Author: admin_gst

Integrated Goods and Services Tax Act
GST Law and Procedure – GST Law and Procedure [January, 2019]
GST
Chapter Twenty One
Integrated Goods and Services Tax Act
The introduction of Goods and Services Tax (GST) is a significant reform in the field of indirect taxes in our country. Multiple taxes levied and collected by the Centre and states would be replaced by one tax called Goods and Services Tax (GST). GST is a multi-stage value added tax on consumption of goods or services or both.
2. A “dual GST” model has been adopted in view of the federal structure of our country. Centre and States will simultaneously levy GST on every supply of goods or services or both which takes place within a State or Union territory. Thus, there shall be two components of GST as under: –
i. Central tax (CGST):
(levied & collected under the authority of CGST Act, 2017 passed by the Parliament)
ii. State tax (SGST)
(levied & collected under the authority of SGST Act, 2017 passed by respecti

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of taxes on sale of goods in the course of interstate trade
4. The CST suffers from following shortcomings:
i. CST is collected and retained by the origin state, which is an aberration. Any indirect tax, by definition is a consumption tax, the incidence of which is borne by the consumer. Logically, the tax should accrue to the destination state having jurisdiction over such consumer.
ii. Input Tax Credit (ITC) of CST is not allowed to the buyer which results in cascading of tax (tax on tax) in the supply chain.
iii. Various accountal forms are required to be filed in CST viz., C Form, E1, E2, F, I, J Forms etc. which adds to the compliance cost of the business and impedes the free flow of trade.
iv. Another negative feature of CST is the opportunity it provides for “arbitrage” because of the huge difference between tax rates under VAT and CST being levied on intra-State sales and inter-State sales respectively
5. The IGST model would remove all these deficiencies. IGST is a mech

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Prescribed order of utilization of IGST/CGST/SGST credit:
The IGST payment can be done by utilizing ITC. The amount of ITC on account of IGST is allowed to be utilized towards payment of IGST, CGST and SGST in that order.
8. Nature of Supply
It is very important to determine the nature of supply – whether it is inter-state or intra state, as the kind of tax to be paid (IGST or CGST+SGST) depends on that.
i. Inter- state Supply:
Subject to place of supply provisions, where the location of the supplier and the place of supply are in
a) two different States;
a) two different Union territories; or
a) a State and a Union territory,
Such supplies shall be treated as a supply of goods or services in the course of inter-State trade or commerce.
Any supply of goods or services in the taxable territory, not being an intra-State supply shall be deemed to be a supply of goods or services in the course of inter-State trade or commerce. Supplies to or by SEZ are defined as inter-State sup

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al tourists
* Any other supply in the taxable territory which is not intra state supply
Thus, the nature of the supply depends on the location of the supplier and the place of supply. Both these terms have been defined in the IGST Act.
9. Location of Supplier broadly is the registered place of business or the fixed establishment of the supplier from where the supply is made. Sometime, a service provider has to go to client location for providing service. However, such place would not be considered as the location of supplier. It has to be either regular place of business or fixed establishment which is having sufficient degree of permanence and suitable structure in terms of human and technical resources.
10. Place of supply
10.1 Place of supply provisions have been framed for goods & services keeping in mind the destination/consumption principle. In other words, place of supply is based on the place of consumption of goods or services. As goods are tangible, the determination of

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e of Supply
1
Where the supply involves movement of goods, whether by the supplier or the recipient or by any other person.
Location of the goods at the time at which the movement of goods terminates for delivery to the recipient.
2
where the goods are delivered to recipient or any person on the direction of third person by way of transfer of title or otherwise, it shall be deemed that third person has received the goods
The principal place of business of such person
3
where there is no movement of goods either by supplier or recipient
Location of such goods at the time of delivery to recipient
4
where goods are assembled or installed at site
The place where the goods are assembled or installed
5
where the goods are supplied on board a conveyance, like vessel, aircraft, train or motor vehicle
The place where such goods are taken on board the conveyance
6
Where the place of supply of goods cannot be determined in terms of sub-section (2), (3), (4) and (5)
It shall be d

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3
Training and performance appraisal,
B2B : Location of such registered person;
B2C: Location where the services are actually performed.
4
Admission to an event or amusement park
Place where the event is actually held or where the park or such other place is located.
5
Organization of an event.
B2B : Location of such registered person;
B2C: Location where the event is actually held.
If event is held outside India :Location of the recipient
6
Transportation of goods including mails
B2B : Location of such registered person;
B2C : Location at which such goods are handed over for their transportation
7
Passenger transportation.
B2B : Location of such registered person;
B2C : Place where the passenger embarks on the conveyance for a continuous journey
8
Services on board a conveyance
Location of the first scheduled point of departure of that conveyance for the journey.
9
Telecommunication services.
Services involving fixed line, circuits, dish etc., place of supply

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ription of supply
Place of supply
1.
B2B
Location of such registered person
2.
B2C
(i) Location of the recipient here the address on record exists, and
(ii) the location of the supplier of services in other cases.
D. Place of supply of services in case of cross-border supplies 🙁 Section 13)
(Where the location of the supplier of services or the location of the recipient of services is outside India)
i. In respect of following category of services, the place of supply is determined with reference to a proxy.
Rest of the services are governed by a default provision.
S.No
Nature of service
Place of supply
1.
Services supplied in respect of goods that are required to be made physically available from a remote location by way of electronic means, (Not Applicable in case of goods that are temporarily imported into India for repairs and exported.)
the location where the services are actually performed, the location where goods are situated
2.
services supplied to an indiv

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f destination of the goods
8.
Passenger transportation.
Place where the passenger embarks on the conveyance for a continuous journey
9.
Services on board a conveyance.
The first scheduled point of departure of that conveyance for the journey.
10.
online information and database access or retrieval services”
The location of recipient of service.
ii. For the rest of the services other than those specified above, a default provision has been prescribed as under.
Default Rule for the cross border supply of Services other than nine Specified Services
S.No.
Description of supply
Place of supply
1
Any
Location of the Recipient of Service If not available in the ordinary course of business: The location of the supplier of service.
11. Supplies in territorial waters: Where the location of the supplier is in the territorial waters, the location of such supplier; or where the place of supply is in the territorial waters, the place of supply is be deemed to be in the coastal Stat

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sidered as 'zero rated supply' on which no tax is payable. However, ITC is allowed subject to such conditions, safeguards and procedure as may be prescribed, refund in respect of such supplies may be claimed by following either of these options:
i. supply made without payment of IGST under Bond and claim refund of unutilised ITC or
ii. supply made on payment of IGST and claim refund of the same.
14. Refund of integrated tax paid on supply of goods to tourist leaving India:
Section 15 of the IGST Act provides for refund of IGST paid to an international tourist leaving India on goods being taken outside India subject to such conditions and safeguards as may be prescribed. An international tourist has been defined as a non-resident of India who enters India for a stay of less than 6 months. IGST would be charged on such supplies as the same is in the course of export.
This Section was not made applicable from 1st July, 2017 and will be notified at a later date once the ecosystem for

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Goods and Services Tax – GST – Dated:- 9-8-2017 – PRESS RELEASE 25th July, 2017 On National Anti-profiteering Authority under GST The GST Council has formed a Selection Committee under the Chairmanship of Cabinet Secretary to identify and recommend eligible persons for appointment as Chairman and Members of the National Anti-profiteering Authority under GST. The National Anti-profiteering Authority is tasked with ensuring the full benefits of a reduction in tax on supply of goods or services flow to the consumers. 2. When constituted by the GST Council, the National Anti-profiteering Authority shall be responsible for applying anti-profiteering measures in the event of a reduction in rate of GST on supply of goods or services or, if the be

