Goods and Services Tax

Goods and Services Tax – Started By: – ajit tiwary – Dated:- 1-10-2018 Last Replied Date:- 2-10-2018 – Dear all,We all know TDS has been implemented under gst. My query is I have a client who runs his business in same state at four different location and taken one GST number now the question arises that whether they require only one registration or four different registration for deduction of TDS under gst. All the return like gate 3b and gate 1 have been filed as consolidated basis. Please suggestThanking youYour faithfully – Reply By DR.MARIAPPAN GOVINDARAJAN – The Reply = In my view your client is to take registration for each State. – Reply By Yash Jain – The Reply = Dear Sir, As per Sec 51 at present the TDS Deduction obligation is re

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Goods and Services Tax – Modification to the Guidelines for Deductions and Deposits of TDS by the DDO under GST as clarified in Circular No. 65/39/2018-DOR dated 14.09.2018 – reg – TMI Updates – Highlights

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Goods and Services Tax – GST – Dated:- 1-10-2018 – GST Revenue collection for September 2018 crossed ₹ 94,000 crore Revenues collected in September shows an upward trend as compared to August, 2018 The total gross GST revenue collected in the month of September, 2018 is ₹ 94,442 crore of which CGST is ₹ 15,318 crore, SGST is ₹ 21,061 crore, IGST is ₹ 50,070 crore (including ₹ 25,308 crore collected on imports) and Cess is ₹ 7,993 crore (including &#8377

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2018 (11) TMI 1501 – RAJASTHAN HIGH COURT – TMI – Maintainability of petition – appealable order – imposing tax liability and interest upon the petitioner in the proceedings under Section 129 (3) of the Rajasthan/Central Goods and Service Tax Act, 2017 – Section 107 of the Rajasthan/Central Goods and Service Tax Act, 2017.
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Held that:- The order impugned is appealable under Section 107 of the Act of 2017 – this Court is not inclined to entertain the present writ petition. It will be, howev

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2018 (11) TMI 748 – CESTAT CHENNAI – TMI – Condonation of delay in filing appeal – Renting of immovable property service – non-payment of Service Tax – Held that:- The appellant filed appeal before Commissioner (Appeals) only on 26.11.2014. Both the appeals were filed before the Commissioner (Appeals) after the condonable period of 90 days. The Commissioner (Appeals) has dismissed the appeals observing that the appeals were filed after the condonable period provided in the law – appeal dismissed. – Appeal Nos. ST/42570/2014 and ST/40505/2015 – Final Order Nos. 42526-42527/2018 – Dated:- 1-10-2018 – Ms. Sulekha Beevi C.S., Member (Judicial) And Shri Madhu Mohan Damodhar, Member (Technical) Shri M. Muthukumar, Consultant for the Appellant Sh

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ltant reiterated the grounds of appeals and pleaded that a lenient view may be taken. 4. The ld. ARs for Revenue supported the findings in the impugned order. 5. Heard both sides. 6. In Appeal No. ST/42570/2014, the Order-in-Original is dated 28.3.2013 and was received by the appellant on 8.4.2013. The appellant filed appeal before Commissioner (Appeals) only on 24.7.2013. In Appeal No. ST/40505/2015, the Order-in-Original is dated 18.7.2014.3.2013 and was received by the appellant on 23.7.2014. The appellant filed appeal before Commissioner (Appeals) only on 26.11.2014. Both the appeals were filed before the Commissioner (Appeals) after the condonable period of 90 days. The Commissioner (Appeals) has dismissed the appeals observing that th

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2018 (11) TMI 747 – CESTAT CHENNAI – TMI – Penalty – renting of immovable property service – waiver of penalty sought on the ground that during the period the issue was under confusion – Held that:- The issue whether renting of immovable property is subject to levy of service tax was under litigation during the disputed period and there were litigations filed by the tenants pending before the various High Courts. The issue is still pending before the Hon’ble Supreme Court as per the decisions cited by ld. counsel for the appellant – the penalties imposed cannot sustain and requires to be set aside.
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The matter is remanded to the adjudicating authority to reconsider the issues – appeal allowed in part and part matter on remand. – Appeal No. ST/40586/2015 – Final Order No. 42525/2018 – Dated:- 1-10-2018 – Ms. Sulekha Beevi C.S., Member (Judicial) And Shri Madhu Mohan Damodhar, Member (Technical) Ms. S. Sridevi, Advocate for the Appellant Shri B. Balamurugan, AC (AR) for the Respond

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enalties may be waived invoking Section 80 of the Finance Act, 1994 for the reason that during the said period the issue whether renting of immovable property was subject to levy of service tax was under much confusion and there were litigations pending before the Hon ble Delhi High Court. The issue is still pending before the Hon ble Supreme Court in the case of Union of India Vs. UTV News Ltd. reported in 2018 (13) GSTL 3 (SC) as well as Mineral Area Development Authority and Others Vs. SAIL – (2011) 4 SCC 450. 3. The ld. AR Shri B. Balamurugan supported the findings in the impugned order. He submitted that there are no grounds to interfere in the impugned order. 4. Heard both sides. 5. On perusal of the impugned order as well as the submissions made by the appellant, it is brought out that the appellant had put forward cum-tax benefit and the same has not been considered by the authorities below stating that the appellant has not furnished evidence. That the appellant is ready to fu

