Goods and Services Tax

Goods and Services Tax – GST – Dated:- 25-12-2017 – Q. Is a job worker required to take registration? Ans. As job work is a service, it would be considered a supply and the job worker would be required to obtain registration if his aggregate turnover exceeds ₹ 20 lakhs or, ₹ 10 Lakhs in special category states except the State of Jammu and Kashmir. Q. I short paid tax for the month of Sep 2017 and will deposit the remaining now. Is interest applicable? Ans. Yes. Interest is applicable on this. Q. Are local bodies allowed to make deduction under section 51? If not, how do I claim refund of the same? Ans. No, deduction under section 51 has not yet been notified. For refund of wrongly deducted tax, please see section 51 (8). Q. Ed

= = = = = = = =

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

= = = = = = = =

Goods and Services Tax – GST – By: – Dr. Sanjiv Agarwal – Dated:- 25-12-2017 – Goods and Services Tax (GST), introduced from July 1, 2017 is almost six months old now but has resulted in operational and implementation disruptions affecting all stakeholders. GST law, as drafted and legislated, is not free from the interpretational hassles. GST Council his however, making regular changes to fix the anomalies and hardships faced by taxpayers. Taxpayers have started challenging various provisions of GST laws and rules framed there under. High courts have taken a liberal stand so far in view of the fact that law is new and is yet evolving. However, CBEC may move to supreme court where the verdict is against the Government. Here are few more judicial pronouncements for information and guidance of various stakeholders. It is expected that the litigation is bound to go up as time passes by. In Coimbatore Corporation Contractors Welfare Association v. State of Tamil Nadu and others (2017) 10 T

= = = = = = = =

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

= = = = = = = =

horities a letter of undertaking that the clearance of the imported goods in terms of the AA will be subject to the final result of the present petition. In M/s Metro Institutes of Medical Sciences Pvt Ltd v State of UP & 5 others (2017) 10 TMI 784 (Allahabad) where the assessee was unable to complete the process of migration under GST, as the password for new provisional ID was not issued, the court directed the Department to immediately issue a password to assessee for completing migration process on the GST Portal, to upload its returns and deposit the due tax. In Nila Infrastructure Limited & 1 v. Surat Municipal Corporation & 1 (2017) 11 TMI 809 (Gujarat), it was held that mere downloading of tender document cannot be said to be entry at initial stage to consider such person who has downloaded as bidder/tenderer. As per the tender conditions, the party submitting its bid was required to deposit/pay within the stipulated time the bid document fee/bid processing fee whic

= = = = = = = =

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

= = = = = = = =

titioners. In Ramdev Trading Company & Another v. State of U.P. & 3 others (2017) 12 TMI 341 (Allahabad), where the goods of assessee were detained by detaining authority and also a penalty imposed on the ground that goods were mis described, it was observed that at the stage of seizure the detaining authority had not applied his mind, nor formed any opinion as to intention to evade tax and the only allegation made in the seizure order was to the effect that the Transit Declaration Form (TDF) was absent and that the goods have been mis-described. Also, there was no allegation whatsoever as to the intention of the petitioner to evade tax. In such circumstances, it was held that in absence of any allegation or evasion of tax being made against the petitioner at the stage of detention and seizure and even at the stage of issuance of notice of penalty, it was difficult to sustain the penalty. In M/s M.K. Enterprises through its Prop. Mukesh Kumar v. State of U.P. & 3 Others (20

= = = = = = = =

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

= = = = = = = =

mentioned in the detention memo that the necessary physical verification is required as the E-Way Bill, which was produced, was not relevant as the date and time mentioned had already expired. On physical verification, the authority has found certain irregularities with regard to quality of the goods as well as quantity. The goods which were not accompanied with proper documents were seized for which a notice under Section 129(3) of the U.P. G.S.T. Act had been issued on 26.9.2017 indicating therein the value of the goods and the demanded tax which has been calculated by the seizing authority at different rates as per the individual items/goods which is mentioned being ₹ 1,11,564/-. On the other hand, Circular No. 1117 dated 16.8.2017, in which it was provided that the G.S.T. being the new law, therefore, it may take some time for proper implementation of the scheme of E-Way Bill on all India basis. Rule 138 of U.P. G.S.T. Rules provides for the old E-Way Bill scheme, which was

