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2018 (7) TMI 1332 – AUTHORITY FOR ADVANCE RULING – HARYANA – 2018 (15) G. S. T. L. 142 (A. A. R. – GST) – Classification of goods – Brake Pad and Auto Parts – whether the goods to fall under ITC HSN 87083000 attracting 28% GST or ITC HSN 6813 attracting 18% GST? – Held that:- The 'Brake Pads' manufactured by the applicant do not qualify under the ITC HSN 6813 since the heading clearly excludes the mounted frictional material and the product of the applicant is a result of frictional material mounted on metal sheets – the HSN heading 8708 classifies parts and accessories of motor vehicle of headings 8701 to 8705 which are in respect of Tractors (other than tractors of the type used on railway platforms), Motor vehicles for transport of 10 over more person, Motor cars and other Motor vehicles principally designed for the transport of person (other than those of headings 8702), including station wagons and racing cars, Motor Vehicles for transport of goods and special purpose motor vehic

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accessories of motor vehicles of heading 8701 to 8705 (other than tractors) attract 28% CST (14% CGST+14% HGST). – Advance Ruling No. 3 Dated:- 26-3-2018 – Sangeeta Karmakar (Member CGST) and Vijay Kumar Singh (Member SGST) Present : Sh. Pradeep Tayal, Chartered Accountant (POA) for the Applicant (ORDER OF ADVANCE RULING UNDER SECTION 98 OF CENTRAL GOODS & SERVICE TAX ACT, 2017 AND HARYANA GOODS & SERVICE TAX ACT, 2017) Vijay Kumar Singh. (Member) The applicant's application was examined and admitted on 16.02.2017. The applicant had sought advance ruling for correct classification of their product, i.e., Brake Pad and Auto Parts, whether to fall under ITC HSN 87083000 attracting 28% GST or ITC HSN 6813 attracting 18% GST. Report of the Jurisdictional Officer The Jurisdictional officer has submitted in his report dated 23.02.2018 that the ITC HSN 6813 attracting GST (9% CGST + 9% SGST) is for Frictional Material and articles thereof not mounted for brakes and the ITC HSN 8

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were heard in detail. They had no arguments in contradiction to the report of the jurisdictional officer. During discussions it was noticed that the applicant is a 100% EOU and manufactures 'Brake Pads' for motor vehicles which largely are exported out of India. These present had also produced several shipping bills pertaining to export of their goods during the financial year 2012-13 to 2014-15 where ITC HSN was initially mentioned as 6803 but on their subsequent request dated 17.02.2017, the office of Commissioner of Customs (Export), Tughlakabad, New Delhi, vide letter dated 19.01.2018 had allowed the HSN on these invoices to be corrected and changed to ITC HSN 8708-3000. Similar change was also allowed for correct classification of HSN from 8708-9900 to 8708-3000 in several shipping bills for the stated period. After thorough deliberations the decision was reserved on 21.03.2018 which is being released today. DISCUSSIONS AND FINDINGS OF THE AUTHORITY To understand the contr

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cle of headings 8701 to 8705 which are in respect of Tractors (other than tractors of the type used on railway platforms), Motor vehicles for transport of 10 over more person, Motor cars and other Motor vehicles principally designed for the transport of person (other than those of headings 8702), including station wagons and racing cars, Motor Vehicles for transport of goods and special purpose motor vehicles respectively. It is further noted that vide notification no. 1/2017-Central Tax (Rate), dated 28.06.2017, as amended from time to time and the corresponding State tax notification no. 35/ST-2, dated 30.06.2017 as amended from time to time, the parts and accessories of motor vehicles of heading 8701 to 8705 (other than specified parts of tractors) as classifiable under HSN 8708 attract 14% CGST & 14% HGST totaling 28% GST. ADVANCE RULING UNDER SECTION 98 OF THE CGST/HGST ACT, 2017 In the above backdrop of facts we proceed to pass the following advance ruling on the question of

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2018 (7) TMI 1419 – AUTHORITY FOR ADVANCE RULINGS, HARYANA – 2018 (15) G. S. T. L. 117 (A. A. R. – GST) – Classification of goods – Battery’ for Mobile Handset – Under which of the chapter headings of the Customs Tariff Act, 1985, the said product “battery for mobile handsets’’, which is lithium-ion battery would be covered? – Held that:- Sub-heading 85076000, meant for lithium-ion battery, is more specific classification for the product under consideration and heading 85177090 is a general heading for parts of mobile phone. Hence, mobile phone batteries are covered under chapter heading 8507 – lithium-ion battery is classifiable under heading 8507,
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Whether it is included in the description “parts for manufacture of telephones for cellular networks or for other wireless networks”? – Held that:- Mobile phones are classifiable under heading 8517 and the parts of mobile phones are also classifiable under chapter heading 8517. However, it does not imply that any other goods, which a

