Goods and Services Tax

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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Goods and Services Tax – Started By: – Amit Choudhary – Dated:- 8-6-2017 Last Replied Date:- 11-6-2017 – First : Educational institute reg u/s 12AA rented immovable property to a company for residential dwelling use . Second : Company run hostel and collect fees for students of school/ college. What will be the Service tax liability of 1. Educational institute 2. Company taxability – Reply By Himansu Sha – The Reply = Educational institute will pay service tax subject to the 10lakh cap as the h

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Goods and Services Tax – Started By: – Narendra Soni – Dated:- 8-6-2017 Last Replied Date:- 13-6-2017 – Dear experts,Please suggest what type of document (Tax invoice or Bill of Supply or Debit note or Payment voucher etc…..) shall be issued by an UN REGISTERED supplier at the time of supply in GST. – Reply By Vipul Singh – The Reply = Bill of Supply – Reply By Narendra Soni – The Reply = Sir, Bill of supply will be issued by registered person only, in the following two situations:- 1 – exempted supplies made by him 2.Composition levy supplies . Hence an unregistered person can not issue bill of supply, please see section 31(3)(c). – Reply By Vipul Singh – The Reply = Dear NarendraA bill of supply is issued in cases when a registered per

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Goods and Services Tax – GST – Dated:- 8-6-2017 – Implementation of Goods and Services Tax (GST) on the following items will have zero rate after the GST Law comes into force on 1st July, 2017. As a result of which these items will be available at cheaper rates to the common man at large: 1) Foodgrains and flours a. Cereals b. Pulses c. Atta d. Maida e. Besan Except branded ones with registered trade mark in whose case GST will be charged at the rate of 5 %. 2) Fresh milk 3) Fresh vegetables an

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Goods and Services Tax – GST – Dated:- 8-6-2017 – The Union Minister of Finance, Defence and Corporate Affairs, Shri Arun Jaitley thanks all the political parties for their cooperation and contribution in making it possible to launch GST with effect from 1st July, 2017; Asks the Members of Parliament (MPs) and MLAs of different political parties to equip themselves with the finer points of the Single Tax GST regime in order to explain the same to the people at large. The Union Minister of Finance, Defence and Corporate Affairs, Shri Arun Jaitley has thanked all the political parties for their cooperation and contribution in making the launch of Goods and Services Tax (GST) possible with effect from 1st July, 2017. In a letter addressed to

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Laws and Rules and GST rates for all the commodities. The Union Finance Minister Shri Jaitley further said that GST is the most important tax reform since independence and is going to substantially ease doing of business in India which will promote new investment and contribute to the overall GDP growth. Shri Jaitley further said that GST will also help in removing the cascading effect of taxation and will give relief to the common man by leading to reduction in prices especially of essential consumer goods. The Finance Minister also said that in terms of revenue growth, GST will help all the consumption States. Highlighting the role of Members of Parliament (MPs) and Members of Legislative Assemblies (MLAs) in creating mass awareness abou

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Goods and Services Tax – Started By: – SURYAKANT MITHBAVKAR – Dated:- 8-6-2017 Last Replied Date:- 9-6-2017 – While Implemetation of GST, availing balance credit on service tax we have to disclose in last return to carried forwards in GSTN Server.As per Service tax Act, Credit is eligible after making payment to service provider.can we issue only cheque in name of service provider (Not present in their Bank which will done in next month i.e. July-17) and avail service tax credit . – Reply By A

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Goods and Services Tax – Started By: – Vishnu Dutt Gupta – Dated:- 8-6-2017 Last Replied Date:- 18-6-2017 – Dear Sir,If we are doing stock transfer from manufacturing plant to depot's, In GST regime how much value we consider.Actual valueCost +10%90% of valueRgds,MJ – Reply By Himansu Sha – The Reply = In my view, another option is there, where the gst is available as credit, the value declared in the invoice is the open market price – Reply By Vishnu Dutt Gupta – The Reply = Dear Sir,Yes w

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