= = = = = = = =

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

= = = = = = = =

Goods and Services Tax – Started By: – satbir singhwahi – Dated:- 24-12-2017 Last Replied Date:- 25-12-2017 – SirDyeing unit imported machinery and paid IGST on imports. Inputs dyes and chemicals are 18% gst, Whereas Output -dyeing job work is 5% gst. Whether refund under Inverted duty structure allowed for IGST paid on machinery imported. – Reply By Rajagopalan Ranganathan – The Reply = Sir, According to Section 54 (3) (ii) of CGST Act, 2017 a registered person may claim refund of any unutilised input tax credit at the end of any tax period where the credit has accumulated on account of rate of tax on inputs being higher than the rate of tax on output supplies (other than nil rated or fully exempt supplies), except supplies of goods or se

= = = = = = = =

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

= = = = = = = =

017-Central Tax (Rate) dated 28.6.2017 no refund of unutilised input tax credit shall be allowed, where the credit has accumulated on account of rate of tax on inputs being higher than the rate of tax on the output supplies of such goods (other than nil rated or fully exempt supplies). Similarly as per Notification No. 15/2017-Central Tax (Rate) dated 28.6.2017 in respect of supply of service mentioned at Sl. No. 5 (b) of Schedule II of CGST Act, 2017, namely construction of a complex, building, civil structure or a part thereof, including a complex or building intended for sale to a buyer, wholly or partly, except where the entire consideration has been received after issuance of completion certificate, where required, by the competent aut

= = = = = = = =

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

= = = = = = = =

Goods and Services Tax – Started By: – SAFETAB LIFESCIENCE – Dated:- 23-12-2017 Last Replied Date:- 7-1-2018 – Dear Experts, What are all the documents to be given under GST act, for the transportation of Rejected Materials (Part Quantity) to the original suppliers ? How the Tax portion is to be handled ?? How we have to show the said documents to be disclosed in GST returns ??? – Reply By CS SANJAY MALHOTRA – The Reply = Movement of rejected material will be under cover of DELIVERY CHALLAN. Su

= = = = = = = =

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

= = = = = = = =

Goods and Services Tax – GST – Dated:- 23-12-2017 – Q. For an under-construction flat where the transaction was initiated post 1st July, how do I confirm if the builder has revised the pricing accordingly to the ITC claimed? Ans. The builder needs to adjust his price (without taxes) to the extent of ITC available to him. Q. Whether civil contractor doing projects in various States requires separate registration for all states or a single registration at state of head office will suffice? Ans. A

= = = = = = = =

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

= = = = = = = =

Goods and Services Tax – Started By: – kamdev senapati – Dated:- 23-12-2017 Last Replied Date:- 25-12-2017 – Dear Experts,In some cases we have received short payment from customers due to short quantity/rate difference.These thing comes to notice after received the payment.Customers are not giving us any debit note.My Quarry is:-For accounting purpose shall we book the short payment under discount head….Please advise…. – Reply By Vamsi Krishna – The Reply = HiYou have to book the differenc

= = = = = = = =

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

= = = = = = = =

Goods and Services Tax – GST – Dated:- 23-12-2017 – New Delhi, Dec 22 (PTI) As many as 70 complaints have been filed with the Anti-Profiteering Authority, which deals with cases under the GST regime, the finance ministry said today. A National Anti-Profiteering Authority and a Standing Committee on anti-profiteering has been set up to examine complaints of not passing benefits to consumer under the Goods and Services Tax (GST), rolled out on July 1. In a written reply to the Lok Sabha, Minister

