Author: admin_gst

Eligibility of ITC
Query (Issue) Started By: – Manoj Kumar Dated:- 6-5-2018 Last Reply Date:- 8-5-2018 Goods and Services Tax – GST
Got 9 Replies
GST
Dear Sirs,
Whether ITC is admissible for the followings:-
1. Uniforms purchased for employees.
2. Stationery items and house keeping materials
3. Monthly taxi fare paid for pick up and drop up at home
4. GST paid to Service Provider for EPF of employees
5. GST paid for Water Can (20 ltrs), Pet bottles (500 ml & 1000 ml)
6. Courier Charges
7. GST paid to Service Provider for Air Freight Service (Export) and Ocean Freight Service(Import)
Reply By YAGAY and SUN:
The Reply:
1. Uniforms purchased for employees.Yes
2. Stationery items and house keeping materials. Yes
3. Mon

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“Bill to ship” scenarios also included.Tax is actually paid by the supplier.He has furnished the return.If the inputs are received in lots, he will be eligible to avail the credit only when the last lot of the inputs is received.He should pay the supplier, the value of the 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.
Reply By Ganeshan Kalyani:
The Reply:
Input tax credit is eligible on

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Migration of GSTIN
Query (Issue) Started By: – Prabha karan Dated:- 6-5-2018 Last Reply Date:- 8-5-2018 Goods and Services Tax – GST
Got 6 Replies
GST
My old GSTIN is 33FUZPS8055P1Z7, Its automatically deleted from server, the GST officials told "take a New GST", so we get a new GSTIN 33FUZPS8055P3Z5. We have collect the GST amount from our clients with a old no. How to file the GST ?
Reply By YAGAY and SUN:
The Reply:
* Bring this issue in the knowledge of the Jurisdictional Commissioner.
* Inform you customer about it as ITC issue may creep in.
* Write to GRIEVANCE REDRESSAL PORTAL FOR GST
https://selfservice.gstsystem.in/
Reply By Swapnil Bugde:
The Reply:
1. Had you activated your profile on the GST Po

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Valuation of rent a cab services
Query (Issue) Started By: – Ashwini Hegde Dated:- 6-5-2018 Last Reply Date:- 8-5-2018 Goods and Services Tax – GST
Got 12 Replies
GST
Whether toll charges, permit charges and parking charges collected indicated separately in the invoice as reimbursement chargeable to GST?
Reply By Alkesh Jani:
The Reply:
Sir, expenses incurred by the recipient on behalf of the supplier, incidental expenses like commission & packing incurred by the supplier, interest or late fees or penalty for delayed payment and direct subsidies (except government subsidies) are required to be added to the price (if not already added) to arrive at the taxable value (refer Section 15(2) of the CGST Act, 2017).
In view of abov

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n Sl. No.23 of Notification No. 12/2017- Central Tax (Rate) dated 28.6.2017 exempts gist payable on toll charges collected by the person in charge of the toll booth.station. It is not exempting inclusion of toll charges in the value of the goods or services or both supplied.
In view of the provisions of Section 15 (2) (c) of CGST Act 2017 " incidental expenses, including commission and packing, charged by the supplier to the recipient of a supply and any amount charged for anything done by the supplier in respect of the supply of goods or services or both at the time of, or before delivery of goods or supply of services" is includible in the value of supply. Therefore except CGST, SGST or UTGST all other expenses incurred for the

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r the GST Valuation Rules 2017,a pure agent is given the following meanings.
A “pure agent” means a person who:-
(a) enters into a contractual agreement 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 thegoods 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 in addition to the amount received for the supply he provides on his own account.
Some examples of pure agent are:
1. Port fees, Port charges, Custom

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Krishi Kalyan Cess Credit from ISD Returns Not Admissible as Input Tax Credit under CGST Act 2017.
Case-Laws
GST
GST – Transition of KKC Credit as ITC – Whether 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 company under CGST Act 2017, will be considered as admissible input tax-credit? – Held No – AAR
TMI Updates

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High Court rules incomplete e-way bill without vehicle number doesn't justify goods seizure; quashes Section 129(3) order.
Case-Laws
GST
Incomplete E-way bill – GST – Seizure of goods with vehicle – detention on the ground that Part-B of e-way bill was incomplete – Merely of none mentioning of the vehicle no. in Part-B cannot be a ground for seizure of the goods – Seizure order and SCN issued u/s 129(3) quashed – HC
TMI Updates – Highlights, quick notes, marquee, annotation, news, a

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SUPPLIER OR CREDITORS ISSUED CREDIT NOTE SHOWING IN GSTR2 CAN WE WE TAKE OUR GSTR1
Query (Issue) Started By: – nandankumar roy Dated:- 5-5-2018 Last Reply Date:- 7-5-2018 Goods and Services Tax – GST
Got 3 Replies
GST
DEAR SIR,
SUPPLIER OR CREDITORS ISSUED CREDIT NOTE SHOWING IN GSTR2 CAN WE WE TAKE OUR GSTR1 BY TREAT AS DEBIT NOTE PL CONFIRM OR WHETHER CREDITORS ITC ONLT TO BE SHOWN IN ONLY IN 3B RETURN TILL WAIT SUBMISSION OF GSTR2 IN FUTURE.
WITH REGARDS,
N K ROY
Reply By Alk

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Acknowledgement for LUT under GST
Query (Issue) Started By: – Pradeep Kumar Dated:- 5-5-2018 Last Reply Date:- 25-6-2018 Goods and Services Tax – GST
Got 15 Replies
GST
Dear Sir,
We have filed LUT online for the year 2018-19 on 04.04.18.
Now we want to take print out of Acknowledgement, how this is possible.
Please help
Reply By YAGAY and SUN:
The Reply:
LUT shall be deemed to be accepted on Generation of ARN, No Documents required to be physically submitted to Jurisdictional Office: CBIC
Circular No. 40/14/2018-GST dtd. 06-04-2018
In a recent circular issued by the Central Board of Indirect Taxes and Customs (CBIC), the board made clarifications on issues related to the furnishing of Bond / Letter of Undertaking (LUT) for exports. The circular clarified that a Letter of Undertaking (LUT) shall be deemed to be accepted as soon as an acknowledgement bearing the Application Reference Number, is generated online. It further clarified that no documents are required to b

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pe. From view you can download it and take print out. Hope this may help you.
Thanks
Reply By Pradeep Kumar:
The Reply:
Sir,
If we follow the above, we can get the filed LUT application only.
We require Acknowledgement for LUT (online)
Reply By YAGAY and SUN:
The Reply:
Your ARN is your acknowledgment.
Reply By SALIM NADAF:
The Reply:
Your ARN No. is your LUT No. and mention in your export invoice
Reply By YAGAY and SUN:
The Reply:
We endorse the view of Mr. Salim.
Reply By Pradeep Kumar:
The Reply:
Dear Sirs,
As per Circular 40/14/2018 dt 06.04.18, it is stated that "an acknowledgement" will be generated (online) with ARN and that is the proof of acceptance of LUT. But when we submitted our application , we have not received such acknowledgement but email confirmation only received. We are not able to print any such said acknowledgment from our portal. Now, Land customs authority at Nepal border is asking for the acknowledgement to pass the consignment to Nepal

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cknowledgement of LUT.
How to get the acknowledgement of LUT which includes ARN number? please do not tell about application form filled for applying LUT as that is acceptable at border by customs.
Reply By YAGAY and SUN:
The Reply:
Please check the procedure as stated above, you will find the ARN in My Applications. Further, there is no such acknowledgement as you people are asking for. You may write to GSTN in this regard if you are facing such issues at border.
Reply By SANJEEV JADHAV:
The Reply:
Dear Sirs, After submission of LUT, acknowledgement is receiving immediately on screen, which we have to keep for our record. Regarding ARN number for LUT submitted, which will also appears in the downloaded file of Form RFD-11. In that along with all details, status will be showing as "Submitted" and also date of submission. It is enough evidence of submission of LUT. With the help of this, officer at check post can also verify details of submission of LUT in portal.
Reply

