Hon. Minister Piyush Goyal briefing media about the decisions taken in the GST Council Meet, at a press conference in New Delhi
GST
Dated:- 4-8-2018
d
News – Press release – PIB
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GST on Inter Branch Transaction
Query (Issue) Started By: – Sanjeev Sharma Dated:- 4-8-2018 Last Reply Date:- 6-8-2018 Goods and Services Tax – GST
Got 8 Replies
GST
A Delhi based Company is having a sales and marketing office in Mumbai. All goods ( which are exempted from GST) are sold to the customers directly from Delhi.
Mumbai office does not make any taxable supply and therefore not registered under GST.
Does Mumbai office is required to raise bill on Delhi Office for sales and marketing services provided and to charge GST.
Reply By YAGAY andSUN:
The Reply:
You may issue Bill of Supply in such transactions along with e-way bill.
Reply By Himansu Sekhar:
The Reply:
Mimbai office should take regn and receive the good
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plier is required to be registered in a state where he makes taxable supply of goods or services. Delhi office goods is exempt, but mumbai office service is taxable and thus aggregate turnover for taking registration shall also include value of exempt goods sold by Delhi office. Therefore mumbai office need to take registration as distinct person and charge igst to Delhi office. It will cover under s.no.2 of schedule II CGST Act, 2017.
Reply By KASTURI SETHI:
The Reply:
Well explained by Sh.Pawan Kumar, an expert.
Reply By Ganeshan Kalyani:
The Reply:
Mumbai office has to take registration. If it does not avail services that are covered under reverse charge notification then it can take ISD registration. By taking this registration mumb
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GST slabs may reduce to 3 in long-term: Sanjeev Sanyal
GST
Dated:- 4-8-2018
Kolkata, Aug 4 (PTI) In the long-term, Goods and Services Tax (GST) slabs may come down to three, in addition to the exempted category, Sanjeev Sanyal, Principal Economic Adviser to the Finance Ministry, today said.
The three slabs could be a low of 5 per cent, a central 15 per cent (merging 12 per cent and 18 per cent slabs that exist now) and a top rate of 25 per cent, he said here at an interactive session organised by the Bharat Chamber of Commerce.
"In the long-term, the GST rates might be squeezed to three as more and more simplification will be done," Sanyal said.
Presently, there are four GST slabs of 5, 12, 18 and 28 per cent, plu
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Restaurant services rationalized
By: – CA Akash Phophalia
Goods and Services Tax – GST
Dated:- 4-8-2018
Introduction
Supply of food or any other article for human consumption or any drink (other than alcoholic liquor for human consumption), where such supply is for cash, deferred payment or other valuable consideration has been classified as “supply of services” in entry 6(b) of Schedule II to the CGST Act 2017. The said service is further elaborated along with accommodation services in Notification No 11/2017-Central Tax (Rate) dated 28th June 2017 for proper classification and assignment of HSN/SAC codes to it. In the recent notification 13/2018-Central Tax (Rate) as issued on 26th July 2018 the said classification particularly in relation to restaurant services is redefined and this article aims to throw light on the impact of such change.
Amendment in the entry
Accommodation, food and beverage services are classified as serial no 7 to the Notification 11/2017 sup
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riff includes charges for all amenities provided in the unit of accommodation (given on rent for stay) like furniture, air conditioner, refrigerators or any other amenities, but without excluding any discount offered on the published charges for such unit.
Will there be any change in tax rate if the amount charged is less than declared tariff- Even if the amount charged actually is lesser than the declared tariff then also the said service shall fall in this classification only. To put it differently, even if the actual charges charged are lesser then the published charges, the declared tariff shall be equivalent to published charges.
How to calculate the limit of ₹ 7500/- The declared tariff needs to be seen for per room per day.
Can we consider the declared tariff on daily basis – The declared tariff for different days can be different and in that case the classification shall also be different for different days. If the declared tariff on one day is ₹ 7500/- then the
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ed tariff of the said special suite to an amount below ₹ 7500/-, the said services shall again be classified in the above stated amended entry.
Whether the checking of declared tariff is to be done assessee-wise -The above mentioned classification is applicable on premises. Thus if an institution is having accommodation facility in different premises and declared tariff in one premises is below ₹ 7500/- per room per day and the declared tariff in the second premises is ₹ 8000/- per room per day, then the said assessee has to classify services of different premises differently, that is to say, for the first premise the classification shall be as per the amended entry mentioned above and the second premises shall not be classified in the amended entry as mentioned above.
Condition attached
The important conditions attached to this entry is that the assessee engaged in providing services falling under this entry shall not be eligible to avail of the input tax credit o
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GST Charcha – Seizure Order of Goods: Appealable or Not?
By: – Bimal jain
Goods and Services Tax – GST
Dated:- 4-8-2018
GST Charcha – Seizure Order of Goods: Appealable or Not?
As seen recently after implementation of E-Way Bill, effectively from April 1, 2018, multiple cases of seizures of the goods/conveyances in transit by the department by way of Order passed under Section 129(1) of CGST Act, 2017 (“CGST Act”), has raised concerns as to whether the order of seizure of goods under Section 129(1) of CGST Act is appealable or not?
In this regard, various Writs have been filed before different High Courts across the Country and divergent views have been found with respect to the maintainability of the Writ petitions against the Order of seizure of goods.
This GST Charcha deciphers into relevant provisions of GST Law along with legal jurisprudence to determine whether the Order of seizure of goods by the Revenue is appealable or not under the provisions of the CGST Ac
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osecution under this Act; or
* an order passed under Section 80 (i.e. payment of tax and other amount in instalment)
Manifestly, while Section 107 of the CGST Act makes every decision or order passed under the GST Act to be appealable, whereas Section 121 ibid makes an exception thereto and states that certain orders, which are recognized in sub-sections (a) to (d) would not be appealable.
Allahabad High Court:
* M/s R K Overseas Vs. UOI & 3 Ors. Writ Tax No. 111 of 2018 (“R K Overseas case”) 2018 (2) TMI 1737 – ALLAHABAD HIGH COURT
A writ petition was filed by the assessee before the Hon'ble Allahabad High Court challenging seizure of goods. The Court held that a conjoint reading of both Sections 107 and 121(b) makes it imperative that the seizure of goods in transit or storage is specifically excluded from the purview of appeal and consequently non-appealable.
* Bharat Iron Store Vs. Union of India [ 2018 (4) TMI 1141 – ALLAHABAD HIGH COURT ]
The petitioner sought a writ of
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the assessee files an appeal within the next one week, the same shall be heard and decided in accordance with law by the Appellate Authority within a period of one month therefrom.
Calcutta High Court:
* Gati-Kintetsu Express (P.) Ltd. Vs. Assistant Commissioner of State Tax, Kharagpur [ 2018 (6) TMI 558 – CALCUTTA HIGH COURT ]
The case was whether the assessee had the locus standi to file a writ petition before the High Court against the Order of seizure of goods under Section 129(1) of CGST Act. The assessee relied on the judgment of the Allahabad High Court in R K Overseas case (supra) and pleaded that since the order of seizure has been classified as non-appealable under clause (b) of Section 121 of the Act, hence the need arose to file the writ petition before the High Court challenging the order of seizure of goods.
To this the Court explained that clause (b) of Section 121 is only confined to “seizure of or retention of books of accounts, register and other documents” and
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In Re: M/s. Monrovia Leasing and Finance Pvt. Ltd.
GST
2018 (10) TMI 1244 – AUTHORITY FOR ADVANCE RULING, MAHARASHTRA – 2018 (18) G. S. T. L. 489 (A. A. R. – GST)
AUTHORITY FOR ADVANCE RULING, MAHARASHTRA – AAR
Dated:- 4-8-2018
GST-ARA-20/2017-18/B-83
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 M/S Monrovia Leasing and Finance Pvt. Ltd., the applicant, seeking an advance ruling in respect of the following questions.
1. Whether the whole (Sheep/Goat) animal carcass in its natural shape in frozen state in different weight and size packed in LDPE bags without mentioning the weight and one or two such LDPE bags fu
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mean a reference to the same provision under the MGST Act. Further to the earlier, henceforth for the purposes of this Advance Ruling, a reference to such a similar provision under the CGST Act / MGST Act would be mentioned as being under the “GST Act”.
02. FACTS AND CONTENTION – AS PER THE APPLICANT-
1) M/S Monrovia Agro Foods is engaged in slaughtering & processing of Sheep / Goat meat and supplies these products to Army against tender.
2) Monrovia Agro Foods Supplies to Army Sheep / Goat meat in carcass form i.e. the whole animal carcass in its natural shape in frozen state. Naturally, the carcass would be in different weight & sizes. Further, there is no fixed quantity & size in which these carcasses are dispatched to Army. The said dispatches are made on the basis of the weight of the frozen carcass. Furthermore, the consideration is charged on the basis of weight. The packing and dispatch pattern is given below:-
Each frozen carcass is put in LDPE Bag (Primary Packing) whic
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meat respectively are provided below:
Schedule II
S.No.
Chapter/ Heading/ Sub-heading/ Tariff item
Description of Goods
4.
0204
Meat of sheep or goats, frozen and put up in unit containers
b. A reading of the above-mentioned entries in the above reproduced notification would reveal that if the items mentioned in Tariff Heading 0204 are put up in a 'unit container', it would be eligible to tax @ 12%.
c. Correspondingly, in exercise of the powers conferred by sub-section (1) of section 6 of the Integrated Goods and Service Tax Act, 2017, the Central Government via Notification No.2/2017-Integrated Tax (Rate) New Delhi dated 28.06.2017 has exempted inter-State supplies of goods from the whole of the integrated tax leviable thereon as under. Relevant extract is reproduced below;
Schedule
S.No.
Chapter/Heading/Sub-heading/Tariff item
Description of Goods
10.
0204
Meat of sheep or goats, [other than frozen and put up in unit containers]
A conjoint reading of the extracts o
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e any actionable claim or enforceable right in respect of such brand name has been foregone voluntarily], subject to conditions as in the ANNEXURE I]”;
b. Hence, net impact of the above amendment is as follows:-
i. Reduction in rate from 12% to 5% on the subject products.
ii. One additional condition for taxability is imposed i.e. product must be branded.
c. Correspondingly, in exercise of the powers conferred by sub-section (1) of section 6 of the Integrated Goods and Service Tax Act, 2017, the Central Government via Notification No.44/2017-Integrated Tax (Rate) New Delhi dated 14.11.2017 has exempted inter-State supplies of goods from the whole of the integrated tax leviable thereon as under. Relevant extract is reproduced below:
Schedule
S.No.
Chapter/Heading/Sub-heading / Tariff item Heading
Description of Goods
8.
0204
All goods, fresh or chilled
9.
0204
All goods (other than fresh or chilled) other than those put up in unit container and,-
(a) bearing a register
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half-carcasses of lamb, fresh or chilled
Nil
0204 22 00
– Other cuts with bone in
Nil
0204 23 00
– Boneless
Nil
0204 30 00
– Carcasses and half-carcasses of lamb, frozen – Other meat of sheep, frozen:
Nil
0204 41 00
– Carcasses and half-carcasses
Nil
0204 42 00
– Other cuts with bone in
Nil
0204 43 00
– Boneless
Nil
0204 50 00
– Meat of goats
Nil
1601 00 00
SAUSAGES AND SIMILAR PRODUCTS, OF MEAT, MEAT OFFAL OR BLOOD; FOOD PREPARATIONS BASED ON THESE PRODUCTS
6%
0104
LIVE SHEEP AND GOATS
0104 10
– Sheep:
0104 10 10
– Sheep including lamb for breeding purpose
0104 10 90
– 0104 10 90
0104 20 00
– Goats
(c) Details of benefit of notification of Central Excise if any availed – NA.
(6) (a) Classification of Service / Services as applicable
(b) Rate / Rates of Service Tax as applicable to services provided
Sr. No.
