Goods and Services Tax

Goods and Services Tax – Started By: – sachin shilamkar – Dated:- 17-5-2017 Last Replied Date:- 27-5-2017 – What are the provisions under GST for transfer of ACD and CVD paid by the importer/dealer on the closing stock which will transfer to GST on 1st July when GST will get implemented. What records need to be maintained and how to apply for the same.RegardsSachin – Reply By Rajagopalan Ranganathan – The Reply = Sir, According to Explanation 1 & 2 appended to Section 140 of CGST Act, 2017 eligible duties means- the additional duty leviable under sub-section (1) of section 3 of the Customs Tariff Act (CVD), 1975 (51 of 1975.); (iii) the additional duty leviable under sub-section (5) of section 3 of the Customs Tariff Act, 1975 (SAD) (5

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Goods and Services Tax – Started By: – Ramakrishnan Seshadri – Dated:- 17-5-2017 Last Replied Date:- 18-5-2017 – Dear Sir,We are paying service tax for manpower and transport under rcm. Our question is whether the service provider has to get registered themselves with the GST .Please clarify.Thanks & Regards,S.Ramakrishnan – Reply By Rajagopalan Ranganathan – The Reply = Sir,Yes you have to get registered under GST Acts. But whether you have to pay GST under reverse charge or othwerwise wil

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COMPLIANCE ON CANCELLATION OF REGISTRATION UNDER REVISED GST LAW:- Goods and Services Tax – GST – By: – Pradeep Jain – Dated:- 17-5-2017 – At present, the manufacturers/dealers registered under the Central Excise Act, 1944 have the option to surrender their registration if they intend to close their operations but there is no liability or legal compliance to be discharged on cancellation of the registration. However, the situation is not same in the proposed GST regime as the assessee is required to discharge tax and is also required to file final return under section 40 of the Revised GST Law. According to section 26(7) of the Revised GST Law, every registered taxable person whose registration is cancelled shall pay an amount equivalent to

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ssed above is required to be made for inputs as such, inputs contained in semi-finished goods, inputs contained in finished goods, capital goods and even input services. The assessee can compute the value of inputs contained in the stock of goods as on the date of cancellation but it is extremely difficult to compute the input tax credit of input services contained in the stock of goods. Moreover, there might be dispute as regards whether reversal of credit of input services directly related to the stock of goods is required like transportation services for bringing inputs in the premises or whether input service credit indirectly pertaining to the stock of goods such as telephone services, security services etc. is also required to be reve

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, it is found that Schedule-I of the Old GST Law prescribed matters to be treated as supply without consideration which also mentioned the assets retained after deregistration which meant that assets on which no credit was taken were also treated as supply on deregistration. Not only this, permanent transfer or disposal of business assets was also considered as supply without consideration so as to levy tax irrespective of fact whether input tax credit was availed on such assets or not. However, this provision has been dispensed with in the revised GST law and now, only permanent transfer or disposal of business assets where input tax credit has been availed has been mentioned in Schedule-I thereby meaning that tax would be leviable by trea

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Goods and Services Tax – GST – By: – Sanjeev Singhal – Dated:- 17-5-2017 Last Replied Date:- 17-5-2017 – Input tax credit on input, input services and capital goods is the most contentious issue where always are lot of litigation on admissibility . This is common problem in case of lack of clarity of the provisions and rules under the existing indirect tax as well like Excise , Service Tax and VAT. With the subsuming of one tax , in GST we are hopeful that the present problem will mitigate to certain extent . Before going into detail I will like to explain on the relevant definitions of ITC which make the chapter less cumbersome and will facilitate to understand in better way. Definitions and provisions provided in GST on ITC in comparison to existing laws are more simpler and understandable. Now, We can go through all definitions related to Input tax Credit under CGST Act, 2017 in detail. Definition of Capital Goods , Input , Input Services and Input tax credit Capital Goods -Sec. 2(

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ctive State goods and service tax Act; or Tax payable under the provision of sub section (3) & (4) of Section 7 of the Union territory goods and service tax Act. But does not include tax paid under the composition levy. Sec. 2( 63) Input Tax Credit mean credit of input tax . Now, we will discuss the Input tax Credit provision one by one along with Rules of Input Tax Credit . How to take input tax credit- conditions – Sec. 16 All RP [ Registered Person ] shall take credit of input tax admissible as per the terms and condition specified in Sec. 49 on all goods and supply or both and the said amount shall be credited to his ECL [ electronic credit ledger]. Registered person can claim credit only when possessing; Invoice or debit note Received the goods or services Tax charged on such supply has been paid to Government either in cash or through credit utilisation Person has filed the return u/s 39 Where the goods are received in installment or lots, ITC shall be available at the time r

