EOUs Benefit from IGST and Compensation Cess Exemption on Imported Goods Until March 31, 2018.
Notifications
Customs
Goods imported by EOU shall be exempted from IGST and compensation cess le
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consumption
Query (Issue) Started By: – arun aggarwal Dated:- 11-12-2017 Last Reply Date:- 11-12-2017 Goods and Services Tax – GST
Got 5 Replies
GST
Sir,
I want to understand the difference between the local consumption and local sales under the GST regime if any .
Any commodity sold locally in the same state after charging SGST and CGST not necessarily will be consumed in the same state and can be sold further to any other state after charging IGST.
The problem may arise where the sales/clearances made by the units availing the area based exemptions and after getting some benefits in the SGST and CGST from the state govt on the local consumption and which in return can be further sold to some other state after charging IGST
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traded goods on payment of GST
Area based exemption unit will be eligible for budgetary support .
The application for imbursement of budgetary support shall be made by the eligible unit after the payment of CGST/IGST has been made, for the quarter to which the claim relates, in cash, in respect of specified goods after utilization of Input Tax credit, if any.
Thus even for area based exemptions , GST has to be paid and then budgetory support will be provided .
Regards
Reply By arun aggarwal:
The Reply:
Madam .
Does that means local consumption and local sales have the same meaning under GST?
Reply By ANITA BHADRA:
The Reply:
Sales and consumption are two different terms . The term sales has been replaced with Supply but consumptio
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Court Rules 2% VAT Applies to Pre-July 2017 Works Contracts, Not GST; Directs Commissioner for Action.
Case-Laws
GST
Rate of tax of GST – works contract – case of petitioners is that the cont
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ABSENCE OF TRANSIT DECLARATION FORM
By: – DR.MARIAPPAN GOVINDARAJAN
Goods and Services Tax – GST
Dated:- 11-12-2017
Vide Order No. 31 of 2017, dated 21.07.2017 the Governor of Uttar Pradesh specified the documents that a person in charge of a conveyance carrying any consignment of goods shall carry while the goods are in movement or in transit storage in Uttar Pradesh. Para 4 of the said order prescribes that in case of transportation of taxable goods valuing ₹ 5,000/- or more from a place outside Uttar Pradesh place outside the State, the Form TDF – 1 shall be carried with such good during the transportation of goods or their transit storage within the State and on the exit of goods from the State, the information shall be provided in Form TDF – 2 (Transit Declaration Form). The said forms shall be downloaded by the procedure prescribed by the Commissioner, State Tax/Commercial Tax from the website of the Department http://comtax.up.nic.in. Thus while the goods a
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of tax invoice, dated 25.10.2017 the goods the IGST and the Compensation cess values at Res.17,42,400/- and ₹ 11,88,000/- respectively. These values have been mentioned at ₹ 5,54,000/-and ₹ 11,88,000/- in copy of tax invoice dated 25.10.2017 filed along with the reply furnished by the petitioner.
The Authority noticing the above said discrepancy, without issuing any other or proper notice, passed the seizure order. In the seized order it has been indicated that there was an intention to evade tax by the petitioner. Consequently the penalty order has been passed on 31.10.2017.
Against this order the petitioner approached the High Court invoking writ jurisdiction. The petitioner put forth the following submissions before the High Court-
* The detention and seizure had been made only on account of absence of transit declaration form;
* No other ground had been disclosed to the petitioner at that stage;
* The seizure had been made ex-parte though the movement of
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r give reply to the allegation on which goods have been seized. The petitioner had no notice or opportunity to explain his conduct with respect to the discrepancy in the tax invoice alleged in the seized order. The High Court considered it proper to set aside the orders dated 28.10.2017 and 31.10.2017 passed under section 129(1) and 129(3) of Uttar Pradesh Goods and Services Tax Act, 2017. The High Court remitted the matter to the respondent No. 4. The High Court further directed that the petitioner shall treat the seizure order dated 28.10.2017 to be a show cause notice in respect of the charge leveled against it. The petitioner shall filed the reply thereto before the respondent No. 4 within a period of one week from the date of order (i.e., 01.12.2017). Upon such reply furnish the respondent No. 4 shall have one week thereafter to pass a fresh order, in accordance with law. Since there is no allegation against the vehicle in respect to the same may be released in the meanwhile witho
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A Brief note on Anti-Profiteering Clause
By: – Prasanna CP
Goods and Services Tax – GST
Dated:- 11-12-2017
Anti-profiteering rules are as result of lessons learnt from inflation and increased price that was witnessed after GST implementation in other countries, Hence it makes more important for the Indian Administrators to keep track on the prices after implementation of GST.
