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Goods and Services Tax – GST council approves Simplified GST Return – TMI Updates – Highlights

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Goods and Services Tax – GST rate on Services – GST Council decision – TMI Updates – Highlights

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Goods and Services Tax – GST – Dated:- 21-7-2018 – The GST Council in its 28th meeting held here today under the Chairmanship of Shri Piyush Goyal , Union Minister for Railways , Coal , Finance & Corporate Affairs took following decisions relating to exemptions / changes in GST rates / ITC eligibility criteria, rationalization of rates / exemptions and clarification on levy of GST on services. The decisions of the GST Council enclosed as annexure has been presented in simple language for ease of understanding which would be given effect to through Gazette notifications/ circulars which shall have force of law. It would be noted that multiple reliefs from GST taxation have been provided to following categories of services – (i) Agriculture, farming and food processing industry, (ii) Education, training and skill development, (iii) Pension, social security and old age support. Hotel industry has been given major relief by providing that the rate of tax on accommodation service shall

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ty distribution network upto the tube well of the farmer/ agriculturalist for agricultural use. 4. Exempt services provided by FSSAI to food business operators. Education/ Training/ Skill Development 5. Reduce rate of GST from 18% to 5% on supply only of e-books for which print version exist. Social Security/ Pension Security/ Senior Citizens 6. Exempt services provided by Coal Mines Provident Fund Organisation to the PF subscribers from the applicability of GST on the lines of EPFO. 7. Exempt supply of services by an old age home run by State / Central Government or by a body registered under 12AA of Income Tax Act) to its residents (aged 60 years or more) against consideration upto Rupees Twenty Five Thousand per month per member provided consideration is inclusive of charges for boarding, lodging and maintenance. 8. Exempt GST on the administrative fee collected by National Pension System Trust. 9. Exempt services provided by an unincorporated body or a non-profit entity registered

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Missions/ UN & other International Organizations based on reciprocity. 14. Exempt services supplied by an establishment of a person in India to any establishment of that person outside India, which are treated as establishments of distinct persons in accordance with Explanation I in section 8 of the IGST Act provided the place of supply is outside the taxable territory of India in accordance with section 13 of IGST Act 15. Prescribe GST rate slabs on accommodation service based on transaction value instead of declared tariff which is likely to provide major relief to the hotel industry. 16. Prescribe GST rate of 12% with full ITC under forward charge for composite supply of multimodal transportation. 17. Rationalize the notification entry prescribing reduced GST rate on composite supply of works contract received by the Government or a local authority in the course of their sovereign functions. 18. Rationalize entry relating to composite supply of food and drinks in restaurant, me

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Goods and Services Tax – GST – Dated:- 21-7-2018 – The GST Council in its 28th meeting held here today under the Chairmanship of Shri Piyush Goyal , Union Minister for Railways , Coal , Finance & Corporate Affairs has approved the new return formats and associated changes in law. It may be recalled that in the 27thmeeting held on 4thof May, 2018 the Council had approved the basic principles of GST return design and directed the law committee to finalize the return formats and changes in law. The formats and business process approved today were in line with the basic principles with one major change i.e the option of filing quarterly return with monthly payment of tax in a simplified return format by the small tax payers. All taxpayers

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would be shown and would be required to fill in the return would depend on his profile. NIL return filers (no purchase and no sale) shall be given facility to file return by sending SMS. The Council approved quarterly filing of return for the small taxpayers having turnover below ₹ 5 Cr as an optional facility. Quarterly return shall be similar to main return with monthly payment facility but for two kinds of registered persons – small traders making only B2C supply or making B2B + B2C supply. For such taxpayers, simplified returns have been designed called Sahaj and Sugam. In these returns details of information required to be filled is lesser than that in the regular return. The new return design provides facility for amendment of

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Finance Minister Piyush Goyal addresses media after 28th GST council meet – Goods and Services Tax – GST – Dated:- 21-7-2018 News – Press release

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Goods and Services Tax – Finance Minister Piyush Goyal addresses media after 28th GST council meet – TMI Updates – Highlights

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Goods and Services Tax – Recommendations on opening of migration window for tax payers till 31st August, 2018 – TMI Updates – Highlights

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News – Recommendations made during the 28thmeeting of the GST Council held in New Delhi on 21st 2018 – TMI Updates – Highlights

