Goods and Services Tax

Kerala State Screening Committee on Anti-profiteering, Director General Anti-Profiteering, Central Board of Indirect Taxes & Customs, Versus M/s. Asian Paints Ltd.,
GST
2019 (1) TMI 21 – NATIONAL ANTI-PROFITEERING AUTHORITY – 2019 (20) G. S. T. L. 391 (N. A. P. A.)
NATIONAL ANTI-PROFITEERING AUTHORITY – NAPA
Dated:- 27-12-2018
Case No. 29/2018
GST
Sh. B. N. Sharma, Chairman, Sh. J. C. Chauhan, Technical Member, Ms. R. Bhagyadevi, Technical Member
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 Director 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 minutes of it's me

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y @ 12.50% on 70% of the MRP, in terms of Notification No. 49/2008-CE (N.T.), dated 24.12.2008. On implementation of the GST w.e.f. 01.07.2017, the pre-GST rate and the post-GST sale invoice-wise details of the applicable rate of tax and the base price (excluding Central Excise Duty, VAT or GST) of the said product supplied by the Respondent are furnished in the table below:-
Table
Period
Pre-GST
Post-GST
1.
Product Description 
A
Paint (AP Apex Classic WT 10 LT (HSN Code 3209)
2.
Invoice No. 
B
13006429
KR1701110400
3.
Invoice Date
C
20.06.2017
09.11.2017
4.
MRP as per Annexure-7 (Rs.) 
D
2.610
2,660
5.
Price before discount per unit (Rs.) 
E
2,159
1,927
6.
Discount per unit (Rs.) 
F
75.57
67.45
7.
Price after discount per unit (Rs.)
G=E-F
2,083.43
1,859.55
8.
Central Excise Duty @12.5% on 70% of MRP (Rs.)  
H=(D*70%)*12.5%
228.38
–
9.
Base Price (Excluding duties & taxes) (Rs.)
I=G-H
1,855.05
1,859.55

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discount and such an increase couldn't qualify as profiteering due to reduction in the tax rate, thus, the provisions of Section 171 (1) of the CGST Act, 2017 relating to profiteering were not contravened in the instant case.
5. The above Report was considered by the Authority in it's meeting held on 03.10.2018 and it was decided that as there was no private applicant, the Kerala Screening Committee may be asked to appear before the Authority on 31.10.2018. Smt. A. Shainamol, Additional Commissioner, SGST, Kerala appeared on behalf of the Applicant No. 1. During the hearing she agreed with the report submitted by the DGAP.
6. We have carefully considered the DGAP's Report and the documents placed on record to examine whether there was any reduction in the GST rate and whether the benefit of reduction in the rate of tax was passed on or not to the recipient as provided under Section 171 of the CGST Act, 2017.
7. From the invoices referred above, it is evident that the Res

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State Level Screening Committee on Anti-Profiteering, Kerala, Director General Anti-Profiteering, Central Board of Indirect Taxes & Customs, Versus M/s. Ahuja Radios
GST
2018 (12) TMI 1602 – NATIONAL ANTI-PROFITEERING AUTHORITY – 2019 (20) G. S. T. L. 396 (N. A. P. A.)
NATIONAL ANTI-PROFITEERING AUTHORITY – NAPA
Dated:- 27-12-2018
Case No. 28/2018
GST
SH. B.N. SHARMA, CHAIRMAN, SH. J. C. CHAUHAN, TECHNICAL MEMBER, MS. R. BHAGYADEVI, TECHNICAL MEMBER
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 Director 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 minutes of it's

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, 2017.
3. The DGAP has stated in his report dated 28.09.2018 that the applicable rate of tax was reduced to 18% from the existing rate of 28% w.e.f. 15.11.2017, vide Notification No. 41/2017-Central Tax (Rate) dated 14.11.2017. Details of the invoices issued by the Respondent are as per the table given below:-
S.No.
Product
Pre-rate of GST revision (Before 15.11.2017)
Post rate of GST revision (After 15.11.2017)
 
 
Invoice No. & date
Tax Rate
Base price per unit Excluding GST (Rs.)
Invoice No. & date
Tax Rate
Base price per unit Excluding GST (Rs.)
1.
PA Ceiling Speaker BS 6083T
SKN/17-18/1469 dated 30.10.2017
28%
625/-
SKN/17-18/1761 dated 04.12.2017
18%
625/-
2.
PA Wall Speaker 661T
SKN/17-18/1469 dated 30.10.2017
28%
545/-
SKN/17-18/1761 dated 04.12.2017 
18%
545/-
4. The DGAP after scrutiny of the above two invoices issued by the Respondent has intimated that there was no increase in the per unit price (excluding GST) in respect of bot

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ues are required to be settled in the present proceedings:-
I. Whether there was reduction in the rate of tax on the above products in question w.e.f. 15.11.2017?
II. Whether any benefit of reduction in the rate of tax was to be passed on?
7. Perusal of Section 171 of the CGST Act 2017, shows that it reads as under:-
(i) “Any reduction in rate of tax on any supply of goods or services or ' the benefit of input tax credit shall be passed on to the recipient by way of commensurate reduction in prices.”
8. It is apparent from the perusal of the facts of the case that while there was reduction in the rate of tax on the above products from 28% to 18% w.e.f. 15.11.2017, vide Notification no. 41/2017-central Tax (Rate) dated 14.1 1.2017, but the base prices (excluding tax) of both the above products had remained the same and hence the allegation of profiteering is not established.
9. Based on the above facts it is clear that the Respondent has not contravened the provisions of Secti

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Kerala State Level Screening Committee on Anti-Profiteering, Director General Anti-Profiteering, Central Board of Indirect Taxes & Customs, Versus M/s. Lorenzo Vitrified Tiles Pvt. Ltd.
GST
2018 (12) TMI 1601 – NATIONAL ANTI-PROFITEERING AUTHORITY – 2019 (20) G. S. T. L. 386 (N. A. P. A.)
NATIONAL ANTI-PROFITEERING AUTHORITY – NAPA
Dated:- 27-12-2018
Case No. 27/2018
GST
SH. B.N. SHARMA, CHAIRMAN, SH. J. C. CHAUHAN, TECHNICAL MEMBER, MS. R. BHAGYADEVI, 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.
ORDER
1. The present report dated 28.09.2018, has been received from 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 minutes of it'

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rt dated 28.09.2018 has stated that after scrutiny of the two invoices issued by the Respondent, it was observed that in the pre-GST era, the applicable tax on the product “Mirror Series Tiles” was CST @ 2% and Central Excise Duty @ 12.5% on 55% of the MRP. On implementation of the GST w.e.f. 01.07.2017, the GST rate on the said product was fixed at 28% which was reduced to 18% w.e.f 15.11.2017. The DGAP has further observed that no sale invoice issued by the Respondent after the reduction of GST rate from 28% to 18% w.e.f. 15.11.2017, has been examined by the Kerala State Screening Committee. The invoice dated 18.04.2017, relied on by the Kerala State Screening Committee, was actually issued in the pre-GST era. Further, it was also intimated by The DGAP that in the absence of any invoice issued post 15.11.2017 when the GST rate on the said product was reduced from 28% to 18%, it was not possible to compare the pre-rate revision and post-rate revision actual selling prices. Therefore,

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96
 
GST  
I
–
28%
Total Tax (in Rs.)  
J=D+H or I
44.77
86.8
Total Tax in terms of percentage of Base Price
L=(J/E)*100
14.44%
28%
4. Conclusively, The DGAP has submitted that as there was no reduction in the tax rate of the said product which was increased from 14.44% to 28% as could be seen from the above table and also the Respondent did not increase the per unit price of the product excluding tax, the provisions of Section 171 of the CGST Act, 2017 were not contravened and the allegation of profiteering made by the Respondent was not established. The DGAP has also stated that though the tax rate was reduced from 28% to 18% w.e.f. 15.11.2017, no supporting documents were provided to prove that the reduction in rate of tax was not passed on to the recipient.
5. The above report was considered by the Authority in its meeting held on 03.10.2018 and it was decided that as there was no private applicant, the Kerala Screening Committee should be as

