Author: admin_gst

In Re : M/s Roulunds Braking India (Pvt.) Ltd.
GST
2018 (7) TMI 1332 – AUTHORITY FOR ADVANCE RULING – HARYANA – 2018 (15) G. S. T. L. 142 (A. A. R. – GST)
AUTHORITY FOR ADVANCE RULING – HARYANA – AAR
Dated:- 26-3-2018
Advance Ruling No. 3
GST
Sangeeta Karmakar (Member CGST) and Vijay Kumar Singh (Member SGST)
Present : Sh. Pradeep Tayal, Chartered Accountant (POA) for the Applicant
(ORDER OF ADVANCE RULING UNDER SECTION 98 OF CENTRAL GOODS & SERVICE TAX ACT, 2017 AND HARYANA GOODS & SERVICE TAX ACT, 2017)
Vijay Kumar Singh. (Member)
The applicant's application was examined and admitted on 16.02.2017. The applicant had sought advance ruling for correct classification of their product, i.e., Brake Pad and Auto Parts, whether to fall under ITC HSN 87083000 attracting 28% GST or ITC HSN 6813 attracting 18% GST.
Report of the Jurisdictional Officer
The Jurisdictional officer has submitted in his report dated 23.02.2018 that the ITC HSN 6813 attracting GST (9%

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eep Tayal, C.A. (POA) accompanied by Smt. Suman Bansal, C.S. were present. The case was discussed and they were heard in detail. They had no arguments in contradiction to the report of the jurisdictional officer.
During discussions it was noticed that the applicant is a 100% EOU and manufactures 'Brake Pads' for motor vehicles which largely are exported out of India. These present had also produced several shipping bills pertaining to export of their goods during the financial year 2012-13 to 2014-15 where ITC HSN was initially mentioned as 6803 but on their subsequent request dated 17.02.2017, the office of Commissioner of Customs (Export), Tughlakabad, New Delhi, vide letter dated 19.01.2018 had allowed the HSN on these invoices to be corrected and changed to ITC HSN 8708-3000. Similar change was also allowed for correct classification of HSN from 8708-9900 to 8708-3000 in several shipping bills for the stated period. After thorough deliberations the decision was reserved on

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t of the applicant is a result of frictional material mounted on metal sheets.
Further the HSN heading 8708 classifies parts and accessories of motor vehicle of headings 8701 to 8705 which are in respect of Tractors (other than tractors of the type used on railway platforms), Motor vehicles for transport of 10 over more person, Motor cars and other Motor vehicles principally designed for the  transport of person (other than those of headings 8702), including station wagons and racing cars, Motor Vehicles for transport of goods and special purpose motor vehicles respectively.
It is further noted that vide notification no. 1/2017-Central Tax (Rate), dated 28.06.2017, as amended from time to time and the corresponding State tax notification no. 35/ST-2, dated 30.06.2017 as amended from time to time, the parts and accessories of motor vehicles of heading 8701 to 8705 (other than specified parts of tractors) as classifiable under HSN 8708 attract 14% CGST & 14% HGST totaling 28% GST.

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In Re : M/s. Epcos India Pvt. Ltd.
GST
2018 (7) TMI 1419 – AUTHORITY FOR ADVANCE RULINGS, HARYANA – 2018 (15) G. S. T. L. 117 (A. A. R. – GST)
AUTHORITY FOR ADVANCE RULINGS, HARYANA – AAR
Dated:- 26-3-2018
ADVANCE RULING NO. 2 (IN APPLICATION NO. 2)
GST
Ms. Sangeeta Karmakar, Member CGST And Mr. Vijay Kumar Singh, Member SGST
For The Applicant : Sh. Ashok Patil, GM, Sh. Rajeev Kumar, Officer Taxation And Sh. Rakesh Chatbar, C.A. (PoA)
RULING
BRIEF FACTS OF THE APPLICATION
1.1 M/s Epcos India Pvt. Ltd.. Plot No.32. Sector-5,HSIIDC Growth Center Bawal-123501,Rewari (Haryana) [hereinafter referred to as “the applicant”], is holding Goods and Services Tax Identification Number 06AAACI6950Q1Z2 and has filed an application dt.26.12.2017, form GST ARA-01, for advance ruling under Section 97 of the Central Goods and Services Act, 2017/Haryana Goods and Services Act, 2017.
1.2 The applicant has submitted that they have made an additional investment in manufacturing o

