules, 2017, refund can be claimed only in respect of input and input services which are used for making such zero-rated supplies of goods or services or both but not in respect of capital goods.
Regards
Nitika Aggarwal
9999804960
Reply By Yash Jain:
The Reply:
Dear Sir/Madam,
Reproducing herewith the Rule 89 (Relevant Clauses Only – as such) and as under,
89(3) Where the application relates to refund of input tax credit, the electronic credit ledger shall be debited by the applicant b

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ns the value of zero-rated supply of goods made during the relevant period without payment of tax under bond or letter of undertaking;
Hence were it is categorically stated that Input is only in respect of Input other than capital Goods?.
Then what will happen to input of capital Goods as the full CGST Act does not impose any restrictions.
Comments from other members highly solicited.
Reply By Pavan Mahulkar:
The Reply:
Dear Yash Jain Sir,
We can't presume Inputs as Capital Asset
Please refer definition of INPUT as per section 2 of CGST Act
(59) “input” means any goods other than capital goods used or intended to be used by a supplier in the course or furtherance of business;
Reply By Nitika Aggarwal:
The Reply:
I have the same view as inscripted by Mr. Pavan Mahulkar.
The Government is going to give benefit only in respect of those input and input services which are used in the course or furtherance of Zero-rated supply not other than that.
Nitika Aggarwal
9999804960

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Printed Exam Papers for Govt Schools Classified as Service, Not Goods; Exempt from GST as Pure Service Provision.
Case-Laws
GST
Classification of Supply – supply of goods or services – Levy of GST – Supply of printed question papers for various examinations conducted by the Government/Government aided Educational Boards/ Councils/Universities etc – Cannot be held as supply of goods – Exempted as providing pure service to the the government.
TMI Updates – Highlights, quick notes, mar

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No Input Tax Credit for Stock Transfers with Zero Invoice Value Across State Branches.
Case-Laws
GST
Input Tax Credit – stock transfer from the Head Office to its branches in other States at

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Court Orders Release of Seized Goods and Vehicle Due to E-Way Bill Error; Authorities Dismiss Human Error Claim.
Case-Laws
GST
Release of seized goods with vehicle – incorrect E-way bill – Surprisingly, neither the mobile squad authority nor the appellate authority appreciated the claim of the petitioner that it is due to mistake or human error the vehicle number (particularly last two digits) are mentioned different which in the instant case are 83 in place of 38. – it is nothing but a

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VAT Assessments Under GST Scrutiny: Legal Questions Arise Post-Constitution Amendment with Article 246A. Notices Issued.
Case-Laws
VAT and Sales Tax
Validity of VAT assessment after introduct

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Restaurant Service Not Profiteering: Price Hike Due to Input Tax Credit Denial u/s 171 of CGST Act, 2017.
Case-Laws
GST
Anti-Profiteering – benefit of reduction in the rate of GST in restaurant service – purchase of 6 Hara Bhara Kabab Sub – base price of the product increased from ₹ 130/- to ₹ 145/- when the GST was reduced from 18% to 5% – Section 171 of CGST Act, 2017. – Due to denial of ITC, the cost of the product increased – It is not a case of profiteering.
TMI Upd

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Frequently Asked Questions on TCS under GST
GST
Dated:- 29-9-2018

Frequently Asked Questions on TCS
Sr. no.
Question
Answer
1.
What is Electronic Commerce?
As per Section 2(44) of the CGST Act, 2017, electronic Commerce means the supply of goods or services or both, including digital products over digital or electronic network.
2.
Who is an e-commerce operator?
As per Section 2(45) of the CGST Act, 2017, electronic Commerce operator means any person who owns, operates or manages digital or electronic facility or platform for electronic commerce.
3.
What is Tax Collection at Source (TCS)?
As per Section 52 of the CGST Act, 2017 the e-commerce operator, not being an agent, is required to collect an amount calculated at the rate not exceeding one per cent., as notified by the Government on the recommendations of the Council, of the net value of taxable supplies made through it, where the consideration with respect to such supplies is to be collected by suc

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ly required to register irrespective of the value of supply made by him. However, a person supplying services, other than supplier of services under section 9 (5) of the CGST Act, 2017, through an e-commerce platform are exempted from obtaining compulsory registration provided their aggregate turnover does not exceed INR 20 lakhs (or INR 10 lakhs in case of specified special category States) in a financial year. Government has issued the notification No. 65/2017 – Central Tax dated 15th November, 2017 in this regard.
7.
Whether e-Commerce operator is required to obtain registration in every State/UT in which suppliers listed on their e-commerce platform are located to undertake the necessary compliance as mandated under the law?
As per the extant law, registration for TCS would be required in each State / UT as the obligation for collecting TCS would be there for every intra-State or inter-State supply. In order to facilitate the obtaining of registration in each State / UT, the e-c

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n for TCS as well?
E-Commerce operator has to obtain separate registration for TCS irrespective of the fact whether e-Commerce operator is already registered under GST as a supplier or otherwise and has GSTIN.
10.
What is meant by “net value of taxable supplies”?
The “net value of taxable supplies” means the aggregate value of taxable supplies of goods or services or both, other than the services on which entire tax is payable by the e-commerce operator, made during any month by a registered supplier through such operator reduced by the aggregate value of taxable supplies returned to such supplier during the said month.
11.
Whether value of net taxable supplies to be calculated at gross level or at GSTIN level?
The value of net taxable supplies is calculated at GSTIN level.
12.
Is every e-commerce operator required to collect tax on behalf of actual supplier?
Yes, every e-commerce operator is required to collect tax where the supplier is supplying goods or services throug

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es on which the recipient is required to pay tax on reverse charge basis.
16.
Whether TCS is to be collected in respect of supplies made by the composition taxpayer?
As per section 10(2)(d) of the CGST Act, 2017, a composition taxpayer cannot make supplies through e-commerce operator. Thus, question of collecting TCS in respect of supplies made by the composition taxpayer does not arise.
17.
Whether TCS is to be collected on import of goods or services or both?
TCS is not liable to be collected on any supplies on which the recipient is required to pay tax on reverse charge basis. As far as import of goods is concerned since same would fall within the domain of Customs Act, 1962, it would be outside the purview of TCS. Thus, TCS is not liable to be collected on import of goods or services.
18.
Is there any exemption on Gold, owing to the fact that rate of GST is only 3% and TCS on it would erode the margin for the seller?
No such exemption from TCS has been granted.
19.
Wh

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n 52, e-commerce operator collects TCS at the net of returns. Sometimes sales return is more than sales and hence can negative amount be reported?
Negative amount cannot be declared. There will be no impact in next tax period also. In other words, if returns are more than the supplies made during any tax period, the same would be ignored in current as well as future tax period(s).
22.
What is the time within which such TCS is to be remitted by the e-commerce operator to the Government account?
The amount collected by the operator is to be paid to appropriate government within 10 days after the end of the month in which the said amount was so collected.
23.
How can actual suppliers claim credit of TCS?
The amount of TCS deposited by the operator with the appropriate Government will be reflected in the electronic cash ledger of the actual registered supplier (on whose account such collection has been made) on the basis of the statement filed by the operator in FORM GSTR-8 in te

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submit any statement? What are the details that are required to be submitted in the statement?
Yes, every operator is required to furnish a statement, electronically, containing the details of outward supplies of goods or services effected through it, including the supplies of goods or services returned through it, and the amount collected by it as TCS during a month within 10 days after the end of such month in FORM GSTR-8. The operator is also required to file an annual statement by 31st day of December following the end of the financial year in which the tax was collected in FORM GSTR-9B.
26.
Whether interest would be applicable on non-collection of TCS?
As per section 52(6) of the CGST Act, 2017, interest is applicable on omission as well in case of incorrect particulars noticed. In such a case, interest is applicable since it is a case of omission. Further penalty under section 122(vi) of the CGST Act, 2017 would also be leviable.
27.
What will be the place of supply for e

