Author: admin_gst

STAR CEMENT MEGHALAYA Versus THE STATE OF ASSAM REP. BY THE COMMISSIONER AND SECRETARY TO THE GOVT. OF ASSAM, GUWAHATI, THE COMMISSIONER OF STATE TAXES (earlier known as COMMISSIONER OF TAXES) GUWAHATI AND INDIAN OIL CORPORATION LTD.
GST
2019 (3) TMI 21 – GAUHATI HIGH COURT – 2019 (21) G. S. T. L. 484 (Gau.)
GAUHATI HIGH COURT – HC
Dated:- 4-9-2018
Case No. : WP (C) 366/2018 And Linked Case : WP(C) 915/2018
GST
MR ACHINTYA MALLA BUJOR BARUA, J.
For The Petitioner : DR. ASHOK SARAF
For The Respondent : MR. D SAIKIA(SR. ADDL. AG)
JUDGMENT & ORDER (CAV)
Heard Dr. A. Saraf, learned senior counsel for the petitioners. Also heard Mr. D. Saikia, learned Senior Additional Advocate General for the authorities of the State of Assam in the department of Finance and Taxation as well as Mr. S.C. Keyal, learned ASGI for the authorities of the Govt. of India in the Ministry of Finance and Revenue and Ministry of Law and Legal Affairs, who were arrayed as respondents as per

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using the Form-C under the Central Sales Tax Act, 1956 (for short, CST Act of 1956) and subject themselves to the payment of Central Sales Tax (CST) under the provisions of Section 8 (1) of the Act of 1956.
4. On the contrary, if the petitioners are unable to or are prevented from taking the benefit of the Form-C, the CST @ 2% as provided under Section 8(1) of the CST Act, 1956 would not be applicable and rather they would be subjected to payment of sale tax under the local laws.
5. The respondents under the State of Assam in the Finance and Taxation Department through the Commissioner of Taxes, Assam had issued a Circular No.7/2017-GST dated 05.09.2017 by which, a clarification was given on certain aspects of the CST Act of 1956 as regards the liabilities returns, registrations to be made and also as regards the eligibility to make inter-state sale/purchase of goods against the Form-C and inter-state stock transfer/receipt of goods against the Form-F, after implementation of the pr

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le to pay sales tax under the AVAT Act of 2003, but consequent upon the repeal of AVAT Act of 2003, w.e.f. 01.07.2017, the dealers not selling the aforesaid six goods are no more liable to pay tax under the Act of 2003 and, therefore, upon cessation of their liability under the AVAT Act of 2003, they are not eligible for registration under Section 7(2) of the CST Act of 1956 and the registration earlier granted to them under Section 7(2) became invalid.
iv) Clause-5 thereof provides that such dealers who continue to make interstate sale of only the aforesaid six goods will continue to be liable to pay tax under the CST Act of 1956 and their registration under the Act continues to remain valid and they can also make their inter-state purchases of the aforesaid six goods against Form-C or Form-F, as the case may be.
v) Clause-9 of the said Circular clarifies that the dealers who up to 30.06.2017 were making inter-state purchase of petroleum and high speed diesel (among the six retain

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anufacture of any goods, which is other than the aforesaid six goods, such dealers can no longer avail the benefit of paying CST @ 2% by utilizing the benefit of Form-C.
8. In the present writ petition, the said Circular of 05.09.2017 has been assailed on the following grounds:-
Firstly, the Commissioner of Taxes, Assam had no jurisdiction to issue the Circular dated 05.09.2017, by which it was declared that the dealers making inter-state purchase of petrol and high speed diesel against Form-C for use in the manufacture or processing of goods, other than the six goods ceased to be dealers under the CST Act of 1956, w.e.f. 01.07.2017.
Secondly, even after the amendment of the CST Act of 1956 and the AVAT Act of 2003, the six goods continue to remain taxable under the CST Act of 1956 and AVAT Act, 2003 and therefore, the grant of registration under Section 7(2) of the CST Act, 1956 to such dealers who purchases the aforesaid goods for use in manufacture and processing of goods resulti

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ion were retained for being taxable under the CST Act of 1956 and AVAT Act of 2003. As the said six goods are retained as taxable under the said two Acts, any dealer who intends to purchase any of the said six goods are entitled to be registered or to retain their registration under Section 7(2) of the CST Act of 1956. Dr. A. Saraf, learned senior counsel also submits that the effect of the Circular dated 05.09.2017 declaring and clarifying that a dealer who purchases any of the six goods for interstate sale, uses them for the manufacture of a good other than the six goods, would cease to be a dealer under the CST Act, 1956 would be that the authorities while issuing the Circular have the word goods appearing for the fourth time in section 8(3) of CST Act, 1956 to be a good as defined under Section 2(d) of the Act. According to Dr. Saraf, such effect of the declaration would be contrary to the principle laid down by the Supreme Court in paragraph-18 of Printers (Mysore) Ltd Vs. Asstt.

