Goods and Services Tax

GST – States – 01/2018-GST – Dated:- 5-5-2018 – GOVERNMENT OF ASSAM ORDERS BY THE COMMISSIONER OF STATE TAX, ASSAM KAR BHAWAN, DISPUR, GUWAHAT1-6 ORDER No. 01/2018-GST Dated Dispur, the 5th May, 2018. Subject: Extension of date for submitting the statement in FORM GST TRAN-2 under rule 117(4)(b)(iii) of the Assam Goods and Services Tax Rules, 2017. No. CT/GST-12/2017/61.- In exercise of the powers conferred by sub-clause (iii) of clause (b) of sub-rule (4) of rule 117 of the Assam Goods and Ser

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GST – States – 02/2018-GST – Dated:- 5-5-2018 – GOVERNMENT OF ASSAM ORDERS BY THE COMMISSIONER OF STATE TAX, ASSAM KAR BHAWAN, DISPUR, GUWAHATI-6 Order No. 02/2018-GST Dated Dispur, the 5th May, 2018. Subject: Incidence of GST on providing catering services in train. No. CT/GST-12/2017/62.- Different GST rates are being applied for mobile and static catering in Indian Railways which is presently leading to a situation whereby the same licensee (selected by Indian Railways/IRCTC) supplying the same food would be subjected to different GST rates depending on whether it is mobile or static catering, as also which variant of mobile catering it is [pre-paid (without option), pre-paid (with option) or post-paid]. The rate difference is resulting

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2018 (5) TMI 645 – GUJARAT HIGH COURT – TMI – Constitutional vires of Section 109 of the Central Goods & Services Tax Act, 2017 as also that of the Gujarat Goods & Services Tax Act, 2017 – main contention of the petitioners is that the Act envisages constitution of such Tribunals comprising of one Judicial and two Technical members.
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Notices issued.
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Since vires of Central legislation are under challenge, let there be notice to the Attorney General also. – Special Civil Application No. 7129 of 2018 Dated:- 5-5-2018 – MR. AKIL KURESHI AND MR. B.N. KARIA, JJ. For The Petitioner : Hiral U. Mehta, Nipun P. Singhvi and Vishal J. Dave, Advs. ORDER Akil Kureshi, J. – Petitioners have challenged the constitutional vires of Section 109

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GST – States – 001/2018-GST – Dated:- 5-5-2018 – GOVERNMENT OF ASSAM ORDERS BY THE COMMISSIONER OF STATE TAX, ASSAM KAR BHAWAN, DISPUR, GUWAHAT1-6 ORDER No. 01/2018-GST Dated Dispur, the 5th May, 2018. Subject: Extension of date for submitting the statement in FORM GST TRAN-2 under rule 117(4)(b)(iii) of the Assam Goods and Services Tax Rules, 2017. No. CT/GST-12/2017/61.- In exercise of the powers conferred by sub-clause (iii) of clause (b) of sub-rule (4) of rule 117 of the Assam Goods and Se

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GST – States – 002/2018-GST – Dated:- 5-5-2018 – GOVERNMENT OF ASSAM ORDERS BY THE COMMISSIONER OF STATE TAX, ASSAM KAR BHAWAN, DISPUR, GUWAHAT1-6 ORDER No. 02/2018-GST Dated Dispur, the 5th May, 2018. Subject: Incidence of GST on providing catering services in train. No. CT/GST-12/2017/62.- Different GST rates are being applied for mobile and static catering in Indian Railways which is presently leading to a situation whereby the same licensee (selected by Indian Railways/IRCTC) supplying the same food would be subjected to different GST rates depending on whether it is mobile or static catering, as also which variant of mobile catering it is [pre-paid (without option), pre-paid (with option) or post-paid]. The rate difference is resultin

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Goods and Services Tax – Rate of GST – The works contract service of maintaining railway track as per the above LOA is taxable @ 18% under the Serial no. 3 (ii) of the Rate Notification – AAR – TMI Updates – Highlights

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Goods and Services Tax – 27th GST council meeting discusses change in GST rate for digital transactions and imposition of Sugar Cess – TMI Updates – Highlights

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Goods and Services Tax – Change in the shareholding pattern of GSTN – TMI Updates – Highlights

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Goods and Services Tax – GST Council approves principles for filing of new return design based on the recommendations of the Group of Ministers on IT simplification – TMI Updates – Highlights

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Goods and Services Tax – GST e-way bill-01 – non furnishing of the details of conveyance in Part B of GST e-way bill-01 – once the Government itself has clarified the situation by allowing the transpo

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Goods and Services Tax – GST – Dated:- 4-5-2018 – 1. Incentive to promote Digital Transactions: (a) Keeping in view the need to move towards a less cash economy, the Council has discussed in detail the proposal of a concession of 2% in GST rate [where the GST rate is 3% or more, 1% each from applicable CGST and SGST rates] on B2C supplies, for which payment is made through cheque or digital mode, subject to a ceiling of ₹ 100 per transaction, so as to incentivise promotion of digital paym

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Goods and Services Tax – GST – Dated:- 4-5-2018 – The Goods and Services Tax Network – Special Purpose Vehicle (GSTN-SPV) was created as a private limited, not-for-profit company under Section 25 of the Companies Act, 1956 (Section 8 of the Companies Act, 2013) by Govt. of India on 28th March, 2013 with an objective to provide shared IT infrastructure and services to Centre and States Governments, tax payers and other stakeholders for implementation of Goods and Services Tax (GST) in the country. Presently, the Central Government and State Government are holding 24.5% equity shares respectively and the remaining 51% are held by non-Governmental institutions and through various mechanisms, GSTN is under strategic control of gove

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Goods and Services Tax – GST – Dated:- 4-5-2018 – GST Council today in its 27th meeting approved principles for filing of new return design based on the recommendations of the Group of Ministers on IT simplification. The key elements of the new return design are as follows – One monthly Return: All taxpayers excluding a few exceptions like composition dealer shall file one monthly return. Return filing dates shall be staggered based on the turnover of the registered person to manage load on the IT system. Composition dealers and dealers having nil transaction shall have facility to file quarterly return. Unidirectional Flow of invoices: There shall be unidirectional flow of invoices uploaded by the seller on anytime basis during the month

