Nimbeshwar Mahadeo Built Homes, Nimbeshwar Mahadeo Construction, Nimbeshwar Mahadeo Builder, Nimbeshwar Mahadeo Home Makers Versus Commissioner of CGST, Navi Mumbai

Nimbeshwar Mahadeo Built Homes, Nimbeshwar Mahadeo Construction, Nimbeshwar Mahadeo Builder, Nimbeshwar Mahadeo Home Makers Versus Commissioner of CGST, Navi Mumbai
Service Tax
2018 (5) TMI 981 – CESTAT MUMBAI – TMI
CESTAT MUMBAI – AT
Dated:- 20-4-2018
APPEAL Nos. ST/85456, 85458-85460/2018 – A/86105-86108/2018
Service Tax
Mr. Ramesh Nair, Member (Judicial)
Shri D.R. Jakotia, Chartered Accountant, for appellant
Shri Atul Sharma, Assistant Commissioner (AR), for respondent
In all the four appeals, the appellants have challenged imposition of penalty under Section 78 of the Finance Act, 1994. The appellants are not disputing the levy of service tax and interest which were paid in case of Nimbeshwar Mahadeo Built Home

= = = = = = = =

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

= = = = = = = =

given the judgment in 2012. Subsequently, the matter was challenged before the Hon'ble Supreme Court, which is pending. In these facts, the intention to evade the service tax does not establish. Hence the penalty under Section 78 was not imposable.
3. Shri Atul Sharma, learned Assistant Commissioner (AR) appearing on behalf of the Revenue, reiterates the finding of the impugned order. He submits that the appellants knowingly neither paid the service tax in time nor declared the value to the department. Therefore, they had clear intention to evade the payment of service tax. The Commissioner (Appeals) has already given the relief of 50% of the penalty. Therefore, no further leniency can be shown to the appellants.
4. I have carefully cons

= = = = = = = =

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

= = = = = = = =

Kansai Nerolac Paints Ltd. Versus Commissioner of GST, Mumbai

Kansai Nerolac Paints Ltd. Versus Commissioner of GST, Mumbai
Service Tax
2018 (5) TMI 673 – CESTAT MUMBAI – TMI
CESTAT MUMBAI – AT
Dated:- 20-4-2018
APPEAL Nos. ST/87792, 87798/2017 – ORDER No. A/86095-86096/2018
Service Tax
Hon'ble Mr. Ramesh Nair, Member (Judicial)
Shri Mehul Jivani, Chartered Accountant, for appellant
Shri Vivek Dwivedi, Assistant Commissioner (AR), for respondent
ORDER
A show cause notice was issued for denying and recovery of cenvat credit under Rule 14 of Cenvat Credit Rules, 2004 on the input service distributed. The demand was confirmed and upheld by the Commissioner (Appeals). Therefore, the appellant is before me.
2. Shri Mehul Jivani, learned Chartered Accountant appearing on behalf of

= = = = = = = =

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

= = = = = = = =

d from the input service distributor who has distributed the service credit to their respective factory on the ground that the input service viz. air travel agent service, is not admissible as the service related to business activity shall exclude on the definition of input service with effect from 1.4.2011. I find that Rule 14 applies to the person who avails credit wrongly which is recoverable. In the present case, the appellant has not availed the credit whereas they have distributed the input service credit to their respective manufacturing unit who, in turn, availed the credit. If at all credit has to be denied, it can be denied at the end of such manufacturing unit which has availed the cenvat credit. Input service distributor does no

= = = = = = = =

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

= = = = = = = =

Accenture Solutions Pvt. Ltd. Versus Commissioner of CGST, Navi Mumbai

Accenture Solutions Pvt. Ltd. Versus Commissioner of CGST, Navi Mumbai
Service Tax
2018 (5) TMI 672 – CESTAT MUMBAI – TMI
CESTAT MUMBAI – AT
Dated:- 20-4-2018
Appeal No. ST/85388/2018 – Order No. A/86111/2018
Service Tax
Hon'ble Mr. Ramesh Nair, Member (Judicial)
Shri Prasad Paranjape, Advocate, for appellant
Shri M.P. Damle, Assistant Commissioner (AR), for respondent
ORDER
The appellants is engaged in the business of providing information technology enabled business process and outsourcing services. Show cause notice was issued alleging the appellant's receipt of hosting and networking services falling under the category of management, maintenance or repair service, management hosting network services from a company, Sunguard Availability Services LP, located outside India and made payment to them in foreign currency i.e. in US Dollar, but the appellant has not discharged the service tax on reverse charge mechanism on such payments in contravention of Section

= = = = = = = =

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

= = = = = = = =

the service tax for the reason that the appellant had a bona fide belief that the service being provided outside India is not liable to service tax in terms of Rule 3(ii) of the Taxation of Services (Provided from Outside India and Received in India) Rules, 2006. Therefore, under that impression, the appellant did not discharge the service tax in time. He submits that the appellant is a 100% export oriented service provider and their 100% service is exported. Therefore, whatever service tax is paid on the input services, the same is cenvatable and refundable under Rule 5 of the Cenvat Credit Rules, 2004. Therefore, the case is clearly of revenue neutrality. Therefore, the intention to evade payment of service tax does not exist. He placed reliance on the following judgments:-
(i) JPB Mills Pvt. Ltd. – 2016 (46) STR (Tri.-Chennai);
(ii) Punjab Chemicals & Crop Protection Ltd. – 2017 (47) STR (Tri.-Chand.);
(iii) Dinesh M. Kotian – 2016 (42) STR 772 (Tri.- Mumbai);
(iv) Gujar

= = = = = = = =

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

= = = = = = = =

only for waiver of penalty imposed under Section 76 and 78. It is a fact that the appellant is 100% export oriented service provider. In such case, whatever the input service suffered the service tax, the said service tax is refundable under Rule 5 of the Cenvat Credit Rules, 2004. Therefore, even though, had the appellant paid the service tax in time, they would have got the refund of the same from the department. Therefore, neither any gain or loss either to the department or to the assessee. In these circumstances, the allegation of intention to evade payment of service tax cannot be made against the appellant, which is the essential ingredient for imposing penalty. In the given facts, the entire case is of revenue neutrality. The judgments relied upon by the learned counsel directly deal with the issue. In the case of JPP Mills Pvt. Ltd. (supra), the Division Bench of this Tribunal has observed as under:-
“12. However, we are also of the view that this service is an “input servi

= = = = = = = =

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

= = = = = = = =

om 1-4-2008, the Government exempted such taxes subject to certain conditions by issuing Notification 17/2008-S.T. Part of the demand is after 1- 4-2008. Thus this is not just a case of revenue neutrality; but a special case of revenue-neutrality involving the same person taking credit of tax paid and also being eligible for relief from such tax incidence on account of the fact that services are used for export of goods. In such circumstances, there is no justification to slap a tax liability on an exporter of goods invoking extended period of time. Therefore, the allegation of suppression is not sustainable.”
In the case of Gujarat Borosil Ltd. (supra), this Tribunal passed the following order:-
“7. On the issue of applicability of the provisions of Section 73(3) of the Finance Act, 1994 to the appellant's case, I find that in this case the appellant, on being pointed out by the DGCEI, deposited the entire amount of service tax liability along with interest on 18-9-2010 much befor

= = = = = = = =

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

= = = = = = = =

the Government. This view was upheld by the Hon'ble High Court of Karnataka in the case of C. Ahead Info Technologies India P. Ltd. In that case, the Revenue was challenging the order passed by the Tribunal which has set aside the penalty under Section 78 of the Finance Act, 1994, observing that the records indicate the absence of intent to evade duty.
6. In the case of Essar Steel Ltd. – 2009 (13) S.T.R. 579 (Tri.- Ahmd.) also, in the case of ECB Facility, this Tribunal took a view that when the situation is revenue neutral and the appellant manufacturer is entitled to Cenvat credit, it cannot be said that there was an intent to evade duty and extended period can be invoked.
7. In view of the precedent decisions discussed above which are applicable to the facts of this case, we find that penalty imposed on the appellant cannot be sustained. Therefore, the penalty imposed upon the appellant is set aside and Stay Petition as well as the appeal are disposed off in above terms.”

