Author: admin_gst

The Andhra Pradesh Goods and Services Tax (Nineteenth Amendment) Rules, 2018.
G.O.Ms.No. 391 Dated:- 23-7-2018 Andhra Pradesh SGST
GST – States
Andhra Pradesh SGST
Andhra Pradesh SGST
REVENUE DEPARTMENT
(COMMERCIAL TAXES-II)
[G.O.Ms.No. 391, Revenue (Commercial Taxes-II), 23rd July, 2018.]
NOTIFICATION
In exercise of the powers conferred by section 164 of the Andhra Pradesh Goods and Services Tax Act, 2017 (Act No. 16 of 2017), the Government of Andhra Pradesh hereby make the following rules further to amend the Andhra Pradesh Goods and Services Tax Rules, 2017, issued in G.O.Ms.No.227, Revenue (CT-II) Department dated.22-06-2017 as subsequently amended.
(1) These rules may be called the Andhra Pradesh Goods and Services Tax (Nineteenth Amendment) Rules, 2018.
(2) Save as otherwise provided, they shall be deemed to have come into force with effect on and from 13th June, 2018.
AMENDMENTS
In the Andhra Pradesh Goods and Services Tax Rules, 2017, –
i. in rule 37,

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(a) Net ITC shall mean input tax credit availed on inputs during the relevant period other than the input tax credit availed for which refund is claimed under sub-rules (4A) or (4B) or both; and
(b) Adjusted Total turnover shall have the same meaning as assigned to it in sub-rule (4).”
iv. with effect on and from 01st July, 2017, in rule 95, in sub-rule (3), for clause (a), the following shall be substituted, namely:-
“(a) the inward supplies of goods or services or both were received from a registered person against a tax invoice”
v. in rule 97, in sub-rule (1), after the proviso, the following proviso shall be inserted, namely:-
“Provided further that an amount equivalent to fifty per cent of the amount of cess determined under sub-section (5) of section 54 read with section 11 of the Goods and Services Tax (Compensation to States) Act, 2017 (Act No. 15 of 2017), shall be deposited in the Fund.”;
vi. in rule 133, for sub-rule (3), the following shall be substituted, namely,

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the amount or is not identifiable;
(d) imposition of penalty as specified under the Act; and
(e) cancellation of registration under the Act.
vii. in rule 138, in sub-rule (14), after clause (n), the following clause shall be inserted, namely:-
“(o) where empty cylinders for packing of liquefied petroleum gas are being moved for reasons other than supply.”;
viii. in FORM GSTR-4, in the Instructions, for instruction 10, the following shall be substituted, namely:-
“10. For the tax periods July, 2017 to September, 2017, October, 2017 to December, 2017, January, 2018 to March, 2018 and April, 2018 to June, 2018, serial 4A of Table 4 shall not be furnished.”;
ix. with effect on and from 01st July, 2017, in FORM GST PCT-01, in PART B, in the Table
a. against Sl. No. 4, in column (3) after entry (10), the following shall be added, namely:-
“(11) Sales Tax practitioner under existing law for a period of not less than five years
(12) tax return preparer under existing law for a pe

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nt 5B, the following Statement shall be substituted, namely:-
“Statement 5B
[see rule 89(2)(g)]
Refund Type: On account of deemed exports
(Amount in Rs)
Sl.No.
Details of invoices of outward supplies in case refund is claimed by supplier/Details of invoices of inward supplies in case refund is claimed by recipient
Tax paid
GSTIN the supplier
No.
Date
Taxable value
Integrated Tax
Central Tax
State Tax/Union territory Tax
Cess
1
2
3
4
5
6
7
8
9
“;
xi. in FORM GST RFD-01A, in Annexure-1,
a. for Statement IA, the following Statement shall be substituted, namely:-
“Statement 1A
[see rule 89(2)(h)]
Refund Type: ITC accumulated due to inverted tax structure [clause (ii) of first proviso to section 54(3)]
Sl.No.
Details of invoices of inward supplies received
Tax paid on inward supplies
Details of outward supplies issued
Tax paid on outward supplies
GSTIN of the supplier
No.
Date
Taxable value
Integrated Tax
Central Tax
State Tax/Union territory Tax

