GST Applies to Services by Business Facilitators and Correspondents for Banks: Key Compliance Details for Financial Services.
Circulars
GST
GST on Services of Business Facilitator (BF) or a B
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GST Clarification: Consistent Tax Rate for Food and Beverage Services in Educational Institutions Ensures Compliance and Eliminates Ambiguity.
Circulars
GST
Clarification on GST rate applicab
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GST Clarifies Picture Printing Services Classification Under Code 998386 for Accurate Tax Compliance and Understanding.
Circulars
GST
Clarification on issue of classification of service of pr
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GST Clarification on Tax Liabilities and Exemptions for ADB and IFC in Recent Circulars.
Circulars
GST
Applicability of GST on Asian Development Bank (ADB) and International Finance Corporati
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GST Rules for IIM Programs Clarified: Guidelines Ensure Compliance and Transparency in Educational Services Tax Liabilities.
Circulars
GST
Applicability of GST on various programmes conducted
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E-commerce companies granted extension to file FORM GSTR-8 for October-December 2018 until January 31, 2019.
Circulars
GST
Due date for furnishing the statement in FORM GSTR-8 by e-commerce c
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Deadline Extended for GSTR-9, GSTR-9A, and GSTR-9C Annual Returns for FY 2017-18 to June 30, 2019.
Circulars
GST
Due date for furnishing of annual returns in FORM GSTR-9, FORM GSTR-9A and rec
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Input Tax Credit Deadline for Fiscal Year 2017-18 Extended to March 31, 2019.
Circulars
GST
Due date for availing ITC on the invoices or debit notes relating to such invoices issued during th
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GST-ITC ON HOTEL BILLS
Query (Issue) Started By: – SAFETAB LIFESCIENCE Dated:- 2-1-2019 Last Reply Date:- 5-1-2019 Goods and Services Tax – GST
Got 6 Replies
GST
Dear Experts,
Our Company Employees/Directors/Guests are staying at Hotels on official visit.
We are getting Loding and Boarding Bills jointly and sometimes separately.
Sometimes, in other state hotels, they are charges only CGST+SGST through our
GST Number is different from their state. Some hotels giving IGST.
1. Shall we avail ITC of IGST and CGST+SGST ???
2. Shall we avail ITC for Loding amount only or Lodging and boading together. ???
Reply By KASTURI SETHI:
The Reply:
Place of supply is covered under Section 12 (3)(c) of IGST Act, 2017. Only CGST & SGST is to be charged by the owner of Hotel. Service is intangible in nature. Company employee goes to Hotel for stay in a State so service is supplied and consumed in that particular State. How IGST can be charged by Hotel owner ? See Para No.10(C) of Boa
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voices.
The applicants submitted that the management, maintenance, and repair service obtained from the service providers for the running of these establishments has the direct benefit to the business operations of the applicant. Since the services are used in the course of and, also, in furtherance of its business, it is entitled to utilize credit of input tax paid by the service providers for paying output tax on the supplies made by the applicant in terms of section 16 of CGST Act. That the supplies, on which the applicant seeks to take input tax credit, are not blocked in section 17(5) of CGST Act. It was also stated that it would be entitled to take credit of tax paid on works contract service only for activities, for which the expenditure is claimed as revenue expenditure and not capitalized. It would not claim any credit with respect to services for which the expenditure is capitalized. After hearing contentions from both sides, the authority noted that the establishment of hos
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ishing, maintaining and furnishing guest houses including landscaping by way of gardening or otherwise is neither a perquisite nor a statutory obligation. “It is purely for providing accommodation service to guests including employees on tour. This is, in fact, a business requirement to maintain such facilities and accordingly, the applicant is entitled to input tax credit of the tax paid on inward supply of input and input services for maintenance of the guest house, transit house, and training hostels, but excluding the food and beverages provided in such establishments.”
Reply By KASTURI SETHI:
The Reply:
M/s. YAGAY AND SUN,
Thank you, Sir. I was in search of this decision of AAR but could not trace out and posted reply on the basis of my memory.
Reply By Alkesh Jani:
The Reply:
Dear Experts,
This discussion is worth to be noted, but to add a small part, that decision of AAR is applicable only to that state and the person who have applied for it. Therefore, based on this, the
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The proportion of value attributable to different States or Union territories, under sub-section (7) of section 13 of the said Act, in the case of supply of services by way of admission …..
Rule 9
GST
IGST Rules
Integrated Goods and Services Tax Rules, 2017
1[9. The proportion of value attributable to different States or Union territories, under sub-section (7) of section 13 of the said Act, in the case of supply of services by way of admission to, or organisation of a cultural,
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The proportion of value attributable to different States or Union territories, under sub-section (7) of section 13 of the said Act, in the case of supply of services directly in relation to an immovable property …..
