Goods and Services Tax

GST on Housing Society for rendering services to its members
By: – Sanjeev Singhal
Goods and Services Tax – GST
Dated:- 23-11-2018

First of All housing societies means unincorporated body or Non -Profit entity registered under any law for the time being in force whether it is cooperative society or society register under Societies Act.
“Simply put these are a collective body of persons, who stay in a residential society. As a collective body, they would be supplying certain services to its members, be it collecting statutory dues from its members and remitting to statutory authorities, maintenance of the building, security etc.”
A Society is akin to a club, which is composed of its members. So, can a service provided by a Housing Society to its members be treated as service provided by one person to another. The answer is yes. The following extracts of the GST law will make the position clear.
Section- 9 of the CGST Act says that GST is applicable on “supply of Goods

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cluding capital goods and services in connection with commencement or closure of business;
(e) provision by a club, association, society, or any such body (for a subscription or any other consideration) of the facilities or benefits to its members;
(f) admission, for a consideration, of persons to any premises;
(g) services supplied by a person as the holder of an office which has been accepted by him in the course or furtherance of his trade, profession or vocation;
(h) services provided by a race club by way of totalisator or a licence to book maker in such club; and
(i) any activity or transaction undertaken by the Central Government, a State Government or any local authority in which they are engaged as public authorities.
Thus, as per section 2(17)(e) of the CGST Act, 2017 provision by a club, association, society, or any such body (for a subscription or any other consideration) of the facilities or benefits to its members is deemed to be a business. The activities of the ho

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ing society charge ₹ 8500 per month for all services provided to its members, GST shall be charged on ₹ 1000 only. Therefore charges collected by the society on account of property tax, electricity charges shall be excluded while calculating the limit of ₹ 7500.
A per the TRU F.N. 332/04/2017 issued by the Ministry of Finance, the following FAQ has been released .
Subject: FAQs on levy of GST on supply of services to the Co-operative society- reg S. No.
Question
Answer
1.
The society collects the following charges from the members on quarterly basis as follows:
1.Property Tax-actual as per Municipal Corporation of Greater Mumbai (MCGM)
2.Water Tax- Municipal Corporation of Greater Mumbai (MCGM)
3.Non- Agricultural Tax- Maharashtra State Government
4.Electricity charges
5.Sinking Fund- mandatory under the Bye-laws of the Co-operative Societies
6.Repairs & maintenance fund
7.Car parking Charges
8.Non Occupancy Charges
9.Simple interest for late payment.

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t for its members.
2.
As per guidelines on maintenance charges upto ₹ 5000/- no GST is applicable. Maintenance charges means only maintenance or collection of all charges
This is applicable to only the reimbursements of charges or share of up to an amount of five thousand rupees per month per member for sourcing of goods or services from a third person for the common use of its members. Here, charges mean the indivisual contributions made by members of the society to avail services or goods by the society from a third party for common use. [*Entry 77(c) of notification no 12/2017 Central Tax (Rate) dated 28.6.2017 refers]
3.
Monthly maintenance (all above charges) are below ₹ 5000/-but yearly
Reimbursement of charges or share of contribution up to an amount of ₹ 5000/- per
*Amount of ₹ 5000 shall be read as ₹ 7500 amended since 25.01.2018.
All Housing Societies Falls under the Parameter of Notification No. 12 dated 28.06.2017.
– > Answer is No
Re

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ANTI-PROFITEERING IN GST: CONSTRUCTIVE EVIDENCE MUST
By: – Dr. Sanjiv Agarwal
Goods and Services Tax – GST
Dated:- 23-11-2018

Section 171 of GST law is the most powerful provision to check excessive profiteering resorted to by businesses owing to tax efficiency accruing because of goods and services tax (GST). The National Anti-profiteering Authority (NAA) entrusted with disposing of such cases including implementation of provision and monitoring has already decided over a dozen of anti-profiteering complaints and ruled, both for and against complaints.
The law of positive evidence has been applied by NAA in all such cases and where there was no evidence of anti-profiteering stance or it could not be proved in view of lack of evidence, such complaints were decided in favour of business entity or against the complainant. In other words, complainant has to provide substantial evidence to prove that the accused business entity has indulged in anti-profiteering or the bus

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conducted by Director General Anti-profiteering against could not establish profiteering for want of credible evidence of profiteering against a specific supplier of KFC and accordingly no violation of provisions of section 171 could be established.
It was alleged that company had not passed on the benefit of reduction of tax from 18% to 5% to its customers. He had also alleged that it was supplying him Burger @ ₹ 32/- per unit and after adding 18% GST, he was paying about ₹ 40/- per unit before the tax was reduced w.e.f. 15.11.2017, whereas he was purchasing the above product @ ₹ 42/- per unit after the reduction in the rate of tax and therefore, the company was illegally profiteering by appropriating the amount of reduction of tax by fleecing the poor customers as he was denying them the benefit of reduction and therefore action should be taken against him.
However, on being asked by DGAP to provide the pre and post GST invoices of the products sold and other det

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ions of section 171 of the CGST Act, 2017 and the complaint being non maintainable, was dismissed.
Amway India Case
In another complaint in the matter of Amway India, i.e. DGAP v. Amway India Enterprises Pvt. Ltd., National Anti-profiteering Authority vide its Order dated 29th October, 2018 and reported in 2018 (10) TMI 1614 – NATIONAL ANTI-PROFITEERING AUTHORITY has come to the conclusion that application filed by applicant requesting for action against Amway for alleged violation of provisions of section 171 on ground that it had not passed on benefit of reduction in GST rates from 28 per cent to 18 per cent on selected items to its customers/Amway Business Owners, would not be maintainable as there was no specific evidence of profiteering against respondent. In absence of description of any product, name of supplier and any specific evidence of profiteering by respondent no further investigation could be conducted. Hence, no violation of provisions of section 171 had been found.

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KERALA STATE FINANCIAL ENTERPRISES LTD. Versus UNION OF INDIA REPRESENTED BY THE SECRETARY, NEW DELHI, COMMISSIONER OF CENTRAL EXCISE, CUSTOMS AND SERVICE TAX (APPEALS), COCHIN, ADDITIONAL COMMISSIONER CENTRAL GST AND CENTRAL EXCISE TRIVANDRUM COMMISIONERATE, TRIVANDRUM, JOINT COMMISSIONER CENTRAL GST AND CENTRAL EXCISE, THIRUVANANTHAPURAM, ASSISTANT COMMISSIONER CENTRAL GST AND CENTRAL EXCISE, TRIVANDRUM AND SUPERINTENDENT CENTRAL GST AND CENTRAL EXCISE, ATTINGAL
Service Tax
2018 (11) TMI 1474 – KERALA HIGH COURT – TMI
KERALA HIGH COURT – HC
Dated:- 23-11-2018
WP(C).No. 35572 of 2018, WP(C).No. 35796 of 2018 And WP(C).No. 35607 of 2018
Service Tax
MR DAMA SESHADRI NAIDU, J.
For The Petitioner : ADVS. SRI.SANDEEP GOPA

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The Goa Goods and Services Tax (Amendment) Ordinance, 2018 (Ordinance No. 3 of 2018)
8/3/2018-LA Dated:- 23-11-2018 Goa SGST
GST – States
Goa SGST
Goa SGST
GOVERNMENT OF GOA
Department of Law & Judiciary
Legal Affairs Division
__
Notification
8/3/2018-LA
The Goa Goods and Services Tax (Amendment) Ordinance, 2018 (Ordinance No. 3 of 2018), which has been promulgated by the Governor of Goa on 20-11-2018, is hereby published for general information of the public.
Sharad G. Marathe, Additional Secretary
(Law).
Porvorim, 23rd November, 2018.
–
The Goa Goods and Services Tax (Amendment) Ordinance, 2018 (Ordinance No. 3 of 2018)
Promulgated by the Governor of Goa in the Sixty-ninth Year of the Republic of India.
An Ordinance to amend the Goa Goods and Services Tax Act, 2017 (Goa Act 4 of 2017).
Whereas, the Legislative Assembly of Goa is not in session and the Governor of Goa is satisfied that circumstances exist which render it necessary for her to take immediate

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the expression “the Appellate Authority, the Appellate Tribunal and the Authority referred to in sub-section (2) of section 171” shall be substituted;
(ii) in clause (16), for the words “Central Board of Excise and Customs”, the words “Central Board of Indirect Taxes and Customs” shall be substituted;
(iii) in clause (17), for sub-clause (h), the following sub-clause shall be substituted, namely:-
“(h) activities of a race club including by way of totalisator or a license to bookmaker or activities of a licensed bookmaker in such club; and”;
(iv) clause (18) shall be omitted;
(v) in clause (35), for the expression “clause (c)”, the expression “clause (b)” shall be substituted;
(vi) in clause (69), in sub-clause (f), after the word and figures “article 371”, the expression “and article 371J” shall be inserted;
(vii) in clause (102), the following Explanation shall be inserted, namely:-
“Explanation.- For the removal of doubts, it is hereby clarified that the expression “services

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(1), (1A) and (2)” shall be substituted.
4. Amendment of section 9.- In section 9 of the principal Act, for sub-section (4), the following sub-section shall be substituted, namely:-
“(4) The Government may, on the recommendations of the Council, by notification, specify a class of registered persons who shall, in respect of supply of specified categories of goods or services or both received from an unregistered supplier, pay the tax on reverse charge basis as the recipient of such supply of goods or services or both, and all the provisions of this Act shall apply to such recipient as if he is the person liable for paying the tax in relation to such supply of goods or services or both.”.
5. Amendment of section 10.- In section 10 of the principal Act,-
(i) in sub-section (1),-
(a) for the expression “in lieu of the tax payable by him, an amount calculated at such rate”, the expression “in lieu of the tax payable by him under sub-section (1) of section 9, an amount of tax calculat

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endment of section 13.- In section 13 of the principal Act, in sub-section (2), the expression “sub-section (2) of” wherever it occurs, shall be omitted.
8. Amendment of section 16.- In section 16 of the principal Act, in sub-section (2),-
(i) in clause (b), for the Explanation, the following Explanation shall be substituted, namely:-
“Explanation.- For the purposes of this clause, it shall be deemed that the registered person has received the goods or, as the case may be, services-
(i) where the goods are delivered by the supplier to a recipient or any other person on the direction of such registered person, whether acting as an agent or otherwise, before or during movement of goods, either by way of transfer of documents of title to goods or otherwise;
(ii) where the services are provided by the supplier to any person on the direction of and on account of such registered person.”;
(ii) in clause (c), for the word and figures “section 41”, the words, figures and letter “section

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amely:-
(A) further supply of such vessels or aircraft; or
(B) transportation of passengers; or
(C) imparting training on navigating such vessels; or
(D) imparting training on flying such aircraft;
(ii) for transportation of goods;
(ab) services of general insurance, servicing, repair and maintenance in so far as they relate to motor vehicles, vessels or aircraft referred to in clause (a) or clause (aa):
Provided that the input tax credit in respect of such services shall be available-
(i) where the motor vehicles, vessels or aircraft referred to in clause (a) or clause (aa) are used for the purposes specified therein;
(ii) where received by a taxable person engaged,-
(I) in the manufacture of such motor vehicles, vessels or aircraft; or
(II) in the supply of general insurance services in respect of such motor vehicles, vessels or aircraft insured by him;
(b) the following supply of goods or services or both,-
(i) food and beverages, outdoor catering, beauty treatm