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M/s. Consim Info Pvt. Ltd. (formerly known as M/s. BharatMatrimony. com Pvt. Ltd.) Versus Commissioner of GST & Central Excise Chennai South Commissionerate
Service Tax
2018 (9) TMI 1657 – CESTAT CHENNAI – 2019 (21) G. S. T. L. 447 (Tri. – Chennai)
CESTAT CHENNAI – AT
Dated:- 23-7-2018
ST/Misc. /41100/2017 and ST/551/2010 – Final Order No. 42186/2018
Service Tax
Ms. Sulekha Beevi C.S., Member (Judicial) And Shri Madhu Mohan Damodhar, Member (Technical)
Shri Akhil Suresh, Advocate for the Appellant
Shri S. Govindarajan, AC (AR) for the Respondent
ORDER
Per Bench
Brief facts are that the appellant is a private limited company having branches all over India and are providing matrimonial services through online information on website, providing private employment exchange for employers and job seekers to find the candidates and jobs respectively. They are also aiding property transactions in the websites by creating a common meeting ground for those dealing in

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notice was issued raising allegations and also demanding service tax for the period January 2006 to March 2007. After due process of law, the original authority confirmed the demand and dropped the penalty under section 76 of the Finance Act, 1994, however, confirmed the penalty under section 78 of the said Act. In appeal, Commissioner (Appeals) upheld the same. Hence this appeal.
2. On behalf of the appellant, ld. counsel Shri Akhil Suresh appeared and argued the matter. He adverted to the agreement entered into by the appellant with their associate centers and submitted that the agreement is mere granting of right to use the trademark of appellant company. As per the definition of franchise service, as it stood prior to 16.6.2005, there was specific condition and characteristics in order to classify the services under franchise service. After the introduction of Intellectual Property Service from 10.9.2004, the definition of franchise service underwent a change with effect from 16.

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not fulfilled in the instant case and does not make the activity a taxable service under this category. He placed reliance in Ashok Enterprises reported in 2007 (5) STR 153 (Commr. Appl.) which held that where agreements are lacking concept business operation, managerial expertise and market techniques of franchisor to be followed by franchisee, then the agreement grants limited use of intellectual property of trademark and would be covered under Intellectual Property service. Thus, the ld. counsel has argued that the services would not fall under franchise service but would be more akin to Intellectual Property service.
3. In addition, it was submitted that the demand cannot sustain as the show cause notice has been issued invoking the extended period alleging suppression of facts. That the appellant has not suppressed any facts. In fact, an internal audit was conducted in 2006 wherein the agreement was scrutinized by the officers during the course of audit and there was no objection

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nt is for transfer of intellectual property. The agreement shows that the franchisor agreed to the franchisee to establish and administer bharatmatrimony.com center for providing a matrimony service in the name of franchisor. Further, there is a fee charged by the franchisor in the name of royalty upon the franchisee for continuous use of the name together with the past and present goodwill of the franchisor along with minimum support service like design of marketing know-how, technical know-how etc. That these would clearly show that it is not an agreement for transfer of intellectual property but an agreement for franchise service. With regard to limitation, he submitted that the appellant have suppressed the activity of rendering franchise service, with intent to evade payment of service, the show cause notice issued invoking the extended period is proper.
5. Heard both sides.
6. The main ground that has been argued by the ld. counsel is that the activity does not fall under franc

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g of various BharatMatrimony Centers throughout the country. The FRANCHISEE acknowledges that he does not presently know the special skills, techniques or business policies, nor does the FRANCHISEE have business forms or access to the FRANCHISOR'S body of knowledge”
7. The above would show that it is not an agreement for mere transfer of intellectual property. In fact, the franchise agreement stipulates for payment of franchise fee charged by the franchisor upon the franchisee. The argument of the ld. counsel that it involves only transfer of intellectual property cannot be accepted for the reason that the agreement involves conditions wherein the manner of functioning and operation of the associate center is laid down. Thus the franchisor has a right to dictate or direct how the franchisee has to carry on the business. There is also a condition for the franchisee to attend the training conducted by them. Clause 5.3 states that the administration of centre shall be by the Centre Manag