= = = = = = = =

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

= = = = = = = =

Goods and Services Tax – GST – By: – Srikantha RaoT – Dated:- 23-12-2017 Last Replied Date:- 10-9-2018 – Taxation of exports and imports has always been a topic of great interest and it is no different under the GST regime. Readers may be well aware of the fact that in the recent past, under Central Excise law, clearances of manufactured goods to merchant exporters and to 100% EOUs were exempted from duties on furnishing of CT 1 form and CT 3 form respectively. Apart from this, inter-state sale of goods to an exporter of goods had also been exempted from Central Sales Tax through the usage of Form H. This has now changed under GST as these forms have been done away with. Before we proceed further to discuss the benefits available on deemed exports and on supplies to ultimate exporters, it would be necessary to review the concept of export and import under GST along with certain changes in the Customs Act 1962 which have brought about a change in the manner in which supplies in the cou

= = = = = = = =

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

= = = = = = = =

to be within the same State to treat the supply as an intra-state supply. The supplier here would be the person actually supplying the goods (including his agent) as defined u/s 2(105) of Central Goods & Services Tax Act 2017. Equally important is the concept of zero rating under GST. This would mean supplies in question being zero rated (carrying zero rate of tax). Section 16(1) of IGST Act 2017 regards export of goods and supply of goods to SEZ Developers and SEZ units as zero-rated supplies. Credit of input tax used in relation to zero rated supplies are not denied going by Section 16(2) of the Act. More importantly, u/s 16(3) of the Act, the exporter would have the option of either claiming refund of unutilized input tax credit by exporting the goods under Letter of Undertaking without paying GST on outward supply for export or opt for payment of IGST on such export by utilizing credits in books and then claim refund of tax so paid on export (similar to old rebate on export op

= = = = = = = =

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

= = = = = = = =

tra-state supplies. Section 2(4) of the IGST Act 2017 makes a reference to customs area as understood under Customs Act 1962 in this regard. U/s 2(11) of the Customs Act 1962, customs area means the area of a customs station or a warehouse and includes any area in which imported goods or export goods are ordinarily kept before clearance by Customs Authorities. This term has been amended by The Taxation Laws (Amendment) Act 2017 to include a warehouse within its ambit with effect from 1st July 2017. The term warehouse under Section 2(43) of Customs Act 1962 would include a public warehouse (licensed u/s 57) as well as a private warehouse (licensed u/s 58). Readers may note here that the Supreme Court in N.K Bapna Vs Union of India (1992 (5) TMI 20 Supreme Court of India) had held a warehouse to be an extension of the customs area and that goods can be cleared for home consumption only after payment of customs duties and import cannot be said to be complete till then. The amendment with

= = = = = = = =

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

= = = = = = = =

arious States and Union Territories are as specified in First Schedule to the Constitution of India. This would be relevant in the context of Article 246 (3) and Article 245 dealing with legislative power and extent of law made by the States read in conjunction with Article 246A (1) dealing with GST. This generally would prevent a State from collecting tax on a supply which is outside its territory. States have also been specifically barred under Article 286 (1) from imposing a tax on supply of goods or services or both where such supply takes place outside the State or in the course of import into or export out of the territory of India. Determination of whether or not a supply is within State, would be made by Parliament (by law) going by Article 286 (2). The legal position regarding sale in the course of import for the purpose of Article 286 (1) of Constitution of India has been summarized well in JV Gokal & Co (Pvt.) Ltd. Vs Assistant Collector of Sales Tax (Inspection) (1960 (

= = = = = = = =

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

= = = = = = = =

stal state) over territorial waters in respect of taxing of supplies either based on location of supplier or place of supply being in such territorial waters. This would be relevant where goods either come into the State or move to a place in territorial waters from a supplier located within the State. With regard to goods coming into India or moving out of India, there are some judicial precedents which continue to be relevant in the context of GST. These assume significance if we were to consider the first proviso to Section 5 of IGST Act 2017 as per which the IGST on imported goods would be levied on the value of the article u/s 14 of Customs Act 1962 plus duty of customs levied u/s 12 of the said Act (Section 3(8) of Customs Tariff Act 1975) and at the point customs duty is levied u/s 12 of Customs Act 1962. Import In M/s Aban Loyd Chiles Offshore Ltd & Ors Vs Commissioner of Customs Mumbai (2017 (2) TMI 294 Supreme Court of India) the Supreme Court has confirmed that the term