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7 was in fact, a requirement of the Central Government in the Finance Department and therefore, any adverse orders against the State of Assam would in fact have the implication of being an adverse order against the Central Government.
11. As regards the submission of Dr. Saraf that the Commissioner of Taxes, Assam did not have the jurisdiction to issue the Circular, Mr. D. Saikia by referring to section 9(2) of the CST Act of 1956 contends that the appropriate authorities in the State of Assam assesses, re-assesses, collects and enforces the payment of the tax under the Act on behalf of the Govt. of India and therefore, in order to do the needful, they may exercise all or any of the powers that may be available both under the central laws as well as under the tax laws of the State and therefore, all such powers available to the state authority under the AVAT Act, 2003 are also available for issuing the Circular dated 05.09.017. Accordingly, Mr. D. Saikia, learned senior counsel by ref

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05.09.2017, they would now be liable to pay tax under the AVAT of Act 2003 in respect of any purchase of the six aforesaid goods, even if such purchases were made in course of interstate sale, but resulted in being used as a raw material for manufacturing of a good other than the six goods.
12. Mr. Saikia, also submits that the provisions laid down by the Supreme Court in Printers (Mysore) Ltd, (supra) would be inapplicable in the present case, inasmuch as, in Printers (Mysore) Ltd (supra) the factual background was that on the newspaper having been excluded from the purview of the word goods by the amendment of 1958 of the CST Act, whether it can be construed as a good as appearing for the fourth time under Section 8(3)(b) of the CST Act of 1958. But in the instant case, the issue for consideration would be entirely different and, therefore, the provisions laid down by the Supreme Court in paragraph 18 of Printers (Mysore) Ltd. (supra) would not be applicable.
13. Mr. Saikia also r

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m a bare perusal of the Circular dated 05.09.2017, it is discernible from Clause 9 thereof that a dealer who purchased one of the six retained goods for the purpose of inter-state sale and used it for manufacturing of a finished goods, which would be a good, other than the six retained goods, is not liable to pay sales tax under the CST Act of 1956 and also under the AVAT Act of 2003 and to that extent his registration under Section 7(2) of the CST, Act of 1956 ceases to exist.
16. Section 7(2) of the CST Act of 1956 entitles a dealer to get himself registered under the Act, even if, he is not liable to pay sales tax under the CST Act of 1956, but on the other hand, is liable to pay sales tax under the AVAT Act of 2003. If the analogy projected in Clause-9 of the circular dated 05.09.2017 that the registration under Section 7(2) of the CST Act of 1956 ceases to exist as the dealer is no longer liable to tax under the AVAT Act of 2003 is correct,, the withdrawal of the registration und

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3, from 01.07.2017 onwards, the authorities may withdraw the registration under Section 7(2) of the CST Act of 1956, inasmuch as, the pre-requisite of Section 7(2) of being liable to pay tax under the state sales tax law ceases to exist.
17. But to a query raised as to under what provisions the petitioners would now be liable for payment of sales tax, upon withdrawal of their registration under Section 7(2) of CST Act of 1956, where the petitioners were entitled to pay a tax of 2% under Section 8(1) of the Act for the interstate purchase of diesel made by them for producing the clinker in the State of Meghalaya, it is replied by Mr. D. Saikia, learned Senior Additional Advocate General that the petitioners would now be liable to pay the tax under the GST Acts of 2017 or in the alternative, they would now liable to pay the tax at the appropriate rate under the AVAT Act of 2003 and they would not retain the earlier benefit of paying CST @ 2%.
18. On the submission of Mr. D. Saikia that

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” means every kind of movable property other than money and securities but includes actionable claim, growing crops, grass and things attached to or forming part of the land which are agreed to be severed before supply or under a contract of supply.”
21. From a bare reading of the definition of 'goods' under Section 2(52) of the CGST Act of 2017 it is apparent that all kinds of movable property other than money and securities are taxable under the said Act, which apparently, going only by the definition of Section 2(52) would also include the six goods that have been retained under Section 2(h) of the CST Act of 1956.
22. But again Sections 9(2) of the CSGT Act of 2017 and the Assam Goods and Services Act, 2017 (in short AGST Act, 2017) provides as follows:-
“Section 9(2) of the CGST Act of 2017:-
(2) The central tax on the supply of petroleum crude, high speed diesel, motor spirit (commonly known as petrol), natural gas and aviation turbine fuel shall be levied with effect from