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GST Council Recommends Lowering Rates to Boost Handicraft Sector and Ease Tax Burden on Goods.
News
GST
GST Council recommends GST rates reduction on several goods & for specified handicraft

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GST Council Updates: Adjusted Tax Rates, Clarified Exemptions, and New Reverse Charge Provisions Effective from July 21, 2018.
News
GST
GST Council Decisions – GST on goods and services – Rat

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GST Council recommends GST rates reduction on several goods & for specified handicraft items
GST
Dated:- 21-7-2018

GST COUNCIL RECOMMENDS GST RATES REDUCTION ON SEVERAL GOODS & for specified handicraft items
GST rates have been recommended to be brought down to Nil on Sanitary Napkins & Rakhi & more Goods
GST Council recommends for allowing refund to fabrics on account of inverted duty structure
Rate change made in respect of footwear
The GST Council in its 28th meeting held here today under the Chairmanship of Shri Piyush Goyal , Union Minister for Railways , Coal , Finance & Corporate Affairs took following decisions on GST Rate on Goods .
I. GST rates reduction on 28% items:
*
28% to 18%
*
Paints and varnishes (including enamels and lacquers)
*
Glaziers' putty, grafting putty, resin cements
*
Refrigerators, freezers and other refrigerating or freezing equipment including water cooler, milk coolers, refrigerating equipment for leather industry, i

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umulated credit on account of inverted duty structure to fabric manufacturers:Fabrics attract GST at the rate of 5% subject to the condition that refund of accumulated ITC on account of inversion will not be allowed. However, considering the difficulty faced by the Fabric sector on account of this condition, the GST Council has recommended for allowing refund to fabrics on account of inverted duty structure. The refund of accumulated ITC shall be allowed only with the prospective effect on the purchases made after the notification is issued.
III. GST rates have been recommended to be brought down from,-
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18%12%/5% to Nil:
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Stone/Marble/Wood Deities
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Rakhi [other than that of precious or semi-precious material of chapter 71]
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Sanitary Napkins,
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Coir pith compost
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Sal Leaves siali leaves and their products and Sabai Rope
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PhoolBhariJhadoo [Raw material for Jhadoo]
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Khali dona.
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Circulation and commemorative coins, sold by Security Printing a

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pouches and purses; jewellery box
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Wooden frames for painting, photographs, mirrors etc
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Art ware of cork [including articles of sholapith]
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Stone art ware, stone inlay work
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Ornamental framed mirrors
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Glass statues [other than those of crystal]
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Glass art ware [ incl. pots, jars, votive, cask, cake cover, tulip bottle, vase ]
*
Art ware of iron
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Art ware of brass, copper/ copper alloys, electro plated with nickel/silver
*
Aluminium art ware
*
Handcrafted lamps (including panchloga lamp)
*
Worked vegetable or mineral carving, articles thereof, articles of wax, of stearin, of natural gums or natural resins or of modelling pastes etc, (including articles of lac, shellac)
*
Ganjifa card
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12% to 5%:
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Handmade carpets and other handmade textile floor coverings (including namda/gabba)
*
Handmade lace
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Hand-woven tapestries
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Hand-made braids and ornamental trimming in the piece
*
Toran
VI Miscellaneous Chan

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GST Council Sets New Service Tax Rates, Impacting Businesses and Consumers Alike with Streamlined Compliance Measures.
News
GST
GST rate on Services – GST Council decision
TMI Updates – H

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GST Council Approves Simplified Return Format to Ease Compliance and Enhance Efficiency in Tax Filing Process.
News
GST
GST council approves Simplified GST Return
TMI Updates – Highlights, quick notes, marquee, annotation, news, alerts

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GST rate on Services
GST
Dated:- 21-7-2018