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of Safeguards, CBEC who shall give his recommendation for consideration of the National Anti-profiteering Authority. 4. In the event the National Anti-profiteering Authority confirms the necessity of applying anti-profiteering measures, it has the power to order the business concerned to reduce its prices or return the undue benefit availed along with interest to the recipient of the goods or services. If the undue benefit cannot be passed on to the recipient, it can be ordered to be deposited in the Consumer Welfare Fund. In extreme cases the National Anti-profiteering Authority can impose a penalty on the defaulting business entity and even order the cancellation of its registration under GST. 5. The constitution of the National Anti-prof

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Inspection, Search, Seizure and Arrest
GST Law and Procedure – GST Law and Procedure [January, 2019]
GST
Chapter Forty Nine
Inspection, Search, Seizure and Arrest
In any tax administration the provisions for Inspection, Search, Seizure and Arrest are provided to protect the interest of genuine tax payers (as the Tax evaders, by evading the tax, get an unfair advantage over the genuine tax payers) and as a deterrent for tax evasion. These provisions are also required to safeguard Government's legitimate dues. Thus, these provisions acts as a deterrent and by checking evasion provide a level playing field to genuine tax payers.
2. It may be mentioned that the options of Inspection, Search, Seizure and Arrest are exercised, only in exceptional circumstances and as a last resort, to protect the Government Revenue. Therefore, to ensure that these provisions are used properly, effectively and the rights of tax payers are also protected, it is stipulated that Inspection, Search or

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an officer of the rank of Joint Commissioner or above a Joint Commissioner or an officer higher in rank can give such authorization only if he has reasons to believe that the person concerned has done one of the following actions:
(a) Suppression of any transaction relating to supply of goods or services or stock in hand;
(b) Claimed excess input tax credit;
(c) Contravention of any provisions of the Act or the Rules to evade tax;
(d) Transporting or keeping goods which escaped payment of tax or manipulating accounts or stocks which may cause evasion of tax;
Inspection can also be done of the conveyance, carrying a consignment of value exceeding specified limit. The person in charge of the conveyance has to produce documents / devices for verification and allow inspection. Inspection during transit can be done even without authorisation of Joint Commissioner.
(ii) Inspection in movement
(a) Any consignment, value of which is exceeding ₹ 50,000/-, may be stopped at any pl

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ns of search and seizure also provides enough safeguards and the GST Law stipulates that search of any place of business etc. can be carried out only under authorisation from an officer of the rank of Joint Commissioner and if he has a reason to believe that the person concerned has done at least one of the following:-
(a) Goods liable to confiscation or any documents /books/record/things, which may be useful for or relevant to any proceedings, are secreted in any place then all such places can be searched;
(b) All such goods/documents/books/record/ things may be seized, however, if it is not practicable to seize any such goods then the same may be detained. The person from whom these are seized shall be entitled to take copies/ extracts of seized records;
(c) The seized documents/books/things shall be retained only till the time the same are required for examination /enquiry/proceedings and if these are not relied on for the case then the same shall be returned within 30 days from

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sses, a record of entire proceedings is made and forwarded to the Commissioner forthwith.
(iv) Arrests
In the administration of taxation the provisions for arrests are created to tackle the situations created by some unscrupulous tax evaders. To some these may appear very harsh but these are necessary for efficient tax administration and also act as a deterrent and instil a sense of discipline. The provisions for arrests under GST Law have sufficient inbuilt safeguards to ensure that these are used only under authorisation from the Commissioner. Besides this, the GST Law also stipulates that arrests can be made only in those cases where the person is involved in offences specified for the purposes of arrest and the tax amount involved in such offence is more than the specified limit. The salient points of these provisions are:-
(a) Provisions for arrests are used in exceptional circumstance and only with prior authorisation from the Commissioner.
(b) The law lays down a stringent c

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Overview -Input Tax Credit Mechanism in GST
Input Tax Credit (ITC) – GST Ready Reckoner
GST
Introduction – Input Tax Credit Mechanism in GST
Uninterrupted and seamless chain of input tax credit (hereinafter referred to as, “ITC”) is one of the key features of Goods and Services Tax. ITC is a mechanism to avoid cascading of taxes. Cascading of taxes, in simple language, is 'tax on tax'. Under the earlier system of taxation, credit of taxes being levied by Central Government was not available as set-off for payment of taxes levied by State Governments, and vice versa. One of the most important features of the GST system is that the entire supply chain would be subject to GST to be levied by Central and State Government concurrently. As the tax charged by the Central or the State Governments would be part of the same tax regime, credit of tax paid at every stage would be available as set-off for payment of tax at every subsequent stage.
Let us understand how 'cascading' of taxe

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ect he actually pays duty on the 'value added' over and above the cost of the inputs. This mechanism eliminates cascading of taxes. However, when the pen was sold by the manufacturer to a trader he was required to levy VAT on such sale. But under the earlier system, the manufacturer could not use the credit of central excise duty paid on the pen for payment of VAT, as the two were being levied by Central and State government respectively with no statutory linkage between the two. Hence he was required to pay VAT on the entire value of the pen, i.e. ₹ 22/-, which actually includes the central excise duty to the tune of ₹ 2/-. This was cascading of taxes or tax on tax as VAT was not only paid on the value of pen i.e. ₹ 20/- but also on the central excise duty i.e. ₹ 2/-.
Goods and Services Tax (GST) has mitigated such cascading of taxes. Under the present system most of the indirect taxes levied by Central and the State Governments on supply of goods or services

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State Tax] on intra-state supply of goods or services or both.
c) Union Territory Goods and Services Tax (UTGST) [also known as Union territory Tax] on intra-union territory supply of goods or services or both.
d) Integrated Goods and Services Tax (IGST)[also known as Integrated Tax] on inter-state supply of goods or services or both. In case of import of goods also the present levy of Countervailing Duty (CVD) and Special Additional Duty (SAD) would be replaced by Integrated tax.
The protocol to avail and utilise the credit of these taxes is as follows:
Credit of
To be utilised first for payment of
May be utilised further for payment of
CGST
CGST
IGST
SGST/UTGST
SGST/UTGST
IGST
IGST
IGST
CGST, then SGST/UTGST
What is the Input Tax Credit.
Input credit means at the time of paying tax on output, you can reduce the tax you have already paid on inputs and pay the balance amount.
Here's how:
When you buy a product/service from a registered dealer you pay taxes on the pu

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o included.
c) Tax is actually paid by the supplier.
d) He has furnished the return.
e) If the inputs are received in lots, he will be eligible to avail the credit only when the last lot of the inputs is received.
f) He should pay the supplier the value of the goods or services along with the tax within 180 days from the date of issue of invoice, failing which the amount of credit availed by the recipient would be added to his output tax liability, with interest [rule 2(1) & (2) of ITC Rules]. However, once the amount is paid, the recipient will be entitled to avail the credit again. In case part payment has been made, proportionate credit would be allowed.
C) Documents on the basis of which credit can be availed are:
a) Invoice issued by a supplier of goods or services or both
b) Invoice issued by recipient alongwith proof of payment of tax
c) A debit note issued by supplier
d) Bill of entry or similar document prescribed under Customs Act
e) Revised invoice
f) Do

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rance, health insurance except where it is obligatory for an employer under any law;
iv. travel benefits extended to employees on vacation such as leave or home travel concession;
c) Works contract services when supplied for construction of immovable property, other than plant &machinery, except where it is an input service for further supply of works contract;
d) Goods or services received by a taxable person for construction of immovable property on his own account, other than plant & machinery, even when used in course or furtherance of business;
e) goods and/or services on which tax has been paid under composition scheme;
f) goods and/or services used for private or personal consumption, to the extent they are so consumed;
g) Goods lost, stolen, destroyed, written off, gifted, or free samples;
h) Any tax paid due to short payment on account of fraud, suppression, mis-declaration, seizure, detention.
G) Special circumstances under which ITC is available:
a) A person