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load the invoices. No automatic reversal of credit: There shall not be any automatic reversal of input tax credit from buyer on non-payment of tax by the seller. In case of default in payment of tax by the seller, recovery shall be made from the seller however reversal of credit from buyer shall also be an option available with the revenue authorities to address exceptional situations like missing dealer, closure of business by supplier or supplier not having adequate assets etc. Due process for recovery and reversal: Recovery of tax or reversal of input tax credit shall be through a due process of issuing notice and order. The process would be online and automated to reduce the human interface. Supplier side control: Unloading of invoices

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y for claiming input tax credit on self declaration basis, as in case of GSTR 3B now. During this stage 2, the dealer will be constantly fed with information about gap between credit available to them as per invoices uploaded by their sellers and the provisional credit being claimed by them. After 6 months of this phase 2, the facility of provisional credit will get withdrawn and input tax credit will only be limited to the invoices uploaded by the sellers from whom the dealer has purchased goods. Content of the return and implementation: Return shall be simplified also by reducing the content/information required to be filled in the return. The details of the design of the return form, business process and legal changes would be worked out

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Goods and Services Tax – Started By: – Alkesh Jani – Dated:- 4-5-2018 Last Replied Date:- 10-5-2018 – Sir, The Standing Counsel providing legal service i.e. to say representational service, to the Govt. Department or to the Board and bill is raised in the name of HOD of the Govt. Department. Now the query is Q.1. Whether this activity falls under Section 9 (3) or 9(4) of CGST Act,2017? Q.2. If it falls under Section 9(3), then Govt. Department is required to take registration and pay appropriate GST on RCM basis? Q.3. If the answer to Q.2 above is Yes and if Department has not obtained registration then SCN is required to be issued to HOD or DDO (Drawing and Disbursement Officer)? Thanks in Advance – Reply By KASTURI SETHI – The Reply = RC

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By Alkesh Jani – The Reply = Sir, Thanks for reply, if RCM is restricted to business entity only,then will that services will fall under Section 9(4) of CGST, Act, 2017? (as per definition person includes Govt.) and as there is no exemption in this regards. – Reply By KASTURI SETHI – The Reply = The 25th Goods and Services Tax (GST) Council meeting recommended the Central Government to exempt legal services provided to Government, Local Authority, Governmental Authority and Government Entity.Read more at: http://www.taxscan.in/legal-services-provided-govt-entities-service-providing-information-rti-act-exempted/16379/ – Reply By YAGAY and SUN – The Reply = We endorse the view of Kasturi Sir. The 25th Goods and Services Tax (GST) Council meet

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the base of exemption. Second query can be raised is, if legal services are under RCM for business entity, then will it be under forward charge for Charitable Trust, Society, NGOs, non-profit companies, which are not business entity, and can be covered under Section 9(1) of CGST Act,2017. I am raising these queries just to enrich my knowledge. Thanks – Reply By KASTURI SETHI – The Reply = Sh.Alkesh Jani Ji,. Logically legal services should come under forward charges for the categories you have mentioned but I could not trace out the basis. Secondly, notification must have been issued by now because yesterday 27th meeting has been held. If not, matter should be brought to the notice of GST Council. – Reply By YAGAY and SUN – The Reply = We a

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Goods and Services Tax – GST – By: – Mr. M. GOVINDARAJAN – Dated:- 4-5-2018 Last Replied Date:- 27-7-2018 – Registration under GST Act Section 22 of the Central Goods and Services Tax Act, 2017 provides for registration. Section 22 provides the list of person who is liable to be registered under this Act. It also provides exemption from registering with GST Authorities. Every supplier shall be liable to be registered other than special category States, from where he makes a taxable supply of goods or services or both, if his aggregate turnover in a financial year exceeds ₹ 20 lakhs. In respect of Special category States, this threshold limit is ₹ 10 lakhs. Section 23 provides the list of persons who are liable for registration. Section 24 provides the list of persons who are liable to be registered compulsory under the provisions of the Act. The persons making any inter-State supply are also liable to be registered but later the persons making any inter-State supply by mea

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gamated which other entity, demerged or otherwise disposed of; or there is any change in the constitution of the business; or the taxable person, other than the person registered under section 25(3) [voluntary registration], is no longer liable to be registered under section 22 or 24. Section 29(2) of the Act provides that the Superintendent of Central tax may cancel the registration of a person from such date, including any retrospective date, as he may deem fit, where- a registered person has contravened the provisions of this Act or the rules made there under as may be prescribed; or a person paying tax under composition scheme has not furnished returns for three consecutive tax periods; or any registered person, other than a person paying tax under composition scheme has not furnished returns for a continuous period of six months; or any person who has taken voluntary registration has not commenced business within six months from the date of registration ; or registration has been

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iod of 30 days of the occurrence of the event warranting the cancellation, either directory or through a Facilitation Center notified by the Commissioner. Rule 21 of Central Goods and Services Tax Rules, 2017 provides that the registration granted to a person is liable to be cancelled if the said person- does not conduct any business from the declared place of business; or issues invoice or bill without supply of goods or services in violation of the provisions of this Act or the rules made there under; or violates the provisions ofsection 171 of the Act (anti-profiteering) or the rules made there under. Surrender under voluntary registration The proviso to Rule 20 provides that no application of surrender of registration shall be considered in case of a taxable person, who has registered voluntarily, before the expiry of a period of one year from the effective date of registration. But now the above said proviso has been omitted vide Notification No. 03/2018-CT, dated 23.01.2018, with

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of the reply to the show cause notice issued, cancel the registration with effect from a date to be determined by him and notify the taxable person, directing him to pay arrears of any tax, interest or penalty including the amount liable to be paid. Rule 22(5) provides that the above said procedure shall be applicable to the legal heirs of a deceased proprietor, as if the application had been submitted by the proprietor himself. Rule 22(4) provides that where the reply furnished is found to be satisfactory, the proper officer shall drop the proceedings and pass an order in Form GST REG – 20.. Deemed cancellation The cancellation of registration under the State Goods and Services Tax Act or the Union Territory Goods and Services Tax Act, shall be deemed to be a cancellation of registration under this Act. Consequence of cancellation Section 29(3) provides that the cancellation of registration shall not affect the liability of the person to pay the tax and other dues under the Act or to

