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GST – States – S.O.73/P.A.5/2017/S.164/2018 – Dated:- 21-5-2018 – GOVERNMENT OF PUNJAB DEPARTMENT OF EXCISE AND TAXATION (EXCISE AND TAXATION-II BRANCH) NOTIFICATION The 21st May, 2018 No. S.O.73/P.A.5/2017/S.164/2018.- In exercise of the powers conferred by section 164 of the Punjab Goods and Services Tax Act, 2017 (Punjab Act No.5 of 2017), and all other powers enabling him in this behalf, the Governor of Punjab, on the recommendations of the Council, is pleased to appoint the 1st day of Apri

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2018 (10) TMI 305 – AUTHORITY FOR ADVANCE RULING – UTTAR PRADESH – 2018 (17) G. S. T. L. 55 (A. A. R. – GST) – Classification of an item – Peeled Sliced Pineapple, put up in airtight unit container in sugar syrup.
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Held that:- Canned Pineapple Slices, dipped in Sugar Syrup comes within Tariff item no. 2008 and N/N. 01/2017-C.T. (Rate) dated 28-06-2017 issued by Central Government and Notification KANI-2-836/XI-9(47)/17-U.P. Act-1-2017-Order-(06)-2017 dated 30-06-2017, schedule-II and taxab

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2018 (12) TMI 847 – CESTAT KOLKATA – TMI – CENVAT Credit – input services – services received by them from the various transporters towards outward transportation of excisable goods from the appellant’s factory to the buyer’s premises (carriage outwards) – period 2006-2007 and 2007-2008 – Held that:- The present issue is no more res-integra and is decided in favour of the appellant in view of the decision of the Hon’ble Supreme Court in the case of Commr. of Customs, Central Excise & S.Tax, Guntur Vs. Andhra Sugars Ltd. [2018 (2) TMI 285 – SUPREME COURT OF INDIA], where it was held that Once it is accepted that place of removal is the factory premises of the assessee, outward transportation ‘from the said place’ would clearly amount to input service.
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Credit allowed – appeal allowed – decided in favor of appellant.
– Ex. Appeal No.76045/18 – FO/76576/2018 – Dated:- 21-5-2018 – SHRI P. K. CHOUDHARY, JUDICIAL MEMBER Shri S.P. Siddhanta, Consultant for the Appellant (s) Shri S. S

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the relevant Paragraphs are reproduced below: 6. As mentioned above, in these cases, the assessees are claiming Cenvat credit in respect of service tax paid on outward transportation from their factory to the premises of customers. As per the Department, outward transportation engaged for removal of goods from factory to customer premises cannot be considered as an input service since premises of customer is not recognized as a place of removal under the Central Excise Act. To put it differently, the Department contends that the outward transportation provided beyond the place of removal is not eligible for input service for availing Cenvat credit. 7. Having regard to the definition of input service that was prevailing at the relevant time i.e. prior to April 1, 2008, the aforesaid contention of the Department cannot be accepted. As per the said definition, service used by the manufacturer of clearance of final products from the place of removal to the warehouse or customer s place etc

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val are to be treated as input service. The first clause does not mention transport service in particular. The second clause restricts transport service credit upto the place of removal. When these two clauses are read together, it becomes clear that transport service credit cannot go beyond transport upto the place of removal. The two clauses, the one dealing with general provision and other dealing with a specific item, are not to be read disjunctively so as to bring about conflict to defeat the laws scheme. The purpose of interpretation is to find harmony and reconciliation among the various provisions . Similarly, in the case of M/s. Ultratech Cements Ltd. v. CCE, Bhavnagar – 2007-TIOL-429-CESTAT-AHM, it was held that after the final products are cleared from the place of removal, there will be no scope of subsequent use of service to be treated as input. The above observations and views explain the scope of the relevant provisions clearly, correctly and in accordance with the lega

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herein the excisable goods have been permitted to be stored without payment of duty; (iii) a depot, premises of a consignment agent or any other place or premises from where the excisable goods are to be sold after their clearance from the factory; from where such goods are removed. It is, therefore, clear that for a manufacturer/consignor, the eligibility to avail credit of the service tax paid on the transportation during removal of excisable goods would depend upon the place of removal as per the definition. In case of a factory gate sale, sale from a non-duty paid warehouse, or from a duty paid depot (from where the excisable goods are sold, after their clearance from the factory), the determination of the place of removal does not pose much problem. However, there may be situations where the manufacturer/consignor may claim that the sale has taken place at the destination point because in terms of the sale contract/agreement (i) the ownership of goods and the property in the goods

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, dealt with unamended Rule 2(l) of Rules, 2004. The three conditions which were mentioned explaining the place of removal are defined in Section 4 of the Act. It is not the case of the Department that the three conditions laid down in the said Circular are not satisfied. If we accept the contention of the Department, it would nullify the effect of the word from the place of removal appearing in the aforesaid definition. Once it is accepted that place of removal is the factory premises of the assessee, outward transportation from the said place would clearly amount to input service. That place can be warehouse of the manufacturer or it can be customer s place if from the place of removal the goods are directly dispatched to the place of the customer. One such outbound transportation from the place of removal gets covered by the definition of input service. 5. Respectfully following the ratio of the above judgement of the Hon ble Supreme Court in the case of Andhra Sugars Ltd. (supra),

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Goods and Services Tax – Started By: – Kanhu Padhy – Dated:- 20-5-2018 Last Replied Date:- 21-5-2018 – This is an issue of User Id Cancellation/de-activation from accessing of GST Common Portal. It has been seen that some of the companies/traders/vendors/enterprises might not in a position to submit the REG-26 Form for the migration purpose. In the consequence, those owners/representatives of the firms are not in a position to submit further monthly returns like, GSTR-1, 2,, & 3, 3B,. etc. due to the None-availability of access to the GST portal for submission of taxes which were/are due . In this context, I would like to draw the attention of the FORUM members to discuss on this issue, and raise it to the GST Commissioner's meetin

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Goods and Services Tax – Daman and Diu – E-way bill comes into effect w.e.f. 25-5-2018 – Central Government rescinds the notification number G.S.R. 318(E), dated the 31st March, 2018 – Notification – TMI Updates – Highlights

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Goods and Services Tax – Dadra and Nagar Haveli – E-way bill comes into effect w.e.f. 25-5-2018 – Central Government rescinds the notification number G.S.R. 317(E) dated the 31st March, 2018 – Notification – TMI Updates – Highlights

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Goods and Services Tax – Chandigarh – E-way bill comes into effect w.e.f. 25-5-2018 – Central Government, rescinds the notification number G.S.R. 316(E) dated the 31st March, 2018 – Notification – TMI Updates – Highlights

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Goods and Services Tax – Rate of GST – Even though the meal, snacks, teas are provided to and consumed by the workers/ employees of the recipient, the applicant is providing service to the recipient a

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Goods and Services Tax – GST – By: – CA.LALIT MUNOYAT – Dated:- 19-5-2018 Last Replied Date:- 20-5-2018 – Treatment of GST for Credit Note for Discount given post supply Sec 15 (3) provides that he value of the supply shall not include any post sales discount except such discount is established in terms of an agreement entered into at or before the time of such supply and specifically linked to relevant invoices; and input tax credit as is attributable to the discount on the basis of document issued by the supplier has been reversed by the recipient of the supply. As per sec 34. (1) -Credit & Debit Notes : A supplier may issue to the recipient a credit note for a post sales discount subject to the condition that no reduction in output

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has been passed on to the ultimate consumer. However there is no such presumption while reducing the liability to GST due to issue of credit note. The only requirement is that the input tax credit as is attributable to the discount on the basis of document issued by the supplier has been reversed by the recipient of the supply. Question At the time of assessment how would the supplier prove that the input tax credit as is attributable to the discount on the basis of document issued by the supplier has been reversed by the recipient of the supply. There is no way for the supplier to verify it from the recipient. In such a case what will be the consequence if the supplier takes anyone of the following meaures: The supplier issue the credit no

