Author: admin_gst

Goods and Services Tax – Started By: – SURYAKANT MITHBAVKAR – Dated:- 14-7-2017 Last Replied Date:- 14-7-2017 – We are manufacturing Pharmaceutical Machinery having Domestic Sale and two type of export. i.e. Manufacturing Export & Treading Export (Earlier Under B1 Bond-CT-1) In Manufacturing Export we have exported our Machinery and Trading export we have buying from other Manufacturing unit and export the same. Now, in GST regime we have to buy machinery for trading export with payment of

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Goods and Services Tax – Started By: – Kavita Sharma – Dated:- 14-7-2017 Last Replied Date:- 14-7-2017 – Under composition rules, a dealer can not opt for composition scheme if his stock on the appointed day contains 2% CST Stock.My query is this, whether there is any way that he can opt for Composition scheme by paying the difference tax as in the case of stock purchased from unregistered dealer?RegardsKavita Sharma – Reply By Ganeshan Kalyani – The Reply = A registered person, whose aggregate turnover in the preceding financial year did not exceed seventy five lakh rupees, may opt to pay, in lieu of the tax payable by him, an amount calculated at such rate as may be prescribed subject to some condition. In my veiw there is no condition a

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ST. In terms of Rule 3(1) of the Composition Rules, the person exercising the option to pay tax u/s 10 i.e Composition levy, he has to comply with the certain cumulative conditions, out of which one condition is:- The Goods held in stock by him on the appointed day have not been purchased in the course of inter-state trade or commerce or imported from a place outside India or received from his branch situated outside the State or from his agent or principal outside the State, where the option is exercised under sub-rule (1) of Rule 1 In view of above rule , please review my query Regards – Reply By KASTURI SETHI – The Reply = After going through the above provisions cited by you, my reply is same. – Reply By MADAN RAHEJA – The Reply = On th

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Goods and Services Tax – GST – By: – Dr. Sanjiv Agarwal – Dated:- 14-7-2017 Last Replied Date:- 15-7-2017 – As India migrates to Goods and Services Tax (GST) in near future, as it is likely to, the economy will also move from a closed, multi-tax, non-efficient and non transparent indirect tax regime to a common GST regime which will be more productive, efficient, business friendly and transparent tax regime. All transitions are painful but then, they say, there is no gain without pain. To migrate from present indirect tax regime to GST regime, a major transition will take place – be it in economy, business, taxation or management front. Over-night, business entities will be made to comply with new tax law which may not be an easy exercise. It becomes a more complex one as multiple taxes will transit to one tax which requires both-transition or migration as well as merger of more than two taxes (18 State and Central taxes get subsumed into one GST which has three components viz, CGS, S

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42. Miscellaneous transitional provisions Long term contracts In case of job works, work contacts, long term or turnkey projects which are carried out over a period of time (not just short term or within a year), there will be transition issues as such projects or contracts will span over both tax regimes, i.e., present tax regime and proposed GST regime. Such contracts could be for the purpose of – Commercial or residential construction contracts Erection, commissioning or installation EPC contracts Turnkey projects Management, maintenance and repairs Continuous supply of goods and / or services on ongoing basis In all the above examples, wrong term contracts of works contracts / construction etc shall be subject to relevant transition provisions. Transitional provisions specifically in respect of long term construction or works contracts provides for treatment of long term construction contracts or works contracts. In respect of any supply of goods and/or services made in respect of

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is charged on happening of either the supply or payment whichever is first, any supply of goods and/or services made in respect of these contracts on or after the appointed day will be dealt with as follows- In case consideration, whether in full or part, for such supply of goods and/or services was received before the appointed day, and Tax or duty thereon was paid on receipt of such consideration as per earlier law, no tax would be payable under GST in respect of supply of such goods and/or services. In case of CGST, consideration can be received in full or in part(s). In case of SGST, there is no condition for receipt of consideration (full or in part) before the appointed day. If supply is made before the appointed day and duty or tax payable thereon has been paid under earlier law, no tax will be payable under GST. Suggestions For long term contracts, it would be desirable to review the existing contracts which may continue in GST regime for the following purposes – Ascertaining m

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Goods and Services Tax – GST – By: – Lakhvinder Singh – Dated:- 14-7-2017 Last Replied Date:- 21-7-2017 – A. Introductory provisions of reverse charge under GST Law. • In terms of section 9(1) of Central Goods and Services Tax Act, 2017, Central Goods and Services Tax (CGST) shall be levied on all intra-state supplies of goods & services or both except the supply of alcoholic liquor for human consumption. • In terms of section 5(1) of Integrated Goods and Services Tax Act, 2017, Integrated Goods and Services Tax (IGST) shall be levied on all inter-state supplies of goods & services or both except the supply of alcoholic liquor for human consumption. • However, by virtue of section 9(3) of Central Goods and Services Tax Act, 2017 and section 5(3) of Integrated Goods and Services Tax Act, 2017, the Government on recommendations of council may specify categories of supply of goods or services or both wherein tax shall be paid under reverse charge. Government has is

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rvices Tax Act, 2017: Reverse charge means the liability to pay tax by the recipient of the supply of the goods or services or both instead of the supplier of such goods or services or both under sub-section (3) or sub-section (4) of section 9, or under sub-section (3) or sub-section (4) of section 5 of the Integrated Goods & Services Tax Act. • Reverse charge is only a mode of collection of CGST/SGST or IGST on Supplies of goods and services where the service receiver (may be wholly or partially) will be liable to pay CGST/SGST or IGST to Government. • As per Section 9 of the CGST Act, 2017 there are two types of supplies which are liable to tax under reverse charge mechanism which are: Specified categories of supply of goods or services or both as notified under GST Law. Supply of taxable goods or services or both having value more than ₹ 5000/- per day by an unregistered supplier to a registered person. C. Reasons for Reverse Charge • Safeguarding the intere

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r law for the time being in force in any part of India. c) Any co-operative society established by or under any law. d) Any dealer of excisable goods, who is registered under the Central Excise Act, 1944 or the rules made there under. e) Any Body-corporate established, by or under any law; or f) Any partnership firm whether registered or not under any law including association of persons g) Casual Taxable Person Person who pays the freight shall be treated as receiver of service. Legal service Services provided by individual advocate or a firm of advocates including senior advocate. Service receiver should be a business entity in taxable territory. Liability of service receiver is 100%. Service provided to another advocate or firm of advocates; non business entity or business entity having turnover of less than ₹ 20 lacs in previous year exempted. Services of Arbitral Tribunal • Services provided by an arbitral tribunal. Service receiver should be a business entity in taxabl

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ver -Company or body corporate – liable for 100 % Services by An Insurance Agent Services provided by an insurance agent. • Service receiver is any person carrying on insurance business. Liability of service receiver – 100% Services by Recovery Agent Services provided by a Recovery Agent. Service receiver is Banking Company or Financial Institution or a non banking financial company. Liability of service receiver – 100% Goods Transportation up to Custom Station (Not Covered in CGST LAW) Services provided by way of transportation of goods by a vessel from a place outside India up to the Customs station of clearance in India by a person located in non-taxable territory to a person located in non-taxable territory. Importer as defined under sec. 2(26) of the Customs Act, 1962 is to be deemed as Service Recipient. Liability of service receiver – 100% Enjoyment of Copy Rights Services provided by Author or music composer, photographer, artist, etc. by way of transfer or permitting the