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ing of the annual return which ever is earlier . Apportionment of credit or blocked credit [Sec. 17] A] where the goods and services are used partly for business or partly for personal purpose by RP , the amount of credit shall be limited to ITC pertain to used for business. B] where the goods or services are used by RP partly for taxable supplies including zero rating supply under this Act or IGST Act and partly for exempted supply , the amount of credit shall be limited to ITC pertain to used for taxable supply. [ Furnish in GSTR-2 the ITC on exempt supplies which shall not be credited to ECL] C] Exempted supply under Point-B as explained in Sec. 2(47) and shall include supplies on which recipient is liable to pay tax under reverse charge basis, transaction in securities, sale of land, subject to clause b of paragraph 5 of schedule-II, sale of building. Exempt Supply[ sec. 2(47) exempt supply means supply of any goods or services or both which attracts nil rate of tax or which may be

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namely Food and beverage, outdoor catering , beauty treatment, health services, cosmetic and plastic surgery, except when such inward supply of goods and services is used for output taxable supply of the same category of goods and services. Membership of club, health and fitness services Rent a cab, life insurance, health insurance Travel benefit extended to employee on vocation such as leave or home travel concession. F] work contract service or both when supplied for construction of immovable property other than plant and machinery except when such input services used for further supply of work contract service. G] goods or services used by RP for construction of immovable property ( other than plant and machinery) on his own a/c, even when used in course or furtherance of business. For the purpose of clause F and G , the construction includes reconstruction, renovation, alteration, addition, repair to extent of capitalization to the said immovable property. H] goods and services on

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registration under sec. 25 [3] , will be entitle to claim ITC on input, semi finished and finished goods on immediately proceeding the date of grant of registration. Where the RP ceases to pay tax under Sec.10 , will be entitle to claim ITC on input, semi finished and finished goods and capital goods on immediately proceeding the day on which he is liable to pay tax. The credit on capital goods shall be reduced by percentage point as prescribed. Where an exempt supply of goods and services by RP becomes taxable, will be entitle to claim ITC on input, semi finished and finished goods and capital goods on immediately proceeding the day on which he is liable to pay tax. Provided that credit on capital goods shall be reduced by percentage point. RP can not claim input tax credit under the above said sub sections after the expiry of one year from the date of invoice. Where there is change in the constitution of RP on account of sale, merger, demerger, amalgamation , lease or transfer of the

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ountant/ cost accountants if the ITC is exceeding ₹ 2 lacs. Input tax credit in respect of input and capital goods sent for job Work [ Sec.19 ] Principal as referred in Sec. 143 , shall take the credit of input sent for job work provided the input after job work has been received back within one year from the date of sent out. ITC can be claimed even if the goods directly sent to job worker. One year shall be computed from the date of receipt of material by Job worker. If the goods have not been returned within the stipulated period, the same shall be treated as supply to job worker from the date of goods sent out.[ Rule -10 the input or capital goods shall be sent on challan as per the information contained in Rule -8 of Invoice Rules. The detail of challan shall be furnish in GSTR-1 for the period. Principal shall be entitled to take credit of ITC on capital goods sent to job worker. Credit shall be valid if such goods have been received back within three years of being sent ou

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ient eligible. shall be distributed to attributable recipient . If more than one recipient , it shall be on pro rata basis on the turnover of the state or Union territory of the relevant period. Recipient should be operational in that relevant period. Relevant period ; a] the recipients of credit have turnover in the state or union territory in the financial year proceeding the year in which credit to be distributed. b] if some or all of the recipients of credit have not any turnover in the state or union territory in the financial year proceeding the year in which credit to be distributed. Last quarter preceding the month in which credit to be distributed shall be the period. Rule : ITC available for distribution shall be furnished in GSTR-6 Manner of recovery of credit Distributed in excess [ Sec-21] Where the ISD distribute any credit resulting in excess distribution, the same shall be recovered from such recipient along with interest, and the provision of sec. 73 or 74 [ demand and

