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2018 (7) TMI 435 – CESTAT HYDERABAD – TMI – Penalty u/s 78 – suppression of facts – the allegation in the present case is the suppression of the fact inasmuch as the appellant suppressed the true value of the services rendered by them and declared a lower value in ST-3 returns – appellant paid the service tax along with applicable interest as pointed out by the audit even before show cause notice was issued – Held that:- In an identical case in respect of the Cholamandalam MS General Insurance Company Ld., and CESTAT Chennai, [2018 (2) TMI 287 – CESTAT CHENNAI], had held that not reflecting the true value of services rendered in the ST-3 returns accounts to suppression of facts and therefore penalty under Section 78 is imposable – penalty upheld.
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Payment of the differential service tax along with interest before issuance of show cause notice – Held that:- It is now being settled by the Hon’ble Supreme Court in the case of Rajasthan Spinning & Weaving Mills [2009 (5) TMI 15 – SUP

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categories of GTA Service, Manpower Recruitment, Rent-a-Cab etc. During the period 2013-2014, 2014-2015 and 2015-2016, the appellant had short paid the service tax on the services mentioned above, and it was detected by the Department during the course of Audit on scrutiny of their records. The appellant paid the service tax along with applicable interest as pointed out by the audit even before show cause notice was issued. A show cause notice was issued to the assessee demanding the service tax short paid under Section 73 of the Finance Act along with interest under Section 75 and penalty under Section 78 of the Finance Act, 1994. It has been alleged in the show cause notice that the assessee had not correctly declared the value of the services rendered in their ST-3 returns and thereby short paid service tax. The fact of short payment would not have come to the notice of the Department but for the audit of the unit. The assessee had short paid the service tax during the period but h

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d failed to declare the true value of the taxable services in their ST-3 returns and thereby suppressed the facts from the Department. He therefore held that the proviso to Section 73 (1) is invokable. He further held that penalty under Section 78 is imposable as the short payment was a result of suppression of facts by the appellant . 5. Learned Representative of the appellant submits that the difference occurred due to an error in their calculation and there was no intention to evade payment of service tax. As soon as the audit had pointed out the mistake, they had paid the differential service tax along with interest immediately even before the show cause notice was issued to them. He asserted that the service tax is evaded without any malafide intention on his part. He further argued that they had a turnover around four hundred crores and they had no intention to evade a tax of few lakhs of rupees. He therefore argued that the Learned Commissioner (Appeals) had erred in upholding t

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Court of Delhi in the case of Shiva Alloys Pvt. Ltd., [2018-TIOL-988-HC-DEL-CX] in which the Hon ble High Court had held the payment of duty, whether made before or after issuing of show cause notice, is not determinative and relevant factor for deciding whether or not penalty should be imposed. He also relied on the order of the CESTAT, Chennai in the case of Cholamandalam MS General Insurance Company Limited decided by Final Order No. 42719/2017 by CESTAT-Chennai, and it was held as follows: When the value of services is reflected in the statutory returns on the lower side but subsequently stand detected by the Revenue on the higher side, the same leads to inevitable conclusion that such a lower value was being reflected in the statutory records/returns with a malafide intention to evade payment of service tax. If that be so, the benefit of section 80 as contended by the appellants, cannot be extended to them. The provisions of section 73 also makes it clear that in case of suppressi

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. I have considered the arguments of both sides and perused the records. 8. There is no dispute on the facts of the case, that the appellant had declared a lower value in their returns than the actual value of services rendered by them and when this was pointed by the audit, they paid the differential tax along with applicable interest. The only question is of penalty under Section 78. This mandatory penalty is imposable under 5 conditions a) fraud b) collusion c) willful mis-statement d) suppression of facts e) contravention of any provisions of this Chapter or of the rules made thereunder with intent to evade payment of service tax. Of these five elements, the allegation in the present case is the suppression of the fact inasmuch as the appellant suppressed the true value of the services rendered by them and declared a lower value in ST-3 returns. I find that in an identical case in respect of the Cholamandalam MS General Insurance Company Ld., and CESTATChennai, had held that not re

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2018 (7) TMI 511 – AUTHORITY FOR ADVANCE RULING – MAHARASHTRA – 2018 (14) G. S. T. L. 571 (App. A. A. R. – GST) – Levy of GST – job-work – Supply of coal or any other inputs on a job work basis by JSL to JEL – Supply of power by JEL to JSL – Job work charges payable to JEL by JSL – whether the transaction between Appellant and JSL qualifies as 'Job Work'?.
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Whether the processing of goods belonging to another person qualifies as job work even if it amounts to manufacture?
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Held that:- Since M/s JSL are not the applicant in the proceedings, the ruling sought by M/s JEL on behalf of M/s JSL was not entertained. In respect of ruling sought by the applicant i.e. M/s JEL regarding conversion of coal (to be supplied by M/s JSL) into electricity, the Authority decided the same as supply of goods and not as job work. The main ground for decision of the Authority lies in the fact that definition of Job Work covers 'process and Treatment' on goods, whereas in the instant case the ope

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L for undertaking process on the same. Rather they are proposing to procure the steam coal which are inputs for the power plant of M/s JEL, the job worker and Intend to avail the credit of duty on the same which is otherwise not available to M/s JEL as their final product, i.e. electricity, does not fall in the ambit of the GST law – Assuming that the steam coal is also an input for M/s JSL as the same is utilized in the manufacture of Electricity which is finally used In the manufacture of final products of M/s JSL, the question arises how the requirements of Section 143 are met with regard to bringing back the Inputs after process/treatment on the inputs, as the inputs in this case are consumed in making electricity.
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The activity undertaken by M/s JEL to convert Coal, to be supplied by M/s JSL, in electricity is not covered under the definition of Job work in terms of the CGST Act. Since goods supplied by M/s JSL will be utilized by M/s JEL in manufacture of new commodity i.e.

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ce to the CGST Act would also mean a reference to the same provisions under the MGST Act. The present appeal has been filed under Section 100 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 M/s JSW Energy Limited, (herein after referred to as the "Appellant") who has preferred appeal against the Advance Ruling No. GST-ARA-05/2017/B-04 dated 05.03.2018. FACTS OF THE CASE A. JSW Energy Limited, (hereinafter referred to as "the Appellant") is engaged in the business of power generation and having Goods and Services Tax ('GST') Registration NO.27AAACJ8109N1Z8. B. JSW Steel Limited ("JSL"), having GST Registration No.27AAAG4323N1ZG is engaged in manufacture and supply of steel. The manufacturing activity undertaken by JSL requires power on a continuous and dedicated basis. For the said purpose, JSL and the Appellant (both being rela

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1 to the Appeal. The power generated from the aforesaid process on inputs will be supplied back to JSL for which the Appellant would be receiving job work charges as per the rate that would be agreed as per the Job Work Arrangement. During the whole process under the Job Work Agreement, the title In the inputs vest with JSL along with the power generated with the use of such inputs. In addition to power, fly ash and other resultant products generated at power plant using the Inputs will also vest with JSL and the Appellant will have no ownership in such resultant products. E. The Appellant had approached the Advance Ruling Authority (AAR) for seeking an advance ruling under Section 95(a) of the CGST Act, for determination of the applicability of GST on the following issues [The copy of the application filed before the AAR was enclosed as Exhibit – 2 to the Appeal) – I. Supply of coal or any other inputs on a job work basis by JSL to JEL II. Supply of power by JEL to JSL III. Job work c

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Impugned Order, relying on the decision of Manganese Ore India Ltd. V. State of M.P. [(2017) 1 SSC 81] has held that intent of the legislation is not to cover such 'treatment or process' into the ambit of the 'job work' which results into a distinct commodity and thereby amounting to manufacture. iii. The judgments of the courts, relied upon by the Appellant, in relation to job work under the erstwhile regime have been negated on the premise that all the judgments quoted in the application and the additional written submissions are in the context of input tax credit which is not the issue in the current facts. iv. Since JEL and JSL are related parties, any supplies made between them, even without consideration will be subject to GST. The Impugned Order has not responded on the GST implication in respect of the coal and other inputs supplied by the JSL to Appellant on the basis that the transaction pertains to GST liability of JSL and not of Appellant. Being aggrieved b

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er does not dispute the fact that the conditions stated above are getting fulfilled in respect of the transaction between JSL and the Appellant, except condition (i) as stated above. The entire edifice on which the Impugned Order stands is that the resultant product, namely Electricity, is a distinct commodity which is not identifiable with the inputs, hence such activity will be covered under 'manufacture' and being a manufacturing activity, it will not qualify as 'job work'. The relevant extract of the Impugned Order is reproduced below: – Page 9 of the Impugned Order ………..It is very apparent that the goods which are received after job work are in no way identifiable with the goods which were sent for job work. Electricity is a totally new commodity which will be delivered to JSL. To ascertain whether conversion of coal into electricity would tantamount to being 'Job Work', we need to examine the relevant provisions under the GST. …….. &hel

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ovided for the definition of 'job work' as well as 'manufacture', the meaning as understood by the definition of 'manufacture' cannot be read into the words 'treatment or process' as found in the definition of 'job work'. 'Treatment', 'Process' and 'Manufacture' are three different activities recognised by the Legislature. The intent of the Legislature is to restrict the scope of 'job work' to 'treatment' or 'process' and not to extend the same to manufacture. We need not deliberate more on the issue as the emergence of a distinct commodity is very obvious and therefore beyond the applicability of the definition of 'job work' under the GST Act" 4. The Appellant submits that in order to evaluate the terms 'job work' and 'manufacture' reference is made to the definition of 'Job Work' and 'Manufacture' under CGST Act- I. Section 2(68) of the CGST Act defines

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hen it falls within the ambit of manufacture. Therefore, the way terms have been defined under the CGST Act, manufacturing activity is a sub-set of job work. That is to say if a person undertakes processing of raw material / inputs belonging to another person then the said activity would qualify as job work, which if results in emergence of new product, will also be manufacturing activity. Hence, the term 'job work' and 'manufacture' are not mutually exclusive, as is the meaning sought to be given in the Impugned Order. Interpretation adopted in the Impugned Order is contrary to clarification and FAQ issued by Central Board of Excise and Customs ('CBEC') [Renamed as Central board of Indirect tax and Customs] 7. The Appellant would also like to submit that the Impugned order is in contradiction to the clarifications and explanations provided by CBEC which is the nodal national agency inter-alia responsible for administering GST in India. 8. The Impugned Order has

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e goods belongs is called 'principal'. This definition is much wider than the one given in Notification No. 214/86 – CE dated 23rd March 1986. In the said notification, job work has been defined in such a manner so as to ensure that the activity of job work must amount to manufacture. Thus, the definition of job work itself reflects the change in basic scheme of taxation relating to job work In the proposed GST regime. " 10. The Appellant further relies on the clarification issued by CBEC wherein it has been clearly mentioned that job work is an activity which may or may not tantamount to manufacture but still such process or treatment will qualify as job work subject to fulfillment of other conditions prescribed under the CGST Act and rules made thereof. A copy of the clarification issued by CBEC is enclosed with the Appeal as Exhibit – 6. The relevant extract is reproduced herein below: "Job-work sector constitutes a significant industry in Indian economy. It Includ

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the principal and the job-worker." 11. Given the above, it is evident that CBEC itself emphasize on the widening of the scope of job work under the GST Regime which inter-alia includes every kind of processing activity, whether resulting into manufacture or not. Therefore, taking any contrary view would lead to an incongruous situation which is against the explanations and clarification provided by; the CBEC and does not seem to be intent of the Legislature. FINDING CONTRARY TO SETTLED LAW 12. The Impugned Order is also contrary to the settled position by the judiciary on the issue in dispute. It is a well settled position in law inter-alia in terms of the judgment of the Hon'ble Supreme Court and Hon'ble High Court in Ujagar Prints Etc. vs. Union of India and Others (1988 (38) E.LT. 535 (S.C.)), Harrison Synthetic Bristles vs Collector of Central Excise, Bombay (1997 (95) E.LT. 9 (S.C.)) and Sunbel Alloys Co India Ltd. vs Union of India (2015 (316) E.LT. 353 (Bom.)) indi

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credit envisages that duty/tax paid on the input/input services will be available for discharge of duty liability on the finished products. It is not in dispute that the inputs were used in the fabrication/assembly of the finished products. Similarly, it is also not in dispute thot finished products did emerge at the job-workers' premises. In these circumstances, the conclusion drawn by the adjudicating authority that there is no job work Involved In the present case Is a contradiction in terms. A job work might amount to "manufacture" or might not amount to "manufacture". In many instances the job work results In production of a new commodity. For example, in the case of textile fabrics, a Job-worker undertaking the process of bleaching or dyeing of fabrics, new products namely, dyed/bleached fabrics come into existence. Thus, the activities amount "manufacture". Similarly, In the case of a bus body built on a chassis, the activity amounts to "m