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price (excluding tax) of the above product and therefore the allegation of profiteering is not established.
8. Though the rate of tax has been reduced from 28% to 18% w.e.f. 14.11.2017 the Kerala Screening Committee has failed to produce any invoice and has not examined any documents to establish that the benefit of tax reduction has not been passed on by the Respondent to the recipient hence DGAP has rightly observed that no supporting documents or invoices of the product 'Mirror Series Tiles' for the period post 15.11.2017 have been either examined or presented before the Standing Committee. Hence the allegation that the benefit of rate reduction has not been passed on is not sustained.
9. Based on the above facts it is clear that the Respondent has not contravened the provisions of Section 171 of the CGST Act, 2017 either on implementation of the GST w.e.f. 01.07.2017 or w.e.f. 14.11.2017 after the introduction of GST rate reduction and hence there is no merit in the application f

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Kerala State Level Screening Committee on Anti-Profiteering., Director General Anti-Profiteering, Central Board of Indirect Taxes & Customs, Versus M/s. Janson
GST
2018 (12) TMI 1600 – NATIONAL ANTI-PROFITEERING AUTHORITY – 2019 (20) G. S. T. L. 398 (N. A. P. A.)
NATIONAL ANTI-PROFITEERING AUTHORITY – NAPA
Dated:- 27-12-2018
Case No. 26/2018
GST
SH. B. N. SHARMA, CHAIRMAN, SH. J. C. CHAUHAN, TECHNICAL MEMBER, MS. R. BHAGYADEVI, TECHNICAL MEMBER
Present:-
Ms. 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 Director 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 minutes of it&#

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pre-GST era, the applicable Value Added Tax (VAT) was nil and the Central Excise Duty on the product was exempted vide Notification No.30/2004-CE dated 09.07.2004. In the post GST era the rate of tax was levied @ 5%. The details of the invoices issued by Respondent are as per the table given below:-
Sr.No.
Description of the product supplied
Pre-GST (Invoice no. 160 dated 07.04.2017)
Post-GST (Invoice No. JI/11842 dated 18.08.2017)
 
 
Base Price after Discount (Rs.)
Tax Rate
Tax Amount (Rs.)
Total Selling price (Rs.)
Base Price after Discount (Rs.)
GST Rate
GST Amount (Rs.)
Total Selling Price (Rs.)
1.
King Supreme [F] 2.50 MTR LUNGI
210
NIL
NIL
210.00
200.70
5%
10.04
210.74
2.
Charm Dix [F] 2.00 Mtr Lungi
127
NIL
NIL
127.00
119.70
5%
5.99
125.69
3.
Excellent Delux [F] 2.00 MTR W.O.B. Lungi
183
NIL
NIL
183.00
170.10
5%
8.51
178.61
4.
Economy [F] 2.00 MTR Lungies
133
NIL
NIL
133.00
125.10
5%
6.26
131.36
5.
Mourya [F] 2.

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st-GST era. Conclusively, the DGAP has submitted that as there was no reduction in the tax rate of the said product, the provisions of Section 171 of the CGST Act, 2017 were not contravened and the allegation of profiteering by the Respondent was not established.
5. The above report was considered by the Authority in its meeting held on 03.10.2018 and it was decided that as there was no private applicant, the Kerala Screening Committee may be asked to appear before the Authority. On 31.10.2018 Smt. A.Shainamol, Additional Commissioner, SGST, Kerala appeared on behalf of the Applicant No. 1 and during the hearing she agreed to the report submitted by the DGAP.
6. We have carefully examined the DGAP's report and the documents on record and find that the following issues are required to be settled in the present proceedings:-
l. Whether there was reduction in the rate of tax on the product in question w.e.f. 01.07.2017?
ll. Whether any benefit of reduction in the rate of tax was t

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Guidelines for processing of applications for financial assistance under the Central Sector Scheme named ‘Seva Bhoj Yojna’ of the Ministry of Culture – Reg.
75/49/2018 Dated:- 27-12-2018 CGST – Circulars / Ordes
GST
Circular No. 75/49/2018-GST
F. No. CBEC-20/16/05/2018 – GST
Government of India
Ministry of Finance
Department of Revenue
Central Board of Indirect Taxes and Customs
GST Policy Wing
****
New Delhi, Dated the 27th December, 2018
To,
The Principal Chief Commissioners / The Principal Directors General / Chief Commissioners / Directors General (All) / Principal Commissioners / Commissioners of Central Tax (All) / The Principal Chief Controller of Accounts, CBIC
Madam/Sir,
Subject: Guidelines for processing of applications for financial assistance under the Central Sector Scheme named 'Seva Bhoj Yojna' of the Ministry of Culture – Reg.
I. Background
1.1 The Ministry of Culture has introduced a Central Sector Scheme called the 'Seva Bhoj Yojna' (h

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fficer of each State or Union territory. The officers who have been designated as nodal officers for the purpose of facilitating the processing of refund applications for UIN entities as per Circular No. 36/10/2018-GST, dated 13th March, 2018 issued vide F. No. 349/48/2017-GST shall act as nodal officers for the purposes of this Scheme as well. The details of the nodal officers is enclosed as Annexure B to this Circular. The Directorate General of Goods and Services Tax (DGGST), 5thFloor, MTNL (Telephone Exchange) Building, 8, Bhikaji Kama Place, New Delhi-110066 shall be the central nodal agency for reporting and monitoring the reimbursement of the said taxes by the nodal officers under the Scheme.
II. Application for obtaining Seva Bhoj Yojana – Unique Identity Number (SBY-UIN)
2.1 The institutions opting to avail of the Scheme must first register with the Darpan Portal of NITI Aayog to obtain a Unique ID from the portal and thereafter, apply on the CSMS Portal on the Ministry of

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a State/Union territory from where the specified activity is undertaken by them in FORM SBY-01. Since the reimbursement of the said taxes by the nodal officers shall be done State-wise or Union territory-wise, the claimant would be required to apply for a separate SBY-UIN for each State or Union territory in which they undertake the specified activity.
2.4 Upon receipt of the application in FORM SBY-01 and the information of allocation of a Unique Enrolment Number by the Ministry of Culture, a unique ten digit SBYUIN, in the format of XX/YYYYY/ZZZ (where XX stands for the two digit State Code, YYYYY stands for the five digit Unique Enrolment Number allotted by the Ministry of Culture and ZZZ stands for the three digit running number assigned by the jurisdictional nodal officer) shall be communicated to the applicant in FORM SBY02 within seven days from the receipt of the complete application in FORM SBY-01 by the nodal officer.
III. Application for claiming reimbursement of the said

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takes the specified activity. In case the claimant undertakes the specified activity from different locations situated in more than one State or Union territory, separate applications would be required to be filed with respect to each SBY-UIN obtained in terms of para 2.3 above, to the jurisdictional nodal officers.
3.4 The application shall be signed by the authorised signatory of the claimant and shall be submitted along with the following documents:
a) Self-attested copies of the invoices issued by the suppliers for the purchases of the specified items mentioning the unique enrolment number allotted by the Ministry of Culture and SBY-UIN;
b) A Chartered Accountant‟s Certificate certifying the following:
(i) quantity, price and amount of central tax, State tax/Union territory tax or integrated tax paid on the purchase of the specified items during the quarter for which the claim is filed;
(ii) the claimant is involved in charitable/religious activities;
(iii) the r

