Applicant Recognized as 'Educational Institution' Under IIM Act, Qualifies for Tax Exemption Since January 31, 2018.
Case-Laws
GST
Educational Institution or not – introduction of the IIM Act
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GST Applies to Employee Meals in SEZ; Not Zero-Rated as Employees Aren't SEZ Developers or Units.
Case-Laws
GST
Levy of GST – food supplied to SEZ area to employees of company – employees can
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Authorities Urged to Show Leniency on E-way Bill Delays Due to Flood-Induced Transport Issues.
Case-Laws
GST
Detention of goods with vehicle – delay in transporting the consignment after fili
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GIST OF RECENT PRONOUNCEMENTS ON GST (PART-XVII)
By: – Dr. Sanjiv Agarwal
Goods and Services Tax – GST
Dated:- 6-11-2018
Goods and Services Tax (GST), introduced from July 1, 2017 is more than thirteen months old now but has resulted in operational and implementation disruptions affecting all stakeholders. GST law, as drafted and legislated, is not free from the interpretational hassles. GST Council is however, making regular changes to fix the anomalies and hardships faced by taxpayers. 30 meetings of GST Council have been held till 31st October, 2018.
Taxpayers have already challenged various provisions of GST laws and rules framed thereunder with our 200 writs being filed in different courts. High courts and Supreme court have taken a liberal stand so far in view of the fact that law is new and is yet evolving. However, CBIC may move to Supreme court where the verdict is against the Government. Recently, CBIC has issued directions to be officers to defend the writs
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under GST applicable at the time of bidding shall be absorbed by it on production of payment receipt of GST towards the Goods and Services on the respective item executed under the tender.
The assessee had completed the work after the implementation of GST regime and paid the GST at the rate of 18 per cent. It made several representations before the Water Authority for payment of the bill amount and the GST already deposited, but no response. The assessee filed writ petition praying that the Water Authority be directed to honour its bill and to pay the GST already deposited by it.
The court observed that so long as the Water Authority does not have a case that the assessee has not paid the GST amount or that it has not completed the works in question satisfactorily, it would not be reasonable on its part to keep these claims pending ad infinitum. A decision in this regard has to be taken by the Competent Authority imperatively and without any further delay.
In view of the aforesa
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tes, the same was delayed on account that petitioner furnished PAN number of another firm for purpose of obtaining registration under Kerala Value Added Tax Act and thus registration was granted w.e.f. 12-8-2017 because of which assessee was unable to comply with statutory requirements in relation to business for period from 1-7-2017 to 12-8-2017, authorities were directed to grant registration to petitioner from the date i.e., 1-7-2017 when GST statute came into force.
* In Indo Alusys Industries Ltd. v. Commissioner of Central Excise, Alwar (2018) 6 TMI 78 (Cestat, New Delhi); where the assessee was engaged in the manufacture of 'Aluminium Hollow Sections'. It sold the said item and paid the duty on the value. Subsequently, the assessee raised supplementary invoice on account of price variation and paid the duty. However, it did not pay interest on delayed payment of duty on account of supplementary invoice. The Adjudicating Authority held that the assessee was liable to pay intere
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t the escalated price as is mentioned in the supplementary invoice and in accordance of section 4 of the Central Excise Act whatever the transaction value is agreed between the parties at the time of clearance is relevant for section 11A and even for the purpose of section 11AB the expression 'ought to have been paid' would mean the time when the price is agreed upon by the seller and the buyer. In other words, the right of the seller to receive the revised price crystallized only when the buyer agrees to sanction the same and only at that time can liability to pay duty, if at all, on the revised price arise. Since both the parties were not aware of escalated price or possibility of escalation at the time the goods were removed, the supplementary invoice could not be taken as a ground to call the said duty paid as the short levied.
Resultantly, it was held that no question of paying the same along with interest arises and as such, the appeal was allowed. The order of the Comm
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Pr. Commissioner of Customs & Central Tax, Hyderabad – GST Versus M/s Evonik India Pvt. Ltd.
Customs
2019 (2) TMI 497 – CESTAT HYDERABAD – TMI
CESTAT HYDERABAD – AT
Dated:- 6-11-2018
Appeal Nos. C/31010 & 31099/2018 – A/31557-31558/2018
Customs
Mr. P. Venkata Subba Rao, Member (Technical)
Shri V.R. Pavan Kumar, Shri Guna Ranjan, Superintendent (ARs) for the Appellant (s).
None for the Respondent (s).
ORDER
Per: P. Venkata Subba Rao
These two appeals and the corresponding stay petitions have been filed by the Revenue against the impugned orders of the First Appellate Authority as follows:
Sl. No.
Appeal No.
Stay petition No.
Impugned Order
1.
C/31010/2018
C/Stay/30700/2018
OIA No. HYD-CUS-000-APP-006-18-19, dated 24.05.2018
2.
