Goods and Services Tax

2018 (7) TMI 1331 – AUTHORITY FOR ADVANCE RULING – UTTAR PRADESH – 2018 (14) G. S. T. L 299 (A. A. R. – GST) – Classification of supply – Manufacturing food as take away only with no sitting facility, is a restaurant service or manufacturing of goods? – scope of 'supply'. – Held that:- Since the supply of cooked food is mentioned in the Schedule-II (Sr. no. 6(b)) it is a supply of service.
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Rate of GST under the composition scheme will be 5% (i.e. 2.5% under CGST and 2.5% under SGAT). – Order No. 1 Dated:- 21-3-2018 – Shri Dinesh Kumar, Member and Sanjay Kumar Pathak, Member ORDER Manufacturing food as take away only with no sitting facility, is a restaurant service or manufacturing of goods. 6. Composite supply : The following compo

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joints which are providing a sitting facility. Nothing is said about only counter sale joints. Also in my opinion, our activity sore closely resembles the definition of Manufacture u/s 2(72) of the GST Act 2017 as we are processing a raw material and bringing into a new product. We are not providing any service so we should be considered a manufacturer I request you to kindly look into the matter and provide your decision regarding whether we fall under Restaurant Service with Rate of Tax @ 5% under Composition Scheme or under Manufacturer with Rate of Tax @ 1% under Composition Scheme 7. Scope of supply – (1) For the purposes of this Act, the expression supply: includes – (d) the activities to be treated as supply of goods or supply of ser

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2018 (7) TMI 312 – CESTAT KOLKATA – TMI – Penalty u/s 11AC – no suppression of facts – more than one SCN on same issue, however, the facts were all disclosed in first SCN – whether the non-mentioning of same facts in subsequent SCN, which were mentioned in first SCN would amount to suppression of facts? – Held that:- The principles as laid down in the cases of Nizam Sugar Factory v. Collector of Central Excise, A.P. [2006 (4) TMI 127 – SUPREME COURT OF INDIA] is squarely applicable to the facts of the present case, where it was held that When the first SCN was issued all the relevant facts were in the knowledge of the authorities. Later on, while issuing the second and third show cause notices the same/similar facts could not be taken as suppression of facts on the part of the assessee as these facts were already in the knowledge of the authorities.
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Since an earlier show cause notice dated 30.09.2013 was issued for the earlier period in respect of the same subject matter, it ca

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her unit (at Pune) for consumption of the same in production of other articles leading to short payment of Central Excise duty. The adjudicating authority confirmed the demand of ₹ 10,75,967/- along with interest and imposed equal penalty under section 11AC of the Act. On appeal, the Commissioner(Appeals) set aside the penalty imposed on the assessee. Hence the present appeal by the Revenue before the Tribunal. 2. Ld.Supdt.(AR) appearing on behalf of the Revenue reiterates the grounds of appeal filed by the Revenue. 3. Ld.Counsel appearing on behalf of the Respondent assessee filed copies of the show cause notices issued as under:- SCN No & Date Period Demand, Rs O-in-O No. & Date Status 34/ADC/2013 : 30 9 2013 Sept 2008 to March 2011 6,66,680/- + Interest + Penalty 18/JC/CE/Kol- IV/Adjn/2014 : 07052014 Paid Entire Duty, Interest + 25% Penalty Issue closed 36/ADC/2015 : 03/11/2015 2011-12 & 2012-13 10,75,967/- +interest+ 100% Penalty 59/JC/CE/Kol- IV/Adjn/16 : 20/12/2

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f duty, I find it is the case of the appellant that there had been no contravention of the provisions of Rule 8 of the Valuation Rules, 2000 in as much as they had paid the duties on the basis of 110% of the cost of productionof each of the goods as ascertained on the basis of cost data available with them at the time of removal of the goods from their factory. Actual cost data for any goods can be ascertained only after close of the relevant year and that they cannot be, and hence are not, available at the time of removal of the goods any time during the year. Therefore, as per general practice in the trade, duties are paid at the time of removal of the goods on the basis of data available with them at the time of their clearances and shortfall if any are paid subsequently when final cost data are ascertained after close of the relevant year and on obtaining CAS-4 Certificate from specified authorities. Therefore, differences between the costs that are determined after close of the ac

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al duty in full with due interest under intimation to the Department vide their letter dated 06.03.2014 before issuance of impugned notice, which shows their bona fide intention. I further find that the impugned goods were cleared on the basis of stock transfer to the appellant s other unit at pune. That being the position, there cannot be any intention to evade payment of duty in a revenue neutral situation, since whatever duty is paid by the appellant is available as cenvat credit to its other unit receiving the goods along with the duty payment documents. I find that neither any credible evidence been adduced by the Department in support of the allegation of suppression with intent to evade duty nor has the aspect of such allegation been established clearly in the impugned order with corroborative evidence. Therefore, I am of the view that suppression of fact with intent to evade duty on their part is not tenable. 6. I am of the considered view that the principles as laid down in th

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2018 (6) TMI 1127 – AUTHORITY ON ADVANCE RULINGS, KARNATAKA – 2018 (13) G. S. T. L. 228 (A. A. R. – GST), [2018] 2 GSTL (AAR) 100 (AAR) – Levy of GST – Composite supply – natural bundle of services – Sub-contract – Whether supply of turnkey Engineering, Procurement & Construction (EPC) Contract for construction of solar power plant wherein both goods and services are supplied can be construed to be a Composite Supply in terms of Section 2(30) of CGST Act, 2017? – If Yes, Whether the Principal Supply in such case can be said to be ‘Solar Power Generating System’ which is taxable at 5% GST? – Whether benefit of concessional rate of 5% of solar power generation system and parts thereof would also be available to sub-contractors?
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Whether supply of turnkey EPC Contract for construction of solar power plant wherein both goods and services are supplied can be construed to be a Composite Supply in terms of Section 2(30) of CGST Act, 2017? – Held that:- The different goods and /or servic

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nent of PV Modules is procured by the owner himself. Therefore the same cannot be construed as a principal supply by the applicant. Therefore this question does not remain relevant.
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Whether benefit of concessional rate of 5% of solar power generation system and parts thereof would also be available to sub-contractors? – Held that:- The sub-contractor is an individual supplier and the rate of GST applicable depends on the type of supply and no concessional rate of GST is provided to sub-contractor on the basis of main contractor. Hence the supply made by sub-contractor need to be viewed as an individual supply and thereby the appropriate rate of GST has to be applied.
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Ruling:- The major component (PV Module) said to have been constituting 70% of the whole project can not be construed to be supplied by the applicant consequent upon High Sea Sale of the said product and hence it cannot be construed to be a principal supply of the project and thereby cannot be a composite suppl

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e solar photovoltaic plants for supply of power generated. The contracts are for supply of goods as well as services. The applicant has sought advance ruling in respect of the following questions: a) Whether supply of turnkey Engineering, Procurement & Construction ( EPC ) Contract for construction of solar power plant wherein both goods and services are supplied can be construed to be a Composite Supply in terms of Section 2(30) of CGST Act, 2017. b) If Yes, Whether the Principal Supply in such case can be said to be Solar Power Generating System which is taxable at 5% GST. c) Whether benefit of concessional rate of 5% of solar power generation system and parts thereof would also be available to sub-contractors. 4. The applicant furnishes, in exhibit II to the application, some facts relevant to the stated activity: a. The applicant is an EPC contractor & enters into contract with various developers who desire to set up and operate solar photovoltaic plants for supply of power

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tting up of the solar power plant as well as transmission lines for transmission of the electricity generated up to the storage or the GRID. e. There may be a single lump sum price for the entire contract for supply of both goods and services and payment terms may be defined depending on various milestones. The applicant also provided a diagrammatic illustration of the solar power system. 4. The applicant, in Exhibit III to the application, has furnished their understanding of rate of tax / exigibility in respect of the impugned transaction, on the basis of the following grounds: 4.1. Legal provisions and applicability 4.1 . 1 Rate of solar power generating system Under GST regime, various rates have been prescribed for goods and services. Per, Notification No. 1/2017 – Integrated tax (Rate) dated 28 Jun 2017, solar power generating systems and parts for their manufacture are taxable at 5%. The relevant entry reads as follows: Chapter Heading Description 84 or 85 or 94 Following renewa

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o a recipient consisting of two or more taxable supplies of goods or services or both, or any combination thereof, which are naturally bundled and supplied in conjunction with each other in the ordinary course of business, one of which is a principal supply'. Section 2(90) defines principal supply as -principal supply means the supply of goods or services which constitutes the predominant element of a composite supply and to which any other supply forming part of that composite supply is ancillary'. Further, mixed supply has been defined under the Act as mixed supply means two or more individual supplies of goods or services, or any combination thereof, made in conjunction with each other by a taxable person for a single price where such supply does not constitute a composite supply . Hence, for mixed supply there should be a single price and entire contract gets taxed at the supply with highest rate of tax. 4.1.3 Concept of works contract Works contract has been defined under

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contract (including_ services, portion) should be taxable at 5%. 4.2. Ambit of composite supply 4.2.1. Wide ambit of term 'Composite Supply' Composite Supply has been defined in Section 2(30) of the Central Goods and Services Tax Act, 2017 as 'composite supply means a supply made by a taxable person to a recipient consisting of two or more taxable supplies of goods or services or both, or any combination thereof which are naturally bundled and supplied in conjunction with each other in the ordinary course of business, one of which is a principal supply;' Further, Principal Supply has been defined in Section 2(90) of the CGST Act as 'principal supply means the supply of goods or services which constitutes the predominant element of a composite supply and to which any other supply forming part of that composite supply is ancillary' Thus, principal supply refers to the supply which is the predominant element in a composite supply. Illustration as provided in GST la

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turally bundled c) The taxable supplies should be supplied in conjunction with each other d) One taxable supply should be a principal supply In such case, the supply which is the principal supply is treated as the main supply and the entire transaction is taxed as per the principal supply. In the present case, the Applicant would like to submit that the main intent of the contract is provision of the solar power generation system which consists of various components such as modules, structures, inverter transformers, cables, SCADA, transmission lines, etc. Services like civil construction are merely incidental to provision of such goods and form an ancillary part of the contract. It is submitted that service portion of the contract is only -10 to 15% and balance is supply of goods. This also substantiates the fact that provision of services is incidental to supply of goods and hence, the supply of goods should form the principal supply and the entire contract should be taxed as supply

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enerating system'. 4.2.2. Wide ambit of term 'solar power generation system' The term 'solar power generating system' has not been defined under GST. Solar power generating system generally are the systems which absorb sunlight and convert it into electricity which can be put to further use. Solar power system has been defined under Solar Power – Grid connected Ground Mounted and solar Rooftop and metering Regulation 2014 issued by State of Goa. Solar power system as per the regulation means 'a grid-connected solar generating station including the evacuation system up to the Grid inter-connection point'. Typically the term system has a wide ambit. As per the Oxford Dictionary, the definition of the term 'system is -a complex whole, a set of things working together as a mechanism or interconnecting network . Similarly, the system is defined in Chambers 20th Century Dictionary as anything formed of parts placed together or adjusted into a regular and conne

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he whole system is a Solar Power Generating System and is entitled for the benefit of notification. Therefore, the denial of benefit of notification by the adjudicating authority is not sustainable. The impugned order is set aside and the appeals are allowed'. Further, in the case of Bangalore Tribunal in the case of B.H.E.L. vs. Commissioner of Central Excise, Hyderabad it was held that In the present case, the appellants have claimed exemption in respect of inverter charger card as solar power generating system. The appellants actually manufactured SPV lantern. The above lantern required electricity for its working. It is possible to convert solar energy to electricity with the help of inverter charger manufactured by the appellants. The Dy. General Manager has certified that the inverter merger constitutes solar power generating system as it performs the function of generating the required high frequency AC power from Sunlight with, the help of SPV module and supplying it to the

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Section 66F (3) of the Finance Act, 1994 (the Finance Act') two rules have been prescribed for determining the taxability of such services The rules prescribed are explained as under: 1. If various elements of a bundled service are naturally bundled in the ordinary course of business, it shall be treated as provision of a single service which gives such bundle its essential character' 2. If various elements of a bundled service are not naturally bundled in the ordinary course of business, it shall be treated as provision of a service which attracts the highest amount of service tax. The concept of naturally bundled services was explained in the Education Guide issued by the CBEC in the year 2012 (the Education Guide'). The relevant extract of the Education Guide is reproduced as under for case of reference: Bundled service means a bundle of provision of various services wherein an element of provision of one service is combined with an element or elements of provision of an

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ry course of business would depend upon the normal or frequent practices followed in the area of business to which services relate. Such normal and frequent practices adopted in a business can be ascertained from several indicators some of which are listed below – * The perception of the consumer or the service receiver. If large number of service receivers of such bundle of services reasonably expect such services to be provided as a package then such a package could be treated as naturally bundled in the ordinary course of business. * Majority of service providers in a particular area of business provide similar bundle of services. For example, bundle of catering on board and transport by air is a bundle offered by a majority of airlines * The nature of the various services in a bundle of services will also help in determining whether the services are bundled in the ordinary course of business. If the nature of services is such that one of the services is the main service and the oth

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be drawn: * In case more than two supplies are supplied together wherein one of the supply is principal supply would qualify as composite supply. * Further, goods supplied under the composite supply are supplied in conjunction with each other. Also, such composite supply is supplied in the ordinary course of business. * The composite supply would qualify as supply of the principal supply. Taxes would be applicable as on such principal supply. Drawing reference to the above, it is submitted that the customer perceives the entire contract is for supply of solar power generating system as the intent of both the parties is supply of the goods/ system which would help in generation of electricity. Hence, the entire contract (both goods and services) and bundled and linked wherein the main intent is provision of the goods which constitute solar power generating system. 4.2.4. Global Jurisprudence – Meaning of Composite Supply The concept of 'composite supply' is a global concept and

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rately there can be little doubt that the sale of the completed vehicle is a single supply. Like a motor vehicle, spectacles are customarily bought as a completed article and in such circumstances are treated as such by the purchaser. The cost that either the frame or the lenses may be purchased separately is not to the point. Similarly the fact that one component, the lenses, is GST-free or that one component is subject to a discount does not alter the characterisation. • In the case of Saga Holidays, Stone J focused on the 'social and economic reality' of the supply and found that there was a single supply of accommodation and the adjuncts to that supply (including the use of the fitrniture and facilities within each room, cleaning and linen services, access to common areas and facilities such as pools and gymnasiums and various other hotel services such as porterage and concierge) were incidental and ancillary to the accommodation part of the supply.' Per the above,

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rded as ancillary to a principal service if it does not constitute for customers an aim in itself but a means of better enjoying the principal service supplied'. Per the above principal, in the present case also, what the customer wishes or intends to obtain is the main supply of solar power generating system and services are only a means to enjoy the same and hence, services are incidental to the main supply of goods. 4.2.4.3. United Kingdom Under the UK VAT laws, a multiple supply (also known as a combined or composite supply) involves the supply of a number of goods or services. The supplies may or may not be liable to the same VAT rate. If a supply is seen as insignificant or incidental to the main supply, then for the purposes of VAT it is usually ignored – the liability is fixed by the VAT rate applicable to the main supply (or supplies). In the case of Tumble Tots (UK) Ltd v R & C Commrs [2007] BVC 179. Members of a playgroup received a T-shirt (children's clothing i

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osite supply. Further, in terms of Section 2(90) of CGST Act, principal supply means the supply of goods or services which constitutes predominant element of a composite supply. Further, as per Section 8, in case of composite supply, the taxes applicable on principal supply would be applicable on the composite supply. In the present case, the intention of both the parties is to supply the whole of solar power generating system in totality which consists of various goods and services are incidental to provision of such goods. What the customer wants is a functional solar power system and services such as erection, commissioning etc are only a means to provide the main supply of goods. 4.4. Contract does not constitute works contract It is submitted additionally that works contract is also defined as a composite contract and includes a contract for building, construction, fabrication, completion, erection, installation, fitting out, improvement, modification, repair, maintenance, renovat

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fit would also be available to sub-contractor 4.5.1 In certain cases, the turnkey contractor engages various sub-contractors (manufacturers/supplies/ sub-contractors) who further supply the goods to such contractor or engage in provisioning of certain portion of the turnkey contract. 4.5.2 Further, there may be cases wherein the Developer divides the EPC contract between two separate EPC contracts of construction of solar power generation system. 4.5.3 Notification no. 1/2017-Integrated Tax (Rate), which provides concessional rate on solar Power generating system does not specify the persons who would be eligible for concessional rate of 5% i.e. developer, EPC contractor or manufacturer/ supplier/ sun-contractor. 4.5.4 Since the concessional rate of 5% is provided to renewable energy products and parts thereof, the same should be applicable to all suppliers providing such products as long as it can be established (through certification or otherwise) that these are to be used in solar p

