Goods and Services Tax – An importer is required to pay IGST on the ocean freight. Therefore as on date, even if the importer has already paid IGST on CIF value imported goods, he is still required to
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Goods and Services Tax – No GST is leviable as on date on the said “marg sudharan shulk” charged and collected by the applicant – the applicant is liable to pay GST @ 18% on the said “Abhivahan Shulk”
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Goods and Services Tax – Applicability of notification dated 5.10.2017 issued by DIPP, Ministry of Commerce and Industry read with CBEC Circular No. 1060/9/2017-Cx. Dated 27th November 3017 – slump sa
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Goods and Services Tax – Tyres used in E-Rickshaw are not tyres of powered cycle rickshaw and hence they are required to be classified under Chapter Heading 4013 of GST Tariff, 2017 and attract 28% GST as on date. – TMI Updates – Highlights
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Goods and Services Tax – Roof Ventilators falls under Schedule-III of Notification No. 1/2017 – Central Tax (Rate) to GST Act, 2017 as amended and attracts a tax rate of 18% (CGST 9% + TGST 9%) w.e.f. 15-11-2017 – TMI Updates – Highlights
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Goods and Services Tax – The product “Hydraulic Orbital Valve” is classifiable under Tariff Heading 84.81 of the Customs Tariff Act, 1975 and Goods and Services Tax rate applicable to Tariff Heading 8
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Goods and Services Tax – Appropriate forum – Rate of GST – confectionery items – case of petitioner is that it does not come within the purview of taxes at the rate of 18% to 28%, as imposed by the re
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Goods and Services Tax – Started By: – Pnm Mohammed – Dated:- 8-6-2018 Last Replied Date:- 11-6-2018 – We have filed GSTR-1 with a particular invoice as B2C instead of B2B and would request you to kindly advice how the same can be rectified so that the recipient can take the input credit. Thank you in advance – Reply By Himansu Sekhar – The Reply = FAQQ. It is envisaged that many customers may not provide the GSTIN to the Banks in time. In such cases the Banks / insurers would report the supply
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Goods and Services Tax – Started By: – manish miglani – Dated:- 8-6-2018 Last Replied Date:- 9-6-2018 – Hi everyone. I have query specific to meal cards. Is the benefit which is given to the employees in the form meal cards attracts GST to the employer and also the employee in any way.there is lot of confusion in this regards and appreciate if you could help hereRegardsManishregardsManish – Reply By Rajagopalan Ranganathan – The Reply = Sir, As per Section 17 (5) (b) (i) of CGST Act, 2017, food and beverages, outdoor catering, beauty treatment, health services, cosmetic and plastic surgery except where an inward supply of goods or services or both of a particular category is used by a registered person for making an outward taxable supply
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Goods and Services Tax – Started By: – Sudha Sharma – Dated:- 8-6-2018 Last Replied Date:- 1-10-2018 – As per GST norms GST for HSN Code 38220090 or 3822 is 12% but some are charged 5% instead of 12%. Is is possible to purchase the material on 12% GST slab and sale the same on 5% GST slab with same HSN Code. Where I can drop the image of invoices for same. – Reply By KASTURI SETHI – The Reply = Complete details of products of both invoices are required. Details are sufficient, instead of copies of invoice. There must be some difference between both. – Reply By Rajagopalan Ranganathan – The Reply = Sir , All diagnostic kits and reagents fall under heading 3822. These kits are attracting CGST @ 6% as per Sl. No. 80 of Schedule II of Notifica
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DGFT – Extension to Integrated Goods and Service Tax (IGST) and compensation Cess exemption under EOU scheme till 01.10.2018 — Amendments to Foreign Trade Policy 2015-20 – TMI Updates – Highlights
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Goods and Services Tax – Started By: – SURYAKANT MITHBAVKAR – Dated:- 8-6-2018 Last Replied Date:- 11-6-2018 – The E-Way Bill is not required to be filled where the distance between the consigner or consignee and the transporter is less than 50 Kms and transport is within the same state.Is there any notification for the above. – Reply By Ramesh Patodia – The Reply = Dear Mr. Suryakant, E-way bill is required in all cases of movement of goods, the consignment value of which exceeds ₹ 50,000/- irrespective of the distance between the consignor or consignee and the transporter. However, some instances have been specified in Rule 138(14) of the CGST Act, 2017 where no e-way bill shall be required and such exclusions nowhere specifies the
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Goods and Services Tax – Started By: – SAFETAB LIFESCIENCE – Dated:- 8-6-2018 Last Replied Date:- 9-6-2018 – Dear Experts, We are a GST registered company/firm in Pondicherry(34). Our company car got repaired at Chennai(33) while we went there. They mentioned our GST number correctly but charged CGST+SGST. Shall we take ITC – Reply By ShaikhAbdulSamad Ahmad – The Reply = No ITC is not permitted. – Reply By YAGAY and SUN – The Reply = There is no provision in GST Laws to avail the ITC of CGST +
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Goods and Services Tax – GST – Disc Brake Pads and Shoes are required to be classified under subheading 8708 of GST Tariff, as other parts and accessories of the motor vehicles of headings 8701 to 870
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Goods and Services Tax – GST – By: – Mr. M. GOVINDARAJAN – Dated:- 8-6-2018 – GST practitioners Section 2 (55) of the Central Goods and Services Tax Act 2017 ( Act for short) defines the expression goods and services tax practitioner as any person who has been approved under section 48 to act as such practitioner. Powers of Central Government Section 48(1) gives powers to the Central Government to make rules on- the manner of approval of GST practitioners; their eligibility conditions; duties and obligations; manner of removal; and other conditions relevant for their functioning. Functions of GST practitioners Section 48(2) read with Rule 83 (8) provides the functions of the GST Practitioners on behalf of the registered persons, as detailed below- to furnish the details of outward supplies under section 37; to furnish the details of inward supplied under section 38; to furnish returns under section 39; to furnish annual return under section 44; to furnish final return under section 45
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lent examinations having a degree in commerce, law, banking including higher auditing or business administration or business management from any Indian University established by any law for the time being force in law; or a degree examination of any Foreign University recognized by any Indian University as equivalent to the degree examination as mentioned above; or any other examination notified by the Government on the recommendations of the Council, for this purpose; or has passed any of the following examinations- final examination of Institute of Chartered Accountants of India; or final examination of Institute of Cost Accountants of India; or final examination of Institute of Company Secretaries of India. Enrolment A person who intends to act as GST Practitioner, he has to apply in Form GST PCT – 01 electronically through the common portal. The officer authorized in this behalf shall, after making such enquiry as he considers necessary either enroll the applicant as GST Practition
