Goods and Services Tax

GST Not Exempt on Supplies to Ocean-Going Vessels, Naval, and Coast Guard Ships in Inter-State Trade.
Case-Laws
GST
Supply of goods – inter-state trade – The applicant are not exempted from t

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GST Charge on Post-CGST Act Lift Installation Deemed Valid; Applicant's Anti-Profiteering Claim Rejected.
Case-Laws
GST
Anti-Profiteering – in respect of the two invoices dated 27-07-2017 as the installation of the second lift had been completed after coming in to force of the CGST Act, 2017, he was liable to be charged GST at the rate which was prevalent on 27-07-2017 – There is no substance in the claim made by the Applicant.
TMI Updates – Highlights, quick notes, marquee, annotat

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GST on reimbursement of air tickets
Query (Issue) Started By: – Rajesh Kumar Dated:- 15-6-2018 Last Reply Date:- 25-6-2018 Goods and Services Tax – GST
Got 6 Replies
GST
One of our consultant/director is submitting his air tickets for reimbursement with GST, air tickets already attract GST. is it correct?
Reply By VaibhavKumar Jain:
The Reply:
Dear Rajesh,
a. In case of consultant, say your consultant to issue tax invoice (as technical service) with ticket value plus GST @ 18%. This is because, your consultant is eligible for GST credit on air ticket. Based on tax invoice, you are also eligible for ITC charged by consultant.
b. In case of director, reverse charge is applicable. Hence, if your director purchased the ticket,

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NAA RULING ON SUPPLY OF LIFT : NO ANTI-PROFITEERING CHARGE PROVED
By: – Dr. Sanjiv Agarwal
Goods and Services Tax – GST
Dated:- 15-6-2018

Undue anti-profiteering being resorted to by businesses and trade in GST regime are yet to be proved by the customers or victimized complainants and so also affirmed by and action taken against them by the National Anti-profiteering Authority (NAA) in India. The third order of NAA on the complaint M/s Abel Space Solution LLP, New Delhi against M/s Schindler India Pvt. Ltd. Mumbai has been pronounced in favour of supplier. Thus all three NAA order pronounced so far have gone in favour of supplier of goods or services / companies and against the complainants.
The NAA order have so far been in favour of companies, viz,
Order No.
Date of Order
Complaint Against
Business Activity
1.
27.03.2018
Vrandavaneshwree Automotive Pvt. Ltd, Bareilly [ 2018 (4) TMI 1377 – THE NATIONAL ANTI-PROFITEERING AUTHORITY ]
Car Dealer
2.
04.05.201

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fore the NAA order, the complainant had requested for withdrawal of application, citing inadequate understanding of GST provisions at the time of filing the complaint in September, 2017. But the authority considered the investigative report of the Directorate General of Safeguard (DGS) before ordering the dismissal of complaint.
The NAA ruled that in respect of the two invoices dated July 27, 2017, as the installation of the second lift had been completed after coming into force of the CGST Act, 2017, he was liable to be charged GST at the rate prevalent on July 27, 2017.
Case Facts
Case No.
4/2018
Complainant
Abel Space Solution LLP, New Delhi
Supplier of Goods
Schindler India Pvt. Ltd., Mumbai
Date of Application
20.09.2017
Date of forwarding to DGSG by Standing Committee
15.02.2018
Report of DGSG
16.04.2018
Date of Institution of case
17.04.2018
Date of NAA order
31.05.2018
Order
By 3 Members Bench (including Chairman, NAA)
In the instant case two lifts were ord

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e provisions of Finance Act, 1994.
According to factual matrix, applicant filed the application under Rule 123 of the CGST Rules, 2017 to the Standing Committee alleging that company had not charged GST on the base price of the lift ordered by him from the company, after excluding the pre-GST Excise Duty on the material component and thus he had been charged tax twice on the same material. This was referred by the Standing Committee to DGSG for further investigations.
The complaint had subsequently withdrawn his complaint vide letter dated 28.03.2018 sent to DGSG and he also did not availed the opportunity of being heard before NAA. The reason cited for withdrawal was that he was not fully aware of the provisions of the CGST Act, 2017 when he had filed his application on 20.09.2017 and since the issues pertaining to case had been further clarified subsequently, his application should be treated to have been withdrawn.
According to law, the supply and installation of lift amounted to

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the point of taxation was to be construed as the date of receipt of such advance. The installation of elevator was completed in the GST regime, and hence the point for levy of tax for supply of material fell under the GST regime and accordingly, two more invoices were issued on 27.07.2017 wherein the applicable GST was correctly charged.
The company claimed that the Excise Duty benefit could only be given if the material was dispatched on or after 01.07.2017 and since all the material was delivered before 30.06.2017 and hence, he was not in a position to pass such benefit to the Applicant.
The NAA, therefore, finally ordered that there is no substance in the claim made by the applicant and therefore, the Authority accepted the report dated 16-04-2017 filed by the DGSG under Rule 129 (6) of the CGST Rules, 2017. The proceedings were dropped as no violation of the provisions of Section 171 of the CGST Act, 2017 has been established.
It is understood that NAA has under its sleeve over

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In Re: M/s. Sanghvi Movers Limited
GST
2018 (10) TMI 1242 – AUTHORITY FOR ADVANCE RULING, MAHARASHTRA – 2018 (18) G. S. T. L. 340 (A. A. R. – GST)
AUTHORITY FOR ADVANCE RULING, MAHARASHTRA – AAR
Dated:- 15-6-2018
GST-ARA-43/2017-18/B-50
GST
SHRI B.V. BORHADE, AND SHRI PANKAJ KUMAR, MEMBER
PROCEEDINGS
Under section 98 of the Central Goods and Services Tax Act, 2017 and the Maharashtra Goods and Services Tax Act, 2017)
The present application has been filed under section 97 of the Central Goods and Services Tax Act, 2017 and the Maharashtra Goods and Services Tax Act, 2017 [hereinafter referred to as “the CGST Act and MGST Act”] by Sanghvi Movers Limited, the applicant, seeking an advance ruling in respect of the following questions on:
1. Based on the facts and business model adopted by Sanghvi Movers Limited (“SMV or “Applicant” or “the Company”) under the GST regime as discussed below in detail, whether movement of tyre mounted cranes or crawler cranes from o

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to “supply” as per clarification issued by the CREC vide Circular No. 21/ 21/ 2017 – CGST read with Circular No. 1/1/2017 – IGST?
4. If the transaction stated above in question 1 is liable to tax, whether GST would be payable Only on the movement of tyre-mounted cranes being goods on wheels or GST would also be payable on movement of both types of cranes (i.e. tyre-mounted cranes and crawler cranes)?
5. What should be the value under section 15 of the Central Goods and Services Tax Act, 2017 (CGST Act) and the rules made thereunder for discharging applicable GST on movement of cranes from one GST registered office to another registered office in case the said movement is considered to be a taxable supply?
6. At the outset, we would like to make it clear that the provisions of both the CGST Act and the MGST Act are the same except for certain provisions. Therefore, unless a mention is specifically made to such dissimilar provisions, a reference to the CGST Act would also mean a refe

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tc., whenever a crane is given on rent. SML has a large fleet of more than 400 cranes ranging from 40 MT to 800 MT lifting capacity. All cranes have been imported from various countries such as USA, Germany, Japan, Singapore, China, etc.
3. SML owns two types of cranes, viz.
i) Crawler cranes (they are fitted with crawler tracks/ chain belts, as seen on military tanks). These cranes cannot be plied on normal roads, and therefore, do not require any registration from the Regional Transport Office (RTO).
ii) Tyre-mounted hydraulic cranes ply on the road and require RTO registration.
4. The cost of these cranes is significantly high and their average economic life ranges from 25 to 35 years. These cranes are moved/ transported on trailers, from one location to another, in knock down condition.
5. As the movement of cranes involves significant time and cost, SML has set up various branches (“SML branch offices”) across India at strategic locations to minimize transportation time and c

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ted in different States are treated as distinct person and any supply of taxable goods/ services between distinct persons with or without consideration, is subject to applicable GST. Thus, under GST, Inter-State branch transactions involving services have been brought under the ambit of tax. As a result, SML had to relook at its existing business model and the way it undertakes transactions both internally and externally with customers.
9. In order to comply with the provisions of GST law and ensure operational feasibility, SML has modified its business model. SML Maharashtra has entered into a formal service arrangement with all SML branch offices by entering into a Memorandum of Understanding (MOU), Wherein SML Maharashtra has agreed to provide cranes and crane components to all SML branch offices on hire charges. As part of the service arrangement, whenever SML branch offices receive a final work order from their customers for providing cranes on hire charges, the said SML branch o

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m respective SMI„ branch offices, SML Maharashtra transports the crane and its components to the customer's location/ project location on the instructions of SML branch offices.
14. For brevity and clarity of facts, an illustration of the transaction flow involved is provided below.
15. For each type of crane given on hire charges, the crane operator maintains a separate monthly log sheet at the customer/ project location, wherein the daily and hourly details of crane usage and idle time are maintained, based on which the monthly service invoice is raised by SML branch offices on respective customers. Further, an invoice from SML Maharashtra is issued to the SML branch office and the value considered for levying GST is approximately 95% of the value charged to the customer by the SML branch, following the principle under Rule 28 of the Central Goods and Services Tax Rules, 2017 (“CGST Rules”) read with section 15 of CGST Act.
16. In most cases, cranes are moved from one GS

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etween all the SML branches documenting service arrangement and consideration for such services. Accordingly, SML Maharashtra and SML branch offices have agreed to formally enter into a service agreement through an MOU, whereby SML Maharashtra shall provide different types of cranes and crane components to all SML branch offices on hire charges as per the requirement of each SML branch office.
19. The ownership and title of cranes and crane components shall vest with SML Maharashtra, However, as and when any SMK, branch offices receive the final work order from their customers for supply of crane on hire charges, the said crane shall be provided by SML Maharashtra to SML branch offices for further sub-hiring purpose.
Method of invoicing- As per the monthly log sheet, SML branch offices raise invoices on their respective customers and on the basis of the same, SML Maharashtra in turn raises taxable invoice on the respective SML branch offices.
Valuation adoptedSML Maharashtra recover