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Standard Operating Procedure on TDS under GST
GST
Dated:- 29-9-2018

PDF DOWNLOAD
=============
Document 1GST
NATION
TAX
MARKET
STANDARD OPERATING PROCEDURE
TDS
家
under GST
A ready reckoner for DDOS / other Deductors in GST
Law Committee
GST Council
28th September 2018
Contents
1. Introduction..
2. Relevant provisions of TDS in GST and effective date
2.1 Provisions of Law ……
4
………………
5
5
5
2.2 Effective date
………
2.3 Brief Diagrammatic representation of the TDS provisions in GST……………………………. 6
2.4 Concept of Supply in GST……….
3. When tax deduction is required to be made in GST………
3.1 Conditions for & amount of deduction
4. When tax deduction is not required to be made in GST……..
5. Illustrations of various situations requiring deduction of tax…….
…
7
8
8
9
11
6. Valuation of supply for deduction of TDS and applicable rates with
illustrations…….
6.1 Rate of dedu

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…..
22
23
24
24
10.1 TDS return submission procedure……..
10.2 Time limit for filing the TDS Returns under GST …….
24
11.
Benefit of TDS to deductee and TDS certificate………
12.
Late fee, interest and penalty..
13.
14.
Legal References…….
Frequently asked questions (FAQs)………
3
25
…….
25
26
27
1. Introduction:
The concept of Tax Deduction at Source (TDS) was there in the
erstwhile VAT Laws. GST Law also mandates Tax Deduction at Source
(TDS) vide Section 51 of the CGST/SGST Act 2017, Section 20 of the
IGST Act, 2017 and Section 21 of the UTGST Act, 2017. GST Council in
its 28th meeting held on 21.07.2018 recommended the introduction of
TDS from 01.10.2018.
Following would be the deductors of tax in GST under section 51 of the
CGST Act, 2017 read with notification No. 33/2017-Central Tax dated
15.09.2017:
(a) a department or establishment of the Central Government or
State Government; or
(b) local authority; or
(c) Governmental agencies; or
(d) an authority

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after referred to as 'the deductee') at a prescribed rate.
2.2 Effective date:
Notification No. 33/2017 – Central Tax dated 15.09.2017 was issued
by the CBIC to enable registration of tax deductors. However,
Government suspended the applicability of TDS till 30.09.2018.
Now, it has been decided that the TDS provision would be made
operative with effect from 01.10.2018. Notification No. 50/2018-
Central Tax dated 13.09.2018 has already been issued in this regard by
CBIC. Similar notifications have been issued by respective State
Governments.
5
2.3 Brief Diagrammatic presentation of the TDS provisions in GST:
Deductor is required to
take registration
[Sec 24(vi)]
Registration to be done through the common
portal www.gst.gov.in by using PAN/TAN
Enters into
Contract for
of
purchase
taxable goods
/ services or
both with any
supplier
Total Value of taxable supply under
a contract (excluding GST) >Rs.2.5L
→ Deduct tax from payment
Total Value of taxable supply under a
contract (excludi

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legislature B, it is
an inter-State supply and TDS @ 2% under IGST Act is to be
deducted if the deductor is registered in State A.
f. When advance is paid to a supplier on or after 01.10.2018 to a
supplier for supply of taxable goods or services or both.
4. When tax deduction is not required to be made under
GST:
Tax deduction is not required in following situations:
a) Total value of taxable supply ≤ Rs. 2.5 Lakh under a contract.
b) Contract value > Rs. 2.5 Lakh for both taxable supply and
exempted supply, but the value of taxable supply under the said
contract ≤ Rs. 2.5 Lakh.
c) Receipt of services which are exempted. For example services
9
exempted under notification No. 12/2017 – Central Tax (Rate)
dated 28.06.2017 as amended from time to time.
d) Receipt of goods which are exempted. For example goods
exempted under notification No. 2/2017 – Central Tax (Rate) dated
28.06.2017 as amended from time to time.
e) Goods on which GST is not leviable. For example petrol, dies

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nregistered supplier.
m) Where the payment relates to “Cess” component.
10
5. Illustrations of various situations requiring deduction
of tax:
Situations / Contracts
Deduction
required
Remarks
YES/NO
Finance Department is making a
payment of Rs.3 Lakh to a supplier
of 'printing & stationery'.
Education Department is making
payment of Rs.5 Lakh to a supplier
of 'printed books and printed or
illustrated post cards' where
payment for books is Rs.2 Lakh and
Rs.3 Lakh is for other printed or
illustrated post cards.
Finance Department, is making
payment of Rs.1.5 Lakh to a supplier
of 'car rental service'.
Yes
Yes, deduction
is required in
respect of
payment of Rs.
3 Lakh only i.e.
for payment in
respect of
taxable supply.
See Remarks
Where the total contract
value of taxable supply is
more than Rs.2.5 Lakh
deduction is mandatory.
Books are exempted goods;
no deduction is required in
respect of supply of books.
However, payment involving
'printed or illustrated post
cards' is for supply of ta

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tor has made payment or credited the amount to the supplier's account.
Q44 What are the modes of signing FORM GSTR-7?
A. FORM GSTR-7 can be filed using DSC or EVC.
Q45 Can I preview the FORM GSTR-7 before filing?
A. Yes, the preview of FORM GSTR-7 can be seen by clicking on ‘Preview Draft GSTR-7' before
filing on the GST Portal.
Q46 What happens after FORM GSTR-7 is filed?
A. After FORM GSTR-7 is filed:
•
ARN is generated on successful filing of the return in FORM GSTR-7.
An SMS and an email are sent to the applicant on his registered mobile and email id.
Q47 Can I file the complete FORM GSTR-7 using Offline Utility?
A. No. Filing can take place only online on the GST Portal.
The details of Table 3 and Table 4 can be prepared offline but remaining activities like
payment and filing has to be completed on the portal only.
Once the json file is uploaded on the GST Portal, one may continue to proceed to file.
Liabilities will then be computed and after making payment, return c

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o GST Portal to download the FORM GSTR-7 Offline Utility?
A. No. One can download the FORM GSTR-7 Offline Utility under 'Download' section
without logging in to the GST Portal.
Q51
A.
Q52
Do I need to login to GST Portal to upload the generated JSON file using FORM
GSTR-7 Offline Utility?
Yes. You must login in to the GST Portal to upload the generated JSON file using FORM
GSTR-7 Offline Utility.
What are the basic system requirements/ configurations required to use FORM
GSTR-7 Offline Tool?
A. The offline functions work best on Windows 7 and above and MS EXCEL 2007 and above.
Q53 Is Offline utility mobile compatible?
A. As of now FORM GSTR-7 Offline utility cannot be used on mobile. It can only be used on
desktop/laptops.
Q54 How many TDS details of the suppliers can I enter in the offline utility?
A. One can enter maximum 10,000 rows of TDS details of the suppliers in the offline utility.
I am a tax deductor. I've made payment for four different products to one of my
Q55 suppliers. S

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e utility?
A. No, any negative value cannot be entered in the utility. However, decimal values can be
entered. All decimal values would be rounded off to two decimal places. But, total liability
will be rounded off to whole number.
Q58
I've uploaded GSTR-7 JSON File and it was processed without error. Do I need to
download the generated file?
A. No, it is not necessary to download the GSTR-7 JSON File processed without error. One can
download it only if he wants to update, add or delete the details added previously. One can
download the uploaded file for record if so required.
Q59
Interest, Penalty & Late Fee
Mr A, a DDO has submitted return for the month of November upon payment of
liability as shown in such return on 11.12.2018. Is he liable to pay interest?
A. Mr. A has to pay interest for one day as return is to be filed by 10 th December, 2018.
Q60
Mr X has deducted Rs 1 lakh of TDS in Nov'18. He deposits Rs 70,000/- on
10.12.2018 & the rest of Rs 30,000 on 30.01.2019. He submits