Classification of Services
Accounting Code
Rate of Tax
1.
Manpower Recruitment/ Suppl
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017 till 14th November, 2017
Schedule II of the Notification No 1/2017-lntegrated Tax (Rate) dated 28th June 2017 deals with the products which are subject to 12 % GST and entry No 4 which pertain to sheep/Goat meat respectively are provided below:
Schedule II
S.No.
Chapter/Heading/Sub-heading/ Tariff item
Description of Goods
4.
0204
Meat of sheep or goats, frozen and put up in unit containers
3. A reading of the above-mentioned entry in the above reproduced notification would reveal that if the items mentioned in Tariff Heading 0204 are put up in a 'unit container', it would be eligible to tax @12%.
4. Correspondingly, in exercise of the powers conferred by sub-section (1) of section 6 of the Integrated Goods and Service Tax Act, 2017, the Central Government via (b) Notification No.2/2017-lntegrated Tax (Rate) New Delhi dated 28.06.2017 has exempted, inter-State supplies of goods, from the whole of the integrated tax leviable thereon. Relevant extract is reproduc
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Tariff Heading 0204 would be eligible to tax @ 5% if are put up in a 'unit container' and bear a brand name.
7. Correspondingly, in exercise of the powers conferred by sub-section (1) of section 6 of the Integrated Goods and Service Tax Act, 2017, the Central Government via Notification No.44/2017-Integrated Tax (Rate) New Delhi dated 14.11.2017 has exempted, inter-State supplies of goods, from the whole of the integrated tax leviable thereon. Relevant extract is reproduced below:
Schedule
S.No.
Chapter/Heading/Sub-heading/Tariff item
Description of Goods
8.
0204
All goods, fresh or chilled
9.
0204
All goods (other than fresh or chilled) other than those put up in unit container and,-
(a) bearing a registered brand name; or
(b) bearing a brand name on which actionable claim or enforceable right in court of law is available [other than those where any actionable Claim or enforceable right in respect of such brand name has been foregone voluntarily], subject to conditions
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Sheep/ Goat meat to Army against tender does not qualify to be as unit container.
In support of above point of view, following submissions are being made for the kind consideration of the Honorable Advance Ruling Authority.
11. Unit Container, meaning-
11.1 Before adverting to the decided case laws and analysis of the term 'unit container', it is important to advert to the meaning of the term 'unit'. Merriam Webster Dictionary defines 'unit' as 'a determinate quantity (as of length, time, heat, or value) adopted as a standard of measurement such as an amount of work used in education in calculating student credits or an amount of a biologically active agent (such as a drug or antigen) required to produce a specific result. The Business Dictionary defines the term to mean a definitive or determinate quantity adopted as a standard of measurement and exchange. Therefore, where the term 'unit' is affixed to a container, it would mean a container containing a 'unit' of a particular com
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nder the old Central Excise Tariff, prepared/ preserved food put up in 'unit container' and ordinarily intended for sale were eligible for excise duty. Thus, there was a twin requirement viz. goods being put up in 'unit container' and secondly, they should have ordinarily been intended for sale.
11.6 The expression 'unit container' was not defined in the old Central Excise Tariff but instructions in this regard were issued by Central Excise Board's letter M.F (D.R.I.) No. B/ 5/1/69-CX-I, dated 3-4-1969, clarifying the meaning of the term 'unit container' as under:
“Meaning of unit Containers. The expression 'unit container' used in Tariff Item 1B means a container in which prepared or preserved food is intended to be sold by the manufacturer. It may be a small container like tin, can, box, jar, bottle or bag in which the product is sold by retail, or it may be a large container like drum, barrel or canister in which the product is packed for sale to other manufacturers or dealers. In
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ned quantity of the contents. To pack half a litre of fruit syrup in a bottle which can hold one litre would not only be wasteful but would also subject the contents unnecessary movement, perhaps with a loss of quality. Further, it would arouse doubts in the customer that he is being cheated. It can therefore be very well understood that no intelligent manufacturer would pack prepared or preserved foods (or indeed any similar product of common consumer use) in a container which is not full or practically so. Nor would a prudent customer readily buy a product in a container which does not appear to be full.
46. The above observations on the methods of marketing of common consumer products, do not require any special knowledge because they are a matter of common experience. The tariff item and the Finance Ministry's instructions are consistent with the general experience and practice as mentioned above. General experience would certainly show that prepared and preserved foods and the li
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the term 'unit'.
11.9 Under the new Central Excise Tariff Act, 1985 (which replaces the old Tariff) also, certain products cleared and manufactured and put up in a 'unit container' were eligible to excise duty. The term 'unit container' under the New Central Excise Tariff Act, 1985 was defined to mean as under:
“Container whether large or small (for examples, tin, can, box, jar, bottle, bag or carton, drum, barrel, or canister) designed to hold a pre-determined quantity or number.”
11.10 In the context of new Central Excise Tariff Act, 1985, in the case of Agro Foods Punjab Ltd. v. Collector of Central Excise, 1990 (49) E.LT. 404 = 1990 (3) TMI 194 – CEGAT, NEW DELHI, the tribunal observed as below:
“We hold that there is no difference either in the entry in between 1B of the old Tariff and new tariff 2001.10 or in the issue involved in both the cases. Following the ratio of the decision in the case of M/s. HPMC we hold that clearance in barrels does not amount to sale of the con
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nit container' or not so long as the said container contained a predetermined quantity.
11.14 In the context of HDPE and LDPE Bags, in the case of Surya Agro Oils Ltd. v. Commissioner of Central Excise, Indore, 2000 (116) E.L.T. 514 = 1999 (11) TMI 264 – CEGAT, NEW DELHI, the question arose whether an HDPE sack weighing 20 kg each of Pasta was a 'unit container' or not. It is pertinent to note that the HDPE sack weighing 20kgs comprised of 2 LDPE bags weighing each and after putting the said LDPE bags in the HDPE sack, the HDPE sack was stitched and subsequently it was cleared as an HDPE. The tribunal opined as under.
* There exists no logic to restrict the scope of the words 'unit container' only to small containers which must have predetermined capacity of 1/2/3/4/ kg., and carry full particulars of the product i.e., date of the manufacture, name of the manufacturer, trademark price, etc. If the intention of the legislature was to refer only to the small containers having predeter
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xample, tin, Can, box, jar, bottle, bag, or carton, drum, barrel, or canister) designed to hold a Predetermined quantity or number, which is indicated on such package.”
12. In view whereof the judicial principles evolved for determination of 'unit container' would hold good in the context of GST law as well. We are therefore summarizing the said principles as under: In order for a container to be categorized as a 'unit container' , the said container should be designed to hold a predetermined quantity and should be standardized i.e. it is standardized for a particular commodity like packages of 1kg, 100 ml, 200ml, etc.
(i) The words 'unit container' does not mean only small containers which must have predetermined capacity of 1/2/3/4/ kg., and carry full particulars of the product i.e., date of the manufacture, name of the manufacturer, trademark, price, etc. A big container designed to hold a pre-determined quantity of goods in bulk will also qualify as 'unit contained.
(ii) That
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her a container is a 'unit container' or not, we are of the view that the fact that the LDPE bags are not sealed would militate against any contention raised by the department that the said container are designed to hold a pre-determined quantity.
(ii) That in Surya Agro Oils Ltd. v. Commissioner of Central Excise, Indore, 2000 (116) E.LT. 514 = 1999 (11) TMI 264 – CEGAT, NEW DELHI, case wherein HDPE sack weighing 20 kg each of Pasta comprising of 2 LDPE bags weighing 10 kgs each was held to be a unit container will not be applicable to the present case in as much as in the said case the HDPE bag contained LDPE bags of 10Kgs each, which were standardized whereas in the present case there is no fixed quantity of mutton in the LDPE bags, it can weigh 7 kg or 6.5kg i.e. the said HDPE bags cannot be said to be holding a predetermined uniform quantity. In a nutshell, the bags in the present case do not hold a pre-determined quantity of meat. It is clear from the above factual matrix that
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view that the product supplied by Monrovia Agro Foods shall not qualify as unit container.
15. Applicant submitting the two advance ruling by Hon. ARA Of Haryana State which is in support of our stand and interpretation that the product We are supplying should not qualify as packed in unit container, should not be subject to tax.
15. Applicant's point of view on specific queries raised for Advance Ruling:-
i. Whether the packaging being used for despatch to Army shall qualify as “Unit Container” under the GST law?
Point of view:-ln light of the discussion contained in Para 11.1 to Para 11.12, we are of the view that despatches made by the supplier in LDPE/ H DPE bags i.e. both primary as well as secondary packing do not qualify as product packed in unit container.
ii. Whether the product, i.e. sheep/Goat meat in frozen State and packed as mentioned in the facts stated above sheet shall be liable to be taxed under GST or would it be treated as exempted?
Point of view: -In lig
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xample, tin, can, box, jar, bottle, bag, or carton, drum, barrel, or canister) designed to hold a predetermined quantity or number, which is indicated on such package.
Thus it can be seen that the above referred Notifications has clearly brought out what a “unit container” means. If the submission made by the tax payer is taken on face value that they are engaged in supply of whole (Sheep/Goat) animal carcass in its natural shape in frozen state in different weight and size packed in LDPE bags without mentioning the weight and one or two such LDPE bags further packed in HDPE bags without mentioning the weight, the goods supplied by the tax payer cannot be construed as a product put up in “unit container” as the package i.e. LOPE bags and HDPE bags even though be designed to hold a pre-determined quantity/weight, the same is not indicated on such packages nor the same are numbered. Further on being asked to clarify the weighment procedure adopted by the taxpayer, the taxpayer has subm
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28th June 2017 up to 14th November 2017 and thereafter as per entry no. 1 of schedule I of the Notification No. 43/2017-lntegrated Tax (Rate) dated 14th November 2017 or fall under exemption list as per entry no 10 of Notification No. 2/2017-lntegrated Tax (Rate) New Delhi dated 28th June 2017 up to 14th November 2017 and thereafter as per entry no. 9 of the Notification No. 44/ 2017-lntegrated Tax (Rate) dated 14th November 2017.
Comments: As per the submissions made by the tax payer it appears that they are supplying Sheep, Goat Meat in carcass form i.e. the whole animal in its natural shape in frozen state of different weights. The said products are packed in LDPE bags and then one or two LDPE bags are packed in one HDPE bag. As the packages differ in weight and quantity, no weight is mentioned on the LDPE or HDPE bags and invoicing is done on the entire weight of the lot. It appears that the product involved i.e. Frozen Sheep/Goat Meat is duly covered under HS Code 02043000 and Ch
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pter/Heading/Sub-heading/Tariff item
Description of Goods
10
0204
Meat of sheep or goats, fresh, chilled or frozen [other than frozen and put up in unit container]
Similarly from 15.11.2017 the said product appears to fall under Entry No: 9 of Notification No: 44/2017-Integrated Tax (Rate) dated 14.11.2017 as the product is not put in unit containers and not bears a registered brand name.
As per the Oral directions issued by the Hon'ble Advance Ruling Authority during the course of hearing held on to verify and report whether the applicant M/S Monrovia Leasing Finance Pvt. Ltd was using any brand name on the goods on which the Advance Ruling is sought for, this office had deputed the Jurisdictional Range Superintendent Shri Rajesh Surendran, to physically verify the goods and report. Based on the verification report of the deputed officer, the following submission is placed before the Hon'ble Authority for the perusal.
a) The whole (Sheep/Goat) animal carcass in its natural sha
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was also noticed that the Tax payer is also involved in the manufacture of Ready to cook Chicken products, Tray Pack Frozen Pre Cut Chicken Products and Ready to eat Canned Meat Products. The said goods are marketed and sold under a Brand “Punjab Maratha” in retail packs on which the tax payer is paying appropriate GST. The brochure, the packing and the stickers used for the packing are enclosed for ready reference.
