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In Re: The Association of Inner Wheel Clubs in India
GST
2018 (11) TMI 1574 – AUTHORITY FOR ADVANCE RULING, WEST BENGAL – 2019 (20) G. S. T. L. 119 (A. A. R. – GST)
AUTHORITY FOR ADVANCE RULING, WEST BENGAL – AAR
Dated:- 26-11-2018
Case No. 24 of 2018 Order No. 23/WBAAR/2018-19
GST
VISHWANATH AND PARTHA SARATHI DEY MEMBER
Present for the Applicant Vinay Kumar Shraff, Advocate
1. The Applicant, stated to be affiliated to International Inner Wheel and the administrative body for all Inner Wheel Clubs spread in 27 Inner Wheel Districts all over India (two of which fall within West Bengal), seeks a Ruling on whether the activities that are undertaken by them maybe termed as “business” and “supply of services” as defined under the WBGST/CGST Act, 2017 (hereinafter referred to as “the GST Act”).
Under Section 97 of the GST Act, Advance Ruling cannot be pronounced on the determination and definition of “business”.
The question regarding whether or not the activities

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live better lives.
Members of the Clubs which fall under the Applicant organize events which combine personal service, fundraising, fellowship and fun, united by friendship and to serve the local community. They provide financial and other practical support to the financially disadvantaged classes, including people suffering from natural disaster or in war-torn regions. The club accumulates funds through subscriptions, sponsorship fees, the sale of souvenirs etc.
The Application also states that if the Association dissolves the liabilities and assets will be distributed to other organisations having like objectives.
The Clubs which fall under the Applicant do not provide any facility or benefit to any of its members. The subscriptions/membership fees collected from the members are utilised entirely for funding charitable work.
The Applicant submits that although funds are collected through sponsorship fees, advertisements, sale of souvenirs etc, such activities do not fall within t

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herance of business;
(b) import of services for a consideration whether or not in the course or furtherance of business;
(c) the activities specified in Schedule I, made or agreed to be made without a consideration; and
(d) the activities to be treated as a supply of goods or supply of services as referred to in Schedule II.”
4. The Application, as well as the literature subsequently submitted by the Applicant regarding the Constitution, workings and objectives of the International Inner Wheel and the Bye-Laws of the Association of Inner Wheel Clubs in India, the Applicant, does not provide for any “import of services”, nor for any of the supplies of goods or services, with or without consideration, as enumerated in Schedules I and II.
The activity of the Applicant, therefore, is to be considered in the light of Section 7(1)(a) of the GST Act.
5. Upon careful perusal of the documents as mentioned above, it is seen that there are well laid down objectives of the Applicant, as well

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akes a Capitation Fee increase necessary, the Governing Body is authorised to increase the Capitation Fee with the same percentage as the increase in the cost of living index in the UK, but not exceeding 5%.
The Applicant, as a National Governing body of, and, being affiliated to the International body, is bound by these laws. And the Applicant's bye-laws also mention the annual subscription fees payable by each member. Voting rights are withdrawn from Clubs in arrears with dues.
Similar requirements regarding Membership fees and/or subscriptions and voting powers are in the District Committee Rules as well as in the Club Rules.
As per the information available in the public domain, members of Inner Wheel Clubs can access various programmes including those in the UN, a privilege not available to non-members.
6. It is thus, clear, from the above reads that the Inner Wheel Clubs have specific objectives and members are granted various facilities and/or benefits, enabling them to atte

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eel Clubs.
It appears that the fund collected is mainly spent on organising meetings and conventions like Triennial etc. Clearly, such meetings and gatherings provide facilities and benefits to the members in the form of a platform for social mixing, networking, promotion of friendship etc.
8. The term “business” under the GST Act includes, under Section 2(17), subclause (e) “provision by a club, association, society, or any other body (for a subscription or any other consideration) of the facilities or benefits to its members. It is, thus, clear that the Applicant is doing “business” as defined under section 2(17)(e) of the GST Act.
The subscription and membership fee is to be considered as consideration for the supply of such services, which are classifiable under SAC Heading 99959 under the category 'Services furnished by other membership organization'.
9. The Application also states that the Inner Wheel Clubs falling under the Applicant take part in a wide range of work for cha

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of Section 7(1) of the GST Act.
Such services are classifiable under SAC Heading 99836 under the category 'Advertising services'.
Sale of souvenirs is to be treated as a supply of goods.
11. The decision of the apex court in Sai Publication Fund (supra) is clearly not applicable in the present context, as the main activity is to be treated as a business.
In view of the foregoing, we rule as below
RULING
The Applicant's activities involve supply of services classifiable under SAC Heading 99959 against consideration received in the form of subscription and membership fees.
Services classifiable under SAC Heading 99836 are also supplied.
Sale of souvenirs is to be considered as a supply of goods.
The nature of supply for miscellaneous income as recorded in the Financial Accounts is to be determined by the nature of the supply.
This Advance Ruling is valid subject to the provisions under Section 103(2) until and unless declared void under Section 104(1) of the GST Act.
Case

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Sunaiba Industries Versus State Of U.P. And 2 Others
GST
2018 (12) TMI 295 – ALLAHABAD HIGH COURT – 2019 (22) G. S. T. L. 180 (All.)
ALLAHABAD HIGH COURT – HC
Dated:- 26-11-2018
Writ Tax No. – 1480 of 2018
GST
Pankaj Mithal And Pankaj Bhatia JJ.
For the Petitioner : Shubham Agrawal
For the Respondent : C.S.C.
ORDER
Heard Sri Subham Agrawal, learned counsel for the petitioner.
The petitioner is the selling dealer of the goods. The goods were being transported from Delhi to Kanpur in 30 builties. Only on account of improper invoice in respect of some of the builites, the goods have been seized and directed to be released on furnishing security and indemnity bond as provided under Section 129 (1) (b) of the U.P. Good

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THE MADHYA PRADESH GOODS AND SERVICES TAX (AMENDMENT) ORDINANCE, 2018
19721-309-21/2018 Dated:- 26-11-2018 Madhya Pradesh SGST
GST – States
Madhya Pradesh SGST
Madhya Pradesh SGST
MADHYA PRADESH ORDINANCE
NO.11 OF 2018
THE MADHYA PRADESH GOODS AND SERVICES TAX (AMENDMENT) ORDINANCE, 2018
First published in the “Madhya Pradesh Gazette (Extra-ordinary)”. dated the November, 2018.
Promulgated by the Governor of Madhya Pradesh in the sixty-ninth year of the Republic of India,
An Ordinance further to amend the Madhya Pradesh Goods and Services Tax Act, 2017 (No. 19 of2017).
Whereas the State Legislature is not in session and the Governor of Madhya Pradesh is satisfied that circumstances exist which render it necessary for him to take immediate action;
Now, therefore, in exercise of the powers conferred by clause (1) of article 213 of the Constitution of India, the Governor of Madhya Pradesh is pleased to promulgate the following Ordinance:-
Short title and commencemen

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al”, the words, bracket and figures “the Appellate Authority, the Appellate Tribunal and the Authority referred to in sub-section (2) of section 171” shall be substituted;
(b) in clause (16) for the words “Central Board of Excise and Customs”, the words “Central Board of Indirect Taxes and Customs” shall be substituted;
(c) 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”;
(d) clause (18) shall be omitted;
(e) with effect from the 1st day of July, 2017 clause (21) shall be deemed to have been omitted;
(f) with effect from the 1st day of July, 2017 clauses (22) to (111) shall be deemed to have been renumbered as clauses (21) to (110) respectively;
(g) in clause (35) as so renumbered, for the word, bracket and letter “clause (c)”, the word, bracket and letter “clause (b)” shall be substituted

