New Draft Circular Clarifies GST Issues, Offers Guidance on Compliance, Updates Procedures for Consistent Law Application.
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GST
Clarifications of certain issues under GST – Draft Circular
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Clarifications of certain issues under GST
GST
Dated:- 14-6-2018
Draft Circular No. 48/22/2018-GST
F. No. CBEC/20/16/03/2017-GST
Government of India
Ministry of Finance
Department of Revenue
Central Board of Indirect Taxes and Customs
GST Policy Wing
New Delhi, Dated the 14th June, 2018
To,
The Principal Chief Commissioners/ Chief Commissioners/Principal Commissioners/ Commissioners of Central Tax (All)/
The Principal Directors General/ Directors General (All)
Madam/Sir,
Subject: Clarifications of certain issues under GST- regarding
Representations have been received seeking clarification on certain issues under the GST laws. The same have been examined and the clarifications on the same are as below:
Sl. No.
Issue
Clarification
1.
Whether services of short-term accommodation, conferencing, banqueting etc. provided to a Special Economic Zone (SEZ) developer or a SEZ unit should be treated as an inter-State supply (under section 7(5)(b) of the IGS
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GST Act is a specific provision relating to supplies of goods or services or both made to a SEZ developer or a SEZ unit, which states that such supplies shall be treated as inter-State supplies.
1.4 It is therefore, clarified that services of short term accommodation, conferencing, banqueting etc., provided to a SEZ developer or a SEZ unit shall be treated as an inter-State supply.
2.
Whether the benefit of zero rated supply can be allowed to all procurements by a SEZ developer or a SEZ unit such as event management services, hotel and accommodation services, consumables etc?
2.1 As per section 16(1) of the IGST Act, “zero rated supplies” means supplies of goods or services or both to a SEZ developer or a SEZ unit. Whereas, section 16(3) of the IGST Act provides for refund to a registered person making zero rated supplies under bond/LUT or on payment of integrated tax, subject to such conditions, safeguards and procedure as may be prescribed. Further, as per the second proviso to r
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on 17(5) of the CGST Act, if event management services, hotel, accommodation services, consumables etc. are received by a SEZ developer or a SEZ unit for authorised operations, as endorsed by the specified officer of the Zone, the benefit of zero rated supply shall be available in such cases to the supplier.
3.
Whether independent fabric processors (job workers) in the textile sector supplying job work services are eligible for refund of unutilized input tax credit on account of inverted duty structure under section 54(3) of the CGST Act, 2017, even if the goods (fabrics) supplied are covered under notification No. 5/2017-Central Tax (Rate) dated 28.06.2017?
3.1 Notification No. 5/2017-Central Tax (Rate) dated 28.06.2017 specifies the goods in respect of which refund of unutilized input tax credit (ITC) on account of inverted duty structure under section 54(3) of the CGST Act shall not be allowed where the credit has accumulated on account of rate of tax on inputs being higher than
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GST Registration
Query (Issue) Started By: – GEE LIMITED Dated:- 14-6-2018 Last Reply Date:- 25-6-2018 Goods and Services Tax – GST
Got 4 Replies
GST
The party is liable to pay GST from July 2017 onwards but GST registration has been taken from 01.04.2018.
How would they submit the late returns from July 2017 to March 2018.
Is it possible that the date of commencement of the business can be amended on the GST portal.
Reply By Alkesh Jani:
The Reply:
Sir,
In this regards, my vie
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GST Query with regard to Training and Education Services
Query (Issue) Started By: – sujit ghosh Dated:- 14-6-2018 Last Reply Date:- 25-6-2018 Other Topics
Got 2 Replies
Indian Laws
I run a training consultancy firm in Kolkata ( Legal entity is partnership firm) and is registered for GST. Have conducted a training for a batch ten people from Bhutan for a duration of seven days in Delhi against which remuneration was credited to the Company's current account .The account transfer
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Amended GST Rule 138: No E-Way Bill Required for Transporting Empty LPG Cylinders for Non-Supply Purposes.