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x, dated 28.05.2018, the Central Government notified the National Academy of Customs, Indirect Taxes and Narcotics, Department of Revenue, Ministry of Finance, Government of India, as the authority to conduct the examination. Disqualification If any goods and services tax practitioner is found guilty of misconduct in connection with any proceedings under the Act, the authorized officer may, after giving him a notice to show cause in FORM GST PCT-03 for such misconduct and after giving him a reasonable opportunity of being heard, by order in FORM GST PCT -04 direct that he shall henceforth be disqualified under section 48 to function as a goods and services tax practitioner. Any person, who is aggrieved against the above said order, may file an appeal to the Commissioner within 30 days from the date of issue of such order. Authorizing GST Practitioner Any registered person may, at his option, authorize a goods and services tax practitioner on the common portal in FORM GST PCT-05 or, at
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e before such authority, if required, a copy of the authorization given by such person in FORM GST PCT-05. Consent of registered person Where any application relating to a claim for refund or an application for amendment or cancellation of registration has been submitted by the goods and services tax practitioner authorized by the registered person, a confirmation shall be sought from the registered person and the application submitted by the said practitioner shall be made available to the registered person on the common portal and such application shall not be proceeded with further until the registered person gives his consent to the same in Form GST PCT – 05. Obligation of registered person Before confirming submission of any statement prepared by the goods and services tax practitioner, the registered person is to ensure that the facts mentioned in the return are true and correct. The responsibility for correctness of any particulars furnished in the return or other details filed
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Goods and Services Tax – GST – By: – Monarch Bhatt – Dated:- 8-6-2018 – In this series, I am trying to cover the issues which are generally faced by the assessee at large and such issues are chosen based on the queries raised in the various seminars delivered by me. Query: The hotel situated in Mumbai is providing banquet services and while issuing an invoice to one of their guest who is registered in Delhi, hotel has charged IGST on the banquet services. However, auditor of the hotel is saying that hotel shall charge CGST and SGST. Hotel wants to know: As per the provisions relating to the place of supply of goods or services, whether hotel shall charge IGST or CGST and SGST? Since hotel has already issued the invoice, how they can rectify the mistake wherein, instead of charging CGST and SGST hotel has charged IGST? Reply: As per the provisions relating to the place of supply of goods or services, hotel is required to charge CGST and SGST or IGST. The query is with respect to the pl
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……. The place of supply of services,- (a) directly in relation to an immovable property, including services provided by architects, interior decorators, surveyors, engineers and other related experts or estate agents, any service provided by way of grant of rights to use immovable property or for carrying out or co-ordination of construction work; or (b) by way of lodging accommodation by a hotel, inn, guest house, home stay, club or campsite, by whatever name called, and including a house boat or any other vessel; or (c) by way of accommodation in any immovable property for organising any marriage or reception or matters related thereto, official, social, cultural, religious or business function including services provided in relation to such function at such property; or (d) any services ancillary to the services referred to in clauses (a), (b) and (c), shall be the location at which the immovable property or boat or vessel, as the case may be, is located or intended to be locate
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Tax (MH SGST). The hotel has charged IGST while issuing an invoice to the receiver. Therefore, hotel shall issue credit note for the amount wrongly charged as IGST and Debit note shall also be issued for recovery of CGST and Maharashtra SGST. Query: M/s. Solid Construction is situated at Mumbai having Goods & Services Tax (GST) registration at Mumbai, has started new construction project at Bangalore, for which M/s. Solid Construction has appointed M/s. Fair Consultancy as an Architect. M/s. Fair Consultancy is situated at Mumbai and having registration under the Goods & Services Tax (GST) for their Mumbai office and they do not have any other branches across the country. In this scenario M/s. Fair Consultancy wants to know, whether architectural services provided by them is liable for the payment of Central Goods & Services Tax (CGST) & Maharashtra States Goods & Services Tax (SGST) or Integrated Goods & Services Tax (IGST)? Reply: M/s. Fair Consultancy is rend
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2018 (6) TMI 1575 – KARNATAKA HIGH COURT – TMI – Anticipatory bail – arrest of the petitioner by the respondents or their sub-ordinate officers pursuant to the summons dated 15.11.2017 – Held that:- The apprehension of arrest in a non-bailable offence is a sine qua non to maintain a petition under Section 438 of Cr.P.C.
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It is not the case of the petitioner that he has been apprehending his arrest in any non-bailable offence and therefore, on the face of it, the provisions of Section 438 of CR.P.C. do not get attracted to the facts of this case. A reading of the summons issued by the respondents indicates that the petitioner has been asked to appear before the respondents in person along with the documents for inquiry in connection wi
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sion Unit-V, GST West Commissionerate, Bangalore. 2. Heard the learned Counsel for the petitioner and learned Counsel for the respondents. 3. Undisputedly, summons has been issued to the petitioner by the Superintendent AE-V of the office of the Commissioner of Central Tax. To appreciate the contention urged by the petitioner in this regard, it may be necessary to refer to the summons. It reads as under: C.No.IV/06/32/2017 Date:15.11.2017 SUMMONS TO WITNESS Mr.Ranganath Adiga K B K MariyappaCharities, PJMB Complex 1st floor, 1st cross, 3rd Main Chamrajpet, Bangalore-560 018 Whereas, I C.Krishnappa, Superintendent, Anti-Evasion Unit-V, GST West Commissionerate, Bangalore, empowered in the prevention of evasion of Service Tax consider your at
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-compliance with this summons is an offence under Section 174 & 175 of the Indian Penal Code, 1860. You are warned that giving false evidence in these proceedings is an offence punishable under Section 193 of the Indian Penal code, 1860. SCHEDULE 1. Copies of return filed for year 2012-13 to 2017-18 2. Details of payment of Service Tax from 2012-13 to 2017-18 3. Statement of Bank account for year 2012-13 to 2017-18 4. Balance Sheet to 2012-13 to 2016-17 Given under my name and seal of office on 15.11.2017. 4. The apprehension of arrest in a non-bailable offence is a sine qua non to maintain a petition under Section 438 of Cr.P.C. 5. It is not the case of the petitioner that he has been apprehending his arrest in any non-bailable offence
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2019 (1) TMI 1389 – AUTHORITY FOR ADVANCE RULING – ANDHRA PRADESH – 2018 (16) G. S. T. L. 310 (A. A. R. – GST) – Admissibility of input tax credit of tax paid or deemed to have been paid on vehicles – Whether they can utilize/ refund the ITC which is readily available in GST Portal, for the vehicles purchased by them for the purpose of their core business activity?
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Held that:- The Input Tax Credit on the vehicles purchased by the applicant for the purpose of their business will fall under Section 17(5) – It is clear from the plain reading of the section, that the goods referred by the applicant do not fall under the exceptions referred in Section 17(5) of CGST / APGST Act, 2017. Hence the applicant is not entitled for claim of ITC.
