Goods and Services Tax

Court Urges Leniency for Vehicle Detention Despite Proper Tax Payment and Documentation by Registered Dealer.
Case-Laws
GST
Detention of vehicle along with goods – When the writ petitioner is a registered dealer, when the tax in respect of the goods have already been remitted and when the transportation of goods is duly covered by proper documentation, the respondent ought to have taken a sympathetic and indulgent view of the lapse committed by the driver of the vehicle
TMI Updates

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

Squad Officer Can Detain Goods Temporarily for Documentation Before Sending to Assessing Officer; Must Be Brief.
Case-Laws
GST
Jurisdiction to detain the goods – The squad officer can intercept the goods, detain them for the purpose of preparing the relevant papers for effective transmission to the jurisdictional assessing officer. It is not open to the squad officer to detain the goods beyond a reasonable period. The process can at best take a few hours.
TMI Updates – Highlights, q

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

High Court Confirms Assistant State Tax Officer's Right to Detain Goods for GST Documentation Verification.
Case-Laws
GST
Jurisdiction to detain the goods – HC uphold the power of Assistant s

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

Tamil Nadu Commissioner Orders Inspecting Officers Not to Detain Goods Over Bona Fide Tax Disputes.
Case-Laws
GST
Jurisdiction to detain the goods – Commissioner directed to issue a circular

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

GST Revenue collection for January 2019 crossed one lakh crore rupees
GST
Dated:- 2-2-2019

The total gross GST revenue collected in the month of January, 2019 is ₹ 1,02,503 crore of which CGST is ₹ 17,763crore, SGST is ₹ 24,826 crore, IGST is ₹ 51,225 crore (including ₹ 24,065crore collected on imports) and Cess is ₹ 8,690 crore (including ₹ 902crore collected on imports). In FY 2018-2019, it is for the third time that GST Revenue collection has crossed One Lakh Crore. The total number of GSTR 3B Returns filed for the month of December up to 31st January, 2019 is 73.3lakh.
The government has settled ₹ 18,344 crore to CGST and ₹ 14,677 crore to SGST from IGST as regular set

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

ITC eligibility on works contract and construction activities
By: – Saurabh Chokhra
Goods and Services Tax – GST
Dated:- 2-2-2019

Topic: ITC eligibility on works contract and construction activities
Impacted Industry: Construction, Works Contract
Definition of works contract and construction under GST law
*
“Works contract” has been defined u/s 2(119) of the CGST Act, 2017 as a contract for building, construction, fabrication, completion, erection, installation, fitting out, improvement, modification, repair, maintenance, renovation, alteration or commissioning of any immovable property wherein transfer of property in goods (whether as goods or in some other form) is involved in the execution of such contract.
*
It is worthwhile to note that the above definition covers only certain works performed on immovable property as works contract. Unlike the service tax regime the works contract no longer cover works performed on movable property. Further, it is only

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

an immovable property (other than plant and machinery) except where it is an input service for further supply of works contract service;
d) goods or services or both received 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
Explanation.For the purposes of this Chapter and Chapter VI, the expression “plant and machinery” means apparatus, equipment, and machinery fixed to earth by foundation or structural support that are used for making outward supply of goods or services or both and includes such foundation and structural supports but excludes –
(i) land, building or any other civil structures;
(ii) telecommunication towers; and
(iii) pipelines laid outside the factory premises.
*
The provisions restrict credit of works contract services for works to be performed on immovable property and also restrict the credit of co

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

ruction activity will not qualify as works contract if there is no transfer of property in goods involved i.e. the contractor is supplying service only without any supply of goods.
*
Works contract may or may not be a construction. Like there may be activities like installation, fabrication, which may qualify as works contract but cannot be covered in the definition of construction.
Test of immovable property:
*
It is important to determine whether property is movable or immovable as it is first and foremost thing which include or exclude the activity from the scope of works contract or construction activity and will have impact of ITC eligibility or otherwise. The term has not been defined in GST law.
*
Immovable property is defined in Section 3(26) of the General Clauses Act, 1897 to include land, benefits to arise out of land and things ATTACHED TO THE EARTH, or permanently fastened to anything attached to the earth.
*
Further, test of immovable property to be appl

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

building or anything which is immovable and cost is capitalised as per Ind As 16. ITC is allowed if foundation laid down support moveable property and or cost is charged off to revenue.
2. FIXING OF DOOR-
*
Door which is fixed to complete a room will be integral part of the building and therefore, will be immovable property if seen along with building.
*
Fixing of door is alteration/addition to building (immovable property) is covered in the definition of “construction” as defined under sec 17(5)(c) and (d) and therefore, works contract, if the cost of renovation is capitalised.
*
ITC not available if the cost of construction is capitalised. If the cost charged to revenue then ITC is available.
3. Renovation of security office located at the entry gate
*
Such renovation is covered in the definition of “construction” as defined under sec 17(5)(c) and (d) and therefore, works contract, if the cost of renovation is capitalised.
*
ITC not available if the cost of c

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

ime as in the GST regime capitalisation of cost or charging off the same to P&L carry paramount importance in deciding the eligibility or otherwise. Further, ITC not allowed only in case of immovable property that to other than plant & machinery.
–
Thanks for reading the article, author may be contacted at saurabhchokhra92@gmail.com
Best Regards
Saurabh Chokhra
B.Com, ACA, DISA(ICAI)
Reply By Swaminath V as =
If repair work of building has a life of more than one year… e.g water proofing of cieling of factory building to protect the plant and machinery inside it…. .shiuld it be charged to revenue and avail ITC or capitalised and forego ITC
Dated: 4-2-2019
Reply By Arunagiri Guhaneswaran as =
My client is running a serviced apartment as well as letting out rooms on hire basis. He is constructing additional rooms. Whether GST paid on Architect's services can be claimed as ITC? Whether GST paid on purchase of materials for above activity be claimed as ITC?
What will be

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

Highlights of amendments in GST Law
By: – Ashwarya Agarwal
Goods and Services Tax – GST
Dated:- 2-2-2019

Highlights of major amendments in GST law to be made effective from 1st day of February, 2019.
* The word 'Central Board of Excise and Customs', wherever used is substituted as 'Central Board of Indirect Taxes and Customs'
* Sub-clause (h) in definition of 'Business' (Clause 17) is amended to ensure that all activities of Race club are included. The word service is also substituted to remove ambiguity as actionable claims have been defined as 'goods' in the CGST Act.
* Now an assessee can have separate registration for multiple place of business within a single state. The concept of Business Vertical is done away with.
For this purpose definition of 'Business Vertical' in Section 2 clause (18) is omitted, Proviso to section 25(2) is substituted and Rule 11 of CGST Rule is amended. Rule 41A is inserted to prescribe manner and Form ITC 02A for distribution of

