Author: admin_gst

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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Seeks to insert explanation in an entry in notification No. 1136-F.T. dated 28.06.2017 by exercising powers conferred under section 11(3) of WBGST Act, 2017
1426-F.T. Dated:- 28-9-2018 West Bengal SGST
GST – States
West Bengal SGST
West Bengal SGST
GOVERNMENT OF WEST BENGAL
FINANCE DEPARTMENT
REVENUE
NOTIFICATION
No. 1426-F.T.
Howrah, the 28th day of September, 2018.
No. 23/2018-State Tax (Rate)
In exercise of the powers conferred by sub-section (3) of section 11 of the West Bengal Goods and Services Tax Act, 2017 (West Ben. Act XXVIII of 2017), the Governor, on the recommendations of the Council, and on being satisfied that it is necessary so to do for the purpose of clarifying the scope and applicability of the noti

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APGST Rules, 2017- Rule 142(5)-Demands in Form GST DRC 07 to be uploaded Electronically-Certain Instructions.
CCW/GST/74/2015 Dated:- 28-9-2018 Andhra Pradesh SGST
GST – States
Government of Andhra Pradesh
Commercial Taxes Department
Office of the
Chief Commissioner of State Tax
Andhra Pradesh,
Eedupugallu,Vijayawada
CIRCULAR
CCT's Ref.No.CCW/GST/ 74/2015 Dated :28.09.2018
Sub – APGST Rules, 2017- Rule 142(5)-Demands in Form GST DRC 07 to be uploaded Electronically-Certain Instructions-Reg
The officers of the CT department have been conducting check of vehicular traffic and whenever irregularities are noticed. taxes 'viz SGST.CGST or IGST and penalties are collected. During shop inspections, whenever any irregulari

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the relevant form DRC 07 on its portal.
Further. suitable additions are provided by IT wing to obtain the required MIS reports. Hence, the Form GST DRC 07 to be accessed through APTis.
There are main heads of Demands from which one should be selected
A. CVT (Sec 129); B-CVT(Sec 130); C-SI (Sec 67)- sec 73; D-SI (Sec 67)-sec 74; E-Sec 125: F-Others
Besides, the following options. can be selected (more than one possible) 1. classification 2. Valuation 3. Rate of Tax 4. Suppression of T.O. 5. Excess ITC claimed 6. Place of Supply. 7 Excess Refund released.
All the field officers are required to enter the particulars of demands raised after the introduction of GST, duly following the above procedure.
All the Joint Commissioner(ST)s are r

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Special Procedure for filing outward supplies in GSTR-1 for suppliers whose aggregate turnover is up to 1.50 crore rupees in the preceding financial year or the current financial year.
G.O.MS.No. 497 Dated:- 28-9-2018 Andhra Pradesh SGST
GST – States
Andhra Pradesh SGST
Andhra Pradesh SGST
GOVERNMENT OF ANDHRA PRADESH

REVENUE (COMMERCIAL TAXES-II) DEPARTMENT
G.O.MS.No. 497 Dated: 28-09-2018.
NOTIFICATION
In exercise of the powers conferred by section 148 of the Andhra Pradesh Goods and Services Tax Act, 2017 (16 of 2017) (hereafter in this notification referred to as the said Act), and in supercession of –
(i) GOMs No. 562, Revenue(CT-II) Dept., dated 24th November,2017 ; and
(ii) GOMs No.496, Revenue (CT-II) Dept., d

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l the time period as specified in the corresponding entry in column (3) of the said Table, namely:-
Table
Sl. No.
Quarter for which details in FORM GSTR-1 are furnished
Time period for furnishing details in FORM GSTR-1
(1)
(2)
(3)
1
July – September, 2017
31st October, 2018
2
October – December, 2017
31st October, 2018
3
January – March, 2018
31st October, 2018
4
April – June, 2018
31st October, 2018
5
July – September, 2018
31st October, 2018
6
October – December, 2018
31st January, 2019
7
January – March, 2019
30th April, 2019
Provided that the details of outward supply of goods or services or both in FORM GSTR-1 for the quarter from July, 2018 to September, 2018 by-
(i) registered persons in the State of Ker

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Special Procedure for filing outward supplies in GSTR-1 for suppliers whose aggregate turnover is up to 1.50 crore rupees in the preceding financial year or the current financial year – Furnishing of Quarterly returns – July,2018 to March,2019- Extension of time.
G.O.MS.No. 496 Dated:- 28-9-2018 Andhra Pradesh SGST
GST – States
Andhra Pradesh SGST
Andhra Pradesh SGST
GOVERNMENT OF ANDHRA PRADESH
–
REVENUE (COMMERCIAL TAXES-II) DEPARTMENT
G.O.MS.No. 496 Dated: 28-09-2018
NOTIFICATION
In exercise of the powers conferred by section 148 of the Andhra Pradesh Goods and Services Tax Act, 2017 (Act No.16 of 2017), the Government, on the recommendations of the Goods and Services Tax Council, hereby notify the registered pers

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M/s. Napin Impex Private Ltd. Versus Commissioner of DGST, Delhi & Ors.
GST
2018 (10) TMI 254 – DELHI HIGH COURT – 2018 (19) G. S. T. L. 578 (Del.)
DELHI HIGH COURT – HC
Dated:- 28-9-2018
W. P. (C) 10287/2018
GST
MR. S. RAVINDRA BHAT AND MR. A. K. CHAWLA JJ.
Petitioner Through: Mr. Surendra Kumar and Mr. A.K. Babbar, Advs.  
Respondents Through: Mr. Gautam Narayan, ASC, GNCTD.
O R D E R
Issue notice to the respondents.
Mr. Gautam Narayan, Additional Standing Counsel accepts notice on behalf of the respondents.
The petitioner's grievance is that the sealing of its business premises on behalf of the Delhi Goods and Services Tax (DGST), ostensibly under Section 67 of the Central Goods and Services Tax Act, 2017, is illegal.
The brief facts are that the petitioner is a registered dealer, which trades inter alia in PVC raisins and other food items such as beverages. The petitioner alleges that its premises were visited by the Revenue authorities on 29.08.20