= = = = = = = =

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

= = = = = = = =

RCM ON FREIGHT

RCM ON FREIGHT
Query (Issue) Started By: – PAWANKUMAR GARG Dated:- 19-4-2018 Last Reply Date:- 8-5-2018 Goods and Services Tax – GST
Got 7 Replies
GST
SIR,
I AM PURCHASING POULTRY FEED AND PAID FREIGHT. WHEATHER I AM LIABLE TO PAY GST UNDER RCM @ 5% ON PAYMENT OF FREIGHT. THE COMMODITY IS TAX FREE.
Reply By Ganeshan Kalyani:
The Reply:
GST is payable on the freight amount paid by you.
Reply By PAWANKUMAR GARG:
The Reply:
SIR, CAN WE CLAIM TAX PAID ON FREIGHT AS ITC
Reply By S

= = = = = = = =

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

= = = = = = = =

Service by outside canteen operators-Outdoor catering or Supply of Food

Service by outside canteen operators-Outdoor catering or Supply of Food
Query (Issue) Started By: – ROHIT GOEL Dated:- 19-4-2018 Last Reply Date:- 22-4-2018 Goods and Services Tax – GST
Got 3 Replies
GST
Hi Sir,
One of our client is a trust institution operating colleges. The institution has contracted with outside vendors for operating a canteen at its hostel premises wherein the vendors operate the kitchen, obtain all vegetables and thereafter also operate the hostel mess. The charges for such services are payable to the vendors on the basis of a fixed per meal charges. Charges for such hostel mess are collected from students upfront on lump sum basis.
My query is whether this would constitute service of outdoor catering by

= = = = = = = =

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

= = = = = = = =

alled vendor is actually contractor-cum-outdoor caterer. His main activity is outdoor catering and conforms to the definition of 'supply' in GST.
Reply By CASusheel Gupta:
The Reply:
Dear Rohit
In your case, the institution is collecting the charges from students and paying to the contractor on meal basis and the contractor is not collecting any amount from the students. As such the contractor is supplying to the institution and institution is supplying the the students (thought delivery to the students may be being done by the contractor) .
You need to refer to the corrigendum to the circular no. 28/02/2018-GST which clearly states that
(1) "If the catering services is one of the services provided by an educational instit

= = = = = = = =

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

= = = = = = = =

RCM ON TRANSPORT

RCM ON TRANSPORT
Query (Issue) Started By: – SURYAKANT MITHBAVKAR Dated:- 19-4-2018 Last Reply Date:- 22-4-2018 Goods and Services Tax – GST
Got 2 Replies
GST
While making RCM under transportation charges which document to be prepared for the same.
Reply By Ganeshan Kalyani:
The Reply:
In my view , self invoicing is required to be generated.
Reply By CS SANJAY MALHOTRA:
The Reply:
Payment voucher also wherever Advance payment is made to transporter and liability is under RCM

= = = = = = = =

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

= = = = = = = =

e way bill

e way bill
Query (Issue) Started By: – Arun Aggarwal Dated:- 19-4-2018 Last Reply Date:- 20-4-2018 Goods and Services Tax – GST
Got 5 Replies
GST
sir
I would like to know if an e way bill is to be generated for bullion/gold , jewellery and articles of gold.
Notification if any in this regard would be welcomed
Arun
Reply By Ganeshan Kalyani:
The Reply:
In my view yes e way bill is required to be generated.
Reply By KASTURI SETHI:
The Reply:
Goods covered under Annexure to Rul

= = = = = = = =

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

= = = = = = = =

Does GST Zero-Rating Apply to Duty-Free Sales at IGI Airport? AAR Clarifies Export Completion Timing.

Does GST Zero-Rating Apply to Duty-Free Sales at IGI Airport? AAR Clarifies Export Completion Timing.
Case-Laws
GST
Zero rated supply or not – supply from the shop located in the Security Hold Area of the IGI International Airport – supply to an International outbound passengers holding international boarding pass – when goods are exported by Air, the export will be completed only when goods crosses airspace limits of its territory or territorial waters of India – AAR
TMI Updates

= = = = = = = =

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

= = = = = = = =

RCM ON FREIGHT (Tranpostation charges)

RCM ON FREIGHT (Tranpostation charges)
Query (Issue) Started By: – SURYAKANT MITHBAVKAR Dated:- 19-4-2018 Last Reply Date:- 20-4-2018 Goods and Services Tax – GST
Got 5 Replies
GST
Local transporter who is registered and unregistered under GST not charging any GST in their bill.
Is there any liability to us to pay GST under RCM. But RCM is exempted till June-18.
Reply By Rajagopalan Ranganathan:
The Reply:
Sir,
Under Section 9 (3) of CGST Act, 2017 " the Government may, on the recommendations of the Council, by notification, specify categories of supply of goods or services or both, the tax on which shall be paid on reverse charge basis by the recipient of such goods or services or both and all the provisions of this A

= = = = = = = =

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

= = = = = = = =

n charges. etc.
Section 9(4) – which requires payment on RCM on purchases from unregistered suppliers
Section 9(4) has been deferred till 30.06.2018. But u need to pay GST on transportation charges under section 9(3).
Regards
CA Susheel Gupta
9811004443, 8510081001
Reply By KASTURI SETHI:
The Reply:
I support the views of both experts.
Reply By Ganeshan Kalyani:
The Reply:
Yes reverse charge on GTA, legal service is still there. But reverse payable under reverse on account of purchase from an unregistered dealer is exempted till 30.06.2018.
Reply By Ganeshan Kalyani:
The Reply:
As per latest update, reverse charge in case of purchase from an unregistered dealer is discussed to bring in to force is month of may 2018.
Discussio

= = = = = = = =

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

= = = = = = = =

FREIGHT ON EXPORT

FREIGHT ON EXPORT
Query (Issue) Started By: – SURYAKANT MITHBAVKAR Dated:- 19-4-2018 Last Reply Date:- 19-4-2018 Goods and Services Tax – GST
Got 1 Reply
GST
Our clearing agent charging their charges including freight to us. On freight amount they will not charge GST.
Is it any exemption for freight paid on Export Consignment?
Reply By Susheel Gupta:
The Reply:
Vide notification no. . 2/2018- Central Tax (Rate) , freight on export of goods has been exempted up to 30.09.2018
Rega

= = = = = = = =

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

= = = = = = = =

Legal Fees under Reverse Charge

Legal Fees under Reverse Charge
Query (Issue) Started By: – Basha AbdulRazack Dated:- 19-4-2018 Last Reply Date:- 20-4-2018 Goods and Services Tax – GST
Got 6 Replies
GST
Sir,
We are paying monthly Retainer Fees to Advocate but they are not charging GST, so Reverse Charge mechanism is applicable or not, please clarify.
Thanks & Regards
Razack.
Reply By KASTURI SETHI:
The Reply:
Legal services are under RCM. Recently Board has clarified.
Reply By Basha AbdulRazack:
The Reply:
Sir,
Thank you for your clarification but Reverse Chage mechanisim rule for Epxenses cancelled till 30.06.2018, so advocate fees come under this category or not? please confirm once again to proceed further.
Thanks & Regards
Razack
Reply By Rajag

= = = = = = = =

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

= = = = = = = =

9 (4) of CGST Act, 2017 is exempted up to 30.6.2018 vide Notification No.8/2017-Central Tax (Rate) dated 28.6.2017 as amended.
Reply By Susheel Gupta:
The Reply:
There are two sections of RCM
Section 9(3) – which requires payment on RCM on advocate fees, transportation charges. etc.
Section 9(4) – which requires payment on RCM on purchases from unregistered suppliers
Section 9(4) has been deferred till 30.06.2018. But u need to pay GST on advocate fees under section 9(3) which has not been deferred and still applicable.
Regards
CA Susheel Gupta
9811004443, 8510081001
Reply By Basha AbdulRazack:
The Reply:
Dear Sirs,
Thank you very much for giving detailed explanations to Mr. Rajagopalan Ranganathan Sir & Mr. Susheel Gupta Sir.