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cturers who uses the same to make it form part of the mobile handset will, qualify to be classified under heading-85 attracting GST Rate of 12% (CGST rate 6%, SGST rate 6%, IGST rate 12%).
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The product ‘Battery for Mobile Handset’, when sold to the customers other than mobile handset manufacturers who does not use the same in manufacture of mobile handset, will qualify to be classified under heading-8507 having description Electric accumulators, including separators thereof, whether or not rectangular (including square)”, attracting GST Rate of 28% (CGST rate 14%, SGST rate 14%) and IGST rate 28%. – ADVANCE RULING NO. 2 (IN APPLICATION NO. 2) Dated:- 26-3-2018 – Ms. Sangeeta Karmakar, Member CGST And Mr. Vijay Kumar Singh, Member SGST For The Applicant : Sh. Ashok Patil, GM, Sh. Rajeev Kumar, Officer Taxation And Sh. Rakesh Chatbar, C.A. (PoA) RULING BRIEF FACTS OF THE APPLICATION 1.1 M/s Epcos India Pvt. Ltd.. Plot No.32. Sector-5,HSIIDC Growth Center Bawal-123501,Rewari (Haryan

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h is used to connect the mobile handset and cannot be removed by the user. 1.4 Following questions have been framed by the applicant, seeking advance ruling. A. Whether the product Battery for Mobile Handset whether it be separable or non-separable i.e., whether it be detachable or non-detachable, when sold to the mobile handset manufacturers who uses the same to make it form part of the mobile handset will, qualify to be classified under heading-85 having description Parts for manufacture of Telephones for cellular networks or for other wireless networks attracting GST Rate of 12% (COST rate 6%, SGST rate 6%, IGST rate 12%) as mentioned under Serial No. 203 of Schedule lI of the Notification No. 1/2017 Central Tax (Rate) dated 28 June, 2017. Serial No. 203 of Schedule Il of the Notification No. 35/ST-2 dated 30th June, 2017 issued under Haryana Goods and Services Tax Act, 2017 and Serial No. 203 of Schedule II of the Notification So. 1/2017 Integrated Tax (Rate) dated 28 June 2017. B.

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ble/non-separable from the mobile handset, when sold to the mobile handset manufacturers who uses the same to make it form part of the mobile handset, will qualify to be classified under heading 85 having the description Parts for manufacture of Telephones for cellular networks or for other wireless networks , attracting GST Rate of 12% as mentioned under Serial No. 203 of Schedule II of the respective notifications mentioned herein above under CGST Act. Haryana GST Act or IGST Act. However where the same is sold to the consumers who does not use it in manufacture mobile handset, would qualify to be classified under heading 8507 having description of Electric accumulators, including separators therefor, whether or not rectangular (including square) , attracting GST Rate of 28% (CGST rate 14%, SGST rate 14%, IGST rate 14%) as mentioned under Serial No. 139 of Schedule IV of the respective notifications mentioned herein above under CGST Act, Haryana GST Act or IGST Act. 1.6 In support of

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tioned herein above under (CGST Act, Haryana GST Act or IGST Act. 1.8 In support of their contentions, the applicant placed reliance on the judgment passed by the Hon ble Tribunal in the case of Commissioner of Cus. Bangalore v. Nl Micro Technologies Pvt. Ltd. [2014 (311) E.L.T. 458 Tri. Bang.)], wherein the Hon ble Tribunal held that It is common knowledge that cellular phone cannot function without a battery. If that be so, the battery has to be considered as accessory, if not part/component, of cellular phone… 1.9 (a) Based on the judgment state supra, the applicant has contended that Battery for mobile handsets whether the same is detachable/separable or non-detachable/non-separable from the mobile handset, when sold to the mobile handset manufacturers who uses the same to make it form part of the mobile handset, would qualify to be considered as a part of the mobile handsels and thus would attract GST Rate of 12% as mentioned under Serial No. 203 of Schedule II of the respective