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bunal upheld findings of the First Appellant Authority that job worker may undertake an activity which results in manufacture. The relevant extract of the judgment is reproduced below: "11. We also find that the first appellate authority has correctly enunciated the law as to the activity of job work as to how it should be understood and the valuation of the said goods to be done. We reproduce Paragraphs 15 and 16. "15. A job worker may undertake manufacturing of excisable goods on account of others from the raw material supplied to him free of cost, and on return of the goods so manufactured to them he takes job charges i.e. manufacturing expenses plus his manufacturing profits. In some cases, the job worker also uses some of materials of his own and includes their cost in the job charge. After job work is done the excisable goods so manufactured may also be delivered to their agents, or buyers as per their instructions. Since the duty of excise is on manufacture of excisabl

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7 (Tri.- Delhi)) Sanghl Industries Limited vs CCE, Rajkot (2006(206) ELT 575 (Tri.- Delhi)) Sanghi Industries Limited vs CCE, Rajkot (2014(302) ELT 564 (Trl.- Ahmd.)) 18. The above judgments cover Instances where materials (such as naphtha, light diesel oil, furnace oil, etc.) were supplied to the job worker for carrying out a specified process for the purpose of generation of electricity. The relevant extract of the High Court decision in Indorama Textiles Ltd (supra) is reproduced below where the Issues of generation of electricity under a job work model is not even disputed by the Authorities – "8. The fact of electricity being intermediate goods used in manufacture of final product by Respondent No. 1 is not in dispute before us. It is nowhere contended that M/s. IRSL cannot be a job worker and generation of electricity cannot be outsourced. When it can be outsourced, it also follows that Respondent No. 1 need not have a captive power plant Only contention is fuel oil is not r

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not provide for Restrictive Meaning of the word 'process' used in the Definition of Job Work 20. The Impugned Order has held that the word 'process' used in the definition of job work has to be read narrowly so as to exclude activities resulting in manufacture. The Appellant submits that wherever the intention of the law maker is to give a restricted meaning to words used in the definition, the same is either appropriately stated in the definition itself or in any other relevant section of the Act with specific wording to that effect. It is submitted that the CGST Act and the regulations do not in any form or manner stipulate or contemplate to derive a different meaning for the word 'process' when used for 'job work' and when used in 'manufacture' which clearly indicate that the 'process' is to be read without any restrictive meaning. Reference can be made to the definition of 'mixed supply' under the CGST Act which clearly exclud

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ppellant submits that since the terms 'treatment or 'process' have not been defined under the GST legislation, reference is sought to the dictionary meaning which explain the said terms and are reproduced as follows: Process a natural or involuntary operation or series of changes; handle or deal with by a particular process (The Oxford English Reference Dictionary 1995 pg 1152) a systematic series of actions directed to some end (Webster's Encyclopaedic Unabridged Dictionary of English Language pg. 1147) Treatment Subjection to the action of a chemical, physical or biological agent (The Oxford English Reference Dictionary 1995 pg. 1534 ) Subjection to some agent or action (Webster's Encyclopaedic Unabridged Dictionary of English Language pg. 1509) 24. Reference is also sought to judicial precedents wherein the aforesaid terms have been explained. In the matter of Collector of Central Excise vs Rajasthan State Chemicals Works (1991(55) E.L.T. 444(SC)), the Supreme Co

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s which consists only in handling and there may be a process which involves no handling or not merely handling but use or also use. It may be a process involving the handling of the material and it need not be a process involving the use of material… 25. In light of the above cited meanings and judicial interpretation, it is submitted that the term process is wide enough to cover even a mere handling of materials. Considering the scope of the said term, it is evident that the activities proposed to be carried out by the Appellant would fall within the ambit of the term 'process' or 'treatment' even though it amounts to manufacture. Reliance on the Decision of Hon'ble Supreme Court in Manganese Ore India Limited v. State of M.P. ((2017) 1 SSC 81 ) is Erroneous 26. The Impugned Order considers and hinges on various extraneous factors and aspects, none of which have any bearing whatsoever on the basic legal proposition with respect to the facts of the present matter.

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Ltd vs. DGFT (2016 (3 36) ELT 625 (Del))it was held that it is a settled law that precedent decisions are binding only when factual situation therein fits case under decision. Further, the observations of Courts must be read in the context in which they appear to have been stated. 29. The factual matrix in the Manganese Ores India Limited (Supra) can clearly be distinguished and differentiated from the factual scenario in the present case. In this regard, it is noteworthy that in the facts of Manganese Ores India Limited (Supra) the issue before the Hon'ble Supreme Court was whether the activities employed by the appellants for conversion of mineral ores would be covered by the word ''processing" used In explanation (b) to section 3(1) of Madhya Pradesh Electricity Duty Act, 1949, which defined mine to have the meaning provided to It under the Mines Act, 1952. The said definition is as under: "Mine" means a mine to which the Mines Act, 1952 (No. 35 of 1952) a

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in the same judgment the Hon'ble Apex Court held that the word 'processing' can have a wider meaning which would also include manufacturing. However, in the context of that case the word 'processing' has to be interpreted as per the Mines Act, 1952 and therefore will be restricted to the sense conveyed by the words 'crushing', 'treating' and 'transporting'. The relevant extracts are reproduced below- "…..the word "minerals" used in the aforesaid Explanation under the Act would have reference to the mineral which is mined and is then crushed, processed, treated or transported. The word "processing" used in the Explanation has to be interpreted in the context and for the purpose of the said item. Process can be given a wide or a narrow meaning. In the context in which it is used in the Explanation, we are disposed to think that it must be given a meaning which emerges when we apply the rule of noscitur a sociis which

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s the word 'Manufacturing services'. 34. The applicable rate of tax in respect of services are provided in the Notification No. 11/ 2017 -Central Tax (Rate) dated 28.06.2017 (as amended from time to time) ('Rate Notification'). For certain specified job work services, the applicable HSN Code under the Rate Notification is '9988'. SI No. Chapter, Section or "heading Description of Service Rate (per cent.) Condition 26 Heading 9988 (Manufacturing services on physical inputs (goods) by owned others) (i) Services by way of job work in relation to- (a)…(e) (ea) manufacture of leather goods or foot wear falling under Chapter 42 or 64 in the First Schedule to the Customs Tariff Act, 1975 (51of 1975) respectively; (f) all food and food products falling under Chapters 1 to 22 In the First Schedule to the Customs Tariff Act, 1975 (51of 1975); (g)….; (h) manufacture of clay bricks falling under tariff Item 69010010 In the First Schedule to the Customs Tariff Act,

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the Impugned Order holding that proposed activity of the Appellant does not amount to job work since it amounts to manufacture is bad in law and must be set aside. 36. In view of the various submissions made above and on the harmonious reading of the CBEC clarifications, judgments cited in earlier paragraphs to this Appeal, definitions under CGST Act and dictionary meanings of the relevant words, it is submitted that- (i) 'Job Work' under GST has been given a wider meaning as compared to the earlier regime. (ii) Even under the erstwhile regime, 'Job Work' covered manufacture and even under GST regime, it covers manufacture as provided in the CBEC clarification. (iii) Process undertaken on goods belonging to another person is 'Job Work', independent of whether the said process amounts to manufacture or otherwise. (iv) There is no restriction under GST law that treatment or process that amounts to manufacture cannot be covered under 'Job Work'. In-fact, th

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ity with different name and use, thereby rendering the entire process/activities undertaken by the appellant as manufacture in terms of the definition as provided under Section 2(72) of the CGST Act, 2017. Thus, the process/treatment performed by the appellant on the coal supplied by JSL would not be covered under the Job work. The Appellant's representative, however, differed with the ruling passed by AAR and argued that as per the provision of Section 2(68) of the CGST Act, 2017 "Job work" means any treatment or process undertaken by a person on goods belonging to another registered person and the expression "Job worker" shall be construed accordingly. Thus any process/activity undertaken by a person would qualify as job work if all of the following conditions are fulfilled and consequently the Principal will be allowed to send the goods without payment of tax viz. a. Treatment or process should be undertaken by a person; b. Such treatment or process should be

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to whom the goods belong is called 'Principal'; (iv) That Job work sector includes outsourced activities that may or may not culminate into manufacture The appellant in their support referred to 2nd Edition : 31st March, 2017 (updated as on 1st January, 2018 of FAQ on GST issued by CBIC and the clarification issued by CBEC on Job work) The appellant further deposed that the impugned order is contrary to the Settled position by the Judiciary on 'Job work' relying on the following judgment (1) Ujagar Prints Etc. Vs. Union of India & Others (Supreme Court) , – (2) Harrison Synthetic Bristles Vs. Collector of Central Excise Bombay (Supreme Court) ; (3) Sunbel Alloys Co. India Ltd. Vs. Union of India) Bombay High Court) (4) Eaton Fluid Power Ltd. Vs. Commissioner of Central Excise, Pune (Tri- Mumbai) (5) Commr. Of C.Ex. Mumbai – IV Vs. Ruby Mills Ltd. (Tri- Mumbai) The representative further relied on the following judgement regarding generation of electricity being int

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hers. During the course of hearing, when being asked about the present system for supply of electricity to their manufacturing units and whether they have any captive coal-run power plant in their manufacturing units for generation and supply of electricity, the appellant's representative deposed that they would be making further submissions in this case regarding the current power supply arrangement to M/s. JSL and whether M/s. JSL have any captive Coal fired power plant units in any of their manufacturing premises for generation of electricity or otherwise. Also when the Departmental representative argued that coal is not specified as import products for the export of Hot Rolled Non Alloy Steel Plates /Sheets/hoops & Strips under Export Code C508 as per SION specified by DGFT, the appellant's representative deposed that they were very much sure about the existence of coal in the import products list for the export of Hot Rolled Non Alloy Steel Plates /Sheets/hoops & S

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ard Input Output Norms specified as per the Import Export Policy. The jurisdictional officer deposed that M/s. JSL are not having 'in-house coal fired power plant' for production of electricity for captive consumption and hence coal cannot be considered as input and hence cannot be sent for further processing under Job work procedure without payment of applicable tax. He further deposed that as per the procedure of the Job work under CGST Act, 2017, goods belonging to another registered person are subjected to some treatment or process and are required to be sent back to the 'Principal' within a specified time after the completion of the Job work or otherwise. Whereas in the instant case, the coal to be supplied by the 'Principal' will be used by the Job worker for the generation of electricity and the ultimate goods i.e. electricity will be supplied back to the 'Principal' and not the inputs which have been treated upon or processed upon by the Job work

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d that the Power Plant owned by them where the proposed Job work activity on the coal supplied by M/s. JSL Is to be undertaken Is a Captive Power Plant of JSW group. In respect of this, the appellant have enclosed the following documents (i) A copy of the Board Resolutions dated 03.03.2011 wherein a resolution was passed for seeking approval to make units III and/or IV captive units of Ispat Industries. The said Ispat industries is currently the Dolvl, Maharashtra Plant of JSW Steel Limited (JSL). (ii) A copy of the letter dated 26.04.2011 written to the Maharashtra State Electricity Distribution Co. Ltd. for the purpose of captive power plant. (iii) A copy of the letter dated 20.04.2012 wherein open access permission was provided by the Maharashtra State Electricity Distribution Co. Ltd. for wheeling of power for the captive power plant at Jaigad, Ratnagiri. (2) The appellant Inter-alla further submitted that Coal is one of the important and integral Inputs used by JSL for the manufac

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rse or furtherance of business. To substantiate this claim, they cited various court and tribunal judgments. (7) In para 5.9,they relied upon various Courts and tribunals judgments wherein credit have been allowed on inputs which have been used in the generation of electricity which in turn have been used to manufacture final products. (8) In para 5.10, they further submitted that even in the context of erstwhile definition of inputs, coal or any other inputs for generation of electricity (which is further used to manufacture an entirely different products) have been held to qualify as inputs for over two decades. (9) In para 6.5, they inter-alia submitted that resultant intermediate goods may be different from the inputs sent by the Principal. For this, they cited following court judgment where job work has been accepted even when the identity of the inputs have been lost, when the intermediary goods are received back from the job worker. (a) Prestige Engineering (India) Ltd. V/s. Col

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main ground for decision of the Authority lies in the fact that definition of Job Work covers 'process and Treatment' on goods, whereas in the instant case the operations carried out by M/s JEL are beyond the process and treatment, and thus not covered under the definition of Job Work. 42. The Appellant, through written submissions and during personal hearing, have drawn our attention towards various judgments and erstwhile juridical position of Job Work, summarizing that manufacturing may or may not take place during a job work activity. The erstwhile Notification No. 214/86 under Central Excise Act also exempted the goods where manufacturing took place. Under the GST regime as argued also before us and seen from the definition per se, the scope of Job work appears to be wider. Accordingly, we are not inclined to concur with the views of AAR and we hold the view that Job work may or may not involve manufacturing 43 The moot question before us to decide is therefore is whether

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ilized in manufacture of intermediate goods used in the manufacture of final product. In this case, M/s. JSL are manufacture of Steel and steel products and M/s JEL are engaged in production of electricity, using coal as main input we have gone through the citations and note that in none of these the central issue of decision was on the subject of JOB WORK- All these judgments pertain to the admissibility of the Cenvat/Modvat credit on the goods utilized for manufacture of intermediate goods, which is not the case here. The Applicant had not gone before the AAR on issue of admissibility of credit of tax paid on the inputs. The impugned application pertains to the consideration of activity as Job work, and we would be restrict ourselves to the issue involved. 45. In order to elaborate further, we reproduce the definition of 'Job Work' under CGST/MGST Act as under: 'Job work means any treatment or process undertaken by a person on goods belonging to another registered person&