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Two Group of Ministers Constituted to consider the issues relating to “Incentivizing digital payments in the GST regime” & “Imposition of Cess on Sugar under GST”
GST
Dated:- 5-5-2018

Subsequent to the decisions taken in the 27th GST Council meeting held on (04.05.2018), two Group of Ministers (GoMs) have been constituted.
The first GoM shall consider the issues relating to “Incentivizing digital payments in the GST regime”. Shri Sushil Kumar Modi, Deputy Chief Minister, B

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FIRST CASE ON ANTI-PROFITEERING PROVISIONS IN GST
By: – Dr. Sanjiv Agarwal
Goods and Services Tax – GST
Dated:- 5-5-2018

The provisions on anti-profiteering are contained in the GST law as per following provisions:
CGST Act, 2017
Section 171 on Anti-profiteering measures.
IGST Act, 2017
Section 20 which stipulate that provisions of the GST Act, 2017 shall apply mutatis mutandis to IGST Act.
UTGST Act, 2017
Section 21 which stipulate that provisions of GST Act, 2017 shall apply mutatis mutandis to UTGST Act.
SGST Act, 2017
Section 171 on Anti-profiteering measures.
The Rules for Anti Profiteering are contained in Chapter XV (Rule Nos. 122 to 137) of the Central Goods and Services Tax Rules, 2017.
The GST law contains a provision on anti-profiteering measure as a deterrent for trade and industry to enjoy unjust enrichment in terms of profit arising out of implementation of Goods and Services Tax in India, i.e., anti-profiteering measure would obligate the busin

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n.
The authority constituted by Central Government will have powers to impose a penalty in case it finds that the price being charged has not been reduced consequent to reduction in rate of tax or allowance of input tax credit.
During the two years of initial transition into GST regime, Anti-Profiteering Authority (APA) will step in and may ask businesses that have not passed on full benefits of reduced tax burden to consumers to make up for such benefit, with interest.
Judicial Pronouncement
There provisions have been subjected to judicial scrutiny by the National Anti-Profiteering Authority (NAA) set up under the CGST Act, 2017 recently in Dinesh Mohan Bharadwaj v. M/s Vrandavaneshwree Automotive Pvt. Ltd [ 2018 (4) TMI 1377 – THE NATIONAL ANTI-PROFITEERING AUTHORITY ] vide Order dated 27.03.2018 [Case No. 1/2018 instituted on 27.02.2018]
Important Dates
01.11.2017
Application filed before Standing Committee [Rule 123 (1)]
28.04.2017
Vehicle booked
11.07.2017
Vehicle del

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f the reduction in tax rate after GST to the applicant by way of reduction in the price of the car by ₹ 10,550.
"We find that the respondent (Honda car dealer) has given details of all the basic components of the price of the car purchased by the applicant … and benefit of ₹ 10,550 on account of reduction of tax by about 2 per cent viz. from 31.254 percent (pre GST) to 29 percent (post GST) has already been passed on to the applicant and the amount of ₹ 10,550 is inclusive of the ITC (input tax credit) … therefore, no additional benefit on account of ITC is required to be paid by the respondent”.
It was thus held that the respondent (Honda car dealer) has not contravened the provisions of Section 171 of the CGST Act, 2017, and accordingly, there was no merit in the application of Dinesh Mohan Bhardwaj (complainant or applicant), which was filed under Rule 128 of the CGST Tax Rules, 2017 and the same was dismissed.
Details of Complaint
The complainant had

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o Alabaster Silver (base colour), as per the applicant's request. It was also put on record that on GST being implemented w.e.f. 1.7.2017, ex-showroom price was subsequently changed which was charged from the customer.
The car dealer also submitted the following documents to substantiate its stand:
* Audited Balance Sheet & Profit & Loss account for the FY 2016-17,
* Copies of purchase invoices from April to September, 2017,
* Copies of retail invoices from April to September, 2017,
* Copies of returns filed with the Commercial Taxes Department from April to June, 2017,
* Price Lists (pre-GST & post-GST), and
* Copies of Service Tax returns from April to September, 2017.
DGSG Stand
Director General of Safeguards (DGSG) investigated the complaint on the following two grounds:
* Whether there was substantial reduction in the rate of tax, and
* Whether the benefit of reduction in tax rate had been passed on to the applicant.
DGSG found that the dealer's margin was

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–
Total (A)
14.625
–
CST(B=0.05% on A)
0.007
–
Total (C= A+B)
14,632
–
VAT (D) = (14.5% on C)
16,622
–
GST + Cess
–
29
Total tax rate (C+D)
31,254
29
The pre-GST and post -GST ex-showroom prices of the car purchased by the applicant were also worked out by the DGSG as per Table 'B' below:
Table B – Comparative Prices
Particulars
Factor
Pre-GST
(in Rs)
Post-GST
(in Rs)
Basic price of Honda Car Model : WR WR-V.1.2VX MT (i-VTEC)
A
6,59,175
6,58,718
Excise Duty @ 12.5%
B=A*12.5%
82,397
–
NCCD @ 1%
C=A*1%
6,592
–
Auto Cess @ 0.125%
D=A*0.125%
824
–
Infra Cess @1%
E=A*1%
6,592
–
Ex-factory Price
F= Add A to E
7,55,579
6,58,718
CST @ 0.05%
G=F*05%
378
–
Freight
H
4,452
4,260
Transit Insurance
I
121
108
Dealer Landed Price
J=Add F to I
7,60,530
6,63,086
Dealer Margin
K
33,619
33,619
Dealer Price
L=J+K
7,94,149
6,96,705
VAT @ 14.5%
M=L*14.5%
1,15,152
GST+Cess @ 29%
N=L*29%
2,02,044
Ex-showroom price of Alabast

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applicant an ex-showroom price of ₹ 8,98,750/- which correctly included basic price of the car, freight, insurance, dealer's margin etc, and GST @ 29%. Thus, the benefit of reduction in the tax rate was passed on to the applicant by way of reduction in the price of the car of base colour by an amount of ₹ 10,550/-.
The Authority, on benefit of input tax credit, observed that the applicant has not understood the provisions of Section 171 of the CGST Act, 2017 and the DGSG's report in its true spirit and context. The entire scheme of GST is ITC based i.e. the recipient of the goods and services takes credit of GST paid by him on purchase of goods and services and uses such ITC while discharging GST output tax liability on supply of goods and services.
The benefit of ₹ 10,550/- on account of reduction of tax by about 2% viz. from 31.254% (pre-GST) to 29% (post-GST), as discussed above, had already been passed on to the applicant and the amount of ₹ 10,550

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Incidence of GST on providing catering services in train.
002/2018-GST Dated:- 5-5-2018 Assam SGST
GST – States
Assam SGST
Assam SGST
GOVERNMENT OF ASSAM
ORDERS BY THE COMMISSIONER OF STATE TAX, ASSAM
KAR BHAWAN, DISPUR, GUWAHAT1-6
ORDER No. 02/2018-GST
Dated Dispur, the 5th May, 2018.
Subject: Incidence of GST on providing catering services in train.
No. CT/GST-12/2017/62.- Different GST rates are being applied for mobile and static catering in Indian Railways which is presently leading to a situation whereby the same licensee (selected by Indian Railways/IRCTC) supplying the same food would be subjected to different GST rates depending on whether it is mobile or static catering, as also which variant of mobile caterin