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effect from the 1st day of July, 2017,-
(a) in sub-section (1), –
(i) in clause (b), after the words “or furtherance of business;”, the word “and” shall be inserted and shall always be deemed to have been inserted;
(ii) in clause (c), after the words “a consideration”, the word “and shall be omitted and shall always be deemed to have been omitted;
(iii) clause (d) shall be omitted and shall always be deemed to have been omitted;
(b) after sub-section (1), the following sub-section shall be inserted and shall always be deemed to have been inserted, namely:-
“(1A) Where certain activities or transactions constitute a supply in accordance with the provisions of sub-section (1), they shall be treated either as supply of goods or supply of services as referred to in Schedule II.”;
(c) in sub-section (3), for the words, brackets and figures “sub-sections (1) and (2)”, the words, brackets, figures and letter “sub-sections (1), (IA) and (2)” shall be substituted.
Amendment of secti

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existing proviso, for the words “one crore rupees”, the words “one crore and fifty lakh rupees” shall be substituted;
(iii) after the existing proviso, the following proviso shall be inserted, namely:-
“Provided further that a person who opts to pay tax under clause (a) or clause (b) or clause (c) may supply services (other than those referred to in clause (b) of paragraph 6 of Schedule II), of value not exceeding ten per cent of turnover in a State in the preceding financial year or five lakh rupees, whichever is higher.”;
(b) in sub-section (2), for clause (a), the following clause shall be substituted, namely:-
“(a) save as provided in sub-section (1), he is not engaged in the supply of services;”.
Amendment of section 12 8. In section 12 of the principal Act, in sub-section (2), in clause (a), the words, bracket and figure “sub-section (1) of' shall be omitted.
Amendment of section 13 9. In section 13 of the principal Act, in sub-section (2), the words, brackets and figur

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of the principal Act,-
(a) in sub-section (3), the following Explanation shall be inserted, namely:-
“Explanation.-For the purposes of this sub-section, the expression “value of exempt supply” shall not include the value of activities or transactions specified in Schedule III, except those specified in paragraph 5 of the said Schedule.';
(b) in sub-section (5), for clauses (a) and (b), the following clauses shall be substituted, namely:-
“(a) motor vehicles for transportation of persons having approved seating capacity of not more 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 o

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motor vehicles, vessels or aircraft referred to in clause (a) or clause (aa) except when used for the purposes specified therein, life insurance and health insurance:
Provided that the input tax credit in respect of such goods or services or both shall be available where an inward supply of such goods or services or both is used by a registered person for making an outward taxable supply of the same category of goods or services or both or as an element of a taxable composite or mixed supply;
(ii) membership of a club, health and fitness centre; and
(iii) travel benefits extended to employees on vacation such as leave or home travel concession:
Provided 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 the same to its employees under any law for the time being in force.”.
Amendment of section 20. 12. In section 20 of the principal Act, in the Explanation, in clause (c), for the words and

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. In section 24 of the principal Act, in clause (x), after the words “commerce operator”, the words and figure “who is required to collect tax at source under section 52” shall be inserted.
Amendment of section 25. 15. In section 25 of the principal Act,-
(a) in sub-section (1), after the existing proviso and before the Explanation, the following proviso shall be inserted, namely:-
“Provided further that a person having a unit, as defined in the Special Economic Zones Act, 2005, in a Special Economic Zone or being a Special Economic 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 same State.”;
(b) in sub-section (2), for the existing proviso, the following proviso shall be substituted, namely:-
“Provided that a person having multiple places of business in a State may be granted a separate registration for each such place of business, subject to such conditions as may be prescrib

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tax invoices have” shall be substituted;
(ii) for the words “a credit note”, the words “one or more credit notes for supplies made in a financial year” shall be substituted;
(b) in sub-section (3),-
(i) for the words “Where a tax invoice has”, the words “Where one or more tax invoices have” shall be substituted;
(ii) for the words “a debit note”, the words “one or more debit notes for supplies made in a financial year” shall be substituted.
Amendment of section 35. 18 In section 35 of the principal Act, 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. 19. In section 39 of the pri

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such conditions and safeguards as may be specified therein.”;
(c) in sub-section (9),-
(i) for the words “in the return to be furnished for the month or quarter during which such omission or incorrect particulars are noticed”, the words “in such form and manner as may be prescribed” shall be substituted;
(ii) for the proviso, the following proviso shall be substituted, namely:-
“Provided that no such rectification of any omission or incorrect particulars shall be allowed after the due date for furnishing of return for the month of September or second quarter following the end of the financial year to which such details pertain, or the actual date of furnishing of relevant annual return, whichever is earlier.”.
Insertion of section 43A.
20. After section 43 of the principal Act, the following section shall be inserted, namely:-
“43A. Procedure for furnishing return and availing input tax credit.
(1) Notwithstanding anything contained in sub-section (2) of section 16, section

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(5) The amount of tax specified in the outward supplies for which the details have been furnished by the supplier under sub-section (3) shall be deemed to be the tax payable by him under the provisions of the Act.
(6) The supplier and the recipient of supply shall be jointly and severally liable to pay tax or to pay the input tax credit availed, as the case may be, in relation to outward supplies for which the details have been furnished under sub-section (3) or sub-section (4) but return thereof has not been furnished.
(7) For the purposes of sub-section (6), the recovery shall be made in such manner as may be prescribed and such procedure may provide for non-recovery 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

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, the following proviso shall be inserted, namely:-
“Provided that the input tax credit on account of Union territory tax shall be utilised towards payment of integrated tax only where the balance of the input tax credit on account of central tax is not available for payment of integrated tax;”.
Insertion of sections 49A and 49B. 23. After section 49 of the principal Act, the following sections shall be inserted, namely:-
“49A. Utilisation of input tax credit subject to certain conditions.
Notwithstanding anything contained in section 49, the input tax credit on account of State tax shall be utilised towards payment of integrated 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.
49B. Order of utilisation of input tax credit.
Notwithstanding anything contained in this Chapter and subject to the provisions of clause (e) and clause (f) of sub-section (5) of section 49, th

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refund of unutilised input tax credit under clause (ii) of the first proviso to sub-section (3), the due date for furnishing of return under section 39 for the period in which such claim for refund arises;”.
Amendment of section 67. With effect from the day of July, 2017, in sub-section (2) of section 67 of the principal Act, for the opening paragraph, the following paragraph shall be substituted, namely:-
“Where the proper officer, not below the rank of Joint Commissioner, either pursuant to an inspection carried out under sub-section (1) or otherwise, has reasons to believe that any goods liable to confiscation or any documents or books or things, which in his opinion shall be useful for or relevant to any proceedings under this Act, are secreted in any place, he may authorise in writing any other officer of State tax to search and seize or may himself search and seize such goods, documents or books or things:”.
Amendment of section 79. 27. In section 79 of the principal Act, afte

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, subject to a maximum of fifty crore rupees.”.
Amendment of section 129. 30. In section 129 of the principal Act,-
(a) with effect from first day of July, 2017, in sub-section (1), for clause (b), the following clause shall be substituted, namely:-
“(b) on payment of the applicable tax and penalty equal to the fifty per cent. of the value of the goods reduced by the tax amount paid thereon and, in case of exempted goods, on payment of an amount equal to five per cent of the value of goods or twenty five thousand rupees, whichever is less, where the owner of the goods does not come forward for payment of such tax and penalty;”
(b) in sub-section (6), for the words “seven days”, the words “fourteen days” shall be substituted.
Amendment of section 140. 31. With effect from the 1st day of July, 2017, in section 140 of the principal Act,-
(a) in sub-section (4), for the opening paragraph, the following paragraph shall be substituted, namely:-
“A registered person, who was engaged in

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ime of sale thereof, not being earlier than six months prior to the appointed day, are returned to any place of business on or after the appointed day, the registered person shall be eligible for refund of the tax paid under the existing law where such goods are returned by a person, other than a registered person, to the said place of business within a period of six months from the appointed day and such goods are identifiable to the satisfaction of the proper officer:”;
(b) in sub-section (7), for clause (a), the following clause shall be substituted, namely:-
“(a) Every proceeding of appeal, revision, review or reference relating to any output tax liability initiated whether before, on or after the appointed day under the existing law, shall be disposed of in accordance with the provisions of the existing law, and if any amount becomes recoverable as a result of such appeal, revision, review or reference, the same shall, unless recovered under the existing law, be recovered as an

