Author: admin_gst

In Re: Shri Kailash Chandra, (Mali Construction)
GST
2018 (11) TMI 1349 – AUTHORITY FOR ADVANCE RULING, RAJASTHAN – 2018 (19) G. S. T. L. 537 (A. A. R. – GST)
AUTHORITY FOR ADVANCE RULING, RAJASTHAN – AAR
Dated:- 29-10-2018
AAR No. RAJ/AAR/2018-19/22
GST
NITIN WAPA AND HEMANT JAIN MEMBER
Present for the applicant: Shri Yash Dhadda, CA, (Authorized Representative)
Note: Under Section 100 of the CGST/RGST Act 2017, an appeal against this ruling lies before the Appellate Authority for Advance Ruling constituted under section 99 of CGST/RGST Act 2017, within a period of 30 days from the date of service of this order.
The Issue raised by Shri Kailash Chandra, (Mali Construction), situated at Mali Vas, Maandava, Mandwa, Sirohi, Rajasthan 307001 (hereinafter the applicant) is fit to pronounce advance ruling as it falls under ambit of the Section 97 (2) (a) (e) which is as given under:
a. Classification of any goods or services or both;
e. Determination of the liabil

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odel and O&M work. That the activities under ESCO model and O & M contract are so closely linked in a manner that they form a single indivisible supply. The driving factors are:
* A single tender shall be floated for Operation and Maintenance of Fluoride Control Project on ESCO Cum O&M Contract where the preamble of scope specifies that the contract combines ESCO model and O&M work.
* The nature of contract is such that initial activities under ESCO model is the main service and the other services under O&M contract combined with such service are in the nature of ancillary services which help in better operation of main activities under ESCO model and make the model successful.
c. Thus, based on above facts and concept such contract shall be a single supply and cannot be treated as distinct supplies. Since all the conditions of composite supply are satisfied, it is a composite supply.
d. Further, since composite supply of works contract has been specifically classified as supply

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applicant shall be responsible for painting, color/ white washing, distempering etc. to the pumping station building, thrice during the entire contract period.
Transmission Pipelines
The contractor shall be responsible for Patrolling, operation and maintenance of the pipelines, repairing of leakages of pipelines, replacement of burst pipes, repairing of appurtenances of pipelines like air valves, scour valves air vessels system, intermediate OHSR (for vacuum filling system), pressure gauges, joints etc.
Switchyards
He shall be responsible for replacement of transformers if required according to year 2027 designed capacity of pump sets. He shall also be responsible for painting, color/ white washing, distempering etc. to the switchyard stuff thrice during the entire contract period.
Storage Tanks (CWR)
He shall also be responsible for painting, color/ white washing, distempering etc. to the CWR, compound wall, store etc thrice during the entire contract period.
Headworks Campus

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ting of all permanent structures like pumping station building etc. are involved in the contract.
j. Based on above facts and the intent of the proposed activity, it is implied that the given work is a contract for improvement of the pumping system under the Fluoride control project, wherein transfer of property in goods in the form of new pumping machinery and mechanical/electrical equipment shall be involved in the execution of such contract.
k. That Works contract in itself is a composite supply in which construction, fabrication, completion, erection, installation, fitting out, improvement, modification, repair, maintenance, renovation, alteration or commissioning etc are involved along with transfer or property in goods.
l. Now whether a supply is a works contract or not is dependent on whether the plant or device or property is a movable or immovable property. To decide whether a property is movable or immovable, the given terms have not been defined under the Act and hence th

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as moveable and will, therefore, not be excisable goods.
p. Further, such a contract can amount to works contract in GST only if the improvement is of any immovable property. Taking references from the concepts evolved from the precedents, it is understood that the properties for which improvement works has been assigned like pump houses, storage tanks, headworks campus etc. cannot be moved from one site to another. All the components of the pumping system are erected at the prescribed location and permanently attached to the earth and they cannot be dismantled and reassembled as such dismantling may cause substantial damage to the system and its components.
Thus, according to applicant the property of improvement is an immovable property and thus the given work should be treated as works contract.
2. OUESTIONS ON WHICH THE ADVANCE RULING IS SOUGHT
Whether the activity of O & M of Fluoride control project on ESCO Model and O & M work supply of goods or supply of services and what

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rvices. Now works contract service in itself is a composite supply. The same has been defined under Schedule-Il under Entry 6 which is read under:
“6. Composite supply
The following composite supplies shall be treated as a supply of services, namely:
(a) works contract as defined in clause (119) of section 2; and
(b) supply, by way of or as part of any service or in any other manner whatsoever, of goods, being food or any other article for human consumption or any drink (other than alcoholic liquor for human consumption), where such supply or service is for cash, deferred payment or other valuable consideration.”
3. The terms and scope of the contract combines ESCO Model and O&M work. That the activities under ESCO model and O&M contract are so closely linked in a manner that they form a single indivisible supply. The driving factors are:
* A single tender is being floated for Operation and Maintenance of Fluoride Control Project on ESCO Cum O&M Contract in which preamble of s

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mp sets or as per site condition. The supply and installation of new pumping machinery and other equipments shall be done as per best engineering practice.
b. The operation and maintenance work shall be carried out of all the electrical and mechanical instruments, pumping machinery etc.
c. The pumping station and its surrounding shall be kept clean and in dry condition, properly ventilated and illuminated. For the purpose of illumination, replacement of fitting/ fixtures shall be done by the contractor, if required.
d. He shall be responsible for painting, color/ white washing, distempering etc. to the pumping station building, thrice during the entire contract period.
e. Transmission Pipelines
The contractor shall be responsible for Patrolling, operation and maintenance of the pipelines, repairing of leakages of pipelines, replacement of burst pipes, repairing of appurtenances of pipelines like air valves, scour valves air vessels system, intermediate OHSR (for vacuum filling sys

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d remote monitoring.
O&M work
The scope of work of O&M contract includes operation and maintenance of rising mains of RWSS/Clusters, OHSR and water treatment plant at Baghera.
5. It is understood based on the scope of work detailed above that ESCO model requires improvement of the whole water supply system involving pump houses, pumping stations, transmission lines, switchyards, storage tanks and headwork campus. Re-modelling of pump foundation and extension of pump house, replacement of fittings/ fixtures and painting of all permanent structures like pumping station building etc. are involved in the contract.
6. Based on above facts and the intent of the proposed activity, it is implied that the given work is a contract for improvement of the pumping system under the Fluoride control project, wherein transfer of property in goods in the form of new pumping machinery and mechanical/ electrical equipment shall be involved in the execution of such contract.
7. That Works contract in

