Goods and Services Tax

GST – States – F.No. 3240/CTD/GST/2017/05 – Dated:- 17-10-2017 – GOVERNMENT OF PUDUCHERRY COMMERCIAL TAXES DEPARTMENT F.No. 3240/CTD/GST/2017/5. Puducherry, dated 17th October 2017. NOTIFICATION In pursuance of section 168 of the Puducherry Goods and Services Tax Act, 2017 (Act No. 6 of 2017) (hereafter referred to as the said Act) and clause (b) of sub-rule (1) of rule 40 of the Puducherry Goods and Services Tax Rules, 2017, the Commissioner of State Tax, Puducherry, hereby extends the time li

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GST – States – G.O. Ms. No. 38/CT/2017-18 – Dated:- 17-10-2017 – GOVERNMENT OF PUDUCHERRY COMMERCIAL TAXES SECRETARIAT (G.O. Ms. No. 38/CT/2017-18, Puducherry, dated 17th October 2017) NOTIFICATION In exercise of the powers conferred by section 164 of the Puducherry Goods and Services Tax Act, 2017 (Act No. 6 of 2017), the Lieutenant-Governor, Puducherry, hereby makes the following rules further to amend the Puducherry Goods and Services Tax Rules, 2017, namely:- 1. (1) These rules may be called the Puducherry Goods and Services Tax (Eighth Amendment) Rules, 2017. (2) These rules shall be deemed to have come into force from the 29th day of September, 2017. 2. In the Puducherry Goods and Services Tax Rules, 2017,- (i) in rule 24, in sub-rul

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GST – States – G.O. (Ms) No. 143 – Dated:- 17-10-2017 – COMMERCIAL TAXES AND REGISTRATION (B1) DEPARTMENT G.O. (Ms) No. 143 Dated: 17.10.2017 Purattasi- 31 Thiruvalluvar Aandu, 2048 NOTIFICATION In exercise of the powers conferred by clause (g) of sub-rule (2) of rule 89 of the Tamil Nadu Goods and Services Tax Act, Rules, 2017 read with notification No. ____published in Part II-Section 2 of the Tamil Nadu Government Gazette, Extraordinary, dated 18th October, 2017, the Governor of Tamil Nadu, hereby notifies the following, as detailed in column (2) of the Table below, as evidences which are required to be produced by the supplier of deemed export supplies for claiming refund, namely:- Table Sl.No. Evidence 1 2 1. Acknowledgment by the jur

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GST – States – G.O. (Ms) No. 142 – Dated:- 17-10-2017 – COMMERCIAL TAXES AND REGISTRATION (B1) DEPARTMENT G.O. (Ms) No. 142 Dated: 17.10.2017 Purattasi- 31 Thiruvalluvar Aandu, 2048 NOTIFICATION In exercise of the powers conferred by section 147 of the Tamil Nadu Goods and Services Tax Act, 2017 (Tamil Nadu Act 19 of 2017), the Governor of Tamil Nadu, on the recommendations of the Council, hereby notifies the supplies of goods listed in column (2) of the Table below as deemed exports, namely:- Table S.No. Description of supply (1) (2) 1. Supply of goods by a registered person against Advance Authorisation 2. Supply of capital goods by a registered person against Export Promotion Capital Goods Authorisation 3. Supply of goods by a registere

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GST – States – G.O. (Ms) No. 140 – Dated:- 17-10-2017 – COMMERCIAL TAXES AND REGISTRATION (B1) DEPARTMENT G.O. (Ms) No. 140 Dated: 17.10.2017 Purattasi- 31 Thiruvalluvar Aandu, 2048 NOTIFICATION In exercise of the powers conferred by sub-section (1) of section 9 of the Tamil Nadu Goods and Services Tax Act, 2017 (Tamil Nadu Act 19 of 2017), the Governor of Tamil Nadu, on the recommendations of the Council, hereby notifies the state tax rate of 2.5 per cent on intra-State supplies of goods, the description of which is specified in column (3) of the Table below, falling under the tariff item, sub-heading, heading or Chapter, as the case may be, as specified in the corresponding entry in column (2), subject to the condition specified in colum

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or the State Government concerned, within a period of five months from the date of supply of such goods or within such further period as the jurisdictional commissioner of the Central tax or jurisdictional commissioner of the State tax, as the case maybe, may allow in this regard. Explanation. – (1) In this notification, tariff item , sub-heading heading and Chapter shall mean respectively a tariff item, heading, sub-heading and Chapter as specified in the First Schedule to the Customs Tariff Act, 1975 (51 of 1975). (2) The rules for the interpretation of the First Schedule to the said Customs Tariff Act, 1975, including the Section and Chapter Notes and the General Explanatory Notes of the First Schedule shall, so far as may be, apply to

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2017 (12) TMI 542 – CESTAT NEW DELHI – TMI – Clandestine removal – shortage of stock – whether the appellant was engaged in the manufacture of M.S. Billets & M.S. Bars duly have rightly been levied on apparent shortage of stock? – validity of SCN – Held that: – from a copy of the Panchnama on record that there is no record of weighment, forming part of the Panchnama. Thus, the stock verification of the finished goods have been done by way of eye estimation only. Further there is variation of 10%, which is normal in the facts and circumstances of the case, where the stock verification of the finished goods has been done by way of eye estimation – SCN is vague and presumptive – appeal allowed – decided in favor of appellant. – E/51556/2017-EX[SM] – A/58155/2017-SM[BR] – Dated:- 17-10-2017 – Mr. Anil Choudhary, Member (Judicial) Shri R. K. Hasija, Advocate, for Appellant Shri G. R. Singh, (AR), for Respondent ORDER Per: Anil Choudhary The issue in this appeal is, whether (the appellant w

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verification of goods were recorded. 3. The statement of Shri Sarjeet Singh Yadav, Factory Manager & Authorized Signatory was recorded under Section 14 of the Central Excise Act, 1944, who inter-alia stated that he has working since 1996 and looking after the work related to Excise, Sales Tax & Labour Departments. In his presence and two independent witness, visiting officers conducted physical stock verification of TMT Bars lying in the unit and on verification stock of TMT Bars was found short by 79.00 MT. He is in full agreement with the manner of stock verification as well as stock verification report their unit manufactures TMT Bars ranging of size from 8mm to 32mm which carried different weights. They have not conducted verification of their stocks since long which has resulted in shortage in stock. Having agreed with the shortage of stock, they are going to deposit the Central Excise duty amounting to ₹ 3,19,784/- which was deposited by the assessee and a copy of e

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Authority confirmed the proposed demand and further appropriated to impose equal amount of penalty under Section 11AC of the Central Excise Act, 1944. 5. Being aggrieved by the said order, the appellant preferred appeal before ld. Commissioner (Appeals), who was pleased to uphold the order of the Assistant Commissioner dismissing the appeal. Being aggrieved by the said order, the appellant preferred appeal before this Tribunal. 6. Heard the ld. Counsel for the appellant who has contended that the stock taking was conducted in a casual manner by way of eye estimation and no actual weighment was done. There is no detail of weighment annexed to the Panchnama. There is no evidence of clandestine clearance of manufacture. Further, the whole case of Revenue is based on Panchnama and the statement of Shri Sarjeet Singh Yadav – Factory Manager. Thus, under the facts and circumstances, the demand raised is not sustainable and fit to be set aside. Therefore, the whole Show Cause Notice is presum