Rule 8
GST
IGST Rules
Integrated Goods and Services Tax Rules, 2017
1[8. The proportion of value attributable to different States or Union territories, under sub-section (7) of section 13 of the said Act, in the case of supply of services directly in relation to an immovable property, including services supplied in this regard by experts and estate agents, supply of accommodation by a hotel, inn, guest house, club or campsite, by whatever name called, grant of rights to use immovable property, services for carry
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The supply of services attributable to different States or Union territories, under sub-section (7) of section 13 of the said Act, in the case of services supplied in respect of goods which are required to be made physically available …..
Rule 7
GST
IGST Rules
Integrated Goods and Services Tax Rules, 2017
1[7.The supply of services attributable to different States or Union territories, under sub-section (7) of section 13 of the said Act, in the case of 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, or in the case of services supplied to an individual, represented ei
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l be determined in the following manner, namely:-
(i) in the case of services supplied on the same goods, by equally dividing the value of the service in each of the States and Union territories where the service is performed;
(ii) in the case of services supplied on different goods, by taking the ratio of the invoice value of goods in each of the States and Union territories, on which service is performed, as the ratio of the value of the service performed in each State or Union territory;
(iii) in the case of services supplied to individuals, by applying the generally accepted accounting principles.
Illustration-1: A company C which is located in Kolkata is providing the services of testing of a dredging machine and the testing servic
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The supply of services attributable to different States or Union territories, under sub section (11) of section 12 …..
Rule 6
GST
IGST Rules
Integrated Goods and Services Tax Rules, 2017
1[6. The supply of services attributable to different States or Union territories, under sub section (11) of section 12 of the said Act, in the case of supply of services relating to a leased circuit where the leased circuit is installed in more than one State or Union territory and a consolidated amount is charged for supply of such services, shall be taken as being in each of the respective States or Union territories, and in the absence of any contract or agreement between the supplier of service and recipient of services for separately
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nts lying in the State or Union territory.
Illustration 1: A company T installs a leased circuit between the Delhi and Mumbai offices of a company C. The starting point of this circuit is in Delhi and the end point of the circuit is in Mumbai. Hence one point of this circuit is in Delhi and another in Maharashtra. The place of supply of this service is in the Union territory of Delhi and the State of Maharashtra. The service shall be deemed to have been provided in the ratio of 1:1 in the Union territory of Delhi and the State of Maharashtra, respectively.
Illustration 2: A company T installs a leased circuit between the Chennai, Bengaluru and Mysuru offices of a company C. The starting point of this circuit is in Chennai and the end poin
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The supply of services attributable to different States or Union territories, under sub- section (7) of section 12 ……
Rule 5
GST
IGST Rules
Integrated Goods and Services Tax Rules, 2017
1[5. The supply of services attributable to different States or Union territories, under sub- section (7) of section 12 of the said Act, in the case of-
(a) services provided by way of organisation of a cultural, artistic, sporting, scientific, educational or entertainment event , including supply of services in relation to a conference, fair exhibition, celebration or similar events; or
(b) services ancillary to the organisation of any such events or assigning of sponsorship to such events ,
where the services are supplied to a person
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The supply of services attributable to different States or Union territories, under sub section (3) of section 12 …..
Rule 4
GST
IGST Rules
Integrated Goods and Services Tax Rules, 2017
1[4. The supply of services attributable to different States or Union territories, under sub section (3) of section 12 of the Integrated Goods and Services Tax Act, 2017 (hereinafter in these rules referred to as the said Act), in the case of-
(a) services directly in relation to immovable property, including services provided by architects, interior decorators, surveyors, engineers and other related experts or estate agents, any service provided by way of grant of rights to use immovable property or for carrying out or co-ordination of construction work; or
(b) lodging accommodation by a hotel, inn, guest house, homestay, club or campsite, by whatever name called, and including a houseboat or any other vessel ; or
(c) accommodation in any immovable property for organising any marria
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services ancillary to such services, the supply of services shall be treated as made in each of the respective States or Union territories, in proportion to the number of nights stayed in such property;
(ii) in case of all other services in relation to immovable property including services by way of accommodation in any immovable property for organising any marriage or reception etc., and in cases of supply of accommodation by a hotel, inn, guest house, club or campsite, by whatever name called where such property is a single property located in two or more contiguous States or Union territories or both, and services ancillary to such services, the supply of services shall be treated as made in each of the respective States or Union territories, in proportion to the area of the immovable property lying in each State or Union territory;
(iii) in case of services provided by way of lodging accommodation by a house boat or any other vessel and services ancillary to such services, the su
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rtly in State S1 say 12,000 square feet and partly in State S2, say 8000 square feet. Site preparation work has been entrusted to T. The ratio of land in the two states works out to 12:8 or 3:2 (simplified). The place of supply is in both S1 and S2. The service shall be deemed to have been provided in the ratio of 12:8 or 3:2 (simplified) in the States S1 and S2 respectively. The value of the service shall be accordingly apportioned between the States.