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provided by mutual fund agent or distributor to a mutual fund or asset management company. • To be provided by a selling or marketing agent of lottery tickets to a lottery distributor or selling agent. • Renting of motor vehicle except through e-commerce operators. • Supply of manpower or security service. • Work Contract Service G. Issues Is the reverse charge mechanism applicable only to services? – No, reverse charge applies to supplies of both goods and services. Composition scheme not applicable for tax payable under RCM: It is important to note that for any tax payable under reverse charge mechanism, the option of payment under composition scheme will not be available as per the provision of section 10(1) of CGST Act, 2017. In other words, a taxable person opting for composition scheme will be required to pay tax on supplies taxable under RCM at regular rates and not the composition rate. • Time of Supply of Goods under Reverse Charge – Where tax is paya

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find buyers. Who will purchase goods from them? (Only limit is 5000/- per day.) – Reply By Maninder Singh – The Reply = Sir, As per section 5(4) of IGST Act, if a registered person purchase any goods or service exceeding ₹ 5000/- per day from any or all unregistered supplier, he is liable to pay IGST on reverse charge basis. However when we have a look on the section 24 of CGST Act, it says that person making any inter-state taxable supply, will have to take registration mandatory, it means that unregistered person can not make inter-state supply, So here how the question of reverse charge arise. Please correct me if I am taking a wrong view and clarify in case of goods or service or both. I have one more query regarding the reverse charge on expenses incurred by employees for official purpose, like conveyance, food and beverages, telephone or internet where they receive services from unregistered person. Whether company is liable to pay GST on reverse charge when it makes reimb

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gistered purchase is ₹ 11500/- in a day. Is it liable to pay RCM.I seen some youtube video , they are telling that ₹ 5000/- per day from a single person not in gross or in total. further I purchase ₹ 6000/- then may it be taxable in whole under RCM. – Reply By Rohit Bhura – The Reply = Sir, under point D you have written Taxable territory – Whole of India except Jammu & KashmirBut as GST is applicable to J & K also so the taxable territory should be whole of india – Reply By MANOHARAN ARUMUGAM – The Reply = Sir,For inter-state services the service provider has charges us IGST @ 18% But in the invoice, they have shown this as CGST & SGST. The service provider says that this is per their system. My query is if the recipient unit can avail input tax credit? Pl. clear my doubt.A.Manoharan – Reply By KASTURI SETHI – The Reply = Under RCM, recepient can take credit only after making payment in cash. – Reply By Ganeshan Kalyani – The Reply = Nice article. – Reply

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= Dear Sir,Thanks for giving clarifications on the query. Request you to please share your opinion on reverse charge in case of interstate supply where registration is mandatory for a person making interstate supply. – Reply By swaminathan venkataraman – The Reply = IMPROMPTUThe term 'reverse charge', as explained, calls for an elucidation. To be precise, the point not made quite clear is this: Whether the recipient acts only as a collecting agent of the levy; that is, the burden has to be picked up and borne by the supplier, in all situations? To Dilate: • Reverse charge is ONLY A MODE OF COLLECTION of CGST/SGST or IGST on Supplies of goods and services where the service receiver (MAY BE WHOLLY OR PARTIALLY) WILL BE LIABLE to pay CGST/SGST or IGST to Government. The term reverse charge , as thus explained, in one s view, is lacking in clarity.According to the scheme of things, as read and understood: Any levy of service tax, be it on supply of services (or of goods), if

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ublic domain , for useful guidance. – Reply By swaminathan venkataraman – The Reply = WRT – Taxable territory -Whole of India except Jammu & Kashmir There is another aspect which has been brought out and shared on Facebook / Linked in, intended for deliberation by eminent experts. That is on the point of doubt in one s mind, -whether it is amply clear that the service tax jurisdiction is limited to or extends beyond the territorial waters of India (i.e. 12 nautical miles ) . For comparison, need to keep in focus the areas of ongoing controversy , and issues still kept alive, in the matter of income-tax jurisdiction. – Reply By Pratik Jain – The Reply = Dear Sir,In Case of reimbursement by employer to employee for telephone exp, food, etc, we understand RCM is not applicable, so how would be book these expenses in our balance sheet, under employee exp or under individual heads like telephone exp, food exp, etc. – Reply By Pratik Jain – The Reply = Also please help, what entries we h

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Singh ji very nice article.Sir I have query i.e. does advance payment to FOREIGN VENDOR for import of goods, liable to IGST under RCM as the foreign vendor is unregistered dealer as per GST Act ?Further if we pay IGST on RCM basis on payment of advance, again the same will be taxed at the time of import when the BILL OF ENTRY will be filed, which implies double taxation.Sir please clarify this issue.Thanks in advance. – Reply By Gautam Kumar Bera – The Reply = ALL UNREGISTERED DEALER:-Suppose if I purchased fro July-20171. Tea Expenses Rs.10000/-2. Printing & Stationery Rs.10000/-3. office expenses Rs. 10000/-I have incurred ₹ 30,000/- all unregistered Purchases and we need to pay GST under RCM and Bill may be raised all together in a single bill at the end of July-2017. a) In case of billing we need to mention separate HSN Codes for the above items separately or it may be included in a single HSN Code. b) In case of separate HSN Code is there any exact HSN Codes for the abov

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red person in Delhi itself. In the said transaction, he himself arranges the transporter and the risk & rewards of the goods are transferred to recipient on the factory gate of person in delhi. What shall be the place of Supply??? – If i consider place of Supply at Delhi only- The same would amount to Intrastate Transaction, thus out of IGST. Will I be Liable to take registration as casual dealer?? – If The Place of Supply is U.P.- Who will discharge IGST?? Will the Supplier be liable for Compulsory registration? Please Guide. Thanks & Regards, Abhishek – Reply By Raman Singla – The Reply = What is the maximum cash purchase limit from unregistered person in a single day under RCM ???? – Reply By abhishek ghai – The Reply = Sir,Waiting for your response. kindly also clarify the manner of billing to be done in case of Purchases from Unregistered persons- Whether Self billing (Treating as outward Supply) or Inward Purchase billing to be done??Thanks & regards,CA Abhishek – Rep

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GST – States – MGST-1017/C.R.111/Taxation-1 – Dated:- 14-7-2017 – FINANCE DEPARTMENT Madam Cama Road, Hutatma Rajguru Chowk, Mantralaya, Mumbai 400 032, dated the 14th July, 2017. Corrigendum – Notification No. MGST-1017/CR. 111/Taxation-1, dated the 11th July 2017 MAHARASHTRA GOODS AND SERVICES TAX ACT, 2017. No. MGST-1017/C.R. 111/Taxation-1.-In the Government notification of the Finance Department No. MGST-1017/CR. 111/Taxation-1, dated the 11th July 2017, published in the Maharashtra Govern

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GST – States – KA.NI.-2-941/XI-9(42)/17 – Dated:- 14-7-2017 – Uttar Pradesh Shasan Sansthagat Vitta, Kar Evam Nibandhan Anubhag -2 NOTIFICATION No.KA.NI.-2- /XI-9(42)/17-U.P.GST Rules-2017-Order-( )-2017 Lucknow : Dated : 14th July ,2017 In exercise of the powers conferred by section 164 of the Uttar Pradesh Goods and Services Tax Act, 2017 (U.P. Act no. 1 of 2017), the Governor is pleased to make the following rules further to amend the Uttar Pradesh Goods and Services Tax Rules, 2017, namely:- THE UTTAR PRADESH GOODS AND SERVICES TAX (SECOND AMENDMENT) RULES, 2017 Short title and Commencement 1. (1) These rules may be called the Uttar Pradesh Goods and Services Tax (Second Amendment) Rules, 2017. (2) They shall be deemed to have come into force with effect from the 1st day of July, 2017. Amendment of rule 44 2. In the Uttar Pradesh Goods and Services Tax Rules, 2017, hereinafter referred to as the said rules, in rule 44,- (a) in sub-rule (2), for the words integrated tax and central

