Goods and Services Tax

Clarification regarding applicability of GST on the superior kerosene oil [SKO] retained for the manufacture of Linear Alkyl Benzene [LAB].
15/2018 Dated:- 17-9-2018 West Bengal SGST
GST – States
GOVERNMENT OF WEST BENGAL
DIRECTORATE OF COMMERCIAL TAXES
14, BELIAGHATA ROAD, KOLKATA-700015
TRADE CIRCULAR No. 15/2018 (Circular No. 12/12/2017-GST)
DATED: 17.09.2018
Subject: Clarification regarding applicability of GST on the superior kerosene oil [SKO] retained for the manufacture of Linear Alkyl Benzene [LAB].
Briefly stated, references have been received related to applicability of GST on the superior kerosene oil [SKO] retained for the manufacture of Linear Alkyl Benzene [LAB].
2. In this context, LAB manufacturers have stat

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l quantity of SKO received from refinery is retained and balance quantity ranging from 83%- 85% is returned back to refinery. The retained SKO is towards extraction of Normal Paraffin, which is used in the manufacturing of LAB. In this transaction consideration is paid by LAB manufactures only on the quantity of retained SKO (n-paraffin).
4. In this context, the GST Council in its 22nd meeting held on 06.10.2017 discussed the issue and recommended for issuance of a clarification that in this transaction GST will be payable by the refinery on the value of net quantity of superior kerosene oil (SKO) retained for the manufacture of Linear Alkyl Benzene (LAB).
5. Accordingly, it is here by clarified that, in aforesaid case, GST will be payabl

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TVS Automobile Solutions Ltd. Versus Commissioner of GST and Central Excise, Madurai (Vice-Versa)
Service Tax
2018 (9) TMI 1515 – CESTAT CHENNAI – TMI
CESTAT CHENNAI – AT
Dated:- 17-9-2018
ST/41980/2015, ST/41981/2015, ST/42339/2015 – 42427-42429/2018
Service Tax
Ms. Sulekha Beevi C.S., Member (Judicial) And Shri Madhu Mohan Damodhar, Member (Technical)
For the Appellant : Shri N. Venkataraman, Senior Advocate assisted by Shri M.N. Bharathi, Advocate
For the Respondent : Shri A. Cletus, Addl. Commissioner (AR)
ORDER
PER BENCH
The assessees are inter alia, engaged in servicing of motor vehicles and also trading of automobile parts to franchisees and vehicle customers who avail services at the workshop. Vide a letter dated 1.12.2011, the assessees informed the Central Excise authorities inter alia that
* They are engaged in the business of multi-brand car servicing and also trading of automobile parts to franchisees and to vehicle customers who are availing se

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011, informed the assessees to pay an amount equal to 5% on taxable value determined under Section 67 of the Finance Act, 1994 i.e. 5% of the gross value of the franchisee service and servicing of motor vehicles (both value of goods sold and service charges received). The assessees were reminded by the jurisdictional Superintendent vide letter dated 2.3.2012 asking them to follow the procedure as advised. However, in response, the assessee vide letter dated 8.3.2012, reiterated their reply and further added that:-
* They buy and sell parts as a pure trading activity, which is governed by the definition of „exempted services‟ read with explanation to 1(C) to Rule 6(3) they have remitted 5% amount equivalent to duty after working out differences between sale price and the cost of goods sold;
* They also perform divisible contract of goods and rendition of servicing on motor vehicles. Here again, sale of parts constitute pure trading. They have already remitted a sum equiv

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sought to be re-assessed.
They do not have any other transaction at present to be governed by explanation 1(C) to Rule 6(3) and
Thus, the request to pay a sum equal to duty for the entire sales turnover is clearly impermissible and is sought to be re-assessed.
1.2 A show cause notice dated 11.6.2013 was issued to the assessee inter alia alleging that the goods sold to service recipient of franchisee services and servicing of motor vehicles is not trading of goods but is actually sale of goods in the course of providing taxable service; hence value of such goods sold during the course of providing franchisee service and servicing of motor vehicles it to be included in the gross value of taxable services under Section 67 of the Finance Act, 1994; that the assessees are liable to pay an amount of 5% of gross value of exempted services as per Explanation 1(a) to Rule 6(3) and Rule 6(3A) of CENVAT Credit Rules, 2004 r/w Rule 2(e); in addition to payment of 5% on gross profit of trading a

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vice tax liability for the period April 2011 to March 2012 with interest thereon and also for imposition of penalties under various provisions of law. For subsequent period, April 2012 to June 2012, statement of demand dated 23.4.2014 was issued on identical grounds proposing demand of an amount of Rs. 30,69,417/- with interest thereon and for imposition of penalty under Rule 15 of CENVAT Credit Rules, 2004. Both the show cause notice and the statement of demand were adjudicated in a common order dated 30.6.2015 (impugned order) wherein the tax proposed in the show cause notice / statement of demand were confirmed along with interest. Penalties were also imposed as proposed in the respective show cause notice / statement of demand.
Aggrieved, the assessee is before Tribunal in Appeal No. ST/41980 & 41981/2015 primarily on the following grounds:-
i) Whether the activity of trading could be considered as falling under the definition of exempted service prior to 1.7.2012 and after 1.7.

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Whether in the facts and circumstances of the case penalty under Rule15 can be sustained.
1.6 Department has also come in appeal against the impugned order before this forum in Appeal No.ST/42339/2015 primarily on the following grounds:-
i. It could be seen from the show cause notice dated 11.06.2013 and the statement of demand dated 23.04.2014 that the charge against TVS was that the method adopted by them for payment of amount under Rule 6 of CENVAT Credit Rules, 2004 was wrong as they had adopted the method provided under Explanation 1(C) to Rule 6 instead of Explanation 1(a) to Rule 6 and sought to demand 5% of the total value of spares sold by them during the course of providing the services under MRS/FRA though exempted under Notification No. 12/2003 ST dated 01.03.2003 was covered by the definition of „exempted service‟ value in terms of definition of under cause of Rule 2 of CENVAT Credit Rules, 2004. The argument provided in the notice was that the value of goo

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show that the goods were sold and that there was no evidence on record to show that they had availed CENVAT on such goods by TVS, the value of such goods sold during the course of provision of services were eligible for the exemption under Notification No. 12/2003 ST dated 01.03.2003 for the purpose of service tax. However for the purpose Rule 6(3)(i) of CENVAT Credit Rules, 2004 such value had to be treated as an exempted value „in terms of the definition of exempted service which is defined under Rule 2(e) of the CENVAT Credit Rules, 2004.
iii. Hence, for the purpose of amount payable under Rule 6(3) (i) of the CENVAT Credit Rules, 2004 the exempted value had to be taken in to account and therefore the notice was liable to pay an amount equal to 5% of such exempted services „provided under clauseEUR of Rule 2 of CENVAT Credit Rules, 2004. The adjudicating authority has not given any findings either to support this aspect or counter the arguments of the notice and has s

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types of activities done by them and also in particular regarding the manner of reversal of CENVAT credit taken in respect of such contracts.
(c) The adjudicating authority instead of providing arguments as to why the method adopted by TVS for payment of amount under Rule 6(3) of CENVAT Credit Rules, 2004 was wrong, has elaborately gave findings to the effect that the value of materials sold by them were to be included in the value of services as per Section 67 of the Act ibid and that as the Assessee had not fulfilled the conditions stated in the notification No. 12/2003 St dated 01.03.2003 namely “credit of duty paid on goods and materials sold has been taken under provisions of CENVAT Credit Rules, 2004 and not paid the amount equal to such credit availed before the sale of such goods and materials” were not eligible for the exemption provided in the said notification. In the further paras also the adjudicating authority had elaborately discussed citing the instructions of the Boa

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ween sale price and the purchase price, that no input credit is taken and hence no duty is payable.
2.2 In reply to the show cause notice, the appellant had inter alia made the following submissions:-
2.3 The following are some of the submissions taken by the appellants in their reply to Show Cause Notice:-
(i) The allegation that the method of calculation of amount payable at the rate of 5% is not correct is not tenable in law as they have paid the said amount based on explanation 1(c) of Rule 6(d) of the Cenvat Credit Rules.
(ii) The appellants buy and sell parts as a pure trading activity which is covered under exempted services „read with rule 6(3) and 6(3D).
(iii) The appellants render service under divisible contract for sale of goods and service of motor vehicles. They have not claimed any exemption nor benefit on non-taxable sale transaction. Therefore Cenvat Credit Rule 6(1) and Rule 6(3) do not arise/ They provide pure labour and service contracts which do not i

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letter written to the Deputy Commissioner dated 30.012014 before issuing the statement of demand wherein the case of Ketan Motors td (v) CESTAT, Nagpur was enclosed, in which it was held that, if a transaction involves only sale of parts, question of levying service tax would not arise at all”.
(viii) Since Cenvat Credit Rules themselves use the expression trading as synonymous with sale as seen from the explanation 1(c)to Cenvat Credit Rules 6(3D) as referred to earlier, it is clear that the subject activity of sale of spare parts sold in the course of providing of the service to the vehicles is nothing but trading and falls under definition of exempted service prior to 01.07.2012 and that is the reason why the appellants have chosen to pay 5% of the value of exempted service i.e. on the difference between sale price and cost of goods sold or 10% on the cost of goods sold whichever is more. Similarly after 01.07.2012 for the same reason the appellants have treated sale/trading activ

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y are required to pay an amount of 5% on the value of exempted service and at the same time he gives a finding that in addition to the payment of 5% of the gross value of exempted service the appellants should also pay 5% of the gross profit of the trading activity. On the one hand, Commissioner does not consider the activity of sale of parts as „trading‟ falling under the exempted service and on the other hand for the purpose of demand, he treats the same as exempted service and invokes the provision of Cenvat Credit Rules 6(3) and explanation 1(c) to Cenvat Credit Rule 6(3D).
(xi) In para 21 of the impugned order the Commissioner gives a finding that the spares are not directly sold to the customers and there is no sale taking place over the counter and the customer brings a vehicle to the servicing station where the service engineer inspects the vehicles and prepares the job card with the details of the vehicle and the spares are directly delivered to the servicing eng

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rules and Appellants genuinely believed that they had compiled with provisions of Cenvat Credit Rules and provision relating to valuation.
(xiv) Therefore for the above reasons the resort to Cenvat Credit Rule 15 for the imposition of penalty is improper, illegal and unsustainable.
3. On the other hand, ld AR Shri A. Cletus reiterates the grounds of appeal. He also made submissions which can be broadly summarized as under:-
3.1 He submits that it is evident that the adjudicating authority instead of providing arguments as to why the method adopted by the assessee for payment of amount under Rule 6(3) of CCR was wrong, has elaborately gave findings to the effect that the value of materials sold by them were to be included in the value of services as per section 67 of the act ibid and that as the Assessee had not fulfilled the conditions stated in the notification No 12/2003 ST dated 01.03.2003 namely “credit of duty paid on goods and materials sold has been taken under the provision

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registration number which was serviced in the sale invoice also thus connecting the sales to the services provided by them. In respect franchisee service also the franchise was not given for servicing of motor vehicles under the brand name of TVS and the spares required for such service were also sold by TVS. Thus in respect both types, the sale had a direct connection to the services rendered by TVS and so the value of such goods said would form part of the gross value of service in terms of section 67. But as there is clear evidence in the invoice to show that the goods were sold and that there was no evidence on record to show that they had availed Cenvat on such goods by TVS, the value of such goods sold during the course of provision of services were eligible for the exemption under Notification No12/2003 ST dated 01.03.2003 for the purpose of service tax However for the purpose Rule 6(3) (i) of CCR such value had to be treated as an „exempted value‟ terms of the defin

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first take up the appeal of the department. The main grievance of the department is that the impugned order is a non-speaking order without giving detailed findings either to support or counter the arguments of the noticee but has simply confirmed demands proposed in the notice and the statement of demand. We find that the show cause notice had alleged in para 5.1 that “value of goods (sold during taxable service) is to be included in the gross value of taxable service under section 67 of the Finance Act, 1994”. The same paragraph also alleges that “assessees are liable to pay an amount of 5% of gross value of exempted service as per explanation 1(a) to rule 6(3) and 6(3A) of CENVAT Credit Rules, 2004. In para 5.1 (iv) and (v), there is a proposition if the assessee opts to pay an amount of 5% of value of exempted goods under Rule 6(3)(i) of CENVAT Credit Rules, 2004, they are required to pay an amount equivalent to 5% of the gross value (both value of goods sold and service charges r

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003-ST dated 1.3.2003 has been fulfilled by the assessee in this case. Discernibly, non-fulfillment of Notification No. 12/2003-ST was not an allegation or charge raised in the show cause notice. True, para 4.4 of the notice dated 11.6.2013 did reproduce a portion of the Notification 12/2003-ST, however, without making any reference or connection to the facts of the case or making any allegation that the conditions of the notification have been violated by the department. We further find that in para 19, the adjudicating authority has made a reference to Circular No.96/7/2007-ST dated 23.8.2008 which had inter alia clarified that where spare parts are used by a service station for servicing of vehicles, service tax should be levied on the entire bill including the value of the spare parts. That however service provider is entitled to take input credit of excise duty paid on such parts or any goods used in providing service wherein value of such goods has been included in the bill. We a

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aken and hence no duty is payable”.
5.4 The assessee also, in their grounds of appeal and other contentions made by them, have consistently found fault with the adjudicating authority which have already been set out above. For example, the appellant has submitted that the Commissioner has contradicted in para 19 of the impugned order, the reason adopted for the demand in question. So also appellant has contended that the reasoning adopted by the Commissioner in para 21 based on alleged bifurcation of value and service of goods is not correct. Appellant has also argued that in para 24 of the impugned order, the Commissioner has totally misunderstood the entire concept of sale and service and inclusion of sale value of the goods in the taxable value of service.
6. From the discussions and findings herein above, it is evident that the order of the adjudicating authority has not addressed the allegations and concerns raised in the show cause notice but has instead veered off into other a

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Modification of the procedure for interception of conveyances for inspection of goods in movement, and detention, release and confiscation of such goods and conveyances, as clarified in CCT Circular No. GST-02/2018-19 dated 16.04.2018
05/2018-19 Dated:- 17-9-2018 Karnataka SGST
GST – States
Government of Karnataka
(Department of Commercial Taxes)
No. KSA/GST/CR-108/2017-18
Office of the Commissioner of Commercial Taxes
Vanijya Therige Karyalaya, Gandhinagar,
Bengaluru-560009, Dated: 17-09-2018
COMMISSIONER OF COMMERCIAL TAXES CIRCULAR No. GST-05/2018-19
Subject: regarding
Attention is invited to CCT Circular No. GST-02/2018-19 dated 16th April, 2018 vide which the procedure for interception of conveyances for inspection of goods in movement, and detention, release and confiscation of such goods and conveyances was specified.
2. In order to clarify certain issues regarding the specified procedure in this regard and in order to ensure uniform implementation of the pro

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ting to evasion of tax is made available subsequently. Since the requisite FORMS are not available on the common portal currently, any action initiated by the central tax officers is not being intimated to the State tax officers and vice-versa, doubts have been raised as to the procedure to be followed in such situations.
(i) In this regard, it is clarified that the hard copies of the notices/orders issued in the specified FORMS by a tax authority may be shown as proof of initiation of action by a tax authority by the transporter/registered person to another tax authority as and when required.
(ii) Further, it is clarified that only such goods and/or conveyances should be detained/confiscated in respect of which there is a violation of the provisions of the GST Acts or the rules made thereunder.
Illustration: Where a conveyance carrying twenty-five consignments is intercepted and the person-in-charge of such conveyance produces valid e-way bills and/or other relevant documents in re

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8377; 50,000/- should carry a copy of documents viz., invoice/bill of supply/delivery challan/bill of entry and a valid e-way bill in physical or electronic form for verification. In case such person does not carry the mentioned documents, there is no doubt that a contravention of the provisions of the law takes place and the provisions of section 129 and section 130 of the KGS T Act are invocable. Further, it may be noted that the non-furnishing of information in Part B of FORM GST EWB-01 amounts to the e-way bill becoming not a valid document for the movement of goods by road as per Explanation (2) to rule 138(3) of the KGS T Rules, except in the case where the goods are transported for a distance of upto fifty kilometres within the State to or from the place of business of the transporter to the place of business of the consignor or the consignee, as the case may be.
6. Whereas, section 129 of the KGST Act provides for detention and seizure of goods and conveyances and their releas

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that the error in the PIN code should not have the effect of increasing the validity period of the e-way bill;
c) Error in the address of the consignee to the extent that the locality and other details of the consignee are correct;
d) Error in one or two digits of the document number mentioned in the e-way bill'
e) Error in 4 or 6 digit level of HSN where the first 2 digits of HSN are correct and the rate of tax mentioned is correct;
f) Error in one or two digits/characters of the vehicle number.
8. In case of the above situations, penalty to the tune of ₹ 500/- each under section 125 of the KGST Act and the Central Goods and Services Tax Act should be imposed (Rs. 1000/- under the Integrated Goods and Services Tax Act) in FORM GST DRC-07 for every consignment. A record of all such consignments where proceedings under section 129 of the KGST Act have not been invoked in view of the situations listed in paragraph 7 above shall be sent by the proper officer to his controlling

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Governor of Himachal Pradesh is appoint the 1st day of October, 2018, as the date on which the provisions of section 52 of the HP Goods and Services Tax Act, 2017 shall come into force
EXN-F(10)-24/2018 – 51/2018-State Tax Dated:- 17-9-2018 Himachal Pradesh SGST
GST – States
Himachal Pradesh SGST
Himachal Pradesh SGST
EXCISE AND TAXATION DEPARTMENT
NOTIFICATION No. 51/2018-State Tax
Shimla-2, the 17th September, 2018
No. EXN-F(10)-24/2018-Loose.-In exercise of the powers confer

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Himachal Pradesh Goods and Services Tax (Tenth Amendment) Rules, 2018
EXN-F(10)-24/2018 – 49/2018-State Tax Dated:- 17-9-2018 Himachal Pradesh SGST
GST – States
Himachal Pradesh SGST
Himachal Pradesh SGST
EXCISE AND TAXATION DEPARTMENT
NOTIFICATION No. 49/2018-State Tax
Shimla-2, the 17th September, 2018
No. EXN-F(10)-24/2018-Loose.-In exercise of the powers conferred by section 164 of the Himachal Pradesh Goods and Services Tax Act, 2017 (10 of 2017), the Governor of Himachal Pradesh is pleased to make the following rules further to amend the Himachal Pradesh Goods and Services Tax Rules, 2017, namely:-
1. (1) These rules may be called the Himachal Pradesh Goods and Services Tax (Tenth Amendment) Rules, 2018.
(2) They shall come into force on the date of their publication in the Official Gazette.
2. In the FORMS to the Himachal Pradesh Goods and Services Tax Rules, 2017, after FORM GSTR-9A, the following shall be inserted, namely:-
“FORM GSTR-9C
See rule 80(3)

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+)
G
Turnover from April 2017 to June 2017
(-)
H
Unbilled revenue at the end of Financial Year
(-)
I
Unadjusted Advances at the beginning of the Financial Year
(-)
J
Credit notes accounted for in the audited Annual Financial Statement but are not permissible under GST
(-)
K
Adjustments on account of supply of goods by SEZ units to DTA Units
(-)
L
Turnover for the period under composition scheme
(-)
M
Adjustments in turnover under section 15 and rules thereunder
(+/-
)
N
Adjustments in turnover due to foreign exchange fluctuations
(+/-
)
O
Adjustments in turnover due to reasons not listed above
(+/-
)
P
Annual turnover after adjustments as above
< Auto >
Q
Turnover as declared in Annual Return (GSTR9)
R
Un-Reconciled turnover (Q – P)
AT1
6
Reasons for Un – Reconciled difference in Annual Gross Turnover
A
B
C
Reason 1
<< Text >>
Reason 2
<< Text >>
Reason 3
<< Text >>
7
Reconciliation of Taxable Turnover
A
Annual turnover af

