Goods and Services Tax

Goods and Services Tax – 28/2018 – Dated:- 19-6-2018 – Government of India Ministry of Finance Department of Revenue Central Board of Indirect Taxes and Customs Notification No. 28/2018 – Central Tax New Delhi, the 19th June, 2018 G.S.R. 574 (E).- In exercise of the powers conferred by section 164 of the Central Goods and Services Tax Act, 2017 (12 of 2017), the Central Government hereby makes the following rules further to amend the Central Goods and Services Tax Rules, 2017, namely:- (1) These rules may be called the Central Goods and Services Tax (Sixth Amendment) Rules, 2018. (2) Save as otherwise provided in these rules, they shall come into force on the date of their publication in the Official Gazette. 2. In the Central Goods and Se

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ion Numbers for the purposes of the said Chapter XVI. ; (ii) in rule 138C, after sub-rule (1), the following proviso shall be inserted, namely:- Provided that where the circumstances so warrant, the Commissioner, or any other officer authorised by him, may, on sufficient cause being shown, extend the time for recording of the final report in Part B of FORM EWB-03, for a further period not exceeding three days. Explanation.- The period of twenty four hours or, as the case may be, three days shall be counted from the midnight of the date on which the vehicle was intercepted. ; (iii) in rule 142, in sub-rule (5), after the words and figures of section 76 , the words and figures or section 129 or section 130 shall be inserted; (iv) after FORM G

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Goods and Services Tax – Started By: – Rushab Jain – Dated:- 18-6-2018 Last Replied Date:- 15-8-2018 – We are running a business of transportation of school students. We had an formal agreement with the school that we will provided services of transportation of school students. However we do not receive any consideration from school nor we raise any invoice on school. Entire consideration is received from school students directly. Now my question is whether these services is taxable or exempt?If it is taxable or exempt please specify under which head i.e service to educational institution or transport of passenger – Reply By YAGAY and SUN – The Reply = NIL Rate of GST is applicable on followings.Education (pre-school to high secondary) including-(i) transportation of students, teachers and staff;(ii) mid-day meals and other catering(iii) security and house-keeping services performed in schools(iv) admission to, or conduct of examination by, such institution upto higher secondary. – Re

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deration from the students directly, alternatively you can charge gst @ 2.5% vide Sl. No. 8 (vi) of Notification No. 11/2017-Central Tax (Rate) dated 28.6.2017 as amended subject to the condition that credit of input tax charged on goods and services used in supplying the service, other than the input tax credit of input service in the same line of business (i.e. service procured from another service provider of transporting passengers in a motor vehicle or renting of a motor vehicle), has not been taken. – Reply By Alkesh Jani – The Reply = Sir, Please confirm you turnover. is it above threshold limit?Thanks – Reply By KASTURI SETHI – The Reply = With due regard, I express my opinion as under :- Ultimat goal is exemption to education that is not to tax student. If Notification 11/17 – CT Rate comes into play, the very purpose of exemption to education will be defeated. – Reply By KASTURI SETHI – The Reply = Threshold exemption is secondary issue. Primary issue is whether exemption ava

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and any reference to a person to whom a supply is made shall be construed as a reference to the recipient of the supply and shall include an agent acting as such on behalf of the recipient in relation to the goods or services or both supplied. According to the definition, service recipient in my case are school students( means parents) as consideration is received from them, then I think in my case it would be a taxable supply. Please clarify, I might be wrong in interpretation. Thanks – Reply By KASTURI SETHI – The Reply = No person can pay any tax on one's own volition. In this situation, Service Receiver is student and not parents. Nobody can deny it. You can write name of student, class, school and parents'name on the invoice. This supply of service is fully exempted. You require to prepare invoice as documentary evidence of service provided to education institution. Are students not part of educational institutions ? Main beneficiary of this exemption is student and you wa

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CCEX, Kanpur dated 10-1-2017 where in CESTAT Allahabad held in favour of the assessee. However this is Service Tax Case law , can we apply it in GST for our reference in Maharashtra though it is of Allahabad?Thanks Once Again – Reply By KASTURI SETHI – The Reply = Dear Queries, Let me examine this case law in detail.Thereafter I would be able to express my opinion. – Reply By Alkesh Jani – The Reply = Sir, My intention to ask the turnover, was that, if the transporter s aggregate turnover, is below threshold limit, GST Act is not applicable and if the turnover is above threshold limit, applicability of Act and Notification can be discussed. Assuming the turnover of transporter is above the threshold limit, than my view is that, the services are provided to the passengers (here student) and not to educational Institute. Even in case of educational Institute, the exemption is available upto Higher Secondary level, so the exemption to Student of above Secondary level is not extended. When

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Please justify / clarify.Thanks – Reply By KASTURI SETHI – The Reply = Issue is being deviated. I still stick to my views. However, if you want to be tension-free, opt for advance ruling. Without advance ruling, no officer will give clear cut reply. Only last resort is AAR. – Reply By YAGAY and SUN – The Reply = Yes, Advance Ruling will sort out your issue definitely. – Reply By Rushab Jain – The Reply = Dear Sir,I had gone through your post and noted that it will be better to have advance ruling from the Department. However will request you to give your final comments considering the case law Sangam Travels vs. CCEx, Kanpur decided by CESTAT allahabad .Thanks – Reply By Alkesh Jani – The Reply = Sir,The clarification as requested by you is that, a contract may be written or verbal, if executed. In your case, you agreed to pick up the student and to drop at the school with agreed consideration, is nothing but execution of contract. The same thing is mentioned in last para of my reply.