The GST Council in its 28th meeting held here today under the Chairmanship of Shri Piyush Goyal , Union Minister for Railways , Coal , Finance & Corporate Affairs took following decisions relating to exemptions / changes in GST rates / ITC eligibility criteria, rationalization of rates / exemptions and clarification on levy of GST on services. The decisions of the GST Council enclosed as annexure has been presented in simple language for ease of understanding which would be given effect to through Gazette notifications/ circulars which shall have force of law.
It would be noted that multiple reliefs from GST taxation have been provided to following categories of services –
(i) Agriculture, farming and food processing industry,
(ii) Education, training and skill development,
(iii) Pension, social security and old age support.
Hotel industry has been given major relief by providing that the rate of tax on accommodation ser

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es for extending electricity distribution network upto the tube well of the farmer/ agriculturalist for agricultural use.
4. Exempt services provided by FSSAI to food business operators.
Education/ Training/ Skill Development
5. Reduce rate of GST from 18% to 5% on supply only of e-books for which print version exist.
Social Security/ Pension Security/ Senior Citizens
6. Exempt services provided by Coal Mines Provident Fund Organisation to the PF subscribers from the applicability of GST on the lines of EPFO.
7. Exempt supply of services by an old age home run by State / Central Government or by a body registered under 12AA of Income Tax Act) to its residents (aged 60 years or more) against consideration upto Rupees Twenty Five Thousand per month per member provided consideration is inclusive of charges for boarding, lodging and maintenance.
8. Exempt GST on the administrative fee collected by National Pension System Trust.
9. Exempt services provided by an unincorporated

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empt GST on import of services by Foreign Diplomatic Missions/ UN & other International Organizations based on reciprocity.
14. Exempt services supplied by an establishment of a person in India to any establishment of that person outside India, which are treated as establishments of distinct persons in accordance with Explanation I in section 8 of the IGST Act provided the place of supply is outside the taxable territory of India in accordance with section 13 of IGST Act
15. Prescribe GST rate slabs on accommodation service based on transaction value instead of declared tariff which is likely to provide major relief to the hotel industry.
16. Prescribe GST rate of 12% with full ITC under forward charge for composite supply of multimodal transportation.
17. Rationalize the notification entry prescribing reduced GST rate on composite supply of works contract received by the Government or a local authority in the course of their sovereign functions.
18. Rationalize entry relat

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able property located outside India to Indian Diplomatic Missions/Posts abroad.
23. To clarify to Auroville foundation that'maintenance' paid by it to Auroviliansis not liable to GST.
24. To insert an explanation in notification No. 13/2017-Central Tax (Rate) to define the term renting of immovable property.
25. To clarify that certain services such as “deposit works(expenses for providing electric line/plant)” related to distribution of electricity provided by DISCOM, attract GST.
Export / other trade facilitation measures
26. Extend the exemption granted on outward transportation of all goods by air and sea by another one year i.e. upto 30th September, 2019 as relief to the exporter of goods.
27. Place liability to pay GST on services provided by individual DSAs to banks/NBFCs under reverse charge on the buying banks/NBFCs. However, services by non-individual NBFCs (corporate, partnership firms) to banks/NBFCs would continue under forward charge, as at present.
News

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GST council approves Simplified GST Return
GST
Dated:- 21-7-2018

The GST Council in its 28th meeting held here today under the Chairmanship of Shri Piyush Goyal , Union Minister for Railways , Coal , Finance & Corporate Affairs has approved the new return formats and associated changes in law. It may be recalled that in the 27thmeeting held on 4thof May, 2018 the Council had approved the basic principles of GST return design and directed the law committee to finalize the return formats and changes in law. The formats and business process approved today were in line with the basic principles with one major change i.e the option of filing quarterly return with monthly payment of tax in a simplified return format by the small tax

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information which a taxpayer would be shown and would be required to fill in the return would depend on his profile.
NIL return filers (no purchase and no sale) shall be given facility to file return by sending SMS.
The Council approved quarterly filing of return for the small taxpayers having turnover below ₹ 5 Cr as an optional facility. Quarterly return shall be similar to main return with monthly payment facility but for two kinds of registered persons – small traders making only B2C supply or making B2B + B2C supply. For such taxpayers, simplified returns have been designed called Sahaj and Sugam. In these returns details of information required to be filled is lesser than that in the regular return.
The new return design

