CGST Rule 36: Input tax credit valid if key info is on invoice, despite other document errors.
Act-Rules
GST
Documentary requirements and conditions for claiming input tax credit – Rule 36 of
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Amendment to Rule 55: New Provisions for Transporting Goods in Batches Without an Invoice Under GST Rules 2017.
Act-Rules
GST
Transportation of goods without issue of invoice – Rule 55 of the
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Central Goods & Services Tax Rule 89(4) Update: New Definition of “Adjusted Total Turnover” Affects ITC Refunds for Zero-Rated Supplies.
Act-Rules
GST
Refund of input tax credit (ITC) in case
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Amended Rule 96 of CGST Rules 2017: Exporters must meet new conditions for IGST refund eligibility on exports.
Act-Rules
GST
Refund of IGST paid on goods or services exported out of India – Rule 96 of the CGST Rules, 2017 – Rule 96(10) amended retrospectively w.e..f 23-10-2017 – The person claiming refund should not availed the benefit under certain notifications – or – no benefit on inward supplies have been availed under certain notifications.
TMI Updates – Highlights, quick notes
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Transporters Must Carry Bill of Entry Copy and File Serial Number in EWB-01 per Rule 138A CGST Rules.
Act-Rules
GST
Copy of Bill of Entry to be carried by the transporter in case of Import an
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Can we claim Input GST after claiming Drawback & ROSL
Query (Issue) Started By: – Ab rus Dated:- 5-9-2018 Last Reply Date:- 23-1-2019 Goods and Services Tax – GST
Got 5 Replies
GST
Dear sir,
We are exporting goods to USA without payment of IGST after GST implementation.
Our forwarder claimed Drawback & ROSL in shipping bills, when shipment going. Drawback & ROSL amount automatically credited to our bank account.
The point is we claimed GST refund claim and its also received in our bank.
Please clarify whether we can claim GST if we already claimed Drawback & ROSL. Is there any section?
Please clarify.
Thanks
Reply By KASTURI SETHI:
The Reply:
There may be mistake in the functioning of Common Portal System. You got dra
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ROSL should not be claimed which are mentioned in the relevant notifications.
If you fulfill both the aforesaid conditions, then GST is Refundable.
(Refer Cirular No.:37/11/2018 – GST Dated 15th March,2018) and (349/21/2016-GST( 04th September,2018.
Reply By DR.MARIAPPAN GOVINDARAJAN:
The Reply:
Sri Yash gives a clear picture on the query.
Reply By KASTURI SETHI:
The Reply:
Kudos to Sh.Yash Jain, Sir for such crystal clear and fool proof reply. Nothing is left untouched. Such precise reply can be termed as , "Gaagar mein sagar."
Reply By Saradha Hariharan:
The Reply:
Dear Mr. Yash Jain
Can you please help me understand which para you are referred to in this regard in Circular No. 59/33/2018-GST F. No. 349/21/2016-GST date
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GST Registration Cancellation Proceedings Terminated with New Form REG-20 Update for Tax Compliance Procedures.
Forms
GST
FORM GST REG-20 – Order for dropping the proceedings for cancellation
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New Version of Form GST ITC-4 for Reporting Goods Sent to Job Workers Now Available for Compliance.
Forms
GST
FORM GST ITC-4 – Details of goods/capital goods sent to job worker and received b
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Annual GSTR-9 Return: Key for GST Compliance, Summarizing Tax Transactions and Ensuring Accurate Reporting for Registered Taxpayers.
Forms
GST
FORM GSTR-9 – Annual Return – Goods and Services
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Annual GSTR-9A Form: Simplified Tax Filing for GST Composition Taxpayers, Summarizing Transactions and Compliance.
Forms
GST
FORM GSTR-9A – Annual Return (For Composition Taxpayer) – Goods an
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Amendment in FORM GST EWB-01: Updated Options for Selecting Transportation Reason in E-Way Bill Item 7.
Forms
GST
FORM GST EWB-01 – E-Way Bill – Reason for Transportation shall be chosen from
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GST on Donation
Query (Issue) Started By: – Ethirajan Parthasarathy Dated:- 5-9-2018 Last Reply Date:- 5-9-2018 Goods and Services Tax – GST
Got 4 Replies
GST
Donations received by NGOs without any condition attached, should not attract GST since NGO does not render any “supply” to the Donar.
But there is a view that the above interpretation, is negated by the decision of AAR Maharashtra in the case of Shrimad Raj Chandra Adhyatmik Satsang Sadhana Kendra.
Experts view on the above is solicited.
Reply By KASTURI SETHI:
The Reply:
Applicability of GST on donation depends upon so many factors. So it is case to case. Read the following :
GST on Charitable and Religious Trusts – C.B.E. & C. Flyer No. 39, dated 1-1-2018
Reply
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Input Reversal
Query (Issue) Started By: – Ethirajan Parthasarathy Dated:- 5-9-2018 Last Reply Date:- 5-9-2018 Goods and Services Tax – GST
Got 1 Reply
GST
* A developer engages various contractors for putting up the Building.
A percentage of contractor's Bill is kept as “retention money” which will be paid after long duration. Similarly some portion of Bill is not paid and kept as “hold” money for defective work which will be paid after defect is set right
Both the above could be outstanding for more than 180 days.
Does it mean the developer has to reverse the Input Credit already availed on above two components.
Reply By Yash Jain:
The Reply:
Sir,
Please pay the GST portion of retention to contractor and take an acknowl
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Valuation for Delivery Challan for Goods returned after doing Jobwork
Query (Issue) Started By: – Ashish Gupta Dated:- 5-9-2018 Last Reply Date:- 7-9-2018 Goods and Services Tax – GST
Got 2 Replies
GST
Material is received from a Principal Manufacturer by delivery challan in kg where the rate is say ₹ 50/kg. Jobwork is done on the same and is returned by delivery challan by the jobworker to the Principal Manufacturer. The value addition is say 7.5/kg by the jobworker. What should be the rate mentioned on the delivery challan Rs. 50 or ₹ 57.5 ?
The ewaybill requires value of goods. Raw material rate and processed goods rate are going to be different. Kindly enlighten on this issue with reasoning.
Reply By DR.MARIA
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GST on Higher Education
Query (Issue) Started By: – Biswajit Ghosh Dated:- 5-9-2018 Last Reply Date:- 6-9-2018 Goods and Services Tax – GST
Got 3 Replies
GST
1) we are conducting 2 years Post Graduate Diploma Management Course under different specialisation like Marketing, HR, Finance, etc. This is under affiliation with All India Council of Technical Education.
2) Unit of TRUST. The Trust is exempted under Income Tax Act.
3) We are providing facilities to the student like Accomm
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GST – CONCEPT & STATUS (Updated as on 01st September 2018)
GST
Dated:- 5-9-2018
GOODS AND SERVICE TAX (GST)
CONCEPT & STATUS
CENTRAL BOARD OF INDIRECT TAXES AND CUSTOMS (CBIC)
DEPARTMENT OF REVENUE
MINISTRY OF FINANCE
GOVERNMENT OF INDIA
AS ON 1st SEPTEMBER, 2018
The uniform system of taxation, which, with a few exceptions of no great consequence, takes place in all the different parts of the United Kingdom of Great Britain, leaves the interior commerce of the country, the inland and coasting trade, almost entirely free. The inland trade is almost perfectly free, and the greater part of goods may be carried from one end of the kingdom to the other, without requiring any permit or let-pass, without being subject to question, visit, or examination from the revenue officers. ……This freedom of interior commerce, the effect of uniformity of the system of taxation, is perhaps one of the principal causes of the prosperity of Great Britain; every great country being
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2. CONSTITUTIONAL SCHEME OF INDIRECT TAXATION IN INDIA BEFORE GST :
2.1 Article 265 of the Constitution of India provides that no tax shall be levied or collected except by authority of law. As per Article 246 of the Constitution, Parliament has exclusive powers to make laws in respect of matters given in Union List (List I of the Seventh Schedule) and State Government has the exclusive jurisdiction to legislate on the matters containing in State List (List II of the Seventh Schedule). In respect of the matters contained in Concurrent List (List III of the Seventh Schedule), both the Central Government and State Governments have concurrent powers to legislate.
2.2 Before advent of GST, the most important sources of indirect tax revenue for the Union were customs duty (entry 83 of Union List), central excise duty (entry 84 of Union List), and service tax (entry 97 of Union List). Although entry 92C was inserted in the Union List of the Seve
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entry 53 of the State List). CST was also an important source of revenue though the same was levied by the Union.
3. HISTORICAL EVOLUTION OF INDIRECT TAXATION IN POSTINDEPENDENCE INDIA TILL GST:
3.1 In post-Independence period, central excise duty was levied on a few commodities which were in the nature of raw materials and intermediate inputs, and consumer goods were outside the net by and large. The first set of reform was suggested by the Taxation Enquiry Commission (1953-54) under the chairmanship of Dr. John Matthai. The Commission recommended that sales tax should be used specifically by the States as a source of revenue with Union governments' intervention allowed generally only in case of inter-State sales. It also recommended levy of a tax on inter-State sales subject to a ceiling of 1%, which the States would administer and also retain the revenue.
3.2 The power to levy tax on sale and purchase of goods in the cour
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ods only with one-to-one correlation between input and manufactured goods for eligibility to take input tax credit. The comprehensive coverage of MODVAT was achieved by 1996-97.
3.4 The next wave of reform in indirect tax sphere came with the New Economic Policy of 1991. The Tax Reforms Committee under the chairmanship of Prof. Raja J Chelliah was appointed in 1991. This Committee recommended broadening of the tax base by taxing services and pruning exemptions, consolidation and lowering of rates, extension of MODVAT on all inputs including capital goods. It suggested that reform of tax structure must have to be accompanied by a reform of tax administration, if complete benefits were to be derived from the tax reforms. Many of the recommendations of the Chelliah Committee were implemented. In 1999-2000, tax rates were merged in three rates, with additional rates on a few luxury goods. In 2000-01, three rates were merged into one rate called Central Value Added Tax (C
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y, sales tax was levied in States since independence. Sales tax was plagued by some serious flaws. It was levied by States in an uncoordinated manner the consequences of which were different rates of sales tax on different commodities in different States. Rates of sales tax were more than ten in some States and these varied for the same commodity in different States. Inter-state sales were subjected to levy of Central Sales Tax. As this tax was appropriated by the exporting State credit was not allowed by the dealer in the importing State. This resulted into exportation of tax from richer to poorer states and also cascading of taxes. Interestingly, States had power of taxation over services from the very beginning. States levied tax on advertisements, luxuries, entertainments, amusements, betting and gambling.
3.7 A report, titled “Reform of Domestic Trade Taxes in India”, on reforming indirect taxes, especially State sales tax, by National Institute of Public Financ
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Finance Minister in 1995. A standing Committee of State Finance Ministers was constituted, as a result of meeting of the Union Finance Ministers and Chief Ministers in November, 1999, to deliberate on the design of VAT which was later made the Empowered Committee of State Finance Ministers (EC). Haryana was the first State to implement VAT, in 2003. In 2005, VAT was implemented in most of the states. Uttar Pradesh was the last State to implement VAT, from 1st January, 2008.
4. INTERNATIONAL PERSPECTIVES ON GST / VAT:
4.1 VAT and GST are used inter-changeably as the latter denotes comprehensiveness of VAT by coverage of goods and services. France was the first country to implement VAT, in 1954. Presently, more than 160 countries have implemented GST / VAT in some form or the other. The most popular form of VAT is where taxes paid on inputs are allowed to be adjusted in the liability at the output. The VAT or GST regime in practice varies from one country to an
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-ordination between the national and sub-national entities (Brazil, Russia). While a centralized structure reduces fiscal autonomy for the States, a decentralized structure enhances compliance burden for the taxpayers. Canada is a federal country with unique model of taxation in which certain provinces have joined federal GST and others have not. Provinces which administer their taxes separately are called 'non- participating provinces', whereas provinces which have teamed up with the Federal Government for tax administration are called 'participating provinces'.
4.3 The rate of GST varies across countries. While Malaysia has a lower rate of 6% (Malaysia though scrapped GST in 2018 due to popular uproar against it), Hungary has one of the highest rate of 27%. Australia levies GST at the rate of 10% whereas Canada has multiple rate slabs. The average rate of VAT across the EU is around 19.5%.
5. NEED FOR GST IN INDIA:
5.1 The introduct
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es, such as, Luxury Tax, Entertainment Tax, etc. which have still not been subsumed in the VAT. Further, there has also not been any integration of VAT on goods with tax on services at the State level with removal of cascading effect of service tax.
5.3 CST was another source of distortion in terms of its cascading nature. It was also against one of the basic principles of consumption taxes that tax should accrue to the jurisdiction where consumption takes place. Despite remarkable harmonization in VAT regimes under the auspices of the EC, the national market was fragmented with too many obstacles in free movement of goods necessitated by procedural requirement under VAT and CST.
5.4 In the constitutional scheme, taxation powers on goods was with Central Government but it was limited upto the stage of manufacture and production while States have powers to tax sale and purchase of goods. Centre had powers to tax services and States also had po
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The Kelkar Task Force on Fiscal Responsibility and Budget Management (FRBM) recommended in 2005 introduction of a comprehensive tax on all goods and service replacing Central level VAT and State level VATs. It recommended replacing all indirect taxes except the customs duty with value added tax on all goods and services with complete set off in all stages of making of a product.
6.2 An announcement was made by the then Union Finance Minister in Budget (2007-08) to the effect that GST would be introduced with effect from April 1, 2010 and that the EC, on his request, would work with the Central Government to prepare a road map for introduction of GST in India. After this announcement, the EC decided to set up a Joint Working Group in May 10, 2007, with the then Adviser to the Union Finance Minister and Member-Secretary of the Empowered Committee as its Co-conveners and four Joint Secretaries of the Department of Revenue of Union Finance Ministry and all Finance
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(April 30, 2008). These views of EC were then sent to the Government of India, and the comments of Government of India were received on December 12, 2008. These comments were duly considered by the EC (December 16, 2008), and it was decided that a Committee of Principal Secretaries/Secretaries of Finance/Taxation and Commissioners of Trade Taxes of the States would be set up to consider these comments, and submit their views. These views were submitted and were accepted in principle by the EC (January 21, 2009). Based on discussions within the EC and between the EC and the Central Government, the EC released its First Discussion Paper (FDP) on GST in November, 2009. This spelled out the features of the proposed GST and has formed the basis for discussion between the Centre and the States.
7. CHALLENGES IN DESIGNING GST:
7.1 In the discussion that preceded amendment in the Constitution for GST, there were a number of thorny issues that required resolution and
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that they need to collect at least some tax from inter-State sales in order to recover the cost of infrastructure and public services provided by the State Governments to the industries producing the goods which are consumed in other states. This line of reasoning is based on the assumption that in the absence of a tax on inter-State sales, the location of export industries within their jurisdiction would not contribute to the tax revenues of the exporting state. This view was missing the fact that any value addition in a jurisdiction necessarily means extra income in the hands of the residents of that jurisdiction. Spending of this income on consumer goods expands the sales tax base of the producing states and thereby contributes to their revenues. In fact, to the extent that consumer expenditures are dependent on the level of income of the residents of a State, it is the producing States that stand to gain the most in additional sales tax revenues (even under the destination basis of
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the sake of analytical clarity and precision it is appropriate to think of the RNR as a single rate. It is a given single rate that gets converted into a whole rate structure, depending on policy choices about exemptions, what commodities to charge at a lower rate and what to charge at a very high rate.
7.3.2 The Committee recommended RNR of 15-15.5% (to be levied by the Centre and States combined). The lower rates (to be applied to certain goods consumed by the poor) should be 12%. Further, the sin or demerit rates (to be applied on luxury cars, aerated beverages, pan masala, and tobacco) should be 40%.
7.4 Dispute Settlement: A harmonized system of taxation necessarily required that all stakeholders stick to the decisions taken by the supreme body, which was later constituted as the Goods and Services Tax Council (the Council). However, the possibility of departure from the recommendations of such body cannot be completely ruled out. Any d
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ates. As States were uncertain about impact of GST on their finances and moreover loss of autonomy in collection of tax revenue, States unanimously argued for exclusion of these products from the ambit of GST. In the 115th Amendment Bill alcoholic liquor for human consumption and five petroleum products namely crude petroleum, high speed diesel, motor spirit or petrol, aviation turbine fuel and natural gas were kept out of GST. But in the 122nd Amendment Bill, only alcoholic liquor for human consumption was kept outside GST and above mentioned five petroleum products were proposed to be brought under GST from a date to be recommended by the Council. The Central Government has also retained its power to tax tobacco and tobacco products, though these are also under GST. Thus, to ensure smooth transition and provide fiscal buffer to States, it was agreed to keep alcohol completely out of the ambit of GST.
8. CONSTITUTIONAL AMENDMENT:
8.1 As explained above, unif
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p;
8.2 The Constitution (115th Amendment) Bill, 2011, in relation to the introduction of GST, was introduced in the Lok Sabha on 11th March, 2011. The Bill was referred to the Standing Committee on Finance on 29th March, 2011. The Standing Committee submitted its report on the Bill in August, 2013. However, the Bill, which was pending in the Lok Sabha, lapsed with the dissolution of the 15th Lok Sabha.
8.3 The Constitution (122nd Amendment) Bill, 2014 was introduced in the 16th Lok Sabha on 19th December, 2014. The Constitution Amendment Bill was passed by the Lok Sabha in May, 2015. The Bill was referred to the Select Committee of Rajya Sabha on 12th May, 2015. The Select Committee submitted its Report on the Bill on 22nd July, 2015. The Bill with certain amendments was finally passed in the Rajya Sabha and thereafter by Lok Sabha in August, 2016. Further the bill was ratified by required number of States and received assent of the President on 8th Sept
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Parliament by law on the recommendations of the Goods and Services Tax Council. It also provides that Parliament may, by law, formulate the principles for determining the place of supply, and when a supply of goods, or of services, or both takes place in the course of interState trade or commerce.
* Article 270 has been amended to provide for distribution of goods and services tax collected by the Union between the Union and the States.
* Article 271 has been amended which restricts power of the Parliament to levy surcharge under GST. In effect, surcharge cannot be imposed on goods and services which are subject to tax under Article 246A.
* Article 279A has been inserted to provide for the constitution and mandate of GST Council.
* Article 366 has been amended to exclude alcoholic liquor for human consumption from the ambit of GST, and services have been defined.
* Article 368 has been amended to provide for a special procedure which requires the ratification of the Bill by t
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nbsp; As provided for in Article 279A of the Constitution, the Goods and Services Tax Council (the Council) was notified with effect from 12th September, 2016. The Council is comprised of the Union Finance Minister (who will be the Chairman of the Council), the Minister of State (Revenue) and the State Finance/Taxation Ministers as members. It shall make recommendations to the Union and the States on the following issues:
* the taxes, cesses and surcharges levied by the Centre, the States and the local bodies which may be subsumed under GST;
* the goods and services that may be subjected to or exempted from the GST;
* model GST laws, principles of levy, apportionment of IGST and the principles that govern the place of supply;
* the threshold limit of turnover below which the goods and services may be exempted from GST;
* the rates including floor rates with bands of GST;
* any special rate or rates for a specified period to raise additional resources during any natural
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by a majority of not less than three-fourths of the weighted votes of the members present and voting, in accordance with the following principles, namely: –
(a) the vote of the Central Government shall have a weightage of one-third of the total votes cast, and
(b) the votes of all the State Governments taken together shall have a weightage of two-thirds of the total votes cast, in that meeting.
9.4 The Council has met for 29 times and no occasion has arisen so far that required voting to decide any matter. The following major recommendations have been made by the Council:
(i) The threshold exemption limit would be Rs. 20 lakh. For special category States (except J&K) enumerated in article 279A of the Constitution, threshold exemption limit has been fixed at Rs. 10 lakh.
(ii) Composition threshold shall be Rs. 1 crore. As decided in the 23rd meeting of the Council, this limit shall be raised to Rs. 1.5 crore after necessa
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d over 10% with the Central tax administration. Further all administrative control over taxpayers having turnover above Rs. 1.5 crore shall be divided equally in the ratio of 50% each for the Central and State tax administration.
(vi) Powers under the IGST Act shall also be cross-empowered on the same basis as under CGST and SGST Acts with few exceptions.
(vii) Power to collect GST in territorial waters shall be delegated by Central Government to the States.
(viii) Formula and mechanism for GST Compensation Cess has been finalized.
(ix) Eighteen rules on composition, registration, input tax credit, invoice, determination of value of supply, accounts and records, returns, payment, refund, assessment and audit, advance ruling, appeals and revision, transitional provisions, anti-profiteering, E-way Bill, inspection, search and seizure, demands and recovery and offences and penalties have been recommended.
(x) The follo
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taxpayers are required to file return FORM GSTR-3B & pay tax on monthly basis.
(xvii) Taxpayers with turnover upto Rs. 1.5 Cr are required to file information in FORM GSTR-1 on a quarterly basis. Other taxpayers would have to file FORM GSTR-1 on a monthly basis.
(xviii) Late fee for delayed filing of return in FORM GSTR-3B for the months of July, 2017 to September, 2017 has been waived. The amount of late fee already paid but subsequently waived off shall be re-credited to the Electronic Cash Ledger of registered person under “Tax” head instead of “Fee” head.
(xix) From October 2017 onwards, the amount of late fee for late filing of GSTR-3B payable by a registered person is as follows:
* whose tax liability for that month was 'NIL' will be Rs. 20/- per day instead of Rs. 200/- per day;
* whose tax liability for that month was not 'NIL' will be Rs. 50/- per day instead of Rs. 200/- per day.
(xxi) Facility has been introduced
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ervices Tax (Amendment) Act, 2018, the Union Territory Goods and Services Tax (Amendment) Act, 2018 and the Goods and Services Tax (Compensation to States) Amendment Act, 2018, respectively. The major amendments brought about by these Acts are as below:
(i) Upper limit of turnover for opting for composition scheme to be raised from Rs. 1 crore to Rs. 1.5 crore. Present limit of turnover can now be raised on the recommendations of the Council.
(ii) Composition dealers to be allowed to supply services (other than restaurant services), for up to a value not exceeding 10% of turnover in the preceding financial year, or Rs. 5 lakhs, whichever is higher.
(iii) Levy of GST on reverse charge mechanism on receipt of supplies from unregistered suppliers, to be applicable to only specified goods in case of certain notified classes of registered persons, on the recommendations of the GST Council.
(iv) The threshold exemption limit for regis
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oods to any person before clearance for home consumption; and
(c) Supply of goods in case of high sea sales.
(ix) Scope of input tax credit is being widened, and it would now be made available in respect of the following:
(a) Most of the activities or transactions specified in Schedule III;
(b) Motor vehicles for transportation of persons having seating capacity of more than thirteen (including driver), vessels and aircraft
(c) Services of general insurance, repair and maintenance in respect of motor vehicles, vessels and aircraft on which credit is available; and
(d) Goods or services which are obligatory for an employer to provide to its employees, under any law for the time being in force
(x) Registered persons may issue consolidated credit/debit notes in respect of multiple invoices issued in a Financial Year.
(xi) Amount of pre-deposit payable for filing of appeal before the Appe
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pportioned at the rate of fifty per cent. to the Central Government and fifty per cent. to the State Governments or the Union territories, as the case may be, on ad hoc basis and this amount shall be adjusted against the amount finally apportioned.
(xviii) Fifty per cent of such amount, as may be recommended by the Council, which remains unutilised in the Compensation Fund, at any point of time in any financial year during the transition period shall be transferred to the Consolidated Fund of India as the share of Centre, and the balance fifty per cent. shall be distributed amongst the States in the ratio of their base year revenue.
(xix) In case of shortfall in the amount collected in the Fund against the requirement of compensation to be released for any two months' period, fifty per cent. of the same, but not exceeding the total amount transferred to the Centre and the States as recommended by the Council, shall be recovered from the Centre and the balance
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viewed and locked by the buyer for availing input tax credit. This process would ensure that very large part of the return is automatically filled based on the invoices uploaded by the buyer and the supplier. Simply put, the process would be “UPLOAD – LOCK – PAY” for most tax payers.
(iv) Taxpayers would have facility to create his profile based on nature of supplies made and received. The fields of information which a taxpayer would be shown and would be required to fill in the return would depend on his profile.
(v) NIL return filers (no purchase and no sale) shall be given facility to file return by sending SMS.
(vi) There shall be quarterly filing of return for the small taxpayers having turnover below Rs. 5 Cr as an optional facility. Quarterly return shall be similar to main return with monthly payment facility but for two kinds of registered persons – small traders making only B2C supply or making B2B + B2C supply. For such taxpayers, simp
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T to be levied by the Centre would be called Central GST (Central tax / CGST) and that to be levied by the States would be called State GST (State Tax / SGST). State GST (State Tax / SGST) would be called UTGST (Union territory tax) in Union Territories without legislature. CGST & SGST / UTGST shall be levied on all taxable intra-State supplies.
10.2 The IGST Model: Inter-State supply of goods or services shall be subjected to integrated GST (Integrated tax / IGST). The IGST model is a unique contribution of India in the field of VAT. The IGST Model envisages that Centre would levy IGST (Integrated Goods and Service Tax) which would be CGST plus SGST on all inter-State supply of goods or services or both. The inter-State supplier will pay IGST on value addition after adjusting available credit of IGST, CGST, and SGST on his purchases. The Exporting State will transfer to the Centre the credit of SGST used in payment of IGST. The person based in the destination State
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ave been adopted. Besides, some goods and services are exempt also. Rate for precious metals is an exception to 'four-tax slabrule' and the same has been fixed at 3%. In addition, unworked diamonds, precious stones, etc. attracts a rate of 0.25%. A cess over the peak rate of 28% on certain specified luxury and demerit goods, like tobacco and tobacco products, pan masala, aerated water, motor vehicles is imposed to compensate States for any revenue loss on account of implementation of GST. The list of goods and services in case of which reverse charge would be applicable has also been notified.
10.4 Compensation to States: The Goods and Services Tax (Compensation to States) Act, 2017 provides for compensation to the States for the loss of revenue arising on account of implementation of the goods and services tax. Compensation will be provided to a State for a period of five years from the date on which the State brings its SGST Act into force. For the purpose of calculating
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odel”. It envisages one e-way bill for movement of the goods throughout the country, thereby ensuring a hassle free movement for transporters throughout the country. The e-way bill system has been introduced nation-wide for all inter-State movement of goods with effect from 1st April, 2018. As regards intra-State supplies, option was given to States to choose any date on or before 3rd June, 2018. All States have notified e-way bill rules for intra-State supplies last being NCT of Delhi where it was introduced w.e.f. 16th June, 2018.
10.6 Anti-Profiteering Mechanism: Implementation of GST in many countries was coupled with increase in inflation and the prices of the commodities. This happened in spite of the availability of the tax credit. This was happening because the supplier was not passing on the benefit to the consumer and thereby indulging in illegal profiteering. Any reduction in rate of tax or the benefit of increased input tax credit should have been passed
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s. It includes all sorts of activities like manufacture, sale, barter, exchange, transfer etc. It also includes supplies made without consideration when such supplies are made in certain specified situations.
10.8 Threshold Exemption: A common threshold exemption would apply to both CGST and SGST. Taxpayers with an annual turnover of Rs. 20 lakh (Rs. 10 lakh for special category States (except J&K) as specified in article 279A of the Constitution) would be exempt from GST. The GST Act has been amended to raise threshold exemption limit in case of six more special category States. The amendment shall be effective from a date to be notified in the future. The benefit of threshold exemption is not available in inter-State supplies of goods.
10.9 Composition Scheme: An optional composition scheme (i.e. to pay tax at a flat rate on turnover without credits) is available to small taxpayers (including to manufacturers other than specified category of manu
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CGST & IGST in that order;
(b) ITC of SGST allowed for payment of SGST & IGST in that order;
(c) ITC of UTGST allowed for payment of UTGST & IGST in that order;
(d) ITC of IGST allowed for payment of IGST, CGST & SGST/UTGST in that order.
ITC of CGST cannot be used for payment of SGST/UTGST and vice versa.
10.12 Settlement of Government Accounts: Accounts would be settled periodically between the Centre and the State to ensure that the credit of SGST used for payment of IGST is transferred by the originating State to the Centre. Similarly, the IGST used for payment of SGST would be transferred by Centre to the destination State. Further the SGST portion of IGST collected on B2C supplies would also be transferred by Centre to the destination State. The transfer of funds would be carried out on the basis of information contained in the returns filed by the taxpayers.
10.13 Modes of Payment: Various modes of payment of tax
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able supplies, out of payments to suppliers supplying goods or services through their portals. The provision for TCS has not been operationalized yet.
10.17 Self-assessment: Self-assessment of the taxes payable by the registered person shall be the norm. Audit of registered persons shall be conducted on selective basis. Limitation period for raising demand is three (3) years from the due date of filing of annual return or from the date of erroneous refund for raising demand for short-payment or non-payment of tax or erroneous refund and its adjudication in normal cases. Limitation period for raising demand is five (5) years from the due date of filing of annual return or from the date of erroneous refund for raising demand for short-payment or non-payment of tax or erroneous refund and its adjudication in case of fraud, suppression or willful mis-statement.
10.18 Recovery of Arrears: Arrears of tax to be recovered using various modes including detaining and sa
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of Special Importance), Additional Duties of Excise (Textiles and Textile Products), Additional Duties of Customs (commonly known as CVD), Special Additional Duty of Customs (SAD), Service Tax and cesses and surcharges insofar as they related to supply of goods or services were subsumed. As far as taxes levied and collected by States are concerned, State VAT, Central Sales Tax, Purchase Tax, Luxury Tax, Entry Tax, Entertainment Tax (except those levied by the local bodies), Taxes on advertisements, Taxes on lotteries, betting and gambling, cesses and surcharges insofar as they related to supply of goods or services were subsumed.
11. GST LEGISLATIONS:
11.1. Four Laws namely CGST Act, UTGST Act, IGST Act and GST (Compensation to States) Act were passed by the Parliament and since been notified on 12th April, 2017. All the other States (except J&K) and Union territories with legislature have passed their respective SGST Acts. The economic integration of India
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; On 22nd June, 2017, the first notification was issued for GST and notified certain sections under CGST. Since then, 113 notifications under CGST Act have been issued notifying sections, notifying rules, amendment to rules and for waiver of penalty, etc. 13, 28 and 1 notifications have also been issued under IGST Act, UTGST Act and GST (Compensation to States) Act respectively. Further 69, 73, 69 and 9 rate related notifications each have been issued under the CGST Act, IGST Act, UTGST Act and GST (Compensation to States) Act respectively. Similar notifications have been issued by all the States under the respective SGST Act. Apart from the notifications, 60 circulars and 15 orders have also been issued by CBIC on various subjects like proper officers, ease of exports, and extension of last dates for filling up various forms, etc.
12. ROLE OF CBIC:
12.1 CBIC is playing an active role in the drafting of GST law and procedures, particularly the CGST and IGST law, wh
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ct is aimed at imparting training on GST law and procedures to more than 60,000 officers of CBIC and Commercial Tax officers of State Governments.
12.3 CBIC would be responsible for administration of the CGST and IGST law. In addition, excise duty regime would continue to be administered by the CBIC for levy and collection of central excise duty on five specified petroleum products as well as on tobacco products. CBIC would also continue to handle the work relating to levy and collection of customs duties.
12.4 Director General of Anti-profiteering, CBIC has been mandated to conduct detailed enquiry on anti-profiteering cases and should give his recommendation for consideration of the National Anti-profiteering Authority.
12.5 CBIC has been instrumental in handholding the implementation of GST. It had set up the Feedback and Action Room which monitored the GST implementation challenges faced by the taxpayer and act as an active interface between the taxpayer and the Government
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utions, HDFC and HDFC Bank hold 20%, ICICI Bank holds 10%, NSE Strategic Investment holds 10% and LIC Housing Finance holds 10%. The GST Council in its 27th meeting held on 04th May, 2018 has approved the change in shareholding pattern of GSTN. Considering the nature of 'state' function' performed by GSTN, the GST Council felt that GSTN be converted into a fully owned Government company. Accordingly, the Council approved acquisition of entire 51 per cent of equity held by non-Governmental institutions in GSTN amounting to Rs. 5.1 crore, equally by the Centre and the State Governments.
13.3 The design of GST systems is based on role based access. The taxpayer can access his own data through identified applications like registration, return, view ledger etc. The tax official having jurisdiction, as per GST law, can access the data. Data can be accessed by audit authorities as per law. No other entity can have any access to data available with GSTN.
14. GST: A GA
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ingle registration is needed under GST in one State. An additional benefit under Composition scheme has also been provided for businesses with aggregate annual turnover upto Rs. 1 crore. With the creation of a seamless national market across the country, small enterprises will have an opportunity to expand their national footprint with minimal investment.
14.4 Benefits to agriculture and Industry: GST will give more relief to industry, trade and agriculture through a more comprehensive and wider coverage of input tax set-off and service tax set-off, subsuming of several Central and State taxes in the GST and phasing out of CST. The transparent and complete chain of set-offs which will result in widening of tax base and better tax compliance may also lead to lowering of tax burden on an average dealer in industry, trade and agriculture.
14.5 Benefits for common consumers: With the introduction of GST, the cascading effects of CENVAT, State VAT and service tax will be
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resources. More efficient neutralization of taxes especially for exports thereby making our products more competitive in the international market and give boost to Indian Exports. It will also improve the overall investment climate in the country which will naturally benefit the development in the states. Uniform CGST & SGST and IGST rates will reduce the incentive for evasion by eliminating rate arbitrage between neighboring States and that between intra and inter-State supplies. Average tax burden on companies is likely to come down which is expected to reduce prices and lower prices mean more consumption, which in turn means more production thereby helping in the growth of the industries. This will create India as a “Manufacturing hub”.
14.7 Ease of Doing Business: Simpler tax regime with fewer exemptions along with reduction in multiplicity of taxes that are at present governing our indirect tax system will lead to simplification and uniformity. Reduction in compliance costs as m
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migrated) taxpayers
66,20,166
2.
Total No. of new applications received for registration
60,46,483
3.
No. of applications approved
52,04,424
4.
No. of applications rejected
7,99,407
5.
Total No. of taxpayers; new + migrated (1 + 3)
1,18,24,590
6.
No. of taxpayers who have opted for composition scheme
17,65,628
7.
No. of 3 (B) returns filed for July, 2017
64,87,496
8.
No. of 3(B) returns filed for August, 2017
70,17,352
9.
No. of 3(B) returns filed for September, 2017
73,23,915
10.
No. of 3(B) returns filed for October, 2017
70,42,720
11.
No. of 3(B) returns filed for November, 2017
70,65,040
12.
No. of 3(B) returns filed for December, 2017
71,04,623
13.
No. of 3(B) returns filed for January, 2018
71,60,806
14.
No. of 3(B) returns filed for February, 2018
72,21,640
15.
No. of 3(B) returns filed for March, 2018
72,30,913
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,30,184
30.
No. of GSTR 1 returns filed for May, 2018
23,02,199
31.
No. of GSTR 1 returns filed for June, 2018
55,24,191
32.
No. of GSTR 1 returns filed for July, 2018
19,55,865
33.
No. of GSTR 2 returns filed for July, 2017
25,72,552
34.
No. of GSTR 4 returns filed for quarter July September, 2017
9,61,198
35.
No. of GSTR 4 returns filed for quarter October December, 2017
14,31,277
36.
No. of GSTR 4 returns filed for quarter January March, 2018
14,52,140
37.
No. of GSTR 4 returns filed for quarter April-June, 2018
13,25,253
16. CHALLENGES & FUTURE AHEAD:
16.1 Any new change is accompanied by difficulties and problems at the outset. A change as comprehensive as GST is bound to pose certain challenges not only for the government but also for business community, tax administration and even common citizens of the country. Some of these challenges relate to the unfamiliarity
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p;
16.3 NAPA has initiated investigation into various complaints of anti-profiteering and has passed orders in some cases to protect consumer interest.
16.4 To expedite sanction of refund, manual filing and processing of refunds has been enabled. Clarificatory Circulars and notifications have been issued to guide field formations of CBIC and States in this regard. The government has put in place an IT grievance redressal mechanism to address the difficulties faced by taxpayers owing to technical glitches on the GST portal.
16.5 The introduction of GST is truly a game changer for Indian economy as it has replaced multi-layered, complex indirect tax structure with a simple, transparent and technology-driven tax regime. It will integrate India into a single, common market by breaking barriers to inter-State trade and commerce. By eliminating cascading of taxes and reducing transaction costs, it will enhance ease of doing business in the country and provide an impetus
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Query (Issue) Started By: – satbir singhwahi Dated:- 5-9-2018 Last Reply Date:- 5-9-2018 Goods and Services Tax – GST
Got 1 Reply
GST
Two partnership firms having same common partners. Both firms receiving commission from abroad as intermediary.
Firm A has turnover of 40 lakhs , so paying gst.
Firm B has turnover of 18 lakhs, so not paying gst.
KIndly guide .
Reply By DR.MARIAPPAN GOVINDARAJAN:
The Reply:
Firm B is not required to registration.
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Annual Return (For Composition Taxpayer)
GSTR – 09A
GST
2[FORM GSTR – 9A
[See rule 80]
Annual Return (For Composition Taxpayer)
Pt. I
Basic Details
1
Financial Year
2
GSTIN
3A
Legal Name
3B
Trade Name (if any)
4
Period of composition scheme during the year (From – To -)
5
Aggregate Turnover of Previous Financial Year
(Amount in Rs.in all tables)
Pt. II
Details of outward and inward supplies made during the financial year
Description
Turnover
Rate of Tax
Centra l Tax
State / UT Tax
Integrate d tax
Cess
1
2
3
4
5
6
7
6
Details of Outward supplies made during the financial year
A
Taxable
B
Exempted, Nil-rated
C
Total
7
Details of inward supplies on which tax is payable on reverse charge basis (net of debit/credit notes) for the financial year
Description
Taxable Value
Central Tax
State Tax / UT Tax
Integrate d Tax
Cess
1
2
3
4
5
6
A
Inward supplies liable to reverse charge received from registered persons
B
Inward s
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tward) reduced through Amendments (-) (net of credit notes)
13
Inward supplies liable to reverse charge reduced through Amendments (-) (net of credit notes)
14
Differential tax paid on account of declaration made in 10, 11, 12 & 13 above
Description
Payable
Paid
1
2
3
Integrated Tax
Central Tax
State/UT Tax
Cess
Interest
Pt. V
Other Information
15
Particulars of Demands and Refunds
Description
Central Tax
State Tax / UT Tax
Integrate d Tax
Cess
Interest
Penalty
Late Fee / Other s
1
2
3
4
5
6
7
8
A
Total Refund claimed
B
Total Refund sanctioned
C
Total Refund Rejected
D
Total Refund Pending
E
Total demand of taxes
F
Total taxes paid in respect of E above
G
Total demands pending out of E above
16
Details of credit reversed or availed
Description
Central Tax
State Tax / UT Tax
Integrated Tax
Cess
1
2
3
4
5
A
Credit reversed on opting in the composition scheme (-)
B
Credit availed on opting out of the composition scheme (+
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ial year is the turnover of the financial year previous to the year for which the return is being filed. For example for the annual return for FY 2017-18, the aggregate turnover of FY 2016-17 shall be entered into this table. It is the sum total of turnover of all taxpayers registered on the same PAN.
4. Part II consists of the details of all outward and inward supplies in the financial year for which the annual return is filed. The instructions to fill Part II are as follows:
Table No.
Instructions
6A
Aggregate value of all outward supplies net of debit notes / credit notes, net of advances and net of goods returned for the entire financial year shall be declared here. Table 6 and Table 7 of FORM GSTR-4 may be used for filling up these details.
6B
Aggregate value of exempted, Nil Rated and Non-GST supplies shall be declared here.
7A
Aggregate value of all inward supplies received from registered persons on which tax is payable on reverse charge basis shall be declared here. T
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Y or date of filing of Annual Return for previous financial year (for example in the annual return for the FY 2017-18, the transactions declared in April to September 2018 for the FY 2017-18 shall be declared), whichever is earlier. The instructions to fill Part V are as follows:
Table No.
Instructions
10,11,12,13 and 14
Details of additions or amendments to any of the supplies already declared in the returns of the previous financial year but such amendments were furnished in Table 5 (relating to inward supplies) or Table 7 (relating to outward supplies) of FORM GSTR- 4 of April to September of the current financial year or upto the date of filing of Annual Return for the previous financial year, whichever is earlier shall be declared here.
6. Part V consists of details of other information. The instruction to fill Part V are as follows:
Table No.
Instructions
15A, 15B, 15C and 15D
Aggregate value of refunds claimed, sanctioned, rejected and pending for processing shall be de
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The details furnished in FORM ITC-03 may be used for filling up these details.
16B
Aggregate value of all the credit availed when a registered person opts out of the composition scheme shall be declared here. The details furnished in FORM ITC-01 may be used for filling up these details.
17
Late fee will be payable if annual return is filed after the due date.”;
7. Towards the end of the return, taxpayers shall be given an option to pay any additional liability declared in this form, through FORM DRC-03. Taxpayers shall select “Annual Return” in the drop down provided in FORM DRC-03. It may be noted that such liability shall be paid through electronic cash ledger only.]
********
Notes
1. Inserted vide Notification No. 39/2018 – Central Tax dated 04-09-2018
2. Substituted vide Notification No. 74/2018 – Central Tax dated 31-12-2018 before it was read as
“1[FORM GSTR-9A
(See rule 80)
Annual Return (For Composition Taxpayer)
Pt. I
Basic Details
1
Financial Year
2
GSTIN
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C
Import of services
D
Net Tax Payable on (A), (B) and (C) above
8
Details of other inward supplies as declared in returns filed during the financial year
A
Inward supplies from registered persons (other than 7A above)
B
Import of Goods
Pt. III
Details of tax paid as declared in returns filed during the financial year
9
Description
Total tax payable
Paid
1
2
3
Integrated Tax
Central Tax
State/UT Tax
Cess
Interest
Late fee
Penalty
Pt. IV
Particulars of the transactions for the previous FY declared in returns of April to September of current FY or upto date of filing of annual return of previous FY whichever is earlier
Description
Turnover
Central Tax
State Tax / UT Tax
Integrated Tax
Cess
1
2
3
4
5
6
10
Supplies / tax (outward) declared through Amendments (+) (net of debit notes)
11
Inward supplies liable to reverse charge declared through Amendments (+) (net of debit notes)
12
Supplies / tax (outward) reduced through Amendments (
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aid
Description
Payable
Paid
1
2
3
A
Central Tax
B
State Tax
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 and in case of any reduction in output tax liability the benefit thereof has been/will be passed on to the recipient of supply.
Signature
Place
Name of Authorised Signatory
Date
Designation / Status
Instructions: –
1. The details for the period between July 2017 to March 2018 shall be provided in this return.
2. Part I consists of basic details of taxpayer. The instructions to fill Part I are as follows :
Table No.
Instructions
5
Aggregate turnover for the previous financial year is the turnover of the financial year previous to the year for which the return is being filed. For example for the annual return for FY 2017-18, the aggregate turnover of FY 2016-17 shall be entered into this table. It is the sum
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e basis shall be declared here. Table 4C, Table 5 and Table 8A of FORM GSTR-4 may be used for filling up these details.
7C
Aggregate value of all services imported during the financial year shall be declared here. Table 4D and Table 5 of FORM GSTR-4 may be used for filling up these details.
8A
Aggregate value of all inward supplies received from registered persons on which tax is payable by the supplier shall be declared here. Table 4A and Table 5 of FORM GSTR-4 may be used for filling up these details.
8B
Aggregate value of all goods imported during the financial year shall be declared here.
4. Part IV consists of the details of amendments made for the supplies of the previous financial year in the returns of April to September of the current FY or date of filing of Annual Return for previous financial year (for example in the annual return for the FY 2017-18, the transactions declared in April to September 2018 for the FY 2017-18 shall be declared),whichever is earlier. The
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egate value of all refund sanction orders. Refund pending will be the aggregate amount in all refund application for which acknowledgement has been received and will exclude provisional refunds received. These will not include details of non-GST refund claims.
15E, 15F and 15G
Aggregate value of demands of taxes for which an order confirming the demand has been issued by the adjudicating authority has been issued shall be declared here. Aggregate value of taxes paid out of the total value of confirmed demand in 15E above shall be declared here. Aggregate value of demands pending recovery out of 15E above shall be declared here.
16A
Aggregate value of all credit reversed when a person opts to pay tax under the composition scheme shall be declared here. The details furnished in FORM ITC-03 may be used for filling up these details.
16B
Aggregate value of all the credit availed when a registered person opts out of the composition scheme shall be declared here. The details furnished i
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Annual Return
GSTR – 09
GST
2[FORM GSTR – 9
[See rule 80]
Annual Return
Pt. I
Basic Details
1
Financial Year
2
GSTIN
3A
Legal Name
3B
Trade Name (if any)
Pt. II
Details of Outward and inward supplies made during the financial year
(Amount in Rs. in all tables)
Nature of Supplies
Taxable Value
Central Tax
State Tax / UT Tax
Integrated Tax
Cess
1
2
3
4
5
6
4
Details of advances, inward and outward supplies made during the financial year on which tax is payable
A
Supplies made to un-registered persons (B2C)
B
Supplies made to registered persons (B2B)
C
Zero rated supply (Export) on payment of tax (except supplies to SEZs)
D
Supply to SEZs on payment of tax
E
Deemed Exports
F
Advances on w
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p;
N
Supplies and advances on which tax is to be paid (H + M) above
5
Details of Outward supplies made during the financial year on which tax is not payable
A
Zero rated supply (Export) without payment of tax
B
Supply to SEZs without payment of tax
C
Supplies on which tax is to be paid by the recipient on reverse charge basis
121[C1
Supplies on which tax is to be paid by ecommerce operators
as per section 9(5) [Supplier to report]
]
D
Exempted
E
Nil Rated
F
Non-GST supply (includes ‗no supply')
G
Sub-total (A to F above)
H
Credit Notes issued in respect of transactions specified in A to F above (-
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year availed in the financial year (which is included in 6A above) other than ITC reclaimed under rule 37 and rule 37A
A2
Net ITC of the financial year “(A-A1)”
]
B
Inward supplies (other than imports and inward supplies liable to reverse charge but includes services received from SEZs)
Inputs
Capital Goods
Input Services
C
Inward supplies received from unregistered persons liable to reverse charge (other than B above) on which tax is paid & ITC availed
Inputs
Capital Goods
Input Services
D
Inward supplies received from registered persons liable to reverse charge (other than B above) on which tax is paid and ITC availed
Inputs
Capital Goods
&nb
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ve)
7
Details of ITC Reversed and Ineligible ITC for the financial year
A
As per Rule 37
149[A1
As per Rule 37A
A2
As per rule 38
]
B
As per Rule 39
C
As per Rule 42
D
As per Rule 43
E
As per section 17(5)
F
Reversal of TRAN-I credit
G
Reversal of TRAN-II credit
H
Other reversals (pl. specify)
I
Total ITC Reversed (Sum of A to H above)
J
Net ITC Available for Utilization (6O – 7I)
8
Other ITC related information
144[A
ITC as per GSTR-2B (table 3
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J
ITC available but not availed on import of goods (Equal to I)
K
Total ITC to be lapsed in current financial year (E + F + J)
Pt. IV
Details of tax paid as declared in returns filed during the financial year
154[9
Description
Tax Payable
Paid through cash
Paid through ITC
Total Tax
Paid
Difference between
Tax payable and paid
Central
Tax
State Tax
/ UT Tax
Integrated
Tax
Cess
1
2
3
4
5
6
7
8 =
3+4+5+6+7
2-8
Integrated Tax
Central Tax
State/UT Tax
Cess
Int
= = = = = = = =
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= = = = = = = =
;financial year
14
Differential tax paid on account of declaration in 10 & 11 above
Description
Payable
Paid
Difference
1
2
3
2- 3
Integrated Tax
Central Tax
State/UT Tax
Cess
Interest
]
Pt. VI
Other Information
15
Particulars of Demands and Refunds
Details
Central Tax
State Tax / UT Tax
Integrated Tax
Cess
Intere st
Penalty
Late Fee / Other s
1
2
3
4
5
A
Total Refund claimed
B
Total Refund sanction ed
C
Total Refund Rejected
D
Total Refund Pending
E
Total demand of taxes
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= = = = = = = =
18
HSN Wise Summary of Inward supplies
HSN Cod e
UQC
Total Quantity
Taxable Value
Rate of Tax
Central Tax
State Tax / UT Tax
Integrated Tax
Cess
1
2
3
4
5
6
7
8
9
19
Late fee payable and paid
Description
Payable
Paid
1
2
3
A
Central Tax
B
State Tax
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 and in case of any reduction in output tax liability the benefit thereof has been/will be passed on to the recipient of supply.
Place
Signatory
Date
Signature
Name of Authorised
Designation / Status
Instructions: –
156[1. Terms used:
(a) GSTIN: Goods and Services Tax Identifica
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ared in this part. 6[It may be noted that additional liability for the FY 2017-18 19[or FY 2018-19] 56[or FY 2019-20] 72[or FY 2020-21] 86[or FY 2021-22] 105[or FY 2022-23] 123[or FY 2023-24] 159[or FY 2024-25] not declared in FORM GSTR-1 and FORM GSTR-3B may be declared in this return. However, taxpayers cannot claim input tax credit 20[*****] through this return.]
The instructions to fill Part II are as follows:
Table No.
Instructions
4A
Aggregate value of supplies made to consumers and unregistered persons on which tax has been paid shall be declared here. These will include details of supplies made through E-Commerce operators and are to be declared as net of credit notes or debit notes issued in this regard. Table 5, Table 7 along with respective amendments in Table 9 and Table 10 of FORM GSTR-1 124[as amended by FORM GSTR-1A, if any] may be used for filling up these details.
4B
Aggregate value of supplies made to registered persons (including supplies made
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= = = = = = = =
se details.
4F
Details of all unadjusted advances i.e. advance has been received and tax has been paid but invoice has not been issued in the current year shall be declared here. Table 11A of FORM GSTR-1 124[as amended by FORM GSTR-1A, if any] may be used for filling up these details.
4G
Aggregate value of all inward supplies (including advances and net of credit and debit notes) on which tax is to be paid by the recipient (i.e.by the person filing the annual return) on reverse charge basis. This shall include supplies received from registered persons, unregistered persons on which tax is levied on reverse charge basis. This shall also include aggregate value of all import of services. Table 3.1(d) of FORM GSTR-3B may be used for filling up these details.
125[4G1
Aggregate values of all the supplies (net of amendments) on which tax is to be paid by the ecommerce operators under section 9(5) is to be reported by e-commerce operator. Table 15 and 15A of FORM GSTR-1 may be re
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ty in reporting such details separately in this Table.]
4K & 4L
Details of amendments made to B to B supplies (4B), exports (4C), supplies to SEZs (4D) and deemed exports (4E), credit notes (4I), debit notes (4J) and refund vouchers shall be declared here. Table 9A and Table 9C of FORM GSTR-1 124[as amended by FORM GSTR-1A, if any] may be used for filling up these details. 23[For 57[FY 2017-18, 2018-19 73[, 2019-20 and 2020-21]], the registered person shall have an option to fill Table 4B to Table 4E net of amendments in case there is any difficulty in reporting such details separately in this table.]
5A
Aggregate value of exports (except supplies to SEZs) on which tax has not been paid shall be declared here. Table 6A of FORM GSTR-1 124[as amended by FORM GSTR-1A, if any] may be used for filling up these details.
5B
Aggregate value of supplies to SEZs on which tax has not been paid shall be declared here. Table 6B of GSTR-1 may be used for filling up these details
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ither separately report his supplies as exempted, nil rated and Non-GST supply or report consolidated information for all these three heads in the “exempted” row only.]
87[For FY 2021-22, the registered person shall report Non-GST supply (5F) separately and shall have an option to either separately report his supplies as exempted and nil rated supply or report consolidated information for these two heads in the “exempted” row only.]
106[For FY 2022-23, the registered person shall report Non-GST supply (5F) separately and shall have an option to either separately report his supplies as exempted and nil rated supply or report consolidated information for these two heads in the “exempted” row only.]
127[For FY 2023-24 160[and FY 2024-25,] the registered person shall report Non-GST supply (5F) separately and shall have an option to either separately report his supplies as exempted and nil rated supply or report consolidated information for these two heads in the “exempted” row only
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there is any difficulty in reporting such details separately in this Table.]
5J & 5K
Details of amendments made to exports (except supplies to SEZs) and supplies to SEZs on which tax has not been paid shall be declared here. Table 9A and Table 9C of FORM GSTR-1 124[as amended by FORM GSTR-1A, if any] may be used for filling up these details. 27[For57[FY 2017-18, 2018-19 88[2019-20, 107[2020-21, 128[2021-22, 163[2022-23, 2023-24 and 2024-25,]]]] the registered person shall have an option to fill Table 5A to Table 5F net of amendments in case there is any difficulty in reporting such details separately in this Table.]
5N
Total turnover including the sum of all the supplies (with additional supplies and amendments) on which tax is payable and tax is not payable shall be declared here. This shall also include amount of advances on which tax is paid but invoices have not been issued in the current year. However, this shall not include the aggregate value of inward supplies on
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nbsp;in any of the preceding financial year but reclaimed during the financial year for which this return is being filed, shall not be reported here as this will be reported in the Table 6H below.
Also, if any ITC which was claimed and reversed (other than due to rule 37 or rule 37A) in preceding financial year but reclaimed during the financial year for which this return is being filed, shall be reported here and this will not be reported in the Table 6H below.]
6B
Aggregate value of input tax credit availed on all inward supplies except those on which tax is payable on reverse charge basis but includes supply of services received from SEZs shall be declared here. It may be noted that the total ITC availed is to be classified as ITC on inputs, capital goods and input services. Table 4(A)(5) of FORM GSTR-3B may be used for filling up these details. This shall not include ITC which was availed, reversed and then reclaimed in the ITC ledger. This is to be declared separately under 6(H
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of services) on which tax is payable on reverse charge basis shall be declared here. It may be noted that the total ITC availed is to be classified as ITC on inputs, capital goods and input services. Table 4(A)(3) of FORM GSTR-3B may be used for filling up these details.
29[For FY 2017-18 and 2018-19, the registered person shall have an option to either report the breakup of input tax credit as inputs, capital goods and input services or report the entire input tax credit under the “inputs” row only. 59[130[FY 2019-20, 2020-21, 2021-22, 168[2022-23, 2023-24 and 2024-25,]] the registered person shall report the breakup of input tax credit as capital goods and have an option to either report the breakup of the remaining amount as inputs and input services or report the entire remaining amount under the “inputs” row only.]
For 60[FY 2017-18, 2018-19 76[, 2019-20 and 2020-21]], the registered person shall have an option to either report Table 6C and Table 6D separately or report th
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60[FY 2017-18, 2018-19 and 76[, 2019-20 and 2020-21]], the registered person shall have an option to either report Table 6C and Table 6D separately or report the consolidated details of Table 6C and 6D in Table 6D only.]
6E
Details of input tax credit availed on import of goods including supply of goods received from SEZs shall be declared here. It may be noted that the total ITC availed is to be classified as ITC on inputs and capital goods. Table 4(A)(1) of FORM GSTR-3B may be used for filling up these details. 30[For FY 2017-18 and 2018-19, the registered person shall have an option to either report the breakup of input tax credit as inputs and capital goods or report the entire input tax credit under the “inputs” row only.]
61[For 130[FY 2019-20, 2020-21, 2021-22, 2022-23 and 2023-24], the registered person shall report the breakup of input tax credit as capital goods and have an option to either report the breakup of the remaining amount as inputs and input services or re
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= = = = = = = =
ch was claimed and reversed (due to rule 37 or rule 37A) in any of the preceding financial year but reclaimed during the financial year for which this return is being filed, shall be reported here.
Also, if any ITC which was claimed and reversed (other than rule 37 or rule 37A) in preceding financial year but reclaimed during the financial year for which this return is being filed, shall not be reported here as it is to be reported in the Table 6A1 above.]
6J
The difference between the total amount of input tax credit availed through FORM GSTR-3B and input tax credit declared in row B to H shall be declared here. Ideally, this amount should be zero. 171[However, for FY 2024-25 onwards, the difference between the total amount of net ITC of the financial year availed through FORM GSTR-3B as per Table 6A2 and input tax credit declared in row B to H shall be auto populated here. Ideally, this amount should be zero.]
6K
Details of transition credit received in
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= = = = = = = =
of FORM GSTR-3B may be used for filling up these details. Any ITC reversed through FORM ITC -03 or any other reversal not specified in any row above shall be declared in 7H. For FY 2017-18, 2018-19, 2019-20, 202021, 2021-22, 2022-23 and 2023-24, the registered person shall have an option to either fill his information on reversals separately in Table 7A to 7E or report the entire amount of reversal under Table 7H only.]
8A
The total credit available for inwards supplies (other than imports and inwards supplies liable to reverse charge but includes services received from SEZs 132[and supplies received from E-commerce operators]) pertaining to 32[the financial year for which the return is being for] and reflected in FORM GSTR-2A (table 3 & 5 only) shall be auto-populated in this table. This would be the aggregate of all the input tax credit that has been declared by the corresponding suppliers 133[including e-commerce operators] in their FORM GSTR-1 33[For FY 2017-18,] 7[It may be note
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be auto-populated here. 35[For FY 2017-18 and 2018-19, the registered person shall have an option to upload the details for the entries in Table 8A to 8D duly signed, in PDF format in FORM GSTR-9C (without the CA certification).] 174[However, for FY 2024-25 onwards, the input tax credit as declared in Table 6B shall be auto-populated here.]
8C
64[Aggregate value of input tax credit availed on all inward supplies (except those on which tax is payable on reverse charge basis but includes supply of services received from SEZs) received during the financial year for which the annual return is being filed for but credit on which was availed in the next financial year within the period specified under Section 16(4) of the CGST Act, 2017.]
8D
Aggregate value of the input tax credit which was available in FORM GSTR-2A (table 3 & 5 only) but not availed in FORM GSTR-3B returns shall be computed based on values of 8A, 8B and 8C. However, there may be circumstances where the credit availed i
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l lapse for the current financial year shall be computed in this row.
6. Part IV is the actual tax paid during the financial year. Payment of tax under Table 6.1 of FORM GSTR-3B may be used for filling up these details.
7. 40[For FY 2017-18,] Part V consists of particulars of transactions for the previous financial year but paid in the FORM GSTR-3B of 9[between April 2018 to March 2019]. 41[For FY 2018-19, Part V consists of particulars of transactions for the previous financial year but paid in the FORM GSTR-3B between April 2019 to September 2019.] 65[For FY 2019-20, Part V consists of particulars of transactions for the previous financial year but paid in the FORM GSTR-3B between April 2020 to September 2020.] 79[For FY 2020-21, Part V consists of particulars of transactions for the previous financial year but paid in the FORM GSTR-3B between April 2021 to September 2021.] 91[For FY 2021-22, Part V consists of particulars of transactions for the previous
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us financial year but such amendments were furnished in Table 9A, Table 9B and Table 9C of FORM GSTR-1 of April 10[2018 to March 2019] shall be declared here. 43[For FY 2018-19, Details of additions or amendments to any of the supplies already declared in the returns of the previous financial year but such amendments were furnished in Table 9A, Table 9B and Table 9C of FORM GSTR-1 of April 2019 to September 2019 shall be declared here.]
66[For FY 2019-20, Details of additions or amendments to any of the supplies already declared in the returns of the previous financial year but such amendments were furnished in Table 9A, Table 9B and Table 9C of FORM GSTR-1 of April 2020 to September 2020 shall be declared here.]
80[For FY 2020-21, details of additions or amendments to any of the supplies already declared in the returns of the previous financial year but such amendments were furnished in Table 9A, Table 9B and Table 9C of FORM GSTR-1 of April 2021 to September 2021 shall be declared
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Table 10, details of supplies or tax increased through invoices or debit note or upward amendment of the same pertaining to the financial year but furnished in FORM GSTR-1 or as amended in FORM GSTR-1A or furnished through invoice furnishing facility of April to October of the next financial year, filed upto 30th November of next financial year shall be declared here.
From FY 2024-25 onwards, for Table 11, details of supplies or tax reduced through invoices or credit note pertaining to the financial year but furnished in FORM GSTR-1 or as amended in FORM GSTR-1A or furnished through invoice furnishing facility of April to October of the next financial year, filed upto 30th November of next financial year shall be declared here.]
12
44[For FY 2017-18,] Aggregate value of reversal of ITC which was availed in the previous financial year but reversed in returns filed for the months of April 11[2018 to March 2019] shall be declared here. Table 4(B) of FORM GSTR-3B may be used for f
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12[For FY 2022-23, aggregate value of reversal of ITC which was availed in the previous financial year but reversed in returns filed for the months of April, 2023 to October, 2023 filed upto 30th November, 2023 shall be declared here. Table 4(B) of FORM GSTR-3B may be used for filling up these details. 137[For FY 2023-24, aggregate value of reversal of ITC which was availed in the previous financial year but reversed in returns filed for the months of April, 2024 to October, 2024 filed upto 30th November, 2024 shall be declared here. Table 4(B) of FORM GSTR-3B may be used for filling up these details.]] 45[For FY 2018-19, Aggregate value of reversal of ITC which was availed in the previous financial year but reversed in returns filed for the months of April 2019 to September 2019 shall be declared here. Table 4(B) of FORM GSTR-3B may be used for filling up these details. For 68[FY 2017-18, 82[2018-19, 94[2019-20, 113[2020-21, 138[2021-22, 2022-23 and 2023-24]]]]], the r
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= = = = = = = =
financial year but ITC for the same was availed in returns filed for the months of April 2019 to September 2019 shall be declared here. Table 4(A) of FORM GSTR-3B may be used for filling up these details. However, any ITC which was reversed in the FY 2018-19 as per second proviso to subsection (2) of section 16 but was reclaimed in FY 2019-20, the details of such ITC reclaimed shall be furnished in the annual return for FY 2019-20. 69[For FY 2019-20, Details of ITC for goods or services received in the previous financial year but ITC for the same was availed in returns filed for the months of April 2020 to September 2020 shall be declared here. Table 4(A) of FORM GSTR-3B may be used for filling up these details. However, any ITC which was reversed in the FY 2019-20 as per second proviso to sub-section (2) of section 16 but was reclaimed in FY 2020-21, the details of such ITC reclaimed shall be furnished in the annual return for FY 2020-21.] 83[For FY 2020-21, details of ITC for goods
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= = = = = = = =
ual return for FY 2022-23.] 114[For FY 2022-23, details of ITC for goods or services received in the previous financial year but ITC for the same was availed in returns filed for the months of April, 2023 to October, 2023 filed upto 30th November, 2023 shall be declared here. Table 4(A) of FORM GSTR-3B may be used for filling up these details. However, any ITC which was reversed in the FY 2022-23 as per second proviso to sub-section (2) of section 16 but was reclaimed in FY 2023-24, the details of such ITC reclaimed shall be furnished in the annual return for FY 2023-24.] 139[For FY 2023-24, details of ITC for goods or services received in the previous financial year but ITC for the same was availed in returns filed for the months of April, 2024 to October, 2024 filed upto 30th November, 2024 shall be declared here. Table 4(A) of FORM GSTR-3B may be used for filling up these details. However, any ITC which was reversed in the FY 2023-24 as per second proviso to sub-section (2) of
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8. Part VI consists of details of other information. The instructions to fill Part VI are as follows:
Table No.
Instructions
15A, 15B, 15C and 15D
Aggregate value of refunds claimed, sanctioned, rejected and pending for processing shall be declared here. Refund claimed will be the aggregate value of all the refund claims filed in the financial year and will include refunds which have been sanctioned, rejected or are pending for processing. Refund sanctioned means the aggregate value of all refund sanction orders. Refund pending will be the aggregate amount in all refund application for which acknowledgement has been received and will exclude provisional refunds received. These will not include details of non-GST refund claims. 48[For 71[FY 2017-18, 85[2018-19, 97[2019-20, 116[2020-21, 141[2021-22, 181[2022-23, 2023-24 and 2024-25]]]]]], the registered person shall have an option to not fill this Table.]
15E, 15F and 15G
Aggregate value of demands of taxes for which an order confi
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1[For 71[FY 2017-18, 85[2018-19, 98[2019-20, 117[2020-21, 141[2021-22, 184[2022-23, 2023-24 and 2024-25]]]]]], the registered person shall have an option to not fill this table.]
16C
Aggregate value of all deemed supplies for goods which were sent on approval basis but were not returned to the principal supplier within one eighty days of such supply shall be declared here. 51[For 71[FY 2017-18, 85[2018-19, 98[2019-20, 117[2020-21, 141[2021-22, 185[2022-23, 2023-24 and 2024-25]]]]]], the registered person shall have an option to not fill this table.]
17 & 18
Summary of supplies effected and received against a particular HSN code to be reported only in this table. It will be optional for taxpayers having annual turnover upto Rs. 1.50 Cr. It will be mandatory to report HSN code at two digits level for taxpayers having annual turnover in the preceding year above Rs. 1.50 Cr but upto Rs. 5.00 Cr and at four digits 'level for taxpayers having annual turnover above Rs. 5.00 Cr. 99[From FY
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after the due date.
9. Towards the end of the return, taxpayers shall be given an option to pay any additional liability declared in this form, through FORM DRC-03. Taxpayers shall select “Annual Return” in the drop down provided in FORM DRC-03. It may be noted that such liability can be paid through electronic cash ledger 187[or electronic credit ledger].]
*************
NOTES:-
1.
Inserted vide Notification No. 39/2018 – Central Tax dated 04-09-2018
2.
Substituted vide Notification No. 74/2018 – Central Tax dated 31-12-2018 before it was read as
“1[FORM GSTR-9
(See rule 80)
Annual Return
Pt. I
Basic Details
1
Financial Year
2
GSTIN
3A
Legal Name
3B
Trade Name (if any)
Pt. II
Details of Outward and inward supplies declared during the financial year
(Amount in Rs. in all tables)
Nature of Supplies
Taxable Value
Central Tax
State Tax / UT Tax
Integrated Tax
Cess
1
2
3
4
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
) to (E) above (-)
J
Debit Notes issued in respect of transactions specified in (B) to (E) above (+)
K
Supplies / tax declared through Amendments (+)
L
Supplies / tax reduced through Amendments (-)
M
Sub-total (I to L above)
N
Supplies and advances on which tax is to be paid (H + M) above
5
Details of Outward supplies on which tax is not payable as declared in returns filed during the financial year
A
Zero rated supply (Export) without payment of tax
B
Supply to SEZs without payment of tax
C
Supplies on which tax is to be paid by the recipient on r
= = = = = = = =
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= = = = = = = =
+ 5M – 4G above)
Pt. III
Details of ITC as declared in returns filed during the financial year
Description
Type
Central Tax
State Tax /UT Tax
Integrated Tax
Cess
1
2
3
4
5
6
6
Details of ITC availed as declared in returns filed during the financial year
A
Total amount of input tax credit availed through FORM GSTR-3B (sum total of Table 4A of FORM GSTR-3B)
< Auto >
< Auto >
< Auto >
< Auto >
B
Inward supplies (other than imports and inward supplies liable to reverse charge but includes services received from SEZs)
Inputs
Capital Goods
Input Services
C
Inward supplies received from unregistered persons liable to reverse charge (other than B above) on which tax is paid & ITC availed
Inputs
Capital Goods
Input Servic
= = = = = = = =
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= = = = = = = =
;
L
Transition Credit through TRAN-II
M
Any other ITC availed but not specified above
N
Sub-total (K to M above)
O
Total ITC availed (I + N above)
7
Details of ITC Reversed and Ineligible ITC as declared in returns filed during the financial year
A
As per Rule 37
B
As per Rule 39
C
As per Rule 42
D
As per Rule 43
E
As per section 17(5)
F
Reversal of TRAN-I credit
G
Reversal of TRAN-II credit
H
Other reversals (pl. specify)
I
Total ITC Reversed (A to H above)
&
= = = = = = = =
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= = = = = = = =
nbsp;
J
ITC available but not availed on import of goods (Equal to I)
K
Total ITC to be lapsed in current financial year (E + F + J)
Pt. IV
Details of tax paid as declared in returns filed during the financial year
9
Description
Tax Payable
Paid through cash
Paid through ITC
Central Tax
State Tax / UT Tax
Integrated Tax
Cess
1
2
3
4
5
6
7
Integrated Tax
Central Tax
State/UT Tax
Cess
Interest
Late fee
Penalty
Other
&
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= = = = = = = =
Cess
Interest
Pt. VI
Other Information
15
Particulars of Demands and Refunds
Details
Central Tax
State Tax / UT Tax
Integrated Tax
Cess
Interest
Penalty
Late Fee / Others
1
2
3
4
5
A
Total Refund claimed
B
Total Refund sanctioned
C
Total Refund Rejected
D
Total Refund Pending
E
Total demand of taxes
F
Total taxes paid in respect of E above
G
Total demands pending out of E above
16
Information on supplies received from co
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sp;
19
Late fee payable and paid
Description
Payable
Paid
1
2
3
A
Central Tax
B
State Tax
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 and in case of any reduction in output tax liability the benefit thereof has been/will be passed on to the recipient of supply.
Signature
Place
Name of Authorised Signatory
Date &n
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= = = = = = = =
tions
4A
Aggregate value of supplies made to consumers and unregistered persons on which tax has been paid shall be declared here. These will include details of supplies made through E-Commerce operators and are to be declared as net of credit notes or debit notes issued in this regard. Table 5, Table 7 along with respective amendments in Table 9 and Table 10 of FORM GSTR-1 may be used for filling up these details.
4B
Aggregate value of supplies made to registered persons (including supplies made to UINs) on which tax has been paid shall be declared here. These will include supplies made through E-Commerce operators but shall not include supplies on which tax is to be paid by the recipient on reverse charge basis. Details of debit and credit notes are to be mentioned separately. Table 4A and Table 4C of FORM GSTR-1 may be used for filling up these details.
4C
Aggregate value of exports (except supplies to SEZs) on which tax has been paid shall be declared here. Table 6A of FORM G
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ggregate value of all import of services. Table 3.1(d) of FORM GSTR-3B may be used for filling up these details.
4I
Aggregate value of credit notes issued in respect of B to B supplies (4B), exports (4C), supplies to SEZs (4D) and deemed exports (4E) shall be declared here. Table 9B of FORM GSTR-1 may be used for filling up these details.
4J
Aggregate value of debit notes issued in respect of B to B supplies (4B), exports (4C), supplies to SEZs (4D) and deemed exports (4E) shall be declared here. Table 9B of FORM GSTR-1 may be used for filling up these details.
4K & 4L
Details of amendments made to B to B supplies (4B), exports (4C), supplies to SEZs (4D) and deemed exports (4E), credit notes (4I), debit notes (4J) and refund vouchers shall be declared here. Table 9A and Table 9C of FORM GSTR-1 may be used for filling up these details.
5A
Aggregate value of exports (except supplies to SEZs) on which tax has not been paid shall be declared here. Table 6A of FORM GSTR
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le 9B of FORM GSTR-1 may be used for filling up these details.
5J & 5K
Details of amendments made to exports (except supplies to SEZs) and supplies to SEZs on which tax has not been paid shall be declared here. Table 9A and Table 9C of FORM GSTR-1 may be used for filling up these details.
5N
Total turnover including the sum of all the supplies (with additional supplies and amendments) on which tax is payable and tax is not payable shall be declared here. This shall also include amount of advances on which tax is paid but invoices have not been issued in the current year. However, this shall not include the aggregate value of inward supplies on which tax is paid by the recipient (i.e. by the person filing the annual return) on reverse charge basis.
4. Part III consists of the details of all input tax credit availed and reversed in the financial year for which the annual return is filed. The instructions to fill Part III are as follows:
Table No.
Instruct
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4(A)(3) of FORM GSTR-3B may be used for filling up these details.
6D
Aggregate value of input tax credit availed on all inward supplies received from registered persons on which tax is payable on reverse charge basis shall be declared here. It may be noted that the total ITC availed is to be classified as ITC on inputs, capital goods and input services. Table 4(A)(3) of FORM GSTR-3B may be used for filling up these details.
6E
Details of input tax credit availed on import of goods including supply of goods received from SEZs shall be declared here. It may be noted that the total ITC availed is to be classified as ITC on inputs and capital goods. Table 4(A)(1) of FORM GSTR-3B may be used for filling up these details.
6F
Details of input tax credit availed on import of services (excluding inward supplies from SEZs) shall be declared here. Table 4(A)(2) of FORM GSTR-3B may be used for filling up these details.
6G
Aggregate value of input tax credit received from input service dis
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7C, 7D, 7E, 7F, 7G and 7H
Details of input tax credit reversed due to ineligibility or reversals required under rule 37, 39,42 and 43 of the CGST Rules, 2017 shall be declared here. This column should also contain details of any input tax credit reversed under section 17(5) of the CGST Act, 2017 and details of ineligible transition credit claimed under FORM GST TRAN-I or FORM GST TRAN-II and then subsequently reversed. Table 4(B) of FORM GSTR-3B may be used for filling up these details. Any ITC reversed through FORM ITC -03 shall be declared in 7H.
8A
The total credit available for inwards supplies (other than imports and inwards supplies liable to reverse charge but includes services received from SEZs) received during 2017-18 and reflected in FORM GSTR-2A (table 3 & 5 only) shall be auto-populated in this table. This would be the aggregate of all the input tax credit that has been declared by the corresponding suppliers in their FOR
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d here.
8H
The input tax credit as declared in Table 6E shall be auto-populated here.
8K
The total input tax credit which shall lapse for the current financial year shall be computed in this row.
5. Part IV is the actual tax paid during the financial year. Payment of tax under Table 6.1 of FORM GSTR-3B may be used for filling up these details.
6. Part V consists of particulars of transactions for the previous financial year but declared in the returns of April to September of current FY or date of filing of Annual Return for previous financial year (for example in the annual return for the FY 2017-18, the transactions declared in April to September 2018 for the FY 2017-18 shall be declared), whichever is earlier. The instructions to fill Part V are as follows:
Table No.
Instructions
10 & 11
Details of additions or amendments to any of the supplies already declared in the returns of the previous financial year but such amendments were furnished in
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consists of details of other information. The instructions to fill Part VI are as follows:
Table No.
Instructions
15A, 15B, 15C and 15D
Aggregate value of refunds claimed, sanctioned, rejected and pending for processing shall be declared here. Refund claimed will be the aggregate value of all the refund claims filed in the financial year and will include refunds which have been sanctioned, rejected or are pending for processing. Refund sanctioned means the aggregate value of all refund sanction orders. Refund pending will be the aggregate amount in all refund application for which acknowledgement has been received and will exclude provisional refunds received. These will not include details of non-GST refund claims.
15E, 15F and 15G
Aggregate value of demands of taxes for which an order confirming the demand has been issued by the adjudicating authority shall be declared here. Aggregate value of taxes paid out of the total value of confirmed demand&
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er in the preceding year above Rs. 1.50 Cr but upto Rs. 5.00 Cr and at four digits' level for taxpayers having annual turnover above Rs. 5.00 Cr. UQC details to be furnished only for supply of goods. Quantity is to be reported net of returns. Table 12 of FORM GSTR1 may be used for filling up details in Table 17.
19
Late fee will be payable if annual return is filed after the due date.]”
3.
Substituted vide Notification No. 31/2019 – Central Tax dated 28-06-2019 w.e.f. 28-06-2019 before it was read as “to September, 2018”
4.
Substituted vide Notification No. 31/2019 – Central Tax dated 28-06-2019 w.e.f. 28-06-2019 before it was read as “previous FY declared in returns of April to September of current FY or upto date of filing of annual return of previous FY whichever is earlier”
5.
Omitted vide Notification No. 31/2019 – Central Tax dated 28-06-2019 w.e.f. 28-06-2019 before it was read as,
“3. It may be noted that additional liability for the FY 2017-18 not declared in
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“to September of the current financial year or date of filing of Annual Return for the previous financial year, whichever is earlier”
11.
Substituted vide Notification No. 31/2019 – Central Tax dated 28-06-2019 w.e.f. 28-06-2019 before it was read as
“to September of the current financial year or date of filing of Annual Return for previous financial year, whichever is earlier
12.
Substituted vide Notification No. 31/2019 – Central Tax dated 28-06-2019 w.e.f. 28-06-2019 before it was read as
“to September of the current financial year or date of filing of Annual Return for the previous financial year whichever is earlier”
13.
Inserted vide Notification No. 56/2019 – Central Tax dated 14-11-2019
14.
Inserted vide Notification No. 56/2019 – Central Tax dated 14-11-2019
15.
Inserted vide Notification No. 56/2019 – Central Tax dated 14-11-2019
16.
Inserted vide Notification No. 56/2019 – Central Tax dated 14-11-2019
17.
Substituted vide Notification No. 56/2019 –
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4-11-2019
27.
Inserted vide Notification No. 56/2019 – Central Tax dated 14-11-2019
28.
Inserted vide Notification No. 56/2019 – Central Tax dated 14-11-2019
29.
Inserted vide Notification No. 56/2019 – Central Tax dated 14-11-2019
30.
Inserted vide Notification No. 56/2019 – Central Tax dated 14-11-2019
31.
Inserted vide Notification No. 56/2019 – Central Tax dated 14-11-2019
32.
Substituted vide Notification No. 56/2019 – Central Tax dated 14-11-2019 before it was read as “FY 2017-18”
33.
Inserted vide Notification No. 56/2019 – Central Tax dated 14-11-2019
34.
Inserted vide Notification No. 56/2019 – Central Tax dated 14-11-2019
35.
Inserted vide Notification No. 56/2019 – Central Tax dated 14-11-2019
36.
Inserted vide Notification No. 56/2019 – Central Tax dated 14-11-2019
37.
Inserted vide Notification No. 56/2019 – Central Tax dated 14-11-2019
38.
Inserted vide Notification No. 56/2019 – Central Tax dated 14-11-2019
39.
Inserted vide Notificati
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19 – Central Tax dated 14-11-2019
53.
Substituted vide Notification No. 79/2020 – Central Tax dated 15-10-2020 before it was read as,
“13[For FY 2017-18] ITC on inward supplies (other than imports and inward supplies liable to reverse charge but includes services received from SEZs) received during 2017-18 but availed during April 3[2018 to March 2019] 14[For FY 2018-19, ITC on inward supplies (other than imports and inward supplies liable to reverse charge but includes services received from SEZs) received during 2018-19 but availed during April 2019 to September 2019]”
54.
Substituted vide Notification No. 79/2020 – Central Tax dated 15-10-2020 before it was read as,
“15[For FY 2017-18] Particulars of the transactions for the 4[FY 2017-18 declared in returns between April 2018 till March 2019] 16[For FY 2018-19, Particulars of the transactions for the FY 2018-19 declared in returns between April 2019 till September 2019]”
55.
Inserted vide&nb
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sp;before it was read as,
“36[For FY 2017-18,] Aggregate value of input tax credit availed on all inward supplies (except those on which tax is payable on reverse charge basis but includes supply of services received from SEZs) received during July 2017 to March 2018 but credit on which was availed between April 8[2018 to March 2019] shall be declared here. 37[For FY 2018-19, Aggregate value of input tax credit availed on all inward supplies (except those on which tax is payable on reverse charge basis but includes supply of services received from SEZs) received during April 2018 to March 2019 but credit on which was availed between April 2019 to September 2019 shall be declared here.] Table 4(A)(5) of FORM GSTR-3B may be used for filling up these details. 38[For FY 2017-18 and 2018-19, the registered person shall have an option to upload the details for the entries in Table 8A to Table 8D duly signed, in PDF format in FORM GSTR-9C (without the CA certification).]”
65.
Insert
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p;Notification No. 30/2021-Central Tax dated 30-07-2021 w.e.f. 01-08-2021
75.
Inserted vide Notification No. 30/2021-Central Tax dated 30-07-2021 w.e.f. 01-08-2021
76.
Substituted vide Notification No. 30/2021-Central Tax dated 30-07-2021 w.e.f. 01-08-2021 before it was read as “and 2019-20”
77.
Substituted vide Notification No. 30/2021-Central Tax dated 30-07-2021 w.e.f. 01-08-2021 before it was read as “FY 2019-20”
78.
Substituted vide Notification No. 30/2021-Central Tax dated 30-07-2021 w.e.f. 01-08-2021 before it was read as “2018-19 and 2019-20”
79.
Inserted vide Notification No. 30/2021-Central Tax dated 30-07-2021 w.e.f. 01-08-2021
80.
Inserted vide Notification No. 30/2021-Central Tax dated 30-07-2021 w.e.f. 01-08-2021
81.
Inserted vide Notification No. 30/2021-Central Tax dated 30-07-2021 w.e.f. 01-08-2021
82.
Substituted vide Notification No. 30/2021-Central Tax dated 30-07-2021 w.e.f. 01-0
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on No. 14/2022-Central Tax dated 05-07-2022 before it was read as, “2019-20 and 2020-21”
91.
Inserted vide Notification No. 14/2022-Central Tax dated 05-07-2022
92.
Inserted vide Notification No. 14/2022-Central Tax dated 05-07-2022
93.
Inserted vide Notification No. 14/2022-Central Tax dated 05-07-2022
94.
Substituted vide Notification No. 14/2022-Central Tax dated 05-07-2022 before it was read as, “2019-20 and 2020-21”
95.
Inserted vide Notification No. 14/2022-Central Tax dated 05-07-2022
96.
Substituted vide Notification No. 14/2022-Central Tax dated 05-07-2022 before it was read as, “2019-20 and 2020-21”
97.
Substituted vide Notification No. 14/2022-Central Tax dated 05-07-2022 before it was read as, “2019-20 and 2020-21”
98.
Substituted vide Notification No. 14/2022-Central Tax dated 05-07-2022 before it was read as, “2019-20 and 2020-21”
99.
I
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s, “2020-21 and 2021-22”
108.
Substituted vide Notification No. 38/2023- Central Tax dated 04-08-2023 before it was read as, “89[FY 2019-20, 2020-21 and 2021-22]”
109.
Substituted vide Notification No. 38/2023- Central Tax dated 04-08-2023 before it was read as, “2020-21 and 2021-22”
110.
Inserted vide Notification No. 38/2023- Central Tax dated 04-08-2023
111.
Inserted vide Notification No. 38/2023- Central Tax dated 04-08-2023
112.
Inserted vide Notification No. 38/2023- Central Tax dated 04-08-2023
113.
Substituted vide Notification No. 38/2023- Central Tax dated 04-08-2023 before it was read as, “2020-21 and 2021-22”
114.
Inserted vide Notification No. 38/2023- Central Tax dated 04-08-2023
115.
Substituted vide Notification No. 38/2023- Central Tax dated 04-08-2023 before it was read as, “2020-21 and 2021-22”
116.
Substituted vide Notification No. 38/2023- Central Tax dated 04-08-2023 before it was read as, “2020-21 and 2021-22”
117.
Substituted vide Notificatio
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p;w.e.f. 10-07-2024
125.
Inserted vide Notification No. 12/2024 – Central Tax dated 10-07-2024 w.e.f. 10-07-2024
126.
Inserted vide Notification No. 12/2024 – Central Tax dated 10-07-2024 w.e.f. 10-07-2024
127.
Inserted vide Notification No. 12/2024 – Central Tax dated 10-07-2024 w.e.f. 10-07-2024
128.
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”
129.
Inserted vide Notification No. 12/2024 – Central Tax dated 10-07-2024 w.e.f. 10-07-2024
130.
Substituted vide Notification No. 12/2024 – Central Tax dated 10-07-2024 w.e.f. 10-07-2024 before it was read as, “108[FY 2019-20, 2020-21, 2021-22 and 2022-23]”
131.
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”
132.
Inserted
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ore it was read as, “2021-22 and 2022-23”
141.
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”
142.
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”
143.
Inserted vide Notification No. 12/2024 – Central Tax dated 10-07-2024 w.e.f. 10-07-2024
144.
Substituted vide Notification No. 20/2024 – Central Tax dated 08-10-2024 w.e.f. 08-10-2024 before it was read as,
“A
ITC as per GSTR-2A (Table 3 & 5 thereof)
”
145.
Inserted vide Notification No. 13/2025-Central Tax dated 17-09-2025 w.e.f. 22-09-2025
146.
Omitted vide Notification No. 13/2025-Central Tax dated 17-09-202
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ax dated 17-09-2025 w.e.f. 22-09-2025
153.
Substituted vide Notification No. 13/2025-Central Tax dated 17-09-2025 w.e.f. 22-09-2025 before it was read as,
“I
Difference (G-H)
”
154.
Substituted vide Notification No. 13/2025-Central Tax dated 17-09-2025 w.e.f. 22-09-2025 before it was read as,
“9
Description
Tax Payable
Paid through cash
Paid through ITC
Central Tax
State Tax / UT Tax
Integrated Tax
Cess
1
2
3
4
5
6
7
Integrated Tax
Central Tax
State/UT Tax
Cess
Interest
Late fee
Penalty
Other
 
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22-09-2025 before it was read as,
“1. Terms used:
a. GSTIN: Goods and Services Tax Identification Number
b. UQC: Unit Quantity Code
c. HSN: Harmonized System of Nomenclature Code”
157.
Inserted vide Notification No. 13/2025-Central Tax dated 17-09-2025 w.e.f. 22-09-2025
158.
Inserted vide Notification No. 13/2025-Central Tax dated 17-09-2025 w.e.f. 22-09-2025
159.
Inserted vide Notification No. 13/2025-Central Tax dated 17-09-2025 w.e.f. 22-09-2025
160.
Inserted vide Notification No. 13/2025-Central Tax dated 17-09-2025 w.e.f. 22-09-2025
161.
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”
162.
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”
163.
Substituted vide&nb
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sp;
Inserted vide Notification No. 13/2025-Central Tax dated 17-09-2025 w.e.f. 22-09-2025
171.
Inserted vide Notification No. 13/2025-Central Tax dated 17-09-2025 w.e.f. 22-09-2025
172.
Substituted vide Notification No. 13/2025-Central Tax dated 17-09-2025 w.e.f. 22-09-2025 before it was read as,
“6M
Details of ITC availed but not covered in any of heads specified under 6B to 6L above shall be declared here. Details of ITC availed through FORM ITC-01 and FORM ITC-02 in the financial year shall be declared here.”
173.
Substituted vide Notification No. 13/2025-Central Tax dated 17-09-2025 w.e.f. 22-09-2025 before it was read as,
“7A, 7B, 7C, 7D, 7E, 7F, 7G and 7H
Details of input tax credit reversed due to ineligibility or reversals required under rule 37, 39, 42 and 43 of the CGST Rules, 2017 shall be declared here. This column should also contain details of any input tax credit reversed under section 17
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= = = = = = = =
;Notification No. 13/2025-Central Tax dated 17-09-2025 w.e.f. 22-09-2025
175.
Inserted vide Notification No. 13/2025-Central Tax dated 17-09-2025 w.e.f. 22-09-2025
176.
Inserted vide Notification No. 13/2025-Central Tax dated 17-09-2025 w.e.f. 22-09-2025
177.
Inserted vide Notification No. 13/2025-Central Tax dated 17-09-2025 w.e.f. 22-09-2025
178.
Inserted vide Notification No. 13/2025-Central Tax dated 17-09-2025 w.e.f. 22-09-2025
179.
Inserted vide Notification No. 13/2025-Central Tax dated 17-09-2025 w.e.f. 22-09-2025
180.
Inserted vide Notification No. 13/2025-Central Tax dated 17-09-2025 w.e.f. 22-09-2025
181.
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”
182.
Substituted vide Notification No. 13/2025-Central Tax dated 17-09-2025&n
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Affordable Housing Construction Services Under 12% GST; Standard Rate Applies for Flats Over 60 Sqm (Heading 9954.
Case-Laws
GST
Rate of GST – construction services – Affordable Housing – The applicant’s case is covered under the tax rate of 12%, under Heading 9954 (Construction Services) – In case of other flats which have carpet area more than 60 sq.mtrs. the applicant would be required to pay GST at normal applicable rate.
TMI Updates – Highlights, quick notes, marquee, annotat
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Charitable trust's religious activities deemed “business” under Central and Maharashtra GST Acts, subject to tax provisions.
Case-Laws
GST
Charitable Trust – scope of the term 'Business' – Whether the applicant which is a charitable trust with the main object of advancement of religion, spirituality or yoga can be said to be in business so as to attract the provisions of Central Goods and Service Tax Act, 2017 and Maharashtra Goods and Service Tax Act, 2017? – Held Yes.
TMI Updates
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GST Regime Transition: No Input Tax Credit for Unutilized CENVAT Credit, Including Education and Krishi Kalyan Cess.
Case-Laws
GST
Input Tax Credit – transition to GST Regime – The input tax
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In Re: M/s. Asahi Kasei India Private Limited
GST
2019 (1) TMI 1091 – AUTHORITY FOR ADVANCE RULINGS MAHARASHTRA – 2019 (21) G. S. T. L. 243 (A. A. R. – GST)
AUTHORITY FOR ADVANCE RULINGS MAHARASHTRA – AAR
Dated:- 5-9-2018
GST-ARA-35/2018-19/B-108
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 Asahi Kasei India Private Limited, the applicant, seeking an advance ruling in respect of the following ISSUE. .
1. Whether the service supplied by the Applicant under the Service Agreement dated 1 March 2013 constitute a supply of “Support services” falling under HSN code 9985 “Intermediary service” classifiable under HS
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ssions, as reproduced verbatim, could be seen thus-
STATEMENT OF THE RELEVANT FACTS HAVING A BEARING ON THE QUESTIONS:
Asahi Kasei India Private Limited (hereinafter referred to as the “Applicant”) is a company incorporated in India in August 2012. The Applicant is a subsidiary of Asahi Kasei Corporation, Japan (“Asahi Japan”).
Asahi Japan is the flagship company of the Asahi Kasei group. Asahi Kasei group S fibers and textiles, petrochemicals, pharmaceuticals, polymers, electronic devices, home products, construction materials, health care etc.
The Applicant provides sales promotion and marketing support to Asahi Kasei group. For this, the Applicant has entered in to a Services Agreement dated 01 March 2013 with Asahi Japan and Marketing Services Agreement with various group companies of Asahi Kasei group. The scope of work under the Agreement is broadly stated below:
a. Collecting and analyzing information i.e. market analysis and supporting Asahi Kasei group in getting new busi
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cated Products Division (Asaclean) of Asahi Kasei Chemicals Corporation [dated 01 October 2013] as amended vide agreement dated 01 July 2016: (modified 5th January 2017 and taken over by Asahi Kasei Corporation, Japan)
d. Agreement with Asahi Kasei Plastics North America Inc. [dated 02 January 2014];
e. Agreement with Asahi Kasei Home Products Corporation [dated 01 April 2015];
f. Agreement with Bemberg Division of Asahi Kasei Fibers Corporation (dated 01 May 2015]; (modified 5th January 2017 and taken over by Asahi Kasei Corporation, Japan)
STATEMENT CONTAINING APPLICANTS INTERPRETATION OF LAW IN RESPECT OF THE QUESTIONS RAISED
Question on which advance ruling is required
Whether the service supplied by the Applicant under the Service Agreement dated 1 March 2013 constitute a supply of “Support services” falling under HSN code 9985 “Intermediary service” classifiable under HSN code 9961 /9962?
Statement of facts having a bearing on the question
The scope of the services provid
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ndia or any other mutually agreed territory) as Party A may from time to time request. In the event Party A should require more detailed information than that so provided by Party B, Party B shall exert its best efforts to obtain such further or more detailed information.
6. At such time and from time to time, as and when representatives of Party A, or its related business circles or customers visit the Territory and Party A so requests, Party B shall provide necessary assistance in business activities (including interpreting) to such representatives.
7. From time to time, as and clean requested by Party A, Party B shall make market surveys of the Products in the Territory and report the results thereof to Party A.
8. Party B shall perform services, as directed by Party A, resulting from the assignments pursuant to paragraph 4 through 7 of this Agreement, including, but not limited to, those services with regard to finance, accounting, and patent and legal matters.”
As per Clause 9
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s entered either by local agent or by Asahi Japan or other overseas group company directly.
In fulfilment of its obligation, the Applicant has undertaken following activities:
(i) Providing reports on the condition of the economy and undertaking market survey
(ii) Visit to existing and perspective customers to understand their requirement, their business plan and their feedback and reporting to Asahi Japan
(iii) Providing information on the products of Asahi Japan to the existing and perspective customers
(iv) Generating marketing leads and relaying to Asahi Japan
(v) Helping customer on the product trial
(vi) Facilitating meeting between customers and agent Asahi Japan
Statement containing the applicant's interpretation of law
1. There are two possible classifications for the services supplied by the Applicant. The relevant HSN codes along with its description are tabulated hereunder:
SR.NO.
HSN CODE
TARIFF ENTRY
i.
9961 / 9962
Intermediary service – Services in w
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son. In order to examine this limb, it would be apt to refer to the dictionary definitions of the terms “broker” and “agent”. The relevant extract of the various dictionary definitions are as follows:
a. Broker
i. Halsbury[s Laws of England, 4th Edition, Volume 1, Para 712, Page 424: – A mercantile agent who in the ordinary course of his business is employed to make contracts for the purchase or sale of property or goods of which he is not entrusted with the possession or documents of title [Alapati Ramamurthi, Gelli Krishnamurthy & Co. Vs. J. Ramanujan and Ors. (ALR 1961 AP 408) = 1960 (7) TMI 66 – ANDHRA PRADESH HIGH COURT].
ii. K J Aiyar's Judicial Dictionary: – Word meaning an agent but used generally in a more special sense for one Who buys or sells on behalf of another. He must act according to the instructions given to him and as a general rule, his task is finished when he has made a contract between a buyer and the seller… Brokers are remunerated by commission known as br
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h a manner as to put those who employ him in a condition to treat together personally;
(2) and more commonly an agent employed by one party only to make a binding contract with another.
b. Agent
i. Shorter Oxford English Dictionary (Deluxe Edition): A person who acts for another un business, politics, etc.;
ii. Section 182 of the Indian Contract Act 1872: – An “Agent” is a person employed to do any act for another or to represent another in dealings with third persons;
iii. Concise Law Dictionary (2008 Edition): – An agent acts on behalf of his principal and often uses is name and his acts in that capacity are attributable to the principal;
5. Having understood the meaning of the terms '”broker” and an “agent”, it would be imperative to examine the scope of the term ll any other person, by whatever name called”. In this regard, it is humbly submitted that the scope of this phrase is restricted by the preceding words “broker or agent” by applying the principle of “Ejusdem Generis
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e Delhi High Court decision in the case of Areva T & D India Ltd. Vs. DCIT [2012-TIOL-234-HC-DEL-IT) = 2012 (4) TMI 79 – DELHI HIGH COURT wherein the Hon'ble High Court applied the principle of ejusdem generis to interpret the expression “business or commercial rights of similar nature” referred to in section 32(1)(ii) of the Act and held that the Legislature did not intend to provide for depreciation only in respect of specified intangible assets but also to other categories of intangible assets, which were neither feasible nor possible to exhaustively enumerate.
The principle of ejusdem generis was also upheld by the Apex Court in the case of Assistant Collector of C.Ex. Vs. Ramdev Tobacco Company (1991 (51) ELT 631 (SC)] = 1991 (1) TMI 136 – SUPREME COURT OF INDIA and CCE Vs. Shital International [MANU/SC/0884/2010) = 2010 (10) TMI 19 – SUPREME COURT OF INDIA. Similar view has been affirmed in the following cases:
i. CIT vs. Rani Tara Devi [2013 (355) ITR 457 = 2013 (3) TMI
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y of selling of goods.
11, The Applicant submits that the dictionary meaning of facilitation is to make easy or easier, make something possible or aiding or helping. Thus, the dictionary meaning of facilitation is very wide and covers processing, storage, transport, advertising, sales promotion etc, all activities as each and every activity aids or smoothens supply of goods. Goods Transport service (9965), Transport support service (9967), advertising and market research service (9983) are separate service classification. If such a wide meaning is adopted, it will render many of these PP service classifications redundant. Thus, the Applicant submits that facilitate supply of goods refers to an activity directly related to the sale.
12. In the instant case, the Applicant and the Service recipient are acting as independent contractors. Moreover, the Applicant and the service recipient have no authority to create nor do they assume any obligation on behalf of each other. The point of di
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“Independent contractor' which has been defined in the Concise Law Dictionary as follows:
“One who, exercising an independent employment, contracts to do a piece of work according to his own methods, and without being subject to his employer's control, except as to the result of the work.
An independent contractor is one Who undertakes to produce a given result but so that in the execution of the work he is not under the order or control of the person for whom he does it, and may use his own discretion in things not specified beforehand.”
15. As highlighted above, the Services Agreement specifically provides a clause that the Parties do not intend to create any principal-agent relationship, Further, the consideration charged by the Applicant is not qua a particular transaction between the service recipients and their customers. Therefore, the services supplied by the Applicant to the service recipients fails to comply with the second limb of the definition of the term “intermediary”
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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”
b. It is pertinent to note that the definition of intermediary under Section 2(13) of the IGST Act is pari materia to the definition provided under the Finance Act 1994. The Education Guide, 2012 issued by the CBEC inter alia provides the various factors that needs to be considered in determining whether a person is an intermediary. The relevant extract is reproduced hereunder:
“Nature and value: An intermediary cannot alter the nature or value of the service, the supply of which he facilitates on behalf of his principal, although the principal may authorize the intermediary to negotiate a different price. Also, the principal must know the exact value at which the service is supplied (or obtained) on his behalf, and any discounts that the intermediary obtains must be passed back to the princi
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ence authorizing him to act on behalf of the provider of the main service!”
19. Para 5.9.6 of the Education Guide, 2012 issued by the CBEC clarifies the scope of the term intermediary. The relevant extract is reproduced hereunder;
“Similarly, persons such as call centres, who provide services to their clients by dealing with the customers of the client on the client's behalf, but actually provided these services on their own account, will not be categorized as intermediaries.”
In the instant case, although the Applicant deals with the service recipients customers, but the same is for the purpose of providing services to the service recipient on its own account. Consequently, the services provided by the Applicant cannot be classified as Intermediary services”.
20. In an identical case as the present situation, GODADDY India Web Services Pvt. Ltd. had filed an Advance Ruling under the Service tax regime [2016 (46) STR 806 (A.A.R.)] = 2016 (3) TMI 355 – AUTHORITY FOR ADVANCE RULINGS.
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ervice, Further, applicant would provide said service as a package and the payment for the entire package would be a consolidated lump sum payment. Applicant submits that in view of these indicators, service provided by them to GoDaddy US is a bundle of services, which is bundled in the normal course of business. This point has not been controverted by the Revenue. We agree with the submissions of the applicant that proposed services are a bundle of services, bundled in normal course of business and not intermediary service.”
21. Applying the above to the present case, while the scope of services provided to the Asahi Kasei group is very wide, the same would fall within the ambit of the term “composite supply” with the marketing services being the principal supply
22. In view of the above, it is amply clear that the services provided by the Applicant cannot be considered as an “Intermediary services”. However, in order to determine the correct classification of the services provided
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rt services and other transaction processing.
Explanation – For the purposes of this clause, the expression infrastructural support services” includes providing office along with office utilities, lounge, reception with competent personnel to handle messages, secretaria services, internet and telecom facilities, pantry and security;”
[Pre-negative List regime]
“Section 65B(49) “support services means infrastructural, operational, administrative, logistic, marketing or any other support of any kind comprising functions that entities carry out in ordinary course of operations themselves but may obtain as services by outsourcing from others for any reason whatsoever and shall include advertisement and promotion, construction or works contract, renting of immovable property, security, testing and analysis;”
[Negative List regime]
24. From the above, it can be construed that marketing services, advertisement and promotion services, customer relationship management, evaluation of prospe
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features so as to assist in determining the nature and scope of the Indian market potential;
b) Assisting the service recipient in the adaptation and implementation of its advertising policy;
c) Assisting the service recipient in conducting sales prospection through participation in industry events such as scientific gatherings, exhibitions, trade shows and the like;
d) Liaising with Customers and potential Customers and to collect their product development plans and strategy and “road-maps”, as well as their product specifications; and reporting the same to the service recipient the information obtained through such interactions;
e) Providing any feedback to the service recipient that would help improve the service recipient's marketing; Facilitating the service recipient in arrangement of discussions and provision of interpretation services and cross culture advice; or the sake of clarity, neither AKI (i.e. the Applicant) nor any of its representatives shall have any authority t
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and maintaining contact with regulatory agencies) and reporting the same to the service recipient; and
j) Any other assistance in the context of the above, regarding service recipient's marketing activities that may be reasonably requested by service recipient after the effective date in writing to AKI.”
It may however be noted that the scope of service for the marketing services agreement with APNA do not include the points (c), (g) and (i) as mentioned above
Statement containing the applicant's interpretation of law
As in case of Question No. 2 above
QUESTION NO. 3
Question on which advance ruling is required
Whether the services provided by the Applicant is an export of services as defined under Section 2(6) of the Integrated Goods and Services Tax Act 2017?
Statement of facts having a bearing on the question
The Applicant receives payment in freely convertible foreign exchange i.e. Japanese Yen / United States Dollar
Statement containing the applicant's interpretation of
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ace where the person has obtained registration, the location of the supplier shall be such place of business. In the instant case, the Applicant is providing service from Maharashtra for which it has obtained GST registration. Consequently, the location of the supplier of service shall be Maharashtra i.e. in India.
b. Condition II – Recipient of service is located outside India
The term “location of the recipient of services” has been defined under section 2(14) of the IGST Act. As per the said definition, if a supply has been received from a registered place of business or registered fixed establishment, the location of the recipient shall be the respective place of business or fixed establishment. However, in other cases, the usual place of residence of the service recipient shall be the location of the service recipient. In the instant case, the Asahi Kasei group is not registered in India and therefore, their registered place of business will be their registered address (i.e. out
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le foreign exchange
As mentioned in the foregoing paragraphs, the consideration charged by the Applicant is in convertible foreign exchange i.e. Japanese Yen / United States Dollar.
e. Condition V – Supplier of service and recipient of service are not merely establishment of distinct person
Explanation 1 to Section 8 inter alia provides that where a person has an establishment in India and any other establishment outside India, then such establishments shall be treated as establishments of different legal persons. The term person has been defined to include a Company. In the instant case, the service recipient i.e. Asahi Kasei group is not an establishment formed by the Applicant and consequently, it cannot be treated as an establishment of a distinct person.
3. In view of the above, it can be construed that the Applicant fulfils all the conditions for treating the supply of services as an export of services in terms of Section (6) of the IGST Act. Therefore, the answer to Question
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3) Whether the service provided by the Applicant is an export of services as defined under Section 216) of the Integrated Goods and Service Tax Act 2017?
Statement of facts having bearing on the question (1):
Asahi Kasei India Pvt. Ltd., (hereinafter referred to as the “Applicant') has entered into Service Agreement dated 1st March, 2013 with Asahi Kasei Corporation, a Japanese Corporation. However, the address mentioned in the agreement is (The Capital, Office No.801-C, 8th floor, Plot No C70, G-Block, Bandra Kurla Complex, Bandra (East), Mumbai-400051, which is different from Advance Ruling Application of the applicant.
The scope of the services provided by the Applicant under Service Agreement with Asahi Kasei Corporation, Japan (dated 01 March 2013) as amended on 05 January 2017 are highlighted at Clauses 4 to 8 of the Agreement. The relevant extract of the agreement is reproduced hereunder:
“4. Party B (i.e. the Applicant) agrees to conduct from time to time, as and when requ
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m time to time, as and when representatives of Party A, or its related business circles or customers visit the Territory and Party A so requests, Party B shall provide necessary assistance in liasoning and coordinating activities (including interpreting) to such representatives.
7. From time to time, as and when requested by Party A, Party B shall make market surveys of the Products in the Territory and report the results thereof to Party A.
8. Party B shall perform services, as directed by Party A, resulting from the assignments pursuant to paragraph 4 through 7 of this Agreement, including, but not limited to, those services with regard to finance, accounting, and patent and legal matters.”
As per Clause 9 of the Agreement, Service consideration received by the Applicant is the direct cost+ apportioned overhead expenses+10% margin +applicable taxes.
From perusal of the above extract of the agreement it is seen that the Applicant is engaged in the activities for the party A, viz.
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gal matters.
PRAYER
In view of the above, it can be said that
i) The research on the matters related to functions of holding company such as corporate accounting, corporate finance, corporate personnel and labor relations, corporate research and development, market surveys appears to come under the category of 'Market Research services' under Heading No.998371;
ii) Research on the matter of corporate intellectual property appears to come under 'Legal documentation and certification services concerning patents, copyrights and other intellectual property rights services' which fall under Heading No.998213
iii) The economic, industrial and technical information on the products falling under the category of the Products and their markets, trends and outlook together with similar information concerning such other industries, appears to fall under 'Original compilations of facts or information' which fall under Heading No.998394' / Business Support Service(9985).
iv) Providing necessar
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ned in the agreement is 'The Capital, Office No. 801-C, 8th floor, Plot No.C70, G-Block, Bandra Kurla Complex, Bandra (East), Mumbai-400051, which is different from Advance Ruling Application of the applicant.
The scope of the services provided by the Applicant under Marketing Services Agreement with Bioprocess Division of Asahi Kasei Medical Co. Ltd., are highlighted at Article 2 of the Agreement. The relevant extract of the agreement is reproduced hereunder: Bioprocess Division of Asahi Kasei Medical Co. Ltd. referred to as “AM” in agreement dated 01 December 2012.
The services shall comprise the following activities, all of which are described with respect to the Products in the Territory, and all only to be conducted at and under the explicit direction of AM.
a) Conducting market surveys and providing the AM with information on Indian market trends and features so as to assist in determining the nature and scope of the Indian market potential;
b) Assisting AM in the adaptation
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mers visiting the territory with such assistance as may be reasonably requested by AM, including but not limited to providing information, guide, escort and interpreting services during Customers visits; for the sake of clarity, the premises of AKI (applicant) will not be the premises of AM and the same shall not be made available to employees or other personnel of AM who may visit India;
h) Providing information on products and its functioning or similar such services to AM's customers and notifying AM of any Customer complaints;
i) Monitoring regulatory developments (including, where possible, establishing and maintaining contact with regulatory agencies) and reporting on these to AM; and
j) Any other assistance in the context of the above, regarding AM's marketing activities that may be reasonably requested by AM after the Effective Date in writing to AKI(Applicant).”
From perusal of the extract of the above agreement dated 01.12.2012 it is seen that the Applicant is engaged
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negotiations on behalf of AM, connecting Customers with AM representatives for the purpose of obtaining orders and establishing and maintaining close commercial relationships between AM and customers, providing staff of AM or its customers visiting the territory with such assistance as may be reasonably requested by AM, including but not limited to providing information, guide, escort and interpreting services during Customers visits; for the sake of clarity, the premises of AKI(applicant) will not be the premises of AM and the same shall not be made available to employees or other personnel of AM who may visit India, providing information on products and its functioning or similar such services to AM's customers and notifying AM of any Customer complaints, monitoring regulatory developments (including, where possible, establishing and maintaining contact with regulatory agencies) and reporting on these to AM; and any other assistance in the context of the above, regarding AM's marketi
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and “road-maps”, as well as their product specifications, and reporting to AM abroad, information obtained through such interactions appears to be connected to the services at Para 10 above as principal supplies, therefore in terms of Section 8 of the Central Goods and Service Tax Act, 2017 read with Section 20 of the Integra ted Goods and Service Tax Act, 2017. Therefore the said service 'Original compilations of facts or information' which individually fall under Heading No.998394' / Business Support Service(9985) will be supplied as Composite Supply and in terms of Section of the IGST Act, 2017.
v) Providing any feedback to AM that would help improve AM's marketing; Facilitating AM in arrangement of discussions and provision of interpretation services and cross culture advice; for the sake of clarity, neither AKI (i.e. the Applicant) nor any of its representatives shall have any authority to conduct negotiations on behalf of AM, appears to fall under 'Other professional, technical
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his the service category is not clearly mentioned, hence, Advance Ruling should not be given for this services;
ix) Monitoring regulatory developments (including, where possible, establishing and maintaining contact with regulatory agencies) and reporting on these to AM, appears to fall under 'Other Legal services nowhere else classified' under Heading No.998216; and
x) Any other assistance in the context of the above, regarding AM's marketing activities that may be reasonably requested by AM after the Effective Date in writing to AKI(Applicant). In this, the service category is not clearly mentioned, hence, Advance Ruling should not be given for this services;
Statement of facts having bearing on the question (3):
The Term “export of services” as defined under Section 2(6) of the IGST Act and the term “intermediary” as defined under Section 2(13) of the IGST Act. The relevant extract is set out hereunder:
“(6) export of services” means the supply of any service when
(i) The s
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GST and providing the service from Maharashtra, India. Hence fulfilling the first condition with reference to term “location of the supplier of service” is located in India, as defined under Section 2(15) of the IGST Act.
b. Condition-II- Recipient of service is located outside India.
In the instant case the service recipient M/s. Asahi Kasei Corporation (Service Agreement) and Asahi Kasei Medical Co. Ltd (Marketing Service Agreement) is not registered in India and therefore their registered place of business will be their registered address (i.e outside India). Hence fulfilling the first condition with reference to term “The recipient of service is located outside India” as defined under Section 2(14) of the IGST Act.
C. Condition-III place of supply of Service is outside India.
The services provided by the Applicant is in nature of different services in the above two agreement viz, in Service agreement dated 1st March, 2013, the following services appears to be applicable
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' under Heading No.998216;
The place of supply in the instant case is determined as per general rule i.e Section 13(2) of IGST Act where the location of the recipient of services shall be the place of supply of services and Section 13(3) to 13(13) where place of supply shall be the location where services are actually performed. In the present case, the place of supply of Service regarding the two agreements, the Details are as follows:
In Service agreement dated 1st March, 2013,
1. The research on the matters related to functions of holding company such as corporate accounting, corporate finance, corporate personnel and labor relations, corporate research and development, market surveys appears to come under the category of 'Market Research services' under Heading No.998371, will be covered under Section 13(2) of the IGST Act, 2017 and place of supply of service or shall be the location of the recipient of services;
2. Research on the matter of corporate intellectual property appe
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es which fall under Heading No.99859, will be covered under Section 13(3)(b) interalia Section 13(4) of the IGST Act, 2017 and the place of supply of service shall be the location where the services are actually performed.
5. Regarding Para 8 of the agreement, it is felt that Advance Ruling cannot be given because without proper and full facts. In this Para, conditions like 'but not limited to' is mentioned, which does not give a clear picture of what services it pertains to. Hence, Advance Ruling or for Para 8 cannot be given.
6. Regarding Para 9 of the agreement, it is subject to separate treatment to any intermediary activities where place of provision of service is governed by Section 13(8) of the CGST Act, 2017.
In Marketing Service agreement dated 01.12.2012,
7. Conducting market surveys and providing the AM with the information on Indian market trends and features so as to assist in determining the nature and scope of the Indian market potential appears to fall under 'Market
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atives for the purpose of obtaining orders and establishing and maintaining close commercial relationships between AM and customers, will be covered under Section 13(8)(b) of the IGST Act,2017 as 'intermediary services' and the place of supply of service shall be the location where the services are actually performed, appears to fall under 'business support services' under Heading No.99859.;
11. Liaising with Customers and potential customers and to collect their product development plans and strategy and “road-maps”, as well as their product specifications, and reporting to AM abroad, information obtained through such interactions appears to be connected to the services at Para 10 above as principal supplies, therefore in terms of Section 8 of the Central Goods and Service Tax Act, 2017 read with Section 20 of the Integrated Goods and Service Tax Act, 2017, the said service 'Original compilations of facts or information' which will individually fall under Heading No.998394', / Busine
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ons on behalf of AM, appears to fall under 'Other professional, technical and business services nowhere else classified' under Heading No.998399, will be covered under Section 13(2) of the IGST Act, 2017 and place of supply of service or shall be the location of the recipient of services;
14. Providing staff of AM or its customers visiting the territory with such assistance as may be reasonably requested by AM, including but not limited to providing information, guide, escort and interpreting services during Customers visits; for the sake of clarity, the premises of AKI (applicant) will not be the premises of AM and the premises of AKI(applicant) in India shall not be made available to employees or other personnel of AM who may visit India, will be covered under Section 13(3)(b) interalia Section 13(4) of the IGST Act, 2017 and the place of supply of service shall be the location where the services are actually performed.
15. Providing information on products and its functioning or s
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ment in freely convertible foreign exchange i.e. Japanese Yen / United States Dollar.
e. Condition V – Supplier of service and recipient of service are not merely establishment of distinct person.
Explanation 1 to Section 8 of IGST Act provides that -For the purposes of this Act, where a person has, –
(i) an establishment in India and any other establishment outside India;
(ii) an establishment in a State or Union territory and any other establishment outside that State or Union territory; or
(iii) an establishment in a state or Union territory and any other establishment being a business vertical registered within that State or Union territory, then such establishments shall be treated as establishments of distinct persons.
PRAYER
In view of the above, it can be construed that in some services (as mentioned above) the Applicant fulfils all the conditions for treating the supply of services as an export of services in terms of Section (6) of IGST Act and in some services (as
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the facts of the case. The issue put before us is in respect of a future transaction which would be on the lines thus –
The Applicant provides sales promotion and marketing support to Asahi Kasei group. For this, the Applicant has entered in to a Services Agreement dated 01 March 2013 with Asahi Japan and Marketing Services Agreement with various group companies of Asahi Kasei group. The scope of work under the Agreement is broadly stated below:
a. Collecting and analyzing information i.e. market analysis and supporting Asahi Kasei group in getting new business;
b. Providing marketing & administration support and back-office support (including accounting Support);
c. Networking i.e. co-ordinate with the government authorities and relevant universities to join relevant trade associations;
d. Supporting sales activity of Asahi Kasei group.
On this set of facts applicant has raised questions which are as under:-
Que 1: Whether the service supplied by the Applicant under the Service
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B agrees to provide Party A from time to time, as and when requested by Party A, with economic, industrial and technical information on the products falling under the category of the Products and their markets, trends and outlook together with similar information concerning such other industries in the Territory (i.e. India or any other mutually agreed territory) as Party A may from time to time request. In the event Party A should require more detailed information than that so provided by Party B, Party B shall exert its best efforts to obtain such further or more detailed information.
6. At such time and from time to time, as and when representatives of Party A, or its related business circles or customers visit the Territory and Party A so requests, Party B shall provide necessary assistance in liasoning and coordinating activities (including interpreting) to such representatives.
7. From time to time, as and when requested by Party A, Party B shall make market surveys of the P
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vices or both or securities on his own account
The concept of intermediary under the GST Act is substantially identical to the concept of intermediary under the erst while service tax regime. This concept has been explained in the Education Guide issued by CBEC in the year 2012 as under:
In order to determine whether a person is acting as an intermediary or not, following factors need to be considered:
Nature and value: An intermediary cannot alter the nature or value of the service, the supply of which he facilitates on behalf of his principal, although the principal may authorize the intermediary to negotiate a different price. Also, the principal must know the exact value at which the service is supplied (or obtained) on his behalf, and any discounts that the intermediary obtains must be passed back to the principal.
Separation of value: The value of an intermediary's service is invariably identifiable from the main supply of service that he is arranging. It can be based on an a
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possible situations here- one when he acts on his own account, and the other, when he acts as an intermediary.
When he acts on his own account (say, for an export shipment)
A freight forwarder provides domestic transportation within taxable territory (say, from the exporter's factory located in Pune to Mumbai port) as well as international freight service (say, from Mumbai port to the international destination), under a single contract, on his own account (i.e, he buys-in and sells freight transport as a principal), and charges a consolidated amount to the exporter. This is a service of transportation of goods for which the place of supply is the destination of goods. Since the destination of goods is outside taxable territory, this service will not attract service tax. Here, it is presumed that ancillary freight services (i.e. services ancillary to transportation- loading, unloading, handling etc.) are “bundled” with the principal service owing to a single contract or a single pric
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he matters related to the functions of the holding company, such as corporate accounting, corporate finance, corporate personnel and labor relations, corporate research and development, quality assurance and corporate intellectual property, and provide Party A with its report of the research thereon.
2. To provide with economic, industrial and technical information on the products falling under the category of the Products and their markets, trends and outlook together with similar information concerning such other industries in the Territory.
3 To provide necessary assistance in liasoning and coordinating activities (including interpreting) to such representatives.
4. To make market surveys of the Products in the Territory and report the results thereof to Party A.
5. All other related services pertaining to above services including, but not limited to, those services with regard to finance, accounting, and patent and legal matters.
We clearly find from the scrutiny of clause 15
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'.
As a corollary of this finding, we shall now move on to decide whether the services supplied by the applicant constitute composite supply and categories as 'support services'?
Applicant has strongly relied on the definition of composite supply as defined under section 2(30) of the GST, the Education Guide-2012 and the decision of ARA in case of Godday India Web Services Pvt. Ltd. [2016 (46) 806 (AAR) = 2016 (3) TMI 355 – AUTHORITY FOR ADVANCE RULINGS to submits that the supply of services as evidenced by the Services Agreement constitute composite supply with the Marketing Services as principal supply. The expression 'Composite Supply' has been defined under GST Act, as below –
(80) “composite 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 pr
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upon the normal or frequent practices followed in the area of business to which services relate. Such normal and frequent practices adopted in a business can be ascertained from several indicators some of which are listed below –
The perception of the consumer or the service receiver. If large number of service receivers of such bundle of services reasonably expect such services to be provided as a package then such a package could be treated as naturally bundled in the ordinary course of business.
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.
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 that one of the services is the main service and the other services combined with such servi
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rally bundled in the ordinary course of business. Each case has to be individually examined in the backdrop of several factors some of which are outlined above.
In the present case from the Services Agreement we find that applicant proposes to provide two different categories of services which are as below:
A) Research on the functioning of the company : Services pertaining to research on the matters related to the functions of the holding company such as – corporate accounting, corporate finance, corporate personnel and labour relations, corporate research and development, quality assurance and corporate intellectual property, and provide Party A with its report of the research thereon
B) Information on the markets in the territory : Services pertaining to information on the markets in the territory includes –
i) Economic, industrial and technical information on the products falling under the category of the Products and their markets, trends and outlook together with similar inf
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–
i) Economic, industrial and technical information on the products falling under the category of the Products and their markets, trends and outlook together with similar information concerning such other industries in the Territory.
ii) To provide necessary assistance in business activities (including interpreting) to such representatives.
iii) To undertake market surveys of the Products in the Territory and report the results thereof to Party
iv) Ancillary services to all above services, including, but not limited to, those services with regard to finance, accounting, and patent and legal matters.”
From the nature of services it is evident that these services are not interdependent but could be provided as standalone services. In as much as we can say that applicant proposes to provide two distinct category of supplies. And as such services provided by this agreement can not constitute 'composite supply' as defined under the GST Act. However, we observe that services menti
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services to determine the most appropriate service tariff code:
Sr.no.
Chapter, section, heading or group
Service code (tariff)
Service description
296
Heading 9983
Other professional, technical and business services
297
Group 99831
Management consulting and management services; information technology services
298
998311
Management consulting and management services including financial, strategic, human resources, marketing, operations and supply chain management
299
998312
Business consulting services including public relations services
300
998313
Information technology consulting and support services
301
998314
Information technology design and development services
302
998315
Hosting and information technology infrastructure provisioning services
303
998316
Information technology infrastructure and network management services
304
998319
Other information technology serv ices n
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research services
347
998372
Public opinion polling services
Sr.no.
Chapter, section, heading or group
Service code (tariff)
Service description
444
Group 99859
Other support services
445
998591
Credit reporting and rating services
446
998592
Collection agency services
447
998593
Telephone-based support services
448
998594
Combined office administrative services
449
998595
Specialised office support services such as duplicating services, mailing services, document preparation and the like
450
998596
Events, exhibitions, conventions and trade shows or organisation and assistance services
451
998597
Landscape care and maintenance services
452
998598
Other information services nowhere else classified
453
998599
Other support services nowhere else classified
From the detailed examination of above table we find that the services provided by the applicant in
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services to all above services, including, but not limited to, those services with regard to finance, accounting, and patent and legal matters would fall under service code tariff 99837 with service description market research services.
Question: – 2. Whether the service supplied by the Applicant under the Marketing Services Agreement dated 1 December 2012 constitute a supply of “Support services” falling under HSN code 9985 or “Intermediary service” classifiable under HSN code 9961 / 9962?
Applicant entered into 'Marketing Service Agreement' dated 1st December 2012 with Bioprocess Division of Asahi Kasei Medical Co. Japan (in short AM). As per the preamble the services are proposed to be provided with the sole intention to develop/ argument sales of bioprocess consumables and for that purpose AM desires to secure market support services offered by the Applicant. Applicant proposes to provide services which shall comprise of following activities.
“a) Conducting market surveys and pr
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(ire, the Applicant) nor any of its representatives shall have any authority to conduct negotiations on behalf of the service recipient;
f) Connecting Customers with representatives of the service recipient for the purpose of obtaining orders and establishing and maintaining close commercial relationships between service recipient and customers;
g) Providing staff of the service recipient or its customers visiting the territory with such assistance as may be reasonably requested by them, including but not limited to providing information, guide, escort and interpreting services during Customers visits; for the sake of clarity, the premises of AKI will not be the premises of the service recipient and the same shall not be made available to employees or other personnel of service recipient who may visit India;
h) Providing information on products and its functioning or similar such services to service recipient's customers and notifying service recipient of any consumer complaints;
i
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t applicant shall not carry out any act that will be binding on AM, such as conclusion of contracts, acceptance of sales order, invoicing, determination of sales prices, rebates or discounts, resolution of customers complaints or settlement or disputes with the customers. On this factual matrix we discuss whether the provision of services constitute 'intermediary' as defined under section 2(16) of IGST Act. The definition is already reproduced in preceding para of this ruling.
The concept of intermediary under the GST Act is substantially identical to the concept of intermediary under the erst while service tax regime. This concept has been explained in the Education Guide issued by CBEC in the year 2012 which we have already reproduced in this ruling.
We find from the scrutiny of Marketing Services Agreement that the relationship between the parties is that of independent contractors meaning that the agreement does not intend to create relationship of principal and agent. The applic
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= 2016 (3) TMI 355 – AUTHORITY FOR ADVANCE RULINGS to submit that the supply of services as evidenced by the Marketing Services Agreement Constitute composite supply with Marketing Services as principal supply. The expression 'Composite Supply' has been defined under GST Act, which we have already reproduced in the preceding paras.
Under the GST Act, a composite supply would mean a supply 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. We find that applicant proposes more than two taxable supplies to the recipient. In respect of supply which consists of more than two taxable supplies and to fall within the ambit of composite supply, it will be necessary to determine whether a particular supply is naturally bundled in the ordinary course of business and what constitutes principal supply. The co
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otential for recipient of services.
With regards to the classification of services under the rate notification 11/2017 as amended from time to time, and the annexure of classification of services we find following entries that are relevant for the present purpose.
Sr.no.
Chapter, section, heading or group
Service code (tariff)
Service description
345
Group 99837
Market research and public opinion polling services
346
998371
Market research services
347
998372
Public opinion polling services
From the perusal of above table and the finding by us as above, we hold that the services the applicant proposes to provide would fall under Group 99837 as Market Research Services.
Question: – 3. Whether the services provided by the Applicant is an export of services as defined under Section 2(6) of the Integrated Goods and Services Tax Act 2017?
The expression export of services has been defined under the GST Act as below:
“(6) export of services” means th
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of the recipient of services i.e. AM Japan, which is outside India. As the applicant satisfies all the ingredients of 'export of services' the service provided by the 'Marketing Services Agreement' would qualify as an export of taxable service.
05. In view of the extensive deliberations as held hereinabove, we pass an order as follows:
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-35/2018-19/B-108
Mumbai, dt. 05/09/2018
For reasons as discussed in the body of the order, the questions are answered thus
Question:-1. Whether the service supplied by the Applicant under the Service Agreement dated 1 March 2013 constitute a supply of “Support services” falling under HSN code 9985 “Intermediary service” classifiable under HSN code 9961 /9962?
Answer: (i) The services provided by the applicant in the nature of Research on the matter related to functioning of the holding of company such as
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In Re : G.N. Chemicals
GST
2018 (12) TMI 142 – AUTHORITY FOR ADVANCE RULING – CHHATTISGARH – 2018 (18) G. S. T. L. 825 (A. A. R. – GST)
AUTHORITY FOR ADVANCE RULING – CHHATTISGARH – AAR
Dated:- 5-9-2018
STC/AAR/04/2018
GST
Shri S.K. Buxy and Rajesh Kumar Singh, Members
ORDER
Proceedings : The applicant M/s G.N. Chemicals, 27/13, Nehru Nagar-West, Bhilai, (C.G.) GSTIN 22AAFFG5162J1ZJ has filed the application U/s 97 of the Chhattisgarh Goods & Services Tax Act, 2017 requesting advance ruling as regards levy of GST Rate applicable in case of “Neem Seed”, classified under HSN Code 1211, placed both under 0% GST Rate and 5% CST Rate, on the condition that “All goods of seed quality” are classifiable under 0% GST Rate, whereas “All goods other than Seed quality” shall be classified under 5% GST Rate. The applicant is of the opinion that Neem Seed is classifiable under 0% GST Rate.
2. Facts of the case :-
I. M/s G.N. Chemicals, 27/13, Nehru Nagar-West, Bhilai,
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ommodities for Customs and Central Excise, and now for GST classification as well.
Neem Seed is categorized under HSN Code 12119014 under Indian Trade Classification (HS) – 2017.
Description of the Chapter 12 of ITC – HS Code reads as below : –
“OIL SEEDS AND OLEAGINOUS FRUITS; MISCELLANEOUS GRAINS, SEEDS AND FRLIIT; INDUSTRIAL OR MEDICINAL PLANTS; STRAW AND FODDER”
(iii) that, on carefully reading the Chapter description the apt placement of semi-colons and commas amply explains the types of goods & application of such goods covered by this classification under chapter 12 and the same is as below :-
Type
Meaning
Oil Seed
Seed that yields Oil
Oleaginous Fruit
Oily, or Rich in Oil, or Covered with Oil, or Producing Oil
An oleaginous fruit is the part of a plant that is used to produce oil. It can be a fruit (for example olives), seed (for example sesame) or nut (for example walnuts)
Grains
Grain is a cereal crop that has been harvested and is used for food.
Seed
the
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sowing, they would have placed Neem seed in HSN code 1209 (which is placed in Nil Rate classification), however, they have placed neem seed in HSN Code 1211 – the Heading title of which explicitly confirms the application of seeds to be not just for sowing purpose.
(vi) thus, Neem Seed is to be classified under 12119014 irrespective of whether Neem Seed is used for sowing or for Industrial of medicinal purpose.
(vii) Now HSN Code 1211 is placed under Nil GST Rate category as well as 5% GST Rate category with the distinction as below :-
Chapter 12
All goods of Seed quality
All goods other than seed quality
Neem Seed
1211
1211
CST Rate
0%
5%
“The titles of section and chapter are provided for ease of reference only; for legal purposes, classification shall be determined according to the terms of the heading and any relative section or chapter notes and, provided such heading or notes do not otherwise require, according to the provisions hereinafter contained.&#
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he applicable general interpretational rules have been humbly submitted. Therefore it was their contention that Neem Seed (in all forms) to be classified under 0% GST Tax slab.
5. Thus we find that M/s. G.N. Chemicals, 27/13 Nehru Nagar West, Bhilai, (C.G,) 490020, GSTIN 22AAFFG5162J1ZJ, the applicant is seeking clarity as regards the applicable rates for payment of GST on the aforesaid commodity that is Neem Seed, viz. whether the applicable rates should be @ 0% or 5%.
6. The legal position, Analysis and Discussion :-
6.1 The provisions for implementing the CGST Act and CGGST Act, 2017 are similar. Now we sequentially discuss the provisions that are applicable in the present case.
6.2 The following facts have been mentioned in the report received from the jurisdictional Office of the applicant i.e. O/o Assistant Commissioner, Circle-2 Durg, with regard to the advance ruling application filed by the applicant :-
This report is with reference to the applicat
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Ayurveda practitioners to be anthelmintic, antifungal, antidiabetic, antibacterial, anti viral, contraceptive and sedative. Neem is a key ingredient in Non-Pesticidal Management (NPM), providing a natural alternative to synthetic pesticides.
It goes beyond doubt that Neem is widely used in perfumery, in pharmacy or for insecticidal, fungicidal or similar purpose. Therefore it falls in HSN Code 1211 which contains “Plants and parts of plants (including seed and fruits), of a kind used primarily in perfumery in pharmacy or for insecticidal, fungicidal or similar purpose, frozen or dried, whether or not cut, crushed or powdered” and the rate of tax on items falling under this heading is 5% that is 2.5% CGST 2.5% SGST.
However, there are two entries in HSN code 1211, one is of 0% GST and another is of 5% GST. Both of these entries are extracted here for the sake of making matter more clear. These are as follows :
HSN
DESCRIPTION
RATE OF TAX
1211
Plants and parts of plants (
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ative term and means the degree of excellence when compared to an acceptable standard. The seeds having required standards of purity, germination and other attributes are referred to as quality seeds- Thus this chapter itself makes a very wide distinction at the outset between seeds per se and seed quality at the outset.
The applicant's other queries are about rate of tax on organic manure made up of Neem cannot be answered here due to lack of disclosure of procedure involved in making of manure. Unless it is determined that the manure made by the applicant is organic, it's needless to give opinion on it.
6.3 To sum up in the opinion of jurisdictional officer following would be the answer of the applicant's queries :-
(i) Trading of Neem Seed in “fresh or chilled” form would attract 0% of GST, whereas when traded as “frozen or dried” form would attract 5% GST.
(ii) Trading of Neem Seed powder would also attract 5% of GST.
(iii) Neem oil ex
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wing) includes all types of Neem Seed, whether for sowing or other uses and should be approved under tax free category.
6.6 The applicant has not come up with any evidence or logical explanation to substantiate their above contention. It has been unambiguously clarified in each entry mentioned in the schedules, issued under State and Central GST Acts as regard the applicable tax rate on any goods/ service along with the conditions and circumstances under which such goods/service shall be classified as tax free or taxable under specific tax slab. The following two pre-conditions need fulfillment for categorizing the neem seed so supplied by the applicant as tax free, as stipulated under HSN code 1211 –
HSN
DESCRIPTION
RATE OF TAX
1211
Plants and parts of plants (including seed and fruits), of a kind used primarily in perfumery, in pharmacy or for insecticidal, fungicidal or similar purpose, frozen or dried, whether or not cut, crushed or powdered.
CGST 2.5%
SGST 2.5%
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on 5 to Section 9 clearly stipulate the provisions for authentication of seed quality on the basis of which any seed would be defined as 'tax free seed for sowing.'
6.8 Seeds are the foundation of agriculture. Seed quality plays an important role in the production of agronomic and horticultural crops. Characteristics such as trueness to variety, germination percentage, purity, vigour, and appearance are important to farmers planting crops. Seed quality is the degree of excellence in regard to the characteristics referred to above that determines the seed quality. If the seed lot possesses high genetic purity and high germination percentage and is inter alia free from diseases, it is categorized as possessing high quality. Generally the standards fixed for certified seeds are considered of having quality standards. It implies that if a seed lot meets the certification standards, it is a good quality seed and if does not meet the certification standards, it is obviously not of s
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etch of imagination be categorized as those attracting tax @ 0%.
6.10 The applicant during the course of hearing stated that they would make neem oil from the kernel of neem which they would acquire from the collection of dry neem fruits or purchase of the same and they would also sell organic manure made from the De-Oiled Cake and husk of Neem. This clearly goes on to establish that the said goods to be supplied by the applicant does not fulfill the conditions mentioned under HSN code 1209 and 1211 neither in the 'specific form' nor 'specific use', as stipulated under GST Act to be categorized as attracting tax @ 0%.
7. In view of the deliberations and discussions as above, we pass the following order :-
ORDER
8. The ruling so sought by the Applicant is accordingly answered as under :-
In terms of Notification No. 1/2017-State Tax (Rate) No. F-10-43/2017/CT/V(69), Naya Raipur, Dated 28-6-2017, Serial No. 73, Chapter 1211 :
(i) Supply of neem seeds in froze
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M/s. A.M.S. ENTERPRISES Versus COMMISSIONER OF CENTRAL SERVICE TAX, CHENNAI [PRESENTLY KNOWN AS “THE COMMISSIONER OF GST & CENTRAL EXCISE, CHENNAI SOUTH COMMISSIONERATE”]
Service Tax
2018 (11) TMI 1221 – CESTAT CHENNAI – TMI
CESTAT CHENNAI – AT
Dated:- 5-9-2018
ST/MISC/4111/2017 and ST/561/2011 – FINAL ORDER NO. 42344/2018
Service Tax
Smt. Sulekha Beevi C.S, Member (Judicial) And Shri Madhu Mohan Damodhar, Member (Technical)
For the Appellant Shri J. Shankar Raman, Adv.
For the Respondent Ms. T. Usha Devi, DC (AR)
ORDER
Per Bench:
The appellants are a partnership concern engaged in the business of Man-power Supply Service to various corporate customers. On gathering intelligence, that they are evading payment of service tax, the officers of DGCEI, took up investigation. On verification of records, it was noticed that the appellants collected service tax on Man-power Supply Service but failed to remit the same to Government account. Accordingly, show-cause
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alleging suppression of facts with intent to evade payment of tax for the period from 16.06.2005 to 31.03.2008. Further that the appellants were under confusion as to whether the amount of salary, ESI, PF etc., to be paid to the workers are subject to levy of service tax. On belief, that the demand raised including these amounts in the total taxable value is not subject to levy of tax, the appellants had contested the demand. They had also contested the demand on limitation before the authorities below. However, the Commissioner confirmed the demand and imposed equal penalty under section 78 of the Finance Act, 1994. Since there was a letter received by appellants to the DGCEI officials on 15.09.2006 submitting the necessary documents, the appellant's activity was well within the knowledge of the officials at least from 15.09.2006 onwards. Hence, during the period from 15.09.2006 to 31.03.2008 the extended period cannot be invoked. To support this contention, he placed reliance on
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axes from their client etc. The details along with such letter pertain to earlier period i.e., 2003-04 and 2004-05. For the subsequent period, the appellants have not filed periodical returns. The appellants have filed details of charges collected on 29.07.2008 and 06.11.2008. They requested for further time vide letter date 17.02.2009. The said letter having been given to DGCEI during the investigation proceedings, it cannot be said that the department was put to knowledge and, therefore, there is no suppression on the part of appellants. The extended period invoked as well as penalty imposed are correct and proper.
4. Heard both sides.
5. The learned counsel has contested only on the ground of limitation and the penalties imposed. To support the ground of limitation, he has relied upon the letter dated 15.09.2006 issued by the appellants to DGCEI. The said letter is seen at page 143 of appeal paper book. On perusal of the said letter, it is very much clear that the appellants have
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endered by them under Man-power Supply service, the invocation of extended period after 15.09.2006 cannot sustain. In identical set of facts, the Hon'ble Jurisdictional High Court in the case of M/s. V.N.K. Menon & Co., Vs CESTAT, Chennai reported in 2015 (323) E.L.T.524 (Mad.) has upheld the decision of Tribunal which set aside the demand after the date when department came to know about the details. The relevant portion is reproduced as under:
“8. On a careful consideration of the entire gamut of facts, the answer to the question of law raised by the assessee is found in Para-2 of the order of the Tribunal itself. It has been held by the Tribunal that there is a clear case of suppression for invocation of extended period of limitation for the period prior to August, 1996, as the activities of the appellant/assessee came to light subsequent to an investigation by the Department. However, insofar as the period post August, 1996, on the plea of suppression, the Tribunal was correct
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warranting interference with the well considered finding of the Tribunal.”
6. From the above discussions, we are of the considered opinion that the demand for the period 15.09.2006 to 31.03.2008 cannot sustain and requires to be set aside, which we hereby do. The appeal partly succeeds on the ground of limitation. However, we find that the ingredients of suppression are very much present prior to 15.09.2006. Only pursuant to the investigation conducted not only with appellants but also with many of their clients like M/s. SPIC, M/s. Raddison GRT, M/s. Aircel, etc., did the fact of collection of service tax and the evasion come to light. Discernible, these facts were suppressed from the Department till the investigation. This being so, not only is the extended period invocable up to 15.09.2006 and demand in Annexure-A of the notice sustainable with interest up to that date but the penalty equal to the amount of such revised tax liability is also imposable. No interference is also calle
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