Goods and Services Tax

CCE & CGST, Delhi – III Versus M/s G.D. Builders
Service Tax
2018 (8) TMI 1107 – CESTAT AHMEDABAD – TMI
CESTAT AHMEDABAD – AT
Dated:- 6-8-2018
Service Tax Appeal No. 54325 of 2015 – ST/A/52731/2018-CU[DB]
Service Tax
Shri C.L. Mahar, Member (Technical) And Ms. Rachna Gupta, Member (Judicial)
Shri G.R. Singh, Authorized Representative (DR) – for the appellant.
Shri A.K. Batra, C.A. and Ms. Vibha Narang, Advocate – for the Respondent.
ORDER
Per. Rachna Gupta:-
The present appeal against the order-in-original No. 23/ST/SVS/DL-III/2015 dated 17/07/2015 with the subsequent review order No. 35/2015-16 dated 20/11/2015.
2. The facts relevant for the purpose of this appeal that the respondent are registered for providing construction of residential complex services, commercial or industrial construction service and the works contract services. The Department during the audit observed that the respondent were paying the service tax after availing the benefit of a

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n the case of CST vs. Bhayana Builders (P) Ltd. – 2018 (10) GSTL 118 (S.C.) and the judgment of Larger Bench of this Tribunal in the case of Bhayana Builders (P) Ltd. – 2013 (32) S.T.R. 499 (Tri. – LB). The respondent has simultaneously rest upon the said judgment. After hearing and pursuing the decision rest upon by the respondent, we observed that the issue involved herein is considered by the Hon'ble Supreme Court, the relevant extract of judgment is reproduced here-in-below :-
“4. The question, therefore, which has fallen for consideration is as to whether, the value of goods/material supplied or provided free of cost by a service recipient and used for providing the taxable service of construction or industrial complex, is to be included in computation of gross amount (charged by the service provider), for valuation of the taxable service, under Section 67 of the Act and for availing the benefits under Notification No. 15/2004-S.T., dated September 10, 2004 as amended by Notifica

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of goods or materials which are supplied by the service recipient. It also makes it clear that valuation of gross amount has a causal connection with the amount that is charged by the service provider as that becomes the element of 'taxable service'. Thirdly, even when the explanation was added vide notification dated March 1, 2005, it only explained that the gross amount charged shall include the value of goods and materials supplied or provided or used by the provider of construction service. Thus, though it took care of the value of goods and materials supplied by the service provider/assessee by including value of such goods and materials for the purpose of arriving at gross amount charged, it did not deal with any eventuality whereby value of goods and material supplied or provided by the service recipient were also to be included in arriving at gross amount 'gross amount charged'.”
4. Relying thereupon, we hold that the issue is no more res-integra and upon relying on above lin

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In Re: CMS Info Systems Ltd.,
GST
2018 (8) TMI 977 – APPELLATE AUTHORITY FOR ADVANCE RULING, MAHARASHTRA – 2018 (15) G. S. T. L. 727 (App. A. A. R. – GST), [2019] 71 G S.T.R. 396 (AAAR)
APPELLATE AUTHORITY FOR ADVANCE RULING, MAHARASHTRA – AAAR
Dated:- 6-8-2018
MAH/AAAR/SS-RJ/04/2018-19
GST
SHRI RAJIV JALOTA, AND SMT. SUNGITA SHARMA MEMBER
PROCEEDING
(under section 101 of the Central Goods and Service Tax Act, 2017 and the Maharashtra Goods and Service Tax Act, 2017)
At the outset, we would like to make it clear that the provisions of both the CGST Act and the MGST Act are the same except for certain provisions. Therefore, unless a mention is specifically made to such dissimilar provisions, a reference to the CGST Act would also mean a reference to the same provisions under the MGST Act. Further, the CGST Act, 2017 and MGST Act, 2017, sometimes, shall also be referred as GST Act.
M/s CMS Info Systems Limited (herein after referred to as the “Appellant”) had fi

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llant purchases raw motor vehicles and requisite fabrication, get them converted to cash carry vans. The appellant also pays GST on fabrication. For this purpose, the appellant purchases motor vehicle and pays GST. Credit of GST is not availed by the appellant presently. While purchasing Cash Carry Vans during pre-GST era, the appellant has paid the Central Excise Duty as well as Value added Tax.
3. When these vans cannot be used further, the appellant sells these motor vehicles as scrap. In certain cases, instead of purchasing motor vehicles, the appellant prefers to hire these motor vehicles.
4. The Appellant had approached the Advance Ruling Authority (AAR) for seeking an advance ruling under Section 97(1) of the CGST Act, in respect of the following questions:
I.  Whether supply of such motor vehicles as scrap after its usage can be treated as supply in the course or furtherance of business and whether such transaction would attract GST? If yes, please provide the rate of G

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applicant has not provided any invoice or has informed tariff heading of these goods. Further, it is also not clear whether after sale these would be usable as vehicles or would be fully scrapped. As the said goods do not appear in the notification no. 2/2017-C.T. (Rate) which exempts the goods from the levy of GST, these taxable supply would be taxed at rates mentioned in the Notification No. 1/2017-C.T. (Rate), which may be referred by the applicant accordingly.
6. Regarding the issue raised in the Question II of the application, wherein it was asked that if the sale of the cash carry van, as scrap after its usage, held a taxable supply, whether Input Tax Credit is available to CMS Info Systems Limited on purchase of such motor vehicles i.e. cash carry vans which are used for cash management business and supplied, post usage, as scrap, there was difference in opinion on this particular issue between two members of the Advance Ruling Authority. Therefore, the matter has been referre

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ion (1) of Section 18, input tax credit shall not be available in respect of the following, namely:-
(a) motor vehicles and other conveyance 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 passenger; or
(C)  Imparting training on driving, flying, navigating such vehicles or conveyances;
(ii) for transportation of goods;
………………
……………..
9. As per the meaning assigned to “goods” under clause (52) to Section 2 of the CGST Act, money is excluded from the ambit of the “goods”. Section 2(52) is reproduced below:
Section 2. Definition – In this Act, unless the context otherwise requires,-
(1)………………..
(2)……………….
(52) “goods” means every kind of movable property other than money and securities but includes actionable claims, growing crops, grass and things attached to or forming part of the land which ar

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order, traveler cheque, money order, postal or electronic remittance or any other instrument recognized by the Reserve Bank of India, only when used as consideration to settle the obligation or exchange with Indian legal tender of another denomination would be considered as “money”.
12. In the instant case, the currency transported by the appellant is for the purpose of carrying out the business of maintaining ATMs by the Appellant and hence, the Appellant are not using the same as a consideration for settling of any obligation. The job assigned to the appellant is for the transportation of currency to the desired destination as per their customer banks and while carrying out the activity of transportation, the said currency is plain goods for the Appellants and cannot be used/is not used in exchange of other Indian legal tender of another denomination.
13. In other words, although in general understanding, what is being transported by the appellants is currency or cash or money, fr

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(5)(a)(ii) of CGST Act.
16. Section 2 of the CGST Act assigning meanings to various terms used under CGST Act begins with the expression “In this act, unless context otherwise requires”. Normally, the term 'means' makes the definition exhaustive one but such exhaustive definition has to be departed from if the definition section opens with the word “unless context otherwise requires” if there be something in the context to show that the definition could not be applied.
17. In the present case, the context in which the cash carry vans are used for transportation of currency is that the goods of the customer banks are transported by the Appellant and not the money as defined under Section 2 (75) of the CGST Act as the said currency cannot be used as money as understood in the common parlance. Further, the intention of the legislature in excluding money from the definition of “goods” is not to levy CGST on supply of money as otherwise CGST is leviable on supplies of intra- state

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ttached to a motor car or the personal luggage of passengers travelling in the vehicle;
(14) 'goods carriage' means any motor vehicle constructed or adapted for use solely for the carriage of goods, or any motor vehicle not so constructed or adapted when used for the carriage of goods;
(47) 'transport vehicle' means a public service vehicle, a goods carriage, an educational institutions bus or a private service vehicle;
……………
……………
20. Notification No. 2/2017-Central Tax (Rate) dated 28.06.2017 at Sr. No. 117 provides full exemption for Rupee notes when sold to Reserve Bank of India falling under chapter/heading 48/4907 would also substantiate the Appellants' claim that currency is covered under “goods”.
21. The certificate of registration and also certificate of fitness issued by the Motor Vehicle Department of Govt, of Maharashtra certifying cash carrying vans to be a 'goods carrier' and 'goods vehicle' also support the Ap

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teena- 2015 (329) ELT 750 (GOI)
25. The Applicant refers to the view expressed by both the Hon'ble Members to the effect that there is no issue of admissibility when the vehicle is carrying bullion. In the present case vehicle is capital goods under Section 2 (19) and hence even if it is used in stray cases in transportation of bullion input tax credit is admissible as there is no bar from taking credit and in any case, the Appellant are not making any exempt supplies.
26. With the above submission and those made in their applications and additional submissions, it is humbly prayed for holding that Appellant are eligible and entitled for input tax credit of GST paid by them to vehicle manufacturers for supply of standard vehicles and GST paid on the fabrication. The Appellate Authority for Advance Ruling may also be pleased to hold cash carry vans would be covered under exclusion clause of 17(5)(a)(ii) of CGST.
SUBMISSION MADE BY THE RESPONDENT
27. In response to the above subm

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e banking industry also the money is not goods. Therefore, in the context of the situation in which the appellant is working, 'money' cannot be considered as 'goods'. Accordingly, only because the definition of 'goods' under the CGST Act, 2017, contains the phrase “unless the context otherwise require” does not mean that, the context of the appellant requires a definition of goods is different from one as prescribed in the CGST Act, 2017.
30. The appellant contention that provision of Motor Vehicle Act and the exclusion of money from the scope of e-Way bill should take precedence over the provisions of the CGST Act, 2017, has been made without having any rational or basis. It is emphasized that the CGST Act has provided an unambiguous and clear definition of 'goods'. Therefore, there is no need for resorting to the provisions of Motor Vehicle Act for looking for the meaning of 'goods'. Further, the exclusion of the 'money' from the scope

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ortation of “money” as the transportation of “goods”. Further to substantiate their claim, they also cited court rulings.
33. Countering the arguments made by the Appellant, Shri Anil Kumar, Supdt., the departmental Representative, inter alia, stressed on the definition of 'goods' provided under Section 2(52) of the CGST Act, arguing that the definition of the 'goods' provided in the statute clearly excludes money from its purview, and under no circumstances can be treated as goods. To corroborate their claim, he argued that the cash carry van used for transporting money is not an ordinary vehicle, but a special purpose vehicle, which is deployed for transport of the currency under the supervision of the security guards carrying arms with them and 2 other supervisors as per the guidelines prescribed by the Reserve Bank of India dated 06.04.2018. Thus the money transported by the said special purpose vans, is different from 'goods' defined under the GST law, sin

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ncy that is held for its numismatic value. Since the cash carry vehicles are deployed to carry cash and bullion for other than for numismatic purposes, the cash carried by them is to be construed as money and not goods.
 
