Goods and Services Tax

2018 (9) TMI 1769 – AUTHORITY FOR ADVANCE RULINGS, WEST BENGAL – TMI – Classification of Supply – supply of goods or services – Levy of GST – Supply of printed question papers for various examinations conducted by the Government/Government aided Educational Boards/ Councils/Universities etc – Input Tax Credit on inputs used for provisioning the supply.
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Whether GST is to be charged on such supply and, if so, at what rate and under what HSN or SAC code is the GST to be charged?
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Whether credit of the GST paid on the inputs used for provisioning the supply can be availed?
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Held that:- No Notification has been issued regarding the status of supply of Question Papers. Hence, Section 7(3) of the GST Act is not relevant for consideration. The Applicant has neither been notified to be an authority under Section 7(2) of the GST Act, nor is the activity of supplying printed question papers listed in the said Schedule III. Section 7(1) along with the relevant portions of Schedul

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r the purpose of the GST Act, is also not applicable in such cases – The service is taxable under serial 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.
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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 condu

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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. – 19 of 2018 – 18/WBAAR/2018-19 – Dated:- 28-9-2018 – VISHWANATH AND PARTHASARATHI DEY MEMBER Applicant s representative Sri Tirthankar Banerjee, Advocate 1. The Applicant, stated to be, inter alia, supplier of printed question papers for various examinations conducted by the Government/Government aided Educational Boards/ Councils/Universities etc is seeking a Ruling on whether GST is to be charged on such supply and, if so, at what rate and under what HSN or SAC code is the GST to be charged? The Applicant also wants to know whether credit of the GST paid on the inputs used for provisioning the supply can be availed. Advance Ruling is admissible on these questions under Sections 97(2)

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s 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 the GST paid during purchase of inputs. 3. It is necessary to determine whether the Question Papers supplied by the Applicant are goods or services before considering the other questions on which Ruling has been sought. Under Section 2(52) of the GST Act, goods is defined as every kind of movable property other than money and securities but includes actionable claims, growing crops, grass and things attached to or forming part of the land which are agreed to be severed before supply or under a contract of supply . Property is not defined under the GST Act. However, the lexicon meaning of property is a thing or things belonging to someone. Under Section 2(102) of the GST Act, serv

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ervices . 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 sub-section (3) it is stated that the Government may, on recommendations of the Council, specify, by notification, whether certain transactions are to be treated as supply of goods or services. 5. No Notification has been issued regarding the status of supply of Question Papers. Hence, Section 7(3) of the GST Act is not relevant for consideration. The Applicant has neither been notified to be an authority under Section 7(2) of the GST Act, nor is the activity of supplying printed question papers listed in the said Schedule III. Section 7(1) along with the relevant portions of Schedules I and II clearly state that transfer of title in goods is a supply of goods and in the absence

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nt. 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, are not enforceable by law and void contracts in terms section 2(g) of the Indian Contract Act, 1872, and, therefore, beyond the ambit of the GST Act. It follows that classification under the Tariff Act, for the purpose of the GST Act, is also not applicable in such cases. 7. The Applicant is procuring the inputs required for provisioning the service of printing Question Papers. The content for printing, of course, is provided by the Boards / Institutions. The Applicant does not hold the right to the property of the printed question papers. The Boards/ Institutions prepare the question papers for conducting examinations and also fix the format in which the applicant is require

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onduct 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 Notifications No. 11/2017-CT (Rate) and 12/2017-CT (Rate) dated 28/06/2017, as amended from time to time. No exemption is granted for supply of printing services to Government/Government aided Educational Boards/Councils/Universities/Institutions merely by virtue of being Government/Government-aided Institutions. Notification No. 12/2017-CT.(Rate) dated 28/06/2017, however, deals with Educational Board/Councils/Universities etc whether or not they are Government/ Government-aided. 10. 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 con

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ies/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 for effecting exempt supplies under the said Acts, the amount of credit shall be restricted to so much of the input tax as is attributable to the said taxable supplies including zero-rated supplies. Since the supply of Question Papers to Educational Institutions if provided, for a particular examination is an exempt supply under Serial No. 66(b)(iv) of Notification No. 12/2017-CT (Rate) dated 28/06/2017, as amended, as applicable, the Applicant is not eligible to avail of Input Tax Credit. In view of the foregoing we rule as under RULING a) Service of printing Question Papers for Educational Institutions [as defined under clause 2(y) read with Explanation (iv) to Notification No

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DGFT – Amendments to Foreign Trade Policy 2015-2020 – Extension of Integrated Goods and Service Tax (IGST) and Compensation Cess exemption under Advance Authorisation, EPCG and EOU scheme upto 31.03.2019. – TMI Updates – Highlights

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Goods and Services Tax – Implementation of Tax Deduction at Source (TDS) under GST – TMI Updates – Highlights

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Goods and Services Tax – Levy of GST – Marg Sudharan Shulk – charged and collected by applicant for the maintenance of forest road, from non government, private and commercial vehicles engaged in mini

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Goods and Services Tax – Input Tax Credit (ITC) for providing leasing services – goods and services used for erection of infrastructure to which fibre cables are connected – The infrastructure provide

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Goods and Services Tax – ITC of GST paid on Works Contract Service received by the Applicant for maintenance contract of building shall not be available to them in terms of clause (d) of Section 17(5) of the GST Act 2017. – TMI Updates – Highlights

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Goods and Services Tax – ITC of GST paid on goods purchased for the purpose of maintenance of Mall such as Vitrified Tiles, Marble, Granite, ACP Sheets, Steel Plates, TMT Tor (Saria), Bricks, Cement,

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Goods and Services Tax – Profiteering – contravention of the provisions of Section 171 of the CGST Act, 2017 – Benefit of reduction in the rate of tax by lowering the price of “Maybelline FIT Me found

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Central Excise – Refund claim – Once the GST regime is in force, the pending refund claim, if sanctioned, will necessarily have to be paid in cash irrespective of the fact whether the refund amount pe

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Goods and Services Tax – Started By: – Vinod Maheswari – Dated:- 27-9-2018 Last Replied Date:- 30-10-2018 – I have a query regarding section 143(5) which says Notwithstanding anything contained in sub-sections (1) and (2), any waste and scrap generated during the job work may be supplied by the job worker directly from his place of business on payment of tax, if such job worker is registered, or by the principal, if the job worker is not registered Now if Job worker is registered and if he is paying some consideration to principal for that waste and scrap than whether Principal is exempt from raising invoice to Job worker and can ask Job worker to supply waster and scrap and pay relevant tax according to section 143(5).(Its means it will b

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(5) overwrite these sub section power so how can we say Principal has to compulsory raise invoice for waste & Scrap. Please comments – Reply By Adarsh Gupta – The Reply = Refer para 9.4 (ii) & 9.4 (iii) of circular..it is clear, I don't see any ambiguity. – Reply By Vinod Maheswari – The Reply = Sir in case of supply of Input or capital goods from place of jobworker there is no doubt that principal has to issue invoice but in case of waste & scrap generated during process of such input & capital goods law is providing special section 143(5) which overwrite power of section 143(1) and (2) which talks only about of supply of input or capital goods and not about waste and scrap . So According to section 143(5) in my view jo

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Goods and Services Tax – Started By: – ashok dalmia – Dated:- 27-9-2018 Last Replied Date:- 26-10-2018 – My client is trading in EXEMPT goods. The transportation charges are paid to TRANSPORTER directly and many a times to the GTA who is arranging the Trucks. But in all cases the TRANSPORT vehicle papers copy, PAN details of owner of truck, drivers driving licence . and declaration from owner of less than 10 trucks, is supplied to us by the GTA / transporter.Would like to know, the Status of RCM paid on supply of those EXEMPT goods.??whether leviable though no consignment note is given by GTA or TRANSPORTER and payment directly credited in either the GTA bank account for onward payment to transporter or else directly in the Truck owner acc

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PROVIDER OR OWNER TRANSPORTER AND what would be the status of THOSE expenses booked.Whether those will be treated as GTA services provided.There are two ways in payment is made.one the in account of GTA service provider amount is deposited for onward payment to truckowner… no consignment note or any document provided by GTA.. he only provides the vehicle ownership papers, pan number of vehicle owner and driver driving licence number etc.second is direct deposit in account of vehicle owner.. and same documents..The goods are exempt or taxable… does have materiality aspect in the sense… in one case we need to treat the RCM (if leviable as cost to person who pays the transportation charges) and in another case where the goods are taxable

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Goods and Services Tax – GST – By: – CA.Tarun Agarwalla – Dated:- 27-9-2018 Last Replied Date:- 30-9-2018 – At the advent of Not. No. 50/2018 – Central Tax Dated 13.09.2018, the following exposition has been drawn out to present a comprehensive picture in regards to the law and the practice of deducting tax at source in so far as the Goods and Services Tax. The exposition has been divided into two parts: 1. The Law surrounding TDS 2. The practice to be followed for necessary compliance with the Law The above has been elaborated as follows: 1. The Law surrounding TDS: A. Background:-The provisions of tax deduction at source is contained under section 51 of the CGST Act, 2017. The same was held in abeyance and not brought into force. As of 13.09.2018 the Notification No. 50/2018 – Central Tax notified the 1stday of October 2018 to be the day sec. 51 of the CGST Act, 2017 assumes legal force. Section 51 comes under the Chapter X Payment of Tax which deals with the manner of payment of GS