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ncipal supply. Other services, erection, testing and commissioning of solar power plants are ancillary to the supply of solar power generating system and hence, entire contract (including all goods as well as services) should qualify as solar power generating system taxable at 5%. * Concessional rate of 5% for supply of solar power generating system or its parts should also be available to sub-contractors. Further to above submissions, we most respectfully pray that: 1. Allow us to reiterate all the submissions without prejudice to one another; 2. Grant a personal hearing put forth our contentions and explain our submissions before passing any order in this regard; 3. Allow us to amend, alter and add to the present reply; 4. Allow us to produce additional documents and other material during the time of Personal Hearing; and 5. In that behalf pass such other orders and directions as may be deemed proper and necessary. PERSONAL HEARING: / PROCEEDINGS HELD ON 09.02.2018. 5. The Applicant

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ing the applicant made the following additional written submissions. 6.1 The Applicant has put forth the argument that the proposed transaction/ Contract is one for supply of 'Solar Power Generating System' as a whole and hence the rate of GST should be 5%. In furtherance to the same the applicant puts forth as follows: (a) The intent of the parties is always for supply of Solar Power Generating system as a whole. (b) The applicant has also submitted a draft contract and draws attention to Clause B of the draft contract which provides that B. Owner has appointed the Contractor for supply of the Solar Power Plant which includes engineering, design, procurement, supply, development, testing and Commissioning of the Plant as per scope defined in relevant schedule of this Contract, as per Applicable Law and Technical Specifications (c) The Applicant has further drawn reference to Schedule I of the agreement which defines the scope of work to be executed by the Contractor i.e. the A

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tract does not constitute works contract. The following submissions have been made in this regard. (a) Works contract is defined as a composite contract and includes a contract for building, construction, fabrication, completion, erection, installation, fitting out, improvement, modification, repair, maintenance, renovation, alteration or commissioning of any immovable property wherein transfer of property in goods (whether as goods or in some other form) is involved in the execution of such contract. (b) Therefore, in order to determine whether the supply made by the Applicant is of works contract, it is imperative to understand (i) the essence of the contract and the intention of the parties involved in the contract to determine whether the parties intend to undertake works contract or supply of solar power plant and (ii) whether the activities are undertaken on an immovable property for the contract to qualify as works contract. Essence of the contract and intention of the parties i

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no intention to make such plant permanent, the foundation would not change the nature of the plant and make it an immovable property. (c) The applicant has relied upon the following judgments in furtherance of their arguments. (i) Sirpur Paper Mills Ltd., vs. Collector of Central Excise, Hyderabad (1998 1 SCC 400) (ii) Commissioner of Central Excise v. Solid and Correct Engg Works & Ors. (2010 (175) ECR 8 (SC)), (iii) Sri Velayuthaswamy Spinning Mills v. The Inspector General of Registration and the Sub Registrar (2013 (2) CTC 551), (iv) Perumal Naicker v. T. Ramaswami Kone and Anr. (AIR 1969 Mad 346) In view of the aforesaid judgments, the applicant submits that in the instant case, the solar power plants supplied by the Applicant is commissioned and installed only for the purpose of better functioning of the plant and are capable of being removed and transferred from one place to another. Hence, the fact that the plant is firmly but not permanently attached to the land means that

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99 – CX4 dated 15 January, 2002 ('the Circular), after realizing the anomaly in case of plant and machinery assembled at site, issued the Circular clarifying the following: (i) If items assembled or erected at site and attached by foundation to earth cannot be dismantled without substantial damage to its components and thus cannot be reassembled, then the items would not be considered asmoveable and will, therefore, not be excisable goods. (vi) If any goods installed at site (example paper making machine) are capable of being sold or shifted as such after removal from the base and without dismantling into its components/parts, the goods would be considered to be movable and thus excisable. The mere fact that the goods, though being capable of being sold or shifted without dismantling, are actually dismantled into their components/parts for ease of transportation etc., they will not cease to be dutiable merely because they are transported in dismantled condition….. Relying on

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T Act defines composite supply to mean 'a supply made by a taxable person to a recipient consisting of two or more taxable supplies of goods or services or both, or any combination thereof, which are naturally bundled and supplied in conjunction with each other in the ordinary course of business, one of which is a principal supply'. Section 2(90) defines principal supply as principal supply means 'the supply of goods or services which constitutes the predominant element of a composite supply and to which any other supply forming part of that composite supply is ancillary'. Further, in terms of Section 8 of the CGST Act, it has been clarified that a composite supply comprising two or more supplies, one of which is a principal supply will be treated as supply of such principal supply. The relevant para of Section 8 of the CGST Act provides as follows: 8. Tax liability on composite and mixed supplies. – The tax liability on composite or a mixed supply, shall be determined

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ers and switches. This is due to the fact that PV module is a packaged, connect assembly of typically 6xio photovoltaic solar cells, which constitute the photovoltaic array of a photovoltaic system that generates and supplies solar electricity. In other words PV modules are nothing but an assembly of solar cells that helps in converting solar power into electricity. Hence, PV module is the most important component of solar power generating system and therefore, would squarely qualify as the 'principal supply'as per the provisions of the GST law. Accordingly, it is submitted that the GST rate of PV modules which is 5% should be applicable on the whole of the contract. Reference can be made to the CERC Order dated 23 March 2016 involving determination of Benchmark Capital Cost Norm for Solar PV Power Project for FY 16-17. In the said case also, the CERC, of the total cost of the project including land cost, PV Modules cost is considered as 62%. A copy of the said order has also b

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rt of the contract. The same shall not in any manner exceed the lumpsum price agreed between the Parties and also does not in any manner dilute the responsibility of the Contractor… Further, there is a definition in the draft agreement, Major Equipment [1.1.67] which clearly identifies PV Modules as the Major Equipment Major Equipment(s) means PV solar modules which is an assembly of solar cells that helps in converting solar power into electricity and all other Equipments specified in Schedule 3 (Contract Price and Payment Milestones) for facilitation of Payment under this Contract; Reference in this regard is made to the judgment of Delhi Tribunal in the case of Rajasthan Electronics & Instruments Ltd. vs. Commr. Of C. Ex., Jaipur wherein a Solar Photovoltaic Module was held to be a Solar Power Generating System. Relevant extract of the judgement is reproduced below for ease of reference: 7. The adjudicating authority admitted the fact that Solar Photovoltaic Module is a Solar

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r divides the contract between two separate contracts of construction of solar power generation system. Notification no. 1/2017-Integrated Tax (Rate), which provides concessional rate on solar power generating system does not specify the persons who would be eligible for concessional rate of 5% i.e. developer, contractor or manufacturer/ supplier/ sub-contractor. Since the concessional rate of 5% is provided to renewable energy products and parts thereof the same should be applicable to all suppliers providing such products as long as it can be established (through certification or otherwise) that these are to be used in solar power generation system. This would also be in line with practice under erstwhile excise law wherein benefit was extended to sub-contractors also through MNRE certification. 7. The applicant has concluded their presentation as follows: I. that the Applicant is engaged in the business of supply of 'solar power generating system' and the same should be liab

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ly of turnkey Engineering, Procurement & Construction ( EPC ) Contract for construction of solar power plant wherein both goods and services are supplied can be construed to be a Composite Supply in terms of Section 2(30) of CGST Act, 2017. 2. If Yes, Whether the Principal Supply in such case can be said to be Solar Power Generating System which is taxable at 5% GST. 3. Whether benefit of concessional rate of 5% of solar power generation system and parts thereof would also be available to sub-contractors. 9. Question No. 1 is ―Whether supply of turnkey Engineering, Procurement & Construction ( EPC ) Contract for construction of solar power plant wherein both goods and services are supplied can be construed to be a Composite Supply in terms of Section 2(30) of CGST Act, 2017?‖. 9.1 Composite Supply is defined under Section 2(30) of the CGST Act, 2017 as a supply made by a taxable person to a recipient consisting of two or more taxable supplies of goods or services or

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ain intent is provision of the goods which constitute solar power generating system. 9.3 We thus proceed as follows to determine whether the intended supply constitutes a Composite Supply. 9.3.1 The scope of contract, as mentioned at clause 3 of the draft contract provides that the contractor (Applicant) shall supply all the equipment as per the terms of the said contract and in accordance with the execution schedule, to the plant site and complete development, installation and commissioning of the works in accordance with the technical specifications, applicable law, applicable permits and the terms of the contact, in addition to the detailed drawings / documents finalized during engineering. This clause indicates that the Applicant would supply all the required goods and also provide services related to installation and commissioning of the project. 9.3.2 The Applicant submits that the major component of Solar Power System is Solar Photovoltaic module (PV module), which comprises aro

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ransferred to the owner by way of High Sea Sale. Therefore the legal title of the goods shifts to the owner and also the Bill of Entry to clear goods from Customs Area is filed by the owner and not the Applicant. This indicates that the owner has procured the goods and made them available to the Applicant. This is in contrast to what the Applicant has claimed. Once the owner files the Bill of Entry at the time of import they become the titleholders in respect of those goods. After clearance of the goods once they are made available to the Applicant for further action of installation etc, then the Applicant cannot claim to have supplied the goods. 2. As per clause 1.1.45 of the contract ―Free Issue Equipment‖ is defined as Photovoltaic Modules to be supplied by the owner to the contractor as free issue equipment at the plant site for the installation and commissioning of the solar power plant. Hence it is clearly evident from this clause that the major equipment i.e PV modul

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ontract as discussed in the preceding para indicates that the major portion of contract, i.e. the PV module constituting 60% – 70% of the total contract value, is supplied by the owner and not the contractor. Therefore the contractor cannot claim that they will supply the PV Module & thereby there is no principle supply involved in the instant case. 9.3.6 This further raises the point whether the supply envisaged in the draft contract qualifies to be a composite supply. The different goods and /or services supplied should be naturally bundled. However here the draft contract opens up the question whether such supplies are indeed bundled or not. The draft contract clearly demonstrates that in such projects the owner can procure the major equipments involved on their own also and the contractor may carry out the supply and services portion in respect of the remaining portion. Thus the concept of natural bundling does not apply to the present envisaged supply. In other words the envis

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e of supply and no concessional rate of GST is provided to sub-contractor on the basis of main contractor. Hence the supply made by sub-contractor need to be viewed as an individual supply and thereby the appropriate rate of GST has to be applied. 10. In view of the foregoing, we rule as follows RULING 1. Question No. 1-The major component (PV Module) said to have been constituting 70% of the whole project can not be construed to be supplied by the applicant consequent upon High Sea Sale of the said product and hence it cannot be construed to be a principal supply of the project and thereby cannot be a composite supply. 2. Question No. 2- The question does not not remain relevant on account of answer to question number 1. 3. Question No. 3- The supply made by sub-contractor need to be viewed as an individual supply and thereby the appropriate rate of GST has to be applied depending on the specific nature of supply. – Case laws – Decisions – Judgements – Orders – Tax Management India

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GST – States – F-10- 13/2018/CT/V (26) – Dated:- 21-3-2018 – Government of Chhattisgarh Commercial Tax Department Mantralaya, Mahanadi Bhawan, Naya Raipur Notification Naya Raipur, Dated: 21.03.2018 No. F-10- 13/2018/CT/V (26) – In exercise of the powers conferred by Section 99 the Chhattisgarh Goods and Services Tax Act, 2017, State Government, hereby Constitutes Chhattisgarh Appellate Authority for Advance Ruling for Goods and Services Tax, from the date of issue of this notification and appo

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2018 (6) TMI 518 – AUTHORITY FOR ADVANCE RULINGS, GUJARAT – 2018 (14) G. S. T. L. 147 (A. A. R. – GST), [2018] 2 GSTL (AAR) 96 (AAR) – Job-work or not? – Activity of manufacturing industrial gases viz. Oxygen, Nitrogen and Argon – transition to GST regime – Valuation – related party transaction or not? – Whether the activity undertaken by the applicant amounts to “Job Work” as defined under Section 2(68) of the Central Goods and Services Tax Act, 2017? – What is the value on which the applicant is liable to pay GST?
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Held that:- It is clear that the Atmospheric Air used by the applicant belongs to M/s. Essar. Thus, all the inputs viz. Atmospheric Air, Industrial Water and Electricity belongs to M/s. Essar – As all the necessary ingredients of the definition of ‘job work’ are fulfilled in this case, the activity of manufacturing of industrial gases viz. Oxygen, Nitrogen and Argon by the applicant amounts to ‘Job Work’ as defined under Section 2(68) of the said Acts – it is eviden

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s. Essar to the applicant for the agreed activity to be carried out by the applicant – The value of supply by the applicant shall be the transaction value, which is the price actually paid or payable for the said supply as Job Charges, in view of sub-section (1) of Section 15 of the said Acts.
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Ruling:- The activity undertaken by the applicant falls under the ‘Job Work’ as defined under Section 2(68) of the Central Goods and Services Tax Act, 2017 and the Gujarat Goods and Services Tax Act, 2017 – The applicant is liable to pay Goods and Services Tax on the value of supply determined under Section 15(1) of the Central Goods and Services Tax Act, 2017 and the Gujarat Goods and Services Tax Act, 2017. – Advance Ruling No. GUJ/GAAR/R/2018/7 (In Application No. Advance Ruling/SGST&CGST/2017-18/AR/16) Dated:- 21-3-2018 – Mr. R.B. Mankodi, Member And Mr. G.C. Jain, Member For The Applicant : Shri Rohit Jain, Advocate RULING The applicant M/s. INOX Air Products Private Limited (herein a

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city and industrial water remains with M/s. Essar and M/s. Essar is also the owner of the gases manufactured by the applicant using the said electricity and water. 2.2 It is submitted that the gases so produced are further captively consumed by M/s. Essar in its steel manufacturing operations. In order to ensure continuous availability of the gases, the applicant s gas plant is located at a designated land within the premises of the Steel Plant. The applicant has obtained a separate GST registration for this premises. 2.3 The mechanics of the transaction and consideration payable by M/s. Essar to the applicant for the manufacture and supply of gases is as follows :- a. The applicant will raise a daily invoice for the fixed and variable job work charges for each product, based on the quantum cleared on that day; b. At the end of each month, the applicant will raise a supplementary invoice for additional consideration for the gases supplied in that month, equivalent to the difference bet

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ant was acting as a job worker for Essar, the valuation was carried out as per Rule 10A of the Central Excise (Determination of Price of Excisable Goods) Rules, 2000 (herein after referred to as the Central Excise Valuation Rules, 2000 ). Further, since the gases were captively consumed by M/s. Essar, Rule 8 of Valuation Rules was also pertinent, which mandated the payment of Central Excise Duty on the cost of manufacturing plus a ten per cent mark-up. In light of Rule 10A read with Rule 8 of the Valuation Rules, the applicant discharged the Central Excise Duty on an assessable value comprising of the following: (a) Job Work Charges payable by Essar to applicant; (b) The value of electricity and industrial water provided by Essar; (c) Notional rent for the designated land; (d) Escalation on account of WPI / CPI Plus a ten per cent mark-up on the aforesaid. 2.5 In view of the above, the applicant raised following issues for determination before this authority :- (i) Whether the activity

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he applicant uses its air separation plant to separate the Oxygen, Nitrogen and Argon by liquefying and separating the atmospheric air. Accordingly, it is pertinent to note that activity of manufacture of gases by Air Separation Unit ( ASU ) requires three primary ingredients viz. air, electricity and water for separation of the atmospheric air. These raw materials and inputs are supplied to them by M/s. Essar and the said activity of separation of air to obtain gases is done on behalf of M/s. Essar only. Therefore, the transaction in the present case clearly classifies as a job work transaction. They submitted that as clarified by the Circular D.O.F. No. 334/4/2006-TRU dated 28.02.2006 issued by the Ministry of Finance, which has reiterated the settled law (UOI Vs. Playworld Electronics Private Ltd. – AIR 1990 SC 2002), that in order to determine the taxability of a transaction, it is essential to determine its true commercial nature. It is submitted that the perusal of various clause

