Author: admin_gst

In Re: M/s. Giriraj Renewables Private Ltd.
GST
2018 (9) TMI 1341 – APPELLATE AUTHORITY FOR ADVANCE RULING, KARNATAKA – 2018 (17) G. S. T. L. 156 (App. A. A. R. – GST)
APPELLATE AUTHORITY FOR ADVANCE RULING, KARNATAKA – AAAR
Dated:- 5-9-2018
KAR/AAAR/02/2018-19
GST
SHRI. A.K. JYOTISHI, AND SHRI. M.S. SRIKAR, MEMBER
Represented by: Sri. Mallaha Rao, Advocate
PROCEEDINGS
(Under Section 101 of the CGST Act, 2017 and the KGST Act, 2017)
At the outset, we would like to make it clear that the provisions of both the Central Goods and Services Tax Act. 2017 and the Karnataka Goods and Services Tax Act, 2017 (hereinafter referred to as CGST Act, 2017 and KGST Act, 2017) are the same except for certain provisions. Therefore, unless a mention is specifically made to such dissimilar provisions, a reference to the CGST Act would also mean a reference to the corresponding similar provisions under the KGST Act.
The present appeal has been filed under Section 100 of the CGST

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s, structures, inverter transformer etc.) as well as complete design, engineering and transportation, unloading, storage and site handling, installation and commissioning of all equipments and material, complete project management as well as civil works/ construction related services for setting up of a functional Solar Power Plant.
3. The contract entered into by the Appellant includes end to end activities i.e, supply of various goods and services intended for setting up, operation and maintenance Of a Solar Power Plant. There may be a single lump sum price for the entire contract for supply of both goods and services and payment terms may be defined depending on agreed milestones.
4. The appellant filed an application on 24.11.2017 before the Karnataka Authority for Advance Ruling under Section 97 of CGST/KGST read with Rule 104 of CGST/ KGST Rules, 2017 in form GST ARA-01, seeking a ruling on the following questions:
a. Whether supply of turnkey Engineering, Procurement & Constr

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ion lines as well as other ancillary parts/goods and services should be considered ag supply of SPGS; that if the contract qualifies as a 'composite supply' then the Same should be taxable at 5% as principal supply is the supply of Solar Power Generating Systems”.
6. Further, the appellant also submitted that the major component of Solar Power System is Solar Photovoltaic module (PV module) which comprises around 60-70% of the entire Solar Power Plant and the rest of the components are merely parts or sub-parts which are required for panel housing and setting up of the module such as controllers and switches; that the service portion of the contract is only 10-15% and balance is supply of goods -Which substantiates the fact that provision of services is incidental to supply of goods and hence, the supply of goods should form the principal supply and the entire contract should be taxed as supply of goods itself. They also submitted that they would be supplying the PV module which is th

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ed that the supplies made by them are to be used in SPGS.
8. Subsequently, the Karnataka Authority for Advance Ruling, vide Advance Ruling No KAR ADRG 01/2018 dated 21-03-2018 = 2018 (6) TMI 1127 – AUTHORITY ON ADVANCE RULINGS, KARNATAKA (hereinafter referred to as 'Impugned Order') made the following observations on a detailed examination of the draft contract:
As per clause D Of the contract, the equipment (PV module) is imported and directly transferred to the owner by way of High Sea Sale. The owner files the Bill of Entry with the Customs for clearance of the PV module. This indicates that the owner has procured the goods and made them available to the contractor. Further, as per clause 1.1.45 of the contract, “Free Issue Equipment” is defined as Photovoltaic Modules to be supplied by the owner to the contractor as free issue equipment at the plant site for the installation and commissioning of the solar power plant. Hence the major component (PV Module) said to be constituting

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e Authority held that since the main equipment i.e PV module is procured by the owner himself, it cannot be construed as a principal supply by the contractor (applicant)and hence the question is irrelevant.
On the question Whether the benefit of concessional rate of 5% on the Solar Power Generation System and parts thereof would also be available to the sub-contractors, the Authority held that the made by sub-contractor is an individual supply and thereby the appropriate rate of GST has to be applied depending on the specific nature of supply;
9. Being aggrieved by the above mentioned Ruling of the Authority (hereinafter referred to as 'Impugned Order'), an appeal was preferred before the Appellate Authority for Advance Ruling on 08-06-2018 on the following grounds:
i. The proposed transaction is for composite supply of solar power generating system as a whole and hence the rate of GST should be at GST. The appellant submits that the term 'Solar power generating system' has not been

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e main intent of the contract is provision of Solar Power Generating System as a whole which consists of various components such as PV module, structures, inverter transformers, cables, SCADA, transmission lines, etc. The contract also included services like civil installation and commissioning as well as construction which are incidental to provision of such goods and form an ancillary part of the contract, Reference is made to Schedule I of the draft contract which defines the scope of work to be executed by the Appellant. The said Schedule provides that the Appellant would be responsible for Supply of equipment and undertake all necessary activities ancillary to such supplies (such as erection, civil work, etc) to ensure complete supply of Solar power plant. Separate process are specified for different equipment which are supplied under the agreement for commercial convenience such as movement of goods, claiming of payment or availing trade credit, etc.
The appellant submitted that

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tract should be taxable at 5% GST.
iii. The Appellant submitted that in the impugned order, the AAR has held that merely because the PV module is supplied on HSS basis, the contract cannot qualify as composite supply of SPGS. They submitted that procurement of goods on High Sea Sales('HSS') basis does not change the nature of the contract. The intention of procuring the PV modules on HSS basis is for commercial convenience and in order to avail benefit of concessional customs duty as benefit of concessional rate of customs duty is only available to the owner. However, the risk and liabilities pertaining to all the equipment provided and to the development and design; procurement, supply, development, construction, testing and commissioning of the plant shall be borne by the Appellant till the completion of the plant.
Hence it cannot be said that the PV modules are being procured by the Project owner.
iv. The appellant submitted that in certain case, they engage various sub-contracto

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Was called for a personal hearing on 28.0812018 and was represented by Shri Mallaha Rao, Advocate. During the hearing the Advocate highlighted that the main intention of the parties to the contract was the Supply and setting up Of the Solar Power Generating Plant. He argued that the issue Whether the contract was to be considered as a 'composite supply' was misunderstood by the AAR merely on the grounds that the main equipment of the contract i.e. PV Module was imported and transferred on High Sea Sales basis to the owner who then supplied the PV module to the Appellant at the site. While admitting to the factual position of transfer of title of the PV module on High Sea Sales to the owner and later supplying it to the, Appellant under the Free Issue clause of the contract, he emphasised that this was done only for commercial reasons; that since the owner alone was eligible for customs duty exemptions, the import was done by the owner. However, the terms of the contract was such that t

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with the commitment for power supply under the agreement, the project owner enters into contract with the contractor by entering into EPC contract with the Appellant.
c. Thereupon, the Appellant places purchase orders on various vendors for supply of goods in order to execute the EPC contract entered into with the project owner.
d. Moreover, the Appellant also places purchase order with Foreign Vendors for supply on HSS basis to the project owner against HSS contract which is a sub set Off main EPC Contract entered into as referred to above.
e. In pursuance of the purchase orders from the Appellant, foreign vendors supply the goods to the Appellant
f. Thereafter, the Appellant sells those goods on HSS basis to the project owner against HSS contract which is a sub set of main EPC contract entered into as above.
12. Accordingly, the Appellant has made payments to the foreign vendors against the purchase orders. The project owner has made payment to the Appellant despite HSS transac

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d services in that regard in Order to complete the project. Further they submitted that even though certain goods are being supplied On High Sea Sale basis, the Same does not change the nature of the contract and obligation of the contractor to provide such goods to the owner; that the said goods transferred on HSS basis still form part of the contract and the risk and liabilities remain with the contractor and are passed on to the project owner only after completion of the project, that is supply of SPGS which includes supply of equipment and ancillary service like development, design, procurement, supply construction, testing and commissioning Of the plant etc. They relied on the Andhra Pradesh High Court decision in the case of M/s. Larsen & Toubro Ltd Vs. State of Andhra Pradesh reported in 2015-TIOL-3055-HC-AP-CT = 2015 (12) TMI 470 – ANDHRA PRADESH HIGH COURT, wherein the Hon'ble High Court observed that in cases Of turnkey contract; wherein both goods and services are provided,

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n application of the 'equivalence principle' also affirms that the intent of the Government was never to tax the entirety of the goods and services in relation to setting up an SPGS at a significantly higher rate of 18%. Furthers the clear intention of the Legislature is that the 'system' must be taxed at an aggregated level in whatever form it is, as a 'system', where all the value elements which comprise the 'system' must be taxed at 5%.
15. As regards the question whether the benefit would also be available to the subcontractor, they submitted that Notification no 01 /2017 Integrated Tax (Rate), which provides concessional rate on solar power generating system does not specify the persons who would be eligible for concessional rate of 5% i.e. developer, contractor or manufacturer/supplier/sub-contractor, Since the concessional rate Of 5% is provided to renewable energy products and parts thereof, the Same should be applicable to all suppliers providing such products as long as it c

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r hearing.
18. The Appellant has also sought for condonation of delay in filing this appeal on the grounds that the Appellate Authority was not constituted at the time when the date for filing this appeal was due and hence the delay was beyond their control. We note that the appeal in this case ought to have been filed by the 20th April 2018. However, the Appellate Authority for Advance Ruling was constituted under the KGST Act only on 25th April 2018. Hence we condone the delay in filing this appeal.
19. Coming to the matter at hand, we find that certain facts as observed by the AAR have not been disputed by the Appellant viz. The fact that the contract in question is an EPC contract for supply of Solar Power Generating System; that the contract involves both the supply of goods as well as the supply of services; that the major equipment as per-the contract is the Photovoltaic module which forms about 60-70% of the contract; that the said Photovoltaic module is purchased overseas an

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re transaction.
21. The definition of 'composite supply' as per Section of the CGST Act reads as under:
“Composite supply” means a supply made by a taxable person to a recipient consisting of two or more taxable supplies of goods or services or both, or any combination thereof, which are naturally bundled and supplied in conjunction with each other in the ordinary course of business, one of which is a principal supply.
Whereas, Section 8 of the CGST Act states that the tax liability on a composite supply shall be determined in the following manner, namely:-
“a composite supply comprising two or more supplies, one of which is principal supply, shall be treated as a supply of such principal supply.”
Illustration.- Where goods are packed and transported with insurance, the supply of goods, packing materials, transport and insurance is u composite supply and supply of goods is a principal supply;
In addition we also note that Section 2 (31) of the CGST Act 2017 has defined 'considera

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than money and securities but includes actionable claim, growing crops, grass and things attached to or forming part of the land which are agreed to be severed before supply or under a contract of supply;
(74) “mixed supply” means two or more individual supplies of goods or services, or any combination thereof, made in conjunction with each other by a taxable person for a single price where such supply does not constitute a composite supply;
Illustration: A supply of a package consisting of canned foods, sweets, chocolates, cakes, dry fruits, aerated drinks and fruit juices when supplied for a single price is a mixed supply. Each of these items can be supplied separately and is not dependent on any other. It shall not be a mixed supply if these items are supplied separately.
22. In the instant case there is no dispute that the contract in question involves a supply of both goods and services. However in order for the supply to be termed as a 'composite supply', what is required is t

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with its associated accessories, conductors, electrical cables, instruments, apparatus and other items /equipment required to be supplied by the Contractor for completing and integrating the SPP, as per the Technical Specification, excluding Free Issue Equipment(Emphasis supplied).
In terms of Para 1.1.45 “Free Issue Equipment” means Photovoltaic Modules to be supplied by the owner to the contractor, as a free issue equipment at the Plant Site for the installation and commissioning of the SPP. The obligations of the owner in terms of Para 4 of the contract include providing for insurance required for Free Issue Equipment, third party/public liability insurance and insurance required for its representative, engineers and labours until completion of its obligations under this contract- In terms of Para 9 of the contract, the owner agrees to provide Free Issue Material as agreed between the parties. The said material would be over and above the Plant being supplied by the Contractor und

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parts and components and services.
24. The first part of the supply is done by purchasing from a foreign supplier the PV module and transferring the title of the said PV module on High Sea Sales basis to the owner of the project. The Project owner clears the PV module through the Customs and makes available the same to the contractor (Appellant) without consideration to the project site. The Appellant have argued that the above modus is merely undertaken for commercial reasons since it is the project owner who is eligible for custom duty exemptions and therefore. the PV module although has been identified and arranged for purchase by the Appellant, the same has been actually procured and imported by the other contracting party. We find that the reason for this modus, though compelling is not the relevant to the issue at hand. What is relevant is that the Appellant having resorted to such a structuring, has the effect of making the supplies effected in this instance to have been effec

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ppellant for Setting up the Solar Power plant. This supply without consideration is not within the fold of the definition of 'supply' as stated in Section 7 of the CGST Act. Other than the exceptions spelt out in Schedule I, any supply without a consideration is not a 'supply' and hence does not attract GST. What crystallizes from the above is that, the Supply of the PV module which is the major component of the Contract is not coupled at all with the supply of the other parts of the Solar Power Plant and the services for setting up the Solar Power Plant. In fact, the supply of the PV module in the situation is separated both in time and intent and is distinct and never coupled with supply of other items/ services within the impugned contract (and Which, it is the responsibility of the owner to procure and make available to the contractor). The transaction of supply of PV module in itself is abstracted from the rest of the elements of the EPC contract. It is clearly c separate instance

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he contract is one for work and labour- The intention in the two different transactions is different- on the matter of PV module sold on high seas, it is sale; and thereafter Other transactions in goods and services are to follow.
27. Therefore, in view of the above, we find that the supply of PV module is a distinct transaction by itself and Cannot be said to be naturally bundled with the supply of the remaining parts required for setting up the Solar Power Plant. The contract itself makes it abundantly clear that the term “equipments” does not cover “free issue equipment”. Therefore, the Contract itself recognises the supply by the owner as a distinct transaction which is separate from the supply of the other equipments and components by the contractor. To this extent the AAR was right in the impugned order in holding that the concept of natural bundling does not apply to the instant envisaged supply of the PV module in terms of the draft contract in question.
28. Once the contract

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ble to be termed as a composite supply will be determined on the basis of the dominant nature of the supply. In other words, if the dominant nature of the remaining portion of the contract in question which is executed by the Appellant is principally a supply of services of design, erection, installation and commissioning, then the tax rate will the rate as applicable to the services if they form the principal supply of the remaining portion of the contract. It has never been contended before us that for the balance part of the supply under the contract in question, the goods element of What we agree to call a 'composite supply' are the predominant or principal component in the transaction. We modify the ruling of the Advance Authority in the-impugned order to the above extent. It is emphasised that the discussions and findings as detailed above are limited to the facts involved in the contract in question.
29. As regards the question whether the benefit of concessional rate of 5% GST

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components & parts of the Solar Power Plant and the supply of the services of Erection, Installation and Commissioning of the Solar Power Plant.
b) The supply of PV module is a distinct transaction from the supplies in contract in question as it is the owner whose responsibility it is to procure and supply the PV module. This PV module is to be supplied as free issue material over and above the plant being supplied by the contractor. The owner is responsible for transportation of the PV module from the point of origin till plant site and he bears the other risks and rewards of ownership. The PV module which is procured by the Project owner on High Sea Sale basis and imported by availing Customs duty exemptions and later supplied to the Appellant as a free issue for use in the setting up of the Solar Power Plant.
c) The supply of the remaining portion of the contract in question by the Appellant Which involves the supply of the balance components and parts of the Solar Power Plant and

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Prescription of Certain Procedure for Obtaining GSTIN by Certain Tax Payers
G.O. Ms. No. 186 Dated:- 5-9-2018 Telangana SGST
GST – States
Telangana SGST
Telangana SGST
GOVERNMENT OF TELANGANA
REVENUE DEPARTMENT
( CT-II)
Dated 05th September 2018
G.O. Ms. No. 186,- In exercise of the powers conferred by section 148 of the Telangana Goods and Services Tax Act, 2017 (Act. No. 23 of 2017), the State Government, on the recommendations of the Council, hereby specifies the persons who did not file the complete FORM GST REG- 26 of the Telangana Goods and Services Tax Rules, 2017 but received only a Provisional Identification Number (PID) (hereinafter referred to as “such taxpayers”) till the 31st December, 2017 may now apply for

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urisdiction of Officer who is sending the request
(ii) On receipt of an e-mail from the Goods and Services Tax Network (GSTN), such taxpayers should apply for registration by logging onto https://www.gst.gov.in/) in the “Services” tab and filling up the application in FORM GST REG-01 of the Telangana Goods and Services Tax Rules, 2017:-
(iii) After due approval of the application by the proper officer, such taxpayers will receive an email om GSTN mentioning the Application Reference Number (ARN), a new GSTIN and a newaccess token.
(iv) Upon receipt, such taxpayers are required to furnish the following details to GSTN by email, on or before the 30th September, 2018, to migration@gstn.org.in:-
(a) New GSTIN;
(b) Access Token for new GSTI