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any transaction relating to supply of goods or services or both or the stock of goods in hand, or has claimed input tax credit in excess of his entitlement under this Act or has indulged in contravention of any of the provisions of this Act or the rules made thereunder to evade tax under this Act; or
(b) any person engaged in the business of transporting goods or an owner or operator of a warehouse or a godown or any other place is keeping goods which have escaped payment of tax or has kept his accounts or goods in such a manner as is likely to cause evasion of tax payable under this Act, he may authorise in writing any other officer of central tax to inspect any places of business of the taxable person or the persons engaged in the business of transporting goods or the owner or the operator of warehouse or godown or any other place.  
(2) Where the proper officer, not below the rank of Joint Commissioner, either pursuant to an inspection carried out under sub-section (1) or o

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s produced by a taxable person or any other person, which have not been relied upon for the issue of notice under this Act or the rules made thereunder, shall be returned to such person within a period not exceeding thirty days of the issue of the said notice.
(4) The officer authorised under sub-section (2) shall have the power to seal or break open the door of any premises or to break open any almirah, electronic devices, box, receptacle in which any goods, accounts, registers or documents of the person are suspected to be concealed, where access to such premises, almirah, electronic devices, box or receptacle is denied.”  
In this case, the authorization to break-open seals, etc. and carry out search of the premises – under Rule 139(1) in Form GST INS-I relied upon by the Revenue states as follows :
“Government of National Capital Territory of Delhi
Department of Trade & Taxes
Enforcement Branch
Vyapar Bhawan, I.P. Estate, New Delhi-02
No.72
Date : 29/08/2018
FORM GST

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equire you to inspect the premises belonging to the above mentioned person with such assistance as may be necessary for inspection of goods or documents and / or any other things relevant to the proceedings under the said Act and rules made thereunder.
OR
In exercise of the powers conferred upon me under subsection (2) of section 67 of the Act, I authorize and require you to search the above premises with such assistance as may be necessary, and if any goods or documents and / or other things relevant to the proceedings under the Act and rules made thereunder.
Any attempt on the part of the person to mislead, tamper with the evidence, refusal to answer the questions relevant to inspection j search operation, making of false statement or providing false evidence is punishable with imprisonment and for fine under the Act read with section 179, 181, 191 and 418 of the Indian Penal Code .
Given under my hand & seal this 29th day of August, 2018.
Valid for 03 Day(s).”
It is claimed t

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In Re : Ashok Kumar Basu, carrying on business under the trade name “Manali Enterprise”
GST
2018 (10) TMI 309 – AUTHORITY FOR ADVANCE RULINGS WEST BENGAL – 2018 (18) G. S. T. L. 49 (A. A. R. – GST)
AUTHORITY FOR ADVANCE RULINGS WEST BENGAL – AAR
Dated:- 28-9-2018
18/WBAAR/2018-19, 19 of 2018
GST
VISHWANATH AND PARTHASARATHI DEY MEMBER
Applicant's representative: Sri Tirthankar Banerjee, Advocate
1. The Applicant, stated to be, inter alia, supplier of printed question papers for various examinations conducted by the Government/Government aided Educational Boards/ Councils/ Universities etc is seeking a Ruling on whether GST is to be charged on such supply and, if so, at what rate and under what HSN or SAC code is the GST to be charged?
The Applicant also wants to know whether credit of the GST paid on the inputs used for provisioning the supply can be availed.
Advance Ruling is admissible on these questions under Sections 97(2)(a),(d)&(e) of the CGST/WBGST

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ards/Universities/Institutions supplying the matter.
The Application also states that the Applicant's customers, being either Government organisations or Government aided organisations, are not paying GST on the services so provided, which is rendering them unable to take credit on the GST paid during purchase of inputs.
3. It is necessary to determine whether the Question Papers supplied by the Applicant are “goods” or “services” before considering the other questions on which Ruling has been sought. Under Section 2(52) of the GST Act, “goods” is defined as “every kind of movable property other than money and securities but includes actionable claims, growing crops, grass and things attached to or forming part of the land which are agreed to be severed before supply or under a contract of supply”.
“Property” is not defined under the GST Act. However, the lexicon meaning of “property” is “a thing or things belonging to someone.”
Under Section 2(102) of the GST Act, “services” is de

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

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

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to admission to or conduct of examination by Educational Institutions) under Heading 9992. Since the Applicant has specified the printing of question papers for Educational Institutions, supply of service under Section 9 of the GST Tariff is found to be appropriate.
9. GST Rates for services whether or not exempt are governed by Notifications No. 11/2017-CT (Rate) and 12/2017-CT (Rate) dated 28/06/2017, as amended from time to time. No exemption is granted for supply of printing services to Government/Government aided Educational Boards/Councils/Universities/Institutions merely by virtue of being Government/ Government-aided Institutions. Notification No. 12/2017-CT.(Rate) dated 28/06/2017, however, deals with Educational Board/Councils/Universities etc whether or not they are Government/ Government-aided.
10. Serial No. 66(b)(iv) of Notification No. 12/2017-CT(Rate) dated 28/06/2017, as amended from time to time, as applicable, wholly exempts services provided to an Educational Inst

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ational Boards/Councils/Universities/Institutions relating to the conduct of examination.
11. Section 17(2) of GST Act states that “Where the goods or services or both are used by the registered person partly for effecting taxable supplies including zero-rated supplies under this Act or under the Integrated Goods and Services Tax Act and partly for effecting exempt supplies under the said Acts, the amount of credit shall be restricted to so much of the input tax as is attributable to the said taxable supplies including zero-rated supplies.”
Since the supply of Question Papers to Educational Institutions if provided, for a particular examination is an exempt supply under Serial No. 66(b)(iv) of Notification No. 12/2017-CT (Rate) dated 28/06/2017, as amended, as applicable, the Applicant is not eligible to avail of Input Tax Credit.
In view of the foregoing we rule as under
RULING
a) Service of printing Question Papers for Educational Institutions [as defined under clause 2(y) read

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Shri Ashok Agarwal, Director, M/s Agarwal Insulator Pvt. Ltd. Versus CGST CCE, Delhi – I
Central Excise
2018 (10) TMI 314 – CESTAT NEW DELHI – 2018 (362) E.L.T. 885 (Tri. – Del.)
CESTAT NEW DELHI – AT
Dated:- 28-9-2018
Excise Appeals No. 51519 and 52214 of 2018 (SM) – Final Order No. 53057-53058/2018
Central Excise
Shri Ashok Jindal, Member (Judicial)

For the Appellants : Shri Somesh Arora, Advocate

For the Respondent : Shri P.R. Gupta, Authorized Representative (DR)

ORDER

PER. ASHOK JINDAL :-

The appellants are in appeal against the impugned order wherein demand of duty of Rs. 7,11,718/- has been confirmed against the main appellant alongwith interest and equivalent amount of penalty and penalty of Rs. 50,000/- has been imposed on the co-appellant Shri Ashok Agarwal, Director of the company.