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ther, as per Rule 37 of the CGST Rules, 2017, in case of supplies made between distinct persons as specified under section 25(4) of the CGST Act, it shall be deemed that the payment has been made and no input tax credit reversal is required to be made for non-payment of consideration. Hence, the recipient SML branch offices can avail credit of IGST charged by SML Maharashtra on the value of hire charges charged on the invoice.
Clarification issued under Circular NO. 21/ 21/ 2017-CGST read with Circular No. 1/1/2017-IGST
23. The GST Council in its 23rd meeting held on 10 November, 2017 clarified that inter-State movement of goods like rigs, tools, spares and goods on wheels like cranes, not being in the course of furtherance of supply of such goods, does not constitute supply. This clarification was issued to give major compliance relief to industry, as there are frequent inter-State movement of such kind in the course of providing services to customers or for the purposes of getting

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eration shall be liable to tax and applicable GST is required to be paid on the value of such transactions.
26. In the leasing industry, capital goods such as cranes are generally moved from one state to another between various branch offices of the same legal entity for providing the said capital goods on hire or for undertaking repairs and maintenance work. However, as a result of the afore stated provisions under the GST, each and every movement of such capital goods between distinct persons was subject to tax i.e., the movement of goods between inter-State branch offices was being subjected to tax, thereby, causing undue hardship and compliance burden to the leasing industry.
27. Hence, to provide consequential relief to the leasing industry in general, the Central Government vide the aforesaid Circular has clarified that only such movement of goods that would be further supplied by way of sale, transfer, barter, exchange, license, rental, lease or disposal made or agreed to be m

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ny”) under the GST regime as discussed below in detail, whether movement of tyre mounted cranes or crawler cranes from one GST registered office of SML to another registered office of SML for further supply on hire charges to -customers would be treated as '”taxable supply” under GST law or whether GST would not be leviable on the said movement as per the clarification issued by the CBEC vide Circular No. 21/21/2017-CGST read with Circular No. – IGST?
Answer: – As per section 24(1) (i) of the CGST act, persons making any inter-state taxable supply shall be compulsorily required to be registered under the CGST Act. As per section of the CGST Act, supply includes all forms of supply of goods or services or both such as sale, transfer, barter, exchange, license, rental, lease or disposal made or agreed to be made for a consideration by person in the course or furtherance of business. per section 25(4) Of the CGST Act, a person who has obtained or is required to obtain more than One r

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rders from unrelated customers, such movement shall be treated as separate supply of service provided by SML Maharashtra to SML branch offices.
As per my opinion, the movement of cranes from one GST registered office to another branch office of M/s Sanghvi Movers Ltd for further supply on hire charges to customers is treated as “taxable supply” under GST.
Qu. 2. In the present situation and under the given facts, if GST is payable on the aforesaid transaction, whether the recipient office of SML duly registered under GST receiving such cranes for further supply on hire charges would be eligible to avail input tax credit of GST charged?
Answer: – As per section 16(2) of the CGST Act, a registered person shall be entitled to avail credit of any input tax in respect of any supply of goods or services or both to him subject to fulfilment of the following conditions:
a. Possession of tax invoice or debit note issued by registered supplier; and
b. Receipt of goods or services; and
c. T

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?
Answer:- As per Circular No. 21/21/2017- CGST read with Circular No. 1/1/2017-IGST , inter-state movement of goods on wheels such as cranes between distinct person as specified in section 25(4) of the CGST Act, is not leviable to IGST if the cranes are moved for internal use for carrying any goods, or for repairs and maintenance, etc., except in cases where such movement is for further supply of the said cranes on hire charges.
Further, the registered branch office proving the upkeepment and maintenance service, charges consideration for the same from SML Maharashtra and levies applicable GST on the same. Thus, as the activity of upkeepment and maintenance is already taxed by SML branch offices, the movement of cranes from One registered branch office to another for undertaking repairs and maintenance activity should not be liable to tax under GST, as it would result in double taxation of a single transaction.
As the cranes are moved from one GST registered office to another for u

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t, 2017 (CGST Act) and the rules made thereunder for discharging applicable GST on movement of cranes from one GST registered office to another registered office in case the said movement is considered to be a taxable supply?
Answer :- Section 15- The value of a supply of goods or service or both shall be the transaction value, which is the price actually paid or payable for the said supply Of goods or service or both where the supplier and the recipient are not related and the price is the sole consideration for the supply.
The value of supply include- any taxes, duties, cases, fees and charges levied under any law for the time.
As per my opinion, in such a case of supply of Goods and services between deemed district persons, the value of goods or services determined as open market value,
04. HEARING
The case was taken up for preliminary hearing on DT. 10.04.2018, with respect to admission or rejection of the application when Sh. Nitin Vijaivergia, C.A. along with Sh. Vipin Bang

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1ZX with effect from July 2017. SML is engaged in the business of providing medium-sized heavy-duty cranes on rental/ lease/hire basis to its clients without transferring the right to use the cranes. SML has pan-India presence and cranes are deployed across India as per the requirements of customers. Its head office ('SML HO Maharashtra') is located in Pune, Maharashtra. SML operated these cranes on wet lease basis (own operate and maintain) and provides the entire operation crew, such as crane operators, riggers, helpers, mechanicals, engineers, etc., whenever a crane is given on rent. SML owns two types of cranes namely crawler cranes and Tyre-mounted hydraulic cranes.
Applicant has stated in details about the goods involved in this transaction but what is significant for present purpose is to understand the business model. As per the model as reproduced in vertabum above applicants Branch offices at different locations negotiate with the customer for supply of cranes on hire ch

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work order the SML HO transports the crane and its components to the customer's location/ project location on the instruction of SML branch office. This type of transaction constitute core business of the applicant. However, in some cases, the crane is moved from one registered branch office to another registered branch office for temporary unkeepment and maintenance purpose. In any case, however, the ownership and title to the crane vests with HO.
Whenever crane moves from SML HO to SML branch office for further supply on hire, the invoice is issued by SML HO to SML branch office and the value considered For levying GST is approximately 95% of the value charged to customer by the branch. Whereas when crane move from one registered location to another registered location for upkeepment and maintenance activity the respective branch office providing such services levies charges on H.O. along with applicable rate of GST.
ON this factual matrix we have been called upon to answer the

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s of supply of goods or services or both such as sale, transfer, barter, exchange, license, rental, lease or disposal made or agreed to be made for a consideration by a person in the course or furtherance of business;
(b) import of services for a consideration whether or not in the course or furtherance of business;
(c) the activities specified in Schedule l, made or agreed to be made without a consideration; and
(d) the activities to be treated as supply of goods or supply of services as referred to in Schedule II.
(2) Notwithstanding anything contained in sub-section (1),-
(a) activities or transactions specified in Schedule III; or
(b) such activities or transactions undertaken by the Central Government, a State Government or any local authority in which they are engaged as public authorities, as may be notified by the Government on the recommendations of the Council,
shell be treated neither as a supply of goods nor a supply of services.
(3) Subject to the provisions o

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ent of full consideration as agreed, is a supply of goods.
2. Land and Building
(a) any lease, tenancy, easement, licence to occupy land is a supply of services;
(b) any lease or letting out of the building including a commercial, industrial or residential complex for business or commerce, either wholly or partly, is a supply of services.
3. Treatment or process
Any treatment or process which is applied to another person's goods is a supply of services.
4. Transfer of business assets
(a) where goods forming part of the assets of a business are transferred or disposed of by or under the directions of the person carrying on the business so as no longer to form part of those assets, whether or not for a consideration, such transfer or disposal is a supply of goods by the person;
(b) where, by or under the direction of a person carrying on a business, goods held or used for the purposes of the business are put to any private use or are used, or made available to any person

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equired, by the competent authority or after its first occupation, whichever is earlier.
Explanation.-For the purposes of this clause-
(1) the expression “competent authority” means the Government or any authority authorised to issue completion certificate under any law for the time being in force and in case of non-requirement of such certificate from such authority, from any of the following, namely:-
(i) an architect registered with the Council of Architecture constituted under the Architects Act, 1972; (20 of 1972.) or
(ii) a chartered engineer registered with the Institution of Engineers (India); or
(iii) a licensed surveyor of the respective local body of the city or town or village or development or planning authority;
(2) the expression “construction” includes additions, alterations, replacements or remodelling of any existing civil structure;
(c) temporary transfer or permitting the use or enjoyment of any intellectual property right;
(d) development, design, p

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ion or body of persons to a member thereof for cash, deferred payment or other valuable consideration.
From the co-joint reading of section 7 and schedule – II applicant's activity of providing crane on hire is nothing but transfer of right in cranes without the transfer of title thereof and is therefore a is supply of services.
The next issue raised by the applicant for our consideration is under claim that all the branches located in different state are of single legal person and as such the movement of crane for supply on hire from HO in Maharashtra to branch office in another state would not be leviable to under the GST as per the clarification issued by CBEC vide circular No. 21/21/2017-GST r/w Circular No. 01/01/2017.
As per general understanding, the HO and branches of one legal entity have no separate existence. However as per section25 (4) of the GST where a person who has obtained or is required to obtain more than one registration, each such registration is treated as

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n 7 of the GST Act.
Further we find that this supply is not exempt from tax under the GST Act and hence is a taxable supply.
In this case, undisputedly the supply is between two different taxable territory meaning thereby between two states and as per section 7 (3) the of IGST Act, the supply is in the course of interstate trade or commerce. And as per section 5 (1) of the IGST Act said interstate supply is taxable under the provisions of the IGST in the hand of the applicant. Therefore, we conclude that in the present case supply of cranes, cranes components and trailers on lease/ hire charges by the SML HO to SML branches in TN and other state constitute interstate taxable supply of service between two distinct person and liable to pay tax under the provisions of IGST Act.
Further we find that the issue of IGST exemption on interstate movement of various modes of conveyance between two distinct person as specified in Section 25(4) of the GST Act, 2017 for carrying goods or passeng