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l will send the inputs to the job worker for conducting any treatment/process/ which may, or may not amount to manufacture) and shall bring back the same after completion of job work or otherwise Therefore the goods sent to the job worker should be the Inputs of the Principal here. M/s JSL are proposing to be the Principal, so the Inputs should belong to them. 46 During the course of the hearing on 19 06.2018, the Departmental Representative had raised an issue that the goods being proposed to be sent to the Job Worker M/s JEL, i.e. coal, are the Inputs for M/s JEL for their final product. i.e Electricity and not the Inputs for the Principal, i.e. M/s JSL as they are manufacturer of Steel and not power. Also. Coal is not mentioned in their SION(Standard Input Output Norms) The Advocate for the appellant opposed the same and maintained that Coal is mentioned In the SION for the final products of M/s JSL, and that they would produce a copy of same during their additional submission. Howe

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and Intend to avail the credit of duty on the same which is otherwise not available to M/s JEL as their final product, i.e. electricity, does not fall in the ambit of the GST law. 47. Assuming that the steam coal is also an input for M/s JSL as the same is utilized in the manufacture of Electricity which is finally used In the manufacture of final products of M/s JSL, the question arises how the requirements of Section 143 are met with regard to bringing back the Inputs after process/treatment on the inputs, as the inputs in this case are consumed in making electricity. 48. Further, we find from the details of the permissions received from Maharashtra State Electricity Distribution Co. Ltd.(MSEDCL) that M/s JSL is to be supplied electricity through the distribution system of MSEDCL, which means that electricity, being the intermediary goods after processing of the inputcoal, is being uploaded by M/s JEL to the MSEDCL power grid and this grid In turn Is being used to obtain the electric

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on of the Section 143(1)(a), namely to bring back the inputs to the premises of the principal, fulfilled. 49. The facts of the case cited by the Appellant in the matter of M/s Essar Steel Ltd. said to having similar arrangements are different from this case, as in that matter the entire electricity generated in was first directly transmitted to M/s Essar. Only the excess electricity after being used for manufacture, was being exported to Grid. Thus, in the case of Essar, the supply of inputs after processing was not dependent on a third person or entity till the goods were returned back to the Principal in full. In case of M/s Kirloskar Ferrous Industries Ltd., the generation of electricity was within the premises of the principal. The cases cited therefore are distinguishable. 50. To take the argument of eligibility of the process to be job-work, we rely on the Hon'ble Supreme Court's pronouncement in the matter of M/s Prestige Engineering (India) v/s Collector of C.Ex. Meerut

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e expression 'job work' mean? On this question, the Explanation is not of much assistance. The Concise Oxford Dictionary assigns several meanings to the expression job' but the relevant meaning having regard to the present context is "a piece of work especially one done for hire or profit". The expression job work' is assigned the following meaning . "work done and paid for the job". The Notification, It is evident, was conceived in the interest of small manufacturers undertaking job-works. The idea behind the Notification was to help the job-workers – persons who contributed mainly their labour and skill, though done with the help of tools, gadgets or machinery, as the case may be. The Notification was not intended to benefit those who contributed their own material to the articles supplied by the customer and manufactured different goods. We must hasten to add that addition or application of minor items by the job-worker would not detract from the

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ssed by him (job worker) considering the fact that typically the Job workers are small persons who are unable to comply with the discrete provisions of the law. Therefore, we hold that job work on the scale as in this case before us could not have been envisaged when the provisions were outlined. 52. In the matter before us, the appellant have not submitted the following: (i) The agreement or proposed agreement between M/s JSL and M/s JEL for the process of job work to understand about the quantity and value of the inputs being supplied by the principal and the amount and quantity of the inputs/ material being used by the job worker to the inputs supplied by the principal to carry out the job work process. (ii) The detail manufacturing process of M/s JEL for production of Electricity mentioning the name, quantity and value of the inputs. (iii) The procedure/process for accounting for the Inputs received from M/s JSL by M/s JEL and co-relation thereof with the goods supplied after job w

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steel pipes by itself or gets them fitted In another unit. Thereafter, adopters are fitted on the sides of the cops and then the plastic sleeves are fitted on the cylinders of the cops. This is not a case where the rings and the adopters and sleeves are supplied by Modipon. it is not suggested that the value of rings, adopters and sleeves is very small vis a vis the value of steel pipes. The additions made by the appellant are not minor additions; they are of a substantial nature and of considerable value. Except the pipes, all other items which go into the manufacture of cops are either purchased or procured by the appellant himself and he manufactures the cops out of them The work done by him cannot be characterised as a job-work If all the requisite rings, adopters and sleeves hud also been supplied by Modlpon, it could probably have been said that the appellant's work Is In the nature of job-work. But that is not the case here The Tribunal was, therefore, right in holding that

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pinion that the answer is negative in view of the Apex Court judgment as only minor additions by the job worker on the inputs provided by the principal is envisaged in the law. 54. The various judgments relied upon by the Appellant on various issues are not of much help to them on following grounds: (i) None of the said judgments are under the statute in which the Advance Ruling was sought and appeal was preferred against the said Ruling. (ii) None of the judgments involved any decision about any activity to be job work or not, except in the matter of M/s Prestige Engineering(lndia) Ltd. (iii) The facts and circumstances of the cases cited by the appellant were different from the facts of the instant case. 55. We would also like to distinguish the said judgments as under: (i) Essar Steel Ltd. v/s Commissioner of C. Ex. Surat-I, 2001(129) ELT 213(Tri. Mum.): The issue in the above case was an interpretation of the term 'within the factory of production'. There is no such clause

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e was not whether the activity is a job work or not. Also, it was never contended by the revenue that the said activity is not job work so the Court had no occasion to decide the same ( Para 8 of the order). As such the decision primarily is on allowance of credit and not on whether the same is job work or not. Also, the captive power plant was with M/s Indorama Synthetics Ltd., separated by just a wall by M/s Indorama Textiles Ltd. and hence the return of goods after job work was not interrupted/regulated by a third party. (iii) Vikram Cement V/s Commissioner of Central Excise, Indore.2006(194)ELT 3(S.C.): The dispute before the Larger Bench of the Apex Court was whether credit on explosives used in quarrying limestone which was in turn used to manufacture of cement was available as the limestone mines were outside the factory and the Court had to interpret the words ' within the factory of production' occurring in Rule 57B. As can be seen from the above text, the issue in thi

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of electricity, which was the basis on which the judgement was given, as is clearly evident from Paragraph 22 of the order. Also, as per para 2 of the said judgment- "The principal raw material for manufacture of petrochemical products is Naphtha which is procured from India Oil Corporation or other indigenous oil refineries or by direct import from overseas on payment of duty. A small portion of the Naphtha, either as such, or after being partially processed, is also sent to a power plant for generation of electricity or steam". In the instant case, the goods proposed to be sent for job work(Steam Coal) are not the raw material of the Principal. (v) SANGHI INDUSTRIES 2006 (206) ELT 575 ( Tri Del) / SANGHI INDUSTRIES ( 2014 302 ELT 564) The issue whether the power plant was a job worker or not was not presented before the Tribunal for adjudication. The issue was of admissibility of credit. Also as in the case of Vikram Cement (cited supra), the primary issue was the interpre

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within the premises of the Principal and all the inputs viz. Atmospheric Air, Industrial water and Electricity used for manufacture of Industrial gases belonged to the principal and were supplied by the principal. In the instant case, it is not possible for the principal to provide all the major inputs to the job worker as the Air and water, constituting substantial quantity and value, belongs to M/s JEL as the proposed activity will be carried out in the premises of M/s JEL. Also, we need to note here that the advance ruling in other States are not binding on us nor do they have any precedential value We also observe in all other judgments, the central issue was never the applicability of job work on the some activity being undertaken. It is only in the matter of M/s Prestige Engineering (India) Ltd., Apex Court has dealt with the issue in detail, as there were divergent opinions/orders by Tribunals and High Courts. 56. Thus, the Appellant has not provided documentary evidences, durin

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under the definition of Job work in terms of the CGST Act. Since goods supplied by M/s JSL will be utilized by M/s JEL in manufacture of new commodity i.e. electricity (though attracting NIL rate of duty), the process is manufacture and the same will be considered as supply of goods and not service. 57. Accordingly, we pass the following order: ORDER In view of the above discussions and in terms of Section 101(1) of the CGST Act 2017 and MGST Act 2017, we hold that- The processing undertaken by a person on the goods belonging to another registered person qualifies as job work even if it amounts to manufacture provided all the requirements under the CGST/MGST Act in this behalf, are met with. The Transaction between Appellant and M/s JSL does not qualify for job work under Section 2(68) and section 143 of the said Acts. The Order of AAR Stands modified in terms of the above order. The appeal filed by M/s JEL stands dismissed with above order – Case laws – Decisions – Judgements – Ord

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2018 (7) TMI 702 – CESTAT CHENNAI – TMI – CENVAT Credit – input services for providing output service namely sponsorship service – The department was of the view that appellant being not eligible to pay service tax for sponsorship services and credit cannot be allowed – The demand arises out of the basic allegation that the appellant has wrongly paid the service tax on sponsorship service when actually service recipient ought to have paid.
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Held that:- The department has no case that the appellant has not paid the service tax on these input services nor is there a case that they are not used for providing sponsorship service. The only allegation is that the appellant ought not to have collected the service tax on sponsorship service. Generally, it is the output service provider who has to pay the service tax and in some cases like sponsorship services, the Service Tax Rules provide that the liability to pay service tax is upon the service recipient. Appellant has collected servic

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icial) Shri T.R. Ramesh, Advocate for the Appellant Shri R. Subramaniam, AC (AR) for the Respondent ORDER Brief facts are that the appellants is a publisher of newspapers The Hindu, Business Line and magazines such as Front Line and Sports Star and also engaged in providing various other services. During the course of audit, it was observed that the appellant had conducted various competitive programmes for kids and students in the field of painting and quiz competition etc. They had received sponsorship from various sponsors for conducting the above programme and collected service tax for the sponsorship services provided by them. It appeared that in terms of Rule 2(1)(d)(viii) of Service Tax Rules, 1994, the recipient of sponsorship service is to discharge the service tax liability. The appellant has thus wrongly collected the service tax on sponsorship service and paid the same to the Central Government. The department was of the view that appellant being not eligible to pay service

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tral Government. The department now alleges that the input services availed for providing the sponsorship services are not eligible for credit. Merely because the appellant had wrongly discharged the service tax on sponsorship services instead of the service recipient, the input services cannot be held to be ineligible for credit. Since the sponsorship services are taxable services, for which the input services were used by the appellant, the department has wrongly denied the credit. He submitted that there are several decision which have held that even though the process does not amount to manufacture, the credit availed on the inputs cannot be denied and the same analogy shall be applied to the facts of the present case. He relied upon the decision in the case of Vinayak Industries reported in 2003 (159) ELT 456. It is also pointed out by him that the department has not issued any show cause notice to the service recipient of the sponsorship services and the service tax on such servi

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the output services and therefore the credit availed is eligible. 3. The ld. AR Shri R.Subramaniam supported the findings in the impugned order. He submitted that the appellant is not liable to pay service tax on sponsorship services. The service recipient ought to have paid the same. The appellant has wrongly collected the service tax on sponsorship services and utilized the credit on various input services to discharge the payment of service on sponsorship service. Thus, the input services used for providing the output service namely sponsorship services are not eligible for credit. He relied on the decision of the Tribunal in the case of Jaipur IPL Cricket Pvt. Ltd. Vs. Commissioner of Service Tax, Mumbai – 2015 (38) STR 1193 (Tri. Mumbai). He adverted to para 3.20 and 3.21 of the adjudication order and submitted that the intention of the assessee to suppress the facts in an intelligent manipulative way to evade payment of service tax and utilization of inadmissible CENVAT credit b

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rship services, the Service Tax Rules provide that the liability to pay service tax is upon the service recipient. Appellant has collected service tax wrongly from service recipient and paid to Central Government instead of the service recipient paying it directly to Central Government for sponsorship services. For the mere same reason, it is alleged that the credit has been wrongly availed on various input services used for providing sponsorship services. In para 3.15 of the adjudication order, it is brought out that the appellant has declared the credit of service tax paid on input services in their ST-3 returns. Thus, the credit availed as well as the service tax paid has been correctly reflected in their ST-3 returns. Other than this allegation of wrongly paying the service tax on sponsorship service, I do not find any evidence of positive act of suppression of fact with intent to evade payment of service tax on the part of appellant. All the allegations stems out of the main alleg

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GST – States – 21/2018-State Tax – Dated:- 2-7-2018 – GOVERNMENT OF THE NATIONAL CAPITAL TERRITORY OF DELHI FINANCE (REVENUE-1) DEPARTMENT NOTIFICATION Delhi, the 2nd July, 2018 No. 21/2018-State Tax No. F. 3 (2)Fin(rev.-I)/2018-19/DS-VI/294.-In exercise of the powers conferred by section 164 of the Delhi Goods and Services Tax Act, 2017 (Delhi Act 03 of 2017), the Lt. Governor of National Capital Territory of Delhi, hereby makes the following rules further to amend the Delhi Goods and Services Tax Rules, 2017, namely:- (1) These rules may be called the Delhi Goods and Services Tax (Fourth Amendment) Rules, 2018. (2) Save as otherwise provided, they shall come into force from 18th April, 2018. 2. In the Delhi Goods and Services Tax Rules, 2017, – (i) in rule 89, for sub-rule (5), the following shall be substituted, namely:- (5). In the case of refund on account of inverted duty structure, refund of input tax credit shall be granted as per the following formula:- Maximum Refund Amount