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ng description Electric accumulators, including separators therefore, whether or not rectangular (including square) attracting GST Rate of 28% (CGST rate 14%. SGST rate 14%, IGST rate 14%) as mentioned under Serial No, 139 of Schedule IV of the Notification No. 1/2017- Central Tax (Rate) dated 28 June 2017, Serial No. 139 of Schedule IV of the Notification No. 35/ST-2, dated 30th June, 2017 issued under Haryana Goods and Services Tax Act, 2017 and Serial No. 139 of Schedule IV of the Notification No. 1/2017 – Integrated Tax (Rate) dated 28 June 2017. RECORDS OF PERSONAL HEARING – 2nd PROVISO TO SECTION 98(2) OF CGST/HGST ACT, 2017 3. During the personal hearing held on 14.03.2018, the applicant reiterated the submission made vide their application dt,26.12.2017. DISCUSSIONS AND FINDINGS OF THE AUTHORITY 4.1 The questions raised before the Authority for Advance Ruling, have been elaborated in para 4.1 and 4.2 above. The first aspect to be decided in the instant case is, as to under whic

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used in mobile phones, is covered. Rules for interpretation of Customs Tariff read with Section 2 of the Customs Tariff Act, 1985, have to be considered. Rule 3 of these rules provide that where goods are, prima facie, classifiable under two or more headings, classification shall be under the heading which provides the most specific description shall be preferred to headings providing a more general description. In the instant case, lithium-ion mobile phone batteries, prima facie, appears to be covered under the following headings. 8507 ELECTRIC ACCUMULATATORS, INCLUDING SEPARATORS TH OR NOT RECTANGULAR (INCLUDING SQUARE) 8507 60 00 Lithium -ion 8517 TELEPHONE SETS, INCLUDING TELEPHONES FOR CELLULAR OTHER WIRELESS NETWORKS: OTHER APPARATUS FOR THE TRANSMISSION OR RECEPTION OF VICE, IMAGES OR OTHER * \T c INCLUDING APPARATUS FOR COMMUNICATION IN A WIRED OR WIRELESS NETWORK (SUCH AS A LOCAL OR WIDE AREA NETWORK), OTHER THAN TRANSMISSION OR RECEPTION APPARATUS OF HEADING 8443, 8525, 8527

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onsidering eligibility as automobile parts, components and assemblies, for the purpose of MRP based valuation, CBEC, vide circular No.167/3/2008-CX.4 dt. 16.12.2008, clarified that all goods which are commonly known and sold in the trade as parts, components and assemblies are covered by the said entry , irrespective of their classification in the Tariff. It was further clarified that the term parts, components and assemblies of automobiles includes items like batteries, brake assembly, tyres, tubes and flaps, IC engines, ball bearing etc. Thus, it is established that it is not necessary that a part is to be classified in the same heading, in which the main item is covered. 4.5 In the case of State of Punjab v. Nokia India Pvt. Ltd. [2015(315)ELT162(SC), the Hon ble Apex Court ruled that part is that item without which the main item cannot be operated. 4.6 We also find force in the contentions raised by the applicant that a mobile phone cannot function, cannot be operated without a bat

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bile phone handsets, they qualify to be covered vide S.No.203 schedule II. In view of the above, we pass the following advance ruling. ADVANCE RULING UNDER SECTION 98 OF THE CGST/HGST ACT, 2017 5.A. The product Battery – for Mobile Handset whether it be separable or non-separable i.e.. whether it be detachable or non-detachable, when sold to the mobile handset manufacturers who uses the same to make it form part of the mobile handset will, qualify to be classified under heading-85 having description Parts for manufacture of Telephones for cellular networks or for other wireless networks attracting GST Rate of 12% (CGST rate 6%, SGST rate 6%, IGST rate 12%) as mentioned under Serial No. 203 of Schedule VI of the Notification No. 1/2017 Central Tax (Rate) dated 28 June, 2017, Serial No. 203 of Schedule II of the Notification No. 35/ST-2 dated 30th June,2017 issued under Haryana Goods and Services Tax Act, 2017 and Serial No. 203 of Schedule II of the Notification No. 1/2017 Integrated fa