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may be, is leviable on repairs and maintenance done for such goods.
It appears from the first circular 1/1/2017-IGST that it is applicable to interstate movement of various modes of conveyance, carrying goods or passenger or for repairs and maintenance of such conveyance. By second circular 21/21/2017-GST, the benefit of the first circular was extended to rigs, tools and spares, and all goods on wheel. [like crane]
In view of these two circulars we have to ascertain whether the clarification is applicable to the facts of the case i.e. cranes supplied/provided by the applicant namely crawler cranes (they are fitted with crawler tracks/chain belts, as seen on military tanks) and Tyre mounted hydraulic cranes that ply on road. Applicant's case is covered by second circular and as per this circular what is exempted is all goods on wheel [like crane]. As regards Tyre mounted crane there shall be no doubt as said crane are on wheel. The issue before us is whether the crawler crane is

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'all goods on wheel [like crane] mentioned in the second circular as both types of cranes – Tyre mounted cranes and crawler cranes are used to perform same kind of work i.e. mechanical direction job.
As per the said circular interstate movement of cranes except in cases where movement of such good is for further supply of same goods, shall be treated 'neither supply of goods or supply of service. The reliance by the applicant on this circular to claim interstate movement of cranes as exempt from levy of IGST is misplaced as the cranes moves form SML HO Maharashtra to SML branch in another state for further supply of same cranes. For above deliberation we conclude that IGST would be leviable on the interstate movement of both type of cranes from SML HO to SML branch offices registered in another state for further supply on hire charges to customer and thus the circular 21/21/2017-IGST is not applicable to the facts of the present transaction.
Que: 2 In the present situation a

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2017 – CGST read with Circular No. 1/1/ 2017 – IGST?
At the outset with regard to this question we consider only that interstate movement of tyre mounted crane or crawler crane wherein the crane is moved from registered office of SML in the state of Maharashtra to another registered office of SML in other state and the movement iss solely for the purpose of upkeepment and maintenance purpose and not for further supply of the crane on hire charges. We find that the situation as mentioned above is squarely covered by the clarification issued by Tax Research Unit vide circular no. 21/21/2017- GST DT. 22nd November, 2017. As such the interstate movement of cranes is neither a supply of goods nor supply of services and consequently no IGST would be applicable on such movement. However, tax is leviable on repairs and maintenance done for such goods.
Que: 4 If the transaction stated above in question 1 is liable to tax, whether GST would be payable only on the movement of tyre-mounted crane

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Section 25(4) and Schedule I of the GST Act. As per section 25(4) of the GST Act, as mentioned above, the SML HO and SML Branches are distinct persons for the purpose of this Act and as per schedule-I supply even if made without any consideration between two distinct persons as specified in section 25(4) is also supply when made in the course or furtherance of business.
Applicant has explained the method of invoicing in his submissions. As per the method SML branch office on the basis of monthly log sheet raise invoices on their respective customer and on the basis of same, SML Maharashtra that is applicant in turn raises taxable invoice on the respective SML branch offices. SML Maharashtra recovers hire charges equivalent to 95% of hire charges recovered by SML branch offices from their respective customers. Applicant discharges GST as applicable on the said 95% value. On this factual matrix we have been called upon to answer the impugned question. As per section 15 of the GST Act,

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f section 25 or where the supplier and recipient are related, other than where the supply is made through an agent, shall-
(a) be the open market value of such supply;
(b) if the open market value is not available, be the value of supply of goods or services of like kind and quality;
(c) if the value is not determinable under clause (a) or (b), be the value as determined by the application of rule 30 or rule 31, in that order:
Provided that where the goods are intended for further supply as such by the recipient, the value shall, at the option of the supplier, be an amount equivalent to ninety percent of the price charged for the supply of goods of like kind and quality by the recipient to his customer not being a related person:
Provided further that where the recipient is eligible for full input tax credit, the value declared in the invoice shall be deemed to be the open market value of the goods or services.
In the present transaction of supply we find that value consider

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ion 98 of the Central Goods and Services Tax Act, 2017 and the Maharashtra Goods and Services Tax Act, 2017)
NO.GST-ARA-43/2017-18/B-50
Mumbai, dt. 15/06/2018
For reasons as discussed in the body of the order, the question is answered thus
Question 1. Based on the facts and business model adopted by Sanghvi Movers Limited (“SML” or “Applicant” or “the Company') under the GST regime as discussed below in detail, whether movement of tyre mounted cranes or crawler cranes from one GST registered office of SML to another registered office of SML for further supply on hire charges to customers would be treated as “taxable supply” under GST law or whether GST would not be leviable on the said movement as per the clarification issued by the CBEC vide Circular No. 21/ 21/ 2017- CGST read with Circular No. 1/ 1/ 2017 – IGST?
Answer: – Answered in Affirmative, Further circular No.2i/21/2017- IGST which exempts from tax interstate movement of rigs, tools, spares, and al! goods on wheels [

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as “taxable supply” under the GST law or can it be said that it would not tantamount to “supply” as per clarification issued by the CBEC vide Circular No. 21/ 21/ 2017- CGST read with Circular No. i/ i/ 2017 – IGST?
Answer: – Answered in the negative. The impugned movement as per circular 21/21/2017-GST would be neither as a supply of goods nor supply of service. However, taxis leviable on repairs and maintenance done for such goods.
Question 4. If the transaction stated above in question 1 is liable to tax, whether GST would be payable only on the movement of lyre-mounted cranes being goods on wheels or GST would also be payable on movement of both types of cranes (i.e. tyre-mounted cranes and crawler cranes)?
Answer: – GST would be payable on the movement of both type of cranes i.e. tyre mounted cranes and crawler cranes.
Question 5. What should be the value under section 15 of the Central Goods and Services Tax Act, 2017 (CGST Äct) and the rules made thereunder for dischar

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IN RE : RAMWAY FOODS LTD.
GST
2018 (10) TMI 343 – AUTHORITY FOR ADVANCE RULING – UTTAR PRADESH – 2018 (17) G. S. T. L. 39 (A. A. R. – GST)
AUTHORITY FOR ADVANCE RULING – UTTAR PRADESH – AAR
Dated:- 15-6-2018
Order No. 12
GST
Shri Sanjay Kumar Pathak, Member (State Tax) and Dinesh Kumar, Member (Central Tax)
ORDER
M/s. Ramway Foods Ltd. Village-Bhartari, PO-Niranjan Kot, Bhankari, Delhi G.T. Road, Aligarh, Utter Pradesh-202001 (hereinafter called the applicant) is a registered assessee under GST having GSTN : 09AACV0483H1Z8.
2.  The applicant, in their application dated 20-4-2018, raised the following question to be determined by the authority for Advance Ruling.
“Whether the classification of Sacks and bags of

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whole of the GST vide Notification No. 27/2017-Central Tax (Rate), dated 2-9-2017.
5.  The applicant was granted a personal hearing on 14-6-2018. Shri Raj Kumar, CA and Shri Pradeep Singhal, Director appeared. In the written submission, the applicant has submitted that –
The above said application has been filed by them because of misclassification of P.P. Sackes and Bags (Supplier of the goods) made of woven fabrics under HSN 3923 21 00 and 3923 29 10 of GST Tariff charging GST @ 18%. Consequently, it increases the cost of their products namely Maida and Sooji as exempted from GST due to ineligibility to take credit of the inputs i.e. Sackes and Bags.
6.  As per Section 95(a) of CGST / SGST Act, 2017 Advance Ruling is defined

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In Re: Shandong Heavy Industry India Pvt. Ltd.
GST
2018 (9) TMI 1035 – AUTHORITY FOR ADVANCE RULING, MAHARASHTRA – 2018 (17) G. S. T. L. 631 (A. A. R. – GST)
AUTHORITY FOR ADVANCE RULING, MAHARASHTRA – AAR
Dated:- 15-6-2018
GST-ARA-44/2017-18/B-51
GST
SHRI B.V. BORHADE, AND SHRI PANKAJ KUMAR, MEMBER
PROCEEDINGS
(under section 98 of the Central Goods and Services Tax Act, 2017 and the Maharashtra Goods and Services Tax Act, 2017)
The present application has been filed under section 97 of the Central Goods and Services Tax Act, 2017 and the Maharashtra Goods and Services Tax Act, 2017 [hereinafter referred to as “the CGST Act and MGST Act”] by Shandong Heavy Industry India Pvt. Ltd, the applicant, seeking an advance ruling in respect of the following questions.
A. Whether the classification of Marine Diesel Engine falling under TSH 8408 of Customs Tariff Act, 1975 as adopted to GST attracting of IGST (14% CGST + 14% SGST) as per Schedule IV (Sr. No. 115) of Noti

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MGST Act. Further to the earlier, henceforth for the purposes of this Advance Ruling, a reference to such a similar provision under the CGST Act / MGST Act would be mentioned as being under the “GST Act”.
02. FACTS AND CONTENTION – AS PER THE APPLICANT
The submission (Brief facts of the case), as reproduced verbatim, could be seen thus –
Description of Activity in which the Advance Ruling is sought
a. The applicant is engaged in assembly and testing of Marine Diesel Engines and making supply to various dealers and shipyard manufacturers falling under TSH 8408.
b. The applicant is also engaged in Importing Marine Diesel Engines (TSH 8408) for making supply as such to various dealers and shipyard manufacturers and engaged in importing parts required for assembly and testing of Marine Diesel Engine (TSH 8409) for making further supplies as well as for consumption assembly of Marine Diesel Engine as mentioned in (a) (supra).
c. The applicant is also engaged in Import of Gear Box