Act-Rules
GST
No e-way bill is required to be generated – where empty cylinders for
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Anti-Profiteering Authority Enforces Amended GST Rule 133 to Curb Unfair Pricing, Enhance Transparency, and Protect Consumers.
Act-Rules
GST
Order of the Anti Profiteering authority – GST Rul
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50% of Cess u/s 54(5) of GST Compensation Act 2017 Must Go to Consumer Welfare Fund.
Act-Rules
GST
Consumer Welfare Fund. – an amount equivalent to fifty per cent. of the amount of cess deter
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Refund of Tax to Specified Persons Under GST Act: Invoice Value Restriction Removed Retroactively from July 1, 2017.
Act-Rules
GST
Refund of tax to certain persons – specified person u/s 55 –
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GST Rules Amended: Retrospective Revision of ITC Refund Formula for Inverted Duty Structure from July 1, 2017.
Act-Rules
GST
Application for refund of ITC on on account of inverted duty struc
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Imported Goods Returned to Overseas Party – IGST Claim
Query (Issue) Started By: – Praveen Nair Dated:- 14-6-2018 Last Reply Date:- 17-6-2018 Goods and Services Tax – GST
Got 4 Replies
GST
Dear Experts
Goods were imported by paying IGST, now the material is rejected and is to be returned to the exporter overseas. How do we get refund of the IGST amount?
Do we have to export and claim IGST?
Kindly suggest
Regards | Pravin Nair
Reply By MUKUND THAKKAR:
The Reply:
Sir,
please refer refund condition as per GST law. as per my view you have take credit of IGST instated of refund procedure.
Reply By Alkesh Jani:
The Reply:
Sir,
In this regards, Please refer Notification No. 36/95-Cus (NT) dated 26/05/1995 as amended and lastly it was amended vide Notification No.57/2017-Cus (NT) dated 29.06.2017.
My point of view is that you need to claim drawback and not refund as it is re-exportation.
Our experts may correct me if mistaken.
Thanks
Reply By YAGAY and SUN:
The Rep
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ccountant Certificate for not passing on the burden to others
All relevant documents to substantiate their claim for Unjust enrichment like Balance Sheet, Schedule etc
Processing of Claims
The refund claims are covered under Section 27 of Customs Act, 1962, which dwells in detail as to how the refund claims are to be considered for sanctioning to the claimants.
The Important points for considering the sanction of refund:
Limitation
This point taken care of application of section which mandates that every refund claim has to be filed within 06 months from the date of payment. Refund Claims received after the statutory period of 06 months are not entertained as it is barred by limitation.
Eligibility
The eligibility of the refund of an assessed document is studied whether the assessed documents is re-assessed for claiming the benefit of notification, different rate of duties, revising the valuation, changing the classification and revising the duty calculation.
Scrutiny of claim
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ginal Sales Invoices, alongwith list containing Invoice No., Date, Amount of ST/VAT paid on imported goods for which Refund is claimed.
Calculation / Worksheet
Self Declaration
All original challans evidencing payment of Sales Tax /VAT with detail of invoices
Original Chartered Accountant Certificate
All relevant documents to substantiate their claim for Unjust enrichment.
How to apply
The refund application has to be filed within one year from the date of payment of Customs duty i.e. within one year of TR 6 Challan date. Only one refund application for one importer in a month is permitted. The application filled in all respects has to be submitted to Appraising Refund Section of Kolkata Customs House and obtain a dated acknowledgement.
Processing
The TA/STA of CRC IIA/B receives the refund application and registers the refund claim and allots one unique number for the same. He submits the refund file on the same/subsequent day to AC for his perusal. After the AC/CRC, signs as
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GST Practitioner Exam Deadline Extended from 12 to 18 Months for Registered Sales Tax Practitioners and Tax Return Preparers.