Illustration 3: A company C provides the service of 24 hours accommodation in a houseboat, which is situated both in Kerala and Karnataka inasmuch as the guests board the house boat in Kerala and stay there for 22 hours but it also moves into Karnataka for 2 hours (as declared by the service provider). The place of supply of this service is in the States of Kerala and Karnataka. The service shall be deemed to have been provided in the ratio of 22:2 or 11:1 (simplified) in the states of Kerala and Karnataka, respectively. The value of th
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GST Revenue collection for December 2018
GST
Dated:- 2-1-2019
GST Revenue collection for December 2018
₹ 94,726 crore of total gross GST revenue collected in the month of December
The total gross GST revenue collected in the month of December, 2018 is ₹ 94,726 crore of which CGST is ₹ 16,442 crore, SGST is ₹ 22,459 crore, IGST is ₹ 47,936 crore (including ₹ 23,635 crore collected on imports) and Cess is ₹ 7,888 crore (including ₹ 838 crore collected on imports). The total number of GSTR 3B Returns filed for the month of November up to 31st December, 2018 is 72.44 lakh.
The government has settled ₹ 18,409 crore to CGST and ₹ 14,793 crore to SGST from IGST as regular
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IGST revised Refund processing : m/r
TRADE NOTICE: 02/2019/CCP/JMR Dated:- 2-1-2019 Trade Notice
Customs
OFFICE OF THE COMMISSIONER OF CUSTOMS (PREVENTIVE)
'SARDA HOUSE' BEDI BANDAR ROAD OPP. PANCHVATI, JAMNAGAR -361001
F. No. VIII/48-20/Sys/Single Window/ 15-16
DATED 02.01.2019
TRADE NOTICE: 02/2019/CCP/JMR
Sub: IGST revised Refund processing : m/r
1. Attention of all the Importers, Customs Brokers and the Members of the Trade are invited to the Board's Circular No.40/2018 dated 24.10.2018 on the above subject.
2. In this connection, an option has been made available in DBK_AC role for the processing of Revised IGST Refunds. The option is available only for SBS which have already been scrolled once, but with an
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e total revised IGST amount against each invoice and not the differential amount. The scroll amount will be calculated by the system for the differential amount only. Separate category of revised IGST scrolls (temp and final) is available in the scroll generation option of CLK and DBK_AC roles.
9. It may further be ensured that the officer satisfies herself/ himself of the correctness of the revised refund amount claimed by the exporter in RRR and approve only the eligible amount as per the declarations made in GSTR 1 and actual exported quantity.
10. Any difficulties in this regard, may be communicated to [communication detail of Local EDI, Customs Formation] and nsm.ices@icegate.gov.in.
Sd/-
(M.K. Srivastava)
COMMISSIONER,
CUSTOMS (
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0
28512
28512
28512
51100389
28512
28512
28512
$1100390
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0
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GST Invoice mismatch management
SB No 7276642
WINDOWS
,
11/07/2017
CHA:.
Inv Semno
Exporter: 1
1
Old Approved amount
20000
Revised IGST amount approved Differential IGST
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Shri Bharat Shukla & Shapers Industries Limited Versus CGST, C.E. & C.C., Bhopal
Central Excise
2019 (1) TMI 172 – CESTAT NEW DELHI – TMI
CESTAT NEW DELHI – AT
Dated:- 2-1-2019
Excise Appeals No. E/51309 & 50891/2018 [SM] – FINAL ORDER No. 50001-50002/2019
Central Excise
MRS. RACHNA GUPTA, MEMBER (JUDICIAL)
Present for the Appellant: Mr. Anil Mishra, Advocate
Present for the Respondent: Mr. S. Nunthuk, DR
ORDER
PER: RACHNA GUPTA
Present Order disposes of two separate Appeals. With respect to the same SCN and same adjudication however pertaining to the Company and its Director, the facts relevant for the purpose are as follows:
The appellants are engaged in manufacture of TMT Bars and mis-rolls which are generated during manufacture of TMT Bars. Upon an intelligence the officers of Directorate General of Central Excise Intelligence, Bhopal conducted the simultaneous search of the factory premises of M/s Shapers Industries Limited and that of the office pre
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iew of the said confiscation and the penalty under Rule 25 of Central Excise Rules, 2002 was also proposed. The said SCN was initially adjudicated by Assistant Commissioner vide Order No. 11 dated 29.09.2017. Being aggrieved an Appeal before Commissioner (Appeals) was filed who vide Order under challenge i.e. one bearing No. 427 dated 22.01.2018 has upheld the demand thereby rejecting the Appeal. Resultantly, the Appeals are before this Tribunal.