= = = = = = = =

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

= = = = = = = =

reme Court has confirmed that goods kept in bonded warehouses and sold at duty free shops did not cross customs frontiers could not be subject to tax by any State as such sale was in the course of import or export of goods. Consequently, transaction was not liable to sales tax. More importantly, the Court confirmed the view that when any transaction takes place outside the customs frontiers of India, the transaction would be said to have taken place outside India. Though the transaction might take place within India but technically, looking to the provisions of Section 2(11) of the Customs Act 1962 and Article 286 of the Constitution, the said transaction would be said to have taken place outside India. This verdict will continue to be relevant in the context of GST as far as High Sea Sales are concerned. The question of levying customs duty along with IGST should arise only on actual import of goods and in the hands of the buyer rather than the High Sea Seller. This matter has also be

= = = = = = = =

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

= = = = = = = =

benefits. The phrase taking out of India to a place outside India would also mean a place in high seas. It is beyond the territorial waters of India going by the confirmation of Supreme Court in Sun Industries Vs Collector of Customs Calcutta (1988 (4) TMI 49 Supreme Court of India). Going by the decision of the Court in this case, we can have export of goods once goods cross the territorial waters of India and title on goods also passes to customer from the seller. The timing of transfer of ownership would be critical and Incoterms Rules published by International Chamber of Commerce would prove determinative in this regard. We can have a scenario where transfer of ownership of goods from seller to buyer occurs prior to goods leaving India (including territorial waters) and where the buyer happens to be registered under GST. This scenario has now been covered by Notifications 41/2017 Integrated Tax (Rate) dated 23rd October 2017 and 40/2017 Central Tax (Rate) Dated 23rd October 2017 w

= = = = = = = =

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

= = = = = = = =

per Bill of Lading as well as name of recipient appearing on invoice of supplier in addition to any clause in agreement/contract indicating transfer of ownership prior to goods being transferred to foreign buyer in order to determine identity of exporter going by the confirmation of the Supreme Court in CT Ltd. & Another Vs CTO & Others (1996 (10) TMI 394 (Supreme Court of India)). Readers will also have to note that a scenario where constructive delivery is given to buyer would not satisfy the definition of export in the absence of physical movement of goods out of India. The place of supply would therefore be based on Section 10(1)(c) of IGST Act 2017. Supply of goods by a registered person to 100% EOU or against Advance Authorisation or EPCG Authorisation has been notified as deemed export vide Notification 48/2017 Central Tax Dated 18th October 2017 issued u/s 147 of the Act. The supplier of deemed exports would be entitled to refund on getting the following details (Notif

= = = = = = = =

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

= = = = = = = =

17 in order to facilitate refunds and readers are advised to go through the procedural requirements. This would be in the context of procurements within India as imports by EOUs have been exempted from basic customs duty along with IGST and compensation cess vide Notification 78/2017 Customs dated 13th October 2017 amending Notification 52/2003 Customs. The amendment would apply to all possible procurements under the old Notification 52/2003 Customs by 100% EOUs. Exporters would be entitled to claim duty drawback under revised rates applicable with effect from 1st October 2017 under Notification 89/2017 Customs (NT). Readers are advised to follow Circular 38/2017 Customs Dated 22.09.2017 which clarifies the drawback to exclude IGST component on import. Readers could reach the author at srikantharaot@gmail.com or 9845273812 in case of need. – Reply By ANITA BHADRA – The Reply = All the relevant notifications and provisions are well compiled – Reply By JAIPRAKASH RUIA – The Reply = Some