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le in GST Portal, for the vehicles purchased by them for the purpose of their core business activity?" 3. On verification of basic information of the applicant, it is observed that the applicant falls under State jurisdiction, i.e. Brodipet Circle, of Narasraopet Division (as per the bifurcation lists of taxpayers between the Centre and State in the prescribed manner), accordingly, the application has been forwarded to the jurisdictional officers and also a copy marked to the Central Tax authorities to offer their remarks as per the Section 98(1) of CGST/APGST Act, 2017, and requested for the information. 4. In response to this communication, the concerned jurisdictional officer, offered their remarks, and stated that there were no pro
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d by the applicant, and after careful examination of the said issue, this authority is of the opinion, that the Input Tax Credit on the vehicles purchased by the applicant for the purpose of their business will fall under Section 17(5), and given the ruling accordingly. The text of Section 17(5) is as under. "Notwithstanding anything contained in sub-section (1) of section 16 and sub-section (1) of section 18, input tax credit shall not be available in respect of the following, namely :- (a) motor vehicles and other conveyances except when they are used (i) for making the following taxable supplies, namely :- (A) further supply of such vehicles or conveyances ; or (B) transportation of passengers; or (C) imparting training on driving,
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Customs – PUBLIC NOTICE NO. 54/2018 – Dated:- 8-6-2018 – GOVERNMENT OF INDIA OFFICE OF THE COMMISSIONER OF CUSTOMS (AIRPORT & ADMN) AIR CARGO COMPLEX, NSCBI AIRPORT, KOLKATA: 700 052. F. NO. S41(Misc) – 64/2017CCX/Pt Date: 08.06.2018 PUBLIC NOTICE NO. 54/2018 Subject: Refund of IGST on export of Goods-Extension of date in SB005 alternate mechanism cases and Clarification in other cases reg. Attention of the Exporters/Customs Brokers is invited to CBIC's Circular Nos. 15/2018-Customs dated 06.06.2018, 05/2018-Customs dated 23.02.2018 and 08/2018-.Customs dated 23.03.2018 wherein an alternative mechanism with officer interface to resolve invoice mismatches was provided for the shipping bills filed till 28.02.2018. Although the cases
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y mentioned in the Shipping bill and the one filing GSTR-1/GSTR-3B. Board has examined the issue and it has been decided to provide a correction facility in cases where although GSTIN of both the entities are different but PAN is same. This happens mostly in cases where an entity filing Shipping bill is a registered office and the entity which has paid the IGST is manufacturing unit/other office or vice versa. However, in all such cases, entity claiming refund (one which has filed the Shipping bill) will give an undertaking to the effect that its other office (one which has paid IGST) shall not claim any refund or any benefit of the amount of IGST so paid. The undertaking shall be signed by authorized persons of both the entities. This unde
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2018 (11) TMI 399 – AUTHORITY FOR ADVANCE RULING, ANDHRA PRADESH – TMI – Levy of GST – sale of tobacco leaves received from farmers made by Commission Agent in an auction – turnover is less than ₹ 20 Lakh – liability to pay GST – Reverse charge mechanism – liability to pay GST when commission agent sell the tobacco leaves received from trader in an auction – Commission Agent receives tobacco from farmers and sell them within the state – value of a supply of goods and/or services.
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Held that:- The services provided by a commission agent for sale or purchase of agricultural produce is having NIL rate of GST – Undoubtedly, tobacco leaves are agricultural produce and therefore, a commission agent dealing in sale and purchase of tobacco leaves shall be exempted from GST.
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The above NIL rate of GST on services provided by a commission agent for sale and purchase of agricultural produce is irrespective of who is the principal i.e. whether it is a farmer or a trader. As long a
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acco from farmers and sell them within the state – Held that:- As the above service is exempt from tax by the entry No:24 of Notification No: 11/2017-Central Tax(Rate). hence. the commission agent is not liable to collect GST. – AAR/AP/03(GST)/2018 In Application No. 06/AAR/GST/2018 Dated:- 8-6-2018 – SRI. J.V.M SARMA AND SRI. AMARESH KUMAR, MEMBER Present for the Applicant: Sri Vallabhaneni Mohan Rao, Present for the Jurisdictional Officer: Remarks Received Note: Under Section 100 of the APGST Act 2017, an appeal against this ruling lies before the appellate authority for advance ruling constituted under section 99 of APGST Act 2017, within a period of 30 days from the date of service of this order. 1. M/s. JAYALAKSHMI TOBACCO COMPANY, (hereinafter also referred as an applicant), having GSTIN:37B1WPS7726L1Z2 are commission agents dealing with tobacco leaves. The applicant has various business activities, such as procuring tobacco leaves from farmers as well as from traders and acting
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he application has been forwarded to both the jurisdictional officers (State Tax & Central Tax) to offer their remarks as per the Sec. 98(1) of CGST / APGST Act 2017, and requested for their remarks and also for relevant records. In response, the jurisdictional officer i.e Assistant Commissioner(ST), Indrakeeladri Circle, No. I Division, Vijayawada offered their remarks through an e-Mail, dated : 29th March 2018. In their remarks the jurisdictional officer stated that, there is no proceedings passed by the authority and no proceeding pending before any authority/forum relating to the applicant. 4. Based on the remarks received from the jurisdictional officer, this authority feels necessary to hear the applicant for admitting the application and to pronounce the advance ruling. Accordingly, a personal hearing was fixed on 04.04.2018. In response to the notice, Sri.Vallabhaneni Mohana Rao, authorized representative on behalf of the applicant, had attended and made oral submissions, a
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der issued accordingly ORDER. After having several deliberations basing on the material on record, the members of this authority expressed different views on the issues raised by the applicant and found no consensus to pronounce any ruling. As per sub-section 2 of section 98, CGST/APGST Act,2017, this authority is referring this application to the Appellate Authority for further action on the issues raised by the applicant. Hence, to be treated as ruling is not issued on this application. Accordingly the application disposed off. Findings of the State Member : 1. M/s. JAYALAKSHMI TOBACCO COMPANY, (hereinafter also referred as an applicant), having GSTIN:37BIWPS7726L1Z2 are commission agents dealing with tobacco leaves. The applicant has various business activities, such as procuring tobacco leaves from farmers as well as from traders and acting either as commission agent or as seller as the case may be. 2. The applicant has filed an application in Form GST ARA-01, dated 14.03.2018, for
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called, who carries on the business of supply or receipt of goods or services or both on behalf of another; Section 2(6) aggregate turnover means the aggregate value of all taxable supplies (excluding the value of inward supplies on which tax is payable by a person on reverse charge basis), exempt supplies, exports of goods or services or both and inter-State supplies of persons having the same Permanent Account Number, to be computed on all India basis but excludes central tax, State tax, Union territory tax, integrated tax and cess; Sec. 24. Notwithstanding anything contained in sub-section (1) of section 22, the following categories of persons shall be required to be registered under this Act (vii) persons who make taxable supply of goods or services or both on behalf of other taxable persons whether as an agent or otherwise; Section 7(1) For the purposes of this Act, the expression supply includes:- (c) the activities specified in Schedule I, made or agreed to be made without a co
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Compensation to States) Act, if charged separately by the supplier; (b) any amount that the supplier is liable to pay in relation to such supply but which has been incurred by the recipient of the supply and not included in the price actually paid or payable for the goods or services or both; (c) incidental expenses, including commission and packing, charged by the supplier to the recipient of a supply and any amount charged for anything done by the supplier in respect of the supply of goods or services or both at the time of, or before delivery of goods or supply of services; (d) interest or late fee or penalty for delayed payment of any consideration for any supply: and (e) subsidies directly linked to the price excluding subsidies provided by the Central Government and State Governments. Explanation.-For the purposes of this sub-section, the amount of subsidy shall be included in the value of supply of the supplier who receives the subsidy. After due verification of the material on