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be paid as per tables above
< Auto >
< Auto >
< Auto >
< Auto >
Q
Total amount paid as declared in Annual Return (GSTR 9)
R
Un-reconciled payment of amount
PT 1
10
Reasons for un-reconciled payment of amount
A
B
Reason 1
<< Text >>
Reason 2
<< Text >>
C
Reason 3
<< Text >>
11
Additional amount payable but not paid (due to reasons specified under Tables
6,8 and 10 above)
To be paid through Cash
Description
Taxable Value
Central tax
State tax / UT tax
Integrated tax
Cess, if applicabl e
1
2
3
4
5
6
5%
12%
18%
28%
3%
0.25%
0.10%
Interest
Late Fee
Penalty
Others
(please specify)
Pt.
Reconciliation of Input Tax Credit (ITC)
IV
12
Reconciliation of Net Input Tax Credit (ITC)
A
ITC availed as per audited Annual Financial Statement for the State/ UT (For multi-GSTIN units under same PAN this should be derived from books of accounts)
B
ITC booked in earlier Financial Years claimed in current
Financial Year
(+)
C
ITC boo

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es
(including postage etc.)
Repair and Maintenance
N
Other Miscellaneous expenses
O
P
Capital goods
Any other expense 1
Q
Any other expense 2
R
Total amount of eligible ITC availed
<>
S
ITC claimed in Annual Return (GSTR9)
T
Un-reconciled ITC
ITC 2
15
Reasons for un – reconciled difference in ITC
A
Reason 1
<< Text >>
B
C
Reason 2
<< Text >>
Reason 3
<< Text >>
16
Tax payable on un-reconciled difference in ITC (due to reasons specified in 13 and 15 above)
Description
Amount Payable
Central Tax
State/UT Tax
Integrated Tax
Cess
Interest
Penalty
Pt.
V
Auditor's recommendation on additional Liability due to non-reconciliation
To be paid through Cash
Description
Value
Central tax
State tax / UT tax
Integrated tax
Cess, if applicabl e
1
2
3
4
5
6
5%
12%
18%
28%
3%
0.25%
0.10%
Input Tax Credit
Interest
Late Fee
Penalty
Any other amount paid for supplies not included in Annual Return (GSTR 9)
Erroneous refun

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ent is the financial year for which the reconciliation statement is being filed for.
4. Part II consists of reconciliation of the annual turnover declared in the audited Annual Financial Statement with the turnover as declared in the Annual Return furnished in FORM GSTR-9 for this GSTIN. The instructions to fill this part are as follows :-
Table No.
Instructions
5A
The turnover as per the audited Annual Financial Statement shall be declared here. There may be cases where multiple GSTINs (State-wise) registrations exist on the same PAN. This is common for persons / entities with presence over multiple States. Such persons / entities, will have to internally derive their GSTIN wise turnover and declare the same here. This shall include export turnover (if any). It may be noted that reference to audited Annual Financial Statement includes reference to books of accounts in case of persons / entities having presence over multiple States.
5B
Unbilled revenue which was recorded in the

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ate value of credit notes which were issued after 31st of March for any supply accounted in the current financial year but such credit notes were reflected in the annual return (GSTR-9)shall be declared here.
5F
Trade discounts which are accounted for in the audited Annual Financial Statement but on which GST was leviable(being not permissible) shall be declared here.
5G
Turnover included in the audited Annual Financial Statement for April 2017 to June 2017 shall be declared here.
5H
Unbilled revenue which was recorded in the books of accounts on the basis of accrual system of accounting during the current financial year but GST was not payable on such revenue in the same financial year shall be declared here.
5I
Value of all advances for which GST has not been paid but the same has been recognized as revenue in the audited Annual Financial Statement shall be declared here.
5J
Aggregate value of credit notes which have been accounted for in the audited Annual Financial St

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rence between the turnover reported in the Annual Return (GSTR9) and turnover reported in the audited Annual Financial Statement due to foreign exchange fluctuations shall be declared here.
5O
Any difference between the turnover reported in the Annual Return (GSTR9) and turnover reported in the audited Annual Financial Statement due to reasons not listed above shall be declared here.
5Q
Annual turnover as declared in the Annual Return (GSTR 9) shall be declared here. This turnover may be derived from Sr. No. 5N, 10 and 11 of Annual Return (GSTR 9).
6
Reasons for non-reconciliation between the annual turnover declared in the audited Annual Financial Statement and turnover as declared in the Annual Return (GSTR 9) shall be specified here.
7
The table provides for reconciliation of taxable turnover from the audited annual turnover after adjustments with the taxable turnover declared in annual return (GSTR-9).
7A
Annual turnover as derived in Table 5P above would be auto-popula

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and the taxable turnover declared in Table 7F shall be specified here.
5. Part III consists of reconciliation of the tax payable as per declaration in the reconciliation statement and the actual tax paid as declared in Annual Return (GSTR9). The instructions to fill this part are as follows :-
Table No.
Instructions
9
The table provides for reconciliation of tax paid as per reconciliation statement and amount of tax paid as declared in Annual Return (GSTR 9). Under the head labelled ―RC‖, supplies where tax was paid on reverse charge basis by the recipient (i.e. the person for whom reconciliation statement has been prepared ) shall be declared.
9P
The total amount to be paid as per liability declared in Table 9A to 9O is auto populated here.
9Q
The amount payable as declared in Table 9 of the Annual Return (GSTR9) shall be declared here. It should also contain any differential tax paid on Table 10 or 11 of the Annual Return (GSTR9).
10
Reasons for non-reconcili

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l Statement of earlier financial year(s)but availed in the ITC ledger in the financial yearfor which the reconciliation statement is being filed for shall be declared here. This shall include transitional credit which was booked in earlier years but availed duringFinancial Year 2017-18.
12C
Any ITC which has been booked in the audited Annual Financial Statement of the current financial year but the same has not been credited to the ITC ledger for the said financial year shall be declared here.
12D
ITC availed as per audited Annual Financial Statement or books of accounts as derived from values declared in Table 12A, 12B and 12C above will be auto-populated here.
12E
Net ITC available for utilization as declared in Table 7J of Annual Return (GSTR9) shall be declared here.
13
Reasons for non-reconciliation of ITC as per audited Annual Financial Statement or books of account (Table 12D) and the net ITC (Table12E) availed in the Annual Return (GSTR9) shall be specified here.
14
T

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yable due to reasons specified in Table 13 and 15 above shall be declared here.
7. Part V consists of the auditor's recommendation on the additional liability to be discharged by the taxpayer due to non-reconciliation of turnover or non-reconciliation of input tax credit. The auditor shall also recommend if there is any other amount to be paid for supplies not included in the Annual Return. Any refund which has been erroneously taken and shall be paid back to the Government shall also be declared in this table. Lastly, any other outstanding demands which is recommended to be settled by the auditor shall be declared in this Table.
8. Towards, the end of the reconciliation statement taxpayers shall be given an option to pay their taxes as recommended by the auditor.
PART – B- CERTIFICATION
I. Certification in cases where the reconciliation statement (FORM GSTR-9C) is drawn up by the person who had conducted the audit:
* I/we have examined the-
(a) balance sheet as on …&he

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observations/ comments / discrepancies / inconsistencies; if any:
…………………………………….
…………………………………….
3. (b) *I/we further report that, –
(A) *I/we have obtained all the information and explanations which, to the best of *my/our knowledge and belief, were necessary for the purpose of the audit/ information and explanations which, to the best of *my/our knowledge and belief, were necessary for the purpose of the audit were not provided/partially provided to us.
(B) In *my/our opinion, proper books of account *have/have not been kept by the registered person so far as appears from*my/ our examination of the books.
(C) I/we certify that the balance sheet, the *profit and loss/income and expenditure account and the cash flow Statement are *in agreement/not in agreement with the books of acc

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ellip;……………………………………………………………………
(c) ……………………………………………………………………………………
………………………………………
………………………………………
**(Signature and stamp/Seal of the Auditor)
Place: ……………
Name of the signatory …………………
Membership No………………
Date: ………&hellip

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ip;…………. along with a copy of each of :-
(a) balance sheet as on ………
(b) the *profit and loss account/income and expenditure account for the period beginning from ………..…to ending on …….,
(c) the cash flow statement for the period beginning from ……..…to ending on ………, and
(d) documents declared by the said Act to be part of, or annexed to, the *profit and loss account/income and expenditure account and balance sheet.
2. I/we report that the said registered person-
*has maintained the books of accounts, records and documents as required by the
IGST/CGST/<<>>HP GST Act, 2017 and the rules/notifications made/issued thereunder
*has not maintained the following accounts/records/documents as required by the IGST/CGST/<<>>HP GST Act, 2017 and the rules/notifications made/issued thereunder:
1.
2.
3.
3. The documents required to be furnished under

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p;………………………….…………………………….………………………
………………………………………
**(Signature and stamp/Seal of the Auditor)
Place: ……………
Name of the signatory …………………
Membership No………………
Date: ……………
Full address ………………………"
By order,
JAGDISH CHANDER SHARMA,
Principal Secretary (E&T).
Note:- The principal rules were published notified vide notification No. EXN-F(10)-13/2017, dated the 27th June, 2017, published in the Gazette of Himachal Pradesh vide EXN-F(10)- 13/20

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M/s. Birla Cotsyn (I) Ltd. Versus CCE & GST, Nagpur
Service Tax
2018 (9) TMI 1147 – CESTAT MUMBAI – TMI
CESTAT MUMBAI – AT
Dated:- 17-9-2018
ST/85750/18 – A/87298/2018
Service Tax
Dr. Suvendu Kumar Pati, Member (Judicial)
For the Appellant : Ms. Lalita Phadke, Advocate
For the Respondent : Shri Suresh, (AR)
ORDER
Confirmation of penalty and invocation of extended period after discharge of duty liability along with interest by the Commissioner (Appeals), CE&GST, Nagpur in his order No. NGP/EXCUS/000/APPL/540/17-18 dated 28.11.2017 is being challenged in this appeal.
2. Facts giving rise to the present appeal can be summed up as violation of provision contained under Section 66A of the Finance Act, 1994 by the appellant in not paying service tax of `12,78,540/- against payment made to overseas commission agent to the tune of `1,31,89,860/- for services falling under category of Business Auxiliary Service. Under the reverse charge mechanism, appellant company is

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ong with interest has already been made by the appellant and they had abandoned their right to contest the tax liability when the matter was before the Commissioner (Appeals). In the present appeal, the appellant is only contesting penalty and the invocation of extended period since appellant, being pointed out by the department, immediately paid the amount of service tax along with interest much prior to the issue of show-cause notice and the said payment being made to the overseas party was duly disclosed in the books of accounts of the appellant, there was no suppression or malafide intention on the part of the appellant to evade tax. He pleads that appellant was under the bonafide belief that the said activity was not chargeable and being pointed out by the auditor, it discharged the tax liability and interest as well as informed the department for which it is entitled to the benefit of Section 73(3) of the Finance Act, 1994. In support of his argument several case laws are cited b

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n in the appellant's case, lenient view may be taken in respect of penalty imposed on the appellant.
4. Ld. AR on the contrary, in citing judicial decisions reported in 2013 (30) STR 3 (Guj)., 2015(39) STR 386 (Mad.), 2015 (38) STR 249 (Tri-Bang.) argued that duty paid by the assessee prior to issue of show-cause would not ipso facto alter the liability of mandatory statutory penalty. He further argued that when appellant tacitly conceded suppression of fact with intent to evade payment of service tax, though paid prior to issue of show-causes but paid only after investigation launched by the department will not provide him the benefit of section 80 of the Finance Act, 1994 and in the instant appeal, contrary to the averment of the appellant that such irregularity was pointed out in the course of routine audit, such evasion of duty was in fact discovered by the preventive branch officer on the basis of intelligence report as can be seen from the show-cause, Order-in-Appeal and order-i

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oad and not in India in which case, service tax is not leviable under reverse charge mechanism. Further, it lays emphasis that taxable event is on rendering of services and not on the person for which government cannot levy service tax on the services provided abroad and not received in India. Hence service tax demanded and commission paid to overseas parties for services rendered abroad needs to be interpreted in its true spirit but without explaining the indulgence of the company and merely quoting the sections of law in the impugned show-cause notice, order-in-original was passed that was being confirmed by the Commissioner (Appeals). The appellant further submitted that when there is a clear belief that no liability of service tax is existing, both while computing the service tax payable and filing periodic returns as assumed to be required by law, there would not be any liability towards penalty and interest for non-disclosure of the details in the periodic returns.
6. These abov

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o register and to maintain books of accounts etc.
7. The contention of the appellant that there was no ill intention that can be attributed to evade tax since all the tax liabilities were addressed with due payment of interest after the same being identified by way of audit. This being the circumstantial situation on record, it is imperative to have a look on the provisions contained in Finance Act, 1994 that enables assessment beyond the extended period on grounds of suppression, non-disclosure etc. and to analyse if there was any ill intention on the part of the appellant to evade tax so as to impose penalty contemplated under Section 78 of Finance Act, 1994.
8. Proviso to Section 73 reads as follows:-
“PROVIDED that where any service tax has not been levied or paid or has been short-levied or short-paid or erroneously refunded by reason of-
(a) fraud; or
(b) collusion; or
(c) wilful mis-statement; or
(d) suppression of facts; or
(e) contravention of any of the provi

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with effect from 08.05.2010 and sub-rule 4 has all along been existing since implementation of Finance Act, 1994. Therefore, there is no need to venture into such debate that explanation 2 providing non-imposition of penalty under any of the provisions of Act and Rule on fulfilment of requirement of sub-rule(3) would have application to sub-rule 4 since subrule 4 starts with an non-obstinate clause “nothing contained in sub-rule 3 shall apply” to a case where service tax has not been levied or paid or short levied or short paid or erroneously refunded by reason of those five grounds mentioned above under proviso to sub-rule (1) of Rule 73.
9. Be that as it may, it is now to be seen as to how this practice of fraud, collusion, submission of “wilful” misstatement or suppression of fact vis-a-vis contravention of provisions of this chapter and rules made thereunder “with intend to evade tax payment” is to be established and on whom the burden lies. In an adversarial judicial system and a

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e the department has levied the service tax on the consideration that appellant is residing in India.
10. During the course of hearing, the ld. Counsel for the appellant has placed his reliance on the Circular no. 137/167/2006/cx-4 dated 03.10.2007 and pleaded that in respect of payment of interest and penalty along with service tax in full, all proceeding against the appellant should have been closed but a close reading of the statute would reveal that in respect of Section 73(1)(a) of the Finance Act, 1994 adjudication proceeding can be concluded in cases of wilful suppression, fraud, collusion etc. if along with tax and interest, penalty equal to 25% of service tax was voluntarily paid by the assessee even one month from the date of issue of show-cause, which in the instant case is not done to make that circular applicable for the appellant. Similarly, in the case law submitted by the ld. AR, as referred supra, neither any reference is available to the circular dated 03.10.2007 nor

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o situation for which, a limitation period of six months may apply. In our opinion, the main body of the Section, in fact, contemplates ordinary default in payment of duties and leaves cases of collusion or wilful misstatement or suppression of facts, a smaller, specific and more serious niche, to the proviso. Therefore, something more must be shown to construe the acts of the appellant as fit for the applicability of the proviso.”
11. In view of the above facts and circumstances, and in view of the fact that parameters of proviso to Section 73 and ingredients constituting suppression of fact by the appellant has not been made out and the same had not been established by the respondent department before the authorities adjudicating the matter, it can safely be concluded that Section 4 would have no application to the case of the appellant attracting penalty, in which case explanation 2 to sub-section (3) of Section 73 will have its effect. Hence the order-
ORDER
The appeal is allowe

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Extension of time limit for submitting the declaration in FORM GST TRAN-1 under rule 117(1A) of the Central Goods and Service Tax Rules, 2017 in certain cases
Order No. 4/2018 Dated:- 17-9-2018 Clarifications / Instructions / Orders
GST
F. No. 349/58/2017-GST
Government of India
Ministry of Finance
Department of Revenue
Central Board of Indirect Taxes and Customs
***
New Delhi, the 17th September, 2018
Order No. 4/2018-GST
Subject: Extension of time limit for submitting the decl

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Cenvat Credit Migration Restriction for First-Stage Dealers Deemed Unconstitutional; Section 140(3)(iv) Struck Down.
Case-Laws
GST
Constitutional validity of restriction on migration of Cenvat Credit to GST – Transitional Credit – first stage dealers in excise Regime – prescribed documents (Invoices) older than twelve months – clause (iv) of subsection (3) of section 140 is unconstitutional, and the same is struck down.
TMI Updates – Highlights, quick notes, marquee, annotation, new

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Sub-Contractor for Railway Works Eligible for 12% GST Concessional Rate on Composite Supply Services.
Case-Laws
GST
Rate of tax – sub-contractor – even the sub-contractor providing services o

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How to claim receipt of business promotion expenses to be filed as exemption under GST
Query (Issue) Started By: – Usha RaoJ Dated:- 15-9-2018 Last Reply Date:- 27-10-2018 Goods and Services Tax – GST
Got 3 Replies
GST
We have received incentive on sales from our principles. Also, during final calculation, our principals debit from the sales achieved, the amount in proportion to the percentage of incentive received. ( Say, if 10 lakhs is the sales incentive ( over and above normal operating discounts), this amount will be reduced to the extent in the subsequent year. Our Auditors say that this payment credit received to our account is taxable under GST and we are liable to pay now. When we enquired with our principals, they sai

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hence if he get or does not get input he is safe, as the Liability to discharge GST on the said “Business Promotion – Revenue (From agents angle) is always on agent and not on principle
Hence either issue and Debit Note for taxes (Against CN As being received from Principle or Its better to Raise Invoice and File GSTR 1)/ GSTR 3B
In GST Even on Free Supplies (FOC Sales) GST is levied and hence the above transaction (Be it any nomenclature) is subject to GST.
Others Comments Highly Appreciable.
Reply By DR.MARIAPPAN GOVINDARAJAN:
The Reply:
If any discount and incentives are given in the course of business, there shall be an agreement between them in this regard. If it is so the same should be indicated in the invoice. In such cases GST

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gst for services -reg
Query (Issue) Started By: – Ramakrishnan Seshadri Dated:- 15-9-2018 Last Reply Date:- 19-9-2018 Goods and Services Tax – GST
Got 6 Replies
GST
Dear Sir,
We have done a service for repair work in India relating to a Foreign Customer . He will be paying the amount in Indian rupees and he wants to issue invoice in his name and foreign address. Now our question is whether gst is applicable for service made or what is the procedure to be followed. can be treated as export of service and invoice can be raised against lut or how to proceed.
Experts please guide
Thanks & REgards,
S.Ramakrishnan
Reply By KASTURI SETHI:
The Reply:
In my view it is not export of service.
Reply By Rajagopalan Ranganathan:
The

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territory (India) though the customer is not residing in India. Therefore supply of service by you will not qualify as export of service.
Reply By Yash Jain:
The Reply:
Dear Sir,
In GST Place of Service Provisions, if the Supply for the Service is rendered in India, then irrespective of the Location of the Recipient, it will be always be a “Service Rendered in India” – Reason & Logic – GST Being a destination & Consumption based Tax.
For Taxes : Yes GST Will be charged.
For Invoices : Yes you can raise the Invoice in Name of the Foreign Customer (Amendment has been made on 29.08.2018) were in bill to and Ship to Provision is being made applicable to Invoice also.
Regards,
Reply By Yash Jain:
The Reply:
Dear Sir,
The Bill to and Shi