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chinery under section 15, whichever is higher. Revocation of cancellation of registration Rule 23 provides the procedure for revocation of cancellation of registration. The procedure is as detailed below- A registered person, whose registration is cancelled by the proper officer, on his own motion, may submit an application for revocation of cancellation of registration. The application shall be in Form GST REG – 21. The application shall be submitted to the proper officer within a period of 30 days from the date of service of the order of cancellation of registration at the common portal either directly or through a Facilitation Centre notified by the Commissioner. No application for revocation shall be filed, if the registration has been cancelled for the failure of the registered person to furnish his returns, unless such returns are furnished and any amount due as tax along with any interest, penalty and late fee payable. If the proper officer is satisfied, for reasons to be record

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of the application within a period of 30 days from the date of receipt of such information or clarification from the applicant. – Reply By NEETHIARASU ARUNACHALAM – The Reply = Sir, Thanks for the much needed article, I would like to submit certain clarification to the forum in connection with cancellation of registration. As I wish to do away with by business, I have applied for cancellation of the GST registration on 01/04/2018 after submitting the necessary returns for the quarter ending Jan to March also remitted GSTR3B for the Month of March'2018. However the superintendent requested submit the last three year accounts and ITR copies, after submitting the same, once again I received an letter to file GSTR3B upto date with appropriate late fee and produce the copy of the same. Kindly clarify the same whether I have pay for GSTR3B upto date as my contention is that I have filed and remitted GSTR3B upto march'2018 and filed for cancellation in 1st April' 2018 – Articles –

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Goods and Services Tax – GST – By: – CASanjay Kumawat – Dated:- 4-5-2018 Last Replied Date:- 4-6-2018 – The term export means sending of goods or services produced in one country to another country. The seller of such goods and services is referred to as an exporter; the foreign buyer is referred to as an importer. Under GST, export of goods with its grammatical variations and cognate expressions, means taking goods out of India to a place outside India [Section 2(5) of the IGST Act, 2017] and export of services means the supply of any service when,-(i) the supplier of service is located in India; (ii) the recipient of service is located outside India; (iii) the place of supply of service is outside India; (iv) the payment for such service has been received by the supplier of service in convertible foreign exchange; and (v) the supplier of service and the recipient of service are not merely establishments of a distinct person in accordance with Explanation 1 in section 8 [Section 2(6)

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cludes amendments in the rules, changes in the business procedures of common portal and customs automated system to address the systemic issues. Many of the errors plaguing the claims for refunds are on account of inadequate familiarisation of the exporters with the GST laws and data entry errors in the various GSTRs / forms. Government has carried out outreach programmes by issuing guidance circulars, advisories, FAQs, advertisements etc and also provided an alternative procedure involving manual interface where the errors could not be corrected online. The efforts are beginning to show positive results. A standard operating procedure applicable to both Central and State GST has been put in place by virtue of various Circulars and clarifications issued with regard to processing of ITC refund. GST Council, in its last meeting on 10th March 2018, has directed all States tax authorities to proactively clear refund claims. Exporting community is requested to take benefit of this fortnight

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ledgement to the assessee after accepting the refund application. According to Tax Officer, reason behind non-accepting is that assessee s tax file is not reflecting in their system or refund application is not reflecting on their computer system. (Only God knows what is the logic behind this reason/excuse despite being of the fact that the same tax officers are handling other tax related matters of the same assessee.) Clarification: As per para 2.5 of the Circular No. 17/17/2017 – GST, dated 15.11.2017, it has been clarified that the registered person needs to file the refund claim with the jurisdictional tax authority to which the taxpayer has been assigned as per the administrative order issued in this regard by the Chief Commissioner of Central Tax and the Commissioner of State Tax. In case such an order has not been issued in the State, the registered person is at liberty to apply for refund before the Central Tax Authority or State Tax Authority till the administrative mechanism

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of GST paid in case of export of goods? Is shipping filed sufficient for claiming of refund? Clarification: As per para 2.2 of the Circular No. 17/17/2017 – GST, dated 15.11.2017, it has been clarified that the refund of integrated tax paid on goods exported out of India is governed by Rule 96 of the CGST Rules. The shipping bill filed by an exporter shall be deemed to be an application for refund in such cases. The application shall be deemed to have been filed only when export manifest or export report is filed and the applicant has furnished a valid return in FORM GSTR-3 or FORM GSTR-3B, as the case may be. Upon receipt of the information regarding furnishing of a valid return in FORM GSTR-3 or FORM GSTR-3B, as the case may be, from the common portal, the system designated by the Customs shall process the claim for refund and an amount equal to the integrated tax paid in respect of such export shall be electronically credited to the bank account of the applicant. Any order regarding

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d before the jurisdictional proper officer along with all necessary documentary evidences as applicable (as per the details in statement 2 or 4 of Annexure to FORM GST RFD – 01), within the time stipulated for filing of such refund under the CGST Act. Issue#4: How to get refund of unutilized input tax credit on inputs or input services used in making zero-rated supplies? Clarification: As per para 2.4 of the Circular No. 17/17/2017 – GST, dated 15.11.2017, it has been clarified that the application for refund of unutilized input tax credit on inputs or input services used in making such zero-rated supplies shall be filed in FORM GST RFD-01A on the common portal and the amount claimed as refund shall get debited in accordance with sub-rule (3) of rule 86 of the CGST Rules from the amount in the electronic credit ledger to the extent of the claim. The common portal shall generate a proof of debit (ARN- Acknowledgement Receipt Number) which would be mentioned in the FORM GST RFD-01A submi