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er S.No. 3 of Notification 04/2017 – Central Tax (Rate), Dated :28th June 2017, Reverse Charge is applicable on tobacco leaves on receipt of the goods. by a registered person from agriculturist. Issue. No.4 Who has to pay GST when commission agent sell the tobacco leaves received from trader in an auction? Can commission agent collect GST from buyers and pay or not? Ruling : The transaction referred to in falls under acting as an agent on behalf of other taxable persons, who makes taxable supply of goods as an agent. As per clause VII of Section 24 of CGST/ APGST Act 2017, the Commission Agent has to get registered under the Act and has to pay GST when sell the tobacco leaves received from trader in an auction, and can collect GST from buyers. Issue.No.5 The Commission Agent receives tobacco from farmers and sell them within the state. He takes commission from farmers for his services and it is less than ₹ 20 Lakh in a year. Will the commission Agent is liable to collect GST in t
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r receives tobacco from farmers and traders and sell them in an auction and takes commission his services. The applicant has raised following questions before the Authority for Advance Ruling: 1. Will GST be applicable on sale of tobacco leaves received from farmers made by Commission Agent in an auction and his turnover is less than ₹ 20 Lakh? 2. In case, there is GST in the above situation, who has to pay the tax? 3. Will reverse charge provisions applicable for tobacco leaves or not? 4. Who has to pay GST when commission agent sell the tobacco leaves received from trader in an auction? Can commission agent collect GST from buyers and pay or not? 5. The Commission Agent receives tobacco from farmers and sell them within the state. He takes commission from farmers for his services and it is less than ₹ 20 Lakh in a year. Will the Commission Agent is liable to collect GST in this situation? 2.1 I have gone through the facts of the case as given by the applicant i.e. the app
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harvesting, threshing, plant protection or testing; (b) supply of farm labour; (c) processes carried out at an agricultural farm including tending, pruning, cutting, harvesting, drying, cleaning, trimming, sun drying, fumigating, curing, sorting, grading, cooling or bulk packaging and such like operations which do not alter the essential characteristics of agricultural produce but make it only marketable for the primary market; (d) renting or leasing of agro machinery or vacant land with or without a structure incidental to its use; (e) loading, unloading, packing, storage or warehousing of agricultural produce; (f) agricultural extension services; (g) services by any Agricultural Produce Marketing Committee or Board or services provided by a commission agent for sale or purchase of agricultural produce. 2.2 As seen from above, services provided by a commission agent for sale or purchase of agricultural produce is having NIL rate of GST. Further the definition of agricultural produce a
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e referred Notification. 3. It would be pertinent for me discuss another entry in the same Notification 11/2017-Central Tax (Rate), dated 23.06.2017. Sl.No. 5 having 9% rate of CGST (18% GST). The same reads as: Services in wholesale trade. Explanation-This service does not include sale or purchase of goods but includes: Services of commission agents, commodity brokers, and auctioneers and all other traders who negotiate whole sale commercial transactions between buyers and sellers, for a fee or commission Services of electronic whole sale agents and brokers, Services of whole sale auctioning houses. I find that Sl.No. 5 of referred Notification is for services of Commission agents. which is peged at 18% GST (9+9). However, applicant being a Commission Agent dealing in sale and purchase of agricultural produce (tobacco leaves), I find Sl.No. 24 of the Notification having NIL rate of Tax is applicable on them. 4. AS far as Registration is concerned, Section 23 of CGST Act stipulates tha
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2018 (10) TMI 1515 – AUTHORITY FOR ADVANCE RULING – MAHARASHTRA – 2018 (18) G. S. T. L. 658 (A. A. R. – GST) – Classification of goods – Valuation – ElectroInk supplied along with consumables under GST – composite supply/principle supply – naturally bundled supplies – Determination of time and value of supply of ElectroInk with consumables under the indigo press Contract – Continuous supply – POT Rules MSGST Act.
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Classification of ElectroInk supplied along with consumables under GST – Held that:- Under the GST Law the taxable event is supply of goods or services or both. The tax is payable on every supply unless otherwise exempted. The law notifies individual supply of goods and services with applicable rate of tax. Where supply consists individually of goods and services there is no confusion or problem. But with the advent of different models of business certain supplies consist of combination of goods or services or both. It is therefore required to be ascertained to apply th
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ndigo Press Product Line under the same Supplies purchase program.” This clause of the purchase agreement assume significance of the factual background that there exists a notable difference between the conventional offset and HP Indigo Digital offset Printing Technology. The terms of the contract as mentioned above clearly indicate that the recipient of the supply has no option to select individual supply but to accept it as bundled supply. Thus the transaction of supply of ElectroInk with consumables cannot be considered as Naturally bundled Supply but a compulsory supply – the transaction cannot be said to be naturally bundled supply.
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The applicant has submitted the consumption pattern of Electro ink along with consumables supplied to authorised reseller. From this consumption pattern it is noticed that if the requisite quantity of ink and other consumables are supplied to the printing machine for first time, the other consumables are not required to be supplied compulsorily.
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he supplies can be supplied separately as they are not dependent on each other and one supply of goods does not occasion the supply of other goods.
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As the transaction satisfies all the ingredient of 'mixed supply' the transaction would come and fall under 'mixed supply' as defined in clause 74 of section 2 of the GST Act.
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Determination of Time and Value of supply of ElectroInk with consumables under the Indigo press contract – Held that:- The supply of goods in the present case fulfil the basic tenets of 'continuous supply' and therefore the impugned supply is 'continuous supply of goods 'as defined in clause 32 of section 2 of the GST Act.
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The goods are supplied by the applicant on regular or periodic basis where successive statements of account are raised within 15 days from the end of each calendar month with respect to supplies made in the preceding month. Section 31 (4) is the relevant section where provisions are made for issue of invoice in case of continuous s
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e time of supply of Electro Ink supplied along with consumables under the indigo press contract would be the earliest date between the date of invoice or the date of receipt of payment. As regards the value of supply of Electro Ink supplied with consumables under the Indigo Press Contract would be the transactions value as reflected in the invoice issued u/s 31(4) of the GST Act. – GST-ARA-38/2017-18/B-45 Dated:- 8-6-2018 – SHRI B.V. BORHADE, AND SHRI PANKAJ KUMAR, MEMBER PROCEEDINGS (Under section 98 of the Central Goods and Services Tax Act, 2017 and the Maharashtra Goods and Services Tax Act, 2017) The present application has been filed under section 97 of the Central Goods and Services Tax Act, 2017 and the Maharashtra Goods and Services Tax Act, 2017 [hereinafter referred to as "the CGST Act and MGST Act"] by HP India Sales Private Limited, the applicant, seeking an advance ruling in respect of the following questions: i. Classification of ElectroInk supplied along with
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xable person registered under Section 22 of the Maharashtra State Goods and Services Tax Act, 2017 (referred as "MSGST Act") read with Rule 24 of the Maharashtra Goods and Services tax Rules, 2017 (referred as "MSGST Rules"), having GSTIN 27AAACC9862F1ZI, are engaged inter alia in providing printing supplies to be used in HP's Indigo press machines supplied to customers. 2. The HP Indigo digital printing press (hereinafter referred as HP Indigo) is a printing press uniquely designed for ensuring best quality prints in the industry along with wide colour gamut, substrate versatility, speed, productivity and with the ability to vary every printed copy. 3. The HP Indigo machine is based on a unique digital offset colour technology specially designed to cater the printing requirements of large scale print service providers. The HP Indigo printers are significantly different from other office and industrial use printers due to the specialized liquid ink (hereinafter