= = = = = = = =

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

= = = = = = = =

with Haryana address but providing the GST of TN in the Bills of Entry of Customs.. As per Customs it is legal as the importer has option to avail IGST at any place of their registration. Now my question is, with this BOE, the goods are transported from Customs location with EWAY Bill generated from TN GST. Whether this is valid and acceptable in GST?2. At the time of import, the Importer is filing the BOE with Haryana address but providing the GST of Haryana only in the Bills of Entry of Customs.. As per Customs it is legal as the importer has option to avail IGST at any place of their registration. Now my question is, with this BOE, the goods are transported from Customs location with EWAY Bill generated from TN GST. Whether this is valid and acceptable in GST? In this case the document sent with vehicle are BOE & EWB. 3. Under situation 2 above, whether the importer can raise invoice from Haryana to their Chennai WH and move the shipment directly wtih EWB? (Earlier it is known a

= = = = = = = =

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

= = = = = = = =

Goods and Services Tax – GST – By: – Dr. Sanjiv Agarwal – Dated:- 23-12-2017 – There are specific provisions under GST laws on Scrutiny and Audit, both of which are different. There are fundamental differences in the three terms – reconciliation, scrutiny and audit. The scope of audit would include the first two which aid in conduct of audit. The purpose of preliminary scrutiny of returns includes: ensuring the completeness of the information furnished in the return, arithmetic correctness of the amount computed as tax and its timely payment, timely submission of the return and identification of non-filers and stop-filers. Scrutiny of documents viz. ledger accounts, returns of tax, compliances etc is nothing but a strong compliance verification procedure or mechanism. For example, in case of a return, the purpose of detailed scrutiny of returns is to ensure the correctness of the assessment made by the assessee. Such scrutiny plan only supplement the audit programme. It is expected th

= = = = = = = =

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

= = = = = = = =

re found acceptable, then, no further action shall be taken against the assessee but where no explanation is furnished or the explanation furnished is not satisfactory within thirty days of being informed by the proper officer, the proper officer may initiate appropriate action against such taxable person. Notice of scrutiny of returns As per sub rule (1) of rule 99 of the GST Rules, 2017 where any return furnished by a registered person is selected for scrutiny, the proper officer shall scrutinize the same in accordance with the provisions of Section 61 with reference to the information available with him, and in case of any discrepancy, he shall issue a notice to the said person in FORM GST ASMT-10, informing him of such discrepancy and seeking his explanation thereto within such time, not exceeding thirty days from the date of service of the notice or such further period as may be permitted by him and also, where possible, quantifying the amount of tax, interest and any other amount

= = = = = = = =

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

= = = = = = = =

all be to verify the correction of return; manner of scrutiny of return as prescribed under Rule 99 proper officer shall inform the taxable person (assessee) about the discrepancies noticed during the course of scrutiny; by such intimation, explanation is sought from the assessee; where explanation furnished by assessee is found acceptable, no further action shall be required and assessee be informed accordingly. Manner of dealing with discrepancies As per rule 99 of the GST Rules, 2017, discrepancies shall be dealt with as under: (a) The registered person may accept the discrepancy mentioned in the notice issued under sub-rule (1), and pay the tax, interest and any other amount arising from such discrepancy and inform the same or furnish an explanation for the discrepancy in FORM GST ASMT-11 to the proper officer. (b) Where the explanation furnished by the registered person or the information submitted under sub-rule (2) is found to be acceptable, the proper officer shall inform him a

= = = = = = = =

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

= = = = = = = =

Goods and Services Tax – Started By: – Ramprasad Jangir – Dated:- 23-12-2017 Last Replied Date:- 24-12-2017 – what input 40%/60% is given by gst on 30.6.17 stock ,on value of stock as on 30.6.17 or output gst from sales of existing stock – Reply By KASTURI SETHI – The Reply = If you have not invoices but have stock, Govt. will not allow full credit. Records will be examined before allowing ITC finally. This 40/60 % both are povisional. – Reply By CS SANJAY MALHOTRA – The Reply = output GST. – R