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Goods and Services Tax – GST – Dated:- 21-7-2018 – Recommendations made during the 28th meeting of the GST Council held in New Delhi on 21st 2018 Amendments to the CGST Act, 2017, IGST Act, 2017, UTGST Act 2017, and GST (Compensation to States) Act, 2017 The GST Council in its 28thmeeting held here today has recommended certain amendments in the CGST Act, IGST Act, UTGST Act and the GST (Compensation to States) Act. 2. The major recommendations are as detailed below: Upper limit of turnover for opting for composition scheme to be raised from ₹ 1 crore to ₹ 1.5 crore. Present limit of turnover can now be raised on the recommendations of the Council. Composition dealers to be allowed to supply services (other than r

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registration is required for only those e-commerce operators who are required to collect tax at source. Registration to remain temporarily suspended while cancellation of registration is under process, so that the taxpayer is relieved of continued compliance under the law. The following transactions to be treated as no supply (no tax payable) under Schedule III: Supply of goods from a place in the non-taxable territory to another place in the non-taxable territory without such goods enteringinto India; Supply of warehoused goods to any person before clearance for home consumption; and Supply of goods in case of high sea sales. Scope of input tax credit is being widened, and it would now be made available in respect of the following: Most o

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to pay interest is being done away with. Registered persons may issue consolidated credit/debit notes in respect of multiple invoices issued in a Financial Year. Amount of pre-deposit payable for filing of appeal before the Appellate Authority and the Appellate Tribunal to be capped at ₹ 25 Crores and ₹ 50 Crores, respectively. Commissioner to be empowered to extend the time limit for return of inputs and capital sent on job work, upto a period of one year and two years, respectively. Supply of services to qualify as exports, even if payment is received in Indian Rupees, where permitted by the RBI. Place of supply in case of job work of any treatment or process done on goods temporarily imported into India and then exported wit

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Goods and Services Tax – GST – Dated:- 21-7-2018 – The GST Council in its 28th meeting held here today has approvedthe proposal to open the migration window for taxpayers, who received provisional IDs but could not complete the migration process. The taxpayers who filed Part A of FORM GST REG-26, but not Part B of the said FORM are requested to approach the jurisdictional Central Tax/State Tax nodal officerswith the necessary details on or before 31stAugust, 2018. The nodal officer would then f

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Goods and Services Tax – Nature of supply – sourcing (on a worldwide basis)) of goods from India – export or not – The services provided by Esprit India to its associate concern in Hong Kong EDCFE are

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Goods and Services Tax – Rates of GST – Unit container – goods in different weight and size packed in LDPE bags without mentioning the weight and one or two such LDPE bags further packed in HDPE hags

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Goods and Services Tax – The Brake Pads, i.e., friction material mounted on metal plate, manufactured by the applicant for motor vehicles of headings 8701 to 8705 (other than specified parts of tracto

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Goods and Services Tax – Classification of supply – Manufacturing food as take away only with no sitting facility, is a restaurant service or manufacturing of goods? – to be taxed as supply of services only. – TMI Updates – Highlights

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Goods and Services Tax – GST – By: – Dr. Sanjiv Agarwal – Dated:- 21-7-2018 – Scope of Liquidated Damages Liquidated damages is a common prevalent business terminology comprising of two words – liquidated and damages. This can be found in business agreements or contracts to protect the interests of the principal or the other party from any specified action arising out of performance or non-performance or breach of any conditions of the contract. Literally to liquidate implies the winding up of affairs of a business by ascertaining assets and liabilities, a plan to liquidate, process of liquidation. Damages refer to detrimental effects. Damages are a sum of money claimed or awarded in compensation for a loss or an enquiry. Liquidated damages are damages or a sum of money which is agreed upon in a contact to be paid to a party by another party in the event of breach of any term or condition of the contract. According to P. Ramanatha Aiyar s Advanced Law Lexicon (4th ed), liquidated dama

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re incapable of accurate measurement, or where the sum specified is not out of all proportion to any damages which could arise, the provision will be treated as liquidated damages. But where these facts do not exist the tendency of the Court is to treat the stipulation in the nature of a penalty. The essence of liquidated damages is a genuine pre-estimated damage and the estimate of penalty is a payment of money stipulated as in terrorem of the offending party and the question whether the sum stipulated is penalty or liquidated damages is a question of construction to be decided upon the terms of the surrounding circumstances in the context of which the contract had been made. Prahled Bhagirath Firm v. Badrilal Bhalooram, MLJ: QD (1956-1960) Vol. II CI026: 1959 MPLJ (Notes) 171. [Contract Act (9 of 1872), S.74]. Contracts often contain provisions for the payment of sums of money or the forfeiture of goods or other property in the event of the particular specified branches of the contra

