Goods and Services Tax

Goods and Services Tax – Started By: – Nandini Annamaneni – Dated:- 10-2-2018 Last Replied Date:- 10-2-2018 – Dear Expert,Please suggest me the HSN code for Debris Movement from office premises. – Reply By KASTURI SETHI – The Reply = In pre-GST regime, it was covered under 'Dredging Service'. To ascertain the correct HSN pl. elaborate your query. – Reply By Nandini Annamaneni – The Reply = Hi Sir,Construction is going on in office premises. and now we need to move the pieces of rock ( I

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Goods and Services Tax – Started By: – Nandini Annamaneni – Dated:- 10-2-2018 Last Replied Date:- 5-5-2018 – Sending consumable material to one of the branch office outside India. Please advise me about GST applicability. – Reply By KASTURI SETHI – The Reply = Elaborate your query. It is not a complete query. – Reply By Nandini Annamaneni – The Reply = HI Sir,We having office branch outside India. we are sending Employee ID cards from India to Outside India branch location. should I pay IGST on this transaction. Can i get Customs Duty Exemption for this.ThanksNandini – Reply By Praveen Nair – The Reply = Dear NandiniYour question lacks clarity;- Whether the ID cards are exported to the branch office outside India and are you going to reali

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Goods and Services Tax – Started By: – Vivek anandhan – Dated:- 10-2-2018 Last Replied Date:- 14-2-2018 – Dear ExpertsWe are going to supply goods to a unit located at SEZ without payment of GST. Already we filed LUT for supply of goods without payment of GST. Now I want to know , what are the document need to file as proof of Export to the department under GST after supply of goods.Kindly clarifyRegardsVivekanandhanSunbeam Generators Pvt Ltd., – Reply By Alkesh Jani – The Reply = Sir, The registered person may supply goods to SEZ unit or Developer without payment of IGST, under Bond/LUT. The invoice shall carry an endorsement SUPPLY TO SEZ UNIT OR SEZ DEVELOPER FOR AUTHORISED OPERATIONS UNDER BOND OR LETTER OF UNDERTAKING WITHOUT PAYMENT

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Goods and Services Tax – Started By: – gvenugopal g – Dated:- 10-2-2018 Last Replied Date:- 21-2-2018 – Sirs,GST @1.80% on premium paid for life insurance policy of proprietor (Proprietary Concern) , can ITC be availed? – Reply By Alkesh Jani – The Reply = Sir, you cannot claim ITC in this regards, it is specifically mentioned at Section 17(5)(b)(iii) rent-a-cab, life insurance and health insurance, assuming that you do not fall under exception under (A) and/or(B) of the above mentioned Section

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Goods and Services Tax – Seizure order – Section 129(1) of the Uttar Pradesh Goods and Services Tax Act, 2017 – in the matter of seizure under the provisions of IGST Act the provisions of Central G.S.

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Goods and Services Tax – GST – By: – Mr. M. GOVINDARAJAN – Dated:- 10-2-2018 – Introduction The Governor of West Bengal is empowered to make regulations for Advance Rulings under section 165 of the West Bengal Goods and Services Tax Act, 2017 ( Act for short). By virtue of the above said power the Governor of West Bengal made The West Bengal Authority for Advance Ruling Regulations, 2018 ( Regulations for short) vide Notification No. 60-F.T, dated 10.01.2018. Effective date of regulations The Regulations shall be deemed to have come into effect from 01.07.2017. Definitions Section 95(a) of the Act defines the expression advance ruling as a decision provided by the Authority or the Appellate Authority to an applicant on matters or on questions in relation to the supply of goods or services or both being undertaken or proposed to be undertaken by the applicant. Section 95(b) of the Act defines the expression appellate authority as the Appellate Authority for Advance Ruling. Section 95(c

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respect to any goods or services or both amounts to or results in a supply of goods or services or both, within the meaning of that term. Procedure for filing application for Advance Ruling The following is the procedure for filing application for Advance Ruling- The application for Advance Ruling shall be filed in Form GST ARA – 01 through the Common Portal; The application may be filed manually in accordance with Rule 107A which provides that notwithstanding anything contained in this Chapter, in respect of any process or procedure prescribed herein, any reference to electronic filing of an application, intimation, reply, declaration, statement or electronic issuance of a notice, order or certificate on the common portal shall, in respect of that process or procedure, include manual filing of the said application, intimation, reply, declaration, statement or issuance of the said notice, order or certificate in such Forms as appended to these rules; The hard copy of the application sh

