HSN Code 7320: Iron and Steel Railway Springs Subject to 18% GST Rate.
Case-Laws
GST
Classification of goods – Springs of Iron and Steel for Railways are classifiable under HSN Code no. 7320
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
Poly Propylene Leno Bags Classified as Plastic Bags Under HSN 3923, Subject to 18% GST Rate.
Case-Laws
GST
Classification of goods – ‘Poly Propylene Leno Bags’ are to be classified as pla
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
Goods and Services Tax, 2017 – Claims of GST Refunds –Disbursement of sanctioned amounts- Request of the CCST for issuing certain instructions to the Treasury .
CCST Ref. No. GST/17/2018 Dated:- 30-1-2019 Andhra Pradesh SGST
GST – States
File No.REV-35024/18/2018-CT I – REV
Office of the Chief Commissioner of State Tax,
Eedupugallu, Vijayawada.
CCST Ref. No. GST/17/2018
Date :-30-01-2019.
Sub: Goods and Services Tax, 2017 – Claims of GST Refunds -Disbursement of sanctioned amoun
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
Assam Goods and Services Tax (Removal of Difficulties) Order, 2018
ORDER No. 1/2018 Dated:- 30-1-2019 Assam SGST
GST – States
Assam SGST
Assam SGST
GOVERNMENT OF ASSAM
ORDERS BY THE GOVERNOR
FINANCE (TAXATION) DEPARTMENT
NOTIFICATION
ORDER No. 1/2018
The 30th January, 2019
No. FTX.56/2017/Pt-II/121.- WHEREAS, sub-section (1) of section 44 of the Assam Goods and Services Tax Act; 2017 (Assam Act No. XXVIII of 2017) (hereafter in this Order referred to as the "said Act") provides that every registered person, other than an Input Service Distributor, a person paying tax under section 51 or section 52, a casual taxable person and a non-resident taxable person, shall furnish an annual return for every financial yea
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
tion;
NOW, THEREFORE, in exercise of the powers conferred by section 172 of the Assam Goods and Services Tax Act, 2017, the Governor of Assam, on recommendations of the Council, hereby makes the following Order, to remove the difficulties, namely:
1. Short title. This Order may be called the Assam Goods and Services Tax (Removal of Difficulties) Order, 2018.
2. In section 44 of the Assam Goods and Services Tax Act, 2017, after subsection (2), the following Explanation shall be inserted, namely:
"Explanation, – For the purposes of this section, it is hereby declared that the annual return for the period from the 1st July, 2017 to the 31st March, 2018 shall be furnished on or before the 31st March, 2019."
RAJIV KUMAR BORA,
Ad
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
M/s Gal Aluminium Extrusion Pvt. Ltd. Versus Commissioner of CGST & Central Excise, Nashik
Central Excise
2019 (2) TMI 1479 – CESTAT MUMBAI – TMI
CESTAT MUMBAI – AT
Dated:- 30-1-2019
Appeal No. E/87862 & 87864/2018 – A/85246-85247/2019
Central Excise
DR. D.M. MISRA, MEMBER (JUDICIAL)
Shri S.B. Awate, Consultant for Appellant
Mrs. Anuradha S Parab, AC (AR) & Shri Anil Choudhary, AC (AR) for Respondent
ORDER
Per: Dr. D.M. Misra
These two appeals are filed against Order-in-Appeal No. NSK-EXCUS-000-APPL-296-17-18 dated 07.03.2018 passed by the Commissioner of CGST & Central Excise (Appeals), Nashik.
2. Briefly stated the facts of the case are that the appellants are engaged in the manufacture of excisable goods na
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
Commissioner (Appeals), who in turn, rejected the Appeals. Hence, the present appeals.
3. Learned consultant for the appellant submits that even though before the original adjudicating authority as well as before the learned Commissioner (Appeals) they have categorically and vehemently argued that common input services were not utilized in the generation of electricity at their windmill, however, invoking Rule 6 of CENVAT Credit Rules, 2004 demands have been confirmed. He, thus, submits that they have enough evidence to establish that input service on which credit availed were not used in the maintenance and repair of the windmill. Therefore, the demand under Rule 6 of CENVAT Credit Rules, 2004 is unsustainable in law.
4. Learned AR for t
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
aintenance and repair of windmill. The contention of the learned Consultant for the appellant that in repair and maintenance of windmill situated away from the factory used for generation of electricity and ultimately consumed in the manufacture of excisable goods, no input services were used for such purpose and they had not availed credit on the same. The learned Commissioner (Appeals) categorically recorded the findings that the appellant failed to produce evidence to substantiate that credit availed on input services were not used exclusively in repair and maintenance of Wind Mills used for generation of electricity, which the appellant controverted before this Tribunal placing evidences. I am of the view that these evidences need to be
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
Nagar Nigam Versus CGST & CE, Dehradun
Service Tax
2019 (2) TMI 1349 – CESTAT NEW DELHI – TMI
CESTAT NEW DELHI – AT
Dated:- 30-1-2019
Service Tax Appeal No. ST/51733/2018 [SM] – A/50165/2019-SM[BR]
Service Tax
MRS. RACHNA GUPTA, MEMBER (JUDICIAL)
Present for the Appellant: Mr. Puneet Sachdeva, CA
Present for the Respondent: Ms. Tamana Alam, DR
ORDER
PER: RACHNA GUPTA
The appellant is Nagar Nigam Haldwani, Uttarakhand and is engaged in providing services of renting of immovable property, providing space for advertisement, etc. The Department, while alleging the said services to be taxable, served a SCN dated 15.04.2015 proposing the recovery of service tax amounting to Rs. 5,24,815/- alongwith the interest at th
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
allenge is prayed to be set aside.
3. Per contra, Ms. Tamana Alam, Ld. DR has submitted that the appellant has not contested the demand as confirmed against him rather the same stands paid as has also been observed in the Order under challenge. The impugned order is on the ground of limitation only, as such is there is no infirmity. Appeal is prayed to be set aside.
4. After hearing both the parties and perusing the record as well as order under challenge, it is observed that the submissions on part of Department appear to be correct. Commissioner(Appeals) vide the impugned order h as not touched the merits of the appeal rather has dismissed the same only on the ground of limitation, it being filed before him after the expiry of period of
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
M/s. Bismi Engineering Contractors, M/s. Arasan Amutham Constructions, M/s. Chendur Construction Company Versus Commissioner of GST & Central Excise, Madurai
Service Tax
2019 (2) TMI 836 – CESTAT CHENNAI – TMI
CESTAT CHENNAI – AT
Dated:- 30-1-2019
Appeal No. ST/440 to 442/2012 – Final Order Nos. 40195-40197/2019
Service Tax
Judicial Member : Ms. Sulekha Beevi C.S. And Technical Member: Shri Madhu Mohan Damodhar
For Appellant : Ms. D.S. Vipula, Advocate
For Respondent: Shri S. Govindarajan, AC (AR)
ORDER
Per Bench
All these appeals involve identical issue and hence they are taken up together for disposal.
2. The common facts in all these appeals are that the appellants were engaged by Tamil Nadu Police Housing Corp
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
.
Service Tax Demand
Bismi Engineering Contractors
48/2010-ST dated 19.10.2010
No. 043-11/dated 31.10.2011
Rs.21,62,590/-
Chendur Construction Company
50/2010-ST dated 19.10.2010
No. 0436-11/dated 31.10.2011
Rs.42,50,834/-
Arasan Amuthan Construction
173/2010-ST dated 23.11.2010
No. 172-11/ dated 5.12.2011
Rs.13,03,444/-
3. Today, when the matter came up for hearing, Ida counsel Ms. D.S. Vipula submitted that the issue is no longer res integra. She relies upon the judgment of the Tribunal in Nithesh Estates Ltd. which was affirmed by the Hon'ble High Court of Karnataka as reported in 2018 (17) GSTL 414 (Kara). She further submits that the Tribunal in Sima Engg. Constructions Vs. Commissioner of Central Excise, Trichy – 201
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
M/s. International Engineering Agencies Versus The Commissioner of GST & CE (Chennai North Commissionerate)
Service Tax
2019 (2) TMI 685 – CESTAT CHENNAI – TMI
CESTAT CHENNAI – AT
Dated:- 30-1-2019
Appeal No. ST/42428/2018 – FINAL ORDER No. 40276/2019
Service Tax
Shri P. Dinesha, Member (Judicial)
Shri P. Ravindran, Advocate, for the Appellant
Shri L. Nandakumar, AC (AR) for the Respondent
ORDER
The appellants, engaged in the business of consultancy, commission agencies and other such related activities, filed a refund claim of service tax for the period April, 2016 to September, 2016, on 25.07.2017. On verification of the refund claim, it came to the notice of the department that the appellants are not eligible for the refund claim since, according to the Asst. Commissioner, as per Rule 5 of Cenvat Credit Rules, 2004 read with Section 11B of Central Excise Act, 1944, a refund of unutilized cenvat credit could be allowed only when the cenvat credit was related
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
Vs. Slovak India Trading Co. (P) Ltd. – 2006 (201) ELT 559 (Kar.) to the effect that in the light of closure of the company, sanction of refund was fully justified since the assessee came out of the modvat scheme. It is also submitted that the above decision of the Hon'ble High Court was confirmed by the Hon'ble Apex Court. On adjudication, the Asst. Commissioner, however, rejected the refund claim by relying on a Larger Bench decision of the Tribunal in the case of Steel Strips Vs. CCE, Ludhiana -2012 (26) STR 27 (Tri.LB), to hold that granting of cash refund would be against the principles of Cenvat Scheme and CCR, with a particular reference to Rule 5 of CCR, which provided only for refund in the case of excess credit remaining surplus on the only solitary account of export and not in any case of balance of cenvat credit lying unutilized and unusable consequent to closure of business. On appeal, the Commissioner (Appeals) upheld the order of the adjudicating authority. Hence, this