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ngine by using various imported parts and import the diesel engine as such (The copy of process flow diagram of Marine Diesel Engines and the copies Of Commercial Invoice issued by M/s. Shandong Weichai import and Export Corporation, Shandong, China to the applicant along with BOE are enclosed herewith and marked as Annexure – C and Annexure – D respectively).
4. The supply of Gear boxes is made by importing the same and never assembled by the applicant in India (The copies Of Commercial Invoice issued by M/s. Shandong Weichai import and Export Corporation, Shandong, China to the applicant along with BOE are enclosed herewith and marked as Annexure – E).
5. The applicant made supplies of marine engines and the gear boxes (Hereinafter referred as 'said goods') to two types of customers i.e. dealers who supply the said goods to the sailors who further use the said goods in fishing vessels, ships, boat or trawlers and the shipyard manufacturers engaged in manufacturing of various vessel

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the marine engine to describe the engine number, net weight, rated speed max power and the date of manufacture of the said engine etc. likewise, the exporter while exporting the 'gear box' to India, is supposed to affix the name/ number plate of gear box with its specifications (The photographs of the said name/number plates of marine engine assembled by the applicant and gear box imported by them are enclosed and marked as Annexure – U)
9. The marine engines as described in Annexure – A and the marine gear box as described in Annexure – B are falling under following 4 digits of Customs Tariff Act, 1975 as adopted by GST.
Chapter/Heading/Sub-heading Tariff item
Description of goods
8408 (Annexure – A)
Compression-ignition internal combustion piston engines (diesel or semi-diesel engines)
8409
Parts suitable for use soleley or principally all with the engines of heading 8407 or 8408
8483 (Annexure – B)
Transmission Shafts (Including cam shafts and crank shafts) and cranks; bea

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r principally with the engines of heading 8407 or 8408
14%
28%
IV
135
8483
Transmission Shafts (Including cam shafts and crank shafts) and cranks; bearing housings and plain shaft bearings; gears and gearing; ball or roller screws; gear boxes and other speed changers, including torque converters; flywheels and pulleys, including pulley blocks; clutches and shaft couplings (including universal joints)
14%
28%
11. As per the Annexures F to H enclosed with this application and as narrated in Para Nos. 5 to 8 (Supra), the applicant supply the marine engines and gear boxes, the end – use of which is in fishing vessels, boats, trawlers etc, The classifications of these vessels etc. are falling under following 4 digits of Customs Tariff Act, 1975 as adopted by GST.
Chapter/Heading/Sub-heading Tariff item
Description of goods
8901
Cruise-ships, excursion boats, ferry-boats, cargo-ships, barges and similar vessels for the transport of persons or goods
8902
Fishing vessels; factor

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le
Sr.No.
Chapter/Heading Sub-heading/Tariff item
Description of goods
CGST/SGST Rate
IGST Rate
I
246
8901
Cruise-ships, excursion boats, ferry-boats, cargo-ships, barges and similar vessels for the transport of persons or goods
2.5%
5%
I
247
8902
Fishing vessels; factory ships and other vessels for processing or preserving fishery products
2.5%
5%
I
248
8904
Tugs and pusher crafts
2.5%
5%
I
249
8905
Light-vessels, fire-floats, dredgers, floating cranes and other vessels the navigability of which is subsidiary to their main function; floating docks; floating or submersible drilling or production platforms
2.5%
5%
I
250
8906
Other vessels, including warships and lifeboats Other than rowing boats
2.5%
5%
I
251
8907
Other floating structures (for example, rafts, tanks, coffer-dams, landing-stages, buoys and beacons)
2.5%
5%
13. The applicant rightly stated in Para No. 11 (Supra) that the marine engine and the gear boxes supplied by them end – use

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has never supplied the goods under Sr. No. 252 by charging 5% IGST or 2.5% CGST and SGST each.
16. The applicant by this application of advance ruling would like to know the correct interpretation and applicability of Sr. No. 252 (Schedule I) vis-a-vis Sr. Nos. 115, 116 and 135 (Schedule IV), reference Para 10 above in the light of different rates of CGST+SGS applicable to TSH 8408, 8409 and 8483 of Customs Tariff Act, 1975 as adopted for GST.
Statement of applicants interpretation of law in respect of question raised in Sr. No. 14 i.e. questions on which Advance Ruling is sought.
Brief note regarding prior to GST regime
a. The applicant is engaged in assembling of Marine Diesel Engine prior to 01.07.2017 also, however, never claimed General Exemptions of Central Excise Tariff Act, 1985 which read as under
Sr.No.
Chapter or heading
Description
Rate
Condition
305A
89 or any other chapter
Capital goods and spares thereof, raw materials, parts, material handling equipment an

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ner.
Explanation. – “Ocean going vessels” includes-
(a) liners; cargo-vessel of various kinds including refrigerator vessels for the transport of meat, fruit or the like, vessels specified for the transport of particular goods (grain, coal, ores or the like); tankers (petrol, wine or the like); yachts and other sailing vessels; cable ships; ice-breakers; floating factories of all kinds (for processing whales, preserving fish or the like) whale catchers; trawlers and other fishing vessels; life boats, scientific research vessels; weather ships; vessels for the transportation or mooring of buoys; pilot-boats; hopper barges for the disposal of dredged material or the like;
(b) war Ships of all kinds including submarines;
(c) tugs, dredgers, fire- floats and salvage ships; and
(d) oil rigs, drilling ships and jack-up rigs
553
8902,890400 00 or 890590
All goods (Excluding vessels and other floating structures as imported for breaking up for)
NIL
Same as above
C.. The applicant wa

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related to the applicant are reproduced below:-
Schedule I
Sr.No.
Chapter/Heading
Description of goods
Rate of GST (CGST+SGST)
246
8901
Cruise ships, excursion boats, ferry-boats, cargo ships, barges and similar vessels for the transport of persons or goods
5%
247
8902
Fishing vessels; factory ships and other vessels for processing or preserving fishery products
5%
248
8904
Tugs and pusher craft
5%
249
8905
Light-vessels, fire-floats, dredgers, floating cranes and other vessels the navigability of which is subsidiary to their main function; floating docks; floating or submersible drilling or production platforms
5%
250
8906
Other vessels, including warships and lifeboats other than rowing boats
5%
251
8907
Other floating structures (for example, rafts, tanks, coffer-dams, landing-stages, buoys and beacons)
5%
252
Any Chapter
Parts of goods of headings 8901, 8902, 8904, 8905, 8906, 8907
5%
Schedule IV
Sr.No.
Chapter/Heading
Description of goo

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dated 28.06.2017.
3. The Applicant in Point No. 15, particularly Para Nos. 1 and 6 to 8, specifically stated that the Diesel Engine and gear Boxes assembled/ imported by the applicant are used exclusively for Marine purposes i.e. for Fishing vessels, Ships, boats, trawlers etc. The applicant also enclosed various Annexures particularly, Annexure A and Annexure F to H to establish the end use of the goods falling under TSH 8408, 8409 and 8483 of Central Excise Tariff Act, 1985 as adopted to GST in the goods falling under TSH 8902, 8904, 8905, 8906, and 8907 (Sr. Nos. 246 to 251 of Schedule I).
4. The applicant, till date, has not supplied Marine Diesel Engines, Gear Boxes falling under TSH 8408, 8409 and 8483 under Sr. No. 252 of Schedule I. The applicant, till date, has made all the supplies after 01.07.2017 by charging 28% IGST (14% CGST + 14% SGST) as per Sr. No. 115, 116 and 135 of Schedule IV of Notification No. 01/2017 – C. T. (Rate) dated 28.06.2017. (Refer Para 10 above).
03

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Tariff Code No.
Rate of duty (Excise)
Customs
Exemption if any
Assembly Marine Diesel Engines
8408
12.5%
10%/7.5%
Nil
Import Marine Diesel Engines/Parts
8408/8409
12.5%
10%
Nil
Import Gear Box
8483
12.5%
10%
Nil
3. The details of the classification and rate of duty under GST on the above mentioned goods are as under:
Name of the goods/ description
Tariff Code No.
Rate of duty (Excise)
Customs
Exemption if any
Assembly Marine Diesel Engines
8408
14% + 14%
28%
Nil
Import Marine Diesel Engines/Parts
8408/8409
14% + 14%
28%
Nil
Import Gear Box
8483
14% + 14%
28%
Nil
4. The taxpayer in his application dated 20-03-2018 to the Advance Ruling Authority stated that, they are supplying the marine Engines and gear boxes, the end use which is in fishing vessels , boats, trawlers, etc. & stated that the classifications of these vessels etc are falling under Customs Tariff Act, 1975 Chapter 89, as adopted by GST.
Chapter/Heading/Sub-heading/Tariff

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is also issued to specify IGST rate Schedules. The Schedules applicable to the above-mentioned goods and attracting tax rate is as follows:
Schedule No.
Sr. No.
Chapter/Heading/Sub-heading/Tariff item
Description of goods
CGST/SGST Rate
IGST Rate
I
246
8901
Cruise-ships, excursion boats, ferry-boats, cargo-ships, barges and similar vessels for the transport of persons or goods
2.5%
5%
I
247
8902
Fishing vessels; factory ships and other vessels for processing or preserving fisher products
2.5%
5%
I
248
8904
Tugs and pusher crafts
2.5%
5%
I
249
8905
Light-vessels, fire-floats, dredgers, floating cranes and other vessels the navigability of which is subsidiary to their main function; floating docks; floating or submersible drilling or production platforms
2.5%
5%
I
250
8906
Other vessels, including warships and lifeboats other than rowing boats
2.5%
5%
I
251
8907
Other floating structures (for example, rafts, tanks, coffer-dams, landing-stages, buo