= = = = = = = =

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

= = = = = = = =

E way bill for intra state Jobwork

E way bill for intra state Jobwork
Query (Issue) Started By: – Ravikumar Doddi Dated:- 19-4-2018 Last Reply Date:- 9-6-2018 Goods and Services Tax – GST
Got 12 Replies
GST
Dear sir,
Material sending for jobwork in Delivery challan for Intra state movement of goods way bills is required or not for the value below ₹ 50,000/- Please clarify
Reply By KASTURI SETHI:
The Reply:
Not required.
Reply By subramanian vijayakumar:
The Reply:
No e_eay bill is required
Delivery challan is enough
Reply By Ganeshan Kalyani:
The Reply:
Not required, but you can generate .
Reply By Ravikumar muthusamy:
The Reply:
irrespective of purpose of supply .i.e for job work or sale or otherwise if value of taxable goods is less than 50k e

= = = = = = = =

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

= = = = = = = =

em barring the value of goods. If respective state has made eway bill mandatory for job work in their eway bill Notification, the same has to be generated irrespective of value, as people normally manipulate the value of job work.
querist has to go through his state eway bill Notification.
Reply By Praveen Nair:
The Reply:
I agree with Sanjay. Gujarat State has this provision of making E-Way for Jobworker's irrespective of the amount.
Reply By Himan Sharma:
The Reply:
Hello sir as intra state way bill has been mandatory, can u share any document regarding job work scenario.
I m from haryana n looking the answer for intra state way bill rules for our state.
Reply By Himan Sharma:
The Reply:
Mr Praveen as you mentioned the gujrat

= = = = = = = =

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

= = = = = = = =

E-Way bill

E-Way bill
Query (Issue) Started By: – SURYAKANT MITHBAVKAR Dated:- 19-4-2018 Last Reply Date:- 5-5-2018 Goods and Services Tax – GST
Got 6 Replies
GST
E-way bill operations are compulsory for inter-state movement of goods with effect from 01.04.18.
In case of Trading Export, we are given instruction to our supplier to deliver goods directly to port for further process of export.
We are sending our document like tax invoice , Packing List to clearing agent.
In above case generation of Eway bill is compulsary. If yes who is liable to generate Eway bill.
Reply By KASTURI SETHI:
The Reply:
Yes. It is compulsory. Any registered person who causes the movement of goods. is required to generate E-way bill. However, first respon

= = = = = = = =

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

= = = = = = = =

ENTRY OF CREDIT NOTEHOW TO SHOW AGAINST B2CS IN GSTR1 MARCH AGAINST BILL OF JAN

ENTRY OF CREDIT NOTEHOW TO SHOW AGAINST B2CS IN GSTR1 MARCH AGAINST BILL OF JAN
Query (Issue) Started By: – nandankumar roy Dated:- 19-4-2018 Last Reply Date:- 20-4-2018 Goods and Services Tax – GST
Got 1 Reply
GST
SIR, AS PER CREDIT NOTE POSTING REGARDING B2CS SUPPLIER PL CONFIRM WHETHER I AM WRONG OR RIGHT IN CASE OF RETURN PERIOD MARCH GSTR1 , WE HAVE TO DEDUCT TAXABLE AMT FROM PARTICULAR STATE FROM MARCH RETURN EVEN IF THE CREDIT NOTE AGAINST JANUARY INVOICES . PL HELP REGARDING

= = = = = = = =

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

= = = = = = = =

Analysis of Advance Ruling on Recovery of Food Expenses from Employees for the canteen provided

Analysis of Advance Ruling on Recovery of Food Expenses from Employees for the canteen provided
By: – Sanjeev Singhal
Goods and Services Tax – GST
Dated:- 19-4-2018

Fact of the Advance Ruling
Case :
Advance Ruling U/S 98 of the GST Act- whether recovery of food expenses from employees for the canteen provided by company comes under the definition of outward supplies are taxable under GST Act – Orders issued. Read:-Application dated 30.12.2017 from Caltech Polymers Pvt. Ltd. ORDER No.CT/531118-C3 DATED 26/03/2018 = 2018 (4) TMI 582 – AUTHORITY FOR ADVANCE RULING – KERALA
Fact :
1. M/s. Caltech Polymers Pvt. Ltd., Malappuram in Kerala (hereinafter called the applicant or the Company) has preferred an application for Advance Ruling on whether recovery of food expenses from employees for the canteen service provided by the applicant company comes under the definition of outward supplies and are taxable under Goods & Service Tax Act.
2. They are incurring the canteen

= = = = = = = =

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

= = = = = = = =

application dated 30-12-2017, raised the following questions to be determined by the Authority for Advance Ruling. "Whether reimbursement of food expenses from employees for the canteen provided by company comes under the definition of outward supplies under GST Act.
7. The term "business" is defined in Section 2(17) of the GST Act, which reads like this:- "business" includes:- (a) any trade, commerce, manufacture, profession, vocation, adventure, wager or any other similar activity, whether or not it is for a pecuniary benefit: (b) any activity or transaction in connection with or incidents or ancillary to sub-clause (a); from the plane reading of the definition of "business", it can be safely concluded that the supply of food by the applicant to its employees would definitely come under clause (b) of Section 2(17) as a transaction incidental or ancillary to the main business.
8. Schedule II to the CGST Act, 2017 describes the activities to be tre

= = = = = = = =

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

= = = = = = = =

y clarified that recovery of food expenses from the employees for the canteen services provided by company would come under the definition of 'outward supply' as defined in Section 2(83) of the Act, 2017, and therefore, taxable as a supply of services under GST.
Though the above ruling will be applicable on the Company who has applied for this advance ruling but become benchmark for the others as well.
From the above cited ruling, it is clear that if the food expenses would not have been charged from the employees, it is not subject to GST. Because charging from employees is main factor. But, as per clause -2 of the Schedule-1 of the CGST Act,2017 , if the goods or services are supplied without consideration to the related person or distinct person [Here, in the above case, the employer and employee is related person as defined in Explanation to Section-15 of the CGST Act,2017], even though the same shall be treated as supply. Therefore, this transaction is otherwise taxable

= = = = = = = =

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

= = = = = = = =

the supplier and recipient is not related person and price charged shall be the sole consideration. Here, in the above case, the employer and employee is related person as defined in Explanation to Section-15 of the CGST Act,2017 . Therefore, Section 15 of CGST will be apply and accordingly cost of the food shall be determined as per Rule 28 and 30 of the CGST Rules, 2017.
If the food has been outsourced and supplied to employee the cost charged to employee shall be as per rule 28 and 30 of the CGST rules as the employer and employee is related person.
ITC on the above service shall be disallowed u/s 17[5] explicitly in both the cases of own canteen or outsourced. But as in the above case providing food was statutory requirement as per Factory Act ,1948, ITC on the inward services shall be allowed.
Whether GST will be charged from the employees, the answer is 'yes' as provided in Section-15[2][a] of the CGST Act,2017.
Whether the Company need to raise invoice on employee and

= = = = = = = =

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

= = = = = = = =

A Comprehensive understanding of Job Work provisions Under GST

A Comprehensive understanding of Job Work provisions Under GST
By: – CASanjay Kumawat
Goods and Services Tax – GST
Dated:- 19-4-2018

Introduction
Job work sector constitutes a significant industry in Indian economy. It includes outsourced activities that may or may not culminate into manufacture. The term Job-work itself explains the meaning. It is processing of goods supplied by the principal.
Job work means processing or working on raw materials or semi-finished goods supplied by the principal manufacturer to the job worker. This is to complete a part or whole of the process of the finishing of an article or any other essential operation. For example, big shoe manufacturers (principals) send out the half-made shoes (upper part) to smaller manufacturers (job workers) to fit the soles in the shoes. The job workers send back the shoes to the principal manufacturer after completion of the assigned work.
The concept of job work already exists in Central Excise, wherein

