Goods and Services Tax

The Principal Commissioner of GST & Central Excise, Chennai Versus C. Kamalakannan
Service Tax
2018 (9) TMI 262 – MADRAS HIGH COURT – 2018 (18) G. S. T. L. 589 (Mad.)
MADRAS HIGH COURT – HC
Dated:- 23-8-2018
Civil Miscellaneous Appeal No.35 of 2018 and CMP.No.441 of 2018
Service Tax
T. S. Sivagnanam And V. Bhavani Subbaroyan, JJ.
For the Appellant : Mr.T.L.Thirumalaisamy, SPC
For the Respondent : Mr.N.V.Balaji
ORDER
Judgment was delivered by T. S. Sivagnanam, J.
This appeal filed by the Revenue is directed against the order passed by the  Customs, Excise and Service Tax Appellate Tribunal, South Zonal    Bench, Chennai in Appeal No.ST/41802/2016-SM in Final Order No.40715 of 2017 dated 18.5.2017.
2. The above appeal is admitted on the following substantial question of law :
“In the facts and circumstances of the case, in the absence of documentary evidence to show that the assessee had acted in bona fide belief and in the light of evide

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d charges and value added tax on them. However, the distributors did not raise any separate sale document in respect of subsequent sales made by them and did not charge sales tax/VAT on such sales and thus, they acted as a commission agent on behalf of the principal by promoting their products.
5. On scrutiny of the records furnished by the assessee, the Original Authority stated that the assessee is not registered with the Department till 17.7.2012 whereas he received commission charges for the services provided under the category 'business auxiliary service' from 2007-08 to 2011-12. However, the assessee did not disclose the actual amount received as commission as reflected in his balance sheets in the ST-3 returns filed on 24.8.2012 for the period from 2007-08 to 2011-12.
6. It appears that certain clarifications were obtained by the assessee and a statement was also recorded and ultimately, the assessee was called upon to show cause as to why the service tax along with ce

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Section 73(3) of the Finance Act, 1994 since there is no fraud or suppression of facts, etc., and the entire service tax along with interest was paid before the Department and the Department had any clue that the appellant was providing taxable service and before issuance of the said show cause notice and that therefore, they were covered under Section 73(3) of the Finance Act, 1994. Apart from the above contention, the assessee also advanced other contention on facts and relied upon certain judicial precedents.
9. The Tribunal, vide final order dated 18.5.2017, disposed of the appeal in favour of the assessee by setting aside the order passed by the Adjudicating Authority as well as the First Appellate Authority and held that the demand beyond the period of limitation would not be sustainable. Hence, the Revenue is on appeal before us as against order of the Tribunal.
10. We have heard Mr.T.L.Thirumalaisamy, learned Senior Panel Counsel appearing for the appellant and Mr.N.V.Balaji,

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taxable services and certain Appellate Authorities hold otherwise, the Hon'ble Supreme Court, in the case of Continental Foundation Jt. Venture Vs. CCE, Chandigarh-I [reported in (2007) 216 ELT 177] considered the expressions used under the Proviso to Section 11A of the Central Excise Act, 1944 and held as follows:
“10. The expression 'suppression” has been used in the Proviso to Section 11A of the Act accompanied by very strong words as 'fraud' or “collusion” and, therefore, has to be construed strictly. Mere omission to give correct information is not suppression of facts unless it was deliberate to stop the payment of duty. Suppression means failure to disclose full information with the intent to evade payment of duty. When the facts are known to both the parties, omission by one party to do what he might have done would not render it suppression. When the Revenue invokes the extended period of limitation under Section 11-A the burden is cast upon it to prove suppr

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rticular stand which rules out application of Section 11A of the Act.
12. As far as fraud and collusion are concerned, it is evident that the intent to evade duty is built into these very words. So far as mis-statement or suppression of facts are concerned, they are clearly qualified by the word 'wilful', preceding the words “mis-statement or suppression of facts” which means with intent to evade duty. The next set of words 'contravention of any of the provisions of this Act or Rules' are again qualified by the immediately following words 'with intent to evade payment of duty.' Therefore, there cannot be suppression or mis-statement of fact, which is not wilful and yet constitute a permissible ground for the purpose of the Proviso to Section 11A. Mis-statement of fact must be wilful.
13. That being so, the adjudicating authorities were not justified in raising the demand and CEGAT was not justified in dismissing the appeals.
14. On the ground of adjudica

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ger period under the Proviso to Section 11A of the Central Excise Act, 1944 cannot be invoked.
15. The operative portion of the order in the decision in Charanjeet Singh Khanuja reads as follows :
“Another plea raised in these appeals is regarding limitation. It is the contention of the assessees that there was absolutely no suppression or mis-statement of facts or deliberate contravention of the provisions of the Finance Act, 1994 or of the Rules made thereunder with intent to evade payment of service tax. The Department's contention, on the other hand, is that the assessees neither obtained service tax registration nor did they declare their activities to the jurisdictional Service Tax Authorities nor did they file ST-3 return and, therefore, they are guilty of suppression of relevant facts and deliberate violation of the provisions of the Finance Act, 1994 and of the Rules made thereunder with intent to evade payment of tax. On considering the rival submissions on this point,

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oundation Joint Venture Vs. CCE [(2007) Taxmann.com 532], when there is scope for doubt in the mind of an assessee on a particular issue, the longer limitation period under Proviso to Section 11A(1) cannot be invoked and in our view, the ratio of this judgment of the Apex Court is applicable to the facts of these cases. Therefore, the longer limitation period of five years under Proviso to Section 73(1) of the Finance Act, 1994 would not be invocable and duty can be demanded for normal limitation period of one year from the relevant date.”
16. In the impugned order, the Tribunal had followed the decision in Charanjeet Singh Khanuja, which has attained finality. The Revenue does not dispute the fact that there were two views on the issue within the Department itself and this was considered by the New Delhi Bench of the Tribunal in a batch of appeals, which consisted of both appeals filed by the Department against the orders passed by the Commissioner (Appeals) as well as appeals filed

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APGST Act, 2017- Intelligence based Enforcement action- Tax payers allotted to Central Tax Authorities – GST Council decisions on Cross –Empowerment
CCW/GST/74/2015 Dated:- 23-8-2018 Andhra Pradesh SGST
GST – States
Circular No. CCT's Ref. No. CCW/GST/74/2015 Dated. 23rd August, 2018
Office of the
Chief Commissioner of State Taxes,
Edupugallu, Vijayawada.
Present :- Sri J.Syamala Rao, I.A.S.,
Sub :- APGST Act, 2017- Intelligence based Enforcement action- Tax payers allotted to Central Tax Authorities – GST Council decisions on Cross -Empowerment- Reg.
Ref :-1. Minutes of the 9th GST Council Meeting held on 16.1.2017.
2. Minutes of the Coordination meeting held on 29.5.2018 at CGST, Visakapatnam.
********
It is notice