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GST – Started By: – DEEPAKKUMAR KUSHWAHA – Dated:- 18-6-2018 Last Replied Date:- 5-2-2019 – DEAR SIR MY GST NO HAS BEEN CANCELLED DUE TO NON FILLING OF RETURNS TIMELY AND OFFICER SEND CANCELLATION ORDER ON 4/3/2018 TO SUBMISSION OF SHOW CAUSE NOTICE BUT WE COULD NOT SUBMIT ANSWAR AND OFFICER HAS CANCENLLED MY GST NO ON 17/3/2018 DUE TO MY OLD ACCOUNTENT HAS FEEDED HIS OWN MOBILE NO AND EMAIL ID SO THAT I WAS NOT AWARE FROM ANY TYPE OF NOTICE AND TIME LIMIT. AND NOW I HAVE COMPLETED MY ALL THE GSTR3B RETURNS TILL MAY 2018 CLOSING AND COMPLETED MY GSTR1 RETURNS TILL MARCH 18 CLOSING ON 16/6/2018 WITH ALL THE PENALTIES AND LATE FEES NOW WHAT SHOLD I DO FOR REACTIVATION OF MY GST NUMBER BECAUSE GST COMMON PORTAL NOT ALLOWING ME TO PROCESS THE REVOCATION OF CANCELLED GST NO APPLICATION ONLINE ERROR COMING ACCESS DENIED THAN HOW I WILL GET ARN NUMBER FOR REACTIVATION OF MY GST NUMBER BECAUSE TIME LIMIT OF 30 DAYS FOR REVOCATION APPLICATION PERIOD HAS BEEN ALREADY CROSSED. SO KINDLY SUGGEST

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ER IF NOT GENERETED BY GST ONLINE PORTAL AND GST PORTAL SHOWING ACCESS DENIED – Reply By KASTURI SETHI – The Reply = Better option is that the jurisdictional GST Officer should talk to Redressal Grievance Cell to solve the problem. – Reply By YAGAY and SUN – The Reply = The department has issued circular for making changes in E-MAIL ID and Mobile number with the help of jurisdictional commissioner in this regard. – Reply By YAGAY and SUN – The Reply = 23. Revocation of cancellation of registration.- (1) A registered person, whose registration is cancelled by the proper officer on his own motion, may submit an application for revocation of cancellation of registration, in FORM GST REG-21, to such proper officer, within a period of thirty days from the date of the service of the order of cancellation of registration at the common portal, either directly or through a Facilitation Centre notified by the Commissioner: Provided that no application for revocation shall be filed, if the regist

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in clause (b) of sub-rule (2), issue a notice in FORM GST REG-23 requiring the applicant to show cause as to why the application submitted for revocation under sub-rule (1) should not be rejected and the applicant shall furnish the reply within a period of seven working days from the date of the service of the notice in FORM GST REG-24. (4) Upon receipt of the information or clarification in FORM GST REG-24, the proper officer shall proceed to dispose of the application in the manner specified in sub-rule (2) within a period of thirty days from the date of the receipt of such information or clarification from the applicant. – Reply By Ganeshan Kalyani – The Reply = You must approach GST office to seek support. They have the authority to revoke the number. talk to GST helpdesk for solution. – Reply By RAVI GOLA – The Reply = REGARDING REVOCATION OF CANCELLED GST NO DEAR SIR MY GST NO HAS BEEN CANCELLED DUE TO NON FILLING OF RETURNS TIMELY AND OFFICER SEND CANCELLATION ORDER ON 4/3/2018

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nal Officer) can help you to come out of this whirlpool after discussion with Grievance Redressal Cell. If jurisdictional GST Officer cannot, then filing an Appeal with the Commissioner (Appeals) is the last resort. Grievance Redressal Cell wants order in writing from the department to cancel revocation of registration on Common Portal System. – Reply By Chandra n – The Reply = Can i know how did u file returns when yr gstin was inactive.Is there some kind of form to fill in.I cannot file returns because my gstin is inactive frm january 2019. – Reply By Chandra n – The Reply = ty for the reply mr.sethi.the order for cancellation is 21.1.2019 but effective from 1.8.2018. We have filed returns for august 2018 .Yet to file for the rest of the months., revocation could not be filed because the gstin is inactive.our cto asked us for arn number which we cannot get because the application for registration for revocation itself is inactive for us.It says file your returns until january 2019 an

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Goods and Services Tax – GST – Dated:- 18-6-2018 – Historic tax reform, the Goods and Service Tax (GST), has resulted in formalization of economy and consequently information flow would eventually augment not only the Indirect Tax collections but also Direct Tax collections. In the past, the Centre had little data on small manufacturers and consumption because the excise was imposed only at the manufacturing stage while the States had little data on the activities of local firms outside their borders. Under the GST, there will be now seamless flow of availability of common set of data to both the Centre and the States making Direct and Indirect Tax collections more effective. There are early signs of tax base expansion. Between June and Ju

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to end digitization of all processes, is the biggest reform measure which is already creating more jobs in formal sector and eliminating transactions which are not recorded earlier in the books of accounts and thus, were outside the tax net so far. GST is designed to bring about better tax compliance and transparency in tax system. It is putting a premium on honesty. It would make increasingly difficult for those (who are liable to pay tax) to remain outside the tax net. A number of procedural changes have also been made since the roll-out of GST on 1st July, 2017 in order to simplify the processes. An extensive exercise was undertaken for tax payers education and facilitation by way of knowledge sharing, dissemination of information and r

