Disc brake pads and shoes classified under GST subheading 8708 as motor vehicle parts; 28% GST rate applies.
Case-Laws
GST
GST – Disc Brake Pads and Shoes are required to be classified under
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GOODS AND SERVICES TAX PRACTITIONERS
By: – DR.MARIAPPAN GOVINDARAJAN
Goods and Services Tax – GST
Dated:- 8-6-2018
GST practitioners
Section 2 (55) of the Central Goods and Services Tax Act 2017 ('Act' for short) defines the expression 'goods and services tax practitioner' as any person who has been approved under section 48 to act as such practitioner.
Powers of Central Government
Section 48(1) gives powers to the Central Government to make rules on-
* the manner of approval of GST practitioners;
* their eligibility conditions;
* duties and obligations;
* manner of removal; and
* other conditions relevant for their functioning.
Functions of GST practitioners
Section 48(2) read with Rule 83 (8) provides the functions of the GST Practitioners on behalf of the registered persons, as detailed below-
* to furnish the details of outward supplies under section 37;
* to furnish the details of inward supplied under section 38;
* to furnish returns under sec
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or tax return preparer under the existing law for a period of not less than five years;
* he has passed-
* a graduate or post graduate degree or its equivalent examinations having a degree in commerce, law, banking including higher auditing or business administration or business management from any Indian University established by any law for the time being force in law; or
* a degree examination of any Foreign University recognized by any Indian University as equivalent to the degree examination as mentioned above; or
* any other examination notified by the Government on the recommendations of the Council, for this purpose; or
* has passed any of the following examinations-
* final examination of Institute of Chartered Accountants of India; or
* final examination of Institute of Cost Accountants of India; or
* final examination of Institute of Company Secretaries of India.
Enrolment
A person who intends to act as GST Practitioner, he has to apply in Form GST PCT – 01
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he Commissioner on the recommendations of the Council. Such person is to pass the said examination within a period one year from the appointed date.
Vide Notification No. 24/2018-Central Tax, dated 28.05.2018, the Central Government notified the National Academy of Customs, Indirect Taxes and Narcotics, Department of Revenue, Ministry of Finance, Government of India, as the authority to conduct the examination.
Disqualification
If any goods and services tax practitioner is found guilty of misconduct in connection with any proceedings under the Act, the authorized officer may, after giving him a notice to show cause in FORM GST PCT-03 for such misconduct and after giving him a reasonable opportunity of being heard, by order in FORM GST PCT -04 direct that he shall henceforth be disqualified under section 48 to function as a goods and services tax practitioner.
Any person, who is aggrieved against the above said order, may file an appeal to the Commissioner within 30 days from the d
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and services tax practitioner.
A goods and services tax practitioner attending on behalf of a registered or an unregistered person in any proceedings under the Act before any authority shall produce before such authority, if required, a copy of the authorization given by such person in FORM GST PCT-05.
Consent of registered person
Where any application relating to a claim for refund or an application for amendment or cancellation of registration has been submitted by the goods and services tax practitioner authorized by the registered person, a confirmation shall be sought from the registered person and the application submitted by the said practitioner shall be made available to the registered person on the common portal and such application shall not be proceeded with further until the registered person gives his consent to the same in Form GST PCT – 05.
Obligation of registered person
Before confirming submission of any statement prepared by the goods and services tax practi
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GST pe Charcha – Part 2
By: – Monarch Bhatt
Goods and Services Tax – GST
Dated:- 8-6-2018
In this series, I am trying to cover the issues which are generally faced by the assessee at large and such issues are chosen based on the queries raised in the various seminars delivered by me.
Query: The hotel situated in Mumbai is providing banquet services and while issuing an invoice to one of their guest who is registered in Delhi, hotel has charged IGST on the banquet services. However, auditor of the hotel is saying that hotel shall charge CGST and SGST.
Hotel wants to know:
* As per the provisions relating to the place of supply of goods or services, whether hotel shall charge IGST or CGST and SGST?
* Since hotel has already issued the invoice, how they can rectify the mistake wherein, instead of charging CGST and SGST hotel has charged IGST?
Reply: As per the provisions relating to the place of supply of goods or services, hotel is required to charge CGST and SGST
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)to (14),(a)…………………..(b)………………….
* The place of supply of services,
(a) directly in relation to an immovable property, including services provided by architects, interior decorators, surveyors, engineers and other related experts or estate agents, any service provided by way of grant of rights to use immovable property or for carrying out or co-ordination of construction work; or
(b) by way of lodging accommodation by a hotel, inn, guest house, home stay, club or campsite, by whatever name called, and including a house boat or any other vessel; or
(c) by way of accommodation in any immovable property for organising any marriage or reception or matters related thereto, official, social, cultural, religious or business function including services provided in relation to such function at such property; or
(d) any services ancillary to the services referred to in clauses (a), (b) and (c), shall be the location at which the immovable property or boat
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tral Goods & Services Tax (CGST) and Maharashtra State Goods & Services Tax (MH SGST).
The hotel has charged IGST while issuing an invoice to the receiver. Therefore, hotel shall issue credit note for the amount wrongly charged as IGST and Debit note shall also be issued for recovery of CGST and Maharashtra SGST.
Query: M/s. Solid Construction is situated at Mumbai having Goods & Services Tax (GST) registration at Mumbai, has started new construction project at Bangalore, for which M/s. Solid Construction has appointed M/s. Fair Consultancy as an Architect. M/s. Fair Consultancy is situated at Mumbai and having registration under the Goods & Services Tax (GST) for their Mumbai office and they do not have any other branches across the country.
In this scenario M/s. Fair Consultancy wants to know, whether architectural services provided by them is liable for the payment of Central Goods & Services Tax (CGST) & Maharashtra States Goods & Services Tax (SGST) or Integrated Goods & Servi
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Clarifications of certain issues under GST– regarding
47/21/2018 Dated:- 8-6-2018 CGST – Circulars
GST
Circular No. 47/21/2018-GST
F. No. CBEC- 20/16/03/2017-GST
Government of India
Ministry of Finance
Department of Revenue
Central Board of Indirect Taxes and Customs
GST Policy Wing
New Delhi, Dated the 08th June, 2018
To,
The Principal Chief Commissioners/ Chief Commissioners/Principal Commissioners/ Commissioners of Central Tax (All)/
The Principal Directors General/ Directors General (All)
Madam/Sir,
Subject: Clarifications of certain issues under GST- regarding
Representations have been received seeking clarification on certain issues under the GST laws. The same have been examined and the clarifications on the same are as below:
Sl. No.
Issue
Clarification
1
Whether moulds and dies owned by Original Equipment Manufacturers (OEM) that are sent free of cost (FOC) to a component manufacturer is leviable to tax and whether OEMs are required to reverse i
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2017 (CGST Act for short).
1.3 However, if the contract between OEM and component manufacturer was for supply of components made by using the moulds/dies belonging to the component manufacturer, but the same have been supplied by the OEM to the component manufacturer on FOC basis, the amortised cost of such moulds/dies shall be added to the value of the components. In such cases, the OEM will be required to reverse the credit availed on such moulds/ dies, as the same will not be considered to be provided by OEM to the component manufacturer in the course or furtherance of the former's business.
2
How is servicing of cars involving both supply of goods (spare parts) and services (labour), where the value of goods and services are shown separately, to be treated under GST?
2.1 The taxability of supply would have to be determined on a case to case basis looking at the facts and circumstances of each case.
2.2 Where a supply involves supply of both goods and services and the value of
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r may also comply with the said provisions.
(b) The principal and the auctioneer for the purpose of auction of tea, coffee, rubber etc., or the principal and the auctioneer for the purpose of supply of tea through a private treaty, are required to maintain the books of accounts relating to each and every place of business in that place itself in terms of the first proviso to sub-section (1) of section 35 of the CGST Act. However, in case difficulties are faced in maintaining the books of accounts, it is clarified that they may maintain the books of accounts relating to the additional place(s) of business at their principal place of business instead of such additional place(s).
(c) The principal and the auctioneer for the purpose of auction of tea, coffee, rubber etc., or the principal and the auctioneer for the purpose of supply of tea through a private treaty, shall intimate their jurisdictional officer in writing about the maintenance of books of accounts relating to the addition
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M/s. BERGER PAINTS INDIA LTD. Versus ASSISTANT STATE TAX OFFICER STATE GOODS & SERVICE TAX DEPARTMENT, KOLLAM, STATE TAX OFFICER STATE GOODS & SERVICE TAX DEPARTMENT, KOLLAM, ASSISTANT COMMISSIONER STATE GOOD & SERVICE TAX DEPARTMENT, STATE OF KERALA TAXES DEPARTMENT, STATE GOODS & SERVICE TAX DEPARTMENT SECRETARIAT AND GOVERNMENT OF INDIA DEPARTMENT OF REVENUE, NEW DELHI
GST
2018 (6) TMI 557 – KERALA HIGH COURT – TMI
KERALA HIGH COURT – HC
Dated:- 8-6-2018
W. P. (C). No. 18855 of 2018
GST
MR. P.B. SURESH KUMAR, J.
For The Petitioner : Sri. Tomson T. Emmanuel
For The Respondent : Sri. V. K. Shamsudheen And Sreelal N. Warrier
JUDGMENT
Petitioner seeks release of the goods detained by the first respondent under Sect
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Gati-Kintetsu Express Private Limited Versus Assistant Commissioner of State Tax, Kharagpur Range & Others
GST
2018 (6) TMI 558 – CALCUTTA HIGH COURT – 2018 (16) G. S. T. L. 18 (Cal.) , [2018] 2 GSTL 132 (Cal)
CALCUTTA HIGH COURT – HC
Dated:- 8-6-2018
W. P. 6633 (W) of 2018
GST
Debangsu Basak, J.
Mr. Rajarshi Chatterjee …for the petitioner
Mr. Abhrotosh Majumder, Ld. A.A.G. Mr. P. Dudhoria Mr. Debasish Ghosh …for the State
ORDER
An order of seizure passed under Section 129(1) of the Central Goods and Services Tax Act, 2017 is under challenge in the present writ petition. The order is appealable under Section 107 of the Act of 2017.