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specified under sub-section (1) of section 50 within a period of – (a) fifteen days after the expiry of three months from the date of issue of the invoice for export, if the goods are not exported out of India; or (b) fifteen days after the expiry of one year, or such further period as may be allowed by the Commissioner, from the date of issue of the invoice for export, if the payment of such services is not received by the exporter in convertible foreign exchange. (2) The details of the export invoices contained in FORM GSTR-1 furnished on the common portal shall be electronically transmitted to the system designated by Customs and a confirmation that the goods covered by the said invoices have been exported out of India shall be electronically transmitted to the common portal from the said system. (3) Where the goods are not exported within the time specified in sub-rule (1) and the registered person fails to pay the amount mentioned in the said sub-rule, the export as allowed under

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6. In the said rules, in rule 119, in the heading, for the word agent , the word job-worker shall be substituted; Insertion of Chapters XVII to XIX 7. In the said rules, after chapter XVI, the following Chapters shall be inserted, namely:- Chapter – XVII Inspection, Search and Seizure 139. Inspection, search and seizure.- (1) Where the proper officer not below the rank of a Joint Commissioner has reasons to believe that a place of business or any other place is to be visited for the purposes of inspection or search or, as the case may be, seizure in accordance with the provisions of section 67, he shall issue an authorisation in FORM GST INS-01 authorising any other officer subordinate to him to conduct the inspection or search or, as the case may be, seizure of goods, documents, books or things liable to confiscation. (2) Where any goods, documents, books or things are liable for seizure under sub-section (2) of section 67, the proper officer or an authorised officer shall make an ord

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ments or books or things are seized. 140. Bond and security for release of seized goods.- (1) The seized goods may be released on a provisional basis upon execution of a bond for the value of the goods in FORM GST INS-04 and furnishing of a security in the form of a bank guarantee equivalent to the amount of applicable tax, interest and penalty payable. Explanation.- For the purposes of the rules under the provisions of this Chapter, the applicable tax shall include central tax and State tax or central tax and the Union territory tax, as the case may be and the cess, if any, payable under the Goods and Services Tax (Compensation to States) Act, 2017 (Act no. 15 of 2017). (2) In case the person to whom the goods were released provisionally fails to produce the goods at the appointed date and place indicated by the proper officer, the security shall be encashed and adjusted against the tax, interest and penalty and fine, if any, payable in respect of such goods. 141. Procedure in respect

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ction (2) of section 76, a summary thereof electronically in FORM GST DRC-01, or (b) statement under sub-section (3) of section 73 or sub-section (3) of section 74, a summary thereof electronically in FORM GST DRC-02, specifying therein the details of the amount payable. (2) Where, before the service of notice or statement, the person chargeable with tax makes payment of the tax and interest in accordance with the provisions of sub-section (5) of section 73 or, as the case may be, tax, interest and penalty in accordance with the provisions of sub-section (5) of section 74, he shall inform the proper officer of such payment in FORM GST DRC-03 and the proper officer shall issue an acknowledgement, accepting the payment made by the said person in FORM GST DRC-04. (3) Where the person chargeable with tax makes payment of tax and interest under sub-section (8) of section 73 or, as the case may be, tax, interest and penalty under sub-section (8) of section 74 within thirty days of the servic

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eafter referred to in this rule as the defaulter ) to the Government under any of the provisions of the Act or the rules made thereunder is not paid, the proper officer may require, in FORM GST DRC-09, a specified officer to deduct the amount from any money owing to such defaulter in accordance with the provisions of clause (a) of sub-section (1) of section 79. Explanation.- For the purposes of this rule, specified officer shall mean any officer of the Central Government or a State Government or the Government of a Union territory or a local authority, or of a Board or Corporation or a company owned or controlled, wholly or partly, by the Central Government or a State Government or the Government of a Union territory or a local authority. 144. Recovery by sale of goods under the control of proper officer.- (1) Where any amount due from a defaulter is to be recovered by selling goods belonging to such person in accordance with the provisions of clause (b) of sub-section (1) of section 7

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n the auction, which may be returned to the unsuccessful bidders, forfeited in case the successful bidder fails to make the payment of the full amount, as the case may be. (5) The proper officer shall issue a notice to the successful bidder in FORM GST DRC-11 requiring him to make the payment within a period of fifteen days from the date of auction. On payment of the full bid amount, the proper officer shall transfer the possession of the said goods to the successful bidder and issue a certificate in FORM GST DRC-12. (6) Where the defaulter pays the amount under recovery, including any expenses incurred on the process of recovery, before the issue of the notice under sub-rule (2), the proper officer shall cancel the process of auction and release the goods. (7) The proper officer shall cancel the process and proceed for re-auction where no bid is received or the auction is considered to be non-competitive due to lack of adequate participation or due to low bids. 145. Recovery from a th

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amount recoverable. 147. Recovery by sale of movable or immovable property.- (1) The proper officer shall prepare a list of movable and immovable property belonging to the defaulter, estimate their value as per the prevalent market price and issue an order of attachment or distraint and a notice for sale in FORM GST DRC- 16 prohibiting any transaction with regard to such movable and immovable property as may be required for the recovery of the amount due: Provided that the attachment of any property in a debt not secured by a negotiable instrument, a share in a corporation, or other movable property not in the possession of the defaulter except for property deposited in, or in the custody of any Court, shall be attached in the manner provided in rule 151. (2) The proper officer shall send a copy of the order of attachment or distraint to the concerned Revenue Authority or Transport Authority or any such Authority to place encumbrance on the said movable or immovable property, which sh

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ng it by public auction, sell such instrument or a share through a broker and the said broker shall deposit to the Government so much of the proceeds of such sale, reduced by his commission, as may be required for the discharge of the amount under recovery and pay the amount remaining, if any, to the owner of such instrument or a share. (6) The proper officer may specify the amount of pre-bid deposit to be furnished in the manner specified by such officer, to make the bidders eligible to participate in the auction, which may be returned to the unsuccessful bidders or, forfeited in case the successful bidder fails to make the payment of the full amount, as the case may be. (7) The last day for the submission of the bid or the date of the auction shall not be earlier than fifteen days from the date of issue of the notice referred to in sub-rule (4): Provided that where the goods are of perishable or hazardous nature or where the expenses of keeping them in custody are likely to exceed th

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or in trust for any other person, or partly on his own account and partly on account of some other person, the proper officer shall make an order releasing the property, wholly or to such extent as he thinks fit, from attachment or distraint. (11) Where the proper officer is satisfied that the property was, on the said date, in the possession of the defaulter as his own property and not on account of any other person, or was in the possession of some other person in trust for him, or in the occupancy of a tenant or other person paying rent to him, the proper officer shall reject the claim and proceed with the process of sale through auction. (12) The proper officer shall issue a notice to the successful bidder in FORM GST DRC-11 requiring him to make the payment within a period of fifteen days from the date of such notice and after the said payment is made, he shall issue a certificate in FORM GST DRC-12 specifying the details of the property, date of transfer, the details of the bidd

