Goods and Services Tax

Goods and Services Tax – GST – By: – Dr. Sanjiv Agarwal – Dated:- 12-6-2017 – This part of the series contains meanings of certain terms covered in Section 2 of the CGST Act, 2017. These are Non-resident Taxable Person, Output Tax, Outward Supply, Person, Place of Business, Principal Place of Business and Principal Supply. Non-resident Taxable Person [Section 2(77)] 'Non-resident taxable person' means any person who occasionally undertakes transactions involving supply of goods or services or both, whether as principal or agent or in any other capacity, but who has no fixed place of business or residence in India. Not resident taxable person has no fixed place of business or residence in India. Such person occasionally undertakes transactions of supply of goods or services or both, as agent or principal or in any other capacity. It is important to note that the features of Casual taxable person and non-resident taxable person are same except for the fact that the non-resident

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rvices made by a taxable person. It is important to note that even though tax on reverse charge basis is also payable by a taxable person but payment of such tax will not be considered to be output tax. Outward Supply [Section 2(83)] 'Outward supply' in relation to a taxable person, means supply of goods or services or both, whether by sale, transfer, barter, exchange, licence, rental, lease or disposal or any other mode, made or agreed to be made by such person in the course or furtherance of business. The term outward supply in relation to a person has been defined to mean : supply of goods and / or services, whether by sale, transfer, barter, exchange, license, rental, lease or disposal, made or agreed to be made by such person, in the course or furtherance of business, but excludes the cases where the tax is payable on reverse charge basis. The supply of goods and/or services by a person by any means in the course or furtherance of business will be treated as outward supply

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Place of Business [Section 2(85)] 'Place of business' has been defined as an inclusive definition and it includes – a place from where the business is ordinarily carried on, and includes a warehouse, a godown or any other place where a taxable person stores his goods, provides or receives goods and/or services; or a place where a taxable person maintains his books of account; or a place where a taxable person is engaged in business through an agent, by whatever name called. Place of business would include the following places : place from where business is ordinarily carried on, warehouse, godown, any other place used for storing goods or place to provide or receive goods or services by taxable person, place where books of accounts are maintained by taxable person (it may be place of business of agency or any professional), place from where a taxable person is engaged in business through agent by whatever name called (like commission agent, C&F agent, consignment agent etc)

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ounts and records Principal Supply [Section 2(90)] 'Principal Supply' means the supply of goods or services which constitutes the predominant element of a composite supply and to which any other supply forming part of that composite supply is ancillary. The term principal supply needs to be read in reference to 'composite supply'. As composite supply consists of two or more than two goods and / or services, one of such will be principal supply and other goods and / or services will be termed as ancillary supply. In the case of composite supply, the rate of tax is determined in reference to rate of tax applicable on principal supply constituted in the contract of composite supply. Principal supply in a case of composite supply will be determined on the basis of predominant element of composite supply. To have this supply is the objective of the recipient of such supply and other items called ancillary items of goods and / or services act as a means for better enjoyment o

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Goods and Services Tax – Started By: – Ramakrishnan Seshadri – Dated:- 12-6-2017 Last Replied Date:- 15-6-2017 – Dear Experts,Good Morning to all.We registered ourselves with gst.We have 5 plants with different excise registration number.But our Pan no and vat no is one.Hence we have provided only one registration number under gst.Now our question is how to upload the interplant transfer invoices under gst.If two separate registration number means no issue. But we are having only one registrati

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DGFT – Trade Notice No.09/2018 – Dated:- 12-6-2017 – No.01/93/180/04/AM-18/PC-2(B) Government of India Ministry of Commerce & Industry Directorate General of Foreign Trade Udyog Bhawan, New Delhi Dated 12.06.2017 Trade Notice No. 09 To 1. All IEC holders/applicants 2. All EPCs / All Chambers of Trade and Industries 3. FIEO/ASSOCHAM/CII 4. All RA's of DGFT 5. All field formations of Customs Sub: Changes in IEC with the introduction of GST-regd. The Foreign Trade (Development & Regulation) Act, 1992 provides that no person shall make any import or export except under an Importer Exporter Code (IEC) number, granted by the Director General of Foreign Trade or the officer authorized by the Director General in this behalf. Further, P

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y assumes importance as identifier at the transaction level. In view of this, it has been decided that importer/exporter would need to declare only GSTIN (wherever registered with GSTN) at the time of import and export of goods. The PAN level aggregation of data would automatically happen in the system. 3. Since obtaining GSTIN is not compulsory for all importers / exporters below a threshold limit of turnover, all exporters / importers may not register with GSTIN [barring compulsory registration in certain cases as provided in section 24 of the Central Goods and Services Tax Act, 2017 (12 of 2017) or in cases where either credit is claimed of IGST], therefore, GSTIN cannot become universal, as IEC is for import/export business. Further, DG

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Goods and Services Tax – Started By: – CMA VENKATESHAM MUTA – Dated:- 11-6-2017 Last Replied Date:- 11-6-2017 – As per my understanding, ITC is eligible for telecommunications tower subject to some condition :1) upto 1/3rd of total ITC in the FY in which goods recd2) upto 2/3rd of total ITC, including credit availed in the first FY, in the succeeding FY 3) balance in, any subsequent FY.The above is as per model GST law.What is the latest position, I am not able to understand, kindly guide. – Re

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16th GST Council Meeting Dated:- 11-6-2017 GST Council – Minutes – Circulars – GST – Minutes of the 16 th GST Council Meeting held on 11 th June 2017 The sixteenth meeting of the GST Council (hereinafter referred to as the Council ) was held on 11 June, 2017 in Vigyan Bhawan, New Delhi under the Chairpersonship of Hon ble Finance Minister, Shri. Arun Jaitely. The list of the Hon ble Members of the Council who attended the meeting is at Annexure-1 . The list of officers of the Centre, the States, the GST Council, the Goods and Services Tax Network (GSTN) who attended the meeting is at Annexure 2 . 2 The following agenda items were listed for discussion in the 16 th meeting of the Council:- 1. Confirmation of the Minutes of the 15 th GST Council Meeting held on 3 June 2017 2. Approval of amendments to draft GST Rules (details to be informed subsequently) 3. Rate adjustments, if any, based on representations received from Trade and Industry 4. Any other agenda

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mon people ) with the following version: Handloom fabrics and handicraft goods were exempt in Odhisha. Livelihood of more than 3.5 lakh artisan families depended on it. Handloom product were not only in demand outside the State, but were also used by the common people. He stated that he was in favour of exempting handloom fabrics and sarees. The council agree to record this version in the Minutes. (ii) In paragraph 9.8. 12, to replace the version recorded in the Minutes ( the Hon ble Minister from Odisha supported this proposal and stated that tax on zari would affect the Iivelihood of artisans ) with the following version: The Hon ble Minister from Odisha supported this proposal and stated that tax on handicrafts would affect the livelihood of artisans . The Council agreed to record this version in the Minutes. (iii) In paragraph 9.9.2, to replace the version recorded in the Minutes ( The Hon ble Minister from Odisha stated that his State was tendu leaf bearing State and

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.1.2. The Secretary informed that there was a typographical error in paragraph 10(i) of the Minutes and a corrigendum was circulated in the Meeting today to replace the decision recorded therein ( to put cereals, pulses and flour put up in unit container and bearing a registered brand name in the exempt category instead of the proposed rate of 5% ) with the following: to cereals, pulses and flour put up in unit container and bearing a registered brand name the rate of 5% instead of keeping them in the exempt category . The Council agreed to the proposed replacement in paragraph 10(i) of the Minutes. 4.1.3. The Secretary stated that during the officers meeting held in the morning today, Shri Raghwendra Kumar Singh, Commissioner, Commercial Taxes (CCT), Madhya Pradesh, had pointed out that in paragraph 9.10.4 of the Minutes, the statement attributed to the Hon ble Minister from Madhya Pradesh regarding expressing a preference for taxing gold at the rate of 5% was actually made by th

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changes as recorded below: – 5.1. In paragraph 9.8.8, to replace the version of the Hon ble Minister from Odisha with the following version: Handloom fabrics and handicraft goods were exempt in Odisha. Livelihood of more than 3.5 lakh artisan families depended on it. Handloom products were not only in demand outside the State, but were also used by the common people. He stated that he was in favour of exempting handloom fabrics and sarees. 5.2. In paragraph 9.8.12, to replace the version of the Hon ble Minister from Odisha with the following version: The Hon ble Minister from Odisha supported this proposal and stated that tax on handicrafts would affect the livelihood of artisans . 5.3. In paragraph 9.9.2, to replace the version of the Hon ble Minister from Odisha with the following version: The Hon ble Minister from Odisha stated that the rate of tax of tendu leaf in Odisha was 5% and tax rate on Bidi was 10%. His State being a tendu leaf bearing State, he suggested to k

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Haryana: The Hon ble Chairperson observed that the officers of the Central Government and the State Governments should sit together and take a view on the issue. Agenda Item 2 : Approval of amendments to draft GST Rules and related Forms (i) :Accounts and Records Rules; (ii) Accounts and Records Forms: 6.1. Introducing this Agenda item, the Secretary stated that the draft GST Rules on Accounts and Records were put in the public domain for comments of the stakeholders. He stated that based on the comments received, the Law Committee of Officers had suggested certain changes to the Rules. He added that two additional changes were proposed during the meeting of officers of the Central Government and the State Governments held on 11 June, 2017 and these were circulated in writing to the Hon ble Members of the Council just before the start of the Meeting. He invited Shri Upender Gupta, Commissioner (GST Policy Wing), CBEC, to brief the Council about the changes proposed. The Comm

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ned but, taking into account the representations received, it was now proposed that log of changes need not be maintained for those changes which were for correcting mistakes of clerical nature. (iv) It was proposed to make an addition in sub-rule (16) of Rule 1 to provide that where accounts and documents were maintained manually, these would be kept at every related place of business mentioned in the certificate of registration and if these were maintained electronically, they shall be accessible at every related place where these were maintained digitally. (v) The Law Committee of Officers had proposed to delete sub-rule (3) of Rule 2 which provided that a registered person, would on demand, produce accounts of the audit trail and interlinkages, including the source documents, whether paper or electronic, and the financial accounts, record layout, data dictionary and explanation of codes used. However, during the meeting of officers of the Central Government and the State Gove