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gases by the applicant. The said inputs are processed by the applicant for manufacturing the industrial gases by employing its plant and personnel, and the applicant has no rights whatsoever to the resultant gases. It is submitted that in view of the commercial arrangement outlined above, the activity undertaken by the applicant on behalf of M/s. Essar is clearly a job work activity. 4.2 It is submitted that from the provisions of the CGST Act, 2017, there are three essential requirements to be fulfilled by the applicant in the present case to term the present transaction as job work, namely : (a) The activity undertaken by the company should qualify as a treatment or process , (b) The treatment or process undertaken should be on goods i.e. the raw materials/ inputs involved in the present cases should fall within the ambit of term goods, (c) The goods should belong to Essar . 4.3 The applicant submitted that as the terms treatment or process have not been defined under the GST laws, r

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resent case on the goods. Therefore, condition (a) mentioned above is fulfilled in the present case. 4.4 The applicant submitted that the raw materials / inputs on which the treatment / process undertaken by the applicant should qualify as goods . In this regard, they referred to definition of term goods given in section 2(52) of the CGST Act, 2017. They also referred to the definitions of goods given under some of the erstwhile Sales Tax and VAT legislations. It is submitted that in the context of the definition of goods under the Sales Tax and VAT legislations, the Hon ble Supreme Court has examined and ruled on the issue of whether electricity constitutes goods . They referred to the decision of Hon ble Supreme Court in the case of Commissioner of Sales Tax, M.P., Indore Vs. M.P. Electricity Board, Jabalpur [1970 (25) STC 188] and State of Andhra Pradesh Vs. National Thermal Power Corporation Ltd. and Ors. [(2002) 3 SCR 278] and submitted that electricity is in the nature of moveabl

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r as the payment for procurement of the same to the Government authorities is also done by M/s. Essar only. Further, this is also evident on perusal of clause 4 of the Agreement. As regards the Air used by the applicant for manufacture of the industrial gases, they submitted that the following aspects need to be examined to conclude on the issue of ownership of the air viz. (i) statutory position; and (ii) position under the commercial arrangement. They submitted that it is a settled position in law that the owner of land is also the owner of the vertical column of air above the land. This position derives from the Latin maxim cuius est solum, eius est usque ad coelum et ad inferos, and has been legislatively recognized under the Indian Easements Act, 1882 at Section 7 thereof. It is submitted that the said provision clearly states that the ownership of land includes ownership of the air vertically above the land and this principle has also been judicially accepted in a plethora of dec

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led in the present case. 4.6 The applicant submitted that as all the conditions required to be fulfilled by the applicant in order to fit into the definition of the term job work are satisfied, the present transaction would be construed as a job work transaction and the applicant would be considered as a job worker of Essar. 5.1 As regards the valuation, it is submitted that the valuation of the present transaction would be transaction value as determined in accordance with Section 15(1) of the CGST Act, 2017 i.e. the price actually paid or payable when the following two conditions are satisfied : – The supplier and the recipient of the supply should not be related, and – Price should be the sole consideration for the supply They referred to the decisions in the cases of Commissioner of Central Excise Rajkot Vs. Jai Bharat Steel Industries [2005 (192) ELT 792 (Tri.-Mumbai)], maintained in Supreme Court [2016 (340) ELT A138 (SC)] and Eicher Tractors Ltd. Vs. Commissioner of Customs, Mum

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lly payable or paid and in the present case, the price actually paid or payable is the job work charges, therefore, GST in the present transaction would be payable only on the job work charges paid by M/s. Essar to the applicant. 6. The applicant also submitted that they only process the goods supplied by M/s. Essar to manufacture those goods into industrial gases. The activity of processing applied to another person s goods is a supply of service by virtue of Section 7(1)(d) read with Entry 3 of Schedule II of the CGST Act, 2017 which provides that any treatment or process which is applied to another person s goods is a supply of services . Accordingly, the process undertaken by the applicant in the present case on the goods belonging to M/s. Essar would be considered as a Supply of Service and GST on the said transaction would be payable only on the processing charges collected by the applicant from M/s. Essar. 7.1 The applicant filed further submission vide letter dated 16.11.2017,

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st. In fact, as per their agreement (Para 4.3.2 Page 25), earlier they were paying Central Excise duty. The gases produced are further captively consumed by M/s. Essar in its steel manufacturing operations. The applicant s claim that they have obtained a separate GST registration for location at designated land of Essar is not correct as the applicant has mentioned it as their additional place of business and GST Registration s copy has been submitted. 8.2 The definition of job work under Section 2(68) under the CGST Act, 2017 has been referred and it is submitted that the job work means undertaking any treatment or process by a person on goods belonging to another registered taxable person; that the person who is treating or processing the goods belonging to other person is called job worker and the person to whom the goods belong is called principal . 8.3 With respect to the submissions made by the applicant at Para 4.1.2 of the submissions wherein it has been stated that the activit

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goods, supplied by M/s. Essar, on which any treatment or process is undertaken by the applicant to manufacture industrial gases. Therefore, the activity of the applicant does not meet the definition of job work given in the CGST Act, 2017 as it does not involve any treatment or process on goods belonging to another registered person. It is evident that the applicant is involved in an activity which is not job work but manufacture and supply of a completely new item i.e. industrial gases which are goods in terms of section 2(52) of the CGST Act, 2017. 8.4 Further, as the process undertaken amounts to manufacture, the applicant was registered with the Central Excise department as a manufacturer and discharging Central Excise liability towards clearances to M/s. Essar. Even the clause 2(c) of Schedule 2 of CGST Act, 2017, mandates that any transfer of title in goods under an agreement which stipulates that property in goods shall pass at a future date upon payment of full consideration a

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ant amounts to Job Work as defined under Section 2(68) of the CGST Act, 2017 and the Gujarat Goods and Services Tax Act, 2017 (herein after referred to as the GGST Act, 2017 and the CGST Act, 2017 and the GGST Act, 2017 have been collectively referred to as the said Acts ). The term job work has been defined under Section 2(68) of the said Acts as follows :- 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; 10.2 The applicant has submitted that the essential requirements to be fulfilled by them to term the present transaction as job work includes that the treatment or process undertaken should be on goods, and that these goods should belong to Essar. 11.1 The definition of the term goods has been given under Section 2(52) of the said Acts as follows :- goods means every kind of movable property other than money and securities but includes actionable claim, growing

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merely because electric energy is not tangible or cannot be moved or touched like, for instance, a piece of wood or a book, it cannot cease to be movable property when it has all the attributes of such property. It is needless to repeat that it is capable of abstraction, consumption and use which, if done dishonestly, would attract punishment under s. 39 of the Indian Electricity Act, 1910. It can be transmitted, transferred, delivered, stored, possessed etc. in the same way as any other movable property. Even in Banjamin on Sale, 8th Edn., reference has been made at page 171 to County of Durham Electrical, etc., Co. v Inland Revenue(1) in which electric energy was assumed to be goods . If there can be sale and purchase of electric energy like any other movable object we see no difficulty in holding that electric energy was intended to be covered by the definition of goods in the two Acts. The applicant has submitted that similar view has been adopted by the Hon ble Supreme Court of In

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has been held that the term processing is a much wider term. In our opinion, the expressions further processing and any other purpose mentioned in Rule 4(5)(a) are fairly wide and would take their colour from the processes mentioned in the definition of input . As such the generation of electricity or steam as intermediate products would fall within the scope of these expressions, and would amount to job work (c) S.B. Sarkar s Word & Phrases of Excise, Customs & Service Tax, 4th Edition : Process means Prepared, handled, treated or produced by a special process (d) Websters Dictionary : Processing means to subject to some special process or treatment; to subject (esp. raw material) to a process of manufacture, development or preparation. 12.3 The applicant carries out activity of manufacturing industrial gases viz. Oxygen, Nitrogen and Argon by undertaking treatment or process on the goods viz. Atmospheric Air and Industrial Water. 13.1 As per the definition of Job Work such tr

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ailability / accessibility, as applicable, of/to each of the inputs. 4.1.2 ESSAR agrees to provide to INOXAP the Inputs (free of charge) at the INOXAP Facility to enable INOXAP to meet its obligations in relation to the Manufacturing Activity and to generate the Guaranteed Quantity (which obligations are contingent upon supply of the Inputs) under this Agreement. For the avoidance of doubt, the Parties agree that ESSAR shall at all times during the Term continue to provide the auxiliary power (free of charge) in accordance with Clause 12.1.3 of Schedule 1 at the INOXAP Facility. 13.3 As regards Atmospheric Air, which required for manufacturing industrial gases viz. Oxygen, Nitrogen and Argon, there is no reference in the agreement. In this regard, the applicant has submitted that the owner of the land is also the owner of the vertical column of air above the land, which position derives from the Latin maxim cuius est solum, eius est usque ad coelum et ad inferos (Translated : For whoev

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s ownership of the air vertically above the land. This principle has also been judicially accepted in a plethora of decisions. In light of the settled principle of law, the ownership of land extends to the ownership of the air vertically above it. Accordingly, the air (above the land which is owned by ESSAR), clearly belongs to ESSAR. It is also submitted by the applicant that in terms of the arrangement between the parties, M/s. Essar is required to provide land and all other inputs for the processing of gases by INOXAP. Since the owner of the land would own the ambient air above its land, in effect, M/s. Essar has provided the same to INOXAP in terms of the arrangement (along with electricity, industrial water etc.) 13.4 In view of the aforesaid statutory position and commercial arrangement, it is clear that the Atmospheric Air used by the applicant belongs to M/s. Essar. Thus, all the inputs viz. Atmospheric Air, Industrial Water and Electricity belongs to M/s. Essar. 14.1 As all th

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e goods are produced or manufactured by a job-worker, on behalf of a person (hereinafter referred to as principal manufacturer), then, – (i) …….. (ii) …….. (iii) …….. Provided that ……….. Explanation. – For the purposes of this rule, job-worker means a person engaged in the manufacture or production of goods on behalf of a principal manufacturer, from any inputs or goods supplied by the said principal manufacturer or by any other person authorised by him. Thus, it is evident that under the Central Excise regime also, the applicant was discharging duty under Rule 10A of the Central Excise Valuation Rules, 2000, which Rule was applicable where the excisable goods were produced or manufactured by a job-worker, on behalf of a principal manufacturer, from any inputs or goods supplied by the said principal manufacturer or by any other person authorized by him. 14.4 Therefore, taking all these aspects into consideration, we hold th

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med to be related persons if – (i) such persons are officers or directors of one another s businesses; (ii) such persons are legally recognised partners in business; (iii) such persons are employer and employee; (iv) any person directly or indirectly owns, controls or holds twenty-five per cent. or more of the outstanding voting stock or shares of both of them; (v) one of them directly or indirectly controls the other; (vi) both of them are directly or indirectly controlled by a third person; (vii) together they directly or indirectly control a third person; or; (viii) they are members of the same family; (b) the term person also includes legal persons; (c) persons who are associated in the business of one another in that one is the sole agent or sole distributor or sole concessionaire, howsoever described, of the other, shall be deemed to be related. 15.2 The applicant and M/s. Essar are not related persons as defined under Explanation (a) and (c) of Section 15 of the said Acts. 15.3

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2018 (6) TMI 111 – AUTHORITY FOR ADVANCE RULINGS, KARNATAKA – 2018 (13) G. S. T. L. 251 (A. A. R. – GST), [2018] 2 GSTL (AAR) 103 (AAR) – Classification – Nature supply – divisible contract [Supply of goods & Supply of Services] or an indivisible contract [works contract] – Construction of power lines, erection of transmission towers and transformers – single composite contract, but with three connected agreements for Supply of Materials, Erection and Civil Works respectively – KPTCL is a Government body or not – Whether the contract, executed by them for KPTCL, is a divisible contract [Supply of goods & Supply of Services] or an indivisible contract [works contract]? – Whether the tax rate of 12% [CGST-6% + SGST-6%] is applicable to the contract, in pursuance of N/N. 24/2017-Central Tax (Rate) dated 21.09.2017?
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Held that:- The composite supply of works contract as defined at Section 2 clause 119 of CGST Act 2017 is treated as supply of service in terms of serial no.6, Schedule

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e Government – Further M/s KPTCL, who awarded the contract to the applicant, are registered under Companies Act 1956 as a company and is a separate entity. Therefore it can not be considered as the State Government or a State Government Authority. Hence the applicant is not entitled for the benefit of the concessional rate of GST @ 12%, in terms of N/N. 24/2017-Central Tax (Rate) dated 21.09.2017.
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Ruling:- The contract contract entered by the applicant is of the nature of 'indivisible' and squarely falls under the works contract, which is a service – The Applicant is not entitled for the benefit of concessional rate of GST @12% in terms of Notification No.24/2017-Central Tax (Rate) dated 21.09.2017. – Advance Ruling No. KAR ADRG 3 of 2018 Dated:- 21-3-2018 – MR. HARISH DHARNIA MEMBER AND DR. RAVIPRASAD, MEMBER RULING 1. M/s Skilltech Engineers 6s Contractors Private Ltd., (hereinafter referred to as 'Applicant') holding GSTIN number 29AACCS5473FIZ0, having registered add

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rms and conditions are commonly applicable to all the three agreements. 3. The applicant sought advance ruling on the following questions/issues that 1. Whether the contract, executed by them for KPTCL, is a divisible contract [Supply of goods & Supply of Services] or an indivisible contract [ works contract]? 2. Whether the tax rate of 12% [CGST-6% + SGST-6%] is applicable to the above contract, in pursuance of Notification No.24/2017-Central Tax (Rate) dated 21.09.2017? PERSONAL HEARING PROCEEDINGS HELD ON 09.01.2018. 4. Sri. L Arun Kumar, Executive Director of the applicant concern appeared and presented the following: (a) That a single bid/tender was called for by KPTCL, for composite activities of Supply of material, Erection of the same & Civil Works associated with the erection. (b) That three separate agreements were entered into for the three different activities, after identifying the successful bidder. (c) That the question on which advance ruling has been sought for

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Whether the tax rate of 12% [CGST-6% + SGST-6%] is applicable to the above contract, in pursuance of Notification No.24/2017-Central Tax (Rate) dated 21.09.2017? 7. In view of the above the issues before us to decide are (1) whether the contract entered by the applicant falls under works contract or not and (2) Whether the applicant is entitled for concessional rate of GST under Notification No.21/2017-CentralTax (Rate). 8. Section 2 clause 119 of CGST Act'2017 defines works contract as a contract for building, construction, fabrication, completion, erection, installation, fitting out, improvement, modification, repair, maintenance, renovation, alteration or commissioning of any immovable property wherein transfer of property in goods (whether as goods or in some other form) is involved in the execution of such contract; 9. The composite supply of works contract as defined at Section 2 clause 119 of CGST Act'2017 is treated as supply of service in terms of serial no.6, Schedule

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ighlighted the words 'State Government'. Also on the next page they have submitted a bullet point KPTCL is covered under the definition of State Government . 12. The Applicant therefore contends that they are providing services to 'State Government' and are thus eligible for the tax rate enumerated in the aforesaid notification. 13. A statutory body, corporation or an authority created by the Parliament or a State Legislature is neither 'Government' nor a local authority'. Such statutory bodies, corporations or authorities are normally created by the Parliament or a State Legislature in exercise of the powers conferred under article 53(3)(b) and article 154(2)(b) of the Constitution respectively. It is a settled position of law (Agarwal v. Hindustan Steel AIR 1970 Supreme Court -1150) that the manpower of such statutory authorities or bodies do not become officers subordinate to the President under article 53(1) of the Constitution and similarly to the Gover

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2018 (5) TMI 1737 – AUTHORITY FOR ADVANCE RULINGS, KARNATAKA – 2018 (13) G. S. T. L. 224 (A. A. R. – GST), [2018] 2 GSTL (AAR) 102 (AAR) – Levy of GST on Health care services – diagnosis, pre & post counseling therapy and prevention of diseases by providing sophisticated and relevant tests – N/N. 12/2017- Central Tax (Rate) dated 28th June, 2017 – Whether the Applicant qualifies as clinical establishment? – Whether the services provided by the applicant qualifies to be health care services?
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Clinical Establishment – Held that:- The applicant offers services/facilities requiring diagnosis such as patient counselling, suggesting the relevant test for the patient, collecting samples, obtaining the result of the test, sharing the test results and post counselling. The medical team of the applicant discusses with the oncologist/pathologist, takes samples of required tissues and send it for the tests to US/Germany, with regard to the oncology/auto immune deceases. They play the role of