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cies within a period of 15 days from the date of receipt of the said communication.
IV. Processing of the application filed in FORM SBY-03
4.1 While processing the application filed in FORM SBY-03, the nodal officer shall verify the following:
a) Invoices mentioning the unique enrolment number allotted by the Ministry of Culture and the SBY-UIN for the purchase of the specified items have been submitted;
b) The amount claimed as reimbursement is on account of the said taxes paid on the purchase of the specified items during the claim period;
c) The amount claimed does not exceed the limit specified in para 3.4(b)(iii) above.
4.2 The nodal officer may call for any document in case he has reason to believe that the information provided in the claim is incorrect or insufficient and further enquiry is required to be carried out before the sanction of the claim.
4.3 Where, upon examination of the application, the nodal officer is satisfied that the claimant is eligible for the re

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o the concerned PAO under his digital signature. If a sanction order is uploaded exceeding the available budget, the PAO will prepare the Bill but not be able to pass the bill due to lack of funds, and the said sanction will remain as pending. The detailed procedure to be followed by all the stakeholders for disbursal of financial assistance under the Scheme as prepared by the O/o the Pr. Chief Controller of Accounts, CBIC is enclosed as Annexure C.
4.4 Where the nodal officer is satisfied, for reasons to be recorded in writing, that the whole or any part of the amount claimed is not payable to the claimant, he shall issue a notice detailing the reasons thereof and requiring the claimant to furnish a reply within a period of fifteen days from the date of the receipt of such notice.
4.5 After receiving the reply, the nodal officer shall process the application and issue an order in FORM SBY-05 either sanctioning or rejecting the amount of reimbursement claimed.
4.6 No amount shall

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nth
Upto the month
1
2
3
4
5.2 The details of all the applications for reimbursement of the said taxes received in FORM SBY-03 and its processing shall be recorded in the format given in Table C below along with its monthly summary in the format given in Table D below:
Table C – Details of claimsfor financial assistance under SevaBhojYojnareceived and processed
(Rs. in Lakhs)
Sl. No
.
Claimant‟s name
SB YUIN
Date of receipt of application in FORM SBY-03
Date of issue of acknowledgment in FORM SBY-04
Date of issue of deficiency memo, if any
Period to which the claim pertains
Amount claimed
Date of issue of order in FOR M SBY-05
Amount
sanctioned
Amount rejected
Date of issue of Payment advice in FORM SBY- 06
1
2
3
4
5
6
7
8
9
10
12
13
Table D-Monthly summary of Financial Assistance under Seva Bhoj Yojna
(For the month of ____)
(Rs. in Lakhs)
Opening balance
Details of claims received
Details of claims sanctioned
Details of claims rejec

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rsion would follow.
(Upender Gupta)
Commissioner (GST)
FORM SBY-01
Application for SBY-UIN
1.
Name of the charitable/religious institution
2.
Type of entity (as per para 6 (i) of the Guidelines on the Scheme for Financial Assistance under 'Seva Bhoj Yojna' issued by the Ministry of Culture, vide F.No. 13-1/2018-US (S&F) dated 01.08.2018)
3.
Permanent Account Number (PAN)
4.
GSTIN (if applicable)
5.
Address
6.
Details of locations within a State/Union territory where activity of distribution of free food to public is undertaken
7.
Unique Enrollment Number allotted by the Ministry of Culture
8.
Date of issue of unique enrollment number by the Ministry of Culture
9.
Name of the authorized person
10.
Email Address of the authorized person
11.
Mobile Number of the authorized person
12.
Bank Account Details (add more if required)
Verification:
I hereby solemnly affirm and declare that the information given hereinabove is true and correct to the best of

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le/religious institution
2.
Permanent Account Number (PAN)
3.
GSTIN (if applicable)
4.
Address
5.
Unique Enrollment Number allotted by the Ministry of Culture
6.
SBY-UIN
7.
Claim period (relevant quarter)
From < Year > < Month > to < Year >< Month >
8.
Amount Claimed (Rs.)
Central Tax
Integrated Tax (50% of the Integrated Tax paid)
Total
9. Details of invoices:
GSTIN of the supplier
Invoice No.
Date
Taxable Value
Central Tax claimed as reimbursement
Integrated Tax claimed as reimbursement (50% of the Integrated Tax paid)
Total tax claimed as reimbursement
(5+ 6)
1
2
3
4
5
6
7
10. Details of Bank Account:
Sl. No.
Details
1.
Bank Account Number
2.
Bank Account Type
3.
Name of the Bank
4.
Name of the Account Holder/Operator
5.
Address of Bank Branch
6.
IFSC
7.
MICR
11. Verification
I/we _______ as an authorized signatory of << Name of organization >> hereby solemnly affirm and declare that the information given hereinabove is tru

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re, vide F.No. 13-1/2018-US (S&F) dated 01.08.2018.
Signature of Authorised Signatory:
Name:
Designation / Status
Date :
Place :
Enclosures:
1. Self-attested copies of the invoices issued by the suppliers for the purchases of the specified items mentioning the unique enrolment number allotted by Ministry of Culture and SBY-UIN;
2. A Chartered Accountant‟s Certificate certifying the following:
a) Quantity, price and amount of central tax, State tax/Union territory tax or integrated tax paid on the purchase of the specified items during the quarter for which the claim is filed;
b) The institution is involved in charitable/religious activities and the specified raw food items have been used for only distributing free food to the public/devotees during the claim period.
c) the reimbursement claimed in the current quarter/year is not more than the purchases in the previous corresponding quarter/year plus a maximum of 2.5%/10% for the current quarter/year, as the case ma

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ion)
____________ (Address)
Acknowledgement No.Dated………< DD/MM/YYYY >
Order for reimbursement/rejection under the Seva Bhoj Yojna Scheme
Sir/Madam,
This has reference to your application for reimbursement of tax under the Seva Bhoj Yojna Scheme.
Upon examination of your application, the amount of reimbursement sanctioned to youis as follows:
Sl. No.
Description
Central Tax
Integrated Tax (50% of the Integrated Tax paid)
Total
1.
Amount claimed
2.
Amount sanctioned
3.
Amount rejected
4.
Reason(s) for rejection, if any
5.
Net amount to be paid to the claimant
I hereby sanction an amount of Rs. _________ to M/s___________having SBY-UIN as the amount of central tax and centre‟s share of integrated tax to be reimbursed under the Seva Bhoj Yojna Scheme, out of a total amount of Rs. _______ claimed vide application no. __________ received in this office on ______________, for the claim period ________________. The amount payable will b

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Amount sanctioned
Details of the Bank
i.
Bank Account no as per application
ii.
Name of the Bank
iii
Name and Address of the Bank /branch
iv
IFSC
v.
MICR
The amount payable will be debitable to the Functional head ************ under Grant No…….of Ministry of Culture for the Financial Year:……….under which the budget has been authorized by the Ministry of Culture to the Central Board of Indirect Taxes and Customs, Department of Revenue, Ministry of Finance.
Date:
Place:
Signature:
Name:
Designation:
Office Address:
To
___________ (SBY-UIN)
___________ (Name)
____________ (Address)
F. No. 13-1/2018-US (S&F)
Government of India
Ministry of Culture
P. Arts Bureau
****
Puratatva Bhawan,
GPO Complex,
INA, New Delhi.
1st August, 2018
GUIDELINES ON SCHEME FOR FINANCIAL ASSISTANCE UNDER 'SEVA BHOJ YOJNA'
1. TITLE
The scheme shall be known as 'SEVA BHOJ YOJNA'. The Scheme shall be applicable within the territorial