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KANIYAMPARAMBIL STEELS Versus THE ASSISTANT STATE TAX OFFICE, THE STATE TAX OFFICER, PERUMBAVOOR, THE COMMISSIONER OF STATE TAX, THIRUVANANTHAPURAM, THE UNION OF INDIA, NEW DELHI AND THE BRANCH MANAGER, KADUTHURUTHY
GST
2018 (10) TMI 1518 – KERALA HIGH COURT – TMI
KERALA HIGH COURT – HC
Dated:- 5-9-2018
RP. No. 703 of 2018 IN WP (C). 13980/2018
GST
MR DAMA SESHADRI NAIDU, J.
For The Petitioner : Adv. Aji V. Dev
ORDER
This Court on 19th July 2018 disposed of WP(C) No.13980 of 2018 with the following direction:
“In the light of the Division Bench's decision in W.A. No. 1802 of 2017, I dispose of the writ petition, directing the competent authority to complete the adjudication under Section 129 of the CGST Act,

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amus or any other writ or order or direction staying any step to invoke Ext.P4 bank guarantee pursuant to Exhibit P7 proceedings until filing an appeal under the CGST/SGST Acts.
4. Now the petitioner's counsel contends that pending this review petition, the petitioner has already filed a statutory appeal. It will suffice if this Court recalls its judgment under review and dispose of the writ petition with a direction to the respondent authorities not to encash the Bank guarantee until the statutory appeal is disposed of.
5. The learned Government Pleader, too, has submitted that the respondent authorities will keep the Bank guarantee intact until the petitioner's appeal is disposed of.
6. I, therefore, recall the judgment dated

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M/s. A.M.S. ENTERPRISES Versus COMMISSIONER OF CENTRAL SERVICE TAX, CHENNAI [PRESENTLY KNOWN AS “THE COMMISSIONER OF GST & CENTRAL EXCISE, CHENNAI SOUTH COMMISSIONERATE”]
Service Tax
2018 (11) TMI 1221 – CESTAT CHENNAI – TMI
CESTAT CHENNAI – AT
Dated:- 5-9-2018
ST/MISC/4111/2017 and ST/561/2011 – FINAL ORDER NO. 42344/2018
Service Tax
Smt. Sulekha Beevi C.S, Member (Judicial) And Shri Madhu Mohan Damodhar, Member (Technical)
For the Appellant Shri J. Shankar Raman, Adv.
For the Respondent Ms. T. Usha Devi, DC (AR)
ORDER
Per Bench:
The appellants are a partnership concern engaged in the business of Man-power Supply Service to various corporate customers. On gathering intelligence, that they are evading payment of service tax, the officers of DGCEI, took up investigation. On verification of records, it was noticed that the appellants collected service tax on Man-power Supply Service but failed to remit the same to Government account. Accordingly, show-cause

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alleging suppression of facts with intent to evade payment of tax for the period from 16.06.2005 to 31.03.2008. Further that the appellants were under confusion as to whether the amount of salary, ESI, PF etc., to be paid to the workers are subject to levy of service tax. On belief, that the demand raised including these amounts in the total taxable value is not subject to levy of tax, the appellants had contested the demand. They had also contested the demand on limitation before the authorities below. However, the Commissioner confirmed the demand and imposed equal penalty under section 78 of the Finance Act, 1994. Since there was a letter received by appellants to the DGCEI officials on 15.09.2006 submitting the necessary documents, the appellant's activity was well within the knowledge of the officials at least from 15.09.2006 onwards. Hence, during the period from 15.09.2006 to 31.03.2008 the extended period cannot be invoked. To support this contention, he placed reliance on

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axes from their client etc. The details along with such letter pertain to earlier period i.e., 2003-04 and 2004-05. For the subsequent period, the appellants have not filed periodical returns. The appellants have filed details of charges collected on 29.07.2008 and 06.11.2008. They requested for further time vide letter date 17.02.2009. The said letter having been given to DGCEI during the investigation proceedings, it cannot be said that the department was put to knowledge and, therefore, there is no suppression on the part of appellants. The extended period invoked as well as penalty imposed are correct and proper.
4. Heard both sides.
5. The learned counsel has contested only on the ground of limitation and the penalties imposed. To support the ground of limitation, he has relied upon the letter dated 15.09.2006 issued by the appellants to DGCEI. The said letter is seen at page 143 of appeal paper book. On perusal of the said letter, it is very much clear that the appellants have

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endered by them under Man-power Supply service, the invocation of extended period after 15.09.2006 cannot sustain. In identical set of facts, the Hon'ble Jurisdictional High Court in the case of M/s. V.N.K. Menon & Co., Vs CESTAT, Chennai reported in 2015 (323) E.L.T.524 (Mad.) has upheld the decision of Tribunal which set aside the demand after the date when department came to know about the details. The relevant portion is reproduced as under:
“8. On a careful consideration of the entire gamut of facts, the answer to the question of law raised by the assessee is found in Para-2 of the order of the Tribunal itself. It has been held by the Tribunal that there is a clear case of suppression for invocation of extended period of limitation for the period prior to August, 1996, as the activities of the appellant/assessee came to light subsequent to an investigation by the Department. However, insofar as the period post August, 1996, on the plea of suppression, the Tribunal was correct

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warranting interference with the well considered finding of the Tribunal.”
6. From the above discussions, we are of the considered opinion that the demand for the period 15.09.2006 to 31.03.2008 cannot sustain and requires to be set aside, which we hereby do. The appeal partly succeeds on the ground of limitation. However, we find that the ingredients of suppression are very much present prior to 15.09.2006. Only pursuant to the investigation conducted not only with appellants but also with many of their clients like M/s. SPIC, M/s. Raddison GRT, M/s. Aircel, etc., did the fact of collection of service tax and the evasion come to light. Discernible, these facts were suppressed from the Department till the investigation. This being so, not only is the extended period invocable up to 15.09.2006 and demand in Annexure-A of the notice sustainable with interest up to that date but the penalty equal to the amount of such revised tax liability is also imposable. No interference is also calle

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In Re : G.N. Chemicals
GST
2018 (12) TMI 142 – AUTHORITY FOR ADVANCE RULING – CHHATTISGARH – 2018 (18) G. S. T. L. 825 (A. A. R. – GST)
AUTHORITY FOR ADVANCE RULING – CHHATTISGARH – AAR
Dated:- 5-9-2018
STC/AAR/04/2018
GST
Shri S.K. Buxy and Rajesh Kumar Singh, Members
ORDER
Proceedings : The applicant M/s G.N. Chemicals, 27/13, Nehru Nagar-West, Bhilai, (C.G.) GSTIN 22AAFFG5162J1ZJ has filed the application U/s 97 of the Chhattisgarh Goods & Services Tax Act, 2017 requesting advance ruling as regards levy of GST Rate applicable in case of “Neem Seed”, classified under HSN Code 1211, placed both under 0% GST Rate and 5% CST Rate, on the condition that “All goods of seed quality” are classifiable under 0% GST Rate, whereas “All goods other than Seed quality” shall be classified under 5% GST Rate. The applicant is of the opinion that Neem Seed is classifiable under 0% GST Rate. 
2. Facts of the case :-
I. M/s G.N. Chemicals, 27/13, Nehru Nagar-West, Bhilai,

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ommodities for Customs and Central Excise, and now for GST classification as well.
Neem Seed is categorized under HSN Code 12119014 under Indian Trade Classification (HS) – 2017.
Description of the Chapter 12 of ITC – HS Code reads as below : –
“OIL SEEDS AND OLEAGINOUS FRUITS; MISCELLANEOUS GRAINS, SEEDS AND FRLIIT; INDUSTRIAL OR MEDICINAL PLANTS; STRAW AND FODDER”
(iii)  that, on carefully reading the Chapter description the apt placement of semi-colons and commas amply explains the types of goods & application of such goods covered by this classification under chapter 12 and the same is as below :-
Type
Meaning
Oil Seed
Seed that yields Oil
Oleaginous Fruit
Oily, or Rich in Oil, or Covered with Oil, or Producing Oil
An oleaginous fruit is the part of a plant that is used to produce oil. It can be a fruit (for example olives), seed (for example sesame) or nut (for example walnuts)
Grains
Grain is a cereal crop that has been harvested and is used for food.
Seed
the

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sowing, they would have placed Neem seed in HSN code 1209 (which is placed in Nil Rate classification), however, they have placed neem seed in HSN Code 1211 – the Heading title of which explicitly confirms the application of seeds to be not just for sowing purpose.
(vi)  thus, Neem Seed is to be classified under 12119014 irrespective of whether Neem Seed is used for sowing or for Industrial of medicinal purpose.
(vii)  Now HSN Code 1211 is placed under Nil GST Rate category as well as 5% GST Rate category with the distinction as below :-
Chapter 12
All goods of Seed quality
All goods other than seed quality
Neem Seed
1211
1211
CST Rate
0%
5%
“The titles of section and chapter are provided for ease of reference only; for legal purposes, classification shall be determined according to the terms of the heading and any relative section or chapter notes and, provided such heading or notes do not otherwise require, according to the provisions hereinafter contained.&#

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he applicable general interpretational rules have been humbly submitted. Therefore it was their contention that Neem Seed (in all forms) to be classified under 0% GST Tax slab.
5.  Thus we find that M/s. G.N. Chemicals, 27/13 Nehru Nagar West, Bhilai, (C.G,) 490020, GSTIN 22AAFFG5162J1ZJ, the applicant is seeking clarity as regards the applicable rates for payment of GST on the aforesaid commodity that is Neem Seed, viz. whether the applicable rates should be @ 0% or 5%.
6.  The legal position, Analysis and Discussion :-
6.1  The provisions for implementing the CGST Act and CGGST Act, 2017 are similar. Now we sequentially discuss the provisions that are applicable in the present case.
6.2  The following facts have been mentioned in the report received from the jurisdictional Office of the applicant i.e. O/o Assistant Commissioner, Circle-2 Durg, with regard to the advance ruling application filed by the applicant :-
This report is with reference to the applicat

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Ayurveda practitioners to be anthelmintic, antifungal, antidiabetic, antibacterial, anti  viral, contraceptive and sedative. Neem is a key ingredient in Non-Pesticidal Management (NPM), providing a natural alternative to synthetic pesticides.
It goes beyond doubt that Neem is widely used in perfumery, in pharmacy or for insecticidal, fungicidal or similar purpose. Therefore it falls in HSN Code 1211 which contains “Plants and parts of plants (including seed and fruits), of a kind used primarily in perfumery in pharmacy or for insecticidal, fungicidal or similar purpose, frozen or dried, whether or not cut, crushed or powdered” and the rate of tax on items falling under this heading is 5% that is 2.5% CGST 2.5% SGST.
However, there are two entries in HSN code 1211, one is of 0% GST and another is of 5% GST. Both of these entries are extracted here for the sake of making matter more clear. These are as follows :
HSN
DESCRIPTION
RATE OF TAX
1211
Plants and parts of plants (

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ative term and means the degree of excellence when compared to an acceptable standard. The seeds having required standards of purity, germination and other attributes are referred to as quality seeds- Thus this chapter itself makes a very wide distinction at the outset between seeds per se and seed quality at the outset.
The applicant's other queries are about rate of tax on organic manure made up of Neem cannot be answered here due to lack of disclosure of procedure involved in making of manure. Unless it is determined that the manure made by the applicant is organic, it's needless to give opinion on it.
 6.3 To sum up in the opinion of jurisdictional officer following would be the answer of the applicant's queries :-
(i)  Trading of Neem Seed in “fresh or chilled” form would attract 0%  of GST, whereas when traded as “frozen or dried” form would attract 5% GST.
(ii)  Trading of Neem Seed powder would also attract 5% of GST.
(iii)  Neem oil ex

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wing) includes all types of Neem Seed, whether for sowing or other uses and should be approved under tax free category.
6.6 The applicant has not come up with any evidence or logical explanation to substantiate their above contention. It has been unambiguously clarified in each entry mentioned in the schedules, issued under State and Central GST Acts as regard the applicable tax rate on any goods/ service along with the conditions and circumstances under which such goods/service shall be classified  as tax free or taxable under specific tax slab. The following two pre-conditions need fulfillment for categorizing the neem seed so supplied by the applicant as tax free, as stipulated under HSN code 1211 –
HSN
DESCRIPTION
RATE OF TAX
1211
Plants and parts of plants (including seed and fruits), of a kind used primarily in perfumery, in pharmacy or for insecticidal, fungicidal or similar purpose, frozen or dried, whether or not cut, crushed or powdered.
CGST 2.5%
SGST 2.5%

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on 5 to Section 9 clearly stipulate the provisions for authentication of seed quality on the basis of which any seed would be defined as 'tax free seed for sowing.'
6.8 Seeds are the foundation of agriculture. Seed quality plays an important role in the production of agronomic and horticultural crops. Characteristics such as trueness to variety, germination percentage, purity, vigour, and appearance are important to farmers planting crops. Seed quality is the degree of excellence in regard to the characteristics referred to above that determines the seed quality. If the seed lot possesses high genetic purity and high germination percentage and is inter alia free from diseases, it is categorized as possessing high quality. Generally the standards fixed for certified seeds are considered of having quality standards. It implies that if a seed lot meets the certification standards, it is a good quality seed and if does not meet the certification standards, it is obviously not of s

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etch of imagination be categorized as those attracting tax @ 0%.
6.10 The applicant during the course of hearing stated that they would make neem oil from the kernel of neem which they would acquire from the collection of dry neem fruits or purchase of the same and they would also sell organic manure made from the De-Oiled Cake and husk of Neem. This clearly goes on to establish that the said goods to be supplied by the applicant does not fulfill the conditions mentioned under HSN code 1209 and 1211 neither in the 'specific form' nor 'specific use', as stipulated under GST Act to be categorized as attracting tax @ 0%.
7. In view of the deliberations and discussions as above, we pass the following order :-
ORDER
8. The ruling so sought by the Applicant is accordingly answered as under :-
In terms of Notification No. 1/2017-State Tax (Rate) No. F-10-43/2017/CT/V(69), Naya Raipur, Dated 28-6-2017, Serial No. 73, Chapter 1211 :
(i)  Supply of neem seeds in froze

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In Re: M/s. Asahi Kasei India Private Limited
GST
2019 (1) TMI 1091 – AUTHORITY FOR ADVANCE RULINGS MAHARASHTRA – 2019 (21) G. S. T. L. 243 (A. A. R. – GST)
AUTHORITY FOR ADVANCE RULINGS MAHARASHTRA – AAR
Dated:- 5-9-2018
GST-ARA-35/2018-19/B-108
GST
SHRI B.V. BORHADE, AND SHRI PANKAJ KUMAR, (MEMBER)
PROCEEDINGS
(Under section 98 of the Central Goods and Services Tax Act, 2017 and the Maharashtra Goods and Services Tax Act, 2017)
The present application has been filed under section 97 of the Central Goods and Services Tax Act, 2017 and the Maharashtra Goods and Services Tax Act, 2017 [hereinafter referred to as “the CGST Act and MGST Act”] by Asahi Kasei India Private Limited, the applicant, seeking an advance ruling in respect of the following ISSUE. .
1. Whether the service supplied by the Applicant under the Service Agreement dated 1 March 2013 constitute a supply of “Support services” falling under HSN code 9985 “Intermediary service” classifiable under HS

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ssions, as reproduced verbatim, could be seen thus-
STATEMENT OF THE RELEVANT FACTS HAVING A BEARING ON THE QUESTIONS:
Asahi Kasei India Private Limited (hereinafter referred to as the “Applicant”) is a company incorporated in India in August 2012. The Applicant is a subsidiary of Asahi Kasei Corporation, Japan (“Asahi Japan”).
Asahi Japan is the flagship company of the Asahi Kasei group. Asahi Kasei group S fibers and textiles, petrochemicals, pharmaceuticals, polymers, electronic devices, home products, construction materials, health care etc.
The Applicant provides sales promotion and marketing support to Asahi Kasei group. For this, the Applicant has entered in to a Services Agreement dated 01 March 2013 with Asahi Japan and Marketing Services Agreement with various group companies of Asahi Kasei group. The scope of work under the Agreement is broadly stated below:
a. Collecting and analyzing information i.e. market analysis and supporting Asahi Kasei group in getting new busi

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cated Products Division (Asaclean) of Asahi Kasei Chemicals Corporation [dated 01 October 2013] as amended vide agreement dated 01 July 2016: (modified 5th January 2017 and taken over by Asahi Kasei Corporation, Japan)
d. Agreement with Asahi Kasei Plastics North America Inc. [dated 02 January 2014];
e. Agreement with Asahi Kasei Home Products Corporation [dated 01 April 2015];
f. Agreement with Bemberg Division of Asahi Kasei Fibers Corporation (dated 01 May 2015]; (modified 5th January 2017 and taken over by Asahi Kasei Corporation, Japan)
STATEMENT CONTAINING APPLICANTS INTERPRETATION OF LAW IN RESPECT OF THE QUESTIONS RAISED
Question on which advance ruling is required
Whether the service supplied by the Applicant under the Service Agreement dated 1 March 2013 constitute a supply of “Support services” falling under HSN code 9985 “Intermediary service” classifiable under HSN code 9961 /9962?
Statement of facts having a bearing on the question
The scope of the services provid

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ndia or any other mutually agreed territory) as Party A may from time to time request. In the event Party A should require more detailed information than that so provided by Party B, Party B shall exert its best efforts to obtain such further or more detailed information.
6. At such time and from time to time, as and when representatives of Party A, or its related business circles or customers visit the Territory and Party A so requests, Party B shall provide necessary assistance in business activities (including interpreting) to such representatives.
7. From time to time, as and clean requested by Party A, Party B shall make market surveys of the Products in the Territory and report the results thereof to Party A.
8. Party B shall perform services, as directed by Party A, resulting from the assignments pursuant to paragraph 4 through 7 of this Agreement, including, but not limited to, those services with regard to finance, accounting, and patent and legal matters.”
As per Clause 9