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GST – States – 39/2017 – Dated:- 17-10-2017 – FINANCE SECRETARIAT NOTIFICATION (39/2017) No. FD 48 CSL 2017, Bengaluru, dated: 17.10.2017. In exercise of the powers conferred by sub-section (1) of section 9 of the Karnataka Goods and Services Tax Act, 2017 (Karnataka Act 27 of 2017), the Government of Karnataka, on the recommendations of the Council, hereby notifies the State tax rate of 2.5 per cent on intra-State supplies of goods, the description of which is specified in column (3) of the Table below, falling under the tariff item, sub-heading, heading or Chapter, as the case may be, as specified in the corresponding entry in column (2), subject to the condition specified in column (4) of the Table below, namely:- Table Sl.No. Tariff it

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ve months from the date of supply of such goods or within such further period as the jurisdictional commissioner of the Central tax or jurisdictional commissioner of the State tax, as the case maybe, may allow in this regard. Explanation. – (1) In this notification, tariff item , sub-heading heading and Chapter shall mean respectively a tariff item, heading, sub-heading and Chapter as specified in the First Schedule to the Customs Tariff Act, 1975 (Central Act 51 of 1975). (2) The rules for the interpretation of the First Schedule to the said Customs Tariff Act, 1975, including the Section and Chapter Notes and the General Explanatory Notes of the First Schedule shall, so far as may be, apply to the interpretation of this notification. 2. T

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GST – States – 04-F/2017 – Dated:- 17-10-2017 – FINANCE SECRETARIAT NOTIFICATION (04-F/2017) No. FD 47 CSL 2017, Bengaluru, dated: 17-10-2017. In exercise of the powers conferred by section 164 of the Karnataka Goods and Services Tax Act, 2017 (Karnataka Act 27 of 2017), on the recommendations of the Council, Government of Karnataka hereby makes the following rules further to amend the Karnataka Goods and Services Tax Rules, 2017, namely: RULES 1. Title and commencement.- (1) These rules may be called the Karnataka Goods and Services Tax (Sixth Amendment) Rules, 2017. (2) Save as otherwise provided in these rules, they shall come into force on the date of their publication in the Official Gazette. 2. Amendment of rule 24.- In the Karnataka

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substituted; 5. Amendment of rule 120.- In rule 120 of the said rules, for the words ninety days of the appointed day , the words and figures the period specified in rule 117 or such further period as extended by the Commissioner shall be substituted; 6. Amendment of FORM GST REG-29,- (1) for the heading of the said rules, APPLICATION FOR CANCELATION OF PROVISIONAL REGISTRATION , the heading, APPLICATION FOR CANCELATION OF REGISTRATION OF MIGRATED TAXPAYERS shall be substituted; (2) under sub-heading PART-A, against item (i), for the word and letters Provisional ID , the letters GSTIN shall be substituted. By order and in the name of the Governor of Karnataka, K.S. PADMAVATHI Under Secretary to Government, Finance Department (C.T.-1). – Not

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GST – States – Va Kar/GST/07/2017-S.O. No. 096 – Dated:- 17-10-2017 – COMMERCIAL TAXES DEPARTMENT NOTIFICATION 17th October, 2017 S.O. No. 96 Dated 17th October, 2017 – In exercise of the powers conferred by section 164 of the Jharkhand Goods and Services Tax Act, 2017 (12 of 2017), the State Government hereby makes the following rules further to amend the Jharkhand Goods and Services Tax Rules, 2017, namely:- 1 These rules may be called the Jharkhand Goods and Services Tax (Eighth Amendment) Rules, 2017. 2. In the Jharkhand Goods and Services Tax Rules, 2017, – (i) in rule 24, in sub-rule (4), for the figures, letters and word, 30th September , the figures, letters and word 31st October shall be substituted; (ii) in rule 118, for the wor

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Goods and Services Tax – Started By: – Sivakumar Palanisamy – Dated:- 16-10-2017 Last Replied Date:- 18-10-2017 – Dear sir/madam,This is sivakumar.i am starting very small business with GST registered. I am going to buy some furniture and computers for my business. I don't have enough knowledge about GST. so could you please explain me that am I allowed to get tax revers whichever I am going to pay to the vendor. Because my business is not yet open but works are under process. If you don't mind can anyone send a chart of the products that we can revers the tax. Thanks & Regards Sivakumar – Reply By MARIAPPAN GOVINDARAJAN – The Reply = You say you have not yet started. Your annual transactions will not cross ₹ 20 lakhs. So

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e about the tax reverse but my auditor told me that there is some procedure to reclaim the tax which we paid to third party vendor. Finally I am confused and I did not learn anything from your reply. You are a experience person I hope and you should have asked different way if you are not understanding my message. Anyway once again thank you for your reply. – Reply By MARIAPPAN GOVINDARAJAN – The Reply = There are some people registering voluntarily with GST. Your auditor is correct. But your version in this site is confusing. Your auditor says about taking input tax credit. In reverse charge system you have to pay tax on the supply received from the unregistered dealer which is kept abeyance till 31.03.2018. Since your auditor has advised

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GST – GST Law and Procedure – 035 – Chapter Thirty Five Refund of Integrated Tax paid on account of zero rated supplies Under GST, Exports and supplies to SEZ are zero rated as per section 16 of the IGST Act, 2017. By zero rating it is meant that the entire supply chain of a particular zero rated supply is tax free i.e. there is no burden of tax either on the input side or on output side. This is in contrast with exempted supplies, where only output is exempted from tax but tax is levied on the input side. The essence of zero rating is to make Indian goods and services competitive in the international market by ensuring that taxes do not get added to the cost of exports. The objective of zero rating of exports and supplies to SEZ is sought to be achieved through the provision contained in Section 16(3) of the IGST Act, 2017, which mandates that a registered person making a zero rated supply is eligible to claim refund in accordance with the provisions of section 54 of the CGST Act, 20

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n GST RFD-01 is not applicable in this case. There is no need for filing a separate refund claim as the shipping bill filed by the exporter is itself treated as a refund claim. As per rule 96 of the CGST Rules, 2017, the shipping bill filed by an exporter shall be deemed to be an application for refund of integrated tax paid on the goods exported out of India and such application shall be deemed to have been filed only when:- (a) the person in charge of the conveyance carrying the export goods duly files an export manifest or an export report covering the number and the date of shipping bills or bills of export; and (b) the applicant has furnished a valid return in FORM GSTR-3 or FORM GSTR-3B, as the case may be. Thus, once the shipping bill and export general manifest (EGM) is filed and a valid return is filed, the application for refund shall be considered to have been filed and refund shall be processed by the department. Since the system of filing of return in FORM GSTR3 has not st

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e refund of IGST paid on export of goods is processed and disbursed by Customs. For processing such refund, GST system transmits invoice level data of Table 6A in GSTR 1 subject to the following validations: – 1. GSTR-3B is filed for the corresponding period, with admitted tax liability under Table 3.1(b); 2. Export invoices are submitted in GSTR-1/Table 6A and have correct shipping bill number, shipping bill date and port code; 3. The admitted tax liability of IGST under table 3.1(b) of GSTR-3B, is equal to, or greater than, the IGST amount claimed to have been paid under Table 6A of GSTR-1 of the corresponding period. It may be noted that Rule 96(9) has been inserted, w.e.f 23.10.2017, in CGST Rules, 2017 vide Notification no. 75/2017-Central Tax dated 29.12.2017 so as to provide that the refund of integrated tax paid on export of goods or services is not permitted to such persons who have received supplies on which the supplier has availed the benefit of Notification no. 48/2017-Cen

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iled by the – (a) supplier of goods after such goods have been admitted in full in the Special Economic Zone for authorised operations, as endorsed by the specified officer of the Zone; (b) supplier of services along with such evidence regarding receipt of services for authorised operations as endorsed by the specified officer of the Zone. Thus, proof of receipt of goods or services as evidenced by the specified officer of the zone is a pre-requisite for filing of refund claim by the DTA supplier. The claim for refund when made for supplies made to SEZ unit/Developer has to be filed along with the following documents: 1. a statement containing the number and date of invoices as provided in rule 46 along with the evidence regarding the endorsement specified in the second proviso to rule 89(1) in the case of the supply of goods made to a Special Economic Zone unit or a Special Economic Zone developer; 2. a statement containing the number and date of invoices, the evidence regarding the e