2. The facts of the case are that on being received intelligence that the appellants are availing SSI exemption but their turnover has crossed more than Rs

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said order, the appellants are before me.

3. The learned Counsel appearing on behalf of the appellants submit that during the course of investigation nothing incriminating was found in their factory premises. All stocks were found in order. Merely on the basis of some loose sheets recovered from the residence of the Director cannot be the basis for alleging clandestine removal of goods in the absence of any corroborative evidence to show that from where the raw material/inputs were procured, where the goods were sold, how the goods were transported, how much electricity were consumed and what is the production capacity of the appellant. In the absence of any corroborative evidence, demand is not sustainable. He also submits that the son of the Director has filed an affidavit explaining these loose sheets, in question, and owned the same and his own responsibility and these loose sheets written by him, but no credence was given to the affidavit, in that circumstances, the demand is

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hat in this case the sole issue arises is that whether in the facts and circumstances of the case, charge of clandestine removal is sustainable against the appellants or not.

7. I find that in this case during the course of investigation, in the factory premises of the appellant, nothing incriminating was found. Moreover, the stocks of raw material as well as finished goods has also found tallied with the statutory records. There are certain loose sheets recovered from the residence of the Director of the appellant company and on the basis of this, the case has been made out against the appellant. I have seen those loose sheets and one of the loose sheet is extracted separately for reference.

8. On going through the said loose sheet, I find that some name i.e. M. Vijayvada is written thereon but to ascertain the truthness of said clearance, no effort has been made by the Revenue to investigate or to find out who is M. Vijayvada. If that effort could have been done, then truth cou

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ed order and allow the appeal with consequential relief (if any).

(Order dictated and pronounced in the open court.)

Encl: As Above

=============
Document 1
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THE HARYANA GOODS AND SERVICES TAX (AMENDMENT) ACT, 2018
Leg. 30/2018 Dated:- 28-9-2018 Haryana SGST
GST – States
Haryana SGST
Haryana SGST
HARYANA GOVERNMENT
LAW AND LEGISLATIVE DEPARTMENT
Notification
The 28th September, 2018
No. Leg. 30/2018.- The following Act of the Legislature of the State of Haryana received the assent of the Governor of Haryana on the 24th September, 2018 and is hereby published for general information:-
HARYANA ACT NO. 25 OF 2018
THE HARYANA GOODS AND SERVICES TAX (AMENDMENT) ACT, 2018
AN
ACT
further to amend the Haryana Goods and Services Tax Act, 2017.
Be it enacted by the Legislature of the State of Haryana in the Sixty-ninth Year of the Republic of India as follows:-
Short title and commencement.
1. (1) This Act may be called the Haryana Goods and Services Tax (Amendment) Act, 2018.
(2) Save as otherwise provided, the provisions of this Act shall come into force on such date as the Government may, by notification in the Official

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ker or activities of a licensed book maker in such club; and”;
(d) clause (18) shall be omitted;
(e) in clause (35), for the word, brackets and letter “clause (c)”, the word, brackets and letter “clause (b)” shall be substituted;
(f) in sub-clause (f) of clause (69), after the word and figures “article 371”, the words, figures and letter “and article 371J” shall be inserted;
(g) in clause (102),-
(i) for the sign “;” existing at the end, the sign “.” shall be substituted; and
(ii) the following Explanation shall be added, namely:-
“Explanation.- For the removal of doubts, it is hereby clarified that the expression “services” includes facilitating or arranging transactions in securities;”.
Amendment of section 7 of Haryana Act 19 of 2017.
3. In section 7 of the principal Act,-
(a) in sub-section (1),-
(i) in clause (b), after the words “or furtherance of business;”, the word “and” shall be inserted and shall be deemed to have been inserted with effect from the 1st July, 20

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tion (4) of section 9 of the principal Act, the following sub-section shall be substituted, namely:-
“(4) The Government may, on the recommendations of the Council, by notification, specify a class of registered persons who shall, in respect of supply of specified categories of goods or services or both received from an unregistered supplier, pay the tax on reverse charge basis as the recipient of such supply of goods or services or both, and all the provisions of this Act shall apply to such recipient as if he is the person liable for paying the tax in relation to such supply of goods or services or both.”.
Amendment of section 10 of Haryana Act 19 of 2017.
5. In section 10 of the principal Act,-
I. in sub-section (1)-
(i) for the words and sign “in lieu of the tax payable by him, an amount calculated at such rate”, the words, sign, brackets and figures “in lieu of the tax payable by him under sub-section (1) of section 9, an amount of tax calculated at such rate” shall be substi

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ed.
Amendment of section 13 of Haryana Act 19 of 2017.
7. In sub-section (2) of section 13 of the principal Act,-
(a) in clause (a), the words, brackets and figure “sub-section (2) of” shall be omitted; and
(b) in clause (b), the words, brackets and figure “sub-section (2) of” shall be omitted.
Amendment of section 16 of Haryana Act 19 of 2017.
8. In sub-section (2) of section 16 of the principal Act,-
(a) in clause (b), for the Explanation, the following Explanation shall be substituted, namely:-
“Explanation.- For the purposes of this clause, it shall be deemed that the registered person has received the goods or services, as the case may be-
(i) where the goods are delivered by the supplier to a recipient or any other person on the direction of such registered person, whether acting as an agent or otherwise, before or during movement of goods, either by way of transfer of documents of title to goods or otherwise;
(ii) where the services are provided by the supplier to an

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owing taxable supplies, namely:-
(A) further supply of such motor vehicles; or
(B) transportation of passengers; or
(C) imparting training on driving such motor vehicles;
(aa) vessels and aircraft except when they are used-
(i) for making the following taxable supplies, namely:-
(A) further supply of such vessels or aircraft; or
(B) transportation of passengers; or
(C) imparting training on navigating such vessels; or
(D) imparting training on flying such aircraft;
(ii) for transportation of goods;
(ab) services of general insurance, servicing, repair and maintenance in so far as they relate to motor vehicles, vessels or aircraft referred to in clause (a) or clause (aa):
Provided that the input tax credit in respect of such services shall be available-
(i) where the motor vehicles, vessels or aircraft referred to in clause (a) or clause (aa) are used for the purposes specified therein;
(ii) where received by a taxable person engaged-
(I) in the manufacture