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KAR ADRS 5/2018 Dated:- 21-3-2018 – Sri Harish Dharnia, Joint Commissioner of Central Tax And Dr. Ravi Prasad M. P., Joint Commissioner of Commercial Taxes (Vigilance) RULING 1. M/s Sayre Therapeutics Pvt. Ltd., Bengaluru, ('the applicant') is a registered taxable person registered under the Central Goods and Services Tax Act, Karnataka Goods and Services Tax Act and Integrated Goods and Services Tax Act, The applicant is involved in the diagnosis, pre and post counselling, therapy and prevention of diseases by providing tests that are sophisticated and relevant. 2. The applicant is a healthcare company dealing with oncology ajid immunology therapy and diagnostics related products. They in-licenses medicines, secures regulatory approvals post clinical studies and then commercialises novel drugs, devices and molecular diagnostics in therapeutic areas, i.e. oncology and auto immune disorders, thereby transforming patient care. The applicant is specifically working in precision d

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, is a microarray based gene expression test that aids in identifying challenging tumours, including metastatic, poorly differentiated and undifferentiated cancers. This test assumes significance, as current day precision therapy can be effective only if the site of origin is known. Similarly, they have collaborated with a molecular diagnostic company from Germany to provide advance genetic diagnostics tests that help in prevention and management of cancers and blood disorders, In all these diagnostic tests, die Medical team of the applicant is involved in the complete cycle of testing process beginning with patient counselling to sharing the results and post-test counselling. Thus, the applicant is involved in diagnosis, pre- and post-counsel ling, therapy and prevention of diseases by providing tests that are sophisticated and relevant. (c) The Entry No. 74 of Notification 12/ 2017- Central Tax exempts health care services at clinical establishment, an authorised medical professional

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ers services or facilities requiring diagnosis or treatment or care for illness, injury, deformity, abnormality or pregnancy in any recognised system of medicines in India, or a place established as an independent entity or a part of an establishment to carry out diagnostic or investigative services of diseases. (e) As per sub-section (47) of section 2 of the Central Goods and Services Tax Act, exempt supply means supply of any goods or services or both which attracts ml rate of tax which may be wholly exempt from tax under section 11, or under section 6 of the Integrated Goods and Semces Tax Act, and includes a non-taxable supply. (f) Based on the above notification, services provided by the applicant meets the requisite criteria and qualifies as health care services and hence is nil rated supply. FINDINGS & DISCUSSION: 5. We have considered the submissions made by the Applicant in their application for advance ruling as well as during the personal hearing on 09-01-2018. We have a

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from the patients, transport the samples for the relevant test, collect the test result, discuss with the ancologist and clarify the queries, based on which the ancologist recommend the treatment options to the patient. 7. Health care services provided by clinical establishments, an authorised medical practitioner or para-medics are exempted vide Sl.No.74 of the Notification No. 12/2017- Central Tax (Rate) dated 28th June, 2017. Therefore the issue/s before us to decide are a. Whether the Applicant qualifies as clinical establishment? b. Whether the services provided by the applicant qualifies to be health care services? 8. We proceed to answer the questions as under; Clause 2(s) of the Notification No. 12/2017- Central Tax (Rate) dated 28th June, 2017 defines clinical establishment as under: clinical establishment3' means a hospital, nursing home, clinic, sanatorium or any other institution by, whatever name called, that offers services or facilities requiring diagnosis or treatme

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cation No. 12/2017- Central Tax (Rate) dated 28th June, 2017 defines Health Care Services as under: (zg) health care services means any service by way of diagnosis or treatment or care for illness, injury deformity, abnormality or pregnancy in any recognised system of medicines in India and includes services by way of transportation of the patient to and from a clinical establishment, but does not include hair transplant or cosmetic or plastic surgery, except when undertaken to restore or to reconstruct anatomy or functions of body affected due to congenital defects, developmental abnormalities, injury or trauma; 11. In the instant case the Applicant is involved in providing the services of diagnosis, pre & post counseling! therapy and prevention of diseases by providing tests that are sophisticated and relevant. The medical team of the applicant is involved in the complete cycle and hence they facilitate the diagnosis process and therefore the services provided by the applicant qu

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2018 (5) TMI 1704 – AUTHORITY FOR ADVANCE RULING – KARNATAKA – 2018 (13) G. S. T. L. 255 (A. A. R. – GST), [2018] 2 GSTL (AAR) 104 (AAR) – Levy of GST on rent payable by a Hospital, catering life saving services – appellant have taken premises of one floor on rental basis from existing building of Mallige Hospital for heart Care Services only – Rental or leasing services involving own or leased non-residential property – purview /jurisdiction of authority under Section 97(2) (e) of the CGST Act 2017.
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Held that:- The Applicant has taken the premises on lease and running exclusive heart care centre & providing health care services on commercial basis – The impugned service of Rental or leasing services involving own or leased non-residential property is classified under the heading (SAC) 997212 and is taxable under GST. Further no specific exemption is available under any notification for the time being in force for the said service. Also there is no provision available in the Act

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of CGST Rules 2017 & KGST Rules 2017, in form GST ARA-01. They enclosed copy of challan for ₹ 10,000/- bearing CIN number PUNB18012900027179 dated 05.01.2018 towards the fee for advance ruling and hence the same is admitted. 2. The applicant is a cardiology specialised hospital running on a premises taken on lease. They are providing cardiology related, life saving, health care services to the patients and the said output services are exempt from GST. They have taken premises of one floor on rental basis from existing building of Mallige Hospital for heart Care Services only. 3. The applicant sought advance ruling on the question / issue that "Whether GST is leviable on the rent payable by a Hospital, catering life saving services?" PERSONAL HEARING: / PROCEEDINGS HELD ON 09.02.2018. 4. Dr.Mahantesh Charanthimath, Chairman and Managing Director of the applicant concern appeared and filed written submissions presenting the following: (a) That the business enterprise

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g bearing on the question / issue raised, the applicant's understanding / interpretation of law in respect of the issue. 6. The Applicant sought advance ruling on the question that whether GST is leviable on the amount of rent paid/payable by them towards leasing of the premises by the hospital or not, which clearly falls under the purview /jurisdiction of this authority under Section 97(2) (e) of the CGST Act 2017. 7. Renting in relation to immovable property is defined at 2(zz) of the Notification No. 12/2017- Central Tax (Rate) dated 28.06.2017 as (zz) "renting in relation to immovable property" means allowing, permitting or granting access, entry, occupation, use or any such facility, wholly or partly, in an immovable property, with or without the transfer of possession or control of the said immovable property and includes letting, leasing, licensing or other similar arrangements in respect of immovable property; The Applicant has taken the premises on lease and runn

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2018 (5) TMI 1524 – CESTAT AHMEDABAD – TMI – Short payment of service tax – whether the appellant had short paid service tax of ₹ 2,44,017/- during the period 2011-12? – Held that: – appellant had categorically claimed that out of the total short payment of ₹ 2,44,017/- an amount of ₹ 1,86,262/- has been paid in the Financial Year 2012-13, as provision was only made in the year 2011-12, whereas bills were raised subsequent year 2012-13 – This fact needs to be verified by the Adjudicating Authority and the re-determination of the liability be carried out accordingly – appeal allowed by way of remand. – Appeal No ST/10437/2018 – A/10569/2018 – Dated:- 21-3-2018 – Dr. D. M. Misra, Member (Judicial) For Appellant (s) : None F

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reas in the returns, the appellant had paid ₹ 36,58,459/ resulting into short payment of ₹ 2,44,017/- It is their contention that a part of the said amount i.e. ₹ 1,86,262/- is attributable to the provision of ₹ 18,08,368/- made in the books of accounts in the Financial Year 2011-12, for which the bills were raised in the subsequent Financial Year 2012-13, and accordingly service tax amount was paid in 2012-13. The remaining amount has not been disputed by them. 5. Ld. AR for the Revenue submits that since the issue was not raised before the Adjudicating Authority, therefore, it could not be verified. 6. I find that the appellant had categorically claimed that out of the total short payment of ₹ 2,44,017/- an a

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2018 (5) TMI 1507 – CESTAT AHMEDABAD – TMI – CENVAT credit – input services – MS Angles, MS Channels, MS plates and MS PIPES etc. used in repair and maintenance of plant and machinery in their factory – Held that: – This Tribunal consistently held that MS Angles, Channels, Beams etc., used in Repair and Maintenance of Plant and Machinery in the factory is admissible to credit – appeal dismissed – decided against appellant-Revenue. – Appeal No E/10444/2018 – A/10570/2018 – Dated:- 21-3-2018 – Dr. D. M. Misra, Member (Judicial) For Appellant (s) Shri K. J. Kinariwala AR For Respondent (s): None Per: Dr. D. M. Misra None present for the Respondent. Heard the Cd. AR for the Revenue. 2. This is an appeal filed against the order-in-appeal No. KCH-EXCUS-000-APP-137-2017-18 dated 20.12.2017 passed by Commissioner (Appeals), Central Excise, and GST-Rajkot. 3. The short issue involved in the present appeal is: whether the appellant are entitled to avail Cenvat credit of the duty paid in respect

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case (supra) after analysing the principle of law of this Tribunal observed as under:- "5. I have considered submissions from both the sides and perused the records. I find that the issue as to whether the goods used for repair and maintenance of plant and machinery are eligible for cenvat credit, stands decided in favour of the Appellant by Hon'ble Rajasthan High Court in the case of Hindustan Zinc Ltd. (supra) wherein Hon'ble High Court has held that MS/SS plates used in the workshop meant for repair and maintenance of the plant and machinery's would be liable for cenvat credit and also by the judgments of Hon'ble Chhattisgarh High Court in the case of Ambuja Cements Eastern Ltd. v. Commissioner of Central Excise (supra) and Hon'ble Karnataka High Court in the case of Commissioner of Central Excise v. Alfred Herbert (India) Ltd. (supra) wherein Hon'ble High Court have held that the inputs used for repair and maintenance of plant and machinery would be el

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even if theoretically possible, is commercially inexpedient. The scope of the expression used in the definition of 'input' in Rule 2(k) of the Cenvat Credit Rules, 2004 – used in or in relation to manufacture of final products, whether directly or indirectly and whether contained the final products or not" is much wider than the scope of the expression "used in manufacture of" and therefore the expression- "used in or in relation to manufacture of final product', whether directly or indirectly" in the definition of input in Rule 2(2) would cover all the goods whose use is commercially expedient in manufacture of final products. 5.3 Repair and maintenance of plant and machinery is an activity without which smooth manufacturing is not possible. Commercially, manufacturing activity is not possible with malfunctioning machines, and leaking tanks, pipes and tubes. Therefore the activity of repair and maintenance of plant and machinery is an activity whic

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2018 (5) TMI 1181 – AUTHORITY FOR ADVANCE RULING – GUJARAT – 2018 (13) G. S. T. L. 211 (A. A. R. – GST), [2018] 2 GSTL (AAR) 97 (AAR) – Rate of GST – applicant is having business of caterers and supply food, beverages and other eatables (non-alcoholic drinks) complete services at various places of their customers who have in house canteens at their factories – whether rate of tax on their supplies made to the recipient would be 12% or 18%? – applicability of Circular No. 28/02/2018GST dated 08.1.2018.
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Held that: – the service recipient has engaged the applicant for running of the canteen for their workers / employees. The rates for the meal, snacks, tea have been fixed and payable by the recipient. Menu is required to be decided by the canteen committee of the recipient. It is, therefore evident that the applicant, who is caterer, is providing service from other than his own premises to the recipient. Therefore, the nature of service provided by the applicant is that of outdoor

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2017-Central Tax (Rate) dated 28.06.2017, as amended, issued under the Central Goods and Services Tax Act, 2017 and Notification No. 11/201 7-State Tax (Rate) dated 30.06.2017, as amended, issued under the Gujarat Goods and Services Tax Act, 2017, attracting Goods and Service Tax @ 18% (CGST 9% + SGST 9%). – Advance Ruling No. GUJ/GAAR/R/2018/8 Dated:- 21-3-2018 – R.B. Mankodi (Member) and G.C. Jain (Member) Present for the Applicant : Shri Mehul P. Buch (Consultant) The Applicant M/s. Rashmi Hospitality Services Private Limited has submitted that the applicant is having business of caterers and supply food, beverages and other eatables (non-alcoholic drinks) complete services at various places of their customers who have in house canteens at their factories. The applicant -submitted that applicant normally charges GST @ 18% classifying their services under heading 9963 as outdoor catering.. 2. The applicant has submitted that one of the customer, who is recipient of services, has gi

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n of 'Outdoor Caterer' under Finance Act, 1994 was as under 'Outdoor caterer means a caterer engaged in providing services in connection with catering at a place other than his own but including a place provided by way of tenancy or otherwise by the person receiving such services. 3.3 The applicant further submitted that viewing the above clarification, it is admitted fact that statutory body have to provide food and beverage to their staff and the applicant is the outside contractor providing the service to statutory body, hence whether the above clarification is applicable to them, and what should be the tax rate before the said notification and after notification ? 4.1 The Goods and Services Tax and Central Excise Commissionerate, Kutch (Gandhidham) inter-alia informed that the question under consideration is whether the service provided by the applicant to the client is classifiable under chapter 996311 or otherwise and GST is applicable @ rate 12% or 18%. It is submitt

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18% is applicable on that service. 4.2 It is further submitted that as per contract made between the applicant and the client, the canteen space and all equipments have been provided by the client to the applicant and the applicant is only providing the services pertaining to Food, edible preparation service. It is opined by the Commissinerate that the activity carried out by the applicant appears to be in the nature of cooking of Foods and serving of foods along with edible preparations and it is classifiable as services provided in canteen and other similar establishments (Chapter Heading 996333). 4.3. It is further opined by the Commissionerate that as per classification of services provided vide Notification No. 11/2017-Central Tax (Rate) dated 28 06.2017, the activity carried out by the applicant appears to be in the nature of service provided in canteen and other similar establishments and also classifiable under Chapter Heading 996333 and GST @ rate of 18% is applicable on that

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pany would pay the applicant as per System / Manual Record availing Canteen meal. It is also agreed that the company would pay agreed rate per card punch for using the Normal Meal', per card punch for 'Special Meal', and would pay in cash per piece for snacks and per cup of Tea. It is also agreed that VAT & Service Tax would be paid extra, as applicable. It has also been stipulated that the menu would be decided by the canteen committee from time to time, which will consists of 'limited' and 'unlimited' items as stipulated in the agreement. 7.2 Sr. No. 7 of Notification No. 11/2017-Centra1 Tax (Rate) dated 28.06.2017, as amended, issued under the Central Goods and Services Tax Act, 2017 (herein after referred to as. the 'CGST Act, 2017') and Notification No. 11/2017-State Tax (Rate) dated 30.06.2017, as amended issued under the Gujarat Goods and Services Tax Act, 2017 (herein after referred to as the 'GGST Act, 2017') provides different r

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rcial 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. Explanation.- declared tariff includes charges for all amenities provided in the unit of accommodation (given on rent for stay) like furniture, air conditioner, refrigerators or any other amenities, but without excluding any discount offered on the published charges for such unit. 2.5 Provided that credit of input tax charged on goods and services used in supplying the service has not been taken [Please refer to Explanation no. (iv)].] (ii) ….. 6 – (iii)….. 9 -] (iv) * * * * * * *] (v) Supply, by way of or as part of any service or in any other manner whatsoever in outdoor catering wherein goods, being food or any other article for human consumption or any drink (whether or not alcoholic liquor for human consumption), as a part of such outdoor catering and such supply or service is for ca

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e activity undertaken by the applicant is in the nature of supply of service provided by a restaurant, eating joint including mess, canteen and covered by Sr. No. 7(i) of the Notification No. 11/2017-Central Tax (Rate) or it is in the nature of supply of service as a part of outdoor catering and covered by Sr. No. 7(v) of the Notification No. 11/2017-Central Tax (Rate). 8.2 On perusal of the copy of the agreement submitted by the applicant, it is evident that the service recipient has engaged the applicant for running of the canteen for their workers / employees. The rates for the meal, snacks, tea have been fixed and payable by the recipient. menu is required to be decided by the canteen committee of the recipient. It is, therefore evident that the applicant, who is caterer, is providing service from other than his own premises to the recipient. Therefore, the nature of service provided by the applicant is that of outdoor catering service. 8.3 Even though the meal, snacks, teas are pr