04. HEARING
The case was taken up for preliminary hearing on DT. 27.06.2018, with respect to admission or rejection of the application when Sh. Ashok kumar Mishra, Advocate along with Sh. Surender Singh, Director appeared and made contentions as per details in their ARA. The jurisdictional officer, Sh. Rajesh Surendran, Suptt. Division- Baramati Pune – II Central GST Commissionerate appeared and made written submissions.
The application was admitted and final Hearing was held on 24.07.2018, Sh. Ashok kumar Mishra, Advocate along with Sh. Surender Singh, Director appear
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whole animal carcass in frozen state. Applicant further submit that the carcass would be in different weight and sizes and there is no fix quantity and size in which these carcasses are dispatched to the Army. The said dispatches are made on the basis of weight of frozen carcass. Furthermore the consideration is charged on the basis of weight. As regard packaging and dispatch pattern it is submitted that each frozen carcass is put in LDPE Bag (Primary Packing) which is not sealed & no weight is mentioned on such LDPE Bag. Thereafter, generally one or two of such LDPE Bags are put in HDPE Bag (Secondary Packing) and no weight is mentioned on such HDPE Bag too. Hence, the invoicing is done for entire weight of the lot and no mention of weight of each bag of the lot.
The notification no.1/2017 and 2/2017 – Integrated Tax (Rate) both dated 28th June 2017and further amended by notification no 43/2017 and 44/2017- Integrated Tax (Rate) both dated 14th November, 2017 are the central point of
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packed in LDPE bags without mentioning the weight and one or two such bags further packed in HDPE bags being supplied to Army against tender shall qualify as product put up in 'unit container'. It was further held that impugned product will be covered by schedule entry 4 of the notification of 1/2017 – Integrated Tax (Rate) during the period 01/07/2017 to 13/11/2017 and schedule I of the said notification for the period from 14th November, 2017 onwards.
Accordingly they were requested to state, similarities or as the case may be dissimilarities between the facts of this ruling and the present ARA application. Applicant has given comparative analysis of facts which are not denied by the jurisdictional officer.
Comparative analysis of facts between M/S. Ahmednagar District Goat Rearing and Processing Co-operative Federation Ltd. and the applicant are as below:
Facts
Ahmednagar Goat Federation
Monrovia Agro Foods
Product and HSN Code
Frozen Goat/ Sheep-0204
Frozen Goat/ Sheep-020
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is no mentioning of brand name also.
Requirement of Army for mentioning of weight/number
During the intervening period (i.e. 2017-18) packing conditions mentioned in Terms and Conditions (i.e. RFP) given by Army required mentioning of actual weight on the Secondary packing.
In the current tender against which supplies are being made presently (From April 2018) there is no requirement from Army side regarding mentioning of weight/ number on any packing material.
It would be important to mention here that a specific letter received from Army that there is no requirement of mentioning the weight/ number of carcass packed already provided while filing written submission.
Billing Pattern
A list showing bag wise weight against each bill was being provided to Army as attachment with each invoices.
There is no such list is either made or provided to Army the total weight is mentioned on the invoice and it is not even possible to figure it out the total number of bags in respective truck
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rom 01/07/ 2017 till present and going forward whereas in case of appellant it is from 01/04/2018 till present and going forward. The product supplied in both the case is same i.e. frozen goats and sheep carcass. However in respect of packaging of the product supplied which is a crucial aspect with respect to tax liability being there or not, we find that there is a part difference. In case of applicant there is no printing or marking of weight or number of carcass packed in such bags and there is no mentioning of brand name. Further as per the tender pursuant to which impugned supplies are to take place there is no requirement from Army regarding mentioning weight or number on the packaging material. Whereas in case of M/S. Ahmednagar District Goat Rearing and Processing Co-operative Federation Ltd packaging conditions mentioned in Terms and Conditions “RFP”given by Army required mentioning of actual weight on the secondary packaging. In this regard the applicant in the present case h
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t container' has to satisfy follow conditions simultaneously-
1. Package may be large or small
2. Packaging designed to hold predetermined quantity or number
3. Such predetermined quantity or number is indicated on such package.
From the facts submitted by the applicant and as verified by the jurisdictional officer during his factory visit, we find that each package is containing different weight and no weight/number is mentioned on packages. In view of above we are convinced that impugned supply would not satisfy the requirement of the definition of 'unit container 'as found in both the notifications sited supra. In view of this, we hold that the supply of whole sheep/ goat carcass in frozen state packed in LDPE bag and further packed in HDPE bag which do not indicate any information related to weight /number of the carcass packed in such bags would tantamount to being as a product not put up in a unit container for the purpose of notification 1/2017and 2/2017- Integrated Tax (Rat
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p in unit containers
1-2017 TO 13-11-2017
12%
Deleted w.e.f 14.11.2017
1 (Schedule I)
0202, 0203, 0204, 0205, 0206, 0207, 0208, 0209, 0210
All goods [other than fresh or chilled], and put up in unit container and, –
(a) bearing a registered brand name; or
(b) bearing a brand name on which an actionable claim or enforceable right in a court of law is available (other than those where any actionable claim or enforceable right in respect of such brand name has been foregone voluntarily], subject to the conditions as in the ANNEXURE]
14-11-2017 Onwards
5%
Notification no. 2/2017 Integrated Tax (Rate) dated 28th June 2017
10
0204
Meat of' sheep or goats, fresh, chilled or frozen [other than frozen and put up in unit container]
1-7-2017 TO 13-11-2017
NIL
Deleted w.e.f 14.11.2017
9
0202, 0203,
0204, 0205,
0206, 0207,
0208, 0209,
0210
All goods [other than fresh or chilled], and put up in unit container and, –
(a) bearing a r
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ed supply is covered by notification 2/2017 – Integrated Tax (Rate) dated 28th June, 2017 as amended by serial 9 Of the notification no. 44/2017 – Integrated Tax (Rate) dated 14th November, 2017 and would be exempt from whole of GST as per this Notification.
06. In view of the deliberations as held hereinabove, we pass the order as follows:
ORDER
(Under clause (xviii) Of section 20 Of the Integrated Goods and Services Tax Act, 2017 read with section 98 of the Central Goods and Services Tax Act, 2017 and the Maharashtra Goods and Services Tax Act, 2017)
NO.GST-ARA-20/2017-18/B-83
Mumbai, dt. 04/08/2018
For reasons as discussed in the body of the order, the questions are answered thus –
Q.1 Whether the whole (Sheep/Goat) animal carcass in its natural shape in frozen state in different weight and size packed in LDPE bags without mentioning the weight and one or two such LDPE bags further packed in HDPE bags being supplied to Army by applicant against tender shall qualify a
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Exemption/ concession provided for Mandap Keepers/Function Halls letting out the premises on free of cost
Query (Issue) Started By: – Ravikumar Doddi Dated:- 3-8-2018 Last Reply Date:- 5-8-2018 Goods and Services Tax – GST
Got 5 Replies
GST
Dear sir,
Applicant is mandap keeper/ function halls generally they will charge GST on regular basis but some times they will let out free of cost for the religious and social functions is there any exemption of GST on free let out or any concession in GST given to them.kindly support with appropriate section in CGST Act or circular, they are not registered under Section 12AA of Income tax Act (Charitable Institution.
Reply By Ganeshan Kalyani:
The Reply:
GST is applicable on the value of
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Goods & Services Tax collections
GST
Dated:- 3-8-2018
The Government maintains month-wise data of Goods & Services Tax collection. The details of collections from July, 2017 to June 2018 are at Annexure.
The accounting of GST collections in the Central Government is done on the cash basis. Accordingly, the accounting with regard to CGST, IGST and Compensation Cess is done upon the happening of actual event of collections, refunds and settlements. The details are at Annexure.
The Government maintains the data of IGST collected and apportioned. The month-wise details are at Annexure.
Apart from the regular monthly IGST settlement, the Government has done provisional settlement of un-apportioned IGST lying with the Centre of a
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23836
42694
48
24027
18619
7103
7103
49557
December
13928
86
10348
24190
42765
805
24835
17125
7922
23
7898
49213
January
14874
287
8583
23170
45338
2247
23651
19441
8070
21
8049
50660
February
14763
511
28827
43079
42382
2325
59806
-19749
8196
23
8172
31502
March
16266
1015
12140
27390
46326
7294
25564
13468
7520
42
7478
48336
Total
118876
1899
86275
203253
387356
12794
205938
168623
62614
109
62505
434381
GST Collection (FY 2018-19)
CGST
IGST
Comp. Cess
Total Net
Month
Gross
Refund
Settlement
Net
Gross
Refund
Settlement
Net
Gross
Refund
Net
(+)
(-)
April
18653
392
13841
32102
50548
1852
28395
20301
8554
16
8538
6094
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Amendments to the Goods and Services Tax (GST) Laws
GST
Dated:- 3-8-2018
The Government has proposed around 46 Amendments to the Goods and Services Tax (GST) laws viz., the Central Goods and Services Tax Act, 2017 along with the respective State Goods and Services Tax Act, 2017, Integrated Goods and Services Tax Act, 2017, Union Territory Goods and Services Tax Act, 2017 and GST (Compensation of States) Act, 2017. The details are placed on the Government's website www.mygov.in at t
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E-way Bill System
GST
Dated:- 3-8-2018
The E-way Bill System has been introduced nation-wide for inter-State movement of goods with effect from 1st April, 2018 while the States were given the option to choose any date till 3rd June, 2018 for the introduction of the E-way bill system for intra-State supplies. Consequently, all the States have notified the E-way bill system for intra-State supplies, the last being the National Capital Territory of Delhi which introduced it with effect from 16th June, 2018. The objectives of E-way bill system are as below:
a. single and unified E-way bill for inter-State and intra-State movement of goods for the whole country in self-service mode,
b. enabling paperless and fully online system t
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ion on 1st February, 2018. A total of 4.5 lakhs E-way bills could be generated that day.
The Union Government deferred the introduction of the E-way Bill System till 1st April, 2018. Further, the Government took various corrective steps in this regard viz., new Information Technology (IT) infrastructure including high end servers were installed to handle the increased load on the system. The upgraded system is capable of handling a peak load of 75 lakh E-way bills per day. As a result, the E-way bill system is now being successfully implemented since 1st April, 2018 across the country. As on 30th July, 2018, a total of 7,58,75,207 E-way bills for intra-State movement and 7,81,51,096 E-way bills for Inter-State movement of goods have been g
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Revenue from the Goods and Services Tax (GST) touched 7.19 lakh crore between August, 2017 and March, 2018
GST
Dated:- 3-8-2018
The revenue from the Goods and Services Tax (GST) touched ₹ 7.19 lakh crore between August, 2017 and March, 2018. The Monthly Revenue Average from GST was at ₹ 89,885 crore for the said period.
The details of month-wise Goods & Services tax collection are as follows:
Table
Figures in Rs Crores
MONTH
Total collection
Aug-17
95,633
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GST – Concept & Status as on 1st August, 2018
GST
Dated:- 3-8-2018
GOODS AND SERVICE TAX (GST)
CONCEPT & STATUS
CENTRAL BOARD OF INDIRECT TAXES AND CUSTOMS (CBIC)
DEPARTMENT OF REVENUE
MINISTRY OF FINANCE
GOVERNMENT OF INDIA
AS ON 1st AUGUST, 2018
The uniform system of taxation, which, with a few exceptions of no great consequence, takes place in all the different parts of the United Kingdom of Great Britain, leaves the interior commerce of the country, the inland and coasting trade, almost entirely free. The inland trade is almost perfectly free, and the greater part of goods may be carried from one end of the kingdom to the other, without requiring any permit or let-pass, without being subject to question, visit, or examination from the revenue officers. ……This freedom of interior commerce, the effect of uniformity of the system of taxation, is perhaps one of the principal causes of the prosperity of Great Britain; every great country being necessarily
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T TAXATION IN INDIA BEFORE GST :
2.1 Article 265 of the Constitution of India provides that no tax shall be levied or collected except by authority of law. As per Article 246 of the Constitution, Parliament has exclusive powers to make laws in respect of matters given in Union List (List I of the Seventh Schedule) and State Government has the exclusive jurisdiction to legislate on the matters containing in State List (List II of the Seventh Schedule). In respect of the matters contained in Concurrent List (List III of the Seventh Schedule), both the Central Government and State Governments have concurrent powers to legislate.