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nsmitted electronically through the common portal is received in the office of the Authority; A copy of each of the application, the statement of relevant facts havinga bearing on the question(s) shall also be sent as an attachment in .doc or .docx format to the designated email of the Authority. Procedure on receipt of application The following is the procedure to be adopted by the Authorized officer and the Authority is as follows- The Authorized Officer on receipt of the application shall initial the application and the stamp of the Authority thereon together with the date and time of the receipt of the application; The Authorized officer shall acknowledge the receipt; He shall enter the particulars of the application in the register of daily filing, maintained for that purpose; The application shall be scrutinized by the authorized officer; If any deficiency/defect is noticed in the application or annexure thereof the same shall be communicated to the applicant as far as possible w

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laced before the Authority for passing advance ruling; In a case if the Authority considers that prima facie the application is liable for rejection, a notice shall be sent to the applicant for showing cause as to why the application shall not be rejected on the grounds indicated in the said notice; No application shall be rejected without giving an opportunity of being heard in person or through an authorized representative; On the date fixed for hearing or such other date to which the case is adjourned, the Authority may pass an order either allowing or rejecting the application; A copy of the advance ruling passed by the Authority shall be sent to both the applicant and the concerned officer; Where an application is admitted, the Authority shall fixed a date for hearing; The hearing of the application shall normally be held between 11.00 a.m., and 5.00 p.m., on a common working day; In the event of non appearance of the applicant without any intimation, advance ruling shall be prono

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and the concerned officer within a period not exceeding 90 days from the date of filing the application; The language of the Authority shall be English; A copy of the order shall be served on the applicant and the concerned officer; If one of the members is on leave or cannot participate for the time being in the functioning of the authority for any compelling reasons, such period of absence shall be excluded while computing the limitation; A ruling pronounced shall bear signature of both the members unless they differ on any question; If they differ on any question, either separate drafts of the ruling be prepared by each of them clearly stating the grounds for difference of opinion or one of them may submit dissenting note to the draft ruling prepared by the other member. Reference to the Appellate Authority If the members of the Authority differ on any question on which the advance ruling is sought and they make a reference to the Appellate Authority for hearing and decision on such

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tions before the Authority for appropriate orders; place all the applications before the Authority for appropriate orders; forward a copy of the application along with its enclosures to the concerned or jurisdictional officer to transmit records of the case, if any, and to offer his comments on the application; issue notices or other processes, as may be ordered by the Authority; verify service of notices or other processes on the applicant and obtain necessary orders of the Authority in case of defective service; requisition records from the custody of any person upon orders of the Authority; return original records to the person from whose custody they were requisitioned; grant to the applicant certified copies of the orders/advance rulings; preserve records of every application and other materials for a period of 5 years from the date of disposal of the application and to weed out/destroy the same thereafter unless otherwise directed by the Authority; and discharge any other functio

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Goods and Services Tax – GST – By: – CASanjay Kumawat – Dated:- 10-2-2018 – Introduction The facility of warehousing of imported goods in Customs Bonded Warehouses, without payment of Customs duty otherwise leviable on import, is permitted under the Customs Act, 1962. Apart from specific provisions in the said Act (specially under Chapter IX), certain Regulations have been also framed and provisions of Warehoused Goods (Removal) Regulations, 1963 and Manufacture and Other Operations in Warehoused Regulations, 1966 could be referred to in this regard. Basically, goods after landing are permitted to be removed to a warehouse without payment of duty and duty is collected at the time of clearance from the warehouse. Accordingly, Chapter IX of the Customs Act provides for deposit of goods into a customs bonded warehouse licensed under section 57 or 58 or 58A without payment of duty and the procedures to be followed with respect to the warehoused goods. Bonding of Import Goods Where bonding

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eturns the bond executed as discharged in full. Clearance of imported goods The importer of any warehoused goods can clear the goods for home consumption by filing an ex-bond Bill of Entry and after payment of duties etc. in terms of section 68 of the Customs Act. Transfer of Bonded Goods or Transfer of ownership Section 59 (3) of the Customs Act, 1962 provides for the transfer of bonded goods to another person. The sale of the warehoused goods to holders of duty exemption or duty concession license for the goods is permitted under the law (Board s instructions issued from F. No. 473/43/94 dtd. 22.9.1994 refers in this regard). Accordingly, Sub-section (3) of section 59 provides that the importer is at liberty to transfer the ownership of such goods to another person while the goods remain deposited in the warehouse. Supply under GST The CBEC vide Circular No.46/2017-Customs, dated 24.11.2017 provides for the levy of IGST/GST. The transaction of sale / transfer etc. of the warehoused g