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earth which is temporary in nature or can be shifted from part of earth to another without causing substantial damage to it cannot be treated as immovable property.
11. On the given issue, CBEC has also clarified in its circular number 58/ 1/2002-CX dated 15/ 1/2002 where in para (e) it was clarified that;-
If items assembled or erected at site and attached by foundation to earth cannot be dismantled without substantial damage to its components and thus cannot be reassembled, then the items involved not be considered as moveable and will, therefore, not be excisable goods.
12.According to definition of works contract under GST regime, the supply of goods and services are done by the supplier simultaneously which is for immovable property. Hence in works contract supply of goods and services together is compulsory.
Thus, based on above facts and concept we find that the contract shall be a single supply and cannot be treated as distinct supplies. Since all the conditions of composi

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nt or a local authority and the supply is by way of an activity in relation to functions entrusted to Municipality under Article 243W of the Constitution then no GST is applicable.
14. The activities entrusted to the Municipality under Article 243W of the Constitution of India and listed under Twelfth Schedule are enumerated as under;
[Article 243-W]
1. Urban planning including town planning.
2. Regulation of land use and construction of buildings.
3. Planning for economic and social development.
4. Roads and bridges.
5. Water supply for domestic, industrial and commercial purposes.
6. Public health, sanitation conservancy and solid waste management.
7. Fire services.
8. Urban forestry, protection of the environment and promotion of ecological aspects.
9. Safeguarding the interests of weaker sections of society, including the handicapped and mentally retarded.
10. Slum improvement and up gradation.
11. Urban poverty alleviation.
12. Provision of urban amenities and facili

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2017-CT (Rate) dated 28.06.2017, as amended from time to time.
On perusal of said Notification under S. No. 3(iii), for schedule of rate of Tax on works contract Services, following is mentioned:-
Heading 9954 (Construction services)
 
CGST Rate %
SGST Rate %
IGST Rate %
Remarks
 
(iii) Composite supply of works contract as defined in clause (119) of section 2 of the Central Goods and Services Tax Act, 2017, supplied to the Central Government, State Government, Union territory, a local authority, a Governmental Authority or a Government Entity by way of construction, erection, commissioning, installation, completion, fitting out, repair, maintenance, renovation, or alteration of, –
(a) a historical monument, archaeological site or remains of national importance, archaeological excavation, or antiquity specified under the Ancient Monuments and Archaeological Sites and Remains Act, 1958 (24 of 1958);
(b) canal, dam or other irrigation works;
(c) pipeline, conduit or

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In Re: M/s. Naga Limited
GST
2018 (11) TMI 1350 – AUTHORITY FOR ADVANCE RULING, TAMILNADU – 2018 (19) G. S. T. L. 342 (A. A. R. – GST)
AUTHORITY FOR ADVANCE RULING, TAMILNADU – AAR
Dated:- 29-10-2018
ORDER No. 18/AAR/2018
GST
MS. MANASA GANGOTRI KATA, IRS AND SHRI. S. VIJAYAKUMAR, M.SC., MEMBER
Note : Any Appeal against the Advance Ruling order shall be filed before the Tamil Nadu State Appellate Authority for Advance Ruling, Chennai under Sub-section (1) of Section 100 of CGST ACT/TNGST Act 2017 within 30 days from the date on which the ruling sought to be appealed against is communicated.
At the outset, we would like to make it clear that the provisions of both the Central Goods and Service Tax Act and the Tamil Nadu Goods and Service Tax Act are the same except for certain provisions. Therefore, unless a mention is specifically made to such dissimilar provisions, a reference to the Central Goods and Service Tax Act would also mean a reference to the same prov

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g out Milling operations in their factory premises and manufacture of food products. While clearing the imported wheat from the sea ports, the Applicant is engaging various service providers for providing services such as loading, unloading, packing, storage or warehousing of agricultural products imported for clearing from the sea ports and to bring to their factory premises. Service Providers of the above said services at certain Ports by availing the exemption as per Sl.No. 54(e) of Notification 12/2017-CT(Rate) dated 28.06.2017, do not charge GST, on the ground that such services are rendered in relation to Agricultural Products. However, in one or two Ports, the service providers of loading and unloading and warehousing who handled wheat imports feels that the GST exemption Notification for the loading, unloading, packing, storage and warehousing of agricultural produce, mentioned under the Chapter heading 9986 Serial No.54(e) of Notification No. 12/2017 Central Tax (Rate) dated 2

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exemption will cover on the market and to all stake holders. Further, they have stated that as there is no differential treatment given between indigenous Agricultural produce and imported Agricultural produce, the exemption provided in respect of the unprocessed Agricultural produce is applicable not only to cultivators but also applicable to import traders.
3. The applicant was heard in person. The applicant submitted an agreement with Karaikal Port, an Invoice for storage charges and Advance Rule of Andhra Pradesh. They stated that Wheat is agricultural produce and service of loading, unloading, storage at Ports by respective Port authorities are related to agricultural produce and hence should be exempt.
4. The contentions of the applicant were examined. We find that the Advance Ruling sought is whether the exemption under Sl.No. 54(e) of Notification No. 12/2017-C.T.(Rate) dated 28.06.2017 is applicable for imported agricultural products Viz., Wheat also. From the submissions it

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Orient Poles Versus Commissioner of GST & Central Excise, Chennai South (Vice-Versa)
Service Tax
2018 (11) TMI 1467 – CESTAT CHENNAI – TMI
CESTAT CHENNAI – AT
Dated:- 29-10-2018
ST/397/2011, ST/41867/2013 to ST/41870/2013 and ST/CO/42245 to 42248/2014, ST/42124/2013 to ST/42127/2013 and ST/Misc. /4110, 41152 – 41155, 40809/2017 – Final Order Nos. 42770-42778/2018
Service Tax
Ms. Sulekha Beevi C.S., Member (Judicial) And Shri Madhu Mohan Damodhar, Member (Technical)
Shri J. Shankar Raman, Advocate for Assessee
Shri A. Cletus, Addl. Commissioner (AR) for Revenue
ORDER
Per Bench
The issue involved in all these appeals being the same, they were heard together and are disposed by this common order. The parties herein are referred to as assessee and department for the sake of convenience.
2. The assessees are engaged in execution of contracts for erection, installation of electrical poles for street lights etc. for Government and other local bodies namely Municip

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dt. 28.4.2009
7/200 to 9/2008
Rs.50,25,591 of Service Tax under ECIS
Under section 76 & 78
ST/41867 to 41870/2013
OIA No. 191 & 192/2013 dated 12.6.2013 passed by Commissioner of Central Excise(A), Chennai On appeal against OIO No. 81 &82/2011 dated 2.9.2011
SCN No. 339/2010 dated 14.5.2010 & SCN No. 166/2011 dt. 8.4.2011
Oct. 08 to March 2009 And
April 09 to March 2010
Rs.32,45,393/-
Rs.45,33,390/- Demand is under ECIS
Under section 76 & 78
Department appeals ST/42124 – 42127/2013Against confirmation of demand under WCS
OIO No.. 187 & 188/2012 dt. 30.10.2012
SCN No. 290/2011 dt. 25.8.2011 andSCN No. 88/2012 dt. 4.4.2012
April 2010 to March 2011
Apr. 11 to Sep. 11
Rs.27,79,551/-
Rs.33,02,028/-
 