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, namely:-
“166. Laying of rules, regulations and notifications.
Every rule made by the Government, every regulation made by the Government and every notification issued by the Government under this Act, shall be laid, as soon as may be after it is made or issued, before the State Legislature, while it is in session, for a total period of thirty days which may be comprised in one session or in two or more successive sessions, and if, before the expiry of the session immediately following the session or the successive sessions aforesaid, the State Legislature agrees in making any modification in the rule or regulation or in the notification, as the case may be, or the State Legislature agrees that the rule or regulation or the notification should not be made, the rule or regulation or notification, as the case may be, shall thereafter have effect only in such modified form or be of no effect, as the case may be; so, however, that any such modification or annulment shall be without pr

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ct, 1957 (No. 3 of 1958) with regard to the effect of repeal.”.
Amendment of Schedule I. 37. In Schedule I of the principal Act, in paragraph 4, for the words “taxable person”, the word “person” shall be substituted.
Amendment of Schedule II. 38. In Schedule II of the principal Act, in the heading, after the word “ACTIVITIES”, the words “OR TRANSACTIONS” shall be inserted and shall always be deemed to have been inserted with effect from the 1st day of July, 2017.
Amendment of Schedule III. In Schedule III of the principal Act, –
(a) after paragraph 6, the following paragraphs shall be inserted, namely:-
“7. Supply of goods from a place outside India to another place outside India without such goods entering into India.
8. (a) Supply of warehoused goods to any person before clearance for home consumption;
(b) Supply of goods by the consignee to any other person, by endorsement of documents of title to the goods, after the goods have been dispatched from the port of origin located

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Anil Goel And Associates Versus Union of India & Ors.
GST
2018 (12) TMI 345 – DELHI HIGH COURT – 2019 (20) G. S. T. L. J143 (Del.)
DELHI HIGH COURT – HC
Dated:- 26-11-2018
W. P. (C) 9019/2017 & CM APPL. No. 36921/2017
GST
MR. SANJIV KHANNA AND MR. ANUP JAIRAM BHAMBHANI JJ.
Petitioner Through: Mr. Puneet Agrawal with Mr. Sai Prasanna, Advs.  
Respondents Through: Mr. Amit Bansal with Ms. Seema Dolo, Adv. for R3/GST.
Mr. Anurag Ahluwalia, CGSC for UOI.
Mr. Satyakam, ASC with Mr. Mohit Kumar, Adv. for R-2/GNCTD  
O R D E R
M/s. Anil Goel & Associates, a firm of Chartered Accountants has filed the present writ petition praying for multiple reliefs; but during the course of arguments, learned counsel for the

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Commissioner may, by notification specify that return may be filed under GSTR-3B. In other words, wherever the Commissioner has issued notification in terms of sub-rule 5 of Rule 61, the assessee would be required to file return in Form GSTR-3B and not in Form GSTR-3. Learned counsel for the petitioner is substantially satisfied as the statement made clarifies that Form GSTR-3B and not GSTR-3 is to be filed in case covered by Rule 61(5) of the Rules.
Counsel for the respondents has stated that notifications have been issued by the Commissioner, as per which the assessee are required to file returns in Form GSTR-3B till 31st March, 2019. Till then, returns are not required to be filled under Form GSTR-3.
Petitioner however submits that vid

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In Re: M/s. Chinta Polu Philip
GST
2018 (12) TMI 1158 – AUTHORITY FOR ADVANCE RULINGS, CHHATTISGARH – TMI
AUTHORITY FOR ADVANCE RULINGS, CHHATTISGARH – AAR
Dated:- 26-11-2018
STC/AAR/07/2018
GST
SHRI S.K. BUXY AND SHRI RAJESH KUMAR SINGH, MEMBER

Sub:- Chhattisgarh GST Act, 2017 – Advance Ruling U/s 98 – Regarding the GST rates applicable in case of Dietary Services.

Read:-Application dated 13.09.2018 from M/s. CHINTA POLU PHILIP, SECTOR-1, KHAMTARAI, BEHIND TAGOR NAGAR, RAIPUR (C.G.)

PROCEEDINGS

[U/s 98 of the Chhattisgarh Goods & Services Tax Act, 2017 (herein- after referred to as CGGST Act, 2017)]

No. STC/AAR/07/2018

Raipur, Dated 26.11.2018

The applicant M/s. CHINTA POLU PHILIP, SECTOR-1, KHAMT

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Processing of Applications for Cancellation of Registration submitted in FORM GST REG-16
PUBLIC NOTICE No. 05/2018-Customs Dated:- 26-11-2018 Trade Notice
Customs
OFFICE OF THE COMMISSIONER OF GOODS & SERVICE TAX (GST)
N-5, TOWN CENTRE, CIDCO, AURANGABAD – 431003
F. No. VGN (30) 06/T.N/18-19
Date: 26.11.2018
PUBLIC NOTICE No. 05/2018-Customs
Sub :- reg.
Attention is invited to the Circular No. 69 / 43 / 2018-GST dated 26-10-2018 issued by the Commissioner (CST), Government of In

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Late Delivery Charges
Query (Issue) Started By: – Kaustubh Karandikar Dated:- 25-11-2018 Last Reply Date:- 3-12-2018 Goods and Services Tax – GST
Got 8 Replies
GST
XYZ is receiving from PQR amount towards late delivery charges which will fall under the category of agreeing to the obligation to refrain from an act, or to tolerate an act or a situation, or to do an act and therefore XYZ will be liable to pay GST on the amount received. In this example, recipient of service is XYZ or PQR?
Reply By KASTURI SETHI:
The Reply:
Tolerating, refraining from, agreeing to etc.is a service under GST. Who is tolerating ? Who is refraining from ? Who is agreeing to ? . XYZ is tolerating, refraining from, agreeing to by way of imposing late

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iew, the person booking the expenses shall always be recipient (PQR) and one booking income (XYZ) shall always be supplier.
As per section 15(2)(d) value of supply include interest or late fee or penalty for delayed payment of any consideration for any supply.
Therefore the POS for late payment charges shall be equivalent to original supply.
Reply By Alkesh Jani:
The Reply:
Dear Kaustubh Karandikar,
In this regards, first of all it is to be decided that, late delivery charges received by the XYZ, is in relation to any Supply i.e. Goods or Services?. If this is the case, than PQR has already raised an Invoice and XYZ will deduct the amount of late delivery charges, this amount is to be included for valuation purpose, as per above menti

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Supply not reported correctly in GST3B and GSTR-1 return
Query (Issue) Started By: – Prakash Gupta Dated:- 24-11-2018 Last Reply Date:- 27-11-2018 Goods and Services Tax – GST
Got 4 Replies
GST
Dear Expert,
Need your view on below mentioned issues:
Facts of the case
Say a Company namely ABC forgot to mention a supply as well as GST liability thereon in form GSTR-3B and GSTR-1 in the month of Aug 2017, the GST liability was ₹ 100,000/-. The Company has noticed this mistake only in the month of the November 2018, while finalizing the annual return for the FY 2017-18. Further, The Company has always input tax credit balance exceeding ₹ 150,000/- during the period July 2017 to November 2018.
Query
1. Now how to rec

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y after match both returns. So wait for a new proforma for Annual Return on Common Portal.
Reply By Prakash Gupta:
The Reply:
Kasturi Sir,
Thanks for your reply. But please further light on liability of Interest question, keeping the fact that assessee has already had excess credit on supply GST in books of the accounts as well as on portal from the date of its liability , even till date it has not been utilized.
There was a bonafide mistake by the accountant while filling GSTR-3B and GSTR-1 return. However, due to mistakes of the assessee , there was no loss to revenue.
If my logic is not correct, please quote provision of the GST law, which say that set off liability on portal is GST is payment.
Reply By KASTURI SETHI:
The Reply:
D

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GIST OF RECENT PRONOUNCEMENTS ON GST (PART-XVIII)
By: – Dr. Sanjiv Agarwal
Goods and Services Tax – GST
Dated:- 24-11-2018

Goods and Services Tax (GST), introduced from July 1, 2017 is seventeen months old now but has resulted in operational and implementation disruptions affecting all stakeholders. GST law, as drafted and legislated, is not free from the interpretational hassles. GST Council is however, making regular changes to fix the anomalies and hardships faced by taxpayers. 30 meetings of GST Council have been held till 31st October, 2018.
Taxpayers have already challenged various provisions of GST laws and rules framed thereunder with our 200 writs being filed in different courts. High courts and Supreme court have taken a liberal stand so far in view of the fact that law is new and is yet evolving. However, CBIC may move to Supreme court where the verdict is against the Government. In recent past, CBIC had issued directions to be officers to defend the writs.