36. It has also come to our notice from the Press Note dated 21st July 2018, available in open source, on the subject of Recommendations made during the 28l meeting of the GST Council held in New Delhi on 21st July, 2018 titled 'Amendments to the CGST Act, 2017, IGST Act, 2017, UTGST Act 2017, and GST (Compensation to States) Act, 2017' that the 28th GST Council in their meeting held on 21/07/2018 has inter alia proposed to widen the scope of the ITC to cover the ITC even in respect of motor vehicles used for transportation of money for or by a banking company or financial institution, as quoted below:
PRESS NOTE July 21, 2018
Recommendations made during the 28t meeting of the GST Council held in New Delhi on 21st July, 2018 Amendments to the CGST Act

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to its employees, under any law for the time being in force……….
This new fact, which has come before us during the course of deciding the instant issue, also needs to be considered solemnly, before concluding our observation in the present case. The fact that the GST Council, the recommendation of which body forms the basis for formulation of the legislature related to GST, has felt the need for widening the scope of ITC by allowing the ITC in respect of motor vehicles used for transportation of money for or by a banking company or financial institution, which were previously not available to them, clearly shows that the intention of the legislature was earlier to not treat 'money' as 'goods', as defined under Section 2(52) of the CGST Act. Now the GST Council have recommended to the Government to lay before the legislature an amendment in the provision which will extend the benefit of ITC in respect of the motor vehicles, used for transportation of money for or

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the latter half of the clause (b) of Section 8(3) of the Central Sales Tax Act, 1956 will include the “newspaper” even after the amendment of the said act in order to extend the benefit of the concessional rate of Central Sales Tax payable by the publishers on the inter-state purchase of raw materials under the notion that the Appellant cannot be in more unfavorable position as the intention of the legislature was not to increase the tax burden on the printers or publishers of the newspaper. Thus, it has been argued that the Supreme Court had deviated from the plain or literal meaning of the amended definition of the “goods” under the Central Sales Tax Act and has gone on to extract the meaning of the expression of “goods” by following the Golden Rule of interpretation as the literal meaning was leading to the unintended result and absurdity. However, in the instant case, neither had there been any amendment in the GST law nor were there any benefits continuing to the Appellant, which

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ent interpretation of the meaning of goods.
(c)  Thomas Cook (India) Ltd. v. Collector of Customs, New Delhi [1994(71) E.L.T. 724 (Tri)].
The cited case is related to the confiscation of the foreign currency exported by post parcels in violation of the provisions and rules prescribed under Customs Act, 1962 and Foreign Exchange Regulation Act, 1973. In the instant case, the money, which has been clearly defined in the CGST Act, is being transported by the Appellant at the behest of the Banks under the contracts entered with them. Further, “goods” has also been defined in the CGST Act, which clearly excludes money from its ambit. Thus it is very much clear that the things which are being transported by the Appellant is “money” which cannot be treated as “goods” as explained above.
Therefore, in the instant case, there is no need to derive the interpretation of the “goods” from the Customs Act or Foreign Exchange Regulation Act, when the same is clearly defined under the CGST Act

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Motor Vehicle Act, 1988, does not include luggage or personal effects carried in a motor car or in a trailer attached to a motor car or the personal luggage of passengers travelling in the vehicle, which does not hold good in terms of the provision made in the CGST Act,2017. Accordingly, reliance placed by the Appellant upon the definition of the “goods” provided under the Motor Vehicles Act, 1988 is not relevant in the instant case. Also, the provisions under the CGST Act being independent and not made referential to the provisions under the Motor Vehicles Act, the clarification under the said act is not germane to the issue.
(f)  As regards the reliance placed by the Appellant on Rule 138(14) which carves out goods the transportation of which would not require the preparation of e-way bill, we agree with the view of the Jurisdictional Officer that the exclusion of the 'money' from the scope of the e- way bill has no bearing on the definition of the 'goods' prov

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nterpreted for suiting the requirement of any individual as claimed by the Appellant. If 'Money' is not covered as 'Goods' in the definition of 'Goods' under CGST Act, then it is not 'goods' for everyone and it cannot be said that it is not 'goods' for general perception and it is 'goods' for the Appellant.
The argument of the Appellant that, although in general understanding, what is being transported by the appellants is currency or cash or money, from the Appellant's point of view or for the appellant, what is transported is 'goods' and not 'money', does not support their cause, as the definitions provided in Acts are universal and same cannot be interpreted for suiting the requirement of any individual as claimed by the Appellant. If 'Money' is not covered as 'Goods' in the definition of 'Goods' under CGST Act, then it is not 'goods' for everyone and it cannot be said that it is not

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Seeks to exempt payment of tax under section 9(4) of the CGST Act, 2017 till 30.09.2019.
(22/2018) FD 48 CSL 2017 Dated:- 6-8-2018 Karnataka SGST
GST – States
Karnataka SGST
Karnataka SGST
FINANCE SECRETARIAT
NOTIFICATION (22/2018)
No: FD 48 CSL 2017, Bengaluru, dated: 06-08-2018.
In exercise of the powers conferred by Sub-Section (1) of Section 11 of the Karnataka Goods and Services Tax Act, 2017 (27 of 2017), the Government Of Karnataka, on being satisfied that it is necessar

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Notification to lay down the special procedure for completing migration of taxpayers who received provisional IDs but could not complete the migration process under HGST Act, 2017.
73/GST-2 Dated:- 6-8-2018 Haryana SGST
GST – States
Haryana SGST
Haryana SGST
HARYANA GOVERNMENT
EXCISE AND TAXATION DEPARTMENT
Notification
The 6thAugust, 2018
No.73/GST-2 In exercise of the powers conferred by section 148 of the Haryana Goods and Services Tax Act, 2017 (19 of 2017), the Governor of Haryana, on the recommendations of the Council, hereby specifies the persons who did not file the complete FORM GST REG-26 of the Haryana Goods and Services Tax Rules, 2017 but received only a Provisional Identification Number (PID) (hereinafter re

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Email id
5b
Mobile
6
Reason for not migrating in the system
7
Jurisdiction of Officer who is sending the request
(ii) On receipt of an e-mail from the Goods and Services Tax Network (GSTN), such taxpayers should apply for registration by logging onto https://www.gst.gov.in/) in the “Services” tab and filling up the application in FORM GST REG-01 of the Haryana Goods and Services Tax Rules, 2017.
(iii) After due approval of the application by the proper officer, such taxpayers will receive an email from GSTN mentioning the Application Reference Number (ARN), a new GSTIN and a new access token.
(iv) Upon receipt, such taxpayers are required to furnish the following details to GSTN by e-mail, on or before the 30th September, 2018, to

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M/s Shree Ram Lime Products Private Limited Versus Union Of India And Ors.
GST
2018 (8) TMI 587 – RAJASTHAN HIGH COURT – TMI
RAJASTHAN HIGH COURT – HC
Dated:- 6-8-2018
D. B. Civil Writ No. 11337/2018
GST
MR. PRADEEP NANDRAJOG AND MR. DINESH MEHTA JJ.
For Petitioner(s) : Mr. Prateek Gattani. Mr. Sanjay Jhanwar.
Order
1. Issue notice to the respondents through registered AD post returnable within four weeks.
2. Additionally, the standing counsel nominated by respondents w

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M/s Dharampal Premchand Ltd Versus Commissioner Central Goods And Service Tax
Central Excise
2018 (8) TMI 552 – SC Order – TMI
SUPREME COURT OF INDIA – SC
Dated:- 6-8-2018
Special Leave Petition (Civil) Diary No(s). 9329/2018
Central Excise
Mr. Navin Sinha J. [In Chamber]
For the Petitioner(s) : Mr. A.P. Sinha, Adv. And Mr. Brajesh Kumar, AOR
For the Respondent(s) : None
ORDER
The learned counsel for the petitioner seeks permission to withdraw the special leave petition

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Seeks to exempt payment of tax under section 7(4) of the UT GST Act, 2017 till 30.09.2019
22/2018 Dated:- 6-8-2018 Union Territory GST (UTGST) Rate
GST
UTGST Rate
UTGST Rate
Government of India
Ministry of Finance
Department of Revenue
Central Board of Indirect Taxes and Customs
Notification No. 22/2018 -Union Territory Tax (Rate)
New Delhi, the 6th August, 2018
G.S.R. 745 (E).- In exercise of the powers conferred by sub-section (1) of section 8 of the Union Territory Goods and Services Tax Act, 2017 (14 of 2017), the Central Government, on being satisfied that it is necessary in the public interest so to do, on the recommendations of the Council, hereby makes the following amendment in the notification of the Governmen

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Seeks to exempt payment of tax under section 5(4) of the IGST Act, 2017 till 30.09.2019.
23/2018 Dated:- 6-8-2018 Integrated GST (IGST) Rate
GST
IGST Rate
IGST Rate
Government of India
Ministry of Finance
Department of Revenue
Central Board of Indirect Taxes and Customs
Notification No. 23/2018 – Integrated Tax (Rate)
New Delhi, the 6th August, 2018
G.S.R. 744 (E).- In exercise of the powers conferred by sub-section (1) of section 6 of the Integrated Goods and Services Tax Act, 2017 (13 of 2017), the Central Government, on being satisfied that it is necessary in the public interest so to do, on the recommendations of the Council, hereby makes the following amendment in the notification of the Government of India, in the

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Seeks to exempt payment of tax under section 9(4) of the CGST Act, 2017 till 30.09.2019.
22/2018 – Central Tax (Rate) Dated:- 6-8-2018 Central GST (CGST) Rate
GST
CGST Rate
CGST Rate
Government of India
Ministry of Finance
Department of Revenue
Central Board of Indirect Taxes and Customs
Notification No. 22/2018 – Central Tax (Rate)
New Delhi, the 6th August, 2018
G.S.R. 743 (E).- In exercise of the powers conferred by sub-section (1) of section 11 of the Central Goods and Services Tax Act, 2017 (12 of 2017), the Central Government, on being satisfied that it is necessary in the public interest so to do, on the recommendations of the Council, hereby makes the following further amendment in the notification of the Gove

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Seeks to lay down the special procedure for completing migration of taxpayers who received provisional IDs but could not complete the migration process
31/2018 Dated:- 6-8-2018 Central GST (CGST)
GST
CGST
CGST
Government of India
Ministry of Finance
Department of Revenue
Central Board of Indirect Taxes and Customs
Notification No. 31/2018 – Central Tax
New Delhi, the 6th August, 2018
G.S.R. 742 (E).- In exercise of the powers conferred by section 148 of the Central Goods and Services Tax Act, 2017 (12 of 2017), the Central Government, on the recommendations of the Council, hereby specifies the persons who did not file the complete FORM GST REG- 26 of the Central Goods and Services Tax Rules, 2017 but received only a Pro

