Goods and Services Tax

2018 (5) TMI 1184 – KERALA HIGH COURT – TMI – Stay on recovery proceedings – sales tax appeal has been preferred and is pending before this Court – Held that: – In the light of the limited prayer sought by the petitioner herein, I am inclined to direct the petitioner to seek his relief before this Court in the proceedings reported to be pending within a period of one month from today – further proceedings to be kept in abeyance. – W.P. (C). No.15199 of 2018 Dated:- 11-5-2018 – MR. SUNIL THOMAS, J. For The PETITIONER : SRI. C. P. MOHAMMED NIAS And SRI.S.AJITH (PALAKKAD) For The RESPONDENT : SRI MOHAMMED RAFIQ JUDGMENT By Ext.P9, interest on balance tax due from the petitioner for the year 1997-98 was determined by the assessing authority.

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

2018 (5) TMI 1179 – GUJARAT HIGH COURT – TMI – Mainatainability of application – delay in filing appeal – Held that: – the delay of two days was wrongly computed, though there was no delay in filing the appeal – application disposed off as infructuous. – Civil Application (OJ) NO. 1 of 2018 in R/Tax Appeal No. 550 of 2018 Dated:- 11-5-2018 – MR. AKIL KURESHI AND MR. B.N. KARIA, JJ. For The Petitioner : Mr Nirzar S Desai IA ORDER (PER : HONOURABLE MR.JUSTICE AKIL KURESHI) Learned counsel for th

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

2018 (5) TMI 964 – AUTHORITY FOR ADVANCE RULINGS, WEST BENGAL – 2018 (13) G. S. T. L. 217 (A. A. R. – GST), [2018] 2 GSTL (AAR) 67 (AAR) – Levy of GST – Works contract / composite contracts – inclusion of freight in the value of supply – activity of supply of materials and allied services for erection of towers, testing and commissioning of transmission lines and setting up sub-stations collectively called the Tower Package. – The applicant raises separate freight bills on the contractee as per the rate schedule – applicant raises separate freight bills on the contractee as per the rate schedule annexed to the Second Contract – Section 97 (2)(a) & (e) of the CGST / WBGST Act, 2017 – whether applicant is liable to pay tax on such freight bills?
–
Held that: – It is immediately apparent that the First Contract cannot be executed independent of the Second Contract. There cannot be any ‘supply of goods’ without a place of supply. As the goods to be supplied under the First Contract in

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

a component and not a separate and independent identity, and GST is to be paid at 18% on the entire value of the composite supply, including supply of materials, freight and transportation, erection, commissioning etc. – Case Number 07 of 2018 Dated:- 11-5-2018 – Mr. Vishwanath, Member And Mr. Parthasarathi Dey, Member RULING 1. The Applicant is stated to be a supplier of materials and allied services for erection of towers, testing and commissioning of transmission lines and setting up sub-stations collectively called the Tower Package. His question is related to contracts obtained mainly from M/s Power Grid Corporation of India (hereinafter the contractee). The contractee awards the Applicant contracts for supply of Tower Packages split up into two separate sets of contracts – one for supply of materials at exfactory price (hereinafter the First Contract), and the other for supply of allied services like survey and erection of towers, testing and commissioning of transmission lines

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

port agency (hereinafter the GTA) or engaged in insurance business. He will, according to the application, arrange such services and pay the GST as applicable on the consideration paid to the suppliers of such services. His service to the contractee for inland/local transportation, the applicant argues, is exempt under the GST Act. He refers to Notification No. 9/2017 – IT (Rate) dated 28/06/2017, which, according to him, grants exemption on transportation service provided by an entity other than GTA. Since the applicant is not a GTA, his supply of transportation service, he claims, is exempt vide the above notification. 4. Before dealing with the above argument, it needs to be clarified that reference to a notification under the IGST Act should be contract specific, where an inter-state supply is taking place. In this application general nature of a supply is being dealt with rather than the place of any particular supply. Moreover, West Bengal Authority for Advance Ruling has no mand

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

ncillary services like in-transit insurance, which are included in the freight bills the contracts referred to above need to be examined. 7. The First Contract includes ex-works supply of all equipment and materials. The scope of the work includes testing and supply of transmission line towers, spares and accessories thereof, and all other materials required for successful commissioning of the transmission line. 8. The Second Contract includes all other activities required to be performed for complete execution of the tower package. The scope of the work includes transportation, in-transit insurance, loading/unloading and delivery of the goods to the contractee s site; detailed survey including route alignment, profiling etc; classification of foundations for the towers and casing of foundations based on the drawing supplied by the contractee; erection of the towers; dismantling of the existing 400kv transmission line; stringing of power line crossing section under live line condition;

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

such interdependence of the two contracts. Although awarded under two separate contract agreements, clauses under both of them make it abundantly clear that notwithstanding the break-up of the contract price, the contract shall, at all times, be construed as a single source responsibility contract and the Applicant shall remain responsible to ensure execution of both the contracts to achieve successful completion and taking over of the facilities. Any breach in any part of the First Contract shall be treated as a breach of the Second Contract, and vise versa. It is expressly understood that any default or breach under the Second Contract shall automatically be deemed as a default or breach of this First Contract also and vice-versa, and any such default or breach or occurrence giving the contractee a right to terminate the Second Contract , either in full or in part, and/or recover damages there under. 11. The two contracts are, therefore, linked by a cross fall breach clause that spe

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

defines satisfactory performance of the First Contract (supply of goods) as the time when the goods so supplied are installed and finally commissioned in terms of the Second Contract. In other words, the First Contract cannot be performed satisfactorily unless the goods have been transported and delivered to the contractee s site, applied for erection of towers, the transmission lines laid, tested and commissioned in terms of the Second Contract. The two promises – supply of the goods and the allied services – are not separately enforceable in the present context. The recipient has not contracted for ex-factory supply of materials, but for the composite supply, namely works contract service for construction of the Tower Package. 13. The price components of both the First and the Second Contracts, including that for transportation, in-transit insurance etc are to be clubbed together to arrive at the value of the composite supply of works contract service as discussed above, and taxed at

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

2018 (5) TMI 923 – CESTAT HYDERABAD – TMI – Refund claim – rejection on the grounds that the operations were carried out at different locations and which were not registered in the Centralised registration and also on the ground that invoices issued by the Service Provider were not in the name of appellant – Held that: – the judgment of Hon’ble High Court of Karnataka in the case of mPortal India Wireless Solutions Private Limited vs. CST [2011 (9) TMI 450 – KARNATAKA HIGH COURT], is applicable to the facts of the case where it was held that Registration not compulsory for refund – refund cannot be rejected on this ground.
–
Refund claim – rejection on the ground that the invoices were in the name of Pioneer overseas Corporation – Held that: – the business activity of Pioneer Overseas Corporation has been transferred to appellant by business transfer agreement w.e.f. 01.01.2015 and the reasoning given by the appellant that few vendors could not update their records with new addres

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

422/- on the ground that invoices issued by the Service Provider were not in the name of appellant. 4. Appellant herein is an exporter of services and was availing CENVAT credit of various input services; he had different locations in Hyderabad and have a centralised registration at Somajiguda, Hyderabad. They availed the CENVAT credit of service tax paid on various services at different locations which were taken on hire/rent by them from land owners. It is the case of Revenue that since these premises were not registered with the service tax department and requirement of registration is a must to avail the CENVAT credit and refund thereof in the case of export units, the refund applications were denied by both the lower authorities. 5. The first appellate authority in the impugned order in respect of the refund amount of ₹ 14,94,636/- has recorded specifically that export of output services took place from locations where unregistered premises were located and the judgment of H