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e travel concession:
Provided that the input tax credit in respect of such goods or services or both shall be available, where it is obligatory for an employer to provide to its employees under any law for the time being in force.”.
Amendment of section 20 of Haryana Act 19 of 2017.
10. In section 20 of the principal Act, in clause (c) to the Explanation, for the words and figures “under entry 84”, the words, figures and letter “under entries 84 and 92A” shall be substituted.
Amendment of section 22 of Haryana Act 19 of 2017.
11. In section 22 of the principal Act,-
(a) in sub-section (1),-
(i) in the proviso, for the sign “.” existing at the end, the sign “:” shall be substituted; and
(ii) after the proviso, the following proviso shall be added, namely:-
“Provided further that where such person makes taxable supplies of goods or services or both from a special category State in respect of which the Central Government has enhanced the aggregate turnover referred to in the firs

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conomic Zones Act, 2005 (Central Act 28 of 2005), in a Special Economic Zone or being a Special Economic Zone developer shall have to apply for a separate registration, as distinct from his place of business located outside the Special Economic Zone in the State.”;
(b) for the proviso to sub-section (2), the following proviso shall be substituted, namely:-
“Provided that a person having multiple places of business in the State may be granted a separate registration for each such place of business, subject to such conditions, as may be prescribed.”.
Amendment of section 29 of Haryana Act 19 of 2017.
14. In section 29 of the principal Act,-
(a) in the marginal heading after the word “Cancellation”, the words “or suspension” shall be inserted;
(b) in sub-section (1),-
(i) in clause (c), for the sign “.” existing at the end, the sign “:” shall be substituted; and
(ii) after clause (c), the following proviso shall be added, namely:-
“Provided that during pendency of the proceeding

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e the goods supplied are returned by the recipient, or where goods or services or both supplied are found to be deficient, the registered person, who has supplied such goods or services or both, may issue to the recipient one or more credit notes for supplies made in a financial year containing such particulars, as may be prescribed.”;
(b) for sub-section (3), the following sub-section shall be substituted, namely:-
“(3) Where one or more tax invoices have been issued for supply of any goods or services or both and the taxable value or tax charged in that tax invoice is found to be less than the taxable value or tax payable in respect of such supply, the registered person, who has supplied such goods or services or both, shall issue to the recipient one or more debit notes for supplies made in a financial year containing such particulars, as may be prescribed.”.
Amendment of section 35 of Haryana Act 19 of 2017.
16. In sub-section (5) of section 35 of the principal Act,-
(i) for t

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y, of inward and outward supplies of goods or services or both, input tax credit availed, tax payable, tax paid and such other particulars, as may be prescribed:
Provided that the Government may, on the recommendations of the Council, notify certain classes of registered persons who shall furnish return for every quarter or part thereof, subject to such conditions and safeguards as may be specified therein.”;
(b) in sub-section (7),-
(i) for the sign “.” existing at the end, the sign “:” shall be substituted; and
(ii) the following proviso shall be added, namely:-
“Provided that the Government may, on the recommendations of the Council, notify certain classes of registered persons who shall pay to the Government the tax due or part thereof as per the return on or before the last date on which he is required to furnish such return, subject to such conditions and safeguards as may be specified therein.”;
(c) for sub-section (9), the following sub-section shall be substituted, n

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namely:-
“43A. Procedure for furnishing return and availing input tax credit.- (1) Notwithstanding anything contained in sub-section (2) of section 16, section 37 or section 38, every registered person shall in the returns furnished under sub-section (1) of section 39 verify, validate, modify or delete the details of supplies furnished by the suppliers.
(2) Notwithstanding anything contained in section 41, section 42 or section 43, the procedure for availing of input tax credit by the recipient and verification thereof shall be such, as may be prescribed.
(3) The procedure for furnishing the details of outward supplies by the supplier on the common portal, for the purposes of availing input tax credit by the recipient shall be such, as may be prescribed.
(4) The procedure for availing input tax credit in respect of outward supplies not furnished under sub-section (3) shall be such, as may be prescribed and such procedure may include the maximum amount of the input tax credit which

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in relation to outward supplies, the details of which may be furnished under sub-section (3) by a registered person,-
(i) within six months of taking registration;
(ii) who has defaulted in payment of tax and where such default has continued for more than two months from the due date of payment of such defaulted amount, shall be such, as may be prescribed.”.
Amendment of section 48 of Haryana Act 19 of 2017.
19. For sub-section (2) of section 48 of the principal Act, the following sub-section shall be substituted, namely:-
“(2) A registered person may authorise an approved goods and services tax practitioner to furnish the details of outward supplies under section 37, the details of inward supplies under section 38 and the return under section 39 or section 44 or section 45 and to perform such other functions, in such manner, as may be prescribed.”
Amendment of section 49 of Haryana Act 19 of 2017.
20. In section 49 of the principal Act,-
(a) in sub-section (2), for the word

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ed fully towards such payment.
49B. Order of utilization of input tax credit.- Notwithstanding anything contained in this Chapter and subject to the provisions of clause (d) and clause (e) of sub-section (5) of section 49, the Government may, on the recommendations of the Council, prescribe the order and manner of utilization of the input tax credit on account of integrated tax, Central tax, State tax or Union territory tax, as the case may be, towards payment of any such tax.”.
Amendment of section 52 of Haryana Act 19 of 2017.
22. In sub-section (9) of section 52 of the principal Act, for the word and figures “section 37”, the words and figures “section 37 or section 39” shall be substituted.
Amendment of section 54 of Haryana Act 19 of 2017.
23. In section 54 of the principal Act,-
(a) in sub-section (8), for clause (a), the following clause shall be substituted, namely:-
“(a) refund of tax paid on export of goods or services or both or on inputs or input services used in mak

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07 of the principal Act, after the words “arising from the said order,”, the words “subject to a maximum of twenty-five crore rupees,” shall be inserted.
Amendment of section 112 of Haryana Act 19 of 2017.
26. In clause (b) of sub-section (8) of section 112 of the principal Act, after the words “arising from the said order,”, the words “subject to a maximum of fifty crore rupees,” shall be inserted.
Amendment of section 129 of Haryana Act 19 of 2017.
27. In sub-section (6) of section 129 of the principal Act, for the words “seven days” occurring twice, the words “fourteen days” shall be respectively substituted.
Amendment of section 143 of Haryana Act 19 of 2017.
28. In the proviso to clause (b) of sub-section (1) of section 143 of the principal Act,-
(i) for the sign “.” existing at the end, the sign “:” shall be substituted; and
(ii) after the proviso, the following proviso shall be added, namely:-
“Provided further that the period of one year and three years may, on suffi