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of service tax was under litigation during the disputed period and there were litigations filed by the tenants pending before the various High Courts. The issue is still pending before the Hon ble Supreme Court as per the decisions cited by ld. counsel for the appellant. We also find that in the case of Krishi Upaj Mandi Samiti Vs. Commissioner -2018 (13) GSTL J97 (SC), the matter is still pending before the Hon ble Supreme Court. For these reasons, we find that the penalties imposed cannot sustain and requires to be set aside. Thus the penalties imposed under sections 77 and 78 of the Finance Act,1994 are set aside and impugned order is modified to the extent of setting aside the penalties imposed. The matter is remanded to the adjudicating authority to reconsider the issues discussed above. 6. In the result, the appeal is partly allowed and partly remanded in the above terms. (Dictated and pronounced in open court) – Case laws – Decisions – Judgements – Orders – Tax Management Ind

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Extension of time limit for submitting the declaration in FORM GST TRAN-I under rule 117(1A) of the Madhya Pradesh Goods and Service Tax Rules, 2017 in certain cases – GST – States – Order No 05-2018 28-17-24(B)-I-GST-298 – Dated:- 1-10-2018 – Office of the Commissioner, Commercial Tax, Madhya Pradesh, Indore No. 28/17/24(B)-I-GST-298 Indore: 01/10/2018 Order No. 05/2018 Subject: Extension of time limit for submitting the declaration in FORM GST TRAN-1 under rule 117(1A) of the Madhya Pradesh Go

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2018 (10) TMI 657 – CESTAT HYDERABAD – TMI – Refund claim – service tax paid on CHA Services – expenses incurred by the appellant beyond the place of removal – Case of Revenue that CHA expenses incurred were not in accordance with notification No. 41/2012-ST, dated 29.06.2012 as the CHA expenses were incurred before the place of removal and not after the place of removal and hence the appellant is not eligible for refund.
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Held that:- The amendment to the statutory provisions, vide Finance Act, 2016, has finally put the dispute to rest – Amendment of notification issued under section 93A of Finance Act, 1994 has clarified that refund on such services allowed – refund allowed – appeal allowed – decided in favor of appellant. – ST/30775/2018 – A/31252/201 – Dated:- 1-10-2018 – Mr. P.K. Choudhary, MEMBER (JUDICIAL) For the Appellant : Shri P. Venkat Prasad, Advocate For the Respondent : Shri A.V.L.N. Chary, Superintendent /AR ORDER PER: MR. P.K. CHOUDHARY 1. The facts of the case in

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he latest notification No. 1/2016-ST, dated 03.02.2016, wherein, a new clause has been substituted. It is his submission that the amended notification is very much clear that the input services can be availed within the factory premises or it can be used beyond the place of factory etc. He further submits that notification No. 01/2016-ST (supra) is applicable retrospectively i.e. w.e.f. 01.07.2012 and therefore the appellant is eligible for rebate. 3. Ld. DR reiterates the findings of the lower appellate authority. 4. Heard both sides and perused the appeal records. 5. On perusal of records, I find that the period of dispute is from January 2014 to October 2014. The appellant has claimed refund of service tax paid in respect of the services availed from their Custom House Agents. These services have been utilised for export of their goods viz; Black Galaxy Cutter Slabs, Black Galaxy Polished Granite Slabs. The Asst. Commissioner/Refund Sanctioning Authority had sanctioned the amount. T

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and shall be deemed to have been amended retrospectively, in the manner specified in column (2) of the Tenth Schedule, on and from and up to the corresponding dates specified in column (3) of the Schedule, and accordingly, any action taken or anything done or purported to have taken or done under the said notification as so amended, shall be deemed to be, and always to have been, for all purposes, as validly and effectively taken or done as if the said notification as amended by this sub-section had been in force at all material times. (2) Rebate of all such service tax shall be granted which has been denied, but which would not have been so denied had the amendment made by sub-section (1) been in force at all material times. (3) Notwithstanding anything contained in the Finance Act, 1994 (32 of 1994), an application for 2 the claim of rebate of service tax under sub-section (2) shall be made within the period of one month from the date of commencement of the Finance Act, 2016. Statuto

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2018 (10) TMI 561 – CESTAT CHENNAI – TMI – Cum-tax benefit – case of appellant is that they had not collected the service tax and therefore they have to be given cum-tax benefit – abatement for property tax under N/N. 24/2007-ST dated 22.5.2007 – Held that:- It is brought out that the appellant had put forward cum-tax benefit and the same has not been considered by the authorities below stating that the appellant has not furnished evidence. The ld. counsel has submitted that though necessary documents / bills were produced before the adjudicating authority, the same was not considered. That the appellant is ready to furnish the necessary documents again if a chance is given to them – the issue whether the appellant is eligible for cum-tax benefit requires to be remanded to the adjudicating authority for fresh consideration.
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Benefit of SSI exemption under N/N. 6/2005-ST dated 1.3.2005 – Held that:- This aspect also requires reconsideration by the adjudicating authority.
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It

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d by the adjudicating authority and upheld by the Commissioner (Appeals) in the impugned order. 2. On behalf of the appellant, ld. counsel Shri S.Kannappan submitted that the appellant is not contesting the liability to pay service tax under renting of immovable property service. The period involved is from1.6.2007 to 30.9.2011. He submitted that for the first year of the disputed period (1.6.2007 to 31.3.2008), the appellants would be eligible for exemption of ₹ 8 lakhs as per Notification No. 6/2005-ST dated 1.3.2005. It is also submitted by him that the appellant had not collected the service tax and therefore they have to be given cum-tax benefit. Even though this plea was put before the authorities below, the same was not considered. Further, that the abatement for property tax under Notification No.24/2007-ST dated 22.5.2007 has not been given to the appellants. The ld. counsel pleaded that the penalties may be waived invoking Section 80 of the Finance Act, 1994 for the rea