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In Re: M/s. Lindstorm Services India Private Limited
GST
2018 (12) TMI 1275 – AUTHORITY FOR ADVANCE RULING, MAHARASHTRA – 2019 (20) G. S. T. L. 671 (A. A. R. – GST)
AUTHORITY FOR ADVANCE RULING, MAHARASHTRA – AAR
Dated:- 15-9-2018
GST-ARA-43/2018-19/B-115
GST
SHRI B.V. BORHADE, AND SHRI PANKAJ KUMAR, MEMBER
PROCEEDINGS
(Under section 98 of the Central Goods and Services Tax Act, 2017 and the Maharashtra Goods and Services Tax Act, 2017)
The present application has been filed under section 97 of the Central Goods and Services Tax Act,
2017 and the Maharashtra Goods and Services Tax Act, 2017 [hereinafter referred to as “the CGST Act and MGST Act”] by Lindstrom Services India Private Limited, the applicant, seeking an advance ruling in respect of the following questions.
1. What is the classification of the activities transactions carried out by the Applicant Company as mentioned in the statement of facts (Annexure-I). In particular,
* Do these activities / t

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supply” for the purpose of section 2 (90) of CGST Act?
(ii) What will the applicable rate of GST?
(iii) Whether the conclusion (i.e. the transaction is a 'composite supply') will remain the same if in addition to the services covered in question no. 2 above Applicant Company also provides additional service of renting of locker as part of the same consideration?
At the outset, we would like to make it clear that the provisions of both the CGST Act and the MGST Act are the same except for certain provisions. Therefore, unless a mention is specifically made to such dissimilar provisions, a reference to the CGST Act would also mean a reference to the same provision under the MGST Act. Further to the earlier, henceforth for the purposes of this Advance Ruling, a reference to such a similar provision under the CGST Act/ MGST Act would be mentioned as being under the “GST Act”.
02. FACTS AND CONTENTION – AS PER THE APPLICANT
The submissions, as reproduced verbatim, could be seen th

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r the workwear to its customers on need basis.
3. At present, the Applicant Company has operations in multiple locations in India i.e. Faridabad, Panchkula (Haryana), Mumbai, Pune (Maharashtra), Hyderabad (Telangana), Vishakhapatnam (Andhra Pradesh), Chennai (Tamil Nadu), Kolkata (West Bengal), Bangalore (Karnataka), Tinsukia (Assam) and Vadodara (Gujarat).
Towards carrying out the aforesaid activities, the Applicant Company enters into agreements with its customers for leasing / renting of workwear and services ancillary to the renting of workwear such as transportation, weekly cleaning and repairs etc. of the workwear and other optional services such as lockers, modification etc.
5. Broad types of activities carried out by the Applicant are as follows:
Sr.No.
Type of activities carried out by the Applicant
Remuneration structure
1.
Renting of workwear
1. Weekly rental is charged for renting of work wear and ancillary Services.
2. Additional fees is charged
For any addition

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f locker, sales of logo(s) and nametag(s) and modification to the workwear etc. as per customer(s) specification. Lindstrom India chargers separate consideration for any additional service provided to the customer.
6. It is noteworthy that renting of workwear are usually long-term i.e. perpetual or for 12 months period and the same may be extended as per the mutual consent of the parties involved. It is also noteworthy that in the event of termination of the agreement between the customer and Lindstrom India, the customer will be liable to purchase all the garments that have been in use and the stock maintained for him.
7. In the below paragraphs we have discussed the business activities of the Applicant Company in detail.
B.1 Renting/leasing of workwear and other ancillary services provided for a single consideration
8. Renting of workwear is the main/ primary business activity undertaken by Lindstrom India. Lindstrom India provides workwear on rent to its customer against weekly

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ar. These equipment's are to be returned back to Lindstrom by the customer on termination of the agreement.
b. Lindstrom India is also providing services of weekly servicing of the workwear to its customer. Servicing of workwear includes washing, inspection, finishing and minor repairs of the workwear. Lindstrom India and its customer agree to workwear to a collection point which is in agreement of both the parties at a schedule time on weekly basis. In case after servicing of the workwear they are found to be not of the quality standards of Lindstrom India, Lindstrom India replaces such workwear
Note No. 1: – For the activities mentioned above in para B.1 Lindstrom India charges a single consideration from its customer on weekly basis.
Note No. 2: – In some other agreements Lindstrom India may also provide additional service of renting of locker as part of the service for a single consideration. Renting of lockers has been discussed in detail in point no. 11(a) of para B.2 bel

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stomer's logo on the workwear, the Applicant Company charges a fixed amount from the client.
C. Replacement/exchange of the workwear: In case the workwear provided to the customer become unfit for use due to normal wear and tear or customer wants to replace the workwear originally rented to him against a new collection of workwear having new improved design, Lindstrom India on the request of the customer replaces/ exchanges such workwear.
Lindstrom India charges redemption price from its customer for replacement of workwear. Price to be charged for such replacement keeping in mind the age of the workwear provided to the customer.
d. Modification of workwear: Lindstrom India offers services of modifications of workwear to its customer such as adding extra pockets to the garments, shortening of sleeves, addition of extra push buttons on the garments etc. alteration and modifications are done as per the specific requirement of customer. Alteration/ modification are chargeable additi

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quick wear.
* Product is lost while in the customer's possession.
* Product returned to the warehouse has undergone modifications requested by the customer, due to which it cannot be returned to its original form.
* Product returned to the warehouse cannot be rented further because of its condition
f. Changing number of garments: Customer may increase or decrease the number originally rented. The agreed number of workwear can be either be increased by placing additional order with the Applicant Company or decreased by returning the excess garments. In case, the service volume leased from the Applicant Company is reduced by more than 30% from the highest volume of the past 6 months, customer will be required to pay compensation to Lindstrom India in accordance with redemption policy.
g. In the above para we have explained/covered different types of business activities entered by the Applicant Company for your reference and/or understanding of the business of the Applicant

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eave to add, alter or amend all or any of the submissions mentioned above and to lead such oral and/ or documentary evidence as may be considered necessary.
Eligibility to file application for Advance ruling
2. In the present case, since the advance ruling is sought by the Applicant Company for the question covered by Section 97 and Section 98 of the CGST Act and MGST Act and also the said question is not pending or deiced elsewhere in the case of Applicant Company, it is submitted that the Applicant Company is eligible to file advance ruling and the instant application is admissible.
Transaction carried out by the Applicant Company in relation to renting of workwear amounts to “transfer of right to use” of goods
3. The expression “transfer of right to use” has been employed in Article 366(29A) of the Constitution of India and also under the erstwhile Value Added Tax legislations and under the provisions of the Finance Act, 1994 (in so far as they are relevant for 'Service Tax' pu

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of the agreement.
7. Based on above legal provisions, the Applicant Company respectful submits that the services of renting of workwear provided by it amounts to 'transfer of right to use of the workwear to respective customers, which activity / transaction is covered under entry 5 (f) of the schedule II of the CGST Act. This submission of the Applicant Company is based inter alia on following factual aspects:
(a) Ownership of the workwear remains with the Applicant Company throughout the contract but effective control and possession is transferred to respective customers,
(b) The Applicant Company has exclusive right to wash and maintain the workwear and maintaining inventory of workwear because the subject workwear are industrial products prepared based on specifications prescribed by each customer and needs to be washed and serviced industrially,
(c) Each workwear is designed and prepared specifically for a customer based on the desired specifications and size and in case of

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t
1.
Goods should be available for delivery
Yes. The workwear is available for delivery to customers
2.
There must be consensus ad idem as to the identity of the goods
Yes. The customer and the Applicant Company are aware of goods (being workwear), which are separately identifiable
3.
The transferee should have a legal right to use goods
Yes. The customers have sole legal right to use the goods
4.
For the period for which the transferee has legal right, it has the to be the exclusion of transferor
Yes. During the period such work wear are supplied by Applicant Company to the customers, such work wear can be exclusively used by the customers and the Applicant Company has no legal right over the workwear.
5.
Owner cannot again transfer the same right to others
Yes. During the term of the agreement the workwear cannot be transferred by Applicant Company to any other person as such workwear are stitched as per fitting of respective employees and therefore cannot be transferr

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own the activities to be treated as supply of goods or supply of services. Entry 1 (b) and Entry 5 (f) of Schedule II of CGST Act deals with transfer of right in goods without transfer of title and transfer of right to use of goods for any purpose for a consideration respectively. In both cases, the transaction shall qualify as supply of services. Relevant portion has been reproduced below:
“Schedule II- Activities to be treated as supply of goods or supply of service
1. Transfer
(b) any transfer of right in goods or of undivided share in goods without the transfer of title thereof, is a supply of service
5. Supply of services
(f) transfer of the right to use any goods for any purpose (whether or not for a specified period) for cash, deferred payment or other valuable consideration.”
12. Without prejudice to the aforesaid submissions, it is submitted that even if it is assumed for the sake of argument that the transaction undertaken by the Applicant Company falls short of a

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y identifiable.
15. Therefore, conferment by Applicant Company of rights to the customers to possess, control, use and in other identified ways enjoy workwear will qualify as 'transfer of right to use' of goods under Entry 5 (f) of Schedule II of CGST Act. Thus, in terms of Entry 5 (f), this transaction will also be considered as supply of service under GST laws. Even if the transaction do not qualify as 'transfer of right to use' of goods it is shall qualify as transfer of right in goods without transfer of title, which is also treated as supply of service under GST laws.
“Composite supply” V. “Mixed Supply” under GST laws
16. The taxable event under GST law is the supply of goods and services. Classification of a supply is essential to charge the applicable rate of GST on a particular supply. On a few occasions, certain transactions require supply of a combination of services or combination of goods or combination of both goods and services that maybe taxed at different GST rates

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ne or more supplies would render the entire supply ineffective. The discussion on service which gives the bundle its essential character and whether services cannot be separated follows.
21. The concept of composite supply as envisaged under GST laws is identical to the concept of bundled services existing under the erstwhile service tax regime. The term naturally bundled stems from the erstwhile service tax regime. As per service tax laws, a bundled service means a bundle of provision of various services wherein an element of provision of one service is combined with an element or elements of provision of any other service or services. In order to understand the concept and the principles to determine bundled services, reliance has been placed on Taxation of Services, an Education Guide 2012, dated 20 June 2012 issued by the Central Board of Excise & Customs ('Education Guide'). As per the Education guide, an illustrative list of indicators, not determinative but indicative of bundli

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Company workwear are mainly used from industrial purpose and customer (s) expect that ancillary services provided by the Applicant Company are expected to be provided as a package since such workwear are industrial products and are required to be industrially washed, maintained etc. Lindstrom India is having the required machinery and techniques to carry out such industrial washing etc.
b. Majority of service providers in a particular area of business provide similar bundle of services. For example, bundle of catering on board and transport by air is a bundle offered by a majority of airlines. Lindstrom India is the market leader in providing such services and these services are provided by Lindstrom as a package to its customers therefore this condition will automatically get fulfilled,
C. The nature of the various services in a bundle of services will also help in determining whether the services are bundled in the ordinary course of business. If the nature of services is such th

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of the lawmakers.
Further, in addition to above various judgments under European Union VAT laws have also clarified that a transaction compromising two supplies should be considered as supply of two or more distinct and independent supply or a single supply of service. In the case of Card Protection Plan Ltd. (“CCP”) v/s Commissioner of Customs and Excise Dated 25 February 1999 [case C-349/96] CCP along with services related to its credit card operations was providing services of insurance coverage of damage resulting from loss of credit card. In the above case European court of justice ('IECJ”) held that in order to determine whether the taxable person is supplying the customer with several distinct principle services or with a single service the essential features of the transaction must to ascertain. According to ECJ a supply would be considered as single supply of service where one of the element of the supply is considered as principle service and one or more element is regarded

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ideration for the same. Thus, in case of services provided by the Applicant Company to customers, it appears that the core service is renting of workwear gives the bundle its essential character. Intent of the arrangement between Lindstrom India and customers is renting of workwear for industrial purpose. Supplying the various heads of services that are ancillary to the renting of workwear by Lindstrom India is with the fundamental purpose of supplying the core service of providing workwear to its customers and maintain the same as per terms of the agreement.
f. The main/core services provided by Lindstrom India to customers appears to be of renting and maintaining of industrial workwear to customers. In other words, the aim of customers is to receive agreed number of workwear from Lindstrom India stitched and maintained as per agreed terms to be used by workers of the customers. Therefore, the renting of workwear provided by Lindstrom India appears to be bundle of services, where ot

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itional services i.e.. Weekly cleaning, sale of logo/badges, transportation, locker facility, maintenance and repair etc. are services naturally bundled with the principle supply of renting of workwear. The said services can be construed as ancillary services provided in conjunction with the principle service to render the main/ core service. However, the ancillary services are integral to one overall supply i.e. renting of workwear and cannot be separated from the main service. Therefore, the services qualify to be naturally bundled services provided in conjunction of each Other they will be covered under as composite supply under Section 2 (30) of the CGST Act.
Mixed Supply
23. As per section 2(74) Of the CGST “Mixed supply” has been defined as follows:
“Mixed Supply means two or more individual supplies of goods or services, or any combination thereof, made in conjunction with each other by a taxable person for a single price where such supply does not constitute a composite su

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pany
25. The concept of taxability of bundled service were also covered in erstwhile regime under Section 66F (3) of the Finance Act 1994 (Service Tax Act). Relevant portion is reproduced below:
The taxability of a bundled service shall be determined in the following manner:
1. if various elements of such service are naturally bundled in the ordinary course of business, it shall be treated as provision of the single service which gives such bundle its essential character;
2. if various elements of such service are not naturally bundled in the ordinary course of business, it shall be treated as provision of the single service which results in highest liability of service tax
26. Furthermore, taxability of composite supply is covered under section 8 of CGST Act. Relevant provision is reproduced below:
“Section 8 of CGST: – composite supply comprising two or more supplies, one of which is a principal supply, shall be treated as a supply of such principal supply and the whole cons

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ax applicable on the above services provided by Applicant Company would be that of goods involved in such services and in the case of the Applicant Company goods involved are clothes or apparel.
28. Further, it must be noted that rate of tax applicable on apparel/clothes is also dependent on the sales value or sales price of the goods in question which is elaborated as follows:
Goods
GST Rate
Articles of apparel and Clothing accessories, knitted or crocheted, of sale value not exceeding INR 1000 per piece  
5%
If exceeding INR 1000 per piece
12%
Articles of apparel and clothing accessories, not knitted or crocheted, of sale value not exceeding INR 1000 per piece
5%
If exceeding INR 1000 per piece
12%
29. Keeping in mind the above section in the present case, since the primary activity of the Lindstrom India is renting of workwear which is predominant element of the services provided by Lindstrom India to its customers and other services provided along with renting of

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s follows:
“(b) a mixed supply comprising two or more supplies shall be treated as a supply of that particular supply which attracts the highest rate of tax”
31. Therefore, in case the transaction of (a). Renting of workwear along with other ancillary services mentioned in Para B.1 or (b) Renting of workwear along with ancillary services and locker facility to its customer by the Applicant company for a single consideration is considered as mixed supply of services under GST, entire bundle of services shall be deemed to be against supply of service which attracts the highest rate of tax and accordingly the whole consideration shall become chargeable to GST at such highest rate.
PRAYER
In view of the foregoing, it is prayed that this Hon'ble Authority be pleased to hold, adjudge and declare its ruling on the matters covered as follows:
1. That the transfer of the workwear to its customer by the Applicant Company amounts to transfer of right to use goods;
2. That the services pro

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e has perused the documents provided by M/s. Lindstorm Services India Pvt Ltd as well as the previous records available on this issue. The reply to the questions raised by M/s. Lindstorm Services India Pvt Ltd is as follows:
Question 1 :
1. What is the classification of the activities/transactions carried out by the applicant company as mentioned in the statement of facts (Annexure-I). In particular,
i) DO these activities/ transactions of renting of work wear qualify as “transfer of right to use” of goods by applicant company to its customers in terms of entry 5(f) of Schedule II of CGST Act,
ii) Alternatively do these activities/ transactions qualify as “transfer of right in goods” in terms of Entry 1 (b) of Schedule II of CGST, Act?
Entry 1 (b) of Schedule II of CGST Act, 2017 states that:
Transfer
(b) an transfer of right in goods or of undivided share in goods without the transfer of title thereof, is a supply of service.
Entry 5(f) of Schedule II of CGST Act,

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ract, the ownership of the workwear rests with M/s. Lind storm Services India Pvt Ltd. Only the right to use the workwear is passed on their customers with a condition that the workwear should only be used for the purpose for which they were designed in the first place. The customers cannot sublet the workwear or use it for any other needs. Thus, this is not an absolute or un-conditional transfer of rights. Hence, this activity is more aptly categorized under Entry 5(f) of Schedule II of CGST Act, 2017 as this is transfer of the right to use the goods(workwear) for the said purpose (in this case) for a specified period (12 months or perpetuity) for a pre-determined consideration (weekly rent).
Question 2:
ii) What is the nature of the supply based on the facts and circumstances as mentioned in the statement of facts i.e. renting of work wear along with other services such as transportation, weekly washing etc. for a single consideration?
* Does this supply qualify as “composite su

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oes not constitute a composite supply.”
Illustration. – A supply of a package consisting of canned foods, sweets, chocolates, cakes, dry fruits, aerated drinks and fruit juices when supplied for a single price is a mixed supply. Each of these items can be supplied separately and is not dependent on any other. It shall not be a mixed supply if these items are supplied separately;
The services provided by M/s. Lindstorm Services India Pvt Ltd. are as listed below:
i. Renting of workwear
ii. Wash, maintenance & repair
iii. Transport of workwear including trolleys and transport of bags
iv. Lockers for storage of workwear
v. Modification of workwear as per specifications
vi. Sale of logo/ badges/ nametags Replacement or reimbursement of old workwear against a redemption charge.
From our records, it has also been observed that M/s. Lindstorm Services India Pvt Ltd provide services of Supply of Manpower (if need be) for the Management of lockers & workwear at the customer's p

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ing on board can be availed only if the air transport is availed. Without the latter, the former ceases to exist. Besides, due to lack of other options on board, the two services are naturally bundled.
(ii) Stay in a hotel combined with a service of laundering: Without the former the latter ceases to exist. The latter is not a standalone service and adds to enhance the quality of the former. Hence, the two services are naturally bundled.
Applying the same ratio decided to the case of M/s. Lindstorm Services India Pvt Ltd, it is evident that Washing, Maintenance and Repair of workwear is a standalone service and it is independent of the service of renting of workwear. There are many industries which offer only the services of Washing, Maintenance and Repair of clothes. As perused from our records, M/s Lindstorm Services India Pvt Ltd has also provided only “Washing Services in the past to one of their customers (namely Glaxo Smith Kline). Hence, it is evident that this bundling of s

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4. HEARING
The case was taken up for Preliminary hearing on DT. 18.07.2018 when Sh. Ankit Shah, applicant along with Ms. Mausumi Sarkia and Ms. Anjana Varma appeared and requested for admission of application as per contentions in their ARA. Jurisdictional Officer, Ms. Arpita, Asstt. Commissioner of CGST & CE, Belapur- IV, Division appeared and stated that she does not have any objection with respect to admission and made written submissions.
The application was admitted and called for final hearing on 23.08.2018, Sh. Tarun Jain, Advocate along with Sh. Ankit Shah, applicant Ms. Anjana Varma and Sh. Saurabh Chhadwa appeared and made oral and written submissions. Jurisdictional Officer, Sh. Sadanand Patnaik Asst. Commissioner, Belapur-IV, Division appeared and stated that they have already made written submissions.
05. OBSERVATIONS
We find that the applicant has raised questions as mentioned above on which advance ruling is sought. We now deal with the questions raised, as under:-