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s entered either by local agent or by Asahi Japan or other overseas group company directly.
In fulfilment of its obligation, the Applicant has undertaken following activities:
(i) Providing reports on the condition of the economy and undertaking market survey
(ii) Visit to existing and perspective customers to understand their requirement, their business plan and their feedback and reporting to Asahi Japan
(iii) Providing information on the products of Asahi Japan to the existing and perspective customers
(iv) Generating marketing leads and relaying to Asahi Japan
(v) Helping customer on the product trial
(vi) Facilitating meeting between customers and agent Asahi Japan
Statement containing the applicant's interpretation of law
1. There are two possible classifications for the services supplied by the Applicant. The relevant HSN codes along with its description are tabulated hereunder:
SR.NO.
HSN CODE
TARIFF ENTRY
i.
9961 / 9962
Intermediary service – Services in w

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son. In order to examine this limb, it would be apt to refer to the dictionary definitions of the terms “broker” and “agent”. The relevant extract of the various dictionary definitions are as follows:
a. Broker
i. Halsbury[s Laws of England, 4th Edition, Volume 1, Para 712, Page 424: – A mercantile agent who in the ordinary course of his business is employed to make contracts for the purchase or sale of property or goods of which he is not entrusted with the possession or documents of title [Alapati Ramamurthi, Gelli Krishnamurthy & Co. Vs. J. Ramanujan and Ors. (ALR 1961 AP 408) = 1960 (7) TMI 66 – ANDHRA PRADESH HIGH COURT].
ii. K J Aiyar's Judicial Dictionary: – Word meaning an agent but used generally in a more special sense for one Who buys or sells on behalf of another. He must act according to the instructions given to him and as a general rule, his task is finished when he has made a contract between a buyer and the seller… Brokers are remunerated by commission known as br

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h a manner as to put those who employ him in a condition to treat together personally;
(2) and more commonly an agent employed by one party only to make a binding contract with another.
b. Agent
i. Shorter Oxford English Dictionary (Deluxe Edition): A person who acts for another un business, politics, etc.;
ii. Section 182 of the Indian Contract Act 1872: – An “Agent” is a person employed to do any act for another or to represent another in dealings with third persons;
iii. Concise Law Dictionary (2008 Edition): – An agent acts on behalf of his principal and often uses is name and his acts in that capacity are attributable to the principal;
5. Having understood the meaning of the terms '”broker” and an “agent”, it would be imperative to examine the scope of the term ll any other person, by whatever name called”. In this regard, it is humbly submitted that the scope of this phrase is restricted by the preceding words “broker or agent” by applying the principle of “Ejusdem Generis

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e Delhi High Court decision in the case of Areva T & D India Ltd. Vs. DCIT [2012-TIOL-234-HC-DEL-IT) = 2012 (4) TMI 79 – DELHI HIGH COURT wherein the Hon'ble High Court applied the principle of ejusdem generis to interpret the expression “business or commercial rights of similar nature” referred to in section 32(1)(ii) of the Act and held that the Legislature did not intend to provide for depreciation only in respect of specified intangible assets but also to other categories of intangible assets, which were neither feasible nor possible to exhaustively enumerate.
The principle of ejusdem generis was also upheld by the Apex Court in the case of Assistant Collector of C.Ex. Vs. Ramdev Tobacco Company (1991 (51) ELT 631 (SC)] =  1991 (1) TMI 136 – SUPREME COURT OF INDIA and CCE Vs. Shital International [MANU/SC/0884/2010) = 2010 (10) TMI 19 – SUPREME COURT OF INDIA. Similar view has been affirmed in the following cases:
i. CIT vs. Rani Tara Devi [2013 (355) ITR 457 = 2013 (3) TMI

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y of selling of goods.
11, The Applicant submits that the dictionary meaning of facilitation is to make easy or easier, make something possible or aiding or helping. Thus, the dictionary meaning of facilitation is very wide and covers processing, storage, transport, advertising, sales promotion etc, all activities as each and every activity aids or smoothens supply of goods. Goods Transport service (9965), Transport support service (9967), advertising and market research service (9983) are separate service classification. If such a wide meaning is adopted, it will render many of these PP service classifications redundant. Thus, the Applicant submits that facilitate supply of goods refers to an activity directly related to the sale.
12. In the instant case, the Applicant and the Service recipient are acting as independent contractors. Moreover, the Applicant and the service recipient have no authority to create nor do they assume any obligation on behalf of each other. The point of di

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“Independent contractor' which has been defined in the Concise Law Dictionary as follows:
“One who, exercising an independent employment, contracts to do a piece of work according to his own methods, and without being subject to his employer's control, except as to the result of the work.
An independent contractor is one Who undertakes to produce a given result but so that in the execution of the work he is not under the order or control of the person for whom he does it, and may use his own discretion in things not specified beforehand.”
15. As highlighted above, the Services Agreement specifically provides a clause that the Parties do not intend to create any principal-agent relationship, Further, the consideration charged by the Applicant is not qua a particular transaction between the service recipients and their customers. Therefore, the services supplied by the Applicant to the service recipients fails to comply with the second limb of the definition of the term “intermediary”

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or services or both, or any combination thereof, which are naturally bundled and supplied in conjunction with each other in the ordinary course of business, one of which is a principal supply”
b. It is pertinent to note that the definition of intermediary under Section 2(13) of the IGST Act is pari materia to the definition provided under the Finance Act 1994. The Education Guide, 2012 issued by the CBEC inter alia provides the various factors that needs to be considered in determining whether a person is an intermediary. The relevant extract is reproduced hereunder:
“Nature and value: An intermediary cannot alter the nature or value of the service, the supply of which he facilitates on behalf of his principal, although the principal may authorize the intermediary to negotiate a different price. Also, the principal must know the exact value at which the service is supplied (or obtained) on his behalf, and any discounts that the intermediary obtains must be passed back to the princi

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ence authorizing him to act on behalf of the provider of the main service!”
19. Para 5.9.6 of the Education Guide, 2012 issued by the CBEC clarifies the scope of the term intermediary. The relevant extract is reproduced hereunder;
“Similarly, persons such as call centres, who provide services to their clients by dealing with the customers of the client on the client's behalf, but actually provided these services on their own account, will not be categorized as intermediaries.”
In the instant case, although the Applicant deals with the service recipients customers, but the same is for the purpose of providing services to the service recipient on its own account. Consequently, the services provided by the Applicant cannot be classified as Intermediary services”.
20. In an identical case as the present situation, GODADDY India Web Services Pvt. Ltd. had filed an Advance Ruling under the Service tax regime [2016 (46) STR 806 (A.A.R.)] = 2016 (3) TMI 355 – AUTHORITY FOR ADVANCE RULINGS.

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ervice, Further, applicant would provide said service as a package and the payment for the entire package would be a consolidated lump sum payment. Applicant submits that in view of these indicators, service provided by them to GoDaddy US is a bundle of services, which is bundled in the normal course of business. This point has not been controverted by the Revenue. We agree with the submissions of the applicant that proposed services are a bundle of services, bundled in normal course of business and not intermediary service.”
21. Applying the above to the present case, while the scope of services provided to the Asahi Kasei group is very wide, the same would fall within the ambit of the term “composite supply” with the marketing services being the principal supply
22. In view of the above, it is amply clear that the services provided by the Applicant cannot be considered as an “Intermediary services”. However, in order to determine the correct classification of the services provided

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rt services and other transaction processing.
Explanation – For the purposes of this clause, the expression infrastructural support services” includes providing office along with office utilities, lounge, reception with competent personnel to handle messages, secretaria services, internet and telecom facilities, pantry and security;”
[Pre-negative List regime]
“Section 65B(49) “support services means infrastructural, operational, administrative, logistic, marketing or any other support of any kind comprising functions that entities carry out in ordinary course of operations themselves but may obtain as services by outsourcing from others for any reason whatsoever and shall include advertisement and promotion, construction or works contract, renting of immovable property, security, testing and analysis;”
[Negative List regime]
24. From the above, it can be construed that marketing services, advertisement and promotion services, customer relationship management, evaluation of prospe

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features so as to assist in determining the nature and scope of the Indian market potential;
b) Assisting the service recipient in the adaptation and implementation of its advertising policy;
c) Assisting the service recipient in conducting sales prospection through participation in industry events such as scientific gatherings, exhibitions, trade shows and the like;
d) Liaising with Customers and potential Customers and to collect their product development plans and strategy and “road-maps”, as well as their product specifications; and reporting the same to the service recipient the information obtained through such interactions;
e) Providing any feedback to the service recipient that would help improve the service recipient's marketing; Facilitating the service recipient in arrangement of discussions and provision of interpretation services and cross culture advice; or the sake of clarity, neither AKI (i.e. the Applicant) nor any of its representatives shall have any authority t

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and maintaining contact with regulatory agencies) and reporting the same to the service recipient; and
j) Any other assistance in the context of the above, regarding service recipient's marketing activities that may be reasonably requested by service recipient after the effective date in writing to AKI.”
It may however be noted that the scope of service for the marketing services agreement with APNA do not include the points (c), (g) and (i) as mentioned above
Statement containing the applicant's interpretation of law
As in case of Question No. 2 above
QUESTION NO. 3
Question on which advance ruling is required
Whether the services provided by the Applicant is an export of services as defined under Section 2(6) of the Integrated Goods and Services Tax Act 2017?
Statement of facts having a bearing on the question
The Applicant receives payment in freely convertible foreign exchange i.e. Japanese Yen / United States Dollar
Statement containing the applicant's interpretation of

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ace where the person has obtained registration, the location of the supplier shall be such place of business. In the instant case, the Applicant is providing service from Maharashtra for which it has obtained GST registration. Consequently, the location of the supplier of service shall be Maharashtra i.e. in India.
b. Condition II – Recipient of service is located outside India
The term “location of the recipient of services” has been defined under section 2(14) of the IGST Act. As per the said definition, if a supply has been received from a registered place of business or registered fixed establishment, the location of the recipient shall be the respective place of business or fixed establishment. However, in other cases, the usual place of residence of the service recipient shall be the location of the service recipient. In the instant case, the Asahi Kasei group is not registered in India and therefore, their registered place of business will be their registered address (i.e. out

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le foreign exchange
As mentioned in the foregoing paragraphs, the consideration charged by the Applicant is in convertible foreign exchange i.e. Japanese Yen / United States Dollar.
e. Condition V – Supplier of service and recipient of service are not merely establishment of distinct person
Explanation 1 to Section 8 inter alia provides that where a person has an establishment in India and any other establishment outside India, then such establishments shall be treated as establishments of different legal persons. The term person has been defined to include a Company. In the instant case, the service recipient i.e. Asahi Kasei group is not an establishment formed by the Applicant and consequently, it cannot be treated as an establishment of a distinct person.
3. In view of the above, it can be construed that the Applicant fulfils all the conditions for treating the supply of services as an export of services in terms of Section (6) of the IGST Act. Therefore, the answer to Question

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3) Whether the service provided by the Applicant is an export of services as defined under Section 216) of the Integrated Goods and Service Tax Act 2017?
Statement of facts having bearing on the question (1):
Asahi Kasei India Pvt. Ltd., (hereinafter referred to as the “Applicant') has entered into Service Agreement dated 1st March, 2013 with Asahi Kasei Corporation, a Japanese Corporation. However, the address mentioned in the agreement is (The Capital, Office No.801-C, 8th floor, Plot No C70, G-Block, Bandra Kurla Complex, Bandra (East), Mumbai-400051, which is different from Advance Ruling Application of the applicant.
The scope of the services provided by the Applicant under Service Agreement with Asahi Kasei Corporation, Japan (dated 01 March 2013) as amended on 05 January 2017 are highlighted at Clauses 4 to 8 of the Agreement. The relevant extract of the agreement is reproduced hereunder:
“4. Party B (i.e. the Applicant) agrees to conduct from time to time, as and when requ

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m time to time, as and when representatives of Party A, or its related business circles or customers visit the Territory and Party A so requests, Party B shall provide necessary assistance in liasoning and coordinating activities (including interpreting) to such representatives.
7. From time to time, as and when requested by Party A, Party B shall make market surveys of the Products in the Territory and report the results thereof to Party A.
8. Party B shall perform services, as directed by Party A, resulting from the assignments pursuant to paragraph 4 through 7 of this Agreement, including, but not limited to, those services with regard to finance, accounting, and patent and legal matters.”
As per Clause 9 of the Agreement, Service consideration received by the Applicant is the direct cost+ apportioned overhead expenses+10% margin +applicable taxes.
From perusal of the above extract of the agreement it is seen that the Applicant is engaged in the activities for the party A, viz.

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gal matters.
PRAYER
In view of the above, it can be said that
i) The research on the matters related to functions of holding company such as corporate accounting, corporate finance, corporate personnel and labor relations, corporate research and development, market surveys appears to come under the category of 'Market Research services' under Heading No.998371;
ii) Research on the matter of corporate intellectual property appears to come under 'Legal documentation and certification services concerning patents, copyrights and other intellectual property rights services' which fall under Heading No.998213
iii) The economic, industrial and technical information on the products falling under the category of the Products and their markets, trends and outlook together with similar information concerning such other industries, appears to fall under 'Original compilations of facts or information' which fall under Heading No.998394' / Business Support Service(9985).
iv) Providing necessar

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ned in the agreement is 'The Capital, Office No. 801-C, 8th floor, Plot No.C70, G-Block, Bandra Kurla Complex, Bandra (East), Mumbai-400051, which is different from Advance Ruling Application of the applicant.
The scope of the services provided by the Applicant under Marketing Services Agreement with Bioprocess Division of Asahi Kasei Medical Co. Ltd., are highlighted at Article 2 of the Agreement. The relevant extract of the agreement is reproduced hereunder: Bioprocess Division of Asahi Kasei Medical Co. Ltd. referred to as “AM” in agreement dated 01 December 2012.
The services shall comprise the following activities, all of which are described with respect to the Products in the Territory, and all only to be conducted at and under the explicit direction of AM.
a) Conducting market surveys and providing the AM with information on Indian market trends and features so as to assist in determining the nature and scope of the Indian market potential;
b) Assisting AM in the adaptation

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mers visiting the territory with such assistance as may be reasonably requested by AM, including but not limited to providing information, guide, escort and interpreting services during Customers visits; for the sake of clarity, the premises of AKI (applicant) will not be the premises of AM and the same shall not be made available to employees or other personnel of AM who may visit India;
h) Providing information on products and its functioning or similar such services to AM's customers and notifying AM of any Customer complaints;
i) Monitoring regulatory developments (including, where possible, establishing and maintaining contact with regulatory agencies) and reporting on these to AM; and
j) Any other assistance in the context of the above, regarding AM's marketing activities that may be reasonably requested by AM after the Effective Date in writing to AKI(Applicant).”
From perusal of the extract of the above agreement dated 01.12.2012 it is seen that the Applicant is engaged

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negotiations on behalf of AM, connecting Customers with AM representatives for the purpose of obtaining orders and establishing and maintaining close commercial relationships between AM and customers, providing staff of AM or its customers visiting the territory with such assistance as may be reasonably requested by AM, including but not limited to providing information, guide, escort and interpreting services during Customers visits; for the sake of clarity, the premises of AKI(applicant) will not be the premises of AM and the same shall not be made available to employees or other personnel of AM who may visit India, providing information on products and its functioning or similar such services to AM's customers and notifying AM of any Customer complaints, monitoring regulatory developments (including, where possible, establishing and maintaining contact with regulatory agencies) and reporting on these to AM; and any other assistance in the context of the above, regarding AM's marketi

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and “road-maps”, as well as their product specifications, and reporting to AM abroad, information obtained through such interactions appears to be connected to the services at Para 10 above as principal supplies, therefore in terms of Section 8 of the Central Goods and Service Tax Act, 2017 read with Section 20 of the Integra ted Goods and Service Tax Act, 2017. Therefore the said service 'Original compilations of facts or information' which individually fall under Heading No.998394' / Business Support Service(9985) will be supplied as Composite Supply and in terms of Section of the IGST Act, 2017.
v) Providing any feedback to AM that would help improve AM's marketing; Facilitating AM in arrangement of discussions and provision of interpretation services and cross culture advice; for the sake of clarity, neither AKI (i.e. the Applicant) nor any of its representatives shall have any authority to conduct negotiations on behalf of AM, appears to fall under 'Other professional, technical

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his the service category is not clearly mentioned, hence, Advance Ruling should not be given for this services;
ix) Monitoring regulatory developments (including, where possible, establishing and maintaining contact with regulatory agencies) and reporting on these to AM, appears to fall under 'Other Legal services nowhere else classified' under Heading No.998216; and
x) Any other assistance in the context of the above, regarding AM's marketing activities that may be reasonably requested by AM after the Effective Date in writing to AKI(Applicant). In this, the service category is not clearly mentioned, hence, Advance Ruling should not be given for this services;
Statement of facts having bearing on the question (3):
The Term “export of services” as defined under Section 2(6) of the IGST Act and the term “intermediary” as defined under Section 2(13) of the IGST Act. The relevant extract is set out hereunder:
“(6) export of services” means the supply of any service when
(i) The s