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REG-26
Yes/No
5
Contact details of the taxpayer
5a
Email id
5b
Mobile
6
Reason for not migrating in the system
7
Jurisdiction of Officer who is sending the request
(ii) On receipt of an e-mail from the Goods and Services Tax Network (GSTN), such taxpayers should apply for registration by logging onto https://www.gst.gov.in/) in the “Services” tab and filling up the application in FORM GST REG-01 of the Central Goods and Services Tax Rules, 2017.
(iii) After due approval of the application by the proper officer, such taxpayers will receive an email from GSTN mentioning the Application Reference Number (ARN), a new GSTIN and a new access token.
(iv) Upon receipt, such taxpayers are required to furnish the following details to GS

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Body Building on Provided Chassis by Job Worker Classified as 'Composite Supply' Based on Goods or Services Component.
Case-Laws
GST
Classification of Supply – The activity of Body Building undertaken by the Applicant, carried out on the chasis supplied by the principal in the capacity of a job worker, would amount to ‘Composite Supply’ – to be classified as supply of goods or supply of services as per the predominant component involved.
TMI Updates – Highlights, quick notes, ma

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GST Law Classifies Works Contract for Pooling Sub-Station, Transmission Lines, and Feeder Bay as Composite Supply.
Case-Laws
GST
Works contract – Composite supply – pooling sub-station, Transmission Lines and Feeder Bay Work – work involves both supply of goods and supply of services, which are naturally bundled – all the three agreements shall have the same classification for the purpose of taxation under the GST Laws.
TMI Updates – Highlights, quick notes, marquee, annotation, new

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GST Council Meeting in New Delhi: Tax Rate Adjustments, Compliance Simplifications, and Revenue Collection Enhancements Announced.
News
GST
Hon. Minister Piyush Goyal briefing media about the

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Hon. Minister Piyush Goyal briefing media about the decisions taken in the GST Council Meet, at a press conference in New Delhi
GST
Dated:- 4-8-2018

d
News – Press release – PIB

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GST on Inter Branch Transaction
Query (Issue) Started By: – Sanjeev Sharma Dated:- 4-8-2018 Last Reply Date:- 6-8-2018 Goods and Services Tax – GST
Got 8 Replies
GST
A Delhi based Company is having a sales and marketing office in Mumbai. All goods ( which are exempted from GST) are sold to the customers directly from Delhi.
Mumbai office does not make any taxable supply and therefore not registered under GST.
Does Mumbai office is required to raise bill on Delhi Office for sales and marketing services provided and to charge GST.
Reply By YAGAY andSUN:
The Reply:
You may issue Bill of Supply in such transactions along with e-way bill.
Reply By Himansu Sekhar:
The Reply:
Mimbai office should take regn and receive the good

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plier is required to be registered in a state where he makes taxable supply of goods or services. Delhi office goods is exempt, but mumbai office service is taxable and thus aggregate turnover for taking registration shall also include value of exempt goods sold by Delhi office. Therefore mumbai office need to take registration as distinct person and charge igst to Delhi office. It will cover under s.no.2 of schedule II CGST Act, 2017.
Reply By KASTURI SETHI:
The Reply:
Well explained by Sh.Pawan Kumar, an expert.
Reply By Ganeshan Kalyani:
The Reply:
Mumbai office has to take registration. If it does not avail services that are covered under reverse charge notification then it can take ISD registration. By taking this registration mumb

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GST slabs may reduce to 3 in long-term: Sanjeev Sanyal
GST
Dated:- 4-8-2018

Kolkata, Aug 4 (PTI) In the long-term, Goods and Services Tax (GST) slabs may come down to three, in addition to the exempted category, Sanjeev Sanyal, Principal Economic Adviser to the Finance Ministry, today said.
The three slabs could be a low of 5 per cent, a central 15 per cent (merging 12 per cent and 18 per cent slabs that exist now) and a top rate of 25 per cent, he said here at an interactive session organised by the Bharat Chamber of Commerce.
"In the long-term, the GST rates might be squeezed to three as more and more simplification will be done," Sanyal said.
Presently, there are four GST slabs of 5, 12, 18 and 28 per cent, plu

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Restaurant services rationalized
By: – CA Akash Phophalia
Goods and Services Tax – GST
Dated:- 4-8-2018

Introduction
Supply of food or any other article for human consumption or any drink (other than alcoholic liquor for human consumption), where such supply is for cash, deferred payment or other valuable consideration has been classified as “supply of services” in entry 6(b) of Schedule II to the CGST Act 2017. The said service is further elaborated along with accommodation services in Notification No 11/2017-Central Tax (Rate) dated 28th June 2017 for proper classification and assignment of HSN/SAC codes to it. In the recent notification 13/2018-Central Tax (Rate) as issued on 26th July 2018 the said classification particularly in relation to restaurant services is redefined and this article aims to throw light on the impact of such change.
Amendment in the entry
Accommodation, food and beverage services are classified as serial no 7 to the Notification 11/2017 sup

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riff includes charges for all amenities provided in the unit of accommodation (given on rent for stay) like furniture, air conditioner, refrigerators or any other amenities, but without excluding any discount offered on the published charges for such unit.
Will there be any change in tax rate if the amount charged is less than declared tariff- Even if the amount charged actually is lesser than the declared tariff then also the said service shall fall in this classification only. To put it differently, even if the actual charges charged are lesser then the published charges, the declared tariff shall be equivalent to published charges.
How to calculate the limit of ₹ 7500/- The declared tariff needs to be seen for per room per day.
Can we consider the declared tariff on daily basis – The declared tariff for different days can be different and in that case the classification shall also be different for different days. If the declared tariff on one day is ₹ 7500/- then the

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ed tariff of the said special suite to an amount below ₹ 7500/-, the said services shall again be classified in the above stated amended entry.
Whether the checking of declared tariff is to be done assessee-wise -The above mentioned classification is applicable on premises. Thus if an institution is having accommodation facility in different premises and declared tariff in one premises is below ₹ 7500/- per room per day and the declared tariff in the second premises is ₹ 8000/- per room per day, then the said assessee has to classify services of different premises differently, that is to say, for the first premise the classification shall be as per the amended entry mentioned above and the second premises shall not be classified in the amended entry as mentioned above.
Condition attached
The important conditions attached to this entry is that the assessee engaged in providing services falling under this entry shall not be eligible to avail of the input tax credit o

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GST Charcha – Seizure Order of Goods: Appealable or Not?
By: – Bimal jain
Goods and Services Tax – GST
Dated:- 4-8-2018

GST Charcha – Seizure Order of Goods: Appealable or Not?
As seen recently after implementation of E-Way Bill, effectively from April 1, 2018, multiple cases of seizures of the goods/conveyances in transit by the department by way of Order passed under Section 129(1) of CGST Act, 2017 (“CGST Act”), has raised concerns as to whether the order of seizure of goods under Section 129(1) of CGST Act is appealable or not?
In this regard, various Writs have been filed before different High Courts across the Country and divergent views have been found with respect to the maintainability of the Writ petitions against the Order of seizure of goods.
This GST Charcha deciphers into relevant provisions of GST Law along with legal jurisprudence to determine whether the Order of seizure of goods by the Revenue is appealable or not under the provisions of the CGST Ac

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osecution under this Act; or
* an order passed under Section 80 (i.e. payment of tax and other amount in instalment)
Manifestly, while Section 107 of the CGST Act makes every decision or order passed under the GST Act to be appealable, whereas Section 121 ibid makes an exception thereto and states that certain orders, which are recognized in sub-sections (a) to (d) would not be appealable.
Allahabad High Court:
* M/s R K Overseas Vs. UOI & 3 Ors. Writ Tax No. 111 of 2018 (“R K Overseas case”) 2018 (2) TMI 1737 – ALLAHABAD HIGH COURT
A writ petition was filed by the assessee before the Hon'ble Allahabad High Court challenging seizure of goods. The Court held that a conjoint reading of both Sections 107 and 121(b) makes it imperative that the seizure of goods in transit or storage is specifically excluded from the purview of appeal and consequently non-appealable.
* Bharat Iron Store Vs. Union of India [ 2018 (4) TMI 1141 – ALLAHABAD HIGH COURT ]
The petitioner sought a writ of

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the assessee files an appeal within the next one week, the same shall be heard and decided in accordance with law by the Appellate Authority within a period of one month therefrom.
Calcutta High Court:
* Gati-Kintetsu Express (P.) Ltd. Vs. Assistant Commissioner of State Tax, Kharagpur [ 2018 (6) TMI 558 – CALCUTTA HIGH COURT ]
The case was whether the assessee had the locus standi to file a writ petition before the High Court against the Order of seizure of goods under Section 129(1) of CGST Act. The assessee relied on the judgment of the Allahabad High Court in R K Overseas case (supra) and pleaded that since the order of seizure has been classified as non-appealable under clause (b) of Section 121 of the Act, hence the need arose to file the writ petition before the High Court challenging the order of seizure of goods.
To this the Court explained that clause (b) of Section 121 is only confined to “seizure of or retention of books of accounts, register and other documents” and

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In Re: M/s. Monrovia Leasing and Finance Pvt. Ltd.
GST
2018 (10) TMI 1244 – AUTHORITY FOR ADVANCE RULING, MAHARASHTRA – 2018 (18) G. S. T. L. 489 (A. A. R. – GST)
AUTHORITY FOR ADVANCE RULING, MAHARASHTRA – AAR
Dated:- 4-8-2018
GST-ARA-20/2017-18/B-83
GST
SHRI B.V. BORHADE, AND SHRI PANKAJ KUMAR, MEMBER
PROCEEDINGS
Under section 98 of the Central Goods and Services Tax Act, 2017 and the Maharashtra Goods and Services Tax Act, 2017)
The present application has been filed under section 97 of the Central Goods and Services Tax Act, 2017 and the Maharashtra Goods and Services Tax Act, 2017 [hereinafter referred to as “the CGST Act and MGST Act”] by M/S Monrovia Leasing and Finance Pvt. Ltd., the applicant, seeking an advance ruling in respect of the following questions.
1. Whether the whole (Sheep/Goat) animal carcass in its natural shape in frozen state in different weight and size packed in LDPE bags without mentioning the weight and one or two such LDPE bags fu

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mean a reference to the same provision under the MGST Act. Further to the earlier, henceforth for the purposes of this Advance Ruling, a reference to such a similar provision under the CGST Act / MGST Act would be mentioned as being under the “GST Act”.
02. FACTS AND CONTENTION – AS PER THE APPLICANT-
1) M/S Monrovia Agro Foods is engaged in slaughtering & processing of Sheep / Goat meat and supplies these products to Army against tender.
2) Monrovia Agro Foods Supplies to Army Sheep / Goat meat in carcass form i.e. the whole animal carcass in its natural shape in frozen state. Naturally, the carcass would be in different weight & sizes. Further, there is no fixed quantity & size in which these carcasses are dispatched to Army. The said dispatches are made on the basis of the weight of the frozen carcass. Furthermore, the consideration is charged on the basis of weight. The packing and dispatch pattern is given below:-
Each frozen carcass is put in LDPE Bag (Primary Packing) whic