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
3. Delta Power Solutions India Pvt. Ltd. Vs. CCE, Pondy2017 (3) TMI 849 – Cestat, Chennai
4. Computer Graphics Ltd. Vs. CCE, Tirunelveli2016 (8) TMI – Cestat Chennai
5. Welcure Drugs & Pharmaceuticals Ltd. Vs. CCE,Jaipur2018 (15) GSTL 257 (Raj.)
3. Per contra, Ld. DR, Shri L. Nandakumar, AC, supported the findings of the lower authorities.
4.1 I have considered the rival submissions and gone through the number of case laws relied on during the hearing. Rule 5 of the Cenvat Credit Rules, 2004 (CCR) reads as under:-
“”Rule 5. Refund of CENVAT Credit. – Where any inputs are used in the final products which are cleared for export under bond or letter of undertaking, as the case may be, or used in the intermediate products cleared for export, the CENVAT credit in respect of the inputs so used shall be allowed to be utilized by the manufacturer towards payment of duty of excise on any final products cleared for home consumption or for export on payment of duty and where for any reason
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
ule (2) deals with a situation where duty drawback is allowed and further lays down that in such a situation, credit could not be refunded. Therefore, it is clear from the above that Rule 5 facilitates the refund of Cenvat credit not merely of the excisable goods exported and therefore to say that Rule 5 provides for refund of un-utilized Cenvat only in the cases of export of service is incorrect. Thus, I am of the view that accepting this interpretation of the Commissioner (Appeals) would lead to serious anomaly, which cannot be the intention of the legislation. Admittedly, the appellant has a huge credit which is now lying with the Revenue; the appellant has surrendered its Service Tax Registration and they have also paid the service tax liability as on the last date of their business. The law cannot, therefore, lead to a situation where a bonafide tax payer's amount could be denied and withheld, for no fault of his. Further, in such a situation a bonafide assessee cannot be left rem
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
GST on Penalty/Fees paid to Govenment Authority
Query (Issue) Started By: – Haresh Raithatha Dated:- 29-1-2019 Last Reply Date:- 30-1-2019 Goods and Services Tax – GST
Got 3 Replies
GST
Whether GST is applicable on any Penalty or Charges payable to Regional Transport Office by any entity? If yes then who is liable to pay GST on such Penalty or Fees?
Reply By CASusheel Gupta:
The Reply:
Services provided by government authority up to ₹ 5000/- is exempt,
Above 5000/- falls in
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
input uotput
Query (Issue) Started By: – prodipto mondal Dated:- 29-1-2019 Goods and Services Tax – GST
GST
i am a tour and travel agent. mainly i booked air/train ticket..example if i booked train ticket then my gst number will be provided in IRCTC website or if i booked air ticket in makemytrip then gst number will be provided in makemytrip website… if i provide my gst number in IRCTC website for train ticket booking then IRCTC provide me ITC, in this case if i claim INPUT then in
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
FMCG Giants Face Penalties for Not Passing Tax Cut Benefits on 109 Products, Accused of Profiteering.
Case-Laws
GST
Profiteering – major manufacturers of Fast Moving Consumer Goods (FMCG) – t
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
Wrong /Incorrect Invoice
Query (Issue) Started By: – mohan sehgal Dated:- 29-1-2019 Last Reply Date:- 30-1-2019 Goods and Services Tax – GST
Got 3 Replies
GST
An invoice has been raised by mentioning wrong GSTIN by clerical error and the goods despatched to the buyer;along with an E Way bill.(Wrong GSTIN has also been quoted on the eway bill)The goods have been received at the destination by the actual buyer the place of supply being the same.(The GSTR 1 for the period concerned has
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
RAJESH ACCOUNTANT
Query (Issue) Started By: – rajesh subramanian Dated:- 29-1-2019 Last Reply Date:- 13-4-2019 Goods and Services Tax – GST
Got 1 Reply
GST
DEAR SIR
WE ARE 100% EOU PVT LTD COMPANY, WE FROM COMPOSITION DEALER, WE ARE RECEIVING BILL FOR BOTH FABRICATION CHAREGES WITH MATERIALS ( ie MATERILAS + LABOUR ) EXAMPLE PAINTING CHARGES WITH COST OF PAINT AND GST NOT CHARGED IN THE BILL
1. IN THIS SCENARIO HOW CAN WE MAKE ACCOUNTING ENTRY.
2. RCM IS APPLICABLE ?
Reply By Sh
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
A view: Why ‘Intermediary Service provided to recipient located outside India’ cannot fall under ‘Inter-State Supply’ and Why IGST is not leviable there against? And alternatively, why such provision treating it as ‘Inter-State Supply’ will be unconstitutional?
By: – Amit Agrawal
Goods and Services Tax – GST
Dated:- 29-1-2019
There is substantial controversy prevalent in trade & industry on whether 'intermediary services provided by 'Supplier located in India' to 'Recipient located outside India'' (hereinafter referred as 'subject supply') falls under Inter-state supply u/s 7 (5) (c) of IGST Act, 2017 or under Intra-State Supply u/s 8 (2) of IGST Act, 2017? And whether service provider is liable to pay IGST on said transaction or SGST & CGST?
Genesis of the controversy involved:
1. Section 13 of IGST Act determines 'Place of Supply' where location of supplier of services or the location of the recipient of services is outside India, while Section 12 of IGS
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
ervices falls under Inter-state supply as defined under section 7 of IGST Act, 2017 (& thereby IGST is payable there against) or under Intra-State Supply as defined under section 8 of IGST Act (& thereby SGST & CGST is payable there against)?
4. One of the views prevalent is that due to the express words used at start of Section 8 (2) which defines intra-state supplies (i.e. Subject to the provisions of section 12, which in turn determines place of supply only when location of supplier and recipient is in India), nature of supply cannot be determined u/s 8 (2) if 'location of service provider or receiver' is outside India. As per this view, subject services falls within inter-state supply as same got covered under residual entry of section 7 (5) (c).
Altogether opposite view is also available which feels that despite the words used at start of Section 8 (2) (i.e. Subject to the provisions of section 12), subject supply indeed fall under intra-state supply due to above-said Section 13
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
pply u/s 8 (2). And hence, this article only deals with the followings questions:
If subject supply is not intra-state u/s 8 (2), question is, can it really fall under inter-state supply and can IGST be levied on such supply?
Our Analysis:
A. IGST Act, 2017 is extended to whole of India as per Section 2 of IGST Act, 2017 as amended.
A1. Reading of only sub-section 5 (c) of section 7 of IGST Act, will be as follows: “Supply of goods or services or both, in the taxable territory, not being an intra-State supply and not covered elsewhere in this section, shall be treated to be a supply of goods or services or both in the course of inter-State trade or commerce”.
A2. From reading of whole section 7, it is clear that sub-section (2) & (4) deals with import of goods / services into the territory of India and same are not relevant for subject supply under consideration here. Sub-section (1) & (3) as well as sub-section (5) (a) actually links determination inter-state supply with a spec
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
e added tax.”
A4. I think that it would be almost uncontroversial to say that there is no difference between GST and VAT / Service Tax as far as above explained economic principals by Apex Court are concerned. Accordingly, unless and until there are any deeming fictions created under law, GST remain destination based consumption tax.
A5. A cogent reading from above economic principles explained by Apex Court read with very minute but very relevant difference between sub-section 7 (5) (c) of as compared to sub-section (1) & (3) of Section 7 (i.e. missing specific reference to 'place of supply' vis-a-vis 'location of supplier', though it indeed requires supply in the taxable territory) can only mean that in order to fall under residual entry of sub-section 5 (c), one of the conditions to be fulfilled is that supply of services / goods must be to a recipient located in India. As subject services are provided to recipient located outside India, same cannot be called inter-state supply un
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
de to create deeming fiction/s under taxation matters and to levy tax thereon.
B2. Even though Parliament has got wide amplitude to create deeming fiction/s under taxation matters, it is also well settled that restrictions imposed by Constitution of India are sacrosanct. And Parliament (& for that matter, even the GST Council) cannot go beyond those restrictions imposed by the Constitution.
Question to be considered is whether above-said difference between 'treated as' and 'treated to be' is sufficient & material enough to treat them as deeming provisions and to make subject services as deemed taxable as inter-state supply and weather IGST is payable on the basis of such deeming fiction? And if yes, whether any such reading of sub-section 7 (5) (c) will make it unconstitutional?
B3. In this regard, it is very important to note & understand implications of changes bought in the Constitution by way of The Constitution (One Hundred and First Amendment) Act, 2016. Some of these changes
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
akes place in the course of inter-State trade or commerce.
The term 'inter-state trade or commerce' is commonly understood as trade or commerce between two states / UT. And same in common parlance is not understood as to also include 'international trade or commerce'.
B3.1.2 For levy of GST on supplies which takes place in the course of inter-State trade or commerce, Parliament has enacted IGST Act. And all such supplies are called as 'inter-state supply' under various sub-sections of Section 7 by treating those supplies as / to be place in the course of inter-State trade or commerce.
B3.1.3 And for levy of GST on supplies which does not takes place in the course of inter-State trade or commerce, Parliament has enacted CGST Act and every state (which includes Union Territory as per clause 26B of Article 366) has enacted respective SGST / UGST Act. These supplies are called as 'intra-state supplies' under Section 8 of the IGST Act.
B3.2 ''Article 269A. Levy and collection of
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
nter-State trade or commerce.''.
B3.2.1 Due to 'explanation' inserted in Article 269A, supply of goods / services in the course of import into the territory of India are 'deemed to be' supply of goods / services in the course of inter-State trade or commerce. However, it is worth noting that for supply of goods / services in the course of export outside the territory of India, there is no such deeming fiction created in Article 269A or anywhere else in the Constitution to treat it as in the course of inter-State trade or commerce.
In other words, Parliament (while amending the Constitution in 2016 to bring GST) was fully conscious of the fact that import of goods / services cannot be called as in the course of inter-State trade or commerce and hence, chosen to insert deeming fiction. But still, it has also consciously chosen not to create such deeming fiction for export of goods / services.
As explained earlier, only Parliament has been given exclusive powers to levy GST on supplies
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
cle 286 & its effect.