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f such goods to various customers across India. 8. The terms of contract between the Applicant and the authorized reseller stipulates the conditions, prices, discount, mode of receiving orders, billing and payment terms in relation to supply of ElectroInk with consumables. Importantly, the contract stipulates that the supplies shall be the property of the Applicant till such time the supplies are utilized in the presses by the customer for effecting prints. 9. Further, the ElectroInk along with the consumables are moved by the Applicant to the authorised reseller locations in the States of Tamil Nadu, Gujarat and Punjab under a delivery challan along with the necessary road permit, where applicable. 10. Pursuant to the same, such goods are transported by the authorized reseller to the respective customer locations as segregated geographically across India. The arrangement is diagrammatically explained below: 12. The Applicant has contracted with authorized resellers for making supplies
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or the month. 17. Accordingly, when the running statement of accounts are collated for the respective end customers, the Applicant raises a consolidated invoice for the click charges on the reseller. Sample copy of the invoice raised by the Applicant on the reseller is enclosed as Annexure 4. 18. Also the reseller raises an invoice on each of the end customers based on the contractual arrangement between the reseller and the end customer. Sample copy of the invoice raised by the reseller on the end customer is enclosed as Annexure 5. QUESTION ON WHICH ADVANCE RULING IS SOUGHT 19. In light of the above facts disclosed, the Applicant wishes to seek clarification on the following matters from the Authority for Advance Ruling established in the State of Maharashtra under the MSGST Act: I. Classification of ElectroInk supplied along with consumables under GST, and II. Determination of time and value of supply of ElectroInk with consumables under the indigo press contract STATEMENT CONTAININ
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ply 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". ii. Further, Section 8 of the MSGST Act provides that the nature of a composite supply shall be treated as a supply of the principal supply contained therein. iii. In this regard, Section 2(90) of the MSGST Act defines principal supply as "the supply of goods or services which constitutes predominant element of a composite supply and to which any other supply forming part of that composite supply is ancillary" iv. Accordingly, the nature of the predominant element supplied in a composite supply shall be deemed as the nature of the entire value of supply and levying the rate of GST as applicable on the principal supply. v. Drawing inference from the above legal provisions, a bundled supp
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Point 6 of Section A – Definitions and appendices at page 2 "6. Imaging Products" mean ElectroInk®, Photo Imaging plates, binary ink developer (BIDs), printing blankets, recycled agent, imaging agent and imaging oil. Accordingly, the supplies involved in HP Indigo press arrangement comprises of supply of two or more taxable goods being made thereof. Further, the term used in the definition, "or any combination thereof indicates that any combination of supply of two or more goods as a bundle satisfies the requirement for being classified as a composite supply. – The supply of such goods is naturally bundled Point 1 of Section C-SUPPLIES at page 3 "3. The Indigo Presses require consistently superior quality Supplies which include Imaging Products, accessories and Operator Maintenance Parts. Additionally, the document briefing on the Indigo Press Supply Technology as enclosed herewith as Annexure 1 details the printing cycle at page 2 which provides for the manner
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that Reseller shall purchase all of the Supplies required by it for each Indigo Press Product Line under the same Supplies purchase program." Point "a" of Section G (1) – TIER PROGRAM FOR PURCHASE OF SUPPLIES BY RESELLER at page 4 a. "Click" means a chargeable unit for a Single Color Separation transferred onto substrate, except in the case of textured effect printing, where it is the action of texturing by applying pressure between the substrate and the mold. A Click unit may vary depending on the press model. The Indigo press machine requires all the Supplies do be present in the device and collectively consumed. The invoicing for such supplies is also done on a per click basis, referring to the charges for a combined use of the ElectroInk and all the other consumables supplied. Therefore, the Electolnk along with the consumables are naturally bundled. -The goods or services are supplied in conjunction with each other in the ordinary course of business Point
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se of textured effect printing, where it is the action of texturing by applying pressure between the substrate and the mold. A Click unit may vary depending on the press model. Therefore, drawing reference from the above extracts of the contract, the Indigo press supplies are conisidered as being supplied in conjunction to each other based on the following facts: The Supplies are received by the authorised reseller from the Applicant as a bundle and are as-is supplied to the end customer; Further, the bundled supply of goods is made at the same point of time and is not split over different time periods; The billing for such supplies by the Applicant to the authorised reseller and by the authorised reseller to the end customer is also done on a consolidated basis for the entire bundled value of goods consumed and not on per category of goods supplied basis. Further, the test of supplies being made in the ordinary course of business is satisfied depending on the frequency of the transact
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digo press which cannot be supplied without the "printing ink" being loaded therein. Additionally, other goods supplied in this regard are mere ancillary products to the ElectroInk in order to support the printing of the final image onto the paper. The Applicant also submits that the HP indigo digital offset colour technology guarantees the best quality prints in the industry. Further, the liquid ink supplied in this regard is unique to indigo presses to ensure wide and accurate images matching the media. Accordingly, the printing ink supplied herein is the predominant element to ensure execution of entire supply contract by the Applicant Additionally, every product supplied herein has a separate lifespan independent of each other. Accordingly, it can be inferred that consumables are necessary only to provide support function to the activity of printing and ensuring image processing is smoother and faster. Also, the mode of billing in relation to such supplies is based on the
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of printing ink, being the principal supply therein. II. Determination of time and value of ElectroInk supplied along with consumables under the Indigo press contract 21. With regards the determination of time and value of ElectroInk supplied along with consumables under GST, the Applicant makes the following submissions: i. Considering the facts disclosed above in relation to ElectroInk supplied with consumables under GST, the Applicant understands that such goods qualify within the definition of "continuous supply of goods" as prescribed under Section 2(32) of the MSGST Act and reproduced hereunder: " supply of goods which is provided, or agreed to be provided, continuously or on recurrent basis, under a contract, whether or not by means of a wire, cable, pipeline or other conduit, and for which the supplier invoices the recipient on a regular or periodic basis and includes supply of such goods as the Government may, subject to such conditions, as it may, by notificati
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se transferring such Supplies to any other third party. However, in case of any non-compliance on the part of the Customer with regard to the above-mentioned the same shall be solely to the account of the Customer. If this Agreement or a relevant purchase order is cancelled or terminated, HP will require Reseller to inventory the Supplies and HP shall bill Reseller for Supplies on hand at the Site and not returned to HP within the time specified by HP…" iii. The above clause suggests that the goods delivered by the Applicant to the Customer through the Reseller shall remain the property of the Applicant and shall be passed on to the Customer through the Reseller only upon invoicing for the same and receiving payment. Therefore the supply of goods is being made on a recurrent basis based on the invoicing by the Applicant. iv. Since such supplies made by the Applicant are on a continuous basis being in accordance with the terms of the contract entered thereunder and requiring the
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Supplier Reseller Agreement (attached as Annexure-2), successive statement of account shall be raised within 15 days from the end of each calendar month with respect to supplies made in the preceding month. A sample copy of the successive statement of account is enclosed as Annexure 4. Point 5 of Section G – at page number 5 "5 " Within 15 days from the end of each calendar month HP shall issue an invoice to Reseller for the supplies utilised under the Tier Program in the preceding month" viii. Therefore, the Applicant understands that "supply" under GST law is not effected at the time of removal of goods from its registered location in Mumbai, but when the goods are used by the customer and correspondingly a statement of accounts is raised based on the number of clicks made by the customer in the preceding month. ix. In this regard, the Applicant understands that the time of supply involved in respect of supply of ElectroInk with consumables to authorised rese