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ds. 148. Prohibition against bidding or purchase by officer.- No officer or other person having any duty to perform in connection with any sale under the provisions of this Chapter shall, either directly or indirectly, bid for, acquire or attempt to acquire any interest in the property sold. 149. Prohibition against sale on holidays.- No sale under the rules under the provision of this Chapter shall take place on a Sunday or other general holidays recognized by the Government or on any day which has been notified by the Government to be a holiday for the area in which the sale is to take place. 150. Assistance by police.- The proper officer may seek such assistance from the officer-in-charge of the jurisdictional police station as may be necessary in the discharge of his duties and the said officer-in-charge shall depute sufficient number of police officers for providing such assistance. 151. Attachment of debts and shares, etc.- (1) A debt not secured by a negotiable instrument, a sha

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d under clause (a) of sub-rule (1), may pay the amount of his debt to the proper officer, and such payment shall be deemed as paid to the defaulter. 152. Attachment of property in custody of courts or Public Officer.- Where the property to be attached is in the custody of any court or Public Officer, the proper officer shall send the order of attachment to such court or officer, requesting that such property, and any interest or dividend becoming payable thereon, may be held till the recovery of the amount payable. 153. Attachment of interest in partnership.- (1) Where the property to be attached consists of an interest of the defaulter, being a partner, in the partnership property, the proper officer may make an order charging the share of such partner in the partnership property and profits with payment of the amount due under the certificate, and may, by the same or subsequent order, appoint a receiver of the share of such partner in the profits, whether already declared or accruing

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de thereunder; and (d) any balance, be paid to the defaulter. 155. Recovery through land revenue authority.- Where an amount is to be recovered in accordance with the provisions of clause (e) of sub-section (1) of section 79, the proper officer shall send a certificate to the Collector or Deputy Commissioner of the district or any other officer authorised in this behalf in FORM GST DRC- 18 to recover from the person concerned, the amount specified in the certificate as if it were an arrear of land revenue. 156. Recovery through court.- Where an amount is to be recovered as if it were a fine imposed under the Code of Criminal Procedure, 1973, the proper officer shall make an application before the appropriate Magistrate in accordance with the provisions of clause (f) of sub-section (1) of section 79 in FORM GST DRC- 19 to recover from the person concerned, the amount specified thereunder as if it were a fine imposed by him. 157. Recovery from surety.- Where any person has become surety

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ble person has already defaulted on the payment of any amount under the Act or the Integrated Goods and Services Tax Act, 2017 or the Union Territory Goods and Services Tax Act, 2017 or any of the State Goods and Services Tax Act, 2017, for which the recovery process is on; (b) the taxable person has not been allowed to make payment in instalments in the preceding financial year under the Act or the Integrated Goods and Services Tax Act, 2017 or the Union Territory Goods and Services Tax Act, 2017 or any of the State Goods and Services Tax Act, 2017; (c) the amount for which instalment facility is sought is less than twenty-five thousand rupees. 159. Provisional attachment of property.- (1) Where the Commissioner decides to attach any property, including bank account in accordance with the provisions of section 83, he shall pass an order in FORM GST DRC-22 to that effect mentioning therein, the details of property which is attached. (2) The Commissioner shall send a copy of the order o

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f the attachment under sub-rule (1), file an objection to the effect that the property attached was or is not liable to attachment, and the Commissioner may, after affording an opportunity of being heard to the person filing the objection, release the said property by an order in FORM GST DRC- 23. (6) The Commissioner may, upon being satisfied that the property was, or is no longer liable for attachment, release such property by issuing an order in FORM GST DRC- 23. 160. Recovery from company in liquidation.- Where the company is under liquidation as specified in section 88, the Commissioner shall notify the liquidator for the recovery of any amount representing tax, interest, penalty or any other amount due under the Act in FORM GST DRC -24. 161. Continuation of certain recovery proceedings.- The order for the reduction or enhancement of any demand under section 84 shall be issued in FORM GST DRC- 25. Chapter – XIX Offences and Penalties 162. Procedure for compounding of offences.- (1

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opportunity of being heard to the applicant and recording the grounds of such rejection. (5) The application shall not be allowed unless the tax, interest and penalty liable to be paid have been paid in the case for which the application has been made. (6) The applicant shall, within a period of thirty days from the date of the receipt of the order under sub-rule (3), pay the compounding amount as ordered by the Commissioner and shall furnish the proof of such payment to him. (7) In case the applicant fails to pay the compounding amount within the time specified in sub-rule (6), the order made under sub-rule (3) shall be vitiated and be void. (8) Immunity granted to a person under sub-rule (3) may, at any time, be withdrawn by the Commissioner, if he is satisfied that such person had, in the course of the compounding proceedings, concealed any material particulars or had given false evidence. Thereupon such person may be tried for the offence with respect to which immunity was granted

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Customs – 19 /2017 – Dated:- 14-7-2017 – OFFICE OF THE COMMISSIONER OF CUSTOMS NEW CUSTOMS HOUSE, PANAMBUR, MANGALURU – 575 010 Tel: 0824-2408164 Fax: 0824-2407100 E-mail:commr-cusmnglr@nic.in C. No. S-26/04/2016 Cus Tech Date: 14.07.2017 PUBLIC NOTICE NO. 19 /2017 Subject : Duty Drawback for supplies made by DTA units to Special Economic Zones in the GST scenario Attention of the Importers, Exporters, Customs Brokers, Steamer Agents, Liners and the members of Trade is invited to the Board s Circular No.24/2017- Customs dated 30.06.2017, detailing Board Circular No.43/2007-Customs dated 5.12.2007 and Circular No. 39/2010-Customs dated 15.10.2010 which inter alia prescribe that in respect of drawback claims by a DTA supplier for supplies ma

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the fixation of Brand rate in case of supplies from DTA to SEZ Unit or developer, if required, shall also be done by the office of said Principal Commissioner/ Commissioner. This shall apply to all fresh applications/ claims filed from 1.7.2017 onwards. 3. The applications/ claims which have already been filed up to 30.6.2017 and are pending with jurisdictional Central Excise formations shall be transferred to the Principal Commissioner/ Commissioner of Customs/ Customs (Preventive) having jurisdiction over the DTA supplier. For smooth transition of above cited work to Customs formations, it is essential that transfer of documents is undertaken carefully and in close coordination with Customs authorities concerned without disruption, delay

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Goods and Services Tax – Started By: – Pankaj P – Dated:- 13-7-2017 Last Replied Date:- 9-8-2017 – Respected Members, Even after lot of research I am unable to find answer to following questions : – Query 1: – I'm a GST registered trader based in Delhi and have to sell goods to a buyer based in Kolkata. I will be invoicing multiple products with tax rates as 18% and 28%; along with these products I have to charge freight (Delhi to Kolkata) in the invoice. – Now, question is what would be the rate of GST on this Freight component that I would charge from buyer and what would be the HSN Code for that? (P.s. Would be taking services of Good Transport Agency (GTA) for goods transport.) Query 2: – Earlier I heard that requirement of Way Bill / Road permits have been done away with. But, today I read following circular of Government of West Bengal Directorate of Commercial Taxes – Trade circular no. 06/2017 Dated: 30.06.2017 Subject: E-waybill under WBGST Ordinance, 2017. It mentions th

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freight that you will be charging on customer thru invoice would attract GST rate of the material that will be supplied. You will have to pay GST on freight service availed from GTA. Reply to query 2 :- The provision of e-way bill under GST is not made effective from the appointed date. In view of the same, some states have abolished way bill provision prevailing under VAT law. But some states have still continued to follow the way bill provision as existing under VAT provision. Reply to query 3 :- I will reply on this soon. Thanks. – Reply By Pankaj P – The Reply = Thanks a lot Ganeshan Sir for your Prompt reply. However, I have few doubts.Reply 1 : – In my invoice I am billing two products having different GST rates (18% & 28%); than freight service will have which GST rate – 18% or 28%? How about those products which have 0% GST; would there be no GST on freight on these items?& GST on freight service by GTA has to be by RCM?Reply 2 :- Noted, ThanksReply 3 :- Ok SirThanks a