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harging of 5% IGST or 2.5% CGSI' and SGST each and also did not take any benefit of exemption before GST,
7. The taxpayer has raised questions on the following points:
D. Whether the classification of Marine Diesel Engine falling under TSH 8408 of Customs Tariff Act, 1975 as adopted to GST attracting 28% of IGST (14% CGST + 14% SGST) as per Schedule IV (Sr. No. 115) of Notification No. 01/2017 – Central GST (Rate) dated is correct or not?
E. Whether the classification of Gear Box falling under TSH 8483 of Customs Tariff Act, 1975 as adopted to GST attracting 28% of IGST (14% CGST + 14% SGST) as per Schedule IV (Sr. No. 135) of Notification No. 01/2017 – Central (GST (Rate) dated 28.06.2017 is correct or not?
F. Whether the goods falling under TSH 8408, 8409 and 8483 of Customs Tariff Act, 1975 as adopted to GST can be treated as 'parts of heading of 8902, 8904, 8905, 8906 and 8907' attracting 5% of IGST (2.5% CGST+ 2.5% SGST) as per Schedule I (Sr. No. 252) of Notification No. 0

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sification of the parts/spares of MARINE GEAR BOX is found in CHAPTER HEADING NO. 8483 of the schedule of the tariff which is “gear boxes and other speed changers” Gear boxes of all kinds are classifiable under this heading only. Chapter 89 attracts classification of “SHIPS, BOATS AND FLOATING STRUCTURES which is a specific description and does not attract gear boxes to be classified under this chapter.
Schedule I and Schedule IV of the NOTIFICATION NO. 1/2017-Central GST (Rate), dated 28-06-2017: while schedule I attracts Central GST @ 2.5 per cent and schedule IV attracts Central GST @14 per cent. As a result, rate difference of 11.5 per cent (14% – 2.5%).
10. It is seen that Chapter 89 is about the classification of Ships/Boats/Floating Structures and Chapter 84 is about Machinery & Mechanical Appliances.
The chapter note no. 7 to chapter 84 of GST Tariff Act, 2017 is reproduced below:
7. A machine which is used for more than one purpose is, for the purposes of classification, t

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ods put up in sets for retail sale, which cannot be classified by reference to 3(a), shall be classified as if consisted of the material or component which gives them their essential character, insofar as this criterion is applicable,
(c) When goods cannot be classified by reference to 3(a) or 3(b), they shall be classified under the heading which occurs last in numerical order among those which equally merit consideration.
Explanation: Rule 3(a) states that where 2 or more Headings seem to apply, the one which provides the most specific description of the product in question should be used. This means that a Heading which names the actual product should be used in preference to one only names a category to which the product could belong. Similarly, a Heading that describes the whole product, should be used in preference to one which describes part of it. However, where two Headings both only describe part of the product, this rule cannot be used to tell which one to use even if on

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acter cannot be determined. In this case, the product should be classified under the Heading which occurs last in numerical order.
Example: A gift set which includes socks (Heading number 6115) and ties (Heading number 6177) cannot be classified by previous rule since neither item gives the gift set its essential character. The gift set must be classified under the Heading number for ties which is the Heading that occurs last in numerical order.
12.1t may be noted that a Gear Box is a device basically designed for changing speed, irrespective of to which device it is coupled/ attached. The gear box will either increase the speed or decrease the speed depending upon desired output needed. Normally gearbox is independent of machine to which it is attached Gear box can be attached to IC engines, machines, etc. That doesn't mean they become parts of vehicles or machines. Therefore, it is wrong to say that gear box falls under chapter 89. This should be rightly classifiable under chapte

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cifically classified under chapter 84834000 of GST Tariff cannot be classified as parts of Goods falling chapter 89. Similarly Diesel Engine bearing General description Marine Diesel Engine is specifically classified under Chapter 840810.
Therefore such Engines cannot be classified as parts of Goods falling under Chapter 89.
04. HEARING
The case was taken up for preliminary hearing on dt. 11.04.2018, with respect to admission or rejection of the application when Sh. Vidhyadhar S. Apte, Advocate along with Sh. Denvendra S. Athawale and Mr. Suresh Kumar , Sr. Manager, Service appeared and requested for admission of application as per their contentions made in ARA. The jurisdictional officer, Sh. Mahesh Hombali Dy. Commissioner CGST Division II, Pimpri, Pune along with Sh. Bhakte, Supdt. appeared and made written submissions.
The application was admitted and during the Final Hearing on Sh. Vidhyadhar S. Apte, Advocate along with Mr. Suresh Kumar, Sr. Manager, Service, appeared and ma

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rs and shipyard manufacturers. MDEs are also imported by them and supplied as such to various dealers and shipyard manufacturers. They are also importing parts (falling under TSH 8409), required for assembly and testing of MDEs, and for further supplies as such.
Diesel engines are known as compression ignition internal combustion piston engines. Diesel Engine are classified under CTH 8408 and are mainly differentiated as Marine Propulsion Engines, Engines of a kind used for the propulsion of vehicles of Chapter 87 and the third as Other Engines. They can further be classified on the basis of operations viz. 2-stroke, 4-stroke, single acting, double acting and finally, on the basis of Cylinder arrangement namely, horizontal, vertical, radial, etc. DMEs are those engines which are used in marine vehicles namely ships, submarines, etc. Both 2-stroke as well as 4-stroke engines are used in the marine industry. The engines used for the main propulsion or turning the propellers of the norma

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f. Under Sr. No. 115 of Schedule IV of Notification No. 1/2017 – Central Tax (Rate) dated 28th June 2017, the tax rate for MDEs is 14% each of CGST and SGST.
Now we take up the second question raised by the applicant which is as follows:-
(2)Whether the classification of Gear Box falling under TSH 8483 of Customs Tariff Act, 1975 as adopted to GST attracting 28% of IGST (14% CGST + 14% SGS as per Schedule IV (Sr. No. 135) of Notification No. 01/2017- Central GST (Rate) dated 28.06.2017 is correct or not?
The applicant has submitted that they are also engaged in Import of Gear Box falling under TSH 8483 and making supply of the same as such to various dealers and shipyard manufacturers. We find that Tariff Heading 8483 covers goods as under:-
Chapter/Heading/Sub- heading Tariff item
Description Of goods
8483
Transmission Shafts (Including cam shafts and crank shafts) and cranks; bearing housings and plain shaft bearings; gears and gearing; ball or roller screws; gear boxes and ot

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(2.5% CGST+ 2.5% SGST) as per Schedule I (Sr. No. 252) of Notification No. 01/2017 – Central GST (Rate) dated 28.06.2017 or not?
we find that Sr.No. 252 of Notification No. 01/2017 – Central GST (Rate) dated 28.06.2017 which is as follows:-
Schedule No.
Sr. No.
Chapter/Heading/Sub-heading/ Tariff item
Description of goods
CGST/SGST Rate
IGST Rate
I
252
Any Chapter
Parts of goods of headings 8901, 8902, 8904, 8905, 8906, 8907
2.5%
5%
From a reading of the same it is very clear that parts of goods of headings 8901, 8902, 8904, 8905, 8906, 8907 are chargeable to CGST and SGST @ of 2.5% each. We now reproduce the description of headings 8901, 8902, 8904, 8905, 8906 and 8907 as under:-
Chapter/Heading/Sub-heading/Tariff item
Description of goods
8901
Cruise-ships, excursion boats, ferry-boats, cargo-ships, barges and similar vessels for the transport of persons or goods
8902
Fishing vessels; factory ships and other vessels for processing or preserving fishery products

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Tariff Act, 1975 as adopted by GST, namely, 8901, 8902, 8904, 8905, 8906 and 8907.
We find, from a general reading of Sr. No. 252 of Notification No. 01/2017-Central Tax (Rate) dated 28.06.2017, that goods falling under any chapter of the GST Tariff, if used as parts of goods falling under headings 8901, 8902, 8904, 8905, 8906 and 8907,then such goods would attract CGST and SGST each.
We find that the applicant has stated in their submissions that the marine engine and the gear boxes supplied by them are for end-use in the vessels, trawlers etc, classified under TSH 8901, 8902, 8904, 8905, 8906 and 8907 of the GST Tariff and therefore would attract 5% IGST (2.5% CGST and SGST each).
We find that marine engines and marine gear boxes which are claimed to be supplied by the applicant to dealers and shipyard manufacturers for use in goods falling under heading 8901, 8902, 8904, 8905, 8906 and 8907 will be deemed to be Parts of vessels falling under heading 8901, 8902, 8904, 8905, 8906 a

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follows :
ORDER
(under section 98 of the Central Goods and Services Tax Act, 2017 and the Maharashtra Goods and Services Tax Act, 2017)
NO.GST-ARA-44/2017-18/B-51
Mumbai, dt. 15/06/2018
For reasons as discussed in the body of the order, the questions are answered thus –
QA Whether the classification of Marine Diesel Engine falling under TSH 8408 of Customs Tariff Act, 1975 as adopted to GST attracting of IGST (14% CGST + SGST) as per Schedule IV (Sr. No. 115) of Notification No. 01/2017- Central Tax (Rate) dated 28.06.2017 is correct or not?
Answer:- Answered in the affirmative
Q.B. Whether the classification of Gear Box falling under TSH 8483 of Customs Tariff Act, 1975 as adopted to GST attracting 28% of IGST (14% CGST + 14% SGST) as per Schedule IV (Sr. No. 135) of Notification No. 01/2017 – Central Tax (Rate) dated 28.06.2017 is correct or not?
Answer:- Answered in the affirmative.
Q.C. Whether the goods falling under TSH 8408, 8409 and 8483 of Customs Tariff Act, 1975

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IN RE: SHRI SHAM CATERERS
GST
2018 (9) TMI 435 – AUTHORITY FOR ADVANCE RULING, MAHARASHTRA – TMI
AUTHORITY FOR ADVANCE RULING, MAHARASHTRA – AAR
Dated:- 15-6-2018
GST-ARA-42/2017-18/B-49
GST
SHRI B.V. BORHADE, AND SHRI PANKAJ KUMAR, MEMBER
PROCEEDINGS
(under section 98 of the Central Goods and Services Tax Act, 2017 and the Maharashtra Goods and Services Tax Act, 2017)
The present application has been filed under section 97 of the Central Goods and Services Tax Act, 2017 and the Maharashtra Goods and Services Tax Act, 2017 [hereinafter referred to as “the CGST Act and MGST Act”] by SHRI SHAM CATERERS , the applicant, seeking an advance ruling in respect of the following questions :
Whether the food and beverages se

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ion, stating that discussion during preliminary hearing it is evident to him that the query raised by the applicant is a settled issue under service tax which is now merged in GST. Since the issue is already settled the applicant would like to withdraw.
The request of the applicant to withdraw the application voluntarily and unconditionally is hereby allowed without going into the merits or detailed facts of this advance ruling application by this authority.
ORDER
(under section 98 of the Central Goods and Services Tax Act, 2017 and the Maharashtra Goods and Services Tax Act, 2017)
NO.GST-ARA-42/2017-18/B-49
Mumbai, dt. 15-06-2018
The Application in GST ARA form No. 01 of M/S. Shri. Sham Caterers vide reference ARA No. 42 dated 19.03.