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Delhi.
One consigner, dispatched two consignments of goods which were covered by invoices for supply to consignees of Telangana and Dehradun. The aforesaid consignments were loaded from the premises of the consignor in small vehicle and were to be brought to transshipment branch situated at Greater Noida, UP where the goods were to be reloaded in two different trucks for transportation for Telangana and Dehradun. The distance between the business place of consignor and the Greater Noida Branch of transporter was approximately 25-30 Km.
The petitioner had downloaded two national e-way bills, one for Telangana and another for Dehradun and the consignor had duly filled the part of the aforesaid national e-way bill which contains the details of consignor as well as consignee and further the details and description of goods to be supplied. 'Part B' which pertains to details of truck/vehicle number was left blank to be filled by the transporter when the goods would be reloaded in r

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aded in other vehicles and then to proceed to its ultimate destination, namely, Telangana and Dehradun. Until and unless the goods/vehicle reached at the place of transport company from where it was required to be transported to its ultimate destination, no one can fill up the details of vehicle when admittedly the details are not known or available to the consignor or the driver.
In view of the aforesaid facts and circumstances of the case, the order of seizure passed under section 129(1) was held liable to be set aside and the authorities were to be ordered for release of the goods and the vehicle upon furnishing of the indemnity bond to the extent of proposed tax and penalty.
* In S.B.G.C Logistics v State of U.P. 2018 (5) TMI 697 – ALLAHABAD HIGH COURT, where the assessee, a transporter, was transporting the goods of its customers from New Delhi to Assam and Nagaland. The Competent Authority of the U.P. Goods and Services Tax Department had seized the above goods as well as the

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al proceedings initiated under section 129(3) and further in view of the Notification No. 12 of 2018, dated 7-3-2018 and the Clarification dated 31-3-2018, the seized goods in question as well as the vehicle were ordered to be released forthwith. It was held that in the instant case, the seizure proceedings were carried out illegally and the same are wholly without jurisdiction as also against the Government Notification and Central Government decision. Hence, both the seizure order and consequential penalty proceedings under section 129(3) were set aside.
* In VSL Alloys (India) (P.) Ltd. v State of U.P. (2018) 5 TMI 455 (Allahabad); where the petitioner is a private limited company and is engaged in manufacture and supply as well as export of industrial SS Tube, fittings and pipe fittings etc. The petitioner is registered under the provision of GST. The movement involved inter-State movement of goods and the validity of e-way bill showed that it is not valid for movement is pat B i

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Meghraj Moolchand Burad Versus Directorate General of GST Intelligence, Pune & Anr.
GST
2018 (11) TMI 1585 – BOMBAY HIGH COURT – TMI
BOMBAY HIGH COURT – HC
Dated:- 24-11-2018
Anticipatory Bail Application No. 2333 Of 2018
GST
A. S. Gadkari, J.
Mr. Ritesh Ratnam for the Applicant.
Mr. Mr. Bhyam Walve I/by Ram Ochani And Amit Palkar APP, for the Respondent-State.
P.C.:-
At the request of the learned counsel appearing for the Applicant, stand over to 10th December, 2018.

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REVOCATION OF CANCELLATION APPLICATION
Query (Issue) Started By: – Charan N Dated:- 23-11-2018 Last Reply Date:- 30-11-2018 Goods and Services Tax – GST
Got 8 Replies
GST
Der Sir/Madam,
I applied revocation of cancellation application for one my client and the same is showing under pending for processing and allotted to Center. We contacted concerned Jurisdictional officer and he is saying that he is not getting anything regarding revocation to process the application. I want to know whether revocation process started and any applications approved or processed by the department.
I am in very serious situation and want to revoke the application ASAP
Thanking you in advance
Reply By KASTURI SETHI:
The Reply:
First action is

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By KASTURI SETHI:
The Reply:
Sh.Kishan Barai Sir is totally correct. Here is relevant Board's instruction.
Extract of Board's Flyer no.1 dated 1.1.18
Cancellation of Registration
The GST law provides for two scenarios where cancellation of registration can take place; the one when the taxable person no more requires it (voluntary cancellation), and another when the proper officer considers the registration liable for cancellation in view of certain specified defaults (Suo motu cancellation) like when the registrant is not doing business from the registered place of business or if he issues tax invoice without making the supply of goods or services. The taxable person desirous of cancellation of Registration will apply on the co

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cancelled and it has to by restored on Common Portal System with the recommendation of jurisdictional GST Officers.
Reply By Kishan Barai:
The Reply:
Thank you very much sir for your appreciation.
Reply By Charan N:
The Reply:
Thank you one and all for your valuable suggestions.
Reply By Pavan Mahulkar:
The Reply:
As per proviso to rule 20
"Provided that no application for the cancellation of registration shall be considered in case of a taxable person, who has registered voluntarily, before the expiry of a period of one year from the effective date of registration."
[The following proviso was Omitted vide Notf no.03/2018-CT dt 23.01.2018]
So now the voluntarily registered person can apply for cancellation of RC before

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Court Finds Detention of Goods and Vehicle Unlawful Due to Non-Applicability of E-Way Bill Requirement.
Case-Laws
GST
Detention of goods alongwith vehicle – Since the requirement of the E-way

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Hotel & Resturant services
Query (Issue) Started By: – DIVYAM JAIN Dated:- 23-11-2018 Last Reply Date:- 1-1-2019 Goods and Services Tax – GST
Got 1 Reply
GST
What are the provisions & rate applicable for hotel & Resturant industry
Wharther a Service Reciepient can take credit for amount paid to hotels
Who can charge tax@5% and who can charge @18%
Reply By HIREGANGE& ASSOCIATES:
The Reply:
1. Rate applicable for standalone Restaurant service is 5% ;
2. Restaurant service loca

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Regarding Combined contract for Supply and Installation of CCTV Cameras and Fire Extinguishers – Works contract or Supply of goods?
Query (Issue) Started By: – Shyam Agarwal Dated:- 23-11-2018 Last Reply Date:- 24-11-2018 Goods and Services Tax – GST
Got 6 Replies
GST
Sir, whether Combined contract for Supply and Installation of CCTV Cameras and Fire Extinguishers in Residential building is treated as works contract under GST or supply of goods?
Reply By YAGAY andSUN:
The Reply:
Supply and installation of CCTV would fall under the category works contract as without installation and link it with control room it would not work whereas there is no need to install the fire extinguishers as it may work without such installation h

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GST on Housing Society for rendering services to its members
By: – Sanjeev Singhal
Goods and Services Tax – GST
Dated:- 23-11-2018

First of All housing societies means unincorporated body or Non -Profit entity registered under any law for the time being in force whether it is cooperative society or society register under Societies Act.
“Simply put these are a collective body of persons, who stay in a residential society. As a collective body, they would be supplying certain services to its members, be it collecting statutory dues from its members and remitting to statutory authorities, maintenance of the building, security etc.”
A Society is akin to a club, which is composed of its members. So, can a service provided by a Housing Society to its members be treated as service provided by one person to another. The answer is yes. The following extracts of the GST law will make the position clear.
Section- 9 of the CGST Act says that GST is applicable on “supply of Goods

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cluding 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 his trade, profession or vocation;
(h) services provided by a race club by way of totalisator or a licence 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.
Thus, as per section 2(17)(e) of the CGST Act, 2017 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 is deemed to be a business. The activities of the ho

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ing society charge ₹ 8500 per month for all services provided to its members, GST shall be charged on ₹ 1000 only. Therefore charges collected by the society on account of property tax, electricity charges shall be excluded while calculating the limit of ₹ 7500.
A per the TRU F.N. 332/04/2017 issued by the Ministry of Finance, the following FAQ has been released .
Subject: FAQs on levy of GST on supply of services to the Co-operative society- reg S. No.
Question
Answer
1.
The society collects the following charges from the members on quarterly basis as follows:
1.Property Tax-actual as per Municipal Corporation of Greater Mumbai (MCGM)
2.Water Tax- Municipal Corporation of Greater Mumbai (MCGM)
3.Non- Agricultural Tax- Maharashtra State Government
4.Electricity charges
5.Sinking Fund- mandatory under the Bye-laws of the Co-operative Societies
6.Repairs & maintenance fund
7.Car parking Charges
8.Non Occupancy Charges
9.Simple interest for late payment.