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meat respectively are provided below:
Schedule II
S.No.
Chapter/ Heading/ Sub-heading/ Tariff item
Description of Goods
4.
0204
Meat of sheep or goats, frozen and put up in unit containers
b. A reading of the above-mentioned entries in the above reproduced notification would reveal that if the items mentioned in Tariff Heading 0204 are put up in a 'unit container', it would be eligible to tax @ 12%.
c. Correspondingly, in exercise of the powers conferred by sub-section (1) of section 6 of the Integrated Goods and Service Tax Act, 2017, the Central Government via Notification No.2/2017-Integrated Tax (Rate) New Delhi dated 28.06.2017 has exempted inter-State supplies of goods from the whole of the integrated tax leviable thereon as under. Relevant extract is reproduced below;
Schedule
S.No.
Chapter/Heading/Sub-heading/Tariff item
Description of Goods
10.
0204
Meat of sheep or goats, [other than frozen and put up in unit containers]
A conjoint reading of the extracts o

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e any actionable claim or enforceable right in respect of such brand name has been foregone voluntarily], subject to conditions as in the ANNEXURE I]”;
b. Hence, net impact of the above amendment is as follows:-
i. Reduction in rate from 12% to 5% on the subject products.
ii. One additional condition for taxability is imposed i.e. product must be branded.
c. Correspondingly, in exercise of the powers conferred by sub-section (1) of section 6 of the Integrated Goods and Service Tax Act, 2017, the Central Government via Notification No.44/2017-Integrated Tax (Rate) New Delhi dated 14.11.2017 has exempted inter-State supplies of goods from the whole of the integrated tax leviable thereon as under. Relevant extract is reproduced below:
Schedule
S.No.
Chapter/Heading/Sub-heading / Tariff item Heading
Description of Goods
8.
0204
All goods, fresh or chilled
9.
0204
All goods (other than fresh or chilled) other than those put up in unit container and,-
(a) bearing a register

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half-carcasses of lamb, fresh or chilled
Nil
0204 22 00
– Other cuts with bone in
Nil
0204 23 00
– Boneless
Nil
0204 30 00
– Carcasses and half-carcasses of lamb, frozen – Other meat of sheep, frozen:
Nil
0204 41 00
– Carcasses and half-carcasses
Nil
0204 42 00
– Other cuts with bone in
Nil
0204 43 00
– Boneless
Nil
0204 50 00
– Meat of goats
Nil
1601 00 00
SAUSAGES AND SIMILAR PRODUCTS, OF MEAT, MEAT OFFAL OR BLOOD; FOOD PREPARATIONS BASED ON THESE PRODUCTS
6%
0104
LIVE SHEEP AND GOATS
 
0104 10
– Sheep:
 
0104 10 10
– Sheep including lamb for breeding purpose
 
0104 10 90
– 0104 10 90
 
0104 20 00
– Goats
 
(c) Details of benefit of notification of Central Excise if any availed – NA.
(6) (a) Classification of Service / Services as applicable
(b) Rate / Rates of Service Tax as applicable to services provided
Sr. No.
Classification of Services
Accounting Code
Rate of Tax
1.
Manpower Recruitment/ Suppl

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017 till 14th November, 2017
Schedule II of the Notification No 1/2017-lntegrated Tax (Rate) dated 28th June 2017 deals with the products which are subject to 12 % GST and entry No 4 which pertain to sheep/Goat meat respectively are provided below:
Schedule II
S.No.
Chapter/Heading/Sub-heading/ Tariff item
Description of Goods
4.
0204 
Meat of sheep or goats, frozen and put up in unit containers
3. A reading of the above-mentioned entry in the above reproduced notification would reveal that if the items mentioned in Tariff Heading 0204 are put up in a 'unit container', it would be eligible to tax @12%.
4. Correspondingly, in exercise of the powers conferred by sub-section (1) of section 6 of the Integrated Goods and Service Tax Act, 2017, the Central Government via (b) Notification No.2/2017-lntegrated Tax (Rate) New Delhi dated 28.06.2017 has exempted, inter-State supplies of goods, from the whole of the integrated tax leviable thereon. Relevant extract is reproduc

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Tariff Heading 0204 would be eligible to tax @ 5% if are put up in a 'unit container' and bear a brand name.
7. Correspondingly, in exercise of the powers conferred by sub-section (1) of section 6 of the Integrated Goods and Service Tax Act, 2017, the Central Government via Notification No.44/2017-Integrated Tax (Rate) New Delhi dated 14.11.2017 has exempted, inter-State supplies of goods, from the whole of the integrated tax leviable thereon. Relevant extract is reproduced below:
Schedule
S.No.
Chapter/Heading/Sub-heading/Tariff item
Description of Goods
8.
0204
All goods, fresh or chilled
9.
0204
All goods (other than fresh or chilled) other than those put up in unit container and,-
(a) bearing a registered brand name; or
(b) bearing a brand name on which actionable claim or enforceable right in court of law is available [other than those where any actionable Claim or enforceable right in respect of such brand name has been foregone voluntarily], subject to conditions

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Sheep/ Goat meat to Army against tender does not qualify to be as unit container.
In support of above point of view, following submissions are being made for the kind consideration of the Honorable Advance Ruling Authority.
11. Unit Container, meaning-
11.1 Before adverting to the decided case laws and analysis of the term 'unit container', it is important to advert to the meaning of the term 'unit'. Merriam Webster Dictionary defines 'unit' as 'a determinate quantity (as of length, time, heat, or value) adopted as a standard of measurement such as an amount of work used in education in calculating student credits or an amount of a biologically active agent (such as a drug or antigen) required to produce a specific result. The Business Dictionary defines the term to mean a definitive or determinate quantity adopted as a standard of measurement and exchange. Therefore, where the term 'unit' is affixed to a container, it would mean a container containing a 'unit' of a particular com

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nder the old Central Excise Tariff, prepared/ preserved food put up in 'unit container' and ordinarily intended for sale were eligible for excise duty. Thus, there was a twin requirement viz. goods being put up in 'unit container' and secondly, they should have ordinarily been intended for sale.
11.6 The expression 'unit container' was not defined in the old Central Excise Tariff but instructions in this regard were issued by Central Excise Board's letter M.F (D.R.I.) No. B/ 5/1/69-CX-I, dated 3-4-1969, clarifying the meaning of the term 'unit container' as under:
“Meaning of unit Containers. The expression 'unit container' used in Tariff Item 1B means a container in which prepared or preserved food is intended to be sold by the manufacturer. It may be a small container like tin, can, box, jar, bottle or bag in which the product is sold by retail, or it may be a large container like drum, barrel or canister in which the product is packed for sale to other manufacturers or dealers. In

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ned quantity of the contents. To pack half a litre of fruit syrup in a bottle which can hold one litre would not only be wasteful but would also subject the contents unnecessary movement, perhaps with a loss of quality. Further, it would arouse doubts in the customer that he is being cheated. It can therefore be very well understood that no intelligent manufacturer would pack prepared or preserved foods (or indeed any similar product of common consumer use) in a container which is not full or practically so. Nor would a prudent customer readily buy a product in a container which does not appear to be full.
46. The above observations on the methods of marketing of common consumer products, do not require any special knowledge because they are a matter of common experience. The tariff item and the Finance Ministry's instructions are consistent with the general experience and practice as mentioned above. General experience would certainly show that prepared and preserved foods and the li

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the term 'unit'.
11.9 Under the new Central Excise Tariff Act, 1985 (which replaces the old Tariff) also, certain products cleared and manufactured and put up in a 'unit container' were eligible to excise duty. The term 'unit container' under the New Central Excise Tariff Act, 1985 was defined to mean as under:
“Container whether large or small (for examples, tin, can, box, jar, bottle, bag or carton, drum, barrel, or canister) designed to hold a pre-determined quantity or number.”
11.10 In the context of new Central Excise Tariff Act, 1985, in the case of Agro Foods Punjab Ltd. v. Collector of Central Excise, 1990 (49) E.LT. 404 = 1990 (3) TMI 194 – CEGAT, NEW DELHI, the tribunal observed as below:
“We hold that there is no difference either in the entry in between 1B of the old Tariff and new tariff 2001.10 or in the issue involved in both the cases. Following the ratio of the decision in the case of M/s. HPMC we hold that clearance in barrels does not amount to sale of the con

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nit container' or not so long as the said container contained a predetermined quantity.
11.14 In the context of HDPE and LDPE Bags, in the case of Surya Agro Oils Ltd. v. Commissioner of Central Excise, Indore, 2000 (116) E.L.T. 514 = 1999 (11) TMI 264 – CEGAT, NEW DELHI, the question arose whether an HDPE sack weighing 20 kg each of Pasta was a 'unit container' or not. It is pertinent to note that the HDPE sack weighing 20kgs comprised of 2 LDPE bags weighing each and after putting the said LDPE bags in the HDPE sack, the HDPE sack was stitched and subsequently it was cleared as an HDPE. The tribunal opined as under.
* There exists no logic to restrict the scope of the words 'unit container' only to small containers which must have predetermined capacity of 1/2/3/4/ kg., and carry full particulars of the product i.e., date of the manufacture, name of the manufacturer, trademark price, etc. If the intention of the legislature was to refer only to the small containers having predeter

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xample, tin, Can, box, jar, bottle, bag, or carton, drum, barrel, or canister) designed to hold a Predetermined quantity or number, which is indicated on such package.”
12. In view whereof the judicial principles evolved for determination of 'unit container' would hold good in the context of GST law as well. We are therefore summarizing the said principles as under: In order for a container to be categorized as a 'unit container' , the said container should be designed to hold a predetermined quantity and should be standardized i.e. it is standardized for a particular commodity like packages of 1kg, 100 ml, 200ml, etc.
(i) The words 'unit container' does not mean only small containers which must have predetermined capacity of 1/2/3/4/ kg., and carry full particulars of the product i.e., date of the manufacture, name of the manufacturer, trademark, price, etc. A big container designed to hold a pre-determined quantity of goods in bulk will also qualify as 'unit contained.
(ii) That

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her a container is a 'unit container' or not, we are of the view that the fact that the LDPE bags are not sealed would militate against any contention raised by the department that the said container are designed to hold a pre-determined quantity.
(ii) That in Surya Agro Oils Ltd. v. Commissioner of Central Excise, Indore, 2000 (116) E.LT. 514 = 1999 (11) TMI 264 – CEGAT, NEW DELHI, case wherein HDPE sack weighing 20 kg each of Pasta comprising of 2 LDPE bags weighing 10 kgs each was held to be a unit container will not be applicable to the present case in as much as in the said case the HDPE bag contained LDPE bags of 10Kgs each, which were standardized whereas in the present case there is no fixed quantity of mutton in the LDPE bags, it can weigh 7 kg or 6.5kg i.e. the said HDPE bags cannot be said to be holding a predetermined uniform quantity. In a nutshell, the bags in the present case do not hold a pre-determined quantity of meat. It is clear from the above factual matrix that

