Author: admin_gst

In Re: M/s. Saro Enterprises
GST
2018 (10) TMI 1048 – AUTHORITY FOR ADVANCE RULING, TAMILNADU – 2018 (18) G. S. T. L. 362 (A. A. R. – GST), [2019] 69 G S.T.R. 40 (AAR)
AUTHORITY FOR ADVANCE RULING, TAMILNADU – AAR
Dated:- 27-9-2018
ORDER No. 16/AAR/2018
GST
MS. MANASA GANGOTRI KATA AND S. VIJAYAKUMAR, MEMBER
Note : Any appeal against the advance ruling order shall be filed before the Tamil Nadu State Appellate Authority for Advance Ruling, Chennai under Sub-section (1) of Section 100 of CGST ACT/TNGST Act 2017 within 30 days from the date on which the ruling sought to be appealed against is communicated
At the outset, we would like to make it clear that the provisions of both the Central Goods and Service Tax Act and the Tamil Nadu Goods and Service Tax Act are the same except for certain provisions. Therefore, unless a mention is specifically made to such dissimilar provisions, a reference to the Central Goods and Service Tax Act would also mean a reference to

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s'. They market the trays to the end users, basically farmers as well as small dealers who further make the sale of these trays to farmers. 'Agricultural Seedling Trays' are used manually for preparing seedling and it is neither a part of any machine nor it is used with any machine/ electronically driven.
2.2 Under TNVAT the goods were exempted as 'Agricultural Implements' as per advance ruling obtained by them. Under GST, they state that the goods are agricultural implements under Chapter 8201 which is exempted as per Sl.No. 137 of Notification No 2/2017-Central Tax dt 28.06.2017 as amended.
3.1 The Authorized Representative of the Applicant was heard in the matter. They have produced profile of Company, write-up, pamphlets of the product. The goods are made up of recycled or pure poly- propylene. They have stated that the items are Agricultural implements classifiable under 8201 and used as seedling trays by farmers for transplanting seedlings. In VAT regime they are exempt as agri

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of explanation (iii) and (iv) to Notification No. 1/2017 – Central Tax (Rate) dt. 28-06-2017, tariff heading, sub-heading, heading and chapter shall mean respectively a tariff item, sub-heading, heading and chapter as specified in the First Schedule to the Customs Tariff Act, 1975 and the rules for the interpretation of the First Schedule to the Customs Tariff Act, 1975, including the Section and Chapter Notes and the General Explanatory Notes of the First Schedule shall be applied for the interpretation and classification of goods.
4.2 The Applicant claims that the goods are to be classifiable under Tariff heading 8201 Chapter 82 falls under Section XV of Customs Tariff which covers “Base Metals an articles of Base Metals”.
Section Note 3 states:
3. Throughout this Schedule, the expression “base metals” means : iron and steel, copper, nickel, aluminium, lead, zinc, tin, tungsten (wolfram), molybdenum, tantalum, magnesium, cobalt, bismuth, cadmium, titanium, zirconium, antimony, man

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base metal, of metal carbides or of cermets.
A combined reading of section and chapter notes and description of goods covered under Tariff heading 8201 reveals that the goods covered under this Section XV have to be made of base metals or should be articles of base metals. 'Base metals as per Section Note above do not include plastics'. Further, chapter 82 covering 'Tools, implements, cutlery, spoons and forks, of base metal; parts thereof of base metal' should necessarily have a blade, working edge, working surface or other working part of base metal or others as above.
The product in question is Seedling Trays made of fully of plastic i.e. polypropylene and hence it cannot be classified under chapter 82 or anywhere under Section XV and accordingly it cannot be classified under 8201 as Hand tools, such as spades, shovels, mattocks, picks, hoes, forks and rakes; axes, bill hooks and similar hewing tools; secateurs and pruners of any kind; scythes, sickles, hay knives, hedge shears,

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These trays are also compatible to various rice transplantation machinery in terms of the dimension of the seedlings mat grown, spacing between each seedling etc. The trays help in growing and transporting the seedlings in an organized, labor-saving manner so that the seedling mats grown can be fed into the machines or planted as such by hand. However, the tray itself is not a part of any machine or used with any machine or electronically driven nor is it an accessory of any agricultural machinery. Rice planting machinery do not need these seedling trays to function and hence cannot be classified as parts or accessories of agricultural machinery.
The goods are trays made of polypropylene of certain dimensions.
Chapter 39 covers Plastics and articles thereof
Chapter 3926 covers
Other articles of plastics and articles of other materials of headings 3901 to 3914
Tariff Heading 39269099 covers other articles not specified
HSN Explanatory Notes to Chapter heading 3926 states
Thi

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In Re: M/s. Jeena Exports
GST
2018 (10) TMI 1049 – AUTHORITY FOR ADVANCE RULING, TAMILNADU – 2018 (18) G. S. T. L. 311 (A. A. R. – GST)
AUTHORITY FOR ADVANCE RULING, TAMILNADU – AAR
Dated:- 27-9-2018
ORDER No. 15/AAR/2018
GST
MS. MANASA GANGOTRI KATA AND S. VIJAYAKUMAR, MEMBER
Note : Any appeal against the advance ruling order shall be filed before the Tamilnadu State Appellate Authority for Advance Ruling, Chennai under Sub-section (1) of Section 100 of CGST ACT/TNGST Act 2017 within 30 days from the date on which the ruling sought to be appealed against is communicated.
At the outset, we would like to make it clear that the provisions of both the Central Goods and Service Tax Act and the Tamil Nadu Goods and Service Tax Act are the same except for certain provisions. Therefore, unless a mention is specifically made to such dissimilar provisions, a reference to the Central Goods and Service Tax Act would also mean a reference to the same provisions under the T

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k, generally about one-third of the husk is processed into as coir fibre, whereas two-thirds of the husk is generated as coir pith. The spongy material that binds the coir fibre in the husk is the coir pith. The composition and properties of coir pith vary depending on maturity of coconut, method of extraction and disposal, period from extracting to use and environmental factors. As there is no specific GST rate for the same, rate of tax and classification was sought by the applicant, the same may be provided.
These goods were exempted in previous VAT and Excise Act. A picture of the same was enclosed with the application.
2.2 The Applicants have stated that as per the Customs Tariff Act 1975, Coir pith processed in value added form like briquette, coins, neo disc, grow bags, organic manure and in loose form for use in horticulture or agriculture is included in Chapter 5305 00 40. However, coir pith in its natural form is not included in the HSN: 5305 00 40 and hence there is no spec

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d into bales. The coir pith is compressed into blocks without adding any additional ingredients or chemicals for easy transportation for further supply. The photo submitted at the time of the application shows the coir pith before such compression is in loose powder form. It is seen from the sale invoices that the applicant is indicating the goods as “Coir Fibre Dust, Wet pith”, “Coir Pith Blocks” “Coir Pith Briquettes”
4.1 The issue to be decided is the applicable 'GST Rate' of the product of the applicant, 'Coir Pith'. Contentions of the Applicant was examined with connected records and facts. To determine the applicable rate, the goods have to be correctly classified first. It is stated by the applicant that after extraction of fibre the non -fibrous material that binds the coconut fibre in the husk is the coir pith. They compress the same without adding any chemicals into blocks. From the manufacturing process and invoices submitted by the applicants, it is seen that the goods are

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submissions of the Applicant, it is evident that the coir pith is in raw or natural form which is different from coir fibre, which is the other product extracted from the coconut husk as stated by the Applicant supplied in the form of blocks, briquette and in loose form(Dust). Therefore, the product is more appropriately covered under the Heading 53050040.
4.3 The rate of tax under GST is prescribed under Notification no. 01 / 2017- C.T. (Rate) dated 28.06.2017 as amended and the exemptions are given vide Notification No. 02/2017-C.T. (Rate) dated 28.06.2017 as amended. The entries relevant to Coir Pith/ Chapter 5305 in both these notifications are given as under:
Schedule 1 of Notification No. 01 /2017-C.T. (Rate) dated 28.06.2017:-
Sl.No.
Chapter Head
Description
Rate
215
5305 to 5308
All goods [other than coconut coir fibre] including yarn of flax, jute, other textile bast fibres, other vegetable textile fibres; paper yarn [including coir pith compost put up in unit contain

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ereafter “coir pith compost other than those put up in unit container and bearing a registered brand name/ brand name” alone is added to the exemption list.
4.4 The products in question are coir pith in raw form which is either sold as loose form or supplied by the applicant in Blocks, Briquettes form without any addition of chemicals. It is different from coir fibre. Further, the coir pith supplied by the Applicant does not undergo composting process, which would alter its composition and cannot be called as coir pith compost. Hence coir pith in its raw form whether in loose powder or compressed into blocks form are taxable at 2.5% CGST as per Sl. No 215 of Schedule I of Notification No. 01/2017-C.T.(Rate) dated 28.06.2017 as amended and at 2.5% SGST as per Sl.No. 215 of Schedule I of G.O. (Ms) No. 62 dated 29.06.2017 No. II (2)/CTR/532(d-4)/2017.
5. In view of the foregoing, we rule as under:
RULING
Coir pith in its raw form whether in loose powder or compressed into blocks form

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In Re: M/s. Adwitya Spaces Private Limited
GST
2018 (10) TMI 1050 – AUTHORITY FOR ADVANCE RULING, TAMILNADU – 2018 (18) G. S. T. L. 308 (A. A. R. – GST)
AUTHORITY FOR ADVANCE RULING, TAMILNADU – AAR
Dated:- 27-9-2018
ORDER No. 13/AAR/2018
GST
MS. MANASA GANGOTRI KATA AND S. VIJAYAKUMAR, MEMBER
Note : Any appeal against the advance ruling order shall be filed before the Tamil Nadu State Appellate Authority for Advance Ruling, Chennai under Sub-section (1) of Section 100 of CGST ACT/TNGST Act 2017 within 30 days from the date on which the ruling sought to be appealed against is communicated.
At the outset, we would like to make it clear that the provisions of both the Central Goods and Service Tax Act and the Tamil Nadu Goods and Service Tax Act are the same except for certain provisions. Therefore, unless a mention is specifically made to such dissimilar provisions, a reference to the Central Goods and Service Tax Act would also mean a reference to the same prov