2.2 Before advent of GST, the most important sources of indirect tax revenue for the Union were customs duty (entry 83 of Union List), central excise duty (entry 84 of Union List), and service tax (entry 97 of Union List). Although entry 92C was inserted in the Union List of the Seventh Schedule of the Constitution by the Constitution (Eighty-eighth Amend
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ame was levied by the Union.
HISTORICAL EVOLUTION OF INDIRECT TAXATION IN POSTINDEPENDENCE INDIA TILL GST:
3.1 In post-Independence period, central excise duty was levied on a few commodities which were in the nature of raw materials and intermediate inputs, and consumer goods were outside the net by and large. The first set of reform was suggested by the Taxation Enquiry Commission (1953-54) under the chairmanship of Dr. John Matthai. The Commission recommended that sales tax should be used specifically by the States as a source of revenue with Union governments' intervention allowed generally only in case of inter-State sales. It also recommended levy of a tax on inter-State sales subject to a ceiling of 1%, which the States would administer and also retain the revenue.
3.2 The power to levy tax on sale and purchase of goods in the course of interState trade and commerce was assigned to the Union by the Constitution (Sixth Amendment) Act, 1956. By mid-1970s, central exc
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VAT was achieved by 1996-97.
3.4 The next wave of reform in indirect tax sphere came with the New Economic Policy of 1991. The Tax Reforms Committee under the chairmanship of Prof. Raja J Chelliah was appointed in 1991. This Committee recommended broadening of the tax base by taxing services and pruning exemptions, consolidation and lowering of rates, extension of MODVAT on all inputs including capital goods. It suggested that reform of tax structure must have to be accompanied by a reform of tax administration, if complete benefits were to be derived from the tax reforms. Many of the recommendations of the Chelliah Committee were implemented. In 1999-2000, tax rates were merged in three rates, with additional rates on a few luxury goods. In 2000-01, three rates were merged into one rate called Central Value Added Tax (CENVAT). A few commodities were subjected to special excise duty.
3.5 Taxation of services by the Union was introduced in 1994 bringing in its ambit only t
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erent rates of sales tax on different commodities in different States. Rates of sales tax were more than ten in some States and these varied for the same commodity in different States. Inter-state sales were subjected to levy of Central Sales Tax. As this tax was appropriated by the exporting State credit was not allowed by the dealer in the importing State. This resulted into exportation of tax from richer to poorer states and also cascading of taxes. Interestingly, States had power of taxation over services from the very beginning. States levied tax on advertisements, luxuries, entertainments, amusements, betting and gambling.
3.7 A report, titled “Reform of Domestic Trade Taxes in India”, on reforming indirect taxes, especially State sales tax, by National Institute of Public Finance and Policy under the leadership of Dr. Amaresh Bagchi, was prepared in 1994. This Report prepared the ground for implementation of VAT in States. Some of the key recommendations were; replacing s
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gn of VAT which was later made the Empowered Committee of State Finance Ministers (EC). Haryana was the first State to implement VAT, in 2003. In 2005, VAT was implemented in most of the states. Uttar Pradesh was the last State to implement VAT, from 1st January, 2008.
INTERNATIONAL PERSPECTIVES ON GST / VAT:
4.1 VAT and GST are used inter-changeably as the latter denotes comprehensiveness of VAT by coverage of goods and services. France was the first country to implement VAT, in 1954. Presently, more than 160 countries have implemented GST / VAT in some form or the other. The most popular form of VAT is where taxes paid on inputs are allowed to be adjusted in the liability at the output. The VAT or GST regime in practice varies from one country to another in terms of its technical aspects like 'definition of supply', 'extent of coverage of goods and services', 'treatment of exemptions and zero rating' etc. However, at a broader level, it has one common principle, it is a destinatio
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ith unique model of taxation in which certain provinces have joined federal GST and others have not. Provinces which administer their taxes separately are called 'non- participating provinces', whereas provinces which have teamed up with the Federal Government for tax administration are called 'participating provinces'.
4.3 The rate of GST varies across countries. While Malaysia has a lower rate of 6% (Malaysia though scrapped GST in 2018 due to popular uproar against it), Hungary has one of the highest rate of 27%. Australia levies GST at the rate of 10% whereas Canada has multiple rate slabs. The average rate of VAT across the EU is around 19.5%.
NEED FOR GST IN INDIA:
5.1 The introduction of CENVAT removed to a great extent cascading burden by expanding the coverage of credit for all inputs, including capital goods. CENVAT scheme later also allowed credit of services and the basket of inputs, capital goods and input services could be use
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T was another source of distortion in terms of its cascading nature. It was also against one of the basic principles of consumption taxes that tax should accrue to the jurisdiction where consumption takes place. Despite remarkable harmonization in VAT regimes under the auspices of the EC, the national market was fragmented with too many obstacles in free movement of goods necessitated by procedural requirement under VAT and CST.
5.4 In the constitutional scheme, taxation powers on goods was with Central Government but it was limited upto the stage of manufacture and production while States have powers to tax sale and purchase of goods. Centre had powers to tax services and States also had powers to tax certain services specified in clause (29A) of Article 366 of the Constitution. This sort of division of taxing powers created a grey zone which led to legal disputes. Determination of what constitutes a goods or service is difficult because in modern complex system of
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es with complete set off in all stages of making of a product.
6.2 An announcement was made by the then Union Finance Minister in Budget (2007-08) to the effect that GST would be introduced with effect from April 1, 2010 and that the EC, on his request, would work with the Central Government to prepare a road map for introduction of GST in India. After this announcement, the EC decided to set up a Joint Working Group in May 10, 2007, with the then Adviser to the Union Finance Minister and Member-Secretary of the Empowered Committee as its Co-conveners and four Joint Secretaries of the Department of Revenue of Union Finance Ministry and all Finance Secretaries of the States as its members. This Joint Working Group got itself divided into three Sub-Groups and had several rounds of internal discussions as well as interaction with experts and representatives of Chambers of Commerce & Industry. On the basis of these discussions and interaction, the Sub-Groups submit
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of Trade Taxes of the States would be set up to consider these comments, and submit their views. These views were submitted and were accepted in principle by the EC (January 21, 2009). Based on discussions within the EC and between the EC and the Central Government, the EC released its First Discussion Paper (FDP) on GST in November, 2009. This spelled out the features of the proposed GST and has formed the basis for discussion between the Centre and the States.
CHALLENGES IN DESIGNING GST:
7.1 In the discussion that preceded amendment in the Constitution for GST, there were a number of thorny issues that required resolution and agreement between Central Government and State Governments. Implementing a tax reform as vast as GST in a diverse country like India required the reconciliation of interests of various States with that of the Centre. Some of the challenging issues, addressed in the run up to GST, were the following:
7.2 Origin-based versus Destination-based taxation: GST i
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their jurisdiction would not contribute to the tax revenues of the exporting state. This view was missing the fact that any value addition in a jurisdiction necessarily means extra income in the hands of the residents of that jurisdiction. Spending of this income on consumer goods expands the sales tax base of the producing states and thereby contributes to their revenues. In fact, to the extent that consumer expenditures are dependent on the level of income of the residents of a State, it is the producing States that stand to gain the most in additional sales tax revenues (even under the destination basis of consumption taxes) from increased export output.
7.3 Rate Structure and Compensation: There was uncertainty about gains in revenue after implementation of GST. Though attempts were made to estimate a revenue neutral rate, nonetheless it remains an estimate only. It was difficult to estimate accurately as to how much the States will gain from tax on services and how much th
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d). The lower rates (to be applied to certain goods consumed by the poor) should be 12%. Further, the sin or demerit rates (to be applied on luxury cars, aerated beverages, pan masala, and tobacco) should be 40%.
7.4 Dispute Settlement: A harmonized system of taxation necessarily required that all stakeholders stick to the decisions taken by the supreme body, which was later constituted as the Goods and Services Tax Council (the Council). However, the possibility of departure from the recommendations of such body cannot be completely ruled out. Any departure would definitely affect other stakeholders and in such circumstances there must be a statutory body to which affected parties may approach for dispute resolution. The nature of such dispute resolution body was a bone of contention. Under the Constitution (One Hundred Fifteenth Amendment) Bill, 2011, a Goods and Services Tax Dispute Settlement Authority was to be constituted for this purpose. This body was judicial in n
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122nd Amendment Bill, only alcoholic liquor for human consumption was kept outside GST and above mentioned five petroleum products were proposed to be brought under GST from a date to be recommended by the Council. The Central Government has also retained its power to tax tobacco and tobacco products, though these are also under GST. Thus, to ensure smooth transition and provide fiscal buffer to States, it was agreed to keep alcohol completely out of the ambit of GST.
CONSTITUTIONAL AMENDMENT:
8.1 As explained above, unification of Central VAT and State VAT was possible in form of a dual levy under the constitutional scheme. Power of taxation is assigned to either Union or States subject-wise under Schedule VII of the Constitution. While the Centre is empowered to tax goods upto the production or manufacturing stage, the States have the power to tax goods at distribution stage. The Union can tax services using residuary powers but States could not. Under a unified Goods and Services
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2014 was introduced in the 16th Lok Sabha on 19th December, 2014. The Constitution Amendment Bill was passed by the Lok Sabha in May, 2015. The Bill was referred to the Select Committee of Rajya Sabha on 12th May, 2015. The Select Committee submitted its Report on the Bill on 22nd July, 2015. The Bill with certain amendments was finally passed in the Rajya Sabha and thereafter by Lok Sabha in August, 2016. Further the bill was ratified by required number of States and received assent of the President on 8th September, 2016 and has since been enacted as Constitution (101st Amendment) Act, 2016 w.e.f. 16th September, 2016.
8.4 The important changes introduced in the Constitution by the 101st Amendment Act are the following:
* Insertion of new article 246A which makes enabling provisions for the Union and States with respect to the GST legislation. It further specifies that Parliament has exclusive power to make laws with respect to GST on inter-State supplies.
* Article
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cts power of the Parliament to levy surcharge under GST. In effect, surcharge cannot be imposed on goods and services which are subject to tax under Article 246A.
* Article 279A has been inserted to provide for the constitution and mandate of GST Council.
* Article 366 has been amended to exclude alcoholic liquor for human consumption from the ambit of GST, and services have been defined.
* Article 368 has been amended to provide for a special procedure which requires the ratification of the Bill by the legislatures of not less than one half of the States in addition to the method of voting provided for amendment of the Constitution. Thus, any modification in GST Council shall also require the ratification by the legislatures of one half of the States.
* Entries in List I and List II have been either substituted or omitted to restrict power to tax goods or services specified in these Lists or to take away powers to tax goods and services which have been subsumed in GST.
* Par
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local bodies which may be subsumed under GST;
* the goods and services that may be subjected to or exempted from the GST;
* model GST laws, principles of levy, apportionment of IGST and the principles that govern the place of supply;
* the threshold limit of turnover below which the goods and services may be exempted from GST;
* the rates including floor rates with bands of GST;
* any special rate or rates for a specified period to raise additional resources during any natural calamity or disaster;
* special provision with respect to the North- East States, J&K, Himachal Pradesh and Uttarakhand; and
* any other matter relating to the GST, as the Council may decide.