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ad with section 20 of the Integrated Goods and Services Tax Act, 2017, shall be deposited in the Fund. (2) Where any amount, having been credited to the Fund, is ordered or directed to be paid to any claimant by the proper officer, appellate authority or court, the same shall be paid from the Fund. (3) Accounts of the Fund maintained by the Central Government shall be subject to audit by the Comptroller and Auditor General of India. (4) The Government shall, by an order, constitute a Standing Committee (hereinafter referred to as the Committee ) with a Chairman, a Vice-Chairman, a Member Secretary and such other members as it may deem fit and the Committee shall make recommendations for proper utilisation of the money credited to the Fund for welfare of the consumers. (5) (a) The Committee shall meet as and when necessary, generally four times in a year; (b) the Committee shall meet at such time and place as the Chairman, or in his absence, the Vice-Chairman of the Committee may deem f

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c) to require any applicant to allow entry and inspection of any premises, from which activities claimed to be for the welfare of consumers are stated to be carried on, to a duly authorised officer of the State Government, as the case may be; (d) to get the accounts of the applicants audited, for ensuring proper utilisation of the grant; (e) to require any applicant, in case of any default, or suppression of material information on his part, to refund in lump-sum along with accrued interest, the sanctioned grant to the Committee, and to be subject to prosecution under the Act; (f) to recover any sum due from any applicant in accordance with the provisions of the Act; (g) to require any applicant, or class of applicants to submit a periodical report, indicating proper utilisation of the grant; (h) to reject an application placed before it on account of factual inconsistency, or inaccuracy in material particulars; (i) to recommend minimum financial assistance, by way of grant to an appli

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fter its final adjudication; (d) for making available grants for any other purpose recommended by the Central Consumer Protection Council (as may be considered appropriate by the Committee); (e) for making available up to 50% of the funds credited to the Fund each year, for publicity/consumer awareness on GST, provided the availability of funds for consumer welfare activities of the Department of Consumer Affairs is not less than twenty five crore rupees per annum. Explanation.- For the purposes of this rule, (a) 'applicant' means, (i) the Central Government or State Government; (ii) regulatory authorities or autonomous bodies constituted under an Act of Parliament or the Legislature of a State or Union Territory; (iii) any agency or organization engaged in consumer welfare activities for a minimum period of three years, registered under the Companies Act, 2013 (18 of 2013) or under any other law for the time being in force; (iv) village or mandal or samiti or samiti level co-o

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section (1) of section 4 of the Consumer Protection Act, 1986 (68 of 1986), for promotion and protection of rights of consumers; (d) 'Committee' means the Committee constituted under sub-rule (4); (e) 'consumer' has the same meaning as assigned to it in clause (d) of sub-section (1) of section 2 of the Consumer Protection Act, 1986 (68 of 1986), and includes consumer of goods on which central tax has been paid; (f) Fund means the Consumer Welfare Fund established by the State Government under section 57 of the Delhi Goods and Services Tax Act, 2017 (03 of 2017); (g) 'proper officer' means the officer having the power under the Act to make an order that the whole or any part of the state tax is refundable; (iii) in FORM GST ITC-03, after entry 5 (e), for the instruction against ** , the following shall be substituted, namely:- ** The value of capital goods shall be the invoice value reduced by 1/60th per month or part thereof from the date of invoice ; (iv) after

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10 11 12 8 (a) Inputs held in stock (where invoice is available) 8 (b) Inputs contained in semi-finished or finished goods held in stock (where invoice is available) 8 (c) Capital goods/plant and machinery held in stock 8 (d) Inputs held in stock or inputs as contained in semi-finished /finished goods held in stock ( where invoice is not available) 9. Amount of tax payable and paid (based on Table 8) Sr.No. Description ITC reversible/Tax payable Tax paid along with application for cancellation of registration (GST REG- 16) Balance tax payable (3-4) Amount paid through debit to electronic cash ledger Amount paid through debit to electronic credit ledger Central Tax State/Union territory Tax Integrated Tax Cess 1 2 3 4 5 6 7 8 9 10 1. Central Tax 2. State/Union territory Tax 3. Integrated Tax 4. Cess 10. Interest, late fee payable and paid Description Amount payable Amount Paid 1 2 3 (I) Interest on account of (a) Integrated Tax (b) Central Tax (c) State/Union territory Tax (d) Cess (II

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while providing details of stock at Sl. No.8: (i) where the tax invoices related to the inputs held in stock or inputs contained in semi-finished or finished goods held in stock are not available, the registered person shall estimate the amount under sub-rule (3) of rule 44 based on prevailing market price of the goods; (ii) in case of capital goods/ plant and machinery, the value should be the invoice value reduced by 1/60th per month or part thereof from the date of invoice/purchase taking useful life as five years. 4. The details furnished in accordance with sub-rule (3) of rule 44 in the Table at Sl. No. 8 (against entry 8 (d)) shall be duly certified by a practicing chartered accountant or cost accountant. Copy of the certificate shall be uploaded while filing the details. ; (v) for FORM GST DRC-07, the following shall be substituted, namely:- FORM GST DRC-07 [See rule 142(5)] Summary of the order 1. Details of order – (a) Order No. (b) Order date (c) Tax period – 2. Issues involv

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GST – States – 26/2018-State Tax – Dated:- 2-7-2018 – No.J.21011/2/2018-TAX/Pt GOVERNMENT OF MIZORAM TAXATION DEPARTMENT …. NOTIFICATION No. 26/2018-State Tax Dated Aizawl the 2nd July, 2018 In exercise of the powers conferred by section 164 of the Mizoram Goods and Services Tax Act, 2017 (6 of 2017), the Government of Mizoram hereby makes the following rules further to amend the Mizoram Goods and Services Tax Rules, 2017, namely:- (1) These rules may be called the Mizoram Goods and Services Tax (Fifth Amendment) Rules, 2018. (2) Save as otherwise provided, they shall come into force on the date of their publication in the Official Gazette. 2. In the Mizoram Goods and Services Tax Rules, 2017, – (i) in rule 37, in sub-rule (1), after the proviso, the following proviso shall be inserted, namely:- Provided further that the value of supplies on account of any amount added in accordance with the provisions of clause (b) of sub-section (2) of section 15 shall be deemed to have been

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b-rule (4). (iv) with effect from 01st July, 2017, in rule 95, in sub-rule (3), for clause (a), the following shall be substituted, namely:- (a) the inward supplies of goods or services or both were received from a registered person against a tax invoice; ; (v) in rule 97, in sub-rule (1), after the proviso, the following proviso shall be inserted, namely:- Provided further that an amount equivalent to fifty per cent. of the amount of cess determined under sub-section (5) of section 54 read with section 11 of the Goods and Services Tax (Compensation to States) Act, 2017 (15 of 2017), shall be deposited in the Fund. ; (vi) in rule 133, for sub-rule (3), the following shall be substituted, namely:- (3) Where the Authority determines that a registered person has not passed on the benefit of the reduction in the rate of tax on the supply of goods or services or the benefit of input tax credit to the recipient by way of commensurate reduction in prices, the Authority may order- (a) reductio

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(vii) in rule 138, in sub-rule (14), after clause (n), the following clause shall be inserted, namely:- (o) where empty cylinders for packing of liquefied petroleum gas are being moved for reasons other than supply. ; (viii) in FORM GSTR-4, in the Instructions, for Sl. No. 10, the following shall be substituted, namely:- 10. For the tax periods July, 2017 to September, 2017, October, 2017 to December, 2017, January, 2018 to March, 2018 and April, 2018 to June, 2018, serial 4A of Table 4 shall not be furnished. ; (ix) with effect from 01st July, 2017, in FORM GST PCT-01, in PART B, (a) against Sl. No. 4, after entry (10), the following shall be inserted, namely:- (11) Sales Tax practitioner under existing law for a period of not less than five years (12) tax return preparer under existing law for a period of not less than five years ; (b) after the Consent , the following shall be inserted, namely:- Declaration I hereby declare that: (i) I am a citizen of India; (ii) I am a person of so

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ier/Details of invoices of inward supplies in case refund is claimed by recipient Tax paid GSTIN of the supplier No. Date Taxable Value Integrated Tax Central Tax State Tax /Union Territory Tax Cess 1 2 3 4 5 6 7 8 9 ; (xi) in FORM GST RFD-01A, in Annexure-1, (a) for Statement 1A, the following Statement shall be substituted, namely:- Statement 1A [see rule 89(2)(h)] Refund Type: ITC accumulated due to inverted tax structure [clause (ii) of first proviso to section 54(3)] Sl.No. Details of invoices of inward supplies received Tax paid on inward supplies Details of invoices of outward supplies issued Tax paid on outward supplies GSTIN of the supplier No. Date Taxable Value Integrated Tax Central Tax State Tax/Union territory Tax No. Date Taxable Value Integrated Tax Central Tax State Tax/Union territory Tax 1 2 3 4 5 6 7 8 9 10 11 12 13 14 ; (b) for Statement 5B, the following Statement shall be substituted, namely:- Statement 5B [see rule 89(2)(g)] Refund Type: On account of deemed exp

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GST – States – 28/2018-State Tax – Dated:- 2-7-2018 – No.J.21011/2(ii)/2018-TAX/Pt GOVERNMENT OF MIZORAM TAXATION DEPARTMENT …. NOTIFICATION No. 28/2018-State Tax Dated Aizawl the 2nd July, 2018 In exercise of the powers conferred by section 164 of the Mizoram Goods and Services Tax Act, 2017 (6 of 2017), the Governor of Mizoram hereby makes the following rules further to amend the Mizoram Goods and Services Tax Rules, 2017, namely:- (1) These rules may be called the Mizoram Goods and Services Tax (Sixth Amendment) Rules, 2018. (2) Save as otherwise provided in these rules, they shall come into force on the date of their publication in the Official Gazette. 2. In the Mizoram Goods and Services Tax Rules, 2017, – (i) in rule 58, afte

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er XVI. ; (ii) in rule 138C, after sub-rule (1), the following proviso shall be inserted, namely:- Provided that where the circumstances so warrant, the Commissioner, or any other officer authorised by him, may, on sufficient cause being shown, extend the time for recording of the final report in Part B of FORM EWB-03, for a further period not exceeding three days. Explanation.- The period of twenty four hours or, as the case may be, three days shall be counted from the midnight of the date on which the vehicle was intercepted. ; (iii) in rule 142, in sub-rule (5), after the words and figures of section 76 , the words and figures or section 129 or section 130 shall be inserted; (iv) after FORM GST ENR-01, the following FORM shall be inserte

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2018 (9) TMI 1641 – BOMBAY HIGH COURT – TMI – Unable to upload TRANS Form 1 – Input tax credit – Held that:- Circular No.39/13/2018-GST sets up a IT-Grievance Redressal Mechanism to address the grievance of the tax payers relating thereto. The petitioner would, therefore, withdraw this writ petition and approach this IT-Grievance Redressal Mechanism relying upon this Circular and request it to take a decision in terms therewith, but in accordance with law.
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Petition dismissed as withdrawn. – WRIT PETITION NO. 1226 OF 2018 Dated:- 2-7-2018 – S.C. DHARMADHIKARI & SMT. BHARATI H. DANGRE, JJ. Mr. Prakash Shah with Mr. Nikhil Rungta and Mr. Jas Sanghvi i/b P.K. Shetty for the Petitioners. Ms. Jyoti Chavan, AGP, for the Respondent Nos.