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of rental income. They have let out one of the properties to M/s. Vantec Logistics India Private Limited. This letting out has been arranged by a property consultant “M/S. Catalyst Consulting Chennai”, who is registered under GST with GSTIN 33AAHFC3824B1Z2. They have raised their bill for their services to the applicant for Rs. 2,74, 21,314/- (which includes CGST& SGST). The applicant has submitted that the tax of CGST and SGST charged by M/S Catalyst consulting Chennai falls under the definition of input tax under section 2(62) of CGST Act and they have requested to clarify if input tax credit can be availed on the brokerage fees paid to the property consultant. They have stated that the tax of CGST & SGST paid by them on brokerage charges falls under “input tax” under Section 2(62) of CGST Act and is not covered under any restrictions under Section 17 (5) (c) or (d) and hence are eligible to take input tax credit.
3.1 The Authorised Representative of the applicant was heard in the m

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M/S. Vantec Logistics India Private Limited including furniture, fittings and fixtures for which rent is to be paid to the applicant. This was made possible by the services of Catalyst Consulting. There is no purchase order/ contract between the applicant and Catalyst Consulting. The applicant states that Catalyst Consulting identified the leasee through online advertisement. However, an invoice C-007/ 17-18 dt. 20.12.2017 was raised by Catalyst Consulting towards Brokerage charges for warehouse building leased to M/s. Vantec logistics India Private Limited with SAC 997221 of value Rs. 2,32,38,402.00 in which CGST at 9% and SGST at 9% was charged to the applicant. GSTR 3B and GSTR-1 was filed by M/s. Catalyst Consulting Chennai for the month of December 2017 for the amount and screenshots of GSTR 2A of the applicant indicate this transaction is reflecting in the inward supplies.
4.1 The issue before us is to decide on the admissibility of input tax credit of tax paid to M/s. Catalyst

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or both made to him and includes-
a) Integrated goods and service tax on import of goods;
b) Tax payable under the provision of sub section (3) & (4) of Section 9.
c) Tax payable under the provision of sub section (3) & (4) of Section 5 of Integrated goods and service tax Act.
d) Tax payable under the provision of sub section (3) & (4) of Section 9 of respective State goods and service tax Act; or
e) Tar payable under the provision of sub section (3) & (4) of Section 7 of the Union territory goods and service tax Act.
But does not include tax paid under the composition levy.
Section 16 (1) of the Act provides for the Eligibility and conditions for taking input credit, as follows:
16. (1) Every registered person shall, subject to such conditions and restrictions as may be prescribed and in the manner specified in section 49, be entitled to take credit of input tax charged on any supply of goods or services or both to him which are used or intended to be used in the c

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he supplier the amount within a period of 180 days. Section 16(4) states that the recipient(applicant) shall not be entitled to take input tax credit after the due date of furnishing return for September following the end of financial year or annual return whichever is earlier. Similarly, Section 17 and Section 18 impose certain conditions on availment of input tax credit. Therefore, the applicant eligible to take credit of the CGST & SGST charged by M/S. Catalyst Consulting in the Tax invoice No. C- 007/17-18 dated 20-Dec-17 raised on the applicant for real estate brokerage services for renting of property on a fee basis rendered by Catalyst Consulting, subject to the conditions as per Section 16, 17 and 18 of CGST & SGST Act.
5. In view of the foregoing, we rule as under:
RULING
The applicant is eligible to take credit of the CGST & SGST charged by M/s. Catalyst Consulting Chennai in the Tax invoice No. C-007/17-18 dated 20.12.2017 raised on the applicant for real estate brokerage

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In Re: Kanniwadi Nagarajan Sharmila (Prop: M/s. Sharmila Screen Printers)
GST
2018 (10) TMI 1051 – AUTHORITY FOR ADVANCE RULING, TAMILNADU – 2018 (18) G. S. T. L. 324 (A. A. R. – GST)
AUTHORITY FOR ADVANCE RULING, TAMILNADU – AAR
Dated:- 27-9-2018
ORDER No. 12/AAR/2018
GST
MS. MANASA GANGOTRI KATA AND S. VIJAYAKUMAR, MEMBER
Note: Any appeal against the advance ruling order shall be filed before the Tamil Nadu State Appellate Authority for Advance Ruling, Chennai under Sub-section (1) of Section 100 of CGST ACT/TNGST Act 2017 within 30 days from the date on which the ruling sought to be appealed against is communicated.
At the outset, we would like to make it clear that the provisions of both the Central Goods and Service Tax Act and the Tamil Nadu Goods and Service Tax Act are the same except for certain provisions. Therefore, unless a mention is specifically made to such dissimilar provisions, a reference to the Central Goods and Service Tax Act would also mean

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ade some announcement that these bags fall under HSN Code 6305 are liable to be taxed at 5% if the sale value falls below Rs. 1000/-. For the value of more than Rs. 1000, it is liable to be taxed at 12%, but the GST Act schedule does not speak about that and the HSN Code 6305 is missing while introducing the GST Act.
2.2 The Applicant have further stated that their association approached the GST & Central Excise department at Madurai and requested to clarify the rate of tax on the Nonwoven Bags. The department vide letter No. IV/ 16/84/2017 – Tech (GST) Vol-1 dated 01.01.2018 addressed to their association had clarified that Nonwoven Bags & Rice Bags falls under HSN Code “63059000- Other made up textile articles, sets, worn cloths and woven textile articles” and liable to be taxed at 5% GST if the sale Value does not Exceed Rs. 1000/- Vide Sl.No.224 of schedule 1 of Notification 1/2017 C Tax (Rate) dated 28.06.2017.
3.1 The Applicant was heard in person. They submitted Photos of raw

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lour, cutting into desired sizes and printing on it based on various designs, logos required by their clients. They are then stiched into bags and sold to their clients.
4.1 The issue for decision before us is the appropriate Rate of Tax and HSN code for Nonwoven Rice Bags manufactured by the applicant. From the various submissions of the applicant, it is evident that the applicant purchases non-woven fabric roll, convert into sheets by cutting and on printing, stitch into bags which are used mainly for packing rice and food products. They have further stated that their product non woven fabric bags of various sizes falls below Rs. 1000 each.
4.2 In terms of explanation (iii) and (iv) to Notification No. 1 / 2017 – Central Tax (Rate) dt. 28-06-2017, tariff heading, sub-heading, heading and chapter shall mean respectively a tariff item, sub-heading, heading and chapter as specified in the First Schedule to the Customs Tariff Act, 1975 and the rules for the interpretation of the First

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;                            – Of man-made textile materials :
6305.32                Flexible intermediate bulk containers
6305.33                 Other, of polyethylene or polypropylene strip or the like
6305.39                 Other
6305.90                –  Of other textile materials
This heading covers textile sacks and bags of a kind normally used for the packing of goods for transport, storage or sale.
The applicant manufactures non-woven fabric bags which is used mainly for packing rice and food products and the product made of 100% polypropylene fibe

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In Re: M/s. Sodexo Food Solutions India Private Limited
GST
2018 (10) TMI 1052 – AUTHORITY FOR ADVANCE RULING, TAMILNADU – TMI
AUTHORITY FOR ADVANCE RULING, TAMILNADU – AAR
Dated:- 27-9-2018
11/AAR/2018
GST
Ms. Manasa Gangotri Kata, Member, And Thiru S. Vijayakumar, Member
ORDER
Note: Any appeal against the advance ruling order shall be filed before the Tamil Nadu State Appellate Authority for Advance Ruling, Chennai under Sub-section (1) of Section 100 of CGST ACT/TNGST Act 2017 within 30 days from the date on which the ruling sought to be appealed against is communicated
At the outset, we would like to make it clear that the provisions of both the Central Goods and Service Tax Act and the Tamil Nadu Goods and Service Tax Act are the same except for certain provisions. Therefore, unless a mention is specifically made to such dissimilar provisions, a reference to the Central Goods and Service Tax Act would also mean a reference to the same provisions under the

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egal entities, Sodexo Foods Solutions India Private Limited (hereinafter referred to as applicant), Sodexo Facilities Management Services India Private Limited, and Sodexo Technical Services India Private Limited (collectively referred to as 'Sodexo India). Sodexo is interalia engaged in providing the following services:
* B2B contracts with corporate customers for operation and management of canteens, cafeteria's at their premises, wherein sodexo provides the services of cooking, preparing, serving of food and beverages at the premises of the customer; The consideration for services is charged to the corporate customers on a per plate basis; The contracts are for providing services on an ongoing basis for an agreed duration which could range from 1 years to 5 years, depending on the terms agreed with the corporate customer on a case to case basis.
* Retail services of cooking and serving food and beverages by canteens, cafeteria, etc. wherein Sodexo is engaged in sale of f

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er 2017, entry no. 7 (i), there has been a change in the GST rate from 18% to 5% with effective from 15th November 2017, in respect of supply of food and / or beverages by restaurant, eating joint including mess, canteen other than those located in the premises of having rooms with declared tariff of Rs. 7,500 per day or more. Accordingly, the implication of such amendment in the GST rate for services provided by a restaurant, eating joint, including mess canteen which do not have rooms with declared tariff of Rs. 7,500 or more per day has been reduced to 5% (with no input tax credit to the service provider). Further, the CBEC (TRU) has issued circular no. 28/02/2018-GST dated 8th January 2018 stating that a canteen of an educational institution which supplies food and beverages to students and staff should be covered under 5% GST rate, even if the canteen is outsourced to an outside contractor. Further, by way of a corrigendum to this dated 18 January 2018. the CBEC (TRU) has clarifie

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rants, eating joints, mess and canteens and the 18% GST rate for outdoor catering services seems to be simultaneously prescribed. Especially when the customers are not entitled to avail ITC of the GST charged by Sodexo, the clients are insisting that since the services are provided in canteens the appropriate rate of tax is 5%. Sodexo has a huge interest in knowing the correctness of the rate to be charged since GST is a pass through tax and the differential of 13% if not received from clients could spell disaster for the company.
2.3 Sodexo have further stated that, in the normal course, “outdoor catering” means ordering of food along with service thereof on the occasion of some function etc, where the service provider would either bring the food and serve it at the customer's premises or prepare the food itself at the customer's premises and serve the same; Outdoor catering does not contemplate any continuous provision of service, but an occasional transaction whereas the te

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idered as a case of sale of food and drink as in restaurant”.
2.4 Sodexo have further stated that on examining the classification of Food Services under the General Tariff Schedule under GST, it can be seen that Group 99633 deal with Food, Edible Preparations, Alcoholic and Non-alcoholic beverages serving services.; There are 8 sub categories under this group.; The First set comprising of 996331 to 996333 deal with services provided by Restaurants, café's, eating facilities including take away, room services and door deliver; Hotel, Inn, guest house, club and the like; canteen and other similar establishments.; These three sub entries feature food services dispensed on a regular basis from a fixed location where food is prepared and served.; It also includes services where food is prepared and served for a defined end use such as room services or door delivery. For the sake of convenience, sodexo defines this sub rule as indoor catering.; Sub entries 996331 to 996333 uses t