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

der: (6). The assessee is a 100% export oriented unit. The export of software at the relevant point of time was not a taxable service. However, the assessee had paid input tax on various services. According to the assessee a sum of ₹ 4,36,985/- is accumulated Cenvat credit. The Tribunal has categorically held that even though the export of software is not a taxable service but still the assessee cannot be denied the Cenvat credit. The assessee is entitled to the refund of Cenvat credit. Similarly insofar as refund of Cenvat credit is concerned, the limitation under Section 11B does not apply for refund a accumulated Cenvat credit. Therefore, bar of limitation cannot be a ground to refuse Cenvat credit to the assessee. (7). Insofar as requirement of registration with the department as a condition precedent for claiming Cenvat credit is concerned, learned counsel appearing for both parties were unable to point out any provision in the Cenvat Credit Rules which impose such restricti

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

Service tax. 7. Similar view was expressed by Hon ble High Court of Madras in the case of CST Chennai [2017(3) GSTL 45 (Mad.)]; Hon ble High Court of Allahabad in the case of CCE vs. Curadev Pharma (P) Ltd [2017(7) GSTL 269 (All.)] is so held that for claiming refund under notification No. 5/206- CE, there is no condition precedent for availing credit merely for the reason that premises were not registered, benefit can not be denied. Identical views have been expressed by Hon ble High Court of Madras in the case of Commissioner of GST & CE vs. BNP Paribas Sundaram Global Securities Operations Pvt. Ltd. [2018(2) TMI 1416-MADRAS HIGH COURT)]. 8. On the face of such overwhelming judicial pronouncements on the issue, I find that the impugned order needs to be set aside and I do so. 9. As regards refund of an amount of ₹ 6,35,422/- on another ground for rejection that the invoices were in the name of Pioneer overseas Corporation. It is on record and undisputed that the business ac

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

2018 (5) TMI 889 – CESTAT HYDERABAD – TMI – Construction of houses and residential premises with different land owners, in respect of one joint development agreement – Revenue has demanded service tax from appellant on the ground that it was not paid correctly on the villas which were constructed by appellant for land owner, as a part of compliance of the agreement entered with the land owners – extended period of limitation – Held that: – It is undisputed that appellant has provided construction services to the land owner and as a consideration, received legal rights on his share of land, constructed Villas on that land and sold them, which would mean that appellant is investing the consideration received from first transaction of land owners right to construct in second transaction – merely because the consideration received from land owners is invested in construction of villas to other buyers on which service tax is paid, it cannot be concluded that service tax paid on considerati

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

d the service tax liability on the construction undertaken on joint development basis on the value of construction which is mandated in Section 67 of Finance Act, 1994, read with rules made thereunder. In our view, if once the service tax liability has been discharged on the gross amount, demand of service tax on the same amount again would amount to double taxation.
–
Extended period of limitation – Held that: – it cannot be held that there was a malafide intention on the part of the appellant to suppress any facts or make mis-statements, with an intention to evade service tax liability – demands are also hit by limitation and extended period cannot be invoked for the demands received.
–
Demand is not sustainable on merits as well as on limitation – appeal allowed – decided in – Appeal No. ST/31095/2017 – Final Order No. A/30559/2018 – Dated:- 11-5-2018 – Hon ble Mr. M. V. Ravindran, Member (Judicial) And Hon ble Mr. Madhu Mohan Damodhar, Member (Technical) Shri Alok Barthwal

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

of differential service tax for the period April 2012 to March 2015 with an allegation that they had not discharged the service tax liability towards the amount received from land owners towards allotted share of developed property. The allegations in the show cause notice also invoked the extended period of limitation and the said show cause notice relied upon the clarification given by the Board dated 10.02.2012 wherein the service tax liability has been vested on the builders/developers on the construction service involved in flats/houses given to land owners as per the agreement. The demand was issued on the basis of nearest sale value of the villas to the new prospective customers of the property which lies with the appellant. The appellant contested the show cause notice on limitation as well as on merits, taking the stand that the value of ₹ 5,495/- per sq. Ft in respect of the land owner share is incorrect as the entire value of the land was considered by them while disch

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

evidencing that service tax has been paid by them on whatever considerations that have been received and the adjudicating authority has sought to bifurcate the joint development agreement into two transactions, which is incorrect; that CBEC has issued instructions on construction services/commercial or industrial construction services under letter No. V/DGST/22/Audit/Misc/1/2004, dated 16.02.2006 wherein it has been directed that different practices and financial arrangements exists which influence the taxable value under these services; that in all such situations, the taxable value under section 67 of the Finance Act, 1994 shall be gross amount charged by service provider (builder in this case) for such services provided or to be provided and these instructions are applicable on Revenue and has not been withdrawn. 4. Ld. DR after reiterating the findings of the lower authorities, submits that to arrive at gross value for discharge of service tax, the value of construction of villas w

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

dered the submissions made at length and perused the records as also the Board circulars and instructions in this regard. We find that in the present case, Revenue has demanded service tax from appellant on the ground that it was not paid correctly on the villas which were constructed by appellant for land owner, as a part of compliance of the agreement entered with the land owners. We find that adjudicating authority has confirmed the demands holding that transactions between builder and land owner and builder and buyers have to be understood as two separate transactions. It is undisputed that appellant has provided construction services to the land owner and as a consideration, received legal rights on his share of land, constructed Villas on that land and sold them, which would mean that appellant is investing the consideration received from first transaction of land owners right to construct in second transaction. In our view, merely because the consideration received from land own

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

ration in cash for the sale of said villas. e) It is undisputed that for the sale of villas to the prospective customers, the cost of land is included in the value so arrived i.e. ₹ 5,495/- per sq.ft. f) In case of villas, which were constructed for land owner, the same were not for sale in the market but for their own use (as residences). 7. It has to be construed, in the above factual matrix, that construction of villas for the land owners is a consideration towards the land on which villas were constructed and offered for sale to prospective customers. It would not be a rocket science to understand that the value which has been arrived at for sale of villas to prospective customers, would include the consideration paid or payable for acquisition of land. It is not a case that appellant has not discharged the service tax liability on the value received for the villas from prospective customers. In our view, if the consideration towards the acquisition of the land has been inclu

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

provided or to be provided by him; (ii) In a case where the provision of service is for a consideration not wholly or partly consisting of money, be such amount in money, with the addition of service tax charged, is equivalent to the consideration; (iii) In a case where the provision of service is for a consideration which is not ascertainable, be the amount as may be determined in the prescribed manner. (2) Where the gross amount charged by a service provider, for the service provided or to be provided is inclusive of service tax payable, the value of such taxable service shall be such amount as, with the addition of tax payable, is equal to the gross amount charged. (3) The gross amount charged for the taxable service shall include any amount received towards the taxable service before, during or after provision of such service. (4) Subject to the provisions of sub-sections (1), (2) and (3), the value shall be determined in such manner as may be prescribed under Rule 3 of Service Tax

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

on received from prospective customers i.e. total gross amount. In the case in hand, the amount attributable to the consideration received by appellant in the form of land rights from the land owner stands included in the value of villas sold to prospective customer which would mean that whatever consideration was received by the appellant in form of developmental right was considered in assessable value. The Chartered Accountant s certificate placed on record by appellant goes into detail and certifies that appellant has discharged the service tax on consideration received by them and in such a case there is no reason to again demand service tax on the villas constructed and handed over to the land owners. 9. The Chartered Accountant certificate has clearly stated that to arrive at the value of construction, areas of villas to be shared to land owners, the Developer (the appellant herein) had undertaken an exercise to determine the value of construction per sq.ft for the villas and th

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

Makers Pvt. Ltd. [2013(30) STR 33 (Tri.-Chennai)]. 11. We find that CBEC vide circular dated 16.02.2006 in respect of collection of service tax under construction of complex services had issued instructions under section 57 (B) of Central Excise Act, 1944 which are made applicable to service tax under section 83 of Finance Act, 1994, in para No. 8 of the said instructions stated as under: 8. It is noticed that in the construction business different practices and financial arrangements concerning (a) promoters, developers & builders, (b) land owners (c) contractors and (d) buyers exist. These practices influence the taxable value under the construction of complex services. In all such situations, the taxable value under section 67 shall be the gross amount charged by the service provider (builder in this case) for such services provided or to be provided by him. This read with notification No. 18/2005-ST, dated 07.06.2005 entitles a builder/contractor an abetment of 67% on the gross