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ee 'langar' / 'bhandara' (community kitchen) offered by charitable/religious institutions like Gurudwara, Temples, Dharmik Ashram, Mosques, Dargah, Church, Math, Monasteries etc. Financial Assistance will be provided on First-cumFirst Serve basis of registration linked to fund available for the purpose in a Financial Year.
5. QUANTUM OF ASSISTANCE:
Financial Assistance in the form of reimbursement shall be provided where the institution has already paid GST on all or any of the raw food items listed below:
i) Ghee
ii) Edible oil
iii) Sugar / Burra / Jaggery
iv) Rice
v) Atta / Maida / Rava /Flour
vi) Pulses
The total amount of CGST and Central Government‟s share of IGST that would be reimbursed on purchases in the Financial Year 2019-20 will be capped at a maximum of 10% of the current financial year i.e. 2018-19.
6. CRITERIA FOR FINANCIAL ASSISTANCE
i) A Public Trust or society or body corporate, or organisation or institution covered under the provisions of s

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es, gurdwaras, wakfs, churches, synagogues, agiaries or other places of public religious worship.
iii) The institutions/organizations should have been in existence for preceding three years before applying for assistance.
iv) Only those institutions would be eligible for financial assistance which have been distributing free food, langar and prasad to public for at-least past three years on the day of application. For this purpose, entities shall furnish a self- certificate.
v) Financial Assistance under the scheme shall be given only to those institutions which are not in receipt of any Financial Assistance from the Central/State Government for the purpose of distributing free food: self- certificate.
vi) The institutions shall serve free food to at least 5000 people in a calendar month.
vii) The Institution/Organization blacklisted under the provisions of Foreign Contribution Regulation Act (FCRA) or under the provisions of any Act/Rules of the Central/State Government sha

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lture‟s website www.indiaculture.nic.in:-
(i) Copy of the valid Registration Certificate as per the provision contained in Para 6 and (ii).
(ii) Copy of Memorandum of Association/Article of Association/Charter of Activities of the organisation.
(iii) Copies of Audited Accounts for the last three years.
(iv) Copies of Annual Report, if any, for last three years.
(v) List of Office bearers/Governing Body of the institution.
(vi) Name of the authorized signatory who will sign all documents with contact details and E-mail ID.
(vii) Self-certificate indicating that the institution is distributing free food for at-least past three years on the day of application and providing free food to at least 5000 people in a month.
(viii) Certificate from District Magistrate indicating that the institution is involved in charitable/religious activities and is distributing free food to public/devotees etc. since last three years atleast on daily/monthly basis.
(ix) PAN/ TAN Number of th

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Institution for distribution of Free Food shall be distinct from accounts maintained for the purpose of Food/Prasad sold to public/devotees.
(ii) The bills produced by the Institution for re-imbursement shall be mandatorily in the name of registered charitable/religious Institution.
(iii) The Institution shall provide total number of people/persons provided free food every calendar month and shall maintain monthly purchase bills in this regard.
9. PROCEDURE FOR CLAIMING REIMBURSEMENT OF CGST
(i) Single Authority: There will be a one (nodal) Central Tax officer in every State / Union territory (UT) for all purposes of the scheme.
(ii) Registration with the Central Tax officer: After enrolling with the Ministry of Culture, the applicant shall submit an application in a specified form along with a copy of the registration certificate issued by the Ministry of Culture to the nodal Central Tax officer in the State/UT. The nodal Central Tax officer on receipt of the application

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and specified items have been used for only distributing free food to public/devotees etc. during the claim period.
c) The reimbursements claimed in the current quarter / year is not more than the previous year‟s purchases in the corresponding quarter / year plus a maximum of 10% for the current year.
d) The charitable/religious institution is using the raw food items as mentioned in Para 5 above only for distributing free food to public/devotees etc. during the claim period.
e) The institution fully satisfies the conditions laid down in para 6 of the guidelines.
10. OUTCOME OF THE SCHEME
A Performance-cum-Achievement Report on the activity undertaken will be submitted in triplicate by the beneficiary institutions, at the beginning of next financial year, to the Ministry as per the following format:
* Location of Free Food Services:
* Cost of the Food items excluding GST:
* GST levied: Total GST paid (CGST,SGST/UTGST,IGST and amount of Financial Assistance releas

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in separate account for the assistance received from the Ministry of Culture and these will be subject to inspection/audit by the officers of the Ministry or any other agency designated by the Ministry.
At the end of the Financial Year 2018-19, the Physical and Financial progress of the Scheme will be measured by the Ministry of Culture
14. PENALTIES IN CASE OF MISUSE OF ASSISTANCE /GRANT
The members of the executive body of the entity /institution would be liable for recovery of misused grants. The organization /institution will also be blacklisted for misuse of funds, fake registration certificate, fake documents etc. All immovable and movable assets created from the Government grants would be taken over by local administration prescribed by the Ministry. The assistance provided by the Ministry of Culture shall be recovered with penal interest, apart from taking criminal action as per law.
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Annexure – B
List of Nodal Officers
S.No.
State/UT
Nod

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Bir Chand Patel Path, Patna-800001
Mr. Suhrit Mukherjee, Assistant Commissioner
0612-2504814, suhrit9933@gmail.com
7
Chandigarh
Chandigarh
Plot No. 19 Sector 17-C, C.R Building Chandigarh
Ms.Mamta Saini, Deputy Commissioner
0172-2704196, mamtasaini.india@gmail.com
8
Chhattisgarh
Raipur
Division-II, CGST Bhawan Civil Lines, Raipur
Mr. Sumit Kumar Agrawal, Assistant Commissioner
0771-2425636 sumitk.agrawal@gov.in
9
Dadra and Nagar Haveli
Daman
2nd Floor, Hani's Landmark, Vapi-Daman Road, Chala , Vapi, Gujarat
Mr. B.P. Singh, Additional Commissioner, Daman
0260-2460502, binay.singh@icegate.gov.in
10
Daman and Diu
Daman
2nd Floor, Hani's Landmark, Vapi-Daman Road, Chala , Vapi, Gujarat
Mr. B.P. Singh, Additional Commissioner, Daman
0260-2460502, binay.singh@icegate.gov.in
11
Goa
Goa
GST Bhavan, EDC Complex, Patto, Panaji403001
Mr. S. K. Sinha, Additional Commissioner
0832-2437190, sanjay1.sinha@icegate.gov.in
12
Gujarat
Gandhinagar
O/o the Commi

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70
sd07.gst@gov.in
18
Kerala
Kochi
Central Revenue Building, I.S. Press Road, Kochi682018
Mr. Ashwin John George, Assistant Commissioner
0484-2533169 ashwinjohngeorge@gmail.com
19
Lakshadweep
Kochi
Central Revenue Building, I.S. Press Road, Kochi682018
Mr. Ashwin John George, Assistant Commissioner
0484-2533169 ashwinjohngeorge@gmail.com
20
Madhya Pradesh
Bhopal
Division – I Bhopal, Jail Road ParyawasBhawan, Bhopal
Mr. Piyush Thorat, Assistant Commissioner
0755-2761620, piyushthorat19@gmail.com
21
Maharashtra
Mumbai Central
4th Floor, GST Bhavan, 115, M.K.Road, Opp Churchgate Station, Mumbai-400020
Ms. Manpreet Arya, Additional Commissioner
022-26210384, manpreetarya@yahoo.co.in
22
Manipur
Imphal
CGST & CX Commissionerate, Imphal795001
Mr. R.K.Shurchandra Singh,Assistant Commissioner
0385-2460735, shurchandra.rk@gov.in
23
Meghalaya
Shillong
CGST & CX Commissionerate, Shillong793001
Mr. Om Prakash Tiwary, Assistant Commissioner
0364-2506758, tiwary.