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ded by Hon'ble High Court of Allahabad in the case of Indian Coffee Workers' Co-Op. Society Ltd. Vs. CCE & ST, Allhabad [2014 (34) S.T.R. 546 (All.)], wherein it was held as follows – 8. Analyzing the provisions of clause (24) of Section 65 of the Finance Act, 1994, in order to be a caterer, a person should be one who supplies food, edible preparations, beverages (alcoholic or non-alcoholic) or crockery and similar articles or accoutrements for any purpose or occasion. The supply may be made directly or indirectly. Consequently, there has to be, firstly, a supply of food, edibles, beverages or crockery and similar articles or accoutrements. Secondly, this supply may be for any purpose or occasion. A purpose is an effectuation of a particular object. An occasion is an event defined with reference to time which may take place either as an isolated occurrence or be sporadic or periodical. Thirdly, the supply may be directly by the person himself or indirectly through anot

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ity of a canteen which is provided by NTPC or, as the case may be, by LANCO within their own establishments. NTPC and LANCO have engaged the services of the assessee as a caterer. The assessee is an outdoor caterer because the services which he provides as a caterer are at a place other than his own. The place is provided by NTPC and LANCO. The inclusive part of clause (76a) expands the definition to a place provided by way of tenancy or otherwise by the person receiving such services. NTPC and LANCO have engaged the services of the assessee as an outdoor caterer and the assessee is an outdoor caterer because services in connection with catering are provided by it at a place other than a place of the assessee. 10. Consequently, on a plain and literal construction of the provisions of Section 65(105)(zzt) read with the definitions of the expressions caterer and outdoor caterer as contained in clauses (24) and (76a), it is evident that the assessee is subject to the levy of Service

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ed under the CGST Act, 2017 / GGST Act, 2017 or the notifications issued there under. Nevertheless, the observations made in the aforesaid judgement of the Hon'ble High Court are relevant for deciding the present issue. In the said judgement, the Hon'ble High Court has observed that the taxable catering service cannot be confused with who has actually consumed the food, edibles and beverages which are supplied by the assessee. It is also held that the taxability or the charge of tax does not depend on whether: and to what extent the person engaging the service consumes the edibles and beverages supplied, wholly or in part. 9.3. In the present case also, the service of catering is provided by the applicant to the recipient and the fact that the meal, snacks, tea etc. are consumed by the workers / employees of the recipient would not alter the nature of service provided by the applicant. 10. In view of the foregoing, we rule as under – RULING The supply of services by M/s. Rashmi

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2018 (5) TMI 759 – AUTHORITY FOR ADVANCE RULING – KARNATAKA – [2018] 59 G S.T.R. 209 (AAR), 2018 (13) G. S. T. L. 114 (A. A. R. – GST), [2018] 2 GSTL (AAR) 101 (AAR) – Supply of goods & services to SEZ or not – intra-state supply – Place of Provision Rules – Whether the Hotel Accommodation & Restaurant services provided by them, within the premises of the Hotel, to the employees & guests of SEZ units, be treated as supply of goods & services to SEZ units in Karnataka or not?
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Held that: – On reading Section 16(1)(b) of IGST Act' 2017 & Rule 46 of CGST Rules 2017 together it is clearly evident that the supplies of goods or services or both towards the authorised operations only shall be treated as Supplies to SEZ Developer /SEZ Unit.
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Since place of provision of services in case of Hotel has been prescribed under the Act 'location of the Hotel' the rendition of services of restaurant, short term accommodation and Banqueting/conferencing cannot be said to have been 'imported o

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r, NASCO ISHANNYA, 27/1, Khanapur Road, Tilakwadi, Belgaum – 560 006, having GSTIN number 29AAACG9426FIZI, have filed an application, on 25.11.2017, 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 ₹ 5,OOO/- bearing CIN number UTIB17112900307729 dated 24.11.2017. 2. The Applicant is engaged in hotel business, having hotel "Fairfield Marriott" and provides hotel accommodation & restaurant services. They are providing services to the employees & guests of some of the units in SEZ, Belgavi, in addition to the regular customers. They are charging SGST & CGST at the applicable rates. The SEZ units contended that the services are being supplied / rendered to sez unit only and hence rate of GST is NIL as per provisions of section 16(1)(b) of IGST Act'2017. Therefore the applicant filed this instant app

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aurant services in Belgaum; that the hotel is situated outside the SEZ and also independent of SEZ; that the billing is done on SEZ company for employees of SEZ; that they have not entered into any contract with either SEZ or any unit in the SEZ; that they are not giving any concessional rate to the billings of SEZ at present; that SEZ units contended for concession; that SEZ units gave letter to the hotel to provide billing in their name whenever any of their guest / employee uses the services/ facilities and hence they filed the instant application. 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 R.L. Barve, Chartered Accountant during the personal hearing. We also considered the issue/transaction(s) involved on which advance ruling is sought by the applicant, relevant facts of the transaction(s) involved, the applicant s understanding of rate of tax in respect of the

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017 & Rule 46 of CGST Rules 2017 together it is clearly evident that the supplies of goods or services or both towards the authorised operations only shall be treated as Supplies to SEZ Developer /SEZ Unit 9. The place of supply of the services by way of lodging accommodation by a hotel, shall be the location at which the immovable property (hotel) is located or intended to be located, as per Section 12 (3)(b) of the Integrated Goods and Services Tax Act, 2017. Also the place of supply of restaurant and catering services shall be the location where the services are actually performed, as per Section 12 (4) of the Integrated Goods and Services Tax Act, 2017. In the instant case, admittedly, the applicant is located outside the SEZ. Therefore the services rendered by the applicant are neither the part of authorised operations nor consumed inside the SEZ. 10. Since place of provision of services in case of Hotel has been prescribed under the Act 'location of the Hotel' the ren

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2018 (5) TMI 647 – AUTHORITY FOR ADVANCE RULINGS, MAHARASHTRA – 2018 (13) G. S. T. L. 449 (A. A. R. – GST) – Levy of GST – reinstatement charges paid to Municipal Authorities – to carry out the excavation of roads for laying, repair and maintenance of electric supply lines. – activity related to sovereign function or not – It has been contended that the service falls under entry 4 of Notification No. 12/2017 -Central/State Tax (Rate) dated 28.06.2017 – Whether reinstatement charges paid to Municipal Authorities would be liable to GST? – Held that: – There is specific entry in N/N. 12/2017-Central/State Tax (Rate) dated 28.06.2017 – from Chapter 99, it is very clear that if any services, including the three services excluded in clauses (a) to (c) of the above entry, are provided by the Government or local authority to any business entity, they would not be eligible for any exemption under GST – the applicant has made a whole lot of arguments to hold that the recovering of charges for t

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ding services such as gas, telephone, electricity, etc. The Guidelines for Trenching activity-2015 [No:AMC/ES/7725/11 Dated 18.12.2014 – policy guidelines for granting trench excavation permissions to underground service provider Utility agencies and Municipal agencies & the reinstatement of trenches] as provided by the applicant state that in addition to the regular RI charges, access charges for right of way will be recovered by MCGM from all utilities which lay underground services below MCGM roads – This statement helps to understand the position as respects MCGM [Municipal Corporation of Greater Mumbai]. That these charges would be exigible to GST is not doubtful even to the applicant and we agree with the same.
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To determine whether it is a composite supply by Municipal Authorities, the available information is insufficient as the question posed is in respect of Municipal authorities in general and not any specific Municipal Authority with complete details and therefore is n

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imilar 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 under the CGST Act /MGST Act would be mentioned as being under the GST Act 02 FACTS AND CONTENTION – AS PER THE APPLICANT The submissions, as reproduced verbatim, could be seen thus- 1 – STATEMENT OF THE RELEVANT FACTS HAVING A BEARING ON THE QUESTION(S) ON ANNEXURE I- STATEMENT OF THE RELEVANT FACTS HAVING A BEARING ON THE QUESTIONS (S) ON WHICH THE ADVANCE RULING REQUIRED 2. M/s. Reliance infrastructure limited ( the Applicant") is inter alia engaged in the business of generation, transmission and distribution of electricity and is registered under Goods and Service Tax Act ( GST ) bearing Registration No. 27AACCR7446Q1ZM. 3. The Applicant has obtained a license under Section 14 of the Central Electricity Act, 2003 ( Electricity Act ) to distribute e

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ion system in his area of supply and to supply uninterrupted electricity to his consumers. Further, in terms of Section 67 of the Electricity Act, every licensee may, from time to time but subject to the terms and conditions of his license, within his area of supply lay down or place electric supply lines and carry out following works: i) to open and break up the soil and pavement of any street, railway or tramway, ii) to open and break up any sewer, drain or tunnel in or under any street, railway or tramway; iii) to alter the position of any line or works or pipes, other than a main sewer pipe; iv) to lay down and place electric lines, electrical plant and other works; v) to repair, alter or remove the same; vi) to do all other acts necessary for supply of electricity. 6. Section 67 of the Electricity Act confers power on the appropriate Government to prescribe procedure to enable the licensee to carry out the specified works. This Section inter alia lays down that in order to carry o

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ction 67 of the Electricity Act. It also lays down lay down the procedure for fencing, guarding and other safety measures relating to the works and the immediate reinstatement of the affected areas and manner of restoration and the payment of the cost of reinstatement to the authority etc. The key provisions laid down in this connection are summarized hereunder: *Rule 11 of the Electricity Work Rules provides that licensee shall be liable to deposit an amount for restoration and maintenance of the affected areas. * Rule 12 of the Electricity Work Rules provides that the distribution licensee shall carry out the restoration and maintenance of the property affected by the works carried out by the distribution licensee. * Proviso to the Rule 12 of the Electricity Work Rules provides that where the restoration work is carried out by the concerned local authority, payment may be recovered by the local authority from the distribution licensees. * Rule 13 of the Electricity Work Rules provide

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Reinstatement Charges: Flat rates applicable for arriving a! reinstatement charges for various road surface based on prevailing Unified Schedule of Rates as well as charges for using existing duct will he as per Annexure-A. These rates have been worked out considering the width of trench as 0.9M, average depth of 0.9M and 0.55M width of affected area of road on each side; i.e. the total width of road to be improved will be 2.4M as against 2,4M as per previous practice. In case, the excavation proposed by the distribution licensee is not included in the Annual Plan submitted with Municipal Authorities, the distribution licensee is liable to pay Additional Reinstatement Charges at the rate of 7% of the normal Reinstatement Charges. The relevant extract of the MCGM Trenching Policy have been vided provided below: 6. Reinstatement Charges Along with Reinstatement Charges: 50% Additional amount shall be obtained from the utility agency as security deposit which can be utilized to recover p

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lines. The relevant extract of the MCGM Trenching Policy have been provided below: 6A. Access Charges (Right ofway charges): In addition to the regular RI charges; access charges for right of way will be recovered by MCGM from all utilities which lay underground services below MCGM roads. Presently these charges will be recovered at the rate of ₹ 100/- Per Meter length of the cable s/conduits/ducts Per Year. The Access charges will be enhanced as and when it is felt expedient to MCGM, on demand from MCGM or rather proactively; the access charges shall be deposited year by year by the Utility agencies. The access charges will be applicable to all types of trenching works i.e. open cut trenching, HDD & Micro trenching. Applicable access charges in individual case shall be Informed to the applicant utility agency through demand note along with the reinstatement Charges. 10. Therefore, every distribution licensee would be required to make payment of reinstatement charges and acce

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ng of the year, the distribution licensees would also be charged Additional Reinstatement Charge of 7% over and above the normal Reinstatement Charges, access charges and security deposit. Copy of the in-principle approval wherein the Municipal Authorities have charged reinstatement charges, access charges and additional reinstatement charges is enclosed as Exhibit C. d) Further, whenever the security deposit made by the Applicant gets exhausted (either as adjustment against penalties or against the reinstatement charges), the Municipal Authorities issues letters directing the Applicant to make additional security deposit. Copy of the letter issued by Municipal Authorities is enclosed as Exhibit D. 11. It is to be noted that that the Applicant has made similar payments of reinstatement charges and access charges to other authorities namely Mumbai Metropolitan Region Development Authority (MMRDA) and Mira Bhayandar Municipal Corporation. STATEMENT CONTAINING THE APPLICANT S INTERPRETATI

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2017, it is clear that the following conditions should be cumulatively fulfilled: i) There should be service (Condition I) ii) Service should be provided by Central Government, State Government, Union territory, local authority or governmental authority (Condition Il) iii) Service should be by way of any activity in relation to any function entrusted to a municipality under article 243 W of the Constitution (Condition Ill) Condition 2.3 The reinstatement charges are collected by the Municipal Authorities towards the activity of restoration of roads which includes activities such as construction, alteration, repair and maintenance of roads. It is pertinent to understand whether the activity undertaken by the Municipal Authorities would constitute works contract and thereby services . 2.4 In terms of Section 2(119) of the CGST Act, works contract means a contract for building, construction, fabrication, completion, erection, installation, fitting out, improvement, modification, repair, m

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ishad a District board and any other authority legally entitled to, or entrusted by the Central Government or any State Government with the control or management of a municipal or local fund; (d) a Cantonment Board as defined in section 3 of the Cantonments Act 2006: (e) a Regional council or a District Council constituted under the Sixth Schedule to the Constitution; f) a Development Board constituted under article 371 Of the Constitution; or (g) a Regional Council constituted under article 371A of the Constitution; 2.7 In terms of Article 243P read with 243S of the Constitution of lndia, a Nagar Panchayat, Municipal Council or a Municipal Corporation would constitute Municipality . Thus, Condition II in Entry 4 to NN 12/2017 stands fulfilled as the MCGM, MMRDA and Mira Bhayandar Municipal Corporation would be treated as local authority Condition III 2.8 The Condition Ill requires that the services should be by way of any activity in relation to any function entrusted to a municipalit

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trusted to them including those in relation to the matters listed In the Twelfth Schedule: (b) the Committees with such powers and authority as may be necessary 10 enable them to carry Out the responsibilities conferred upon them including those in relation to the matters listed in the Twelfth Schedule 2.11 The relevant entry of Twelfth Schedule of the Constitution of India is reproduced hereunder: (1)… (4) Roads and Bridges;… 2.12 As the services provided by the Municipal Authorities is towards restoration or reinstatement of the affected roads, bridges, etc. Condition Ill stands fulfilled. 2.13 Therefore, in view of the above, service of restoration of roads can be said to be provided by way of any activity in relation to any function entrusted to a municipality under Article 243 W of the Constitution and accordingly, reinstatement charges for restoration of roads collected by the Municipal Authorities can be said to be exempt from the applicability of GST. Access charges (right

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xable supplies of goods or services or both, or any combination thereof which are naturally bundled and supplied in conjunction With each other in the ordinary course Of business, one of which is a principal supply; 2.16 Further, in terms of Section 8 of the CGST Act, the tax liability of a composite supply comprising two or more supplies, one of which is a principal supply, shall be treated as a supply of such principal supply. 2.17 In the present case, the Municipal Authorities provide services of restoration of roads and also right of way to carry out excavation work. The services of giving right of way and restoration of roads are naturally bundled and are supplied in conjunction with each other in the ordinary course of business of granting permission to the licensee for carrying out the excavation works. Thus, it can be said that it would constitute a composite supply in terms of Section 2(30) of the CGST Act wherein the service of restoration of roads would be the principal supp

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thorities would be squarely covered by the Entry 4 to the Notification No. 12/2017 -Central Tax (Rate) dated 28.06.2017 ( NN 12/2017 ). From a perusal of Entry 4 to NN 12/2017, it is clear that the following conditions should be cumulatively fulfilled in order to avail such exemption: i) There should be service (Condition I) ii) Service should be provided by Central Government, State Government, Union territory, local authority or governmental authority (Condition II) iii) Service should be by way of any activity in relation to any function entrusted to a municipality under article 243 W of the Constitution (Condition III) 2. Relying on the discussion and deliberations during the course of the hearing, we understand that it is undeniable that the Condition I and Condition Il are fulfilled in the instant case. The only doubts raised by Your Honour during the course of the hearing was whether the services provided by the Municipal Corporation ( local authority ) can be said to constitute

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bridges . 5. It is a settled position in law that the term in relation to is a very broad expression which pre-supposes another subject matter. These are words of comprehensiveness which might both have a direct significance as well as an indirect significance depending on the context The Applicant has placed reliance on the following judicial precedents: * Doypack Systems Pvt Ltd vs. Union of India [1988 (36) ELT 201 (SC) = 1988 (2) TMI 61 – SUPREME COURT OF INDIA * Home Solution Retail India Ltd vs. Union of India [2009 (237) ELT 209 (Del.) = 2009 (4) TMI 14 – DELHI HIGH COURT 6. The Applicant submits that no activities or functions are explicitly specified as regards the subject matters listed under the Twelfth Schedule of the Constitution of India. Further, the functions entrusted to the municipality in relation to roads and bridges have not been defined anywhere in the Constitution of India or CGST Act, 2017 or any other Act. Thus, any activity carried out in relation to roads an

