Goods and Services Tax

Deleted……

Customs – 20/2018 – Dated:- 30-5-2018 – OFFICE OF THE PRINCIPAL COMMISSIONER OF CUSTOMS CUSTOMS HOUSE, NAVARANGPURA, AHMEDABAD, 380009. F. No. VIII/48-21/Cus/Sys/2017-18 PUBLIC NOTICE NO. 20/2018 DATE 30-05-2018 Sub: Special Drive Fortnight to rectify errors relating to IGST refunds. Attention of the Exporters, Custom House Agents and Trade is invited towards the Special Drive Fortnight launched during 15th March to 31st March 2018 which resulted into sanction of huge amount of IGST refunds by way of rectification of error code SB005 and SB006 through officer interface. 2. Looking to the grand success of the above "Special Drive Fortnight", the CBIC, New Delhi has devised some more mechanisms to process IGST refund stuck up on ac

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Correction / rectification in the Shipping Bill where exporters mentioned the status of IGST payment as NA instead of P and in the case of IGST refund cases stuck into Error Code SB003. – Customs – 21/2018 – Dated:- 30-5-2018 – OFFICE OF THE PRINCIPAL COMMISSIONER OF CUSTOMS CUSTOMS HOUSE, NAVARANGPURA, AHMEDABAD, 380009. F. NO. VIII/48-16/Cus/SYS/2017-18 DATE: 30-05-2018 PUBLIC NOTICE No. 21/2018 Sub: Correction / rectification in the Shipping Bill where exporters mentioned the status of IGST payment as "NA" instead of "P" and in the case of IGST refund cases stuck into Error Code SB003. Attention of the Exporters, Custom House Agents and Trade is invited to Board's Circular 08/2018 dt. 23.03.2018. In consonance wit

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e available for rectification. 3. Additionally, IGST Refund in respect of SBS with error code SB003, where the exporter has either declared a different GSTIN in the SB or has only declared PAN, and the corresponding returns have been filed through another GSTIN with the same PAN, can also be sanctioned through the Officer Interface. In such Cases, the GST registered unit have to submit an undertaking an undertaking which has filed the returns that "they have no objection to the refund being granted to the exporter who has filed the Shipping Bill and that they will not claim any IGST Refund for exports under that SB separately". Once satisfied, the Customs officer may sanction the applicable IGST Refund through the Officer Interfac

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2018 (8) TMI 1667 – CESTAT CHENNAI – TMI – Appropriation of rebate against the dues – Held that:- In an identical case M/S. CHEMPLAST SANMAR LTD. VERSUS COMMISSIONER OF GST & CENTRAL EXCISE, TRICHY [2018 (5) TMI 1763 – CESTAT CHENNAI], where the appeal was held in favor of appellant – the appropriation made by the order impugned herein cannot sustain – appeal allowed – decided in favor of appellant. – Appeal No. E/40030/2013 – Final Order No. 41675/2018 – Dated:- 30-5-2018 – Ms. Sulekha Beevi C.S., Member (Judicial) Ms. S. Nandita Das, Advocate for the Appellant Shri R. Subramaniam, AC (AR) for the Respondent ORDER Brief facts are that the appellants filed rebate claim for ₹ 4,81,194/- under Rule 18 of Central Excise Rules, 2002 in r

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allowance of CENVAT credit on MS angles, MS plates, MS sheets, DR coils etc. The said appeal has been allowed in favour of the appellant vide Final Order No.41674/2018 dated 30.5.2018 thereby setting aside the Order-in-Appeal No. 67/2010 dated 30.6.2010. Thus, the appropriation of the amount in consequence of the above order is no longer sustainable. She submitted that the Appeal No. E/583/2010 was field by the appellant along with stay petition before Tribunal. The appropriation was done during the pendency of the appeal as well as stay petition. The Board vide Circular No. 7/90-CX6 dated 2.3.1990 has clarified that no recovery proceedings shall be taken when the appeal and stay petition is pending. The Hon ble Apex Court in the case of Un

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vide Final Order No.41674/2018 dated 30.5.2018. Therefore, the appropriation made by the order impugned herein cannot sustain. Further, the Board circular has clarified that no recovery proceedings shall be taken when the appeal and stay applications are pending before the Tribunal. The Hon ble High Court of Madras also in the case relied upon by the ld. counsel has held that the department should wait for reasonable period before initiating recovery proceedings. Thus, I am of the view that the impugned order cannot sustain. The impugned order is set aside and the appeal is allowed with consequential relief, if any. (Operative portion of the order was pronounced in open court) – Case laws – Decisions – Judgements – Orders – Tax Management

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2018 (5) TMI 1763 – CESTAT CHENNAI – TMI – CENVAT Credit – capital goods – MS Plates, MS checkered plates, MS sheets, MS channels, HR steel coils etc. – Held that:- The impugned items in the present appeal were used for fabrication of storage tank. The appellants are engaged in manufacture of denatured ethyl alcohol and such storage tanks are an indispensable item in the manufacturing activity. Without such activity of fabrication using the MS plates, MS sheets, HR coils etc. the storage tank cannot be installed within the factory at the required height to be used in the process of manufacture.
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The Larger Bench of the Tribunal in the case of Commissioner of Central Excise, Meerut Vs. Modi Rubber Ltd. [2000 (5) TMI 64 – CEGAT, NEW DEL

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, MS checkered plates, MS sheets, MS channels, HR steel coils etc. It appeared to the department that these goods do not fall within the capital goods and therefore the appellants are not eligible for credit. Show cause notice was issued proposing to demand the wrongly availed credit along with interest as well as for imposing penalties. After due process of law, the original authority confirmed the demand, interest and imposed penalties, which was upheld by the Commissioner (Appeals). 2. On behalf of the appellant, ld. counsel Ms. Nandita Das submitted that the MS sheets, MS angles etc. were used for fabrication of storage tanks. Such tanks are an indispensable part / capital goods in the manufacturing process. The welding electrodes were

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dated 29.1.2018 in the appellant s own case as well as in Final Order No. 42922 & 42923/2017 dated 15.11.2017 had held the issue in favour of the appellant for different periods. She pleaded that the appeal may be allowed. 3. The ld. AR Shri R.Subramaniam supported the findings in the impugned order. 4. Heard both sides. 5. The issue is whether the MS plates, MS sheets, HR coils etc. are eligible for credit. The Larger Bench of the Tribunal in the case of Commissioner of Central Excise, Meerut Vs. Modi Rubber Ltd. – 2000 (119) ELT 197 (Tri. LB) has held that if the appellants are eligible for credit either under capital goods or inputs, the credit has to be allowed. The impugned items in the present appeal were used for fabrication of

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GST – States – SRO 242 – Dated:- 30-5-2018 – Government of Jammu and Kashmir Finance Department Civil Secretariat, Srinagar Notification Srinagar, the 30th May, 2018 SRO 242 – In exercise of the powers conferred by section 128 of the Jammu and Kashmir Goods and Services Tax Act, 2017 (Act No. V of 2017), the State Government, on the recommendations of the Council, hereby waives the late fee payable under section 47 of the said Act for failure to furnish the return in FORM GSTR-3B by the due dat

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2018 (6) TMI 810 – CESTAT NEW DELHI – TMI – Renting of immovable property – joint ownership – SSI exemption – Clubbing of clearances – threshold limit of ₹ 10 lakhs under SSI exemption N/N. 8/2008 dated 01/03/2008 in each case – Held that:- The ownership title of the property which is on lease with M/s ICICI Bank Ltd. is individually in the name of the four appellants who has entered into a joint lease agreement with the tenant namely M/s ICICI Bank Ltd. and the amount of rent on monthly basis has also been received by them separately and individually – As per the Income Tax Act all the four appellants who are recipient of the rent proceeds have to show their income in the individual name and has to pay rent under the Income Tax Act, 1962 accordingly.
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The SSI exemption N/N. 8/2008 dated 01/03/2008 (previously 6/2005 dated 01/03/2005) shall be available for individual owner of the above property for considering the taxable value of the service received by the individual ow

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the registration of the property in four individual names and execution of rent lease agreement with M/s ICICI Bank in the separate names is only to evade the payment of the service tax by availing the threshold limit of ₹ 10 lakhs under SSI exemption Notification No. 8/2008 dated 01/03/2008 (which was 6/2005 dated 01/03/2005 previously) in each case. The case has been adjudicated originally by Additional Commissioner wherein it has been held that:- 7.7 I find that in case of renting of immovable property the provider/s are the owners of the property which is being rented out. In case of the property owned by a firm or a company, the liability of assessment and payment of the service tax is on the firm/company and not individually upon its share holders or partners, as the law recognized them as one legal entity. In the instant case, I observe that the said property has been jointly leased out to M/s ICICI Bank Ltd. by the co-owners vide Lease Deed dated 15/11/2006 . 2. It can be