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

ted that service tax compliance is towards the payment of gross amount of the construction undertaken on joint development basis and received from the customers has been made. This leads to conclusion that it is evident that appellant has complied the service tax liability on the construction undertaken on joint development basis on the value of construction which is mandated in Section 67 of Finance Act, 1994, read with rules made thereunder. In our view, if once the service tax liability has been discharged on the gross amount, demand of service tax on the same amount again would amount to double taxation. 13. The reliance placed by Ld. DR on the case of LCS City Makers Pvt. Ltd. will also not carry the case of Revenue any further, as in that Bench upheld the contention of the Revenue that recording that the facts and circumstances of the case do not warrant assessment of a different value for services in respect of flats sold to individual buyers as compared to flat handedover to th

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

GST – CONCEPT & STATUS (Updated as on 01st May 2018) – Goods and Services Tax – GST – Dated:- 10-5-2018 – INTRODUCTION: The introduction of Goods and Services Tax on 1st July 2017 was a very significant step in the field of indirect tax reforms in India. By amalgamating a large number of Central and State taxes into a single tax, the aim was to mitigate cascading or double taxation in a major way and pave the way for a common national market. From the consumer point of view, the biggest advantage would be in terms of a reduction in the overall tax burden on goods, which was estimated to be around 25%-30%. Introduction of GST would also make Indian products competitive in the domestic and international markets. Studies show that this would have a positive impact on economic growth. Last but not the least, this tax, because of its transparent and self-policing character, would be easier to administer. GENESIS: 2. The idea of moving towards the GST was first mooted by the then Union Finan

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

the States were clearly demarcated in the Constitution with almost no overlap between the respective domains. The Centre had powers to levy tax on the manufacture of goods (except alcoholic liquor for human consumption, opium, narcotics etc.) while the States had powers to levy tax on sale of goods. In case of inter-State sales, the Centre had power to levy a tax (Central Sales Tax) but the tax was collected and retained entirely by the originating States. As for services, it was the Centre alone that was empowered to levy service tax. Since the States were not empowered to levy any tax on the sale or purchase of goods in the course of their importation into or exportation from India, the Centre levied and collected this tax as additional duties of customs, which was in addition to the Basic Customs Duty. This additional duty of customs (commonly known as CVD and SAD) counter balanced excise duties, sales tax, State VAT and other taxes levied on the like domestic products. Introductio

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

x- UTGST). The Parliament would have exclusive power to levy GST (integrated tax – IGST) on inter-State trade or commerce (including imports) in goods or services. The Central Government will have the power to levy excise duty in addition to the GST on tobacco and tobacco products. The tax on supply of five specified petroleum products namely crude, high speed diesel, petrol, ATF and natural gas would be levied from a later date on the recommendation of GST Council. 5. A Goods and Services Tax Council (GSTC) was constituted comprising the Union Finance Minister, the Minister of State (Revenue) and the State Finance Ministers to recommend on the GST rate, exemption and thresholds, taxes to be subsumed and other features. This mechanism would ensure some degree of harmonization on different aspects of GST between the Centre and the States as well as across States. One half of the total number of members of GSTC would form quorum in meetings of GSTC. Decision in GSTC would be taken by a m

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

ty six meetings of the GSTC have been held so far. The following major decisions have been taken by the GSTC: (i) The threshold exemption limit would be ₹ 20 lakh. For special category States (except J&K) enumerated in article 279A of the Constitution, threshold exemption limit has been fixed at ₹ 10 lakh. (ii) Composition threshold shall be ₹ 1 crore. As decided in the 23rd meeting of the GSTC, this limit shall be raised to ₹ 1.5 crore after necessary amendments in the Act. Composition scheme shall not be available to inter-State 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 ₹ 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 sch

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

to compensate States for any revenue loss on account of implementation of GST. The list of goods and services in case of which reverse charge would be applicable has also been finalized. (v) The five laws namely CGST Law, UTGST Law, IGST Law, SGST Law and GST Compensation Law have been recommended. (vi) In order to ensure single interface, all administrative control over 90% of taxpayers having turnover below ₹ 1.5 crore would vest with State tax administration and over 10% with the Central tax administration. Further all administrative control over taxpayers having turnover above ₹ 1.5 crore shall be divided equally in the ratio of 50% each for the Central and State tax administration. (vii) Powers under the IGST Act shall also be cross-empowered on the same basis as under CGST and SGST Acts with few exceptions. (viii) Power to collect GST in territorial waters shall be delegated by Central Government to the States. (ix) Formula and mechanism for GST Compensation Cess has

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

s from GTA to unregistered persons has been exempted from tax. (xv) Registration and operationalization of TDS/TCS provisions has been postponed till 30.06.2018. (xvi) The e-way bill system has been introduced nation-wide for all inter-State movement of goods with effect from 01.04.2018. As regards intra-State supplies, option has been given to States to choose any date on or before 01.06.2018. As on 01.05.2018, a total of 17 States and one Union Territory have introduced e-way bill system for intra-state movement of goods. These are Karnataka, Andhra Pradesh, Gujarat, Kerala, Telangana, Uttar Pradesh, Bihar, Haryana, Himachal Pradesh, Jharkhand, Tripura, Uttarakhand, Arunachal Pradesh, Madhya Pradesh, Meghalaya, Sikkim, Puducherry and Nagaland. (xvii) www.ewaybillgst.gov.in, managed by NIC, shall be the Common Goods and Services Tax Electronic Portal for generation of e-way bill. As on 30.04.2018, around 2.80 crore e-way bills have been generated. (xviii) E-Wallet Scheme shall be intr

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

77; 20/- per day instead of ₹ 200/- per day; whose tax liability for that month was not NIL‟ will be ₹ 50/- per day instead of ₹ 200/- per day. (xxiv) Facility has been introduced for manual filing of refund application. (xxv) Facility shall be introduced for manual filing of application for advance ruling. (xxvi) 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. (xxvii) Centralized UIN shall be issued to every Foreign Diplomatic Mission / UN Organization by the Central Government. (xxviii) www.gst.gov.in, managed by GSTN, shall be the Common Goods and Services Tax Electronic Portal. (xxix) Rate of interest on delayed payments and delayed refund has been recommended. (xxx) Rules for National Anti-Profiteering Authority have been recommended. The National Anti-Profiteering Authority has been constituted having Chairman and

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

tate supply (including stock transfers) of goods or services. This would be collected by the Centre so that the credit chain is not disrupted. (v) Import of goods would be treated as inter-State supplies and would be subject to IGST in addition to the applicable customs duties. (vi) Import of services would be treated as inter-State supplies and would be subject to IGST. (vii) CGST, SGST /UTGST & IGST would be levied at rates to be mutually agreed upon by the Centre and the States under the aegis of the GSTC. (viii) GST would replace the following taxes currently levied and collected by the Centre: a) Central Excise Duty; b) Duties of Excise (Medicinal and Toilet Preparations); c) Additional Duties of Excise (Goods of Special Importance); d) Additional Duties of Excise (Textiles and Textile Products); e) Additional Duties of Customs (commonly known as CVD); f) Special Additional Duty of Customs (SAD); g) Service Tax; h) Cesses and surcharges insofar as they relate to supply of good