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le, the person making such supplies shall be entitled to take ITC in respect of goods held in stock (inputs as such and inputs contained in semi-finished or finished goods) relatable to exempt supplies. He shall also be entitled to take credit on capital goods used exclusively for such exempt supply subject to reductions for the earlier usage as prescribed in the rules.
e) ITC, in all the above cases, is to be availed within 1 year from the date of issue of invoice by the supplier.
f) In case of change of constitution of a registered person on account of sale, merger, demerger etc, the unutilised ITC shall be allowed to be transferred to the transferee.
g) A person switching over from composition scheme under section 10 to normal scheme or where a taxable supply become exempt, the ITC availed in respect of goods held in stock (inputs as such and inputs contained in semi-finished or finished goods) as well as capital goods will have to be paid.
h) In case of supply of capital go

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f the available ITC in such cases has to be worked out as prescribed in the rules.
I) Provisions Specifically applicable for Construction Service w.e.f. 01.04.2019, in case of supply of construction services, the input tax shall be calculated finally, for each on going project or project which commences on or after 1st April, 2019, which did not undergo or did not require transition of input tax credit consequent to change of rates of tax on 1st April, 2019 in accordance with notification No. 11/2017- Central Tax (Rate), dated the 28th June, 2017, as amended, for the entire period from the commencement of the project or 1st July, 2017, whichever is later, to the completion or first occupation of the project, whichever is earlier, before the due date for furnishing of the return for the month of September following the end of financial year in which the completion certificate is issued or first occupation takes place of the project. This has to be calculated in the manner specifically

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Reduced tax liability on homes under GST
GST
Dated:- 9-8-2017

=============
Document 1
davp 15502/13/0144/1718
JAGO
GRAHAK
JAGO
==
GST
NATION
TAX
MARKET
==
==
GOOD NEWS
FOR
HOME
BUYERS
=== == =
Reduced tax liability
on homes under GST
The CBEC and States have received many complaints that in view of the works contract
service tax rate under GST at 12% in respect of under construction flats, complex etc, the people
who have booked flats and made part payment before 1st July, 2017, are being asked to
bear higher tax incidence for payments made after 1st July, 2017. This is against the GST law,
as explained below.
Construction of flats, complex, buildings have a lower incidence of GST as compared to a
plet

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ction material was
earlier being borne by the builders, which they passed on to the customers as part of the price
charged from them. This was not visible to the customer as it formed a part of the cost of the flat.
• The earlier headline rate of service tax on construction of flats, residences, offices etc. was 4.5%. Over and above
this, VAT @1% under composition scheme was also charged. The buyer only looked at the headline rate of 5.5%.
In other Cities/States, where VAT was being levied under the composition scheme @2% or above, the headline
rate visible to the customer was above 6.5%. What the customer did not see is the embedded taxes on account of
cascading and sticking of input taxes in the cost of the flat etc.
•

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Imports in GST Regime
GST Law and Procedure – GST Law and Procedure [January, 2019]
GST
Chapter Twenty Three
Imports in GST Regime
Introduction
Under the GST regime, Article 269A constitutionally mandates that supply of goods, or of services, or both in the course of import into the territory of India shall be deemed to be supply of goods, or of services, or both in the course of inter-State trade or commerce. So import of goods or services will be treated as deemed inter-State supplies and would be subject to Integrated tax. While IGST on import of services would be leviable under the IGST Act, the levy of the IGST on import of goods would be levied under the Customs Act, 1962 read with the Custom Tariff Act, 1975. The importer of services will have to pay tax on reverse charge basis. However, in respect of import of online information and database access or retrieval services (OIDAR) by unregistered, non-taxable recipients, the supplier located outside India shall be resp

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ted into India shall be levied and collected in accordance with the provisions of the Customs Tariff Act, 1975 on the value as determined under the said Act at the point when duties of customs are levied on the said goods under the Customs Act, 1962. The integrated tax on goods shall be in addition to the applicable Basic Customs Duty (BCD) which is levied as per the Customs Tariff Act. In addition, GST compensation cess, may also be leviable on certain luxury and de-merit goods under the Goods and Services Tax (Compensation to States) Cess Act, 2017.
The Customs Tariff Act, 1975 has accordingly been amended to provide for levy of integrated tax and the compensation cess on imported goods. Accordingly, any goods which are imported into India shall, in addition to the Basic Customs duty, be liable to integrated tax at such rate as is leviable
Sr.No.
Date of prior intimation given for procuring deemed export supplies
Details of registered person
Jurisdictional GST officer details of

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egrated tax shall be assessable value plus Customs Duty levied under the Act, and any other duty chargeable on the said goods under any law for the time being in force as an addition to, and in the same manner as, a duty of customs.
The value of the imported article for the purpose of levying cess shall be assessable value plus Basic Customs Duty levied under the Act, and any sum chargeable on that goods under any law for the time being in force as an addition to, and in the same manner as, a duty of customs. The integrated tax paid shall not be added to the value for the purpose of calculating cess.
Let's take an example:
Suppose the assessable value of an article imported into India is ₹ 100/-. Basic Customs Duty is 10% ad-valorem. Education Cess is 3%; Integrated tax rate is 18% and Compensation Cess is 15%
The taxes will be calculated as under:
Particulars
Duty
(A) Assessable Value
₹ 100/-
(B) Basic Customs Duty@10%
Rs.10/-
(C) Education Cess @3%
Rs.0.30
(D

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atment of Goods imported into India and deposited in a warehouse and sold while in warehouse before clearance from Customs (Circular No. 46/2017 dated 24th November, 2017):
The Customs Act, 1962 provides for removal of goods from a customs station to a warehouse without payment of duty. The said Act has been amended to include 'warehouse' in the definition of “customs area” in order to ensure that an importer would not be required to pay the Integrated tax at the time of removal of goods from a customs station to a warehouse.
However, the transaction of sale / transfer etc. of the warehoused goods between the importer and any other person may be at a price higher than the assessable value of such goods. Such a transaction squarely falls within the definition of “supply” and shall be taxable under the IGST Act, 2017. It may be noted that as per sub-section (2) of section 7 of the IGST Act, any supply of imported goods which takes place before they cross the customs frontiers of India,

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one or multiple, shall be levied and collected only at the time of importation i.e. when the import declarations are filed before the Customs authorities for the customs clearance purposes for the first time. Further, value addition accruing in each such high sea sale shall form part of the value on which IGST is collected at the time of clearance.
Import of goods by 100% EOU's and SEZs:
Import of goods by 100% EOU's would be governed by Notification no. 52/2003-Customs as amended by Notification no. 78/2017-Customs dated 13.10.2017. EOUs are allowed duty free import of goods (exempt from Customs duties, IGST & Compensation Cess) under the said notifications. However, exemption from IGST is only available till 31.03.2018.
Goods imported by a unit or a developer in the Special Economic Zone for authorised operations are exempted from the whole of integrated tax under section 3 (7) of the Customs Tariff Act, 1975 vide Notification No. 64/2017-Customs dated 05.07.2017.
Input tax credi

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us, if an importer say is located in Rajasthan, the state tax component of the integrated tax shall accrue to the State of Rajasthan.
Import of services
Import of services has specifically been defined under IGST Act, 2017 and refers to supply of any service where the supplier is located outside India, the recipient is located in India and the place of supply of service is in India.
As per the provisions contained in Section 7(1) (b) of the CGST Act, 2017, import of services for a consideration whether or not in the course or furtherance of business shall be considered as a supply. Thus, in general, import of services without consideration shall not be considered as supply. However, business test is not required to be fulfilled for import of service to be considered as supply.
Furthermore, in view of the provisions contained in Schedule I of the CGST Act, 2017, the import of services by a taxable person from a related person or from a distinct person as defined in Section 25 of the

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taxable person from a related person or from a distinct person
Not required
Necessarily Required
As per the provisions contained in Section 21 of the IGST Act, 2017, all import of services made on or after the appointed day i.e 1st July, 2017 will be liable to integrated tax regardless of whether the transactions for such import of services had been initiated before the appointed day. However, if the tax on such import of services had been paid in full under the existing law, no tax shall be payable on such import under the IGST Act. In case the tax on such import of services had been paid in part under the existing law, the balance amount of tax shall be payable on such import under the IGST Act, 2017. For instance, suppose a supply of service for Rs. One crore was initiated prior to the introduction of GST, a payment of ₹ 20 lacs has already been made to the supplier and service tax has also been paid on the same, the integrated tax shall have to be paid on the balance &#83