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he principal Act, in the Explanation, in clause (c), for the words and figures “under entry 84,”, the words, figures and letter “under entries 84 and 92A” shall be substituted.
11. Amendment of section 22.- In section 22 of the principal Act,-
(i) in sub-section (1), after the proviso, the following proviso shall be inserted, namely:-
“Provided further that where such person makes taxable supplies of goods or services or both from a special category State in respect of which the Central Government has enhanced the aggregate turnover referred to in the first proviso, he shall be liable to be registered if his aggregate turnover in a financial year exceeds the amount equivalent to such enhanced turnover.”;
(ii) in the Explanation, in clause (iii), after the word “Constitution”, the expression “except the State of Jammu and Kashmir and States of Arunachal Pradesh, Assam, Himachal Pradesh, Meghalaya, Sikkim and Uttarakhand” shall be inserted.”.
12. Amendment of section 24.- In section

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14. Amendment of section 29.- In section 29 of the principal Act,-
(i) in the heading, after the word “Cancellation”, the words “or suspension” shall be inserted;
(ii) in sub-section (1), after clause (c), the following proviso shall be inserted, namely:-
“Provided that during pendency of the proceedings relating to cancellation of registration filed by the registered person, the registration may be suspended for such period and in such manner as may be prescribed.”;
(iii) in sub-section (2), after the proviso, the following proviso shall be inserted, namely:-
“Provided further that during pendency of the proceedings relating to cancellation of registration, the proper officer may suspend the registration for such period and in such manner as may be prescribed.”.
15. Amendment of section 34.- In section 34 of the principal Act,-
(i) in sub-section (1),-
(a) for the words “Where a tax invoice has”, the words “Where one or more tax invoices have” shall be substituted;
(b) for

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the words “in such form and manner as may be prescribed”, the expression “in such form, manner and within such time as may be prescribed” shall be substituted;
(b) the words “on or before the twentieth day of the month succeeding such calendar month or part thereof” shall be omitted;
(c) the following proviso shall be inserted, namely:-
“Provided that the Government may, on the recommendations of the Council, notify certain classes of registered persons who shall furnish return for every quarter or part thereof, subject to such conditions and safeguards as may be specified therein.”;
(ii) in sub-section (7), the following proviso shall be inserted, namely:-
“Provided that the Government may, on the recommendations of the Council, notify certain classes of registered persons who shall pay to the Government the tax due or part thereof as per the return on or before the last date on which he is required to furnish such return, subject to such conditions and safeguards as may be spec

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availing of input tax credit by the recipient and verification thereof shall be such as may be prescribed.
(3) The procedure for furnishing the details of outward supplies by the supplier on the common portal, for the purposes of availing input tax credit by the recipient shall be such as may be prescribed.
(4) The procedure for availing input tax credit in respect of outward supplies not furnished under sub-section (3) shall be such as may be prescribed and such procedure may include the maximum amount of the input tax credit which can be so availed, not exceeding twenty per cent. of the input tax credit available, on the basis of details furnished by the suppliers under the said subsection.
(5) The amount of tax specified in the outward supplies for which the details have been furnished by the supplier under sub-section (3) shall be deemed to be the tax payable by him under the provisions of the Act.
(6) The supplier and the recipient of a supply shall be jointly and severally li

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word and figures “section 45”, the words “and to perform such other functions” shall be inserted.
20. Amendment of section 49.- In section 49 of the principal Act,-
(i) in sub-section (2), for the word and figures “section 41”, the words, figures and letter “section 41 or section 43A” shall be substituted;
(ii) in sub-section (5),-
(a) in clause (c), the following proviso shall be inserted, namely:-
“Provided that the input tax credit on account of State tax shall be utilized towards payment of integrated tax only where the balance of the input tax credit on account of central tax is not available for payment of integrated tax;”;
(b) in clause (d), the following proviso shall be inserted, namely:-
“Provided that the input tax credit on account of Union territory tax shall be utilized towards payment of integrated tax only where the balance of the input tax credit on account of central tax is not available for payment of integrated tax;”.
21. Insertion of new section 49A and se

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, in sub-section (9), for the word and figures “section 37”, the words and figures “section 37 or section 39” shall be substituted.
23. Amendment of section 54.- In section 54 of the principal Act,-
(i) in sub-section (8), for clause (a), the following clause shall be substituted, namely:-
“(a) refund of tax paid on export of goods or services or both or on inputs or input services used in making such exports;”;
(ii) in the Explanation, in clause (2),-
(a) in sub-clause (c), in item (i), after the words “foreign exchange”, the words “or in Indian rupees wherever permitted by the Reserve Bank of India” shall be inserted;
(b) for sub-clause (e), the following sub-clause shall be substituted, namely:-
“(e) in the case of refund of unutilised input tax credit under clause (ii) of the first proviso to sub-section (3), the due date for furnishing of return under section 39 for the period in which such claim for refund arises;”.
24. Amendment of section 79.- In section 79 of the prin

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ipal Act, in sub-section (1), in clause (b), after the proviso, the following proviso shall be inserted, namely:-
“Provided further that the period of one year and three years may, on sufficient cause being shown, be extended by the Commissioner for a further period not exceeding one year and two years respectively.”.
29. Amendment of section 173.- In section 173 of the principal Act, in clause (ii), for the expression “Act 16 of 1969”, the expression “Act 7 of 1969” shall be substituted.
30. Amendment of Schedule I.- In Schedule I of the principal Act, in paragraph 4, the word “taxable” shall be omitted.
31. Amendment of Schedule II.- In Schedule II of the principal Act, in the heading, after the word “ACTIVITIES”, the words “OR TRANSACTIONS” shall be inserted and shall be deemed to have been inserted with effect from the 1st day of July, 2017.
32. Amendment of Schedule III.- In Schedule III of the principal Act,-
(i) after paragraph 6, the following paragraphs shall be inserted

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Warranty Charges
Query (Issue) Started By: – Kaustubh Karandikar Dated:- 22-11-2018 Last Reply Date:- 22-11-2018 Goods and Services Tax – GST
Got 1 Reply
GST
XYZ(India) importing goods from PQR (Japan) which is a parent company. XYZ re-selling these goods to customers in India. During warranty period, if any defect found in these goods, XYZ giving free replacement to the customers in India and the amount for the same is recovered from PQR as reimbursement of warranty charges. Is XYZ

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Revocation of GST
Query (Issue) Started By: – Pranav Mishra Dated:- 22-11-2018 Last Reply Date:- 28-11-2018 Goods and Services Tax – GST
Got 4 Replies
GST
My GST was cancelled due to failure of non filing, to which I filed all dues and penalties and submitted hard copy to the proper officer. I was told to submit revocation form online which was not accessible to me. However the login to the GST portal was denied. I talked to the customer support of GST where they took time to look into any IT related issue but after few weeks I was directed to the proper officer again. Proper officer somehow was able to open my GST portal but the revocation section was still not working. They kept on calling be week after week to look into the

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etings related to the same. I am running a small organization and the refund has my rolling amount in it. Please tell me what are the other possibilities I have now to get the refund as its a huge amount for me which is stuck without which I would have to shutdown the firm and run away from whole world.
Reply By DR.MARIAPPAN GOVINDARAJAN:
The Reply:
Please file a writ petition before the High Court.
Reply By Kishan Barai:
The Reply:
Plz don't say "run away from whole world". This world needs your help, there is always a solution for any problem.
Reply By Mohit Chauhan:
The Reply:
Yes, I totally agree. File a writ petition in the High Court and do not be discouraged. I hope everything will work out very soon and that yo

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State-Owned Company in Punjab Liable for GST on Ancillary Services Under Companies Act, 2013: Transfer Fees Included.
Case-Laws
GST
Levy of GST – ancillary service provided by a company duly

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Revenue Department Criticized for Insisting on Cash Payment for IGST Despite Online Payment Being Made.
Case-Laws
GST
Detention of goods – demand of IGST – petitioner paid the amount through the portal – Revenue insists that the petitioner ought to have paid the tax and penalty either through cash or through Demand Draft – That insistence seems to be archaic and out of tune with the very spirit of the GST regime.
TMI Updates – Highlights, quick notes, marquee, annotation, news, aler

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Restaurant Profiteering: Failing to Pass Tax Reductions, Overcharging Customers with Extra GST Violates Legal Standards.
Case-Laws
GST
Profiteering – reduction of rate of tax – The restaurant has failed to pass on both the above benefits to his customers – The amount is inclusive of the extra GST which the Respondent had forced the customers to pay due to wrong increase in his basic prices otherwise the prices to be paid by them should have further got reduced by the amount of the GST i

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ADJUSTMENT OF GST PAID IN WRONG HEAD
By: – DR.MARIAPPAN GOVINDARAJAN
Goods and Services Tax – GST
Dated:- 22-11-2018

In payment of tax it is usual to pay the tax in the wrong head. The service tax provisions in such scenario allow the assessee to get the refund of tax paid in the wrong head but the assessee is to pay tax in the correct head. There was no self adjustment of tax paid in the wrong head to the correct head or by the Department. The said problem also is available in GST provisions.
In 'S. Saji v. The Commissioner, SGST and others' – 2018 (11) TMI 954 – Kerala High Court, the petitioner purchased certain goods from Tamil Nadu. While in transit of the said goods to Kerala the Authorities retained the goods and issued the demand of tax to the petitioners. The consignor of the petitioners paid the tax under SGST along with the penalty based on the directions of the Authority. The petitioner showed to the Authorities the receipt as evidence of tax and penalty. T

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e tax paid mistakenly under one head instead of another.
* Rule 4 speaks of adjustment.
* Where the amount of refund is completely adjusted against any outstanding demand under the Act, an order giving details of the adjustment is to be issued in Part A of FORM GST RFD-07.
* The petitioner's counsel lays stress on this process of adjustment and asserts that the amount remitted under one head can be adjusted under another head, for the demand can be any amount under the Act.
The High Court found no difficulty for the respondent officials to allow the petitioner's request and get the amount transferred from the head 'SGST' to 'IGST'. It may, as the Government Pleader has contended, take some time, but it is inequitable for the authorities to let the petitioner suffer on that count. The High Court directed the Revenue the 2nd respondent to release the goods forthwith along with the vehicle and, then, ensure that the tax and penalty already stood remitted under

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terest on the amount of central tax and State tax or, as the case may be, the central tax and the Union territory tax payable.
Section 77(1) provides the situation in which the assessee paid the tax the CGST and SGST or CGST and UTGST on the hope that it is an intra-State supply. But the said supply is later held to be inter-State supply which attracts the payment of IGST. Here the payment of tax in the wrong head is on the genuine hope that it is an intra-State supply. In such cases the service tax paid as SGST shall be refunded to the assessee in such manner and subject to such conditions as may be prescribed. But the assessee is to pay IGST.
Section 77(2) provides the situation which is reverse to section 77(1). In this situation the assessee considered the transaction as inter-State supply and paid integrated tax but subsequently it is held as intra-State supply which attracts the payment of CGST and SGST. In this case also there is no adjustment of tax from one head to another.