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N.C.R. Building, Statue Circle, Jaipur
Mrs. Ruchita Vij, Additional Commissioner
0141-2385342 ruchitavij@gmail.com
31
Sikkim
Siliguri
Gangtok CGST Division, Indira Byepass Road, Sichey Near District Court, Gangtok – 737101
Mr. Puran Lama, Assistant Commissioner, Sikkim (Gangtok)
03592-284182,
Gtk_div@rediffmail.com
32
Tamil Nadu
Chennai (North)
GST Bhawan, 26/1, Mahatma Gandhi Road, Nungambakkam, Chennai – 600034
Mr. Subha Chandran, Assistant Commissioner
044-28331177, 044-28331188, commr-cexchn1@nic.in
33
Telangana
Hyderabad
O/o the Principal Commissioner of Central Tax, Hyderabad GST Commissionerate, GST Bhawan, L B Stadium Road, Basheerbagh, Hyderabad – 500004.
Mr. P. Anand Kumar, Additional Commissioner
040-23240725, ak.pulapaka@gov.in
34
Tripura
Agartala
CGST & CX Commissionerate, Agartala799001
Mr. S.K.Mazumdar, Assistant Commissioner
0381-2304099 , sanjoymaz85@gmail.com
35
Uttar Pradesh
Lucknow
7-A, Ashok Marg,Lucknow-226001
Mr. Avijit Pegu, Ass

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ment‟s share of IGST paid on the purchase of specific items by charitable institutions for distributing free food to the public. The Guidelines have been issued in this regard by Ministry of Culture vide F. No. 13-1/2016-US (S&F) dated 1st August 2018.
2. Authorization of Budget by Ministry of Culture:
i) The budget under the Central Scheme of SBY will be authorized by the Ministry of Culture to CBIC in accordance with the LOA Module of PFMS.
ii) The 15 digit accounting codes under the Charter of Accounts will be as follows.
Grant No. : (Will change year to year)
Major Head:
Submajor / Minor Head:
Subhead:
Detailed/Object Head:
(Ministry of Cu}lture will provide)
iii) As per the LOA module of PFMS the budget will be authorized DDO wise Location wise by the Pr. Accounts office of Ministry of Culture to Pr. Accounts office of CBIC, Department of Revenue.
3. PAOs designated for disbursal of payments under the Scheme:
Following five PAOs have been designated fo

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the competent authority of the concerned Commissionerate.
iii) The request for allotment of DDO code shall be forwarded by the O/o Pr. CCA, CBIC to O/o CGA. Once allotted, the same shall be conveyed by the O/o Pr. CCA to the concerned DDO, Nodal offices and Commissionerate.
5. Issuance of sanction by the Nodal Officers
i) The Scheme envisages reimbursement of only Central GST and Central Government‟s share of Integrated Tax (IGST). The applications for reimbursements of such taxes shall be processed by the nodal officer in each State/UT. [The officers who have been designated as nodal officers for the purpose of facilitating the processing of refund claims for UIN entities as Circular No. 36/10/2018-GST dated 13th March 2018 shall act as nodal officers for the purpose of this scheme also.] (As per para 1.2 of Circular no. dated issued by CBIC)
ii) Existing Nodal Officer(s) appointed for UIN entities will process the applications under the SBY Scheme and they shall, in th

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er his login access. He will also upload the scanned copy of the Sanction Order and Payment Advice and forward the same to the designated DDO. The DDO shall also first check the availability of budget and then generate a bill and forward it to the concerned PAO under his digital signatures. No physical document (SBY05/SBY06 etc.) will be sent by the DDO as the same are forwarded with digital signatures of the DDO.
ii) The designated PAO shall pass/reject the bill for payment as per the existing payment protocols being followed for payments through PFMS portal after exercising due diligence. The PAO shall take a print out of the Sanction Order (SBY05) and Payment Advice (SBY06) so uploaded on PFMS by the Nodal Officer (Sanctioning Authority) for audit trail.
iii) The Bill will be returned to the DDO by PAO if the sufficient budget is not available.
iv) The unspent portion of the budget, if any, authorized by Ministry of Culture at the end of each financial year will lapse as per

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Recommendations made during GST Council meeting held on 22.12.2018
By: – Ganeshan Kalyani
Goods and Services Tax – GST
Dated:- 26-12-2018

Due date of filing GST Annual Return is extended
* Due date of filing GST Annual returns in FORM GSTR-9, FORM GSTR-9A & reconciliation statement in FORM GSTR-9C for the F.Y. 2017-18 shall be further extended till 30.06.2019.
Change in GST rate from 28% to 18%
Pulleys, transmission shafts and cranks, gear boxes etc. falling under HS Code 8483.
Monitors and TVs of upto screen size of 32 inches.
Re-treaded or used pneumatic tyres or rubber
Power bank of lithium ion batteries. Lithium ion batteries are already at 18%.
Digital cameras and video camera recorders
Video games consoles and other games and sports requisites falling under HS Code 9504.
Change in GST rate from 28% to 5%
Parts and accessories for the carriages for disabled persons
Change in GST rate from 18% to 12%
Cork roughly squared or debagged.
Articles

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for temporary purposes under the Customs Convention on the Temporary importation of Private Road Vehicles (carnet de passages-en-douane).
Rate of 5%/18% to be applied based on transaction value of footwear
Uniform GST rate of 12% on Flexible Intermediate Bulk Container (FIBC) from existing 5%/12% (depending on the value)
Change in service tax rates:
Services supplied by banks to Basic Saving Bank Deposit (BSBD) account holders under Pradhan Mantri Jan Dhan Yojana (PMJDY) shall be exempted.
Air travel of pilgrims by non-scheduled/charter operations, for religious pilgrimage facilitated by the Government of India under bilateral arrangements shall attract the same rate of GST as applicable to similar flights in Economy class (i.e. 5% with ITC of input services).
GST rate on cinema tickets above ₹ 100 shall be reduced from 28% to 18% and on cinema tickets upto ₹ 100 from 18% to 12%.
GST rate on third party insurance premium of goods carrying vehicles shall be redu

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ify that the services provided by IFC and ADB are exempt from GST in terms of provisions of IFC Act, 1958 and ADB Act, 1966.
To clarify to West Bengal that services provided by Council/ Board of Primary/ Secondary/ Higher Secondary Education for conduct of examination to its students are exempt.
To clarify that “printing of pictures” falls under service code “998386: Photographic and videographic processing services” of the scheme of classification of services attract GST @18% and not under “998912: Printing and reproduction services of recorded media, on a fee or contract basis”which attracts GST @12%.
To clarify that leasing of pumps and reservoirs by the OMCs to petrol pump dealers is a mixed supply and the Licence Fee Recovery (LFR) charged for the same shall be leviable to GST @ 28%, the rate applicable to pumps. Leasing of land and buildings along with equipment shall fall under heading 9972 (real estate services) and attract GST rate of 18%.
To clarify that the incentive

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y other person based on a contractual arrangement with such institutions.
To clarify that the banking company is liable to pay GST on the entire value of service charge or fee charged to customers whether or not received via business facilitator or the business correspondent.
To issue a clarification to Food Corporation of India (FCI) that the service provided by godown owner in case of lease with services, where the godown owner, besides leasing the warehouse, undertakes to carry out activities of storage and preservation of stored food grains, is the service of storage and warehousing of agricultural produce and the same is exempt.
GST on solar power generating plant and other renewable energy plants:
GST rate of 5% rate has been prescribed on renewable energy devices & parts for their manufacture (bio gas plant/solar power based devices, solar power generating system (SGPS) etc) [falling under chapter 84, 85 or 94 of the Tariff]. Other goods or services used in these plants a

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vement of Rigs, Tools & Spares and all goods on wheels on own account where such movement is not intended for further supply of such goods but for the provision of service does not involve a supply (e.g., movement of testing equipment etc.) and is not be liable to GST.
The goods with description Bagasse Board [whether plain or laminated] falling under Chapter 44 attract GST at the rate of 12%.
Concessional GST rate of 5% applies to the LPG supplied in bulk to an OMC by refiners/fractioners for bottling for further supply to household domestic consumers.
Manure of determination of classification of vitamins, provitamins etc. as animal feed supplements
Sattu or Chattua falling under HS code 1106 and attracts the applicable GST rate.
Polypropylene Woven and Non-Woven Bags and PP Woven and Non-Woven Bags laminated with BOPP falls under HS code 3923 and attract 18% GST rate.
18% GST is applicable on wood logs including the wood in rough/log used for pulping.
Turbo charger is c

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y on the net tax liability of the taxpayer, after taking into account the admissible input tax credit, i.e. interest would be levied only on the amount payable through the electronic cash ledger.
Changes in GST Annual Return Form
Present return format has heading to specify the supplies as declared in returns filed during the year need to be furnished. Now, the heading is amended to specify the supplies as made during the year.
Presently, HSN code of all inward supplies need to be furnished in GST Annual return. Now, it is proposed that HSN code of those inward supplies whose value independently accounts for 10% or more of the total value of inward supplies shall be declared.
All invoices pertaining to previous year irrespective of month in which such invoice is reported in FORM GSTR-1 by the supplier and auto populated in GSTR-2A of the recipient would be auto-populated in Table 8A of GST Annual return.
ITC cannot be availed through FORM GSTR-9 & FORM GSTR-9C.
Monthly Return

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ot basis. The modalities for the same shall be finalized shortly.
All the supporting documents/invoices in relation to a claim for refund in FORM GST RFD-01 shall be uploaded electronically on the common portal at the time of filing of the refund application itself, thereby obviating the need for a taxpayer to physically visit a tax officer for submission of a refund application. GSTN will enable this functionality on the common portal shortly.
Following types of refunds shall be made available through FORM GST RFD-01A
* Refund on account of Assessment / Provisional Assessment / Appeal / Any other Order.
* Tax paid on an intra-State supply which is subsequently held to be inter-State supply and vice-versa
* Excess payment of tax and
* Any other refund
In case of applications for refund in FORM GST RFD-01A (except those relating to refund of excess balance in the cash ledger) which are generated on the common portal before the roll out of the functionality described and wh

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ived only a Provisional ID (PID) till 31.12.2017 for furnishing the requisite details to the jurisdictional nodal officer shall be extended till 31.01.2019. Also, the due date for furnishing FORM GSTR-3B and FORM GSTR-1 for the period July, 2017 to February, 2019 / quarters July, 2017 to December, 2018 by such taxpayers shall be extended till 31.03.2019.
Late fee on delay filing of return is waived
Late fee shall be completely waived for all taxpayers in case FORM GSTR-1, FORM GSTR-3B & FORM GSTR-4 for the months/quarters July, 2017 to September 2018, are furnished after 22.12.2018 but on or before 31.03.2019.
E-way bill can be generated only if GST return is filed
Taxpayers who have not filed the returns for two consecutive tax periods shall be restricted from generating e-way bills. This provision shall be made effective once GSTN / NIC make available the required functionality.
Changes made in the Act would be notified w.e.f. 01.02.2019:
Changes made by CGST (Amendment) Act

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e collection targets vis a vis original assumptions discussed during the design of GST system, its implementation and related structural issues.
The Group of Ministers will be assisted by the committee of experts from Central Government, State Governments and the NIPFP (National Institute of Public Finance and Planning), who would study and share the findings with GoM. The GoM in turn would give its recommendation to the GST Council. The members of the GoM and the Committee of experts would be announced in due course of time.
The requisite Notifications/Circulars for implementing the above recommendations of the GST Council shall be issued shortly.
Reply By Devender Wadhwa as =
Dear Sir,
Can you please discuss that this change in the GST rate affects the sector majorly and how much inflation is reduced (Expected)?
Dated: 27-12-2018
Reply By KASTURI SETHI as =
Dear Sh.Kalyani Ji,
Nice compilation. It is ready recknor and useful.
K.L.SETHI
Dated: 27-12-2018
Reply By Gan

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Key updates of 31st GST Council Meeting Dec 2018
By: – Sandeep Rawat
Goods and Services Tax – GST
Dated:- 26-12-2018

Below are the Key updates of 31st GST Council Meeting
1.) GST Rates of 7 items reduced from 28% to 18% . Items include tyres, VCR, billiards & snookers and lithium batteries.
2.) GST Rate of 33 items have come down from 18% tax slab to 12% and 5% tax bracket as they are common man's consumption goods. These items include Third Party insurance Vehicle and Solar Power Systems
3.) Only 34 items will be taxed at 18% GST Rate or more
4.) All items except luxury goods would be taxed under 28% GST Rate
5.) The GST Council is also looking into introducing composition scheme for the real estate sector. A view

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Export benefits to IT and ITES Industries under GST
Query (Issue) Started By: – Shyam Agarwal Dated:- 26-12-2018 Last Reply Date:- 1-1-2019 Goods and Services Tax – GST
Got 13 Replies
GST
Sir, IT & ITES Industries operates its business having head office in India and having branches outside india. Now In order to providing services to its foreign clients, part of service provision is done from India and rest part is completed by its foreign branches but Invoice to all foreign clients is done from india (from head office).whether it be export of service a OR Not to be export by contending that part of service is performed from outside india i.e.by foreign branch?
Reply By Mahadev R:
The Reply:
One of the condition for export of service is that the supplier of service is located in India. In this case, to the extent service provided by foreign branch could be considered as non-export. However, here we need to understand if this foreign branch is providing service to foreig

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ia even without Consideration.
Therefore, the transaction between head office in India and foreign branch outside india is clear. However the concerned query is about services provided collectively by foreign branch and Indian head office to the Foreign customer (who are not related persons) whether the same should be qualified as an Export because one may contend that as per one of condition for export is that supplier should be in India and in the said situation location of supplier is technically in India as well as outside india though Agreement with foreign customers are executed by Indian head office, Invoices are issued by Indian head office as well as payment in foreign currency is also received by Indian head office. Further, as per information from some sources it was discussed in 31st GST Council meeting, the same issue was discussed and official said that as long as transaction is permitted by RBI the same should be considered as a an Export. Is it correct? Please suggest.

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ot enjoy the benefits of export as long as Agreement for service is with Indian head office and payment in foreign currency is also received by Indian head office. Please elaborate your suggestions as your guidance is always useful for me.
Reply By KASTURI SETHI:
The Reply:
What does ITES stand for ?
Reply By Shyam Agarwal:
The Reply:
Sir, ITES stands for Information Technology Enabled Services.
Reply By KASTURI SETHI:
The Reply:
Dear Sh.Agarwal Ji,
With reference to second part of the query, it is not taxable. It cannot be termed as export of service.This service is being provided from non-taxable territory(jurisdiction) to non taxable territory(jurisdiction) by foreign branch, a distinct person as intermediary. Place of supply is covered under Section 13 (8) (b) of IGST Act, 2017. Also read the following:-
Extract of FAQ for GST on IT/ITES dated 18.8.2017
Question 11 : I am an Indian Company who makes software and sells it outside the country. I have hired a firm (no

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usiness;obtained (a fixed establishment elsewhere), the location of such fixed establishment;
(3) where a supply is made from more than one establishment, whether the place of business or fixed establishment, the location of the establishment most directly concerned with the provision of the supply; and
(4) in absence of such places, the location of the usual place of residence of the supplier.
The location of 'C' is to be determined by applying the criterion from (2), or (3), or as the case may be, (4).
I am of the view that Notification No.15/18-IT-(Rate) dated 26.7.18 is not applicable for the purpose of exemption from IGST.
Reply By Mahadev R:
The Reply:
More clarification on this in today's circular no.78
Reply By KASTURI SETHI:
The Reply:
In the situation explained by the querist, today's circular cannot be applied here. The present situation is not import of service. Hence no RCM.
Reply By Shyam Agarwal:
The Reply:
Respected both of Experts, As Mahadev Sir h