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Section 12(5) of the Constitution (One Hundred and First Amendment) Act, 2016 provides as follows:-
(5) The Goods and Services Tax Council shall recommend the date on which the goods and services tax be levied on petroleum crude, high speed diesel, motor spirit (commonly known as petrol), natural gas and aviation turbine fuel.
25. From the provisions of Section 9(2) of the CGST Act of 2017 and AGST Act of 2017, respectively and Section 12(5) of the Constitution (One Hundred And First Amendment) Act, 2016 it is discernible that the levy of tax on the five goods namely, petroleum crude, high speed diesel, that motor spirit (commonly known as petrol), natural gas and aviation turbine fuel, which are amongst the six goods retained under the CST Act of 1956, are leviable only with effect from such date as may be notified by the Government on the recommendation of the Goods and Services Tax Council. It has been informed by the authorities in the Finance and Taxation Department of both the

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under Section 7(2) of the CST Act of 1956, they would now be subjected to a levy of tax under the GST Acts of 2017.
27. As regards the other alternative contention of learned Senior Additional Advocate General that upon withdrawal of such registration under Section 7(2) of the CST Act of 1956 the petitioners would now be liable to pay tax under the AVAT Act of 2003, it is taken note of that under Section 174(1) of the AGST Act of 2017, the provisions of AVAT Act of 2003 in respect of the six aforementioned goods are retained. In other words, in respect of the six aforementioned goods retained under Section 2(d) of the CST Act of 1956 and also included under Entry 54 of the State List of the Seven Schedule of the Constitution of India , the provisions of the AVAT Act of 2003 still continues to have its force and the concerned goods are leviable to a tax under the Act. Further upon perusal of the provision of the AVAT Act of 2003, no such provision in discernable, which provides that up

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ection 7(2) of the Act as provided in the circular dated 05.09.2017 would be unsustainable.
30. For a clarification we have to refer to the provisions of Clause-9 of the circular dated 05.09.2017 which inter alia provides that a dealer who is making interstate purchase of high speed diesel against Form-C for use in the manufacture or processing of a good, other than the aforesaid six goods retained under section 2(d) CST Act of 1956 would cease to be a dealer under section 7(2) of the Act with effect from 01.07.2017 as their liability to pay tax under the AVAT Act of 2003 had ceased to exist from 01.07.2017.
31. The circular dated 05.09.2017 providing for the withdrawal of the registration under section 7(2) of the CST Act of 1956 is based on the reason that such dealers involved in interstate purchase of the six goods and using them for a manufacturing of a good other than the six goods, are no longer leviable to a tax under the AVAT Act of 2003 from 01.07.2017. But as already discu

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dated 05.09.2017 that from 01.07.2017 onwards, the dealers dealing interstate purchase of high speed diesel and using it for manufacture of a good other than the six good are no longer liable to pay a tax under the AVAT Act of 2003 is incorrect and unacceptable.
33. As the very basis for withdrawing the registration under section 7(2) of the CST Act of 1956 is that from 01.07.2017 onwards the dealers dealing in interstate purchase of high speed diesel oil and using in for manufacture of good other than the six goods are not liable to pay a tax under the AVAT Act of 2003 and as discussed hereinabove, the very basis of not being liable to pay tax under the AVAT Act of 2003 being incorrect and unacceptable, the provision for withdrawing or enforcing a cession of the registration of such dealers under section 7(2) of the CST Act of 1956 as provided in Clause-9 of notification dated 05.09.2017 is also found to be unacceptable and unsustainable.
34. In the alternative, if the provision of

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ave the jurisdiction and authority to issue the Circular dated 05.09.2017 in exercise of its power under Section 3(5)(b) of the AVAT Act of 2003 or in the alternative under Section 105 of the Act, it would be apposite to examine the aforesaid provisions.
36. Section 3(5)(b) of the AVAT Act of 2003 is as follows:
“3.(5)(b) issue such orders, instructions and directions to such officers and persons as it may deem fit, for the proper administration of this Act.”
37. On the other hand, Section 105 of the AVAT Act of 2003 is as follows:
“105. Determination of disputed questions.- (1) If any question arises, otherwise than in a proceedings pending before an Appellate Authority or an Appellate Tribunal or a Court, where or not,-
(a) any person or association of persons, society, club, firm, company, corporation, undertaking or Government Department is a dealer; or
(b) any transaction is a sale or purchase and, if so, the sale or purchase price, as the case may be, therefore; or