= = = = = = = =

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

= = = = = = = =

Goods and Services Tax – Started By: – Preeti Sharma – Dated:- 22-12-2017 Last Replied Date:- 25-12-2017 – Hello Experts, We paid GST For Oct Month on Nov 22 with late fee but did not pay interest on late payment. What are the consequences of non payment of interest on late payment of GST. Can we pay now that interest? If we pay now, then it shall be levied @ 18% p.a. for only 2 days? or more than that as there is a delay in paying Interest. – Reply By KASTURI SETHI – The Reply = You can pay in

= = = = = = = =

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

= = = = = = = =

Goods and Services Tax – Started By: – shivani sharma – Dated:- 22-12-2017 Last Replied Date:- 22-12-2017 – Is this correct for registering for individual GST number. I don't have pan card for company, please let me know what I should add in legal business name. – Reply By KASTURI SETHI – The Reply = You should fill your name against the column, Legal Name of Business . Trade name is for name of firm. – Reply By CS SANJAY MALHOTRA – The Reply = Agree with Sh. Kasturi ji. – Reply By shivani

= = = = = = = =

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

= = = = = = = =

Goods and Services Tax – Started By: – Prakash Gupta – Dated:- 22-12-2017 Last Replied Date:- 26-12-2017 – Dear Expert,Need your help on below mentioned issued under GST. Brief facts and query is as under:The company is in business of project construction since year 2015. It has received mobilization advance of Rs. say 10 Crore in January 2017 ( before GST regime) and on which it paid service tax as per the applicable rate.Now under GST regime the company will raise invoice and willing to set off its GST liability with earlier service tax, which has been paid advance received.With the above mentioned background, my query is as under: whether service tax paid on advance received from clients can be set off with GST liability ? if yes, then

= = = = = = = =

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

= = = = = = = =

Prakash Gupta – The Reply = Thank You Sir,For your reply. – Reply By Vamsi Krishna – The Reply = Agree with Kasthuri sir, Would like to add further if the contract is a EPC contract where you would just have paid Mobilisation advance along with Service tax on that. And if the actual services are started and billing started in GST regime, your contractor has to file Tran-1 under section 142(11)(c) claiming the ST paid to the dept and should return back the same to you. Since original supply (services) taken place in GST regime, he will raise GST bills and you will get full credit of same. Pls make sure that your contractor filed Tran-1 under Sec. 142(11)(c) and refunded the ST received through Tran-1 to you. And on receipt of that, you shoul

= = = = = = = =

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

= = = = = = = =

total work as Advance for site mobilisation and adjusts the advance each Running Bills (RA Bills) which will be normally for 3-4 years. – Reply By KASTURI SETHI – The Reply = O.K. Sir. But here fate is to be decided by the POTRs as per latest FAQs. – Reply By Prakash Gupta – The Reply = Dear Experts, Thanks for your response. Mentioning herewith a link, containing an article and discussion of this forum. Need your comment on below queries : 1. Can we treat mobilization advance under section 142(11)(b) of the CGST Act or It is need to show u/s 142(11)(C) only, as it is construction service, even we have not paid any VAT at the time of receipt of the Advance. 2. If answer to query 1 is Yes, then how i need to show mobilization advance in GST

= = = = = = = =

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

= = = = = = = =

Flex Gst billing HSN Code – Companies Law – Started By: – dipak bhosale – Dated:- 22-12-2017 – if any one looking for flex gst billing software follow this linkhttps://www.youtube.com/watch?v=uy2WEBNZ

= = = = = = = =

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

= = = = = = = =

Goods and Services Tax – Extension of time limit for intimation of details of stock held on the date preceding the date from which the option for composition levy is exercised in FORM GST CMP-03 – CGST – Circulars / Ordes – TMI Updates – Highlights

= = = = = = = =

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

= = = = = = = =

Goods and Services Tax – Manual filing and processing of refund claims on account of inverted duty structure, deemed exports and excess balance in electronic cash ledger- Reg. – CGST – Circulars / Ordes – TMI Updates – Highlights

= = = = = = = =

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

= = = = = = = =

Goods and Services Tax – Manual filing of applications for Advance Ruling and appeals before Appellate Authority for Advance Ruling – reg – CGST – Circulars / Ordes – TMI Updates – Highlights