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Goods and Services Tax – GST – By: – Alkesh Jani – Dated:- 19-5-2018 Last Replied Date:- 17-8-2018 – The Input Tax Credit is one of the key features of Indirect tax. The objective of ITC is to avoid cascading effect on tax. GST is supply based and the entire supply chain would be subject to GST. As the tax charged by the Central or the State Governments would be part of the same tax regime, credit of tax paid at every stage would be available as set-off for payment of tax at every subsequent stage and ultimately to be borne by the end user of goods or service or both. 2. The main objective is to avoid cascading effect on tax, but always been major part of litigation matter and ambiguity. The ITC has been always an issue of discussion and subject of litigation both by department and tax payer (assessee in erstwhile law). The erstwhile law i.e. Central Excise, Service Tax, which was based on production or manufacture, while GST is supply based, therefore, we need to come out of the old

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ed on inputs and input services, which are to be used or intended to be used in the course or furtherance of business. Here, the Section mandates that inputs and input services should have nexus with the business. It is now obligatory on the part of the tax payer to prove the nexus of ITC with regards to business. Further, the input tax credit has been defined in Section (2) (63) of CGST, Act, 2017 and definition of input , input service and input tax which is given at Section (2) (59), (60) and (62) respectively, being pertinent to reproduced below:- (63) input tax credit means the credit of input tax; (59) input means any goods other than capital goods used or intended to be used by a supplier in the course or furtherance of business; (60) input service means any service used or intended to be used by a supplier in the course or furtherance of business; (62) input tax in relation to a registered person, means the central tax, State tax, integrated tax or Union territory tax charged o

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shall be entitled to the credit of any input tax in respect of any supply of goods or services or both to him unless,- (a) he is in possession of a tax invoice or debit note issued by a supplier registered under this Act, or such other tax paying documents as may be prescribed; (b) he has received the goods or services or both. Explanation.-For the purposes of this clause, it shall be deemed that the registered person has received the goods where the goods are delivered by the supplier to a recipient or any other person on the direction of such registered person, whether acting as an agent or otherwise, before or during movement of goods, either by way of transfer of documents of title to goods or otherwise; From above, it becomes clear that ITC can be availed by a registered person on the basis of tax invoice and debit note issued by the supplier of goods or services and the same should be in the possession of recipient of goods or service or both. It is also important that goods and/

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ion 39: Provided that where the goods against an invoice are received in lots or installments, the registered person shall be entitled to take credit upon receipt of the last lot or installment: Provided further that where a recipient fails to pay to the supplier of goods or services or both, other than the supplies on which tax is payable on reverse charge basis, the amount towards the value of supply along with tax payable thereon within a period of one hundred and eighty days from the date of issue of invoice by the supplier, an amount equal to the input tax credit availed by the recipient shall be added to his output tax liability, along with interest thereon, in such manner as may be prescribed: Provided also that the recipient shall be entitled to avail of the credit of input tax on payment made by him of the amount towards the value of supply of goods or services or both along with tax payable thereon . This sub-clause restricts that recipient of the inputs and/or input services

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-tax Act, 1961, the input tax credit on the said tax component shall not be allowed . This sub-clause deal with the ITC availed on the capital goods and plant and machinery. For better understanding the definition of capital goods is necessary and it is defined at Section (2)(19) of CGST Act, 2017, is as under (19) capital goods means goods, the value of which is capitalised in the books of account of the person claiming the input tax credit and which are used or intended to be used in the course or furtherance of business; In erstwhile law the capital goods were separately defined but in GST, it is liberalized and indirectly restricted, to the value which is capitalized in books of Account. On going through the Balance sheet, we can know the supplies which are capitalized. GST restricts to double benefit of claiming ITC and also deprecation. The plant and machinery are defined by way of explanation given after the sub-section 6 of Section 17 of CGST Act, 2017 and is given below:- Expl

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f 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 pertains or furnishing of the relevant annual return, whichever is earlier . The sub-section urges on taking the ITC as soon as goods and / or services are received along with the documents. In some scenario or due to any reason person fails to take such credit the limit is to avail such credit before due date of furnishing the return i.e. GSTR-1 for the month of September following the end of financial year to which such invoice pertains. However, as per the design of GST, returns as per law has been changed, this may create ambiguity and litigation may arise in future. Hopefully, Government may come out with some clarification. 8. From above, we can conclude that, (i) ITC of inputs and/or input services can be availed only by the registered person; (ii) ITC availed on inp

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Goods and Services Tax – GST – By: – CA Akash Phophalia – Dated:- 19-5-2018 Last Replied Date:- 20-5-2018 – 1. Inverted Duty Structure – Meaning- Inverted Duty Structure means a situation where the tax rate on inputs is higher than tax rates on outward supplies. Thus where taxes paid on inputs are at a rate higher than the taxes paid on outward supplies, such situation is an Inward Duty Structure. For instance in case of steel utensils manufacturing firm, rate of tax on inputs i.e. SS Patti/Patti is 18% whereas rate of tax on final product i.e. Utensils is 12%. This is good example of inverted duty structure. 2. Refund- Inverted duty structure generally results in accumulation of excess taxes credit. Since rate of tax on outward supplies is lesser than rate of tax on inputs this results in accumulations of unutilized input tax credit and thus need of refund arises. 3. Legal Provisions- Section 54(3) of the CGST Act 2017 provides (relevant extracts) Subject to the provisions of sub-sec

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lanation to the Section 54 which reads as under- Refund includes refund of tax paid on zero-rated supplies of goods or services or both or on inputs or input services used in making such zero-rated supplies, or refund of tax on the supply of goods regarded as deemed exports, or refund of unutilized input tax credit as provided under sub-section(3). Thus the definition of refund conveys different meaning for different situations resulting in refund of unutilized input tax credit which can be summarized as:- Nature of Supply Refund of taxes paid Remarks Zero-rated supply (With payment of tax) Taxes paid on Zero-rated supplies Taxes can be paid either by utilization of input tax credit or can be paid using cash. Here, input tax credit is wide enough to cover input, input services and capital goods. Zero-rated supply (Without payment of tax) Input tax credit of input and input services Input tax credit of capital goods is restricted by narrowing down the meaning of refund. Deemed Exports T

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tive State Goods and Services Tax Act; or (e) the tax payable under the provisions of sub-section (3) and sub-section (4) of section 7 of the Union Territory Goods and Services Tax Act, but does not include the tax paid under the composition of levy. Thus input tax credit shall mean taxes paid on goods and services whether under direct charge or reverse charge whether on domestic procurement or on importation. But credit of composition fees shall not be admissible. Hence, the term used input tax credit is wide enough to cover all eligible input taxes paid by the registered taxable person. And wherever the said term shall be used it shall convey the same meaning of including all eligible input tax credits except where the meaning is restricted for the purpose of the particular section or rule. (c) Eligibility The law provides the condition/situation for eligibility of claiming refund of unutilized accumulated input tax credit and the said condition/situation is linked with the rate of t

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nd of input tax credit on account of inverted duty structure the law no where imposes any restriction as to refund of taxes on inputs, input services or capital goods. Thus under section 54(3) taxes paid on inputs, input services or capital goods are admissible. However the same is to be understood with the explanation provided for meaning of refund. Meaning of refund for inverted duty structure is wide enough to cover taxes paid on inputs, input services and capital goods. (e) Rule 89(5) of CGST Rules 2017 – 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 = {(Turnover of inverted rated supply of goods and services) * Net ITC / Adjusted Total Turnover} – tax payable on such inverted rated supply of goods and services. Explanation:- For the purposes of this sub-rule, the expressions- (a) Net ITC shall mean input tax credit availed on inputs during the relevant period other than