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aid sub-section, or where he fails to pay to
the Government under sub-section (2) of section 51 [section 122(v) refers]. He is liable
to penalty of Rs.1,00,000/-.
36
36
TDS Certificate &Benefit of TDS to the deductee
As a DDO I have deducted tax while making payment to various Vendors. I have
Q61 deposited the amount in the appropriate Government A/c & also filed return
within stipulated time. Have I discharged all my liabilities relating to TDS?
A. No. A system generated TDS certificate in FORM GSTR-7A mentioning therein the value on
which tax is deducted, and amount of tax deducted and other related particulars shall be
available for download from the portal by deductee.
Q62 How can a supplier download the TDS certificate in FORM GSTR 7A?
A. TDS certificate can be downloaded by access the www.gst.gov.in URL and using the
following path: Login to the GST Portal with valid credentials. Navigate to Services > User
Services > View/Download Certificates option.
Q63 How many TDS Certificat

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GST on freight Charges by GTA
Query (Issue) Started By: – ROHIT GOEL Dated:- 29-9-2018 Last Reply Date:- 30-10-2018 Goods and Services Tax – GST
Got 5 Replies
GST
One of our client is engaged in providing GTA services to companies on which GST has been paid by such companies under reverse charge mechanism.
Our client is taking truck services from other transporters and paying freight to such transporters but no reverse charge has been paid on such amount as input of GST is not available to the client.
Is it the correct view or we have to deposit GST on amount of freight paid…
Reply By Sanjeev Arora:
The Reply:
जी सर
Reply By SHIVKUMAR SHARMA:
The Reply:
Yes,Your Client has to pay GST on Freight

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Constitution of Group of Ministers (GoM) to examine the Modalities for Revenue Mobilisation in case of Natural Calamities and Disasters
GST
Dated:- 29-9-2018

During the 30th Meeting of the GST Council held here yesterday, the proposal of the State of Kerala for imposition of Cess on SGST for rehabilitation and flood affected works was discussed in detail. The Council decided to constitute a 7-Member Group of Ministers (GoM) to examine this issue in depth. Accordingly, the Union Fin

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NO GST ON CONTRACTUAL LIQUOR BOTTLING (PART-2)
By: – Dr. Sanjiv Agarwal
Goods and Services Tax – GST
Dated:- 29-9-2018

Recent Advance Ruling on Taxability under GST
The issue of whether:
* Whether beer bearing brand/s owned by M/s United Breweries Limited (Brand Owner/UBL) manufactured by Contract Brewing Units (CBUs) out of the raw materials, packaging materials and other input materials procured by it and accounted by it and thereafter selling such beer to various parties under its invoicing would be considered as supply of services and whether GST is payable by the CBUs on the profit earned out of such manufacturing activity? and
Whether GST is payable by the Brand owner on the "Surplus Profit" transferred by the CBU to the Brand Owner out of such manufacturing activity?
recently came up before Authority for Advance Rulings, Karnataka on the application of M/s United Breweries Ltd. [ 2018 (7) TMI 835 – AUTHORITY FOR ADVANCE RULINGS, KARNATAKA ].
Acc

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s follows. The statutory levies and taxes are paid by the CBUs. Besides this the CBUs retain the manufacturing cost, the manufacturing and distribution overheads and its portion of net profit. The balance of the sale proceeds, after the CBUs have apportioned part of the proceeds as enumerated above to themselves, is transferred to UBL as surplus/profit earned by the brand owner.
The contract manufacturing arrangement empowers the CBUs to use the brand name of UBL for the limited purpose of facilitating manufacture of UBL owned brands of beer by the CBUs and this usage is in accordance with Section 48(2) of Trademark Act.
The scheme of the agreements provides that UBL would provide the technical knowhow to the breweries, including close supervision of procuring and manufacturing processes, and the breweries in turn would endeavour to manufacture beer of the requisite standards and sell the same as regulated by the State laws.
The revenue sharing agreement stipulates that apart from t

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sale of the goods, pay the statutory levies and taxes. The CBUs further account for the manufacturing cost and distribution overheads in their books of account as they had procured all the resources for the manufacture of the beer. Further they also retain a certain amount of profit. After accounting all these revenues the CBUs transfer the balance amount to the applicant.
The point to be determined here is whether the CBUs are supplying any service to the applicant by undertaking to manufacture beer according to their specifications thereby rendering them liable to pay GST on the profit earned by them by virtue of supply of service to the applicant.
The CBUs undertake the manufacture of goods for or on behalf of the applicant, apparently in the nature of a job work. 'Job work' is defined under Section 2 (68) of the CGST Act, 2017 and Section 2(68) of the KSGST Act, 2017 as follows:
Job work means any treatment or process undertaken by a person on goods belonging to another

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all the services have been divided into various Sections and further into headings. Services related to manufacture appear in Section 8 under Heading 9988. The Notification No. 11/2017-Central Tax (Rate) dated 28.06.2017 at serial number 26, also requires that Heading 9988 is applicable when the physical inputs are owned by person other than the manufacturer. Further Heading 9989 also provides for classification of other manufacturing services apart from those under Heading 9988. There are four groups of services under heading 9989, ranging from group 99891 to 99894. The manufacturing activity undertaken by the CBUs does not appear in any of the services listed in the aforesaid groups from 99891 to 99894.
It was evident that the manufacturing activity carried out by the CBUs does not fall under the Heading 9989. In order that a manufacturing activity be covered under Heading 9988, it is necessary that the goods worked upon should be supplied by a registered person to the manufacturer.

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ost. Any finished goods in stock would also be purchased by the applicant at ex-factory price. All these clauses indicate that the ownership of the raw material required to manufacture beer rests with the manufacturer and not with the applicant. Therefore, the applicant had not supplied any goods used in the manufacturing activity undertaken by the CBUs. Consequently, the manufacturing activity undertaken by the CBUs does not qualify classification under Heading 9988. As a result the CBUs are not engaged in supply of any service to the applicant.
In view of this factual matrix, AAR concluded that the CBUs are not engaged in supply of service to the applicant and therefore there does not arise any liability to pay GST on the amount retained by the CBUs as their profit.
On the question of taxing on the surplus profit transferred by the CBU to the brand owner arising out of manufacturing activity, it was observed that the applicant enters into a business agreement with the CBUs in the n

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le it has to be placed in the residual entry. The applicable rate of Central Tax is as at serial number 35 of the Notification.
It was ruled that GST is payable by the Brand owner (UBL) on 'Surplus Profit' transferred by the CBU to brand owner out of the manufacturing activity and the supply of service to the CBUs is classified under Service Code (Tariff) 999799 and liable to pay GST at 18% ( CGST-9%, SGST-9%) on the amount received from the CBUs.
Reply By Prasanna Kumar as =
The issues were dealt by you in your article NO GST ON CONTRACTUAL LIQUOR BOTTLING (PART-1).Since the manufacturing of beer doesnot fit into the definition of Job work under GST laws, the authorities cannot levy GST on this activity.
Ruling
It was ruled that since the applicant is engaged in supply of service and the service does not find mention at any other entry in the Classification table it has to be placed in the residual entry. The applicable rate of Central Tax is as at serial number 35 of the N

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The Himachal Pradesh Goods and Services Tax (Eleventh Amendment) Rules, 2018.
21/2018-State Tax Dated:- 29-9-2018 Himachal Pradesh SGST
GST – States
Himachal Pradesh SGST
Himachal Pradesh SGST
Government of Himachal Pradesh
Excise and Taxation Department
No.EXN-F(10)-28/2018 Dated: Shimla-2 29th September, 2018
Notification No. 21/2018-State Tax
In exercise of the powers conferred by section 164 of the Himachal Pradesh Goods and Services Tax Act, 2017 (10 of 2017), the Governor of Himachal Pradesh is pleased to make the following rules further to amend the Himachal Pradesh Goods and Services Tax Rules, 2017, namely:-
(1) These rules may be called the Himachal Pradesh Goods and Services Tax (Eleventh Amendment) Rules, 2018.
(2) Save as otherwise provided, they shall come into force with retrospective effect from 18th April, 2018.
2. In the Himachal Pradesh Goods and Services Tax Rules, 2017, –
(i) in rule 89, for sub-rule (5), the following shall be substituted, n