= = = = = = = =

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

= = = = = = = =

Goods and Services Tax – The principal and the auctioneer of tea, coffee, rubber etc. are required to declare warehouses where such goods are stored as their additional place of business. The buyer is

= = = = = = = =

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

= = = = = = = =

Goods and Services Tax – In case of supply by artists through galleries, there is no consideration flowing from the gallery to the artist when the art works are sent to the gallery for exhibition and

= = = = = = = =

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

= = = = = = = =

Goods and Services Tax – Started By: – satyanarayana korraprolu – Dated:- 22-12-2017 Last Replied Date:- 25-12-2017 – Sir, I was updated Aggregate Turnover in the preceeding financial year ₹ 131445297.00 in GSTR-1 July 2017. (T/O F.Y 2016-17 + 2017-18 Q1=131445297.00) Actually Previous F.Y 2016-17 Turnover is ₹ 103631746.00 Kindly give suggesstions and recetification process. Any notices will be received from GST & IT department's .?? – Reply By YAGAY AND SUN – The Reply = In next return you can rectified it. – Reply By ashok amin – The Reply = Dear Sir,I think it is one time entry to be done i.e. in the month of July 2017 afterwards it gets blocked. Kindly highlight on this accordingly.Regards, – Reply By KASTURI SETHI

= = = = = = = =

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

= = = = = = = =

Goods and Services Tax – GST – By: – Ravi Kumar Somani – Dated:- 22-12-2017 – Transitional provisions have been prescribed in the GST law which provides tax treatment for transitional matters like spill over transactions, transitional credits etc. It allows existing taxpayers to transfer the input tax credit available as closing balance in the existing tax returns to the GST returns. Therefore, assesses were able to transfer the closing balance of credit in respect of Central Excise duty, Service Tax, Local VAT etc. as the opening credit balance in the GST returns. The issue has been faced by the taxpayers and doubts have arisen upon transfer of credit available as closing balance in respect of Krishi Kalyan Cess, Education cess & Secondary and Higher education cess etc. to the GST regime. Different interpretations have been placed and as usual revenue authorities are drawing interpretation as beneficial to them and accordingly transfer of such credits is being denied and assesses

= = = = = = = =

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

= = = = = = = =

. Similarly, by virtue of this rule, credit was also allowed under the earlier law on Education cess and Secondary & Higher Education cess. Further, there is condition that the credit of KKC can be utilised only against the liability of KKC arising on provision of output service, similarly for education cess and Secondary & Higher Education cess. Above definition of CENVAT Credit indicates that the KKC, EC and SHEC are included within ambit of definition of CENVAT Credit and therefore credit in respect of the same was allowed under the earlier law. Needless to say, that the KKC is/was not available to manufacturer as they did not have any liability to pay KKC. It shall be imperative to discuss at this juncture that one of the restrictions placed in section 140(1) is that the transfer of credit shall not be available if the said amount of credit is not admissible as input tax credit in the GST law. It is pertinent to note that availability of GST credit is discussed elaborately

= = = = = = = =

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

= = = = = = = =

here is in regard to Rule 117 of the CGST Rules which provide the mechanism for carry forward of credit. Sub Rule 1 of the said Rule read as under: Every registered person entitled to take credit of input tax under section 140 shall, within ninety days of the appointed day, submit a declaration electronically in FORM GST TRAN-1, duly signed, on the common portal specifying therein, separately, the amount of eligible duties and taxes as defined in explanation to section 140 to which he is entitled under the provisions of the said section: The opening part of the rule provides that it is applicable for carry forward of credits provided under entire section 140. (There are many sub-sections within section 140 which allows for carry forward of credit one of which is sub section 1 as discussed above). However, later on the scope has been confined to carry forward of only eligible duties and taxes as defined in the explanation to section 140. Eligible duty has been defined in the explanation