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

ces is notified under section 9(4). Similar amendment is done in section 5(4) of IGST Act.
Composition Scheme
Section 10 is amended to increase the limit from Rupees One Crore to Rupees One Crore and Fifty Lakh. Further necessary amendment is done to allow Composition dealers to supply services
Explanation in clause (b) of section 16(2) is substituted to introduce concept of deemed receipt of Goods and Service for eligibility to claim Input Tax Credit. Presently this concept was only for goods.
Now, in case of services, the registered person shall be deemed to have received the services where the services are delivered by the supplier to recipient or any other person on the direction of the said registered person. This may benefit Works contractors who are providing services elsewhere and billing elsewhere.
Section 17(5) is amended to restrict eligibility of ITC on in respect of Motor Vehicle. Further ITC is being allowed in respect of food and beverages or both where the pro

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

has applied for cancellation of registration, his registration shall be deemed to be suspended from the date of submission of application of cancellation, till the proceeding for cancellation of registration is pending.
The registered person shall not make any taxable supply during the period of suspension and shall not be required to furnish any return under section 39.
Credit Note / Debit Note
Now a registered person can issue Single Credit Note / Single Debit Note for multiple invoices. This amendment will provide huge relief across industries as presently separate credit note / debit note was required to be issued for every single invoice. Section 34 is amended for this purpose along with insertion of sub-rule (1A) to Rule 53. Necessary changes shall be made in GST portal also for this purpose.
Proviso is inserted to section 35(5) to exempt department of the Central or State Government / local authority which is subject to audit by CAG, from getting their books of account

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

nce in transit under section 129 is increased from 7 days to 14 days. Thereafter the proceeding shall be initiated in accordance with provisions of section 130;
Job Work
Proviso is inserted in section 143(1) to empower Commissioner to extend the period of one year and three year as provided in section by further period not exceeding one year and two years respectively;
Para 4 of Schedule I is amended to increase its scope. Now import of services by entities which are not registered under GST (say, they are only making exempted supplies) but are otherwise engaged in business activities, shall be taxed when received from a related person or from any of their establishments outside India. This will affect the foreign Companies not registered in India;
New entries are made in Schedule III which are as below:
Para 7
Supply of goods from a place in the non-taxable territory to another place in the non-taxable territory without such goods entering into India.
Para 8
* Supply

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

Multiple registrations in same state/union territory are now reality.
By: – Ramandeep Bhatia
Goods and Services Tax – GST
Dated:- 2-2-2019

INTRODUCTION:
In the GST regime, taxpayers have been shifted from the centralized registration (as was in service tax) to State centralized registration. There was off course option of business vertical which was allowed only on some restrictive purposes where the business line is subject to different risk and reward. There has been continuous demand from the industry especially from sectors which works in a standalone environment to provide a facility of separate registration within the state itself like chain restaurants, supermarkets, hotels etc.
The Central GST Amendment 2018 with the amendment in section 25(2) effective from 1st of February 2019 to enable the person having multiple places of business in a state or union territory to obtain separate registrations for each such place of business if they wish so. Thus the requir

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

vices Tax (Amendment) Rules, 2019
Rule.1 Separate registration for multiple places of business within a State or a Union territory.-
(1) Any person having multiple places of business within a State or a Union territory, requiring a separate registration for any such place of business under sub-section (2) of section 25 shall be granted separate registration in respect of each such place of business subject to the following conditions, namely:-
(a) Such person has more than one place of business as defined in clause (85) of section 2;
2(85) “place of business” includes
(a) a place from where the business is ordinarily carried on, and includes a warehouse, a godown or any other place where a taxable person stores his goods, supplies or receives goods or services or both; or
(b) a place where a taxable person maintains his books of account; or
(c) a place where a taxable person is engaged in business through an agent, by whatever name called;
(b) Such person shall not pay tax unde

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

stered person opting to obtain a separate registration for a place of business shall submit a separate application in FORM GST REG-01 in respect of such place of business.
(3) The provisions of rule 9 and rule 10 relating to the verification and the grant of registration shall, mutatis mutandis, apply to an application submitted under this rule.
Inserted Rule -41A Transfer of credit on obtaining a separate registration for multiple places of business within a State or Union territory
”
* A registered person who has obtained separate registration for multiple places of business in accordance with the provisions of Rule 11 and who intends to transfer, either wholly or partly, the unutilised input tax credit lying in his electronic credit ledger to any or all of the newly registered place of business, shall furnish within a period of thirty days from obtaining such separate registrations, the details in FORM GST ITC-02A electronically on the common portal, either directly or through

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

ain a separate registration for Pune which was its additional place of business. Let's say the total assets in the books of ABC Limited are INR 100.00 CR and out of those total assets in the books of branch Pune is INR. 30.00 CR. Hence the total utilised ITC to the extent of 30% can be transferred to the Pune separate registration via form GST ITC -02A which needed to be filled within 30days of separate registration.
The newly registered person (transferee) shall, on the common portal, accept the details so furnished by the registered person (transferor) and, upon such acceptance, the unutilised input tax credit specified in FORM GST ITC-02A shall be credited to his electronic credit ledger.”
Section 25(4) concept of a distinct person
A person who has obtained or is required to obtain more than one registration, whether in one State or Union territory or more than one State or Union territory shall, in respect of each such registration, be treated as distinct persons for the purp

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

Section-wise Commentary on The Integrated Goods and Services Tax (Amendment) Act, 2018
By: – Vivek Jalan
Goods and Services Tax – GST
Dated:- 2-2-2019

Section 1 :Short title, extent and commencement
(1) This Act may be called the Integrated Goods and Services Tax (Amendment) Act, 2018.
(2) It shall come into force on such date as the Central Government may, by notification in the Official Gazette, appoint:
Provided that different dates may be appointed for different provisions of this Act and any reference in any such provision to the commencement of this Act shall be construed as a reference to the coming into force of that provision.
Previously it was read as :
(1) This Act may be called the Integrated Goods and Services Tax Act, 2017.
(2) It shall extend to the whole of India.
(3) It shall come into force on such date as the Central Government may, by notification in the Official Gazette, appoint:
Provided that different dates may be appointed for different p

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

nction entrusted to a Panchayat under article 243G or to a municipality under article 243W of the Constitution;
Previously it was read as :
Explanation.For the purposes of this clause, the expression “governmental authority” means an authority or a board or any other body,
(i) set up by an Act of Parliament or a State Legislature; or
(ii) established by any Government,
with ninety per cent. or more participation by way of equity or control, to carry out any function entrusted to a municipality under article 243W of the Constitution;
Commentary For Amendment u/s 2(6) – There are certain payments received in INR through Nostro/Vostro Accounts for Goods/Services supplied abroad. The payment for such transactions though such accounts are received in INR.
Here is an explanation to highlight how a Nostro and a Vostro account works in the most simplified terms. Nostro in Latin literally means ours and Vostro means yours.
Take a bank in India, Bank A for example. A gets a lot many rem