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t of the mobile handset will, qualify to be classified under heading-85 having description “Parts for manufacture of Telephones for cellular networks or for other wireless networks'' attracting GST Rate of 12% (COST rate 6%, SGST rate 6%, IGST rate 12%) as mentioned under Serial No. 203 of Schedule lI of the Notification No. 1/2017 Central Tax (Rate) dated 28 June, 2017. Serial No. 203 of Schedule Il of the Notification No. 35/ST-2 dated 30th June, 2017 issued under Haryana Goods and Services Tax Act, 2017 and Serial No. 203 of Schedule II of the Notification So. 1/2017 Integrated Tax (Rate) dated 28 June 2017.
B. Whether the product 'Battery for Mobile Handset' whether it be separable or non-separable i.e.. whether it be detachable or non-detachable, when sold to the customers other than mobile handset manufacturers who does not use the same in manufacture of mobile handset, will qualify to be classified under heading-8507 having description.
“Electric accumulators, including separa

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03 of Schedule II of the respective notifications mentioned herein above under CGST Act. Haryana GST Act or IGST Act. However where the same is sold to the consumers who does not use it in manufacture mobile handset, would qualify to be classified under heading 8507 having description of “Electric accumulators, including separators therefor, whether or not rectangular (including square)'', attracting GST Rate of 28% (CGST rate 14%, SGST rate 14%, IGST rate 14%) as mentioned under Serial No. 139 of Schedule IV of the respective notifications mentioned herein above under CGST Act, Haryana GST Act or IGST Act.
1.6 In support of their contention, the applicant referred to GST Rate FAQ released in the CBEC website (http://www.cbec.gov.in/resources/htdocs-cbec/gst/GST-Rate%20FAQs%2027.072017%20 after% 20Fitment%20Committee.pdf, wherein under SI. No 20 against the question “What is the HSN code and GST rates for Battery for mobile handsets?”, it has been stated that “Battery for mobile hands

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ge that cellular phone cannot function without a battery. If that be so, the battery has to be considered as accessory, if not part/component, of cellular phone…”
1.9 (a) Based on the judgment state supra, the applicant has contended that Battery for mobile handsets whether the same is detachable/separable or non-detachable/non-separable from the mobile handset, when sold to the mobile handset manufacturers who uses the same to make it form part of the mobile handset, would qualify to be considered as a part of the mobile handsels and thus would attract GST Rate of 12% as mentioned under Serial No. 203 of Schedule II of the respective notifications mentioned herein above under CGST Act, Haryana GST Act or IGST Act: and
1.9.(b). Where the said Battery tor mobile handsets are sold to consumers/customers who do not use it in manufacture of mobile handset, would attract GST rate of 28% falling under HSN 8507 under Serial No. 139 of Schedule IV of the respective notifications mentioned

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ation No. 35/ST-2, dated 30th June, 2017 issued under Haryana Goods and Services Tax Act, 2017 and Serial No. 139 of Schedule IV of the Notification No. 1/2017 – Integrated Tax (Rate) dated 28 June 2017.
RECORDS OF PERSONAL HEARING – 2nd PROVISO TO SECTION 98(2) OF CGST/HGST ACT, 2017
3. During the personal hearing held on 14.03.2018, the applicant reiterated the submission made vide their application dt,26.12.2017.
DISCUSSIONS AND FINDINGS OF THE AUTHORITY
4.1 The questions raised before the Authority for Advance Ruling, have been elaborated in para 4.1 and 4.2 above. The first aspect to be decided in the instant case is, as to under which of the chapter headings of the Customs Tariff Act, 1985. the said product “battery for mobile handsets'', which is lithium-ion battery would be covered. In the various notifications mentioned in para 4above, which prescribe the rates of CGST on the goods in question, following has been provided vide an explanation:
Explanation. – For the pur