C/31099/2018
C/Stay/30739/2018
OIA No. HYD-CUS-000-APP-016-18-19, dated 22.06.2018
2. When these two appeals were called out, none appeared on behalf of the respondent. Since the issue falls in short compass the matter
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AD unit is 4%, to claim SAD refund VAT as applicable for the goods in question has to be paid which could be more or less than 4%. In this case the respondent's goods were exempted from VAT and as such nil rate of duty VAT was applicable and they had sold the goods and claimed refund of SAD. The refund applications were rejected by the lower authority holding that they had not fulfilled the conditions of the Notification No. 102/2007-Cus dated 14.09.2007 inasmuch as they had not paid any VAT or sales tax on the goods sold and therefore the exemption notification does not apply to them.
4. Aggrieved, the respondent herein preferred appeals before the First Appellate Authority who, after examining the matter in detail, allowed the appeals of the assessee. The present appeals are against these orders of the First Appellate Authority.
5. Learned Departmental Representative submits that the exemption notification has to be strictly construed and it requires that the appropriate rate of VA
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Nikhil Kumar Vs. Commissioner of Customs [2005 (187) ELT 6 (Cal.)] the Hon'ble High Court of Calcutta also held that the term 'appropriate' does not include 'nil'.
iii) Even, if more than one interpretation is possible the exemption notification must be strictly construed and therefore the benefit of the exemption notification No. 102/2007 should not have been given to the respondent herein. Therefore the orders of the first appellate authority may be set aside.
6. I have considered the arguments and perused the records. The short point to be decided is whether the benefit of SAD in terms of Notification No. 102/2007-Cus is available to importers who sell the imported goods on payment of nil rate of VAT when the applicable rate of VAT is nil. The Department asserts that it is not available while the first appellate authority held that it is available. The Department seeks to rely on the judgment of the Hon'ble Supreme Court in the case of Dhiren Chemical Industries (supra) to hold t
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SH Rao Versus Commissioner of Central Tax, Guntur – GST
Service Tax
2018 (11) TMI 976 – CESTAT HYDERABAD – TMI
CESTAT HYDERABAD – AT
Dated:- 6-11-2018
Appeal No. ST/30844/2018 – A/31466/2018
Service Tax
Mr. P. Venkata Subba Rao, Member (Technical)
Shri Y. Sreenivasa Reddy, Advocate for the Appellant.
Shri V.R. Pavan Kumar, Superintendent (AR) for the Respondent.
ORDER
Per: P. Venkata Subba Rao
This appeal is directed against Order-in-Appeal No. GUNEXCUS- 000-APP-006-18-19, dated 13.04.2018.
2. Heard both sides and perused the records.
3. The appellant herein was providing digitization of records and database services and was liable to pay service tax and he was also availing the facility of CENVAT credit under CENVAT Credit Rules, 2004. During the course of audit, it was found by the department that the assessee has taken irregular CENVAT credit to the extent of Rs. 42,750/- on some services he has also availed an excess amount of Rs. 4,452/- as credit
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nal of the lower authority. Hence this appeal.
4. Learned Counsel for the appellant submits that the appellant was a small time operator without adequate knowledge of the service tax procedures and CENVAT Credit Rules and therefore had taken CENVAT credit wrongly on several inputs including the two amounts in dispute. On being pointed he had reversed the amounts along with interest except the interest on these two amounts. The appeal has been filed seeking that the interest under Section 75 and the penalty under Section 78 equal to the demand may also be set aside. They have not disputed the recovery of the CENVAT credit. Insofar as the amount of interest is concerned, it was the contention in their appeal that they had adequate balance in their credit and hence no interest was liable to be paid because they had not utilized the disputed amounts. Learned Counsel fairly concedes that this position is not correct and they had, in fact, utilized the credit and therefore were liable to pa
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d and they had not maintained any credit balance equivalent to the irregular credit taken during the period in dispute. In fact, the assessee had shown zero closing balance of service tax in their ST-3 returns. He, therefore, submits that the appellant was liable to pay interest as they had wrongly utilized the CENVAT credit. He further argues that in so far as these two amounts were concerned, the appellant had taken CENVAT credit in violation of the rules and had evaded payment of duty to the extent. Therefore they are fully liable for penalty under Section 78 of the Finance Act, 1994. However, he concedes that the appellant was covered by the proviso to Section 78 is applicable during the relevant period inasmuch as the irregular availment of CENVAT credit by the appellant and consequent evasion of payment of service tax was noticed by an audit of the books of accounts maintained by the appellants themselves.
6. I have considered the arguments on both sides and perused the records.
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M/s Sri Lakshmi Prasanna Agro Paper Industries Ltd. Versus Commissioner of Central Excise, Visakhapatnam – GST
Central Excise
2018 (11) TMI 906 – CESTAT HYDERABAD – TMI
CESTAT HYDERABAD – AT
Dated:- 6-11-2018
Appeal No. E/30484/2018 – A/31465/2018
Central Excise
Mr. P. Venkata Subba Rao, Member (Technical)
Shri D. Viswanathan, Consultant for the Appellant.