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Guidelines for Deductions and Payments of TDS by the DDOs Of State Government Authorities under GST.
ACS/FD/2018 Dated:- 28-9-2018 Karnataka SGST
GST – States
FINANCE SECRETARIAT
CIRCULAR
No. ACS/FD/2018, Bengaluru, dated: 28th September, 2018
Subt: Guidelines for Deductions and Payments of TDS by the DDOs Of State Government Authorities under GST.
Section 51 of the Karnataka Goods and Services Tax(KGST) Act, 2017, Central Goods and Services Tax (CGST) Act, 2017 and Integrated Goods Services Tax (IGST) Act, 2017 provide for deduction of tax by the Government Agencies (Deductor) or any other person as notified in this regard, from the payment made or credited to the supplier (Deductee) of taxable goods or services or both, where the total value of such supply, under a contract, exceeds two lakh and fifty thousand rupees. The amount deducted as tax under this section shall be paid to the Government by deductor within ten days after the end of the month in which such deductio

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which provides for tax deduction at source was not notified to come into force with effect from 1st July 2017, the date from which GST was introduced. Government has recently notified that these provisions shall come into force with effect from 1st October, 2018, vide Government of Karnataka Notification No. FD 47 CSL 2017 dated 14.9.2018 and Notification No. 50/2018-Central Tax dated 13th September, 2018 of Government of India.
4. For payment process of Tax Deduction at Source under GST two options can be followed, which are as under:
Option I: Generation of challan for every payment made during the month.
Option II: Bunching of TDS deducted from the bills on weekly, monthly or any periodic manner.
5. DDOs operating on Khajane 1 shall exercise Option I, selecting OTC cheque mode of payment when generating challan on GST common portal. DDOs operating on Khajane 2 shall exercise Option II, selecting NEFT/RTGS mode of payment with RBI PAD as remitting bank while generating the challa

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ars.
Thereafter, DDO shall prepare a bill for the aggregate TDS amount and submit to treasury for payment to GST. DDO can make TDS payments on a weekly, monthly or any other periodic basis.
8. In order to give effect to the above options from 01.10.2018, a process flow of deduction and payment of TDS by the DDOs has been finalised in consultation with Department of Revenue, Finance Department, Government of India and the Principal Secretary (Khajane 2), Finance Department, Government of Karnataka for guidance and implementation by State Government Authorities. The process flows under both the options are described as under:
Option I – Individual Bill-wise Deduction and its payment by the DDO
9. DDOs who are operating on Khajane 1 shall exercise this option. In this option, the DDO will have to deduct as well as remit the GST TDS for each bill individually by generating a Challan with PIN (Common Portal Identification Number) and attaching it with the Bill itself.
10. Following pr

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mount payable to the Contractor / Supplier / Vendor and
(b) 2% as TDS will be specified
(vi) Treasury officer shall issue a Government Cheque in favour of one of the 25 authorized Banks. The Cheque may then be deposited along with the Challan with CPIN with any of branch of the authorized Bank so selected by the DDO.
(vii) Upon successful payment, a CIN (Challan Identification Number) will be generated by the RBI/ Authorized Bank and will be shared electronically with the GSTN Portal. This will get credited in the electronic Cash Ledger of the concerned DDO in the GSTN Portal. This can be viewed and the details of CIN can be noted by the DDO anytime on GSTN portal using his Login credentials.
(viii) The DDO should maintain a Register as per proforma given in Annexure 'A' to keep record of all TDS deductions made by him during the month. This Record will be helpful at the time of filing Monthly Return (FORM GSTR-7) by the DDO. The DDO may also make use of the offline utilit

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net amount payable to the Contractor/ Supplier/ Vendor and
(b) 2% as TDS under GSTwi11 be specified.
(iv) The TDS amount shall be mentioned in the Bill for booking in the Deposit Account with the Head of Account 8449-00-120-0-xx-662.
(v) The DDO will require to maintain the Record of the TDS of GST being booked under the Deposit Head so that at the time of preparing the Challan at the GST Common Portal with CPIN (Common Portal Identification Number) for making payment on weekly/monthly or any other periodic basis, the total amount could be easily worked out.
(vi) At any periodic interval, when DDO needs to remit the TDS amount, he will prepare the Challan with CPIN on the GST Common Portal for the amount (already booked under the Deposit Account).
(vii) While generating the Challan with CPIN, the DDO will have to select mode of payment as NEFT/RTGS. In the NEFT/RTGS mode, the DDO will have to select the remitting Bank as Reserve Bank of India PAD. GSTN portal shall automatically

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CIN (Challan Identification Number) will be generated by the RBI and will be shared electronically with the GSTN Portal. Through this CIN the TDS amount paid will get credited in the electronic Cash Ledger of the concerned DDO in the GSTN Portal. This can be viewed and the details of CIN can be noted by the DDO anytime on GSTN portal using his login credentials.
(xiii) The DDO should maintain a Register as per proforma given in Annexure 'A' to keep record of all TDS deductions made by him during the month. This Record will be helpful at the time of filing Monthly Return (FORM GSTR-7) by the DDO. The DDO may also make use of the offline utility available on the GSTN Portal for filing the return in Form GSTR-7.
(xiv) The DDO shall file the Return in FORM GSTR-7 by 10th of the following month
(xv) The DDO shall generate TDS Certificate through the GSTN Portal in FORM GSTR-7A
13. Difficulty, if any, in implementation of this circular may please be brought to the notice of the D

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In Re: M/s. National Aluminium Company Ltd., (NALCO)
GST
2018 (10) TMI 748 – AUTHORITY FOR ADVANCE RULING, ODISHA – 2018 (18) G. S. T. L. 508 (A. A. R. – GST)
AUTHORITY FOR ADVANCE RULING, ODISHA – AAR
Dated:- 28-9-2018
ARN 02/ODISHA-AAR/2018-19
GST
SRI ANAND SATPATHY, AND SRI NILANJAN PAN, MEMBER
Present for the Applicant: P.K, Sahu, Advocate
Subject: GST Act, 2017-Advance Ruling in respect of entitlement to take credit of input tax paid on various goods and services used for maintenance of applicant's township, guesthouse, hospital, horticulture in its ordinary course of business.
1.0 M/S National Aluminium Company Ltd., Nalco Bhawan, PO. Nayapajli, Bhubaneswar- 751013 (hereinafter referred to as 'Applicant') assigned with GSTIN number 21AAACN7449M1Z9 have filed an application on 19.07.2018 under Section 97 of CGST Act, 2017, OGST Act, 2017 read with Rule 104 of CGST Rules 2017 & OGST Rules,2017 in Form GST ARA-01 seeking an advance ruling in respect of its e