B3.3 Amended Article 286 reads as under:
286. Restrictions as to imposition of tax on the sale or purchase of goods.-
(1) No law of a State shall impose, or authorise the imposition of, a tax on the supply of goods or of services or both, where such supply takes place-
(a) outside the State; or
(b) in the course of the import of the goods or services or both into, or export of the goods or services or both out of, the territory of India
(2) Parliament may by law formulate principles for determining when a supply of goods or of services or both in any of the ways mentioned in clause (1).
B3.3.1 Article 286 restricts State from imposing tax where supply of goods / services take place outside the State or where supply of goods / services takes place in course of import or export. Parliament has also empowered under clause (2) to determine when a supply of goods or of services or both in any of the ways mentioned in clause (1). What is worth noting here that 's
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
one of condition is that the place of supply of services is outside India. In other words, wherever the place of supply of services is within India and within same State wherein supplier is located, State has concurrent power to levy SGST (along-with Centre's CGST) and Centre does not have exclusive powers to levy IGST (Article 246A read with Article 269A & Article 286, as explained above).
B3.3.4 Subject supply under discussion here is not treated as export of services under section 2 (6) read with Section 13 (8) (b) of IGST Act. And hence, State has concurrent power (along-with Centre's power to levy CGST) to levy SGST on the subject supply as place of supply is within same state where supplier is located. And, IGST cannot be charged there-against.
B.3.4 Furthermore, various entries of 'List I – Union List' and List II –
State List' (i.e. entries before amendment of year 2016 as well as thereafter) clearly shows that there always was / still is material difference between supplies
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
's constitutionally granted power to levy GST on such supplies when same are neither outside the state nor export. And, for this reason, Section 7 (5) (c), the residual entry, cannot be read into as to make subject supply as inter-state supply.
C. Let's look at entire issue a fresh from point of view of reading of Section 7 (5) (a) & its implications:
Let's take an example that 'management consultancy services' are supplied by provider located in the State of Maharashtra to recipient located outside India and Place of supply is a foreign country u/s 13 (2). Only difficulty is that service provider is getting his consideration in Indian Rupees and not in convertible foreign exchange.
Now, even though said supply is inter-state as per Section 7 (5) (a), supplier is not eligible to make zero-rated supply u/s 16 but is liable to pay IGST due to non-fulfillment of export of service conditions. But, due to provisions of Section 17 (2) of the IGST Act State of Maharashtra will not get any
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
located under various sub-sections of Section 13″.
Summary of Our Views on Subject Supply:
* We are of the view that subject supply (i.e. intermediary services are provided to recipient located outside India by provider located in India) cannot be treated as inter-state supply under Section 7 (5) (c) of IGST Act.
* Hence, no IGST is payable there against even if same does not fulfill condition of export of services. Any attempt to read Section 7 (5) (c) otherwise, will make the provision unconstitutional.
* If said supply also does not fall within the definition of intra-state supply under Section 8 (2) of IGST Act (as “presumed” for this article), then, same is not taxable at all under GST. However, to arrive at that conclusion definitively, question which needs to be reconsidered is whether subject transaction indeed does not fall under intra-state supply u/s 8 (2)?
Reply By Aneesh BU as =
In para 4 you have emphasized on the term 'subject to' used in sec. 8(2) and
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
Comparative insight into the amended CGST and IGST Acts applicable w.e.f. 01.02.2019
By: – Bimal jain
Goods and Services Tax – GST
Dated:- 29-1-2019
Comparative insight into the amended CGST and IGST Acts applicable w.e.f. 01.02.2019
The GST Council in its 32nd meeting held on January 10, 2019, gave approval that the changes made by CGST (Amendment) Act, 2018, IGST (Amendment) Act, 2018, UTGST (Amendment) Act, 2018 and GST (Compensation to States) Amendment Act, 2018 along with the corresponding changes in SGST Acts would be notified w.e.f. February 01, 2019.
Earlier, the Hon'ble President on August 29, 2018 has given its assent to these four crucial amendment bills of GST law, which got published in the official Gazette of India on August 30, 2018.
Now, since the various Amendment Acts are going to be effective from first day of February, 2019, it is highly advisable to plunge into the changes and understand their implications on our business.
For the ease of under
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
ised to pass any order or decision under this Act, but does not include the Central Board of Excise Indirect Taxes and Customs, the Revisional Authority, the Authority for Advance Ruling, the Appellate Authority for Advance Ruling, the Appellate Authority, and the Appellate Tribunal and the Authority referred to in sub-section (2) of section 171.
Changes are made in pursuance of the change in name of CBEC to CBIC.
Further, the National Anti-Profiteering Authority constituted under Section 171 of the CGST Act is also excluded from the definition of 'adjudicating authority'.
Section 2(17)(h) – Definition of 'Business'
“business” includes
(h) services provided by a race club by way of totalisator or a licence to book maker in such club; and
“business” includes
(h) services provided by 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
This change ensures that all activities related to a rac
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
the State's budget to meet the developmental needs of the region.
Section 2(102) – Definition of 'Service'
“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;
“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;
Explanation. For the removal of doubts, it is hereby clarified that the expression “services” includes facilitating or arranging transactions in securities;'.
This explanation provides clarity that although 'securities' [s. 2(h) of Securities Contract Regulations Act, 1956] are excluded from t
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
s 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 that are to be
treated as-
(a) a supply of goods and not as a supply of services; or
(b) a supply of services and not as a supply of goods.
(1) For the purposes of this Act, the expression “supply” includes-
(a) all forms of supply of goods or services or both such as sale, transfer, barter, exchange, licen
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
ly of goods.
Retrospective application w.e.f. 01.07.2017
Term 'supply' is amended to exclude activities/ transactions listed in Schedule II to ensure that the activities/ transactions as per Schedule II is to determine only whether the same is supply of goods or services. Hence, activities/ transactions listed in Schedule II (as supply of service or supply of goods) shall be taxed only when they constitute 'supply' in accordance with provisions of Section 7(1)(a), (b) and (c) of the CGST Act.
Amendments in definition of 'supply' are made retrospectively applicable. Thus, there shall not be any past litigation on account of any transaction merely covered under Schedule II, but otherwise not a 'supply'.
What additionally could have been done:
* Inclusive definition of supply must be made concrete with no subjectivity;
* Clarity must be provided on concept of composite and mixed supply as to manner of determining principal supply and dominant intention;
* Activities relating to
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
ations 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 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”.
Earlier Section 9(4) of the CGST Act has been omitted and instead, an enabling power is granted for the Govt. to notify a class of registered persons who would be liable to pay tax on reverse charge basis in case of receipt of specified categories of goods or services or both (as against taxable goods or services or both) from an unregistered supplier.
The details of such specified persons and specified goods/services are to be notified in future.
What additionally could have been done:
Operation of Section 9(4) in it
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
rnover 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 notification, increase the said limit of fifty lakh rupees to such higher amount, not exceeding one crore rupees, as may be recommended by the Council.
(2) The registered person shall be eligible to opt under sub-section (1), if: –
(a) he is not engaged in the supply of services other than supplies referred to in clause (b) of paragraph 6 of Schedule II;
(b) he is not engaged in making any supply of goods which are not leviable to tax under this Act;
(c) he is not engaged in making any inter-State outward supplies of goods;
(d) he is not engaged in making any supply of goods through an electronic commerce operator who is required to collect tax at source under section 52; and (e) he is not a manufacturer of such goods as may be notified by the Government on the recommendations of the Council:
Prov
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
tion 73 or section 74 shall, mutatis mutandis, apply for determination of tax and penalty.
(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 under sub-section (1) of section 9, an amount of tax calculated at such rate as may be prescribed, but not exceeding,
* one per cent of the turnover in State or turnover in Union territory in case of a manufacturer,
* 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
* 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 Governme
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
R 1 crore to 1.5 crores and further to enable registered manufacturers and traders to opt for composition scheme u/s 10(1) of the CGST Act even if they supply services of value not exceeding 10% of the turnover in a State/Union territory in the preceding FY or INR 5 lakhs, whichever is higher [Presently, registered persons engaged in the supply of services (other than restaurant services) are not eligible for the composition scheme]
The amendment also allows supply of services to the extent of above specified limits, apart from services referred in Para 6(b) of Schedule II i.e. restaurant services. This change seems to be inserted in view of clause (b) of Section 10. Clause (b) mentions about composite rate of tax on restaurant service providers. It clarifies that for clause (b), this limit shall apply for services supplied other than restaurant services.
What additionally could have been done:
* It should be clarified that this amount of 10% of turnover in preceding financial year
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
ness to SME/ MSME Service providers.
Section 12 – Time of supply of goods
12 (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
12 (2) The time of supply of goods shall be the earlier of the following dates, namely: –
(a) 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
This amendment seeks to correct a drafting error and thus includes issuance of invoice/other documents contained in other sub-sections of Section 31 like continuous supply of goods, etc.
What additionally could have been done:
* Clarity may also be provided in respect of determining time of supply of debit notes issued for increase in taxable value and/or tax amount of supply of
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
of section 31 or the date of receipt of payment, whichever is earlier; or
This amendment seeks to correct a drafting error and thus includes issuance of invoice/other documents contained in other sub-sections of Section 31 like continuous supply of services etc.
What additionally could have been done:
* Clarity may also be provided in respect of determining time of supply of debit notes issued for increase in taxable value and/or tax amount of supply of services as the same is issued under Section 34 of the CGST Act.
Section 16(2)(b) – Conditions for availing Input Tax Credit
16(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 services or both.
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
r 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.”;
To satisfy the requirement of receiving services for availing ITC, it is stated that where the services are provided by the supplier to any person on the direction of and on account of registered person it shall be deemed that such registered person has received the services.
Presently this deeming fiction is applicable only in case of “bill-to-ship-to” supply of goods. The same has been extended to services as well.
Section 16(2)(c) – Conditions for availing Input Tax Credit
16(2) ………………………………….
(c) subject to the provisions of section 41, the tax charged in resp
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
dule II, sale of building.
17(3) The value of exempt supply under sub-section (2) shall be such as may be prescribed and shall include supplies on which the recipient is liable to pay tax on reverse charge basis, transactions in securities, sale of land and, subject to clause (b) of paragraph 5 of Schedule II, sale of building.
'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.
It is clarified by way of explanation that no reversal of common ITC shall be required on activities or transactions specified in Schedule III (other than sale of land and, subject to clause (b) of paragraph 5 of Schedule II, sale of building) by excluding it from the ambit of 'exempt supply' for the purpose of reversal.
Section 17(5)(a) – Blocked credit on motor vehicles
(5) Notwithstanding anything contained in sub-sect
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
C) imparting training on driving, such motor vehicle;
(aa) vessels and aircraft except when they are used
(i) for making the following taxable supplies, namely: –
(A) further supply of such vessels or aircraft; or
(B) transportation of passengers; or
(C) imparting training on navigating such vessels; or
(D) imparting training on flying such aircraft;
(ii) for transportation of goods;
(ab) services of general insurance, servicing, repair and maintenance in so far as they relate to motor vehicles, vessels or aircraft referred to in clause (a) or clause (aa):
Provided that the input tax credit in respect of such services shall be available –
(i) where the motor vehicles, vessels or aircraft referred to in clause (a) or clause (aa) are used for the purposes specified therein;
(ii) where received by a taxable person engaged-
(I) in the manufacture of such motor vehicles, vessels or aircraft; or
(II) in the supply of general insurance services in respect of such motor v
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
otor vehicles, vessels or aircraft is allowed to manufacturer of such motor vehicles, vessels or aircraft and to those engaged in supply of general insurance services in respect of such motor vehicles, vessels or aircraft.
Section 17(5)(b) – Other blocked credits
(b) the following supply of goods or services or both-
(i) food and beverages, outdoor catering, beauty treatment, health services, cosmetic and plastic surgery except where an 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 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 s
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
ply;
(ii) membership of a club, health and fitness centre; and
(iii) rent-a-cab, life insurance and health insurance except where
(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.
ITC in respect of food and beverages, health services, renting or hiring of motor vehicles, vessels and aircraft, travel benefits to employees etc., can be availed where the provision of such goods or services is obligatory for an employer to provide to its employees under any law for time being in force.
Further ITC on renting or hiring of motor vehicles, vessels or aircraft is allowed when they are used for purposes specified in clause (a) or (aa).
What additionally could have been done:
* Section 17(5) of the CGST Act must be pruned dow
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
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.
(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 entries 84 and 92A of List I of the Seventh Schedule to the Constitution and entries 51 and 54 of List II of the said Schedule.
This amendment excludes the amount of tax levied under entry 92A of List I from the value of turnover for the purposes of distribution of credit by ISD. The same was inadvertently left out from clause (c) of Explanation to Section 20.
Entry 92A of List I covers taxes on the sale or purchase of goods other than newspapers, where such sale or purchase takes place in the course of inter-State trade or commerce.
Section 22(1) second pr
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
his aggregate turnover in a financial year exceeds ten lakh rupees.
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 subject to such conditions and limitations, as may be so notified.
Proviso is inserted under Section 22(1) so as to enable government to enhance the threshold limit of registration in special category states from ten lakh rupees to maximum twenty lakh rupees
Section 22 Explanation (iii) – Persons liable for registration
Explanation (iii) to section 22 the expression “special category States” shall mean the States as specified in sub-clause (g) of clause (4) of article 279A of the Constitution except the State of Jammu and Kashmir.
Explanation (iii) to section 22 the expression “special category States” shall mean the States as specified in sub-clause (
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
apply for registration in every such State or Union territory in which he is so liable within thirty days from the date on which he becomes liable to registration, in such manner and subject to such conditions as may be prescribed:
Provided that a casual taxable person or a non-resident taxable person shall apply for registration at least five days prior to the commencement of business.
Explanation. – Every person who makes a supply from the territorial waters of India shall obtain registration in the coastal State or Union territory where the nearest point of the appropriate baseline is located.
25 (1) Every person who is liable to be registered under section 22 or section 24 shall apply for registration in every such State or Union territory in which he is so liable within thirty days from the date on which he becomes liable to registration, in such manner and subject to such conditions as may be prescribed:
Provided that a casual taxable person or a non-resident taxable person s
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
nted a single registration in a State or Union territory:
Provided that a person having multiple business verticals in a State or Union territory may be granted a separate registration for each business vertical, subject to such conditions as may be prescribed.
25 (2) A person seeking registration under this Act shall be granted a single registration in a State or Union territory:
Provided that a person having multiple business vertical places of business in a State or Union territory may be granted a separate registration for each such business vertical place of business, subject to such conditions as may be prescribed.
Proviso is substituted to allow persons 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 requirement of having multiple business vertical for obtaining separate registration is dispensed with.
Section 29(1) – Cancellation or Suspension of Registration
29
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
ng 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.
This amendment provides for suspension of registration during pendency of proceedings relating to cancellation of registration. This would relieve the taxpayer of continued compliance burden under the law till such time as the process of allowing cancellation of registration is completed.
Similar changes are also made in sub-section (2) after the proviso of Section 29(2)
Section 34 – Debit and Credit Notes
34 (1) 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 exceed the taxable value or tax payable in respect of such supply, or where the goods supplied are returned by the recipient, or where goods or services or both supplied are found to be deficient, the registered person, who has supplied such goods or services or both, may
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
e credit notes for supplies made in a financial year containing such particulars as may be prescribed.
(2) …
(3) Where a tax invoice has one or more tax invoices have been issued for supply of any goods or services or both and the taxable value or tax charged in that tax invoice is found to be less than the taxable value or tax payable in respect of such supply, the registered person, who has supplied such goods or services or both, shall issue to the recipient a debit note one or more debit notes for supplies made in a financial year containing such particulars as may be prescribed.
The amendment seeks to permit a registered person to issue consolidated credit / debit notes as prescribed under Section 34 of the CGST Act in respect of multiple invoices issued in a Financial Year without linking the same to individual invoices.
However corresponding changes in Rule 53 of the CGST Rules shall also be required which prescribes corresponding invoice number and date of invoice
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
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.
This amendment provides that 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 any CA or CMA.
Section 39 (1)- Furnishing of returns
39 (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 prescribed, on or before the twe
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
T Act relating to 'furnishing of returns', so as to provide for prescribing the procedure for quarterly filing of returns for specified class of registered persons.
Section 39 (7)- Furnishing of returns
39 (7) Every registered person, who is required to furnish a return under sub-section (1) or sub-section (2) or sub-section (3) or sub-section (5), shall pay to the Government the tax due as per such return not later than the last date on which he is required to furnish such return.
39 (7) Every registered person, who is required to furnish a return under sub-section (1) or sub-section (2) or sub-section (3) or sub-section (5), shall pay to the Government the tax due as per such return not later than the last date on which he is required to furnish such return.
Provided that the Government may, on the recommendations of the Council, notify certain classes of registered persons who shall pay to the Government the tax due or part thereof as per the return on or before the last date on
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
ncorrect 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.
39 (9) Subject to the provisions of sections 37 and 38, if any registered person after furnishing a return under sub-section (1) or sub-section (2) or sub-section (3) or sub-section (4) or sub-section (5) discovers any omission or incorrect particulars therein, other than as a result of scrutiny, audit, inspection or enforcement activity by the tax authorities, he shall rectify such omission or incorrect particulars in the return to be furnished for the month or quarter during which such omission or incorrect particulars are noticed in such form and manner as may be prescribed, subject to payment of interest under this Act:
Provided that no such rectification of any omission or incorrect particulars shall be allowed after the due date for
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
ishing the details of outward supplies by the supplier on the common portal, for the purposes of availing input tax credit by the recipient shall be such as may be prescribed.
(4) The procedure for availing input tax credit in respect of outward supplies not furnished under sub-section (3) shall be such as may be prescribed, and such procedure may include the maximum amount of the input tax credit which can be so availed, not exceeding twenty per cent. of the input tax credit available, on the basis of details furnished by the suppliers under the said sub-section.
(5) The amount of tax specified in the outward supplies for which the details have been furnished by the supplier under sub-section (3) shall be deemed to be the tax payable by him under the provisions of the Act.
(6) The supplier and the recipient of a supply 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 ha
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
plier.
However, the supplier and recipient have been made jointly and severally liable to pay tax for details furnished/ not furnished by the supplier in respect of which the return has not been furnished.
Section 48(2) – GST Practitioner
48 (2) A registered person may authorise an approved goods and services tax practitioner to furnish the details of outward supplies under section 37, the details of inward supplies under section 38 and the return under section 39 or section 44 or section 45 in such manner as may be prescribed.
48 (2) A registered person may authorise an approved goods and services tax practitioner to furnish the details of outward supplies under section 37, the details of inward supplies under section 38 and the return under section 39 or section 44 or section 45, and to perform such other functions in such manner as may be prescribed.
This amendment allows the GST practitioner to perform other functions such as, filing refund claim, filing application for cancel
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
n territory tax shall first be utilised towards payment of Union territory tax and the amount remaining, if any, may be utilised towards payment of integrated tax.
49 (5) The amount of input tax credit available in the electronic credit ledger of the registered person on account of
(a)….
(b)….
(c) the State tax shall first be utilized towards payment of State tax and the amount remaining, if any, may be utilized towards payment of integrated tax;
Provided that the 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;”;
(d) the Union territory tax shall first be utilized towards payment of Union territory tax and the amount remaining, if any, may be utilized towards payment of integrated tax;
Provided that the input tax credit on account of Union territory tax shall be utilised towards payment of integrate
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
und settlement on account of IGST.
Therefore, the manner of utilisation of GST credits is as follows:
Credit of IGST to be utilised first for liability of: IGST – CGST – SGST
Then,
* Credit of CGST to be utilised for liability of: CGST/ IGST (If any)
* Credit of SGST to be utilised for liability of: SGST/ IGST (if any)
Section 49B – 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.
This Section provides an enabling power for the Government to prescribe any specific order of utilization of ITC for payment of taxes.
This provision is subject to clause (e) and (f) of Section 49(5) i.
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
able 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) ………..
54 (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 export and exports of goods or services or both or on inputs or input services used in making such zero-rated supplies exports;
(b) ………..
This seeks to amend Section 54 relating to "Refund of tax", to provide that the principle of unjust enrichment will apply in case of a refund claim arising out of supplies of goods or services or both made to a SEZ developer or unit.
Section 54 Explanation (2)(c) – Relevant date for filing refunds in case of export of services
(c) in the case of services exported out of India where a refund of tax p
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
ed to provide that services shall qualify as exports even if the payment for the services supplied is received in Indian rupees as per RBI regulations.
Section 54 Explanation (2)(e) – Relevant date for filing refunds in case of unutilized ITC
Explanation. -For the purposes of this section, –
(2) “relevant date” means-
…………….
(e) in the case of refund of unutilised input tax credit under sub-section (3), the end of the financial year in which such claim for refund arises.
Explanation. -For the purposes of this section, –
(2) “relevant date” means-
…………….
(e) in the case of refund of unutilised input tax credit under clause (ii) of first proviso to sub-section (3), the end of the financial year due date for furnishing of return under section 39 for the period in which such claim for refund arises.
This seeks to prescribe that the relevant date in the case of refund of unutilised ITC arising out of inverted
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
b-section (5) of section 25.
This amendment provides that recovery may be made from distinct persons present in different States / UTs in order to ensure speedy recovery from other establishments of the registered person.
This amendment is anti-industry and will be retrograde in nature. Operation of units in other states should not be affected if there are disputes in one state and a consequent recovery. This should have been dropped in the interest of industry.
Section 107(6) & 112(8) – Appeal to Appellate Authority and Appellate Tribunal
107 (6) No appeal shall be filed 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 ten per cent. of the remaining amount of tax in dispute arising from the said order, in relation to which the appeal has been filed.
107 (6) No appeal shall be filed under sub-section (1), unless the app
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
dship on innocent assesses having genuine case and not easing business for SME/ MSME Sectors.
Pre-deposit amount under GST also should be 7.5% at first level of appeal and 2.5% at second level, totalling together 10% of disputed tax amount subject to maximum of INR 10 Crores, as was in Service tax and Excise era.
112 (8) No appeal shall be filed 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.
112 (8) No appeal shall be filed 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 s
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
n (1) within seven days fourteen days of such detention or seizure, further proceedings shall be initiated in accordance with the provisions of section 130:
Provided that where the detained or seized goods are perishable or hazardous in nature or are likely to depreciate in value with passage of time, the said period of seven days fourteen days may be reduced by the proper officer.
It seeks to increase the time limit before which proceedings under Section 130 can be initiated from seven to fourteen days.
What additionally could have been done:
* Section 129 must be amended to restrict levying of penalties only in cases where there is intent to evade taxes;
* Further, suitable provision must be incorporated which allows releasing of goods without levying penalty once the proof of payment of appropriate tax is shown or a mere technical breach is shown;
* E-Way Bill compliance must be made little easy for small taxpayers upto specified turnover by prescribing simple form with les
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
-section (5), the expression “eligible duties and taxes” means
(i)……
(ii)….
(iii)….
(iv) the additional duty of excise leviable under section 3 of the Additional Duties of Excise (Textile and Textile Articles) Act, 1978.
(v)….”
(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 of eligible duties 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 (1), (3), (4) and (6), the expression “eligible duties” means
(i)…
(ii) …
(iii)…
(iv) the additional duty of excise leviable under section 3 of the Additional Duties of Excise (Textile and Textile Articles) Act, 1978;”
(v)…”
“…. Explan
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
to clarify that the expression “eligible duties and taxes” excludes any cess which has not been specified in Explanation 1 or Explanation 2 above and any cess which is collected as additional duty of customs under sub-section (1) of section 3 of the Customs Tariff Act, 1975.
What additionally could have been done:
Companies which have availed credit of the cesses (as law was not clear) should be allowed time to reverse the credit within 30 days from the date of the enactment without interest or penalty implication.
Section 143(1)(b) – Job work procedure
143 (1) A registered person (hereafter in this section referred to as the “principal”) may under intimation and subject to such conditions as may be prescribed, send any inputs or capital goods, without payment of tax, to a job worker for job work and from there subsequently send to another job worker and likewise, and shall,
(a) bring back inputs, after completion of job work or otherwise, or capital goods, other than moulds and
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
er in this section referred to as the “principal”) may under intimation and subject to such conditions as may be prescribed, send any inputs or capital goods, without payment of tax, to a job worker for job work and from there subsequently send to another job worker and likewise, and shall,
(a) bring back inputs, after completion of job work or otherwise, or capital goods, other than moulds and dies, jigs and fixtures, or tools, within one year and three years, respectively, of their being sent out, to any of his place of business, without payment of tax;
(b) supply such inputs, after completion of job work or otherwise, or capital goods, other than moulds and dies, jigs and fixtures, or tools, within one year and three years, 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 busines
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
use being shown, be extended by the Commissioner for a further period not exceeding one year and two years respectively.
Schedule I – Supply made without consideration
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
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.
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 liable to tax when received from a related person or from any of their establishments outside India.
Schedule II – Activities or Transactions to be treated as supply of goods or supply of services
Change in heading
Change in heading retrospectively w.e.f. 01.07.2017
Schedule III – Activities or transactions which shall be treate
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
shall have the same meaning as assigned to it in the Customs Act, 1962.
The scope of Schedule III is expanded to include merchant trading, supply of goods in the course of High Seas Sale and Sale of imported warehoused goods. Thus, these transactions shall nether be treated a supply of goods nor supply of services.
Further, there shall be no reversal of common credit on account of these supplies.
What additionally could have been done:
* Amendments in Schedule III should have been made effective retrospectively from 01.07.2017;
* Relief in the form of possible refunds should be granted for the tax already paid earlier on sale of goods from custom bonded warehouse;
* Inter-Company supply of services provided by Head office to branch office/ representative office of the same legal entity having a common PAN located in the taxable territory or vice versa should be included in Schedule III so that the same does not qualify as supply of services liable to GST, like centralized fun
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
vice are not merely establishments of a distinct person in accordance with Explanation 1 in section 8.
(6) “export of services” means the supply of any service when,
(i) the supplier of service is located in India;
(ii) the recipient of service is located outside India;
(iii) the place of supply of service is outside India;
(iv) the payment for such service has been received by the supplier of service in convertible foreign exchange or in Indian Rupees wherever permitted by the Reserve Bank of India; and
(v) the supplier of service and the recipient of service are not merely establishments of a distinct person in accordance with Explanation 1 in section 8.
This amendment allows receipt of payment in Indian rupees in case of export of services wherever permitted by the RBI. This is a taxpayer-friendly measure.
Explanation to Section 2(16) – Meaning of 'governmental authority'
2 (16) “non-taxable online recipient” means any Government, local authority, governmental authority, a
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
ry.
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 Panchayat under article 243G or municipality under article 243W of the Constitution.
The reference to Panchayat under Article 243G is sought to be added in the definition of Governmental authority.
Section 5(4) – Reverse charge on procurements made from unregistered suppliers
(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 suc
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
abling power for the Govt. to notify a class of registered persons who would be liable to pay tax on reverse charge basis in case of receipt of specified categories of goods or services or both from an unregistered supplier.
The details of such specified persons and specified goods/services are to be notified in future.
What additionally could have been done:
Operation of Section 5(4) in its present form, is not conducive as the registered recipient requires to raise self-invoice, capturing individual HSN/ SAC codes for procurement of specified goods or services, which is operationally not easing business and should be done away completely.
Explanation to Section 8 – Establishments of distinct persons
Explanation 1. For the purposes of this Act, where a person has,
(i) an establishment in India and any other establishment outside India;
(ii) an establishment in a State or Union territory and any other establishment outside that State or Union territory; or
(iii) an establishm
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
(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.
12 (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:
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.
In order to provide a level playing field to the domestic transportation companies and promote export of goods, this proviso provides that transportation of goods from a place in India to a place outside India by a transporter located in India would
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
rs;
13 (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 physically 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 or for any other treatment or process and are exported after such repairs or treatment or process without being put to any other use in India, other than that which is required for such repairs or treatment or process.
Amendment is made to not t
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
rtioned under clauses (a) to (f).
New proviso in Section 20 – Application of provisions of the CGST Act
Provided also that where the appeal is to be filed before the Appellate Authority or the Appellate Tribunal, the maximum amount payable shall be fifty crore rupees and one hundred crore rupees respectively.
This amendment prescribes the maximum ceiling of INR 50 crores/ 100 crores as pre-deposit for filing appeal to Appellate Authority/ Appellate Tribunal respectively.
The amendment is made in line with amendments proposed in Section 107(6) and 112(8) of the CGST Act, 2017.
Hope the information will assist you in your Professional endeavours. In case of any query/ information, please do not hesitate to write back to us.
Thanks & Best Regards,
Bimal Jain
FCA, FCS, LLB, B.Com (Hons)
Reply By Pankaj Sharma as =
Dear Would like to discusses one scenario on new proviso inserted by amendment in Sec 12(8) of IGST Act, 2017, where Service of Transportation of Goods by Road, Courie
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
Businesses Cannot Use or Refund ITC on Vehicles Bought for Core Activities, as per GST Regulations.
Case-Laws
GST
Input Tax Credit (ITC) on vehicles – Whether they can utilize/ refund the ITC
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
P. Prabhakar Versus The Commissioner of GST & Central Excise Government of India Newry Towers, The Deputy Commissioner Office of the Deputy Commissioner GST & Central Excise
Indian Laws
2019 (3) TMI 675 – MADRAS HIGH COURT – TMI
MADRAS HIGH COURT – HC
Dated:- 29-1-2019
O.P.NO.787 OF 2018
Indian Laws
Mr. Justice M. Govindaraj
For the Petitioner : Mr.V.Sivakumar
For the Respondents : Mr.S.R.Sundar for Ms.R.Hemalatha
ORDER
This Original Petition is filed by the petitioner seeking to appoint a Sole Arbitrator to hear and decide the dispute arose out of the Lease Agreement dated 01.03.2017 between the petitioner and the respondents.
2. The facts leading to the case on hand is that the respondents, who are Central Government Departments, entered into a Lease Agreement with the petitioner / landlord, on 01.03.2017. The rent paid by the respondents is very meagre. Fixation of fair rent falls within the domain of the respondents, which is based on the rate fixed by th
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
em”, the arbitration cannot be invoked. In the instant case, the petitioner is entitled to file a petition for enhancement of rent under Section 4 of the Tamil Nadu Buildings (Lease and Rent Control) Act, 1960. In case the respondents fail to vacate and commit willful default, the petitioner is entitled to evict the respondents under Section 10 of the Tamil Nadu Buildings (Lease and Rent Control) Act, 1960. It is also the apprehension of the petitioner that the respondents, being a Government Agency, they may rely on the Public Premises (Eviction of Unauthorised Occupants) Act, 1971 and also on the basis of arbitration clause will raise objections with regard to maintainability of the eviction petition filed under the above mentioned provisions of the Tamil Nadu Buildings (Lease and Rent Control) Act, 1960.
6. In this regard, it is relevant to extract paragraphs 17, 18 and 24 of the judgment of the Hon'ble Supreme Court in NATRAJ STUDIOS (P) LTD. VS. NAVRANG STUDIOS [1981 (1) SCC
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
ain and try any suit or proceeding between a landlord and a tenant relating to recovery of rent or possession of any premises, (2) to try any suit or proceeding between a licensor and a licensee relating to the recovery of licence fee or charge, (3) to decide any application made under the Act and, (4) to deal with any claim or question arising out of the Act or any of its provisions. Exclusive jurisdiction to entertain and try certain suits, to decide certain applications or to deal with certain claims or questions does not necessarily mean exclusive jurisdiction to decide jurisdictional facts also. Jurisdictional facts have necessarily to be decided by the Court where the jurisdictional question falls to be decided, and the question may fall for decision before the Court of exclusive jurisdiction or before the Court or ordinary jurisdiction. A person claiming to be a landlord may sue his alleged tenant for possession of a building on grounds specified in the Rent Act. Such a suit wil
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
he question whether there is relationship of landlord and tenant between the parties or such other jurisdictional questions may have to be determined by the Court where it falls for determination-be it the Court of Small Causes or the ordinary Civil Court. If the jurisdictional question is decided in favour of the Court of exclusive jurisdiction the suit or proceeding before the ordinary Civil Court must cease to the extent its jurisdiction is ousted.
24. In the light of the foregoing discussion and the authority of the precedents, we hold that both by reason of S.28 of the Bombay Rents, Hotel and Lodging House Rates Control Act, 1947 and by reason of the broader considerations of public policy mentioned by us earlier and also in Deccan Merchants Cooperative Bank Ltd. v. M/s. Dalichand Jugraj Jain & Ors. (supra), the Court of Small Causes has and the Arbitrator has not the jurisdiction to decide the question whether the respondent-licensee-landlord is entitled to seek possession of t
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
National Engineering Industries Ltd. Versus CGST, Jaipur
Central Excise
2019 (3) TMI 177 – CESTAT NEW DELHI – TMI
CESTAT NEW DELHI – AT
Dated:- 29-1-2019
Excise Appeal No. E/51554/2018-ST [SM] – Final ORDER NO. 50246/2019
Central Excise
MRS. RACHNA GUPTA, MEMBER (JUDICIAL)
Present for the Appellant: Ms. Priyanka Goel, Advocate
Present for the Respondent: Mr. P.R. Gupta, D.R.
ORDER
PER: RACHNA GUPTA
Present appeal is preferred against the Order-in-Appeal No.129 dated 19.03.2018. After hearing both the parties, it is observed that the narrow compass of adjudication of present appeal is as to:
Whether Department can suo moto adjust the amount of sanctioned refund claim to another demand against the appellant.
2. Order in Appeal has answered the aforesaid query in affirmative. While challenging the said decision, ld. Counsel for appellant has relied upon M/s. Nirmal Products (Unit-I) vs. CCE, Jaipur reported in 2017 (10) TMI 5 -CESTAT, New Delhi.
3. Per-co
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
very of sums due to Government.
In respect of duty and any other sums of any kind payable to the Central Government under any of the provisions of this Act or of the rules made there-under including the amount required to be paid to the credit of the Central Government under Section 11D, the officer empowered by the Central Board of Excise and Customs constituted under the Central Boards of Revenue Act, 1963 (54 of 1963) to levy such duty or require the payment of such sums [may deduct or require any other Central Excise officer or a proper officer referred to in section 142 of the customs act, 1962 (52 of 1962) to deduct the amount so payable from any money owing to the person from whom such sums may be recoverable or due which may be in his hands or under his disposal or control or may be in the hands or under disposal or control of such other officer, or may recover the amount] by attachment and sale of excisable goods belonging to such person; and if the amount payable is not so
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
on Board Circular No. 967 dated 01.01.2013 but as quoted in the said para itself, the Circulars speaks about the recovery to be initiated within 30 days after the filing of appeal, if no stay is granted or after the disposal of stay petition, whichever is earlier. But it is observed that by the time, the impugned order in appeal was passed. Since the deposit at the rate of 7.5% is made mandate, the question of filing of any stay applications is absolutely redundant concept.
8. Hence, I am of the opinion that Commissioner (Appeals) has committed an error while relying upon such direction of the Board, which was technically as well as practically of no relevance at the time of impugned order. In view of entire discussion, it is held that the Department was not entitled to suo moto adjust the refund claim. I draw my support from Nirmal Products (supra) as relied upon by the appellant wherein it was held that refund cannot be adjusted against the demands which are subjudice and Section 11
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
Seeks to rescind notification No. 1132-F.T. dated 28.06.2017 in view of bringing into effect the amendments (regarding RCM on supplies by unregistered persons) in the GST Acts
175-F.T. – 1/2019-State Tax (Rate) Dated:- 29-1-2019 West Bengal SGST
GST – States
West Bengal SGST
West Bengal SGST
GOVERNMENT OF WEST BENGAL
FINANCE DEPARTMENT
REVENUE
NOTIFICATION No. 1/2019-State Tax (Rate)
No. 175-F.T.
Howrah, the 29th day of January, 2019.
In exercise of the powers conferred by
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
Seeks to amend notification No. 1142-F.T. dated 28.06.2017 so as to align the rates for Composition Scheme with WBGST Rules, 2017
174-F.T. – 5/2019-State Tax Dated:- 29-1-2019 West Bengal SGST
GST – States
West Bengal SGST
West Bengal SGST
GOVERNMENT OF WEST BENGAL
FINANCE DEPARTMENT
REVENUE
NOTIFICATION
No. 174-F.T.
Howrah, the 29th day of January, 2019.
No. 5/2019-State Tax
In exercise of the powers conferred by sub-section (1) of section 10 of the West Bengal Goods and
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
West Bengal Goods and Services Tax (Amendment) Rules, 2019.
173-F.T. – . 3/2019-State Tax Dated:- 29-1-2019 West Bengal SGST
GST – States
West Bengal SGST
West Bengal SGST
GOVERNMENT OF WEST BENGAL
FINANCE DEPARTMENT
REVENUE
NOTIFICATION No. 3/2019-State Tax
No. 173-F.T.
Howrah, the 29th day of January, 2019.
In exercise of the powers conferred by section 164 of the West Bengal Goods and Services Tax Act, 2017 (West Ben. Act XXVIII of 2017), the Governor is pleased hereby to make the following rules further to amend the West Bengal Goods and Services Tax Rules, 2017, namely: –
1. (1) These rules may be called the West Bengal Goods and Services Tax (Amendment) Rules, 2019.
(2) Save as otherwise provided in these rules, they shall come into force on the first day of February, 2019.
2. In the West Bengal Goods and Services Tax Rules, 2017, –
(1) in Chapter-II, in the heading, for the words "Composition Rules", the words, "Composition Levy" s
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
laces of business if he is paying tax under section 9 for any other place of business;
(c) all separately registered places of business of such person shall pay tax under the Act on supply of goods or services or both made to another registered place of business of such person and issue a tax invoice or a bill of supply, as the case may be, for such supply.
Explanation.- For the purposes of clause (b), it is hereby clarified that where any place of business of a registered person that has been granted a separate registration becomes ineligible to pay tax under section 10, all other registered places of business of the said person shall become ineligible to pay tax under the said section.
(2) A registered person opting to obtain 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 mu
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
rule (1) or sub-rule (2), shall not make any taxable supply during the period of suspension and shall not be required to furnish any return under section 39.
(4) The suspension of registration under sub-rule (1) or sub-rule (2) shall be deemed to be revoked upon completion of the proceedings by the proper officer under rule 22 and such revocation shall be effective from the date on which the suspension had come into effect.";
(6) after rule 41, the following rule shall be inserted, namely: –
"41A. Transfer of credit on obtaining separate registration for multiple places of business within the State.-(1) 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
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
figures and letter "and entry 92A" shall be inserted;
(8) in rule 43, –
(a) in sub-rule (1), in clause (g), in the Explanation, after the word and figures "entry 84", the words, figures and letter "and entry 92A" shall be inserted;
(b) in sub-rule (2), in the Explanation, clause (a) shall be omitted;
(9) in rule 53,-
(a) in sub-rule (1), –
(i) after the words and figures "section 31", the words and figures "and credit or debit notes referred to in section 34" shall be omitted;
(ii) clause (c) shall be omitted;
(iii) clause (i) shall be omitted;
(b) after sub-rule (1), the following sub-rule shall be inserted, namely:-
"(1A) A credit or debit note referred to in section 34 shall contain the following particulars, namely:-
(a) name, address and Goods and Services Tax Identification Number of the supplier;
(b) nature of the document;
(c) a consecutive serial number not exceeding sixteen characters, in one or mul
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
gures "other than those referred to in the proviso to sub-section (5) of section 35," shall be inserted;
(11) in rule 83,-
(a) in sub-rule (1), in clause (a), for the words "Central Board of Excise" the words "Central Board of Indirect Taxes" shall be substituted;
(b) in sub-rule (3), in the second proviso, for the words "eighteen months", the words "thirty months" shall be substituted;
(c) for sub-rule (8), the following sub-rule shall be substituted, namely:-
"(8) A goods and services tax practitioner can undertake any or all of the following activities on behalf of a registered person, if so authorised by him to-
(a) furnish the details of outward and inward supplies;
(b) furnish monthly, quarterly, annual or final return;
(c) make deposit for credit into the electronic cash ledger;
(d) file a claim for refund;
(e) file an application for amendment or cancellation of registration;
(f) furnish information for
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
figures and letters "section 49A and section 49B," shall be inserted;
(13) in rule 86, in sub-rule (2), after the word and figures "section 49", the words,figures and letters "or section 49A or section 49B," shall be inserted;
(14) in rule 89, in sub-rule (2), for clause (f), the following clause shall be substituted, namely:-
"(f) a declaration to the effect that tax has not been collected from the Special Economic Zone unit or the Special Economic Zone developer, in a case where the refund is on account of supply of goods or services or both made to a Special Economic Zone unit or a Special Economic Zone developer;";
(15) in rule 91,-
(a) in sub-rule (2), the following proviso shall be inserted, namely:-
"Provided that the order issued in FORM GST RFD-04 shall not be required to be revalidated by the proper officer.";
(b) in sub-rule (3), the following proviso shall be inserted, namely:-
"Provided that the payment a
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
GST REG-01, in instruction 12, –
(a) for the words "business verticals" at both the places where they occur, the words "places of business" shall be substituted;
(b) for the word “vertical”, the words “places of business” shall be substituted;
(19) in FORM GST REG-17, at the end, the following "Note" shall be inserted, namely:-
"Note: – Your registration stands suspended with effect from – (date).";
(20) in FORM GST REG-20, at the end, the following "Note" shall be inserted, namely:-
"Note: – Suspension of registration stands revoked with effect from – (date).";
(21) after FORM GST ITC-02, the following form shall be inserted, namely:-
FORM GST ITC-02A
[See rule 41A]
Declaration for transfer of ITC pursuant to registration under sub-section (2) of section 25
1.
GSTIN of transferor
2.
Legal name of transferor
3.
Trade name of transferor, if any
4.
GSTIN of transferee
5.
Legal name of transferee
6.
T
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
nd entries shall be inserted, namely:-
“6
To furnish information for generation of e-way bill
7
To furnish details of challan in FORM GST ITC-04
8
To file an application for amendment or cancellation of enrolment under rule 58
9
To file an intimation to pay tax under the composition scheme or withdraw from the said scheme”.
(23) in FORM GSTR -4,-
(a) in clause 6, for the Table, the following Table shall be substituted, namely:-
Rate of tax
Total Turnover
Out of turnover reported in (2), turnover of services
Composition tax amount
Central Tax
State/UT Tax
1
2
3
4
5
(b) in clause 7, for the Table, the following Table shall be substituted, namely:-
“Quarter
Rate
Original details
Revised details
Total Turnover
Out of turnover reported in (3), turnover of services
Central Tax
State/UT Tax
Total Turnover
Out of turnover reported in (7), turnover of services
Central Tax
State/UT Tax
1
2
3
4
5
6
7
8
9
10”;
(24) in FORM GST RFD-01, for the declara
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
UT tax
Integrated tax
Cess
Total amount
a) Admitted amount
Tax/ Cess
< total >
Interest
< total >
Penalty
< total >
Fees
< total >
Other charges
< total >
< total >
b) Pre-deposit (10% of disputed tax/cess but not exceeding ₹ 25 crore each in respect of CGST, SGST or cess, or not exceeding ₹ 50 crore in respect of IGST and ₹ 25 crore in respect of cess)
Tax/Cess
< total >
(b) Details of payment of admitted amount and pre-deposit (pre-deposit 10% of the disputed tax and cess but not exceeding ₹ 25 crore each in respect of CGST, GGST or cess, or not exceeding ₹ 50 crore in respect of IGST and ₹ 25 crore in respect of cess)
Sr. No.
Description
Tax payable
Paid through Cash/ Credit Ledger
Debit entry no.
Amount of tax paid
Central tax
State/UT tax
Integrated tax
CESS
1
2
3
4
5
6
7
8
9
1.
Integrated
Cash Ledger
tax
Credit Ledger
2.
Central tax
Cash Ledger
Credit Ledger
3.
State/UT tax
Cash Ledger
Credit
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
t not exceeding ₹ 50 crore each in respect of CGST, GGST or cess or not exceeding ₹ 100 crore in respect of IGST and ₹ 50 crore in respect of cess)” shall be substituted;
(ii) in sub-clause (b), for the brackets, words and figures “(pre-deposit 20% of the disputed admitted tax and Cess)”, the brackets, words, figures and letters”(pre-deposit of 20% of the disputed admitted tax and cess but not exceeding ₹ 50 crore each in respect of CGST, GGST or cess or not exceeding ₹ 100 crore in respect of IGST and ₹ 50 crore in respect of cess)” shall be substituted;
(b) after clause 14, the following shall be inserted, namely:-
“15. Place of supply wise details of the integrated tax paid (admitted amount only) mentioned in the Table in sub-clause (a) of clause 14 (item (a)), if any
Place of Supply (Name of State/UT)
Demand
Tax
Interest
Penalty
Other
Total
1
2
3
4
5
6
7”.
Admitted amount [in the Table in sub-clause (a) of clause 14 (item (a))
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
Seeks to bring into force the CGST (Amendment) Act, 2018
(02/2019) No. FD 47 CSL 2017 Dated:- 29-1-2019 Karnataka SGST
GST – States
Karnataka SGST
Karnataka SGST
FINANCE SECRETARIAT
NOTIFICATION (02/2019)
No. FD 47 CSL 2017, Bengaluru, dated: 29/01/2019
In exercise of the powers conferred by sub-section (2) of section 1 of the Karnataka Goods and Services Tax (Amendment) Act, 2018 (Karnataka Act 3 of 2018), the Government of Karnataka hereby appoints the 1st day of February, 20
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
Commissioner of CGST, Navi Mumbai Versus Jain Engineers Pvt. Ltd.
Service Tax
2019 (2) TMI 770 – CESTAT MUMBAI – TMI
CESTAT MUMBAI – AT
Dated:- 29-1-2019
APPEAL No. ST/88169/2018, ST/CO/86803/2018 – A/85235/2019
Service Tax
Dr. D.M. Misra, Member (Judicial)
Shri S.K. Hattangadi, Assistant Commissioner (AR), for appellant
Shri Sumit Jhunjhunwala, C.A., for respondent
ORDER
This is an appeal filed by the Revenue against order-in-appeal No. 90/GH/2017-18/Raigad dated 16.3.2018 passed by Commissioner of CGST & Central Excise (Appeals), Mumbai.
2. Briefly stated the facts of the case are that the respondent is engaged in providing taxable services under the category of 'construction of residential and commercial complex service' and during the relevant period 2004-05 to 2007-08, they have availed cenvat credit on the inputs used in providing output service and also claimed benefit of Notification No.1/2006-ST dated 1.3.2006. During the course of audit in the yea
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
peal. Hence, the Revenue is in appeal.
3. Learned AR for the Revenue has submitted that the respondent has been a repeated offender inasmuch as for the period 2004-05 to 2007-08, they wrongly availed the abatement under Notification No.1/2006-ST dated 1.3.2006 since they have also simultaneously availed cenvat credit, in violation of the condition of the said notification. The said amount was paid by the respondent on being pointed out by the audit in 2009. Thereafter, the same mistake was repeated for the subsequent period i.e. 2009-10 to 2010-11 involving a total service tax of Rs. 1.80 lakhs with interest of Rs. 53,121/- which they have paid on 1.3.2012. The learned Commissioner (Appeals) has not considered the fact that there was no bona fide mistake on the part of the respondent, hence penalty under Section 76 and 78 has been rightly invoked and penalty imposed by the adjudicating authority.
4. Learned Chartered Accountant for the respondent has submitted that since under a bona
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
which initially, they have availed both cenvat credit as well as abatement, which they have reversed on 14.12.2009 after being pointed out by the department during the course of the audit. On discharging the said liability, the audit para has been closed. In support, the respondent placed a formal audit report issued by the department on 2.3.2010.
7. It is his contention that for the second period, they have not availed both the benefits, but to avoid litigation, the service tax along with interest was paid by them pursuant to the audit objection. He has submitted that the learned Commissioner (Appeals) dropped the penalty after considering all these facts. I find merit in the contention of the learned C.A. for the appellant. The learned Commissioner (Appeals) taking note of the fact that initially, the contravention was under bona fide mistake and on reversal of the cenvat credit amount, the audit para being closed and subsequent payment of service tax along with interest was not in
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
Equisol Corporation Versus Commissioner of CGST, Mumbai East
Service Tax
2019 (2) TMI 769 – CESTAT MUMBAI – TMI
CESTAT MUMBAI – AT
Dated:- 29-1-2019
APPEAL No. ST/87289/2018 – A/85223/2019
Service Tax
Dr. D.M. Misra, Member (Judicial)
Shri Sumit Jhunjhunwala, C.A., for appellant
Shri S.B. Mane, Assistant Commissioner (AR), for respondent
ORDER
Heard both sides.
2. This is an appeal filed against order-in-appeal No. CD/TR(APPEALS)/ME/72/2017-18 dated 6.3.2018 passed by Commissioner of Central Excise & GST (Appeals), Mumbai.
3. Briefly stated the facts of the case are that the appellant is engaged in providing taxable services which are in the nature of supply of tangible goods during the relevant period 2011-12
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
. Aggrieved by the said order, they filed appeal before the learned Commissioner (Appeals) who, in turn, rejected their appeal. Hence the present appeal.
4. Learned Chartered Accountant for the appellant submits that the particulars of disputed invoices against which inadmissible credit alleged to have been mentioned at para 4 of the show cause notice were not the invoices on which credit was availed by them. In support, he has referred to the invoices on which credit was taken, enclosed at pages 94 to 97 of appeal paper book. It is his plea that pursuant to the allegation of non-receipt of the service, they obtained a certificate from the service receiver, namely M/s. Silicon Real Estate Pvt. Ltd., Kolkata and also placed the payment part
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
not raised before the adjudicating authority nor in their reply to the show cause notice.
6. I have carefully considered the submissions of both sides. I find that the short issue involved in the present appeal is whether the five disputed invoices on which the appellant had availed credit, are genuine or otherwise. Prima facie I find that the invoices which are mentioned in the show cause notice are not relevant to the proceeding. The invoices which are now produced by the learned AR for the Revenue, being the same also enclosed by the learned CA for the appellant, but different from the ones in the show cause notice, therefore, in my opinion, it is prudent to remand the matter to the adjudicating authority to ascertain the fact. Needless
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
Gujarat Goods and Services Tax (Amendment) Rules, 2019
03/2019-State Tax Dated:- 29-1-2019 Gujarat SGST
GST – States
Gujarat SGST
Gujarat SGST
NOTIFICATION
FINANCE DEPARTMENT
Sachivalaya, Gandhinagar
Dated the 29th January, 2019
Notification No. 3/2019-State Tax
No. (GHN-11)GSTR -2019/S.164(37)TH:- In exercise of the powers conferred by section 164 of the Gujarat Goods and Services Tax Act, 2017 (Guj.25 of 2017), the Government of Gujarat hereby makes the following rules further to amend the Gujarat Goods and Services Tax Rules, 2017, namely:-
1. (1) These rules may be called the Gujarat Goods and Services Tax (Amendment) Rules, 2019.
(2) Save as otherwise provided in these rules, they shall come into force on the first day of February, 2019.
2. In the Gujarat Goods and Services Tax Rules, 2017 (hereinafter referred to as the said rules), in Chapter-II, in the heading, for the words “Composition Rules”, the words, “Composition Levy” shall be substituted.
3. In
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
10 for any of his places of business if he is paying tax under section 9 for any other place of business;
(c) all separately registered places of business of such person shall pay tax under the Act on supply of goods or services or both made to another registered place of business of such person and issue a tax invoice or a bill of supply, as the case may be, for such supply.
Explanation.- For the purposes of clause (b), it is hereby clarified that where any place of business of a registered person that has been granted a separate registration becomes ineligible to pay tax under section 10, all other registered places of business of the said person shall become ineligible to pay tax under the said section.
(2) A registered person opting to obtain 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 registrat
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
tion has been suspended under sub-rule (1) or sub-rule (2), shall not make any taxable supply during the period of suspension and shall not be required to furnish any return under section 39.
(4) The suspension of registration under sub-rule (1) or sub-rule (2) shall be deemed to be revoked upon completion of the proceedings by the proper officer under rule 22 and such revocation shall be effective from the date on which the suspension had come into effect.”.
7. In the said rules, after rule 41, the following rule shall be inserted, namely:-
“Rule 41A. Transfer of credit on obtaining separate registration for multiple places of business within a State or Union territory.-(1) 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 unutilized input tax credit lying in his electronic credit ledger to any or all of the newly registered place of busi
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
Explanation, after the word and figures “entry 84”, the word, figures and letter “and entry 92A” shall be inserted.
9. In the said rules, in rule 43,-
(a) in sub-rule (1), in clause (g), in the Explanation, after the word and figures “entry 84”, the words, figures and letter “and entry 92A” shall be inserted.
(b) in sub-rule (2), in the Explanation, clause (a) shall be omitted.
10. In the said rules, in rule 53,-
(a) in sub-rule (1), after the words and figures “section 31”, the words and figures “and credit or debit notes referred to in section 34” shall be omitted;
(b) in sub-rule (1) clause (c) shall be omitted;
(c) in sub-rule (1) clause (i) shall be omitted;
(d) after sub-rule (1), the following sub-rule shall be inserted, namely:-
“(1A) A credit or debit note referred to in section 34 shall contain the following particulars, namely:-
(a) name, address and Goods and Services Tax Identification Number of the supplier;
(b) nature of the document;
(c) a consecu
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
ery registered person”, the words, brackets and figures “other than those referred to in the proviso to sub-section (5) of section 35,” shall be inserted.
12. In the said rules, in rule 83,-
(a) in sub-rule (1), in clause (a), for the words “Central Board of Excise” the words “Central Board of Indirect Taxes” shall be substituted;
(b) in sub-rule (3), in the second proviso, for the words “eighteen months”, the words “thirty months” shall be substituted;
(c) for sub-rule (8), the following sub-rule shall be substituted, namely:-
“(8) A goods and services tax practitioner can undertake any or all of the following activities on behalf of a registered person, if so authorised by him to-
(a) furnish the details of outward and inward supplies;
(b) furnish monthly, quarterly, annual or final return;
(c) make deposit for credit into the electronic cash ledger;
(d) file a claim for refund;
(e) file an application for amendment or cancellation of registration;
(f) furnish in
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
e words, figures and letters “section 49A and section 49B,” shall be inserted.
14. In the said rules, in rule 86, in sub-rule (2), after the word and figures “section 49”, the words,figures and letters “or section 49A or section 49B,” shall be inserted.
15. In the said rules, in rule 89, in sub-rule (2), for clause (f), the following clauseshall be substituted, namely:-
“(f) a declaration to the effect that tax has not been collected from the Special Economic Zone unit or the Special Economic Zone developer, in a case where the refund is on account of supply of goods or services or both made to a Special Economic Zone unit or a Special Economic Zone developer;”.
16. In the said rules, in rule 91,-
(a) in sub-rule(2), the following proviso shall be inserted, namely:-
“Provided that the order issued in FORM GST RFD-04 shall not be required to be revalidated by the proper officer.”;
(b) in sub-rule (3), the following proviso shall be inserted, namely:-
“Provided that the paym
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
FORM GST REG-01, in instruction 12, for the words “business verticals” at both the places where they occur, the words “places of business” shall be substituted.
20. In the said rules, in FORM GST REG-17, at the end, the following “Note”shall be inserted, namely:-
“Note: – Your registration stands suspended with effect from – (date).”.
21. In the said rules, in FORM GST REG-20, at the end, the following “Note”shall be inserted, namely:-
“Note: – Your registration stands suspended with effect from – (date).”.
22. In the said rules, after FORM GST ITC-02, the following form shall be inserted, namely:-
FORM GST ITC-02A
[See rule 41A]
Declaration for transfer of ITC pursuant to registration under sub-section (2) of section 25
1.
GSTIN of transferor
2.
Legal name of transferor
3.
Trade name of transferor, if any
4.
GSTIN of transferee
5.
Legal name of transferee
6.
Trade name of transferee, if any
7. Details of ITC to be transferred
Tax
Amount of matched ITC availa
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
e-way bill
7
To furnish details of challan in FORM GST ITC-04
8
To file an application for amendment or cancellation of enrolment under rule 58
9
To file an intimation to pay tax under the composition scheme or withdraw from the said scheme”.
24. In the said rules, in FORM GSTR -4,-
(a) in clause 6,for the Table, the following Table shall be substituted, namely:-
Rate of tax
Total Turnover
Out of turnover reported in (2), turnover of services
Composition tax amount
Central Tax
State/UT Tax
1
2
3
4
5
(b) in clause 7, for the Table, the following Table shall be substituted, namely:-
“Quarter
Rate
Original details
Revised details
Total Turnover
Out of turnover reported in (3), turnover of services
Central Tax
State/UT Tax
Total Turnover
Out of turnover reported in (7), turnover of services
Central Tax
State/UT Tax
1
2
3
4
5
6
7
8
9
10”;
25. In the said rules, in FORM GST RFD-01, for the declaration under rule 89(2)(f), the following declarati
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
tax
Cess
Total amount
a) Admitted amount
Tax/ Cess
< total >
Interest
< total >
Penalty
< total >
Fees
< total >
Other charges
< total >
< total >
b) Pre-deposit (10% of disputed tax/cess but not exceeding ₹ 25 crore each in respect of CGST, SGST or cess, or not exceeding ₹ 50 crore in respect of IGST and ₹ 25 crore in respect of cess)
Tax/Cess
< total >
(b) Details of payment of admitted amount and pre-deposit (pre-deposit 10% of the disputed tax and cess but not exceeding ₹ 25 crore each in respect of CGST, GGST or cess, or not exceeding ₹ 50 crore in respect of IGST and ₹ 25 crore in respect of cess)
Sr. No.
Description
Tax payable
Paid through Cash/ Credit Ledger
Debit entry no.
Amount of tax paid
Central tax
State/UT tax
Integrated tax
CESS
1
2
3
4
5
6
7
8
9
1.
Integrated
Cash Ledger
tax
Credit Ledger
2.
Central tax
Cash Ledger
Credit Ledger
3.
State/UT tax
Cash Ledger
Credit Ledger
4.
CESS
C
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
t not exceeding ₹ 50 crore each in respect of CGST, GGST or cess or not exceeding ₹ 100 crore in respect of IGST and ₹ 50 crore in respect of cess)” shall be substituted;
(ii) in sub-clause (b), for the brackets, words and figures “(pre-deposit 20% of the disputed admitted tax and Cess)”, the brackets, words, figures and letters”(pre-deposit of 20% of the disputed admitted tax and cess but not exceeding ₹ 50 crore each in respect of CGST, GGST or cess or not exceeding ₹ 100 crore in respect of IGST and ₹ 50 crore in respect of cess)” shall be substituted;
(b) after clause 14, the following shall be inserted, namely:-
“15. Place of supply wise details of the integrated tax paid (admitted amount only) mentioned in the Table in sub-clause (a) of clause 14 (item (a)), if any
Place of Supply (Name of State/UT)
Demand
Tax
Interest
Penalty
Other
Total
1
2
3
4
5
6
7”.
Admitted amount [in the Table in sub-clause (a) of clause 14 (item (a))
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