Shri P.S. Reddy, Assistant Commissioner (AR) for the Respondent.
ORDER
Per: P. Venkata Subba Rao
Facts of the case in brief are that the appellants herein are manufacturers of printing and writing paper, newsprint and kraft paper etc., and have being paying excise duty and filing periodical returns. During the months of March, 2013 and April, 2013 there was a delay in payment of excise duty to the tune of Rs. 4,91,507/- and 4,30,040/- for a short period. As the delay in payment of Central Excise duty for the months of March and April 2013 is beyond the grace period of 30 days the assessee /appellant is
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he imposition of penalty under Rule 25 for violation of Rule 8(3A) of the Central Excise Rules, 2002. He would submit that these Rule 8(3A) of Central Excise Rules 2002, has been read down by the Hon'ble High Court of Gujarat in the case of Indsur Global Ltd., Vs. Union of India [2014 (12) TMI 585 – Gujarat High Court]. Relying on this judgment of Hon'ble High Court of Gujarat, the following orders were passed including one by the CESTAT Hyderabad. Endo Labs Ltd., Shri Dheeraj Lulla Director Vs. CCE & ST [2017 (1) TMI 1604 -CESTAT New Delhi], CCE & C, Nashik-II Vs. Nasik Forge Pvt. Ltd., [2018 (9) TMI 1582- Bombay High Court] & CCE, C & ST, Hyderabad -I Vs. Sri Durga Packing Industries [2017 (6) TMI 74- CESTAT-Hyderabad]. The entire penalty was for violation of Rule 8(3A) which has been held ultra vires by the constitutional Bench of the Hon'ble High Court of Gujarat which decision was followed in other decisions including the order of the Hon'ble High Court of Bombay and by this Bench
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nd the appellant is liable to penalty under Rule 25 of the Central Excise Rules, 2002. The only point on which the Learned Consultant argues is that Rule 8(3A) has already been read down by the Hon'ble High Court of Gujarat and hence the demand is not sustainable. Learned Departmental Representative rightly points out that this decision has been stayed by the Hon'ble Supreme Court. He further submits that this stay was not brought to the notice of the bench in other cases relied upon by the Learned Counsel. The stay granted by the Hon'ble Apex Court leaves me with no option was to hold that the ratio of the judgment of the Hon'ble High Court does not apply. However, considering overall facts of the case, I find it is fair to reduce the penalty imposed on the appellant under Rule 25 from Rs. 50,000/- to Rs. 25,000/-. The impugned order is modified to the extent that the penalty imposed on the appellant reduced to Rs. 25,000/-. The appeal is disposed of as herein above.
(Operative porti
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The Haryana Goods and Services Tax (Fifteenth Amendment) Rules, 2018.
099/GST-2 Dated:- 6-11-2018 Haryana SGST
GST – States
Haryana SGST
Haryana SGST
HARYANA GOVERNMENT
EXCISE AND TAXATION DEPARTMENT
Notification
The 6th November, 2018
No. 99/GST-2.- In exercise of the powers conferred by section 164 of the Haryana Goods and Services Tax Act, 2017 (19 of 2017), the Governor of Haryana, hereby makes the following rules further to amend the Haryana Goods and Services Tax Rules, 2017, namely:-
1. (1) These rules may be called the Haryana Goods and Services Tax (Fifteenth Amendment) Rules, 2018.
(2) They shall be deemed to have come into force with effect from the 30th October, 2018.
2. In the Haryana Goods and Services Tax Rules, 2017 (hereinafter called the said rules), after rule 83, the following rule shall be inserted, namely:-
“83A. Examination of Goods and Services Tax Practitioners.-(1) Every person referred to in clause (b) of sub-rule (1) of rule 83 and who
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mination centers.-The examination shall be held across India at the designated centers. The candidate shall be given an option to choose from the list of centers as provided by NACIN at the time of registration.
(6) Period for passing the examination and number of attempts allowed.- (i) A person enrolled as a goods and services tax practitioner in terms of sub-rule (2) of rule 83 is required to pass the examination within two years of enrolment:
Provided that if a person is enrolled as a goods and services tax practitioner before 1st of July 2018, he shall get one more year to pass the examination:
Provided further that for a goods and services tax practitioner to whom the provisions of clause (b) of sub-rule (1) of rule 83 apply, the period to pass the examination will be as specified in the second proviso of sub-rule (3) of said rule.
(ii) A person required to pass the examination may avail of any number of attempts but these attempts shall be within the period as specified in
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shall issue examination guidelines covering issues such as procedure of registration, payment of fee, nature of identity documents, provision of admit card, manner of reporting at the examination center, prohibition on possession of certain items in the examination center, procedure of making representation and the manner of its disposal.