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paid on zero-rated supply of goods to a Special Economic Zone developer or a Special Economic Zone unit or in case of zero-rated supply of services is required to be filed in FORM GST RFD-01A (as notified in the CGST Rules, 2017 vide Notification no. 55/2017-Central Tax dated 15.11.2017) by the supplier on the common portal and a print out of the said form shall be submitted before the jurisdictional proper officer along with all necessary documentary evidences as applicable (as per the details in statement 2 or 4 of Annexure to FORM GST RFD – 01), within the time stipulated for filing of such refund under the CGST Act, 2017. Refund amount to be sanctioned by respective authorities Para 2.5 of Circular no. 17/17/2017-GST dated 15.11.2017 may be referred to in order to ascertain the jurisdictional proper officer to whom the manual application for refund is to be submitted. Where any amount claimed as refund is rejected under rule 92 of the CGST Rules, 2017, either fully or partly, the a

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CGST Rules, 2017 for the sanction of refund are adhered to. Special Procedure to facilitate smooth refund of Central Tax and State Tax In order to facilitate sanction of refund amount of central tax and State tax by the respective tax authorities, it has been decided that both the Central and State Tax authority shall nominate nodal officer(s) for the purpose of liasioning through a dedicated e-mail id. Where the amount of central tax and State tax refund is ordered to be sanctioned provisionally by the Central tax authority and a sanction order is passed in accordance with the provisions of rule 91(2) of the CGST Rules, 2017, the Central tax authority shall communicate the same, through the nodal officer, to the State tax authority for making payment of the sanctioned refund amount in relation to State tax and vice versa. The aforesaid communication shall primarily be made through e-mail attaching the scanned copies of the sanction order [FORM GST RFD-04 and FORM GST RFD-06], the appl

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ate Tax Authority till the administrative mechanism for assigning of taxpayers to respective authority is implemented. However, in the latter case, an undertaking is required to be submitted stating that the claim for sanction of refund has been made to only one of the authorities. It is reiterated that the Central Tax officers shall facilitate the processing of the refund claims of all registered persons whether or not such person was registered with the Central Government in the earlier regime Modalities/Records in respect of manual refund claims The Circular No.17/17/2017-GST dated 15.11.2017 and circular no.24/24/2017-GST dated 21.12.2017 lays down the modalities for maintenance of records in respect of such manual refund claims, which needs to be adhered to scrupulously. The time limits laid down in the Act need to be followed and the prescribed forms need to be generated manually for processing of such refund claims. Grant of Provisional Refund The above category of persons makin

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GST – GST Law and Procedure – 036 – Chapter Thirty Six Refund of unutilised Input Tax Credit (ITC) Accumulation of Input Tax Credit happens when the tax paid on inputs is more than the output tax liability. Such accumulation will have to be carried over to the next financial year till such time as it can be utilised by the registered person for payment of output tax liability. However, the GST Law permits refund of unutilised ITC in two scenarios, namely if such credit accumulation is on account of zero rated supplies or on account of inverted duty structure, subject to certain exceptions. As per Section 54(3) of the CGST Act, 2017, a registered person may claim refund of unutilised input tax credit at the end of any tax period. A tax period is the period for which return is required to be furnished. Refund of unutilised input tax credit is allowed only in following two cases: a) Zero rated supplies made without payment of tax: As per Section 16(3) of the IGST Act, 2017, a registered

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as 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 services or both as may be notified by the Government on the recommendations of the Council. This would include even those cases where supply has been made to merchant exporters under Notification no. 40/2017- Central Tax (Rate) dated 23.10.2017 or notification No. 41/2017-Integrated Tax (Rate) dated 23.10.2017 or both. In such cases also, refund can be applied under Section 54 of the CGST Act, 2017 read with Rule 89 of the CGST Rules, 2017. It should be noted that no refund of unutilised input tax credit is allowed in cases where the goods exported out of India are subjected to export duty. Further, no refund of input tax credit is allowed, if the supplier of goods or services or both avails of drawback in respect of central tax or claims refund of the integrated tax paid on such supplies. Refund of ITC on

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the incidence of such tax and interest had not been passed on to any other person, it shall not be necessary for the applicant to furnish any documentary and other evidences but he may file a declaration, based on the documentary or other evidences available with him. It has also been provided under section 54(6) of the CGST Act, 2017, that in cases where the claim for refund on account of zero-rated supply of goods or services or both made by registered persons, other than such category of registered persons as may be notified by the Government on the recommendations of the Council, refund on a provisional basis, ninety per cent of the total amount so claimed, excluding the amount of input tax credit provisionally accepted; and the final order shall be issued within sixty days from the date of receipt of application complete in all respects (section 54(7) of the CGST Act, 2017 refers). Rule 91 of CGST Rules, 2017 provide that the provisional refund is to be granted within 7 days from

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aid on a supply which is not provided, either wholly or partially, and for which invoice has not been issued, or where a refund voucher has been issued; (d) refund of tax in pursuance of section 77; (e) the tax and interest, if any, or any other amount paid by the applicant, if he had not passed on the incidence of such tax and interest to any other person; or (f) the tax or interest borne by such other class of applicants as the Government may, on the recommendations of the Council, by notification, specify. Formula for grant of refund in cases where the refund of accumulated Input Tax Credit is on account of zero rated supply is based on the following: Refund Amount = (Turnover of zero-rated supply of goods + Turnover of zero-rated supply of services) x Net ITC ÷Adjusted Total Turnover Where, – (A) Refund amount means the maximum refund that is admissible; (B) Net ITC means input tax credit availed on inputs and input services during the relevant period other than the input ta

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relevant period; (E) Adjusted Total turnover means the turnover in a State or a Union territory, as defined under clause (112) of section 2, excluding – (a) the value of exempt supplies other than zero-rated supplies and (b) the turnover of supplies in respect of which refund is claimed under rule 89(4A) or 89(4B) or both, if any, during the relevant period; (F) Relevant period means the period for which the claim has been filed. It may be noted that Rule 89(4B) has been inserted, w.e.f 23.10.2017, in CGST Rules, 2017 vide Notification no. 75/2017-Central Tax dated 29.12.2017 so as to provide that refund of input tax credit, availed only in respect of inputs availed in respect of inputs received under Notification no. 40/2017-Central Tax (Rate) dated 23.10.2017 or Notification no. 41/2017-Integrated Tax (Rate) dated 23.10.2017, or both or other inputs or input services used in making such exports shall be granted. Refund of ITC on account of inverted duty structure. As per Section 54(

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fied under item 5(b) of Schedule II are construction services. In respect of goods, the central government has issued Notification no. 5/2017- Central Tax (Rate) dated 28.06.2017 as amended by Notification no. 44/2017-Central Tax (Rate) dated 14.11.2017. The government has notified the following goods in respect of which unutilized ITC will not be admissible as refund: – Sr.No Tariff item, heading, sub-heading or Chapter Description of Goods 1 5007 Woven fabrics of silk or of silk waste 2 5111 to 5113 Woven fabrics of wool or of animal hair 3 5208 to 5212 Woven fabrics of cotton 4 5309 to 5311 Woven fabrics of other vegetable textile fibres, paper yarn 5 5407, 5408 Woven fabrics of manmade textile materials 6 5512 to 5516 Woven fabrics of manmade staple fibres 6A 5608 Knotted netting of twine, cordage or rope; made up fishing nets and other made up nets, of textile materials 6B 5801 Corduroy fabrics 6C 5806 Narrow woven fabrics, other than goods of heading 5807; narrow fabrics consisti