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ervices
2.1
Services are provided on goods but from a remote location by way of electronic means
Location where goods are situated at the time of supply of services
2.2.
Above provisions is not applicable in respect of goods which are temporarily imported into India for repairs and are exported after repairs
3.
Services supplied directly in relation to an immovable property
Place where the immovable property is located or intended to be located
4.
Admission to, or organisation of an event
Place where the event is actually held
4.1
Above Services provided in more than one country including India
India
4.2
Above Services provided in more than one state
Proportionate Basis
5.
Services supplied by a banking company, or a financial institution, or a non-banking financial company, to account holders
Location of the supplier of services
5.1
Intermediary services
5.2
Services consisting of hiring of means of transport, including yachts but excluding aircrafts and vessel

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Goods and Services Tax – GST – Dated:- 9-8-2017 – PRESS RELEASE 07th August, 2017 The Schedule to the Goods and Service Tax (GST) (Compensation to State) Act 2017 specifies the maximum rate at which Goods and Service Tax Compensation Cess may be collected. In respect of motor vehicles, the maximum rate at which Goods and Service Tax Compensation Cess may be collected is 15%. 2. After introduction of GST, the total tax incidence on motor vehicles [GST + Compensation Cess] has come down vis-a-vis

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GST on Works Contract Service provided to Government Authorities
Query (Issue) Started By: – Mayuri Shete Dated:- 9-8-2017 Last Reply Date:- 10-8-2017 Goods and Services Tax – GST
Got 3 Replies
GST
Hello
We provide works contract services. rate of GST on the same is 18%.
But is it same if we provide the service to Government Authorities (Government of India,Minsitry of Defence (R&D) ?
Previously we were exempted from service tax.
please help.
Reply By KASTURI SETHI:
The Reply:

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Goods and Services Tax – Started By: – pawan kumar – Dated:- 9-8-2017 Last Replied Date:- 30-12-1899 – if pathpedhi (Credit Co operative Society) paid commission to their agent. in this case can credit cooperative society paid agent gst on RCM basis on commission amount . or agent have to take gst registration.Agent means who collect money from client and deposit it into client account in credit co operative society. for this service society paid commission to their agent. can society paid gst

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GSTR – 1 filing query
Query (Issue) Started By: – RameshBabu Kari Dated:- 9-8-2017 Last Reply Date:- 12-8-2017 Goods and Services Tax – GST
Got 1 Reply
GST
Dear Experts,
While filing the GSTR-1 through online, There is a problem with it i.e
1.In B2B transactions, We have uploaded the all out word supplies(total invoices is 34) but in the B2B, showing only 24 only. and also not matching the total liability. (In this case, if we try to enter any inovice, it is showing that this invo

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GST Practitioners
GST Law and Procedure – GST Law and Procedure [January, 2019]
GST
Chapter Forty Three
GST Practitioners
Section 48 of the CGST Act provides for authorisation of an eligible person to act as approved GST practitioners. A registered person may authorise an approved GST practitioner to furnish information, on his behalf, to the government. The manner of approval of goods and services tax practitioners, their eligibility conditions, duties and obligations, manner of removal and other conditions relevant for their functioning have been prescribed in rule 24 and 25 of the Return Rules. Standardised formats from GST PCT- 1 to GST PCT-5 have been prescribed for making application for enrolment as GST practitioner, certificate of enrolment, show cause notice for disqualification, order of rejection of application of enrolment, list of approved GST practitioners, authorisation letter and withdrawal of authorisation. A goods and services tax practitioner enrolled in a

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ation having a degree in Commerce, Law, Banking including Higher Auditing, or Business Administration or Business Management from any Indian University established by any law for the time being in force; or
(ii) a degree examination of any Foreign University recognized by any Indian University as equivalent to the degree examination mentioned in sub clause (i); or
(iii) any other examination notified by the Government, on the recommendation of the Council, for this purpose; or
(iv) any degree examination of an Indian University or of any Foreign University recognized by any Indian University as equivalent of the degree examination or
(v) has passed any of the following examinations, namely. –
(a) final examination of the Institute of Chartered Accountants of India; or
(b) final examination of the Institute of Cost Accountants of India; or
(c) final examination of the Institute of Company Secretaries of India.
A person desirous of becoming GST Practitioner has to submit

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take any or all of the following activities on behalf of a registered person:
(a) furnish details of outward and inward supplies;
(b) furnish monthly, quarterly, annual or final return;
(c) make deposit for credit into the electronic cash ledger;
(d) file a claim for refund; and
(e) file an application for amendment or cancellation of registration.
But it has been provided that a confirmation form registered person shall be sought where an application relating to a claim for refund or an application for amendment or cancellation of registration has been submitted by the goods and services tax practitioner. In addition, a GST practitioner shall also be allowed to appear as authorised representative before any officer of department, Appellate Authority or Appellate Tribunal, on behalf of such registered person who has authorised him to be his GST practitioner.
Conditions for GST Practitioner
Any registered person may give consent and authorise a GST practitioner in the form GST P

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tion shall be sought from the registered person over email or SMS. The registered person before confirming, should ensure that the facts mentioned in the return are true and correct before signature. However, failure to respond to request for confirmation shall be treated as deemed confirmation.
The GST practitioner shall prepare all statements with due diligence and affix his digital signature on the statements prepared by him or electronically verify using his credentials. If the GST practitioner is found guilty of misconduct, his enrolment will be liable to be cancelled. A show cause notice would be issued to him in the form GST PCT-3.
List of Formats (GST Practitioner)
Sr.No.
Form No.
Description
1.
GST PCT-1
Application for Enrolment as Goods and Services Tax Practitioner
2.
GST PCT-02
Enrolment Certificate for Goods and Services Tax Practitioner
3.
GST PCT-03
Show Cause Notice for disqualification
4.
GST PCT-04
Order of Rejection of Application for enrolment as G

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Composite Supply [Section 8(a) of CGST Act, 2017]
Levy and Collection – GST Ready Reckoner
GST
Composite Supply
General Introduction
The taxable event under GST is supply of goods or services or both. GST will be payable on every supply of goods or services or both unless otherwise exempted. The rates at which GST is payable for individual goods or services or both is also separately – notified. Classification of supply (whether as goods or services, the category of goods and services) is essential to charge applicable rate of GST on the particular supply. The application of rates will pose no problem if the supply is of individual goods or services which is clearly identifiable and the goods or services are subject to a particular rate of tax.
But not all supplies will be such simple and clearly identifiable supplies. Some of the supplies will be a combination of goods or combination of services or combination of goods and services both. Each individual component in a give

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ere such supply or service is for cash, deferred payment or other valuable consideration.
Time of supply in case of Composite supply
If the composite supply involves supply of services as principal supply, such composite supply would qualify as supply of services and accordingly the provisions relating to time of supply of services would be applicable. Alternatively, if composite supply involves supply of goods as principal supply, such composite supply would qualify as supply of goods and accordingly, the provisions relating to time of supply of goods would be applicable.
Some clarifications on composite given by CBIC
1. Clarification on taxability of printing contracts
* The printing industry in India in particular faces a dilemma in determining whether the nature of supply provided is that of goods or services and whether in case certain contracts involve both supply of goods and services, whether the same would constitute a supply of goods or services or if it would be a co

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ply of printed envelopes, letter cards, printed boxes, tissues, napkins, wall paper etc. falling under Chapter 48 or 49, printed with design, logo etc. supplied by the recipient of goods but made using physical inputs including paper belonging to the printer, predominant supply is that of goods and the supply of printing of the content [supplied by the recipient of supply] is ancillary to the principal supply of goods and
– therefore such supplies would constitute supply of goods falling under respective headings of Chapter 48 or 49 of the Customs Tariff.
2. Retreading of tyres is supply of services but supply of retreaded tyre is goods, is composite supply and pre dominant element is process of retreading which is services. Rubber used for retreading is an ancillary supply. [ Circular No. 34/8/2018-GST dated 01.03.2018 ]
3. Bus body building classification of this composite supply, as goods or service would depend on which supply is the principal supply which may be determined o