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ed warehouse, there is a possibility that certain cases may involve an additional taxable event, if a transfer of ownership of warehoused goods takes place between the importer and another person, before clearance of the goods, whether for home consumption or for export. In other words, when goods remain deposited in a customs bonded warehouse and are transferred by the importer to another person, the transaction will be subject to payment of IGST at the value determined as per section 20 of the IGST Act read with section 15 of the CGST Act, 2017 and the rules made thereunder and the tax liability shall be reckoned as per section 5 of the IGST Act, 2017. Section 5(1) of IGST ACT, 2017: Subject to the provisions of sub-section (2), there shall be levied a tax called the integrated goods and services tax on all inter-State supplies of goods or services or both, except on the supply of alcoholic liquor for human consumption, on the value determined under section 15 of the Central Goods an

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derstanding] . Rate of Duty/ Value for Assessment The value of imported goods, for purposes of charging customs duty, is determined as per section 14 of the Customs Act, 1962 at the time of import i.e. at the time of filing of the into-bond Bill of Entry. Any costs incurred after the import of goods, such as, port charges / port demurrage charges or costs for customs clearing or transporting the goods from the port to the customs bonded warehouse or costs of storage at the customs bonded warehouse, cannot be added to the value of the goods, for the purpose of levy of duties of customs at the stage of ex-bonding. Further, clause (b) of sub-section (1) of Section 15 of the Customs Act provides that the rate of duty or tariff valuation for an ex-bond Bill of Entry shall be the date on which it is filed. There is no provision to vary the assessable value of the goods at the ex-bond stage unless they are such goods on which tariff valuation applies. Therefore, duties of customs (BCD + IGST)

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s per Section 16(2)(b) of CGST Act. B files an Ex-bond Bill of entry on 25th of September 2017 and pays ₹ 23.20 (the deferred duty, in addition to duty of ₹ 36 paid earlier as indicated in Point-C). The credit of IGST paid can be availed. Total duty paid: 23.20+36= ₹ 59.2 In this case, when A sells the goods to B , A becomes the supplier of the goods as per IGST Act and is therefore liable to pay IGST under section 5 of IGST Act, as explained in Point -C. B in turn becomes the importer and is therefore liable to pay the duties deferred as in Point-B, on ex-bonding, as explained in Point-D above. Illustration 2: Goods imported, bonded and cleared for home consumption and subsequent sale thereof: Goods imported by A on 2nd July 2017. Importer wants to deposit the goods in a bonded warehouse to defer duty. Importer files an into bond bill of entry and the goods are deposited in a Bonded Warehouse. BCD and IGST [Section 3(7) of Customs Tariff Act 1975] are deferred. Illus

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2017 and charges GST. Value of goods= ₹ 300 GST (say 12 %) = ₹ 36. Credit of which can be availed. Total duty paid: 23.20+36= ₹ 59.2 Recovery of Duty on Bonded Goods Customs Officers may demand from the owner of bonded goods the full amount of duty chargeable on such goods, along with all penalties, rent, interest and other charges payable in the following cases: Where any warehoused goods are removed in contravention of the Customs Act, 1962; Where such goods have not been removed from a warehouse at the expiry of the period permitted under section 61; Where any warehoused goods have been taken under section 64 as samples without payment of duty; and Where any bonded goods have not been cleared for home consumption or exportation or are not duly accounted for to the satisfaction of the Customs. In case the owner fails to pay the amount as demanded above, Customs may detain and sell, after notice to the owner, such sufficient portion of the bonded goods as may be sele

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Goods and Services Tax – Started By: – JAJU BANSAL – Dated:- 9-2-2018 Last Replied Date:- 9-2-2018 – My client is a government contractor. He is involved in contracts with NBCC/NPCC.Advise me about the rate to be charged from such unit. – Reply By Alkesh Jani – The Reply = Sir, in terms of Section 2(84) (k) even government is a person, so any supply of goods or services will attract the rates declared by the Government. However, exemption and any other benefit will be subject to Notification is

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Goods and Services Tax – Started By: – Amit Gopal – Dated:- 9-2-2018 Last Replied Date:- 9-2-2018 – Section 17(5) of the Central Goods and Services Act, 2017 provides that input tax credit in respect of the following shall not be available-(c) works contract services when supplied for construction of immovable property (other than plant and machinery) except where it is an input service for further supply of works contract service;(d) goods or services or both received by a taxable person for c