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issel-bogies, axles and wheels, and parts 15 8608 Railway or tramway track fixtures and fittings; mechanical (including electro-mechanical) signalling, safety or traffic control equipment for railways, tramways, roads, inland waterways, parking facilities, port installations or airfields; thereof parts of the foregoing It has been clarified by the Government vide Circular no. 18/18/2017-GST dated 16.11.2017, that the aforesaid notification having been issued under clause (ii) of the proviso to sub-section (3) of Section 54 of the CGST Act, 2017, restriction on refund of unutilised input tax credit of GST paid on inputs will not be applicable to zero rated supplies, that is (a) export of goods or services or both; or (b) supply of goods or services or both to a Special Economic Zone Developer of special Economic Zone Unit. Accordingly, as regards export of fabrics, it has been clarified that subject to provisions of Section 54(10) of the CGST Act, 2017, a manufacturer of such fabrics wi

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o claimed as per Rule 89(3) of CGST Rules, 2017. Also, interest will be paid for any delay in sanctioning of Refund beyond the mandated period of 60 days (as per Rule 94 of CGST Rules, 2017). The refund and/or interest sanctioned, if any, will be directly credited to the bank account of the applicant. Manual filing of refund claims Circular no. 17/17/2017-GST dated 15.11.2017 clarifies that till such time as full-fledged refund module is operationalised by GSTN, manual filing of claims has been prescribed. The application for refund of unutilized input tax credit on inputs or input services used in making such zero-rated supplies shall be filed in FORM GST RFD01A on the common portal and the amount claimed as refund shall get debited in accordance with sub-rule (3) of rule 86 of the CGST Rules, 2017 from the amount in the electronic credit ledger to the extent of the claim. The common portal shall generate a proof of debit (ARN- Acknowledgement Receipt Number) which would be mentioned

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s of the CGST Act, 2017 Manual claims in respect of inverted duty structure Refund claims on account of inverted duty structure shall be filed for a tax period on a monthly basis in FORM GST RFD-01A. However, the registered persons having aggregate turnover of up to ₹ 1.5 crore in the preceding financial year or the current financial year and who have opted to file FORM GSTR-1 on a quarterly basis (Notification No. 71/2017-Central Tax dated 29.12.2017 refers) shall apply for refund on a quarterly basis. Further, it is stated that the refund claim for a tax period may be filed only after filing the details in FORM GSTR-1 for the said tax period. It is also to be ensured that a valid return in FORM GSTR3B has been filed for the last tax period before the one in which the refund application is being filed. Since the date of furnishing of FORM GSTR 1 from July, 2017 onwards has been extended while the dates of furnishing of FORM GSTR 2 and FORM GSTR 3 for such period are yet to be no

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under section 54(3)(ii) of the CGST Act, 2017. A declaration to this effect forms part of FORM GST RFD-01A as well. Where to file the refund claims The registered person needs to file the refund claim with the jurisdictional tax authority to which the taxpayer has been assigned as per the administrative order issued in this regard by the Chief Commissioner of Central Tax and the Commissioner of State Tax. In case such an order has not been issued in the State, the registered person is at liberty to apply for refund before the Central Tax Authority or State Tax Authority till the administrative mechanism for assigning of taxpayers to respective authority is implemented. However, in the latter case, an undertaking is required to be submitted stating that the claim for sanction of refund has been made to only one of the authorities. It is reiterated that the Central Tax officers shall facilitate the processing of the refund claims of all registered persons whether or not such person was r

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til the FORM GST PMT-03 is available on the common portal. Further, the payment of the sanctioned refund amount shall be made only by the respective tax authority of the Central or State Government. Thus, the refund order issued either by the Central tax authority or the State tax/UT tax authority shall be communicated to the concerned counter- part tax authority within seven working days for the purpose of payment of the relevant sanctioned refund amount of tax or cess, as the case may be. It must be ensured that the timelines specified under section 54(7) of the CGST Act, 2017and rule 91(2) of the CGST Rules, 2017 for the sanction of refund are adhered to. Conclusion The GST Law provides for multiple options to the suppliers of zero rated supplies to claim refund of taxes paid on the input side. One of the options is export under bond or LUT and claim refund of unutilised ITC. The law also provides for refund of unutilised ITC where credit accumulation is on account of inverted duty

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Goods and Services Tax – Taxability and ITC availability on Gifts under GST – TMI Updates – Highlights

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Goods and Services Tax – GST – By: – Rakesh Chitkara – Dated:- 16-10-2017 Last Replied Date:- 17-10-2017 – FAQ 1: What is a gift? The word 'gift' has not been defined in the CGST Act. Hence, one will have to refer to other laws as well as case laws to determine the meaning of the term. Gift-Tax Act (18 of 1858) had defined the word gift to mean transfer by one person to another of any existing movable or immovable property voluntarily and without consideration in money or money's worth. The Honorable Supreme Court cited the definition of 'gift' from Corpus Juris Secundum, Volume 38 in the case of Sonia Bhatia v. State of UP 1981 (3) TMI 250 – SUPREME COURT as follows: A 'gift' is commonly defined as a voluntary transfer of property by one to another, without any consideration or compensation therefor. A 'gift' is a gratuity and an act of generosity and does not require a consideration, but there can be none; if there is a consideration for the trans

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conclude that to constitute a gift following elements are required to be satisfied:- (1) Supply must be made without any contractual obligation. If any supply is made under a contractual obligation it cannot be termed as a 'gift'. (2) Supply must be made without any consideration in money or money's worth. Hence, supplies made out of love and affection or such other non- legal considerations can only be termed as 'gifts'. FAQ 2: Which provision affects the taxability of gifts and treatment of Input Tax Credit on inward supply of gifts under the GST law? Section 17 (5) of the CGST Act deals with Blocked credits. Clause (h) of Section 17(5) deals with ITC on gifts. The relevant part of the said provision reads as under: Sec. 17(5): Notwithstanding anything contained in sub-section (1) of section 16 and sub-section (1) of section 18, input tax credit shall not be available in respect of the following, namely:- (a) ………………&hellip

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or furtherance of business? When gifts are purely for sales promotion/ publicity, can ITC be availed? Different types of gifts may be given in course or furtherance of business. Some of them are customary and almost all of them are in course or furtherance of business. There may be unbranded gifts, branded/ customized gifts in the form of publicity material, Diwali gifts or gifts on festive occasions, target based rewards in lieu of discounts/ incentives etc. In course of business means usual business practice such as manufacturing, trading etc. It implies those transactions which are directly related to business without which business cannot be run, like purchase of raw material, capital goods etc. On the other hand, furtherance of business means the act of advancement/promotion of business for its sustained growth and profitability. In such a scenario, it can be understood that Diwali gifts and other festive and customary gifts are given to persons related to a business and shall be

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clearly evident/ commercial or monetary consideration, but may have extra commercial consideration receipt, as nothing in this world is free. What happens in such case? Ans. A gift is generally an inducement, i.e. a means of influencing the recipient. The act of inducement cannot in general be excluded from the scope of being a supply, and if the consideration is not wholly in money, the transaction becomes subject to Valuation Rules. In such case the Valuation Rules require the transaction to be valued at Open Market Value of the subject goods (given by way of gift). The Open Market Value of ordinarily purchased goods can be easily reckoned as the purchase price of the same goods. In such case, if the giving away by way of gift is considered as a supply to be valued at the cost of purchase, the Input Tax Credit involved shall be equal to the output GST payable on the supply of the said gift, in course or furtherance of business. Thus the output GST and input GST on the goods to be gi