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Finance Minister Highlights Tax Reforms and Adjustments from 28th GST Council Meeting, Aiming to Boost Economic Growth.
News
GST
Finance Minister Piyush Goyal addresses media after 28th GST c

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Finance Minister Piyush Goyal addresses media after 28th GST council meet
GST
Dated:- 21-7-2018


News – Press release – PIB

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GST Council Cuts Tax Rates, Simplifies Returns, and Boosts Small Business at 28th Meeting in New Delhi.
News
Indian Laws
Recommendations made during the 28thmeeting of the GST Council held in

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Recommendation to Extend Migration Window for Taxpayers Under GST System Until August 31, 2018, to Ease Transition Process.
News
GST
Recommendations on opening of migration window for tax pay

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Recommendations made during the 28thmeeting of the GST Council held in New Delhi on 21st 2018
GST
Dated:- 21-7-2018

Recommendations made during the 28th meeting of the GST Council held in New Delhi on 21st 2018
Amendments to the CGST Act, 2017, IGST Act, 2017, UTGST Act 2017, and GST (Compensation to States) Act, 2017
The GST Council in its 28thmeeting held here today has recommended certain amendments in the CGST Act, IGST Act, UTGST Act and the GST (Compensation to States) Act.
2. The major recommendations are as detailed below:
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Upper limit of turnover for opting for composition scheme to be raised from ₹ 1 crore to ₹ 1.5 crore. Present limit of turnover can now be raised on the recommendations of the

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ry in respect of multiple places of business located within the same State/Union territory.
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Mandatory registration is required for only those e-commerce operators who are required to collect tax at source.
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Registration to remain temporarily suspended while cancellation of registration is under process, so that the taxpayer is relieved of continued compliance under the law.
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The following transactions to be treated as no supply (no tax payable) under Schedule III:
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Supply of goods from a place in the non-taxable territory to another place in the non-taxable territory without such goods enteringinto India;
*
Supply of warehoused goods to any person before clearance for home consumption; and
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Supply of goods

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e the recipient fails to pay the due amount to the supplier within 180 days from the date of issue of invoice, the input tax credit availed by the recipient will be reversed, but liability to pay interest is being done away with.
*
Registered persons may issue consolidated credit/debit notes in respect of multiple invoices issued in a Financial Year.
*
Amount of pre-deposit payable for filing of appeal before the Appellate Authority and the Appellate Tribunal to be capped at ₹ 25 Crores and ₹ 50 Crores, respectively.
*
Commissioner to be empowered to extend the time limit for return of inputs and capital sent on job work, upto a period of one year and two years, respectively.
*
Supply of services to qualify as

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Recommendations on opening of migration window for tax payers till 31st August, 2018
GST
Dated:- 21-7-2018

The GST Council in its 28th meeting held here today has approvedthe proposal to open the migration window for taxpayers, who received provisional IDs but could not complete the migration process.
The taxpayers who filed Part A of FORM GST REG-26, but not Part B of the said FORM are requested to approach the jurisdictional Central Tax/State Tax nodal officerswith the necessary

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Indian Services to Hong Kong Associate Considered Taxable; Export Status Beyond Current Authority's Jurisdiction.
Case-Laws
GST
Place of supply – sourcing (on a worldwide basis)) of goods from India – export or not – The services provided by Esprit India to its associate concern in Hong Kong EDCFE are taxable supplies. – The above stated services being taxable supplies, the question as to whether they qualify as “export of services” and accordingly “zero rated supply”, is out of

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Goods in LDPE/HDPE bags without specified weight aren't “unit containers” for GST; doesn't affect Army supply GST rate.
Case-Laws
GST
Rates of GST – Unit container – goods in different weight and size packed in LDPE bags without mentioning the weight and one or two such LDPE bags further packed in HDPE hags having mention of varying actual total weight of the carcasses packed in each such HDPE bags and supplied to Army Shall not quality as product put up in ‘unit Container'.
TMI U