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Extension of date for submitting the statement in FORM GST TRAN-2 under rule 117(4)(b)(iii) of the Assam Goods and Services Tax Rules, 2017.
001/2018-GST Dated:- 5-5-2018 Assam SGST
GST – States
Assam SGST
Assam SGST
GOVERNMENT OF ASSAM
ORDERS BY THE COMMISSIONER OF STATE TAX, ASSAM
KAR BHAWAN, DISPUR, GUWAHAT1-6
ORDER No. 01/2018-GST
Dated Dispur, the 5th May, 2018.
Subject: Extension of date for submitting the statement in FORM GST TRAN-2 under rule 117(4)(b)(iii) of the As

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Pratik Satayanarayan Gattani Versus Union of India
GST
2018 (5) TMI 645 – GUJARAT HIGH COURT – TMI
GUJARAT HIGH COURT – HC
Dated:- 5-5-2018
Special Civil Application No. 7129 of 2018
GST
MR. AKIL KURESHI AND MR. B.N. KARIA, JJ.
For The Petitioner : Hiral U. Mehta, Nipun P. Singhvi and Vishal J. Dave, Advs.
ORDER
Akil Kureshi, J. –
Petitioners have challenged the constitutional vires of Section 109 of the Central Goods & Services Tax Act, 2017 as also that of the Gujarat Goods & Services Tax Act, 2017 pertaining to constitution of the Central as well as State Appellate Tribunals. Main contention of the petitioners is that the Act envisages constitution of such Tribunals comprising of one Judicial and two Technical

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Incidence of GST on providing catering services in train.
02/2018-GST Dated:- 5-5-2018 Assam SGST
GST – States
GOVERNMENT OF ASSAM
ORDERS BY THE COMMISSIONER OF STATE TAX, ASSAM
KAR BHAWAN, DISPUR, GUWAHATI-6
Order No. 02/2018-GST
Dated Dispur, the 5th May, 2018.
Subject: Incidence of GST on providing catering services in train.
No. CT/GST-12/2017/62.- Different GST rates are being applied for mobile and static catering in Indian Railways which is presently leading to a situation whereby the same licensee (selected by Indian Railways/IRCTC) supplying the same food would be subjected to different GST rates depending on whether it is mobile or static catering, as also which variant of mobile catering it is [pre-paid (without op

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Extension of date for submitting the statement in FORM GST TRAN-2 under rule 117(4)(b)(iii) of the Assam Goods and Services Tax Rules, 2017.
01/2018-GST Dated:- 5-5-2018 Assam SGST
GST – States
GOVERNMENT OF ASSAM
ORDERS BY THE COMMISSIONER OF STATE TAX, ASSAM
KAR BHAWAN, DISPUR, GUWAHAT1-6
ORDER No. 01/2018-GST
Dated Dispur, the 5th May, 2018.
Subject: Extension of date for submitting the statement in FORM GST TRAN-2 under rule 117(4)(b)(iii) of the Assam Goods and Services Tax Ru

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In Re : Merit Hospitality Services Private Ltd.
GST
2018 (7) TMI 1492 – AUTHORITY FOR ADVANCE RULING – MAHARASHTRA – 2018 (15) G. S. T. L. 439 (A. A. R. – GST)
AUTHORITY FOR ADVANCE RULING – MAHARASHTRA – AAR
Dated:- 5-5-2018
Advance Ruling NO. GST-ARA-22/2017-18/B-29
GST
B.V. Borhade (Member) and 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 the MGST Act”] by Merit Hospitality Services Private Ltd., the applicant is seeking an advance ruling in respect of the following questions :
The company is registered as “Outdoor Caterers” under the GST Act. It was also registered in the same category under service tax regime The company is engaged in the business o

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one by the staff of 'A' Ltd. The menu and the material specifications are mentioned in the contract and also the rate for various items are pre-determined between Merit Hospitality and the company. The billing is done by Merit Hospitality directly to the company on monthly basis and payment is received from the company to Merit Hospitality directly as per the terms of payment mentioned in the contract.
Question: Whether on the facts and circumstances of abovementioned case can the above activity be called as canteen activity and the applicable rate of 5% be charged on our bills?
Case II) The facts mentioned in Case I remains the same except that in addition to supply of food on the request of the client Merit Hospitality Services Pvt. Ltd. also undertake the services of distribution of food for which Merit Hospitality raises separate bill charging 18% GST/SGST
Question : Can both the activities put together i.e. supply and distribution of food to the employees of 'A'

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SEZ area hence no GST is applicable ? or
b) Can Merit Hospitality claim that it is running a canteen in SEZ area hence no GST is applicable? Or
c) Can Merit Hospitality claim that it is running a restaurant in SEZ area and hence applicable GST rate is 5% only?
At the outset we would like to make it clear that the provisions of both the CGST Act and the MGST Act are the same except for certain provisions. Therefore, unless a mention is specifically made to such dissimilar provisions, a reference to the CGST Act would also mean a reference to the same provision under the MGST Act. Further to the earlier, henceforth for the purposes of this Advance Ruling, a reference to such a similar provision under the CGST Act / MGST Act would be mentioned as being under the “GST Act”.
02. FACTS AND CONTENTION – AS PER THE APPLICANT
The submission, as reproduced verbatim, could be seen thus –
“Provisions of law, applicants view point & submissions on issues on which advance ruling is sought.
T

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ed 14.11.2017refers] It is immaterial whether the service is provided by the educational institution itself or the institution outsources the activity to an outside contractor.
It is our contention that the issue of running a canteen for its employees by a company either by itself or through an outside caterer is on the same line and hence should be considered under the same principles where it is clarified that tax rate will be 5% without input tax credit as such services fall under category (i)under column 3 of serial no 7 notification No. 46/2017-CT (Rate) dated 14.11.2017″
03. CONTENTION – AS PER THE CONCERNED OFFICER
The submission, as reproduced verbatim, could be seen thus-
” 1. Case I) Question: Whether on the facts and circumstances of above mentioned case can the above activity be called as canteen activity and the applicable rate of 5% be charged on our bills?
Reply: No
Comments: The activity of canteen is to supply services to beneficial members. In this case it is ag

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ng such services” Considering the above meaning the activity of the dealer cannot be considered as canteen activity as the dealer is in the business of supplying food and beverages to the company on the basis of agreement and hence it is purely outdoor catering service. Further the notification dt. 14.11.2017 has not changed the position of the supply by outdoor caterers given in original notification dt. 28.06.2017 in Clause V. Hence, the activity of the dealer cannot be called as canteen activity and liable to pay tax @ 9% as outdoor caterer.
2. Case 2) Question : Can both the activities put together i.e. supply and distribution of food to the employees of 'A' Ltd. be called as canteen services and applicable rate of 5% be charged on our bills ?
Reply: No
Comment: As above
3. Case 3) Question : Can such circumstances can it still be claimed that Merit Hospitality is running a canteen and the applicable rate of 5% be charged on our bills ?
Reply: No
Comment: As above
4.