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doctor/nutritionists is a part of composite supply of healthcare and not separately taxable. Other supplies of food by a hospital to patients (not admitted) or their attendants or visitors are taxable. [ Circular No. 32/06/2018-GST Dated 12.02.2018 ]
Important Case Laws
1. M/S. South Indian Federation of Fishermen Societies [2022 (61) G.S.T.L. 205 (A.A.R. – GST – T.N.)] – AMC of machines, it is cover both supply of goods & services, the predominant intention is provide maintenance services. it is considered composite supply of services where the principal supply is services and the supply of goods is incidental to such supply of services.
2. Supply of Grated supari, lime and tobacco in single pack, it is a composite supply of goods, wherein chewing tabacco is the principal supply. [ M/S. Jainish Anant Kumar Patel, 2021 (1) TMI 493 – AAR, Gujarat ]
3. Supply of sale of space in print media along with designing , selling of space in print media, is a principal supply, it is a comp

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Benefits of Goods and Services Tax (GST)
GST Law and Procedure – GST Law and Procedure [January, 2019]
GST
Chapter Forty Five
Benefits of Goods and Services Tax (GST)
GST stands for Goods and Services Tax which is levied on the supply of goods or services or both in India. GST subsumes a number of existing indirect taxes which were earlier levied by the Centre and State Governments including Central Excise duty, Service Tax, VAT, Purchase Tax, Central Sales Tax, Entry Tax, Local Body Taxes, Octroi, Luxury Tax, etc.
It brings benefits to all the stakeholders' viz. industry, government and the citizens. It is expected to lower the cost of goods and services, boost the economy and make our products and services globally competitive. GST will make India a common national market with uniform tax rates and procedures and removes the economic barriers, thereby paving the way for an integrated economy at the national level. By subsuming most of the Central and State indirect taxes

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parity in taxation on local and imported products.
Under the GST regime, exports are zero rated in entirety unlike the earlier system where refund of some taxes was not allowed due to fragmented nature of indirect taxes between the Centre and the States. All taxes paid on the goods or services exported or on the inputs or input services used in the supply of such export goods or services shall be refunded. The principle of exporting only the cost of goods or services and not taxes would be followed. This will boost Indian exports thereby improving the balance of payments position. Exporters are being facilitated by grant of provisional refund of 90% of their claims within seven days of issue of acknowledgement of their application, thereby resulting in the easing of position with respect to cash flows.
Benefits of Goods and Services Tax (GST)
GST is expected to bring buoyancy to the Government Revenue by widening the tax base and improving the taxpayer compliance. GST is likely to i

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need for multiple record keeping for a variety of taxes leading to lesser investment of resources and manpower in maintaining records.
Common procedures for registration of taxpayers, refund of taxes, uniform formats of tax return, common tax base, common system of classification of goods or services along with timelines for every activity will lend greater certainty to taxation system.
GST is largely technology driven. The interface of the taxpayer with the tax authorities is through the common portal (GSTN). There are simplified and automated procedures for various processes such as registration, returns, refunds, tax payments, etc. All processes, be it of applying for registration, filing of returns, payment of taxes, filing of refund claims etc. , is done online through GSTN. The input tax credit will be verified online. Electronic matching of input tax credit all – across India will make the process more transparent and accountable. This will encourage a culture of compliance.

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Appeals and Review Mechanism under GST
GST Law and Procedure – GST Law and Procedure [January, 2019]
GST
Chapter Fifty
Appeals and Review Mechanism under GST
Introduction
Tax laws (or any laws, for that matter) impose obligations. Such obligations are broadly of two kinds: tax-related and procedure-related. The taxpayer's compliance with these obligations is verified by the tax officer (by various instruments such as scrutiny, audit, anti-evasion, etc.), as a result of which sometimes there are situations of actual or perceived non-compliance. If the difference in views persists, it results into a dispute, which is then required to be resolved. Tax law recognizes that on any given set of facts and laws, there can be different opinions or viewpoints. Hence, it is likely that the taxpayer may not agree with the “adjudication order” so passed by the tax officer. It is equally possible that the Department may itself not be in agreement with the adjudication order in some cases.

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proper officer of SGST for the same transaction and issue the order with respect to the CGST as well as the SGST/UTGST component of the same transaction. The Act also provides that where a proper officer under one Act(say CGST) has passed an order, any appeal/review/revision/rectification against the said order will lie only with the proper officers of that Act only (CGST Act)So also if any order is passed by the proper officer of SGST, any appeal/review/revision/rectification will lie with the proper officer of SGST only.
Appellate Mechanism
A person who is aggrieved by a decision or order passed against him by an adjudicating authority, can file an appeal to the Appellate Authority (AA, for short). It is important to note that it is only the aggrieved person who can file the appeal. Also, the appeal must be against a decision or order passed under the Act. It is to be noted that no appeals whatsoever can be filed against the following orders:-
(a) an order of the Commissioner or o

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hall not refer the case back to the authority that passed the said decision or order. The AA can also increase the “rigour” of the order appealed against by enhancing any fee or penalty or fine in lieu of confiscation or confiscating goods of greater value or reducing the amount of refund or input tax credit, but this can only be done after the AA has given to the appellant a reasonable opportunity of showing cause against the proposed order. Further, if the AA is of the opinion that any tax has not been paid or short-paid or erroneously refunded, or where input tax credit has been wrongly availed or utilized, no order requiring the appellant to pay such tax or input tax credit shall be passed unless the appellant is given notice to show cause against the proposed order and the order is passed within the time limit specified under section 73 or Section 74 of the CGST Act, 2017.
The Order-in-appeal has to be a “speaking order” i.e. it should state the points for determination, the deci

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me Court and an appeal from the decision of the State Bench will lie to the jurisdictional High Court on substantial questions of law.
Appeal to the Tribunal by the aggrieved person is to be filed within 3 months from the communication of the order under appeal. Further, Tribunal has the power to condone delay (of up to 3 months in case of appeals or 45 days in case of cross objections, beyond the mandatory period) on being satisfied that there is sufficient cause for the delay. The Tribunal has the discretion not to admit any appeal involving an amount of Rs. Fifty Thousand or less.
The law also provides for filing of cross-objections by the respondent against such part of the order against which the respondent may initially not have chosen to file an appeal. It is provided that on receipt of notice that an appeal has been filed (by the appellant), the party against whom the appeal has been preferred (i.e. the respondent) may, notwithstanding that he may not have appealed against su

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portunity) it is also provided that the Tribunal may, if sufficient cause is shown, grant up to 3 adjournments to either side.
Concept of pre-deposit
As mentioned earlier, the right to appeal is a statutory right which operates within the limitations placed on it by the law. One such limitation flows from the principle that an appellant must first deposit the adjudged dues before his further appeal can be heard. However, often an appellant may succeed in his appeal, and hence it would (in retrospect) be unfair to saddle him with this financial burden. To balance these factors, tax laws mandate some “pre-deposit” so as to discourage frivolous appeals and also safeguard the bonafide interests of both the taxpayers and the revenue.
The CGST Act, 2017 require an appellant before AA to pre-deposit full amount of tax, interest, fine, fee and penalty, as is admitted by him, arising from the impugned order and a sum equal to 10% of the remaining amount of tax in dispute arising from the imp