= = = = = = = =

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

= = = = = = = =

job would be termed as 'job worker'.
The words used are 'any treatment or process', the scope of the term job work is very wide. While the person sending the goods out for job work (i.e. Principal), has to be a registered person, the job worker may or may not be a registered person though operationally it would be advisable to deal with a registered person only as job worker.
This definition is much wider than the one given in Notification No. 214/86 – CE dated 23rd March, 1986. In the said notification, job work has been defined in such a manner so as to ensure that the activity of job work must amount to manufacture. Thus, the definition of job work itself reflects the change in basic scheme of taxation relating to job work in the GST regime.
The ownership of the goods does not transfer to the job worker but it rests with the principal. The job worker is required to carry out the process specified by the principal, on the goods.
Key elements of job work under GST are as below:

= = = = = = = =

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

= = = = = = = =

erson on goods belonging to another registered person. Thus, the job worker is expected to work on the goods sent by the principal and whether the activity is covered within the scope of job work or not would have to be determined on the basis of facts and circumstances of each case. Further, the job worker, in addition to the goods received from the principal, can use his own goods for providing the services of job work.
Supply
Goods sent by a taxable person to a job worker will be treated as supply as supply includes all forms of supply such as sale, transfer, etc. However, the registered taxable person (the principal), under intimation and subject to such conditions as may be prescribed send any inputs and/or capital goods, without payment of tax, to a job worker for job work and from there subsequently to another job worker(s).
It may be noted that, however, if the time frame of one year / three years for bringing back or further supplying the inputs / capital goods is not adhe

= = = = = = = =

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

= = = = = = = =

ligated to follow the said provisions. It is his choice whether or not to avail or not to avail of the benefit of these special provisions.
For Job Worker
The job worker is required to obtain registration only if his aggregate turnover, to be computed on all India basis, in a financial year exceeds the specified threshold limit (i.e. ₹ 20 lakhs or ₹ 10 lakhs in case of special category States except Jammu & Kashmir) in case both the principal and the job worker are located in the same State. Where the principal and the job worker are located in different States, the requirement for registration flows from clause (i) of section 24 of the CGST Act which provides for compulsory registration of suppliers making any inter-State supply of services. However, exemption from registration has been granted in case the aggregate turnover of the inter-State supply of taxable services does not exceed ₹ 20 lakhs or ₹ 10 lakhs in case of special category States except Jammu &

= = = = = = = =

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

= = = = = = = =

including export) the same directly from the place of business/premises of the job worker within one year in case of inputs or within three years in case of capital goods (except moulds and dies, jigs and fixtures or tools).
Certain facilities with certain conditions are offered in relation to job work, some of which are as under:
* A registered person (Principal) can send inputs/capital goods under intimation and subject to certain conditions without payment of tax to a job worker and from there to another job worker and after completion of job work bring back such goods without payment of tax. The principal is not required to reverse the ITC availed on inputs or capital goods dispatched to job worker.
As per explanation to Section 143 of the CGST Act, for the purpose of job work, input includes intermediate goods arising from any treatment or process carried out on the inputs by the principal or the job worker. Thus, the inputs after they have undergone some process at the end o

= = = = = = = =

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

= = = = = = = =

oods, after completing the job work or otherwise, from place of business of the job worker on payment of tax or export them under bond from such place which again has to be done within the aforesaid specified period of one year or three years respectively.
Failure to comply will result into liability on the Principal to treat the inputs (or capital goods) to the extent not brought back or supplied from job worker's business premises, as supplied to the job worker on the day they were sent out to job worker and accordingly pay tax and interest.
Before supply of goods to job worker, principal would be required to intimate the Jurisdictional Officer containing the details of description of inputs intended to be sent by the principal and the nature of processing to be carried out by the job worker. The said intimation shall also contain the details of another job worker, if any.
The inputs, semi-finished goods or capital goods are required to be sent by the principal to the job worke

= = = = = = = =

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

= = = = = = = =

g tax thereon.
* The job worker is often allowed to retain the scrap and its value is adjusted in arriving at labour charges. In that case, considering the provisions of Valuation Rules, scrap value will have to be added to labour charges for payment of GST thereon by the job worker.
Compliance required for sending inputs/capital goods to a job worker
* Section 143 of the CGST Act provides that the principal may send and/or bring back inputs/capital goods for job work without payment of tax, under intimation to the proper officer and subject to the prescribed conditions.
Rule 45 of the CGST Rules provides that the inputs, semi-finished goods or capital goods being sent for job work (including that being sent from one job worker to another job worker for further job work or those being sent directly to a job worker) shall be sent under the cover of a challan issued by the principal, containing the details specified in Rule 55 of the CGST Rules. This rule has been amended vide Not

= = = = = = = =

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

= = = = = = = =

ds or capital goods shall be sent to the job worker under the cover of a challan issued by the principal, including in cases where such goods are sent directly to a job worker. Further, Rule 55 of the CGST Rules provides that the consignor may issue a delivery challan containing the prescribed particulars in case of transportation of goods for job work. It may be noted that Rule 45 provides for the issuance of a challan by the principal whereas Rule 55 provides that the consignor may issue the delivery challan. It is also important to note that as per the provisions contained in rule 138 of the CGST Rules, an e-way bill is required to be generated by every registered person who causes movement of goods of consignment value exceeding fifty thousand rupees even in cases where such movement is for reasons other than for supply (e.g. in case of movement for job work). The third proviso to Rule 138(1) of the CGST Rules provides that the e-way bill shall be generated either by the principal

= = = = = = = =

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

= = = = = = = =

s of Rules 45 and 55 of the CGST Rules, for sending the goods to a job worker. Two copies of the challan may be sent to the job worker along with the goods. The job worker should send one copy of the said challan along with the goods, while returning them to the principal. The FORM GST ITC-04 will serve as the intimation as envisaged under section 143 of the CGST Act, 2017.
Where goods are sent from one job worker to another job worker:
In such cases, the goods may move under the cover of a challan issued either by the principal or the job worker. In the alternative, the challan issued by the principal may be endorsed by the job worker sending the goods to another job worker, indicating therein the quantity and description of goods being sent. The same process may be repeated for subsequent movement of the goods to other job workers.
Where the goods are returned to the principal by the job worker:
The job worker should send one copy of the challan received by him from the princi

= = = = = = = =

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

= = = = = = = =

the same to the job worker directly.
Where goods are returned in piecemeal by the job worker:
In case the goods after carrying out the job work, are sent in piecemeal quantities by a job worker to another job worker or to the principal, the challan issued originally by the principal cannot be endorsed and a fresh challan is required to be issued by the job worker.
Submission of intimation:
Rule 45(3) of the CGST Rules provides that the principal is required to furnish the details of challans in respect of goods sent to a job worker or received from a job worker or sent from one job worker to another job worker during a quarter in FORM GST ITC-04 by the 25th day of the month succeeding the quarter or within such period as may be extended by the Commissioner. It is the responsibility of the principal to include the details of all the challans relating to goods sent by him to one or more job worker or from one job worker to another and its return therefrom. The FORM GST ITC-04 will

= = = = = = = =

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

= = = = = = = =

rt of the valuation for that particular supply, provided it has not been included in the price for such supply. Accordingly, the value of such moulds and dies, jigs and fixtures or tools may not be included in the value of job work services provided its value has been factored in the price for the supply of such services by the job worker.
It may be noted that if the job worker is not registered, GST would be payable by the principal on reverse charge basis in terms of the provisions contained in section 9(4) of the CGST Act. However, the said provision has been kept in abeyance for the time being.
Supply of goods by the principal from the place of business/premises of job worker:
Section 143 of the CGST Act provides that the principal may supply, from the place of business /premises of a job worker, inputs after completion of job work or otherwise or capital goods (other than moulds and dies, jigs and fixtures or tools) within one year or three years respectively of their being s

= = = = = = = =

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

= = = = = = = =

er (principal) located in State A to the recipient located in State C. The said transaction will be an inter-State supply. In case the recipient is also located in State A, it will be an intra-State supply.
Supply of waste and scrap generated during the job work:
Sub – section (5) of Section 143 of the CGST Act provides that the waste and scrap generated during the job work may be supplied by the registered job worker directly from his place of business or by the principal in case the job worker is not registered. The principles enunciated in para (b) above would apply mutatis mutandis in this case.
Violation of conditions laid down in section 143:
As per the provisions contained in section 143 of the CGST Act, if the inputs or capital goods (other than moulds and dies, jigs and fixtures or tools) are neither received back by the principal nor supplied from the job worker's place of business within the specified time period, the inputs or capital goods (other than moulds and die