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t for its members.
2.
As per guidelines on maintenance charges upto ₹ 5000/- no GST is applicable. Maintenance charges means only maintenance or collection of all charges
This is applicable to only the reimbursements of charges or share of up to an amount of five thousand rupees per month per member for sourcing of goods or services from a third person for the common use of its members. Here, charges mean the indivisual contributions made by members of the society to avail services or goods by the society from a third party for common use. [*Entry 77(c) of notification no 12/2017 Central Tax (Rate) dated 28.6.2017 refers]
3.
Monthly maintenance (all above charges) are below ₹ 5000/-but yearly
Reimbursement of charges or share of contribution up to an amount of ₹ 5000/- per
*Amount of ₹ 5000 shall be read as ₹ 7500 amended since 25.01.2018.
All Housing Societies Falls under the Parameter of Notification No. 12 dated 28.06.2017.
– > Answer is No
Re

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ANTI-PROFITEERING IN GST: CONSTRUCTIVE EVIDENCE MUST
By: – Dr. Sanjiv Agarwal
Goods and Services Tax – GST
Dated:- 23-11-2018

Section 171 of GST law is the most powerful provision to check excessive profiteering resorted to by businesses owing to tax efficiency accruing because of goods and services tax (GST). The National Anti-profiteering Authority (NAA) entrusted with disposing of such cases including implementation of provision and monitoring has already decided over a dozen of anti-profiteering complaints and ruled, both for and against complaints.
The law of positive evidence has been applied by NAA in all such cases and where there was no evidence of anti-profiteering stance or it could not be proved in view of lack of evidence, such complaints were decided in favour of business entity or against the complainant. In other words, complainant has to provide substantial evidence to prove that the accused business entity has indulged in anti-profiteering or the bus

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conducted by Director General Anti-profiteering against could not establish profiteering for want of credible evidence of profiteering against a specific supplier of KFC and accordingly no violation of provisions of section 171 could be established.
It was alleged that company had not passed on the benefit of reduction of tax from 18% to 5% to its customers. He had also alleged that it was supplying him Burger @ ₹ 32/- per unit and after adding 18% GST, he was paying about ₹ 40/- per unit before the tax was reduced w.e.f. 15.11.2017, whereas he was purchasing the above product @ ₹ 42/- per unit after the reduction in the rate of tax and therefore, the company was illegally profiteering by appropriating the amount of reduction of tax by fleecing the poor customers as he was denying them the benefit of reduction and therefore action should be taken against him.
However, on being asked by DGAP to provide the pre and post GST invoices of the products sold and other det

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ions of section 171 of the CGST Act, 2017 and the complaint being non maintainable, was dismissed.
Amway India Case
In another complaint in the matter of Amway India, i.e. DGAP v. Amway India Enterprises Pvt. Ltd., National Anti-profiteering Authority vide its Order dated 29th October, 2018 and reported in 2018 (10) TMI 1614 – NATIONAL ANTI-PROFITEERING AUTHORITY has come to the conclusion that application filed by applicant requesting for action against Amway for alleged violation of provisions of section 171 on ground that it had not passed on benefit of reduction in GST rates from 28 per cent to 18 per cent on selected items to its customers/Amway Business Owners, would not be maintainable as there was no specific evidence of profiteering against respondent. In absence of description of any product, name of supplier and any specific evidence of profiteering by respondent no further investigation could be conducted. Hence, no violation of provisions of section 171 had been found.

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The Goa Goods and Services Tax (Amendment) Ordinance, 2018 (Ordinance No. 3 of 2018)
8/3/2018-LA Dated:- 23-11-2018 Goa SGST
GST – States
Goa SGST
Goa SGST
GOVERNMENT OF GOA
Department of Law & Judiciary
Legal Affairs Division
__
Notification
8/3/2018-LA
The Goa Goods and Services Tax (Amendment) Ordinance, 2018 (Ordinance No. 3 of 2018), which has been promulgated by the Governor of Goa on 20-11-2018, is hereby published for general information of the public.
Sharad G. Marathe, Additional Secretary
(Law).
Porvorim, 23rd November, 2018.
–
The Goa Goods and Services Tax (Amendment) Ordinance, 2018 (Ordinance No. 3 of 2018)
Promulgated by the Governor of Goa in the Sixty-ninth Year of the Republic of India.
An Ordinance to amend the Goa Goods and Services Tax Act, 2017 (Goa Act 4 of 2017).
Whereas, the Legislative Assembly of Goa is not in session and the Governor of Goa is satisfied that circumstances exist which render it necessary for her to take immediate

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the expression “the Appellate Authority, 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 bookmaker or activities of a licensed bookmaker in such club; and”;
(iv) clause (18) shall be omitted;
(v) in clause (35), for the expression “clause (c)”, the expression “clause (b)” shall be substituted;
(vi) in clause (69), in sub-clause (f), after the word and figures “article 371”, the expression “and article 371J” shall be inserted;
(vii) in clause (102), the following Explanation shall be inserted, namely:-
“Explanation.- For the removal of doubts, it is hereby clarified that the expression “services

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(1), (1A) and (2)” shall be substituted.
4. Amendment of section 9.- In section 9 of the principal Act, 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.”.
5. Amendment of section 10.- In section 10 of the principal Act,-
(i) in sub-section (1),-
(a) for the expression “in lieu of the tax payable by him, an amount calculated at such rate”, the expression “in lieu of the tax payable by him under sub-section (1) of section 9, an amount of tax calculat

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endment of section 13.- In section 13 of the principal Act, in sub-section (2), the expression “sub-section (2) of” wherever it occurs, shall be omitted.
8. Amendment of section 16.- In section 16 of the principal Act, 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, before or during movement of goods, either by way of transfer of documents of title to goods or otherwise;
(ii) where the services are provided by the supplier to any person on the direction of and on account of such registered person.”;
(ii) in clause (c), for the word and figures “section 41”, the words, figures and letter “section

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amely:-
(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 specified therein;
(ii) where received by a taxable person engaged,-
(I) in the manufacture of such motor vehicles, vessels or aircraft; or
(II) in the supply of general insurance services in respect of such motor vehicles, vessels or aircraft insured by him;
(b) the following supply of goods or services or both,-
(i) food and beverages, outdoor catering, beauty treatm

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he principal Act, 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.
11. Amendment of section 22.- In section 22 of the principal Act,-
(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 proviso, he shall be liable to be registered if his aggregate turnover in a financial year exceeds the amount equivalent to such enhanced turnover.”;
(ii) in the Explanation, in clause (iii), after the word “Constitution”, the expression “except the State of Jammu and Kashmir and States of Arunachal Pradesh, Assam, Himachal Pradesh, Meghalaya, Sikkim and Uttarakhand” shall be inserted.”.
12. Amendment of section 24.- In section

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14. Amendment of section 29.- In section 29 of the principal Act,-
(i) in the 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.”;
(iii) in sub-section (2), after the proviso, the following proviso shall be inserted, namely:-
“Provided further that during pendency of the proceedings relating to cancellation of registration, the proper officer may suspend the registration for such period and in such manner as may be prescribed.”.
15. Amendment of section 34.- In section 34 of the principal Act,-
(i) in sub-section (1),-
(a) for the words “Where a tax invoice has”, the words “Where one or more tax invoices have” shall be substituted;
(b) for