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fifty-one per cent or more participation by way of equity or control, to carry out any function. e. Society established by the Central Government or State Government or local authority under the Societies Registration Act, 1860 f. Public sector undertakings. C. Manner and quantum of deduction:-The above-mentioned persons are, hereinafter referred to as deductor, are required to deduct tax at the rate of 1% CGST and 1% SGST on the taxable value of goods or services or both. a. At the time of payment made or credited to the supplier (deductee) of taxable goods or services or both, b. Where the total value of supply, under a single contract, exceeds two lakh fifty thousand rupees, the deduction is to be made. i. e. Single contract value above ₹ 2.5 Lakh and above. c. Value for the purpose would be basic taxable value, i. e. excluding CGST, SGST, IGST, UTGST and cess charged. d. Only when the supplier (deductee) is registered in the concerned state and the place of supply is also in

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e the value of supply credited prior to 01.10.2018 but payment made on or after 01.10.2018, or vice versa, it seems that in both the cases TDS to be deducted. b. The supply must be taxable under the law. i. e. exempted supplies does not attract TDS. c. From the law, it seems that IGST transactions are beyond the preview of current compliances. d. In case the supplier is not registered, it seems that the TDS may not be made. e. The single contract value of greater than ₹ 2.5 Lakh would be considered, even though the contract period may extend to different tax periods and year. TDS would be deducted at the time of each invoice or payment. f. Further, it can be reasonably derived that once the TDS made on credit basis, no TDS at the tie of respective payment. However, when a particular payment could not be linked to a single invoice, suitable co-relation to be maintained to safeguard the correctness of time of deduction. g. Mr A of Delhi got an order from WB government to supply cer

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ithin three days of application. Step: 2 Deduct GST @ 1% CGST & 1% SGST (i.e. as correctly charged by the inward supplier in his Tax Invoice) from the Basic Value of the Bill. The rate of TDS is to be computed on the value of supply excluding the GST amount. The deduction is to be at the time of payment to the supplier or crediting his account. However, two broad conditions for deductions are: a. The supply should be a taxable supply of goods or services or both. b. The total value of the contract exceeds ₹ 2,50,000/- Step: 3 The amount that has been so deducted is to be deposited with the respective Government within 10 days from the end of the month in which such deduction is made. Such payment to the Govt. shall be made by debiting the electronic cash ledger. Further, the deductor is required to furnish a return in form GSTR-7 electronically along with all necessary details. The return cannot be filed without full payment of the liability. Copy of form GSTR-7 has been encl

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2018 (12) TMI 1603 – SIKKIM HIGH COURT – 2018 (18) G. S. T. L. J216 (Sikkim) – The Chief Commissioner and the Senior Joint Commissioner, Large Tax Payer Unit, GST, Government of West Bengal, shall be impleaded as party Respondents in the present proceeding – Application is allowed. – WP (C) No. 36 of 2017 Dated:- 27-9-2018 – MRS. MEENAKSHI MADAN RAI AND MR. BHASKAR RAJ PRADHAN, JJ. For Petitioners : Mr. Karma Sonam Lhendup, Advocate. Ms. Tashi Doma Sherpa, Advocate. For Respondents : Mr. B. K. Gupta Advocate, Mr. Thinlay Dorjee Bhutia, Government Advocate, Mr. S. K. Chettri Assistant Government Advocate, Mrs. Pollin Rai Assistant Government Advocate, Ms. Karma Yangchen Bhutia, Advocate, Mr. Manish Kr. Jain, Advocate, Ms. Ranjeeta Kumari, Advocate ORDER I.A. No.01 of 2017 and I.A. No.05 of 2018 I.A. No.01 of 2017 and I.A. No.05 of 2018 are not pressed by Learned Counsel for the Petitioners. In the circumstance, I.A. No.01 of 2017 and I.A. No.05 of 2018 stand disposed of. I.A No.10 of

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ST Council under the Constitution and keeping in mind the federal structure of the Constitution neither the Union of India nor any State can give preference to one State over the other. It is also pleaded that the impugned Notifications have been passed on the recommendations of the GST Council. The application under consideration states that the GST Council is a statutory body whose duty has been enumerated as making recommendations to the Union and the States on inter alia (a) the taxes, cesses and surcharges levied which may be subsumed in the GST (b) the goods and services that may be subjected to or exempted from the GST and (c) special provision with respect to the States of Arunachal Pradesh, Assam, Jammu & Kashmir, Manipur, Meghalaya, Mizoram, Nagaland, Sikkim, Tripura, Himachal Pradesh and Uttarakhand. It is further submitted that the Respondent No.2 in its counter affidavit has annexed the minutes of the 18th meeting of the GST Council and it is alleged that the submissio

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following allegations against Senior Joint Commissioner, Large Tax Payer Unit, GST, as well as Chief Commissioner of Goods and Services Tax, West Bengal in the following manner:- 6. That on 08.02.2018, the representative of Petitioner No.1 after being verbally summoned to the office of the Senior Joint Commissioner, Large Tax Payer Unit, GST, directed the representatives of the Petitioner No.1 to ask their Director, Mr. S. Martin to be present before him on 12.02.2018 and 13.02.2018. On both these occasions, the Director of the Petitioner No.1 was present, where the Director was pressurized to forthwith deposit the amount of GST that according to the Senior Joint Commissioner, Large Tax Payer Unit, GST had fallen due under the impugned Act and the notifications, at the rate of 28%. All his fervent pleas for keeping in abeyance the issue of GST till final adjudication in the instant writ petition were brushed aside and finally on 15.02.2018, the Petitioner No.1 agreed to pay the GST. 7.

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s against Petitioners and hence the Chief Commissioner of Goods and Service tax, West Bengal and the Senior Joint Commissioner, Large Tax Payer Unit, GST have become proper and necessary parties for the purpose of adjudication of the instant writ. The affidavit in opposition filed on behalf of the Respondent No.1 and the GST Council merely states that the averments made therein except for those matter of records are not accepted. The State of West Bengal through the Finance Secretary is Respondent No.7 in the Writ Petition. The Petitioner seeks a prayer to hold and declare that the provisions of serial No.6 of Schedule III read with Section 7 (2) of the State Goods and Services Tax Act, 2017 (SGST Act) of the State of West Bengal exempting actionable claims as activities or transactions which shall be treated neither as supply of goods nor a supply or service but not excluding lottery from such exemption is unconstitutional, illegal and non-est as lotteries cannot at all be subjected t

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2018 (12) TMI 532 – AUTHORITY FOR ADVANCE RULING, MAHARASHTRA – 2019 (20) G. S. T. L. 498 (A. A. R. – GST) – Levy of GST – Separate registration is required or not – raising of invoice from Mumbai Head Office for imports received at Haldia Port Kolkata where there is no separate GST Registration – place of supply – mention of GSTIN of Mumbai and Dispatch place of Haldia Port in e-way bill – Held that:- Firstly, since the applicant will be importing the goods into India as per Section 7(2) of the IGST Act, 2017, such supply of goods imported into India shall be treated as supply of goods in the course of Inter State Trade or commerce – Secondly in respect of goods imported into India, as per Section 11(a) Of the IGST Act, 2017, the place of supply shall be the location of the importer and in the present case since the importer is registered in Mumbai, the place of supply shall be Mumbai, Maharashtra.
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In the present case, the place of supply is the location of the importer who is

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orter the place of supply for the applicant in this case will be Mumbai, and the goods also will be cleared on the name of the Mumbai registered address while paying IGST at the time of Customs Clearance, it would follow that they can do the further transaction mentioning the GSTIN of their Mumbai office – they can do the transaction on Mumbai Head Office GSTIN and can mention the GSTIN of Mumbai Head Office in the E-way Bill and dispatch place as Customs Warehouse, Kolkata.
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Ruling:- The procedure to raise the invoice from Mumbai Head Office for imports received at Haldia Port Kolkata where there is no separate GST Registration and Charging of IGST from Mumbai to our Customers is correct – For this transaction, no separate registration in the State of West Bengal is required.
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It is correct to Mention the GSTIN of Mumbai and Dispatch place of Haldia Port in e-way bill. – GST-ARA-48/2018-19/B-123 Dated:- 27-9-2018 – SHRI B.V. BORHADE, AND SHRI PANKAJ KUMAR, MEMBER PROCEEDIN

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ace of Haldia Port ? At the outset, we would like to make it clear that the provisions of both the CGST Act and the MGST Act are the same except for certain provisions. Therefore, unless a mention is specifically made to such dissimilar provisions, a reference to the CGST Act would also mean a reference to the same provision under the MGST Act. Further to the earlier, henceforth for the purposes of this Advance Ruling, a reference to such a similar provision under the CGST Act / MGST Act would be mentioned as being under the GST Act . 02 FACTS AND CONTENTION – AS PER THE APPLICANT The submissions, as reproduced verbatim, could be seen thus- Statement of relevant facts having a bearing on the question(s) raised Sonkamal Enterprises Private Limited is a Company having its Head office at Mumbai and a Branch in Gujarat – Gandhidham, Both are Registered Under the GST Act. We are importer of Chemicals especially phenol which we currently import at JNPT Port, Maharashtra and Kandla Port, Guja