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n 17(5) is not whether it is in course or furtherance of business or not, but rather it is whether it is for consideration or not. If yes, whether the quantification of the consideration and payment of GST on the same is distinctively required or not. FAQ 5: Clause (h) of Section 17(5) of CGST Act 2017 stipulates that the input tax credit with respect to the goods disposed of by way of gift shall not be allowed. The definition of goods as per Section 2 (52) means every kind of movable property…………..which are agreed to be served before supply or under a contract of supply . That means, for a commodity to be called goods under this law, it is necessary that it is used for the purpose of supply and in order to deem a particular transaction as supply, it should have some consideration involved or else, the same should be mentioned under Schedule I of the Act. There is neither any consideration nor is there any reference of gifts under Schedule I except in case o

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course or furtherance of business and the conditions under Section 2 (52) and Section 16 also are satisfied, why ITC on gifts should not be available? ITC on goods given away or disposed as gifts should not be available when no tax is being paid on their disposal. The logic of satisfying Section 16 (1) is of no avail to earn this credit lawfully, because Section 17(5) itself starts with a non obstante clause, which means even if Section 16 (1) allows, Section 17(5) shall block. Moreover, Section 17 (5) is a specific provision because it is an established principle that specific provisions prevail over general provisions. In the landmark case, J.K. Cotton Spinning & Weaving Mills Co. Ltd. v. State of U.P., 1960 (12) TMI 77 – SUPREME COURT , it was held: 9. …We reach the same result by applying another well known rule of construction that general provisions yield to special provisions This doctrine has always been upheld. Our Supreme Court has followed this principle laid dow

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ision and Section 17(5) is specific. Section 17(5) over rides Section 16(1) in clear words. Furthermore, though 17(5) is non obstante clause unless section 16 conditions fulfilled ITC is not eligible and once eligible if not hit by 17(5), only then ITC can be availed. In other words, if something qualifies for ITC under section 16 but is blocked from ITC under section 17 then ITC would not be available. Similarly, if there is a contradiction between Schedule I and Section 17(5) (h), in my view, Schedule I should prevail. FAQ 7: Whether the sweets and beverages purchased for distribution to employees/workers/customers/ associates on Diwali? It should be noted that section 17(5) (b) (i) specifically restricts the input tax credit with respect to food and beverages and Section 17(5) (h) restricts or bars credit on gifts. Hence any sweets or beverages given to bought for employees/workers/customers/ associates whether construed as food or beverages or as gifts shall not be eligible for cla

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nt can be availed as deduction under Income tax law. Especially, because gifts are voluntarily given and do not create any contractual obligation, even if they are in course or furtherance of business, the registered person should adopt a policy that whenever goods are purchased for the purpose of gifts, they are purchased as B2C supplies from a registered person to reduce/ remove hardship of reversal and reconciliation. FAQ 9: What about gifts given as offer packs, like Buy1Get1free, X item free against purchase of 100 pieces Y item etc. Section 15 of the CGST Act talks about Transaction Value . Every time, something is given free of cost or a promotional scheme, it has an extra commercial consideration which creates the confusion for payment of GST on outward supply or reversal of ITC or both. The above are gifts/ free supplies in course of business. If consideration for these goods is not charged directly, they shall qualify as gifts and ITC shall not be eligible. If these goods are

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to get some sort of business mileage, however, it is worthy to note first, that incurring an expenditure is nothing, but consuming something. When that expenditure is directly related to the supply in course or furtherance of business, it is an input. No customer seeks an obligation of company logo printed publicity material, in course of supply of its goods. It is the supplier s own will to supply such goods and he gives them as gifts as no customer would wish to pay for it voluntarily, and hence it cannot be said to be a component in course of supply. The above arguments emphasize towards two vital aspects to be comprised in a transaction for furtherance of business: Regularity : Is the activity conducted in a regular manner based on sound and recognized business principles? : Is the activity predominantly concerned with the making of taxable supply for consideration/ profit motive? In the above transaction, both are missing and ITC cannot be availed even by virtue of Section 16 in s

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ates or employees are not taxed when they are disposed, and ITC is also allowed upon them, the tax on such goods shall get avoided in a way. Even the erstwhile Central Excise law, did not allow Cenvat credit on items purchased and given as gifts, or free samples. The erstwhile Rule 3(5) had prescribed that when inputs or capital goods, on which CENVAT credit has been taken, are removed as such from the factory, or premises of the provider of output service, the manufacturer of the final products or provider of output service, as the case may be, shall pay an amount equal to the credit availed in respect of such inputs or capital goods and such removal shall be made under the cover of an invoice referred to in Rule 9. The Cenvat Credit availed on procurement of such goods could be utilized for payment of – Duty on such goods when removed as such or after being partially processed and the duty payable on these goods was held to be an amount equal to CENVAT credit taken on inputs. A conjo

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xceeding ₹ 50,000/- to an employee during a year. Now what is Schedule I, it is those transactions which are without consideration but held as supply. Which means, if anything is given for a consideration, i.e. service as per terms of service in case of employment, it is covered by Schedule III and cannot be covered under Schedule I at all. Only those transactions shall enter Schedule I, which are without consideration, i.e. not covered by the terms of contract in case of employees, but given voluntarily. Since they are not exempt by virtue of Schedule III, limited exemption of ₹ 50000/- per year employee is conferred under Schedule I specifically. FAQ 13: Anything given to an employee, unless mentioned in his offer letter or such defined remuneration / incentive will be gift . Thus, if gift to employee is more than 50000 during a year, it will become a fresh supply from employer to employee and because they are related party, value is to be determined as per rules as discu

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ccept that this is the intent of the provisions. As discussed above, the value of outward supply in such cases as per valuation rules is open market value, i.e same as purchase cost. The foregoing of GST is nothing but payment of GST on the said goods disposed without any consideration. This should suffice. This also paves way for availing ITC on gifts to employees upto the value of ₹ 50,000 in a year. Whether the foregoing or reversal of ITC (as a consumer of such goods / as a B2C transaction as discussed above) is not equivalent to payment of GST on any transaction being considered as deemed outward supply. As per earlier central excise law also, payment of duty was considered at par with reversal of cenvat credit. In GST also, if IC is foregone, no further payment of GST should lie on transactions without consideration. FAQ 14: Under Schedule I, gifts to all other related persons are considered as supply as gifts are invariably, without consideration. In case, gifts are given

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Goods and Services Tax – GST – By: – Bimal jain – Dated:- 16-10-2017 – Dear Professional Colleague, Gist of various GST notifications/ order giving effect to recommendations made in 22nd GST Council meeting The GST Council on October 6, 2017, has introduced slew of reforms in its 22ndmeeting held at New Delhi, amidst the anomalies going on in the Trade and Industry on various critical provisions of GST Law and Rules made thereunder. To give effect to the changes suggested, around 41 new Notifications and an Order were issued by the Government on October 13, 2017, under CGST, UTGST, IGST and Compensation Cess. Few more notifications are expected soon to implement left out changes like the concept of quarterly return for small businesses etc. For the ease of reference, we are summarising hereunder the important notifications, for your easy digest: Notifications/Order pertaining to composition scheme Enhancement of turnover limit for Composition Scheme The Central Government vide Notific

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Services Tax (Removal of difficulties) Order, 2017, to clarify the following in relation to composition scheme: Supplier of food with services eligible for composition scheme even if exempt services are also provided: If a person supplies goods/services referred to in clause (b) of paragraph 6 of Schedule II of the CGST Act, 2017 [i.e. Supply of food & beverages with services] and also supplies any exempt services, including services by way of extending deposits, loans or advances in so far as the consideration is in form of interest or discount, the said person shall be eligible for the composition scheme under Section 10 of the CGST Act, 2017, subject to the fulfilment of all other conditions specified therein. Non-inclusion of exempt services for calculating aggregate turnover:Further, for computing aggregate turnover in order to determine eligibility for composition scheme, value of supply of such exempt services shall not be taken into account. Notifications pertaining to Rev