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the words “in such form and manner as may be prescribed”, the expression “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 Council, notify certain classes of registered persons who shall furnish return for every quarter or part thereof, subject to such conditions and safeguards as may be specified therein.”;
(ii) in sub-section (7), the following proviso shall be inserted, namely:-
“Provided that the Government may, on the recommendations of the Council, notify certain classes of registered persons who shall pay to the Government the tax due or part thereof as per the return on or before the last date on which he is required to furnish such return, subject to such conditions and safeguards as may be spec

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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 supplies not furnished under sub-section (3) shall be such as may be prescribed and such procedure may include the maximum amount of the input tax credit which can be so availed, not exceeding twenty per cent. of the input tax credit available, on the basis of details furnished by the suppliers under the said subsection.
(5) The amount of tax specified in the outward supplies for which the details have been furnished by the supplier under sub-section (3) shall be deemed to be the tax payable by him under the provisions of the Act.
(6) The supplier and the recipient of a supply shall be jointly and severally li

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word and figures “section 45”, the words “and to perform such other functions” shall be inserted.
20. Amendment of section 49.- In section 49 of the principal Act,-
(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;
(ii) in sub-section (5),-
(a) in clause (c), the following proviso shall be inserted, namely:-
“Provided that the input tax credit on account of State tax shall be utilized towards payment of integrated tax only where the balance of the input tax credit on account of central tax is not available for payment of integrated tax;”;
(b) in clause (d), the following proviso shall be inserted, namely:-
“Provided that the input tax credit on account of Union territory tax shall be utilized towards payment of integrated tax only where the balance of the input tax credit on account of central tax is not available for payment of integrated tax;”.
21. Insertion of new section 49A and se

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, in sub-section (9), for the word and figures “section 37”, the words and figures “section 37 or section 39” shall be substituted.
23. Amendment of section 54.- In section 54 of the principal Act,-
(i) in sub-section (8), for clause (a), the following clause shall be substituted, namely:-
“(a) refund of tax paid on export of goods or services or both or on inputs or input services used in making such exports;”;
(ii) in the Explanation, in clause (2),-
(a) in sub-clause (c), in item (i), after the words “foreign exchange”, the words “or in Indian rupees wherever permitted by the Reserve Bank of India” shall be inserted;
(b) for sub-clause (e), the following sub-clause shall be substituted, namely:-
“(e) in the case of refund of unutilised input tax credit under clause (ii) of the first proviso to sub-section (3), the due date for furnishing of return under section 39 for the period in which such claim for refund arises;”.
24. Amendment of section 79.- In section 79 of the prin

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ipal Act, in sub-section (1), in clause (b), after the proviso, the following proviso shall be inserted, namely:-
“Provided further that the period of one year and three years may, on sufficient cause being shown, be extended by the Commissioner for a further period not exceeding one year and two years respectively.”.
29. Amendment of section 173.- In section 173 of the principal Act, in clause (ii), for the expression “Act 16 of 1969”, the expression “Act 7 of 1969” shall be substituted.
30. Amendment of Schedule I.- In Schedule I of the principal Act, in paragraph 4, the word “taxable” shall be omitted.
31. Amendment of Schedule II.- In Schedule II of the principal Act, in the heading, after the word “ACTIVITIES”, the words “OR TRANSACTIONS” shall be inserted and shall be deemed to have been inserted with effect from the 1st day of July, 2017.
32. Amendment of Schedule III.- In Schedule III of the principal Act,-
(i) after paragraph 6, the following paragraphs shall be inserted

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KERALA STATE FINANCIAL ENTERPRISES LTD. Versus UNION OF INDIA REPRESENTED BY THE SECRETARY, NEW DELHI, COMMISSIONER OF CENTRAL EXCISE, CUSTOMS AND SERVICE TAX (APPEALS), COCHIN, ADDITIONAL COMMISSIONER CENTRAL GST AND CENTRAL EXCISE TRIVANDRUM COMMISIONERATE, TRIVANDRUM, JOINT COMMISSIONER CENTRAL GST AND CENTRAL EXCISE, THIRUVANANTHAPURAM, ASSISTANT COMMISSIONER CENTRAL GST AND CENTRAL EXCISE, TRIVANDRUM AND SUPERINTENDENT CENTRAL GST AND CENTRAL EXCISE, ATTINGAL
Service Tax
2018 (11) TMI 1474 – KERALA HIGH COURT – TMI
KERALA HIGH COURT – HC
Dated:- 23-11-2018
WP(C).No. 35572 of 2018, WP(C).No. 35796 of 2018 And WP(C).No. 35607 of 2018
Service Tax
MR DAMA SESHADRI NAIDU, J.
For The Petitioner : ADVS. SRI.SANDEEP GOPA

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Warranty Charges
Query (Issue) Started By: – Kaustubh Karandikar Dated:- 22-11-2018 Last Reply Date:- 22-11-2018 Goods and Services Tax – GST
Got 1 Reply
GST
XYZ(India) importing goods from PQR (Japan) which is a parent company. XYZ re-selling these goods to customers in India. During warranty period, if any defect found in these goods, XYZ giving free replacement to the customers in India and the amount for the same is recovered from PQR as reimbursement of warranty charges. Is XYZ

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Revocation of GST
Query (Issue) Started By: – Pranav Mishra Dated:- 22-11-2018 Last Reply Date:- 28-11-2018 Goods and Services Tax – GST
Got 4 Replies
GST
My GST was cancelled due to failure of non filing, to which I filed all dues and penalties and submitted hard copy to the proper officer. I was told to submit revocation form online which was not accessible to me. However the login to the GST portal was denied. I talked to the customer support of GST where they took time to look into any IT related issue but after few weeks I was directed to the proper officer again. Proper officer somehow was able to open my GST portal but the revocation section was still not working. They kept on calling be week after week to look into the

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etings related to the same. I am running a small organization and the refund has my rolling amount in it. Please tell me what are the other possibilities I have now to get the refund as its a huge amount for me which is stuck without which I would have to shutdown the firm and run away from whole world.
Reply By DR.MARIAPPAN GOVINDARAJAN:
The Reply:
Please file a writ petition before the High Court.
Reply By Kishan Barai:
The Reply:
Plz don't say "run away from whole world". This world needs your help, there is always a solution for any problem.
Reply By Mohit Chauhan:
The Reply:
Yes, I totally agree. File a writ petition in the High Court and do not be discouraged. I hope everything will work out very soon and that yo

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State-Owned Company in Punjab Liable for GST on Ancillary Services Under Companies Act, 2013: Transfer Fees Included.
Case-Laws
GST
Levy of GST – ancillary service provided by a company duly

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Revenue Department Criticized for Insisting on Cash Payment for IGST Despite Online Payment Being Made.
Case-Laws
GST
Detention of goods – demand of IGST – petitioner paid the amount through the portal – Revenue insists that the petitioner ought to have paid the tax and penalty either through cash or through Demand Draft – That insistence seems to be archaic and out of tune with the very spirit of the GST regime.
TMI Updates – Highlights, quick notes, marquee, annotation, news, aler

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Restaurant Profiteering: Failing to Pass Tax Reductions, Overcharging Customers with Extra GST Violates Legal Standards.
Case-Laws
GST
Profiteering – reduction of rate of tax – The restaurant has failed to pass on both the above benefits to his customers – The amount is inclusive of the extra GST which the Respondent had forced the customers to pay due to wrong increase in his basic prices otherwise the prices to be paid by them should have further got reduced by the amount of the GST i

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ADJUSTMENT OF GST PAID IN WRONG HEAD
By: – DR.MARIAPPAN GOVINDARAJAN
Goods and Services Tax – GST
Dated:- 22-11-2018

In payment of tax it is usual to pay the tax in the wrong head. The service tax provisions in such scenario allow the assessee to get the refund of tax paid in the wrong head but the assessee is to pay tax in the correct head. There was no self adjustment of tax paid in the wrong head to the correct head or by the Department. The said problem also is available in GST provisions.
In 'S. Saji v. The Commissioner, SGST and others' – 2018 (11) TMI 954 – Kerala High Court, the petitioner purchased certain goods from Tamil Nadu. While in transit of the said goods to Kerala the Authorities retained the goods and issued the demand of tax to the petitioners. The consignor of the petitioners paid the tax under SGST along with the penalty based on the directions of the Authority. The petitioner showed to the Authorities the receipt as evidence of tax and penalty. T