3. On behalf of the assessee, ld. counsel Shri J. Shankar Raman submitted that in Appeal No. ST/397/2011, the period involved is from July 2007 to September 2008 and the demand made in the show cause notice is under erection, commissioning and installation services. As

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ave been under ECIS and not under works contract service. He relied upon the decision of the Tribunal in the case of Real Value Promoters Ltd. (supra) and argued that the entire contracts are composite in nature involving both supply of materials and rendering of service. The Tribunal in the said case has held that after 1.6.2007, the demand of service tax on such composite contracts can be leviable only under works contract service. Therefore, the demands cannot sustain.
4. The ld. AR Shri A. Cletus supported the grounds in the appeals filed by the department.
5. After hearing both sides, it is brought to light that the period involved in the present case is July 2007 to September 2011. The demand has been raised in the show cause notice under ECIS. The contract entered between the appellant and the service recipient is a composite contract which involves both supply of materials as well as rendering of service. The Tribunal in the case of Real Value Promoters Ltd. (supra) had occas

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ommercial or industrial construction service, construction of complex service and in addition turnkey projects including EPC projects within the definition of Works Contract Service.
7.9 At this juncture, it is worthwhile to reproduce excerpts from the Union Finance Minister's budget speech in 2007:-
“State Governments levy a tax on the transfer of property in goods involved in the execution of a works contract. The value of services in a works contract should attract service tax. Hence, I propose to an optional composition scheme under which service tax will be levied at only 2 per cent of the total value of the words contract”.
7.10 The issue was analyzed by the Hon'ble Apex Court in Larsen & Toubro case (supra) and held that there can be no levy of service tax on composite contracts (involving both service and supply of goods) prior to 1.6.2007. This read together with the budget speech as above would lead to the strong conclusion that composite contracts were brought within the

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pecialibus non derogant' – 'general things do not derogate special things'. The counsel for appellants have submitted that as per Section 65A of the Act ibid, classification of service shall be based on the specific entries and the more specific description of service has to be preferred. He invited our attention to CBEC‟s Circular 128/10/2010 dated 24.8.2010 which is reproduced as under:-
“The matter has been examined. As regards the classification, with effect from 1-6-2007 when the new service 'Works Contract service' was made effective, classification of aforesaid services would undergo a change in case of long term contracts even though part of the service was classified under the respective taxable service prior to 1-6-2007. This is because 'works contract' describes the nature of the activity more specifically and, therefore, as per the provisions of Section 65A of the Finance Act, 1994, it would be the appropriate classification for the part of the service provided after

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1994. The SCN did mention this in the first para itself. However, the proposal for tax demand was specifically made under Commercial or Industrial Construction Service under Section 65 (105) (zzq) of the Finance Act, 1994. In such situation, we note that it cannot be a case of simple mentioning of wrong provisions of law as submitted by the Revenue. Apparently, the tax liability of composite works contract is to be considered under works contract services only as per legal position settled by the Hon'ble Apex Court in M/s L&T Limited. Even in the appeal, the Revenue submitted that the respondent were engaged in construction services liable to tax under tax entry Section65(105) (xxq). The grievance of the Revenue is with reference to commercial nature of the construction undertaken by the respondent and not on the correct classification of taxable activity.”
b. In the case of Skyway Infra Projects Pvt. Ltd. Vs. Commissioner of Service Tax, Mumbai – 2018-TIOL-360-CESTAT-MUM, in res

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ties are accepting the facts that the contracts executed by the appellant are nothing but works contracts, for the period in question, entire case of the Revenue in the show-cause notice stands demolished by the Apex Court in the case of Larsen & Toubro Ltd. (supra). In the said judgment, their Lordships have very categorically laid down the law that the works contract cannot be vivisected for the confirmation of demand under various other services. On this ground itself, the entire demand confirmed by the adjudicating authority is liable to be set aside and we do so.”
c. In the case of URC Construction (P) Ltd. Vs. Commissioner of Central Excise, Salem – 2017 (50) STR 147, the Tribunal in paragraphs 9, 10 and 11 has held as under:-
“9. The Hon'ble Supreme Court in re Larsen & Toubro & Ors. has decided thus
'24. A close look at the Finance Act, 1994 would show that the five taxable services referred to in the charging Section 65(105) would refer only to service contracts simpliciter

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of the works contract the value of properly in goods transferred in the execution of a works contract.'
10. In view of this specific decision and the admitted claim of the appellant that they are not providers of 'commercial or industrial construction service' but of 'works contract service', no tax is liable on construction contracts executed prior to 1st June, 2007.
11. Insofar as demand for subsequent period till 30th September, 2008 is concerned, it is seen that neither of the two show cause notices adduce to leviability of tax for rendering 'works contract service'. On the contrary, the submission of the appellant that they had been providing 'works contract service' had been rejected by the adjudicating authority. Therefore, even as the services rendered by them are taxable for the period from 1st June, 2007 to 30th September, 2008 the narrow confines of the show cause notices do not permit confirmation of demand of tax on any service other than 'commercial or industrial constr

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ories and not under Works Contract service. The demand confirmed in the impugned order under these categories namely under construction service for the period 10.09.2004 to 16.06.2005 under CICS for the period 16.06.2005 to 30.09.2008 cannot also sustain and are therefore set aside. So ordered
5.3 For the period 01.04.2008 to 30.09.2008, the demand confirmed is Rs. 26,88,611/-. We note that the appellant has not contested the liability under works contract for this period. The only argument brought forth by the Ld. Counsel is that they have discharged an amount of around Rs. 82 lakhs under this category after the visit of the departmental officers and therefore an amount of Rs. 36,88,611/- demanded in the impugned order should be considered as having been discharged. We find merit in his argument and hence the demand of Rs. 26,88,611/- under works contract service for the period 01.04.2008 to 30.09.2008 is required to be considered as having been paid, albeit subsequent to the visit o