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GST and providing the service from Maharashtra, India. Hence fulfilling the first condition with reference to term “location of the supplier of service” is located in India, as defined under Section 2(15) of the IGST Act.
b. Condition-II- Recipient of service is located outside India.
In the instant case the service recipient M/s. Asahi Kasei Corporation (Service Agreement) and Asahi Kasei Medical Co. Ltd (Marketing Service Agreement) is not registered in India and therefore their registered place of business will be their registered address (i.e outside India). Hence  fulfilling the first condition with reference to term “The recipient of service is located outside India” as defined under Section 2(14) of the IGST Act.
C. Condition-III place of supply of Service is outside India.
The services provided by the Applicant is in nature of different services in the above two agreement viz, in Service agreement dated 1st March, 2013, the following services appears to be applicable

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' under Heading No.998216;
The place of supply in the instant case is determined as per general rule i.e Section 13(2) of IGST Act where the location of the recipient of services shall be the place of supply of services and Section 13(3) to 13(13) where place of supply shall be the location where services are actually performed. In the present case, the place of supply of Service regarding the two agreements, the Details are as follows:
In Service agreement dated 1st March, 2013,
1. The research on the matters related to functions of holding company such as corporate accounting, corporate finance, corporate personnel and labor relations, corporate research and development, market surveys appears to come under the category of 'Market Research services' under Heading No.998371, will be covered under Section 13(2) of the IGST Act, 2017 and place of supply of service or shall be the location of the recipient of services;
2. Research on the matter of corporate intellectual property appe

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es which fall under Heading No.99859, will be covered under Section 13(3)(b) interalia Section 13(4) of the IGST Act, 2017 and the place of supply of service shall be the location where the services are actually performed.
5. Regarding Para 8 of the agreement, it is felt that Advance Ruling cannot be given because without proper and full facts. In this Para, conditions like 'but not limited to' is mentioned, which does not give a clear picture of what services it pertains to. Hence, Advance Ruling or for Para 8 cannot be given.
6. Regarding Para 9 of the agreement, it is subject to separate treatment to any intermediary activities where place of provision of service is governed by Section 13(8) of the CGST Act, 2017.
In Marketing Service agreement dated 01.12.2012,
7. Conducting market surveys and providing the AM with the information on Indian market trends and features so as to assist in determining the nature and scope of the Indian market potential appears to fall under 'Market

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atives for the purpose of obtaining orders and establishing and maintaining close commercial relationships between AM and customers, will be covered under Section 13(8)(b) of the IGST Act,2017 as 'intermediary services' and the place of supply of service shall be the location where the services are actually performed, appears to fall under 'business support services' under Heading No.99859.;
11. Liaising with Customers and potential customers and to collect their product development plans and strategy and “road-maps”, as well as their product specifications, and reporting to AM abroad, information obtained through such interactions appears to be connected to the services at Para 10 above as principal supplies, therefore in terms of Section 8 of the Central Goods and Service Tax Act, 2017 read with Section 20 of the Integrated Goods and Service Tax Act, 2017, the said service 'Original compilations of facts or information' which will individually fall under Heading No.998394', / Busine

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ons on behalf of AM, appears to fall under 'Other professional, technical and business services nowhere else classified' under Heading No.998399, will be covered under Section 13(2) of the IGST Act, 2017 and place of supply of service or shall be the location of the recipient of services;
14. Providing staff of AM or its customers visiting the territory with such assistance as may be reasonably requested by AM, including but not limited to providing information, guide, escort and interpreting services during Customers visits; for the sake of clarity, the premises of AKI (applicant) will not be the premises of AM and the premises of AKI(applicant) in India shall not be made available to employees or other personnel of AM who may visit India, will be covered under Section 13(3)(b) interalia Section 13(4) of the IGST Act, 2017 and the place of supply of service shall be the location where the services are actually performed.
15. Providing information on products and its functioning or s

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ment in freely convertible foreign exchange i.e. Japanese Yen / United States Dollar.
e. Condition V – Supplier of service and recipient of service are not merely establishment of distinct person.
Explanation 1 to Section 8 of IGST Act provides that -For the purposes of this Act, where a person has, –
(i) an establishment in India and any other establishment outside India;
(ii) an establishment in a State or Union territory and any other establishment outside that State or Union territory; or
(iii) an establishment in a state or Union territory and any other establishment being a business vertical registered within that State or Union territory, then such establishments shall be treated as establishments of distinct persons.
PRAYER
In view of the above, it can be construed that in some services (as mentioned above) the Applicant fulfils all the conditions for treating the supply of services as an export of services in terms of Section (6) of IGST Act and in some services (as

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the facts of the case. The issue put before us is in respect of a future transaction which would be on the lines thus –
The Applicant provides sales promotion and marketing support to Asahi Kasei group. For this, the Applicant has entered in to a Services Agreement dated 01 March 2013 with Asahi Japan and Marketing Services Agreement with various group companies of Asahi Kasei group. The scope of work under the Agreement is broadly stated below:
a. Collecting and analyzing information i.e. market analysis and supporting Asahi Kasei group in getting new business;
b. Providing marketing & administration support and back-office support (including accounting Support);
c. Networking i.e. co-ordinate with the government authorities and relevant universities to join relevant trade associations;
d. Supporting sales activity of Asahi Kasei group.
On this set of facts applicant has raised questions which are as under:-
Que 1: Whether the service supplied by the Applicant under the Service

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B agrees to provide Party A from time to time, as and when requested by Party A, with economic, industrial and technical information on the products falling under the category of the Products and their markets, trends and outlook together with similar information concerning such other industries in the Territory (i.e. India or any other mutually agreed territory) as Party A may from time to time request. In the event Party A should require more detailed information than that so provided by Party B, Party B shall exert its best efforts to obtain such further or more detailed information.
6. At such time and from time to time, as and when representatives of Party A, or its related business circles or customers visit the Territory and Party A so requests, Party B shall provide necessary assistance in liasoning and coordinating activities (including interpreting) to such representatives.
7. From time to time, as and when requested by Party A, Party B shall make market surveys of the P

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vices or both or securities on his own account
The concept of intermediary under the GST Act is substantially identical to the concept of intermediary under the erst while service tax regime. This concept has been explained in the Education Guide issued by CBEC in the year 2012 as under:
In order to determine whether a person is acting as an intermediary or not, following factors need to be considered:
Nature and value: An intermediary cannot alter the nature or value of the service, the supply of which he facilitates on behalf of his principal, although the principal may authorize the intermediary to negotiate a different price. Also, the principal must know the exact value at which the service is supplied (or obtained) on his behalf, and any discounts that the intermediary obtains must be passed back to the principal.
Separation of value: The value of an intermediary's service is invariably identifiable from the main supply of service that he is arranging. It can be based on an a

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possible situations here- one when he acts on his own account, and the other, when he acts as an intermediary.
When he acts on his own account (say, for an export shipment)
A freight forwarder provides domestic transportation within taxable territory (say, from the exporter's factory located in Pune to Mumbai port) as well as international freight service (say, from Mumbai port to the international destination), under a single contract, on his own account (i.e, he buys-in and sells freight transport as a principal), and charges a consolidated amount to the exporter. This is a service of transportation of goods for which the place of supply is the destination of goods. Since the destination of goods is outside taxable territory, this service will not attract service tax. Here, it is presumed that ancillary freight services (i.e. services ancillary to transportation- loading, unloading, handling etc.) are “bundled” with the principal service owing to a single contract or a single pric

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he matters related to the functions of the holding company, such as corporate accounting, corporate finance, corporate personnel and labor relations, corporate research and development, quality assurance and corporate intellectual property, and provide Party A with its report of the research thereon.
2. To provide with economic, industrial and technical information on the products falling under the category of the Products and their markets, trends and outlook together with similar information concerning such other industries in the Territory.
3 To provide necessary assistance in liasoning and coordinating activities (including interpreting) to such representatives.
4. To make market surveys of the Products in the Territory and report the results thereof to Party A.
5. All other related services pertaining to above services including, but not limited to, those services with regard to finance, accounting, and patent and legal matters.
We clearly find from the scrutiny of clause 15

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'.
As a corollary of this finding, we shall now move on to decide whether the services supplied by the applicant constitute composite supply and categories as 'support services'?
Applicant has strongly relied on the definition of composite supply as defined under section 2(30) of the GST, the Education Guide-2012 and the decision of ARA in case of Godday India Web Services Pvt. Ltd. [2016 (46) 806 (AAR) = 2016 (3) TMI 355 – AUTHORITY FOR ADVANCE RULINGS to submits that the supply of services as evidenced by the Services Agreement constitute composite supply with the Marketing Services as principal supply. The expression 'Composite Supply' has been defined under GST Act, as below –
(80) “composite supply” means a supply made by a taxable person to a recipient consisting of two or more taxable supplies of goods or services or both, or any combination thereof which are naturally bundled and supplied in conjunction with each other in the ordinary course of business, one of which is a pr

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upon the normal or frequent practices followed in the area of business to which services relate. Such normal and frequent practices adopted in a business can be ascertained from several indicators some of which are listed below –
The perception of the consumer or the service receiver. If large number of service receivers of such bundle of services reasonably expect such services to be provided as a package then such a package could be treated as naturally bundled in the ordinary course of business.
Majority of service providers in a particular area of business provide similar bundle of services. For example, bundle of catering on board and transport by air is a bundle offered by a majority of airlines.
The nature of the various services in a bundle of services will also help in determining whether the services are bundled in the ordinary course of business. If the nature of services is such that one of the services is the main service and the other services combined with such servi

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rally bundled in the ordinary course of business. Each case has to be individually examined in the backdrop of several factors some of which are outlined above.
In the present case from the Services Agreement we find that applicant proposes to provide two different categories of services which are as below:
A) Research on the functioning of the company : Services pertaining to research on the matters related to the functions of the holding company such as – corporate accounting, corporate finance, corporate personnel and labour relations, corporate research and development, quality assurance and corporate intellectual property, and provide Party A with its report of the research thereon
B) Information on the markets in the territory : Services pertaining to information on the markets in the territory includes –
i) Economic, industrial and technical information on the products falling under the category of the Products and their markets, trends and outlook together with similar inf

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–
i) Economic, industrial and technical information on the products falling under the category of the Products and their markets, trends and outlook together with similar information concerning such other industries in the Territory.
ii) To provide necessary assistance in business activities (including interpreting) to such representatives.
iii) To undertake market surveys of the Products in the Territory and report the results thereof to Party
iv) Ancillary services to all above services, including, but not limited to, those services with regard to finance, accounting, and patent and legal matters.”
From the nature of services it is evident that these services are not interdependent but could be provided as standalone services. In as much as we can say that applicant proposes to provide two distinct category of supplies. And as such services provided by this agreement can not constitute 'composite supply' as defined under the GST Act. However, we observe that services menti

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services to determine the most appropriate service tariff code: 
Sr.no.
Chapter, section, heading or group
Service code (tariff)
Service description
296
Heading 9983
 
Other professional, technical and business services
297
Group 99831
 
Management consulting and management services; information technology services
298
 
998311
Management consulting and management services including financial, strategic, human resources, marketing, operations and supply chain management
299
 
998312
Business consulting services including public relations services
300
 
998313
Information technology consulting and support services
301
 
998314
Information technology design and development services
302
 
998315
Hosting and information technology infrastructure provisioning services
303
 
998316
Information technology infrastructure and network management services
304
 
998319
Other information technology serv ices n

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research services
347
 
998372
Public opinion polling services
 
Sr.no.
Chapter, section, heading or group
Service code (tariff)
Service description
444
Group 99859
 
Other support services
445
 
998591
Credit reporting and rating services
446
 
998592
Collection agency services
447
 
998593
Telephone-based support services
448
 
998594
Combined office administrative services
449
 
998595
Specialised office support services such as duplicating services, mailing services, document preparation and the like
450
 
998596
Events, exhibitions, conventions and trade shows or organisation and assistance services
451
 
998597
Landscape care and maintenance services
452
 
998598
Other information services nowhere else classified
453
 
998599
Other support services nowhere else classified
From the detailed examination of above table we find that the services provided by the applicant in

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services to all above services, including, but not limited to, those services with regard to finance, accounting, and patent and legal matters would fall under service code tariff 99837 with service description market research services.
Question: – 2. Whether the service supplied by the Applicant under the Marketing Services Agreement dated 1 December 2012 constitute a supply of “Support services” falling under HSN code 9985 or “Intermediary service” classifiable under HSN code 9961 / 9962?
Applicant entered into 'Marketing Service Agreement' dated 1st December 2012 with Bioprocess Division of Asahi Kasei Medical Co. Japan (in short AM). As per the preamble the services are proposed to be provided with the sole intention to develop/ argument sales of bioprocess consumables and for that purpose AM desires to secure market support services offered by the Applicant. Applicant proposes to provide services which shall comprise of following activities.
“a) Conducting market surveys and pr

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(ire, the Applicant) nor any of its representatives shall have any authority to conduct negotiations on behalf of the service recipient;
f) Connecting Customers with representatives of the service recipient for the purpose of obtaining orders and establishing and maintaining close commercial relationships between service recipient and customers;
g) Providing staff of the service recipient or its customers visiting the territory with such assistance as may be reasonably requested by them, including but not limited to providing information, guide, escort and interpreting services during Customers visits; for the sake of clarity, the premises of AKI will not be the premises of the service recipient and the same shall not be made available to employees or other personnel of service recipient who may visit India;
h) Providing information on products and its functioning or similar such services to service recipient's customers and notifying service recipient of any consumer complaints;
i

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t applicant shall not carry out any act that will be binding on AM, such as conclusion of contracts, acceptance of sales order, invoicing, determination of sales prices, rebates or discounts, resolution of customers complaints or settlement or disputes with the customers. On this factual matrix we discuss whether the provision of services constitute 'intermediary' as defined under section 2(16) of IGST Act. The definition is already reproduced in preceding para of this ruling.
The concept of intermediary under the GST Act is substantially identical to the concept of intermediary under the erst while service tax regime. This concept has been explained in the Education Guide issued by CBEC in the year 2012 which we have already reproduced in this ruling.
We find from the scrutiny of Marketing Services Agreement that the relationship between the parties is that of independent contractors meaning that the agreement does not intend to create relationship of principal and agent. The applic

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= 2016 (3) TMI 355 – AUTHORITY FOR ADVANCE RULINGS to submit that the supply of services as evidenced by the Marketing Services Agreement Constitute composite supply with Marketing Services as principal supply. The expression 'Composite Supply' has been defined under GST Act, which we have already reproduced in the preceding paras.
Under the GST Act, a composite supply would mean a supply consisting of two or more taxable supplies of goods or services or both or any combination thereof which are naturally bundled and supplied in conjunction with each other in the ordinary course of business, one of which is a principal supply. We find that applicant proposes more than two taxable supplies to the recipient. In respect of supply which consists of more than two taxable supplies and to fall within the ambit of composite supply, it will be necessary to determine whether a particular supply is naturally bundled in the ordinary course of business and what constitutes principal supply. The co

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otential for recipient of services.
With regards to the classification of services under the rate notification 11/2017 as amended from time to time, and the annexure of classification of services we find following entries that are relevant for the present purpose.
Sr.no.
Chapter, section, heading or group
Service code (tariff)
Service description
345
Group 99837
 
Market research and public opinion polling services
346
 
998371
Market research services
347
 
998372
Public opinion polling services
From the perusal of above table and the finding by us as above, we hold that the services the applicant proposes to provide would fall under Group 99837 as Market Research Services.
Question: – 3. Whether the services provided by the Applicant is an export of services as defined under Section 2(6) of the Integrated Goods and Services Tax Act 2017?
The expression export of services has been defined under the GST Act as below:
“(6) export of services” means th

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of the recipient of services i.e. AM Japan, which is outside India. As the applicant satisfies all the ingredients of 'export of services' the service provided by the 'Marketing Services Agreement' would qualify as an export of taxable service.
05.  In view of the extensive deliberations as held hereinabove, we pass an order as follows:
ORDER
(Under section 98 of the Central Goods and Services Tax Act, 2017 and the Maharashtra Goods and Services Tax Act, 2017)
NO.GST-ARA-35/2018-19/B-108
Mumbai, dt. 05/09/2018
For reasons as discussed in the body of the order, the questions are answered thus
Question:-1. Whether the service supplied by the Applicant under the Service Agreement dated 1 March 2013 constitute a supply of “Support services” falling under HSN code 9985 “Intermediary service” classifiable under HSN code 9961 /9962?
Answer: (i) The services provided by the applicant in the nature of Research on the matter related to functioning of the holding of company such as

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Eighth Amendment 2018 proposes updates to CGST Rules 2017 to enhance compliance and tax administration under GST.
Notifications
GST
Seeks to make amendments (Eighth Amendment, 2018) to the CG

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GST ON GOODS EXPORTED ( GOVT AUTHORITIES) FOR TRIALS
Query (Issue) Started By: – ANITA BHADRA Dated:- 4-9-2018 Last Reply Date:- 5-9-2018 Goods and Services Tax – GST
Got 3 Replies
GST
Dear Sir/Madam '
What is the GST implication of goods export for Trials . These goods are being export to Government Authorities and will be back after trials within specified time limit .
Regards
Reply By KASTURI SETHI:
The Reply:
In my view , same export procedure is to be followed. It is a