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

s specified in article 279A of the Constitution) would be exempt from GST. A composition scheme (i.e. to pay tax at a flat rate without credits) would be available to small taxpayers (including to manufacturers other than specified category of manufacturers and service providers) having an annual turnover of up to ₹ 1 crore (Rs. 75 lakh for special category States (except J&K and Uttarakhand) enumerated in article 279A of the Constitution). As decided in the 23rd meeting of the GSTC, this limit shall be raised to ₹ 1.5 crore after necessary amendments in the Act. The threshold exemption and compounding scheme would be optional. (xiv) The list of exempted goods and services would be kept to a minimum and it would be harmonized for the Centre and the States as well as across States as far as possible. (xv) All Exports and supplies to SEZs and SEZ units would be zero-rated. (xvi) Credit of CGST paid on inputs may be used only for paying CGST on the output and the credit of

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

2C supplies would also be transferred by Centre to the destination State. The transfer of funds would be carried out on the basis of information contained in the returns filed by the taxpayers. (xviii) Input Tax Credit (ITC) to be broad based by making it available in respect of taxes paid on any supply of goods or services or both used or intended to be used in the course or furtherance of business. (xix) Electronic filing of returns by different class of persons at different cut-off dates. (xx) Various modes of payment of tax available to the taxpayer including internet banking, debit/ credit card and National Electronic Funds Transfer (NEFT) / Real Time Gross Settlement (RTGS). (xxi) 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 ru

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

five (5) years from the due date of filing of annual return or from the date of erroneous refund for raising demand for short-payment or non-payment of tax or erroneous refund and its adjudication in case of fraud, suppression or willful mis-statement. (xxviii) Arrears of tax to be recovered using various modes including detaining and sale of goods, movable and immovable property of defaulting taxable person. (xxix) 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. (xxx) Provision for penalties for contravention of the provision of the proposed legislation has been made. (xxxi) 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

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

exports thereby making our products more competitive in the international market and give boost to Indian Exports; (vii) Improve the overall investment climate in the country which will naturally benefit the development in the states; (viii) Uniform SGST and IGST rates will reduce the incentive for evasion by eliminating rate arbitrage between neighboring States and that between intra and inter-State sales; (ix) 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 . (B) Ease of Doing Business: (i) Simpler tax regime with fewer exemptions; (ii) Reduction in multiplicity of taxes that are at present governing our indirect tax system leading to simplification and uniformity; (iii) Reduction in compliance costs – No multiple record keeping for a variety of taxes- so lesser investment

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

ly large segment of small retailers will be either exempted from tax or will suffer very low tax rates under a compounding scheme- purchases from such entities will cost less for the consumers; (iii) Average tax burden on companies is likely to come down which is expected to reduce prices and lower prices mean more consumption. GOODS AND SERVICES TAX NETWORK: 9. Goods and Services Tax Network (GSTN) has been set up by the Government as a private company under erstwhile Section 25 of the Companies Act, 1956 . GSTN would provide three front end services to the taxpayers namely registration, payment and return. Besides providing these services to the taxpayers, GSTN would be developing back-end IT modules for 27 States who have opted for the same. The migration of existing taxpayers has already started from November, 2016. The Revenue department of both Centre and States are pursuing the presently registered taxpayers to complete the necessary formalities on the IT system operated by GSTN

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

amendment to rules and for waiver of penalty, etc. Thirteen, twenty three and one notifications have also been issued under IGST Act, UTGST Act and GST (Compensation to States) Act respectively. Further 57, 61, 57 and 8 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. 13. Apart from the notifications, 44 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: 14. CBIC is playing an active role in the drafting of GST law and procedures, particularly the CGST and IGST law, which will be exclusive domain of the Centre. This apart, the CBIC has prepared itself for meeting the implementation challenges, which are quite formidable. The number of taxpayers has gone up significantly. Th

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

assive four-tier 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. Officers of the office of CAG are also participating and getting trained in this training programme. More than 52000 officers (including around 20000 officers from States) have already been trained. Out of these 7000 officers have attended refresher-training course also. 17. It is expected that a momentous reform like GST is popularized and familiarized to the trade and industry who are the vital stakeholders in successful implementation of this reform. 18. 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 conti

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

applications which are still in process 1,05,140 8. Total No. of taxpayers; new + migrated (3 + 5) 1,08,46,658 9. No. of taxpayers who have opted for composition scheme 20,07,119 10. No. of 3 (B) returns filed for July, 2017 63,95,556 11. No. of 3(B) returns filed for August, 2017 68,63,945 12. No. of 3(B) returns filed for September, 2017 71,25,202 13. No. of 3(B) returns filed for October, 2017 67,97,880 14. No. of 3(B) returns filed for November, 2017 67,88,825 15. No. of 3(B) returns filed for December, 2017 67,77,191 16. No. of 3(B) returns filed for January, 2018 67,37,400 17. No. of 3(B) returns filed for February, 2018 66,41,318 18. No. of 3(B) returns filed for March, 2018 60,66,551 19. No. of GSTR 1 returns filed for July, 2017 56,91,216 20. No. of GSTR 1 returns filed for August, 2017 22,51,097 21. No. of GSTR 1 returns filed for September, 2017 60,74,232 22. No. of GSTR 1 returns filed for October, 2017 22,65,274 23. No. of GSTR 1 returns filed for November, 2017 22,59,271

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

Goods and Services Tax – Started By: – Rishabh Mishra – Dated:- 10-5-2018 Last Replied Date:- 13-5-2018 – Dear Experts, Please provide solution for the treatment on Free of Cost supply in GST Returns(i.e. GSTR-1, GSTR-3B). In which return we can show an FOC Invoice. Please suggest. – Reply By Ganeshan Kalyani – The Reply = In my view, such detail cannot be reported in the return because there is no value for supply of free goods. However, the input tax credit reversed proportionate to free good

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

Goods and Services Tax – Exemption from GST – supply of cereals, pulses and flour – sale under the brand name or not – the goods are being supplied through the “More Stores” which is a registered bran

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

Goods and Services Tax – Classification of goods – rate of tax – E-rickshaw tyres – the e-rickshaw is not within the sweep of the word bicycles or cycle Rickshaw – The product is classified and covere

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

Goods and Services Tax – GST – By: – Monarch Bhatt – Dated:- 10-5-2018 Last Replied Date:- 14-5-2018 – In this article, author has tried to cover the issues which are generally faced by the assessee. The issues are chosen based on the queries raised in the various seminars delivered by the author. Query: The Company has received legal consultancy services from an advocate in the month of September, 2017 and received an invoice dated 20th September, 2017. The company has made payment to an advocate on 20th March, 2018. The turnover of the company exceeds 20 lakh. The company wants to know: Whether they are liable for the payment of GST as receiver of service? What shall be considered as a point of taxation? How it is to be discharged and shown in the return? Reply: As per section 9(3) receiver of service is liable for the payment of GST, if such supplies are specified by way of an issue of notification. In this regards, notification number 13/2017-Central Tax (Rate) has been issued to

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

As per the GST provisions, under reverse charge mechanism tax is payable when the time of supply takes place. The time of supply for reverse charge payments is earliest of the following: The date of payment to the supplier (advance or payment against bill) OR 61st day from the date of invoice, if invoice is unpaid till such time OR If the transaction is for import of services, with associated enterprise, the date of debit in the books of account. In view of the provisions in the present case, the time of supply becomes the 61st day from the invoice date. i.e. 20th November, 2017 as it has not been paid prior to that and invoice is dated 20th September, 2017. c. Now the company has not discharged the GST liability in the month of September, 2017 while filing GSTR 3B. Hence, company shall pay interest on it @ 18% from 21/10/2017 (due date for filing of GSTR 3B) to till the date of filing of GSTR 3B for the month of March 2018. The same shall be shown as liability under reverse charge me