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Profiteering Allegations in Garment Supply Deemed Unsustainable u/s 171 of CGST Act, 2017.
Case-Laws
GST
Profiteering – supply of Readymade Garments – benefit of reduction in the rate of tax

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Profiteering Allegations on Panasonic LED Supply Dismissed Due to Post-GST Tax Rate Change Under CGST Act Section 171.
Case-Laws
GST
Profiteering – supply of “Panasonic LED TH43E200DX#45580

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Mattress Price Hike Due to Tax Increase Not Profiteering, Says Section 171 of CGST Act 2017.
Case-Laws
GST
Profiteering – supply of Peps Spring Koil Bornell Normal Maroon 75x60x6″ Mattress –

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INDOFIL INDUSTRIES LTD Versus STATE OF GUJARAT
GST
2019 (2) TMI 1151 – GUJARAT HIGH COURT – 2019 (30) G. S. T. L. J53 (Guj.)
GUJARAT HIGH COURT – HC
Dated:- 26-12-2018
R/SPECIAL CIVIL APPLICATION NO. 20559 of 2018
GST
MR HARSHA DEVANI ANXD DR A. P. THAKER, JJ.
For The Respondent (s) : UCHIT N SHETH (7336)
For The Respondent (s) : ADVANCE COPY SERVED TO GOVERNMENT PLEADER/PP (99)
ORAL ORDER
(PER : HONOURABLE MS.JUSTICE HARSHA DEVANI)
1. Mr. Uchit Sheth, learned advocate for the petitioners invited the attention of the court to the provisions of section 7 of the Integrated Goods and Services Tax Act, 2017, to submit that by virtue of sub-section (5) thereof, supply of goods or services or both to or by a Special E

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FEDERATION OF GUJARAT WEAVERS WELFARE ASSOCIATION Versus UNION OF INDIA
GST
2019 (1) TMI 358 – GUJARAT HIGH COURT – 2019 (22) G. S. T. L. 9 (Guj.)
GUJARAT HIGH COURT – HC
Dated:- 26-12-2018
R/SPECIAL CIVIL APPLICATION NO. 20626 of 2018
GST
MS HARSHA DEVANI AND DR A. P. THAKER, JJ.
For The PETITIONER (s) : MR DHAVAL SHAH (2354)
ORAL ORDER
(PER : HONOURABLE MS. JUSTICE HARSHA DEVANI)
Mr. Prakash Shah learned advocate with Mr. Dhaval Shah, learned advocate for the petitioner invited the attention of the Court to sub-section (3) of Section 54 of the Central Goods and Services Tax Act, 2017, to submit that the clause (ii) thereof provides that where the credit has accumulated on account of rate of tax on inputs being

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It was submitted that at the same time, vide clause (ii) of the proviso it has been provided that in respect of said goods, the accumulated input tax credit lying unutilized in balance, after payment of tax for and upto the month of July, 2018 on the inward supplies received up to the 31st day of July, 2018 shall lapse. It was submitted that sub-section (3) of section 54 empowers the Government to notify the goods in respect of which the proviso to subsection (3) of section 54 would not apply. However, the said section does not in any manner empower the Government to provide for lapsing of the input tax credit. It was submitted that the respondents are therefore not granting refund to the petitioner unless the petitioner reverses the input

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M/s M. Junction Services Ltd. Versus Commr. of CGST & Central Excise, Kolkata North
Service Tax
2019 (1) TMI 66 – CESTAT KOLKATA – TMI
CESTAT KOLKATA – AT
Dated:- 26-12-2018
S.T. Appeal No.78641/18 – FO/A/77158/2018
Service Tax
SHRI P. K. CHOUDHARY, JUDICIAL MEMBER
Shri Nanda Kishore Kothari & Shri Akshay Goenka, both C.As. for the Appellant (s)
Shri S. Mukhopadhyay, Supdt.(A.R.) for the Revenue
ORDER
Per Shri P.K. Choudhary :
The present appeal is listed for admission today. After hearing both sides and despite the amount involved in this case being below the threshold of Rs. 2.00 lakhs, the appellant intends to contest the issue on merits, which is admitted.
3. With the consent of both sides, the appeal itse

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amount of Rs. 1,72,331/- as service tax (including cess) already paid on 30.03.2012, should not be appropriated.
(ii) An amount of Rs. 67,253/- calculated as interest should not be demanded and recovered from them in terms of Section 75 of the said Act and the said amount of Rs. 67,253/- already paid, should not be appropriated.
(iii) Penalty should not be imposed upon them in terms of Section 78 of the said Act for violation of the above mentioned provisions of the said Act and the said Rules.
(iv) Penalty should not be imposed upon them in terms of Section 77 of the said Act for non-obtaining Service Tax Registration and non-submission of ST-3 Returns for material period.
5. The Adjudicating Authority confirmed the demand of Service T

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vice tax along with interest had already been paid by the assessee, for which, separate show-cause notice was issued, which culminated into a separate proceeding altogether. Subsequently, present show-cause notice has been issued for demanding service tax on the amount of Tax Deducted at Source (TDS), which was inadvertently left out by the assessee. On being pointed out, they immediately paid the amount of Rs. 1,72,331/- along with interest amounting to Rs. 67,253/- and intimated to the jurisdictional authorities.
8. I find that there is no material available on record to establish the allegation of suppression of facts, mis-declaration etc. with an intent to evade payment of service tax. On the other hand, the appellant assessee immediat

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Exemption of Igst
Query (Issue) Started By: – Piyush Kumar Dated:- 25-12-2018 Last Reply Date:- 26-12-2018 Customs – Exim – SEZ
Got 4 Replies
Customs
Hello sir
If I export an item to Nepal which I purchased locally from Bihar paying 6+6 cgst and igst…will the sales will be applicable for exemption from Igst. By
Giving letter of undertaking And how I will claim my Gst paid for purchase?
Reply By KASTURI SETHI:
The Reply:
Yes. You can export and claim refund of GST paid from t

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Taxability of Milk Chilling & Storage Charges
Query (Issue) Started By: – sanjeev agrawal Dated:- 25-12-2018 Last Reply Date:- 26-12-2018 Goods and Services Tax – GST
Got 3 Replies
GST
As per Notification No. 12/2017 dated 28 June, 2017
Agriculture produce means " Any produce out of cultivation of plants and rearing of all life forms of animals except the rearing of horses, for food, fibre, fuel, raw material or other similar products, on which either no further processing is done of such processing is done as is usually done by a cultivator or producer which does not alter its essential charateristics but makes it marketable for primary market."
As per S. no. 54 Any services relating to cultivation of plants and re

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e) dated 28.6.17 as amended:-
25.
0401
Fresh milk and pasteurised milk, including separated milk, milk and cream, not concentrated nor containing added sugar or other sweetening matter, excluding Ultra High Temperature (UHT) milk
26.
0403
Curd; Lassi; Butter milk
27.
0406
Chena or paneer, other than put up in unit containers and bearing a registered brand name;
Reply By KASTURI SETHI:
The Reply:
Chilling does not amount to manufacture as it does not change the character of the goods. It avoids to spoiling milk. CESTAT Delhi and Jaipur have decided the issue in favour of assessee but the department has filed civil writ petition in the Supreme Court. In my view, it conforms to the definition of 'agriculture produce'. Howeve

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admitted the Diary No. 10936 of 2017 filed by Commissioner of Central Excise, Jaipur against the CESTAT Final Order No. 51354/2016, dated 28-4-2016 as reported in 2018 (10) G.S.T.L. 66 (Tri.-Del.) = 2016 (4) TMI 1144 – CESTAT NEW DELHI (Acclaim Foods Private Limited v. Commissioner).
The Appellate Tribunal in its impugned order had held that the activity of chilling milk to required temperature, for and on behalf of customer, in its plant by assessee, for carrying in insulated tankers for further processing at customer's plant, as not covered under Business Auxiliary Service following decision in 2015 (37) S.T.R. 660 (Tri. – Del.) = 2014 (6) TMI 493 – CESTAT NEW DELHI SHARMA ICE FACTORY Versus COMMISSIONER OF CENTRAL EXCISE, JAIPUR-I. The