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Goods and Services Tax – Started By: – Yatin Bhopi – Dated:- 18-6-2018 Last Replied Date:- 28-6-2018 – Dear experts We have erroneously not paid service tax for the period prior to GST. I want to know procedure to pay service tax and excise duty now. Please let me know 1. Whether we can pay service tax and excise duty as per earlier procedure i.e. through https://cbec-easiest.gov.in/EST/InputPageForEPaymentServlet portal and under earlier registrations numbers. or 2. We need to pay GST through

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Goods and Services Tax – Started By: – CABIJENDERKUMAR BANSAL – Dated:- 18-6-2018 Last Replied Date:- 18-6-2018 – X(Delhi) ordered goods from Y(US), which Y get it shipped from Z(SEZ in India) to X(bill to ship to model). Z raised bill to Y of 3000 US$ + custom duty and IGST paid for clearance for home consumption (SEZ to DTA unit) total 3500 us$. X got bill from Y of 4000 US$. X did not pay IGST and duty at its own, but in GSTR-2A of X, IGST is reflected from Z(SEZ). Can X claim this IGST inpu

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Goods and Services Tax – Started By: – CABIJENDERKUMAR BANSAL – Dated:- 18-6-2018 Last Replied Date:- 17-11-2018 – X(USA) has signed contract with Y(India) for production of goods & export to X.Mould was to be provided by X as per contract. X has given advance of ₹ 50 L to Y for purchase of mould in India & to be retained by Y for production. Y purchased mould from Z(India) & availed GST input on this. Should Y raise export invoice of mould to X(though physically to be retained by Y)? or Y shall add amortised cost of mould in export invoices of goods to X? is input eligible on purchase of mould by Y from z. – Reply By Rajagopalan Ranganathan – The Reply = Sir ,It depends on the invoice raised by Z whether the invoice is r

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H S N CODES on hot & sweet items for sweet shops – Goods and Services Tax – Started By: – M.Dyanesh MODUKURI – Dated:- 18-6-2018 Last Replied Date:- 25-6-2018 – Can any one guide me on H S N codes rel

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Goods and Services Tax – GST – By: – Balasubramanian Natarajan – Dated:- 18-6-2018 Last Replied Date:- 2-7-2018 – Slump sale between related parties- Taxability and Valuation under GST The following questions came up for consideration before AAR-Karnataka in the case of M/S RAJASHRI FOODS PVT. LTD-[ 2018 (5) TMI 1651 – AUTHORITY FOR ADVANCE RULING – KARNATAKA ] Supply of goods and/or services – Intent to sell unit situated at Hiriyur along with all assets and liabilities – Whether the transaction would amount to supply of goods or supply of services or supply of goods & services? – N/N. 12/2017-Central Tax (Rate) dated 28.06.2017 – Whether the transaction would cover under sl.no.2 of the N/N. 12/2017-Central Tax (Rate) dated 28.06.2017? The AAR ruled as under: AAR has held that it is a supply of service Ruling: – The transaction of transfer of business as a whole of one of the units of the Applicant in the nature of a going concern amounts to supply of service – The transaction of

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charged on any supply of goods or services or both to him which are used or intended to be used in the course or furtherance of his business and the said amount shall be credited to the electronic credit ledger of such person. Invoice by the supplier in case of slump sale: In this case tax invoice cannot be issued. Instead he has to issue Bill of supply as per Section 31(3)( c ) as given below: (c) a registered person supplying exempted goods or services or both or paying tax under the provisions of section 10 shall issue, instead of a tax invoice, a bill of supply containing such particulars and in such manner as may be prescribed: As such the question of ITC on such transaction does not arise. Input Tax Credit of ITC transferred on slump sale -On transfer of business The other issue which needs to be examined is the availability if ITC balance transferred as part of slump sale- CGST Act, 2017-Section 18 (3) Where there is a change in the constitution of a registered person on accoun

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the ratio of the value of assets of the new units as specified in the demerger scheme. (2) The transferor shall also submit a copy of a certificate issued by a practicing chartered accountant or cost accountant certifying that the sale, merger, de-merger, amalgamation, lease or transfer of business has been done with a specific provision for the transfer of liabilities. (3) The transferee shall, on the common portal, accept the details so furnished by the transferor and, upon such acceptance, the un-utilized credit specified in FORM GST ITC 02 shall be credited to his electronic credit ledger. (4) The inputs and capital goods so transferred shall be duly accounted for by the transferee in his books of account As such the transferee is entitled to the ITC transferred as part of transfer business as a going concern in the form of slump sale. Valuation: CGST Rules 2017 – Rule 28 deals with valuation between related parties- 28. Value of supply of goods or services or both between distinc

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declared in the invoice shall be deemed to be the open market value of the goods or services 30. Value of supply of goods or services or both based on cost.-Where the value of a supply of goods or services or both is not determinable by any of the preceding rules of this Chapter, the value shall be one hundred and ten percent of the cost of production or manufacture or the cost of acquisition of such goods or the cost of provision of such services. In this case the following are to be noted Open market value – Slump sale is not an open market sale , since it is not normally made available In the market Each slump sale is unique and there cannot be any services of a like kind and quality The proviso is not applicable as it is not intended for further supply as such Cost of production or manufacture is not applicable Cost of acquisition is not applicable as the supply is one of service of business as going concern In view of the above analysis we may conclude Rule 28 is not applicable .