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view that the product supplied by Monrovia Agro Foods shall not qualify as unit container.
15. Applicant submitting the two advance ruling by Hon. ARA Of Haryana State which is in support of our stand and interpretation that the product We are supplying should not qualify as packed in unit container, should not be subject to tax.
15. Applicant's point of view on specific queries raised for Advance Ruling:-
i. Whether the packaging being used for despatch to Army shall qualify as “Unit Container” under the GST law?
Point of view:-ln light of the discussion contained in Para 11.1 to Para 11.12, we are of the view that despatches made by the supplier in LDPE/ H DPE bags i.e. both primary as well as secondary packing do not qualify as product packed in unit container.
ii. Whether the product, i.e. sheep/Goat meat in frozen State and packed as mentioned in the facts stated above sheet shall be liable to be taxed under GST or would it be treated as exempted?
Point of view: -In lig

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xample, tin, can, box, jar, bottle, bag, or carton, drum, barrel, or canister) designed to hold a predetermined quantity or number, which is indicated on such package.
Thus it can be seen that the above referred Notifications has clearly brought out what a “unit container” means. If the submission made by the tax payer is taken on face value that they are engaged in supply of whole (Sheep/Goat) animal carcass in its natural shape in frozen state in different weight and size packed in LDPE bags without mentioning the weight and one or two such LDPE bags further packed in HDPE bags without mentioning the weight, the goods supplied by the tax payer cannot be construed as a product put up in “unit container” as the package i.e. LOPE bags and HDPE bags even though be designed to hold a pre-determined quantity/weight, the same is not indicated on such packages nor the same are numbered. Further on being asked to clarify the weighment procedure adopted by the taxpayer, the taxpayer has subm

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28th June 2017 up to 14th November 2017 and thereafter as per entry no. 1 of schedule I of the Notification No. 43/2017-lntegrated Tax (Rate) dated 14th November 2017 or fall under exemption list as per entry no 10 of Notification No. 2/2017-lntegrated Tax (Rate) New Delhi dated 28th June 2017 up to 14th November 2017 and thereafter as per entry no. 9 of the Notification No. 44/ 2017-lntegrated Tax (Rate) dated 14th November 2017.
Comments: As per the submissions made by the tax payer it appears that they are supplying Sheep, Goat Meat in carcass form i.e. the whole animal in its natural shape in frozen state of different weights. The said products are packed in LDPE bags and then one or two LDPE bags are packed in one HDPE bag. As the packages differ in weight and quantity, no weight is mentioned on the LDPE or HDPE bags and invoicing is done on the entire weight of the lot. It appears that the product involved i.e. Frozen Sheep/Goat Meat is duly covered under HS Code 02043000 and Ch

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pter/Heading/Sub-heading/Tariff item
Description of Goods
10
0204
Meat of sheep or goats, fresh, chilled or frozen [other than frozen and put up in unit container]
Similarly from 15.11.2017 the said product appears to fall under Entry No: 9 of Notification No: 44/2017-Integrated Tax (Rate) dated 14.11.2017 as the product is not put in unit containers and not bears a registered brand name.
As per the Oral directions issued by the Hon'ble Advance Ruling Authority during the course of hearing held on to verify and report whether the applicant M/S Monrovia Leasing Finance Pvt. Ltd was using any brand name on the goods on which the Advance Ruling is sought for, this office had deputed the Jurisdictional Range Superintendent Shri Rajesh Surendran, to physically verify the goods and report. Based on the verification report of the deputed officer, the following submission is placed before the Hon'ble Authority for the perusal.
a) The whole (Sheep/Goat) animal carcass in its natural sha

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was also noticed that the Tax payer is also involved in the manufacture of Ready to cook Chicken products, Tray Pack Frozen Pre Cut Chicken Products and Ready to eat Canned Meat Products. The said goods are marketed and sold under a Brand “Punjab Maratha” in retail packs on which the tax payer is paying appropriate GST. The brochure, the packing and the stickers used for the packing are enclosed for ready reference.
04. HEARING
The case was taken up for preliminary hearing on DT. 27.06.2018, with respect to admission or rejection of the application when Sh. Ashok kumar Mishra, Advocate along with Sh. Surender Singh, Director appeared and made contentions as per details in their ARA. The jurisdictional officer, Sh. Rajesh Surendran, Suptt. Division- Baramati Pune – II Central GST Commissionerate appeared and made written submissions.
The application was admitted and final Hearing was held on 24.07.2018, Sh. Ashok kumar Mishra, Advocate along with Sh. Surender Singh, Director appear

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whole animal carcass in frozen state. Applicant further submit that the carcass would be in different weight and sizes and there is no fix quantity and size in which these carcasses are dispatched to the Army. The said dispatches are made on the basis of weight of frozen carcass. Furthermore the consideration is charged on the basis of weight. As regard packaging and dispatch pattern it is submitted that each frozen carcass is put in LDPE Bag (Primary Packing) which is not sealed & no weight is mentioned on such LDPE Bag. Thereafter, generally one or two of such LDPE Bags are put in HDPE Bag (Secondary Packing) and no weight is mentioned on such HDPE Bag too. Hence, the invoicing is done for entire weight of the lot and no mention of weight of each bag of the lot.
The notification no.1/2017 and 2/2017 – Integrated Tax (Rate) both dated 28th June 2017and further amended by notification no 43/2017 and 44/2017- Integrated Tax (Rate) both dated 14th November, 2017 are the central point of

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packed in LDPE bags without mentioning the weight and one or two such bags further packed in HDPE bags being supplied to Army against tender shall qualify as product put up in 'unit container'. It was further held that impugned product will be covered by schedule entry 4 of the notification of 1/2017 – Integrated Tax (Rate) during the period 01/07/2017 to 13/11/2017 and schedule I of the said notification for the period from 14th November, 2017 onwards.
Accordingly they were requested to state, similarities or as the case may be dissimilarities between the facts of this ruling and the present ARA application. Applicant has given comparative analysis of facts which are not denied by the jurisdictional officer.
Comparative analysis of facts between M/S. Ahmednagar District Goat Rearing and Processing Co-operative Federation Ltd. and the applicant are as below:
Facts
Ahmednagar Goat Federation
Monrovia Agro Foods
Product and HSN Code
Frozen Goat/ Sheep-0204
Frozen Goat/ Sheep-020

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is no mentioning of brand name also.
Requirement of Army for mentioning of weight/number
During the intervening period (i.e. 2017-18) packing conditions mentioned in Terms and Conditions (i.e. RFP) given by Army required mentioning of actual weight on the Secondary packing.
In the current tender against which supplies are being made presently (From April 2018) there is no requirement from Army side regarding mentioning of weight/ number on any packing material.
It would be important to mention here that a specific letter received from Army that there is no requirement of mentioning the weight/ number of carcass packed already provided while filing written submission.
Billing Pattern
A list showing bag wise weight against each bill was being provided to Army as attachment with each invoices.
There is no such list is either made or provided to Army the total weight is mentioned on the invoice and it is not even possible to figure it out the total number of bags in respective truck

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rom 01/07/ 2017 till present and going forward whereas in case of appellant it is from 01/04/2018 till present and going forward. The product supplied in both the case is same i.e. frozen goats and sheep carcass. However in respect of packaging of the product supplied which is a crucial aspect with respect to tax liability being there or not, we find that there is a part difference. In case of applicant there is no printing or marking of weight or number of carcass packed in such bags and there is no mentioning of brand name. Further as per the tender pursuant to which impugned supplies are to take place there is no requirement from Army regarding mentioning weight or number on the packaging material. Whereas in case of M/S. Ahmednagar District Goat Rearing and Processing Co-operative Federation Ltd packaging conditions mentioned in Terms and Conditions “RFP”given by Army required mentioning of actual weight on the secondary packaging. In this regard the applicant in the present case h

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t container' has to satisfy follow conditions simultaneously-
1. Package may be large or small
2. Packaging designed to hold predetermined quantity or number
3. Such predetermined quantity or number is indicated on such package.
From the facts submitted by the applicant and as verified by the jurisdictional officer during his factory visit, we find that each package is containing different weight and no weight/number is mentioned on packages. In view of above we are convinced that impugned supply would not satisfy the requirement of the definition of 'unit container 'as found in both the notifications sited supra. In view of this, we hold that the supply of whole sheep/ goat carcass in frozen state packed in LDPE bag and further packed in HDPE bag which do not indicate any information related to weight /number of the carcass packed in such bags would tantamount to being as a product not put up in a unit container for the purpose of notification 1/2017and 2/2017- Integrated Tax (Rat

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p in unit containers
1-2017 TO 13-11-2017
12%
Deleted w.e.f 14.11.2017
 
1 (Schedule I)
0202, 0203, 0204, 0205, 0206, 0207, 0208, 0209, 0210
All goods [other than fresh or chilled], and put up in unit container and, –
(a) bearing a registered brand name; or
(b) bearing a brand name on which an actionable claim or enforceable right in a court of law is available (other than those where any actionable claim or enforceable right in respect of such brand name has been foregone voluntarily], subject to the conditions as in the ANNEXURE]    
14-11-2017 Onwards
5%
Notification no. 2/2017 Integrated Tax (Rate) dated 28th June 2017
10
0204
Meat of' sheep or goats, fresh, chilled or frozen [other than frozen and put up in unit container]
1-7-2017 TO 13-11-2017
NIL
Deleted w.e.f 14.11.2017
 
9
0202, 0203,
0204, 0205,
0206, 0207,
0208, 0209,
0210
All goods [other than fresh or chilled], and put up in unit container and, –
(a) bearing a r

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ed supply is covered by notification 2/2017 – Integrated Tax (Rate) dated 28th June, 2017 as amended by serial 9 Of the notification no. 44/2017 – Integrated Tax (Rate) dated 14th November, 2017 and would be exempt from whole of GST as per this Notification.
06. In view of the deliberations as held hereinabove, we pass the order as follows:
ORDER
(Under clause (xviii) Of section 20 Of the Integrated Goods and Services Tax Act, 2017 read with section 98 of the Central Goods and Services Tax Act, 2017 and the Maharashtra Goods and Services Tax Act, 2017)
 
NO.GST-ARA-20/2017-18/B-83
Mumbai, dt. 04/08/2018
For reasons as discussed in the body of the order, the questions are answered thus –
Q.1 Whether the whole (Sheep/Goat) animal carcass in its natural shape in frozen state in different weight and size packed in LDPE bags without mentioning the weight and one or two such LDPE bags further packed in HDPE bags being supplied to Army by applicant against tender shall qualify a

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Exemption/ concession provided for Mandap Keepers/Function Halls letting out the premises on free of cost
Query (Issue) Started By: – Ravikumar Doddi Dated:- 3-8-2018 Last Reply Date:- 5-8-2018 Goods and Services Tax – GST
Got 5 Replies
GST
Dear sir,
Applicant is mandap keeper/ function halls generally they will charge GST on regular basis but some times they will let out free of cost for the religious and social functions is there any exemption of GST on free let out or any concession in GST given to them.kindly support with appropriate section in CGST Act or circular, they are not registered under Section 12AA of Income tax Act (Charitable Institution.
Reply By Ganeshan Kalyani:
The Reply:
GST is applicable on the value of