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Digital Offset Colour printing process and its unique features. Further, it details the principle characteristics of its predominant component consumed in the printing process, the HP Indigo's liquid ink – ElectroInk technology along with its uses. Brief on Digital Offset Colour Technology The HP Indigo process is fully digital from image creation to printing. The printed image is created directly from digital data, avoiding the use of any "analogue" intermediate media. Further, due to its fully digital process, every image can be a new one, enabling information to be varied as required. A notable difference between conventional offset and HP Indigo digital offset printing technology is that HP Indigo's ink-ElectroInk, transfers from the blanket to the substrate with virtually no ink splitting that characterizes conventional offset printing systems. This enables the creation and transfer of a different image each printing cycle. Further HP Indigo technology enables d
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own to 1-2 microns. These small particles dispersed in the liquid carrier allow for higher resolution, uniform gloss, sharp image edges, and very thin image layers. The thin image layer closely follows the surface topography of the paper. This gives a highly uniform finish, complementing the paper and resulting in a similar texture both on the image and on the non-image areas. The HP Indigo ElectroInk is available in an increasing range of colours. ElectroInk is supplied in a concentrated form that is loaded into the press in cartridges in a "clean hands" operation. Inside the press it is fed into ink supply tanks, diluted with oil and combined with a charging control fluid, to form a fluid mixture of carrier liquid and colourant particles ready for printing. The mixing is done under accurate automated control, resulting in a stable ink with nearly constant physical traits, leading to consistent prints. Furthermore, ElectroInk incorporates pigments which are the same as offse
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ment with the hot blanket. The entire printing cycle is designed in a manner to maximize productivity and versatility. The cycle revolves around the use and consumption of the HP Indigo's liquid ink – ElectroInk, to yield the best in the class prints. The ancillaries to the printing process consisting of products such as PIP, BID, blanket and other machining products complement and support the transfer of ink into the paper in the most optimum manner to produce quality prints. Summary The HP Indigo presses due to their unique technology lead to productivity, by its ability to change data, colour, and substrate at will and with no time penalty. The HP Indigo ElectroInk process is inherently faster than any DEP process by nearly an order of magnitude. The printing presses are robust and designed for 24/7 production. Critical process elements are automatically controlled by the press and reduce operator intervention. While competing with offset printing for print quality, the digital
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make the following additional submissions: 1. Latest copy of agreement entered between Applicant and Reseller for supply of indigo press consumables The Applicant wishes to submit that the terms of reseller agreement (copy provided as Annexure 2 to the Statement of facts submitted along with the application for advance ruling) entered on July 19, 2013 stands valid as on date. Further, any rate revision required to the supply program are agreed mutually between the Applicant and the reseller from time-to-time. However, in this regard no amendment is made to the master agreement dated July 19, 2013. 2. Break-up of revenue earned by Applicant during the last financial year between tier and a-Ia-carte program The Applicant wishes to submit break-up of revenue earned during the F.Y. 2017-18 for supply of consumables used in Indigo press machines, between tier (click) and a-la-carte model as under: Sl. No. Supply model Revenue earned (in mns.) % to total revenue 1 Tier (click) Model 1,179.3
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dopt the same click based billing model in relation to consumables supplied for undertaking print activity. However, the consumables supplied in relation to such printers vary differently from consumables supplied for effecting print from HP indigo machines. Further, the Applicant wishes to submit that globally where the local regulations permit, the indigo press consumables supplied by HP are charged on a per click basis, based on the actual consumption of goods. 4. Nature of supply under the tier program In addition to the submissions made in the statement of facts filed along with the application for advance ruling, the Applicant wishes to submit that the tier program of the indigo consumables supply model is a composite supply made under the GST Act. The supply satisfies all of the following conditions prescribed in this regard: 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: The HP
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role in ascertaining whether such supplies qualify as being naturally bundled. In this regard, the Applicant wishes to draw reference to the relevant extracts of the reseller agreement (submitted as Annexure 2 to the statement of facts) to prove the intention of the parties of the contract: Section 1, Page 1 "Authorization to resell Indigo supplies………" – Redington shall not be the consumer of such goods and only an authorized representative of HP for making the supplies; Section A, Point 79, Page 2 "Tier Program means the supplies purchase program defined in Section G below, which is subject to this Agreement, and whereby the amount the Reseller shall be charged for Supplies shall be a function of the number of print impressions counted, as defined in Section D below" Section G, Point 3, Page 5 'Supplies shall remain the property of HP until utilized in the Press(es)." Section A, Point 11, Page 2 "Maximum Usage Per Impression" means the maxi
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ucts. Further, globally also the Applicant recognizes the supplies being made on a per impression basis (per click basis) which is the essence of the transaction. The quantity of consumables that should be used for an impression is pre-calculated by the Applicant and is constant for all Indigo presses of a particular series. As the print occurs, a particular quantity of each consumable is used and accordingly billed. Additionally, drawing reference to the supplies agreement between the reseller and the customer, the intent of the parties prove that all the indigo press consumables shall be supplied and consumed together and invoiced based on such consumption. Highlighting, relevant extracts of the agreement as under: Section 2 page 3 "The unused supplies under the terms of this agreement which are in the possession of the customer shall at all time remain the exclusive property of Redington" Section 4 page 3 Invoice for the supplies will be raised based on the reading from th
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bundle. Additionally, every consumer desirous of receiving such supplies shall be billed for all the goods, irrespective of the actual consumption of the respective products. The goods are supplied to the end customer generally once a month or for some customers twice a month. The goods are not capable of being used if the same any one of them is not used as required. One of such supply is the principal supply As evident from the chart explaining the flow of consumables, the printing ink (referred as ElectroInk) is the most predominant supply in the bundle. The ink flows through the entire process to effectively generate a print and produce the desired output. It is the most essential and highest consumed product (in terms of volume) in a printing cycle, evident from the fact that 41% of the consumption in terms of value is of ink (refer Annexure -1). The ink determines the quality and resolution of the image being printed, in the manner required by the customer. Illustration provided
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P's case, the items covered under the click program are not capable of being sold independently as all the items like Ink, Blanket, PIP etc. are essential for printing purpose and has no separate use for customer. Additional conditions for a composite supply Drawing reference to the clarification issued by the Central Board of Indirect Taxes and Customs ("CBIC") on the concept of Composite supply via a flyer, whether a supply qualifies as a composite supply would depend upon the normal or frequent practices followed in the area of business to which services relate. Such normal and frequent practices adopted in a business can be ascertained from several indicators some of which are listed below: a. The perception of the customer- As explained above, the perception of the customer is to receive (consume) all such goods together in order to obtain the desired output. The same can further understood by the fact that the customer agrees to pay the consideration on click basis,