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giving details of the adjustment shall be issued in Part A of FORM GST RFD-07. This Rule may be wrongly quoted as Rule 4(1) of GST Refund Rules, 2017.
Rule 92 (1) authorizes the Revenue to adjust the tax, if any, outstanding, against the refund payable to the assessee. It does not amount to adjustment of tax paid in the wrong head to the correct head.
However the judgment of the High Court is a welcome one since it is beneficial to the assessees. The GST Council is also to consider to make rule on the adjustment of tax paid in the wrong head to the correct head in line with the judgment of the High Court, Kerala.
Reply By Durga Prasad as =
Dear Sir,
as sec 77(1) doesn't specify whether interest to be paid or not on such Liability unlike sec 77(2) where it clearly mentions that "without payment of interest", so what should we imply from that ? shall we needs to pay interest on the same or not ?
Thanking you sir.
Dated: 24-6-2019
Reply By kollengode venkitaraman a

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DECODING GST ANNUAL RETURN -GSTR-9
By: – Chitresh Gupta
Goods and Services Tax – GST
Dated:- 22-11-2018

The Goods & Services Tax has been implemented from July 1, 2017. It has brought about a paradigm shift in the methodology of levy and collection of taxes.
GST is a transaction based Indirect tax where returns are filed periodically. It may be monthly or quarterly depending on the type of assessee or type of Return. The concept of Annual return in transaction-based tax is not new. It was prevalent in Central statutes like Excise Act in the form ER-4, 5 & 7. In  Service Tax also,annual return was proposed vide notification no. 19/2016-ST dated 01.03.2016, however on account of implementation of GST, the format of the annual return was not notified. The annual return was also prevalent in various State based VAT Acts.  This required assessee to consolidate the information relating to Sale, Purchase including Input Tax Credit claimed in return and file the

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year.
Type of Return
Assessee liable to file Annual Return
GSTR 9
Filed by the regular taxpayers filing GSTR 1, GSTR 2, GSTR 3.
GSTR 9A
Filed by the persons registered under composition scheme under GST.
GSTR-9B
Filed by the e-commerce operators who have filed GSTR 8
GSTR-9C
Reconciliation Statement duly certified by CA or ICWA to be filed by the taxpayers, whose annual turnover exceeds Rs  2 crores during the financial year. This needs to be filed along with annual return and audited financial statement.
Implication for Delayed/ Non Filing of Annual Return
As per proviso to section 47(2), any registered person who fails to furnish the return required under section 44 [annual return] by the due date shall be liable to pay a late fee of one hundred rupees for every day during which such failure continues subject to a maximum of an amount calculated at a quarter percent of his turnover in the State or Union territory. The la

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s earlier
VI
Other Information
PART I: BASIC DETAILS
Part I seeks to capture the basic details of the Registered Person. The details to be provided are as under;
1
Financial Year
2
GSTIN
3A
Legal Name
3B
Trade Name (if any)
The Financial year will be 2017-18. However, since GST has been implemented from July 01,2017, the data in the Annual Return will relate to period of July 2017 to March 2018. The GSTIN, Legal Name and Trade name as appearing in GST REG-06 is to be mentioned.
It may be noted that Annual return need to be filed for each GSTIN separately. Thus, if a multi-locational entity has 20 GSTIN, then 20 separate Annual return need to be filed. In case an entity has more than one GSTIN in the same state either due to separate business vertical or SEZ unit etc, separate annual return shall be filed.
PART II: DETAILS OF OUTWARD AND INWARD SUPPLIES DECLARED DURING THE FINANCIAL YEAR
This part specifically provides the consolidated view of Outward Supplies made by Re

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on which tax is to be paid on reverse charge basis
H
Sub-total (A to G above)
I
Credit Notes issued in respect of transactions specified in (B) to (E) above (-)
J
Debit Notes issued in respect of transactions specified in (B) to (E) above (+)
K
Supplies / tax declared through Amendments (+)
L
Supplies / tax reduced through Amendments (-)
M
Sub-total (I to L above)
N
Supplies and advances on which tax is to be paid (H + M) above
An important point to note here is that GSTR-9 will contain only the data as declared in already filed returns by registered person. This is in contrast with the Annual return as filed under VAT regimes where the modification if any in the return was carried out in Annual return. The same option is not available in GSTR-9.
Another point for discussion is that at the time of preparation of GSTR 9, whether the details required to be reported at Part 4 should be:
1. Restricted to details reported in the GSTR 1 for the period July 2017 to March 201

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n which tax is not liable to be paid in Table 5.  These include;
A
Zero rated supply (Export) without payment of tax
B
Supply to SEZs without payment of tax
C
Supplies on which tax is to be paid by the recipient on reverse charge basis
D
Exempted
E
Nil Rated
F
Non-GST supply
G
Sub-total (A to F above)
H
Credit Notes issued in respect of transactions specified in A to F above (-)
I
Debit Notes issued in respect of transactions specified in A to F above (+)
J
Supplies declared through Amendments (+)
K
Supplies reduced through Amendments (-)
L
Sub-Total (H to K above)
M
Turnover on which tax is not to be paid  (G + L above)
N
Total Turnover (including advances) (4N + 5M – 4G above)
It may be noted that Debit notes and credit notes which are in relation to these supplies should be captured only if the suitable effect of GST is provided in them. Any commercial/accounting credit or debit notes which do not contain the charge of GST should not be adjuste

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m registered persons liable to reverse charge (other than B above) on which tax is paid and ITC availed
Inputs
Capital Goods
Input Services
E
Import of goods (including supplies from SEZs)
Inputs
Capital Goods
F
Import of services (excluding inward supplies from SEZs)
G
Input Tax credit received from ISD
H
Amount of ITC reclaimed (other than B above) under the provisions of the Act
I
Sub-total (B to H above)
J
Difference (I – A above)
K
Transition Credit through TRAN-I (including revisions if any)
L
Transition Credit through TRAN-II
M
Any other ITC availed but not specified above
N
Sub-total (K to M  above)
O
Total ITC availed (I +  N above)
The above table specifically provides reconciliation of total credit as availed under GSTR-3B with various sources of ITC like Inward supplies from Registered person, Unregistered person, Imports, ISD etc, We also need to disclose the transition credit as filed under TRAN-I & TRAN-II.
The practical issue in co

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equires the details of ITC which is declared as Ineligible or reversed on account of Rule 37, 39, 42 & 43
Rule
Description
37
Reversal of input tax credit in the case of non-payment of consideration
39
Reversal of Excess Credit by  Input Service Distributor
42
Reversal of ITC in respect of inputs or input services  on account of Exempt & Non Taxable supply
43
Reversal of ITC in respect of Capital Goods on account of Exempt & Non- Taxable supply
The details required under Table 7 are as under;
A
Reversal of ITC as per Rule 37
B
Reversal of ITC as per Rule 39
C
Reversal of ITC as per Rule 42
D
Reversal of ITC as per Rule 43
E
Ineligible ITC as per section 17(5)
F
Reversal of TRAN-I credit
G
Reversal of TRAN-II credit
H
Other reversals (pl. specify)
I
Total ITC Reversed (A to H above)
J
Net ITC Available for Utilization (6O – 7I)
In respect of Rule 37, where ITC is required to be reversed on account of  non -payment of consideration within 18

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2018-19
Table 12
ITC Reversed by mistake and  also re-availed that ITC in 2018-19
ITC Reversed in Table 12 and re-availed ITC in Table 13
Table 8 gives a bird eye view presentation of GSTR-2A reconciliation with ITC availed. It also computes the total ITC which will be lapsed in the current financial year. Following details are required in Table 8;
A
ITC as per GSTR-2A (Table 3 & 5 thereof)
B
ITC as per sum total of 6(B) and 6(H) above
C
ITC on inward supplies (other than imports and inward supplies liable to reverse charge but includes services received from SEZs) received during 2017-18 but availed during April to September, 2018
D
Difference [A-(B+C)]
E
ITC available but not availed (out of D)
F
ITC available but ineligible (out of D)
G
IGST paid on import of goods (including supplies from SEZ)
H
IGST credit availed on import of goods (as per 6(E) above)
I
Difference (G-H)
J
ITC available but not availed on import of goods (Equal to I)
K
Total ITC to

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g credit. Hence, it is stressed that working sheets must be prepared on the basis of ledger accounts/ invoice to determine and find out the exact cause of difference for initiation of remedial action either on the part of registered person or on part of suppliers of registered person.
ITC which is unavailed in GSTR-3B either on account it is ineligible or even though it was available but due to mistake, it was not claimed, it will get lapsed. Only the ITC available and not availed coming from 8E, 8F and 8J has been directed to be lapsed. ITC on reverse charge including ITC on import of service is not being reported in Table 8 and hence not being lapsed under Table 8. Merely because the said credits are not being subject to reporting purposes in Table 8 does not mean that the said credit would not lapse, if the said credit is not availed within the timelines set out in section 16(4) of CGST Act,2017.
PART IV: DETAILS OF TAX PAID AS DECLARED IN RETURNS FILED DURING THE FINANCIAL YEAR

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;               –  
 
Central Tax
                        –  
                        –  
                        –  
 
                        –  
 
State/UT Tax
                        –  
            &nb

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         –  
                        –  
 
 
 
 
Late fee
                        –  
                        –  
 
 
 
 
Penalty
                        –  
                        –  
 
 
 
 
Other
     &n

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ar
Information required in this clause is of 'tax payable' and 'tax paid' (by cash or credit). Reference is given to Table 6.1 of GSTR 3B to collect information and include it here. Table 6.1 of GSTR 3B also contains 'tax payable' and 'tax paid'. It is opined that 'actual tax paid' alone must be obtained from that Table and reported in this clause. As regards 'tax payable', the same must be in alignment with taxable turnover in Sl.No.4, particular 4M of GSTR 9. And if 'tax payable' were to be reproduced from GSTR 3B, then there would mere repetition of information without any occasion to rectify later in GSTR 9C.
Accordingly, where taxable turnover reported in GSTR 1 and GSTR 3B are in agreement with each other, there would be no 'new' tax liability being identified for the first time in GSTR 9. However, where they are not in agreement, which is often the case, taxable turnover reported in GSTR 1 and that on which tax is actually discharged through GSTR 3B may not be in agreement. It

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eturns for the months of April 2018 to September 2018
* Amendments to invoices related to 2017-18 and reported (with errors) in the GSTR 1 for 2017-18 but now reported (duly rectified) in the returns for the months of April 2018 to September 2018
* ITC availed & reversed pertaining to FY 2017-18 but reported in GSTR 3B of April 2018 to September 2018
It may be noted that Debit notes / Credit notes dated after April 1,2018 will not be reported in GSTR 9 of FY 2017-18 because the circumstances necessitating credit note and debit note would have arisen only in 2018-19.
PART VI: OTHER INFORMATION
Part VI requires following information to be provided by Registered person
15
Particulars of Demands and Refunds during FY 2017-18
16
Information on supplies received from composition taxpayers, deemed supply under section 143 and goods sent on approval basis
17
HSN Wise Summary of outward supplies
18
HSN Wise Summary of Inward supplies
19
Late fee payable and paid
Table 15 requi

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ssed in GST RFD-07 by way of adjustment of the amount of refund against the outstanding demand under the GST, then, the demand of tax before adjustment against refund of tax will form part of reporting under under the table 15E, demand of taxes.
Table 16 of GSTR 9 requires details of supplies received from composition tax payers supplies (inputs and capital goods) received from principal by the recipient (job-worker) and not returned within the time specified under section of the CGST Act,2017 and supplies received on approval basis from principal and returned to supplier within 180 days of supply.
For the financial year 2017-18, a summary of inward and outward supplies effected / made against a particular HSN code is to be reported in this Table17 & Table 18 respectively. It is optional to mention HSN code for taxpayers having annual turnover up to Rs. 1.50 crores. It will be mandatory to report HSN code at two digits level for taxpayers having annual turnover in the preceding year