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(Odisha) for production of aluminium cold rolled sheets and coils. As part of its business, it is having townships at Damanjodil Angul and residential colony at Bhubaneswar. It runs hospitals at Damanjodi and Angul for its employees. It also has guest houses for touring employees and guests. The applicant is receiving various services of repair and maintenance in the townships, guest houses, hospitals and horticulture which are received as part of its business operations. The suppliers of such services are charging GST in their invoices.
2.1 That services of management, maintenance and repair in its townships, guest houses, hospitals and horticulture are being used in the course or furtherance of the applicant's business and, therefore. it is entitled to take credit of tax paid on such services as per the provisions of central Goods and Service Tax Act, 2017.
2.2 That it serves the business interest of the applicant having its employees residing in townships and colonies near its fac

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onal Hearing was fixed on 29.08.2018 under due intimation to the applicant, the jurisdictional officer of State GST & jurisdictional officer of Central GST (intimated through their respective Commissionerate along with a copy of application and the written submission of the applicant). The applicant appeared through its Advocate (Sri .P K Sahu) and Representative( Sri P.Suna, DGM, Nalco) and the jurisdictional officer of State GST & jurisdictional officer of Central GST appeared in person. Sri P. K. Sahu, Advocate re-iterated the submissions already furnished in the annexures to the application. During personal hearing, the applicant was asked to state a) whether the applicant is into the supply of Health Service, Dwelling/Accommodation service etc b) whether maintenance of township, Guest house, Hospital for the welfare of the employees would be a supply between related parties. Since the said issues were not clarified/explained properly by the applicant the case was adjourned and nex

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hit/blocked by sub-section (2) or sub-section (5) of Section 17.
3.1 In the course of hearing Sri. Sahu, relying upon some judicial pronouncements also explained that establishing residential colony and guest houses and maintaining them was very much necessary and has direct nexus with the core business of aluminium manufacturing. On the other hand, the applicant cannot be held as the supplier of dwelling service or health service to its employees through the residential colonies, guest houses and hospitals since the facilities so provided are without any consideration receivable from the employees (beneficiaries). The facilities so provided are rather part of the CTC (Cost to the Company). It was also averred that the hospital infrastructure has been created in lieu of EIC contribution. It is thus a statutory obligation under the EIC Act discharged by establishing the hospital and maintaining the same. Thus, the services provided through establishment and maintenance of the residenti

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entitled to take input credit of tax paid on various goods and services used for maintenance of applicants's township, quest houses hospitals and horticulture for paying output tax”.
4.2 The moot issue before us is to decide and to give a ruling on whether the applicant is entitled to take input credit of tax paid on various goods and services procured for use in maintenance of the townships, guest houses, hospitals and horticulture established by the applicant. In fact, ruling on entitlement of input tax credit should be transaction specific and it should not be generalized of course, the applicant has submitted a list of contracts (56 in number as listed in Annexure-A) entered into with different suppliers of goods and services for supply in relation to maintenance of the townships, guest houses, hospitals including horticultural maintenance- At the time of hearing, it was given to understand by the applicant that the list is merely illustrative and not exhaustive meaning thereby th

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, Nalco Damanjodil Mass plantation for the 2017-19 at M&R Complex, Nalco Damanjodi and raising of seedlings for the 2015-17 at Nalco. The services listed at Sl. No.01, 02, 40, 47, 48, 49, 50 and 51 are services availed or to be availed exclusively for the residential colony. Service listed at Sl No.41 and 42 i.e. maintenance and up keeping of GET hostel and maintenance of the equipments in “Shaiia Niwas” is used partly for residential accommodation for trainee engineers and partly for the general guest house. Services listed at SI.No.52, 53,56, 43, 44, 45, and 46 are clear non-business activities. In fact the aforesaid services relate to plantation in different areas outside the business area of the applicant. This includes urban plantation in Koraput and other similar plantation activities in other areas. These are certainly not in the course of nor in furtherance of the core business of the applicant i.e. mining of bauxite, refining or manufacturing aluminum ingot. Some of the activi

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sted at Si No .03 is being availed exclusively for residential colony. Services listed at Sl No.37 and 38 are intended exclusively for the hospital and services listed at Sl No.04 and 09 are partly for residential colony and pertly for the plant area. Services listed at S! No.07 i.e. O&M of the “solid waste treatment plant” seems to be for treating the solid wastes of the plant and plant area. The service listed at Si No .08 i.e fogging operation seems to be for the residential colony. Thus, the services classified under this category are found to have been availed partly for residential colony maintenance, partly for hospital maintenance and partly for plant maintenance.
iii) Sweeping and snow removal services- Road sweeping work in Nalco Township, Sector i, ii & iii and Saheed Laksman Nayak colony, sweeping work at plant administration building, surakshya vihar, Dr Ambedkar colony. The services listed at SI No.05 is clearly for sweeping work in Nalco township i.e. for maintenance o

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nt and township at Nalco, Damanjodi, lightning maintenance of alumina plant and township at Nalco, Damanjodi, maintenance of 132 kv switchyard, grid transformer and power distribution system of at Nalco, Damanjodi. The services listed at Sl No. 11, 12, and 13 are in relation to the residential quarters. Service at SI No. 14 15 and 16 is in relation to Alumina Plant. The services listed at SI No.17, 18, 19, 21 and 22 are in relation to the Nalco township end residential colony. The service listed at Sl No.20 is in relation to the Alumina Plant. The service listed at Sl No.23 i.e. provision of drinking water at picnic spot is not at all in the course of or for the furtherance of business. The service listed at Sl No.29 is in relation to the residential colony whereas the service listed at S' No.30 i.e. lighting maintenance of Alumina Plant township at Damnajodi is partly in relation to the plant and partly in relation to the residential colony. The service listed at Si No 31 i e AMC