2. I have heard Mr. Anil Mishra, Ld. Advocate for the appellant and Mr. S. Nunthuk, Ld. DR for the Department.
3. IT is submitted that the adjudicating authority below has passed the Order based on presumption and surmises as there is no other evidence on record proving the alleged clandestine removal of the finished goods of the appellant. It is submitted that Panchnama itself is vitiated for want of the witnesses proving the same. No opportunity of cross examination of panchas witnesses was given to the appellants. The appellant has relied
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ts, it is submitted on behalf of the Department that the Department had recovered incriminating documents during the simultaneous search of the factory as well as the office premises of the appellants. Resultantly, the alleged difference in stock quantity was noticed. The Director of appellant in his statement dated 01.06.2016 / 10.06.2016 has admitted the noticed shortcoming. Since, the same amounts to admission on the part of the appellant there was no further onus of the Department to prove the alleged clandestine removal. Finally justifying the Order the Appeals in hand are prayed to be dismissed.
5. After hearing both the parties and perusing the entire record, I observe that the adjudicating authority has confirmed the proposed confiscation of the stock and the penalties on the Director of the appellant Company on the ground of unaccounted production and clearances being evidenced by the categorical admission of the Director and Supervisor of the appellant Company. Also on the g
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notifications issued under these rules with intent to evade payment of duty,
Then, all such goods shall be liable to confiscation and the producer or manufacturer or registered person of the warehouse or a registered dealer, as the case ay be, shall be liable to a penalty not exceeding the duty on the excisable gods in respect of which any contravention of the nature referred to in clause (a) or clause (b) or clause (c) or clause (d) has been committed, or [rupees tow thousand], whichever is greater. (2) An order under sub-rule (1) shall be issued by the Central Excise Officer, following the principles of natural justice.
Rule 26 of Central Excise Rules 2002 defines as under:
(1) Any person who acquires possession of, or is in any way concerned in transporting, removing, depositing, keeping, concealing, selling or purchasing, or in any other manner deals with, any excisable goods which he knows or has reason to believe are liable to confiscation under the Act or these rules, sha
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on of the provisions of law and that too with an intention to evade duty. Hon'ble High Court of Delhi in the case Commissioner of Central Excise Vs. Ganpati Rolling Pvt. Ltd. 2016 (338) ELT 587 has held :
9. The opening words of Rule 25 is “Subject to the provisions of section 11ac of the ce act” and not an non-obstante clause which would have begun with the words “Notwithstanding the provisions of section 11ac of the ce act”. It is plain that the CE Rules are subordinate legislation and have to abide the discipline of the statute under which they are made. Where Rule 25(1) expressly begins with “Subject to the provisions of section 11ac of the ce act”, obviously the requirements of Section 11AC will have to constitute a condition subject to which the power under Rule 25 can be exercised. Rule 25 of the CE Rules itself came up for interpretation before the Gujarat High Court in Saurashtra Cement Ltd. (supra) wherein para 17 it was observed as under:
“17. It is also to be borne in mi
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sent, penalty under Section 11AC cannot be levied. Since Rule 25 can be invoked subject to the provisions of Section 11 AC of the Act, as a natural corollary, the ingredients mentioned in Section 11AC are also required to be considered while determining the question of levying of penalty under Rule 25 of the Central Excise Rules.”
10. In other words, if the ingredients of Section 11AC are not shown to be fulfilled, the penalty under Section 11AC cannot be levied. Therefore, given the wording of Rule 25 of the CE Rules, the ingredients mentioned in Section 11AC have to be considered before determining the question of penalty. In the instant case it is not in dispute that the show cause notice ('SCN') made no reference to Section 11AC and, therefore, there was no occasion to adjudicate the issue of imposition of the penalty under Section 11AC of the Act.