Learned advocate for the petitioner submits that, the order comes within the purview of Section 121 of the Act of 2017. He submits that, Section 121 of the Act of 2017 carves out an exception of non-appealable decisions and orders and that the impugned order comes within the purview of such Section. Therefore, the writ petition
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provision for filing an appeal.
In response, learned Additional Advocate General submits that, Rule 109 of the West Bengal Goods and Services Tax Rules, 2017 allows an appeal to be filed either electronically or otherwise. He submits that, the petitioner may file the appeal either electronically or otherwise.
The petitioner is aggrieved by an order of seizure of vehicle passed by the authorities exercising jurisdiction under Section 129(3) of the Central Goods and Services Tax Act, 2017. Such an order is appealable under Section 107 of the Act of 2017. Section 107 of the Act of 2017 is as follows :-
“107. Appeals to Appellate Authority.
(1) Any person aggrieved by any decision or order passed under this Act or the Central Goods and Services Tax Act by an adjudicating authority may appeal to such Appellate Authority as may be prescribed within three months from the date on which the said decision or order is communicated to such person.
………………………………….
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on of books of account register and other documents; or
(c) an order sanctioning prosecution under this Act; or
(d) an order passed under section 80.”
Section 121 is an exception to Section 107 of the Act of 2017. While Section 107 of the Act of 2017 makes every decision or order passed under the Act of 2017 to be appealable, Section 121 makes an exception thereto and states that, few which are recognized in Sub-section (a) to (d) would not be appealable.
In the facts of the present case, the petitioner relies upon Section 121(b) and submits that, an order of seizure is not appealable. With respect, Sub-section (b) relates to an order of seizure of books of account, register and other documents. Any other reading of the Sub-section would do violence to the Sub-section itself. If the contention of the petitioner is upheld, any order of seizure, irrespective of the fact as to whether the seizure relates to an immovable property or any other object, apart from books of account, r
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In order to clarify the Special drive “GST refunds fortnight” from 31st May to 14th June, 2018-reg.
No. 01/GST/2018-19 Dated:- 8-6-2018 Delhi SGST
GST – States
GOVTERNMENT OF NATIONAL CAPITAL TERRITORY OF DELHI
DEPARTMENT OF TRADEAND TAXES
(HUMAN RESOURCE BRANCH)
VYAPAR BHAWAN, I.P. ESTATE, NEW DELHI-110002.
ORDER
No. F.3(174)/Policy-GST/2018/262-74
Dated: 08-06-2018
Trade Notice No. 01/GST/2018-19
Subject: Special drive "GST refunds fortnight" from 31st May to 14th June, 2018-reg.
All the exporters/dealers & Trade Associations are informed that DEPARTMENT OF TRADE & TAXES Govt. of NCT of Delhi is observing a special drive-GST refunds fortnight from 31st May to 14th June, 2018 to intensify the efforts to liquidat
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need to file claims separately with Central and State for refund of CGST and SGST respectively.
• It is not enough to file FORM GST RFD-01A on the common portal. Your refund Claim will not be processed until you submit a printout of the form to the jurisdictional tax office.
3. All the officers concerned in the DEPARTMENT OF TRADE & TAXES will deal with cases of GST related refund claims and process them on utmost priority basis. The taxpayers are advised to contact respective ward officers in connection with the refund claims or for any help in this regard.
4. In case any difficulty is faced with regard to the sanction of the refund claims, Shri Anand Kumar Tiwari. Additional Commissioner, 5th Floor, Vyapar Bhawan, IP Estate, New
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Constitute the Odisha State Appellate Authority for Advance Ruling for Goods and Services Tax.
18768-FIN-CT1-TAX-0072/2017-S.R.O. No. 201/2018 Dated:- 8-6-2018 Orissa SGST
GST – States
Orissa SGST
Orissa SGST
FINANCE DEPARTMENT
NOTIFICATION
The 8th June, 2018
S.R.O.No.201/2018- In pursuance of Section 99 of the Odisha Goods and Services Tax Act, 2017 (Odisha Act 7 of 2017), the State Government do hereby constitute the Odisha State Appellate Authority for Advance Ruling for Goo
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M/s. Hydromet (India) Limited, Kancheepuram Versus Commissioner of GST & CE, (Chennai Outer)
Service Tax
2018 (8) TMI 1684 – CESTAT CHENNAI – TMI
CESTAT CHENNAI – AT
Dated:- 8-6-2018
ST/COD/40358/2018 in ST/40973/2018 – Misc Order No. 40506/2018
Service Tax
Ms. Sulekha Beevi CS., Member (Judicial)
Shri M. Kannan, Advocate for the Appellant
Shri R. Subramaniyan, AC (AR) for the Respondent
ORDER
The above application seeking condonation of delay is filed by the appellant seeking to condone the delay of 55 days in filing the appeal.
2. On behalf of the appellant, the Ld. Counsel, Shri M. Kannan, submitted that only when the Range Officers sought to know whether Appeal had been filed against O.I.A. No. 160/2017 (CTA
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M/s Abhay Traders Versus State Of U.P. And 3 Others
GST
2018 (9) TMI 368 – ALLAHABAD HIGH COURT – [2018] 2 GSTL 39 (All), [2018] 59 G S.T.R. 199 (All)
ALLAHABAD HIGH COURT – HC
Dated:- 8-6-2018
WRIT TAX No. 909 of 2018
GST
Mr. Pankaj Mithal and Mr. Jayant Banerji, JJ.
Counsel for Petitioner :- Satyawan Shahi
Counsel for Respondent :- C.S.C.,A.S.G.I.
ORDER
The goods of the petitioner in transportation along with the vehicle was seized under Section 129 of the Uttar Prade
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M/s Ujala Marketing And 2 Others Versus Union Of India And 4 Others
GST
2018 (9) TMI 369 – ALLAHABAD HIGH COURT – [2018] 2 GSTL 45 (All)
ALLAHABAD HIGH COURT – HC
Dated:- 8-6-2018
WRIT TAX No. – 907 of 2018
GST
Mr. Pankaj Mithal and Mr. Jayant Banerji, JJ.
Counsel for Petitioner :- Naveen Chandra Gupta
Counsel for Respondent :- A.S.G.I.,C.S.C.,Om Prakash Srivastava
ORDER
Heard Shri N.C. Gupta, learned counsel for the petitioners and learned Standing Counsel for the respondents.
The petitioners are registered dealers. Their goods under transportation along with the vehicle was seized on 12.4.2018 under Section 129 of the U.P. G.S.T. Act. The seizure was challenged by the petitioners by filing a writ petition in thi
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d where the seized goods are kept by the authorities till they are ordered to be released by the competent authority or court. The respondents cannot be keep on detaining or seizing the goods and to keep them on the road itself which may ultimately create numerous other problems.
In view of the aforesaid facts and circumstances, we dispose of the writ petition with the direction to the Appellate Authority that is respondent no. 4 to decide the appeal of the petitioners in accordance with law most expeditiously if possible within a period of one month from today and to forthwith release the seized goods and vehicle of the petitioners on their furnishing security other than cash and bank guaranteed to the satisfaction of the authority concer
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In Re : Agarwal Industries Pvt. Ltd.
GST
2018 (9) TMI 973 – AUTHORITY FOR ADVANCE RULING – ANDHRA PRADESH – 2018 (16) G. S. T. L. 276 (A. A. R. – GST)
AUTHORITY FOR ADVANCE RULING – ANDHRA PRADESH – AAR
Dated:- 8-6-2018
Ruling No. AAR/AP/06A/(GST)/2018, Application No. AAR/08/(GST)/2018
GST
Shri J.V.M. Sarma, Member (State Tax) and Amaresh Kumar, Member (Central Tax)
REPRESENTED BY : Shri M. Rama Chandra Murthy, for the Assessee.
ORDER
M/s Agarwal Industries Private Limited, Plot No. 5A/1, Vakalapudi, IDA, Kakinada-533007 (hereinafter also referred as applicant), having GSTIN : 37AACCA0094RIZA are engaged in manufacturing of ingredients of poultry feed, particularly involved in manufacturing of substitut
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tion lists of taxpayers between the Centre and State in the prescribed manner). Accordingly, the application was forwarded to the jurisdictional officers and also a copy marked to the Central Tax authorities to offer their remarks as per the Section 98(1) of CGST/APGST Act, 2017, and requested for the information. In response to communication, the concerned jurisdictional officer offered their remarks and stated that no proceedings are pending relating to the applicant, and no proceedings were passed on the issue, for which the advance ruling sought by the applicant.
3. A personal hearing was fixed on 21st May, 2018 which was attended by Shri M. Rama Chandra Murthy, authorized representative on behalf of the applicant. The applicant
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In Re : HP India Sales Private Limited
GST
2018 (10) TMI 1515 – AUTHORITY FOR ADVANCE RULING – MAHARASHTRA – 2018 (18) G. S. T. L. 658 (A. A. R. – GST)
AUTHORITY FOR ADVANCE RULING – MAHARASHTRA – AAR
Dated:- 8-6-2018
GST-ARA-38/2017-18/B-45
GST
SHRI B.V. BORHADE, AND SHRI PANKAJ KUMAR, MEMBER
PROCEEDINGS
(Under section 98 of the Central Goods and Services Tax Act, 2017 and the Maharashtra Goods and Services Tax Act, 2017)
The present application has been filed under section 97 of the Central Goods and Services Tax Act, 2017 and the Maharashtra Goods and Services Tax Act, 2017 [hereinafter referred to as “the CGST Act and MGST Act”] by HP India Sales Private Limited, the applicant, seeking an advance ruling in respect of the following questions:
i. Classification of ElectroInk supplied along with consumables under GST; and
ii. Determination of time and value of supply of ElectroInk with consumables under the indigo press Contract.