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Homeopathy, Urani, Aurveda, Natureopathy and Acupuncture Contract for Pharmacy outlet of Nalco Hospital, Nalco Township, M&R Complex, Damanjodi. The contracted service listed at Sl No.36 is for running the pharmacy outlet. As it appears the only activity under this will be to dispense health service by way of providing medicine mainly to the employees. This is a clear case of supply of medicine and other allied pharmaceutical items free of charge or, in other words, frees distribution of medicines.
viii) Maintenance and repair services of machinery and equipments-Maintenance of LPG system of Shaila Niwas, Transit House, Damanjodi. The said service is listed at Si No,39. As the heading suggests it is for use in the transit house and GET Hostel. Such establishments are essentially business establishment and not created for use only by the employees.
4.4. The contention of the applicant is that they are having township at Angul, Damanjodi and Bhubaneswar. They run hospitals for their

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air work of the township, guest house, hospital etc. for the following reasons.
a) The input and/or input services received by the applicant for the activities such as maintenance and repair of the townships, guest houses, hospitals and horticulture have no nexus to the manufacturing activity undertaken by the applicant. The said activities are neither relating to business nor relating to manufacture of final product and its supply. The said activities may be welfare activities undertaken while carrying on the business but to qualify as input service; the activity must have nexus with the business of the applicant. The expression “in course or furtherance of business” appearing in Section 16(1) of the GST Act refers to activities which are integrally related to the business activity and not welfare activities.
b) The activity of maintenance and repair of applicant's residential township / colony, guest house, hospitals including the horticultural activity are broadly used by the

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entation, and Mechanical Engineering activities, under works contract basis. Taken together, these are activities of repair and maintenance of immovable property like land, building and any other civil structures. Similarly, the assets contained in any guest house cover building, furniture, electrical appliances like TV, refrigerator, air conditioning machines, electrical cocking appliances, electrical fittings and lawns and gardens. The prime purpose of maintenance of guest house for touring employees is welfare. The services for repair and maintenance of building and land of any guest house are primarily done by service providers to whom jobs are awarded under works contract terms. The assets contained in any hospital or dispensary generally covers building, lawns, gardens, parking place, medical instruments, hospital beds and fittings, vehicle and ambulance, furniture, electrical appliances like refrigerator, air conditioning machines, electrical fittings etc. The hospital or dispen

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nation thereto under sub-section (5) of section 17 the tax credit on “works contract services when supplied for construction of an immovable property (other than plant and machinery) except where it is an input service for further supply of works contract service” is not allowed or blocked. Further, the tax credit on “goods or services or both received by a taxable person for construction of an immovable property (other than plant or machinery) on his own account including when such goods or services or both are used in the course or furtherance of business” is blocked. From a plain reading of the provisions of the above referred sub-clauses along with the Explanations, it reveals that the tax credit on input and/or input services received by the applicant for the referred activities are in the form of works contract service, for repairs and maintenance of various immovable property and assets, the input tax credit of which are directly restricted or blocked under specific provision un

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efit of the credit of the tax paid on the input and/or input services received for the referred purposes as per its application.
5.0 On scrutiny of the services listed by the applicant against which the present ruling has been sought, we find that the listed services are being availed for different purposes as observed in para-48 above. As per our findings, some of the services are exclusively in relation to the residential colony, some are in relation to the plant, some are in relation to the guest house and transit house, some are for use in residential colony as well as in the plant while some of the services like urban plantation, provision of drinking water at picnic spot, raising of seedling, and general plantation are neither for the plant nor for the residential colony. The applicant might be doing those activities while discharging some obligation but such activities are not for or in relation to the core business. Some other activities like contract for running a pharmacy o

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17 by the CBIC, it was clarified that perquisites provided to employees in terms of employment contract are not chargeable to GST. In the said press release it was also clarified that gifts of value exceeding Rs. 50,000/- by the employer to an employee will constitute a supply chargeable to GST. Conversely, in Para I of Schedule III of the Act, it has been made clear that service by an employee to the employer in the course of or in relation to his employment is neither a supply of goods nor a supply of service. There is no converse provision i.e. services provided by an employer to the employees in Schedule III implying thereby services provided by an employer to its employees are supply of services. Possibly, for this confusion, the clarification dated 10th July, 2017 was warranted to clarify that perquisite provided by an employer to an employee in terms of the employment contracts are not chargeable to GST. On the other hand, as per the provisions in Schedule I Para 2 read with the

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residential colony shall not qualify for input tax credit in terms of Sub-section 2 of Section 17. Detailed observation in respect of each work order issued by the applicant for availing different services has been made in para-4.3.
5.1 Establishment of hospitals and maintenance thereof may be for discharging the statutory obligation under the ESI Act by the employer, but dispensing medical service to the employees and others is a supply of service by the employer (the applicant in this case). Such service being nil rated will fall under exempt supplies. Consequently, the inputs and input services received by the applicant for dispensing the exempt service will not qualify for input tax credit in terms of Section 17 (2) of the OGST/CGST Act. It is made clear that the ruling to be issued is based on the current provisions of law. For the sake of further clarification we consider it appropriate to discuss the amendment of Section 17 (5) as brought in the CGST (Amendment) Act, 201 8(yet

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guest houses including landscaping by way of gardening or otherwise is neither a perquisite nor a statutory obligation. It is purely for providing accommodation service to guests including employees on tour. This is in fact a business requirement to maintain such facilities and accordingly the applicant is entitled to input tax credit of the tax paid on inward supply of input and input services for maintenance of the guest house, transit house, and training hostels, but excluding the food and beverages provided in such establishments. Credit of such input services are as such blocked in clause b of Sub section 5 of section 17 of the OGST and CGST Act. In the case of the applicant, the listed services do not contain any catering service, but the application seeks for a ruling even on such service, It is further clarified that, the applicant might not be charging anything from the guest or the trainees for providing food and beverages in the guest houses and training hostels and in such

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esidential colony and in turn part of the perquisite provided to the employees. Services availed in relation to the plants and garden in the residential colony will not qualify for input tax credit for the reasons discussed in para 5.0. It was also found that the plantation and maintenance of gardens are undertaken within plant area and other business establishments like administrative building and guest houses. Services availed in relation to plantation and gardening within the plant area including mining area and the premises of other business establishment as mentioned above will qualify for input service credit Observations on specific contracts as listed in Annexure-A have been made in Para 4.3,
5.4 We have gone through the various judicial pronouncements cited by the applicant in support of his claim. With great respect to the principles of law laid down in those decisions rendered in peculiar facts and circumstances of each case. we have no hesitation to say that the facts of t