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s been clarified that a supplier availing of drawback only with respect to basic customs duty shall be eligible for refund of unutilized input tax credit of central tax / State tax / Union territory tax / integrated tax / compensation cess under the said provision. It is further clarified that refund of eligible credit on account of State tax shall be available even if the supplier of goods or services or both has availed of drawback in respect of central tax. Issue#6: The refund claims are not being processed on account of mis-matches between data contained in FORM GSTR-1, FORM GSTR-3B and shipping bills/bills of export. How refund will be processed? Clarification: As per para 3 of the Circular No. 37/11/2018 – GST, dated 15.03.2018, it has been clarified that the facility of filing of Table 9 in FORM GSTR-1, an amendment table which allows for amendments of invoices/ shipping bills details furnished in FORM GSTR-1 for earlier tax period, is already available. If a taxpayer has commit

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.03.2018, it has been clarified that the substantive benefits of zero rating may not be denied where it has been established that exports in terms of the relevant provisions have been made. The delay in furnishing of LUT in such cases may be condoned and the facility for export under LUT may be allowed on ex post facto basis taking into account the facts and circumstances of each case. Issue#8: Exporters have been asked to pay integrated tax where the goods have been exported but not within three months from the date of the issue of the invoice for export? Is it valid process? Rule 96A (1) of the CGST Rules provides that any registered person may export goods or services without payment of integrated tax after furnishing a LUT / bond and that he would be liable to pay the tax due along with the interest as applicable within a period of fifteen days after the expiry of three months or such further period as may be allowed by the Commissioner from the date of issue of the invoice for exp

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r granting extension of time limit for export as provided in the said sub-rule on post facto basis keeping in view the facts and circumstances of each case. The same principle should be followed in case of export of services. Issue#9: Whether with respect to a refund claim, deficiency memo can be issued more than once? Clarification: As per Rule 90 of the CGST Rules, once an applicant has been communicated the deficiencies in respect of a particular application, the applicant shall furnish a fresh refund application after rectification of such deficiencies. As per para 6.1 of the Circular No. 37/11/2018 – GST, dated 15.03.2018, it has been clarified that there can be only one deficiency memo for one refund application and once such a memo has been issued, the applicant is required to file a fresh refund application, manually in FORM GST RFD-01A. This fresh application would be accompanied with the original ARN, debit entry number generated originally and a hard copy of the refund appli

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-declaration at the time of submission of LUT that he has not been prosecuted. Persons who are not eligible to export under LUT are required to export under bond. Clarification: As per para 7.2 of the Circular No. 37/11/2018 – GST, dated 15.03.2018, it has been clarified that this requirement is already satisfied in case of exports under LUT and asking for self-declaration with every refund claim where the exports have been made under LUT is not warranted. Issue#11: Whether transitional credit pertains to duties and taxes paid under the existing laws can be treated as part of Net ITC ? Refund of unutilized input tax credit is allowed in two scenarios mentioned in sub-section (3) of section 54 of the CGST Act. These two scenarios are zero rated supplies made without payment of tax and inverted tax structure. In sub-rule (4) and (5) of rule 89 of the CGST Rules, the amount of refund under these scenarios is to be calculated using the formulae given in the said sub-rules. The formulae use

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been clarified that the zero rated supply of goods is effected under the provisions of the GST laws. An exporter, at the time of supply of goods declares that the goods are for export and the same is done under an invoice issued under rule 46 of the CGST Rules. The value recorded in the GST invoice should normally be the transaction value as determined under section 15 of the CGST Act read with the rules made thereunder. The same transaction value should normally be recorded in the corresponding shipping bill / bill of export. During the processing of the refund claim, the value of the goods declared in the GST invoice and the value in the corresponding shipping bill / bill of export should be examined and the lower of the two values should be sanctioned as refund. Issue#13: Whether refund of taxes paid under existing laws allowed through FORM GST RFD-01A? Sub-sections (3), (4) and (5) of section 142 of the CGST Act provide that refunds of tax/duty paid under the existing law shall be

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provides that the amount of refund arising out of such claims shall be refunded in cash. Further, the first proviso to the said sub-section provides that where any claim for refund of CENVAT credit is fully or partially rejected, the amount so rejected shall lapse and therefore, will not be transitioned into GST. Furthermore, it should be ensured that no refund of the amount of CENVAT credit is granted in case the said amount has been transitioned under GST. The field formations are advised to process such refund applications accordingly. Issue#14: What is the filing frequency of refund applications? Section 2(107) of the CGST Act defines the term tax period as the period for which the return is required to be furnished. The terms Net ITC and turnover of zero rated supply of goods/services are used in the context of the relevant period in rule 89(4) of CGST Rules. The phrase relevant period has been defined in the said sub-rule as the period for which the claim has been filed . In many

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at the realization of convertible foreign exchange is one of the conditions for export of services. In case of export of goods, realization of consideration is not a pre-condition. In rule 89 (2) of the CGST Rules, a statement containing the number and date of invoices and the relevant Bank Realisation Certificates (BRC) or Foreign Inward Remittance Certificates (FIRC) is required in case of export of services whereas, in case of export of goods, a statement containing the number and date of shipping bills or bills of export and the number and the date of the relevant export invoices is required to be submitted along with the claim for refund. It is therefore clarified that insistence on proof of realization of export proceeds for processing of refund claims related to export of goods has not been envisaged in the law and should not be insisted upon. Issue#16: Whether benefit of supplies merchant exporters at concessional rate is mandatory? Notification No. 40/2017 – Central Tax (Rate)

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the exporter of such goods can export the goods only under LUT / bond and cannot export on payment of integrated tax. In this connection, Notification No. 3/2018-Central Tax, dated 23.01.2018 may be referred. Issue#17: What is the requirement of invoices for processing of claims for refund? (For processing of refund claims, copies of invoices and other additional information are being insisted upon by many field formations.) Clarification: As per para 14 of the Circular No. 37/11/2018 – GST, dated 15.03.2018, it has been clarified that only the specified statements would be required for processing of refund claims because the details of outward supplies and inward supplies would be available on the common portal which would be matched. Most of the other information like shipping bills details etc. would also be available because of the linkage of the common portal with the Customs system. However, because of delays in operationalizing the requisite modules on the common portal, in many

