Goods and Services Tax

reversal of GST ITC on Sale of MEIS/SEIS at nil rate under GST
Query (Issue) Started By: – SHAHID HASHMI Dated:- 22-10-2018 Last Reply Date:- 24-10-2018 Goods and Services Tax – GST
Got 1 Reply
GST
Sir, We are manufacturer and exporter of Wires & Cables. We are selling our products in domestic market as well as also exporting its outside India. We are getting MEIS Script. Now we are selling the MEIS Script in domestic market. Earlier there was IGST 12% /5%. As per recent Notification , Sales of script is come under exempted supply under Chapter heading 4907.
My queries are as follows:
(i) Whether at the time of supply of MEIS as goods covered under 4907 as exempt supply, is it fulfill the provisions of section 17(2) of the ac

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Is Government SEZ Authority required to deducts TDS
Query (Issue) Started By: – CASeetharaman KC Dated:- 22-10-2018 Last Reply Date:- 24-10-2018 Goods and Services Tax – GST
Got 5 Replies
GST
Is a Government SEZ Authority formed by Act of parliament required to deduct TDS or would it be excluded under the proviso to Section 51 "Provided that no deduction shall be made if the location of the supplier and the place of supply is in a State or Union territory which is different from the State or as the case may be, Union territory of registration of the recipient."
Reply By DR.MARIAPPAN GOVINDARAJAN:
The Reply:
In my view it is not required.
Reply By CASeetharaman KC:
The Reply:
Sir I subscribe to your view and wish it is correct but there are some areas which may be looked at
1. CGST Act Section 51 read with Section 20 of IGST Act TDS would be applicable to both intra and inter state transactions
2. The proviso says the the no deduction is required if location

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S is to be deducted as IGST Tax.
The fliers issued by the Board also clarifies the same and relevant portion is reproduced below:-
“Registration of TDS deductors: A TDS deductor has to compulsorily register without any threshold limit. The deductor has a privilege of obtaining registration under GST without having required to obtain PAN. He can obtain registration using his Tax Deduction and Collection Account Number (TAN) issued under the Income Tax Act,1961.
……..This can be explained in the following situations.
a) Supplier, place of supply and recipient are in the same state. It would be intra-state supply and TDS (Central plus State tax) shall be deducted. It would be possible for the supplier (i.e. the deductee) to take credit of TDS in his electronic cash ledger.
b) Supplier as well as place of supply are in different states. In such cases, integrated tax would be levied. TDS to be deducted would be TDS (Integrated tax) and it would be possible for the supplier (i.e. the

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me can be taken by the local supplier to pay CGST and SGST so even if the TDS is deducted the input can be availed by the supplier
2. The question which arises here is that by virtue of Section 7 (5) of the IGST Act all supplies to SEZ units are interstate transactions – Does this mean that the Location of the Supplier and the Place of Supply is in a different state from the state of registration of the recepient ?
Request your thoughts on these two points which would be very helpful
Reply By Alkesh Jani:
The Reply:
Sir,
I acknowledge your concern. In this regards, as far as my knowledge permits me, I have following comments to offer:-
In terms of Section 51 of CGST Act, 2017, the notified person is required to obtain registration as TDS. Normally, the TDS registration will be based on TAN, although holding PAN. Some Govt. Department such as Railway and postal department are example of holding PAN as well as TAN. TDS is required to deduct Tax if the contract value is more than &#

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LEVY OF GST ON LOTTERY
By: – DR.MARIAPPAN GOVINDARAJAN
Goods and Services Tax – GST
Dated:- 22-10-2018

Goods
Section 2(52) of the Central Goods and Services Tax Act, 2017 ('Act' for short) defines the term 'goods' as every kind of movable property other than money and securities but includes actionable claim, growing crops, grass and things attached to or forming part of the land which are agreed to be severed before supply or under a contract of supply.
Actionable claim
Section 2(1) of the Act defines the expression 'actionable claim' as that shall have the same meaning as assigned to it in section 3 of the Transfer of Property Act, 1882
Section 3 of the Transfer of Property Act, 1882, defines the expression 'actionable claim' as a claim to any debt, other than a debt secured by mortgage of immovable property or by hypothecation or pledge of moveable property, or to any beneficial interest in moveable property not in possession either actual or constructive, of th

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pply of lottery tickets would need to be taxed as supply of goods.
GST rate on lottery
In respect of the Agenda Item on Lottery (17th GST Council Meeting) , the Council approved the following –
* The supply of lottery shall attract GST rates as under –
* Lottery run by State Governments – 12% of face value of lottery ticket (Face value to be inclusive of GST)
* Lottery authorized by State Governments – 28% of face value of lottery ticket (Face Value to be inclusive of GST )
* Tax can be levied by the State Governments on the first point of sale by the State Government to the lottery distributor or the sole selling agent appointed by the State Government on reverse charge basis and to exempt agents/stockists below the distributor.
Challenge before High Court on levy of GST on lotteries
In 'Teesta Distributors and others v. Union of India and others' – 2018 (10) TMI 941 – Calcutta High Court, the petitioners have sought a declaration that, lotteries are exempt from tax under

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ct, 2017 or any of the SGST Acts.
* Since lottery is neither 'goods' nor 'service', no levy under the Integrated Goods and Services Tax Act, 2017 can be made.
* When CGST, 2017 and IGST, 2017 propose to tax a lottery, it goes beyond the constitutional definition of 'goods'.
* Since lottery is not 'goods' within the meaning of the Constitution, neither Central nor the State Governments can enact any law for the purpose of levying sales tax on the lottery.
* Treating lottery to be a 'goods' would do violence to the provisions of the Lotteries (Regulation) Act, 1998.
* Sale of lottery ticket is a trade under Article 301 to 304 of the Constitution.
* Differential rates of tax cannot be fixed for lottery tickets imported from other States and lottery tickets produced in the States.
* The discrimination in rates varies between 12 and 28 per cent. It is per se unsustainable and is required to be stuck down. All lottery tickets organized by the States have to be treated at par.