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ied 'liquidated damages' but if the judge finds it to be a penalty, he will treat it as such. WILLIAM R. ANSON, Principles of the Law of Contract 470 (ARTHUR L. CORBIN ed., 3d Am. ed. 1919). The distinction between a penalty and genuine liquidated damages, as they are called, is not always easy to apply, but the Courts have made the task simpler by laying down certain guiding principles. In the first place, if the sum payable is so large as to be far in excess of the probable damage on breach, it is almost certainly a penalty. Secondly, if the same sum is expressed to be payable on anyone of a number of different breaches of varying importance, it is again probably a penalty, because it is extremely unlikely that the same damage would be caused by these varying breaches. Thirdly, where a sum is expressed to be payable on a certain date, and a further sum in the event of default being made, this latter sum is prima facie a penalty, because mere delay in payment is unlikely to ca

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each, or which the parties knew, when they made the contract, to be likely to result from the breach of it. Section 74 When a contract has been broken, if a sum is named in the contract as the amount to be paid in case of such breach, or if the contract contains any other stipulation by way of penalty, the party complaining of the breach is entitled, whether or not actual damage or loss is provided to have been caused thereby, to receive from the party who has broken the contract reasonable compensation not exceeding the amount so named, or as the case may be, the penalty stipulated for. Liquidated damages are nothing but monetary compensation for suffering arising out of breach of contract. Taxation under Service Tax regime In Service Tax regime, there was a declared service under section 66E(e) of the Finance Act, 1994 whereby an activity to the obligation to retrain from an act, or to tolerate an act or a situation or to do an act, was considered as a service and liable to levy of S

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ns – there is no provision of service and there exists unforeseen actions. Liquidated damages also are the outcome of these two situations. GST on Liquidated Damages Under the GST law, scope of supply is defined in section 7 and charging section levy and collection) is governed by section 9 of CGST Act 2017. Supply is defined as an inclusive definition which shall include: all forms of supply of goods or services or both such as sale, transfer, barter, exchange, licence, rental, lease or disposal made or agreed to be made for a consideration by a person in the course or furtherance of business; import of services for a consideration whether or not in the course or furtherance of business; the activities specified in Schedule I, made or agreed to be made without a consideration; and the activities to be treated as supply of goods or supply of services as referred to in Schedule II. It further provides that certain supplies shall be treated neither as supply of goods nor as supply of ser

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ed on the part of the contractor. Thus, the act of delayed supply has happened. The same was being tolerated by an additional levy in the nature of liquidated damages. The agreement had also provided that the payment by contractor or deduction by owner of any sums under the provision of this clause shall not relieve the contractor from his obligations to complete the works or from his other obligations under the contract. This provision just ensured that the obligations under the contract are fulfilled. The facts are much obvious that the empowerment to levy liquidated damages is for the reason that there had been a delay and the same would be tolerated, but for a price or damages. The income though presented in the form of a deduction from the payments to be made to the contractor was the income of the applicant and would be a supply of service by the applicant in terms of clause (e) of para 5 of Schedule II appended to the Central Goods and Services Tax Act, 2017. Based on the agreem

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as stipulated in section 13 and 14 the GST law. Section 13(1) provides that the liability to pay tax on services shall arise at the time of supply for which agreement and section 14 are relevant. Accordingly, liquidated damages is determined and imposed upon the contractor after in-depth study. In terms of the agreement, the clauses revealed that the levy of liquidated damages is not when the delay is occurring but the liability of payment of these liquidated damages by the Contractor will be established once the delay in successful completion of trial operation is established on the part of the Contractor. This would define the time of supply. In terms of Section 13(1) of Central Goods and Services Tax Act, 2017, liability to pay tax on services arose at time of supply. If contractor fails to achieve trial operation of unit within specified time period which fells under GST regime, then levy of liquidated damages would be attracted and this levy would attract GST levy. Section 14 of

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GST – States – 4-R/2017 – Dated:- 21-7-2018 – FINANCE SECRETARIAT NOTIFICATION (4-R/2017) No. FD 47 CSL 2017, Bengaluru, dated: 21/07/2018 In exercise of the powers conferred by section 164 of the Karnataka Goods and Services Tax Act, 2017 (Karnataka Act 27 of 2017), on the recommendation of GST Council the Government of Karnataka hereby makes the following rules further to amend the Karnataka Goods and Services Tax Rules, 2017, namely: RULES 1. Title and commencement.- (1) These rules may be called the Karnataka Goods and Services Tax (Eighth Amendment) Rules, 2018. (2) They shall be deemed to have come into force with effect from the 12th day of June, 2018. 2. Amendment of rule 129.- In the Karnataka Goods and Services Tax Rules, 2017 (h