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f appears to have clarity and even an unintended overlap stands avoided. It is a well settled principle of interpretation that in case of competing entries, specific would prevail over general and consequently canteen even if held to be outdoor caterer would continue to fall under 7 (i) instead of getting it consigned to 7 (v) of the Notification.
2.5 GST rate of 5% extended to Educational Institutions vide Circular of 8 Jan 2018 is violative of Article 301 of the Constitution of India. Circular No. 28/02/2018-GS'I' dated 8th January 2018 read with Corrigendum issued on 18th January 2018 has clarified that GST shall be applicable at 5% under entry 7 (i) on supply of food and drink in a mess or canteen, by anyone other than educational institution to the concerned educational institution. The entry 7 (i) covers supply of food and beverages by all types of canteens. Given that there is no differentiation in the taxable entry 7 (i) for canteens of educational institutions and can

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claimed that in view of the above, it would be critical to clarify that supply of food and beverages in factory canteens, offices, hospitals, offshore rigs by services providers such as Sodexo should also attract 5% GST so that there is no discrimination in the GST tax structure for supply of food and drinks in the normal course of trade, commerce and intercourse across the territory of India.
3.0 The applicant was heard in person. They stated that they have contracts with various institutions.; they have contracts with them for making food at client premises; in certain cases, the payment is received from visitors to premises, in other cases payment is received only from the institutions. They provided a write-up and undertook to provide contract copies. The applicant furnished contract copies and invoices. The details and documents furnished were examined.
4.0 The applicant vide their letter dated 14/08/2018 have stated that the Government have issued Notification No. 13/2018-Cent

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In Re: M/s. WABCO India Limited
GST
2018 (10) TMI 1053 – AUTHORITY FOR ADVANCE RULING, TAMILNADU – 2018 (18) G. S. T. L. 560 (A. A. R. – GST)
AUTHORITY FOR ADVANCE RULING, TAMILNADU – AAR
Dated:- 27-9-2018
ORDER No. 10/AAR/2018
GST
MS. MANASA GANGOTRI KATA AND S. VIJAYAKUMAR, MEMBER
Note : Any appeal against the advance ruling order shall be filed before the Tamilnadu State Appellate Authority for Advance Ruling, Chennai under Sub-section (1) of Section 100 of CGST ACT/TNGST Act 2017 within 30 days from the date on which the ruling sought to be appealed against is communicated.
At the outset, we would like to make it clear that the provisions of both the Central Goods and Service Tax Act and the Tamil Nadu Goods and Service Tax Act are the same except for certain provisions. Therefore, unless a mention is specifically made to such dissimilar provisions, a reference to the Central Goods and Service Tax Act would also mean a reference to the same provisions under

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(Rate) dated 28 June 2017 read with 41/2017 -Central tax (Rate) dated 14th November 2017 is 9% ?
2.Whether the said rate of Central tax of 9 0/0 is applicable to the above product with effect from 1st July 2017?
2.0 WABCO has stated that they are engaged in manufacture of brake systems and related parts for heavy vehicles such as trucks, bus and other such commercial vehicles. The Electrical Wiring Harness is primarily an electrical wire with connectors at both ends and this product, manufactured by the applicant, is supplied to automobile manufacturers for applications in Anti-skid Braking Systems (ABS) in heavy vehicles. The Electrical Wiring Harness consists of Connectors & accessories, Wires & Cables, Tapes – Flame retardant (FR) grade for Wiring Harness applications, corrugated tubes – Flame retardant (FR) grade for Wiring Harness applications and are used to distribute the electrical energy from one point to another. The Applicant manufactures the wiring harness following the

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The supply has been made under invoices with CGST of 14% as per Sl no 161 of Schedule IV of Notification No 1/2017 as “insulated (including enameled or anodized) wire, cable and other insulated electrical conductors whether or not fitted with connectors(other than winding wires, coaxial cables, optical fibers” and with the amendment of Notification noel effective from 14th November 2017, the customers have been demanding the Applicant to charge CGST on above product at the rate of 9% as per sl.no 395 of Schedule III of Notification No 1/2017 and insisting on credit note for the differential tax charged in the past transactions (From 1 July, 2017 to 13th November,2017). Out of abundant caution, the Applicant continued to charge CGST on such products at the rate of 14% and deposited the amount with the Government. The intention of legislature was to treat 8544 as single entry as is evident from amendment and hence Electrical Wiring Harness attracted 9% CGST under Notification No 1/2017 e

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t have been examined. It is seen that a wiring harness is a set of wires, terminals and connectors that run throughout entire vehicle and relay information and electric power used in starting engine, lights, meters, power windows, doors, brakes and other devices in the vehicle. The wiring harness are made up of connectors, wires, cables, flame retardant tapes and corrugated tubes. This product is specifically used in Anti-lock braking system. The major customers are Tata Motors Limited & Ashok Leyland Ltd along with after-market sales to wholesalers & retailers. Sample invoices provided indicate that the product is being sold under the description “Electrical Wiring Harness” under HSN 8708 and 8544.
5. The question raised before us is Whether the Electrical Wiring Harness, primarily an electrical wire with connectors at both ends, manufactured by the Applicant falls under HSN tariff item 8544 for which the rate prescribed vide Notification No. 01/2017 – Central Tax (Rate) dated 28th J

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interpretation of the First Schedule to the Customs Tariff Act, 1975, including the Section and Chapter Notes and the General Explanatory Notes of the First Schedule shall be applied for the interpretation and classification of goods.
General Notes to HSN Explanatory Notes to chapter 85 states:
This Chapter covers:
(7) certain articles and materials which are used in electrical apparatus and equipment because of their conducting or insulating properties, such as insulated electric wire and assemblies, thereof (heading 85.44)
Chapter Heading 8544 of Customs Tariff is as follows:
Insulated (including enameled or anodized) wire, cable (including co-axial cable) and other insulated electric conductors, whether or not fitted with connectors; optical fibre cables, made up of individually sheathed fibres, whether or not assembled tvith electric conductors or fitted with connectors
And more specifically, 85443000, states as follows:
Ignition wiring sets and other wiring sets of a kind

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“parts and accessories” do not apply to the following articles, whether or not they are identifiable as for the goods of this Section:
(f) Electrical machinery or equipment (Chapter 85);
Further, as per the explanations to Section XVII in HSN, the parts and accessories of the vehicles falling under this chapter, will merit classification under this chapter only if the same satisfies the three conditions as below:
From the above, it is evident that insulated electrical wire and cable including wiring sets fitted with terminals or not of headings 8544 stands excluded as per Note 2 to Section XVII. Also, condition (c) is not satisfied in as much as wiring sets of a kind used in vehicles is specifically stated under 85443000. In view of the above, we find that the Electrical Wiring Harness manufactured by the applicant falls under the HSN tariff item 85443000. It is seen that Circular 25/88 Cx dated 17.11.1988 issued by CBEC has held that wiring harness are classifiable under 8544.
5

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/2017-C.T.(Rate) dated 28.06.2017 and G.O. (Ms) No. 62 dated 29.06.2017 No. Il(2)/CTR/532(d-4)/2017 and is subject to tax at the rate of 14% CGST and 14% SGST. The said Notification is amended as per Notification No. 41/2017- C.T.(Rate) dated 14th November 2017 and G.O. (Ms) No. 157, dated 14.11.2017 by which the Entry at SI.No. 161 of Schedule IV was omitted and the entry at SLNo. 395 of Schedule III was modified as follows:
“Insulated (including enameled or anodized) wire, cable (including co-axial cable) and other insulated electric conductors, whether or not fitted with connectors; optical fibre cables, made up of individually sheathed fibres, whether or not assembled with electric conductors or fitted with connectors”
These amendments were made effective from 15.11.2017.
From the above, it is clear that the 'Electrical Wiring Harness manufactured by the Applicant, was subjected to tax @ 14% CGST and 14% SGST for the period from 01.07.2017 to 14.11.2017 and thereon, the tax rate

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In Re : M/s. Takko Holding GmbH
GST
2018 (10) TMI 1315 – AUTHORITY FOR ADVANCE RULINGS, TAMIL NADU – 2018 (19) G. S. T. L. 692 (A. A. R. – GST)
AUTHORITY FOR ADVANCE RULINGS, TAMIL NADU – AAR
Dated:- 27-9-2018
ORDER No. 14/AAR/2018
GST
Ms. Manasa Gangotri Kata, IRS, Member, CGST And Shri. S. Vijayakumar M.Sc., Member (FAC),TNGST
RULING
At the outset, we would like to make it clear that the provisions of both the Central Goods and Services Tax Act and the Tamil Nadu Goods and Services Tax Act are the same except for certain provisions. Therefore, unless a mention is specifically made to such dissimilar provisions, a reference to the Central Goods and Services Tax Act would also mean a reference to the same provisions under the Tamil Nadu Goods and Services Tax Act.
Takko Holding GmbH is a company incorporated in Germany. They are permitted by RBI to have a Liaison Office of the company at 1/1 J-16, Thannerpandal Colony, Avinashi Road, Anupparpalayam, Tirupur-64

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from/to India
 (3)     Promoting technical/financial collaborations between parent/group companies and companies in India
 (4)     Acting as communication channel between the parent company and Indian companies (supplier of goods to parent company at Germany)
Out of the above activities allowed, Takko is performing only one activity – Acting as communication channel between the parent company located outside India and Indian companies. Except the proposed liaison work, the office in India, not to undertake any activity of trading, commercial or industrial nature nor they enter into any business contract in their own name without prior permission. No commission/fees be charged or any other remuneration received/income earned by the office in India for the liaison activities/services rendered by it or otherwise in India.
2.2 The activities of Takko are :
 (1)     Order enquiries are received from Germ

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and send the final documents to German office through the respective supplier after effecting the shipment;
 (7)     Admin Department coordinates for the overall administration of Takko;
 (8)     All the administrative expenses are met by the German office, (i.e. as per RBI instruction in their approval; the entire expenses of the office in India is met exclusively out of the funds received from abroad through normal banking channels).
2.3 They have stated that under GST supply includes all forms of suppiy made for a consideration by a person in course or furtherance of business. For activity of Liaison office, no consideration is being received. The Liaison office is maintained by inward remittances from German office to meet expenses. Hence, activities are not a supply. It will not come under S1. No. 2 of Schedule I as services without consideration from related persons or distinct persons as German Office and Liaison Office are

