Circular regarding Enforcement of TDS provision under GST – GST – States – 12-4/78-EXN-Tax-Part-(278/25)-29056 – Dated:- 29-9-2018 Circular – Trade Notice – Public Notice – Instructions – Office orders
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GST – States – 21/2018-State Tax – Dated:- 29-9-2018 – Government of Himachal Pradesh Excise and Taxation Department No.EXN-F(10)-28/2018 Dated: Shimla-2 29th September, 2018 Notification No. 21/2018-State Tax In exercise of the powers conferred by section 164 of the Himachal Pradesh Goods and Services Tax Act, 2017 (10 of 2017), the Governor of Himachal Pradesh is pleased to make the following rules further to amend the Himachal Pradesh Goods and Services Tax Rules, 2017, namely:- (1) These rules may be called the Himachal Pradesh Goods and Services Tax (Eleventh Amendment) Rules, 2018. (2) Save as otherwise provided, they shall come into force with retrospective effect from 18th April, 2018. 2. In the Himachal Pradesh Goods and Services Tax Rules, 2017, – (i) in rule 89, for sub-rule (5), the following shall be substituted, namely:- (5). In the case of refund on account of inverted duty structure, refund of input tax credit shall be granted as per the following formula:- Maximum Ref
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nd Services Tax Act, 2017, read with section 20 of the Integrated Goods and Services Tax Act, 2017, shall be deposited in the Fund. Provided further that an amount equivalent to fifty per cent. of the amount of cess determined under sub-section (5) of section 54 read with section 11 of the Goods and Services Tax (Compensation to States) Act, 2017 (15 of 2017), shall be deposited in the Fund. (2) Where any amount, having been credited to the Fund, is ordered or directed to be paid to any claimant by the proper officer, appellate authority or court, the same shall be paid from the Fund. (3) Accounts of the Fund maintained by the Central Government shall be subject to audit by the Comptroller and Auditor General of India. (4) The Government shall, by an order, constitute a Standing Committee (hereinafter referred to as the Committee ) with a Chairman, a Vice-Chairman, a Member Secretary and such other members as it may deem fit and the Committee shall make recommendations for proper utili
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to require any applicant to produce before it, or before a duly authorized officer of the Central Government or the State Government, as the case may be, such books, accounts, documents, instruments, or commodities in custody and control of the applicant, as may be necessary for proper evaluation of the application; (c) to require any applicant to allow entry and inspection of any premises, from which activities claimed to be for the welfare of consumers are stated to be carried on, to a duly authorised officer of the State Government, as the case may be; (d) to get the accounts of the applicants audited, for ensuring proper utilisation of the grant; (e) to require any applicant, in case of any default, or suppression of material information on his part, to refund in lump-sum along with accrued interest, the sanctioned grant to the Committee, and to be subject to prosecution under the Act; (f) to recover any sum due from any applicant in accordance with the provisions of the Act; (g)
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retary. (8) The Committee shall make recommendations:- (a) for making available grants to any applicant; (b) for investment of the money available in the Fund; (c) for making available grants (on selective basis) for reimbursing legal expenses incurred by a complainant, or class of complainants in a consumer dispute, after its final adjudication; (d) for making available grants for any other purpose recommended by the Central Consumer Protection Council (as may be considered appropriate by the Committee); (e) for making available up to 50% of the funds credited to the Fund each year, for publicity/ consumer awareness on GST, provided the availability of funds for consumer welfare activities of the Department of Consumer Affairs is not less than twenty five crore rupees per annum. Explanation.- For the purposes of this rule, (a) 'applicant' means, (i) the Central Government or State Government; (ii) regulatory authorities or autonomous bodies constituted under an Act of Parliame
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incurred by him in a case instituted by him in a consumer dispute redressal agency. (b) 'application' means an application in the form as specified by the Standing Committee from time to time; (c) 'Central Consumer Protection Council' means the Central Consumer Protection Council, established under sub-section (1) of section 4 of the Consumer Protection Act, 1986 (68 of 1986), for promotion and protection of rights of consumers; (d) 'Committee' means the Committee constituted under sub-rule (4); (e) 'consumer' has the same meaning as assigned to it in clause (d) of sub-section (1) of section 2 of the Consumer Protection Act, 1986 (68 of 1986), and includes consumer of goods on which central tax has been paid; (f) Fund means the Consumer Welfare Fund established by the State Government under section 57 of the Himachal Pradesh Goods and Services Tax Act, 2017 (10 of 2017); (g) 'proper officer' means the officer having the power under the Act to mak
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in stock, inputs contained in semi-finished or finished goods held in stock and capital goods /plant and machinery Unit Quantity Code (UQC) Qty Value (As adjusted by debit/credit note) Input tax credit/Tax payable (whichever is higher) (Rs.) No. Date Central tax State/Union territory tax Integrated tax Cess 1 2 3 4 5 6 7 8 9 10 11 12 8 (a) Inputs held in stock (where invoice is available) 8 (b) Inputs contained in semi-finished or finished goods held in stock (where invoice is available) 8 (c) Capital goods/plant and machinery held in stock 8 (d) Inputs held in stock or inputs as contained in semi-finished /finished goods held in stock (where invoice is not available) 9. Amount of tax payable and paid (based on Table 8) Sr.No. Description ITC reversible/Tax payable Tax paid along with application for cancellation of registration (GST REG-16) Balance tax payable (3-4) Amount paid through debit to electronic cash ledger Amount paid through debit to electronic credit ledger Central Tax St
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duct tax at source under section 51; and (v) Persons required to collect tax at source under section 52. 2. Details of stock of inputs, inputs contained in semi-finished or finished goods and stock of capital goods/plant and machinery on which input tax credit has been availed. 3. Following points need to be taken care of while providing details of stock at Sl. No.8: (i) where the tax invoices related to the inputs held in stock or inputs contained in semi-finished or finished goods held in stock are not available, the registered person shall estimate the amount under sub-rule (3) of rule 44 based on prevailing market price of the goods; (ii) in case of capital goods/ plant and machinery, the value should be the invoice value reduced by 1/60thper month or part thereof from the date of invoice/purchase taking useful life as five years. 4. The details furnished in accordance with sub-rule (3) of rule 44 in the Table at Sl. No. 8 (against entry 8 (d)) shall be duly certified by a practici
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Goods and Services Tax – Started By: – manish raghuwanshi – Dated:- 28-9-2018 Last Replied Date:- 25-10-2018 – Sir, I have filed tran-1 in December,2018 but we have claimed short credit of excise available as per Er-1. Now how can claim balance credit. Can Gst council would allow revision in tran-1 in fuuret or can we ask refund to excise department. Please suggest. – Reply By Yash Jain – The Reply = Dear Sir, The GST Wing has started audit for Trans 1 and have in most cases completed the audit
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Goods and Services Tax – GST – By: – Prasanna Kumar – Dated:- 28-9-2018 Last Replied Date:- 1-10-2018 – AN ANALYSIS OF ADVANCE RULING IN THE CASE OF M/S COLUMBIA ASIA HOSPITALS PVT LTD ADVANCE RULING NO. KAR.ADRG 15/2018 With due respect to the authorities for advance ruling in Karnataka, I have made an attempt to analyze the Advance Ruling given in the case of M/S COLUMBIA ASIS HOSPITALS PVT LTD.[ 2018 (8) TMI 876 – AUTHORITY FOR ADVANCE RULINGS, KARNATAKA ] This attempt is not to disrespect the authorities. This attempt is purely an academic one. The readers are required not to take this analysis as an opinion on legality. Columbia Hospitals Pvt Limited As per the contents of the Advance Ruling, M/S Columbia Hospitals Pvt Ltd is a private limited company and is an International Healthcare group operating a chain of modern hospitals across Asia. The Company is currently operating across six different states having eleven hospitals out of which six units are in the state of Karnataka.
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o quoted by the company in its application. Issues for Advance Ruling As per Para 3 of the Advance Ruling, The question on which advance ruling is sought is as follows; whether the activities performed by the employees at the corporate office in the course of or in relation to employment such as accounting, other administrative and IT system maintenance for the units located in other states as well i.e distinct persons as per Section 25(4) of the Central Goods and Services Act 2017(CGST ACT) shall be treated as supply as per Entry 2 of Schedule I of the CGST Act or it shall not be treated as supply of services as per Entry 1 of Schedule III of the CGST Act Also, as per Para 7 of the Advance Ruling, the Company has also asked, whether the allocation of expenses to registered units located in other states, by IMO tantamount to supply of service between related or distinct persons as per Entry 2 of Schedule I to CGST Act and accordingly liable to tax? Advance Ruling The Ruling reads as fo
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.1 under Findings & Discussion to ascertain the applicability of Entry No.2 of Schedule I to the activities of the accounts and management done by the IMO (India Management Office) for the individual units located both within the state and also outside the state, the authorities have relied upon Entry 2 of Schedule I, which deals with the activities that are to be treated as supplies even if made without consideration, which reads as under; 2. Supply of goods or services or both between related persons or between related persons or between distinct persons as specified in section 25, when made in the course or furtherance of business The contention of the authorities is that the transactions between employer and employee are taxable even though there is no consideration flowing between them since covered by Explanation to Section 15 of the CGST Act. The reference to clause (c) of sub-section (1) of Section 7 has been made at Para 8.3. This provision defines Supply as follows; Suppl
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ods and services in connection with commencement or closure of business; (e) provision by a club, association, society, or any such body (for a subscription or any other consideration) of the facilities or benefits to its members; (f) admission, for a consideration, of persons to any premises; (g) services supplied by a person as the holder of an office which has been accepted by him in the course or furtherance of trade, profession or vocation; (h) services provided by a race club by way of totalisator or a license to book maker in such club; and (i) any activity or transaction undertaken by the Central Government, a State Government or any local authority in which they are engaged as public authorities; Discussion Paper by Expert Committee But unfortunately, the phrase in the course or furtherance of business has not been defined under Section 2 of the CGST Act. An effort has been made to search for the definition of this phrase. We all know that the Central Board of Excise & Cus
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d with the making of taxable supplies to customers for a consideration, it has to be held that the taxable person is in the business of making taxable supplies, and that the taxable supplies which he makes are supplies made in the course of carrying on that business, especially if those supplies are made commercially by those who seek to profit from them. In the UK, there is generally a 6 – point test to determine whether an activity is in the course of business, which has emerged through various judicial decisions. The Paper explained that the same 6-point tests could serve as a set of tools to compare an activity with features of activities that were clearly in the nature of business. The 6-point tests are as follows; Is the activity a serious undertaking earnestly pursued? Is the activity an occupation or function which is actively pursued with reasonable or recognizable continuity? Does the activity have a certain measure of substance in terms of the quarterly or annual value of ta
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ces or both between related persons or between related persons or between distinct persons as specified in section 25, when made in the course or furtherance of business . As long as the supply is not in the course of or in furtherance of business, it is not liable to GST though it is between distinct persons. Only transactions which are in the nature of business and have been carried on in the course of or furtherance of business, whether with or without consideration, are subject to GST and not otherwise. Of course subject to other provisions of the GST law. For sharing of expenses amongst branches, divisions, of a single entity, there is no need to apply GST since they don t tantamount to supply in the course of or furtherance of business in view of the explanation given herein above on supply in the course or furtherance of business. This is a common practice in Profit- Centers type of organizations. Reply By CA.Tarun Agarwalla – The Reply = Dear Mr. Prasanna Kumarthe article is a
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Goods and Services Tax – GST – By: – Dr. Sanjiv Agarwal – Dated:- 28-9-2018 Last Replied Date:- 15-11-2018 – Manufacture or production of liquor has always been a controversial matter in indirect tax regime. While the Constitution of India does not allow Union to levy any tax (earlier central excise duty or Goods and Services Tax now) on manufacture of alcoholic beverages meant for human consumption, i.e. potable liquor, it remains a State subject. This was earlier subject to levy of State Excise Duty and Value Added Tax and now subject to same taxes, it being out of GST ambit. Pre-GST taxation Prior to GST coming into force w.e.f. 01.07.2017, following taxes were levied on manufacture of alcoholic beverages meant for human consumption: State excise duty (on manufacture) Value added tax (on transfer of goods) Service Tax (based on contractual arrangements between bottlers and brand owners) Both, prior and post 01.07.2017 (when negative list was introduced in Service Tax), manufacture
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eld that CBEC Circular dated 27.10.2008 on levy of service tax on production of alcoholic beverages on job work basis is in consonance with the statutory provisions and law as laid down by the Supreme Court. Keeping in view the dictionary clauses and circulars issues by the CBEC, it is quite luminescent that word manufacture has to be understood in a broader sense and not to be confined or restricted to the excisable product in the Act. It would include all processes which amount to manufacture whether or not the final product is an excisable product. In Sir Shadilal Distillery and Chemical Works & Another v. State of Uttar Pradesh, 1996 (1) TMI 453 – SUPREME COURT OF INDIA , Apex Court after referring to the decision rendered in Khoday Distilleries Ltd v. State of Karnataka 1995 (12) TMI 378 – SUPREME COURT OF INDIA had expressed the view that bottling of liquor is an integral part of manufacture and supply thereof. The manufacturing process does not necessarily mean it has to be
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Pvt. Ltd. v. State of MP 1996 (7) TMI 568 – MADHYA PRADESH HIGH COURT . The decision rendered in M/s Vindhyachal Distilleries Pvt Ltd v. State of MP 2006 (4) TMI 249 – MADHYA PRADESH HIGH COURT does not state the law correctly inasmuch as it has expressed the opinion that packaging and bottling of liquor are not the part of manufacturing process and hence liable to service tax . Normally in such an arrangement, following cost elements are found – (i) Bottling / job charges – paid to CBU (ii) Distribution costs including freight, transit insurance etc – paid to CBU (iii) Other reimbursable – paid to CBU (iv) Cot of raw materials – paid to CBU (v) Cost of packing materials – paid to CBU (vi) State excise duty and VAT – paid to State Government (vii) Surplus/profit – retained by BO On 27.10.2008, the Ministry of Finance issued a Circular which specified taxability issue with reference to alcoholic products. Accordingly, Manufacture and excisable goods are two independent concepts and it
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xtend to the manufacture or production of alcoholic beverages meant for human consumption, it cannot be said that the term manufacture used in Business Auxiliary Service would also not cover the process of making the said product, namely alcoholic beverages. Such processes amounting to manufacture on production of goods were placed under negative list and no Service Tax was leviable thereon. There was no levy of service tax on any process or job work amounting to manufacture or production of goods including manufacture of alcoholic liquors for human consumption, opium, India hemp and narcotic drugs on which State excise duties are leviable. In essence, these were out of service tax net because in case of manufacture of goods, excise duties are leviable and in case of alcoholic beverage etc. these are subjects of taxation by States and not covered under Central Excise Act, 1944. Earlier, exemption was provided to services in relation to manufacture or processing of alcoholic beverages v
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cise duty/VAT, they do not present any consideration for rendering the service. Whether such amount is paid by BO or by CBU, they have no nexus with the provision of service. As such, these levies will not be included for charging service tax. Similarly, the surplus/profit earned by the BO being in the nature of business profit (which falls within the purview of direct taxes), will not be chargeable to service tax. The taxability was tested and decided in Blossom Industries Ltd. v. Commissioner, Daman 2015 (10) TMI 859 – CESTAT AHMEDABAD , wherein it was held that on plain reading of the Board instruction, it is clear that one of the elements of gross value of invoice is 'surplus/profit retained by BO', which would not be included in taxable value. In other words, the amount returned to BO is in so far as 'surplus/profit' of BO, cannot be included in the taxable value. The amount 'surplus/profit retained by BO' as claimed by the appellant, had been returned to B
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nsideration. Some of such services relating to processes not amounting to manufacture were exempt under Notification No. 25/2012-ST dated 20-6-2012 (entry No. 30). Amendment made by Finance Act, 2017 Finance Act, 2017 had omitted the entry in clause 40 of section 65B within effect from the date of enactment. This omission is a consequent amendment as the said entry in negative list [Section 66D(6)] has been omitted and it will no longer be a part of negative list. However, the said service shall be allowed exemption under Entry No. 30(i) of amended Notification No. 25/2012-ST. The definition has now been provided in clause 2(ya) of the amended exemption Notification No. 25/2012-ST vide Notification No. 7/2017-ST dated 2.2.2017. (ya) process amounting to manufacture or production of goods means a process on which duties of excise are leviable under section 3 of the Central Excise Act, 1944 (1 of 1944), or the Medicinal and Toilet Preparation (Excise Duties) Act, 1955 (16 of 1955) or any
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2018 (11) TMI 1519 – CESTAT MUMBAI – TMI – Failure to make pre-deposit – Section 35F of the Central Excise Act, 1944, made applicable to the Service Tax matters under Finance Act, 1994 – Held that:- The requirement of Section 35F of the Act, have been complied with, for entertaining the appeal of the appellant.