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ts, Central and State Legislations.
* Article 366(12) of the Constitution defines 'goods' to include all material commodities and articles. Accordingly the lotteries are 'goods'.
* The term 'goods' used in Article 366(12) of the Constitution of India is very wide and includes all types of movable properties whether those properties are tangible or intangible and is an inclusive one.
* Lotteries are 'actionable claim' and are included in the definition of 'goods'.
* Lottery is not a commodity in the market which can be bought against consideration and on payment of consideration the property passes to the purchaser
* The Union Parliament and the State Legislature have the competence to levy tax on any item including lottery.
* The State is allowed to pick and choose districts, objects, persons, methods and rates of taxation, if the State, does so reasonably.
* The Legislature enjoys very wide latitude in classification for taxation.
* A statute cannot be declared uncons

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uthorized by the State Government in another State attracts in aggregate 28 per cent, with 14 per cent each under the CGST and SGST.
* The notifications have been issued pursuant to the recommendations made by the GST Council in its 17th meeting. The rates are not discriminatory and are intended to preserve economic uniformity and the interest of the constituent States. According to him, the tax component is included in the price of the ticket. The end customer who purchased the ticket is not saddled with any additional tax burden.
Union of India submitted the following before the High Court-
* Imposition of GST on lottery was discussed at length during the 17th GST Council meeting held on June 18, 2017. The States who are parties to the present writ petition were present in such Council meeting. The GST Council approved and resolved that, sale of lottery ticket will attract GST. The rates were also agreed upon. Therefore, the States should not be permitted to contend contrary to

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vices Tax Act, 2017?
* If so, is differential levy of tax permissible?
* To what reliefs, if any, are the parties entitled to?
First issue – Lottery – an actionable claim?
The High Court analyzed the various provisions of the Act for the term 'goods'. It also analyzed the various judgments of Supreme Court. In 'H Anraj v. State of Tamil Nadu' – 1985 (10) TMI 258 – Supreme Court, it was held that lottery tickets to the extent that they comprise the entitlement to participate in the draw are 'goods' falling within the definition of 'goods' as given in Tamilnadu General Sales Tax Act, 1954 and Bengal Finance (Sales Tax) Act, 1941. Independent of the two state Acts under consideration therein, it has held that, a trade of a lottery ticket confers on the purchaser two rights.
The High Court observed that a sale of a lottery ticket confers on the purchaser thereof two rights-
* a right to participate in the draw; and
* a right to claim a prize contingent upon his being successfu

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cond issue – levy of GST on lotteries
In tune with the constitutional amendments incorporated, Central Goods and Services Tax Act, 2017, Integrated Goods and Services Tax Act, 2017 and the respective State Goods and Services Tax Act, 2017 were enacted. The High Court analyzed the provisions of CGST Act regarding 'goods' , 'actionable claims', 'reverse charge', 'scope of supply', 'levy and collection' which have also been found the State Goods and Services Tax Act. It regulates the levy and collection of tax on intra-State supply of goods or services or both in the State of West Bengal. Legislature enjoys very wide latitude in classification for taxation.
Legislation or a provision contained in a statute can be invalidated on two grounds, namely,
* it is not within the competence of the legislature which passed the law; and/or
* it is in contravention of any of the fundamental rights stipulated in Part III of the Constitution or any other right/provision of the Constitution of I

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teries are kept out of the purview of 'actionable claims' which do not attract the CGST Act, 2017, lottery can therefore be charged to tax under the CGST Act, 2017. On the parity of the same reasoning, lottery is chargeable to tax under WB GST Act, 2017 also.
The High Court therefore held that lottery can be taxed under the CGST Act, 2017 and WB GST Act, 2017.
Third issue – levy of different taxes on lottery
The rationale for imposing differential rates appears from the minutes of the 17th meeting of the GST Council. The rationale for the differential rate or the rates by themselves has not been substantiated to be breach of any provision of the Constitution. The State Government cannot challenge its own notification as unconstitutional as, it has the wherewithal to set the wrong, right. In the present case, the States of Sikkim, Mizoram, Nagaland and Arunachal Pradesh have supported the writ petitioner on the score that the rates of taxes are discriminatory. Such States were prese

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Whether ITC for FY 2017-18 can be availed only till October 20, 2018
By: – Bimal jain
Goods and Services Tax – GST
Dated:- 22-10-2018

Considering the first year of implementation of GST, major challenge is being faced by the Industry Inc in availing GST input tax credit (“ITC”) for the financial year 2017-18 after implementation of GST (i.e. July 2017 to March 2018) and lot of divergent views are floating with respect to the last date till which such ITC can be availed.
Amongst others, most prominent apprehension is that the ITC for the period July 2017 to March 2018, can be claimed on or before due date of filing of the return in Form GSTR-3B for the month of September 2018, which is October 20, 2018. This view is engendered in the light of provisions of Section 16(4) of the CGST Act, 2017 (“the CGST Act”), which draws a time limit to avail ITC for a financial year as the earliest of due date of furnishing return under Section 39 for the month of September following t