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Goods & Services Tax collections
GST
Dated:- 3-8-2018

The Government maintains month-wise data of Goods & Services Tax collection. The details of collections from July, 2017 to June 2018 are at Annexure.
The accounting of GST collections in the Central Government is done on the cash basis. Accordingly, the accounting with regard to CGST, IGST and Compensation Cess is done upon the happening of actual event of collections, refunds and settlements. The details are at Annexure.
The Government maintains the data of IGST collected and apportioned. The month-wise details are at Annexure.
Apart from the regular monthly IGST settlement, the Government has done provisional settlement of un-apportioned IGST lying with the Centre of a

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23836
42694
48
24027
18619
7103
7103
49557
December
13928
86
10348
24190
42765
805
24835
17125
7922
23
7898
49213
January
14874
287
8583
23170
45338
2247
23651
19441
8070
21
8049
50660
February
14763
511
28827
43079
42382
2325
59806
-19749
8196
23
8172
31502
March
16266
1015
12140
27390
46326
7294
25564
13468
7520
42
7478
48336
Total
118876
1899
86275
203253
387356
12794
205938
168623
62614
109
62505
434381
GST Collection (FY 2018-19)
CGST
IGST
Comp. Cess
Total Net
Month
Gross
Refund
Settlement
Net
Gross
Refund
Settlement
Net
Gross
Refund
Net
(+)
(-)
April
18653
392
13841
32102
50548
1852
28395
20301
8554
16
8538
6094

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Amendments to the Goods and Services Tax (GST) Laws
GST
Dated:- 3-8-2018

The Government has proposed around 46 Amendments to the Goods and Services Tax (GST) laws viz., the Central Goods and Services Tax Act, 2017 along with the respective State Goods and Services Tax Act, 2017, Integrated Goods and Services Tax Act, 2017, Union Territory Goods and Services Tax Act, 2017 and GST (Compensation of States) Act, 2017. The details are placed on the Government's website www.mygov.in at t

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E-way Bill System
GST
Dated:- 3-8-2018

The E-way Bill System has been introduced nation-wide for inter-State movement of goods with effect from 1st April, 2018 while the States were given the option to choose any date till 3rd June, 2018 for the introduction of the E-way bill system for intra-State supplies. Consequently, all the States have notified the E-way bill system for intra-State supplies, the last being the National Capital Territory of Delhi which introduced it with effect from 16th June, 2018. The objectives of E-way bill system are as below:
a. single and unified E-way bill for inter-State and intra-State movement of goods for the whole country in self-service mode,
b. enabling paperless and fully online system t

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ion on 1st February, 2018. A total of 4.5 lakhs E-way bills could be generated that day.
The Union Government deferred the introduction of the E-way Bill System till 1st April, 2018. Further, the Government took various corrective steps in this regard viz., new Information Technology (IT) infrastructure including high end servers were installed to handle the increased load on the system. The upgraded system is capable of handling a peak load of 75 lakh E-way bills per day. As a result, the E-way bill system is now being successfully implemented since 1st April, 2018 across the country. As on 30th July, 2018, a total of 7,58,75,207 E-way bills for intra-State movement and 7,81,51,096 E-way bills for Inter-State movement of goods have been g

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Revenue from the Goods and Services Tax (GST) touched 7.19 lakh crore between August, 2017 and March, 2018
GST
Dated:- 3-8-2018

The revenue from the Goods and Services Tax (GST) touched ₹ 7.19 lakh crore between August, 2017 and March, 2018. The Monthly Revenue Average from GST was at ₹ 89,885 crore for the said period.
The details of month-wise Goods & Services tax collection are as follows:
Table
Figures in Rs Crores
MONTH
Total collection
Aug-17
95,633

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GST – Concept & Status as on 1st August, 2018
GST
Dated:- 3-8-2018

GOODS AND SERVICE TAX (GST)
CONCEPT & STATUS
CENTRAL BOARD OF INDIRECT TAXES AND CUSTOMS (CBIC)
DEPARTMENT OF REVENUE
MINISTRY OF FINANCE
GOVERNMENT OF INDIA
AS ON 1st AUGUST, 2018
 The uniform system of taxation, which, with a few exceptions of no great consequence, takes place in all the different parts of the United Kingdom of Great Britain, leaves the interior commerce of the country, the inland and coasting trade, almost entirely free. The inland trade is almost perfectly free, and the greater part of goods may be carried from one end of the kingdom to the other, without requiring any permit or let-pass, without being subject to question, visit, or examination from the revenue officers. ……This freedom of interior commerce, the effect of uniformity of the system of taxation, is perhaps one of the principal causes of the prosperity of Great Britain; every great country being necessarily

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T TAXATION IN INDIA BEFORE GST :
2.1 Article 265 of the Constitution of India provides that no tax shall be levied or collected except by authority of law. As per Article 246 of the Constitution, Parliament has exclusive powers to make laws in respect of matters given in Union List (List I of the Seventh Schedule) and State Government has the exclusive jurisdiction to legislate on the matters containing in State List (List II of the Seventh Schedule). In respect of the matters contained in Concurrent List (List III of the Seventh Schedule), both the Central Government and State Governments have concurrent powers to legislate. 
2.2 Before advent of GST, the most important sources of indirect tax revenue for the Union were customs duty (entry 83 of Union List), central excise duty (entry 84 of Union List), and service tax (entry 97 of Union List). Although entry 92C was inserted in the Union List of the Seventh Schedule of the Constitution by the Constitution (Eighty-eighth Amend

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ame was levied by the Union.
HISTORICAL EVOLUTION OF INDIRECT TAXATION IN POSTINDEPENDENCE INDIA TILL GST:
3.1 In post-Independence period, central excise duty was levied on a few commodities which were in the nature of raw materials and intermediate inputs, and consumer goods were outside the net by and large. The first set of reform was suggested by the Taxation Enquiry Commission (1953-54) under the chairmanship of Dr. John Matthai. The Commission recommended that sales tax should be used specifically by the States as a source of revenue with Union governments' intervention allowed generally only in case of inter-State sales. It also recommended levy of a tax on inter-State sales subject to a ceiling of 1%, which the States would administer and also retain the revenue. 
3.2 The power to levy tax on sale and purchase of goods in the course of interState trade and commerce was assigned to the Union by the Constitution (Sixth Amendment) Act, 1956. By mid-1970s, central exc

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VAT was achieved by 1996-97. 
3.4 The next wave of reform in indirect tax sphere came with the New Economic Policy of 1991. The Tax Reforms Committee under the chairmanship of Prof. Raja J Chelliah was appointed in 1991. This Committee recommended broadening of the tax base by taxing services and pruning exemptions, consolidation and lowering of rates, extension of MODVAT on all inputs including capital goods. It suggested that reform of tax structure must have to be accompanied by a reform of tax administration, if complete benefits were to be derived from the tax reforms. Many of the recommendations of the Chelliah Committee were implemented. In 1999-2000, tax rates were merged in three rates, with additional rates on a few luxury goods. In 2000-01, three rates were merged into one rate called Central Value Added Tax (CENVAT). A few commodities were subjected to special excise duty. 
3.5 Taxation of services by the Union was introduced in 1994 bringing in its ambit only t

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erent rates of sales tax on different commodities in different States. Rates of sales tax were more than ten in some States and these varied for the same commodity in different States. Inter-state sales were subjected to levy of Central Sales Tax. As this tax was appropriated by the exporting State credit was not allowed by the dealer in the importing State. This resulted into exportation of tax from richer to poorer states and also cascading of taxes. Interestingly, States had power of taxation over services from the very beginning. States levied tax on advertisements, luxuries, entertainments, amusements, betting and gambling. 
3.7 A report, titled “Reform of Domestic Trade Taxes in India”, on reforming indirect taxes, especially State sales tax, by National Institute of Public Finance and Policy under the leadership of Dr. Amaresh Bagchi, was prepared in 1994. This Report prepared the ground for implementation of VAT in States. Some of the key recommendations were; replacing s

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gn of VAT which was later made the Empowered Committee of State Finance Ministers (EC). Haryana was the first State to implement VAT, in 2003. In 2005, VAT was implemented in most of the states. Uttar Pradesh was the last State to implement VAT, from 1st January, 2008.
INTERNATIONAL PERSPECTIVES ON GST / VAT:
4.1 VAT and GST are used inter-changeably as the latter denotes comprehensiveness of VAT by coverage of goods and services. France was the first country to implement VAT, in 1954. Presently, more than 160 countries have implemented GST / VAT in some form or the other. The most popular form of VAT is where taxes paid on inputs are allowed to be adjusted in the liability at the output. The VAT or GST regime in practice varies from one country to another in terms of its technical aspects like 'definition of supply', 'extent of coverage of goods and services', 'treatment of exemptions and zero rating' etc. However, at a broader level, it has one common principle, it is a destinatio

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ith unique model of taxation in which certain provinces have joined federal GST and others have not. Provinces which administer their taxes separately are called 'non- participating provinces', whereas provinces which have teamed up with the Federal Government for tax administration are called 'participating provinces'. 
4.3   The rate of GST varies across countries. While Malaysia has a lower rate of  6% (Malaysia though scrapped GST in 2018 due to popular uproar against it),  Hungary has one of the highest rate of 27%. Australia levies GST at the rate of  10% whereas Canada has multiple rate slabs. The average rate of VAT across the EU is around 19.5%. 
NEED FOR GST IN INDIA:
5.1 The introduction of CENVAT removed to a great extent cascading burden by expanding the coverage of credit for all inputs, including capital goods. CENVAT scheme later also allowed credit of services and the basket of inputs, capital goods and input services could be use

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T was another source of distortion in terms of its cascading nature. It was also against one of the basic principles of consumption taxes that tax should accrue to the jurisdiction where consumption takes place. Despite remarkable harmonization in VAT regimes under the auspices of the EC, the national market was fragmented with too many obstacles in free movement of goods necessitated by procedural requirement under VAT and CST. 
5.4   In the constitutional scheme, taxation powers on goods was with Central Government but it was limited upto the stage of manufacture and production while States have powers to tax sale and purchase of goods. Centre had powers to tax services and States also had powers to tax certain services specified in clause (29A) of Article 366 of the Constitution. This sort of division of taxing powers created a grey zone which led to legal disputes. Determination of what constitutes a goods or service is difficult because in modern complex system of

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es with complete set off in all stages of making of a product. 
6.2   An announcement was made by the then Union Finance Minister in Budget (2007-08) to the effect that GST would be introduced with effect from April 1, 2010 and that the EC, on his request, would work with the Central Government to prepare a road map for introduction of GST in India.  After this announcement, the EC decided to set up a Joint Working Group in May 10, 2007, with the then Adviser to the Union Finance Minister and Member-Secretary of the Empowered Committee as its Co-conveners and four Joint Secretaries of the Department of Revenue of Union Finance Ministry and all Finance Secretaries of the States as its members. This Joint Working Group got itself divided into three Sub-Groups and had several rounds of internal discussions as well as interaction with experts and representatives of Chambers of Commerce & Industry. On the basis of these discussions and interaction, the Sub-Groups submit