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urther states that applicant owns the rented products and shall have the exclusive right to wash and service them. We also find from the terms of the agreement that workwear is designed as per the fittings of every individual and further at the request of customer applicant fixes on the workwear with logos/ badges making the goods identifiable. The agreement also mentions that in the event either applicant or the customer withdraw from the agreement, the workwear remains the Applicant's property. The facts of the present case are similar to the facts in the judgment of Hon. High Court of AP in case of M/s. G.S. Lamba & Sons Vs. State of Andhra Pradesh reported as 43 VST 323 (AP) = 2011 (1) TMI 1196 – ANDHRA PRADESH HIGH COURT wherein petitioners agreed to provide five dedicated fleet of transit mixers and these dedicated vehicles were to be painted in a particular style and colour. The court held that during the period of contract for any third party, the goods as visible in use would

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s such as transportation, weekly washing etc. for a single consideration?
* Does this supply qualify as “composite supply” as per Section 2(30) of CGST Act?
* Alternatively does this supply constitute a “mixed supply” under Section 2(74) of CGST Act?
This question is about the nature of supply. From the terms of the contract as mentioned in earlier part, we find that the activities carried out by the applicant is renting of workwear, which we have declared as supply of services. Besides renting of workwear and as per the terms of the contract, ancillary activities such as transport of workwear, weekly cleaning, maintenance, repairs and finishing of workwear is carried out by the applicant. It is thus obvious that impugned transaction as envisaged by the contract consists of more than two taxable supplies of services. In view of this the applicant concludes that services provided by them such as renting of workwear and other ancillary services constitute composite supply as defi

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to justify their case, the applicant has strongly relied upon the 'Education Guide' issued by CBEC in the year 2012, wherein the concept of 'composite supply' has been explained.
We have already reproduced the same in the para 'Applicant's interpretation of law'. From the perusal of entire transaction as evidenced by the contract we find that the provision of renting of workwear is combined with provision of ancillary services such as transportation, weekly clearing, maintenance, repairs and finishing of the said workwear. Thus applicant satisfies one of the conditions that is essential character of 'Bundled Service' of the composite supply.
Applicant having satisfied one of the essential character of composite supply as mentioned above now examine whether these services are bundled in the ordinary course of business which is one of the essential character of supply. To answer this Question we have to refer to Object of the Agreement' at para 2 of the agreement made between M/s. Nutr

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le separately
* The different elements are integral to one overall supply – if one or more is removed, the nature of supply would be affected.
The above principle can be adopted to the facts of the present case to determine whether impugned supply is a bundled services in the ordinary course of business.
From the perusal of object of agreement we find that services other than renting of workwear are being supplied not in the ordinary course of business but under the compulsion imposed by the applicant on the customer. Further we find that services such as washing, maintenance and transportation etc. are standalone services and are normally available separately. We agree with the jurisdictional officer that all so called ancillary services are independent of the service of renting of workwear and that there are many service providers who offer specific service such as washing, maintenance and repair of cloths. Applicant has also provided 'Washing Services' in the past to one of th

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ed supply if these items are supplied separately;
Thus, in order to identify, if the particular supply is a mixed supply, the first requisite is to rule out that the supply is a composite supply. A supply can be a mixed supply only if it is not a composite supply. As a corollary it can be said that if the transaction consists of supplies not naturally bundled in the ordinary course of business then it would be mixed supply. Further we find that customer pays single price under single invoice for the package of services. We have already ruled out the possibility of the present transaction being a composite supply, and the fall out is that the transaction qualifies as a mixed supply as defined in section 2(74) of the GST Act.
06. In view of the deliberations as held hereinabove, we pass an order as under:
ORDER
(Under section 98 of the Central Goods and Services Tax Act, 2017 and the Maharashtra Goods and Services Tax Act, 2017)
NO.GST-ARA-43/2018-19/B-115
Mumbai, dt. 15.09.2018

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tement of facts (Annexure-I) i.e., renting of workwear along with other services such as transportation, weekly washing etc. for a single consideration? In particular,
* Does this supply qualify as “composite supply” as per section 2 (30) of CGST Act?
* Alternatively, does this supply constitute a “mixed supply” under section 2 (74) of CGST Act?
Answer: – The supply of renting of workwear along with other services such as transportation, weekly washing etc. for a single consideration is a mixed supply under section 2 (74) of CGST Act.
Question 3. In the event the answer to question (2) above is that the transaction undertaken by the Applicant Company qualifies as 'composite supply',
(i) What will be the “principle supply” for the purpose of section 2 (90) of CGST Act?
(ii) What will the applicable rate of GST?
(iii) Whether the conclusion (i.e. the transaction is a 'composite supply) will remain the same if in addition to the services covered in question no. 2 above Applican

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In Re: Behr-Hella Thermocontrol India Pvt. Ltd.,
GST
2018 (11) TMI 887 – AUTHORITY FOR ADVANCE RULING, MAHARASHTRA – 2019 (20) G. S. T. L. 124 (A. A. R. – GST)
AUTHORITY FOR ADVANCE RULING, MAHARASHTRA – AAR
Dated:- 15-9-2018
GST-ARA-172018-19/B-116
GST
SHRI B.V. BORHADE, AND SHRI PANKAJ KUMAR, MEMBER
PROCEEDINGS
(under section 98 of the Central Goods and Services Tax Act, 2017 and the Maharashtra Goods and Services Tax Act, 2017)
The present application has been filed under section 97 of the Central Goods and Services Tax Act, 2017 and the Maharashtra Goods and Services Tax Act, 2017 [hereinafter referred to as “the CGST Act and MGST”] by Behr-Hella Thermocontrol India Pvt. Ltd., the applicant, seeking an advance ruling in respect of the following question.
Whether in the facts and circumstances of the case, the Applicant is liable to pay Integrated Goods and Services Tax on the testing services provided to its overseas group entities, being a zero-rated sup

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adgaon, Pune – 411 033. The Applicant is a 100% subsidiary of Behr-Hella Thermocontrol GmBH, Lippstadt, Germany (hereinafter referred to as “BHTC Germany”). The Applicant is registered under GSTIN No. 271800000581ARQ.
2. In the normal course of business, the Applicant has entered into service agreements with BHTC Germany and its other overseas group entities such as Behr-Hella Thermocontrol, Inc. (hereinafter referred to as “BHTC USA”) and Behr-Hella Thermocontrol (Shanghai) Co. Ltd. (hereinafter referred to as “BHTC Shanghai”), inter alia, for providing testing services. Hereto annexed and marked as Exhibit “A” is the copy of the Service Agreement entered into by the Applicant with BHTC Germany.
3. The testing services provided by the Applicant are in relation to the prototype goods supplied by the overseas group entities to determine whether the products so tested function in accordance with the requisite standards based on certain identified parameters such as temperature, environ

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cation to the Hon'ble Authority for Advance Ruling.
The Applicant craves leave to submit such further facts as may be relevant after admission of the application or at the time of hearing.
Statement containing the applicant's interpretation of law and/or facts. as the case may be. in respect of the questions(s) on which advance ruling is required
In light of the facts of the case (as explained in Annexure I) and the question in respect of which the Applicant seeks an Advance Ruling, the Applicant's interpretation of facts and law in respect of the aforesaid questions is as follows:
Question: Whether in the facts and circumstances of the case, the Applicant is liable to pay Integrated Goods and Services Tax on the testing services provided to its overseas group entities, being a zero-rated supply?
Applicant's submissions
1.1 With effect from 01 July 2017, indirect tax regime in India has shifted from multiple taxes by multiple authorities at multiple times to a consolidated Go

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ld accrue to the taxing authority which has jurisdiction over the place of consumption which is also termed as place of supply.
1.3 Section 7(5) of the Integrated Goods and Service Tax Act, 2017 (hereinafter referred to as the “IGST Act”) provide that supply of service shall be treated as a supply of service in the course of inter-State trade or commerce when the supplier is located in India and the place of supply is outside India,
1.4. As per Section 16 of the IGST Act, “export of service” shall qualify as “Zero rated supply” and can be supplied without payment of IGST.
1.5 Thus, even if a supply is in the course of inter-State trade or commerce, the same can be supplied without payment of IGST if it qualifies as an export of service.
1.6 In terms of Section 2(6) of the IGST Act, a supply of service shall qualify as export of service when:
(a) the supplier of service is located in India;
(b) the recipient of service is located outside India;
(c) the place of supply of service

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e for the supply of a service, the person to whom the service is rendered,
and any reference to a person to whom a supply is made shall be construed as a reference to the recipient of the supply and shall include an agent acting as such on behalf of the recipient in relation to the goods or services or both.
*********
(105) “supplier” in relation to any goods or services or both, shall mean the person supplying the said goods or services or both and shall include an agent acting as such on behalf of such supplier in relation to the goods or services or both supplied.
*********
1.8 In the facts and circumstances of the present case, it is not in dispute that the Applicant is the “supplier of services” in terms of Section 2(105) of the CGST Act, and the overseas group entities, being liable to pay the consideration for the services supplied by the Applicant, are the “recipient of services” in terms of section 2(93) of the CGST Act.
1.9 Thus, condition provided under clause (a) and

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t is also satisfied.
1.15 Now the only condition that needs to be satisfied for the testing service provided by the Applicant to its overseas group entities to qualify as export and therefore a “zero rated supply” which can be supplied without payment of IGST is whether the “place of supply” is outside India.
1.16 Hence, the “place of supply” is relevant to decide the taxability and the status of taxability of the testing services provided by the Applicant to its overseas group entities.
1.17 The provisions for determining the place of supply of services are contained under Section 13 of the Integrated Goods and Service Tax Act, 2017 (hereinafter referred to as the “IGST Act”). The relevant extracts of Section 13 of the IGST Act are reproduced below for ready reference:
Place of supply of services where location of supplier or location of recipient is outside India.
13. (1) The provisions of this section shall apply to determine the place of supply of services where the location

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Provided further that nothing contained in this clause shall apply in the case of services supplied in respect of goods which are temporarily imported into India for repairs and are exported after repairs without being put to any other use in India, than that which is required for such repairs;
***********
1.18 The terms “location of the recipient of services” and “location of the supplier of services” have been defined under Section 2(14) and Section 2(15) of the IGST Act as under:
 
Definitions
2. In this Act, unless the context otherwise requires, –
********
(14) “location of the recipient of services” means,
(a) where a supply is received at a place of business for which the registration has been obtained, the location of such place of business;
(b) where a supply is received at a place other than the place of business for which registration has been obtained (a fixed establishment elsewhere), the location of such fixed establishment;
(c) where a supply is received

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ence” has been defined under Section 2(113) of the CGST Act as under:
Definitions
2. In this Act, unless the context otherwise requires, –
********
(113) “usual place of residence” means
(a) in case of an individual, the place where he ordinarily resides;
(b) in other cases, the place where the person is incorporated or otherwise legally constituted;
1.20 In view of the above, while the location of the Applicant is in India in terms of Section 2(15)(a) of the IGST Act, the recipient of services (i.e., the overseas group entities) are located outside India in terms of Section of the IGST Act.
1.21 Further, a bare perusal of Section 13 of the IGST Act would reveal that generally, the place of supply of services shall be the location of the recipient of services in terms of Section 13(2) of the IGST Act, except in case of the services specified in sub-sections (3) to (13) of Section 13 of the IGST Act.
1.22 The Applicant understands that sub-sections (4) to (13) of Section 13 of

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t the testing services.
1.26 The Applicant is required to submit a test report and the contractual obligation of the Applicant towards overseas group entities in terms of the provision of testing services is complete only when the test reports are delivered to them. In other words, the provision of service is complete only when the test report is delivered to the overseas group entities.
1.27 It is submitted that the delivery of the test report by the Applicant to its overseas group entities is the most Important part of the services rendered by the Applicant. In fact, the overseas group entities, as recipient of Services, are expecting the test report and nothing apart from that.
1.28 As stated above, GST is a destination based tax on consumption of goods and services. Further, “Services” are something intangible in nature. Thus, service is something which is not visible but the person receiving the same is deriving some benefit from its performance. Thus, GST is levied where the s

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In other words, the ultimate deliverable or the actual provision of service is the provision of the test report.
1.31 Further, there is no compulsion on the Applicant to return the prototype goods to the overseas group entities which further confirms that the overseas group entities are not concerned with the goods. Therefore, the actual consumption of the testing services performed by the Applicant is happening outside India in the form of the test reports.
1.32 The aforesaid position is further substantiated by the second proviso to Section 13(3)(a) of the IGST Act which provides that even though the repairing of goods is done in India, the place of supply shall be outside India if the goods after repairs are exported out of India. The rationale behind such exclusion appears to be that no GST should be levied as the goods will be ultimately used or consumed outside India.
1.33 The above contention is also supported by the judgment of the Hon'ble Bombay High Court in the case of C

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dent in inspection/test analysis of the goods which the clients located abroad intended to import from India. In other words, the clients abroad were desirous of confirming the fact as to whether the goods imported complied with requisite specifications and standards. Thus, client of the respondent located abroad engaged the services of the respondent for inspection and testing the goods. The goods were tested by the respondents in India. The goods were available or their samples were drawn for such testing and analysis in India. However, the report of such tests and analysis was sent abroad. The clients of the respondent were foreign clients, paid the respondent for such services rendered, in foreign convertible currency. It is in that sense that the Tribunal holds that the benefit of the services accrued to the foreign clients outside India. This is termed as 'export of service'. In these circumstances, the Tribunal takes a view that if services were rendered to such foreign clients

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be said to be perverse or vitiated by an error of law apparent on the face of the record. If the emphasis is on consumption of service then, the order passed by the Tribunal does not raise any substantial question of law.
 1.34 The aforesaid judgment of the Hon'ble Bombay High Court has been followed by it in the case of The Pr. Commissioner of Mumbai Commissionerate v. QIndia Investment Advisory Pvt. Ltd. reported in 2017-TIOL-2171-HC-MUM-ST = 2017 (10) TMI 754 – BOMBAY HIGH COURT.
1.35 Since GST is also a “destination based consumption tax” on goods and services, relying upon the judgment of the Hon'ble Bombay High Court in SGS India Ltd, (supra) and Qlndia Investment Advisory Pvt. Ltd. (supra), it is submitted that the place of supply in case of the testing Service provided by the Applicant to its overseas group companies is also outside India.
1.36 In this regard, it is further submitted that even if the services are provided from India, since the actual consumption of th

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incorporated under the laws of the Federal Republic of Germany, having its registered office at Stuttgart, register court HRB 20260, and its principal place of business at Hansastraße 40, 59557 Lippstadt, Federal Republic of Germany, represented by its Managing Directors Mr. Thomas Schulte and Dr. Andreas Teuner (hereinafter called “BHTC”) of ONE PART
AND
Bebr-Hella Thermocontrol India Private Limited, a Company incorporated in India and having its Registered Office at Elpro Compound, City Survey No. 4270, Chinchwadgaon, Pune – 411033, India,, represented by its Director and CEO Mr. Shrivardhan Gadgil (hereinafter called “BHTCIN”) of OTHER PART. Whereas –
a) BHTC, IN was incorporated on February 10, 2006. BHTCIN is in the process of undertaking activities as developer, manufacturer, producer, purchaser, seller, importer, exporter, distributor, dealer, commission agent and market representatives of all kinds of Control Equipment and Units for Air conditioning and Climate Contr

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ting is carried in manual mode and also in automated mode
c) BHTCIN is interested in accepting such engagements from BHTC and willing to provide services related to man and machine resources as per requirement of BHTC (hereinafter referred to as “Services”); and
d) BHTC and BHTCIN mutually desire to set forth in this Agreement certain terms and conditions                 applicable to all such engagements;
Now it is hereby agreed as follows:
1. Scope, Duties and Responsibilities of BHTCIN
a. BHTCIN shall recruit and maintain duly qualified, skilled and experienced resources to provide services to BHTC and its group companies as agreed in the beginning of each calendar year with BHTC. These services will be provided from BHTCIN facility or on-site as per requirement of BHTC or its affiliates.
b. BHTCIN will track its resources in the manner agreed with BHTC and will ensure that the time booking is done

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for resources planned and available at BHTCIN with all information and details about the projects. All resources identified and agreed in the business plan will have to be used by BHTC and will be invoiced by BHTCIN.
b. BHTC will provide. 4.rolling plan on services required from BHTCIN in the beginning of each calendar month covering next three months outlook of the project jobs which could be assigned to resources at BHT CIN
c. The technical coordinators at BHTC shall work closely with Dianagers/ supervisors at BHTCIN and will be responsible for the quality of deliverables and the project timelines.
d. BHTC will support BHTCIN for building competencies and enhance efficiency and productivity through sufficient workloads, exposure to now projects/ technologies, training and mentoring. BHTC will plan and send its experts to visit BHTCIN for technical training of resources at its own costs and the same will be invoiced separately from: BHTC to BHTCIN.
e. BHTC will help BHTCIN

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h calendar year commencing from January 2014 and shall be notified separately.
BHTC will pay the hourly' rate plus travel expenses (Air ticket, Transportation, Lodging, Meals or allowance), which will be approved in advance by BHTC for each Professional on project assignment on site at BHTC Lippstadt or at any other location. (BHTC will receive corresponding documentation)
Except as expressly agreed with BHTC, BHTCIN shall bear all of its own expenses arising from its performance of its obligations under this Agreement, including (without limitation) expenses for facilities, work spaces, training, utilities and the like.
4. Ownership and Rights
In relation to jobs received by BHTCIN from BHTC, all original and intermediate written material, including programs, documentation, CDs, diskettes, listings and any other material generated by BHTCIN personnel for BHTC shall belong exclusively to BHTC.
5. Confidentiality
a. Except as provided by clause 5(b) herein below, BHTC and

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enalties and obligations arising directly or indirectly from a breach of this provision.
7. Assignment
BHTCIN is not allowed to assign this Agreement or any part of this Agreement to a third Party without prior written consent of BHTC.
8. Change Of ownership
BHTCIN must inform BHTC of any pending change in ownership of the BHTCIN as soon as the change is more likely than not. Upon notice of a pending change in ownership BHTC reserves the right to change the terms and conditions of this agreement without any concurrence of BHTCIN.
9. Term and Termination:
a. This Agreement supersedes the Service Agreement between BHTC and BHTCIN dated January 1, 2012 and amendments thereof and shall come into force on the date of its execution and shall lasts until 315 December 2015 and will be automatically renewed if none of the parties terminates within ninety (90) days in advance.
b. If BHTCIN Commits any act of insolvency or any provision for winding up is admitted against BHTCIN,

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11. Severability Clause
If a provision of this agreement is or becomes illegal, invalid or unenforceable in any jurisdiction, the contract shall be construed as if the same had not been inserted. The Parties hereby agree to make an amendment to the contract containing a legal, valid or enforceable provision.
12. Amendments and Modifications
All amendments or modifications to this Agreement must be in writing, identified as an amendment to this Agreement and signed by an authorized representative of each Party
13. Governing LAW
This Agreement Shall be subject to the laws of the Federal Republic of Germany. For all claims arising out of or in connection with this Agreement as far as statutorily allowed -, the courts competent for Behr-Hella Thermocontrol GmbH domicile shall have jurisdiction.
Additional submissions 06.09.2018
WRITTEN SUBMISSIONS
1. At the outset, the Applicant expresses their gratitude to this Hon'ble Authority for Advance Ruling for granting a patient