9.2 The Council shall recommend the date on which the goods and services tax be levied on petroleum crude, high speed diesel, motor spirit (commonly known as petrol), natural gas and aviation turbine fuel. While discharging the functions conferred by this article, the Goods and Services Tax Council shall be gu
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atter. The following major recommendations have been made by the Council:
(i) The threshold exemption limit would be Rs. 20 lakh. For special category States (except J&K) enumerated in article 279A of the Constitution, threshold exemption limit has been fixed at Rs. 10 lakh.
(ii) Composition threshold shall be Rs. 1 crore. As decided in the 23rd meeting of the Council, this limit shall be raised to Rs. 1.5 crore after necessary amendments in the Act. Composition scheme shall not be available to interState suppliers, service providers (except restaurant service) and specified category of manufacturers. For special category States (except J&K and Uttarakhand) enumerated in article 279A of the Constitution, threshold exemption limit has been fixed at Rs. 75 lakh.
(iii) Existing tax incentive schemes of Central or State governments may be continued by respective government by way of reimbursement through budgetary route. The schemes, in the present form, would not cont
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; Eighteen rules on composition, registration, input tax credit, invoice, determination of value of supply, accounts and records, returns, payment, refund, assessment and audit, advance ruling, appeals and revision, transitional provisions, anti-profiteering, E-way Bill, inspection, search and seizure, demands and recovery and offences and penalties have been recommended.
(x) The following classes of taxpayers shall be exempted from obtaining registration:
o Suppliers of services, having turnover upto Rs. 20 lakhs, making inter State supplies;
o Suppliers of services, having turnover upto Rs. 20 lakhs, making supplies through e-commerce platforms.
(xi) The reverse charge mechanism under sub-section (4) of section 9 of the CGST Act, 2017 and under sub-section (4) of section 5 of the IGST Act, 2017 has been suspended till 30.09.2019.
(xii) There shall be no requirement on payment of tax on advance received for supply of goods by all taxpay
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2017 onwards, the amount of late fee for late filing of GSTR-3B payable by a registered person is as follows:
o whose tax liability for that month was 'NIL' will be Rs. 20/- per day instead of Rs. 200/- per day;
o whose tax liability for that month was not 'NIL' will be Rs. 50/- per day instead of Rs. 200/- per day.
(xxi) Facility has been introduced for manual filing of refund application.
(xxii) Supply of services to Nepal and Bhutan shall be exempted from GST even if payment has not been received in foreign convertible currency – such suppliers shall be eligible for input tax credit.
(xxiii) Centralized UIN shall be issued to every Foreign Diplomatic Mission / UN Organization by the Central Government.
(xxiv) Rate of interest on delayed payments and delayed refund has been recommended.
(xxv) Migration window would be opened once more time till 31.08.2018.
9.5 In its 28th meeting held in New Delhi on 21.07.2018, the GST Council rec
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nbsp; Meghalaya, Sikkim and Uttarakhand to be increased to Rs. 20 Lakhs from Rs. 10 Lakhs.
(v) Taxpayers may opt for multiple registrations within a State/Union territory in respect of multiple places of business located within the same State/Union territory.
(vi) Mandatory registration is required for only those e-commerce operators who are required to collect tax at source.
(vii) Registration to remain temporarily suspended while cancellation of registration is under process, so that the taxpayer is relieved of continued compliance under the law.
(viii) The following transactions to be treated as no supply (no tax payable) under Schedule III:
(a) Supply of goods from a place in the non-taxable territory to another place in the non-taxable territory without such goods entering into India;
(b) Supply of warehoused goods to any person before clearance for home consumption; and
(c) Supply of goods in
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ssioner to be empowered to extend the time limit for return of inputs and capital sent on job work, upto a period of one year and two years, respectively.
(xiii) Supply of services to qualify as exports, even if payment is received in Indian Rupees, where permitted by the RBI.
(xiv) Place of supply in case of job work of any treatment or process done on goods temporarily imported into India and then exported without putting them to any other use in India, to be outside India.
(xv) Recovery can be made from distinct persons, even if present in different State/Union territories.
(xvi) The order of cross-utilisation of input tax credit is being rationalized.
These amendments will now be placed before the Parliament and the legislature of State and Union territories with legislatures for carrying out the amendments in the respective GST Acts.
9.6 GST Council in its 28th meeting held on 21.07.2018 in New Delhi, also approved the new return formats and ass
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is profile.
(v) NIL return filers (no purchase and no sale) shall be given facility to file return by sending SMS.
(vi) There shall be quarterly filing of return for the small taxpayers having turnover below Rs. 5 Cr as an optional facility. Quarterly return shall be similar to main return with monthly payment facility but for two kinds of registered persons – small traders making only B2C supply or making B2B + B2C supply. For such taxpayers, simplified returns have been designed called Sahaj and Sugam. In these returns details of information required to be filled is lesser than that in the regular return.
(vii) The new return design provides facility for amendment of invoice and also other details filed in the return. Amendment shall be carried out by filing of a return called amendment return. Payment would be allowed to be made through the amendment return as it will help save interest liability for the taxpayers.
THE DESIGN OF INDIAN GST:
10.1 Concurr
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GST on value addition after adjusting available credit of IGST, CGST, and SGST on his purchases. The Exporting State will transfer to the Centre the credit of SGST used in payment of IGST. The person based in the destination State will claim credit of IGST while discharging his output tax liability in his own State. The Centre will transfer to the importing State the credit of IGST used in payment of SGST. The relevant information will also be submitted to the Central Agency which will act as a clearing house mechanism, verify the claims and inform the respective governments to transfer the funds. The major advantages of IGST Model are:
(i) Maintenance of uninterrupted ITC chain on inter-State transactions.
(ii) No upfront payment of tax or substantial blockage of funds for the interState supplier or recipient.
(iii) No refund claim in exporting State, as ITC is used up while paying the tax.
(iv) Self-monitoring model.
(v) Model takes 'Bus
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s and services tax. Compensation will be provided to a State for a period of five years from the date on which the State brings its SGST Act into force. For the purpose of calculating the compensation amount in any financial year, year 2015-16 will be assumed to be the base year, for calculating the revenue to be protected. The growth rate of revenue for a State during the five-year period is assumed be 14% per annum. The base year tax revenue consists of the states' tax revenues from: (i) state Value Added Tax (VAT), (ii) central sales tax, (iii) entry tax, octroi, local body tax, (iv) taxes on luxuries, (v) taxes on advertisements, etc. However, any revenue among these taxes arising related to supply of alcohol for human consumption, and five specified petroleum products, will not be accounted as part of the base year revenue. A GST Compensation Cess is levied on the supply of certain goods and services, as recommended by the GST Council to finance the compensation cess.&
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on the benefit to the consumer and thereby indulging in illegal profiteering. Any reduction in rate of tax or the benefit of increased input tax credit should have been passed on to the recipient by way of commensurate reduction in prices.
10.6.1 National Anti-profiteering Authority (NAPA) has been constituted under GST by the Central Government to examine the complaints of non-passing the benefit of reduced tax incidence. The Authority shall cease to exist after the expiry of two years from the date on which the Chairman enters upon his office unless the Council recommends otherwise.
10.6.2 The Authority may determine whether any reduction in the rate of tax or the benefit of input tax credit has been passed on to the recipient by way of commensurate reduction in prices. It can order reduction in prices, imposition of penalty, cancellation of registration and any other decision as may deem fit, after inquiry into the case.
10.7 Concept of Supply: GST
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payers (including to manufacturers other than specified category of manufacturers and service providers) having an annual turnover of up to Rs. 1 crore (Rs. 75 lakh for special category States (except J&K and Uttarakhand) enumerated in article 279A of the Constitution). This limit shall be raised to Rs. 1.5 crore after necessary amendments in the GST Acts.
10.10 Zero rated Supplies: Export of goods and services are zero rated. Supplies to SEZs developers and SEZ units are also zero-rated. The benefit of zero rating can be taken either with payment of integrated tax, or without payment of integrated tax under bond or Letter of Undertaking.
10.11 Cross-utilization of ITC: IGST credit can be used for payment of all taxes. CGST credit can be used only for paying CGST or IGST. SGST credit can be used only for paying SGST or IGST.
The credit would be permitted to be utilized in the following manner:
(a) ITC of CGST allowed for payment of CGST & IGST in
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banking, debit/ credit card and National Electronic Funds Transfer (NEFT) / Real Time Gross Settlement (RTGS).
10.14 Tax Deduction at Source: Obligation on certain persons including government departments, local authorities and government agencies, who are recipients of supply, to deduct tax at the rate of 1% from the payment made or credited to the supplier where total value of supply, under a contract, exceeds two lakh and fifty thousand rupees. The provision for TDS has not been operationalized yet.
10.15 Refunds: Refund of tax to be sought by taxpayer or by any other person who has borne the incidence of tax within two years from the relevant date. Refund of unutilized ITC also available in zero rated supplies and inverted tax structure.
10. 16 Tax Collection at Source: Obligation on electronic commerce operators to collect 'tax at source', at such rate not exceeding two per cent of net value of taxable supplies, out of payments to suppliers supplying goods or servi
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Appellate Tribunal: Goods and Services Tax Appellate Tribunal would be constituted by the Central Government for hearing appeals against the orders passed by the Appellate Authority or the Revisional Authority. States would adopt the provisions relating to Tribunal in respective SGST Act.
10.20 Advance Ruling Authority: Advance Ruling Authority would be constituted by States in order to enable the taxpayer to seek a binding clarity on taxation matters from the department. Centre would adopt such authority under CGST Act.
10.21 Transitional Provisions: Elaborate transitional provisions have been provided for smooth transition of existing taxpayers to GST regime.
10.22 Subsuming of taxes, duties etc.: Among the taxes and duties levied and collected by the Union, Central Excise duty, Duties of Excise (Medicinal and Toilet Preparations), Additional Duties of Excise (Goods of Special Importance), Additional Duties of Excise (Textiles and Textile Products), Additional D
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o subsequently extended the CGST Act to J&K.
11.2 On 22nd June, 2017, the first notification was issued for GST and notified certain sections under CGST. Since then, one hundred and five notifications under CGST Act have been issued notifying sections, notifying rules, amendment to rules and for waiver of penalty, etc. Thirteen, twenty eight and one notifications have also been issued under IGST Act, UTGST Act and GST (Compensation to States) Act respectively. Further 68, 72, 68 and 9 rate related notifications each have been issued under the CGST Act, IGST Act, UTGST Act and GST (Compensation to States) Act respectively. Similar notifications have been issued by all the States under the respective SGST Act.
11.3 Apart from the notifications, 55 circulars and 14 orders have also been issued by CBIC on various subjects like proper officers, ease of exports, and extension of last dates for filling up various forms, etc.
ROLE OF CBIC:
12.1 CBIC is playing an active
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ier training programme has been conducted under the leadership of NACIN. This training project is aimed at imparting training on GST law and procedures to more than 60,000 officers of CBIC and Commercial Tax officers of State Governments.
12.3 CBIC would be responsible for administration of the CGST and IGST law. In addition, excise duty regime would continue to be administered by the CBIC for levy and collection of central excise duty on five specified petroleum products as well as on tobacco products. CBIC would also continue to handle the work relating to levy and collection of customs duties.
12.4 Director General of Anti-profiteering, CBIC has been mandated to conduct detailed enquiry on anti-profiteering cases and should give his recommendation for consideration of the National Anti-profiteering Authority.
12.5 CBIC has been instrumental in handholding the implementation of GST. It had set up the Feedback and Action Room which monitored the GST implemen
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the state government holds 24.5 percent. The remaining 51 percent are held by nonGovernment financial institutions, HDFC and HDFC Bank hold 20%, ICICI Bank holds 10%, NSE Strategic Investment holds 10% and LIC Housing Finance holds 10%. The GST Council in its 27th meeting held on 04th May, 2018 has approved the change in shareholding pattern of GSTN. Considering the nature of 'state' function' performed by GSTN, the GST Council felt that GSTN be converted into a fully owned Government company. Accordingly, the Council approved acquisition of entire 51 per cent of equity held by non-Governmental institutions in GSTN amounting to Rs. 5.1 crore, equally by the Centre and the State Governments.