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glitch and as IT glitches or technical issues pertaining to GST portal are involved, then, the present Circular sets up a IT-Grievance Redressal Mechanism to address the grievance of the tax payers relating thereto. The petitioner would, therefore, withdraw this writ petition and approach this IT-Grievance Redressal Mechanism relying upon this Circular and request it to take a decision in terms therewith, but in accordance with law. 3. In the light of the statement made by Mr. Shah, we allow this writ petition to be withdrawn with liberty to approach this Redressal Mechanism, but we say nothing about its jurisdiction or authority and it is entirely for the mechanism evolved by the GST Council to then take a decision. We clarify that since t

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2018 (11) TMI 400 – AUTHORITY FOR ADVANCE RULING, ANDHRA PRADESH – 2018 (18) G. S. T. L. 851 (A. A. R. – GST) – Government authority or not – applicant undertakes transport studies, which are undertaken by third party vendors providing Consultancy Services on behalf of the applicant – whether functions of municipality or not – scope of Urban planning – N/N. 12/2017 of Central Tax (Rate), dated:28th June 2017, read with Notification No. 32/2017 of Central Tax (Rate), dated : 13th October 2017.
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Government authority – Held that:- AMRCL is a SPV which is set up vide Government of Andhra Pradesh G.O. Ms. 141 of MA &UD. The applicant has also submitted that it is 100% owned by state of A.P.; that it is answerable to Government of Andhra Pradesh; that its Chairman is the Principal Secretary. The Government of Andhra Pradesh, issued G.O. Rt.No: 599, MA&UD(H2) Department, dated 14.09.2015, in which, the Government of Andhra Pradesh has decided that the special purpose vehicle for Vijayaw

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part of urban planning at all the times and cities are planned in a wholistic manner – Urban Transportation also is a part of Urban Planning.
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All the activity is in the nature of urban transportation and urban planning and the same is covered under the purview of the functions of Municipality under article 243W read with Twelfth Schedule to the constitution of India, and the same fall within the purview of the aforesaid exemption notification 12/2017-Central Tax (Rate), dated : 28th June 2017.
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Ruling:- The applicant / AMRCL is a Government Authority as per Notification No. 12/2017-CT (Rate, dated 28.06.2017.
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The consultancy services for preparation of transport studies such as comprehensive mobility plan, transit oriented development plan, NMT plan and consultancy services of transaction advisors/preparation of DPRs comes within the purview of the functions of Municipality under article 243 read with Twelfth Schedule to the constitution of India, and accordingly, fall

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ransport Plan, and Non Motorized Transport plan and preparation of Detailed Project Reports (DPRs) of the Metro Rail Projects in Andhra Pradesh. The above activities of the applicant are undertaken by third party vendors providing Consultancy Services on behalf of the applicant. 2. The applicant has filed an application in Form ARA-01 dated 31.05.2018, for seeking advance ruling on following issues: Whether M/s. AMARAVATHI METRO RAIL CORPORATION LIMITED, GSTIN: 37AANCA9264G1Z8, is a Government authority as per the Notification No. 12/2017 of Central Tax (Rate), dated:28th June 2017, read with Notification No. 32/2017 of Central Tax (Rate), dated : 13th October 2017. Whether the consultancy services for preparation of transport studies such as comprehensive mobility plan, transit oriented development plan, NMT plan and consultancy services of transaction advisors/preparation of DPRs comes within the purview of the functions of Municipality under article 243W read with Twelfth Schedule t

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iscuss up the issue one by one. 4.2.1 It would be prudent to examine the definition of Government / Government entity as per the statute. In terms of notification 12/2017, dated 28th June 2017. governmental authority has the same meaning as assigned to it in the Explanation to clause (16) of section 2 of the Integrated Goods and Services Tax Act, 2017 (13 of 2017). As per clause (16) of section 2 of the Integrated Goods and Services Tax Act, 2017. governmental authority means an authority or a board or any other body,- (i) set up by an Act of Parliament or a State Legislature; or (ii) established by any Government, with ninety per cent or more participation by way of equity or control, to carry out any function entrusted to a municipality under article 243W of the Constitution; 4.2.2 We have observed that AMRCL is a SPV which is set up vide Government of Andhra Pradesh G.O. Ms. 141 of MA &UD. The applicant has also submitted that it is 100% owned by state of A.P.; that it is answer

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ipality under article 243W r/w Twelfth Schedule to the Constitution of India. The abstract of relevant provisions are reproduced hereunder: Article 243 W : Powers, authority and responsibilities of Municipalities, etc Subject to the provisions of this Constitution, the Legislature of a State may, by law, endow (a) the Municipalities with such powers and authority as may be necessary to enable them to function as institutions of self government and such law may contain provisions for the devolution of powers and responsibilities upon Municipalities, subject to such conditions as may be specified therein, with respect to (i) the preparation of plans for economic development and social justice; (ii) the performance of functions and the implementation of schemes as may be entrusted to them including those in relation to the matters listed in the Twelfth Schedule; (b) the Committees with such powers and authority as may be necessary to enable them to carry out the responsibilities conferred

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oriums 15. Cattle ponds, prevention of cruelty to animals 16. Regulation of slaughter houses and tanneries 17. Public amenities including street lighting, parking spaces, bus stops and public conveniences 18. Vital statistics including registration of births and deaths 4.3.2 Urban Planning is a function entrusted to Municipality under Article 243 W of the Constitution. The applicant has invited our attention to Ministry of Urban Development, Government of India in K-14011/07/2007/Metro/UT dt.29-08-2007, addressed to all the Chief Secretaries of the States and Union Territories, informing the decision that the urban transport and urban planning must go together and that urban transport is an integral part of urban development, which will help in ensuring that urban transport remains an integral part of urban planning at all the times and cities are planned in a wholistic manner. Therefore, we held that Urban Transportation also is a part of Urban Planning. 4.3.3 Further more, the propos

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2018 (9) TMI 693 – AUTHORITY FOR ADVANCE RULING, RAJASTHAN – 2018 (16) G. S. T. L. 623 (A. A. R. – GST) – Works Contract – Supply of goods or services – Turnkey EPC Contract – contract for Erection, Procurement and Commissioning of Solar Power Plant – Whether contract for Erection, Procurement and Commissioning of Solar Power Plant shall be classifiable as Supply of Goods or Supply of Services under the provisions of the Central Goods and Services Tax Act 2017 and Rajasthan State Goods and Services Tax Act 2017?
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If answer to the above question is supply of goods, then under which HSN Classification the said supply of solar power plant would fall and what shall be the rate of tax on it in accordance with the N/N. 01/2017-Central Tax 28-06-2017? – If the answer to the above question is supply of service, then under which HSN Classification the said supply of solar power plant would classify and what shall be the rate of tax in accordance with the N/N. 11/2017-Central Tax (Rate) ,d

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hift base from time to time or locate the plant elsewhere at frequent intervals – The Solar Power Plant cannot be shifted to any other place without dismantling the same. Further it is a tailor made system which cannot be sold as it is to the other person – Solar Power Plant includes civil work such as development of site, structure Structure for 110kv transmission , building cable trenches, foundation, civil work relating to invertors and control buildings, store rooms , canopies and such other civil structure and related activities as set out in Scope of work and the Technical Specifications. Civil structure cannot be dismantled and moved.
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Schedule II of Scope of work of Composite EPC Contract, clearly states that the “design and engineering of the project should be such that it is consistent with a design life of at least 25 years from the COD (commissioning date).” The applicant has himself agreed to be bound by this clause which reflects permanency of the instant Solar Powe

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chedule I of the Notification no. 1/2017 – Central Tax (Rate) both dated 28 June, 2017 and Entry 234 of Schedule I of the Notification no 1/2017 -State Tax (Rate) dated 29 June, 2017. EPC Contract for Solar Power plant comes under the purview of Works Contract as per Section 2(119) of GST Act – The contract for Erection, Procurement and Commissioning of Solar Power Plant falls under the ambit “Works Contract Services” (SAC 9954) of Notification no. 1 1/2017 Central Tax (Rate) dated 28 June, 2017 and attracts 18% rate of tax under IGST Act, or 9% each under the CGST and SGST Acts, aggregating to 18%.
– Raj/AAR/2018-19/08 Dated:- 1-7-2018 – NITIN WAPA AND SUDHIR SHARMA MEMBER Present for the applicant: CA Yash Dhadda, Counsel (Authorised Representative). CA Rajeev Tiwari Note: Under Section 100 of the RGST Act 2017, an appeal against this ruling lies before the Appellate Authority for Advance Ruling constituted under section 99 of RGST Act 2017, within a period of 30 days from the dat

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the provisions of the Companies Act 2013 and is also registered under the provisions of the Central Goods and Services Tax Act 2017 read with the provisions of the Rajasthan State Goods and Services Tax Act 2017 ( Assessee ). It will undertake itself in executing 'Engineering Procurement and Commissioning EPC contacts for Solar Power Generation System commonly known as Solar Power Plants . The contract between the assessee and its clients flows in a way wherein firstly they (assessee) shall agree and enter into 'Terms of Engagement' with each other defining the scope of work to be executed by assessee for client, the commercials for and timelines for EPC work as a whole to be undertaken. Thereafter in some cases, for the sake of convenience and clarity for steps to be undertaken specific terms are agreed and executed for Procurement and Supply of Goods and components forming part of solar power plant and for Installation & Commissioning to be undertaken for the Solar P

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and Transformers to be installed by assessee on any piece of land. A solar Power Plant is affixed to land or roof (depending upon the nature of the Solar Power Plant). For the same some civil work is undertaken to affix the Solar Power Plant for its efficient functioning. However almost all ingredients of the Solar Power Plant (except some civil work) can be effectively shifted from one location to another in case it is required to do so. No substantial damage shall be caused to any of the components of the Solar Power Plant. Thus the plant is effectively movable and can be reinstalled on any other piece of land. The assessee wants to understand that whether supply under consideration is Supply of Goods or Supply of Service. That Section 9 of the CGST Act 2017 which is charging section of Goods & Services Tax states: 9(1) Subject to provisions of sub-section (2), there shall be levied a tax called the central goods and services tax on all intra-State supplies of goods or services

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ection of the CGST Act 2017 provides for the activities which shall be treated as either supply of goods or supply of services in accordance with Schedule II of the Act. The point no 6 of the Schedule Il is read as under: The following composite supplies shall be treated as a supply of services, namely:- (a) works contract as defined in clause (119) of section 2. The term works contract has been defined under Section 2(119) as (119) works contract means a contract for building, construction, fabrication, completion, erection, installation fitting out, improvement, modification, repair, maintenance, renovation, alteration or commissioning of any immovable property wherein transfer of property in goods (whether as goods or in some other form) is involved in execution of such contract. Since given work executed by the assessee includes supply of goods and also performance of services hence it can be treated as amalgamation of 2 supplies. To decide whether the given amalgamation is composi

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ing through the terms of the terms of the contract and definition of composite and mixed supply, the given work can be classified as composite supply only. Since the contract is in relation to solar plant (supply and installation) they are bundled in ordinary course of business. To further decide whether the principal supply is of goods or service, the concept of works contract can be explored first. Works contract in itself is a composite supply in which construction, fabrication, completion, erection, installation, fitting out, improvement, modification, repair, maintenance, renovation, alteration or commissioning etc. are involved along with transfer of property in goods. However under GST, there is a monumental shift in concept of Works Contract which was prevalent under erstwhile VAT and Service Tax regime. In GST, as per definition of works contract service if construction, fabrication, completion, erection, installation, fitting out, improvement, modification, repair, maintenanc

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ovable property. The given terms have not been defined under the Act and hence the reliance needs to be placed on other laws and judicial precedents. Under the General Clauses Act 1897 the term immovable property has been defined under Section 3(26) as immovable property shall include land, benefits to arise out of land, and things attached to the earth, or permanently fastened to anything attached to the earth. As per the definition the term permanently fastened or attached to earth can be treated as immovable property. Any attachment with earth which is temporary in nature or can be shifted from part of earth to another without causing substantial damage to it cannot be treated as immovable property. Further, on the given issue, CBEC has also clarified in its circular number 58/1/2002-CX dated 15/1/2002 where in para (e) it was clarified that e) If items assembled or erected at site and attached by foundation to earth cannot be dismantled without substantial damage to its components

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uphold the contention of the appellant that the machine must be treated as a part of the immovable property of the company. Just because a plant and machinery are fixed in the earth for better functioning, it does not automatically become an immovable property. Further in case of Municipal Corporation of Greater Bombay & Ors. v. Indian Oil Corporation Ltd. [1991 Suppl. (2) SCC 181, = 1990 (11) TMI 407 – SUPREME COURT one of the questions SC Court considered was whether a petrol tank, resting on earth on its own weight without being fixed with nuts and bolts, had been erected permanently without being shifted from place to place. It was pointed out that the test was one of permanency: if the chattel was movable to another place of use in the same position or liable to be dismantled and re-erected at the later place. if the answer to the former is in the positive it must be a movable property but if the answer to the latter part is in the positive then it would be treated a permanent

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hus the plant is effectively movable and can be reinstalled on any other piece of land. Thus there is no substantial damage in the movement of solar power plant from one location to another location. Hence in the view of the assessee the given composite supply cannot be treated as supply of works contract service since the property coming into existence Shall not result into immovable property and will remain a movable property only. Next point for consideration is if it is supply of goods then what shall be principal supplies. It is important to note that various items from panels, batteries, cables, transformer etc are supplied for the solar power plant. Whether it can be treated as supply Of individual items or supply of solar power plant as a whole remains a question. In this regard the decision in case of Shree Venkateswara Engg. Corporation Versus C.C.E., Coimbatore reported in 2016 (335) E.LT. 62 (Tri. -Chennai) = 2016 (2) TMI 65 – CESTAT CHENNAI can be referred. It was held by

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SUPREME COURT OF INDIA. items cleared in parts have individual identity, it cannot be said that product cleared is not a device for purpose of generating non- conventional energy – Appellant eligible for exemption under Notification No. 6/2002. The ultimate intention of parties is also to supply the Solar Power Plant and not the individual components. Hence in view of above precedence and facts of the case, the given supply should be treated as supply of Solar Power Plant Only. Further under notification No 01/2017-CT (Rate) dated 28.06.2017, at S.No. 234, under HSN Classification 84, 85 and 94, for description. Following renewable energy devices parts for their manufacture (c) Solar Power Generating System The rate Of CGST has been mentioned as 2.5%. In given case also, it has been specified that intention of parties was to supply solar power plant only. Hence according to assessee, the correct classification of given supply should be Chapter 84: Solar Power Generating System at the r

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CA (Dealer Firm) who appeared for personal hearing on 25.06.2018. During the PH they submitted a written additional statement containing the applicant's interpretation of law and facts in respect of the aforesaid questions which was placed on record. They reiterated the submission already made in the application for Advance Ruling and further requested that the case may be decided as per the submission made earlier in Advance Ruling Application. 4. Findings and analysis: As per copy of contract submitted by the applicant the contractor i.e. M/S RFE Solar Private Limited has to execute a Composite EPC Contract . After going through the Written submissions, copy of contract and Other additional statements following findings and analysis is made: a) It is a composite EPC contract Which has been entered between Kushtagi Solar Power Private Limited (owner) and RFE Solar Private Limited (contractor) on 01.03.2018 for setting up of Solar Power Plant where the contractor has to, inter alia

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s of solar power plant including designing, engineering, supplies, installation to technical specification, testing and commissioning of a functional solar power plant as well as laying of transmission lines for transmission of the electricity generated up to storage or the grid. e) In clause 4.26 of the Contract, all risk and liabilities accruing in relation of works (temporary or permanent), and of all equipments, machinery, materials, shall be with contractor until occurrence of the Final Acceptance. f) Schedule 2 – Scope of works clearly spells out the terms and condition of Composite EPC Contract where contractor has to undertake works of installation, testing and commissioning of Solar Power Plant as per specific demands of owner. So it is not something sold out of shelf. g) There is a single lump sum price for the entire contract. h) The applicant has laid claim under notification No. 01/2017-CT (Rate) dated 28.06.2017, at S.No. 234, under HSN Classification 84, 85 and 94, for d

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nt, modification, repair, maintenance, renovation, alteration or commissioning is for immovable property only, then it will classify as works contract only. Hence it means that aforesaid activities if they are undertaken for a movable property then it will not be a works contract service. j) Applicant has relied upon following judgments in furtherance of their arguments of solar power plant being movable property and not immovable: i) Sirpur Paper Mills Ltd. v. Collector – 1998 (97) E.L.T. 3 (S.C.) = 1997 (12) TMI 109 – SUPREME COURT OF INDIA ii) Municipal Corporation of Greater Bombay & Ors. v. Indian Oil Corporation Ltd. [1991 Suppl. (2) SCC 181, = 1990 (11) TMI 407 – SUPREME COURT iii) Shree Venkateswara Engg. Corporation Versus C.C.E., Coimbatore reported in 2016 (335) E.LT. 62 (Tri. -Chennai) = 2016 (2) TMI 65 – CESTAT CHENNAI iv) CBEC circular number 58/1/2002-cx dated 15/1/2002 v) Board of Revenue, Chepauk, Madras v. K. Venkataswami Naidu (AIR 1955 Mad 620, 1955 CriLJ 1369)

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ing of the system. The transaction is a 'work contract' but it is for us to decide whether it is a 'work contract' in terms of GST Act. So, we come to the crux of the issue, which is as to whether the transaction results into any immovable property. The term 'immovable property' has not been defined under the GST Act. However, there are a plethora of judgments of the Hon. Supreme Court and the Hon. High Coutts which have helped understand the term 'immovable property'. 1. In decision of Allahabad High Court in Official Liquidator v. Sri Krishna Deo and Ors. [AIR 1959 All. 247], = 1958 (5) TMI 35 – HIGH COURT OF ALLAHABAD wherein, the Court held that a machinery fixed to their bases with bolts and nuts although easily removable are not movable property when they have been set up with definite object of running an oil mill and not with intention of being removed after a temporary use. 2. In decision of M/s. T.T.G. Industries Ltd., vs Collector of Central E

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n their reply to the show cause, the respondents explained the processes involved, the manner in which the equipments were assembled and erected as also their specifications in terms of volume and weight. It was explained that the function of the drilling machine is to drill hole in the blast furnace to enable the molten steel to flow out of the blast furnace for collection in ladles for further processing. After the molten material is taken out of the blast furnace, the hole in the wall of the furnace has to be closed by spraying special clay. This function is performed by the mudgun which is brought to its position and locked against the wall for exerting a force of 240-300 tons to fill up the hole in the furnace. The blast furnace in which the inputs are loaded is a massive vessel of 1719 m cubic metre capacity and the size of its outer diameter is 10.6 metres, and the height 31.25 metres. Hot air at 1200 degrees centigrade is fed into the blast furnace at various levels to melt the

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level. After welding the columns, the base plate has to be secured to the concrete platform. This is achieved by getting up a trolley way with high beams in an inclined posture so that base plate could be moved to the concrete platform and secured. The same trolley helps in the movement of various components to their determined position. The various components of the mudgun and drilling machine are mounted piece by piece on a metal frame, which is welded to the base plate. The components are stored in a store-house away from the blast furnace and are brought to site and physically lifted by a crane and landed on the cast house floor 25 feet high near the concrete platform where drilling machine and mudgun has to be erected. The weight of the mudgun is approximately 19 tons and the weight of the drilling machine approximately 11 tons. The volume of the mudgun is 1.5 x 4.5 x 1 metre and that of the drilling machine 1 x 6.5 x 1 metre. Having regard to the volume and weight of these machi

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g the fact that there is no space available for moving the machines in assembled condition due to their volume and weight. She considered the authorities on the subject and came to the conclusion that erection of mudgun and tap hole drilling machine results in erection of immovable property. She noticed the judgment of this Court in Narne Tulaman Manufacturers Pvt. Ltd. (supra) and also noticed the judgment of the Tribunal in Gwalior Rayon Silk Manufacturing (Weaving) Co. Ltd. v. CCE – 1993 (65) E.L.T. 121; = 1992 (10) TMI 188 – CEGAT, NEW DELHI which held that the issue of immovable property was never raised before the Supreme Court in Narne Tulaman Manufacturers Pvt. Ltd. She found support for her conclusion in the decision of this Court in Municipal Corporation of Greater Bombay & Ors. v. The Indian Oil Corporation Ltd. (1991) Supp. (2) SCC 18; = 1990 (11) TMI 407 – SUPREME COURT and held that the twin tests laid down by this Court to determine whether assembly/erection would re

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e thereon". The core question that still survives for consideration is whether the processes undertaken by the appellant at Bhilai for the erection of mudguns and drilling machines resulted in the emergence of goods leviable to excise duty or whether it resulted in erection of immovable property and not "goods". The appellant has placed considerable reliance on the principles enunciated and the test laid down by this Court in Municipal Corporation of Greater Bombay (supra) to determine what is immovable property. In that case the facts were that the respondent had taken on lease land over which it had put up, apart from other structures and buildings, six oil tanks for storage of petrol and petroleum products. Each tank rested on a foundation of sand having a height of 2 feet 6 inches with four inches thick asphalt layers to retain the sand. The steel plates were spread on the asphalt layer and the tank was put on the steel plates which acted as bottom of the tanks which

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ace? If the answer is yes to the former it must be a movable property and thereby it must be held that it is not attached to the earth. If the answer is yes to the latter it is attached to the earth. If the answer is yes to the latter it is attached to the earth." Applying the permanency test laid down in the aforesaid decision, counsel for the appellant contended that having regard to the facts of this case which are not in dispute, it must be held that what emerged as a result of the processes undertaken by the appellant was an immovable property. It cannot be moved from the place where it is erected as it is, and if it becomes necessary to move it, it has first to be dismantled and then re-erected at another place. This factual position was also accepted by the Adjudicating Authority. The technical member, however, held that the aforesaid decision was of no help to the appellant inasmuch as a leading international manufacturing firm had offered such machines for export to diffe

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2) TMI 75 – SUPREME COURT OF INDIA the facts were that a tube mill and welding head were erected and installed by the appellant, a manufacturer of steel pipes and tubes by purchasing certain items of plant and machinery in market and embedding them to earth and installing them to form a part of the tube mill and purchasing certain components from the market and assembling and installing them on the site to form part of the tube mill which was also covered in the process of welding facility. After noticing several decisions of this Court, the Court observed that the twin tests of exgibility of an article to duty under the Excise Act are that it must be a goods mentioned either in the Schedule or under Item 68 and must be marketable. The word "goods" applied to those which can be brought to market for being bought and sold and therefore, it implied that it applied to such goods as are movable. It noticed the decisions of this Court laying down the marketability tests. Thereafte

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al on record described the functions and manufacturing process. A mono vertical crystaliser is fixed on a solid RCC slab having a load bearing capacity of about 30 tons per square meter. It is assembled at site in different sections and consists of bottom plates, tanks, coils, drive frames, supports, plates etc. The aforesaid parts were cleared from the premises of the appellants and the mono vertical crystalliser was assembled and erected at site. The process involved welding and gas cutting. The mono vertical crystalliser is a tall structure, rather like a tower with a platform at its summit. This Court noticed that marketability was a decisive test for dutiability. It meant that the goods were saleable or suitable for sale, that is to say, they should be capable of being sold to consumers in the market, as it is, without anything more. The Court then referred to the decision in Quality Steel Tubes (supra) and distinguished the judgment in Narne Tulaman (supra) holding that the conte

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rm constructed on the land would be immovable property, as such it cannot be an excisable goods falling within the meaning of Heading 85.02. In reaching this conclusion this Court considered the earlier judgments of this Court in Municipal Corporation of Greater Bombay, Quality Steel Tubes and Mittal Engineering Works Pvt. Ltd. (supra) as also the earlier judgment of this Court in Sirpur Paper Mills Ltd. v. Collector of Central Excise, Hyderabad – 1998 (97) E.L.T. 3 (S.C.). = 1997 (12) TMI 109 – SUPREME COURT OF INDIA This Court observed :- "There can be no doubt that if an article is an immovable property, it cannot be termed as "excisable goods" for purposes of the Act. From a combined reading of the definition of 'immovable property' in Section 3 of the Transfer of Property Act, Section 3(25) of the General Clauses Act, it is evident that in an immovable property there is neither mobility nor marketability as understood in the Excise Law. Whether an article is

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the appellant on a specially made concrete platform at a level of 25 feet above the ground on a base plate secured to the concrete platform, brought into existence not excisable goods but immovable property which could not be shifted without first dismantling it and then re-erecting it at another site. We have earlier noticed the processes involved and the manner in which the equipments were assembled and erected. We have also noticed the volume of the machines concerned and their weight. Taking all these facts into consideration and having regard to the nature of structure erected for basing these machines, we are satisfied that the judicial member of the CEGAT was right in reaching the conclusion that what ultimately emerged as a result of processes undertaken and erections done cannot be described as "goods" within the meaning of the Excise Act and exigible to excise duty. We find considerable similarity of facts of the case in hand and the facts in Mittal Engineering and

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ng of the term in the Excise Act. Thus, it can be seen that the Hon. Supreme Court while holding the machines as immovable property took into account facts such that the machines could not be shifted without first dismantling it and then re-erecting it as another site. It was also sought to distinguish as to how a concrete base meant just to prevent wobbling of the machine would not place the machine in the category of 'immovable property' as something attached to the earth. 5. In light of above judgements and scope of work it is observed: 1) That the Solar Power Plant is a big project and has a permanent location as it is meant for onward sale of power to the consumer. Such plant would therefore have an inherent element of permanency. 2) The output of the project i.e. power, would be available to an identifiable segment of consumer. Thus this output supply would involve an element of permanency for which it would not be possible and prudent to shift base from time to time or l

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ontractor and the counter-party is entered into on the premise that the plant would continue to be situated at the place of construction. 6) Case laws citied by applicant have to be understood in terms of the facts as available therein. As in the case of M/s. Solid and Correct Engineering Works (cited Supra) the plant was not intended to be permanent and was to be shifted after completion of road repair and Construction work hence it was regarded as moveable. But in the instant case the solar power plant has an element of permanency. 7) An Overview of all makes us observe that the impugned transaction for EPC Contract for the Solar Power Plant which includes engineering, design, procurement, supply, development, testing and commissioning is a works contract in terms of clause (119) of section 2 of the GST Act. 8) Since the impugned transaction for EPC Contract for the Solar Power Plant is a works contract under section 2(119) as supply of services hence question of principal supply doe

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2018 (9) TMI 694 – AUTHORITY FOR ADVANCE RULINGS, RAJASTHAN – 2018 (17) G. S. T. L. 33 (A. A. R. – GST), [2019] 61 G S.T.R. 54 (AAR) – Requirement to take registration – Works Contract – Place of supply of service – construction of cold storages at various parts of Country – appellant are expecting to do some construction work in the state of Rajasthan whereas they are located in the state of Gujarat and registered there in GST – whether the appellant is required to take registration in the state of Rajasthan?
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Held that:- As per Para 6 (a) of Schedule II to the CGST Act, 2017, works contracts as defined in section 2(119) of the CGST Act, 2017 shall be treated as a supply of services. Thus, there is a clear demarcation of a works contract as a supply of service under GST Act – As per section 12(3)(a) of IGST Act, 2017 in case of Works Contract Services Place of supply shall be the location at which the immovable property (construction site) is located.
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Ruling:- A supplier o