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

filing GSTR 3B for the month of March 2018 and interest shall also be mentioned in the GSTR 3B. – Reply By JAIPRAKASH RUIA – The Reply = Sir, We are honored to get the guidance from you, my humble request to please be more active on taxmanagementindia.com website so that learner people like me may get benefit of you knowledge.God Bless you sir, – Reply By Archna Gupta – The Reply = Dear Mr. BhattI have query on advocate services by senior advocate because there is distinction between advocate and senior advocate in notification number 12/2017-Central Tax (Rate). If a senior advocate provides services to another advocate or another senior advocate then what would be the consequences. Whether advocate or senior advocate receiving services from SENIOR ADVOCATE are liable to get registration? – Reply By Monarch Bhatt – The Reply = The query is with respect to the applicability of reverse charge mechanism on the advocate or firm of advocate where they are receiving the services from senior

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

y an individual advocate including a senior advocate or firm of advocates by way of legal services, directly or indirectly. Explanation. – legal service means any service provided in relation to advice, consultancy or assistance in any branch of law, in any manner and includes representational services before any court, tribunal or authority. . An individual advocate including a senior advocate or firm of advocates. Any business entity located in the taxable territory. The term business entity located in the taxable territory as referred in the column number (4) which is for recipient of service has been explained under the notification itself, under explanation (c). The explanation (c) of the notification reads as follows: (c) the business entity located in the taxable territory who is litigant, applicant or petitioner, as the case may be, shall be treated as the person who receives the legal services for the purpose of this notification. In view of the above, receiver of service

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

2018 (12) TMI 859 – CESTAT KOLKATA – TMI – Refund claim – export of services – disallowance of such refund claim under various heads on the ground of lack of nexus/co-relation between the input service and the out-put service – Rule 5 of the Cenvat Rules read with the provisions of Notification No. 27/2012- CE(NT) dated 18-06-2012 – Held that:- In the present case, some of the input services do not qualify the definition of input services in terms of Rule 2 (e) of the Cenvat Credit Rules, 2004.
–
Tribunal in various decisions has consistently held that there cannot be two different yardsticks, one for permitting credit and the other for eligibility for granting rebate. Whatever credit has been permitted to be taken, the same are permitted to be utilized and when the same is not possible, there is provision for grant of refund or rebate. Without questioning the credit taken, the eligibility to rebate cannot be questioned.
–
In some cases, the Cenvat Credit has been disallowed o

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

the appellant availed various input services, defined under Rule 2(l) of the Cenvat Credit Rules, 2004 (hereafter referred to as the Cenvat Rules , in short). The services provided by them being qualified as Export of Service , as defined under Rule 6A of the Service Tax Rules, 1994 (hereafter referred to as the Rules , in short), the appellant filed Refund Claim in terms of Rule 5 of the Cenvat Rules read with the provisions of Notification No. 27/2012- CE(NT) dated 18-06-2012 for the quarterly period from October, 2012 to December, 2012, October, 2014 to December, 2014 and January, 2015 to March, 2015. 3. The grounds for disallowance of credit in respect of all the three adjudication Orders as well as Orders-in-Appeal are summarized in the following Table:- Sl. Name of the Service Provider Nature of Service Inadmissible Cenvat Credit Reason for disallowance Remarks 1. Burman Bohra & Associates Deloittee Haskins & Sales LLP Chartered Accountants Service Rs.2,71,222/ No relatio

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

FUND/BDN/CGST&CX/ KOL-NORTH/17-18 dated 13-02-2018 and Order-in- Original No. 33/REFUND/STI/ ND/KOL/17-18 dated 13-05-2017. Refer 2017 (52) STR 497 (Tri.-All.) – CCE&ST, Noida vs. Samsung India Electronics Pvt. Ltd. 4. Bodyline Sports (ST/75551/18) Maintenance & Repair Service Rs.1,730/- No relationship or nexus Refer 2014 (33) STR 96 (Tri.-Del.) – KPMG vs. CCE, New Delhi 5. ABS Enterprise (ST/75550/18) Maintenance & Repair Service Rs.481.88 Invoice not submitted Copy of the Invoice is enclosed at page 53 of Appeal No. ST/75550/2018. 6. Godrej & Boyce Mfg. Co. Ltd. (ST/75549/18) Maintenance & Repair Service Rs.14,362/- Credit Taken on Proforma Invoice Once Service Tax has been found to be paid, merely due to the name shown as Proforma Invoice cannot be the sufficient ground for denial of refund of input service credit. Credit taken on Debit Note has been allowed. Refer 2014 (34) STR 66 (Tri.-Ahmd.) – CCE&C, Daman vs. Jalaram Plastic Pack 7. AT&T Communic

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

6/- has been sought to be disallowed towards credit in respect of out of pocket expenses. But entire credit of ₹ 1,774/- has come to be disallowed by mistake. 10. Deloitte Touche Toumatsu India Pvt. Ltd. Management Consultants (ST/75550/18) Rs.54,631/- No relationship or nexus Refer 2014 (33) STR 96 (Tri.-Del.) – KPMG vs. CCE, New Delhi 11. UCS Corporate Services Pvt. Ltd. Management Consultants (ST/75550/18) Rs.2,348/- No reason No reasons provided. Held as eligible input service. in 2014 (33) STR 96 (Tri.-Del.) – KPMG vs. CCE, New Delhi. Refund has been allowed for the subsequent period vide Order-in-Original No. 19/REFUND/BDN/ CGST&CX/KOL-NORTH/17-18 dated 13-02-2018. 12. First Advantage Pvt. Ltd. Management Consultants (ST/75550/18) Rs.4,713.20 No reason No reasons provided. But held as eligible input service in 2014 (33) STR 96 (Tri.- Del.) – KPMG vs. CCE, New Delhi. 13 R.S. Software India Ltd. Manpower Recruitment or Supply Agency s Service Rs.76,078.76 (ST/75550/18) No

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

inadmissible or ineligible, while granting the refund of the same credit. 17. Praxis Softech Solutions Pvt. Ltd. (ST/75549/18) Manpower Recruitment or Supply Agency s Service Rs.6,23,633/- Could not be correlated without description The nature of service is clear from the Invoice itself (Sample invoice at page 47 of the appeal against the appeal Order No.297/STI/ Kol/2017dated 31-10-2017) 18. Prime Online Pvt. Ltd. (ST/75549/18) Manpower Recruitment or Supply Agency s Service Rs.8,239/- Could not be correlated without description Refund has been allowed for the subsequent period vide Order-in-Original No. 19/REFUND/BDN/ CGST&CX/KOL-NORTH/17- 18 dated 13-02-2018. The nature of service is clear from the Invoice itself (Sample invoice at page 49 of the appeal against the appeal Order No.297/STI/ Kol/2017dated 31-10-2017) 19. RS Software (India) Pvt. Ltd. (ST/75549/18) Manpower Recruitment or Supply Agency s Service Rs.2,77,288/- Could not be correlated without description The nature o

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

as inadmissible or ineligible, while granting the refund of the same credit. It is wrong to refuse refund of credit lawfully taken on the ground of inadmissibility. In support of his contention, he has relied upon the decision of the Tribunal in the case of Target Sourcing Service India (P) Ltd. Vs. Commr. of Central Excise & S.Tax, Delhi II reported in 2017 (52) S.T.R. 277 (Tri.-Del.). 4.2 The ld.Advocate has also brought to the notice of the Bench that the ld adjudicating authority has contravened the principles of natural justice by denying the credit without granting any opportunity of personal hearing in respect of the Appeal Nos.ST/75550/18 & 75551/18. In this regard, reliance is placed during the course of hearing on the following reported decisions:- (i) 2015-TIOL-1044-CESTAT-DEL – Serco Global Services Pvt. Ltd. vs. CCE, Delhi-III; ST – Refund – Even if the CENVAT credit was considered to have been taken wrongly, disallowing the same requires quasi-judicial process inv