13.3 The design of GST systems is based on role based access. The taxpayer can access his own data through identified applications like registration, return, view ledger etc. The tax official having jurisdiction, as per GST law, can access the data. Data can be accessed by audit authori
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n States) have be registered under GST. Unlike multiple registrations under different tax regimes earlier, a single registration is needed under GST in one State. An additional benefit under Composition scheme has also been provided for businesses with aggregate annual turnover upto Rs. 1 crore. With the creation of a seamless national market across the country, small enterprises will have an opportunity to expand their national footprint with minimal investment.
14.4 Benefits to agriculture and Industry: GST will give more relief to industry, trade and agriculture through a more comprehensive and wider coverage of input tax set-off and service tax set-off, subsuming of several Central and State taxes in the GST and phasing out of CST. The transparent and complete chain of set-offs which will result in widening of tax base and better tax compliance may also lead to lowering of tax burden on an average dealer in industry, trade and agriculture.
14.5 Benef
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to substantive economic growth. Ultimately it will help in poverty eradication by generating more employment and more financial resources. More efficient neutralization of taxes especially for exports thereby making our products more competitive in the international market and give boost to Indian Exports. It will also improve the overall investment climate in the country which will naturally benefit the development in the states. Uniform CGST & SGST and IGST rates will reduce the incentive for evasion by eliminating rate arbitrage between neighboring States and that between intra and inter-State supplies. Average tax burden on companies is likely to come down which is expected to reduce prices and lower prices mean more consumption, which in turn means more production thereby helping in the growth of the industries. This will create India as a “Manufacturing hub”.
14.7 Ease of Doing Business: Simpler tax regime with fewer exemptions along with reduction in multiplicity of taxe
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Registration & Returns Snapshot:
S. No.
Details
As on 31st July, 2018
1.
No. of transited (migrated) taxpayers
66,18,871
2.
Total No. of new applications received for registration
58,07,005
3.
No. of applications approved
49,98,559
4.
No. of applications rejected
7,54,629
5.
Total No. of taxpayers; new + migrated (1 + 3)
1,16,17,430
6.
No. of taxpayers who have opted for composition scheme
17,65,628
7.
No. of 3 (B) returns filed for July, 2017
64,71,410
8.
No. of 3(B) returns filed for August, 2017
69,90,649
9.
No. of 3(B) returns filed for September, 2017
72,89,199
10.
No. of 3(B) returns filed for October, 2017
70,01,094
11.
No. of 3(B) returns filed for November, 2017
70,17,942
12.
No. of 3(B) returns filed for December, 2017
70,49,708
13.
No. of 3(B) returns filed for January, 2018
70,92,810
14.
No. of
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005
28.
No. of GSTR 1 returns filed for April, 2018
22,12,094
29.
No. of GSTR 1 returns filed for May, 2018
21,50,712
30.
No. of GSTR 1 returns filed for June, 2018
45,47,383
31.
No. of GSTR 2 returns filed for July, 2017
25,72,552
32.
No. of GSTR 4 returns filed for quarter July- September, 2017
9,55,243
33.
No. of GSTR 4 returns filed for quarter October December, 2017
14,18,009
34.
No. of GSTR 4 returns filed for quarter January March, 2018
14,25,685
35.
No. of GSTR 4 returns filed for quarter April-June, 2018
12,29,551
CHALLENGES & FUTURE AHEAD:
16.1 Any new change is accompanied by difficulties and problems at the outset. A change as comprehensive as GST is bound to pose certain challenges not only for the government but also for business community, tax administration and even common citizens of the country. Some of these challenges relate to the unfamiliarity with the new regim
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have been issued to guide field formations of CBIC and States in this regard. The government has put in place an IT grievance redressal mechanism to address the difficulties faced by taxpayers owing to technical glitches on the GST portal.
16.3 The introduction of GST is truly a game changer for Indian economy as it has replaced multi-layered, complex indirect tax structure with a simple, transparent and technology-driven tax regime. It will integrate India into a single, common market by breaking barriers to inter-State trade and commerce. By eliminating cascading of taxes and reducing transaction costs, it will enhance ease of doing business in the country and provide an impetus to “Make in India” campaign. GST will result in “ONE NATION, ONE TAX, ONE MARKET”.
*****
Note: This write-up is for education purposes only
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Document 1
Harmonization of Business
Processes and Formats
Common & Shared
IT
IT Infrastructure
Interfaces
Core Services
–
Registration
Return
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Supply to SEZ
Query (Issue) Started By: – Ethirajan Parthasarathy Dated:- 3-8-2018 Last Reply Date:- 5-8-2018 Goods and Services Tax – GST
Got 4 Replies
GST
As per section 16 of IGST Act, supplies made to SEZ units & SEZ developers are treated as “zero rated supply”. But in the recent decision of AAR West Bengal in the case of Garuda Power Private Limited has ruled that :
The Applicant shall be liable to pay tax when supplying to Units and Developers of Special Economic Zones subject to the provisions of section 16 of the Integrated Goods and Services Act, 2017.
I request to learned friends to throw light on the meaning of ruling by AAR
Reply By Rajagopalan Ranganathan:
The Reply:
Sir,
Section 16 of IGST Act, 2017 stipulat
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uards and procedure as may be prescribed, without payment of integrated tax and claim refund of unutilised input tax credit; or
(b) he may supply goods or services or both, subject to such conditions, safeguards and procedure as may be prescribed, on payment of integrated tax and claim refund of such tax paid on goods or services or both supplied,
in accordance with the provisions of section 54 of the Central Goods and Services Tax Act or the rules made thereunder.
The sanction of refund will be governed by provisions of Section 54 of CGST Act, 2017 and rule 96 and 96A of CGST Rules, 2017.
Reply By YAGAY andSUN:
The Reply:
You may claim refund on such paid IGST.
Reply By ANITA BHADRA:
The Reply:
In re Garuda Power Private Limited (G
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ecision before any authority under any provisions of the GST Act.
The officer concerned raises no objection to admission of the Application.
Since the Applicant supplies to units and developers of Special Economic Zones only, as stated in the Application and reiterated by the authorised representative during Personal Hearing, the provisions of Section 16 of IGST Act will be applicable in this case and the tax liability will be at zero rate under sub section 1(b) of the IGST Act.
He may supply without paying tax subject to the provisions under section 16 (3) (a), or he may supply on payment of tax and claim refund subsequently under section 16 (3) (b) of the IGST Act.
Reply By DR.MARIAPPAN GOVINDARAJAN:
The Reply:
I endorse the views of
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GST Input Credit
Query (Issue) Started By: – Ethirajan Parthasarathy Dated:- 3-8-2018 Last Reply Date:- 7-8-2018 Goods and Services Tax – GST
Got 4 Replies
GST
A supplier is engaged in business of knitting and fabric manufacture.
For supply of fabric the GST output rate is less than input tax paid for inputs.
Till 27-07-18 the supplier was taking tax credit of full input tax credit for all inward purchase /services against out tax payable on knitting (labor charge) and fabric sale.
As per notification No 20/2018-Central Tax (Rate) dated 26.07.2018 date of CGST (Rate) the unutilized input tax on certain inputs for fabric activity available as o 31-08-18 will LAPSE.
I am of the opinion that the above notification regarding La
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DOCUMENTS REQUIRE
Query (Issue) Started By: – DEEP KABRA Dated:- 3-8-2018 Last Reply Date:- 4-8-2018 Goods and Services Tax – GST
Got 5 Replies
GST
DEAR SIR,
GOOD AFTERNOON,
I WOULD LIKE TO KNOW ABOUT MERCHANT EXPORT PROCEDURE. AND WHAT KIND OF DOCUMENTS SUBMIT TO DEPARTMENT
PLEASE GUIDE
Reply By SHIVKUMAR SHARMA:
The Reply:
1. Self attested copy of p.o. will be forwarded by the registered recipient exporter to the Jurisdictional GST officer of the Registered supplier.
5. A copy of Shipping bill would be self attested & same to be sent by the registered recipient exporter to the Jurisdictional GST officer of the registered Supplier.
Reply By SHIVKUMAR SHARMA:
The Reply:
For Merchant Export Procedure please Refer Notifi
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CT-1 / ARE-1 formalities and also CST was exempted against H-Form.
On implementation of GST, the facility of procurement of goods without payment of tax by the Merchant exporter for export has been dispensed with.
Consequently, Merchant exporters have faced problem of cash crunch due to buying goods on payment of GST for export and their hard cash has been held up due to the same.
This has strained of his working capital and has particularly hit small exporters. Consequently, the transaction cost of Merchant exporters has been enhanced.
This situation was brought to the knowledge of the Government. Thereby , with the recommendations of GST Council,
The Government exempts the intra-State supply of taxable goods by a registered supplier
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t shall be registered with an Export Promotion Council or a Commodity Board recognized by the Department of Commerce;
(v) the registered recipient shall place an order on registered supplier for procuring goods at concessional rate and a copy of the same shall also be provided to the jurisdictional tax officer of the registered supplier;
(vi) the registered recipient shall move the said goods from place of registered supplier –
directly to the Port, Inland Container Deport, Airport or Land Customs Station from where the said goods are to be exported; or
(b) directly to a registered warehouse from where the said goods shall be move to the Port, Inland Container Deport, Airport or Land Customs Station from where the said goods are to be e
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Supplies to SEZ units are zero-rated u/s 16 of the IGST Act 2017, exempting them from GST.
Case-Laws
GST
Levy of GST – supply of goods or services to SEZ unit or SEZ developer – IGST Act – Whether or not the supply of goods and on-site services to customers in SEZ area to any SEZ unit or SEZ developer is zero rated supply under section 16 of the Integrated Goods & Services Tax Act, 2017? – whether GST is chargeable for the supply of goods or services to SEZ unit or SEZ developer?
TM
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ITC Credit is not reflected on Electronic Credit Ledger after offset of ITC
Query (Issue) Started By: – Rakesh Srivastava Dated:- 3-8-2018 Last Reply Date:- 7-8-2018 Goods and Services Tax – GST
Got 6 Replies
GST
We have filed GSTR-3B before due date for the m/o April-2018 & portal showing offset liabilities successfully at a time of filling the return, but problem is no transaction showing either credit or debit in credit ledger & no ITC aprrox 3.06 crore carried forward on credit ledger, due to this reason we are unable to filled GST Refund. & same problem is also communicated to GST customer care.
I had also raised the tickets two times on GRIEVANCE REDRESSAL PORTAL vide ticket no. 201807183018328 & 201806142636638 but stil
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ITC under RCM
Query (Issue) Started By: – Prabhat Tripathy Dated:- 3-8-2018 Last Reply Date:- 6-8-2018 Goods and Services Tax – GST
Got 5 Replies
GST
Respected Sir
What will be the rate of GST for GTA service Receiver under RCM with ITC?
Reply By Himansu Sekhar:
The Reply:
Five percent
Reply By Ganeshan Kalyani:
The Reply:
GST@5%
Reply By YAGAY andSUN:
The Reply:
However this rate is applicable if the GTA had not claimed any ITC.
Reply By DR.MARIAPPAN GOVINDARAJAN:
The Reply
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Registration of GST with Practical Issues
By: – Sanjeev Singhal
Goods and Services Tax – GST
Dated:- 3-8-2018
Every one know that GST registration is required the moment you cross threshold limit of ₹ 20 lacs and ₹ 10 lacs in NE States. But the most important is the GST registration is mandatory from the day one without any threshold limit.
1. Registration as per Threshold limit. How to compute this threshold limit
Every supplier required to be registered if the above threshold limit has been crossed for the supply of goods or services or both. Except when the supplier deals only in exempted goods or services exclusively. Major problem is how to compute the aggregate turnover so that it can be determine that
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wing the exempted supplies, aggregate turnover can not be determined.