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of IGST paid on export of services) Copy of FORM RFD-01A filed on common portal Copy of Statement 2 of FORM RFD-01A Invoices w.r.t. input, input services and capital goods BRC/FIRC for export of services Undertaking / Declaration in FORM RFD-01A Export (goods or services) without payment of tax (Refund of accumulated ITC of IGST / CGST / SGST / UTGST / Cess) Copy of FORM RFD-01A filed on common portal Copy of Statement 3A of FORM RFD-01A generated on common portal Copy of Statement 3 of FORM RFD-01A Invoices w.r.t. input and input services BRC/FIRC for export of services Undertaking / Declaration in FORM RFD-01A Issue#18: From which date, these instruction will be applicable? Clarification: As per para 15 of the Circular No. 37/11/2018 – GST, dated 15.03.2018, it has been clarified that these instructions shall apply to exports made on or after 1st July, 2017. It is also advised that refunds may not be withheld due to minor procedural lapses or non-substantive errors or omission. – Rep

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2018 (10) TMI 304 – AUTHORITY FOR ADVANCE RULING – UTTAR PRADESH – 2018 (17) G. S. T. L. 58 (A. A. R. – GST) – Jurisdiction of AAR – Issuance of Tax Invoice – issuance of single invoice for every truck unlike the situation Prior to GST regime, where it was practice to receive single invoice for the entire month, and daily challan accompanied with each truck.
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Ruling:- The responsibility to issue Tax Invoice related to Supply of Taxable Goods is with the Registered person who supplies the goods – in this case the suppliers are registered with Jharkhand and Chattisgarh states – the Jurisdiction to decide the issue with the authority is limited to the state of Uttar Pradesh.
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As the registered persons are outside the territorial limits of State of Uttar Pradesh, the present application is outside the scope of Jurisdiction – the present Advance Ruling application is dismissed as not maintainable. – Order No. 3 Dated:- 4-5-2018 – Shri Sanjay Kumar Pathak, Member (State Tax) and

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ach consignment/ truck, Accordingly HIL Renukoot, is receiving (Stock transfer) said consignment along with GST invoices. The above transaction amount to more than 15000 Nos. of GST invoices to be recorded per month in our Oracle accounting system, which slow down our computer system and attract minor mistake while making GRN for said receipts on each invoices. It also create mismatch of invoices in GSTR-2 of HIL Renukoot and GSTR-1 of Mines division. Prior to GST regime, we had practice to receive single invoice for the entire month, and daily challan accompanied with each truck. Bauxite is the main Raw material for Aluminium production. 2. Definitions. – In this Act, unless the context otherwise requires,- (63) "inward supply" in relation to a person, shall mean receipt of goods or services or both whether by purchase, acquisition or any other means, with or without consideration; (83) "outward supply" in relation to a taxable person, means supply of goods or serv

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ny goods or services or both, shall mean the person supplying the said goods or services or both and shall include an agent acting as such on behalf of such supplier in relation to the goods or services or both supplied; 31. Tax invoice. – (1) A registered person supplying taxable goods shall, before or at the time of,- (a) removal of goods for supply to the recipient, there the supply involves movement of goods ; or (b) delivery of goods or making available thereof to the recipient, in any other case, issue a tax invoice showing the description, quantity and value of goods, the tax charged thereon and such other particulars as may be prescribed : Provided that the Government may, on the recommendations of the Council, by notification, specify the categories of goods or supplies in respect of which a tax invoice shall be issued, within such time and in such manner as may be prescribed. – Case laws – Decisions – Judgements – Orders – Tax Management India – taxmanagementindia – taxmana

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2018 (7) TMI 1262 – AUTHORITY FOR ADVANCE RULINGS HARYANA – TMI – Classification of goods – Power Bank – Whether the product power bank which is used to charge portable devices can be classified under heading 8504 attracting GST rate of 18%? – Held that:- The comments of the concerned officer were sought under section 98 (1) of the Act ibid, but before the applicant could be provided a personal hearing, the applicant has withdrawn their application vide their application received today i.e. and requested to drop the verification and examination of the said application – application dismissed as withdrawn. – HAR/HAAR/R/2017-18/9 Dated:- 4-5-2018 – Viiaj Kumar Singh. (Member) (In Application No.: 9, dated 23.02.2018) Viiaj Kumar Singh. (Mem

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r the product power bank which is used to charge portable devices can be classified under heading 8504 – having description Electrical Transformers, Static converters (For Example, Rectifiers) And Inductors attracting GST rate of 18% (CGST 9%, SGST 9% or IGST 18%) as mentioned under Serial No. 375 of Schedule-III, on Page No. 53, of Notification No 1/2017-Central tax (Rate) dated 28.06.2017 as amended vide notification no. 41/2017-Central Tax (Rate) dated 14th November, 2017. The comments of the concerned officer were sought under section 98 (1) of the Act ibid, but before the applicant could be provided a personal hearing, the applicant has withdrawn their application vide their application received today i.e. and requested to drop the ver

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GST – States – 38/1/2017-Fin(R&C)(57) – Dated:- 4-5-2018 – GOVERNMENT OF GOA Department of Finance Revenue & Control Division ___ Notification 38/1/2017-Fin(R&C)(57) In exercise of the powers conferred by section 164 of the Goa Goods and Services Tax Act, 2017 (Goa Act 4 of 2018), the Government of Goa hereby makes the following rules further to amend the Goa Goods and Services Tax Rules, 2017, namely:- (1) These rules may be called the Goa Goods and Services Tax (Fourth Amendment) Rules, 2018. (2) Save as otherwise provided, they shall be deemed to have come into force from the 18th day of April, 2018. 2. In the Goa Goods and Services Tax Rules, 2017,- (i) 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 supply of goods and services) x Net ITC ÷ Adjusted

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he 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 Central 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 year; (b) the Committee shall meet at such time and place as the Chairman, or in his absence, the Vice-Chairman of the Committee may deem fit; (c) the meeting of the Committee shall be presided over by the Chairman, or in his absence