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

them an opportunity of producing the relevant material and a reasoned order shall thereafter be passed by the authority and uninfluenced by the earlier action. All contentions on merits of the claim of refund are kept open. The petitions are allowed. No costs. Our order and directions does not mean that we have adjudicated the claim of refund and that the authorities are oblige to grant it. [Emphasis supplied] (ii)2017 (52) S.T.R. 3 (S.C.)-UNION OF INDIA vs. HANIL ERA TEXTILES LTD. 5. The ld.D.R. appearing on behalf of the Revenue, has reiterated the findings of the lower authorities. 6. Heard both sides and perused the appeal records. 7. I find that the transaction undertaken by the appellants qualified to be export of service , as defined under Rule 6A of the Service Tax Rules, 1994. Since they were not in a position to utilize the accumulated Cenvat Credit, refund claim has been filed in terms of Rule 5 of Cenvat Credit Rules, 2004 read with the provisions of Notification No.27/201

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

2018 (12) TMI 775 – CESTAT KOLKATA – TMI – Penalty u/s 11AC of CEA – Clandestine removal – entire amount of differential duty alongwith interest paid on their own before intervention of the department – Held that:- Such reversal of credit on the basis of their own ascertainment and payment of interest involved thereon, before the issuance of relevant Show Cause Notice, is in agreement with the provisions of sub-section (1)(b)(i) of Section 11A of the Central Excise Act, 1944 – appeal dismissed – decided against Revenue. – Appeal No. E/77119/2017, CO-75258/2018 – FO/76566/2018 – Dated:- 10-5-2018 – Shri P.K. Choudhary, Member (Judicial) Shri D. Halder, AC(AR) for the Appellant (s) Shri Anjan Dasgupta, Advocate for the Respondent (s) ORDER Per Shri P.K. Choudhary 1. Briefly stated the facts of the case are that the appellants are engaged in the manufacture of M.S. Round, CMS Crossing, Bogie, Coupler Body/Set, Back Stop, Draft Gear etc. classifiable under Chapter 72,73 & 86 of the Fi

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

ntly paid the differential duty with interest on their own and also reiterated the fact in the relevant ER-I Returns. In fact there was no occasion to issue show cause notice. 4. Heard both sides and perused the appeal records. 5. I find that the assessee had paid the entire amount of differential duty alongwith interest on their own before intervention of the department. I observe that the first appellate authority has discussed the issue in details. The relevant portions of the impugned order are reproduced for the sake of appreciation of the facts and law on the point: 14. In view of the above, I am of the considerate opinion that the Chartered Accountant s Certificate should have been given due cognizance to display the application of judicious nature of mind by the lower authority during the course of appreciating the factual matrix of the instant case. 15. It obviously follows from the above discussions that in absence of any of the excluding elements as specified in subsection (

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

2 and 163 dated 25.07.2012 and 164 & 165 dated 26.07.2012, based on their own ascertainment, before issuance of the impugned Show Cause Notice dated 16.11.2016 was served on them. The details of such payment of duty by way of raising supplementary invoices has also been furnished by them in their relevant ER-I Returns pertaining to the months of May 11, June 12 which had been submitted by them to the Department on 09.06.2011, 10.07.2012 and 10.08.2012 respectively. All such payments of duty had been done before issuance of the impugned Show Cause Notice dated 16.11.2016. In addition, they have also paid the interest involved in this case and totaling to ₹ 9,93,447/- vide e-Challan Nos. 00274 dated 26.12.2014, 00069 dated 23.08.2014 and 00211 dated 30.08.2013, which too had been paid before issuance of the impugned Show Cause Notice dated 16.11.2016 was served on them. Such reversal of credit on the basis of their own ascertainment and payment of interest involved thereon, bef

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

garding imposition of penalty on the appellant in terms of Section 11AC of the Central Excise Act, 1944, I find that the statute explicitly bars the imposition of penalty in cases where the assessee concerned is eligible for availment of benefit of sub-section (2) of Section 11A of the said Act. Accordingly, I am of the considerate opinion that the penalty imposed by the impugned OIO deserves to be set aside being not maintainable on merit. 20. In view of the discussions above, I uphold the impugned OIO only to the extent of demand for recovery of duty along with appropriate interest. Penalty imposed is set aside and appeal is allowed on the above terms with consequential relief. 6. In view of the above discussions I do not find any infirmity in the impugned order and the same is hereby sustained. 7. The appeal filed by the revenue is dismissed. Cross objection is disposed of. (Operative portion of the order have already been pronounced in the open court) – Case laws – Decisions – Ju

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

2018 (7) TMI 1202 – CESTAT ALLAHABAD – TMI – CENVAT Credit – input services – Outdoor Catering Service – Held that:- In all the rulings pointed out by the ld. Counsel for the appellants Hon’ble High Courts of Bombay, Gujarat & Allahabad have held that Service Tax paid on Outdoor Catering Service, when such services are availed by manufacturer for providing canteen facility to the workers as required by Factory Act were admissible as input service – credit allowed – appeal allowed – decided in favor of appellant. – APPEAL No. E/70291-70297/2018-EX[SM] – A/71067-71073/2018-SM[BR] – Dated:- 10-5-2018 – Mr. Anil G. Shakkarwar, Member (Technical) Shri Hrishikesh, Advocate, for Appellant Shri Pawan Kumar Singh, Superintendent (AR), for Respondent ORDER Per: Anil G. Shakkarwar The above stated seven appeals are taken together for decision since these are arising out of common impugned Order-in-Appeal No. NOIDA-EXCUS-001-APP-1444 to 1450-17-18 dated 30/11/2017 passed by Commissioner, Central

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

ing Service is not an input service. Therefore, through various Show Cause Notices issued to the said appellants there were proposals to disallow Cenvat credit of ₹ 1,80,967/-, ₹ 1,08,712/- & ₹ 1,05,115/- to MATEL, ₹ 2,72,067/-, ₹ 1,24,695/- & ₹ 2,91,389/- to SMIEL & ₹ 3,36,890/- to MSEW. The said Show Cause Notices were adjudicated through Orders-in-Original, wherein the Original Authority has allowed the said credit through Orders-in-Original as follows: OIO No. 02 dated 21/04/2016, OIO No. 10 dated 26/04/2016, OIO No. 11 dated 26/04/2016, OIO NO. 04 dated 21/04/2016, OIO No. 03 dated 21/04/2016, OIO NO. 01 dated 21/04/2016 & OIO No. 05 dated 21/04/2016. Aggrieved by the said orders, Revenue preferred appeal before Commissioner (Appeals). In the grounds of appeal, Revenue had contended that it was held by Hon ble High Court of Calcutta in the case of Peico Electronics & Electricals Ltd. Versus Commissioner of Income Tax re

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

ed at 2010 (20) S.T.R. 577 (Bombay) in Para 32 had clearly ruled that the manufacturer is entitled to the credit of Service Tax paid on Outdoor Catering Service. He has further relied on ruling of Hon ble Gujarat High Court in the case of Commissioner of Central Excise, Ahmedabad-I Versus Ferromatik Milacron India Ltd. reported at 2011 (21) S.T.R. 8 (Gujarat). He has submitted that the Hon ble Gujarat High Court in the said case in Para 6 of their judgment have held that Canteen Services which are indispensable in relation to manufacture of the final products would certainly fall within the ambit of input service as defined under Rules. He further relied on ruling of Hon ble Allahabad High Court in the case of Commissioner of Central Excise Versus HCL Technologies reported at 215 (37) S.T.R. 716 (Allahabad), wherein the Hon ble High Court of Allahabad has relied on ruling of Hon ble Gujarat High Court in the case of Commissioner of Central Excise, Ahmedabad-I Versus Ferromatik Milacron