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to headings providing a more general description. In the instant case, lithium-ion mobile phone batteries, prima facie, appears to be covered under the following headings.
8507
ELECTRIC ACCUMULATATORS, INCLUDING SEPARATORS TH OR NOT RECTANGULAR (INCLUDING SQUARE)
8507 60 00
Lithium -ion
8517
TELEPHONE SETS, INCLUDING TELEPHONES FOR CELLULAR OTHER WIRELESS NETWORKS: OTHER APPARATUS
FOR THE TRANSMISSION OR RECEPTION OF VICE, IMAGES OR OTHER * \T c INCLUDING APPARATUS FOR COMMUNICATION IN A WIRED OR WIRELESS NETWORK (SUCH AS A LOCAL OR WIDE AREA NETWORK), OTHER THAN TRANSMISSION OR RECEPTION APPARATUS OF HEADING 8443, 8525, 8527 OR
8517 12
Telephones for cellular networks or for other wireless networks:
8517 70
Parts:
8517 70 10
Populated, loaded or stuffed printed circuit boards
8517 70 90
Other
Out of the above two, sub-heading 85076000, meant for lithium-ion battery, is more specific classification for the product under consideration and heading 85177090 is a general h

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n the Tariff. It was further clarified that the term “parts, components and assemblies of automobiles includes items like batteries, brake assembly, tyres, tubes and flaps, IC engines, ball bearing etc. Thus, it is established that it is not necessary that a part is to be classified in the same heading, in which the main item is covered.
4.5 In the case of State of Punjab v. Nokia India Pvt. Ltd. [2015(315)ELT162(SC), the Hon'ble Apex Court ruled that part is that item without which the main item cannot be operated.
4.6 We also find force in the contentions raised by the applicant that a mobile phone cannot function, cannot be operated without a battery, whether the same is detachable/separable or not. Hence, mobile phone batteries qualify as part of mobile phone and accordingly, we answer the questions raised by the applicant, as under:
4.7 The next point to be decided is that whether “battery for mobile handset” can qualify- for GST under S.No.203 of Schedule II of the Notificatio

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detachable, when sold to the mobile handset manufacturers who uses the same to make it form part of the mobile handset will, qualify to be classified under heading-85 having description “Parts for manufacture of Telephones for cellular networks or for other wireless networks” attracting GST Rate of 12% (CGST rate 6%, SGST rate 6%, IGST rate 12%) as mentioned under Serial No. 203 of Schedule VI of the Notification No. 1/2017 Central Tax (Rate) dated 28 June, 2017, Serial No. 203 of Schedule II of the Notification No. 35/ST-2 dated 30th June,2017 issued under Haryana Goods and Services Tax Act, 2017 and Serial No. 203 of Schedule II of the Notification No. 1/2017 Integrated fax (Rate) dated 28 June 2017.
5.B. The product 'Battery for Mobile Handset', when sold to the customers other than mobile handset manufacturers who does not use the same in manufacture of mobile handset, will qualify to be classified under heading-8507 having description Electric accumulators, including separators t

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In Re : M/s. Popular Motor World (P) Ltd.
GST
2018 (7) TMI 1638 – AUTHORITY FOR ADVANCE RULING – KERALA – TMI
AUTHORITY FOR ADVANCE RULING – KERALA – AAR
Dated:- 26-3-2018
CT/779/18-C3
GST
Senthil Nathan S, IRS (Member, CGST) and N. Thulaseedharan Pillai, Member, SGST
ORDER
M/s. Popular Motor World (P) Ltd., Ernakulam, a company dealing in Motor vehicles and one of the authorised dealers for Hyundai motor cars for the State of Kerala, had preferred an application for Adva

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Refund of IGST on Export-Extension of date in SB005 alternate mechanism cases & clarifications in other cases
PUBLIC NOTICE No. 53/2018 Dated:- 26-3-2018 Trade Notice
Customs
OFFICE OF THE COMMISSIONER OF CUSTOMS (EXPORT-II) NEW CUSTOMS HOUSE MUMBAI – 400 001.
F. No: S/16-Misc-54/2017-18 DBK
Date: 26.03.2018
PUBLIC NOTICE No. 53/2018
Sub:- Refund of IGST on Export-Extension of date in SB005 alternate mechanism cases & clarifications in other cases-reg.
CBEC vide Circular No.5/2018