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ds are not usually sent back. The copy of the test report us attached as page 27 of the application.
4. On the basis of the said test reports, the overseas group companies then make the suggested alterations to the product design and manufacture products based thereon.
SUBMISSIONS:
A. We refer to and reiterate the Submissions made in para 1.1 to 1.38 of the application. The Said submissions are summarized as follows:
(i) The services of testing of the prototypes provided by the Applicant to its group companies are appropriately classified under Section 13(2) of the Integrated Goods and Services Tax Act, 2017 (“IGST Act”);
(ii) The services of testing of prototype and providing the report based on which mass production is undertaken is more in the nature of advisory/ consultancy service, rather than the services prescribed under Section 13(3) of the IGST Act which, inter alia, entail provision of service on the goods made available physically by the recipient of service and which

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n'ble High Court and Hon'ble Appellate Tribunal.
C. It is submitted that the Hon'ble High Court and the Hon'ble Appellate Tribunal have taken a consistent view that service tax being a destination based consumption tax, the place of supply/ place of provision of the said services are outside India and the said services qualify as export of services.
D. Under the service tax regime, as applicable prior to 2012, i.e., prior to the negative list based approach of taxation of services, the conditions prescribed for qualifying as export of services were laid down in the Export of Services Rules, 2005, The relevant extracts Of the Export of Services Rules, 2005 are reproduced below:
“3. Export of taxable service. –
The export of taxable service shall mean, –
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(2) in relation to taxable services specified in sub-clauses (a), (), (h), (i), (i), (1), (m), (n), (o), (s), (t), (u), (w), (x), (y), (2), (zb), (zc), (zi), (zj), (zn), (zo), (zq), (zr), (zt), (zu), (zu), (zw), (zza), (zz

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ndia. It is submitted that the said provisions are substantially similar to the provisions of the Place of Supply Rules as provided under Section 13 of the IGST Act.
F. Further, w.e.f. 01 April 2011, Rule 3(2) of the Export of Services Rules, 2005 was amended and condition for the Technical Testing and Analysis Services for qualifying as export of services was changed from the place of performance of service to the location of the recipient of service.
G. The aforesaid amendment indicates that the intention of the legislature at all times was to treat the said testing and analysis services, the report for which was issued to the overseas service recipient as export of service, based on the location of the recipient of service. The key factor being that service tax was a destination based consumption tax and the services with regard to the said testing were being consumed outside India, The Frequently Asked Questions (FAQs) to the Central Goods and Services Tax Act, 2017 published by

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of the Place of Provision of Services Rules, 2012 have been reproduced below:
RULE 4. Place of provision of performance based services. –
The place of provision of following services shall be the location where the services are actually performed, namely:-
(a)  services provided in respect of goods that are required to be made physically available by the recipient of service to the provider of service, or to a person acting on behalf of the provider of service, in order to provide the service:
Provided that when such services are provided from a remote location by way of electronic means the place of provision shall be the location where goods are situated at the time of provision of service:
Provided further that this clause shall not apply in the case of a service provided in respect of goods that are temporarily imported into India for repairs and are exported after the repairs without being put to any use in the taxable territory, other than that which is required for su

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dgment on the prevalent issue wherein, the Hon'ble Bombay High Court while interpreting the Export of Services Rules, 2005 has held as follows:
24. In the present case, the Tribunal has found that the assessee like the respondent rendered services, but they were consumed abroad. The clients of the respondents used the services of the respondent in inspection/test analysis of the goods which the clients located abroad intended to import from India. In other words, the clients abroad were desirous of confirming the fact as to whether the goods imported complied with requisite specifications and standards. Thus, client of the respondent located abroad engaged the services of the respondent for inspection and testing the goods. The goods were tested by the respondents in India. The goods were available or their samples were drawn for such testing and analysis in India. However, the report of such tests and analysis was sent abroad. The clients of the respondent were foreign clients, paid

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activities and is not a charge on the business, but on the consumer, then, it is leviable only on services provided within the country. It is this finding and conclusion of the Hon'ble Supreme Court which has been applied by the Tribunal in the facts and circumstances of the present case.
The copy of the said judgment in the case of SGS India Pvt. Ltd. has been attached at page 25 of the first compilation of documents.
K. It is submitted that said judgment in the case of SGS India Pvt. Ltd. (supra) has been followed by the Hon'ble Bombay High Court in the case Of QIndia Investment Advisory Pvt. Ltd. reported in 2017-TIOL-2171-HC-MUM-ST = 2017 (10) TMI 754 – BOMBAY HIGH COURT. The copy of the said judgment has been attached at page 31 of the first compilation of documents.
L. The aforesaid two judgments are issued under the Export of Services Rules, 2005. The Hon'ble Tribunal, in Commissioner of Central Excise, Pune-l v/ s. Sai Life Sciences Ltd. reported in 2016 (42) STR 882 (Tri.-

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e Hon'ble Bombay High Court in the case of SGS (supra), the ratio of the said judgment cannot be said to be in jeopardy, as no Stay has been granted against the same. In this regard, reliance is placed on the following judgments:
(i) Union of India v/s. Kamlakshi Finance Corporation Ltd. reported in 1991 (55) ELT 433 (SC) = 1991 (9) TMI 72 – SUPREME COURT OF INDIA;
(ii) Mycon Construction Ltd. v/s. Union of India reported in 2017 (350) ELT 514 (Bom.) = 2017 (3) TMI 347 – BOMBAY HIGH COURT;
(Ill) Shree Sai Vamika Industries v/ s. Union of India reported in 2017 (347) ELT 93 (Gau.) = 2015 (12) TMI 1778 – GAUHATI HIGH COURT
The copies of the said judgments are attached at pages 31 to 36 of the second compilation of documents.
In view of the aforesaid, it is submitted that the place of supply of the testing services provided by the Applicant is outside India and the testing services qualify as export of service in terms of Section 2(6) of the IGST Act.
03. CONTENTION – AS PER THE

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ion of the recipient of services:
Provided that where the location of the recipient of services is not available in the ordinary course of business, the place of supply shall be the location of the supplier of services.
(3) The place of supply of the following services shall be the location where the services are actually performed, namely:
(a) services supplied in respect of goods which are required to be made physically available by the recipient of services to the supplier of services, or to a person acting on behalf of the supplier of services in order to provide the services:
Provided that when such services are provided from a remote location by way of electronic means, the place of supply shall be the location where goods are situated at the time of supply of services:
Provided further that nothing contained in this clause shall apply in the case of services supplied in respect of goods which are temporarily imported into India for repairs and are exported after repair

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“export of services” means the supply of any service when,
(i) the supplier of service is located in India;
(ii) the recipient of service is located outside India;
(iii) the place of supply of service is outside India;
(iv) the payment for such service has been received by the supplier of service in convertible foreign exchange; and
(v) the supplier of service and the recipient of service are not merely establishments of a distinct person in accordance with Explanation 1 in section 8;
The applicant satisfies the clauses of sec(2)(6) and as the place of supply of service is outside India, this office is of the view that the applicant is not liable to pay Integrated Goods and Services Tax on the testing services provided to its overseas group entities.
The applicant may carry out export of service under LUT/Bond without payment of IGST or may carry out export with payment of IGST and claim refund later on.
04. HEARING
The case was taken up for preliminary hearing on

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Dy. Commr. S. T. (PUNE-BST-E-001), Pune Division, Pune appeared and stated that they will be making detailed submissions in due course.
The application was admitted and final hearing was held on 29,08.2018, Sh. Mihir Mehta, Advocate along with Sh. Suyog Bhave Advocate and Sh. Sandeep Deshmukh, D G M Finance appeared and made oral and written submissions and requested time for further submissions before 06.09.2018.
The jurisdictional officer, Sh. Ramesh Phadtare, Dy. Commr. S. T. (PUNE-BST-E-001), Pune Division, Pune appeared and made written submissions.
05. OBSERVATIONS
5.1 We have perused the records on file and gone through the facts of the case and the submissions made by the applicant and the department.
5.2 facts of the subject matter are that the Applicant has entered into service agreement for providing testing services in relation to the prototype goods supplied by their overseas clients. The tests are directly carried out on the prototype goods provided by the overseas

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of service in the course of Inter-State trade,
5.4 Now we take the opportunity to discuss whether the supply of service by the applicant in this case attracts the provisions of Section 2(6) of the IGST Act, so as to be treated as an export of service so as to qualify as “Zero rated supply” under the provisions of Section 16 of the IGST Act.
5.5 An exporter of services in the case of Inter-State trade must satisfy all the conditions of Section 2(6) of the IGST Act which is reproduced as under:-
Section 2(6) “export of services” means the supply of any service when,-
(i) the supplier of service is located in India;
(ii) the recipient of service is located outside India;
(iii) the place of supply of service is outside India;
(iv) the payment for such service has been received by the supplier of service in convertible foreign exchange; and
(v) the supplier of service and the recipient of service are not merely establishments of a distinct person in accordance with Explana

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ervices specified in sub-sections (3) to (13) of Section 13 of the IGST Act. We agree with the applicant that sub-sections (4) to (13) of the said Section 13 are irrelevant in the present case for the purpose of determination of the “place of supply” of the testing services provided by them to their overseas clients and therefore we restrict ourselves to the provisions of sub-section (3) of Section 13 of the IGST Act, which is as under:-
Section 13 (3) The place of supply of the following services shall be the location where the services are actually performed, namely:-
(a) services supplied in respect of goods which are required to be made physically available by the recipient of services to the supplier of services, or to a person acting on behalf of the supplier of services in order to provide the services:
Provided that when such services are provided from a remote location by way of electronic means, the place of supply shall be the location where goods are situated at the ti

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. From a reading of the agreement it is very clear that the testing activities that are carried out include Functional tests, Electrical tests, Mechanical tests, Life cycle tests, Endurance tests, Illumination tests, Environmental tests, Software tests, Product robustness tests, etc. The facts and situation in the present case clearly attract the provisions of Section 13 (3)(a) of the IGST Act and therefore it can be inferred that the said services of testing of the protypes, which are physically made available by the service receiver to the service provider, are provided in India and therefore liable to tax.
5.9 The argument of the applicant is that the services provided by the applicant in this case, as per the agreement, are completed only when the test reports are sent to their overseas clients is not tenable for the reason that first of all the service of testing provided by the applicant on the basis of examination and physical verification of prototypes is in respect of verific

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its further use or otherwise by the service recipient as we can clearly see that even if the findings of test report are not used in any way by the service recipient, it cannot be said that the service of testing is not provided by the applicant to the service recipient as the provision of testing services as per the agreement between them is clearly there whether or not the test report is used by the service recipient. Thus the applicant's argument does not hold any ground and we are of the opinion that in the present case it can safely be inferred from a reading of the provisions of Section 13(3) that the services supply of which has been rendered by the applicant to their overseas client as per the agreement is taxable under IGST Act.
5.10 Further we specifically find that in the SGS case cited by the applicant, the facts are different. In that case the overseas clients of SGS used the services of SGS in inspection/ test analysis of the goods which the clients located abroad inten

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In Re: M/s Nagaur Mukangarh Highways Pvt. Ltd.
GST
2018 (10) TMI 1146 – AUTHORITY FOR ADVANCE RULING, RAJASTHAN – 2018 (18) G. S. T. L. 652 (A. A. R. – GST)
AUTHORITY FOR ADVANCE RULING, RAJASTHAN – AAR
Dated:- 15-9-2018
ADVANCE RULING NO. RAJ/AAR/2018-19/17
GST
NITIN WAPA AND SUDHIR SHARMA, MEMBER
Present for the applicant: Ms. Khushboo Kundalia and Mr. Madhav Kalani, Authorised Representative
Note: Under Section 100 of the CGST/RGST Act 2017, an appeal against this ruling lies before the Appellate Authority for Advance Ruling constituted under section 99 of CGST/RGST Act 2017, within a period of 30 days from the date of service of this order.
The issue raised by M/s. Nagaur Mukangarh Highways Pvt. Ltd. (hereinafter referred as the applicant also) is fit to pronounce advance ruling as it fails under ambit of the Section 97(2) (a), it is given as under:
(d) Admissibility of input tax credit of tax paid or deemed to have been paid.
Further, the applicant bei

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ate laning of the sections of State highway (hereinafter referred to as Project) on design, build, operate /maintain and transfer (hereinafter referred to as 'DBOT') basis under a contract (hereinafter referred to as 'Project') with Public Works Department (PWD). Government of Rajasthan (hereinafter referred to as 'Authority ).
2. Scope of the Contract:
Under the Contract, the applicant has been engaged as a “Concessionaire' wherein the Authority has granted concession to Construct, Operate and Maintain the Project during:-
a. The construction period shall commence from the appointed date and will end on the COD.
b. A period of 10 years from the (hereinafter referred to as 'DBOT').
c. The applicant shall receive 50% of the project cost (i.e. cost of construction) which shall be paid to the applicant in five equal installments during the construction period on the basis of achievement of milestones i.e. achieving specified percentage of physical progress.
d. The applicant shall re

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to the applicant, Ms Khushboo Kundalia and Mr. Madhav Kalani appeared as representative of the applicant for personal hearing on 10.08.2018 and submitted documents and notifications related to projects. They reiterated the submissions already made in the Advance Ruling Application and requested that the case may be decided at earliest.
5. issues to be decided :
The applicant has sought advance ruling as to whether they are eligible to:
(a) Claim full ITC pertaining to procurement of goods and services for construction of the project during the Construction Period, as the entire revenue received during the said period is subject to GST; and
(b) Claim ITCs pertaining to procurement of goods and services during the O & M period after reversal of ITC as per Section 17(2) of the Central Goods and Services Tax Act, 2017 read with Rule 42 of the Central Goods and Services Tax Rule, 2017 as Annuity Payment received during the said period is exempt whereas 0 & M payments received are subje

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2017-CT (rate) dated 28.06.2017 as amended vide notification No. 32/2017-CT(Rate) dated 13.10.2017.
(iii) The contention of the applicant is tenable because the services provided by the applicant are taxable under SAC 9954 and annuity received by them after completion of work.
(iv) The Entry No 23A inserted vide notification No. 32/2017 ibid in Notification 12/2017-CT (rate) dated 28.06.2017 is not applicable to the applicant.
(v) Entry No 27 and 23A of Notification No. 12:12017 ibid exempts to Toll Fee which was being paid on the spot to access road or bridges or paid as annuity.
(vi) The annuity received by the applicant is liable to tax and cannot be included in entry No. 23A.
7. Findings:
7.1 We have gone through the content of advance ruling application made by the applicant, submission made at the time of personal hearing, and comments of officer concerned and find that the applicant M/s Nagaur Mukangarh Highways Pvt. Ltd is providing 'work contract service' as defined unde

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2017 as Annuity Payment received during the said period is exempt whereas O & M payments received are subject to GST.
7.3 Before deciding the issue, it would be appropriate to appreciate the legal provision 'in this regard It is a fact that the applicant is providing the services of construction of roads and bridges on design, build, operate and transfer (DBOT) basis which is a composite supply as defined under clause 30 of section 2 of the CGST Act, 2017 which reads as under:
“composite (30) supply' means a supply made by a taxable person to a recipient consisting of two or more taxable supplies of goods or services or both, or any combination thereof, which are naturally bundled and supplied in conjunction with each other in the ordinary course of business, one of which is a principal supply;
 
7.4 Further, these supplies are in relation to construction of immovable property like roads and bridges and it can be termed as 'Work Contract' in terms of Section 2(119) of CGST Ac

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l installments along with interest starting from 180 days of COD. Thus the applicant is liable to pay applicable GST on the full value of the project during the construction period of 2 years.
7.6 Section 13 of CGST Act, 2017 specifies time and value of supply of services which is as under:-
13. Time of supply of services-
(1) The liability to pay tax on services shall arise at the time of supply, as determined in accordance with the provisions of this section.
(2) The time of supply of services shall be the earliest of the following dates, namely:-
(a) the date of issue of invoice by the supplier, if the invoice is issued within the period prescribed under sub-section (2) of Section 31 or the date of receipt of payment, whichever is earlier; or
(b) the date of provision of service, if the invoice is not issued within the period prescribed under sub-section (2) of section 31 or the date of receipt of payment, whichever is earlier; or
(c) the date on which the recipient shows

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o awarded the work of Operation & Maintenance of the said project for the period of 10 years, During this period, the applicant will also receive 50% of the project cost, as annuity, alongwith interest. The applicant contended that the said annuity is exempted under entry No. 23A of the Notification 12/2017-CT (rate) dated 28.06.2017. The contention of the applicant is not tenable as entry No 23A ibid pertains to SAC 9967 which is for support services of transport services whereas the services provided by the applicant is classifiable under SAC 9954 which is liable to tax at the applicable rate of GST. In the given circumstances the applicant has to pay GST on full value of cost of project during the period of construction. The annuity received by the applicant is already GST paid during the construction period for which they are also paid interest by the Government.
7.8 Now we come to the main question of the applicant as to whether they are entitled to claim Input Tax Credit in the

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the purposes of his business.
(2) Where the goods or services or both are used by the registered person partly for effecting taxable supplies including zero-rated supplies under this Act or under the Integrated Goods and Services Tax Act and partly for effecting exempt supplies under the said Acts, the amount of credit shall be restricted to so much of the input tax as is attributable to the said taxable supplies including zero-rated supplies.
(3) The value of exempt supply under sub-section (2) shall be such as may be prescribed, and shall include supplies on which the recipient is liable to pay tax on reverse charge basis, transactions in securities, sale of land and, subject to clause (b) of paragraph 5 of Schedule II, sale of building.
(4) A banking company or a financial institution including a non-banking financial company, engaged in supplying services by way of accepting deposits, extending loans or advances shall have the option to either comply with the provisions of sub-

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(ii) for transportation of goods;
 (b) the following supply of goods or services or both:-
(i) food and beverages, outdoor catering, beauty treatment, health services, cosmetic and plastic surgery except where an inward supply of goods or services or both of a particular category is used by a registered person for making an outward taxable supply of the same category of goods or services or both or as an element of a taxable composite or mixed supply;
(ii) membership of a club, health and fitness centre;
(iii) rent-a-cab, life insurance and health insurance except where
(A) the Government notifies the services which are obligatory for an employer to provide to its employees under any law for the time being in force; or
(B) such inward supply of goods or services or both of a particular category is used by a registered person for making an outward taxable supply of the same category of goods or services or both or as part of a taxable composite or mixed supply; and

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al consumption;
(h) goods lost, stolen, destroyed, written off or disposed of by way of gift or free samples; and
(i) any tax paid in accordance with the provisions of sections 74, 129 and 130.
(6) The Government may prescribe the manner in which the credit referred to in sub-sections (1) and (2) may be attributed.
Explanation. For the purposes of this Chapter and Chapter VI, the expression “plant and machinery” means apparatus, equipment, and machinery fixed to earth by foundation or structural support that are used for making outward supply of goods or services or both and includes such foundation and structural supports but excludes-
(i) land, building or any other civil structures;
(ii) telecommunication towers; and
(iii) pipelines laid outside the factory premises.
7.10 The applicant is providing 'work contract service' for construction of road and the issue is to be clarified whether they are restricted to claim input Tax Credit in terms of clause (c) or (d) of sub-sectio

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ods and services after reversing the ITC under Section 17(2) of the CGST Act 2017 read with Rule 42 of the Central Goods and Services Tax Rule, 2017 as Annuity Payment received during the O & M period is exempted and payment received for O&M is subject to GST. As discussed herein above the annuity received by them for the construction of road and bridges is classifiable under SAC 9954 and liable to tax at the applicable rate of GST. The applicant has not spec fled whether they are supplying any other exempted goods and services during the operation and maintenance period. If they are not supplying any exempted goods and services during the O & M period, the provision of section 17(2) of the CGST Act, 2017 are not applicable upon the applicant. The annuity received by the applicant is a payment of the remaining 50% of cost of the project in biannual equal instalments on which the applicant would be paying GST during the construction period. As the annuity so received by the applicant is