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, the same was not considered. That the appellant is ready to furnish the necessary documents again if a chance is given to them. Taking these submissions into consideration, we are of the view that the issue whether the appellant is eligible for cum-tax benefit requires to be remanded to the adjudicating authority for fresh consideration. 5.1 The counsel has also pointed out that for the first year of the disputed period (1.6.2007 to 31.3.2008), the appellant would be eligible for exemption of ₹ 8 lakhs as per Notification No. 6/2005-ST dated 1.3.2005. This aspect also requires reconsideration by the adjudicating authority. Further, it is also seen from the records that the appellant has not been given the abatement for the property tax under Notification No.24/2007-ST dated 22.5.2007. The adjudicating authority shall also consider this plea of the appellant if sufficient proof is adduced by the appellant. 5.2 The ld. counsel has prayed for waiver of penalties. On perusal of rec

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2018 (10) TMI 319 – BOMBAY HIGH COURT – TMI – CENVAT Credit – output service not provided – Whether the service tax paid on inputs such as electricity transmission structure etc., could be utilized to pay service tax on output service, when the Assessee had not provided any output service?
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Held that:- It is an undisputed fact that the Respondent herein, was granted registration by the Appellant to pay service tax on the broadcasting services being provided by it. Respondent had admittedly discharged the tax on the output services through their office in India – If the contention of the Appellant-Revenue is to be accepted, then the payment made on output service is not payment of service tax, then in such a case, the credit taken stands reversed by payment made on output service.
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The question of law, as proposed, does not give rise in the present facts to any substantial question of law. Thus, not entertained.
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Appeal dismissed. – CENTRAL EXCISE APPEAL NO. 243 OF 2017

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ed under the Finance Act, 1994 for providing taxable output services namely – Broadcasting Services. The Respondent has been availing Cenvat Credit under the Cenvat Credit Rules 2004 in respect of its inputs services used for providing broadcasting services. The Respondent has been paying service tax on the broadcasting services as its output services, inter alia, utilizing the Cenvat Credit paid on the inputs services/goods. 5. Revenue was of the view that the Respondent was not providing any output service in India during the period July, 2012 to March, 2014. Thus, on 30th January, 2015, a show cause notice was issued to the Respondent, seeking to deny Cenvat Credit for the period July, 2012 to March, 2014 as it did not provide any output service in India. 6. The Respondent by its reply dated 20th March, 2015 resisted its show cause notice. However, the Commissioner of Service Tax by an order dated 28th August, 2015 confirmed the show cause notice. This, on the ground that the Respon

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e is to be accepted, then the payment made on output service is not payment of service tax, then in such a case, the credit taken stands reversed by payment made on output service. In support, reliance was placed upon the decision of the its Coordinate Bench in Infosys Technologies Ltd. V/s. Commissioner of Central Excise, Pune-I 2017 (47) STR 24. Thus, allowed the appeal. 8 We note that the impugned order dated 31st March, 2017 of the Tribunal, inter alia, placed reliance upon the following observations of its Coordinate Bench in the case of Infosys Technologies Ltd. (supra), wherein it was held, as under: …. …. …. …. …. …. …. …. Registration under the scheme of Finance Act, 1994 is the acknowledgment of having transacted in a 'taxable service', should such a registrant keep itself out of the purview of the tax net, the obligation to determine liability to tax shifts tot he 'proper officer'. Having registered itse

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application to the fact of the present case, as it dealt with refund application filed by the Infosys Technologies Ltd., (supra) while in this case, is a demand case, seeking reversal of the Credit. The distinction sought to be made by the Revenue, is in our view, of no consequence. The substance of the issue is entitlement to take Cenvat Credit on the inputs services, when admittedly the tax on the output services has been collected by the Revenue. 10. Therefore, once the Revenue has accepted the order of the Tribunal in the case of Infosys Technologies Ltd. (supra), the distinction pointed out by the Revenue of Infosys Technologies Ltd., (supra), being a case of refund and this a case of demand, is held by us a distinction of no consequence, to decide the issue at hand. 11. Therefore, the question of law, as proposed, does not give rise in the present facts to any substantial question of law. Thus, not entertained. 12. Accordingly, Appeal dismissed. No order as to costs. – Case la

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2018 (10) TMI 317 – MADRAS HIGH COURT – TMI – Maintainability of appeal – statutory appellate remedy before the Commissioner of Customs and Central Excise, Appeals-1, Coimbatore – classification of capacitor box/control panel under chapter heading 8537 of the Schedule to the Central Excise Tariff Act, 1985, read with Section-174 of the Central Goods and Services Tax Act, 2017 – Held that:- This Court is not inclined to entertain the present writ petition on the sole reason that the petitioner has to avail the alternative remedy of appeal – this writ petition is disposed of, without expressing any view on the merits of the matter, with liberty to the petitioner to file such appeal, by complying with other statutory requirements, within a period of two weeks from the date of receipt of a copy of this order. – W.P.No.25417 of 2018 And W.M.P.Nos.29578 & 29579 of 2018 Dated:- 1-10-2018 – Mr. K. Ravichandrabaabu J. For the Petitioner : Mr.Raghavan Ramabadran For the Respondents : Mr.A.P.Sr

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Tax Act, 2017. 5. There is no dispute to the fact that before passing the impugned order, the petitioner was served with show cause notice, who in turn filed its reply to the same. Perusal of the impugned order would show that the Adjudicating Authority has considered the merits of the matter in detail and arrived at such conclusion. The contentions raised by the petitioner on merits of the matter, as well as the correctness or otherwise of the order passed by the Adjudicating Authority, impugned in this writ petition, cannot be gone into at this stage by this Court, for giving any view on the same for the simple reason, that as against the said order, the petitioner is having a statutory appellate remedy before the Commissioner of Customs and Central Excise, Appeals-1, Coimbatore, as evident from the impugned order itself. 6. Needless to say that when such statutory appellate remedy is available as against the order in original, it is for the petitioner to approach such authority and