Thus, it becomes clear that the Commissioner (Appeals) has committed an error while holding that mensrea is not required to Order c
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as to refrain himself and persons accompanying him from causing any damage to the documents as also to avoid any interpolation or inference in any manner with such documents and contents thereof. It was also necessary to record as to what steps were taken to safeguard the documents and to avoid possibility of any stranger interference with the seized materials. In other words, when any document is seized, it necessary to enclose the same in a cover and to seal such cover so that no other person gets opportunity to interfere with such document. All these things can of course be recorded briefly, but precisely. This aspect gains more importance once there is objection regarding veracity of the panchanama and the contents of the documents stated to have been seized in the course of such panchanama. A Panchnama should disclose proper description of the premises and the things found in the premises. The information in this regard assumes more importance when there is serious dispute about t
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the premises but also the movement of the officers and the panchas searching the premises and every relevant action of every such person has to be precisely recorded in the Panchnama to avoid any doubt about the seizure proceedings. None of such precautions were taken in the cases in hand.
Though mere irregularity and even illegality in case of search and seizure cannot by itself render the documents seized in the case of such search or seizure to be inadmissible in evidence but the fact of the present case is that the Panchnama merely records that the officers on search found certain records which does not give the description of so called record except saying that the same are described in the annexure to SCN. All this information was absolutely necessary to give credibility to the Panchnama particularly when the entire proceedings in that record are sought to be challenged and disputed and also particularly when the permission to cross examine the witnesses of Panchnama was sought
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29) ELT 399. This Tribunal also in the case of Shri Ganesh Alloys Vs. Chandigarh 2016 (337) ELT 595 wherein it was held that since the excess of stock was found merely on eye estimation and no physical stock taking or done the allegation of excess stock found and that the same has not been recorded in the statutory record were held not sustainable.
8. Finally, qua the alleged admission of the Director of appellant, I am of the opinion that allegations of clandestine removal are serious in nature and the clandestine activities are quasi criminal hence the revenue alleging the same is required to prove it by sufficient corroborative evidences. The Principle Bench, CESTAT in the case of Raj Ratan Industries Vs. CCE Kanpur 2013 (298) ELT 111 has held that the shortage detected at the time of visit of officers cannot admittedly lead to the findings of clandestine removal in absence of the evidences. It was also clarified that even if at the time of visit of officers, the appellant accepts
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t to his notice, the deficiency thereof has already been made good. He has also reflected his cooperation to the fact that he is still ready to make further payment if any is required. Such acknowledgement to my opinion cannot be fastened with the grave allegations of intentional malafide removal of the finished goods to cause loss to the Revenue Exchequer. As already said above that it was for the Department to prove by the cogent corroborative evidence, mere acceptance of excess at the time of visit of the officers by itself cannot be held to be a conclusive proof. Also the mere fact that excess finished goods found in the factory by itself cannot be held to be a ground to attribute any evidence to the asessesse so as to lead to the conclusion of malafide. The law stands settled as of now that the goods cannot be confiscated on the mere conclusion of non entry of the goods in the statutory documents unless there is evidence that such stock was not entered in RG-I Register either deli
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Kerala State Screening Committee on Anti-Profiteering, Director General Anti-Profiteering, Central Board on Indirect Taxes & Customs Versus M/s. Maruti Suzuki India Ltd.
GST
2019 (1) TMI 139 – NATIONAL ANTI-PROFITEERING AUTHORITY – TMI
NATIONAL ANTI-PROFITEERING AUTHORITY – NAPA
Dated:- 2-1-2019
Case No. 01/2019
GST
SH. B. N. SHARMA, CHAIRMAN, SH. J. C. CHAUHAN, TECHNICAL MEMBER, MS. R. BHAGYADEVI, TECHNICAL MEMBER, SH. AMAND SHAH, TECHNICAL MEMBER
Present:-
Smt. A. Shainamol, Additional Commissioner, SGST, Kerala for the Applicant No. 1.
Sh. Anwar Ali T. P., Additional Commissioner for the Applicant No. 2.
ORDER
1. The present Report dated 28.09.2018, has been received from the Applicant No, 2 i.e. The Directorate General of Anti-Profiteering (DGAP) after detailed investigation under Rule 129 (6) of the Central Goods & Service Tax (CGST) Rules, 2017. The brief facts of the case are that the Kerala State Screening Committee on Anti-Profiteering, vide the minu
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ittee on Anti-Profiteering and was further referred to the DGAP vide minutes of it's meeting dated 02.07.2018 for detailed investigations under Rule 129 (1) of the CGST Rules, 2017.