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of CGST Act provide for the basic requirement for registration as reproduced below: Every supplier shall be liable to be registered under this Act in the State or Union territory, other than special category States, from where he makes a taxable supply of goods or services or both, if his aggregate turnover in a financial year exceeds twenty lakh rupees: Provided that where such person makes taxable supplies of goods or services or both from any of the special category States, he shall be liable to be registered if his aggregate turnover in a financial year exceeds ten lakh rupees. Also section 2(71) provide the location of supplier. We can say that the place from where the supply is made will be taken as a location of supplier. In our case the supply will be made from Gujarat. Section 2(71) "location of the supplier of services" means,- (a) where a supply is made from a place of business for which the registration has been obtained, the location of such place of business; (b

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arat and are duly registered there. They will be charging IGST on their activity in Rajasthan making it a place of supply. The state share of that IGST will go to the state of Rajasthan as it is the place of supply. The taxpayer believes that he is not required to take registration in the state of Rajasthan. 3. Personal Hearing (PH) In the matter personal hearing was given to the applicant. Ms. Shafaly Girdharwal, CA, Authorised Representative of applicant appeared for personal hearing on 25.06.2018. During the PH she reiterated the submission already made in the application for Advance Ruling. She requested that the case may be decided as per the submission made earlier in Advance Ruling Application. 4. Findings and analysis: The Works Contracts has been defined in Section 2(119) of the CGST Act, 2017 as "works contract" means a contract for building, construction, fabrication, completion, erection, installation, fitting out, improvement, modification, repair, maintenance, r

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of business or fixed establishment, the location of the establishment most directly concerned with the provisions of the supply; and (d) in absence of such places, the location of the usual place of residence of the supplier The Location of the Works Contractor shall remain to be the state where his principal place of business is registered (unless he has established his office/establishment in the place where the services are supplied) As per section 12(3)(a) of IGST Act, 2017 in case of Works Contract Services Place of supply shall be the location at which the immovable property (construction site) is located. Section 22(1) of CGST Act,2017 defines the liability for registration as: Every supplier shall be liable to be registered under this Act in the State or Union territory, other than special category States, from where he makes a taxable supply of goods or services or both, if his aggregate turnover in a financial year exceeds twenty lakh rupees: Provided that where such person

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Goods and Services Tax – Started By: – Prateek Agrawal – Dated:- 30-6-2018 Last Replied Date:- 7-7-2018 – An agreement with JCB owner that we will pay monthly rent of ₹ 50000/- to him if any repair and maintenance of JCB will bear by us . If any repair and maintenance done by us and invoices are prepared in our company name can we take INPUT TAX CREDIT of the same in our books of A/c – Reply By YAGAY and SUN – The Reply = In our view ITC would be available to you. – Reply By Ganeshan Kalyani – The Reply = I am also of the view that input tax credit is eligible. – Reply By Alkesh Jani – The Reply = Sir,I agree with the views expressed by our expertsThanks – Reply By Himansu Sekhar – The Reply = I have a different view.a, The supply of

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sed on the Notification No.11/2017-CT (Rate) dated 28/06/2017 as amended from time to time. The Sl.No.17 which refers to HSN code 9973 i.e. lease or rental service, wherein, it is stated that temporary or permanent or permitting the use …… Therefore, without its repair one cannot use and even temporary use, the repairing charges are normally borne by the user. It can be conclude that the user is temporary owner of the machinery. Hence, ITC is available. Further, If, by way of agreement, such charges are reimbursed by the actual owner, then I would say, ITC is not available. Our experts may correct me if mistaken. Thanks – Reply By Himansu Sekhar – The Reply = The major controversy in supply of tangible goods service is the own

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Reply By YAGAY and SUN – The Reply = Please check the Explanatory Notes to the Scheme of Classification of Services under GST Regime. – Reply By DR.MARIAPPAN GOVINDARAJAN – The Reply = In my opinion the views of Shri Alkesh is correct. – Reply By AKSHAY NAIK – The Reply = Dear Sirs,Is Input Tax Credit available on Hiring services of Crane for moving of inventory in stores/warehouse?Thanks, – Reply By KASTURI SETHI – The Reply = Yes. It is available. Hiring of crane is classified under the category of Right to use /supply of tangible goods . It conforms to the definition of in business or furtherance of business. – Reply By Himansu Sekhar – The Reply = The view of kasturi sir is correct. The use of crane for transfer of goods from one wareh

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Goods and Services Tax – Started By: – SURYAKANT MITHBAVKAR – Dated:- 30-6-2018 Last Replied Date:- 10-7-2018 – If value not exceed ₹ 50000/- the generation of Eway Bill is not applicable.But this applicable for both transaction i.e. Inter State & Intra state supply ? – Reply By SHIVKUMAR SHARMA – The Reply = Yes,For both type of Supply. – Reply By YAGAY and SUN – The Reply = There are two or three states where this limit of 50000/- has been extended by 100000/- and Delhi is one of su

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Goods and Services Tax – GST – Dated:- 30-6-2018 – 1st July 2018 to be celebrated as GST day , to commemorate the first year of the unprecedented reform of Indian taxation GST is a fitting tribute to spirit of cooperative federalism as all decisions in the 27 meetings of GST Council taken by consensus GST – ONE NATION, ONE TAX, ONE MARKET – binds India into an Economic Union, promotes Make in India and has improved Ease of Doing Business Introduction of e-way bill ensures hassle free movement of goods throughout the country GST replaced multi-layered, complex indirect tax structure with a simple, transparent and technology-driven tax regime Government of India is celebrating the 1st Anniversary of the Goods and Services Tax (GST) coming into force, here tomorrow. GST was launched on the 1st July, 2017 in a majestic ceremony held in the Central Hall of Parliament on the midnight of 30th June, 2017. The first year has been remarkable both for the sheer variety of challenges that its imp

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sive power to tax services. This sort of division of taxing powers created a grey zone which led to legal disputes since determination of what constitutes a goods or service became increasingly difficult. In the discussions that preceded amendment in the Constitution for GST, there were a number of thorny issues that required resolution and agreement between Central Government and State Governments. Implementing a tax reform as vast as GST in a diverse country like India required the reconciliation of interests of various States with that of the Centre. Some of these issues included origin-based versus destination-based taxation, rate structure and compensation, Dispute Settlement, inclusion of Alcohol and Petroleum products under GST. Resolution of these issues took some time and finally, the Constitution (122nd Amendment) Bill, 2014 was introduced in the Parliament on 19th December, 2014 and has been enacted as Constitution (101st Amendment) Act, 2016 w.e.f. 16th September, 2016. As

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sed their respective SGST Acts. The economic integration of India was completed on 8th July, 2017 when the State of J&K also passed the SGST Act and the Central Government also subsequently extended the CGST Act to J&K. On 22nd June, 2017, the first notification was issued for GST and notified certain sections under CGST Act. Since then, one hundred and three notifications under CGST Act have been issued notifying sections, notifying rules, amendment to rules and for waiver of penalty, etc. Thirteen, twenty eight and one notifications have also been issued under IGST Act, UTGST Act and GST (Compensation to States) Act respectively. Further 59, 63, 59 and 8 rate related notifications each have been issued under the CGST Act, IGST Act, UTGST Act and GST (Compensation to States) Act respectively. Similar notifications have been issued by all the States under the respective SGST Act. Apart from the notifications, 53 circulars and 14 orders have also been issued by CBIC on various s

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or services or both. The introduction of e-way (electronic way) bill is a monumental shift from the earlier Departmental Policing Model to a Self-Declaration Model . It envisages one e-way bill for movement of the goods throughout the country, thereby ensuring a hassle free movement of goods throughout the country. The e-way bill system has been introduced nation-wide for all inter-State movement of goods with effect from 1st April, 2018. As regards intra-State movement of gods, all States have notified e-way bill rules for intra-State supplies last being NCT of Delhi where it was introduced w.e.f. 16th June, 2018. GST will have a multiplier effect on the economy with benefits accruing to various sectors such as exporters, small traders and entrepreneurs, agriculture and industry, common consumers. GST has already promoted Make in India and has improved the Ease of Doing Business in India. By subsuming more than a score of taxes under GST, the road to a harmonized system of indirect t

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Goods and Services Tax – Started By: – Rajat Singhania – Dated:- 30-6-2018 Last Replied Date:- 5-7-2018 – Dear Members,For a private institution which outsources its entire hostel facility to some third party for running and the said third party issues a monthly bill to the institution, GST would be levied @5% only on the fooding component or would the entire bill be subject to GST. If so, what rate of GST would be applicable.The question arises because hostel services mainly consist of fooding and lodging services. For fooding services ,there was a circular issued in January 2018 which stated the rate of GST as 5% without ITC. But for the lodging part in case of hostels, there is no such notification/circular,as per my understanding.Pleas

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Goods and Services Tax – Started By: – ashok amin – Dated:- 30-6-2018 Last Replied Date:- 3-7-2018 – Dear Experts,1) We manufacture jigs and clear it by charging 18% GST. Sometimes the consignee send the jigs back for re-coating it. The consignee prepares a returnable gate pass without mentioning any rate or value in it.2) Sometimes we get jigs of other consignee's for re-coating and some sort of simple repair like straightening the hooks.There is a negligible rate increase while sending the re-coating jigs to the consignee. My querry is should we prepare tax invoice with G S T charged or should we prepare only challan without charging G S T in it. Secondly, what should we do in the second case ? – Reply By YAGAY and SUN – The Reply =

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Goods and Services Tax – GST – By: – Bimal jain – Dated:- 30-6-2018 – Reeling from the messy implementation of demonetisation in November 2016, rolling out of half- baked Goods and Services Tax ( GST ) came as a tide in the lives of Indian businesses and taxpayers. Rightly learned from the natural law theory that being flawless is not something which happens at once, it s a process of crawling, falling and then learning to walk, but being awake to the ebbs and flows of this process, is what that marks success in long run. Learnings of GST in its past one year is no different….. Any change, even a change for the better, is always accompanied by drawbacks and discomforts. Arnold Bennett With seeds initially sown by the then Prime Minister Shri. Atal Bihari Vajpayee in the year 2000, GST is definitely not an overnight thought. On July 1, 2017, history was created when the country witnessed the biggest and most important economic reform since Independence – GST going live, marking

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onetheless, with optimistic view of brighter and stable future, let us look back on the journey of GST so far to identify key hits and misses along with still needed improvements under work-in-progress GST. Kudos to GST……. Simplified tax structure bringing ease of doing business in India: Separate Taxes by Central Government, State Governments and the local governments had resulted in difficulties and harassment to the tax payers in complying with different types of taxes and their compliances. GST has certainly consolidated the multiplicity of taxes in India and has thus created a simplified tax regime. It has replaced around 17 federal and state levies to unify a country of 1.3 billion people into one of the world s biggest common markets to promote ease of doing business. No more hit of double taxation on pockets of consumers: Owing to Indian government s federal structure, where there are two taxing authorities – the central government and the state government(s), the

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out the supply chain, GST has provided benefit of enhanced input tax credit pool for businesses with minimal cascading. Continuous rationalisation of tax structure making commodities affordable for consumers: Multiple tax rate structure in GST was long debated to cause unease of business when GST was envisaged as a powerful mechanism to bring system of uniform taxation. More particularly, highest tax rate slab of 28% was the centre of pain for taxpayers with even the commodities of general consumption falling in highest slab. Understanding concerns of the trade, the GST council has made wholesale shift of numerous items from the peak 28% tax slab to the more reasonable rate of 18% in last one year which has benefitted the trade a lot in terms of price hike control as well as international competitiveness. Consumers too can now afford various such commodities at affordable prices. Continuous efforts to simplify composition scheme for the advantage of SME and MSME sector (the heart of In

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ime for transportation: After failing to face brunt of high volume of E- Way bills generated on very first day of launch in February 2018, due to which the provision got deferred till April 1, 2018, the government has managed to ensure smooth roll out of the E-Way Bill system since then. For intra-state movement of goods, the provision was implemented in a staggered manner by June, 2018. With removal of inter-state check posts, E-Way Bill system has led to quicker and smoother movement of goods, reducing the resultant turnaround time for vehicles. As per rating agency ICRA, in states such as Kerala, West Bengal, Maharashtra, Madhya Pradesh and Bihar, which were one time known for notoriously high waiting time spent at their borders, the impact has been much more pronounced. More changes loom…… Robust GSTN network to handle compliances with least technical glitches: After a shaky experience for first year of GST, it is imperative that IT system (i.e. GSTN network) must be

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nvisaged could not take off at all. Consequently, interim procedure of filing summarised return in Form GSTR-3B with outward supplies details in Form GSTR-1 is in place. The GST council in its 27th meeting held on May 4, 2018, had approved the revised design of GST Returns that would require a taxpayer to file only one return every month and it sets a period of six months for the transition to take place. The process is designed in 3 stages, wherein stage 2 return will have facility for invoice-wise data uploads by the supplier and also facility for claiming credit on self-declaration basis by recipient, as in case of GSTR 3B now. After six months of this stage, the facility of provisional credit will be withdrawn and credit will only be limited to the invoices uploaded by the sellers from whom the dealer has purchased goods. It is utmost required that the system of return filing and matching of credits get freezed, in the absence of which the dealers are facing problems relating to cl