“exempt supply” means supply of any goods or services or both which attracts nil rate of tax or which may be wholly exempt from tax under section 11, or under section 6 of the Integrated Goods and Services Tax Act, and includes non-taxable supply;
What is important here is that Non taxable supply on which GST is not applicable.
Like Salary which is neither goods nor services means thereby that salary is not covered in GST as per Schedule-III, hence salary is non taxable supply.
For Example .
* Mr. A is doctor doing and his own practice and his yearly income is ₹ 12lacs and he sit in hospital for two hours in day on salary basis and his salary is ₹ 6 l
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s only ₹ 1 lakh. Going by the aggregate turn over Mr. A is required to get the registration.
2. Case Where no registration is required -Section-23.
* Person making interstate supply of taxable services and having aggregate turnover , to be computed on all India basis, not exceeding amount of ₹ 20 lacs( ₹ 10 lacs in Special category State). Notification No. 10 dated 13.10.2017.
* Any person engage in making supply of exempted goods or services even though supplies exceeds the threshold limit.
* A agriculturist to the extend of supply of produce out of cultivation of land.
3. Compulsory Registration is required in the following cases without any threshold limit.
* Casual Taxable person.
* Person required to pay
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AN OVERVIEW-INPUT TAX CREDIT UNDER GST
By: – Sandeep Rawat
Income Tax
Dated:- 3-8-2018
GST comprises of the following levies:
a. Central Goods and Services Tax (CGST) [also known as Central Tax] on intra-state or intra-union territory without legislature supply of goods or services or both.
b. State Goods and Services Tax (SGST) [also known as State Tax] on intra-state supply of goods or services or both.
c. Union Territory Goods and Services Tax (UTGST) [also known as Union territory Tax] on intra-union territory supply of goods or services or both.
d. Integrated Goods and Services Tax (IGST) [also known as Integrated Tax] on inter-state supply of goods or services or both. In case of import of goods also, the present levy of Countervailing Duty (CVD) and Special Additional Duty (SAD) would be replaced by integrated tax.
The mechanism of input credit under GST to avail and utilize the credit of these taxes is as follows:
Credit of
To be utilised first for paymen
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e goods or services along with the tax within 180 days from the date of issue of invoice, failing which the amount of credit availed by the recipient would be added to his output tax liability, with interest [rule 2(1) & (2) of ITC Rules]. However, once the amount is paid, the recipient will be entitled to avail the credit again. In case part payment has been made, proportionate credit would be allowed.
C. Documents on the basis of which credit can be availed are:
a. Invoice issued by a supplier of goods or services or both
b. Invoice issued by recipient alongwith proof of payment of tax
c. A debit note issued by supplier
d. An invoice issued under certain circumstances like the bill of supply issued instead of tax invoice if the amount is less than ₹ 200 or in situations where the reverse charge is applicable as per GST law.
e. Bill of entry or similar document prescribed under Customs Act
f. Revised invoice
g. Document issued by Input Service Distributor
All these docu
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ab, life insurance, health insurance except where it is obligatory for an employer under any law;
iv. Travel benefits extended to employees on vacation such as leave or home travel concession;
c. Works contract services when supplied for construction of immovable property, other than plant & machinery, except where it is an input service for further supply of works contract;
d. Goods or services received by a taxable person for construction of immovable property on his own account, other than plant & machinery, even when used in course or furtherance of business;
e. Goods and/or services on which tax has been paid under composition scheme;
f. Goods and/or services used for private or personal consumption, to the extent they are so consumed;
g. Goods lost, stolen, destroyed, written off, gifted, or free samples;
h. Any tax paid due to short payment on account of fraud, suppression, mis-declaration, seizure, detention.
G. Special circumstances under which ITC is available:
a. A
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taxable, the person making such supplies shall be entitled to take ITC in respect of goods held in stock (inputs as such and inputs contained in semi-finished or finished goods) relatable to exempt supplies. He shall also be entitled to take credit on capital goods used exclusively for such exempt supply, subject to reductions for the earlier usage as prescribed in the rules.
e. ITC, in all the above cases, is to be availed within 1 year from the date of issue of invoice by the supplier.
f. In case of change of constitution of a registered person on account of sale, merger, demerger etc, the unutilised ITC shall be allowed to be transferred to the transferee.
g. A person switching over from composition scheme under section 10 to normal scheme or where a taxable supply become exempt, the ITC availed in respect of goods held in stock (inputs as such and inputs contained in semi-finished or finished goods) as well as capital goods will have to be paid.
h. In case of supply of capital
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TC will be allowed when goods are sent to job worker in both the cases:
1. From principal's place of business
2. Directly from the place of supply of the supplier of such goods
However, to enjoy ITC, the goods sent must be received back by the principal within 1 year (3 years for capital goods).
ITC Provided by Input Service Distributor (ISD)
An input service distributor (ISD) can be the head office (mostly) or a branch office or registered office of the registered person under GST. ISD collects the input tax credit on all the purchases made and distribute it to all the recipients (branches) under different heads like CGST, SGST/UTGST, IGST or cess.
ITC on Transfer of Business
This applies in cases of transfer of business. The transferor will have available ITC which will be passed to the transferee at the time of transfer of business.
REVERSAL OF INPUT TAX CREDIT
ITC can be availed only on goods and services for business purposes. If they are used for non-business (personal)
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Key features of Draft GST Simplified Returns
By: – Bimal jain
Goods and Services Tax – GST
Dated:- 3-8-2018
Key features of Draft GST Simplified Returns
The GST Council in its 28th GST Council Meeting held on July 21, 2018 under the Chairmanship of Shri Piyush Goyal, Union Minister for Railways, Coal, Finance & Corporate Affairs has approved the new return formats. The Council had earlier approved the basic principles of GST return design and directed the law committee to finalize the return formats and changes in law.
In pursuance thereof, the CBIC has placed Note on draft GST simplified returns and return formats in public domain on July 30, 2018 for perusal and feedback of stakeholders. The Note on draft format of GST simplified return, inter alia, contains brief note which lists the salient features of the new return format and business process for the information of trade and industry and other stakeholders in two parts i.e. Part – A which specifies the Key featu
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rough SMS facility.
* Taxpayers having a turnover up to ₹ 5 Cr. in the last financial year shall be considered as small taxpayer, who will have optional facility to file quarterly return with monthly payment of taxes on self-declaration basis.
Continuous uploading and viewing:
* Facility of continuous uploading of invoices is available to supplier anytime during the month which shall also be continuously visible to the recipient.
* Invoices uploaded by the supplier by 10th of succeeding month shall be auto-populated in the liability table of the main return of the supplier.
* After the due date for the filing of return is over, the recipient shall also be able to see the return filing status of the supplier and thus be aware that whether the tax liability on purchases made by him has been discharged by the supplier or not.
Due date for uploading invoices and action to be taken by the recipient:
* Taxes payable on invoices uploaded by the supplier by 10th of the nex
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initiated against him after allowing for a reasonable time for filing of the return and payment of taxes.
Unidirectional Flow of document:
* The invoices or debit notes uploaded by the supplier shall be the valid document for availing ITC by the recipient.
* The Invoices or debit notes which have not been uploaded by the supplier and the recipient has availed ITC shall be considered as “missing invoices”. If such missing invoices are not uploaded by the supplier within prescribed time period, then ITC on such invoices or debit notes shall be recovered from the recipient.
Missing invoice reporting:
* Missing invoices shall be reported by the supplier in the main return for any tax period with interest or penalty as applicable.
* Reporting of missing invoices by recipient can be delayed up to two tax periods to allow recipient to follow up and get the missing invoice uploaded from the supplier.
* Taxpayers filing quarterly returns shall report missing invoices in the next
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dment of invoices:
* Amendment of an invoice is only possible where ITC has not been availed and Invoice is not locked by the recipient.
* Invoices on which ITC has been availed by the recipient (i.e. locked invoices) will not be allowed to be amended by the supplier and to amend the reported particular of such invoices, a credit or a debit note will have to be issued by the supplier.
HSN:
* Now the table for reporting supplies with the tax liability at various tax rates shall not capture HSN but would continue to capture supplies at different tax rates as is the present practice.
* The details of HSN shall be captured at four digit or more in a separate table in the regular monthly return.
Return format:
* The main return shall have two main tables – one for reporting supplies on which tax liability arises and one for availing ITC.
* Return shall have annexure of invoices which shall auto-populate the output liability table in the main return.
Payment of multiple li
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ater by the supplier shall be carried out through the amendment return of the relevant tax period to which the invoice pertains.
* Thus, it is better to avail the amendment facility once all the invoices are uploaded, so that invoices reported late can also be amended through the amendment return.
Amendment of details other than that of invoice:
* All user entries of ITC table in the main return would be allowed to be amended.
* Change in the closing balance of ITC shall be affected based on the declaration in the amendment return of the taxpayer. Thus, the opening and closing balances of intervening month(s) shall not get impacted.
Payment due to amended liability & Negative liability:
* Payment would be allowed to be made through the amendment return as it will help save interest liability for the taxpayer. ITC, if available in the electronic credit ledger can also be used for payment of the liability in the amendment return.
* Negative liability arising from the amen
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upplies from SEZ shall be availed on self-declaration basis.
Supply side control:
* For a newly registered taxpayer and a taxpayer who has defaulted in payment of tax beyond a time period and/or above a threshold, uploading of invoices shall be allowed only up to that threshold amount or only after the default in payment of tax is made good respectively.
* If the supplier does not make the default good, the invoice of such supplier shall not be populated in the viewing facility of the recipient and consequently, the recipient would not be able to avail ITC on such invoices till the default in payment of tax by the supplier for the past period is made good.
Profile based return:
* A questionnaire shall be provided to the taxpayer and only such part of return shall be shown to him which are relevant to his profile.
Purchase information in the annual return:
* Invoices/ Supplies on which the recipient does not intend to take ITC but are kept pending or rejected will have t
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rterly return:
* Small taxpayers having turnover up to ₹ 5 Cr. would have option to file one of three forms, namely – Quarterly return, Sahaj or Sugam.
* Quarterly return shall be akin to the monthly return except that it has been simplified and shall not have the compliance requirement in relation to –
* Missing and pending invoices as small taxpayers do not use these procedures in their inventory management.
* Supplies such as non-GST supply, exempted supply etc. as they do not create any liability.
* The details of ITC on capital goods credit shall also not be required to be filled.
These information shall be required to be filled in the Annual Return. Small taxpayers who would like to facility of missing and pending invoice may file monthly return.
Quarterly Return:
* Option to create profile in the quarterly return shall also be available. Sahaj and Sugam are predetermined profiles of the quarterly return.
Sahaj and Sugam Returns:
* Small taxpayers ofte
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In Re : KANSAI NEROLAC PAINTS LIMITED
GST
2018 (8) TMI 524 – APPELLATE AUTHORITY FOR ADVANCE RULING, MAHARASHTRA – 2018 (15) G. S. T. L. 594 (App. A. A. R. – GST)
APPELLATE AUTHORITY FOR ADVANCE RULING, MAHARASHTRA – AAAR
Dated:- 3-8-2018
ORDER NO. MAH/AAAR/SS-RJ/03/2018-19
GST
MR. RAJIV JALOTA, MEMBER AND MRS. SUNGITA SHARMA, MEMBER
PROCEEDINGS
(Under Section 101 of the Central Goods and Services Tax Act, 2017 and the Maharashtra Goods and Services Tax Act, 2017)
At the outset, we would like to make it clear that the provisions of both the CGST Act and the MGST Act are the same except for certain provisions. Therefore, unless a mention is specifically made to such dissimilar provisions, a reference to the CGST Act would also mean a reference to the same provisions under the MGST Act.