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aimed, the Commissioner shall make an order determining such question:
Provided that, before giving such decision, the Commissioner may, in his discretion, ask an officer appointed to assist him to make such inquiries as he considers necessary for the decision of the question.
(2) Any registered dealer or any association of trade, commerce, industry may apply in the prescribed form and manner to the Commissioner for determination of such question and the Commissioner shall, after giving the applicant a reasonable opportunity of being heard, make an order determining such question.
(3) No question which arises from an order already passed, in the case of an applicant, by any authority under this Act or the Tribunal, shall be entertained for determination under this section.
(4) No decision of the Commissioner under this section shall affect the validity or operation of any order passed earlier by any Prescribed Authority, Appellate Authority, Appellate Tribunal or any Court.

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or permission of the Government. ”
38. Section 3(5)(b) of the AVAT Act clearly postulates a situation where it is deemed expedient that for the proper administration of the Act, the Commissioner may issue such orders, instructions and directions to the Officers and persons concerned, as it may deem fit. A reading of the Circular dated 05.09.2017 would indicate that the said Circular is not for the purpose of any proper administration of the Act, but was made for the purpose of making the levy of tax under the Act of 2003 to be inapplicable in respect of those dealers who purchases the six goods included in Entry 54 of the State list of the 7th Schedule to the Constitution of India and retained under Section 2(h) of the CST Act of 1956 and uses it for manufacturing a good other than the six goods.
39. By virtue of Section 174(1) of the AGST Act of 2017, the applicability of the AVAT Act of 2003 in respect of the six goods mentioned in Entry 54 of the State list under the 7th Schedule

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on arises as provided in Sub Clause (a) to Sub Clause (j) of Section 105 (1). But none of the provisions of Sub Clause (a) to Sub Clause (j) empowers the Commissioner to take away the statutory requirement of being leviable to a tax under the AVAT Act of 2003, if a dealer purchases any of the six goods mentioned in Entry 54 of the State list of the 7th Schedule to the Constitution of India and uses it for manufacture of a good which would be other than the said six goods.
42. From the said point of view also it cannot be said that the Circular dated 05.09.2017 was issued in exercise of power under Section 105 of the AVAT Act of 2003.
43. Both Section 3(5)(b) and Section 105 of the AVAT Act of 2003 confers jurisdiction on the Commissioner to decide any question for proper administration of the Act or to decide as to whether any dealer is liable to pay the taxes in a given circumstances. But the said power cannot be exercised to the extent to declare that the category of dealer, who ar

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dicated by the learned counsel for the respondents under which the Commissioner of Taxes could have issued the Circular dated 05.09.2017.
47. Accordingly, the contention raised that the Commissioner of Taxes, Assam did not have the jurisdiction to issue the Circular dated 05.09.2017 is answered in favour of the petitioner.
48. Clause 9 of the Circular dated 05.09.2017 also provides a clarification that the dealers making inter-state purchase, amongst others, of high speed diesel against Form C and using it for manufacture or processing of goods other than the six aforementioned goods would cease to be dealers under the CST Act of 1956 w.e.f. 01.07.2017 as their liability to pay taxes under the repealed Act of AVAT Act of 2003 had ceased w.e.f. 01.07.2017. The said clarification perhaps is an indication that such category of dealers who makes purchase of any of the six goods and uses it for manufacture of a good other than the six goods would not be covered by Section 8(3)(b) of the C

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retained under the AVAT Act of 2003, therefore, it cannot be said that it would not be subjected to a levy under the AVAT Act of 2003, merely because an interpretation is sought to be given that they would not be entitled to a levy of 2% of CST under Section 8(1) of the CST Act of 1956, as they do not satisfy the requirements of Section 8(3).
51. As it has been concluded that the registration of the petitioners u/s 7(2) of the CST Act of 1956 could not have been withdrawn for an underlying reason that the manufactured good referred in Section 8(3) of the CST Act of 1956 would also have to be amongst the six retained goods, this Court is of the view that the question whether the finished goods would also have to be amongst the six retained goods for the purpose of applying the provisions of Section 8(3) of the Act, need not be answered for the present.
It is so, inasmuch as, irrespective of a decision either in favour of the petitioner that the manufactured good need not be amongst th

