Goods and Services Tax

Customs – 12/2017 – Dated:- 2-6-2017 – OFFICE OF THE COMMISSIONER OF CUSTOMS NEW CUSTOMS HOUSE, PANAMBUR, MANGALURU-575010 C.No. S-26/04/2016 Cus Tech Date: 02.06.2017 PUBLIC NOTICE NO. 12/2017 Subject: Declaration of GSTIN in Customs Documents-reg. Attention of the Importers, Exporters, Customs Brokers and the members of Trade is invited to the above mentioned subject. 2. As you are aware Goods and Services Tax will be rolled from 1st July, 2017. In view of this, Board has decided that declara

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Goods and Services Tax – Started By: – Ravinder Gupta – Dated:- 1-6-2017 Last Replied Date:- 20-7-2017 – Plz tell: what will be the rate of GST on work contracts? will it will be applicable on already ongoing works (started before GST) – Reply By Himansu Sha – The Reply = In my view the ongoing projects will be wcs. – Reply By Ganeshan Kalyani – The Reply = It is works contract service. – Reply By KASTURI SETHI – The Reply = New GST rate will be applicable on works contract services from the date of implementation of GST. – Reply By MUKUND THAKKAR – The Reply = if contract before GST kindly review the same, and make necessary changes in contract terns as per GST. – Reply By Himansu Sha – The Reply = For wcs, it should be immovable property

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s that are awarded pre-gst? The tender rates didnt imply gst in it. How is it the government wants to collect more tax when the tender was called pre-gst? And the quote didnt imply any gst implication – Reply By JAYACHANDRA KEERTHI – The Reply = Whether TDS is applicable for Works contract service in GST regime? – Reply By JAYACHANDRA KEERTHI – The Reply = Distination based tax will be charged or tax will be received where we recevied from order ? (i.e tax will be charged for Billed party or Ship't party) – Reply By Rudrayani Shedjale – The Reply = Previously Civil work contract services provided to Government Agency/Authority were exempted from serve tax. Now under GST is there such exemption?also whether sych Government Agecy/Authorit

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Goods and Services Tax – Started By: – Aitha RajyaLakshmi – Dated:- 1-6-2017 Last Replied Date:- 2-6-2017 – Sir,What are the provisions in respect to write off the stock as on the date of implementation of GST and the stock acquired after the implementation of GST? – Reply By Ganeshan Kalyani – The Reply = The corresponding input tax credit is required to be reversed. – Reply By MUKUND THAKKAR – The Reply = Rule 3(5B) in the Cenvat Credit Rules, 2004, to provide that writing off the value of in

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Goods and Services Tax – Started By: – Yatin Bhopi – Dated:- 31-5-2017 Last Replied Date:- 4-7-2017 – Dear expert, We are manufacturer and having factory in Maharashtra. Please let me know whether below transaction are inter state of intra state as per place of supply (section 10 of IGST act). Sr. No Bill to Ship to Terms of conditions Whether Intra-state\Inter state? 3 Maharashtra Delhi Ex-Works 5 Delhi Maharashtra Ex-Works 6 Delhi Maharashtra Transport by us (door Delivery) 7 Delhi Karnataka Ex-Works 9 Delhi Delhi Transport arrange by us to handover goods to customers transporter in Maharashtra. – Reply By Himansu Sha – The Reply = The place of service is decided basing upon several conditions under sec. 10. All such conditions to be con

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Goods and Services Tax – GST – Dated:- 31-5-2017 – Dr. Hasmukh Adhia, Revenue Secretary, Ministry of Finance, Government of India categorically stated that the Goods and Services Tax (GST) will be implemented from July 1, 2017. Dr Adhia was speaking at a Town Hall Meeting with GST stakeholders including Tax Assesses, Traders and representatives of Trade Unions in Bengaluru, Karnataka yesterday. The Meeting was jointly organized by the Chief Commissioner of Central Excise and Service Tax, Central Board of Excise & Customs (CBEC), Government of India and the Commissioner of Commercial Taxes, Government of Karnataka, as part of the Outreach Programme on GST. Speaking on the occasion, Dr. Adhia further said that the Karnataka Government ha

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larified the doubts of various stakeholders about different issues relating to GST. He also assured to reply to the queries and to clarify the doubts of people at large about GST through the GST Twitter handle. Speaking on the occasion, Shri Krishna Byre Gowda, Agriculture Minister, Government of Karnataka and Member of the GST Council spoke at length and explained the rationale of tax structure under GST regime. He also elaborated the contribution of GST Council under the Chairmanship of the Union Finance Minister Shri Arun Jaitley which took all the decisions so far unanimously and helped in reaching the present stage of GST implementation. He said that the GST is a major customer-friendly indirect tax reform. He said that the intention i

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Goods and Services Tax – GST – By: – Sanjeev Singhal – Dated:- 31-5-2017 – Value for supply of goods and services is important part of GST. For valuing any goods or services is subject matter of discussion and contentious in nature . Value means price of any goods or service on which tax to be imposed particularly when parties are related or distinct person. This has all been incorporated in Section 15 of the CGST Act,2017. Main basis of valuation is Transaction value which has not been defined in the Act but includes having price , between person not related and the price being sole consideration. In valuation one need to keep in mind the inclusion and exclusion from the price of goods and service on which tax under GST Shall be charged. Value of Taxable Supply The value of supply of goods or supply of services shall be transaction value that is price actually paid or payable where the supplier and recipient of supply is not related party and price is the sole consideration for suppl

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ffected if; i] discounts is given as per the agreement entered into at or before the supply and linked to relevant invoices. Ii] Input tax credit is reversed by the recipient of supply on such discount. Where the value can not be determined as per sub section 1, the same shall be determined as may be prescribed. Valuation Rules Value of supply of goods or service where the consideration is not wholly in money Value Shall be Open market value If OMV is not available, Total consideration in money. If above two are not available, value of supply of goods or service or both of like kind and quality. Example Where a new phone is supplied for ₹ 20000 along with the exchange of an old phone and if the price of the new phone without exchange is ₹ 24000, the open market value of the new phone is ₹ 24000. Value of goods or service or both between distinct or related person. Value shall be Open market value If OMV is not available, value of supply of goods or service or both of

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st of acquisition or cost of provision. Residual method for valuation of goods or services or both Where the value goods or services or both can not be determined as per the Rules 1 to 4, same can be fix by reasonable means consistent with principles and general provision of section 15 and these rules. In case of supply of services , the supplier may opt for this rule. Determination of value in respect of certain supplies Value of supply in relation to purchase and sale of foreign currency. At the option of supplier may be any hereinafter; a] The value of supply of service in purchase or sale of foreign currency including money changing shall be determined by supplier of service as follows: When currency used is INR, difference of buying and selling and RBI rate for currency at that time. If RBI rate are not available, 1% of the gross amount provided or received. If money exchange is not having INR, the value shall be 1% of the lesser of the two amount received after conversion into IN

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premium in subsequent year. Provide that this rule will not apply where premium paid by policy holder is towards coverage of risk cover in life insurance. Where taxable supply is provided by person dealing in buying and selling of second hand goods and no ITC has been claimed, value in this case shall be the difference of buying and selling of goods. Where the purchase value of goods repossessed from defaulting borrower, who is not registered, Value of goods shall be reduced by 5% per quarter or part of the quarter from the date of purchase to the date of sale by person taking the repossession. Value of token or voucher or coupon or stamp which redeemable against supply of goods or services or both shall be equal to money value of goods or service redeemed against such token or coupon. Where supply of goods or services as per paragraph 2 of Schedule-I between distinct person or related person and ITC is available, shall be deemed to be nil. Value of supply of service in case of pure ag

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ation of value of goods or service or both shall be the reference rate of RBI on the date of time of supply in terms of Section 12 & 13 of Act. Value of supply inclusive of integrated tax, central tax , State tax and Union territory tax Tax Amount = value inclusive of tax* tax rate 100+ tax rate FAQ ; Is reference to GST Valuation rules requires in all cases. Ans. No. it is required only in those cases where value can not be determined u/s 15[1]. Can the transaction value referred in Section 15[1]be accepted. Ans. Yes. It can be accepted after accepting the inclusion in section 15[2]. Further transaction value can be also accepted where the transaction is between related person and price is not influenced. Whether post supply discount or incentives are to be included in the transaction value. Ans: Yes : discounts is given as per the agreement entered into at or before the supply and linked to relevant invoices. Input tax credit is reversed by the recipient of supply on such discoun

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Customs – 06/2017 – Dated:- 31-5-2017 – OFFICE OF THE COMMISSIONER OF CUSTOMS, PUNE ICE HOUSE, 41/A, SASSOON ROAD, PUNE-411001 F. No. VIII/Cus/TECH/PN/&SI//48-75/2016 Date : 31-May-2017 PUBLIC NOTICE No. 06/2017 Subject:- Declaration of valid PAN Number in Custom Documents (Bills of Entry/Shipping Bills) to avail IGST credit on imports & GST refund on exports. Attention of the Importers/Exporters/Custom House Agents & Trade are invited towards the scheduled implementation of Goods &

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Goods and Services Tax – GST – Dated:- 30-5-2017 – New Delhi, May 30 (PTI) States can look at a higher revenue of ₹ 350-450 billion after GST implementation in mid-2017, says a Standard Chartered report. According to Standard Chartered Bank's report titled India States' Finances: The other half of the story post GST implementation states can look at a total gain of ₹ 350-450 billion, roughly around 0.2-0.3 per cent of GDP. The study that assessed underlying dynamics of various states' finances over a decade said if they can keep their fiscal deficits within the budgeted target, and the Central government adheres to its target of 3.2 per cent of GDP, the combined 2017-18 deficit could be 6 per cent (or lower). The fi

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Goods and Services Tax – GST – By: – Neha Somani – Dated:- 30-5-2017 Last Replied Date:- 31-5-2017 – Introduction: In today's new economy, knowledge and information have become the main production factor. In this context, innovation and technical progress have a major contribution to the durable economic development. The electronic commerce is the key for enterprises competitivity in this informational era, insuring the access to new market segments, increasing the speed of developing business, the increased flexibility of commercial policies, decreasing the provisioning, sale and advertising costs, simplifying the procedures etc. The impact of the electronic commerce upon the companies and upon society will be of great importance both as extent and as intensity. This study aims to establish the ways of making the Internet trade activities more effective and the possibilities by which this kind of activity contributes to the economic development and becomes a growth factor for com

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etter compliances etc. thereby resulting into formation of common national market for goods and services . Present Tax Scenario Presently, e-commerce companies face five indirect taxes including service tax, central sales tax (CST), value-added tax (VAT) and customs duty. At present the centre taxes the sale of services and states tax the sales of goods. Therefore service tax, CST and customs duty have to be paid to the centre while VAT has to be remitted to the state governments. After the implementation of GST, it will become simple. Sellers on e-commerce will have to pay tax in the state where the delivery happens. In the long-run the creation of a unified market place may reduce the tax burden, inventory cost and logistical issues, and ensure seamless movement of goods across the country. Many producers, sellers and consumers will have easy access to an all-India market as there will be development of seamless national supply chain. In case of e-commerce operators, no tax liability

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rators with respect to goods sold or services supplied through their portal which shall significantly increase the compliance burden on the industry. E-Commerce: Section 2(44) of the CGST Act, 2017 defines an Electronic Commerce to mean the supply of goods and/ or services, including digital products over digital or electronic network. Thus, the scope of e-commerce is as follows: Supply of goods and/ or services Such supply or transmissions shall be over digital or an electronic network (primarily internet) E-Commerce Operator: Section 2(45) of the CGST Act , 2017 defines an Electronic Commerce Operator (Operator) as every person who, owns, operates or manages digital or electronic facility or platform for electric commerce. Transactions carried out by an e-commerce operator Following transactions / events take place generally, when a transactions carried out by an e-commerce operators: Various products and services available with e-commerce operator are displayed on his electronic pla

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Section 52 of the CGST Act , 2017 provides that the e-commerce operator not being an agent is required to collect (i.e. deduct) an amount at the rate of one percent from the net value of taxable supplies made through it where the consideration with respect to such supplies of goods and / or services is to be collected by the operator. The amount so deducted/collected is called as Tax Collection at Source (TCS). Net value of taxable supplies shall mean the aggregate value of taxable supplies of goods or services other than the services on which tax shall be paid by the e-commerce operator made during any month by all registered taxable persons through the operator reduced by the aggregate value of taxable supplies returned to the suppliers during the said month. E-commerce operators will have to collect tax at source (TCS) in addition to what GST is payable in the states in respect of supply of their own goods and services. This tax will have to be collected on payment to vendors which

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t account will be reflected in the cash ledger of the actual registered supplier (on whose account such collection has been made) on the basis of the statement filed by the operator. The same can be used at the time of discharge of tax liability in respect of the supplies by the actual supplier. E-Commerce operator required to furnish information to the Government: Section 52(12) of CGST Act , 2017, provides that an officer not below the rank of Deputy Commissioner by serving a notice either before or during the course of proceedings , may require the operator to furnish details relating to: (i) supplies of goods / services effected through the operator during any period; (ii) stock of goods held by actual supplier making supplies through such operator in the godowns or warehouses belonging to the operator and registered as additional place of business by the actual supplier. The operator is required to furnish the above information within 15 working days from the date of service of no

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of its payment. Likely Impact in GST regime: Based on the provisions of CGST Act, 2017, e-commerce companies shall be impacted, both positively and negatively under the GST regime. The e-commerce companies may have to revamp the current models, as the VAT rate arbitrage available in the current law may not be available in GST. Tax Collection at Source (TCS) provisions have been introduced on e-commerce operators in the GST Act. However, there are no provisions relating to collection of tax at source under the current tax regime. The procedure for all the invoices / receipts towards inward and outward supplies will become cumbersome as each one of them will have to be uploaded in the system. The frequency and number of returns to be filed will go up. Mandatory registration to be taken by the e-commerce operators irrespective of the threshold limit Compliances will increase. Will enhance transparency in transactions Overall cost may increase for the ultimate consumer Presently, e-commer

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charge the GST on the bill and the same need to be paid to the Government. But if the goods are being returned back from the customer, whether the assessee can claim the credit of the same or can apply for refund. Certainly, there is no provision enumerated in the Act in this regard. As per section 54 of the CGST Act , 2017, refund can be apply only when there is unutilized credit on account of exports or when there is credit accumulation on account of rate of tax on inputs being higher than the rate of tax on outputs. Taking into fact that around 30% of the products are being returned in online retails, it s going to hit the sector very hard. Books of account As per section 35 of the CGST Act,2017, every registered person shall maintain books of account at his principal place of business and where more than one place of business is specified in the certificate of registration, the accounts relating to each place of business shall be kept at such places of business concerned. Section 2

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tch within a reasonable time, then the supplier would be liable to pay tax along with interest at the rate specified under section 50 on the amount so added from the date such tax was due till the date of its payment. Discounting The Vendors Offer a lot of discounts post invoicing which may not be known at the time of invoice and may be innovative and different from trade norms. As per the CGST Act , 2017, these discounts may not be allowed as deduction from transaction value on which GST would be calculated as section 15 of the CGST Act , 2017 allows only such post-supply discount which is established as per the agreement and is known at or before the time of supply and specifically linked to relevant invoices. Moreover, there is a concept of sizable discount in the e-commerce sector which are offered by the vendors on e-commerce sites by borne by the e-commerce operators. For example, a product worth ₹ 1000 are sold by the vendor at a discounted price of ₹ 800. While the

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Vendor contracts / documentation Review / change of ERP / operational software Accounting changes Impact analysis Supply chain / logistics analysis Staff training Conclusion GST is surely going to be a game changer for e-commerce businesses as there are no provisions relating to collection of tax at source under the current tax regime. In order to mitigate the challenges being posed by e-commerce transactions, the Act endeavors to establish a compliance mechanism to ensure that the appropriate taxes are discharged by the actual suppliers supplying goods or services through electronic portals. – Reply By Anoop Dubey – The Reply = We qualified as GST Suvidha Provider and we aim to deliver pre-and post GST rollout to our stakeholders to make their journey towards GST Registration simple and smooth. We are really very glad to see this great article. Thanks for sharing such a great article Neha.. – Reply By Ganeshan Kalyani – The Reply = What will be your professional fees ? – Reply By Raj

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Goods and Services Tax – GST – By: – CASanjay Kumawat – Dated:- 30-5-2017 Last Replied Date:- 2-7-2017 – Trader s eligibility to claim credits on unsold stock on stock- Transitional Provision – Section 140(3) State Levies Taxpaying document available Q. Whether a person can claim the credit for taxes paid in relation to goods lying in the stock where such person is having taxpaying documents? Ans. As per section 140(3) of SGST Act, 2017, a registered person under GST who was- not liable to be registered under the existing law, or sale of exempted goods or tax-free goods, or goods which have suffered tax at the first point of their sale in the State and the subsequent sales of which are not subject to tax in the State under the existing law but which are liable to tax under this Act, or where the person was entitled to the credit of input tax at the time of sale of goods can claim the credit of VAT paid in relation to goods lying in stock or semi-finished goods or finished goods held i

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registered person is eligible for input tax credit on such inputs under this Act, the said registered person is in possession of invoice and/or other prescribed documents evidencing payment of duty under the existing law in respect of such inputs, and such invoices and /or other prescribed documents were issued not earlier than twelve months immediately preceding the appointed day. Notional Credit @40% Taxpaying document not available Q. Whether a person can claim the credit for taxes paid in relation to goods lying in the stock where such person is not having taxpaying documents? Ans. As per proviso to section 140(3) of SGST Act, 2017 read with Rule 1 (3) of the Transition Rules, 2017, a registered person under GST can claim credit in relation to goods which have suffered tax at the first point of their sale in the State and the subsequent sales of which are not subject to tax in the State under the existing law but which are liable to tax under this and such goods are lying in stock

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not having taxpaying documents (like tax invoice, bill of entry etc.) then a person can claim the credit equivalent to the 40% of SGST paid on the supply of such unsold stock. For example, a person is having the stock worth of ₹ 50,000/- as on appointed date. Such person has supplied goods for ₹ 60,000/- and on which he has paid SGST @28% i.e., ₹ 16,800/-(Rs. 60,000@28%). Now, in accordance with the provisions of Transition Rules, he can claim credit to the extent of 40% of SGST paid, i.e., ₹ 6,720/- (Rs. 16,800@40%). Q. Is there any time period to avail this scheme? Ans. Yes, to claim benefit under this scheme, a person has to claim credit within 6 tax periods. Q. What are the conditions to avail credit of tax/duty paid in relation to unsold stocks as on appointed date? Ans. Following are the conditions: Such goods were not wholly exempt from tax under the Value Added Tax Act,….. Document for procurement of such goods is a

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be available as credit. – Reply By CASanjay Kumawat – The Reply = For the credit of excise duty – 40 percent of CGST [Legal reference : proviso to section 140(3) of the CGST Act, 2017 read with Rule 1(3) of the Transitional Rules, 2017 (For CGST only)] For the credit of VAT -40 percent of of SGST [Legal reference : proviso to section 140(3) of the SGST Act, 2017 read with Rule 1(3) of the Transitional Rules, 2017 (For SGST Only) ] In the present case, I have discussed about credit in relation to VAT , accordingly , 40 percent of SGST payable shall be allowed​ as credit. – Reply By Krishna Murthy – The Reply = Purchases made from outside the state (CST purchases) and tax paid to the seller and issued 'C' form to the seller. Such purchase is lying as stock as on appointed date. Can ITC of such CST tax (2% against 'C' form ) be claimed for carried forward under GST. – Reply By ankit shah – The Reply = There are stock with us which we had purchases from a manufacturer

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Goods and Services Tax – GST – By: – JUGAL DOSHI – Dated:- 30-5-2017 – Background – Point of taxation means the point in time when goods have been deemed to be supplied or services have been deemed to be provided. The point of taxation enables us to determine the rate of tax, value, and due dates for payment of taxes.Under GST the point of taxation, i.e., the liability to pay CGST / SGST, will arise at the time of supply as determined for goods and services. Sr. No. Particulars Goods Services 1 Normal mechanism if invoice issued in time(See Note 1) Earlier of two: Date of invoice or Date of receipt of payment Earlier of two: Date of invoice or Date of receipt of payment Normal mechanism if invoice not issued in time Earlier of two: Last date for issue of invoiceor Date of receipt of payment Earlier of two: Date of provision of service or Date of payment Others Date as per books 2 Reverse charge mechanism Earlier of following:- Date of receipt of goods or Date of payment or Date immedi

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or late fees) Date of supply to the extent of addition should be date on which supplier receives such addition. Date of supply to the extent of addition should be date on which supplier receives such addition Notes In case the supplier receives amount up to INR 1000 in excess of invoice amount, then he can opt the date of Invoice in respect of such excess Supply shall bedeemed to have been made to the extent it is covered by the invoice or, as the case may be, the payment. Date of receipt of payment will be earlier of two:- Date on which entry entered in books of accounts or Date on which payment credited to bank account voucher means an instrument where there is an obligation to accept it as consideration or part consideration for a supply of goods or services or both and where the goods or services or both to be supplied or the identities of their potential suppliers are either indicated on the instrument itself or in related documentation, including the terms and conditions of use

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ices Banking company or Financial/Non-financial institutions Before or within 45 days from date of supply of service Other cases Before or within 30 days from date of supply of service Supply between distinct persons in case of insurance or banking company or financial institution including NBFC or telecom operator or class of supplier as notified by government When such supplier records the same in his books of account or before the expiry of the quarter during which the supply was made. 4 In case of continuous supply of services Due date of payment is ascertainable On or before the due date of payment Due date of payment is not ascertainable On or before such time when the supplier of service receives the payment Payment is linked to the completion of an event Onor before completion of that event 5 Other In a case where the supply of services ceases under a contract before the completion of the supply At the time when the supply ceases Where the goods being sent or taken on approval

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Goods and Services Tax – Started By: – MohanLal tiwari – Dated:- 29-5-2017 Last Replied Date:- 2-6-2017 – GST is payable on advances received from customers, what is provision for GST where part payment (5% or 10%) is payable after three / six months of receipt & acceptance of goods and balance 10% or 20% payment after successful installation & commissioning or performance of equipment. – Reply By Rajagopalan Ranganathan – The Reply = Sir, According to Section 31 (5) of CGST Act, 2017- Subject to the provisions of clause (d) of sub-section (3), in case of continuous supply of services,- (a) where the due date of payment is ascertainable from the contract, the invoice shall be issued on or before the due date of payment; (b) where t

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he Reply = Mr Rajgopalan Sir, Your reply to above query is for services Subject to the provisions of clause (d) of sub-section (3), in case of continuous supply of services, whereas in our case, we are supplying goods (machinery parts) and payment terms is say – 10% advance against ABG after order acceptance, 70% against receipt of mtls by consignee, 10% against PBG after 6 months of receipt of goods, balance & final 10% against PBG after successful installation and trial of equipment. In the sub-section 4 & 5 of the Rule also not applies correctly as it is not continuous supply. – Reply By Rajagopalan Ranganathan – The Reply = Sir, As per proviso to Section 31 (1) of CGST Act, 2017 the Government may, on the recommendations of the

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Goods and Services Tax – GST – Dated:- 29-5-2017 – The Union Finance Minister, Shri Arun Jaitley: Goods and Services Tax (GST) is an efficient tax system which not only checks tax evasion but also helps evolving India to become very strong society FM inaugurates the National Academy of Customs, Indirect Taxes and Narcotics (NACIN) Campus in Bengaluru today Inaugurating the National Academy of Customs, Indirect Taxes and Narcotics (NACIN) Campus in the Bengaluru today, the Union Finance Minister Shri Arun Jaitley said that Indirect Taxation regime in the country will play a key role and is undergoing a vital change. He said that the present multiple taxation system is transformed into the Goods and Services Tax (GST) and all the taxes are a

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Goods and Services Tax – Started By: – SUSHIL GOYAL – Dated:- 29-5-2017 Last Replied Date:- 6-6-2017 – What is HSN Code. In FAQ issued by cbec on 31/03/2017 it is said that a person whose turnover is upto ₹ 1.50 crore need not mention any HSN Code. A supplier having turnover between 1.50 Crore and 5 Crore will mention 2 digit HSN Code and with turnover more than 5 Crore 4 digit HSN Code will be mentioned. My query is that in the HSN Code list we find two digit code as Chapter and 6 digit or 8 digit codes for products. Pl clarify. – Reply By MARIAPPAN GOVINDARAJAN – The Reply = FAQ may be revised. – Reply By Himansu Sha – The Reply = HSN means Harmonised systems of Nomenclature. It also exists now describing the taxliability on variou

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Goods and Services Tax – Started By: – himanshu mittal – Dated:- 29-5-2017 Last Replied Date:- 5-6-2017 – hello sir/madammy query is that is TIN no is required under GST for small scale business man or not – Reply By MARIAPPAN GOVINDARAJAN – The Reply = Not at all required. They have to take registration if their transaction threshold limit crosses ₹ 20 lakhs. – Reply By Himansu Sha – The Reply = When all the taxes are subsumed , TIN is not required – Reply By Ganeshan Kalyani – The Reply

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Goods and Services Tax – GST – Dated:- 29-5-2017 – The Department of Revenue, Ministry of Finance, Government of India has opened a new Twitter Handle @askGST_GoI to invite queries from all taxpayers

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Goods and Services Tax – GST – By: – Sanjeev Singhal – Dated:- 29-5-2017 – This chapter will focus on time of supply of goods and services which includes goods and services. Time of supply is very significant part of any business vis a vis taxation .Time is important for point of taxation that when the liability to pay tax will arise on goods and services . Let us address the issue one by one. Time of Supply of Goods [ Sec.12 ] 1. The liability to pay tax shall arise only at the time of supply of goods. Earliest of the following shall be the time of supply Date of issue of invoice or the last date of issue of invoice u/s 31[1] At the time of receipt of payment. If the payment received by the supplier is up to ₹ 1000 in excess of amount written in invoice, time of supply for such excess shall be at the option of supplier, may be the date of issue of invoice. 2. Time of supply in case of reverse charges shall be earliest of the following; Date of received of goods Date on which pa

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redit in bank a/c Time of supply Invoice raised before removal 10-11-2017 20-11-2017 28.11.2017 30.11.2017 10.11.2017 Advances received 15.11.2017 20.11.2017 10.11.2017 13.11.2017 10.11.2017 In case of movement of goods Invoice date Removal of goods Delivery of goods Receipt of Payment Time of supply Delayed issue of invoice 26.11.2017 20.11.2017 26.11.2017 26.11.2017 20.11.2017 Advance received 30.11.2017 10.12.2017 14.12.2017 20.11.2017 20.11.2017 Supply otherwise than movement of goods Invoice date Receipt of invoice by recipient Delivery of goods Receipt of payment Time of supply Delay issue of invoice 30.11.2017 05.12.2017 26.11.2017 10.12.2017 26.11.2017 Invoice issued before prior to delivery 20.11.2017 30.11.2017 26.11.2017 10.12.2017 20.11.2017 Reverse charge Invoice date Removal of goods Receipt of goods Payment by recipient Time of supply General 30.11.2017 30.11.2017 10.12.2017 30.12.2017 10.12.2017 Advance payment 30.11.2017 30.11.2017 20.12.2017 5.12.2017 5.12.2017 No pay

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entered in the books of recipient or the date when payment is debited in his bank account which ever is earlier 60 days from the date issue of invoice or any other document by supplier Where above provision shall not apply, the time of supply shall be the date of entry in the books of account of recipient. 3. In case of supply of vouchers Date of supply of voucher, if it can be identify Date of redemption of voucher in all other cases 4. In case it is not possible to establish the time of supply as discussed above in [2&3] then In case of periodical return to be filed ,date on which periodical return has to be filed In all other cases , date on which SGST / CGST is to be paid Example General Invoice date Invoice due date Payment in supplier books Credit in bank a/c Time of supply Invoice raised before completion of services 10-11-2017 20-11-2017 28.11.2017 30.11.2017 10.11.2017 Advances received 30.11.2017 20.11.2017 10.11.2017 30.11.2017 10.11.2017 Based on due date of invoice Inv

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ice is raised before the change of rate of tax and payment is received after the change of rate of tax, date of invoice shall be time of supply. Where payment is received before change of rate of tax and invoice is issued after the change of rate of tax, time of supply shall be date of receipt of payment 2. In the case of goods or services have been supplied after the change of effective rate of tax Where the payment is received after the change of rate of tax and invoice is raised before change of rate of tax, time of supply of services shall be date of date of receipt of payment. Where the invoice is raised after the change of rate of tax and payment is received before the change of rate of tax , time of supply shall be date of date of invoice. Where the invoice is raised and payment is received before the change of rate of tax , time of supply shall be earlier of the invoice or receipt of payment date. – Disclaimer : The contents of this article are solely for information and knowle

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Goods and Services Tax – GST – By: – Dr. Sanjiv Agarwal – Dated:- 29-5-2017 Last Replied Date:- 30-5-2017 – This part of the series contains meanings of certain terms covered in Section 2 of the CGST Act, 2017. These are Goods, Government, GST Practitioner, India, Input, Input Service , Input Service Distributor, Input Tax and Input Tax Credit. Goods [Section 2(52)] 'Goods' means every kind of movable property other than money and securities but includes actionable claim, growing crops, grass and things attached to or forming part of the land which are agreed to be severed before supply or under a contract of supply. A very wide definition of goods covering all movable properties with the exception of money and securities have been provided in GST law. Immovable properties are not included in 'goods'. For the first time in indirect taxation, actionable claims have been considered as goods but in case these actionable claims are claims on money or securities, they will

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elation to anything done or to be done after the commencement of the Constitution, means the President; and shall include- in relation to functions entrusted under clause (1) of article 258 of the Constitution, to the Government of a State, the State Government acting within the scope of the authority given to it under that clause; in relation to the administration of a Part C State, the Chief Commissioner or the Lieutenant-Governor or the Government of a neighboring State or other authority acting within the scope of the authority given to him or it under article 239 or article 243 of the Constitution, as the case may be; and in relation to the administration of a Union Territory, the administrator thereof acting within the scope of the authority given to him under article 239 of the Constitution; GST Practitioner [Section 2(55)] 'Goods and services tax practitioner' means any person who has been approved under section 48 to act as such practitioner. GST practitioner means a p

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al Shelf, Exclusive Economic Zone and other Maritime Zones Act, 1976; the seabed and the subsoil underlying the territorial waters; the air space above its territory and territorial waters; and the installations, structures and vessels located in the continental shelf of India and the exclusive economic zone of India, for the purposes of prospecting or extraction or production of mineral oil and natural gas and supply thereof. It is important to note that the definition of term India does not specifically include installation, structure and vessels located in continental shelf and exclusive economic zone for the purpose of extracting/ prospecting/ production of mineral oil and natural gas and supply thereof. Input [Section 2(59)] 'Input' means any goods other than capital goods used or intended to be used by a supplier in the course or furtherance of business. Goods, as defined in section 2(52), which are used or intended to be used in the course or furtherance of business coul

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urse of or furtherance of business. Input Service Distributor [Section 2(61)] 'Input Service Distributor' means an office of the supplier of goods or services or both which receives tax invoices issued under Section 31 towards the receipt of input services and issues a prescribed document for the purposes of distributing the credit of central tax, State tax, integrated tax or Union territory tax paid on the said services to a supplier of taxable goods or services or both having the same Permanent Account Number as that of the said office. The term Input Service distributor has been defined in section 2(61) of GST law to mean: An office of the supplier of goods and / or services, Which receives tax invoices issued under Section 31, Towards receipt of input services , Who issues tax invoices or such other documents for distributing the credit of CGST, SGST, IGST paid on such services, To supplier of taxable goods and services having same PAN as that of such office. For the purpos

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for distributing the credit of ITC so accumulated to various other units proportionately. Under the provisions of Section 24 of CGST law, every ISD is required to be registered under the Act. Input Tax [Section 2(62)] 'Input tax' in relation to a registered person, means the central tax, State tax, integrated tax or Union territory tax charged on any supply of goods or services or both made to him and includes- the integrated goods and services tax charged on import of goods; the tax payable under the provisions of sub-sections (3) and (4) of section 9; the tax payable under the provisions of sub-section (3) and (4) of section 5 of the Integrated Goods and Services Tax Act; the tax payable under the provisions of sub-section (3) and sub-section (4) of section 9 of the respective State Goods and Services Tax Act; or the tax payable under the provisions of sub-section (3) and sub-section (4) of section 7 of the Union Territory Goods and Services Tax Act, but does not include the

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Maharashtra Goods and Services Tax related laws (Amendments, Validation and Savings) Act, 2017. – GST – States – Mah. Act No XLII of 2017 – Dated:- 29-5-2017 – Maharashtra Goods and Services Tax relat

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Goods and Services Tax – Started By: – MohanLal tiwari – Dated:- 27-5-2017 Last Replied Date:- 30-5-2017 – I have three manufacturing units in one state accordingly taken single GST registration for all three units.I have accumulated CENVAT credit in one unit (being mainly export supplies) whereas paying duty regularly in remaining two units. After 1st July'17, the cenvat credit of all three units will be merged in single ledger. My question is1. whether, I will be able to use the credit balance of merged cenvat for supply from any unit?2. Will it be advisable to have separate Sr No for invoices of all three units with some different alphabet prefix? – Reply By MARIAPPAN GOVINDARAJAN – The Reply = You can use the credit balance provide

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Goods and Services Tax – GST – By: – Dr. Sanjiv Agarwal – Dated:- 27-5-2017 Last Replied Date:- 24-8-2017 – Liability under existing Taxation Regime Where process amount to manufacture: If the process undertaken by the job worker amounts to manufacture/ deemed manufacture as per the definition, the job worker would be liable to pay a duty of excise on the goods so manufactured. Alternatively, the principal manufacturer who has supplied the goods for job work may furnish a declaration under Notification No. 214/86 dated 25.03.1986 (which exempts goods manufactured by a job worker from the duty of excise) based on which job worker would not be required to charge duty of excise. The goods must be used in the manufacturing process by the principal manufacturer which should result in a dutiable product being manufactured on which duty of excise is being charged. The activity undertaken by job worker would not be liable to service tax also as any process amounting to manufacture or producti

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uld be liable to charge service tax. Valuation The value of supply of goods or services in a case where the consideration is wholly in money, transaction value shall be considered for payment of tax, with various inclusions prescribed in the valuation provisions. Certain inclusions in the valuation are as follows: (i) Any taxes, duties, cesses, fees and charges levied under any statute, other than SGST/UTGST/CGST/IGST. (ii) Any amount that the supplier is liable to pay in relation to such supply but which has been incurred by the recipient of the supply and not included in the price actually paid or payable for the services. (iii) Incidental expenses. (iv) Interest or late fee or penalty for late payment of any consideration of supply. (v) Subsidies directly linked to the price excluding subsidies provided by the Central and State Governments. However, transaction value will exclude discount, if any. Post-supply discounts will not be included in the transaction value if it is establish

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pply of goods or services where the consideration is not wholly in money, value of supply shall- be the open market value of such supply, if the open market value is not available, be the sum total of consideration in money and any such further amount in money as is equivalent to the consideration not in money if such amount is known at the time of supply, if the value of supply is not determinable under clause (a) or clause (b), be the value of supply of goods or services or both of like kind and quality; if the value is not determinable under clause (a) or clause (b) or clause (c), be the sum total of consideration in money and such further amount of money that is equivalent to consideration not in money. The value of the supply of goods or services or both between distinct persons or where the supplier and recipient are related, other than where the supply is made through an agent, shall,- be the open market value of such supply, if the open market value is not available, be the val

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t will be allowed to the registered person subject to satisfaction of following conditions- he is in possession of a tax invoice or debit note issued by a supplier registered under this Act, or such other tax-paying documents as may be prescribed. he has received the goods or services or both. However, in the case of job work, the principal shall be entitled to take credit of input tax on inputs or capital goods even if the inputs or capital goods are directly sent to a job worker for job-work without being first brought to his place of business. the tax charged in respect of such supply has been actually paid to the Government, either in cash or through utilization of input tax credit admissible in respect of the said supply, and he has furnished the return under section 39, i.e., combined return of outward and inward supplies which is to be filed on 20th of following month. Accordingly, the principal shall be allowed input tax credit on inputs or capital goods sent to a job-worker fo

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n issued by the principal to the job worker shall contain the details specified in rule Invoice 8, as under- date and number of the delivery challan, name, address, and GSTIN of the consigner, if registered, name, address, and GSTIN or UIN of the consignee, if registered, HSN code and description of goods, quantity (provisional, where the exact quantity being supplied is not known), taxable value, tax rate and tax amount – CGST, SGST/UTGST, IGST or cess, where the transportation is for supply to the consignee, place of supply, in the case of inter-State movement, and signature. The details of challans in respect of goods dispatched to a job worker or received from a job worker during a tax period shall be included in FORM GSTR-1 furnished for that period. If the inputs or capital goods are not returned to the principal within the time stipulated in section 143 i.e., one or three year(s), the challan issued under sub-rule (1) [i.e., point (a)] shall be deemed to be an invoice for the pu

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on the recipient, i.e., job worker, as against their vendors. Similar provisions have been prescribed wherein details of credit notes issued by a supplier have to match with the corresponding reduction of input tax credit claimed by the recipient. Accordingly, if the recipient does not adjust the input tax credit, the tax and interest would be recovered from the supplier. This provision places liability on tax-payers for non-compliance by vendors. Input Service Distributor (ISD) Concept As in the present Cenvat Credit Rules, ISD concept is proposed for transfer of credit of input services between two or more locations. ISD can transfer credit of all types of GST (CSGT, SGST/UTGST or IGST). Considering the possibility of multiple registrations State-wise, ISD could be used as a tool to ensure optimal utilization of head office-related input tax credits (of input services), resulting in an effective reduction in cost. Transitional Credits To transfer and carry forward the existing credit

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nment of stock as on appointed day. However, if the credit of VAT is being currently availed, the same should be properly reflected in the last VAT/Service Tax returns to transfer such credits to the GST regime. The principal might have sent inputs, semi-finished goods and finish goods outside before appointed date (as of now it is 1st of July, 2017) for job work or testing. If these are received back before 6 months (i.e., 31st December 2017), GST will not be payable. Specific Issues Treatment of Scrap / Waste The waste and scrap generated during the job work can be supplied by the job worker directly from his place of business, on payment of tax, if he is registered. If he is not registered, the same would be supplied by the principal on payment of tax. Intermediate Goods The term inputs, for the purpose of job work, includes intermediate goods arising from any treatment or process carried out on the inputs by the principal or job worker. Records for Job works It is completely the re

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tures and timings of completion of work (ii) Valuation of processed goods (iii) Respective obligations (iv) FOC supplies (v) Reverse charge mechanism (vi) Tax implications Supplementary agreements/new contracts may be entered into for job work activities. To decide on having or not having two separate contracts for the supply of goods and services. To decide on having multiple supply locations/closing some of them. Review of procurement policy. Change in invoicing pattern. Working capital management. Treatment of security deposits other deductions. Accounting aspects. Training of personnel. Concluded The job worker should be aware of the provisions under goods and services tax as applicable to them so that they will not face any kind of problem in future from Department/principal manufacturer. Job workers may be required to restructure their contracts/agreements in view of the GST provisions as applicable to them. – Reply By Pankaj Gupta – The Reply = Dear Sir, you have explained extre

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Reply By V Inamdar – The Reply = Dear Sir, Although you have suggested that principal need not to follow special job work procedure, instead he should sed inputs on payment of GST to job worker and in-turn after processing of goods job worker will return the goods on payment of GST. Though logically the above suggestion / clarification made by Government in FAQ – answer to Q-15 of Chapter 9, is correct, but it is not backed by provisions of GST. For example, the above is not fitting into the definition of term supply read with Sch.1 and 2 of CGST. Can you please through light on this? V.Inamdar Mobile 9769005102 – Reply By HARSH DABRIWAL – The Reply = Dear SirI am doing job work of embroidery for my clients which is taxable under GST @ 5% under sac code-9988.In my working of job work the input goods (Textile Fabric) are supplied by the principal to do embroidery work on it and only a challan is issued by the principal without any value of goods. But as a job worker I too have to purcha

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Goods and Services Tax – GST – Dated:- 26-5-2017 – Telecommunication services presently attract Service Tax of 14% along with Swachh Bharat Cess (SBC) of 0.5% and Krishi Kalyan Cess (KKC) of 0.5%. While Service Tax is a pure value added tax, the above mentioned cesses are not. This is the reason that while no ITC (Input Tax Credit) of SBC is available, the ITC of KKC is allowed to be set-off only against KKC. Therefore, both the cesses are turn-over tax. As against the above, the Telecommunication Services will attract GST of 18% in the GST regime, which is a pure Value Added Tax because full ITC of Inputs and Input Services used in the course or furtherance of business by the telecommunication service providers would be available. Moreove

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Goods and Services Tax – ADDENDUM TO THE GST RATE SCHEDULE FOR GOODS [As per discussions in the GST Council Meeting held on 18th May, 2017] – TMI Updates – Highlights

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Goods and Services Tax – GST – Dated:- 26-5-2017 – ADDENDUM TO THE GST RATE SCHEDULE FOR GOODS [As per discussions in the GST Council Meeting held on 18th May, 2017] 1. The following amendments / additions are required to be made to the aforesaid document: 1. In S.No.22,- (i) In the Nil rate column, the entry Tender coconut water put in unit container and bearing a registered brand name [2202 90 90] , may be read as: Tender coconut water other than put in unit container and bearing a registered

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Goods and Services Tax – Started By: – Swapneswar muduli – Dated:- 26-5-2017 Last Replied Date:- 30-5-2017 – Dear Experts.Thresh hold limit for Registration is 20 lacs if the person don't do any interstate transaction. and take composition levy in his turnover below 50 lacs.My question is if the same person with same PAN no take registration in two difference state and doing business on that state only in that case he may avail the thresh hold limit if separate states individual turn over is below 20lac. but his both states turn over may go up if he combine the both business turn over.what happen in this same case for composition levy.RegardsSwapneswar. – Reply By Himansu Sha – The Reply = No benefit under sec 10 – Reply By MUKUND THAK

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