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2018 (7) TMI 1638 – AUTHORITY FOR ADVANCE RULING – KERALA – TMI – Classification of Demo Cars – whether the sale of 'demo cars' will fall under Rule 32(5) of the GST Rules, 2017? – The applicant seeks permission to withdraw the above application – Held that:- The application seeking advance Ruling is hereby dismissed as withdrawn. – CT/779/18-C3 Dated:- 26-3-2018 – Senthil Nathan S, IRS (Member, CGST) and N. Thulaseedharan Pillai, Member, SGST ORDER M/s. Popular Motor World (P) Ltd., Ernakulam

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Customs – PUBLIC NOTICE No. 53/2018 – Dated:- 26-3-2018 – OFFICE OF THE COMMISSIONER OF CUSTOMS (EXPORT-II) NEW CUSTOMS HOUSE MUMBAI – 400 001. F. No: S/16-Misc-54/2017-18 DBK Date: 26.03.2018 PUBLIC NOTICE No. 53/2018 Sub:- Refund of IGST on Export-Extension of date in SB005 alternate mechanism cases & clarifications in other cases-reg. CBEC vide Circular No.5/2018-Customs dated 23.02.2018 provided for an alternative mechanism with officer interface to resolve invoice mismatch cases (SB005

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Customs – PUBLIC NOTICE No. 12/2018-Customs – Dated:- 26-3-2018 – OFFICE OF THE COMMISSIONER OF CUSTOMS (PREVENTNIVE) 55-17-3, C-14, 2nd Floor, Road No.2, Industrial Estate, Autonagar, Vijayawada – 520007 Phone: 0866-2551261 Fax: 0866-2551156 C. No. VIII/09/01/2017-Cus.Tech.(PF-I) Date: 26.03.2018 PUBLIC NOTICE No. 12/2018-Customs Subject Customs – Refund of IGST on Export – Extension of date of SB005 alternate mechanism cases & clarification in other cases – Regarding. ***** Attention of all the Importers, Exporters, Customs Brokers, Steamer Agents, Custodians/Customs Cargo Service Providers, Trade Associations/Chamber of Commerce, Members of the RAC/PGC and the Public is invited to the Public Notice No.09/2018 – Customs, dated 27.02.

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es having SB005 error have now greatly reduced due to continuous outreach done by the Board and increased awareness amongst the trade, but some exporters have nevertheless, have committed errors in filing invoice details in shipping bill and GST returns. Therefore, keeping in view the difficulties likely to be faced by the exporters in case SB005 are allowed to be corrected through officer interface for SBS filed up to 31.12.2017, it has been decided to extend this facility to those shipping bills filed till 28.02.2018. 3. Further, representations have also been received from: (i) field formations seeking resolution of SB006 errors due to discontinuance of transference copy of shipping bill. It has been proposed by the field formations that

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ST through an officer interface wherein the officer can verify and satisfy himself of the actual payment of IGST based on GST return information forwarded by GSTN. DG(Systems) shall open a physical interface for this purpose. 4. All the exporters are requested to check the status of their refund claims at ICEGATE (Ref. link https://www.icegate.gov.in/iceLogin/loginAction?) and approach the jurisdictional officer for rectification of errors referred at Para 3 above for expeditious disbursal of Refund. 5. Action to be taken in terms of the decisions taken in this Public Notice should be considered as Standing Order for the purpose of officers and staff. (SUDHA KOKA) COMMISSIONER – Circular – Trade Notice – Public Notice – Instructions – Offic

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2018 (6) TMI 458 – AUTHORITY FOR ADVANCE RULING HYDERABAD TELANGANA – 2018 (13) G. S. T. L. 345 (A. A. R. – GST) – Classification of goods – Polished/Processed limestone slabs – In which Chapter the commodity called “Polished/Processed limestone slabs” falls? – Under which HSN Code the above commodity comes? – Can it be classified as “Mineral substances not elsewhere specified or included” which is mentioned under HSN Code 2530? – Can it be classified under any of the HSN Codes 2515/2516/2521? – Can it be retained under HSN Code 25 with inaugural phrase of “Goods not mentioned elsewhere” as mentioned at the start of column of 5%?
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Held that:- It is very clear from the explanatory notes given for heading 25.15, 25.16 & 25.21 that stones which are roughly trimmed or merely cut by sawing or otherwise into blocks or slabs of a rectangular shape are classifiable in headings 25.15 or 25.16 and the blocks or slabs which have undergone the process of polishing are not classifiable under