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

GST – States – 414/2018/4(120)/XXVII(8)/2018/CT-21 – Dated:- 10-5-2018 – Government of Uttarakhand Finance Section-8 No.414/2018/4(120)/XXVII(8)/2018/CT-21 Dehradun : : Dated:: /10th May, 2018 Notification In exercise of the powers conferred by section 164 of the Uttarakhand Goods and Services Tax Act, 2017 (06 of 2017) read with section 21 of the Uttar Pradesh General Clauses Act, 1904 (Act no. 01 of 1904) (as applicable in the State of Uttarakhand), the Governor is pleased to make the followi

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

2018 (6) TMI 464 – AUTHORITY FOR ADVANCE RULING-ANDHRA PRADESH – 2018 (13) G. S. T. L. 431 (A. A. R. – GST) – Concessional Rate of GST – N/N. 45/2017 (Central Tax Rate), dated 14th November, 2017 and N/N. 47/2017 (Integrated TAX-Rate), dated 14th November 2017 – supply of goods like scientific and technical instruments – Adoptability of notification to their supplies – Whether the supplies, made to SRI HARI KOTA HIGH ALTITUTDE RANGE (SHAR.) I SARISH DHAWAN SPACE CENTRE located at Sri Hari Kata, Andhra Pradesh, are eligible for concessional rate of tax as per N/N. 45/2017 (Central Tax Rate), dated 14th November, 2017 and N/N. 47/2017 (Integrated TAX-Rate), dated 14th November 2017?
–
Held that:- As seen from the copy of the certificates Issued by the Satish Dhawan Space Center (SHAR), it is understood that the said Institution falls under ' Public funded research institution'. As per the certificate it Is also mentioned that the said institution is under the administrative control

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

ations 45/2017 (Central Tax Rate), dated 14th November, 2017 and 47/2017 (Integrated TAX-Rate), dated 14th November 2017." 3. In the light above, the application was forwarded to both the jurisdictional officers (State tax & Central tax) to offer their remarks as par the Sec 98(1) of CGST/APGST Act, 2017, and requested for the Information, whether there is any proceedings pending before any of the forums or the authorities. This authority received reply through an e- Mail, dated 03,04.2018, that there is no pending proceeding before any forum. 4.1 Based on the remarks received from the jurisdictional officers', a personal hearing, was fixed on 04,04,2018, Shri. A.V.S Krishna Mohan Advocate and authorized representative of the applicant attended the personal hearing wherein he submitted Xerox copies Of work order and ICSI Exemption Certificates received from SHAR authorities, and submitted a separate list of goods, for which an indent is made by the SHAR. 4.2 The applicant

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

cant. As seen from the copy of the certificates Issued by the Satish Dhawan Space Center ( SHAR ), it is understood that the said Institution falls under ' Public funded research institution'. As per the certificate it Is also montioned that the said institution is under the administrative control of Department of Space, Government of India It would be pertinent to discuss the conditions laid down In the subject notification for better clarity. The relevant extract is reproduced hereunder S.No. Name of the Institutions Description of the goods Conditions (1) (2) (3) (4) 1 Public funded research institution other than a hospital or a University or an Indian Institute of Technology or Indian Institute of Science. Bangalore or a National Regional Engineering College (a) Scientific and technical instruments, apparatus, equipment (including computers); (b) accessories, parts consumables and live animals (experimental purpose); (c) Computer software, Compact Disc-Read Only Memory (CD

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

ndia or the Deputy Secretary to the State Government or the Deputy Secretary in the Union territory in concerned department to the supplier at the time of supply of the specified goods; (ii) The institution produces, at the time of supply, a certificate to the supplier from the I lead of the Institution, in each case, certifying that the said goods are required for research purposes only; (iii) In the case of supply of live animals for experimental purposes, the institution produces, at the time of supply, a certificate to the supplier from the Head of the Institution that the live animals are required for research purposes and enclose a no objection certificate issued by the Committee for the Purpose of Control and Supervision of Experiments on Animals. The subject Notification gives concessional rate of duty to specific goods as mentioned at Column 3 of above table when supplied to institutions mentioned at Column 2 of the above table, subject to the condition as mentioned al column

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

GST – States – 4-P/2017 – Dated:- 10-5-2018 – FINANCE SECRETARIAT NOTIFICATION (4-P/2017) No. FD 47 CSL 2017, Bengaluru, dated: 10/05/2018. In exercise of the powers conferred by Section 164 of the Karnataka Goods and Services Tax Act, 2017 (Karnataka Act 27 of 2017), on the recommendation of the GST Council, the Government of Karnataka hereby makes the following rules further to amend the Karnataka Goods and Services Tax Rules, 2017, namely:- RULES 1. Title and commencement – (1) These rules may be called the Karnataka Goods and Services Tax (Sixth Amendment) Rules, 2018. (2) Save as otherwise provided, they shall come into force on the date of their publication in the Official Gazette. 2. Amendment of rule 89 – In rule 89, for sub-rule (5), the following shall be substituted, namely:- "(5). In the case of refund on account of inverted duty structure, refund of input tax credit shall be granted as per the following formula:- Maximum Refund Amount = [(Turnover of inverted rated s

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

r sub-section (5) of section 54 of the Central Goods and Services Tax Act, 2017 (Central Act 12 of 2017), read with section 20 of the Integrated Goods and Services Tax Act, 2017(Central Act 13 of 2017), shall be deposited in the Fund. (2) Where any amount, having been credited to the Fund, is ordered or directed to be paid to any claimant by the proper officer, appellate authority or court, the same shall be paid from the Fund. (3) Accounts of the Fund maintained by the State Government shall be subject to audit by the Comptroller and Auditor General of India. (4) The Government shall, by an order, constitute a Standing Committee (hereinafter referred to as the 'Committee') with a Chairman, a Vice-Chairman, a Member Secretary and such other members as it may deem fit and the Committee shall make recommendations for proper utilisation of the money credited to the Fund for welfare of the consumers. (5) (a) The Committee shall meet as and when necessary, generally four times in a

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

be, such books, accounts, documents, instruments, or commodities in custody and control of the applicant, as may be necessary for proper evaluation of the application; (c) to require any applicant to allow entry and inspection of any premises, from which activities claimed to be for the welfare of consumers are stated to be carried on, to a duly authorised officer of the State Government or the Central Government, as the case may be; (d) to get the accounts of the applicants audited, for ensuring proper utilisation of the grant; (e) to require any applicant, in case of any default, or suppression of material information on his part, to refund in lump-sum along with accrued interest, the sanctioned grant to the Committee, and to be subject to prosecution under the Act; (f) to recover any sum due from any applicant in accordance with the provisions of the Act; (g) to require any applicant, or class of applicants to submit a periodical report, indicating proper utilisation of the grant; (

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

f the money available in the Fund; (c) for making available grants (on selective basis) for reimbursing legal expenses incurred by a complainant, or class of complainants in a consumer dispute, after its final adjudication; (d) for making available grants for any other purpose recommended by the Central Consumer Protection Council (as may be considered appropriate by the Committee); (e) for making available up to 50% of the funds credited to the Fund each year, for publicity/ consumer awareness on GST, provided the availability of funds for consumer welfare activities of the Department of Consumer Affairs is not less than twenty five crore rupees per annum. Explanation .- For the purposes of this rule, (a) 'applicant' means, (i) the State Government or the Central Government; (ii) regulatory authorities or autonomous bodies constituted under an Act of Parliament or the Legislature of the State or of any other State or Union Territory; (iii) any agency or organization engaged in

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

b) 'application' means an application in the form as specified by the Standing Committee from time to time; (c) 'Central Consumer Protection Council' means the Central Consumer Protection Council, established under sub-section (1) of section 4 of the Consumer Protection Act, 1986 (Central Act 68 of 1986), for promotion and protection of rights of consumers; (d) 'Committee' means the Committee constituted under sub-rule (4); (e) 'consumer' has the same meaning as assigned to it in clause (d) of sub-section (1) of section 2 of the Consumer Protection Act, 1986 (Central Act 68 of 1986), and includes consumer of goods on which State tax has been paid; (f) 'Fund' means the Fund established by the State Government under section 57 of the Karnataka Goods and Services Tax Act, 2017 (Karnataka Act 27 of 2017); (g) 'proper officer' means the officer having the power under the Act to make an order that the whole or any part of the state tax is refun