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ation of ITC with GSTR-2A specifically in cases where ITC claimed in returns is higher than ITC as reflected in GSTR-2A.
* Collation of data with respect to HSN wise Inward & Outward Supplies made during the year.
It is recommended that the government may appreciate that above issues and relook the format of Annual Return to be make it more compliance friendly. It is also recommended that all the registered person and also the professionals may start the work on Annual Return so that everybody may get sufficient time to complete the same and take care of various intricacies involved in filing the same.
Reply By ARUN JAIN as =
Very helpful and detailed article
Dated: 24-11-2018
Reply By Jitender Ranka as =
NOTE FOR OPINION ON ITEMS NOT SHOWN IN GSTR1 BUT ADJUSTED IN GSTR3B
There are various issues in current GST laws and one issues arises from a deviation from earlier GST provision in treating general discounts in trade (which are related to many invoices) as sales promotion i

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ght on how to treat it in annual return:
* 1. Can the distributor show the input GST without adjusting GST in credit notes? If done so it results in sizeable refund. 2. Will GST authorities refund big amount immediately? If agreed to do so company is going to debit distributor immediately.
* Can distributor show the annual return as it is that is input GST after adjusting GST in credit notes(which he has been doing in 3B) so there would not be any refund. Then can Auditor under GST audit show the Input GST detailed computation by showing the input GST on purchases and input GST reversed on account of credit notes of company and giving all details of credit notes for period from 1st July 17 to 31st March 18. Can this become basis for FMCG company to claim out put reversal which they can show in their audit report as well.
NOTE FOR OPINION ON ITEMS NOT SHOWN IN GSTR1 BUT ADJUSTED IN GSTR3B
There are various issues in current GST laws and one issues arises from a deviation from earl

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of credit notes of company(supplier) not coming through GSTR1 return and only adjusted in 3B.
Now the opinion is sought on how to treat it in annual return:
* 1. Can the distributor show the input GST without adjusting GST in credit notes? If done so it results in sizeable refund. 2. Will GST authorities refund big amount immediately? If agreed to do so company is going to debit distributor immediately.
* Can distributor show the annual return as it is that is input GST after adjusting GST in credit notes(which he has been doing in 3B) so there would not be any refund. Then can Auditor under GST audit show the Input GST detailed computation by showing the input GST on purchases and input GST reversed on account of credit notes of company and giving all details of credit notes for period from 1st July 17 to 31st March 18. Can this become basis for FMCG company to claim out put reversal which they can show in their audit report as well?
Dated: 22-12-2018
Scholarly articles fo

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Seeks to provide taxpayers whose registration has been cancelled on or before the 30th September, 2018 time to furnish final return in FORM GSTR-10 till 31st December, 2018
1054/2018/10(120)/XXVII(8)/2018/CT-58 Dated:- 22-11-2018 Uttarakhand SGST
GST – States
Uttarakhand SGST
Uttarakhand SGST
Government of Uttarakhand
Finance Section-8
NOTIFICATION
November 22, 2018
No. 1054/2018/10(120)/XXVII(8)/2018/CT-58 – WHEREAS the State Government is satisfied that it is expedient so to

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In Re: Esprit India Private Limited, Gurugram
GST
2019 (2) TMI 1005 – APPELLATE AUTHORITY FOR ADVANCE RULING, HARYANA – 2019 (22) G. S. T. L. 144 (App. A. A. R. – GST)
APPELLATE AUTHORITY FOR ADVANCE RULING, HARYANA – AAAR
Dated:- 22-11-2018
HAAAR/2018-19/02
GST
AMIT KUMAR AGRAWAL AND MANORANJAN KAUR VIRK, MEMBER
Appellant Represented by: Sh. Nitin Agrawal, Power of Attorney Holder, M/s. Esprit India Pvt. Ltd.
Department Represented by: Sh. Amreshwar Gautam, Asstt. Commissioner Sh. S.K. Saini, Jt. Director(Legal)
Order under Section 101 of the Central Goods and Services Tax Act, 2017/the Haryana Goods and Services Tax Act, 2017.
The present appeal has been filed under Section 100 (1) of the Central Goods and Services Tax Act, 2017/the Haryana Goods and Services Tax Act, 2017 [hereinafter referred to as “the CGST Act and HGST Act respectively”] by M/s. Esprit India Private Limited [hereinafter referred to as the “Appellant”] against the Advance Ruling No. HAR/

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s entered into an agreement dated 18.07.2016 with Esprit India Pvt. Ltd. in terms of which Esprit India Pvt. Ltd. has undertaken to provide various sourcing support services to EDCFE in relation to performance of the obligations under EDCFE's contract with Esprit Germany.
3. Under the agreement, Esprit India Pvt. Ltd. is appointed by EDCFE to provide services to EDCFE in relation to goods and merchandise including wearing apparel, shoes & accessories and fabric. A brief description of the functions/responsibilities of EDCFE and Esprit Germany and Esprit India Pvt. Ltd. is listed below:
Sr.No.
Functions/Activities
Role of EDCFE/Esprit Germany
Role of Esprit India
1.
Market research
No role
Esprit India conducts market research to understand market dynamics, gather pricing information from different suppliers and advise on the best available combination of price, quality and delivery of the goods for Esprit Germany.
2.
Purchase of goods and trademark protection
Esprit Germany

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in respect of goods sourced from India
Esprit India only communicates the terms and conditions to the extent of instructions and requirements received from Esprit Germany (through EDCFE) but is not involved in negotiation.
5.
Inspection and quality control
Esprit Germany and EDCFE frame guidelines for quality control procedures to be adopted during manufacturing, stock keeping in warehouse and transportation.  
Esprit India based on the guidelines received from EDCFE conducts quality checks at various stages of production. It also checks whether the goods meet the specification, quality, delivery time, and other requirement of Esprit Germany.
6.
Logistics
Products are dispatched by the suppliers to Esprit Germany.
Esprit India makes logistics arrangement for the goods in accordance with the instructions of Esprit Germany received through EDCFE and assure that all documents related to shipment of the goods Esprit Germany are proper.
7.
Contract conclusion
No role
Espri

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different categories.
C. The Ld. AAR had arbitrarily and erroneously held that the questions asked by the Appellant were out of the scope of the Section 97(2) of Central Goods and Services Tax Act 2017 (CGST Act) /Haryana Goods and Services Tax Act 2017 (HGST Act) and the questions could not be taken up by the AAR due to lack of jurisdiction.
D. Services provided by the Appellant were not 'intermediary' services.
* The Appellant in no manner 'arranged' or 'facilitated' sale of Goods from vendors in India to Esprit Germany
* The Appellant does not qualify as an 'agent' or a 'broker' for EDCFE
E. The services performed by the Appellant are in nature of “support services”
F. Services in the present case are indeed exported. Services provided by the Appellant would qualify as 'exports' in terms of Section 2 (6) of Integrated Goods and Services Tax Act 2017 (the IGST Act).
G. The remuneration of the Appellant for support services to EDCFE is independent of purchase of goods by Esp

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ant pleaded that his services fall in the ambit of export services treating the same as zero rated supply of services.
In support of his arguments, Sh. Nitin Agrawal has referred to following judgments of the Hon'ble Courts and the decisions of the Authorities under the Goods and Services Tax Act:-
1. CST v. Ernst & Young Pvt. Ltd., 2014 (34) S.T.R. 3 (Del.) = 2014 (2) TMI 1133 – DELHI HIGH COURT on 25-February 2014.
2. Commissioner of Service Tax, New Delhi v. Menon Associates (2015 77 VST 168 Del.) = 2014 (11) TMI 970 – DELHI HIGH COURT
3. Commissioner of Service Tax, New Delhi v. Menon Associates (2015 77 VST 168 Del.) = 2014 (11) TMI 970 – DELHI HIGH COURT
4. Sunrise Intermediary services-case law.
5. ARA ruling Global Reach Education [2018-VIL-06-AAR] WB 2017-18-02 (West Bengal) = 2018 (4) TMI 808 – AUTHORITY FOR ADVANCE RULING, WEST BENGAL
6. AAR ruling Gogte Infrastructure Development Corporation Ltd. (2018-VIL-30-AAR-02) Karnataka. = 2018 (5) TMI 759 – AUTHORITY FOR ADVA

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of time and value of supply of goods or services or both;
(d) admissibility of input tax credit of tax paid or deemed to have been paid;
(e) determination of the liability to pay tax on any goods or services or both;
(f) whether applicant is required to be registered;
(g) whether any particular thing done by the applicant with respect to any goods or services or both amounts to or results in a supply of goods or services or both, within the meaning of that term.”
To controvert the cited authorities of other States, it is pleaded by the department that the same are not binding on the appellant and in support of this argument, the provisions of Section 103 have been refereed to, which read as under:-
“103. (1) The advance ruling pronounced by the Authority or the Appellate Authority under this Chapter shall be binding only-
(a) on the applicant who had sought it in respect of any matter referred to in sub-section (2) of section 97 for advance ruling.
(b) on the concerned

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ng questions :-
(i) Taxability of above stated services provided by Esprit India to its associate concern in Hong Kong EDCFE under GST regime.
(ii) Whether the above stated services provided by Esprit India are covered under Export of Services having Zero rated taxability.
(iii) Whether Esprit India is eligible for seeking refund of GST for the taxes paid on input services or goods or both.
The Id. AAR has answered all the Questions raised, in term of relevant provisions of the GST Act and by giving detailed reasons. The plea of the appellant, that the AAR has given SAC & description alongwith tax rate which was not asked for, does not hold water because AAR has clarified each and every aspect raised in the application for Advance Ruling by giving self-explanatory findings. Thus the arguments raised by the appellant are untenable.
The case laws cited by the appellant are distinguishable as the facts and circumstances of the present case are different. The appellant has himself adm

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Commissioner of GST & Central Excise Puducherry Versus M/s. Magic Hour Films India Pvt. Ltd.
Service Tax
2019 (2) TMI 211 – CESTAT CHENNAI – TMI
CESTAT CHENNAI – AT
Dated:- 22-11-2018
Appeal No. ST/99/2012 – Final Order No. 43016/2018
Service Tax
Ms. Sulekha Beevi C.S., Member (Judicial) And Shri Madhu Mohan Damodhar, Member (Technical)
Shri K. Veerabhadra Reddy, ADC (AR) for the Appellant
None for the Respondent
ORDER
Per Bench
Brief facts are that the respondents are engaged in providing taxable services like advertising agency service, photography service etc. and are registered with the department. Based on intelligence that the respondents have delayed in paying service tax, investigations were conducted.

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here was much delay in paying the service tax and therefore the Commissioner ought not have to waived the penalties.
3. None appeared for the respondent though repeated notices were issued to them.
4. After hearing the ld. AR for the department and after perusal of the records, the appeal is taken up for disposal.
5. It is seen that the respondent has paid up the entire service tax along with interest of Rs. 4,52,248/- under GAR challans dated 20.3.2011, 23.3.2011 and 28.3.2011. The show cause notice is issued much later that is on 21.6.2011. It is seen that the respondent has discharged the entire service tax liability along with interest before issuance of the show cause notice. As per sub-section (3) of Section 73, as it stood during

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M/s. Aviram Knitters Versus Commissioner of GST & Central Excise Coimbatore
Service Tax
2019 (2) TMI 92 – CESTAT CHENNAI – TMI
CESTAT CHENNAI – AT
Dated:- 22-11-2018
Appeal No. ST/126/2011 – Final Order No. 43021/2018
Service Tax
Ms. Sulekha Beevi C.S., Member (Judicial) And Shri Madhu Mohan Damodhar, Member (Technical)
Shri M.N. Bharathi, Advocate for the Appellant
Ms. T. Usha Devi, DC (AR) for the Respondent
ORDER
Per Bench
Brief facts are that the appellant had engaged overseas commission agents for procuring orders for their products namely 'Hosiery Garments'. They were paying commission to such foreign agents. On investigation, it was found that they had not paid the service tax on the commission paid to f

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Tribunal in the case of Texyard International Vs. Commissioner of Central Excise, Trichy – 2015 (40) STR 332 has held that levy of service tax cannot sustain in view of the exemption as per the notification. He also relied upon the decision in the case of M/s. KPR Cotton Mills Pvt. Ltd. Vs. Commissioner of Central Excise – 2018-TIOL-433-CESTAT-MAD.
3. The ld. AR Ms. T. Usha Devi supported the findings in the impugned order.
4. Heard both sides.
5. The similar issue as to the demand of service tax for services of overseas commission agents for procurement of orders was analyzed by the Tribunal in the case of Texyard International (supra). The Tribunal in the said case observed that the assessee is eligible for exemption of the Notificati

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M/s. P.S. Vinod Versus Commissioner of GST & Central Excise Chennai
Service Tax
2019 (2) TMI 91 – CESTAT CHENNAI – 2019 (24) G. S. T. L. 50 (Tri. – Chennai)
CESTAT CHENNAI – AT
Dated:- 22-11-2018
Appeal No. ST/124/2011 – Final Order No. 43020/2018
Service Tax
Ms. Sulekha Beevi C.S., Member (Judicial) And Shri Madhu Mohan Damodhar, Member (Technical)
Shri J. Shankarraman, Advocate for the Appellant
Ms. T. Usha Devi, DC (AR) for the Respondent
ORDER
Per Bench
Brief facts are that during internal audit of the Audit Section, it was noticed that the appellant who is a proprietor of the concern has been rendering photography service as an individual professional photographer. As per Finance Act, 1994, the photography service was brought within the service tax net with effect from 16.7.2001 and the definition of the said services included any professional photographer or any person engaged in the business of rendering service relating to photography. The departme

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photography service was expanded with effect from 1.5.2006 covering any person providing photography service. Prior to 1.5.2006 only professional photographer or a commercial concern providing such service is covered under the definition of photography studio or agency. The appellant being a person who has only the skill of taking photography cannot be described as a professional photographer or a commercial concern. He used to get orders from various companies and also make advertisement films for such work. He picturises the events for which he gets paid by way of cheque. Since the appellant has no studio and not being an agency, there is no liability to pay service tax. The ld. counsel also argued on the ground of penalty. He submitted that the appellant since was not having any studio and was doing the photography on his own, was under the impression that he is not liable to pay service tax and therefore had not discharged any service tax. It was his bonafide belief that he was no

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e. For better appreciation of the issue, relevant sections are reproduced as under:-
“Section 65(79) of the Finance Act, 1994
Photography Studio or Agency means any professional photographer or a commercial concern engaged in the business of rendering services relating to Photography.
Section 65(105)(zb)
The taxable service is a service provided or to be provided to a customer by a photography studio or agency in relation to photography in any manner
Section 65(78)
Photography includes still photography, motion picture photography, laser photography, aerial photography or fluorescent photograph”
6. As seen from the provisions of law extracted above, photography studio or agency means any professional photographer or a commercial concern engaged in the business of rendering service relating to photography. Undisputedly, the appellant is engaged in doing advertisement film and such other activities. He also renders service in the cinematographic field. A person who renders s

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erated with the department and has furnished all details. No unaccounted transactions were unearthed. On these facts, the penalty imposed under section 78 is unwarranted. Taking into consideration these facts and that the appellant had entertained a reasonable view as to whether he would fall within the definition of photography service as he was not having any studio for rendering taxable service and taking into consideration the bonafide belief of the appellant, we are of the considered view that the penalty imposed under section 78 is unwarranted and is set aside by invoking section 80 of the Finance Act, as it stood during the relevant period.
8. From the above discussions, the impugned order is modified to the extent of setting aside the penalty imposed under section 78 only without interfering with the rest of the order. The appeal is partly allowed in the above terms, with consequential relief, if any.
(Operative portion of the order was pronounced in open court)
Case laws

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M/s. Yes & Yes Hi-Tech Promoters India P. Ltd. Versus Commissioner of GST & Central Excise Salem
Service Tax
2019 (2) TMI 90 – CESTAT CHENNAI – TMI
CESTAT CHENNAI – AT
Dated:- 22-11-2018
Appeal No. ST/127/2011 – Final Order No. 43017/2018
Service Tax
Ms. Sulekha Beevi C.S., Member (Judicial) And Shri Madhu Mohan Damodhar, Member (Technical)
Ms. Kanthi Visalakshi, Advocate for the Appellant
Ms. T. Usha Devi, DC (AR) for the Respondent
ORDER
Per Bench
Brief facts are that the appellants are rendering services under the category of 'Commercial and Industrial Construction Service', Construction of Residential Complex Service', 'Works Contract Service and services under the category of Transport of Goods by Road. Show cause notice was issued to the appellant on the ground that they have not furnished the relevant records to the department for verification of the correctness of the service tax paid by them for the period September 2004 to September 2008. Short p

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Promoters Ltd. Vs. CCE – 2018-TIOL-2867-CESTAT, Chennai. She also submitted that the appellants are not contesting the demand under Goods Transport Agency Service.
4. The ld. AR Ms. T. Usha Devi supported the findings in the impugned order.
5. After hearing both sides, it is brought to light that the period involved in the present case is September 2004 to September 2008. The demand has been raised in the show cause notice under construction of complex services. The contracts entered between the appellant and the service recipient is a composite contract which involves both supply of materials as well as rendering of service. The Tribunal in the case of Real Value Promoters Ltd. (supra) had occasion to analyse the issue regarding demand of service tax under construction of residential complex services, commercial or industrial construction service and construction of complex service. The Tribunal has held that prior to 1.6.2007, levy of service tax can be under the above categories o

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in 2007:-
“State Governments levy a tax on the transfer of property in goods involved in the execution of a works contract. The value of services in a works contract should attract service tax. Hence, I propose to an optional composition scheme under which service tax will be levied at only 2 per cent of the total value of the words contract”.
7.10 The issue was analyzed by the Hon'ble Apex Court in Larsen & Toubro case (supra) and held that there can be no levy of service tax on composite contracts (involving both service and supply of goods) prior to 1.6.2007. This read together with the budget speech as above would lead to the strong conclusion that composite contracts were brought within the ambit of levy of service tax only with effect from 1.6.2007 by introduction of Section 65(105)(zzzza) i.e. Works Contract Services. As pointed out by the ld. counsels for appellants, there is no change in the definition of CICS/CCS/RCS after 1.6.2007. Therefore only those contracts which w

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He invited our attention to CBEC's Circular 128/10/2010 dated 24.8.2010 which is reproduced as under:-
“The matter has been examined. As regards the classification, with effect from 1-6-2007 when the new service 'Works Contract service' was made effective, classification of aforesaid services would undergo a change in case of long term contracts even though part of the service was classified under the respective taxable service prior to 1-6-2007. This is because 'works contract' describes the nature of the activity more specifically and, therefore, as per the provisions of Section 65A of the Finance Act, 1994, it would be the appropriate classification for the part of the service provided after that date.”
7.12 Thus, for example, while construction of a new residential complex as a service simpliciter would find a place under section 65(105)(30b) of the Act, the same activity as a composite works contract will require to be brought under section 65(105)(zzzza) Explanation (c). For

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oning of wrong provisions of law as submitted by the Revenue. Apparently, the tax liability of composite works contract is to be considered under works contract services only as per legal position settled by the Hon'ble Apex Court in M/s L&T Limited. Even in the appeal, the Revenue submitted that the respondent were engaged in construction services liable to tax under tax entry Section 65(105) (xxq). The grievance of the Revenue is with reference to commercial nature of the construction undertaken by the respondent and not on the correct classification of taxable activity.”
b. In the case of Skyway Infra Projects Pvt. Ltd. Vs. Commissioner of Service Tax, Mumbai – 2018-TIOL-360-CESTAT-MUM, in respect of identical issue for the period from 2005 to 2012, the Tribunal in para 7 has held as under:-
“7. On careful consideration of the submissions made by both the sides, we find that the issue falls for consideration is whether the services rendered by the appellant in respect of 52

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, their Lordships have very categorically laid down the law that the works contract cannot be vivisected for the confirmation of demand under various other services. On this ground itself, the entire demand confirmed by the adjudicating authority is liable to be set aside and we do so.”
c. In the case of URC Construction (P) Ltd. Vs. Commissioner of Central Excise, Salem – 2017 (50) STR 147, the Tribunal in paragraphs 9, 10 and 11 has held as under:-
“9. The Hon'ble Supreme Court in re Larsen & Toubro & Ors. has decided thus
'24. A close look at the Finance Act, 1994 would show that the five taxable services referred to in the charging Section 65(105) would refer only to service contracts simpliciter and not to composite works contracts. This is clear from the very language of Section 65(105) which defines “taxable service” as “any service provided”. All the services referred to in the said sub-clauses are service contracts simpliciter without any other element in them, such as f

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service', no tax is liable on construction contracts executed prior to 1st June, 2007.
11. Insofar as demand for subsequent period till 30th September, 2008 is concerned, it is seen that neither of the two show cause notices adduce to leviability of tax for rendering 'works contract service'. On the contrary, the submission of the appellant that they had been providing 'works contract service' had been rejected by the adjudicating authority. Therefore, even as the services rendered by them are taxable for the period from 1st June, 2007 to 30th September, 2008 the narrow confines of the show cause notices do not permit confirmation of demand of tax on any service other than 'commercial or industrial construction service'. It is already established in the aforesaid judgment of the Hon'ble Supreme Court that the entry under Section 65(105)(zzd) is liable to be invoked only for construction simpliciter. Therefore, there is no scope for vivisection to isolate the service component of the

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de. So ordered
5.3 For the period 01.04.2008 to 30.09.2008, the demand confirmed is Rs. 26,88,611/-. We note that the appellant has not contested the liability under works contract for this period. The only argument brought forth by the Ld. Counsel is that they have discharged an amount of around Rs. 82 lakhs under this category after the visit of the departmental officers and therefore an amount of Rs. 36,88,611/- demanded in the impugned order should be considered as having been discharged. We find merit in his argument and hence the demand of Rs. 26,88,611/- under works contract service for the period 01.04.2008 to 30.09.2008 is required to be considered as having been paid, albeit subsequent to the visit of the officers. However, the interest liability if any that arise on this amount if not paid already will have to be discharged by the appellants. So ordered.”
8. In the light of the discussions, findings and conclusions above and in particular, relying on the ratios of the ca

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ction 65(105)(zzzza) ibid.
d. The show cause notices in all these cases prior to 1.6.2007 and subsequent to that date for the periods in dispute, proposing service tax liability on the impugned services involving composite works contract, under 'Commercial or Industrial Construction Service' or 'Construction of Complex' Service, cannot therefore sustain. In respect of any contract which is a composite contract, service tax cannot be demanded under CICS / CCS for the periods also after 1.6.2007 for the periods in dispute in these appeals. For this very reason, the proceedings in all these appeals cannot sustain.”
6. Following the above decision, we are of the considered opinion that the demand of service tax under commercial or industrial construction service (residential complex) cannot sustain after the period 1.6.2007. The levy of service tax prior to 1.6.2007 cannot also sustain by application of the decision of the Hon'ble Supreme Court in the case of Larsen & Toubro Ltd. – 201

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M/s. Priya Constructions Versus Commissioner of GST & Central Excise Chennai South Commissionerate
Service Tax
2019 (2) TMI 89 – CESTAT CHENNAI – TMI
CESTAT CHENNAI – AT
Dated:- 22-11-2018
ST/Misc. /41492/2017 in ST/257/2011 – Final Order No. 43021/2018
Service Tax
Ms. Sulekha Beevi C.S., Member (Judicial) And Shri Madhu Mohan Damodhar, Member (Technical)
Shri S. Venkatachalam, Advocate for the Appellant
Shri L. Nandakumar, AC (AR) for the Respondent
ORDER
Per Bench
Brief facts are that the appellants are rendering services under the category of Construction of Commercial Residential Complex. On intelligence it was found that the assessees are providing taxable service without obtaining service tax registration and without payment of service tax. The department took up investigation and on verification of records, it was noticed that the appellant took up a joint development agreement with M/s. ABU Estates Pvt. Ltd. In terms of the agreement, the land was

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ainable as the activity undertaken by the appellant falls under the category of works contract service involving execution of composite contracts. Therefore, the entire demand of service tax under the category of commercial or industrial construction service is unsustainable. He also submitted that the issue is covered by the decision of the Tribunal in the case of Real Value Promoters Ltd. Vs. CCE – 2018-TIOL-2867-CESTAT, Chennai.
3. The ld. AR Shri L. Nandakumar supported the findings in the impugned order.
4. After hearing both sides, it is brought to light that the period involved in the present case is from 10.9.2004 to 31.10.2008. The demand has been raised in the show cause notice under construction of complex services. The contracts entered between the appellant and the service recipient is a composite contract which involves both supply of materials as well as rendering of service. The Tribunal in the case of Real Value Promoters Ltd. (supra) had occasion to analyse the issu

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construction service, construction of complex service and in addition turnkey projects including EPC projects within the definition of Works Contract Service.
7.9 At this juncture, it is worthwhile to reproduce excerpts from the Union Finance Minister's budget speech in 2007:-
“State Governments levy a tax on the transfer of property in goods involved in the execution of a works contract. The value of services in a works contract should attract service tax. Hence, I propose to an optional composition scheme under which service tax will be levied at only 2 per cent of the total value of the words contract”.
7.10 The issue was analyzed by the Hon'ble Apex Court in Larsen & Toubro case (supra) and held that there can be no levy of service tax on composite contracts (involving both service and supply of goods) prior to 1.6.2007. This read together with the budget speech as above would lead to the strong conclusion that composite contracts were brought within the ambit of levy of ser

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gant' – 'general things do not derogate special things'. The counsel for appellants have submitted that as per Section 65A of the Act ibid, classification of service shall be based on the specific entries and the more specific description of service has to be preferred. He invited our attention to CBEC's Circular 128/10/2010 dated 24.8.2010 which is reproduced as under:-
“The matter has been examined. As regards the classification, with effect from 1-6-2007 when the new service 'Works Contract service' was made effective, classification of aforesaid services would undergo a change in case of long term contracts even though part of the service was classified under the respective taxable service prior to 1-6-2007. This is because 'works contract' describes the nature of the activity more specifically and, therefore, as per the provisions of Section 65A of the Finance Act, 1994, it would be the appropriate classification for the part of the service provided after that date.”
7.12 Thus

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ntion this in the first para itself. However, the proposal for tax demand was specifically made under Commercial or Industrial Construction Service under Section 65 (105) (zzq) of the Finance Act, 1994. In such situation, we note that it cannot be a case of simple mentioning of wrong provisions of law as submitted by the Revenue. Apparently, the tax liability of composite works contract is to be considered under works contract services only as per legal position settled by the Hon'ble Apex Court in M/s L&T Limited. Even in the appeal, the Revenue submitted that the respondent were engaged in construction services liable to tax under tax entry Section 65(105) (xxq). The grievance of the Revenue is with reference to commercial nature of the construction undertaken by the respondent and not on the correct classification of taxable activity.”
b. In the case of Skyway Infra Projects Pvt. Ltd. Vs. Commissioner of Service Tax, Mumbai – 2018-TIOL-360-CESTAT-MUM, in respect of identical i

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the facts that the contracts executed by the appellant are nothing but works contracts, for the period in question, entire case of the Revenue in the show-cause notice stands demolished by the Apex Court in the case of Larsen & Toubro Ltd. (supra). In the said judgment, their Lordships have very categorically laid down the law that the works contract cannot be vivisected for the confirmation of demand under various other services. On this ground itself, the entire demand confirmed by the adjudicating authority is liable to be set aside and we do so.”
c. In the case of URC Construction (P) Ltd. Vs. Commissioner of Central Excise, Salem – 2017 (50) STR 147, the Tribunal in paragraphs 9, 10 and 11 has held as under:-
“9. The Hon'ble Supreme Court in re Larsen & Toubro & Ors. has decided thus
'24. A close look at the Finance Act, 1994 would show that the five taxable services referred to in the charging Section 65(105) would refer only to service contracts simpliciter and not to com

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ntract the value of properly in goods transferred in the execution of a works contract.'
10. In view of this specific decision and the admitted claim of the appellant that they are not providers of 'commercial or industrial construction service' but of 'works contract service', no tax is liable on construction contracts executed prior to 1st June, 2007.
11. Insofar as demand for subsequent period till 30th September, 2008 is concerned, it is seen that neither of the two show cause notices adduce to leviability of tax for rendering 'works contract service'. On the contrary, the submission of the appellant that they had been providing 'works contract service' had been rejected by the adjudicating authority. Therefore, even as the services rendered by them are taxable for the period from 1st June, 2007 to 30th September, 2008 the narrow confines of the show cause notices do not permit confirmation of demand of tax on any service other than 'commercial or industrial construction servic

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not under Works Contract service. The demand confirmed in the impugned order under these categories namely under construction service for the period 10.09.2004 to 16.06.2005 under CICS for the period 16.06.2005 to 30.09.2008 cannot also sustain and are therefore set aside. So ordered
5.3 For the period 01.04.2008 to 30.09.2008, the demand confirmed is Rs. 26,88,611/-. We note that the appellant has not contested the liability under works contract for this period. The only argument brought forth by the Ld. Counsel is that they have discharged an amount of around Rs. 82 lakhs under this category after the visit of the departmental officers and therefore an amount of Rs. 36,88,611/- demanded in the impugned order should be considered as having been discharged. We find merit in his argument and hence the demand of Rs. 26,88,611/- under works contract service for the period 01.04.2008 to 30.09.2008 is required to be considered as having been paid, albeit subsequent to the visit of the off

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iter.
c. For activities of construction of new building or civil structure or new residential complex etc. involving indivisible composite contract, such services will require to be exigible to service tax liabilities under 'Works Contract Service' as defined under section 65(105)(zzzza) ibid.
d. The show cause notices in all these cases prior to 1.6.2007 and subsequent to that date for the periods in dispute, proposing service tax liability on the impugned services involving composite works contract, under 'Commercial or Industrial Construction Service' or 'Construction of Complex' Service, cannot therefore sustain. In respect of any contract which is a composite contract, service tax cannot be demanded under CICS / CCS for the periods also after 1.6.2007 for the periods in dispute in these appeals. For this very reason, the proceedings in all these appeals cannot sustain.”
5. Following the above decision, we are of the considered opinion that the demand of service tax under com

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Commissioner of GST & Central Excise Chennai Versus M/s. The EIMCO KCP Ltd.
Central Excise
2019 (2) TMI 79 – CESTAT CHENNAI – TMI
CESTAT CHENNAI – AT
Dated:- 22-11-2018
Appeal No. E/264/2012 – Final Order No. 43019/2018
Central Excise
Ms. Sulekha Beevi C.S., Member (Judicial) And Shri Madhu Mohan Damodhar, Member (Technical)
Shri L. Nandakumar, AC (AR) for the Appellant
Shri M.N. Bharathi, Advocate for the Respondent
ORDER
Per Bench
Brief facts are that the respondents are engaged in manufacture of filtration equipment falling under CETSH 84212190 of CETA, 1985. On scrutiny of records for the months of December 2007 to May 2008, it was found that they had cleared filtration equipment without payment of duty claiming exemption under Sl. No. 91of Notification No.6/2006-CE dated 1.3.2006 for supply against International Competitive Bidding. As it appeared that the exemption was available only to M/s. VA-Tech Wabag Ltd., as they were the actual bidders and the

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ts of International Competitive Bidding, M/s. VA-Tech Wabag Ltd. has participated in the international competitive bidding and the project authorities M/s. NTPC has issued certificate to M/s. VA Tech Wabag Ltd. The respondent is a sub-contractor as seen from the certificate issued by the project authority and therefore the goods supplied by the respondent would satisfy Condition 19 of the said Notification. The issue is decided in the following cases:-
a. Commissioner of Customs, Mumbai Vs. Rochem Separation Systems Ltd. Ltd. – 2010 (251) ELT 438
b. Commissioner of Central Excise, Puducherry Vs. Caterpillar India Ltd. – 2013 (297) ELT 8 (Mad.) upheld by the Hon'ble Supreme Court in 2016 (335) ELT A27 (SC)
c. Kanta Rubber Pvt. Ltd. Vs. Commissioner of Customs – 2017 (353) ELT 124
d. Toshniwal Industries Pvt. Ltd. Vs. Commissioner of Central Excise, Jaipur – 2017 (5) GSTL 179.
4. Heard both sides.
5. The respondents have supplied the goods for water treatment plant for human consum

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in fact supplied to such power project and the equipments were installed at the project site. What we noticed is that neither the benefits under Notification No. 21/2002-Cus. (Sr. No. 400) nor the exemption under Notification No. 6/2006-C.E. (Sr. No. 91) is subject to any conditions stipulated in Foreign Trade Policy. BHEL as the main contractor could have imported the impugned goods without payment of Customs duty in view of Notification No. 21/2002-Cus. (Sr. No. 400). Notification No. 6/2006-C.E. Sr. No. 91 only makes it possible to procure such goods locally without payment of excise duty if BHEL so desires and BHEL opted for local procurement from the assessee-appellants. So, naturally the assessee-appellants should be eligible for exemption under Notification No. 6/2006-C.E. (Sr. No. 91). Prima facie, the deemed export benefits dealt within para 8.6.1 and 8.6.2 deal with incentive granted by DGFT and not exemption granted by Ministry of Finance and there is no reason to refer to

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In Re: M/s. Madhya Pradesh Pashchim Kshetra Vidyut Vitaran Company Limited
GST
2019 (1) TMI 419 – AUTHORITY FOR ADVANCE RULING, MADHYA PRADESH – 2019 (20) G. S. T. L. 793 (A. A. R. – GST)
AUTHORITY FOR ADVANCE RULING, MADHYA PRADESH – AAR
Dated:- 22-11-2018
Order No. 20/2018 Case No. 15/2018
GST
RAJIV AGRAWAL AND MANOJ KUMAR CHOUBEY MEMBER
Present on behalf of applicant: Shree Shree Anirudh Tiwari, Accounts Officer
PROCEEDINGS
(Under section 98 of Central Goods and Services Tax Act, 2017 and the Madhya Pradesh Goods and Services Tax Act, 2017)
1. The present application has been filed u/s 97 of the Central Goods & Services Tax Act, 2017 and MP Goods & Services Tax Act, 2017 (hereinafter also referred to CGST Act and MPSGT Act respectively) by M/s. Madhya Pradesh Pashchim Kshetra Vidyut Vitaran Company Limited (hereinafter also referred to as applicant), registered under the Goods & Services Tax.
2. The provisions of the CGST Act and MPGST Act are identical,

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istribution of electricity in the area of Indore and Ujjain Commissionerate. Besides, the Applicant company is also performing function of Rural Electrification including distribution of electricity.
3.3 The term 'Government Entity' has been defined vide Notification No.32/2017- Central Tax (Rate) dtd.13.10.2017, as '………. an authority or a board or any other body including a society, trust, corporation (i) set up by an Act of Parliament or State Legislature; or (ii) established by any Government, with 90% or more participation by way of equity or control, to carry out a function entrusted by the Central Government, State Government, Union Territory or a local authority'.
3.4. Further, vide Notification No.02/2018-CT (Rate) dtd.25.01.2018 following amendments have been made in the Notification no. 12/2017-CT (Rate) dtd.28.06.2017 –
(a) Against Serial number 3, in the Entry in Column (3), after the words 'a Governmental Authority' the words 'or a Government Entity&#3

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plicable to the applicant company.
4. QUESTION RAISED BEFORE THE AUTHORITY –
4.1 Applicability of provisions of S.No.3 & 3A of Table oft Notification No. 12/2017 dtd.28.06.2017 as amended from time to time on services supplied to the company (As mentioned in Sr. No. 14 of the Application).
5. RECORD OF PERSONAL HEARING- Shree Anirudh Tiwari, Accounts Officer Appeared for personal hearing on 06.07.18 and they reiterated the submission already made in the application.
6. DISCUSSION AND FINDINGS –
6.1. At the outset, we are inclined to observe that the Applicant has failed to articulate a specific question before us. What has been mentioned in Sr.No.14 of the Application, wherein the Applicant is required to mention the question(s) on which Advance Ruling is sought, is merely 'Applicability of provisions of S.No.3 & 3A of Table of Notification no. 12/2017 dtd.28.06.2017and corresponding notification issued under MPGST Act, 2017 as amended from time to time on services supplied to t

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We further observe that vide Notification No. 12/2017- Central Tax (Rate) dated 28th June, 2017 and corresponding notification issued under MPGST Act,2017 and Notification No. 2/2017- Central Tax (Rate) dated 28th June, 2017 and corresponding notification issued under MPGST Act,2017, both the activities of distribution & Transmission and retail supply of Electricity by the applicant are exempted. Hence there is no ambiguity about these activities.
6.4. We find from the application that the Applicant has made a specific mention of Sr. No.3A to notification no. 12/2017, which provides NIL rate of GST for composite supply of goods and services where the value of supply of goods constitute not more than 25% of the value of composite supply provided to the Central government or state government etc. by way of any activity in relation to any function entrusted to a Panchayat under article 243G of the Constitution. However, we do not find any specific mention of services in this context in t

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In Re: M/s. Madhya Pradesh Poorv Kshetra Vidyut Vitaran Company Limited (MPPKVVCL)
GST
2019 (1) TMI 418 – AUTHORITY FOR ADVANCE RULING, MADHYA PRADESH – 2019 (20) G. S. T. L. 810 (A. A. R. – GST)
AUTHORITY FOR ADVANCE RULING, MADHYA PRADESH – AAR
Dated:- 22-11-2018
Order No. 19/2018 Case No. 20/2018
GST
RAJIV AGRAWAL AND MANOJ KUMAR CHOUBEY MEMBER
Present on behalf of applicant: Shree Anil Kumar, Authorized Representative
PROCEEDINGS
(Under section 98 of Central Goods and Services Tax Act, 2017 and the Madhya Pradesh Goods and Services Tax Act, 2017)
1. The present application has been filed u/s 97 of the Central Goods & Services Tax Act. 2017 and MP Goods & Services Tax Act, 2017 (hereinafter also referred to CGST Act and MPSGT Act respectively) by M/s. Madhya Pradesh Poorv Kshetra Vidyut Vitaran Company Limited (hereinafter also referred to as applicant), registered under the Goods & Services Tax.
2. The provisions of the CGST Act and MPGST Act are identica

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received after the due date mentioned in bills is liable to pay delay payment charges.
4. QUESTION RAISED BEFORE THE AUTHORITY –
Whether applicant is eligible to avail the exemption from the levy of GST under Entry no. 25 of notification 12/2017- Central Tax (Rate) Dated 28/06/2017 bearing description 'Transmission or Distribution of electricity by an electricity transmission or distribution of electricity utility' with respect to the Delay Payment Charges recovered by the applicant from its consumers.
4.2 If answer of Question no. 1 is negative then what will be the applicable rate of tax and HSN/SAC code for Delayed Payment Charges.
5. DEPARTMENT'S VIEW POINT –
The concerned officer, The Joint Commissioner CGST and Central Excise Hqrs. jabalpur submitted that as per section 15(2)(d) of CGST Act, 2017 the value of supply shall include interest or late fees or penalty for delayed payment of any consideration for any supply. Further, as per the advance ruling authority

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on the company. The Madhya Pradesh Electricity Regulatory Authority (MPERC) is an Independent Authority fix rates of supply of power in the State of Madhya Pradesh.
6.4. The MPERC exercises the powers conferred by section 50 of the Electricity Act, 2003 for framing rules and regulations to frame Madhya Pradesh Electricity Supply Code,2013 same is reproduced under-
The State Commission shall specify an electricity supply code to provide for recovery of electricity charges, intervals for billing of electricity charges, disconnection of supply of electricity for non-payment thereof, restoration of supply of electricity; measures for preventing tampering, distress or damage to electrical plant, or electrical line or meter, entry of distribution licensee or   any person acting on his behalf for disconnecting supply and removing the meter; entry for replacing, altering or maintaining electric lines or electrical plants or meter and such other matters.
6.5. In addition to the en

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the bill as Surcharge on Outstanding Amount or Late Payment Surcharge.
6.8 EXEMPTION NOTIFICATION FOR TRANSMISSION AND DISTRIBUTION OF ELECTRICITY BY UTILITY-
A. Electricity Transmission and Distribution Services –
1. Notification No. 12/2017- Central Tax (Rate) dated 28th June, 2017 –
As per Notification No. 12/2017-Central Tax (Rate) dated 28th June, 2017 the activity of Transmission or distribution of electricity by an electricity transmission or distribution utility is NIL rate of GST-
Sl.No.
Service Code (Tariff) or SAC Code
Description of Services
Rate (per cent.)
Condition
25
Heading 9969
Transmission or distribution of electricity by an electricity transmission or distribution utility.
Nil
Nil
Further, the definition given under Notification No. 12/2017- Central Tax (Rate) dated 28.06.2017 is as under –
“electricity transmission or distribution utility” means the Central Electricity Authority; a State Electricity Board; the Central Transmission Utility or a Sta

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or SAC code
Description of Services
Rate (per cent.)
Condition
13
Heading 9969
Electricity, gas, water and other distribution service.
9
 
Being general clause at S.No. 13 Notification No. 11/2017- Central Tax (Rate) dated 28th June, 2017 applicable in cases of electricity distribution services provided by the person other than electricity transmission and distribution utility.
Since, the applicant is covered in the definition of electricity transmission and distribution utility and there is specific exemption for such class of person under Notification No. 12/2017- Central Tax (Rate) dated 28th June, 2017, therefore, in the instant case the distribution and transmission of electricity services provided by the applicant is exempted.
6.10 Electrical Energy-
As per Notification No. 2/2017- Central Tax (Rate) dated 28th June, 2017 the electrical energy as a goods had been exempted from GST.
Sl. No.
Chapter/Heading/Sub-heading/Tariff item
Description of Goods
104
2716

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i. Application fee for releasing connection of electricity;
ii. Rental Charges against metering equipment;
iii. Testing fee for meters/ transformers, capacitors etc.;
iv. Labour charges from customers for shifting of meters or shifting of service lines;
v. charges for duplicate bill;
Provided by DISCOMS to consumer are taxable.
Thus vide above circular it is clarified that the, not all the services of the DISCOMS are exempted.
7. ADVANCE RULLING ISSUED BY THE RAJASTHAN AUTHORITY OF ADVANCE RULING and appeal order on the issue by THE RAJASTHAN APPELLATE AUTHORITY OF ADVANCE RULING GST
7.1 Rajasthan authority of advance ruling, GST vide order no. RAJ/AAR/2018-19/02, Dated 11/05/2018 = 2018 (6) TMI 1196 – AUTHORITY FOR ADVANCE RULING – RAJASTHAN issued ruling on the same matter in case of M/s. TP Ajmer Distribution Limited (TPADL). The authority in the instant case provide ruling in case of Delay Payment Charges as under –
“As per Section 15(2)(d) of the CGST Act, 2017-
15(

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the Rajasthan Appellate Authority for Advance Ruling, GST as mentioned above is relevant in the instant case as it is the common practice amongst the electricity distribution Companies to recover the delay payment charges from the consumers in case of delay in payment. Further, the nature of income in the case of applicant and TPADL is same.
8. DISCUSSION AND FINDINGS:
The issue raised by the applicant and the material on record are discussed below-
8.1 Vide Notification No. 12/2017- Central Tax (Rate) dated 28th June, 2017 and corresponding notification issued under MPGST Act,2017 and Notification No. 2/2017- Central Tax (Rate) dated 28th June, 2017 and corresponding notification issued under MPGST Act, 2017 both the activity of distribution & Transmission and retail supply of Electricity by the applicant is exempted.
8.2 Further, Vide Circular No. 34/8/2018-GST, Dated 01st March 2018, it had been clarified that exemption granted under Notification No. 12/2017- Central Tax (Rate)

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e actually paid or payable for the said supply of goods or services or both where the supplier and the recipient of the supply are not related and the price is the sole consideration for the supply.
(2) The value of supply shall include
(a) any taxes, duties, cesses, fees and charges levied under any law for the time being in force other than this Act, the State Goods and Services Tax Act, the Union Territory Goods and Services Tax Act and the Goods and Services Tax (Compensation to States) Act, if charged separately by the supplier;
(b) any amount that the supplier is liable to pay in relation to such supply but which has been incurred by the recipient of the supply and not included in the price actually paid or payable for the goods or services or both;
(c) incidental expenses, including commission and packing, charged by the supplier to the recipient of a supply and any amount charged for anything done by the supplier in respect of the supply of goods or services or both at t