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he Fund:
Provided that an amount equivalent to fifty per cent. of the amount of integrated tax determined under sub-section (5) of section 54 of the Himachal Pradesh Goods and Services Tax Act, 2017, read with section 20 of the Integrated Goods and Services Tax Act, 2017, shall be deposited in the Fund.
Provided further that an amount equivalent to fifty per cent. of the amount of cess determined under sub-section (5) of section 54 read with section 11 of the Goods and Services Tax (Compensation to States) Act, 2017 (15 of 2017), shall be deposited in the Fund.
(2) Where any amount, having been credited to the Fund, is ordered or directed to be paid to any claimant by the proper officer, appellate authority or court, the same shall be paid from the Fund.
(3) Accounts of the Fund maintained by the Central Government shall be subject to audit by the Comptroller and Auditor General of India.
(4) The Government shall, by an order, constitute a Standing Committee (hereinafter referred

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ttended by a minimum of three other members.
(6) The Committee shall have powers –
(a) to require any applicant to get registered with any authority as the Central Government may specify;
(b) to require any applicant to produce before it, or before a duly authorized officer of the Central Government or the State Government, as the case may be, such books, accounts, documents, instruments, or commodities in custody and control of the applicant, as may be necessary for proper evaluation of the application;
(c) to require any applicant to allow entry and inspection of any premises, from which activities claimed to be for the welfare of consumers are stated to be carried on, to a duly authorised officer of the State Government, as the case may be;
(d) to get the accounts of the applicants audited, for ensuring proper utilisation of the grant;
(e) to require any applicant, in case of any default, or suppression of material information on his part, to refund in lump-sum along with

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management, and administration of the Fund.
(7) The Committee shall not consider an application, unless it has been inquired into, in material details and recommended for consideration accordingly, by the Member Secretary.
(8) The Committee shall make recommendations:-
(a) for making available grants to any applicant;
(b) for investment of the money available in the Fund;
(c) for making available grants (on selective basis) for reimbursing legal expenses incurred by a complainant, or class of complainants in a consumer dispute, after its final adjudication;
(d) for making available grants for any other purpose recommended by the Central Consumer Protection Council (as may be considered appropriate by the Committee);
(e) for making available up to 50% of the funds credited to the Fund each year, for publicity/ consumer awareness on GST, provided the availability of funds for consumer welfare activities of the Department of Consumer Affairs is not less than twenty five crore

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art of its curriculum for a minimum period of three years; and
(vi) a complainant as defined under clause (b) of sub-section (1) of section 2 of the Consumer Protection Act, 1986(68 of 1986), who applies for reimbursement of legal expenses incurred by him in a case instituted by him in a consumer dispute redressal agency.
(b) 'application' means an application in the form as specified by the Standing Committee from time to time;
(c) 'Central Consumer Protection Council' means the Central Consumer Protection Council, established under sub-section (1) of section 4 of the Consumer Protection Act, 1986 (68 of 1986), for promotion and protection of rights of consumers;
(d) 'Committee' means the Committee constituted under sub-rule (4);
(e) 'consumer' has the same meaning as assigned to it in clause (d) of sub-section (1) of section 2 of the Consumer Protection Act, 1986 (68 of 1986), and includes consumer of goods on which central tax has been paid;
(f

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inputs held in stock, inputs contained in semi-finished or finished goods held in stock, and capital goods/plant and machinery on which input tax credit is required to be reversed and paid back to Government
Sr.
GSTIN
Invoice/Bill of Entry
Description of inputs held in stock, inputs contained in semi-finished or finished goods held in stock and capital goods /plant and machinery
Unit Quantity Code (UQC)
Qty
Value (As adjusted by debit/credit note)
Input tax credit/Tax payable (whichever is higher) (Rs.)
No.
Date
Central tax
State/Union territory tax
Integrated tax
Cess
1
2
3
4
5
6
7
8
9
10
11
12
8 (a) Inputs held in stock (where invoice is available)
8 (b) Inputs contained in semi-finished or finished goods held in stock (where invoice is available)
8 (c) Capital goods/plant and machinery held in stock
8 (d) Inputs held in stock or inputs as contained in semi-finished /finished goods held in stock (where invoice is not available)
9. Amount of tax payable

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_______________________________________
Designation/Status ____________________________
Date – dd/mm/yyyy
Instructions:
1. This form is not required to be filed by taxpayers or persons who are registered as :-
(i) Input Service Distributors;
(ii) Persons paying tax under section 10;
(iii) Non-resident taxable person;
(iv) Persons required to deduct tax at source under section 51; and
(v) Persons required to collect tax at source under section 52.
2. Details of stock of inputs, inputs contained in semi-finished or finished goods and stock of capital goods/plant and machinery on which input tax credit has been availed.
3. Following points need to be taken care of while providing details of stock at Sl. No.8:
(i) where the tax invoices related to the inputs held in stock or inputs contained in semi-finished or finished goods held in stock are not available, the registered person shall estimate the amount under sub-rule (3) of rule 44 based on prevailing market price of the go

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Circular regarding Enforcement of TDS provision under GST
12-4/78-EXN-Tax-Part-(278/25)-29056 Dated:- 29-9-2018 Himachal Pradesh SGST
GST – States
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The Madhya Pradesh Goods and Services Tax Rules, (Amendment) 2017
F-A-3-33-2018-1-V-(88) Dated:- 29-9-2018 Madhya Pradesh SGST
GST – States
Madhya Pradesh SGST
Madhya Pradesh SGST
Commercial Tax Department
Mantralaya, Vallabh Bhawan, Bhopal
Bhopal, Dated 29th September, 2018
No. F.A-3-33-2018-1-V-(88).-In exercise of the powers conferred by section 164 of the Madhya Pradesh Goods and Services Tax Act, 2017 (19 of 2017), the State Government, hereby makes the following rules further to amend the Madhya Pradesh Goods and Services Tax Rules, 2017, namely:-
AMENDMENTS
1. In the Forms to the Madhya Pradesh Goods and Services Tax Rules, 2017, after FORM GSTR-9A, the following shall be inserted namely:-
“FORM GSTR-9C
See rule 80(3)
PART – A – Reconciliation Statement
Pt. I
Basic Details
1
Financial Year
2
GSTIN
3A
Legal Name
< Auto >
3B
Trade Name (if any)
4
Are you liable to audit under any Act? << Please specify >>
(Amount in ₹ in all tables)
Pt.