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ication in Form GST ARA-01under Section 97(1) of TGST Act,2017 read with Rule 103 of CGST/TGST Rules, 2017and sought advance ruling on the following issues: (i) In which Chapter the commodity called "Polished/Processed limestone slabs" falls? (ii) Under which HSN Code the above commodity comes? (iii) Can it be classified as "Mineral substances not elsewhere specified or included" which is mentioned under HSN Code 2530? (iv) Can it be classified under any of the HSN Codes 2515/2516/2521? (v) Can it be retained under HSN Code 25 with inaugural phrase of "Goods not mentioned elsewhere" as mentioned at the start of column of 5%? 2. The applicant submitted the application in Form GST ARA-01 and Statement containing the applicant's interpretation of law &relevant facts and requested for advance ruling on classification of "Polished/Processed limestone slabs". They have submitted a copy of Challan evidencing payment of application fee of ₹

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; CUT done on a SLAB of same size. In economic terms also any of the two processes combined together cannot match a single process of SAWN which is allowed in written form under HSN Code 2516. Selling price wise and quality wise also there is a huge difference in these both varieties of stones and their cheap polish slabs are mostly used in low budget housing needs. These cheap quality Polish stones are also a last resort for a customer to select from. c) Processed or Mirror Polished Marble/Granite SLABs have also not been taken out of Chapter 25 which is evident from the Notification No. 41/2017 issued after GST Council's Guwahati meeting held on 10-11-2017. The rate of GST on these stones have been reduced from 28 to 18 classifying under the same chapter of 25. It does mean that without mentioning of word POLISH or any other process for Marble/Granite under description column, they have been retained in Chapter 25 only and further bear a meaning of such as Polished, Cut etc. Like

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y of Judges of SC so far and the matter is still sub-judice before a larger bench now. And their commodity in its raw form suffers additional juicy fiscal burden in the form of ROYALTY at the hands of Mining authorities of State Government. The process of expensive and luxurious category Marble/Granite is very complex in comparison to their Polish slabs; to such an extent that processing expenses incurred only on SAWN process of Granite/Marble is 2-4 times higher than the entire material cost of Processed Limestone slab itself of same surface area. e) Hence, finally it was submitted that at any angle it is appropriate that their commodity called "Polished/Processed limestone slabs" should not be taken out from chapter 25. Therefore, in light of their submissions they request the advance ruling authority to declare that POLISHED or PROCESSED LIMESTONE SLABS comes under any of the HSN Codes of Chapter 25. 4. The applicant is seeking advance ruling in respect of classification o

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Stone; plastering materials, lime and cement are dealt with. As per the chapter notes to chapter 25, the headings of this chapter covers mineral products only in the crude state. Minerals which have been otherwise processed (e.g., made up into articles by shaping, carving etc,) generally fall in latter chapters(for example, chapter 28 or 68). 7. The heading 25.15 covers Marble, Travertine, Ecaussine and other Calcareous Monumental or Building stone of an apparent specific gravity of 2.5 or more and Alabaster whether or not roughly trimmed or merely cut and is restricted to the stones specified, presented in the mass or roughly trimmed or merely cut, by sawing or otherwise, into blocks or slabs of a rectangular(including square) shape. Blocks, etc., which have been further worked, i.e., bossed, dressed with pick, bushing hammer or chisel, etc., sand-dressed, ground, polished, chamfered, etc., are classified in heading 68.02. 8. The subheading explanatory notes for subheading 2515.11 are

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ape. 9. Similarly, the subheading explanatory notes for subheading 2515.12 are given below: To fall in this subheading, the blocks and slabs which have been merely cut by sawing must bear discernible traces of the sawing (by wire strand or other saws) on their surfaces. 10. The heading 25.16 covers Granite, Porphyry, Basalt, sandstone and other monumental or Building stones, whether or not roughly trimmed or merely cut, by sawing or otherwise into blocks or slabs……… The stones of this heading may be shaped or processed in the same ways as the stones of heading 25.15 (including building limestone or Portland stone) and that stones in shapes identifiable as road or paving setts, flagstones or curbstones are classified in heading 68.01 even if merely shaped or processed as specified in the text of this heading. 11. The heading 25.21 covers limestone flux and limestone and other calcareous rocks commonly used for the manufacture of lime or cement, not being building or monu