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Brake Pads for Motor Vehicles Classified Under HSN 87083000; GST Rate: 18% for Tractors, 28% for Others.
Case-Laws
GST
The Brake Pads, i.e., friction material mounted on metal plate, manufactured by the applicant for motor vehicles of headings 8701 to 8705 (other than specified parts of tractors) are correctly classifiable under HSN 87083000 of the Custom Tariff Act. – Rate of GST is 18% in case of tractors and 28% in case of motor vehicles.
TMI Updates – Highlights, quick notes, ma

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GST Classifies Take-Away Food Services Without Seating as Service Supply, Affecting Taxation Rules.
Case-Laws
GST
Classification of supply – Manufacturing food as take away only with no sitti

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TAXABILITY OF LIQUIDATED DAMAGES UNDER GST
By: – Dr. Sanjiv Agarwal
Goods and Services Tax – GST
Dated:- 21-7-2018

Scope of Liquidated Damages
'Liquidated damages' is a common prevalent business terminology comprising of two words – liquidated and damages. This can be found in business agreements or contracts to protect the interests of the principal or the other party from any specified action arising out of performance or non-performance or breach of any conditions of the contract.
Literally 'to liquidate' implies the winding up of affairs of a business by ascertaining assets and liabilities, a plan to liquidate, process of liquidation.
'Damages' refer to detrimental effects. Damages are a sum of money claimed or awarded in compensation for a loss or an enquiry.
Liquidated damages are damages or a sum of money which is agreed upon in a contact to be paid to a party by another party in the event of breach of any term or condition of the contract.
According to P

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nature of the transaction, the actual damages consequent on a breach of the contract are incapable of accurate measurement, or where the sum specified is not out of all proportion to any damages which could arise, the provision will be treated as liquidated damages. But where these facts do not exist the tendency of the Court is to treat the stipulation in the nature of a penalty.
The essence of liquidated damages is a genuine pre-estimated damage and the estimate of penalty is a payment of money stipulated as in terrorem of the offending party and the question whether the sum stipulated is penalty or liquidated damages is a question of construction to be decided upon the terms of the surrounding circumstances in the context of which the contract had been made. Prahled Bhagirath Firm v. Badrilal Bhalooram, MLJ: QD (1956-1960) Vol. II CI026: 1959 MPLJ (Notes) 171. [Contract Act (9 of 1872),
S.74].
Contracts often contain provisions for the payment of sums of money or the forfeiture

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e terms a judge will not accept the phraseology of the parties; they may call the sum specified 'liquidated damages' but if the judge finds it to be a penalty, he will treat it as such. WILLIAM R. ANSON, Principles of the Law of Contract 470 (ARTHUR L. CORBIN ed., 3d Am. ed. 1919).
The distinction between a penalty and genuine liquidated damages, as they are called, is not always easy to apply, but the Courts have made the task simpler by laying down certain guiding principles. In the first place, if the sum payable is so large as to be far in excess of the probable damage on breach, it is almost certainly a penalty. Secondly, if the same sum is expressed to be payable on anyone of a number of different breaches of varying importance, it is again probably a penalty, because it is extremely unlikely that the same damage would be caused by these varying breaches. Thirdly, where a sum is expressed to be payable on a certain date, and a further sum in the event of default being m

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ny loss or damage caused to him thereby, which naturally arose in the usual course of things from such breach, or which the parties knew, when they made the contract, to be likely to result from the breach of it.”
Section 74
“When a contract has been broken, if a sum is named in the contract as the amount to be paid in case of such breach, or if the contract contains any other stipulation by way of penalty, the party complaining of the breach is entitled, whether or not actual damage or loss is provided to have been caused thereby, to receive from the party who has broken the contract reasonable compensation not exceeding the amount so named, or as the case may be, the penalty stipulated for.”
Liquidated damages are nothing but monetary compensation for suffering arising out of breach of contract.
Taxation under Service Tax regime
In Service Tax regime, there was a declared service under section 66E(e) of the Finance Act, 1994 whereby an activity to the obligation to retrain from

