Goods and Services Tax

2018 (7) TMI 1491 – AUTHORITY FOR ADVANCE RULING – KARNATAKA – [2018] 2 GSTL (AAR) 107 (AAR) – Levy of GST – Collecting agent for insurance companies – Whether collections made by the applicant under Manipal Arogya Suraksha Scheme from public on behalf of the insurance companies are liable to levy of tax considering the fact that the same are made merely as a collecting agent and the applicant is not engaged in provision of services?
–
Held that:- The Applicant requested to permit them to withdraw the application filed for advance ruling vide their letter dated 19.02.2018 – The application filed by the Applicant for advance ruling is dismissed as withdrawn. – Advance Ruling No. KAR ADRG 08/2018 Dated:- 23-4-2018 – Mr. Harish Dharnia,

= = = = = = = =

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

= = = = = = = =

y also enclosed copies of challan for ₹ 5,000/- bearing CIN No. SBIN17112900289857 for ₹ 5,000/- towards SGST dated 23.11.2017. 2. The Applicant is engaged in provision of educational and health care services to general public. The Applicant in association with various Trusts and NGSs has introduced comprehensive healthcare programmes, for the betterment of the society at large and living in coastal Karnataka, such as Manipal Arogya Suraksha Scheme wherein the public shall be insured with insurance companies upon which they will be provided with certain facilities at concessional rates. The applicant shall be obliged to collect premium from the beneficiaries and pass on the same to the insurance companies for the provision of in

= = = = = = = =

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

= = = = = = = =

t application for Advance Ruling under CGST / SGST Act‟2017. 5. The authorized representatives Sri. Prashanth Bhat and Mrs. Nidhi Lukose, Chartered Accountants, attended the personal hearing proceedings, held on 09.01.2018 and presented their submissions. The Applicant, vide their letter MAHE/TAX/GST-8/17-18 dated 19.02.2018, informed that they intend to withdraw the Advance Ruling Application and requested to permit them to withdraw the application. FINDINGS & DISCUSSION: 6. We have considered the submissions made by the Applicant in their application for advance ruling as well as the submissions made by Sri. Prashanth Bhat and Mrs. Nidhi Lukose, Chartered Accountants during the personal hearing. We also considered the issue/tran

= = = = = = = =

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

= = = = = = = =

2018 (6) TMI 1125 – AUTHORITY FOR ADVANCE RULINGS, KARNATAKA – [2018] 2 GSTL (AAR) 108 (AAR) – Levy of GST – educational and health care services to general public – Whether the amount recovered from post graduate course candidates as compensation on certain contingencies, is liable to GST in the hands of Manipal Academy of Higher Education? – Whether the amount recovered from employees as notice pay recovery for not serving agreed notice period is liable for GST? – Whether fees forfeited from students on discontinuing the course, before the term, is liable to GST?
–
Held that:- The Applicant requested to permit them to withdraw the application filed for advance ruling vide their letter dated 19.02.2018.
–
Ruling:- The application

= = = = = = = =

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

= = = = = = = =

of challans for ₹ 10,000/- bearing CIN number SBIN17112900289774 for ₹ 5,000/- towards CGST and CIN No. SBIN17112900289857 for ₹ 5,000/- towards SGST both dated 23.11.2017. 2. The Applicant is engaged in provision of educational and health care services to general public. The Applicant enters into agreement with the candidates of post graduate courses to take up employment in the constituent units of MAHE and other affiliated hospitals specified by them and also to continue such employment for a period of 3 years. Further, the agreement provides that in any of the following scenarios, the candidate will be required to pay pre-specified compensation to MAHE, that is linked to the course fee. Discontinuance of course for any

= = = = = = = =

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

= = = = = = = =

GST? iii. Whether fees forfeited from students on discontinuing the course, before the term, is liable to GST? PERSONAL HEARING: / PROCEEDINGS HELD ON 09.02.2018. 4. The Applicant submitted Specific authorization, issued by Sri. Varadaraya Pai, Director Finance, authorizing Sri. Prashanth Bhat, Mrs. Nidhi Lukose, Chartered Accountants to represent the applicant / appear, in connection with the proceedings, before the authorities in respect of the instant application for Advance Ruling under CGST / SGST Act 2017. 5. The authorized representatives Sri. Prashanth Bhat and Mrs. Nidhi Lukose, Chartered Accountants, attended the personal hearing proceedings, held on 09.01.2018 and presented their submissions. The Applicant, vide their letter MAH

= = = = = = = =

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

= = = = = = = =

2018 (6) TMI 979 – CESTAT MUMBAI – TMI – Waiver of penalty u/s 11AC – application of wrong notification – Held that:- This is not a case where the appellant has cleared the goods clandestinely. However, they were clearing the goods on payment of duty applying the wrong notification at the same time they were availing the CENVAT credit. Therefore, the notification which they claimed was not admissible to them – there is no suppression on the part of the appellant. The ingredients for imposing penalty under Section 11AC was wrongly invoked – Section 11AC is not applicable hence the penalty imposed under Section 11AC is set aside – appeal allowed – decided in favor of appellant. – E/87772/2017 – A/86613 / 2018 – Dated:- 23-4-2018 – Shri Rames

= = = = = = = =

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

= = = = = = = =

ailing CENVAT credit and paying duty @1%/2% in terms of Notification No. 1/2011-CE during the period from March 2012 to October 2013. The appellant paid the differential excise duty. Thereafter, adjudicating authority confirmed the demand of duty and also imposed penalty of equal amount under Section 11AC. Being aggrieved by the order-in-original, the appellant filed appeal before the Commissioner (Appeals) only for wavier of penalty imposed under Section 11AC. The Learned Commissioner (Appeals) upheld the order-in-original holding that as per judgment of Hon ble Supreme Court in the case of Union of India v. Dharmendra Textile Processors [2008 (231) ELT 3 (SC) penalty imposed under Section 11AC cannot be reduced. Therefore, appellant is be

= = = = = = = =

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

= = = = = = = =

department to issue show cause notice well within the normal period. The audit officer also pointed out this discrepancy from the records. Therefore, there was no suppression of the facts on the part of the appellant. The appellant have not disputed the demand and paid the same on pointing out. Therefore the confirmation of duty and payment thereof stand maintained. In the facts, as discussed above, there is no suppression on the part of the appellant. The ingredients for imposing penalty under Section 11AC was wrongly invoked. As regard the judgment of the Hon ble Supreme Court in the case of Dharmendra Textile Processors it deals with the a situation where there is suppression of fact and imposition of penalty under Section 11AC is correc

= = = = = = = =

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

= = = = = = = =

2018 (6) TMI 522 – CESTAT MUMBAI – TMI – Rectification of mistake – dismissal of appeal based on litigation policy – Held that:- Firstly the issue of refund arises only due to the respondent paying services tax under a wrong assessee code. Therefore, the issue is of not recurring in nature or legal issue relating to the refund or classification was involved, only in such cases the exclusion provided in clause (c) will be applicable – this case does not' fall under the clause (c) of para 3 of the instruction dated 17/08/2011 – ROM application dismissed being not maintainable. – APPLICATION NO: ST/ROM-85295/2018 IN APPEAL NO: ST/87143/2017 – M/85461/2018 – Dated:- 23-4-2018 – Shri Ramesh Nair, Member (Judicial) Shri Dilip Shinde, Assistant C

= = = = = = = =

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

= = = = = = = =

JC dated 4th April 2018 whereby clause (3) stands withdrawn. 4. On a careful consideration of the submissions made by both the sides, I find that, firstly the issue of refund arises only due to the respondent paying services tax under a wrong assessee code. Therefore, the issue is of not recurring in nature or legal issue relating to the refund or classification was involved, only in such cases the exclusion provided in clause (c) will be applicable. Therefore this case does not' fall under the clause (c) of para 3 of the instruction dated 17/08/2011. Moreover, Government of India further amended the instruction dated 17/08/2011 vide F. No. 390/Misc./116/2017-JC dated 4th April 2018 to cover all the cases wherein amount involved is less

= = = = = = = =

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

= = = = = = = =

2018 (5) TMI 1651 – AUTHORITY FOR ADVANCE RULING – KARNATAKA – 2018 (13) G. S. T. L. 221 (A. A. R. – GST), [2018] 2 GSTL (AAR) 109 (AAR) – Supply of goods and/or services – Intent to sell unit situated at Hiriyur along with all assets and liabilities – Whether the transaction would amount to supply of goods or supply of services or supply of goods & services? – N/N. 12/2017-Central Tax (Rate) dated 28.06.2017 – Whether the transaction would cover under sl.no.2 of the N/N. 12/2017-Central Tax (Rate) dated 28.06.2017?
–
Held that:- The activity of transfer of a going concern constitutes a supply or service. The Notification further provides 'Nil' rate of tax on such a supply – the transfer of a going concern constitutes a supply of service – A going concern is a concept of accounting and applies to the business of the company as a whole. Transfer of a going concern means transfer of a running business which is capable of being carried on by the purchaser as an independent business.