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March 31, 2018. Notes: Similar notification is issued under the UTGST Act vide Notification No. 38/2017 – Union Territory tax (Rate) dated October 13, 2017. Notification No. 8 was effective from July 1, 2017 No RCM on inter-state procurements made from unregistered person till March 31, 2018 The Central Government vide Notification No. 32/2017 – Integrated Tax (Rate) dated October 13, 2017, has exempted the inter-state supply of goods or services or both received by a registered person from any supplier, who is not registered, from the whole of the IGST leviable under Section 5(4) of the IGST Act, 2017 till March 31, 2018. Therefore, any registered person procuring taxable goods/services from unregistered suppliers, shall not be required to pay IGST under reverse charge mechanism till March 31, 2018. RBI is liable to pay GST under RCM in case of services procured from Member of Overseeing Committee Notification No. 13/2017 dated June 28, 2017 [ RCM Notification ] specifies the category

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2017 dated June 28, 2017 – Central Tax (Rate) [ RCM Notification ] specifies the category of goods on which GST is liable to be paid by the recipient under reverse charge in terms of Section 9(3) of the CGST Act, 2017. The Central Government vide Notification No. 36/2017-Central Tax (Rate) dated October 13, 2017 has inserted new entry [S.No. 6] in the list of goods under RCM Notification, to provide that used vehicles, seized and confiscated goods, old and used goods, waste and scrap supplied by CG, SG, Union Territory or Local Authority to any registered person, shall be covered under RCM i.e. CGST thereon shall be paid by such registered person under RCM. Notes:- Similar notification is issued under the UTGST Act vide Notification No. 36/2017 – Union Territory tax (Rate) dated October 13, 2017. Similar notification is issued under the IGST Act vide Notification No. 37/2017- Integrated Tax (Rate) dated October 13, 2017. Amendment in the CGST Rules, 2017: The Central Government vide No

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1 – Column titled Cess under Table 6 (dealing with Zero rated supplies made to SEZ and deemed export) of Form GSTR – 1 is inserted. Amendment in Form GSTR – 1A – Column titled Cess under Table 4 (dealing with Zero rated supplies made to SEZ and deemed export) of Form GSTR – 1A is inserted. Insertion of new instruction for Form GSTR – 4 – i.e. For the Tax periods July 2017 to September 2017 and October 2017 to December 2017, serial 4A of Table 4 shall not be furnished. Serial No. 4A of Table 4 deals with inward supplies received from a registered supplier (other than supplies attracting reverse charge). Sub- rule 3(A) in Rule – 3 is substituted – A person who has been granted registration on a provisional basis under Rule 24 or who has been granted certificate of registration under sub-rule (1) of Rule 10 may opt to pay tax under Section 10 (i.e. under composition scheme) with effect from the first day of the month immediately succeeding the month in which he files an intimation in FOR

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d supplied on lease before July 01, 2017. Supply of Motor Vehicle:- If the supplier is a registered person and such supplier had purchased the Motor Vehicle prior to July 1, 2017 and has not availed input tax credit of central excise duty, Value Added Tax or any other taxes paid on such vehicles Note:- Nothing contained in this notification shall apply on or after July 1, 2020 Similar notification is issued under the UTGST Act vide Notification No. 37/2017 – Union Territory tax (Rate) dated October 13, 2017. Similar notification is issued under the IGST Act vide Notification No. 38/2017- Integrated Tax (Rate) dated October 13, 2017. Similar notification is issued under GST (Compensation to the States) Act for Motor Vehicle falling under chapter heading 8702 & 8703 vide Notification No. 7 /2017-Compensation Cess (Rate) dated October 13, 2017. Relief for Small and Medium Enterprises No GST on advance received against supply of goods for assesses having aggregate turnover up to &#8377

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ection 24 of the CGST Act, 2017, persons making any inter-state taxable supply are required to take compulsory registration in GST irrespective of threshold limits. The Central Government vide Notification No. 10/2017 – Integrated Tax dated October 13, 2017 has exempted the persons making inter-state supplies of taxable services and having an aggregate turnover not exceeding an amount of ₹ 20 lakhs / ₹ 10 lakhs (in case of Special Category States other than J&K) in a financial year from obtaining compulsory registration in GST. Other important Notifications Extension of time limit for filling of return in Form GSTR – 5A for the months of July, August & September 2017 upto November 20, 2017 The Commissioner vide Notification No. 42/2017 – Central Tax dated October 13, 2017, has extended the time limit for furnishing the return in Form GSTR – 5A for the month of July 2017, August 2017 and September 2017 by a person supplying online information and database access or r

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17, August 2017 and September 2017 upto October 31, 2017. Section 18(1) of the CGST Act, 2017 deals with availability of input tax credit on the inputs held in stock and inputs contained in semi-finished or finished goods held in stock in special circumstances like the persons applying for registration within 30 days from the date on which he become liable to registration, persons taking voluntary registration, persons ceasing to pay tax under composition scheme etc. Exemption of GST on various notified services The Government vide Notification No. 32/2017- Central Tax (Rate) dated October 13, 2017, has further amended the Notification No. 12/2017 – Central Tax (Rate), dated June 28, 2017, containing the list of services exempted from GST and has further inserted/amended the following entries:- Supply of service by CG, SG, UT, local authority or governmental authority by way of any activity in relation to any function entrusted to a Panchayat under article 243G of the Constitution [Ear

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Notification No. 32/2017 – Union Territory tax (Rate) dated October 13, 2017. Similar notification is issued under the IGST Act vide Notification No. 33/2017- Integrated Tax (Rate) dated October 13, 2017. Empowering State Tax officers for processing and grant of refund The Central Government vide Notification No. 39/2017 – Central Tax dated October 13, 2017, has specified the proper officers appointed under the respective SGST Act, 2017 or UTGST Act, 2017 to act as proper officers (in respect of a registered person located in the territorial jurisdiction of the said officers who applies for the sanction of refund to the said officers),for sanctioning of refund under section 54 or section 55 of the CGST Act, 2017 read Rules made thereunder except rule 96 of the Central Goods and Services Tax Rules, 2017 (dealing with refund of IGST paid on goods exported out of India). Note: Similar notification is issued under the IGST Act, 2017 vide Notification No. 11/2017 -Integrated Tax dated Octob

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Goods and Services Tax – GST – By: – CASanjay Kumawat – Dated:- 16-10-2017 – List of Notifications Based on the recommendation of the GST Council s 22nd meeting, the Central Government has issued various Notifications to make effective/applicable all the changes as recommended by the GST Council. List of Notifications and their particulars are as follows: Notification No. Integrated Tax (Rate)- 13.10.2017 Notification No. 32/2017 (On the similar lines, Notification No. 38/2017-Central Tax (Rate) dated 13.10.2017 has been issued under CGST Act, 2017) Exempts the inter-State supply of goods or services or both received by a registered person from unregistered supplier from the whole of the IGST leviable thereon under section 5(4) of the IGST Act. The exemption contained in this notification shall apply to all registered persons till the 31st day of March, 2018. Applicable w.e.f. 13.10.2017. Notification No. 33/2017 (On the similar lines, Notification No. 32/2017-Central Tax (Rate) dated

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om Central Government, State Government, Union territory or local authority, in the form of grants. Entry No. 22A: Services provided by a goods transport agency to an unregistered person, including an unregistered casual taxable person, other than the specified recipients. Entry No. 24A: Service by way of access to a road or a bridge on payment of annuity. Widened the scope of exemption Entry No. 43 of the Notification No.09/2017- Integrated Tax dated 28.06.2017. Revised text is as follows: Upfront amount (called as premium, salami, cost, price, development charges or by any other name) payable in respect of service by way of granting of long term lease of thirty years, or more) of industrial plots or plots for development of infrastructure for financial business, provided by the State Government Industrial Development Corporations or Undertakings or by any other entity having 50 per cent. or more ownership of Central Government, State Government, Union territory to the industrial unit