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Description
1.
ENERGY METER READING OF RESIDENTIAL QUARTERS AT NALCO TOWNSHIP, DAMANJODI
Sushanta Engineers
1552
998599
Other support services n.e.c.
2.
ENERGY METER READING OF RESIDENTIAL QUATERS AT NALCO, DAMANJODI
ENGINEERS ENTERPRISE
1140
998599
Other support services n.e.c.
3.
DOOR TO DOOR GARBAGE COLLECTION & DISPOSAL AT DESIGNATED PLACE
Green Circle Environment Pvt. Ltd.
1500
999423
General waste collection services, residential
4.
FOGGING OPRN TO CONTROL MOSQUITOES AND ERADICATE LARVA IN PLANT & TOWNSHIP, NALCO, DMNJ
Pest Masters (India) Pvt. Ltd.
1225
999459
Other sanitation services n.e.c.
5.
ROAD SWEEPING WORK IN NALCO TOWNSHIP, SECTORS-I, II & III, & SAHEED LAXMAN NAYAK COLONY
D.N. Patra
1494
999451
Sweeping and snow removal services
6.
ROAD SWEEPING WORK IN PLANT ADMN. BUILDING, SURAKSHYA VIHAR, DR. AMBEDKAR COLONY
Anadi Lamta
1495
999451
Sweeping and snow removal services
7.
OPERATION AND MAINTENANCE OF SOLID WASTE TREATMENT PLANT AT

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nance or remodelling of the buildings covered above
13.
R & M OF TARFELTING, ROOF TREATMENT AND ALLIED WORKS IN QUARTERS AND PUBLIC BUILDINGS
B.D. Nayak
1344
995419
Services involving Repair, alterations, additions, replacements, renovation, maintenance or remodelling of the buildings covered above.
14.
REPAIR & MAINTENANCE OF TARFELTING, ROOF TREATMENT AND ALLIED WORKS IN ALUMINA PLANT
P.C. Sahu
1480
995419
Services involving Repair, alterations, additions, replacements, renovation, maintenance or remodelling of the buildings covered above
15.
DESILTING OF DRAINS & BERMS DRESSING INSIDE NALCO AR AND CISF ESTB. AT NALCO, DMNJ
Judhister Dalai
1312
995419
Services involving Repair, alterations, additions, replacements, renovation, maintenance or remodelling of the buildings covered above.
16.
DESILTING OF DRAINS AND BERMS DRESSING INSIDE NALCO AR AND CISF ESTB. AT NALCO, DMNJ
Anadi Lamta
1313
995419
Services involving Repair, alterations, additions, replacements,

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tion, maintenance or remodelling of the buildings covered above
21.
R & M AND OTHER ALLIED CIVIL WORKS IN RESIDENTIAL & PUBLIC BUILDINGS NALCO TOWNSHIP
M.H. ZAMAN
1522
995419
Services involving Repair, alterations, additions, replacements, renovation, maintenance or remodelling of the buildings covered above
22.
R & M AND OTHER ALLIED CIVIL WORKS IN RESIDENTIAL & PUBLIC BUILDINGS NALCO TOWNSHIP
AMULYA CONSTRUC-TION
1523
995419
Services involving Repair, alterations, additions, replacements, renovation, maintenance or remodelling of the buildings covered above
23.
PROVISION OF DRINKING WATER SUPPLY AT PICNIC SPOT
Sadashiv Enterprises
1550
995419
Services involving Repair, alterations, additions, replacements, renovation, maintenance or remodelling of the buildings covered above
24.
PERIODICAL PAINTING FOR THE BUILDING INSIDE AR AT NALCO, DAMANJODI
Jagannath Satpathy
1219
995473
Painting services
25.
PERIODICAL PAINTING FOR THE BUILDING INSIDE AR AT NALCO, DAMAN

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ARD OF NALCO, DMNJ.
CROWN SOLAR POWER FENCING SYSTEMS
1335
995469
Services involving Repair, alterations, additions, replacements, maintenance of the installations covered above
32.
MISCELLANEOUS ELECTRICAL MAINTENANCE AT NALCO TOWNSHIP FOR SECTOR-II & SURAKHYA VIHAR
RRR Perestroika
1457
995469
Services involving Repair, alterations, additions, replacements, maintenance of the installations covered above
33.
MISCELLANEOUS ELECTRICAL MAINTENANCE AT NALCO TOWNSHIP FOR SECTOR-II & SURAKHYA VIHAR
Sushanta Engineers
1458
995469
Services involving Repair alterations, additions, replacements, maintenance of the installations covered above
34.
MAINT OF 132 KV SWITCH-YARD, GRID TRANSFORMERS & POWER DISTRIBUTION SYS OF AR, NALCO, DMNJ
RRR Perestroika
1535
995469
Services involving Repair, alterations, additions, replacements, maintenance of the installations covered above
35.
REPAIRING, REPLACEMENT, REWINDING AND OVERHAULING OF CEILING FANS OF TOWNSHIP & PLANT
SADANANDA

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taker
1213
998599
Other support services n.e.c.
41.
MAINT & CARETAKING OF GET HOSTEL AND UPKEEPING OF EQUIP & APPLIANCES IN SHAILA NIWAS
GANESWAR HOSPITALITY & SERVICES
1226
998599
Other support services n.e.c.
42.
CONTRACTS FOR CLEANING OF LINENS OF SHAILA NIWAS AND ANNEXE AT NALCO, DAMANJODI
Snowhite Tours & Travels
1264
998533
General cleaning services
43.
URBAN PLANTATION AT KORAPUT, ODISHA
Dinabondhu Majhi
1408
998614
Support services to forestry and logging
44.
URBAN PLANTATION AT KORAPUT, ODISHA
Bijaya Kumar Kuldeep
1407
998614
Support services to forestry and logging
45.
MASS PLANTATION PROGRAMME FOR THE YEAR 2015-17, AT NALCO, DAMANJODI
Bijaya Kumar Kuldeep
1211
998614
Support services to forestry and logging
46.
MASS PLANTATION PROGRAMME FOR THE YEAR 2015-17 AT NALCO, DAMANJODI
Prafulla Kumar Patnaik
1212
998614
Support services to forestry and logging
47.
BUSH CUTTING & UPROOTING OF PARTHENIUM IN ALL SECTORS OF NALCO T/S INCLUDING SV

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