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GST – States – 23/2018 –State Tax – Dated:- 19-5-2018 – COMMISSIONER OF STATE TAX, MAHARASHTRA STATE GST Bhavan, Mazgaon, Mumbai 400 010, dated the 19th May 2018. NOTIFICATION Notification No. 23/2018 -State Tax. No. JC(HQ)-1/GST/2018/Noti/Return/ADM-8.-In exercise of the powers conferred by section 168 of the Maharashtra Goods and Services Tax Act, 2017 (Mah. XLIII of 2017) (hereafter in this notification referred to as the Act ) read with sub-rule (5) of rule 61 of the Maharashtra Goods and S

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GST – States – 008/2018-GST – Dated:- 19-5-2018 – GOVERNMENT OF ASSAM ORDERS BY THE GOVERNOR FINANCE (TAXATION) DEPARTMENT NOTIFICATION NO.8/2018-GST [NO.CT/GST-14/2017/114], The 19th May, 2018 In exercise of the powers conferred by sub-rule (5) of rule 61 of the Assam Goods and Services Tax Rules, 2017, the Commissioner, on the recommendations of the Council, hereby makes the following amendment in the notification of Government of Assam issued by Commissioner of State Tax. Assam vide No.CT/GS

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2018 (9) TMI 234 – AUTHORITY FOR ADVANCE RULINGS MAHARASHTRA – 2018 (16) G. S. T. L. 311 (A. A. R. – GST) – Input Tax Credit – transition to GST Regime – transitional provisions u/s 140 – Whether input tax credit is available against unutilised cenvat credit such as Education cess, Secondary & Higher secondary Education cess & Krishi Kalyan cess lying in our books of Accounts? – Sub-rule (5B) of Rule 3 of the CCR.
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Held that:- Education Cess (EC) was levied under the provisions of the Finance Act, 2004 with effect from 10.9.2004 and the CCR vide Rule 3(1) notified that the manufacturer or provider of taxable (output) service shall be allowed to take credit of EC. The CCR also mandated that such credit of EC could be utilized only for payment of EC on excisable goods or taxable services. Under both, the service tax laws and the central excise laws, EC was not supposed to be used for making duty/ tax payments – Similarly, Secondary and Higher Education Cess (SHEC) was levied by the

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ice tax. In view thereof, the CENVAT credit as referred to in subsection (1) of section 140 would not include the credit in respect of KKC. Therefore, the credit of taxes which are not covered in the definition of eligible duties in Section 140 cannot be availed.
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Ruling – The input tax credit against unutilised cenvat credit such as Education cess, Secondary & Higher secondary Education cess & Krishi Kalyan cess lying in our books of Accounts is not available. – GST-ARA-25/2017-18/B-34 Dated:- 19-5-2018 – SHRI B.V. BORHADE, AND SHRI PANKAJ KUMAR, MEMBER PROCEEDINGS (under section 98 of the Central Goods and Services Tax Act, 2017 and the Maharashtra Goods and Services Tax Act, 2017) The present application has been filed under section 97 of the Central Goods and Services Tax Act, 2017 and the Maharashtra Goods and Services Tax Act, 2017 [hereinafter referred to as the CGST Act and MGST Act ] by CMI FPE LIMITED, the applicant, seeking an advance ruling in respect of the following

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n required in ongoing projects. We are showing inventory value net of provisions in notes forming part of the financial statement under the head inventories. It is only a provision in books of accounts and not a write off of inventory value. As per Company policy, 25%, 50% and 100% provision will be made for materials not moved 2 year, 3 year and 4 year respectively. As per 3 (5B) of cenvat credit rules, 2004 we reverse the cenvat credit when the provision for write off inventory value is made in our books of accounts. As per above said rules re-credit can be taken only when such goods are subsequently used. From October-2014 to 30/06/2017 we have debited total amount ₹ 52,65,551/- Out of ₹ 52,65,551/- we availed re-credit for ₹ 29,83,759/- and (for material subsequently in production) balance credit to be availed is ₹ 22,81,792/-. As on 30/06/2017 we have the total debit balance of ₹ 22,81,792/- In post GST there are no specific provisions available eithe

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condary Education cess & Krishi Kalyan cess lying in our books of Accounts? Statement of relevant facts having a bearing on the question raised- Education Cess was levied vide Section 91, read with Section 93 on excisable goods and on taxable services vide Section 91, read with Section 95 of the Finance Act, 2004 with effect from 10.9.2004. The Cenvat Credit Rules, 2004 also notified from the same date, vide Rule 3(1) provided that the manufacturer or provider of taxable (output) service shall be allowed to take credit, inter alia, of the Education Cess. Secondary and Higher Education Cess (SHE Cess) was levied on excisable goods and taxable services with effect from 12.5.2007 under Section 136, read with Sections 138 & 140 respectively of the Finance Act, 2007. Correspondingly, the Cenvat Credit Rules, 2004 were amended for allowing credit of the SHE Cess. Through Rule 3(7)(b) of the Cenvat Credit Rules, 2004, read with provisos thereunder it was mandated that credit of educat

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me the Education Cess and SHE Cess in Central Excise duty. In effect, the general rate of Central Excise Duty of 12.36% including the cesses is being rounded off to 12.5% (para 118). The FM also stated that Introduction of GST is eagerly awaited by Trade and Industry. To facilitate a smooth transition to levy of tax on services by both the Centre and the States, it is proposed to increase the present rate of Service Tax plus education cesses from 12.36% ton consolidated rate of 14% .(para 121) Thus, it was generally expected by the trade and industry that as the Education Cesses have been subsumed as part of Excise Duty or Service Tax, the existing balance of the cesses would be allowed to be utilised for payment of Excise duty or Service Tax. However, no amendments were made to Rule 3(7)(b) of the Cenvat Credit Rules, 2004 to this effect. However Notification No.12/2015-CE(NT) amended second proviso to Rule 3(7)(b) for allowing utilisation of EC paid on inputs and capital goods receiv

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ove amendment was carried out. Similarly, the fact that a service provider could have taken credit on the balance fifty percent of EC on capital goods received during the previous year by 1.4.2015 itself was also not reckoned. The crucial aspect which is relevant for the present discussion is that all through the above process, till the introduction of GST, there was no change in Rule 3(1) and it continued to provide that a manufacturer or producer of final products or a provider of output service shall be allowed to take credit (hereinafter referred to as the CENVAT Credit) of: The education cess on excisable goods leviable under section 91, read with section 93 of the Finance Act, 2004. The Secondary and Higher education cess on excisable goods leviable under section 136, read with Section 138 of the Finance Act, 2007, The cess on taxable service leviable under section 91, read with section 95 of the Finance Act, 2004 the Secondary and Higher education cess on taxable services leviab

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it and thereby increase the cost of procurement of the inputs/input services after a few years. The Hon. Supreme Court in the case of Collector of Central Excise, v. Dai Ichi Karkaria Ltd. [1999] (112) ELT 353 = 1999 (8) TMI 920 – SUPREME COURT OF INDIA had clearly laid down the above principle in the following words: 17. It is clear from these Rules, as we read them, that a manufacturer obtains credit for the excise duty paid on raw material to be used by him in the production of an excisable product immediately it makes the requisite declaration and obtains an acknowledgement thereof. It is entitled to use the credit at any time thereafter when making payment of excise duty on the excisable product. There is no provision in the Rules which provides for a reversal of the credit by the excise authorities except where it has been illegally or irregularly taken, in which event it stands cancelled or, of utilised, has to be paid for. We are here really concerned with credit that has been

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Supreme Court held that: 5 …. The basic postulate, that the scheme is merely being altered and, therefore, does not have any retrospective or retro-active effect, submitted on behalf of the State, does not appeal to us. As pointed out by us that when on the strength of the rules available certain acts have been done by the parties concerned, incidents following thereto must take place in accordance with the scheme under which the duty had been paid on the manufactured products and if such a situation is sought to be altered, necessarily it follows that right, which had accrued to a party such as availability of a scheme, is affected and, in particular, it loses sight of the fact that provision for facility of credit is as good as tax paid till tax is adjusted on future goods on the basis of the several commitments which would have been made by the assessees concerned. Therefore, the scheme sought to be introduced cannot be made applicable to the goods which had already come into exi