= = = = = = = =

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

= = = = = = = =

2017 AND UNDER SUB SECTION (4) OF SECTION 98 OF KARNATAKA GOODS AND SERVICES TAX ACT, 2017 M/s Rajashri Foods Private Ltd,, (hereinafter referred to as 'Applicant' holding GSTIN number 29AAACR6946B1ZC, having registered address at #17, Platform Road, Seshadripuram, Bengaluru – 560020 have Filed an application in form GST ARA-01 on 19,12.2017 seeking Advance Ruling under Section 97 of CGST Act, 2017, KGST Act, 2017 & IGST Act, 2017 read with Rule 104 of CGST Rules 2017 & KGST Rules 2017. They enclosed copy of challan for ₹ 10,000/-bearing CIN number SB1N17122900184487 dated 19-12-2017 towards the applicable fee. 2. The applicant, having three manufacturing units situated at Ramanagara, Hiriyur and Bengaluru [Seshadripuram], intends to sell the unit situated at Hiriyur along with all its fixed assets namely land, building, plant & machinery etc., current assets namely stock & trade receivables etc., and liabilities namely Bank term loans, bank working capita

= = = = = = = =

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

= = = = = = = =

form of inventory and receivables. It has also availed term loans from the bank for the purpose of setting up of the unit and working capital loans availed from the banks for meeting the working capital requirements. The unit has also liabilities in the form of sundry creditors and certain outstanding liabilities. c. The proposed transaction of sale of unit as a whole involves transferring of all the assets to the purchaser and also taking over of all the liabilities by the purchaser. FINDINGS & DISCUSSION: 5. We have considered the submissions made by the Applicant in their application for advance ruling as well as the submissions made by Sri S. Vishnu Murthy, Chartered Accountant, the authorised representative of the applicant, during the personal hearing. We also considered the questions / issues on which advance rulings have been sought for by the applicant, relevant facts having bearing on the questions / issues raised, the applicant's understanding / interpretation of la

= = = = = = = =

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

= = = = = = = =

rking capital requirements. Furthermore the unit has sundry creditors as well as outstanding liabilities. It has been summarised that the transaction envisages the transfer of all assets to the buyer and the buyer shall also take over all the liabilities. 7.2 The aforesaid statement of facts conveys that the unit sought to be sold is a fully functional unit and the transaction contemplates the transfer of the entire business to a new person, who would not only enjoy a right over the assets but shall also take over the liabilities. It thus postulates that there will be a continuity of business. As the unit is said to be functional and is desired to be transferred as a whole to a new owner it amounts to transfer of a going concern as a whole. 7.3 In the backdrop of the aforementioned facts of the case it now needs to be determined whether the transaction amounts to supply of goods or supply of services or supply of both goods and services. 7.3.1 Section 7 of the CGST Act, 2017 defines th

= = = = = = = =

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

= = = = = = = =

concern even if the act of transfer does not constitute an activity carried out in the course of regular business or for furtherance of business, the activity may still qualify to be termed as a supply. 7.3.2 Section 7(1) (d) stipulates that activities referred to in Schedule II shall be treated as supply of goods or supply of services. In Schedule II the entry at serial number 4 refers to Transfer of business assets'. Transfer of business assets is considered as supply of goods. The transfer of business assets implies that a part of the assets are transferred and not the whole business. It is the applicants case that the entire business is proposed to be transferred, where all assets and liabilities will be transferred to the new owner and business would have continuity, regularity and permanency, Thus an entire ongoing activity will get transferred, which would include assets of the business, the stock in trade, cash in hand as also the liabilities attached to the business. Furth

= = = = = = = =

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

= = = = = = = =

ysis we conclude that the transfer of a going concern constitutes a supply of service. 8. The second question for which a Ruling has been sought is whether the transaction would cover under si.no.2 of the Notification No. 12/2017-Central Tax (Rate] dated 28.06.2017? 8.1 The notification itself speaks that the activity of transfer of a going concern, as a whole or independent part thereof, is exempt from payment of so much Central Tax leviable under sub-section (1) of section (9) of the CGST Act, 2017. The essential condition in-buiit in the Notification is that the transaction should involve a going concern only. The applicant has only asserted and not proved or shown conclusively that the transaction involves a going concern. 9. A going concern is a concept of accounting and applies to the business of the company as a whole. Transfer of a going concern means transfer of a running business which is capable of being carried on by the purchaser as an independent business, Such transfer o

= = = = = = = =

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

= = = = = = = =

2018 (5) TMI 904 – AUTHORITY FOR ADVANCE RULING – DELHI – 2018 (13) G. S. T. L. 116 (A. A. R. – GST) – Levy of GST on Service contract with railways – cleaning, sanitation, manpower supply, washing, housekeeping, etc. in Delhi and outside Delhi – pure service contract or works contract – N/N. 9/2017-Integrated Tax (Rate) dated 28.06.2017 – Whether the contract for Railway station sanitation and / or cleaning, Train cleaning & Railway Premises cleaning would be exempt from GST vide S. No. 3 of N/N. 9/2017 – Integrated Tax (Rate) dated 28.06.2017 (as intimated by Northern Railway vide its letter dated 20.11.2017), what would be the impact of GST exemption, if the above contract is pure service contract or work contract (involving sanitation labour and material)?
–
Whether 'pure services' or the same also involve supply of any goods? – Held that: – the cleaning contracts of the applicant with the Northern Railways, which may involve use of consumables such as soap/ detergent/ chemica

= = = = = = = =

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

= = = = = = = =

said Notification as 'Central Government'.
–
Whether the cleaning services rendered by the applicant are in relation to any function entrusted to a Municipality under Article 243W of the Constitution? – Held that: – The Railways cannot be called a Municipality under Articles 243P and 243Q of the Constitution of India. Further, the functions of Railways i.e. transport of goods or passengers are not covered in Schedule XII of the Constitution which covers the constitutional functions of Municipalities. The cleaning services supplied to Railways i.e. cleaning of locomotives, railway stations, railway lines provided by the applicant cannot be said to be covered in Clause (6) of Schedule XII of the Constitution which covers 'public health, sanitation conservancy and solid waste management' functions of the Municipalities. The Municipalities are constitutionally entrusted with such functions in relation to urban areas but they are not entrusted with such functions in relation to Railway

= = = = = = = =

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

= = = = = = = =

pak Gulati, Advocate Shri Satish Kumar Dixit, Advocate Shri Rajeev Sharma, Advocate Present for the Revenue (Centre) : Ms. Jyoti Virdi, Assistant Commissioner, CGST, Division Janakpuri, Delhi West Present for the Revenue (State) : Ms. Poonam Assistant Commissioner (W09), DGST Shri Isharam Pal, AVATO, DGST Statement of Facts as per the Applicant: The applicant has started the business of executing service contract, i.e. cleaning, sanitation, manpower supply, washing, housekeeping, etc. in Delhi and outside Delhi. 2. The instances of scope of contractor are as under: (a) Mechanized/ Comprehensive cleaning at Railway Stations. Station Building Cleaning, Platform Cleaning, Track Cleaning, Office & Waiting hall cleaning, Toilet cleaning, Circulating area cleaning etc. (b) Mechanized cleaning of sheds Shed floor, pits, urinals, desilting of manholes, underground drains and open drains, disposal of Industrial waste to Dumping ground, Loading of Ferrous Scrap, Cutting of grass and shrubs a

= = = = = = = =

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

= = = = = = = =

of Garbage etc from railway stations. Conservancy contract for daily removal of solid waste/ rubbish/ refuse / hedge cuttings etc. from the dustbins/ heaps or nominated sites of Railway Station. 3. The applicant has applied for and has been awarded a contract from Northern Railway, New Delhi for providing services in relation to housekeeping, cleaning, sanitation, waste management, locomotives cleaning and washing at Delhi. The Service contract of Northern Railway is to be performed in Northern Railway, Delhi and outside Delhi. 4. The scope of work as per tender document is as under: No. Description of activity 1 Whether the contract for Railway station sanitation and / or cleaning, Railway line sanitation and / or cleaning, Train and Engine Sanitation and / or cleaning and involving other sanitation work would be exempt from GST, what would be the impact of GST exemption, if the above contract is pure service contract or work contract (Involving sanitation labour and material). 5. The

= = = = = = = =

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

= = = = = = = =

ly for domestic, industrial and commercial purposes. (f) Public health, sanitation conservancy and solid waste management. (g) Fire services (h) Urban forestry, protection of the environment and promotion of ecological aspects. (i) Safeguarding the interests of weaker sections of society, including the handicapped and mentally retarded. (j) Slum improvement and upgradation. (k) Urban poverty alleviation. (l) Provision of urban amenities and facilities such as parks, gardens, playgrounds. (m) Promotion of cultural, educational and aesthetic aspects. (n) Burials and burial grounds; cremations, cremation grounds; and electric crematoriums. (o) Cattle pounds, prevention of cruelty to animals. (p) Vital statistics including registration of births and deaths. (q) Public amenities including street lighting, parking lots, bus stops and public conveniences. (r) Regulation of slaughter houses and tanneries. Details of Question(s) on which Advance Ruling is requested: 8. Whether the contract for

= = = = = = = =

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

= = = = = = = =

ing of road and desilting of surface drains, manhole, gully trap and latrine system of various size and depth and maintenance of the same in the running condition of colony area, and removal of accumulated garbage silt muck etc to the nominated railway dustbin. (g) Removal and disposal Garbage etc from railway colonies. Conservancy conrtact for daily removal of solid waste/ rubbish/ refuse / hedge cuttings etc. from the dustbins/ heaps or nominated sites of Railway Colony and other Railway premises. (h) Removal and disposal of Garbage etc from railway stations. Conservancy contract for daily removal of solid waste/ rubbish/ refuse / hedge cuttings etc. from the dustbins/ heaps or nominated sites of Railway Station. Would be exempt from GST vide S. No. 3 of Notification No. 9/2017 – Integrated Tax (Rate) dated 28.06.2017 (as intimated by Northern Railway vide its letter dated 20.11.2017), what would be the impact of GST exemption, if the above contract is pure service contract or work c

= = = = = = = =

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

= = = = = = = =

above, are covered in heading no. 9994 – Sewage and waste collection, treatment and disposal and other environmental protection services. Services by way of public conveniences such as provision of facilities of bathroom, washrooms, lavatories, urinal or toilets. Comments of Jurisdictional Officers (Centre & State): 12. The following aspects need to be looked at: i. Whether activities carried out by M/s VPSSR Facilities relating to mechanized cleaning of station, rail wagon, railway office, sheds etc. is covered by the taxable entry -"cleaning activity"? ii. Whether cleaning and sanitation services provided to railway stations, trains, sheds, railway colonies and railway offices are in relation to any function entrusted to a Municipality under Article 243W of the Constitution of India? 13. Under the Finance Act, "Cleaning Activity" is defined as: " Cleaning activity" means cleaning, including specialised cleaning services such as disinfecting, extermin

= = = = = = = =

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

= = = = = = = =

e freight revenue of railways is more than double of the activity of passenger revenue. It only shows that substantial railways is in commercial freight transport. Even, with reference to the status of the railway stations, we note that the same cannot be considered as non-commercial building or premises. The commercial nature of the railway stations and its premises is very apparent. Having examined the scope of activities of railways and the premises of railway stations we are of the opinion that the activities carried out by the appellant relating to mechanical cleaning of station, rail wagon, railway office is covered by the taxable entry- "cleaning activity" Thus, being a public utility by itself does not provide any immunity from service tax and service tax is leviable on cleaning services provided to Railways towards cleaning of railway station, railway shed or office premises of the general manager as Railways is a commercial organization. 15. S. No. 3 of Notification

= = = = = = = =

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

= = = = = = = =

stitution of India under Article 243W and relate to the functions which are entrusted to the Municipality. 18. Paragraph 301 of Chapter III of Indian Railways Works Manual suggests that for sanitary arrangements in stations and colonies, the allocation of responsibilities lies with operating, medical and engineering departments. Thus, there is no entrustment and responsibility of Municipality towards cleaning of Railway premises/ properties. 19. Hence, in the light of above provisions, this office is of the view that railway station sanitation and/ or cleaning, train cleaning and Railway premises cleaning are not entrusted to Municipality and thus does not fall under the purview of S. No. 3 of Notification No. 9/2017 – Integrated Tax (Rate) dated 28.06.2017. 20. Conclusion: This office is of the view that services in question are not exempt from GST. Thus, the services provided by M/s VPSSR Facilities are taxable and will attract GST @ 18% under the Service Classification code Chapter

= = = = = = = =

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

= = = = = = = =

The following entry has been inserted at S. No. 3A in the Notification No. 12/2017 – Central Tax (Rate) dated 28.06.2017 by Notification No. 2/2018 – Central Tax (Rate) dated 25.01.2018; at S. No. 3A of Notification No. 09/2017 – Integrated Tax (Rate) dated 28.06.2017 by Notification No. 2/2018 – Integrated Tax (Rate) dated 25.01.2018 and parallel SGST Notifications: Sl. No. Chapter, Section, Heading, Group or Service Code (Tariff) Description of Services Rate (%) Condition (1) (2) (3) (4) (5) 3A Chapter 99 Composite supply of goods and services in which the value of supply of goods constitutes not more than 25 per cent. of the value of the said composite supply provided to the Central Government, State Government or Union territory or local authority or a Governmental authority or a Government Entity by way of any activity in relation to any function entrusted to a Panchayat under article 243G of the Constitution or in relation to any function entrusted to a Municipality under article

= = = = = = = =

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

= = = = = = = =

public notification, specify to be an industrial township. 25. Hence, according to the Article 243Q of the Constitution of India, only Nagar Panchayats, Municipal Councils and Municipal Corporations are considered as Municipalities. However, in certain urban areas, called industrial townships, an industrial establishment may provide municipal services and a Municipality may not be constituted in that urban area. However, it appears that 'Railways' is not covered in Article 243Q either as a Municipality or as an industrial establishment for a notified industrial township in place of a Municipality. 26. The article 243W of the Constitution of India reads as under: 243W Powers, authority and responsibilities of Municipalities, etc. Subject to the provisions of this Constitution, the Legislature of a State may, by law, endow- (a) the Municipalities with such powers and authority as may be necessary to enable them to function as institutions of self-government and such law may cont

= = = = = = = =

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

= = = = = = = =

ent. 7. Fire services 8. Urban forestry, protection of the environment and promotion of ecological aspects. 9. Safeguarding the interests of weaker sections of society, including the handicapped and mentally retarded. 10. Slum improvement and upgradation. 11. Urban poverty alleviation. 12. Provision of urban amenities and facilities such as parks, gardens, playgrounds. 13. Promotion of cultural, educational and aesthetic aspects. 14. Burials and burial grounds, cremation, cremation grounds and electric 15. Cattle pounds; prevention of cruelty to animals. 16. Vital statistics including registration of births and deaths. 17. Public amenities including street lighting, parking lots, bus stops and public conveniences. 18. Regulation of slaughter houses and tanneries. 28. Hence, according to the Article 243W and Twelfth Schedule of the Constitution of India, the Municipalities have powers and responsibilities only with respect to the: (i) preparation of plans for economic development and so

= = = = = = = =

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

= = = = = = = =

ns of CGST and SGST, which covers Pure Services (excluding works contract service or other composite supplies involving supply of any goods) provided to the Central Government, State Government, Union Territory, local authority, Governmental authority or Government entity by way of any activity in relation to any function entrusted to a Municipality under Article 243W of the Constitution. 31. For the impugned services to be covered under the said exemption notification, the following aspects need to be examined: (i) Whether the said cleaning services can be considered as "pure services" or the same are works contract services/ composite services involving supply of goods also. (ii) Whether the service receiver i.e. Northern Railways is covered in any of the categories i.e. 'Central Government' or 'State Government' or 'Union Territory' or 'Local Authority' or a 'Governmental Authority' or a 'Government Entity'. (iii) Whether the

= = = = = = = =

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

= = = = = = = =

arate payment made for the use of consumables. For the purpose of providing the service of cleaning, they were required to use soap/detergent/chemical of a very minimal quantity and of a very nominal value. The soap/detergent/chemical was used for removing the muck/ grime and the same got completely 'consumed' in the process and were not transferred to the Railways. 34. The Department of Trade & Taxes contended that the contract between the petitioner and the Railways is not just a service contract but the same is a works contract of a composite nature. The property in goods i.e. chemical is transferred by the petitioner to the Railways. The petitioner is required to calculate chemical/solvent per month and the same has to be delivered by the petitioner to the Railways. The contract stipulates that cost of chemicals and machines is included in activities mentioned in the schedule of unit rates. 35. However, the Hon'ble High Court held that the soaps, detergent, chemical

= = = = = = = =

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

= = = = = = = =

al authority awarding the work of maintenance of street lights in a Municipal area to an agency which involves apart from maintenance, replacement of defunct lights and other spares. In this case, the scope of the service involves maintenance work and supply of goods, which falls under the works contract services. The exemption is provided to services involves only supply of services and not for works contract services. 37. Accordingly, it is held that in the present case, the cleaning contracts of the applicant with the Northern Railways, which may involve use of consumables such as soap/ detergent/ chemicals of a minimal quantity and of a very nominal value are "pure service" contracts, in terms of S. No. 3 of Notification No. 9/2017 – Integrated Tax (Rate) dated 28.06.2017 as amended by Notification No. 2/2018 – Integrated Tax (Rate) dated 25.01.2018 and parallel CGST and SGST notifications. 38. As far as the second aspect is concerned i.e. whether the service receiver i.e

= = = = = = = =

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

= = = = = = = =

the function of the Railways is to transport goods and passengers which are excluded from exemption under S. No. 6(C) of Notification No. 9/2017 – Integrated Tax (Rate) dated 28.06.2017 and parallel Notifications of CGST and SGST. On the other hand, the functions of the Municipalities under Article 243W of the Constitution are exempted under S. No. 4 of Notification No. 9/2017 – Integrated Tax (Rate) dated 28.06.2017 and parallel CGST and SGST Notifications. 40. In the CESTAT Final Order No. ST/A/50646/2017-CU (DB) dated 06.02.2017, in the case of Mukesh Kalway V/s Commissioner of Central Excise, Bhopal (reported in 2017 (3) TMI-615), mentioned by both the Jurisdictional Officers (Centre and State), the issue was whether mechanised cleaning service provided for railways, diesel locomotives, railway station premises, General Manager's Office were taxable under the category of 'cleaning services' during the period July 2005 to March 2010. In the said case, the Hon'ble Tri

= = = = = = = =

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

= = = = = = = =

Excise, Goa V/s Mormugao Municipal Council (MMC) that MMC, who was engaged in collecting rent contested payment of Service Tax and argued that certain markets were made by them as per their duty under the Constitution of India. They had argued that the renting of immovable property service in such markets cannot be considered as taxable service as the said markets were developed in discharge of Constitution responsibility under Article 243W of the Constitution of India and the 12th Schedule thereunder. They argued that they were not engaged in the trade or commerce and the shop rent out are not in the course of furtherance of business or commerce but are statutory responsibility under the Goa Municipality Act and are for discharge of Constitutional obligation. 42. However, Hon'ble CESTAT held that perusal of Entries 12 and 17 of Schedule Xll clearly shows that what has been mentioned thereunder is provisions of urban amenities and facilities, such as parks, gardens, playgrounds. T

= = = = = = = =

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

= = = = = = = =

nservancy and solid waste management' functions of the Municipalities. The Municipalities are constitutionally entrusted with such functions in relation to urban areas but they are not entrusted with such functions in relation to Railway properties. 44. It is observed that Northern Railway has informed their sanitation contractors vide No. C-12/San/Misc/2017 dated 20.11.2017 that contracts for station sanitation would be exempt from GST, provided it is a pure service contract and no supply of goods are involved. Since, under Section 103 of the CGST Act, 2017, this ruling is binding only on the applicant and the jurisdictional officers, the Northern Railways is free to contest the same. However, the applicant is required to deposit GST as per this Ruling. Ruling 45. It is held that the cleaning services supplied by the applicant to the Northern Railways are not exempted under S. No. 3 of the Notification No. 09/2017 – Integrated Tax (Rate) dated 28.06.2017, as amended by Notificatio

= = = = = = = =

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

= = = = = = = =

2018 (5) TMI 524 – CENTRAL INFORMATION COMMISSION – 2018 (15) G. S. T. L. 694 (CIC) – Non-disclosure of information – The Complainant reiterated the contents of his RTI application and stated that complete and satisfactory information had not been provided to him – Held that: – The Commission observed that a voluntary disclosure of all information that ought to be displayed in the public domain should be the rule and members of public who having to seek information should be an exception. An open government, which is the cherished objective of the RTI Act, can be realised only if all public offices comply with proactive disclosure norms.
–
The Commission directs the Respondent to furnish the broad details of income and expenditure to the Complainant within a period of 15 days from the date of receipt of this order.
–
Complaint disposed off. – CIC/MOFIN/C/2017/311791/CCEDL-BJ Dated:- 23-4-2018 – Bimal Julka Information Commissioner ORDER FACTS: The Complainant vide his RTI ap

= = = = = = = =

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

= = = = = = = =

uested to inspect the documents on the given date and time. Subsequently, vide his letter dated 28.10.2016, he had informed the Respondent that being a senior citizen, he expressed his inability to inspect the document and surrendered his requirement for information on points (E) to (I). In support of his claim he referred to the decision of the CIC dated 15.12.2009 conveying his right to surrender for inspection of records being inconvenient and expensive. In its response the Respondent submitted that a point-wise reply had been given by them to the Complainant. It was stated that the Complainant did not inspect the documents despite several requests to do the same. Furthermore, it was argued that voluminous data was involved and it was not cost effective to disclose the information. The data sought was for almost two and a half years which was voluminous and contained very minor details of the logistics and infrastructural support which was not feasible to be provided. During the hea

= = = = = = = =

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

= = = = = = = =

ious judgments as under: Rakesh Saraf Vs. Director General of Systems and Data Management- Appeal no. CIC/SS/A/2011/901105, Sayyed Education Society Vs. State of Maharashtra W.P.1305/2011 dated 12.02.2014 (Bombay High Court), Dy. Commissioner of Our Archive Vs. State Chief Information Commissioner W.P. No. 20372/2009 dated 07.01.2010, Brig. Davinder Singh Grewal Vs. Police Department UT Chandigarh File No. CIC/DS/A/2011/003080 dated 07.08.2012, R. K. Jain Vs. D/o Revenue File No. CIC/AT/A/2009/000652 dated 16.09.2009, Munish Kumar Vs. Indian Medicines Pharma Corporation Ltd. File No. CIC/LS/A/2012/002478 dated 02.01.2013 etc. The Commission observed that a voluntary disclosure of all information that ought to be displayed in the public domain should be the rule and members of public who having to seek information should be an exception. An open government, which is the cherished objective of the RTI Act, can be realised only if all public offices comply with proactive disclosure norms.

= = = = = = = =

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

= = = = = = = =

ection 4 of the RTI Act that the information, which a public authority is obliged to publish under the said section should be made available to the public and specifically through the internet. There is no denying that the petitioner is duty bound by virtue of the provisions of Section 4 of the RTI Act to publish the information indicated in Section 4(1)(b) and 4(1)(c) on its website so that the public have minimum resort to the use of the RTI Act to obtain the information. Furthermore, High Court of Delhi in the decision of General Manager Finance Air India Ltd & Anr v. Virender Singh, LPA No. 205/2012, Decided On: 16.07.2012 had held as under: 8. The RTI Act, as per its preamble was enacted to enable the citizens to secure access to information under the control of public authorities, in order to promote transparency and accountability in the working of every public authority. An informed citizenry and transparency of information have been spelled out as vital to democracy and to

= = = = = = = =

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

= = = = = = = =

Supreme Court of India in the decision of R.B.I. and Ors. V. Jayantilal N. Mistry and Ors, Transferred Case (Civil) No. 91 of 2015 (Arising out of Transfer Petition (Civil) No. 707 of 2012 decided on 16.12.2015 had held as under: The ideal of Government by the people makes it necessary that people have access to information on matters of public concern. The free flow of information about affairs of Government paves way for debate in public policy and fosters accountability in Government. It creates a condition for open governance which is a foundation of democracy. DECISION: Keeping in view the facts of the case and the submissions made by both the parties, the Commission directs the Respondent to furnish the broad details of income and expenditure to the Complainant within a period of 15 days from the date of receipt of this order. The Respondent Authority is also advised to suo-motu disclose all information relating to broad details of the income and expenditures, audited statements

= = = = = = = =

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

= = = = = = = =

GST – States – G.O. Ms. No. 26 – Dated:- 23-4-2018 – GOVERNMENT OF PUDUCHERRY COMMERCIAL TAXES SECRETARIAT G.O. Ms. No. 26 The 23rd April, 2018 NOTIFICATION In exercise of the powers conferred by Section 164 of the Puducherry Goods and Services Tax Act, 2017 (Act No. 6 of 2017), the Lieutenant-Governor, Puducherry, hereby make the following rules further to amend the Puducherry Goods and Services Tax Rules, 2017, namely:- 1. (1) These rules may be called the Puducherry Goods and Services Tax (Fourth Amendment) Rules, 2018. (2) They shall be deemed to have come into force with effect from the 18th day of April, 2018. 2. In the Puducherry Goods and Services Tax Rules, 2017, (i) in rule 89, for sub-rule (5), the following sub-rule 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

= = = = = = = =

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

= = = = = = = =

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

= = = = = = = =

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

= = = = = = = =

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

= = = = = = = =

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

= = = = = = = =

purpose recommended by the Central Consumer Protection Council (as may be considered appropriate by the Committee); (e) for making available up to 50% of the funds credited to the Fund each year, for publicity or consumer awareness on GST, provided the availability of funds for consumer welfare activities of the Food Supplies and Consumer Welfare Department 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; (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 Tri

= = = = = = = =

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

= = = = = = = =

for promotion and protection of rights of consumers; (d) 'Committee' means the Committee constituted under sub-rule (4); (e) 'consumer' has the same meaning as assigned to it in clause (d) of sub-section (1) of Section 2 of the Consumer Protection Act, 1986 (68 of 1986), and includes consumer of goods on which State tax has been paid; (f) Fund means the Consumer Welfare Fund established by the State Government Section 57 of the Puducherry Goods and Services Tax Act, 2017 (6 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 instruction 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) In the said rules, after FORM GSTR-8, the following FORM shall be inserted

= = = = = = = =

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

= = = = = = = =

oice is available) 8 (b) Inputs contained in semi-finished or finished goods held in stock (where invoice is available) 8 (c) Capital goods/plant and machinery held in stock 8 (d) Inputs held in stock or inputs as contained in semi-finished /finished goods held in stock (where invoice is not available) 9. Amount of tax payable and paid (based on Table 8) Sl.No. Description 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 terri

= = = = = = = =

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

= = = = = = = =

) where the tax invoices related to the inputs held in stock or inputs contained in semi-finished or finished goods held in stock are not available, the registered person shall estimate the amount under sub-rule (3) of rule 44 based on prevailing market price of the goods; (ii) in case of capital goods/ plant and machinery, the value should be the invoice value reduced by 1/60th 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 form 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>> classificatio

= = = = = = = =

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

= = = = = = = =

GST – States – 17/2018-State Tax – Dated:- 23-4-2018 – FINANCE DEPARTMENT Madam Cama Marg, Hutatma Rajguru Chowk, Mantralaya, Mumbai 400 032, dated the 23rd April 2018. NOTIFICATION Notification No. 17/2018-State Tax No. GST. 1018/C.R. 34/Taxation-1.-In exercise of the powers conferred by section 148 of the Maharashtra Goods and Services Tax Act, 2017 (Mah. XLIII of 2017) (hereinafter in this notification referred to as the said Act ), the Government of Maharashtra, on the recommendations of th

= = = = = = = =

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

= = = = = = = =

Goods and Services Tax – Started By: – SOHAN LAL – Dated:- 22-4-2018 Last Replied Date:- 26-4-2018 – DEAR SIRI WANT TO KNOW THAT I AM RUNNING PETROL PUMP AND I AM SELLING 2 NON GST ITEMS (PETROL AND DIESEL)AND ONE GST ITEM (LUBRICANTS). SO MY QUERY IS THAT CAN I AVAILED ITC ON OTHER EXP. BILL LIKE TELEPHONE EXP. , REPAIR AND MAINT. ETC. AND UTILZIED IN OUTPUT TAX ON LUBRICANTS SALE. – Reply By KASTURI SETHI – The Reply = Your main supply is petrol (Non-GST) and other two non-GST items. . Are you in a position to segregate the expenses (telephone, repair and maintenance etc.) incurred towards taxable and non-taxable supply ? ITC is not beneficial for you, it being costly in the event of non-maintenance of separate record for taxable and non

= = = = = = = =

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

= = = = = = = =

Goods and Services Tax – Started By: – PAWANKUMAR GARG – Dated:- 21-4-2018 Last Replied Date:- 28-5-2018 – SIR, IN THE CASE OF RICE SHELLER I AM DOING JOB WORK OF PADDY MILLING AND RECEIVED MILLING CHAGES @10/- PER QTL.AND PAID GST ON MILLING CHARGES.APART FROM MILLING CHARGES I RETAIN HUSK AND RICE BRAN AS PER AGREEMENT FREE OF COST. I AM PURCHASING MACHINERY PARTS FOR JOB WORK.PLEASE REPLY MY FOLLOWING QUESTIONS.1. WHEATHER I HAVE TO PAY TAX ON JOB WORK CHARGES ON RS.10/-ONLY OR BY ADDING VALUE OF GOODS RETAINED BY ME ESPECIALLY WHEN I HAVE ALREADY PAID TAX ON RICE BRAN.2. CAN I CLAIM FULL ITC ON MACHINERY PARTS WITHOUT REVERSAL.3 CAN I CLAIM ITC OF CAPITAL GOODS IN THE CASE OF NEW RICE SHELLER 4 TOTAL SUPPLY OF GOODS SAY 3400000/-WHICH

= = = = = = = =

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

= = = = = = = =

2017-GST, dated 20-11-2017 along with relevant notifications mentioned in the circular. – Reply By VENKATARAMANAN NATARAJAN – The Reply = Sir,For Q.1 the value of Husk and rice bran is to be added for the consideration need not only be in money and even non monetary consideration is to be valued in terms of money and subject to tax.For Q2. You are entitled to Input tax credit on the capital goods that is on Machinery.For Q3 There is close proximity between the goods processed and the machinery Rice Sheller. Therefore You are entitled to ITC on Rice Sheller alsoFor Q 4 It is a matter of calculation of the tax. Any way my reply may be viewed not as a final one but in the light of the observations of the other reply this may or may not be take

= = = = = = = =

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

= = = = = = = =

Goods and Services Tax – Started By: – mohan sehgal – Dated:- 21-4-2018 Last Replied Date:- 5-5-2018 – Bicycle frame Lock;which is solely and only could be used as a wheel lock for Bicycles;It has no any other use or application;It is designed and made exclusively for fitment on Bicycle Frame.Karnataka High Court vide its Judgement Order Kumar Agencies and others Vs Commisioner of Commercial Taxes(1989 1988 (9) TMI 332 – KARNATAKA HIGH COURT )have taken the view that Bicycle Frame Locks cannot be classified along with all kinds of Padlocks and Locks nor can they be understood as padlocks and Locks;the use of which is altogether different. Some are classifying the same under Tarrif Chapter 8301..Locks and Padlocks for General use and others are classifying the same under 8714..Parts and accessories of Bicycles..8301 is taxed at 18% while 8714 at 12%..under GST Please guide. – Reply By KASTURI SETHI – The Reply = Classification depends upon usage/function of the product. The following j

= = = = = = = =

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

= = = = = = = =

Appellate Tribunal in its impugned order had held that, car locking system combined with alarm is classifiable under sub-heading 8301.20 of Customs Tariff Act, 1975 and not under sub-heading 8531.20 ibid. It was also held that classification is to be determined by the main part of the combination. The Tribunal further held that in case of classification of combined products, classification is to be determined by the main part of combination. The Tribunal also held that, impugned goods being combination of two products, decision which is on only one of those products cannot be cited as precedent. [Commissioner v. Future Innovations Pvt. Ltd.- 2003 (153) E.L.T. A297 (S.C.) = 2002 (10) TMI 799 – SUPREME COURT ] – Reply By mohan sehgal – The Reply = Sir, Bicycle Frame Lock is one item and is not combination of two items.It is EXCLUSIVELY used as a device to lock the Frame of the Bicycle to the wheel of Bicycle. The Central Government in the year 1979 vide notification no.238/79-C.E .dt. 3

= = = = = = = =

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

= = = = = = = =

cles and these are non-motorised vehicles . Bicycle is also a vehicle (non-motorised) as per dictionary meaning. HSN is general classification list and 8714 is specific classification which covers parts and accessories of 8712 (Bicycle and cycles). It is well settled Central Excise law (otherwise also) if specific classification of any product is available, a manufacturer is not to take shelter of general classification. Moreover, usage of padlock/lock is for bicycle/cycle and not motorised vehicle in the situation explained by you. HSN 8714 covers motorised and non-motorised both. HSN 8301 is also for motorised, movable/immovable, embedded property etc. HSN 8301 is not meant for bicycle/cycle or their parts and accessories. If anybody is classifying under 8301 that is legally wrong. CA Sh.Sushil Gupta Sir has perfectly replied that your product is classifiable under HSN 8714. This is my analysis and hope you will be satisfied now. I also welcome the views of other experts on this issu

= = = = = = = =

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

= = = = = = = =

Goods and Services Tax – Levy of GST – construction services / superstructure – Even if agreement between the applicant and the buyer is entered after part of the construction is already completed, wh

= = = = = = = =

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

= = = = = = = =

Goods and Services Tax – Levy of GST – Valuation – construction services / superstructure – undivided and impartible share of land – the value of land, or the undivided share of land, as the case may

= = = = = = = =

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

= = = = = = = =

Goods and Services Tax – Seizure of detained goods – Absence of E-Way bill – e-way bill-02 furnished immediately within 20 minutes from the time of the detention of the vehicle/goods – Since the petit

= = = = = = = =

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

= = = = = = = =

Goods and Services Tax – Seizure of goods with vehicle – absence of Transit Declaration Form – interstate movement of goods through UP – There is no allegation or intention on the part of the assessee

= = = = = = = =

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

= = = = = = = =

Goods and Services Tax – Correction of registration – petitioner applied for registration under GST on 27.6.2017, but mistakenly provided the PAN number of one of the partner of the firm, instead of P

= = = = = = = =

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

= = = = = = = =

Goods and Services Tax – GST – By: – Dr. Sanjiv Agarwal – Dated:- 21-4-2018 – The manufacture, distribution and sale of alcoholic beverages is highly regulated by State Governments under the Constitution of India. While there is a requirement of obtaining a license from the State Governments to set up a distillery, no new licenses are being granted. Similarly, the distribution of alcoholic liquor meant for human consumption is regulated by the State Governments in most of the States. The states regulate the trade through Corporations setup by them to regulate licenses, trading, pricing etc and manufacturers have to supply the stock of liquor through these State public sector corporations, subject to liquor policy and state excise offices. In very few states like Gujarat and Bihar, there is a policy of prohibitions. These Corporations control liquor sales in the respective state and have special privilege under the State Excise Act, i.e., exclusive rights to wholesale foreign made fore

= = = = = = = =

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

= = = = = = = =

cognized in the books of accounts of Corporation. The illustrative list of income heads, apart from trading margin (sales) are generally in the following form – Inactive stock penalties Transfer out order (TOO) fee OFS extension / cancellation fee Scarp sales Demurrage Handling charges Liquidity damage from suppliers etc. Based on the excise policy or liquor sourcing policy, the Beverages Corporation may have a system of open market pricing or fixed margin (i.e., gap between purchase and selling price of products) keeping into account the costs and profit margins. Even where the goods are sold on fixed trading margin as a percentage, it can not be termed as a commission, simply because substance over form would prevail and that also accounting and nature of transaction are important to determine taxability. Beverage Corporations effectively purchase liquor stocks of different brands from suppliers and sell them to licensee for onward retail sale / consumption. While the Corporation tre

= = = = = = = =

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

= = = = = = = =

f service provided by the client; or any customer care service provided on behalf of the client; or procurement of goods or services, which are inputs for the client; or Explanation: For the removal of doubts, it is hereby declared that for the purposes of this sub-clause, inputs means all goods or services intended for use by the client; production or processing of goods for, or on behalf of, the client; provision of service on behalf of the client; or a service incidental or auxiliary to any activity specified in sub-clauses (i) to (vi), such as billing, issue or collection or recovery of cheques, payments, maintenance of accounts and remittance, inventory management, evaluation or development of prospective customer or vendor, public relation services, management or supervision, and includes services as a commission agent, but does not include any activity that amounts to manufacture of excisable goods. In the above definition, commission agent meant any person who acts on behalf of

= = = = = = = =

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

= = = = = = = =

rious licensees for retail consumer sale with a view to regulate supply of liquor through conferring the exclusive privilege of purchase and sale in the wholesale thereof upon the appellant. As a consequence of the monopoly assumed by the State Government in this area and conferment of the privilege on the appellant, it is mandatory for all manufacturers / distilleries /suppliers to sell liquor in the State only through the canalizing agency. The appellant was not registered as a Service Tax provider, had not filed returns of Service Tax nor had remitted Service Tax. While the revenue sought to tax these transactions as business auxiliary services u/s 65(19) read with section 65(105) (zzh) of Finance Act, 1994, the Corporation contended that it was a pure trading transaction and was not subject to levy of Service Tax. Revenue assumed that the appellant had provided the taxable Business Auxiliary Service (BAS) to manufacturers of liquor/distilleries and issued the show cause notice date

= = = = = = = =

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

= = = = = = = =

n in following two cases: Hindustan Coca Cola Beverages Pvt. Ltd. v. Commissioner of Income Tax – DBITA No. 205 of 2005, decided on 11-7-2017 by Rajasthan High Court. [ 2017 (7) TMI 1076 – RAJASTHAN HIGH COURT ] Union of India v. Chhattisgarh Estate Beverages Corporation 2015 (3) TMI 744 – CHHATTISGARH HIGH COURT In Union of India v. Chhattisgarh Estate Beverages Corporation 2015 (3) TMI 744 – CHHATTISGARH HIGH COURT, high court held that corporation being engaged in purchase and sale of liquor could not be considered as a clearing and forwarding agent for the State Government and therefore no Service Tax was payable. The court while deciding that no Service Tax was payable observed as follows: 9. It is not disputed that if the Corporation was engaged in sale and purchase of liquor for the State, then no Service Tax was payable. 10. The Tribunal has recorded a finding of fact that the Corporation was engaged in purchase and sale of liquor and could not be considered as clearing and for

= = = = = = = =

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

= = = = = = = =

2018 (5) TMI 1393 – Authority for Advance Ruling – Maharastra – 2018 (13) G. S. T. L. 350 (A. A. R. – GST) – Levy of GST – animal carcass in its natural shape in frozen state in different weight and size packed in LDPE bags – Interpretation of statute – interpretation of words 'unit container' as found in the schedule entries of the Notifications issued under the provisions of the IGST Act – Whether the whole (Sheep/Goat) animal carcass in its natural shape in frozen state in different weight and size packed in LDPE bags without mentioning the weight and one or two such LDPE bags further packed in HDPE bags being supplied to Army by applicant against tender shall qualify as product put up in “unit container”?
–
Held that: – Each frozen carcass is put in LDPE Bag (Primary Packing) which is not sealed & no weight is mentioned on such LDPE Bag. Thereafter, generally two of such LDPE Bags are put in HDPE Bag (Secondary Packing) and manually weight of two carcass is mentioned by marke

= = = = = = = =

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

= = = = = = = =

t cover frozen meat of sheep or goats when put up in unit container and bearing a brand name – the Schedule entry no.1 covers frozen meat of sheep or goats when put up in unit container and bearing a brand name – the impugned product would be covered by the schedule entry 1 of the Notification No.1-Integrated Tax (Rate) from 14-11-2017 onwards.
–
Ruling: – The bags being supplied to Army by the applicant against tender qualify as product put up in “unit container” – The impugned product would be covered by the schedule entry 4 of the Notification No. I-Integrated Tax (Rate) during the period 1-7-2017 TO 13-11-2017, the schedule entry 1 of the Notification No.1-Integrated Tax (Rate) from 14-11-2017 onwards. – GST-ARA-21/2017-18/B- 27 Dated:- 21-4-2018 – Shri B.V. Borhade, Joint Commissioner Of State Tax and Shri Pankaj Kumar, Joint Commissioner Of Central Tax PROCEEDINGS (under clause (xviii) of section 20 of the Integrated Goods and Services Tax Act, 2017 read with section 98 of t

= = = = = = = =

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

= = = = = = = =

y 1 shall be taxable under GST as per entry no. 4 of schedule II of the Notification no. 1/2017- Integrated Tax (Rate) dated 28th June 2017 upto 14th November 2017 and thereafter as per entry no. 1 of schedule I of the Notification No. 43/2017-lntegrated Tax (Rate) dated 14th November 2017 or fall under exemption list as per entry no 10 of Notification No. 2/2017- Integrated Tax (Rate) New Delhi dated 28th June 2017 upto 14th November 2017 and thereafter as per entry no. 9 of the Notification No. 44/2017-Integrated Tax (Rate) dated 14th November 2017? At the outset, we would like to make it clear that the provisions of both the CGST Act and the MGST Act are the same except for certain provisions. Therefore, unless a mention is Specification made to such dissimilar provisions, a reference to the CGST Act would also mean a reference to the same provision under the MGST Act. Further to the earlier, henceforth for the purposes of this Advance Ruling, a reference to such a similar provision

= = = = = = = =

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

= = = = = = = =

s is put in LDPE Bag (Primary Packing ) which is not sealed & no weight is mentioned On such LDPE Bag. Thereafter, generally two of such LDPE Bags are put in HDPE Bag (Secondary Packing) and manually weight of two carcass is mentioned by marker. For instance, if one of the carcass weights 7 Kg & other one weight 6.5 Kg, the HDPE Bag would bear the marking as "8 +7.5 =15.5 Kg". 3) The four digit HSN of the Subject Product is given below :- HSN Product 0204 Meat of Sheep or Goats 4) Provision relating to Taxability / Exemption under GST Law The IGST rate schedule as notified by the Government in respect of subject product is as under:- i. W.e.f. 1st July, 2017 till 14th November, 2017 a. Schedule II of the Notification No 1/2017- Integrated Tax (Rate) dated28th June 2017 deals with the products which are subject to 12% GST and entry No 4 which pertain to sheep/Goat meat respectively are provided below: Schedule II S No Chapter Heading Sub- heading Tariff item Descriptio

= = = = = = = =

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

= = = = = = = =

ii. An amendment made in the schedule II of Notification No. 1/2017 dated 28th June 2017- Integrated Tax (Rate) vide Notification No. 43/2017 – Integrated Tax (Rate) dated 14th November 2017, w.e.f 15th November 2017 onwards, the following entry inserted which relates to taxability on subject products. a. Schedule I of the Notification No 43/2011-Integrated Tax (Rate) dated 14th November 2017 deals with the products which are subject to 5% GST and entry NO. I which pertain to sheep/Goat meat respectively are provided below: Schedule 1 S No Chapter Heading Sub- heading Tariff item Description of goods 1 0204 All goods (other than fresh or chilled) and put up in container and,- (a) bearing a registered brand name: or (b) bearing a brand name on which actionable claim or enforceable right in court of law is available [other than those where any claim or enforceable right in respect of such brand name has been foregone voluntarily], subject conditions as in the ANNEXURE I] : b. Hence, the

= = = = = = = =

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

= = = = = = = =

een foregone voluntarily], subject conditions as in the ANNEXURE I] : A conjoint reading of the extracts of the above-mentioned notifications reveals that GST is chargeable only when the following conditions are met Till 14th November 2017, if product is "Frozen" and put up in "Unit Container" On or after 15th November 2017, if the product is "Frozen" and put up in "Unit Container and "Branded" Annexure B Statement containing the Applicant Interpretation or Law and Submission on issues on which Advance Ruling is sought 1. Section 9 of the Central Goods and Services Tax Act 2017 "9. (l) Subject to the provisions of sub-section(2) there shall be levied a tax called the central goods and services tax on all intra-state supplies of goods or services or both, except on the supply of alcoholic liquor for human consumption, on the value determined under section 15 and at such rates, not exceeding twenty per cent per cent., as may be notified b

= = = = = = = =

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

= = = = = = = =

Correspondingly, in exercise of the powers conferred by sub-section (1) of section 6 of the Integrated Goods and Service Tax Act, 2017, the Central Government via (b) Notification No.2/2017 -Integrated Tax (Rate) New Delhi dated 28.06.2017 has exempted, inter-State supplies of goods, from the whole of the integrated tax leviable thereon. Relevant extract is reproduced below : Schedule S No Chapter Heading Sub- heading Tariff item Description of goods 10. 0204 Meat of Sheep or goats, [other than frozen and put up in unit containers] 5. W.e.f. 15th November, 2017 onwards, Schedule I of the Notification No 43/2017-lntegrated Tax (Rate) dated 14th November 2017 deals with the products which are subject to 5 % GST and entry No 1 which pertain to sheep/Goat meat are provided below: Schedule I S No Chapter Heading Sub- heading Tariff item Description of goods 1 0202 All goods (other than fresh or chilled) and put up in container and,- (a) bearing a registered brand name: or (b) bearing a bra

= = = = = = = =

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

= = = = = = = =

ainer and,- (a) bearing a registered brand name: or (b) bearing a brand name on which actionable claim or enforceable right in court of law is available [other than those where any claim or enforceable right in respect of such brand name has been foregone voluntarily], subject conditions as in the ANNEXURE I/ : 8. Conditions for Taxability:- A conjoint reading of the extracts of the above-mentioned notifications reveals that GST is chargeable subject to fulfillment of conditions as tabulated below. W.e.f. from 1st July, 2017 till 14th November, 2017 Must be frozen Must be packed in unit container W.e.f. from 15th November, 2017 onwards Must be frozen Must be packed in unit container Must bear a brand 9. keeping in mind all three conditions extracted from the notifications for the taxability of the products. There is clarity on two conditions i.e. Product is frozen and branded, However Advance Ruling is requested on the Question whether the product is put up in unit container or not. 10

= = = = = = = =

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

= = = = = = = =

tive agent (such as a drug or antigen) required to produce a specific result. The Business dictionary defines the term to mean a definitive or determinate quantity adopted as a standard of measurement and exchange. Therefore, where the term unit is affixed to a container, it would mean a container containing a 'unit' of a particular commodity i.e. a determinate quantity of goods contained therein. It should be designed to contain such determinate quantity of units of goods. 11.2 In this background, let us analyse the meaning & scope of the term 'unit container'. 11.3 The interpretation of the expression 'unit container' has been a vexed issue in the context of Central Excise law as under the excise regime prevailing prior to GST. Food products put up on a 'unit container' were liable to excise duty. Therefore, in this regard, it is important to study the provisions under the old law and interpretation adopted by the Courts. 11.4 The expression 'u

= = = = = = = =

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

= = = = = = = =

expression unit container used in Tariff item IB means a container in which prepared or preserved food is intended to be sold by the manufacturer. It may be a small container like tin, can, box, jar, bottle or bag in which product is sold by retail or it may be a large container like drum, barrel, cannister in which the product is packed for sale to other manufacturer or dealers. In short unit container means a container, whether large or small, designed to hold a pre -determined quantity or number which the manufacturer wishes to sell whether to a wholesale or retail dealer or to another manufacturer. 11.7 In this background, in the context of old Central Excise Tariff, reference is placed on the following observations of the Special Bench of the Hon'ble CEGAT while interpreting the term 'unit container' in the case of Collector of Central Excise v. Himachal Pradesh Horticulture Produce Marketing & Processing Corporation Ltd., 1998 (34) E.L.T. 160 (Tribunal) = 1987 (7

= = = = = = = =

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

= = = = = = = =

ll. 46. The above observations on the methods of marketing of common consumer products, do not require any special knowledge because they are a matter of common experience. The tariff item and the finance Ministry s instructions are consistent with the general experience and practice as mentioned above. General experience would certainly show that prepared and preserved foods and the like, as they are ordinarily sold in the market, are packed in containers which contain a specific and clearly marked quality of the goods. The quantity may vary according to the product and the manufacturer. but even them there are many standard quantities common to different manufacturers. such as 100 gms, 500 gms, 1 kg, 100 ml, 200 ml, and 500 ml. Such products are sold in what may appropriately be called unit containers" which can conveniently contain that particular quantity. It is also a matter of common knowledge and experience that in such cases the container is normally nor returnable, and in

= = = = = = = =

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

= = = = = = = =

jab Ltd. v. Collector of Central Excise, 1990 (49) E.LT. 404 = 1990 (3) TMI 194 – CEGAT, NEW DELHI , the tribunal observed as below: We hold that there is no difference either in the entry in between 1B of the bold tariff and new tariff 2001.10 or in the issue involved in both the cases. Fallowing the ratio of the decision in the case of M/s. HPMC we hold that clearance in barrels does not amount to sale of the contents as put in a unit container. Accordingly, the goods in question are not classifiable under sub-heading 2001.10 but they are classifiable under sub-heading 2001.90. " 11.11 Relying on the above case law, the tribunal in the case of held that jerry cans of tomato puree of 35 litre capacity being supplied to manufacturers of tomato ketchup was not a unit container'. 11.12 However, in the case of CCE v Simba Chips, 1997 (96) E.L.T. 381 (Tribunal) = 1997 (7) TMI 330 – CEGAT, MUMBAI , the Tribunal held that the fact that packets did not bear indication of the weight o

= = = = = = = =

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

= = = = = = = =

;unit container' only to small containers which must have predetermined capacity of 1/2/3/4/ kg., and carry full particulars of the product i.e., date of the manufacture, name of the manufacturer, trademark, price, etc. If the intention of the legislature was to refer only to the small containers having predetermined capacity, it must have so provided specifically. Therefore, the words unit container' have to be Interpreted in such a manner so as to include not only small but also large containers. That the sale of pasta products in the big bags knows as LDPE and HDPE cannot be said to be a sale of bulk in loose as these bags contained fixed quantity of the product for sale to the distributor/customers. Similar view was observed in the decision of the Tribunal in the case of Surya Agrooils Ltd. vs. CCE [2005 (188) E.L.T 97 (Tri.- Del.) = 2005 (5) TMI 129 – CESTAT, NEW DELHI ] which was later affirmed by the Hon'ble Supreme Court in 2006 (199) ELT A183 = 2006 (4) TMI 554 – S

= = = = = = = =

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

= = = = = = = =

mean only small containers which must have predetermined capacity of 1/2/3/4/ kg., and carry full particulars of the product i.e., date of the manufacture, name of the manufacturer, trademark, price, etc. A big container designed to hold a pre-determined quantity of goods in bulk will also qualify as 'unit container'. (iii) That the sale of a product in big bags such LDPE and HDPE sacks cannot be said to be a sale of bulk in loose but would be a 'unit container' where these bags contain pre-determined quantity of the product for sale to the distributor/customers. However, where such bags don't contain a pre-determined quantity, the same will not qualify as unit container- For instance in the case of CCE vs. Shalimar Super Foods [2007 (210) ELT 695 (Tri. -Mumbai) = 2006 (11) TMI 56 – CESTAT, MUMBAI , the tribunal held that meat articles packed in loose plastic bags which were not in uniform quantities cannot be held to be a unit container. The bags in this case were

= = = = = = = =

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

= = = = = = = =

tained LDPE bags of 10Kgs each, which were standardized whereas in the present case there is no fixed quantity of mutton in the LDPE bags, it can weigh 7 kg or 6.5 kg i.e. the said HDPE bags cannot be said to be holding a predetermined uniform quantity. In a nutshell, the bags in the present case do not hold a pre-determined quantity of meat, It is clear from the above factual matrix that carcasses packed in the LDPE sacks and HDPE sacks would be in different weight and sizes. Further, we are also given to understand that there is no fixed quantity and size in which these carcasses are dispatched to the Army against tender. The said dispatches are made on the basis of the actual weight of the frozen carcasses. Furthermore, the consideration is charged by Ahmednagar District Goat Rearing and Processing from the Army on the basis of the weight. Therefore, there is no doubt that the said LDPE/ HDPE bags i.e., primary as well as secondary packing do not qualify as unit container. (iii) Fur

= = = = = = = =

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

= = = = = = = =

and packed as mentioned in the facts stated above sheet shall be liable to be taxed under GST or would it be treated as exempted? Point of view: In light of the discussion contained in Para 11.1 to Para 11.10, we are of the view that despatches made by the supplier in LDPE/ HDPE bags i.e. both primary as well as secondary will not be liable to tax under GST. " 03. CONTENTION – AS PER THE CONCERNED OFFICER The submission, as reproduced verbatim, could be seen thus- Submission dt. 14.03.2018 "Whether the whole (Sheep/Goat) animal carcass in its natural shape in frozen state in different weight and size packed in LDPE bags without mentioning the weight and one or two such LDPE bags further packed in HDPE bags being supplied to Army by applicant against tender shall qualify as product put up in "unit container". Officer Comments :- No – the whole (Sheep/Goal) animal carcass in its natural shape in frozen state in different weight and size packed in LDPE bags without men

= = = = = = = =

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

= = = = = = = =

he Notification no. 1/2017- integrated Tax (Rate) dated 28th June 2017 upto 14th November 2017 and thereafter as per entry no. 1 of schedule I of the Notification No. 43/2017-lntegrated Tax (Rate) dated 14th November 2017 or fall under exemption list as per entry no. 10 of Notification no. 2/2017-lntegrated Tax (Rate) New Delhi dated 28th June 2017 upto 14th November 2017 and thereafter as per entry no. 9 of the Notification No. 44/2017-lntegrated Tax (Rate) dated 14 November 2017 Officer Comments :-Yes -The products as mentioned in query 1 shall be taxable under GST as per entry no. 4 of schedule II of the Notification no. 1/2017 – Integrated Tax (Rate) dated 28th June 2017 upto 14th November 201 7 & thereafter as per entry no. 1 of schedule I of the Notification No. 43/2017-lntegrated Tax (Rate) dated 140' November 2017. It is not fall under exemption list as per entry no 10 of Notification no. 2/2017 -Integrated Tax (Rate) New Delhi dated 28th June 2017 upto 14th November 20

= = = = = = = =

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

= = = = = = = =

veals that the questions require us to interpret the words 'unit container' as found in the schedule entries of the Notifications issued under the provisions of the IGST Act. We begin the discussion as under- Question 1 Whether the whole (Sheep/Goat) animal carcass in its natural shape in frozen state in different weight and size packed in LDPE bags without mentioning the weight and one or two such LDPE bags further packed in HDPE bags being supplied to Army by applicant against tender shall qualify as product put up in "unit container"? The words 'unit container' have been defined similarly in both the Notification No.1-Integrated Tax (Rate) and Notification No, 2/2017- Integrated Tax (Rate) of the IGST Act as under – (i) The phrase "unit container" means a package, whether large or small (for example, tin, can, box, jar, bottle, or carton, drum, barrel, or canister) designed to hold a predetermined quantity or number, which is indicated on such pac

= = = = = = = =

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

= = = = = = = =

authorised representative:- Item No Articles/Services to be supplied Unit Quantity in Kgs Basic price per 100 Kgs (In Rs.) Total value at basic price (In Rs.) Taxes (CST/VAT) in % Total value with tax (In Rs.) (a) Meat Dressed Chilled/Frozen Kg 35,000 41,000/- 14350000.00 6 15211000.00 CONTRACT FOR SUPPLY OF MEAT DRESSED CHILLED/FROZEN AT RANGIA AND DELIVERY POINT BARAMA FOR THE PERIOD FROM 01 APR 2017 TO 31 MAR 2018 (BOTH DAYS INCLUSIVE) ON FORTNIGHTLY PAYMENT BASIS Rates tendered for delivery at Supply Point ASC Rangiya as and when ordered by OC Supply Company ASC, Rangiya or his authorised representative.- Item No Articles/Services to be supplied Unit Quantity in Kgs Basic price per 100 Kgs (In Rs.) Total value at basic price (In Rs.) Taxes (CST/VAT) in % Total value with tax (In Rs.) (a) Meat Dressed Chilled/Frozen Kg 18,000 42,600/- 7668000.00 6 8128080.00 Rates tendered for delivery at Supply Point ASC Rangiya as and when ordered by OC Supply Company ASC, Rangiya or his authorise

= = = = = = = =

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

= = = = = = = =

bid. VAT/CST Chilled Frozen – 6% Payment Terms 7. Bills & Payment, The bills will be presented by your firm every fortnight which will mention the basic cost of Meat Dressed Chilled/Frozen supplied, followed by the details of all levies & taxes paid by you separately. Contract Operating Officer will make 95% payment of the total billed amount including taxes through electronic transfer :- (a) 95% of Basic Cost. Contract Operating Officer will make the payment after verifying the quantity supplied. (b) 95% of Taxes and Lewes. 95% payment of the taxes and levies will only be paid by the Contract Operating Officer upon production of tax deposit receipts and certificates from Chartered Accountant of your firm and reconciliation with all connected documents." f. In the invoice raised on the Army, there is mention of the total number of bags supplied and the total weight contained in these bags on the basis of the statement in point e above. A perusal of all above makes us infe

= = = = = = = =

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

= = = = = = = =

ned persons from the Army are aware that each LDPF bag would carry one carcass and each HDPE bag would carry two carcasses. Thus, the bags are designed to hold a 'predetermined number'. i. The manner of indicating the weight would satisfy the requirement of the words 'predetermined number indicated on such package'. In view of all above, we are convinced that the impugned packing would satisfy the requirement of the definition of "unit container" as found in the Notification No.1-Integrated Tax (Rate) and Notification No. 2/2017- Integrated Tax (Rate) issued under the provisions of the IGST Act. In view thereof, the bags being supplied to Army by the applicant against tender qualify as product put up in "unit container". We find that the applicant has placed reliance on many case laws. Each case law rests on the facts of the referred specific case. And the facts in the instant case are not similar to the facts in the cases cited before us. We see tha

= = = = = = = =

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

= = = = = = = =

ed Tax (Rate) dated 28th June 2017 upto 14th November 2017 and thereafter as per entry no. 1 of schedule I of the Notification No. 43/2017-lntegrated Tax (Rate) dated 14th November 2017 or fall under exemption list as per entry no 10 of Notification No. 2/2017-lntegrated Tax Rate New Delhi dated 28th June 2017 upto 14th November 2017 and thereafter as per entry no. 9 of the Notification No. 44/2017- Integrated Tax (Rate) dated 14th November 2017? To answer the above question, we look at the schedule entries as have been contended to be applicable. Let us reproduce the same as under – Notification S. No. Chapter /heading/ Sub-heading / Tariff item Description of Goods Period Tax rate Notification no. 1/2017 Integrated Tax (Rate) dated 28th June 2017 4 (Schedule II) 02041 Meat of sheep or goats, frozen and put up in unit containers 1-2017 TO 13-11-2017 12% Deleted w.e.f 14.11.2017 1 (Schedule I) 0202, 0203, 0204, 0205, 0206, 0207, 0208, 0209, 0210 All goods [other than fresh or chilled],

= = = = = = = =

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

= = = = = = = =

voluntarily], subject to the conditions as in the ANNEXURE I] 14-11-2017 ONWARDS NIL The applicability of each of the entry could be discussed thus – FOR THE PERIOD 1-7-2017 TO 13-11-2017 1. Schedule entry no. 10 of the Notification No.2-Integrated Tax (Rate) does not cover frozen meat of sheep or goats put up in unit container. 2. Schedule entry 4 of the Notification No.1-Integrated Tax (Rate) covers frozen meat of sheep or goats put up in unit container. 3. In view thereof, the impugned product would be covered by schedule entry 4 of the Notification No.l-lntegrated Tax (Rate) during the period 1-7-2017 TO 13-11-2017. FOR THE PERIOD FROM 14-11-2017 ONWARDS 1. Schedule entry no.9 of the Notification No.2-Integrated Tax (Rate) has conditions regarding unit container and brand name. The applicant has stated that there is clarity on two conditions i.e. product is frozen and branded. We have seen above that the supply by the applicant qualifies as a product put up in "unit container

= = = = = = = =

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

= = = = = = = =

t, 2017 and the Maharashtra Goods and Services Tax Act, 2017) NO.GST-ARA-21/2017-18/B- 27 Mumbai, dt. 21/04/2018 For reasons as discussed in the body of the order, the questions are answered thus – Q.1 Whether the whole (Sheep/Goat) animal carcass in its natural shape in frozen state in different weight and size packed in LDPE bags without mentioning the weight and one or two such LDPE bags further packed in HDPE bags being supplied to Army by applicant against tender shall qualify as product put up in "unit container"? A.1 The question is answered in the affirmative. Q.2 Whether the products as mentioned in query 1 shall be taxable under GST as per entry no. 4 of schedule II of the Notification no. 1/2017- Integrated Tax (Rate) dated 28th June 2017 upto 14th November 2017 and thereafter as per entry no. 1 of schedule I of the Notification No. 43/2017- Integrated Tax (Rate) dated 14th November 2017 or fall under exemption list as per entry no 10 of Notification No. 2/2017-lnt

= = = = = = = =

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

= = = = = = = =

Goods and Services Tax – Started By: – Archna Gupta – Dated:- 20-4-2018 Last Replied Date:- 24-4-2018 – I have few small queries so please answer. The queries are:1. Advocates or any other person who is supplying goods/ services which are chargeable to GST under RCM would be required to take GST registration if they are receiving goods/ services from other person which are also liable to GST under RCM e.g., If advocate is receiving legal services from other advocate GTA are taking legal services from advocate or vice versa2. If a trader has its business in Delhi and trading in taxable goods but not registered because his aggregate turnover is below 20 lacs say his aggregate turn is only ₹ 2 lacs. Now he goes to Haryana for some exhibition there and he has to compulsorily register in Haryana as casual taxable person. The queries are Now is it compulsory for him to register in Delhi also or casual person registration has nothing to do with regular business. Will there be any diffe

= = = = = = = =

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

= = = = = = = =

ice from an Advocate of firm of Advocates, than GTA is required to take registration, if not taken, has to pay the GST and vice a versa, in terms of Section 24(iii) of CGST, Act, 2017. 2. Casual taxable person means a person who occasionally undertakes transactions involving supply of goods or services or both in the course or furtherance of business, whether as principal, agent or in any other capacity, in a State or a Union territory where he has no fixed place of business. 2.1 From above it is clear that a person should have a fix place of business in a state. A casual taxable person is one who has a registered business in some State in India, but wants to effect supplies from some other State in which he is not having any fixed place of business. Such person needs to register in the State from where he seeks to supply as a casual taxable person. Therefore, registration in a state is mandatory to become a casual taxable person. 2.2 aggregate turnover means the aggregate value of all

= = = = = = = =

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

= = = = = = = =

eply by Sh.Alkesh Jani Ji is really appreciable. Posting reply first matters a lot as it reflects original interpretation, original analysis & understanding of law.(insight) . – Reply By Alkesh Jani – The Reply = Thanks a lot Sh. Kasturiji Sir, as your words has encouraged me a lot – Reply By Archna Gupta – The Reply = Thank you so much Alkesh ji. Your reply is very helpful and cleared all my doubts.Thanks Kasturi ji and Susheel ji. – Reply By Archna Gupta – The Reply = Dear ExpertsI need to confirm three more things on advocate services. Please reply.1. If an advocate or firm of advocates is receiving legal services from senior advocate then that advocate or firm of advocates need to register in GST and pay tax on RCM.2. If any partner of firm of advocates is a senior advocate than if that firm provides legal services to another advocate or firm of advocates the what would be the legalities.3. Legalities in case of one senior advocate or firm of advocates (in which one partner is

= = = = = = = =

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

= = = = = = = =

Goods and Services Tax – Right to carry lottery business – Use of Kerala GST Act, 2017 and police power to interfere into the lottery business – practical difficulty – The petitioners should not be pr

= = = = = = = =

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

= = = = = = = =

Goods and Services Tax – Seizure of goods – incomplete E-Way bill – Section 129(1) of UP GST – Apparently there is a convention of the provision of the Act which mandates that the E-Way bill should be

= = = = = = = =

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

= = = = = = = =

Goods and Services Tax – Started By: – LAKSHMINARAYANAN TR – Dated:- 20-4-2018 Last Replied Date:- 23-4-2018 – Hi May I see expert opinion on availing ITC on pre-operative expenses when the outward supply includes both exempt and taxable. If the Input or Input services relate to exempt or taxable supply specifically, its apparent not to avail or avail ITC appropriately. But challenge comes when common input/input services and capital goods consumed well before commencement of commercial activity of the business, how to apply rule 42 or 43? Request expert opinion please best regards Durai – Reply By Rajagopalan Ranganathan – The Reply = Sir, Section 16 (1) of CGST Act, 2017 stipulates that every registered person shall, subject to such cond

= = = = = = = =

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

= = = = = = = =

10081001, 9811004443 – Reply By Ganeshan Kalyani – The Reply = The excess credit taken during the year can be paid with interest on or before September month of the subsequent financial year. Hence you may avail the credit now and when the year is over and you have the turover detail you can revise work and take corrective action. – Reply By CS SANJAY MALHOTRA – The Reply = Not starting commercial activity sometimes means trial run on product development taken but no supplies made. In such scenarios, ITC on input and input services are not eligible as no supply made. – Reply By KASTURI SETHI – The Reply = Sh.CS Sanjay Malhotra Ji, Sir, Thanks a lot for throwing light on the issue. – Reply By CASusheel Gupta – The Reply = Section 16 allows I

= = = = = = = =

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

= = = = = = = =

CS SANJAY MALHOTRA – The Reply = ITC is linked with supply which is main criteria in GST. Units avail ITC during factory set up considering that they shall be making supply of taxable goods. No one avails ITC if they know product is charged to nil GST. – Reply By CASusheel Gupta – The Reply = Respected Sanjay jiAgreed that No one avails ITC if they know product is charged to nil GST.My reply was restricted to that since during trial run there is no supply and in the absence of supply during trial run ITC is not allowed. Regards – Reply By LAKSHMINARAYANAN TR – The Reply = Dear All Many thanks for your valuable suggestions, interestingly many dimensions have come out in this forum. I would like some details to my original question based on

= = = = = = = =

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

= = = = = = = =

Goods and Services Tax – Started By: – Kusalava InternationalLimited – Dated:- 20-4-2018 Last Replied Date:- 26-5-2018 – Is GST applicable on Deputation of Salaries of Sister Company employees?If applicable what is the Rate? – Reply By KASTURI SETHI – The Reply = Salary is not subject to GST whether on deputation or on regular basis. Employer-employee relation does not lose its status during deputation. During deputation an employee works on behalf of his employer. – Reply By Ganeshan Kalyani –

= = = = = = = =

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

= = = = = = = =

Goods and Services Tax – GST – By: – Suriyanarayanan Iyer – Dated:- 20-4-2018 Last Replied Date:- 20-4-2018 – Canteen services under GST- an analysis of the advance ruling in Caltech Polymers Private Limited [ 2018 (4) TMI 582 – AUTHORITY FOR ADVANCE RULING – KERALA ] The Authority for Advance Ruling-Kerala has decided on 26/03/2018 that recovery of the expenses from the employees for the canteen services provided by a company would come under the definition of outward supply as defined in section 2 (83) of the CGST Act, 2017 and therefore will be taxable as a supply of service under GST. 2) The said decision is based on the interpretation of definition of business in section 2 (17) of the CGST Act by the authority and its conclusion that supply of food by the applicant company to its employees would definitely come under the phrase any activity or transaction in connection with or incidental or ancillary to sub- clause (a) occurring in sub- clause (b) ibid. 2.1) The definition of bus

= = = = = = = =

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

= = = = = = = =

6, proof of profit-motive is unnecessary to constitute business and that the transaction of supply of food and drink to the workmen in the canteen maintained by the assessee, in pursuance of the Factories Act and the Rules, were sales and constituted business for the purposes of the Act. 2.3) The apex court decision in Burmah Shell was, though holding the field and not explicitly overruled/reversed, came to be ignored by the apex court itself in respect of cases involving sale of unserviceable spares etcetera by State Transport Corporations. In such cases, the apex court went into the dominant object of service by the State Transport Corporations and held that sale of unserviceable parts etcetera by such transport corporations cannot be subjected to sales tax/VAT. The decision of the Delhi High Court reported as Commissioner of Sales Tax Versus Delhi Transport Corporation- 1996 (7) TMI 576 – DELHI HIGH COURT discusses about the dominant object test in respect of state transport corpora

= = = = = = = =

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

= = = = = = = =

t. 3.1) After noting the Burmah Shell decision of the Supreme Court and the Hyderabad Asbestos Cement Case approved therein, considering the subsequent decision of the Supreme Court in Northern India Caterers India Ltd- 1978 (9) TMI 154 – SUPREME COURT OF INDIA as well as the earlier decision in Raipur Manufacturing Co Ltd- 1966 (9) TMI 82 – SUPREME COURT OF INDIA, the full bench of the Madhya Pradesh High Court held that sale of food articles in the canteen were not exigible to tax. The review petition filed by the revenue against the said decision was dismissed by another three-member bench of the Madhya Pradesh High Court as per reports in 2004 SCC online MP 163. 4) A question can arise that the decisions against the revenue cited above are only in respect of VAT/sales tax on canteen sales whereas the CGST Act, 2017 is a comprehensive legislation for tax on both goods and services. 4.1) But the fact that the said CGST Act considers that services by an employee to the employer in the

= = = = = = = =

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

= = = = = = = =

g to composite supply has to be construed ejusdem generis only. That is, only if the supply in the canteen is by way of or as part of any intended service activity /business of employer, it can fall under the definition of composite supply . Reliance is placed on the judgement of the Bombay High Court in ANK Seals Versus Employees State Insurance Corporation- 2006 (2) TMI 687 – BOMBAY HIGH COURT wherein the Bombay High Court held that the phrase in any other manner whatsoever has to be construed ejusdem generis and acquisition of the undertaking by the central government will not fall within the sweep of the said phrase occurring after transfers that factory or establishment in whole or in part, by sale, gift, lease or license . 4.2.1) Thus, the reasoning of the Advance Ruling Authority that the supply of food and other articles in the canteen run by the employer due to the mandate under the Factories Act falls under composite supply for the purposes of GST seems to be stretching the d

= = = = = = = =

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

= = = = = = = =