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ider and direct the Appellate Authority to entertain the appeal and decide the same on merits. 8. Considering the fact that this Court is not inclined to entertain the present writ petition on the sole reason that the petitioner has to avail the alternative remedy of appeal as stated supra, this writ petition is disposed of, without expressing any view on the merits of the matter, with liberty to the petitioner to file such appeal, by complying with other statutory requirements, within a period of two weeks from the date of receipt of a copy of this order. If any such appeal is filed before the concerned Appellate Authority within the time stipulated as stated supra, the same shall be considered and orders will be passed on merits and in accordance with law, without reference to the period of limitation. No costs. Consequently, the connected miscellaneous petitions are closed. – Case laws – Decisions – Judgements – Orders – Tax Management India – taxmanagementindia – taxmanagement –

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2018 (10) TMI 255 – BOMBAY HIGH COURT – TMI – Filing of Trans-I form – migration to gst regime – transitional provisions – transitional credit – Held that:- The Petitioner states that they have received a communication from the Respondent that the issue raised by the Petitioner herein, has been resolved. However, on instructions, Mr. Raichandani, learned Counsel states that while seeking to act in terms of directions received by them from the Respondent, they are facing some difficulties and, therefore, seeks time to resolve this issue with the assistance of the Respondent, before the next date – Petition is adjourned to 8th October, 2018. – WRIT PETITION NO. 5410 OF 2018 Dated:- 1-10-2018 – M.S. SANKLECHA & RIYAZ I. CHAGLA, JJ. Mr. B

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Goods and Services Tax – Started By: – Ankit Gangrade – Dated:- 29-9-2018 Last Replied Date:- 11-10-2018 – While claimng Refund of unutilised input tax credit on zero rated supplies ,Can we take refund of input tax credit on those input services which are capitalised with the value of capital goods in books of accounts? – Reply By Yash Jain – The Reply = Dear Sir, Yes, we can take input for those input services which have been capitalized in the books of account, only with condition that the Input Should not have been capitalized. Reason : When we fill Form GSTR 3B, the refund amount in RFD-01 is autopopulated from the said form. Hence yes, ITC can be applied for refund, only if the said input is not capitalized. Comments from esteemed members highly solicited – Reply By Ankit Gangrade – The Reply = As per my opinion, Refund of unutilised ITC on same input services not available because this service is input services for capital goods completion, not for export material – Reply By Yas

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goods also , cannot be utilized for discharge for GST Liability for Domestic sales, and hence should lapse. Hence considering aforesaid, we can easily take ITC Refund for Capital Goods. Comments from esteemed members highly solicited. – Reply By Nitika Aggarwal – The Reply = Dear Sir, In my humble opinion, keeping in view the provisions of section 54 of CGST Act, 2017 read with rule 89 of CGST Rules, 2017, refund can be claimed only in respect of input and input services which are used for making such zero-rated supplies of goods or services or both but not in respect of capital goods. Regards Nitika Aggarwal 9999804960 – Reply By Yash Jain – The Reply = Dear Sir/Madam, Reproducing herewith the Rule 89 (Relevant Clauses Only – as such) and as under, 89(3) Where the application relates to refund of input tax credit, the electronic credit ledger shall be debited by the applicant by an amount equal to the refund so claimed. 89(4) In the case of zero-rated supply of goods or services or bo

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undertaking; Hence were it is categorically stated that Input is only in respect of Input other than capital Goods?. Then what will happen to input of capital Goods as the full CGST Act does not impose any restrictions. Comments from other members highly solicited. – Reply By Pavan Mahulkar – The Reply = Dear Yash Jain Sir, We can't presume Inputs as Capital Asset Please refer definition of INPUT as per section 2 of CGST Act (59) input means any goods other than capital goods used or intended to be used by a supplier in the course or furtherance of business; – Reply By Nitika Aggarwal – The Reply = I have the same view as inscripted by Mr. Pavan Mahulkar.The Government is going to give benefit only in respect of those input and input services which are used in the course or furtherance of Zero-rated supply not other than that.Nitika Aggarwal9999804960 – Reply By Yash Jain – The Reply = Dear Pavan Sir Ji/ Nikita Ji, Sir/Madam, first of all we are applying for Refund of Input tax Cre

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Goods and Services Tax – Classification of Supply – supply of goods or services – Levy of GST – Supply of printed question papers for various examinations conducted by the Government/Government aided

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Goods and Services Tax – Input Tax Credit – stock transfer from the Head Office to its branches in other States at Zero Value – optical lenses and frames for spectacles and accessories. – if the value

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Goods and Services Tax – Release of seized goods with vehicle – incorrect E-way bill – Surprisingly, neither the mobile squad authority nor the appellate authority appreciated the claim of the petitio

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VAT and Sales Tax – Validity of VAT assessment after introductions of GST – Assessment after the amendment to the Constitution by virtue of which Article 246A was inserted – Notices issued. – TMI Updates – Highlights

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Goods and Services Tax – Anti-Profiteering – benefit of reduction in the rate of GST in restaurant service – purchase of 6 Hara Bhara Kabab Sub – base price of the product increased from ₹ 130/-