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s the Indian Supplier; there are no furtherance of business, no consideration and no supply as per GST; there are no foreign consultants of the liaison office. Takko further furnished documents relating to the details of order placement, procurement, quality checking activities along with documentary support; sample Invoice for ordcr placcd with the manufacturer; RBI Permission letter; Statement of Accounts & Income-Tax Returns, Inward Remittance Report and sample invoices for the expenditure, appointment letter and Payment document of any one employee, detailed write -up of activities.
3.2 All documents submitted by the applicant were examined. It is seen that RBI has permitted M/s Takko Holding GmBH, Germany to establish a Liaison Office in Tirupur, Tamil Nadu as they are engaged in trading of clothing & textiles and operates clothes shops and markets. The Liaison office has been permitted to undertake only the limited set of activities as listed in para 2.I above. No other activiti

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arments as per the order sheet received in terms of the design, sampling, quality assurance checks, and audit after production. They also coordinate with the supplier for shipping the goods. The purchase orders for procurement of readymade garments are raised only by the German office on the suppliers in India and Letter of Credit is opened by the German office to the supplier's Bank who raises invoices on the German Office and exports the goods. Takko do not receive any consideration from the Indian exporters. The advance ruling is sought on Whether liaison office is liable to pay GST? whether a liaison office is required to be registered under GST Act? Whether the Activities of a liaison office amount to supply of services?
4.1  The advance ruling is sought on
1. Whether liaison office is liable to pay GST?
2. Whether a liaison office is required to be registered under GST Act?
3. Whether the Activities of a liaison office amount to supply of services?
The above ques

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eceived/ income being earned by the office in India for the liaison activities/ services rendered by it. The HO, reimburses the expenses incurred by Takko for their operations in India which are in the nature of salary, rent, security, electricity, travelling etc. They do not have any other source of income. Further the liaison office is strictly prohibited to undertake any activity of trading, commercial or industrial nature or entering into any business contracts in its own name.
4.3 In order to be a supply liable to GST, an activity has to fall under Section 7 of the CGST Act, 2017 which reads as under:
7 . (1) for the purposes of this Act. The expression “srtpplg” includes-
(a) all forms of supplg of goods or seruices or both such as sale, transfer, barter, exchange, licence, renta| Iease or disposal made or agreed to be made for a consideration bA a person in the course or furtherance of business:
(b) import of seruices for a consideration whether or not in the course or

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Sh. Jijrushu N. Bhattacharya And Director General Anti-Profiteering, Central Board of Indirect Taxes & Customs, New Delhi Versus M/s. NP Foods (Franchisee M/s Subway India)
GST
2018 (10) TMI 1338 – NATIONAL ANTI-PROFITEERING AUTHORITY – 2018 (17) G. S. T. L. 627 (N. A. P. A.)
NATIONAL ANTI-PROFITEERING AUTHORITY – NAPA
Dated:- 27-9-2018
Case No. 9/2018
GST
Sh. B. N. Sharma, Chairman, Sh. J. C. Chauhan, Technical Member And Ms. R. Bhagyadevi, Technical Member
For The Applicant : Sh. Akshat Aggarwal Assistant Commissioner and Sh. Bhupender Goyal, Assistant Director (Costs)
For The Respondent : Sh. Smit P. Shah
ORDER
1. The present Report dated 1 1.05.2018 has been received from the Director General of Safeguards (DGSG) now Director General Anti-Profiteering (DGAP) after detailed investigation under Rule 129 (6) of the Central Goods & Services Tax (CGST) Rules, 2017. The brief facts of the case are that an application dated 01.01.2018 was filed by the Applicant N

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after reduction in the rate of tax. The Respondent had submitted replies vide e-mails dated 09.03.2018, 17.03.2018, 06.04.2018 and 01.05.2018 and stated that the Government of India had disallowed Input Tax Credit (ITC) on the purchase of material used in the restaurant service w.e.f. 15.11.2017 and hence he had increased the base price of his products after the change in the GST rate from 18% with ITC to 5% without ITC. He had also submitted copies of the bills, audited balance sheet, GSTR-I & GSTR-3b and sales register in support of his contention.
4. The DGAP has confirmed in his report that the rate of GST on the restaurant service had been reduced from 18% to 5% with the condition that ITC on the goods and services used in supplying the service will not be allowed vide Notification No. 46/2017-Central Tax (Rate) dated 14.1 1.2017 with effect from 15.11.2017. The DGAP has also stated that on scrutiny of the GSTR-I, GSTR-3b and the ITC Register submitted by the Respondent, it was o

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average output taxable value (base price) by 12.14% to neutralize the denial of ITC of 11.80%. The DGAP has further submitted that the Respondent had sold 32 number of different items on 14.11.2017 in one of his outlets at Karelibaug at the increased base prices and collected Rs. 452/-, where he had actually charged 18% GST on the said items. He has also contended that this was evidently done to compensate for the denial of ITC that was to take place one day later w.e.f. 15.11.2017. The DGAP has also intimated that the increase in the base prices of the products sold by the Respondent on 14.11.2017 on account of denial of ITC was unjust as the ITC was available to him on 14.1 1.2017 since the GST rate was reduced from 18% to 5% and the ITC was denied on the restaurant service supplied by the Respondent only w.e.f. 15.11.2017. He has further intimated that the Respondent had increased the base price to include the cost of input tax and also subjected the customers to GST at the higher

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licant on 29.05.2018 however, the Applicant did not appear during the course of the hearings. M/S Subway Systems India Private Limited the owners of the 'Subway' Brand which had appointed the Respondent as it's franchisee were also associated during the hearings. S/Sh. Nihal Kothari and Mayank Jain Advocates who appeared on behalf of M/S Sunway submitted that it worked on the franchisee based model, and no consideration was taken from the franchisee expect the royalty on the net turnover. They also submitted that M/S Subway was not involved in fixing of the price of the products and it was solely the call of the franchisee to fix the prices of the products. They further submitted that no ITC was being passed on by M/S Subway as the franchisee was free to buy the raw material from the local sources. They also stated that only the ingredients and the products to be served were decided by M/S Subway.
6. The DGAP was also asked to file reply on the ITC aspect of the pre and po

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alleged to have been charged from the customers on 14.1 1.2018 in the DGAP's Report was due to the system error in the night of 14.11.2018 and the Respondent had no intention of overcharging. He also submitted that he had increased the rates due to denial of ITC and the Report had not alleged any profiteering on his behalf and hence the present proceedings should be dropped.
8. We have carefully heard both the parties and have also considered the  material placed before us and following two points pertaining to the allegation of profiteering made against the Respondent need to be decided as per the provisions of Sec. 171 of the CGST Ac, 2017:-
i. Whether there was reduction in the rate of tax on the restaurant service after 14.11.2017 and whether the benefit as emanating from such reduced tax rate has not been passed to the Applicant No. 1 in terms of the commensurate reduction in the price of the product purchased by him?
ii. Whether profiteering of Rs. 452/- was made by

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the Respondent had increased the average base price by 12.14% to neutralize the denial of ITC of 11.80% and such increase is commensurate with the increase in the cost of the product on account of denial of ITC. Therefore, the allegation of not passing on the benefit of rate reduction is not established against the Respondent. As far as the issue of profiteering of Rs. 452/- made on the supply of the products on 14.1 1.2017 is concerned the same can not be termed as profiteering in terms of section 171 of CGST Act, 2017 as there was no rate reduction on 14.11.2017 as the same had occurred w.e.f. 15.11.2017 only.
10. Based on the above facts it is clear that the Respondent has not contravened the provisions of Section 171 of the CGST Act, 2017 and hence there is no merit in the application filed by the Applicant No. 1 and the same is accordingly dismissed. A copy of this order be sent to both the Applicants and the Respondent free of cost. File of the case be consigned after completion

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State Bank of Hyderabad Versus CCT, Hyderabad – GST
Service Tax
2018 (11) TMI 173 – CESTAT HYDERABAD – 2018 (19) G. S. T. L. 645 (Tri. – Hyd.)
CESTAT HYDERABAD – AT
Dated:- 27-9-2018
Appeal No. ST/601/2009 – A/31243/2018
Service Tax
Mr. M.V. Ravindran, Member (Judicial) And Mr. P. Venkata Subba Rao, Member (Technical)
Shri S. Ananthan, CA (Rep.) for the Appellant.
Shri V.R. Pavan Kumar, Superintendent/AR for the Respondent.
ORDER
Per: P.V. Subba Rao.
1. The appellant is a Public Sector Bank with Head Quarters in Hyderabad and is engaged in the provision of banking services. They have opted for centralized registration and are registered with the Central Excise and Customs, Hyderabad-III Commissionerate for payment of service tax in respect of merchant banking services. The Director General of Central Excise Intelligence conducted investigation and found that the appellant has been rendering services and receiving amounts in respect of the following:
(i) C

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s and therefore, no service tax liability accrues to the Head Office and the show cause notice was issued without jurisdiction.
3. After following due process of law, the learned Commissioner confirmed the demands as per the show cause notice and also confirmed recovery of interest. He further imposed penalties under Sec. 76, 77 & 78 of the Finance Act, 1994. Aggrieved by the impugned order this appeal has been filed by the appellant on the following grounds:
(a) The show cause notice covering entire period is beyond the scope of Sec. 73 as the department was fully aware of the facts and activities of the appellant for over one year prior to the issue of show cause notice.
(b) There is nothing on record to show that bank suppressed the information with an intention to evade tax.
(c) The show cause notice was issued without jurisdiction to the head office of the appellant bank.
(d) Learned Commissioner erred in confirming the demand on the appellant bank without jurisdiction.
(e)

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se notice. Collection of taxes and sale of Government of India Bonds are sovereign functions and are not taxable. He further argued that the credit card services became taxable only w.e.f. 01.05.2006 and hence they are not liable to tax during the relevant period. Collection of taxes being a sovereign function and not a service, is not liable to service tax.
5. Learned departmental representative reiterated the arguments made in the Order-in-Original. He would argue that the services rendered by the appellant are squarely covered by the definition of 'business auxiliary services' being in the nature of promoting and marketing services provided to their clients.
6. We have considered the arguments on both sides and perused the records. The short points to be decided are as follows:
1) Whether service tax is chargeable during the relevant period on
a. Collection of taxes for the Central Government and the Government of State and the commission received for such collection from those

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ion the appellant cannot now argue that their head office has no role in providing the services and hence cannot be issued a show cause notice. It is not the case of the appellant that their branch offices are separately registered with the department for the alleged services rendered. Therefore, we do not find any force in the arguments of the appellant that the show cause notice was issued without jurisdiction. Coming to the merits of the case, we find that as far as mutual funds and Government of India Bonds are concerned, identical issue came before this Bench in the case of CCCE & ST, Hyderabad Vs Andhra Bank [2018 (7) TMI 1439 (CESTAT-Hyd)] in which it was held as follows:
“8. We find that in respect of the demand of commission on sale of mutual funds, the period involved is July 2003 to 09.07.2004. Identical issue came up before the Tribunal in the case of P.N. Vijay Financial Services (P) Ltd. Wherein the Bench held that sale and purchase of mutual funds is covered under notif