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of Trade Taxes of the States would be set up to consider these comments, and submit their views. These views were submitted and were accepted in principle by the EC (January 21, 2009). Based on discussions within the EC and between the EC and the Central Government, the EC released its First Discussion Paper (FDP) on GST in November, 2009. This spelled out the features of the proposed GST and has formed the basis for discussion between the Centre and the States.
CHALLENGES IN DESIGNING GST:
7.1 In the discussion that preceded amendment in the Constitution for GST, there were a number of thorny issues that required resolution and agreement between Central Government and State Governments. Implementing a tax reform as vast as GST in a diverse country like India required the reconciliation of interests of various States with that of the Centre. Some of the challenging issues, addressed in the run up to GST, were the following:
7.2 Origin-based versus Destination-based taxation: GST i

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their jurisdiction would not contribute to the tax revenues of the exporting state. This view was missing the fact that any value addition in a jurisdiction necessarily means extra income in the hands of the residents of that jurisdiction. Spending of this income on consumer goods expands the sales tax base of the producing states and thereby contributes to their revenues. In fact, to the extent that consumer expenditures are dependent on the level of income of the residents of a State, it is the producing States that stand to gain the most in additional sales tax revenues (even under the destination basis of consumption taxes) from increased export output. 
7.3 Rate Structure and Compensation: There was uncertainty about gains in revenue after implementation of GST. Though attempts were made to estimate a revenue neutral rate, nonetheless it remains an estimate only. It was difficult to estimate accurately as to how much the States will gain from tax on services and how much th

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d). The lower rates (to be applied to certain goods consumed by the poor) should be 12%.  Further, the sin or demerit rates (to be applied on luxury cars, aerated beverages, pan masala, and tobacco) should be 40%. 
7.4 Dispute Settlement: A harmonized system of taxation necessarily required that all stakeholders stick to the decisions taken by the supreme body, which was later constituted as the Goods and Services Tax Council (the Council). However, the possibility of departure from the recommendations of such body cannot be completely ruled out. Any departure would definitely affect other stakeholders and in such circumstances there must be a statutory body to which affected parties may approach for dispute resolution. The nature of such dispute resolution body was a bone of contention. Under the Constitution (One Hundred Fifteenth Amendment) Bill, 2011, a Goods and Services Tax Dispute Settlement Authority was to be constituted for this purpose. This body was judicial in n

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122nd Amendment Bill, only alcoholic liquor for human consumption was kept outside GST and above mentioned five petroleum products were proposed to be brought under GST from a date to be recommended by the Council. The Central Government has also retained its power to tax tobacco and tobacco products, though these are also under GST. Thus, to ensure smooth transition and provide fiscal buffer to States, it was agreed to keep alcohol completely out of the ambit of GST.
CONSTITUTIONAL AMENDMENT:
8.1 As explained above, unification of Central VAT and State VAT was possible in form of a dual levy under the constitutional scheme. Power of taxation is assigned to either Union or States subject-wise under Schedule VII of the Constitution. While the Centre is empowered to tax goods upto the production or manufacturing stage, the States have the power to tax goods at distribution stage. The Union can tax services using residuary powers but States could not. Under a unified Goods and Services

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2014 was introduced in the 16th  Lok Sabha on 19th December, 2014. The Constitution Amendment Bill was passed by the Lok Sabha in May, 2015. The Bill was referred to the Select Committee of Rajya Sabha on 12th May, 2015. The Select Committee submitted its Report on the Bill on 22nd July, 2015. The Bill with certain amendments was finally passed in the Rajya Sabha and thereafter by Lok Sabha in August, 2016. Further the bill was ratified by required number of States and received assent of the President on 8th September, 2016 and has since been enacted as Constitution (101st Amendment) Act, 2016 w.e.f. 16th September, 2016. 
8.4 The important changes introduced in the Constitution by the 101st Amendment Act are the following:
* Insertion of new article 246A which makes enabling provisions for the Union and States with respect to the GST legislation. It further specifies that Parliament has exclusive power to make laws with respect to GST on inter-State supplies.
* Article

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cts power of the Parliament to levy surcharge under GST. In effect, surcharge cannot be imposed on goods and services which are subject to tax under Article 246A.
* Article 279A has been inserted to provide for the constitution and mandate of GST Council.
* Article 366 has been amended to exclude alcoholic liquor for human consumption from the ambit of GST, and services have been defined.
* Article 368 has been amended to provide for a special procedure which requires the ratification of the Bill by the legislatures of not less than one half of the States in addition to the method of voting provided for amendment of the Constitution. Thus, any modification in GST Council shall also require the ratification by the legislatures of one half of the States.
* Entries in List I and List II have been either substituted or omitted to restrict power to tax goods or services specified in these Lists or to take away powers to tax goods and services which have been subsumed in GST.
* Par

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local bodies which may be subsumed under GST;
* the goods and services that may be subjected to or exempted from the GST;
* model GST laws, principles of levy, apportionment of IGST and the principles that govern the place of supply;
* the threshold limit of turnover below which the goods and services may be exempted from GST;
* the rates including floor rates with bands of GST;
* any special rate or rates for a specified period to raise additional resources during any natural calamity or disaster;
* special provision with respect to the North- East States, J&K, Himachal Pradesh and Uttarakhand; and
* any other matter relating to the GST, as the Council may decide.
9.2 The Council shall recommend the date on which the goods and services tax be levied on petroleum crude, high speed diesel, motor spirit (commonly known as petrol), natural gas and aviation turbine fuel. While discharging the functions conferred by this article, the Goods and Services Tax Council shall be gu

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atter. The following major recommendations have been made by the Council:
(i)  The threshold exemption limit would be Rs. 20 lakh. For special category States (except J&K) enumerated in article 279A of the Constitution, threshold exemption limit has been fixed at Rs. 10 lakh.
(ii)  Composition threshold shall be Rs. 1 crore. As decided in the 23rd meeting of the Council, this limit shall be raised to Rs. 1.5 crore after necessary amendments in the Act. Composition scheme shall not be available to interState suppliers, service providers (except restaurant service) and specified category of manufacturers. For special category States (except J&K and Uttarakhand) enumerated in article 279A of the Constitution, threshold exemption limit has been fixed at Rs. 75 lakh.
(iii)  Existing tax incentive schemes of Central or State governments may be continued by respective government by way of reimbursement through budgetary route. The schemes, in the present form, would not cont

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; Eighteen rules on composition, registration, input tax credit, invoice, determination of value of supply, accounts and records, returns, payment, refund, assessment and audit, advance ruling, appeals and revision, transitional provisions, anti-profiteering, E-way Bill, inspection, search and seizure, demands and recovery and offences and penalties have been recommended.
(x)  The following classes of taxpayers shall be exempted from obtaining registration:
o  Suppliers of services, having turnover upto Rs. 20 lakhs, making inter State supplies; 
o  Suppliers of services, having turnover upto Rs. 20 lakhs, making supplies through e-commerce platforms.
(xi)  The reverse charge mechanism under sub-section (4) of section 9 of the  CGST Act, 2017 and under sub-section (4) of section 5 of the IGST Act, 2017 has been suspended till 30.09.2019.
(xii)  There shall be no requirement on payment of tax on advance received for supply of goods by all taxpay

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2017 onwards, the amount of late fee for late filing of GSTR-3B payable by a registered person is as follows:
o  whose tax liability for that month was 'NIL' will be Rs. 20/- per day instead of Rs. 200/- per day;
o  whose tax liability for that month was not 'NIL' will be Rs. 50/- per day instead of Rs. 200/- per day.
(xxi)  Facility has been introduced for manual filing of refund application.
(xxii)  Supply of services to Nepal and Bhutan shall be exempted from GST even if payment has not been received in foreign convertible currency – such suppliers shall be eligible for input tax credit.
(xxiii)  Centralized UIN shall be issued to every Foreign Diplomatic Mission / UN Organization by the Central Government.
(xxiv)  Rate of interest on delayed payments and delayed refund has been recommended.
(xxv)  Migration window would be opened once more time till 31.08.2018.
9.5 In its 28th meeting held in New Delhi on 21.07.2018, the GST Council rec

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nbsp; Meghalaya,   Sikkim   and  Uttarakhand to be increased to Rs. 20 Lakhs from Rs. 10 Lakhs.
(v)  Taxpayers may opt for multiple registrations within a State/Union territory in respect of multiple places of business located within the same State/Union territory.
(vi)  Mandatory registration is required for only those e-commerce operators who are required to collect tax at source.
(vii)  Registration to remain temporarily suspended while cancellation of registration is under process, so that the taxpayer is relieved of continued compliance under the law.
(viii)  The following transactions to be treated as no supply (no tax payable) under Schedule III: 
(a)  Supply of goods from a place in the non-taxable territory to another place in the non-taxable territory without such goods entering into India;
(b)  Supply of warehoused goods to any person before clearance for home consumption; and
(c)  Supply of goods in

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ssioner to be empowered to extend the time limit for return of inputs and capital sent on job work, upto a period of one year and two years, respectively.
(xiii)  Supply of services to qualify as exports, even if payment is received in Indian Rupees, where permitted by the RBI.
(xiv)  Place of supply in case of job work of any treatment or process done on goods temporarily imported into India and then exported without putting them to any other use in India, to be outside India.
(xv)  Recovery can be made from distinct persons, even if present in different State/Union territories.
(xvi)  The order of cross-utilisation of input tax credit is being rationalized.
These amendments will now be placed before the Parliament and the legislature of State and Union territories with legislatures for carrying out the amendments in the respective GST Acts. 
9.6 GST Council in its 28th meeting held on 21.07.2018 in New Delhi, also approved the new return formats and ass

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is profile.
(v)  NIL return filers (no purchase and no sale) shall be given facility to file return by sending SMS.
(vi)  There shall be quarterly filing of return for the small taxpayers having turnover below Rs. 5 Cr as an optional facility. Quarterly return shall be similar to main return with monthly payment facility but for two kinds of registered persons – small traders making only B2C supply or making B2B + B2C supply. For such taxpayers, simplified returns have been designed called Sahaj and Sugam. In these returns details of information required to be filled is lesser than that in the regular return.
(vii)  The new return design provides facility for amendment of invoice and also other details filed in the return. Amendment shall be carried out by filing of a return called amendment return. Payment would be allowed to be made through the amendment return as it will help save interest liability for the taxpayers.
THE DESIGN OF INDIAN GST:
10.1  Concurr

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GST on value addition after adjusting available credit of IGST, CGST, and SGST on his purchases. The Exporting State will transfer to the Centre the credit of SGST used in payment of IGST. The person based in the destination State will claim credit of IGST while discharging his output tax liability in his own State.  The Centre will transfer to the importing State the credit of IGST used in payment of SGST.  The relevant information will also be submitted to the Central Agency which will act as a clearing house mechanism, verify the claims and inform the respective governments to transfer the funds. The major advantages of IGST Model are:
(i)  Maintenance of uninterrupted ITC chain on inter-State transactions.
(ii)  No upfront payment of tax or substantial blockage of funds for the interState supplier or recipient.
(iii)  No refund claim in exporting State, as ITC is used up while paying the tax.
(iv)  Self-monitoring model.
(v)  Model takes 'Bus