(ii) Any person who is or has been found to be indulging in unfair means or practices shall be dealt in accordance with the provisions of sub-rule (10). An illustrative list of use of unfair means or practices by a person is as under: –
(a) obtaining support for his candidature by any means;
(b) impersonating;
(c) submitting fabricated documents;
(d) resorting to any unfair means or practices in connection with the examination or in connection with the result of the examination;
(e) found in possession of any paper, book, note or any other material, the use of which is not permitted in the examination center;
(f) communicating with other
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satisfied with his result may represent in writing, clearly specifying the reasons therein to NACIN or the jurisdictional Commissioner as per the procedure established by NACIN on the official websites of the Board, NACIN and common portal.
(13) Power to relax.- Where the Board or State Tax Commissioner is of the opinion that it is necessary or expedient to do so, it may, on the recommendations of the Council, relax any of the provisions of this rule with respect to any class or category of persons.
Explanation :- For the purposes of this sub-rule, the expressions –
(a) “jurisdictional Commissioner” means the Commissioner having jurisdiction over the place declared as address in the application for enrolment as the GST Practitioner in FORM GST PCT-1. It shall refer to the Commissioner of Central Tax if the enrolling authority in FORM GST PCT-1 has been selected as Centre, or the Commissioner of State Tax if the enrolling authority in FORM GST PCT-1 has been selected as State;
(b)
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e 142, the following rule shall be inserted, namely:-
“142A. Procedure for recovery of dues under existing laws. – (1) A summary of order issued under any of the existing laws creating demand of tax, interest, penalty, fee or any other dues which becomes recoverable consequent to proceedings launched under the existing law before, on or after the appointed day shall, unless recovered under that law, be recovered under the Act and may be uploaded in FORM GST DRC-07A electronically on the common portal for recovery under the Act and the demand of the order shall be posted in Part II of Electronic Liability Register in FORM GST PMT-01.
(2) Where the demand of an order uploaded under sub-rule (1) is rectified or modified or quashed in any proceedings, including in appeal, review or revision, or the recovery is made under the existing laws, a summary thereof shall be uploaded on the common portal in FORM GST DRC-08A and Part II of Electronic Liability Register in FORM GST PMT-01 shall be
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file your tax return due for the tax period in which the effective date of surrender of registration falls or furnish an application to the effect that no taxable supplies have been made during the intervening period (i.e. from the date of registration to the date of application for cancellation of registration).”.
5. In the said rules, in FORM GSTR-4, in the Instructions, for serial number 10, the following shall be substituted, namely:-
“10. Information against the Serial 4A of Table 4 shall not be furnished.”.
6. In the said rules, for FORM GST PMT-01 relating to “Part II: Other than return related liabilities”, the following form shall be substituted, namely:-
“Form GST PMT -01
[See rule 85(1)]
Electronic Liability Register of Registered Person
(Part-II: Other than return related liabilities)
(To be maintained at the Common Portal)
Reference No.-
GSTIN/Temporary Id –
Date-
Name (Legal) –
Trade name, if any –
Stay status – Stayed/Un-stayed Period – From To (dd/mm/y
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recorded accordingly.
3. Reduction or enhancement in the amount payable due to decision of appeal, rectification, revision, review etc. will be reflected here.
4. Negative balance can occur for a single Demand ID also if appeal is allowed/ partly allowed. Overall closing balance may still be positive.
5. Refund of pre-deposit can be claimed for a particular demand ID if appeal is allowed even though the overall balance may still be positive subject to the adjustment of the refund against any liability by the proper officer.
6. The closing balance in this part shall not have any effect on filing of return.
7. Reduction in amount of penalty would be automatic if payment is made within the time specified in the Act or the rules.
8. Payment made against the show cause notice or any other payment made voluntarily shall be shown in the register at the time of making payment through credit or cash. Debit and credit entry will be created simultaneously.”.
7. In the said rules, in FORM G
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r date
13.
Date of service of the order (optional)
14.
Name of the officer who has passed the order (Optional)
15.
Designation of the officer who has passed the order
16.
Whether demand is stayed
ð Yes ð No
17.
Date of stay order
18.
Period of stay
From – to –
Part B – Demand details
19.
Details of demand created
(Amount in Rs. in all Tables)
Act
Tax
Interest
Penalty
Fee
Others
Total
1
2
3
4
5
6
7
Central Acts
State/UT Acts
CST Act
20.
Amount of demand paid under existing laws
Act
Tax
Interest
Penalty
Fee
Others
Total
1
2
3
4
5
6
7
Central Acts
State/UT Acts
CST Act
21. (19-20)
Balance amount of demand proposed to be recovered under GST laws
<< Auto-populated >>
Act
Tax
Interest
Penalty
Fee
Others
Total
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Central Acts
State/UT Acts
CST Act
Signature
Name
Designation
Jurisdiction
To
_______________ (GSTIN/ID)
Name
_______________ (Address)
Copy to –
Note –
1. In case of demands
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of summary of the order creating demand under existing laws
Reference no.
Date –
Part A – Basic details
Serial Number
Description
Particulars
(1)
(2)
(3)
1.
GSTIN
2.
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3.
Trade name, if any
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4.
Reference no. vide which demand uploaded in FORM GST DRC-07A
5.