At the outset, we would lik
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2017 (referred as “MSGST Rules”), having GSTIN 27AAACC9862F1ZI, are engaged inter alia in providing printing supplies to be used in HP's Indigo press machines supplied to customers.
2. The HP Indigo digital printing press (hereinafter referred as HP Indigo) is a printing press uniquely designed for ensuring best quality prints in the industry along with wide colour gamut, substrate versatility, speed, productivity and with the ability to vary every printed copy.
3. The HP Indigo machine is based on a unique digital offset colour technology specially designed to cater the printing requirements of large scale print service providers. The HP Indigo printers are significantly different from other office and industrial use printers due to the specialized liquid ink (hereinafter referred as ElectroInk) being used in its print process.
4. Additionally, ancillaries comprising of oil, binary ink developer, bib, blanket, print imaging plate and other machine products (hereinafter collect
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terms in relation to supply of ElectroInk with consumables. Importantly, the contract stipulates that the supplies shall be the property of the Applicant till such time the supplies are utilized in the presses by the customer for effecting prints.
9. Further, the ElectroInk along with the consumables are moved by the Applicant to the authorised reseller locations in the States of Tamil Nadu, Gujarat and Punjab under a delivery challan along with the necessary road permit, where applicable.
10. Pursuant to the same, such goods are transported by the authorized reseller to the respective customer locations as segregated geographically across India.
The arrangement is diagrammatically explained below:
12. The Applicant has contracted with authorized resellers for making supplies of ElectroInk with cons
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he running statement of accounts are collated for the respective end customers, the Applicant raises a consolidated invoice for the click charges on the reseller. Sample copy of the invoice raised by the Applicant on the reseller is enclosed as Annexure 4.
18. Also the reseller raises an invoice on each of the end customers based on the contractual arrangement between the reseller and the end customer. Sample copy of the invoice raised by the reseller on the end customer is enclosed as Annexure 5.
QUESTION ON WHICH ADVANCE RULING IS SOUGHT
19. In light of the above facts disclosed, the Applicant wishes to seek clarification on the following matters from the Authority for Advance Ruling established in the State of Maharashtra under the MSGST Act:
I. Classification of ElectroInk supplied along with consumables under GST, and
II. Determination of time and value of supply of ElectroInk with consumables under the indigo press contract
STATEMENT CONTAINING APPLICANT'S INTERPRETATIO
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nt consisting of two or more taxable supplies of goods or services or both, or any combination thereof, which are naturally bundled and supplied in conjunction with each other in the ordinary course of business, one of which is a principal supply”.
ii. Further, Section 8 of the MSGST Act provides that the nature of a composite supply shall be treated as a supply of the principal supply contained therein.
iii. In this regard, Section 2(90) of the MSGST Act defines principal supply as “the supply of goods or services which constitutes predominant element of a composite supply and to which any other supply forming part of that composite supply is ancillary”
iv. Accordingly, the nature of the predominant element supplied in a composite supply shall be deemed as the nature of the entire value of supply and levying the rate of GST as applicable on the principal supply.
v. Drawing inference from the above legal provisions, a bundled supply of goods shall constitute a composite supply unde
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dices at page 2
“6. Imaging Products” mean ElectroInk(r), Photo Imaging plates, binary ink developer (BIDs), printing blankets, recycled agent, imaging agent and imaging oil.
Accordingly, the supplies involved in HP Indigo press arrangement comprises of supply of two or more taxable goods being made thereof. Further, the term used in the definition, “or any combination thereof indicates that any combination of supply of two or more goods as a bundle satisfies the requirement for being classified as a composite supply.
– The supply of such goods is naturally bundled
Point 1 of Section C-SUPPLIES at page 3
“3. The Indigo Presses require consistently superior quality Supplies which include Imaging Products, accessories and Operator Maintenance Parts.
Additionally, the document briefing on the Indigo Press Supply Technology as enclosed herewith as Annexure 1 details the printing cycle at page 2 which provides for the manner in which each product is interlinked with the other and requ
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t for each Indigo Press Product Line under the same Supplies purchase program.”
Point “a” of Section G (1) – TIER PROGRAM FOR PURCHASE OF SUPPLIES BY RESELLER at page 4
a. “Click” means a chargeable unit for a Single Color Separation transferred onto substrate, except in the case of textured effect printing, where it is the action of texturing by applying pressure between the substrate and the mold. A Click unit may vary depending on the press model.
The Indigo press machine requires all the Supplies do be present in the device and collectively consumed. The invoicing for such supplies is also done on a per click basis, referring to the charges for a combined use of the ElectroInk and all the other consumables supplied. Therefore, the Electolnk along with the consumables are naturally bundled.
-The goods or services are supplied in conjunction with each other in the ordinary course of business
Point 1 of Section B – Appointment at page 3
“1. HP appoints Reseller as an authorized,
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e mold. A Click unit may vary depending on the press model.
Therefore, drawing reference from the above extracts of the contract, the Indigo press supplies are conisidered as being supplied in conjunction to each other based on the following facts:
* The Supplies are received by the authorised reseller from the Applicant as a
* bundle and are as-is supplied to the end customer;
* Further, the bundled supply of goods is made at the same point of time and is not split over different time periods;
* The billing for such supplies by the Applicant to the authorised reseller and by the authorised reseller to the end customer is also done on a consolidated basis for the entire bundled value of goods consumed and not on per category of goods supplied basis.
Further, the test of supplies being made in the ordinary course of business is satisfied depending on the frequency of the transaction in which the goods are supplied as a bundle. In this regard, re-iterating the above facts, the
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ly, other goods supplied in this regard are mere ancillary products to the ElectroInk in order to support the printing of the final image onto the paper.
The Applicant also submits that the HP indigo digital offset colour technology guarantees the best quality prints in the industry. Further, the liquid ink supplied in this regard is unique to indigo presses to ensure wide and accurate images matching the media. Accordingly, the printing ink supplied herein is the predominant element to ensure execution of entire supply contract by the Applicant
Additionally, every product supplied herein has a separate lifespan independent of each other. Accordingly, it can be inferred that consumables are necessary only to provide support function to the activity of printing and ensuring image processing is smoother and faster. Also, the mode of billing in relation to such supplies is based on the number of dicks generated during a specific period, which primarily requires printing ink to be loaded
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nation of time and value of ElectroInk supplied along with consumables under the Indigo press contract
21. With regards the determination of time and value of ElectroInk supplied along with consumables under GST, the Applicant makes the following submissions:
i. Considering the facts disclosed above in relation to ElectroInk supplied with consumables under GST, the Applicant understands that such goods qualify within the definition of “continuous supply of goods” as prescribed under Section 2(32) of the MSGST Act and reproduced hereunder:
” supply of goods which is provided, or agreed to be provided, continuously or on recurrent basis, under a contract, whether or not by means of a wire, cable, pipeline or other conduit, and for which the supplier invoices the recipient on a regular or periodic basis and includes supply of such goods as the Government may, subject to such conditions, as it may, by notification, specify”.
ii. The Applicant supplies the ElectroInk and consumables
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non-compliance on the part of the Customer with regard to the above-mentioned the same shall be solely to the account of the Customer. If this Agreement or a relevant purchase order is cancelled or terminated, HP will require Reseller to inventory the Supplies and HP shall bill Reseller for Supplies on hand at the Site and not returned to HP within the time specified by HP…”
iii. The above clause suggests that the goods delivered by the Applicant to the Customer through the Reseller shall remain the property of the Applicant and shall be passed on to the Customer through the Reseller only upon invoicing for the same and receiving payment. Therefore the supply of goods is being made on a recurrent basis based on the invoicing by the Applicant.
iv. Since such supplies made by the Applicant are on a continuous basis being in accordance with the terms of the contract entered thereunder and requiring the Applicant to raise an invoice on a periodic basis (as per the number of clicks ma
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ent of account shall be raised within 15 days from the end of each calendar month with respect to supplies made in the preceding month. A sample copy of the successive statement of account is enclosed as Annexure 4.
Point 5 of Section G – at page number 5
“5 ” Within 15 days from the end of each calendar month HP shall issue an invoice to Reseller for the supplies utilised under the Tier Program in the preceding month”
viii. Therefore, the Applicant understands that “supply” under GST law is not effected at the time of removal of goods from its registered location in Mumbai, but when the goods are used by the customer and correspondingly a statement of accounts is raised based on the number of clicks made by the customer in the preceding month.
ix. In this regard, the Applicant understands that the time of supply involved in respect of supply of ElectroInk with consumables to authorised reseller shall be based on the invoice raised basis the statement of accounts covering the n
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details the principle characteristics of its predominant component consumed in the printing process, the HP Indigo's liquid ink – ElectroInk technology along with its uses.
Brief on Digital Offset Colour Technology
The HP Indigo process is fully digital from image creation to printing. The printed image is created directly from digital data, avoiding the use of any “analogue” intermediate media. Further, due to its fully digital process, every image can be a new one, enabling information to be varied as required.
A notable difference between conventional offset and HP Indigo digital offset printing technology is that HP Indigo's ink-ElectroInk, transfers from the blanket to the substrate with virtually no ink splitting that characterizes conventional offset printing systems. This enables the creation and transfer of a different image each printing cycle.
Further HP Indigo technology enables digital printing in full colour. The use of “on the fly colour switching” configura
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r resolution, uniform gloss, sharp image edges, and very thin image layers.
The thin image layer closely follows the surface topography of the paper. This gives a highly uniform finish, complementing the paper and resulting in a similar texture both on the image and on the non-image areas. The HP Indigo ElectroInk is available in an increasing range of colours.
ElectroInk is supplied in a concentrated form that is loaded into the press in cartridges in a “clean hands” operation. Inside the press it is fed into ink supply tanks, diluted with oil and combined with a charging control fluid, to form a fluid mixture of carrier liquid and colourant particles ready for printing. The mixing is done under accurate automated control, resulting in a stable ink with nearly constant physical traits, leading to consistent prints. Furthermore, ElectroInk incorporates pigments which are the same as offset; this supports both the price and the availability of the final ink product.