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M/s Daurala Sugar Works Versus Commissioner of Central GST & C.E., Meerut
Central Excise
2018 (7) TMI 1775 – CESTAT ALLAHABAD – TMI
CESTAT ALLAHABAD – AT
Dated:- 15-6-2018
APPEAL No. E/70138/2018-EX[SM] – A/71114/2018-SM[BR]
Central Excise
Mr. Anil G. Shakkarwar, Member (Technical)
Shri S.C. Kamra & Shri Kartikeya Narain, Advocates for Appellant
Shri Sandeep Kumar Singh, Deputy Commissioner (AR), for Respondent
ORDER
Per: Anil G. Shakkarwar
The present appeal is arising out of Order-in-Appeal No. MRT/CX/000/APPL-MRT/199/2017-18 dated 26/10/2017 passed by Commissioner, CGST (Appeals), Meerut.
2. The brief facts leading to filing of present appeal before this Tribunal are that the Commissioner (Appeals) has passe

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learned Commissioner (Appeals) also rejected the refund on limitation. Aggrieved by the said order, appellant preferred present appeal before this Tribunal.
3. Heard the learned Counsel for appellant who have submitted that they had submitted a written submission before the learned Commissioner (Appeals) on 12.09.2017 and they contended before learned Commissioner (Appeals) in para-9 of said written submission that for the subsequent period in similar circumstances they had deposited Rs. 1,83,560/- by way of reversal of Cenvat credit during the period from March, 2014 to December, 2014 and similar show cause notice demanding Rs. 1,14,09,360/- under said Rule 6 (3) was issued to them which was dropped by the Commissioner and subsequently, t

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M/s Standard Auto Agencies Versus CGST & CE, Bhopal
Service Tax
2018 (7) TMI 1378 – CESTAT NEW DELHI – TMI
CESTAT NEW DELHI – AT
Dated:- 15-6-2018
Appeal No. ST/50422/2018-SM – A/52465/2018-SM[BR]
Service Tax
Mrs. Archana Wadhwa, Member (Judicial)
Shri Rakesh Khandelwal, C.A. – for the appellant
Shri P. Junega, DR – for the respondent
ORDER
Per Archana Wadhwa:
After hearing both the sides duly represented by Shri Rakesh Khandelwal, ld. Counsel appearing for the appellant and Shri P. Junega, ld. AR appearing for the respondent, I find that the appellant, who is engaged in providing business auxiliary services, was paying service tax on the same during the year 2012-2013 to 2014-2015. Subsequently, VAT department demanded VAT on the same by treating the same as a part of the sale price of motor vehicles. The appellant contested the payment of VAT but simultaneously filed a refund claim of service tax before the Service Tax jurisdictional Central Excise office

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applicable to service tax matter. The said section provides for time limit within which a refund claim has to be filed. The said section nowhere stipulates that time taken by the court will be excluded. In fact Section 11B(3) provides that all cases would be governed by this section which read as under:
(3) Notwithstanding anything to be contrary contained in any judgment, decree, order or direction of the Appellate Tribunal or any Court or in any other provision of this Act or the rules made thereunder or any other law for the time being in force, no refund shall be made except as provided in sub-section(2)
10 Hon'ble Supreme Court in the case of Mafatlal Industries Limited has held that all claim for refund are to be preferred and adjudicated upon under Section 11B of the Act. The Limitation Act has no applicability in the issue at hand and the same shall be governed by the section 11B of the Act. Reliance is placed on the Apex Court's decision in the case of Porcelain Electrica

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exclusive levies. If VAT is paid on anything, the same would not attract service tax. However, in the present case, it is seen that the appellants have not paid VAT on the logistic charges and it is only on the basis of a proposal by the VAT Department to levy VAT on logistic charges, they have approached the Service Tax Department for refund of the service tax.
In any case and any view of the matter, the refund claims stands filed after a period of one year from the relevant date in terms of Section 11B of the Act. As rightly observed by Commissioner (Appeals), the Apex Court's decisions, referred in the said order are fully applicable to the facts of the present case. All the refund claims are governed by the provisions of Section 11B and the time limit prescribed therein is required to be adhered to by the Revenue authorities. Tribunal being a creature of the law and working under the Act, is bound by the provisions of the Act and has no extraordinary jurisdiction to dilute the lim

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The Himachal Pradesh Goods and Services Tax (Fifth Amendment) Rules, 2018.
EXN-F(10)-5/2018-26/2018-State Tax Dated:- 15-6-2018 Himachal Pradesh SGST
GST – States
Himachal Pradesh SGST
Himachal Pradesh SGST
Government of Himachal Pradesh
Excise and Taxation Department
No. EXN-F(10)-5/2018 Dated: Shimla-171002, the 15th June, 2018
Notification No. 26/2018-State Tax
In exercise of the powers conferred by section 164 of the Himachal Pradesh Goods and Services Tax Act, 2017 (10 of 2017), the Governor of Himachal Pradesh is pleased to hereby make the following rules further to amend the Himachal Pradesh Goods and Services Tax Rules, 2017, namely:-
1. (1) These rules may be called the Himachal Pradesh Goods and Services Tax (Fifth Amendment) Rules, 2018.
(2) Save as otherwise provided, they shall come into force on the date of their publication in the Official Gazette.
2. In the Himachal Pradesh Goods and Services Tax Rules, 2017, –
(i) in rule 37, in sub-rule (1), aft

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shall mean input tax credit availed on inputs during the relevant period other than the input tax credit availed for which refund is claimed under sub-rules (4A) or (4B) or both; and
(b) Adjusted Total turnover shall have the same meaning as assigned to it in sub-rule (4).”
(iv) with effect from 01st July, 2017, in rule 95, in sub-rule (3), for clause (a), the following shall be substituted, namely:-
“(a) the inward supplies of goods or services or both were received from a registered person against a tax invoice;”;
(v) in rule 97, in sub-rule (1), after the proviso, the following proviso shall be inserted, namely:-
“Provided further that an amount equivalent to fifty per cent. of the amount of cess determined under sub-section (5) of section 54 read with section 11 of the Goods and Services Tax (Compensation to States) Act, 2017 (15 of 2017), shall be deposited in the Fund.”;
(vi) in rule 133, for sub-rule (3), the following shall be substituted, namely:-
“(3) Where the Author

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or is not identifiable;
(d) imposition of penalty as specified under the Act; and
(e) cancellation of registration under the Act.
Explanation: For the purpose of this sub-rule, the expression, “concerned State” means the State in respect of which the Authority passes an order.”;
(vii) in rule 138, in sub-rule (14), after clause (n), the following clause shall be inserted, namely:-
“(o) where empty cylinders for packing of liquefied petroleum gas are being moved for reasons other than supply.”;
(viii) in FORM GSTR-4, in the Instructions, for Sl. No. 10, the following shall be substituted, namely:-
“10. For the tax periods July, 2017 to September, 2017, October, 2017 to December, 2017, January, 2018 to March, 2018 and April, 2018 to June, 2018, serial 4A of Table 4 shall not be furnished.”;
(ix) with effect from 01st July, 2017, in FORM GST PCT-01, in PART B,
(a) against Sl. No. 4, after entry (10), the following shall be inserted, namely:-
“(11) Sales Tax practitioner und

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grated Tax
Central Tax
State Tax/Union territory Tax
1
2
3
4
5
6
7
8
9
10
11
12
13
14
“;
(b) for Statement 5B, the following Statement shall be substituted, namely:-
“Statement 5B
[see rule 89(2)(g)]
Refund Type: On account of deemed exports
(Amount in Rs)
Sl.No.
Details of invoices of outward supplies in case refund is claimed by supplier/Details of invoices of inward supplies in case refund is claimed by recipient
Tax paid
GSTIN of the supplier
No.
Date
Taxable Value
Integrated
Tax
Central
Tax
State Tax/Union Territory Tax
Cess
1
2
3
4
5
6
7
8
9
;”
(xi) in FORM GST RFD-01A, in Annexure-1,
(a) for Statement 1A, the following Statement shall be substituted, namely:-
“Statement 1A
[see rule 89(2)(h)]
Refund Type: ITC accumulated due to inverted tax structure [clause (ii) of first proviso to section 54(3)]
Sl.No.
Details of invoices of inward supplies received
Tax paid on inward supplies
Details of invoices of outward supplies issued