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efore place of supply is west Bengal as per section 1 of IGST act 2017. Since we are only registered at Maharashtra and are supplying the goods on our Maharashtra GST TIN Registration number for this transaction, so it is an interstate supply of goods as defined in Section 7(3) of the IGST Act 2017 and therefore the transaction attracts IGST. Hence We are not required to have separate GST registration in the state of West Bengal. Additional submissions According to Section 22 of the CGST Act, Every Supplier is liable to be registered under this Act in the State from where he makes a taxable supply of goods or services or both. Thus as per our understanding registration is required in the state from which taxable supplies are made. Registration is not required in the State to which taxable supplies are made. It is important to identify the origin of supply even though GST is a destination based tax. Tax goes to the destination-state but registration is required in the Origin-State. so t

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en we get any orders from customers for delivery, the terms of delivery will be Ex-Terminal (i.e., the ownership and its respective risks and rewards will be transferred to our customer the moment goods are cleared from the customs port and we will cease to have control over the goods at that point). The material Will be transported directly from that port to Customers in Kolkata or in any other states. The Tax Invoice will be raised From Mumbai H.O. with Mumbai GSTIN levying IGST. As we will not be storing any goods within the state of West Bengal, in our opinion the location of Supplier would be the customs bonded warehouse and we will not be required to have registration in West Bengal. WRITE UP FOR THE PRACTICE TO BE FOLLOWED AND PRE GST PRACTICE FORR THE SAID TRANSACTION: There is no Pre GST practice in this case, as transaction is to be undertaken for the 1st time at Kolkata port. The Practice that we are intending to follow is : We will import the goods at Kolkata port in the na

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rt Foreign Supplier Invoice ii) Bill of Lading iii) Packing List iv) Certificate of origin v) Bill of Entry vi) Duty Payment Challan paid by Mumbai Branch with Mumbai GSTIN if the goods are cleared by us and stored at port warehouse and in other cased bill of entry and duty payment challan will be in the name of our customers who have cleared the goods. Documentation for Outward Supply of Good: i) Tax Invoice levying IGST From Mumbai Branch with Mumbai GSTIN ii) E Way bill only in case where Movement is made by us iii) In case of Highseas/Bond Transfer sales – Supply Agreement will be made and maintained properly. 03. CONTENTION – AS PER THE CONCERNED OFFICER The submission, as reproduced verbatim, could be seen thus- M/s. Sonkamal Enterprises Pvt. Ltd., 47, 602, Sunil Enclave, Periera Hill Road, Off. Andheri Kurla Road, Cinemagic Theatre, Andheri (East), Mumbai 400099 (here in after referred to as the applicant ) has filed above detailed application under Section 98 of the Central Goo

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Maharashtra and Kandla Port, Gujarat. They wish to import the Chemicals at Haldia Port (Kolkata, West Bengal). They are storing goods at rented Customs Warehouse at Haldia Port, they do not have any establishment or place of operation in State of West Bengal, they endeavour to clear the goods from that warehouse (Ex Bond) in the name of their Mumbai Head Office so here importation will be completed by payment of Customs Duty in Mumbai Head Office Name and they want to sell the goods to customers in West Bengal and other states nearby from that warehouse and charge IGST to their customers by raising bill from Mumbai and not West Bengal. They do not have any godown in the state of West Bengal and will not have any other godown or storage facility in the state other than the Haldia Port Customs Warehouse. 3. In point No.16 of the application, the applicant has stated and interpreted that they will be supplying Goods to their customers in West Bengal from Customs Warehouse situated at Kol

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of issuance of e-way bill is it correct to Mention the GSTIN of Mumbai and Dispatch place of Haldia Port?. 5. The applicant in Point No.15 of the application have stated that they wish to import the Chemicals at Haldia Port(Kolkata, West Bengal) and store the same at rented Customs Warehouse at Haldia Port and they do not have any establishment or place of operation in State of West Bengal. The applicant in Point No.16 of the application, have stated that they will be supplying Goods to their customers in West Bengal from Customs Warehouse situated at Kolkata. 6. Since, the applicant wish to import Chemicals viz. goods at Haldia Port (Kolkata, West Bengal), the nature of supply of goods is an interstate supply of goods as defined in Section 7(2) of the IGST Act, 2017 because Section 7(2) deals with Supply of goods imported into the territory of India and not Section 7(3) of the IGST Act, 2017, as claimed by the applicant, as it pertains to Supply of Services. Secondly, the place of Sup

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e completed by payment of Customs Duty and IGST. Since the applicant is an importer, the place of Supply of Goods shall be the location of the importer as per Section 11 (a) of IGST Act,2017. Further, the applicant does not have any office in West Bengal as per the application and the goods will be cleared from rented Custom Warehouse(Ex bond) at Haldia. As per Section 22(1) of CGST Act, 2017, Every supplier shall be liable to be registered under this Act in the State or Union territory, other than special category States, from where he makes a taxable supply of goods or services or both, if his aggregate turnover in a financial year exceeds twenty lakh rupees:…. In this case, the applicant makes a taxable supply of goods from Mumbai Head Office, as he does not have any office in the State of West Bengal as per his applicant. Hence, place from where the supplier makes a taxable Supply of Goods shall be the location of the supplier i.e Mumbai Head Office. since the applicant do n

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aphs, the question framed by the applicant in Point No.14, (i) whether the procedure to raise the invoice from Mumbai Head Office for imports received at Haldia Port, Kolkata where they do not have any separate GST Registration and Charge IGST from Mumbai to our Customers is correct? Or do they have to take separate Registration in the State of West Bengal for the below mentioned transactions, the answer is they need not take separate Registration in the State of West Bengal . (ii) If they do not need separate registration in West Bengal, can they do the transaction on Mumbai Head Office GSTIN, then in case of issuance of e-way bill is it correct to Mention the GSTIN of Mumbai and Dispatch place of Haldia Port?, the answer appears to be positive i.e. the applicant need not take separate registration in West Bengal and they can do the transaction on Mumbai Head Office GSTIN and it appears to be correct to mention the GSTIN of Mumbai Head Office in the E-way Bill and dispatch place as Cu

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OBSERVATIONS We have gone through the facts of the case, documents on record and submissions made by both, the applicant as well as the department. The applicant, an importer of chemicals is a Company having its Head office at Mumbai and a Branch in Gujarat – Gandhidham, both the offices being registered under the GST Laws. They are wanting to import the Chemicals at Haldia Port (Kolkata, West Bengal) on their own but with Mumbai Head Office GSTIN. After import the goods will be stored at the rented Customs Bonded warehouse at Haldia Port. They do not have any establishment or place of operation or any godown or GSTIN in the State of West Bengal and after importation, want to clear the goods from that warehouse (Ex Bond) in the name of their Mumbai Head Office. They want to sell such imported goods to customers in West Bengal and other States nearby from that warehouse and charge IGST by raising bills/invoices from Mumbai and not from West Bengal. The terms of delivery Will be Ex-Termi

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remost, since the applicant will be importing the goods into India as per Section 7(2) of the IGST Act, 2017, such supply of goods imported into India shall be treated as supply of goods in the course of Inter State Trade or commerce. Secondly in respect of goods imported into India, as per Section 11(a) Of the IGST Act, 2017, the place of supply shall be the location of the importer and in the present case since the importer is registered in Mumbai, the place of supply shall be Mumbai, Maharashtra. Chapter VI of the CGST Act, 2017, consisting of Sections 22 to 30 deals with registration under GST. Section 22 speaks of persons who are liable for registration and as per Section 22 (1) Every supplier shall be liable to be registered under this Act in the State or Union territory, other than special category States, from where the makes a taxable supply of goods or services or both, if …………………………. In the present case a

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efore they need not take separate registration in the State of West Bengal. This would answer their first question mentioned above. Now we deal with the second question raised by the applicant, which is mentioned above. In view of the discussions made in respect of question no. 1, we find that, since as an importer the place of supply for the applicant in this case will be Mumbai, and the goods also will be cleared on the name of the Mumbai registered address while paying IGST at the time of Customs Clearance, it would follow that they can do the further transaction mentioning the GSTIN of their Mumbai office. Hence we are of the opinion that they can do the transaction on Mumbai Head Office GSTIN and can mention the GSTIN of Mumbai Head Office in the E-way Bill and dispatch place as Customs Warehouse, Kolkata. 05. In view of the extensive deliberations as held hereinabove, we pass an order as follows : ORDER (under section 98 of the Central Goods and Services Tax Act, 2017 and the Mah