The present appeal has been filed under Section 100 of the Central Goods and Services Tax Act, 2017 and the Maharashtra Goods and Services Tax Act, 2017 [hereinafter referred to
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service tax return of Input Service Distributor (ISD) on June 30, 2017 which is carried forward in the electronic ledger maintained by the Appellant under CGST Act, 2017, will not be considered as admissible input tax credit.
D. The appellant has therefore filed an appeal against the said order under section 100 of the CGST Act 2017/MGST Act 2017.
GROUNDS OF APPEAL
1. The impugned Ruling is patently against law, unjust, erroneous and passed with complete non application of mind. The same merits to be quashed on this ground alone.
2. KKC is levied as per section 161 of the Finance Act, 2016. Section 161(5) of the Finance Act specified that for levy and collection of KKC, Chapter V of Finance Act, 1994 (Service Tax) will be applicable. Entry 92C of Union List I of Indian Constitution empowers legislature to levy service tax, as provided under Chapter V of Finance Act, 1994. 101st amendment of constitution deletes Entry 92C of union List 1, in view of implementation of Goods and Serv
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under the aforesaid provision of the Act. Therefore KKC credit will also be considered as admissible CENVAT credit as per proviso (1) to section 140(1) read with section 16 and section 17 of the Act. Advance Ruling authority has denied aforesaid submission of the appellant without stating any reason for the same.
4. Advance Ruling Authority relies on the decision of Hon. Delhi High Court in case of Cellular Operators Association of India to negate the claim of the appellant without understanding the facts and the legal background of both the cases which completely different. Delhi High Court denied cross utilization of unutilized EC and SHE ( being withdrawn) against excise duty and service tax liability as because these cesses have not been subsumed and there was no provision in the law to cross utilized the unutilized EC and SHE cess with excise duty and service tax. In the case of appellant, Section 161(5) of theFinance Act, 2016 brought KKC under Chapter V of Finance Act, 1994 an
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unds properly. It was stated by them that KKC is a CENVAT credit and it got accumulated because the dealer had no KKC liability. According to them, the Delhi High Court judgment quoted by the ARA is not applicable as it was in the case of Education Cess and Secondary and Higher Secondary Education cess and also it was regarding excise duty or service tax. As per their contention, KKC is subsumed in CGST Act and it does not have any independent identity as KKC. Therefore, it should be allowed as credit under the transitional provision. He further referred to section 140(1) of the CGST Act and contended that it does not say anything about cross utilization as in the earlier Act. He stated that it was only under the earlier pre GST regime that KKC was allowed to be utilized only against KKC. However, there is no such condition in the present Act. He also referred to section 140(2) of the CGST Act which speaks about carry forward of CENVAT credit in the case of capital goods. The proviso t
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of law cannot be binding. He therefore prayed that the KKC allowed to be carried forward and should be admissible as Input Tax Credit.
DISCUSSION AND FINDINGS
7. The appellant is engaged in the business of manufacture of paints and providers of works contract services as well. Under the pre GST regime the appellant had a centralized registration for head office, factory and office. Apart from centralized registration the appellant also had separate registration as ISD to distribute the eligible CENVAT credit. According to Rule ll(m) of the CENVAT credit Rules, 2004; the appellant received CENVAT credit at head office which also included KKC, which the appellant could not distribute to its factory as the KKC could be utilized only against the KKC liability. As a result, there was accumulation of KKC credit in the service tax ISD return. The issue is the admissibility of the KKC credit transitioned by the appellant.
8. We have gone through the grounds of appeal as well as all the cont
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and cesses which are admissible to the manufacturer and other producers or provider of taxable services as CENVAT credit. The said rule is reproduced for the sake of clarity below:-
Rule 3. CENVAT credit. –
(1) A manufacturer or producer of final products or a provider of taxable service shall be allowed to take credit (hereinafter referred to as the CENVAT credit) of –
(i) the duty of excise specified in the First Schedule to the Excise Tariff Act, leviable under the Excise Act;
(ii) the duty of excise specified in the Second Schedule to the Excise Tariff Act, leviable under the Excise Act;
(iii) the additional duty of excise leviable under section 3 of the Additional Duties of Excise (Textile and Textile Articles) Act,1978 ( 40 of 1978);
(iv) the additional duty of excise leviable under section 3 of the Additional Duties of Excise (Goods of Special Importance) Act, 1957 ( 58 of 1957);
(v) the National Calamity Contingent duty leviable under section 136 of the Finance A
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t, 2004 (23 of 2004); and
(xa) the Secondary and Higher Education Cess on taxable services leviable under section 136 read with section 140 of the Finance Act, 2007 (22 of 2007); and
(xi) the additional duty of excise leviable under section 85 of Finance Act, 2005 (18 of 2005)
11. It is clear from the above list that no reference is made to the KKC until Notification No.28/2016/Central Excise (N.T.) 26 May, 2016 came into effect. , the Central Government made the following rules which came into effect from 01.06.2016. These rules were intended to amend the CENVAT Credit Rules, 2004. By the said amendment rule 1(a) was inserted. This rule is reproduced below:-
“(la) : Provider of output service shall be allowed to take CENVAT credit of the Krishi Kalyan Cess taxable service leviable u/s.161 of the Finance Act, 2016 (28 of 2016).
12. The CENVAT credit was available in respect of KKC. However, we need to see the following amendments, too, as were brought by the aforesaid Notificat
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above i.e. excise duty, additional excise duty cannot be utilized for payment of KKC. Similarly the CENVAT credit in respect of KKC cannot be utilized for payment of excise duty or service tax. It could be utilized only for payment of KKC. Thus the CENVAT rules made an exception in respect of credit of KKC.
14. The ARA has relied upon the judgment of Delhi High Court in the case of Cellular Operators Association of India v. UOI (W.P. (Civil) No.7837 of 2016 dt.15.02.2018). The Association had filed a Writ Petition for direction that credit accumulated on account of Education Cess and Secondary and Higher Secondary Education Cess should be allowed to utilized for the payment of service tax/excise liability. Under the CENVAT credit rules 2004, credit of EC and SHE could be utilized for payment of EC and CHE respectively. The cross utilization of EC and SHE towards excise duty or service tax was impermissible and not permitted. Later on EC and SHE were abolished from 1.3.2015.The Appell
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de it clear that cess and duty are separate levies and cannot be equated. In the present case KKC cannot be treated as excise duty or service tax. It is to be utilized for payment of KKC only.
15. The Frequently Asked Question (FAQ) issued by the Central Board of Excise and Customs of Indirect Taxes (C.B.E.C.) have clarified that ITC of KKC cannot be carried forward under GST.
16. In view of the above deliberation, we pass the following order.
ORDER
In view of the above discussions and in terms of Section 101(1) of the CGST Act 2017 and MGST Act 2017, we hold that-
The accumulated credit by way of Krishi Kalyan Cess (KKC) as appeared in the Service tax return of Input Service Distributor (ISD) on June 30, 2017 which is carried forward in the electronic credit ledger maintained by the Appellant under CGST Act 2017, shall not be allowed to be taken as admissible input tax credit. Accordingly the order of AAR stands confirmed in terms of the above order.
The appeal filed by M/s. KNP
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One Touch Medicals Products Pvt. Ltd. Versus The Commissioner of Central GST & Central Excise, Patna II
Central Excise
2018 (8) TMI 615 – PATNA HIGH COURT – TMI
PATNA HIGH COURT – HC
Dated:- 3-8-2018
Civil Writ Jurisdiction Case No.12073 of 2018
Central Excise
MR. RAJEEV RANJAN PRASAD J.
Appearance :
For the Petitioner/s: Mr. D.V.Pathy, Advocate
For the Respondent/s: Mr. S.D Sanjay (Addl. Soc. Gen.) Mr. Anjani Kr. Saran, Asst. S.G.
ORAL JUDGMENT
(Per: MR. RAJEEV RANJAN PRASAD)
This writ application has been preferred for setting aside the notice dated 16.02.2018, as contained in Annexure-10, to the writ application, issued by respondent no. 4 directing recovery of Central Value Added Tax (in short 'CENVAT') Credit and Penalty for the period 2009-10 under Section 11 of the Central Excise Act, 1944 read with Section 174 of the Central GST Act.
2. Mr. D.V. Pathy, learned counsel for the petitioner submits that the order of assessment said to have been passed o
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en cancelled, but vide impugned Annexure-12 to the writ application, the Commissioner (Appeals) concluded that the appellant has taken an effort only to nullify their failure to file their appeal within the stipulated period and has chosen to file the appeal against the recovery proceedings initiated against them. The Commissioner (Appeals) observed that because the impugned letter dated 08.02.2018 has been cancelled and withdrawn, the request for appeal has become infructuous. he refused to accept the other request of the appellant to direct the respondent to provide them a certified copy of the order-in-original dated 19.03.2014 in view of the facts available on the record clearly establishing that the relevant order in original dated 19.03.2014 was communicated to the appellant in form of an attested copy which is as good as certified copy of the order taking into account the fact that the said order in original was attested by the Superintendent (Adjn), Central Excise (Headquarters
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alable in nature.
6. Having heard learned counsel for the parties and upon perusal of the records, we find that under Section 35H of the Central Excise Act an appeal is provided against the assessment order within a period of 60 days from the date of service of the order.
7. The contention of the petitioner is that the said section empowers the Commissioner to condone a delay of only up to 30 days if reasonable causes shown and in view of such statutory provision filing of an attested copy of the order in original would not be sufficient to condone the delay in filing of the appeal before the Commissioner (Appeal) but fact remains that the petitioner has not availed the statutory remedy of Appeal against the order dated 19.03.2014.
8. We are not willing to go into the merits of the contention at this stage as we find from Annexure-12 that there is a finding to the effect that the petitioner was served with a duly attested copy of the order dated 19.03.2014, and the Commissioner (App
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Commissioner of Central Goods And Service Tax Versus M/s Radware India Pvt. Ltd.
Service Tax
2018 (8) TMI 616 – SC Order – TMI
SUPREME COURT OF INDIA – SC
Dated:- 3-8-2018
Civil Appeal Diary No. 23370 of 2018
Service Tax
Mr. A.K. Sikri And Mr. Ashok Bhushan JJ.
For the Petitioner(s) : Mr. Vikramjeet Banerjee, ASG, Mrs. B. Sunita Rao, Adv., Mr. Anurag, Adv., Mrs. Neelam Chand, Adv., Mr. Siddhartha Sinha, Adv., Mr. Nachiketa Joshi, Adv. And Mr. B. Krishna Prasad, AOR
For th
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M/s. Ferro Fabs Versus Commissioner of GST and Central Excise Chennai North
Service Tax
2018 (9) TMI 1591 – CESTAT CHENNAI – TMI
CESTAT CHENNAI – AT
Dated:- 3-8-2018
ST/COD/40260/2018 and ST/40635/2018 – Final Order No. 42255/2018
Service Tax
Ms. Sulekha Beevi C.S., Member (Judicial) And Shri Madhu Mohan Damodhar, Member (Technical)
Shri M. Kannan, Advocate for the Appellant
Shri K. Veerabhadra Reddy, JC (AR) for the Respondent
ORDER
Per Bench
This is an application for condonation of delay filed by the appellant seeking to condone the delay of 467 days in filing the appeal.
2. On behalf of the appellant, ld. counsel Shri M. Kannan appeared and argued the matter. He submitted that the impugned order was communi
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or predeposit, their staff who was looking after the service tax matters was affected by cancer and he frequently went to hospital for treatment. Due to his frequent absence for taking treatment, he was mentally disturbed and he failed to bring to the notice of the management about the Order-in-Appeal passed against the appellant and the required follow up. Thus the management was totally unaware of the situation and they failed to file the appeal within the stipulated period. The management came to know of the outcome of the impugned order only when the department insisted for payment of service tax confirmed in the impugned order. The delay occurred due to the sudden illness of the staff looking after the service tax matters.
3. The ld.
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