The DGAP has stated in his Report dated 28.09.2018 that the two invoices issued for each of the four products by the Respondent were scrutinized and it was observed that in the pre-GST era, the products namely, 'Wagon R VXI AMT', 'Swift VXI, 'Alto 800 LXI' & Wagon R VXI' (HSN code 8703) attracted total 15.63% duty incidence which included Central Excise Duty @ 12.50%, CST @ 1%, National Calamity Contingent Duty (NCCD) @ 1%, Auto Cess @ 0.125% and Infra Cess @ 1%. On implementation of GST, w.e.f. 01.07.2017, the GST rate on the above models was fixed at 29% which included Central GST @ 14%, State GST @ 14% and Compensation Cess @ 1%. The pre-GST & post-GST sale invoice-wise details with the applicable tax rate and discounted price (excluding VAT or GST) of the said products supplied by the Respondent are fu
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H=E-0.12 5%
408
–
499
–
377
–
243
–
Infra Cess @1%
I=E*1%
3,263
–
3,993.77
–
3,019
–
1,942
–
CST @1%
J=1% of (E to I
3,740
–
4,577.86
–
3,461
–
2,226
–
GST @ 29%
K=E* 29%
–
94,807
–
116,038
–
86,691
–
56,138
Total Duty/Tax
L=Sum of (F to J) or K
51,457
94,807
62,987
116,038
47,618
86,691
30,632
56,138
Ex-Factory Price
M=D+L
379,480
423,020
465,364
518,625
351,299
386,919
227,360
251,779
Tool kit & Jack including tax
N
463
458
550
545
458
458
438
438
Freight including Service tax
O
25,201
24,116
27,144
25,975
25,201
24,116
23,432
21,942
Service Charge including Service Tax
P
784
682
839
730
743
642
80
503
GST @ 29% on Freight and Service Charge
Q=2 9% of O+P
–
7,191
–
7,745
–
7,180
–
7,180
Dealer Landed price
R=M to Q
405,928
455,467
493,897
553,620
377,701
419,314
251 ,309
281,170
3. The DGAP has further stated that the aforementioned supporting invoices show that there w
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Table-B that the Respondent had changed the net base price (after discount) and charged effective rate of tax post implementation of GST and details of such change are furnished in the Table-'C' given below:-
Table-C
Motor Car model
Pre-GST net base price (in Rs.)
Post-GST net base price (in Rs.)
Increase/(Decrease) post-GST (in Rs.)
Increase/ (Decrease) post-GST (in%)
A
B
C
D=(C-B)
E=D/B
Wagon R AMT
3,28,023
3,28,213
190
0.06%
Swift VXI (O)
4,02,377
4,02,587
210
0.05%
Wagon R VXI
3,03,681
3,00,228
(3,453)
(1.14%)
Alto 800 LXI
1,96,728
1,95,641
(1,087)
(0.56%)
5. The DGAP further observed that the Respondent had reduced the base price by Rs. 3453/- in respect of Wagon R VXI and by Rs. 1087/- in respect of Alto 800 However, there was an increase in the net base price in the cases of models Wagon R AMT & Swift VXI (O) which was very negligible and it was also observed from Table-'B' given above that even this negligible increase was on account of reductio
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IGST Export Refunds–resolution of errors
01/2019 Dated:- 2-1-2019 Circular
Customs
Circular No. 01/2019-Customs
F. No: 450/119/2017-Cus-IV
Government of India
Ministry of Finance
Dept. of Revenue
(Central Board of Indirect Taxes and Customs)
*****
Room No. 227B, North Block, New Delhi
Dated, 2nd January, 2019
To,
All Principal Chief Commissioners/Chief Commissioners of Customs/Customs (Preventive)
All Principal Chief Commissioners/Chief Commissioners of Customs & Central Excise
All Principal Commissioners/Commissioners of Customs/Customs (Preventive)
All Principal Commissioners/Commissioners of Customs & Central Excise
Subject: IGST Export Refunds-resolution of errors- reg.
Madam/Sir,
The processing of IGST refund claims on exports is fully automated. Majority of refunds claims are getting processed and sanctioned within five days of filing of GSTR-1 and GSTR-3B returns. However, in a few cases, particularly for the LCL cargo consignments originating from ICD
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42/2017-Cus., dated 7.11.2017 it was explained that due to manual filing of EGM in respect of Shipping bills originating from ICDs, system is unable to match the gateway EGM and the local EGM. Therefore, it was instructed that all the custodians / carriers / shipping lines operating at ICDs/ Gateway ports should file EGM online. It is re-iterated that the first step would be that the concerned stakeholders at the originating ICDs file the local EGMs online.