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x (Rate) dated 13.10.2017 has been issued under CGST Act, 2017) Insertion of new entry for reverse charge mechanism in Notification No. 10/2017-Integrated Tax, dated 28.06.2017, are as follows: Entry No. 12 Category of Supply of Services : Supply of services by the members of Overseeing Committee to Reserve Bank of India Supplier of service: Members of Overseeing Committee constituted by the Reserve Bank of India Recipient of Service: Reserve Bank of India. Notification No. 35/2017 (On the similar lines, Notification No. 34/2017-Central Tax (Rate) dated 13.10.2017 has been issued under CGST Act, 2017) Change in rate of various items Notification No. 36/2017 (On the similar lines, Notification No. 35/2017-Central Tax (Rate) dated 13.10.2017 has been issued under CGST Act, 2017) Amended the Notification No. 02/2017-Integrated Tax (Rate) dated 28.06.2017 – Exemption for certain specified goods. Notification No. 37/2017 (On the similar lines, Notification No. 36/2017-Central Tax (Rate) dat

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e Motor Vehicles was purchased by the lesser prior to 1st July, 2017 and supplied on lease before 1st July, 2017 i. The supplier of Motor Vehicle is a registered person. ii. Such supplier had purchased the Motor Vehicle prior to 1st July, 2017 and has not availed input tax credit of central excise duty, Value Added Tax or any other taxes paid on such vehicles Sunset period: On or after 1st July 2020. Notification No. 39/2017 (On the similar lines, Notification No. 31/2017-Central Tax (Rate) dated 13.10.2017 has been issued under CGST Act, 2017) Amendments of the GST rates for the following services: Composite supply of works contract as defined in clause (119) of section 2 of the CGST Act, 2017. – Earth work related – 5% Oil and gas exploration and production (E&P)- 12% Transport of passengers by any motor vehicle – 5% or 12% Transportation of natural gas through pipeline- 5% or 12% Renting of any motor vehicle- 5% or 12% Leasing of motor vehicles purchased and leased prior to 1st

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T Acts by the Commissioner of the CGST Act, 2017, shall act as proper officers for the purpose of sanction of refund under section 20 of the IGST Act. Central Tax- 13.10.2017 Notification No. 40/2017 Notifies the registered person whose aggregate turnover in the preceding financial year did not exceed one crore and fifty lakh rupees or the registered person whose aggregate turnover in the year in which such person has obtained registration is likely to be less than one crore and fifty lakh rupees and who did not opt for the composition levy under section 10 of the CGST Act as the class of persons who shall pay the central tax on the outward supply of goods at the time of supply as specified in section 12(2)(a) of the CGST Act including in the situations attracting the provisions of section 14 of the said Act, and shall accordingly furnish the details and returns as mentioned in Chapter IX (Returns) of the CGST Act and the rules made thereunder and the period prescribed for the payment

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Extends the time limit for making a declaration, in FORM GST ITC-01, by the registered persons, who have become eligible during the months of July, 2017, August, 2017 and September, 2017, to the effect that they are eligible to avail the input tax credit under sub-section (1) of section 18 of the CGST Act, till the 31st day of October, 2017. Notification No. 45/2017 Amended the specified CGST Rules, are as follows: Rule-3 for Composition Insertion of New Rule 46A for Invoice cum bill of supply Rule 54 for consolidated tax invoices Rule 62 for GSTR-4 Rule 3 for Form GST CMP-02 In Form GSTR-1 , Zero rated Supply In Form GSTR-1A , Zero rated Supply In Form GSTR-4 Notification No. 46/2017 Threshold limits for composition scheme have been increased, From 75 lakhs to 1 Crores From 50 lakhs to 75 lakhs Compensation Cess (Rate)- 13.10.2017 Notification No. 6/2017 Insertion of new entry for levy of cess on motor vehicle, is as follows: Entry No.: 2A Description of goods: Leasing of motor vehicl

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Goods and Services Tax – Started By: – Greeshma Vp – Dated:- 16-10-2017 Last Replied Date:- 20-10-2017 – The payment of GST on Reverse Charge basis for supplies by Unregistered person to registered person has been suspended till 31.03.2018 vide notifications dated 13.10.2017. Is there a clarity on the date of applicability of this suspension. One view is that the notification is prospective in nature and hence GST is to be remitted on Unregistered dealer supplies received till 12.10.2017. Request experts to please give your views on this. In case the notification is applicable only from 13.10.2017, please also give your views on whether the date of receipt of supply, date of invoice or the date of payment is to be reckoned to determine if

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from the appointed day and not from 13.10.2017. – Reply By Rajagopalan Ranganathan – The Reply = Sir, Notification is executive legislation. It can have only prospective effect. If the government wants to give retrospective effect it can do it only through Finance Bill/Finance Act. Regarding payment of tax it shall be paid before filing the monthly return (GSTR-3). – Reply By Suyog Vaze – The Reply = Thank you Sir for your valuable insights. – Reply By Greeshma Vp – The Reply = Thank you Sir. – Reply By KASTURI SETHI – The Reply = I concur with the views of Sh.Ranganathan Sir. – Reply By Ganeshan Kalyani – The Reply = The effect of the change in the Notification is always prospective unless specifically mentioned. So the change is with eff

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Goods and Services Tax – Started By: – PAWANKUMAR GARG – Dated:- 16-10-2017 Last Replied Date:- 18-10-2017 – SIR, ONE OF MY CLIENT HAVE SORTEX MACHINE AND RECEIVED LABOUR CHARGES FOR SORTAX OF RICE. PLEASE LET ME KNOW WHEATHER GST IS APPLICABLE OR NOT, IF APPLICABLE THEN PROVIDE SAC – Reply By Ravikumar muthusamy – The Reply = pure labor to govt dept is exempted otherwise it is taxable under GST – Reply By Rajagopalan Ranganathan – The Reply = Sir,Will you please elaborate your query especially

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Goods and Services Tax – GST – By: – Dr. Sanjiv Agarwal – Dated:- 16-10-2017 – Alcoholic beverages sector is the second largest contributor of taxes to state Government exchequers yielding more than INR 90,000 crores in taxes every year. The total tax impact for liquor companies is in the range from 70-150% in most states as no inter-tax set-offs are available to them. While alcoholic beverages represent 25% of the food and beverage market in China and the US, in India, spirits alone comprise of 34% share, making it the largest category. For most states, alcohol contributes to 20 to 25% of State revenue in the form of state excise. Constitutional Provisions The Constitution of India has been amended to give effect to GST by the Constitution (101st Amendment) Act, 2016. In article 366, a new definition of goods and services tax has been provided in clause (12A), i.e., goods and services tax means any tax on supply of goods, or services or both except taxes on the supply of the alcoholi

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liquor Sale of IMFL Sale of imported liquor Non-taxable Incomes There would be certain incomes which would not be exigible to any tax i.e., GST or State excise /VAT such as : Export incentives, if any Tax refunds / incentives Sale of assets Interest income Dividend Write offs etc Expenses that will suffer GST If one looks at expense side of any alco-beverage company, the situation is more worse – you end up paying tax (GST) on almost every expenditure head despite the fact that this sector is out of GST net. This exclusion is only for output tax. Tax on all inputs or input services is not excluded or exempt. To illustrate, GST would be payable on the following heads of expenses /overheads: Borrowing costs other than interest on loans All stores and spares consumed Repairs & maintenance Hire charges Legal expenses Manpower recruitment expenses Security agency charges Insurance Royalties payable Rent Traveling expenses Director's fees Professional & legal fees Communication e