= = = = = = = =

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

= = = = = = = =

ct read with the rules made thereunder.
It may be noted that if the job worker is not registered, GST would be payable by the principal on reverse charge basis in terms of the provisions contained in section 9(4) of the CGST Act. However, the said provision has been kept in abeyance for the time being.
Further, there is no requirement of either returning back or supplying the goods from the job worker's place of business/premises as far as moulds and dies, jigs and fixtures, or tools are concerned.
Availability of input tax credit to the principal and job worker
In view of the provisions contained in clause (b) of sub-section (2) of section 16 of the CGST Act, the input tax credit would be available to the principal, irrespective of the fact whether the inputs or capital goods are received by the principal and then sent to the job worker for processing, etc. or whether they are directly received at the job worker's place of business/premises, without being brought to the premises o

= = = = = = = =

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

= = = = = = = =

the definition of 'job work' presupposes that only activity will be covered under this definition whether the same amounts to manufacture or not. The material sent for job work therefore may be only for processing or complete manufacture. However as per the provisions of Section 143(1) the tax is not payable for goods sent for job work. The service provided by the job worker requires payment of tax as applicable for the services rendered. Specific confirmation that the activity of the manufacture can also be covered under job work could help to avoid any ambiguity.
Conclusion
Key for effective compliance of Job Work provisions under GST lie in:
* proper intimation to the jurisdictional officer
* proper covering challan/ E-way Bill compliances
* timely return/ supply of processed goods from the place of business of the Job Worker.
= = = = = = = =
Reply By Nikhil Oltikar as =
Dear Sir,
Ref:
"As per Section 143 of the CGST Act, there is no requirement that scrap generat

= = = = = = = =

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

= = = = = = = =

K. MURUGESAN, S. SRIDHARAN, M/s. SRIRAJ STEELS LTD. Versus COMMISSIONER OF CGST & CENTRAL EXCISE, PUDUCHERRY

K. MURUGESAN, S. SRIDHARAN, M/s. SRIRAJ STEELS LTD. Versus COMMISSIONER OF CGST & CENTRAL EXCISE, PUDUCHERRY
Central Excise
2018 (7) TMI 840 – CESTAT CHENNAI – TMI
CESTAT CHENNAI – AT
Dated:- 19-4-2018
E/42188 to 42190/2017 – 41242-41244/2018
Central Excise
Smt. Archana Wadhwa, Judicial Member
For the Appellant: Shri M. Karthikeyan,
For the Respondent: Shri K.P. Muralidharan, AC (AR)
ORDER
All the three appeals are being disposed of by a common order as they arise out of the same impugned order.
2. As per facts on record, M/s. Sriraj Steels P. Ltd., are engaged in the manufacture of MS Ingots. Based upon the report from the Electricity Department, their power connection was cut on 30.08.2006 and the factory was closed. The Central Excise officers visited the factor on 04.09.2006 and conducted various checks and verifications, in the presence of the security guards, as the factory was not working and no employee of the appellant was available for stock taking

= = = = = = = =

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

= = = = = = = =

ication took a categorical stand that the Revenue's case is self-contradictory in respect of clearances – on the one hand, they allege shortage of scraps and on the other hand, they allege issuance of invoices without removal of scrap, in which case, the scrap should be in excess, in their factory. They also sought a reply from the Revenue, as regards the actual weighments. The Superintendent (Adjudication) vide his letter dated 07.06.2008 addressed to the appellant clarified that no weighments of material was made and the whole of the materials were estimated approximately. On the basis of the said communication, the appellant assailed the actual fact of weightments and replied that there were no shortages. In any case, they contested the demand of clandestine removal on the ground of shortages, by submitting that mere shortages cannot lead to the conclusion of clandestine removal, in the absence of any other evidence to that effect.
As regards the proposed penalties under Rule 2

= = = = = = = =

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

= = = = = = = =

ent of raw materials, clandestine manufacture of the goods, their transportation or identification of the buyers etc., so as to lead to the inevitable conclusion of clandestine removal, It is well settled law that the allegations of clandestine removal, cannot be upheld merely on the basis of shortages in stock. Reference can be made to the Hon'ble Allahabad High Court decision in the case of Commissioner Vs M/s. Meenakshi Steels as also to Tribunal's decision in the case of (i) M/s. Amba Steels Vs Commissioner of Central Excise, Meerut-l reported in 2016 (335) E.L.T.97 (Tri. -All.); (ii) M/s. Jyoti Ingots P. Ltd. Vs Commissioner of Central Excise, Meerut-I reported in 2015 (329) E.L.T.511 (Tri.-Del.); and (iii) M/s. Chandpur Enterprises Ltd. Vs Commissioner of Central Excise & Service Tax, Meerut-I reported in 2014 (310) E.L.T.904 (Tri. -Del.). As such, I find no reasons to uphold the said part of the impugned order.
6. As regards the penalty on the individuals, the appellant

= = = = = = = =

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

= = = = = = = =

Waiver Of Late Fee Payable By Any Registered Person For Failure To Furnish Return In Form Gstr-5a By Due Date.

Waiver Of Late Fee Payable By Any Registered Person For Failure To Furnish Return In Form Gstr-5a By Due Date.
NO.KA.NI.-2-666/XI-9(42)/17 Dated:- 19-4-2018 Uttar Pradesh SGST
GST – States
Uttar Pradesh SGST
Uttar Pradesh SGST
Uttar Pradesh Shasan
Sansthagat Vitta, Kar Evam Nibandhan Anubhag -2
NOTIFICATION
NO.KA.NI.-2-666/XI-9(42)/17-U.P. ACT-1-2017-ORDER (124)-2018,
Lucknow : Dated : April 19, 2018
In exercise of the powers conferred by section 128 of the Uttar Pradesh Good

= = = = = = = =

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

= = = = = = = =

Commissioner of Central Tax, Hyderabad- GST Versus ICRISAT

Commissioner of Central Tax, Hyderabad- GST Versus ICRISAT
Central Excise
2018 (5) TMI 864 – CESTAT HYDERABAD – TMI
CESTAT HYDERABAD – AT
Dated:- 19-4-2018
Appeal No. E/31052-31054/2017 – A/30485-30487/2018
Central Excise
Mr. M. V. Ravindran., Member (Judicial)
Shri Arun Kumar, Deputy Commissioner (AR) for the Appellant.
Shri S. Thirumalai, Advocate for the Respondent.
[Order per: M. V. Ravindran.]
These three appeals are directed against Orders-in-
Appeal No. HYD-EXCUS-001-APP-040, 041 & 042-17-18-ST dated
19.06.2017.
2. Heard both sides and perused the records.
3. On perusal of records, it transpires that the issue is regarding refund of Central Excise duty paid on various petroleum products which are consumed by the respondent whether it can be refunded or otherwise.
4. Respondent is an organization recognized as an international organization by virtue of Section 3 of the United Nations Act and also extended benefit of Notification No. 108/95-CE dat

= = = = = = = =

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

= = = = = = = =

he submissions made in the departmental application and those made by the respondent in writing as well as those made during the personal hearing held in the matter. The issue for decision is whether the respondent being an international organization is entitled to exemption from payment of Central Excise duty under Notification No. 108/95-C.E on HSD obtained and to the refund of duty of excise paid on such HSD used by them since they had paid duty on them at the time of clearance from IOCL. As regards facts it is not is dispute that ICRISAT is an international organization notified by the Government of India in terms of Section 3 of the United Nations (Privileges and Immunities) Act, 1947 and that they are entitled to exemption in terms of Notification No. 108/95-C.E. The exemption granted under the said Notification No. 108/95-C.E is with respect to all goods falling under the schedule of Central Excise Tariff Act when supplied to the United Nations or to an international organizatio