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Goods and Services Tax – GST – Dated:- 29-9-2018 – Frequently Asked Questions on TCS Sr. no. Question Answer 1. What is Electronic Commerce? As per Section 2(44) of the CGST Act, 2017, electronic Commerce means the supply of goods or services or both, including digital products over digital or electronic network. 2. Who is an e-commerce operator? As per Section 2(45) of the CGST Act, 2017, electronic Commerce operator means any person who owns, operates or manages digital or electronic facility or platform for electronic commerce. 3. What is Tax Collection at Source (TCS)? As per Section 52 of the CGST Act, 2017 the e-commerce operator, not being an agent, is required to collect an amount calculated at the rate not exceeding one per cent., as notified by the Government on the recommendations of the Council, of the net value of taxable supplies made through it, where the consideration with respect to such supplies is to be collected by such operator. The amount so collected is called a

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made by him. However, a person supplying services, other than supplier of services under section 9 (5) of the CGST Act, 2017, through an e-commerce platform are exempted from obtaining compulsory registration provided their aggregate turnover does not exceed INR 20 lakhs (or INR 10 lakhs in case of specified special category States) in a financial year. Government has issued the notification No. 65/2017 – Central Tax dated 15th November, 2017 in this regard. 7. Whether e-Commerce operator is required to obtain registration in every State/UT in which suppliers listed on their e-commerce platform are located to undertake the necessary compliance as mandated under the law? As per the extant law, registration for TCS would be required in each State / UT as the obligation for collecting TCS would be there for every intra-State or inter-State supply. In order to facilitate the obtaining of registration in each State / UT, the e-commerce operator may declare the Head Office as its place of b

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ration for TCS irrespective of the fact whether e-Commerce operator is already registered under GST as a supplier or otherwise and has GSTIN. 10. What is meant by net value of taxable supplies ? The net value of taxable supplies means the aggregate value of taxable supplies of goods or services or both, other than the services on which entire tax is payable by the e-commerce operator, made during any month by a registered supplier through such operator reduced by the aggregate value of taxable supplies returned to such supplier during the said month. 11. Whether value of net taxable supplies to be calculated at gross level or at GSTIN level? The value of net taxable supplies is calculated at GSTIN level. 12. Is every e-commerce operator required to collect tax on behalf of actual supplier? Yes, every e-commerce operator is required to collect tax where the supplier is supplying goods or services through e-commerce operator and consideration with respect to the supply is to be collected

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e collected in respect of supplies made by the composition taxpayer? As per section 10(2)(d) of the CGST Act, 2017, a composition taxpayer cannot make supplies through e-commerce operator. Thus, question of collecting TCS in respect of supplies made by the composition taxpayer does not arise. 17. Whether TCS is to be collected on import of goods or services or both? TCS is not liable to be collected on any supplies on which the recipient is required to pay tax on reverse charge basis. As far as import of goods is concerned since same would fall within the domain of Customs Act, 1962, it would be outside the purview of TCS. Thus, TCS is not liable to be collected on import of goods or services. 18. Is there any exemption on Gold, owing to the fact that rate of GST is only 3% and TCS on it would erode the margin for the seller? No such exemption from TCS has been granted. 19. Whether payment of TCS through Input Tax Credit of operator for depositing TCS as per Section 52 (3) of the CGST

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mount be reported? Negative amount cannot be declared. There will be no impact in next tax period also. In other words, if returns are more than the supplies made during any tax period, the same would be ignored in current as well as future tax period(s). 22. What is the time within which such TCS is to be remitted by the e-commerce operator to the Government account? The amount collected by the operator is to be paid to appropriate government within 10 days after the end of the month in which the said amount was so collected. 23. How can actual suppliers claim credit of TCS? The amount of TCS deposited by the operator with the appropriate Government will be reflected in the electronic cash ledger of the actual registered supplier (on whose account such collection has been made) on the basis of the statement filed by the operator in FORM GSTR-8 in terms of Rule 67 of the CGST Rules, 2017. The said credit can be used at the time of discharge of tax liability by the actual supplier. 24.

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ement, electronically, containing the details of outward supplies of goods or services effected through it, including the supplies of goods or services returned through it, and the amount collected by it as TCS during a month within 10 days after the end of such month in FORM GSTR-8. The operator is also required to file an annual statement by 31st day of December following the end of the financial year in which the tax was collected in FORM GSTR-9B. 26. Whether interest would be applicable on non-collection of TCS? As per section 52(6) of the CGST Act, 2017, interest is applicable on omission as well in case of incorrect particulars noticed. In such a case, interest is applicable since it is a case of omission. Further penalty under section 122(vi) of the CGST Act, 2017 would also be leviable. 27. What will be the place of supply for e-commerce operator for recharge of talk time of the Telecom Operator / recharge of DTH / in relation to convenience fee charged from the customers on bo

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Standard Operating Procedure on TDS under GST – Goods and Services Tax – GST – Dated:- 29-9-2018 – PDF DOWNLOAD – News – Press release

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Goods and Services Tax – Started By: – ROHIT GOEL – Dated:- 29-9-2018 Last Replied Date:- 30-10-2018 – One of our client is engaged in providing GTA services to companies on which GST has been paid by such companies under reverse charge mechanism. Our client is taking truck services from other transporters and paying freight to such transporters but no reverse charge has been paid on such amount as input of GST is not available to the client.Is it the correct view or we have to deposit GST on amount of freight paid… – Reply By Sanjeev Arora – The Reply = जी सर – Reply By SHIVKUMAR SHARMA – The Reply = Yes,Your Client has to pay GST on Freight paid to Transporter under RCM whether ITC on Freight available or not –