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However, since the learned Commissioner (Appeals) has dismissed the appeal solely on the ground of noncompliance of the requirement of Section 35F of the Act, and no findings have been recorded with regard to the merits of the case, the matter should be remanded to the learned Commissioner (Appeals) for deciding the issue afresh on the basis of the available records and the submissions to be made by the appellant.
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Appea
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sit has not been made as per the statutory provisions. 4. The authorized representative appearing on behalf of the appellant submits that out of the total adjudged demand of ₹ 3,85,995/-, the appellant had already deposited ₹ 4,10,297/- before filing the appeal in the office of the Commissioner (Appeals). Thus, he submits that such extra deposit made by the appellant constitute sufficient compliance of the requirement of Section 35F of the Act. The learned D.R., upon verification of the payment particulars, has also confirmed that the appellant had deposited more amount than the adjudged demand confirmed by the adjudicating authority. 5. In view of the submissions made by both the sides, I am of the considered opinion that the r
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Customs – 28/2018 – Dated:- 28-9-2018 – OFFICE OF THE PRINCIPAL COMMISSIONER OF CUSTOMS CUSTOMS HOUSE, NAVARANGPURA, AHMEDABAD, 380009. F. No. VIII/48-21/Cus/Sys/2017-18 PUBLIC NOTICE No. 28/2018 Dated 28-09-2018 Sub.: Formation of New Helpdesk for IGST Refund Attention of all trade Associations/Chamber of Commerce and members of Customs House Agents' Association and Public is invited to the Public Notice No. 02/2018 Dated 11.01.2018 and Public Notice No. 03/2018 dated 12.01.2018 issued vide F.No. VIII/48-21/Cus/Sys/2017-18 vide which information regarding formation of Helpdesk for IGST refund was publicized. On account of Annual General Transfer, 2018, officers in harge of IGST – Refund Helpdesk have been transferred/rotated. Detail o
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2018 (10) TMI 1373 – CESTAT MUMBAI – TMI – Cash refund – export of services or not – Rule 5 of CENVAT Credit Rules, 2004 – rejection on the ground that the services since performed in India, therefore, do not fall under the scope of ‘export of service’ – Held that:- In their own case Fertin Pharma Research & Development Pvt. Ltd. [2017 (7) TMI 1238 – CESTAT MUMBAI], this Tribunal has already taken a view that the services rendered by the appellant are in the nature of export service and hence eligible to cash refund of accumulated CENVAT Credit.
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There are no merit in the contention of the learned AR for the revenue that the ratio laid down by the Hon’ble Bombay High Court in M/s SGS India Ltd.’s case [2014 (5) TMI 105 – BOMBAY HIGH COURT] cannot be made applicable to the facts of the present case on the ground that in the said case, the Place of Provision of Service Rules,2012 was not considered – This Tribunal while interpreting the provisions of new Rules, that is, Place of Pr
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ra These appeals are filed against Order-in-Appeal No. MKK/327-332/RGD/APP/2017 dated 14.12.2017 passed by the Commissioner of Central Excise & Service Tax (Appeals), Raigad. 2. Briefly stated facts of the case are that the appellants have been registered for providing taxable output service under the category of Technical Testing and Analysis Service/Scientific and Technical Consultancy Service . The appellant had claimed to have exported the said services to one M/s Fertin Pharma, Denmark. The inputs/raw materials on which research and development activity was undertaken by the appellant had been purchased from their parent company against valid consideration and imported into India on payment of appropriate customs duty. Appellant undertook research activity on the said goods and exported the services viz. Technical Testing and Analysis Service/Scientific and Technical Consultancy Service , against convertible foreign exchange. They had availed CENVAT Credit on various input ser
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to two services, there has been nexus between the other input services and output services and accordingly the said services satisfied the definition as prescribed under Rule 2(l) of the CENVAT Credit Rules, 2004. Hence, the present appeals. 3. The learned Advocate Shri D.H. Nadkarni for the appellant submits that they had provided services outside India in relation to technical testing and analysis service. It is his contention that as per clause (d) of Rule 6A of Service Tax Rules, 1994, the place of the provision of service is outside India . It is his contention that under the Place of Provisions of Service Rules, 2012, from Rule 4 onwards the respective rules are divided subject-wise i.e. performance based service, immovable property, events etc., and as such the service provided by the appellant would not fall in any of these categories. It is his contention that the services rendered by the appellant squarely covered under the scope of Rule 3 of the Place of Provision of Service
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012 will not be applicable. Further, he has submitted that period from April, 2013 to June, 2013, in similar facts in their own case, this Tribunal decided the issue in their favour reported as Fertin Pharma Research & Development Pvt. Ltd. – 2017 (6) GST 475 (T). Also, this Tribunal in the case of Commissioner of Central Excise, Pune-I Vs. Sai Life Sciences Ltd. – 2016 (42) STR 882 (Tri- Mum)&Principal Commissioner of Central Excise, Pune-I Vs. Advinus Therapeutics Ltd. – 2017 (51) STR 296 (Tri-Mum) held that undertaking test in India and providing results to the overseas customers would fall within the scope of export service and eligible to cash refund of accumulated CENVAT Credit under Rule 5 of the CENVAT Credit Rules, 2004. On the denial of credit on input services namely, Building Maintenance Service and Rent-a-cab service, the learned Advocate has submitted that there is nexus between the said services with the output service, hence, eligible to credit. 5. Learned AR fo
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se, also cannot be considered to be a good law. The learned AR for the Revenue referred to the judgments of this Tribunal in support of their case namely, Crompton Greaves Ltd. – 2015-TIOL-2724-CESTAT-MUM, and Roha Dyechme Ltd. Vs. CCE, Raigad – 2017-TIOL-3448- CESTAT-MUM and submitted that The present facts are identical mirror image of the facts of the aforesaid judgments and hence, the services are since performed in India, therefore, Rule 6A of Service Tax rules, 1994 is not satisfied, consequently, the appellant are not eligible to cash refund of the accumulated cenvat credit. 6. Heard both sides and perused the records. Undisputedly, the appellant had purchased the goods from the overseas company, on which they discharged appropriate customs duty on its import into India. Necessary tests are carried out by them on the said goods in India and after analysis the relevant report was submitted to the overseas Denmark company. In the process of providing the said output service, that
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and decisions that exports are not taxable and, with the most palpable manifestation of export of invisibles being the receipt of convertible foreign exchange from a recipient of service located outside the country, that services are taxable at the destination, the scope of Rule 4 must necessarily be scrutinized to ascertain if there was, indeed, legislative intent to deny acknowledgement as exporter to a certain category of service providers that were so privileged tell them. There is no dispute that the recipient of service is located outside India and that the consideration is received in foreign convertible currency. Yet, Revenue insists that performance of service is in India. A service is not necessarily a single, discrete, identifiable activity; on the contrary, it is a series of invisibles that cater to the needs of a recipient; it is upon the consumption of the service by the recipient that service is deemed to have become taxable. This has been so held by the Hon ble Supreme
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which is possessed by the recipient. Hence, even if some of the activities are carried out in India, by no stretch can it be asserted that the fulfilment of the activity is in India. Therefore, the inescapable conclusion is that the location of the actual performance of the service is outside India and, even with the special and specific provision of Rule 4 of Place of Provision of Services Rules, 2012, the performance of service being rendered outside India would render it to be an export. 14. In this context, the legislative intent of incorporating a special and specific provision in Rule 4 may yield further insights. The special provision, which may be seen as an exception to the general Rule 3, deals with services in respect of goods as well as those provided to individuals. Not unnaturally, the services that require the physical presence of the person is taxed where the consumer receives the service and not at his location which as per Rule 2(i)(iv) would be his usual place of re
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been framed by the Central Government make it absolutely clear that taxable service provided from outside India is liable to service-tax. In the example given by the learned Counsel for the petitioner, there is no question on the service of haircut having been received in India. The intent in Rule 4 to remedy out some specific situations that would, otherwise, have enabled escapement from tax or leviability to tax where Rule 3 of Place of Provision of Services Rules, 2012 may not serve to confer jurisdiction becomes increasingly obvious. 15.Accordingly, we can infer that the location of performance of service in respect of goods is not an abstract, absolute expression for fastening tax liability on services that involve goods in some way; for that, Rule 3 would have sufficed. A contingency that is not amenable to Rule 3 has been foreseen and remedied by Rule 4 and in the process, the sovereign jurisdiction to tax is asseted. It is, therefore, not by the specific word or phrase in Rule
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(1) of Place of Provision of Services Rules, 2012 would appear, by elimination of possibilities, to relate to goods that require some activity to be performed without altering its form. The exemplification in the Education Guide referred supra renders it pellucid. Certification is an important facet of trade and such certification, if undertaken in India, will not be able to escape tax by reference to location of the entity which entrusted the activity to the service provider in India. This is merely one situation but it should suffice for us to enunciate that Rule 4(1) is intended to resorted when services are rendered on goods without altering its form that in which it was made available to the service provider. This is the harmonious construct that can be placed on the applicability of Rule 4 in the context of tax on services and the general principle that taxes are not exported with services or goods. 17. The goods supplied to the respondent, minor though the proportion may be, are
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ce of Provision of Service Rules,2012 was not considered. This Tribunal while interpreting the provisions of new Rules, that is, Place of Provision of Service Rules, 2012 followed the ratio laid down in the said case in reiterating the basic principle of levy of service tax and observed that it is a consumption-based levy, accordingly, the technical and consultancy service, commences from the stage of undertaking the test on the goods procured and the service is completed on delivery of the test report/certificate to the overseas client. I do not find any reason to deviate from the aforesaid observation of this Tribunal. Further, the judgements referred by the learned A.R for the revenue, in my opinion, are not relevant to the facts of the present case, inasmuch as in the said judgement the issue raised was levy of service tax on procurement of FDA certificate for the goods to be sold in the respective country. In the result, following the aforesaid precedent, I do not find merit in th
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2018 (10) TMI 1279 – CESTAT MUMBAI – TMI – 100% EOU – Refund Claim – rejection on the ground that appellant failed to submit required documents to establish that the services were to be treated as export of service – Held that:- The agreement for sale need not be necessarily a written one in a pre-defined format. It can be through oral agreement or written request made in letter correspondence. It can also be offer and acceptance communicated through emails. Therefore, rejection of refund claim on the ground that agreement copy has not been submitted is improper.