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GST – States – 853/2018/10(120)/XXVII(8)/2018/CT-41 – Dated:- 27-9-2018 – Government of Uttarakhand Finance Section-8 NOTIFICATION September 27, 2018 No. 853/2018/10(120)/XXVII(8)/2018/CT-41 – WHERES, the State Government is satisfied that it is expedient so to do in public interest, Now THEREFORE, in exercise of the powers conferred by section 128 of the Uttarakhand Goods and Services Tax Act, 2017 (06 of 2017), the Governor, on the recommendations oi the Council, is pleased to allow to waive

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GST – States – 855/2018/15(120)/XXVII(8)/2018/CT-48 – Dated:- 27-9-2018 – Government of Uttarakhand Finance Section-8 NOTIFICATION September 27, 2018 No. 855/2018/15(120)/XXVII(8)/2018/CT-48 – In exercise of the powers conferred by section 164 of the Uttarakhand Goods and Services Tax Act, 2017 (06 of 2017) read with section 21 of Uttar Pradesh General Clause Act, 1904 (Act No. 1 of 1904) (as applicable in the State of Uttarakhand), the Governor is pleased to make the following rules to further amend the Uttarakhand Goods and Services Tax Rules, 2017, namely:- The Uttarakhand Goods and Services Tax (Ninth Amendment) Rules, 2018 1. Short title and Commencement 1 . These rules may be called the Uttarakhand Goods and Services Tax (Ninth Amend

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GST – States – 857/2018/16(120)/XXVII(8)/2018/CT-49 – Dated:- 27-9-2018 – Government of Uttarakhand Finance Section-8 NOTIFICATION September 27, 2018 No. 857/2018/16(120)/XXVII(8)/2018/CT-49 – In exercise of the powers conferred by section 164 of the Uttarakhand Goods and Services Tax Act, 2017 (06 of 2017) read with section 21 of Uttar Pradesh General Clause Act, 1904 (Act No. 1 of 1904) (as applicable in the State of Uttarakhand), the Governor is pleased to make the following rules to further amend the Uttarakhand Goads and Services Tax Rules, 2017, namely:- The Uttarakhand Goods and Services Tax (Tenth Amendment) Rules, 2018 1. Short title and Commencement (1) These rules may be called the Uttarakhand Goods and Services Tax (Tenth Amendment) Rules, 2018. (2) They shall come into force from the 13th day of September, 2018. 2. Insertion of FORM In Forms of the Uttarakhand Goods and Services Tax Rules, 2017 (hereinafter referred to as the principal rules), after FORM GSTR-9A, the foll

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nt but are not permissible under GST (+) G Turnover from April 2017 to June 2017 (-) H Un-billed revenue at the end of Financial Year (-) I Un-adjusted Advances at the beginning of the Financial Year (-) J Credit notes accounted for in the audited Annual (-) Financial Statement but are not permissible under GST K Adjustments on account of supply of goods by SEZ units to DTA Units (-) L Turnover for the period under composition scheme (-) M Adjustments in turnover under section 15 and rules thereunder (+/-) N Adjustments in turnover due to foreign exchange fluctuations (+/-) O Adjustments in turnover due to reasons not listed above (+/-) P Annual turnover after adjustments as above <Auto> Q Turnover as declared in Annual Return (GSTR9) R Un-Reconciled turnover (Q – P) AT1 6 Reasons for Un – Reconciled difference in Annual Gross Turnover A B C Reason 1 <<Text>> Reason 2 <<Text>> Reason 3 <<Text>> 7 Reconciliation of Taxable Turnover A Annual turn

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gt; <Auto> <Auto> Total amount paid as declared in Annual Return (GSTR 9) Un-reconciled payment of amount PT 1 10 Reasons for un-reconciled payment of amount A B C Reason 1 <<Text>> Reason 2 <<Text>> Reason 3 <<Text>> 11 Additional amount payable but not paid (due to reasons specified under Tables 6,8 and 10 above) To be paid through Cash Description Taxable Value Central tax State tax/UT tax Integrated tax Cess, if applicable 1 2 3 4 5 6 5% 12% 18% 28% 3% 0.25% 0.10% Interest Late Fee Penalty Others (please specify) Pt.IV Reconciliation of Input Tax Credit (ITC) 12 Reconciliation of Net Input Tax Credit (ITC) A ITC availed as per audited Annual Financial Statement for the State/ UT (For multi-GSTIN units under same PAN this should be derived from books of accounts) B ITC booked in earlier Financial Years claimed in current Financial Year (+) C ITC booked in current Financial Year to be claimed in subsequent Financial Years (-) D ITC avai

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nse 2 R Total amount of eligible ITC availed <<Auto>> S ITC claimed in Annual Return (GSTR9) T Un-reconciled ITC ITC 2 15 Reasons for un – reconciled difference in ITC A Reason 1 <<Text>> B C Reason 2 <<Text>> Reason 3 <<Text>> 16 Tax payable on un-reconciled difference in ITC (due to reasons specified in 13 and 15 above) Description Amount Payable Central Tax State/UT Tax Integrated Tax Cess Interest Penalty Pt.V Auditor's recommendation on additional Liability due to non-reconciliation To be paid through Cash Description Value Central tax State tax/UT tax Integrated tax Cess, if applicable 1 2 3 4 5 6 5% 12% 18% 28% 3% 0.25% 0.10% Input Tax Credit Interest Late Fee Penalty Any other amount paid for supplies not included in Annual Return (GSTR-9) Erroneous refund to be paid back Outstanding demands to be settled Other (Pl. specify) Verification: I hereby solemnly affirm and declare that the information given herein above is true and

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with the turnover as declared in the Annual Return furnished in FORM GSTR-9 for this GSTIN. The instructions to fill this part are as follows :- Table No. Instructions 5A The turnover as per the audited Annual Financial Statement shall be declared here. There may be cases where multiple GSTINs (State-wise) registrations exist on the same PAN. This is common for persons / entities with presence over multiple States. Such persons / entities, will have to internally derive their GSTIN wise turnover and declare the same here. This shall include export turnover (if any). It may be noted that reference to audited Annual Financial Statement includes reference to books of accounts in case of persons / entities having presence over multiple States. 5B Unbilled revenue which was recorded in the books of accounts on the basis of accrual system of accounting in the last financial year and was carried forward to the current financial year shall be declared here. In other words, when GST is payable

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here. 5F Trade discounts which are accounted for in the audited Annual Financial Statement but on which GST was leviable(being not permissible) shall be declared here. 5G Turnover included in the audited Annual Financial Statement for April 2017 to June 2017 shall be declared here. 5H Unbilled revenue which was recorded in the books of accounts on the basis of accrual system of accounting during the current financial year but GST was not payable on such revenue in the same financial year shall be declared here. 5I Value of all advances for which GST has not been paid but the same has been recognized as revenue in the audited Annual Financial Statement shall be declared here. 5J Aggregate value of credit notes which have been accounted for in the audited Annual Financial Statement but were not admissible under Section 34 of the Uttarakhand GST Act shall be declared here. 5K Aggregate value of all goods supplied by SEZs to DTA units for which the DTA units have filed bill of entry shall

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between the turnover reported in the Annual Return (GSTR-9) and turnover reported in the audited Annual Financial Statement due to reasons not listed above shall be declared here. 5Q Annual turnover as declared in the Annual Return (GSTR 9) shall be declared here. This turnover may be derived from Sr. No. 5N, 10 and 11 of Annual Return (GSTR 9). 6 Reasons for non-reconciliation between the annual turnover declared in the audited Annual Financial Statement and turnover as declared in the Annual Return (GSTR 9) shall be specified here. 7 The table provides for reconciliation of taxable turnover from the audited annual turnover after adjustments with the taxable turnover declared in annual return (GSTR-9). 7A Annual turnover as derived in Table 5P above would be auto-populated here. 7B Value of exempted, nil rated, non-GST and no-supply turnover shall be declared here. This shall be reported net of credit notes, debit notes and amendments if any. 7C Value of zero rated supplies (includin

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(GSTR9). The instructions to fill this part are as follows :- Table No. Instructions 9 The table provides for reconciliation of tax paid as per reconciliation statement and amount of tax paid as declared in Annual Return (GSTR 9). Under the head labelled RC supplies where tax was paid on reverse charge basis by the recipient (i.e. the person for whom reconciliation statement has been prepared) shall be declared. 9P The total amount to be paid as per liability declared in Table 9A to 9O is auto populated here. 9Q The amount payable as declared in Table 9 of the Annual Return (GSTR-9) shall be declared here. It should also contain any differential tax paid on Table 10 or 11 of the Annual Return (GSTR 9). 10 Reasons for non-reconciliation between payable / liability declared in Table 9P above and the amount payable in Table 9Q shall be specified here. 11 Any amount which is payable due to reasons specified under Table 6, 8 and 10 above shall be declared here. 6. Part IV consists of reconc

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cial Year 2017-18. 12C Any ITC which has been booked in the audited Annual Financial Statement of the current financial year but the same has not been credited to the ITC ledger for the said financial year shall be declared here. 12D ITC availed as per audited Annual Financial Statement or books of accounts as derived from values declared in Table 12A, 12B and 12C above will be auto-populated here. 12E Net ITC available for utilization as declared in Table 7J of Annual Return (GSTR-9) shall be declared here. 13 Reasons for non-reconciliation of ITC as per audited Annual Financial Statement or books of account (Table 12D) and the net ITC (Table12E) availed in the Annual Return (GSTR-9) shall be specified here. 14 This table is for reconciliation of ITC declared in the Annual Return (GSTR-9) against the expenses booked in the audited Annual Financial Statement or books of account. The various sub-heads specified under this table are general expenses in the audited Annual Financial Statem