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slate) which has been worked beyond the stage of the normal quarry products of chapter 25. The heading therefore covers stone which has been further processed than mere shaping into blocks, sheets or slabs by splitting, roughly cutting or squaring by sawing(square or rectangular faces). The heading thus covers stone in the forms produced by the stone-mason, sculptor, etc., viz: (A)……….. (B) Stone of any shape (including blocks, slabs or sheets), whether or not in the form of finished articles, which has been bossed (i.e., stone which has been given a "rock faced" finish by smoothing along the edges while leaving rough protuberant faces), dressed with the pick, bushing hammer, or chisel, etc., furrowed with the drag-comb, etc., planed, sand dressed, ground, POLISHED, chamfered, moulded, turned, ornamented, carved, etc. The heading therefore includes not only constructional stone (including facing slabs) worked as above, but also articles such as steps, co

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Customs – PUBLIC NOTICE NO. 15/2018 – Dated:- 25-3-2018 – OFFICE OF THE PRINCIPAL COMMISSIONER OF CUSTOMS CUSTOM HOUSE: PORT AREA: VISAKHAPATNAM – 530 035 F. No. P3/06/2017 – A.M. (Pt.l) Date: 25.03.2018 PUBLIC NOTICE NO. 15/2018 Sub:- Refund of IGST on Export – Extension of date in SB005 alternate mechanism cases & clarifications in other cases – reg. Attention of Importers, Exporters, Customs Brokers and Members of Trade is invited to this office Public Notice No 09/2018, dated 26 C2 2018 issued on the basis of Board's Circular No. 5/2C18-Customs, dated 23.02.2C18 which provided for an alternative mechanism with officer interface to resolve Invoice mismatch cases for Shipping Bills filed upto 31.12.2017 Although the cases having

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continuance of transference copy of Shipping Bill. Board has examined and agreed to the proposal of field formations that in lieu of transference copy of Shipping Bill either the final Bill of Lading issued by the Shipping Lines or written confirmation from the Custodian of the gateway port may be treated as a valid document for the purposes of integration with the EGM. (ii) Exporters that by mistake they have mentioned the status of IGST payment as NA' instead Of mentioning "P" in the Shipping Bill. in other words, the exporters have wrongly declared that the shipment is not under payment of IGST, despite the fact that they nave paid the IGST As a one time exception, Board has decided to allow refund of 'CST through is an

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Goods and Services Tax – Started By: – RadheyShyam Mangal – Dated:- 24-3-2018 Last Replied Date:- 13-5-2018 – As per Section 20 of the CGST Act, input tax credit on account of IGST Credit can be distributed by Input Service Distributor as IGST or CGST. As per Rule 39(e) of CGST Rules, which prescribes procedure for distribution of credit by Input Service Distributor, says input tax credit on account of IGST can be distributed as IGST itself. The GSTR-6 available online has one loophole i.e. it

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Goods and Services Tax – Difficulties in filing of GST Tran-1 and other returns – HC directed the revenue to accept returns provisionally either by way of opening the portal or manually. – TMI Updates – Highlights

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Goods and Services Tax – E-way Rules – scope of the expressions ‘transported by railways’, ‘transportation of goods by railways’, ‘transport of goods by rail’ and ‘movement of goods by rail’ – New Exp

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Goods and Services Tax – Anti-Profiteering – scope of Interested Party – Explanations to Chapter XV of the CGST Rules, 2017 as amended. – TMI Updates – Highlights

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Goods and Services Tax – Anti-Profiteering – Decision to be taken by the majority – Rule 134 of the CGST Rules, 2017 as amended. – TMI Updates – Highlights

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Goods and Services Tax – Anti-Profiteering – Order of the Authority – Rule 133 of the CGST Rules, 2017 as amended. – TMI Updates – Highlights

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Goods and Services Tax – Anti-Profiteering – Duties of the Authority – Rule 127 of the CGST Rules, 2017 as amended. – TMI Updates – Highlights

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Goods and Services Tax – Anti-Profiteering – Initiation and conduct of proceedings – Rule 129 of the CGST Rules, 2017 as amended – TMI Updates – Highlights

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Goods and Services Tax – Anti-Profiteering – Secretary to the Authority – Rule 125 of the CGST Rules, 2017 as amended – TMI Updates – Highlights

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Goods and Services Tax – Anti-Profiteering – Appointment, salary, allowances and other terms and conditions of service of the Chairman and Members of the Authority – Rule 124 of the CGST Rules, 2017 as amended – TMI Updates – Highlights

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Goods and Services Tax – Conditions and restrictions in respect of inputs and capital goods sent to the job worker – Rule 45 of CGST Rules, 2017 as amended – TMI Updates – Highlights