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being food or any other article for human consumption or drink, where such supply or service is for cash, deferred payment or other valuable consideration, provided by a restaurant, eating joint including mess, canteen, whether for consumption on or away from the premises where such food or any other article for human consumption or drink is supplied,
The agreement made with Colgate Global Business services Pvt. Ltd. clearly mentions that the arrangement is on principal to principal basis and payment to be made by company directly to the contractor as per annexure B of the agreement. Further it mentions that contractor has agreed to provide catering services to the company at the canteen premises of L & T business park. Further there is no relevance of employees (who are ultimate beneficiary of the catering services) with the contractor as per the terms and conditions of the agreement as supply made by the contractor for valuable consideration is to the company. Hence catering servic

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pplicable rate of 5% be charged on our bills?
M/s larsen & Toubro Grahak Sahakari Saunstha Maryadit.
In this arrangement, though the agreement is made with M/s Larsen & Toubro Grahak Sahakari Saunstha Maryadit., the benefit of the circular No. 28/02/2018 – GST can not be given as same is available if the catering service is provided to the educational institution which runs canteen or mess for its students, faculty and staff. Hence applicable rate will be 9% each under CGST & SGST.
4
4. Case 4) Question :
(a) Can Merit Hospitality claim that since the food is supplied directly to SEZ area hence no GST is applicable? or
(b) Can Merit Hospitality claim that it is running a canteen in SEZ area hence no GST is applicable? or
(C) Can Merit Hospitality claim that it is running a restaurant in SEZ area and hence applicable GST rate is 5% only?
M/s.UBS Business Solutions (India) Pvt. Ltd.
As per the terms and condition of the agreement, the supplier has to provide catering service an

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Sakore, Dy. Commissioner GST(E-639) , LTU 4, Mumbai was present during both the hearings and has furnished a written submission in the matter.
05. OBSERVATIONS
We have gone through the facts of the case. Four situations have been presented before us. We shall study each of these in the sequence as presented. However, the fact common to all, as informed, is that the food is prepared at the applicant's own kitchen and is distributed to various companies at different locations. The situations could be seen thus –
Case I
The company (Merit Hospitality) has entered into a contract for supply of food to the employees of the company say 'A' Ltd. The contract is signed between Merit Hospitality and 'A' Ltd for supply of food. As per the terms of contract Merit Hospitality has to supply the food at 'A' Ltd.'s premises. The distribution of the food is directly done by the staff of 'A' Ltd. The menu and the material specifications are mentioned in the

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art of any service or in any other manner whatsoever, of goods, being food or any other article for human consumption or drink, where such supply or service is for cash, deferred payment or other valuable consideration, provided by a restaurant, eating joint including mess, canteen, neither having the facility of air-conditioning or central air-heating in any part of the establishment, at any time during the year nor having licence or permit or by whatever name called to serve alcoholic liquor for human consumption.
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(ii) Accommodation in hotels, inns, guest houses, clubs, campsites or other commercial places meant for residential or lodging purposes having declared tariff of a unit of accommodation of one thousand rupees and above but less than two thousand five hundred rupees per unit per day or equivalent.
Explanation.- “declared tariff” includes charges for all amenities provided in the unit of accommodation (given on rent for stay) like furniture, air conditioner, refrigera

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Supply, by way of or as part of any service or in any other manner whatsoever in outdoor catering wherein goods, being food or any other article for human consumption or any drink (whether or not alcoholic liquor for human consumption), as a part of such outdoor catering and such supply or service is for cash, deferred payment or other valuable consideration.
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(vi) Accommodation in hotels, inns, guest houses, clubs, campsites or other commercial places meant for residential or lodging purposes having declared tariff of a unit of accommodation of two thousand five hundred rupees and above but less than seven thousand five hundred rupees per unit per day or equivalent.
Explanation.- “declared tariff” 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.
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(vii) Supply, by way of o

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without excluding any discount offered on the published charges for such unit.
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(ix) Accommodation, food and beverage services other than (i), (ii), (iii), (iv), (v), (vi), (vii) and (viii) above.
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We find that under this Notification after amendments uptill now GST @ 5% is chargeable in case of services by a restaurant, eating joint including mess and canteen as per relevant entry produced above.
In order to ascertain whether the activities of the applicant would fall under Sr. No. 7, Heading 9963(i) of the above referred Notification, we would be required to examine as to what a restaurant, eating joint, mess and canteen are.
We find that “restaurant”, as per Cambridge English Dictionary is :
“a place where meals are prepared and served to customers”.
“A place of business where people can choose a meal to be prepared and served to them at a table, and for which they pay, usually after eating.
However we find that with the progress of time and civilization and furthe

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d meals are sold often at a lower than usual price”.
“A place in a factory, office, etc. where employees can buy food and meals at a lower price”.
Further as per general understanding we see while differentiating with a restaurant, that “canteen” is a small cafeteria or snack bar, especially one in a military establishment, school or place of work while “restaurant” is an eating establishment in which diners are served food at a table and it is outside the premises of military establishment, school or place of work.
Thus broadly we find that “a canteen is mostly referred to as an eating place provided by an organization, college, university, military, police, government, for the staff/students workforce. In the present application we find that the applicant has clearly stated that they are not providing services to any college, university, military, police or government but to only business organizations or companies or their employees as per different situations mentioned by the ap

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res that are generally seen in the industrial canteen are as under:-
(1) Industrial canteen is inside the premises of the establishment.
(2) Generally the canteen building have cooking facilities inside it and mostly facilities such as empty LPG cylinder, furniture, refrigerator, water cooler, cooking and serving utensils etc. being all or some of these items are provided by the company on returnable basis in good and proper condition.
(3) Generally water and electricity is also provided by the company on chargeable or maybe non chargeable basis.
(4) Most of the food, snacks or tea and coffee are generally cooked or prepared in tine canteen itself.
(5) The items are sold to the employees directly by the contractor at agreed prices which are mostly subsidized and the sale amounts are collected by the contractor themselves. However prepaid meal vouchers may also be given to employees by the company which are to be accepted by the contractor.
(6) The contractor may be required to se

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n employees and is required to follow statutory provisions as applicable.
Further in reference to eating joint we find that an eating joint is a quick service restaurant within the industry and is a specific type of restaurant that mainly serves fast food cuisine and has minimal table service.
In the same way we find that in common parlance a “mess” is a place where soldiers/police or any other organized force persons eat their food.
On going through the situation as per submissions made by the applicant as per Case-I and corresponding details in respect of this situation claimed to be represented and submitted by the applicant as per copy of submitted agreement between Colgate Global Business P. Ltd. and Merit Hospitality Services P Ltd dated 01.12.2017, we find that the details as per Case-I submitted by the applicant in his Advance Ruling application are not in complete congruence with the details as visible in the agreement referred above and in view of this we will take up the

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ntract entered by Merit Hospitality until various corporate clients.
Case I) The company (Merit Hospitality) has entered into a contract for supply of food to the employees of the company say 'A' Ltd. The contract is signed between Merit Hospitality and 'A' Ltd for supply of food. /Is per the terms of contract Merit Hospitality has to supply the food at 'A' Ltd.'s premises. The distribution of the food is directly done by the staff of' A' Ltd. The menu and the material specifications are mentioned in the contract and also the rate for various items are pre-determined between Merit Hospitality and the company. The billing is done by Merit Hospitality directly to the company on monthly basis and payment is received from the company to Merit Hospitality directly as per the terms of payment mentioned in the contract.
Question: Whether on the facts and circumstances of abovementioned case can the above activity be called as canteen activity and the appl

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nd a company 'A Ltd'. It is not for running a canteen.
    (ii) Food is to be supplied at 'A Ltd.'s premises.
    (iii) The distribution of food is done by the staff of 'A Ltd'. Applicant is only supplying food.
    (iv) The menu, specifications and rate are as per contract of supply of food entered into between the applicant and M/s A Ltd.
    (v) The billing is done by the applicant directly to M/s A Ltd. on monthly basis and the payment is received from M/s A Ltd. as per contract.
Thus as per the above details and discussions it is clearly visible that the service being provided by the applicant would not be covered under Serial No. 7 Heading 9963 (i) of Notification No. 11/2017 as amended.
Now as we find that the services of the applicant are not covered under the above entry of Notification No. 11/2017 where the applicable rate of tax is 5%, therefore we are required to ascertain as to where