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of the Apex Court in the case of Federal Bank Limited would squarely cover the issues in favour of the respondent and is also the judgment of the Tribunal in the case of Western Union Financial Services. We do not find any reason to deviate from such a view already taken.
11. As regards the commission received on sale of Government of India bonds, the period involved is from July 2003 to June 2003, identical issue came up before the Tribunal in the case of HDFC Bank Ltd wherein the Tribunal held that sale of RBI bonds and receipt of brokerage being the transaction of government securities, there is no service tax liability. The said view is followed by the Revenue in the case of CITI Bank [2017 (12) TMI 18 – CESTAT-Chennai]. We do not find any reason to deviate from such a view already taken.”
8. In view of the above, we find no reason to take a different view in this case and we hold that the service of sale of Government of India bonds is not a service and there is no tax liabili

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marketing of sale of goods produced or provided by or belonging to a client. Clause (ii) deals with promoting or marketing of service provided by a client. Clause (iii) deals with any customer care services provided on behalf of the client. In this case the appellant is receiving commission from either Central Government or from the State Government and hence it is not unreasonable to call them their clients. However, the services are neither sale or marketing of goods nor promoting or marketing of services or any customer care services. In fact, collection of tax is neither a sale of good nor rendering of service. It is a compulsory payment which is collected by law from everyone by the State and the tax payer is not the customer or the client of the Government. It is in this compulsory collection of money in the form of tax, the appellant is assisting the Government of India and the State Government and is getting paid for the same. Therefore, we are of the considered view that by n

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vered. The Hon'ble Larger Bench of CESTAT in the case of Standard Chartered Bank Ltd and others [2015 (8) TMI 686 (CESTAT-Delhi (LB))] held that the comprehensive definition of the credit card services w.e.f. 01.05.2006 do not automatically apply to the credit card services when they were rendered as a part of “the banking and other financial services”. We, therefore, find that the credit card services rendered by the appellant by selling and promoting the credit card issued by their parent company viz., SBI and the commission received by them for this service fall under the definition of credit card services w.e.f. 01.05.2006. Prior to the introduction of this definition the credit card services would have been chargeable to service tax to the extent applicable and as “banking and other financial services”. Therefore, the demand made on sale of credit cards under the head of 'business auxiliary services' does not sustain.
9. In view of the above, we find that the demands raised in th

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REGARDING GSTR-3B.
ORDER NO. 29 Dated:- 27-9-2018 Uttar Pradesh SGST
GST – States
Enclosed KA.NI.-2-1884/XI-9(47)/17-U.P. Act-1-2017,
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Document 1
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¤¹à¥Ë†, à¤Å“ुलाà¤Ë†, 2017 सà¥â€¡ नवà¤â€šà¤¬à¤°, 2018 तà¤â€¢ à¤â€¢Ã Â¥â‚¬ à¤â€¦Ã Â¤ÂµÃ Â¤Â§Ã Â¤Â¿ à¤â€¢Ã Â¥â€¡ लिए फाà¤â€¡Ã Â¤Â² à¤â€¢Ã Â¥â‚¬ à¤Å“ानà¥â€¡
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Anusha Enterprises Versus CC, CE, Visakhapatnam –II and CCT, Visakhapatnam – GST
Service Tax
2018 (11) TMI 834 – CESTAT HYDERABAD – TMI
CESTAT HYDERABAD – AT
Dated:- 27-9-2018
ST/27655/2013, ST/30254/2016, ST/31131/2017, ST/30459/2018 – A/31327-31330/2018
Service Tax
Mr. M.V. RAVINDRAN, MEMBER (JUDICIAL) AND Mr. P. VENKATA SUBBA RAO, MEMBER (TECHNICAL)
Ms Gaythri, Advocate for the Appellant.
Shri P.S. Reddy, Assistant Commissioner (AR) for the Respondent
ORDER
All these four appeals are taken up for disposal as the issue involved is the same and appellant is also the same.
2. The details of the appeals are under:
Sl. No.
Appeal No.
Appellant (s)
Respondent(s)
Impugned Order
1.
ST/27655/2013
Anusha Enterprises
CC, CE, Visakhapatnam -II
OIA No. 22/2013 (VII) ST dated 17.05.2013
2.
ST/30254/2016
-do-
-do-
OIA No. VIZ-EXCUS-002-APP-048-15-16, dated 28.10.2015
3.
ST/31131/2017
-do-
-do- CCT, Visakhapatnam – GST
OIA No. VIZ-EXCUS- 002-APP-026

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e notice under Section 73(1A) of the Act was issued vide C. No. V/15/25/2015-ST-Tech. dated 15.09.2015 demanding service tax of Rs. 59,405/- (including cesses) under Section 73(1) of the Finance Act, 1994 along with interest under Section 75; apart from penalty under sections 76 of the Finance Act, 1994 for not paying service tax in contravention of Section 68 of the Act read with Rule 6 of the Service Tax Rules, 1994. The notice was adjudicated in the impugned order dated 11.05.2016, culminating in the instant appeal;
3.1 The appellant contended before the adjudicating authority interalia that they were only engaged in the activity of selling of the products entrusted by Bata India Limited for an agreed commission of 7% of the retail sale price, the total price of which for the previous  year was less than Rs. 10 lakhs and therefore entitled to the benefit of SSI threshold exemption available under Notification No. 33/2012-ST dated 20.06.2012; that in order to constitute a servi

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ing simply as agent; the case laws cited by the appellant are distinguishable in as much as the case law pertains to commission agents of both banking and non-banking financial institutions and in this case the issue is the assessee is performing his work under the brand name of “Bata”. As the assessee's appeal on the same subject at the Hon'ble CESTAT, Bangalore has not yet been decided, following the jurisprudence, following the order of the Commissioner (Appeals), the lower authority confirmed the demand of Rs. 59,405/- under Section 73(1) of the Act, along with interest under Section 75 ibid; imposed a penalty of Rs. 100/- per month for every day during which such failure continues or at the rate of one percent per month of the demand, whichever is higher under Section 76 of the Act. The lower authority further imposed a penalty of Rs. 10,000/- under Section 77(1)(a) for failure to obtain registration and thus violating Section 69; and penalty of Rs. 10,000/- under Section 77(2) of

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to deny them the exemption and collect service tax from them. She submits that the proviso that is sought to be interpreted by the Department is stating that taxable services provided by the appellant under a brand name or a trade name, whether registered or not, of another person this is incorrect, as appellant is only getting a commission of 7.5% on the total sales made in the outlet and is not marketing any branded services. It is her submission that undoubtedly “Bata” products in shop are for sale and they market the same, but sell the footwear customers. The commission is received by the appellant being less than Rs. 4 lakhs and less than Rs. 10 lakhs during the periods in question, the tax liability confirmed denying the benefit of exemption notification is not in accordance with the law is settled in various forums. She relies upon the various decisions, Peoples Automobiles Ltd., [2011 (24) STR 635], MRS Jaspreet Kaur & MR Gagandeep Singh Vs. CCE, Delhi [2012-TIOL-142-CESTAT-De

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rom the Bata outlet, as per an agreement Revenue has sought to tax the amount received by the appellant as a commission, while, it is the argument of the appellant that the said commission is less than threshold limit under the Notification No. 06/2005-ST and 33/2012 it is not taxable. It is seen from the records that Revenue wants to deny the benefit of notification to the appellant based upon the proviso to the said notification. The relevant portion of the notification is extracted.
In exercise of the powers conferred by sub-section (1) of Section 93 of the Finance Act, 1994 (32 of 1994) (hereinafter referred to as the said Finance Act), the Central Government, on being satisfied that it is necessary in the public interest so to do, hereby exempts taxable services of aggregate value not exceeding four lakh rupees in any financial year from the whole of the service tax leviable thereon under section 66 of the said Finance Act:
Provided that nothing contained in this notification sh

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ench of the Tribunal in the case of A.S. Financial. In that case, Revenue while invoking the same provisions wanted to tax the amount received by the respondent in that appeal (A.S. Financial). The relevant findings of the Tribunal in an issue similar/identical to the in the case in hand are reproduced.
“5. There is no dispute that the services provided by the respondent to ICICI Bank are the services of marketing of the services of ICICI Bank and also assisting the customers in obtaining loans from the bank and this service is Business Auxiliary Service taxable under Section 65(105)(zzb) read with Section 65(19) of the Finance Act, 1994. There is also no dispute that the turnover of the respondent during each financial year, during the period of dispute, is less than Rs. 4 Lakhs. The only point of dispute is as to whether the respondent are eligible for small scale provider exemption under Notification No. 6/2005-S.T. and in this regard, the only point of dispute is as to whether the

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the respondent shall, on the premises from where they are going to conduct their business, display a sign bearing the words “Franchisee of ICICI Bank Ltd.” and shall also mention the words, “Franchisee of ICICI Bank Ltd.” on their visiting cards and the in the newspapers advertisements issued by them for marketing/promoting the services of ICICI Bank Ltd. Clause 6 of the agreement mentions that the Franchisee shall use only such letter head, invoices, signs, display materials, promotional literature, equipment and other items in connection with the promotion of service products of ICICI Bank Ltd. as approved by the ICICI bank in writing. In terms of Clause 10 of the agreement, ICICI Bank shall make available to the respondent the advertisement materials including posters, leaflets, displays, flyers, stickers, signs, cards, which the respondent shall prominently display, maintain and distribute at their own expenses. In our view, there is nothing in the above clauses from which it can b

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eir service under the brand name of ICICI Bank. In fact the Respondent are not the Franchise of ICICI Bank Ltd. in the sense that they are providing financial services by using the business model and brand name of ICICI Bank. It is not the case of the department that the respondent for using the brand name or trade name of ICICI Bank Ltd. were paying some amount to the bank. On the contrary, it is the ICICI Bank which is paying to the respondent for providing the marketing services. The respondent, therefore, cannot be treated using the brand name of ICICI Bank Ltd. We, therefore, do not find any infirmity in the impugned order. The Revenue's appeal is dismissed.”
It can be seen from the above reproduced findings in the case of A.S. Financial, the respondent was specifically providing the marketing services and display banners and equipments and other items were of the expenses of A.S. Financial. The issue involved in this case in hand by squarely covered by the above said ratio and w