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Goods and Services Tax – GST – By: – Mr. M. GOVINDARAJAN – Dated:- 18-6-2018 – Levy of tax Section 9 of the Central Good and Services Tax Act, 2017 ( Act for short) provides for the levy of goods and services tax ( tax for short). Section 9(1) provides that there shall be levied a tax called the central goods and services tax on all intra-State supplies of goods or services or both, except on the supply of alcoholic liquor for human consumption, on the value determined under section 15 and at such rates, not exceeding twenty per cent., as may be notified by the Government on the recommendations of the Council and collected in such manner as may be prescribed and shall be paid by the taxable person. Reverse charge mechanism Section 2(98) of the Act defines the expression reverse charge as the liability to pay tax by the recipient of supply of goods or services or both instead of the supplier of such goods or services or both under sub-section (3) or sub-section (4) of section 9, or und

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Act, 2017 provides that the integrated tax in respect of the supply of taxable goods or services or both by a supplier, who is not registered, to a registered person shall be paid by such person on reverse charge basis as the recipient and all the provisions of this Act shall apply to such recipient as if he is the person liable for paying the tax in relation to the supply of such goods or services or both. Section 9(4) of CGST Act and section 5(4) of IGST Act clearly provides that the central tax, as the case may be, the integrated tax in respect of the supply of taxable goods or services or both by a supplier, who is not registered, to a registered person shall be paid by the recipient who is a registered person shall be paid such person on reverse charge basis as the recipient. From the above said provisions it can be inferred that if any supply of goods or services provide d by a unregistered person to a unregistered person then such recipient who is also unregistered is not liable

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ed person is not required to collect tax. Once an unregistered person, as a recipient, is not required to pay service tax under reverse charge mechanism he is also not required to register under the Act. Advance Ruling In re Joint Plant Committee – 2018 (4) TMI 809 – AUTHORITY FOR ADVANCE RULING , WEST BENGAL the applicant is a nonprofit organization set up by the Central Government. The applicant declares that it has not been registered under any of the repealed acts and wants a ruling on whether it is required to be registered under CGST/WBGST Act. The functions of the applicant include management and operation of the Steel Development Fund and other funds accumulated under the Iron & Steel (Control) Order, 1956, study and analysis of and maintenance of comprehensive data base on market situation in the Iron & Steel Sector including fluctuation in market price, production, availability and the movement of material etc., The Authority found from the statement of the accounts f

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Goods and Services Tax – GST – By: – Dr. Sanjiv Agarwal – Dated:- 18-6-2018 Last Replied Date:- 18-6-2018 – Advance rulings are important in any tax law as it provides a forum for clarification and possible interpretation of statutory provisions. Moreover, it conveys the legislative intention from the revenue s view point. Provisions of advance ruling are contained in section 95 to 106 of CGST Act, 2017 and State / UT GST enactment. Rules 103 to 107 of also provide for forms, manner, certification etc. Advance Ruling is a guidance sought in advance from the prescribed authority. Advance ruling is, therefore, (a) a process of determination, (b) by the prescribed authority only, (c) of a question of law or fact, (d) relating to liability of GST, (e) on proposed supply transaction, (f) to be undertaken by an applicant. The broad objectives for setting up advance ruling mechanism are: To provide certainty in tax liability in advance in relation to an activity proposed to be undertaken by

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advance rulings in order to provide summarized version of the ruling but these needs to be read in the background of the question involved: Advance ruling on taxability of hotel accommodation services in relation to SEZ Where the applicant was providing hotel accommodation / restaurant services to employees and guests of units located in Special Economic Zones (SEZ) and charging CGST and SGST at applicable rates which was objected to by SEZ units on the ground that being zero rated supply, rate of GST should be Nil, the Authority for Advance Ruling held that the supplies of goods or service towards the authorized operations shall be treated as supplies to SEZ Unit. Further, the place of supply of the services by way of lodging in a hotel shall be the location at which the immovable property (hotel) is located and the place of supply of restaurant and catering services shall be the location where the services are actually performed. Therefore, the hotel accommodation and restaurant ser

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es to the business of the company as a whole. Transfer of a going concern means the transfer of a running business which is capable of being carried on by the purchaser as an independent business. In the instant case, the applicant had not furnished any documentary evidence to establish that the Applicant is a going concern except their admission that it is an ongoing business and the transaction proposes to transfer all the assets and liabilities to the new owner. It implies that the business will continue in the new hands with regularity and a nature of permanency. The sale of a going concern by a business house would not attract tax under the Goods and Services (GST) regime. [IN RE : M/S RAJASHRI FOODS PVT. LTD [ 2018 (5) TMI 1651 – AUTHORITY FOR ADVANCE RULING – KARNATAKA ]- Case No. KAR ADRG 6/2018 (AAR Karataka) dated 23.04.2018 – yet to be reported]. Advance Ruling on EPC contracts The Applicant is an EPC contractor and enters into contract with various developers who desirous t

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AUTHORITY FOR ADVANCE RULING – MAHARASHTRA ]. Advance ruling on GST on interest The applicant, Del Credere Agent (DCA), filed an application before the Authority Advance Ruling seeking advance ruling on the taxability of interest amount charged by it on short term loan given to the buyers of material. It clarified that the role of the DCA was limited to booking of order and to ensure that payment will be made to the principal in case of default of the customer. In the entire transaction neither principal supplies the goods to DCA, nor does DCA supply the goods to customers. The Authority for Advance Ruling ruled that the interest was the consideration towards loan extended to the customers, not towards the payment of consideration for supply of goods by the principal to the customers. Further, as per S. No. 27 of Notification No. 12/2017-Central Tax (Rate),in case of services by way of extending loans, the consideration represented by way of interest is exempt from GST. Therefore, suc