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e tax paid mistakenly under one head instead of another.
* Rule 4 speaks of adjustment.
* Where the amount of refund is completely adjusted against any outstanding demand under the Act, an order giving details of the adjustment is to be issued in Part A of FORM GST RFD-07.
* The petitioner's counsel lays stress on this process of adjustment and asserts that the amount remitted under one head can be adjusted under another head, for the demand can be any amount under the Act.
The High Court found no difficulty for the respondent officials to allow the petitioner's request and get the amount transferred from the head 'SGST' to 'IGST'. It may, as the Government Pleader has contended, take some time, but it is inequitable for the authorities to let the petitioner suffer on that count. The High Court directed the Revenue the 2nd respondent to release the goods forthwith along with the vehicle and, then, ensure that the tax and penalty already stood remitted under

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terest on the amount of central tax and State tax or, as the case may be, the central tax and the Union territory tax payable.
Section 77(1) provides the situation in which the assessee paid the tax the CGST and SGST or CGST and UTGST on the hope that it is an intra-State supply. But the said supply is later held to be inter-State supply which attracts the payment of IGST. Here the payment of tax in the wrong head is on the genuine hope that it is an intra-State supply. In such cases the service tax paid as SGST shall be refunded to the assessee in such manner and subject to such conditions as may be prescribed. But the assessee is to pay IGST.
Section 77(2) provides the situation which is reverse to section 77(1). In this situation the assessee considered the transaction as inter-State supply and paid integrated tax but subsequently it is held as intra-State supply which attracts the payment of CGST and SGST. In this case also there is no adjustment of tax from one head to another.

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giving details of the adjustment shall be issued in Part A of FORM GST RFD-07. This Rule may be wrongly quoted as Rule 4(1) of GST Refund Rules, 2017.
Rule 92 (1) authorizes the Revenue to adjust the tax, if any, outstanding, against the refund payable to the assessee. It does not amount to adjustment of tax paid in the wrong head to the correct head.
However the judgment of the High Court is a welcome one since it is beneficial to the assessees. The GST Council is also to consider to make rule on the adjustment of tax paid in the wrong head to the correct head in line with the judgment of the High Court, Kerala.
Reply By Durga Prasad as =
Dear Sir,
as sec 77(1) doesn't specify whether interest to be paid or not on such Liability unlike sec 77(2) where it clearly mentions that "without payment of interest", so what should we imply from that ? shall we needs to pay interest on the same or not ?
Thanking you sir.
Dated: 24-6-2019
Reply By kollengode venkitaraman a

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DECODING GST ANNUAL RETURN -GSTR-9
By: – Chitresh Gupta
Goods and Services Tax – GST
Dated:- 22-11-2018

The Goods & Services Tax has been implemented from July 1, 2017. It has brought about a paradigm shift in the methodology of levy and collection of taxes.
GST is a transaction based Indirect tax where returns are filed periodically. It may be monthly or quarterly depending on the type of assessee or type of Return. The concept of Annual return in transaction-based tax is not new. It was prevalent in Central statutes like Excise Act in the form ER-4, 5 & 7. In  Service Tax also,annual return was proposed vide notification no. 19/2016-ST dated 01.03.2016, however on account of implementation of GST, the format of the annual return was not notified. The annual return was also prevalent in various State based VAT Acts.  This required assessee to consolidate the information relating to Sale, Purchase including Input Tax Credit claimed in return and file the

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year.
Type of Return
Assessee liable to file Annual Return
GSTR 9
Filed by the regular taxpayers filing GSTR 1, GSTR 2, GSTR 3.
GSTR 9A
Filed by the persons registered under composition scheme under GST.
GSTR-9B
Filed by the e-commerce operators who have filed GSTR 8
GSTR-9C
Reconciliation Statement duly certified by CA or ICWA to be filed by the taxpayers, whose annual turnover exceeds Rs  2 crores during the financial year. This needs to be filed along with annual return and audited financial statement.
Implication for Delayed/ Non Filing of Annual Return
As per proviso to section 47(2), any registered person who fails to furnish the return required under section 44 [annual return] by the due date shall be liable to pay a late fee of one hundred rupees for every day during which such failure continues subject to a maximum of an amount calculated at a quarter percent of his turnover in the State or Union territory. The la

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s earlier
VI
Other Information
PART I: BASIC DETAILS
Part I seeks to capture the basic details of the Registered Person. The details to be provided are as under;
1
Financial Year
2
GSTIN
3A
Legal Name
3B
Trade Name (if any)
The Financial year will be 2017-18. However, since GST has been implemented from July 01,2017, the data in the Annual Return will relate to period of July 2017 to March 2018. The GSTIN, Legal Name and Trade name as appearing in GST REG-06 is to be mentioned.
It may be noted that Annual return need to be filed for each GSTIN separately. Thus, if a multi-locational entity has 20 GSTIN, then 20 separate Annual return need to be filed. In case an entity has more than one GSTIN in the same state either due to separate business vertical or SEZ unit etc, separate annual return shall be filed.
PART II: DETAILS OF OUTWARD AND INWARD SUPPLIES DECLARED DURING THE FINANCIAL YEAR
This part specifically provides the consolidated view of Outward Supplies made by Re

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on which tax is to be paid on reverse charge basis
H
Sub-total (A to G above)
I
Credit Notes issued in respect of transactions specified in (B) to (E) above (-)
J
Debit Notes issued in respect of transactions specified in (B) to (E) above (+)
K
Supplies / tax declared through Amendments (+)
L
Supplies / tax reduced through Amendments (-)
M
Sub-total (I to L above)
N
Supplies and advances on which tax is to be paid (H + M) above
An important point to note here is that GSTR-9 will contain only the data as declared in already filed returns by registered person. This is in contrast with the Annual return as filed under VAT regimes where the modification if any in the return was carried out in Annual return. The same option is not available in GSTR-9.
Another point for discussion is that at the time of preparation of GSTR 9, whether the details required to be reported at Part 4 should be:
1. Restricted to details reported in the GSTR 1 for the period July 2017 to March 201

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n which tax is not liable to be paid in Table 5.  These include;
A
Zero rated supply (Export) without payment of tax
B
Supply to SEZs without payment of tax
C
Supplies on which tax is to be paid by the recipient on reverse charge basis
D
Exempted
E
Nil Rated
F
Non-GST supply
G
Sub-total (A to F above)
H
Credit Notes issued in respect of transactions specified in A to F above (-)
I
Debit Notes issued in respect of transactions specified in A to F above (+)
J
Supplies declared through Amendments (+)
K
Supplies reduced through Amendments (-)
L
Sub-Total (H to K above)
M
Turnover on which tax is not to be paid  (G + L above)
N
Total Turnover (including advances) (4N + 5M – 4G above)
It may be noted that Debit notes and credit notes which are in relation to these supplies should be captured only if the suitable effect of GST is provided in them. Any commercial/accounting credit or debit notes which do not contain the charge of GST should not be adjuste

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m registered persons liable to reverse charge (other than B above) on which tax is paid and ITC availed
Inputs
Capital Goods
Input Services
E
Import of goods (including supplies from SEZs)
Inputs
Capital Goods
F
Import of services (excluding inward supplies from SEZs)
G
Input Tax credit received from ISD
H
Amount of ITC reclaimed (other than B above) under the provisions of the Act
I
Sub-total (B to H above)
J
Difference (I – A above)
K
Transition Credit through TRAN-I (including revisions if any)
L
Transition Credit through TRAN-II
M
Any other ITC availed but not specified above
N
Sub-total (K to M  above)
O
Total ITC availed (I +  N above)
The above table specifically provides reconciliation of total credit as availed under GSTR-3B with various sources of ITC like Inward supplies from Registered person, Unregistered person, Imports, ISD etc, We also need to disclose the transition credit as filed under TRAN-I & TRAN-II.
The practical issue in co