The Printing Cycl
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ivity and versatility. The cycle revolves around the use and consumption of the HP Indigo's liquid ink – ElectroInk, to yield the best in the class prints. The ancillaries to the printing process consisting of products such as PIP, BID, blanket and other machining products complement and support the transfer of ink into the paper in the most optimum manner to produce quality prints.
Summary
The HP Indigo presses due to their unique technology lead to productivity, by its ability to change data, colour, and substrate at will and with no time penalty. The HP Indigo ElectroInk process is inherently faster than any DEP process by nearly an order of magnitude. The printing presses are robust and designed for 24/7 production. Critical process elements are automatically controlled by the press and reduce operator intervention.
While competing with offset printing for print quality, the digital technology offers important benefits, both economic and environmental. The HP Indigo's li
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ly of indigo press consumables
The Applicant wishes to submit that the terms of reseller agreement (copy provided as Annexure 2 to the Statement of facts submitted along with the application for advance ruling) entered on July 19, 2013 stands valid as on date. Further, any rate revision required to the supply program are agreed mutually between the Applicant and the reseller from time-to-time. However, in this regard no amendment is made to the master agreement dated July 19, 2013.
2. Break-up of revenue earned by Applicant during the last financial year between tier and a-Ia-carte program
The Applicant wishes to submit break-up of revenue earned during the F.Y. 2017-18 for supply of consumables used in Indigo press machines, between tier (click) and a-la-carte model as under:
Sl. No.
Supply model
Revenue earned (in mns.)
% to total revenue
1
Tier (click) Model
1,179.35
99.14
2
A-la-carte
10.28
0.86
Total
1,189.63
100
While all customers in India who have pur
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king print activity. However, the consumables supplied in relation to such printers vary differently from consumables supplied for effecting print from HP indigo machines.
Further, the Applicant wishes to submit that globally where the local regulations permit, the indigo press consumables supplied by HP are charged on a per click basis, based on the actual consumption of goods.
4. Nature of supply under the tier program
In addition to the submissions made in the statement of facts filed along with the application for advance ruling, the Applicant wishes to submit that the tier program of the indigo consumables supply model is a composite supply made under the GST Act. The supply satisfies all of the following conditions prescribed in this regard:
* Supply made by a taxable person to a recipient consisting of two or more taxable supplies of goods or services or both, or any combination thereof:
The HP indigo machine consistently requires superior quality of imaging products for e
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ndled.
In this regard, the Applicant wishes to draw reference to the relevant extracts of the reseller agreement (submitted as Annexure 2 to the statement of facts) to prove the intention of the parties of the contract:
Section 1, Page 1
“Authorization to resell Indigo supplies………” – Redington shall not be the consumer of such goods and only an authorized representative of HP for making the supplies;
Section A, Point 79, Page 2
“Tier Program means the supplies purchase program defined in Section G below, which is subject to this Agreement, and whereby the amount the Reseller shall be charged for Supplies shall be a function of the number of print impressions counted, as defined in Section D below”
Section G, Point 3, Page 5
'Supplies shall remain the property of HP until utilized in the Press(es).”
Section A, Point 11, Page 2
“Maximum Usage Per Impression” means the maximum usage of Imaging Products (ElectroInk and other ancillaries) and/or Operator Maintenance Parts
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basis) which is the essence of the transaction. The quantity of consumables that should be used for an impression is pre-calculated by the Applicant and is constant for all Indigo presses of a particular series. As the print occurs, a particular quantity of each consumable is used and accordingly billed.
Additionally, drawing reference to the supplies agreement between the reseller and the customer, the intent of the parties prove that all the indigo press consumables shall be supplied and consumed together and invoiced based on such consumption. Highlighting, relevant extracts of the agreement as under:
Section 2 page 3
“The unused supplies under the terms of this agreement which are in the possession of the customer shall at all time remain the exclusive property of Redington”
Section 4 page 3
Invoice for the supplies will be raised based on the reading from the Print impression Counter noted…”
Accordingly, the intention of the applicant, reseller and customer is to supply an
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tion of the respective products. The goods are supplied to the end customer generally once a month or for some customers twice a month. The goods are not capable of being used if the same any one of them is not used as required.
* One of such supply is the principal supply
As evident from the chart explaining the flow of consumables, the printing ink (referred as ElectroInk) is the most predominant supply in the bundle. The ink flows through the entire process to effectively generate a print and produce the desired output. It is the most essential and highest consumed product (in terms of volume) in a printing cycle, evident from the fact that 41% of the consumption in terms of value is of ink (refer Annexure -1). The ink determines the quality and resolution of the image being printed, in the manner required by the customer.
* Illustration provided in the definition of composite supply under Section 2(30) of the CCST Act (similar provision in the Maharashtra State GST Act):
Wher
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anket, PIP etc. are essential for printing purpose and has no separate use for customer.
* Additional conditions for a composite supply
Drawing reference to the clarification issued by the Central Board of Indirect Taxes and Customs (“CBIC”) on the concept of Composite supply via a flyer, whether a supply qualifies as a composite supply would depend upon the normal or frequent practices followed in the area of business to which services relate. Such normal and frequent practices adopted in a business can be ascertained from several indicators some of which are listed below:
a. The perception of the customer-
As explained above, the perception of the customer is to receive (consume) all such goods together in order to obtain the desired output. The same can further understood by the fact that the customer agrees to pay the consideration on click basis, i.e. the point in time when the supply of all the consumable actually occurs. Where these consumables were not naturally bundled, t
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and the other services combined with such service are in the nature of incidental or ancillary services which help in better enjoyment of a main service.
The HP Electrolnk is the principal supply as for the customers and suppliers the ElectroInk is the main component of the supply as is evident from the consumption. The ancillary supplies only help in transferring the ink from the cartridge to the paper.
d. There is a single price or the customer pays the same amount, no matter how much package they actually receive or use
The invoicing is done on a “per click basis” for all the supplies. Every customer is charged a single price for all the goods, irrespective of the fact that in achieving the final output of a print, there is different proportion of ElectroInk and other ancillaries consumed. Therefore, where a single price is charged in relation to bundled supply of goods or services, the said supply cannot be deemed as a “mixed supply” under GST. The definition of composite supply
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emoved, the nature of the supply would be affected.
The desired print output can only be achieved where all these goods are used as a bundle. They are integral to ensure the final output by the customer is in the manner required.
Therefore, considering the above facts and explanations, the HP indigo consumables supplied under the tier program satisfies all the conditions of a composite supply.
03. CONTENTION – AS PER THE CONCERNED OFFICER-
The submission of Departments as reproduced verbatim, could be seen thus-
1) The applicant submitted that the supply of ink along with oil, plates, consumables, blanket, bib etc. to the reseller is composite supply consisting of supply of goods or services which are naturally bundled and supply with conjunction with each other in ordinary course of business, where ink is the principle supply.
2) To constitute the supply as a composite supply following 4 tests are required to be satisfy:
*
Such supply involves two or more taxable supplies
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3000 and 3300 clicks respectively. This clears that the goods are not mandatorily required to supply in conjunction.
5) Naturally bundled” implies that the recipient of the supply has no option to decide whether he wishes to receive the various elements of the supply provided as a bundled supply. Whereas, if such an option to decide is possible, then the supply cannot be said to be “naturally bundled” and such a supply will not be treated as a “composite supply”. From the number of clicks the user can very well order the quantity of ink and other consumables separately. The way the supplies are bundled must be examined. Mere conjoint supply of two or more goods or services does not constitute composite supply. In the instant case though the ink and other consumables are supplied conjointly, this supply can be made separately and there is no natural binding effect. The method of billing, assignment of separate prices etc. may not be relevant. The applicant has devised the billing on
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ness the supplies are made available to actual user through the network of Distributor and Reseller. The transaction between importer / manufacturer and its distributor is recognized as independent and separate transaction. Further there are separate transactions of such distributor to reseller and reseller to actual user.
There is demand and supply of goods and services on regular basis. Most of times the supply is completed when the goods are removed from one entity/ location to another and tax liability has been discharged by the entity as per provisions. In this case there are two transactions, first between applicant and reseller and second between Reseller and actual user.
In GST law transfer of ownership in goods is not mandatory while effecting supply, e.g. In the case of Branch transfer, the goods are owned by a specific company, still the transfer between its two branches is treated as supply. The applicant has invited attention that the ownership / secured interest lies
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ty Commissioner of State Tax (E-618), Large Tax Unit – 2, Mumbai appeared and stated that they have made written submissions which may be considered.
The application was admitted and called for final hearing on 25.04.2018, Sh. K. Sivrajan, C.A. along with Sh. Kunal Wadhwa, C.A. appeared and made contentions as per their ARA application. Jurisdictional Officer, P. R. Nilewad, Deputy Commissioner of State Tax (E-618), Large Tax Unit – 2, Mumbai appeared and also made contentions as per his written submissions. The contention of both the parties were heard for this issue and matter was closed for order.
05. OBSERVATIONS
We have gone through the written and oral submission made by the applicant and jurisdictional officer in connection to the questions asked in Advance Ruling. As per the documentary evidences and written submissions produced on the record, it is observed that-
5.1 Applicant M/s. H.P. India Sales Pvt. Ltd. is a registered person and is providing to its authorised reselle
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customer uses the printer to take 100 prints in a month and each print costs of Rs. 10/-, then the customer shall be billed Rs. 1000/- for the ElectroInk along with the consumables used for the month. Accordingly applicant raises monthly consolidated invoice for the click charges on the reseller and in turn the reseller raises an invoice on each of the end customers.
We find that on the above factual matrix we have been called upon to decide two questions namely classification of Elecrolnk supplied along with consumables supplied under GST and the time and value of supply of ElectroInk with consumables.
5.2. we shall now deal with each question separately as below :
Question 1- classification of ElectroInk supplied along with consumables under GST .
On perusal of statement containing applicant's interpretation of law and facts with respect to this question, it is revealed that applicant has laid much emphasis to impress upon us that the impugned transaction is 'Composite Su
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ecipient consisting of two or more taxable supplies of goods or services or both, or any combination thereof, which are naturally bundled and supplied in conjunction with each other in the ordinary course of business, one of which is a principal supply;
Illustration: Where goods are packed and transported with insurance, the supply of goods, packing materials, transport and insurance is a composite supply and supply of goods is a principal supply.
Thus the essential ingredients that constitute Composite Supply are –
(i) the supply consists of two or more taxable supplies of goods or services or both or any combination thereof,
(ii) such supplies are naturally bundled
(iii) supplied in conjunction with each other and
(iv) such supplied are in the ordinary course of business, one of which is a principal supply.
Now let us examine whether the applicant satisfies the ingredient of composite supply.
In the light of facts discussed above, there is no doubt to conclude that the impugn
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reatment as a manner of determination of value of two services for the purpose of charging service tax is different. The ride is – 'If various elements of a bundled service are naturally bundled in the ordinary course of business, it shall be treated as provision of a single service which gives such bundle its essential character'.
In the present case we find that supply of ElectroInk with consumables by the applicant to the distributor/reseller constitute bundled supply which involves more than two taxable supplies of goods .
The next issue for our consideration in order to constitute impugned supply as composite supply is to find whether the supplies are naturally bundled .The word 'Naturally', is not defined under the ACT, we therefore refer to dictionary to under the meaning . The dictionary meaning is as below,
As per Merriam Webster
1 : by nature : by natural character or ability
* naturally timid
2 : according to the usual course of things : as might be ex
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nal offset and HP Indigo Digital offset Printing Technology. The terms of the contract as mentioned above clearly indicate that the recipient of the supply has no option to select individual supply but to accept it as bundled supply. Thus the transaction of supply of ElectroInk with consumables cannot be considered as Naturally bundled Supply but a compulsory supply. Thus the transaction before us cannot be said to be naturally bundled supply.
5.4 Now we have to decide another aspect of composite supply i.e. whether the goods are supplied in the ordinary course of business.
In this regard useful reference can be made to GST Flyers issued by CBEC in which certain tests are laid down which are listed below to ascertain supply of goods or services or both in the ordinary course of business.
1) The perception of the consumer or the service receiver
2) Majority of service providers in a particular area of business provide similar bundle of services
3) The nature of the various se
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the supplies. All such supplies are required to be consumed together in order to produce desired output. He therefore submits that the goods are supplied in conjunction to each other in the ordinary course of business. However we find that this submission and argument is contrary to their own admission that every product supplied herein has a separate lifespan independent of each other.
The applicant has submitted the consumption pattern of Electro ink along with consumables supplied to authorised reseller. From this consumption pattern it is noticed that if the requisite quantity of ink and other consumables are supplied to the printing machine for first time, the other consumables are not required to be supplied compulsorily. Assuming that the ink is required to be replaced after thousand clicks, the blanket or photo imaging plate is required to be replaced after approximately 3000 and 3300 clicks respectively. Thus we find that the goods are mandatorily supplied in conjunction. Th
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ly of a package consisting of canned foods, sweets, chocolates, cakes, dry fruits, aerated drinks and fruit juices when supplied for a single price is a mixed supply. Each of these items can be supplied separately and is not dependent on any other. It shall not be a mixed supply if these items are supplied separately;
There is no dispute that applicant's supplies consist of two or more than two supplies. It is also not in dispute that the supplies are made in conjunction with each other and made for a single price. We have already observed that each of the supplies can be supplied separately as they are not dependent on each other and one supply of goods does not occasion the supply of other goods. As the transaction put before us satisfies all the ingredient of 'mixed supply' we conclude the transaction would come and fall under 'mixed supply' as defined in clause 74 of section 2 of the GST Act.
Question 2: Determination of Time and Value of supply of ElectroInk
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its that supplies made by them are on continuous basis in accordance with the terms of the contract entered and the applicant is required to raise invoice on periodic basis We find that the supply of goods in the present case fulfil the basic tenets of 'continuous supply' and therefore we find from the above deliberation that the impugned supply is 'continuous supply of goods 'as defined in clause 32 of section 2 of the GST Act.
5.7 Time and Value of Supply –
The next issue for our consideration raised by the applicant is the time and value of supply of Electro Ink with consumables under the Indigo Press Contract. As per the provision of GST ACT, the liability to pay tax on goods arise at the time of supply as determined in accordance with the provisions of section 12 of the Act. As per section 12 the time of supply shall be:
Section 12(2) – Time of supply of goods.
(1) The liability to pay tax on goods shall arise at the time of supply, as determined in accor
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he date on which the payment is entered in his books of account or the date on which the payment is credited to his bank account, whichever is earlier.
(3) ………………………….
(4) ………………………….
(5) Where it is not possible to determine the time of supply under the provisions of sub-section (2) or sub-section (3) or sub-section (4), the time of supply shall-
(a) in a case where a periodical return has to be filed, be the date on which such return is to be filed; or
(b) in any other case, be the date on which the tax is paid.
(6) The time of supply to the extent it relates to an addition in the value of supply by way of interest, late fee or penalty for delayed payment of any consideration shall be the date on which the supplier receives such addition in value.
As we have already concluded that the impugned supply is a continuous supply of goods as defined in the clause 32 of section 2 of GST ACT, and therefore the provisions pertaining to time of sup
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cessive statement of account or payments are made, the invoice shall be issued before or at the time of each statement is issued or as the case may be, such payments are received.'
Accordingly we find that applicant has to raise invoice on or before 15th day from the end of each calendar month with respect to supplies made in the preceding month. Thus the time of supply in the present case will be the earliest date between the date of invoice or the date of payments with respect to impugned supply as per the provisions of section 12(2) of the GST Act.
5.8. Value of Supply-
The next issue pertains to values of supply of ElectroInk with consumables under the Indigo Press Contract, the details of such supplies are as below:-
SI. No.
Nature of product
HSN
Consumption (%)
1.
Printing Ink (ElectroInk)
32151190
41%
2.
Blanket
59111000
16%
3.
PIP – Photo imaging plate
59119090/ 84439100
13%
4.
OMP -Other machine products (miscellaneous)
Multiple
10%
5.
BID – Binary
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In Re: Jayalakshmi Tobacco Company
GST
2018 (11) TMI 399 – AUTHORITY FOR ADVANCE RULING, ANDHRA PRADESH – TMI
AUTHORITY FOR ADVANCE RULING, ANDHRA PRADESH – AAR
Dated:- 8-6-2018
AAR/AP/03(GST)/2018 In Application No. 06/AAR/GST/2018
GST
SRI. J.V.M SARMA AND SRI. AMARESH KUMAR, MEMBER
Present for the Applicant: Sri Vallabhaneni Mohan Rao,
Present for the Jurisdictional Officer: Remarks Received
Note: Under Section 100 of the APGST Act'2017, an appeal against this ruling lies before the appellate authority for advance ruling constituted under section 99 of APGST Act'2017, within a period of 30 days from the date of service of this order.
1. M/s. JAYALAKSHMI TOBACCO COMPANY, (hereinafter also referred as an applicant), having GSTIN:37B1WPS7726L1Z2 are commission agents dealing with tobacco leaves. The applicant has various business activities, such as procuring tobacco leaves from farmers as well as from traders and acting either as commission agent or as selle
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to both the jurisdictional officers (State Tax & Central Tax) to offer their remarks as per the Sec. 98(1) of CGST / APGST Act'2017, and requested for their remarks and also for relevant records. In response, the jurisdictional officer i.e Assistant Commissioner(ST), Indrakeeladri Circle, No. I Division, Vijayawada offered their remarks through an e-Mail, dated : 29th March 2018. In their remarks the jurisdictional officer stated that, there is no proceedings passed by the authority and no proceeding pending before any authority/forum relating to the applicant.
4. Based on the remarks received from the jurisdictional officer, this authority feels necessary to hear the applicant for admitting the application and to pronounce the advance ruling. Accordingly, a personal hearing was fixed on 04.04.2018. In response to the notice, Sri.Vallabhaneni Mohana Rao, authorized representative on behalf of the applicant, had attended and made oral submissions, and submitted a copy of procurement in
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al deliberations basing on the material on record, the members of this authority expressed different views on the issues raised by the applicant and found no consensus to pronounce any ruling.
As per sub-section 2 of section 98, CGST/APGST Act,2017, this authority is referring this application to the Appellate Authority for further action on the issues raised by the applicant. Hence, to be treated as 'ruling is not issued' on this application. Accordingly the application disposed off.
Findings of the State Member :
1. M/s. JAYALAKSHMI TOBACCO COMPANY, (hereinafter also referred as an applicant), having GSTIN:37BIWPS7726L1Z2 are commission agents dealing with tobacco leaves. The applicant has various business activities, such as procuring tobacco leaves from farmers as well as from traders and acting either as commission agent or as seller as the case may be.
2. The applicant has filed an application in Form GST ARA-01, dated 14.03.2018, for seeking advance ruling on 'tax liability
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of supply or receipt of goods or services or both on behalf of another;
Section 2(6) “aggregate turnover” means the aggregate value of all taxable supplies (excluding the value of inward supplies on which tax is payable by a person on reverse charge basis), exempt supplies, exports of goods or services or both and inter-State supplies of persons having the same Permanent Account Number, to be computed on all India basis but excludes central tax, State tax, Union territory tax, integrated tax and cess;
Sec. 24. Notwithstanding anything contained in sub-section (1) of section 22, the following categories of persons shall be required to be registered under this Act
(vii) persons who make taxable supply of goods or services or both on behalf of other taxable persons whether as an agent or otherwise;
Section 7(1) For the purposes of this Act, the expression “supply” includes:-
(c) the activities specified in Schedule I, made or agreed to be made without a consideration.
According to
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to States) Act, if charged separately by the supplier;
(b) any amount that the supplier is liable to pay in relation to such supply but which has been incurred by the recipient of the supply and not included in the price actually paid or payable for the goods or services or both;
(c) incidental expenses, including commission and packing, charged by the supplier to the recipient of a supply and any amount charged for anything done by the supplier in respect of the supply of goods or services or both at the time of, or before delivery of goods or supply of services;
(d) interest or late fee or penalty for delayed payment of any consideration for any supply: and
(e) subsidies directly linked to the price excluding subsidies provided by the Central Government and State Governments.
Explanation.-For the purposes of this sub-section, the amount of subsidy shall be included in the value of supply of the supplier who receives the subsidy.
After due verification of the material on re
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er S.No. 3 of Notification 04/2017 – Central Tax (Rate), Dated :28th June 2017, Reverse Charge is applicable on tobacco leaves on receipt of the goods. by a registered person from agriculturist.
Issue. No.4 Who has to pay GST when commission agent sell the tobacco leaves received from trader in an auction? Can commission agent collect GST from buyers and pay or not?
Ruling : The transaction referred to in falls under 'acting as an agent' on behalf of other taxable persons, who makes taxable supply of goods as an agent. As per clause VII of Section 24 of CGST/ APGST Act' 2017, the Commission Agent has to get registered under the Act and has to pay GST when sell the tobacco leaves received from trader in an auction, and can collect GST from buyers.
Issue.No.5 The Commission Agent receives tobacco from farmers and sell them within the state. He takes commission from farmers for his services and it is less than Rs. 20 Lakh in a year. Will the commission Agent is liable to collect GST in
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receives tobacco from farmers and traders and sell them in an auction and takes commission his services. The applicant has raised following questions before the Authority for Advance Ruling:
1. Will GST be applicable on sale of tobacco leaves received from farmers made by Commission Agent in an auction and his turnover is less than Rs. 20 Lakh?
2. In case, there is GST in the above situation, who has to pay the tax?
3. Will reverse charge provisions applicable for tobacco leaves or not?
4. Who has to pay GST when commission agent sell the tobacco leaves received from trader in an auction? Can commission agent collect GST from buyers and pay or not?
5. The Commission Agent receives tobacco from farmers and sell them within the state. He takes commission from farmers for his services and it is less than Rs. 20 Lakh in a year. Will the Commission Agent is liable to collect GST in this situation?
2.1 I have gone through the facts of the case as given by the applicant i.e. the ap
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vation, harvesting, threshing, plant protection or testing;
(b) supply of farm labour;
(c) processes carried out at an agricultural farm including tending, pruning, cutting, harvesting, drying, cleaning, trimming, sun drying, fumigating, curing, sorting, grading, cooling or bulk packaging and such like operations which do not alter the essential characteristics of agricultural produce but make it only marketable for the primary market;
(d) renting or leasing of agro machinery or vacant land with or without a structure incidental to its use;
(e) loading, unloading, packing, storage or warehousing of agricultural produce;
(f) agricultural extension services;
(g) services by any Agricultural Produce Marketing Committee or Board or services provided by a commission agent for sale or purchase of agricultural produce.
2.2 As seen from above, services provided by a commission agent for sale or purchase of agricultural produce is having NIL rate of GST. Further the definition of a
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hall be exempted vide above referred Notification.
3. It would be pertinent for me discuss another entry in the same Notification 11/2017-Central Tax (Rate), dated 23.06.2017. Sl.No. 5 having 9% rate of CGST (18% GST). The same reads as:
“Services in wholesale trade.
Explanation-This service does not include sale or purchase of goods but includes:
Services of commission agents, commodity brokers, and auctioneers and all other traders who negotiate whole sale commercial transactions between buyers and sellers, for a fee or commission' Services of electronic whole sale agents and brokers, Services of whole sale auctioning houses.”
I find that Sl.No. 5 of referred Notification is for services of Commission agents. which is peged at 18% GST (9+9). However, applicant being a Commission Agent dealing in sale and purchase of agricultural produce (tobacco leaves), I find Sl.No. 24 of the Notification having NIL rate of Tax is applicable on them.
4. AS far as Registration is concern
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Refund of IGST on export of Goods-Extension of date in SB005 alternate mechanism cases and Clarification in other cases
PUBLIC NOTICE NO. 54/2018 Dated:- 8-6-2018 Trade Notice
Customs
GOVERNMENT OF INDIA
OFFICE OF THE COMMISSIONER OF CUSTOMS (AIRPORT & ADMN)
AIR CARGO COMPLEX, NSCBI AIRPORT, KOLKATA: 700 052.
F. NO. S41(Misc) – 64/2017CCX/Pt
Date: 08.06.2018
PUBLIC NOTICE NO. 54/2018
Subject: Refund of IGST on export of Goods-Extension of date in SB005 alternate mechanism cases and Clarification in other cases reg.
Attention of the Exporters/Customs Brokers is invited to CBIC's Circular Nos. 15/2018-Customs dated 06.06.2018, 05/2018-Customs dated 23.02.2018 and 08/2018-.Customs dated 23.03.2018 wherein an alternative me
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rs, IGST refunds are also stuck on account of SB003 error on the customs side. This error occurs when there is a mismatch between GSTIN entity mentioned in the Shipping bill and the one filing GSTR-1/GSTR-3B. Board has examined the issue and it has been decided to provide a correction facility in cases where although GSTIN of both the entities are different but PAN is same. This happens mostly in cases where an entity filing Shipping bill is a registered office and the entity which has paid the IGST is manufacturing unit/other office or vice versa. However, in all such cases, entity claiming refund (one which has filed the Shipping bill) will give an undertaking to the effect that its other office (one which has paid IGST) shall not claim a
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IN RE : INDIAN COTTON SOLUTIONS. COM PVT. LTD.
GST
2019 (1) TMI 1389 – AUTHORITY FOR ADVANCE RULING – ANDHRA PRADESH – 2018 (16) G. S. T. L. 310 (A. A. R. – GST)
AUTHORITY FOR ADVANCE RULING – ANDHRA PRADESH – AAR
Dated:- 8-6-2018
Ruling No. AAR/AP/6(GST)/2018 in Application No. AAR/7(GST)/2018
GST
Shri J.V.M. Sarma, Member (State Tax) and Amaresh Kumar, Member (Central Tax)
REPRESENTED BY : Shri M. Gopi Krishna, for the Assessee.
ORDER
M/s. INDIAN COTTON SOLUTIONS.COM PRIVATE LIMITED, (hereinafter also referred as applicant), having GSTIN : 37AADC17003 DIZZ are engaged in supply of service by providing Mobile Laboratory Services, to test the quality of Cotton.
2. The applicant has filed an application in FOR
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es to offer their remarks as per the Section 98(1) of CGST/APGST Act, 2017, and requested for the information.
4. In response to this communication, the concerned jurisdictional officer, offered their remarks, and stated that there were no proceedings pending relating to the applicant, and no proceedings were passed on the issue, for which the advance ruling sought by the applicant.
5. A personal hearing is called for on 4-4-2018, to hear from the applicant, Sri M. Gopi Krishna, authorized representative had attended on behalf of the applicant and submitted the facts of case. It is submitted that the firm purchased five vehicles to use as mobile cotton labs, for the purpose of testing of quality of cotton. It is argued that th
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K. Ranganath Adiga S/o Late Seetharama Adiga Proprietor, Lion Security Services Versus The Principal Commissioner Of Central Tax, Bangalore
GST
2018 (6) TMI 1575 – KARNATAKA HIGH COURT – TMI
KARNATAKA HIGH COURT – HC
Dated:- 8-6-2018
Criminal Petition No. 9858 of 2017
GST
MR. JOHN MICHAEL CUNHA J.
Petitioner (By Sri Dayanand Hiremath, Advocate)
Respondents (By Sri Jeevan j. Neeralagi, Advocate)
O R D E R
This petition is filed under Section 438 of Cr.P.C. seeking anticipatory bail in the event of arrest of the petitioner by the respondents or their sub-ordinate officers pursuant to the summons dated 15.11.2017, issued by the Superintendent, Anti-Evasion Unit-V, GST West Commissionerate, Bangalore.
2.
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dence or control] in respect of an enquiry being held in connection with Service Tax matters.
Now, therefore in exercise of the powers conferred on me under Section 14 of the Central Excise Act, 1944, read with Section 83 of the Finance Act, 1994, I hereby summon you to appear before the undersigned, in person, alongwith the documents as per the Schedule to the Summons in the Office of the Principal Commissioner of Service Tax, Anti-Evasion Unit-V, GST West Commissionerate, TTMC (BMTC BUILDING), BANASHANKARI, BANGALORE-560 070 AT 10:30 Hrs. on 17.11.2017.
You are not to leave the GST West Commissioner's office without permission and if the case is adjourned, without ascertaining the date of adjournment.
Non-compliance with this summons i
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gst rate and credit eligibility
Query (Issue) Started By: – Ramakrishnan Seshadri Dated:- 7-6-2018 Last Reply Date:- 9-6-2018 Goods and Services Tax – GST
Got 7 Replies
GST
Dear Sir,
We kindly request the experts to answer my query.
Our Directors went to hyderabad and stayed in hotel for business purpose. The hotel has charged 18% igst in their bill by mentioning our GSTIN. in tamilnadu.Whether credit is eligible or not and it is correct or not.
Another question is our directors stayed in telengana and do work in andhra pradesh. The telengana hotel has charged 9% cgst and 9% sgst in their invoice. whether it is correct .
Pleae confirm the experts our query
Thanks & Regards,
S.Ramakrishnan
Reply By Rajagopalan Ranganathan
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not correct . CGST and SGST charged by Telegana hotel is correct. However credit of the same is not available to you located in Tamilnadu since such credit can be utilised within the state in which the service provider has gst registration.
Reply By Ramaswamy S:
The Reply:
Endorse the views.
Regards
S.Ramaswamy
Reply By YAGAY and SUN:
The Reply:
In case you have branch over there then you may get ITC if you get such bills at your branch offices.
Reply By Praveen Nair:
The Reply:
Dear Experts
As per the Section 12(3), all billing by Hotel (within the taxable territory) is subject to CGST & SGST. What are the cases where hotel can charge IGST?