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not permissible under GST
(-)
K
Adjustments on account of supply of goods by SEZ units to DTA Units
(-)
L
Turnover for the period under composition scheme
(-)
M
Adjustments in turnover under section 15 and rules thereunder
(+/-)
N
Adjustments in turnover due to foreign exchange fluctuations
(+/-)
O
Adjustments in turnover due to reasons not listed above
(+/-)
P
Annual turnover after adjustments as above
< Auto >
Q
Turnover as declared in Annual Return (GSTR9)
R
Un-Reconciled turnover (Q – P)
AT1
6
Reasons for Un – Reconciled difference in Annual Gross Turnover
A
B
C
Reason 1
<< Text >>
Reason 2
<< Text >>
Reason 3
<< Text >>
7
Reconciliation of Taxable Turnover
A
Annual turnover after adjustments (from 5P above)
B
Value of Exempted, Nil Rated, Non-GST supplies, No-Supply turnover
C
D
E
F
Zero rated supplies without payment of tax
Supplies on which tax is to be paid by the recipient on reverse charge basis
Taxable turnover as per

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but not paid (due to reasons specified under Tables 6,8 and 10 above)
To be paid through Cash
Description
Taxable Value
Central tax
State tax/UT tax
Integrated tax
Cess, if applicable
1
2
3
4
5
6
5%
12%
18%
28%
3%
0.25%
0.10%
Interest
Late Fee
Penalty
Others (please specify)
Pt. IV
Reconciliation of Input Tax Credit (ITC)
12
Reconciliation of Net Input Tax Credit (ITC)
A
ITC availed as per audited Annual Financial Statement for the State/ UT (For multi-GSTIN units under same PAN this should be derived from books of accounts)
B
ITC booked in earlier Financial Years claimed in current Financial Year
(+)
C
ITC booked in current Financial Year to be claimed in subsequent Financial Years
(-)
D
ITC availed as per audited financial statements or books of account
< Auto >
E
ITC claimed in Annual Return (GSTR9)
F
Un-reconciled ITC
ITC 1
13
Reasons for un-reconciled difference in ITC
A
B
C
Reason 1
<< Text >>
Reason 2
<< Text >>

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

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e turnover as per the audited Annual Financial Statement shall be declared here. There may be cases where multiple GSTINs (State-wise) registrations exist on the same PAN. This is common for persons / entities with presence over multiple States. Such persons / entities, will have to internally derive their GSTIN-wise turnover and declare the same here. This shall include export turnover (if any). It may be noted that reference to audited Annual Financial Statement includes reference to books of accounts in case of persons / entities having presence over multiple States.
5B
Unbilled revenue which was recorded in the books of accounts on the basis of accrual system of accounting in the last financial year and was carried forward to the current financial year shall be declared here. In other words, when GST is payable during the financial year on such revenue (which was recognized earlier), the value of such revenue shall be declared here.
(For example, if rupees Ten Crores of unbilled

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G
Turnover included in the audited Annual Financial Statement for April 2017 to June 2017 shall be declared here.
5H
Unbilled revenue which was recorded in the books of accounts on the basis of accrual system of accounting during the current financial year but GST was not payable on such revenue in the same financial year shall be declared here.
5I
Value of all advances for which GST has not been paid but the same has been recognized as revenue in the audited Annual Financial Statement shall be declared here.
5J
Aggregate value of credit notes which have been accounted for in the audited Annual Financial Statement but were not admissible under section 34 of the CGST Act shall be declared here.
5K
Aggregate value of all goods supplied by SEZs to DTA units for which the DTA units have filed bill of entry shall be declared here.
5L
There may be cases where registered persons might have opted out of the composition scheme during the current financial year. Their turnover as per

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here.
5Q
Annual turnover as declared in the Annual Return (GSTR-9) shall be declared here. This turnover may be derived from Sr. No. 5N, 10 and 11 of Annual Return (GSTR-9).
6
Reasons for non-reconciliation between the annual turnover declared in the audited Annual Financial Statement and turnover as declared in the Annual Return (GSTR-9) shall be specified here.
7
The table provides for reconciliation of taxable turnover from the audited annual turnover after adjustments with the taxable turnover declared in annual return (GSTR-9).
7A
Annual turnover as derived in Table 5P above would be auto-populated here.
7B
Value of exempted, nil rated, non-GST and no-supply turnover shall be declared here. This shall be reported net of credit notes, debit notes and amendments if any.
7C
Value of zero rated supplies (including supplies to SEZs) on which tax is not paid shall be declared here. This shall be reported net of credit notes, debit notes and amendments if any.
7D
Value of

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onciliation statement and amount of tax paid as declared in Annual Return (GSTR 9). Under the head labelled “RC”, supplies where tax was paid on reverse charge basis by the recipient (i.e. the person for whom reconciliation statement has been prepared) shall be declared.
9P
The total amount to be paid as per liability declared in Table 9A to 9O is auto populated here.
9Q
The amount payable as declared in Table 9 of the Annual Return (GSTR9) shall be declared here. It should also contain any differential tax paid on Table 10 or 11 of the Annual Return (GSTR9).
10
Reasons for non-reconciliation between payable / liability declared in Table 9P above and the amount payable in Table 9Q shall be specified here.
11
Any amount which is payable due to reasons specified under Table 6, 8 and 10 above shall be declared here.
6. Part IV consists of reconciliation of Input Tax Credit (ITC). The instructions to fill Part IV are as under:-
Table No.
Instructions
12A
ITC availed (after rev

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ut the same has not been credited to the ITC ledger for the said financial year shall be declared here.
12D
ITC availed as per audited Annual Financial Statement or books of accounts as derived from values declared in Table 12A, 12B and 12C above will be auto-populated here.
12E
Net ITC available for utilization as declared in Table 7J of Annual Return (GSTR-9) shall be declared here.
13
Reasons for non-reconciliation of ITC as per audited Annual Financial Statement or books of account (Table 12D) and the net ITC (Table-12E) availed in the Annual Return (GSTR-9) shall be specified here.
14
This Table is for reconciliation of ITC declared in the Annual Return (GSTR-9) against the expenses booked in the audited Annual Financial Statement or books of account. The various sub-heads specified under this table are general expenses in the audited Annual Financial Statement or books of account on which ITC may or may not be available. Further, this is only an indicative list of heads u

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. Any refund which has been erroneously taken and shall be paid back to the Government shall also be declared in this table. Lastly, any other outstanding demands which is recommended to be settled by the auditor shall be declared in this Table.
8. Towards, the end of the reconciliation statement taxpayers shall be given an option to pay their taxes as recommended by the auditor.
PART – B- CERTIFICATION
I. Certification in cases where the reconciliation statement (FORM GSTR-9C) is drawn up by the person who had conducted the audit:
* I/we have examined the-
(a) balance sheet as on ………
(b) the *profit and loss account/income and expenditure account for the period beginning from ………..…to ending on ……., and
(c) the cash flow statement for the period beginning from ……..…to ending on ………, -attached herewith, of M/s. …………… (Name), ……

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, to the best of *my/our knowledge and belief, were necessary for the purpose of the audit/ information and explanations which, to the best of *my/our knowledge and belief, were necessary for the purpose of the audit were not provided/partially provided to us.
(B) In *my/our opinion, proper books of account *have/have not been kept by the registered person so far as appears from*my/ our examination of the books.
(C) I/we certify that the balance sheet, the *profit and loss/income and expenditure account and the cash flow Statement are *in agreement/not in agreement with the books of account maintained at the Principal place of business at ……………………and ** ……………………additional place of business within the State.
4. The documents required to be furnished under section 35 (5) of the CGST Act and Reconciliation Statement required to be furnished under section 44(2) of the CGST Act

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

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ts declared by the said Act to be part of, or annexed to, the *profit and loss account/income and expenditure account and balance sheet.
2. I/we report that the said registered person-
*has maintained the books of accounts, records and documents as required by the IGST/CGST/MPGST GST Act, 2017 and the rules/notifications made/issued thereunder
*has not maintained the following accounts/records/documents as required by the IGST/CGST/MPGST GST Act, 2017 and the rules/notifications made/issued thereunder:
1.
2.
3.
3. The documents required to be furnished under section 35 (5) of the CGST Act and Reconciliation Statement required to be furnished under section 44(2) of the CGST Act is annexed herewith in Form No.GSTR-9C.
4. In *my/our opinion and to the best of *my/our information and according to examination of books of account including other relevant documents and explanations given to *me/us, the particulars given in the said Form No.9C are true and correct subject to the follow