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Indian Supplier to Duty-Free Shop Not 'Export' Under GST; Rule 96-A Bond/LUT Required for Duty-Free Supplies.
Case-Laws
GST
Exemption from GST – duty free shop – As the supply to a DFS by an Indian supplier is not to 'a place outside India', therefore, such supplies do not qualify as 'export of goods' under GST. Consequently, such supplies cannot be made without payment of duty by furnishing a bond/letter of undertaking (LUT) under rule 96-A of the CGST Rules, 2017.
TMI Updates – Hi

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Court Allows Interrogation of Custodial Accused in GST Evasion Case Involving Fake Invoices; Statements to be Recorded.
Case-Laws
GST
Permission to interrogate and record statement of accused

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Bail Canceled for Accused in Fake Invoice Scam Involving Bogus Companies and Dummy Proprietors.
Case-Laws
GST
Cancellation of Bail – opening bogus companies in the name of dummy proprietors a

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GST and Import Duty Levied on Goods from Duty-Free Shops Before Immigration Clearance; Customs Action Upheld.
Case-Laws
GST
Levy of GST / import duty goods purchase from Duty free shops – sho

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Cars for handicapped
Query (Issue) Started By: – Tarun Agarwal Dated:- 25-12-2018 Last Reply Date:- 26-12-2018 Goods and Services Tax – GST
Got 1 Reply
GST
Dear sir iiam a handicapped person with below knee amputation , as per GOVT norms there is some concession in GST for handicapped and they have to get a certificate from heavy industries to avail that , there is a form where doctor in which Doctor and CMO of the Hospital certified and on the basis of that ministry issues the cert

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Interest Calculation u/s 50 of CGST Act
Query (Issue) Started By: – PANKAJ KUMAR Dated:- 25-12-2018 Last Reply Date:- 27-12-2018 Goods and Services Tax – GST
Got 6 Replies
GST
Hi..
We had liability for the month of July 2018 ₹ 50 Lakh and CENVAT of ₹ 45 Lakh, net liability comes to ₹ 5 lakh. my query is on which amount we have to pay interest u/s 50 of CGST act.
We have to pay interest on ₹ 50 Lakh as liability still not set off at the portal?
Reply By KASTURI SETHI:
The Reply:
You are required to pay interest on RS.50 lakhs as Liability was not set off and not any amount was credited into Govt . Account.
Reply By PAWAN KUMAR:
The Reply:
rightly explained by kasturi sir. on total amount of rs. 50 l

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Ancillary supplies to Health Care Services
By: – CA Akash Phophalia
Goods and Services Tax – GST
Dated:- 25-12-2018

Whether medicines, consumables and implants used in the course of providing health care services are taxable?
Introduction
Health care services always enjoy a special place in the revenue laws. Generally, health care services provided to treat the deficiency and for diagnosis of any disease is exempted form payment of tax. In this article author aims to discuss the implication about the taxability of the ancillary supplies made to patients during the course of provision of health care services.
Meaning of Health Care Services
Health care services means any service by way of diagnosis or treatment or care for illness, injury, deformity, abnormality or pregnancy in any recognized system of medicines in India and includes services by way of transportation of the patient to and from a clinical establishment, but does not include hair transplant or cosmetic

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nt. The out-patients are those who visit the hospital. for routine check-ups or clinical visits.
The medicines, consumables and implants are generally used in the course of providing services to the patients admitted for diagnosis or treatment in the hospital or clinical establishment is naturally bundled in the ordinary course of business. Now the moot question arises whether the said medicines, consumables and implants used for providing services to the patients admitted are taxable as an independent supply or whether the supply of medicines, consumables and implants alongwith health care services shall be classified as supply of health care services or supply of medicines.
Naturally bundled services
The concept of naturally bundled services was explained in the Education Guide issued by the C.B.E. & C. in the year 2012 (the Education Guide) and the same is borrowed in explaining the meaning of naturally bundled services under GST law vide CBEC Flyer No 4 dated 1-1-2018. The rele

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ertain services supplied during provision of health care services by hospitals. The relevant extract is reproduced here for quick reference:-
* Retention Money – Hospitals charge the patients, say, ₹ 10000/- and pay to the consultants/technicians only ₹ 7500/- and keep the balance for providing ancillary services which include nursing care, infrastructure facilities, paramedic care, emergency services, checking of temperature, weight, blood pressure, etc. Will GST be applicable on such money retained by the hospitals?
Healthcare services have been defined to mean any service by way of diagnosis or treatment or care for illness, injury, deformity, abnormality or pregnancy in any recognized system of medicines in India [para 2(zg) of notification No. 12/2017-C.T. (Rate)]. Therefore, hospitals also provide healthcare services. The entire amount charged by them from the patients including the retention money and the fee/payments made to the doctors etc., is towards the healt

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atients are admitted to the hospital when they are extremely ill or have severe physical trauma. As far as an in-patients are concerned, hospital is expected to provided lodging, care, medicine and food as part of treatment under supervision till discharge from hospital. The nature of the various services in a bundle of services will help in determining whether the services are bundled in the course of business. If the nature of services is such that one of the services is the, main services and other services combined with such services are in the nature of incidental or ancillary services which help in better utility of main services then the various element of the services are said to be naturally bundled in course of business. Hence the medicines, implants, room provided on rent, dietary food advised by nutritionists etc. used in course of providing. Health care services to the patients admitted for diagnosis or treatment in the hospitals or clinical establishment is undoubtedly na

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ves no control over his continuous treatment. As far as an outpatient is concerned there is no difference for procuring medicine either from the dispensing outlet within the hospital or from outside the hospital. In both places medicines dispensed based on prescription. Hence there is no privilege for the hospitals that are dispensing medicines to outpatients. Therefore pharmacy run by hospital dispensing medicine to outpatient or bystanders or others can be treated as individual supply of medicine not covered under the ambit of heath care services. Hence such supply of medicine and allied goods are taxable.
Conclusion
In view of the above analysis, legal canons and decision by AAR in 2018 (18) GSTL 831 (AAR-GST) IN RE: KIMS HEALTH CARE MANAGEMENT LTD [ 2018 (11) TMI 281 – AUTHORITY FOR ADVANCE RULINGS, KERALA ], the conclusions can be drawn as under:-
Situation
Kind of service
Taxability
Remarks
I
Out-patient services
(Diagnosis or Treatment)
Not-taxable
Such service shall

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GST Registration
Query (Issue) Started By: – Kaustubh Karandikar Dated:- 24-12-2018 Last Reply Date:- 26-12-2018 Goods and Services Tax – GST
Got 2 Replies
GST
XYZ registered with GST in Maharashtra, have taken service contracts of machine maintenance, under which they depute their service team on sites at different states. At the customers site, the customer is providing accommodation facility in their guest house since the service contract is for a longer duration. 1) Is XYZ requi

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ITC OF RCM PAID ON GTA SERVICES AVILED ON NON TAXABLE SUPPLY
Query (Issue) Started By: – DHARMENDRA SONI Dated:- 24-12-2018 Last Reply Date:- 26-12-2018 Goods and Services Tax – GST
Got 3 Replies
GST
Dear Sir ,
We are supplier of Taxable & Exempt Product . We are paying RCM on GTA services availed for inputs of both type of supplies. Kindly suggest us can we take ITC of RCM paid for both types of supplies.
Reply By KASTURI SETHI:
The Reply:
Under RCM, first you will pay in cash.

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