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efined as “outdoor caterer” means a caterer engaged in providing services in connection with catering at a place other than his own but including a place provided by way of tenancy or otherwise by the person receiving such services.
From the case details as submitted by the applicant in his application before us, the applicant himself has stated that they are registered as outdoor caterers under the GST Act and that the company is engaged in the business of supply, by way of and as a part of and in any other manner whatsoever of goods, being food and any other article for human consumption or drink. In nutshell that it is providing snacks and food for breakfast, lunch, evening tea and dinner to the employees of various companies and that the food is prepared at their own kitchen and it is distributed to various companies at different locations and it is also visible that the applicant is providing the services at a place which is not his own and is neither provided to him by way of te

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, governmental, commercial or industrial location/s specified by the customer other than for transportation companies, on an ongoing basis; food service concession services, i.e. the provision of operating services by operators of eating facilities such as canteens and cafeterias].
In view of the above classification of the services being provided by the applicant as per Case-I details would be taxable under Serial No. 7 Heading 9963 (v) @ 18% under GST as applicable.
Case II)
The facts mentioned in Case I remains the same except that in addition to supply of food on the request of the client Merit Hospitality Services Pvt. Ltd. also undertake the services of distribution of food for which Merit Hospitality raises separate bill charging 18% GST/ SGST
Question:
Can both the activities put together i.e. supply and distribution of food to the employees of 'A' Ltd. be called as canteen services and applicable rate of 5% be charged on our bills?
In view of the detailed discuss

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e applicant and the Employees Cooperative Society is not changing. Now instead of the company A Ltd., the outdoor catering services are being provided to the Employees Cooperative Society which would be taxable @ 18% only as already discussed in respect of Case-I and Case-II above.
Case IV)
The Merit Hospitality has entered into a contract with a company called say “B” Ltd. “B” Ltd. is having its unit in SEZ area (Special Export Zone). The supply of food is done by Merit Hospitality to the employees of “B” Ltd. and payment for the same is made by the employees of “B” Ltd. directly to Merit Hospitality.
Case IV – Question a)
a) Can Merit Hospitality claim that since the food is supplied directly to SEZ area hence no GST is applicable?
In view of the details given in Case-IV above we would be required to examine the provisions of IGST Act, 2017 and SEZ Act, 2005. We find that Section 16 (1) of the IGST Act relating to 'zero rated supply' reads as under;-
“zero rated supply”

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es an existing Unit, an Offshore Banking Unit and a Unit in an International Financial Services Centre, whether established before or established after commencement of this Act.
Further we find that apart from an existing unit, a unit established in compliance of procedure prescribed in Section 15 of the SEZ Act, 2015 can be called a SEZ unit. Section 15 of the SEZ Act, 2005 is reproduced as under:-
15. (1) Any person, who intends to set up a Unit for carrying on the authorised operations in a Special Economic Zone, may submit a proposal to the Development Commissioner concerned in such form and manner containing such particulars as may be prescribed:
Provided that an existing Unit shall be deemed to have been set up in accordance with the provisions of this Act and such Units shall not require approval under this Act.
15. (2) On receipt of the proposal under sub-section (1), the Development Commissioner shall submit the same to the Approval Committee for its approval.
15. (3) The

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Every appeal made under sub-section (4) shall be in such form and shall be accompanied by a copy of the order appealed against and by such fees as may be prescribed.
15. (7) The procedure for disposing of an appeal shall be such as may be prescribed:
Provided that before disposing of an appeal, the appellant shall be given a reasonable opportunity of being heard.
15.(8) The Central Government may prescribe,-
    (a) the requirements (including the period for which a Unit may be set up) subject to which the Approval Committee shall approve, modify or reject any proposal referred to in sub-section (3);
    (b) the terms and conditions, subject to which the Unit shall undertake the authorised operations and its obligations and entitlements.
15. (9) The Development Commissioner may, after approval of the proposal referred to in sub-section (3), grant a letter of approval to the person concerned to set up a Unit and undertake such operations which the Dev

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5(9) of the SEZ Act.
However in the case details provided by the applicant in Case IV, it is not forthcoming whether 'B Ltd' is an authorized unit in SEZ as per Section 15 (9) of the SEZ Act and as to what are the authorized operations of 'B Ltd' in SEZ and whether supply of food to B Ltd or its employees is covered under authorized operations as allowed/approved by the Development Commissioner. If it is not covered under authorized operations then this supply of food by the applicant to SEZ employees would not be eligible for the benefit of zero rated supply.
Case IV – Question b)
b) Can Merit Hospitality claim that it is running a canteen in SEZ area hence no GST is applicable?
In view of the detailed discussions in respect of situations of Case-I, Case-II and Case-Ill above, it is clear that the applicant cannot claim that they are running a canteen in SEZ. Rather their service would be in the nature of outdoor catering service as per discussions in detail above.

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y of the order, the questions are answered thus:-
Case I
Q. Whether on the facts and circumstances of abovementioned case can the above activity be called as canteen activity and the applicable rate of 5% be charged on our bills?
A. Answered in the negative.
Case II
Q. Can both the activities put together i.e. supply and distribution of food to the employees of 'A' Ltd. be called as canteen services and applicable rate of 5% be charged on our bills?
A. Answered in the negative.
Case III
Q. Under such circumstances can it still be claimed that Merit Hospitality is running a canteen and the applicable rate of 5% be charged on our bills?
A. Answered in the negative.
Case IV
Q.a Can Merit Hospitality claim that since the food is supplied directly to SEZ area hence no GST is applicable?
A.a In view of the findings above the said question cannot be answered.
Q.b Can Merit Hospitality claim that it is running a canteen in SEZ area hence no GST is applicable?
A. b In view

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IN RE: KHILARI INFRASTRUCTURE PRIVATE LIMITED
GST
2018 (9) TMI 545 – AUTHORITY FOR ADVANCE RULING, MAHARASHTRA – 2018 (17) G. S. T. L. 65 (A. A. R. – GST)
AUTHORITY FOR ADVANCE RULING, MAHARASHTRA – AAR
Dated:- 5-5-2018
GST-ARA-04/2017-18/B-28
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 KHILARI INFRASTRUCTURE PRIVATE LIMITED, the applicant, seeking an advance ruling in respect of the applicability of GST on:
1) Determination of GST leviable on operation and maintenance work order given by municipal corporations.
2) Admissibility of ITC (input Credit tax) of purchases against such work order.
3) Determinatio

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business of
a. Construction, erection, commissioning of Sewerage treatment plant.
b. Operation & Maintenance of Sewerage Treatment and Disposal Plants.
as per the Work awarded by various Municipal Corporations / Councils/ Local Authority.
2. During the FY 2016-17 appellant had made the Total Contract Receipts amounting to Rs. 200,89,26,040/-, which included
a. Rs. 1,78,11,70,457/- in respect of civil construction contract work for Solid Waste Management and
b. Rs. 22,77,55,583/ in respect of Operation Maintenance work for Sewerage Treatment and Disposal Plant.
3. During the year under consideration FY 2017-18 Appellant Company has been awarded work order of Operation & Maintenance contract from various Municipal Corporations and the details are as under:
1. NAVI MUMBAI MUNICIPAL CORPORATION (NMMC);
a. Operation & Maintenance of Sewerage Treatment and Disposal Plant at Site Nerul STP Agreement dated 30.11.2017 against Letter of Acceptance vide Ref. No. NMMC/CE/1432/2017 dated 2