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Governor is pleased to allow to appoint the 1st day of October, 2018, as the date on which the provisions of section 52 of the Uttarakhand Goods and Services Tax Act, 2017 shall come into force.
859/2018/16(120)/XXVII(8)/CT-51 Dated:- 27-9-2018 Uttarakhand SGST
GST – States
Uttarakhand SGST
Uttarakhand SGST
Government of Uttarakhand
Finance Section-8
NOTIFICATION
September 27, 2018
No. 859/2018/16(120)/XXVII(8)/CT-51 -WHEREAS the State Government is satisfied that it is expedi

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Waives the late fee payable on FORM GSTR-3B, FORM GSTR-4, FORM GSTR-6
853/2018/10(120)/XXVII(8)/2018/CT-41 Dated:- 27-9-2018 Uttarakhand SGST
GST – States
Uttarakhand SGST
Uttarakhand SGST
Government of Uttarakhand
Finance Section-8
NOTIFICATION
September 27, 2018
No. 853/2018/10(120)/XXVII(8)/2018/CT-41-WHEREAS, the State Government is satisfied that it is expedient so to do in public intersest;
Now THEREFORE, in exercise of the powers conferred by section 128 of the Uttarakhand Goods and Services Tax Act, 2017 (06 of 2017), the Governor, on the recommendations of the Council, is pleased to allow to waive the late fee paid under section 47 of the said Act, by the following classes of taxpayers : –
(i) the registered pe

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Uttarakhand Goods and Services Tax (Tenth Amendment) Rules, 2018
857/2018/16(120)/XXVII(8)/2018/CT-49 Dated:- 27-9-2018 Uttarakhand SGST
GST – States
Uttarakhand SGST
Uttarakhand SGST
Government of Uttarakhand
Finance Section-8
NOTIFICATION
September 27, 2018
No. 857/2018/16(120)/XXVII(8)/2018/CT-49 – In exercise of the powers conferred by section 164 of the Uttarakhand Goods and Services Tax Act, 2017 (06 of 2017) read with section 21 of Uttar Pradesh General Clause Act, 1904 (Act No. 1 of 1904) (as applicable in the State of Uttarakhand), the Governor is pleased to make the following rules to further amend the Uttarakhand Goads and Services Tax Rules, 2017, namely:-
The Uttarakhand Goods and Services Tax (Tenth Amendment) Rules, 2018
1. Short title and Commencement
(1) These rules may be called the Uttarakhand Goods and Services Tax (Tenth Amendment) Rules, 2018.
(2) They shall come into force from the 13th day of September, 2018.
2. Insertion of FORM
In F

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s issued after the end of the financial year but reflected in the annual return
(+)
F
Trade Discounts accounted for in the audited Annual Financial Statement but are not permissible under GST
(+)
G
Turnover from April 2017 to June 2017
(-)
H
Un-billed revenue at the end of Financial Year
(-)
I
Un-adjusted Advances at the beginning of the Financial Year
(-)
J
Credit notes accounted for in the audited Annual
(-)
Financial Statement but are 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

Q
Turnover as declared in Annual Return (GSTR9)
R
Un-Reconciled turnover (Q – P)
AT1
6
Reasons for U

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)
12%
12% (RC)
18%
F
G
H
I
18% (RC)
28%
28% (RC)
3%
J
K
L
M
0.25%
0.10%
Interest
Late Fee
N
O
P
Q
R
Penalty
Others
Total amount to be paid as per tables above




Total amount paid as declared in Annual Return (GSTR 9)
Un-reconciled payment of amount
PT 1
10
Reasons for un-reconciled payment of amount
A
B
C
Reason 1
<>
Reason 2
<>
Reason 3
<>
11
Additional amount payable 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

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s, wages, Bonus etc.)
Conveyance charges
Bank Charges
K
L
M
N
O
P
Entertainment charges
Stationery Expenses (including postage etc.)
Repair and Maintenance
Other Miscellaneous expenses
Capital goods
Any other expense 1
Q
Any other expense 2
R
Total amount of eligible ITC availed
<>
S
ITC claimed in Annual Return (GSTR9)
T
Un-reconciled ITC
ITC 2
15
Reasons for un – reconciled difference in ITC
A
Reason 1
<>
B
C
Reason 2
<>
Reason 3
<>
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
Penal

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for every GSTIN separately.
3. The reference to current financial year in this statement is the financial year for which the reconciliation statement is being filed for.
4. Part II consists of reconciliation of the annual turnover declared in the audited Annual Financial Statement with the turnover as declared in the Annual Return furnished in FORM GSTR-9 for this GSTIN. The instructions to fill this part are as follows :-
Table No.
Instructions
5A
The 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

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ver in the audited Annual Financial Statement is not required to be included here.
5E
Aggregate value of credit notes which were issued after 31st of March for any supply accounted in the current financial year but such credit notes were reflected in the annual return (GSTR-9)shall be declared here.
5F
Trade discounts which are accounted for in the audited Annual Financial Statement but on which GST was leviable(being not permissible) shall be declared here.
5G
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
Aggreg

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nnual Financial Statement due to difference in valuation of supplies shall be declared here.
5N
Any difference between the turnover reported in the Annual Return (GSTR-9) and turnover reported in the audited Annual Financial Statement due to foreign exchange fluctuations shall be declared here.
5O
Any difference between the turnover reported in the Annual Return (GSTR-9) and turnover reported in the audited Annual Financial Statement due to reasons not listed above shall be declared 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

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Reasons for non-reconciliation between adjusted annual taxable turnover as derived from Table 7E above and the taxable turnover declared in Table 7F shall be specified here.
5. Part III consists of reconciliation of the tax payable as per declaration in the reconciliation statement and the actual tax paid as declared in Annual Return (GSTR9). The instructions to fill this part are as follows :-
Table No.
Instructions
9
The table provides for reconciliation of tax paid as per reconciliation 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 (GSTR-9) shall be declared here. It should also contain any differentia

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ence over multiple States.
12B
Any ITC which was booked in the audited Annual Financial Statement of earlier financial year(s)but availed in the ITC ledger in the financial year for which the reconciliation statement is being filed for shall be declared here. This shall include transitional credit which was booked in earlier years but availed during Financial Year 2017-18.
12C
Any ITC which has been booked in the audited Annual Financial Statement of the current financial year but 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

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Table 14R and ITC declared in Table 14S shall be specified here.
16
Any amount which is payable due to reasons specified in Table 13 and 15 above shall be declared here.
7. Part V consists of the auditor's recommendation on the additional liability to be discharged by the taxpayer due to non-reconciliation of turnover or non-reconciliation of input tax credit. The auditor shall also recommend if there is any other amount to be paid for supplies not included in the Annual Return. 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-9-C) is drawn up by the person w

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and the rules/notifications made/issued thereunder:
1.
2.
3.
3. (a) *I/we report the following observations/ comments / discrepancies / inconsistencies; if any:
…………………………………….
…………………………………….
3. (b) *I/we further report that, –
(A) *I/we have obtained all the information and explanations which, 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 expenditu

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hellip;…………………
(b) ……………………………………………………………………………………
(c) ……………………………………………………………………………………
………………………………………
………………………………………
**(Signature and stamp/Seal of the Auditor)
Place: ……………
Name of the signatory ………………&he

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we annex hereto a copy of their audit report dated ……………………………. along with a copy of each of :-
(a) balance sheet as on ………
(b) the *profit and loss account/income and expenditure account for the period beginning from ………..…to ending on …….,
(c) the cash flow statement for the period beginning from ……..…to ending on ………, and
(d) documents 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/ Uttarakhand GST Act, 2017 and the rules/notifications made/issued thereunder
*has not maintained the following accounts/records/documents as required by the IGST/CGST/ Uttarakhand GST Act, 2017 and

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Uttarakhand Goods and Services Tax (Ninth Amendment) Rules, 2018
855/2018/15(120)/XXVII(8)/2018/CT-48 Dated:- 27-9-2018 Uttarakhand SGST
GST – States
Uttarakhand SGST
Uttarakhand SGST
Government of Uttarakhand
Finance Section-8
NOTIFICATION
September 27, 2018
No. 855/2018/15(120)/XXVII(8)/2018/CT-48 – In exercise of the powers conferred by section 164 of the Uttarakhand Goods and Services Tax Act, 2017 (06 of 2017) read with section 21 of Uttar Pradesh General Clause Act, 1904 (Act No. 1 of 1904) (as applicable in the State of Uttarakhand), the Governor is pleased to make the following rules to further amend the Uttarakhand Goods and Services Tax Rules, 2017, namely:-
The Uttarakhand Goods and Services Tax (Ninth Amendme

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waive the late fee return in FORM GSTR-3B, FORM GSTR-4 and FORM GRTR-6
853/2018/10(120)/XXVII(8)/2018/CT-41 Dated:- 27-9-2018 Uttarakhand SGST
GST – States
Uttarakhand SGST
Uttarakhand SGST
Government of Uttarakhand
Finance Section-8
NOTIFICATION
September 27, 2018
No. 853/2018/10(120)/XXVII(8)/2018/CT-41 – WHERES, the State Government is satisfied that it is expedient so to do in public interest,
Now THEREFORE, in exercise of the powers conferred by section 128 of the Uttarakhand Goods and Services Tax Act, 2017 (06 of 2017), the Governor, on the recommendations oi the Council, is pleased to allow to waive the late fee paid under section 47 of the said Act, by the following classes of taxpayers :-
(i) the registered pe

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In Re: M/s. Sonkamal Enterprises Private Limited
GST
2018 (12) TMI 532 – AUTHORITY FOR ADVANCE RULING, MAHARASHTRA – 2019 (20) G. S. T. L. 498 (A. A. R. – GST)
AUTHORITY FOR ADVANCE RULING, MAHARASHTRA – AAR
Dated:- 27-9-2018
GST-ARA-48/2018-19/B-123
GST
SHRI B.V. BORHADE, AND SHRI PANKAJ KUMAR, MEMBER
PROCEEDINGS
(Under section 98 of the Central Goods and Services Tax Act, 2017 and the Maharashtra Goods and Services Tax Act, 2017)
The present application has been filed under section 97 of the Central Goods and Services Tax Act, 2017, and the Maharashtra Goods and Services Tax Act, 2017 [hereinafter referred to as “the CGST Act and MGST Act”] by SONKAMAL ENTERPRISES PRIVATE LIMITED, the applicant, seeking an advance ruling in respect of the following ISSUE..
1) Whether the procedure to raise the invoice from Mumbai Head Office for imports received at Haldia Port Kolkata where we do not have any separate GST Registration and Charge IGST from Mumbai to our Custo