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dicating authority or the appellate authority. The GST Law provides that in such cases, the Department can file what is commonly known as a “review application/appeal”. The GST Law gives powers to the Commissioner to review any order passed by his subordinates acting either as an adjudicating authority, or the appellate authority or revisional authority. If the Commissioner is of the view that any order passed by such authorities are not legal and proper, he can direct any officer subordinate to him to apply to the competent authority. For example, if the order of adjudicating authority is reviewed, he can order his subordinate to file an appeal before the appellate authority. If the order of the appellate authority or the revisional authority is reviewed, he can direct his subordinate to file an appeal before the Tribunal. The grounds for appeal will be mentioned in his order. The review of the order and the consequent filing of appeal by the subordinate has to be done within a period

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ther inquiry as may be necessary, pass such order, as he thinks just and proper, including enhancing or modifying or annulling the said decision or order.
The above power is subject to the condition that non-appealable orders and decision cannot be revised. Further the power of revision cannot be exercised if: –
(a) the order has been subject to an appeal before AA or Tribunal or High Court or Supreme Court; or
(b) the period of six months (from the date of communication of order) has not yet expired or more than three years have expired after the passing of the decision or order sought to be revised; or
(c) the order has already been taken for revision at an earlier stage; or
(d) the order sought to be revised is a revisional order in the first place:
If the said decision or order involves an issue on which the Appellate Tribunal or the High Court has given its decision in some other proceedings and an appeal to the High Court or the Supreme Court against such decision of the Ap

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presentative (except when he is required under the Act to appear personally for examination on oath or affirmation).
For this purpose, “authorised representative” has been defined in the Act itself. Broadly, it includes a relative, a regular employee, an advocate, a chartered accountant, a cost accountant, a company secretary, or any person with prescribed qualifications. It is also provided that indirect tax gazetted officers can appear as authorised representative after one year from retirement.
The GST law also provides for some disqualifications for an authorised representative such as dismissal from government service, conviction under some specified Acts, insolvency, misconduct, etc. Such orders of disqualification are, however, required to be passed after following the principles of natural justice.
Appeal to the High Court
The law provides that either side (department or party) if aggrieved by any order passed by the State Bench or Area Bench of the Tribunal may file an app

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Advance Ruling Mechanism in GST
Advance Rulings – GST Ready Reckoner
GST
Chapter Thirty Seven
Advance Ruling Mechanism in GST
Introduction
An advance ruling helps the applicant in planning his activities, which are liable for payment of GST, well in advance. It also brings certainty in determining the tax liability, as the ruling given by the Authority for Advance Ruling is binding on the applicant as well as Government authorities. Further, it helps in avoiding long drawn and expensive litigation at a later date. Seeking an advance ruling is inexpensive and the procedure is simple and expeditious. It thus provides certainty and transparency to a taxpayer with respect to an issue which may potentially cause a dispute with the tax administration. A legally constituted body called Authority for Advance Ruling (AAR) can give a binding ruling to an applicant who is a registered person or is desirous of obtaining registration. The advance ruling given by the Authority can be app

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Advance Ruling include:
i. provide certainty in tax liability in advance, in relation to an activity proposed to be undertaken by the applicant;
ii. attract Foreign Direct Investment (FDI);
iii. reduce litigation;
iv. pronounce ruling expeditiously in transparent and inexpensive manner;
What are the matters/questions specified in Section 97(2) & Section 100(1) of the CGST Act, 2017
(a) classification of any goods or services or both;
(b) applicability of a notification issued under the provisions of CGST Act;
(c) determination of time and value of supply of goods or services or both;
(d) admissibility of input tax credit of tax paid or deemed to have been paid;
(e) determination of the liability to pay tax on any goods or services or both;
(f) whether applicant is required to be registered;
(g) whether any particular thing done by the applicant with respect to any goods or services or both amounts to or results in a supply of goods or services or both, within the meaning

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/ Union Territory Act and not the Central Act. This would mean that the ruling given by the AAR & AAAR will be applicable only within the jurisdiction of the concerned state or union territory. It is also for this reason that questions on determination of place of supply cannot be raised with the AAR or AAAR.
To whom the Advance Ruling is applicable
An advance ruling pronounced by AAR or AAAR shall be binding only on the applicant who has sought the advance ruling and on the concerned officer or the jurisdictional officer in respect of the applicant. This clearly means that an advance ruling is not applicable to similarly placed other taxable persons in the State. It is only limited to the person who has applied for an advance ruling.
Fees for filing an application before AAR and AAAR
* Fee deposited by the Applicant or applicant
* In case of AAR fee of ₹ 10000/- (Five thousand each under CGST and SGST Act) has to be deposited along with every application GST ARA-01 to A

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de (but excluding the period when advance ruling was given and up to the period when the order declaring it to be void is issued). An order declaring advance ruling to be void can be passed only after providing an opportunity of hearing to the applicant.
Procedure for obtaining Advance Ruling
* The applicant desirous of obtaining advance ruling should make application to AAR in a prescribed form and manner.
* The format of the form and the detailed procedure for making application have been prescribed in Rule 104 of the CGST Rules, 2017.
* An application for obtaining an advance ruling under section 97(1) shall be made on the common portal in FORM GST ARA-01 and shall be accompanied by a fee of five thousand rupees, to be deposited in the manner specified in section 49 (Section 49 deals with procedure of payment of tax/interest/penalty and the mechanism to make payment through Electronic Cash and Credit Ledgers).
* The application, the verification contained therein and all th

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cation. Before giving its ruling, it shall examine the application and any further material furnished by the applicant or by the concerned departmental officer.
* Before giving the ruling, AAR must hear the applicant or his authorized representative as well as the jurisdictional officers of CGST/SGST.
* If there is difference of opinion between the two members of AAR, they shall refer the point or points on which they differ to the AAAR for hearing the issue. If the members of AAAR are also unable to come to a common conclusion in regard to the point(s) referred to them by AAR, then it shall be deemed that no advance ruling can be given in respect of the question on which difference persists at the level of AAAR.
Appeals against order of AAR
If the applicant is aggrieved with the finding of the AAR, he can file an appeal with AAAR. The form and manner of filing appeal with AAAR is given in Rule 106 of the CGST Rules, 2017. An appeal against the advance ruling shall be made by an

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in the case of the concerned officer or jurisdictional officer, by an officer authorised in writing by such officer; and
(b) in the case of an applicant, in the manner specified in rule 26 (DSC/e-signature).
Any appeal must be filed within thirty days from the date on which the advance ruling is communicated to the concerned officer, the jurisdictional officer and applicant.
The Appellate Authority must pass an order after hearing the parties to the appeal within a period of ninety days of the filing of an appeal. If members of AAAR differ on any point referred to in appeal, it shall be deemed that no advance ruling is issued in respect of the question under appeal.
Manual Filing of applications before AAR & AAAR
As per rules 104 and 106 of the CGST Rules, 2017 the application for obtaining an advance ruling and filing an appeal against an advance ruling shall be made by the applicant on the common portal. However, due to the unavailability of the requisite forms on the common p

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ations.
Form and Manner of Application to the Authority for Advance Ruling
An application for obtaining an advance ruling under sub-section (1) of section 97 of the CGST Act and the rules made thereunder, shall be made in quadruplicate, in FORM GST ARA-01. The application shall clearly state the question on which the advance ruling is sought. The application shall be accompanied by a fee of five thousand rupees which is to be deposited online by the applicant, in the manner specified under section 49 of the CGST Act. It is reiterated that though the application shall be filed manually till the advance ruling module is made available on the common portal, the fee is required to be deposited online in terms of section 49 of the CGST Act.
In order to make the payment of fee for filing an application for Advance Ruling on the common portal, the applicant has to fill his details using “Generate User ID for Advance Ruling” under “User Services”. After entering the email id and mobile numb

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m India or is mentally incapacitated from attending to his affairs, by any other adult member of such family or by the authorised signatory of such Karta;
(c) in the case of a company, by the Chief Executive Officer or the authorized signatory thereof;
(d) in the case of a Government or any Governmental agency or local authority, by an officer authorised in this behalf;
(e) in the case of a firm, by any partner thereof, not being a minor or the authorized signatory thereof;
(f) in the case of any other association, by any member of the association or persons or the authorised signatory thereof;
(g) in the case of a trust, by the trustee or any trustee or the authorised signatory thereof; or
(h) in the case of any other person, by some person competent to act on his behalf, or by a person authorised in accordance with the provisions of section 48 of the CGST Act.
Form and Manner of Appeal to the Appellate Authority for Advance Ruling
An appeal against the advance ruling issued u