= = = = = = = =

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

= = = = = = = =

de the Statutory Provisions of the Law. In case of any discrepancy between two, the section shall prevail over rules. When the section 140 (1) clearly provides that the CENVAT Credit (as defined in the Cenvat Credit Rules) as per last return filed before GST can be carried forward under GST Law, the Rule cannot curtail the rights by confining it to merely service tax portion and excluding the carry forward of KKC. Based on above, we are of the considered view that the credit of KKC taken in last return filed for the period upto 30th June should be allowed to be carried forward in the GST regime. It is equally important to note that the credit cannot be carried for KKC in respect of services which have been received after appointed date in respect of which tax was paid by the supplier prior to the GST Law as such cases are covered by section 140 (5) of the CGST Act. Hence, KKC credit on services in transit as on 30th June, 2017 cannot be allowed to be carried forward. At the same point

= = = = = = = =

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

= = = = = = = =

that the right of the company in case of favourable decision is protected and at the same time, there will not be any adverse consequences as to the interest or penalty. Needless to mention that the credit shall not be available for utilisation during the period reversed under protest. The fact of availment of credit and its reversal under protest should be intimated to department along with basis thereof. Option 3: Avail the credit and utilise against output liability of GST. However, this should be done under the intimation to department. It is relevant to note that this option is likely to invite the litigation by department which has to be appropriately addressed. Conclusion: Once the transition forms are filed then there will not be any recourse available in the hands of assessee to avail these credits, therefore any decision in this regard must be taken immediately followed by a suitable and timely action. CA Madhukar N Hiregange CA Ravi Kumar Somani (Article is written on 21.12.

= = = = = = = =

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

= = = = = = = =

GST – States – CT/GST-14/2017/076 (23/2017-GST) – Dated:- 22-12-2017 – GOVERNMENT OF ASSAM ORDERS BY THE GOVERNOR OFFICE OF THE COMMISSIONER OF STATE TAX :: ASSAM :: KAR BHAWAN NOTIFICATION No. 23/2017-GST The 22nd December, 2017 No. CT/GST-14/2017/076.-ln pursuance of clause (b) of sub-rule (1) of rule 40 of the Assam Goods and Services Tax Rules, 2017 and in supersession of notification No, 14/2017-GST, dated the 13th October, 2017, published in the Assam Gazette, Extraordinary, vide number 5

= = = = = = = =

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

= = = = = = = =

GST – States – CT/GST-14/2017/077 (23/2017-GST) – Dated:- 22-12-2017 – GOVERNMENT OF ASSAM ORDERS BY THE GOVERNOR OFFICE OF THE COMMISSIONER OF STATE TAX :: ASSAM :: KAR BHAWAN NOTIFICATION No. 23/2017-GST The 22nd December, 2017 No.CT/GST-14/2017/077.- 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) (hereinafter referred to as the said Act ) and in supersession of notification No. 20/2017-GST, dat

= = = = = = = =

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

= = = = = = = =

GST – States – 11/2017-GST – Dated:- 22-12-2017 – ORDER By the Commissioner of State Tax, Gujarat State, Ahmedabad Dated the 22nd December, 2017. Order No. 11/2017-GST No. GSL/RULE-4(3)/B.13 Subject: Extension of lime limit for intimation of details of stock held on the date preceding the date from which the option for composition levy is exercised in FORM GST CMP-03 In exercise of the powers conferred by sub-rule (4) of rule 3 of the Gujarat Goods and Services Tax Rules, 2017 read with section

= = = = = = = =

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

= = = = = = = =

GST – States – 42/2017 – Dated:- 22-12-2017 – GOVERNMENT OF TELANGANA COMMERCIAL TAXES DEPARTMENT TGST Notification No. 42/2017 CCT s Ref No. A(1)/148/2017 Dt. 22-12-2017 Sub:- Extension of time limit for furnishing FORM GSTR-5. In exercise of the powers conferred by sub-section (6) of Section 39 read with section 168 of the Telangana Goods and Services Tax Act, 2017 (23 of 2017) (hereinafter referred to as the said Act) and in supersession of Notification No. 35/2017, dated the 22nd November,

= = = = = = = =

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

= = = = = = = =