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the State tax administration on the same basis as under the CGST and SGST Acts either under law or under Article 258 of the Constitution but with the exception that the Central tax administration shall alone have the power to adjudicate a case where the disputed issue relates to place of supply, or when an affected State requests that the case be adjudicated by the CGST authority and for such issues of export and import as may be discussed in the Law Committee of officers and brought back to the Council for decision:
Further in the coordination meeting of the Central Tax and State Tax authorities of Andhra Region the following decisions relate to Enforcement Activities are taken.
A) Intelligence based irregularities: –
The authority dete

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M/s Vasu Clothing Private Limited Through Shri Ajay Jain Versus Union Of India Through Ministry Of Finance
GST
2018 (9) TMI 118 – MADHYA PRADESH HIGH COURT – 2018 (19) G. S. T. L. J73 (M. P.)
MADHYA PRADESH HIGH COURT – HC
Dated:- 23-8-2018
W. P. No. 17999 of 2018
GST
P. K. Jaiswal And S. K. Awasthi, JJ.
Shri R. Gogoi and Shri Alok Barthwal, learned Counsel for the petitioner
Shri Prasanna Prasad, learned Counsel for the respondents
ORDER
Heard on the question of admission as well as for grant of interim relief.
Issue notice.
Shri Prasanna Prasad, learned Counsel accepts notice on behalf of respondents and, therefore, no further notice is required.
In respect of interim relief, learned Counsel for the petitioner

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To extend the due date for filing of FORM GSTR-3B for the month of July, 2018.
35/2018-State Tax Dated:- 23-8-2018 Maharashtra SGST
GST – States
Maharashtra SGST
Maharashtra SGST
COMMISSIONER OF STATE TAX, MAHARASHTRA STATE
GST Bhavan, Mazgaon, Mumbai 400 010,
dated the 23rd August 2018.
NOTIFICATION
Notification No. 35/2018-State Tax
MAHARASHTRA GOODS AND SERVICES TAX ACT, 2017.
No. JC(HQ)-1/GST/2018/Noti/Returns/ADM-8.- In exercise of the powers conferred by section 168 of the Maharashtra Goods and Services Tax Act, 2017 (XLIII of 2017) read with sub-rule (5) of rule 61 of the Maharashtra Goods and Services Tax Rules, 2017, the Commissioner of State Tax, Maharashtra State, on the recommendations of the Council, hereby

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Commissioner of Central Excise Delhi-III (now Commissioner of Goods and Services Tax, Gurugram) Versus M/s Chang Yun India Ltd.
Central Excise
2018 (8) TMI 1507 – PUNJAB AND HARYANA HIGH COURT – TMI
PUNJAB AND HARYANA HIGH COURT – HC
Dated:- 23-8-2018
CEA No.36 of 2018 (O&M)
Central Excise
MR. RAJESH BINDAL AND MR. AMIT RAWAL, JJ.
For The Appellant : Mr. Sourabh Goel, Advocatea
ORDER
RAJESH BINDAL J.
The appellant in the present appeal has challenged the order dated 05.06.2017 passed by the Customs, Excise and Service Tax Appellate Tribunal, Chandigarh arising out of Appeal No. E/395/2012, raising the following substantial questions of law:-
“(i) Whether the impugned order dated 05.06.2017 Annexure A-4 passed b

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benefit of CENVAT Credit for 'rent service', when admittedly, the part of premises has been sub leased to sister concern and therefore that part of service is not availed and does not have nexus with manufacturing process?
(iv) Whether Hon'ble CESTAT is justified in not considering the provisions of Rule 9 of CENVAT Credit Rules, 2004 which categorically provides for the documents on the basis of which CENVAT Credit may be claimed by the party?
(v) Whether the Ld. CESTAT has committed a grave error in allowing the appeal of the respondent and allowing CENVAT Credit claimed by the respondent on the basis of debit notes which does not find mention in Rule 9 of the CENVAT Credit Rules, 2004?
(vi) Whether in the facts and c

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COMMISSIONER, CENTRAL GST AND CENTRAL EXCISE VADODARA – II Versus M/s MEGHMANI FINCHEM LTD.
Central Excise
2018 (8) TMI 1451 – GUJARAT HIGH COURT – TMI
GUJARAT HIGH COURT – HC
Dated:- 23-8-2018
R/TAX APPEAL NO. 1043 of 2018
Central Excise
MR. AKIL KURESHI AND MR. B.N. KARIA, JJ.
For The Petitioner : Mr Nirzar S Desai (2117)
For The Respondent : Mr Paresh M Dave(260)
ORAL ORDER
(PER : HONOURABLE MR.JUSTICE AKIL KURESHI)
1. This Tax Appeal is filed by the department challenging the order of Customs, Excise and Service Tax Appellate Tribunal dated 31.07.2017. The issue arises in somewhat peculiar background. We may briefly record the facts:
2. The principal issue between the department and the respondent-manufacturer is with respect to the assessee's claim of Cenvat credit of service tax paid on sales commission. Such an issue was decided by Division Bench of this Court in case of Commissioner of Central Excise, Ahmedabad vs. Cadila Healthcare Ltd reporte

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the Tribunal on this very issue. The department obviously placed heavy reliance on the judgements of High Court in cases of Commissioner of Central Excise, Ahmedabad vs. Cadila Healthcare and Astik Dyestuff Pvt. Ltd vs. Commissioner of Central Excise and Customs. The assessees relied on the amendment to the definition of term “input service” and argued that the same would apply to all pending cases irrespective of the date of amendment.
4. In view of such facts, the options before the Tribunal were either to await the outcome of the department's appeal in case of Essar Steel India Ltd (supra) if the decision in such appeal was likely to be rendered in near foreseeable future which would in addition to reducing the effort of both sides would also in many cases eliminate one stage of litigation. However, if the Tribunal was of the opinion that the judgement of the High Court may not be available in near future or for any such other good reason, it would not possible or advisable to

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en to reopening of all the issues. This would lead to multiplicity of proceedings. The parties, i.e. the department or the assessee, as the case may be, would have to file fresh proceedings once the High Court disposes of the appeal in case of Essar Steel India Ltd. In the mechanism provided, the Tribunal has also left many gaps. For example, there is no clarity as to what time limit within which the parties would have to file fresh proceedings. The Tribunal merely stated that soon after the verdict either side can approach. This term “soon after the verdict” is not possible of any clear application. Further, we wonder what would happen if no appeal is filed as per the liberty granted by the Tribunal. Whether the decision against the losing party would achieve finality; in which case what would happen to the tax or the refund is not clear. At which point of time such finality would be presumed is not specified. All in all, this is the most unsatisfactory manner in which, such large num

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GST on Service provided to Foreign Company in India
Query (Issue) Started By: – Rahul Gawande Dated:- 22-8-2018 Last Reply Date:- 27-8-2018 Goods and Services Tax – GST
Got 4 Replies
GST
Hello,
I am IT Service provider. We provided service to a client of foreign company in India. We have to bill to foreign company who do not have any office in India. How do I bill them? Do I have to add GST, if so at what rate? They will be transferring payment in USD to our bank account. Do I have to pay any Currency Conversion charges to bank? If yes & what rate?
Please help.
Reply By Rajagopalan Ranganathan:
The Reply:
Sir,
You are providing the service to the client of foreign company who is located in India. The service is provided

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RUMORS ON GST ON EXTRA NEUTRAL ALCOHOL IMPACT CAPITAL MARKET
By: – Dr. Sanjiv Agarwal
Goods and Services Tax – GST
Dated:- 22-8-2018

During FY 2017-18, the industry witnessed highway sales bans, demonetization, GST, route-to-market changes in UP, West Bengal and Chhattisgarh. The alcoholic beverages industry in India is heavily regulated, with excise and other taxes forming an important source of revenue for state governments.
The rumors or expectations of inclusions and exclusions from Goods and Services Tax (GST) net have its toll on stock market prices of liquor manufacturing companies. And it work both ways to raise or lower the stock market prices of these companies. This was witnessed recently in stock market behavio

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d alcohol which is a major input used for production of potable alcohol meant for human consumption with 90 percent usage. An inclusion of ENA in GST would mean that profitability of all alco-beverages companies would take a hit. The overhang of possible inclusion of extra neutral alcohol within the ambit of the goods and services tax (GST) remains, and the potential impact from this could knock off 10% to 15% from EBITDA (operating profit before tax). However, while centre is keen to impose this levy, many states are opposed to it as they feel that to tax it is their right. Currently, states levy VAT on ENA.
ENA is a derivative of sugarcane molasses and used in a number of industries, from cosmetics to alcoholic beverages. Almost 80 per c

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y not suffice for sustained premiumisation in the event of pullback.
How does it impact share prices can be understood from stock market trends. For example, the share price of United Spirits declined upto 4 percent 2-3 days before GST Council meeting on speculation that Extra Neutral Alcohol may be brought under the GST ambit which will adversely impact profitability of alco- beverages segment. Going further, the prices witnessed a decline of upto 15 percent in one month prior to July meeting of GST Council. Same could be seen for Radico Khaitan Ltd., another major player and others.
Recently, a company sought Advance Ruling on this issue but the Authority for Advance Ruling declined to issue any ruling or opinion stating that GST Counci

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TRANS-1 CREDIT
Query (Issue) Started By: – SURYAKANT MITHBAVKAR Dated:- 22-8-2018 Last Reply Date:- 25-8-2018 Goods and Services Tax – GST
Got 2 Replies
GST
We have entered all traded Goods stock in 7A column under Trans-1 and avail the credit. While verifying the concern officer they insists to fill all data in 7B instead of 7A.
How we will rectify the same ?
Reply By ANITA BHADRA:
The Reply:
Amendment in Tran-1 can be made only on case to case basis, where on an application mad

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Application of GST for consultancy services given to US company
Query (Issue) Started By: – Rajendra Talati Dated:- 22-8-2018 Last Reply Date:- 27-8-2018 Goods and Services Tax – GST
Got 11 Replies
GST
Sir:
We registered our LLP firm in Mumbai last year Sep 17, and as we do not expect our turnover crossing 20L we do not have GST number and not applied for it. We got a contract for consulting a US company for setting up their operations in Ahmedabad. (Their Ahmedabad entity is existing but for different business). The contract size is less than 20L. Our contract is signed with US company in USD and invoices will be raised in USD. My questions are –
(1) Will GST applicable for invoices under this contract? (2) Do I need to take GST number? (3) Or should we raise invoice to their Indian establishment in INR and get paid?
Thanks – Rajendra
Reply By ANITA BHADRA:
The Reply:
Your contract is signed with US Company and you are providing services to US Company . This will

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hanks – Rajendra
Reply By KASTURI SETHI:
The Reply:
No benefit of threshold exemption limit on account of export turnover. Registration under GST is required irrespective of the quantum of turnover of export.
Reply By Alkesh Jani:
The Reply:
Sir/Madam,
In this regards, my view is that, import of goods or services shall be treated as “Inter-State” but nowhere, it is stated that export is to be treated as “inter-state”. Moreover, as per the Trade Notice No.9 of DGFT, the person can export the goods based on PAN Number. This implies that GSTIN is not necessary unless specified under Section 24 of CGST ACT,2017. Therefore, GSTIN is not required for export of goods or services, if the turnover, is less than as prescribed under the law.
Our experts may correct me if mistaken,
Thanks
Reply By KASTURI SETHI:
The Reply:
Sh.Alkesh Jani Ji, Your views are innovative and can be termed as though provoking.
Reply By Alkesh Jani:
The Reply:
Sir,
With due regards, I invite your special a

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s not required.
I request that counter view, if any, may please be with proper authority.
Thanks
Reply By ANITA BHADRA:
The Reply:
Dear Alkesh Sir
In response to your point :-
In this regards, my view is that, import of goods or services shall be treated as “Inter-State” but nowhere, it is stated that export is to be treated as “inter-state”
* Inter-State supply covered under (7(5) IGST act) . Export is treated as Inter-state supply under GST and IGST is charge on export.
*
Reply By Ramaswamy S:
The Reply:
Please refer to Section 7(5) of IGST Act according to which Export is to be considered as Inter State Supply.
If it is a supply it can be either Inter state of Intra state. Export is not an Intra State Supply. Consequently it falls under the Inter State Supply and that is the reason for Section 7(5) of IGST.
Registration under GST is mandatory for Inter state supplies.
No GST is payable on export of services.
However, since the point of supply is in the taxable terri

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Extension of the due date for filing of FORM GSTR-3B for the month of July, 2018.
F.1-11(91)-TAX/GST/2018 Dated:- 22-8-2018 Tripura SGST
GST – States
Tripura SGST
Tripura SGST
GOVERNMENT OF TRIPURA
FINANCE DEPARTMENT
(TAXES & EXCISE)
NO.F.1-11(91)-TAX/GST/2018
Dated, Agartala, the 22nd August, 2018
NOTIFICATION
In exercise of the powers conferred by section 168 of the Tripura State Goods and Services Tax Act, 2017 (Tripura Act No. 9 of 2017) read with sub-rule (5) of rule

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GST Filing Deadline Extended for Kerala, Mahe, and Kodagu Taxpayers; Extra Time to Avoid Penalties.
News
GST
Extension of last date for filing GST returns by taxpayers in Kerala, Mahe and Kod

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GSTR-3B Filing Deadline for July 2018 Extended to August 24 for All Taxpayer Categories.
News
GST
Extension of Last Date for filing GSTR-3B for July, 2018 extended till 24th August, 2018 for