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seen actions not related to the provision of service'. This covered consideration or amount arising out of two situations – there is no provision of service and there exists unforeseen actions. Liquidated damages also are the outcome of these two situations.
GST on Liquidated Damages
Under the GST law, scope of supply is defined in section 7 and charging section levy and collection) is governed by section 9 of CGST Act 2017. 'Supply' is defined as an inclusive definition which shall include:
* all forms of supply of goods or services or both such as sale, transfer, barter, exchange, licence, rental, lease or disposal made or agreed to be made for a consideration by a person in the course or furtherance of business;
* import of services for a consideration whether or not in the course or furtherance of business;
* the activities specified in Schedule I, made or agreed to be made without a consideration; and
* the activities to be treated as supply of goods or supply of servic

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of payment of these liquidated damages by the contractor will be established once the delay in successful completion of trial operation is established on the part of the contractor. Thus, the act of delayed supply has happened. The same was being tolerated by an additional levy in the nature of liquidated damages. The agreement had also provided that the payment by contractor or deduction by owner of any sums under the provision of this clause shall not relieve the contractor from his obligations to complete the works or from his other obligations under the contract. This provision just ensured that the obligations under the contract are fulfilled. The facts are much obvious that the empowerment to levy liquidated damages is for the reason that there had been a delay and the same would be tolerated, but for a price or damages. The income though presented in the form of a deduction from the payments to be made to the contractor was the income of the applicant and would be a supply of '

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18% [9% + 9%]
Another important issue of levy of GST is that at what time the liability to pay GST would occur. This would be governed by time of supply provision as stipulated in section 13 and 14 the GST law. Section 13(1) provides that the liability to pay tax on services shall arise at the time of supply for which agreement and section 14 are relevant. Accordingly, liquidated damages is determined and imposed upon the contractor after in-depth study. In terms of the agreement, the clauses revealed that the levy of liquidated damages is not when the delay is occurring but the liability of payment of these liquidated damages by the Contractor will be established once the delay in successful completion of trial operation is established on the part of the Contractor. This would define the time of supply.
In terms of Section 13(1) of Central Goods and Services Tax Act, 2017, liability to pay tax on services arose at time of supply. If contractor fails to achieve trial operation of uni

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The Karnataka Goods and Services Tax (Eighth Amendment) Rules, 2018.
4-R/2017 Dated:- 21-7-2018 Karnataka SGST
GST – States
Karnataka SGST
Karnataka SGST
FINANCE SECRETARIAT
NOTIFICATION (4-R/2017)
No. FD 47 CSL 2017, Bengaluru, dated: 21/07/2018
In exercise of the powers conferred by section 164 of the Karnataka Goods and Services Tax Act, 2017 (Karnataka Act 27 of 2017), on the recommendation of GST Council the Government of Karnataka hereby makes the following rules further to amend the Karnataka Goods and Services Tax Rules, 2017, namely:
RULES
1. Title and commencement.- (1) These rules may be called the Karnataka Goods and Services Tax (Eighth Amendment) Rules, 2018.
(2) They shall be deemed to have come into forc

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gst credit eligibility
Query (Issue) Started By: – Ramakrishnan Seshadri Dated:- 20-7-2018 Last Reply Date:- 22-7-2018 Goods and Services Tax – GST
Got 3 Replies
GST
Dear sir.
We are the manufacturers of automobile parts supplying to OEM. We are having a paintshop with sandbooth area.
We have shifted the sandbooth area from one place in the factory paintshop to another place in the paintshop.
For that work done, the service provider has raised invoice charging gst.
My question

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EXEMPTION TO SALE OF MEDICINES BY A SEC.12A REGD. TRUST
Query (Issue) Started By: – kollengode venkitaraman Dated:- 20-7-2018 Last Reply Date:- 25-7-2018 Goods and Services Tax – GST
Got 3 Replies
GST
A CHARITABLE TRUST REGD U/S 12A OF THE IT ACT IS RUNNING A HOSPITAL. THE SERVICES ARE RENDERED AT NO PROFIT NO LOSS BASIS. A PHARMACY IS ALSO RUN BY THE TRUST INSIDE THE HOSPITAL AND SALES ARE TO PATIENTS TO WHOM PRESCRIPTION IS GIVEN BY THE HOSPITAL DOCTOR.OUTSIDERS DO NOT PATRONISE T