= = = = = = = =

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

= = = = = = = =

arded as raw material/consumable for the business carried on by the respondent in the field of research and related activities mandated under its incorporation and not solely for use as fuel in the motor vehicles maintained by them. Keeping in view the intention of the Notification which is to extend the benefit of exemption to goods supplied to international organizations, I am of the considered view that the exemption provided has to be made effective by way of the refund mechanism applicable to such organization because of the administrative difficulty encountered in extending the exemption at the original stage at IOCL as has been recognised in the CBEC communication F.No. 261/27/2/2006-CX8 dated 14.08.2008. In this connection, it is observed that in terms of the CBEC circulars F.No. III/7/76- CX3 dt. 20.4.1976 and F. No. 111/5/79-CX3 dt. 19.10.1979 a restriction in terms of quantity and the amount of duty eligible to be refunded on petroleum products has been sought to be enforced

= = = = = = = =

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

= = = = = = = =

restrict the quantity of petroleum products to 350 litres per month would be applicable to the respondent in view of the fact that the said circular as presented in the Public Notice issued by Delhi Central Excise Collectorate available on record refers in its title to the UN and its agencies. The respondent being a notified agency under Section 3 of the United Nations (Privileges and Immunities) Act, 1947 is eligible to the exemption under Notification No. 108/95-C.E but restricted by the instructions issue by CBEC on petrol/HSD etc. Such restriction of quantity of 350 per month per vehicle would, however, apply only to the official vehicles of the respondent as intended in the said circular but not other vehicles and uses, in view of my decision above on fuel consumed by respondent in research work etc. At the same time, it is observed form my reading of the CBEC circular F.No. 111/5/79-CX3 dt. 19.10.1979 relied upon in the departmental application that the restriction of the amount

= = = = = = = =

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

= = = = = = = =

ies) Act, 1947 they are entitled to exemption from payment of excise duties on various items for official use in terms of the international conventions.
7. In view of the above discussion, I am of the considered view that the respondent is entitled to exemption under Notification No. 108/95-C.E and consequently for refund of Central Excise duty paid on the fuel used for undertaking research work and other allied activities. However, as regards the quantity of fuel consumed by the respondent with reference to running and maintenance of official vehicles used by them they shall be entitled to refund of the Central Excise duty paid only on 350 litres per month per such vehicle.
It can be seen from the above reproduced findings of the First Appellate Authority, that he has placed reliance on Circular F. No.111/5/79-CX3 dated 19.10.1979 for granting relief to the respondent before him. I find that, though First Appellate Authority did not refer to Board Circular dated 14.08.2008 but to a

= = = = = = = =

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

= = = = = = = =

ies cannot supply the goods from refinery to ICRISAT as these are transferred through a pipeline and not in a tanker. Therefore benefit of Notification cannot be extended while clearing goods from factory. The provisions of refund for goods supplied to diplomatic mission has also been referred. Accordingly, a proposal has been received by the Board from Chief Commissioner of Central Excise, Visakhapatnam for providing a refund mechanism in this case.
3. The matter has been examined. As per Section 11B (1) a refund claim is to be submitted in the prescribed format and shall be accompanied by such documentary or other evidence (including the documents referred to in section 12A) as the applicant may finish to establish that the amount of duty of excise in relation to which such refund is claimed was collected from, or paid by him and the incidence of such duty had not been passed on by him to any other person. It the duty is determined to be refundable pursuant to a claim made by a Buy

= = = = = = = =

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

= = = = = = = =

ISAT from the duty paid stock.
It can be seen from the above reproduced Board Circular, ICRISAT has to satisfy some conditions for refund Central Excise duty paid on petroleum products procured by them. It is not disputed in these appeals ICRISAT had complied with the conditions in the refund claims filed for as per Board Circular dated 14.08.2008, I find both the lower authorities were correct coming to a conclusion with the respondent herein is eligible for the refund of an amount paid towards Central Excise duty on the fuel consumed by them during the relevant period in question. In my view concurrent findings of facts need to be upheld and I do so.
5. In view of the foregoing, the appeals filed by the Revenue are devoid of merits and are rejected, the impugned order is correct and legal and does not require any interference and appeals stands rejected. Cross objections filed by the respondent being support of the Order-in-Appeal is also disposed of.
(Order dictated and pronounce

= = = = = = = =

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

= = = = = = = =

The Tripura State Goods and Services Tax (Fourth Amendment) Rules, 2018.

The Tripura State Goods and Services Tax (Fourth Amendment) Rules, 2018.
F.1-11(91)-TAX/GST/2018(Part) Dated:- 19-4-2018 Tripura SGST
GST – States
Tripura SGST
Tripura SGST
GOVERNMENT OF TRIPURA
FINANCE DEPARTMENT
(TAXES & EXCISE)
Dated, Agartala, the 19th April, 2018
NOTIFICATION
NO. F.1-11(91)-TAX/GST/2018(Part)
Dated, Agartala, the 19th April, 2018
In exercise of the powers conferred by section 164 of the Tripura State Goods and Services Tax Act, 2017 (Tripura Act No. 9 of 2017), the State Government hereby makes the following rules further to amend the Tripura State Goods and Services Tax Rules, 2017, namely:-
(1) These rules may be called the Tripura State Goods and Services Tax (Fourth Amendment) Rules, 2018.
(2) Save as otherwise provided, they shall come into force on the date of their publication in the Official Gazette.
2. In the Tripura State Goods and Services Tax Rules, 2017, –
(i) in rule 89, for sub-rule (5), the following shall be substituted,

= = = = = = = =

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

= = = = = = = =

he Fund:
Provided that an amount equivalent to fifty per cent. of the amount of integrated tax determined under sub-section (5) of section 54 of the Central Goods and Services Tax Act, 2017, read with section 20 of the Integrated Goods and Services Tax Act, 2017, shall be deposited in the Fund.
(2) Where any amount, having been credited to the Fund, is ordered or directed to be paid to any claimant by the proper officer, appellate authority or court, the same shall be paid from the Fund.
(3) Accounts of the Fund maintained by the Central Government shall be subject to audit by the Comptroller and Auditor General of India.
(4) The Government shall, by an order, constitute a Standing Committee (hereinafter referred to as the 'Committee') with a Chairman, a Vice-Chairman, a Member Secretary and such other members as it may deem fit and the Committee shall make recommendations for proper utilisation of the money credited to the Fund for welfare of the consumers.
(5) (a) The Committee

= = = = = = = =

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

= = = = = = = =

icer of the State Government, as the case may be, such books, accounts, documents, instruments, or commodities in custody and control of the applicant, as may be necessary for proper evaluation of the application;
(c) to require any applicant to allow entry and inspection of any premises, from which activities claimed to be for the welfare of consumers are stated to be carried on, to a duly authorised officer of-the State Government, as the case may be;
(d) to get the accounts of the applicants audited, for ensuring proper utilisation of the grant;
(e) to require any applicant, in case of any default, or suppression of material information on his part, to refund in lump-sum along with accrued interest, the sanctioned grant to the Committee, and to be subject to prosecution under the Act;
(f) to recover any sum due from any applicant in accordance with the provisions of the Act;
(g) to require any applicant, or class Of applicants to submit a periodical report, indicating prop

= = = = = = = =

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

= = = = = = = =

rants to any applicant;
(b) for investment of the money available in the Fund;
(c) for making available grants (on selective basis) for reimbursing legal expenses incurred by a complainant, or class of complainants in a consumer dispute, after its final adjudication;
(d) for making available grants for any other purpose recommended by the Central Consumer Protection Council (as may be considered appropriate by the Committee);
(e) for making available up to 50% of the funds credited to the Fund each year, for publicity/ consumer awareness on GST, provided the availability of funds for consumer welfare activities of the Department of Consumer Affairs is not less than twenty five crore rupees per annum.
Explanation.- For the purposes of this rule,
(a) 'applicant' means,
(i) the Central Government or State Government;
(ii) regulatory authorities or autonomous bodies constituted under an Act of Parliament or the Legislature of a State or Union Territory;
(iii) any agency or