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Extension of last date for filing GST returns by taxpayers in Kerala, Mahe and Kodagu extended
GST
Dated:- 21-8-2018

In view of the disruption caused due to severe floods in Kerala, Mahe (Puducherry) and Kodagu (Karnataka), the Competent Authority has extended the due dates for filing of the following GST returns by taxpayers registered in these areas:
Sl. No.
Return
Class of taxpayers registered in Kerala, Mahe (Puducherry) and Kodagu (Karnataka)
Extended due date
1
FORM GS

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Extension of Last Date for filing GSTR-3B for July, 2018 extended till 24th August, 2018 for all class of taxpayers
GST
Dated:- 21-8-2018

The last date for Filing of Return in FORM GSTR-

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GTA under both RCM & FCM Mechanism
Query (Issue) Started By: – Prakriti Mish Dated:- 21-8-2018 Last Reply Date:- 8-1-2019 Goods and Services Tax – GST
Got 14 Replies
GST
What would be the implications if a GTA has billed under both RCM and FCM.?
what would happen with the input taken in FCM ? Do we have to follow FCM ?
Reply By Ganeshan Kalyani:
The Reply:
GTA service supplier are exempted from GST registration. And if he wants to register then pay gst. Two rate option is available. Pay tax @12% with the benefit of input tax credit. Or pay tax @5% without availing input tax credit. If having registration and filing return is only costs the compliance.
Reply By KASTURI SETHI:
The Reply:
Heavens will not fall !!
Reply By

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Reply:
8.
Goods Transport Agency Service (GTA)
Allowed option of 12% GST with full ITC under forward charge. 5% GST with no ITC will also continue. (However, the GTA has to give an option at the beginning of financial year)
This is an extract of decisions taken by GST Council's 20th meeting held on 5.8.2017. As per this you cannot adopt hybrid procedure. GTA can wither opt for FCM or RCM. Regarding GTA Service, there is no change between pre-GST era and post-GST era. First liability is cast upon consignor or consignee and , thereafter, GTA comes into play. Practically, normally consignor or consignee pays the freight and they can take ITC after payment of GST in cash.
It is now crystal clear that you cannot opt for both mechanism

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, Thanks for liking and appreciating my reply on the issue.
Reply By Prakriti Mish:
The Reply:
Thank You Sethi Sir for the Reply.
Reply By Ganeshan Kalyani:
The Reply:
I agree with the views of Sri Kasturi Sir.
Reply By hr hr2:
The Reply:
Hello Sir,
A follow-up question:
-> If the GTA (Vehicle Owner) is currently registered under RCM and wishes to move to FCM in the next FY, how would the following cases be treated:
1. If the GTA places own vehicles directly to a manufacturer? (Freight + 12% needs to be charged?)
2. If the GTA places own vehicles through a broker, where broker is unregistered under GST, who needs to pay GST? Example- Goods manufactured by party A is being placed through a GTA party B who asks the broker for a veh

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Public Credit Registry (PCR) and Goods and Services Tax Network (GSTN): Giant Strides to Democratise and Formalise Credit in India (Dr. Viral V. Acharya, Deputy Governor, Reserve Bank of India, August 20, 2018 – at the Annual Global Banking Conference – FIBAC 2018 organised by Federation of Indian Chambers of Commerce and Industry (FICCI) and Indian Banks’ Association (IBA), Mumbai)
FEMA & RBI
Dated:- 21-8-2018

It is a pleasure to be with you all and share with you my thoughts on some recent developments that are expected to have transformative implications for our country. In particular, I wish to draw your attention to some major initiatives in gathering and analysing better credit data that can potentially have a huge impact in creating a financially healthy India.
It is a known fact that a large part of the Indian economy is informal. This year's Economic Survey has given us an estimate, sourced in large part from the implementation of the Goods and Services Tax

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t 1).4 In other words, there is financial under-penetration in India.
It is in this context that that I will share with you two giant strides being undertaken that will help India move towards more equitable and timely access to credit, especially to the underserved. While these strides are being undertaken independently, together they can democratise and formalise credit in India.
Public Credit Registry (PCR) for India
The first stride is the creation of a Public Credit Registry, or PCR in short. Last year in my speech5 at the Annual Statistics Day Conference in RBI, I focused on setting up a PCR in India. Till that time, the concept of PCR was not much discussed in our country, though a large number of countries had already established or were in the process of establishing PCRs. Today I am happy to quickly recount with you the progress that we have made in this direction thus far. The constitution of a High Level Task Force (HTF), under the chairmanship of Shri Y.M. Deosthalee, a

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ing all lender-borrower accounts without a size threshold. As of today, information on borrowings from banks, non-banking financial companies (NBFCs), corporate bonds or debentures from the market, external commercial borrowings (ECBs), foreign currency convertible bonds (FCCBs), Masala bonds, and inter-corporate borrowings are not available in a single data repository. The main objective of the PCR is to fill this lacuna and capture all the relevant information about a borrower, across different borrowing products, in one place. Moreover, significant parts of this registry of borrowing contracts and repayment history will be accessible to all stakeholders provided they too share their data with the PCR.
The HTF submitted its report6 on April 04, 2018 recommending that a PCR should be setup by the RBI in a phased and modular manner. The report of the task force has been placed in the public domain after the top management of the RBI discussed it and had it reviewed by its Legal Depart

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it scoring, the central bank could not precisely assemble data on the quality of the credit portfolio of banks' large borrowers at an aggregate level. The data are simply not being reported with integrity and full coverage in case of large corporate borrowers. That is where RBI's Central Repository of Information on Large Credits (CRILC), initiated in 2014, made a huge difference, even if it was somewhat late to be set up. CRILC provides a timely window on any degradation of credit of a large borrower at a bank to the central bank and to other banks having the same entity as a borrower. The Asset Quality Review (AQR) that followed in 2015 relied heavily on CRILC data to cleanse the Augean stables of massive and unrecognised non-performing assets (NPAs) that have saddled our banks. The credit information system, as a whole, has many such gaps which leave much scope for improvement.
In my speech in July last year, I had also provided another example of how research based on data from cr

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gal too. India can bring in a similar level of sophistication to its economic research through careful access to near-real-time and comprehensive credit data that a PCR would capture.
World Bank's Doing Business 20188 reports the coverage of the adult population by institutions gathering credit data in select countries, grouped by the existence of only Public Credit Registry (PCR), only Private Credit Bureaus (PCBs), and both PCR & PCBs (Table 1). It is to be noted that some countries have opted to have a PCR only for supervisory purposes, where they cover large credits only. It is also documented that the coverage of adult population by PCR and PCBs varies widely depending on the objectives set by the regulators as well as the prevailing socio-economic condition in these countries.
Table 1: Number of countries with Public Credit Registry (PCR) and / or Private Credit Bureaus (PCB)
Neither PCR nor PCB
Only PCR
Only PCB
Both PCR and PCB
24
52
70
44
Source: World Bank's Doing

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ver, India is one of the few countries to provide an authentication service atop these identity services. These identities can be used in a PCR to aggregate data about borrowers from across multiple institutions with a high degree of confidence in the accuracy of merging and referencing of data. Further, the PCR will be a single source of information that has veracity. It will make reporting for small financial institutions easier and also remove the inconsistencies that come from aggregation across different reporting formats of multiple financial institutions.
With a repository of such trusted data available, banks and other lenders will be able to take better credit decisions. It can help them recognize early warning signs of asset quality problems by being able to see performance on other credits. The principle of reciprocity is baked into a PCR. While the lending institutions will be mandated by law to share borrower information, most do it willingly, because, in turn, they want

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CR on the legal front.
1. Organization: The PCR is initially being set up within the existing RBI infrastructure. The Reserve Bank, being a statutory corporation, can do only those activities which are permitted by the Reserve Bank of India Act, 1934 or other legislations. In addition to its core central banking functions, the Reserve Bank also performs certain promotional functions. However, this promotional activity is limited to 'financial institution' only10. Since no financing activity is contemplated for the proposed PCR, it might be difficult to label PCR as a 'financial institution'. This takes it out of the purview of a promotion under the Reserve Bank of India Act, 1934.
Another option is to promote an organization for a matter incidental to the functions of the Reserve Bank11 – as part of the Reserve Bank of India Act, 1934 or Banking Regulation Act, 1949 or any other enactment. Collection of information, including credit information, from its regulated entities is an impo

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fically permitted. As the PCR will have to get information from different sources, the inability of the sources to share such information can be a constraint. To this end, the PCR will have a consent-based architecture.
The notice and choice framework to secure an individual's consent is fundamental to data processing practices in a digital economy. It is based on the act of an individual providing consent for certain actions pertaining to his/ her data. It is essential that users provide consent to an entity sharing data (the data provider) before they share data with an entity requesting access (the data consumer). The consent based architecture of the PCR will strengthen privacy of data subjects by ensuring that the data is accessible only to the data consumer, only for stipulated period of time and only for a stipulated purpose, as consented to by the user.
3. PCR Act: Having regard to the complexities discussed above, it is desirable to have a special comprehensive legislation,

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cs of how PCR proposes to augment the core credit information reported by regulated entities with linkage to other information sources and deliver the full potential of information to the stakeholders. For example, through the CIN it may connect to the company's financial statements. It should make alternate data, like utility bill payments records, available for credit decisions. This can significantly help to foster financial inclusion and democratise credit by allowing lending decisions to be based on all cash-flow activity of a borrower, even when physical asset creation has not yet taken place.
Goods and Services Tax Network
Let me now turn to a seemingly unrelated second stride being undertaken that can help directly address the information asymmetry problem in the credit market. It is one that most of you already know. So I don't want to spend time explaining it, but instead focus on how it can move in lock-step with the PCR in completing a rich journey for formalising credit

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ng them a powerful incentive to register, so they could secure input tax credits on these purchases.
The Input Tax Credit motivation is a strong push towards digitisation and formalisation of small businesses. Moreover, the acceptance of invoices by the buyers creates a trusted repository of invoices. We know they aren't just cooking their books; they have verified buyers at the other end who vouch for the invoice generated. This gives one a potentially penetrative view into the otherwise invisible 10 million businesses that are now on GSTN, uploading roughly 1 billion plus invoices every month13.
Source: https://www.gstn.org/ecosystem/
The GST ecosystem has a layer between the tax payer and the GST system (Chart 3). The GST Suvidha Providers (GSPs) are envisaged to provide innovative and convenient methods to taxpayers and other stakeholders in interacting with the GST systems. There will be two sets of interactions, one between the App user and GSP and the second between the GSP a

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itutions is that they are all digital-native. They have been designed as digital infrastructure, being able to support multiple use cases atop them, without being partial or overly prescriptive on any one use case. This is not happening in a vacuum. Much of this would not be possible if the other roadblocks to going digital weren't already solved. Other public digital infrastructure such as eKYC for knowing your customer or Unified Payments Interface (UPI) for digital payments are nudging users towards creating larger data footprints, and helping them indirectly improve their creditworthiness.
With this infrastructure in place, we expect the costs for on-boarding those users who are currently excluded by formal credit to nosedive. It will become feasible to serve a large number of customers, operating at a much lower average transaction size. Just like in the Fast-moving Consumer Goods (FMCG) sector, banking and access to credit too will be 'sachetized' to make it more accessible and

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deration of Indian Chambers of Commerce and Industry (FICCI) and Indian Banks' Association (IBA) on August 20, 2018 at Mumbai. A Theme Talk was also delivered on the subject at the 12th Annual Statistics Day Conference organised by the Reserve Bank of India at Mumbai on July 23, 2018.
2 Economic Survey 2017-18, Vol 1.
3 Ibid.
4 Data from https://stats.bis.org/statx/srs/table/j?m=A
5 A Case for Public Credit Registry in India – https://rbi.org.in/scripts/BS_SpeechesView.aspx?Id=1042
6 https://www.rbi.org.in/Scripts/BS_PressReleaseDisplay.aspx?prid=44133
7 https://www.bis.org/ifc/publ/ifcb41k.pdf
8 http://www.doingbusiness.org/data/exploreeconomies/
9 'The national credit bureau: A key enabler of financial infrastructure and lending in developing economies', McKinsey Working Papers on Risk, No. 14.
10 See: Section 17(8-AA) of the Reserve Bank of India Act, 1934.
11 See: Section 17(16) of the Reserve Bank of India Act, 1934.
12 ibid
13 Estimates available at: https://economict

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Inward remittance
Query (Issue) Started By: – J eswasr Dated:- 21-8-2018 Last Reply Date:- 29-8-2018 Goods and Services Tax – GST
Got 5 Replies
GST
Sir,
May I know the GST rates payable by agents for inward remittances received from overseas suppliers? Both IGST and CGST payable?
Thanks
Reply By Ganeshan Kalyani:
The Reply:
Pls eloborate your query to answer appropriately.
Reply By KASTURI SETHI:
The Reply:
It is inter-State service. IGST applicable. Rate of GST depends upon the nature of service being provided/received. Pl. elaborate your query for correct and complete reply as rightly pointed out by Sh.Ganeshan Kalyani Ji.
Reply By Rajagopalan Ranganathan:
The Reply:
Sir,
'Inward remittance' indicates that th

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Incomplete E-Way Bill Leads to Goods Detention: Courts Cannot Override Clear Legislative Mandates with Discretion.
Case-Laws
GST
Detention of goods with vehicle – incomplete e-way bill – What are the documents to be carried along with the goods? – The language and the legislative intent clear, courts, in the name of discretion, cannot do violence to the statutory mandate. Discretion smooths the edges, but does not cut corners – there are no interpretative ambiguity or legislative crevas

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M/s. S.M. Niryat Pvt. Ltd. Versus CGST-Kolkata
Service Tax
2018 (12) TMI 73 – CESTAT KOLKATA – TMI
CESTAT KOLKATA – AT
Dated:- 21-8-2018
Appeal No. ST/75952/2018 – FO/76526/2018
Service Tax
SHRI P.K. CHOUDHARY, MEMBER (JUDICIAL)
Shri Dilip Kumar Singh, CA for the Appellant (s)
Shri S. Mukhopadhyay, Suptd. (A. R.) for the Revenue
ORDER
PER SHRI P.K. CHOUDHARY
Heard both sides and perused the appeal records.
2. I find that the Assistant Commissioner of Service Tax Division-III Service Tax Commissionerate, Kolkata vide OIA No. 14/ST/DIVIII/ Kol/2014-15 dated 02/04/2014 had allowed the exemption by way of sanctioning an amount of Rs. 4,48,188/- claimed by the appellant as refund of whole of Service Tax paid on taxable specified services for export of goods against Shipping Bills in terms of Notification No. 41/2012-ST dated 29/06/2012 as amended.
3. The Revenue filed appeal before the First Appellate Authority.
4. The Ld. Commissioner (Appeals) allowed the

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gs are observed:
01. -that the claimant has certified on all the original copy of invoices/bills/challans in terms of para-3(h) of the said notification, since the amount of claim i.e. Rs. 4,48,148/- for refund is 0.47% of the total FOB value amounting to Rs. 95717088/- which is below 0.50% of the declared FOB value of export.
02. -that from the certification made on all the original copy of invoices/bills/challans, it is observed that the said claimant declared that they have received and used the specified services for export of the said goods by mentioning specific chipping bill nos. as well as taxable specified services.
03. -that from the certification made on all the original copy of invoices/bills/challans and in the declaration made in the Form- A1, it is observed that the said claimant declared that they have actually paid the service tax on the specified services to the respective service providers.
04. -that the said claimant sought for refund of whole of service tax amo

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) iii) 4432548 dt. 13.03.2013 (LEO Date 14.03.2013) iv) 4297347 dt.0503.2013 (LEO Date 13.03.2013) v) 4297347 dt. 05.03.2013 (LEO Date 13.03.2013) vi) 4298180 Dt.05.03.2013 (LEO Date 13.03.2013) along with all the documents furnished by the said claimant in support of their refund claim of service tax under Notification No.41/2012-ST dated 29.06.2012 and my findings are:
I.-that the said claimant filed the claim for refund of Service Tax paid on taxable specified service for export on 14.02.2014 for an amount of Rs. 4,48,188/- which I find has been filed within the stipulated time limit in terms of the said notification.
II.- that the said claimant has certified on all the original copy of invoices/bills/challans in terms of para-3(h) of the said notification, since the amount of claim i.e. Rs. 4,48,188/- for refund is 0.47% of the total FOB value amounting to Rs. 95717088/- which is not more than 0.50% of the declared FOB value of export.
III-that the said claimant filed their clai

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eign convertible currency in terms of para 4 of the said notification according to Final Commercial Invoice.
VII.-that the said claimant declared in their letter regarding non-availment of electronic refund of service tax from customs as per the said notification.
VIII.-that the said claimant submitted the claim papers accompanied by relevant documents and co-relation and nexus between input services and exports made for the said period of claim for refund as well as payment of Servie Tax made by them has been established in terms of the said notification read with Mof, DoR (TRU) Circular No.120/01/2010-ST dt.19.01.2010 and para VII of circular no. 112/06/2009-ST dt. 12.03.09.
IX-that the claimed amount of Rs. 4,48,188/- as refund of Service Tax paid on taxable specified services provided, as detailed at Annexure-A of the brief fact above, I find that services in respect of the said invoices mentioned at the brief fact above are the taxable specified services in terms of the said no

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M/s Kalpataru Ltd. Versus Commissioner of CGST, Mumbai
Service Tax
2018 (11) TMI 1460 – CESTAT MUMBAI – TMI
CESTAT MUMBAI – AT
Dated:- 21-8-2018
Appeal No. ST/86913/2018 – A/87125/2018
Service Tax
SHRI RAJU, MEMBER (TECHNICAL)
Shri Mehul Jivani, C.A. for Appellant
Shri M.P. Dixit, AC (AR) for Respondent
ORDER
Per: Raju
This appeal has been filed by M/s Kalpataru Ltd. against denial of CENVAT Credit of certain services received by them in relation to general insurance, repair and maintenance of motor vehicles and those utilized for staff welfare.
2. Learned C.A. for the appellant argued that they are not contesting the demand confirmed in respect of services used for staff welfare. He pointed out that two show-cause notices were issued, one for the period 2010 to 2014 and another for 2014-15. Both the notices were adjudicated by same original adjudicating authority but different first appellate authority. He pointed out that in respect of impugned show-cau

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d/intimated that, abiding to the show-cause notice they have admitted their liability and paid total liability of Rs. 11,05,801/- along with interest of Rs. 8,83,714/- vide Challan No. 05214 dated 05.11.2015 and 05218, 05216, 05213 all dated 05.11.2015. As the assessee has admitted the liability and paid the same along with interest. I am not discussing the admissibility/inadmissibility of individual services covered by the show-cause notice.”
2.1 He further pointed out that Commissioner (Appeals) has also not given any findings in respect of individual services in respect of which credit was taken and observed as follows: –
8. I have considered the submissions made by appellants which are available on records and findings and reasoning's and stand taken by the Adjudicating Authority. In this case appellant stated that they were eligible to avail/take CENVAT credit on the various employees and business related insurances charges as per the definition of the input service given in th

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para 25 onwards in respect of these very services.
4. I have gone through the rival submissions. I find that the Order-in-Original confirms the demand without given any specific finding on the admissibility/inadmissibility of individual services covered by the impugned show-cause notice by observing that the assessee had admitted the liability and paid the same along with interest. The assessee had indeed paid liability and informed the Joint/Additional Commissioner on 17.11.2015 about the payment made, however, on 29.2.2015 in its reply to the showcause notice contested all the issues before original adjudicating authority. In these circumstances, the observation of the original adjudicating authority to the effect that the appellants are not contesting the demand is incorrect. In so far as findings given in para 25 onwards are concerned, the same relate to a different show-cause notice and different period.
5. In view of the above, the impugned order is set aside and the matter is

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In Re: M/s. Automobile Corporation of Goa Limited.
GST
2018 (10) TMI 1044 – AUTHORITY FOR ADVANCE RULING, GOA – 2018 (18) G. S. T. L. 359 (A. A. R. – GST), [2019] 64 G S.T.R. 258 (AAR)
AUTHORITY FOR ADVANCE RULING, GOA – AAR
Dated:- 21-8-2018
ARN No. GOA/GAAR/1 of 2017-18/2018-19/1929
GST
ASHOK V. RANE AND S.K. SINHA, MEMBER
Person Present for Hearing : Shri Ragavendra Singh Butola, Chief Financial Officer alongwith Shri Rajesh Sukla, Head of Indirect Tax of Tata Motors
PROCEEDING
(Under Section 98 of the Goa Goods and Services Tax, Act 2017)
The present application has been filed under section 97 of the Goa Good and Services Tax Act, 2017 and the Central Goods and Services Tax, Act 2017 (hereinafter referred to as the SGST Act and CGST Act) by Automobile Corporation of Goa Limited, seeking an Advance Ruling in respect of the following question:
“Whether the activity of building and mounting of the body on the chassis by the Applicant will result in supply of

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esult in supply of goods under HSN 8707 or supply of services under HSN 9988? To examine the issue, the applicant had referred provision of section 2(68) and Schedule Il of the of the CGST and SGST Act.
As per section 2(68) of the CGST and SGST Act, the term job work means;
 “any treatment or process undertaken by a person on goods belonging to another registered person and the expression 'job worker' shall be construed accordingly.”
As per para 3 of the Schedule II of the CGST Act, which specifies certain activities to be treated as supply of goods or supply of services – 'Any treatment or process which is applied to another person's goods is a supply of service.
Hence as per the application the chassis is sent to the applicant for building body. The question arises for consideration is
1. Is the chassis complete without a body? -If the answer is affirmative then anything added more by anyone is the sale of goods.
2. If answer is negative, -It is a semi-finished goods then

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In this connection, it is relevant to refer explanation provided under section 143 of the CGST/SGST Act, 2017 which is read as under:
“For purpose of job work, input includes intermediate goods arising from any treatment or process carried out on the inputs by the principal or job worker.”
As per the ratio of the judgement held in case of Prestige Engineering (India) Ltd vs CCE on Meerut [1994 (73) ELT 497 (SC)] = 1994 (9) TMI 66 – SUPREME COURT OF INDIA, addition or application of items by job worker would not detract from the nature and character of his work.
GST law does not distinguish between raw material, finished goods and semi-finished goods. It talks about input and Capital goods. Even, semi-finished goods or intermediates are goods and in turn 'Input' by the principal or the job worker.
So, the argument of the applicant that they use their own material, hence, they should not be treated as job worker is not tenable under the provision of law.
Moreover, it is clarified t

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M/s. KTV Oil Mills Versus Commissioner of GST & Central Excise Madurai and Chennai
Service Tax
2018 (9) TMI 1665 – CESTAT CHENNAI – TMI
CESTAT CHENNAI – AT
Dated:- 21-8-2018
Appeal No. ST/251/2010, ST/269/2010, ST/595/2010 – Final Order Nos. 42298-42300/2018
Service Tax
Ms. Sulekha Beevi C.S., Member (Judicial) And Shri Madhu Mohan Damodhar, Member (Technical)
Shri Hari Radhakrishnan, Advocate for the Appellant
Shri S. Govindarajan, AC (AR) for the Respondent
ORDER
Per Bench
All these appeals relate to the same appellants, they are heard together and are disposed by this common order.
2. Brief facts are that the appellants are engaged in the manufacture of edible palm oil. Appellants were refining crude edible palm oil and selling the same under their own brand name 'ROOBINI'. They also refined crude edible palm oil belonging to others, affixed their brand name 'ROOBINI' on the packages and collected brand royalty commission of Rs. 100/- per MT from such c

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same. Hence appeal Nos.. ST/251/2010 and ST/269/2010. The appellant had paid up the amount of Rs. 1,74,782/- along with interest of Rs. 19,545/- totaling to Rs. 2,03,355/-. They preferred refund claim for the said amount, which was rejected by the original authority vide order dated 31.10.2008. In appeal, the Commissioner (Appeals) upheld the same. Hence Appeal No. ST/595/2010.
3. Today, when the matter came up for hearing ld. counsel Shri Hari Radhakrishnan submitted that they are not contesting the demand of Rs. 1,02,139/- under Intellectual Property Right relating to appeal No. ST/251/2010. However, the appellant is praying for relief from penalties on the ground that the dispute is one of interpretation.
3.1 In respect of Appeal No. ST/269/2010, the appellants are not pressing the demand of service tax under Intellectual Property Right for the normal period of limitation. However, it is contended that the extended period of limitation was invoked in this case; that penalties als

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ed with. However, we find merit in the contention put forward by the appellant regarding penalty. As the issue was interpretational, the penalties imposed in this regard vide Order-in-Original No. 5/2008 dated 15.9.2008 is set aside. So ordered.
6.1 In respect of Appeal No. ST/269/2010, the service tax demand on Intellectual Property Right has also been conceded for the normal period. The said demand has already been confirmed and the extended period has been set aside by Commissioner (Appeals) vide Order-in-Appeal No. 113 & 114/2010 dated 31.3.2010, against which the appeal filed by the Department was dismissed on monetary grounds by the Tribunal. We find that it is not the case that the appellant had informed the department about these transactions in ER-I returns. This being so, the extended period, in our view, can very well be invoked and hence the entire demand of service tax of Rs. 1,74,782/- with interest thereon is not being interfered with. However, taking into consideration

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Seeks to extend the due date for filing of FORM GSTR-3B for the month of July, 2018
CT/LEG/GST-NT/12/17/750 Dated:- 21-8-2018 Nagaland SGST
GST – States
Nagaland SGST
Nagaland SGST
GOVERNMENT OF NAGALAND
OFFICE OF THE COMMISSIONER OF STATE TAXES
NAGALAND: DIMAPUR
Dated Dimapur, the 21st August, 2018
NOTIFICATION- 13/2018
In exercise of the powers conferred by section 168 of the Nagaland Goods and Services Tax Act, 2017 (4 of 2017) read with sub-rule (5) of rule 61 of the Naga

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In Re: M/s. Coffee Day Global Limited,
GST
2018 (9) TMI 1042 – AUTHORITY FOR ADVANCE RULINGS, KARNATAKA – 2018 (17) G. S. T. L. 121 (A. A. R. – GST), [2019] 64 G S.T.R. 139 (AAR)
AUTHORITY FOR ADVANCE RULINGS, KARNATAKA – AAR
Dated:- 21-8-2018
AAR No. KAR ADRG 21/ 2018
GST
SRI. HARISH DHARNIA, AND DR. RAVI PRASAD. M.P. MEMBER
Represented by: Sri S Vishnumurthy, Chartered Accountant
ORDER UNDER SUB-SECTION (4) OF SECTION 98 OF CENTRAL GOODS AND SERVICE TAX ACT, 2017 AND UNDER SUB-SECTION (4) OF SECTION 98 OF KARNATAKA GOODS AND SERVICES TAX ACT, 2017
M/s Coffee Day Global Limited, 23/2, 6th Floor, Vittal Mallya Road, Bangalore – 560 001, having GSTIN number 29AABCA5291P1Z3, have filed an application, on 18.01.2018, for 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, in form GST ARA-01. They also enclosed copy of challan for Rs. 5,000/- bearing CIN number SBIN18012900060425

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ut tax credit and it would not apply in the circumstances if the supplier wants to avail input tax credit. If the restaurateur avail input tax credit, the transaction would get classified under Sl.No.35 of Notification No.11/2017 and chargeable to tax at 18% (CGST – 9% and SGST – 9%). Hence the restaurateur has the option of paying output tax @ 5% without availing input tax credit or paying output tax @ 18% by availing input tax credit. Therefore the applicant filed this instant application seeking advance ruling on the following issue:
“Whether the applicant is entitled to pay GST @ 18% (CGST-9% and SGST-9%) and claim input tax credit?”
PERSONAL HEARING: / PROCEEDINGS HELD ON 30.01.2018.
4. The Applicant submitted power of attorney, issued by Sri. Jayraj C Hubli, Director, M/s Coffee Day Global Ltd., authorizing Sri. S Vishnumurthy, Chartered Accountant to represent the applicant before the Authority for Advance Ruling in connection with the instant application for Advance Ruling.

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n the case of State of Kerala Vs Builders Association of India [(1997)104 STC 134 (SC)] = 1996 (11) TMI 355 – SUPREME COURT OF INDIA].
5.3 Holding the notification under reference as mandatory would render it being violative of Article 14 of the Constitution of India (which guarantees equality before law) and violative of Section 16(1) of CGST Act'2017, which provides for input tax credit.
5.4 Restaurants inside Five Star hotels will be eligible for input tax credit. This would mean that persons consuming it there would end up paying lower than what they pay in stand alone restaurants, which have to treat the tax paid on inputs & input services as cost of supplies being made.
5.5 Reduction is made by invoking the powers in Section 9, which does not confer any power to reduce the rate of tax.
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. S Vishnumurthy, Chartered Acc

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ccommodation services provided by Hotels, Inn, Guest House, Club and the like 
74
 
996312
Camp site services 
75
 
996313
Recreational and vacation camp services 
76
Group 99632
 
Other accommodation services  
77
 
996321
Room or unit accommodation services for students in student residences
78
 
996322
Room or unit accommodation services provided by Hostels, Camps, Paying Guest and the like 
79
 
996329
Other room or unit accommodation services nowhere else classified 
80
Group 99633
 
Food, edible preparations, alcoholic and non-alcoholic beverages serving services  
81
 
996331
Services provided by restaurants, cafes and similar eating facilities including takeaway services, room services and door delivery of food 
82
 
996332
Services provided by Hotels, Inn, Guest House, Club and the like including room services, takeaway services and door deli

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umn (3) of the Table in the notification, falling under Chapter, Section or Heading of scheme of classification of services as specified in column (2).
8.2 The restaurant services provided by the applicant are squarely covered under serial number 7 of the aforesaid Notification.
8.3 The entries at serial number 7 of the aforesaid Notification were amended through Notification No 46/2017 -Central Tax (Rate) dated 14th November, 2017 levying a central tax of 2.5% on restaurant services as provided by the applicant under the condition that credit of input tax charged on goods and services used in supplying the service have not been taken. The entry is reproduced below for ease of reference:
(ii) against serial number 7,-
(a) for item (i) in column (3) and the entries relating thereto in columns (3), (4) and (5), the following shall be substituted, namely:-
(3)
(4)
(5)
“(i) Supply, by way of or as part of any service or in any other manner whatsoever, of goods, being food or any ot

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service has not been taken [Please refer to Explanation no. (iv)].”;
We also find that in the same Notification the following explanation is provided:
Explanation.- For the removal of doubt, it is hereby clarified that, supply, by way of or as part of any service or in any other manner whatsoever, of goods, being food or any other article for human consumption or drink, where such supply or service is for cash, deferred payment or other valuable consideration, provided by a restaurant, eating joint including mess, canteen, whether for consumption on or away from the premises where such food or any other article for human consumption or drink is supplied, other than those located in the premises of hotels, inns, guest houses, clubs, campsites or other commercial places meant for residential or lodging purposes having declared tariff of any unit of accommodation of seven thousand five hundred rupees and above per unit per day or equivalent shall attract central tax @ 2.5% without any

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al well -being services; and other miscellaneous services including services nowhere else classified).  
9
–
The various services covered under the scope of Heading 9997 as per the Annexure to Notification 11/2017 are reproduced below for reference.
700
Heading 9997  
 
Other services  
701
Group 99971  
 
Washing, cleaning and dyeing services  
702
 
999711 
Coin-operated laundry services 
703
 
999712 
Dry-cleaning services (including fur product cleaning services) 
704
 
999713 
Other textile cleaning services 
705
 
999714 
Pressing services 
706
 
999715 
Dyeing and colouring services 
707
 
999719 
Other washing, cleaning and dyeing services nowhere else classified 
708
Group 99972  
 
Beauty and physical well-being services  
709
 
999721 
Hairdressing and barbers se

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als by persons 
722
 
999799 
Other services nowhere else classified 
A reading of the above classification of services makes it clear that the applicant contends that his services shall fall under serial number 722 under the category of other services not elsewhere classified.
9. The question put forth by the applicant is “Whether the applicant is entitled to pay GST @ 18% (CGST @ 9% and SGST @ 9%) and claim input tax credit?”. The rate of tax is notified in Notification 11/2017-Central Tax (Rate) dated 28th June 2017. The scheme of the Notification is such that the rate of tax is described in direct conjunction with the classification of the service represented by the Chapter, Section or Heading under which the relevant service falls. Further the explanation given under serial number 4 of the notification reads “Reference to “Chapter”, “Section” or “Heading”, wherever they occur, unless the context otherwise requires, shall mean respectively as “Chapter,

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r services which are not specifically described under any other entry in the Annexure. The services provided by the applicant are classifiable under Heading 9963 and such services covered under heading 9963 are squarely covered under serial number 7 of the Notification. As the services provided by the applicant are covered under a specific heading and the Notification carves out a specific rate of tax for that heading, the same shall be applicable to the applicant. Serial number 35 would qualify for invocation only in respect of services that do not find classification elsewhere. Therefore the applicant is covered by serial number 7 and not 35.
9.2 In this regard the applicant has argued that the words 'provided that' (refer para 7.3 above) give them an option to not to avail concessional rate of 5% and avail input tax credit. In this context we find the explanation given in Notification 46/2017 (para 7.3 above) relevant. The explanation clearly stipulates that '…..shall attract cen

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