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The Madhya Pradesh Goods and Services Tax Rules, (Amendment) 2017,
F.A-3-31-2018-1-V-(84) Dated:- 29-9-2018 Madhya Pradesh SGST
GST – States
Madhya Pradesh SGST
Madhya Pradesh SGST
Commercial Tax Department
Mantralaya, Vallabh Bhawan, Bhopal
Bhopal, Dated 29th September, 2018
No. F.A-3-31-2018-1-V-(84).-In exercise of the powers conferred by section 164 of the Madhya Pradesh Goods and Services Tax Act, 2017 (19 of 2017), the State Government hereby makes the following rules further to amend the Madhya Pradesh Goods and Services Tax Rules, 2017, namely:-
AMENDMENTS
They shall come into force on the date of their publication in the Official Gazette.
2. In the Madhya Pradesh Goods and Services Tax Rules, 2017,
(i) in rule

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Tran-1 revision
Query (Issue) Started By: – manish raghuwanshi Dated:- 28-9-2018 Last Reply Date:- 25-10-2018 Goods and Services Tax – GST
Got 2 Replies
GST
Sir,
I have filed tran-1 in December,2018 but we have claimed short credit of excise available as per Er-1. Now how can claim balance credit. Can Gst council would allow revision in tran-1 in fuuret or can we ask refund to excise department.
Please suggest.
Reply By Yash Jain:
The Reply:
Dear Sir,
The GST Wing has started a

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AN ANALYSIS OF ADVANCE RULING IN THE CASE OF M/S COLUMBIA ASIA HOSPITALS PRIVATE LIMITED
By: – Prasanna Kumar
Goods and Services Tax – GST
Dated:- 28-9-2018

AN ANALYSIS OF ADVANCE RULING IN THE CASE OF
M/S COLUMBIA ASIA HOSPITALS PVT LTD
ADVANCE RULING NO. KAR.ADRG 15/2018
With due respect to the authorities for advance ruling in Karnataka, I have made an attempt to analyze the Advance Ruling given in the case of M/S COLUMBIA ASIS HOSPITALS PVT LTD.[ 2018 (8) TMI 876 – AUTHORITY FOR ADVANCE RULINGS, KARNATAKA ] This attempt is not to disrespect the authorities. This attempt is purely an academic one. The readers are required not to take this analysis as an opinion on legality.
Columbia Hospitals Pvt Limited
As per the contents of the Advance Ruling, M/S Columbia Hospitals Pvt Ltd is a private limited company and is an International Healthcare group operating a chain of modern hospitals across Asia. The Company is currently operating across six different states hav

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pplies. An example of how the company is distributing the common expenses is also quoted by the company in its application.
Issues for Advance Ruling
As per Para 3 of the Advance Ruling, The question on which advance ruling is sought is as follows;
” whether the activities performed by the employees at the corporate office in the course of or in relation to employment such as accounting, other administrative and IT system maintenance for the units located in other states as well i.e distinct persons as per Section 25(4) of the Central Goods and Services Act 2017(CGST ACT) shall be treated as supply as per Entry 2 of Schedule I of the CGST Act or it shall not be treated as supply of services as per Entry 1 of Schedule III of the CGST Act”
Also, as per Para 7 of the Advance Ruling, the Company has also asked,
“whether the allocation of expenses to registered units located in other states, by IMO tantamount to supply of service between related or distinct persons as per Entry 2 of S

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business of the Company is to provide secondary and tertiary healthcare services in India.
In Para 8.1 under “Findings & Discussion” to ascertain the applicability of Entry No.2 of Schedule I to the activities of the accounts and management done by the IMO (India Management Office) for the individual units located both within the state and also outside the state, the authorities have relied upon Entry 2 of Schedule I, which deals with the activities that are to be treated as supplies even if made without consideration, which reads as under;
“2. Supply of goods or services or both between related persons or between related persons or between distinct persons as specified in section 25, when made in the course or furtherance of business”
The contention of the authorities is that the transactions between employer and employee are taxable even though there is no consideration flowing between them since covered by Explanation to Section 15 of the CGST Act.
The reference to clause (c)

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ot there is volume, frequency, continuity or regularity of such transaction;
(d) supply or acquisition of goods including capital goods and services in connection with commencement or closure of business;
(e) provision by a club, association, society, or any such body (for a subscription or any other consideration) of the facilities or benefits to its members;
(f) admission, for a consideration, of persons to any premises;
(g) services supplied by a person as the holder of an office which has been accepted by him in the course or furtherance of trade, profession or vocation;
(h) services provided by a race club by way of totalisator or a license to book maker in such club; and
(i) any activity or transaction undertaken by the Central Government, a State Government or any local authority in which they are engaged as public authorities;
Discussion Paper by Expert Committee
But unfortunately, the phrase “in the course or furtherance of business has not been defined under Se

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titutes a business or not is determined by considering the whole of the activities carried on by him. If these activities are predominantly concerned with the making of taxable supplies to customers for a consideration, it has to be held that the taxable person is in the “business” of making taxable supplies, and that the taxable supplies which he makes are supplies made in the course of carrying on that business, especially if those supplies are made commercially by those who seek to profit from them. In the UK, there is generally a 6 – point test to determine whether an activity is in the course of business, which has emerged through various judicial decisions. The Paper explained that the same 6-point tests could serve as a set of tools to compare an activity with features of activities that were clearly in the nature of business. The 6-point tests are as follows;
* Is the activity a serious undertaking earnestly pursued?
* Is the activity an occupation or function which is acti

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the course of or in furtherance of its business since its business is to provide secondary and tertiary healthcare services only.
* Entry 2 of Schedule I states, “Supply of goods or services or both between related persons or between related persons or between distinct persons as specified in section 25, when made in the course or furtherance of business”. As long as the supply is not in the course of or in furtherance of business, it is not liable to GST though it is between distinct persons.
* Only transactions which are in the nature of business and have been carried on in the course of or furtherance of business, whether with or without consideration, are subject to GST and not otherwise. Of course subject to other provisions of the GST law.
* For sharing of expenses amongst branches, divisions, of a single entity, there is no need to apply GST since they don't tantamount to supply in the course of or furtherance of business in view of the explanation given herein above on s

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NO GST ON CONTRACTUAL LIQUOR BOTTLING (PART-1)
By: – Dr. Sanjiv Agarwal
Goods and Services Tax – GST
Dated:- 28-9-2018

Manufacture or production of liquor has always been a controversial matter in indirect tax regime. While the Constitution of India does not allow Union to levy any tax (earlier central excise duty or Goods and Services Tax now) on manufacture of alcoholic beverages meant for human consumption, i.e. potable liquor, it remains a State subject. This was earlier subject to levy of State Excise Duty and Value Added Tax and now subject to same taxes, it being out of GST ambit.
Pre-GST taxation
Prior to GST coming into force w.e.f. 01.07.2017, following taxes were levied on manufacture of alcoholic beverages meant for human consumption:
* State excise duty (on manufacture)
* Value added tax (on transfer of goods)
* Service Tax (based on contractual arrangements between bottlers and brand owners)
Both, prior and post 01.07.2017 (when negative list wa

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I 319 – MADHYA PRADESH HIGH COURT , it was held that “CBEC Circular dated 27.10.2008 on levy of service tax on production of alcoholic beverages on job work basis is in consonance with the statutory provisions and law as laid down by the Supreme Court. Keeping in view the dictionary clauses and circulars issues by the CBEC, it is quite luminescent that word 'manufacture' has to be understood in a broader sense and not to be confined or restricted to the excisable product in the Act. It would include all processes which amount to manufacture whether or not the final product is an excisable product.
In Sir Shadilal Distillery and Chemical Works & Another v. State of Uttar Pradesh, 1996 (1) TMI 453 – SUPREME COURT OF INDIA , Apex Court after referring to the decision rendered in Khoday Distilleries Ltd v. State of Karnataka 1995 (12) TMI 378 – SUPREME COURT OF INDIA had expressed the view that bottling of liquor is an integral part of manufacture and supply thereof.
The manufacturing pr