The section which empowers the Anti-Profiteering measures is reproduced as follows:
Section 171 of CGST Act: “Any reduction in rate of tax on any supply of goods or services or the benefit of input tax credit shall be passed on to the recipient by way of commensurate reduction in prices.”
The Central Government, on recommendations of the Council, by
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t of input tax credit to the recipient by way of commensurate reduction in prices
to order:
* reduction in prices
* return to the recipient, an amount equivalent to the amount not passed on by way of commensurate reduction in prices along with interest at the rate of eighteen per cent. from the date of collection of the higher amount till the date of the return of such amount.
* or recovery of the amount not returned in case the eligible person does not claim return of the amount or is not identifiable, and depositing the same in the Consumer Welfare Fund.
* Imposition of penalty.
* Cancellation of registration.
Government seems to push hard with this Clause to ensure the end consumers are benefited and business entity need to
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GST for Services
Query (Issue) Started By: – suvetha purushothaman Dated:- 11-12-2017 Last Reply Date:- 11-12-2017 Goods and Services Tax – GST
Got 2 Replies
GST
Hi,
I am providing Web Designing, Domain Registration and hosting services. I have purchased Google apps for a client in Dubai. Kindly, please let me know whether i have put GST for that client. Because I am paying GST for Google apps. Can anyone please guide me.
Thank You
Reply By ANITA BHADRA:
The Reply:
Dear Sir
You need not to put GST for client in Dubai . You can claim refund of input Tax ( paid for Google Apps) .
You have two options – pay IGST at the time of export and claim refund . or export under LUT without paying IGST and claim for input Tax refund
,
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Gmmco Limited, Hafele India Private Limited Versus Union of India & Another
GST
2017 (12) TMI 1069 – DELHI HIGH COURT – TMI
DELHI HIGH COURT – HC
Dated:- 11-12-2017
W.P.(C) 9539/2017, C.M. APPL.38777/2017, W.P.(C) 9572/2017, C.M. APPL.38984/2017
GST
S. Ravindra Bhat And Sanjeev Sachdeva, JJ.
For the Petitioner : Sh. Abhishek Rastogi, Sh. Ankit Shah and Sh. Gaurav Sharma, Advocates
For the Respondent : Sh. Sanjeev Narula, CGSC with Sh. Sarfaraz Ahmad and Sh. Abhishek Ghai,
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ITC on works contracts
Query (Issue) Started By: – pradeep kumar Dated:- 10-12-2017 Last Reply Date:- 11-12-2017 Goods and Services Tax – GST
Got 4 Replies
GST
Hi experts, i have some doubts regardind the works contracts of 1
1.repair and maintainces of restarunts,banquiet hall,captria,kichen can i take ITC or not
2.electrical items and fittings above like restarunts,captria etc can i takd itc or not
3.if they how to accounted for like value-100+gst-10=110 can u brief me experts
4.what about treatment of capital assets like above exmple thanks in advance
Reply By ANITA BHADRA:
The Reply:
Dear Sir
as per Sec. 2(119) of CGST Act. ” Works Contract” means a contract for building, construction, fabrication ,completion, erecti
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is not admissible. I agree with Ms.Anita Bhadra, an expert. Repair & maintenance pertain to immovable property. Embedded into earth.
Reply By Vamsi Krishna:
The Reply:
Sorry ,, there was a typing error in my previous message.. Ref the words in bold letters..
Works contract under GST is limited to contracts to do with Immovable property. (ref sec.2(119) where it is clearly defined).
Sec.17(5) of CGST act mentions clearly that " works contract services when supplied for construction of immovable property is ineligible for credit except where it is for further supply of works contract services.
In your example the output services like restaurants, halls, cafeteria etc are not works contract services and therefore you are not entitle
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Extends the period for submitting the declaration in FORM GST TRAN-1 till 27th December, 2017
39/2017 Dated:- 10-12-2017 Telangana SGST
GST – States
Telangana SGST
Telangana SGST
GOVERNMENT OF TELANGANA
COMMERCIAL TAXES DEPARTMENT
TGST Notification No. 39/2017
CCT's Ref No. A(1)/120/2017
Dt. 10-12-2017
In exercise of the powers conferred by rule 120A of the Telangana Goods and Services Tax Rules, 2017 read with section 168 of the Telangana Goods and Services Tax Act, 2017, th
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Compliance of GST Law & Procedure by Custodians at ACC
FACILITY NOTICE 24/2017 Dated:- 10-12-2017 Trade Notice
Customs
OFFICE OF THE COMMISSIONER OF CUSTOMS (Export)
AIR CARGO COMLEX
SAHAR ANDHERI (E), MUMBAI -400099.