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y would also be covered by Entry 4 to NN 12/2017 and exemption should be allowed. 8. Further, as regards the argument that the functions or activities entrusted to Municipalities cannot be carried out for commercial purposes or business entities does not hold water. In this connection, the Applicant wishes to draw your attention to Entry 5 of the Twelfth Schedule to the Constitution of India which provides water supply for domestic, industrial and commercial purposes . Thus, from a perusal of the said entry, it is clear that the functions listed under the Twelfth Schedule are not restricted to be provided to public at large but it can also be provided for commercial purposes or industrial purposes to business entities. Hence, the services of the restoration of roads carried out for the Applicant would also get covered under the Twelfth Schedule to the Constitution of India. 9. Further, the Applicant also wishes to draw attention to the fact that the entries under NN 12/2017 can be clas

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o be used by general public at large. 11. Similarly, from a perusal of Entries covered by (iii) and (iv) above, it is clear that wherever the legislature wanted to exempt services provided to particular class of recipients, it has made explicit provisions to that effect. In the absence of such provisions in Entry 4, exemption cannot be denied in the instant case. 12. In view of the above, it is clear that wherever the legislature wanted to exempt services for use by general public or to be provided to some particular class of service recipient, it has made explicit provisions to that effect. In the absence of such provisions, exemption cannot be denied in the instant case. Thus, the exemption cannot be said to be available only when provided to public at large and the benefit of exemption is available even if the service is provided to particular business entity. 13. The Applicant also places reliance on the decision of M/s B.R. Enterprises vs. State of U.P. & Ors-MANU/SC/0330/1999

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different use of words in the two Articles is for a purpose, if the field of two Articles are to be the same. the same words would have been used. It is true, as submitted, that since trade is used both in Article 298 and 301, the same meaning should be given. To this extent, we accept it so but when the two Articles use different words, in a different set of words conversely, the different words used could only be to convey different meaning. If different meaning is given the field of the he different. so. When Instead of the words trade and commerce in Article 301. the words trade or business is used it necessarily has different and wider connotation than merely trade and commerce . Business may be of varying activities. may or not be for profit. hut it necessarily includes within is ambit trade and commerce so sometime it may be synonymous but its field stretches beyond trade and commerce, 14. In support of the above contention, reference may also be made to the following judgement

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to and the Authorities cannot add or substitute any word while construing notification either to grant or deny exemption. In this connection, reliance is placed on the Apex Court decision of Saraswati sugar Mills Versus Commissioner orc. Ex., Delhi-Ill – 2011 (270) E.LT. 465 (S.C.).= 2011 (8) TMI 4 – SUPREME COURT OF INDIA 16. In view of the above, it is clear that the benefit of exemption should be available to road restoration services provided by local authority to the Applicant. Exemption Notifications should be construed strictly 17. The Applicant also states that the Exemption Notifications are beneficial Notifications intended to benefit the industry and public at large and the same cannot be interpreted in a manner which renders the purpose of the Notification futile. It is a settled position of law that beneficial legislations should be interpreted liberally in order to extend the benefit of the statute to the assessee. In this connection, the Applicant places reliance on the

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there is no real contradiction amongst the judgments at all. The synthesis of the views is quite clearly that the general rule is strict interpretation while special rule in the case of beneficial and promotional exemption is liberal interpretation. The two go very well with each other because they relate to two different sets of circumstances. 18. The Applicant also relies on the case of Commissioner of Central Excise, Surat-l Versus Favourite Industries 2012 (278) E.L.T. 145 (S.C.) = 2012 (4) TMI 65 – SUPREME COURT OF INDIA , wherein the Apex Court held as under: 31. Moreover, a liberal construction requires to be given to a beneficial notification. This Court in Commissioner of Customs (Preventive) Mumbai V. M. Ambalal and Company, (2011) 2 SCC 74 2010 (260) ELT. 487 (S.C.) = 2010 (12) TMI 16 – Supreme court of India , (in which one of us was the party) has observed that the beneficial notification providing the levy of duty at a concessional rate should be given a liberal interpre

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y of GST. Access charges cannot be subject to GST 20. The Applicant further submits that the Municipal Authorities also recover access charges for the purpose of right of way over the road to carry out excavation work. It is pertinent to note that the access charges for access of roads payable in conjunction with reinstatement charges to carry out the excavation work. It is pertinent to note that the access charges for access of roads are payable in conjunction with reinstatement charges to carry out the excavation work. 21. In terms of Section 2(30) CGST Act, composite supply means a supply made by a taxable person to a recipient consisting of two or more taxable supplies of goods or services or both, or any combination thereof, which are naturally bundled and supplied in conjunction with each other in the ordinary course of business, one of which is a principal supply. Further, in terms of Section 8 of the CGST Act, the tax liability of a composite supply comprising two or more suppl

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017. Therefore, GST would not be applicable on the access charges collected by the Municipal Authorities. In view of the above submissions, no GST would be leviable on reinstatement charges and access charges recovered by the Municipal Authorities. 03. CONTENTION – AS PER THE CONCERNED OFFICER The submission, as reproduced verbatim, could be seen thus- It appears from the application that M/S. RIL, a private company engaged in business of generation, transmission and distribution of electricity claimed that reinstatement charges and access charges paid to Municipality for restoration work of roads damaged by excavation work undertaken by the applicant are exempted from GST in terms of entry no. 4 of the Notification No. 12/2017- Central Tax (rate) dated 28.06.2017. In support of their contention, they have argued that since such services provided by a governmental authority (Municipality) fall under the function entrusted to a municipality under article 243W of the Constitution, qualif

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roads caused by natural wear and tear in the interest of local public utility In the instant case, the service provided by the Municipality towards restoration of damaged roads caused by excavation work done by M/S. RIL is purely for commercial purpose, upon consideration, doesn t come under purview of Article 243 W of the Constitution and hence not exempted in terms of Notification No; 12/2017- Central Tax (rate) dated 28.06.2017. This service of restoration work is being provided by the local authority to the assessee for furtherance of their business and hence attracts GST. In terms of entry no. S of the Notification No. 13/2017- Central Tax (rate) dated 28.06.2017, the leviable GST is payable by the recipient i.e. M/S. RIL on reverse charge basis. 04. HEARING The case was taken up for preliminary hearing on dt.31.01.2018 when Sh. Gopal Mundhra (Advocate) attended alongwith Shi Thomas. K. D (DGM). On dt.28.02.2018, Shi Gopal Mundhra -(Advocate), Ms. Ginita Bodani (Advocate) and Sh T

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ce Infrastructure Ltd MCGM GST Number 27AAALM0042L3Z4 Sr. No. SAC / Activity Code Description of Activity Amount 1 RI FOR RELIANCE ENERGY LTD 63690.00 2 997212 ACCESS CHARGES FOR POWER CABLES 1000.00 64690.00 90.00 90.00 64870.00 c. There is also a Demand Note No. 783184406 dt.16.10.2017 which informs the applicant in response to their application to undertake excavation in trench. The aforesaid amount has been informed. It is categorically mentioned that payment of reinstatement charges do not guarantee the grant of permission. d. The Permit issued for the location of the trench as specified therein states that simultaneous work order for reinstatement is issued to Ward Contractor and further that he will take up the work on the date of completion of the applicant s work mentioned in the permit or in phases as per clause no. 10 of the Permit. The applicant before us is Reliance Infrastructure Limited and the supply would be by the Municipal authorities. We may refer to the GST Act to

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he the person liable for paying the tax in relation to the supply of such goods or services or both The notification issued under the above sub-section has an entry thus- Notification No. 13/2017-Central/State Tax (Rate) In exercise of the powers conferred by sub-section (3) of section 9 of the Central/Maharashtra Goods and Services Tax Act, 2017, the Central/State Government on the recommendations of the council hereby notifies that on categories of supply of services mentioned in column (2) Table below; supplied by a person as specified in column (3) of the said Table, the whole of central / state tax leviable under section 9 Of the said Central Goods and Services Tax Act, shall be paid On reverse charge basis by the recipient Of the such services as specified in Column (4) of the said Table: Table Si No. Category of Supply of Services Supplier of service Recipient of Service (1) (2) (3) (4) 5 Services supplied by the Central Government, State Government, Union Territory of local aut

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tification issued for the purposes of section 9(3) of the GST Act, the applicant would be liable to pay tax in respect of the services received from the Municipal authorities. And therefore, the questions would have to be entertained. We begin to discuss the facts and the questions posed. Question 1 Whether reinstatement charges paid to Municipal Authorities would be liable to GST? We deal with the question by looking at the arguments of the applicant. It has been contended that the service falls under entry 4 of Notification No. 12/2017 -Central/State Tax (Rate) dated 28.06.2017. We shall reproduce the said entry thus- Si. No. Chapter, Section, Heading, Group or Service Code (Tariff) Description of Service Rate (per cent.)/CGST+MGST=IGST] Condition 4 Chapter 99 Services by Central Government, State Government, Union territory, local authority or governmental authority by way of any activity in relation to any function entrusted to a municipality under article 243 W of the constitution

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hority as may be necessary to enable them to carry out the responsibilities conferred upon them including those in relation to the matters listed in the Twelfth Schedule. The word Municipality is defined in the Constitution in the definitions in Article 243P(e)A As Municipality means an institution of self government constituted under article 243Q; Article 243Q says thus- 243Q (1) there shall be constituted in every State,- (a) a Nagar Panchayat (by whatever name called) for a transitional area, that is to say, an area in transition from a rural area to an urban area; (b) a Municipal Council for a smaller urban area; and (c) a Municipal Corporation for a larger urban area, in accordance with the provisions of this Part: ………………………………………………….. Since there is a reference to the Twelfth Schedule, we also refer to the same thus – TWELFTH SCHEDULE (Article 243

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, bus stops and public conveniences. 18. Regulation of slaughter houses and tanneries. As can be seen, Roads is a matter listed in the Twelfth Schedule. so there is a function of a Municipality in relation to Roads . We have seen above that the Constitution defines Municipality as an institution of self-government. The function as entrusted by the Constitution in relation to Roads is the construction of roads for the use by the general public. These are sovereign functions. The applicant is inter alia engaged in the business of generation, transmission and distribution of electricity. This calls for laying and maintenance of the power lines and other incidental work which requires the digging up of trenches. The Municipal Authorities grant the needful permissions. However, these permissions come with charges for restoring the street or pavement which has been dug up. Thus, the activity in the present case is the charges recovered by the Municipal Authorities to restore that portion of

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s up the road and there is restoration required to be done. This restoration work would not result in performing of the sovereign function. The sovereign has already been performed by constructing the road or undertaking maintenance works roads. The restoration work can be equated neither to construction work nor to maintenance work as suo-motu undertaken by the Municipal Authorities. The restoration charges are also not in the nature that the Municipal Authorities are performing any job of construction for the applicant. The street or pavement or road that is dug up is a general road. In view of all above, we are of the firm view that it should not be disputed that the recovering of charges for restoring the patches which have been dug up by business entities of the nature as the applicant cannot be equated to performing a sovereign function as envisaged under article 243 W of the Constitution. Further, we find that there is specific entry in Notification No. 12/2017-Central/State Tax

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, they would not be eligible for any exemption under GST. We find that the applicant has made a whole lot of arguments to hold that the recovering of charges for the restoration of the street or pavements amounts to a service activity in relation to a function entrusted to a municipality under article 243 W of the Constitution. However, we find that the arguments fail to make a point. As regards the case laws, we only observe that the facts and provisions aren t in pari materia with those in the present case. We find that there is no other entry in the Schedule contained in the Notification No.12/2017-Central/State Tax (Rate) for services exempted from GST which would cover the impugned transaction. Neither is a specific entry for the impugned transaction in the Notification No. 11/2017-CentraI/State Tax (Rate) for services taxable to GST at various rates. In view thereof, the residuary entry no.35 of the Notification No.11/2017-Central/State Tax (Rate) covering services nowhere else c

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nt and we agree with the same. However, the applicant has made a general query as regards access charges paid to Municipal Authorities. We have no further information than the receipt raised and the policy guidelines of MCGM. To determine whether it is a composite supply by Municipal Authorities, the available information is insufficient as the question posed is in respect of Municipal authorities in general and not any specific Municipal Authority with complete details and therefore is not answered. 06. In view of the detailed deliberations held hereinabove, it is ordered thus – ORDER (under section 98 of the Central Goods and Services Tax Act, 2017 and the Maharashtra Goods and Services Tax Act, 2017) NO.GST-ARA-11/2017/B- 14 Mumbai, dt. 21.03.2017 For reasons as discussed in the body of the order, the questions are answered thus – Question 1 Whether reinstatement charges paid to Municipal Authorities would be liable to GST? Question 2 Whether access charges paid to Municipal Authori

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2018 (5) TMI 275 – DELHI HIGH COURT – 2018 (12) G. S. T. L. 20 (Del.) – Filing of GST Tran-1/ Tran-2 forms – IT Grievance Redressal Mechanism to address the problems faced by taxpayers due to IT glitches on common portal (GSTN) – Held that: – one time facility of filing, so as to result in a deemed credit as though the assessee had filed the form before the expiry of the stipulated time, will be available only to those individuals or concerns which had approached the GST Council or the concerned commissionerate/portal/officials etc. through e-mail or other means of communication before the stipulated time – List on 9th April, 2018. – W.P.(C) 2192/2018 & CM APPL. 9058/2018, W.P.(C) 2332/2018, W.P.(C) 2333/2018 & CM APPL. 9801/2018, W.P.(C)

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technical obstacles/glitches confronted the assessees. It is further stated that assesses who could not file TRAN-I / TRAN-2 forms in time due to technical errors would be duly accommodated. Learned counsel for the GST Council relied upon written instructions received in this regard, which are quoted below:- 1. A procedure is being devised to put in place an IT Grievance Redressal Mechanism to address the problems faced by taxpayers due to IT glitches on common portal (GSTN). The proposed grievance redressal mechanism was placed before the GST Council, in its 26th meeting held on 10.03.2018, for approval. An in-principle approval has been obtained. The GST Implementation Committee (GIC) shall act as the IT-Grievance Redressal Committee. A c

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wed to be completed deeming that the condition of filing of form or return within the limitation prescribed in law or rule has been satisfied. It is stated that one time facility of filing – so as to result in a deemed credit as though the assessee had filed the form before the expiry of the stipulated time, will be available only to those individuals or concerns which had approached the GST Council or the concerned commissionerate/portal/officials etc. through e-mail or other means of communication before the stipulated time. It is also stated that if necessary it is open to the assessees to show if anyone of them was left out and for such purpose the concerned Nodal Officers are likely to be nominated. List on 9th April, 2018. – Case la

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2018 (4) TMI 810 – AUTHORITY FOR ADVANCE RULING , WEST BENGAL – 2018 (13) G. S. T. L. 84 (A. A. R. – GST), [2018] 2 GSTL (AAR) 64 (AAR) – Classification of supply – UPS along with the battery – Mixed supply / Composite supply – naturally bundled – whether such supplies can be treated as Composite Supply within the meaning of Section 2(30) of the CGST/WBGST Act, 2017? – Section 97 (1) of the GST Act – Held that: – The contract for the supply of a combination of UPS and battery, if not built as a composite machine, is not indivisible. The recipient can split it up into separate supply contracts if he chooses. The goods supplied in terms of such contracts are, therefore, no longer naturally bundled and cannot be treated as a composite supply.
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If a combination of goods that does not amount to a composite supply is being offered at a single price, such supplies are to be treated as mixed supplies. Mixed supply is defined under section 2(74) of the GST Act as one where “two or more in

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is admissible on this issue under Section 97 (1) of the GST Act. 2. The Applicant also declares that the issue raised in the application is not pending or decided in any proceedings under any provisions of the GST Act. The concerned officer, in his written response, raises no objection to the admission of the application. The application is, therefore, admitted. 3. For the purpose of taxation under the GST Act classification of the goods involved (UPS and battery) the classification of the goods has been determined in terms of Notification No. 01/2017-Central Tax (Rate) dated 28/06/2017 (1125-FT dated 28/06/2017 of the WBGST Act, 2017; (hereinafter referred to as the State Tax ), as amended vide Notification No. 41/2017-Central Tax (Rate) dated 14/11/2017 (2019-FT dated 14/11/2017 of the State Tax) (hereinafter collectively referred to as the Rate Notifications on Goods ). Schedule Serial No. Tariff Head Description Remarks IV 138 8506 Primary cells and primary batteries Omitted w.e.f