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atement of relevant facts having a bearing on the question(s) raised
Sonkamal Enterprises Private Limited is a Company having its Head office at Mumbai and a Branch in Gujarat – Gandhidham, Both are Registered Under the GST Act. We are importer of Chemicals especially phenol which we currently import at JNPT Port, Maharashtra and Kandla Port, Gujarat. We wish to Import the Chemicals at Haldia Port (Kolkata, West Bengal). We are storing goods at rented Customs warehouse at Haldia Port, we do not have any establishment or place of operation in State of West Bengal, we endeavour to clear the goods from that warehouse (Ex Bond) in the name of our Mumbai Head Office so here importation will be completed by payment of Custom Duty in Mumbai Head Office Name and we want to sell the goods to customers in West Bengal and other States nearby from that warehouse and charge IGST to our customer by raising bill from Mumbai and not West Bengal.
We do not have any godown in the state of West Bengal

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as per our understanding registration is required 'in' the state 'from which' taxable supplies are made. Registration is not required 'in' the State 'to which' taxable supplies are made. It is important to identify the 'origin' of supply even though GST is a 'destination' based tax. Tax goes to the destination-state but registration is required in the Origin-State. so the Location of Supplier is relevant for registration. In case of goods the Location of the supplier includes 'place where goods are stored'. Hence, location of supplier of goods is where business is ordinarily carried on or where the goods themselves are located, it is the place where the supplier holds control over the goods ready to deliver. In other words, location of supplier may be understood as the location of goods ready for supply. The word 'location' in this phrase refers to the site or premises (geographical point) where the supplier is situated, with the goods in his control, ready to be supplied.
Now in our

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d warehouse and we will not be required to have registration in West Bengal.
WRITE UP FOR THE PRACTICE TO BE FOLLOWED AND PRE GST PRACTICE FORR THE SAID TRANSACTION:  
There is no Pre GST practice in this case, as transaction is to be undertaken for the 1st time at Kolkata port.
The Practice that we are intending to follow is : We will import the goods at Kolkata port in the name of M/s. Sonakamal Enterprises Pvt. Ltd. – Mumbai H.O. GSTIN. The Material will be stored at Kolkata Custom Port in the Custom Bonded Warehouse, we will remove the goods from warehouse only when we get any customers for delivery. The material will be supplied directly from that port to Customers in Kolkatta and in other nearby states.
The Tax Invoice will be raised From Mumbai Branch with Mumbai GSTIN levying IGST, These invoice data will be uploaded by us in GSTR-1 Form of Mumbai Branch.
E Way bill will be issued as Follows :
Bill From : SEPL Mumbai GSTIN
Dispatch From : Kolkata Port Bonded Wareho

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will be made and maintained properly.
03. CONTENTION – AS PER THE CONCERNED OFFICER
The submission, as reproduced verbatim, could be seen thus-
M/s. Sonkamal Enterprises Pvt. Ltd., 47, 602, Sunil Enclave, Periera Hill Road, Off. Andheri Kurla Road, Cinemagic Theatre, Andheri (East), Mumbai 400099 (here in after referred to as 'the applicant') has filed above detailed application under Section 98 of the Central Goods and Service Tax Act, 2017 read with Rule 104 (1) of the CGST Rules, 2017 seeking advance ruling on:
(i) whether the procedure to raise the invoice from Mumbai Head Office for imports received at Haldia Port, Kolkata where they do not have any separate GST Registration and Charge IGST from Mumbai to our Customers is correct? Or do they have to take separate Registration in the State of West Bengal for the below mentioned transactions?.
(ii) If they do not need separate registration in West Bengal, can they do the transaction on Mumbai Head Office GSTIN, then in case

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IGST to their customers by raising bill from Mumbai and not West Bengal. They do not have any godown in the state of West Bengal and will not have any other godown or storage facility in the state other than the Haldia Port Customs Warehouse.
3. In point No.16 of the application, the applicant has stated and interpreted that they will be supplying Goods to their customers in West Bengal from Customs Warehouse situated at Kolkata, therefore place of supply is West Bengal as per Section 10(1)(a) of IGST Act, 2017. Since they are only registered at Maharashtra and are supplying the goods or their Maharashtra GSTIN registration number for this transaction, so it is an interstate supply of goods as defined in Section 7(3) of the IGST Act, 2017 and therefore the transaction attracts IGST. Hence, they are not required to have separate GST registration in the state of West Bengal.
FINDINGS
The basic issue to be decided in the application is whether
(i) whether the procedure to raise the in

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a.
6. Since, the applicant wish to import Chemicals viz. goods at Haldia Port (Kolkata, West Bengal), the nature of supply of goods is an interstate supply of goods as defined in Section 7(2) of the IGST Act, 2017 because Section 7(2) deals with Supply of goods imported into the territory of India and not Section 7(3) of the IGST Act, 2017, as claimed by the applicant, as it pertains to Supply of Services.
Secondly, the place of Supply of Goods as per Section 11(a) of the IGST Act,2017 which is for goods imported into India and the place of supply shall be the location of the importer and not Section of IGST Act, 2017, as claimed by the applicant, which is for place of supply of goods other than supply of goods imported into.
7. Coming to the 1st question, i.e. “whether the procedure to raise the invoice from Mumbai Head Office for imports received at Haldia Port, Kolkata where they do not have any separate GST Registration and Charge IGST from Mumbai to our Customers is correct? Or

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supply of goods or services or both, if his aggregate turnover in a financial year exceeds twenty lakh rupees:….” In this case, the applicant makes a taxable supply of goods from Mumbai Head Office, as he does not have any office in the State of West Bengal as per his applicant. Hence, place from where the supplier makes a taxable Supply of Goods shall be the location of the supplier i.e Mumbai Head Office. since the applicant do not have any godown in the state of West Bengal as per their application and hence it appears that separate registration need not be taken in the State of West Bengal.
8. Coming to the 2nd question, i.e. “If they do not need separate registration in West Bengal, can they do the transaction on Mumbai Head Office GSTIN, then in case of issuance of e-way bill is it correct to Mention the GSTIN of Mumbai and Dispatch place of Haldia Port? the answer the answer appears to be positive i.e. the applicant need not take separate registration in West Bengal and the

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y do the transaction on Mumbai Head Office GSTIN, then in case of issuance of e-way bill is it correct to Mention the GSTIN of Mumbai and Dispatch place of Haldia Port?, the answer appears to be positive i.e. the applicant need not take separate registration in West Bengal and they can do the transaction on Mumbai Head Office GSTIN and it appears to be correct to mention the GSTIN of Mumbai Head Office in the E-way Bill and dispatch place as Customs Warehouse situated at Kolkata. However, the aforesaid is subject to issuance of an invoice and paying applicable IGST or CGST+SGST or Compensation Cess etc., as applicable as per the CGST/SGST/UTGST/IGST Acts respectively.
04. HEARING
The case was taken up for Preliminary hearing on dt. 31.07.2018 when Ms. Dhwani Piyush Shah, Accountant of the company along with Sh. Dinesh Taylor, Chief Accountant and Sh. Vinod Shah, Director appeared and requested for admission of application as per contentions in their ARA. Jurisdictional Officer, Ms.

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t.
They do not have any establishment or place of operation or any godown or GSTIN in the State of West Bengal and after importation, want to clear the goods from that warehouse (Ex Bond) in the name of their Mumbai Head Office. They want to sell such imported goods to customers in West Bengal and other States nearby from that warehouse and charge IGST by raising bills/invoices from Mumbai and not from West Bengal. The terms of delivery Will be Ex-Terminal (i.e., the ownership and its respective risks and rewards will be transferred to their customer the moment goods are cleared from the customs port). The goods will be transported directly from that port to Customers in Kolkata or in any other states. The Tax Invoice be raised From Mumbai H.O. with Mumbai GSTIN levying IGST.
Hence the following two questions have been raised by the in this application:-
(i) whether the procedure to raise the invoice from Mumbai Head Office for imports received at Haldia Port, Kolkata where they do

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017, consisting of Sections 22 to 30 deals with registration under GST. Section 22 speaks of persons who are liable for registration and as per Section 22 (1) ” Every supplier shall be liable to be registered under this Act in the State or Union territory, other than special category States, from where the makes a taxable supply of goods or services or both, if ………………………….”
In the present case as mentioned above the place of supply is the location of the importer who is situated in the State of Maharashtra and hence the applicant will be clearing the goods by paying IGST form their GSTIN issued in Mumbai, Maharashtra. Since the applicant has no establishment or place of operation or any godown or GSTIN in the State of West Bengal i.e. the port of import, therefore, after exbonding of imported goods from the Customs warehouse at Kolkata and for further sales after exbonding, Whether that would be interstate or intrastate supply would depend upon the place of supply

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ning the GSTIN of their Mumbai office. Hence we are of the opinion that they can do the transaction on Mumbai Head Office GSTIN and can mention the GSTIN of Mumbai Head Office in the E-way Bill and dispatch place as Customs Warehouse, Kolkata.
05. In view of the extensive deliberations as held hereinabove, we pass an order as follows :
ORDER
(under section 98 of the Central Goods and Services Tax Act, 2017 and the Maharashtra Goods and Services Tax Act, 2017)
NO.GST-ARA-48/2018-19/B-123
Mumbai, dt. 27/09/2018
For reasons as discussed in the body of the order, the questions are answered thus –
Question 1:- Whether the procedure to raise the invoice from Mumbai Head Office for imports received at Haldia Port Kolkata where we do not have any separate GST Registration and Charge IGST from Mumbai to our Customers is correct? or do we have to take separate Registration in the State of West Bengal for the below mentioned transactions?
Answer :- Answered in the affirmative as per det

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M/s. Future Gaming and Hotel Services Private Limited and Another Versus Union of India and Others
GST
2018 (12) TMI 1603 – SIKKIM HIGH COURT – 2018 (18) G. S. T. L. J216 (Sikkim)
SIKKIM HIGH COURT – HC
Dated:- 27-9-2018
WP (C) No. 36 of 2017
GST
MRS. MEENAKSHI MADAN RAI AND MR. BHASKAR RAJ PRADHAN, JJ.
For Petitioners : Mr. Karma Sonam Lhendup, Advocate. Ms. Tashi Doma Sherpa, Advocate.
For Respondents : Mr. B. K. Gupta Advocate, Mr. Thinlay Dorjee Bhutia, Government Advocate, Mr. S. K. Chettri Assistant Government Advocate, Mrs. Pollin Rai Assistant Government Advocate, Ms. Karma Yangchen Bhutia, Advocate, Mr. Manish Kr. Jain, Advocate, Ms. Ranjeeta Kumari, Advocate
ORDER
I.A. No.01 of 2017 and I.A. No.05 of 2018
I.A. No.01 of 2017 and I.A. No.05 of 2018 are not pressed by Learned Counsel for the Petitioners.
In the circumstance, I.A. No.01 of 2017 and I.A. No.05 of 2018 stand disposed of.
I.A No.10 of 2018
Heard on I.A. No.10 of 2018, which is an applic