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GST on overseas air tickets violates intl norms: IATA chief
GST
Dated:- 4-9-2018

New Delhi, Sep 4 (PTI) Levying GST on overseas air tickets violates international norms and also weakens the competitiveness of carriers, IATA chief Alexandre de Juniac said Tuesday.
He also flagged various concerns about the Indian aviation sector, including high jet fuel prices, infrastructure woes and privatisation of airports.
The International Airport Transport Association (IATA) is a grouping o

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Seeks to extend the time limit for making the declaration in FORM GST ITC-04
40/2018 Dated:- 4-9-2018 Central GST (CGST)
GST
CGST
CGST
Superseded vide Notification No. 59/2018 – Central Tax dated 26-10-2018
Government of India
Ministry of Finance
Department of Revenue
Central Board of Indirect Taxes and Customs
Notification No. 40/2018 – Central Tax
New Delhi, the 4th September, 2018
G.S.R. 832 (E).- In pursuance of section 168 of the Central Goods and Services Tax Act, 201

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Seeks to waive the late fee paid for specified classes of taxpayers for FORM GSTR-3B, FORM GSTR-4 and FORM GSTR-6
41/2018 – Central Tax Dated:- 4-9-2018 Central GST (CGST)
GST
CGST
CGST
Government of India
Ministry of Finance
Department of Revenue
Central Board of Indirect Taxes and Customs
Notification No. 41/2018 – Central Tax
New Delhi, the 4th September, 2018
G.S.R. 833 (E).- In exercise of the powers conferred by section 128 of the Central Goods and Services Tax Act, 2017 (12 of 2017), the Central Government, on the recommendations of the Council, hereby waives the late fee paid under section 47 of the said Act, by the following classes of taxpayers:-
(i) the registered persons whose return in FORM GSTR-3B of th

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Seeks to extend the time limit for making the declaration in FORM GST ITC-01 for specified classes of taxpayers
42/2018 – Central Tax Dated:- 4-9-2018 Central GST (CGST)
GST
CGST
CGST
Government of India
Ministry of Finance
Department of Revenue
Central Board of Indirect Taxes and Customs
Notification No.42/2018 – Central Tax
New Delhi, the 4th September 2018
G.S.R. 834 (E).- In pursuance of section 168 of the Central Goods and Services Tax Act, 2017 (12 of 2017) and claus

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Seeks to make amendments (Eighth Amendment, 2018) to the CGST Rules, 2017
39/2018 Dated:- 4-9-2018 Central GST (CGST)
GST
CGST
CGST
Government of India
Ministry of Finance
Department of Revenue
Central Board of Indirect Taxes and Customs
Notification No. 39/2018 – Central Tax
New Delhi, the 4th September, 2018
G.S.R. 831 (E).- In exercise of the powers conferred by section 164 of the Central Goods and Services Tax Act, 2017 (12 of 2017), the Central Government hereby makes the following rules further to amend the Central Goods and Services Tax Rules, 2017, namely:-
(1) These rules may be called the Central Goods and Services Tax (Eighth Amendment) Rules, 2018.
(2) Save as otherwise provided in these rules, they shall come into force on the date of their publication in the Official Gazette.
2. In the Central Goods and Services Tax Rules, 2017, (hereinafter referred to as the said rules), in rule 22, in sub-rule (4), the following proviso shall be inserted, name

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“or in batches or lots” shall be inserted.
5. In the said rules, in rule 89, in sub-rule (4), for clause (E), the following clause shall be substituted, namely:-
'(E) “Adjusted Total Turnover” means the sum total of the value of-
(a) the turnover in a State or a Union territory, as defined under clause (112) of section 2, excluding the turnover of services; and
(b) the turnover of zero-rated supply of services determined in terms of clause (D) above and non-zero-rated supply of services,
excluding-
(i) the value of exempt supplies other than zero-rated supplies; and
(ii) the turnover of supplies in respect of which refund is claimed under sub-rule (4A) or sub-rule (4B) or both, if any,
during the relevant period.'.
6. In the said rules, with effect from the 23rd October, 2017, in rule 96, for sub-rule (10), the following sub-rule shall be substituted, namely:-
“(10) The persons claiming refund of integrated tax paid on exports of goods or services should not have –
(a) rece

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otification No. 79/2017-Customs, dated the 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 the 13th October, 2017.”.
7. In the said rules, in rule 138A, in sub-rule (1), after the proviso the following proviso shall be inserted, namely:-
“Provided further that in case of imported goods, the person in charge of a conveyance shall also carry a copy of the bill of entry filed by the importer of such goods and shall indicate the number and date of the bill of entry in Part A of FORM GST EWB-01.”.
8. In the said rules, for FORM GST REG-20, the following FORM shall be substituted, namely:-
“FORM GST REG-20
[See rule 22(4)]
Reference No. –
Date –
To
Name
Address
GSTIN/UIN
Show Cause Notice No.
Date-
Order for dropping the proceedings for cancellation of registration
This has reference to your reply filed vide ARN – dated in response to the show cause notice referred to above. Upon consid

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Details of inputs/capital goods sent for job work (includes inputs/capital goods directly sent to place of business /premises of job worker)
GSTIN / State in case of unregister ed job worker
Challan No.
Challan date
Description of goods
UQC
Quantity
Taxable value
Type of goods (Inputs/capital goods)
Rate of tax (%)
Central tax
State/UT tax
Integrated tax
Cess
1
2
3
4
5
6
7
8
9
10
11
12
5. Details of inputs/capital goods received back from job worker or sent out from business place of job work
(A) Details of inputs/ capital goods received back from job worker to whom such goods were sent for job work; and losses and wastes:
GSTIN /State of job worker if unregistered
Challan No. issued by job worker under which goods have been receive d back
Date of challan issued by job worker under which goods have been receive d back
Description of goods
UQC
Quantity
Original challan No. under which goods have been sent for job work
Original challan d

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of job worker if unregister ed
Invoice No. in case supplied from premise s of job worker issued by the Principal
Invoice date in case supplied from premise s of job worker issued by the Principal
Description of goods
UQC
Quantity
Original challan no. under which goods have been sent for job work
Original challan date under which goods have been sent for job work
Nature of job work done by job worker
Losses & wastes
UQC
Quantity
1
2
3
4
5
6
7*
8*
9
10
11
Instructions:
1. Multiple entry of items for single challan may be filled.
2. Columns (2) & (3) in Table (A) and Table (B) are mandatory in cases where fresh challan are required to be issued by the job worker. Otherwise, columns (2) & (3) in Table (A) and Table (B) are optional.
3. Columns (7) & (8) in Table (A), Table (B) and Table (C) may not be filled where one-to-one correspondence between goods sent for job work and goods received back after job work is not possible.
6. Verification
I hereby s

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persons (B2B)
C
Zero rated supply (Export) on payment of tax (except supplies to SEZs)
D
Supply to SEZs on payment of tax
E
Deemed Exports
F
Advances on which tax has been paid but invoice has not been issued (not covered under (A) to (E) above)
G
Inward supplies 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
5
Details of Outward supplies on which tax is not payable as declared in returns filed during the financial year
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 revers

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es received from SEZs)
Inputs
Capital Goods
Input Services
C
Inward supplies received from unregistered persons liable to reverse charge (other than B above) on which tax is paid & ITC availed
Inputs
Capital Goods
Input Services
D
Inward supplies received from 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)
7
Details of ITC Reversed and Ineligible ITC

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ITC available but not availed on import of goods (Equal to I)
K
Total ITC to be lapsed in current financial year (E + F + J)
< Auto >
< Auto >
< Auto >
< Auto >
Pt. IV
Details of tax paid as declared in returns filed during the financial year
9
Description
Tax Payable
Paid through cash
Paid through ITC
Central Tax
State Tax / UT Tax
Integrated Tax
Cess
1
2
3
4
5
6
7
Integrated Tax
Central Tax
State/UT Tax
Cess
Interest
Late fee
Penalty
Other
Pt. V
Particulars of the transactions for the previous FY declared in returns of April to September of current FY or upto date of filing of annual return of previous FY whichever is earlier
Description
Taxable Value
Central Tax
State Tax / UT Tax
Integrated Tax
Cess
1
2
3
4
5
6
10
Supplies / tax declared through Amendments (+) (net of debit notes)
11
Supplies / tax reduced through Amendments (-) (net of credit notes)
12
Reversal of ITC availed during previous financial year
13
ITC avai

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pplies
HSN Code
UQC
Total Quantity
Taxable Value
Rate of Tax
Central Tax
State Tax / UT Tax
Integrated Tax
Cess
1
2
3
4
5
6
7
8
9
18
HSN Wise Summary of Inward supplies
HSN Code
UQC
Total Quantity
Taxable Value
Rate of Tax
Central Tax
State Tax / UT Tax
Integrated Tax
Cess
1
2
3
4
5
6
7
8
9
19
Late fee payable and paid
Description
Payable
Paid
1
2
3
A
Central Tax
B
State Tax
Verification:
I hereby solemnly affirm and declare that the information given herein above is true and correct to the best of my knowledge and belief and nothing has been concealed there from and in case of any reduction in output tax liability the benefit thereof has been/will be passed on to the recipient of supply.
Signature
Place
Name of Authorised Signatory
Date
Designation / Status
Instructions: –
1. Terms used:
a. GSTIN: Goods and Services Tax Identification Number
b. UQC: Unit Quantity Code
c. HSN: Harmonized System of Nomenclature Co

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hall be declared here. These will include supplies made through E-Commerce operators but shall not include supplies on which tax is to be paid by the recipient on reverse charge basis. Details of debit and credit notes are to be mentioned separately. Table 4A and Table 4C of FORM GSTR-1 may be used for filling up these details.
4C
Aggregate value of exports (except supplies to SEZs) on which tax has been paid shall be declared here. Table 6A of FORM GSTR-1 may be used for filling up these details.
4D
Aggregate value of supplies to SEZs on which tax has been paid shall be declared here. Table 6B of GSTR-1 may be used for filling up these details.
4E
Aggregate value of supplies in the nature of deemed exports on which tax has been paid shall be declared here. Table 6C of FORM GSTR-1 may be used for filling up these details.
4F
Details of all unadjusted advances i.e. advance has been received and tax has been paid but invoice has not been issued in the current year shall be declar

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up these details.
4K & 4L
Details of amendments made to B to B supplies (4B), exports (4C), supplies to SEZs (4D) and deemed exports (4E), credit notes (4I), debit notes (4J) and refund vouchers shall be declared here. Table 9A and Table 9C of FORM GSTR-1 may be used for filling up these details.
5A
Aggregate value of exports (except supplies to SEZs) on which tax has not been paid shall be declared here. Table 6A of FORM GSTR-1 may be used for filling up these details.
5B
Aggregate value of supplies to SEZs on which tax has not been paid shall be declared here. Table 6B of GSTR-1 may be used for filling up these details.
5C
Aggregate value of supplies made to registered persons on which tax is payable by the recipient on reverse charge basis. Details of debit and credit notes are to be mentioned separately. Table 4B of FORM GSTR-1 may be used for filling up these details.
5D,5E and 5F
Aggregate value of exempted, Nil Rated and Non-GST supplies shall be declared here. Table

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the current year. However, this shall not include the aggregate value of inward supplies on which tax is paid by the recipient (i.e. by the person filing the annual return) on reverse charge basis.
4. Part III consists of the details of all input tax credit availed and reversed in the financial year for which the annual return is filed. The instructions to fill Part III are as follows:
Table No.
Instructions
6A
Total input tax credit availed in Table 4A of FORM GSTR-3B for the taxpayer would be auto-populated here.
6B
Aggregate value of input tax credit availed on all inward supplies except those on which tax is payable on reverse charge basis but includes supply of services received from SEZs shall be declared here. It may be noted that the total ITC availed is to be classified as ITC on inputs, capital goods and input services. Table 4(A)(5) of FORM GSTR-3B may be used for filling up these details.
This shall not include ITC which was availed, reversed and then reclaimed i

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iled is to be classified as ITC on inputs and capital goods. Table 4(A)(1) of FORM GSTR-3B may be used for filling up these details.
6F
Details of input tax credit availed on import of services (excluding inward supplies from SEZs) shall be declared here. Table 4(A)(2) of FORM GSTR-3B may be used for filling up these details.
6G
Aggregate value of input tax credit received from input service distributor shall be declared here. Table 4(A)(4) of FORM GSTR-3B may be used for filling up these details.
6H
Aggregate value of input tax credit availed, reversed and reclaimed under the provisions of the Act shall be declared here.
6J
The difference between the total amount of input tax credit availed through FORM GSTR-3B and input tax credit declared in row B to H shall be declared here. Ideally, this amount should be zero.
6K
Details of transition credit received in the electronic credit ledger on filing of FORM GST TRAN-I including revision of TRAN-I (whether upwards or downwar

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supplies (other than imports and inwards supplies liable to reverse charge but includes services received from SEZs) received during 2017-18 and reflected in FORM GSTR-2A (table 3 & 5 only) shall be auto-populated in this table. This would be the aggregate of all the input tax credit that has been declared by the corresponding suppliers in their FORM GSTR-I.
8B
The input tax credit as declared in Table 6B and 6H shall be auto-populated here.
8C
Aggregate value of input tax credit availed on all inward supplies (except those on which tax is payable on reverse charge basis but includes supply of services received from SEZs) received during July 2017 to March 2018 but credit on which was availed between April to September 2018 shall be declared here. Table 4(A)(5) of FORM GSTR-3B may be used for filling up these details.
8E & 8F
Aggregate value of the input tax credit which was available in FORM GSTR2A (table 3 & 5 only) but not availed in any of the FORM GSTR-3B returns shall

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to September 2018 for the FY 2017-18 shall be declared), whichever is earlier. The instructions to fill Part V are as follows:
Table No.
Instructions
10 & 11
Details of additions or amendments to any of the supplies already declared in the returns of the previous financial year but such amendments were furnished in Table 9A, Table 9B and Table 9C of FORM GSTR-1 of April to September of the current financial year or date of filing of Annual Return for the previous financial year, whichever is earlier shall be declared here.
12
Aggregate value of reversal of ITC which was availed in the previous financial year but reversed in returns filed for the months of April to September of the current financial year or date of filing of Annual Return for previous financial year , whichever is earlier shall be declared here. Table 4(B) of FORM GSTR-3B may be used for filling up these details.
13
Details of ITC for goods or services received in the previous financial year but ITC for the sa

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non-GST refund claims.
15E, 15F and 15G
Aggregate value of demands of taxes for which an order confirming the demand has been issued by the adjudicating authority shall be declared here. Aggregate value of taxes paid out of the total value of confirmed demand as declared in 15E above shall be declared here. Aggregate value of demands pending recovery out of 15E above shall be declared here.
16A
Aggregate value of supplies received from composition taxpayers shall be declared here. Table 5 of FORM GSTR-3B may be used for filling up these details.
16B
Aggregate value of all deemed supplies from the principal to the job-worker in terms of sub-section (3) and sub-section (4) of Section 143 of the CGST Act shall be declared here.
16C
Aggregate value of all deemed supplies for goods which were sent on approval basis but were not returned to the principal supplier within one eighty days of such supply shall be declared here.
17 & 18
Summary of supplies effected and received again

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nd inward supplies declared in returns filed during the financial year
Description
Turnover
Rate of Tax
Central Tax
State / UT Tax
Integrated tax
Cess
1
2
3
4
5
6
7
6
Details of Outward supplies on which tax is payable as declared in returns filed during the financial year
A
Taxable
B
Exempted, Nil-rated
C
Total
7
Details of inward supplies on which tax is payable on reverse charge basis (net of debit/credit notes) declared in returns filed during the financial year
Description
Taxable Value
Central Tax
State Tax / UT Tax
Integrated Tax
Cess
1
2
3
4
5
6
A
Inward supplies liable to reverse charge received from registered persons
B
Inward supplies liable to reverse charge received from unregistered persons
C
Import of services
D
Net Tax Payable on (A), (B) and (C) above
8
Details of other inward supplies as declared in returns filed during the financial year
A
Inward supplies from registered persons (other than 7A above)
B
Import

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2
3
Integrated Tax
Central Tax
State/UT Tax
Cess
Interest
Pt. V
Other Information
15
Particulars of Demands and Refunds
Description
Central Tax
State Tax / UT Tax
Integrated Tax
Cess
Interest
Penalty
Late Fee / Others
1
2
3
4
5
6
7
8
A
Total Refund claimed
B
Total Refund sanctioned
C
Total Refund Rejected
D
Total Refund Pending
E
Total demand of taxes
F
Total taxes paid in respect of E above
G
Total demands pending out of E above
16
Details of credit reversed or availed
Description
Central Tax
State Tax / UT Tax
Integrated Tax
Cess
1
2
3
4
5
A
Credit reversed on opting in the composition scheme (-)
B
Credit availed on opting out of the composition scheme (+)
17
Late fee payable and paid
Description
Payable
Paid
1
2
3
A
Central Tax
B
State Tax
Verification:
I hereby solemnly affirm and declare that the information given herein above is true and correct to the best of my knowledge and belief and nothing has b