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ion. – Reply By R.S. Mangal – The Reply = If no separate freight is shown product wise then GST on freight will be on highest rate of GST applicable on product supplied, which in your case will be 28%. – Reply By KASTURI SETHI – The Reply = Yes.Sir, Separate freight is to be mentioned on the invoice itself. I think separate invoice for freight alone is not requirement of GST law. Regards – Reply By THYAGARAJAN KALYANASUNDARAM – The Reply = Dear sir, Reagarding query no. 3, please go through sec 10(1)(b)of IGST Act. – Reply By MUKUND THAKKAR – The Reply = Query 1: – I'm a GST registered trader based in Delhi and have to sell goods to a buyer based in Kolkata. I will be invoicing multiple products with tax rates as 18% and 28%; along with these products I have to charge freight (Delhi to Kolkata) in the invoice. – Now, question is what would be the rate of GST on this Freight component that I would charge from buyer and what would be the HSN Code for that?. if your bill is common for

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ds to Party C in Kolkata? Also, what would be the implications regarding Place of Supply and earlier E1 / E2 forms were required what about it now? It doesn't make sense that we first bring the goods to Delhi from Maharashtra and then sent it to Kolkata; as this would lead to freight charges. So, if possible we would prefer Bill to – Ship to transaction. Bill to Ship to Transaction Transaction also intact in GST.. only keep in the mind of basic idea of Recipient and Receiver Recipient will be able to take Input tax credit and receiver only goods. you need to raised Separate invoice in favour of your customer. for keeping live of ITC chain. NO E-1 , E-2 transaction more in GST regime. – Reply By Pankaj P – The Reply = Thanks to all the experts in clarifying my doubts on Query 1 & Query 2. However, I request more clarity on Query 3 as Im unable to comprehend Sec 10(1)(b)of IGST Act regarding 'Bill to Shop' to scenario in my case. One more point – Don't want to disclos

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Goods and Services Tax – Started By: – Narendra Soni – Dated:- 13-7-2017 Last Replied Date:- 13-8-2017 – Sir, In our factory, contractors are engaged to construct office building.1. If we purchase cement & iron from market and provide him for construction+he added bricks and tiles+moram+gitty etc and employed labour and construct the building.2.If all the Material is supplied by us from market, he employed only labour.3.We pay also to plumber,electrician,carpenter engaged in the constructio

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Goods and Services Tax – Started By: – SURYAKANT MITHBAVKAR – Dated:- 13-7-2017 Last Replied Date:- 14-7-2017 – We are manufacturing of Pharmaceutical Machine having two unit in same state under one GST Number.Now we have to transfer some Work in Process material to other unit for further process and also deliver to customer from there only.Is there any document to prepare under GST Act. – Reply By Ganeshan Kalyani – The Reply = The stock transfer within the State between units having same GSTI

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Goods and Services Tax – Started By: – Davinder Singh – Dated:- 13-7-2017 Last Replied Date:- 16-7-2017 – 2. Input of GST paid for Expenses debited to Profit and loss account. The detail of Expenses is as under :-kindly confirm the Eligible expenses for Input in GST. Consumable Exp. Freight Inward Diesel Import Expenses Labour Expenses Job Work Expenses Uniform Exp. Labour& Welfare Expense Labour Welfare Fund Audit Fee Building Repairs Charity & Donation Computer Repair Consultancy Exp

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Goods and Services Tax – Started By: – Abhishek Jain – Dated:- 13-7-2017 Last Replied Date:- 14-7-2017 – Dear sir,Our business model in brief is as follows:1. We buy cloth and other material. Students come to us and give measurement and accordingly we stitch uniform for them (Shirt, trouser etc.). For doing the stitching work we have tailors on roll and we also give it to outsiders on job work basis. All finished items are sold at a price below ₹ 1000 per item except blazers which costs m

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Goods and Services Tax – GST – Dated:- 13-7-2017 – No GST on Annual subscription/fees charged as lodging/boarding charges by educational institutions from its students for hostel accommodation; Services provided by an educational institution to students, faculty and staff are fully exempt from GST. There are some reports that GST@18% will be levied on annual subscription/fees charged for lodging in hostels. This is not true. There is no change in tax liability relating to education and related services in the GST era, except reduction in tax rate on certain items of education. It may be mentioned that services provided by an educational institution to students, faculty and staff are fully exempt. Educational institution has been defined as

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Goods and Services Tax – GST – Dated:- 13-7-2017 – There are some press reports that services provided by a Housing Society [Resident Welfare Association (RWA)] will become expensive under GST. These are completely unsubstantiated. It may be mentioned that supply of service by RWA (unincorporated body or a registered non- profit entity) to its own members by way of reimbursement of charges or share of contribution up to an amount of five thousand rupees per month per member for providing services and goods for the common use of its members in a housing society or a residential complex are exempt from GST. Further, if the aggregate turnover of such RWA is upto ₹ 20 Lakh in a financial year, then such supplies would be exempted from GS

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Goods and Services Tax – Started By: – Vivek anandhan – Dated:- 13-7-2017 Last Replied Date:- 13-7-2017 – Dear Experts We are manufacturing of capital equipment, Our supply of product terms covers 1 year warranty. Warranty cost included in the selling cost. Now my question is whether we can supply spares to the main capital equipment without payment of GST under warranty.RegardsVivekanandhan – Reply By KASTURI SETHI – The Reply = It would be treated as mixed supply and not composite supply. Bot

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Goods and Services Tax – Started By: – venkat narayan – Dated:- 13-7-2017 Last Replied Date:- 31-8-2017 – Dear SirFor those sellers who are registered to sell thru market place like Flipkart, how will the TCS as deducted by them will be offset. Reason being, we are selling & collecting GST / IGST using different HSN codes however when TDS deducted it will be under different SAC codePls adviseRegs – Reply By vijay kumar – The Reply = Section 52 is yet to be notified. In any case, once it is

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GST FOR CIVIL CONTRACTOR – Goods and Services Tax – Started By: – Chandresh Sharma – Dated:- 13-7-2017 Last Replied Date:- 30-12-1899 – DEAR EXPERTS,I AM A CIVIL CONTRACTOR & HAVING ROAD PROJECTS

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Income Tax – Started By: – srikanth reddy – Dated:- 13-7-2017 Last Replied Date:- 22-7-2017 – Hi Team,Thanks for the given opportunity to write our doubts here..Could you please confirm us whether the TDS tax should be deducted on GST indirect taxes (CGST/SGST/IGST) or not…?Regards,Srikanthreddy – Reply By SHIVKUMAR SHARMA – The Reply = Please refer Issue ID = 112310 . – Reply By srikanth reddy – The Reply = Hi,Thanks for the reply,For the mentioned issue id, Both TDS and TCS are postponed under GST regime.Which means is TDS should be deducted on GST taxes..?Please clarify on the same, Since most of the business and software are under confusion whether we can deduct or not..?Regards,Srikanthreddy – Reply By KASTURI SETHI – The Reply = St

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Goods and Services Tax – Started By: – kshitija narawane – Dated:- 13-7-2017 Last Replied Date:- 15-7-2017 – Hi allmy dealer is dealing with different kirana goods , retailer basically at the time of registration under GST , how to mentioned all the commodity – Reply By KASTURI SETHI – The Reply = Mention major commodities only and if convenient opt for Composition Scheme for turnover up to ₹ 75 Lakhs per year and pay GST @ 1 % from your pocket. Not to recover amount of 1 % from customers