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Debate Over Interest on Input Tax Credit Reversals in CGST Act, 2017: Is It Excessively Burdensome?
Act-Rules
GST
Input tax credit (ITC) – Section 16 of the CGST ACT, 2017 as amended – Reversal of credit after 180 days if not paid – Since upon payment of the due amount to the supplier, the recipient shall be eligible to avail ITC of the said amount, it is believed that liability to pay interest is too onerous and should be removed.
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GST
Input tax credit (ITC) – Section 16 of the CGST ACT, 2017 as amended – “bill-to-ship-to” situations – the registered person is deemed to have received the goods where the goods are delivered by the supplier to a recipient or any other person on the direction of the said registered person – It is now proposed to provide this deeming fiction in

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Amendment to CGST Act Section 13 Corrects Drafting Error on Service Supply Timing, Clarifies Invoice Provisions in Section 31.
Act-Rules
GST
Time of supply of services. – Section 13 of the CG

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Single invoice or multiple invoice
Query (Issue) Started By: – Rajesh kumar Dated:- 3-9-2018 Last Reply Date:- 4-9-2018 Goods and Services Tax – GST
Got 3 Replies
GST
R/s
I am dealer of electronic goods. I sell the invertor with battery to consumer. This is a mixed supply. My question is that can i make a single invoice and pay highest rate of gst on both product or make a multiple invoice for both products for different rate of taxes. Which is valid as per gst law?
Reply By Rajagopalan Ranganathan:
The Reply:
Sir,
According to Section 2 (74) of CGST Act, 2017 "”mixed supply” means two or more individual supplies of goods or services, or any combination thereof, made in conjunction with each other by a taxable person

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Amendment to Section 12 of CGST Act, 2017 clarifies time of supply rules, correcting previous drafting error.
Act-Rules
GST
Time of supply of goods. – Section 12 of the CGST ACT, 2017 as amen

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CGST Act Section 10: Composition taxpayers can supply services (excluding restaurants) up to 10% of last year's turnover or Rs. 5 lakh.
Act-Rules
GST
Composition levy. – Section 10 of the CGST ACT, 2017 as amended – to allow the composition taxpayers to supply services (other than restaurant services), for up to a value not exceeding ten per cent. of turnover in the preceding financial year, or five lakh rupees, whichever is higher.
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CGST Act Section 10: Composition Levy Limit Raised from Rs. 1 Crore to Rs. 1.5 Crore to Boost Trade.
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Composition levy. – Section 10 of the CGST ACT, 2017 as amended – The limit

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Amended Section 9(4) of CGST Act: Registered entities must pay GST on reverse charge for goods from unregistered suppliers.
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Levy and collection of GST on Reverse charge Basis –

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Section 7 of CGST Act 2017: Defining Taxable Supply Scope for Goods and Services Under GST Rules.
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GST
Scope of supply – Section 7 of the CGST ACT, 2017 as amended – supply of goods

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CGST Act Section 2(102): Securities Excluded from “Services” Definition, But Related Charges Subject to GST.
Act-Rules
GST
Meaning and scope of the term “Services” – Definitions. – Section 2(102) of the CGST ACT, 2017 as amended – Although ‘securities’ has been excluded from the definition of ‘goods’ and ‘services’, if some service charges or service fees or documentation fees or broking charges or such like fees or charges are charged in relation to transactions in securiti

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Special Status for Six Karnataka Districts under Article 371J; Defined as “Local Authority” in CGST Act, 2017 Section 2(69.
Act-Rules
GST
Local Authority – Definitions. – Section 2(69) of the CGST ACT, 2017 as amended – Article 371J of the Constitution grants special status to 6 backward districts of Karnataka – Hyderabad region. – It is being added now based on the request received from the State of Karnataka.
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CGST Act 2017: Amendment in Section 2(35) corrects typographical error in Cost Accountant definition for clarity.
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Cost Accountant Definitions. – Section 2(35) of the CGST ACT, 2

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CGST Act 2017 Update: Section 2(18) “Business Vertical” Definition Removed, Alters Business Classification Under GST Framework.
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Business vertical – Definitions. – Section 2(18)

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Section 2(17)(h) CGST Act: Ambiguity Arises from Removal of “Services” in Race Club Business Definition.
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Business – Definitions. – Section 2(17)(h) of the CGST ACT, 2017 as amen

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National Anti-Profiteering Authority Excluded from 'Adjudicating Authority' in CGST Act; CBEC Now CBIC in Updates.
Act-Rules
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Adjudicating authority – Definitions. – Section 2(4) of the CGST ACT, 2017 as amended – National AntiProfiteering Authority constituted by the Central Government under section 171 of the CGST Act excluded from the definition of ‘adjudicating authority’ – Reference ot CBEC changed to CBIC
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Goods and Service Tax
Query (Issue) Started By: – Ethirajan Parthasarathy Dated:- 3-9-2018 Last Reply Date:- 4-9-2018 Goods and Services Tax – GST
Got 1 Reply
GST
A developer engages various contractors for putting up the Building.
A percentage of contractor's Bill is kept as “retention money” which will be paid after long duration. Similarly some portion of Bill is not paid and kept as “hold” money for defective work which will be paid after defect is set right
Both the above cou