Act-Rules
GST
Provisions relating to a goods and services tax pra
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Input Tax Credit Reversal Exemption for Recipient Payments on Supplier's Behalf Clarified in GST Section 37 Amendment.
Act-Rules
GST
Reversal of input tax credit (ITC) in the case of non-paym
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What is penalty for RCM not charged under GST ?
Query (Issue) Started By: – nagendra v Dated:- 14-6-2018 Last Reply Date:- 28-6-2018 Goods and Services Tax – GST
Got 3 Replies
GST
Sir/Madam,
I want to know the penalty or causes for ignoring/omitting GST taxes under Reverse Charge mechanism
please help me with this issue
Thank you
Reply By KASTURI SETHI:
The Reply:
Read Section 122 (2) (a) & (b) of CGST Act, 2017. It is minimum 10,000/- or equal to the amount of tax evaded, w
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ITC Cess refund on export of car
Query (Issue) Started By: – saket s Dated:- 14-6-2018 Last Reply Date:- 28-6-2018 Goods and Services Tax – GST
Got 4 Replies
GST
Hi,
Need some input under following scenario.
We locally purchase cars (at GST 28% + Cess 22% = 50%) and export the same. We do not have any local sales of cars, thus, we have accumulated huge ITC credit of cess, and hence we need to fully claim the compensation Cess as refund. For ITC refund the residual rule 89(4) is applicable in our case. However the formula prescribed under rule 89(4) “Refund Amount = (Turnover of zero-rated supply of goods + Turnover of zero-rated supply of services) x Net ITC ÷ Adjusted Total Turnover” reduces our ITC refund substantial
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Letter of Underdtaking
Query (Issue) Started By: – HABEEB M Dated:- 14-6-2018 Last Reply Date:- 28-6-2018 Goods and Services Tax – GST
Got 3 Replies
GST
To renew our LUT for 18-19, thru' GST portal, Not showing LUT option in USER SERVICE in menu…
how to do or any alternative link..
Reply By Kishan Barai:
The Reply:
It would occure via User Services -> Furnish your letter of Undertaking -> upload old LUT -> hit tick , tick , tick, ✓✓✓, enter two witness
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Change of email and mobile number of the authorized signatory by taxpayers with assistance from the jurisdictional tax officer under GST system
GST
Dated:- 14-6-2018
Complaints are being received from taxpayers that the intermediaries who were authorized by them to apply for registration on their behalf had used their own email and mobile number during the process. They are now not sharing the user credentials with the taxpayer on whose behalf they had done the registration in the first place and the taxpayer is at their mercy.
With a view to address this difficulty of the taxpayer, a functionality to update email and mobile number of the authorized signatory is available in the GST System. The email and mobile number can be
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“Ice Cream Making Machine” Classified Under Tariff Heading 84.18, GST Rate Adjusted per Customs Tariff Act, 1975.
Case-Laws
GST
The product “Ice Cream Making Machine” is classifiable unde
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GST Applies to Supplies for Ocean-Going Merchant Vessels, Indian Naval Ships, and Coast Guard Ships. No Exemption Granted.
Case-Laws
GST
The applicant are not exempted from tax under GST on t
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Whole Pulse Grains and Cereals with Minimal Processing Classified as Agricultural Produce, Retain Essential Characteristics for Market Suitability.
Case-Laws
GST
Whole pulse grains such as whole gram, rajma etc. and ‘cereal’ on which no further processing is done or such processing is done as is usually done by a cultivator or producer which does not alter its essential characteristics but makes it marketable for primary market, fall under the definition of agriculture produce.
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Groundnuts, turmeric, and ginger minimally processed for market classified as agricultural produce under GST rules.
Case-Laws
GST
GST – groundnuts with shell, turmeric and ginger on which no further processing is done or such processing is done as is usually done by a cultivator or producer which does not alter its essential characteristics but make it marketable for primary market would fall within the definition of agriculture produce.
TMI Updates – Highlights, quick notes, marque
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GST Classifies Pulses, Jaggery, and Processed Dry Fruits as Non-Agricultural Produce for Tax Purposes.