F. No. S/3 – Misc 26/2017-18 E&T/(X), ACC
Date: 12.10.2017
FACILITY NOTICE 24/2017
Sub:- Compliance of GST Law & Procedure by Custodians at ACC-reg.
Kind attention of all Custodians, Airlines, Console Agents and other Stake holders is to the compliance of GST Law & Procedure at ACC. Mumbai and the special meetings held on 25.07.2017 and 11.08.2017,
2. Rule 33 of Central Good and Services Tax Rules, 2017 deals with the “value of supply of services in case of pure agent". In compliance to the rules MIAL has
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gent is solely responsible the GST details captured in the receipts and it is mandatory to generate the THC on-line, hence unregistered CHA may get themselves registered seamless transactions.
4. The following process is made availlble by MIAL, to facilitate the trade:
(a) MIAL will provide a data field column option in the custodian management system for updating the required GST details.
(b) It's mandatory to generate the THC receipts online through custodian management system by the Importer/Exporter/Customs broker.
5. For smooth functioning, Importer/Exporter/Consignee and CHAs/CBs are advised to follow the SOP as circulated by the Custodian.
7. Difficulties, if any, faced in the implementation of this Public Notice may be br
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How to avail Input Tax Credit of GST on Airline Bills
Query (Issue) Started By: – Shekhar Joshi Dated:- 9-12-2017 Last Reply Date:- 13-12-2017 Goods and Services Tax – GST
Got 2 Replies
GST
We are a manufacturer of goods and for the business purpose we often use Airline Services for business travelling. Some Airlines use word K3 Tax for GST amount. Now the question is how can we get ITC of such GST amount where as it is not confirmed that whether it is CGST & SGST or IGST. What is the current practice which others are following in the new GST regime? how they are getting Invoices?
Pls. Advice
Reply By PAWAN KUMAR:
The Reply:
Dear Sir,
K3 tax code is used for tax charged on airline invoice. Place of supply will be the sched
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Furthermore, you will get the ITC reflected in your GSTR-2A/2.
Sec 12(9) of IGST Act: The place of supply of passenger transportation service to,-
(a) a registered person, shall be the location of such person;
(b) a person other than a registered person, shall be the place where the passenger embarks on the conveyance for a continuous journey:
Provided that where the right to passage is given for future use and the point of embarkation is not known at the time of issue of right to passage, the place of supply of such service shall be determined in accordance with the provisions of sub-section (2).
Explanation.For the purposes of this sub-section, the return journey shall be treated as a separate journey, even if the right to passage f
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Refund of credit accumulated due to tax rate difference
Query (Issue) Started By: – Gorantla Bhaskar Rao Dated:- 9-12-2017 Last Reply Date:- 14-12-2017 Goods and Services Tax – GST
Got 4 Replies
GST
sir,
A party has filed application for refund of credit accumulated due to tax rate difference under GST. The party's inputs attract higher rate of duty than the rate of duty attracted on his output and thus he accumulated credit. Is he eligible for refund in cash under GST. As of now GST portal for refunds is not working and hence filed manually for sanction of refund. Is he eligible for the refund of the amount in cash even if he files manually. What is the time period for sanction of the same and under what provisions ? What
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IRCTC AND GST
By: – DR.MARIAPPAN GOVINDARAJAN
Goods and Services Tax – GST
Dated:- 9-12-2017
E-ticket
Now it is common to book railway tickets in advance electronically. On booking of the ticket we may take the hard copy of the ticket that may be shown to the checker at the time of travel. We will also received SMS immediately on the booking indicating the PNR number, train number, date of travel, Class, seat number. At the time of travel showing the SMS is enough for travel along with showing of identity card such as PAN card or aadhar card or voter ID card.
In the advanced technology we almost neglect to take hardcopy of the e-ticket. Even if we take the hard copy we only notice the train time, seat number, birth allotted, departure time, arrival time only. No one will read the entire contents in the ticket.
While I was travelling from Madurai to Chennai on 29.11.2017 by Pearl City Express (Train No. 12694) in second AC, due to time availability I happened to read
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tax shall be made only after Ministry of Railways gets refund from the Central Excise Department. The cancelled ticket shall be treated as credit note for getting refund of service tax amount.
Fare Details
In the said ticket the fare details are given as below-
* Ticket Fare (inclusive of GST ₹ 54.54.) = ₹ 1150/-
* IRCTC Service charge (Inclusive of GST) = ₹ 0/-
* Travel Insurance premium (inclusive of GST) = Rs/.0/-
* Total fare (all inclusive) = ₹ 1150/-
GST details
In the ticket the Indian Railways GST details are indicated as below-
Supplier information
* Invoice No. PS17413798846211 (inclusive of PNR No- PNR No. is 4137988462)
* Address – Indian Railways, New Delhi.
* SAC Code – 996421 (Long distance transport services of passengers through rail network by railways for distance beyond 150 kms. )
* GSTIN – 07AAAGM)289C1ZL
Recipient information
* GSTIN;
* Name;
* Address
(Since I am unregistered person under GST the above informat
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st Class coachesof special train/coaches on FTR;
* All other type of first class and AC class coaches, if any.
* The rate of GST shall be 5% on total fares as per the logic of application, GST Vide Appendix A;
* As regard duty pass, privilege pass, any other complimentary passeswhich are not reimbursed to railways etc., and where no money transaction is involved, GST shall not be levied.
* On concessional tickets/Privilege Ticket Orders (PTO) tickets, etc., GST shall be levied at the prescribed rate on total actual fare collected after concession/rebate.
* The GST amount shall not be rounded off.In case of showing separate amount for CGST and SGST/UTGST in that case also GST amount shall be separately mentioned up to two decimal place.As regards rounding of charging fare, after levy of GST on the total fare charged including Superfast Surcharge, reservation fee etc., as applicable therefore it shall be rounded off as per approved principles.
* As per provisions of GST, cert
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posed above.
* In case tickets were booked in advance along with service tax for journeys to commence on or after the date of implementation of GST, the GST difference of fare shall not be collected on the tickets booked in advance.This shall be applicable on tickets issued on or after 01.07.2017.
* In case of mobile tickets, location of supplier shall be originating station and mobile tickets shall be issued only to unregistered users.
* Commercial Inspectors and TIAs should visit all important stations and ensure that GST is levied on tickets issued as per GST rules.Commercial Officer should also make surprise checks at the stations and ensure that GST is levied from the date of its implementation.
* All other terms and conditions shall be followed as per approach paper for implementation of GST mentioned above.
Logic for GST application (Passenger)
Concepts
Place of supply
* In case of registered customer – place of registration of the customer;
* In case of unregist
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tate
* In case of unregistered customer if the place from where the ticket or invoice is issued are in the same State and the place of embarkation are in the differentState it will be intra State.
GST on static catering services
The issue of implementation of Goods and Service Tax (GST) on Catering Services on Indian Railway has been examined in consultation of Finance Commercial Dte. of Railway Board and accordingly issued Commercial circular No. 79 of 2017, dated 01.12.2017 in which the following are advised-
* The chargeable GST on catering services in static catering units / parliament canteen is @ 5% with no Input Tax Credit (ITC).
* The above GST on catering charges through Static units is applicable w.e.f 15.11.2017.
* The rates notified vide Commercial Circular No. 78 of 2012 (which gives revised tariff for tea/coffee, breakfast and standard meals)will remain unchanged after applicability of GST but are now inclusive of GST @5% for static catering units.
Scholarly
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GST UPDATE ON REVERSAL OF ITC IN CASE OF GOODS LOST BY FIRE
By: – Pradeep Jain
Goods and Services Tax – GST
Dated:- 9-12-2017
In GST regime, the scope of definition of inputs, capital goods and input services is very wide and covers almost all the imaginable goods and services that are directly or indirectly used in course or furtherance of business. However, section 17(5) prescribes a list of goods or services on which ITC is not admissible. The opening para of section 17(5) of CGST Act, 2017 reads as follows:-
"(5) Notwithstanding anything contained in sub-section (1) of section 16 and sub-section (1) of section 18, input tax credit shall not be available in respect of the following, namely:-
……
……
(h) goods lost, stolen, destroyed, written off or disposed of by way of gift or free samples; "
The bare analysis of above section makes it clear that this section has overriding effect and it states that the ITC shall not be available in respect of g
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ore, the ITC shall not be allowed on the same.
By analyzing both the views, the authors of this update find that the definition of inputs and capital goods use the phrase "used or intended to be used in course or furtherance of business". Since this condition is to be checked at the time of admissibility of ITC and at that time the goods lost, stolen or destroyed were intended to be used in course or furtherance of business, the ITC was legally availed. It is worthwhile to mention here that once ITC is legitimately availed, it cannot be demanded back without a specific provision in this regard. There is no provision for demanding the ITC on inputs, capital goods and input services that have already been used for manufacture of finished goods that are lost or stolen or damaged. There is only one provision under clause (h) of section 17(5) of CGST Act, 2017 which talks of reversal on inputs or capital goods or input services itself. Further, there is no such provision of rever
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n the ITC cannot be demanded on the input content in the finished goods lost or destroyed. The content of this GST update is for educational purpose only and not intended for solicitation.
You can reach us at www.capradeepjain.com, at our facebook page on https://www.facebook.com/GSTTODAYBYPRADEEPJAIN/ as well as follow us on Twitter at https://www.twitter.com/@capradeepjain21
Reply By JAIPRAKASH RUIA as =
Good !
If a manufacturer buy gift and give to customer. whether the ITC of GST paid on gift purchased is available to manufacturer please?
Dated: 11-12-2017
Reply By Manoj Sharma as =
Though the words used at the beginning of subsection 5 are "no ITC shall be available" I guess the real intention of Section 17(5)(h) is to define reversal. You do not know which goods you are going to distribute as gift or sample or which goods are gonna destroyed. The indirect meaning of this wording is that you take ITC at the arrival of goods but you have to reverse it when you di
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Frequently Asked Questions – GST
GST
Dated:- 9-12-2017
Q. I have submitted Bank guarantee and bond for export purpose. Now as per notification no. 37/2017-Centra Tax, I am eligible to export under LUT. When can I take back BG & bond and instead submit LUT?
Ans. You can do it now. It came into force from 04.10.2017
Q. Do charitable trust having donation receipt above ₹ 20 Lacs and scrap sale of ₹ 1,000 required to obtain Registration?
Ans. No.
Q. I want the notification that explains the latest changes (10th November) made in branded and non branded food products ?
Ans. Please refer to Notification Nos. 41/2017-Central Tax (Rate) and 42/2017-Central Tax (Rate)
Q. Registered job worker is in another state. Can
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Sale in approval bases under circular 10/2017 C.Tax Rate
Query (Issue) Started By: – Hasmukh Patel Dated:- 9-12-2017 Last Reply Date:- 13-12-2017 Goods and Services Tax – GST
Got 3 Replies
GST
Dear Sir,
We are supplier-manufacture of INTRAOCULAR LENSES -HSN CODE 9021. We directly supply it to doctors. The doctors are generate library-stocks of various lenses ( power , diameter and company wise). As per requirement of patient, they utilize our lenses. As per new circular 10/2017 C.Tax Rate, we can supply our lenses under approval bases under challans and issue invoice as per consumption of lenses by doctors?
Your reply is very-very helpful for our business.
Reply By PAWAN KUMAR:
The Reply:
As per my view, your case does not
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nses under approval bases under challans and issue invoice as per consumption of lenses by doctors?
Your reply is very-very helpful for our business.
–
Your query will be answered within 24 hours.
Yours Sincerely,
The GSTClub.in Team
Reply By CS SANJAY MALHOTRA:
The Reply:
Dear Mr. Patel,
Yes, you can follow the process of Sales under approval basis, provided the contract is worded accordingly. Contract should specifically mentions of that stock ownership remains with you and upon its sales/ consumption by doctors, Invoice shall be raised or else the material after specific period shall be brought back.
Maximum period under GST for sales on approval basis is 6 months from date of Issue of Delivery Challan or else the same is treated
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GST Exemption for R&D Center Continues Until Registration Validity; Further Clarification Needed on Right to Claim Exemption.
Case-Laws
Customs
Continuation of exemption under GST regime – co
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Place of supply
Query (Issue) Started By: – Archna Gupta Dated:- 8-12-2017 Last Reply Date:- 14-12-2017 Goods and Services Tax – GST
Got 3 Replies
GST
Dear Sir,Please reply to below mentioned query:One of our clients handles cargo and tourist chartered flights of our foreign clients coming from outside India and landing in India (anywhere in India) and specifically provides the following services:•Flight Supervision and Airline Representation• Ground Operation Supervision• Ground Handling Arrangements.• Air Traffic Rights Over-flight / Landing Clearances • Obtaining Slots (Arrival/Departure)• In-flight catering arrangements • Hotel Accommodation and tourism arrangements• Assistance in Imm
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ravel Agent.
Sec 10 of IGST Act – Place of Supply of services where the location of the Supplier of service or the location of recipient of service is outside India – Place of Supply will be the location where services are actually performed
Since place of supply is in India – services provided by your client can not be considered as export.
Regards
Reply By PAWAN KUMAR:
The Reply:
As per my view, since the services being provided by your client as intermediary services as per section 2(13) of IGST Act. Section 8(b) provided that in case of intermediary services, the place of supply will be the location of supplier of service, hence place of supply will be India. The transaction will not qualify as export.
As per the definition under
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Refund under GST
Query (Issue) Started By: – Jasbir Uppal Dated:- 8-12-2017 Last Reply Date:- 3-2-2018 Goods and Services Tax – GST
Got 1 Reply
GST
Dear Professionals
I have following queries :-
1) Refund of duties paid for stock left on 30th June and utilized post GST implementation.
2)The duty drawback paid on goods starting from 01 July 2017 to 30 Sep 2017 post duty drawback scheme withdrawn, refund on these duty paid goods.
3) Procedure for refund under the above mentioned
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GST for Job Work
Query (Issue) Started By: – Balaji VM Dated:- 8-12-2017 Last Reply Date:- 10-1-2018 Goods and Services Tax – GST
Got 2 Replies
GST
We are doing Job work of Fish Processing for outside party. After processing they will Export. Kindly confirm whether we have to charge GST.
Reply By Rajagopalan Ranganathan:
The Reply:
Sir,
As per section 143 (1) (b) of CGST Act, 2017 "A registered person (hereafter in this section referred to as the “principal”) may under intimation and subject to such conditions as may be prescribed, send any inputs or capital goods, without payment of tax, to a job worker for job work and from there subsequently send to another job worker and likewise, and shall supply such inputs, after
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Frequently Asked Questions – GST
GST
Dated:- 8-12-2017
Q. I export vegetables, Where do I file in FORM GSTR -3B – Zero rate goods or Nil rated goods?
Ans. Zero rated goods.
Q. What is the date of applicability of e-Way Bill System. Some are saying that it has been made applicable for 12/09
Ans. Central Government has not notified the enforcement of e-Way bill rules. Till that time State e-Way bill, if any, would be applicable.
Q. Want to opt for composition scheme. When will be
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GST UPDATE ON REVERSAL OF ITC IN CASE OF REDUCTION IN TAX RATE ON RESTAURANT SERVICES
By: – Pradeep Jain
Goods and Services Tax – GST
Dated:- 8-12-2017
In 23rd meeting of GST Council, it was decided to reduce the tax rate on restaurant services with no facility of ITC. Notification no. 46/2017-Central Tax (Rate) dt. 14-11-2017 has been issued to implement this decision. This notification prescribes the rate of tax at 2.5% CGST on standalone restaurants and restaurants situated in hotel, club, guest house, etc. which has declared tariff of any room less than ₹ 7500/-. This rate is subject to the condition that no ITC is availed on the goods and services used for providing this service. This notification is effective fro
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IA [ 1999 (1) TMI 34 – SUPREME COURT OF INDIA ], hon'ble Supreme Court has held that the right to the credit has become absolute at any rate when the input is used in the manufacture of the final product. The basic postulate, that the scheme is merely being altered and, therefore, does not have any retrospective or retro-active effect. In view of this decision, we can conclude that the once ITC is legitimately availed, it cannot be taken back. Similarly, hon'ble Rajasthan High Court in the case of SHANKESHWAR FABRICS PRIVATE LTD. Versus UNION OF INDIA [ 2001 (8) TMI 139 – RAJASTHAN HIGH COURT ] has held that "Right to Modvat credit accrues to assessee on the date he pays tax on raw materials or inputs – Credit having been taken
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t cannot be demanded back without authority of law. Therefore, demanding back the rightfully availed credit without any specific provision in law is not viable. It is worthwhile to mention here that the system of reversal of ITC is there only if the supply becomes wholly exempted.
There is no such provision if the partial exemption is granted, i.e. rate is reduced to some extent. In view of above discussion, in absence of any specific provision in this regard, we can safely claim that the decision of Supreme Court as discussed above is still applicable and any demand on the credit rightfully availed will not survive.
The content of this GST update is for educational purpose only and not intended for solicitation.
You can reach us at www.
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APPLICABILITY OF IGST/GST ON GOODS TRANSFERRED/SOLD WHILE BEING DEPOSITED IN WAREHOUSE
By: – DR.MARIAPPAN GOVINDARAJAN
Goods and Services Tax – GST
Dated:- 8-12-2017
Depositing of goods in warehouses
Chapter IX of the Customs Act, 1962 ('Act' for short) provides for warehousing. This chapter provides for deposit of goods into a customs bonded warehouse. A warehouse is licensed under section 57of the Act as a public warehouse; under section 58 of the Act as a private warehouse; under section 58A of the Act as a special warehouses. The goods may be deposited in such warehouses without payment of duty. Section 59(5) provides that where the whole of the goods or any part thereof are transferred to another person. For this, the transferee shall execute a bond in a sum equal to thrice the amount of duty assessed on such goods. The Assistant Commissioner of Customs or Deputy Commissioner of Customs may permit an importer to execute a general bond in such amount as the Assista
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for home consumption under section 46, on the date on which a bill of entry in respect of such goods is presented under that section;
* in the case of goods cleared from a warehouse under section 68, on the date on which a bill of entry for home consumption in respect of such goods is presented under that section;
* in the case of any other goods, on the date of payment of duty :
* if a bill of entry has been presented before the date of entry inwards of the vessel or the arrival of the aircraft 1[or the vehicle] by which the goods are imported, the bill of entry shall be deemed to have been presented on the date of such entry inwards or the arrival, as the case may be.