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impliciter.
c. For activities of construction of new building or civil structure or new residential complex etc. involving indivisible composite contract, such services will require to be exigible to service tax liabilities under 'Works Contract Service' as defined under section 65(105)(zzzza) ibid.
d. The show cause notices in all these cases prior to 1.6.2007 and subsequent to that date for the periods in dispute, proposing service tax liability on the impugned services involving composite works contract, under 'Commercial or Industrial Construction Service' or 'Construction of Complex' Service, cannot therefore sustain. In respect of any contract which is a composite contract, service tax cannot be demanded under CICS / CCS for the periods also after 1.6.2007 for the periods in dispute in these appeals. For this very reason, the proceedings in all these appeals cannot sustain.”
5. Following the above decision, we are of the considered opinion that the demand of service tax under

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Commissioner of GST & CE Chennai South Versus Redington (India) Ltd.
Service Tax
2018 (11) TMI 1468 – CESTAT CHENNAI – TMI
CESTAT CHENNAI – AT
Dated:- 29-10-2018
Application No. ST/MISC/40793/2017 Appeal No. ST/330/2012 – FINAL ORDER No. 42883/2018
Service Tax
Ms. Sulekha Beevi C.S. Member (Judicial) And Shri Madhu Mohan Damodhar, Member (Technical)
Shri S. Govindarajan, AC (AR) For the Appellant
Shri C. Manickam, Sh. Ajay Kumar Gupta, Advocate & Shri D. Senthil Nathan, Consultant For the Respondent
ORDER
Per Bench
Brief facts are that the respondents, M/s. Redington (India) Ltd are engaged in the business of distributing computer hardware and software of various manufacturers such as M/s. Hewlett Packard, IBM, Microsoft, etc. They are also engaged in maintenance and repair for these products during the warranty period as well as post warranty period. On intelligence that the respondents are not paying service tax on services rendered to M/s. Hewlett Packa

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as inventory reports on weekly basis to HP.
2. From the foregoing it appeared that respondents as distributors were receiving 1% volume discount on the total turnover made, in respect of HP Products and that this was not a trade or sales discount but a commission for providing HP with strategic market information to enable them to maximize the sales of HP products wherever required. The department was of the view, that respondent were providing Business Auxiliary Service to M/s. HP. Therefore a Show Cause Notice was issued proposing to demand the service tax alongwith interest and for imposing penalties. After due process of law, the original authority dropped the proceedings holding that 1% discount is not consideration received for rendering services and hence not taxable. Aggrieved, the department is now before the Tribunal.
3. The Ld.AR, Sh.S.Govindarajan reiterated the grounds of appeal. He submitted that the findings of the adjudicating authority that respondents are not rende

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ing or sale of goods produced or provided by or belonging to the client would fall under the category of Business Auxiliary Service. Therefore when the respondents are furnishing strategic inventory reports on weekly basis, in a format specified by HP, the same is service incidental or auxiliary or promotion or marketing or sale of goods produced by HP and the 1% discount received by the respondents from HP is chargeable to service tax under Business Auxiliary Service. It is submitted that in a similar case involving M/s.HP and the respondent pertaining to the 1% discount offered to the dealer / distributor as in the present case, the CESTAT, Bangalore [2003(162) ELT 399(T)] considered the issue of includibility of the said 1% additional discount paid to the assesse as a distributor / dealer in the assessable value of the excisable goods manufactured by M/s.HP. In the said case, the Hon'ble Tribunal held that the reports sent by the dealers, are in the nature of market intelligence, wh

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he basis of reports and inventory reports submitted to M/s.HP. The adjudicating authority has rightly dropped the proceedings finding that the respondent was neither commission agent nor was rendering any Business Auxiliary Service. The relationship between the respondent and M/s.HP is that of manufacture and buyer and merely because an inventory report is furnished to the manufacturer in regard to the sale of goods, it cannot be said that the appellant has rendered any services to M/s.HP. The decision of the Tribunal, Bangalore rendered in 2003 (162) E.L.T.399 (Tri.-Bang) relied in the grounds of appeal by the department, has held that the 1% discount does not fall in category of permissible discount to be excluded from the assessable value of goods manufactured by HP in terms of Section 4 of Central Excise Act, 1944. For this very same reason, the said discount, if any, has to be included in the assessable value by the manufacturer namely M/s.HP Ltd. Thus the discount is subject to p

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t, 1994 ―Business Auxiliary Service‖ means any service in relation to –
(i) promotion or marketing or sale of goods produced or provided by or belonging to the client; or
(ii) promotion or marketing of service provided by the client; or
(iii) any customer care service provided on behalf of the client; or
(iv) … … … … … … … … …
(v) … … … … … … … … …
(vi) provision of service on behalf of the client; or
(vii) a service incidental or auxiliary to any activity specified in sub-clauses (i) to (vi), such as billing, issue or collection or recovery of cheques, payments, maintenance of accounts and remittance, inventory management, evaluation or development of prospective customer or vendor, public relation services, management or supervision, and includes services as a commission agent, but does not include any activity that amounts to manufacture of excisable goods.
Explanation.- For the removal of doubts, it is hereby declared

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s value, then such value shall, –
(i) in a case where the provision of service is for a consideration in money, be the gross amount charged by the service provider for such service provided or to be provided by him;
(ii) in a case where the provision of service is for a consideration not wholly or partly consisting of money, be such amount in money as, with the addition of service tax charged, is equivalent to the consideration;
(iii) in a case where the provision of service is for a consideration which is not ascertainable, be the amount as may be determined in the prescribed manner.
(2) Where the gross amount charged by a service provider, for the service provided or to be provided is inclusive of service tax payable, the value of such taxable service shall be such amount as, with the addition of tax payable, is equal to the gross amount charged.
(3) The gross amount charged for the taxable service shall include any amount received towards the taxable service before, during or a

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ed or produced, under the provisions of the Central Excise Act, 1944, as amended. For the purpose of working out the duty of excise chargeable on any excisable goods, as per Section 4 of the Central Excise Act, inter alia, such value shall –
(a) in a case where the goods are sold by the assessee, for delivery at the time and place of the removal, the assessee and the buyer of the goods are not related and the price is the sole consideration for the sale, be the transaction value;
(b) in any other case, including the case where the goods are not sold, be the value determined in such manner as may be prescribed.
6.5 For the removal of doubts, Explanation to Section 4 (1) declares that that the price-cum duty of the excisable goods sold by the assessee shall be the price actually paid to him for the goods sold and the money value of the additional consideration, if any, following directly or indirectly from the buyer to the assessee in connection with the sale of such goods, and such p

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Excise duty is brought about in Central Excise Valuation Rules, 2000. So also, Service Tax (Determination of Value) Rules, 2006 have been introduced vide Notification No.12/2006-ST dt. 19.4.2006.
6.8 The important takeaway from these discussions on the differing nature of assessable value, one for the purpose of levy of Central Excise duty and the other for levy of service tax, is that they are two different and distinct entities. This indeed has to be so, since the purpose of levy of central excise duty is to levy tax on production or manufacture of excisable goods in India whereas service tax is a levy on service, which by its very intrinsic nature cannot then be an activity amounting to “manufacture” and subject to Central Excise levy.
6.9 The basic nature of service tax was dealt with by the Hon'ble Apex Court in the case of All India Federation of Tax Practitioners Vs UOI – 2007 (7) STR 625 (S.C.) wherein it was inter alia held as under :
“8. As stated above, service tax is VA