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

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

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

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IN RE: M/s Maheshwari Stone Supplying Co., Tandur, Vikarabad
GST
2018 (6) TMI 458 – AUTHORITY FOR ADVANCE RULING HYDERABAD TELANGANA – 2018 (13) G. S. T. L. 345 (A. A. R. – GST)
AUTHORITY FOR ADVANCE RULING HYDERABAD TELANGANA – AAR
Dated:- 25-3-2018
A. R. Com/3/2017 – 2/2018
GST
Sri J. Laxminarayana, Additional Commissioner (State Tax) And Sri V. Srinivas, IRS, Joint Commissioner (Central Tax)
ORDER
1. M/s. Maheshwari Stone Supplying Co., Tandur,(GSTIN No.36ABNPS1863M1ZX) has filed an application in Form GST ARA-01under Section 97(1) of TGST Act,2017 read with Rule 103 of CGST/TGST Rules, 2017and sought advance ruling on the following issues:
(i) In which Chapter the commodity called “Polished/Processed limestone slabs” falls?
(ii) Under which HSN Code the above commodity comes?
(iii) Can it be classified as “Mineral substances not elsewhere specified or included” which is mentioned under HSN Code 2530?
(iv) Can it be classified under any of the HSN Codes 25

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ial and their SSI unit do not do that process and sawn on blocks is mostly practiced in KOTA region of Rajasthan and also in Marble/Granite Industry worldwide.
b) That surface POLISH is a process which is performed on directly brought rough stone SLABs (minor mineral) of uneven thickness and it is called BUTTERMILK like material which they usually undertake in their small scale industries. The expenses incurred on a swan TILE is higher than combined processes of POLISH & CUT done on a SLAB of same size. In economic terms also any of the two processes combined together cannot match a single process of SAWN which is allowed in written form under HSN Code 2516. Selling price wise and quality wise also there is a huge difference in these both varieties of stones and their cheap polish slabs are mostly used in low budget housing needs. These cheap quality Polish stones are also a last resort for a customer to select from.
c) Processed or Mirror Polished Marble/Granite SLABs have also not

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a Stone slab cannot be equated to manufacturing, hence such stone slabs are not liable to Excise Duty (ED for short). Under VAT regime their “Polished limestone slabs” were charged 5% of Tax. Hence, when no ED was charged and VAT was only 5%, then their commodity shall definitely fall in Chapter 25 only, whose GST is also 5% for Limestone category it is also noteworthy for the competent authority to note that ROYALTY is a kind of Tax as decided by majority of Judges of SC so far and the matter is still sub-judice before a larger bench now. And their commodity in its raw form suffers additional juicy fiscal burden in the form of ROYALTY at the hands of Mining authorities of State Government. The process of expensive and luxurious category Marble/Granite is very complex in comparison to their Polish slabs; to such an extent that processing expenses incurred only on SAWN process of Granite/Marble is 2-4 times higher than the entire material cost of Processed Limestone slab itself of same

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g a more general description.
6. As the applicant has presented their case with an argument that “processed/polished limestone slabs” are classifiable under chapter 25 of the GST tariff, we would like to draw attention to the Explanatory notes to the Harmonized Commodity Description and coding system:
* Section V of the HSN deals with classification of Mineral products and in Chapter 25 classification of Salt; sulphur; earths and Stone; plastering materials, lime and cement are dealt with.
* As per the chapter notes to chapter 25, the headings of this chapter covers mineral products only in the crude state. Minerals which have been otherwise processed (e.g., made up into articles by shaping, carving etc,) generally fall in latter chapters(for example, chapter 28 or 68).
7. The heading 25.15 covers Marble, Travertine, Ecaussine and other Calcareous Monumental or Building stone of an apparent specific gravity of 2.5 or more and Alabaster whether or not roughly trimmed or merely cut