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o-beverage supplies are effected through licensed shops, bars, permit rooms, restaurants, hotels etc in one or the other form. So far as 'only sale' of liquor or alco-beverages are concerned (say, from shops), the taxation is simple, no GST at all but VAT on full supply value. However, where liquor is served at a place such as bar, restaurant, hotel etc. along with other food and beverages, the taxability may become complex and this may create new areas of dispute between tax authorities and tax payers. For example, a hotel may offer a buffet dinner which includes food and complimentary beer / hard drink / aerated drinks for a common price of ₹ 2500 per person. The issue would be that how to tax the amount of 2500/-, i.e., whether GST is payable on entire 2500/- @ 18 percent (the rate which is applicable to restaurants / hotels) or it should be split between food, drinks and alco-beverages and taxed separately for GST and VAT. This may not be practical. Alternatively, sho

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tion of used bottles An example of adverse GST impact would be on the exclusive patented bottles which alco-beverage manufacturers generally use five to seven times. Presently, many States impose a lower VAT (Value-added tax) rate or a standard VAT rate on glass bottles subject to input credit as compared to the VAT imposed on the finished products sold within the State i.e., the used glass bottles which are purchased by brewers/spirits manufacturers from used bottle dealers are again taxed at the lower/standard VAT. This taxation arrangement with regard to the recycling of glass bottles may undergo a change post-GST implementation, as each re-use/re-supply is likely to a suffer GST @ 12% or 18% (rate not yet fixed, assumed) with no possibility of tax credit for recycled glass bottles as alcohol is excluded from the GST regime. Consequently, the effective GST cost on every bottle will be about 70% of the purchase price of a new bottle. This too will add to cost as levying VAT on used b

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as such or after such minor processing which does not change the nature of the goods and where no input tax credit has been availed on the purchase of such goods, the value of supply shall be the difference between the selling price and the purchase price and where the value of such supply is negative, it shall be ignored. This is known as the margin scheme. Further, Notification No.10/2017-Central Tax (Rate), dated 28.06.2017 exempts central tax leviable on intra-State supplies of second hand goods received by a registered person, dealing in buying and selling of second hand goods [who pays the central tax on the value of outward supply of such second hand goods as determined under sub-rule (5)] from any supplier, who is not registered. This has been done to avoid double taxation on the outward supplies made by such registered person, since such person operating under the margin scheme cannot avail input tax credit on the purchase of second hand goods. Thus, margin scheme can be avail

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GST – States – 18/2017 – Dated:- 16-10-2017 – GOVERNMENT OF NAGALAND OFFICE OF THE COMMISSIONER OF STATE TAXES NAGALAND: DIMAPUR Dated Dimapur, the 16th October, 2017 NOTIFICATION-18/2017 NO.CT/LEG/GST-NT/12/17: In pursuance of section 168 of the Nagaland Goods and Services Tax Act, 2017 (4 of 2017) (hereafter referred to as the said Act) and clause (b) of sub-rule (1) of rule 40 of the Nagaland Goods and Services Tax Rules, 2017, the Commissioner, hereby extends the time limit for making a dec

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GST – States – 17/2017 – Dated:- 16-10-2017 – GOVERNMENT OF NAGALAND OFFICE OF THE COMMISSIONER OF STATE TAXES NAGALAND: DIMAPUR Dated Dirnapur, the 16th October. 201 7 NOTIFICATION- 17/2017 NO.CT/LEG/GST-NT/12/17: In exercise of the powers conferred by sub-section (6) of section 39 read with section 168 of the Nagaland Goods and Services Tax Act, 2017 (4 of 2017) (hereinafter referred to as the said Act) and in supercession of notification No. 10/2017, dated the 28th August, 2017 file NO.CT/LE

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GST – States – 16/2017 – Dated:- 16-10-2017 – GOVERNMENT OF NAGALAND OFFICE OF THE COMMISSIONER OF STATE TAXES NAGALAND: DIMAPUR Dated Dimapur, the 16th October, 201 7 NOTIFICATION- 16/2017 NO.CT/LEG/GST-NT/12/17: In exercise of the powers by sub-section (6) of section 39 read with section 168 of the Nagaland Goods and Services Tax Act, 2017 (4 of 2017) and section 20 of the Integrated Goods and Services Tax Act, 2017 (13 of 2017), and in supersession of notification No. 09/2017, dated the 28th

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GST – States – 15/2017 – Dated:- 16-10-2017 – GOVERNMENT OF NAGALAND OFFICE OF THE COMMISSIONER OF STATE TAXES NAGALAND: DIMAPUR Dated Dimapur, the 16th October, 2017 NOTIFICATION- 15/2017 NO.CT/LEG/GST-NT/12/17: In exercise of the powers conferred by sub-section (6) of section 39 read with section 168 of the Nagaland Goods and Services Tax Act, 2017 (4 of 2017) (hereinafter referred to as the said Act), the Commissioner hereby extends the time limit for furnishing the return by a composition s

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GST – States – G.O.MS. No. 456 – Dated:- 16-10-2017 – GOVERNMENT OF ANDHRA PRADESH REVENUE (COMMERCIAL TAXES-II) DEPARTMENT G.O.MS. No. 456 Dated: 16-10-2017 NOTIFICATION In exercise of the powers conferred by section 128 of the Andhra Pradesh Goods and Services Tax Act, 2017 (Act No.16 of 2017), the Government, on the recommendations of the Goods and Services Tax Council, hereby waives the late fee payable under section 47 of the said Act, for all registered persons who failed to furnish the r

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GST – States – G.O.MS. No. 459 – Dated:- 16-10-2017 – GOVERNMENT OF ANDHRA PRADESH REVENUE (COMMERCIAL TAXES-II) DEPARTMENT G.O.MS. No. 459 Dated: 16-10-2017 NOTIFICATION In exercise of the powers conferred by section 164 of the Andhra Pradesh Goods and Services Tax Act, 2017 (Act No.16 of 2017), the Government hereby makes the following amendments to the Andhra Pradesh Goods and Services Tax Rules, 2017, issued in GO.Ms.No.227, Revenue (CT-II) Dept., Dt.22-06-2017, as subsequently amended. (1) These rules may be called the Andhra Pradesh Goods and Services Tax (Seventh Amendment) Rules, 2017. (2) Save as otherwise provided in these rules, they shall be deemed to have come into force with effect on and from 15th September, 2017. AMENDMENTS

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date: Provided that the said persons shall not be allowed to furnish the declaration in FORM GST TRAN-1 after the statement in FORM GST ITC-03 has been furnished. ; (ii) in sub-rule (5), after the words, brackets and figure or sub-rule (3) , the words, brackets, figure and letter or sub-rule (3A) shall be inserted; (3) after rule 120, the following rule shall be inserted, namely:- 120A. Every registered person who has submitted a declaration electronically in FORM GST TRAN-1 within the time period specified in rule 117, rule 118, rule 119 and rule 120 may revise such declaration once and submit the revised declaration in FORM GST TRAN-1 electronically on the common portal within the time period specified in the said rules or such further pe

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from one State to another by a person who has been exempted from the requirement of obtaining registration under clauses (i) and (ii) of section 24, the e-way bill shall be generated by the said person irrespective of the value of the consignment. Explanation – For the purposes of this rule, the expression handicraft goods has the meaning as assigned to it in the Notification issued in G.O.Ms.No.457, Revenue (CT-II) Dept., Dt.16-10-2017. (7) With effect on and from the 1st day of July, 2017, in FORM GST TRAN-1 , (i) in Serial No. 5(a), in the heading, after the words, figures and brackets Section 140(1) , the words, figures, brackets and letter , Section 140 (4) (a) and Section 140(9) shall be inserted; (ii) in Serial No. 7(a), in the tabl

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