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submitted the financials bid for the Operation & Maintenance work order considering the old Indirect Tax Laws wherein, Service Tax was exempt as per Notification 25/2012 dated 20.06.2012 entry no. 12.
On Implementation of GST, 2017 the said Operation & Maintenance work was taxed as per notification no. 11/2017 dated 28.06.2017 and notification no. 20/2017 dated 22.08.2017. However, the Municipal Corporation has disregarded levying of GST on the said work saying it is exempt under section 243 (W). During the course of discussion with the Municipal Corporation the appellant has submitted the local authority copy of relevant portion of the GST Act, 2017 and also the amended portion, however the local authority have rejected the claims made by appellant. As per discussion with NMMC all such contract related to Operation and Maintenance of STP Plant comes under Rule 243 W and Not Applicable for GST. The service of Operation and Maintenance of STP Plant related to Public Interest and no GST

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)/2014-15 As per Annexure – 12.
e. MUNICIPAL COUNCIL (PANDHARPUR); Comprehensive Contract for Operation & Maintenance of Sewerage Treatment and Disposal Plant at Site PANDHARPUR Agreement dated 25.01.2015 against work order vide Ref. No. OUTNO./PNP/WS/19/15 dated 25.01.2015 for Tender vide Ref. No. OUTNO./PNP/WSS/708/14. As per Annexure – 13.
f. PANVEL MUNICIPAL COUNCIL RAIGAD; Comprehensive Contract for Operation & Maintenance of Sewerage Treatment and Disposal Plant at Site PANVEL Agreement dated 09.09.2015 against Letter of Acceptance vide Ref. No. OUTNO./PNP/WS/5233/15 dated 15.09.2015 for Tender vide Ref. No. OUTNO./PNP/ WSS/7/15. As per Annexure -14
II. NAVI MUMBAI MUNICIPAL CORPORATION (NMMC);
Daily O & M of Solid Waste Processing Plant (Compost plant) at Site Turbhe SWM dumping yard site Agreement dated 21.08.2017 against Letter of Acceptance vide Ref. No. NMMC/CE/1572/2017 dated 19.08.2017 for Tender vide Ref. NO. NMMC/CITY ENGINEER/77/2016-17 detailing terms of work for O

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ion 4 page no. 469
Contract Price clause 32. page no. 491
Taxes & Reimbursement of Tax clause no. 70.2 & 71.1 page no. 448
As per the above work Order of Operation & Maintenance of Sewerage Treatment and Disposal Plant, the major portion of work being labor oriented i.e. 95%) of Sewerage Treatment Disposal Plant and balance 5% consumables are Adhesives, Oil & Lubricants.
The Appellate had prepared and submitted the financials bid for the Operation & Maintenance work order considering the old Indirect Tax Laws wherein, Service Tax & VAT was exempt as per Notification no-25/2012 dated entry no. 12.
4. As per the Earlier Indirect Tax Laws i.e. Service Tax (Finance Act,1994) the Operation & Maintenance Service of Sewerage Treatment and Disposal Plant was exempt Under Notification no.25/2012 dated entry no. 12 as per Annexure-3.
5. As per the Goods & Service Tax Act, 2017 notification no. 11/2017 dated 28.06.2017 and notification no. 20/2017 dated 22.08.2017 read as below; complete no

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ng the year. However in spite of repeated reminders the Municipal Corporation/Councils/ Local Authority failed to adhere the same.
03. CONTENTION – AS PER THE CONCERNED OFFICER
The submission, as reproduced verbatim, could be seen thus-
Accordingly, the Para-wise comments on the application filed by M/s. Khilari Infrastructures Pvt. Ltd are as follows:
Sr. No. 1 to 13.- No Comments.
Question -1 -Determination of GST leviable on operation and maintenance work order given by such Municipal Corporation.
Comments:- The application and the documents submitted by them have been examined in light of the provisions for Municipal Corporation / of the CGST Act, 2017. Prior to 01.07.2017, their services i.e. operation and maintenance work were exempt from Service Tax vide Notification No. 25/2012 Service Tax dated 20.06.2012. They are now registered under CGST Act and falling under the jurisdiction of Range-III of Belapur Dn-1. Under GST law, their services attracted CGST under Not. No. 11/

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ear to be correct. As per Not No. 12/2017-Central Tax (Rate) dated with effect from 01.07.2017, pure services (excluding works contract service or other composite supplies involving supply of any goods) provided to the Central Govt, State Govt or Union Territory or local Authority or a Governmental Authority by way of any activity in relation to any function entrusted to a Panchayat under Article 243 W of the Constitution or in relation to any function entrusted to a Municipality under Article 243VV of the Constitution are exempt from tax. It can be seen from the submission of the applicant that they use some consumables such as oil, lubricant etc. As such their services cannot be termed as pure services attracting under Not No. 12/2017 and the applicant will have to pay the GST on the services provided by them. However, their services have been exempted from GST vide Notification No. 2/2018- Central Tax (Rate), dated 25.01.2018 which reads as below;
“Composite supply of goods and ser

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the application, filed by M/s. Khilari Infrastructures Pvt. Ltd, may be rejected for the period from 01.7.2017 to 24.01.2018.
Sr.No. 15:- No Comments as these are facts.
Sr.No. 16 to 18: No Comments.
04. HEARING
The case was taken up for hearing on dt. 30.01.2018 when Sh. Rohidas Sanap, Chief Financial Officer alongwith Sh. Sidddharth Kheria, (C.A.) appeared and they were orally informed that their application was not specific with respect to contract entered into and their queries are very general queries putting the factual position as per contract entered into before the ARA. In view of this they agreed to submit full details and file revised application with complete details latest by 05.02.2018, otherwise their application was liable to be treated as rejected. In view of this, the applicant has filed fresh application on 05.02.2018.
The final hearing was held on 21.02.2018 when Sh. Sidddharth Kheria, (C.A.) along with Sh. Roshan Mene, Accountant appeared and submitted copy of

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r, carrying out the business of Construction, erection, commissioning of sewerage treatment plant and Operation & Maintenance of Sewerage Treatment and Disposal Plants work, which is awarded to them by the various Municipal Corporations/Councils/ Local Authority, as mentioned above. For the year under consideration FY 2017-18 they have been awarded work order of Operation & Maintenance contract by various Municipal Corporations, details of which have been submitted by them. As per their submissions the Operation & Maintenance Service of Sewerage Treatment and Disposal Plant was exempt from service tax under Notification no. 25/2012 dated 20.06.2012 entry no. 12 as per Annexure – 3, of the Erstwhile Finance Act, 1994. They have further submitted that all such Contracts related to Operation & Maintenance of Sewage Treatment Plants (STP) and Solid Waste Management (SWM) are under the purview Rule 243 W of the Constitution of India and therefore should not attract GST. They have also submi

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plicant's responsibility to run the plant effectively using their own Skill set & Manpower. They have also submitted that, on the implementation of GST, 2017 the said Operation & Maintenance work was taxed as per notification no. 11/2017 dated 28.06.2017 and notification no. 20/2017 dated 22.08.2017. However, NMMC has disregarded levying of GST on the said work saying it is exempt under section Rule 243 (W) of the Constitution of India. Similar work orders have been purportedly received by them from other Local Bodies.
They have further cited another work order vide agreement dated 21.08.2017, with NMMC, in respect of Solid Waste Processing Plant (Compost plant) at Site Turbhe SWM dumping yard site, against Letter of Acceptance vide Ref. No. NMMC/CE/1572/2017 dated 19.08.2017 for Tender vide Ref. No. NMMC/CITY ENGINEER (77/2016-17 detailing terms of work for Operation & Maintenance. Wherein they have stated that the Scope of Work and Contract Price (Provisional Sums) are mentioned