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claimed to be for the welfare of consumers are stated to be carried on, to a duly authorised officer of the State 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 lumpsum 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; (h) to reject an application placed before it on account of factual inconsistency, or inaccuracy in material particulars; (i) to recommend minimum financial assistance, by way of grant to an applicant, having regard to his financial status, and importance and utility of the nature of activity

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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 Central Government or State Government; (ii) regulatory authorities or autonomous bodies constituted under an Act of Parliament or the Legislature of a State or Union Territory; (iii) any agency or organization engaged in consumer welfare activities for a minimum period of three years, registered under the Companies Act, 2013 (18 of 2013) or under any other law for the time being in force; (iv) village or mandal or samiti or samiti level co-operatives of consumers especially Women, Scheduled Castes and Scheduled Tribes; (v) an educational or resea

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; (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 (68 of 1986), and includes consumer of goods on which central tax has been paid; (f) Fund means the Consumer Welfare Fund established by the State Government under section 57 of the State Goods and Services Tax Act, 2017 (Goa Act 4 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 refundable; (iii) in FORM GST ITC-03, after entry 5 (e), for the instruction against ** , the following shall be substituted, namely:- ** The value of capital goods shall be the invoice value reduced by 1/60th per month or part thereof from the date of invoice (iv) after FORM GSTR-8, the following FORM shall be inserted, namely:- FORM GSTR-10 (See rule 81) Final Return 1 GSTIN 2 Legal name 3 Trade Name, if any 4 Address

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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) Sr.No. Description ITC reversible/Tax payable Tax paid along with application for cancellation of registration (GST REG-16) Balance tax payable (3-4) Amount paid through debit to electronic cash ledger Amount paid through debit to electronic credit ledger Central Tax State/Union territory Tax Integrated Tax Cess 1 2 3 4 5 6 7 8 9 10 1 Central Tax 2 State/Union territory Tax 3 Integrated Tax 4 Cess 10. Interest, late fee payable and paid Description Amount payable Amount Paid 1 2 3 (I) Interest on account of (a) Integrated Tax (b) Central Tax (c) State/Union territory Tax (d) Cess (II) Late fee (a) Central Tax (b) State/Union territory tax 11. Verification I hereby solemnly affirm and declare that the information given hereinabove is true and

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i-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 1/60th per month or part thereof from the date of invoice/purchase taking useful life as five years. 4. The details furnished in accordance with sub-rule (3) of rule 44 in the Table at Sl. No. 8 [against entry 8 (d)] shall be duly certified by a practicing chartered accountant or cost accountant. Copy of the certificate shall be uploaded while filing the details. ; (v) for FORM GST DRC-07, the following shall be substituted, namely:- FORM GST DRC-07 [See rule 142(5)] Summary of the order 1. Details of order- (a) Order No. (b) Order date (c) Tax period- 2. Issues involved -<< drop down>> classification, valuation, rate of tax, suppression of turnover, excess ITC claimed, excess refund released

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2018 (6) TMI 431 – AUTHORITY FOR ADVANCE RULINGS, UTTARAKHAND – 2018 (14) G. S. T. L. 306 (A. A. R. – GST), [2018] 59 G S.T.R. 69 (AAR) – Levy of IGST – Reverse charge mechanism – ocean freight in case of CIF basis contract – Credit of GST on various assets – Whether under Reverse Charge Mechanism, IGST should be paid by the importer on ocean freight in case of CIF basis contract, when service provider and service recipient both are outside the territory of India? – Held that:- Vide N/N. 8/2017- Integrated Tax (Rate) dated 28.6.2017 and N/N. 10/2017- Integrated Tax' (Rate) dated 28.6.2017 an importer is required to pay IGST on the ocean freight. Therefore as on date, even if the importer has already paid IGST on CIF value imported goods, he is still required to pay IGST on ocean fright.
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What will be the supporting document for importer under RCM to take the credit of IGST paid on ocean freight under CIF basis contract? – Held that:- Credit of IGST paid can be taken on the basis

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Section 97 of the CGST Act and the rules made thereunder filed by Bahl Paper Mills Ltd., 5 KM Stone, Aliganj Road, Kashipur, Uttrakhand seeking an advance ruling on the question: (a) Whether under Reverse Charge Mechanism, IGST should be paid by the importer on ocean freight in case of CIF basis contract, when service provider and service recipient both are outside the territory of India. (b) If point no. answer is yes, then what will be the supporting document for ' importer under RCM to take the credit of IGST paid on ocean freight under CIF basis contract. (c) Whether credit will be available in GST of office fixtures 8s furniture, A.C. plant 8s sanitary fittings 'on' newly constructed building on its own account, for furtherance of business and accounting entry is capitalized in books of account. 2. Advance Ruling under GST means a decision provided by the authority or the appellate authority to an applicant, on matters or on questions specified in sub section (2) of se

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rms of said Section 97(2) of CGST/SGST Act, 2017, the present application is hereby admitted. 5. Accordingly opportunity of personal hearing was granted to the applicant on 2.4.2018. Shri Nitin Adlakha, C.A. appeared for personal hearing and made submissions in this regard. For A.C. Plant and furniture 85 fixtures he stated that all these goods are received by them after implementation of GST. This is not with respect of transitional provisions. 6. In the present application, applicant has requested for advance ruling on the questions mentioned at 1(a), 1(b) and 1(c) above which are discussed as under : (a) Whether under Reverse Charge Mechanism, IGST should be paid by the importer on ocean freight in case of CIF basis contract, when service provider and service recipient both are outside the territory of India : In this regard it is observed that vide notification no. 8/2017- Integrated Tax (Rate) dated 28.6.2017 and notification no. 10/2017- Integrated Tax' (Rate) dated 28.6.2017

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herance of business and accounting entry is capitalized in books of account As per explanation to the Section 17 of CGST Act, 2017 credit is not available in respect of land, building or any other civil structure……. Therefore, in view of the aforesaid provisions of law, Cenvat Credit of GST paid in relation with building or any other civil structure is not available and since sanitary fittings are integral part of building or any other civil structure, cenvat credit of GST paid on such sanitary fittings is not available. However, credit of GST is available on office fixtures 85 furniture, A.C. plant. To further strengthen the view, the authority rely on the CBIC Board Circular No. 943/04/2011-CX dated 29th April 2011 wherein it was clarified that the goods such as furniture and stationery used in an office within the factory are goods used in the factory and are used in relation to the manufacturing business and hence the credit of the same is allowed. Further the Hon'ble CESTA