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s and services tax. Compensation will be provided to a State for a period of five years from the date on which the State brings its SGST Act into force. For the purpose of calculating the compensation amount in any financial year, year 2015-16 will be assumed to be the base year, for calculating the revenue to be protected.  The growth rate of revenue for a State during the five-year period is assumed be 14% per annum. The base year tax revenue consists of the states' tax revenues from: (i) state Value Added Tax (VAT), (ii) central sales tax, (iii) entry tax, octroi, local body tax, (iv) taxes on luxuries, (v) taxes on advertisements, etc.  However, any revenue among these taxes arising related to supply of alcohol for human consumption, and five specified petroleum products, will not be accounted as part of the base year revenue. A GST Compensation Cess is levied on the supply of certain goods and services, as recommended by the GST Council to finance the compensation cess.&

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on the benefit to the consumer and thereby indulging in illegal profiteering. Any reduction in rate of tax or the benefit of increased input tax credit should have been passed on to the recipient by way of commensurate reduction in prices. 
10.6.1  National Anti-profiteering Authority (NAPA) has been constituted under GST by the Central Government to examine the complaints of non-passing the benefit of reduced tax incidence. The Authority shall cease to exist after the expiry of two years from the date on which the Chairman enters upon his office unless the Council recommends otherwise.
10.6.2  The Authority may determine whether any reduction in the rate of tax or the benefit of input tax credit has been passed on to the recipient by way of commensurate reduction in prices. It can order reduction in prices, imposition of penalty, cancellation of registration and any other decision as may deem fit, after inquiry into the case. 
10.7  Concept of Supply: GST

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payers (including to manufacturers other than specified category of manufacturers and service providers) having an annual turnover of up to Rs. 1 crore (Rs. 75 lakh for special category States (except J&K and Uttarakhand) enumerated in article 279A of the Constitution). This limit shall be raised to Rs. 1.5 crore after necessary amendments in the GST Acts. 
10.10  Zero rated Supplies: Export of goods and services are zero rated. Supplies to SEZs developers and SEZ units are also zero-rated. The benefit of zero rating can be taken either with payment of integrated tax, or without payment of integrated tax under bond or Letter of Undertaking. 
10.11  Cross-utilization of ITC: IGST credit can be used for payment of all taxes. CGST credit can be used only for paying CGST or IGST. SGST credit can be used only for paying SGST or IGST. 
The credit would be permitted to be utilized in the following manner:
(a)  ITC of CGST allowed for payment of CGST & IGST in

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banking, debit/ credit card and National Electronic Funds Transfer (NEFT) / Real Time Gross Settlement (RTGS).
10.14  Tax Deduction at Source: Obligation on certain persons including government departments, local authorities and government agencies, who are recipients of supply, to deduct tax at the rate of 1% from the payment made or credited to the supplier where total value of supply, under a contract, exceeds two lakh and fifty thousand rupees. The provision for TDS has not been operationalized yet.
10.15  Refunds: Refund of tax to be sought by taxpayer or by any other person who has borne the incidence of tax within two years from the relevant date. Refund of unutilized ITC also available in zero rated supplies and inverted tax structure.
10. 16 Tax Collection at Source: Obligation on electronic commerce operators to collect 'tax at source', at such rate not exceeding two per cent of net value of taxable supplies, out of payments to suppliers supplying goods or servi

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  Appellate Tribunal: Goods and Services Tax Appellate Tribunal would be constituted by the Central Government for hearing appeals against the orders passed by the Appellate Authority or the Revisional Authority. States would adopt the provisions relating to Tribunal in respective SGST Act.
10.20  Advance Ruling Authority: Advance Ruling Authority would be constituted by States in order to enable the taxpayer to seek a binding clarity on taxation matters from the department. Centre would adopt such authority under CGST Act.
10.21  Transitional Provisions: Elaborate transitional provisions have been provided for smooth transition of existing taxpayers to GST regime.
10.22 Subsuming of taxes, duties etc.: Among the taxes and duties levied and collected by the Union, Central Excise duty, Duties of Excise (Medicinal and Toilet Preparations), Additional Duties of Excise (Goods of Special Importance), Additional Duties of Excise (Textiles and Textile Products), Additional D

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o subsequently extended the CGST Act to J&K.
11.2  On 22nd June, 2017, the first notification was issued for GST and notified certain sections under CGST. Since then, one hundred and five notifications under CGST Act have been issued notifying sections, notifying rules, amendment to rules and for waiver of penalty, etc. Thirteen, twenty eight and one notifications have also been issued under IGST Act, UTGST Act and GST (Compensation to States) Act respectively. Further 68, 72, 68 and 9 rate related notifications each have been issued under the CGST Act, IGST Act, UTGST Act and GST (Compensation to States) Act respectively. Similar notifications have been issued by all the States under the respective SGST Act.
11.3  Apart from the notifications, 55 circulars and 14 orders have also been issued by CBIC on various subjects like proper officers, ease of exports, and extension of last dates for filling up various forms, etc.
ROLE OF CBIC:
12.1  CBIC is playing an active

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ier training programme has been conducted under the leadership of NACIN. This training project is aimed at imparting training on GST law and procedures to more than 60,000 officers of CBIC and Commercial Tax officers of State Governments. 
12.3  CBIC would be responsible for administration of the CGST and IGST law. In addition, excise duty regime would continue to be administered by the CBIC for levy and collection of central excise duty on five specified petroleum products as well as on tobacco products. CBIC would also continue to handle the work relating to levy and collection of customs duties.
12.4  Director General of Anti-profiteering, CBIC has been mandated to conduct detailed enquiry on anti-profiteering cases and should give his recommendation for consideration of the National Anti-profiteering Authority.
12.5  CBIC has been instrumental in handholding the implementation of GST. It had set up the Feedback and Action Room which monitored the GST implemen

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the state government holds 24.5 percent. The remaining 51 percent are held by nonGovernment financial institutions, HDFC and HDFC Bank hold 20%, ICICI Bank holds 10%, NSE Strategic Investment holds 10% and LIC Housing Finance holds 10%. The GST Council in its 27th meeting held on 04th May, 2018 has approved the change in shareholding pattern of GSTN. Considering the nature of 'state' function' performed by GSTN, the GST Council felt that GSTN be converted into a fully owned Government company. Accordingly, the Council approved acquisition of entire 51 per cent of equity held by non-Governmental institutions in GSTN amounting to Rs. 5.1 crore, equally by the Centre and the State Governments. 
13.3  The design of GST systems is based on role based access. The taxpayer can access his own data through identified applications like registration, return, view ledger etc. The tax official having jurisdiction, as per GST law, can access the data. Data can be accessed by audit authori

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n States) have be registered under GST. Unlike multiple registrations under different tax regimes earlier, a single registration is needed under GST in one State. An additional benefit under Composition scheme has also been provided for businesses with aggregate annual turnover upto Rs. 1 crore. With the creation of a seamless national market across the country, small enterprises will have an opportunity to expand their national footprint with minimal investment.   
14.4  Benefits to agriculture and Industry: GST will give more relief to industry, trade and agriculture through a more comprehensive and wider coverage of input tax set-off and service tax set-off, subsuming of several Central and State taxes in the GST and phasing out of CST. The transparent and complete chain of set-offs which will result in widening of tax base and better tax compliance may also lead to lowering of tax burden on an average dealer in industry, trade and agriculture.
14.5  Benef

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to substantive economic growth. Ultimately it will help in poverty eradication by generating more employment and more financial resources. More efficient neutralization of taxes especially for exports thereby making our products more competitive in the international market and give boost to Indian Exports. It will also improve the overall investment climate in the country which will naturally benefit the development in the states. Uniform CGST & SGST and IGST rates will reduce the incentive for evasion by eliminating rate arbitrage between neighboring States and that between intra and inter-State supplies. Average tax burden on companies is likely to come down which is expected to reduce prices and lower prices mean more consumption, which in turn means more production thereby helping in the growth of the industries. This will create India as a “Manufacturing hub”.
14.7  Ease of Doing Business: Simpler tax regime with fewer exemptions along with reduction in multiplicity of taxe

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Registration & Returns Snapshot:
S. No.
Details
As on 31st July, 2018
1.
 No. of transited (migrated) taxpayers 
66,18,871
2.
 Total No. of new applications received for registration
58,07,005
3.
 No. of applications approved
49,98,559
4.
 No. of applications rejected
7,54,629
5.
 Total No. of taxpayers; new + migrated (1 + 3)
1,16,17,430
6.
No. of taxpayers who have opted for composition  scheme
17,65,628
7.
 No. of 3 (B) returns filed for July, 2017
 64,71,410
8.
 No. of 3(B) returns filed for August, 2017
 69,90,649
9.
 No. of 3(B) returns filed for September, 2017
 72,89,199
10.
 No. of 3(B) returns filed for October, 2017
 70,01,094
11.
 No. of 3(B) returns filed for November, 2017
 70,17,942
12.
 No. of 3(B) returns filed for December, 2017
 70,49,708
13.
 No. of 3(B) returns filed for January, 2018
 70,92,810
14.
 No. of

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005
28.
 No. of GSTR 1 returns filed for April, 2018
 22,12,094
29.
 No. of GSTR 1 returns filed for May, 2018
 21,50,712
30.
 No. of GSTR 1 returns filed for June, 2018
 45,47,383
31.
 No. of GSTR 2 returns filed for July, 2017
25,72,552
32.
 No. of GSTR 4 returns filed for quarter July- September, 2017
 9,55,243
33.
No. of GSTR 4 returns filed for quarter October December, 2017
 14,18,009
34.
No. of GSTR 4 returns filed for quarter January March, 2018
 14,25,685
35.
No. of GSTR 4 returns filed for quarter April-June,  2018
 12,29,551
CHALLENGES & FUTURE AHEAD:
16.1 Any new change is accompanied by difficulties and problems at the outset. A change as comprehensive as GST is bound to pose certain challenges not only for the government but also for business community, tax administration and even common citizens of the country. Some of these challenges relate to the unfamiliarity with the new regim

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have been issued to guide field formations of CBIC and States in this regard. The government has put in place an IT grievance redressal mechanism to address the difficulties faced by taxpayers owing to technical glitches on the GST portal.
16.3 The introduction of GST is truly a game changer for Indian economy as it has replaced multi-layered, complex indirect tax structure with a simple, transparent and technology-driven tax regime. It will integrate India into a single, common market by breaking barriers to inter-State trade and commerce. By eliminating cascading of taxes and reducing transaction costs, it will enhance ease of doing business in the country and provide an impetus to “Make in India” campaign. GST will result in “ONE NATION, ONE TAX, ONE MARKET”.
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Note: This write-up is for education purposes only
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Document 1
Harmonization of Business
Processes and Formats
Common & Shared
IT
IT Infrastructure
Interfaces
Core Services
–
Registration
Return

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