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nd Disposal Plant, the major portion of work is labor oriented i.e. 95% and balance 5% consists of consumables I.e. Adhesives, Oil & Lubricants.
The department has contended that it can be seen from the submission of the applicant that they use some consumables such as oil, lubricant etc. As such their services cannot be termed as pure services attracting exemption under Not No. 12/2017 and they will have to pay the GST on the services provided by them. Under GST law, the Applicant's services attract CGST under Not. No. 11/2017-Central Tax (Rate) dated 28.06.2017 @ 9% with effect from 01.07.2017 and @ 6% with effect from 22.08.2017 vide Notification No. 11/2017-Central Tax dated 28.06.2017 as amended vide Notification No. 20/ 2017-CentraI Tax (Rate) dated 22.08.2017. However, vide Exemption Notification No.2/2018 Central Tax (Rate) dated 25.01.2018 this service is exempted with effect from 25.01.2018 provided the value of supply of goods does not exceed 25% of value of composite suppl

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ENCY LIGHTING SYSTEMS..
* As per Para 15.3.1(b) it is the responsibility of the operator to INSTALL CAPACITORS TO REDUCE POWER.
* As per Para 15.3.1(c) REPAIRING AND REPLACING OLD AND WORN OUT PIPES AND BLOWERS AND COMPRESSORS is the responsibility of the operator.
* As per Para 15.3.1(c), REPAIRING AND REPLACING OLD AND WORN OUT PIPES AND BLOWERS AND COMPRESSORS is also the responsibility of the operator.
* As per Para 15.4(b to h), REPLACING DAMAGED PIPES, FITTINGS,VALVES, BEARING, MECHANICAL SEALS, O RING, GASKETS,PUMP IMPELLERS, ETC, by the operator is stated. As per Para 16.2 :- For the work of extension/modification to the sewerage network, improvement to civil structures, etc., the NMMC shall reimburse on the prevailing schedule of rates or the actual cost of procurement by the operator, whichever is lower. NMMC reserves the right to either procure those items of stores or fix a rate contract against which the operator can procure such stores.
* As per Para 20.2, the o

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y repairs, preventive and breakdown maintenance, overhaul, replacements, etc. shall be made during the O&M.
* As per Clause v, the O & M price by the tendered shall include supply of all tools, tackles, spares, oil and lubricants, laboratory chemicals, glassware, chemicals like chlorine, coagulants etc.
* As per Clause vii, The scope of work shall but not limited to the following items: 'Replacement of electrical, mechanical and electronic equipments which become beyond repair'. 'All the equipment even standby supplied, installed and commissioned by the applicant shall be in operational/ functional condition throughout the O&M period.
* As per para i page 142 of their submissions, the operator shall replace electrical and mechanical equipments which become beyond repair.
* As per (j) page 143 under SPARE PARTS it is mentioned that the operator shall keep a reasonable stock of spare parts so that the down time of equipment can be kept within specified limits.
* Und

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ified in the contract.
* As per Para 8.1, THE CONTRACTOR SHALL PROVIDE ALL SUPERINTENDENCE, LABOUR, MATERIALS, PLANT, CONTRACTOR'S EQUIPMENTS AND ALL OTHER THINGS WHETHER OF A TEMPORARY OR PERMANENT NATURE…
* As per Para 12.1, THE Contractor shall be deemed to have satisfied himself as to the correctness and sufficiency of the Tender and of the rates and prices stated in the Bill of Quantities, all of which shall, except insofar as it is otherwise provided in the Contract, cover all his obligations under the contract (including those in respect of the supply of goods, materials, plant or services or of contingencies for which there is a provisional sum) and all matters and things necessary for the proper execution and completion of the Works.
* As per para 37.3, “If, at the time……., the materials or Plant are not ready for inspection or testing ……..,the Engineer determines that the materials of Plant are defective …..
* As per para 40.4, ' The contractor sha

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and (C) there is a 'Formula for Materials Component' Component' at (B) and there is a separate 'Formula for Petrol, Oil and Lubricant (POL) Component at (C). There are also Price Adjustments for Cement Component, for HYSD/TMT steel component, Structural steel component, CI & DI Pipes, Bitumen.
Under the SPECIAL CONDITIONS OF CONTRACT and under the SCOPE OF WORK mentioned in para 2, it is mentioned that “The bid is for the work of …………..The work to be carried out…………..shall …………..include all labour, material, tools, plants, …………..
From the above reading of the contracts, copies of which have been submitted by the applicant themselves, it is very clear that their services are not pure services as contested by them to claim exemption. NMMC's contracts envisage replacement of mechanical and electrical equipments, installation of high efficiency lighting systems, oil and lubricants, laboratory chemicals, glassware, etc. In the CIDCO contrac

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tracts are not forthcoming), it is not difficult to come to a conclusion that the applicant has entered into a contract with the local bodies for both, supply of goods and also supply of materials and therefore there is no question of the same being considered as pure services sontracts.
Notification No. 11/' 2017-Central Tax (Rate) dated 28th June, 2017 had notified levy of central tax, on the intra-State supply and as per Sr. No. 3, Heading 9954, (iii) of the said Notification, “construction services other than those mentioned at (i) and (ii)” of the said Sr. No. 3, Heading 9954 were leviable to tax @ 9%. This Notification was amended by Notification No. 20/2017-Central tax (Rate) dated 22.07.2017, wherein the tax rate was reduced to 6%. Notification No. 20/2017 amended the description mentioned at Sr. No. 3 Heading 9954 (iii) from “construction services other than those mentioned at (i) and (ii)” TO “composite supply of works contract as defined in clause (119) of section 2 of

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g, Group Service Code (Tarif)
Description of Services
Rate (per cent.)
Condition
3
Chapter 99
Pure Services (excluding works contract service or other composite supplies involving supply of any goods) provided to the Central Government, State Government or Union Territory or local authority or a Governmental authority by way of any activity in relation to any function entrusted to a Panchayat under Article 243G of the Constitution or in relation to any function entrusted to a Municipality under Article 243W of the Constitution
NIL
NIL
However on the basis of detailed discussions and findings above, it is very clear that the services provided by the applicant are not pure services and rather involve supply of materials and consumables, the supply which is in the nature of composite supply and works contract, is not exempt from levy of GST as per Notification No, 12/2017 and is therefore clearly taxable at the rates discussed above.
However with effect from 25.01.2018 it is see

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Tax (Rate) dated 25.01.2018, provided the value of supply of goods does not exceed 25% of value of composite supply.
Thus we see that with effect from 25.01.2018, the applicant can avail the benefit of the above said Exemption Notification No.2/ 2018 Central Tax (Rate) dated 25.01.2018 only if the value of supply of goods does not exceed 25% of value of composite supply. A fact to be noted from the submissions made by the Applicant, is that they themselves were aware that, on implementation of GST, 2017 the said supply of Operation & Maintenance work was taxable as per notification no. 11/2017 dated 28.06.2017 and notification no. 20/2017 dated 22.08.2017. However, the Municipal Corporation has disregarded levying of GST on the said work saying it is exempt and have rejected the claims made by appellant. As regards the claim of the Municipal authorities that the services under reference are covered by Article 243W of the Constitution and hence exempt from GST is not sustainable and is

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t along with the services rendered they also supply to the Local Bodies, spares, materials and consumables such as oil, lubricant etc. Hence their services cannot be termed as pure services attracting exemption as per sr.No .3 of under Noti. No. -12/2017 and the applicant would have to pay the GST on the services provided by them to such Local Bodies. This would answer their query regarding liability to pay GST on composite supply of services/ goods under work orders received from various local bodies. It appears that this ARA has been filed not because the applicant had doubts regarding levy of GST but because the Local bodies have refused to pay them the said GST.
With respect to their query' regarding availability of input tax credit on purchases against such work order, Section 16 of the CGST Act, 2017, states that “Every registered person shall, subject to such conditions and restrictions as may be prescribed and in the manner specified in section 49, be entitled to take cred