In view of the above query, from the Hyderabad hotel point of view, will they be asked to
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GSTR-1. B2B invoice addition
Query (Issue) Started By: – Nikhil Oltikar Dated:- 7-6-2018 Last Reply Date:- 8-6-2018 Goods and Services Tax – GST
Got 2 Replies
GST
Can the Total invoice value of the B2B invoice in GSTR-1 be lesser than the taxable value of the invoice?
Reply By YAGAY and SUN:
The Reply:
In our view it cannot be.
Reply By KASTURI SETHI:
The Reply:
I concur with the views of M/s.YAGAY and SUN, Sirs. Total invoice value includes the element of tax also. Moreover, in
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RCM on registered GTA
Query (Issue) Started By: – kaushal jaishwal Dated:- 7-6-2018 Last Reply Date:- 8-6-2018 Goods and Services Tax – GST
Got 4 Replies
GST
Dear sir/mam
we are a pvt ltd. co. , if a registered GTA providing GTA service and no GST have been charged in bill but it is already registered in GST.
please advise whether the company is still liable under RCM to pay GST on registered GTA' bill if they are not charging GST on thier bill.
Reply By Rajagopalan Ranganathan:
The Reply:
Sir,
As per Sl. No. 1 of Notification No. 13/2017=Central Tax (Rate) dated 28.6.2017 as amended "
Supply of Services by a goods transport agency (GTA) who has not paid central tax at the rate of 6% in respect of transportation
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LIQUOR LICENSE LEASING AS IMMOVABLE PROPERTY?
By: – Dr. Sanjiv Agarwal
Goods and Services Tax – GST
Dated:- 7-6-2018
Liquor manufacture in India is very complicated with very few cases where brand owner, distiller and bottler are the same entity. Since license for distilleries are highly regulated by the State, brand owners get the liquor manufactured / bottled through on license lease basis which could be either by leasing of the distillery or factory (immovable property) itself or leasing of liquor license. Such liquor licensing is regulated by state excise laws and liquor manufacturing rules as made applicable to the State.
When we talk of renting or leasing services, we find that renting of immovable property is a taxa
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both were leased, i.e. factory premises as well as license of potable liquor and rectified spirits, revenue department wanted that factory leasing and license leasing should not be delinked and sought to tax both as renting of immovable property service, the tribunal (Cestat, Mumbai) ruled in favour of the assessee and against the department.
The appellants were engaged in the business of manufacturing and bottling of alcoholic beverages. The appellants held Potable Liquor License (PLL) and Rectified Sprit License (RSII). The appellants entered into an agreement under which the appellants leased their licenses. The appellants thereafter entered into an agreement for bottling at their plant and recovered bottling charges for the same.
Rev
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estrictions had been put on the factory, which had been licensed and no charges in the license premises could be made by the licensor without the permission.
It was further held that though license is granted in respect of manufactory but the same is granted to the person. The license given to a person in respect of a manufactory can be transferred to another manufactory on another site in the name of same person. License can be granted even before the manufactory comes into existence. From the Rules it was apparent that license by itself is not a immovable property and therefore leasing of license could not be treated as renting of immovable property service.
It thus concluded that license by itself is not immovable property and therefor
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Amendments to Foreign Trade Policy 2015-20 – Extension to Integrated Goods and Service Tax (IGST) and compensation Cess exemption under EOU scheme till 01.10.2018 — regd.
10/2015-2020 Dated:- 7-6-2018 Foreign Trade Policy
DGFT
Foreign Trade Policy
FTP
GOVERNMENT OF INDIA
MINISTRY OF COMMERCE AND INDUSTRY
DEPARTMENT OF COMMERCE
NOTIFICATION No. 10/2015-2020
NEW DELHI, DATED THE 7th June, 2018
Subject: Amendments to Foreign Trade Policy 2015-20 Extension to Integrated Goods and Service Tax (IGST) and compensation Cess exemption under EOU scheme till 01.10.2018 – regd.
S.O(E) – In exercise of powers conferred by Section 5 of FT(D&R) Act, 1992, read with Paragraph 1.02 of the Foreign Trade Policy, 2015-20, as amended from
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Capita India Pvt. Ltd. Versus Commissioner of CGST, Mumbai West
Service Tax
2018 (6) TMI 667 – CESTAT MUMBAI – TMI
CESTAT MUMBAI – AT
Dated:- 7-6-2018
Appeal Nos. ST/85468, 85531, 85746, 85747, 85749/2018 – Order No. A/86708-86712/2018
Service Tax
Mr. Ramesh Nair, Member ( Judicial )
Shri Prasad Paranjape, Advocate, for appellant
Shri Dilip Shinde, Assistant Commissioner (AR), for respondent
ORDER
These appeals are directed against Orders in appeal passed by the Commissioner(Appeals) whereby Ld. Commissioner(Appeals) upheld the rejection of refund claim amounting to Rs. 43,45,951/- for the period from April, 2013 to September, 2015. The said refund claim was filed by the appellant under Rule 5 read with Notification No. 27/12- CE(N.T.) dated 18-06-2012, the grounds for rejection of refund claim are as under:
Sr No
Particulars/reasons for disallowance
Amount(Rs.)
1
Service do not qualify as “input service”- absence of these services will have no adve
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en held that the apartment/ premises in respect of which consulting services have been aid to Urban Link Consulting Pvt Ltd is not incorporated ST/85468,85531,85746,85747,85749/2 3 018 in the ST 2 certificate of the appellant. Accordingly, the appellant is not entitled to refund of credit on the same(Rs. 1,100).
(iv) The learned Commissioner (Appeals) has rejected the contention of the appellant that while computation of refund under Rule 5 of the CCR read with Notification No. 27/2012, refund should be computed by applying the export ratio on 'total cenvat credit availed” for the period instead of “unutilised cenvat credit” remaining at the end of the period(Rs. 33,887)
(v) It is inter alia held on scrutiny of the invoices it is clear that customs house agent service is availed for debonding and not procurement of imported goods as claimed by the appellant used in providing output service(Rs. 22,857).
2. Being aggrieved by the said order, appellant filed present appeal.
3. Shri
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ale of diesel, he submits that vendor is providing power back up service to the appellant by means of diesel Generator set in the premises of the appellant. These services are for uninterrupted power supply. The charges of the same was cost of such operating expenses including the cost of diesel reimbursed by the appellant therefore even though the cost of diesel is reimbursed services provided is operating diesel set for uninterrupted supply of power, it cannot be said that appellant made payment against sale of the goods.
4. As regard the charge of sale of text article, he submits that service have been availed for preparation of various study material used for purpose of training, needs for the employee, appellant has not purchased any goods. In this regard, he placed reliance on the judgment of Hon'ble Delhi High court in case of VPSSR Facilities Vs Commissioner of Value added &Anr reported in [2017 99 VST 1].
5. As regard the objection on erection, commission and installation se
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ts:
(a) Commissioner of C. Ex. &ST NoidaVs Samsung India Electronics Pvt Ltd [2017(52) S.T.R. 497 (Tri. All)] ST/85468,85531,85746,85747,85749/2 6 018 affirmed in Commissioner Vs. Samsung India Electronics Pvt Ltd [2017(52) S.T.R. J 253(All)]
(b) Deepak Fertilizer & Petrochemicals Corporation Ltd Vs CCE[2013(32) S.TR. 532(Bom)]
(c) M portal India Wireless Solutions P. Ltd Vs. C.S.T. [2012(27)S.T.R. 134(Kar)]
7. As regard the dispute on the formula provided under Rule 5 of CCR, 2004 he submits that Ld. Commissioner has failed to correctly apply the formula for computation of refund for the period April, 2013 to September, 2013 inasmuch as he contended that unutilised Cenvat credit remaining at the end of the period should be taken as total Cenvat credit availed. He submits that as per Rule 5 of Cenvat Credit Rules, 2004 “net cenvat credit” defined, according to which total Cenvat credit availed during the period should be taken as net cenvat credit and not unutilised cenvat credi
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tes the findings of the impugned order.
9. I find that major amount of refund was rejected on the ground that services do not qualify as input service or same falls under exclusion category. In this regard, I would like to go through nature of service and use thereof which are reproduced below as submitted by appellant;
(i) Works Contract Services- Disputed amount Rs. 25,24,004
These services are procured in relation to the modernisation, renovation and repairs of the premises/office equipment of the appellant. Accordingly, these services are used in relation to the output services provided by the Company. The said services are not covered under the exclusion clause of the definition of “input service” as provided under Rule 2(l) of the Credit Rules. The detailed submission in regard is made in subsequent paragraphs
(ii) Renting of Immovableproperty service.
These services are availed in relation to the renting of the business premises from where the company operates its bu
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ed with respect to the installation/ re-erection of office units of the Appellant and other office equipment used at the business premises from where the output services are provided. These units/ equipment are used on a day-to-day basis in provision of output services. Accordingly, these services are essential to keep the assets in good condition without which the output services cannot be rendered. Therefore, maintenance and repair, installation and re-erectioning services are essential in provision of output services by the Appellant. The specimen copies of the invoices are attached at page no. 30-31 of the compilation.
(iv) Management maintenance and re * air services – The Appellant requires these services for regular various maintenance of electrical equipment/ computers/ servers, Air Conditioners, DG Sets and other asset s used in the business premises. These services are essential to keep the assets in good condition without which the outputs be rendered. Therefore, maintena
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credit is sought to be denied have been incurred during the provision of services provided by the vendor. Further, as per Rule 5(1) of Service Tax (Determination of Value) Rules, 2006, all the expenditure or costs incurred by the service provider in the course of providing taxable service shall be treated as consideration for the taxable service and included in the value for the purpose of charging service tax.
Given the same, it is pertinent to note that the said expenses are part of the provision of the main service provide by the vendor and tax is charged on the same as per the above rule. Accordingly, these services are used only in relation to the output services provided by the Appellant and hence the credit cannot be denied on the same.