(ii) Where the export goods are directly moved by truck to the gateway port, in such cases, filing the local EGM timely should not pose any problem. At inland ICDs/CFSs connected by train, the local EGM shall be filed before the goods actually move out of ICD/CFS. In ICDs/CFSs not connected by train but where the movement of export goods begins from the nearest train-based ICD/CFS, it has been observed that local EGM is not being filed as the Train Number is not known to the custodian for the want of Rail receipt. In such cases, it
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2019. However, continued non-compliance beyond 1st February, 2019 may be dealt strictly by taking recourse to penal provisions in accordance with the law.
3. Mismatch in Local EGM and Gateway EGM:
(i) The errors arising out of mismatch of information provided in local and Gateway EGM has been discussed in para 6 of Circular No. 06/2018-Customs where in Board had clearly delineated the roles and responsibilities of the Customs officers at the inland ICDs/ CFSs and at the Gateway port or CFSs attached with the gateway ports respectively in so far as the task of integrating the local EGM and the gateway EGM was concerned.
(ii) One of the major hindrances in smooth processing of IGST refunds for the past period is the problem faced by field formations in gathering information with regard to LCL cargo from Shipping lines and Custodians. The matter has been examined. The procedure related to consolidation of cargo at Gateway ports has already been prescribed vide Circular No. 55/2000-Cus
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l and gateway EGM.
(iii) It has also been learnt that in some field formations tally sheet is being maintained in the form of Container Load Plan (CLP) which is prepared by Shipping lines and gives details of packages stuffed in the container. It has been reported that cargo is de-stuffed under customs supervision based on Container De-stuffing Plan (CDP). Preparing CLP/CDP does not absolve the custodian of the responsibility of keeping account of the cargo being handled in the form of a tally sheet. Such local practice of CLP/CDP appears to have been started only for the convenience of shipping lines/custodian. The accounting of previous containers vis-a-vis new container in case of LCL cargo being re-stuffed at CFS or Gateway port is an important event in establishing the linkage between the local EGM and Gateway EGM. Circular 55/2000-Cus dated 30.06.2000 mandating the procedure to be followed at Gateway Ports or CFS attached to Gateway ports and the originating inland ICDs/CFSs for
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thered from the agents shall be collated and immediately communicated to Gateway port officers so that rectification of errors (C or N) could be done.
(v) Customs officers in charge of CFSs shall provide list of Shipping Bills having SB006 error i.e EGM errors to the concerned CFSs at gateway ports. The custodians shall in turn provide details as mentioned in Tally Sheets or CDP/CLP (containing container details) relating to the said SBs to the Customs officers. Simultaneously, Gateway port officers shall coordinate with the officers of the originating ICDs/ CFSs to obtain relevant particulars in accordance with the procedure in para (iv) above. It shall be the responsibility of the officers in charge of CFSs at Gateway ports to obtain necessary details from the stakeholders which establish the linkages between the goods received from inland ICDs/ CFSs and those exported out of India except in cases where the local EGM has not been filed in which case the responsibility would be of th
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the Customs Cargo Service Provider (CCSP). Further, the procedure for suspension or revocation and imposition of penalty is provided in Regulation 12 which can be resorted to in cases where CCSP fails to comply with the regulations. This must be strictly enforced after following due process in instances of persistent non-compliance.
(viii) Export of goods out of India is an essential condition for grant of IGST refund as provided in Rule 96 of CGST Rules, 2017. It therefore warrants verification whether the goods were indeed exported out of India where the IGST refund claims have been long pending with EGM error (SB006).
4. Stuffing Report by Preventive Officers at Gateway Ports
(i) It appears that in some gateway ports, the Preventive officers are entering stuffing report in ICES application of Customs EDI System pertaining to the shipping bills filed only in gateway port, but not for the shipping bills which have been filed in ICDs. It is important that Preventive officers posted
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if required, in the container/package details shall be rectified at this stage itself to avoid the occurrence of N and C errors, when the gateway EGM is eventually filed. Once the corrections are made, the EGM officer at the Gateway port can revalidate EGMs for successful integration of the updated details.