Case-Laws
GST
GST – Pulses (commonly known as ‘Dal’) (de-husked or split), jaggery,
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High Seas Sales Governed by Customs, Not GST, Says Circular No. 33/2017-Cus Issued on August 1, 2017.
Case-Laws
GST
GST – High Seas Sales – place of supply – Central Board of Excise and Custo
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Clarifications of certain issues under GST– regarding
48/22/2018 Dated:- 14-6-2018 CGST – Circulars / Ordes
GST
Circular No. 48/22/2018-GST
F. No. CBEC/20/16/03/2017-GST
Government of India
Ministry of Finance
Department of Revenue
Central Board of Indirect Taxes and Customs
GST Policy Wing
New Delhi, Dated the 14th June, 2018
To,
The Principal Chief Commissioners/ Chief Commissioners/Principal Commissioners/ Commissioners of Central Tax (All)/
The Principal Directors General/ Directors General (All)
Madam/Sir,
Subject: Clarifications of certain issues under GST- regarding
Representations have been received seeking clarification on certain issues under the GST laws. The same have been examined and the clarifications on the same are as below:
Sl. No.
Issue
Clarification
1.
Whether services of short-term accommodation, conferencing, banqueting etc. provided to a Special Economic Zone (SEZ) developer or a SEZ unit should be treated as an inter-State su
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instant case, section 7(5)(b) of the IGST Act is a specific provision relating to supplies of goods or services or both made to a SEZ developer or a SEZ unit, which states that such supplies shall be treated as inter-State supplies.
1.4 It is therefore, clarified that services of short term accommodation, conferencing, banqueting etc., provided to a SEZ developer or a SEZ unit shall be treated as an inter-State supply.
2.
Whether the benefit of zero rated supply can be allowed to all procurements by a SEZ developer or a SEZ unit such as event management services, hotel and accommodation services, consumables etc?
2.1 As per section 16(1) of the IGST Act, “zero rated supplies” means supplies of goods or services or both to a SEZ developer or a SEZ unit. Whereas, section 16(3) of the IGST Act provides for refund to a registered person making zero rated supplies under bond/LUT or on payment of integrated tax, subject to such conditions, safeguards and procedure as may be prescribed. F
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re, subject to the provisions of section 17(5) of the CGST Act, if event management services, hotel, accommodation services, consumables etc. are received by a SEZ developer or a SEZ unit for authorised operations, as endorsed by the specified officer of the Zone, the benefit of zero rated supply shall be available in such cases to the supplier.
3.
Whether independent fabric processors (job workers) in the textile sector supplying job work services are eligible for refund of unutilized input tax credit on account of inverted duty structure under section 54(3) of the CGST Act, 2017, even if the goods (fabrics) supplied are covered under notification No. 5/2017-Central Tax (Rate) dated 28.06.2017?
3.1 Notification No. 5/2017-Central Tax (Rate) dated 28.06.2017 specifies the goods in respect of which refund of unutilized input tax credit (ITC) on account of inverted duty structure under section 54(3) of the CGST Act shall not be allowed where the credit has accumulated on account of ra
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M/s. Mangalore Ganesh Beedi Works Versus Commissioner of GST & Central Excise
Service Tax
2018 (6) TMI 675 – CESTAT CHENNAI – TMI
CESTAT CHENNAI – AT
Dated:- 14-6-2018
Appeal No. ST/40939/2018 – Final Order No. 41801 / 2018
Service Tax
Hon'ble Ms. Sulekha Beevi C.S., Member ( Judicial )
Sh. S.K.Venugopala Rao, Chartered Accountant for the Appellant
Shri B. Balamurugan, AC (AR) for the Respondent
ORDER
Brief facts are that the appellants were issued show cause notice alleging that the credit availed on two input service distributor (ISD) invoices dated 14.2.2011 for Rs. 60,550/- and another dated 5.10.2011 for Rs. 52,390/- is not eligible for credit as these invoices did not contain the mandatory details. After due p
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ubmitted that the appellant had availed the services of real estate agent for purchase of land from real estate agent and credit was availed to the tune of Rs. 60,550/- in this regard. Further, service was received for settling up dispute for which an amount of Rs. 51,500/- was availed as credit. For the mere reason that the invoices did not contain the necessary particulars of the service provider, the department has sought to deny the credit. He submitted that the appellant had furnished the input service distributor invoices as well as the details of the credit availed which has not been considered by the authorities below. He adverted to proviso to Rule 9(2) and argued that in case of invoices not containing necessary particulars, the A
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the services are for GTA purpose which does not match with the contention raised by the appellant. On this ground, the authorities below have rightly denied the credit as well as imposed penalty.