= = = = = = = =

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

= = = = = = = =

redressal agency.
(b) 'application' means an application in the form as specified by the Standing Committee from time to time;
(c) 'Central Consumer Protection Council' means the Central Consumer Protection Council, established under sub-section (l) of section 4 of the Consumer Protection Act, 1986 (68 of 1986), for promotion and protection of rights of consumers;
(d) 'Committee' means the Committee constituted under sub-rule (4);
(e) 'consumer' has the same meaning as assigned to it in clause (d) of sub-section (1) of section 2 of the Consumer Protection Act, 1986 (68 of 1986), and includes consumer of goods on which central tax has been paid;
(f) 'Fund' means the Consumer Welfare Fund established by the State Government under section 57 of the Tripura State Goods and Services Tax Act, 2017 (Tripura Act No. 9 of 2017);
(g) 'proper officer' means the officer having the power under the Act to make an order that the whole or any part of the state tax is refundable;
(iii) in

= = = = = = = =

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

= = = = = = = =

ed or finished goods held in stock and capital goods /plant and machinery
Unit Quantity Code (UQC)
Qty
Value (As adjusted by debit/ credit note)
Input tax credit/Tax payable (whichever is higher) (Rs.)
No.
Date
Central tax
State/Union territory tax
Integrated tax
Cess
1
2
3
4
5
6
7
8
9
10
11
12
8 (a) Inputs held in stock (where invoice is available)
8 (b) Inputs contained in semi-finished or finished goods held in stock (where invoice is available)
8 (c) Capital goods/plant and machinery held in stock
8 (d) Inputs held in stock or inputs as contained in semi-finished /finished goods held in stock (where invoice is not available)
9. Amount of tax payable and paid (based on Table 8)
Sl.No.
Description
ITC reversible/Tax payable
Tax paid along with application for cancellation of registration (GST REG-16)
Balance tax payable (3-4)
Amount paid through debit to electronic cash ledger
Amount paid through debit to electronic credit ledger
Central Tax
State/

= = = = = = = =

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

= = = = = = = =

dent taxable person;
(iv) Persons required to deduct tax at source under section 51; and
(v) Persons required to collect tax at source under section 52.
2. Details of stock of inputs, inputs contained in semi-finished or finished goods and stock of capital goods/plant and machinery on which input tax credit has been availed.
3. Following points need to be taken care of while providing details of stock at Sl. No.8:
(i) where the tax invoices related to the inputs held in stock or inputs contained in semi-finished or finished goods held in stock are not available, the registered person shall estimate the amount under sub-rule (3) of rule 44 based on prevailing market price of the goods;
(ii) in case of capital goods/ plant and machinery, the value should be the invoice value reduced by 1/60th per month or part thereof from the date of invoice/purchase taking useful life as five years.
4. The details furnished in accordance with sub-rule (3) of rule 44 in the Table at Sl. No. 8 (ag

= = = = = = = =

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

= = = = = = = =

Registration of TDS Authorities under GST Act

Registration of TDS Authorities under GST Act
6173/CT Dated:- 19-4-2018 Orissa SGST
GST – States
Commissionerate of CT & GST, Odisha (At Cuttack)
(Finance Department, Government of Odisha)
Letter No. 6173/CT
Dated 19-04-2018
To
GST Circle Heads (All Circles)
Sub: Registration of TDS Authorities under GST Act
Sir/Madam,
On the aforementioned subject, it is to inform you that TDS provisions of the GST Acts are likely to come into effect from 01.07.2018. As per the mandate in Section 51 of theOGST/CGST Act, the notified tax deducting authorities shall have to deduct SGST @ 1% and on every intra-state supply where the supply value exceeds ₹ 2.5 lakhs. In case of inter-state supply with supply value exceeding ₹ 2.

= = = = = = = =

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

= = = = = = = =

State Legislature or established by any Government with fifty-one percent or more participation by way of equity or control to carry out any function
(b) Society established by the Central Government or State Government or a Local Authority under the Societies Registration Act, 1860 (21 of 1860)
(c) Public Sector Undertakings
Accordingly, there is a need for identifying the prospective TDS Authorities located within your jurisdiction and ask them for registration. Even for registration, the prospective TDS Authorities may require some assistance by way of sensitization and hand-holding support.
A Nodal Officer should be nominated at the Circle level to handle all TDS related activities. The name, Mobile number and e-mail of the Nodal

= = = = = = = =

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

= = = = = = = =

s under your jurisdiction. Some of the prospective TDS authorities such as PSUs and Local Authorities, etc. might have already been registered under GST as a tax payer. In spite of that, they need to have separate registration as TDS authorities as per the requirements of Section 24(vi) of the OGST/CGST Acts.
Please take note that this instruction is only for ensuring registration of TDS authorities under Section-24(vi) of the CGST Act, 2017 and OGST Act, 2017. The TDS authorities are now not authorised to deduct tax at source immediately after registration. The date from which the TDS authorities shall be liable for deduction of tax at source shall be intimated later.
Yours faithfully
Saswat Mishra
Commissioner of CT & GST
Odisha (at

= = = = = = = =

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

= = = = = = = =

Remark Flour Mills Pvt. Ltd. Versus State of Gujarat

Remark Flour Mills Pvt. Ltd. Versus State of Gujarat
GST
2018 (4) TMI 1292 – GUJARAT HIGH COURT – 2018 (12) G. S. T. L. 481 (Guj.)
GUJARAT HIGH COURT – HC
Dated:- 19-4-2018
Special Civil Application No. 4835 of 2018
GST
MR. AKIL KURESHI AND MR. B. N. KARIA, JJ.
For The Petitioner : B.N. Soparkar, Sr. Adv. and Kuntal A. Parikh
For The Respondent : Chintan Dave, AGP
JUDGMENT
Akil Kureshi, J. –
Petitioners have challenged three separate actions of the departmental authorities, though all of them arise out of one integrated set of facts.
2. Briefly stated the facts are as under:
Petitioner No.1 is a company registered under the Companies Act. Petitioner No.2 is one of its share holders. Petitioner-company is engaged in supply of wheat flour, meslin flour, cereal flour etc. Such activity would invite SGST and CGST at prescribed rates. However, even this is a matter of dispute between the two sides.
3. Case of the petitioners is that they are supplying such goo

= = = = = = = =

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

= = = = = = = =

to Rs. 36,88,706/- not be recovered for the period between July 2017 and 20.02.2018; (ii) Simultaneously, on the same date, the department wrote to the petitioners' banks-Union Bank of India, Nizampura Branch, Baroda and IDBI Bank, Alkapuri Branch, Baroda provisionally attaching the petitioners' said bank accounts and instructed the banks not to allow the petitioners to operate the accounts without the prior permission of the department. The petitioners have challenged this provisional attachment orders of the departmental authorities.
6. On 19.03.2018, the adjudicating authority issued fresh notice under the purported exercise of powers under section 74(3) of the Central Goods and Services Tax Act calling upon the petitioners to show cause why a sum of Rs. 1,29,13,928/-towards CGST and SGST not be recovered from the period between July 2017 and 20.02.2018. This second show-cause notice, the petitioners have challenged on the ground of lack of jurisdiction.
7. We have heard

= = = = = = = =

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

= = = = = = = =

. However, in our experience such instances are few and far between.
8. In the present case, there does not appear to be any justification of the departmental authorities to collect and the petitioners to voluntarily give cheques for the said amount. We would therefore, direct the department to return such cheques.
9. We now take the petitioners' second challenge for consideration viz. to the second show-cause notice dated 19.03.2018. We may recall, the Adjudicating authority had already issued a show-cause notice on 27.02.2018 asking the petitioner to show cause why for the period between July 2017 and 20.02.2018 unpaid CGST and SGST of Rs. 30,88,706/-not be recovered. The second impugned show-cause notice also pertains to the same period and same demand of unpaid taxes only the figure now proposes is Rs. 1,29,13,928/-. The crucial question is, could the department have issued such a notice in purported exercise of powers under section 74(3) of the CGST Act.
10. Chapter XV of t