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Goods and Services Tax – GST – Dated:- 29-9-2018 – During the 30th Meeting of the GST Council held here yesterday, the proposal of the State of Kerala for imposition of Cess on SGST for rehabilitation and flood affected works was discussed in detail. The Council decided to constitute a 7-Member Group of Ministers (GoM) to examine this issue in depth. Accordingly, the Union Finance Minister, Shri Arun Jaitley, has approved the constitution of a Group of Ministers yesterday (28th September, 2018)

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Goods and Services Tax – GST – By: – Dr. Sanjiv Agarwal – Dated:- 29-9-2018 Last Replied Date:- 15-11-2018 – Recent Advance Ruling on Taxability under GST The issue of whether: Whether beer bearing brand/s owned by M/s United Breweries Limited (Brand Owner/UBL) manufactured by Contract Brewing Units (CBUs) out of the raw materials, packaging materials and other input materials procured by it and accounted by it and thereafter selling such beer to various parties under its invoicing would be considered as supply of services and whether GST is payable by the CBUs on the profit earned out of such manufacturing activity? and Whether GST is payable by the Brand owner on the Surplus Profit transferred by the CBU to the Brand Owner out of such manufacturing activity? recently came up before Authority for Advance Rulings, Karnataka on the application of M/s United Breweries Ltd. [ 2018 (7) TMI 835 – AUTHORITY FOR ADVANCE RULINGS, KARNATAKA ]. According to the facts, the Applicant was engaged

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d by the CBUs. Besides this the CBUs retain the manufacturing cost, the manufacturing and distribution overheads and its portion of net profit. The balance of the sale proceeds, after the CBUs have apportioned part of the proceeds as enumerated above to themselves, is transferred to UBL as surplus/profit earned by the brand owner. The contract manufacturing arrangement empowers the CBUs to use the brand name of UBL for the limited purpose of facilitating manufacture of UBL owned brands of beer by the CBUs and this usage is in accordance with Section 48(2) of Trademark Act. The scheme of the agreements provides that UBL would provide the technical knowhow to the breweries, including close supervision of procuring and manufacturing processes, and the breweries in turn would endeavour to manufacture beer of the requisite standards and sell the same as regulated by the State laws. The revenue sharing agreement stipulates that apart from the cost of the raw material, cost related to energy

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The CBUs further account for the manufacturing cost and distribution overheads in their books of account as they had procured all the resources for the manufacture of the beer. Further they also retain a certain amount of profit. After accounting all these revenues the CBUs transfer the balance amount to the applicant. The point to be determined here is whether the CBUs are supplying any service to the applicant by undertaking to manufacture beer according to their specifications thereby rendering them liable to pay GST on the profit earned by them by virtue of supply of service to the applicant. The CBUs undertake the manufacture of goods for or on behalf of the applicant, apparently in the nature of a job work. 'Job work' is defined under Section 2 (68) of the CGST Act, 2017 and Section 2(68) of the KSGST Act, 2017 as follows: Job work means any treatment or process undertaken by a person on goods belonging to another registered person and the expression job worker shall be

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eadings. Services related to manufacture appear in Section 8 under Heading 9988. The Notification No. 11/2017-Central Tax (Rate) dated 28.06.2017 at serial number 26, also requires that Heading 9988 is applicable when the physical inputs are owned by person other than the manufacturer. Further Heading 9989 also provides for classification of other manufacturing services apart from those under Heading 9988. There are four groups of services under heading 9989, ranging from group 99891 to 99894. The manufacturing activity undertaken by the CBUs does not appear in any of the services listed in the aforesaid groups from 99891 to 99894. It was evident that the manufacturing activity carried out by the CBUs does not fall under the Heading 9989. In order that a manufacturing activity be covered under Heading 9988, it is necessary that the goods worked upon should be supplied by a registered person to the manufacturer. Therefore, to determine whether the activity undertaken by the CBUs falls u

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ex-factory price. All these clauses indicate that the ownership of the raw material required to manufacture beer rests with the manufacturer and not with the applicant. Therefore, the applicant had not supplied any goods used in the manufacturing activity undertaken by the CBUs. Consequently, the manufacturing activity undertaken by the CBUs does not qualify classification under Heading 9988. As a result the CBUs are not engaged in supply of any service to the applicant. In view of this factual matrix, AAR concluded that the CBUs are not engaged in supply of service to the applicant and therefore there does not arise any liability to pay GST on the amount retained by the CBUs as their profit. On the question of taxing on the surplus profit transferred by the CBU to the brand owner arising out of manufacturing activity, it was observed that the applicant enters into a business agreement with the CBUs in the nature of a principal to principal arrangement. This arrangement calls upon the

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as at serial number 35 of the Notification. It was ruled that GST is payable by the Brand owner (UBL) on 'Surplus Profit transferred by the CBU to brand owner out of the manufacturing activity and the supply of service to the CBUs is classified under Service Code (Tariff) 999799 and liable to pay GST at 18% ( CGST-9%, SGST-9%) on the amount received from the CBUs. – Reply By Prasanna Kumar – The Reply = The issues were dealt by you in your article NO GST ON CONTRACTUAL LIQUOR BOTTLING (PART-1).Since the manufacturing of beer doesnot fit into the definition of Job work under GST laws, the authorities cannot levy GST on this activity. RulingIt was ruled that since the applicant is engaged in supply of service and the service does not find mention at any other entry in the Classification table it has to be placed in the residual entry. The applicable rate of Central Tax is as at serial number 35 of the Notification.It was ruled that GST is payable by the Brand owner (UBL) on 'Sur

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GST – States – F.A-3-31-2018-1-V-(84) – Dated:- 29-9-2018 – Commercial Tax Department Mantralaya, Vallabh Bhawan, Bhopal Bhopal, Dated 29th September, 2018 No. F.A-3-31-2018-1-V-(84).-In exercise of the powers conferred by section 164 of the Madhya Pradesh Goods and Services Tax Act, 2017 (19 of 2017), the State Government hereby makes the following rules further to amend the Madhya Pradesh Goods and Services Tax Rules, 2017, namely:- AMENDMENTS They shall come into force on the date of their publication in the Official Gazette. 2. In the Madhya Pradesh Goods and Services Tax Rules, 2017, (i) in rule 117, (a) after sub-rule (1), the following sub-rule shall be inserted, namely:- (1A) Notwithstanding anything contained in sub-rule (1), the

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GST – States – F.A-3-33-2018-1-V-(88) – Dated:- 29-9-2018 – Commercial Tax Department Mantralaya, Vallabh Bhawan, Bhopal Bhopal, Dated 29th September, 2018 No. F.A-3-33-2018-1-V-(88).-In exercise of the powers conferred by section 164 of the Madhya Pradesh Goods and Services Tax Act, 2017 (19 of 2017), the State Government, hereby makes the following rules further to amend the Madhya Pradesh Goods and Services Tax Rules, 2017, namely:- AMENDMENTS 1. In the Forms to the Madhya Pradesh Goods and Services Tax Rules, 2017, after FORM GSTR-9A, the following shall be inserted namely:- FORM GSTR-9C See rule 80(3) PART – A – Reconciliation Statement Pt. I Basic Details 1 Financial Year 2 GSTIN 3A Legal Name < Auto > 3B Trade Name (if any) <Auto > 4 Are you liable to audit under any Act? << Please specify >> (Amount in ₹ in all tables) Pt. II Reconciliation of turnover declared in audited Annual Financial Statement with turnover declared in Annual Return (GSTR9) 5

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ustments in turnover under section 15 and rules thereunder (+/-) N Adjustments in turnover due to foreign exchange fluctuations (+/-) O Adjustments in turnover due to reasons not listed above (+/-) P Annual turnover after adjustments as above < Auto > Q Turnover as declared in Annual Return (GSTR9) R Un-Reconciled turnover (Q – P) AT1 6 Reasons for Un – Reconciled difference in Annual Gross Turnover A B C Reason 1 << Text >> Reason 2 << Text >> Reason 3 << Text >> 7 Reconciliation of Taxable Turnover A Annual turnover after adjustments (from 5P above) <Auto> B Value of Exempted, Nil Rated, Non-GST supplies, No-Supply turnover C D E F Zero rated supplies without payment of tax Supplies on which tax is to be paid by the recipient on reverse charge basis Taxable turnover as per adjustments above (A-B-C-D) < Auto > Taxable turnover as per liability declared in Annual Return (GSTR-9) G Unreconciled taxable turnover (F-E) AT 2 8 Reasons f

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ate tax/UT tax Integrated tax Cess, if applicable 1 2 3 4 5 6 5% 12% 18% 28% 3% 0.25% 0.10% Interest Late Fee Penalty Others (please specify) Pt. IV Reconciliation of Input Tax Credit (ITC) 12 Reconciliation of Net Input Tax Credit (ITC) A ITC availed as per audited Annual Financial Statement for the State/ UT (For multi-GSTIN units under same PAN this should be derived from books of accounts) B ITC booked in earlier Financial Years claimed in current Financial Year (+) C ITC booked in current Financial Year to be claimed in subsequent Financial Years (-) D ITC availed as per audited financial statements or books of account < Auto > E ITC claimed in Annual Return (GSTR9) F Un-reconciled ITC ITC 1 13 Reasons for un-reconciled difference in ITC A B C Reason 1 << Text >> Reason 2 << Text >> Reason 3 << Text >> 14 Reconciliation of ITC declared in Annual Return (GSTR9) with ITC availed on expenses as per audited Annual Financial Statement or books

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rated Tax Cess Interest Penalty Pt.V Auditor's recommendation on additional Liability due to non-reconciliation To be paid through Cash Description Value Central tax State tax/UT tax Integrated tax Cess, if applicable 1 2 3 4 5 6 5% 12% 18% 28% 3% 0.25% 0.10% Input Tax Credit Interest Late Fee Penalty Any other amount paid for supplies not included in Annual Return (GSTR 9) Erroneous refund to be paid back Outstanding demands to be settled Other (Pl. specify) Verification: I hereby solemnly affirm and declare that the information given herein above is true and correct to the best of my knowledge and belief and nothing has been concealed there from. **(Signature and stamp/Seal of the Auditor) Place: …………… Name of the signatory ………………… Membership No……………… Date: …………… Full address ……………&helli

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/ entities, will have to internally derive their GSTIN-wise turnover and declare the same here. This shall include export turnover (if any). It may be noted that reference to audited Annual Financial Statement includes reference to books of accounts in case of persons / entities having presence over multiple States. 5B Unbilled revenue which was recorded in the books of accounts on the basis of accrual system of accounting in the last financial year and was carried forward to the current financial year shall be declared here. In other words, when GST is payable during the financial year on such revenue (which was recognized earlier), the value of such revenue shall be declared here. (For example, if rupees Ten Crores of unbilled revenue existed for the financial year, 2016-17, and during the current financial year, GST was paid on rupees Four Crores of such revenue, then value of rupees Four Crores rupees shall be declared here) 5C Value of all advances for which GST has been paid but

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t payable on such revenue in the same financial year shall be declared here. 5I Value of all advances for which GST has not been paid but the same has been recognized as revenue in the audited Annual Financial Statement shall be declared here. 5J Aggregate value of credit notes which have been accounted for in the audited Annual Financial Statement but were not admissible under section 34 of the CGST Act shall be declared here. 5K Aggregate value of all goods supplied by SEZs to DTA units for which the DTA units have filed bill of entry shall be declared here. 5L There may be cases where registered persons might have opted out of the composition scheme during the current financial year. Their turnover as per the audited Annual Financial Statement would include turnover both as composition taxpayer as well as normal taxpayer. Therefore, the turnover for which GST was paid under the composition scheme shall be declared here. 5M There may be cases where the taxable value and the invoice v

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nd turnover as declared in the Annual Return (GSTR-9) shall be specified here. 7 The table provides for reconciliation of taxable turnover from the audited annual turnover after adjustments with the taxable turnover declared in annual return (GSTR-9). 7A Annual turnover as derived in Table 5P above would be auto-populated here. 7B Value of exempted, nil rated, non-GST and no-supply turnover shall be declared here. This shall be reported net of credit notes, debit notes and amendments if any. 7C Value of zero rated supplies (including supplies to SEZs) on which tax is not paid shall be declared here. This shall be reported net of credit notes, debit notes and amendments if any. 7D Value of reverse charge supplies on which tax is to be paid by the recipient shall be declared here. This shall be reported net of credit notes, debit notes and amendments if any. 7E The taxable turnover is derived as the difference between the annual turnover after adjustments declared in Table 7A above and t

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ility declared in Table 9A to 9O is auto populated here. 9Q The amount payable as declared in Table 9 of the Annual Return (GSTR9) shall be declared here. It should also contain any differential tax paid on Table 10 or 11 of the Annual Return (GSTR9). 10 Reasons for non-reconciliation between payable / liability declared in Table 9P above and the amount payable in Table 9Q shall be specified here. 11 Any amount which is payable due to reasons specified under Table 6, 8 and 10 above shall be declared here. 6. Part IV consists of reconciliation of Input Tax Credit (ITC). The instructions to fill Part IV are as under:- Table No. Instructions 12A ITC availed (after reversals) as per the audited Annual Financial Statement shall be declared here. There may be cases where multiple GSTINs (State-wise) registrations exist on the same PAN. This is common for persons / entities with presence over multiple States. Such persons / entities, will have to internally derive their ITC for each individua

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ble 7J of Annual Return (GSTR-9) shall be declared here. 13 Reasons for non-reconciliation of ITC as per audited Annual Financial Statement or books of account (Table 12D) and the net ITC (Table-12E) availed in the Annual Return (GSTR-9) shall be specified here. 14 This Table is for reconciliation of ITC declared in the Annual Return (GSTR-9) against the expenses booked in the audited Annual Financial Statement or books of account. The various sub-heads specified under this table are general expenses in the audited Annual Financial Statement or books of account on which ITC may or may not be available. Further, this is only an indicative list of heads under which expenses are generally booked. Taxpayers may add or delete any of these heads but all heads of expenses on which GST has been paid / was payable are to be declared here. 14R Total ITC declared in Table 14A to 14Q above shall be auto populated here. 14S Net ITC availed as declared in the Annual Return (GSTR-9) shall be declared

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xes as recommended by the auditor. PART – B- CERTIFICATION I. Certification in cases where the reconciliation statement (FORM GSTR-9C) is drawn up by the person who had conducted the audit: * I/we have examined the- (a) balance sheet as on ……… (b) the *profit and loss account/income and expenditure account for the period beginning from ………..…to ending on ……., and (c) the cash flow statement for the period beginning from ……..…to ending on ………, -attached herewith, of M/s. …………… (Name), …………………….………… (Address), ..…………………(GSTIN). 2. Based on our audit I/we report that the said registered person- *has maintained the books of accounts, records and documents as required by the IGST/CGST/MPGST GST Act, 2017 and the rules/noti

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as appears from*my/ our examination of the books. (C) I/we certify that the balance sheet, the *profit and loss/income and expenditure account and the cash flow Statement are *in agreement/not in agreement with the books of account maintained at the Principal place of business at ……………………and ** ……………………additional place of business within the State. 4. The documents required to be furnished under section 35 (5) of the CGST Act and Reconciliation Statement required to be furnished under section 44(2) of the CGST Act is annexed herewith in Form No. GSTR-9C. 5. In *my/our opinion and to the best of *my/our information and according to explanations given to *me/us, the particulars given in the said Form No. GSTR-9C are true and correct subject to following observations/qualifications, if any: (a) …………………………&hell

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ip;……… Name of the signatory ………………… Membership No……………… Date: …………… Full address ……………………… II. Certification in cases where the reconciliation statement (FORM GSTR-9C) is drawn up by a person other than the person who had conducted the audit of the accounts: *I/we report that the audit of the books of accounts and the financial statements of M/s.………………..…………………. (Name and address of the assessee with GSTIN) was conducted by M/s. …………………………………………..………. (full name and address of auditor alongwith status), bearing membership number in pursuance of the provisions of the &hellip

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s/records/documents as required by the IGST/CGST/MPGST GST Act, 2017 and the rules/notifications made/issued thereunder: 1. 2. 3. 3. The documents required to be furnished under section 35 (5) of the CGST Act and Reconciliation Statement required to be furnished under section 44(2) of the CGST Act is annexed herewith in Form No.GSTR-9C. 4. In *my/our opinion and to the best of *my/our information and according to examination of books of account including other relevant documents and explanations given to *me/us, the particulars given in the said Form No.9C are true and correct subject to the following observations/qualifications, if any: (a) …………………………….…………………………….……………………… (b) …………………………….&helli

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