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Going by the order-in-original dated 25.08.2015 and 13.01.2015, in which refund claim amount has been referred in tabular form, the disputed amount of refund claim was ₹ 2,86,171/- and ₹ 4,69,426/- respectively. Going by the ST-3 copy submitted, the total amount outstanding to the credit of the appellant was ₹ 10,19,895/- which indicates that after deducting the claim amount adjudicated upon in those t
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ng on December 2013 and March 2014 by the appellant EOU is under challenge in this appeal. 2. Factual backdrop of the case is that appellant is an 100% EOU service provider who commenced its operation in October 2013 and for the above referred two quarters cenvat credit amounting to ₹ 2,64,298/- was denied to the appellant vide order-in-original no. Refund/RKS/52/2015 dated 16.06.2015 that ultimately attained confirmity in the Order-in-Appeal. The Grounds of rejection are different in both orders. Order-in-originals indicates that appellant failed to submit required documents to establish that the services were to be treated as export of service while Order-in- Appeal indicates that from the ST-3 returns submitted by the appellant, the exact amount of credit to be availed for those two quarters could not be ascertained. 3. In the appeal memo and during the course of hearing of the appeal, the ld. Counsel for the appellant submitted that for the same nature of services two consecu
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efore him for which he rejected the claim of appellant, besides other grounds referred in order-in- original, though requirement of production of Constitution certificate was not found mentioned in the deficiency note. He further submitted that all those documents were produced before the Commissioner (Appeals), who rejected the appeal on narrow technical ground that reversal of cenvat credit for the corresponding period could not be ascertained from the ST-3 returns. In submitting Chartered Accountant report on bifurcation of cenvat credit amount on quarterly basis, the ld. Counsel for the appellant submitted that the two subsequent orders-in-original submitted to the Commissioner (Appeals) in this case clearly reveal the total amount of cenvat credit held to be admissible and the balance amount pertains to the period of dispute which could have been easily assessed by the Commissioner in holding his finding in favour of the appellant, for which he prays for setting aside the order of
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ppeal memorandum and submissions made by the appellant. I find that the entire claim was rejected by the adjudicating authority on the ground of non-submission of the documents. I also find that during the personal hearing before the adjudicating authority, the appellant had declared that there is no agreement between the foreign client and the assessee, as both are group companies and all the service orders are received online. During the personal hearing before the adjudicating authority, the appellant failed to produce the evidences regarding debit of the cenvat credit for refund amount claimed. In the appeal memorandum, the appellant had not submitted any grounds of appeal and only stated that sufficient opportunity was not granted to them. I don t agree with the contention of the appellant as appellant themselves had attended the personal hearing before the adjudicating authority. After the personal hearing before me, appellant had submitted copy of the agreement and few order-in-
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has also held that the appellant is exporting Design Service other than Interior decoration and Fashion designing. 6. From his finding referred above, it is apparently clear that – i) Service orders were received by the appellant company online from the foreign client; ii) Copy of agreement between the receiver and provider of service and order-in-original in the subsequent period were filed by the appellant before him iii) Service of the appellant is covered under 65(b)(4) of the Finance Act, 1994; iv) Service of designing for German based company located outside India is to be treated as export service under Rule 6A of the Service Tax Rules, 1994; and lastly, v) The department vide order no. Refund/RKS/146/2014 dated 26.01.2015 has also held that the appellant was exporting design service other than interior decoration and fashion designing. This being the observation of the Commissioner (Appeals) rejection of the claim of the appellant only on the ground that it was not clearly asce
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, which is equally applicable to service tax matter, is also empowered to make further enquiry and form an independent opinion and is not necessarily required to confine his views only on the order-in-original [MIL India Ltd. vs. CCE 2007 (260) ELT 188 (SC)]. He had apparently exercised that power and even accepted the copy of the agreement executed between the appellant and the overseas service recipient. Further, going by the order-in-original dated 25.08.2015 and 13.01.2015, in which refund claim amount has been referred in tabular form, the disputed amount of refund claim was ₹ 2,86,171/- and ₹ 4,69,426/- respectively. Going by the ST-3 copy submitted, the total amount outstanding to the credit of the appellant was ₹ 10,19,895/- which indicates that after deducting the claim amount adjudicated upon in those two order-in-originals, the balance amount remaining is ₹ 2,64,298/-, which is also found reflected in the order-in-original dated 16.06.2015 in tabular
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2018 (10) TMI 1145 – AUTHORITY FOR ADVANCE RULING, PUNJAB – 2018 (18) G. S. T. L. 377 (A. A. R. – GST) – Levy of GST – charges received on account of washed away / cancelled contracts for supply of goods – Forward Contracts – agreeing to the obligation to refrain from an act, agreeing to the obligation to tolerate an act or a situation, or agreeing to the obligation to do an act – scope of 'supply' and 'securities' – whether GST is applicable on the differential payment received by a party to the aforesaid contract from the other party to the contract is (in) event of “settlement”, “washout” or “closure” of contract by it?
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Held that:- While it is clear that this activity is not a sale transfer, barter, exchange, licence, rental or lease, it is also apparent that the situation of closure of contract which was related to supply of goods, would also not be covered under the term disposal. The term disposal carries a connotation that the goods physically leave the possession of the
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asure, the claim of the applicant that the closure of purchase/sale of cotton contract by way of settlement between him and the other contracting party in terms of the contract, would be covered under the term 'securities' in the definition of 'services' in Section 2(102) of the CGST Act, 2017 and hence would not entail tax on services, does not seem to be valid.
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While it is forthcoming that legal provisions discussed above do not exclude the closure of purchase/sale of cotton contract by way of settlement between applicant and the other contracting party in terms of the contract from scope of services, and the applicant would therefore be liable to the provisions of Section 9 of the CGST Act, 2017 – it is evident that intention of the Government, evident from the answer to the FAQ, is not to tax settlements under forward contracts where settlement takes place by way of net settlement of differential of the forward rate over the prevailing market rate on the settlement date. Ther
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also built in the contract, if the contract is settled by payment of agreed amount of monies. Therefore, this activity can clearly be considered as supply of service by 'agreeing to the obligation to refrain from an act', and would therefore by subject to applicable tax – The present activity is also a toleration of the act of not providing the other party to the contract, the agreed quantity of goods at agreed prices at the agreed date, on payment of agreed amount of monies to settle the contract. Therefore, this would be liable for consideration as supply of service by way of agreeing to the obligation to tolerate an act or a situation.
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The activity of closure of the sale contract of cotton by either of the contracting parties by way of settlement considering a price different from the market price of cotton on the day of settlement would be a supply of service under each of the three limbs i.e. agreeing to the obligation to refrain from an act, agreeing to the obligation to to
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Act, 2017 and would therefore be chargeable to GST.
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In the forward contracts in cotton purchase being settled by M/s. Louis Dreyfus Company India Pvt. Ltd. with the other party to the contract by way of payment of the differential of forward rate and prevailing market rate on the settlement date, the same would be falling within the purview of 'securities' as defined in Section 2(101) of the CGST Act, 2017and would therefore not be chargeable to GST. – AAR/GST/PB/001 Dated:- 28-9-2018 – NAVDEEP BHINDER AND G.S. BAINS, MEMBER Present for the Applicant: Sh. Abhishek Mishra, C.A. & Sh. Anand Aggarwal, C.A. (Note: An Appeal against this order lies with the Appellate Authority in terms of Section 99 and Section 100 of the CGST Act, 2017 and Section 99 and Section 100 of the PGST Act, 2017 within a period of thirty days from the date of communication of this order.) M/s. Louis Dreyfus Company India Private Limited, Ground Floor, House No. 378, Model Town, Phase-I, Bhatinda, 151001
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the CGST, the charges received on account of forbearance for supply of goods are part of consideration. A personal hearing was held on 13.08.2018 before the Advance Ruling Authorities, Punjab. On 13-08-2018, Sh. Abhishek Mishra & Sh. Anand Aggarwal, Chartered Accountants appeared on behalf of the applicant with regard to advance ruling application and reiterated their submissions made in Annexure-1 & Annexure-2 of their advance ruling application dated 07-06-2018. They stated that the activity of M/s. Louis Dreyfus Company India Private Limited, Ground Floor, House No. 378, Model Town, Phase-I, Bhatinda, 151001 (Punjab) of signing forward contracts for sale/purchase of Cotton wherein the contract is closed by settlement without supply of goods would not be covered under the term Services as defined under section 2(102) of the CGST Act, .2017, in as much as these above said activity would be covered under the term Securities which has been excluded from the scope of Services .
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ng more to submit or add in addition to Annexure-I & Annexure-2 already submitted with the advance ruling application, which are reproduced as follow: Annexure 1 Statement of relevant facts having a bearing on the question(s) on which advance ruling is required Background 1. The Applicant is a Company incorporated under the Indian Companies Act, 1956, and is inter alia engaged in the business of purchase and sale of cotton, oil and grains. The Appellant, for the purposes of carrying on its business, is registered under the provisions of the Central Goods and Services Tax Act, 2017 (hereinafter referred to as the CGST Act ) and State Goods and Services Tax Act, 2017 vide Goods and Services Tax Identification No. 03AAACL7361E1ZV. Nature of activity proposed to be undertaken by the Applicant 2. In order to stay competitive in the trading of commodities and to ensure minimal profitability in highly volatile commodities market, the Company enters into customized Contracts which are an e
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Eight Thousand Four Hundred Only) Indian Rupees/ Candy K. Taxes The Price is exclusive of all applicable taxes like the Goods & Service tax, duties, cesses, local taxes and any other indirect taxes. Any additional tax burden, duties and cesses etc. at the time of invoicing shall be borne by the recipient. L. Incoterms Ex-Gin/Warehouse, Gujarat (INCOTERMS 2010) M. HSN Code 5201 N. Payment Terms Margin Money at 10% value of goods (plus taxes) to be paid by recipient to supplier within 3 working days from the contract generation date. Balance payment as per last date of payment. O. Cash Discount Cash discount for a maximum 15 days at the rate of 15% p.a. prorated for early payment before the last date of payment shall be given to recipient, on total contract value including taxes or received amount whichever is lower P. Interest on Margin Money Not Applicable Q. Last Payment/ Carry Terms (Supplier s Exclusive Option and sole discretion) On any unpaid Outstanding amount inclusive of ta
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ment / initial margin / mark to market margin (clause 2 of the GTCs) / Carry Charges (Clause Q of the Contract) as per the time period stipulated in the Contract at as and when demanded by the Supplier as the Contractual terms, or delays approval (clause 4 of the GTCs), Supplier has the exclusive right exercisable as its sole discretion to settle / close the Contract, and debit any loss and charges to Recipient s account. Purchase Contract A. PO generation date 09/12/2017 B. Trade Date 08/12/2017 B. TT no. RS 17-18/0297 C. Contract no. PO/PB/2017-18/0043 E. Quantity 110 (One Hundred Ten Only) Fully pressed Cotton Bales, Bales weight of 165 Kg. each. +/- 3.0% variation in weight allowed F. Specification 1 Growth 2. Station 3. Variety 4. Grade 5. Staple 6. Micronaire 7. Strength 8. Trash 9. Moisture Indian raw cotton crop 2017-18 Crop Year Punjab (PB) All Punjab J-34-RJ-RG Midding 28+ mm Minimum 4.0+ NCL 28 GPT Minimum 4 % (1:1 discount above 4%) 9% (Moisture will be checked on spot (at
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s and 50 Kg for lot of 100 bales) allowed between Pressing weights and empty/loaded weights at time of receipt. L. HSN Code 5201 M. Payment Terms Payment will be made within 8 days from date of pressing but after lifting of goods by the Recipient from Supplier s designated gin/ warehouse. N. Cash Discount Cash discount of 16.8% per 360 days for max 8 days pro-rated will be deducted by the Recipient for early payment on total Invoice value including taxes, if any. Bank charges, if any, to Recipient s account. Clause 3 of the General Terms and Conditions applicable to Cotton Purchase Contracts / Agreements ( GTC ) – In case of non-delivery or failure to fulfill the contract by Suppliers per Specification (Clause F of the contract), the contract will be settled as per CAI Rules and By-laws, Supplier to give written intimation via Broker or directly to the Recipient if it cannot fulfill the delivery of the contracted quantity (Clause E of the contract) as per Specification (Clause F of the
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um pre-specified in the Contract against supply of predetermined quantity of cotton. 6. On the other hand, in case of closure or washout of aforesaid Contracts, the party to the Contract which opts for such closure or washout is required to pay to the other party a sum equivalent to difference between the Settlement rate and the rate of cotton at which the supply of the same is agreed upon. 7. The Settlement rate is enshrined in the Contract to be as follows: Sale Contract – It is discretionary upon the Company to settle / close the Contract at the rate fixed by it. In this regard, the rate at which the Company settles is usually the market rate of cotton prevalent on the Commodities Exchange such as MCX on the day on which such settlement is made. Purchase Contract – Market rate of cotton prevalent on Commodities Exchange such as MCX on the day on which such settlement is made. The fixation of rate as per the Contract is binding on the other Party to the Contract without any room for
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pply (of goods or services or both), made for consideration in course or furtherance of business such as sale, transfer, barter, exchange, license, rental, lease or disposal. Section 7(1) of the CGST Act reads as under: 7. (1) For the purposes of this Act, the expression supply includes (a) all forms of supply of goods or services or both such as sale, transfer, barter, exchange, licence, rental, lease or disposal made or agreed to be made for a consideration by a person in the course or furtherance of business; (b) import of services for a consideration whether or not in the course or furtherance of business; (c) the activities specified in Schedule l, made or agreed to be made without a consideration; and (d) the activities to be treated as supply of goods or supply of services as referred to in Schedule ll. 3. It is apparent that in case of Settlement , Washout or Closure of Contract, there is no supply of goods (i.e. Cotton in the instant case) and applicability of GST on supply of
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t is merely clarificatory in nature and in no manner tends to expand the ambit of transactions on which GST applies under the GST laws. 6. In the above backdrop, Serial No 5(e) of Schedule Il should be construed to mean that GST liability arises in the eventualities enlisted below as the same would be deemed to be supply of services under the GST law: – agreeing to the obligation to refrain from an act; – agreeing to the obligation to tolerate an act or situation – agreeing to the obligation to do an act 7. It is noteworthy that the aforesaid Entry in Schedule II is a combination of two activities on part of the deemed supplier of services, which are as follows: – An overt act to agree to the obligation – An activity which follows the agreement to the obligation i.e. to actually refrain from an act or to actually tolerate an act or situation A combination of aforesaid two acts would result into rendering of Service in terms of Serial No. 5(e) of the Schedule Il read with Section 7 of t