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equires the details of ITC which is declared as Ineligible or reversed on account of Rule 37, 39, 42 & 43
Rule
Description
37
Reversal of input tax credit in the case of non-payment of consideration
39
Reversal of Excess Credit by  Input Service Distributor
42
Reversal of ITC in respect of inputs or input services  on account of Exempt & Non Taxable supply
43
Reversal of ITC in respect of Capital Goods on account of Exempt & Non- Taxable supply
The details required under Table 7 are as under;
A
Reversal of ITC as per Rule 37
B
Reversal of ITC as per Rule 39
C
Reversal of ITC as per Rule 42
D
Reversal of ITC as per Rule 43
E
Ineligible ITC as per section 17(5)
F
Reversal of TRAN-I credit
G
Reversal of TRAN-II credit
H
Other reversals (pl. specify)
I
Total ITC Reversed (A to H above)
J
Net ITC Available for Utilization (6O – 7I)
In respect of Rule 37, where ITC is required to be reversed on account of  non -payment of consideration within 18

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2018-19
Table 12
ITC Reversed by mistake and  also re-availed that ITC in 2018-19
ITC Reversed in Table 12 and re-availed ITC in Table 13
Table 8 gives a bird eye view presentation of GSTR-2A reconciliation with ITC availed. It also computes the total ITC which will be lapsed in the current financial year. Following details are required in Table 8;
A
ITC as per GSTR-2A (Table 3 & 5 thereof)
B
ITC as per sum total of 6(B) and 6(H) above
C
ITC on inward supplies (other than imports and inward supplies liable to reverse charge but includes services received from SEZs) received during 2017-18 but availed during April to September, 2018
D
Difference [A-(B+C)]
E
ITC available but not availed (out of D)
F
ITC available but ineligible (out of D)
G
IGST paid on import of goods (including supplies from SEZ)
H
IGST credit availed on import of goods (as per 6(E) above)
I
Difference (G-H)
J
ITC available but not availed on import of goods (Equal to I)
K
Total ITC to

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g credit. Hence, it is stressed that working sheets must be prepared on the basis of ledger accounts/ invoice to determine and find out the exact cause of difference for initiation of remedial action either on the part of registered person or on part of suppliers of registered person.
ITC which is unavailed in GSTR-3B either on account it is ineligible or even though it was available but due to mistake, it was not claimed, it will get lapsed. Only the ITC available and not availed coming from 8E, 8F and 8J has been directed to be lapsed. ITC on reverse charge including ITC on import of service is not being reported in Table 8 and hence not being lapsed under Table 8. Merely because the said credits are not being subject to reporting purposes in Table 8 does not mean that the said credit would not lapse, if the said credit is not availed within the timelines set out in section 16(4) of CGST Act,2017.
PART IV: DETAILS OF TAX PAID AS DECLARED IN RETURNS FILED DURING THE FINANCIAL YEAR

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;               –  
 
Central Tax
                        –  
                        –  
                        –  
 
                        –  
 
State/UT Tax
                        –  
            &nb

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         –  
                        –  
 
 
 
 
Late fee
                        –  
                        –  
 
 
 
 
Penalty
                        –  
                        –  
 
 
 
 
Other
     &n

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ar
Information required in this clause is of 'tax payable' and 'tax paid' (by cash or credit). Reference is given to Table 6.1 of GSTR 3B to collect information and include it here. Table 6.1 of GSTR 3B also contains 'tax payable' and 'tax paid'. It is opined that 'actual tax paid' alone must be obtained from that Table and reported in this clause. As regards 'tax payable', the same must be in alignment with taxable turnover in Sl.No.4, particular 4M of GSTR 9. And if 'tax payable' were to be reproduced from GSTR 3B, then there would mere repetition of information without any occasion to rectify later in GSTR 9C.
Accordingly, where taxable turnover reported in GSTR 1 and GSTR 3B are in agreement with each other, there would be no 'new' tax liability being identified for the first time in GSTR 9. However, where they are not in agreement, which is often the case, taxable turnover reported in GSTR 1 and that on which tax is actually discharged through GSTR 3B may not be in agreement. It

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eturns for the months of April 2018 to September 2018
* Amendments to invoices related to 2017-18 and reported (with errors) in the GSTR 1 for 2017-18 but now reported (duly rectified) in the returns for the months of April 2018 to September 2018
* ITC availed & reversed pertaining to FY 2017-18 but reported in GSTR 3B of April 2018 to September 2018
It may be noted that Debit notes / Credit notes dated after April 1,2018 will not be reported in GSTR 9 of FY 2017-18 because the circumstances necessitating credit note and debit note would have arisen only in 2018-19.
PART VI: OTHER INFORMATION
Part VI requires following information to be provided by Registered person
15
Particulars of Demands and Refunds during FY 2017-18
16
Information on supplies received from composition taxpayers, deemed supply under section 143 and goods sent on approval basis
17
HSN Wise Summary of outward supplies
18
HSN Wise Summary of Inward supplies
19
Late fee payable and paid
Table 15 requi

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ssed in GST RFD-07 by way of adjustment of the amount of refund against the outstanding demand under the GST, then, the demand of tax before adjustment against refund of tax will form part of reporting under under the table 15E, demand of taxes.
Table 16 of GSTR 9 requires details of supplies received from composition tax payers supplies (inputs and capital goods) received from principal by the recipient (job-worker) and not returned within the time specified under section of the CGST Act,2017 and supplies received on approval basis from principal and returned to supplier within 180 days of supply.
For the financial year 2017-18, a summary of inward and outward supplies effected / made against a particular HSN code is to be reported in this Table17 & Table 18 respectively. It is optional to mention HSN code for taxpayers having annual turnover up to Rs. 1.50 crores. It will be mandatory to report HSN code at two digits level for taxpayers having annual turnover in the preceding year

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ation of ITC with GSTR-2A specifically in cases where ITC claimed in returns is higher than ITC as reflected in GSTR-2A.
* Collation of data with respect to HSN wise Inward & Outward Supplies made during the year.
It is recommended that the government may appreciate that above issues and relook the format of Annual Return to be make it more compliance friendly. It is also recommended that all the registered person and also the professionals may start the work on Annual Return so that everybody may get sufficient time to complete the same and take care of various intricacies involved in filing the same.
Reply By ARUN JAIN as =
Very helpful and detailed article
Dated: 24-11-2018
Reply By Jitender Ranka as =
NOTE FOR OPINION ON ITEMS NOT SHOWN IN GSTR1 BUT ADJUSTED IN GSTR3B
There are various issues in current GST laws and one issues arises from a deviation from earlier GST provision in treating general discounts in trade (which are related to many invoices) as sales promotion i

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ght on how to treat it in annual return:
* 1. Can the distributor show the input GST without adjusting GST in credit notes? If done so it results in sizeable refund. 2. Will GST authorities refund big amount immediately? If agreed to do so company is going to debit distributor immediately.
* Can distributor show the annual return as it is that is input GST after adjusting GST in credit notes(which he has been doing in 3B) so there would not be any refund. Then can Auditor under GST audit show the Input GST detailed computation by showing the input GST on purchases and input GST reversed on account of credit notes of company and giving all details of credit notes for period from 1st July 17 to 31st March 18. Can this become basis for FMCG company to claim out put reversal which they can show in their audit report as well.
NOTE FOR OPINION ON ITEMS NOT SHOWN IN GSTR1 BUT ADJUSTED IN GSTR3B
There are various issues in current GST laws and one issues arises from a deviation from earl

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of credit notes of company(supplier) not coming through GSTR1 return and only adjusted in 3B.
Now the opinion is sought on how to treat it in annual return:
* 1. Can the distributor show the input GST without adjusting GST in credit notes? If done so it results in sizeable refund. 2. Will GST authorities refund big amount immediately? If agreed to do so company is going to debit distributor immediately.
* Can distributor show the annual return as it is that is input GST after adjusting GST in credit notes(which he has been doing in 3B) so there would not be any refund. Then can Auditor under GST audit show the Input GST detailed computation by showing the input GST on purchases and input GST reversed on account of credit notes of company and giving all details of credit notes for period from 1st July 17 to 31st March 18. Can this become basis for FMCG company to claim out put reversal which they can show in their audit report as well?
Dated: 22-12-2018
Scholarly articles fo

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