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n so held in Som Distilleries and Breweries Pvt. Ltd. v. State of MP 1996 (7) TMI 568 – MADHYA PRADESH HIGH COURT .
The decision rendered in M/s Vindhyachal Distilleries Pvt Ltd v. State of MP 2006 (4) TMI 249 – MADHYA PRADESH HIGH COURT does not state the law correctly inasmuch as it has expressed the opinion that packaging and bottling of liquor are not the part of manufacturing process and hence liable to service tax”.
Normally in such an arrangement, following cost elements are found –
(i) Bottling / job charges – paid to CBU
(ii) Distribution costs including freight, transit insurance etc – paid to CBU
(iii) Other reimbursable – paid to CBU
(iv) Cot of raw materials – paid to CBU
(v) Cost of packing materials – paid to CBU
(vi) State excise duty and VAT – paid to State Government
(vii) Surplus/profit – retained by BO
On 27.10.2008, the Ministry of Finance issued a Circular which specified taxability issue with reference to alcoholic products. Accordingly,
* 'Manufactur

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is being borrowed.
Thus just because Central Excise Act does not extend to the manufacture or production of alcoholic beverages meant for human consumption, it cannot be said that the term 'manufacture' used in Business Auxiliary Service would also not cover the process of making the said product, namely alcoholic beverages.
Such processes amounting to manufacture on production of goods were placed under negative list and no Service Tax was leviable thereon. There was no levy of service tax on any process or job work amounting to manufacture or production of goods including manufacture of alcoholic liquors for human consumption, opium, India hemp and narcotic drugs on which State excise duties are leviable. In essence, these were out of service tax net because in case of manufacture of goods, excise duties are leviable and in case of alcoholic beverage etc. these are subjects of taxation by States and not covered under Central Excise Act, 1944. Earlier, exemption was provided to se

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ed / documents maintained by the CBU.
* As regards the statutory levies, namely, excise duty/VAT, they do not present any 'consideration' for rendering the service. Whether such amount is paid by BO or by CBU, they have no nexus with the provision of service. As such, these levies will not be included for charging service tax.
* Similarly, the surplus/profit earned by the BO being in the nature of business profit (which falls within the purview of direct taxes), will not be chargeable to service tax.
The taxability was tested and decided in Blossom Industries Ltd. v. Commissioner, Daman 2015 (10) TMI 859 – CESTAT AHMEDABAD , wherein it was held that on plain reading of the Board instruction, it is clear that one of the elements of gross value of invoice is 'surplus/profit retained by BO', which would not be included in taxable value. In other words, the amount returned to BO is in so far as 'surplus/profit' of BO, cannot be included in the taxable value. The amount

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t, not amounting to manufacture or production of goods carried out by a person for another for consideration. Some of such services relating to processes not amounting to manufacture were exempt under Notification No. 25/2012-ST dated 20-6-2012 (entry No. 30).
Amendment made by Finance Act, 2017
Finance Act, 2017 had omitted the entry in clause 40 of section 65B within effect from the date of enactment. This omission is a consequent amendment as the said entry in negative list [Section 66D(6)] has been omitted and it will no longer be a part of negative list. However, the said service shall be allowed exemption under Entry No. 30(i) of amended Notification No. 25/2012-ST. The definition has now been provided in clause 2(ya) of the amended exemption Notification No. 25/2012-ST vide Notification No. 7/2017-ST dated 2.2.2017.
“(ya) 'process amounting to manufacture or production of goods' means a process on which duties of excise are leviable under section 3 of the Central Excise Act,

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9 of CGST Act, 2017. Accordingly, there shall be levied a tax called the central goods and services tax on all intra-State supplies of goods or services or both, except on the supply of alcoholic liquor for human consumption, on the value determined under section 15 and at such rates, not exceeding twenty percent, as may be notified by the Government on the recommendations of the Council and collected in such manner as may be prescribed and shall be paid by the taxable person.
Further, clause 12A of article 366 of the Constitution of India defines 'Goods and Services Tax' to mean any tax on supply of goods or services or both except taxes on the supply of the alcoholic liquor for human consumption. Thus, GST on alcoholic liquor for human consumption can not be levied under the present legal framework of GST.
(To be continued…)
Reply By Prasanna Kumar as =
Good article sir. Thank you.
Dated: 28-9-2018
Reply By Dr. Sanjiv Agarwal as =
Thanks.
Critical comments solicited.

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In Re: Manali Enterprise
GST
2018 (9) TMI 1769 – AUTHORITY FOR ADVANCE RULINGS, WEST BENGAL – TMI
AUTHORITY FOR ADVANCE RULINGS, WEST BENGAL – AAR
Dated:- 28-9-2018
19 of 2018 – 18/WBAAR/2018-19
GST
VISHWANATH AND PARTHASARATHI DEY MEMBER
Applicant's representative Sri Tirthankar Banerjee, Advocate
1. The Applicant, stated to be, inter alia, supplier of printed question papers for various examinations conducted by the Government/Government aided Educational Boards/ Councils/Universities etc is seeking a Ruling on whether GST is to be charged on such supply and, if so, at what rate and under what HSN or SAC code is the GST to be charged?
The Applicant also wants to know whether credit of the GST paid on the inputs used for provisioning the supply can be availed. Advance Ruling is admissible on these questions under Sections 97(2)(a),(d)&(e) of the CGST/WBGST Acts, 2017 (hereinafter referred to, collectively, as “the GST Act”).
The Applicant further submits that

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tomers, being either Government organisations or Government aided organisations, are not paying GST on the services so provided, which is rendering them unable to take credit on the GST paid during purchase of inputs.
3. It is necessary to determine whether the Question Papers supplied by the Applicant are “goods” or “services” before considering the other questions on which Ruling has been sought.
Under Section 2(52) of the GST Act, “goods” is defined as “every kind of movable property other than money and securities but includes actionable claims, 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”. “Property” is not defined under the GST Act. However, the lexicon meaning of “property” is “a thing or things belonging to someone.”
Under Section 2(102) of the GST Act, “services” is defined as “anything other than goods, money and securities but includes activities relating to the use of m

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rnments or authorities and local bodies as may be notified by the Government, on recommendations of the Council) under which the supply is to be considered as neither “goods” nor “services” are laid down. Under sub-section (3) it is stated that the Government may, on recommendations of the Council, specify, by notification, whether certain transactions are to be treated as supply of goods or services.
5. No Notification has been issued regarding the status of supply of Question Papers. Hence, Section 7(3) of the GST Act is not relevant for consideration. The Applicant has neither been notified to be an authority under Section 7(2) of the GST Act, nor is the activity of supplying printed question papers listed in the said Schedule III. Section 7(1) along with the relevant portions of Schedules I and II clearly state that transfer of title in goods is a supply of goods and in the absence of such transfer, even in the future, is to be considered as supply of services.
6. As stated in th

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GST Act, but to be supplying the service of printing. Hence, the SAC is to be determined and not the HSN.
Again, every transaction is a contract, but open market transactions in Question Papers as goods, being illegal, are not enforceable by law and void contracts in terms section 2(g) of the Indian Contract Act, 1872, and, therefore, beyond the ambit of the GST Act. It follows that classification under the Tariff Act, for the purpose of the GST Act, is also not applicable in such cases.
7. The Applicant is procuring the inputs required for provisioning the service of printing Question Papers. The content for printing, of course, is provided by the Boards / Institutions. The Applicant does not hold the right to the property of the printed question papers. The Boards/ Institutions prepare the question papers for conducting examinations and also fix the format in which the applicant is required to print the content. Section 8 of the GST Tariff-Services deals with Business and Productio