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Input Tax Credit
Query (Issue) Started By: – Ethirajan Parthasarathy Dated:- 3-9-2018 Last Reply Date:- 4-9-2018 Goods and Services Tax – GST
Got 2 Replies
GST
* Section 16(4) Provides for Time Limit regarding Input tax set off.
It is not clear to me whether the time limit Apllies for Input tax “Availment” or Input tax 'Credit”
Reply By Praveen Nair:
The Reply:
As per Sec 16(4) of the CGST Act, “A registered person shall not be entitled to take input tax credit in respect of any invoice or debit note for supply of goods or services or both after the due date of furnishing of the return under section 39 for the month of September following the end of financial year to which such invoice or invoice relating to such debit note

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Imports by composition dealer
Query (Issue) Started By: – nagendra v Dated:- 3-9-2018 Last Reply Date:- 4-9-2018 Goods and Services Tax – GST
Got 1 Reply
GST
For Regular dealer IGST will

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Refund of GST
Query (Issue) Started By: – BINDLASDUPLUX LIMITED Dated:- 3-9-2018 Last Reply Date:- 6-9-2018 Goods and Services Tax – GST
Got 6 Replies
GST
Dear Sir(s)
A Trading company say Mr. X (deals in paper, paper machines etc.) purchased Kraft Paper (IGST @12%) from paper manufacturing company in India.
Thereafter Mr. X sold the goods to Mr. Y (merchant exporter) under not. no. 41/2017 Integrated Tax (Rate) Dt. 23.10.2017 charging 0.10 % IGST. Now the merchant exporter Mr. Y export the goods out of India.
My question here is that how Mr. X can claim the IGST which is unutilized.
thanks
CA Devkant Agarwal
Reply By DR.MARIAPPAN GOVINDARAJAN:
The Reply:
Whether the company is paying any other integrated tax?
Reply By

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Goods).
However he will be eligible for ITC only for (12%-.10% = 11.90%) under refund mechanism.
The calculation for Inverted duty structure in system enabled in GST Portal.
Regards
Reply By BINDLAS DUPLUX LIMITED:
The Reply:
thanks
Reply By Yash Jain:
The Reply:
Sir,
But do ensure that you fulfill all the conditions as being laid for supply to merchant exporter.
Refer the notification for merchandise trade. There are some of the following conditions
1. Ensure that goods are exported in 90 days
2. Shipping bill should mention ur name.
3. You not being manufacturer will not get incentive/drawback
4. Your AO should be give PO by merchant exporter.
Many more conditions. Instead charge gst full @12%, and let merchant exporter ta

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WHEN GTA CAN OPT FOR FCM UNDER GST
Query (Issue) Started By: – KULDEEPSINGH KHANGAROT Dated:- 3-9-2018 Last Reply Date:- 4-9-2018 Goods and Services Tax – GST
Got 2 Replies
GST
Dear Sir, My one of client is a registered GTA , but even though it was registered we were raising Transport Services Invoices on Reverse charge , and on sale of old vehicles we were raising Invoices on forward charge.
Now, from 01.09.2018, my client wants to raise all the Invoices on Forward charge basis and also , want to take credit of Inputs of the same. SO, can he opt from middle of year the option of migrating from RCM to FCM?
Reply By Praveen Nair:
The Reply:
If the GTA wants to pay GST then as per Notification No. 20/2017-Central Tax (Rate) 22

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REVERSE CHARGE UNDER ‘IGST’ ACT
By: – DR.MARIAPPAN GOVINDARAJAN
Goods and Services Tax – GST
Dated:- 3-9-2018

Reverse Charge
Section 2(24) of the Integrated Goods and Services Tax Act, 2017 ('Act' for short) provides that words and expressions used and not defined in this Act but defined in the Central Goods and Services Tax Act, the Union Territory Goods and Services Tax Act and the Goods and Services Tax (Compensation to States) Act shall have the same meaning as assigned to them in those Acts. The expression 'reverse charge' has not been defined in the Act. Therefore we may take the definition as contained in CGST Act, 2017. Section 2(98) of CGST Act defines the phrase 'reverse charge' as the liability to pay tax by the recipient of supply of goods or services or both instead of the supplier of such goods or services or both under sub-section (3) or sub-section (4) of section 9, or under sub-section (3) or subsection (4) of section 5 of the Integrated Goods and