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SOME CRYING ISSUES OF GST
By: – CAPratyush Parashar
Goods and Services Tax – GST
Dated:- 20-7-2018

SOME CRYING ISSUES OF GST
Series 1- GST Registration
Introductory edition
The Baby GST has celebrated its first BDAY let's try to get the mumbling of this Baby with my best endeavor to decode the sounds which actually have the alphabets but no meaning.
Starting with the registration process in GST covered under Section 22 to Section 30 of the CGST Act.
Section 22 (1) provides “Every supplier shall be liable to be registered under this Act in the State or Union territory, other than special category States, from where he makes a taxable supply of goods or services or both, if his aggregate turnover in a financial year excee

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sues –
* Nil rate is a rate in tax hence the supplier making Nil Rated supply is also liable for registration in spite of the fact there is no liability of GST on him. Should the NIL Rated Supply be not included in the definition of Taxable Supply for the purpose of this Section and Section 23 which deals with the situation where no registration is required?
* GST is a Destination Based Taxation it means the consumer state will have the right over Tax Revenue however registration process is on Origination Based. Further all the compliances related to GST has to complied with State Authority from where he is making a supply ( it is being assumed that the supplier is allotted to State Authority). This means all the expenses of GST Departm

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GST Charcha: Consultancy and support services aren’t composite supply in GST
By: – Bimal jain
Goods and Services Tax – GST
Dated:- 20-7-2018

GST Charcha: Consultancy and support services aren't composite supply in GST
Facts of the case: M/s Five Star Shipping (“the Applicant” or “FSS”) is a partnership firm providing Marine Consultancy Services (“MCS”) to Indian/ Foreign ship owners. MCS provided by the applicant includes following types of services:
• Consultancy services viz. analyzing commodity, shipping & freight market (i.e. collecting marketing intelligence and updates) which is disbursed to the ship owners along with finding potential charters for the foreign ship owners.
• Support services viz. monitoring voyage execution for smooth & efficient operations, optimizing global trade & revenue for ship owners, examine lay time calculations, arranges for reconciliation of accounts for eventual settlement with the charters.
The Applicant was paid fee a

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OR ADVANCE RULING – MAHARASHTRA ]Order No. GST-ARA-18/2017-18/B-26, Mumbai dated April 18, 2018, perused the Agreement for supplying MCS services and ruled as under:
• Provision of MCS does not constitute composite supply in GST on account of following:
* Both services have been specifically set out in the Agreement and there is no guarantee that any or all the services will be assigned to the Applicant;
* Foreign ship owner is at liberty to appoint other consultant(s) for part of the activities;
* By specific design of the contract, any service which could not be identified and said to be the principal supply;
* To foreign ship owner, both the services are important, and none could be identified as principal supply.
• Supply of consultancy services, when supplied distinctively with separate fee shall not fall under category of 'Management consultancy' as consultancy services provided by the Applicant are not in nature of guiding ship owning company in the managemen

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ient to choose the services he wants. Fact that foreign ship owner is at liberty to appoint other consultant(s) for part of the activities, may not be taken as the deciding factor. If so happens then the illustration provided in Section 2(30) of the CGST Act, 2017, which states that “where goods are packed and transported with insurance, the supply of goods, packing materials, transport and insurance is a composite supply and supply of goods is a principal supply”, would also become futile. Here also, the party is at liberty to choose or not to choose any or all of the services with supply of goods.
Reference may further be drawn from ruling of Hon'ble AAR, West Bengal in the application filed by In Re : M/s Global Reach Education Services Pvt Ltd, 2018 (4) TMI 808 – AUTHORITY FOR ADVANCE RULING, WEST BENGAL where the applicant was engaged in overseas education advisory, promoting various courses of foreign Universities in India among prospective students, making the prospective stude

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