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In Re: SHUBHLAXMI COLD STORAGE & ICE FACTORY PRIVATE LIMITED
GST
2018 (10) TMI 1141 – AUTHORITY FOR ADVANCE RULING, RAJASTHAN – 2018 (18) G. S. T. L. 634 (A. A. R. – GST)
AUTHORITY FOR ADVANCE RULING, RAJASTHAN – AAR
Dated:- 15-9-2018
ARN No. RAJ/AAR/2018-19/18
GST
SHRI NITIN WAPA AND SUDHIR SHARMA, MEMBER
Present for the Applicant: Mr. Anand Prakash Arora (Director)
Note: Under Section 100 of the CGST/RGST Act 2017, an appeal against this ruling lies before the Appellate Authority for Advance Ruling constituted under section 99 of CGST/RGST Act 2017, within a period of 30 days from the date of service of this order.
The Issue raised by M/s. Shubhlaxmi Cold Storage And Ice Factory Pvt. Ltd, Sukhdham, Pushkar Road, Ramnagar, Ajmer (Raj.) 305004 (hereinafter referred to as 'Applicant' also) is fit to pronounce advance ruling as it falls under ambit of the Section 97(2)(b) and (e), it is given as under:
(b) Applicability of a notification issued under provisions

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cultural produce” means any produce out of cultivation of plants and rearing of all life forms of animals, except the rearing of horses, for food, fibre, fuel, raw material or other similar products, on which either no further processing is done or such processing is done as is usually done by a cultivator or producer which does not alter its essential characteristics but makes it marketable for primary market.”
According to Applicant eggs are produce of live chicken farming and are not further processed. Hence their storage in cold storage is covered by above definition prescribed under these notification and has argued that service of storing fresh eggs should not be chargeable under GST.
2. QUESTION(S) ON WHICH THE ADVANCE RULING IS SOUGHT
The Applicant has sought ruling to be pronounced under section 97(2) (b) and (e) of the CGST Act 2017, on the following questions:
Whether charges received by the cold storage for providing service of storing of eggs, which is produce of rear

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soil for the growing of crops and rearing of animals to provide food, wool and other products.” Thus Eggs fall under the category of Agricultural Products and hence services of loading, unloading, packaging, storage or warehousing of agriculture produce are covered under the above notification.
4. FINDING, ANALYSIS AND CONCLUSION
4.1 We have gone through the content of the Advance Ruling Application filed by applicant, submission made at the time of personal hearing and comments of the jurisdictional officer and find that the applicant has facility of cold storage house and therefore is supplier services of storage and warehousing to variety of agriculture produce.
4.2 The Applicant has sought Advance Ruling on applicability of Entry No. 24 of the Notification No. 11/2017 Central tax (Rate) dated 28/06/2017 and Entry No. 54 of the Notification No. 12/2017 Central tax (Rate) dated 28/06/2017. The applicant has sought advance ruling on matter whether charges received by the cold sto

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renting or leasing of agro machinery or vacant land with or without a structure incidental to its use;
(e) loading, unloading, packing, storage or warehousing of agricultural produce;
(f) agricultural extension services;
(g) services by any Agricultural Produce Marketing Committee or Board or services provided by a commission agent for sale or purchase of agricultural produce;
(h) services by way of fumigation in a warehouse of agricultural produce”
4.3 For the purpose of above notification 'agriculture produce' has been defined in clause (d) of para 2 of Notification No. 12/2018 ibid, which is as under:
“(d) 'agricultural produce' means any produce out of cultivation of plants and rearing of all life forms of animals, except the rearing of horses, for food, fibre, fuel, raw material or other similar products, on which either no further processing is done or such processing is done as is usually done by a cultivator or producer which does not alter its essential characterist

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In Re: M/s. Solairedirect India LLP (Solai Redirect India LLP)
GST
2018 (10) TMI 1046 – AUTHORITY FOR ADVANCE RULING, RAJASTHAN – 2018 (18) G. S. T. L. 314 (A. A. R. – GST)
AUTHORITY FOR ADVANCE RULING, RAJASTHAN – AAR
Dated:- 15-9-2018
RAJ/AAR/2018-19/16
GST
NITIN WAPA, AND SUDHIR SHARMA
Present for the applicant: Mr. Sumit Rahi (C.F.O.) and Ms Sagar Shah (G.S.T.P)
Note: Under Section 100 of the CGST/RGST ACT 2017, an appeal against this ruling lies before the Appellate Authority for Advance Ruling constituted under section 99 of CGST/RGST Act 2017, within a period of 30 days from the date of service of this order.
The Issue raised by the applicant is fit to pronounce advance ruling as it falls under ambit of the Section 97(2) (a), it is given as under:
(a) Classification of any goods or services or both;
Further, M/s. Solairedirect India LLP the applicant being a registered person, GSTIN is 08ADEFS5194G1ZR, as per the declaration given by him in Form ARA-01

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system and access is granted to the Applicant for executing the project on turnkey basis.
1.4 The steps involved in execution of a contract by the Applicant are as below:
1.4.1 Planning for the project
The Applicant submits the Implementation schedule which is approved by the purchaser. The Applicant remains responsible for ensuring compliance with the documentation, related drawings, data sheets, technical specifications, measurements while discharging obligations under the contract.
1.4.2 Procurement of materials
The solar panels and other ancillary materials are then procured by the Applicant and delivered to the power generating system's site, The risk of loss for all equipment and material is transferred to the purchaser on delivery at the project site.
1.4.3 Civil works at the site
Post receiving the access to the project site, applicant Starts with the civil works which involves creating of foundations for erection of the solar panels.
1.4.4 Erection, commissioning and

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ntracts in question is a working solar power generating system, duly connected with the grid for transmission of electricity and the electricity being generated seamlessly as per the technical specifications (like voltage, etc) of the Applicant's customer.
1.6 Applicant has sought to classify the supply of solar power generating system as a composite supply with solar panels being the principal supply under HSN 8541 basis the nature of the product and after considering relevant chapter notes and section notes. Notification No 1/2017 – Integrated Tax (Rate) dated June 28, 2017 prescribes applicable rate of IGST). Photovoltaic cells supplied by Applicant classifiable under Chapter Heading 8541are covered under Schedule I of the said Notification and accordingly liable to 5% IGST.
1.7 Applicant wishes to understand whether the solar panels could be said to be the principal supply and the supply of solar power generating system along with all components could be said to composite supply

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els (5% under the heading 8541) should be applicable on the entire contract value. According to him in the instant case, the individual components (like solar panels, inverters, cables, etc.) are not being sold individually. The intention of the parties is to enter into a contract for set up of a power generating system and not for the purchase of the individual components as such. Also, the individual components would not be of use as such unless they are assembled at the site (which would involve element of service) to work as a unit resulting in set up of the power generating system. This implies that the individual components or the services are supplied in conjunction with each other as these are not being sold as such but as a complete unit.
The Applicant submitted that the contract undertaken is for supply of goods to customer and setting up power generating system wherein the installation/ assembly services are also included for the supply of goods. Accordingly, it can be seen

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or the services are supplied in conjunction with each other as these are not being sold as such but as a complete unit.
The Applicant submitted that the contract undertaken is for supply of goods to customer and setting up power generating system wherein the installation/ assembly services are also included for the supply of goods. Accordingly, it can be seen that the goods and services are naturally bundled in the ordinary course of business with the primary intention being to get a complete and operational solar power generating system.
The Applicant in support of his submission has also stated certain overseas GST and VAT jurisdictions like United Kingdom ('UK'), European Union ('EU') and Australia.
3.2 The Applicant submitted that the supply of solar panels is the principal supply in the composite supply of solar power generating system hence the tax rate applicable on the solar panels is 5% under the heading 8541 should be applicable to the entire contract value and has relied

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ew of entry 234 and hence would be liable to 5% IGST.
3.3 The Applicant has further submitted that if the contract is not to be considered as composite supply, it should be considered as two separate supplies of goods and services with goods being taxed at the rate of 5% and services being taxed at the rate of 18%.
The two parts in the contract in question are the supply of solar panels and ancillary equipment like invertors, transformer, wires, cables, etc and the allied services supplied under the contract. He submitted that applicable tax rates on these products should be 5% under heading 8541 as detailed in our submissions in Para 3.
Another element of the contract is the allied services. The services involved in the contract in question should be taxed at 18% in terms of the notification no 8/2017 -Integrated Tax (Rate) dated 28 June 2017.
3.4 The Applicant stated that the EPC Contract cannot be classified as a works contract in relation to immovable property or a mixed supply

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y Spinning Mills (P) Ltd Vs The Inspector General of Registration =2013 (3) TMI 681 – MADRAS HIGH COURT.
* Commissioner of Central Excise, Ahmedabad Vs Solid & Correct Engineering Works =2010 (4) TMI 15 – SUPREME COURT.
* Selvel Advertising Private Limited Vs Commercial Tax Officer, Alipore Charge = 1992 (5) TMI 182 – WEST BENGAL TAXATION TRIBUNAL.
* Jaiprakash Industries Limited Vs Commissioner of Commercial Taxes, Uttarakhand = 2010 (7) TMI 884 – UTTARAKHAND HIGH COURT.
* Sirpur Paper Mills Ltd. Vs Collector of Central Excise, Hyderabad =1997 (12) TMI 109 – SUPREME COURT OF INDIA.
* Essar Telecom Infrastructure Pvt. Ltd. Vs Union of India etc = 2011 (4) TMI 234 – KARNATAKA HIGH COURT.
In the light of the above discussion, the Applicant submitted that that the solar power generating system cannot be said to be “attached to the earth” within the meaning of that expression as defined in section 3 of the Transfer of Property Act. Further it is attached to the land for its effe

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queries and sought clarification on them. He wanted to know that in case the above contract is not considered as composite supply, can it be split into two i.e. one of supply of goods and another of service and taxed accordingly. Secondly he wanted to know which goods would fall under entry no. 234 of the rate notification as solar generating system. They submitted few judicial precedents in support of their argument. Both these additional queries have been addressed in detail under the 5. Findings, Analysis and Conclusion of the order. Further they reiterated the submission already made in Advance Ruling Application pleaded that the case may be decided as per above submissions and requested the issue to be decided at the earliest.
4.2 The jurisdictional officer in his comments has stated that the applicant is executing the project on turnkey basis which involves planning, procurement, civil work, erection, commissioning, installation and project management services. Hence the nature

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cant is required to supply goods and services stated above, except solar panels. Solar panels procured by the customer are made available by the customer to the Applicant for assembly and erection.
As per submissions made in Advance Ruling Application the applicant undertakes Engineering, Procurement and Construction ('EPC') activities for Group companies as well as third parties for setup of solar power generating system where contract for commissioning of solar power generating system involves simultaneous supply of goods and services.
a) Applicant has not submitted copy of any specific EPC contract along with the Advance Ruling Application on which he would like to seek the Ruling. As per submission made by applicant in Advance Ruling Application and based on discussions during PH, the nature of work undertaken by applicant clearly falls under category of “Composite turnkey EPC contract”.
b) In a composite EPC contract the contractor has to, inter alia design, engineer, procure,

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issioning, Performance tests, Defect rectification.
vi. Generation of electricity and connection with the grid i.e. related interconnection facilities and other related infrastructure for evacuation of power (Evacuation Infrastructure).
vii. Apart from installation the contractor has to successfully test run the plant over certain period of time to check and ensure the optimum output (generation of electricity) as agreed upon in contract.
viii. Final acceptance and payment is done only after successful test run as per condition laid down in contract.
d) Under composite EPC turnkey contracts the intention of the owner is not to procure goods of solar power generating system but to procure a completely functional solar power plant as a whole wherein applicant undertakes end to end responsibility of supply of equipments of solar power plant including designing, engineering, supplies, installation to technical specification, testing and commissioning of a functional solar power plan

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ith the principal supply being the solar panels and accordingly, the tax rate of solar panels (5% under the heading 8541) should be applicable on the entire contract value.
i) As can be seen, the above entry is under the notification describing the Tax rate on 'Goods'. The entry reads as “renewable energy devices & parts for their manufacture”. If the transaction is only of supply of goods then the applicable Schedules would have to be seen but the intent of parties is always for supply of Solar Power Generating System as a whole which includes supply, installation, testing and commissioning and it is not chattel sold as chattel. It is not a contract of supply of solar power generating system or its parts but an EPC contract where the contractor has to, inter alia design, engineer, procure, transport, deliver, develop, erect, install, test and commission the project. Under composite EPC turnkey contracts the intention of the owner and the contractor is not to procure goods of solar po

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sferred from one place to another without substantial damage hence same should qualify as movable property. Hence in view of above precedence and facts of the case, the given supply should be treated as supply of Solar Power Plant Only.
I) As per the terms and conditions usually laid in EPC Contract the contractor i.e. the applicant has to undertake activities from engineering, design, to procurement of the material and has also to test and commission a functional plant before Final Acceptance. In contracts of such a nature, the liability of the contractor doesn't end with the procuring of materials but it extends till the successful testing and commissioning of the system. The transaction is not of mixed or composite supply but is of a 'work contract' but it is for us to decide whether it is a 'work contract' in terms of GST Act also, so, we come to the crux of the issue, which is as to whether the transaction results into any immovable property. The term 'immovable property' has not

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upervision of erection and commissioning of four sets of Hydraulic Mudguns and Tap Hole Drilling Machines required for blast furnace Nos. 4 and 6 of the Bhilai Steel Plant. For this purpose, it imported several components and also manufactured some of the components at their factory in Marai Malai Nagar, Chennai. These components were transported to the site at Bhilai where the manufacture and commissioning of the aforesaid machines took place. It is undisputed that duty was paid in respect of the components manufactured at its workshop in Chennai, but no duty was paid on manufacture of the aforesaid Mudguns and Drilling Machines which were erected and commissioned on site.
In their reply to the show cause, the respondents explained the processes involved, the manner in which the equipments were assembled and erected as also their specifications in terms of volume and weight. It was explained that the function of the drilling machine is to drill hole in the blast furnace to enable the

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tform described as the cast house floor which is in the nature of a concrete platform around the furnace. The cast house floor is at a height of 25 feet above the ground level. On this platform concrete foundation intended for housing drilling machine and mudgun are erected. The concrete foundation itself is 5 feet high and it is grouted to earth by concrete foundation. The first step is to secure the base plate on the said concrete platform by means of foundation bolts. The base plate is 80 mm mild sheet of about 5 feet diameter. It is welded to the columns which are similar to huge pillars. This fabrication activity takes place in the cast house floor at 25 feet above ground level. After welding the columns, the base plate has to be secured to the concrete platform. This is achieved by getting up a trolley way with high beams in an inclined posture so that base plate could be moved to the concrete platform and secured. The same trolley helps in the movement of various components to t

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it is a physical and engineering impossibility to assemble mudguns or the drill tap hole machines elsewhere in a fully assembled condition and thereafter erect or install the same at a height of 25 feet on the cast floor of the blast furnace. She found that even the Adjudicating Authority conceded the fact that the equipments have to be assembled/erected on the base frame projection of the furnace. She also accepted the submission urged on behalf of the appellant that if the machines are to be removed from the blast furnace, they have to be first dismantled into parts and brought down to the ground only by using cranes and trolley ways considering the size, and also considering the fact that there is no space available for moving the machines in assembled condition due to their volume and weight. She considered the authorities on the subject and came to the conclusion that erection of mudgun and tap hole drilling machine results in erection of immovable property. She noticed the judgm

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be dismantled and reassembled or re-erected at another place for such use, such chattel would be immovable. In the present appeal, even according to the finding of the Collector, mudguns and drill tap hole machines have to be dismantled and disassembled from the cast floor before being erected or assembled elsewhere. We have also arrived at the same conclusion independently, in para 10 above.
Accordingly applying the test laid down by the Supreme Court we hold that the erection and installation of mudguns and drill tap hole machines result in immovable property. In the light of the ratio of the above case law, we hold that the mudguns and tap hole drilling machines do not admit of the definition of goods and, therefore, excise duty is not leviable thereon”.
The core question that still survives for consideration is whether the processes undertaken by the appellant at Bhilai for the erection of mudguns and drilling machines resulted in the emergence of goods leviable to excise duty

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each tank being about 30 feet in height 50 feet in diameter weighing about 40 tons. The tanks were connected with pump house with pipes for pumping petroleum products into the tank and sending them back to the pump house. The question arose in the context of ascertaining the rateable value of the structures under the Bombay Municipal Corporation Act. The High Court held that the tanks are neither structure nor a building nor land under the Act. While allowing the appeal this Court observed :-
“The tanks, though, are resting on earth on their own weight without being fixed with nuts and bolts, they have permanently been erected without being shifted from place to place. Permanency is the test. The chattel whether is movable to another place of use in the same position or liable to be dismantled and re-erected at the later place? If the answer is yes to the former it must be a movable property and thereby it must be held that it is not attached to the earth. If the answer is yes to th

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d erection at the site in the steel plant, they must nevertheless be deemed as individual machines having specialized functions. We are not impressed by this reasoning, because it ignores the evidence brought on record as to the nature of processes employed in the erection of the machine, the manner in which it is installed and rendered functional, and other relevant facts which may lead one to conclude that what emerged as a result was not merely a machine but something which is in the nature of being immovable, and if required to be moved, cannot be moved without first dismantling it, and then re-erecting it at some other place. Some of the other decisions which we shall hereafter notice clarify the position further.
In Quality Steel Tubes (P) Ltd. v. Collector of Central Excise, UP – 1995 (75) E.L.T. 17 (S.C.) = 1994 (12) TMI 75 – SUPREME COURT OF INDIA; the facts were that a tube mill and welding head were erected and installed by the appellant, a manufacturer of steel pipes and t

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le or capable of being brought to market. Goods which are attached to the earth and thus become immoveable do not satisfy the test of being goods within the meaning of the Act nor it can be said to be capable of being brought to the market for being bought and sold. Therefore, both the tests, as explained by this Court, were not satisfied in the case of appellant as the tube mill or welding head having been erected and installed in the premises and embedded to earth they ceased to be goods within meaning of Section 3 of the Act.”
In Mittal Engineering Works Pvt. Ltd. v. CCE – 1996 (88) E.L.T. 622 (S.C.) = 1996 (11) TMI 66 – SUPREME COURT OF INDIA; this Court was concerned with the exigibility to duty of mono vertical crystallisers which are used in sugar factories to exhaust molasses of sugar. The material on record described the functions and manufacturing process. A mono vertical crystaliser is fixed on a solid RCC slab having a load bearing capacity of about 30 tons per square mete

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hat the mono vertical crystalliser has to be assembled, erected and attached to the earth by a foundation at the site of the sugar factory. It is not capable of being sold as it is, without anything more. This Court, therefore, concluded that mono vertical crystallisers are not “goods” within the meaning of the Act and, therefore, not exigible to excise duty. In Triveni Engineering & Indus. Ltd. v. CCE – 2000 (120) E.L.T. 273 = 2000 (8) TMI 86 – SUPREME COURT OF INDIA; a question arose regarding excisability of turbo alternator. In the facts of that case, it was held that installation or erection of turbo alternator on a concrete base specially constructed on the land cannot be treated as a common base and, therefore, it follows that installation or erection of turbo alternator on the platform constructed on the land would be immovable property, as such it cannot be an excisable goods falling within the meaning of Heading 85.02. In reaching this conclusion this Court considered the ear

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facts and circumstances of each case.”
It was also held that the decision of this Court in Sirpur Paper Mills Ltd. v. Collector of Central Excise, Hyderabad – 1998 (97) E.L.T. 3 (S.C.) = 1997 (12) TMI 109 – SUPREME COURT OF INDIA. must be viewed in the light of the findings recorded by the CEGAT therein, that the whole purpose behind attaching the machine to a concrete base was to prevent wobbling of the machine and to secure maximum operational efficiency and also safety. In view of those findings it was not possible to hold that the machinery assembled and erected by the appellant at its factory site was immovable property as something attached to earth like a building or a tree.
Keeping in view the principles laid down in the judgments noticed above, and having regard to the facts of this case, we have no doubt in our mind that the mudguns and the drilling machines erected at site by the appellant on a specially made concrete platform at a level of 25 feet above the ground on a ba