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e in referred to as the applicant ) has filed above detailed application under Section 97 of the Central Goods and Service Tax Act, 2017 read with Rule 97 of the Central Goods and Service Tax Act, 2017 read with Rule 104 (1) of the CGST Rules, 2017 seeking advance ruling on the issues detailed at column number 14 of the Application field, in form of questions framed as under 1-3 as in note sheet. 1. The admissibility of input tax Credit pertaining to chapter V of the CGST Act, 2017 from Section 16 to 21 is a different subject matter than the Transitional Provisions under chapter XX Section 139 to 142. 2. The Authority of Advance Ruling can pronounce it advance ruling only to the subject matter and questions entrusted under Section 97(2)(a) to Section 97(2)(g) and not any other subject matter or questions. 3. Since question or subject matters under Transitional Provision of Chapter XX are not covered in the said list of questions under Section 97(2), the Authority of Advance Ruling has

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further mentioned that entries in respect of Krishi Kalyan Cess and Education Cess etc. are not found at any of the place in the existing Section of 140 of the CGST Act and Rules 2017. Therefore, the credit of taxes which are not covered in the definition of eligible duties in Section 140 cannot be availed. This fact has been explained by the party in their application itself. So, no further comments are warranted. The above submissions are made only as preliminary submissions about the admissibility of the application and detailed submissions would be filed as a later stage. From the discussion as made above taxes leviable in the pre GST regime are now not finding any entry under the existing GST Act, 2017 hence, Input Tax Credit is not applicable in any case. In any case, this application is out of jurisdiction. Hence, it is prayed that the application may be rejected at this stage only. 04. HEARING The case was taken up for preliminary hearing on 20.03.2018. Sh. S Ramaiya, Asstt. Ch

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in respect of their first question in their application, they stated that as it is not covered under transitional provisions of GST as available, they withdraw the same and may be considered and they would approach the jurisdictional authorities for the same. The request was considered and granted. 05. OBSERVATIONS We have gone through the facts of the case. There are two issues before us which are required to be decided. The primary issue raised by the applicant is regarding availment, under the GST laws, of input tax credit (ITC) for excise duty paid under Rule 3(5B) of the Cenvat Credit Rules, 2004 (CCR) and the second issue is whether they are eligible to avail ITC against unutilized cenvat credit such as Education Cess (EC), Secondary & Higher Education Cess (SHEC) and Krishi Kalyan Cess (KKC) lying in their books of accounts. We find that in respect of their first question raised in the application, they at the time of hearing on 04.04.2018 have stated and accepted that this

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ent of EC on excisable goods or taxable services. Under both, the service tax laws and the central excise laws, EC was not supposed to be used for making duty/ tax payments. Levy of EC was abolished by the Finance Act, 2015, w.e.f. 01.06.2015, in the case of taxable services and w.e.f. 01.03.2015 in the case of excisable goods. Later on Notification No. 12/2015-CE (NT) dated 30.04.2015 was issued and the said Notification allowed manufacturers to utilize the Cenvat credit on CESS towards payment of basic excise duty in certain situations. The amendment was made applicable only to CESS paid on inputs, capital goods and input services received in the factory of the manufacturer on or after 01-03-2015. The Budget provisions in 2015 made no express provision as regards to the lapse of balance of credit available with the manufacturers or the provision of its utilisation in future or its refund. Similarly, Secondary and Higher Education Cess (SHEC) was levied by the Finance Act, 2007 and th

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tition was filed inter alia seeking direction that the credit accumulated as on 01st June 2015 on account of EC and SHEC should be allowed to be utilized for payment of service tax. The petitioners claim a vested right to avail benefit of the unutilized amount of EC or SHE credit, which was available and had not been set off as on 1st March 2015 and 1st June 2015 for payment of tax on excisable goods and taxable services respectively. The contention was that EC and SHE were subsumed in the Central Excise Duty, the general rate of which was increased from 12% to 12.5%, and service tax, which was increased from 12.36% to 14%. Reliance was placed upon the Budget Speech of the Finance Minister and the memorandum explaining provisions of Finance Bill, 2015. Reference was also made to the TRU letter F.No.334/5/2015-TRU dated 28th February 2015. The court has held that Manufacturers and Service providers are entitled to wail and utilize EC and SHEC against the liability of EC and SHEC before

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concluded that the credit of EC and SHEC cannot be used for the payment of excise duty. The Hon. Court dismissed the Writ Petition. From the submissions made by the applicant it is seen that in addition to the EC and SHEC their query is also whether they are eligible to avail ITC against unutilized cenvat credit of Krishi Kalyan Cess (KKC) lying in their books of accounts. This authority has answered this question in the negative in the Advance Ruling order passed in the case of M/s. Kansai Nerolac Paints Limited (KNPL). In the case of KNPL, the query was similar i.e. whether accumulated credit by way of KKC would be considered as ITC under GST laws. The reasons on the basis of which the said ruling has been passed would also be applicable to the subject matter at hand. We find that express provisions have been made in the Cenvat Credit Rules from time to time that credit availed in respect of EC, SHEC and KKC can be used for making tax/duty payments only against ECT SHEC and KKC, resp

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(1) of section 140 would not include the credit in respect of KKC. Therefore, the credit of taxes which are not covered in the definition of eligible duties in Section 140 cannot be availed. We also refer to Rule 117 of the CGST Rules which provide the mechanism for carry forward of Tax or duty credit under any existing law or on goods held in stock on the appointed day. Sub-rule 1 of Rule 117, reads as under: Every registered person entitled to take credit of input tax under section 140 shall, within ninety days of the appointed day, submit a declaration electronically in FORM GST TRAN-1, duly signed, on the common portal specifying therein, separately, the amount of eligible duties and taxes as defined in explanation to section 140 to which he is entitled under the provisions of the said section: The said rule provides for carry forward of only eligible duties and taxes as defined in the explanation to section 140. Eligible duty has been defined in the explanation to section 140 with

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ransitional Credit, under GUIDANCE NOTE ON CGST TRANSITIONAL CREDIT, para 4.2: Check 2: Credit of taxes not covered in the definition of eligible duties in section 140 cannot be availed. Example: Krishi Kalyan Cess, Education Cess, etc. Instances have also come to notice where credit of VAT and PLA balance has been availed as transitional credit. This is not allowed in law . Further in an FAQ issued by the government on the said issue, in response to the question: Whether closing balance of education cess and secondary higher education cess prior to 1st Mar 2015 can be carried forward in GST? has been answered as follows:- No it will not be carried forward in GST as it is not covered by definition of eligible duties and taxes under Section 140 of the CGST Act 06. In view of the deliberations as held hereinabove, we pass the order as under: ORDER (under section 98 of the Central Goods and Services Tax Act, 2017 and the Maharashtra Goods and Services Tax Act, 2017) NO. GST-ARA-25/2017-18

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2018 (9) TMI 1105 – AUTHORITY FOR ADVANCE RULING, MAHARASHTRA – 2018 (17) G. S. T. L. 659 (A. A. R. – GST) – Classification of goods – marine paints – Whether marine paints supplied by the applicant, would be considered to be part of ship and accordingly be then classified under SI no 252 of Schedule I of Notification No 1/2017 of Central Tax (Rates) dated June 28, 2017?
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Held that:- here is no dispute with regard to classification of the subject goods under CTH 3208 and 3209. The difference of opinion is only with respect to the claim of the applicant that the goods are parts of ship and therefore would be eligible for concessional rate of IGST @ 5% as given under Sr. No. 252 of Schedule -I of Notification No. 1/2017 of Integrated Tax (Rates).
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The benefit of concessional rate of IGST @5% is available to parts of goods of headings 8901, 8902, 8904,8905,8906 and 8907 – it is very apparent that parts of goods of Heading 8901, 8902, 8904, 8905, 8906 and 8907 are eligible for

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tial parts or equipments of a vessel/ship.
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The items that are discussed as essential parts of a ship/ vessel are such essential components of a vessel/ ship without which the ship would not be complete and would not exist. These are very integral for the functioning of the ship and can be separated from the ship for repair/replacement. There are various consumable items like paints varnish, oils, grease, etc. which are essentially applied and used in or on all or most of these essential ship parts as discussed above to make them tenable, durable and worthy of the ocean. Once applied, these consumable items are consumed and lost and cannot be reused and are also not worth recovery, reuse or recycle for use on ship.
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Considering the meaning of an expression (Part) as defined in the dictionary, besides common parlance test it can be safely concluded that Marine Paint is not a component part of Ship. This conclusion which we have drawn as above gets support from the facts stated

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dvance ruling in respect of the following issues. 1. Whether marine paints supplied by the applicant, would be considered to be part of ship and accordingly be then classified under SI no 252 of Schedule I of Notification No 1/2017 of Central Tax (Rates) dated June 28, 2017? At the outset, we would like to make it clear that the provisions of both the CGST Act and the MGST Act are the same except for certain provisions. Therefore, unless a mention is specifically made to such dissimilar provisions, a reference to the CGST Act would also mean a reference to the same provision under the MGST Act. Further to the earlier, henceforth for the purposes of this Advance Ruling, a reference to such a similar provision under the CGST Act / MGST Act would be mentioned as being under the GST Act . 02. FATC AND CONTENTION – AS PER THE APPLICANT The submission (Brief facts of the case), as reproduced verbatim, could be seen thus – Jotun Group is a leading supplier of paints and powder coatings. The A

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d Service Tax Legislation (SGST) Integrated Goods and Service Tax Act, 2017 (IGST) With the introduction of GST, Applicant has analysed classification and applicability of CGST, SGST and IGST in light of new legislation. For classification, it has been clarified in the rate notification of respective legislation that rule for interpretation Of the First Schedule to the Customs Tariff Act, 1975 including Section notes and Chapter notes and general explanatory notes of the said First Schedule would be applicable for the purpose of classification under GST. Accordingly, Applicant has sought to classify paints being supplied under HSN 3208 and 3209 on the basis of nature of the product and after considering relevant chapter notes and section notes. Notification No 1/2017 – Integrated Tax (Rate) dated June 28, 2017 prescribes applicable rate of IGST (hereinafter referred to as IGST Rate Notification). Paint supplied by Applicant are classifiable under Chapter Heading 3208 and 3209 are cover

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bmits that marine paint is a specific type of paints suitable for use principally for ships during building stage and even during maintenance. The sailing ship needs protection from corrosive environment in which they operate. Such marine corrosion has a significant impact on sea carriers and their longevity. Therefore, effective corrosion control strategies are chosen considering appropriate selection of coating for a marine environment. Marine coatings have special functionality to protect marine vessels and other carriers above and below the waterline. Accordingly, marine paints supplied by Applicant has following technical features: Protects the body Of Ship from highly corrosive environment Blocks barnacles and other marine organisms from adhering to the hulls of ships Lessens fuel consumption as it controls damage to the ship. Prevents impact on water eco-systems by reducing emission of Green House Gases. Transportation of marine organisms to other areas Vide notification no 1/20

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o this Chapter Thus based on the technical specification of the product, marine paints appear to be classifiable under heading 3208. Since, marine paint is suitable for use for Ships, it could also get classified as part of Ship. For the purpose of this analysis, Applicant referred to chapter 89 for 'Ships, boats and floating structure'. However, Applicant wishes to draw your attention to the fact that there is no specific entry in Chapter 89 for 'parts' of ships covered therein. In the absence of any entry for part of ship, Applicant had adopted classification of marine paint under chapter heading 3208. Applicant has also been adopting similar classification under Central Excise Law. The excise duty liability has accordingly been discharged by Applicant in erstwhile Indirect Tax regime, Sample copy of invoice which was issued under erstwhile regime, has been enclosed as annexure 5 for your ready reference. CLASSIFICATION UNDER GST A3. Basis the IGST Rate notification,

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ted June 28, 2017 liable to 5% IGST: Sr.No. Chapter/Heading/ Sub-heading/ Tariff item Description of Goods 252. Any Chapter Parts of goods of heading 8901, 8902, 8904, 8905, 8906 and 8907' Description of goods falling under above referred heading, are mentioned below: Sr.No. Chapter/Heading/ Sub-heading/ Tariff item Description of Goods 246 8901 Cruise ships, excursion boats, ferry-boats, cargo ships, barges and similar vessels for the transport of persons or goods 247 8902 Fishing vessels; factory ships and other vessels for processing or preserving fishery products 248 8904 Tugs and pusher craft 249 8905 Light-vessels, fire-floats, dredgers, floating cranes and other vessels the navigability of which is subsidiary to their main function; floating docks; floating or submersible drilling or production platforms 250 8906 Other vessels, including warships and lifeboats other than rowing boats 251 8907 Other floating structures (for example, rafts, tanks, coffer-dams, landing-stages,

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ication No. 6/2002 exempts parts, falling under any Chapter used within factory of production for manufacture of goods of Heading 8701, the benefit cannot be denied to the product which not fall under said chapter. The goods falling under any Chapter, as long as they are parts of goods of Heading 87.01 will be covered by the said Notification. A7. Thus bearing in mind, entry 252 of Schedule I of GST classification notification (1/2017 – Integrated Tax dated June 28, 2017) and aforesaid case law, one may interpret that goods falling under any chapter, as far as they constitute to be part of vessel/ship, would be subjected to tax at 5%. A8. Accordingly, for marine paints to be classified under this entry, it should be construed as 'part of the ship' covered under entry 252. B. Marine paint is mandatorily to be applied on all ships under Merchant Shipping Act, 1958 and hence the same should be considered as part of Ship B1. As highlighted above, there is no separate tariff item as

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the above, it could be understood that anything which is an integral element and is also essential to an object, could be considered as part of that article. Anything required to make the goods a finished item can be described as component parts. Applicant hereby submits relevant provisions of Merchant Shipping Act, 1958 ('MS Act' for brevity) which would help in demonstrating that marine paint is integral and essential component of ship. Section 356P(1) of MS Act: Application of chapter XIB-Control Of Harmful Anti-Fouling Systems On Ships Save as otherwise provided in this Part, this Part shall apply to- a. every Indian ship, wherever it is; b. ships not entitled to fly the flag of India, but which operate under the authority of India; and c. Slaps that enter a port, shipyard, or offshore terminal or place in India or within the territorial waters of India or any marine areas adjacent thereto over which India has, or may hereafter have, exclusive jurisdiction in regard to con

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on 356X of MS Act – Information regarding contravention of the provisions of Convention 1. If, on receipt of a report from a surveyor or other person authorised to inspect a ship, the Director-General is satisfied that any provision of this Part has been contravened by such ship within the coastal waters, the Director-General or any officer authorised by him in this behalf, may- a. detain the ship until the causes of such contravention are removed to the satisfaction of the Director-General or the officer authorised by him; and b. levy penalty on such ship as specified in section 436 B4. From conjoint reading of the above provisions, it is evident that every ship has to adhere to the anti-fouling provisions as prescribed under MS Act. Basis the Same, a layer of coating or paint, has to be applied on the hull of the ship to control or prevent attachment of unwanted organisms. Further in the Concise Oxford English Dictionary, the term hull is defined as follows- The main body of a ship o

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'parts', it is relevant to refer to legal jurisprudence available in this regard wherein meaning of 'parts' has been deliberated. C2. The Hon'ble Supreme Court, in case of Star Paper Mills Ltd. Vs. Collector of Central Excise, Meerut [1990] 76 STC 312 (SC), = 1989 (8) TMI 78 – SUPREME COURT OF INDIA has ruled that if it is found that the use of paper core is necessary in any/process incidental or ancillary to the completion of paper as marketable goods it would consequently be commercially inexpedient to sell paper without the use of paper core, it would certainly be a constituent part of paper and would thus fall within the purview of the term component parts used in the notification. C3. The Hon'ble Gujarat High Court, in case of Surgichem Vs. State of Gujarat [1992] 87 STC 40 (Guj) = 1991 (7) TMI 303 – GUJARAT HIGH COURT observed that it is clear that anything that goes into the product till the product becomes marketable, such thing becomes part and parcel o