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ms like motor vehicles, free samples, construction of office/ factory, etc. There is a strong need to prune down this list to allow credits in those cases where appropriate GST has been paid on its disposal. Further, expenses pertaining to sales promotional activities must be allowed and should not be barred in the name of personal consumption, free samples, gifts etc. Challenges in inclusion of petroleum products in GST: At the time when diesel and petrol prices were touching multi-year highs, Union Petroleum Minister, Shri. Dharmendra Pradhan had said that petroleum products should be included under GST to help consumers pay a rational price. While the centre wants liquor and petroleum products should come under GST, states are keen to retain their power to tax these items as they are major sources of revenue for them. The blocked road towards inclusion of liquor and petroleum products in GST is causing hardships on related sectors and others dealing or consuming these items who cont

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taxes by supplier; Smooth and Fast disbursal of refunds on exports, though lots of efforts are being taken regularly to ease the process; Dispute Resolution mechanism in case of contrary judgments by two Authorities for Advance Ruling by formation Centralised Appellate Authority; Minimising state-wise differential provisions as to threshold or specified goods requirement for E-Way Bill in case of intra-state movement of goods as recently seen in Tamil Nadu, Delhi, Mizoram etc. Providing suitable link to determine jurisdiction of taxable authority of a taxpayer. Our Comments: Despite of being mocked as Gabbar Singh Tax by opposition, GST – the India s new unified nationwide value-added system of taxation has come a long way in simplifying the complex tax structure of the Country. The initial implementation issues which took a toll on businesses have been dealt with appropriately by the GST Council either by relaxing the norms or by frequent extension of dates. As per the Economic Survey

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tter account, notifications/circulars etc., but, with the quantum of rulings coming from respective states Hon ble Authority for Advance Ruling at high pace, it is also clear that still GST is a work in progress with lots of issues still unexplained and unearthed. As GST s first anniversary passes, the Government is expected to tweak the tax regime through amendments during the monsoon session of Parliament in July. The objective would be to make it more simpler and friendlier with easy return filing process and credit matching system. Formats of annual return are still awaited which may also see practical challenges in understanding. Additionally, strengthening tax administration must also be on the cards. According to Ms Sarna, Chairperson, CBIC, it might take another couple of years or more for GST to completely stabilise and settle down. However, for the first year, it has not been bad at all. The only way to make sense out of change is to plunge into it, move with it, and join the

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2018 (8) TMI 284 – AUTHORITY FOR ADVANCE RULINGS, MADHYA PRADESH – 2018 (16) G. S. T. L. 157 (A. A. R. – GST) – Classification of Supply – activity of Body Building on the chasis supplied by the Principal, which is undertaken as a job work – utilising and consuming tangible material from their (Applicant’s) end for fulfilling the job work.
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Whether the supply is to classified as supply of goods or supply of services? – Held that:- In the case of bus body building there is supply of goods and services. Thus, classification of this composite supply, as goods or service would depend on which supply is the principal supply which may be determined on the basis of facts and circumstances of each case – the activity of Body Building undertaken by the Applicant, carried out on the chassis supplied by the principal in the capacity of a job worker, would amount to ‘Composite Supply’ as define under CGST Act 2017/MPGST Act 2017.
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What would be the appropriate classification and applica

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ilding undertaken by the Applicant, carried out on the chasis supplied by the principal in the capacity of a job worker, would amount to ‘Composite Supply’ as define under CGST Act 2017/MPGST Act 2017.
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The rate of tax on such Composite Supply would be determined by the predominant component involved in such Composite Supply in terms of Section 8(a) of the CGST Act 2017, depending upon the character of the body being built on the chasis, which would eventually be classifiable under Chapter 87 of the Tariff. On the other hand, if the predominant element happens to be the Service part, then the Principal supply would be classified under Heading no.9988.
– Final Order No. 04/2018 Dated:- 30-6-2018 – Shri Rajeev Agrawal, Joint Commissioner, And Commissioner CGST And Central Excies And Shri Manoj Kumar Choubey, Joint Commissioner of State Tax, Commircial Tax Division For The Applicant : Krishan Garg, Praveen Gupta And K. Soni RULING 1. At the outset we would like to make it clear th

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transaction is covered under Service category. 2.3 Thus the Applicant have approached the Authority for limited and specific ruling about classification of their activity of Body Building on the chasis supplied by the Principal, which is undertaken as a job work, though utilising and consuming tangible material from their (Applicant s) end for fulfilling the job work 3. QUESTIONS RAISED BEFORE THE AUTHORITY: The following questions have been posed before the Authority, with reference to the activity undertaken by the Applicant: 3.1 Whether the supply mode by us is to classified as supply of goods or supply of services?; 3.2 What would be the appropriate classification and applicable rate of tax for the above transaction? 4. DEAPRTMENT S VIEWPOINT: Central/MPGST Act, 2017 section 2 read with section 8-in the case of bus body building there is supply of goods and services. Thus, classification of the composite supply as goods or service would depend on which supply is the principle suppl

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but is fabricated on chasis itself Body requirement (mainly interior) differ from party to party. 5.3 It was further submitted that thus it can be seen from above that fabrication and other work is done on chasis itself. It is not the case that any ready made body is fitted on chasis given by the owner . It is important to note during this whole process, ownership of chasis always remains with the person who has given us job work for making body on chasis. Thus it is not the case of only supply of goods . We, therefore of the view that supply made by us is a composite supply of goods and services, however, since the predominant intention of the buyer here is to get services, hence it should be classified as services and should be charged GST @18% 6. DISCUSSIONS AND FINDINGS: 6.1 We have carefully considered the submissions made by the applicant \n the application. We find that the activity and the question raised before us has been suitably clarified and dealt with in Circular No.34/08

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o a recipient consisting of two or more taxable supplies of goods or services or both, or any combination thereof, which are naturally bundled and supplied in conjunction with each other in the ordinary course of business, one of which is a principal supply. 6.3 Further, as regards tax liability on composite supply, Section 8(a) of the CGST Act 2017 provides that a composite supply comprising of two or more supplies, one of which is a principal supply, shall be treated as a supply of such principal supply; The term Principal Supply has been categorically defined under Section 2(90) of the CGST Act 2017 and corresponding entry in MPGST Act, 2017; Principal Supply means the supply of goods or services which constitutes the predominant element of a composite supply and to which any other supply forming part of that composite supply is ancillary. 6.4 Though the Applicant, in their additional submission dtd.23.06.2018 have briefly described the process being undertaken by them during the co

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ne the rate of tax applicable on such composite supply. In case the Goods part is predominant, then the Composite Supply in this case would be governed by Chapter 87 depending upon the nature of body being built by the Applicant on the chasis supplied by the principal. In case, the Service part is predominant in the composite supply, then the rate of tax would be applicable as per Heading No.9988. However, due to incomplete information provided by the Applicant, the Authority finds itself constrained to provide any definitive ruling on this aspect. RULING 7. The Advance Ruling on questions posed before the authority are answered as under: 7.1 In respect of Question 1, we hold that the activity of Body Building undertaken by the Applicant, carried out on the chasis supplied by the principal in the capacity of a job worker, would amount to Composite Supply as define under CGST Act 2017/MPGST Act 2017; 7.2 In respect of Question No.2, we hold that the rate of tax on such Composite Supply

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Goods and Services Tax – GST – Dated:- 29-6-2018 – New Delhi, Jun 28 (PTI) – Petrol and diesel when brought under GST will involve a peak tax rate of 28 per cent plus states getting to levy some tax, keeping the retail rates at almost the same level as they are currently, Bihar Deputy Chief Minister Sushil Kumar Modi said today. Modi, however, said it will take some time for states to get around to including petrol and diesel in the GST and the Council will take a final call on the timing. If petrol, diesel are to be brought into GST, then states will be allowed the levy taxes on top of 28 per cent to prop up revenue. It will take some time to include petrol, diesel in GST as the states have divergent views, Modi said at a PHD Chamber even

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s levy Value Added Tax (VAT) – the lowest being in Andaman and Nicobar Islands where a 6 per cent sales tax is charged on both the fuel. Mumbai has the highest VAT of 39.12 per cent on petrol while Telangana levies the highest VAT of 26 per cent on diesel. Delhi charges a VAT of 27 per cent on petrol and 17.24 per cent on diesel. The total tax incidence on petrol comes to 45-50 per cent and on diesel, it is 35-40 per cent. Under GST, the total incidence of taxation on a particular goods or a service has been kept at the same level as the sum total of central and state levies existing pre-July 1, 2017. This was done by fitting them into one of the four GST tax slabs of 5, 12, 18 and 28 per cent. For petrol and diesel, the total incidence of

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Goods and Services Tax – Started By: – SARAVANAN RENGACHARY – Dated:- 29-6-2018 Last Replied Date:- 5-7-2018 – Dear Experts, GST department has started to send notices to assesses in Form GST ASMT 10 seeking clarification for the mismatch of input credit between GSTR3B and GSTR2A. i.e. Quarter Oct to Dec'17. When GSTR2A tool is not functioning, it is mandatory for the assesses to check the availability of credit in GSTR2A while availing the credit. Regards Saravanan – Reply By Ganeshan Kalyani – The Reply = Presently the mechaniwm of GSTR2A reconciliation is bot in operation. So the assesse has been allowed to take credit on self declaration basis thru GSTR 3B. However, the purpose of online filing of invoice wise sales by a supplier i

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Goods and Services Tax – GST on Reverse Charge Mechanism (RCM) u/s 5(4) of IGST / 9(4) of CGST – procurement of supplies from unregistered persons – levy deferred till the 30.09.2018 – See notification as amended. – TMI Updates – Highlights

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Goods and Services Tax – Started By: – Shashikumar Guntuka – Dated:- 29-6-2018 Last Replied Date:- 6-7-2018 – He'll sir, I am proprietary of zari embroidery. I am confused regarding gst applicable to business and I am purchase cloth and embroidery on it with different materials like chemkki , zari articles, baids etc, whether if client will provide cloth it will treat as goods or services and what rate, HSN OR SAC – Reply By KASTURI SETHI – The Reply = Here is an extract of FAQ dated 28.9.17. You may see the relevant HSN of your product for latest rate of tax in GST tariff. There are changes in rate of tax depending upon the item you manufacture/supply. Your item is manufactured 20 What is the HS code and GST rate on : (a) embroidery o

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all sarees of silk, cotton or man-made fabrics [whether or not with embroidery or chikan work] is 5%. 2 However, GST rate on sarees woven of metal thread or metallised yarn under HS code 5809 is 12%. – Reply By Shashikumar Guntuka – The Reply = Sir, Can you clarify me whether Embroidery work will come under Goods or Services and also I have question about whether it will cover under job work. Give me applicable HSN or SAC – Reply By KASTURI SETHI – The Reply = It is goods as already replied. Job work can be got done. Exact HSN depends on the type of textile on which embroidery work is to be done i.e. whether it is cotton, man-made etc. If you want further clarification, describe the type of cloth. – Reply By DR.MARIAPPAN GOVINDARAJAN – The

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Goods and Services Tax – Started By: – Shashikumar Guntuka – Dated:- 29-6-2018 Last Replied Date:- 2-7-2018 – what is the date is taken for export under GST regime. Invoice date / Shipping bill date / Bill of Lading (or) Airway Bill date? for example invoice date : 10.07.2017 , shipping billdate : 18.08.2017, bill of lading (or) Airway bill date 24.08.2017 which one is correct ? why ?Q2 : what is the correct conversion rate? which INR value was taken for Export ? Shipping bill value (or) bank r

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GST Council to Meet On 2ist July – Goods and Services Tax – GST – Dated:- 29-6-2018 – The 28th meeting of the GST Council will be held in New Delhi on Saturday, the 21st of July, 2018 from 11:00 hours

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Goods and Services Tax – 13/2018 – Dated:- 29-6-2018 – Government of India Ministry of Finance Department of Revenue Central Board of Indirect Taxes and Customs Notification No.13/2018 – Integrated Tax (Rate) New Delhi, the 29th June, 2018 G.S.R. 595 (E).- In exercise of the powers conferred by sub-section (1) of section 6 of the Integrated Goods and Services Tax Act, 2017 (13 of 2017), the Central Government, on being satisfied that it is necessary in the public interest so to do, on the recommendations of the Council, hereby makes the following amendment in the notification of the Government of India, in the Ministry of Finance (Department of Revenue), No. 32/2017- Integrated Tax (Rate), dated the 13th October, 2017, published in the Gaz

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Goods and Services Tax – 12/2018 – Dated:- 29-6-2018 – Government of India Ministry of Finance Department of Revenue Central Board of Indirect Taxes and Customs Notification No. 12/2018 – Central Tax (Rate) New Delhi, the 29th June, 2018 G.S.R. 594 (E).- In exercise of the powers conferred by sub-section (1) of section 11 of the Central Goods and Services Tax Act, 2017 (12 of 2017), the Central Government, on being satisfied that it is necessary in the public interest so to do, on the recommendations of the Council, hereby makes the following further amendment in the notification of the Government of India, in the Ministry of Finance (Department of Revenue), No. 8/2017 – Central Tax (Rate), dated the 28th June, 2017, published in the Gazet

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