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:
Table No.
Instructions
6A
Aggregate value of all outward supplies net of debit notes / credit notes, net of advances and net of goods returned for the entire financial year shall be declared here. Table 6 and Table 7 of FORM GSTR-4 may be used for filling up these details.
6B
Aggregate value of exempted, Nil Rated and Non-GST supplies shall be declared here.
7A
Aggregate value of all inward supplies received from registered persons on which tax is payable on reverse charge basis shall be declared here. Table 4B, Table 5 and Table 8A of FORM GSTR-4 may be used for filling up these details.
7B
Aggregate value of all inward supplies received from unregistered persons (other than import of services) on which tax is payable on reverse charge basis shall be declared here. Table 4C, Table 5 and Table 8A of FORM GSTR-4 may be used for filling up these details.
7C
Aggregate value of all services imported during the financial year shall be declared here. Table 4D and Table 5 of

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nished in Table 5 (relating to inward supplies) or Table 7 (relating to outward supplies) of FORM GSTR- 4 of April to September of the current financial year or upto the date of filing of Annual Return for the previous financial year, whichever is earlier shall be declared here.
5. Part V consists of details of other information. The instruction to fill Part V are as follows:
Table No.
Instructions
15A, 15B, 15C and 15D
Aggregate value of refunds claimed, sanctioned, rejected and pending for processing shall be declared here. Refund claimed will be the aggregate value of all the refund claims filed in the financial year and will include refunds which have been sanctioned, rejected or are pending for processing. Refund sanctioned means the aggregate value of all refund sanction orders. Refund pending will be the aggregate amount in all refund application for which acknowledgement has been received and will exclude provisional refunds received. These will not include details of non

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Scope of Principal-agent relationship in the context of Schedule I of the CGST Act -regarding.
57/31/2018 Dated:- 4-9-2018 CGST – Circulars
GST
Circular No. 57/31/2018-GST
CBEC-20/16/4/2018-GST
Government of India
Ministry of Finance
Department of Revenue
Central Board of Indirect Taxes and Customs
GST Policy Wing
New Delhi, Dated the 4th September, 2018
To,
The Principal Chief Commissioners/ Chief Commissioners/ Principal Commissioners/ Commissioners of Central Tax (All) / The Principal Directors General/ Directors General (All)
Madam/Sir,
Subject: Scope of Principal-agent relationship in the context of Schedule I of the CGST Act -regarding.
In terms of Schedule I of the Central Goods and Services Tax Act, 2017 (hereinafter referred to as the “CGST Act”), the supply of goods by an agent on behalf of the principal without consideration has been deemed to be a supply. In this connection, various representations have been received regarding the scope and ambit of the

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the CGST Act as follows:
“agent” means a person, including a factor, broker, commission agent, arhatia, del credere agent, an auctioneer or any other mercantile agent, by whatever name called, who carries on the business of supply or receipt of goods or services or both on behalf of another.
4. The following two key elements emerge from the above definition of agent:
a) the term „agent‟ is defined in terms of the various activities being carried out by the person concerned in the principal-agent relationship; and
b) the supply or receipt of goods or services has to be undertaken by the agent on behalf of the principal.
From this, it can be deduced that the crucial component for covering a person within the ambit of the term “agent” under the CGST Act is corresponding to the representative character identified in the definition of “agent” under the Indian Contract Act, 1872.
5. Further, the two limbs of any supply under GST are “consideration” and “in the course or fu

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e require “consideration” to consider it as supply and thus, be liable to GST. Secondly, the element identified in the definition of “agent”, i.e., “supply or receipt of goods on behalf of the principal” has been retained in this entry.
7. It may be noted that the crucial factor is how to determine whether the agent is wearing the representative hat and is supplying or receiving goods on behalf of the principal. Since in the commercial world, there are various factors that might influence this relationship, it would be more prudent that an objective criteria is used to determine whether a particular principal-agent relationship falls within the ambit of the said entry or not. Thus, the key ingredient for determining relationship under GST would be whether the invoice for the further supply of goods on behalf of the principal is being issued by the agent or not. Where the invoice for further supply is being issued by the agent in his name then, any provision of goods from the principal

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nd the goods and issue the invoice directly to Mr. A. In this scenario, Mr. B is only acting as the procurement agent, and has in no way involved himself in the supply or receipt of the goods. Hence, in accordance with the provisions of this Act, Mr.B is not an agent of Mr. A for supply of goods in terms of Schedule I.
Scenario 2
M/s XYZ, a banking company, appoints Mr. B (auctioneer) to auction certain goods. The auctioneer arranges for the auction and identifies the potential bidders. The highest bid is accepted and the goods are sold to the highest bidder by M/s XYZ. The invoice for the supply of the goods is issued by M/s XYZ to the successful bidder. In this scenario, the auctioneer is merely providing the auctioneering services with no role played in the supply of the goods. Even in this scenario, Mr.B is not an agent of M/s XYZ for the supply of goods in terms of Schedule I.
Scenario 3
Mr. A, an artist, appoints M/s B (auctioneer) to auction his painting. M/s B arranges for

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uce by utilizing the services of Mr B who is a commission agent as per the Agricultural Produce Marketing Committee Act (APMC Act) of the State. Mr B identifies the buyers and sells the agricultural produce on behalf of Mr. A for which he charges a commission from Mr. A. As per the APMC Act, the commission agent is a person who buys or sells the agricultural produce on behalf of his principal, or facilitates buying and selling of agricultural produce on behalf of his principal and receives, by way of remuneration, a commission or percentage upon the amount involved in such transaction.
In cases where the invoice is issued by Mr. B to the buyer, the former is an agent covered under Schedule I. However, in cases where the invoice is issued directly by Mr. A to the buyer, the commission agent (Mr. B) doesn‟t fall under the category of agent covered under Schedule I.
9. In scenario 1 and scenario 2, Mr. B shall not be liable to obtain registration in terms of clause (vii) of sectio

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to tax or wholly exempt under GST. 1[Further, according to clause (vii) of section 24 of the CGST Act, a person is liable for mandatory registration if he makes taxable supply of goods or services or both on behalf of other taxable persons. Accordingly, the requirement of compulsory registration for commission agent, under the said clause shall arise when both the following conditions are satisfied, namely: –
(a) the principal should be a taxable person; and
(b) the supplies made by the commission agent should be taxable.
Generally, a commission agent under APMC Act makes supplies on behalf of an agriculturist. Further, as per provisions of clause (b) of sub-section (1) of section 23 of the CGST Act an agriculturist who supplies produce out of cultivation of land is not liable for registration and therefore does not fall within the ambit of the term 'taxable person'. Thus a commission agent who is making supplies on behalf of such an agriculturis

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Recovery of arrears of wrongly availed CENVAT credit under the existing law and inadmissible transitional credit – regarding
58/32/2018 Dated:- 4-9-2018 CGST – Circulars / Ordes
GST
Circular No. 58/32/2018-GST
CBEC-20/16/4/2018-GST
Government of India
Ministry of Finance
Department of Revenue
Central Board of Indirect Taxes and Customs
GST Policy Wing
****
New Delhi, Dated the 4th September, 2018
To,
The Principal Chief Commissioners/Chief Commissioners/Principal Commissioners/ Commissioners of Central Tax (All)
The Principal Directors General/ Directors General (All)
Subject: Recovery of arrears of wrongly availed CENVAT credit under the existing law and inadmissible transitional credit – regarding
Various representat

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r the existing law shall be made as central tax liability to be paid through the utilization of the amount available in the electronic credit ledger or electronic cash ledger of the registered person, and the same shall be recorded in Part II of the Electronic Liability Register (FORM GST PMT-01).
3. 1[It may be noted that all such liabilities may be discharged by the taxpayers, either voluntarily in FORM GST DRC-03 or may be recovered vide order uploaded in FORM GST DRC-07, and payment against the said order shall be made in FORM GST DRC-03. It is further clarified that the alternative method of reversing the wrongly availed CENVAT credit under the existing law and inadmissible transitional credit through Table 4(B)(2) of FORM GSTR-3B wou

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Clarification on refund related issues- regarding
59/33/2018-GST Dated:- 4-9-2018 CGST – Circulars / Ordes
GST
Superseded Vide Circular No. 125/44/2019-GST dated 18-11-2019
Circular No. 59/33/2018-GST
F. No. 349/21/2016-GST
Government of India
Ministry of Finance
Department of Revenue
Central Board of Indirect Taxes and Customs
GST Policy Wing
New Delhi, Dated the 4th September, 2018
To,
The Principal Chief Commissioners/Chief Commissioners/Principal Commissioners/ Commissioners of Central Tax (All)/The Principal Directors General/ Directors General (All)/ The Principal Chief Controller of Accounts (CBIC)
Madam/Sir,
Subject: Clarification on refund related issues- regarding
Various representations have been received seeking clarification on issues relating to refund. In order to clarify these issues and to ensure uniformity in the implementation of the provisions of law across the field formations, the Board, in exercise of its powers conferred by section 168 (1)

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h requirement is cumbersome and increases their compliance cost, especially where the number of invoices is large.
2.3. In view of the difficulties being faced by the claimants of refund, it has been decided that the refund claim shall be accompanied by a print-out of FORM GSTR-2A of the claimant for the relevant period for which the refund is claimed. The proper officer shall rely upon FORM GSTR-2A as an evidence of the accountal of the supply by the corresponding supplier in relation to which the input tax credit has been availed by the claimant. It may be noted that there may be situations in which FORM GSTR-2A may not contain the details of all the invoices relating to the input tax credit availed, possibly because the supplier's FORM GSTR-1 was delayed or not filed. In such situations, the proper officer may call for the hard copies of such invoices if he deems it necessary for the examination of the claim for refund. It is emphasized that the proper officer shall not insist on t

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9(4) or rule 89(5) of the Central Goods and Services Tax Rules, 2017 (hereinafter referred to as the “CGST Rules”) [formula is applied on the consolidated amount of ITC, i.e. Central tax + State tax/Union Territory tax +Integrated tax + Cess(wherever applicable)];
b) The balance in the electronic credit ledger of the claimant at the end of the tax period for which the refund claim is being filed after the return for the said period has been filed; and
c) The balance in the electronic credit ledger of the claimant at the time of filing the refund application.
3.2. After calculating the least of the three amounts, as detailed above, the equivalent amount is to be debited from the electronic credit ledger of the claimant in the following order:
a) Integrated tax, to the extent of balance available;
b) Central tax and State tax/Union Territory tax, equally to the extent of balance available and in the event of a shortfall in the balance available in a particular electronic credit ledg

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d with para 3.3) above, and the ARN is generated on the common portal.
4. Re-credit of electronic credit ledger in case of rejection of refund claim:
4.1. In case of rejection of claim for refund of unutilized input tax credit on account of ineligibility of the said credit under sub-sections (1),(2) or (5) of section 17 of the CGST Act, or under any other provision of the Act and rules made thereunder the proper officer shall order for the rejected amount to be re-credited to the electronic credit ledger of the claimant using FORM GST RFD-01B. For recovery of this amount, a demand notice shall have to be simultaneously issued to the claimant under section 73 or 74 of the CGST Act, as the case may be. In case the demand is confirmed by an order issued under sub-section (9) of section 73, or sub-section (9) of section 74 of the CGST Act, as the case may be, the said amount shall be added to the electronic liability register of the claimant through FORM GST DRC- 07. Alternatively, the c

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claim of ₹ 100, only ₹ 80 is sanctioned (₹ 15 is rejected on account of ineligible ITC and ₹ 5 is rejected on account of any other reason). As described above, ₹ 15 would be re-credited with simultaneous issue of notice under section 73 or 74 of the CGST Act for recovery of ineligible ITC. ₹ 5 would be re-credited (through FORM GST RFD-01B) only after the receipt of an undertaking from the claimant to the effect that he shall not file an appeal or in case he files an appeal, the same is finally decided against the claimant.
5. Scope of rule 96(10) of the CGST Rules:
5.1 Rule 96(10) of the CGST Rules, as amended retrospectively by notification No. 39/2018-Central Tax, dated 04.09.2018 provides that registered persons, including importers, who are directly purchasing/importing supplies on which the benefit of reduced tax incidence or no tax incidence under certain specified notifications has been availed, shall not be eligible for refund of integrat

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, applies only to those purchasers/importers who are directly purchasing/importing supplies on which the benefit of certain notifications, as specified in the said sub-rule, has been availed.
6 Disbursal of refund amount after sanctioning by the proper officer:
6.1 A few cases have come to notice where a tax authority, after receiving a sanction order from the counterpart tax authority (Centre or State), has refused to disburse the relevant sanctioned amount calling into question the validity of the sanction order on certain grounds. E.g. a tax officer of one administration has sanctioned, on a provisional basis, 90 per cent. of the amount claimed in a refund application for unutilized ITC on account of exports. On receipt of the provisional sanction order, the tax officer of the counterpart administration has observed that the provisional refund of input tax credit has been incorrectly sanctioned for ineligible input tax credit and has therefore, refused to disburse the tax amount p

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tus of refund claim after issuance of deficiency memo:
7.1 Rule 90(3) of the CGST Rules provides that where any deficiencies in the application for refund are noticed, the proper officer shall communicate the deficiencies to the claimant in FORM GST RFD-03, requiring him to file a fresh refund application after rectification of such deficiencies. Further, rule 93(1) of the CGST Rules provides that where any deficiencies have been communicated under rule 90(3), the amount debited under rule 89 (3) shall be recredited to the electronic credit ledger. Therefore, the intent of the law is very clear that in case a deficiency memo in FORM GST RFD-03 has been issued, the refund claim will have to be filed afresh.
7.2 It has been learnt that certain field formations are issuing show cause notices to the claimants in cases where the refund application is not re-submitted after the issuance of a deficiency memo. These show-cause-notices are being subsequently adjudicated and orders are being p

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E-way bill in case of storing of goods in godown of transporter – regarding
61/35/2018 Dated:- 4-9-2018 CGST – Circulars / Ordes
GST
Circular No. 61/35/2018-GST
CBEC-20/13/01/2018-GST
Government of India
Department of Revenue
Central Board of Indirect Taxes and Customs
GST Policy Wing
New Delhi, Dated the 4th September, 2018
To,
The Principal Chief Commissioners / Chief Commissioners / Principal Commissioners / Commissioners of Central Tax (All)
The Principal Directors General / Directors General (All)
Madam/Sir,
Subject: E-way bill in case of storing of goods in godown of transporter – regarding
Various representations have been received on the matter pertaining to the textile sector and problems being faced by weavers & artisans regarding storage of their goods in the warehouse of the transporter. It has been stated that textile traders use transporters' godown for storage of their goods due to their weak financial conditions. The transporters providing such ware

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m the supplier's place of business to the recipient taxpayer's place of business. Therefore, the goods in movement including when they are stored in the transporter's godown (even if the godown is located in the recipient taxpayer's city/town) prior to delivery shall always be accompanied by a valid e-way bill.
4. Further, section 2(85) of the CGST Act defines the “place of business” to include “a place from where the business is ordinarily carried out, and includes a warehouse, a godown or any other place where a taxable person stores his goods, supplies or receives goods or services or both”. An additional place of business is the place of business from where taxpayer carries out business related activities within the State, in addition to the principal place of business.
5. Thus, in case the consignee/ recipient taxpayer stores his goods in the godown of the transporter, then the transporter's godown has to be declared as an additional place of business by the recipient taxpay

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all be required, as per the extant State-specific e-way bill rules.
7. Further, the obligation of the transporter to maintain accounts and records as specified in section 35 of the CGST Act read with rule 58 of the CGST Rules shall continue as a ware-housekeeper. Furthermore, the recipient taxpayer shall also maintain accounts and records as required under rules 56 and 57 of the CGST Rules. Furthermore, as per rule 56 (7) of the CGST Rules, books of accounts in relation to goods stored at the transporter's godown (i.e., the recipient taxpayer's additional place of business) by the recipient taxpayer may be maintained by him at his principal place of business. It may be noted that the facility of declaring additional place of business by the recipient taxpayer is in no way putting any additional compliance requirement on the transporters.
8. It is requested that suitable trade notices may be issued to publicize the contents of this Circular.
9. Difficulty, if any, in implementation o

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Processing of refund applications filed by Canteen Stores Department (CSD)- regarding
60/34/2018 Dated:- 4-9-2018 CGST – Circulars / Ordes
GST
Circular No. 60/34/2018-GST
CBEC-20/16/10/2018-GST (CBEC)
Government of India
Ministry of Finance
Department of Revenue
Central Board of Indirect Taxes and Customs
GST Policy Wing
New Delhi, Dated the 4th September, 2018
To,
The Principal Chief Commissioners/Chief Commissioners/Principal Commissioners/ Commissioners of Central Tax (All)
The Principal Directors General/ Directors General (All)
The Principal Chief Controller of Accounts, CBIC
Madam / Sir,
Subject: Processing of refund applications filed by Canteen Stores Department (CSD)- regarding
Vide notifications No. 6/2017-Central Tax (Rate), No. 6/2017-Integrated Tax (Rate) and No. 6/2017-Union territory Tax (Rate), all dated 28th June 2017, the Central Government has specified the Canteen Stores Department (CSD for short), under the Ministry of Defence, as a person wh