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l approved the Rules and related Forms on Accounts and Records including the changes made therein. 7. For agenda item 2 , the Council approved the GST Rules on Accounts and Records and the related Form along with the amendments proposed by the Law Committee of Officers and during the officers meeting held just prior to the Council meeting on 11 June 2017 as enumerated at 7aragraph 6 above. Agenda Item 3: Rate adjustments, if any, based on representations received from Trade and Industry: Discussion on GST rates for goods: 8.1. Introducing the above agenda item, the Secretary recalled that during the 15 th Meeting of the Council (held on 3 June, 2017), it was decided that all representations regarding reduction in rates were to be submitted within a day or two of the conclusion of the 15 th Council Meeting, and these were to be considered by the Fitment Committee and its recommendations were to be placed before the Council in its next Meeting. He informed that the

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discussion on individual items, he wanted to place before the Council a general point relating to small scale industries. He stated that in Delhi, 90% of units in sectors like footwear, toys, electrical fittings and plastic goods had a turnover below ₹ 1.5 crore and due to Central Excise exemption, they paid lower rate of tax than the present rate slabs of 18% to 28% recommended by the Council. He stated that this would adversely affect the Make in India campaign. He added that keeping this in mind, he would suggest certain changes in tax rates during discussion on individual items. The Hon ble Minister from Telangana stated that a large number of small and medium enterprises (SMEs) in his State had a turnover below ₹ 1.5 crore. He stated that the marble industry was very big in his State, which as exempt from Central Excise duty up to a turnover of ₹ 1.5 crore and it was now proposed to be taxed at the rate of 28%. He stated that there were several cheap varieties

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es made by them. The Hon ble Minister from Chhattisgarh stated that the traders had the choice not to opt for the Composition scheme. The Secretary invited comments from the officers as well. The Hon ble Chairperson stated that discussion on this subject should also cover the revenue aspect. 8.4. Shri R.K. Tiwari, Additional Chief Secretary (ACS), Uttar Pradesh, stated that his State had a large number of SMEs falling within the annual turnover of ₹ 1 crore and if all of them opted for Composition scheme, they would suffer a very large-scale revenue loss to the tune of about ₹ 5.000 crore. The Hon ble Deputy Chief Minister of Gujarat stated that his State also had a very large number of SMEs. He proposed to increase the turnover limit for Composition scheme to ₹ 75 lakh so that loss of revenue to the Government was comparatively less and suggested to keep the rate of tax at 2%. Dr. P.D. Vaghela, CCT, Gujarat stated that originally, they had opposed the proposal to

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e turnover limit for Composition scheme to ₹ 1 crore. The Hon ble Minister from Telangana stated that the small-scale industries would be adversely affected as no Central Excise duty was presently charged on the units with a turnover upto ₹ 1.5 crore. The Secretary stated that States were charging VAT on all units with turnover of more than ₹ 10 lakh and except for three States, Composition scheme for manufacturers was to be extended for the first time in the other States. 8.6. The Hon ble Minister from Rajasthan stated that there was a mistake in calculation of total tax incidence on granite and marble. He observed that marble was not a luxury item and its price ranged from ₹ 15 per square feet to ₹ 1,500 per square feet and there were mostly small suppliers of marble. He added that marble was a labour intensive sector which provided employment to lakhs of people and mostly MSME units with turnover of less than ₹ 1.5 crore are engaged in this and

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attisgarh. He observed that manufacturers with turnover below ₹ 1.5 crore did not pay any Central Excise duty but units with turnover above ₹ 10 lakh were paying VAT, and hence there was justification to levy some tax on them. He suggested that the turnover limit for Composition scheme could be kept at ₹ 75 lakh. He observed that if the scheme of Composition was extended to units having annual turnover upto ₹ 1 crore, the rate of tax under the Composition scheme could be tweaked but if the turnover limit for Composition was kept at ₹ 75 lakh. then the present rate of tax could be maintained. He observed that it was important to safeguard the SME sector as they had made an investment of ₹ 1.000 crore in this sector which gave employment to about 6,000 workers. 8.7. The Hon ble Minister from Kerala stated that the turnover limit for Composition scheme should be increased to ₹ 1 crore and the rate of tax under the Composition scheme could be in

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sition scheme was kept at ₹ 1 crore or ₹ 1.5 crore, in some States, almost 100% of units could fall in the Composition scheme. He observed that the description of SMEs would differ from State to State and data was needed to analyse gains and losses to different States. The Hon ble Minister from Haryana agreed with the observations of the Hon ble Minister from Jammu Kashmir and stated that there was a need to protect SMEs to generate employment but it was equally important to arrive at a rational limit for availing Composition. He suggested that an officers committee could examine this issue further. 8.8. The Hon ble Chief Minister of Puducherry stated that the impact of increasing the turnover threshold for as availing Composition scheme would need to be examined and to be placed before the Council. He observed that if a dealer had a daily turnover of ₹ 15,000, he would cross the threshold of ₹ 20 lakh and would start paying tax. He observed that 28% tax r

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the rate of ax would adversely affect the revenue of the consuming States. 8.9. The CCT, Gujarat, stated that the scheme of Composition was discussed at length in the Officers Committee and the rate of 2% for manufacturers was fixed as a thumb rule, rather than after any scientific analysis. He pointed out that if all manufacturers got the benefit of the Composition scheme. then Gujarat would lose about ₹ 150 crore of revenue from ice cream manufacturers alone as their input, namely, milk was exempt from tax whereas ice cream was taxed at the rate of 28%. He informed that his State had worked out a GST rate for composition for different manufacturing sectors but after discussion, it was felt that this would not be viable. He stated that revenue of the States of North-East would be hit very hard if all manufacturers were allowed to come under the Composition scheme. The Secretary stated that a negative list of industries that would not be extended the benefit of Composition s

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ance of SMEs could be listed and incidence of Central Excise could be reduced by half and the combined incidence of tax could be worked out accordingly. The ACS, Uttar Pradesh, stated that extending the Composition benefit to manufacturing units which were presently paying VAT would bring down the effective rate of taxation from the present about 10% (VAT rate 14.5% minus input tax credit roughly at the rate of 4%) to 2%. He also expressed an apprehension that this gave an opportunity to the units to split their books of account. He further stated that if the Composition limit was increased to ₹ 1 crore, their State would suffer a loss of revenue of about ₹ 7,000 to ₹ 10,000 crore. He suggested that if the turnover limit under the Composition scheme was proposed to be increased to ₹ 1 crore, the Composition rate for manufacturing units should be fixed at the rate ranging from 7% to 10% to make the rate revenue neutral. 8.11. The Hon ble Deputy Chief Minister

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gst the family members. Shri V.K. Garg, Advisor (Financial Resources) to Chief Minister, Punjab stated that for products falling under the tax bracket of 28%, the Composition rate could be kept at 5% to 6% and observed that the scheme of Composition would normally be availed by those units which directly sold their products to consumers. 8.12. The Secretary invited Shri Prakash Kumar, Chief Executive Officer (CEO), Goods and Services Tax Network (GSTN), to present the data available with GSTN on the Composition dealers. The CEO, GSTN. stated that he had sought data on the Composition dealers from the States one year back and the data was received from 10 States. He stated that as per the data, the Composition dealers as a percentage of the total dealers and the threshold for composition dealers (in brackets) were as follows: Andhra Pradesh – 36% (₹ 50 lakh); West Bengal -22% (Resellers – Up to ₹ 50 lakh and Works Contractors – Unlimited; Karnataka – 8% (Hoteliers – &#837

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30,000 crore of revenue only from VAT from this category of taxpayers. He further mentioned that if one calculated the tax incidence on this sector on a Compounding basis pre-GST, a 3O% value added estimation with 14.5% VAT rate of products made by taxpayers of this sector (as had been mentioned by the Principal Secretary from Uttar Pradesh) translated to 4.35%. If embedded Central Excise duty on the products were added to the tune of about 4%-5% even on a conservative estimate, the tax incidence on this category of tax payers on a compounding basis pre-GST came to 8%-9%. He further mentioned that against this, the Council had already approved a Compounding rate of 2% on taxpayers with turnover below ₹ 50 lakh. Any further increase in threshold for compounding along with the fact that compounding option encouraged taxpayers to split up their units, as the Hon ble Deputy Chief Minister of Gujarat mentioned, could have serious adverse revenue implications. 8.14. The Hon ble Min

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e in India policy. He supported the proposal to increase the threshold limit for Composition scheme and observed that this might lead to gain for some States and loss for others but it would serve the larger national purpose of encouraging Make in India policy. The ACS, Tamil Nadu, stated that if the turnover limit for Composition was increased to ₹ 75 lakh, the revenue loss would not be much. He stated that keeping in view the fact that all inter-State suppliers would be outside the scheme of Composition and the method of calculation of turnover was based on all-India aggregate turnover of persons having the same Permanent Account Number (PAN), increasing the turnover limit for Composition scheme to ₹ 1 crore annually would not affect the revenue much. He pointed out that the limit of ₹ 50 lakh turnover for Composition scheme as set in 2006 and keeping in view the inflation, there was justification to increase this turnover limit to ₹ 75 lakh or ₹ 1 cr

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appeared acceptable though as per their rough calculation, t could lead to loss of revenue of about 3%4%. He observed that the Composition scheme was voluntary arid many taxpayers in his State chose not to opt for this scheme. As regards rates of tax, lie suggested that traders could be taxed at the rate of 1%-2% and manufacturers at the rate of 3%-4%. The Hon ble Chairperson stated that rough calculation indicated that products in the 28% rate slab would, in terms of revenue, break even if the Composition rate was fixed at 5% and products in the 18% rate slab would break even, if the Composition rate was fixed at 3%. The Hon ble Minister from West Bengal stated that this could be a sensible approach but it could lead to complications in the tax regime. 8.16. The Hon ble Chairperson observed that as rates were prescribed in the law (Section 10 of the CGST Act and the SGST Acts), changing the rate of Composition would require amendment in the law which was not possible at this stag