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as mentioned above as per the ruling of Rajasthan Appellate Authority for Advance Ruling. GST the Delay Payment Charges is exempted as the value of main supply i.e., electricity is exempted.
Attention is drawn towards fact the applicant is recovering delay payment charges not only towards supply of electrical energy as goods, supply Transmission/distribution of electricity service as an electricity distribution utility which are exempted, but also towards charges like metering charges and others which are taxable as per Circular No. 34/8/2018-GST, Dated – 01st March 2018.
Thus, in the instant case the supply in question is set of both, exempted (i.e., distribution & Transmission, retail supply of Electricity) and taxable supply (i.e., the other services as per circular no. 34/8/2018- GST, dated – 01st March, 2018).
Therefore, based on the above facts it can be concluded that the Delayed payment surcharge cannot be treated as separate service and same shall be included in the value

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Scope of principal and agent relationship under Schedule I of WBGST Act, 2017 in the context of del credere agent.
52/2018 Dated:- 22-11-2018 West Bengal SGST
GST – States
GOVERNMENT OF WEST BENGAL
DIRECTORATE OF COMMERCIAL TAXES
14, BELIAGHATA ROAD, KOLKATA-700015
TRADE CIRCULAR No. 52/2018 (Circular No. 73/47/2018-GST)
DATED: 22.11.2018
Subject: Scope of principal and agent relationship under Schedule I of WBGST Act, 2017 in the context of del credere agent.
Post issuance of Trade Circular No. 40/2018 dated 17th September, 2018, various representations have been received from the trade and industry, as well as from the field formations (i.e. jurisdictional officers) regarding the scope and ambit of principal agent relationship under GST in the context of del credere agent (hereinafter referred to as “DCA”). In order to clarify these issues and to ensure uniformity of implementation across field formations (i.e. jurisdictional officers), the Commissioner, in exercise of

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mself and recovering the amount from the buyer with some interest at a later date. This loan is to be repaid by the buyer along with an interest to the DCA at a rate mutually agreed between DCA and buyer. Concerns have been expressed regarding the valuation of supplies from Principal to recipient where the payment for such supply is being discharged by the recipient through the loan provided by DCA or by the DCA himself. Issues arising out of such loan arrangement have been examined and the clarifications on the same are as below:
Sl.No.
Issue
Clarification
1.
Whether a DCA falls under the ambit of agent under Para 3 of Schedule I of the WBGST Act?
As already clarified vide circular No. 40/2018 dated 17th September, 2018, whether or not the DCA will fall under the ambit of agent under Para 3 of Schedule I of the WBGST Act depends on the following possible scenarios:
* In case where the invoice for supply of goods is issued by the supplier to the customer, either himself or thro

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nt on Principal to Principal basis and is an independent supply.
Therefore, the interest being charged by the DCA would not form part of the value of supply of goods supplied (to the buyer) by the supplier. It may be noted that vide notification No. 1135-F.T. dated 28th June, 2017 (Sl. No. 27), services by way of extending deposits, loans or advances in so far as the consideration is represented by way of interest or discount (other than interest involved in credit card services) has been exempted.
3.
Where DCA is an agent under Para 3 of Schedule I of the WBGST Act and makes payment to the principal on behalf of the buyer and charges interest to the buyer for delayed payment along with the value of goods being supplied, whether the interest will form a part of the value of supply of goods also or not?
In such a scenario following activities are taking place:
1. Supply of goods by the supplier (principal) to the DCA;
2. Further supply of goods by the DCA to the recipient;
3. Sup

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Clarifications of issues under GST related to casual taxable person and recovery of excess Input Tax Credit distributed by an Input Service distributor.
50/2018 Dated:- 22-11-2018 West Bengal SGST
GST – States
GOVERNMENT OF WEST BENGAL
DIRECTORATE OF COMMERCIAL TAXES
14, BELIAGHATA ROAD, KOLKATA-700015
TRADE CIRCULAR No. 50/2018 (Circular No. 71/45/2018-GST)
DATED: 22.11.2018
Subject: Clarifications of issues under GST related to casual taxable person and recovery of excess Input Tax Credit distributed by an Input Service distributor
Representations have been received seeking clarification on certain issues under the GST laws. The same have been examined and the clarifications on the same are as below:
S.No.
Issue
Clarific

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ht be available to such taxable person.
2.
As per section 27 of the West Bengal Goods and Services Tax Act, 2017 (hereinafter referred to as the said Act), period of operation by causal taxable person is ninety days with provision for extension of same by the proper officer for a further period not exceeding ninety days. Various representations have been received for further extension of the said period beyond the period of 180 days, as mandated in law.
1. It is clarified that in case of long running exhibitions (for a period more than 180 days), the taxable person cannot be treated as a CTP and thus such person would be required to obtain registration as a normal taxable person.
2. While applying for normal registration the said person

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the WBGST Act resulting in excess distribution of credit to one or more recipients of credit, the excess credit so distributed shall be recovered from such recipients along with interest and penalty if any.
2. The recipient unit(s) who have received excess credit from ISD may deposit the said excess amount voluntarily along with interest if any by using FORM GST DRC-03.
3. If the said recipient unit(s) does not come forward voluntarily, necessary proceedings may be initiated against the said unit(s) under the provisions of section 73 or 74 of the WBGST Act as the case may be. FORM GST DRC-07 can be used by the tax authorities in such cases.
4. It is further clarified that the ISD would also be liable to a general penalty under the provi

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Processing of Applications for Cancellation of Registration submitted in FORM GST REG-16
48/2018 Dated:- 22-11-2018 West Bengal SGST
GST – States
GOVERNMENT OF WEST BENGAL
DIRECTORATE OF COMMERCIAL TAXES
14, BELIAGHATA ROAD, KOLKATA-700015
TRADE CIRCULAR No. 48/2018 (Circular No. 69/43/2018-GST)
DATED: 22.11.2018
Subject: Processing of Applications for Cancellation of Registration submitted in FORM GST REG-16.
The Commissioner is in receipt of representations seeking clarifications on various issues in relation to processing of the applications for cancellation of registration filed by taxpayers in FORM GST REG-16. In order to clarify these issues and to ensure uniformity in the implementation of the provisions of law across the field formations (i.e. jurisdictional officers), the Commissioner, in exercise of its powers conferred by section 168 (1) of the West Bengal Goods and Services Tax Act, 2017 (hereinafter referred to as the “WBGST Act”), hereby clarifies the issue

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icult in some cases to exactly identify or pinpoint the day on which such an event occurs. For instance, a business may be transferred/disposed over a period of time in a piece meal fashion. In such cases, the 30-day deadline may be liberally interpreted and the taxpayers' application for cancellation of registration may not be rejected because of the possible violation of the deadline.
4. While initiating the application for cancellation of registration in FORM GST REG-16, the Common portal captures the following information which has to be mandatorily filled in by the applicant:
a) Address for future correspondence with mobile number and email address;
b) Reason for cancellation;
c) Date from which cancellation is sought;
d) Details of the value and the input tax/tax payable on the stock of inputs, inputs contained in semi-finished goods, inputs contained in finished goods, stock of capital goods/plant and machinery;
e) In case of transfer, merger of business, etc., particulars

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r merge has not got registered with the tax authority before submission of the application for cancellation.
In all cases other than those listed at (a) and (b) above, the application for cancellation of registration should be immediately accepted by the proper officer and the order for cancellation should be issued in FORM GST REG-19 with the effective date of cancellation being the same as the date from which the applicant has sought cancellation in FORM GST REG-16. In any case the effective date cannot be a date earlier to the date of application for the same.
6. In situations referred to in (a) or (b) in para 5 above, the proper officer shall inform the applicant in writing about the nature of the discrepancy and give a time period of seven working days to the taxpayer, from the date of receipt of the said letter, to reply. If no reply is received within the specified period of seven working days, the proper officer may reject the application on the system, after giving the appli

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hin three months of the effective date of cancellation or the date of order of cancellation, whichever is later. The purpose of the final return is to ensure that the taxpayer discharges any liability that he/she may have incurred under sub-section (5) of the section 29 of the WBGST Act. It may be noted that the last date for furnishing of FORM GSTR-10 by those taxpayers whose registration has been cancelled on or before 30.09.2018 has been extended till 31.12.2018 vide notification No. 1540-F.T., dated the 30th October, 2018.
8. Further, sub-section (5) of section 29 of the WBGST Act, read with rule 20 of the WBGST Rules states that the taxpayer seeking cancellation of registration shall have to pay, by way of debiting either the electronic credit or cash ledger, the input tax contained in the stock of inputs, semi-finished goods, finished goods and capital goods or the output tax payable on such goods, whichever is higher. For the purpose of this calculation, the stock of inputs, se

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output tax liability of the taxpayer, as determined under sub-section (5) of section 29 of the WBGST Act, was greater than the amount of input tax credit available, then the difference shall be paid by him/her in cash. It is reiterated that, as stated in sub-section (3) of section 29 of the WBGST Act, the cancellation of registration does not, in any way, affect the liability of the taxpayer to pay any dues under the GST law, irrespective of whether such dues have been determined before or after the date of cancellation.
9. In case the final return in FORM GSTR-10 is not filed within the stipulated date, then notice in FORM GSTR-3A has to be issued to the taxpayer. If the taxpayer still fails to file the final return within 15 days of the receipt of notice in FORM GSTR-3A, then an assessment order in FORM GST ASMT-13 under section 62 of the WBGST Act read with rule 100 of the WBGST Rules shall have to be issued to determine the liability of the taxpayer under sub-section (5) of sectio

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e CGST Act has been amended by the CGST (Amendment) Act, 2018 to provide for “Suspension” of registration. The intent of the said amendment is to ensure that a taxpayer is freed from the routine compliances, including filing returns, under GST Act during the pendency of the proceedings related to cancellation. Although the provisions of CGST (Amendment) Act, 2018 have not yet been brought into force, it will be prudent for the field formations not to issue notices for non-filing of return for taxpayers who have already filed an application for cancellation of registration under section 29 of the WBGST Act. However, the requirement of filing a final return, as under section 45 of the WBGST Act, remains unchanged.
12. It may be noted that the information in table in FORM GST REG-19 shall be taken from the liability ledger and the difference between the amounts in Table 10 and Table 11 of FORM GST REG-16.
13. Difficulty, if any, in implementation of the above instructions may please be

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GST on Residential programmes or camps meant for advancement of religion, spirituality or yoga by religious and charitable trusts.
47/2018 Dated:- 22-11-2018 West Bengal SGST
GST – States
GOVERNMENT OF WEST BENGAL
DIRECTORATE OF COMMERCIAL TAXES
14, BELIAGHATA ROAD, KOLKATA-700015
TRADE CIRCULAR No. 47/2018 (Circular No. 66/40/2018-GST)
DATED: 22.11.2018
Subject: GST on Residential programmes or camps meant for advancement of religion, spirituality or yoga by religious and charitable trusts.
Certain representations have been received seeking clarification as regards applicability of GST on residential programmes or camps meant for advancement of religion, spirituality or yoga where the fee charged includes the cost of boardin

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all also be exempt as long as the primary and predominant activity, objective and purpose of such residential programmes or camps is advancement of religion, spirituality or yoga. However, if charitable or religious trusts merely or primarily provide accommodation or serve food and drinks against consideration in any form including donation, such activities will be taxable. Similarly, activities such as holding of fitness camps or classes such as those in aerobics, dance, music etc. will be taxable”.
3. It is accordingly clarified that taxability of the services of religious and charitable trusts by way of residential programmes or camps meant for advancement of religion, spirituality or yoga may be decided accordingly.
4. Difficulty if a

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