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SD is not for the accumulated input tax credit but refund based on the invoices of the inward supplies of goods received by them.
3.2 Manual filing of claims on a quarterly basis: In terms of rule 95 of the Central Goods and Services Tax Rules, 2017 (hereinafter referred to as the 'CGST Rules'), the CSD are required to apply for refund on a quarterly basis. Till the time the online utility for filing the refund claim is made available on the common portal, the CSD shall apply for refund by filing an application in FORM GST RFD-10A (Annexure-A to this Circular) manually to the jurisdictional tax office. The said form shall be accompanied with the following documents:
(i) An undertaking stating that the goods on which refund is being claimed have been received by the CSD;
(ii) A declaration stating that no refund has been claimed earlier against the invoices on which the refund is being claimed;
(iii) Copies of the valid return filed in FORM GSTR-3B by the CSD for the period covered

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mon portal to ascertain whether the return in FORM GSTR- 3B has been filed by the CSD. The proper officer may scrutinize the details contained in FORM RFD-10A, FORM GSTR-3B and FORM GSTR-2A. The proper officer may rely upon FORM GSTR-2A as an evidence of the accountal of the supply made by the corresponding suppliers to the CSD in relation to which the refund has been claimed by the CSD.
4.3 The proper officer should ensure that the amount of refund sanctioned is 50 % of the Central tax, State tax, Union territory tax and integrated tax paid on the supplies received by CSD. The proper officer shall issue the refund sanction/rejection order manually in FORM GST RFD-06 along with the payment advice manually in FORM GST RFD-05 for each tax head separately. The amount of sanctioned refund in respect of central tax/integrated tax along with the bank account details of the CSD shall be manually submitted in the PFMS system by the jurisdictional Division's DDO and a signed copy of the sancti

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ifficulty, if any, in implementation of this Circular may please be brought to the notice of the Board. Hindi version would follow.
(Upender Gupta)
Commissioner (GST)
[Encl: Annexure-A]
Annexure A
FORM GST RFD-10A
(See Rule 95)
Application for refund by Canteen Stores Department (CSD)
1. GSTIN :
2. Name :
3. Address :
4. Tax Period (Quarter) : From
To
5. Amount of Refund Claim :
6. Details of inward supplies of goods received:
GSTIN of Supplier
Invoice/Debit Note/Credit Note details
Rate
Taxable Value
Amount of tax
No.
Date
Value
Integrated Tax
Central Tax
State/ Union territory Tax
1
2
3
4
5
6
7
8
9
6A. Invoices received
To
6B. Debit/Credit Note received
a1
refund applied for:
Central Tax
State /Union territory Tax
Integrated Tax
Total
8. Details of Bank Account:
a. Bank Account Number
b. Bank Account Type
c. Name of the Bank
d. Name of the Account Holder
e. Address of Bank Branch
f. IFSC
g. MICR
9. Attachment of the following docu

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M/s. Caress Industries Versus Commissioner of GST & Central Excise, Salem
Central Excise
2018 (9) TMI 248 – CESTAT CHENNAI – TMI
CESTAT CHENNAI – AT
Dated:- 4-9-2018
Appeal No. E/41190/2014 – Final Order No. 42339 / 2018
Central Excise
Hon'ble Ms. Sulekha Beevi C.S., Member (Judicial) And Hon'ble Shri Madhu Mohan Damodhar, Member (Technical)
Ms. L. Maithili, Advocate for the Appellant
Shri B. Balamurugan, AC (AR) for the Respondent
ORDER
Per Bench
The facts of the case are that the appellants are manufacturers of “Micronutrients” and availing SSI exemption. Pursuant to audit, it emerged that the appellants were also engaged in manufacture of Chelated Zinc as 12%, Chelated Iron as 12% Fe, mixture of Chelated substance. It emerged that appellants are manufacturing the said products under nil rate of duty vide Notification No. 4/2006-CE dated 1.3.2006 classifying the same under Central Excise Tariff Heading 3105 as “other fertilizers”. Department took a view that

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ts and Board Circulars. The Tribunal in the case of Hindustan Agro Insecticides – 2017-TIOL-3145-CESTAT-HYD, after taking into account the competing Tariff Entries, Chapter Headings, HSN notes, various Board circulars and Apex Court ruling in the Ranadey Micronutrients case, has held that micronutrient mixtures (like those manufactured by the Appellant) are classifiable under Chapter Sub-heading 3105.90 as Other fertilizers and not as Plant Growth Regulators. The Appellant craves leave to treat paras 8-8.8 and 9 of the said decision of the Tribunal as a part and parcel of these submissions. These findings have been adopted and followed in more recent decisions in the case of San Industries Vs. CCE – 2018-TIOL-570-CESTAT-HYD.
2.2 The classification claimed by the Appellant satisfies the requirement of Note 6 of Chapter 31 i.e.
a) The product must be of a kind used as fertilizers;
b) It must contain any one of the fertilizing elements viz. Nitrogen, phosphorous or potassium and
c)

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z. Gibberellins which are plant hormones that promotes overall growth of plant, apart from being baseless also goes beyond the department‟s case in the show cause notice and in the Order-in-Original. There is no material on record to suggest that the subject goods contain any Gibberellins. In fact, there is no dispute that the subject goods are micronutrient mixtures containing Nitrogen. This fact stands established by the Test results of the technical analysis by the Chemical Examiner, Customs House Laboratory, Chennai relied upon by the department. 2.5 The classification of the subject goods under Chapter heading 3808 stands excluded by the operation of Note 1 to Chapter 38, which stipulates that the said Chapter heading will apply only to separate chemically defined compounds, which admittedly, the subject goods are not. Micronutrients manufactured by the Appellant by using chelating agents are mixtures and not chemically defined compounds.
2.6 Even otherwise the demand is su

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rowth Regulators‟; that further the content of nitrogen is of very low percentage which is not sufficient to be called fertilizing element and that nitrogen is used only as chelating agent; hence goods are nothing but “Plant Growth Regulators‟ requiring classification under CETA 3808 and not as “other fertilizers‟ under 3105.
4. Heard both sides and have gone through the records.
5. The issue of classification of “micronutrients‟ has been in confusion for a number of years. The CBEC have revised their stance in respect of the classification in successive circulars. No doubt, the Commissioner (Appeals) has relied upon the judgment of the  Hon'ble Supreme Court in the case of Karnataka Agro Chemicals – 2008-TIOL-117-SC-CX. However, we notice that the  Hon'ble Supreme Court in that case has only remanded the issue back to the adjudicating authority to examine whether addition of 0.31% of Nitrogen would convert “Plant Growth Regulators‟ into nutrie

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en in chelated zinc has been found at 1.8%, in MNM chelated as 2.5% and in chelated iron it is 3.3% with regard to test report dated 1.4.2013. One of the main ground for the view taken in the impugned order is that though nitrogen is present in the impugned goods, it is present in very low percentage which is not sufficient to be called as essential constituent of the fertilizer. We, however, find that the ld. Advocate is correct in her assertion that there being no minimum prescribed percentage of Nitrogen etc. prescribed in Note 6 to Chapter 6 of the Central Excise Tariff Act, the requirements of that Note being classified as micronutrient in other fertilizers, CETA 31.05 are satisfied. We also, note that the Board‟s circular dated 6.4.2016 also does not specify any minimum percentages for such elements to be considered as “essential constituents”. Evidently, the essentiality of these elements is then to be decided by the “essential manner” that they act upon the soil or the “e

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have been changing their stance thereon over the years. In a Circular No. 79/79/94-CX, dated 21-11-1994, the Board modified earlier Circular No. 26/90-CX.3, dated 26-6-1990 (which had advised appropriate classification of “Micronutrients‟ under Heading No. 38.08 as “Plant Growth Regulator‟) and clarified that “Micronutrients listed under Sr. No. 1(F) of Schedule 1 part (A) of the Fertiliser (Control) Order, 1985 and their mixture (with or without N, P, K) as notified by the Central Government or a State Government would be appropriately classifiable under Heading No. 31.05 as “Other Fertilizers”.
8.2 Subsequent to the Supreme Court‟s judgment in the case of Ranadey Micronutrients [1996 (87) E.L.T. 19 (S.C.)], Board re-examined the matter and issued another Circular No. 392/25/98-CX, dated 19-5-1998. Referring to the HSN Explanatory Notes, Board advised therein as follows:
Fertilisers are materials added to soil and, sometimes to foliage to supply nutrients to sus

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er Heading 31.
8.3 In the cases before us, proceedings have been initiated by department referring to these circulars and alleging that Nitrogen is present in the impugned goods of the respondents in smaller quantity only, in the form of diamine and the goods will not function as nutrients since Nitrogen present does not function as a nitrogenous fertilizer as nitrogen is not released. Department also took the view that the impugned goods are one or more combination of micronutrients such as compound of zinc, boron, manganese, etc., which are required in smaller quantities to regulate plant growth to alter life process of the plant so as to accelerate growth yield and improve quality and hence the products are classifiable as plant growth regulators under Chapter 38.08 only. We find that the same arguments have been put forth by the department in the grounds of appeal.
8.4 For better understanding of various contending classifications, the CETA Heading Nos. 38.08 and 3105 are repro

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s, fungicides, herbicides and disinfectants, all of which are intended to “destroy pathogenic germs, insects, mosses and moulds, weeds, pests and achieve their results as given in the notes by nerve poisoning, stomach poisoning by asphyxiation or by odour etc.”. From the data on plant growth regulators submitted by the appellant, we find that at least in some parts of the world, they are regulated as pesticides. Discernibly, micronutrients which are admittedly for promoting only growth and health of plant cannot logically find a place in this heading.
8.6 It is interesting to note that C.B.E. & C. found it necessary to issue yet one more Circular No. 1022/10/2016-CX, dated 6-4-2016, on the very issue of classification of micronutrients, plant growth regulators, etc. In the first para itself, the circular acknowledges that the issue of classification of these items remain a disputed area in Central Excise. On the basis of opinion obtained from Indian Agricultural Research Institute (I

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overned by the present circulars.
8.7 As per the aforesaid C.B.E. & C. Circular dated 6-4-2016, plant growth regulators are defined as organic compounds other than nutrients that affect the physiological processes in plants, by hormonal action in promoting inhibiting or modifying growth and development. On the other hand, micronutrients, as explained in the very same circular, are essential nutrients, like iron, Manganese, Zinc, Copper, Boron etc., that are required in small quantities for the normal growth and development of plants. Micronutrients thus cannot modify inhibit retard the growth of plants like plant growth regulators, they only promote normal growth.
8.8 Applying the above findings, it clearly emerges that the impugned products definitely do contain more than one of the essential nutrients listed in the circular, they have also contain recognisable percentage of nitrogen. This being so, the disputed items are certainly micronutrients. In view of presence of nitrogen,

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Gajanan Road Lines Versus CCT Hyderabad GST
Central Excise
2018 (9) TMI 451 – CESTAT HYDERABAD – TMI
CESTAT HYDERABAD – AT
Dated:- 4-9-2018
Appeal No. E/31285/2017 – Final Order No. A/31083/2018
Central Excise
Hon'ble Mr. M. V. Ravindran, Member ( Judicial )
Shri Nagesh V. Rao, Consultant for the Appellant
Shri Dass Thavanam, Superintendent /AR for the Respondent
ORDER
[ Order Per : M. V. Ravindran ]
1. This appeal is directed against Orders-in-Appeal No. HYD-EXCUSMD- AP2-0011-17-18-CE and HYD-EXCUS-MD-AP2-0012-17-18-CE, dated 14.08.2017.
2. The relevant facts arise for consideration, after filtering out unnecessary details are the appellant herein is the transporter and he has various premises wherein he collects goods from various consignors and despatch the same to the consignees. The premises of the appellant was searched and found that there were eight truck loads of fans packed in cartons apart from the stocks, consignment notes were issued for the said

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cating authority after due process of law held that the goods are liable for confiscation and confirmed the demand of Rs. 17,11,090/- including Ed. Cess and Higher Education Cess and imposed a penalty on the manufacturers and other individuals plus imposed penalty of Rs. 10,00,000/- on the appellant herein. An appeal was filed before the first appellate authority resulted in upholding the Order-in-Original. The said impugned order is contested before the Tribunal.
3. Ld. Consultant, after giving an overall picture of the issue involved submits that imposition of penalty under rule 26 of Central Excise Rules 2002 is incorrect. It is his submission that transporter is not the manufacturer of the brands of fans found loaded in the truck and no investigation was done to find out the manufacturers of the said goods supposedly cleared without payment of duty. It is his further submission that unless the goods are manufactured, liability of duty and imposition of penalty under rule 26 will n

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004(170)ELT 574 (Tri.-Mum.)]
h) Nirmal Transporters vs. CCE, Pune-II [2014(312)ELT 803 (Tri.-Mum.)]
4. Ld. DR on the other hand submits that appellant was unable to produce any documents indicating that the goods were cleared on payment of appropriate duty and in the absence of any such documents, the penalty imposed by the adjudicating authority and upheld by the first appellate authority is correct and impugned order needs to be upheld.
5. On careful consideration of the submissions made, I find that there is no dispute as to the fact that fully manufactured fans packed in cartons were found in the godown premises of the appellant, consignment notes were issued for the consignments loaded in the trucks mentioning the name and the destination, appellant could not produce any invoice, way bills issued by the consignors or the manufacturers covering the material. Despite given an opportunity to produce the documents which would indicate that appropriate central excise duty has bee

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le to a penalty not exceeding the duty on such goods or two thousand rupees, whichever is higher:
Provided that …… (proviso inserted wef 01.03.2016 by notification No. 8/2016- CE(NT), hence inapplicable to instant case) (2) Any person, who issues
(i) an excise duty invoice…..'; or
(ii) any other document ……., shall be liable to a penalty not exceeding the amount of such benefit or five thousand rulees, whichever is higher.” [emphasis supplied]
6. It can be seen from the above reproduced provisions that the same would apply directly in the case in hand, as appellant is the person who acquired the possession of goods and were concerned with depositing or keeping the fans on which admittedly duty liability was not discharged. In my view, appellant has no case for praying for setting aside the penalties imposed under rule 26.
7. It is to be seen from the records that the duty liability on the entire stock which were seized and confiscated is only Rs. 17,11,090/- while

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Waving Late Fee For GSTR-3B, GSTR-4 & GSTR-6.
41/2018-State Tax Dated:- 4-9-2018 Gujarat SGST
GST – States
Gujarat SGST
Gujarat SGST
NOTIFICATION
FINANCE DEPARTMENT.
Sachivalaya, Gandhinagar.
Notification No. 41/2018-State Tax
Dated the 4th September, 2018.
No.(GHN-81)GST-2018/S.128(11)TH:- In exercise of the powers conferred by section 128 of the Gujarat Goods and Services Tax Act, 2017 (Guj.25 of 2017), the Government of Gujarat, on the recommendations of the Council, hereb

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The Gujarat Goods and Services Tax (Eighth Amendment) Rules, 2018.
39/2018-State Tax Dated:- 4-9-2018 Gujarat SGST
GST – States
Gujarat SGST
Gujarat SGST
NOTIFICATION
FINANCE DEPARTMENT.
Sachivalaya, Gandhinagar.
Dated the 4th September, 2018.
Notification No. 39/2018-State Tax
No.(GHN-80)/GSTR-2018(27)TH:- In exercise of the powers conferred by section 164 of the Gujarat Goods and Services Tax Act, 2017 (Guj.25 of 2017), the Government of Gujarat hereby makes the following rules further to amend the Gujarat Goods and Services Tax Rules, 2017, namely:-
(1) These rules may be called the Gujarat Goods and Services Tax (Eighth Amendment) Rules, 2018.
(2) Save as otherwise provided in these rules, they shall come into force on the date of their publication in the Official Gazette.
2. In the Gujarat Goods and Services Tax Rules, 2017, (hereinafter referred to as the said rules), in rule 22, in sub-rule (4), the following proviso shall be inserted, namely:-
“Provided

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r lots” shall be inserted.
5. In the said rules, in rule 89, in sub-rule (4), for clause (E), the following clause shall be substituted, namely:-
'(E) “Adjusted Total Turnover” means the sum total of the value of-
(a) the turnover in a State or a Union territory, as defined under clause (112) of section 2, excluding the turnover of services; and
(b) the turnover of zero-rated supply of services determined in terms of clause (D) above and non-zero-rated supply of services, excluding-
(i) the value of exempt supplies other than zero-rated supplies; and
(ii) the turnover of supplies in respect of which refund is claimed under sub-rule (4A) or sub-rule (4B) or both, if any, during the relevant period.'.
6. In the said rules, with effect from the 23rd October, 2017, in rule 96, for sub-rule (10), the following sub-rule shall be substituted, namely:-
“(10) The persons claiming refund of integrated tax paid on exports of goods or services should not have –
(a) received supplies

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e 13th October, 2017.”.
7. In the said rules, in rule 138A, in sub-rule (1), after the proviso, the following proviso shall be inserted, namely:-
“Provided further that in case of imported goods, the person in charge of a conveyance shall also carry a copy of the bill of entry filed by the importer of such goods and shall indicate the number and date of the bill of entry in Part A of FORM GST EWB-01.”.
8. In the said rules, for FORM GST REG-20, the following FORM shall be substituted, namely:-
“FORM GST REG-20
[See rule 22(4)]
Reference No. –
Date –
To
Name
Address
GSTIN/UIN
Show Cause Notice No.
Date-
Order for dropping the proceedings for cancellation of registration
This has reference to your reply filed vide ARN – dated in response to the show cause notice referred to above. Upon consideration of your reply and/or submissions made during hearing, the proceedings initiated for cancellation of registration stands vacated for the following reasons:
<>
Or
The a

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obworker
Challan No.
Challan date
Description of goods
UQC
Quantity
Taxable value
Type of goods (Inputs/capital goods)
Rate of tax (%)
Central tax
State/UT tax
Integrated tax
Cess
1
2
3
4
5
6
7
8
9
10
11
12
5. Details of inputs/capital goods received back from job worker or sent out from business place of job work
(A) Details of inputs/ capital goods received back from job worker to whom such goods were sent for job work; and losses and wastes:
GSTIN/State of job worker if unregistered
Challan No. issued by job worker under which goods have been received back
Date of challan issued by job-worker under which goods have been received back
Description of goods
UQC
Quantity
Original challan No. under which goods have been sent for job work
Original challan date under which goods have been sent for job work
Nature of job work done by job worker
Losses & wastes
UQC
Quantity
1
2*
3*
4
5
6
7*
8*
9
10
11
(B) Details of inputs / capital goods rec

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al challan no. under which goods have been sent for job work
Original challan date under which goods have been sent for job work
Nature of job work done by job worker
Losses & wastes
UQC
Quantity
1
2
3
4
5
6
7*
8*
9
10
11
Instructions:
1. Multiple entry of items for single challan may be filled.
2. Columns (2) & (3) in Table (A) and Table (B) are mandatory in cases where fresh challan are required to be issued by the job worker. Otherwise, columns (2) & (3) in Table (A) and Table (B) are optional.
3. Columns (7) & (8) in Table (A), Table (B) and Table (C) may not be filled where one-to-one correspondence between goods sent for job work and goods received back after job work is not possible.
6. Verification
I hereby solemnly affirm and declare that the information given hereinabove is true and correct to the best of my knowledge and belief and nothing has been concealed therefrom.
Signature
Name of Authorised Signatory ………
Designation /Statu

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ard supplies 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
5
Details of Outward supplies on which tax is not payable as declared in returns filed during the financial year
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
Suppli

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ered 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)
7
Details of ITC Reversed and Ineligible ITC as declared in returns filed during the financial year
A
As per Rule 37
B
As per Rule 39
C
As per Rule 42
D
As per Rule 43
E
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

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through ITC
Central Tax
State Tax/UT Tax
Integrated Tax
Cess
1
2
3
4
5
6
7
Integrated Tax
Central Tax
State/UT Tax
Cess
Interest
Late fee
Penalty
Other
Pt. V
Particulars of the transactions for the previous FY declared in returns of April to September of current FY or upto date of filing of annual return of previous FY whichever is earlier
Description
Taxable Value
Central Tax
State Tax/UT Tax
Integrated Tax
Cess
1
2
3
4
5
6
10
Supplies / tax declared through Amendments (+) (net of debit notes)
11
Supplies / tax reduced through Amendments (-) (net of credit notes)
12
Reversal of ITC availed during previous financial year
13
ITC availed for the previous financial year
14
Differential tax paid on account of declaration in 10 & 11 above
Description
Payable
Paid
1
2
3
Integrated Tax
Central Tax
State/UT Tax
Cess
Interest
Pt. VI
Other Information
15
Particulars of Demands and Refunds
Details
Central Tax
State Tax/UT Tax
Integ

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8
9
19
Late fee payable and paid
Description
Payable
Paid
1
2
3
A
Central Tax
B
State Tax
Verification:
I hereby solemnly affirm and declare that the information given herein above is true and correct to the best of my knowledge and belief and nothing has been concealed there from and in case of any reduction in output tax liability the benefit thereof has been/will be passed on to the recipient of supply.
Signature
Name of Authorised Signatory
Designation / Status
Place
Date
Instructions: –
1. Terms used:
a. GSTIN: Goods and Services Tax Identification Number
b. UQC: Unit Quantity Code
c. HSN: Harmonized System of Nomenclature Code
2. The details for the period between July 2017 to March 2018 are to be provided in this return.
3. Part II consists of the details of all outward supplies & advances received during the financial year for which the annual return is filed. The details filled in Part II is a consolidation of all the supplies declared by the taxpa

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gregate value of exports (except supplies to SEZs) on which tax has been paid shall be declared here. Table 6A of FORM GSTR-1 may be used for filling up these details.
4D
Aggregate value of supplies to SEZs on which tax has been paid shall be declared here. Table 6B of GSTR-1 may be used for filling up these details.
4E
Aggregate value of supplies in the nature of deemed exports on which tax has been paid shall be declared here. Table 6C of FORM GSTR-1 may be used for filling up these details.
4F
Details of all unadjusted advances i.e. advance has been received and tax has been paid but invoice has not been issued in the current year shall be declared here. Table 11A of FORM GSTR-1 may be used for filling up these details.
4G
Aggregate value of all inward supplies (including advances and net of credit and debit notes) on which tax is to be paid by the recipient (i.e.by the person filing the annual return) on reverse charge basis. This shall include supplies received from regis

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cept supplies to SEZs) on which tax has not been paid shall be declared here. Table 6A of FORM GSTR-1 may be used for filling up these details.
5B
Aggregate value of supplies to SEZs on which tax has not been paid shall be declared here. Table 6B of GSTR-1 may be used for filling up these details.
5C
Aggregate value of supplies made to registered persons on which tax is payable by the recipient on reverse charge basis. Details of debit and credit notes are to be mentioned separately. Table 4B of FORM GSTR-1 may be used for filling up these details.
5D,5E and 5F
Aggregate value of exempted, Nil Rated and Non-GST supplies shall be declared here. Table 8 of FORM GSTR-1 may be used for filling up these details.
5H
Aggregate value of credit notes issued in respect of supplies declared in 5A,5B,5C, 5D, 5E and 5F shall be declared here. Table 9B of FORM GSTR-1 may be used for filling up these details.
5I
Aggregate value of debit notes issued in respect of supplies declared in 5A,5B,

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Table No.
Instructions
6A
Total input tax credit availed in Table 4A of FORM GSTR-3B for the taxpayer would be auto-populated here.
6B
Aggregate value of input tax credit availed on all inward supplies except those on which tax is payable on reverse charge basis but includes supply of services received from SEZs shall be declared here. It may be noted that the total ITC availed is to be classified as ITC on inputs, capital goods and input services. Table 4(A)(5) of FORM GSTR-3B may be used for filling up these details. This shall not include ITC which was availed, reversed and then reclaimed in the ITC ledger. This is to be declared separately under 6(H) below.
6C
Aggregate value of input tax credit availed on all inward supplies received from unregistered persons (other than import of services) on which tax is payable on reverse charge basis shall be declared here. It may be noted that the total ITC availed is to be classified as ITC on inputs, capital goods and input serv

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ervice distributor shall be declared here. Table 4(A)(4) of FORM GSTR-3B may be used for filling up these details.
6H
Aggregate value of input tax credit availed, reversed and reclaimed under the provisions of the Act shall be declared here.
6J
The difference between the total amount of input tax credit availed through FORM GSTR-3B and input tax credit declared in row B to H shall be declared here. Ideally, this amount should be zero.
6K
Details of transition credit received in the electronic credit ledger on filing of FORM GST TRAN-I including revision of TRAN-I (whether upwards or downwards), if any shall be declared here.
6L
Details of transition credit received in the electronic credit ledger after filing of FORM GST TRAN-II shall be declared here.
6M
Details of ITC availed but not covered in any of heads specified under 6B to 6L above shall be declared here. Details of ITC availed through FORM ITC 01 and FORM ITC-02 in the financial year shall be declared here.
7A, 7B

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d in Table 6B and 6Hshall be auto-populated here.
8C
Aggregate value of input tax credit availed on all inward supplies (except those on which tax is payable on reverse charge basis but includes supply of services received from SEZs) received during July 2017 to March 2018 but credit on which was availed between April to September 2018 shall be declared here. Table 4(A)(5) of FORM GSTR-3B may be used for filling up these details.
8E & 8F
Aggregate value of the input tax credit which was available in FORM GSTR2A(table 3 & 5 only) but not availed in any of the FORM GSTR-3B returns shall be declared here. The credit shall be classified as credit which was available and not availed or the credit was not availed as the same was ineligible. The sum total of both the rows should be equal to difference in 8D.
8G
Aggregate value of IGST paid at the time of imports (including imports from SEZs) during the financial year shall be declared here.
8H
The input tax credit as declared in Table

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t financial year or date of filing of Annual Return for the previous
financial year, whichever is earlier shall be declared here.
12
Aggregate value of reversal of ITC which was availed in the previous financial year but reversed in returns filed for the months of April to September of the current financial year or date of filing of Annual Return for previous financial year , whichever is earlier shall be declared here. Table 4(B) of FORM GSTR-3B may be used for filling up these details.
13
Details of ITC for goods or services received in the previous financial year but ITC for the same was availed in returns filed for the months of April to September of the current financial year or date of filing of Annual Return for the previous financial year whichever is earlier shall be declared here. Table 4(A) of FORM GSTR-3B may be used for filling up these details.
7. Part VI consists of details of other information. The instructions to fill Part VI are as follows:
Table No.
Instruct

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egate value of supplies received from composition taxpayers shall be declared here. Table 5 of FORM GSTR-3B may be used for filling up these details.
16B
Aggregate value of all deemed supplies from the principal to the job-worker in terms of sub-section (3) and sub-section (4) of Section 143 of the GGST Act shall be declared here.
16C
Aggregate value of all deemed supplies for goods which were sent on approval basis but were not returned to the principal supplier within one eighty days of such supply shall be declared here.
17 & 18
Summary of supplies effected and received against a particular HSN code to be reported only in this table. It will be optional for taxpayers having annual turnover upto₹ 1.50 Cr. It will be mandatory to report HSN code at two digits level for taxpayers having annual turnover in the preceding year above ₹ 1.50 Cr but upto₹ 5.00 Cr and at four digits' level for taxpayers having annual turnover above ₹ 5.00 Cr. UQC details to be

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(net of debit/credit notes) declared in returns filed during the financial year
Description
Taxable Value
Central Tax
State Tax/UT Tax
Integrated Tax
Cess
1
2
3
4
5
6
A
Inward supplies liable to reverse charge received from registered persons
B
Inward supplies liable to reverse charge received from unregistered persons
C
Import of services
D
Net Tax Payable on (A), (B) and (C) above
8
Details of other inward supplies as declared in returns filed during the financial year
A
Inward supplies from registered persons (other than 7A above)
B
Import of Goods
Pt.III
Details of tax paid as declared in returns filed during the financial year
9
Description
Total tax payable
Paid
1
2
3
Integrated Tax
Central Tax
State/UT Tax
Cess
Interest
Late fee
Penalty
Pt.IV
Particulars of the transactions for the previous FY declared in returns of April to September of current FY or upto date of filing of annual return of previous FY whichever is earlier
Descript

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otal demands pending out of E above
16
Details of credit reversed or availed
Description
Central Tax
State Tax/UT Tax
Integrated Tax
Cess
1
2
3
4
5
A
Credit reversed on opting in the composition scheme (-)
B
Credit availed on opting out of the composition scheme (+)
17
Late fee payable and paid
Description
Payable
Paid
1
2
3
A
Central Tax
B
State Tax
Verification:
I hereby solemnly affirm and declare that the information given herein above is true and correct to the best of my knowledge and belief and nothing has been concealed there from and in case of any reduction in output tax liability the benefit thereof has been/will be passed on to the recipient of supply.
Signature
Name of Authorised Signatory
Designation / Status
Place
Date
Instructions: –
1. The details for the period between July 2017 to March 2018 shall be provided in this return.
2. Part I consists of basic details of taxpayer. The instructions to fill Part I are as follows :
Tabl

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h tax is payable on reverse charge basis shall be declared here. Table 4B, Table 5 and Table 8A of FORM GSTR-4 may be used for filling up these details.
7B
Aggregate value of all inward supplies received from unregistered persons (other than import of services) on which tax is payable on reverse charge basis shall be declared here. Table 4C, Table 5 and Table 8A of FORM GSTR-4 may be used for filling up these details.
7C
Aggregate value of all services imported during the financial year shall be declared here. Table 4D and Table 5 of FORM GSTR-4 may be used for filling up these details.
8A
Aggregate value of all inward supplies received from registered persons on which tax is payable by the supplier shall be declared here. Table 4A and Table 5 of FORM GSTR-4 may be used for filling up these details.
8B
Aggregate value of all goods imported during the financial year shall be declared here.
4. Part IV consists of the details of amendments made for the supplies of the previo

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nds claimed, sanctioned, rejected and pending for processing shall be declared here. Refund claimed will be the aggregate value of all the refund claims filed in the financial year and will include refunds which have been sanctioned, rejected or are pending for processing. Refund sanctioned means the aggregate value of all refund sanction orders. Refund pending will be the aggregate amount in all refund application for which acknowledgement has been received and will exclude provisional refunds received. These will not include details of non-GST refund claims.
15E, 15F and 15G
Aggregate value of demands of taxes for which an order confirming the demand has been issued by the adjudicating authority has been issued shall be declared here. Aggregate value of taxes paid out of the total value of confirmed demand in 15E above shall be declared here. Aggregate value of demands pending recovery out of 15E above shall be declared here.
16A
Aggregate value of all credit reversed when a pers

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M/s. Jaypee Bela Plant Versus Commissioner of GST, CC & CE, Jabalpur
Central Excise
2018 (9) TMI 906 – CESTAT NEW DELHI – 2019 (369) E.L.T. 766 (Tri. – Del.)
CESTAT NEW DELHI – AT
Dated:- 4-9-2018
Excise Appeal No. 50635 of 2018 – Final Order No. 52950/2018
Central Excise
Mr. C L Mahar, Member (Technical) And Ms. Rachna Gupta, Member (Judicial)
For the Appellants : Shri Rahul Tangri, CA
For the Respondent : Ms Tamana Alam, AR
ORDER
PER: C L MAHAR:
Appellant herein are engaged in manufacture of clinker falling under Chapter 25 of the First Schedule of the Central Excise Act. Period of dispute is from July, 2013 to October, 2013 when the appellants are observed to have availed Cenvat Credit on the basis of supplementary invoices issued by M/s. SECL. The Department has denied the admissibility of said credit to the appellants in terms of Rule 9 (1) (b) of Cenvat Credit Rules. Accordingly, a show cause notice dated 17.6.2015 was issued to the appellant for the r

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ra, has submitted that merely pendency of adjudication against M/s. South Eastern Coal Fields before the Hon'ble Apex Court, cannot be made the criteria for the appeal to be allowed. It is impressed upon that as far as the present appeal is concerned, there is sufficient evidence on record to hold that the appellant had notice of M/s. SECL to have been issued with a show cause notice for demand of differential duty on valuation. It is also impressed upon that as per Rule 9 (1) (b) of Cenvat Credit Rules, it was the duty of appellant only, to ascertain the absence of any misconduct or suppression of fact. The issuance of show cause notice to M/s. SECL much prior the appellants availed the Cenvat Credit on supplementary invoices issued by M/s. SECL is sufficient to hold that the appellant have failed to ascertain the same. As such, the Cenvat Credit cannot be made available to them in view of Rule 9 (1) (b) of Cenvat Credit Rules. Impressing upon the present appeal to stand on different

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by the Coal Companies which are the undertakings of the Government of India, there can be no presumption, unless rebutted, of any alleged suppression or collusion.
6. The observations from the Tribunal decision in the case of Birla Corporation Ltd. Vs. CGST, Jabalpur, Final Order No. 52486/2018 dated 3.7.2018 and another in Ultratech Cement Ltd. Vs. CCE, Raipur Final Order No. 52611/2018 dated 23.7.2018 are reproduced below:-
“7. Having considered the rival contentions of both the sides, we take notice that this Tribunal in connected matter of South Eastern Coalfields Ltd. in Appeal No.52023- 52026/2014-DB dated 3.4.2017 vide Final Order No.52723- 52726/2017 dated 3.4.2017, taking notice of pendency of similar matter before the Hon'ble Supreme Court in the case of South Eastern Coal Fields Ltd. and ors. and also other cases, referred to in the above case, disposed of the appeal of the South Eastern Coal Fields Ltd., granting liberty to them to come again after having final verdict f

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Seeks to extend the time limit for making the declaration in FORM GST ITC-01 for specified classes of taxpayers
CT/LEG/GST-NT/12/17/752 Dated:- 4-9-2018 Nagaland SGST
GST – States
Nagaland SGST
Nagaland SGST
GOVERNMENT OF NAGALAND
OFFICE OF THE COMMISSIONER OF STATE TAXES
NAGALAND: DIMAPUR
Dated Dimapur, the 4th September, 2018
NOTIFICATION- 15/2018
In pursuance of section 168 of the Nagaland Goods and Services Tax Act, 2017 (4 of 2017) and clause (b) of sub-rule (1) of rule

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Seeks to extend the time limit for making the declaration in FORM GST ITC-04
CT/LEG/GST-NT/12/17/751 Dated:- 4-9-2018 Nagaland SGST
GST – States
Nagaland SGST
Nagaland SGST
GOVERNMENT OF NAGALAND
OFFICE OF THE COMMISSIONER OF STATE TAXES
NAGALAND: DIMAPUR
Dated Dimapur, the 4th September, 2018
NOTIFICATION- 14/2018
In pursuance of section 168 of the Nagaland Goods and Services Tax Act, 2017 (4 of 2017) and sub-rule (3) of rule 45 of the Nagaland Goods and Services Tax Rules,

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