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es or both.
Vide Notification No. 32/2017-Central Tax (Rate), dated 13.10.2017, the Central Government exempted the inter-State supply of goods or services or both received by a registered person from any supplier, who is not registered, from the whole of the integrated tax leviable thereon under section 5(4) of the said Act. The said time line has been extended to by the Notifications as mentioned below-
* Vide Notification No.11/2018-IGST (Rate), dated 23.03.2018 the exemption was granted up to 30.06.2018;
* Vide Notification No. 13/2018-IGST (Rate), dated 29.06.2018 the exemption was further extended up to 30.09.2018;
* Vide Notification No. 23/2018-IGST (Rate), dated 06.08.2018, the exemption is further granted for a long term i.e., up to 30.09.2019.
The Integrated Goods and Services Tax (Amendment) Act, 2018 substituted new section for section 5(4). The newly substituted section 5(4) provides that The Government may, on the recommendations of the Council, by notification,

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iculturist
Any registered person
2.
1404 90 10
Bidi wrapper leaves (tendu)
Agriculturist
Any registered person
3.
2401
Tobacco leaves
Agriculturist
Any registered person
4.
5004 to 5006
Silk yarn
Any person who manufactures silk yarn from raw silk or silk worm cocoons for supply of silk yarn
Any registered person
4A.
5201
Raw cotton (with effect from 15.11.2017)
Agriculturist
Any registered person
5.
–
Supply of lottery.
State Government, Union Territory or any local authority
Lottery distributor or selling agent. Explanation.- For the purposes of this entry, lottery distributor or selling agent has the same meaning as assigned to it in clause (c) of Rule 2 of the Lotteries (Regulation) Rules, 2010, made under the provisions of sub section 1 of section 11 of the Lotteries (Regulations) Act, 1998 (17 of 1998).
6.
Any Chapter
Used vehicles, seized and confiscated goods, old and used goods, waste and scrap (with effect from 13.10.2017)
Central Government, Sta

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rt agency (GTA) in respect of transportation of goods by road to-
(a) any factory registered under or governed by the Factories Act, 1948(63 of 1948);or
(b) any society registered under the Societies Registration Act, 1860 (21 of 1860) or under any other law for the time being in force in any part of India; or
(c) any co-operative society established by or under any law; or
(d) any person registered under the Central Goods and Services Tax Act or the Integrated Goods and Services Tax Act or the State Goods and Services Tax Act or the Union Territory Goods and Services Tax Act; or
(e) any body corporate established, by or under any law; or
(f) any partnership firm whether registered or not under any law including association of persons; or
(g) any casual taxable person.
Goods Transport Agency (GTA) *[who has not paid integrated tax at the rate of 12%]
* inserted with effect from 22.08.2017.
(a) Any factory registered under or governed by the Factories Act, 1948(63 of 1948); o

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before any court, tribunal or authority.
An individual advocate including a senior advocate or firm of advocates.
Any business entity located in the taxable territory.
4
Services supplied by an arbitral tribunal to a business entity.
An arbitral tribunal.
Any business entity located in the taxable territory.
5
Services provided by way of sponsorship to any body corporate or partnership firm.
Any person
Any body corporate or partnership firm located in the taxable territory.
6
Services supplied by the Central Government, State Government, Union territory or local authority to a business entity excluding, –
(1) renting of immovable property, and
(2) services specified below-
(i) services by the Department of Posts by way of speed post, express parcel post, life insurance, and agency services provided to a person other than Central Government, State Government or Union territory or local authority;
(ii) services in relation to an aircraft or a vessel, inside or outside th

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ce business.
An insurance agent
Any person carrying on insurance business, located in the taxable territory.
9
Services supplied by a recovery agent to a banking company or a financial institution or a non-banking financial company.
A recovery agent
A banking company or a financial institution or a non-banking financial company, located in the taxable territory.
10
Services supplied by a person located in non- taxable territory by way of transportation of goods by a vessel from a place outside India up to the customs station of clearance in India.
A person located in non-taxable territory
Importer, as defined in clause (26) of section 2 of the Customs Act, 1962(52 of 1962), located in the taxable territory.
11
Supply of services by an author, music composer, photographer, artist or the like by way of transfer or permitting the use or enjoyment of a copyright covered under clause (a) of sub-section (1) of section 13 of the Copyright Act, 1957 relating to original literary, d