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Goods and Services Tax – Started By: – Ranjit Abraham – Dated:- 13-7-2017 Last Replied Date:- 13-7-2017 – I have a sole proprietorship firm registered under Central Board of Excise and Customs i.e, service tax registration.My nature of business is Website Designing. I have a turnover of Rs. Five lakhs p.a.Recently its migrated to GST portal and GST registration number was generated.Earlier I dint charge any tax on invoice because it was exempted (below 10 lakhs).Q.1: Now under GST do I have to charge tax?Q.2: If yes, can I cancel my GST and continue with old billing?Q.3: I dont see any option to cancel GST from portal. How to do that?Q.4: After cancellation of GST, can I provide service under old registration and continue my business as be

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e I have called GST Helpdesk: 0120-4888999 They told me there is no provision for cancellation now. There are no notifications from government towards cancellation. I can only preview the cancellation form i.e, GST REG – 16 but cannot submit it. Most of my business is inside state Karnataka. So I will continue charging additional GST tax as per above from my clients. – Reply By KASTURI SETHI – The Reply = Still Department's site is not perfect, otherwise there should be no problem in cancellation. Or we may say the department itself does not want to cancel registration in intial stages. – Reply By MARIAPPAN GOVINDARAJAN – The Reply = If you are within the threshold limit you need not charge tax. Cancellation may be done at the time of a

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Goods and Services Tax – GST – By: – GOKARNESAN.S SUBRAMANIAN – Dated:- 13-7-2017 Last Replied Date:- 18-7-2017 – An injustice made to Practicing Advocates in GST Act – They cannot become a Member of the Appellate Tribunal directly from the Bar. Current provisions on Recruitment of Members to Hon ble CESTAT AND The provisions in the Central Goods and Service Tax Act (CGST Act) for recruitment of Members of Appellate Tribunal Provisions under the current CESTAT members (Recruitment and Conditions of Service) Rules, 1987 Provisions under Proposed CGST Act. RULE 3. Qualifications for recruitment. – (1) A person shall not be qualified for appointment as a judicial member unless- (i) he has for at least ten years held a judicial office in the territory of India; or (ii) he has been a member of the Indian Legal Service and has held a post in Grade I of that service or any equivalent or higher post for at least three years; or (iii) he has been an advocate for at least ten years. Explanation

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least three years. (3) No person shall be qualified for appointment as a member of the Tribunal unless he has attained the age of 45 years. President and Members of Appellate Tribunal, their qualification, appointment, conditions of service, etc. CGST ACT – SEC 110. (1) A person shall not be qualified for appointment as- (a) the President, unless he has been a Judge of the Supreme Court or is or has been the Chief Justice of a High Court, or is or has been a Judge of a High Court for a period not less than five years; (b) a Judicial Member, unless he- (i) has been a Judge of the High Court; or (ii) is or has been a District Judge qualified to be appointed as a Judge of a High Court; or (iii) is or has been a Member of Indian Legal Service and has held a post not less than Additional Secretary for three years; (c) a Technical Member (Centre) unless he is or has been a member of Indian Revenue (Customs and Central Excise) Service, Group A, and has completed at least fifteen years of serv

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ision of the Government to omit the Advocates to become Member of Tribunals. Practicing Advocates are qualified for recruitment of Judges to High Court and Supreme Court also. In terms of Article 124(3) of the Constitution of India, A person shall not be qualified for appointment of as a Judge of the Supreme Court of India unless he is a Citizen of India and – Has been for at-least five years a Judge of a High Court or of Two or more such Courts in succession; or Has been for at least ten years an advocate of a High Court of two or more such Courts in succession. ……. When an Advocate having more than 10 years of practice in High Court is qualified for an appointment of Judge in High Court and Supreme Court, making them not qualified to become a Member of the New Tribunal to be constituted under the new CGST Act., is not a correct move. In as much as the High Courts and Supreme Court are superior than the Tribunals, the Central Government should have included Advocates hav

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ract money and they do. But atleast they should fight for the victim who see advocate as God and ask for justice .Disclaimer: this is based on experience of one of my dear friend with the advocate. I totally agree there are few people in very profession which make other person to thing that entire bunch of professionals are same. But there is weightage in the point put forth. – Reply By GOKARNESAN.S SUBRAMANIAN – The Reply = Mr. Ganeshan KalyaniWith due respect to you and your participation in TMI discussions, I wish to inform the following on your comments and postings against my article.1) First of all this is the forum only to discuss the issues relating to indirect taxes / GST provisions for the benefit of subscribers and readers. This is not the forum to discuss or to post criticism against professional in general. I strongly condemn your postings on Advocates professionals.2) Majority of the Advocates are rendering services to clients with a view to get justice to them and fight

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Goods and Services Tax – Started By: – Narendra Soni – Dated:- 13-7-2017 Last Replied Date:- 14-7-2017 – Dear experts.We need to issue tax invoice on purchase of goods from unregistered person.kindly suggest who will be supplier and buyer/recipient in such Invoice.urgent please. – Reply By KASTURI SETHI – The Reply = Service receiver will act /work as if he were supplier for the purpose of discharging GST liability. Otherwise status of supplier (seller) and receiver (buyer ) remains the same.Th

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2017 (7) TMI 529 – GUJARAT HIGH COURT – 2017 (356) E.L.T. 199 (Guj.) , 2017 (7) G. S. T. L. 431 (Guj.) – Levy of penalty u/s 28 of the FA, 1994 at a reduced rate of 25% – authority of the Commissioner or the Tribunal to reduce the penalty – Held that: – reliance placed in the case of Commissioner of Central Excise vs. GP Prestress Concrete Works [2012 (8) TMI 933 – GUJARAT HIGH COURT], where it was held that the assessee is required to be given an option by the adjudicating authority whether he is willing to pay the duty with interest and 25% penalty within 30 days from the date of adjudication. Whenever such option is not given, the facility of paying reduced penalty by fulfilling the condition of deposition of the same with interest with

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only if the duty determined under Section 73(2), interest payable thereon under Section 75 and penalty at 25% of the duty determined under Section 73(2) has been paid within thirty days from the date of communication of the order of the Central Excise Officer determining duty payable under Section 73(2) of the Finance Act, 1994? 2. The issue pertains to levy of penalty under Section 28 of the Finance Act, 1994 at a reduced rate of 25%. According to the department, the penalty is compulsory and the Commissioner or the Tribunal had no authority to reduce the same. 3. We may, however, notice that in case of Commissioner of Central Excise vs. GP Prestress Concrete Works reported in 2015 (323) ELT 709 and in the case of Commissioner of C. Ex, A

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of availing reduced penalty on depositing amount with interest within thirty days. When the assessee approached the Commissioner, he granted such option of paying reduced penalty, if deposited within thirty days. He had provided as under: (b) Under para (iv) following shall be added towards the end However M/s. Metro Security Services shall have option to pay penalty at reduced rate of 25% of RS.47,85,269/- provided that reduced penalty along with tax and interest is paid within 30 days of receipt of this Order in Appeal. 5. The department is aggrieved by this order and therefore approached the Tribunal. The Tribunal relying on the decisions in the case of GP Prestress Concrete Works (supra) and Ratnamani Metals and Tubes Ltd. (supra) dismi