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Goods and Services Tax – Started By: – Ramakrishnan Seshadri – Dated:- 20-7-2018 Last Replied Date:- 22-7-2018 – Dear sir.We are the manufacturers of automobile parts supplying to OEM. We are having a paintshop with sandbooth area.We have shifted the sandbooth area from one place in the factory paintshop to another place in the paintshop.For that work done, the service provider has raised invoice charging gst. My question is whether gst paid on that invoice , credit is eligible or not. shall we

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Goods and Services Tax – Started By: – kollengode venkitaraman – Dated:- 20-7-2018 Last Replied Date:- 25-7-2018 – A CHARITABLE TRUST REGD U/S 12A OF THE IT ACT IS RUNNING A HOSPITAL. THE SERVICES ARE RENDERED AT NO PROFIT NO LOSS BASIS. A PHARMACY IS ALSO RUN BY THE TRUST INSIDE THE HOSPITAL AND SALES ARE TO PATIENTS TO WHOM PRESCRIPTION IS GIVEN BY THE HOSPITAL DOCTOR.OUTSIDERS DO NOT PATRONISE THE PHARMACY, THE OUTWARD SUPPLY OF MEDICINES BY THE PHARMACY EXCEEDS RS.20 LAKHS. CAN THE TRUST CL

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Goods and Services Tax – GST – By: – Bimal jain – Dated:- 20-7-2018 – GST Charcha: Consultancy and support services aren t composite supply in GST Facts of the case: M/s Five Star Shipping ( the Applicant or FSS ) is a partnership firm providing Marine Consultancy Services ( MCS ) to Indian/ Foreign ship owners. MCS provided by the applicant includes following types of services: • Consultancy services viz. analyzing commodity, shipping & freight market (i.e. collecting marketing intelligence and updates) which is disbursed to the ship owners along with finding potential charters for the foreign ship owners. • Support services viz. monitoring voyage execution for smooth & efficient operations, optimizing global trade & revenue for ship owners, examine lay time calculations, arranges for reconciliation of accounts for eventual settlement with the charters. The Applicant was paid fee as a percentage of gross revenue in each charter party contract, which was payable

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l 18, 2018, perused the Agreement for supplying MCS services and ruled as under: • Provision of MCS does not constitute composite supply in GST on account of following: Both services have been specifically set out in the Agreement and there is no guarantee that any or all the services will be assigned to the Applicant; Foreign ship owner is at liberty to appoint other consultant(s) for part of the activities; By specific design of the contract, any service which could not be identified and said to be the principal supply; To foreign ship owner, both the services are important, and none could be identified as principal supply. • Supply of consultancy services, when supplied distinctively with separate fee shall not fall under category of Management consultancy as consultancy services provided by the Applicant are not in nature of guiding ship owning company in the management of their company but are only in the nature of consultancy in respect of opportunities of marine transp

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s) for part of the activities, may not be taken as the deciding factor. If so happens then the illustration provided in Section 2(30) of the CGST Act, 2017, which states that where goods are packed and transported with insurance, the supply of goods, packing materials, transport and insurance is a composite supply and supply of goods is a principal supply , would also become futile. Here also, the party is at liberty to choose or not to choose any or all of the services with supply of goods. Reference may further be drawn from ruling of Hon ble AAR, West Bengal in the application filed by In Re : M/s Global Reach Education Services Pvt Ltd, 2018 (4) TMI 808 – AUTHORITY FOR ADVANCE RULING, WEST BENGAL where the applicant was engaged in overseas education advisory, promoting various courses of foreign Universities in India among prospective students, making the prospective students aware about the course fee and other associated costs, market intelligence about the latest educational tre

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Goods and Services Tax – GST – By: – Pratyush Parashar – Dated:- 20-7-2018 – SOME CRYING ISSUES OF GST Series 1- GST Registration Introductory edition The Baby GST has celebrated its first BDAY let s try to get the mumbling of this Baby with my best endeavor to decode the sounds which actually have the alphabets but no meaning. Starting with the registration process in GST covered under Section 22 to Section 30 of the CGST Act. Section 22 (1) provides Every supplier shall be liable to be registered under this Act in the State or Union territory, other than special category States, from where he makes a taxable supply of goods or services or both, if his aggregate turnover in a financial year exceeds twenty lakh rupees: Provided that where