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M/s. Rajasthan Crane Service Versus The Union of India, The Settlement Commission Customs, Excise & Service Tax, The Commissioner of CGST & Central Excise, The Additional Commissioner of CGST & Central Excise
Service Tax
2018 (7) TMI 184 – BOMBAY HIGH COURT – 2018 (15) G. S. T. L. 317 (Bom.) , 2018 (362) E.L.T. 486 (Bom.)
BOMBAY HIGH COURT – HC
Dated:- 15-6-2018
WRIT PETITION NO.245 OF 2018
Service Tax
S. C. Dharmadhikari And Prakash D. Naik, JJ.
Mr.Prakash Shah a/w. M/s. Pooja Reddy i/b. Dubey Vinit Prabhat, Advocate for the Petitioner
Mr.Pradeep S. Jetly a/w. Mr.Jitendra B. Mishra, Advocate for the Respondents
JUDGMENT
( Per Prakash D. Naik, J. )
Rule. Rule made returnable forthwith.
2 By consent of the parties, the petition was heard for final disposal.
3 The petitioner has invoked writ jurisdiction of this Court under Article 226 of the Constitution of India and questioned the legality of the order dated 21st August, 2017, passed by the Settlement Commi

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uthority was not inclined to accept the said submission and hence the petitioner sought to take recourse to the option of settlement before the Settlement Commission.
7 The petitioner filed an application before the Settlement Commission under the provisions of Section 32E of the Central Excise Act, 1944, on 21st March, 2017. The calculation sheets as well as copies of challans evidencing payment of service tax with interest as well as invoices on which CENVAT Credit was availed, as well as copies of ST-3 Returns filed by the petitioner were enclosed along with the said application. According to the petitioner, there was an error in the amounts shown as paid in cash and through availment and utilization of CENVAT Credit in ST-3 Returns filed by the petitioner, which was brought to the notice of respondent no.3. The amounts were shown due to error. Thereafter, the petitioner received notice dated 27th March, 2017, wherein certain discrepancies were noted in the application preferred by

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r dated 14th June, 2017, enclosing the copy of the earlier letter. That was followed by letter dated 20th June, 2017, wherein the Interim Report dated 19th June, 2017, forwarded to respondent no.2 was enclosed by the Commissioner of Service Tax-VII, Mumbai. In the said Report, certain discrepancies were pointed out and also stated that the eligibility of CENVAT Credit could not be verified in the absence of CENVAT register. The petitioner forwarded reply dated 30th June, 2017, to respondent no.2 in response to the Interim Report of Jurisdictional Revenue Authority and explained all the discrepancies mentioned in the Report, and, it was also pointed out that all the documents were provided except the CENVAT Register. According to petitioner, the Interim Report was sent to respondent no.2 without providing an opportunity to the petitioner to submit any documents. Whereas, all the discrepancies mentioned in the Report were adequately explained. It is contended that despite the submissions

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o days. The letter was received on 16th June, 2017, which was a Friday and the next working day was 19th June, 2017, on which date the Interim Report was already sent to respondent no.2. It is submitted that whatever available was submitted vide letter dated 19th May, 2017. However, the petitioner were not provided with sufficient opportunity to submit relevant documents. As per the show-cause notice, all CENVAT details were available with the Department before the showcause notice was issued. The documents were sufficient for the purpose of settlement of the case and in the absence of any specific directions to produce original of the documents, the finding in the impugned order that the petitioner had violated a specific direction of respondent no.2, is not correct. He further submitted that the show-cause notice mentions that CENVAT Credit available to the petitioner were verified during investigation and the petitioner had availed CENVAT Credit on that basis. The petitioner had com

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itioner is afterthought. He submitted that the assessee was requested to file the CENVAT Register and relevant documents vide letter dated 26th May, 2017, and reminder was issued to them vide letter dated 9th June, 2017. However, the assessee did not respond to the said letters. The Service Tax liability of Rs. 1,88,23,722/- said to be paid through CENVAT Credit could not be verified in the absence of CENVAT Register. However, the availment and utilization of the said CENVAT Credit has been made by the petitioner in ST-3 Returns filed by them subsequently. Mr.Jetly, further submitted that the Bench has considered the application, relevant records and submissions advanced while rejecting the application for settlement. In the records and proceedings dated 19th May, 2017, the petitioner was specifically directed to submit all the documents of service tax payment on the basis of which CENVAT Credit is claimed and relevant records regarding availment and debit of the said CENVAT Credit to

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s made by the petitioner. The impugned order is primarily passed on the basis of the fact that there was no proper explanation from the petitioner qua his claims. They did not produce requisite documents in support of settlement inspite of requisition being sent to them. The factual aspects indicate that show-cause notice dated 19th October, 2013, was issued to the petitioner demanding service tax for the period 2008-09 to 2012-13. The petitioner's contention is that the amounts stood paid as the said fact is fortified by the documents evidencing it. The petitioner filed an application before the Settlement Commission on 21st March, 2017, by invoking Section 32E of Central Excise Act, 1944. Thereafter, there is exchange of correspondence from both the sides. They were also served with notice dated 27th March, 2017, which was replied by the petitioner stating that ST-3 Returns for the year 2008-09 were not available as they were filed by their Chartered Accountant, who is no more. T

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gned order indicates that specific direction was given to the petitioner to produce original record for verification, but, he has only supplied copies. The record of proceedings of hearing dated 19th May, 2017, does not indicate that there was any such direction to the petitioner. The petitioner contends that as per show-cause notice, all CENVAT details were available with the officers of the Department, even before the issuance of show-cause notice. There was no specific direction to produce specified documents. The petitioner's case is that show-cause notice specifically mentions that CENVAT Credits available to the petitioner were verified during the investigation and the petitioner has availed CENVAT Credit on the said basis, which fact is brought up in reply dated 30th June, 2017. The petitioner has submitted that even though all documents, as required, was provided barring CENVAT Credit Register, the request for which was only brought to the attention of the petitioner by let

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uthority, despite reminders.
13 The impugned order mentions that the Revenue Report dated 19th June, 2017 was sent to the petitioner in their counter reply and vide letter dated 30th June, 2017, the petitioner's have made certain submissions. It is stated that the Revenue was asked to submit Final Verification Report and file their comments with reference to petitioner's letter dated 30th June, 2017, but, no Report is filed by the Revenue and, thereby, the Revenue has failed to file their Final Report within the stipulated time. The Bench, has thus, proceeded on the basis of available record. Inspite of directions issued to the petitioner to submit all relevant documents of service tax on the basis of which CENVAT Credit is claimed and relevant record regarding availment and debit of said CENVAT Credit to the Jurisdictional Revenue Authority for verification within three days, the petitioner failed to submit records and it was obligatory on their part to submit original record

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y followed and on being satisfied that the petitioner therein have fulfilled all the norms prescribed for settlement, the application was directed to be proceeded with and the said decision cannot be reviewed. In the facts of that case, this Court set aside the order of settlement Commission and remanded the matter for reconsideration by the Commission. In the present case, respondent no.2 proceeded on interim report of revenue and before receipt of final report, the impugned order was passed. In pursuant to order dated 13th April, 2017, passed by Settlement Commission allowing application under Section 32E to be proceeded with, it was expected that respondent no.2 would look into all material aspects by giving sufficient opportunity to assessee to establish his claim in the application. For any inaction on the part of Revenue to submit Final Verification Report, the petitioners cannot be made to suffer. To ascertain the correct position in the matter, respondent no.2 could have grante

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Clarifications of certain issues under GST – regarding.
No.09/2018 — GST (State) Dated:- 15-6-2018 Tripura SGST
GST – States
NO.F.1-11(8)-TAX/2015/5388-94
GOVERNMENT OF TRIPURA
OFFICE OF THE CHIEF COMMISSIONER OF STATE TAX
PANDIT NEHRU COMPLEX, GURKHABASTI
AGARTALA, TRIPURA WEST, PIN-799006.
Dated, Agartala, the 15th June,2018.
Circular No.09/2018 – GST (State)
To
The Additional Commissioner of State Tax /
Assistant Commissioner of State Tax /
Superintendent of State Tax (Al

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Haryana Goods and Services Tax (Seventh Amendment) Rules, 2018.
57/GST-2 Dated:- 15-6-2018 Haryana SGST
GST – States
Haryana SGST
Haryana SGST
HARYANA GOVERNMENT
EXCISE AND TAXATION DEPARTMENT
NOTIFICATION NO.57/GST-2
DATED 15-6-2018
In exercise of the powers conferred by section 164 of the Haryana Goods and Services Tax Act, 2017 (19 of 2017), the Governor of Haryana hereby makes the following rules further to amend the Haryana Goods and Services Tax Rules, 2017, namely:-
(1) These rules may be called the Haryana Goods and Services Tax (Seventh Amendment) Rules, 2018.
(2) Save as otherwise provided, they shall come into force on the date of their publication in the Official Gazette.
2. In the Haryana Goods and Services Tax Rules, 2017 (hereinafter called the said rules), in rule 37, in sub-rule (1), after the proviso, the following proviso shall be inserted, namely:-
"Provided further that the value of supplies on account of any amount added in accordance

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on inputs during the relevant period other than the input tax credit availed for which refund is claimed under sub-rule (4A) or (4B) or both; and
(b) Adjusted Total turnover shall have the same meaning as assigned to it in sub-rule (4).".
5. In the said rules, in rule 95, in sub-rule (3), for clause (a), the following shall be substituted and shall be deemed to have been substituted with effect from the 1st July, 2017, namely:-
"(a) the inward supplies of goods or services or both were received from a registered person against a tax invoice;".
6. In the said rules, in rule 97, in sub-rule (1), after the proviso, the following proviso shall be inserted, namely:-
"Provided further that an amount equivalent to fifty per cent. of the amount of cess determined under sub-section (5) of section 54 read with section 11 of the Goods and Services Tax (Compensation to States) Act, 2017 (15 of 2017), shall be deposited in the Fund.".
7. In the said rules, in rule