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

ods 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.”.
Previously it was read as :
(4) The integrated tax in respect of the supply of taxable goods or services or both by a supplier, who is not registered, to a registered person shall be paid by such person on reverse charge basis as the recipient 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 the supply of such goods or services or both.
Commentary – The objective to amend Section 5 of the Act empowering the Central Government is to notify classes of registered persons to pay tax on reverse charge basis in respect of receipt of supplies of certain specified Categories of goods or services or both from unregistered suppliers; As decided by the GST Council, Reverse Chanrge u/s 5(4) of IGST Act may be applicable o

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

n.
“Provided that where the transportation of goods is to a place outside India, the place of supply shall be the place of destination of such goods.”.
Previously it was read as :
(8) The place of supply of services by way of transportation of goods, including by mail or courier to,
(a) a registered person, shall be the location of such person;
(b) a person other than a registered person, shall be the location at which such goods are handed over for their transportation.
Commentary – The objective to amend Section 12 of the Act is to provide that if the transportation of goods is to a place outside India, the place of supply shall be the place of destination of such goods;
Section 13 :Place of supply of services where location of supplier or location of recipient is outside India.
(3) The place of supply of the following services shall be the location where the services are actually performed, namely:-
(a) services supplied in respect of goods which are required to be made phy

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

available by the recipient of services to the supplier of services, or to a person acting on behalf of the supplier of services in order to provide the services:
Provided that when such services are provided from a remote location by way of electronic means, the place of supply shall be the location where goods are situated at the time of supply of services:
Provided further that nothing contained in this clause shall apply in the case of services supplied in respect of goods which are temporarily imported into India for repairs and are exported after repairs without being put to any other use in India, than that which is required for such repairs;
Commentary – Place of supply in case of any treatment or process (which may not come within the four corners of the definition of job work) done on goods temporarily imported into India and then exported without putting them to any other use in India, to be outside India.
Section 17 :Apportionment of tax and settlement of funds.
New sub

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

Karnataka Goods and Services Tax (Second Removal of Difficulties) Order, 2019
ORDER NO.02/2019 Dated:- 2-2-2019 Karnataka SGST
GST – States
Karnataka SGST
Karnataka SGST
FINANCE SECRETARIAT
ORDER NO.02/2019
No. FD 47 CSL 2017, Bengaluru, dated 02/02/2019
WHEREAS, sub-section (4) of Section 52 of the Karnataka Goods and Services Tax Act, 2017 (Karnataka Act 27 of 2017) (hereafter in this Order referred to as the said Act) provides that every operator who collects the amount specified in sub-section (1) shall furnish a statement, electronically, containing the details of outward supplies of goods or services or both effected through it, including the supplies of goods or services or both returned through it, and the amount c

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

Power Banks Are Classified as Accumulators, Not Static Converters, Under Heading 85 07 per GST Case Laws.
Case-Laws
GST
Classification – Power Bank – the principal function of the said Power

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

Chhattisgarh Text Book Corporation's Supply of Books to Schools Qualifies for Zero GST Tax Rate as Principal Supply.
Case-Laws
GST
Composite supply or principal supply? – supply of books by C

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

Chhattisgarh Housing Board Services for Waste Management and Water Supply Exempt from GST as Pure Services.
Case-Laws
GST
Exempted supply or not – supply of services to Solid waste management

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

Employee Health Insurance Recovery Not a “Service Supply”; No Input Tax Credit on GST for Applicant.
Case-Laws
GST
Whether recovery of Parents Health Insurance expenses from employee in respe

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

No ITC for GST on Hotel Accommodation Provided Rent-Free to Employees per Section 17(5)(g).
Case-Laws
GST
Input tax credit – GST paid for hotel stay in case of rent free hotel accommodation p

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

Settlement Commission Order Discusses Appointment Process for Key Roles; Queries Routine Challenges to Commission's Decisions by Department.
Case-Laws
Income Tax
Settlement commission order – Chairman and the Vice Chairman of a Settlement Commission are appointed from amongst serving Chief Commissioners or Principal Chief Commissioners or Principal Commissioner of Income Tax of equivalent rank and which again is a relevant factor for the Department to ponder, whether at all any order of

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

TREATMENT OF REJECTED GOODS
Query (Issue) Started By: – ARPIT OJHA Dated:- 1-2-2019 Last Reply Date:- 4-2-2019 Goods and Services Tax – GST
Got 7 Replies
GST
Hello everyone,
My query is how to account for the rejected material by the purchaser in Books of Account. The purchaser is denying to issue Debit Note / Rejection Memo. Sale Invoice has already been raised.
Reply By YAGAY andSUN:
The Reply:
You can simply issue a credit note. As per the provisions of GST Laws, Credit Notes/Debit Notes can only be issued by the seller of goods.
Reply By Spudarjunan S:
The Reply:
Issue a tax credit note with the GST component as per section 34 of CGST Act, 2017 if you had made domestic taxable supplies or made zero rated supplies with

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

gst refund on deemed export
Query (Issue) Started By: – Pabitra Basak Dated:- 1-2-2019 Last Reply Date:- 3-2-2019 Goods and Services Tax – GST
Got 4 Replies
GST
Respected Sir / Madam,
Suppose I have purchased Raw Material worth ₹ 10,00,00,000.00 G.S.T. rate 5 % therefore input G.S.T. is ₹ 50,00,000.00 now i have sold goods worth ₹ 5,00,00,000.00 for ₹ 7,50,00,000.00 as domestic sale G.S.T. rate 5 % and goods worth Rs. 50,00,000.00 for Rs 7,50,00,000.00 as deemed export rate 0.1 %. Therefore my total output G.S.T. stands for ₹ 37,50,000.00 for domestic and ₹ 75,000.00 for deemed export. My question is whether i am eligible refund of remaining input G.S.T. or not and if i am eligible for refun

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

GST Reform Boosts Trade, Expands Tax Base, Reduces Rates, and Offers Rs. 80,000 Crore Annual Relief to Consumers.
News
Indian Laws
GST, the biggest taxation reform, led to increase in tax base, higher collections and ease of trade Rates continuously reduced providing relief of about ₹ 80,000 crore annually to consumers Most items of daily use of poor and middle class now in the 0% or 5% tax slab Average GST collection in the current financial year stands at ₹ 97,10
TMI U

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

GST, the biggest taxation reform, led to increase in tax base, higher collections and ease of trade Rates continuously reduced providing relief of about 80,000 crore annually to consumers Most items of daily use of poor and middle class now in the 0% or 5% tax slab Average GST collection in the current financial year stands at 97,100 crore per month as compared to 89,700 crore per month in the first year GST council to appoint a group of ministers to examine and make recommendations to reduce GST burden on home buyers
Budget
Dated:- 1-2-2019

Ministry of Finance
Posted On: 01 FEB 2019 1:26PM by PIB Delhi
The Goods and Services Tax (GST) reforms has resulted in increased tax base, higher collections and ease of trade. While pr