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s and consumption of services are similar as they both satisfy human needs. Today with the technological advancement there is a very thin line which divides a “sale” from “service”. That, applying the principle of equivalence, there is no difference between production or manufacture of saleable goods and production of marketable/saleable services in the form of an activity undertaken by the service provider for consideration, which correspondingly stands consumed by the service receiver. It is this principle of equivalence which is inbuilt into the concept of service tax under the Finance Act, 1994. That service tax is, therefore, a tax on an activity. That, service tax is a value added tax. The value addition is on account of the activity which provides value addition, for example, an activity undertaken by a chartered accountant or a broker is an activity undertaken by him based on his performance and skill. This is from the point of view of the professional. However, from the point

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dered to be a service and subjected to service tax. In fact, the process amounting to “manufacture” is kept specifically out of the scope of Section 65 (19) of Finance Act, 1994 which prescribes service tax liability on processing of goods not amounting to manufacture.
6.11 It has been consistently laid down by the Tribunal, in a plethora of decisions, that consideration which is subject to payment of excise duty is not liable for payment of service tax liability. Some of such decisions, correctly cited by the Ld. Advocate for respondents, are as under :
1) Allengers Medical Systems Ltd. Vs CCE Chandigarh 2009 (14) STR 235 (Tri.-Del.)
2) Alidhara Texspin Engineers Vs CCE & Customs, Vapi 2010 (20) STR 315 (Tri.-Ahmd.)
3) Sharma and Associates Firetech Pvt. Ltd. Vs CCE Indore 2017 (51) STR 289 (Tri.-Del.)
4) Vidarbha Grindeers (P) Ltd. Vs CCE Nagpur 2015 (40) STR 331 (Tri.-Mumbai)
In Jubiliant Industries Vs CCE Ghaziabad – 2013 (31) STR 181 (Tri.-Del.), the Tribunal categorically h

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the Hon'ble Apex Court on 06.02.2004 [2004 (167) ELT A137 (SC)]. The department should have taken precautionary measures to issue periodical SCNs on the very same issue from time to time pending final decision in the matter. This being the case, we are unable to fathom the how and why of the department having taken a stand contrary to that settled by the Hon'ble Apex Court on 06.02.2004 and deemed it proper to issue a SCN taking an antipodal and opposite proposition. Unless the said judgment of the Supreme Court has been further reviewed, or for that matter, the ratio laid down had been overturned by the Hon'ble Apex Court itself, which is certainly not the case here, there is no justification for the department to have initiated the impugned proceedings. In our view, seeking to tax a particular commission amount under excise duty on the one hand, and in respect of the identical transaction, demanding service tax liability on the very same amount, is nothing but an exercise in incredul

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take support of the decision of Hon'ble CESTAT in the case of M/s.Pratap Singh & Sons Vs Commissioner of Central Excise, Mumbai-I, as reported in 2007 (5) STR 389 (Tri-Mumbai), wherein it was held as follows :
5. The appellant have purchased and sold from the principals as their distributor. On purchase of the goods, the ownership changes to the appellant and as owner, dealer or transferee of the goods, it was in his own interest to promote the sales activities and to make advertisement and keep the trained salesman and hence, they are part of the dealers job. This cannot be treated as service rendered to the principals namely the manufacturers. If there was any special relationship or additional consideration leading to charging of lower price to the appellant, at the most, it can become an issue relating to valuation of the goods. The discount given by the manufacturer cannot be taken as service charges. The decision of the Commissioner (Appeals) in treating the appellant as provid

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COROMANDEL AGRICO PVT LTD THROUGH ALPANA YAGNESH BAKTARWALA Versus COMMERCIAL TAX OFFICER
GST
2018 (12) TMI 1578 – GUJARAT HIGH COURT – [2019] 63 G S.T.R. 1 (Guj), 2019 (26) G. S. T. L. 460 (Guj.)
GUJARAT HIGH COURT – HC
Dated:- 29-10-2018
R/Special Civil Application No. 16731 of 2018
GST
Mr. Justice Akil Kureshi And Mr. Justice Umesh Trivedi
For the Petitioner : Mr D K Trivedi
For the Respondent : Advance Copy Served to Government Pleader/PP, DS AFF.Not Filed (N), Notice Not Recd Back
ORAL ORDER
(PER : HONOURABLE MR.JUSTICE AKIL KURESHI)
1. Draft amendment is allowed.
2. The petitioner has challenged an order of attachment dated 09.10.2018 passed by the respondent authorities attaching the petitioner's plant, machinery and present stock situated at the said plant. The petitioner is in the business of manufacturing agrochemicals.
3. The facts admitted by the petitioner are that the petitioner could not discharge its GST liabilities for the past several mont

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perate its factory since the date of passing of the order. The petitioner would not be able to pay its creditors and the workers their dues. The petitioner offered to clear all the taxes in installments.
6. Learned AGP Shri Trivedi opposed the petition contending that the petitioner has not paid the selfassessed tax. Such tax has been collected from the purchasers. The petitioner cannot press financial hardship in depositing such tax with the Government revenue. The authorities have rightly exercised powers under Section 83 of the Act to protect the interest of Government revenue.
7. In the facts of the case, we would like to find a way out of the impasse so that the petitioner can restart its manufacturing activities and start repaying the Government dues. In this context, few things become relevant. Firstly, according to the petitioner, the outstanding dues are in the vicinity of Rs. 64.00 Lacs. This does not account for possible interest or penalty or late payment charges. The pet

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a further sum of Rs. 5.00 Lacs latest by 12.11.2018.
(II) The remaining amount, as per the petitioner's declaration, would be cleared in
Three Equal Monthly installments. The first one of them starting from the month of December 2018. Each installment shall have to be deposited by the Fifth of the month.
(III) The Director of the petitioner Company would file an Undertaking before this Court latest by 02.11.2018 that all these conditions would be fulfilled.
9. The attachment on the petitioner's stock, under the impugned order dated 09.10.2018, shall stand suspended. In other words, while maintaining the attachment on the plant and machinery, we permit the petitioner to carry out its manufacturing activities and clear the manufactured goods. Upon breach of any of the above condition nos.(I), (II) or (III), including failure to deposit any of the installments, such restrictions shall stand restored.
10. The petitioner shall cooperate with the proceedings for assessment or any oth