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shall also recommend if there is any other amount to be paid for supplies not included in the Annual Return. Any refund which has been erroneously taken and shall be paid back to the Government shall also be declared in this table. Lastly, any other outstanding demands which is recommended to be settled by the auditor shall be declared in this Table. 8. Towards, the end of the reconciliation statement taxpayers shall be given an option to pay their taxes as recommended by the auditor. PART – B- CERTIFICATION I. Certification in cases where the reconciliation statement (FORM GSTR-9-C) is drawn up by the person who had conducted the audit: * I/we have examined the- (a) balance sheet as on ……… (b) the *profit and loss account/income and expenditure account for the period beginning from ………..…to ending on ……., and (c) the cash flow statement for the period beginning from ……..…to ending on ……&

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3. (b) *I/we further report that, – (A) *I/we have obtained all the information and explanations which, to the best of *my/our knowledge and belief, were necessary for the purpose of the audit/ information and explanations which, to the best of *my/our knowledge and belief, were necessary for the purpose of the audit were not provided/partially provided to us. (B) In *my/our opinion, proper books of account *have/have not been kept by the registered person so far as appears from*my/ our examination of the books. (C) I/we certify that the balance sheet, the *profit and loss/income and expenditure account and the cash flow Statement are *in agreement/not in agreement with the books of account maintained at the Principal place of business at ……………………and ** ……………………additional place of business within the State. 4. The documents required to be furnished under section 35 (5) of th

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hellip;………………………………………………………… ……………………………………… ……………………………………… **(Signature and stamp/Seal of the Auditor) Place: …………… Name of the signatory ………………… Membership No……………… Date: …………… Full address ……………………… II. Certification in cases where the reconciliation statement (FORM GSTR-9C) is drawn up by a person other than the person who had conducted the audit of the accounts: *I/we report that the audit of the books

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the period beginning from ……..…to ending on ………, and (d) documents declared by the said Act to be part of, or annexed to, the *profit and loss account/income and expenditure account and balance sheet. 2. I/we report that the said registered person- *has maintained the books of accounts, records and documents as required by the IGST/CGST/ Uttarakhand GST Act, 2017 and the rules/notifications made/issued thereunder *has not maintained the following accounts/records/documents as required by the IGST/CGST/ Uttarakhand GST Act, 2017 and the rules/notifications made/issued thereunder: 1. 2. 3. 3. The documents required to be furnished under section 35 (5) of the Uttarakhand GST Act and Reconciliation Statement required to be furnished under section 44(2) of the Uttarakhand Act is annexed herewith in Form No.GSTR-9C. 4. In *my/our opinion and to the best of *my/our information and according to examination of books of account including other relevant d

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GST – States – 853/2018/10(120)/XXVII(8)/2018/CT-41 – Dated:- 27-9-2018 – Government of Uttarakhand Finance Section-8 NOTIFICATION September 27, 2018 No. 853/2018/10(120)/XXVII(8)/2018/CT-41-WHEREAS, the State Government is satisfied that it is expedient so to do in public intersest; Now THEREFORE, in exercise of the powers conferred by section 128 of the Uttarakhand Goods and Services Tax Act, 2017 (06 of 2017), the Governor, on the recommendations of the Council, is pleased to allow to waive

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Governor is pleased to allow to appoint the 1st day of October, 2018, as the date on which the provisions of section 52 of the Uttarakhand Goods and Services Tax Act, 2017 shall come into force. – GST – States – 859/2018/16(120)/XXVII(8)/CT-51 – Dated:- 27-9-2018 – Government of Uttarakhand Finance Section-8 NOTIFICATION September 27, 2018 No. 859/2018/16(120)/XXVII(8)/CT-51 -WHEREAS the State Government is satisfied that it is expedient so to do in public interest, Now THEREFORE, in exercise of

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2018 (11) TMI 834 – CESTAT HYDERABAD – TMI – SSI Exemption – use of brand name of others – earning commission for promotion by way of marketing and selling of branded goods under the brand name/trade name viz., BATA on behalf of their principals M/s Bata India Ltd. – case of appellant is that the said commission is less than threshold limit under the Notification No. 06/2005-ST and 33/2012 it is not taxable.
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Held that:- Services rendered by the appellant is to Bata India Limited and get paid for such services; appellant is not into rendering of any branded services to customers, who purchase only branded footwear from the outlet. In this situation, the argument of the Revenue that services rendered by the appellant being in the Bata showroom are taxable services provided by a person under a brand name or trade name it cannot be held so.
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Similar issue decided in the case of Commissioner of Central Excise, Chandigarh Vs. A.S. Financial [2014 (7) TMI 746 – CESTAT NEW DELHI],

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lant (s) Respondent(s) Impugned Order 1. ST/27655/2013 Anusha Enterprises CC, CE, Visakhapatnam -II OIA No. 22/2013 (VII) ST dated 17.05.2013 2. ST/30254/2016 -dodo- OIA No. VIZ-EXCUS-002-APP-048-15-16, dated 28.10.2015 3. ST/31131/2017 -dodo- CCT, Visakhapatnam – GST OIA No. VIZ-EXCUS- 002-APP-026-17-18 dated 30.06.2017 4. ST/30459/2018 -dodo- OIA No. VIZ-EXCUS- 002-APP-116-17-18 dated 08.02.2018 3. Brief facts of the case are that the appellant is engaged in marketing of Bata brand footwear on commission basis. Investigation was launched and it was found that the appellant was earning commission for promotion by way of marketing and selling of branded goods under the brand name/trade name viz., BATA on behalf of their principals M/s Bata India Ltd. The Department viewed the appellant s service as a Commission agent was covered under Business Auxiliary service/Taxable service and is liable for payment of service tax under the provisions of the Finance Act, 1994. Show cause notice vide

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greed commission of 7% of the retail sale price, the total price of which for the previous year was less than ₹ 10 lakhs and therefore entitled to the benefit of SSI threshold exemption available under Notification No. 33/2012-ST dated 20.06.2012; that in order to constitute a service as one rendered under a brand name, the same needs to be a service provided using a brand name belonging to one person and the service recipient should be a person other than the brand name holder. In their case, they are not providing any service to a third person, under the brand name of BATA ; that penalties cannot be imposed, even if the issue of taxability is ultimately decided against them, as they are under the bonafide belief that they are not liable to pay service tax; They relied upon the decision of Hon ble CESTAT in Peoples Automobiles Ltd., Vs. CCE, Kanpur [2011 (24) STR 635 (Tri- Del)] and Gagandeep Singh Vs. CCE, Delhi [2012-TIOL-142-CESTAT-Del.]. 3.2 The Adjudicating Authority intera

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ate of one percent per month of the demand, whichever is higher under Section 76 of the Act. The lower authority further imposed a penalty of ₹ 10,000/- under Section 77(1)(a) for failure to obtain registration and thus violating Section 69; and penalty of ₹ 10,000/- under Section 77(2) of the Act, for failure to furnish ST-3 returns mandated by Section 70 of the Act. 4. Aggrieved by such an order, appellant preferred an appeal before the First Appellant Authority. In all these cases, the First Appellate Authority held the order of the Adjudicating Authority. Hence this appeal. 5. Learned Counsel appeared for the appellant after narrating the factual matrix and the services rendered by the appellant, submits that appellant is claiming the benefit of small scale service provider exemption granted to them under Notification No. 06/2005 as amended and Notification No. 33/2012. It is her submission that the entire issue involved in all these appeals is during the period from 20

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on, the tax liability confirmed denying the benefit of exemption notification is not in accordance with the law is settled in various forums. She relies upon the various decisions, Peoples Automobiles Ltd., [2011 (24) STR 635], MRS Jaspreet Kaur & MR Gagandeep Singh Vs. CCE, Delhi [2012-TIOL-142-CESTAT-Del.], Bakliwal Brothers Vs. CCE, Raipur [2017 (51) STR 7] and Commissioner of Central Excise, Chandigarh Vs. A.S. Financial [2015 (37) STR 400]. She submits that the issue new squarely covered in their favour. 6. Learned Departmental Representative reads the findings of the First Appellate Authority and submits that the services rendered by the appellant are undisputedly taxable. It is his submission that the findings of the First Appellate Authority that in the instant case appellant title is M/s Anusha Enterprises is succeeded by the words Bata Shoe Stores , invoices for sale are in the name of Bata as per the show cause notice. It is his submission that the First Appellate Author

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t is necessary in the public interest so to do, hereby exempts taxable services of aggregate value not exceeding four lakh rupees in any financial year from the whole of the service tax leviable thereon under section 66 of the said Finance Act: Provided that nothing contained in this notification shall apply to, – (i) Taxable services provided by a person under a brand name or trade name, whether registered or not, of another person; or (ii) Such value of taxable services in respect of which service tax shall be paid by such person and in such manner as specified under sub-section (2) of section 68 of the said Finance Act read with Service Tax Rules, 1994. 9. After considering the submissions made, it is seen from the proviso 1(i) on which reliance placed by the Revenue, we find that in the case in hand, services rendered by the appellant is to Bata India Limited and get paid for such services; appellant is not into rendering of any branded services to customers, who purchase only bran