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end product. C5. From the above, it could be summarized that paper core, plastic spools and wrapping paper would be considered to be parts of paper rolls, adhesive plaster tapes and paper reams/reels respectively since without the former goods, the later goods couldn't be marketed or are commercially inexpedient. Thus an analogy could be drawn that anything which is required for making goods marketed or to be marketable, would be form component part of that end products. C6. Basis the provisions of The Merchant Shipping Act, ships are bound to adhere to the 'anti-fouling system' norms. Accordingly, ship would not be marketable unless the same has complied with anti-fouling system i.e. application of paints/coating to avoid growth of unwanted organisms. C7. Thus applying the ratio derived from aforementioned legal jurisprudence in the current situation, a view can be taken that since the ship is not commercially expedient without following anti-fouling system, paints would

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AHMEDABAD stated that following: he has also submitted a list of goods in respect of which exemption has been allowed to manufacturers supplying the goods to National Aerospace Laboratories, HAL etc. as detailed below : 9.1 Aircraft cables (manufacturer – Radiant Cables Pvt. Ltd.) 9.2 Paints (manufacturer – South Field Paints & Chemicals Pvt. Ltd.) 9.3 Expoxi Yellow Primer (manufacturer – South Field Paints & Chemicals Pvt. Ltd.) 9.4 Thinner for yellow primer (manufacturer – South Field Paints & Chemicals Pvt. Ltd.) 9.5 Rivets (manufacturer – M/s. Ankit Forgings) 9.6 Epoxi black paint (manufacturer – South Field Paints & Chemicals Pvt. Ltd.) 9.7 Industrial Laminates Fabric (manufacturer – Lamtuf Plastics Ltd.) D2. From the facts of above case, it could be understood that paints when supplied to manufacturers of aircrafts /helicopter, are treated as parts of aircraft and thus would be eligible for claiming benefit of nil rated duty under notification 6/2002-Central Excis

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er Raw materials and parts NIL 2 and 3* *Condition 2 – Where such use is elsewhere than in the factory of production, the exemption shall be allowed if the procedure laid down in the Central Excise (Removal of Goods at Concessional Rate of Duty for Manufacture of Excisable Goods) Rules, 2001, is followed. Condition 3- The exemption shall be allowed if it has been proved to the satisfaction of an officer not below the rank of the Deputy Commissioner of Central Excise or the Assistant Commissioner of Central Excise, as the case may be, having jurisdiction that such goods are cleared for the intended use. E3. Vide above mentioned entry, rate of excise duty for raw material and parts, for use in the manufacture of different types of vessels has been prescribed as nil. Accordingly, goods falling under any chapter meant for use in the manufacture of vessel was made liable to nil rate of duty. E4. Thus, it can be inferred that intention of the legislators is to grant benefits to all the produ

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f United Kingdom also considers paint as part of ship F1. Value Added Tax (VAT) was introduced in the UK on April 1, 1973. Although Value Added Tax Act 1994 (VATA) provides the lain framework of the tax, the detailed interpretation of the same are found in statutory instruments either in the form of Orders made by Treasury or Regulations made by Her Majesty's Revenue and Customs (HMRC). HMRC has published several Notices and Leaflets affecting law. Though these Notices are not part of the law but they explain how HMRC interprets the law. F2. Applicant would also like to draw your attention to the VAT provisions laid in United Kingdom as regards parts or components of ship. Following is the extract of such germane provisions: a. Section 30(2) of Value Added Tax Act 1994 A supply of goods or services is zero-rated by virtue of this subsection if the goods or services are a description for the time being specified in Schedule 8 or the supply is of a description for the time being so s

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ertainment equipment crockery and cutlery raw materials such as: fibre board, plastics, and specialist metals bulk materials such as: adhesives, chemicals, fabrics, inhibitors, metals, oils, paints, solvents and thinners etc aircraft ground equipment flight simulators or their parts, and tooling and equipment used for manufacturing parts or equipment F3. Now as per section 30(2) of VATA, any supply of goods or services would be zero-rated if the supply of goods are covered under Schedule 8 of the Act or supply of goods to the person to whom he supplies services is covered under the description provided. Further Schedule 8 of the Act includes supply of parts and equipment, of a kind ordinarily installed or incorporated in, and to be installed, or incorporated in the propulsion, navigation, communication systems or the general structure of a qualifying ship. F4. Thus as per section 30(2) read along with Schedule 8 of VATA, supply of parts and equipment of installed or incorporated in the

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Since entry at Sr no 252 has been newly introduced under GST Tax Schedules, inference could be drawn from Customs Tariff Act. Hence the meaning of the term 'parts of goods of heading 8901, 8902, 8904, 8905, 8906 and 8907' has to be adopted in general parlance. 3. Thus we have referred to definitions of 'Part' in various Dictionaries. Accordingly, part of an article is an integral part necessary to the constitution of the whole article and without it, the article will not be complete. 4. Further as per MS Act, anti-fouling system has to be mandatorily followed by every Ship since non-adherence of the same would be liable to severe penal actions. Therefore paints form an essential part of the ship without which ship couldn't be marketed. 5. Furthermore applying the analogy drawn from the germane legal jurisprudence it is said that anything which is required for making goods marketed or to be marketable, would be form component part of that end products and hence pain

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ions The dealer has requested in Annexure 1 that a ruling be pronounced under section 97(2) a of the CGST Act 2017 on the following questions:- a) Whether marine paints supplied by the applicant, would be considered to be part of ship and accordingly be then classified under Sl. no.252 of Schedule I of Notification No. 1/2017 of Central Tax (Rates) dated June 28, 2017? The dealer is dealing in marine paint. In GST there is separate entry of paints but the dealer is requesting to classify these paints as part of ship. Men there is a specific entry for any commodity the said commodity cannot be classified in another way. Therefore the dealer's request cannot be accepted. 04. HEARING The case was taken up for preliminary hearing on dt. 20.032018, with respect to admission or rejection of the application when Sh. Nitin S Shah, Advocate, duly authorized, appeared and made oral submissions for admission of application as per details in their written submissions. During hearing, the juris

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d coatings that are designed for unique conditions. In the subject case they have made submissions with respect to paints supplied to the shipping industry. They have stated that the paints supplied by them in the subject case are classifiable under Chapter Heading 3208 and 3209 which are covered under Schedule IV of Notification No. 1/2017-lntegrated Tax (Rate) dated 28.06.2017 and are accordingly liable to 28% IGST. However further to their claim that their goods 'Marine paints' are classifiable under CTH 3208 and 3209 and individually as per tariff are liable to IGST @ 28%, but the applicant is claiming that in the present facts of the case wherein they are supplying their goods marine paints for use on ships and therefore their goods would get covered under Sr. No.252 of Schedule -I of Notification 1/2017 of Integrated Tax (Rates) dated 28.06.2017 and would be liable to IGST @ 5% as they are parts of goods of Headings 8901, 8902, 8904, 8905, 8906 and 8907. Further we find t

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olymers or chemically modified natural polymers, dispersed or dissolved in a non-aqueous medium; solutions as defined in Note 4 to this Chapter. CTH 3209:- Paints and varnishes (including enamels and lacquers) based on synthetic polymers or chemically modified natural polymers, dispersed or dissolved in an aqueous medium. We find that in normal parlance, 'paint' means any liquid or composition that, after application to a substrate in a thin layer, converts to a solid film. It is most commonly used to protect, color, or provide texture to objects. There are various types of paints like enamel paint, emulsion pain, lacquer paint, varnish paint (without pigment), etc. One of the type of paint is 'Anti-fouling' paints. Anti-fouling paints are generally paints that are applied to hulls of ships. They prevent barnacles and other marine organisms from adhering to the hulls of ships. Thus it is the contention of the applicant that such types of paints sold by them should be tr