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f documents title to goods otherwise; 
(c) subject to the provisions of section 41, the tax charged in respect of such supply has been actually paid to the Government, either in cash or through utilisation of input tax credit admissible in respect of the said supply; and
(d) he has furnished the return under section 39:
Provided that where the goods against an invoice are received in lots or instalments, the registered person shall be entitled to take credit upon receipt of the last lot or instalment:
Provided further that where recipient fails to pay to the supplier of goods or services or both, other than the supplies on which tax is payable on reverse charge basis, the amount towards the value of supply along with tax payable thereon within a period of one hundred and eighty days from the date of issue of invoice by the supplier, an amount equal to the input tax credit availed by the recipient shall be added to his output tax liability, along with interest thereon, in such

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les 36 to 45 of the CGST Rules, 2017, we are of the opinion that the applicant is    Credit for purchases made against the said work orders entered into by them.
05. In view of the extensive deliberations as held hereinabove, we pass an order as follows:
ORDER
(under section 98 of the Central Goods and Services Tax Act, 2017 and the Maharashtra Goods and Services Tax Act, 2017)
NO. GST-ARA-04/2017-18/B-28
Mumbai, dt. 05.05.2018
For reasons as discussed in the body of the order, the questions are answered thus –
Question -1 -Determination of GST leviable on operation and maintenance work order given by such Municipal Corporation.
Answer :- Under GST Act, 2017, their services attracted CGST & SGST @ 9% each with effect from 01.07.2017 and CGST & SGST @ 6% each with effect from 22.08.20171 Post 25.01.2018, their services would be exempt only subject to fulfilment of conditions that the value of supply of goods does not exceed 25% of value of composite supply.
Question-

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Railway track maintenance contracts taxed at 18% GST under Serial No. 3(ii) of Rate Notification.
Case-Laws
GST
Rate of GST – The works contract service of maintaining railway track as per th

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GST Council Reviews Digital Transaction Tax Rates, Proposes Sugar Cess to Support Industry and Boost Digital Payments.
News
GST
27th GST council meeting discusses change in GST rate for digit

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GST Network Alters Shareholding Pattern to Boost Efficiency and Governance; Stakeholder Details Remain Undisclosed.
News
GST
Change in the shareholding pattern of GSTN
TMI Updates – Highl

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GST Council Approves New Return Filing Design for Simpler, User-Friendly Tax Compliance Following IT Simplification Recommendations.
News
GST
GST Council approves principles for filing of new

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Government Clarifies 'Part B' of GST E-way Bill: No Grounds for Seizing Goods and Vehicles for Non-compliance.
Case-Laws
GST
GST e-way bill-01 – non furnishing of the details of conveyance in 'Part B' of GST e-way bill-01 – once the Government itself has clarified the situation by allowing the transporter/dealer to fill up 'Part B' of the e-way bill when the goods are reloaded in a vehicle which is meant for delivery to the consignee, there remain no reasons to seized the goods and the

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27th GST council meeting discusses change in GST rate for digital transactions and imposition of Sugar Cess
GST
Dated:- 4-5-2018

1. Incentive to promote Digital Transactions:
(a) Keeping in view the need to move towards a less cash economy, the Council has discussed in detail the proposal of a concession of 2% in GST rate [where the GST rate is 3% or more, 1% each from applicable CGST and SGST rates] on B2C supplies, for which payment is made through cheque or digital mode, subjec

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Change in the shareholding pattern of GSTN
GST
Dated:- 4-5-2018

The Goods and Services Tax Network – Special Purpose Vehicle (GSTN-SPV) was created as a private limited, not-for-profit company under Section 25 of the Companies Act, 1956 (Section 8 of the Companies Act, 2013) by Govt. of India on 28th March, 2013 with an objective to provide shared IT infrastructure and services to Centre and States Governments, tax payers and other stakeholders for implementation of Goods and Services Tax (GST) in the country.
Presently, the Central Government and State Government are holding 24.5% equity shares respectively and the remaining 51% are held by non-Governmental institutions and through various mechanisms, GSTN is under strategi

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GST Council approves principles for filing of new return design based on the recommendations of the Group of Ministers on IT simplification
GST
Dated:- 4-5-2018

GST Council today in its 27th meeting approved principles for filing of new return design based on the recommendations of the Group of Ministers on IT simplification. The key elements of the new return design are as follows –
* One monthly Return: All taxpayers excluding a few exceptions like composition dealer shall file one monthly return. Return filing dates shall be staggered based on the turnover of the registered person to manage load on the IT system. Composition dealers and dealers having nil transaction shall have facility to file quarterly return.
Unidire

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e system based on invoices uploaded by his sellers. Taxpayer shall be also given user friendly IT interface and offline IT tool to upload the invoices.
No automatic reversal of credit: There shall not be any automatic reversal of input tax credit from buyer on non-payment of tax by the seller. In case of default in payment of tax by the seller, recovery shall be made from the seller however reversal of credit from buyer shall also be an option available with the revenue authorities to address exceptional situations like missing dealer, closure of business by supplier or supplier not having adequate assets etc.
Due process for recovery and reversal: Recovery of tax or reversal of input tax credit shall be through a due process of issuing

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by which time new return software would be ready. In stage 2, the new return will have facility for invoice-wise data upload and also facility for claiming input tax credit on self declaration basis, as in case of GSTR 3B now.
During this stage 2, the dealer will be constantly fed with information about gap between credit available to them as per invoices uploaded by their sellers and the provisional credit being claimed by them. After 6 months of this phase 2, the facility of provisional credit will get withdrawn and input tax credit will only be limited to the invoices uploaded by the sellers from whom the dealer has purchased goods.
Content of the return and implementation: Return shall be simplified also by reducing the content/info

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Legal Services and liability
Query (Issue) Started By: – Alkesh Jani Dated:- 4-5-2018 Last Reply Date:- 10-5-2018 Goods and Services Tax – GST
Got 10 Replies
GST
Sir,
The Standing Counsel providing legal service i.e. to say representational service, to the Govt. Department or to the Board and bill is raised in the name of HOD of the Govt. Department. Now the query is
Q.1. Whether this activity falls under Section 9 (3) or 9(4) of CGST Act,2017?
Q.2. If it falls under Section 9(3), then Govt. Department is required to take registration and pay appropriate GST on RCM basis?
Q.3. If the answer to Q.2 above is “Yes” and if Department has not obtained registration then SCN is required to be issued to HOD or DDO (Drawing and Disb

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o regiister under GST Act and pay the gist on RCM basis. This is my opinion.
Reply By Alkesh Jani:
The Reply:
Sir, Thanks for reply, if RCM is restricted to business entity only,then will that services will fall under Section 9(4) of CGST, Act, 2017? (as per definition "person" includes Govt.) and as there is no exemption in this regards.
Reply By KASTURI SETHI:
The Reply:
The 25th Goods and Services Tax (GST) Council meeting recommended the Central Government to exempt legal services provided to Government, Local Authority, Governmental Authority and Government Entity.
Read more at: http://www.taxscan.in/legal-services-provided-govt-entities-service-providing-information-rti-act-exempted/16379/
Reply By YAGAY and SUN:
The R

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uncil. As there is no notification issued in this regards, so recommendation only cannot be the base of exemption.
Second query can be raised is, if legal services are under RCM for business entity, then will it be under forward charge for Charitable Trust, Society, NGOs, non-profit companies, which are not business entity, and can be covered under Section 9(1) of CGST Act,2017.
I am raising these queries just to enrich my knowledge.
Thanks
Reply By KASTURI SETHI:
The Reply:
Sh.Alkesh Jani Ji,. Logically legal services should come under "forward charges" for the categories you have mentioned but I could not trace out the basis. Secondly, notification must have been issued by now because yesterday 27th meeting has been held. I

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