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

inputs contained in semi-finished or finished goods held in stock, and capital goods/plant and machinery on which input tax credit is required to be reversed and paid back to Government. Sl.No. GSTIN Invoice/Bill of Entry Description of inputs held in stock, inputs contained in semi-finished or finished goods held in stock and capital goods /plant and machinery Unit Quantity Code (UQC) Qty Value (As adjusted by debit/ credit note) Input tax credit/Tax payable (whichever is higher) (Rs.) No. Date Central tax State/Union territory tax Integrated tax Cess 1 2 3 4 5 6 7 8 9 10 11 12 8 (a) Inputs held in stock (where invoice is available) 8 (b) Inputs contained in semi-finished or finished goods held in stock (where invoice is available) 8 (c) Capital goods/plant and machinery held in stock 8 (d) Inputs held in stock or inputs as contained in semi-finished /finished goods held in stock (where invoice is not available) 9. Amount of tax payable and paid (based on Table 8) Sl.No. Description I

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

dd/mm/yyyy Instructions: 1. This form is not required to be filed by taxpayers or persons who are registered as :- (i) Input Service Distributors; (ii) Persons paying tax under section 10; (iii) Non-resident taxable person; (iv) Persons required to deduct tax at source under section 51; and (v) Persons required to collect tax at source under section 52. 2. Details of stock of inputs, inputs contained in semi-finished or finished goods and stock of capital goods/plant and machinery on which input tax credit has been availed. 3. Following points need to be taken care of while providing details of stock at Sl. No.8: (i) where the tax invoices related to the inputs held in stock or inputs contained in semi-finished or finished goods held in stock are not available, the registered person shall estimate the amount under sub-rule (3) of rule 44 based on prevailing market price of the goods; (ii) in case of capital goods/ plant and machinery, the value should be the invoice value reduced by 1/

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

GST – States – MGST-1018/C.R.38/Taxation-1 – Dated:- 10-5-2018 – FINANCE DEPARTMENT Madam Cama Marg, Hutatma Rajguru Chowk, Mantralaya Mumbai 400 032, dated the 10th May 2018 NOTIFICATION Notification No. /2018- State Tax MAHARASHTRA GOODS AND SERVICES TAX ACT, 2017 No. MGST-1018/C.R.38/Taxation-1.-In exercise of the powers conferred by section 99 of the Maharashtra Goods and Services Tax Act, 2017 (Mah. XLIII of 2017), the Government of Maharashtra, hereby constitutes an Authority known as The

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

Goods and Services Tax – Started By: – ramappa Nagappa – Dated:- 9-5-2018 Last Replied Date:- 16-6-2018 – whether Reply By KASTURI SETHI – The Reply = Assessable value is to be arrived at after deducting the percentage of abatement from MRP. On that value NCCD will be computed. – Reply By YAGAY and SUN – The Reply = Abatement rate runs from a range 50% -55% for tobacco products depending on the classification and containing the pertcentage of tobacco in particulars product. – Reply By KASTURI SETHI – The Reply = Section 4A of Central Excise Act is applicable. – Reply By YAGAY and SUN – The Reply = Please refer appendix XI – MRP Based assessment – Percentage of abatement read with Schedule III of the C.E.Tariff and appendix X of the NCCD i

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

Goods and Services Tax – Started By: – Narendra Soni – Dated:- 9-5-2018 Last Replied Date:- 10-5-2018 – Kindly suggest, whether sale value of below mentioned items will be included in Adjusted Total turnover for claiming refund of ITC accumulated on export of goods/services under Bond/LUT, in its formula:-1.Sale of MEIS (Duty credit scrip issued by DGFT as incentive on export) on which GST rate is 0% (NIL rated)2.Sale of Waste & Scrap of fire woods on which GST rate is 0% (NIL rated).Kindly suggest at the earliest. – Reply By YAGAY and SUN – The Reply = In our view there is no such need as first point relate to post export activity and second limb is associated with fire wood on which at any stage GST is not applicable. – Reply By Nare

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

Goods and Services Tax – Started By: – SURYAKANT MITHBAVKAR – Dated:- 9-5-2018 Last Replied Date:- 13-5-2018 – As per GST Act, we have to mention all record kept i.e. Challon Number in GSTR1. In our case we have not mentioned any challon number under Material supply under warranty , Inter Unit Transfer, Returnable Goods in particular month. Since our GSTR1 for Mar-18 is due can we mention altogether challon number i.e. (July-17 to Mar-18) in Month of Mar-18. – Reply By DR.MARIAPPAN GOVINDARAJAN – The Reply = If there is supply you have to mention invoice number. In my view it cannot altogether be mentioned – Reply By SANJEEV JADHAV – The Reply = Dear Sir, GST is the new law and their may be possibilities of mistakes at the initial stage du

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

Goods and Services Tax – Started By: – Senthilkumar R – Dated:- 9-5-2018 Last Replied Date:- 10-5-2018 – Sir,One machine purchased from karnadaka to tamilnadu in bill to and ship to concept.billing address pay the payment and utilised the IGST amount. But supplier passing the taxamount, to shipping address. How to rectify the problem. – Reply By YAGAY and SUN – The Reply = Through issuance of revised invoice you may rectify this problem. – Reply By Senthilkumar R – The Reply = These transaction

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

Goods and Services Tax – Started By: – Shrenik Bhura – Dated:- 9-5-2018 Last Replied Date:- 9-5-2018 – Sequence of events: A. Goods are billed to us my manufacturer based in state A. B. Handed over to GST registered transporter to transport to us in state B. C. Payment is made by us before receipt of goods in almost all cases. D. Transporter fills part B for e-waybill generation and dispatches goods from state A to state B which are more than 1000 km apart. E. Transporter bills us for transportation on a monthly basis and we make the payment and also pay a 5% GST as RCM with our monthly 3B. F. Goods are kept in most cases at transporters warehouse much beyond the e-waybill validity period of 15 days. We also have an insurance cover for the

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

il the ITC? – Reply By MUKUND THAKKAR – The Reply = G. Goods are shifted to our warehouses or shop on a periodic basis in the next 2-3 months and at times even 5-6 months based on demand. All our warehouses are in state B itself and have been listed in additional places of business.Goods kept at the transporter warehouse :- if such transporter place if you had listed in additional place & additional place meet all condition as per GST rules then you are eligable to take ITC after receiving the goods at transporter place ( your additional place).E-way Bill Validity as per my point of view will be not effected.if Bill to ship to invoice showing your additional place in invoice. other wise in future may dept may raised the objection. – Rep

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

Goods and Services Tax – Started By: – Pankaj Aggarwal – Dated:- 9-5-2018 Last Replied Date:- 9-5-2018 – Dear Experts,Whether taxi services for transportation of faculty or staff provided to educational institute i.e. university is exempted from GST or not? – Reply By Alkesh Jani – The Reply = Sir, In terms of Sl.No.66 (b) of Notification No. 12/2017 -CT (Rates) dated 28th June, 2017, Services provided to educational institute is exempted but this exemption shall apply to an educational institution other than an institution providing services by way of pre-school education and education up to higher secondary school or equivalent. In your case, educational institute is an University and therefore, exemption benefit is not available and GST

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

Goods and Services Tax – Scope of Supply – disposal of the scrap vehicles – supply of such motor vehicles as scrap after its usage is an activity of supply in the course or furtherance of business and

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

Goods and Services Tax – Input tax credit on motor vehicle – cash carry vans – used for cash management business – As the Members of the Advance Ruling Authority differ in respect of this question as

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =