Goods and Services Tax

Goods and Services Tax – GST – By: – KASTURI SETHI – Dated:- 7-7-2017 Last Replied Date:- 28-7-2017 – DOES THRESHOLD EXEMPTION REALLY EXIST UNDER GST ACT ? Answer is big NO . Threshold exemption of turnover of ₹ 20 lakhs is only in the name. Threshold exemption of ₹ 20 lakhs has been denied by Govt. by attaching following strings to the businessmen :- As per Section 24 of the CGST/SGST Act, the following categories of persons shall be required to be registered compulsorily irrespective of the threshold limit: i) persons making any inter-State taxable supply; ii) casual taxable persons; iii) persons who are required to pay tax under reverse charge; iv) electronic commerce operators required to pay tax under sub-section (5) of section 9; v) non-resident taxable persons; vi) persons who are required to deduct tax under section 51; vii) persons who supply goods and/or services on behalf of other registered taxable persons whether as an agent or otherwise; viii) Input service d

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hs is a small business man whether he is a manufacturer or dealer or service provider. Virtually, Govt. has snatched threshold exemption from small persons by imposing aforesaid conditions on them. It tantamounts to snatching fundamental right to live. These are the noiseless cries of small business which must be listened to by the Govt. In case the Govt. intends to woo the hearts of small businessmen, nay, middle class families, Govt. must remove all the caps imposed upon them and enable them to avail threshold exemption like in pre-GST period. A person with a turnover of 20 lakhs has to pay rent of premises, maintenance of premises, Income Tax and now GST and life is not restricted to the basic needs of Roti, Kapda Aur Makan. There are necessities like education and health expenses, savings for future etc. How far such meager threshold exemption with too much restrictions is justified ? The very purpose of threshold exemption is defeated by the aforesaid conditions imposed upon for a

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e.f. 1.7.17} 20 lakhs 20 lakhs GST(w.e.f.1.7.17) Now after a decade manufacturers, wholesale dealers, Retailers and Service Providers have been brought at par by way of allowing threshold exemption limit of turnover of just ₹ 20 lakhs each. Here it would be pertinent to analyse why any Govt. did not increase threshold exemption for such a long period which was overdue. Rate of inflation may be the possible factor for non-increase of threshold exemption for a decade. So it is worthwhile to have a look into the history of rates of inflation existed during last 15 years which are given in the table given below: YEAR RATE OF INFLATION BASED ON CPI THRESHOLD EXEMPTION ALLOWED TO MANUFACTURER THRESHOLD EXEMPTION ALLOWED TO SERVICE PROVIDER PETROL PRICE PER LTR. GOLD PRICE International currency 2003 3.719 1 Crore NIL 31.00 5718.95 2004 3.785 1 Crore NIL 37.33 6145.38 2005 5.566 1 Crore 4 lakhs 39.99 6900.56 2006 6.529 1 Crore 4 lakhs 46.40 9240.32 2007 5.512 1.5 crore 8 lakhs 42.37 999

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suffered a lot due to stagnant threshold limit for a decade. As per well-known Statisticians, statistical data does not indicate 100% accuracy. So the rate of inflation cannot be relied upon for all economic policies of Govt. Govt. cannot deny the sky rocketing prices of all commodities. The prices of gold, an international currency gives the true picture of sky rocketing prices of all the commodities as prices are influenced by international marketing forces. Govt. has done gross injustice to all manufactures, dealers and service providers by fixing threshold exemption of just ₹ 20 lakhs each. Ultimately, repercussion will be on poor and middle class families. Modvat facility was introduced in April, 1986 and thereafter it was called Cenvat Credit and Input Tax Credit. Even a period of three decades has lapsed, there is a large number of dealers and service providers who do not even know what is this credit facility and how they can get set-off. So all small manufacturers, deale

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akhs (iii) For Service Providers : ₹ 30 lakhs Such increase is not unjustified by any amount of logic. – Reply By MARIAPPAN GOVINDARAJAN – The Reply = Welcome Sethi Sir to Articles Section. You have impressed on your first article itself. – Reply By KASTURI SETHI – The Reply = Sir, Thanks a lot. Really, you are my source of inspiration. K.L.SETHI – Reply By NANDAKUMAR PANICKER – The Reply = Nice article Sethi sab. Moreover, it appears that in case of supply received from an unregistered person, whether he is falling under threshold exemption or not, to a registered person; he is liable to pay the tax under reverse charge. I am referring Section 9(4) of CGST. That means, the Govt. is still not losing the revenue in most of the cases. Please correct me if I am wrong. – Reply By KASTURI SETHI – The Reply = Sh.Nand Kumar Panicker Ji, Sir, I agree with you in toto. You are absolutely right. Thanks for liking and appreciating my article.It has boosted m

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ce piece indeed. . Congratulations – Reply By swaminathan venkataraman – The Reply = Makes for an interesting read; for that matter, in one's longstanding form conviction, in the ultimate analysis, any such threshold for 'exemption' is highly arbitrary, founded/stemmed on a dubious idea, – being a 'rule of thumb', arbitrarily fixed by bureaucracy,with no sanctity attached !Universally so, not merely in taxation regimes, but in every other- e.g. KAR rules, pending notification, under RERA – see the separate post of y'day !NOTE: It is time now; what needs but remains to be realised , going by wisdom to be gathered from past experience, is that, – it is any such arbitrarily fixed threshold, with no rhyme or reason, that accounts for most of the manipulations indulged in , by vested interests, and having the inevitable potential for corruption, top to bottom, – Reply By swaminathan venkataraman – The Reply = To Add: Reference is to the Post on Facebook, of y'day

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to new GST with respect to hotels, food products, sand, construction materials etc. – Reply By BALAJEE K S – The Reply = Good Article and analysis. Thank you so much Sir – Reply By KASTURI SETHI – The Reply = I am thankful to Dr.Sanjiv Agarwal, Sh.Baalajee K.S., Sh.Swaminathan Venkat Raman for liking my article. K.L.SETHI – Reply By PMR Gowrissankar – The Reply = Sihey cannot collect GSTr, indedd you have analysed the problem of assessees not knowing about existing taxes as they are not coming under tax net. In addition to above, my assessee which is a trust having income of 15 lakhs donation and rent from commercial buildings of ₹ 9 lakhs per annum who is adviced to take GST as the turnover exceeds 20 lakhs. What is the remedy for them as they could not collect GST from teneants who are all small traders? – Reply By KASTURI SETHI – The Reply = Dear Sir, Whether Trust registered under Section 12 AA of Income Tax Act ? – Reply By swaminathan venkataraman – The Reply = An UPDATE,

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e whether to pay under RCm and avail ITC or go for cost addition to goods supplied.The Associates of the Trade and Tax consultants must strongly put this across to governmwnt and to GST Council. – Reply By KASTURI SETHI – The Reply = Sh. Vinay Kunte Ji, Sir, Thrilled to peruse your comments and analytical approach. Thanks for your contribution on the issue. – Reply By Ashok Aggarwal – The Reply = Very nicely analysed article. Earlier small service providers were encouraged by companies because they were exempted and no tax was payable by recipient of service also. Now they will not get clients as the tax will have to be paid under reverse charge mechanism. Moreover the casual tax payer is not exempted and hence practically nobody would be exempted. Regards – Reply By KASTURI SETHI – The Reply = Sh.PMR Gowrissankar Ji, Sir, Section 2(6) of CGST Act defines (6) aggregate turnover means the aggregate value of all taxable supplies (excluding the value of inward supplies on which tax is pay

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gs of the powers that be. SSI units began their exemption journey (if I am not mistaken) way back in the year 1985 [77, 85/85-CE] with exemption limit of 7.5 lakhs without any strings attached of having any SSI registration certificate issued by the Directorate of Industries and this exemption was allowed in the next FY if they had not crossed 7.5 lakhs. Later the SSI notification 175/86-CE saw upheavals in the form of the unwarranted notification 55/92-CE later and the corrective notification 67/92-CE. Let aside the fact that the exemption grew to 15 lakhs and later to 30 lakhs and in the year 1998 to 50 lakhs and continued as mentioned in the tabulation given by you. All through out the emphasis was to give impetus to the SSI units which are the major source of employment in a populated country like ours. Having said that it appears that the ideology behind this SSI exemption remained only lip service and without taking into account the increase in cost of raw materials and the cost

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lt of a few should the entire industry suffer. For the ineptness of the authorities in catching hold of these unscrupulous elements, others should not be held to ransom. Every law comes along with a loophole and only those who are intelligent enough, exploit it. Same would be bound to be replicated in the present scenario too. I sincerely feel that if the government really wants to extend an exemption, it should be without any strings attached. Because if any of the 14 clauses (which the learned author has cited) is violated, the exemption would be denied and the assessee would be required to pay a heavy price. Else remove all exemptions and let all of them vie for business on a similar platform. Thanks, once again, Sethiji for highlighting the hollowness of this exemption. As they say, the attitude seems to be – Heads I win, Tails you lose! Thanks and regards Abhishek Panicker – Reply By CS SANJAY MALHOTRA – The Reply = Dear Sh Kasturi ji,very well defined. Keep it up. – Reply By Abha

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have highlighted the revenue loss to the exchequer. The topic you choose to write is carrying weightage. Thanks Sir once again. – Reply By KASTURI SETHI – The Reply = Sh. Ganeshan Kalyani Ji,. Thanks for devoting your precious time to read and expressing your valuable views. – Reply By Rakesh Garg – The Reply = Well stated, Sethi Ji. A nice and informative article. ThanksWhile making the law, the Government has ignored the Indian conditions and economic scenario. Just take one illustration: If a mechanic or dehari majdoor or piece rate worker (other than employee) comes on paddle-cycle or motor-cycle from Haryana (where he is residing) to Delhi to perform his services (may be at the construction site or to repair the televisions or AC or washing machine or any other activity), he would be making either the inter-State supply from Haryana or would be considered as casual taxable person in Delhi: and in both the cases, in the absence of the threshold limit for registration: would that p

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Goods and Services Tax – GST – By: – Mr. M. GOVINDARAJAN – Dated:- 7-7-2017 – The first LTU was established at Bangalore in 2006 followed by Chennai, Mumbai, Kolkata. LTU functioned as self contained tax administration offices under the Department of Revenue, acting as a single window clearance points for all matters relating to central excise, service tax, income tax. It aimed at reducing tax compliance, cost and delays and bringing about uniformity in the matters of tax/duty determination. Eligible tax payers who opt for assessment in LTU shall be able to file their excise return, direct tax returns and service tax return at such LTUs and for all practical purposes will be assessed to these taxes there under. These units are being equipped with modern facilities and trained manpower to assist the tax payers in all matters relating direct and indirect tax/duty payments, filing of documents and returns, claim of rebates/refunds, settlement of disputes etc., Vide Circular No. 1056/05/2

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e affixed with a sticker as per the following format- Files relating to Commissionerate/Division/Range Present Commissionerate(LTU) GST Commissionerate Commissionerate Commissionerate GLT (or as applicable) Division Group Range Section Section Name of the officer Name of the officer Designation of the officer Designation of the officer Date handed over Date received Signature Signature Common Adjudicating Authority shall be appointed for show cause notices issued by LTUs; Immediate adjudication of pending show cause notices issued on central excise and service tax matters; The cases pending adjudication will be sent to the proposed jurisdictional CGDT Commissionerates for adjudication; If in central excise also a common show cause notice has been issued to a company for a number of its units, the adjudication of the legacy notice may be taken up by the re-organized CGST/Central Excise Commissionerate exercising control over the principal business location of the company which was earli

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7-CE (NT), dated 09.06.2017; The files relating to cases pending in CESTAT spread all over India may be transferred to the respective jurisdictional GST Commissionerate; The cases pending before High Court/Supreme Court may be transferred to the respective jurisdictional Commissionerate of each units; A legal cell may be created and named as LBU (Large Business Unit) in any one GST/Central Excise Commissionerate in the zone where the LTU was situated, which will co-ordinate with the jurisdictional Commissionerates in handling the cases for ease of continuity of interaction with the Departmental Counsel to ensure all legal steps are completed including the change in appellant or the respondent if any; The assessees who were earlier audited by the LTU Audit Commissionerate will now be audited by the respective audit Commissionerate having territorial jurisdiction over the assessee; The show cause notices issued by the Audit Commissionerate but answerable to the proper officer of the Exec

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Goods and Services Tax – Started By: – Yatin Bhopi – Dated:- 7-7-2017 Last Replied Date:- 13-7-2017 – Dear SirWe are manufacturer and having One registration for Four Units in Maharashtra only. Our query is related to reverse charge mechanism in transitional period.Bill dated prior to 1st July 2017 liable to pay service tax (under reverse charge mechanism in Service Tax ) for services like Manpower service, rent-a-cab, works contract etc. paid to supplier from 1st July 2017. Since liability to

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Customs – TRADE FACILITY NO. 07/2017 – Dated:- 7-7-2017 – GOVERNMENT OF INDIA MINISTRY OF FINANCE DEPARTMENT OF REVENUE OFFICE OF THE COMMISSIONER OF CUSTOMS CUSTOM HOUSE, WILLINGDON ISLAND, COCHIN-682009 F. No. C1/03/2016-TU. Cus. Dated: 07.07.2017. TRADE FACILITY NO. 07/2017 Subject: Reg. Kind attention of exporters, importers, Customs Brokers, Steamer Agents and all other stakeholders is drawn to the Central Board of Excise & Customs (CBEC) Circular No. 2/2/2017-GST dated 4th July 2017 (copy enclosed), which addresses the issues related to furnishing of Bond/ Letter of Undertaking for Exports. 2. In view of the various difficulties being faced while furnishing the bond/ letter of undertaking for Exports in FORM GST RFD-II on the co

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Customs – TRADE FACILITY NO. 06/2017 – Dated:- 7-7-2017 – GOVERNMENT OF INDIA MINISTRY OF FINANCE DEPARTMENT OF REVENUE OFFICE OF THE COMMISSIONER OF CUSTOMS CUSTOM HOUSE, WILLINGDON ISLAND, COCHIN-682009 F. No. C1/03/2016-TU. Cus. Dated: 07.07.2017. TRADE FACILITY NO. 06/2017 Subject: Board Instruction No.10/2017 -Customs. dated 06.07.2017 on GSTIN requirement for the purpose of Import and Export- Reg. Kind attention of exporters, importers, Customs Brokers, Steamer Agents and all other stakeholders is drawn to the Central Board of Excise & Customs (CBEC) Instruction No. 10/2017-Customs dated 6th July 2017 (copy enclosed), which addresses the issues relating to the requirement of GSTIN for the importers and exporters at the time of im

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GST – States – 27 T of 2017 – Dated:- 7-7-2017 – Office of the Commissioner of State Tax, (GST) 8th floor, GST Bhavan, Mazgaon, 400010. TRADE CIRCULAR To, ……………………….. ……………………….. No. JC/HQ-II/GST/TDS/Section-51/2017-18/455 Mumbai, Date 07/07/2017 Trade Cir. No. 27 T of 2017 Subject: Tax Deduction at Source as per section 51 of Goods and Services Act, 2017 and procedure to be followed by Departments or establishments of Local Authority, State Government, Local Authority, Governmental agencies. Sir/Gentlemen/Madam The Maharashtra Goods and Services Tax Act, 2017, (hereinafter referred to as the MGST Act ) and the Central Goods and Services Tax Act, 2017, (hereinafter referred to as the CGST Act ) have come in to force with effect from 1st July 2017. The Goods and Services Tax Act envisages the tax on supply of goods and services or both. The provisions of clause

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, in case of a contract where the total value of supply of taxable goods or services or both exceeds ₹ 2.5 Lakh (two lakh and fifty thousand) under a contract shall deduct 1% each for MGST and CGST, from the payment made or credited to the deductee i.e. where the supply is of taxable goods or services or both. The tax so deducted should be paid separately Therefore, every Deductor under MGST and CGST is required to deduct tax at the rate of one per cent each. Thus total deduction would be 2%. 4. It should be kept in mind that for the purpose of calculation of amount of two lakh and fifty thousand rupees, the central tax, state tax, integrated tax or the cess charged separately in the invoice should be excluded. In other words the MGST or the COST or the tax paid under Integrated Goods and Services Tax Act, 2017 or for that matter the cess paid under the provisions of The Goods And Services Tax (Compensation to States) Act, 2017 needs to be excluded while calculation of limit of &

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oice then in such eventuality the Deductor is required to make TDS on the entire value without considering the tax impact provided that the amount covered by said invoice is liable for deduction of TDS. It is clarified that, TDS is liable to be deducted on part payment or full and final payment as the case may be, if a particular contract of supply of goods or services is eligible for deduction of TDS. 8. The procedure for registration of deductor, payment of tax deducted to Government, issuance of TDS Certificates etc. are explained as under. (1) Registration of TDS deductors: (a) Section 24(vi) of CGST/MGST Act, 2017 provide compulsory registration for deductors without any threshold limit. Deductor will be required to get registered within 30 days from coming into operation section 51 of MGST Act and CGST Act. Either PAN or Tax Deduction and Collection Account Number (TAN) is mandatory for obtaining registration as deductor. This registration is compulsory for every Drawing and Disb

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– (a) Every deductor is required to pay electronically to the Government the TDS deducted by him within 10 days from the end of the month in which deduction is made. (b) The deductor would be liable to pay interest as provided under section 50(1) of MGST Act and CGST Act, if the tax deducted is not deposited within prescribed time. (3) Filing of return by deductors – (a) Deductor will be required to file a return in Form GSTR-7 within 10 days from the end of month in which deduction is made. If in any month there is no deduction on account of TDS, deductor is not required to file return for that month. (b) The details of tax deducted at source furnished by the deductor in Form GSTR-7 shall be made available to each supplier in Part C of Form GSTR-2A electronically through the common portal and the said supplier may include the same in Form GSTR-2 of the supplier (deductee). The supplier can take credit of this amount in his electronic cash register and use the same for payment of tax

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he Government by deductor will be refunded as provided under section 51 (8) of the CGST or the MGST Act, 2017. (b) However, if the deducted amount is already credited to electronic cash ledger of the said supplier, then same shall not be refunded. (7) Transitional provision in respect of TDS – (a) As per the section 142(13) of the MGST Act where supplier has made sale of any goods before the appointed day i.e. on or 30th June 2017 and invoice has also been issued on or before the 30th June 2017 in such circumstances the TDS provisions under GST Act will not be applicable despite the fact that the payment in respect of said sale is received on or after the 1st July 2017. (b) In other words, in aforesaid eventualities, the TDS provisions under MGST, CGST or IGST, will not be applicable. 9. This circular is clarificatory in nature and cannot be made use of for interpretation of provisions of law. If any member of trade has any doubt, he may refer the matter to this office for further clar

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GST – States – 06/2017 – Dated:- 7-7-2017 – OFFICE OF THE COMMISSIONER OF BHAWAN No. CT/COMP-49/2013/23 (Circular No. 06/2017) Dated Dispur, the 7th July, 2017 Sub : Guidelines for online issuance of GST permit and Transit Passes. etc. for facilitating movement of goods Whereas in pursuance of provision of section 68 of the Assam Goods and Services Tax Act, 2017 read with the provision of rule 138 of the Assam Goods and Services Tax Rules, 2017, the Government of Assam has approved the following electronically obtained documents required to be carried by a person in-charge of a conveyance: (a) GST Inward Permit : for importation and transportation of taxable goods into the State of Assam; (b) GST Outward Permit : for inter-State supply of taxable goods from Assam to other State; (c) GST Permit for intra-State supply : for intra-State supply of taxable goods within Assam,; (d) Transit Passes : for transportation of taxable goods through the State of Assam. And whereas the Commissionera

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x assessees who have migrated to GST and who do not have User ID and Password issued under the existing law for availing the e-services shall first create dealer s online profile on www.tax.assam.gov.in to obtain user ID and password for online services from the jurisdictional Unit office of State Government. 3. Such registered person shall create online profile, following the steps mentioned below: (i) Log in http://www.tax.assam.gov.in (ii) Select e- Services (iii) Select GST Permit (iv) Select New User (v) Select Registered Profile Creation (vi) Enter GSTIN (vii) Fill the necessary information as per specified format (viii) On submission of information, password will be mailed to the registered e- mail id of the dealer. Dealer needs to login and change the password by logging onto the site. 4. The registered persons having the User Id and password shall: i) log in http://www.tax.assam.gov.in ii) Select e- Services iii) Select GST permit iv) Log in by using User id and Password v) Se

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gnment of goods for personal use/consumption shall create online profile following the steps mentioned below: (i) Log in http://www.tax.assam.gov.in (ii) Select e- Services (iii) Select GST Permit (iv) Select New User (v) Select Unregistered Profile Creation (vii) Fill the necessary information as per specified format (vii) On filling of the required information, OTP will be sent to his given mobile no. (viii) After OTP verification, password shall be sent to his given e-mail address. 6. The un-registered persons having the User Id and password shall: i) Log in http://www.tax.assam.gov.in ii) Select e- Services iii) Select link GST permit iv) Log in by using User id and Password v) Select Online GST Permit Request option vi) A Format will be displayed with three radio buttons: Inward Outward Intra State vii) Select the required option to the above and save viii) Unregistered person shall make requisition by filling some mandatory fields such as description of goods and its quantity by

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Assam VAT Act, 2003, ii. In case of Unregistered Transporter : user ID obtained from such unregistered transporter and will select the transporter name from the dropdown list, and iii. In case of self transportation: The dealer must possess vehicle data entry option from the system. 8. In case Registered persons intend to transport goods though Unregistered Transporter : a) The concerned Unregistered Transporter has to apply for user ID and password for Online Vehicle Data Entry , which can be obtained online. After generation of user ID and password for 'Online Vehicle Data Entry , the concerned Unregistered Transporter has to pass on the user ID and the name of the Transporter to the concerned Registered persons for generation of the Online GST Permit . b) The concerned Registered person will select the Unregistered Transporter option and will select the Transporter name/user ID from the dropdown list for generation of online GST Permit. 9. In case of both Registered and Unregis

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be used as supporting documents with some changes in the format and requirement of forms of importing state shall not be required but valid GSTIN of both consignor and consignee is to be provided along with valid invoices. GST Transit Pass is to be obtained from Entry point Office by registered transporter having registered number under VAT or having GSTIN. Transit Passes issued by the Entry point office need to be endorsed at Exit point office and need to be surrendered the endorsed Transit Passes at Entry point office within 30 days of its issue. 12. In case of intra-state movement, 'GST Permit for intra-State supply' is not mandatory for consignment of taxable goods i) which are transported within the same municipal area with a valid document, OR ii) If the invoice value is less than ₹ 50, 000/-. Invoice covering the transaction is sufficient document for conveyance of such consignments. However, if a transporter carries multiple consignments whose composite value is

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GST – States – F.No.12(46)FD/Tax/2017-Pt-II-64 – Dated:- 7-7-2017 – GOVERNMENT OF RAJASTHAN FINANCE DEPARTMENT (TAX DIVISION) NOTIFICATION Jaipur, dated: July 07, 2017 In exercise of the powers conferred by section 164 of the Rajasthan Goods and Services Tax Act, 2017 (Act No. 9 of 2017), the State Government hereby makes the following rules further to amend the Rajasthan Goods and Services Tax Rules, 2017, namely:- 1. Short title and commencement.- (1) These rules may be called the Rajasthan Goods and Services Tax (Third Amendment) Rules, 2017. (2) They shall be deemed to have come into force with effect from the 1st day of July, 2017. 2. Amendment of rule 44.- In rule 44 of the Rajasthan Goods and Services Tax Rules, 2017, hereinafter referred to as the said rules,- (i) in sub-rule (2), for the existing expression integrated tax and State tax , the expression central tax, State tax, Union territory tax and integrated tax shall be substituted; and (ii) in sub-rule (6), for the existi

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tional Commissioner, binding himself to pay the tax due along with the interest specified under sub-section (1) of section 50 within a period of,- (a) fifteen days after the expiry of three months from the date of issue of the invoice for export, if the goods are not exported out of India; or (b) fifteen days after the expiry of one year, or such further period as may be allowed by the Commissioner, from the date of issue of the invoice for export, if the payment of such services is not received by the exporter in convertible foreign exchange. (2) The details of the export invoices contained in FORM GSTR-1 furnished on the common portal shall be electronically transmitted to the system designated by Customs and a confirmation that the goods covered by the said invoices have been exported out of India shall be electronically transmitted to the common portal from the said system. (3) Where the goods are not exported within the time specified in sub-rule (1) and the registered person fail

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isting expression- provisions of and before the existing expression sub-section (14) of section 142 , the expression section 141 or shall be inserted; 6. Insertion of new Chapters.- After the existing rule 138 and before existing Form GST CMP-01 of the said rules, the following new Chapters XVIIl to XIX, shall be inserted, namely:- Chapter XVII Inspection, Search and Seizure 139. Inspection, search and seizure.- (1) Where the proper officer not below the rank of a Joint Commissioner has reasons to believe that a place of business or any other place is to be visited for the purposes of inspection or search or, as the case may be, seizure in accordance with the provisions of section 67, he shall issue an authorisation in FORM GST INS-01 authorising any other officer subordinate to him to conduct the inspection or search or, as the case may be, seizure of goods, documents, books or things liable to confiscation. (2) Where any goods, documents, books or things are liable for seizure under

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r model, where applicable, and get it signed by the person from whom such goods or documents or books or things are seized. 140. Bond and security for release of seized goods.- (1)The seized goods may be released on a provisional basis upon execution of a bond for the value of the goods in FORM GST INS-04 and furnishing of a security in the form of a bank guarantee equivalent to the amount of applicable tax, interest and penalty payable. Explanation: For the purposes of the rules under the provisions of this Chapter, the applicable tax shall include central tax and State tax or central tax and the Union territory tax, as the case may be and the cess, if any, payable under the Goods and Services Tax (Compensation to States) Act, 2017 (Central Act No, 15 of 2017). (2) In case the person to whom the goods were released provisionally fails to produce the goods at the appointed date and place indicated by the proper officer, the security shall be encashed and adjusted against the tax, inter

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he,- (a) notice under sub-section (1) of section 73 or sub-section (1) of section 74 or subsection (2) of section 76, a summary thereof electronically in FORM GST DRC-01, (b) statement under sub-section (3) of section 73 or sub-section (3) of section 74, a summary thereof electronically in FORM GST DRC-02, specifying therein the details of the amount payable. (2) Where, before the service of notice or statement, the person chargeable with tax makes payment of the tax and interest in accordance with the provisions of sub-section (5) of section 73 or, as the case may be, tax, interest and penalty in accordance with the provisions of sub-section (5) of section 74, he shall inform the proper officer of such payment in FORM GST DRC-03 and the proper officer shall issue an acknowledgement, accepting the payment made by the said person in FORM GST DRC-04. (3) Where the person chargeable with tax makes payment of tax and interest under sub-section (8) of section 73 or, as the case may be, tax,

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143. Rccovery by deduction from any money owed.- Where any amount payable by a person, hereafter referred to in this rule as the defaulter , to the Government under any of the provisions of the Act or the rules made thereunder is not paid, the proper officer may require, in FORM GST DRC-09, a specified officer to deduct the amount from any money owing to such defaulter in accordance with the provisions of clause (a) of sub-section (1) of section 79, Explanation: For the purposes of this rule, specified officer shall mean any officer of the Central Government or a State Government or the Government of a Union territory or a local authority, or of a Board or Corporation or a company owned or controlled, wholly or partly, by the Central Government or a State Government or the Government of a Union territory or a local authority. 144. Recovery by sale of goods under the control of proper officer.- (1) Where any amount due from a defaulter is to be recovered by selling goods belonging to su

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ed in the manner specified by such officer, to make the bidders eligible to participate in the auction, which may be returned to the unsuccessful bidders, forfeited in case the successful bidder fails to make the payment of the full amount, as the case may be. (5) The proper officer shall issue a notice to the successful bidder in FORM GST DRC-11 requiring him to make the payment within a period of fifteen days from the date of auction. On payment of the full bid amount, the proper officer shall transfer the possession of the said goods to the successful bidder and issue a certificate in FORM GST DRC-12. (6) Where the defaulter pays the amount under recovery, including any expenses incurred on the process of recovery, before the issue of the notice under sub-rule (2), the proper officer shall cancel the process of auction and release the goods. (7) The proper officer shall cancel the process and proceed for re-auction where no bid is received or the auction is considered to be non-comp

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ral Act No. 5 of 1908), execute the attached decree, and credit the net proceeds for settlement of the amount recoverable. 147. Recovery by sale of movable or immovable property.- (1) The proper officer shall prepare a list of movable and immovable property belonging to the defaulter, estimate their value as per the prevalent market price and issue an order of attachment or distraint and a notice for sale in FORM GST DRC-16 prohibiting any transaction with regard to such movable and immovable property as may be required for the recovery of the amount due: Provided that the attachment of any property in a debt not secured by a negotiable instrument, a share in a corporation, or other movable property not in the possession of the defaulter except for property deposited in, or in the custody of any Court, shall be attached in the manner provided in rule 151. (2) The proper officer shall send a copy of the order of attachment or distraint to the concerned Revenue Authority or Transport Aut

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sold is a negotiable instrument or a share in a corporation, the proper officer may, instead of selling it by public auction, sell such instrument or a share through a broker and the said broker shall deposit to the Government so much of the proceeds of such sale, reduced by his commission, as may be required for the discharge of the amount under recovery and pay the amount remaining, if any, to the owner of such instrument or a share, (6) The proper officer may specify the amount of pre-bid deposit to be furnished in the manner specified by such officer, to make the bidders eligible to participate in the auction, which may be returned to the unsuccessful bidders or, forfeited in case the successful bidder fails to make the payment of the full amount, as the case may be. (7) The last day for the submission of the bid or the date of the auction shall not be earlier than fifteen days from the date of issue of the notice referred to in sub-rule (4): Provided that where the goods are of p

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said date, it was in his possession, not on his own account or as his own property, but on account of or in trust for any other person, or partly on his own account and partly on account of some other person, the proper officer shall make an order releasing the properly, wholly or to such extent as he thinks fit, from attachment or distraint. (11) Where the proper officer is satisfied that the property was, on the said date, in the possession of the defaulter as his own property and not on account of any other person, or was in the possession of some other person in trust for him, or in the occupancy of a tenant or other person paying rent to him, the proper officer shall reject the claim and proceed with the process of sale through auction. (12) The proper officer shall issue a notice to the successful bidder in FORM GST DRC-11 requiring him to make the payment within a period of fifteen days from the date of such notice and after the said payment is made, he shall issue a certificat

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the auction is considered to be non-competitive due to lack of adequate participation or due to low bids. 148. Prohibition against bidding or purchase by officer.- No officer or other person having any duty to perform in connection with any sale under the provisions of this Chapter shall, either directly or indirectly, bid for, acquire or attempt to acquire any interest in the property sold. 149, Prohibition against sale on holidays.- No sale under the rules under the provision of this chapter shall take place on a Sunday or other general holidays recognized by the Government or on any day which has been notified by the Government to be a holiday for the area in which the sale is to take place, 150. Assistance by police.- The proper officer may seek such assistance from the officer-in-charge of the jurisdictional police station as may be necessary in the discharge of his duties and the said officer-in-charge shall depute sufficient number of police officers for providing such assistanc

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of other movable property, to the person in possession of the same. (3) A debtor, prohibited under clause (a) of sub-rule (1), may pay the amount of his debt to the proper officer, and such payment shall be deemed as paid to the defaulter. 152. Attachment of property in custody of courts or Public Officer.- Where the property to be attached is in the custody of any court or Public Officer, the proper officer shall send the order of attachment to such court or officer, requesting that such property, and any interest or dividend becoming payable thereon, may be held till the recovery of the amount payable. 153. Attachment of interest in partnership.- (1) Where the property to be attached consists of an interest of the defaulter, being a partner, in the partnership property, the proper officer may make an order charging the share of such partner in the partnership property and profits with payment of the amount due under the certificate, and may, by the same or subsequent order, appoint a

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Services Tax Act, 2017 or any of the State Goods and Services Tax Act, 2017 and the rules made thereunder; and (d) any balance, be paid to the defaulter, 155. Recovery through land revenue authority.- Where an amount is to be recovered in accordance with the provisions of clause (e) of sub-section (1) of section 79, the proper officer shall send a certificate to the Collector or Deputy Commissioner of the district or any other officer authorised in this behalf in FORM GST DRC-18 to recover from the person concerned, the amount specified in the certificate as if it were an arrear of land revenue. 156. Recovery through court.- Where an amount is to be recovered as if it were a fine imposed under the Code of Criminal Procedure, 1973, the proper officer shall make an application before the appropriate Magistrate in accordance with the provisions of clause (f) of sub-section (1) of section 79 in FORM GST DRC-19 to recover from the person concerned, the amount specified thereunder as if it w

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t. (3) The facility referred to in sub-rule (2) shall not be allowed where,- (a) the taxable person has already defaulted on the payment of any amount under the Act or the Integrated Goods and Services Tax Act, 2017 or the Union Territory Goods and Services Tax Act, 2017 or any of the State Goods and Services Tax Act, 2017, for which the recovery process is on; (b) the taxable person has not been allowed to make payment in instalments in the preceding financial year under the Act or the Integrated Goods and Services Tax Act, 2017 or the Union Territory Goods and Services Tax Act, 2017 or any of the State Goods and Services Tax Act, 2017; (c) the amount for which instalment facility is sought is less than twenty-five thousand rupees. 159. Provisional attachment of property.- (1) Where the Commissioner decides to attach any property, including bank account in accordance with the provisions of section 83, he shall pass an order in FORM GST DRC-22 to that effect mentioning therein, the det

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y the taxable person. (5) Any person whose property is attached may, within seven days of the attachment under sub-rule (1), file an objection to the effect that the property attached was or is not liable to attachment, and the Commissioner may, after affording an opportunity of being heard to the person filing the objection, release the said property by an order in FORM GST DRC-23. (6) The Commissioner may, upon being satisfied that the property was, or is no longer liable for attachment, release such property by issuing an order in FORM GST DRC- 23. 160. Recovery from company in liquidation.- Where the company is under liquidation as specified in section 88, the Commissioner shall notify the liquidator for the recovery of any amount representing tax, interest, penalty or any other amount due under the Act in FORM GST DRC-24, 161. Continuation of certain recovery proceedings.- The order for the reduction or enhancement of any demand under section 84 shall be issued in FORM GST DRC-25.

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on. (4) The application shall not be decided under sub-rule (3) without affording an opportunity of being heard to the applicant and recording the grounds of such rejection. (5) The application shall not be allowed unless the tax, interest and penalty liable to be paid have been paid in the case for which the application has been made. (6) The applicant shall, within a period of thirty days from the date of the receipt of the order under sub-rule (3), pay the compounding amount as ordered by the Commissioner and shall furnish the proof of such payment to him. (7) In case the applicant fails to pay the compounding amount within the time specified in sub-rule (6), the order made under sub-rule (3) shall be vitiated and be void. (8) Immunity granted to a person under sub-rule (3) may, at any time, be withdrawn by the Commissioner, if he is satisfied that such person had, in the course of the compounding proceedings, concealed any material particulars or had given false evidence. Thereupon

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Goods and Services Tax – 1/1/2017-IGST – Dated:- 7-7-2017 – Circular No. 1/1/2017-IGST F. No. 354/119/2017 -TRU (Pt) Government of India Ministry of Finance Department of Revenue Tax Research Unit North Block, New Delhi Dated the 7th of July, 2017 To, The Principal Chief Commissioner/Chief Commissioners/ Principal Commissioner/ Commissioner of Central Tax (All) / Director General of Systems Subject: Clarification on Inter-state movement of various modes of conveyance, carrying goods or passengers or for repairs and maintenance- regarding. The issue relating to levy of IGST exemption on inter-state movement of various modes of conveyance, carrying goods or passengers or for repairs and maintenance, between distinct persons as specified in s

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persons for the purposes of this Act. c) Schedule I to the said Act specifies situations where activities are to be treated as supply even if made without consideration which also includes supply of goods or services or both between related persons or between distinct persons as specified in section 25, when made in the course or furtherance of business d) Section 7 (2) envisages that activities or transactions undertaken by the Central Government, a State Government or any local authority in which they are engaged as public authorities, as may be notified by the Government on the recommendations of the Council, shall be treated neither as a supply of goods nor a supply of services. 3. Against the above background, the issue of inter-state

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Goods and Services Tax – 4/4/2017 – Dated:- 7-7-2017 – Rescinded vide Circular dated 4-10-2017 Circular No. 4/4/2017-GST F. No. 349/82/2017-GST Government of India Ministry of Finance Department of Revenue Central Board of Excise and Customs (GST Policy Wing) *** New Delhi, the 7th July, 2017 To, The Principal Chief Commissioners / Chief Commissioners / Principal Commissioners/ Commissioners of Central Tax (All) Madam/Sir, Subject: Issues related to Bond/Letter of Undertaking for exports without payment of integrated tax – Reg. Various communications have been received from the field formations and exporters that difficulties are being faced in complying with the procedure prescribed for making exports of goods and services without payment of integrated tax with respect to furnishing of bonds/Letter of Undertaking. Therefore, in exercise of powers conferred under section 168 (1) of the Central Goods and Services Tax Act, 2017, for the purpose of uniformity in the implementation of the

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(separate bond for each consignment / export). It is observed consignment wise bond would be a significant compliance burden on the exporters. It is directedthat the exporters shall furnish a running bond, in case he is required to furnish a bond, in FORM GST RFD -11. The bond would cover the amount of tax involved in the export based on estimated tax liability as assessed by the exporter himself. The exporter shall ensure that the outstanding tax liability on exports is within the bond amount. In case the bond amount is insufficient to cover the tax liability in yet to be completed exports, the exporter shall furnish a fresh bond to cover such liability. 5. FORM RFD -11 under rule 96A of the CGST Rules requires furnishing a bank guarantee with bond. Field formations have requested for clarity on the amount of bank guarantee as a security for the bond. In this regard it is directed that the jurisdictional Commissioner may decide about the amount of bank guarantee depending upon the tr

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ate Tax so directs, by general instruction, to exporter, the Bond/LUT in all cases be accepted by Central tax officer till such time the said administrative mechanism is implemented. Central Tax officers are directed to take every step to facilitate the exporters. 8. Attention is further invited to circular No. 26/2017 – Customs dated 1st July 2017, vide which it has been clarified that the existing practice of sealing the container with a bottle seal under Central Excise supervision or otherwise would continue till 01st September, 2017. Such sealing shall be done under the supervision of the officer having physical jurisdiction over the place of business where the sealing is being done. A copy of the sealing report would be forwarded to the Deputy/Assistant Commissioner having jurisdiction over the principal place of business. 9. These instructions shall apply to exports on or after 1st July, 2017. It is requested that suitable trade notices may be issued to publicize the contents of

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GST – 16/2017 – Dated:- 7-7-2017 – Superseded vide Notification No. 37/2017 Dated 04-10-2017 Government of India Ministry of Finance Department of Revenue Central Board of Excise and Customs Notification No. 16/2017 – Central Tax New Delhi, the 7th July, 2017 G.S.R. 848 E.:- In exercise of the powers conferred by sub-rule (5) of rule 96A of the Central Goods and Services Tax Rules, 2017, the Central Board of Excise and Customs hereby specifies the conditions and safeguards for the registered person who intends to supply goods or services for export without payment of integrated tax, for furnishing a Letter of Undertaking in place of a Bond. i. The following registered person shall be eligible for submission of Letter of Undertaking in plac

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Goods and Services Tax – Started By: – ramniranjan kandoi – Dated:- 6-7-2017 Last Replied Date:- 16-7-2017 – Dear sir, 1. Please confirm whether one can take credit of Service Tax paid under RCM for payment made after 01st July 2017. as I hv not seen anywhere nor in TRAN-01 2. Also reg. Material duty(Local or Imported ) paid before 30.06.2017 & same is recd. on or after 01.07.2017 as TRAN 01 also does not contain details anywhere. Query. How to take credit. – Reply By Ramesh Kothari – The R

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GST HS Code – Goods and Services Tax – Started By: – Kishan Barai – Dated:- 6-7-2017 Last Replied Date:- 13-7-2017 – Infrared motion sensor switch GST HS Code ? – Reply By KASTURI SETHI – The Reply =

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Goods and Services Tax – Started By: – Niladrinath Rath – Dated:- 6-7-2017 Last Replied Date:- 21-10-2017 – Sir, Kindly help me in this regards. As per the tender process of the works, the contractor has purchase tender paper from this office, before GSt, they will give 5% vat on the papaer cost. NOw as per the GST rule what is the rate of the GSt on the cost of the tender paper. – Reply By MARIAPPAN GOVINDARAJAN – The Reply = Many views are there. Some say 5%; some say 12%; some say 18%. To av

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Goods and Services Tax – GST – Dated:- 6-7-2017 – Q 1. What is composition levy under GST? Ans. The composition levy is an alternative method of levy of tax designed for small taxpayers whose turnover is up to ₹ 75 lakhs ( ₹ 50 lakhs in case of few States). The objective of composition scheme is to bring simplicity and to reduce the compliance cost for the small taxpayers. Moreover, it is optional and the eligible person opting to pay tax under this scheme can pay tax at a prescribed percentage of his turnover every quarter, instead of paying tax at normal rate. Q 2. What is the specified rate of composition levy? S. No. Category of Registered person Rate of Tax 1 Manufacturers, other than manufacturers of such goods as may be notified by the Government (Ice cream, Pan Masala, Tobbacco prodcuts etc.) 2% ( 1% Central tax plus 1% State tax) of the turnover 2 Restaurant Services 5% ( 2.5% Central tax plus 2.5% SGST) of the turnover 3 Traders or any other supplier eligible for

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ervcies from unregistered supplier unless he has paid GST on such goods or services on reverse charge basis; d) supplier of services, other than restaurant service; e) persons supplying goods which are not taxable under GST law; f) persons making any inter-State outward supplies of goods; g) suppliers making any supply of goods through an electronic commerce operator who is required to collect tax at source under section 52; and h) a manufacturer of following goods: S. No. Classification (Tariff item/ Chapter) Descriptions 1 2105 00 00 Ice cream and other edible ice, whether or not containing cocoa 2 2106 90 20 Pan masala 3 24 Tobacco and manufactured tobacco substitutes Note: There is no restriction on procuring goods from inter-state suppliers by persons opting for the composition scheme Q 5. When will a person opting for composition levy pay tax? Ans. A person opting for composition levy will have to pay tax on quarterly basis before 18th of the month succeeding the quarter during w

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ithdrawal containing the details of such stock held in FORM GST ITC-01 on the common portal. Q 7. How will the aggregate turnover be computed for the purpose of composition? Ans. Aggregate turnover will be computed on the basis of turnover on an all India basis and will include value of all taxable supplies, exempt supplies and exports made by all persons with same PAN, but would exclude inward supplies under reverse charge as well as central, State/Union Territory and Integrated taxes and cess. Q 8. Can a person who has opted to pay tax under the composition scheme avail Input Tax Credit on his inward supplies? Ans. No. A taxable person opting to pay tax under the composition scheme is out of the credit chain. He cannot take credit on his input supplies. When he switch over from composition scheme to normal scheme, eligible credit on the date of transition would be allowed (refer Q 6 above). Q 9. Can a registered person, who purchases goods from a taxable person paying tax under the c

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e or Union territory, inward supplies of goods or services or both and tax payable. Q 13. A person opting to pay tax under the composition scheme receives inputs/input services from an unregistered person. Will the composition taxpayer have to pay GST under reverse charge? If yes, in what manner? Ans. Yes. Tax will have to be paid on such supplies by the composition taxpayer under reverse charge mechanism. The tax can be paid by the 18th day of the month succeeding the quarter in which such supplies were received. The information relating to such supplies should be shown by the composition taxpayer in Table 4 of return in FORM GSTR -4. Q 14. What is the form in which an intimation for payment of tax under composition scheme needs to be made by the taxable person? Ans. The intimation is to be filed electronically in FORM GST CMP- 01 or FORM GST CMP- 02. Q 15. A person registered under existing law (Central Excise/Service Tax/VAT) and who has been granted registration on a provisional ba

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plication for fresh registration under GST opt for composition levy at the time of making application for registration? Ans. Yes. Such persons can give the option to pay tax under the composition scheme in Part B of FORM GST REG-01. This will be considered as an intimation to pay tax under the composition scheme. Q 18. Can the option to pay tax under composition levy be exercised at any time of the year? Ans. No. The option is required to be given electronically in FORM GST CMP-02, prior to the commencement of the relevant financial year. Q 19. Can a person who has already obtained registration, opt for payment under composition levy? If so, how? Ans. Yes. Such persons need to give intimation electronically in Form GST CMP-02 but from beginning of the financial year only. Q 20. What are the compliances from ITC reversal point of view that need to be made by a person opting for composition levy? Ans. The registered person opting to pay tax under composition scheme is required to pay an

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tely for integrated tax, central tax and state tax/Union territory tax. The payment can be made by debiting electronic credit ledger, if there is sufficient balance in the said ledger, or by debiting electronic cash ledger.The balance , if any in the electronic credit ledger would lapse. Such persons also have to furnish the statement in FORM GST ITC-03 which is a declaration for intimation of ITC reversal/payment of tax on inputs held in stock, inputs contained in semi-finished and finished goods held in stock and capital goods under Section 18(4) of the CGST Act, 2017 within a period of sixty days from the commencement of the relevant financial year. Q 21. In case a person has registration in multiple states? Can he opt for payment of tax under composition levy only in one state and not in other state? Ans. The option to pay tax under composition scheme will have to be exercised for all States. Q 22. What is the effective date of composition levy? Ans. There can be three situations:

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shall mention the words composition taxable person, not eligible to collect tax on supplies at the top of the bill of supply issued by him; and b) he shall mention the words composition taxable person on every notice or signboard displayed at a prominent place at his principal place of business and at every additional place or places of business. Q 24. What is the validity of composition levy? Ans. The option to pay tax under composition levy would remain valid so long as conditions mentioned in section 10 of the CGST Act, 2017 and Rule 3 to 5 of the CGST Rules, 2017 remain satisfied. Q 25. Can a person paying tax under composition levy, withdraw voluntarily from the scheme? If so, how? Ans. Yes. The registered person who intends to withdraw from the composition scheme can file a duly signed or verified application in FORM GST CMP-04. Every person who has filed an application for withdrawal from the composition scheme, may electronically furnish, a statement in FORM GST ITC-01 containi