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GST – States – 06/2017-18 – Dated:- 13-7-2017 – Government of Karnataka (Department of Commercial Taxes) No. KSA/GST/CR-05 /2017-18 Office of the Commissioner of Commercial Taxes Vanijya Terige Karyalaya, Gandhinagr, Bengaluru-560009, Dated: 13-07-2017 COMMISSIONER OF COMMERCIAL TAXES CIRCULAR NO. 06/2017-18 Subject: Submission of Bond/Letter of Undertaking by the Exporter in respect of Exports without payment of Integrated Tax under the IGST Act. 1. The Karnataka Goods and Services Tax Act, 2017, (hereinafter referred to as the "KGST Act"), the Central Goods and Services Tax Act, 2017, (hereinafter referred to as the "CGST Act"), and Integrated Goods and Services Tax Act, 2017, (hereinafter referred to as the "IGST Act"), have come in to force with effect from 1st July 2017. 2. Section 16(3) of the IGST Act provides that a registered person making zero rated supply shall be eligible to claim refund under either of the following options,- (a) he may suppl

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RFD-Il to the jurisdictional Commissioner, binding himself to pay the tax due along with the interest specified under sub-section (1) of section 50 within a period of,- (a) fifteen days after the expiry of three months from the date of issue of the invoice for export, if the goods are not exported out of India; or (b) fifteen days after the expiry of one year, or such further period as may be allowed by the Commissioner, from the date of issue of the invoice for export, if the payment of such services is not received by the exporter in convertible foreign exchange. 5. As per the provisions of sub-rule (5) of aforesaid rules the State Government is empowered to issue notification and provide certain conditions and safeguards under which an exporter may furnish Letter of Undertaking in place of a bond. 6. In this background queries have been received from the Trade and Associations stating the difficulties faced with regard to the procedure prescribed in respect of export of goods and se

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truction, to exporter, the Bond/ LUT in all cases be accepted by Central Tax officer till such time the said administrative mechanism is implemented Central Tax officers are directed to take every step to facilitate the exporters. 8. In this backdrop, in order to mitigate the issues involved in relation to fulfill the mandate of section 16 of the IGST Act 2017 and rule 96A of the KGST Rules, 2017 it is hereby informed to the exporters in the State that the Bond or the letter of undertaking in place of Bond in all the cases (irrespective of the fact that the provisional ID for the GST is issued by the Commercial Tax Department), will be accepted by the jurisdictional Assistant Commissioner of Commercial Taxes, Local Goods and Services Tax Office/Commercial Tax Officer of Local Goods and Service Tax office in the absence of ACCT, and Commercial Tax Officer, Sub GST Office till the administrative mechanism for assignment of Tax payers to respective authority is implemented. It would be wo

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GST – States – Va Kar/GST/07/2017-S.O. 056 – Dated:- 13-7-2017 – COMMERCIAL TAXES DEPARTMENT NOTIFICATION 13th July, 2017 S.O-56 Dated-13th July, 2017- In exercise of the powers conferred by section 164 of the Jharkhand Goods and Services Tax Act, 2017 (12 of 2017), the State Government hereby makes the following rules further to amend the Jharkhand Goods and Services Tax Rules, 2017, i.e. Departmental Notification S.O. 28 dated 20 June, 2017 and S.O. 52 dated 29 June, 2017 namely:- (1) These rules may be called the Jharkhand Goods and Services Tax (Third Amendment) Rules, 2017. (2) They will be deemed to be effective from the 1st day of July, 2017. 2. In the Jharkhand Goods and Services Tax Rules, 2017, (i) in rule 44, (a) in sub-rule (2), for the words integrated tax and central tax , the words central tax, State tax, Union territory tax and integrated tax shall be substituted; (b) in sub-rule (2), after the words integrated tax , for the brackets and figure (2) , the brackets and

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ssue of the invoice for export, if the goods are not exported out of India; or (b) fifteen days after the expiry of one year, or such further period as may be allowed by the Commissioner, from the date of issue of the invoice for export, if the payment of such services is not received by the exporter in convertible foreign exchange. (2) The details of the export invoices contained in FORM GSTR-1 furnished on the common portal shall be electronically transmitted to the system designated by Customs and a confirmation that the goods covered by the said invoices have been exported out of India shall be electronically transmitted to the common portal from the said system. (3) Where the goods are not exported within the time specified in sub-rule (1) and the registered person fails to pay the amount mentioned in the said sub-rule, the export as allowed under bond or Letter of Undertaking shall be withdrawn forthwith and the said amount shall be recovered from the registered person in accorda

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spection, search and seizure.- (1) Where the proper officer not below the rank of a Joint Commissioner has reasons to believe that a place of business or any other place is to be visited for the purposes of inspection or search or, as the case may be, seizure in accordance with the provisions of section 67, he shall issue an authorisation in FORM GST INS-01 authorising any other officer subordinate to him to conduct the inspection or search or, as the case may be, seizure of goods, documents, books or things liable to confiscation. (2) Where any goods, documents, books or things are liable for seizure under sub-section (2) of section 67, the proper officer or an authorised officer shall make an order of seizure in FORM GST INS-02. (3) The proper officer or an authorised officer may entrust upon the the owner or the custodian of goods, from whose custody such goods or things are seized, the custody of such goods or things for safe upkeep and the said person shall not remove, part with,

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the amount of applicable tax, interest and penalty payable. Explanation.- For the purposes of the rules under the provisions of this Chapter, the applicable tax shall include central tax and State tax or central tax and the Union territory tax, as the case may be and the cess, if any, payable under the Goods and Services Tax (Compensation to States) Act, 2017 (15 of 2017). (2) In case the person to whom the goods were released provisionally fails to produce the goods at the appointed date and place indicated by the proper officer, the security shall be encashed and adjusted against the tax, interest and penalty and fine, if any, payable in respect of such goods. 141. Procedure in respect of seized goods.-(1) Where the goods or things seized are of perishable or hazardous nature, and if the taxable person pays an amount equivalent to the market price of such goods or things or the amount of tax, interest and penalty that is or may become payable by the taxable person, whichever is lower

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ice or statement, the person chargeable with tax makes payment of the tax and interest in accordance with the provisions of sub-section (5) of section 73 or, as the case may be, tax, interest and penalty in accordance with the provisions of sub-section (5) of section 74, he shall inform the proper officer of such payment in FORM GST DRC-03 and the proper officer shall issue an acknowledgement, accepting the payment made by the said person in FORM GST DRC-04. (3) Where the person chargeable with tax makes payment of tax and interest under sub-section (8) of section 73 or, as the case may be, tax, interest and penalty under sub-section (8) of section 74 within thirty days of the service of a notice under sub-rule (1), he shall intimate the proper officer of such payment in FORM GST DRC-03 and the proper officer shall issue an order in FORM GST DRC-05 concluding the proceedings in respect of the said notice. (4) The representation referred to in sub-section (9) of section 73 or sub-sectio

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isions of clause (a) of sub-section (1) of section 79. Explanation.-For the purposes of this rule, specified officer shall mean any officer of the Central Government or a State Government or the Government of a Union territory or a local authority, or of a Board or Corporation or a company owned or controlled, wholly or partly, by the Central Government or a State Government or the Government of a Union territory or a local authority. 144. Recovery by sale of goods under the control of proper officer.- (1) Where any amount due from a defaulter is to be recovered by selling goods belonging to such person in accordance with the provisions of clause (b) of sub-section (1) of section 79, the proper officer shall prepare an inventory and estimate the market value of such goods and proceed to sell only so much of the goods as may be required for recovering the amount payable along with the administrative expenditure incurred on the recovery process. (2) The said goods shall be sold through a