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port of persons or goods 247 8902 Fishing vessels; factory ships and other vessels for processing or preserving fishery products 248 8904 Tugs and pusher craft 249 8905 Light-vessels, fire-floats, dredgers, floating cranes and other vessels the navigability of which is subsidiary to their main function; floating docks; floating or submersible drilling or production platforms 250 8906 Other vessels, including warships and lifeboats other than rowing boats 251 8907 Other floating structures (for example, rafts, tanks, coffer- dams, landing-stages, buoys and beacons) Now when we know as to what are the goods covered under above CTH, we are required to examine and see if marine paints are parts of goods of the above referred CTHs. First of all we need to examine as to what are Parts . We find that the word Part/Parts has not been defined in GST nor was it defined in Central Excise earlier. In view of this first we are required to understand the general meaning of the word 'Part/ Parts&

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ne as to what are the parts of Goods of CTH 8901, 8902, and 8907 and whether marine paints can be taken to be covered within the meaning of Parts for Sr. No. 252 of Notification no. 1/2017-integrated Tax, We find that Anchor, Bow, Bowsprit, Fore and Aft, Hull, Keel, Mast, Rigging, Rudder, Sails, Shrouds, Engines, gearbox, Propeller, Bridge, etc. are the very essential parts of a ship or vessel and are quite clearly parts of a vessel/ ship and a ship cannot be imagined to be in existence without these parts. However, in addition to the above there are some additional equipments that are required to be made available on a ship as a measure of statutory compliances under various marine acts such as Merchant Shipping Act or Additional Safety measures such as Walkie-talkie, Binoculars, Life Jackets, Lifeboats, etc. Though these are also to be compulsorily made available on a vessel and ship but cannot be taken to be parts of a ship as per general understanding but are rather additional equi

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ems are consumed and lost and cannot be reused and are also not worth recovery, reuse or recycle for use on ship. The main function of marine paints as per applicant's submissions is … Protection the body of ship from highly corrosive environment Blocking barnacles and other marine organisms from adhering to the hulls of ships Lessening fuel consumption as it controls damage to the ship. Preventing impact on water eco-systems by reducing emission of Green House Gases. Preventing Transportation of marine organisms to other areas. When we refer to the definition of the word 'part' as discussed in detail above, we find that 'part' is a separate piece of something or a piece that combines with other pieces to form the whole of something. In this regard we find that marine paints are in no way piece of ship that would in any way form the whole ship. They are just consumables for the essential parts of ship. Similarly the second definition of part also defines &#39

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cation inserted following entry for prescribing effective rate of excise for goods mentioned therein. Sr. No. Chapter or heading or sub-heading or tariff item of the First Schedule Description of excisable goods Rate Condition No. 306C Any chapter Raw materials and parts NIL 2 and 3* *Condition 2 – Where such use is elsewhere than in the factory of production, the exemption shall be allowed if the procedure laid down in the Central Excise (Removal of Goods at Concessional Rate of Duty for Manufacture of Excisable Goods) Rules, 2001, is followed. Condition 3 – The exemption Shall be allowed if it has been proved to the satisfaction of an officer not below the rank of the Deputy Commissioner of Central Excise or the Assistant Commissioner of Central Excise, as the case may be, having jurisdiction that such goods are cleared for the intended use. In fact the said notification gave exemption to all raw materials and parts for use in the manufacture of certain specified ships/vessels, subje

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ithout which, final product cannot be conceived of. 13. The meaning of the expression component' in common parlance is that component part of an article is an integral part necessary to the constitution of the whole article and without it, the article will not be complete'. 14. This Court, in Star Paper Mills (supra) has made a settled distinction while considering whether paper cores are components' in the manufacture of paper rolls and manufacture of paper sheets. It is stated that paper cores' are component parts in so far as manufacture of roll is concerned, but it is not component part' in the manufacture of sheets. It is useful to quote the observations made by this Court :- "… paper core would also be constituent part of paper and would thus fall within the term "component parts" used in the Notification in so far as manufacture of paper in rolls is concerned. Paper core, however, cannot be said to be used in the manufacture of paper in sheet

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98 Tri Delhi, 1997 (94) ELT 234 Tri Del. = 1997 (5) TMI 152 – CEGAT, NEW DELHI the Two Member Bench of the Tribunal referred the appeal before the larger bench on the following questions: (i) Whether the phrase component parts occurring in Notification 77/90 would cover spare parts for the purpose of granting of benefit thereunder? The larger Bench of the Tribunal having regards to dictionary meaning of part , and Component observed that in common parlance meaning of the expression component is also the same, that is, one of the parts or elements of which anything is made up or into which it may be resolved or a Constituent. The meaning in common parlance has to be looked into since the notification itself does not contain any definition of the expression. In the State of Uttar Pradesh vs M/S. Kores (India) Ltd on 18 October, 1976, Equivalent citations: 1977 AIR 132, 1977 SCR (1) 837. = 1976 (10) TMI 131 – SUPREME COURT OF INDIA In this case the appellant contended before the Hon SC t

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clear of opinion that Carbon paper is not paper as envisaged by entry 2 of the aforesaid Notification. Regarding ribbon also to which the above mentioned rule construction equally applies, we have no manner of doubt that it an accessory and not a part of the typewriter (unlike spool) though it may not be possible to use the latter without the former. Just as aviation petrol is not a part of the aero- plane nor diesel is a part of a bus in the same way, ribbon is not a part of the typewriter though it may not be possible to type out any matter without it. The very same question with which we are here confronted came up for decision before the High Court of Mysore in State of Mysore v. Kores (India) Ltd. 26 STC 87). = 1970 (3) TMI 126 – MYSORE HIGH COURT (1) where it was held: Whether a typewriter ribbon is a part of a typewriter is to be considered in the light of what is meant by a typewriter in the commercial sense. Typewriters are being sold in the market without the typewriter ribb

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parts and equipment of a ship. However we find that the statutory provisions, conditions for benefit as given and referred by the applicant in UK VAT Act are in different context and therefore not relevant in the facts of the case in present matter. As per above detailed discussions we do not find any merit in the argument advanced by the applicant that Marine Paint should be considered as a part of Ship and accordingly find that marine paints are not covered under Serial No.252 of Schedule I of Notification No. 1/2017 of Central Tax(Rates) Dated June 28,2017. 06. In view of the extensive deliberations as held hereinabove, we pass an order as follows : ORDER (under section 98 of the Central Goods and Services Tax Act, 2017 and the Maharashtra Goods and Services Tax Act, 2017) NO.GST-ARA-29/2017-18/B-35 Mumbai, dt. 19/05/2018 For reasons as discussed in the body of the order, the questions are answered thus – Q1. Whether marine paints supplied by the applicant, would be considered to be

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Goods and Services Tax – GST – Dated:- 18-5-2018 – In the interest of taxpayers, it has been decided to extend the last date for filing of return in FORM GSTR-3B for the month of April, 2018 for two days, i.e., till 22nd May, 2018. The notification in this regard shall be published shortly. Earlier it was brought to the notice of the competent authority that certain technical issues are being faced by the taxpayers during the filing of FORM GSTR-3B for the month of April, 2018. In order to reso

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News – Extension of date for filing return in FORM GSTR-3B for the month of April, 2018 – TMI Updates – Highlights

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Goods and Services Tax – Started By: – ROHIT GOEL – Dated:- 18-5-2018 Last Replied Date:- 21-5-2018 – One of our client has been appointed as a food contractor by a club. Supply by our client to a club will be based on actual orders placed by customers of club. Payments from customers will be charged by a club and GST @ 5% has been charged in invoice considering it as a restaurant services.Our client will raise invoice to club at the end of month for the supplies made by him.Issue that arises is whether services provided by our client are catering service @18% or restaurant services @5%. – Reply By KASTURI SETHI – The Reply = It is outdoor catering service HSN 996334. – Reply By YAGAY and SUN – The Reply = In addition to above reply please