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2018 (5) TMI 1328 – KERALA HIGH COURT – TMI – Validity of recovery proceedings – pending stay applications – Held that: – the petitioner can be given some respite from the rigor of recovery, at least until such time as his stay petition is considered by the Appellate Tribunal.
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The Kerala Value Added Tax Appellate Tribunal directed to take up, consider and pass orders on Exts.P4, P4(a), P4(b), P4(c) and P4(d) stay petitions preferred by the petitioner, within a period of one month from the date of receipt of a copy of this judgment. Until such time as the Appellate Tribunal passes an order on the stay petition, and communicates the same to the petitioner, all steps for recovery pursuant to Ext.P5 demand notice for recovery of amounts

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fore the Tribunal. The grievance of the petitioner is that even though their appeals namely, Exts.P3 to P3(d) and the applications for stay, copies of which has been produced as Exts.P4, P4(a), P4(b), P4(c) and P4(d), are pending before the Appellate Tribunal, steps have been taken for recovery of the assessed tax from him through Ext.P5 demand notice. The petitioner prays that the recovery against them be interdicted, at least until such time as the stay petition is considered by the Appellate Tribunal. 2. The learned Government Pleader appearing on behalf of the respondents submits that, it is true that the petitioner has preferred appeals before the Appellate Tribunal, but she says that since the amount involved is substantial, no order

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h time as the Appellate Tribunal passes an order on the stay petition, and communicates the same to the petitioner, all steps for recovery pursuant to Ext.P5 demand notice for recovery of amounts against the petitioner, assessed through Exts.P1, P1(a), P1(b), P1(c) and P1(d) assessment orders, shall be kept in abeyance. To facilitate an expeditious disposal of the stay petition, I direct the petitioner to place a certified copy of this judgment, along with a copy of this writ petition, before the Appellate Tribunal, and the time-frame granted in this judgment will begin from the date on which the copy of the judgment and the writ petition are placed before the Tribunal. – Case laws – Decisions – Judgements – Orders – Tax Management India

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2018 (5) TMI 1236 – CESTAT NEW DELHI – TMI – Voluntary Compliance Entitlement Scheme (VCES) – time limitation – proceedings rejecting VCES application barred by limitation of time – Held that: – the CBEC vide circular dated 8.8.2013 has mandated that the show cause notice shall be given within 30 days of the date of filing of the said declaration or date of said circular whichever is later – In this case, admittedly, the show cause notice was handed over by the Service Tax department to the postal authorities on 9.9.2013 for delivery to the appellant. Thus, it is evident that the show cause notice has not been issued within 30 days from the date of issuance of the circular by CBEC.
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Proceedings initiated by the department for rejection of the VCES declaration cannot be sustained on the ground of limitation alone – appeal allowed – decided in favor of appellant. – Appeal No. ST/50515/2018-SM – A/51679/2018-SM[BR] – Dated:- 4-5-2018 – Mr. S.K. Mohanty, Member (Judicial) Shri M.K. G

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the adjudication order. Thus, feeling aggrieved with the impugned order, the appellant has filed this appeal before the Tribunal. 2. The ld. Advocate appearing for the appellant submitted that the show cause notice dated 6.9.2013 issued to the appellant is barred by limitation of time, in view of the Circular No. 170/5/2013-ST dated 8.8.2013 read with Circular No. 17589/2013 dated 25.11.2013 issued by the CBEC. He further submitted that rejection of declaration by the authorities below is not proper and justified, in view of the said circular inasmuch as the notice for rejection of VCES declaration has to be issued within 30 days from the date of filing of the same. He has relied on the decision of this Tribunal in the case of M/s Siddhi Vinayaka Enterprises Pvt. Lted. Vs. CST, Raipur – 2016 (43) STR 474 (Tri.-Del.) and M/s V.S. Enterprises Vs. CCE, Nagpur – 2017 (52) STR 151 (Tri.-Mumbai), to state that the show cause notice issued beyond 30 days from the date of circular issued by CB

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er. In this case, admittedly, the show cause notice was handed over by the Service Tax department to the postal authorities on 9.9.2013 for delivery to the appellant. Thus, it is evident that the show cause notice has not been issued within 30 days from the date of issuance of the circular by CBEC. Therefore, proceedings initiated by the department for rejection of the VCES declaration cannot be sustained on the ground of limitation alone. I find that in the decision relied on by the appellant, the juridical forums have held that time limit prescribed for issuance of the show cause notice has to be strictly adhered to and in absence of observance of fulfilment of such condition, the proceedings cannot be initiated, seeking rejection of the declaration by the appellant. 6. Therefore, I do not find any merits in the impugned order. Accordingly, after setting aside the same, I allow the appeal in favour of the appellant. (Pronounced in Court on 4.5.2018) – Case laws – Decisions – Judgem

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2018 (5) TMI 811 – KERALA HIGH COURT – TMI – Stay on recovery – grievance of the petitioner is that even though his appeals and applications for condonation of delay are pending before the 2nd respondent, steps have been taken for recovery of the assessed tax from him through various demand notices – Held that: – Taking note of similar orders passed by this Court in analoguous situations, the petitioner can be given some respite from the rigor of recovery, at least until such time as his applications for condonation of delay are disposed of – until orders are passed on pending appeals, all steps for recovery pursuant to various demand notices for recovery of amounts against the petitioner, shall be kept in abeyance. – W.P. (C) No. 15132 of

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ications for condonation of delay, copies of which have been produced as P4, P4 (a), P4 (b) and P4 (c) are pending before the 2nd respondent, steps have been taken for recovery of the assessed tax from him through various demand notices. The petitioner prays that the recovery against him be interdicted, at least until such time as the stay petitions are disposed of. 2. The learned Government Pleader appearing on behalf of the respondents submits that, it is true that the petitioner has preferred appeals before the 2nd respondent, but he says that since the amount involved is substantial, no order of stay may be granted, except on terms. 3. I have considered the submissions made by the learned counsel for the petitioner as well as the learne