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inst is communicated to the applicant or the concerned officer or the jurisdictional officer, as the case maybe.
The appeal, the verification contained therein and all the relevant documents accompanying such appeal shall be signed-
a) in the case of the concerned officer or jurisdictional officer, by an officer authorised in writing by such officer; and
b) in the case of an applicant, in the manner specified above
The application for advance ruling or the appeal before the Appellate Authority shall be filed in the jurisdictional office of the respective State Authority for Advance Ruling or the State Appellate Authority for Advance Ruling respectively.
If the space provided for answering any item in the Forms is found to be insufficient, separate sheets may be used. Further, the application, the verification appended thereto, the Annexures to the application and the statements and documents accompanying the Annexures must be self-attested.
The contact details of all the AARs for

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Accounts and Records in GST by Registered person [section 35(1) or (3) or (4) or (6)]
Accounts and Records – GST Ready Reckoner
GST
Accounts and Records in GST by Registered person 
Introduction
Assessment in GST is mainly focused on self-assessment by the taxpayers themselves. Every taxpayer is required to self-assess the taxes payable and furnish a return for specified tax periods i.e. the period for which return is required to be filed. The compliance verification is done by the department through scrutiny of returns, audit and/or investigation. Thus, the compliance verification is to be done through documentary checks rather than physical controls. This requires certain obligations to be cast on the taxpayer for keeping and maintaining accounts and records.
Category of person required to maintain the books of account and which place of maintenance of such books of account [section 35(1) read with rule 56 (7) & (10)]
* Section 35(1) of the CGST Act, 2017 provides

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elow shall be maintained by composition taxpayer as well as normal taxpayer under section 9 of CGST act.
* Section 35(1) of the CGST Act, 2017 provides a true and correct account of following to be maintained by the every registered person 
a) production or manufacture of goods;
b) inward and outward supply of goods or services or both;
c) stock of goods;
d) input tax credit availed;
e) output tax payable and paid; and
f) such other particulars as may be prescribed under rule 56(1)
* Every registered person shall keep and maintain, in addition to the particulars mentioned in section 35(1), a true and correct account of
(a) the goods or services imported or exported or 
(b) supplies attracting payment of tax on reverse charge along with the relevant documents, including invoices, bills of supply, delivery challans, credit notes, debit notes, receipt vouchers, payment vouchers and refund vouchers. [Rule 56(1)]
* Records of advance [Rule

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such goods have been supplied by the registered person.
Additional records to be maintained by registered persons ” other than composition dealers”
(i) Stock records [Rule 56(2)]
* Every registered person, other than a person paying tax under section 10, shall maintain the accounts of stock in respect of
* goods received and supplied by him, and
* such accounts shall contain particulars of the
opening balance, receipt, supply, goods lost, stolen, destroyed, written off or disposed of by way of gift or free sample and
the balance of stock including raw materials, finished goods, scrap and wastage thereof.
(ii) Accounts & details of computation of tax [Rule 56(4)]
* Every registered person, other than a person paying tax under section 10, shall keep and maintain an account, containing the details of
* tax payable (including tax payable in accordance with the provisions of section 9(3) and (4),
* tax collected and paid,
* input tax, input tax credit claimed,
* to

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GST ON CONVEYANCE CHARGES
Query (Issue) Started By: – SURYAKANT MITHBAVKAR Dated:- 9-8-2017 Last Reply Date:- 10-8-2017 Goods and Services Tax – GST
Got 5 Replies
GST
Whether GST is applicable on conveyance charges under RCM.
Reply By HimansuSekhar Sha:
The Reply:
If it is a GTA, then RCM is applicable. GTA is defined.
Reply By KASTURI SETHI:
The Reply:
Conveying charges is not GTA. It is like travelling allowance. Not taxable under GST. No question of RCM. However, as expense may be part of transaction value.
Reply By subramanian vijayakumar:
The Reply:
Yes I agree with Sethi sir view
Reply By THYAGARAJAN KALYANASUNDARAM:
The Reply:
Dear sir,
In case the conveyance expenses like auto fare expenses is claim by the em

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how find rate for classification Scheme for Services under GST ?
Query (Issue) Started By: – RameshBabu Kari Dated:- 9-8-2017 Last Reply Date:- 9-8-2017 Goods and Services Tax – GST
Got 2 Replies
GST
Dear Experts,
There is the Classification Scheme for Services under GST was given and to such services, there is no rate was prescribed in that list. For them, how can we find the rate ?
Can we assume as all other services not specified elsewhere in the taxable services and rate shal

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Works Contract
Query (Issue) Started By: – Augustine Pagare Dated:- 9-8-2017 Last Reply Date:- 9-8-2017 Goods and Services Tax – GST
Got 1 Reply
GST
Hello
Innovative Interiors is my Interior Designing and Contracting firm. I would like to know that as i fall in Services, still can i raise Supply of goods Tax Invoce and Labour charges, professional charges ( Designing fees ) seperately????
As off now as per my knowledge providing and fixing which comes under services ( works cont

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GST ON DIRECTORS REMUNERATION
Query (Issue) Started By: – SURYAKANT MITHBAVKAR Dated:- 9-8-2017 Last Reply Date:- 16-8-2017 Goods and Services Tax – GST
Got 7 Replies
GST
If GST is applicable on remuneration paid to Directors by company.
Reply By HimansuSekhar Sha:
The Reply:
Yes, the gstvis applicable
Reply By KIRTIKUMAR PUROHIT:
The Reply:
ON DIRECTORS REMUNERATION THERE IS NO GST APPLICABLE BECAUSE IT IS CONSIDERED AS SALARY AND 16-A FORM ALSO IS TO BE ISSUED, Any other services provide in that case GST applicable.
Reply By HimansuSekhar Sha:
The Reply:
Sir, form 16 & 16A are issued to different personas. 16A is issued for professional services.
I may be corrected if wrong.
Reply By THYAGARAJAN KALYANASUNDARAM:
The

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COMPENSATION CESS : WHAT A MESS
By: – Dr. Sanjiv Agarwal
Goods and Services Tax – GST
Dated:- 9-8-2017

We all know that compensation cess has been introduced in GST with the sole objective of collecting revenue (not tax) in the form of a compensation cess to augment the resources to meet out any tax deficit which may be payable to states in the event of any State having a short fall of tax revenue in GST regime as per agreed formula. The likely hood of such shortfall was also estimated and accordingly compensation rates were decided, notified on select items as per the scheme of law.
All vehicles on which cess was notified, flat rate of 15 percent had been fixed which resulted in all vehicles getting cheaper in final price

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ases, it has come down and such rate fixation had been done with considerable discussions and after a lot of thought process was involved. Government has now have a afterthought that why should the prices be lowered on such items and therefore, come out with an idea that compensation cess should be enhanced from 15% to 25% (by 10%) on select vehicles (luxury and SUVs) so that prices such vehicles do not become cheaper than in the earlier taxation system.
We all know that after GST was introduced w.e.f. 1.7.2017, the overall tax incidence on motor vehicles come down as compared to the pre GST tax regime (see table below):
Segment
Excise
CST
VAT
Infrastructure Cess
Luxury cess
Total pre GST rate
GST
Cess
Effective GST
Change
Two

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whose prices and sales may be impacted may include motor vehicles with 10-13 persons seating capacity, mid segment / large cars, hybrid cars and SUVs.
While GST Council and the Central Government has all powers to do so, there are few questions to be addressed.
It was a Council's decisions taken with full conscience in meeting dated 18 May, 2017 that compensation shall be met as per the cesses decided. Then why to tinker so early only to see that lower prices are not desirable. Tinkering with rates so frequently would result in anarchy and unjust enrichment.
Does it not amount to profiteering on the part of Government which expects taxpayers to be just and fair to customers and has anti profiteering clause in place. Will such a decis