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mposite machine as the one consisting of two or more machines fitted together to form a whole. Such machines, as well as other machines designed for the purpose of performing two or more complementary or alternative functions, are to be classified as if consisting only of that component or as being that machine, which performs the principal function. 6. Applicability of Note 3 to Section XVI of the Tariff Act (hereinafter referred to as Note 3 ) is, however, not absolute, but subject to the context in which it is being applied. In the present context, Note 3 is applicable subject to the definitions of composite supply and its taxability under Section 8(a) of the GST Act. Section 2(30) of the GST Act defines Composite Supply as a supply made by a taxable person to a recipient consisting of two or more taxable supplies of goods or services or both, or any combination thereof, which are naturally bundled and supplied in conjunction with each other in the ordinary course of business, one o

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rgeable batteries, flywheel energy storage, capacitors etc. are examples of accumulators. In common usage in an electrical context, an accumulator usually refers to a lead-acid battery. Hereinafter, the battery referred to by the Applicant as being supplied along with UPS will refer to these accumulators. 8. A UPS is classified under Tariff Head 8504. It is an electrical apparatus that provides emergency power to a load when the input power source or mains power fails. A UPS differs from an auxiliary or emergency power system or standby generator in that it provides immediate protection from input power interruptions by supplying energy stored in batteries, supercapacitors or flywheels. The on-battery runtime of most UPS is relatively short but sufficient to start a standby power source or properly shut down the protected equipment. A UPS is typically used to protect hardware such as computers, data centres, telecommunication equipment or other electrical equipment where an unexpected

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28/06/2017 (1125-FT dated 28/06/2017 of the State tax). 10. But a standalone UPS and a battery can be separately supplied in retail set up. A person can purchase a standalone UPS and a battery from different vendors. The applicant himself admits that he supplies the battery and UPS as separate machines as well as UPS with battery. It is, therefore, obvious that the UPS and the battery have separate commercial values as goods and should be taxed under the respective tariff heads when supplied separately. 11. The question, however, is what should be the tariff head when the UPS and the battery are supplied as separate goods, but a single price is charged for the combination of the goods supplied as a single contract. The UPS and the battery, being supplied as separate goods, no longer form an integral part of a composite machine, but it remains to be discussed whether or not under these circumstances they may be considered as naturally bundled . The applicant insists that as the battery

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ination of goods that does not amount to a composite supply is being offered at a single price, such supplies are to be treated as mixed supplies. Mixed supply is defined under section 2(74) of the GST Act as one where two or more individual supplies of goods/services or any combination thereof, made in conjunction with each other by a taxable person for a single price where such supply does not constitute a composite supply . The stated Illustration to Section 2(74) of the GST Act refers to a package of items which can be supplied separately and are not dependent on each other, but for the instant purpose are being packaged together. 13. Based on information furnished by the Applicant and the Purchase Order supplied by them as Sample of the Billing done by them it is seen that though UPS and Battery are two different and independent items, they are billed together and a single peice is quoted for the sale. In view of the foregoing we rule as under RULING The supply of UPS and Battery

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2018 (4) TMI 809 – AUTHORITY FOR ADVANCE RULING , WEST BENGAL – 2018 (13) G. S. T. L. 89 (A. A. R. – GST) – Levy of GST – requirement of registration – charitable institutions – non-profit organisation set up by the Central Government under Clause 17 of the Iron & Steel (Control) Order vide SO 1567 dated 07/04/1971 – main source of income is interest – Applicant declares that it has not been registered under any of the repealed Acts and wants a ruling on whether it is required to be registered under the CGST / WBGST Act, 2017 – Held that: – Exemption under serial no. 1 of the Exemption Notifications for Services is available for charitable activities within the meaning of definition clause (r) of the above notifications – Activities of applicant not eligible for those exemption.
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Section 24 of the GST Act requires a person to be registered under certain circumstances even if his aggregate turnover does not exceed the threshold specified under Section 22(1) of the GST Act. It will

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18 Dated:- 21-3-2018 – Vishwanath Member And Partha Sarathi Dey Member Applicant s representative heard Sri Pritam Choudhury, CFA ORDER 1. The Applicant is a non-profit organisation set up by the Central Government under Clause 17 of the Iron & Steel (Control) Order vide SO 1567 dated 07/04/1971. The Government of India has since modified the composition and functions of the Applicant from time to time. Notification No. 4(5)/03-DI dated 18/08/2008 of the Ministry of Steel re-defines role and composition of the Applicant, which is further modified vide Notification No. 4(17)/2016 – SDI dated 13/04/2017. Apart from six members from the Iron & Steel industry, representing both the Public and the Private sectors, and one each, from the Railway Board, Export Promotion Council and Indian Statistical Institute, the Committee is chaired by a Joint Secretary, Ministry of Steel, Government of India. 2. The Applicant declares that it has not been registered under any of the repealed Acts

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tion, that the main source of the Applicant s income is interest accrued on the deposits and on the loans provided from the Steel Development Fund. A secondary source of income is the consideration received from sale of journals and periodicals and from renting accommodation in its guest houses. The aggregate turnover from these sources well exceeds the threshold of twenty lakh rupees and makes it liable for registration under Section 22 (1) of the GST Act, provided it does not make exclusively supply of goods or services that are not liable to tax or wholly exempt from tax under the GST Act. 5. The Applicant s supplies of journals and periodicals are wholly exempt under serial no. 120 of Notification No. 2/2017 – Central Tax (Rate) dated 28/06/2017 (1126 – FT dated 28/06/2017 under the WBGST Act, 2017; hereinafter referred to as the State Tax ) (Tariff head: 4907). 6. The Applicant s case is that its supplies of services are not taxable either. In annexure – I to the Application the A

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n clause (r) of the above notifications. It means activities relating to public health of specific categories, advancement of religion, spirituality or yoga, advancement of educational programmes or skill development relating to specific categories and preservation of environment, including watershed, forests and wildlife. None of the applicant s services are eligible under this clause. Serial no. 1 of the Exemption Notifications for Services is, therefore, not applicable. 7. Moreover, it is stated to be charging room rent below ₹ 1000/- per day per unit for accommodation in its guest houses, which is an exempt supply under serial no. 14 of the Exemption Notifications for Services. 8. The Applicant declares it makes no other supplies of goods or services. 9. However, as already seen, the main source of the Applicant s income is the interest consideration received by way of interest on services like extending deposits, loans or advances. This service, also, is wholly exempt under

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of the Integrated Goods and Services Tax Act. Section 24 is not subject to the provisions of Section 23 of the GST Act. If a person, therefore, is not liable to be registered for making exclusively exempt supplies but is liable to pay tax under Reverse Charges under Section 9(3) of the GST Act or 5(3) of the IGST Act, he shall be required to get himself registered under the GST Act, irrespective of the quantum of the aggregate turnover. 12. Based on information furnished along with the Application and the material presented at the time of Personal Hearing, it is, therefore, held that the Applicant is engaged exclusively in supplying goods and services that are wholly exempt from tax, and, therefore, not liable to be registered in accordance with the provisions under section 23(1) of the GST Act, subject to the condition that the Applicant is not otherwise liable to pay tax under the Reverse Charge mechanism under Section 9(3) of the GST Act or 5(3) of the IGST Act. 13. As the applican

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2018 (4) TMI 808 – AUTHORITY FOR ADVANCE RULING, WEST BENGAL – 2018 (12) G. S. T. L. 387 (A. A. R. – GST), [2018] 2 GSTL (AAR) 65 (AAR) – Overseas Education Advisory services – promotion of courses of foreign universities among prospective students – place of supply/provision of service – whether the service provided to the Universities abroad is to be considered “export” within the meaning of Section 2(6) of the Integrated Goods and Services Act, 2017, and, therefore, a zero-rated supply under the CGST / WBGST Act 2017?
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Held that: – in the case of Export of Services all the conditions as laid down under Section 2(6) of IGST Act 2017 is to be followed in totality without any violation, and that there is no scope of partial compliance of the conditions laid down therein.
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The Applicant is facilitating recruitment / enrolment of students to foreign Universities. Promotional service is incidental and ancillary to the above principal supply and the Applicant is paid considerati

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nd are taxable under the GST Act. This ruling is valid subject to the provisions under Section 103(2) until and unless declared void under Section 104(1) of the GST Act. – Case Number 05 of 2018 Dated:- 21-3-2018 – Vishwanath Member And Partha Sarathi Dey Member Applicant s representative Sri Pulak Kumar Saha, CFA, Partner, Price Waterhouse & Co LLP ORDER 1. The Applicant states that it provides Overseas Education Advisory whereby it promotes the courses of foreign universities among prospective students and wants a ruling on whether the service provided to the Universities abroad is to be considered export within the meaning of Section 2(6) of the Integrated Goods and Services Act, 2017, (hereinafter referred to as the IGST Act ), and, therefore, a zero-rated supply under the CGST / WBGST Act 2017 (hereinafter referred to as GST Act ). 2. The Applicant submits that it is providing the above services to the foreign universities, for which it receives consideration in convertible f

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as export within the meaning of section 2(6) of the IGST Act. 4. The concerned officer has objected to admission of the application on the ground that determination of the place of supply is beyond the jurisdiction of the Advance Ruling Authority. The objection appears misplaced. Although place of supply is an important factor in determining whether a provisioning of service qualifies as export, the issue, in the present context, is not determination of place of supply, but whether the applicant is providing the recipient an intermediary service and making a taxable supply of service and liable to pay tax thereon. Advance ruling is admissible on this question under section 97 (2)(a) & (e) of the GST Act. 5. There is no dispute regarding what the place of supply should be if the applicant is an agent providing an intermediary service to the foreign universities. Had there been such a dispute, this Authority would rather not provide a ruling on this issue at all. This Authority enter

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ities if the prospective students decide upon pursuing any course promoted by the Applicant. The Applicant receives consideration in the form of commission from the foreign University for these services rendered to prospective students. The Applicant, therefore, submits that the principal supply, therefore, is the service of promoting the courses of the Universities abroad, and the services incidental thereto are naturally bundled to the composite supply of business auxiliary services. 8. The applicant further states that it is not acting as an intermediary or agent in terms of section 2(13) of the IGST Act, as it supplies the main service (i.e. promotion of the University courses) on its own account. It does not facilitate provision of service by such Universities to the students. Its role is limited to only promoting the courses in India and thus, earns consideration out of it. The Applicant says that the agreements between the Universities abroad and the Applicant clarify that the r

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pient is located outside India and is not an establishment of a distinct person in accordance with Explanation 1 to Section 8 of the IGST Act. The place of supply of the services is outside India in terms of Section 13(2) of the IGST Act. The supply of services by the applicant should, therefore, be treated as Export of Service within the meaning of Section 2(6) of the IGST Act. 11. Section 2(6) of the Integrated Goods And Services Tax Act, 2017, reads as export of services means the supply of any service when – (i) the supplier of service is located in India; (ii) the recipient of service is located outside India; (iii) the place of supply of service is outside India; (iv) the payment for such service has been received by the supplier of service in convertible foreign exchange; and (v) the supplier of service and the recipient of service are not merely establishments of a distinct person in accordance with Explanation 1 in Section 8; 12. It is, thus, evident from the above citation th

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his agreement under University; a. is not one of employer and employee; and b. is not one of principal and agent. 15. The nature of the relationship should, therefore, be ascertained from other clauses of the Agreement. Under Clause 3.1 of the Agreement the Education Agent must promote the courses of the University to find out suitable prospective students and assist in recruitment of students in accordance with the procedures and requirements of the University. The Education Agent must assist the prospective students with all necessary information and assistance in completing the forms and submitting them to the University. While doing so, the Education Agent must meet the enrolment and other performance targets mutually agreed upon. Clause 4.1 puts the Education Agent under obligation to collect all fees and charges payable from the prospective students and forward the same to the University and ensure that relevant fees and charges accompany all applications and acceptance of offer

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ess the students get enrolled through it. If the students get enrolled directly by the University through distant education or online services, the Applicant will not be paid any consideration whether or not it has provided any promotional service (Clause 8.3 of the Agreement). In fact, the Applicant is not allowed to undertake any promotional or advertising activity without prior written approval from the University [clause 4.4(h) of the Agreement]. Apart from the above consideration received from the University, the Applicant is not allowed to receive any fees or charges from the students or deduct anything from the charges or fees payable by the students to the University [clause 4.4(i) of the Agreement]. 17. The Applicant argues at the time of Personal Hearing that payment of consideration based on recruitment is merely the mechanics for determining the quantum of consideration payable. It has no bearing on the applicant s standing as an independent service provider. We fail to app

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ause 2.1 of the Background forming part of the Agreement clearly says, The University engages the Education Agent to be its representative to perform the Services from the commencement date in the Territory and on the terms set out in this Agreement until the Expiry date. It is, therefore, clear that whatever services the applicant provisions are provided only as a representative of the University and not as an independent service provider. 19. Being an intermediary service provider, the place of the Applicant s supply shall be determined under section 13(8)(b) of the IGST Act and not under section 13(2) of the IGST Act. The place of supply under the above legal framework is the territory of India. As the condition under section 2(6)(iii) of the IGST Act is not satisfied, the Applicant s service to the foreign universities does not qualify as Export of Services , and is, therefore, taxable under the GST Act. In view of the foregoing we rule as under RULING The services of the applicant

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2018 (3) TMI 1452 – KERALA HIGH COURT – [2018] 2 GSTL 123 (Ker) – Detention of goods – Section 129 of the CGST as also the Kerala State Goods and Services Tax Act – Held that: – it is for the petitioner to raise those grounds before the detaining authority itself at the first instance. In the said view of the matter, the writ petition is disposed of directing the respondent to complete the adjudication provided for under Section 129 of the statutes – petition disposed off. – W. P. (C). No. 9182 of 2018 Dated:- 21-3-2018 – MR. P. B. SURESH KUMAR, J. For The Petitioner : Sri.S. Anil Kumar (Trivandrum), Sri. K.S. Hariharan Nair And Sri. M.rajagopal For The Respondent : Sri. V. K. Shamsudheen JUDGMENT A machinery transported by the petitioner

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GST – States – 38/1/2017-Fin(R&C)(50) – Dated:- 21-3-2018 – GOVERNMENT OF GOA Department of Finance Revenue & Control Division – Notification 38/1/2017-Fin(R&C)(50) In exercise of the powers conferred by section 164 of the Goa Goods and Services Tax Act, 2017 (Goa Act 4 of 2017), the Government of Goa hereby makes the following rules further to amend the Goa Goods and Services Tax Rules, 2017, namely:- (1) These rules may be called the Goa Goods and Services Tax (Second Amendment) Rules, 2018. (2) Save as otherwise provided in these rules, they shall come into force on such date as the Government may, by notification in the Official Gazette, appoint. 2. In the Goa Goods and Services Tax Rules, 2017.- (i) With effect from the 7th day of March, 2018, in rule 117, in sub-rule (4), in clause (b), for sub-clause (iii), the following shall be deemed to have been substituted, namely:- (iii) The registered person availing of this scheme and having furnished the details of stock held b

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ormation as may be required on the common portal and a unique number will be generated on the said portal: Provided that the transporter, on an authorization received from the registered person, may furnish information in Part A of FORM GST EWB-01, electronically, on the common portal along with such other information as may be required on the common portal and a unique number will be generated on the said portal: Provided further that where the goods to be transported are supplied through an e-commerce operator or a courier agency, on an authorization received from the consignor, the information in Part A of FORM GST EWB-01 may be furnished by such e-commerce operator or courier agency and a unique number will be generated on the said portal: Provided also that where goods are sent by a principal located in one State or Union territory to a job worker located in any other State or Union territory, the e-way bill shall be generated either by the principal or the job worker, if register

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ply or a delivery challan, as the case may be, issued in respect of the said consignment and also includes the central tax, State or Union territory tax, integrated tax and cess charged, if any, in the document and shall exclude the value of exempt supply of goods where the invoice is issued in respect of both exempt and taxable supply of goods. (2) Where the goods are transported by the registered person as a consignor or the recipient of supply as the consignee, whether in his own conveyance or a hired one or a public conveyance, by road, the said person shall generate the e-way bill in FORM GSTEWB-01 electronically on the common portal after furnishing information in Part B of FORM GST EWB-01. (2A) Where the goods are transported by railways or by air or vessel, the e-way bill shall be generated by the registered person, being the supplier or the recipient, who shall, either before or after the commencement of movement, furnish, on the common portal, the information in Part B of FOR