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Goods and Services Tax – After introduction of GST, increasing trend in the number of companies’ registrations, industrial activity has accelerated and growth in sales for corporates has also seen a remarkable increase – TMI Updates – Highlights

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Customs – Exemption to specified goods imported on procured by EOU s, STP Units, EHTP units etc. for specified purposes – Exemption from IGST extended till 1.10.2018 – TMI Updates – Highlights

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Customs – Refund of IGST on Export—Extension of date in SB005 alternate mechanism cases & clarifications in other cases – Circular – TMI Updates – Highlights

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Goods and Services Tax – Started By: – Dinesh Biyanee – Dated:- 24-3-2018 Last Replied Date:- 26-3-2018 – if a person receives commission less than 20 lacs during a year will need GST registration or not.will he be considered as pure agent ? – Reply By KASTURI SETHI – The Reply = (i) No registration required. (ii) Whether a commission agent is pure agent or not, it depends upon terms and conditions of contract/agreement . However example C & F Agent, CHA etc. are pure agent. Rule 33 of CGST Rules, 2017 also prescribes the procedure for transaction in which a person acts as a pure agent for a principal for certain services supplied to the principal through third party. Although, supply by principal and agent or vice versa inter se is tr

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– (a) enters into a contractual agreement (whether written on otherwise) with the recipient of supply to act as his pure agent to incur expenditure or costs in the course of supply of goods or services or both; (b) neither intends to hold nor holds any title to the goods or services or both so procured or provided as pure agent of the recipient of supply; (c) does not use for his own interest such goods or services so procured; and (d) receives only the actual amount incurred to procure such goods or services. – Reply By Alkesh Jani – The Reply = Sir, for my knowledge purpose, please clarify above raise issue by pursuing Section 15(2)(b) & (c) of the CGST Act, 2017. Regards, – Reply By KASTURI SETHI – The Reply = Section 15 (2) (b) &amp

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Goods and Services Tax – GST – By: – Altamush Zafar – Dated:- 24-3-2018 – The first financial year under the GST regime is coming to an end but there is no dearth of confusions in the provisions of the law. This series will focus on various issues that are still unanswered. This is the first part and we will talk about the following issue: Topic ; Input Tax Credit (ITC) First a brief explanation about what is Input Tax Credit. Input Tax Credit is the tax paid on your purchases which can be availed and utilized to pay taxes on your sales. In this way the person pays taxes only on the value added in his product or service. In Indian GST Law the tax structure is a dual model. For Intra-State (within a state) Transactions Central GST (CGST) an

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during his business trip. The hotel will charge him CGST and Maharastra GST. Now the question arises whether the person will be eligible to take credits of this service even if he provides the GSTIN of his firm. The opinions of Consultants are divided on this matter. One category are of the opinion that no credits shall be available on this transactions and to avail the credits the person will have to get registered in Maharashtra. The second category is of the opinion that the person will be able to avail the CGST portion as that has applicability to all over India. This issue might not hit hard on businesses in general as number of transactions might be less but it will certainly be a problem for people who are engaged in related business

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Goods and Services Tax – GST – By: – Dr. Sanjiv Agarwal – Dated:- 24-3-2018 Last Replied Date:- 14-4-2018 – Leasing out the immovable property by the assessee was a taxable service under the category of Renting of Immovable Property under Section 65(105)(zzzz) of the Finance Act, 1994, as amended with effect from 01-07-2010. The CBEC vide DO F. No. 334/1/2010-TRU dated 26-02-2010 had clarified that it has been reported in many states, the local industrial corporation of PSUs or even private organization rent vacant land on a long terms leases with an explicit understanding that lessee would construct factory or commercial building on that land. In such cases, the ownership of the land is not transferred to the lessee and thus it is a service provided by the lessor to the lessee. The situation is similar to renting out a constructed structure for commercial purposes except that at the time of executing the lease agreement the land is in a vacant state and that later the lessee construc

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es against such provisioning of lease / renting service. Consideration means any amount that is payable for any service provided or to be provided. Lessor receives the amount in the form of upfront lease premium and other charges as consideration for lease. Upfront lease premium is charged on one time basis but on the other hand other charges are charged on regular basis (annual or otherwise). The premium is the price paid for obtaining the lease of an immovable property. While rent, on the other hand, is the payment made for use and occupation of the immovable property leased. Service tax on renting activity as stipulated under Section 65B (41) of the Finance Act, 1994 read with Rule 2(1)(f) of the Service Tax Rules, 1994 cannot be charged on the amount of premium or salami paid by the lessee to the lessor for transfer of interest in the property from the lessor to the lessee as this amount is not for continued enjoyment of the property leased out. Since the levy of service tax is on