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2018 (7) TMI 1742 – KERALA HIGH COURT – TMI – Release of detained goods – Section 129 of the Central Goods and Services Tax Act as also the Kerala State Goods and Services Tax Act – Held that:- An identical matter has been disposed of by a Division Bench of this Court in THE COMMERCIAL TAX OFFICER AND THE INTELLIGENCE INSPECTOR VERSUS MADHU. M.B. [2017 (9) TMI 1044 – KERALA HIGH COURT], directing expeditious completion of the adjudication of the matter and permitting release of the goods detained pending adjudication, in terms of Rule 140(1) of the Kerala Goods and Services Tax Rules, 2017 – the writ petition is disposed of directing the competent authority to complete the adjudication provided for under Section 129 of the statutes. – W. P

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GST – States – 14/2018-19-GST – Dated:- 18-6-2018 – Government of Goa Department of Commercial Taxes Vikrikar Bhavan, Panaji Goa 403001 (Circular No. 14/2018-19-GST) CCT/26-4/2017-2018/1103 Dated: 18th June, 2018 Subject: Clarifications of certain issues under GST- regarding Representations have been received seeking clarification on certain issues under the GS"I' laws. The same have been examined and the clarifications on the same are as below: Sl.No. Issue Clarification 1. Whether services of short-term accommodation, conferencing, banqueting etc. provided to a Special Economic Zone (SEZ) developer or a SEZ unit should be treated as an inter-State supply (under section 7(5)(b) of the IGST Act, 2017) or an intra-State supply (under section 12(3)(c) of the IGST Act, 2017)? 1.1 As per section 7(5) (b) of the Integrated Goods and Services Tax Act, 2017 (IGST Act in short), the supply of goods or services or both to a SEZ developer or a SEZ unit shall be treated to be a supply o

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c., provided to a SEZ developer or a SE7, unit shall be treated as an inter-State supply. 2. Whether the benefit of zero rated supply can be allowed to all procurements by a SEZ developer or a SEZ unit such as event management services, hotel and accommodation services, consumables etc.? 2.1 As per section 16(1) of the IGST Act, zero rated supplies means supplies of goods or services or both to a SEZ developer or a SEZ unit. Whereas, section 16(3) of the IGST Act provides for refund to a registered person making zero rated supplies under bond/LUT or on payment of integrated tax, subject to such conditions, safeguards and procedure as may be prescribed. Further, as per the second proviso to rule 89(1) of the Goa Goods and Services Tax Rules, 2017 (Goa GST Rules in short), in respect of supplies to a SEZ developer or a SEZ unit, the application for refund shall be filed by the: (a) supplier of goods after such goods have been admitted in full in the SEZ for authorised operations, as endo

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pplier. 3. Whether independent fabric processors (job workers) in the textile sector supplying job work services are eligible for refund of unutilized input tax credit on account of inverted duty structure under section 54(3) of the Goa GST Act, 2017, even if the goods (fabrics) supplied are covered under notification No. 38/1/2017-Fin(R&C)(5/2017-Rate) (here in after referred as notification) dated 30.06.2017? 3.1 Notification dated 30.06.2017 specifies the goods in respect of which refund of unutilized input tax credit (ITC) on account of inverted duty structure under section 54(3) of the Goa GST Act shall not be allowed where the credit has accumulated on account of rate of tax on inputs being higher than the rate of tax on output supplies of such goods. However, in case of fabric processors, the output supply is the supply of job work services and not of goods (fabrics). 3.2 Hence, it is clarified that the fabric processors shall be eligible for refund of unutilized ITC on acco

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2018 (6) TMI 1304 – MADRAS HIGH COURT – 2018 (361) E.L.T. 962 (Mad.) – Validity of interim order of stay – auction of property for realization of dues – the order was challenged after a long period of 7 years – Held that:- Considering the fact that the writ petitioner has chosen to challenge the Order-in-Original after a period of seven years and considering the fact that the same was entertained by granting an interim order without assigning any reason, we are fully satisfied that the appellants have made out a case to interfere with the order passed by the writ Court, even though the same was made at the admission stage – the properties of the writ petitioner were already under attachment from the year 2011 onwards and such properties were brought for public auction as early as on 28.02.2018 and the same was purchased by a successful bidder on 16.03.2018 and in whose favour, a delivery order has also been issued on 20.03.2018, we do not find any reason or justification to sustain th

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ee/writ petitioner. The said order was put to challenge before the writ Court after seven years, only when the properties belonging to the writ petitioner was put into public auction for realization of the tax due and other amount payable by the writ petitioner. 3.Mr.B.Vijay Karthikeyan, learned Senior Standing Counsel for the appellants vehemently contended that the very entertaining of the writ petition against the Order-in-Original that too made as early as on 27.04.2011, cannot be sustained apart from the fact that the writ Court has also chosen to grant the interim stay of such order at the admission stage itself without even allowing the respondents to put forth their case and bring the actual state of affairs as on the date of filing the writ petition. He further submitted that the properties belonging to the writ petitioner was already under attachment as early as in the year 2011 itself and consequent upon such attachment, e-auction was conducted and third party successful bid

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r submitted that even otherwise, before bringing the property for auction, the appellants/respondents should have issued notice to the writ petitioner. 5.We heard both sides and perused the materials placed before this Court. 6.At the time of entertaining the writ appeal, we have directed the parties to maintain status quo as on 27.04.2018 and the said order of status quo is still in force. 7.The present writ appeal is arising out of an interim order of stay granted by the writ Court, while entertaining the writ petition challenging the order of the adjudicating authority. The matter pertains to the service tax dispute. Undoubtedly, as against the Order-in-Original, a statutory appeal remedy is available to the aggrieved party before the appellate authority, namely, Commissioner of Customs and Central Excise (Appeals) and such appeal shall also to be filed within the prescribed period of limitation. It is the case of the writ petitioner that they are not aware of the order passed by th