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

Minister said that now returns are fully online and e-way bill system is in place. Inter-state movements have become faster, more efficient, and hassle free with no Entry Tax, check posts, and truck queues among others.
The Finance Minister, Shri Goyal said, “The high taxation levied on multiple commodities in the pre-GST regime has been rationalised and the burden on the consumer, especially the poor and the middle class, has been significantly reduced.” The GST Council, comprising the Centre and States/UTs, finalised the GST rates collectively mostly lower than pre-GST rates. Since then, GST has been continuously reduced providing relief of about ₹ 80,000 crore annually to consumers. Most items of daily use of the poor and middle

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

e to file one annual return only. Similarly, small service providers with turnover upto ₹ 50 lakhs can now opt for composition scheme and pay GST at 6% instead of 18%. More than 35 lakh small traders, manufacturers and service providers will benefit from these trader friendly measures. Soon, businesses comprising over 90% of GST payers will be allowed to file quarterly return, the Minister added.
The Finance Minister asserted that in spite of such major rate reductions and relaxations, revenue trends are encouraging. He said, “The average monthly tax collection in the current year is ₹ 97,100 crore per month as compared to ₹ 89,700 crore per month in the first year. The State revenues are improving with guaranteed 14% ann

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

GST rates to State & Central Government Organizations
Query (Issue) Started By: – SATHYHA DEEP Dated:- 1-2-2019 Last Reply Date:- 4-2-2019 Goods and Services Tax – GST
Got 1 Reply
GST
We are doing Water & Waste Water Treatment Projects to both State & Central Government Organizations like NIMHANS, BHEL, BWSSB etc.
Have a few Queries/Clarifications for which we seek expert opinion.
1) What is the GST Rates for execution of Projects – For Ex: If we undertake execution of STP, WTP P

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

Sectionwise Commentary on The Central Goods And Services Tax (Amendment) Act,2018
By: – Vivek Jalan
Goods and Services Tax – GST
Dated:- 1-2-2019

THE CENTRAL GOODS AND SERVICES TAX (AMENDMENT) ACT, 2018
(NO. 31 OF 2018)
[29th August, 2018]
An Act further to amend the Central Goods and Services Tax Act, 2017.
BE it enacted by Parliament in the Sixty-ninth Year of the Republic of India as follows:-
Short title and commencement
1. (1) This Act may be called the Central 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 Central Government may, by notification in the Official Gazette, appoint:
Provided that different dates may be appointed for different provisions of this Act and any reference in any such provision to the commencement of this Act shall be construed as a reference to the coming into force of that provision.
Old Section:
1. (1) This Act may be called t

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

n 171" shall be substituted;
Old Clause 4 to Section 2:
“adjudicating authority” means any authority, appointed or authorised to pass any order or decision under this Act, but does not include the Central Board of Excise and Customs, the Revisional Authority, the Authority for Advance Ruling, the Appellate Authority for Advance Ruling, the Appellate Authority and the Appellate Tribunal;
(b) in clause (17), for sub-clause (h), the following sub-clause shall be substituted, namely:-
"(h) activities of a race club including by way of totalisator or a license to book maker or activities of a licensed book maker in such club; and";
Old Clause 17 to Section 2:
“business” includes
(a) any trade, commerce, manufacture, profession, vocation, adventure, wager or any other similar activity, whether or not it is for a pecuniary benefit;
(b) any activity or transaction in connection with or incidental or ancillary to sub-clause (a);
(c) any activity or transaction in t

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

ncluded. It may be noted that vide Notifcation No 3/2018 Central Tax dated 23rd January, 2018, the Govt had notified that the value of supply of actionable claim in the form of chance to win in betting , gambling or horse racing in a race club is amended to 100% of the face value of the bet or the amount paid into the totalisator.
The term “services” in this clause leads to ambiguity, as actionable claims have been defined as 'goods' in the CGST Act.
(c) clause (18) shall be omitted;
(d) in clause (35), for the word, brackets and letter "clause (c)", the word, brackets and letter "clause (b)" shall be substituted;
Old Clause 35 to Section 2:
“cost accountant” means a cost accountant as defined in clause (c) of sub-section (1) of section 2 of the Cost and Works Accountants Act, 1959 (23 of 1959);
(e) in clause (69), in sub-clause (f), after the word and figures "article 371", the words, figures and letter "and article 371J" shall be inserte

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

ludes facilitating or arranging transactions in securities;'.
Old Clause 102 to Section 2:
“services” means anything other 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.
Commentary : “services” shall include facilitating or arranging transactions in securities, eg. – some service charges or service fees or documentation fees or broking charges or such like fees or charges are charged in relation to transactions in securities.
Amendment of section 7
3. In section 7 of the principal Act, with effect from the 1st day of July, 2017,
(a) in sub-section (1),
(i) in clause (b), after the words "or furtherance of business;", the word "and" shall be inserted and shall always be deemed to have been inserted;
(ii) in clause (c), after the words &qu

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

ed 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 I, 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 II.
(2) Notwithstanding anything contained in sub-section (1),
(a) activities or transactions specified in Schedule III; or
(b) such activities or transactions undertaken by the Central Government, a State Government or any local authority in which they are engaged as public authorities, as may be notified by the Government on the recommendations of the Council,
shall be treated neither as a supply of goods nor a supply of services.
(3) Subject to the provisions of sub-sections (1) and (2), the Government may, on the recommendations of the Council, specify, by notification, the transactions t

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

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.".
Old Section:
(4) The central tax in respect of the supply of taxable goods or services or both by a supplier, who is not registered, to a registered person shall be paid by such person on reverse charge basis as the recipient 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 the supply of such goods or services or both.
Commentary – The objective to amend Section 9 of the Act empowering the Central Government is to notify classes of registered persons to pay the tax on reverse charge basis in respect of receipt of supplies of certain specified categories of goods or services or both from unregistered suppliers;
Amendment of section 10
5. In section 10 of the p

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

save as provided in sub-section (1), he is not engaged in the supply of services;".
Old Section:
10. (1) Notwithstanding anything to the contrary contained in this Act but subject to the provisions of sub-sections (3) and (4) of section 9, a registered person, whose aggregate turnover in the preceding financial year did not exceed fifty lakh rupees, may opt to pay, in lieu of the tax payable by him, an amount calculated at such rate as may be prescribed, but not exceeding,
(a) one per cent. of the turnover in State or turnover in Union territory in case of a manufacturer,
(b) two and a half per cent. of the turnover in State or turnover in Union territory in case of persons engaged in making supplies referred to in clause (b) of paragraph 6 of Schedule II, and
(c) half per cent. of the turnover in State or turnover in Union territory in case of other suppliers,
subject to such conditions and restrictions as may be prescribed:
Provided that the Government may, by notificati