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as specified the printing of question papers for Educational Institutions, supply of service under Section 9 of the GST Tariff is found to be appropriate.
9. GST Rates for services whether or not exempt are governed by Notifications No. 11/2017-CT (Rate) and 12/2017-CT (Rate) dated 28/06/2017, as amended from time to time. No exemption is granted for supply of printing services to Government/Government aided Educational Boards/Councils/Universities/Institutions merely by virtue of being Government/Government-aided Institutions. Notification No. 12/2017-CT.(Rate) dated 28/06/2017, however, deals with Educational Board/Councils/Universities etc whether or not they are Government/ Government-aided.
10. Serial No. 66(b)(iv) of Notification No. 12/2017-CT(Rate) dated 28/06/2017, as amended from time to time, as applicable, wholly exempts services provided to an Educational Institution relating to conduct of examination. The phrase 'relating to' expands the scope of this entry to include s

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tates that “Where the goods or services or both are used by the registered person partly for effecting taxable supplies including zero-rated supplies under this Act or under the Integrated Goods and Services Tax Act and partly for effecting exempt supplies under the said Acts, the amount of credit shall be restricted to so much of the input tax as is attributable to the said taxable supplies including zero-rated supplies.” Since the supply of Question Papers to Educational Institutions if provided, for a particular examination is an exempt supply under Serial No. 66(b)(iv) of Notification No. 12/2017-CT (Rate) dated 28/06/2017, as amended, as applicable, the Applicant is not eligible to avail of Input Tax Credit.
In view of the foregoing we rule as under
RULING
a) Service of printing Question Papers for Educational Institutions [as defined under clause 2(y) read with Explanation (iv) to Notification No. 12/2017-CT (Rate) dated 28/06/2017] for specific examination is classifiable und

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In Re: RLJ Woven Sacks Pvt. Ltd.
GST
2018 (9) TMI 1770 – AUTHORITY FOR ADVANCE RULINGS, WEST BENGAL – 2018 (17) G. S. T. L. 687 (A. A. R. – GST)
AUTHORITY FOR ADVANCE RULINGS, WEST BENGAL – AAR
Dated:- 28-9-2018
ARN No. 20 of 2018 – 19/WBAAR/2018-19
GST
SHRI VISHWANATH AND SHRI PARTHASARATHI DEY MEMBER
Applicant's representative heard Sri Vinay Kumar Shraff, Advocate
1. The Applicant stated to be, inter alia, a manufacturer of Polypropylene Leno Bags seeks a Ruling on Classification of the above goods under the CGST/WBGST Acts, 2017 (hereinafter referred to as the “the said GST Act”).
Advance Ruling is admissible under Section 97(2)(a) of the said GST Act. The Applicant submits that the question raised in the Application has neither been decided by nor is pending before any authority under any provisions of the GST Act. The officer concerned raises no objection to the admission of the Application.
The Application is, therefore, admitted.
2. The Application sta

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and stitched to form the bags.
The Applicant is of the opinion that the PP Leno Bags manufactured is classifiable under Tariff Head 63053300 of the GST Tariff which is aligned to the First Schedule of the Customs Tariff Act, 1975 (hereinafter referred to as the “the said Tariff Act”).
3. The Applicant submits copies of the reports of test conducted by the Central Institute of Plastic Engineering & Technology dated 15.05.2018, the Indian Institute of Packaging dated 09.05.2018 and Registration of Technical Textile Unit viz. RLJ Woven Sacks Pvt. Ltd under RR-TUFS from Ministry of Textiles, dated 27/03/2015. The Applicant also submits a copy of IS 16187:2014 issued by the Bureau of Indian Standards, providing specifications for HDPE/PP Leno Woven Sacks for Packaging and Storage of fruits and vegetables. Since the above reports are specific to the samples provided by the Applicant to that particular Institute and also because it is clearly stated in the reports of Central Institute of Pl

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b Heading 39232990 under the GST Tariff covers articles for the conveyance or packing of goods, of plastics; stoppers, lids, caps and other closures, of plastics, namely, sacks and bags (including cones) made of plastics other than polymers of ethylene but not of poly (vinyl chloride). Tariff Sub Heading 63053300 under the GST Tariff covers sacks and bags, of a kind used for packing of goods, made, not of jute or of other textile bast fibres of Heading 5303, but of manmade textile materials which are not flexible intermediate bulk containers but are of polyethylene or polypropylene strip or the like.
The product PP Leno Bags, if described as only such, can be placed under either Tariff Code if merely these Tariff descriptions are referred to. However, it is to be seen if “PP Leno bags” have any variation in their composition or specification which may have a bearing on the Tariff Code under which the product is placed. It is, thus, obvious, that to correctly determine the classificati

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egnated, coated, covered or laminated with plastics, or articles thereof, of chapter 39″
8. Thus, to be included in Chapter 63, the width of the tapes, manufactured from Plastics or articles thereof of Chapter 39, used to weave the fabric should be less than or equal to 5mm and should not be impregnated, coated, covered or laminated with plastics or articles thereof, of chapter 39.
9. The Application states that the Applicant manufactures PP Leno Bags, as well as PP Woven Sacks, which are used, or may be used for packing a variety of materials. The inputs, the manufacturing process and the type of looms used for the manufacture of these Bags are the same.
10. From the explanatory notes and clarification provided for determination of classification of goods it is seen that two more factors are to be considered, namely, the width of the tape used in the weaving and whether or not there is a layer/lining in these bags. The specifications of the PP Leno Bags being manufactured by the Ap

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Central Government notifies that every electronic commerce operator, not being an agent, shall collect an amount calculated at a rate of half per cent
12/2018 Dated:- 28-9-2018 Union Territory GST (UTGST)
GST
UTGST
UTGST
MINISTRY OF FINANCE
(Department of Revenue)
NOTIFICATION No. 12/2018-Union Territory Tax
New Delhi, the 28st September, 2018
G.S.R. 940(E).- In exercise of the powers conferred by sub-section (1) of Section 22 read with Section 21 of Union Territory Goods and

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Central Government notifies that every electronic commerce operator, not being an agent, shall collect an amount calculated at a rate of one per cent
13/2018 Dated:- 28-9-2018 Union Territory GST (UTGST)
GST
UTGST
UTGST
MINISTRY OF FINANCE
(Department of Revenue)
NOTIFICATION No. 13/2018-Union Territory Tax
New Delhi, the 28st September, 2018
G.S.R. 941(E).-In exercise of the powers conferred by sub-section (1) of Section 22 read with Section 21 of Union Territory Goods and Se

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Modification to the Guidelines for Deductions and Deposits of TDS by the DDO under GST as clarified in Circular No. 65/39/2018-DOR dated 14.09.2018 – reg
67/41/2018-DOR Dated:- 28-9-2018 CGST – Circulars / Ordes
GST
Circular No. 67/41/2018-DOR
F.No.S.31011/11/2018-ST-I-DoR
Government of India
Ministry of Finance
Department of Revenue
***
New Delhi, Dated the 28th September, 2018
To,
1. Secretaries of the Central Ministries as pe list enclosed.
2. Chief Secretaries of all States/UTs with legislature/ UTs without Legislature.
3. All Finance Secretaries/ CCTs of the States/ UTs with Legislature/UTs without Legislature.
4. Chairman CBIC /All Principal Chief Commissioners/ Chief Commissioners/ Principal Commissioners/ Commiss

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ZAVERI AND CO PVT LTD Versus UNION OF INDIA
GST
2018 (10) TMI 141 – GUJARAT HIGH COURT – TMI
GUJARAT HIGH COURT – HC
Dated:- 28-9-2018
R/SPECIAL CIVIL APPLICATION NO. 15091 of 2018
GST
MR AKIL KURESHI AND MR B.N. KARIA, JJ.
For The PETITIONER : MR S N SOPARKAR, SR ADV WITH MR UCHIT N SHETH (7336)
ORAL ORDER
(PER : HONOURABLE MR.JUSTICE AKIL KURESHI)
1. Leave to amend.
2. Petitioners have challenged the vires of Rule 96(10)(b) of Central Goods and Service Tax Rules as

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