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Goods and Services Tax – GST – By: – Dr. Sanjiv Agarwal – Dated:- 9-2-2018 – Till GST was introduced in India in July, 2017, taxation of alco-beverages was in absolute domain of State taxation- be it value added tax or sale tax, duly on manufacture in the form of state excise duty, municipal taxes such as octroi, entry tax etc. In GST regime, taxation of alco-beverages has been specifically carved out of GST so much so that GST shall not be levied on alco-beverages – manufacturing as well as marketing or distribution thereof. However, certain inputs, input services and value additions in relation to such products shall be liable to levy of GST which puts this industry into a disadvantageous position. It is a fact that liquor industry in In

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l, regulation, supervision requiring more than one permission, licence, permit or fee. The industry players are required to pay amounts for all such permission or licences or permits. Such payments become mandatory for the furtherance of business of alco-beverages these are not in the nature of tax (goods and service tax) and as such, levy of such fees can not be objected to permit fee or licence fee payment to Government or Local Authority is an essential payment to pursue business without which business operations can not continue. These payments enable continuity of business and therefore are support services for business or commerce. These payments would attract levy of goods and services tax. However, there will be no input tax credit

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2018 (2) TMI 1798 – KERALA HIGH COURT – [2018] 2 GSTL 115 (Ker) – Release of detained goods – Rule 140(1) of the KGST Rules, 2017 – Held that:- Identical matter has been disposed of by a Division Bench of this Court in THE COMMERCIAL TAX OFFICER AND THE INTELLIGENCE INSPECTOR VERSUS MADHU. M.B. [2017 (9) TMI 1044 – KERALA HIGH COURT], directing expeditious completion of the adjudication of the matter and permitting release of the goods detained pending adjudication, in terms of Rule 140(1) of the Kerala Goods and Services Tax Rules, 2017 – petition disposed off. – W.P.(C).No.4280 of 2018 Dated:- 9-2-2018 – P.B.SURESH KUMAR, J. For the Petitioner(S):- Represented by Mr. Biju M Nair By Advs. Sri. Jolly John, Smt. Liza Meghan Cyriac. For the

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2018 (3) TMI 1247 – CESTAT, NEW DELHI – TMI – Time Limitation – grievance of the Revenue is that there is a case for suppression of material facts on the part of the respondent and impugned order should not have dropped the proceedings on limitation – Held that: – The impugned order held that seeing the accounts maintained and the nature of contracts and the correspondent with the Revenue by the respondent, there is no scope for invoking extended period – appeal dismissed – decided against Revenue. – Service Tax Appeal No. 57713 of 2013 – Final Order No. 50626/2018 – Dated:- 9-2-2018 – Shri S.K. Mohanty, Member (Judicial) And Shri B. Ravichandran, Member (Technical) Shri A.K. Singh, Authorized Representative (DR) – for the appellant. Shri

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e the Original Authority held that the respondent is liable to taxes and imposed penalties also. The impugned order held that their activities are not liable to tax prior to 15/06/2005, the date on which the amendment in the tax entry for management, maintenance or repair service was brought in to include immovable property also. Considering the facts of the case, intimation by the respondent and various correspondence thereafter the impugned order held that no allegation of suppression, willful mis-statement cannot be sustained against the respondent. Accordingly, the impugned order allowed the appeal filed by the respondent. 2. We have heard both the sides and perused the appeal record. The grievance of the Revenue is that there is a case

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order. On perusal of such discussion, we find no reason to vary the finding. The Revenue also did not come with any material facts to support such course of action. 4. Regarding limitation, we note that the impugned order elaborately examined the facts of the case. We note that the enquiry against the respondent started on 29/09/2004 by summon proceedings. The respondent obtained registration for service tax on 02/11/2004. The enquiry and verification continued for many years thereafter. Show cause notice was issued demanding service tax under management, maintenance or repair service. The impugned order held that seeing the accounts maintained and the nature of contracts and the correspondent with the Revenue by the respondent, there is n

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2018 (2) TMI 983 – KERALA HIGH COURT – 2018 (13) G. S. T. L. 64 (Ker.) , [2018] 2 GSTL 114 (Ker) – Release of detained goods – Section 129 of the Central Goods and Services Tax Act as also the Kerala State Goods and Services Tax Act – Held that: – an identical matter has been disposed of by a Division Bench of this Court in The Commercial Tax Officer And The Intelligence Inspector Versus Madhu. M.B. [2017 (9) TMI 1044 – KERALA HIGH COURT], directing expeditious completion of the adjudication of the matter and permitting release of the goods detained pending adjudication, in terms of Rule 140(1) of the Kerala Goods and Services Tax Rules, 2017 – the writ petition is disposed of directing the competent authority to complete the adjudication

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2018 (2) TMI 770 – GUJARAT HIGH COURT – 2018 (10) G. S. T. L. 424 (Guj.) – Levy GST on ocean freight whereas the value of import goods includes Ocean Freight. – Vires of N/N. 8/2017-Integrated Tax [Rate] dated 28th June 2017 and Entry 10 of the N/N. 10/2017-Integrated Tax [Rate] also dated 28th June 2017 – petitioner's grievance is that under the impugned Notifications, the petitioner is asked to pay tax at the prescribed rate all over again on the ocean freight – Counsel for the petitioner submitted that the impugned Notifications are ultra vires the Act and are in any case in exercise of excessive delegation of powers of subordinate legislation – Held that: – Notice and notice as to interim relief, returnable on 9th March 2018. – Special

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ons, the petitioner is asked to pay tax at the prescribed rate all over again on the ocean freight. The petitioner's challenge has principally three elements viz., [a] having paid the tax under IGST Act on the entire value of imports; inclusive of the ocean freight, the petitioner cannot be asked to pay tax on the ocean freight all over again under a different notification; [b] in case of CIF contracts, the service provider and service recipient both are outside the territory of India. No tax on such service can be collected even on reverse charge mechanism, and [c] in case of High Sea sales, the burden is cast on the petitioner as an importer whereas, the petitioner is not the recipient of the service at all. It is the petitioner's

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Goods and Services Tax – 31/05/2018 – Dated:- 9-2-2018 – Circular No. 31/05/2018 – GST F. No. 349/75/2017-GST Government of India Ministry of Finance Department of Revenue Central Board of Excise and Customs GST Policy Wing *** New Delhi, 9th February 2018 To, The Principal Chief Commissioners/Chief Commissioners/Principal Commissioners/ Commissioners of Central Tax / Commissioners of Central Tax (Audit)/ Principal Director General of Goods and Services Tax Investigation/ Director General of Systems Madam/Sir, Subject: Proper officer under sections 73 and 74 of the Central Goods and Services Tax Act, 2017 and under the Integrated Goods and Services Tax Act, 2017-reg. The Board, vide Circular No. 1/1/2017-GST dated 26th June, 2017, assigned proper officers for provisions relating to registration and composition levy under the Central Goods and Services Tax Act, 2017 (hereinafter referred to as the CGST Act ) and the rules made thereunder. Further, vide Circular No. 3/3/2017 – GST dated

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Tax viii(a). Sub-sections (1), (2), (3), (5), (6), (7), (9) and (10) of Section 74 3. Further, in light of sub-section (2) of section 5 of the CGST Act, whereby an officer of central tax may exercise the powers and discharge the duties conferred or imposed under the CGST Act on any other officer of central tax who is subordinate to him, the following entry is hereby removed from the Table on page number 2 of Circular No. 3/3/2017-GST dated 5th July, 2017:- Sl. No. Designation of the Officer Functions under Section of the Central Goods and Services Tax Act, 2017 or the rules made thereunder (1) (2) (3) 3. Deputy or Assistant Commissioner of Central Tax vi. Sub-sections (1), (2), (3), (5), (6), (7), (9) and (10) of Section 74 4. In other words, all officers up to the rank of Additional/Joint Commissioner of Central Tax are assigned as the proper officer for issuance of show cause notices and orders under subsections (1), (2), (3), (5), (6), (7), (9) and (10) of sections 73 and 74 of the

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onetary limit of the amount of central tax (including cess) not paid or short paid or erroneously refunded or input tax credit of central tax wrongly availed or utilized for issuance of show cause notices and passing of orders under sections 73 and 74 of CGST Act Monetary limit of the amount of integrated tax (including cess) not paid or short paid or erroneously refunded or input tax credit of integrated tax wrongly availed or utilized for issuance of show cause notices and passing of orders under sections 73 and 74 of CGST Act made applicable to matters in relation to integrated tax vide section 20 of the IGST Act Monetary limit of the amount of central tax and integrated tax (including cess) not paid or short paid or erroneously refunded or input tax credit of central tax and integrated tax wrongly availed or utilized for issuance of show cause notices and passing of orders under sections 73 and 74 of CGST Act made applicable to integrated tax vide section 20 of the IGST Act (1) (2)

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having their principal places of business falling in multiple Commissionerates, the show cause notice shall be adjudicated by the competent central tax officer in whose jurisdiction, the principal place of business of the noticee from whom the highest demand of central tax and/or integrated tax (including cess) has been made falls. 7. Notwithstanding anything contained in para 6 above, a show cause notice issued by DGGSTI in which the principal places of business of the noticees fall in multiple Commissionerates and where the central tax and/or integrated tax (including cess) involved is more than ₹ 5 crores shall be adjudicated by an officer of the rank of Additional Director/Additional Commissioner (as assigned by the Board), who shall not be on the strength of DGGSTI and working there at the time of adjudication. Cases of similar nature may also be assigned to such an officer. 8. In case show cause notices have been issued on similar issues to a noticee(s) and made answerable

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Goods and Services Tax – Started By: – Vidhya Lingam – Dated:- 8-2-2018 Last Replied Date:- 9-2-2018 – Respected sir, i have an GST no. Today i here no GST for labour contractor i am as a labour contractor in sugar mill – Reply By KASTURI SETHI – The Reply = Your service falls under Manpower Supply. What is your turnover ? – Reply By Ganeshan Kalyani – The Reply = Gst is applicable on manpower supply service if the turnover is more than the prescribed threshold limit. – Discussion-Forum – Knowl

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Goods and Services Tax – Started By: – SAFETAB LIFESCIENCE – Dated:- 8-2-2018 Last Replied Date:- 9-2-2018 – Dear Experts, Our company is in Pondicherry. Our staff submitting Food Bills consumed by them during their official visits to local and other states. 1. Local bills with CGST+SGST.2. Other state bills with IGST3. Other state bills with CGST+SGSTAll the above 3 categories are eligible for ITC. ???? Our staff trip is purely official. Further, we are providing Food to our Employees for which we are not collecting any amount from our Employees. The caterer is giving local bills with CGST+SGST. Shall we take ITC credit of this. – Reply By HINDUSTHANCHEMICALS COMPANY – The Reply = Section 17 – Apportionment of tax and settlement of funds.

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Goods and Services Tax – Started By: – SURYAKANT MITHBAVKAR – Dated:- 8-2-2018 Last Replied Date:- 10-2-2018 – We have proprietory concern which is registered under GST Act and obtained GST Number.We have started new proprietory concern under same proprietor now we have to register the same.How we will get register the new firm whether we have to amend the existing registration under amendment of core field on GST server or apply as fresh registration. – Reply By Alkesh Jani – The Reply = Sir, please elaborate the nature of business of first concern and nature of second concern. – Reply By SURYAKANT MITHBAVKAR – The Reply = First Proprietory concern is manufacturing pharmaceutical Machinery and second concern is providing Renting on Immova

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ds to take separate registration in each State. Further, the person may take more than one registration within a State if the person has multiple business verticals. A person who has obtained or is required to obtain more than one registration, whether in one State or Union territory or more than one State or Union territory shall, in respect of each such registration, be treated as distinct persons for the purposes of GST. Hence, a supply between these entities constitutes supply under GST. – Reply By SURYAKANT MITHBAVKAR – The Reply = Both concern in same state under one proprietor. – Reply By SURYAKANT MITHBAVKAR – The Reply = CAN WE KEEP ONLY ONE REGISTRATION BY AMENDING OUR EXISTING GST REGISTRATION SINCE PROPRIETOR IS SAME PERSON HAVI

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2018 (2) TMI 1744 – CESTAT HYDERABAD – TMI – Reversal of CENVAT Credit – benefit of N/N. 82/84 is availed – denial of benefit on the ground that the benefit of N/N. 82/84 is availed and exemption granted, appellant having availed CENVAT credit on common input services is required to reverse an amount equivalent to 6% of the value of the goods – Held that:- Identical issue decided in appellant own case INOX AIR PRODUCTS PVT. LTD. VERSUS CCE & ST VISAKHAPATNAM [2017 (9) TMI 500 – CESTAT HYDERABAD], where reliance was placed in the case of DHARAMSI MORARJI CHEMICAL CO. LTD. Versus COMMR. OF C. EX., RAIGAD [2010 (3) TMI 561 – CESTAT MUMBAI], where the very same rule 6 of Cenvat Credit Rules was invoked, where the Bench has held that the provis

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d Limited claiming exemption on following procedure required under Chapter X procedure. It is undisputed that the purchasers of the final products manufactured by the appellant have, followed the procedures under Chapter X. It is the case of the Revenue that the procedure followed under Notification No. 82/84 is an exemption granted and appellant having availed CENVAT credit on common input services which are utilised for the manufacturing of final products needs to maintain separate records, having not done so, should discharge an amount equivalent to 6% of the value of the goods cleared to Hindustan Shipyard Limited. 4. I find the issue is no more res integra. In the appellant s own case, vide Final Order No. A/31276/17 dated 17.08.2017 a

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2018 (2) TMI 1184 – CESTAT CHENNAI – TMI – Valuation – includibility – transaction charges – Stock Broking Service – Held that: – It cannot be nobodys case that the transaction charges are charged by the appellants on the clients. It is evident that these charges are required to be paid by the clients only to the stock exchange for the transactions in shares or stocks that they may have entered into on their own or through the stock brokers like the appellant herein. Merely because the appellants are collecting the said charges from their clients and remitting the same to the concerned stock exchange cannot be a reason for considering such amounts as received by them for services rendered by them.
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In the case of First Securities Pvt. Ltd. [2007 (6) TMI 33 – CESTAT, BANGALORE] the Tribunal has held that handling charges collected from investors and the amounts collected towards transaction charges cannot be equated to brokerage or commission for purchase of securities.
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App

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dication, these proposals were confirmed and in addition, penalties were also imposed under Section 76 and 78 of the Finance Act, 1994. On appeal, penalty under 76 was set aside, however, the rest of the order of the original authority was upheld by the Commissioner (Appeals). Hence, this appeal. 2. Today when the matter came up for hearing, Ld. Advocate Ms. Radhika Chandrasekar submitted that prior to the amendment to the Finance Act, 1994 passed w.e.f. 18.04.2006, valuation of taxable services for charging service tax as per Section 67 ibid read as under:- "67 Valuation of taxable services for charging service tax For the purposes of this Chapter, the value of any taxable service shall be the gross amount charged by the service provider for such service provided or to be provided by him. Explanation 1. For the removal of doubts, it is hereby declared that the value of a taxable service, as the case may be, includes, (a) the aggregate of commission or brokerage charged by a broke

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am, AC supports the impugned order. He draws our attention to the finding of the Commissioner (Appeals) that the amounts collected by the appellant as transaction charges is nothing but consideration received by them, which is therefore required to be added in the taxable value and the liability to pay service tax will definitely arise. 4. Heard both sides and have gone through the facts. 5.1 We find merit in the arguments of the Ld. Counsel. It cannot be nobody's case that the transaction charges are charged by the appellants on the clients. It is evident that these charges are required to be paid by the clients only to the stock exchange for the transactions in shares or stocks that they may have entered into on their own or through the stock brokers like the appellant herein. Merely because the appellants are collecting the said charges from their clients and remitting the same to the concerned stock exchange cannot be a reason for considering such amounts as received by them fo

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nvited our attention to Annexure D in Page 38 of Paper Book wherein a letter addressed to the Asstt. Commissioner giving details of transaction charges issued from National Stock Exchange of India Ltd. for year 1999-2003 was furnished. Further he invited our attention to Section 67(a) of the Finance Act which deals with valuation of taxable services in relation to service provider by the stock broker. In terms of the above provisions, the value of taxable service in relation to service provided by a stock broker, shall be the aggregate of the commission or brokerage charged by him on the sale or purchase of securities from the investors and includes the commission or brokerage paid by the stock broker to any sub-broker. The handling charges collected from the investors cannot be called as brokerage or commission. Similarly, the amounts collected towards transaction charges by the appellants also cannot be equated to brokerage or commission. It is seen that the transaction charges colle

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rtain investors/clients. In respect of speculative transactions, no handling charges were collected from the investors/clients as there was no handling of scrips and certificates. We are convinced that the handling charge is not in the nature of commission or brokerage for purchase of securities. They are incurred in connection with the delivery of scrips. In fine, we hold that the value of taxable services in respect of a stock broker will not include transaction charges and handling charges. Therefore there is no merit in the impugned order. Hence we allow the appeal with consequential relief. The same ratio has been relied in LSE Securities Ltd. (supra). The relevant portion of the said decision is reproduced as below:- "16. The appellants in these appeals received turnover charges, stamp duty, BSE charges, SEBI fees and DEMAT charges contending that the same was payable to different authorities and claimed that the same is not taxable. But Revenue taxed the same on the ground

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ss value of taxable service. On merit, all the appellants succeed on the fundamental principles of taxation. Therefore, other contentions on merit made in respective appeals are not considered in this order. 5.3 In view of the discussions made herein above and in particular following the ratio laid down by the Tribunal in the cases referred supra, we hold in favour of the appellants. The impugned order cannot be sustained for which reason it is set aside. Appeal is allowed with consequential reliefs, if any, as per law. 6. Revenue filed miscellaneous application seeking amendment of the cause title on the ground that the department is shown in the above appeal with jurisdiction of the Commissioner of Central Excise and Service Tax, Chennai, whereas now the same has been changed as The Commissioner of GST & Central Excise, Chennai South Commissionerate, MHU Complex, 692, Anna Salai, Nandanam, Chennai 600 035. We find that the prayer for amendment of the cause title as also the addre

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Don t charge GST from affordable housing buyers: Govt to – Goods and Services Tax – GST – Dated:- 7-2-2018 – New Delhi, Feb 7 (PTI) The government today asked builders not to charge any GST from home buyers as the effective GST rate on almost all affordable housing project is 8 per cent which can be adjusted against the input credit. It said builders can levy GST on buyers of affordable housing projects only if they reduce the apartment prices after factoring in the credit claimed on inputs. In its last meeting on January 18, the GST Council had extended the concessional rate of 12 per cent GST for construction of houses under the Credit Linked Subsidy Scheme (CLSS) to promote affordable housing, which has been given infrastructure status i

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y GST payable on the flats from the buyers . It further said that GST can recovered from buyers only if builders recalibrate the cost of the flat after factoring in the full ITC available in the GST regime and reduces the ex-GST price of flats. The concessional rate of 12 per cent GST was already applicable on houses constructed under three components of the Housing for All (Urban) Mission/ Pradhan Mantri Awas Yojana (Urban) (i) ln-situ redevelopment of existing slums using land as a resource component; (ii) Affordable Housing in partnership and (iii) Beneficiary led individual house construction/enhancement. In the meeting last month, the Council extended this tax benefit to CLSS for Economically Weaker Sections (EWS)/Lower Income Group (

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RBI – Relief for MSME Borrowers registered under Goods and Services Tax (GST) – Circular – TMI Updates – Highlights

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Goods and Services Tax – GST – Dated:- 7-2-2018 – GST Council recommends relief in GST on Circus, Dance and Theatrical Performances Threshold Exemption under GST for admission to such cultural and sports events in the country increased from ₹ 250 to ₹ 500 per person. In its Meeting held on 18th January, 2018, the GST Council has recommended that for the purpose of GST exemption, the threshold price limit of Admission Ticket for circus, dance,theatrical performances including drama o

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Goods and Services Tax – GST – Dated:- 7-2-2018 – GST Council recommends granting relief from GST on services provided by the Resident Welfare Associations (RWAs) to their Members Threshold Exemption Limit under GST for monthly contributions made by members for services provided by RWAs raised from ₹ 5,000 to ₹ 7,500 per month per person In its 25th Meeting held on 18th January, 2018, the GST Council had recommended several measures granting relief from GST on a number of goods and services. One of the important reliefs granted by the Council is to enhance the limit of contribution made by members of a Resident Welfare Association (RWA) for the purpose of exemption from GST. The Council had recommended tha

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den on RWAs will be lower for the reason that they would now be entitled to Input Tax Credit (ITC) in respect of taxes paid by them on capital goods (generators, water pumps, lawn furniture etc.), goods (taps, pipes, other sanitary/hardware fillings etc.) and input services such as repair and maintenance services. ITC of Central Excise and VAT paid on goods and capital goods was not available in the pre-GST period and these were a cost to the RWA. The Notifications giving effect to the above recommendations of the GST Council have been issued and have come into force on 25th January, 2018. Accordingly, from 25 January 2018, the services provided by Resident Welfare Association to its members against contribution-up to an amount o

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Goods and Services Tax – GST – Dated:- 7-2-2018 – In its Meeting held on 18th January, 2018, the GST Council had recommended reduction of GST rate on services by way of admission to Amusement Parks including theme parks, water parks, joy rides, merry-go-rounds, go-carting and ballet from 28% to 18%. These services hitherto attracted GST @ 28%. Requests were received from several quarters that amusement parks promote social wellness and beget fun and learning for children and their families in a

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