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vocate including a senior advocate by way of representational services before any court, tribunal or authority, directly or indirectly, to any business entity located in the taxable territory, including where contract for provision of such service has been entered through another advocate or a firm of advocates, or by a firm of advocates, by way of legal services, to a business entity."
Registration
Section 20(v) of the Act provides that the provisions of CGST Act for registration will be applicable for IGST Act.
Section 24 of CGST Act provides for compulsory registration under CGST Act. Section 24(iii) provides that the persons who are required to pay tax under reverse charge is compulsorily liable to register under CGST.
The threshold exemption of ₹ 20 lakhs or ₹ 10 lakhs (to special category of States but the CGST (Amendment) Bill, proposes to increase this limit to ₹ 20 lakhs) is not applicable to the reverse charge mechanism.
Composition scheme
Secti

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or
* the date immediately following 30 days from the date of issue of invoice or any other document, by whatever name called, in lieu thereof by the supplier.
Where it is not possible to determine the time of supply as above, the time of supply shall be the date of entry in the books of account of the recipient of supply.
Time of supply of services
Section 13(3) of CGST Act provides that In case of supplies in respect of which tax is paid or liable to be paid on reverse charge basis, the time of supply shall be the earlier of the following dates, namely:-
* the date of payment as entered in the books of account of the recipient or the date on which the payment is debited in his bank account, whichever is earlier; or
* the date immediately following 60 days from the date of issue of invoice or any other document, by whatever name called, in lieu thereof by the supplier.
Where it is not possible to determine the time of supply as above, the time of supply shall be the date of e

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equired to be issued section 31(3)(f) of CGST Act, a registered person may issue a consolidated invoice at the end of a month for supplies covered under section 5(4), the aggregate value of such supplies exceeds rupees five thousand in a day from any or all the suppliers.
Payment of tax
Section 20(ix) of the Act provides that the provisions of CGST Act for payment of tax shall be applicable to IGST also.
Payment of Tax under reverse charge mechanism shall be paid through Electronic Cash Ledger. Reverse Charge liability cannot be paid through Input Tax Credit. Section 31(3) (g) CGST Act provides that a registered person who is liable to pay tax under section 5(3) or 5(4) shall issue a payment voucher at the time of making payment to the supplier. The said payment voucher shall contain the details as specified in Rule 52 of CGST Rules, 2017. The payment of tax on reverse charge is to be paid on or before 20th of the succeeding month. The payment shall be made only in cash and not to

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NEPAL EXPORT THRU LUT AND REMITTED THRU RUPEES BUT IN GSTR1 RETURN WHERE TO SHOW PL HELP
Query (Issue) Started By: – nandankumar roy Dated:- 3-9-2018 Last Reply Date:- 4-9-2018 Goods and Services Tax – GST
Got 2 Replies
GST
DEAR SIR, PL HELP REGARDING OUR NEPAL EXPORT UNDER LUT AND RECD AMT THRU RUPEES BUT IN GSTR1 RETURN WHERE TO SHOW IN ABSENCE OF SHIPPING BILL AND PORT CODE .
WITH REGARDS,
N K ROY
9427181604
Reply By ANITA BHADRA:
The Reply:
Write your Bill of Export No. (wh

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Seeks to prescribe the due dates for quarterly furnishing of FORM GSTR-1 for those taxpayers with aggregate turnover of upto 1.5 crores for the period from July, 2018 to April, 2019.
38/1/2017-Fin(R&C)(66) Dated:- 3-9-2018 Goa SGST
GST – States
Goa SGST
Goa SGST
GOVERNMENT OF GOA
Department of Finance
Revenue & Control Division
___
Notification
38/1/2017-Fin(R&C)(66)
In exercise of the powers conferred by section 148 of the Goa Goods and Services Tax, 2017 (Goa Act 4 of 2017) (hereafter in this notification referred to as the said Act), the Government of Goa, on the recommendations of the Council, hereby notifies the registered persons having aggregate turnover of up to 1.5 crore rupees in the preceding financial year o

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GST – Tamil Nadu Goods and Services Tax Act, 2017 – Constitution of the Tamil Nadu Authority for Advance Ruling – Notified – Erratum – Issued.
G.O. Ms. No. 111 Dated:- 3-9-2018 Tamil Nadu SGST
GST – States
Tamil Nadu SGST
Tamil Nadu SGST
COMMERCIAL TAXES AND REGISTRATION (B1) DEPARTMENT
G.O. Ms. No. 111
Dated: 03.09.2018
Aavani-18
Thiruvalluvar Aandu, 2049
NOTIFICATION
The following erratum is issued to the Commercial Taxes and Registration Department Notification No.II(2)/C

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