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of fifteen days from the date of auction. On payment of the full bid amount, the proper officer shall transfer the possession of the said goods to the successful bidder and issue a certificate in FORM GST DRC-12. (6) Where the defaulter pays the amount under recovery, including any expenses incurred on the process of recovery, before the issue of the notice under sub-rule (2), the proper officer shall cancel the process of auction and release the goods. (7) The proper officer shall cancel the process and proceed for re-auction where no bid is received or the auction is considered to be non-competitive due to lack of adequate participation or due to low bids. 145. Recovery from a third person.- (1) The proper officer may serve upon a person referred to in clause (c) of sub-section (1) of section 79 (hereafter referred to in this rule as the third person ), a notice in FORM GST DRC-13 directing him to deposit the amount specified in the notice. (2) Where the third person makes the paymen

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FORM GST DRC- 16 prohibiting any transaction with regard to such movable and immovable property as may be required for the recovery of the amount due: Provided that the attachment of any property in a debt not secured by a negotiable instrument, a share in a corporation, or other movable property not in the possession of the defaulter except for property deposited in, or in the custody of any Court, shall be attached in the manner provided in rule 151. (2) The proper officer shall send a copy of the order of attachment or distraint to the concerned Revenue Authority or Transport Authority or any such Authority to place encumbrance on the said movable or immovable property, which shall be removed only on the written instructions from the proper officer to that effect. (3) Where the property subject to the attachment or distraint under sub-rule (1) is- (a) an immovable property, the order of attachment or distraint shall be affixed on the said property and shall remain affixed till the c

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such instrument or a share. (6) The proper officer may specify the amount of pre-bid deposit to be furnished in the manner specified by such officer, to make the bidders eligible to participate in the auction, which may be returned to the unsuccessful bidders or, forfeited in case the successful bidder fails to make the payment of the full amount, as the case may be. (7) The last day for the submission of the bid or the date of the auction shall not be earlier than fifteen days from the date of issue of the notice referred to in sub-rule (4): Provided that where the goods are of perishable or hazardous nature or where the expenses of keeping them in custody are likely to exceed their value, the proper officer may sell them forthwith. (8) Where any claim is preferred or any objection is raised with regard to the attachment or distraint of any property on the ground that such property is not liable to such attachment or distraint, the proper officer shall investigate the claim or object

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on the said date, in the possession of the defaulter as his own property and not on account of any other person, or was in the possession of some other person in trust for him, or in the occupancy of a tenant or other person paying rent to him, the proper officer shall reject the claim and proceed with the process of sale through auction. (12) The proper officer shall issue a notice to the successful bidder in FORM GST DRC-11 requiring him to make the payment within a period of fifteen days from the date of such notice and after the said payment is made, he shall issue a certificate in FORM GST DRC-12 specifying the details of the property, date of transfer, the details of the bidder and the amount paid and upon issuance of such certificate, the rights, title and interest in the property shall be deemed to be transferred to such bidder: Provided that where the highest bid is made by more than one person and one of them is a co-owner of the property, he shall be deemed to be the success

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gainst sale on holidays.-No sale under the rules under the provision of this chapter shall take place on a Sunday or other general holidays recognized by the Government or on any day which has been notified by the Government to be a holiday for the area in which the sale is to take place. 150. Assistance by police.-The proper officer may seek such assistance from the officer-in-charge of the jurisdictional police station as may be necessary in the discharge of his duties and the said officer-in-charge shall depute sufficient number of police officers for providing such assistance. 151. Attachment of debts and shares, etc.- (1) A debt not secured by a negotiable instrument, a share in a corporation, or other movable property not in the possession of the defaulter except for property deposited in, or in the custody of any court shall be attached by a written order in FORM GST DRC-16 prohibiting.- (a) in the case of a debt, the creditor from recovering the debt and the debtor from making

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fficer shall send the order of attachment to such court or officer, requesting that such property, and any interest or dividend becoming payable thereon, may be held till the recovery of the amount payable. 153. Attachment of interest in partnership.- (1) Where the property to be attached consists of an interest of the defaulter, being a partner, in the partnership property, the proper officer may make an order charging the share of such partner in the partnership property and profits with payment of the amount due under the certificate, and may, by the same or subsequent order, appoint a receiver of the share of such partner in the profits, whether already declared or accruing, and of any other money which may become due to him in respect of the partnership, and direct accounts and enquiries and make an order for the sale of such interest or such other order as the circumstances of the case may require. (2) The other partners shall be at liberty at any time to redeem the interest char

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istrict or any other officer authorised in this behalf in FORM GST DRC- 18 to recover from the person concerned, the amount specified in the certificate as if it were an arrear of land revenue. 156. Recovery through court.-Where an amount is to be recovered as if it were a fine imposed under the Code of Criminal Procedure, 1973, the proper officer shall make an application before the appropriate Magistrate in accordance with the provisions of clause (f) of sub-section (1) of section 79 in FORM GST DRC- 19 to recover from the person concerned, the amount specified thereunder as if it were a fine imposed by him. 157.Recovery from surety.-Where any person has become surety for the amount due by the defaulter, he may be proceeded against under this Chapter as if he were the defaulter. 158. Payment of tax and other amounts in installments.- (1) On an application filed electronically by a taxable person, in FORM GST DRC- 20, seeking extension of time for the payment of taxes or any amount du

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to make payment in installments in the preceding financial year under the Act or the Integrated Goods and Services Tax Act, 2017 or the Union Territory Goods and Services Tax Act, 2017 or any of the State Goods and Services Tax Act, 2017; (c) the amount for which installment facility is sought is less than twenty-five thousand rupees. 159. Provisional attachment of property.- (1) Where the Commissioner decides to attach any property, including bank account in accordance with the provisions of section 83, he shall pass an order in FORM GST DRC-22 to that effect mentioning therein, the details of property which is attached. (2) The Commissioner shall send a copy of the order of attachment to the concerned Revenue Authority or Transport Authority or any such Authority to place encumbrance on the said movable or immovable property, which shall be removed only on the written instructions from the Commissioner to that effect. (3) Where the property attached is of perishable or hazardous natu

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r may, upon being satisfied that the property was, or is no longer liable for attachment, release such property by issuing an order in FORM GST DRC- 23. 160. Recovery from company in liquidation.-Where the company is under liquidation as specified in section 88, the Commissioner shall notify the liquidator for the recovery of any amount representing tax, interest, penalty or any other amount due under the Act in FORM GST DRC -24. 161. Continuation of certain recovery proceedings.-The order for the reduction or enhancement of any demand under section 84 shall be issued in FORM GST DRC- 25. Chapter – XIX Offences and Penalties 162. Procedure for compounding of offences.- (1) An applicant may, either before or after the institution of prosecution, make an application under sub-section (1) of section 138 in FORM GST CPD-01 to the Commissioner for compounding of an offence. (2) On receipt of the application, the Commissioner shall call for a report from the concerned officer with reference

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te of the receipt of the order under sub-rule (3), pay the compounding amount as ordered by the Commissioner and shall furnish the proof of such payment to him. (7) In case the applicant fails to pay the compounding amount within the time specified in sub-rule (6), the order made under sub-rule (3) shall be vitiated and be void. (8) Immunity granted to a person under sub-rule (3) may, at any time, be withdrawn by the Commissioner, if he is satisfied that such person had, in the course of the compounding proceedings, concealed any material particulars or had given false evidence. There upon such person may be tried for the offence with respect to which immunity was granted or for any other offence that appears to have been committed by him in connection with the compounding proceedings and the provisions the Act shall apply as if no such immunity had been granted. ; (vii) for FORM GST-RFD-01, FORM GST-RFD-02, FORM GST-RFD-04, FORM GST-RFD-05, FORM GST-RFD-06, FORM GST-RFD-07 and FORM GS

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