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of the four appellants who has entered into a joint lease agreement with the tenant namely M/s ICICI Bank Ltd. and the amount of rent on monthly basis has also been received by them separately and individually. As per the Income Tax Act all the four appellants who are recipient of the rent proceeds have to show their income in the individual name and has to pay rent under the Income Tax Act, 1962 accordingly. It has also been held by Hon ble Supreme Court in the case of CIT vs. Shiv Sagar Estate that lease rent from property purchased jointly with specific shares is separately assessable in the hands of individual co-owner and not in the hands of association of persons. It has also been held in several orders of this Tribunal that for considering the SSI benefit under Notification 8/2008 dated 01/03/2008 (previously 6/2005 dated 01/03/2005) the receipt of the service provider need to be considered individually and only after they have crossed the threshold limit of ₹ 10 lakhs the

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arises, should be confined without the benefit of the notification No. 6/2005-S.T. 7. It is undisputed that the property which has been rented out by the respondent and his brothers is jointly owned property; service tax liability arises on such renting of property. 8. On deeper perusal of impugned order, we find that the first appellate authority has considered all the angles in the dispute and came to the correct conclusion. The findings of first appellate authority is as under. 6.2 On mere reading of the Order-in-Original, it is evident that the adjudicating officer has considered above named four persons as one person for determining tax liability and imposition of penalties without telling any legal basis for doing so. The appellants have contested the Order in Original mainly on the grounds that rented property belongs to four separate persons (all brothers) but the service tax has been demanded wrongly by the department from the appellants by clubbing the rent received by all t

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al rental receipts and not collective one. From the various lease agreements made with above mentioned Commercial firms, it cannot be disputed that monthly rent was paid by the above named concerns to each appellant after deducting tax at their end. 6.3 From the show cause notice dated 19-10-2012, it is evident that the appellants had received rent as detailed below :- Sr. No. Period Amount (Rs.) 1. 2007-08 (1-6-2007 to 31-3-2008) ₹ 29,21,048/- 2. 2008-09 ₹ 36,27,024/- 3. 2009-10 ₹ 46,72,744/- 4. 2010-11 ₹ 52,63,304/- 5. 2011-12 ₹ 44,28,360/- But as the rent was distributed equally among each of the appellant, it is evident that each of them received an amount lesser than ₹ 8 lakhs and 10 lakhs in the years 2007-08 and 2008-09 respectively which is below the exemption limit of eight lakhs and ten lakhs during the relevant period. The appellants were, therefore, not liable to pay service tax on the amounts received by them during these two years by vi

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ady accepted their tax liability and paid Service tax along with interest on 14-2-2012. The said payment of service tax is certainly a delayed payment, but was made by the appellants on their own when they realized that their taxable value for renting of property had exceeded the exemption limit of ₹ 10 lakhs. The adjudicating authority has claimed in his order that the appellants paid service tax only after Department started investigation, but is not supported by any evidence or the facts on record. The SCN or the OIO do not talk of any audit objection or Preventive action or any inspection etc. on the basis of which not payment of service tax by the appellants was pointed out. Instead in the SCN, one statement of Shri Chandulal Vishrambhai Patel is only referred to which was recorded on 22-2-2012 which is 8 days after the appellants had paid service tax along with interest on their own. Thus, the claim of the appellant that they had paid service tax for the years 2009-10 and 2

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imposable in this case for the period 2009-10 and 2010-11. 9. It can be seen from the above reproduced findings of the first appellate authority, the conclusion arrived at is very correct, as co-owners of the property cannot be considered as liable for a Service Tax jointly or severally as Revenue has identify the service provider and the service recipient for imposing service tax liability, which in this case, we find our individual. The conclusion arrived at by the first appellate authority is correct and he has confirmed the demand raised on the respondents by extending the benefit of Notification No. 6/2005-S.T. We do not find any reason to interfere in such a detailed order . 5. In view of above and following the principle of judicial discipline, we are of the view that the SSI exemption Notification No. 8/2008 dated 01/03/2008 (previously 6/2005 dated 01/03/2005) shall be available for individual owner of the above property for considering the taxable value of the service receive

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2018 (6) TMI 777 – CESTAT NEW DELHI – TMI – Refund of Cess paid – Secondary & Higher Education Cess – time limitation – Section 11B of Central Excise Act – Held that:- There is no basic provision either in the Excise Act or under the Cenvat Credit Rules relating to the refund of the accumulated credit – In the absence of any such provision conferring jurisdiction on the Tribunal to deal with the refunds of accumulated unutilized credits, it is not possible to go beyond the legislation and to deal with the said issue.
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Cenvat Credit Rules allows the credit of the duty/tax paid on the inputs for further utilisation of the same in discharge of the dues on the final product. As such, it become clear that credit is admissible only for utilisation towards payment of duty on the final product of the asessee and such credit can never be encashed by the asessee.
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Appeal dismissed – decided against appellant. – Excise Appeal No. E/50884/2018-EX[SM] – A/52111/2018-SM[BR] – Dated:- 30-5

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r 01.03.2015. As the appellant s raw materials were received prior to 01.03.2015, they were not in a position to avail the benefit of Notification No. 12/2015-CE. 3. As the appellants were having credit of cess and Secondary & Higher Education Cess lying unutilized in their account, as on 01.03.2015, when the cess liability was withdrawn, they applied for the refund of the same to the extent of ₹ 708933/-. The revenue by entertaining a view that there are no provisions in the Excise Act for allowing refund of accumulated unutilized credit, initiated proceedings against them by way of issuance of a show cause notice resulting in passing of the present impugned order by the original Adjudicating Authority vide which refund stand rejected. The said Order was upheld by Commissioner (Appeals) and hence the present Appeal. 4. By referring to the provisions of Section 11B of Central Excise Act, the appellate authority observed: 8. I find that Section 11B of the Central Excise Act, 1

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ulated credit. Ld. Advocate has also not been able to draw my attention to any of such provision or any notification etc. The argument of the Ld Advocate that the refund should be given as they are not in a position to utilise the credit cannot be appreciated inasmuch as this court is not working on the principle of equity, justice and good conscious, but being a creator of the Act, is bound by the provisions of the Act. In the absence of any such provision conferring jurisdiction on the Tribunal to deal with the refunds of accumulated unutilized credits, it is not possible to go beyond the legislation and to deal with the said issue. The Hon ble Supreme Court in the case of Porcelain Electrical Mfg 1998 (98) E.L.T. 583 (S.C.) while dealing with the power of the authorities under the Act has clearly observed that the authorities have to work within the provisions of law and cannot exercise writ jurisdiction of High Courts in terms of Article 226. 6. Otherwise also, I find that the Cenv

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2018 (6) TMI 776 – CESTAT NEW DELHI – TMI – Adjustment of the sanctioned refund claim against outstanding demands – refund of the amount of ₹ 10 lakhs which the appellant was directed to deposit as a condition of hearing their appeal, which stand deposited by them – Held that:- Admittedly, the appellant has to pay the Revenue the confirmed demands – Mere filing of appeal before the Hon’ble High Court, without there being any stay, cannot be considered as pendency of the appeal. The Tribunal being the last fact finding body, the orders passed by it have to be taken as having attained finality, unless stayed or reversed by higher appellate forum – appeal dismissed – decided against appellant. – Ex. Appeal No. 50738 of 2018-SM – A/52108/2018-SM[BR] – Dated:- 30-5-2018 – Ms. Archana Wadhwa, Member (Judicial) Sh. Manish Saharan, Advocate for the appellant Sh. H. C. Saini, AR for the Respondent Per: Archana Wadhwa: After hearing both the sides, I find that the dispute in the present a

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order of the original adjudicating authority adjusting the refund with the outstanding demand was challenged by the appellant before the Commissioner (Appeals), who upheld the same and hence the present appeal. 4. After hearing both sides, I find that another demand of around ₹ 1.90 crore was confirmed by the Commissioner of Customs, Indore vide his order-in-original dated 19.03.2010, against which the present sanctioned refund stand adjusted. Ld. Advocate appearing for the appellant fairly agrees that on an appeal against the said order of the Commissioner, confirming the demand, Tribunal has upheld the same. However, he submits that the said order of the Tribunal has been challenged by them before the Hon ble High Court of Madhya Pradesh and the appeal is pending before the Hon ble High Court. However, he fairly agrees that there is no stay of operation of the Tribunal order. It is his contention that instead of adjusting the refund claim against the said confirmed demand, Reve

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ecting the appeal. 6. For better appreciation, the reasoning adopted by the Commissioner (Appeals) in para 8, which is as under: 8. I find that the demand of customs duty was confirmed vide OIO dated 19.03.2010 amounting to 1.89 crore by the Commissioner, Customs, Indore. The appeal filed by the appellant was also dismissed by the Tribunal vide order dated 12.08.2015. Therefore, the adjustment has been made much after the two month time limit given by the Board. Further, no stay has been obtained against the said order of the Tribunal. The mere fact that an appeal has been filed by the appellant before the High Court is no ground to argue against the said adjustment of government dues, unless a stay has been obtained. It may also be stated that factory is closed since last several years and huge amount of customs dues are outstanding. Therefore, there is no infirmity in adjustment made by the adjudicating authority and such adjustment has been made in accordance with the statutory prov