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IGST Export Refunds – extension in SB005 alternate mechanism and revised processing in certain cases including disbursal of compensation Cess
PUBLIC NOTICE N0. 137/2018/ 30.10.2018 Dated:- 29-10-2018 Trade Notice
Customs
OFFICE OF COMMISSIONER OF CUSTOMS (Export)
NEW CUSTOM HOUSE, BALLARD ESTATE, MUMBAI-400 001
Email : Drawback.nch@gov.in
F. No. S/26.Misc-12/2018-19 IGST Refund
Date: 29.10.2018
PUBLIC NOTICE N0. 137/2018/ 30.10.2018
Sub: reg.
Attention of the trade is invited to Board's Circular No. 40/2018-Customs issued vide F. No. 450/119/2017-cus IV dated 24th October 2018.
1. Exporters are availing the refunds of IGST paid on exports regularly for more than a year now. It has been observed that exporters have committed many errors which have hampered sanctioning of IGST refund. CBIC has introduced several options and alternative mechanisms through which various mismatch errors between the Shipping Bill (SB) and GSTR 1 data can be handled in the system.
2. CB

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d that the exporters shall have to take care to ensure the details of invoice, such as invoice number, IGST paid etc. under GSTR 1 and shipping bill match with each other since the same transaction is being reported under GST laws and Customs Act.
3. It may be noted that SBS which have not been scrolled due to the IGST paid amount erroneously declared as 'NA' are already being handled through officer interface as per Board's Circular 08/2018 – Customs dated 23.03.2018. However, no such provision was hitherto available in respect of those SBS which were successfully scrolled, albeit with a lesser than eligible amount.
4. CBIC has been receiving representations where the refund scroll has been generated for a much lesser IGST amount than what has actually been paid against the exported goods. Broadly, this has happened due to:
a. Error made by the exporter/CHA in declaring the IGST paid amount in SB or,
b, cases where compensation cess paid amount was not entered by th

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unt, the exporter is required to submit a duly filled and signed Revised Refund Request (RRR) annexed to this circular to the designated AC/DC. A scanned COPY Of the P.P.R may also be mailed to dedicated email address of Customs locations from where exports, took place, The designated/concerned AC/DC will then proceed to sanction the amount after due verification through the option provided in ICES, a detailed advisory on which Will be communicated by DG Systems to all the System Managers shortly. Once the revised amount is approved by the designated AC/DC in the system, a fresh scroll will be available for generation for the differential amount only.
7. It may be noted that only those SBS which have already been scrolled shall be available in this facility, Further, this facility can be used only once for each eligible SB to sanction the revised IGST amount, Thus, utmost care may be taken by the exporter while submitting the RRR as no further provision will be available for revising

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B2B Travel Agent
Query (Issue) Started By: – sarang takalkar Dated:- 27-10-2018 Last Reply Date:- 30-10-2018 Goods and Services Tax – GST
Got 3 Replies
GST
Respected,
When travel agent deals in B2B category, there is double taxation
Supplier pays GST and again the agent pays GST on total amount.
Is there any clarification ?
thanks,
Reply By DR.MARIAPPAN GOVINDARAJAN:
The Reply:
Supplier pays tax the supply provided by him. Agent pays GST for the commission obtained for his

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Strike Delays Goods Delivery, Questions Arise Over Constitutionality of Sections 129 & 130 of GST Rules.
Case-Laws
GST
E-way bill – Goods did not reach destination within prescribed time on a

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Fertility Program Costs for Milk Animals Classified as Revenue Expenditure, Eligible for Income Tax Deduction.
Case-Laws
Income Tax
Nature of expenditure – fertility improvement program among

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Implication of GST on Transfer of Business – At Glance
By: – Dinesh Kumar
Goods and Services Tax – GST
Dated:- 27-10-2018

1. Prologue
Corporate Restructuring through amalgamation, arrangement, mergers, acquisition and takeover has become vital to corporate strategy to day. To attain accelerated growth, corporate in India now a days resort more towards restructuring strategies. The Goods and Services Tax (GST) has been envisaged as an efficient tax system and it affects the structuring of the various operations in India. Corporate transaction in pursuance of amalgamation, arrangement, mergers, acquisition and takeover are also affected by GST. Thus, the industries are required to analyse the provisions of the GST Law and its impact on their business.
2. Registration
Registration of any business entity under the GST Law implies obtaining a unique number from the concerned tax authorities for the purpose of collecting tax on behalf of the government and to avail Input t

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ates that in case of change of constitution of a registered taxable person on account of sale, merger, demerger, amalgamation, lease or transfer of business, the registered person would be allowed to transfer the unutilized input tax credit to transferor. In this context, the registered person is required to furnish the details of sale, merger, de-merger, amalgamation, lease or transfer of business in Form GST ITC-02 electronically on the Common Portal along with a request to transfer the unutilized input tax credit lying in his electronic credit ledger to the transferee. The transferee would accept the details so furnished by the transferor on the Common Portal and, upon such acceptance, the unutilized credit would be credited to his electronic credit ledger.
In the case of demerger, the input tax credit would be apportioned in the ratio of the value of assets of the new units as specified in the demerger scheme.
4. Itemised Sales
Where assets and liabilities of a business are tran

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to be treated as supply of goods or supply of services as referred to in Schedule II. Accordingly, transfer of business assets is supposed as supply.
The transfer of business is amounted to transfer of a part of the assets and not the whole business. Moreover, para 4(c) of the schedule II specifies that in case business is transferred as a going concern then it would not constitute as supply. However, in pursuance of Notification No. 12/2017 Central tax (rate) dt 28.06.2017 services, which are provided by way of transfer of a going concern as a whole or an independent part thereof, are exempted from GST. Thus, no GST would applicable on slump sale transaction as transfer of business on a going concern basis.
6. Liability of companies w.r.t. order of court or Tribunal
According to section 87 of the CGST Act, when two or more companies are amalgamated or merged in pursuance of an order of court or of Tribunal or otherwise and the order is to take effect from a date earlier to the dat

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on the sale of securities.
8. Summing Up
Goods and Services Tax have impact on each and every industry and business in India. Transfer of business under mergers, amalgamation and acquisitions do not attract any tax liability under GST regime, they are unlikely to impacted by indirect taxation. For calculating the Capital gains, the holding period is calculated from the date of original purchase of shares. The companies who opt for merger and acquisition, the liability to register arises on the date of transfer for transferee of a business as going concern. Further, GST Law stipulates transfer or sale of business assets can take place either as a slump sale or itemized sale. In case of change of constitution of a registered person on account of sale, merger, demerger etc, the unutilized ITC would be allowed to be transferred to transferee. Thus, GST Law brought the immense clarity on the taxability of business transfer and related aspect thereof.
Reply By Dinesh Tambde as =
In case