There is no provision to vary the assessable value of the goods at ex-bond stage unless they are such goods on which tariff valuation applies. Hence, basic customs duty and IGST shall be paid on the imported goods at the stage of exbonding on the value determined under Section 14 of the Act.
Sale/transfer of goo
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ditional taxable event
The circular indicated that in respect of goods stored in a customs bonded warehouse, there is a possibility that certain cases may involve an additional taxable event, if a transfer of ownership of warehoused goods takes place between the importer and another person, before clearance of goods, whether for home consumption or export.
Deferment of customs duty
The circular clarified that so long as the goods remain deposited in the warehouse the customs duty to be collected shall remain deferred. It is only when such goods are ex-bonded under section 68 of the Act, shall the deferred duty be collected at the value as had been determined under section 14 of the Act in addition to the integrated tax leviable.
Example
The circular gives on example in bond sales and clearance thereof.
* Goods imported by A on 02.07.2017 – importer wants to deposit the goods in the bonded warehouse to defer customs duty;
* Importer files an 'into-bond bill of entry' and the go
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Andhra Pradesh Goods and Services Tax (Twelth Amendment) Rules, 2017.
G.O.MS.No. 581 Dated:- 8-12-2017 Andhra Pradesh SGST
GST – States
Andhra Pradesh SGST
Andhra Pradesh SGST
GOVERNMENT OF ANDHRA PRADESH
–
REVENUE (COMMERCIAL TAXES-II) DEPARTMENT
G.O.MS.No. 581 Dated: 08-12-2017
NOTIFICATION
In exercise of the powers conferred by section 164 of the Andhra Pradesh Goods and Services Tax Act, 2017 (16 of 2017), the Government, on the recommendation of the Goods and Services Tax Council, hereby makes the following rules further to amend the Andhra Pradesh Goods and Services Tax Rules, 2017, issued vide G.O.Ms.No.227, Revenue (CT-II) Dept., Dt.22-06-2017 as subsequently amended.
1. (i) These rules may be called the Andhra Pradesh Goods and Services Tax (Twelth Amendment) Rules, 2017.
(ii) They shall be deemed to have come into force with effect on and from 15th November,2017.
AMENDMENTS
2. In the Andhra Pradesh Goods and Services Tax Rules, 2017, –
(i) in rule 43
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or electronic issuance of a notice, order or certificate on the common portal shall, in respect of that process or procedure, include manual filing of the said application, intimation, reply, declaration, statement or issuance of the said notice, order or certificate in such Forms as appended to these rules.”;
(iv) after rule 107, the following rule shall be inserted, namely:-
“107A. Manual filing and processing. – Notwithstanding anything contained in this Chapter, in respect of any process or procedure prescribed herein, any reference to electronic filing of an application, intimation, reply, declaration, statement or electronic issuance of a notice, order or certificate on the common portal shall, in respect of that process or procedure, include manual filing of the said application, intimation, reply, declaration, statement or issuance of the said notice, order or certificate in such Forms as appended to these rules.”;
(v) after rule 109, the following rule shall be inserted, n
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rules 89(1) and 97A]
Application for Refund (Manual)
(Applicable for casual taxable person or non-resident taxable person, tax deductor, tax collector and other registered taxable person)
1.
GSTIN / Temporary ID
2.
Legal Name
3.
Trade Name, if any
4.
Address
5.
Tax period (if applicable)
From To
6.
Amount of Refund Claimed (Rs)
Act
Tax
Interest
Penalty
Fees
Others
Total
Central tax
State/UT tax
Integrated tax
Cess
Total
7.
Grounds of Refund Claim (select from drop down)
(a)
Excess balance in Electronic Cash Ledger
(b)
Exports of services- with payment of tax
(c)
Exports of goods/services- without payment of tax (accumulated ITC)
(d)
ITC accumulated due to inverted tax structure[under clause (ii) of first proviso to section 54(3)]
(e)
On account of supplies made to SEZ unit/SEZ developer(with payment of tax)
(f)
On account of supplies made to SEZ unit/SEZ developer (without payment of tax)
(g)
Recipient of deemed export
DECLARATION [secon
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pect of the refund amounting to Rs. / with respect to the tax, interest, or any other amount for the period fromto-, claimed in the refund application, the incidence of such tax and interest has not been passed on to any other person.