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s are bundled in the ordinary course of business. If the nature of services is such that one of the services is the main service and the other services combined with such service are in the nature of incidental or ancillary services which help in better enjoyment of a main service. The HP Electrolnk is the principal supply as for the customers and suppliers the ElectroInk is the main component of the supply as is evident from the consumption. The ancillary supplies only help in transferring the ink from the cartridge to the paper. d. There is a single price or the customer pays the same amount, no matter how much package they actually receive or use The invoicing is done on a "per click basis" for all the supplies. Every customer is charged a single price for all the goods, irrespective of the fact that in achieving the final output of a print, there is different proportion of ElectroInk and other ancillaries consumed. Therefore, where a single price is charged in relation to
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t these goods are not sold, and cannot be used individually. f. The different elements are integral to one overall supply. If one or more is removed, the nature of the supply would be affected. The desired print output can only be achieved where all these goods are used as a bundle. They are integral to ensure the final output by the customer is in the manner required. Therefore, considering the above facts and explanations, the HP indigo consumables supplied under the tier program satisfies all the conditions of a composite supply. 03. CONTENTION – AS PER THE CONCERNED OFFICER- The submission of Departments as reproduced verbatim, could be seen thus- 1) The applicant submitted that the supply of ink along with oil, plates, consumables, blanket, bib etc. to the reseller is composite supply consisting of supply of goods or services which are naturally bundled and supply with conjunction with each other in ordinary course of business, where ink is the principle supply. 2) To constitute t
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place after thousand clicks, the blanket or photo imaging plate is required to be replace after approximately 3000 and 3300 clicks respectively. This clears that the goods are not mandatorily required to supply in conjunction. 5) Naturally bundled" implies that the recipient of the supply has no option to decide whether he wishes to receive the various elements of the supply provided as a bundled supply. Whereas, if such an option to decide is possible, then the supply cannot be said to be "naturally bundled" and such a supply will not be treated as a "composite supply". From the number of clicks the user can very well order the quantity of ink and other consumables separately. The way the supplies are bundled must be examined. Mere conjoint supply of two or more goods or services does not constitute composite supply. In the instant case though the ink and other consumables are supplied conjointly, this supply can be made separately and there is no natural bind
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Departments submission regarding Time and Supply. Submission on the issue of Continuous supply.- In ordinary course of business the supplies are made available to actual user through the network of Distributor and Reseller. The transaction between importer / manufacturer and its distributor is recognized as independent and separate transaction. Further there are separate transactions of such distributor to reseller and reseller to actual user. There is demand and supply of goods and services on regular basis. Most of times the supply is completed when the goods are removed from one entity/ location to another and tax liability has been discharged by the entity as per provisions. In this case there are two transactions, first between applicant and reseller and second between Reseller and actual user. In GST law transfer of ownership in goods is not mandatory while effecting supply, e.g. In the case of Branch transfer, the goods are owned by a specific company, still the transfer betwee
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nd made contentions as per their ARA for admission of application. The Jurisdictional Officer, Sh. P. R. Nilewad, Deputy Commissioner of State Tax (E-618), Large Tax Unit – 2, Mumbai appeared and stated that they have made written submissions which may be considered. The application was admitted and called for final hearing on 25.04.2018, Sh. K. Sivrajan, C.A. along with Sh. Kunal Wadhwa, C.A. appeared and made contentions as per their ARA application. Jurisdictional Officer, P. R. Nilewad, Deputy Commissioner of State Tax (E-618), Large Tax Unit – 2, Mumbai appeared and also made contentions as per his written submissions. The contention of both the parties were heard for this issue and matter was closed for order. 05. OBSERVATIONS We have gone through the written and oral submission made by the applicant and jurisdictional officer in connection to the questions asked in Advance Ruling. As per the documentary evidences and written submissions produced on the record, it is observed tha
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e type of print performed. Applicant has explained the billing method with an illustration as below: Assuming a customer uses the printer to take 100 prints in a month and each print costs of ₹ 10/-, then the customer shall be billed ₹ 1000/- for the ElectroInk along with the consumables used for the month. Accordingly applicant raises monthly consolidated invoice for the click charges on the reseller and in turn the reseller raises an invoice on each of the end customers. We find that on the above factual matrix we have been called upon to decide two questions namely classification of Elecrolnk supplied along with consumables supplied under GST and the time and value of supply of ElectroInk with consumables. 5.2. we shall now deal with each question separately as below : Question 1- classification of ElectroInk supplied along with consumables under GST . On perusal of statement containing applicant's interpretation of law and facts with respect to this question, it is
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use (30) of Section 2 of the GST Act. [2 (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; Illustration: Where goods are packed and transported with insurance, the supply of goods, packing materials, transport and insurance is a composite supply and supply of goods is a principal supply. Thus the essential ingredients that constitute Composite Supply are – (i) the supply consists of two or more taxable supplies of goods or services or both or any combination thereof, (ii) such supplies are naturally bundled (iii) supplied in conjunction with each other and (iv) such supplied are in the ordinary course of business, one of which is a principal supply. Now let us examine whether the applicant satisfies the i
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y air is combined with an element of provision of catering service on board. Each service involves differential treatment as a manner of determination of value of two services for the purpose of charging service tax is different. The ride is – 'If various elements of a bundled service are naturally bundled in the ordinary course of business, it shall be treated as provision of a single service which gives such bundle its essential character'. In the present case we find that supply of ElectroInk with consumables by the applicant to the distributor/reseller constitute bundled supply which involves more than two taxable supplies of goods . The next issue for our consideration in order to constitute impugned supply as composite supply is to find whether the supplies are naturally bundled .The word 'Naturally', is not defined under the ACT, we therefore refer to dictionary to under the meaning . The dictionary meaning is as below, As per Merriam Webster 1 : by nature : by n
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assume significance of the factual background that there exists a notable difference between the conventional offset and HP Indigo Digital offset Printing Technology. The terms of the contract as mentioned above clearly indicate that the recipient of the supply has no option to select individual supply but to accept it as bundled supply. Thus the transaction of supply of ElectroInk with consumables cannot be considered as Naturally bundled Supply but a compulsory supply. Thus the transaction before us cannot be said to be naturally bundled supply. 5.4 Now we have to decide another aspect of composite supply i.e. whether the goods are supplied in the ordinary course of business. In this regard useful reference can be made to GST Flyers issued by CBEC in which certain tests are laid down which are listed below to ascertain supply of goods or services or both in the ordinary course of business. 1) The perception of the consumer or the service receiver 2) Majority of service providers in a
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s Product Lines under different programs provided that the reseller shall purchase all of the supplies. All such supplies are required to be consumed together in order to produce desired output. He therefore submits that the goods are supplied in conjunction to each other in the ordinary course of business. However we find that this submission and argument is contrary to their own admission that every product supplied herein has a separate lifespan independent of each other. The applicant has submitted the consumption pattern of Electro ink along with consumables supplied to authorised reseller. From this consumption pattern it is noticed that if the requisite quantity of ink and other consumables are supplied to the printing machine for first time, the other consumables are not required to be supplied compulsorily. Assuming that the ink is required to be replaced after thousand clicks, the blanket or photo imaging plate is required to be replaced after approximately 3000 and 3300 clic