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refrain from an act or actually tolerate an act or situation or to do an act is not fulfilled in the instant case as both the Parties to the Contract are bound by Contractual terms to settle the Contract financially. None of the Parties to the Contract perform an act or tolerate the same either in lieu of the transaction involving financial settlement. In simple words, the Party which faces the proposition of the other Party to Washout the Contract cannot do anything but accept the exclusive fall out of Wash out of Contract i.e. to accept the payment for settling the non-delivery financially. If either of the Parties do not follow the financial settlement as per the terms of the Contract, arbitration entails. In this regard, it would be too far-fetched to state that the Party which faces the Washout tolerated such act of the other Party to the Contract by not opting for arbitration and hence rendered a Service in terms of the GST Act. Not taking a legal recourse envisaged by the Contr
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es, out of his free will and discretion, to enter into non-compete agreement and also takes an "action" by not competing with the other Party to the Contract. Both the said ingredients of "agreeing to an obligation" and 'to refrain from and act or to tolerate an act or situation or to do an act" are being fulfilled and hence qualification of such "actions" in unison qualify as "Service" in terms of erstwhile Service tax law governed by Chapter V of the Finance Act, 1994. On the other hand, in the present factual matrix, neither following the exclusive mandate of the Contract is "agreeing to an obligation" nor not opting to take legal recourse i.e. to arbitrate can qualify as "refrain from and act or to tolerate an act or situation or to do an act". 12. In light of the above argument, it emerges that payment of differential sum by the Party to the Contract for effecting "Washout" of the Contract can at best b
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her than goods, money and securities but includes activities relating to the use of money or its conversion by cash or by any other mode, from one form, currency or denomination, to another form, currency or denomination for which a separate consideration is charged" Section 2(102) defined services as 'anything other than goods, money and securities'. 15. Securities has been defined in Section 2(101) to read as under: Securities shall have the same meaning as assigned to it in clause (h) of Section 2 of the Securities Contracts (Regulation) Act, 1956. 16. The definition of securities as given in clause (h) of Section 2 of the Securities Contracts (Regulation) Act, 1956 ( SCRA ) is as follows: (h) securities include- (i) shares, scrips, stocks, bonds, debentures, debenture stock or other marketable securities of a like nature in or of any incorporated company or other body corporate; (ia) derivative; (ib) units or any other instrument issued by any collective investment sch
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derivatives;] 18. The term commodity derivatives is defined as Section 2(bc) of SCRA, to read as follows: commodity derivative means a contract – (i) for the delivery of such goods, as may be notified by the Central Government in the Official Gazette, and which is not a ready delivery contract; or (ii) for differences, which derives its value from prices or indices of prices of such underlying goods or activities, services, rights, interests and events, as may be notified by the Central Government, in consultation with the Board, but does not include securities as referred to in sub-clauses (A) and (B) of clause (ac);] 19. In this regard, reference is made to Entry No. 59 of Notification No. S.C. 3068(E) dated 27 September 2016 issued under Section 2(bc) of the SCRA which includes Cotton as follows: Cotton Complex (including Kapas, fibre, loose, half pressed, full pressed, yarn, pods, cloth) 20. Further, reference is made to Section 2(ea) of the SCRA which defines Ready Delivery Contr
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a conjoint reading of the above provisions of SCRA, it emerges that Contract entered into for supply of cotton should qualify as Commodity Derivative in the scenario where Contract is settled financially pursuant to which physical delivery of Cotton does not take place. 22. It is apparent that Commodity Derivatives are included in the definition of Derivatives and in turn the same is included in the definition of Securities . Securities are specifically excluded from the definition of goods and services 23. This is supported by Frequently Asked Questions ( FAQ ) no. 36 & 37 issued by GST authorities. The relevant extract if said FAQ is reproduced hereunder for easy of reference: S.no. Question Answer 36 Would future contracts be chargeable to GST? Future contracts are in the nature of financial derivatives, the price of which is dependent on the value of underlying stocks or index of stocks or certain approved currencies and the settlement happens normally by way of net settlement
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e-determined price. The settlement could be by way of actual delivery of underlying commodity/currency or by way of net settlement of differential of the forward rate over the prevailing market rate on the settlement date. Where the settlement takes place by way of actual delivery of underlying commodity / currency, then such forward contracts would be treated as normal supply of goods and liable to GST. Where the settlement takes place by way of net settlement of differential of the forward rate over the prevailing market rate on the settlement date, the same would be falling within the purview of 'securities' as defined in Section 2(101) of the CGST Act, 2017. As securities are neither 'goods' nor 'services' as defined in the CGST Act, 2017, future contracts are not chargeable to GST. However, if some service charges or service fees or documentation fees or broking charges or such like fees or charges are charged, the same would be a consideration for supply o
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ructure under the CGST Act, 2017 (which should be hereinafter read to also mean Punjab GST Act, 2017, the provisions in both Acts being similar) imposing the tax. The charging Section i.e. Section 9 reads as follows: 1) . . . . ……there shall be levied a tax called the central goods and services tax on all intra-State supplies of goods or services or both, except on the supply of alcoholic liquor for human consumption, on the value determined under section 15 and at such rates, not exceeding twenty per cent., as may be notified by the Government on the recommendations of the Council and collected in such manner as may be prescribed and shall be paid by the taxable person Further, the scope of supply has been laid down in Section 7 of the CGST Act, 2017. Relevant portion of which reads as under:- 7 (1) For the purposes of this Act, the expression supply includes all forms of supply of goods or services or both such as sale, transfer, barter, exchange, licence, rental, lease or dispos
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er the situation of closure of the contract as per agreed terms, would be covered under these. While it is clear that this activity is not a sale transfer, barter, exchange, licence, rental or lease, it is also apparent that the situation of closure of contract which was related to supply of goods, would also not be covered under the term disposal. The term disposal carries a connotation that the goods physically leave the possession of the supplier, which is not the situation in the present case. Therefore, we reach the conclusion that the scenario of closure of contract by the applicant or its other contracting party would not amount to supply of goods and therefore, no goods and service tax would be applicable as far as supply of goods is concerned. 4. Now, it needs to be seen whether the activity of closure of contract by the applicant or the other contracting party would fall under the scope of the term service or under the scope of the term supply under GST law. It is clear that
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ng as assigned to it in clause (h) of section 2 of the Securities Contracts (Regulation) Act, 1956 (42 of 1956); . The definition of Securities as given in clause (h) of section 2 of the Securities Contracts (Regulation) Act, 1956 (42 of 1956) (SCRA) is as follows: (h) securities include- (i)……………… (ia) derivative; ……………… From the above definition of securities , it is clear that securities include derivative. 4.2 Further, Section 2 (ac) of SCRA defines derivative as: derivative – includes (A) …………………………………………..; (B) …………………………………………..; (C) commodity derivatives; and (D) ……………………………………&h
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, or within such period not exceeding eleven days after the date of contract and subject to such conditions as the Central Government may, by notification in the Official Gazette, specify in respect of any goods, the period under such contract not being capable of extension by the mutual consent of the parties thereto or otherwise: Provided that where any such contract is performed either wholly or in part: (i) by realization of any sum of money being the difference between the contract rate and the settlement rate or clearing rate or the rate of any offsetting contract; or (ii) by any other means whatsoever, and as a result of which the actual tendering of goods covered by the contract or payment of the full price therefor is dispensed with, then such contract shall not be deemed to be a ready delivery contract. 4.3 While examining legal provisions to understand the meaning of the Term 'securities' under the SCRA, it becomes important to understand Section 18A of SCRA which la
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es refers to only those contracts which are traded or settled in recognised stock exchange, unless the contracts are notified by the Central Government. By this measure, the claim of the applicant that the closure of purchase/sale of cotton contract by way of settlement between him and the other contracting party in terms of the contract, would be covered under the term 'securities' in the definition of 'services' in Section 2(102) of the CGST Act, 2017 and hence would not entail tax on services, does not seem to be valid. 5.Therefore, while it is forthcoming that legal provisions discussed above do not exclude the closure of purchase/sale of cotton contract by way of settlement between applicant and the other contracting party in terms of the contract from scope of services, and the applicant would therefore be liable to the provisions of Section 9 of the CGST Act, 2017, it is also noteworthy that executive instructions by way of answers to Frequently Asked Questions (
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to GST. Where the settlement takes place by way of net settlement of differential of the forward rate over the prevailing market rate on the settlement date, the same would be falling within the purview of 'securities' as defined in Section 2(101) of the CGST Act, 2017. As securities are neither 'good" nor 'services' as defined in the CGST Act, 2017, future contracts are not chargeable to GST. However, if some service charges or service fees or documentation fees or broking charges or such like fees or charges are charged, the same would be a consideration for supply of service and chargeable to GST. Therefore, it is evident that intention of the Government, evident from the answer to the above FAQ, is not to tax settlements under forward contracts where settlement takes place by way of net settlement of differential of the forward rate over the prevailing market rate on the settlement date. Therefore, we feel that if the executive instruction interprets legal
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as been described in the contract as follows: "Sale Contract – It is discretionary upon the Company to settle/ close the Contract at the rate fixed by it. In this regard, the rate at which the company settles is usually the market rate of cotton prevalent on the Commodities Exchange such as MCX on the day on which such settlement is made. " Purchase Contract- Market rate of cotton prevalent on Commodities Exchange such as MCX on the day on which such settlement is made" 7. It is seen that the settlement rate described by the applicant in sale contract is at variance from the settlement considered to be falling within the purview of securities as defined in Section 2(101) of the CGST Act, 2017 in the answer to FAQ No. 37. In the answer to FAQ No. 37, the settlement was described as differential of the forward rate over the prevailing market rate on the settlement date, while in the sale contract of the applicant, he has discretion to settle/ close the Contract at the rate
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ing to the obligation to refrain from an act, or to tolerate an act or a situation, or to do an act is to be treated as supply of services. 9. In the present case, there is clearly an agreement between the contracting parties to refrain from bringing in arbitration, which is also built in the contract, if the contract is settled by payment of agreed amount of monies. Therefore, this activity can clearly be considered as supply of service by 'agreeing to the obligation to refrain from an act', and would therefore by subject to applicable tax. The present activity is also a toleration of the act of not providing the other party to the contract, the agreed quantity of goods at agreed prices at the agreed date, on payment of agreed amount of monies to settle the contract. Therefore, this would be liable for consideration as supply of service by way of agreeing to the obligation to tolerate an act or a situation. It is also clear that the applicant and the other contracting party ar
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at since the activity of closing contracts by way of settlement was covered under the term 'use of money' in the definition of Services under Section 2(102), and for which a consideration was also being received, it was a service and liable to taxation, The jurisdictional officer also relied upon an Advance Ruling passed by the Maharashtra Authority for Advance Ruling in support of his view. Perusal of the definition of Service in Section 2(102) shows that the specific inclusions which follow the specific exclusions, have to be read completely and not in piecemeal. We feel that the words 'use of money' cannot be read in isolation as has been done by the jurisdictional officer while interpretation of the legal definition of Services. The Advance Ruling passed by the Maharashtra Authority for Advance Ruling was on completely different facts and had nothing in common with the specific question raised by the applicant. Therefore, we feel that the comments of the jurisdictio
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ttlement date, the same would be falling within the purview of 'securities' as defined in Section 2(101) of the CGST Act, 2017and would therefore not be chargeable to GST. (ii) In forward contracts in cotton sales: being settled by M/s. Louis Dreyfus Company India Pvt. Ltd. with the other party to the contract by way of payment of the differential of forward rate and rate fixed by the applicant using his discretion, such rate being different than the market price of cotton on the date of settlement, the same would not be falling within the purview of 'securities' as defined in Section 2(101) of the CGST Act, 2017 and would therefore be chargeable to GST. (iii) In the forward contracts in cotton purchase being settled by M/s. Louis Dreyfus Company India Pvt. Ltd. with the other party to the contract by way of payment of the differential of forward rate and prevailing market rate on the settlement date, the same would be falling within the purview of 'securities'
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2018 (10) TMI 748 – AUTHORITY FOR ADVANCE RULING, ODISHA – 2018 (18) G. S. T. L. 508 (A. A. R. – GST) – Input tax credit – scope of blocked credit – various goods and services used for maintenance of applicant’s township, guesthouse, hospital, horticulture in its ordinary course of business – section 17(5) of CGST Act.
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Whether the applicant is entitled to take input credit of tax paid on various goods and services used for maintenance of applicants’s township, quest houses hospitals and horticulture for paying output tax?
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Held that:- Some of the services are exclusively in relation to the residential colony, some are in relation to the plant, some are in relation to the guest house and transit house, some are for use in residential colony as well as in the plant while some of the services like urban plantation, provision of drinking water at picnic spot, raising of seedling, and general plantation are neither for the plant nor for the residential colony. The applicant migh
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ntial accommodation in the colony, temporary accommodation in the guest houses and is dispensing health services to its employees and others.
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The services which are being availed clearly in relation to the residential colony shall not qualify for input tax credit. On the other hand services received partly in relation to the residential colony and partly in relation to the plant, proportionate ITC to the extent relatable to the plant are available whereas services availed in relation to the residential colony shall not qualify for input tax credit in terms of Sub-section 2 of Section 17.