(vi) Outdoor catering services –
These services have been availed by the Appellant in relation to catering facility provided to its employees. Further, it is pertinent to note that the Appellant being a business process outsourcing unit,
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ion to official work. Accordingly, these services are used in relation to the output services provided by the Appellant.
(viii) Sponsorship Services –
The said service is availed by the Appellant towards participation of specific employees in certain business conventions/ conferences to represent the Appellant. As per the prescribed procedure, the Appellant has discharged the service tax on the same under reverse charge basis and availed credit of the same. Accordingly, the said services are towards the business of the Appellant and the credit cannot be denied on the same. architect Services – These services have been availed in relation to sketching, specification and drawing plans of different modernisation and renovation works done at the business premises of the Appellant. Accordingly, these services are required for provision of output services provided by the company. The specimen invoice copies are attached at page no. 50 of the compilation.
(x) Business Support Service
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s.
(xi)Public relations management services
The said services have been availed by the Appellant in relation to various strategic counselling for the industry, media and perception research etc. The Appellant requires the said services for the purpose of analysing the market position and financial public relation. Accordingly, the said services are essential requirement of the Appellant to maintain its market value and used for the provision of services rendered.
(xii) Customs House Agent Services – disputed amount Rs. 22,857
The said services have been availed in relation to procurement of imported equipment which are used for provision of output services exported. The said equipment are primarily the I. T. equipment which is used in the provision of the output services by the Appellant. Accordingly, custom house agent's services are essential for procurement of I.T. equipment used in providing output services.
(xiii) Commercial training and coaching services – disp
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an organized and systematic manner which are necessary for smooth running of the business of the Appellant. As prescribed, the Appellant has discharged the service tax on such legal consultancy service as a recipient of service under reverse charge mechanism and hence is entitled to avail t same he credit of the
(xvi) Banking and Other Financial Services- disputed amount Rs. 8 738
The Appellant has availed these services in relation to purchase of foreign currency to be used by its employees during their official overseas visits for providing the output services. Accordingly, these services are used in relation to the provision of output services of the Appellant and hence have a direct nexus to the services exported by the Appellant. The specimen invoice copies are attached at page no. 37 to 46 of the compilation.
(xvii) Business Auxiliary Services- disputed amount Rs. 8,737
These service are availed in relation to renting charges for DG Sets in the business premises of t
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(xviii) Video Tape Production Agency Services-
The said services have been availed by the company in relation to video recording of certain events during the business meetings, seminars etc. of the company. Accordingly, these services are used in relation to the output services provided by the Appellant.
(xix) Technical Inspection and Certification Services
These services have been procured for inspection and testing of earthing wiring of the business premises. The said services are essential to maintain the proper working condition of various equipments used by the employees. Accordingly, these services are essentially required and used in relation to the output services provided by the Appellant.
(xx) Photography services-
The said services have been rendered by the vendor during the business events organised by the company in relation to photography services so that the important moments of the events can be captured for further reference and business promotion. Accor
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inting of the same. The said posters are displayed in various events for the purpose of business promotion and advertisement of the appellant's business. Promotion of business is an important requirement of the appellant. Accordingly, the said services are essential and used in relation to the out put services provided by the appellant.
10. From the nature of the services and use thereof as reproduced above, I find that all the services are essential services used for providing output service therefore refund in respect of cenvat credit on aforesaid services cannot be denied on the ground of nexus.
11. As regard the charge of exclusion of the service from the definition of input service under Rule 2(l), I find that except 'works contract service' all other services are falling under inclusion category. As regard the works contract service, it is in the nature of repair, maintenance and renovation of existing building of the service provider therefore same is not excluded from the am
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vice tax on such charges. In case of transaction alleged to have made as sale of text article, I find that this payment is towards preparation of various study material used for purpose of training needs of the employee which are required to provide out put service of the appellant. Therefore credit in respect of services or preparation of study material is admissible.
14. As regard erection, commission and installation, Ld. Commissioner denied the refund on the ground that service cannot be identified form the invoices, I find that appellant had explained to the ld. Commissioner(Appeals) that these services were availed in relation to installation/re-erection of the office unit of the appellant and other office equipment used at the business premises. Description mentioned in the invoice i.e. labour charges per spot service is related to labour work done for installation /re-erection of office. In this fact it is clear that service is input service and clearly identifiable hence ther
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Reena Engineers and Contractors Pvt. Ltd. Versus Kerala Water Authoirty
GST
2018 (7) TMI 1824 – KERLA HIGH COURT – 2018 (19) G. S. T. L. 16 (Ker.)
KERLA HIGH COURT – HC
Dated:- 7-6-2018
WP(C). No. 13630 of 2018
GST
DEVAN RAMACHANDRAN, J.
Petitioner: BY ADVS.SRI.SANTHOSH MATHEW SRI.ARUN THOMAS SRI.JENNIS STEPHEN SRI.ALPHIN ANTONY SRI.VIJAY V. PAUL SMT.KARTHIKA MARIA SMT.MARIA ROY
RESPONDENT: R1 TO R3 BY SRI.P.BENJAMIN PAUL, SC, KERALA WATER AUTHORITY
JUDGMENT
These two writ petitions are filed by the same petitioner, which is stated to be a Private Limited Company incorporated under the provisions of the Companies Act, 1956. The petitioner says that they are registered Class-A contractor who have been undertaking various works at the requisition of the Kerala Water Authority and such other Public and Private Limited undertakings.
2. The controversy in these cases relates to certain specified works already undertaken by the petitioner and the work orders have b
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me Tax at the rate of 2.266% and Labour Workers' Welfare Fund of 1%. According to them, when the work was being executed by them, the GST regime was implemented, as per which, the contractors were obligated to pay tax at the rate of 18% instead of 4.04% VAT. The petitioner asserts that, as per clause 8.15 of the Notice Inviting Tender (NIT), the Water Authority had agreed that any excess in taxes and duties within contract period will be borne by the said Authority.
4. The pleadings and the materials available on record show that, in fact, these assertions are virtually admitted by the Kerala Water Authority and as is clear from a circular issued by the Water Authority, dated 10.08.2017, a copy of which has been placed on record as Ext.P5 in both these writ petitions, the Water Authority clarified that “the difference between GST paid and the sum of all the taxes subsumed under GST applicable at the time of bidding shall be absorbed by Kerala Water Authority on production of payme
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ying with the stipulations in Ext.P5 circular, is that the concerned officer is awaiting directions from the Head Office. He points out that there is no other reason stated in the counter affidavit and according to him, this stand of the respondents, that they are awaiting permission from the Head Office, is completely untenable, since Ext.P5 circular has been issued by the Head Office, which is to say, the Managing Director of the Kerala Water Authority.
8. The learned standing counsel appearing for the respondents answers the submission of the petitioner by saying that though the payments are to be made by the Deputy Chief Engineer, Central Region of the Kerala Water Authority, he is not authorised to do so without the sanction and permission of the Head office, with respect to the amounts relating to the GST.
According to him, this is the reason why the bills of the petitioner were forwarded to the Head Office and that until and unless directions are received from the said office,
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not completed the works in question satisfactorily, it would not be reasonable on their part to keep these claims pending ad infinitum. I am certainly of the view that a decision on this regard has to be taken by the competent Authority imperatively and without any further delay.
11. In the result, I order these writ petitions directing the first respondent – Managing Director of the Kerala Water Authority to immediately take up Exts.P6 to P8 representations of the petitioner produced in W.P.(C) No.13676 of 2018 and Exts.P6 to P9 produced in W.P.(C) No.13630 of 2018 and to issue orders on the same, adverting specifically to the terms of circular No.GST/002/17, dated 10.08.2018, issued by the said Authority, as expeditiously as possible but not later than one month from the date of receipt of a copy of this judgment.
If the first respondent finds that the amounts are due to the petitioner, in terms of the directions in the afore-mentioned circular, then the said Authority shall ensur
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GST- REFUND- Constitution of Refund facilitation Cell in GST Facilitation Centers at District and State Head Quarters
26-CT-2697/2018 C1 Dated:- 7-6-2018 Kerala SGST
GST – States
PROCEEDINGS OF THE Prl SECRETARY & COMMISSIONER,
STATE GST DEPARTMENT, THIRUVANANTHAPURAM
(Present: Dr. Rajan N Khobragade IAS)
Sub:- GST- REFUND- Constitution of Refund facilitation Cell in GST Facilitation Centers at District and State Head Quarters- reg:-
Goods and Service Tax is launched on 1st July 2017. The law envisaged prompt refund mechanism. GSTN is developing online processing of refund application mechanism. Till complete online system is operational, manual system is operationalized.
GST being a major tax reform in indirect taxation syste
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under District Deputy Commissioner.
II. The district Deputy Commissioner shall identify officers in the rank of State Tax Officer / State Tax Inspector to function in the Cell. (Ensure adequate number of officers in major districts where refund cases are more)
III. It shall be embedded in the district GST Facilitation Centres (Tax Corners).
2. As a corollary, a State Refund Facilitation Cell shall be formed at the State head quarters to assist the District Refund Cell and for clarification on any matter which are required from the Commissionerate.
3. Sri. Mansur M I Asst. Commissioner (Internal Audit) and Sri.B.S. Haridas, Asst. Commissioner, O/o CST are nominated in the State Refund Cell.
4. The functions of the District Refund Facil
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direction of Deputy Commissioner, facilitate meetings with exporters and other trade organizations.
VII. State RFC will coordinate with District RFCs and collate all the data in Form I, II and III properly.
VIII. State RFC shall put up a monthly report for reviewing and taking various actions.
5. The Deputy Commissioners shall give wide publicity to this arrangement to the trade organizations and officers.
The detailed guidelines in the form of Standard Operation Procedures (SOP) are uploaded in the website www.keralataxes.gov.in for reference and follow up.
A schematic process flow for the dealer seeking refund is attached for information.
Rajan
Prl Secretary & Commissioner
Circular, Trade Notice, Public Notice, Instructionsor O
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