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occupation of immovable property leased. Tax is payable on renting of immovable property. Lease premium is not for continued enjoyment of property and as such demand was held to be not sustainable. In City & Indus. Dev. Corpn. of Maharashtra Ltd vs. CST, Mumbai-II, 2014 (11) TMI 127 – BOMBAY HIGH COURT , it has been held by Bombay High Court that Service Tax is leviable on quantum of lease charges and not on lease premium. In Infinity Infotech Parks Ltd. v. Union of India 2014 (12) TMI 36 – CALCUTTA HIGH COURT , it was held that prima facie, there is a distinction between premium or salami, being price paid for transfer of a right to enjoy property and rent paid periodically to lessor; while former was a capital income, latter was a revenue receipt. Premium/salami is not advance rent which constitutes revenue receipt. Long-term lease for 99 years has been held to amount to 'transfer' under Income-tax law and premium or salami received was held taxable under head 'Capita

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footing when compared to the regular lease rent, received in a periodical manner. On identical set of facts, with reference to lease granted by Tripura Industrial Development Corporation, the High Court of Tripura in the case of Hobbs Brewers India Pvt. Ltd. v. Union of India reported in [ 2016 (4) TMI 1173 – TRIPURA HIGH COURT ] held as below: 4. We are not at all inclined to even issue notice in the writ petition. A perusal of Section 65(90a) and Section 65(105)(zzzz) of the Finance Act, 1994 as quoted in the letter dated 23-11-2015 clearly shows that Renting of Immovable Property Service includes renting, letting, leasing, licensing or other similar arrangements amounts to providing service and under Section 65(105)(zzzz) it is a taxable service. 5. It is urged on behalf of the petitioner that what is taxable is the rent and not premium. This argument is without any basis whatsoever. What is taxable is the consideration for the transfer. Even if premium is charged that is like char

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l plots (Section 104) Finance Act, 2017 had inserted a section 104 as special provision in Finance Act, 1994 for retrospective exemption to lease premium/upfront fee in relation to long term lease of industrial plots. This provision sought to insert section 104 in the 1994 Act so as to exempt service tax leviable on one-time upfront amount (premium, salami, cost, price, development charge or by whatever name called) in respect of taxable service provided or agreed to be provided by a State Government industrial development corporation or undertaking to industrial units by way of grant of long-term lease of thirty years or more of industrial plots, during the period commencing from the 1st day of June, 2007 and ending with the 21st day of September, 2016 (both days inclusive). Earlier, vide Notification No. 41/2016-ST dated 22.09.2016, taxable services provided by State Government Industrial Development Corporations/ Undertakings to industrial units by way of granting long-term (thirty

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Goods and Services Tax – Started By: – BalKrishan Rakheja – Dated:- 24-3-2018 Last Replied Date:- 25-3-2018 – A manufacutrer (Ltd Company) having one unit in Panchkula and another in Baddi (HP) (same name and same PAN) and engaged both are in manufacturing of medicine. Unit situated at Panchkula purchased the medicine from their Badi unit on payment of IGST and exported the same from the Panchkula premises in the same packing on same day after availing the ITC on these finished goods. The party export these goods (medicine) under LUT and now filed refund for accumulated ITC. on perusal of time of clearance invoices it also found that the difference of time of issuance of invoice from Badias well as from Panchkula is only 8-15 Minutes . Now

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reply is as under:- (1) Yes.(2) Yes.(3) Sometimes timing set on the computer creates such problem. You are right to the extent that it is practically not feasible to reach the goods between 15-20 minutes. Journey takes more than one hour between Panchkula and Baddi. However, if your transaction is genuine, nothing to worry. Other supporting documents will come to your rescue i.e. Export docs, receipt of goods by foreign buyer, airway bill, foreign exchange, BRC, GR (consignment note) etc. In view of these docs, the error of timing would be treated as procedural/clerical/typographical lapse. – Reply By BalKrishan Rakheja – The Reply = Thanks Sethi Ji, Sir I am from Department and my confusion is that the party has submitted 4 claim for four

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