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GST on under construction property
Query (Issue) Started By: – Jitender Kumar Dated:- 9-8-2017 Last Reply Date:- 9-8-2017 Goods and Services Tax – GST
Got 3 Replies
GST
I am Jitender Kumar and stay in Bangalore, recently we have bought a flat in Bangalore on 29th May with the advance payment of 20% of total cost as booking amount. Builder has provided us payment slab with Service Tax as 4.9% which we have to pay every alternate month from August onward.
Since GST is in place now builder is asking us to pay 12% GST on the pending slab though we have booked the flat before July itself rather than 4.9% earlier service tax. This is creating a burden of additional 4 lakhs on us.
I believe that builder should not ask increased tax

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vt also issued circulars to discharge VAT till date of receipt as against the earlier practice of payment of VAT at the time of Registration) on 20% of the Advance amount that you have paid.
With effect from 1st July under GST, Flat sales are taxed @ 12% effective rate, and GST is liable on 80% of your Flat value @ 12%.
However Builders are given seamless credit in GST regime by allowing Input tax credit tax on all the purchases & services that has been received by him. As per Anti profiteer provisions of GST, he should pass on atleast 3-4% of tax reduction to the buyer.
You can question him the same. He may get a discount/reduction of 4% GST.
Reply By Jitender Kumar:
The Reply:
Thansk Vamsi Krishna
Information provided by you really

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Continuation of pre-GST rates of Rebate of State Levies (RoSL) for transition period of three months i.e. 1.7.2017 to 30.9.2017 for Export of Garments and textile made-up articles
34/2017 Dated:- 9-8-2017 Circular
Customs
Circular No. 34/2017-Cus
F.No.609/63/2017-DBK
Government of India
Ministry of Finance
Department of Revenue
(Central Board of Excise and Customs)
Drawback Division
Dated 09th August, 2017
To
Principal Chief Commissioners/Principal Directors General,
Chief Commissioners/Directors General,
Principal Commissioners/Commissioners,
all under CBEC
Madam/Sir,
Subject – Continuation of pre-GST rates of Rebate of State Levies (RoSL) for transition period of three months i.e. 1.7.2017 to 30.9.2017 for Export of

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imed on the basis of revised undertaking to be provided by exporter in terms of aforesaid Notification.
3. For all exports with let export order dates on or after 1.7.2017 for which RoSL is claimed, exporter has to submit the undertaking in the revised format that has been suitably included in the EDI shipping bill w.e.f. 5.8.2017. Considering that exports have already been made in period 1.7.2017 to 4.8.2017, for which the revised undertaking is not possible to be furnished electronically alongwith the shipping bills already filed, exporters need to submit an undertaking to the Customs in the manual format as annexed to this Circular. This could be a single undertaking covering export products in the various shipping bills of the exporter

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is required to be filed by the exporter.
6. Suitable Public Notice and Standing Order should be issued for guidance of the trade and officers. Any difficulty faced should be intimated to the Board.
Encl. as above.
Yours faithfully,
(Dipin Singla)
OSD (Drawback)
Tel 23341480
Annexure
Undertaking for claiming Rebate of State levies rate w.e.f 1.7.2017 to 30.9.2017
I/We, M/s………………………………, IEC No………………… and address ……………………. hereby give an undertaking that in respect of export products covered under Shipping Bill Nos…………………. dated …………… on which Rebate of State Levies (RoSL) rate is claimed, I have not claimed or shall not claim credit/rebate/refund/reimburse

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Procedure for grant of self-sealing permission to the exporters in GST regime consequent to CBEC Circular no 26/2017-customts dated 01.07.2017
FACILITY CIRCULAR NO. 13/2017 Dated:- 9-8-2017 Trade Notice
Customs
GOVT. OF INDIA
MINISTRY OF FINANCE
DEPARTMENT OF REVENUE
Phone: 044-25254461
Fax: 044-25249543
CUSTOM HOUSE, CHENNAI – 600 001
www.chenneicustoms.gov.in
FACILITY CIRCULAR NO. 13/2017
Sub: Procedure for grant of self-sealing permission to the exporters in GST regime consequent to CBEC Circular no 26/2017-customts dated 01.07.2017- Reg.
Attention of the Importers, Exporters, General Trade, Port Trust, Customs Brokers, Port Terminal Operators, Shipping Lines / Shipping Agents, Container Freight Stations (CFSs) / Inland Container Depots (ICDs) of Chennai Customs Zone is invited to the Board Circular No. 26/2017-Cus dated 01.07.2017 on the above subject.
2. Board has in the past issued various circulars both on the Excise and Customs side on the issue of sealing o

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ers with export goods by CBEC officials Instead, self sealing procedure shall be followed subject to conditions.
4. In this regard, the procedure for seeking self-sealing permission of export containers is prescribed as follows:
4.1 The exporter shall:-
4.1.1 inform the Superintendent of Customs (Docks Administration) of this office about their arrangement to follow self-sealing procedure to export goods from the factory premises or warehouse at least 15 days before the first planned export along with necessary information as per format enclosed as Annexure – 'A',
4.1.2 be registered under the GST and should be filing GSTR 1 and GSTR 2.
4.1.3 submit therewith a list of persons, along with their specimen signatures (maximum three), who are authorized on behalf of the exporter to do the self sealing and self-certification as per format enclosed as Annexure – “B”
4.1.4 submit copies of their identity proof (with photograph) and proof of address of each individual authorized

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consider granting permission of self sealing of export containers at the required premises.
7. Self Sealing permission once given by a Principal Commissioner/ Commissioner of Customs shall be valid for export at all the customs stations.
8. Subsequently, the exporter shall intimate the shipment/ self-sealing particulars to the Superintendent of Customs (Docks Administration) one day in advance to the planned stuffing as per the format enclosed as Annexure “D”. The intimation, in this regard shall clearly mention the place and address of the approved premises, description of export goods and whether or not any incentive is being claimed.
9. The self-sealed containers shall be brought by the exporter to any of the Container Freight Stations under the jurisdictional of Chennai Customs Zone, along with the Check-list of the Shipping Bill, Packing List, Invoice, duly filled in ANNEXURE-C and any Other required relevant document for further processing by Customs, including seal verificat

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sealing procedure even if he is not required to be registered under GST Laws. Such an exception is available to the Status Holders recognized by DGFT under a valid status holder certificate issued in this regard.
13. The exporter intending to clear export goods on self-clearance (without employing a Customs Broker) shall file the Shipping Bill under digital signature.
14. All consignments in self-sealed containers shall be subject to risk based criteria and intelligence, if any, for examination / inspection at the port of export. At the port/ICD as the case may be, the Customs Officer would verify the integrity of the seals to check for tampering if any enroute. However, random or intelligence based selection of such containers for examination/scanning would continue.
15. Examination norms as prescribed under Circular No.6/2002-Cus., dated 23.01.2002 (as amended) shall be applicable for all such consignments.
16. It is proposed to replace the bottle seals with Electronic seals. The

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g in force, will be viewed seriously which may result in withdrawal of the self-sealing facility accorded to the exporter and / or initiation of any other proceedings under the Customs Act, 1962 and rules and regulations made there under or any other laws for the time being in force.
19. Self sealing / factory stuffing permissions already granted by the Deputy/ Assistant Commissioner of Docks, Chennai Customs, for the premises falling under the jurisdiction of this Custom House, after issue of Facility Circular 11/2011 dated 02.06.2011, earlier will continue to be valid. In other words there is no need for the said exporter who have already been granted permission for self-sealing/factory stuffing under the Old guidelines, (i.e., Facility Circular No.11/2011 dated 02.06.2011), to apply again.
20. The above said revised procedure regarding sealing of export containers shall be effective from 01.09.2017. All concerned, are requested to complete the formalities required to avail the abo

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