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ars the marks of quarrying (blast holes, wedge marks, etc.).
……………..
……………..
* “Roughly trimmed” stone is stone which has been very crudely worked after quarrying, to form blocks or slabs, still having some rough, uneven surfaces. This working involves removing superfluous protuberances by means of hammer or chisel type tools.
* This subheading does not cover blocks or slabs which have been cut to a rectangular (including square) shape.
9. Similarly, the subheading explanatory notes for subheading 2515.12 are given below:
* To fall in this subheading, the blocks and slabs which have been merely cut by sawing must bear discernible traces of the sawing (by wire strand or other saws) on their surfaces.
10. The heading 25.16 covers Granite, Porphyry, Basalt, sandstone and other monumental or Building stones, whether or not roughly trimmed or merely cut, by sawing or otherwise into blocks or slabs………
* The stones of this heading may be shaped or proce

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rocessing unit and POLISHING one of the suitable surface with simple table polish machine and further cut it to square or rectangular shape on a table cutting machine. Since the stones which have undergone the process of polishing are not classifiable under chapter 25, we would like to draw our attention to the Explanatory notes to heading 68.02 which were reproduced below for ease of reference:
* This heading covers natural monumental or building stone (except slate) which has been worked beyond the stage of the normal quarry products of chapter 25.
* The heading therefore covers stone which has been further processed than mere shaping into blocks, sheets or slabs by splitting, roughly cutting or squaring by sawing(square or rectangular faces).
* The heading thus covers stone in the forms produced by the stone-mason, sculptor, etc., viz:
(A)………..
(B) Stone of any shape (including blocks, slabs or sheets), whether or not in the form of finished articles, which has been bo

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

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

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System not in confirmation with Rule 39(e) of CGST Rules
Query (Issue) Started By: – RadheyShyam Mangal Dated:- 24-3-2018 Last Reply Date:- 13-5-2018 Goods and Services Tax – GST
Got 1 Reply
GST
As per Section 20 of the CGST Act, input tax credit on account of IGST Credit can be distributed by Input Service Distributor as IGST or CGST.
As per Rule 39(e) of CGST Rules, which prescribes procedure for distribution of credit by Input Service Distributor, says input tax credit on accoun

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High Court Orders Revenue Authorities to Accept GST Tran-1 Returns Provisionally Amid Technical Glitches, Allows Manual Submission.
Case-Laws
GST
Difficulties in filing of GST Tran-1 and othe

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New Explanation Added to Chapter XVI of CGST Rules 2017 Clarifies Railway Transport Terms for E-way Rules.
Act-Rules
GST
E-way Rules – scope of the expressions ‘transported by railways’,

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CGST Rules 2017: Defining “Interested Party” in Anti-Profiteering Cases; Key Amendments in Chapter XV Explained.
Act-Rules
GST
Anti-Profiteering – scope of Interested Party – Explanations to

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Majority Vote Required for Anti-Profiteering Decisions u/r 134 of CGST Rules, 2017; Ensures Fair Pricing.
Act-Rules
GST
Anti-Profiteering – Decision to be taken by the majority – Rule 134 of

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Authority Enforces Rule 133 of CGST Rules 2017 to Combat Anti-Profiteering and Ensure Fair Pricing in GST Era.
Act-Rules
GST
Anti-Profiteering – Order of the Authority – Rule 133 of the CGST

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Rule 129 of CGST Rules: Governing Anti-Profiteering Investigations to Ensure Compliance and Protect Consumers Under GST Framework.
Act-Rules
GST
Anti-Profiteering – Initiation and conduct of

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Anti-Profiteering Authority Duties u/r 127: Ensure Tax Benefits Reach Consumers, Prevent Undue Profiteering in GST Pricing.
Act-Rules
GST
Anti-Profiteering – Duties of the Authority – Rule 12

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CGST Rule 125 Amended: New Role for Secretary to Ensure Businesses Pass Tax Reduction Benefits to Consumers.
Act-Rules
GST
Anti-Profiteering – Secretary to the Authority – Rule 125 of the CGS