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e in hand. It cannot be disputed that such drilling machines and mudguns are not equipments which are usually shifted from one place to another, nor it is practicable to shift them frequently. Counsel for the appellant submitted before us that once they are erected and assembled they continue to operate from where they are positioned till such time as they are worn out or discarded. According to him they really become a component of the plant and machinery because without their aid a blast furnace cannot operate, it is not necessary for us to express any opinion as to whether the mudgun and the drilling machines are really a component of the plant and machinery of the steel plant, but we are satisfied that having regard to the manner in which these machines are erected and installed upon concrete structures, they do not answer the description of “goods” within the meaning of the term in the Excise Act.
Thus, it can be seen that the Hon. Supreme Court while holding the machines as immo

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mp sum price for the entire contract. Hence the said EPC contract cannot be split in two separate contracts one of supply of goods and another that of services and taxed accordingly.
n) Explanations covered under point i) and m) of 5. Findings, Analysis and Conclusion satisfactorily addresses additional queries raised by applicant during personal hearing.
6. Based on above facts along with provision of law it is observed: –
1) That the Solar Power Plant is a big project and has a permanent location as it is meant for onward sale of power to the consumer. Contract between an EPC contractor and the counter-party is entered into on the premise that the plant would continue to be situated at the place of construction. Such plant would therefore have an inherent element of permanency.
2) The output of the project i.e. Electricity, would be available to an identifiable segment of consumer. Thus this output supply would involve an element of permanency for which it would not be possible a

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which there is a single lump sum price for the entire contract. Hence for convenience of contractor the said EPC contract cannot be split in two separate contracts one for supply of goods and another for supply of services and taxed accordingly.
6) An Overview of all makes us observe that the impugned transaction for EPC Contract for the Solar Power Plant which includes engineering, design, procurement, supply, development, testing and commissioning is a “works contract” in terms of clause (119) of section 2 of the GST Act.
7) Since the impugned transaction for EPC Contract for the Solar Power Plant is a works contract under section 2(119) as supply of services hence question of principal supply does not arise and so GST tax rate of Solar power Generating System under notification No 01/2017-CT (Rate) dated 28.06.2017, at S. No. 234, under HSN Classification 84, 85 and 94 is not applicable.
RULING
As per the statement of facts submitted by the applicant, the scope of work in respec

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New Guidelines on GST Refund Claims for UIN Entities: Streamlined Process to Enhance Efficiency and Transparency.
Circulars
GST
Clarification regarding processing of refund claims filed by UI

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New Rules for Inspecting Goods in Transit: Streamlined Process for Detaining, Releasing, and Confiscating under GST Regulations.
Circulars
GST
Modification of the procedure for interception o

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ITC 04 GST return -Service provider as a job worker – to be filed or not to be filed
Query (Issue) Started By: – venkataraman swaminathan Dated:- 14-9-2018 Last Reply Date:- 14-9-2018 Goods and Services Tax – GST
Got 4 Replies
GST
Dear Sir
We are a job worker doing job work for our customer " X " . Registered with GST and paying GST undder SAC code.
Customer is giving all raw materials / components etc. and doiong machining / assembly and send back the FG to sutomer under DC .For our Labour charges we are paying GST under SAC Code.
for the Raw materials /components given by our Principal/ ie. by our customer , we need to send WIP components to our s/c vendors for further processing like machining / plating / painti

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Composition rate of tax to Bakery
Query (Issue) Started By: – Ravikumar Doddi Dated:- 14-9-2018 Last Reply Date:- 26-7-2019 Goods and Services Tax – GST
Got 3 Replies
GST
Dear sir,
Dealer is running bakery, he manufacture some of the items like, cakes, pastries, bread and like items and he will also trade biscuits and chocolates, cool drinks getting it from GST dealers , doing across the counter sales and partly service. Kindly clarify what is the rate of tax in composition.
Repl

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GST late fee waiver scheme launched and GSTR1 filing date extended*
By: – Sandeep Rawat
Goods and Services Tax – GST
Dated:- 14-9-2018

GST late fee waiver scheme launched and GSTR-1 filing date extended*
It has been observed that the number of taxpayers who have filed FORM GSTR-3B is substantially higher than the number of taxpayers who have furnished FORM GSTR-1.
✔Non-furnishing of FORM GSTR-1 is liable to late fee and penalty as per the provisions of the GST law.
✔In order to encourage taxpayers to furnish FORM GSTR-1, a one-time scheme to waive off late fee payable for delayed furnishing of FORM GSTR-1 for the period from July, 2017 to September, 2018 till 31.10.2018 has been launched.
✔In this

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, or whose principal place of business is in Kodagu (Karnataka) and Mahe (Puducherry), the due date for furnishing FORM GSTR-1 for the quarter July, 2018 to September, 2018 would continue to remain as 15th November, 2018 as notified vide notification No. 38/2018-Central Tax dated 24th August, 2018.
✔ Further, for those taxpayers who will now be migrating to GST as per the procedure specified in notification No. 31/2018-Central Tax, dated 06.08.2018, the last date for furnishing the details of outward supplies of goods or services or both in FORM GSTR-1 and for filing the return in FORM GSTR-3B for the months of July, 2017 to November, 2018 has been extended till 31.12.2018.
✔ Notification Nos. 45, 46 and 47/2018 – Central Ta

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LEVY OF GST ON EXTRA NEUTRAL ALCOHOL (ENA)
By: – Dr. Sanjiv Agarwal
Goods and Services Tax – GST
Dated:- 14-9-2018

The year 2018 so far has seen revival of demand of Indian Made Foreign Liquor (IMFL) by 2-3 percent, which was in negative for last two years. The slow down during 2016-2018 was mainly due to adverse effect of demonetization in November, 2016 followed by highway sale ban by Supreme Court in March, 2017 and then GST w.e.f. 1st July, 2017. The impact of all these reasons has now been stabilized and business is returning to near normal now.
On whether to include a alcoholic beverages and alcohol into GST ambit is still a big question mark. The GST Council, the supreme body to take decisions on GST under the Constitution, is expected to take first steps in this direction but that will happen only when all the states are on board. With opposition (political parties other than the ruling party at centre) still governing few States / Union Territories, consensus

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are required to be registered under GST Act and GST is to be levied on the supply of ENA @18% GST in terms of Entry No. 25 of Schedule-III of the Notification No. 1/2017-State Tax (Rate), dated 30.06.2017 and 1/2017-CT (Rate) dated 28.06.2018.
The relevant clarification reads as under:
“This is with reference to the issue raised on the captioned subject during the Video Conference held on 30.06.2018. This matter was discussed in the 20th meeting of GST Council on 05.08.17 wherein it was decided to obtain legal opinion of Attorney General of India. Attorney General of India vide reference no AGI 6/2017-Adv.C dt 03.12.18 has given following opinion on the issue:
'ENA typically contains 95% alcohol by volume and as such is not fit for human consumption. Under article 246A (1) read with 366(12A), GST cannot be levied on the supply of “alcoholic liquor for human consumption”. ENA that is used for manufacture of alcoholic liquor is not supply for the purpose of human consumption as it is

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jected to GST whereas output, i.e., alco-beverages being out of GST net, leading to enhanced cost of production without any set off benefit of input taxes in the form of GST.
While it may be technically correct to levy GST on ENA as it is not a potable liquor (meant for human consumption), yet it will bring in more distortions but of course, more revenue too to the exchequer. However, the VAT paid on the purchase of ENA can be used as a set-off on the VAT payable on sale of potable alcohol. But, if ENA is subject to the GST, input tax credit will no longer be available. While ENA is a major input for alco-beverage sector, it is also used in cosmetic, pharmaceutical and perfume formulations. There it would be allowed a set off and will therefore, be a welcome change.
GST or no GST, be it on raw material and inputs or the output supply, alco-beverage sector is facing challenge on costing front which accrues because of GST. The only possible solution lies in two fold strategy -one, to r

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Reconciliation Statement
GSTR – 09C
GST
2[FORM GSTR-9C
See rule 80(3)
PART – A – Reconciliation Statement
Pt. I
Basic Details
 
1
Financial Year
 
 
2
GSTIN
 
 
3A
Legal Name
< Auto>
 
3B
Trade Name (if any)
< Auto>
 
4
Are you liable to audit under any Act?
<< Please specify >>
 
 
 
(Amount in Rs.in all tables)
 
Pt. II
Reconciliation of turnover declared in audited Annual Financial Statement with turnover declared in Annual Return (GSTR9)
 
5
Reconciliation of Gross Turnover
 
A
Turnover (including exports) as per audited financial statements for the State / UT (For multi-GSTIN units under same PAN the turnover shall be derived from the audited Annual Financial Statement)
 
B
Unbilled revenue at the beginning of Financial Year
(+)
 
C
Unadjusted advances at the end of the Financial Year
(+)
 
D
Deemed Supply under Schedule I
(+)

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fter adjustments as above
 < Auto >
Q
Turnover as declared in Annual Return (GSTR9)
 
R
Un-Reconciled turnover (Q – P)
AT1
6
Reasons for Un – Reconciled difference in Annual Gross Turnover
A
Reason 1
<> 
B
Reason 2
<> 
C
Reason 3
<> 
7
Reconciliation of Taxable Turnover
A
Annual turnover after adjustments (from 5P above)
 < Auto >
B
Value of Exempted, Nil Rated, Non-GST supplies, No-Supply turnover
 
C
Zero rated supplies without payment of tax
 
D
Supplies on which tax is to be paid by the recipient on reverse charge basis
 
35[D1
Supplies on which tax is to be paid by ecommerce operators as per sub-section (5) of section 9 [Supplier to report]
]
E
Taxable turnover as per adjustments above 36[(A-B-C-D-D1)]
 < Auto >
F
Taxable turnover as per liability declared in Annual Return (GSTR9)
 
G
Unreconciled taxable turnover (F-E)
AT 2
8
Reasons for Un – Reconciled

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16[K-1
Others
 
 
 
 
]
37[K-2
Supplies on which ecommerce operator is required to pay tax as per sub-section (5) of section 9 [Ecommerce operator to report]
NA
 
 
 
]
L
Interest
 
 
 
 
 
M
Late Fee
 
 
 
 
 
N
Penalty
 
 
 
 
 
O
Others
 
 
 
 
 
P
Total amount to be paid as per tables above
 
 
 
 
 
Q
Total amount 38[payable] as declared in Annual Return (GSTR 9)
 
 
 
 
 
R
Un- reconciled payment of amount (PT1)
 
 
 
 
 
10
Reasons for un-reconciled payment of amount
A
Reason 1
<> 
B
Reason 2
<> 
C
Reason 3
<> 
11
Additional amount payable but not paid (due to reasons specified under Tables 6,8 and 10 above)
 
 
 
To be

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bsp;
 
Pt. IV
Reconciliation of Input Tax Credit (ITC)
12
Reconciliation of Net Input Tax Credit (ITC)
A
ITC availed as per audited Annual Financial Statement for the State/ UT (For multi-GSTIN units under same PAN this should be derived from books of accounts)
 
B
ITC booked in earlier Financial Years claimed in current Financial Year
(+)
 
C
ITC booked in current Financial Year to be claimed in subsequent Financial Years
(-)
 
D
ITC availed as per audited financial statements or books of account
 
E
ITC claimed in Annual Return (GSTR9)
 
F
Un-reconciled ITC
ITC 1
13
Reasons for un-reconciled difference in ITC
A
Reason 1
 <>
B
Reason 2
 <>
C
Reason 3
 <>
14
Reconciliation of ITC declared in Annual Return (GSTR9) with ITC availed on expenses as per audited Annual Financial Statement or books of account
 
Description
Value
Amount of Total ITC
Amount of eligible ITC availed
&nbsp

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gible ITC availed
 
 
<> 
S
ITC claimed in Annual Return (GSTR9)
 
 
 
T
Un-reconciled ITC (ITC 2)
 
 
 
15
Reasons for un – reconciled difference in ITC
A
Reason 1
<> 
B
Reason 2
<> 
C
Reason 3
<> 
16
Tax payable on un-reconciled difference in ITC (due to reasons specified in 13 and 15 above)
 
Description
 Amount Payable
Central Tax
 
State/UT Tax
 
Integrated Tax
 
Cess
 
Interest
 
Penalty
 
Pt. V
18[Additional Liability due to non-reconciliation]
 
 
 
 
 
 
 
 
To be paid through 41[cash or ITC]
Description
Value
Central tax
State tax / UT tax
 Integrated tax
Cess, if applicable
1
2
3
4
5
6
5%
 
 
 
 
 
29[6%]
 
 
 
 
 
12%
 
 
 
 
 
18%
 
 
 
&n

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;
 
 
 
 
 
Description
Payable
Paid
 
1
2
3
A
Integrated Tax
 
 
B
Central Tax
 
 
C
State Tax/UT Tax
 
]
20[Verification of registered person:
I hereby solemnly affirm and declare that the information given herein above is true and correct and nothing has been concealed there from. I am uploading this self-certified reconciliation statement in FORM GSTR-9C. I am also uploading other statements, as applicable, including financial statement, profit and loss account and balance sheet, etc.]
Signature
Place:
Date:
Name of Authorized Signatory
Designation/status
Instructions: –
1. Terms used:
(a) GSTIN: Goods and Services Tax Identification Number
2. It is mandatory to file all your FORM GSTR-1, FORM GSTR-3B and FORM GSTR -9 for the 3[current financial year] before filing this return. 4[For FY 2017-18,] the details for the period between July 2017 to March 2018 are to be prov

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d Annual Financial Statement includes reference to books of accounts in case of persons / entities having presence over multiple States.
5B
Unbilled revenue which was recorded in the books of accounts on the basis of accrual system of accounting in the last financial year and was carried forward to the current financial year shall be declared here. 5[For 14[FY 2017-18, 21[2018-19, 25[2019-20, 30[2020-21, 32[2021-22, 44[2022-23, 2023-24 and 2024-25]]]]]], the registered person shall have an option to not fill this table. If there are any adjustments required to be reported then the same may be reported in Table 5O.] In other words, when GST is payable during the financial year on such revenue (which was recognized earlier), the value of such revenue shall be declared here. (For example, if rupees Ten Crores of unbilled revenue existed for the financial year 2016-17, and during the current financial year, GST was paid on rupees Four Crores of such revenue, then value of rupees Four Cro

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f credit notes which were issued after 31st of March for any supply accounted in the current financial year but such credit notes were reflected in the annual return (GSTR-9) shall be declared here. 7[For 14[FY 2017-18, 21[2018-19, 25[2019-20, 33[2020-21, 2021-22, 47[2022-23, 2023-24 and 2024-25]]]]], the registered person shall have an option to not fill this table. If there are any adjustments required to be reported then the same may be reported in Table 5O.]
5F
Trade discounts which are accounted for in the audited Annual Financial Statement but on which GST was leviable (being not permissible) shall be declared here. 7[For 14[FY 2017-18, 21[2018-19, 25[2019-20, 33[2020-21, 2021-22, 48[2022-23, 2023-24 and 2024-25]]]]], the registered person shall have an option to not fill this table. If there are any adjustments required to be reported then the same may be reported in Table 5O.]
5G
Turnover included in the audited Annual Financial Statement for April 2017 to June 2017 shall b

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all have an option to not fill this table. If there are any adjustments required to be reported then the same may be reported in Table 5O.]
5J
Aggregate value of credit notes which have been accounted for in the audited Annual Financial Statement but were not admissible under Section 34 of the CGST Act shall be declared here. 9[For 14[FY 2017-18, 21[2018-19, 25[2019-20, 33[2020-21, 2021-22, 51[2022-23, 2023-24 and 2024-25]]]]], the registered person shall have an option to not fill this table. If there are any adjustments required to be reported then the same may be reported in Table 5O.]
5K
Aggregate value of all goods supplied by SEZs to DTA units for which the DTA units have filed bill of entry shall be declared here. 9[For 14[FY 2017-18, 21[2018-19, 25[2019-20, 33[2020-21, 2021-22, 52[2022-23, 2023-24 and 2024-25]]]]], the registered person shall have an option to not fill this table. If there are any adjustments required to be reported then the same may be reported in Table 5O

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s shall be declared here. 9[For 14[FY 2017-18, 21[2018-19, 25[2019-20, 33[2020-21, 2021-22, 54[2022-23, 2023-24 and 2024-25]]]], the registered person shall have an option to not fill this table. If there are any adjustments required to be reported then the same may be reported in Table 5O.]
5N
Any difference between the turnover reported in the Annual Return (GSTR9) and turnover reported in the audited Annual Financial Statement due to foreign exchange fluctuations shall be declared here. 9[For 14[FY 2017-18, 21[2018-19, 25[2019-20, 33[2020-21, 2021-22, 55[2022-23, 2023-24 and 2024-25]]]], the registered person shall have an option to not fill this table. If there are any adjustments required to be reported then the same may be reported in Table 5O.]
5O
Any difference between the turnover reported in the Annual Return (GSTR9) and turnover reported in the audited Annual Financial Statement due to reasons not listed above shall be declared here.
5Q
Annual turnover as declared in t

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e paid by the recipient shall be declared here. This shall be reported net of credit notes, debit notes and amendments if any.
56[7D1
Supplies on which tax is to be paid by e-commerce operators as per sub-section (5) of section 9 shall be declared here by the supplier.]
7E
The taxable turnover is derived as the difference between the annual turnover after adjustments declared in Table 7A above and the sum of all supplies (exempted, non-GST, 57[reverse charge, supplies made sub-under section (5) of section 9 etc.) declared in Table 7B, 7C, and 7D and 7D1 above.]
7F
Taxable turnover as declared in Table 58[(4N – 4G- 4G1)] + (10-11) of the Annual Return (GSTR9) shall be declared here.
8
Reasons for non-reconciliation between adjusted annual taxable turnover as derived from Table 7E above and the taxable turnover declared in Table 7F shall be specified here.
 
5. Part III consists of reconciliation of the tax payable as per declaration in the reconciliation statement and t

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e 6, 8 and 10 above shall be declared here.
 
6. Part IV consists of reconciliation of Input Tax Credit (ITC). The instructions to fill Part IV are as under:-
Table No.
Instructions
12A
ITC availed (after reversals) as per the audited Annual Financial Statement shall be declared here. There may be cases where multiple GSTINs (State-wise) registrations exist on the same PAN. This is common for persons / entities with presence over multiple States. Such persons / entities, will have to internally derive their ITC for each individual GSTIN and declare the same here. It may be noted that reference to audited Annual Financial Statement includes reference to books of accounts in case of persons / entities having presence over multiple States.
12B
Any ITC which was booked in the audited Annual Financial Statement of earlier financial year(s) but availed in the ITC ledger in the financial year for which the reconciliation statement is being filed for shall be declared here. This s

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2E) availed in the Annual Return (GSTR9) shall be specified here.
14
This table is for reconciliation of ITC declared in the Annual Return (GSTR9) against the expenses booked in the audited Annual Financial Statement or books of account. The various sub-heads specified under this table are general expenses in the audited Annual Financial Statement or books of account on which ITC may or may not be available. Further, this is only an indicative list of heads under which expenses are generally booked. Taxpayers may add or delete any of these heads but all heads of expenses on which GST has been paid / was payable are to be declared here. 12[For 15[FY 2017-18, 22[2018-19, 26[2019-20, 31[2020-21, 34[2021-22, 59[2022-23, 2023-24 and 2024-25]]]]]], the registered person shall have an option to not fill this Table.]
14R
Total ITC declared in Table 14A to 14Q above shall be auto populated here.
14S
Net ITC availed as declared in the Annual Return (GSTR9) shall be declared here. Table 7J

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drop down provided in FORM DRC-03. It may be noted that such liability shall be paid through electronic cash ledger 61[or electronic credit ledger].
24[****]
 
 
*******
Notes
1. Inserted vide Notification No. 49/2018 – Central Tax dated 13-09-2018
2. Substituted vide Notification No. 74/2018 – Central Tax dated 31-12-2018 before it was read as
“1[FORM GSTR-9C
See rule 80(3)
PART – A – Reconciliation Statement
Pt. I
Basic Details
1
Financial Year
 
2
GSTIN
 
3A
Legal Name
<  Auto >
3B
Trade Name
(if any)
< Auto >
4
   Are you liable to audit under any Act?                    << Please specify >>
 
 
(Amount in Rs. in all tables)
Pt. II
Reconciliation of turnover declared in audited Annual Financial Statement with turnover declared in Annual Return (GSTR9)
5
Reconciliation of Gross Turnover
A
Turnover (including exports) as per audited fina

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supply of goods by SEZ units to DTA Units
(-)
 
L
Turnover for the period under composition scheme 
(-)
 
M
Adjustments in turnover under section 15 and rules thereunder 
(+/-
)
 
N
Adjustments in turnover due to foreign exchange fluctuations
(+/-
)
 
O
Adjustments in turnover due to reasons not listed above 
(+/-
)
 
P
Annual turnover after adjustments as above
< Auto >
Q
Turnover as declared in Annual Return (GSTR9)
 
R
Un-Reconciled turnover (Q – P)
AT1
6
Reasons for Un – Reconciled difference in Annual Gross Turnover
A
B
C
Reason 1 
<< Text >>
Reason 2
<< Text >>
Reason 3
<< Text >>
7
Reconciliation of Taxable Turnover
A
Annual turnover after adjustments (from 5P above)
 < Auto  >    
B
Value of Exempted, Nil Rated, Non-GST supplies, No-Supply turnover
 
C
D
E
F
Zero rated supplies without payment of tax
 
Supplies on whi

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p;
 
18%
 
 
 
 
 
18% (RC)
 
 
 
      
 
28%
 
 
 
 
 
28% (RC)
 
 
 
      
 
I
J
K
L
M
N
3%
 
 
 
 
 
0.25%
 
 
 
 
 
0.10%
 
 
 
 
 
Interest
 
 
 
 
 
Late Fee
 
 
 
 
 
Penalty
  
 
 
 
 
O
Others 
 
 
 
 
 
P
 Total amount to be paid as per tables above
 < Auto >
< Auto >
 < Auto >
< Auto >
Q
  Total amount paid as declared in Annual Return (GSTR 9)
 
 
 
 
R
Un-reconciled payment of amount
PT 1
10
Reasons for un-reconciled payment of amount
A
B
Reas

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nbsp; 
 
Penalty
      
 
 
      
 
 
Others
(please specify)
      
 
 
      
 
Pt.
Reconciliation of Input Tax Credit (ITC) 
IV
 
12
Reconciliation of Net Input Tax Credit (ITC)
A
ITC availed as per audited Annual Financial Statement for the State/ UT (For multi-GSTIN units under same PAN this should be derived from books of accounts)
 
B
ITC booked in earlier Financial Years claimed in current
Financial Year
(+)
 
C
ITC booked in current Financial Year to be claimed in subsequent Financial Years
(-)
 
D
ITC availed as per audited financial statements or books of account 
 < Auto >
E
ITC claimed in Annual Return (GSTR9)
      
F
Un-reconciled ITC 
ITC 1 
13
Reasons for un-reconciled

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;
 
 
Entertainment charges
 
 
 
Stationery Expenses
(including postage etc.)
 
 
 
Repair and Maintenance
 
 
 
N
Other Miscellaneous expenses
 
 
 
O
P
Capital goods
 
 
      
Any other expense 1
 
 
 
Q
Any other expense 2
 
 
 
R
Total amount of eligible ITC availed
<> 
S
ITC claimed in Annual Return (GSTR9)
      
T
Un-reconciled ITC
ITC 2 
15
Reasons for un – reconciled difference in ITC
A
Reason 1 
<< Text >>  
B
C
Reason 2
<< Text >>  
Reason 3
<< Text >>  
16
Tax payable on un-reconciled difference in ITC (due to reasons specified in 13 and 15 above)
 
 
 
Description
 Amount Payable
Central Tax
 
State/UT Tax
 
Integrated Tax
 

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;
 
      
 
Penalty
      
 
 
      
 
 
Any other amount paid for supplies not included in Annual Return (GSTR 9)
 
 
 
 
 
 
 
Erroneous refund to be paid back
 
 
 
 
 
Outstanding demands to be settled
 
 
 
 
 
Other (Pl. specify)
      
 
 
      
 
 
Verification:
I hereby solemnly affirm and declare that the information given herein above is true and correct to the best of my knowledge and belief and nothing has been concealed there from.
**(Signature and stamp/Seal of the Auditor) 
Place: …………… 
Name of the signatory ………………… 
Membership No………………
Date: …………… 
F

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me PAN. This is common for persons / entities with presence over multiple States. Such persons / entities, will have to internally derive their GSTIN wise turnover and declare the same here. This shall include export turnover (if any). It may be noted that reference to audited Annual Financial Statement includes reference to books of accounts in case of persons / entities having presence over multiple States.
5B
Unbilled revenue which was recorded in the books of accounts on the basis of accrual system of accounting in the last financial year and was carried forward to the current financial year shall be declared here. In other words, when GST is payable during the financial year on such revenue (which was recognized earlier), the value of such revenue shall be declared here. 
(For example, if rupees Ten  Crores of unbilled revenue existed for the financial year 2016-17, and during the current financial year, GST was paid on rupees Four  Crores of such revenue, then v

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led revenue which was recorded in the books of accounts on the basis of accrual system of accounting during the current financial year but GST was not payable on such revenue in the same financial year shall be declared here. 
5I
Value of all advances for which GST has not been paid but the same has been recognized as revenue in the audited Annual Financial Statement shall be declared here. 
5J
Aggregate value of credit notes which have been accounted for in the audited Annual Financial Statement but were not admissible under Section 34 of the CGST Act shall be declared here. 
5K
Aggregate value of all goods supplied by SEZs to DTA units for which the DTA units have filed bill of entry shall be declared here. 
5L
There may be cases where registered persons might have opted out of the composition scheme during the current financial year. Their turnover as per the audited Annual Financial Statement would include turnover both as composition taxpayer as well as

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is turnover may be derived from Sr. No. 5N, 10 and 11 of Annual  Return (GSTR 9). 
6
Reasons for non-reconciliation between the annual turnover declared in the audited Annual Financial Statement and turnover as declared in the Annual Return (GSTR 9) shall be specified here. 
7
The table provides for reconciliation of taxable turnover from the audited annual turnover after adjustments with the taxable turnover declared in annual return (GSTR-9).
7A
Annual turnover as derived in Table 5P above would be auto-populated here. 
7B
Value of exempted, nil rated, non-GST and no-supply turnover shall be declared here. This shall be reported net of credit notes, debit notes and amendments if any. 
7C
Value of zero rated supplies (including supplies to SEZs) on which tax is not paid shall be declared here. This shall be reported net of credit notes, debit notes and amendments if any.
7D
Value of reverse charge supplies on which tax is to be paid by the recipien

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f tax paid as declared in Annual Return (GSTR 9). Under the head labelled ―RC‖, supplies where tax was paid on reverse charge basis by the recipient (i.e. the person for whom reconciliation statement has been prepared ) shall be declared.  
9P
The total amount to be paid as per liability declared in Table 9A to 9O is auto populated here.
9Q
The amount payable as declared in Table 9 of the Annual Return (GSTR9) shall be declared here. It should also contain any differential tax paid on Table 10 or 11 of the Annual Return (GSTR9). 
10
Reasons for non-reconciliation between payable / liability declared in Table 9P above and the amount payable in Table 9Q shall be specified here.  
11
Any amount which is payable due to reasons specified under Table 6, 8 and 10 above shall be declared here.
 
6.   Part IV consists of reconciliation of Input Tax Credit (ITC). The instructions to fill Part IV are as under:-
Table No.
Instructions

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current financial year but the same has not been credited to the ITC ledger for the said financial year shall be declared here.
12D
ITC availed as per audited Annual Financial Statement or books of accounts as derived from values declared in Table 12A, 12B and 12C above will be auto-populated here.
12E
Net ITC available for utilization as declared in Table 7J of Annual Return (GSTR9) shall be declared here.
13
Reasons for non-reconciliation of ITC as per audited Annual Financial  Statement or books of account (Table 12D) and the net ITC (Table12E)  availed in the Annual Return (GSTR9) shall be specified here.
14
This table is for reconciliation of ITC declared in the Annual Return (GSTR9) against the expenses booked in the audited Annual Financial Statement or books of account. The various sub-heads specified under this table are general expenses in the audited Annual Financial Statement or books of account on which ITC may or may not be available. Further, this is o

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to be paid for supplies not included in the Annual Return. Any refund which has been erroneously taken and shall be paid back to the Government shall also be declared in this table. Lastly, any other outstanding demands which is recommended to be settled by the auditor shall be declared in this Table. 
8.   Towards, the end of the reconciliation statement taxpayers shall be given an option to pay their taxes as recommended by the auditor. 
PART – B- CERTIFICATION
I. Certification in cases where the reconciliation statement (FORM GSTR-9C) is drawn up by the person who had conducted the audit:
 * I/we have examined the-
(a)   balance sheet as on ……… 
(b)   the *profit and loss account/income and expenditure account for the period beginning from …………..to ending on ……., and
(c)   the cash flow statement for the period beginning from ………..to ending on ………, – attached herewith, of M/s ……….

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r knowledge and belief, were necessary for the purpose of the audit were not provided/partially provided to us. 
(B)   In *my/our opinion, proper books of account *have/have not been kept by the registered person so far as appears from*my/ our examination of the books. 
(C)   I/we certify that the balance sheet, the *profit and loss/income and expenditure account and the cash flow Statement are *in agreement/not in agreement with the books of account maintained at the Principal place of business at ……………………and **
……………………additional place of business within the State. 
4.   The documents required to be furnished under section 35 (5) of the CGST Act and Reconciliation Statement required to be furnished under section 44(2) of the CGST Act is annexed herewith in Form No. GSTR-9C. 
5.   In *my/our opinion and to the best of *my/our information and according to explanations given to *me/us, the p

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audit of the books of accounts and the financial statements of M/s.
…………………………………… (Name and address of the assessee with GSTIN) was conducted by M/s. …………………………………………………… (full name and address of auditor along with status), bearing membership number in pursuance of the provisions of the …………………………….Act, and *I/we annex hereto a copy of their audit report dated ……………………………. along with a copy of each of :- 
(a)   balance sheet as on ……… 
(b)   the *profit and loss account/income and expenditure account for the period beginning from …………..to ending on ……., 
(c)   the cash flow statement for the period beginning from ………..to ending on ………, and
(d)   documents declared by the said Act to be part of, or annexed to, the *profit and loss account/income and expenditure account and balance shee

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…………………………………………………………………. 
(b)   ………………………………………………………………………………….. 
(c)   ………………………………………………………………………………….. 
………………………………………
**(Signature and stamp/Seal of the Auditor) 
Place: …………… 
Name of the signatory ………………… 
Membership No………………
Date: …………… 
Full address ………………………]”
3. Substituted vide Notification No. 56/2019 – Central Tax dated 14-11-2019 before it was read as “FY 2017-18”
4. Inserted vide Notification No. 56/2019 – Central Tax dated 14-11-2019
5. Inserted vide Notification No. 56/2019 – Central Tax dated 14-11-2019
6. Inserted vide Notification No. 56/2019 – Central Tax dated 14-11-2019
7. Inserted vide Notification No. 56/20

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, of M/s …………… (Name), ………………………………. (Address), …………………..(GSTIN).
2. Based on our audit I/we report that the said registered person-
*has maintained the books of accounts, records and documents as required by the IGST/CGST/<<>>GST Act, 2017 and the rules/notifications made/issued thereunder
*has not maintained the following accounts/records/documents as required by the IGST/CGST/<<>>GST Act, 2017 and the rules/notifications made/issued thereunder:
1.
2.
3.
3. (a) *I/we report the following observations/ comments / discrepancies / inconsistencies; if
any:
…………………………………….
…………………………………….
3. (b) *I/we further report that, –
(A) *I/we have obtained all the information and explanations which, to the best of *my/our knowledge and belief, were necessary for the purpose of the audit/ information and explanations which, to the best of *my/our knowledge and belief, were necessary f

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ions/qualifications, if any:
(a) ……………………………………………………………………………………
(b) ……………………………………………………………………………………
(c) ……………………………………………………………………………………
………………………………………
………………………………………
**(Signature and stamp/Seal of the Auditor)
Place: ……………
Name of the signatory …………………
Membership No………………
Date: ……………
Full address ………………………
II. Certification in cases where the reconciliation statement (FORM GSTR-9C) is drawn up by a person other than the person who had conducted the audit of the accounts:
*I/we report that the audit of the books of accounts and the financial statements of M/s. …………………………………… (Name and address of the assessee with GSTIN) was condu

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he following accounts/records/documents as required by the IGST/CGST/<<>>GST Act, 2017 and the rules/notifications made/issued thereunder:
1.
2.
3.
3. The documents required to be furnished under section 35 (5) of the CGST Act/SGST Act and Reconciliation Statement required to be furnished under section 44(2) of the CGST Act/SGST Act is annexed herewith in Form No.GSTR-9C.
4. In *my/our opinion and to the best of *my/our information and according to examination of books of account including other relevant documents and explanations given to *me/us, the particulars given in the said Form No.9C are true and correct subject to the following observations/qualifications, if any:
(a) …………………………………………………………………………………..
(b) …………………………………………………………………………………..
(c) …………………………………………………………………………………..
………

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ax dated 30-07-2021 w.e.f. 01-08-2021
20. Substituted vide NOTIFICATION No. 30/2021-Central Tax dated 30-07-2021 w.e.f. 01-08-2021 before it was read as
“Verification:
I hereby solemnly affirm and declare that the information given herein above is true and correct to the best of my knowledge and belief and nothing has been concealed there from.
**(Signature and stamp/Seal of the Auditor)
Place: ……………
Name of the signatory …………………
Membership No………………
Date: ……………
Full address ………………………
Verification of registered person:
I hereby solemnly affirm and declare that I am uploading the reconciliation statement in FORM GSTR-9C prepared and duly signed by the Auditor and nothing has been tampered or altered by me in the statement. I am also uploading other statements, as applicable, including financial statement, profit and loss account and balance sheet etc.”
21. Substituted vide NOTIFICATION No. 30/2021

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01-08-2021 before it was read as
“13[PART – B- CERTIFICATION
I. Certification in cases where the reconciliation statement (FORM GSTR-9C) is drawn up by the person who had conducted the audit:
* I/we have examined the-
(a) balance sheet as on ………
(b) the *profit and loss account/income and expenditure account for the period beginning from …………..to ending on ……., and
(c) the cash flow statement (if available) for the period beginning from ………..to ending on ………, -attached herewith, of M/s …………… (Name), ………………………………. (Address), …………………..(GSTIN).
2. Based on our audit I/we report that the said registered person-
*has maintained the books of accounts, records and documents as required by the IGST/CGST/<<>>GST Act, 2017 and the rules/notifications made/issued thereunder *has not maintained the following accounts/records/documents as required by the IGST/CGST/<<>>GST Act, 2017 and the rules/notifications mad

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…………….and ** ……………………additional place of business within the State.
4. The documents required to be furnished under section 35 (5) of the CGST Act / SGST Act and Reconciliation Statement required to be furnished under section 44(2) of the CGST Act / SGST Act is annexed herewith in Form No. GSTR-9C.
5. In *my/our opinion and to the best of *my/our information and according to explanations given to *me/us, the particulars given in the said Form No.GSTR-9C are true and fair subject to following observations/qualifications, if any:
(a) ……………………………………………………………………………………
(b) ……………………………………………………………………………………
(c) ……………………………………………………………………………………
………………………………………
………………………………………
**(Signature and stamp/Seal of the Au

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od beginning from …………..to ending on …….,
(c) the cash flow statement (if available) for the period beginning from ………..to ending on ………, and
(d) documents declared by the said Act to be part of, or annexed to, the *profit and loss account/income and expenditure account and balance sheet.
2. I/we report that the said registered person-
*has maintained the books of accounts, records and documents as required by the IGST/CGST/<<>>GST Act, 2017 and the rules/notifications made/issued thereunder *has not maintained the following accounts/records/documents as required by the IGST/CGST/<<>>GST Act, 2017 and the rules/notifications made/issued thereunder:
1.
2.
3.
3. The documents required to be furnished under section 35 (5) of the CGST Act / SGST Act and Reconciliation Statement required to be furnished under section 44(2) of the CGST Act / SGST Act is annexed herewith in Form No.GSTR-9C.
4. In *my/our opinion and to the best of *my/our information and accor

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ated 05-07-2022 before it was read as, “2019-20 and 2020-21”
27. Inserted vide NOTIFICATION NO. 38/2023- Central Tax dated 04-08-2023
28. Inserted vide NOTIFICATION NO. 38/2023- Central Tax dated 04-08-2023
29. Inserted vide NOTIFICATION NO. 38/2023- Central Tax dated 04-08-2023
30. Substituted vide NOTIFICATION NO. 38/2023- Central Tax dated 04-08-2023 before it was read as, “2020-21 and 2021-22”
31. Substituted vide NOTIFICATION NO. 38/2023- Central Tax dated 04-08-2023 before it was read as, “2020-21 and 2021-22”
32. Substituted vide Notification No. 12/2024 – Central Tax dated 10-07-2024 w.e.f. 10-07-2024 before it was read as, “2021-22 and 2022-23”
33. Substituted vide Notification No. 12/2024 – Central Tax dated 10-07-2024 w.e.f. 10-07-2024 before it was read as, “2020-21 and 2021-22”
34. Substituted vide Notification No. 12/2024 – Central Tax dated 10-07-2024 w.e.f. 10-07-2024 before it was read as, “2

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5 w.e.f. 22-09-2025
43. Inserted vide Notification No. 13/2025-Central Tax dated 17-09-2025 w.e.f. 22-09-2025
44. Substituted vide Notification No. 13/2025-Central Tax dated 17-09-2025 w.e.f. 22-09-2025 before it was read as, “2022-23 and 2023-24”
45. Substituted vide Notification No. 13/2025-Central Tax dated 17-09-2025 w.e.f. 22-09-2025 before it was read as, “2022-23 and 2023-24”
46. Substituted vide Notification No. 13/2025-Central Tax dated 17-09-2025 w.e.f. 22-09-2025 before it was read as, “2022-23 and 2023-24”
47. Substituted vide Notification No. 13/2025-Central Tax dated 17-09-2025 w.e.f. 22-09-2025 before it was read as, “2022-23 and 2023-24”
48. Substituted vide Notification No. 13/2025-Central Tax dated 17-09-2025 w.e.f. 22-09-2025 before it was read as, “2022-23 and 2023-24”
49. Substituted vide Notification No. 13/2025-Central Tax dated 17-09-2025 w.e.f. 2

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Tax Collection at Source u/s 52 of CGST Act Implemented on October 1, 2018.
Notifications
GST
GST – Collection of tax at source (TCS) – Section 52 of the CGST Act comes into force w.e.f 01.10

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TDS Deduction u/s 51 of CGST Act Effective from October 1, 2018 for Payments to Suppliers.
Notifications
GST
TDS liability u/s 51 of CGST Act, 2017 come into force w.e.f. 01-10-2018 – Persons

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