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nt during each financial year, during the period of dispute, is less than ₹ 4 Lakhs. The only point of dispute is as to whether the respondent are eligible for small scale provider exemption under Notification No. 6/2005-S.T. and in this regard, the only point of dispute is as to whether the respondent were providing the Business Auxiliary Service to their client ICICI Bank Ltd. under brand name of another person, as if the service being provided by a small service provider is under the brand name of another person, the exemption under Notification No. 6/2005-S.T. would not be available. In this regard, the department s contention is that from the various clauses in the respondent s agreement with the ICICI Bank Ltd., it is clear that the marketing services and customers assistance services being provided by the respondent to the ICICI Bank Ltd. is under the brand name of the ICICI Bank and in this regard, the department refers to Clause 2, Clause 6 and Clause 10 of the responden

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e available to the respondent the advertisement materials including posters, leaflets, displays, flyers, stickers, signs, cards, which the respondent shall prominently display, maintain and distribute at their own expenses. In our view, there is nothing in the above clauses from which it can be inferred that the respondent were providing the Business Auxiliary Services to ICICI Bank Ltd. under the brand name of ICICI Bank Ltd. Just promoting the service products of ICICI Bank Ltd. and for this purpose, using the advertisement and publicity materials, etc. provided by the ICICI Bank Ltd., or displaying the banners with the words Franchise of ICICI Bank Ltd. on their premises would not mean that the respondent are providing the Business Auxiliary Services of marketing to their client ICICI Bank under the brand name of ICICI Bank Service provided by the Respondent is Business Auxiliary Service of promoting and marketing the services being provided by ICICI Bank Ltd. and the services being

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findings in the case of A.S. Financial, the respondent was specifically providing the marketing services and display banners and equipments and other items were of the expenses of A.S. Financial. The issue involved in this case in hand by squarely covered by the above said ratio and we find no reason to deviate from such a view already taken. 11. Similar views were expressed by the various Benches as per the laws cited herein above. Another case law, which is similar to the issue involved, is Bakliwal Brothers Vs. CCE, Raipur (supra) wherein, the appellant was having a shop and activity of promoting sale of Koutons brand of readymade garments. The bench again held that such activity is not taxable, benefit of exemption for small scale service providers is available. 12. In view of the foregoing, we hold that the all impugned orders are unsustainable and liable to be set aside and we do so. The impugned orders are set aside and the appeals are allowed. (Order pronounced & dictated

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REGARDING GSTR-3B. – GST – States – ORDER NO. 29 – Dated:- 27-9-2018 – Enclosed KA.NI.-2-1884/XI-9(47)/17-U.P. Act-1-2017, – Circular – Trade Notice – Public Notice – Instructions – Office orders

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2018 (11) TMI 173 – CESTAT HYDERABAD – 2018 (19) G. S. T. L. 645 (Tri. – Hyd.) – Levy of service tax – Collection of taxes for the Central Government and the Government of State and the commission received for such collection from those Governments – Held that:- The services are neither sale or marketing of goods nor promoting or marketing of services or any customer care services. In fact, collection of tax is neither a sale of good nor rendering of service. It is a compulsory payment which is collected by law from everyone by the State and the tax payer is not the customer or the client of the Government. It is in this compulsory collection of money in the form of tax, the appellant is assisting the Government of India and the State Government and is getting paid for the same – by no stretch of imagination can collection of taxes be called a business auxiliary service within the definition as per Sec. 65 (9) – demand set aside.
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Levy of service tax – Sale of Government of India

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ial services” – the demand made on sale of credit cards under the head of ‘business auxiliary services’ does not sustain.
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Whether the appellant has been issued show cause notice without jurisdiction as the head office of the appellant banking company had not rendered the services but their branches did? – Held that:- The assessee opted for centralized registration for some other services and has been discharging service tax accordingly. As far as the alleged four taxable services are considered, they have not paid any service tax. Having opted for centralized registration the appellant cannot now argue that their head office has no role in providing the services and hence cannot be issued a show cause notice. It is not the case of the appellant that their branch offices are separately registered with the department for the alleged services rendered – there is no force in the arguments of the appellant that the show cause notice was issued without jurisdiction.
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Extended peri

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respect of merchant banking services. The Director General of Central Excise Intelligence conducted investigation and found that the appellant has been rendering services and receiving amounts in respect of the following: (i) Collection of taxes on behalf of Central Government & Government of State. (ii) Sale of Government of India Bonds. (iii) Sale of mutual fund units of SBI. (iv) Sale of credit cards of SBI. 2. After collecting necessary details from the appellant and investigating the matter a show cause notice dated 03.03.2008 was issued to the appellant covering the period 01.07.2003 to 09.09.2004 demanding service tax under the head business auxiliary services in respect of the above four activities. It was also proposed to recover interest under Sec. 75 and impose penalties under Sec. 76, 77 & 78 of the Finance Act, 1994. The appellant contested the show cause notice before the original authority both on merits as well as on limitation. Appellant further argued that th

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intention to evade tax. (c) The show cause notice was issued without jurisdiction to the head office of the appellant bank. (d) Learned Commissioner erred in confirming the demand on the appellant bank without jurisdiction. (e) The sale of mutual fund units and Government of India Bonds during the relevant period was exempt from tax under Notification No. 13/2003 dated 20.06.2003. These mutual funds and Government of India Bonds are goods and the commission received on sale of goods was exempted vide the aforesaid notification. (f) Services rendered in relation to sale of credit cards are taxable only w.e.f. 01.05.2006. (g) Learned Commissioner erred in calculating service tax on total amount received which must be taken as inclusive of service tax amount. The penalties have been wrongly imposed by the learned Commissioner. 4. Learned counsel for the appellant submits that they are contesting the demand on merits, on limitation as well as on the jurisdiction. The sale of mutual funds a

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re as follows: 1) Whether service tax is chargeable during the relevant period on a. Collection of taxes for the Central Government and the Government of State and the commission received for such collection from those Governments. b. Sale of Government of India Bonds and commission received from RBI for such sale. c. Sale of credit cards of SBI (Issuing Bank) and the commission received from SBI for such sale. d. Sale of mutual funds of SBI and the commission received for such sale from SBI. 2) Whether extended period of limitation is invokable in this regard. 3) Whether the appellant has been issued show cause notice without jurisdiction as the head office of the appellant banking company had not rendered the services but their branches did. 4) Whether interest is recoverable and penalty is imposable under Sec. 76, 77 & 78 of the Finance Act, 1994. 7. Coming to the question of jurisdiction in issuing the show cause notice, we find that the assessee opted for centralized registrat

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ved is July 2003 to 09.07.2004. Identical issue came up before the Tribunal in the case of P.N. Vijay Financial Services (P) Ltd. Wherein the Bench held that sale and purchase of mutual funds is covered under notification No. 13/2003-ST and hence any commission received for such activity, no tax is payable. The same view was expressed by the Tribunal in the case of Geojit Financial Services Ltd. Therefore, we find no reason to deviate from such a view already taken. 9. As regards the commission received on collection of telephone bills, we find that the period involved is July 2003 to 09.09.2004. Hon ble Supreme Court in the case of Federal Bank Limited has categorically held that services provided by banks for collection of telephone bills, insurance premium on behalf of the client companies have to be considered as cash management service and cannot be considered under the category of business auxiliary services. On the face of such a categorical law being pronounced by Hon ble Apex

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lready taken. 8. In view of the above, we find no reason to take a different view in this case and we hold that the service of sale of Government of India bonds is not a service and there is no tax liability. As far as the sale of mutual funds is concerned, same has been covered by exemption notification 13/2003-ST as the commission received on sale of goods was exempted. The term good includes mutual funds as the same are movable property. As far as the collection of taxes on behalf of the Central Government and State Government is concerned, it is the argument of the revenue that these amount to business auxiliary services in terms of Sec. 65 (9) (iv). This clause defines business auxiliary services as any incidental or auxiliary support service such as billing, issue or collection or recovery of cheques, accounts and remittances, evaluation of prospective customer and public relation services and includes services as a commission agent but does not include technology service . In or

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y collection of money in the form of tax, the appellant is assisting the Government of India and the State Government and is getting paid for the same. Therefore, we are of the considered view that by no stretch of imagination can collection of taxes be called a business auxiliary service within the definition as per Sec. 65 (9). As far as the sale of credit cards is concerned, credit card services were part of the banking and other financial services w.e.f. 14.05.2003. But w.e.f. 01.05.2006 separate entry has been made for credit card services comprehensively covering credit card, debit card, charge card or other payment card services . This service included any service provided by any person to an issuing bank in relation to such card business including receipt or process of an application, transfer of embossing data to issuing bank s personalisation agency, ATM PIN generation, renewal or replacement of card, change of address, enhancement of credit limit, payment updation and statem