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anufacturers for exclusion from the Composition scheme. The Hon ble Chairperson observed that the considerations of protection of revenue and that of the interest of SMEs needed to be balanced and the revenue loss could be minimized by having a negative list of manufacturers ineligible for the Composition scheme. The Hon ble Minister from Maharashtra and the Hon ble Deputy Chief Minister of Gujarat also stated that there should be a negative list of manufacturers who would not be allowed to avail the Composition scheme. The ACS, Uttar Pradesh, stated that only smaller SMEs should be kept under the Composition scheme and the bigger ones should come under the normal system of taxation with input tax credit and audit. He pointed out that under the Composition scheme, the raw materials also went out of the audit trail. He observed that for new units under the SME sector, a provision could be made to refund VAT and this would maintain the sanctity of accounts. He observed that the Compositi

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the scheme and to have a list of manufacturers who shall be ineligible for Composition scheme. The Council agreed to these proposals. 8.16A. The Hon ble Minister from Tamil Nadu circulated a written speech during the meeting. He thanked the Council for having agreed to the request of Tamil Nadu regarding the rates of tax on footear; palmyra jaggery; glass for corrective spectacles and cashew nut. He also commended the decision to levy tax on Textiles at a uniform lower rate of tax. He reiterated that handloom textiles, roasted gram locally known as fried gram , sago, sea shells and handicraft items made from them, hand-made jewellery made by goldsmiths from the economically weaker sections and fishnet and fishnet twine should be Nil-rated; water sold in Refill Cans (bubble top) and small plastic pouches, curry, other spices and mixture of spice powder known as masala powder, unbranded biscuits, bidi, concrete blocks/bricks, and films made in the local language of the State should

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ed that the rate reduction was suggested for 66 items and further suggested that the Council should take up for discussion only those goods where Hon ble Members had some objection and the proposed rate for other goods could be taken as approved. With this understanding, he invited comments of the Hon ble Members on the list of products presented in the agenda notes for agenda item 3 and the discussion on the same is recorded as below: (i) Pasta, Macaroni (SI. No. 14 of the List): The Hon ble Minister from Uttarakhand stated that pasta and macaroni should not be taxed at the rate of 18% as they were made from maida and the procedure was almost similar to that for sewiyan which was to be taxed at the rate of 5%. Shri Alok Shukla, Joint Secretary (TRU-l), CBEC, stated that the present incidence of tax on pasta and macaroni was about 23% and these goods were already recommended to be taxed at a lower rate of 18%. The Council agreed not to change the already approved rate of tax for p

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inversion. The Hon ble Minister from Goa stated that they did not want input tax credit on fishnet nor refund due to duty inversion and simply wanted the tax rate to be lowered from 18% to 5%. The Joint Secretary (TRU-l), CBEC, stated that fishnet was taxable at the rate of 12% and not 18% and that value addition in the manufacture of fishnet was such that the difference in the rate between the raw material and the finished goods could be absorbed and the entire tax could be paid through input lax credit. He added that if tax rate was reduced to 5%, fishnet would get imported in large quantities. The Hon ble Chairperson stated that fishnet manufacturers would get input tax credit on raw material which was also proposed to be taxed at the rate of 12%. The Council agreed not to change the already approved rate of tax of 12% for fishnet. (iv) Farsan (SI. No. 24 of the List): The Hon ble Minister from Maharashtra suggested to tax farsan at the rate of 5% at par with the rate of tax fo

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e Minister from Haryana pointed out that for these goods, the proposed 28% rate of tax was higher than the current incidence of tax of about 21.89%. The CCT, Gujarat, stated that there were different rates of VAT for switches for household use and industrial use due to which the current incidence of tax was coming lower than the proposed tax rate and that the issue was discussed in the Fitment Committee and it was felt that in order to avoid the scope for mis- declaration and duty evasion, a uniform rate of 28% could be kept on these goods. The Council agreed not to change the already approved rate of tax for these goods at the rate of 28%. (vii) Other Dry Fruits and Nuts (SI. No. 8 of the List): The Hon ble Minister from Uttar Pradesh stated that since cashew nut was being taxed at the rate of 5%, singhada and makhana should not be taxed at the rate of 12%. He further stated that as it was consumed by people during fasting, it was exempt from VAT and proposed that it should also

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lower rate and the entry should also be clarified suitably. The Joint Secretary (TRU-I), CBEC stated that the Supplementary Note (3) to Chapter 9 provides that the addition of other substances to spices shall not affect their inclusion in spices provided the resulting mixtures retain the essential character of spices and spices also include products commonly known as masalas and it would be taxable at the rate of 5% under Chapter 9. The Council agreed to this proposal. ix Instant Coffee (SI. No. 17 of the List): The Hon ble Chief Minister of Puducherry observed that 28% rate of tax on instant coffee was too high. The Secretary explained that such coffee was sold only by multinational brands and the benefit of lower tax rate might not get passed on to the consumers. He further clarified that coffee powder other than instant coffee was to be taxed at a lower rate of 5%. The Council agreed not to change the already approved rate of tax for instant coffee at the rate of 28%. (x)

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uncil agreed to change the proposed rate of tax from 18% to 12% on these products. (xi) Ayurvedic medicines (SI. No. 33 of the List): Hon ble Deputy Chief Minister of Delhi suggested that ayurvedic medicines should be taxed at a lower rate of 5%. The Secretary stated that the current incidence of tax on ayurvedic medicines was about 13%, and therefore, it would be reasonable to tax them at 12%, as proposed in the agenda notes. The Council agreed to this proposal. (xii) Granite Slabs (SI. No. 29 of the List): The Hon ble Minister from Telangana stated that presently there was only 2% CST (Central Sales Tax) on granite slabs and levying 28% tax on them was too high. He stated that lakhs of people were employed in this sector and the cost of slabs varied from ₹ 16 per square feet to ₹ 80 per square feet. He suggested to reduce the rate of tax on granite slabs. He further stated that the present incidence of tax on granite slabs was only about 16.32%. and therefore, i

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y (TRU-I). CBEC clarified that the issue was deliberated during the 14 th Council Meeting (held on 18-19 May, 2017) and after discussion, it was decided to prescribe a uniform rate of 28% on marble slabs as well as granite slabs to avoid misclassification and disputes. The Council agreed not to change the already approved rate of tax for granite slabs at 28%. (xiii) Insulin (SI. No. 34 of the List): The Hon ble Minister from Jharkhand stated that rate of medicines had been generally reduced and the rate of tax on insulin should also be reduced from the proposed rate of 12%. The Hon ble Deputy Chief Minister of Gujarat stated that a very large number of people used insulin and it should be taxed at the rate of 5%. He added that since tax on dental wax was proposed to be reduced from 28% to 18%, tax on insulin should also be reduced from 12% to 5%. The Hon ble Ministers from Maharashtra and West Bengal supported this proposal. The Secretary suggested that insulin formulations of al

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d to the proposed rate of 5% for bio gas. (xv) Marble slabs (SI. No. 30 of the List): The Hon ble Minister from Rajasthan stated that there was no Central Excise duty on marble and granite for manufacturers up to an annual turnover of ₹ 1.5 crore and that a tax rate of 28% would make the domestic products very costly. The Secretary stated that imported marble would also be charged to IGST at the rate of 28% and in addition, Customs Duty was also leviable. The Hon ble Minister from Telangana stated that the current incidence of tax on granite slabs was about 16.32% and enquired why it was proposed to be taxed at the rate of 28%. The Joint Secretary (TRU-l), CBEC, stated that the rate of tax on granite and marble tiles was 28%, and therefore, the intermediate products i.e. the granite and marble slabs were also kept in the tax bracket of 28%. He further clarified that the issue was deliberated during the 14 th Council meeting (held on 18-19 May, 2017)and after discussion, it

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such classification and it was not desirable to reintroduce them. Shri Ritvik Pandey, CCT, Karnataka supported the view of the CCT, Gujarat. He also expressed an apprehension that as cans could be refilled, the taxpayer would declare even supplies of bottled water as supplies in 20-litre cans. The Secretary stated that it would not be difficult to detect this kind of mis-declaration. The Hon ble Deputy Chief Minister of Delhi stated that there would be more scope for evasion of tax if more rate slabs were kept. The ACS, Uttar Pradesh, supported the proposal to keep the same tax rate on mineral water supplied in different forms. The Hon ble Minister from Jharkhand observed that very few people drank mineral water and suggested to increase the tax rate to 28%. After discussion, the Council agreed not to change the already approved rate of tax for mineral water at 18%. xvii Children s picture, drawing or coloring books (SI. No. 57 of the List): The Hon ble Minister from Jharkhand su

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ed public uproar as it was connected to the freedom of speech. The Hon ble Deputy Chief Minister of Delhi stated that text books and picture books did not have much difference. The Hon ble Deputy Chief Minister of Gujarat stated that in his State, books were given free to about 1 crore children, After discussion, the Council agreed to exempt tax on children s picture, drawing or coloring books instead of the proposed tax rate of I 2%. (xviii) Spectacle Cases; Glasses for Corrective Spectacles and Flint Buttons (Sl No. 49 67 of the List): The Hon ble Deputy Chief Minister of Delhi stated that manufacturers of spectacle cases were small entrepreneurs and instead of taxing them at 28%, it would be desirable to tax them at the rate of 12%, particularly when glasses for corrective spectacles were proposed to be taxed at the rate of 12%. The Joint Secretary (TRU-I), CBEC stated that the present incidence of tax on the spectacle cases was around 29.58% and that the manufacturers would

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Chairperson stated that the present incidence of tax on this product was 29.58%. The Hon ble Minister from Uttarakhand stated that the rate of tax on ply board should be reduced so that the forest cover was not cut for use in construction activities. The Hon ble Minister from Haryana stated that ply board industry supported agro-forestry programme of the Government and informed that poplar and eucalyptus were new agriculture produce developed for industrial production of ply board, etc. He also observed that it was a labour intensive industry, was presently in the Compounding scheme and did not have much input tax credit. He pointed out that if malt was to be charged at the rate of 18% on the consideration that it was an intermediate product, then ply board should also be considered as an intermediate product used in making houses, furniture, etc. The Hon ble Minister from Punjab supported the view of the Hon ble Minister from Haryana. The Secretary stated that ply board was in the na

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gents and dish washing products (SI. No. 38 of the List): The Hon ble Minister from Odisha stated that laundry detergent was an item of mass consumption and also played an important role in Swacha Bharart campaign and suggested that it should be taxed at a lower rate. The Hon ble Minister from Karnataka stated that as soaps were being taxed at the rate of 18%, laundry detergents should also be taxed at the rate of 18%. The Secretary stated that the volume of turnover of these products was very high and reduction in rate of duty would lead to a loss of revenue of about ₹ 5,000-10.000 crore. He suggested that any lowering of rate could be considered after observing the revenue trend. The Hon ble Chairperson observed that the current incidence of tax on these products was about 29.58%. The Council agreed to keep the rate of tax for these products at 28%. (xxi) Kites (SI. No. 56 of the List): The Hon ble Minister from Jharkhand stated that there was no justification to tax kite

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e of tax on wigs was fixed at 28%. The Hon ble Minister from West Bengal stated that very poor people collected hair in its normal state, cleaned and bleached it and then sent it to Gujarat for making wigs which was a high-end product. The Hon ble Minister from Haryana raised a question as to why the rate of tax on this product was proposed to be brought down from 28% to Nil on the recommendation of only one State whereas Council was not agreeable to reduce the rate of tax on ply board which was demanded by at least five States. The Secretary stated that the volume of sale of ply board was very high and there would be substantial revenue loss if rate of tax on ply board was reduced. The Council agreed to keep the rate of tax for human hair dressed, thinned, bleached or otherwise worked at Nil. xxiii Bamboo based products (SI. No. 50 of the List): The Hon ble Minister from Kerala suggested that rate of tax on bamboo based products should be reduced. The Joint Secretary (TRU – I). C

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a lower rate but it was not considered and the tax rate was kept at 12% and now it was suddenly reduced to 5%. He stated that he was happy at this reduction in rate but wanted to bring the position of his State on record. (xxvi) Fly Ash Bricks (SI. No. 61 of the List): The Hon ble Minister from Telangana stated that the rate of tax on fly ash bricks should be reduced to 5% instead of the presently proposed rate of 12% as a lot of fly ash was produced as waste material in the large number of thermal power stations located in his State and these thermal power stations had to spend money to dispose of fly ash, The Secretary stated that the Fitment Committee had recommended a tax rate of 18% which had already been reduced to 12% during the 14 th Council Meeting(held on 18-19 May, 2017) and requested not to reopen this issue. The Hon ble Chairperson stated that there was no strong justification to further reduce the tax rate on fly ash bricks. The Council agreed to keep the rate of t

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ster from Haryana stated that when tractors were to be taxed at the rate of 12%, it was not justifiable to tax parts and components of tractors at the rate of 18% and 28%. He observed that a lot of repair activities took place for tractors and their spare parts were easily distinguishable and were only used in tractors. The Joint Secretary (TRU-l), CBEC, stated that tractor parts that were distinguishable as exclusively being used in tractors were proposed to be taxed at the rate of 18% by taking a carve out in Chapter heading 4011 (tyres and tubes) and in Chapter heading 8708 (parts and accessories of motor vehicles) and other parts, including engines, were proposed to be taxed at the rate of 28% in order to avoid misclassification and duty evasion. The Hon ble Chief Minister of Puducherry stated that when the rate of tax on fixed speed diesel engines (SI. No.74 of the List) was reduced from 28% to 12%, there was no justification to levy tax on tractor engines at the rate of 28%. The

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i-precious stones (SI. No. 68 of the List): The Hon ble Minister from Rajasthan stated that these should be taxed at Nil rate instead of the proposed rate of 0.25% because these were not that precious in nature and all of them were exported. The Secretary stated that a very low rate of 0.25% was proposed on these goods as it was only meant to establish an audit trail. The Council agreed to keep the proposed rate of tax at 0.2 5% for rough precious and semi-precious stones. (xxi) Bamboo furniture (SI. No. 127 of the List): The Hon ble Minister from Kerala stated that the proposed 28% rate of tax on bamboo furniture was prohibitively high and this would affect the producers of North-Eastern States. The Hon ble Minister from Maharashtra stated that the Government of India had been encouraging bamboo products and the rate of 28% was too high. He added that China had developed bamboo furniture on a large scale and India should also encourage the same. The Hon ble Chairperson suggested

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n additional cost for these cars due to imposition of 15% Compensation Cess, which was not desirable for an environment-friendly product. The Hon ble Minister from Kerala stated that he did not support taxing an environment-friendly product at a high rate. The Hon ble minister from Goa stated that 15% Compensation Cess should not be imposed on environment- friendly car. The Hon ble Chairperson stated that the note on hybrid cars should be circulated by the Secretariat to all the Hon ble Members of the Council after which, if need be, it could be discussed during the next meeting of the Council. (xxxiii) Molasses: The Hon ble Minister from Karnataka stated that they had concerns on the rate of tax on molasses and invited the CCT, Karnataka, to explain the issue. The CCT, Karnataka, stated that under the VAT regime, the tax paid on molasses was set off against the excise duty on clearance of alcohoIic liquor for human consumption. In the GST regime, as alcoholic liquor for human cons

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ed out as no refund was being allowed on credit overflow whereas the bigger manufacturers who bought fibre and made yarn and fabric in their own units would not suffer any disadvantage. The Hon ble Minister from Rajasthan stated that there should be fibre neutrality for textile industry so that there was lesser accumulation of input tax credit for smaller units, in ratio of integrated textile units. He added that accumulation of input tax credit would make all the difference and would put the small units at a disadvantage. The Advisor to Chief Minister, Punjab stated that this distortion could be addressed by charging tax on fibre at the rate of 18%, on yarn at the rate of 12% and on garments at the rate of 5%. The Secretary stated that Agenda Item No. 3 also included a proposal to levy 5% tax on job work services in relation to Textile yarns (other than man-made fibre/filament) and textile fabrics instead of the present rate of 18%. Alter discussion, the Council decided not to change

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d 21.07.2015; 9/2012-Cus dated 09.03.20 12); and declaring inter-State movement of any mode of conveyance for carrying goods or passengers or both or for repairs and maintenance as neither a supply of goods nor a supply of service. The Council approved these proposals. 9. For agenda item 3 , the Council approved the rates of GST on supply of goods as presented in the agenda notes with the following modifications: – (i) For Composition scheme, to increase the annual turnover threshold from ₹ 50 lakh to ₹ 75 lakh for eligible taxpayers and to have a list of manufacturers who shall be ineligible for Composition scheme. However, no clear decision was taken regarding the applicability of this decision to the Special Category States: (ii) To tax insulin formulations of all types at the rate of 5% instead of the proposed rates of 12%/5%; (iii) to exempt tax on children s picture, drawing or coloring books instead of the proposed tax rate of 12%; (iv) To tax bambo

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icals (Chapter heading 4901, 4902 of HSN); (iii) Tax proposals on Legal Services; (iv) Tax proposals on Sponsorship Services; (v) tax rate on admission to cinema theatres. He took up discussion on each of these issues separately. Proposals for exemption from tax: 10.1. The Secretary stated that the Fitment Committee had recommended exemption from GST on four different categories of services. He stated that the first proposal was a recommendation to exempt from tax the Insurance services provided under Mukhya Mantri Vyapari Durghatna Beema Yojana. The ACS, Uttar Pradesh informed that traders were issued Mukhya Mantri Vvapari Durghatna Beema Yojana for an amount of ₹ 5 lakh and the Government paid the entire premium and that it should be exempted from tax. The Council agreed to the proposal. 10.2. The Secretary stated that the second proposal on exemption related to services provided to Government, a local authority or a Governmental authority by way of any activity in

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by the Central Government or the State Government. The ACS, Uttar Pradesh recalled that during the Officers meeting held today in the morning, he had stated that under some of the Government of India schemes, even if part premium was paid by the Government, Service Tax on the same was exempted. The Secretary stated that where 100% premium was paid by the Government, the exemption from tax already stood approved by the Council. However, if there were other schemes where Government paid part premium and if a State Government wanted exemption from tax, it should be brought before the Council for approval. Secretary also added that since insurance schemes where 100% premium was paid by the Government have been decided to be exempted, there would be no need to separately exempt Mukhya Mantri Vyapari Durghatna Beema Yojana of Uttar Pradesh. The Council approved the proposal. 10.4. The Secretary informed that the fourth proposal on exemption related to services provided to the Government

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, but various job work services provided in these sectors would attract tax at the standard rate of 18%. The Committee felt that this could create tax inversion and consequent input tax credit accumulation in these sectors. It would also create a tax disadvantage for manufacturers who outsourced intermediate processes to job workers vis-a-vis those manufacturers who carried out all the processes in house. This would discourage outsourcing and would be against the interest of a large number of small job workers in these sectors. He recalled that in the 14 th Meeting of the Council (held on 18-19 May 2017). it was decided to withdraw the exemption in respect of job-work services relating to textiles and cut and polished diamonds and gold jewellery and as a result, these job-work services would attract the standard rate of 18%. 10.5.1. The Secretary informed that to resolve this issue, the Fitment Committee had recommended that job work services in relation to (a) textile yarns (other

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hat job work services in relation to printing of newspapers would attract tax at the rate of 5%. However, job work services in relation to printing of books, journals and periodicals would attract the tax rate of 18% as against the currently applicable Nil rate of Service Tax. He recalled that the Council in its 14 th Meeting (held on 18-19 May 2017) had decided to withdraw the exemption in respect of job-work services relating to printing and as a result, these job-work services would attract the standard rate of 18%. He observed that this could create tax inversion and consequent input tax credit accumulation in case of journals and periodicals and additional cost in case of books. This would also create a tax disadvantage for publishers of books, journals and periodicals who outsourced printing to job workers vis-a-vis those publishers who carried out all processes in house. This would discourage outsourcing and would be against the interest of job workers in these sectors. He adde

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Council approved this suggestion. Legal Services 10.6. The Secretary explained that the Fitment Committee had proposed to tax the services provided by partnership firm of advocates and LLPs (Limited Liability Partnership) under forward charge. He stated that this would help them utilise their input tax credit. However, it was proposed to exempt individual advocates (including senior advocates) from obtaining registration under CGST/SGST Act [section 23 (2) of the CGST Act. 10.6.1. Explaining the rationale for the proposal, he stated that services provided by (i)an individual advocate or a partnership firm of advocates to another advocate or partnership firm of advocates or (ii) an individual advocate or a partnership firm of advocates to any person other than business entity were exempt from tax under GST regime. Services provided by an individual advocate or firm of advocates by way of legal services were under reverse charge for payment of tax. He further explained that a

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ocates and LLPs under forward charge and to maintain status quo of charging tax under reverse charge. The Council approved that individual advocates (including senior advocates) shall be exempt from registration requirement but decided to maintain status quo in respect of mode of taxation of legal services by partnership firm of advocates and LLP. Sponsorship Services 10.7. The Secretary explained that under this agenda item, it was proposed to tax the sponsorship services provided by body corporate [as defined in section 2 (11) of Companies Act 2013] under forward charge as this would help them utilise their input tax credit. He stated that the Fitment Committee had proposed to exempt individual sponsorship service providers (including players) from obtaining registration under CGST/SGST Act [section 23(2) of the CGST Act]. He stated that the justification for exemption from registration for individuals providing sponsorship service was that they would face no compliance burd

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duced from 28% to 18%, so that the local bodies were also able to tax the same. West Bengal wanted a lower rate of tax for regional films or no tax below a certain threshold, say ₹ 100 per ticket for regional films. West Bengal had informed that presently Bengali films attracted lower rate of entertainment tax, and their representative was of the view that a lower rate was required to support and promote the regional film industry. Karnataka stated that they had issued a Government Order that no cinema theatre including multiplexes would charge more than ₹ 200 per ticket for a regional film. Rajasthan and Kerala supported the rate of tax at 28% (as approved by the Council) for admission to cinema theatres for all films. They did not want a carve-out for regional films as t would be distortionary. Haryana wanted to continue with the tax rate of 28% for admission to cinema theatres. Uttar Pradesh did not support a lower rate for regional films and stated that if a lower rate

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atres. It was also pointed out that regional films enjoyed a lower tax rate only in the Sate concerned. The States did not levy a lower rate of entertainment tax on all regional films but only films in their language. As the country was going in for One India-One Tax under GST, it might not be possible to have a lower rate in different States for different regional films. It would be better if the States reimbursed the regional film industry or the cinema theatres screening regional films in any manner that would best promote regional films. 10.8.2. The Hon ble Minister from West Bengal stated that almost 90% of the States had Nil rate of tax on regional cinema and not to have a lower rate of tax on regional cinema would tantamount to killing regional diversity. The Hon ble Minister from Andhra Pradesh stated that there should be difference between the rate of tax for national films and regional films. He suggested that the rate of tax for regional films should be Nil. The Hon ble M

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s granted tax exemption to regional films and it was the only item under GST where local bodies could also impose tax. He observed that States could give refund of GST for regional language films as each State would have different regional language. The Hon ble Chief Minister of Puducherry stated that States did not have adequate resources to provide reimbursement. The Hon ble Minister from Uttar Pradesh opposed the suggestion of exempting regional cinema from tax and stated that this would lead to loss of revenue for every State. The Hon ble Deputy Chief Minister of Delhi stated that the Government as well as the society supported some kinds of cinema and theatre, and this should be encouraged through imposition of lower rate of tax. The Hon ble Chief Minister of Puducherry stated that there was still some difference in the film viewing habits between rural and urban areas/population. The Hon ble Minister from Kerala stated that he had discussed this issue with a few film organisation

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be ₹ 100. The Hon ble Deputy Chief Minister of Delhi stated that no cinema in Delhi would be covered under the exemption scheme if the ticket value was kept at ₹ 100. The Hon ble Minister from Maharashtra suggested that the rate of tax on admission to cinema theatres should be kept at 18% so that there was room for local bodies to levy tax over and above this rate. He added that a service charge of 10% was also being charged by every State for cleaning the theatres. The Hon ble Chairperson stated that normal ticket for cinema theatres, particularly multiplexes, was ₹ 400 to ₹ 500 per head. The Hon ble Minister from Karnataka stated that differential rate of tax on cinema theatre based on the ticket price would not serve the purpose of the vernacular language. The Principal Secretary, Telangana stated that the rate of 28% was optically very high and suggested to keep the rate at 18%. He stated that this would also enable local bodies to levy additional tax. 10

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rate of tax on admission to cinema theatre should be 18%. After further discussion, the Council agreed that the rate of tax on admission to cinema theatres shall be 28% with the exception that the rate of tax shall be 18% if the price of the ticket for admission to cinema theatre was ₹ 100 or less. 11. For agenda item 3, in respect of rate of tax on supply of services, the Council approved the following- 11.1. To exempt from tax, supply of pure services provided to Government. a local authority or a Governmental authority by way of any activity in relation to any function entrusted to a Panchayat under Article 243G of the Constitution or any function entrusted to a Municipality under Article 243W of the Constitution: 11.2. To exempt from tax, services provided to the Government under any insurance scheme provided hundred percent premium was paid by the Central Government or the State Government and this would also cover the Mukhya Mantri Vyapari Durghatna Beema Yojana

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of mode of taxation of legal services by partnership firm of advocates and LLPs: 11.7. To exempt individuals providing sponsorship service from registration under the GST regime and to continue with the status quo in respect of mode of taxation of sponsorship services; 11.8. To tax admission to cinema theatres at the rate of 28% with the exception that the rate of tax shall be 18% if the price of the ticket for admission to cinema theatre was ₹ 100 or less. Agenda Item 4: Any other agenda item with the permission of the Chairperson: 12. Introducing this agenda item, the Secretary stated that with the permission of the Chairperson, the following two additional agenda items had been placed before the Council: (i) Notification of certain sections of the GST Acts; (ii) Amendment in Rule 19 of the Registration Rules for additional method of authentication. He took up discussion on these two agenda items. (i) Notification of certain sections of the GST Acts 12.1

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ake registration. He further stated that during its 14 th Meeting (held on 18-19 May 2017), the Council had approved the issuance of a notification under Section 146 the CGST Act to the effect that wwwgst.gov.in shall be the Common Goods and Services Tax Electronic Portal for facilitating conduct of different business processes. Therefore, it was required that section 146 of the CGST Act should be notified. He further added that during the 14 th and 15 th Meeting of the Council, nine GST Rules namely, registration: composition levy; payment; refund; return; input tax credit; tax invoice; valuation; and transition were approved. Section 164 of the CGST Act and Section 22 of the lGST Act provided for power to the Government to make rules, on the recommendations of the Council, to carry out the provisions of the respective Acts. In order to notify the above mentioned nine Rules, in particular Rules on Registration and Composition levy, it was essential to notify Section 164 and Section

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urnover was required to get registered. Section 9 (3) of the CGST Act and Section 5 (3) of the lGST Act empowered the Government to notify categories of supply of goods or services or both, the tax on which shall be paid on reverse charge basis by the recipient of such goods or services or both. In the 14 th Meeting of the Council (held on 18-19 May 2017), list of services on which reverse charge liability would be created under GST was approved by the GST Council. In some cases, the liability under the Act had been fully cast upon the recipient of supply (100% reverse charge). In terms of Section 9 (3) and Section 5 (3) of the CGST Act and IGST Act respectively, though the supplies were taxable but the liability of payment of tax and compliance with the law had been shifted upon the recipient. Therefore, suppliers, whose supplies were taxable under 100% reverse charge basis, were required to be exempted from registration. Sub-section (2) of section 23 of the CGST Act provided that th

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ning registration; vii. that those States which had enacted their SGST Acts could also notify the same Sections. 12.1.3. The Secretary explained that this agenda item proposed to notify all those Sections where Rules were approved so that the relevant Rules could be notified. He suggested that as Rules on Accounts and Records had been approved, Sections 35 and 36 relating to accounts and records could also now be added to the list of Sections to be notified from the appointed date. The Council approved the proposal to notify various Sections of the CGST Act contained in the agenda notes as also Sections 35 and 36 of the CGST Act. The Council also approved that the States that had enacted their SGST Acts could also notify the same Sections. (ii) Amendment in Rule 19 of the Registration Rules for additional method of authentication 12.2. Introducing this agenda item, the Secretary stated that the Council had approved the GST Registration Rules in its 14 th Meeting (held o

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approximately ₹ 2500, valid for a period ranging from one year to three years) and cumbersome with several documentary requirements. The companies giving one-time e-signature were limited in number and their quality of service was uneven. The taxpayers in other Slates were able to migrate with Aadhaar based EVC which was free of cost. He stated that it was reported that this had effectively prevented the small and medium dealers of Assam from migrating to GST from the existing tax regime. Similar problem was being faced in the State of Meghalaya where Aadhaar had not yet been implemented. He stated that keeping in view the problems faced by Assam and Meghalaya, it was proposed to provide another alternative for authentication in Rule 19 of the GST Registration Rules, namely, authentication based on bank account of the taxpayer and that a suitable text in this regard as presented, in Rule 19, namely through electronic verification service provided by banks based on net-banking or

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m the appointed date; 13.4. Suppliers whose supplies are taxable under 100% reverse charge basis shall be exempted from obtaining registration by exercising powers under sub-section (2) of Section 23 of the CGST Act and the SGST Acts; 13.5. To amend Rule 19 of Registration Rules and retain only those methods of authentication as mentioned in the Information Technology Act 2000 and all other means of verification lo be notified by the Central Board of Excise Customs (CBEC). Other issues 14. The Hon ble Minister from West Bengal stated that there was a front-page news in today s edition of the Times of India that Delhi traders were not ready for GST implementation and that there would be serious problems if GST was implemented from 1 July, 2017 as many tasks were still to be completed. He staled that States were in a comfortable situation as they were assured of compensation for five years at a fixed annual growth rate of 14% but it should be considered at the national lev

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Goods and Services Tax – Started By: – MohanLal tiwari – Dated:- 10-6-2017 Last Replied Date:- 11-6-2017 – Sir, We are manufacturer of tailor made castings / machinery parts meant for a particular customer for their specific use. We are generally taking mobilization advance against Advance Bank Guarantee from our customers to ensure they will take ordered materials after their readiness. If they cancel order or do not take materials, it will be just scrap for us. from 1st July'17 onward, GST will be payable on such advance as per rate applicable for goods, kindly advise for :- 1. Whether we should charge GST in our Proforma Invoice for advance payment. 2. Whether Buyer is legally bound to pay GST alongwith advance payment. 3. Whether t

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Goods and Services Tax – Started By: – Jayant Gokahle – Dated:- 10-6-2017 Last Replied Date:- 11-6-2017 – We are a manufacturing company with Excise and VAT Regn. Now we have registered under GST also. We export goods as a trader also.When we will buy goods post 01 Jul 17, for export as a trader, our supplier will charge us GST at applicable rate. To export these goods, can we take credit in our GST account and export the goods without paying GST as export is exempt. orWe have to claim refund o

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GSTN holds a Review Meeting with GST Suvidha Providers (GSPs) to Assess Readiness for GST roll-out from 01st July, 2017; GSPs advised to continue to visit the GSP ecosystem webpage on the GSTN website (www.gstn.org/ecosystem) for all information, latest updates and guidelines – Goods and Services Tax – GST – Dated:- 10-6-2017 – GSTN called a meeting with all the GST Suvidha Providers (GSPs) at their office at Aero City in national capital yesterday. There are 34 GSPs that have been selected by GSTN to provide additional channel of filing returns and other compliances related to GST. GSPs are expected to help large businesses with complex and varied internal processes to comply with the GST regime that becomes effective from 01st July 2017.

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fications, GSTN will also make available live APIs on the sandbox for testing of the codes that the GSPs will modify/develop. The dates for the release of the specifications and the Live APIs for various returns for testing/integration were communicated to all the GSPs. The specifications of GSR-1 return (for uploading the supply data) was released yesterday and the live API will be made available on 29th June. The dates of release of specification and live APIs for the remaining GST return forms were also discussed and communicated. Staggered delivery of specifications and live APIs was agreed by all to manage the changes made in the rules and forms recently. GSTN also published and explained the method and manner in which the GSPs would b

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ers, GSTN has come-up with an Offline Tool where data on invoices (business to business), exports, supplies to consumers etc., which are required to create GSTR-1 (Outward Supply Return), can be entered in an excel sheet in offline mode (without being connected to Internet). At desired interval, the tool can be run to upload all such data on the portal. Only while uploading the data on GST portal, Internet connectivity will be required. The Offline tool will be provided free of cost and taxpayers will be able to download it from the GST portal (www.gst.gov.in) from last week of June. GSTN will release the format of Excel in which businesses will start maintaining the data from 1st of July for using the free offline tool for uploading the in

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Goods and Services Tax – GST – Dated:- 10-6-2017 – Introduction: The introduction of Goods and Services Tax (GST) would be a very significant step in the field of indirect tax reforms in India. By amalgamating a large number of Central and State taxes into a single tax, it would mitigate cascading or double taxation in a major way and pave the way for a common national market. From the consumer point of view, the biggest advantage would be in terms of a reduction in the overall tax burden on goods, which is currently estimated to be around 25%-30%. Introduction of GST would also make Indian products competitive in the domestic and international markets. Studies show that this would have a boosting impact on economic growth. Last but not the least, this tax, because of its transparent and self-policing character, would be easier to administer. Genesis: 2. The idea of moving towards the GST was first mooted by the then Union Finance Minister in his Budget for 2006-07. Initially, it was

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levy tax on the manufacture of goods (except alcoholic liquor for human consumption, opium, narcotics etc.) while the States have the powers to levy tax on sale of goods. In case of inter-State sales, the Centre has the power to levy a tax (the Central Sales Tax) but, the tax is collected and retained entirely by the originating States. As for services, it is the Centre alone that is empowered to levy service tax. Since the States are not empowered to levy any tax on the sale or purchase of goods in the course of their importation into or exportation from India, the Centre levies and collects this tax as additional duties of customs, which is in addition to the Basic Customs Duty. This additional duty of customs (commonly known as CVD and SAD) counter balances excise duties, sales tax, State VAT and other taxes levied on the like domestic product. Introduction of GST would require amendments in the Constitution so as to concurrently empower the Centre and the States to levy and collect

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or commerce (including imports) in goods or services. The Central Government will have the power to levy excise duty in addition to the GST on tobacco and tobacco products. The tax on supply of five specified petroleum products namely crude, high speed diesel, petrol, ATF and natural gas would be levied from a later date on the recommendation of GST Council. 4.1 A Goods and Services Tax Council (GSTC) shall be constituted comprising the Union Finance Minister, the Minister of State (Revenue) and the State Finance Ministers to recommend on the GST rate, exemption and thresholds, taxes to be subsumed and other features. This mechanism would ensure some degree of harmonization on different aspects of GST between the Centre and the States as well as across States. One half of the total number of members of GSTC would form quorum in meetings of GSTC. Decision in GSTC would be taken by a majority of not less than three-fourth of weighted votes cast. Centre and minimum of 20 States would be

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y the GSTC: (i) The threshold exemption limit would be ₹ 20 lakh. For special category States enumerated in article 279A of the Constitution, threshold exemption limit has been fixed at ₹ 10 lakh. (ii) Composition threshold shall be ₹ 50 lakh. Composition scheme shall not be available to inter-State suppliers, service providers (except restaurant service) and specified category of manufacturers. (iii) Existing tax incentive schemes of Central or State governments may be continued by respective government by way of reimbursement through budgetary route. The schemes, in the present form, would not continue in GST. (iv) There would be four tax rates namely 5%, 12%, 18% and 28%. The tax rates for different goods and services have been finalized. Besides, some goods and services would be under the list of exempt items. The exempted services has been finalized which is same as the services exempted under existing service tax law, except services supplied by Goods and Servic

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divided equally in the ratio of 50% each for the Central and State tax administration. (vii) Powers under the IGST Act shall also be cross-empowered on the same basis as under CGST and SGST Acts with few exceptions. (viii) Power to collect GST in territorial waters shall be delegated by Central Government to the States. (ix) Formula and mechanism for GST Compensation Cess has been finalised. (x) Nine rules on registration, composition levy, valuation, tax invoice, input tax credit, payment, returns, refund and transitional provisions have been recommended. (xi) www.gst.gov.in, managed by GSTN, shall be the Common Goods and Services Tax Electronic Portal. (xii) Rate of interest on delayed payments and delayed refund has been recommended. (xiii) Rate of TCS has been recommended. Salient Features of GST: 6. The salient features of GST are as under: (i) GST would be applicable on supply of goods or services as against the present concept of tax on the manufacture of goods or on sale of go

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p; IGST would be levied at rates to be mutually agreed upon by the Centre and the States under the aegis of the GSTC. (viii) GST would replace the following taxes currently levied and collected by the Centre: a) Central Excise Duty; b) Duties of Excise (Medicinal and Toilet Preparations); c) Additional Duties of Excise (Goods of Special Importance); d) Additional Duties of Excise (Textiles and Textile Products); e) Additional Duties of Customs (commonly known as CVD); f) Special Additional Duty of Customs (SAD); g) Service Tax; h) Cesses and surcharges insofar as they relate to supply of goods or services. (ix) State taxes that would be subsumed within the GST are: a) State VAT; b) Central Sales Tax; c) Purchase Tax; d) Luxury Tax; e) Entry Tax (All forms); f) Entertainment Tax (except those levied by the local bodies); g) Taxes on advertisements; h) Taxes on lotteries, betting and gambling; i) State cesses and surcharges insofar as they relate to supply of goods or services. (x) GST w

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or the Centre and the States as well as across States as far as possible. (xv) Exports would be zero-rated. (xvi) Credit of CGST paid on inputs may be used only for paying CGST on the output and the credit of SGST/UTGST paid on inputs may be used only for paying SGST/UTGST. In other words, the two streams of input tax credit (ITC) cannot be cross utilized, except in specified circumstances of inter-State supplies for payment of IGST. The credit would be permitted to be utilized in the following manner: a) ITC of CGST allowed for payment of CGST & IGST in that order; b) ITC of SGST allowed for payment of SGST & IGST in that order; c) ITC of UTGST allowed for payment of UTGST & IGST in that order; d) ITC of IGST allowed for payment of IGST, CGST & SGST/UTGST in that order. ITC of CGST cannot be used for payment of SGST/UTGST and vice versa. (xvii) Accounts would be settled periodically between the Centre and the State to ensure that the credit of SGST used for payment of

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agencies, who are recipients of supply, to deduct tax at the rate of 1% from the payment made or credited to the supplier where total value of supply, under a contract, exceeds two lakh and fifty thousand rupees. (xxii) Refund of tax to be sought by taxpayer or by any other person who has borne the incidence of tax within two years from the relevant date. (xxiii) Obligation on electronic commerce operators to collect tax at source , at such rate not exceeding two per cent. (2%) of net value of taxable supplies, out of payments to suppliers supplying goods or services through their portals. (xxiv) System of self-assessment of the taxes payable by the registered person. (xxv) Audit of registered persons to be conducted in order to verify compliance with the provisions of Act. (xxvi) Limitation period for raising demand is three (3) years from the due date of filing of annual return or from the date of erroneous refund for raising demand for short-payment or non-payment of tax or erroneo

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uling Authority would be constituted by States in order to enable the taxpayer to seek a binding clarity on taxation matters from the department. Centre would adopt such authority under CGST Act. (xxxiii) An anti-profiteering clause has been provided in order to ensure that business passes on the benefit of reduced tax incidence on goods or services or both to the consumers. (xxxiv) Elaborate transitional provisions have been provided for smooth transition of existing taxpayers to GST regime. Benefits of GST: 7. (A) Make in India: (i) Will help to create a unified common national market for India, giving a boost to Foreign investment and Make in India campaign; (ii) Will prevent cascading of taxes as Input Tax Credit will be available across goods and services at every stage of supply; (iii) Harmonization of laws, procedures and rates of tax; (iv) It will boost export and manufacturing activity, generate more employment and thus increase GDP with gainful employment leading to substanti

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present governing our indirect tax system leading to simplification and uniformity; (iii) Reduction in compliance costs – No multiple record keeping for a variety of taxes- so lesser investment of resources and manpower in maintaining records; (iv) Simplified and automated procedures for various processes such as registration, returns, refunds, tax payments, etc; (v) All interaction to be through the common GSTN portal- so less public interface between the taxpayer and the tax administration; (vi) Will improve environment of compliance as all returns to be filed online, input credits to be verified online, encouraging more paper trail of transactions; (vii) Common procedures for registration of taxpayers, refund of taxes, uniform formats of tax return, common tax base, common system of classification of goods and services will lend greater certainty to taxation system; (viii) Timelines to be provided for important activities like obtaining registration, refunds, etc; (ix) Electronic m

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ng back-end IT modules for 27 States who have opted for the same. The migration of existing taxpayers has already started from November, 2016. The Revenue department of both Centre and States are pursuing the presently registered taxpayers to complete the necessary formalities on the IT system operated by GSTN for successful migration. About 75 percent of existing registrants have already migrated to the GST systems. 8.1 GSTN has selected 34 IT, ITeS and financial technology companies, to be called GST Suvidha Providers (GSPs). GSPs would develop applications to be used by taxpayers for interacting with the GSTN. Other Legislative Requirements: 9. Four Laws namely CGST Act, UTGST Act, IGST Act and GST (Compensation to States) Act have been passed by the Parliament and since been notified on 12th April, 2017. Twenty three States have passed SGST Act. Other States are expected to pass them in the month of June, 2017. 9.1 The levy of the tax can commence only after the GST Law has been en

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of GST System for CBEC. The name of IT project of CBEC under GST is SAKSHAM involving a total project value of ₹ 2,256 crores. 10.1 It was also felt that the organizational structure and deployment of human resources needed a review for smooth and effective implementation of GST. A Working Group has after extensive deliberations and studies, submitted its Report which has been approved by the Government. 10.2 Augmentation of human resources would be necessary to handle large taxpayers base in GST scattered across the length and breadth of the country. Capacity building, particularly in the field of Accountancy and Information Technology for the departmental officers has to be taken up in a big way. A massive four-tier training programme is being conducted under the leadership of NACEN. This training project is aimed at imparting training on GST law and procedures to more than 60,000 officers of CBEC and Commercial Tax officers of State Governments. Officers of the office of CAG a

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GOODS & SERVICES TAX (GST)(Status as on 3rd June, 2017) – Goods and Services Tax – GST – Dated:- 10-6-2017 – GOODS & SERVICES TAX (GST)(Status as on 3rd June, 2017) – News – Press release

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Goods and Services Tax – Started By: – Vivek anandhan – Dated:- 10-6-2017 Last Replied Date:- 14-7-2017 – Dear Expert Whether CST 2%( paid on Inter state purchase ) credit allowed on opening stock under GST regime RegardsVivek – Reply By Vipul Singh – The Reply = The answer is big NOCST paid@ 2% on opening stock will not be allowed in GST regime. – Reply By Himansu Sha – The Reply = The credit which is not allowable in the existing law will also not be allowable under gst act – Reply By Raman S

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Goods and Services Tax – GST – By: – Shripada Hegde – Dated:- 10-6-2017 – One of the controversies or discrepancies attached with the Export of Service under the present taxation system for services is the receipt of consideration or payment in INR. This article tries to put light on the Status Quo and the effect under GST Regime. In the present taxation system for services, in order to consider a service as export of service, conditions under Rule 6A of Service Tax Rules, 1994 has to be satisfied. Before the incorporation of Rule 6A, export of services were governed by Export of Service Rules, 2005. One of the conditions is that the payment for the services rendered has to be received in Convertible Foreign Exchange. In the real world of

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ndia, payment in rupees from the account of a bank situated in any country outside India maintained with an authorised dealer, the payment in rupees shall be deemed to have repatriated the realized foreign exchange to India as per para 4 of Notification No. FEMA 9/2000-RB, dated 3rd May 2000. From Notification No. FEMA 14/2000-RB, dated 3rd May 2000, it is clear that payment in rupees from account situated in any country (other than a member country of Asian Clearing Union or Nepal or Bhutan) is a manner of receipt of foreign exchange. Relying on the Judgement of the apex court in case of J.B. Boda and Company the authority has expressed an opinion that when a foreign bank is maintaining Indian rupees in their account obviously, such Indian

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rvice under Section 2(6) of IGST Act. The said sub-section is reproduced below. (6) export of services means the supply of any service when,- (i) the supplier of service is located in India; (ii) the recipient of service is located outside India; (iii) the place of supply of service is outside India; (iv) the payment for such service has been received by the supplier of service in convertible foreign exchange; and (v) the supplier of service and the recipient of service are not merely establishments of a distinct person in accordance with Explanation 1 in section 8 It can be noted that the condition related to receipt in foreign exchange remains the same except the fact that it has been incorporated as definition. Further, no separate defin

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Goods and Services Tax – GST – By: – Dr. Sanjiv Agarwal – Dated:- 10-6-2017 Last Replied Date:- 12-6-2017 – The GST Council meeting held on 3rd June, 2017 at New Delhi succeeded on completing the pending issues on the agenda which inter alia included fitment of rates on textiles, bidi's, biscuits, gold & jewellery etc. Also, it cleared the rules as well as reteriated the stand that GST be implemented from July 1, 2017. Though West Bengal asked for a postponement till September, at the end, GSTC has announced 1st July, 2017 only as the date for implementation of GST law. Transition rules have also been cleared with some changes, most important being enhancement of limit of taking credit on closing stock by dealers from 40% to 60% an

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below ₹ 500) and @ 18% (costing > ₹ 500) Rough diamonds @ 0.25% Biscuits @ 18% Increase on deemed credit to 60% instead of presently proposed 40% if goods in GST slab of 18% or more; 40% if goods are in GST slab of less than 18% Differential rates for various textile items from zero percent to 28% [Jute & silk – nil; cotton fiber, yarn, fabric – 5%; readymade garments -5% (below ₹ 1000), 12% (above ₹ 1000), manmade yarn – 18%] GSTN fully geared up for 1st July roll out Committee for anti profiteering to be setup Next (16th) meeting of GSTC on 11 June, 2017 It was also decided to refined 50 percent of tax imposed on defense canteens. While deciding on hike in allowing input tax credit from 40% to 60% in case o

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State as well as trade and industry dealing with the State. The next (16th) meeting of GST Council has been scheduled for 11th June, 2017 to review the rates for refinement if the need be and to agree on the implementation of anti profiteering provision which is going to ensure that GST does not result into inflation. Also, the rules relating to e-way bills will be finalized. While there is no intention to seek postponement by a month or so in this write – up, but it can be said that there is no need for a rigid date of 1st July, 2017. If GST roll out is deferred by one or two months, heavens are not going to tall but would only add to comfort, confidence and ease of compliance and smooth transition. So deferment could be thought of at this

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PUBLIC NOTICE No. 07/2017 Dated:- 10-6-2017 Trade Notice – Circulars – GST – OFFICE OF THE COMMISSIONER OF CENTRAL EXCISE SERVICE TAX 7th FLOOR, TRADE CENTRE, BUNTS HOSTEL ROAD, MANGALURU-575 003 C. No. IV/16/01/2017 Tech. Date: 10.06.2017 PUBLIC NOTICE No. 07/2017 Sub: – Migration to GST- Mandatory requirement of PAN for all including government departments for registrations- Reg. As you are aware the GST regime is proposed to be introduced w.e.f 1 St July, 2017. Section 139 of the GST Act, 2017 provides for migration of existing tax payers to GST. In this regard attention is invited to Section 25(6) of the said Act which stipulates that: Every person shall have a

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Goods and Services Tax – Started By: – SANTOSH TIWARI – Dated:- 9-6-2017 Last Replied Date:- 11-7-2017 – Dear Experts,Please suggest ,1.What rate will be charge on Exhibiton?2. If exhibition is in outside the state, how will we send material for exhibition, if we received order for exhibiton with material ? – Reply By Rajagopalan Ranganathan – The Reply = Sir,1) The rate of service tax leviable on Exhibition is 18%.2) When materials are supplied outside the state IGST is leviable and rates unde

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Goods and Services Tax – GST – Dated:- 9-6-2017 – The Union Minister for Finance, Defence and Corporate Affairs, Shri Arun Jaitley will chair the 16th Meeting of the GST Council scheduled to be held on Sunday, 11th June, 2017 at Vigyan Bhavan in the national capital. The one day Meeting will also be attended among others by the Finance Ministers of different States and UTs (having elected assembly) being the members of the GST Council. Main agenda items of the 16th GST Council Meeting include c

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Goods and Services Tax – GST – Dated:- 9-6-2017 – As decided in the 14th Meeting of the GST Council held on 18th-19th May, 2017 in Srinagar, J&K, 18 Sectoral Groups have been constituted representing various sectors of the economy in order to ensure smooth roll-out of GST. These 18 Sectoral Groups representing various sectors of the economy and containing Senior Officers of the Centre and the States are being set-up to ensure smooth implementation of GST by timely responding to the issues and problems of their respective Sector(s). In fact, they are being with the following objectives: i) Interact and examine representations received from trade and industry associations/bodies of their respective sector. ii) Highlight specific issues f

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ar, Chief Commissioner, CBEC Ms. Smaraki Mahapatra, CCT, West Bengal 5 Transport & Logistics J.M. Kennedy, ADG, DRI, CBEC Ms. Sujatha Chaturvedi, Pr. Secretary, Bihar 6 Textiles Yogendra Garg, Commissioner, CBEC Ms. Mona Khandhar, Secretary (EA), Gujarat 7 MSMEs (incl. job work) Manish Sinha, Commissioner, CBEC & GST Council H. Rajesh Prasad, Commissioner, VAT, Delhi 8 Oil & Gas (upstream & downstream) P.K. Jain, Chief Commissioner, (AR), CBEC Anurag Goel, CCT, Assam 9 Gems & Jewellery Reyaz Ahmad, Director (TRU) Dr. P.D. Vaghela, CCT, Gujarat 10 Services received and provided by Government D.P. Nagendra Kumar, Pr. Commissioner, CBEC Arun Mishra, Additional Secretary (CT) Bihar 11 Food Processing Ajay Jain, Chief Commiss

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Goods and Services Tax – GST – Dated:- 9-6-2017 – Srinagar, Jun 8 (PTI) – Jammu and Kashmir Governor N N Vohra today summoned the state legislature for a special session on June 17 to discuss the draft GST legislation approved by the state government. Yesterday, the state government had approved the draft legislation and expressed its desire to hold a special assembly session to discuss the specific issue of extension of GST to the state. While the GST bill passed by the Parliament is not applicable to Jammu and Kashmir in its present form, the state has brought a modified version of the legislation that would neither infringe upon the its special status under Article 370 of the constitution, nor compromise the special taxation powers enjo

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GST TAX RATE FOR MACHINED CASTING – Goods and Services Tax – Started By: – Suresh Babu – Dated:- 9-6-2017 Last Replied Date:- 9-6-2017 – Please suggest the GST tax rate for machined casting HSN code i

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Goods and Services Tax – Started By: – RAHUL KHAKHRA – Dated:- 9-6-2017 Last Replied Date:- 30-12-1899 – We have query on GST Rate Schedule for goods (18th May-2017) for Chapter 30 (Pharmaceutical products). Against Ch.30, the GST tariff has been specified at 5% for the the products i.e- Drugs or medicines including their salts and esters and diagnostic test kits, specified in List 3 or List 4 appended to the notification No.12/2012-Customs, dated the 17th March, 2012, In List.4 – at sr.no (32)

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Goods and Services Tax – Started By: – Suresh Babu – Dated:- 9-6-2017 Last Replied Date:- 11-7-2017 – If I raise the sales invoice its come packing charges and freight amount. It is also calculate for GST or only the basic value to be calculated – Reply By PAWAN KUMAR – The Reply = Dear Sir,As per my view, gst would also payable on packing charges and freight related to supply of goods. – Reply By Himansu Sha – The Reply = for valuation purpose packing and other incidentional charges are includ

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Goods and Services Tax – GST – By: – Sasidharan Gopalakrishnan – Dated:- 9-6-2017 Last Replied Date:- 30-12-1899 – When GST is implemented, the Central Excise Duty (CENVAT) leviable under the Central Excise Act 1944 (CE Act) will get replaced by CGST under the CGST Act 2017 (CGST Act) for all commodities including petroleum products falling under Chapter 27 of HSN, except for the five specified petroleum products, excluded from GST for the time being.. These five petroleum products viz. Petroleum Crude, Motor Spirit commonly known as Petrol, High Speed Diesel, Aviation Turbine Fuel and Natural Gas have temporarily been kept out of GST and GST Council shall decide the date from which they shall be included in GST. (Ref: Q.6 of FAQ on GST (2nd Edition) dated 31.03.2017 ) This is sought to be achieved through the following statutory changes:: Sec 9 of the CGST Act which authorizes the levy & collection of CGST contain the following provisions: QUOTE: 9. (1) Subject to the provisions

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section Sec 3 (vide The Taxation Laws Amendment Act 2017). This new Sec 3 of the CE Act authorizes levy & collection of Duty of Excise (CENVAT) at rates set forth in the Fourth Schedule, The Fourth Schedule which is inserted in CE Act through this amendment, is the extract of the existing First Schedule of Central Excise Tariff Act 1985, but containing only those items for which CENVAT is proposed to be continued. The GST Rate Schedule for Goods, finalized by the GST Council, prescribes the rates of GST for all commodities grouped under Chapter nos 1 to 98 of HSN classification. Out of the five specified petroleum products Petroleum Crude falls under HSN Heading 2709, Petrol,Diesel and ATF fall under HSN Heading 2710 along with other Petroleum Oils & Oils obtained from Bitumenous minerals, AND Natural Gas falls under HSN Heading 2711 along with other Petroleum Gases & other Gasesous Hydrocarbons. In the GST Rate Schedule for Goods, under Chapter 27- Petroleum products, the

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Natural Gas has not been expressly excluded. This indicates a GST liability at prescribed rates for Natural Gas alongwith other gases falling under HSN Heading 2711. Under the newly inserted Fourth Schedule of Central Excise Act 1944, which seeks to prescribe cenvat rates only for items sought to be retained under CENVAT , the following entries appear: 2710 Petroleum oils and oils obtained from bituminous minerals, other than crude; preparations not elsewhere specified or included, containing by weight 70% or more of petroleum oils or of oils obtained from bituminous minerals, these oils being the basic constituents of the preparations; waste oils – Petroleum oils and oils obtained from bituminous minerals (other than crude) and preparations not elsewhere specified or included, containing by weight 70% or more of petroleum oils or of oils obtained from bituminous minerals, these oils being the basic constituents of the preparations, other than those containing biodiesel and other than

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g oil and textile oil Kg. ….. 2710 19 80 Lubricating oil Kg. ….. 2710 19 90 Other Kg. ….. 2711 Petroleum gases and other gaseous hydrocarbons – Liquefied: 2711 11 00 – Natural gas Kg. 14% 2711 12 00 – Propane Kg. ….. 2711 13 00 – Butane Kg. ….. 2711 14 00 – Ethylene, propylene, butylene and butadiene Kg. ….. 2711 19 00 – Other Kg. ….. – In gaseous state: 2711 21 00 – Natural gas Kg. 14% 2711 29 00 – Other Kg. ….. It may be seen that , in the Fourth Schedule , under HSN 2710 12- Light oils & Preparations, all the types of Motor Spirits are listed under a common heading viz. Motor Spirit (commonly known as Petrol). This is not technically correct since all categories of products defined as Motor Spirits as per the Chapter Notes/Supplementary Notes under Chapter 27 are not commonly known as Petrol.t Motor Spirits as per HSN Chapter 27 are of different categories: 2710 12 11 – Special Boiling Spirits: with nominal boiling point

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n this connection that the existence of Motor Spirit under distinct categories other than Petrol, has already been recognized under the Central Excise Tariff by providing for separate rates of Duty for Motor Spirit commonly known as Petrol , Naphtha and SBPS(other than Petrol & Naphtha), the first two vide separate effective rates /exemptions prescribed in notification issued under Sec. 5A and the the last one by the Tariff Entry itself.. Similar is the case of Light Oils & Preparations other than Motor Spirit, falling under 2710 12 20-Natural Gasolene Liquid (NGL) and 271012 90- Others (other than NGL) for which CENVAT rates have been mentioned in Fourth Schedule, even though they are covered under GST. Here also Cenvat rates mentioned in the Fourth Schdeule need to be deleted or fully exempted under specific notification under Sec. 5A of CE Act 1944. In the case of Natural Gas, CENVAT rate has been prescribed under Fourth Schedule against Headings 2711 11 00 and 2711 21 00; B

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and ATF. At the same time, amended Central Excise Law (Fourth Schedule to the Act), prescribes Cenvat Rates not only for Petroleum Crude (Nil Rate), Petrol, Diesel, ATF and Natural Gas, but also for some other petroleum products and intermediates which will fall under HSN Headings 2710 12 11 , 2710 12 12 , 2710 12 13 , 2710 12 19, 2710 12 20 and 271012 90.. Thus Some Petroleum Products & intermediates falling under 2710 12 11 , 2710 12 12 , 2710 12 13 , 2710 12 19, 2710 12 20 and 271012 90, will be simultaneously liable for GST and Cenvat .- examples are SBPS (2710 12 11, Naphtha (2710 12 19) and Reformat (2710 12 19) With the above provisions in the GST Law and Central Excise Law co-existing, both GST and Cenvat would be chargeable on Natural Gas and some other Petroleum Products and intermediates like SBPS, Naphtha, and Reformat.. This needs to be rectified by appropriately correcting the entries against S.No. 27 / Chapter 27 in the GST Rate Schedule of Goods and the entries agai

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Goods and Services Tax – GST – By: – Pradeep Jain – Dated:- 9-6-2017 – The GST Council at its meeting on May 18, 19 has evolved a consensus on GST rates for goods and services, leading us closer to July 1 implementation. The underlying objective of rate declaration was clear for some time, which is to maintain the current effective indirect tax burden to control inflation and avoid surprises. The government has kept a large number of items under 18% tax slab. The government categorised 1211 items under various tax slabs. The products falling under tariff heading chapter 3305 will be charged at maximum rate of 28%. These are cosmetics items and covers hair dyes also. The rate of 28% is correct for such items. But the products like Heena pow

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he exemption from levy of central excise duty, the heena products also enjoy exemption from levy of taxes levied by the State Government. This levy of tax on Heena powder and Paste under GST contradicts the underlying objective of rate fitment i.e. to maintain current effective indirect tax burden under GST. Though Government Officials always gave intimation that there will be curtailment in present exemptions and abatements applied on goods and services but this is a very harsh provision on Heena Manufactures and Traders as their product is very low priced and ultimately paying such large amount of tax under GST will make it difficult to survive under new indirect taxation reform. Many associations from Sojat city in Rajasthan are gearing

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DGFT – Trade Notice No. 27/AM16 – Pune – Dated:- 9-6-2017 – GOVERNMENT OF INDIA MINISTRY OF COMMERCE AND INDUSTRY OFFICE OF THE JOINT DIRECTOR GENERAL OF FOREIGN TRADE, C BLOCK, PMT COMMERCIAL COMPLEX, SHANKARSETH ROAD, SWARGATE, PUNE – 411 037 Tel. No. 020-24442783/24449598 Fax. No. 020-24441577 Email: pune-dgft@nic.in Trade Notice No. 27/AM16 dated 09.06.2017 Sub: Constitution of GST Facilitation Cell – regarding To ensure smooth and successful rollout of GST w.e.f 1st July 2017, the likely d

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Goods and Services Tax – Started By: – SUSHIL GOYAL – Dated:- 8-6-2017 Last Replied Date:- 10-6-2017 – What is Credit Transfer Document, as an amendment in Cenvat Credit Rules is proposed by GST Council at its meeting held on 3.6.2017. – Reply By Rajagopalan Ranganathan – The Reply = Sir, The balance of cenvat credit as per your return filed under existing law prior to the appointed date for implementation of GST Law will be the document on the basis of which you will be allowed to transfer the balance of credit available with you to electronic credit ledger. The procedure for such transfer is given in rule 1 of GST – TRANSITIONAL PROVISIONS – Final Rules 04-06-2017. – Reply By Himansu Sha – The Reply = As per sec 140 of cgst act, the cred

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