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rger, amalgamation etc. A. Yes , it is available as per Sec. 18[3] in the manner as prescribed. Q. A dealer paying tax under compounding scheme and crosses the threshold limit, can he get ITC and from which date. A. As per Sec. 18[1][c] , he can avail the credit on input and input contained in semi finished goods and finished goods on the date immediately proceeding the date from which he becomes liable to pay tax. Q. Weather the principal is eligible to take input on input sent to job worker? A. Yes. As prescribed in sec. 19[2]. Disclaimer : The contents of this article are solely for information and knowledge and does not constitute any professional advice or recommendation. Author does not accept any liability for any loss or damage of any kind arising out of this information set out in the article and any action taken based thereon. About the Author: Author is practicing chartered accountant in Gurgaon and having specialisation in Service Tax and Haryana VAT. He can be reached at s

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Goods and Services Tax – GST – By: – Amit Sharma – Dated:- 17-5-2017 – The following supply of goods even made within state, shall not be treated as Intra-State supply:- 1. Import of goods. 2. Export of goods. 3. Supply of goods to SEZ units. 4. Supply of goods by SEZ units. 5. Supply of goods by SEZ developers. 6. Supply of goods to SEZ developers. 7. Supplies made to tourist leaving India being a person not normally resident in India, who enters India for a stay of not more than six months fo

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Goods and Services Tax – Started By: – MB N – Dated:- 16-5-2017 Last Replied Date:- 16-5-2017 – If Goods against an Invoice are received in lots or instalments ITC can be availed only upon receipt of last lot or instalments. What happens if the movement is not completed before the due date of furnishing the September Return or Annual Return. – Reply By KASTURI SETHI – The Reply = Credit should be taken only on physically receipt of goods i.e. installments. If movement is not complete by Septemb

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Goods and Services Tax – GST – Dated:- 16-5-2017 – Lucknow, May 16 (PTI) Uttar Pradesh Assembly today unanimously passed the UP Goods and Services Tax (GST) Bill, 2017. The bill had been tabled in the Vidhan Sabha yesterday and was passed by a voice vote today. Initiating the discussion on the bill, Chief Minister Yogi Adityanath termed it a revolutionary move which was in the interest of consumers as well as traders. The GST bill is the result of the Modi Government's push towards wider ec

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Goods and Services Tax – Started By: – Jasbir Uppal – Dated:- 16-5-2017 Last Replied Date:- 5-5-2018 – Dear professionalsGST has subsumed all the indirect taxes including service tax, excise and VAT. Only the basic customs duty remains out of its gamut. This sweeping change essentially disturbs the current drawback mechanism.What is the mechanism to adopted by the Government In GST to refund the basic customs duty to exporters in place of duty draw back, because the export is zero rated in GST.

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Goods and Services Tax – GST – Dated:- 16-5-2017 – Lucknow, May 15 (PTI) The State GST Bill was tabled in the opening session of the 17th Uttar Pradesh assembly today with Chief Minister Yogi Adityanath describing the new tax regime as a welfare measure . The chief minister tabled the Goods and Services Tax (GST) Bill in the House when it reassembled after Governor Ram Naik's address to the joint sitting of the state legislature. This is the first assembly session after the BJP government led by Yogi Adityanath came to power last month after a landslide victory in the state assembly elections. GST is an important step not only for traders, but also for economic reforms in the country. 'One Nation, One Tax' is in the interest of

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alient features of the proposed legislation on GST. On May 2, the UP cabinet had approved a draft bill for implementation of the GST in the state. After the bill is passed by the state assembly, where the BJP has a three-fourth majority, Uttar Pradesh will join the likes of Uttarakhand, Jharkhand, Telangana, Bihar and Rajasthan whose legislatures have given their nod to the indirect tax regime. The state government is confident that its tax revenue would increase under GST, which is touted as the most liberal tax structure to be adopted in the country. Four key GST legislations – the Central GST Act, the Integrated GST Act, the GST (Compensation to States) Act and the Union Territory GST Act – were passed by the Parliament in its last sessi

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PLACE OF SUPPLY OF GOODS OR SERVICES PART-III:- Goods and Services Tax – GST – By: – Pradeep Jain – Dated:- 16-5-2017 – SECTION 10: PLACE OF SUPPLY OF SERVICES WHERE THE LOCATION OF THE SUPPLIER OR THE LOCATION OF THE RECIPIENT IS OUTSIDE INDIA In continuation to our earlier update, we shall discuss some other provisions of section 13. According to sub-section (8), the place of supply of certain services like banking, intermediary and short term hiring of transport upto one month shall be the location of service provider. This provision is in alignment with the Rule 9 of the Place of Provision of Service Rules, 2012 which also provides that in case of intermediary services, the place of supply of service shall be the location of service provider. Moreover, the definition of intermediary is also given under section 2(13) of the IGST Act to mean a broker, an agent, or any other person, by whatever name called, who arranges or facilitates the supply of service or supply of goods between t

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ect of transportation of passengers being place of embarkation and supply of services on boarding a conveyance being first scheduled departure of conveyance for journey are same as contained in the Place of Provision of Service Rules, 2012. However, the major change that has continued in the GST regime is regarding place of supply of service for online information and database access or retrieval services (OIDARS). It is worth mentioning that earlier, the OIDARS was covered under Rule 9 of the Place of Provision of Service Rules, 2012 wherein the place of supply for such services was the location of service provider. However, w.e.f. 01.12.2016, the clause (b) of Rule 9 pertaining to OIDARS has been deleted thereby meaning that the general rule shall be applicable for OIDARS. Moreover, special mechanism has been developed wherein the service provider located outside India and providing such OIDARS shall be liable to pay service tax under forward charge. The drastic amendment has been im

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tory has been made liable to pay IGST. The provisions are similar to the recent amendments made in the Service Tax Laws. Not only this, meaning of OIDARS has been given as services whose delivery is mediated by information technology over the internet or an electronic network and the nature of which renders their supply essentially automated and involving minimal human intervention, and impossible to ensure in the absence of information technology and includes electronic services such as (a) advertising on the internet; (b) providing cloud services; (c) provision of e-books, movie, music, software and other intangibles via telecommunication networks or internet; (d) providing data or information, retrievable or otherwise, to any person, in electronic form through a computer network; (e) online supplies of digital content (movies, television shows, music, etc.); (f) digital data storage; and (g) online gaming; The above meaning is also in line with the meaning revised recently in Servic

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Goods and Services Tax – GST – By: – Dr. Sanjiv Agarwal – Dated:- 16-5-2017 – This part of the series contains meanings of certain terms covered in Section 2 of the CGST Act, 2017. These are compensation cess, common working days, composite supply, consideration, continuous supply of goods and continuous supply of services. Compensation Cess [Section 2(22)] Cess means compensation cess payable on designated items under Goods and Services Tax (Compensation to States) Act, 2017. Cess will be payable on both, inter-State and intra-State supply of goods and services or both i.e., on CGST, SGST, IGST and UTGST. Cess is payable for a period of five years to finance compensation payable to States for any revenue loss on account of GST implementation Common working days [Section 2(27)] 'Common working days' in respect of a State or Union territory shall mean such days in succession which are not declared as gazetted holidays by the Central Government or the concerned State or Union te

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s goods and / or services forming a composite supply should pass through the test of naturally bundled . This test distinguishes composite supply from mixed supply. If supply of two or more goods and / or services are not naturally bundled, it will be considered as mixed supply and not as a composite supply. There is a special tax treatment of item of goods and / or services comprising composite supply. The applicable rate of tax in case of composite contract is the rate of tax applicable on the item of principal supply comprised in a composite contract whereas the rate of tax applicable on mixed supply is the highest rate of tax applicable on any item of goods and / or service comprised in a mixed contract. In view of the above, utmost care would be required for the classification of a bundled supply of goods and / or services as composite supply especially in cases where rate of taxation on any one of the items of goods or services is more than the rate of tax applicable on item of p

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vices, three methods of payment have been considered- by way of money, goods in kind, services in kind. Thus, consideration includes the payment in money, payment in kind through goods, payment in kind through provision of services. Payments by a person other than the recipient of goods and / or services will also qualify as consideration. Receipt of any subsidy given by Central or State Government will not be considered as consideration and thus the amount of any subsidy will not be considered for the purpose of charge of GST, Advance consideration received by supplier of goods and / or services is considered as a consideration and thus liable to be taxed. But any deposit, whether refundable or not, would not be considered as consideration and thus no tax would be levied thereon. The transaction of deposits made by recipient of goods and / or services to the supplier of goods and / or services would be considered on the basis of its treatment by the supplier of goods and / or services

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r which the supplier invoices the recipient on a regular or periodic basis and includes supply of such goods as the Government may, subject to such conditions, as it may, by notification, specify. Continuous supply of goods happen when the supply of goods is made or agreed to be made on recurring or continuous basis for which supplier invoices the recipient on a regular or periodical basis. Central or State Governments, on recommendation of the GST Council have the power to declare any supply of goods as a case of continuous or recurring supply of goods. In respect of continuous supply of goods where successive statement of accounts or successive payments are involved, the invoice shall be issued before or at the time of each such statement or on receipt of each such payment. The time of supply of continuous supply of goods will be determined on the basis of earlier of date of invoice or receipt of payment. Continuous supply of services [Section 2(33)] 'Continuous supply of service

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News and Press Release – Dated:- 15-5-2017 – Today, the Reserve Bank of India (RBI) released the report entitled State Finances: A Study of Budgets of 2016-17 , an annual publication that provides information, analysis and an assessment of the finances of state governments. It is the primary source for disaggregated state-wise fiscal data and delineates the changing dynamics of fiscal federalism over the years. The theme of this year s report is the Goods and Services Tax (GST). Highlights of the report are: Introduction of GST would have economy-wide ramifications in terms of growth, inflation, government finances and external competitiveness over the medium-term. It is likely to champion a new course for cooperative federalism in India,

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Goods and Services Tax – Started By: – frankling g – Dated:- 15-5-2017 Last Replied Date:- 15-5-2017 – If an individual arranging trucks to defence department for transportation of canteen items from their main godown to different outlets.Please note that he is only arranging trucks by making payments to truck owners from his own pocket and he is getting monthly payment from defence department after raising his bills .Whether he need to collect service tax/ GST from defence department by adding

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Goods and Services Tax – Started By: – SUSHIL GOYAL – Dated:- 15-5-2017 Last Replied Date:- 15-5-2017 – I am registered under Service Tax Law having turnover of more than 10 lacs but less than 20 lacs. Whether I am required to migrate to GST under the situation when upto 20 lacs a person is not required to be registered under GST Law. Suppose I choose not to migrate to GST with the expectation that the Govt may come out with a clarification and give relief in this regard. What will be the conse

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Goods and Services Tax – GST – By: – Dr. Sanjiv Agarwal – Dated:- 15-5-2017 Last Replied Date:- 15-5-2017 – The understanding of any legal provision is personal to the individual – be it assessee, professionals / consultants or revenue officers. This can be challenged. However, judge's interpretation becomes the court's stand. There are untested news items and views of people who claim that professionals providing services in other States (inter-state) shall have to be registered in such state as a 'casual person' and shall have to pay Goods and Services Tax accordingly. However, if professionals can be termed as casual professionals, then such an understanding may lead to chaos and may not hold legally correct. While taxab

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s no fixed place of business. Further in term of section 24 of the CGST law, casual taxable person making taxable supply shall be liable to be registered under GST law. Casual taxable persons are those persons who undertake business activities in a casual or on temporary basis. They have no fixed place of business (e.g. traders in trade/ business fairs or exhibitions). Such persons may provide or may get involved in supply or acquisition of goods and / or services in any capacity i.e., as principal, agent or in other capacity. However, it should be in taxable territory, in course of furtherance of business. Two features are crucial for a taxable person to be categorized as casual taxable person. One that such person 'occasionally' u

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from Delhi doing audit of a bank is Varansai (UP) is a casual taxable person for this inter-state supply may not be correct. Similarly, Amitabh Bachhan who has his place of business in Mumbai (place of business / fixed establishment / casual residence) doing a film shoot in Bangalore does not become a casual person for such shoot or even for a concert performance. Media ought to act responsibly on such reports and better check with the legal opinion from different and reliable sources. One needs to understand the concept of casual taxable person as well as the logic behind the same. It is desirable that Government also comes out with suitable clarifications to set at rest such confusion / remarks. – Reply By MARIAPPAN GOVINDARAJAN – The Rep

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Goods and Services Tax – GST – By: – Mr. M. GOVINDARAJAN – Dated:- 15-5-2017 – Section 20 of Integrated Goods and Services Tax Act, 2017 ( Act for short) provides that the provisions of CGST Act relating to- scope of supply; composite supply and mixed supply; time and value of supply; input tax credit; registration; tax invoice, credit and debit notes; accounts and records; returns, other than late fee; payment of tax; tax deduction at source; collection of tax at source; assessment; refunds; audit; inspection, search, seizure and arrest; demands and recovery; liability to pay in certain cases; advance ruling; appeals and revision; presumption as to documents; offences and penalties; job work; electronic commerce; transitional provisions; and miscellaneous provisions including the provisions relating to the imposition of interest and penalty. Rules were framed for many of the subjects stated above. Besides rules are required to be made in respect of the following provisions contained

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ne State or Union territory and a consolidated amount is charged for supply of services relating to such event, the place of supply fo services shall be taken as being in each of the respective States or Union territories in proportion to the value for services separately collected or determined in terms of the contract or agreement entered into in this regard, or in the absence of such contract or agreement, on such other basis as may be prescribed; Explanation to section 12(11) – it provides that where the leased circuit is installed in more than one State or Union territory and a consolidated amount is charged for supply of services relating to such circuit, the place of supply of such services shall be taken as being in each of the respective States or Union territories in proportion to the value for services separately collected or determined in terms of the contract or agreement entered into in this regard or, in the absence of such contract or agreement, on such other basis as m

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; Sub-section (5) – place of supply of services by way of admission or organization of an event; are supplied in more than one State or Union territory, the place of supply of such services shall be taken as being in each of the respective States or Union territories and the value of such supplies specific to each State or Union territory shall be in proportion to the value for services separately collected or determined in terms of the contract or agreement entered into in this regard or, in the absence of such contract or agreement, on such other basis as may be prescribed. Section 15 – It provides that the integrated tax paid by tourist leaving India on any supply of goods taken out of India by him shall be refunded in such manner and subject to such conditions as may be prescribed. Section 17(4) – It provides that where an amount has been apportioned to the Central Government or a State Government under section 17(1) or section 17(2) or section 17(3) the amount collected as integra

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ntral tax in accordance with the provisions of section 49(5) the amount collected as integrated tax shall stand reduced by an amount equal to the credit so utilized and the Central Government shall transfer an amount equal to the amount so reduced from the integrated tax account to the central tax account in such manner and within such time as may be prescribed; Section 18(b) – it provides that on utilization of credit of integrated tax availed under this Act for payment of union territory tax in accordance with the provisions of section 9 of UTGST Act, the amount collected as integrated tax shall stand reduced by an amount equal to the credit so utilized and the Central Government shall transfer an amount equal to the amount so reduced from the integrated tax account to the Union territory tax account in such manner and within such time as may be prescribed; Section 18(c) – it provides that on utilization of credit of integrated tax availed under this Act for payment of state tax in a

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TRADE NOTICE No. 02/2017-18 Dated:- 15-5-2017 Trade Notice – Circulars – GST – OFFICE OF COMMISSIONER OF CUSTOMS, CENTRALOEXCISE SERVICE TAX HYDERABAD-IV COMMISSIONERATE POSNETT BHAVAN : TILAK ROAD : RAMKOTE : HYDERABAD-500001 C. No. V/08/01/2017/18-Tech Date : 15.05.2017 TRADE NOTICE No. 02/2017-18 Sub : GST – Migration of Central Excise and Service Tax assessees to GST – Regarding. As you are aware that window for GST enrolment for existing Tax payers of Central Excise and Service Tax on GSTN portal has been closed from 01.05.2017. It is here by informed that the GST enrolment window will re-open on June 01, 2017 for 15 days

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Goods and Services Tax – Started By: – Narhar Nimkar – Dated:- 13-5-2017 Last Replied Date:- 14-5-2017 – Presently, service providers having turnover below ₹ 50 lacs, are allowed to pay service tax on Receipt basis. This provision is not existing in the proposed GST Act.However, what would be the position for invoices raised as per present provisions and for which the payments are received after implementation of GST. Whether service tax should be paid or GST ?? If service tax is to be pa

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PLACE OF SUPPLY OF GOODS OR SERVICES PART-III:- Goods and Services Tax – GST – By: – Pradeep Jain – Dated:- 13-5-2017 – Sec 10: Place of supply of services where the location of the supplier or the location of the recipient is outside India Continuing with the discussion, today we shall further discuss the section 10. The key take away points from this section are: Generally place of supply will be the place of recipient of service, if it is not available then place of supplier of service except of specified services as given in subsequent sub-sections. This is similar to the default rule applicable to domestic transactions No GST on international freight on exports provided by shipping companies to persons located outside India. In followi

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property shall be the place where such property is located or intended to be located Event based services -place of supply will be the place where event actually held If services referred sub-section 3), (4), (5) or (6) are supplied are supplied at more than one location including in taxable territory place of supply would be the location where greatest proportion of service is supplied If services referred sub-section 3), (4), (5) or (6) are supplied in more than one State, place of supply of such services shall be taken as in proportion to the value of services so provided in each State as ascertained from the terms of the contract or on such other reasonable basis as may be prescribed in this behalf. Place of supply for following cases

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Service Tax – By: – Mr. M. GOVINDARAJAN – Dated:- 13-5-2017 – Finance Act, 1994 Online information and database access or retrieval services was introduced in the service tax net with effect from 16.07.2001 vide notification No.4/2001-ST, dated 09.07.2001. Section 65(75) of the Finance Act, 1994 defines the said service as any service provided or to be provided to any person, by any person, in relation to on-line information and database access or retrieval or both in electronic form through computer network, in any manner. Indicate list of services The following are the services are covered under online information and database access or retrieval services – Website supply, web-hosting, distance maintenance of programmes and equipment; Website hosting and webpage hosting; automated, online and distance maintenance of programmes; remote systems administration; online data warehousing where specific data is stored and retrieved electronically; online supply of on-demand disc space. Sup

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updated stock market data, in real time); the provision of advertising space including banner ads on a website/web page; use of search engines and Internet directories. supply of music, films and games, including games of chance and gambling games, and of political, cultural, artistic, sporting, scientific and entertainment broadcasts and events; Accessing or downloading of music on to computers and mobile phones; accessing or downloading of jingles, excerpts, ringtones, or other sounds; accessing or downloading of films; downloading of games on to computers and mobile phones; accessing automated online games which are dependent on the Internet, or other similar electronic networks, where players are geographically remote from one another. supply of distance teaching. Automated distance teaching dependent on the Internet or similar electronic network to function and the supply of which requires limited or no human intervention, including virtual classrooms, except where the Internet o

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r an electronic network and the nature of which renders their supply essentially automated and involving minimal human intervention, and impossible to ensure in the absence of information technology and includes electronic services such as,- advertising on the internet; providing cloud services; provision of e-books, movie, music, software and other intangibles via telecommunication networks or internet; providing data or information, retrievable or otherwise, to any person, in electronic form through a computer network; online supplies of digital content (movies, television shows, music, etc.); digital data storage; and online gaming. GST regime In GST regime online information and database access or retrieval services is included. Since it attracts integrated tax, the provisions relating to this services are found place in Integrated Goods and Services Tax Act, 2017. The provisions relating to this service are discussed in this article. Definition Section 2(17) of the Integrated Good

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ility of the taxable person. The place of supply in respect of online information and database access of retrieval services is dealt with in section 13(12) of IGST Act Section 13(12) provides that the place of supply of online information and database access or retrieval services shall be the location of the recipient of services. The explanation to this section provides that for the purposes of this sub-section, person receiving such services shall be deemed to be located in the taxable territory, if any two of the following non-contradictory conditions are satisfied, namely: the location of address presented by the recipient of services through internet is in the taxable territory; the credit card or debit card or store value card or charge card or smart card or any other card by which the recipient of services settles payment has been issued in the taxable territory; the billing address of the recipient of services is in the taxable territory; the internet protocol address of the de

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hysical presence or does not have a representative for any purpose in the taxable territory, he may appoint a person in the taxable territory for the purpose of paying integrated tax and such person shall be liable for payment of such tax. Payment of tax Section 14(1) provides that on supply of online information and database access or retrieval services by any person located in a non-taxable territory and received by a non-taxable online recipient, the supplier of services located in a non-taxable territory shall be the person liable for paying integrated tax on such supply of services. in the case of supply of online information and database access or retrieval services by any person located in a non-taxable territory and received by a non- taxable online recipient, an intermediary located in the non-taxable territory, who arranges or facilitates the supply of such services, shall be deemed to be the recipient of such services from the supplier of services in non-taxable territory an

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Goods and Services Tax – Started By: – Narendra Soni – Dated:- 12-5-2017 Last Replied Date:- 13-5-2017 – Dear expertKindly confirm whether ITC is available on GST paid by recipient in reverse charge. – Reply By Govind Gupta – The Reply = Tax paid on reverse charge basis will be available for input tax credit if such goods and/or services are used, or will be used, for business. The service recepient (i.e., who pays reverse tax) can avail input tax credit. – Discussion-Forum – Knowledge Sharing

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Goods and Services Tax – GST – Dated:- 12-5-2017 – Today, the Reserve Bank of India (RBI) released the report entitled State Finances: A Study of Budgets of 2016-17 , an annual publication that provides information, analysis and an assessment of the finances of state governments. It is the primary source for disaggregated state-wise fiscal data and delineates the changing dynamics of fiscal federalism over the years. The theme of this year s report is the Goods and Services Tax (GST). Highlights of the report are: Introduction of GST would have economy-wide ramifications in terms of growth, inflation, government finances and external competitiveness over the medium-term. It is likely to champion a new course for cooperative federalism in I

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PLACE OF SUPPLY OF GOODS OR SERVICES PART-II:- Goods and Services Tax – GST – By: – Pradeep Jain – Dated:- 12-5-2017 – Continuing with the discussion, today we shall discuss the changes made in the section 10. It is newly added clause in the draft IGST law for determining place of supply of services where location of service provider or the location of service receiver is outside India. Sec 10: Place of supply of services where the location of the supplier or the location of the recipient is outside India The provisions of this section apply to determine situations where the location of the supplier of service or the location of the recipient of service is outside India. These have been majorly imported from the existing provisions of the p

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vices of sub-section (3), (4) and (5) are provided in more than one State. As per sub-section (3) of section 10, the place of supply of performance based services shall be the location where services are actually performed. Further, as per sub-section (4) place of supply for services provided in relation to immovable property shall be the location of immovable property. Also, the sub-section (5) of section 10 states that the place of supply of services by way of admission to event, fair shall be the place where the event is held. Now, sub-section (6) states that in case services specified in sub-section (3), (4) and (5) are provided at more than one location, place of supply shall be location in taxable territory where the greatest proporti

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Goods and Services Tax – GST – By: – Saurav Mantra – Dated:- 12-5-2017 Last Replied Date:- 23-5-2017 – As the GST is few months away from its much awaited implementation, the transitional provisions assume special importance for all the concerned stakeholders. Transitional provisions, in general terms, are those rules, methods or procedures that will enable the stakeholders to switch over from the current Indirect Tax regime to the GST regime. A detailed analysis of certain provisions under Revised GST Model and their impact are as follows: Amount of unutilised CENVAT credit/ITC relating to Input/Input services carried forward in a return to be allowed as input tax credit The conditions to carry forward the Cenvat Credit/ ITC belonging to the Old Tax Regime to the GST regime are as follows: For unutilised Cenvat Credit relating to Input/Input Services The balance of unutilised Cenvat credit (under Cenvat Credit Rules, 2004 like Excise duty, Service Tax, etc) must have been shown in th

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credited in the ledger and any utilization, refund and reversals will be debited in the ledger. Example of above provisions: Mr. A, dealing in manufacturing of electronic goods, has duly filed the Excise return, VAT return and Entry Tax return for the month of June 2017. Following are the unutilised credits shown in the returns:- unutilised Excise Cenvat credit – ₹ 100000 unutilised VAT – ₹ 75000 unutilised Entry Tax – ₹ 12000 Now, assuming GST rolls out on 01.07.2017 and all such credits are eligible under old law and GST law, the following implications will occur: Unutilized Cenvat Credit for Excise duty for ₹ 100000 will become CGST and will be transferred to electronic ledger. There is no time limit for utilisation of such CGST. VAT and Entry tax will be clubbed and ₹ 75000 plus ₹ 12000, i.e., ₹ 87000 will become SGST and will be transferred to electronic ledger. Such SGST of ₹ 87000 will have to be utilised within 90 days starting fr

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Credit Rules 2004 or under the respective State Value Added Tax laws Such Cenvat credit/Input Tax Credit on Capital Goods should be eligible both under the old law and GST law. Formula: Unutilised Cenvat Credit/Input Tax credit on Capital Goods = Total Cenvat Credit/ITC on Capital Goods minus the amount of such Cenvat Credit/ITC already availed under the earlier law. It is very important to note that the unutilised Cenvat Credit/ITC on capital Goods is eligible under GST even if they are not carried forwarded in the last return of the earlier law. – Reply By Medreich Limited – The Reply = Hi Sir,As per your article, VAT Credit should be utilized within 90 days, whether it is prescribed in the Act? VAT and Entry tax will be clubbed and ₹ 75000 plus ₹ 12000, i.e., ₹ 87000 will become SGST and will be transferred to electronic ledger. Such SGST of ₹ 87000 will have to be utilised within 90 days starting from 01.07.2017 – Reply By SANJAYKUMAR BEHURA – The Reply = De

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Goods and Services Tax – Started By: – Yatin Bhopi – Dated:- 11-5-2017 Last Replied Date:- 11-5-2017 – Dear expertsCurrently we have few consignment agents in Three different states. Whether we need to add this consignment agents in our GST registration as a additional place of business? or they have to independently registered themselves in GST – Reply By KASTURI SETHI – The Reply = As per Section 4 Explanation VI (c) (iii) of Central Excise Act, premises of consignment agent are equal to depo

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