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r a single price where such supply does not constitute a composite supply. Illustration: A supply of a package consisting of canned foods, sweets, chocolates, cakes, dry fruits, aerated drinks and fruit juices when supplied for a single price is a mixed supply. Each of these items can be supplied separately and is not dependent on any other. It shall not be a mixed supply if these items are supplied separately; There is no dispute that applicant's supplies consist of two or more than two supplies. It is also not in dispute that the supplies are made in conjunction with each other and made for a single price. We have already observed that each of the supplies can be supplied separately as they are not dependent on each other and one supply of goods does not occasion the supply of other goods. As the transaction put before us satisfies all the ingredient of 'mixed supply' we conclude the transaction would come and fall under 'mixed supply' as defined in clause 74 of s
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stomer through reseller only upon invoicing and receiving of payment. Further applicant submits that supplies made by them are on continuous basis in accordance with the terms of the contract entered and the applicant is required to raise invoice on periodic basis We find that the supply of goods in the present case fulfil the basic tenets of 'continuous supply' and therefore we find from the above deliberation that the impugned supply is 'continuous supply of goods 'as defined in clause 32 of section 2 of the GST Act. 5.7 Time and Value of Supply – The next issue for our consideration raised by the applicant is the time and value of supply of Electro Ink with consumables under the Indigo Press Contract. As per the provision of GST ACT, the liability to pay tax on goods arise at the time of supply as determined in accordance with the provisions of section 12 of the Act. As per section 12 the time of supply shall be: Section 12(2) – Time of supply of goods. (1) The liabi
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rposes of clause (b)," the date on which the supplier receives the payment" shall be the date on which the payment is entered in his books of account or the date on which the payment is credited to his bank account, whichever is earlier. (3) …………………………. (4) …………………………. (5) Where it is not possible to determine the time of supply under the provisions of sub-section (2) or sub-section (3) or sub-section (4), the time of supply shall- (a) in a case where a periodical return has to be filed, be the date on which such return is to be filed; or (b) in any other case, be the date on which the tax is paid. (6) The time of supply to the extent it relates to an addition in the value of supply by way of interest, late fee or penalty for delayed payment of any consideration shall be the date on which the supplier receives such addition in value. As we have already concluded that the impugned supply is a continuous supply of goods as defined in the
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reproduced herein below: Section 31 (4) 'In case of continuous supply of goods, where successive statement of account or payments are made, the invoice shall be issued before or at the time of each statement is issued or as the case may be, such payments are received.' Accordingly we find that applicant has to raise invoice on or before 15th day from the end of each calendar month with respect to supplies made in the preceding month. Thus the time of supply in the present case will be the earliest date between the date of invoice or the date of payments with respect to impugned supply as per the provisions of section 12(2) of the GST Act. 5.8. Value of Supply- The next issue pertains to values of supply of ElectroInk with consumables under the Indigo Press Contract, the details of such supplies are as below:- SI. No. Nature of product HSN Consumption (%) 1. Printing Ink (ElectroInk) 32151190 41% 2. Blanket 59111000 16% 3. PIP – Photo imaging plate 59119090/ 84439100 13% 4. OMP
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2018 (9) TMI 973 – AUTHORITY FOR ADVANCE RULING – ANDHRA PRADESH – 2018 (16) G. S. T. L. 276 (A. A. R. – GST) – Classification of product – rate of tax – Energy-G premium oil – clarification sought for Correct HSN Code of the product – Held that:- The product under question is manufactured out of Vegetable fats/ oils and not from animal fats/ oils. That being so the classification of product is HSN 1518 and shall be subject to 5% CST as per Schedule I of Notification No. 1/2017-C.T. (Rate), dated 28-6-2017 and corresponding SGST Notification.
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Ruling:- Correct HSN Code of “Energy-G premium Oil” is HSN 1518 vide S. No. 90 of, Schedule I of Notification No. 1/2017-C.T. (Rate), dated 28-6-2017 and hence the rate of tax attracts 5%. – Rul
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feed. 2. The applicant has filed an application in FORM GST ARA-01, dated 7-4-2018 and paid prescribed fee in prescribed format having CPIN : SBIN 3718023700119896, dated 24-2-2018. The applicant seeks advance ruling on : Requesting for the clarification of Correct HSN Code of their product i.e. "Energy-G premium oil" On verification of basic information of the applicant, it is observed that the applicant falls under State jurisdiction, i.e. Kakinada Circle, of Kakinada Division (as per the bifurcation lists of taxpayers between the Centre and State in the prescribed manner). Accordingly, the application was forwarded to the jurisdictional officers and also a copy marked to the Central Tax authorities to offer their remarks as pe
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tion reads as… "Vegetable fats and oils and their fractions, boiled, oxidized, dehydrated, sulphurised, blown, polymerized by heat in vacuum or in inert gas or otherwise chemically modified, excluding those of heading 1516" 4. We have gone through the application filed by the applicant and the written submission explaining the manufacturing process and the raw material involved in preparation of the said "Energy-G premium oil". It is submitted before us that the product under question is manufactured out of Vegetable fats/ oils and not from animal fats/ oils. That being so the classification of product is HSN 1518 and shall be subject to 5% CST as per Schedule I of Notification No. 1/2017-C.T. (Rate), dated 28-6-2017 a
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2018 (9) TMI 369 – ALLAHABAD HIGH COURT – [2018] 2 GSTL 45 (All) – Seizure of goods alongwith Vehicle – till date no order passed inspite of appeal – Held that:- Learned Standing Counsel appearing for the respondents is not in a position to inform why the appeal could not be decided and where the seized goods are kept by the authorities till they are ordered to be released by the competent authority or court. The respondents cannot be keep on detaining or seizing the goods and to keep them on the road itself which may ultimately create numerous other problems – the Appellate Authority that is respondent no. 4 is directed to decide the appeal of the petitioners in accordance with law – petition disposed off. – WRIT TAX No. – 907 of 2018 Da
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ection of the High Court preferred an appeal on 2.5.2018 before the respondent no. 4- Additional Commissioner, Grade-II but till date no final order has been passed as a result the seized goods and the vehicle of the petitioners is lying on the road. The petitioners have preferred this petition for a direction for the release of the aforesaid goods and for the decision of the above appeal forthwith. Learned Standing Counsel appearing for the respondents is not in a position to inform why the appeal could not be decided and where the seized goods are kept by the authorities till they are ordered to be released by the competent authority or court. The respondents cannot be keep on detaining or seizing the goods and to keep them on the road it
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2018 (9) TMI 368 – ALLAHABAD HIGH COURT – [2018] 2 GSTL 39 (All), [2018] 59 G S.T.R. 199 (All) – Seizure of goods alongwith Vehicle – goods not accompanied by the E-way bill – case of petitioner is that as the site was not operative, the bill could not be generated but subsequently the E-way bill was downloaded on 03.06.2018 at 11.18 a.m. and was produced before the authorities. There was no intention to evade any tax to permit seizure – Held that:- The seized goods and the vehicle shall be released in favour of the petitioner on furnishing security other than cash and bank guarantee to the satisfaction of the authority concerned of the amount equivalent to the value of the goods only – List for admission/final disposal immediately on the
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2018 (8) TMI 1684 – CESTAT CHENNAI – TMI – Condonation of delay of 55 days in filing the appeal – Held that:- The appellant has given plausible explanation for the delay in the condonation applications – Delay of 55 days in filing the appeal condoned – COD Application allowed. – ST/COD/40358/2018 in ST/40973/2018 – Misc Order No. 40506/2018 – Dated:- 8-6-2018 – Ms. Sulekha Beevi CS., Member (Judicial) Shri M. Kannan, Advocate for the Appellant Shri R. Subramaniyan, AC (AR) for the Respondent ORDER The above application seeking condonation of delay is filed by the appellant seeking to condone the delay of 55 days in filing the appeal. 2. On behalf of the appellant, the Ld. Counsel, Shri M. Kannan, submitted that only when the Range Officers
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