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e option to pay tax under the composition scheme from the date of the option or from the date of the event concerning such contravention, as the case may be. Q 27. In case the option to pay tax under composition levy is denied by the proper officer, can the person avail ITC on stock after denial? Ans. Yes. ITC can be availed by filing, a statement in FORM GST ITC-01 (containing details of the stock of inputs and inputs contained in semi-finished or finished goods held in stock) by him on the date on which the option is denied as per order in FORM GST CMP-07, within a period of thirty days from the order. Q 28. Will withdrawal intimation in any one place be applicable to all places of business? Ans. Yes. Any intimation or application for withdrawal in respect of any place of business in any State or Union territory, shall be deemed to be an intimation in respect of all other places of business registered on the same Permanent Account Number. Q 30. Can supplier of Services opt for compos

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Goods and Services Tax – Started By: – Mehak Malhotra – Dated:- 6-7-2017 Last Replied Date:- 24-8-2017 – GST excludes sale of land from its ambit ?But Transferable Development Rights are right to the use of land for the development. Is this covered under gst ?Secondly,If this is covered under GST will this be eligible for Credit ? – Reply By KASTURI SETHI – The Reply = Dear Querist, Yes TDRs are taxable under GST. These fall under declared supplies mentioned in Schedule-II of Section 7 CGST Act

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Goods and Services Tax – GST – Dated:- 6-7-2017 – Erode (TN), Jul 6 (PTI) Textile industries here today commenced a six-day strike demanding abolition of GST on textile goods. More than 10,000 power looms, 5,000 textile retail shops, 400 textile bleaching, dyeing and printing units participated in the strike, industry sources said. After GST was rolled out, Erode Handloom Cloth Merchants Association, Power Loom weavers Association, Bleaching and dyeing units had made a representation to the Cen

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Goods and Services Tax – GST – Dated:- 6-7-2017 – New Delhi, Jul 6 (PTI) Providing relief to SEZs, the government has exempted goods imported by units or developers of special economic zones from integrated goods and services tax (IGST). The central government…hereby exempts all goods imported by a unit or a developer in the Special Economic Zone (SEZ) for authorised operations, from the whole of the integrated tax leviable thereon under…the Customs Tariff Act, 1975 read with section 5 of t

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Goods and Services Tax – Started By: – sanjeev jadhav – Dated:- 6-7-2017 Last Replied Date:- 7-7-2017 – Dear Experts, We are manufacturer of Other Cast articles of Iron / Steel / St-Steel falling under HSN Code No. 73259910 / 73259920 / 73259930 respectively. For some of castings we are making proof machine and finish Machining. We are in confusion about HSN Code for Machined Castings. Can you please help me which HS code will be applicable for Machined castings and rate of GST for machined castings. – Reply By KASTURI SETHI – The Reply = Above Chapter/Heading/Sub-heading Notes/HSN codes are correct for machined castings. Regarding GST rates of machined castings, these are still to be finalized. Checked all sites. These codes for rates are

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ght on the issue. Thanks for his efforts. There is no doubt about classification of the goods i.e. machined castings. Doubt about GST rate arises because all relevant websites (including CBEC's site) misses only 7325 99 10, 73259920, 73259930. I mean to say only 73.25 is missing everywhere. Specific entry is required.In such a situation, the words Not elsewhere specified may not be applicable and may not serve the purpose. Still it is not clear-cut picture. – Reply By MADAN RAHEJA – The Reply = In my opinion, legal provisions are very clear. After 1st July, 2017, when GST became operative, it cannot be said that rates of tax on any goods has not yet been decided. Under Section 7 of IGST Act and Section 9 of CGST Act, on the recommendati

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Kerala CM warns traders jacking up prices post-GST – Goods and Services Tax – GST – Dated:- 6-7-2017 – Thiruvananthapuram, Jul 5 (PTI) The Kerala government today said stern action will be taken against those hiking prices of commodities following the launch of Goods and Services Tax (GST). Chief Minister Pinarayi Vijayan said the government viewed the present increase in prices of commodities very seriously. The government has already established a mechanism to file complaints on increase of prices of commodities, he said in a press release. He added that Kerala has already raised the issue before the Centre. Earlier, state Finance Minister T M Thomas Isaac urged the central government to take steps to check tendency in trade and business

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Goods and Services Tax – GST – Dated:- 6-7-2017 – New Delhi, Jul 5 (PTI) With J-K assembly adopting the SGST bill, Finance Minister Arun Jaitley today said it will benefit the consumers by making goods cheaper and increase revenue for the state. In a series of tweets, the minister congratulated the people of Jammu and Kashmir for passage of the bill by the state assembly. Jammu and Kashmir is the last state to pass the SGST bill. The Goods and Services Tax has already came into effect from July

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Goods and Services Tax – GST – By: – Mr. M. GOVINDARAJAN – Dated:- 6-7-2017 Last Replied Date:- 14-7-2017 – Compoundable offence Compoundable offences are those offences where, the complainant (one who has filed the case, i.e. the victim), enter into a compromise, and agrees to have the charges dropped against the accused. It consisted of a prosecutor or victim of an offence accepting anything of value under an agreement not to prosecute, or to hamper the prosecution of, a felony. To compound , in this context, means to come to a settlement or agreement. . Under the common law, compounding a felony was punishable as a misdemeanor. It is a short cut method to avoid litigation. In case of compounding, the accused need not appear personally and can be discharged on payment of composition fee which cannot be more than the maximum fine leviable under the relevant provision. All tax laws, company laws are having the provisions for compounding of offence. The GST is having no exception to th

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oth without issue of any invoice, in violation of the provisions of this Act or the rules made there under, with the intention to evade tax; (b) issues any invoice or bill without supply of goods or services or both in violation of the provisions of this Act, or the rules made there under leading to wrongful availment or utilization of input tax credit or refund of tax; (c) avails input tax credit using such invoice or bill referred to in clause (b); (d) collects any amount as tax but fails to pay the same to the Government beyond a period of three months from the date on which such payment becomes due; (e) evades tax, fraudulently avails input tax credit or fraudulently obtains refund and where such offence is not covered under clauses (a) to (d); (f) falsifies or substitutes financial records or produces fake accounts or documents or furnishes any false information with an intention to evade payment of tax due under this Act; a person who has been allowed to compound once in respect

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; [Section 132(1)(k); any other class of persons or offences as may be prescribed. Any compounding allowed shall not affect the proceedings, if any, instituted under any other law. Compounding shall be allowed only after making payment of tax, interest and penalty involved in such offences. Section 139(2) provides that the amount for compounding of offences shall be such as may be prescribed, subject to the minimum amount not being less than ₹ 10,000/- or 50% of the tax involved, whichever is higher and the maximum amount not being less than ₹ 30,000/- or 150% of the tax whichever is higher. Section 139(3) provides that on payment of such compounding amount no further proceedings shall be initiated under this Act against the accused person in respect of the same offence and any criminal proceedings, if already initiated in respect of the said offence, shall stand abated. Procedure Rule 162 provides the procedure for compounding of offences. The following is the procedure- A

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able to be paid have been paid in the case for which the application has been made; The applicant shall pay the compounding amount as ordered by the Commissioner within a period of 30 days from the date of receipt of the order and furnish the proof of such payment to the Commissioner; If the applicant fails to pay the compounding amount within 30 days from the date of receipt of the order, the order shall be vitiated and be void; The immunity granted to the applicant may be withdrawn at any time by the Commissioner if he is satisfied that the such person had, in the course of the compounding proceedings, concealed any material particulars or had given false evidence; Then the applicant may be tried for the offence with respect to which immunity was grantedor for any other offence that appears to have been committed by him in connection with the compounding proceedings and the provisions of this Act shall apply as if no such immunity had been granted. – Reply By KASTURI SETHI – The Repl

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Goods and Services Tax – GST – By: – Alok Agarwal – Dated:- 6-7-2017 Last Replied Date:- 23-8-2017 – Reverse charge on specified Goods & Services Section 9(3) of CGST/SGST acts provides that, Government may specify categories of supply of goods or services which shall be paid on reverse charge basis i.e. tax shall be paid by the recipient of such goods or services. In this regards two notifications have been issued providing the list of goods and services, wherein the purchaser/recipient has the liability to pay GST. Goods subject to reverse charge – Notification no. 04/2017 dated 28th June 2017 Description of supply of Goods Supplier of goods Supplier of Goods Recipient of supply Cashew nuts, not shelled or peeled Agriculturist Any registered person Bidi wrapper leaves (tendu) Agriculturist Any registered person Tobacco leaves Agriculturist Any registered person Silk yarn Any person who manufactures silk yarn from raw silk or silk worm cocoons for supply of silk yarn Any register

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t; or (e) any body corporate established, by or under any law; or (f) any partnership firm whether registered or not under any law including association of persons; or (g) any casual taxable person. Union Territory Goods and Services Tax Act; or (e) any body corporate established, by or under any law; or (f) any partnership firm whether registered or not under any law including association of persons; or (g) any casual taxable person; located in the taxable territory Services supplied by an individual advocate including a senior advocate by way of representational services before any court, tribunal or authority by way of legal services, to a business entity. An individual advocate including a senior advocate or firm of advocates Any business entity located in the taxable territory Services supplied by an arbitral tribunal to a business entity. An arbitral tribunal Any business entity located in the taxable territory Services provided by way of sponsorship to a body corporate or partne

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xable territory. Services supplied by an insurance agent to any person carrying on insurance business An insurance agent Any person carrying on insurance business, located in the taxable territory. Services supplied by a recovery agent to a banking company or a financial institution or a nonbanking financial company. A recovery agent A banking company or a financial institution or a non-banking financial company, located in the taxable territory. Supply of services by an author, music composer, photographer, artist or the like by way of transfer or permitting the use or enjoyment of a copyright covered under clause (a) of sub-section (1) of section 13 of the Copyright Act, 1957 relating to original literary, dramatic, musical or artistic works to a publisher, music company, producer Author or music composer, photographer, artist, or the like Publisher, music company, producer or the like, located in the taxable territory Reverse Charge on Procurement by Registered Person from Unregiste

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e room tariff is less than ₹ 1,000. Section 9(4) won't be applicable since services by a hotel having declared tariff less than ₹ 1,000 per day or equivalent is an exempt service. 3. The Section is applicable to intra state taxable supplies only. As per section 24, in case of inter-state taxable supply, registration is mandatory without any turnover limit. So there could not be any taxable supply from unregistered to registered person under reverse charge in case of inter-state. 4. Supplier should be unregistered whether he is liable to registered or not. 5. Recipient should be registered. Exemption to Section 9(4) Vide Notification 08/2017 dated 28/06/2017, reverse charge provisions would not be applicable if the aggregate value of such supplies of goods or service or both received by a registered person from any or all the suppliers, who is or are not registered, does not exceed ₹ 5000 in a day In our view, the above limit of ₹ 5000 is only for taxable sup

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s from the date of issue of invoice by the supplier If it is not possible to determine the time of supply under (a) or (b), the time of supply shall be the date of entry in the books of account of the receiver of service. Input tax credit on reverse charge supplies Tax paid on reverse charge basis will be available for input tax credit if such goods and/or services are used in the course or furtherance of business. The service recipient (i.e., who pays reverse tax) can avail input tax credit Invoice in case of reverse charge As per section 31(3)(f), person discharging GST liability under reverse charge under section 9(3) or 9(4) shall issue an invoice in respect of goods or services or both received by him from the supplier. Further as per 31(3) (g) shall issue a payment voucher at the time of making payment to the supplier. – Reply By SUDHIR KINHALE – The Reply = Dear Sir, Self invoice U/s sec 9 (3) & 9 (4) of GST whether shown in GSTR1 or GSTR-2 ? – Reply By yateen vyas – The Rep

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Goods and Services Tax – GST – By: – Dr. Sanjiv Agarwal – Dated:- 6-7-2017 – This part of the series contains meanings of certain terms covered in Section 2 of the CGST Act, 2017. These are Securities, Services, State, Supplier, Tax period, Taxable Person, Taxable Supply, Taxable Territory, Telecommunication Service, Turnover in State, Usual Place of Residence, Union Territory, Valid Return, Voucher and Works Contract. Securities [Section 2(101)] Securities shall have the same meaning as assigned to it in clause (h) of section 2 of the Securities Contracts (Regulation) Act, 1956. Securities shall have the same meaning as in Securities Contracts (Regulation) Act, 1956. As per section 2(h) of the Securities Contracts (Regulation) Act, 1956, securities include- (i) shares, scrips, stocks, bonds, debentures, debenture stock or other marketable securities of a like nature in or of any incorporated company or other body corporate; (ia) derivative; (ib) units or any other instrument issued b

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use of money or its conversion by cash or by any other mode, from one form, currency or denomination, to another form, currency or denomination for which a separate consideration is charged. The term Services have been defined to mean anything other than the goods. Thus, it would be important to analyse the receipt of any credit / payment on which tax has not been charged and need to determine the basis of non charging of tax as supply of goods and / or supply of services. Only in the cases of non taxability under GST law or goods and services declared exempt in GST law, all the credits / payments may have GST implication. Service shall exclude goods, money and securities. Activities relating to use of money or its conversion by cash or by any other mode (form, currency or denomination) for which separate consideration is charged, will be covered. State [Section 2(103)] 'State' includes Union Territories with legislature. Delhi and Pondicherry are two such States. These shall h

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son who is registered or liable to be registered under CGST law. Persons who are liable for registration are governed by section 22 and section 24 of the Act. Every supplier shall be liable to be registered. Taxable Supply [Section 2(108)] Taxable supply means a supply of goods or services or both which is leviable to tax under this Act. Taxable supplies are liable to tax. Supplies other than non-taxable supplies and exempt supplies are liable to tax Taxable Territory [Section 2(109)] Taxable territory means the territory to which the provisions of this Act apply. Taxable territory means the territory to which GST law would apply. As per Section (1), CGST Act applies to whole of India except the State of Jammu and Kashmir (J &K). Territory which is not taxable is called non-taxable territory. Telecommunication Service [Section 2(110)] Telecommunication service means service of any description (including electronic mail, voice mail, data services, audio text services, video text ser

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f goods or services or both and inter-State supplies of goods or services or both made from the State or Union territory by the said taxable person but excludes central tax, State tax, Union territory tax, integrated tax and cess; Turnover in a State or turnover in Union territory means the aggregate value of- (a) all taxable supplies (excluding the value of inward supplies on which tax is payable by a person on reverse charge basis), (b) exempt supplies made within a State or Union territory, (c) exports of goods and/or services, and (d) inter-State supplies of goods or services or both made from the State or Union territory by a taxable person Turnover excludes taxes, if any charged under the CGST Act, SGST Act, the IGST Act, UTGST and Cess, as the case may be. It may be noted that aggregate turnover does not include the value of inward supplies on which tax is payable by a person on reverse charge basis, value of non-taxable supplies and the value of inward supplies. Usual Place of

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non-resident taxable person or a person paying tax under the provisions of section 10, section 51 or section 52 shall, for every calendar month or part thereof, furnish, in such form and manner as may be prescribed, a return, electronically, of inward and outward supplies of goods or services or both, input tax credit availed, tax payable, tax paid and such other particulars as may be prescribed, on or before the twentieth day of the month succeeding such calendar month or part thereof. Voucher [Section 2(118)] Voucher means an instrument where there is an obligation to accept it as consideration or part consideration for a supply of goods or services or both and where the goods or services or both to be supplied or the identities of their potential suppliers are either indicated on the instrument itself or in related documentation, including the terms and conditions of use of such instrument. Sometimes vouchers are supplied for a consideration which entitles the recipients of those vo

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Goods and Services Tax – Started By: – Amal Raj – Dated:- 6-7-2017 Last Replied Date:- 6-7-2017 – For computer rental service what will be the GST % and for the same is there any excemption with respect to turnover – Reply By Kishan Barai – The Reply = 18% if >20,00,000 turnover or more – Reply By MARIAPPAN GOVINDARAJAN – The Reply = Exemption is available if your annual transaction is within ₹ 20 lakhs. If it exceeds you are liable to levy GST and the rate is 18%. – Discussion-Forum –

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