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Rule 124 CGST Rules 2017: Regulates Appointment, Salary, and Terms for Anti-Profiteering Authority Officials to Ensure Accountability.
Act-Rules
GST
Anti-Profiteering – Appointment, salary, a

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CGST Rule 45: Conditions for Sending Goods to Job Workers and Tax Implications for Non-compliance Explained.
Act-Rules
GST
Conditions and restrictions in respect of inputs and capital goods s

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GST Boosts Company Registrations and Sales, Spurring Industrial Growth and Positive Business Environment Impact.
News
GST
After introduction of GST, increasing trend in the number of companie

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IGST Exemption Extended for EOUs, STP, and EHTP Units on Specified Imports Until October 1, 2018.
Notifications
Customs
Exemption to specified goods imported on procured by EOU's, STP Units,

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Deadline Extended for IGST Refund Claims on Exports: Clarifications on SB005 Mechanism to Streamline Process for Exporters.
Circulars
Customs
Refund of IGST on Export—Extension of date in S

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commission
Query (Issue) Started By: – Dinesh Biyanee Dated:- 24-3-2018 Last Reply Date:- 26-3-2018 Goods and Services Tax – GST
Got 4 Replies
GST
if a person receives commission less than 20 lacs during a year will need GST registration or not.
will he be considered as pure agent ?
Reply By KASTURI SETHI:
The Reply:
(i) No registration required.
(ii) Whether a commission agent is pure agent or not, it depends upon terms and conditions of contract/agreement . However example C & F Agent, CHA etc. are pure agent.
Rule 33 of CGST Rules, 2017 also prescribes the procedure for transaction in which a person acts as a pure agent for a principal for certain services supplied to the principal through third party.
Although, supply

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e 33 of CGST Rules, 2017, “pure agent” means a person who –
(a) enters into a contractual agreement (whether written on otherwise) with the recipient of supply to act as his pure agent to incur expenditure or costs in the course of supply of goods or services or both;
(b) neither intends to hold nor holds any title to the goods or services or both so procured or provided as pure agent of the recipient of supply;
(c) does not use for his own interest such goods or services so procured; and
(d) receives only the actual amount incurred to procure such goods or services.
Reply By Alkesh Jani:
The Reply:
Sir, for my knowledge purpose, please clarify above raise issue by pursuing Section 15(2)(b) & (c) of the CGST Act, 2017.
Regards,
Repl

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TAXABILITY OF UP FRONT LEASE PREMIUM
By: – Dr. Sanjiv Agarwal
Goods and Services Tax – GST
Dated:- 24-3-2018

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

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

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

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

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

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Confusions in GST Law: Part 1
By: – Altamush Zafar
Goods and Services Tax – GST
Dated:- 24-3-2018

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

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

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refund on accumulated ITC on export of medicine
Query (Issue) Started By: – BalKrishan Rakheja Dated:- 24-3-2018 Last Reply Date:- 25-3-2018 Goods and Services Tax – GST
Got 4 Replies
GST
A manufacutrer (Ltd Company) having one unit in Panchkula and another in Baddi (HP) (same name and same PAN) and engaged both are in manufacturing of medicine. Unit situated at Panchkula purchased the medicine from their Badi unit on payment of IGST and exported the same from the Panchkula premises in the same packing on same day after availing the ITC on these finished goods. The party export these goods (medicine) under LUT and now filed refund for accumulated ITC. on perusal of time of clearance invoices it also found that the difference of

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-15 MINUTES TO REACH FROM BADDI TO PANCHKULA.
Reply By KASTURI SETHI:
The Reply:
Point-wise reply is as under:-
(1) Yes.
(2) Yes.
(3) Sometimes timing set on the computer creates such problem. You are right to the extent that it is practically not feasible to reach the goods between 15-20 minutes. Journey takes more than one hour between Panchkula and Baddi. However, if your transaction is genuine, nothing to worry. Other supporting documents will come to your rescue i.e. Export docs, receipt of goods by foreign buyer, airway bill, foreign exchange, BRC, GR (consignment note) etc. In view of these docs, the error of timing would be treated as procedural/clerical/typographical lapse.
Reply By BalKrishan Rakheja:
The Reply:
Thanks Set

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