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s, campsites or other commercial places meant for residential or lodging purposes having declared tariff of any unit of accommodation of seven thousand five hundred rupees and above per unit per day or equivalent. are chargeable @ 9% towards CGST. – Reply By YAGAY and SUN – The Reply = Outdoor Catering Service Taxable at 18% GST: AAR.The Gujarat Authority for Advance Ruling, recently held that the supply of service provided by the applicant is in nature of outdoor catering and is liable to GST at the rate of 18%. The Applicant, M/s. Rashmi Hospitality Services Private Limited, is an industrial canteen contractor who provides cantering services to manufacturing industries at various places of their customers who have in house canteens at the

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Goods and Services Tax – Started By: – Kishan Barai – Dated:- 18-5-2018 Last Replied Date:- 19-5-2018 – After setting off the tax, system showing error GSTN-EXEC1003 & saved data get zero. – Reply By Arjun Gopalakrishna – The Reply = This is the technical error at the GSTN Facilitation center. Consider all sales and input credit particulars in the subsequent month in case you query has not resolved by GSTN. and rectify in the GSTR 1 filed for particular tax period. Do the following to safe

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Goods and Services Tax – Started By: – Praveen Nair – Dated:- 18-5-2018 Last Replied Date:- 19-5-2018 – Hello Experts,When GST was implemented in July 2017, there were substantial changes made in forms, format & reporting structures. One of the format change was in Shipping Bill. ARE particulars were removed and then Invoice mis-match percolated etc…Shipping Bill had this issue most of the CHA's had errorneously mentioned LUT instead of IGST in the S/Bill resulting in blockage of refund. Interesting to note that there are no facility in the EDI software to change from LUT to IGST, though you have submitted at Tax Invoice paying IGST.You either have an option to revise the entire Tax Invoice from IGST to LUT in GST portal and clai

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Goods and Services Tax – Started By: – Arjun Gopalakrishna – Dated:- 18-5-2018 Last Replied Date:- 22-6-2018 – INPUT CREDIT OF GST COLLECTED BY GOVERNMENT BODY ON FINES AND PENALTIES LEVIES FOR DELAY IN SUBMISSION OF FORMS.IS THERE ANY RESTRICTION FOR CLAIMING GST INPUT IN THIS CASE – Reply By KASTURI SETHI – The Reply = In my view ITC on penalty paid due to late submission of forms is not allowed. In my view such penalty is legal requirement and does not qualify to the criteria of in the business or furtherance of business. – Reply By Arjun Gopalakrishna – The Reply = Sir we appreciate you view on this query. SEBI has levied penalty for delay in submission of quarterly forms. There is no restriction of INPUT credit under section 16, 17 an

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ent of any consideration for supply, is mentioned. Only payment of penalty cannot constitute supply. Merely, non-mentioning in Section 16, 17 and 18 of Act, does not gives you liberty of all Taxes as credit, other factors are required to be considered before arriving at any conclusion. Our experts may correct me if mistaken. Thanks – Reply By DR.MARIAPPAN GOVINDARAJAN – The Reply = I endorse the views of Shri Arjun. – Reply By KASTURI SETHI – The Reply = If penalty is imposed upon an assessee for an offence (committed by assessee )by way of Adjudication Order, no ITC on that amount of penalty is admissible. In other words, such penalty is not to be treated in business or furtherance of business. The same analogy can be applied here. – Reply

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Goods and Services Tax – Started By: – Jayadevan K M Nair – Dated:- 18-5-2018 Last Replied Date:- 22-5-2018 – Our client is a timber merchant dealing in timber logs and they raise invoice to the customers mentioning the product HSN code of timber logs which is 4403. But the client B before transporting the timber, does sawing of timber B logs into chipped/sliced timber in near by saw mill.B For sawing services the Sawmill issues sawing bill with service HSN code 9988. After sawing of Timber log, the product is changed to chipped/sliced Timber and its HSN Code is 4407. HenceB the final item transported would be split timber which comes under HSN 4407. The sawing centre raises only a service bill towards sawing charges hence they would not i

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eference of their sale bill. Is the process is correct? If B a customer cut timber log from his on land or purchased from an unregistered dealerB and bring for sawing , then which are the documents to be attached while transporting the chipped/sliced timber. Shall E-way bill is to be taken. How fill the part A particulars in E-way bill. As he is having only GSTINB of the service provider. Please clarify as we are not able to give proper guidance to our client. with regards Jayadevan Muralidhar & Associates – Reply By YAGAY and SUN – The Reply = Consignment value and HSN needs to be determined for goods only not for services as only the goods are in movement and e-way bill needs to be generated accordingly. – Discussion-Forum – Knowledge

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Goods and Services Tax – Started By: – narendra patel – Dated:- 18-5-2018 Last Replied Date:- 11-12-2018 – Suppose a capital good (purely for business purpose) is purchased for 80,000. on 1.4.2018. So CGST part will be 7200. We avail 1/5 part (1440) for current year and put reversal entry of 5760. Now, in next year we claim next 1/5 part (1440). My question: 1. Do we claim next year ITC on 1.4.2019 or 31.3.2020 (ie exactly 1 year after purchase or at the end of next FY) 2. Under which section of GST, do we claim ITC of next year. 3. Under which section of GST, do we enter reversal enter of current year.Please advise. – Reply By KASTURI SETHI – The Reply = Restriction of one year is for availment and not for utilization. Can be used at any

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I SETHI – The Reply = Dear Querist, You can take full ITC on capital goods in one year. Reversal (you are talking) is required on account of usage of tax paid inputs/capital goods in the business or furtherance of business in respect of exempted as well as taxable supply of goods or services. Are you engaged in exempted as well as taxable supply ? – Reply By KASTURI SETHI – The Reply = Dr.Govindarajan Ji, Sir, What I want to say is as under :- During pre-GST era, Cenvat Credit on capital goods was allowed as 50% in first financial year and balance (50% ) in next financial year. In GST regime, ITC on capital goods can be taken in full in one year. (year of purchase). Earlier condition of taking credit in two installments has been dispensed w

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).Thank you very much.If my conclusion from above discussion is wrong, please advise. – Reply By Shashank Mutha – The Reply = Respected kasturi Sethi & Govindrajan ji I think that if we charge depreciation on capital goods at the end of financial year than we can't avail ITC . I refer Sec 17 (5) of CGST Act about BLOCK CREDIT If I am wrong than kindly guide us Thank you (waiting for reply) – Reply By Shashank Mutha – The Reply = #DR.MARIAPPAN GOVINDARAJAN – Reply By Shashank Mutha – The Reply = #KASTURI SETHI – Reply By Ganeshan Kalyani – The Reply = In case of capital goods used for taxable goods then full credit can be taken in one year. And in case of capital goods used partially for business and partially for other purpose or pa

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Goods and Services Tax – 23/2018 – Dated:- 18-5-2018 – Government of India Ministry of Finance Department of Revenue Central Board of Indirect Taxes and Customs Notification No. 23/2018 – Central Tax New Delhi, the 18th May, 2018 G.S.R. 462 (E).- In exercise of the powers conferred by section 168 of the Central Goods and Services Tax Act, 2017 (12 of 2017) read with sub-rule (5) of rule 61 of the Central Goods and Services Tax Rules, 2017, the Central Government, on the recommendations of the C

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Goods and Services Tax – 7/2018 – Dated:- 18-5-2018 – MINISTRY OF FINANCE (Department of Revenue) NOTIFICATION No. 7/2018-Union Territory Tax New Delhi, the 18th May, 2018 G.S.R. 463(E).-In exercise of the powers conferred under sub-section (1) of Section 22 of the Union Territory Goods and Services Tax Act, 2017 (No. 14 of 2017) and section 164 of Central Goods and Services Tax Act, 2017 (No. 12 of 2017) read with clause (d) of sub-rule 14 of rule 138 of the Central Goods and Services Tax Rule

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