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vices Tax Act, 2017, where the eligible person does not claim return of the amount or is not identifiable;
(d) imposition of penalty as specified under the Act; and
(e) cancellation of registration under the Act.
Explanation: The provisions of this sub-rule shall apply in such cases where the Authority passes the order in respect of the State.".
8. In the said rules, in rule 138, in sub-rule (14), after clause (n), the following clause shall be inserted, namely:-
"(o) where empty cylinders for packing of liquefied petroleum gas are being moved for reasons other than supply.".
9. In the said rules, in FORM GSTR-4, in the Instructions, for Serial No. 10, the following shall be substituted, namely:-
"10. For the tax periods July, 2017 to September, 2017, October, 2017 to December, 2017, January, 2018 to March, 2018 and April, 2018 to June, 2018, serial 4A of Table 4 shall not be furnished.".
10. In the said rules, in FORM GST PCT-01, in PART B,-
(a)

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proviso to
section 54(3)]
Sl . No.
Details of
invoices of
inward
supplies
received
Tax paid
on inward
supplies
Details of
invoices of
outward supplies
issued
Tax paid
on outward
supplies
GSTIN of
the
supplier
No.
Date
Taxable
Value
Integrated
Tax
Central
Tax
State Tax /
Union
territory
Tax
No.
Date
Taxable
Value
Integrated
Tax
Central Tax
State Tax
/Union
territory
Tax
1
2
3
4
5
6
7
8
9
10
11
12
13
14
";
(b) for Statement 5B, the following Statement shall be substituted, namely:-
"Statement 5B
[see rule 89(2)(g)]
Refund Type: On account of deemed exports
(Amount in Rs.)
Sl. No.
Details of invoices of outward supplies in case refund is claimed by supplier/Details of invoices of inward supplies in case refund is claimed by recipient
Tax paid
GSTIN of the supplier
No.
Date
Taxable Value
Integrated Tax
Central Tax
State Tax/Union Territory Tax
Cess
1
2
3
4
5
6
7
8
9
;&quo

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Notified to specify goods which may be disposed off by the proper officer after its seizure under section 67(8) of HGST Act,2017
58/GST-2 Dated:- 15-6-2018 Haryana SGST
GST – States
Haryana SGST
Haryana SGST
HARYANA GOVERNMENT
EXCISE AND TAXATION DEPARTMENT
Notification The 15th June, 2018
No. 58/GST-2.-In exercise of the powers conferred by sub-section (8) of section 67 of the Haryana Goods and Services Tax Act, 2017 (19 of 2017)(hereinafter referred to as the said Act), the Governor of Haryana hereby notifies the goods or the class of goods (hereinafter referred to as the said goods) mentioned in the Schedule below, which shall, as soon as may be after its seizure under sub-section (2) of section 67 of the said Act, be d

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New Draft Circular Clarifies GST Issues, Offers Guidance on Compliance, Updates Procedures for Consistent Law Application.
News
GST
Clarifications of certain issues under GST – Draft Circular

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Clarifications of certain issues under GST
GST
Dated:- 14-6-2018

Draft Circular No. 48/22/2018-GST
F. No. CBEC/20/16/03/2017-GST
Government of India
Ministry of Finance
Department of Revenue
Central Board of Indirect Taxes and Customs
GST Policy Wing
New Delhi, Dated the 14th June, 2018
To,
The Principal Chief Commissioners/ Chief Commissioners/Principal Commissioners/ Commissioners of Central Tax (All)/
The Principal Directors General/ Directors General (All)
Madam/Sir,
Subject: Clarifications of certain issues under GST- regarding
Representations have been received seeking clarification on certain issues under the GST laws. The same have been examined and the clarifications on the same are as below:
Sl. No.
Issue
Clarification
1.
Whether services of short-term accommodation, conferencing, banqueting etc. provided to a Special Economic Zone (SEZ) developer or a SEZ unit should be treated as an inter-State supply (under section 7(5)(b) of the IGS

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GST Act is a specific provision relating to supplies of goods or services or both made to a SEZ developer or a SEZ unit, which states that such supplies shall be treated as inter-State supplies.
1.4 It is therefore, clarified that services of short term accommodation, conferencing, banqueting etc., provided to a SEZ developer or a SEZ unit shall be treated as an inter-State supply.
2.
Whether the benefit of zero rated supply can be allowed to all procurements by a SEZ developer or a SEZ unit such as event management services, hotel and accommodation services, consumables etc?
2.1 As per section 16(1) of the IGST Act, “zero rated supplies” means supplies of goods or services or both to a SEZ developer or a SEZ unit. Whereas, section 16(3) of the IGST Act provides for refund to a registered person making zero rated supplies under bond/LUT or on payment of integrated tax, subject to such conditions, safeguards and procedure as may be prescribed. Further, as per the second proviso to r

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on 17(5) of the CGST Act, if event management services, hotel, accommodation services, consumables etc. are received by a SEZ developer or a SEZ unit for authorised operations, as endorsed by the specified officer of the Zone, the benefit of zero rated supply shall be available in such cases to the supplier.
3.
Whether independent fabric processors (job workers) in the textile sector supplying job work services are eligible for refund of unutilized input tax credit on account of inverted duty structure under section 54(3) of the CGST Act, 2017, even if the goods (fabrics) supplied are covered under notification No. 5/2017-Central Tax (Rate) dated 28.06.2017?
3.1 Notification No. 5/2017-Central Tax (Rate) dated 28.06.2017 specifies the goods in respect of which refund of unutilized input tax credit (ITC) on account of inverted duty structure under section 54(3) of the CGST Act shall not be allowed where the credit has accumulated on account of rate of tax on inputs being higher than

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GST Registration
Query (Issue) Started By: – GEE LIMITED Dated:- 14-6-2018 Last Reply Date:- 25-6-2018 Goods and Services Tax – GST
Got 4 Replies
GST
The party is liable to pay GST from July 2017 onwards but GST registration has been taken from 01.04.2018.
How would they submit the late returns from July 2017 to March 2018.
Is it possible that the date of commencement of the business can be amended on the GST portal.
Reply By Alkesh Jani:
The Reply:
Sir,
In this regards, my vie

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GST Query with regard to Training and Education Services
Query (Issue) Started By: – sujit ghosh Dated:- 14-6-2018 Last Reply Date:- 25-6-2018 Other Topics
Got 2 Replies
Indian Laws
I run a training consultancy firm in Kolkata ( Legal entity is partnership firm) and is registered for GST. Have conducted a training for a batch ten people from Bhutan for a duration of seven days in Delhi against which remuneration was credited to the Company's current account .The account transfer

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Amended GST Rule 138: No E-Way Bill Required for Transporting Empty LPG Cylinders for Non-Supply Purposes.
Act-Rules
GST
No e-way bill is required to be generated – where empty cylinders for

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Anti-Profiteering Authority Enforces Amended GST Rule 133 to Curb Unfair Pricing, Enhance Transparency, and Protect Consumers.
Act-Rules
GST
Order of the Anti Profiteering authority – GST Rul

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50% of Cess u/s 54(5) of GST Compensation Act 2017 Must Go to Consumer Welfare Fund.
Act-Rules
GST
Consumer Welfare Fund. – an amount equivalent to fifty per cent. of the amount of cess deter

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Refund of Tax to Specified Persons Under GST Act: Invoice Value Restriction Removed Retroactively from July 1, 2017.
Act-Rules
GST
Refund of tax to certain persons – specified person u/s 55 –

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GST Rules Amended: Retrospective Revision of ITC Refund Formula for Inverted Duty Structure from July 1, 2017.
Act-Rules
GST
Application for refund of ITC on on account of inverted duty struc

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Imported Goods Returned to Overseas Party – IGST Claim
Query (Issue) Started By: – Praveen Nair Dated:- 14-6-2018 Last Reply Date:- 17-6-2018 Goods and Services Tax – GST
Got 4 Replies
GST
Dear Experts
Goods were imported by paying IGST, now the material is rejected and is to be returned to the exporter overseas. How do we get refund of the IGST amount?
Do we have to export and claim IGST?
Kindly suggest
Regards | Pravin Nair
Reply By MUKUND THAKKAR:
The Reply:
Sir,
please refer refund condition as per GST law. as per my view you have take credit of IGST instated of refund procedure.
Reply By Alkesh Jani:
The Reply:
Sir,
In this regards, Please refer Notification No. 36/95-Cus (NT) dated 26/05/1995 as amended and lastly it was amended vide Notification No.57/2017-Cus (NT) dated 29.06.2017.
My point of view is that you need to claim drawback and not refund as it is re-exportation.
Our experts may correct me if mistaken.
Thanks
Reply By YAGAY and SUN:
The Rep

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ccountant Certificate for not passing on the burden to others
All relevant documents to substantiate their claim for Unjust enrichment like Balance Sheet, Schedule etc
Processing of Claims
The refund claims are covered under Section 27 of Customs Act, 1962, which dwells in detail as to how the refund claims are to be considered for sanctioning to the claimants.
The Important points for considering the sanction of refund:
Limitation
This point taken care of application of section which mandates that every refund claim has to be filed within 06 months from the date of payment. Refund Claims received after the statutory period of 06 months are not entertained as it is barred by limitation.
Eligibility
The eligibility of the refund of an assessed document is studied whether the assessed documents is re-assessed for claiming the benefit of notification, different rate of duties, revising the valuation, changing the classification and revising the duty calculation.
Scrutiny of claim

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ginal Sales Invoices, alongwith list containing Invoice No., Date, Amount of ST/VAT paid on imported goods for which Refund is claimed.
Calculation / Worksheet
Self Declaration
All original challans evidencing payment of Sales Tax /VAT with detail of invoices
Original Chartered Accountant Certificate
All relevant documents to substantiate their claim for Unjust enrichment.
How to apply
The refund application has to be filed within one year from the date of payment of Customs duty i.e. within one year of TR 6 Challan date. Only one refund application for one importer in a month is permitted. The application filled in all respects has to be submitted to Appraising Refund Section of Kolkata Customs House and obtain a dated acknowledgement.
Processing
The TA/STA of CRC IIA/B receives the refund application and registers the refund claim and allots one unique number for the same. He submits the refund file on the same/subsequent day to AC for his perusal. After the AC/CRC, signs as

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