5. Board had vide Circular No. 67/2000-Customs extended the procedure prescribed in 55/2000-Customs to agents of shipping lines / MTOs / NVOCCS / freight forwarders/consolidators. This was purely a facilitation measure taking into account the business practice of the shipping lines. Board has allowed these entities a role in the logistics chain only to facilitate the trade. Since these entities have the necessary information, it should not be difficult for them to provide the particulars required to resolve the pending SB006 cases. Therefore, there is a responsibility on these entities to coordinate with the field formations in return. Board would be constrained to review the faci
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Central Goods and Services Tax (Amendment) Act, 2018- Clarification regarding section 140(1) of the CGST Act, 2017
87/06/2019 Dated:- 2-1-2019 CGST – Circulars / Ordes
GST
Circular No. 87/06/2019-GST
F. No. 267/80/2018-CX.8
Government of India
Ministry of Finance
Department of Revenue
Central Board of Indirect Taxes and Customs
New Delhi, the 2nd Jan, 2019
To
The Principal Chief Commissioners/ Chief Commissioners/ Principal Commissioners/ Commissioner of Central Tax (All)
The Principal Director Generals/ Director Generals (All)
Madam/ Sir,
Sub: Central Goods and Services Tax (Amendment) Act, 2018- Clarification regarding section 140(1) of the CGST Act, 2017-reg.
Attention is invited to sub-section (a) of section 28 of t
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ice tax paid under section 66B of the Finance Act, 1994 was available as transitional credit under section 140(1) of the CGST Act and that legal position has not changed due to amendment of section 140(1) on account of following reasons:
i) The amendment in provisions of section 140(1) and the explanations to section 140 need to be read harmoniously such that neither any provision of the amendment becomes otiose nor does the legislative intent of the amendment get defeated.
ii) The intention behind the amendment of section 140(1) to include the expression "eligible duties” has been indicated in the “Rationale/ Remarks” column (at Sl. No. 37) of the draft proposals for amending the GST law which was uploaded in the public domain for c
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duties and taxes” has not been used elsewhere in the Act.
3.3 The expression “eligible duties” under section 140(1) does not in any way refer to the condition regarding goods in stock as referred to in Explanation 1 to section 140 or to the condition regarding inputs and input services in transit, as referred to in Explanation 2 to section 140.
4. Further, it has been decided not to notify the clause (i) of sub-section (b) of section 28 and clause (i) of sub-section (c) of section 28 of CGST (Amendment) Act, 2018 which link Explanation 1 and Explanation 2 of section 140 to section 140(1). This would ensure that the credit allowed to be transitioned under section 140(1) is not linked to credit of goods in stock, as provided under Explanat
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GST over direct selling distributors
Query (Issue) Started By: – nalin shah Dated:- 1-1-2019 Last Reply Date:- 4-1-2019 Goods and Services Tax – GST
Got 4 Replies
GST
Sir,
Kindly clarify registration liability under GST for direct selling distributors.
The exemption limit of 20/10 lakhs applicable not?
HSN code for the service provided.
For your information, s/he do not sell any goods of the company but get facilitation fees on sells made by persons introduced by him to multilayer marketing companies like Modicare, Amway, Tupperware etc.
Thanks in advance.
Reply By KASTURI SETHI:
The Reply:
Dear Querist,
Query-wise reply is as under:-
1. Yes. Threshold exemption available.
2. 998599 (Other business support services no
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Refund of ITC on purchase of goods other than exporters
Query (Issue) Started By: – Jasbir Uppal Dated:- 1-1-2019 Last Reply Date:- 14-1-2019 Goods and Services Tax – GST
Got 3 Replies
GST
Dear professionals,
"Wishing you all a very Happy and prosperous new Year"
I am a manufacturer and the finished goods are coming under the rate of tax @5% but the goods manufactured are charged at the rate lower than the tax paid on the input of goods and services. Now my question is how to claim the refund of the excess ITC showing in the electronic credit ledger..
Please give your valuable views.
Thanks & Regards
J.S.Uppal
Tax Consultant
Reply By Gorantla Bhaskar Rao:
The Reply:
Dear querist
You can claim such amount un
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New Year 2019: Key Updates and Resolutions for Goods and Services Tax Compliance and Regulation.
Articles
GST
New Year 2019! GST Resolution – Goods and Services Tax – GST
TMI Updates – Hi
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New Year 2019! GST Resolution
By: – Ganeshan Kalyani
Goods and Services Tax – GST
Dated:- 1-1-2019
Wishing you all a very Happy and a Prosperous New Year 2019!
May God bless you all with Health, Wealth and Success.
Following are the resolutions I would like to do for the year 2019.
* I will ensure that outward supplies as shown in GSTR-1 is equal to the outward supplies shown in GSTR-3B.
* I would reconcile outward supplies as shown in GSTR-1 / GSTR-3B with the books of accounts.
* I will ensure that only eligible Input Tax Credit (ITC) is claimed as credit in GSTR-3B. Any ineligible ITC would be reversed with the payment of applicable interest.
* I will reconcile ITC as per books with GSTR-2A auto-populated data.
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