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2018 (6) TMI 519 – AUTHORITY FOR ADVANCE RULING HYDERABAD TELANGANA – 2018 (14) G. S. T. L. 97 (A. A. R. – GST) – Classification of supply – supply of goods and/or services – printed advertisement materials – Whether the printed advertisement materials classifiable as 'supply of goods? – If yes, whether it is classifiable under chapter heading 4911 of first schedule to Customs Tariff Act, 1975? – Held that:- As per Section 7 of CGST Act, 2017 read with Schedule-II Sl. No. 1(a) of CGST Act, “any transfer of the title in goods is a supply of goods” – In the instant case the applicant is engaged in the business of manufacturing and sale of digital printed materials, wherein preparation of such printed material would be undertaken as per the customers specification and except specifying the specifications and designs to be printed, clients/customers of applicant does not provide any materials and all required materials for the preparation of the advertisement materials are procured by the

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S, Joint Commissioner (Central Tax) ORDER 1. M/s. Macro Media Digital Imaging Private Limited, Charlapally, Hyderabad (GSTIN No.36AABCM9451F1ZF) has filed an application in Form GST ARA-01under Section 97(1) of TGST Act,2017 read with Rule 103 of CGST/TGST Rules, 2017and sought Advance Ruling on the following issues:- (i) Whether the printed advertisement materials classifiable as 'supply of goods? (ii) If yes, whether it is classifiable under chapter heading 4911 of first schedule to Customs Tariff Act, 1975? 2. The applicant submitted the application in Form GST ARA-01 and Statement containing the applicant's interpretation of law &relevant facts and requested for advance ruling on,- "(i) whether the printed advertisement materials classifiable as 'supply of goods? (ii) If yes, whether it is classifiable under chapter heading 4911 of first schedule to Customs Tariff Act, 1975?" They have submitted a copy of Challan evidencing payment of application fee of &#

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ion of the advertisement materials are procured by Applicant only. (v) Applicant also recovers the cost incurred towards transportation, installation, packing etc. (vi) In pre-GST regime, Applicant had been paying applicable VAT and filed returns accordingly. 4. The applicant has also filed statement containing the Applicants interpretation of law and/or facts as the case may be, in respect of the question on which Advance Ruling is sought for in Annexure-II as under:- a. That M/s Macro Media Digital Imaging Private Limited (herein after referred to as the Applicant) are engaged in the business of printing and sale of trade advertising materials as explained in the Statement of facts enclosed as Annexure-I. b. Applicant understands that GST is a tax to be levied on supply of goods and/or services. Any transaction of supply of goods and/or services would attract,- i. CGST (Central GST) and SGST (State GST) if supply is intra-state ii. IGST (integrated tax) if the supply is inter-state.

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e done. After classifying a product/supply as goods/services, further step involved is arriving at the rate of tax as the rates are different even among goods or services. f. The word 'goods' is defined under Section 2(52) of CGST Act, ibid which is extracted below :- i. "(52) "goods" means every kind of movable property other than money and securities but includes actionable claim, growing crops, grass and things attached to or forming part of the land which are agreed to be serviced before supply or under a contract of supply" ii. Similarly the word 'services' is defined u/s 2(102) of CGST Act, ibid which is extracted below: iii. "(102) "services" means anything other than goods, money and securities but includes activities relating to the 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,"

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arise out of land, and things attached to the earth, or permanently fastened to anything attached to the earth;" i. As seen from the above, 'movable property' covers all properties except 'immovable property'. Therefore, if the property does not fall under the definition of 'immovable property', then same falls under the scope of 'Movable property'. The term 'Immovable property' includes land, benefits to arise out of land and things attached to the earth or fastened to the earth. j. Further, the settled legal position under the provisions of Central Excise as well as sales tax is that things which are capable of being moved from one place to another without any substantial damage to the property while shifting, are not 'immovable property' but is 'movable property'. k. In the instant case, Applicant supplies the printed trade advertising materials (i.e. Banner flex), which is freely movable from one place to another thereby

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tral Tax (Rate) dt. 28-06-2017 (corresponding Notification No. 1/2017 -State Tax (Rate) dt. 29-06-2017 for SGST rate and also 1/2017 – Integrated tax (Rate), dt. 28-06-2017 for IGST rate). p. On perusal of the above notifications, Applicant understands that the goods have been categorized under six schedules based on description and HSN where each schedule is attracting different rate of tax. q. In term of explanation (iii) and (iv) to Notification No. 1/2017 – Central Tax (Rate) dt. 28-06-2017, tariff heading, sub-heading, heading and chapter shall mean respectively a tariff item, sub-heading, heading and chapter as specified in the First Schedule to the Customs Tariff Act, 1975 and the rules for the interpretation of the First Schedule to the Customs Tariff Act, 1975, including the Section and Chapter Notes and the General Explanatory Notes of the First Schedule shall be applied for the interpretation and classification of goods. r. On perusal of the rate schedules in the aforesaid n

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sing and not covered under any other heading of chapter 49, Applicant understands that same will fall under the heading 4911 which is liable for GST at the rate of 12%. t. The above understanding was also supported by chapter note 5 to Chapter 49 of Customs Tariff Act, 1975 which reads as under :- i. "Subject to Note 3 to this Chapter, heading 4901 does not cover publications which are essentially devoted to advertising (for example, brochures, pamphlets, leaflets, trade catalogues, year books published by trade associations, tourist propaganda). Such publications are to be classified in heading 4911". u. Applicant understands that Notification No. 11/2017 – Central Tax (Rate), dt. 2806-2017 as amended by Notification No. 31/2017 – Central Tax (Rate), dt. 13-102017 which specifies the rates for 'supply of services' reads as under (Sl. No. 21(i)):- i. "(i) Services by way of printing of all goods falling under Chapter 48 or 49 [including newspapers, books (includi

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(52) GST law and such Goods falls under Tariff Heading 4911 and liable to GST rate @ 12%. They filed further submissions as given below:- (i) Applicant supplies the printed trade advertising materials (i.e. Banner flex), which is freely movable from one place to another thereby it becomes 'movable property' and consequently falls under the ambit of 'goods' under Section 2(52), ibid. Once anything falls under the ambit of 'goods' as defined under Section 2(52) of CGST Act, 2017 it does not become 'services' defined under section 2 (102) of CGST Act, 2017 and vice-versa. The above is further supported from :- a. Sl. No. 1(a) of Schedule-II to the CGST Act, 2017 providing that any transfer of title in goods is 'supply of goods'. b. Para 5 of the TRU clarification vide circular No. 11/11/2017-GST dated 2010-2017 that printing contracts similar to the instant case constitute 'Supply of goods' Hence, instant case of supplying printed advertisem

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paration of such printed material would be undertaken as per the customers specification and except specifying the specifications and designs to be printed, clients/customers of applicant does not provide any materials and all required materials for the preparation of the advertisement materials are procured by the applicant ,and the applicant is transferring the title in the goods i.e., printed advertisement materials. Therefore, instant case of supplying printed advertisement materials amounts to supply of 'goods' only. 7. Further, printed advertisement material are classifiable under Tariff heading 4911 in accordance with the rules for the interpretation of the First Schedule to the Customs Tariff Act, 1975, including the Section and Chapter Notes and the General Explanatory Notes of the First Schedule as made applicable for the interpretation and classification of goods under GST Tariff. 8. The issue has been examined with reference to the provisions of the CGST/TGST Act, 2

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2018 (6) TMI 465 – AUTHORITY FOR ADVANCE RULING HYDERABAD TELANGANA – [2018] 59 G S.T.R. 201 (AAR), 2018 (14) G. S. T. L. 90 (A. A. R. – GST) – Classification of goods – Rate of Tax – Agricultural Soil testing Minilab and its Reagent Refills – whether classifiable under exempted goods falling under Tariff heading 8201 as notified vide N/N. 2/20172017 – Central Tax (Rate), dt.28-06-2017 or otherwise?
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Held that:- A combined reading of chapter notes and description of goods covered under Tariff heading 8201 reveals that the goods covered under this heading are basically hand tools of a kind used in agriculture, horticulture or forestry – Whereas the main function of the “Soil testing minilab” is todetermine all the important soil parameters i.e., soil pH, EC, Organic Carbon, available nitrogen, phosphorus, potassium, Sulphur and micronutrients like Zinc, boron and iron and hence cannot be classified as a hand tool along with the items of description given under Tariff heading 8201

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Dated:- 30-5-2018 – Sri J. Laxminarayana, Additional Commissioner (State Tax) And Sri V. Srinivas, IRS, Joint Commissioner (Central Tax) ORDER 1. M/s. Nagarjuna Agro Chemicals Private Limited, Hyderabad, (GSTIN No. 36AABCN5531F1ZP) has filed an application in Form GST ARA-01under Section 97(1) of TGST Act, 2017 read with Rule 103 of CGST/TGST Rules, 2017and sought advance ruling on Rate of Tax on "Agricultural Soil testing Minilab and its Reagent Refills". 2. The applicant submitted Statement containing the applicant's interpretation of law &relevant facts and requested for advance ruling on classification of "Agricultural Soil testing Minilab and its Reagent Refills". They have submitted a copy of Challan evidencing payment of application fee of ₹ 5,000/- 3. A personal hearing was held in this case and Mr. J.V. Rao, Advocate & Authorized Representative of M/s. Nagarjuna Agro Chemicals Private Limited, Hyderabad appeared for personal hearing on 27

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s all the important soil parameters i.e., soil Ph, EC, Organic Carbon, available nitrogen, phosphorus, potassium, sulphur and micronutrients like Zinc, boron and iron. Based on the above findings, it will provide vital information to farmers and suggest them right type of inputs to improve productivity and avoid losses. • Mridaparikshak comes with soil sampling tools, GPS, balance, shaker, hot plate and a smart soil pro, an instrument for determining the soil parameters and displaying of fertilizer nutrient recommendations. It also provides crop and soil specific fertilizer recommendations directly to farmers. • Refill Reagent is nothing but part and parcel of Mini Lab, the essential Soil sampling is one of the most important step in any Soil testing program and it measures overall soil fertility and is a good index of soil nitrogen availability etc., The refilling Reagent contains "Soil Testing Chemical" for conducting soil tests. • It is also evident the &quo

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which a commodity is made up of, the end user test is to be applied in arriving at the correct clarification of the commodity.-(2004) 38 APSTJ 199 (STAT) Vijaya Ganesh Mill Stores v. State of A.P. 6. The issue before us is to determine the classification of "soil testing minilab" and its "Reagent refills". The description of goods falling under Tariff heading 8201 as mentioned at S.No.137 under Notification No. 2/2017 is reproduced below: Sl. No. Chapter/ Heading/ Sub-heading/Tariff item Description of Goods Rate 137 Schedule of notification 2/2017 -Central Tax (Rate) 8201 Agricultural implements manually operated or animal driven i.e. Hand tools, such as spades, shovels, mattocks, picks, hoes, forks and rakes; axes, bill hooks and similar hewing tools; secateurs and pruners of any kind; scythes, sickles, hay knives, hedge shears, timber wedges and other tools of a kind used in agriculture, horticulture or forestry Nil 7. In terms of explanation (iii) and (iv) to N

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ecious or semi-precious stones(natural, synthetic or reconstructed) on a support of base metal, metal carbide or cermet; or (d) Abrasive materials on a support of base metal, provided that the articles have cutting teeth, flutes, grooves, or the like, of base metal, which retain their identity and function after the application of the abrasive. 9. A combined reading of chapter notes and description of goods covered under Tariff heading 8201 reveals that the goods covered under this heading are basically hand tools of a kind used in agriculture, horticulture or forestry. 10. Whereas the main function of the "Soil testing minilab" is todetermine all the important soil parameters i.e., soil pH, EC, Organic Carbon, available nitrogen, phosphorus, potassium, Sulphur and micronutrients like Zinc, boron and iron and hence cannot be classified as a hand tool along with the items of description given under Tariff heading 8201 such as Agricultural implements manually operated or animal

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rganic components of liquids, e.g., traces of metals, phosphates, nitrates, chlorides or integral parameters such as "chemical organic demand"and "Total organic carbons" are classifiable under Tariff heading 9027. SimilarlypH meters used to measure the factor expressing the acidity or alkalinity of a solution or mixture are classifiable under Tariff heading 9027. 13. Hence by applying the General rules for interpretation of Customs Tariff as applicable to GST Tariff, as the functions being performed by "Soil testing minilab" are similar to that of an Instrument/Apparatus for physical or chemical analysis, the "Soil testing minilab" is correctly classifiable under heading 9027 of the GST Tariff. 14. Further, as the applicant has stated that the "Refilling Reagent" is a part of "Soil testing Minilab", the parts and accessories identifiable as being solely or principally for use with the Instruments/Apparatus of heading 9027 are

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GST – States – 01/2018-GST – Dated:- 30-5-2018 – GOVERNMENT OF NAGALAND OFFICE OF THE COMMISSIONER OF STATE TAXES NAGALAND: DIMAPUR Dated Dimapur, the 30th May, 2018 ORDER-01/2018-GST NO. CT/LEG/NGST-ORD/8/17: ln exercise of the powers conferred by sub-section (2) of Section 4 of the Nagaland Goods and Services Tax Act, 2017 (4 of 2017), the Commissioner of State Taxes, Nagaland hereby orders that the following classes of Officers shall exercise the powers under Section 54 and 55 as the territo

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Customs – 90/2018 – Dated:- 30-5-2018 – OFFICE OF THE COMMISSIONER OF CUSTOMS (NS-II) JAWAHARLAL NEHRU CUSTOM HOUSE, NHAVA SHEVA, TAL. URAN, DIST-RAIGAD, MAHARASHTRA – 400 707 F. No. S/12-Gen-Misc-07/2018-19 AM(X) Date: 30.5.2018 PUBLIC NOTICE NO. 90/2018 Subject: Sanction of pending IGST refund claims where the records have not been transmitted from the GSTN to DG Systems and other pending claims -reg. Attention of all the exporters, their authorized representatives and all export promotion is invited to CBEC Circular No. 12/2018-Customs dated 29.05.2018 regarding alternative mechanism for the process of IGST refund. In view of the above, JNCH shall be conducting an IGST refund clearance fortnight from 31st May, 2018 to 14th June, 2018. 2

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ate shall also be submitted to the jurisdictional GST office (Central/ State). Non submission of CA certificate shall affect the future IGST refunds of the exporter. 3. In cases where there is a short payment of IGST i.e. cumulative IGST amount paid against exports and interstate domestic outward supplies together, for the period of July 2017 to March 2018 mentioned in GSTR-3B is less than the cumulative IGST amount indicated in GSTR-1 for the same period, the exporters would have to make the payment of IGST equal to the short payment in GSTR 3B of subsequent months so as to ensure that the total IGST refund being claimed in the Shipping Bill/GSTR-1(Table 6A) is paid. The proof of payment shall be submitted to Assistant/Deputy Commissioner

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o them at a later date. 5. The exporters whose refunds are processed/ sanctioned as above would be required to submit another certificate from Chartered Accountant before 31st October, 2018 to the same Customs office at the port of export to the effect that there is no discrepancy between the IGST amount refunded on exports and the actual IGST amount paid on exports of goods for the period July 2017 to March 2018. A copy of the certificate shall also be submitted to the jurisdictional GST office (Central/ State). Non submission of CA certificate shall affect the future IGST refunds of the exporter. 6. Reference is also invited to Board s Circular 08/2018 dt. 23.03.2018. In consonance of the said Circular, an option has been made available i

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2018 (6) TMI 72 – AUTHORITY FOR ADVANCE RULING – WEST BENGAL – 2018 (13) G. S. T. L. 343 (A. A. R. – GST), [2018] 2 GSTL (AAR) 60 (AAR) – Valuation of a supply – Goods transferred to branches in another state – recipient eligible for full input tax credit – Optical Lenses and Frames for Spectacles and Accessories – transfer from the Head Office in West Bengal to its branches in other states – Section 97(2)(c) of the CGST/ WBGST Act, 2017 – whether such goods supplied to the branches in states other than West Bengal can be valued in terms of the Cost Price under the Second Proviso to Rule 28 of CGST Rules, 2017, instead of 90% of MRP as required under the First Proviso of the same Rule?
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Held that:- The First Proviso to Rule 28, thus, is clear that where goods are supplied to a recipient for further supply as such, the valuation of these goods when transferred from the supplier to the recipient may, at the option of the supplier, be determined at 90% of the price that will be char

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The expression “where the recipient is eligible for full input tax credit”, as used in the Second Proviso to Rule 28 of CGST Rules, 2017, means that the recipient will be eligible to take full input tax credit of the amount of tax paid by the suppler as mentioned in the respective invoice or any other document valid under Section 16(2)(a) of GST Act. – Case Number / ARN 10 of 2018 – Order No. & 07/WBAAR/2018-19 – Dated:- 30-5-2018 – Vishwanath Member And Parthasarathi Dey Member Applicant s representative heard Sri Sandeep Kothari, CFA RULING 1. The Applicant is stated to be a Re-seller and Importer of Sun Glasses, Frames, Lenses, Contact Lenses, etc. having Head Office in West Bengal. Goods, namely, Optical Lenses and Frames for Spectacles and Accessories, are transferred from the Head Office in West Bengal to its branches in other states. Advance Ruling has been sought on whether such goods supplied to the branches in states other than West Bengal can be valued in terms of the

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eligible for full input tax credit , especially in the context of the fact that apart from the trading goods, the Head Office also supplies to these branches non-trading stock like printing &stationery, office equipment, etc. The Applicant states that these non-trading stock are transferred at zero value 3. Rule 28 deals with valuation of a supply when it is made between distinct or related persons. If a person obtains or is required to obtain more than one registration in more than one State and/or Union Territory, then, in accordance to the provisions under Section 25 of the GST Act, each registration shall be treated as distinct persons for the purpose of the GST Act. The Applicant, at the time of Personal Hearing, has informed that separate registrations have been obtained for business establishments in different states. These independently registered business establishments in states other than West Bengal are referred to as branches with Head Office in West Bengal. Supplies

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h reference to specific invoices. Hence all Invoices or documents of like nature under Section 16 of GST Act, of goods for further retail sale or for use in the business (non-trading stock such as stationery and office equipment) transferred to branches considered as distinct persons being located in States other than West Bengal, are valid documents eligible for Input Tax Credit. 5. The First Proviso to Rule 28, thus, is clear that where goods are supplied to a recipient for further supply as such, the valuation of these goods when transferred from the supplier to the recipient may, at the option of the supplier, be determined at 90% of the price that will be charged by the recipient to its customer, not being a related person. The two clauses important to note in this Proviso are: a) goods received by the recipient are to be sold to a customer not being a related person and b) the determination of value at 90% of the price that will be charged by the recipient to this customer is an

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or the purpose of any business and partly for other purposes, the amount of credit shall be restricted to so much of the input tax as is attributable to the purposes of his business. In other words, the expression where the recipient is eligible for full input tax credit , is to be considered in the light of Section 17(1) of GST Act, to mean that the recipient will be eligible to take full input tax credit of the amount of tax paid by the suppler as mention in the respective invoice or any other document valid under Section 16(2)(a) of GST Act. In view of the foregoing we rule as under RULING The Applicant has the option of not supplying goods to its branches under the First Proviso of Rule 28 and is eligible to value these goods by applying the terms of the Second Proviso to Rule 28 of GST Act. The expression where the recipient is eligible for full input tax credit , as used in the Second Proviso to Rule 28 of CGST Rules, 2017, means that the recipient will be eligible to take full i

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2018 (6) TMI 38 – AUTHORITY FOR ADVANCE RULING – WEST BENGAL – 2018 (13) G. S. T. L. 337 (A. A. R. – GST), [2018] 2 GSTL (AAR) 59 (AAR) – Classification of supply – Activity of Printing content supplied by the customers on photographic paper – whether it is supply of goods or service and whether the activity carried out by the Applicant is taxable under HSN 4911 or SAC 9989? – Held that:- Supply of printed pictures and photographs and similar items, reproduced with the aid of computer or any other device, is classifiable under Heading 4911 of the First Schedule of the Custom Tariff Act, 1975 which is aligned to the GST Act for the purpose of classification.
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The photo prints supplied by them to their customers are not marketable commodities in the open market and as goods they have no value to persons other than the specific customer who provides the input content. Hence, it is clear that, the printed material have no value as independent goods – The Applicant, therefore, cannot

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dmissible on this question under section 97(2)(a) of the CGST/WBGST Act, 2017 (hereinafter the GST Act). The Applicant also declares that the issue raised in the application is not pending or decided in any proceedings under any provisions of the GST Act. The officer concerned raises no objection to the admission of the application. The Application is, therefore, admitted. 2. According to the Applicant, the customers who wish to publish posters, pictures, photographs, design layouts etc. provide the content as files on digital media such as CD, DVD, HDD or pen drive. The file is transferred to the printer through a computer and the printer exposes the contents of the file on to the photographic paper. Digital images so obtained on light sensitive photographic paper are further processed in photographic chemical. This activity from printing to processing is done either with Fuji Frontier Digital Minilab by means of laser exposure or with Durst Theta 76 HS Digital Printer by means of LED

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aterials or prints which are supplied as such. It, however, appears from the application and the argument of the Applicant at the time of Personal Hearing that the content of the printed matters referred to above, is not being supplied, but only printing service is being provided to the customers. In other words, the content of the printed matter is specific to the customer, and, neither is the matter pre-printed, nor has the Applicant any ownership to the content at any point of time, and, therefore, cannot transfer title of the above printed matters. Transfer of the title in goods is a supply of goods [Paragraph no. 1(a) of Schedule II to the GST Act]. Hence, transfer of ownership is an essential condition for supply of goods. The photo prints supplied by them to their customers are not marketable commodities in the open market and as goods they have no value to persons other than the specific customer who provides the input content. Hence, it is clear that, the printed material have

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Goods and Services Tax – 45/19/2018 – Dated:- 30-5-2018 – Circular No. 45/19/2018-GST F. No. CBEC/20/16/4/2018-GST Government of India Ministry of Finance Department of Revenue Central Board of Indirect Taxes and Customs GST Policy Wing New Delhi, Dated the 30th May, 2018 To, The Principal Chief Commissioners/Chief Commissioners/Principal Commissioners/ Commissioners of Central Tax (All) The Principal Directors General/ Directors General (All) Madam / Sir, Subject: Clarifications on refund related issues – reg. The Board vide Circular No. 17/17/2017 – GST dated 15th November 2017, No. 24/24/2017 – GST dated 21st December 2017 and No. 37/11/2018 – GST dated 15th March, 2018 has laid down the procedure for manual filing and processing of different types of refund claims under GST and clarified the exports related refund issues. 2. Representations have been received seeking clarification on certain refund related issues. In order to clarify these issues and with a view to ensure uniformi

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.2 In this regard, attention is invited to sub-section (1) of section 37 of the CGST Act read with rule 59 of the Central Goods and Services Tax Rules, 2017 (CGST Rules for short) which mandates that every registered person, other than an Input Service Distributor or a non-resident taxable person or a person paying tax under the provisions of section 10 or section 51 or section 52, shall furnish the details of outward supplies of goods or services or both effected during a tax period in FORM GSTR-1. Further, as per sub-section (2) of section 39 of the CGST Act read with rule 62 of the CGST Rules, a composition taxpayer is required to furnish the return in FORM GSTR-4; as per sub-section (4) of section 39 of the CGST Act read with rule 65 of the CGST Rules, an ISD is required to furnish the return in FORM GSTR-6 and as per sub-section (5) of section 39 of the CGST Act read with rule 63 of the CGST Rules, a non-resident taxable person is required to furnish the return in FORM GSTR-5. 3.3

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loper or a Special Economic Zone unit on payment of integrated tax. They have shown such supplies in the Table under column 3.1(a) instead of showing them in column 3.1(b) of FORM GSTR-3B whilst they have shown the correct details in Table 6A or 6B of FORM GSTR-1 for the relevant tax period and duly discharged their tax liabilities. Such registered persons are unable to file the refund application in FORM GST RFD-01A for refund of integrated tax paid on the export of services or on supplies made to a SEZ developer or a SEZ unit on the GST common portal because of an in-built validation check in the system which restricts the refund amount claimed (integrated tax/cess) to the amount of integrated tax/cess mentioned under column 3.1(b) of FORM GSTR-3B (zero rated supplies) filed for the corresponding tax period. 4.2 In this regard, it is clarified that for the tax periods commencing from 01.07.2017 to 31.03.2018, such registered persons shall be allowed to file the refund application in

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credit of input tax may be availed for making zero rated supplies. Further, as per section 8 of the Goods and Services Tax (Compensation to States) Act, 2017, (hereafter referred to as the Cess Act), all goods and services specified in the Schedule to the Cess Act are leviable to cess under the Cess Act; and vide section 11 (2) of the Cess Act, section 16 of the IGST Act is mutatis mutandis made applicable to inter-State supplies of all such goods and services. Thus, it implies that all supplies of such goods and services are zero rated under the Cess Act. Moreover, as section 17(5) of the CGST Act does not restrict the availment of input tax credit of compensation cess on coal, it is clarified that a registered person making zero rated supply of aluminum products under bond or LUT may claim refund of unutilized credit including that of compensation cess paid on coal. 5.3 Such registered persons may also make zero-rated supply of aluminum products on payment of integrated tax but they

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ds or services or both under bond or letter of undertaking (LUT) or makes such supply on payment of integrated tax. 6.2 However, in case of zero rated supply of exempted or non-GST goods, the requirement for furnishing a bond or LUT cannot be insisted upon. It is thus, clarified that in respect of refund claims on account of export of non-GST and exempted goods without payment of integrated tax; LUT/bond is not required. Such registered persons exporting non-GST goods shall comply with the requirements prescribed under the existing law (i.e. Central Excise Act, 1944 or the VAT law of the respective State) or under the Customs Act, 1962, if any. 6.3 Further, the exporter would be eligible for refund of unutilized input tax credit of central tax, state tax, union territory tax, integrated tax and compensation cess in such cases. 7. What is the scope of the restriction imposed by rule 96(10) of the CGST Rules, regarding non-availment of the benefit of notification Nos. 48/2017-Central Tax

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received goods from registered persons availing the benefits of these notifications since the exporter did not directly procure these goods without payment of tax or at reduced rate of tax. 7.3 Thus, the restriction under sub-rule (10) of rule 96 of the CGST Rules is only applicable to those exporters who are directly receiving goods from those suppliers who are availing the benefit under notification No. 48/2017-Central Tax dated the 18th October, 2017, notification No. 40/2017-Central Tax (Rate) dated the 23rd October, 2017, or notification No. 41/2017-Integrated Tax (Rate) dated the 23rd October, 2017 or notification No. 78/2017-Customs dated the 13th October, 2017 or notification No. 79/2017-Customs dated the 13th October, 2017. 7.4 Further, there might be a scenario where a manufacturer might have imported capital goods by availing the benefit of Notification No. 78/2017-Customs dated 13.10.2017 or 79/2017-Customs dated 13.10.2017. Thereafter, goods manufactured from such capital

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Goods and Services Tax – GST – Intent to sell unit along with all assets and liabilities – The transaction of transfer of business as a whole of one of the units of the Applicant in the nature of a go

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Goods and Services Tax – NACIN has been notified as the authority for conducting the examination for GST Practitioners under rule 83 (3) of the CGST Rules, 2017. – TMI Updates – Highlights

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Goods and Services Tax – GST – levy of Priority Sector Lending Certificate (PSLC) brought under Reverse Charge Mechanism (RCM) – Notification as amended – TMI Updates – Highlights

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Goods and Services Tax – Started By: – SARAVANAN RENGACHARY – Dated:- 29-5-2018 Last Replied Date:- 29-5-2018 – Dear Experts,As per recent Maharastra Advance Ruling, GST is applicable on Liquidated Damages.Generally, Invoices are raised for full value with applicable GST as per the PO. Though the delivery is delayed and i.e. 10% LD is applicable, as accounting practice, invoice is raised for full value and GST on such full value is paid.Customer will release the payment after deducting 10% LD. Such deducted amount will be treated as expenses in the books of supplier. Scenario after Advance ruling:It seems that the supplier has to raise the invoice for full value with GST and the customer has to release the payment for full and separately r

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amount shall be discharged by the receiver of services under reverse charge mechanism provided the recipient of services must be a business entity located in taxable territory. In order to substantiate our view, we would like to draw your kind attention towards entry no 5 of Notification No. -13/2017-Central Tax Rate dated 28.06.2017 and the same reads as under:- 5 Services supplied by the Central Government, State Government, Union territory or local authority to a business entity excluding, – (1) renting of immovable property, and (2) services specified below- (i) services by the Department of Posts by way of speed post, express parcel post, life insurance, and agency services provided to a person other than Central Government, State Gov

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Goods and Services Tax – GST – By: – Alkesh Jani – Dated:- 29-5-2018 Last Replied Date:- 6-7-2018 – In our earlier discussion, we have gone through the conditions, restriction and manner by which ITC can be taken. In this session, we shall discuss Section 17 of CGST Act, 2017. The whole Section exhibits the different scenario for availing ITC and also goods and/or services, although said goods and/or services has passed the conditions and restriction, for which ITC is not available. In simple language, it can be said that negative list of goods and/or services, for which ITC is not available. 2. Let s start with sub-section (1) of Section 17 of the said Act, which reads as under:- (1) Where the goods or services or both are used by the registered person partly for the purpose of any business and partly for other purposes, the amount of credit shall be restricted to so much of the input tax as is attributable to the purposes of his business . From above, it is clear that, if inputs and

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may be prescribed, and shall include supplies on which the recipient is liable to pay tax on reverse charge basis, transactions in securities, sale of land and, subject to clause (b) of paragraph 5 of Schedule II, sale of building . The above sub-section reveals that, when goods and/or services are used for taxable as well as exempted goods or services, the ITC can be utilized to the proportionate to taxable supplies (including exports). To arrive at the eligibility of ITC available in terms of sub-section (1) and (2) of Section 17 of the said Act, the formulae are given in Rule 42 of CGST Rules, 2017. It is important to note that for sub-section (2) the value of goods and/or services includes, the value on which the tax is paid on reverse charge, transaction of securities and sale of land and /or building. 4. The GST Act, is said to be very specific Act. The sub-section (4) of Section17 of the said Act, deals with the ITC available by the banking and financial institution, including n

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serve Bank of India and are statutorily under the supervision of RBI. The banking services is limited to the activities covered by the definition of the term banking given at Section (5) (b) of The Banking Regulation Act,1949, which is as under:- (b) banking means the accepting, for the purpose of lending or investment, of deposits of money from the public, repayable on demand or otherwise, and withdrawal by cheque, draft, order or other wise; In view of above, it implies that as the above mentioned entities may be providing services other than banking services which are classified under HSN code 9971, which may be taxable and/or other than taxable. The sub-section (4) of Section17 of the said Act, stipulates that the entities mentioned therein, shall have the option to comply with sub-section (2) i.e. taxable supply (including export of goods and/or service) and exempted services (please refer Notification No.12/2017-CT (Rates) dated 28.06.2017 as amended from time to time) in either

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

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r section 10; (f) goods or services or both received by a non-resident taxable person except on goods imported by him; (g) goods or services or both used for personal consumption; (h) goods lost, stolen, destroyed, written off or disposed of by way of gift or free samples; and (i) any tax paid in accordance with the provisions of sections 74, 129 and 130 . 5.1 The very first in the negative list for which ITC is not available is motor vehicle . This has been defined at Section 2(28) of Motor Vehicle Act, and is as under:- 28. Motor vehicle or vehicle means any mechanically propelled vehicle adapted for use upon roads whether the power of propulsion is transmitted thereto from an external or internal source and includes a chassis to which a body has not been attached and a trailer; but does not include a vehicle running upon fixed rails or a vehicle of a special type adapted for use only in a factory or in any other enclosed premises or a vehicle having less than four wheelsfitted with

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another, for transportation of passengers, imparting training, the ITC is available. Here the question arises is that if the said car is booked as a capital goods in the book of accounts, the depreciation under Income Tax Act, may be availed or else ITC under GST. The useful life under GST for capital goods is termed for five years, so before availing ITC proper calculation is required (please refer Rule 43 of CGST Rules,2017). Moreover, ITC is made available if the said motor vehicle is used for imparting training on driving i.e. ITC available for driving school. The ITC is also available if the said vehicle is used for transportation of goods. Summarizing above, it can be said that ITC on motor vehicle or conveyance is available only if it is used for further supply, for transportation of passengers or goods and for imparting training. 5.3 Further, in terms of clause (i) of sub-section (b), food and beverages, outdoor catering, beauty treatment, health services, cosmetic and plastic

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ned, rent-a-cab, which is not mentioned in HSN code, is mentioned under this clause. The reason may be under any guise, ITC is not available. The most discussed issue is transportation facility extended to employee by staff bus or whatever name called, ITC is not available as Motor vehicles if used for supply of above mentioned taxable services namely, transportation of passengers, imparting training or transportation of goods. The pickup and drop of the employee is not notified under any law and same is not falling within the ambit of above clause. The ITC for any travel benefit extended to employee on vacation such as leave or home travel concession, is also not available. Here, it is pertinent to note that services and/or goods from employer to employee is specifically mentioned at various section and schedules, any other than those shall be dealt with one s own wisdom. 5.6 Proceeding to sub-section (c) and (d) of the Section17 of the said Act, it can be said that ITC with regards t

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e for composition scheme, under Section10, goods and/or services is supplied by non-resident taxable person, other than goods and/or services imported by him. Moreover, if goods and/or services are used for personal consumption, ITC is not available, the same concept of erstwhile law. 5.8 If goods are lost, stolen, destroyed or written off or gifted or free sample, ITC if availed is required to be reverse. The same concept continues in GST regime. No ITC is available if taxes paid in terms of notice for non-payment, short payment or erroneously refunded, or taxes paid on detention, seizure of goods and/or conveyance, or confiscation of goods and conveyance (Section 74,129 and 130 of the said Act.). 6. As plant and machinery has already been discussed in our earlier session, it is not wise to repeat the same here. The sub-section (6) of Section17, mandates for manner in which credit attributed for sub-section ( &((2), in this regard, Rules 42 of CGST Rules, 2017 may be referred. 7.

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the course or furtherance of business or on his own account. (viii) Goods and /or services provided by composition dealer or non-resident taxable person, however, if goods are imported by non-resident taxable person ITC is available and not for the services imported by him. (ix) Goods and/or services if used for personal consumption, if goods are lost, stolen, destroyed, written off or disposed of by way of gift or free samples, ITC if availed is required to be reversed. (x) Any taxes paid in terms of section 74,129 and 130 of CGST Act, 2017, ITC not available. 8. In conclusion of this session, it is reiterated that as no case law has attained its finality and each case has its own facts and circumstances, therefore, to arrive at any conclusion one must rely on own wisdom and knowledge. We shall deal with Section 18 in our next part. A small effort has been made, but I would say take the best and leave the rest . As thanks giving is one of the non-GST supplies, I thank all the readers

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Goods and Services Tax – GST – By: – Dr. Sanjiv Agarwal – Dated:- 29-5-2018 – Goods and Services Tax (GST), introduced from July 1, 2017 is more than ten months old now but has resulted in operational and implementation disruptions affecting all stakeholders. GST law, as drafted and legislated, is not free from the interpretational hassles. GST Council his however, making regular changes to fix the anomalies and hardships faced by taxpayers. Taxpayers have already started challenging various provisions of GST laws and rules framed thereunder with more than 180 writs being filed in different courts. High courts and Supreme court have taken a liberal stand so far in view of the fact that law is new and is yet evolving. However, CBIC may move to Supreme court where the verdict is against the Government. This has also been indicated in Circular No. 39 dated 03.04.2018 wherein it is has been hinted in relation to resolution of struck TRAN-1 and filing of GSTR-3B that Government has not acc

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otels and restaurants. Appellant pleaded that transaction consisting predominantly of a service, and not of a sale of drinking water and consisted of a composite charge which included incidental charges for food, drinks etc. The Single Judge finally held that charging prices for mineral water in excess of MRP printed on the packaging, during the service of customers in hotels and restaurants does not violate any of the provisions of the Standards of Weights and Measures Act, 1976 as this does not constitute a sale or transfer of these commodities by the hotelier or restaurateur to its customers. Appellant association filed Writ Petition seeking a declaration that provisions of Standards of Weights and Measures Act, 1976, Standards of Weights and Measures (Enforcement) Act, 1985 and Standards of Weights and Measures (Packaged Commodities) Rules, 1977 were not applicable to services rendered in premises of hotels/restaurants as sale of food and drinks in hotels consisted of a composite c

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petitioner was an assessee under Kerala VAT Act and desired to file revised returns for the period 2014-15 and 2015-16 and permission for revision was pending with authorities, the court directed the authorities to decide application within one month from date of receipt of this order in terms of Circular No. 14/2017 issued under SGST Act, 2017 on right of assessees to submit revised return. In M. Bagulayan v. Superintendent of Central GST & Central Excise (2018) 2 TMI 194 (Madras); where the petitioner had been levied with tax. The demand so raised was accepted by petitioner and same was duly paid. However, petitioner was still liable to pay interest thereon. Since petitioner submitted that he had paid 25 per cent of interest liability, he was permitted to remit balance payment in five equal monthly installments by the Court. In Etten Craft Holding Pvt. Ltd. v. State of Kerala 2018 (5) TMI 1280 (Kerala), where the petitioner filed the writ for directing the respondent to notify A

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goods was not accompanied by the \necessary declaration in Form KER II. The assessee filed a writ seeking release of goods. It was contested that the competent authority had not enabled the generation of KER II declaration in the website and as such, it was impossible for the transporter to download the KER II declaration electronically and it was under those circumstances that the detention was necessitated. It was directed to the adjudicating authority to complete the adjudication process in connection with the detention within a period of one week. While adjudicating the matter, the Adjudicating Authority shall take note of the contention of the assessee that it was on account of the non-availability of Form KER II in the website that the transporter was disabled from producing the same at the time of transportation of the goods. The challenge to the vires of the rules was kept open. Court followed its own judgment in CTO v. Madhu M.B. 2017 (9) TMI 1044 – KERALA HIGH COURT ; (Some m

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GST – States – G.S.R.32/P.A.5/2017/S.164/Amd.(13)/2018 – Dated:- 29-5-2018 – GOVERNMENT OF PUNJAB DEPARTMENT OF EXCISE AND TAXATION (EXCISE AND TAXATION-II BRANCH) NOTIFICATION The 29th May, 2018 No. G.S.R.32/P.A.5/2017/S.164/Amd.(13)/2018.- In exercise of the powers conferred by section 164 of the Punjab Goods and Services Tax Act, 2017 (Punjab Act No. 5 of 2017) and all other powers enabling him in this behalf, the Governor of Punjab, on the recommendations of the Council, is pleased to make the following rules further to amend the Punjab Goods and Services Tax Rules, 2017, namely:- RULES 1. (1) These rules may be called the Punjab Goods and Services Tax (Fifth Amendment) Rules, 2018. (2) They shall be deemed to have come into force on and with effect from the 7th day of March, 2018. 2. In the Punjab Goods and Services Tax Rules, 2017 (hereinafter referred to as the said rules), in rule 117, in sub-rule (4), in clause (b), for sub-clause (iii), the following shall be substituted, na

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information relating to the said goods as specified in Part A of FORM GST EWB-01, electronically, on the common portal along with such other information as may be required on the common portal and a unique number will be generated on the said portal: Provided that the transporter, on an authorization received from the registered person, may furnish information in Part A of FORM GST EWB-01, electronically, on the common portal along with such other information as may be required at the common portal and a unique number will be generated on the said portal: Provided further that where the goods to be transported are supplied through an e-commerce operator or a courier agency, on an authorization received from the consignor, the information in Part A of FORM GST EWB-01 may be furnished by such e-commerce operator or courier agency and a unique number will be generated on the said portal: Provided also that where goods are sent by a principal located in one State to a job worker located in

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in an invoice, a bill of supply or a delivery challan, as the case may be, issued in respect of the said consignment and also includes the Central tax, State or Union territory tax, integrated tax and cess charged, if any, in the document and shall exclude the value of exempt supply of goods where the invoice is issued in respect of both exempt and taxable supply of goods. (2) Where the goods are transported by the registered person as a consignor or the recipient of supply as the consignee, whether in his own conveyance or a hired one or a public conveyance, by road, the said person shall generate the e-way bill in FORM GST EWB-01 electronically on the common portal after furnishing information in Part B of FORM GST EWB-01. (2A) Where the goods are transported by railways or by air or vessel, the e-way bill shall be generated by the registered person, being the supplier or the recipient, who shall, either before or after the commencement of movement, furnish, on the common portal, th

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their option, generate the e-way bill in FORM GST EWB-01 on the common portal in the manner specified in this rule: Provided also that where the goods are transported for a distance of upto fifty kilometers within the State or Union territory from the place of business of the consignor to the place of business of the transporter for further transportation, the supplier or the recipient, or as the case may be, the transporter may not furnish the details of conveyance in Part B of FORM GST EWB-01. Explanation 1.- For the purposes of this sub-rule, where the goods are supplied by an unregistered supplier to a recipient who is registered, the movement shall be said to be caused by such recipient if the recipient is known at the time of commencement of the movement of goods. Explanation 2.- The e-way bill shall not be valid for movement of goods by road unless the information in Part-B of FORM GST EWB-01 has been furnished except in the case of movements covered under the third proviso to s

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the e-way bill number to another registered or enrolled transporter for updating the information in Part-B of FORM GST EWB-01 for further movement of consignment: Provided that after the details of the conveyance have been updated by the transporter in Part B of FORM GST EWB-01, the consignor or recipient, as the case may be, who has furnished the information in Part-A of FORM GST EWB-01 shall not be allowed to assign the e-way bill number to another transporter. (6) After e-way bill has been generated in accordance with the provisions of sub-rule (1), where multiple consignments are intended to be transported in one conveyance, the transporter may indicate the serial number of e-way bills generated in respect of each such consignment electronically on the common portal and a consolidated e-way bill in FORM GST EWB-02 may be generated by him on the said common portal prior to the movement of goods. (7) Where the consignor or the consignee has not generated FORM GST EWB-01 and the aggre

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lly, if the mobile number or the e-mail is available. (9) Where an e-way bill has been generated under this rule, but goods are either not transported or are not transported as per the details furnished in the e-way bill, the e-way bill may be cancelled electronically on the common portal within twenty four hours of generation of the e-way bill: Provided that an e-way bill cannot be cancelled if it has been verified in transit in accordance with the provisions of rule 138B: Provided further that the unique number generated under sub-rule (1) shall be valid for a period of fifteen days for updation of Part B of FORM GST EWB-01. (10) An e-way bill or a consolidated e-way bill generated under this rule shall be valid for the period as mentioned in column (3) of the Table below from the relevant date, for the distance, within the country, the goods have to be transported, as mentioned in column (2) of the said Table:- Sl. No. Distance Validity period (1) (2) (3) 1. Upto 100 km. One day in

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all be counted as the period expiring at midnight of the day immediately following the date of generation of e-way bill. Explanation 2.- For the purposes of this rule, the expression Over Dimensional Cargo shall mean a cargo carried as a single indivisible unit and which exceeds the dimensional limits prescribed in rule 93 of the Central Motor Vehicle Rules, 1989, made under the Motor Vehicles Act, 1988. (11) The details of e-way bill generated under sub-rule (1) shall be made available to the- (a) supplier, if registered, where the information in Part A of FORM GST EWB-01 has been furnished by the recipient or the transporter; or (b) recipient, if registered, where the information in Part A of FORM GST EWB-01 has been furnished by the supplier or the transporter, on the common portal, and the supplier or the recipient, as the case may be, shall communicate his acceptance or rejection of the consignment covered by the e-way bill. (12) Where the person to whom the information specified

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such amount as the Commissioner of State Tax, in consultation with the Principal Chief Commissioner/Chief Commissioner of Central Tax, may, subject to conditions that may be specified, notify; (e) where the goods being transported, as specified in the Schedule appended to notification No.S.O.18/P.A.5/2017/S.11/2017 dated 30th June, 2017 published in the Punjab Government Gazette (Extraordinary), Part III, the 30th June, 2017 as amended from time to time, other than de-oiled cake; (f) where the goods being transported are alcoholic liquor for human consumption, petroleum crude, high speed diesel, motor spirit (commonly known as petrol), natural gas or aviation turbine fuel; (g) where the goods being transported are treated as no supply under Schedule III of the Act; (h) Where the goods are being transported- (i) under customs bond from an inland container depot or a container freight station to a customs port, airport, air cargo complex and land customs station, or from one customs stat

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nce with rule 55. Explanation. – The facility of generation, cancellation, updation and assignment of e-way bill shall be made available through SMS to the supplier, recipient and the transporter, as the case may be. ANNEXURE [(See rule 138 (14)] S. No. Description of Goods (1) (2) 1. Liquefied petroleum gas for supply to household and non domestic exempted category (NDEC) customers 2. Kerosene oil sold under PDS 3. Postal baggage transported by Department of Posts 4. Natural or cultured pearls and precious or semi-precious stones; precious metals and metals clad with precious metal (Chapter 71) 5. Jewellery, goldsmiths and silversmiths wares and other articles (Chapter 71) 6. Currency 7. Used personal and household effects 8. Coral, unworked (0508) and worked coral (9601) 138A. Documents and devices to be carried by a person-in-charge of a conveyance:-The person in charge of a conveyance shall carry- (a) the invoice or bill of supply or delivery challan, as the case may be; and (b) a

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ed on any conveyance has been done during transit at one place within the State or in any other State, no further physical verification of the said conveyance shall be carried out again in the State, unless a specific information relating to evasion of tax is made available subsequently. 138D. Facility for uploading information regarding detention of vehicle.-Where a vehicle has been intercepted and detained for a period exceeding thirty minutes, the transporter may upload the said information in FORM GST EWB-04 on the common portal. 4. In the said rules, for FORM GST EWB-01, FORM GST EWB-02, FORM GST EWB-03, FORM GST EWB-04 and FORM GST INV-1, the following forms shall be substituted, namely:- FORM GST EWB-01 (See rule 138) E-Way Bill : E-Way Bill No. : E-Way Bill date : Generator : Valid from : Valid until : PART-A A.1 GSTIN of Supplier A.2 Place of Dispatch A.3 GSTIN of Recipient A.4 Place of Delivery A.5 Document Number A.6 Document Date A.7 Value of Goods A.8 HSN Code A.9 Reason f

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A.1 or, as the case may be, A.3 7. Reason for Transportation shall be chosen from one of the following:- Code Description 1 Supply 2 Export or Import 3 Job Work 4 SKD or CKD 5 Recipient not known 6 Line Sales 7 Sales Return 8 Exhibition or fairs 9 For own use 0 Others FORM GST EWB-02 (See rule 138) Consolidated E-Way Bill Consolidated E-Way Bill No. : Consolidated E-Way Bill Date : Generator : Vehicle Number : Number of E-Way Bills E-Way Bill Number FORM GST EWB-03 (See rule138C) Verification Report Part A Name of the Officer Place of inspection Time of inspection Vehicle Number E-Way Bill Number Invoice or Challan or Bill Date Invoice or Challan or Bill Number Name of person in-charge of vehicle Description of goods Declared quantity of goods Declared value of goods Brief description of the discrepancy Whether goods were detained? If not, date and time of release of vehicle Part B Actual quantity of goods Actual value of the Goods Tax payable Integrated tax Central tax State or Union

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nce Packing and Forwarding Charges etc. Total Total Invoice Value (In figure) Total Invoice Value (In Words) Signature Name of the Signatory Designation or Status ; 5. In the said rules, in FORM GST RFD-01, for the DECLARATION [second proviso to section 54(3)], the following shall be substituted, namely:- DECLARATION [second proviso to section 54(3)] I hereby declare that the goods exported are not subject to any export duty. I also declare that I have not availed any drawback of central excise duty/service tax/state taxon goods or services or both and that I have not claimed refund of the integrated tax paid on supplies in respect of which refund is claimed. Signature Name – Designation / Status ; 6. In the said rules, in FORM GST RFD-01A, for the DECLARATION [second proviso to section 54(3)], the following shall be substituted, namely:- DECLARATION [second proviso to section 54(3)] I hereby declare that the goods exported are not subject to any export duty. I also declare that I have

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2018 (8) TMI 19 – CESTAT MUMBAI – TMI – Refund claim – service tax paid on the input services, which were used in output service, exported by the appellant – denial on account of nexus – Rule 5 of the CCR read with N/N. 27/2012-CE(NT) dated 18.06.2012 – Held that:- Under the substituted Rule 5 of the rules, there is no requirement of showing the nexus between the input service and the output service provided by the assessee.
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Since the refund under the said amended rule is governed on the basis of receipt of export turnover to the total turnover, the establishing the nexus between the input and output service cannot be insisted upon for consideration of the refund application – refund cannot be denied – appeal allowed – decided in fav

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input services, which were used in output service, exported by the appellant. While adjudicating the refund claim amount of ₹ 39,51,995/- filed by the appellant, the original authority had allowed the refund benefit for ₹ 32,22,487/- and rejected the balance amount of ₹ 7,29,508/- on the ground that the disputed input services have no nexus with the output services provided by the appellant and that the disputed services are not confirming to the definition of input service defined under Rule 2(l) of Cenvat Credit Rules, 2004. On appeal, the learned Commissioner (Appeals) has allowed the refund benefit for ₹ 3,89,143/- and rejected the balance amount of ₹ 3,40,065/- on the ground that no nexus have been establ

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3.2012 has clarified as under:- F.1. Simplified scheme for refunds: 1. A simplified scheme for refunds is being introduced by substituting the entire Rule 5 of Cenvat Credit Rules, 2004. The new scheme does not require the kind of correlation that is needed at present between exports and input services used in such exports. Duties or taxes paid on any goods or services that qualify as inputs or input services will be entitled to be refunded in the ratio of the export turnover to total turnover. 2. ……………………………………………………………………… 3. On perusal of the statutory

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2018 (7) TMI 142 – AUTHORITY FOR ADVANCE RULING, KERALA – 2018 (13) G. S. T. L. 426 (A. A. R. – GST), [2018] 2 GSTL (AAR) 52 (AAR) – Rate of tax – nature of use – marine propeller, rudder set, stern tube set, propeller shaft and M.S. Shaft for couplings, used in fishing / floating vessels – applicant is of the opinion that the rate of tax applicable to the above products is 5% as per entry 247 and 252 of Schedule 1 of the Central Notification 1/17 – Held that:- The classification of the commodities under Entry 252 solely depends on the nature of use to which the commodities are put to – commodities such as marine propellers, rudder set, stern tube set, propeller shaft and M.S. Shaft for couplings used only for the purposes of fishing / flo

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dder set, stern tube set, propeller shaft and M.S. Shaft for couplings, has preferred an application for Advance Ruling on the rate of tax of the above commodities used in fishing / floating vessels. 2. The applicant has argued that all the above products are used in fishing/floating vessels. Since the products manufactured by the unit are mainly used for the purpose of fishing and other allied activities, the applicant is of the opinion that the rate of tax applicable to the above products is 5% as per entry 247 and 252 of Schedule 1 of the Central Notification 1/17. 3. The applicant was heard in the matter and the contentions raised were examined. On the basis of the facts disclosed in the application and the submissions made at the time

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3 to 7215 All bars and rods, of iron or non-alloy steel 5. However, parts of fishing vessels, factory ships and other vessels for processing or preserving fishery products are taxable @ 5% by virtue of entry 252 of 1st schedule of SRO 360/2017. Fishing vessels; factory ships and other vessels comes under the HSN code 8902. The said entries read as under: 247 8902 Fishing vessels; factory ships and other vessels for processing or preserving fishery products 252 Any chapter Parts of goods of headings 8901, 8902, 8904, 8905, 8906,8907 Thus, it is clear that the classification of the commodities under Entry 252 solely depends on the nature of use to which the commodities are put to. 6. In view of the aforesaid position, commodities such as mari

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