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f furnishing of the return under section 39 for the month of September following the end of financial year to which such invoice or invoice relating to such debit note pertains or furnishing of the relevant annual return, whichever is earlier”.
Section 39 of the CGST Act, deals with the monthly return to be filed electronically, for every calendar month or part thereof, in such form and manner as may be prescribed, of inward and outward supplies of goods or services, ITC availed, tax payable, tax paid and other prescribed particulars, on or before the 20th day of the month succeeding such calendar month or part thereof.
In this regard, Rule 61(1) of the CGST Rules, 2017 (“the CGST Rules”), prescribes Form GSTR-3 as the return to be furnished under Section 39(1) of the CGST Act.
Further, Rule 61(5) provides that where the time limit for furnishing of details in Form GSTR-1 under Section 37 and in FORM GSTR-2 under Section 38 has been extended and the circumstances so warrant, the Com

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claim of ITC shall also be extended accordingly.
Analyses on last date to avail ITC:
In view of the above discussed provisions, following views are possible in the context of last date to avail ITC for the period from July 2017 to March 2018:
* ITC for FY 2017-18 can be availed till the date of furnishing Annual return (i.e. December 31, 2018) – Section 16(4) of the CGST Act talks about the return filed under Section 39, which is Form GSTR-3 as per Rule 61(1) of the CGST Rules. Hence, Form GSTR-3B cannot be assumed to be a substitution for Form GSTR-3. Though, Rule 61(5) as amended provides that where the time limit for furnishing details in Form GSTR-1 and Form GSTR-2 has been extended, the Commissioner may specify the manner and condition subject to which the return shall be furnished through Form GSTR-3B.
Therefore, the last date for availing ITC of any invoice/debit note for a financial year 2017-18, would be the earlier of the due dates for filing the GSTR-3 for September 2

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gregate turnover up to ₹ 1.5 crores, for the quarters from July, 2017 to September, 2018, till October 31, 2018.
Further, vide Notifications No. 45 to 47/2018 – Central Tax dated September 10, 2018, due date of GSTR-1 and GSTR-3B for taxpayers who are migrating to GST as per procedure specified in Notification No. 31/2018 – Central tax dated August 6, 2018 was extended till December 31, 2018 for the period July 2017 to November 2018.
Going by the provisions of first proviso to Rule 69 of the CGST Rules, a view may be taken to state that since the time limit for furnishing Form GSTR-1 has been extended till October 31, 2018 for July 2017 to September 2018, while Form GSTR-2 remains suspended, the date of matching relating to claim of ITC shall also be extended accordingly till October 31, 2018 for all regular taxable persons and till December 31, 2018 in case of recently migrated taxpayers as per procedure specified in Notification No. 31/2018 – Central tax dated August 6, 2018.

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er 2018 but entry passed in books in the month of October 2018 due to closure of books for the month of September – Continuing with the above liberal interpretation of Section 16(4) of the CGST Act, one may consciously defer to file GSTR-3B for September till October 31, 2018, but it may happen that books of the Company for FY 2017-18 is closed by 30th September, 2018 and accordingly, any such entry booked in the month of October 2018, while ITC as per GSTR-3B will be reflected in the month of September, 2018. In such cases, there will be a reconciliation issue while filing Annual Return in Form GSTR-9 and GST Audit Report in Form GSTR-9C, in addition to late fees and interest as discussed supra.
Suitable clarification required from the CBIC to clear the mist:
It is highly important that the Government should come out with suitable clarification on last date till when the ITC for July 2017 to March 2018 can be availed. Apart from considering the legal jigsaw of multiple provisions un

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Extension of due date to 25th October, 2018 for furnishing return in the FORM GSTR-3B for the month of September, 2018
GST
Dated:- 22-10-2018

It has been brought to notice that there have been apprehensions by trade and industry relating to the last date for availment of ITC for the period July, 2017 to March, 2018. In order to remove doubts, it was clarified that as per the law, the last date for availing ITC in relation to the period from July, 2017 to March, 2018 is the last date for the filing of return in the FORM GSTR-3B for the month of September, 2018.
In view of the said apprehensions and with a view to give some more time to the trade and industry, the last date for furnishing return in the FORM GSTR-3B for the mont

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Applicant Eligible for Full Input Tax Credit on Taxable Services in Road Construction Under CGST Act Section 16(1.
Case-Laws
GST
Input Tax Credit – The applicant is rendering taxable services

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GST Applicability on Washed Away or Cancelled Contracts: Taxable or Not? Insights on Forward Contract Obligations.
Case-Laws
GST
Levy of GST – charges received on account of washed away / cancelled contracts for supply of goods – Forward Contracts – agreeing to the obligation to refrain from an act, agreeing to the obligation to tolerate an act or a situation, or agreeing to the obligation to do an act – Taxable in one situation and not taxable in other situations.
TMI Updates – Hig

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Pollution Under Control Certificates for vehicles taxed under residual entry, not SAC 9991, with 18% GST rate.
Case-Laws
GST
Levy of GST – services of Pollution Testing of Vehicles – The Acti

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Advance Payment for Villa Sale Taxed at 12% Under GST Act Before Completion Certificate Issuance.
Case-Laws
GST
Liability of tax – The applicant has received advance towards sale of villa pri

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GST Exemption on Charges for Cold Storage of Fresh Poultry Eggs from Animal Rearing or Poultry Farming.
Case-Laws
GST
Levy of GST – cold storage services for poultry eggs – The charges receiv

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Partners' Share Activity Classified as Service Supply Under CGST and TGST Act, 2017.
Case-Laws
GST
Supply or not? – The activity undertaken with respect to the share belonging to the partners

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Goods Detained Over Invalid E-Way Bill; Release Possible with Bond After Part-B Upload Fails to Correct Issue.
Case-Laws
GST
Detained of goods – invalid e-way bill – subsequent uploading of t

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In Re: M/s. Kundan Misthan Bhandar
GST
2018 (11) TMI 1266 – APPELLATE AUTHORITY FOR ADVANCE RULING, UTTARAKHAND – 2018 (19) G. S. T. L. 356 (A. A. R. – GST)
APPELLATE AUTHORITY FOR ADVANCE RULING, UTTARAKHAND – AAAR
Dated:- 22-10-2018
AAR Ruling No. 09/2018-19 in Application No. 08/2018-19
GST
SHRI VIPIN CHANDRA AND SHRI AMIT GUPTA MEMBER
Present for the Applicant: Shri Aishwarya Sharma, Advocate
Present for the Concerned Officer: None
RULING
Under Section 100(1) of the Uttarakhand Goods and Services Act, 2017, an appeal against this ruling lies before the appellate authority for advance ruling constituted under Section 99 of the Uttarakhand Goods and Services Tax Act, 2017, within a period of 30 days from the date of service of this order.
1. This is an application under Sub-Section (1) of Section 97 of the CGST/SGST Act, 2017 (herein after referred to as Act) and the rules made thereunder filed by M/s. Kundan Misthan Bhandar, Subhash Market, Ramnagar (Naini

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etshop when such products are not consumed within the premises of the applicant but are takeaway.
2. Advance Ruling under GST means a decision provided by the authority or the appellate authority to an applicant on matters or on questions specified in sub section (2) of section 97 or sub section (1) of section 100 in relation to the supply of goods or services or both being undertaken or proposed to be undertaken by the applicant.
3. In the present case applicant has sought advance ruling whether the activity of the applicant is supply of goods or supply of services, nature & rate of tax on items and input tax credit. Therefore, in terms of said Section 97 (2) (d), (e) & (g) of Act, the present application is hereby admitted for the questions supra in terms of Section 97 (2) of Act. The provisions of said section are reproduced below:
(2) The question on which the advance ruling is sought under this Act, shall be in respect of,
(a) classification of any goods or services or both;

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as under:
5.1 Whether supply of pure food items such as sweetmeats, namkeens, cold drink and other edible items from a sweetshop which also runs a restaurant is a transaction of supply of goods or a supply of service:
A. Before coming to any conclusion, first we have to go through the relevant provisions of law and the same are covered under section 2 of the Act ibid. The relevant portion of the same extracted an read as under:
(30) “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 principal supply;
(52) “goods” means every kind of movable property other than money and securities but includes actionable claim, growing crops, grass and things attached to or forming part of the land which are agreed to be severed before supply or under a

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strategy today, we will notice very often, two or more goods, or a combination of goods and services, are supplied together. This could be due to either of the following reasons:
(i) A sales strategy – to attract more customers
(ii) The nature or type of goods or services, which requires them to be bundled or supplied together
Under Service Tax, this mechanism is called Bundled Service – which is the rendering of a service or services with another element of service of services. The service tax law was dealing with pure services and not with goods per se. Now the concept introduced is for goods also and is linked with the concept of Principal Supply. Under GST law, supplies which are bundled with two or more supplies of goods or services or combination of goods and services are classified, with distinct characteristics, as:
(i) Composite Supply
(ii) Mixed Supply
If we look at the definitions (supra), Composite supply is one where two or more goods or services or both are sup

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te supply. A supply can be a mixed supply only if it is not a composite supply, As a corollary it can be said that if the transaction consists of supplies not naturally bundled in the ordinary course of business then it would be a Mixed Supply. Once the amenability of the transaction as a composite supply is ruled out, it would be a mixed supply, classified in terms of a supply of goods or services attracting highest rate of tax.
C. From the discussion supra and submission made by the applicant we find that in the case of sweet shop cum restaurant, the services from the restaurant is a principle supply which provides a bundled supply of preparation & sale of food and serving the same and therefore it constitutes a composite supply. It further satisfied the following conditions of a composite supply:
(i) Supply of two or more goods or services or both together
(ii) Goods or services or both are usually provided together in the normal course of business.
In the instant case the natur

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here such supply or service is for cash, deferred payment or other valuable consideration.
5.2 Now we come to issue of applicability of GST rate. Since we already held above that the activity of the applicant come under the purview of “restaurant services”, the same falls under Heading 9963 of GST rates on services under Notification No. 11/2017-Central Rate (Tax) dated 28.06.2017 (as amended time to time) and the relevant port on of the same is reproduce as under:
Sl.No.
Chapter, Section, heading  
Description of service
Rate (in%)
Condition
1
2
3
4
5
7
Heading 9963 (Accommodation, food and beverage services)
Supply, by way of or as part of any service or in any other manner whatsoever, of goods, being food or any other article for human consumption or drink, where such supply or service is for cash, deferred payment or other valuable consideration, provided by a restaurant, eating joint including mess, canteen, whether for consumption on or away from the premi

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In Re: M/s. NHPC Limited
GST
2018 (11) TMI 1265 – AUTHORITY FOR ADVANCE RULINGS, UTTARAKHAND – 2018 (19) G. S. T. L. 349 (A. A. R. – GST)
AUTHORITY FOR ADVANCE RULINGS, UTTARAKHAND – AAR
Dated:- 22-10-2018
AAR Ruling No. 10/2018-19 in Application No. 11/2018-19
GST
SHRI VIPIN CHANDRA AND SHRI AMIT GUPTA MEMBER
Present for the Applicant: Shri N.K. Gupta, Senior Manager Shri J.C. Pant, Manager (Law)
Present for the Concerned Officer: None
RULING
1. This is an application under Sub-Section (1) of Section 97 of the CGST/SGST Act, 2017 (herein after referred to as Act) and the rules made thereunder filed by M/s. NHPC, Admin Building, Tanakpur Power Station, Banbasa, Uttrakhand seeking an advance ruling on following issues:
(a) Whether they are required to pay GST under reverse charge in terms of Notification No. 13/2017 dated 28.06.2017 while making payment to PWD, Uttrakhand for construction of road;
(b) What is the time of supply when advance payment is releas

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services or both.
(f) Whether the applicant is required to be registered.
(g) Whether any particular thing done by the applicant with respect to any goods or services or both amounts to or results in a supply of goods or services or both within the meaning of that term.
4. In the present case applicant has sought advance ruling on applicability of Notification no. 13/2017 dated 28.06.2017 on their activity and time & value of supply of services. Therefore, in terms of said Section 97(2)(b) & (c) of CGST/ GST Act, 2017, the present application is hereby admitted.
5. Accordingly opportunity of personal hearing was granted to the applicant on 27.09.2018. Shri. N.K. Gupta (Senior Manager) and Shri J.C. Pant (Manager Law) of the applicant appeared for personal hearing on said date and submitted documents describing therein exact nature of work being undertaken. Nobody appeared from the side of Revenue for the hearing.
6. From the documents submitted by the applicant we find that applic

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as filed for our consideration in the application. Now we proceed by taking the issue one by one:
(A) Whether they are required to pay GST under reverse charge in terms of Notification No. 13/2017 dated 28.06.2017 while making payment to PWD, Uttarakhand for construction of road.
In the instant case the work allotted to the applicant is related to “construction pf road” which involves both supply of goods as well as supply of services. As per Schedule II of the Act ibid the following activity shall be treated as supply of service-
i. construction of a complex, building, civil structure or a part thereof, including a complex or building intended for sale to a buyer, wholly or partly,
ii. works contract including transfer of property in goods (whether as goods or in some other form) involved in the execution of a works contract.
Thus the activity; of the applicant comes under the purview of supply of services.
Before initiating proceedings, we have gone through the official web-si

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efore us whether the said grants received from Central Government come under the purview of GST.
To appreciate the Jaw position in this regard we find that Notification No. 12/2017-Central Tax (Rate) dated 28th June, 2017 deals with exempted services. The said notification was further amended vide Notification No. 32/2017-Cnetral Tax (Rate) dated 13th October, 2017 vide which entry no. 9C was inserted and the same is extracted as under:
S.No.
Chapter, Section, Heading, Group or Service Code (Tariff)
Description of Services
Rate (per cent.)
Condition
(1)
(2)
(3)
(4)
(5)
“9C
Chapter 99
Supply of service by a Government Entity to Central Government, State Government, Union territory, local authority or any person specified by Central Government, State Government, Union territory or local authority against consideration received from Central Government, State Government, Union territory or local authority, in the form of grants.
Nil
Nil”;
We also find that that “Governme

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ATNA HIGH COURT. The relevant portion of the said judgment is extracted below:
6.-ln the said notification, in the paragraph 2, for clause(s), the following shall be substituted, namely:-
(s) “governmental authority” means an authority or a board or any other body;
(i) set up by an Act of Parliament or a State Legislature; or
(ii) established by Government, with 90% or more participation by way of equity or control, to carry out any function entrusted to a municipality under article 243W of the Constitution;”
11. The provisions contained in sub-clause (i) and sub-clause (ii) of Clause 2(s) are independent dis-conjunctive provisions and the expression “90% or more participation by way of equity or control to carry out any function entrusted to a municipality under Article 243W of the Constitution” is related to sub-clause (ii) of Clause 2(s) alone. The clause (i) is followed by “;” and the word “or”. Therefore, each of the sub-clauses is independent provision. The condition of 90%

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finition of 'governmental entity' merely contemplates that an entity is required to be 'established' by the Government by way of 90% or more equity or control. The definition does not contemplate continuous fulfillment of such requirement post 'establishment' of the 'entity. Therefore the intention of the above amended notification is to enlarge the scope of the definition to cover Government Companies incorporated under the Companies Act also within the ambit of the definition of Government entity”. Thus, if the criterion is fulfilled, at the time of 'establishment' by way of 90% or more Government participation in the equity or by way of control, the entity would be considered as 'governmental entity', within the meaning assigned under the said amended notification. Accordingly we observe the M/s. NHPC Ltd falls under the definition of “Government entity” in as much as at the time of establishment of the company the Hon'ble President of India and its nominees hold 100% equity shares

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(a) Service provider shall be Government entity
(b) Service receiver shall be Central Government, State Government, Union territory, local authority or any person specified by Central Government, State Government, Union territory or local authority
(c) Consideration is in the form of grants
(d) Work has been entrusted by Central Government, State Government, Union Territory or a local authority
As per record & aforesaid requirement we find that.
iii. M/s. NHPC Ltd is covered under the definition of “Government Entity” in as much as the promoter of M/s. NHPC Ltd is Hon'ble President of India which confirm the fact that it is established by the Central Government and it is under. the administrative control of Ministry of Power, Government of India.
iv. In present case the service receiver is Central Government i.e Ministry of External Affairs, Govt. of India
v. The funds provided by MEA from its head “Aid to Nepal” to M/s. NHPC Ltd. This means that the funds provided by MEA or c

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authority, a. Governmental Authority or a Government Entity, which attract GST of 12%. Likewise, WCS attracting 5% GST, their sub-contractor would also be liable @ 5%
We are of the view that the above recommendations makes it clear that if GST rate on the work contract is 12% or 5% then sub-contractor is also liable to discharge his GST liability @ 12% or 5% as the case may be. Similarly if GST rate on the said work contract is exempted or 0%, then supply of service in the form of work contract by the sub-contractor will also come in the purview of exempted or 0%. Thus we are of the firm view that if the principal contractor is providing an exempt works contract service to Government and in such case if works contract is partially or wholly sub-contracted then the sub-contractor would also be exempt from payment of GST. In support of our view we place reliance upon the Government view on the issue in hand in pre-GST regime and the same are reproduce as under:
(i) serial No. 29 sub-c

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ect is assigned by the main contractor to the various sub contractors. In such cases, if the sub-contractors are providing works contract service to the main contractor for completion of the main contract, then service tax is obviously not leviable on the works contract service provided by such sub-contractor.
In the instant case, M/s. NHPC is providing services to Central Government i.e. Ministry of External Affairs and will attract GST @ 12% but by virtue off Notification No. 12/2017 -Central Tax (Rate) dated 28th June, 2017 (as amended time to time), the supply of service in question, as discussed above, is exempted, thus sub-contracting of the said work contract to PWD Govt. of Uttarakhand is also exempted.
In view of the above we observe that the said activity comes under the purview of exempted category as discussed supra, therefore, question of payment of GST under reverse charge in terms of Notification No. 13/2017 -Central Tax (Rate) dated 28.06.2017 does not arise.
(B) Si

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M/s Craftman Automation Pvt. Limited Versus CCE&CGST, Ujjain
Central Excise
2018 (11) TMI 828 – CESTAT NEW DELHI – 2019 (369) E.L.T. 1237 (Tri. – Del.)
CESTAT NEW DELHI – AT
Dated:- 22-10-2018
Ex. Appeal No. 51888 of 2018 – Final Order No. 53213/2018
Central Excise
Mr. Anil Choudhary, Member (Judicial) And Mr. Bijay Kumar, Member (Technical)
Sh. R. K. Ambwani, Advocate for the appellant
Sh. H. C. Saini, AR for the Respondent
ORDER
Per: Anil Choudhary:
The present appeals are directed against the IND-EXCUS-000-APP-503-17-18 dated 16.01.2018 passed by the Commissioner (Appeals), CGST & CEx, Indore wherein he has upheld the order passed by the primary adjudicating authority. In the impugned order, the Commissioner (Appeals) has held that Tractor cess is imposable on the parts and accessories of the Tractors in terms by Notification dated 06.09.1985 issued by the Department of Heavy Industries, New Delhi amended by Notification dated 12.11.1993.
2. Brief fact

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plied as per Central Excise Act (supra).
3. Ld. Advocate appearing on behalf of the appellant submitted that on perusal of the notification regarding imposition of tractors cess, it is evident that cess is leviable on 'tractor' and not on the parts, components and accessories thereof . As the Government of India has not notified the same by the independent notification. It is also impressed upon by the ld. Advocate that the tractor cess is applicable to the tractors only and is not leviable to parts and accessories thereof. In support of the argument, he has relied upon the case laws in the case of CCE, Jamshedpur vs. Tata Motors Ltd. -2016 (336) ELT 208 regarding the imposition of automobile cess alongwith the other decision namely S. M. Kannappa Automobiles P. Ltd. vs. CCE, Bangalore – 2008 (224) ELT 467 (Tri. Bang.). He also referred to Circular No. 41/88, dated 31.08.1988 issued by the Ministry of Finance, New Delhi regarding levy of cess on automobiles consequent upon the introdu

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vocate that the ratio laid down in the aforesaid judgments are mutatis-mutandis applicable for imposition of tractor cess on the parts, components and accessories of tractor, is to be treated at par with that of automobile cess for the levy on the component and part of the automobile. He further stated that Commissioner (Appeals) has not considered the relevant provision of the IRDA Act, Notification regarding the imposition of cess on the tractor, in proper perspective and not decided the issue regarding the application thereof on the parts/ components of tractor.
4. On the other hand, ld. AR appearing for the Revenue reiterated the ground contended in the aforesaid order.
5. Heard the parties and perused appeal record.
6. The issue before us is to decided as to whether the tractor cess is leviable on the part and component of the tractor cleared by the appellant. After going through the case laws cited and circular issued by the Ministry of Finance, it is clear that part and acces

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Formalities /Procedures to be followed for deducting and depositing the TDS by the Drawing and Disbursing Officers under GST Act –Facilities provided in the bill generating system.
G.O.(P) No. 162/2018/Fin Dated:- 22-10-2018 Kerala SGST
GST – States
GOVERNMENT OF KERALA
Finance (Streamlining) Department
Dated, Thiruvananthapuram, 22/10/2018
G.O.(P) No. 162/2018/Fin
ORDER
As per the circular read as 1st paper above, it was clarified that for the purpose of Section 51 of GST Act, the Drawing and Disbursing officers (DDOs) shall obtain separate TDS registration based on TAN issued by Income Tax Department. Subsequently, Government of India vide circular read as second paper above, have issued detailed guidelines for deduction a

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this regard.
In the above circumstances, Government are pleased to issue the following guidelines/procedure to be observed by the DDOs to effect the deduction and deposit of TDS as per GST Act.
1. As a pre-requisite, the DDO/Deductor should be registered in GSTN and obtain registration number in GSTN as tax deductor, as per the circular first paper above.
2. The DDO should generate a chalan in the GSTN for the amount which has to be deducted as TDS before generating the bill and to note down the “CPIN” obtained.
3. While generating the chalan the following points are to be noted,
(a) Component of GST shall be properly classified(SGST, CGST, IGST etc.)
(b) The mode of remittance shall be NEFT/RTGS.
(c) Select the name of Bank as 'R

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the registered DDO also.
8. The DDO should file the return before 10th of the next month as per the guidelines prescribed in the circular issued by GST Department.
9. The validity of chalan generated in GST system is 15 days. Hence, DDO should ensure that the bill is encashed within 15 days of generation of chalan in GSTN.
10. In the case of bills generated through EMLI, an option for entering a valid CPIN, just before e-submitting the bill to treasury will be there, as these bills are to be cleared under LOC system, which will take more than 15 days in some cases.
All Heads of Departments and DDOs are instructed to follow these directions promptly.
(BY ORDER OF THE GOVERNOR)
SANJEEV KAUSHIK IAS
PRINCIPAL SECRETARY (FIN-RESOURCES)

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Star Rays Versus Union of India & Ors.
GST
2018 (11) TMI 604 – BOMBAY HIGH COURT – TMI
BOMBAY HIGH COURT – HC
Dated:- 22-10-2018
WRIT PETITION NO. 2483 OF 2018
GST
M.S. SANKLECHA & RIYAZ I. CHAGLA, JJ.
Mr. Arshil Shah a/w Ms. Parisha Shah for the petitioner
Mr. Vijay Kantharia a/w Mr. Ram Ochani for the respondents
P.C.
1. This petition under Article 226 of the Constitution of India seeks a refund of integrated goods and service tax paid in respect of the goods which have been exported. The refund short is aggregates to an amount of Rs. 8.42 crores and covers the period from July, 2017 to January, 2018.
2. Mr. Kantharia, learned Counsel appearing for the respondents, on instructions, states that in view of the tec

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Extension of time limit for submitting the declaration in FORM GST TRAN-I under rule 117(1A) of the Assam Goods and Service Tax Rules, 2017 in certain cases.
ORDER No. 8/2018-GST Dated:- 22-10-2018 Assam SGST
GST – States
GOVERNMENT OF ASSAM
ORDERS BY THE COMMISSIONER OF STATE TAX, ASSAM
KAR BHAWAN, DISPUR, GUWAHATI-6
ORDER No. 8/2018-GST
Dated Dispur, the 22nd October, 2018
Subject: Extension of time limit for submitting the declaration in FORM GST TRAN-I under rule 117(1A) of the

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Shri Shakti Technologies Versus Union of India and Others
GST
2018 (10) TMI 1618 – KARNATAKA HIGH COURT – TMI
KARNATAKA HIGH COURT – HC
Dated:- 22-10-2018
WRIT PETITION No. 14394/2018 (T-RES)
GST
Dr. VINEET KOTHARI J.
Mr. K. Mallaha Rao, Adv. for Petitioner
Mr. K.M. Shivayogiswamy, Adv. for R1, R3, R4 & R5
Mr. Vikram A. Huilgol, HCGP for R2
ORDER
1. The learned counsels at the Bar submitted that the controversy in hand is covered by a decision of this Court in the case of Mountain Valley Springs India Pvt. Ltd. Vs. Assistant Commissioner of Goods and Services Tax, Commercial Taxes and others) in Writ Petition No.32774/2018 (T-RES) decided on 24/09/2018 in which this Court has held as under:-
“ORDER
1. In respons

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rther to amend the Central Goods and Services Tax Rules, 2017, namely:-
1. (1) These rules may be called the Central Goods and Services Tax (Ninth Amendment) Rules, 2018.
(2) They shall come into force on the date of their publication in the Official Gazette.
2. In the Central Goods and Services Tax Rules, 2017,
(i) in rule 117,
(a) after sub-rule (1), the following sub-rule shall be inserted, namely:-  
“(1A) Notwithstanding anything contained in sub-rule (1), the Commissioner may, on the recommendations of the Council, extend the date for submitting the declaration electronically in FORM GST TRAN-1 by a further period not beyond 31st March, 2019, in respect of registered persons who could not submit the said declaration by the

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at Annexures-G and H of the Writ Petition on the official website of the GST Council on or before 31.03.2019, and therefore, to this extent the relief prayed for in this writ petition stands granted by the GST Department extending the period for submitting the declaration upto 31.03.2019.
3. In view of the said Notification, the present writ petition is disposed of as infructuous, with a liberty and direction to the petitioner-assessee to upload the said FORM GST TRAN-1 and FORM GST TRAN-2 on the official website of the GST Council on or before 31.03.2019, in accordance with law.
2. In view of the submission made by the learned counsels and on perusal of the Order passed by this Court, the present writ petition is disposed of in the same

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M/s MODERN INSECTICIDES LIMITED Versus STATE OF PUNJAB AND OTHERS
GST
2018 (10) TMI 1387 – PUNJAB & HARYANA HIGH COURT – 2018 (19) G. S. T. L. 412 (P & H)
PUNJAB & HARYANA HIGH COURT – HC
Dated:- 22-10-2018
CWP Nos. 23111 and 24162 of 2018
GST
Rajesh Bindal and Mahabir Singh Sindhu, JJ.
For the petitioner : Mr. Rishabh Kapoor, Mr. Saurabh Kapoor and Mr. Rajiv Agnihotri, Advocate
For the Respondent : Mr. Ankur Mittal, Mr. Manoj Dhankhar, Mr. Pankaj Gupta, Mr. Anshuman Chopra, Advocate
ORDER
In terms of the order passed on 17.10.2018, Mr.M.P.Singh, IAS, ACS(T) and Mr.Vivek Partap Singh, IAS ETC, Punjab; Mr.Sanjeev Kaushal, IAS, Addl.Chief Secretary, E&T Department, Government of Haryana and Ms.Ashima Brar, IAS, Excis

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by the petitioners before the Appellate Authority in terms of Section 107 of the Act. As a pre-condition of filing appeal, 10% of the disputed tax amount has also been deposited. In terms of Section 107(7) of the Act, recovery of the balance amount is deemed to be stayed.
Section 129(1)(c) of the Act provides that goods can be released on furnishing of security as prescribed. Section 129(2) of the Act provides for application of Section 67(6) of the Act, which in turn has been referred to in Rule 140 prescribing the bond and the bank guarantee to be furnished.
Considering the fact that the legal issues sought to be raised by the petitioners need examination in detail by the GST Council and the goods detained are still in custody of the De

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Seeks to extend the last date for filing of FORM GSTR-3B for the month of September, 2018 till 25/10/2018 for all taxpayers
CT/GST-14/2017/170 Dated:- 22-10-2018 Assam SGST
GST – States
Assam SGST
Assam SGST
GOVERNMENT OF ASSAM
ORDERS BY THE GOVERNOR
OFFICE OF THE COMMISSIONER OF STATE TAX ASSAM : : KAR BHAWAN
NOTIFICATION No. 17/2018-GST
The 22nd October, 2018
No. CT/GST-14/2017/170.- In exercise of the powers conferred by section 168 of the Assam Goods and Services Tax Act,

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Extension for GSTR-3B of September 2018
55/2018-State Tax Dated:- 22-10-2018 Gujarat SGST
GST – States
Gujarat SGST
Gujarat SGST
NOTIFICATION
By the Commissioner of State Tax,
Gujarat State, Ahmedabad
Dated the 22th October, 2018
Notification No. 55/2018-State Tax
No. GSL/S.168/B.20
In exercise of the powers conferred by section 168 of the Gujarat Goods and Services Tax Act, 2017 (Guj.25 of 2017) read with sub-rule (5) of rule 61 of the Gujarat Goods and Services Tax Rules,

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Exempts a person making inter-State taxable supplies of handicraft goods from the requirement to obtain registration – But e-way bill will be required.
3/2018 Dated:- 22-10-2018 Integrated GST (IGST)
GST
IGST
IGST
Government of India
Ministry of Finance
Department of Revenue
Central Board of Indirect Taxes and Customs
Notification No. 3/2018 – Integrated Tax
New Delhi, the 22nd October, 2018
G.S.R. 1052 (E).-In exercise of the powers conferred by section 20 of the Integrated Goods and Services Tax Act, 2017 (13 of 2017) read with sub-section (2) of section 23 of the Central Goods and Services Tax Act, 2017 (12 of 2017) , hereinafter referred to as the “said Act”, the Central Government, on the recommendations of the Cou

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the 26th July, 2018, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i) vide number G.S.R. 695 (E), dated the 26th July, 2018 and falling under the Chapter, Heading, Sub-heading or Tariff item specified in column (2) of the Table contained in the said notification and the Description specified in the corresponding entry in column (3) of the Table contained in the said notification; or
(ii) such persons making inter-State taxable supplies of the products mentioned in column (2) of the Table below and the Harmonised System of Nomenclature (HSN) code mentioned in the corresponding entry in column (3) of the said Table, when made by the craftsmen predominantly by hand even though some machinery may also be us

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14.
Theatre costumes
61, 62, 63
15.
Coir products (including mats, mattresses)
5705, 9404
16.
Leather footwear
6403, 6405
17.
Carved stone products (including statues, statuettes, figures of animals, writing sets, ashtray, candle stand)
6802
18.
Stones inlay work
68
19.
Pottery and clay products, including terracotta
6901, 6909, 6911, 6912, 6913, 6914
20.
Metal table and kitchen ware (copper, brass ware)
7418
21.
Metal statues, images/statues vases, urns and crosses of the type used for decoration of metals of Chapters 73 and 74
8306
22.
Metal bidriware
8306
23.
Musical instruments
92
24.
Horn and bone products
96
25.
Conch shell crafts
96
26.
Bamboo furniture, cane/Rattan furniture
94
27.
Dolls and t

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gst credit eligibility
Query (Issue) Started By: – Ramakrishnan Seshadri Dated:- 21-10-2018 Last Reply Date:- 26-10-2018 Goods and Services Tax – GST
Got 5 Replies
GST
Dear experts,
We are the manufacturer of automobile parts and supplying to our OEM customer.We had doubt. We have developed a new supplier outside the state and he supplied the parts. He cleared the goods and book the consignment through transport agency . The consignment receives at the transporter godown . He stocks the consignment at transporter godown and he is delivering the goods as and when required . Our question is whether this is correct or not. The invoice date will be 2 months before but the receipt date will be today from transporter place. gst cred

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Seeks to extend the due dates for quarterly furnishing of FORM GSTR-1 of those Taxpayer whose aggregate turnover is 1.5 crore or more for the period July,2018 to Mar,2019
CT/LEG/GST-NT/12/17/960 Dated:- 21-10-2018 Nagaland SGST
GST – States
Nagaland SGST
Nagaland SGST
GOVERNMENT OF NAGALAND
OFFICE OF THE COMMISSIONER OF STATE TAXES
NAGALAND: DIMAPUR
Dated Dimapur, the 21st October, 2018
NOTIFICATION- 20/2018
In exercise of the powers conferred by the second proviso to sub-section (1) of section 37 read with section 168 of the Nagaland Goods and Services Tax Act, 2017 (4 of 2017) (hereafter in this notification referred to as the said Act), the Commissioner, on the recommendations of the Council, hereby extends the time l

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