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2018 (10) TMI 1338 – NATIONAL ANTI-PROFITEERING AUTHORITY – 2018 (17) G. S. T. L. 627 (N. A. P. A.) – Profiteering – restaurant service – failure to pass the benefit of reduced rate of GST – it was alleged that Respondent has not passed on the benefit of reduction in the rate of GST in restaurant service, when he had purchased “Hara Bhara Kabab Sub” – It was also alleged that the Respondent had increased the base price of the product from ₹ 130/- to ₹ 145/- when the GST was reduced from 18% to 5%.
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Benefit of rate reduction – Held that:- It is apparent from the facts of the case that the Respondent had increased the base price of his products to make good the loss which had occurred due to denial of ITC post GST rate reduction. It is further revealed that the Respondent had increased the average base price by 12.14% to neutralize the denial of ITC of 11.80% and such increase is commensurate with the increase in the cost of the product on account of denial of ITC. Ther

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eral of Safeguards (DGSG) now Director General Anti-Profiteering (DGAP) after detailed investigation under Rule 129 (6) of the Central Goods & Services Tax (CGST) Rules, 2017. The brief facts of the case are that an application dated 01.01.2018 was filed by the Applicant No. 1 before the Standing Committee constituted under Rule 123 (1) of the above Rules alleging that the Respondent has not passed on the benefit of reduction in the rate of GST in restaurant service, when he had purchased "6 Hara Bhara Kabab Sub" (here-in-after referred to as the product). It was also alleged that the Respondent had increased the base price of the product from ₹ 130/- to ₹ 145/- when the GST was reduced from 18% to 5%. Thus it was further alleged that the Respondent had indulged in profiteering in contravention of the provisions of Section 171 of CGST Act, 2017. 2. The above application was examined by the Standing Committee on AntiProfiteering and was referred to the DGAP vid

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on the goods and services used in supplying the service will not be allowed vide Notification No. 46/2017-Central Tax (Rate) dated 14.1 1.2017 with effect from 15.11.2017. The DGAP has also stated that on scrutiny of the GSTR-I, GSTR-3b and the ITC Register submitted by the Respondent, it was observed that ITC amounting to ₹ 13,01 ,759/- was available to the Respondent during the period from July, 2017 to November, 2017 which came to approximately 1 1.80% of the taxable value of the service amounting to ₹ 1,10,29,612/- supplied during the same period but when the tax was reduced from 18% to 5%, the said ITC was not available to the Respondent. The DGAP has further stated that the analysis of the invoice-wise outward taxable supplies for the period w.e.f. 15.1 1.2017 to 28.02.2018 revealed that the Respondent had increased the base prices ranging from 6% to 17% of the different items supplied as a part of restaurant service to make good the loss of ITC post GST rate reducti

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since the GST rate was reduced from 18% to 5% and the ITC was denied on the restaurant service supplied by the Respondent only w.e.f. 15.11.2017. He has further intimated that the Respondent had increased the base price to include the cost of input tax and also subjected the customers to GST at the higher rate of 18%, therefore, the unwarranted increase in base price and not passing on the benefit of ITC to the consumers amounted to profiteering by the Respondent. He has also contended that while the increase in the base price of 12.14% was not exactly equivalent to the denial of ITC to the extent of 11.80%, such increase in the base price was commensurate with the denial of ITC. He has further contended that in anticipation of reduction in the rate of GST and denial of ITC w.e.f. 15.11.2017 the Respondent had increased the base price of certain products and collected excess amount of ₹ 452/- on 14.11.2017 as a result of which consumers had to pay higher amount in the form of in

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r submitted that no ITC was being passed on by M/S Subway as the franchisee was free to buy the raw material from the local sources. They also stated that only the ingredients and the products to be served were decided by M/S Subway. 6. The DGAP was also asked to file reply on the ITC aspect of the pre and post GST, embedded tax aspect of the pre GST era of which credit was not allowed and to extend the investigation to other outlets and products of M/S Subway vide letter dated 1 1.06.2018. The DGAP vide his reply dated 26 June 2018 has stated that the application was filed in relation to the restaurant service supplied on 4.12.2017 and the GST rate on restaurant service had been reduced from 18% (with ITC) to 5% (without ITC) w.e.f. 15.11.2017 and therefore the investigation could not be extended to the period before 15.1 1.2017 and the ITC involvement in the pre GST valuation had not been considered relevant. The DGAP has further stated that there were approx. 600 outlet of M/S Subwa

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n the rate of tax on the restaurant service after 14.11.2017 and whether the benefit as emanating from such reduced tax rate has not been passed to the Applicant No. 1 in terms of the commensurate reduction in the price of the product purchased by him? ii. Whether profiteering of ₹ 452/- was made by the Respondent by selling 32 number of items on 14.11.2017 in Karelibaug outlet at increased base price? 9. It is apparent from the record that the GST on restaurant service has been reduced by the Central Government vide Notification No. 46/2017-Central Tax (Rate) dated 14.11.2017 from 18% to 5% and ITC has been disallowed. It is also revealed that the Applicant No. 1 in his application dated 01.01.2018 had stated that he had purchased Hara Bhara Kabab from the Respondent who had increased the base price of the product from ₹ 130/- to ₹ 145/- and had denied the benefit of rate reduction to him. He had also submitted copy of the tax invoice dated 04.12.2017 and the leaflet

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2018 (10) TMI 1315 – AUTHORITY FOR ADVANCE RULINGS, TAMIL NADU – 2018 (19) G. S. T. L. 692 (A. A. R. – GST) – Levy of GST – Supply of services or not – activity of Liaison office – concept of distinct person and related person. – Whether liaison office is liable to pay GST? – Held that:- The applicant/liaison office is working as per the terms and conditions stipulated by RBI and the reimbursement of expenses & salary of employees is paid by Mls Takko Holding GmbH to the liaison office. No consideration for any activity is being charged by the liaison office and the liaison office does not have any business activities of its own as specified by RBI conditions.
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Further, Schedule I of CGST Act specifies that supply of services between related parties or distinct persons as per Section 25, even without consideration, constitute a supply.
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Takko is acting as an extension of the German Office in its procurement activities from suppliers in India as has been spelt out in the RBI

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h the Central Goods and Services Tax Act and the Tamil Nadu Goods and Services Tax Act are the same except for certain provisions. Therefore, unless a mention is specifically made to such dissimilar provisions, a reference to the Central Goods and Services Tax Act would also mean a reference to the same provisions under the Tamil Nadu Goods and Services Tax Act. Takko Holding GmbH is a company incorporated in Germany. They are permitted by RBI to have a Liaison Office of the company at 1/1 J-16, Thannerpandal Colony, Avinashi Road, Anupparpalayam, Tirupur-641652 (hereinafter referred to as Takko or the Applicant ) under certain conditions. Takko is not registered under GST. The applicant have submitted the copy of application in Form GST ARA-01 and also submitted a copy of Challan evidencing payment of application fees of ₹ 5,000/- each under sub-rule (1) of Rule 104 of CGST Rules, 2017 and SGST Rules, 2017. They have sought advance ruling on the following : (1) Whether liaison o

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ct in their own name without prior permission. No commission/fees be charged or any other remuneration received/income earned by the office in India for the liaison activities/services rendered by it or otherwise in India. 2.2 The activities of Takko are : (1) Order enquiries are received from German office and sent to the supplier in India for their price quote; (2) Prices are collected from various suppliers, and informed to German office; (3) German office confirms the order for the supplier with lowest price quote deliver terms; (4) The order production process are followed by Merchandising Department (collecting data for each stage of the progress till the execution of order) and communicated to German office; (5) The Quality Department audits/monitors the quality parameters of the merchandise on continuous basis until the final inspection of the merchandise & shipment and communicates with the Supplier and the German office; (6) The Shipping Department coordinates with G

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on from related persons or distinct persons as German Office and Liaison Office are not related person as there is only one legal entity and no relationship can be established. They are not a distinct person under Section 25 as distinct persons have establishments in more than one state or Union Territory. As per RBI terms and conditions, they are not engaged in any business or furtherance of business as they are only acting as communication channel between German office and Indian exporters. They are not permitted to obtain IE Code, raise invoice on German office and hence are not required to take registration under GST. 3.1 The Applicant was heard in person on 16.05.2018 and 2I.06.2018. They have stated that the Holding company procures Readymade garments based on designs given by them to manufacturers in Tirupur ; they do not have any financial transactions with such suppliers or sister firms around the world; the expenses of administration are paid by Germany office routed through

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dertake only the limited set of activities as listed in para 2.I above. No other activities are permitted and no consideration shall be charged for the liaison activities or any other activities in India. Liaison Office cannot render any consultancy or any services directly /indirectly with / without consideration. All expenses of the office are to be met only out of funds received from abroad. This is substantiated by the Statement of accounts, Annual Statement Form 49C filed under Income Tax Act, Bank Inward Remittance advice submitted by the Applicant. It is seen from the screenshots of online software supplied by the Applicant that all communication for the various liaison activities are undertaken through electronic means. The activities undertaken by the applicant include communicating to suppliers in India the order enquires received from German office, communicating to German office price quotes received, collecting order sheets and communicating to the concerned supplier. The