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n the part of the writ petitioner in challenging the impugned proceedings after such inordinate delay of seven years. 9.Perusal of the affidavit filed in support of the writ petition would also reveal that the petitioner has not explained as to why they approach this Court after a period of seven years without even filing a statutory appeal within the prescribed period of limitation, except to state that the writ petitioner was constrained to close down their operations due to severe financial crunch and further labour unrest and management rejigs have contributed to valuable time having been lost much to the writ petitioner's own prejudice. Needless to say that when the writ petitioner had suffered an order at the hands of the adjudicating authority as early as on 27.04.2011, unless and until such order is put to challenge before the appropriate forum immediately, the writ petitioner cannot be heard to say that due to financial crunch, the challenge was not made immediately. There

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ition, the writ Court entertained the writ petition and granted the interim stay of the impugned proceedings also without assigning any reason for granting such interim order. Even though the same has been granted at the admission stage, a prima facie of view should have been stated for granting such interim order, more particularly, when the very impugned proceedings was passed as early as on 24.07.2011 and as against such proceedings, a statutory appellate remedy was very much available to the writ petitioner before the concerned appellate authority. It is relevant to refer the recent decision of the Apex Court relied on by the learned senior standing counsel for the appellants, reported in (2018)3 SCC 85, (cited supra), at this juncture, wherein the Apex Court at paragraph Nos.15 and 16 as observed as follows:- 16. It is the solemn duty of the Court to apply the correct law without waiting for an objection to be raised by a party, especially when the law stands well settled. Any dep

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in mind before passing the impugned interim order:- "46. It must be remembered that stay of an action initiated by the State and/or its agencies/instrumentalities for recovery of taxes, cess, fees, etc. seriously impedes execution of projects of public importance and disables them from discharging their constitutional and legal obligations towards the citizens. In cases relating to recovery of the dues of banks, financial institutions and secured creditors, stay granted by the High Court would have serious adverse impact on the financial health of such bodies/institutions, which (sic will) ultimately prove detrimental to the economy of the nation. Therefore, the High Court should be extremely careful and circumspect in exercising its discretion to grant stay in such matters. Of course, if the petitioner is able to show that its case falls within any of the exceptions carved out in Baburam Prakash Chandra Maheshwari v. Antarim Zila Parishad, Whirlpool Corpn. v. Registrar of Trade M

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tertained by granting an interim order without assigning any reason, we are fully satisfied that the appellants have made out a case to interfere with the order passed by the writ Court, even though the same was made at the admission stage. Normally, we would have directed the appellants to raise all these points and file vacate stay petition before the writ Court. However, under the peculiar facts and circumstances of the present case, we are not inclined to do so, more particularly, in view of the decision of the Apex Court reported in (2018)3 SCC 85 as referred to supra. 12.Moreover, in this case, as it is stated that the properties of the writ petitioner were already under attachment from the year 2011 onwards and such properties were brought for public auction as early as on 28.02.2018 and the same was purchased by a successful bidder on 16.03.2018 and in whose favour, a delivery order has also been issued on 20.03.2018, we do not find any reason or justification to sustain the in

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Goods and Services Tax – Started By: – bk r – Dated:- 16-6-2018 Last Replied Date:- 25-6-2018 – I am registered with GST Haryna having a principal place of business at A with additional place of buisness at B . The additional place of business was earlier registered with the Central Excise as Registered dealer and we take handsome amount as transitional credit in respect of purchase made by Additional place of business. The department asked telephonicaly to submit the record we submit all the documents regarding stock receipt and invoices regarding puchase of material in respect of additional place of business. There is no physical business activity at the principal place of business and only documents kept here and file return . the busin

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of additional place of business,as they proposed cancellation w.e.f. 01/07/2017. there is no activity at the principal place of business. Whether the department action for cancellation of registration w.e.f. 01/07/2017 is correct and proposal regarding recovery of Trans 1 credit and other ITC availed during 01/07/2017 to March 2018 is also correct. My additional place of business is working at the declared place. whether it is necessary to have premises for principal place of business when there is no physical business from that place. . . – Reply By KASTURI SETHI – The Reply = Vacant plot found by the Department' s Officers is a very very serious matter. It indicates towards the future plan whatever may be the background or reason. It

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ditional place of business is exist. Is there any other channel to challange the deptt action – Reply By KASTURI SETHI – The Reply = Dear Querist, The Department's action is right but you will be given opportunity to defend yourself. Without affording an opportunity for personal hearing, registration cannot be cancelled. First issue is to save registration. Claiming ITC comes thereafter. Anyhow you will have to fight for your legal rights. You are to prove your bona fides. In view of circumstances and facts explained by you, I think that you will be able to prove that you have acted in a bona fide manner. Once your bona fides are established, your registration will not be cancelled and accordingly, your substantive rights of ITC will no

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Goods and Services Tax – Transitional Credit – carry forward of Credit – applicant was availing the benefit of composition scheme under the Uttarkhand VAT laws – if the applicant fulfills all the 5 co

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Service Tax – Demand of service tax – obligation on the part of adjudicating authority to decide within one year from the date of SCN – validity of demand after repealing of service tax post GST – Petition dismissed – TMI Updates – Highlights