Signature
Name –
Designation / Status
(This Declaration is not required to be furnished by applicants, who are claiming refund under clause (a) or clause (b) or clause (c) or clause (d) or clause (f) of sub-section (8) of section 54.)
8. Verification
I/We hereby solemnly affirm and declare that the information given herein above is true and correct to the best of my/our knowledge and belief and nothing has been concealed therefrom.
I/We declare that no refund on this account has been received by me/us earlier.
Place
Date
Signature of Authorised Signatory
(Name)
Designation/ Status
Annexure-1
Statement -1 [rule 89(5)]
Refund Type: ITC accumulated due to inverted tax structure [clause (ii) of first proviso to section 54(3)]
(Amount in Rs.)
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e
5.
Reason of Refund
6.
Financial Year
7.
Month
8.
Order No.:
9.
Order issuance Date:
10.
Payment Advice No.:
11.
Payment Advice Date:
12.
Refund Issued To:
Drop down: Taxpayer/Consumer Welfare Fund
13.
Issued by:
14.
Remarks:
15.
Type of Order
Drop Down: RFD- 04/ 06/ 07 (Part A)
16.
Details of Refund Amount (As per the manually issued Order):
Description
Integrated Tax
Central Tax
State/UT tax
Cess
Tax
Interest
Penalty
Fees
Othes
Total
Tax
Interest
Penalty
Fees
Othes
Total
Tax
Interest
Penalty
Fees
Othes
Total
Tax
Interest
Penalty
Fees
Othes
Total
a. Refund amount claimed
b. Refund Sanctioned on provisional basis
c. Remaining Amount
d. Refund amount inadmissible
e. Gross amount to be paid
f. Interest (if any)
g. Amount adjusted against outstanding demand under the existing law or under the Act
h. Net amount to be paid
17.
Attachments (Orders)
RFD-04; RFD- 06; RFD 07 (Part A)
Date:
Place:
Signature (DSC):
Name:
De
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The Himachal Pradesh Goods and Services Tax (Fourteenth Amendment) Rules, 2017.
34/2017-State Tax Dated:- 8-12-2017 Himachal Pradesh SGST
GST – States
Himachal Pradesh SGST
Himachal Pradesh SGST
Government of Himachal Pradesh
Excise and Taxation Department
Dated Shimla-2 the 8th December, 2017
Notification No. 34/2017-State Tax
No.EXN-F(10)-34/2017.- In exercise of the powers conferred by section 164 of the Himachal Pradesh Goods and Services Tax Act, 2017(10 of 2017), the Governor of Himachal Pradesh is pleased to make the following rules further to amend the Himachal Pradesh Goods and Services Tax Rules, 2017, namely :-
(1) These rules may be called the Himachal Pradesh Goods and Services Tax (Fourteenth Amendment) Rules, 2017.
(2) Save as otherwise provided in these rules, they shall come into force on the date of their publication in the Official Gazette.
2. In the Himachal Pradesh Goods and Services Tax Rules, 2017, (hereinafter referred to as the principal r
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ts, figure and letter “or sub-rule (3A)” shall be inserted;
3. In the principal rules, after rule 120, the following rule shall be inserted, namely:-
“120A. Every registered person who has submitted a declaration electronically in FORM GST TRAN-1 within the time period specified in rule 117, rule 118, rule 119 and rule 120 may revise such declaration once and submit the revised declaration in FORM GST TRAN-1 electronically on the common portal within the time period specified in the said rules or such further period as may be extended by the Commissioner in this behalf.”;
4. In the principal rules, in rule 122, in clause (b), after the words “Commissioners of State tax or central tax”, the words “for at least one year” shall be inserted;
5. In the principal rules, in rule 124, –
(i) for sub-rule (3), the following sub-rule shall be substituted, namely:-
“(3) The Technical Member shall be paid a monthly salary and other allowances and benefits as are admissible to him when holdin
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ii), the following clause shall be inserted, namely:-
“(iv) to furnish a performance report to the Council by the tenth of the close of each quarter.”;
7. In the principal rules, in rule 138, in sub-rule (1), the following provisos shall be inserted, namely:-
“Provided that where goods are sent by a principal located in one State to a job-worker located in any other State, the e-way bill shall be generated by the principal irrespective of the value of the consignment:
Provided further that where handicraft goods are transported from one State to another by a person who has been exempted from the requirement of obtaining registration under clauses (i) and (ii) of section 24, the e-way bill shall be generated by the said person irrespective of the value of the consignment.
Explanation – For the purposes of this rule, the expression “handicraft goods” has the meaning as assigned to it in this Department Notification No.32/2017-STATE TAX dated 9.10.2017 published in the Rajpatra, Hia
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