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expeditiously as possible but not later than one month thereafter. Until such time as the 2nd respondent passes orders on the applications for condonation of delay and if it is allowed, until orders are passed on the stay petitions and communicates the same to the petitioner, all steps for recovery pursuant to various demand notices for recovery of amounts against the petitioner, shall be kept in abeyance. 6. To facilitate an expeditious disposal of the applications and appeals, I direct the petitioner to place a certified copy of this judgment, along with a copy of this writ petition, before the 2nd respondent, and the time-frame granted in this judgment will begin from the date on which the copy of the judgment and the writ petition are p

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2018 (5) TMI 760 – NATIONAL ANTI-PROFITEERING AUTHORITY – 2018 (13) G. S. T. L. 412 (N. A. P. A.) – Benefit of reduction in the rate of tax – India Gate Basmati Rice – ITC benefit – Anti-Profiteering proceedings – Held that: – it is revealed that the “India Gate Basmati Rice” sold by the Respondent was not liable for tax before the implementation of the GST and after coming into force of the CGST Act, 2017 it was levied GST @ 5% w.e.f. 22.09.2017.
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The ITC claimed by the Respondent was not sufficient to meet his output tax liability and he had to pay the balance amount of tax in cash as is evident from the perusal of the table prepared by the DGSG. It is also apparent from the returns filed by the respondent for the months of September, 2017, October, 2017 and November, 2017 that the ITC available to him as a percentage of the total value of taxable supplies was between 2.69% to 3% whereas the GST on the outward supply of his product was 5% which was not sufficient to discharge h

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s Maximum Retail Price (MRP) had been increased, and hence margin of profit had also been increased by the above Respondent. He had also attached images of the details printed on the 10 Kg. package of India Gate Basmati Rice (Mini Mogra) packed in the months of August, 2017 and October, 2017 showing the printed price of ₹ 540/- & ₹ 585/-respectively. 2. The above application was examined by the Standing Committee on Anti-Profiteering on 13.12.2017 and forwarded to the Director General Safeguards (DGSG) for detailed investigation on 18.12.2017. 3. The DGSG had issued notice to the above Respondent and after examining the record had reported that in this case the tax rate on the packed Basmati Rice carrying registered brand name of India Gate Basmati Rice had been increased from Nil to 5% after the implementation of the GST w.e.f. 01.07.2017, due to which input tax credit (ITC) had become available to the above Respondent. He had also reported that whether the benefit of

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varied between 2.69% to 3% however, as the GST rate on taxable outward supply was 5%, the ITC available was insufficient to discharge the GST liability and thus, the balance amount of GST had been paid in cash during the above period and since the ITC available was less than the GST liability on the outward supplies, there was no net benefit of ITC which could had been passed on to the consumers and therefore there was no violation of the provisions of section 171 of above Act. He had also given details of the calculation of the ITC which was available to the above Respondent as has been shown in the table given below: Month Total Taxable Value (Rs.) Total output tax liability (Rs.) ITC available (Rs.) ITC ratio to Taxable Value (%) GST Paid (Rs.) ITC Cash Sept., 2017 141581342 7142238 4246216 3 4795786 2346452 Oct., 2017 515995458 25828553 13869583 2.69 13869584 11958969 Nov., 2017 770088225 39052815 22514290 2.92 22514290 16538525 Total 1427665025 72023606 40630089 2.85 41179660 308

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contended that the price of paddy had increased by more than 30% in the year 2017 as compared to the year 2016 which constituted 75% of total cost of production, however, because of stiff competition in the market they had not passed on the total cost burden to the consumers and had increased the price of their product by 8% only from ₹ 540/- to ₹ 584/- in spite of increase in the raw material costs by more than 30%. They had further contended that the average price of paddy was ₹ 260/- per 10 Kg. in the year 2016 while it was ₹ 330/- per Kg. in the year 2017 due to which there was increase in the MRP and no other factor had influenced the price of their product. They had also produced the copies of the invoices of paddy purchases in their support. They had also submitted the following table to support their case:- Particulars per 10 Kg. 01.06.17 01.07.17 17.07.17 01.09.17 26.09.17 04.10.17 02.04.18 Pre GST MRP Post GST MRP Before Tax Incidence on Branded Rice A

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oduct was 5% which was not sufficient to discharge his tax liability. Moreover in this case the rate of tax has been increased from 0% to 5% instead of reduction in the same. Therefore, there appears to be no reason for treating the price fixed by the Respondent as violation of the provisions of the Anti-Profiteering clause. 7. It is also revealed from the perusal of the tax invoices submitted by the Respondent that there was an increase in the purchase price of paddy in the year 2017 as compared to its price during the year 2016 which constitutes major part of the cost of the above product. It is further revealed from the record that the Respondent had increased the MRP of his product from ₹ 540/- to ₹ 585/- which constituted increase of 8.33% keeping in view the increase in the purchase price. Therefore, due to the imposition of the GST on the above product as well as the increase in the purchase price of the paddy there does not appear to be denial of benefit of ITC as h

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2018 (5) TMI 698 – ALLAHABAD HIGH COURT – TMI – Seizure of goods with vehicle – Section 129(1) of the U.P. GST Act, 2017 – Held that: – we have no reason, prima facie, to disbelieve that the Assistant Commissioner had sufficient reasons at the time of inception to pass the impugned orders – petition dismissed. – MISC. BENCH No. – 12713 of 2018 Dated:- 4-5-2018 – Hon'ble Shabihul Hasnain And Hon'ble Rajan Roy, JJ. For the Petitioner : Pradeeo Agrawal For the Respondent : C.S.C. ORDER Heard Shri Pradeep Agarwal, learned counsel for the petitioner as well as learned Standing Counsel for the State. The petitioner has prayed for a writ of certiorari for quashing the seizure under Section 129(1) of the U.P. GST Act, 2017 of the goods tr

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