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2018 (7) TMI 965 – AUTHORITY FOR ADVANCE RULINGS, RAJASTHAN – 2018 (14) G. S. T. L. 600 (A. A. R. – GST) – Classification of goods – Bio Fertilizer – rate of GST – Whether the Bio Fertilizer covered under the definition of Organic Manure (HSN code 3101) and What is the rate of GST applicable on Bio Fertilizer if it is not covered under Organic Manure (HSN Code: 3101)?
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Held that:- Bio fertilizer is a substance which contains living micro organisms which, when applied to the seed, plant surfaces or soil colonizes the rhizosphere or the interior of the plant and promotes growth by increasing the supply or availability of primary nutrients to the host plant. Bio-fertilizers add nutrients through the natural processes of nitrogen fixation, solubilizing phosphorus, and stimulating plant growth through the synthesis of growth-promoting substances.
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Bio-Fertilizers, other than those put up in Unit Container and bearing a brand name will covered under Schedule I of rate of GST on Go

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Manure (HSN code 3101) and What is the rate of GST applicable on Bio Fertilizer if it is not covered under Organic Manure (HSN Code: 3101) 2. The applicant has submitted a copy of The Fertilizer (Control) Order 1985, Ministry of Agriculture and Rural development regarding definition of Biofertilizer as, Biofertiliser means the product containing carrier based (solid or liquid) living microorganisms which are agriculturally useful in terms of nitrogen fixation, phosphorus solubilisation or nutrient mobilization, to increase the productivity of the soil and/or crop/ The applicant has also submitted specifications of Bio-Fertilizers. 3. Applicant s Questions(s) on which Advance Ruling is required In order to seek advance ruling that, whether (i) Whether goods (Bio Fertilizer or Organic Manure) are Exempt from GST or Not ? Personal Hearing (PH) 4. 1. In the matter personal hearing was given to the applicant, Shri B.S.Yadev, Managing Director, who appeared as representative of applicant fo

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red brand name and fall under Tariff Item 3101 and are chargeable at 2.5% CGST+ 2.5% SGST total GST of 5% . Issues to be decided: 5. The issue involved in this case is that, Whether the Bio Fertilizer covered under the definition of Organic Manure (HSN code 3101) and What is the rate of GST applicable on Bio Fertilizer if it is not covered under Organic Manure (HSN Code: 3101) Findings and analysis: 6.1 Bio fertilizer is a substance which contains living micro organisms which, when applied to the seed, plant surfaces or soil colonizes the rhizosphere or the interior of the plant and promotes growth by increasing the supply or availability of primary nutrients to the host plant. Bio-fertilizers add nutrients through the natural processes of nitrogen fixation, solubilizing phosphorus, and stimulating plant growth through the synthesis of growth-promoting substances. Major types and source of Biofertilizers are :- a. Rhizobium is a bacterium living in the root of leguminous plants in symb

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e 3101 in the Schedule I of rate of GST on Goods, comprising of List of Goods at NIL Rate states as below:- All goods and organic manure other than those put up in unit container and,-(a) bearing a registered brand name; or (b) bearing a brand name on which an actionable claim or enforceable right in a court of law is available [other than those where any actionable claim or enforceable right in respect of such brand name has been foregone voluntarily, subject to the conditions as in the ANNEXURE I] (B) Entry at HSN Code 3101 in the Schedule IV of rate of GST on Goods, comprising of List of Goods at 5% Rate states as below:- All goods i.e. animal or vegetable fertilizers or organic fertilizers put up in unit containers and bearing a brand name (C) The standard description of the HSN Code 3101 is as below:- Animal or vegetable fertilisers, whether or not mixed together or chemically treated; fertilisers produced by the mixing or chemical treatment of animal or vegetable products (D) Bio

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2018 (7) TMI 883 – AUTHORITY FOR ADVANCE RULING – RAJASTHAN – 2018 (14) G. S. T. L. 596 (A. A. R. – GST) – Levy of GST – Liason office established in India – no consideration for services charged – supply of services – place of supply – Whether the reimbursement of expenses and salary paid by M/s Habufa Meubelen B.V.(HO) to the liaison office established in India is liable to GST as supply of services, especially when no consideration for any services is charged/ paid? – Held that:- Except proposed liaison work, this office in India would not undertake any activity of trading, commercial or industrial nature nor would they enter into any business contracts in its own name without RBIs prior permission. There is no commission/ fees being charged or any other remuneration being received/ income being earned by the office in India for the liaison activities/ services rendered by it – The HO, Netherlands reimburses the expenses incurred by the applicant for their operations in India which

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mmercial or industrial nature or entering into any business contracts in its own name. Also the reimbursement claimed by them from their HO is also falling out of the purview of supply of service – As there are no taxable supplies made by the Liaison office, they are not required to get registered.
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Ruling:- If the liaison office in India does not render any consultancy or other services directly/indirectly, with or without any consideration and the liaison office does not have significant commitment powers, except those which are required for normal functioning of the office, on behalf of Head Office, then the reimbursement of expenses and salary paid by M/s Habufa Meubelen B.V. (HO) to the Liaison Office, established in India, is not liable to GST and the applicant i.e. M/s Habufa Meubelen B.V. Jaipur, is not required to get itself registered under GST. – RAJ/AAR/2018-19/05 Dated:- 16-6-2018 – Nitin Wapa (Member) and Sudhir Sharma (Member) Present for the applicant : Sh. Keshav

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y out of funds received from abroad through normal banking channels c. The office in India will not render any consultancy or any other services directly/ indirectly with or without any consideration The office in India will not have significant/ commitment powers, except than those which are required for normal functioning of the office, on behalf the Head Office. d. The office may approach any AD Category-I Bank in India to open an account to receive remittance from Head Office outside India. Credits to the account shall be the funds received from Head Office through normal banking channels for meeting expenses of the office. e. All the liabilities in India including arrears of gratuity and other benefits to employees etc. of the branch/ office will be met or adequately provided for by HO. 1.3 The liaison office does not have any independent revenue or clients. The office has been established for the purpose of liasoning with the suppliers with regard to quality control of goods. The

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(B) ISSUE FOR DETERMINATION 2. The questions/ issues before the Authority for Advance Ruling (AAR) for determination are: 2.1 Whether the reimbursement of expenses and salary paid by M/s Habufa Meubelen B.V.(HO) to the liaison office established in India is liable to GST as supply of services, especially when no consideration for any services is charged/ paid. 2.2 Whether the applicant i.e. the Liaison Office is required to get registered under GST? 2.3 If it is assumed that the reimbursement of expenses and salary claimed by liaison office is a consideration towards a service, then what will be the place of supply of such service? (C) SUBMISSION BY THE APPLICANT 3. The applicant has submitted the following submissions in their support. 3.1 There is no flow of services and there is no consideration flowing between HO and Liaison Office, as per Section 9 of the CGST Act 2017 GST is not applicable on any transaction which is not covered under the scope of the term supply' as defined

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use of money or its conversion by cash or by any other mode, from one form, currency or denomination, to another form, currency or denomination for which a separate consideration is charged. 3.4 A perusal of definition of 'service' shows that to be a 'service' under GST law there has to be charging of separate consideration. If there is no separate consideration charged then it would not qualify as 'service'. Similarly, a perusal of definition of the term supply shows that consideration is one of the essential ingredients to be a supply. 3.5 Reading the definition of 'service' and 'supply' in harmony, a conclusion can be drawn that a supply of service can be liable to GST only if a separate consideration is charged If there is no consideration then it would not be liable to GST. In the present context, there is no consideration charged by applicant from the HO in foreign country for any services There is no amount received form HO except the fun

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ce are the same entity and the liaison office do not have any entity of their own, thus there cannot be a flow of services inter-se the liaison office and head office as it amounts to service to one self. 3.7 The HO, Netherlands reimburses the other expenses incurred by the applicant for their operation The expenses are in the nature of salary, rent, security, electricity travelling etc. Since the applicant do not have any source of income it is dependent on the HO and all expenses incurred by the applicant are reimbursed by the HO For this reason also the HO and Liaison Office cannot be treated as separate persons. Since, HO and Liaison Office cannot be treated as separate person, there cannot be any flow of services between them as one cannot provide service to self and therefore, the reimbursement of expenses made by the HO cannot be treated as a consideration towards any service. 3.8 As regards the requirement of getting registered under GST, the requirement of registration under t

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ons, applicant understands that they are not liable for obtaining registration under GST. (D) Issues to be decided: 4.1 Whether the reimbursement of expenses and salary paid by M/s Habufa Meubelen B.V.(HO) to the liaison office established in India is liable to GST as supply of service, especially when no consideration for any services is charged/ paid. 4.2 Whether the applicant i.e. the Liaison Office is required to get registered under GST? 4.3 If it is assumed that the reimbursement of expenses and salary claimed by liaison office is a consideration towards a service, then what will be the place of supply of such service? (E) Personal Hearing: 5.1 Personal hearing in the matter was given to the applicant on 18/05/2018 wherein Mr. Keshav Malloo ,CA and authorised representative appeared on behalf of the applicant and he reiterated the submissions already made vide their Advance Ruling application dated 22/03/2018.He requested for decision on the case as per his submissions. (F) Findi

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be treated as separate persons. Since, HO and Liaison Office cannot be treated as separate persons, there cannot be any flow of services between them as one cannot provide service to self and therefore, the reimbursement of expenses made by the HO cannot be treated as a consideration towards any service. 6.3 The amount received from HO are the funds for payment of salary, reimbursement of expenses like rent, security, electricity, travelling, etc. No consideration is being charged by the applicant from the HO for such services. 6.4 Further the liaison office is strictly prohibited to undertake any activity of trading, commercial or industrial nature or entering into any business contracts in its own name. Also the reimbursement claimed by them from their HO is also falling out of the purview of supply of service. As there are no taxable supplies made by the Liaison office, they are not required to get registered. 6.5 In view of the submissions made by the applicant and as discussed in

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Goods and Services Tax – GST – e-way bill – Where goods move from a DTA unit to a SEZ unit or vice versa located in the same State, there is no requirement to generate an e-way bill, if the same has b

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Goods and Services Tax – GST – e-way bill – movement of goods with state (intra-state) – but transportation through another state while moving – if the goods transit through a second State while movin

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Goods and Services Tax – GST – e-way bill – transportation of goods by railways – the railways shall not deliver the goods unless the e-way bill is produced at the time of delivery. – TMI Updates – Highlights

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Goods and Services Tax – GST – registration – For the purpose of auction of tea, coffee, rubber, etc, the principal and the auctioneer may declare the warehouses, where such goods are stored, as their

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Goods and Services Tax – GST Valuation – servicing of car – Where a supply involves supply of both goods and services and the value of such goods and services supplied are shown separately, the goods

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Goods and Services Tax – GST – Valuation – job work – amortization of cost of moulds and dies etc. – if the contract between OEM and component manufacturer was for supply of components made by using t

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