Date of FORM GST DRC-07A vide which demand uploaded
6.
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ð State /UT ð Centre
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7.
Old Registration No.
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8.
Jurisdiction under earlier law
<>
9.
Act under which demand has been created
<>
10.
Tax period for which demand has been created
<>
11.
Order No. (original)
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12.
Order date (original)
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13.
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14.
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15.
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16.
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17.
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18.
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ð Yes ð No
19.
Date of stay order
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Notification to exempt supply from PSU to PSU from applicability of provisions relating to TDS under HGST Act, 2017.
100/GST-2 Dated:- 6-11-2018 Haryana SGST
GST – States
Haryana SGST
Haryana SGST
HARYANA GOVERNMENT
EXCISE AND TAXATION DEPARTMENT
Notification
The 6th November, 2018
No.100/GST-2.- In exercise of the powers conferred by sub-section (3) of section 1 read with section 51 of the Haryana Goods and Services Tax Act, 2017 (19 of 2017), the Governor of Haryana, on th
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GST TDS Rules Amended: Transactions Between Public Sector Undertakings Now Exempt from TDS Requirements Under GST.
Notifications
GST
TDS under GST – public sector undertaking – supply from on
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Kerala Government exempts quit rent for agricultural land used in coffee plantations from GST under HSN 9986.
Case-Laws
GST
The quit rent / lease rent paid to Kerala Government on the land us
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'Classic Malabar Parota' & 'Whole Wheat Malabar Parota' fall under 18% GST in Schedule III, Heading 2106.
Case-Laws
GST
‘Classic Malabar Parota’ and ‘Whole Wheat Malabar Parota’ class
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Medicines and Implants for In-Patient Care Qualify as Composite Supply, Exempt Under Health Care Services.
Case-Laws
GST
The supply of medicines, consumables and implants used in the course of providing health care services to in-patients for diagnosis or treatment are naturally bundled and are provided in conjunction with each other, would be considered as “Composite Supply” and eligible for exemption under the category ‘health care services’.
TMI Updates – Highlights, quic
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Court Bars Revenue Authorities from Forcing ONGC to Deposit GST Dues Amid Petitioner's Financial Hardship.
Case-Laws
GST
Recovery of GST dues from the debtors – extreme financial hardship – t
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COMMISSION PAYMENT
Query (Issue) Started By: – nandankumar roy Dated:- 5-11-2018 Last Reply Date:- 20-12-2018 Goods and Services Tax – GST
Got 5 Replies
GST
WE ARE PAYING COMMISSION TO PARTY AS A SALES COMMISSION : PARTY IS NOT REGISTERED TO GST AS THEIR ALL TRANSACTION WITH IN TURNOVER LIMIT 20 LACS CITERIA
1ST PARTY INTRA STATE AND PAYING 7 LACS
2ND PARTY INTERSTATE AND PAYING 9 LACS
WHAT WILL BE IMPACT ON TRANSACTION IN GST REGIME AND WHETHER ANY LIABILITY ARISE IN FUTURE WITH US . PL HELP REGARDING THIS MATTER WHO HAVE CLEAR IDEA AND ADVANCE THANKS.
N K ROY
Reply By Nandan Khambete:
The Reply:
No impact in GST till 30.9.2019 as RCM for 9(4) CGST is deferred till 30.09.2019.
Reply By DR.MARIAPPAN GOVINDARAJAN:
The R
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INSTANT NOODLES: INSTANT PROFITS
By: – Dr. Sanjiv Agarwal
Goods and Services Tax – GST
Dated:- 5-11-2018
If noodles can be cooked and consumed instantly, why not profit on sale of noodles! In yet another case where anti-profiteering charges have been established, the National Anti-profiteering Authority (NAA) has confirmed that sale of Maggie Noodle pack (Noodles) at same price even after rate of GST on it was reduced from 18% to 12% w.e.f. 15 November, 2017 was a case of anti-profiteering u/s 171 of the CGST Act 2017 read with Rule 128 CGST Rules, 2017 and that the dealer ought to be booked and penalized for indulging in such anti-profiteering act.
In a recent order dated 8th October, 2018, the NAA has in the matter of Ankur Jain and DGAP, CBIC, New Delhi v. Kunj Lub Marketing Pvt. Ltd., Hardoi (UP) (2018) 10 TMI 510; confirmed the allegation of anti-profiteering and penalized the dealer.
The complainant (retailer) lodged an e-mail complaint stating that he had purc
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price reduction would have been around 21 paise to the retailer and around 25 paise to the ultimate consumer which would have been inconvenient to both the retailer and the consumer. However, on Maggi Noodles pack of 70 gms. bearing MRP of ₹ 12/- per pack, the benefit on account of GST rate reduction for the retailer would have been approximately 56 paise against which the distributor had reduced the price by 92 paise with reduced MRP of ₹ 11/- and thus, the benefit in respect of ₹ 5/- MRP pack had been passed on by reducing the price of other packs of Maggi Noodles by more than what was required. It claimed that the benefit of GST rate reduction had been passed on in respect of Maggie Noodles as a whole.