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Activities of a liaison office amount to supply of services? The above questions may be answered by first clarifying whether the liaison activities undertaken by the applicant amounts to a supply and then whether it is a taxable supply and whether the applicant should take registration under CGST /SGST Act. 4.2 In the case at hand, Takko are working as the liaison Office of M/s. Takko Holding GmbH, Germany with the prior permission of RBI. Liaison Activities include acting as communication channel between the parent company and Indian supplier of goods to parent company at Germany in terms of the procurement, order placement, quality checks, and technical support shipping of the Readymade garments. Takko is not receiving any consideration for this from the suppliers. Except this liaison work, this office in India would not undertake any activity of trading, commercial or industrial nature nor would they enter into any business contracts in its own name without RBIs prior permission. Th

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(b) import of seruices for a consideration whether or not in the course or furtherance of business; (c) the actiuities specified in Schedule I, made or agreed to be made ruithout a consideration; and (d) The actiuities to be treated as supply of goods or supplA of seruices as referred to in Schedule II. From the submissions made by the applicant as discussed in above paras, it is seen that the applicant/liaison office is working as per the terms and conditions stipulated by RBI and the reimbursement of expenses & salary of employees is paid by Mls Takko Holding GmbH to the liaison office. No consideration for any activity is being charged by the liaison office and the liaison office does not have any business activities of its own as specified by RBI conditions. Further, Schedule I of CGST Act specifies that supply of services between related parties or distinct persons as per Section 25, even without consideration, constitute a supply. Takko is acting as an extension of the German

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2018 (10) TMI 1053 – AUTHORITY FOR ADVANCE RULING, TAMILNADU – 2018 (18) G. S. T. L. 560 (A. A. R. – GST) – Rate of tax – Electrical Wiring Harness – Whether the Electrical Wiring Harness, primarily an electrical wire with connectors at both ends, manufactured by the Applicant falls under HSN tariff item 8544 for which the rate prescribed vide Notification No. 01/2017 – Central Tax (Rate) dated 28th June 2017 read with 41/2017 – Central Tax (Rate) dated 14th November 2017 is 9%? – whether the said rate of Central tax of 9% is applicable to the above product with effect from 1st July 2017?
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Held that:- The Applicant is engaged in the manufacture of Electrical Wiring Harness Assembles consisting of insulated wires and cables with connectors used in brake systems and related parts for heavy vehicles such as bus, trucks and other such commercial vehicles; They have been supplying the Electrical Wiring Harness to their customers such as major automobile manufacturers and in the retail

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hedule III was modified as 'Insulated (including enameled or anodized) wire, cable (including co-axial cable) and other insulated electric conductors, whether or not fitted with connectors; optical fibre cables, made up of individually sheathed fibres, whether or not assembled with electric conductors or fitted with connectors'.
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Thus, the ‘Electrical Wiring Harness manufactured by the Applicant, was subjected to tax @ 14% CGST and 14% SGST for the period from 01.07.2017 to 14.11.2017 and thereon, the tax rate is reduced to 9% CGST and 9% SGST.
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Ruling:- The Electrical Wiring Harness manufactured by the Applicant falls under the HSN tariff item No. 85443000 for which the rate prescribed is 14% CGST for the period from 01.07.2017 to 14.11.2017 and from 15.11.2()17, the rate of tax is 9% CGST under Sl.No. 395 of Schedule III of Notification No. 01/2017-C.T. (Rate) dated 28th June 2017 and 9% SGST under Sl.No. 395 of Schedule 111 of G.O. (Ms) No. 62 dated 29.06.2017 No. II(2)/CT

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Road: Ambattur Industrial Estate, Chennai, Tamilnadu – 600 093 (hereinafter called as WABCO or AppIicant ) is a limited company engaged in the manufacture of brake systems and related parts for heavy vehicles. They are registered under Goods and Service Tax (GST) vide Registration no. 33AAFCA6421P1ZK. The applicant has submitted the copy of application in Form GST ARA – 01 and also submitted a copy of Challan evidencing payment of application fees of ₹ 5,000/-each under sub-rule (1) of Rule 104 of CGST rules 2017 and SGST Rules 2017. WABCO, manufacture inter-alia, a product named Electrical Wiring Harness . WABCO has sought advance ruling on the following: 1. Whether the Electrical Wiring Harness, primarily an electrical wire with connectors at both ends, manufactured by the Applicant falls under the HSN tariff item 8544 for which the rate prescribed vide Notification no 1/2017 -Central tax (Rate) dated 28 June 2017 read with 41/2017 -Central tax (Rate) dated 14th November 2017

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rical Wiring Harness for vehicle will be classified more specifically under tariff item 85443000 Ignition wiring sets and other wiring sets of a kind used in vehicles, aircraft or ships and 854442 fitted with connectors and not under tariff item 8708 as parts and accessories of motor vehicles of heading 88701 to 8705 ; that as per Note 2 to Section XVII in Explanatory Notes for Harmonized Commodity Description and Coding System , which covers Chapter 86 to 89, the expression parts and accessories do not apply to electrical machinery or equipment (chapter 85);they are also excluded from parts and accessories as per General Explanatory Notes to Section XVII as Electrical Harness is specifically covered elsewhere. 2.2 They stated that they are supplying the Electrical Wiring Harness to their customers such as major automobile manufacturers and in the retail segment through their distributors.; The supply has been made under invoices with CGST of 14% as per Sl no 161 of Schedule IV of Noti

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to the applied. 3. The Authorized Representative of the Applicant was heard in the matter. They stated that the Electrical Wiring Harness are to be classified under 8544 as per Customs Tariff and HSN explanatory Notes. They had stated that Notification No. 01/2017 has tariff 8544 under Schedule Ill presently and under Schedule IV till its amendment in November 2017, when tariff 8544 figures only in Schedule III. They stated that their goods are wiring harness which will fit the description of 8544.30 as other wiring sets used in vehicles as this is used in brakes. They stated that the notification rate of 9% should be applicable from 01/07/2017 onwards. They submitted write up on the product, images, invoices pre-and post GST. They also submitted Circular 25/88 Cx dated 17.11.1988 issued by CBEC on classification of wiring harness as under 8544. 4. The documents submitted by the Applicant have been examined. It is seen that a wiring harness is a set of wires, terminals and connectors t

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said rate of Central tax of 9% is applicable to the above product with effect from 1st July 2017. 5.1 From the various submissions of the Applicant, it is seen that the Applicant is engaged in the manufacture of Electrical Wiring Harness Assembles consisting of insulated wires and cables with connectors used in brake systems and related parts for heavy vehicles such as bus, trucks and other such commercial vehicles; They have been supplying the Electrical Wiring Harness to their customers such as major automobile manufacturers and in the retail segment through their distributors. 5.2 In terms of explanation (iii) and (iv) to Notification No. 1/2017 – Central Tax (Rate) dt. 28-06-2017, tariff heading, sub-heading, heading and chapter shall mean respectively a tariff item, sub-heading, heading and chapter as specified in the First Schedule to the Customs Tariff Act, 1975 and the rules for the interpretation of the First Schedule to the Customs Tariff Act, 1975, including the Section and

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lated, this heading covers electric wire, cable and other conductors(e.g. braids, strips, bars) used as conductors in electrical machinery, apparatus or installations. . …Wires, cable etc, remain classified in this heading if cut to length or fitted with connectors(e.g. plugs, sockets, lugs, jacks, sleeves or terminals) at one or both ends. The heading also includes wire etc. of the types described above made up in sets (e.g. multiple cables for connecting motor vehicle sparking plugs to the distributor). The applicant manufactures Electrical Wiring Harness which are insulated wires and cables with connectors which is used in automobile Industry and therefore it is to be seen that they are to be classified under HSN 85443000. It is true that the items are parts of motor vehicles. Section note 2 to Section XVII covering chapter 87, is as follows: 2. The expressions parts and parts and accessories do not apply to the following articles, whether or not they are identifiable as for the g

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ling under Tariff heading 8544 is mentioned at Sl. No. 395 of Schedule 111 and S.N0.161 of Schedule IV of Notification No. 1/2017-C.T.(Rate) dated 28.06.2()17, which are reproduced below: Sl. No. Chapter/Heading /Sub-heading/ Tariff item Description of Goods Rate 161 of Schedule IV 8544 Insulated (including enamelled or anodised) wire, cable and other insulated electric conductors, whether or not fitted with connectors [other than Winding Wires; Coaxial cables; Optical Fiber] 14 395 of Schedule III 8544 Winding Wires; Coaxial cables; Optical Fiber 9 The product in question is an Electrical Wiring Harness set falling under 85443000. Winding Wires, Coaxial cables and optical Fiber falls under Chapter Heading 854410, 854420 and 854470 respectively. Therefore, the product in question is covered under Sl.No. 161 of Schedule IV above of Notification No. 1/2017-C.T.(Rate) dated 28.06.2017 and G.O. (Ms) No. 62 dated 29.06.2017 No. Il(2)/CTR/532(d-4)/2017 and is subject to tax at the rate of 14

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