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RECENT ADVANCE RULINGS IN GST (PART-8)
By: – Dr. Sanjiv Agarwal
Goods and Services Tax – GST
Dated:- 27-10-2018

Advance rulings are important in any tax law as it provides a forum for clarification and possible interpretation of statutory provisions. Moreover, it conveys the legislative intention from the revenue's view point. Provisions of advance ruling are contained in section 95 to 106 of CGST Act, 2017 and State / UT GST enactment. Rules 103 to 107 of also provide for forms, manner, certification etc.
The Authority for Advance Rulings (AAR) have been set up in all the states and we have now over 200 advance rulings on different issues already pronounced by various State Authorities. The appellate mechanism for filing appeals against AAR rulings is also in place and we have about twenty such appellate orders confirming or modifying the AAR orders. One major issue presently being faced is about multiple authorities (equal to number of States), each pronouncing a ru

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whether this comes under 18% or exempted or any other taxes category?
In the instant case, on verification of record submitted by jurisdictional authority, it was found that proceedings were initiated well before filing of application before AAR and applicant himself admitted that they had preferred writ petition before High Court on same issue which was pending for disposal. The AAR ruled that the application did not qualify pre-requisitions for admission as per section 98(2) of CGST Act, 2017.
[Crux Bio Tech India (P.) Ltd., In re. ((2018) 6 TMI 462 (AAR- Andhra Pradesh);]
Advance ruling on issue not within the scope of authority
Where the applicant was engaged in the manufacture of textile yarn and it approached AAR to specify the complete procedure for supplies by DTA to Advance Authorization Holder and specify the applicability of Foreign Trade Policy 2015 2020 mid-term review and specify procedure for procuring goods from DTA against Advance Authorization.
It was observed t

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olicy 2015-2020 mid-term review and the related procedure. The applicant had sought a ruling for applicability of Foreign Trade Policy which was clearly beyond the ambit of Authority for Advance Ruling. Thus, the application was held to be not worthy of admission.
Thus, the application filed by the applicants, being beyond the scope of section 97(2), merit rejection at the stage of admission itself and was rejected.[Spentex Industries Ltd., In re, (2018) 8 TMI 285 (AAR- Madhya Pradesh); ].
Advance ruling on applicability of notifications and circulars not issued under CGST Act, 2017
Where the applicant had sought advance ruling on applicability of Notification dated 5.10.2017 issued by DIPP, Ministry of Commerce and Industry read with CBEC Circular No. 1060/9/2017-Cx. Dated 27th November 2017 in following situations:
* If the assessee takes over an eligible unit as a going concern under slump sale agreement and there is a change in the ownership of the unit which was availing the

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Doubt on GST on income on Service to Foreign company
Query (Issue) Started By: – Kailash Sahoo Dated:- 27-10-2018 Last Reply Date:- 30-10-2018 Goods and Services Tax – GST
Got 5 Replies
GST
Dear Expert,
I am a small proprietorship firm and my job is to supply services to my client based out in USA. My work nature of work is recruitment and I supply service by recruiting candidate for my client in USA. the candidates are in USA and the job requirements also in USA. I have a small team here and the entire income spend on my employees salary, and other office expenses.
So my doubt: is there any GST on consulting fees which I am receiving from my client in USA?
Reply By KASTURI SETHI:
The Reply:
GST is consumption based tax. Se

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l be treated as 'inter state supply', so GST will be levied as per sec 5 of IGST.
am here directing you to check whether it is qualify as 'export of service'​​, if it qulaified as export of serive then it will be treated as 'Zero rated supply' as per sec 16 of IGST.
if it is zero rated, follow either of options given in same section.
dear experts am looking forward to your earliest response in this regard.
Thanks.
​​​​​
Reply By KASTURI SETHI:
The Reply:
Sh.Vamsi Krishna Ji,. Actually I was emphasising that it is export of service. There is no doubt that export of goods or services is inter-State supply. Procedure detailed by you is correct. I should have mentioned and

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Notifies the persons whose registration under the said Act has been cancelled by the proper officer on or before the 30th September, 2018 furnish the final return in FORM GSTR-10 of the said rules till the 31st December, 2018.
58/2018-State Tax Dated:- 27-10-2018 Himachal Pradesh SGST
GST – States
Himachal Pradesh SGST
Himachal Pradesh SGST
Government of Himachal Pradesh
Excise and Taxation Department
No. EXN-F(10)-31/2018
Dated: Shimla-2 the 27th October, 2018
Notification No

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The Karnataka Goods and Services Tax (Eleventh Amendment) Rules, 2018.
(04-U/2017) No. FD 47 CSL 2017 Dated:- 27-10-2018 Karnataka SGST
GST – States
Karnataka SGST
Karnataka SGST
FINANCE SECRETARIAT
NOTIFICATION(4-U/2017)
No. FD 47 CSL 2017, Bengaluru dated: 27/10/2018
In exercise of the powers conferred by Section 164 of the Karnataka Goods and Services Tax Act, 2017 (Karnataka Act 27 of 2017), on the recommendation of the GST Council, the Government of Karnataka hereby makes the following rules further to amend the Karnataka Goods and Services Tax Rules, 2017, namely: –
RULES
1. Title and commencement.-(1) These rules may be called the Karnataka Goods and Services Tax (Eleventh Amendment) Rules, 2018.
(2) They shall c

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dated 23rd October 2017, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R 1321 (E), dated 23rd October, 2017; or
(b) availed the benefit of Government of India Notification No. 78/2017-Customs, dated 13th October 2017, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R 1272 (E), dated 13th October 2017 or Government of India Notification No. 79/2017 -Customs, dated 13th October 2017, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R 1299 (E), dated 13th October, 2017, the refund of input tax credit, availed in respect of inputs received under the said Notifications for export o

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of Karnataka Notification (40/2017) No. FD 48 CSL 2017 dated 23rd October 2017, published in the Karnataka Gazette, Extraordinary, Part-IVA, No. 974, dated 23rd October 2017 or Government of India Notification No. 41/2017-Integrated Tax (Rate), dated 23rd October 2017, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R 1321 (E), dated 23rd October 2017 has been availed; or
(b) availed the benefit under Government of India Notification No. 78/2017-Customs, dated 13th October 2017, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R 1272 (E), dated 13th October 2017 or Government of India Notification No. 79/2017-Customs, dated 13th Oct