= = = = = = = =

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

= = = = = = = =

oper officer that any tax has not been paid or short paid or erroneously refunded or where input tax credit has been wrongly availed or utilised by reason of fraud, or any wilful-misstatement or suppression of facts to evade tax, he shall serve notice on the person chargeable with tax which has not been so paid or which has been so short paid or to whom the refund has erroneously been made, or who has wrongly availed or utilised input tax credit, requiring him to show cause as to why he should not pay the amount specified in the notice along with interest payable thereon under section 50 and a penalty equivalent to the tax specified in the notice.
(2) The proper officer shall issue the notice under sub section (1) at least six months prior to the time limit specified in sub-section (10) for issuance of order.
(3) Where a notice has been issued for any period under sub-section (1), the proper officer may serve a statement, containing the details of tax not paid or short paid or erro

= = = = = = = =

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

= = = = = = = =

would authorize the proper officer to serve a statement containing the details of tax unpaid, shortly paid or erroneously refunded for a period other than i.e. covered under sub-section (1) where a notice has been issued for any period. Under sub-section (1) of section 74. In clear terms thus, powers under sub-section (3) of section 74 would be available where notice has already been issued against the person chargeable with tax under sub section (1) and the statement referred to in sub-section (3) of section 74 would be containing the details of tax unpaid, short paid etc. for purpose other than those covered under sub section (1). In other words, powers under sub-section (3) of section 74 cannot be exercised for expanding or enlarging the liability arising out of show-cause notice under sub-section (1) from the same period. Essentially, sub-sections (1) and (3) of section 74 are envisaged to cover separate periods.
12. In that view of the matter, the respondents are wholly incorrec

= = = = = = = =

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

= = = = = = = =

alty liability on such tax amount. It prima facie appears that the department had issued second show-cause notice dated 19.03.2017 (which we propose to quash) including even the unbranded goods for recovery of GSTs. Having perused the relevant literature, we even otherwise find that GSTs on unbranded goods has been specifically exempted. As of now, thus, only notice for recovery of tax that survives is one seeking to recover GSTs of Rs. 30 lacs approximately with interest and penalty. At the same time, we must also realize that if the petitioners are not correct in contending that no service tax can be levied on branded goods because the brand belongs to the directors of the company, such liability may eventually arise with interest and matching penalty.
14. In this background, we may peruse the provisions of section 83 of the CGST Act which reads as under:
“83. Provisional Attachment to protect revenue in certain cases:
(1) Where during the pendency of any proceedings under secti

= = = = = = = =

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

= = = = = = = =

ent shall cease to have effect after the expiry of a period of one year from the date of which such order has been made. Similar provisions contained in the VAT Act concerning provisional attachment came up for consideration before Division Bench of this Court in case of Automark Industries (I) Ltd v. State of Gujarat reported in 2014 SCC Online Gujarat 14217. The Court made following observations:
“8. Section 45 of the VAT Act empowers the Commissioner during pendency of any proceedings of assessment or reassessment of turnover escaping assessment, to attach provisionally any property belonging to any dealer, if he is of the opinion that for the purpose of protecting the interest of Government revenue, it is necessary to do so. As per subsection (2) of Section 45, every such provisional attachment shall cease to have effect after the expiry of a period of one year from the date of the order made under subsection (1). Few things emerge from these statutory provisions. Firstly, the po

= = = = = = = =

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

= = = = = = = =

nding such consideration, it is necessary in the interest of Government revenue to pass order of provisional attachment. Such powers cannot be exercised in a routine manner in every case of reopening of assessment de hors the consideration noted above and in any case not merely because some assessment proceedings are pending. At that stage, it is merely a prima facie, exparte opinion of the assessing authority that a certain tax demand is likely to arise. This would be subject to biparte assessment proceedings. Even after the assessment is done, it is subject to further appeals, typically first before the Commissioner and thereafter before the VAT Tribunal and the High Court. At all such appellate stages there are powers for granting stay or waiving requirement of predeposit if statute so provides. Therefore, to contend that mere pendency of assessment or reassessment proceedings would clothe the authority to pass order of provisional attachment would be wrong. Pendency of such proceed

= = = = = = = =

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

= = = = = = = =

equire a detailed scrutiny and examination of materials not fully before us. In any case, we do not intend to bypass the assessment proceedings. Suffice it to say that at this stage to pass an order of provisional attachment would neither be permissible nor be proper. To reiterate, when the petitioner's classification on the basis of which the tax has so far been collected, cannot be stated to be without any basis nor can it be stated that the petitioner has no prima facie case, and when the assessment proceedings are yet to be completed, resorting to such extreme power of attachment without anything further to suggest that the liability if ultimately finalized, the petitioner will not pay, would simply not be permissible. It is not the case of the Department placed before us through any material on record that if ultimately any additional tax liability is finalized, the petitioner would not pay or be in a position to pay such taxes.”
16. In the present case, nothing is demonstrat

= = = = = = = =

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

= = = = = = = =

Six more states to roll out intra-State e-way bills from April 20

Six more states to roll out intra-State e-way bills from April 20
GST
Dated:- 18-4-2018

As per the decision of the GST Council, e-Way Bill system for all inter-State movement of goods has been rolled out from 01st April, 2018. As on 15th April, 2018, e-Way Bill system for intra-State movement of goods has been rolled out in the States of Andhra Pradesh, Gujarat, Karnataka, Kerala, Telangana and Uttar Pradesh. E-Way Bills are getting generated successfully and till 17th April, 2018

= = = = = = = =

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

= = = = = = = =

Final Return

Final Return
GSTR – 10
GST
1[FORM GSTR-10
(See rule 81)
Final Return
1.
GSTIN
2.
Legal name
3.
Trade Name, if any
4.
Address for future correspondence
5.
Effective date of cancellation of registration (Date of closure of business or the date from which registration is to be cancelled)
6.
Reference number of cancellation order
7.
Date of cancellation order
8. Details ofinputs held in stock, inputs contained in semi-finished or finished goods held in stock, and capital goods/plant and machinery on which input tax credit is required to be reversed and paid back to Government
Sr.
No.
GSTIN
Invoice/Bill of Entry
Description of inputs held in stock, inputs contained in semi-finished or fini

= = = = = = = =

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

= = = = = = = =

able 8)
Sr.
No
.
Description
ITC reversible/T ax payable
Tax paid along with application for cancellation of registration (GST REG-16)
Balance tax payable (3-4)
Amount paid through debit to electronic cash ledger
Amount paid through debit to electronic credit ledger
Central Tax
State/ Union territory Tax
Integrated Tax
Cess
1
2
3
4
5
6
7
8
9
10
1.
Central Tax
2.
State/Union territory Tax
3.
Integrated Tax
4.
Cess
10. Interest, late fee payable and paid
Description
Amount payable
Amount Paid
1
2
3
(I) Interest on account of
(a) Integrated Tax
(b) Central Tax
(c) State/Union territory Tax
(d) Cess
(II) Late fee
(a) Central Tax
(b) Sta

= = = = = = = =

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

= = = = = = = =

er section 52.
2. Details of stock of inputs, inputs contained in semi-finished or finished goods and stock of capital goods/plant and machinery on which input tax credit has been availed.
3. Following points need to be taken care of while providing details of stock at Sl. No.8:
(i) where the tax invoices related to the inputs held in stock or inputs contained in semi-finished or finished goods held in stock are not available, the registered person shall estimate the amount under sub-rule (3) of rule 44 based on prevailing market price of the goods;
(ii) in case of capital goods/ plant and machinery, the value should be the invoice value reduced by 1/60th per month or part thereof from the date of invoice/purchase taking useful life a

= = = = = = = =

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

= = = = = = = =

Third party payment

Third party payment
Query (Issue) Started By: – MEHUL SHAH Dated:- 18-4-2018 Last Reply Date:- 20-4-2018 Goods and Services Tax – GST
Got 1 Reply
GST
I would like to know about third party payment for the goods received.
Example: I have received the goods & i would like to instruct one of my client to pay to the said supplier on behalf of me to adjust the receivable from my client, is it possible in GST. I usually do this before GST.
Thank you
Mehul Shah
Reply By YAGAY AND SUN

= = = = = = = =

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

= = = = = = = =