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king Nil Rated supply is also liable for registration in spite of the fact there is no liability of GST on him. Should the NIL Rated Supply be not included in the definition of Taxable Supply for the purpose of this Section and Section 23 which deals with the situation where no registration is required? GST is a Destination Based Taxation it means the consumer state will have the right over Tax Revenue however registration process is on Origination Based. Further all the compliances related to GST has to complied with State Authority from where he is making a supply ( it is being assumed that the supplier is allotted to State Authority). This means all the expenses of GST Department of a State is to generate the Revenue of other State. So i

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2018 (7) TMI 1445 – CESTAT NEW DELHI – TMI – Refund claim of service tax paid erroneously – refund was rejected on the ground of Time Limitation – Section 11B of the Central Excise Act – the appellant has prayed that the time limit under Section 11B will not be applicable since the tax has been paid by mistake when there was no tax liability – unjust enrichment.
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Held that:- The Larger Bench of the Tribunal in the case of Veer Overseas [2018 (4) TMI 910 – CESTAT CHANDIGARH] has been held that the time limits prescribed under Section 11B will govern all refund claims of Service Tax – refund rightly denied.
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Unjust enrichment – Held that:- Perusal of some of the sample tickets/ booking confirmations indicates that no Service Tax has been recovered along with fare. This fact has also been categorically certified by the Chartered Accountant after perusal of the books of accounts of the appellant for the relevant period – rejection of refund on this ground not tenable.
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Appe

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d of time bar. Part of the refund, which was filed within the time limit was rejected on the ground of unjust enrichment. The findings were upheld by the Commissioner (Appeals). Hence the present appeal has been filed. 2. With the above background we heard Shri Sandeep Mukherjee, CA for the appellant as well as Shri G.R. Singh, Ld. DR for the Revenue. 3. On the ground of time bar, he argued that the time limits specified in Section 11B of the Central Excise Act will not be applicable to the facts of the present case, since the activity for which Service Tax was paid was not a taxable service during the relevant time and the tax was paid by mistake. In this connection he relied on the decision of the Tribunal in case of Monnet International Ltd. 2017 (3) GSTL 380 (Tri.-Del). 4. On the ground of unjust enrichment, he submitted that the appellant has never charged or collected Service Tax from the passengers at the time of issue of tickets. In support of such contentions he submitted the

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nd claims. A part of the refund claims have been rejected on the ground of time bar, since the claims have been filed beyond the time limit prescribed under Section 11B. In this connection the appellant has prayed that the time limit under Section 11B will not be applicable since the tax has been paid by mistake when there was no tax liability. In this connection we have perused the decision of the Larger Bench of the Tribunal in the case of Veer Overseas (supra). Wherein it has been held that the time limits prescribed under Section 11B will govern all refund claims of Service Tax. BY following the decision of the Larger Bench, we find no infirmity in the view taken by lower Authorities in rejecting the claim of refund on the ground of time bar and we uphold the same. 7. Portion of refund filed within time limit under Section 11B has been rejected on the ground of unjust enrichment. The claim of the appellant is that they have not recovered Service Tax from the passengers to whom tick

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GST – States – F.A-3-22-2018-1-V-(59) – Dated:- 20-7-2018 – Commercial Tax Department Mantralaya, Vallabh Bhawan, Bhopal Bhopal, the 20th July, 2018 F.A-3-22-2018-1-V-(59).- In exercise of the powers conferred by Section 164 of the Madhya Pradesh Goods and Services Tax Act, 2017 (19 of 2017), the State Government hereby makes the following rules further to amend the Madhya Pradesh Goods and Services Tax Rules, 2017, namely:- AMENDMENTS They Shall be deemed to have come into force with effect fr

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GST – States – KA.NI.-2-1346/XI-9(42)/17 – Dated:- 20-7-2018 – Uttar Pradesh Shasan Sansthagat Vitta, Kar Evam Nibandhan Anubhag -2 NOTIFICATION NO.KA.NI.-2-1346/XI-9(42)/17-U.P.GST Rules-2017-ORDER-(131)-2018, Lucknow : Dated : 20-7-2018 NOTIFICATION In exercise of the powers conferred by Section 164 of the Uttar Pradesh Goods and Services Tax Act, 2017 (U.P. Act No. 1 of 2017), read with section 21 of the Uttar Pradesh General Clauses Act, 1904 (U.P. Act No. 1 of 2017) the Governor is pleased to make the following rules with a view to amending the Uttar Pradesh Goods and Services Tax Rules, 2017, namely:- Short title and commencement 1. (1) These Rules may be called the Uttar Pradesh Goods and Services Tax (Eighteenth Amendment) Rules, 2

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ted to the said transporter: Provided that where the said transporter has obtained a unique common enrolment number, he shall not be eligible to use any of the Goods and Services Tax Identification Numbers for the purposes of the said Chapter XVI. ; Amendment in rule 138C. 3. In the said rules, in rule 138C, after sub-rule (1), the following proviso shall be inserted, namely:- Provided that where the circumstances so warrant, the Commissioner, or any other officer authorized by him, may, on sufficient cause being shown, extend the time for recording of the final report in Part B of FORM EWB- 03, for a further period not exceeding three days. Explanation.- The period of twenty four hours or, as the case may be, three days shall be counted fr

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2018 (8) TMI 629 – RAJASTHAN HIGH COURT – TMI – Works Contract Service – Construction of building or civil structure services – Commercial Building or not – Exemption to the “Turnkey Projects” – Whether the ld. CESTAT was right in law in extending the benefit of exemption to the “Turnkey Projects” which is available to the ‘construction of building or civil structure services’ covered under clause (ii)(b) of Works Contract service, but is not available to “Turnkey Projects” covered under clause (ii)(e) of Works Contract service, as both these services are entirely different?
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Held that:- The hostel which was constructed was a girls hostel and hospital which was need of the Jaipur was constructed. In that view of the matter, it was not commercial building as per the language used and the activities neither fall under commercial activities nor industrial activities, it is purely a social activity where the girls hostel is constructed for girls students in city of Surat and hospital

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as both these services are entirely different? 3. The facts of the case are that the assessee is engaged mainly in the business of providing various types of civil construction works on contract basis, being allotted by the State & Central Government departments, undertakings and bodies like Central Public Works Department, Military Engineer Service, Space Application Centre, National Building Construction Corporation of India and some Private companies, at different locations in the states of Rajasthan and Gujarat. The said Service provider had been registered with Service Tax department under the Commercial construction service provider had been registered with Service Tax department under the Commercial construction service and Works contract service category, having Service Tax Registration No.AAACJ3635PST001 and paying Service Tax on the Construction work carried out them for the private companies. 3.1 An intelligence was received by the Directorate General ofCentral Excise I

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s P. Ltd. is engaged in construction of buildings and civil structures and that apart from him, Shri Ashish Ramesh Agarwal, Shri Prashant Omprakash Agarwal and Shri C.K. Agarwal are the other directors of the company. A statement of Shri Ramesh Chandra Agarwal, the Director of M/s Jatan Constructions P. Ltd. was recorded on 18.7.2011, under Section 14 of Central Excise Act, 1944, read with Section 83 of the Finance Act, 1994, wherein, he stated tht he is supervising the activities of the Company and the work related to taxation matter is being looked after by shri Prashant Agarwal, the other Director of their company. He further submitted that from 2006-07 onwards, the following two work contracts have been received by their company from M/s National Building Construction Corporation of India Ltd. i.e. NBCC (hereinafter referred to as NBCC): a. Construction of new civil and allied works for Post-Graduate Girls Hostel at Sardar Vallabhbhai National Institute of Technology Surat. The wor

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found that: (1) the civil construction work carried out by the assessee for M/s NBCC, on completion of the entire work, the building or premises constructed by them, was handed over to M/s NBCC and the property was thus transferred, which fulfills the main condition of any service to qualify for being covered under the definition of works contract service; (2) the above two civil construction works have been allotted back to back to the assessee through the Engineering Procurement and Construction, i.e. EPC mode; therefore, the second condition of the definition of the works contract was also fulfilled; (3) the assessee, vide their letter dated16.7.2012, submitted details of payment received from NBCC for the above two projects and on going through the details of payments, it was found that the VAT on works contract is included in the total amount of the cheque which meets the basic condition no.1 of works contract service; (4) the assessee had used their own equipment, resources, man

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. Explanation.- For the purposes of this sub-clause, works contract means a contract wherein,- (I) transfer of property in goods involved in the execution of such contract is leviable to tax as sale of goods, and (ii) such contract is for the purposes of carrying out,- (a) erection, commissioning or installation of plant, machinery, equipment or structures, whether pre-fabricated or otherwise, installation of electrical and electronic devices, plumbing, drain laying or other installations for transport of fluids, heating, ventilation or air-conditioning including related pipe work, duct work and sheet metal work, thermal insulation, sound insulation, fire proofing or water proofing, lift and escalator, fire escape staircases or elevators; or (b) construction of a new building or a civil structure or a part thereof, or of a pipeline or conduit, primarily for the purposes of commerce or industry; or (c) construction of a new residential complex or apart thereof; or (d) completion and fin

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carried out the abovementioned works allotted to them under the two contracts in the time period from 2008-09 to 2011-12, after issuance of Letter of awards to them by M\s NBCC. During the course of search conducted at the premises of M/s Jatan Constuction P. Ltd. on 18.07.2011, it was found that M/s Jatan Constructions P. Ltd., had not paid the applicable amount of Service Tax on the taxable value received by them from M/s NBCC, in respect of the above two civil construction works. Therefore, M/s Jatan Construction P. Ltd. was required to pay Service Tax on the payments received by them for the two works carried out by them at Surat and Jaipur, for M/s NBCC. 17.1 I have carefully gone through the caserecords, including defense reply and submissions made during personal hearings. The issues before me to decide is (I) whether assessee is sub contractor of M/s. National Building Construction Corporation Ltd. (NBCC) (II) whether construction activity of P.G. Hostel at SVNIT Surat and ESI

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it.First of all I take up the issue of whether the assessee is sub-contractor of NBCC or net. Reliance is placed on letter No. NBCC/AGM/LOA/2009/1208 dated 15.1.2009, written by M/s NBCC to the assessee, wherein cost of the project, period of construction and other terms and conditions of the agreement were mentioned. The assessee was directed to furnish bank guarantee, insurance coverage and obtaining statutory licenses. The letter written by Sh. A.K. Gupta AGM of NBCC, specifically mentioned that This letter of award shall form part of the contract agreement. This letter of award is being issued in duplicate. The duplicate copy is to be signed and stamped by the authorized signatory of your company and is to be returned to this office in token of your confirmation and acceptance in full . In this letter the contract was for construction of P.G. Hostel at SVNIT, Surat. The cost of the said project was revised vide letter dated 12.3.2010. Similar letter No. NBCC/GM-RBG (E&I) ESIC/J

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service & it exclusively falls under 65(105)(zzq) i.e. construction service. Since the projects, pertained to hospital and hostel, belonging to government department, the same are neither commercial nor industrial, but are for general public utility and charitable in nature. Therefore, they are exempted from levy of service tax. I find that criteria to classify the service under any specific category will depend upon the terms and conditions of the contract dated 15.1.2009 and 3.3.2009 wherein it is specifically mentioned that with reference to your tender for the above mentioned work, we are pleased to accept your tender for the amount, worked out on the basis of rates quoted by you on the Bill of Quantities of the tender documents on terms and conditions referred. It is also requested to mobilize immediately your site personnel plant and equipments and other resources so that work can be started as per schedule. I find that nature of contract, their terms and conditions, the run

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wise. Installation of electrical and electronic devices, plumbing drain laying or other installations for transport of fluids, Heating, ventilation or air-conditioning including related pipe work, duct work and sheet metal work, thermal insulation, sound insulation, fire proofing or water, proofing, lift and escalator, fire escape staircases or elevators; or (b) Construction of new building or a civil structure or a part thereof, or of a pipeline or conduit, primarily for the purposes of commerce or industry; or- (c) Construction of a new residential complex or a part thereof; or (d) Completion and finishing services, repair, alteration, renovation or restoration or, or similar services, in relation of (d) and (e) above; or (e) Turnkey projects including engineering, procurement and construction or commissioning (EPC) projects. 4. He contended that the Tribunal has seriously committed an error in taking a view inspite of the decision of Banglore Tribunal in Ramky Infrastructure Ltd. vs

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, according to the counsel for the appellants, any service provided in relation to "dams" and "irrigation" should be deemed to have been excluded from the purview of "works contract service" as well. There is no warrant for deeming so inasmuch as every taxable entry needs to be understood with reference to the language used in such entry and, accordingly, a given service has to be classified, which is the mandate of subsection (1) of Section 65A of the Finance Act, 1994. We have not found anything in the text of the definition of "works contract" to indicate that turnkey/EPC projects for irrigation are excluded from the ambit of taxable service of works contract With regard to "dams", we have already expressed our views in para (10.6) of this order. As rightly submitted by the learned Special Consultant for the Department, there is no room for any intendment or assumption or presumption and, where the words of the statute are plain and

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However, in our considered opinion, the Tribunal clearly observed as under: 7. Admittedly, in the present case the construction activity of the appellant is with reference to student s hostel and the public hospital. These are non-commercial buildings. Accordingly, these are excluded from tax liability under works contract service. 6. It is thus clear that the hostel which was constructed was a girls hostel and hospital which was need of the Jaipur was constructed. In that view of the matter, it was not commercial building as per the language used and the activities neither fall under commercial activities nor industrial activities, it is purely a social activity where the girls hostel is constructed for girls students in city of Surat and hospital in Jaipur. 7. Thus, we are in complete agreement with the view taken by the Tribunal. No substantial question of law arises in the appeal. 8. The appeal stands dismissed. – Case laws – Decisions – Judgements – Orders – Tax Management India

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2018 (8) TMI 771 – AUTHORITY FOR ADVANCE RULINGS WEST BENGAL – 2018 (15) G. S. T. L. 712 (A. A. R. – GST) – Supply of goods or services – continuous supply of services or not? – time of supply – Contract Management System (CMS) – The Applicant is very clear in stating that the procedure undertaken under the proposed CMS will not involve transfer of title to the refractories used in course of the production process. Use of the refractories delivered to the customer, including application and disposal, will continue to be controlled by the Applicant.
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Held that:- It is clear from the description of the activities proposed to be undertaken that the Applicant supplies service associated with the manufacturing of metal, value of which is measured at an agreed rate per tonne of hot metal produced and that the Applicant manufactures refractories, which are used as inputs as defined under Section 2(59) of the GST Act.
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Provisioning of the service involves, inter alia, round-the-cloc

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to undertake are services associated with manufacturing of metal, and may be termed as “continuous supply of service” within the meaning of Section 2(33) of the GST Act, provided the service is agreed to be provisioned for a period exceeding three months.
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The time of supply shall be the date of issue of invoice in terms of Section 13(2) (a), read with Section 31(2) of the GST Act and Rule 47 of the GST Rules. – ARN No. 15 of 2018 – 13/WBAAR/2018-19 – Dated:- 20-7-2018 – VISHWANATH AND PARTHASARATHI DEY MEMBER Applicant s representative heard Sri Soumitra Gooptu, Authorized Representative Sri Sohrab Bararia, FCA 1. The Applicant, stated to be a supplier of end to end system solutions for controlled casting of iron and steel which includes supply of refractory components and associated services. The Applicant now intends to offer a new supply, namely Contract Management System (hereinafter referred to as CMS ), and is seeking a Ruling on whether the activity proposed to be undertak

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o application, installation and fixation of various refractories. The Applicant will design the refractories required, monitor their usage and inventory, and supply the required refractory components and systems. This apart, the Applicant will monitor round-the-clock the flow of iron and steel. The CMS will include the following processes. a) Total Tundish Management (hereinafter referred to as TTM ) – Tundish is a bathtub like material where hot steel is poured and collected. It then flows into the mould and takes the desired shape. Several such tundishes are used on rotational basis in course of production of steel. They are lined with refractory for providing protection to the vessels. Refractory components and systems are also fitted to the tundishes for monitoring the process. They help controlling the flow of the liquid steel into the moulds. These refractories need to be replaced frequently. The systems also need timely and regular maintenance. The TTM proposes to provide contin

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d maintained on regular basis. Refractories are also to be applied on the walls of the trough so that they can hold the hot metal. TMS offers activities that include erection and maintenance of these troughs, including regular application of refractories on the walls. Consideration for TMS will be paid at an agreed rate for every tonnage of hot iron produced. 4. The Applicant submits that the scope of work for CMS, specifically TTM and TMS, involves, inter alia, Refractory design, supply, application, performance, inventory management, and disposal post application; 24/7 monitoring of flow of the hot metal, and quality control of the steel production process. 5. The Applicant is very clear in stating that the procedure undertaken under the proposed CMS will not involve transfer of title to the refractories used in course of the production process. Use of the refractories delivered to the customer, including application and disposal, will continue to be controlled by the Applicant. Furt

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ontinuous supply of service within the meaning of Section 2(33) of the GST Act, provided the service is agreed to be provisioned for a period exceeding three months. 9. In the present context provisioning of the service is measured on monthly basis, and the date of payment is within thirty days from end of the month (as stated in clause 4 of the intended Agreement with the Customers). The tax invoice shall, therefore, be issued in terms of Section 31(5)(b) on or before the supplier receives the payment, and the time of supply shall be the date of issue of invoice in terms of Section13(2)(a) read with Section 31(2) of the GST Act and Rule 47 of the GST Rules. In view of the foregoing we rule as under: RULING Activities the Applicant proposes to undertake are services associated with manufacturing of metal, and may be termed as continuous supply of service within the meaning of Section 2(33) of the GST Act, provided the service is agreed to be provisioned for a period exceeding three mon

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