The dealer has contended that it had passed on the benefit of GST rate reduction in respect of 70 gm. pack of Maggi Noodles bearing MRP of ₹ 12/- by reducing the price for the complainant and the ultimate consumer by 92 paise and Re. 1/- respectively, which w
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H
I
J
K
L=112% of E
M=[H-L]
N=[K*M]
1
MAGGI 2-MIN Mas Ndls 35Gms
5.00
4.67
3.96
18%
12468
4.67
4.17
12%
382048
4.43
0.24
90,778/-
Total Profiteering on sale of the Product
90,778/-
The NAA considered the report of DGAP and carved out the following issues to be decided by the Authority:
* Whether the benefit accrued due to reduction in the rate of tax of one product can be passed on via another product or not?
* Whether there was any violation of the provisions of Section 171 of the CGST Act, 2017 in this case?
* If yes then what was the quantum of profiteering?
It noted that there is no doubt that the benefit of reduction in the GST rate was not passed on to the recipients by way of commensurate reduction in the price charged by the dealer which amounts to violation of the provisions of Section 171 of the Act.
Further, the distributor had no legal sanction to increase the base price of the product on his own and what was required of him was that he should
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in respect of which products he would pass on the benefit and in respect of which products he would not pass such benefit. As per the provisions of Section 171 of the Act the benefit has to be passed on to each recipient and the same can not be selectively granted or denied. It is also clear that the Maggi Noodle pack of 35 Gms. is distinct from a 70 Gms. pack and both the packs may be bought by the different recipients/customers and hence the benefit accruing to one customer can not be given or denied to another nor can the benefit given to one set of customers arbitrarily enhanced and set off against the another. No such adjustments are permissible under the law.
The NAA held that the distributor had denied benefit of the reduction in GST rate to the consumers in contravention of the provisions of Section 171 (1) of the CGST Act, 2017 and had thus realized more price from them than he was entitled to collect and had also compelled them to pay more GST than that they were required t
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Jeetendra Kantilal Gandhi Versus State of Karnataka By Commissioner of Commercial Taxes, Bengaluru, Assistant Commissioner of Commercial Taxes, Bengaluru, Assistant Commissioner of Commercial Taxes Bangaluru
GST
2018 (12) TMI 1407 – KARNATAKA HIGH COURT – 2018 (19) G. S. T. L. 410 (Kar.)
KARNATAKA HIGH COURT – HC
Dated:- 5-11-2018
CRL. P No 7465 of 2018
GST
MR P S Dinesh Kumar, J.
For The Petitioner : Sri Chitnis P R, Advocate
For The Respondent : Sri Nitin Ramesh AAG A/w
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Corrigendum to Circular No. 57/2018-GST dated the 5th November, 2018 (effective from 4th September, 2018).
Corrigendum to Circular No. 57/2018-GST Dated:- 5-11-2018 Gujarat SGST
GST – States
CIRCULAR
Commissioner of State Tax,
Gujarat State, Ahmedabad
Dated 5th November, 2018
Corrigendum to Circular No. 57/2018-GST
No.GSL/GST/B.14
Subject: Corrigendum to Circular No. 57/2018-GST dated the 5th November, 2018 (effective from 4th September, 2018).
In para 9 of the Circular No. 57/2018-GST dated the 5th November, 2018 (effective from) 4th September,2018),
for
“However, in cases where the supply of' agricultural produce is not exempted and liable to lax, such commission agent shall be liable for compulsory registration under su
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who supplies produce out of cultivation of' land is not liable for registration and therefore does not fall within the ambit of the term 'taxable person'. Thus a commission agent who is making supplies on behalf of such an agriculturist, who is not a taxable person. is not liable for compulsory registration under clause (vii) of section 24 of the GGST Act. However, where a commission agent is liable to pay under reverse charge, such an agent will be required to get registered compulsorily under section 24(iii) of GGST Act.”
2. Difficulty, if any, in implementation of this Circular may please be brought to the notice of the Commissioner.
(PD Vaghela)
Commissioner of State Tax,
Gujarat State, Ahemdabad
Circular, Trade Notice, Public
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Scope of principal and agent relationship under Schedule I of GGST Act, 2017 in the context of del-credrc agent.
CIRCULAR No. 73/2018-GST Dated:- 5-11-2018 Gujarat SGST
GST – States
CIRCULAR
Commissioner of State Tax,
Gujarat State, Ahmedabad
Dated 5th November, 2018
CIRCULAR No.73/2018-GST
No. GSL/GST/B.15
Subject: Scope of principal and agent relationship under Schedule I of GGST Act, 2017 in the context of del-credrc agent.
Post issuance of circular No. 57/201 S-GST dated the 5th November, 2018 (effective from 4th September, 2018). various representations have been received from the trade and industry. as well as from the field formations regarding the scope and ambit of principal agent relationship under GST in the context of del-credre agent (hereinafter referred to as “DCA”). In order to clarify these issues and to ensure uniformity of implementation across field formations, the Commissioner of State Tax, in exercise of its powers conferred under section 168 (1) o
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h 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 lune 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 clarification 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 GGST Act?
As already clarified vide circular No. 57/31/2018-GST dated 4th September, 2018, whether or not the DCA will fall under the ambit of agent under Para 3 of Schedule I of the GGST 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 through DCA, the DCA does not fall under the ambit of
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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. 12/2017-State Tax (Rate) dated 30th June, 2017 (S. 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 GGST 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. Supply of agency services by the DCA to the su
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Scope of Principal-agent relationship in the context of Schedule I of the GGST Act.
CIRCULAR No. 57/2018 Dated:- 5-11-2018 Gujarat SGST
GST – States
CIRCULAR
Commissioner of State Tax,
Gujarat State, Ahmedabad
Dated 5th November, 2018
CIRCULAR No. 57/2018
No.GSL/GST/B.13
Subject: Scope of Principal-agent relationship in the context of Schedule I of the GGST Act.
In terms of Schedule I of the Gujarat Goods and Services Tax Act, 2017 (hereinafter to as the “GGST Act”), the supply of goods by an agent on behalf of the principal without consideration has been deemed to be a supply. In this connection, various representations have been received regarding the scope and ambit of the principal-agent relationship under GST. In order to clarify some of the issues and to ensure uniformity in the implementation of the provisions of the law across the field formations, the Commissioner of State Tax, in exercise of its powers conferred under section 168 (1) of the GGST Act hereby cl
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lf of another.
4. The following two key elements emerge from the above definition of agent:
a) the term 'agent' is defined in terms of the various activities being carried out by the person concerned in the principal-agent relationship; and
b) the supply or receipt of goods or services has to be undertaken by the agent on behalf of the principal.
From this, it can be deduced that the crucial component for covering a person within the ambit of the term “agent” under the GGST Act is corresponding to the representative character identified in the definition of “agent” under the Indian Contract Act, 1872.
5. Further, the two limbs of any supply under GST are “consideration” and “in the course or furtherance of business”. Where the consideration is not extant in a transaction, such a transaction does not fall within the ambit of supply. But, in certain scenarios, as elucidated in Schedule I of the GGST Act, the key element of consideration is not required to be present for treating
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to determine whether the agent is wearing the representative hat and is supplying or receiving goods on behalf of the principal. Since in the commercial world, there are various factors that might influence this relationship, it would be more prudent that an objective criteria is used to determine whether a particular principal-agent relationship falls within the ambit of the said entry or not. Thus, the key ingredient for determining relationship under GST would be whether the invoice for the further supply of goods on behalf of the principal is being issued by the agent or not. Where the invoice for further supply is being issued by the agent in his name then, any provision of goods from the principal to the agent would fall within the fold of the said entry. However, it may be noted that in cases where the invoice is issued by the agent to the customer in the name of the principal, such agent shall not fall within the ambit of Schedule I of the GGST Act. Similarly, where the goods
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ly of goods in terms of Schedule I.
Scenario 2
M/s. XYZ, a banking company, appoints Mr. B (auctioneer) to auction certain goods. The auctioneer arranges for the auction and identifies the potential bidders. The highest bid is accepted and the goods are sold to the highest bidder by M/s. XYZ. The invoice for the supply of the goods is issued by M/s. XYZ to the successful bidder. In this scenario, the auctioneer is merely providing the auctioneering services with no role played in the supply of the goods. Even in this scenario, Mr. B is not an agent of Mis XYZ for the supply of goods in terms of Schedule I.
Scenario 3
Mr. A, an artist, appoints M/s. B (auctioneer) to auction his painting. M/S B arranges for the auction and identifies the potential bidders. The highest bid is accepted and the painting is sold to the highest bidder. The invoice for the supply of the painting is issued by M/s. B on the behalf of Mr. A but in his own name and the painting is delivered to the successfu
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per the APMC Act, the commission agent is a person who buys or sells the agricultural produce on behalf of his principal, or facilitates buying and selling of agricultural produce on behalf of his principal and receives, by way of remuneration, a commission or percentage upon the amount involved in such transaction.
In cases where the invoice is issued by Mr. B to the buyer, the former is an agent covered under Schedule J. However, in cases where the invoice is issued directly by Mr. A to the buyer, the commission agent (Mr. B) doesn't fall under the category of agent covered under Schedule I.