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

to opt for the scheme under sub-section (1) unless all such registered persons opt to pay tax under that sub-section.
Commentary – The objective to amend Section 10 of the Act so as to enhance the limit of composition levy from one crore rupees to one crore and fifty lakh rupees; Further Even if Composition dealers supply services of value not exceeding 10% of the turnover in the preceding financial year in a State/Union territory or ₹ 5 lakhs, whichever is higher, they are eligible for composition scheme.
Amendment of section 12
6. In section 12 of the principal Act, in sub-section (2), in clause (a), the words, brackets and figure "sub-section (1) of" shall be omitted.
Old Section:
(2) The time of supply of goods shall be the earlier of the following dates, namely:-
(a) the date of issue of invoice by the supplier or the last date on which he is required, under sub-section (1) of section 31, to issue the invoice with respect to the supply; or
Amendment of sec

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

ay be, services
(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 and 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.
Old Section:
(2) Notwithstanding anything contained in this section, no registered person shall be entitled to the credit of any input tax in respect of any supply of goods or services or both to him unless,
(a) he is in possession of a tax invoice or debit note issued by a supplier registered under this Act, or such other tax paying documents as may be prescribed;
(b) he has received the goods or ser

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

here.
Amendment of section 17
9. In section 17 of the principal Act,
(a) in sub-section (3), the following Explanation shall be inserted, namely:
'Explanation.-For the purposes of this sub-section, the expression "value of exempt supply" shall not include the value of activities or transactions specified in Schedule III, except those specified in paragraph 5 of the said Schedule.';
(b) in sub-section (5), for clauses (a) and (b), the following clauses shall be substituted, namely:-
"(a) motor vehicles for transportation of persons having approved seating capacity of not more than thirteen persons (including the driver), except when they are used for making the following taxable supplies, namely:-
(A) further supply of such motor vehicles; or
(B) transportation of passengers; or
(C) imparting training on driving such motor vehicles;
(aa) vessels and aircraft except when they are used
(i) for making the following taxable supplies, namely:-
(A)

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

es, cosmetic and plastic surgery, leasing, renting or hiring of motor vehicles, vessels or aircraft referred to in clause (a) or clause (aa) except when used for the purposes specified therein, life insurance and health insurance:
Provided that the input tax credit in respect of such goods or services or both shall be available where an inward supply of such goods or services or both is used by a registered person for making an outward taxable supply of the same category of goods or services or both or as an element of a taxable composite or mixed supply;
(ii) membership of a club, health and fitness centre; and
(iii) travel benefits extended to employees on vacation such as leave or home travel concession:
Provided that the input tax credit in respect of such goods or services or both shall be available, where it is obligatory for an employer to provide the same to its employees under any law for the time being in force.".
Old Section:
(3) The value of exempt supply under

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

s or services or both of a particular category is used by a registered person for making an outward taxable supply of the same category of goods or services or both or as an element of a taxable composite or mixed supply;
(ii) membership of a club, health and fitness centre;
(iii) rent-a-cab, life insurance and health insurance except where
(A) the Government notifies the services which are obligatory for an employer to provide to its employees under any law for the time being in force; or
(B) such inward supply of goods or services or both of a particular category is used by a registered person for making an outward taxable supply of the same category of goods or services or both or as part of a taxable composite or mixed supply; and
(iv) travel benefits extended to employees on vacation such as leave or home travel concession;
Commentary – The objective to amend Section 17 of the Act is to specify the scope of input tax credit.
* S 17 (3) – No reversal will be required

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

n the Explanation, in clause (c), for the words and figures "under entry 84,", the words, figures and letter "under entries 84 and 92A" shall be substituted.
Old Section:
Explanation.
(c) the term "turnover", in relation to any registered person engaged in the supply of taxable goods as well as goods not taxable under this Act, means the value of turnover, reduced by the amount of any duty or tax levied under entry 84 of List I of the Seventh Schedule to the Constitution and entries 51 and 54 of List II of the said Schedule.
Amendment of section 22
11. In section 22 of the principal Act,
(a) in sub-section (1), after the proviso, the following proviso shall be inserted, namely:-
"Provided further that the Government may, at the request of a special category State and on the recommendations of the Council, enhance the aggregate turnover referred to in the first proviso from ten lakh rupees to such amount, not exceeding twenty lakh rupees and s

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

d under this Act with effect from the appointed day.
(3) Where a business carried on by a taxable person registered under this Act is transferred, whether on account of succession or otherwise, to another person as a going concern, the transferee or the successor, as the case may be, shall be liable to be registered with effect from the date of such transfer or succession.
(4) Notwithstanding anything contained in sub-sections (1) and (3), in a case of transfer pursuant to sanction of a scheme or an arrangement for amalgamation or, as the case may be, de-merger of two or more companies pursuant to an order of a High Court, Tribunal or otherwise, the transferee shall be liable to be registered, with effect from the date on which the Registrar of Companies issues a certificate of incorporation giving effect to such order of the High Court or Tribunal.
Explanation.For the purposes of this section,
(i) the expression “aggregate turnover” shall include all supplies made by the taxable

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

) every electronic commerce operator.
Commentary Small e-commerce operators who are not required to collect TCS u/s 52 would not be liable for registration.
Amendment of section 25
13. In section 25 of the principal Act,
(a) in sub-section (1), after the proviso and before the Explanation, the following proviso shall be inserted, namely:
"Provided further that a person having a unit, as defined in the Special Economic Zones Act, 2005 (28 of 2005), in a Special Economic Zone or being a Special Economic Zone developer shall have to apply for a separate registration, as distinct from his place of business located outside the Special Economic Zone in the same State or Union territory.";
(b) in sub-section (2), for the proviso, the following proviso shall be substituted, namely:
"Provided that a person having multiple places of business in a State or Union territory may be granted a separate registration for each such place of business, subject to such conditions a

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

ertical, subject to such conditions as may be prescribed.
Commentary – S 25(2) – New 2nd, 3rd & 4th Provisio – Persons having multiple places of business in a State or Union territory may obtain separate registrations for each such place of business. Separate registration for a person having a unit(s) in a SEZ.
Amendment of section 29
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), after clause (c), the following proviso shall be inserted, 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), after the proviso, the following proviso shall be inserted, namely:-
"Provided further that during pendency of the proceedings relating to c

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

,
(a) a registered person has contravened such provisions of the Act or the rules made thereunder as may be prescribed; or
(b) a person paying tax under section 10 has not furnished returns for three consecutive tax periods; or
(c) any registered person, other than a person specified in clause (b), has not furnished returns for a continuous period of six months; or
(d) any person who has taken voluntary registration under sub-section (3) of section 25 has not commenced business within six months from the date of registration; or
(e) registration has been obtained by means of fraud, wilful misstatement or suppression of facts:
Provided that the proper officer shall not cancel the registration without giving the person an opportunity of being heard.
Commentary – The objective to amend Section 29 of the Act so as to insert a provision for temporary suspension of registration while cancellation of registration is under process;
Amendment of section 34
15. In section 34 of the