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g in mind the federal structure of the Constitution neither the Union of India nor any State can give preference to one State over the other. It is also pleaded that the impugned Notifications have been passed on the recommendations of the GST Council.
The application under consideration states that the GST Council is a statutory body whose duty has been enumerated as making recommendations to the Union and the States on inter alia (a) the taxes, cesses and surcharges levied which may be subsumed in the GST (b) the goods and services that may be subjected to or exempted from the GST and (c) special provision with respect to the States of Arunachal Pradesh, Assam, Jammu & Kashmir, Manipur, Meghalaya, Mizoram, Nagaland, Sikkim, Tripura, Himachal Pradesh and Uttarakhand.
It is further submitted that the Respondent No.2 in its counter affidavit has annexed the minutes of the 18th meeting of the GST Council and it is alleged that the submissions made by several representative of the North

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ommissioner, Large Tax Payer Unit, GST, as well as Chief Commissioner of Goods and Services Tax, West Bengal in the following manner:-
“6. That on 08.02.2018, the representative of Petitioner No.1 after being verbally summoned to the office of the Senior Joint Commissioner, Large Tax Payer Unit, GST, directed the representatives of the Petitioner No.1 to ask their Director, Mr. S. Martin to be present before him on 12.02.2018 and 13.02.2018. On both these occasions, the Director of the Petitioner No.1 was present, where the Director was pressurized to forthwith deposit the amount of GST that according to the Senior Joint Commissioner, Large Tax Payer Unit, GST had fallen due under the impugned Act and the notifications, at the rate of 28%. All his fervent pleas for keeping in abeyance the issue of GST till final adjudication in the instant writ petition were brushed aside and finally on 15.02.2018, the Petitioner No.1 agreed to pay the GST.
7. That the Chief Commissioner of Goods a

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ef Commissioner of Goods and Service tax, West Bengal and the Senior Joint Commissioner, Large Tax Payer Unit, GST have become proper and necessary parties for the purpose of adjudication of the instant writ.”
 The affidavit in opposition filed on behalf of the Respondent No.1 and the GST Council merely states that the averments made therein except for those matter of records are not accepted. The State of West Bengal through the Finance Secretary is Respondent No.7 in the Writ Petition.
The Petitioner seeks a prayer to hold and declare that the provisions of serial No.6 of Schedule III read with Section 7 (2) of the State Goods and Services Tax Act, 2017 (SGST Act) of the State of West Bengal exempting “actionable claims” as activities or transactions which shall be treated neither as supply of goods nor a supply or service but not excluding “lottery” from such exemption is unconstitutional, illegal and non-est as “lotteries” cannot at all be subjected to tax under the SGST Act

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GST rate for individual residential house.
Query (Issue) Started By: – SARVESH RANE Dated:- 26-9-2018 Last Reply Date:- 26-10-2018 Goods and Services Tax – GST
Got 7 Replies
GST
Dear Sir can you please provide me clarification on GST rate for providing service to build only individual residential house (not including land).
Case- I owned piece of land and I want to construct house over there so i hired the civil engineer for the same. Contract value is 25 lakh for building house including labor and material. So what will be the GST rate levied by civil engineer for providing the service.
What will be the GST rate if contract is consist of providing only labour servies(not material)??
Thank You..!!!
Reply By KASTURI SETHI:
The

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GST rate for Pure Labor Services
Query (Issue) Started By: – SARVESH RANE Dated:- 26-9-2018 Last Reply Date:- 22-10-2018 Goods and Services Tax – GST
Got 5 Replies
GST
Hello Sir, If one construction firms let us say ABS & Co. provides only labors to other construction company let us say Patil Ltd. then is this service exempt as per Sl. No. 10 & 11 of Notification No. 12/2017-Central Tax (Rate) dated 28.6.2017??? If not what will be the GST rate levied by ABS & Co. for supplying service to Patil Ltd. Please clarify.
Thanking You..!!!
Reply By DR.MARIAPPAN GOVINDARAJAN:
The Reply:
In my view it is exempted.
Reply By KASTURI SETHI:
The Reply:
I endorse the views of Dr.Govindarajan,, Sir.
Reply By SARVESH RANE:
The Reply:
Ve

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ISD can distribute ITC to SEZ or not.
Query (Issue) Started By: – Alkesh Jani Dated:- 26-9-2018 Last Reply Date:- 25-10-2018 Goods and Services Tax – GST
Got 5 Replies
GST
Dear Experts,
If a company is having his head office in Delhi and three factory in three different states and one unit in SEZ. The head office had taken registration as ISD also.
The query is :-
ISD can distribute ITC to its SEZ unit or not.
Thanks
Reply By KASTURI SETHI:
The Reply:
ISD can distribute ITC (

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Cabinet approves increasing of Government ownership in Goods and Services Tax Network and change in the existing structure with transitional plan
GST
Dated:- 26-9-2018

The Union Cabinet, chaired by the Prime Minister Shri Narendra Modi has approved increasing of Government ownership in Goods and Services Tax Network (GSTN) and change in the existing structure with transitional plan as per following:
* Acquisition of entire 51% equity held by the Non-Government Institutions in GST

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Interest calculation in GST
Query (Issue) Started By: – anuja bhandari Dated:- 26-9-2018 Last Reply Date:- 26-10-2018 Goods and Services Tax – GST
Got 6 Replies
GST
If the total GST liability is 10 Lacs for Aug 2018, Eligible ITC availed is 7 Lacs, Balance challan paid on 25 Sept 2018 with interest calculated on 3 lacs for 5 days delay. Return filed on 25 Sep 2018. Whether interest to be calculated on full liability of 10 lacs or Challan payable amount of 3 lacs?
Reply By Nitika Aggarwal:
The Reply:
Dear Sir,
As per provisions contained in Section 50 of CGST Act, 2017, Interest shall be paid on full amount i.e. ₹ 10 Lacs for 5 days delay in return filing. For the sake of easy reference, the relevant extracts from the a

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edited after making debits in electronic cash ledger or electronic credit ledger. Further it is important to note that, the electronic liability register can be credited only at the time of filing the monthly return, i.e., GSTR-3B / GSTR-3.
Another school of thought
Interest for the delayed payment of tax is considered to be levied for the reason that there would be a loss to Government, to the extent of such delay. However, in cases where there is sufficient balance in electronic cash ledger and electronic credit ledger and such credit is reflecting in GSTR-2A there would be no loss to the treasury.
When this fact is taken into account the law is against the basic philosophy behind levy of interest. This could be challenged by filing wr

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omething I can remove or take refund of (considering I do not fall in Sec 54/55 refund provisions), the ITC is with the Government. Only because of the machinery provision of filing of a GSTR 3B return that it needs to be debited could be questioned.
Also, in case of high volume output tax of a taxpayer where ITC is in excess and delay of filing return due to some unavoidable reason, the interest could be exponentially high just because the return was delayed. Wherein the taxpayer is paying prescribed late fee for filing the return.
Please let me know if any views on the above. Appreciate the responses. Thank you.
Reply By Ganeshan Kalyani:
The Reply:
Pay tax means ₹ 10 lacs. It can be paid by two way that is either by cash or by

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Regarding Anti Profiteering
Query (Issue) Started By: – Prashanth Jadhav Dated:- 26-9-2018 Last Reply Date:- 26-10-2018 Goods and Services Tax – GST
Got 3 Replies
GST
Dear Sirs,
We had received a Purchase Order for supply of IT Hardware goods in February 2017. With the delivery Date being 05/07/2017.
The Purchase Order Had Expired after this date due to site readiness issues at the customer end.
The Purchase order was amended so that the delivery can be carried out. The revised purchase order mentioned SGST 9% and 9% CGST applicable with the purchase price remaining the same.
Based on this the materials were delivered to the customer on 19/03/2018.
While we had submitted our invoice for payment realization, the customer ha

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ction of GST. Such benefit is required to be passed on. In your case, since the entire transaction is under GST, the taxes would not be forming part of the cost and thus are not required to be passed on.
Reply By Yash Jain:
The Reply:
Dear Sir,
Per Se, it appears that the contention of your customer will not hold good and following are the reasons ,
* CVD and SVD have been subsumed in GST : Now CVD and SVD Will form part of Cost of your product as you have imported them in pre GST Regime and must not have taken the Credit of Same in trans 1. Hence they will form Part of Cost of your goods.
(However if you have taken CVD and SVD Credit in trans 1, then please reduce the price by giving credit note to customer to that Extent).
Anti Pr

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Capital goods purchase for exempted unit and sold out
Query (Issue) Started By: – Vinod Daga Dated:- 26-9-2018 Last Reply Date:- 3-10-2018 Goods and Services Tax – GST
Got 4 Replies
GST
I have purchase some capital goods by paying GST on it. As I am selling goods which are exempted under GST so I have not taken any input against this. I am registered in GST and paying GST of some taxable turnover.
After 3 years I have sold out this, Now my question is whether I have to charge GST on these capital goods, if yes then its not double taxation or can I availed input credit on the same now.
Reply By Yash Jain:
The Reply:
Dear Sir,
As your finished prodcuts was exempted from Tax and simultaneously you were not allowed ITC, hence i

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uilt taxes in my cost for which I can't take input( as section 18 says if exempted goods become taxable than also input can be taken only when invoice is not older than 12 months). That's the reason i m calling it double taxation on that w d v value
please also note that in case of vehicle under HSN code 8703 Govt has given a provision that if we any person sold such capital goods and not taken any input credit than he has to pay tax only if he is selling that capital goods for more than w d v value.
so my query is whether above provision is applicable for all capital goods (where input is not taken) or not.
Reply By VaibhavKumar Jain:
The Reply:
The query may be explained through below example –
Cost of capital goods say ₹ 1000/

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₹ 162/- (i.e. being the higher of ₹ 144/-). And the net GST liability shall be Rs. 18/- after utilizing ITC of ₹ 144/-.
Reply By Vinod Maheswari:
The Reply:
Dear Mr. Vaibhav
In case if I am supplying it after 1 Year (12Months) then its ok I can take input credit as per section 18 1(d) read with section 18(2). but what if I am supplying such capital goods after 15 months or after 60 months.
As per section 18 1(d) I can avail input credit on capital goods which first used in exempted supply but late on when I want to sold it, it become taxable supply as per section 7. but section 18 (2) restrict to take such input if only Invoice are only 12 months old so if I am selling such capital goods after more than 12 months then

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