4. Heard both sides.
5. At the outset, it has to be stated that the appellant though has argued in detail with regard to the eligibility of credit, has then submitted that they are confining their contest to the penalty imposed. On perusal of the show cause notice, it is seen that the only allegation raised is that the invoices issued by the service provider did not contain necessary details. It is also seen from the records that the Range Officer, Palayamkottai was called for to scrutinize and report about the said two invoices. Nothing is brou
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Force Motors Ltd. Versus CGST & CE, Ujjain
Central Excise
2018 (6) TMI 786 – CESTAT NEW DELHI – TMI
CESTAT NEW DELHI – AT
Dated:- 14-6-2018
Appeal No. E/50962/2018-SM – Final Order No. 52241/2018
Central Excise
Hon'ble Mrs. Archana Wadhwa, Member ( Judicial )
Shri S.A. Gundecha, Advocate – for the appellant
Shri P. Junega, DR – for the respondent
ORDER
Per Archana Wadhwa
After hearing both the sides, I find that the appellant is engaged in the manufacture of motor vehicles and were availing the benefit of Cenvat credit of duty paid on various inputs.
2. Its so happened that during the period Jan. 2001 and Feb. 2001, the appellant received certain duty paid inputs which were duly entered in their records. As per the appellant, the credit could not be availed during the said period, immediately on receipt of the inputs but the same was availed in the month of March 2001. With effect from 1.3.2001, the provisions of Rule 57AB, which enabled the appellant to ava
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of the original adjudicating authority was upheld by Commissioner (Appeals) and hence the present appeal.
4. After hearing both the sides and after going through the impugned order, I find that the only reason with the Revenue to deny the credit is that the new amended provisions of 57AB, introduced with effect from 1.3.2001, allowed the credit of duty paid on the inputs received in the factory on or after 1.3.2001. Inasmuch as the inputs in question were received in Jan. and Feb. 2001, Revenue was of the view that the appellant would not be entitled to the credit.
I note that when the inputs were received in the assessee's factory in Jan. and Feb. 2001, they were admittedly entitled to avail the credit of duty paid thereon. Had they taken the credit in Jan. and Feb, itself, there would have been no objection by the Revenue. In fact, the said inputs were duly entered by them in their input records and it was only taking of credit which was deferred. As such, it can be seen that it i
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it of duty in respect of inputs received on or after 31.3.2000. Disputes arose in respect of inputs received prior to 31.3.2000 and it was clarified that inasmuch as an assessee has earned Modvat credit in respect of inputs received prior to 31.3.2000, he would be entitled to avail the Cenvat credit of duty paid on the same.
6. A logical interpretation of the provisions of Rule 57AB, as they existed before 1.3.2001 and after their amendment in 1.3.2001, leads me to conclude that an assessee cannot be denied the credit in respect of inputs received by him prior to 1.3.2001, especially when he was within his rights to avail the credit in respect of said inputs and could have availed the same immediately on receipt of the goods prior to 1.3.2001. As such, I find no merits in the Revenue's stand. Accordingly, the impugned orders are set aside and the appeal is allowed with consequential relief to the appellant.
( Dictated & pronounced in open Court )
Case laws, Decisions, Judgements,
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