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

be deficient, the registered person, who has supplied such goods or services or both, may issue to the recipient a credit note containing such particulars as may be prescribed.
(2) Any registered person who issues a credit note in relation to a supply of goods or services or both shall declare the details of such credit note in the return for the month during which such credit note has been issued but not later than September following the end of the financial year in which such supply was made, or the date of furnishing of the relevant annual return, whichever is earlier, and the tax liability shall be adjusted in such manner as may be prescribed:
Provided that no reduction in output tax liability of the supplier shall be permitted, if the incidence of tax and interest on such supply has been passed on to any other person.
(3) Where a tax invoice has 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

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

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 India or an auditor appointed for auditing the accounts of local authorities under any law for the time being in force.".
Old Section:
(5) Every registered person whose turnover during a financial year exceeds the prescribed limit shall get his accounts audited by a chartered accountant or a cost accountant and shall submit a copy of the audited annual accounts, the reconciliation statement under sub-section (2) of section 44 and such other documents in such form and manner as may be prescribed.
Commentary: Sec 35 (5) – Any department of the Central or State Government / local authority which is subject to audit by CAG need not get their books of account audited by a CA/ CMA.
Amendment of section 39
17. In section 39 of the principal Act,
(a) in sub-section (1),
(i) for t

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

h conditions and safeguards as may be specified therein.";
(c) in sub-section (9),
(i) for the words "in the return to be furnished for the month or quarter during which such omission or incorrect particulars are noticed", the words "in such form and manner as may be perscribed" shall be substituted;
(ii) in the proviso, for the words "the end of the financial year", the words "the end of the financial year to which such details pertain" shall be substituted.
Old Section:
(1) Every registered person, other than an Input Service Distributor or a non-resident taxable person or a person paying tax under the provisions of section 10 or, section 51 or section 52 shall, for every calendar month or part thereof, furnish, in such form and manner as may be prescribed, a return, electronically, of inward and outward supplies of goods or services or both, input tax credit availed, tax payable, tax paid and such other particulars as may be prescri

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

n of any omission or incorrect particulars shall be allowed after the due date for furnishing of return for the month of September or second quarter following the end of the financial year, or the actual date of furnishing of relevant annual return, whichever is earlier.
Commentary: S 39 (9) Returns – Returns may be amended – It is proposed to provide for allowing taxpayers to amend the returns. The draft forms are already out for public comments.
Insertion of new section 43A
18. After section 43 of the principal Act, the following section shall be inserted, namely:-
Procedure for furnishing return and availing input tax credit.
"43A. (1) Notwithstanding anything contained in sub-section (2) of section 16, section 37 or section 38, every registered person shall in the returns furnished under sub-section (1) of section 39 verify, validate, modify or delete the details of supplies furnished by the suppliers.
(2) Notwithstanding anything contained in section 41, section 42 or

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

ly shall be jointly and severally liable to pay tax or to pay the input tax credit availed, as the case may be, in relation to outward supplies for which the details have been furnished under sub-section (3) or sub-section (4) but return thereof has not been furnished.
(7) For the purposes of sub-section (6), the recovery shall be made in such manner as may be prescribed and such procedure may provide for non-recovery of an amount of tax or input tax credit wrongly availed not exceeding one thousand rupees.
(8) The procedure, safeguards and threshold of the tax amount in relation to outward supplies, the details of which can be furnished under sub-section (3) by a registered person,-
(i) within six months of taking registration;
(ii) who has defaulted in payment of tax and where such default has continued for more than two months from the due date of payment of such defaulted amount,
shall be such as may be prescribed.".
Commentary – New S 43 A : A new section is being

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

e input tax credit on account of State tax shall be utilised towards payment of integrated tax only where the balance of the input tax credit on account of central tax is not available for payment of integrated tax;";
(ii) in clause (d), the following proviso shall be inserted, namely:
"Provided that the input tax credit on account of Union territory tax shall be utilised towards payment of integrated tax only where the balance of the input tax credit on account of central tax is not available for payment of integrated tax;".
Old Section:
(2) The input tax credit as self-assessed in the return of a registered person shall be credited to his electronic credit ledger, in accordance with section 41, to be maintained in such manner as may be prescribed.
(5) The amount of input tax credit available in the electronic credit ledger of the registered person on account of
(a) integrated tax shall first be utilised towards payment of integrated tax and the amount remaining

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

subject to certain conditions.
"49A. Notwithstanding anything contained in section 49, the input tax credit on account of central tax, State tax or Union territory tax shall be utilised towards payment of integrated tax, central tax, State tax or Union territory tax, as the case may be, only after the input tax credit available on account of integrated tax has first been utilised fully towards such payment.
Order of utilisation of input tax credit.
49B. Notwithstanding anything contained in this Chapter and subject to the provisions of clause (e) and clause (f) of sub-section (5) of section 49, the Government may, on the recommendations of the Council, prescribe the order and manner of utilisation of the input tax credit on account of integrated tax, central tax, State tax or Union territory tax, as the case may be, towards payment of any such tax.".
Commentary: New Sec 49A & 49B : The Order for availing the set off of ITC has been rationalized dramatically. This would t

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

(2),
(i) in sub-clause (c), in item (i), 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 unutilised input tax credit under clause (ii) of the first proviso to sub-section (3), the due date for furnishing of return under section 39 for the period in which such claim for refund arises;".
Old Section:
(8) Notwithstanding anything contained in sub-section (5), the refundable amount shall, instead of being credited to the Fund, be paid to the applicant, if such amount is relatable to-
(a) refund of tax paid on zero-rated supplies of goods or services or both or on inputs or input services used in making such zero-rated supplies;
(b) refund of unutilised input tax credit under sub-section (3);
(c) refund of tax paid on a supply which is not provided, eithe

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

e may be, the inputs or input services used in such goods,
(i) if the goods are exported by sea or air, the date on which the ship or the aircraft in which such goods are loaded, leaves India; or
(ii) if the goods are exported by land, the date on which such goods pass the frontier; or
(iii) if the goods are exported by post, the date of despatch of goods by the Post Office concerned to a place outside India;
(b) in the case of supply of goods regarded as deemed exports where a refund of tax paid is available in respect of the goods, the date on which the return relating to such deemed exports is furnished;
(c) in the case of services exported out of India where a refund of tax paid is available in respect of services themselves or, as the case may be, the inputs or input services used in such services, the date of
(i) receipt of payment in convertible foreign exchange, where the supply of services had been completed prior to the receipt of such payment; or
(ii) issue of

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

unds would also be available against the same.
Please see detailed discussion in the commentary u/s 2(6) of The IGST Act 2018.
Amendment of section 79
24. In section 79 of the principal Act, after sub-section (4), the following Explanation shall be inserted, namely:-
'Explanation.For the purposes of this section, the word person shall include "distinct persons" as referred to in sub-section (4) or, as the case may be, sub-section (5) of section 25.'.
Old Section:
(4) Where the amount recovered under sub-section (3) is less than the amount due to the Central Government and State Government, the amount to be credited to the account of the respective Governments shall be in proportion to the amount due to each such Government.
Commentary: Recovery can be made from any branch of a registered person in any state.
Amendment of section 107
25. In section 107 of the principal Act, in sub-section (6), in clause (b), after the words "arising from the said order,&

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

under sub-section (1), unless the appellant has paid-
(a) in full, such part of the amount of tax, interest, fine, fee and penalty arising from the impugned order, as is admitted by him, and
(b) a sum equal to twenty per cent. of the remaining amount of tax in dispute, in addition to the amount paid under sub-section (6) of section 107, arising from the said order, in relation to which the appeal has been filed.
Amendment of section 129
27. In section 129 of the principal Act, in sub-section (6), for the words "seven days", the words "fourteen days" shall be substituted.
Old Section:
(6) Where the person transporting any goods or the owner of the goods fails to pay the amount of tax and penalty as provided in sub-section (1) within seven days of such detention or seizure, further proceedings shall be initiated in accordance with the provisions of section 130.
Commentary – The objective to amend Section 129 of the Act so as to increase the period relating

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

nd shall always be deemed to have been omitted;
(d) after Explanation 2 as so amended, the following Explanation shall be inserted and shall always be deemed to have been inserted, namely:-
'Explanation 3.-For removal of doubts, it is hereby clarified that the expression "eligible duties and taxes" excludes any cess which has not been specified in Explanation 1 or Explanation 2 and any cess which is collected as additional duty of customs under sub-section (1) of section 3 of the Customs Tariff Act, 1975 (51 of 1975).'.
Old Section:
(1) A registered person, other than a person opting to pay tax under section 10, shall be entitled to take, in his electronic credit ledger, the amount of CENVAT credit carried forward in the return relating to the period ending with the day immediately preceding the appointed day, furnished by him under the existing law in such manner as may be prescribed:
Explanation 1.-For the purposes of sub-sections (3), (4) and (6), the express

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

ld in stock on the appointed day.
Explanation 2.-For the purposes of sub-section (5), the expression “eligible duties and taxes” means
(i) the additional duty of excise leviable under section 3 of the Additional Duties of Excise (Goods of Special Importance) Act, 1957 (58 of 1957);
(ii) the additional duty leviable under sub-section (1) of section 3 of the Customs Tariff Act, 1975; (51 of 1975)
(iii) the additional duty leviable under sub-section (5) of section 3 of the Customs Tariff Act, 1975; (51 of 1975)
(iv) the additional duty of excise leviable under section 3 of the Additional Duties of Excise (Textile and Textile Articles) Act, 1978; (40 of 1978.)
(v) the duty of excise specified in the First Schedule to the Central Excise Tariff Act, 1985; (5 of 1986.)
(vi) the duty of excise specified in the Second Schedule to the Central Excise Tariff Act, 1985; (5 of 1986.) and
(vii) the National Calamity Contingent Duty leviable under section 136 of the Finance Act, 2001; (

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

respectively, of their being sent out from the place of business of a job worker on payment of tax within India, or with or without payment of tax for export, as the case may be:
Provided that the principal shall not supply the goods from the place of business of a job worker in accordance with the provisions of this clause unless the said principal declares the place of business of the job worker as his additional place of business except in a case-
(i) where the job worker is registered under section 25; or
(ii) where the principal is engaged in the supply of such goods as may be notified by the Commissioner.
Amendment of Schedule I
30. In Schedule I of the principal Act, in paragraph 4, for the words "taxable person", the word "person" shall be substituted.
Old Section:
4. Import of services by a taxable person from a related person or from any of his other establishments outside India, in the course or furtherance of business.
Commentary: Sch I, Item

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

entering into India.
8. (a) Supply of warehoused goods to any person before clearance for home consumption;
(b) Supply of goods by the consignee to any other person, by endorsement of documents of title to the goods, after the goods have been dispatched from the port of origin located outside India but before clearance for home consumption.";
(ii) the Explanation shall be numbered as Explanation 1 and after Explanation 1 as so numbered, the following Explanation shall be inserted, namely:-
'Explanation 2.For the purposes of paragraph 8, the expression "warehoused goods" shall have the same meaning as assigned to it in the Customs Act, 1962 (52 of 1962).'.
Old Section:
1. Services by an employee to the employer in the course of or in relation to his employment.
2. Services by any court or Tribunal established under any law for the time being in force.
3. (a) the functions performed by the Members of Parliament, Members of State Legislature, Members of

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

e non-taxable territory without such goods entering into India;
b. Supply of warehoused goods to any person before clearance for home consumption; and
There was a clear Double Taxation wherein GST was paid once incase of Bond Sale and thereafter on clearance for home Consumption. While the ITC was available, yet the output tax would be insufficient to set off the ITC.
The same can be explained with an Example –
i. 'A' imports certain material in India and warehouses the goods. Thus the IGST payable gets deferred.
ii. Now 'A' sells the goods to 'B' and the same is covered in Schedule III and there is no IGST
iii. When 'B' clears the material from the Bonded warehouse, IGST is paid and 'B' gets the ITC
c. Supply of goods in case of high sea sales.
High sea sales is a sale carried out by the actual consignee (i.e. the consignee shown in the Bill of Lading) to another buyer while the goods are on high seas or after their dispatch from the port of loading and before their ar

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

ultiple, will be levied and collected only at the time of importation i.e. when the import declarations are filed before the Customs authorities for the customs clearance purposes for the first time. Further, any value addition accruing in each such high sea sale will form part of the value on which IGST is collected at the time of clearance. Thus the final buyer would be responsible for payment of GST on the full value of goods plus any value addition, at time of import.
The GST Councils decision with respect to GST on high sea sales is similar to that of the rules provided under the Customs Tariff Act, 1975. Under the Customs Tariff Act, in respect of imported goods, all duties, taxes, cessessetc will be collected at the time of importation i.e. when the import declarations are filed before the customs authorities for the customs clearance purposes. Clarifications were provided by the GST Council vide Circular No. 33 /2017-Cus dated 1st August, 2017. GST Council Circular No.33/2017

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

ANALYSIS OF GST NOTIFICATIONS ISSUED ON 29th JANUARY 2019
By: – Vivek Jalan
Goods and Services Tax – GST
Dated:- 1-2-2019

ANALYSIS OF CENTRAL TAX NOTIFICATIONS
N No 1/2019 – Central Tax (Rate) – Reverse Charge on unregistered purchases is still on hold
The notifications No 8/2017 Central Tax (Rate) has been rescinded as it has become irrelevant consequent to amendment to Sec 9(4) of The CGST Act 2017.
The Reverse Charge on Unregistered Purchases shall be on hold till the government specifies category of persons u/s 9(4) on whom reverse charge for unregistered purchase shall be applicable.
Amended Section 9(4) is as follows –
"(4) The Government may, on the recommendations of the Council, by notification, 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 bo