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Establishment of hospitals and maintenance thereof may be for discharging the statutory obligation under the ESI Act by the employer, but dispensing medical service to the employees and others is a supply of service by the employer (the applicant in this case). Such service being nil rated will fall under exempt supplies. Consequently, the inputs and input services received by the applicant
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ect: GST Act, 2017-Advance Ruling in respect of entitlement to take credit of input tax paid on various goods and services used for maintenance of applicant s township, guesthouse, hospital, horticulture in its ordinary course of business. 1.0 M/S National Aluminium Company Ltd., Nalco Bhawan, PO. Nayapajli, Bhubaneswar- 751013 (hereinafter referred to as Applicant ) assigned with GSTIN number 21AAACN7449M1Z9 have filed an application on 19.07.2018 under Section 97 of CGST Act, 2017, OGST Act, 2017 read with Rule 104 of CGST Rules 2017 & OGST Rules,2017 in Form GST ARA-01 seeking an advance ruling in respect of its entitlement to take credit of input tax paid on various goods and services used for maintenance of applicant s township, guest house, hospital, horticulture in its ordinary course of business. They enclosed copy of challan as proof of payment of ₹ 10,000/bearing CIN No. 18072100016691 dated 10 07.2018 towards the fee for Advance Ruling. After due verification of th
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townships, guest houses, hospitals and horticulture which are received as part of its business operations. The suppliers of such services are charging GST in their invoices. 2.1 That services of management, maintenance and repair in its townships, guest houses, hospitals and horticulture are being used in the course or furtherance of the applicant s business and, therefore. it is entitled to take credit of tax paid on such services as per the provisions of central Goods and Service Tax Act, 2017. 2.2 That it serves the business interest of the applicant having its employees residing in townships and colonies near its factories and offices. It operates guest houses for temporary stay of employees and guests. It runs hospitals for its employees. The management, maintenance and repair service obtained from the service providers for running of these establishments has direct benefit to the business operations of the applicant. Since the services are used in the course of and, also, in fur
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i P.Suna, DGM, Nalco) and the jurisdictional officer of State GST & jurisdictional officer of Central GST appeared in person. Sri P. K. Sahu, Advocate re-iterated the submissions already furnished in the annexures to the application. During personal hearing, the applicant was asked to state a) whether the applicant is into the supply of Health Service, Dwelling/Accommodation service etc b) whether maintenance of township, Guest house, Hospital for the welfare of the employees would be a supply between related parties. Since the said issues were not clarified/explained properly by the applicant the case was adjourned and next date of hearing was fixed on 19 09 2018. The applicant through its Advocate and representatives were heard on the said date in the matter and the contentions advanced were also examined, Sri Sahu, Advocate submitted a fresh written submission pursuant to hearing on 29 08.2018, wherein he inter-alia explained that the applicant was not into the business of provi
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t be held as the supplier of dwelling service or health service to its employees through the residential colonies, guest houses and hospitals since the facilities so provided are without any consideration receivable from the employees (beneficiaries). The facilities so provided are rather part of the CTC (Cost to the Company). It was also averred that the hospital infrastructure has been created in lieu of EIC contribution. It is thus a statutory obligation under the EIC Act discharged by establishing the hospital and maintaining the same. Thus, the services provided through establishment and maintenance of the residential colony, guest house and hospitals are not supply taxable under GST in terms of section 7 of the OGST/CGST Act. 4.0 We have considered the submissions made by the applicant in their application for advance ruling as well as the submissions made by the representatives during personal hearings. We also considered the questions and issues on which advance ruling is sough
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ce of the townships, guest houses, hospitals and horticulture established by the applicant. In fact, ruling on entitlement of input tax credit should be transaction specific and it should not be generalized of course, the applicant has submitted a list of contracts (56 in number as listed in Annexure-A) entered into with different suppliers of goods and services for supply in relation to maintenance of the townships, guest houses, hospitals including horticultural maintenance- At the time of hearing, it was given to understand by the applicant that the list is merely illustrative and not exhaustive meaning thereby the applicant might be entering into similar contracts with other suppliers for similar other supplies, The present ruling is, however, awarded on the supplies as listed in Annexure-A and shall not cover other similar supplies not included in the list. 4.3 Supplies availed by the applicant as per the list in Annexure-A are classified as follows. i) Support Services- These ser
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the equipments in Shaiia Niwas is used partly for residential accommodation for trainee engineers and partly for the general guest house. Services listed at SI.No.52, 53,56, 43, 44, 45, and 46 are clear non-business activities. In fact the aforesaid services relate to plantation in different areas outside the business area of the applicant. This includes urban plantation in Koraput and other similar plantation activities in other areas. These are certainly not in the course of nor in furtherance of the core business of the applicant i.e. mining of bauxite, refining or manufacturing aluminum ingot. Some of the activities seem to be in the course of discharging corporate social responsibilities (CSR), but certainly not in the course of business or furtherance of business. The services listed at Sr No. 54 and 55 i.e. mass plantation at M&R Complex, Nalco, Damanjodi can be held as in the course of business since the applicant is receiving forestry service for plantation within the refi
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of the plant and plant area. The service listed at Si No .08 i.e fogging operation seems to be for the residential colony. Thus, the services classified under this category are found to have been availed partly for residential colony maintenance, partly for hospital maintenance and partly for plant maintenance. iii) Sweeping and snow removal services- Road sweeping work in Nalco Township, Sector i, ii & iii and Saheed Laksman Nayak colony, sweeping work at plant administration building, surakshya vihar, Dr Ambedkar colony. The services listed at SI No.05 is clearly for sweeping work in Nalco township i.e. for maintenance of the residential colony. Conversely the service listed at Sl No.06 seems to be for sweeping of the road in plant administrative building. iv) Security Services/Guard Services- Security Services at Nalco Township, M&R Complex, Demanjodi. The service listed at Sl No. 10 of Annexure-A is found to be for security of the residential colony in Damanjodi. v) Service
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ina Plant. The services listed at SI No.17, 18, 19, 21 and 22 are in relation to the Nalco township end residential colony. The service listed at Sl No.20 is in relation to the Alumina Plant. The service listed at Sl No.23 i.e. provision of drinking water at picnic spot is not at all in the course of or for the furtherance of business. The service listed at Sl No.29 is in relation to the residential colony whereas the service listed at S' No.30 i.e. lighting maintenance of Alumina Plant township at Damnajodi is partly in relation to the plant and partly in relation to the residential colony. The service listed at Si No 31 i e AMC of Power Fencing System is definitely in relation to the security of the plant and hence part of business operation. The services listed at Sl No. 32 arid 33 are in relation to the electrical maintenance of the township and the service listed at Sl. No, 35 is in relation to both the residential colony as well as the plant. The service listed at Sl. No.34 i
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ees. This is a clear case of supply of medicine and other allied pharmaceutical items free of charge or, in other words, frees distribution of medicines. viii) Maintenance and repair services of machinery and equipments-Maintenance of LPG system of Shaila Niwas, Transit House, Damanjodi. The said service is listed at Si No,39. As the heading suggests it is for use in the transit house and GET Hostel. Such establishments are essentially business establishment and not created for use only by the employees. 4.4. The contention of the applicant is that they are having township at Angul, Damanjodi and Bhubaneswar. They run hospitals for their employees. They have also guest houses for accommodating touring employees and guests. They maintain parks and green area in the factories and townships. These infrastructures are necessary for the applicant to run its large-scale business of manufacturing where thousands of employees are working, They are receiving services of management, maintenance
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neither relating to business nor relating to manufacture of final product and its supply. The said activities may be welfare activities undertaken while carrying on the business but to qualify as input service; the activity must have nexus with the business of the applicant. The expression in course or furtherance of business appearing in Section 16(1) of the GST Act refers to activities which are integrally related to the business activity and not welfare activities. b) The activity of maintenance and repair of applicant's residential township / colony, guest house, hospitals including the horticultural activity are broadly used by the employees. The services, availed by the applicant are awarded on contractual basis which ere in the nature of repairs and maintenance of its assets, contained in such township, guest house or hospitals. The residential township or colonies are located outside any factory: The services for maintenance and repairs of these assets includes various acti
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g machines, electrical cocking appliances, electrical fittings and lawns and gardens. The prime purpose of maintenance of guest house for touring employees is welfare. The services for repair and maintenance of building and land of any guest house are primarily done by service providers to whom jobs are awarded under works contract terms. The assets contained in any hospital or dispensary generally covers building, lawns, gardens, parking place, medical instruments, hospital beds and fittings, vehicle and ambulance, furniture, electrical appliances like refrigerator, air conditioning machines, electrical fittings etc. The hospital or dispensary generally renders welfare in the form of health care services of employees in particular and the surrounding society at large. The services for repairs and maintenance of building and land and other assets are primarily done by service providers, to whom jobs are awarded under works contract terms. With reference to the above discussion having g
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by a taxable person for construction of an immovable property (other than plant or machinery) on his own account including when such goods or services or both are used in the course or furtherance of business is blocked. From a plain reading of the provisions of the above referred sub-clauses along with the Explanations, it reveals that the tax credit on input and/or input services received by the applicant for the referred activities are in the form of works contract service, for repairs and maintenance of various immovable property and assets, the input tax credit of which are directly restricted or blocked under specific provision under section 17 of the OGST / CGST Act. c) The hospital / dispensary maintained by the applicant for its employees and society come within the definition of Clinical establishments whose supply is tax exempted under serial 74, heading 9993 of the notification No. 12/2017- Central Tax (Rate) dt. 28th June, 2017. The services rendered by the guest house mai
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some of the services are exclusively in relation to the residential colony, some are in relation to the plant, some are in relation to the guest house and transit house, some are for use in residential colony as well as in the plant while some of the services like urban plantation, provision of drinking water at picnic spot, raising of seedling, and general plantation are neither for the plant nor for the residential colony. The applicant might be doing those activities while discharging some obligation but such activities are not for or in relation to the core business. Some other activities like contract for running a pharmacy outlet simply for dispensing medicine and other allied product free of charge. This is a clear case of supply without consideration mainly to the employees of the applicant. Still some other services like maintaining the power grid is predominantly for use in the plant and maintaining the solid waste treatment plant seems to be for treating the solid waste of t
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made clear that service by an employee to the employer in the course of or in relation to his employment is neither a supply of goods nor a supply of service. There is no converse provision i.e. services provided by an employer to the employees in Schedule III implying thereby services provided by an employer to its employees are supply of services. Possibly, for this confusion, the clarification dated 10th July, 2017 was warranted to clarify that perquisite provided by an employer to an employee in terms of the employment contracts are not chargeable to GST. On the other hand, as per the provisions in Schedule I Para 2 read with the Explanation to Section 15 of the CGST/OGST Act supply of services by an employer to the employees is a supply between related persons. On the other hand, service by way of residential accommodation in the colonies or otherwise is a perquisite which has been clarified as not chargeable to GST implying thereby any perquisite including residential accommodat
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the employer, but dispensing medical service to the employees and others is a supply of service by the employer (the applicant in this case). Such service being nil rated will fall under exempt supplies. Consequently, the inputs and input services received by the applicant for dispensing the exempt service will not qualify for input tax credit in terms of Section 17 (2) of the OGST/CGST Act. It is made clear that the ruling to be issued is based on the current provisions of law. For the sake of further clarification we consider it appropriate to discuss the amendment of Section 17 (5) as brought in the CGST (Amendment) Act, 201 8(yet to be made effective) wherein clause (a) and (b) of sub-section (5) of Section 17 have been substituted with a Proviso in the substituted clause (b) providing for input tax credit in respect of such goods or services or both, where it is obligatory for an employer to provide the same to its employees under any law for the time being in force. In the provis
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ard supply of input and input services for maintenance of the guest house, transit house, and training hostels, but excluding the food and beverages provided in such establishments. Credit of such input services are as such blocked in clause b of Sub section 5 of section 17 of the OGST and CGST Act. In the case of the applicant, the listed services do not contain any catering service, but the application seeks for a ruling even on such service, It is further clarified that, the applicant might not be charging anything from the guest or the trainees for providing food and beverages in the guest houses and training hostels and in such case the inputs used for preparing the food and beverages or input catering services shall not qualify for input tax credit. 5.3 On scrutiny of the services listed in Annexure-A against which the current ruling is being issued, it was found that the applicant is availing services for plantation both inside the plant area as well as outside the plant area. S
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shments like administrative building and guest houses. Services availed in relation to plantation and gardening within the plant area including mining area and the premises of other business establishment as mentioned above will qualify for input service credit Observations on specific contracts as listed in Annexure-A have been made in Para 4.3, 5.4 We have gone through the various judicial pronouncements cited by the applicant in support of his claim. With great respect to the principles of law laid down in those decisions rendered in peculiar facts and circumstances of each case. we have no hesitation to say that the facts of the instant case are different and distinguishable. Some of these decisions are rendered under the Income Tax Act and cannot be inferred in the context of the provisions of the OGST Act / CGST Act. Accordingly, the present ruling is issued by examining the nature and purpose of each of the services listed in Annexure-A with reference to the relent provisions in
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GST – States – ACS/FD/2018 – Dated:- 28-9-2018 – FINANCE SECRETARIAT CIRCULAR No. ACS/FD/2018, Bengaluru, dated: 28th September, 2018 Subt: Guidelines for Deductions and Payments of TDS by the DDOs Of State Government Authorities under GST. Section 51 of the Karnataka Goods and Services Tax(KGST) Act, 2017, Central Goods and Services Tax (CGST) Act, 2017 and Integrated Goods Services Tax (IGST) Act, 2017 provide for deduction of tax by the Government Agencies (Deductor) or any other person as notified in this regard, from the payment made or credited to the supplier (Deductee) of taxable goods or services or both, where the total value of such supply, under a contract, exceeds two lakh and fifty thousand rupees. The amount deducted as tax under this section shall be paid to the Government by deductor within ten days after the end of the month in which such deduction is made alongwith a return in FORM GSTR-7 giving the details of deductions and deductees. Further, the deductor has to i
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which GST was introduced. Government has recently notified that these provisions shall come into force with effect from 1st October, 2018, vide Government of Karnataka Notification No. FD 47 CSL 2017 dated 14.9.2018 and Notification No. 50/2018-Central Tax dated 13th September, 2018 of Government of India. 4. For payment process of Tax Deduction at Source under GST two options can be followed, which are as under: Option I: Generation of challan for every payment made during the month. Option II: Bunching of TDS deducted from the bills on weekly, monthly or any periodic manner. 5. DDOs operating on Khajane 1 shall exercise Option I, selecting OTC cheque mode of payment when generating challan on GST common portal. DDOs operating on Khajane 2 shall exercise Option II, selecting NEFT/RTGS mode of payment with RBI PAD as remitting bank while generating the challan. 6. Under Option I, Treasury shall provide to DDO a cheque for TDS payment against every bill with TDS deduction. For this pur
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payments on a weekly, monthly or any other periodic basis. 8. In order to give effect to the above options from 01.10.2018, a process flow of deduction and payment of TDS by the DDOs has been finalised in consultation with Department of Revenue, Finance Department, Government of India and the Principal Secretary (Khajane 2), Finance Department, Government of Karnataka for guidance and implementation by State Government Authorities. The process flows under both the options are described as under: Option I – Individual Bill-wise Deduction and its payment by the DDO 9. DDOs who are operating on Khajane 1 shall exercise this option. In this option, the DDO will have to deduct as well as remit the GST TDS for each bill individually by generating a Challan with PIN (Common Portal Identification Number) and attaching it with the Bill itself. 10. Following process shall be followed by the DDO in this regard: (i) The DDO shall prepare the Bill based on the Expenditure Sanction. The Expenditure
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n favour of one of the 25 authorized Banks. The Cheque may then be deposited along with the Challan with CPIN with any of branch of the authorized Bank so selected by the DDO. (vii) Upon successful payment, a CIN (Challan Identification Number) will be generated by the RBI/ Authorized Bank and will be shared electronically with the GSTN Portal. This will get credited in the electronic Cash Ledger of the concerned DDO in the GSTN Portal. This can be viewed and the details of CIN can be noted by the DDO anytime on GSTN portal using his Login credentials. (viii) The DDO should maintain a Register as per proforma given in Annexure 'A' to keep record of all TDS deductions made by him during the month. This Record will be helpful at the time of filing Monthly Return (FORM GSTR-7) by the DDO. The DDO may also make use of the offline utility available on the GSTN Portal for this purpose. (ix) The DDO shall generate TDS Certificate through the GST Portal in FORM GSTR-7A after filing of
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oking in the Deposit Account with the Head of Account 8449-00-120-0-xx-662. (v) The DDO will require to maintain the Record of the TDS of GST being booked under the Deposit Head so that at the time of preparing the Challan at the GST Common Portal with CPIN (Common Portal Identification Number) for making payment on weekly/monthly or any other periodic basis, the total amount could be easily worked out. (vi) At any periodic interval, when DDO needs to remit the TDS amount, he will prepare the Challan with CPIN on the GST Common Portal for the amount (already booked under the Deposit Account). (vii) While generating the Challan with CPIN, the DDO will have to select mode of payment as NEFT/RTGS. In the NEFT/RTGS mode, the DDO will have to select the remitting Bank as Reserve Bank of India PAD. GSTN portal shall automatically select beneficiary name as GST, beneficiary account number as CPIN and beneficiary IFSC as RBISOGSTPMT. (viii) In Khajane 2, the DDO shall register GST as a recipie
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n the electronic Cash Ledger of the concerned DDO in the GSTN Portal. This can be viewed and the details of CIN can be noted by the DDO anytime on GSTN portal using his login credentials. (xiii) The DDO should maintain a Register as per proforma given in Annexure 'A' to keep record of all TDS deductions made by him during the month. This Record will be helpful at the time of filing Monthly Return (FORM GSTR-7) by the DDO. The DDO may also make use of the offline utility available on the GSTN Portal for filing the return in Form GSTR-7. (xiv) The DDO shall file the Return in FORM GSTR-7 by 10th of the following month (xv) The DDO shall generate TDS Certificate through the GSTN Portal in FORM GSTR-7A 13. Difficulty, if any, in implementation of this circular may please be brought to the notice of the Director of Treasuries, Finance Department. I.S.N. Prasad Additional Chief Secretary to Government, Finance Department For instance, if the total invoice value is ₹ 118, and th
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GST – States – Leg. 30/2018 – Dated:- 28-9-2018 – HARYANA GOVERNMENT LAW AND LEGISLATIVE DEPARTMENT Notification The 28th September, 2018 No. Leg. 30/2018.- The following Act of the Legislature of the State of Haryana received the assent of the Governor of Haryana on the 24th September, 2018 and is hereby published for general information:- HARYANA ACT NO. 25 OF 2018 THE HARYANA GOODS AND SERVICES TAX (AMENDMENT) ACT, 2018 AN ACT further to amend the Haryana Goods and Services Tax Act, 2017. Be it enacted by the Legislature of the State of Haryana in the Sixty-ninth Year of the Republic of India as follows:- Short title and commencement. 1. (1) This Act may be called the Haryana Goods and Services Tax (Amendment) Act, 2018. (2) Save as otherwise provided, the provisions of this Act shall come into force on such date as the Government may, by notification in the Official Gazette, appoint: Provided that different dates may be appointed for different provisions of this Act and any refere
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rackets and letter clause (c) , the word, brackets and letter clause (b) shall be substituted; (f) in sub-clause (f) of clause (69), after the word and figures article 371 , the words, figures and letter and article 371J shall be inserted; (g) in clause (102),- (i) for the sign ; existing at the end, the sign . shall be substituted; and (ii) the following Explanation shall be added, namely:- Explanation.- For the removal of doubts, it is hereby clarified that the expression services includes facilitating or arranging transactions in securities; . Amendment of section 7 of Haryana Act 19 of 2017. 3. In section 7 of the principal Act,- (a) in sub-section (1),- (i) in clause (b), after the words or furtherance of business; , the word and shall be inserted and shall be deemed to have been inserted with effect from the 1st July, 2017; (ii) in clause (c), after the words a consideration , the word and shall be omitted and shall be deemed to have been omitted with effect from the 1st July, 20
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ion, specify a class of registered persons who shall, in respect of supply of specified categories of goods or services or both received from an unregistered supplier, pay the tax on reverse charge basis as the recipient of such supply of goods or services or both, and all the provisions of this Act shall apply to such recipient as if he is the person liable for paying the tax in relation to such supply of goods or services or both. . Amendment of section 10 of Haryana Act 19 of 2017. 5. In section 10 of the principal Act,- I. in sub-section (1)- (i) for the words and sign in lieu of the tax payable by him, an amount calculated at such rate , the words, sign, brackets and figures in lieu of the tax payable by him under sub-section (1) of section 9, an amount of tax calculated at such rate shall be substituted; (ii) in the proviso,- (a) for the words one crore rupees , the words one crore and fifty lakh rupees shall be substituted; and (b) for the sign . existing at the end, the sign :
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in clause (b), the words, brackets and figure sub-section (2) of shall be omitted. Amendment of section 16 of Haryana Act 19 of 2017. 8. In sub-section (2) of section 16 of the principal Act,- (a) in clause (b), for the Explanation, the following Explanation shall be substituted, namely:- Explanation.- For the purposes of this clause, it shall be deemed that the registered person has received the goods or services, as the case may be- (i) where the goods are delivered by the supplier to a recipient or any other person on the direction of such registered person, whether acting as an agent or otherwise, before or during movement of goods, either by way of transfer of documents of title to goods or otherwise; (ii) where the services are provided by the supplier to any person on the direction of or on account of such registered person. ; (b) in clause (c), for the word and figures section 41 , the words, figures and letter section 41 or section 43A shall be substituted. Amendment of secti
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lowing taxable supplies, namely:- (A) further supply of such vessels or aircraft; or (B) transportation of passengers; or (C) imparting training on navigating such vessels; or (D) imparting training on flying such aircraft; (ii) for transportation of goods; (ab) services of general insurance, servicing, repair and maintenance in so far as they relate to motor vehicles, vessels or aircraft referred to in clause (a) or clause (aa): Provided that the input tax credit in respect of such services shall be available- (i) where the motor vehicles, vessels or aircraft referred to in clause (a) or clause (aa) are used for the purposes specified therein; (ii) where received by a taxable person engaged- (I) in the manufacture of such motor vehicles, vessels or aircraft; or (II) in the supply of general insurance services in respect of such motor vehicles, vessels or aircraft insured by him; (b) the following supply of goods or services or both- (i) food and beverages, outdoor catering, beauty tre
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10. In section 20 of the principal Act, in clause (c) to the Explanation, for the words and figures under entry 84 , the words, figures and letter under entries 84 and 92A shall be substituted. Amendment of section 22 of Haryana Act 19 of 2017. 11. In section 22 of the principal Act,- (a) in sub-section (1),- (i) in the proviso, for the sign . existing at the end, the sign : shall be substituted; and (ii) after the proviso, the following proviso shall be added, namely:- Provided further that where such person makes taxable supplies of goods or services or both from a special category State in respect of which the Central Government has enhanced the aggregate turnover referred to in the first proviso, he shall be liable to be registered if his aggregate turnover in a financial year exceeds the amount equivalent to such enhanced turnover. ; (b) in clause (iii) to the Explanation, after the word Constitution , the words and signs except the State of Jammu and Kashmir and States of Arunac
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roviso shall be substituted, namely:- Provided that a person having multiple places of business in the State may be granted a separate registration for each such place of business, subject to such conditions, as may be prescribed. . Amendment of section 29 of Haryana Act 19 of 2017. 14. In section 29 of the principal Act,- (a) in the marginal heading after the word Cancellation , the words or suspension shall be inserted; (b) in sub-section (1),- (i) in clause (c), for the sign . existing at the end, the sign : shall be substituted; and (ii) after clause (c), the following proviso shall be added, namely:- Provided that during pendency of the proceedings relating to cancellation of registration filed by the registered person, the registration may be suspended for such period and in such manner, as may be prescribed. ; (c) in sub-section (2),- (i) in the proviso, for the sign . existing at the end, the sign : shall be substituted; and (ii) after the existing proviso, the following provis
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ion (3), the following sub-section shall be substituted, namely:- (3) Where one or more tax invoices have been issued for supply of any goods or services or both and the taxable value or tax charged in that tax invoice is found to be less than the taxable value or tax payable in respect of such supply, the registered person, who has supplied such goods or services or both, shall issue to the recipient one or more debit notes for supplies made in a financial year containing such particulars, as may be prescribed. . Amendment of section 35 of Haryana Act 19 of 2017. 16. In sub-section (5) of section 35 of the principal Act,- (i) for the sign . existing at the end, the sign : shall be substituted; and (ii) the following proviso shall be added, namely:- Provided that nothing contained in this sub-section shall apply to any department of the Central Government or a State Government or a local authority, whose books of account are subject to audit by the Comptroller and Auditor General of In
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feguards as may be specified therein. ; (b) in sub-section (7),- (i) for the sign . existing at the end, the sign : shall be substituted; and (ii) the following proviso shall be added, namely:- Provided that the Government may, on the recommendations of the Council, notify certain classes of registered persons who shall pay to the Government the tax due or part thereof as per the return on or before the last date on which he is required to furnish such return, subject to such conditions and safeguards as may be specified therein. ; (c) for sub-section (9), the following sub-section shall be substituted, namely:- (9) Subject to the provisions of sections 37 and 38, if any registered person after furnishing a return under sub-section (1) or sub-section (2) or sub-section (3) or sub-section (4) or sub-section (5) discovers any omission or incorrect particulars therein, other than as a result of scrutiny, audit, inspection or enforcement activity by the tax authorities, he shall rectify su
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n section 41, section 42 or section 43, the procedure for availing of input tax credit by the recipient and verification thereof shall be such, as may be prescribed. (3) The procedure for furnishing the details of outward supplies by the supplier on the common portal, for the purposes of availing input tax credit by the recipient shall be such, as may be prescribed. (4) The procedure for availing input tax credit in respect of outward supplies not furnished under sub-section (3) shall be such, as may be prescribed and such procedure may include the maximum amount of the input tax credit which may be so availed, not exceeding twenty per cent of the input tax credit available, on the basis of details furnished by the suppliers under the said sub-section. (5) The amount of tax specified in the outward supplies for which the details have been furnished by the supplier under sub-section (3) shall be deemed to be the tax payable by him under the provisions of the Act. (6) The supplier and th
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of 2017. 19. For sub-section (2) of section 48 of the principal Act, the following sub-section shall be substituted, namely:- (2) A registered person may authorise an approved goods and services tax practitioner to furnish the details of outward supplies under section 37, the details of inward supplies under section 38 and the return under section 39 or section 44 or section 45 and to perform such other functions, in such manner, as may be prescribed. Amendment of section 49 of Haryana Act 19 of 2017. 20. In section 49 of the principal Act,- (a) in sub-section (2), for the word and figures section 41 , the words, figures and letter section 41 or section 43A shall be substituted; (b) in clause (c) of sub-section (5),- (i) for the sign ; , the sign : shall be substituted; and (ii) the following proviso shall be added, namely:- Provided that the input tax credit on account of State tax shall be utilized towards payment of integrated tax only where the balance of the input tax credit on ac
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the case may be, towards payment of any such tax. . Amendment of section 52 of Haryana Act 19 of 2017. 22. In sub-section (9) of section 52 of the principal Act, for the word and figures section 37 , the words and figures section 37 or section 39 shall be substituted. Amendment of section 54 of Haryana Act 19 of 2017. 23. In section 54 of the principal Act,- (a) in sub-section (8), for clause (a), the following clause shall be substituted, namely:- (a) refund of tax paid on export of goods or services or both or on inputs or input services used in making such exports; ; (b) in clause (2) of the Explanation,- (i) in item (i) of sub-clause (c), after the words foreign exchange , the words or in Indian rupees wherever permitted by the Reserve Bank of India shall be inserted; (ii) for sub-clause (e), the following sub-clause shall be substituted, namely:- (e) in the case of refund of unutilized input tax credit under clause (ii) of the first proviso to sub-section (3), the due date for fur
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-section (6) of section 129 of the principal Act, for the words seven days occurring twice, the words fourteen days shall be respectively substituted. Amendment of section 143 of Haryana Act 19 of 2017. 28. In the proviso to clause (b) of sub-section (1) of section 143 of the principal Act,- (i) for the sign . existing at the end, the sign : shall be substituted; and (ii) after the proviso, the following proviso shall be added, namely:- Provided further that the period of one year and three years may, on sufficient cause being shown, be extended by the Commissioner for a further period not exceeding one year and two years respectively. . Amendment of Schedule I to Haryana Act 19 of 2017. 29. In Schedule I to the principal Act, in paragraph 4, the word taxable shall be omitted. Amendment of Schedule II to Haryana Act 19 of 2017. 30. In Schedule II to the principal Act, in the heading, after the word ACTIVITIES , the words OR TRANSACTIONS shall be inserted and shall be deemed to have bee
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2018 (10) TMI 314 – CESTAT NEW DELHI – 2018 (362) E.L.T. 885 (Tri. – Del.) – Clandestine removal – demand based on the basis of unexplained loose sheets – whether in the facts and circumstances of the case, charge of clandestine removal is sustainable against the appellants or not?
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Held that:- In this case during the course of investigation, in the factory premises of the appellant, nothing incriminating was found. Moreover, the stocks of raw material as well as finished goods has also found tallied with the statutory records. There are certain loose sheets recovered from the residence of the Director of the appellant company and on the basis of this, the case has been made out against the appellant.
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On going through the said loose sheet, it is found that some name i.e. M. Vijayvada is written thereon but to ascertain the truthness of said clearance, no effort has been made by the Revenue to investigate or to find out who is M. Vijayvada. If that effort could have been do
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d equivalent amount of penalty and penalty of ₹ 50,000/- has been imposed on the co-appellant Shri Ashok Agarwal, Director of the company. 2. The facts of the case are that on being received intelligence that the appellants are availing SSI exemption but their turnover has crossed more than ₹ 2 crores in the financial year 2013-2014, therefore, a search was conducted at the factory premises of the appellant on 29/09/2014, nothing incriminating was found during the course of search in the factory premises and all the stocks of inputs/finished goods were found in order, but during the course of search at the residence of the Director of the appellant company, certain loose sheets were found. Out of these loose sheets, some loose sheets remained unexplained by the Director of the appellant company. Therefore, on the basis of unexplained loose sheets, it was proposed that appellant is engaged in the activity of clandestine removal of goods without issuance of the invoice and no
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nd is not sustainable. He also submits that the son of the Director has filed an affidavit explaining these loose sheets, in question, and owned the same and his own responsibility and these loose sheets written by him, but no credence was given to the affidavit, in that circumstances, the demand is not sustainable. To support his contention, the learned Counsel relied on the decisions of Modern Laboratories vs. CCE, Indore – 2017 (358) E.L.T. 1179 (Tri. – Del.) and Davinder Sandhu Impex Ltd. vs. CCE, Ludhiana – 2016 (337) E.L.T. 99 (Tri. – Del.). 4. On the other hand, learned AR opposed the contention of the learned Counsel and submits that in this case the Director himself has admitted during the course of investigation that the loose sheets recovered from the possession of the Director at the residence belongs to the clandestine removal of goods and was ready to pay duty thereon, therefore, without retraction of the said statement, the same is admissible as held by this Tribunal in
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On going through the said loose sheet, I find that some name i.e. M. Vijayvada is written thereon but to ascertain the truthness of said clearance, no effort has been made by the Revenue to investigate or to find out who is M. Vijayvada. If that effort could have been done, then truth could have been revealed. Simply, on the basis of these loose sheets and without any corroborative evidence, i.e. from where the raw material has been procured, how the goods were transported and how much electricity was consumed it cannot be alleged that the appellant is engaged in the activity of clandestine removal of goods. Merely, the corroborative statement of the Director of the appellant company cannot be the basis in the clandestine removal of the goods in the light of the decision of this Tribunal in the case of Davinder Sandhu Impex Ltd. (supra), wherein it has been held that the incriminating statement relied upon by the Revenue is not admissible evidence in the absence of corroborative evide
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2018 (10) TMI 309 – AUTHORITY FOR ADVANCE RULINGS WEST BENGAL – 2018 (18) G. S. T. L. 49 (A. A. R. – GST) – Classification – services or goods? – Determination of SAC or HSN? – Service of printing Question Papers for Educational Institutions – Service to such Educational Institutions relating to conduct of examination – Levy of GST – Rate of GST – input tax credit.
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Whether the Question Papers supplied by the Applicant are “goods” or “services”? – Held that:- As stated in the Application and in the arguments of the Applicant at the time of Personal Hearing the content of the matter printed referred to above, is being provided to the Applicant, and to print the same, i.e to convert the matter into a tangible form, necessary raw material, manpower and machinery is being provided by the Applicant. In other words, the content of the printed matter is specific to the customer, and, neither is the matter pre-printed, nor has the Applicant any ownership to the content at any point of ti
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of the GST Tariff is found to be appropriate.
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Benefit of exemption – Held that:- Serial No. 66(b)(iv) of Notification No. 12/2017–CT(Rate) dated 28/06/2017, as amended from time to time, as applicable, wholly exempts services provided to an Educational Institution relating to conduct of examination. The phrase „relating to’ expands the scope of this entry to include such support services without which conduct of the examination is not possible, unless they are specifically mentioned under any other entry. Question papers can have no use other than in conducting a specific examination, and the supply of service of printing such question papers is a supply related to conduct of that examination – Explanation (iv) to Notification No. 12/2017-CT (Rate) dated 28/06/2017, inserted vide Notification No. 14/2018-CT(Rate) dated 26/07/2018, clarifies that the Central and State Educational Boards shall be treated as Educational Institution for the limited purpose of services by way of cond
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dated 28/06/2017, as amended, as applicable, the Applicant is not eligible to avail of Input Tax Credit.
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Ruling:- Service of printing Question Papers for Educational Institutions [as defined under clause 2(y) read with Explanation (iv) to Notification No. 12/2017-CT (Rate) dated 28/06/2017] for specific examination is classifiable under SAC 9992.
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Service to such Educational Institutions relating to conduct of examination, as described in 66(b)(iv) of Notification No.12/2017-CT(Rate) dated 28/06/2017, includes supply of the service of printing question papers, and is exempt under the GST Act.
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Being an exempt supply, the Applicant cannot claim credit of the GST paid on the inputs used for provisioning the service of printing question papers provided to the Boards / Educational Institutions relating to conduct of examination. This Ruling is valid subject to the provisions under Section 103(2) until and unless declared void under Section 104(1) of the GST Act.
– 18/WBAA
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objection to admission of the Application. The Application is, therefore, admitted. 2. The Application states that the Applicant is registered under HSN 4901 under GST and is providing services by way of printing question papers for various examinations, conducted by the Council of Higher Secondary Education of various States, Joint Entrance Boards, various UGC granted Universities in India and by various authorities of vocational educations. The Councils/Boards/Universities/Institutions are supplying the matter to be printed to the Applicant, who is providing the paper, ink, other inputs, manpower, machinery, etc to print the given matter in appropriate question paper format as provided by the Councils/Boards/Universities/Institutions supplying the matter. The Application also states that the Applicant s customers, being either Government organisations or Government aided organisations, are not paying GST on the services so provided, which is rendering them unable to take credit on th
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of the question raised in the Application under what HSN or SAC code is the GST to be charged it is, therefore, necessary to consider whether question papers are to be considered as goods or, if not, if the act of printing the question paper, albeit with the supply of necessary raw material, manpower and machinery being provided by the Applicant, is to be considered as service . 4. Section 7 of the GST Act lays down the conditions for scope of supply, both for goods and services. Under sub-section (1), consideration, or in the absence of any consideration, Schedules I and II to Section 7, are to be referred to in order to determine whether or not the supply is of goods or of services . Under sub-section (2) conditions, (as listed in Schedule III to Section 7 or undertaken by Governments or authorities and local bodies as may be notified by the Government, on recommendations of the Council) under which the supply is to be considered as neither goods nor services are laid down. Under su
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matter into a tangible form, necessary raw material, manpower and machinery is being provided by the Applicant. In other words, the content of the printed matter is specific to the customer, and, neither is the matter pre-printed, nor has the Applicant any ownership to the content at any point of time, and, therefore, cannot transfer title of the above printed matters. In other words, Question Papers are not the property of the Applicant. Furthermore, the Question Papers supplied by the Applicant to their customers are not marketable commodities in the open market and as goods they have no legitimate value to persons other than the specific customer who provides the input content. The Applicant, therefore, cannot be said to be supplying Question Papers as goods under the GST Act, but to be supplying the service of printing. Hence, the SAC is to be determined and not the HSN. Again, every transaction is a contract, but open market transactions in Question Papers as goods, being illegal,
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rial no. 27 of Notification No. 11/2017-CT (Rate) dated 28/06/2017, as amended from time to time, provided the materials being printed are goods classifiable under Chapter 48 or 49 of the Tariff Act and taxable under the GST Act. As transactions in Question Papers as goods is beyond the ambit of the GST Act, they are neither classifiable under Chapter 48 or 49 nor taxable under the GST Act. Service of printing Question Papers is not, therefore, classifiable under Heading 9989. 8. Section 9 of the GST Tariff-Services deals with Community, Social and Personal Services and other miscellaneous services which include Education Services (covering services related to admission to or conduct of examination by Educational Institutions) under Heading 9992. Since the Applicant has specified the printing of question papers for Educational Institutions, supply of service under Section 9 of the GST Tariff is found to be appropriate. 9. GST Rates for services whether or not exempt are governed by Not
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the supply of service of printing such question papers is a supply related to conduct of that examination. Explanation (iv) to Notification No. 12/2017-CT (Rate) dated 28/06/2017, inserted vide Notification No. 14/2018-CT(Rate) dated 26/07/2018, clarifies that the Central and State Educational Boards shall be treated as Educational Institution for the limited purpose of services by way of conducting examinations. Serial No. 66(b)(iv) above, therefore, includes services provided to such Boards relating to the conduct of examinations. The Applicant is, therefore, not liable to pay tax on the service of printing question papers provided to the Educational Boards/Councils/Universities/Institutions relating to the conduct of examination. 11. Section 17(2) of GST Act states that Where the goods or services or both are used by the registered person partly for effecting taxable supplies including zero-rated supplies under this Act or under the Integrated Goods and Services Tax Act and partly
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2018 (10) TMI 254 – DELHI HIGH COURT – 2018 (19) G. S. T. L. 578 (Del.) – Sealing of Business Premises – petitioner’s grievance is that the sealing of its business premises on behalf of the Delhi Goods and Services Tax (DGST), ostensibly under Section 67 of the Central Goods and Services Tax Act, 2017, is illegal – It is claimed that the authorization does not name the assessee; it only lists the two premises i.e. the business premises at Netaji Subhash Place and the DSIDC Unit at Narela.
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Held that:- Given the plain text of the statute i.e. especially Section 69(4), which merely authorizes the concerned officials to search the premises and if resistance is offered, break-open the lock or any other almirah, electrical device, box, etc. containing books and documents, the complete sealing of the premises, in the opinion of the court is per se illegal. Even if it were assumed that the respondents temporarily restrained the petitioner from using its premises, for a few hours, till
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es Tax Act, 2017, is illegal. The brief facts are that the petitioner is a registered dealer, which trades inter alia in PVC raisins and other food items such as beverages. The petitioner alleges that its premises were visited by the Revenue authorities on 29.08.2018 when the DGST officials directed production of books of accounts and other documents. Since the petitioner was not in possession of those, it sought 24 hours time for the same. Apparently a temporary sealing of the premises was ordered. On the next date i.e. 30.08.2018, the premises were completely sealed. It is contended that the DGST lacks statutory power and authorization to indefinitely seal the premises in a manner it has proceeded to do so. Learned counsel for the DGST, appearing on advance notice, submitted that till date the petitioner has not cooperated as it has neither produced the books of accounts nor other materials. It is further submitted that according to the instructions available to them, the premises ca
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the business of transporting goods or the owner or the operator of warehouse or godown or any other place. (2) Where the proper officer, not below the rank of Joint Commissioner, either pursuant to an inspection carried out under sub-section (1) or otherwise, has reasons to believe that any goods liable to confiscation or any documents or books or things, which in his opinion shall be useful for or relevant to any proceedings under this Act, are secreted in any place, he may authorise in writing any other officer of central tax to search and seize or may himself search and seize such goods, documents or books or things: Provided that where it is not practicable to seize any such goods, the proper officer, or any officer authorised by him, may serve on the owner or the custodian of the goods an order that he shall not remove, part with, or otherwise deal with the goods except with the previous permission of such officer: Provided further that the documents or books or things so seized s
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GST INS-I relied upon by the Revenue states as follows : Government of National Capital Territory of Delhi Department of Trade & Taxes Enforcement Branch Vyapar Bhawan, I.P. Estate, New Delhi-02 No.72 Date : 29/08/2018 FORM GST INS-1 AUTHORISATION FOR INSPECTION OR SEARCH [See rule 139(1)] To, Sh. Ajay Chaturvedi, Asstt. Commissioner (E-1) Whereas information has been presented before me and I have reasons to 'believe that- (i) 405, 4th Floor, KLJ Tower, Netaji Subhash Place, New Delhi. has suppressed transactions relating to supply of goods and /or services has suppressed transactions relating to the stock of goods in hand has claimed input tax credit in excess of his entitlement under the Act has claimed refund in excess of his entitlement under the Act has indulged in contravention of the provisions of this Act or rules made thereunder to evade tax under this Act. OR Goods liable to confiscation/ documents relevant to the proceedings under the Act are secreted in the busine
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ent and for fine under the Act read with section 179, 181, 191 and 418 of the Indian Penal Code . Given under my hand & seal this 29th day of August, 2018. Valid for 03 Day(s). It is claimed that the authorization does not name the assessee; it only lists the two premises i.e. the business premises at Netaji Subhash Place and the DSIDC Unit at Narela. Given the plain text of the statute i.e. especially Section 69(4), which merely authorizes the concerned officials to search the premises and if resistance is offered, break-open the lock or any other almirah, electrical device, box, etc. containing books and documents, the complete sealing of the premises, in the opinion of the court is per se illegal. Even if it were assumed that the respondents temporarily restrained the petitioner from using its premises, for a few hours, till the books of accounts are made available in order to secure the evidence available in the premises, that could not have assumed the life on its own , at lea
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Special Procedure for filing outward supplies in GSTR-1 for suppliers whose aggregate turnover is up to 1.50 crore rupees in the preceding financial year or the current financial year – Furnishing of Quarterly returns – July,2018 to March,2019- Extension of time. – GST – States – G.O.MS.No. 496 – Dated:- 28-9-2018 – GOVERNMENT OF ANDHRA PRADESH REVENUE (COMMERCIAL TAXES-II) DEPARTMENT G.O.MS.No. 496 Dated: 28-09-2018 NOTIFICATION In exercise of the powers conferred by section 148 of the Andhra Pradesh Goods and Services Tax Act, 2017 (Act No.16 of 2017), the Government, on the recommendations of the Goods and Services Tax Council, hereby notify the registered persons having aggregate turnover of up to 1.5 crore rupees in the preceding fina
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GST – States – G.O.MS.No. 497 – Dated:- 28-9-2018 – GOVERNMENT OF ANDHRA PRADESH REVENUE (COMMERCIAL TAXES-II) DEPARTMENT G.O.MS.No. 497 Dated: 28-09-2018. NOTIFICATION In exercise of the powers conferred by section 148 of the Andhra Pradesh Goods and Services Tax Act, 2017 (16 of 2017) (hereafter in this notification referred to as the said Act), and in supercession of – (i) GOMs No. 562, Revenue(CT-II) Dept., dated 24th November,2017 ; and (ii) GOMs No.496, Revenue (CT-II) Dept., dated: 28th September, 2018. except as respects things done or omitted to be done before such supercession, the Government, on the recommendations of the Goods and Services Tax Council, hereby notifies the registered persons having aggregate turnover of up to 1
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ctober, 2018 2 October – December, 2017 31st October, 2018 3 January – March, 2018 31st October, 2018 4 April – June, 2018 31st October, 2018 5 July – September, 2018 31st October, 2018 6 October – December, 2018 31st January, 2019 7 January – March, 2019 30th April, 2019 Provided that the details of outward supply of goods or services or both in FORM GSTR-1 for the quarter from July, 2018 to September, 2018 by- (i) registered persons in the State of Kerala; (ii) registered persons whose principal place of business is in Kodagu district in the State of Karnataka; and (iii) registered persons whose principal place of business is in Mahe in the Union territory of Puducherry shall be furnished electronically through the common portal, on or be
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GST – States – CCW/GST/74/2015 – Dated:- 28-9-2018 – Government of Andhra Pradesh Commercial Taxes Department Office of the Chief Commissioner of State Tax Andhra Pradesh, Eedupugallu,Vijayawada CIRCULAR CCT's Ref.No.CCW/GST/ 74/2015 Dated :28.09.2018 Sub – APGST Rules, 2017- Rule 142(5)-Demands in Form GST DRC 07 to be uploaded Electronically-Certain Instructions-Reg The officers of the CT department have been conducting check of vehicular traffic and whenever irregularities are noticed. taxes 'viz SGST.CGST or IGST and penalties are collected. During shop inspections, whenever any irregularities such as tax not paid or short paid or ITC claimed wrongly etc are noticed demands are raised and taxes and penalties are collected. Even
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rm GST DRC 07 to be accessed through APTis. There are main heads of Demands from which one should be selected A. CVT (Sec 129); B-CVT(Sec 130); C-SI (Sec 67)- sec 73; D-SI (Sec 67)-sec 74; E-Sec 125: F-Others Besides, the following options. can be selected (more than one possible) 1. classification 2. Valuation 3. Rate of Tax 4. Suppression of T.O. 5. Excess ITC claimed 6. Place of Supply. 7 Excess Refund released. All the field officers are required to enter the particulars of demands raised after the introduction of GST, duly following the above procedure. All the Joint Commissioner(ST)s are requested to ensure that all Enforcement and Refund related demands already raised and to be raised are entered in Form GST DRC 07 without fail Sd/-
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GST – States – 1426-F.T. – Dated:- 28-9-2018 – GOVERNMENT OF WEST BENGAL FINANCE DEPARTMENT REVENUE NOTIFICATION No. 1426-F.T. Howrah, the 28th day of September, 2018. No. 23/2018-State Tax (Rate) In exercise of the powers conferred by sub-section (3) of section 11 of the West Bengal Goods and Services Tax Act, 2017 (West Ben. Act XXVIII of 2017), the Governor, on the recommendations of the Council, and on being satisfied that it is necessary so to do for the purpose of clarifying the scope and
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2018 (10) TMI 141 – GUJARAT HIGH COURT – TMI – Vires of Rule 96(10)(b) of Central Goods and Service Tax Rules – Refund of IGST in case of export / Zero rated supplies – Validity of subordinate legislation giving retrospective effect to the amended provision by virtue of which, upon export of goods, the duty which is already refunded, would have to be paid back to the Government.
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Held that:- Notice returnable on 17.10.2018. Direct service to respondent No.3 is permitted. – R/SPECIAL CIVIL APPLICATION NO. 15091 of 2018 Dated:- 28-9-2018 – MR AKIL KURESHI AND MR B.N. KARIA, JJ. For The PETITIONER : MR S N SOPARKAR, SR ADV WITH MR UCHIT N SHETH (7336) ORAL ORDER (PER : HONOURABLE MR.JUSTICE AKIL KURESHI) 1. Leave to amend. 2. Petitioner
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Goods and Services Tax – 67/41/2018-DOR – Dated:- 28-9-2018 – Circular No. 67/41/2018-DOR F.No.S.31011/11/2018-ST-I-DoR Government of India Ministry of Finance Department of Revenue *** New Delhi, Dated the 28th September, 2018 To, 1. Secretaries of the Central Ministries as pe list enclosed. 2. Chief Secretaries of all States/UTs with legislature/ UTs without Legislature. 3. All Finance Secretaries/ CCTs of the States/ UTs with Legislature/UTs without Legislature. 4. Chairman CBIC /All Principal Chief Commissioners/ Chief Commissioners/ Principal Commissioners/ Commissioners of Central Tax (through Member, GST, CBIC) 5. Pr.Chief Controller of Accounts, CBIC. Madam/Sir, Subject: Modification to the Guidelines for Deductions and Deposits of
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Goods and Services Tax – 13/2018 – Dated:- 28-9-2018 – MINISTRY OF FINANCE (Department of Revenue) NOTIFICATION No. 13/2018-Union Territory Tax New Delhi, the 28st September, 2018 G.S.R. 941(E).-In exercise of the powers conferred by sub-section (1) of Section 22 read with Section 21 of Union Territory Goods and Services Tax Act, 2017 (14 of 2017), Section 20 of the Integrated Goods and Services Tax Act, 2017 (13 of 2017) and sub-section (1) of Section 52 of the Central Goods and Services Tax A
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Goods and Services Tax – 12/2018 – Dated:- 28-9-2018 – MINISTRY OF FINANCE (Department of Revenue) NOTIFICATION No. 12/2018-Union Territory Tax New Delhi, the 28st September, 2018 G.S.R. 940(E).- In exercise of the powers conferred by sub-section (1) of Section 22 read with Section 21 of Union Territory Goods and Services Tax Act, 2017 (14 of 2017) and sub-section (1) of Section 52 of the Central Goods and Services Tax Act, 2017 (12 of 2017), the Central Government, on the recommendations of th
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2018 (9) TMI 1770 – AUTHORITY FOR ADVANCE RULINGS, WEST BENGAL – 2018 (17) G. S. T. L. 687 (A. A. R. – GST) – Classification of goods – Polypropylene Leno Bags – Applicant is of the opinion that the PP Leno Bags manufactured is classifiable under Tariff Head 63053300 of the GST Tariff which is aligned to the First Schedule of the Customs Tariff Act, 1975.
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Held that:- To be included in Chapter 63, the width of the tapes, manufactured from Plastics or articles thereof of Chapter 39, used to weave the fabric should be less than or equal to 5mm and should not be impregnated, coated, covered or laminated with plastics or articles thereof, of chapter 39 – From the explanatory notes and clarification provided for determination of classification of goods it is seen that two more factors are to be considered, namely, the width of the tape used in the weaving and whether or not there is a layer/lining in these bags. The specifications of the PP Leno Bags being manufactured by the Applican
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strips or the like of width not exceeding 5 mm and without any impregnation, coating, covering, or lamination with plastics, are to be classified under Tariff Sub Heading 63053300. – ARN No. 20 of 2018 – 19/WBAAR/2018-19 – Dated:- 28-9-2018 – SHRI VISHWANATH AND SHRI PARTHASARATHI DEY MEMBER Applicant s representative heard Sri Vinay Kumar Shraff, Advocate 1. The Applicant stated to be, inter alia, a manufacturer of Polypropylene Leno Bags seeks a Ruling on Classification of the above goods under the CGST/WBGST Acts, 2017 (hereinafter referred to as the the said GST Act ). Advance Ruling is admissible under Section 97(2)(a) of the said GST Act. The Applicant submits that the question raised in the Application has neither been decided by nor is pending before any authority under any provisions of the GST Act. The officer concerned raises no objection to the admission of the Application. The Application is, therefore, admitted. 2. The Application states that the Applicant manufactures Po
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cant is of the opinion that the PP Leno Bags manufactured is classifiable under Tariff Head 63053300 of the GST Tariff which is aligned to the First Schedule of the Customs Tariff Act, 1975 (hereinafter referred to as the the said Tariff Act ). 3. The Applicant submits copies of the reports of test conducted by the Central Institute of Plastic Engineering & Technology dated 15.05.2018, the Indian Institute of Packaging dated 09.05.2018 and Registration of Technical Textile Unit viz. RLJ Woven Sacks Pvt. Ltd under RR-TUFS from Ministry of Textiles, dated 27/03/2015. The Applicant also submits a copy of IS 16187:2014 issued by the Bureau of Indian Standards, providing specifications for HDPE/PP Leno Woven Sacks for Packaging and Storage of fruits and vegetables. Since the above reports are specific to the samples provided by the Applicant to that particular Institute and also because it is clearly stated in the reports of Central Institute of Plastic Engineering & Technology and
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covers articles for the conveyance or packing of goods, of plastics; stoppers, lids, caps and other closures, of plastics, namely, sacks and bags (including cones) made of plastics other than polymers of ethylene but not of poly (vinyl chloride). Tariff Sub Heading 63053300 under the GST Tariff covers sacks and bags, of a kind used for packing of goods, made, not of jute or of other textile bast fibres of Heading 5303, but of manmade textile materials which are not flexible intermediate bulk containers but are of polyethylene or polypropylene strip or the like. The product PP Leno Bags, if described as only such, can be placed under either Tariff Code if merely these Tariff descriptions are referred to. However, it is to be seen if PP Leno bags have any variation in their composition or specification which may have a bearing on the Tariff Code under which the product is placed. It is, thus, obvious, that to correctly determine the classification of the product explanatory notes and cla
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ics, or articles thereof, of chapter 39 8. Thus, to be included in Chapter 63, the width of the tapes, manufactured from Plastics or articles thereof of Chapter 39, used to weave the fabric should be less than or equal to 5mm and should not be impregnated, coated, covered or laminated with plastics or articles thereof, of chapter 39. 9. The Application states that the Applicant manufactures PP Leno Bags, as well as PP Woven Sacks, which are used, or may be used for packing a variety of materials. The inputs, the manufacturing process and the type of looms used for the manufacture of these Bags are the same. 10. From the explanatory notes and clarification provided for determination of classification of goods it is seen that two more factors are to be considered, namely, the width of the tape used in the weaving and whether or not there is a layer/lining in these bags. The specifications of the PP Leno Bags being manufactured by the Applicant, therefore, become an important feature for
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ps and the like that qualifies as man-made textile materials. Only those PP strips and the like are considered as textile materials width of which do not exceed 5 mm [refer to Note 1(g) to Section XI of the Tariff Act]. 14. The above-mentioned Tariff head is not applicable if the sacks made from PP woven fabric are impregnated, coated, covered or laminated with plastics or articles of plastics covered under Chapter 39 [Note 1(h) to Section XI]. In view of the foregoing, we rule as under: RULING PP Leno Bags , if specifically made from woven Polypropylene fabric using strips or the like of width not exceeding 5 mm and without any impregnation, coating, covering, or lamination with plastics, are to be classified under Tariff Sub Heading 63053300. This Ruling is valid subject to the provisions under Section 103 until and unless declared void under Section 104(1) of the GST Act. – Case laws – Decisions – Judgements – Orders – Tax Management India – taxmanagementindia – taxmanagement – ta
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