9. In scenario I and scenario 2, Mr. B shall not be liable to obtain registration in terms of clause (vii) of section 24 of the GGST Act. He, however, would be liable for registration if his aggregate turnover of supply of taxable services exceeds the threshold specified in sub-section (1) of section 22 of the GGST Act. In scenario 3, M/s. B shall be liable for compulsory registration in terms
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A SYED ALI FATHIMA Versus THE ASSISTANT STATE TAX OFFICER SUVEILLANCE SQUAD, POOVAR, STATE GST DEPARTMENT, THIRUVANANTHAPURAM, THE STATE OF KERALA REPRESENTED BY THE SECRETARY, THIRUVANANTHAPURAM AND THE COMMISSIONER OF STATE TAX STATE GOODS AND SERVICE TAX DEPARTMENT, THIRUVANANTHAPURAM
GST
2018 (11) TMI 484 – KERALA HIGH COURT – TMI
KERALA HIGH COURT – HC
Dated:- 5-11-2018
WP(C).No. 36047 of 2018
GST
MR A. MUHAMED MUSTAQUE, J.
For The Petitioner : ADVS. SRI.P.S.SOMAN AND
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Collection of tax at source by Tea Board of India – Reg.
74/48/2018 Dated:- 5-11-2018 CGST – Circulars / Ordes
GST
Circular No. 74/48/2018-GST
F. No. 20/16/04/2018- GST
Government of India
Ministry of Finance
Department of Revenue
Central Board of Indirect Taxes and Customs
GST Policy Wing
New Delhi, Dated the 5th November, 2018
The Principal Chief Commissioners/ Chief Commissioners/ Principal Commissioners/Commissioners of Central Tax (All)
The Principal Directors General/ Directors General (All)
Madam/Sir,
Subject: Collection of tax at source by Tea Board of India – Reg.
Tea Board of India (hereinafter referred to as the, “Tea Board”), being the operator of the electronic auction system for trading of tea across the
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rged by the auctioneers and also the amount charged by the Tea Board from sellers, auctioneers and buyers. Thereafter, Tea Board pays to the sellers (i.e. tea producers), from the said escrow account, for the supply of goods made by them (i.e. tea) and to the auctioneers for the supply of services made by them (i.e. brokerage). Under no circumstances, the payment is made by the Tea Board to the auctioneers on account of supply of goods i.e., tea sold at auction.
4. A representation has been received from Tea Board, seeking clarification whether they should collect TCS under section 52 of the CGST Act from the sellers of tea (i.e. the tea producers), or from the auctioneers of tea or from both.
5. The matter has been examined. In exercise
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Scope of principal and agent relationship under Schedule I of CGST Act, 2017 in the context of del-credere agent – Reg.
73/47/2018 Dated:- 5-11-2018 CGST – Circulars / Ordes
GST
Circular No. 73/47/2018-GST
F. No. 20/16/04/2018- GST
Government of India
Ministry of Finance
Department of Revenue
Central Board of Indirect Taxes and Customs
GST Policy Wing
New Delhi, Dated the 5th November, 2018
The Principal Chief Commissioners/ Chief Commissioners/ Principal Commissioners/ Commissioners of Central Tax (All)
The Principal Directors General/ Directors General (All)
Madam/Sir,
Subject: Scope of principal and agent relationship under Schedule I of CGST Act, 2017 in the context of del-credere agent – Reg.
Post issuance of circular No. 57/31/2018-GST dated 4th September, 2018 from F. No. CBEC/20/16/4/2018-GST, various representations have been received from the trade and industry, as well as from the field formations regarding the scope and ambit of principal agent relatio
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paid to a normal agent. In order to guarantee timely payment to the supplier, the DCA can resort to various methods including extending short-term transaction-based loans to the buyer or paying the supplier himself 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 CGST Act?
As already clarified vide circular No. 57/31/2018-GST dated 4th September, 2018, whether or not the DCA will fall under the am
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n cases where the DCA is not an agent under Para 3 of Schedule I of the CGST Act, the temporary short-term transaction based loan being provided by DCA to the buyer is a supply of service by the DCA to the recipient 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. 12/2017-Central Tax (Rate) dated 28th June, 2017 (S. 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 CGST 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
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TDS under GST – public sector undertaking – supply from one PSU to another PSU exempted from applicability of provisions relating to TDS
61/2018 Dated:- 5-11-2018 Central GST (CGST)
GST
CGST
CGST
Government of India
Ministry of Finance
(Department of Revenue)
Central Board of Indirect Taxes and Customs
Notification No. 61/2018 – Central Tax
New Delhi, the 5th November, 2018
G.S.R. 1084 (E).- In exercise of the powers conferred by sub-section (3) of section 1, read with section 51 of the Central Goods and Services Tax Act, 2017 (12 of 2017), hereafter in this notification referred to as the said Act, the Central Government, on the recommendations of the Council, hereby makes the following further amendments in the notifi
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Has charity included pay gst
Query (Issue) Started By: – Chiran Kumar Dated:- 4-11-2018 Last Reply Date:- 6-11-2018 Goods and Services Tax – GST
Got 2 Replies
GST
Hello sir … We are running a non profit organisation under registration of 12AAA, and 80G
My doubt is we are running special school in rented building, so has we should pay GST with rent.. by chance if we payed can we reclaimed it..
I hope you oblige my request..
Thank you..
Reply By Rajagopalan Ranganathan:
The Repl
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