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

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.”.
N No 2/2019 – Central Tax
The CGST (Amendment) Act 2018 comes into force w.e.f. 1st February 2019.
1. The CGST (Amendment) Act 2018 comes into force from 1st February 2019 except the following –
A. Section 43A of The CGST Act has been deferred. Hence ITC can be still availed in GSTR 3B on provisional basis irrespective of the reflection in GSTR 2A.
B. Due to the deferment of Sec 43A, the corresponding amendment to Sec 16(2)(c) of The CGST Act 2017 has also been deferred which subjects the ITC taken to Sec 43A. Hence as of now, ITC can be still availed in GSTR 3B on provisional basis irrespective of the reflection in GSTR 2A.
C. Due to the deferment of Sec 43A, the corresponding amendment to Sec 49 of The CGST Act 2017 has also been deferred which provides for the ITC taken to be credited to the ITC

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

the proceedings are completed.
4. Rule 53 (1A) – The details to be furnished in a Cr/Dr Note is provided separately. The same is done to bring into effect the amendments in Sec 34 so that one Cr/Dr Note can be issued for multiple invoices.
5. Rule 83 – Relaxation in time is given for passing GST Practitioners exam. Further the Scope of Services which may be provided by GST Practitioners are enhanced.
6. Rule 85 & 86 – ITC of IGST can now be adjusted against output CGST & SGST before adjusting the corresponding ITC of CGST & SGST.
7. Rule 89 – The declaration for SEZ has been amended incase of refund.
8. Rule 91 & 92 – Relaxations in rules of validating & re-validating the orders of refunds by officers
9. Amendments have been made in Forms PCT-05, GSTR-4, RFD-1, RFD-1A, APL-01, APL-05.
N No 4/2019 – Central Tax
1. The position of Joint Commissioner (Appeals) have been created
N No 5/2019 – Central Tax
1. The rate of Tax in case of Composition levy shall be specified in Rule

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

BLACK TEA – AN AGICULTURAL PRODUCE?
By: – DR.MARIAPPAN GOVINDARAJAN
Goods and Services Tax – GST
Dated:- 1-2-2019

The green tea leaves plucked from the plants are not fit for the human consumption. It cannot be sold in the open market for human consumption. The raw tea leaves are withered by exposure in the shadow of the sun or by heating in trays until pliable. The tea leaves normally undergo the following standard procedures prior to procurement-
* Tea leaves are plucked from the tea plant.
* Thereafter the leaves are rolled by hand or machine in order to break the leaf cells and liberate the juices and enzymes.
* Finally the leaves are completely dried either by further exposure to the sun, over fires, or in a current of hot air.
* Then the leaves are fermented in baskets, glasses and in clothes.
* Thereafter the leaves are subjected to grading with sieves of various sizes.
* The leaves are finally roasted with charcoal for obtaining suitable flavor and

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

e for primary market.
In re 'Nutan Warehousing Company Private Limited' – 2018 (12) TMI 651 – APPELLATE AUTHORITY FOR ADVANCE RULING MAHARASHTRA, the appellant company had been granted licence for carrying out business of warehousing under the Bombay Warehousing Act, 1959. The appellant constructed warehouses at various places including at Fursungi, Pune. M/s Unilever India Exports Limited produces tea of various qualities in bulk either from public tea auctions or directly from the manufacturers of tea in 50 Kg bags and stores them in the said warehouse. The said procurement was undertaken during season. Unilever undertook blending and packing of tea at the warehouse and exported to various overseas countries.
The appellant was of the view that the tea, procured in bulk, either from public tea auctions or directly from manufacturers of tea is an agricultural produce as defined in Notification No. 12/2017-Central Tax (Rate), since the tea is not losing the essential characteristics o

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

color and are now suitable for the human consumption. The nomenclature of the tea has undergone change from the green tea leaves to the black tea. The client of the appellant stated that their main and the sole ingredients are black tea of various qualities, which are blended in the specific proportion as per the specific orders received from their respective customers before packing the same.
The Appellate Authority inferred that the product being stored in the warehouse has got different name, character and uses from the green tea leaves which are cultivated in the tea gardens. The Appellate Authority inferred that there is no doubt that the processes or treatments in which are performed upon the green tea leaves amounts to manufacture as per definition under section 2(72) of Central Goods and Services Tax Act, 2017. The said fact is acknowledged by the appellant.
The Appellate Authority also analyzed the definition of 'agricultural produce' under clause 2(d) of the Notification N

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

and not the cultivators or the producers of the green tea leaves as envisaged under the definition of the agricultural produce. Thus the manufactured products do not fulfill the above prescribed criteria of the agricultural produce. The Appellate Authority held that the black tea cannot be considered as agricultural produce.
The Appellate Authority rejected the contention of the appellant that the said processes carried out on the green tea leaves do have bearing on the taste and color of the tea does not alter the characteristics of the tea. If tea stored in appellant's warehouse is agricultural produce, the same should be covered under the Notification No. 12/2017-Central Tax- Rate. But the processes carried out by the client of the appellant, as submitted by the appellant, leaves no doubt in one's mind that they have lost the nature and characteristics of an agricultural produce in terms of definition of 'agricultural produce' and are ready for secondary or tertiary market. The int

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

Karnataka Goods and Services Tax (Removal of Difficulties) Order, 2019
ORDER NO.01/2019 Dated:- 1-2-2019 Karnataka SGST
GST – States
Karnataka SGST
Karnataka SGST
FINANCE SECRETARIAT
ORDER NO.01/2019
No. FD 47 CSL 2017, Bengaluru, dated 01/02/2019
WHEREAS, sub-section (I) of Section 10 of the Karnataka Goods and Services Tax Act, 2017 (Karnataka Act 27 of 2017) (hereafter in this Order referred to as the said Act) provides that –
(i) a registered person engaged in the supply of services, other than supply of service referred to in clause (b) of paragraph 6 of Schedule Il to the said Act, may opt for the scheme under the said sub-section;
(ii) a person who opts for the said scheme may supply services (other than those ref

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

said scheme, causing hardships to a lot of small businesses and because of that, certain difficulties have arisen in giving effect to the provisions of section 10;
NOW, THEREFORE, in exercise of the powers conferred by Section 172 of the Central Goods and Services Tax Act, 2017, the Government of Karnataka, on recommendations of the Council, hereby makes the following Order, namely: –
I. Short title. -This Order may be called the Karnataka Goods and Services Tax (Removal of Difficulties) Order, 2019.
2. For the removal of difficulties, it is hereby clarified that the value of supply of exempt services by way of extending deposits, loans or advances in so far as the consideration is represented by way of interest or discount, shall not be

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =