Goods and Services Tax

Confusions in GST Law: Part 2
By: – Altamush Zafar
Goods and Services Tax – GST
Dated:- 29-3-2018

Continuing our series Confusions in GST, this time we will be discussing about:
Industry: Finance Industry
Topic: Input Tax Credit
A brief description about what is input tax credit – Input Tax Credit is the tax paid on purchases of goods and services and which can be utilized for payment of tax on sale of goods or services.
Here we are discussing about ITC in Institutions and Companies which engage in granting and accepting loans and deposits.
Accepting and Granting Loans is a service for which consideration is in the form of Interest. This Interest is exempt from GST and specifically comes under Nil Rated Supplies. Howeve

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ed for taxable outward supplies or they are used for Exempt Outward Supplies or they are for common supplies. As Financial Institutions like banks have a lot of transaction on per day basis and business being spread out throughout the Nation it may become cumbersome for such financial institutions to calculate reversal by this method. This method is also not cost effective because it requires immense efforts to calculate the exact amount and the corresponding benefit might not be that fruitful.
Considering the above situation the Act has allowed such financial institutions including NBFC's to take 50% of all eligible input credits [not blocked by section 17(5)] and the rest shall lapse. The Act provides that 50% credits shall be taken

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. Trading in gold is a taxable business. Whatever you buy, you sell that quantity. Now the bank (assuming it has availed the option of 50% credits) will sell gold with 3% tax but while buying the same will take credits of whole 3% or 1.5%?. This is just one example, Public Sector Financial Institutions carry on many businesses which are totally unrelated to finance. They will also face similar problems.
Possible solutions may be either not to take the option but that will increase workload immensely OR separate registration as different business vertical but then imagine different verticals for each business and each state will result in number of registration for the same bank and this will increase the compliance workload.
What are your

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M/s SRKM STEEL PVT. LTD. Versus THE STATE OF ASSAM AND 4 ORS.
GST
2018 (3) TMI 1691 – GAUHATI HIGH COURT – 2018 (18) G. S. T. L. J213 (Gau)
GAUHATI HIGH COURT – HC
Dated:- 29-3-2018
WP(C) 1834/2018
GST
MR. ACHINTYA MALLA BUJOR BARUA , J.
Advocate for the Petitioner : MS. M L GOPE
Advocate for the Respondent : SC, FINANCE DEPTT.
ORDER
Heard Ms. M.L. Gope, learned counsel for the petitioner, Mr. D. Saikia, learned Senior Additional Advocate General, State of Assam and Mr. S.C Keyal, learned ASGI appearing for the respondents in the Union of India.
The petitioner firm is assessable under the GST Act and for the purpose, they are required to file online mandatory returns in the form of GSTR-1 or if GSTR-1 is not possi

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ated 18.12.2017 before the Superintendent of Taxes, Unit-D, C-8, Kar Bhawan, Ganeshguri, Guwahati highlighting the aforesaid inconvenience with a request for appropriate advice. As nothing was done, a further representation dated 08.01.2018 was also submitted.
A communication from the GST Help Desk has also been brought on record, by which the petitioner was informed that in the event the temporary authorized signatory is dead or is not traceable, the appropriate remedy would be to approach the Revisional Jurisdictional Tax Officer to set up a new authorized signatory in the GST portal.
From the said communication, it appears that the jurisdictional tax officer, who in the present case is said to be the Superintendent of Taxes is the appr

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Extension of date for submitting the statement in FORM GST TRAN-2 under rule 117(4)(b)(iii) of the Puducherry Goods and Services Tax Rules, 2017.
01/2018-Puducherry GST Dated:- 29-3-2018 Puducherry SGST
GST – States
GOVERNMENT OF PUDUCHERRY
COMMERCIAL TAXES DEPARTMENT
F. No.3074/CTD/GST/2018.
Puducherry, dated 29th March 2018.
ORDER
No. 1/2018-Puducherry GST
Subject : Extension of date for submitting the statement in FORM GST TRAN-2 under rule 117(4)(b)(iii) of the Puducherry Good

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In order to clarify the extension of date for submitting statement in form GST TRAN-2 under rule 117(4)(b)(iii) of the Andhra pradesh goods and services tax rules.
NO.01/2018 Dated:- 29-3-2018 Andhra Pradesh SGST
GST – States
GOVERNMENT OF ANDHRA PRADESH
COMMERCIAL TAXES DEPARTMENT
ORDER NO.01/2018
[NO.CCT/CCW/GST/74/2015,
DATED 29-3-2018
In exercise of the powers conferred by sub-clause (iii) of clause (b) of sub-rule (4) of rule 117 of the Andhra Pradesh Goods and Services Tax R

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Extends the time limit for furnishing the details of outward supplies in FORM GSTR-1.
005/2018-GST Dated:- 29-3-2018 Assam SGST
GST – States
Assam SGST
Assam SGST
GOVERNMENT OF ASSAM
ORDERS BY THE GOVERNOR
OFFICE OF THE COMMISSIONER OF STATE TAX:: ASSAM KAR BHAWAN
Notification No. 05/2018-GST
The 29th March, 2018
No. CT/GST-14/2017/109.- In exercise of the powers conferred by the second proviso to sub-section (1) of section 37 of the Assam Goods and Services Tax Act, 2017 (Assam Act No. XXVIII of 2017) (hereafter in this notification referred to as “the said Act”), the Commissioner, on the recommendations of the Council, hereby extends the time limit for furnishing the details of outward supplies in FORM GSTR-1 under sub

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Extension of date for filling the return in FORM GSTR-6.
006/2018-GST Dated:- 29-3-2018 Assam SGST
GST – States
Assam SGST
Assam SGST
GOVERNMENT OF ASSAM
ORDERS BY THE GOVERNOR
OFFICE OF COMMISSIONER OF STATE TAX ASSAM KAR BHAWAN
Notification No. 6/2018-GST
The 29th March, 2018
No. CT/GST-14/2017/110.- In exercise of the powers conferred by sub-section (6) of section 39 of the Assam Goods and Services Tax Act, 2017, (Assam Act No. XXVIII of 2017) (hereafter in this notificati

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Extends the time limit for furnishing the return by an Input Service Distributor in FORM GSTR-6.
CCT/26-2/2017-18/33/6132 Dated:- 29-3-2018 Goa SGST
GST – States
Goa SGST
Goa SGST
GOVERNMENT OF GOA
Department of Finance
Office of the Commissioner of Commercial Taxes
__
Notification
No. CCT/26-2/2017-18/33/6132
In exercise of the powers conferred by sub-section (6) of Section 39 read with Section 168 of the Goa Goods and Services Tax Act, 2017 (Goa Act 4 of 2017) (hereinafter

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Last date for filing of return in FORM GSTR-1.
CCT/26-2/2017-18/32/6131 Dated:- 29-3-2018 Goa SGST
GST – States
Goa SGST
Goa SGST
GOVERNMENT OF GOA
Department of Finance
Office of the Commissioner of Commercial Taxes
__
Notification
No. CCT/26-2/2017-18/32/6131
In exercise of the powers conferred by the second proviso to sub-section (1) of Section 37 read with Sec29tion 168 of the Goa Goods and Services Tax Act, 2017 (Goa Act 4 of 2017) (hereafter in this Notification referred to as the Act), the Commissioner, on the recommendations of the Council, hereby extends the time limit for furnishing the details of outward supplies in FORM GSTR-1 under sub-section (1) of Section 37 of the Act for the months as specified in colu

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Extension of date for submitting the statement in FORM GST TRAN-2 under Rule 117(4)(b)(iii) of the Goa Goods and Service Tax Rules, 2017.
CCT/26-2/2017-18/12/6129 Dated:- 29-3-2018 Goa SGST
GST – States
Goa SGST
Goa SGST
GOVERNMENT OF GOA
Department of Finance
Office of the Commissioner of Commercial Taxes
__
Order
No. CCT/26-2/2017-18/12/6129
Sub.: Extension of date for submitting the statement in FORM GST TRAN-2 under Rule 117(4)(b)(iii) of the Goa Goods and Service Tax Ru

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Last date for filing of return in FORM GSTR-3B.
04/2018 Dated:- 29-3-2018 Telangana SGST
GST – States
Telangana SGST
Telangana SGST
GOVERNMENT OF TELANGANA
COMMERCIAL TAXES DEPARTMENT
TGST Notification No. 04/2018
CCT's Ref No. A(1)/103/2017,
Dt. 29-03-2018
In exercise of the powers conferred by Section 168 of the Telangana Goods and Services Tax Act, 2017 (23 of 2017) (hereafter in this notification referred to as the Act) read with sub-rule (5) of Rule 61 of the Telangana Goods and Services Tax Rules, 2017, the Commissioner of State Tax, Telangana, on the recommendations of the Council, hereby specifies that the return in FORM GSTR-3B for the month as specified in column (2) of the Table below shall be furnished elect

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Notification regarding furnishing of Form GSTR-1 effected during the quarter April to June, 2018 till 31.07.2018.
F.1-11(91)-TAX/GST/2018(Part) Dated:- 29-3-2018 Tripura SGST
GST – States
Tripura SGST
Tripura SGST
GOVERNMENT OF TRIPURA
FINANCE DEPARTMENT
(TAXES & EXCISE)
No.F.1-11(91)-TAX/GST/2018(Part)
Dated, Agartala, the 29th March, 2018
NOTIFICATION
In exercise of the powers conferred by section 148 of the Tripura State Goods and Services Tax Act, 2017 (Tripura Act No. 9

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Extension of date for submitting the statement in FORM GST TRAN-2 under rule 11 of the Tripura State Goods and Service Tax Rules, 2017.
F.1-11(91)-TAX/GST/2018(Part)/2448-54 Dated:- 29-3-2018 Tripura SGST
GST – States
GOVERNMENT OF TRIPURA
OFFICE OF THE CHIEF COMMISSIONER OF STATE TAX
PANDIT NEHRU COMPLEX, GURKHABSTI, AGARTALA
No.F.1-11(91)-TAX/GST/2018(Part)/2448-54
Dated, Agartala, the 29th March, 2018
ORDER
Subject: Extension of date for submitting the statement in FORM GST TRA

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Seeks to mandate the furnishing of return in FORM GSTR-3B from April to June 2018
F.No. 3240/CTD/GST/2018/1 Dated:- 29-3-2018 Puducherry SGST
GST – States
Puducherry SGST
Puducherry SGST
F. No.3240/CTD/GST/2018/1
GOVERNMENT OF PUDUCHERRY
COMMERCIAL TAXES DEPARTMENT
Puducherry, 29th March, 2018
NOTIFICATION
In exercise of the powers conferred by section 168 of the Puducherry Goods and Services Tax Act, 2017 (Act No.6 of 2017) (hereafter in this notification referred to as the Act) read with sub-rule (5) of rule 61 of the Puducherry Goods and Services Tax Rules, 2017, the Commissioner of State Tax, Puducherry on the recommendations of the Council, hereby specifies that the return in FORM GSTR-3B for the months as specified

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Amendment to APGST Rules, 2017 – Rules with respect to e-way bills issued – Effective Date Notified.
G.O.Ms.No.141 Dated:- 29-3-2018 Andhra Pradesh SGST
GST – States
Andhra Pradesh SGST
Andhra Pradesh SGST
GOVERNMENT OF ANDHRA PRADESH
REVENUE DEPARTMENT
(COMMERCIAL TAXES-II)
[G.O.Ms.No.141, Revenue (Commercial Taxes-II), 29th March, 2018.]
NOTIFICATION
In exercise of the powers conferred by Section 164 of the Andhra Pradesh Goods and Services Tax Act, 2017 (16 of 2017), the G

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Seeks to extend the due dates for the furnishing of FORM GSTR-1 for those taxpayers with aggregate turnover of more than 1.5 crores.
07/2018-C.T./GST Dated:- 29-3-2018 West Bengal SGST
GST – States
West Bengal SGST
West Bengal SGST
GOVERNMENT OF WEST BENGAL
DIRECTORATE OF COMMERCIAL TAXES
14, BELIAGHATA ROAD, KOLKATA-700015
NOTIFICATION BY THE COMMISSIONER OF STATE TAX
Notification No. 07/2018-C.T./GST Dated: 29.03.2018
Whereas, rules 138 to 138D of the West Bengal Goods and Services Tax Rules, 2017 containing provisions of e-way bill, have been substituted by the West Bengal Goods and Services Tax (Second Amendment) Rules, 2018 vide Notification No. 281-F.T. [12/2018-State Tax] dated 07.03.2018;
And whereas, the 1st da

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Input Tax Credit
Query (Issue) Started By: – DEEPAK SHARMA Dated:- 28-3-2018 Last Reply Date:- 28-3-2018 Goods and Services Tax – GST
Got 2 Replies
GST
Sir,
a company sending their staff

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Inverted Tax Utilization
Query (Issue) Started By: – DEEPAK SHARMA Dated:- 28-3-2018 Last Reply Date:- 29-3-2018 Goods and Services Tax – GST
Got 5 Replies
GST
Sir,
One is manufacturing normal products, where rate of tax on inputs and output is almost same, simultanously they manufacturing footwear where input tax rate is higher i.e. 18% and output tax rate is 6% it means its under inverted tax rate structure.
Is it possible to the taxpayer they can use spare tax accumulated on raw material of footwear to liability arised on normal products.
Thanks
Reply By KASTURI SETHI:
The Reply:
Yes. There is no restriction on utilisation in the situation explained. Even now refund is admissible but too many strings are attached.

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LUT for FY 18-19
Query (Issue) Started By: – MistralSolutionsPrivateLimited Dated:- 28-3-2018 Last Reply Date:- 6-4-2018 Goods and Services Tax – GST
Got 14 Replies
GST
Dear All,
LUT online submission in GST Portal is available for the FY 18-19.
Please provide a clarity as to whether only online submission is sufficient or should we file off line also like FY 17-18.
please clarify.
thanks.
Saravanan.
Reply By SHIVKUMAR SHARMA:
The Reply:
Online is Sufficient.Not required to submit hard Copy.
Reply By MistralSolutionsPrivateLimited:
The Reply:
Is there any circular available from department side stating that only online is sufficient?.
Saravanan.
Reply By Alkesh Jani:
The Reply:
Sir, till date I have not came across any such authority. Therefore, it is suggested that LUT may be filed online and download the hard copy of the same submit it to the J.O.
Reply By KASTURI SETHI:
The Reply:
Pl. read Point No. 2(L) of the following circular:-
Export of goods – Furni

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ply:
' Liberty' of filing LUT manually has ended from the date of availability of online facility. Note the words 'at liberty' in the highlighted para of Board's circular. This circular has discussed notification referred to by you. The manual facility was for the time being.
Reply By Alkesh Jani:
The Reply:
Sir, Thanks for your reply, but sorry to say still I am confused that the word liberty is with regards, to furnishing LUT before either Central or State Officer. Further, When notification mentions of LUT on letter head and to be submitted in duplicate. Can Circular be relied upon.Moreover, on GST portal does not speaks about this.
Regards,
Reply By KASTURI SETHI:
The Reply:
We should not be dragged into such trivial matters. Every item of work is going paperless. From A to Z, will be on common portal system. If Common Portal System does not click on any kind of work, we have to resort to manual submissions of docs. These are procedural matters. Nobody is

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t LUT number, Which is Acknowledgement. No Seperate Acknowledgement is Required as confirmed by Department in their Tweets.
Refer Below tweets:
Reply By Ganeshan Kalyani:
The Reply:
interaction with the department in person has been reduced by adopting online method. This is ease of doing business. Good part of GST.
Reply By Alkesh Jani:
The Reply:
Dear all, with due respect to all, I just want to inform you that as on i.e. 05/04/2018, on my personal visit to Range office and Division office of CGST, Ahmedabad, it was informed that still menu for granting LUT online is not available on their screen. The exporter may not suffer for any litigation, in future so it is my humble request that please visit your J.O. although LUT is filed online.
With Regards,
Reply By Keyur Mehta:
The Reply:
I agree with Mr. Alkesh Jani.
It is good to think that online submission is sufficient given the provisions and law. However, it is practical experience that if due care not taken, may lead to

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GST HSN CODE FOR DIRECT SELLING
Query (Issue) Started By: – vijeta sarkar Dated:- 28-3-2018 Last Reply Date:- 29-3-2018 Goods and Services Tax – GST
Got 6 Replies
GST
NOT ABLE TO UNDERSTAND HOW IT WILL WORK FOR DIRECT SELLING
Reply By Alkesh Jani:
The Reply:
Sir/Madam,
Please elaborate your query, so that our experts can reply accordingly.
Reply By Ganeshan Kalyani:
The Reply:
if you are doing trading activity then HSN of goods will be applicable . if you are a c &f agent then

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Balance claim of States under GST
GST
Dated:- 28-3-2018

The Government is providing claims to the States under GST. As per provisions in Section 7 of the GST (Compensation to States) Act, 2017 loss of revenue to the States shall be calculated and compensation for loss of revenue to the State shall be provisionally calculated and released at the end of every two months' period. As per Section 4 of the said Act, financial year 2015-16 has been taken as the base year for calculating c

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GST ON SUPPLY OF MAN POWER
Query (Issue) Started By: – PAWANKUMAR GARG Dated:- 28-3-2018 Last Reply Date:- 29-3-2018 Goods and Services Tax – GST
Got 3 Replies
GST
SIR,
ONE OF MY CLIENT IS PROVIDING MAN POWER TO NAGAR COUNCIL. PL.LET ME KNOW WHEATHER SERVICE IS TAXABLE. IF YES THEN SERVICE CODE AND RATE OF TAX.
Reply By Ganeshan Kalyani:
The Reply:
HSN/ SAC 99979 , GST @18%
Reply By Alkesh Jani:
The Reply:
Sir, Can we classify under SAC 998519.
Reply By KASTURI SETHI:
The Repl

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GOODS TO CLEAR UNDER WARRANTY PERIOD
Query (Issue) Started By: – SURYAKANT MITHBAVKAR Dated:- 28-3-2018 Last Reply Date:- 29-3-2018 Goods and Services Tax – GST
Got 1 Reply
GST
We have supply Pharma Machinery under warranty period for 1 year.
Now the same machine is breakdown at customer site and we want to supply them some spares under warranty period .
What type of document to be prepared for clearance the spares to customer site.
Reply By Ganeshan Kalyani:
The Reply:
delivery

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GOODS CLEARANCE UNDER GST
Query (Issue) Started By: – SURYAKANT MITHBAVKAR Dated:- 28-3-2018 Last Reply Date:- 2-5-2018 Goods and Services Tax – GST
Got 2 Replies
GST
If we have to prepare Supply Invoice on 31st March for Inter state supply, generate EWAY bill and the transporter is not lifting the material on the same day. However the transporter lifts the material on 5th April which would be next financial year and fill up Part II in Eway bill on same day.
In above case can we book our sale in current financial year since we have prepared supply invoice on 31st March 2018 . Secondly whether transporter can give us LR on 31st March,2018.
Further upto what period can we hold the material for clearance to Intra-State or Inters

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Extension of date for submitting the statement in FORM GST TRAN-2 under rule 117(4)(b)(iii) of the Central Goods and Service Tax Rules, 2017
Order No. 1 /2018 Dated:- 28-3-2018 Central GST (CGST)
GST
CGST
CGST
Government of India
Ministry of Finance
Department of Revenue
Central Board of Excise and Customs
New Delhi, the 28th March, 2018
Order No. 1 /2018 – Central Tax
Subject: Extension of date for submitting the statement in FORM GST TRAN-2 under rule 117(4)(b)(iii) of the

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Seeks to prescribe the due date for quarterly furnishing of FORM GSTR-1 for those taxpayers with aggregate turnover of upto 1.5 crore.
F.NO.FIN/REV-3/GST/1/08 (Pt-1)/130 Dated:- 28-3-2018 Nagaland SGST
GST – States
Nagaland SGST
Nagaland SGST
GOVERNMENT OF NAGALAND
FINANCE DEPARTMENT
(REVENUE BRANCH)
F.NO.FIN/REV-3/GST/1/08 (Pt-1)/130
NOTIFICATION
Dated: 28th March, 2018
In exercise of the powers conferred by section 148 of the Nagaland Goods and Services Tax Act, 2017 (4 of 2017) (hereafter in this notification referred to as the Act), the State Government, on the recommendations of the Council, hereby notifies the registered persons having aggregate turnover of up to 1.5 crore rupees in the preceding financial year or

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