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ay bill in FORM GST EWB-01 on the common portal in the manner specified in this rule: Provided also that where the goods are transported for a distance of upto fifty kilometers within the State or Union territory from the place of business of the consignor to the place of business of the transporter for further transportation, the supplier or the recipient, or as the case maybe, the transporter may not furnish the details of conveyance in Part B of FORM GST EWB-01. Explanation 1.- For the purposes of this sub-rule, where the goods are supplied by an unregistered supplier to a recipient who is registered, the movement shall be said to be caused by such recipient if the recipient is known at the time of commencement of the movement of goods. Explanation 2.- The e-way bill shall not be valid for movement of goods by road unless the information in Part-B of FORM GST EWB-01 has been furnished except in the case of movements covered under the third proviso to sub-rule (3) and the proviso to

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egistered or enrolled transporter for updating the information in Part B of FORM GST EWB-01 for further movement of the consignment: Provided that after the details of the conveyance have been updated by the transporter in Part B of FORM GST EWB-01, the consignor or recipient, as the case may be, who has furnished the information in Part A of FORM GST EWB-01 shall not be allowed to assign the e-way bill number to another transporter. (6) After e-way bill has been generated in accordance with the provisions of sub-rule (1), where multiple consignments are intended to be transported in one conveyance, the transporter may indicate the serial number of e-way bills generated in respect of each such consignment electronically on the common portal and a consolidated e-way bill in FORM GST EWB-02 may be generated by him on the said common portal prior to the movement of goods. (7) Where the consignor or the consignee has not generated the e-way bill in FORM GST EWB-01 and the aggregate of the

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RM GST EWB-01, he shall be informed electronically, if the mobile number or the e-mail is available. (9) Where an e-way bill has been generated under this rule, but goods are either not transported or are not transported as per the details furnished in the e-way bill, the e-way bill may be cancelled electronically on the common portal within twenty four hours of generation of the e-way bill: Provided that an e-way bill cannot be cancelled if it has been verified in transit in accordance with the provisions of rule 138B: Provided further that the unique number generated under sub-rule (1) shall be valid for a period of fifteen days for updation of Part B of FORM GST EWB-01. (10) An e-way bill or a consolidated e-way bill generated under this rule shall be valid for the period as mentioned in column (3) of the Table below from the relevant date, for the distance, within the country, the goods have to be transported, as mentioned in column (2) of the said Table:- Sl. No. Distance Validity

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e counted from the time at which the e-way bill has been generated and each day shall be counted as the period expiring at midnight of the day immediately following the date of generation of e-way bill. Explanation 2.- For the purposes of this rule, the expression Over Dimensional Cargo shall mean a cargo carried as a single indivisible unit and which exceeds the dimensional limits prescribed in rule 93 of the Central Motor Vehicle Rules, 1989, made under the Motor Vehicles Act, 1988 (59 of 1988). (11) The details of the e-way bill generated under this rule shall be made available to the- (a) supplier, if registered, where the information in Part A of FORM GST EWB-01 has been furnished by the recipient or the transporter; or (b) recipient, if registered, where the information in Part A of FORM GST EWB-01 has been furnished by the supplier or the transporter, on the common portal, and the supplier or the recipient, as the case may be, shall communicate his acceptance or rejection of the

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a container freight station for clearance by Customs; (d) in respect of movement of such goods and within such areas in the State and for values not exceeding such amount as the Commissioner of State Tax, in consultation with the Principal Chief Commissioner//Chief Commissioner of Central Tax, may, subject to conditions that may be specified, notify; (e) where the goods, other than de-oiled cake, being transported, are specified in the Schedule appended to notification No. 2//2017-Central tax (Rate) dated the 28th June, 2017 published in the Gazette of India, Extraordinary, Part II, Section 3, sub-section (i), vide number G.S.R 674 (E) dated the 28th June, 2017 as amended from time to time; (f) where the goods being transported are alcoholic liquor for human consumption, petroleum crude, high speed diesel, motor spirit (commonly known as petrol), natural gas or aviation turbine fuel; (g) where the supply of goods being transported is treated as no supply under Schedule III of the Act;

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goods caused by defence formation under Ministry of defence as a consignor or consignee; (l) where the consignor of goods is the Central Government, Government of any State or a local authority for transport of goods by rail; (m) where empty cargo containers are being transported; and (n) where the goods are being transported upto a distance of twenty kilometers from the place of the business of the consignor to a weigh bridge for weighment or from the weigh bridge back to the place of the business of the said consignor subject to the condition that the movement of goods is accompanied by a delivery challan issued in accordance with rule 55. Explanation.- The facility of generation, cancellation, updation and assignment of e-way bill shall be made available through SMS to the supplier, recipient and the transporter, as the case may be. ANNEXURE [See rule 138 (14)] S. No. Description of Goods (1) (2) 1. Liquefied petroleum gas for supply to household and non domestic exempted category (

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shall apply in case of movement of goods by rail or by air or vessel. (2) A registered person may obtain an Invoice Reference Number from the common portal by uploading, on the said portal, a tax invoice issued by him in FORM GST INV-1 and produce the same for verification by the proper officer in lieu of the tax invoice and such number shall be valid for a period of thirty days from the date of uploading. (3) Where the registered person uploads the invoice under sub-rule (2), the information in Part A of FORM GST EWB-01 shall be auto-populated by the common portal on the basis of the information furnished in FORM GST INV-1. (4) The Commissioner may, by notification, require a class of transporters to obtain a unique Radio Frequency Identification Device and get the said device embedded on to the conveyance and map the e-way bill to the Radio Frequency Identification Device prior to the movement of goods. (5) Notwithstanding anything contained in clause (b) of sub-rule (1), where circu

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physical verification of conveyances shall be carried out by the proper officer as authorised by the Commissioner or an officer empowered by him in this behalf: Provided that on receipt of specific information on evasion of tax, physical verification of a specific conveyance can also be carried out by any other officer after obtaining necessary approval of the Commissioner or an officer authorised by him in this behalf. ; (v) for rule 138C, the following rule shall be substituted, namely:- 138C. Inspection and verification of goods.- (1) A summary report of every inspection of goods in transit shall be recorded online by the proper officer in Part A of FORM GST EWB-03 within twenty four hours of inspection and the final report in Part B of FORM GST EWB-03 shall be recorded within three days of such inspection. (2) Where the physical verification of goods being transported on any conveyance has been done during transit at one place within the State or Union territory or in any other St

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Transportation PART-B B.1 Vehicle Number for Road B.2 Transport Document Number/Defence Vehicle No./ Temporary Vehicle Registration No./Nepal or Bhutan Vehicle Registration No. Notes: 1. HSN Code in column A.8 shall be indicated at minimum two digit level for taxpayers having annual turnover upto five crore rupees in the preceding financial year and at four digit level for taxpayers having annual turnover above five crore rupees in the preceding financial year. 2. Document Number may be of Tax Invoice, Bill of Supply, Delivery Challan or Bill of Entry. 3. Transport Document number indicates Goods Receipt Number or Railway Receipt Number or Forwarding Note number or Parcel way bill number issued by railways or Airway Bill Number or Bill of Lading Number. 4. Place of Delivery shall indicate the PIN Code of place of delivery. 5. Place of dispatch shall indicate the PIN Code of place of dispatch. 6. Where the supplier or the recipient is not registered, then the letters URP are to be fille

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antity of goods Actual value of the Goods Tax payable Integrated tax Central tax State or Union territory tax Cess Penalty payable integrated tax Central tax State or Union territory tax Cess Details of Notice Date Number Summary of findings FORM GST EWB-04 (See rule 138D) Report of detention E-Way Bill Number Approximate Location of detention Period of detention Name of Officer in-charge (if known) Date Time FORM GST INV – 1 (See rule 138A) Generation of Invoice Reference Number IRN: Date: Details of Supplier GSTIN Legal Name Trade name, if any Address Serial No. of Invoice Date of Invoice Details of Recipient (Billed to) Details of Consignee (Shipped to) GSTIN or UIN, if available Name Address State (name and code) Type of supply – B to B supply B to C supply Attracts Reverse Charge Attracts TCS GSTIN of operator Attracts TDS GSTIN of TDS Authority Export Supplies made to SEZ Deemed export Sl.No. Description of Goods HSN Qty. Unit Price(per unit) Total value Discount, if any Taxable

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The Tripura State Goods and Services Tax (Second Amendment) Rules, 2018 – GST – States – F.1-11(91)-TAX/GST/2018(Part) – Dated:- 21-3-2018 Notification – Circular

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Goods and Services Tax – Classification of imported goods – GSL ARTEMIA BRINE SHRIMP EGGS – petitioner sought to avail concessional duty (preferential rate of 0% IGST as against 5% IGST) by relying up

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Goods and Services Tax – GST – By: – Altamush Zafar – Dated:- 20-3-2018 Last Replied Date:- 21-3-2018 – Only few days left to file the TRAN-2 form. The taxpayers need to know some essential points which are often being ignored regarding the form: The form is only for traders. It is only for traders who were unregistered in VAT. The benefits of credits received are to be passed on by way of reduced pricing. This doesn't just mean that the benefits are to be passed on, it also means that details of all the tax payers who have filed this form will be sent to the Anti- Profiteering Committee and the tax officials will surely pay you a visit if it is a substantial amount. The document of procurement is required to avail the credit. This doc

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1 in serial 7 of whether having duty paying document- 'yes' or 'no' should not have given. – Reply By Ganeshan Kalyani – The Reply = nevertheless nice article and timely written. it will be an alarm to the querist. thanks. – Reply By Ashwarya Agarwal – The Reply = Sir in my opinion, there is no such condition that It is only for traders who were unregistered in VAT. – Reply By Altamush Zafar – The Reply = The availment of credit through TRAN-2 is allowed through proviso to section 140(3). Section 140(3) is for certain specific persons and those who were not liable to be registered under previous laws (meaning not registered). Therefore the proviso will be read subject to the section except for the sole condition written in t

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Goods and Services Tax – GST – By: – Priya Sharma – Dated:- 20-3-2018 – The difficulties in the new taxation regime have resulted in the reduction of the taxation revenue. The government marked the month of September after which the revenue started hitting the bottom. As the loss cannot be ignored, the government has assured the sustenance of the taxation processes like return filings and e-way billing. During the roll-out, the serviceableness of GST was not in its optimum state and hence toppled. However, the records show that the GST collections averaged around INR 90,000 till the month of September 2017. Not only had the taxpayers of the nation, but the IT industry also suffered due to the varying tax rates and processes of the Goods an

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Indian IT sector has witnessed a slight decline in the profit margins. Analysis declared evolving GST the reason behind the reduced revenue. Here s how software made the taxation regime simpler: Time and cost-effectiveness- With the help of GST software, the taxpayers have been able to cut short the tediousness of the entire regime. Otherwise, the businesses would hire tax consultants adding a huge cost to the company. And if done manually, the compliance would take time more than expected that resulted in the focus cutback in the core competencies. Automated processes- Every GST software comes integrated with a high-end technology. Such advanced technology requires the least input from the taxpayer s end. The user is not required to fill

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T software provider and the government. The enforcement along with an inspection Highlighting the positive aspects of the Goods and Services Tax Act, the government officials chew upon the factors that are hindering the regime s growth. The government has planned to enforce measures that could make GST compliance easy. For that matter, the e-way bill has been implemented and over hundreds of goods and services exempted. Still, there are few pressing issues that have been curbing the potential of the new taxation regime. The taxpayers complained about the delayed update of the tax payments on the GSTN portal. And most importantly, the blockage of the refunds have enraged the people the most. There are several other issues like multiplicity i

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2018 (8) TMI 480 – CESTAT KOLKATA – TMI – GTA Service – case of appellant is that the service tax pertaining to the GTA service in respect of transport invoices issued by the transporter, had also been paid by the transporter – Held that:- The ld.Advocate further submits that there is no discrepancy in the figure of ₹ 13,261/- upto 30th June, 2012, but the demand of ₹ 59,349/- for the balance period, should be ₹ 38,848/- only. Since, the service tax to that extent had been charged by the transporter, which was duly paid by the appellant assessee. This fact has to be verified by the adjudicating authority.
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The penalty imposed under Section 77 (1)(c)(ii) and Section 78 by invoking the provision of Section 80 is set as

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ure to pay service tax under the category of transport of goods by road under reverse charge. The adjudicating authority confirmed the demand of service tax of ₹ 1,37,225/- along with interest and imposed equal penalty under Section 78 of the Finance Act, 1994 and penalty of ₹ 5,000/- under Section 77 (1)(c)(ii). On Appeal, the Commissioner (Appeals) modified the adjudication order and confirmed the demand of service tax of ₹ 59,349/- along with interest. He reduced the penalty amount under Section 78 of the said Act to ₹ 59,349/- and also upheld the penalty of ₹ 5,000/- under Section 77(1)(c)(ii). Hence, the present appeal before the Tribunal. 3. The ld.Advocate appearing on behalf of the appellant, submits th

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taxation on behalf of the appellant and contrary to the provisions of the Statute. The ld.Commissioner (Appeals) verified the entire invoices and payments for the period as follows : 2009-2010 20110-2011 2011-2012 2012-2013 Rs.16,425/- Rs.23,035/- Rs.25,155/- Rs.13,261/- (upto 30.06-12) Accordingly, the Commissioner (Appeals) held that the demand of service tax is not sustainable in the present appeal and he modified the demand to the extent of ₹ 59,349/- for the period 01.07.2012 to 31.03.2013. The ld.Advocate for the appellant submits that there is a discrepancy in the amount of service tax as confirmed by the ld.Commissioner (Appeals). He has filed copies of statement of carriage inward for the period 2012-2013. The ld.Advocate fu

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2018 (7) TMI 1374 – CESTAT KOLKATA – TMI – Penalties – the allegation is that the appellants have made expenditure in foreign currency towards the professional and consultancy charges in respect of which they had discharged the service tax liability – Held that:- Regarding service tax demand of ₹ 13,01,708/-, the appellants have reversed the amount.
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As regards, service tax demand for the period, 2010-2011 and 2011-2012, they have paid the entire demand of service tax along with interest and the same stands appropriated by the adjudicating authority. It is also observed that the demand of ₹ 40,000/- being late fees for the service tax return for the period April, 2011 to September, 2011 and October, 2011 to March, 2012, has also been paid and there is no occasion to impose and the separate penalty for the same and the Commissioner (Appeals) has rightly set aside the same – Since the appellant-assessee has paid the entire amount of service tax along with interest befo

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that the appellants have availed both Cenvat Credit and abatement under Notification 01/2006-ST dated 01.03.2006 as amended. For the year 2010-2011 & 2011-2012, the allegation is that the appellants have made expenditure in foreign currency towards the professional and consultancy charges in respect of which they had discharged the service tax liability. Show-cause -cum-demand notice dated 19.09.2014 was issued. The adjudicating authority confirmed the demand of ₹ 13,01,708/- for the period 2009-2010 and imposed equal penalty under Section 78 of the Finance Act, 1994. For the period, 2010-2011, he confirmed the demand of ₹ 1,11,745/- and also imposed equal penalty under Section 78 of the Finance Act, 1994. For the period, 2011-20112he confirmed the demand of ₹ 2,56,779/- & ₹ 19,013/- and also imposed equal penalty under Section 78 of the Finance Act, 1994. He also confirmed the demand of ₹ 40,000/- as late fees upon the respondent-assessee in term

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d that they had deposited the late fees towards late submission of return for the period April, 2011 to September, 2011 and October, 2011 to March, 2012 vide Challan No.00316 and 00320 both dated 22.04.2013. I find that the lower authority has failed to consider the said paid up amount towards late fees in r/o submission of ST-3 Return. I appropriated the said deposited amount to the Govt. exchequer. Further, it appears that the lower authority has also imposed penalty of ₹ 40,000/- upon the notice for delayed submission of return for the above mentioned two terms i.e. from April, 2011 to September, 2011 and October, 2011 to March, 2012 under Rule 7C of Service Tax Rules, 1994 for violation of Section 70 of the Act. On this ground, I find that in Rule 7C of Service Tax Rules, there is provision that Where the assessee has paid the amount as prescribed under this Rule for delayed submission of return, the proceedings, if any, in respect of such delayed submission of return shall b

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