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The Karnataka Goods and Services Tax (Tenth Amendment) Rules, 2018.
(04-T/2017) No. FD 47 CSL 2017 Dated:- 27-10-2018 Karnataka SGST
GST – States
Karnataka SGST
Karnataka SGST
FINANCE SECRETARIAT
NOTIFICATION(4-T/2017)
No. FD 47 CSL 2017, Bengaluru, dated: 27/10/2018
In exercise of the powers conferred by Section 164 of the Karnataka Goods and Services Tax Act, 2017 (Karnataka Act 27 of 2017), on the recommendation of Goods and Services Tax Council, the Government of Karnataka hereby makes the following rules further to amend the Karnataka Goods and Services Tax Rules, 2017, namely: –
RULES
1. Title and commencement.-(1) These rules may be called the Karnataka Goods and Services Tax (Tenth Amendment) Rules, 2018.
(2) Th

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Karnataka Gazette, Extraordinary, Part-IVA, No. 974, dated 23rd October 2017 or Government of India Notification No. 41/2017-Integrated Tax (Rate), dated 23rd October 2017, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R 1321 (E), dated 23rd October 2017 or Government of India Notification No. 78/2017-Customs, dated 13th October 2017, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i),vide number G.S.R 1272 (E), dated 13th October 2017 or Government of India Notification No. 79/2017-Customs, dated 13th October 2017, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R 1299 (E)dated 13th October 201

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IGST Exports Refunds – extension in SB005 alternate mechanism and revised processing in certain cases including disbursal of compensation Cess
PUBLIC NOTICE NO. 35/2018 Dated:- 27-10-2018 Trade Notice
Customs
GOVENMENT OF INDIA
MINISTRY OF FINANCE, DEPARTMENT OF REVENUE
OFFICE OF THE PRINCIPAL COMMISSIONER OF CUSTOMS (AIR CARGO), CHENNAI-VII COMMISSIONERATE,
NEW CUSTOM HOUSE, MEENAMBAKKAM, CHENNAI-600 027.
F. No.: S.Misc.230/2018-EXP.(Air)
Dated: 27.10.2018
PUBLIC NOTICE NO. 35/2018
Sub: Reg.
Attention of Exporters / Customs Brokers / Steamer Agents / other Stakeholders and the Trading Public is invited to the Board Circular No 40/2018-Customs dated 24.10.2018, wherein error of the refund scroll has been Generated for a much lesser IGST amount than what has actually been paid against the exported goods is discussed. Board has issued Circular Nos. 05/2018-Customs dated 23.02.2018, 08/2018-Customs dated 23.03.2018, 15/2018-Customs dated 06.06.2018 and 22/2018-Customs d

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ing bill match with each other since the same transaction is being reported under GST laws and Customs Act.
2. It may be noted that SBS which have not been scrolled due to the IGST paid amount erroneously declared as 'NA' are already being handled through officer interface as per Board's Circular 08/2018-Customs dated 23.03.2018. However, no such provision was hitherto available in respect of those SBS which were successfully scrolled, albeit with a lesser than eligible amount.
3. Board has been receiving representation where the refund scroll has been generated for a much lesser IGST amount than what has actually been paid against the exported goods. Broadly, this has happened due to:
a. Error made by the exporter/CHA in declaring the IGST paid amount in SB or,
b. Cases where Compensation Cess paid -amount was not entered by the exporter in the SB along with IGST paid amount or the same details were not transmitted by GSTN, and the scroll consequently got generated o

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differential amount, the exporter is required to submit a duly filed and signed Revised Refund Request (RRR) annexed to this Public Notice to the Assistant Commissioner(IGST Refunds), Air Cargo Complex, New Custom House, Chennai-VII Commissionerate. A scanned copy of the RRR may also be mailed to dedicated email address of Customs locations from where exports took place. The concerned AC/DC will then proceed to sanction the revised amount after due verification through the option provided in ICES. Once the revised amount is approved by the designated AC/DC in the system, a fresh scroll will be available for generation for the differential amount only.
6. It may be noted that only those SBS which have already been scrolled shall be available in this facility. Further, this facility can be used only once for each eligible SB to sanction the revised IGST amount. Thus, utmost care may be taken by the exporter whiloe submitting the RRR as wel as the sanctioning officer while sanctioning th

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Refund Claims Under GST: Process After Deficiency Memo and Re-crediting for EPCG Scheme Exporters Explained.
Circulars
GST
Clarification on certain issues related to refund – Status of refu

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CBIC Releases Guidelines for Processing GST Registration Cancellation Applications in FORM GST REG-16 to Ensure Consistency.
Circulars
GST
Processing of Applications for Cancellation of Regis

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Clarifications on GST Rules for Casual Taxable Persons and Correcting Excess Input Tax Credit Distribution Procedures.
Circulars
GST
Clarifications of issues under GST related to casual taxab

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Guidance on Issuing Credit and Debit Notes for Returns under GST: Focus on Time-Expired Drugs and Medicines.
Circulars
GST
Return of goods under GST – When to issue Credit note / Debit Note a

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Final CGST Return Deadline: Submit FORM GSTR-10 by December 31 if registration was canceled by September 30, 2018.
Notifications
GST
Central Government notifies the persons whose registration

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Deadline Extended for FORM GST ITC-04 Declarations: Submit by December 31, 2018 for July 2017 to September 2018 Period.
Notifications
GST
Time limit for making the declaration in FORM GST ITC

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ITC 04 FILING
Query (Issue) Started By: – SUNDAR R Dated:- 26-10-2018 Last Reply Date:- 27-10-2018 Goods and Services Tax – GST
Got 2 Replies
GST
WE ARE SENDING THE RAW MATERIALS TO JOB WORKER FOR THE PROCESSING FINISHING GOODS, AFTER PROCESSING WE ARE RECEIVED THE FINISHED GOODS. IN ITC 04 TABLE 04 WE ARE UPDATED RAW MATERIALS SENT TO JOBWORKER. HOW CAN WE UPDATE RAW MATERIALS RECEIVED FROM JOBWORKER IN TABLE 5
Reply By SHIVKUMAR SHARMA:
The Reply:
If goods not received in the S

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GST Applies to Liquidated Damages as Service Supply, Regardless of Contract Terms; Taxation Based on Transaction Nature.
Case-Laws
GST
Levy of GST – Liquidated damages – Supply or not – point of taxation – tolerate an act – though in the agreement they may be giving this consideration, other names such as 'damages' or 'compensation' as thought proper by them, but these different nomenclatures in their Agreement would in no way change the actual nature of monetary “consideration” which w

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Restaurant Cleared of Profiteering Allegations After Adjusting Prices Due to GST and ITC Changes; Case Dismissed.
Case-Laws
GST
Profiteering – restaurant service – failure to pass the benefit of reduced rate of GST – Respondent had increased the average base price by 12.14% to neutralize the denial of ITC of 11.80% and such increase is commensurate with the increase in the cost of the product on account of denial of ITC. – Application dismissed.
TMI Updates – Highlights, quick notes

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