Goods and Services Tax

SECTION 2(37) DEEMED EXPORTS
By: – Pradeep Jain
Goods and Services Tax – GST
Dated:- 27-1-2017

DAILY DOSE OF GST UPDATE BY CA PRADEEP JAIN
SECTION 2(37) DEEMED EXPORTS:-
In continuation to our updates on definitions in Revised Model GST Law, we hereby discuss the definition of deemed exports which reads as follows:-
“Deemed Exports”, as notified by the Central Government/State Government on the recommendation of the Council, refer to those transactions in which the goods supplied do not leave India, and payment for such supplies is received either in Indian Rupees or in convertible foreign exchange;
The term 'deemed exports' is often referred in the context of Foreign Trade Policy but it is observed that the proposed GS

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

s pertinent to mention that deemed exports under DGFT cover supply of goods under advance authorisation, supply to EOU/STP/EHTP/BTP, supply of capital goods against EPCG etc. Since the objective of introducing the concept of deemed exports under FTP is different. It allows the one of three benefits viz. refund of Terminal excise duty, duty drawback and advance authorisation to supplier of goods. The proposed revised GST Law proposes to remove any ambiguity as regards transactions that will be considered as deemed exports. This is for the reason that under GST Law, relevance of deemed exports is limited to grant of refund of taxes on supply of goods regarded as deemed exports. Even this will not allow the removal of gods at nil rate of duty

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

Consignment Sales Agent (CSA) change in GST
Query (Issue) Started By: – Avinash Agarwal Dated:- 26-1-2017 Last Reply Date:- 30-6-2017 Goods and Services Tax – GST
Got 5 Replies
GST
Dear All,
As there used to be CSA in case of VAT regime where company used to transfer stock to CSA against F-form, where all the sale proceeding used to be transferred directly to company and CSA used to get commission.
However, now in GST it is understood that F-form format is waived off. All transfer of goods will be in the form of Sale & Purchase.
So, how do you see as the tax implication in such case for CSA agent who is receiving the goods and selling it for company. Since all transactions are done in CSA's TIN/GSTIN, how do we justify i

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

registration for VAT /CST was taken by CSA. In the same way under GST as well the main dealer would enrol by adding the CSA's address as additional place of business. CSA would not require to get separate registration. This is my view. Thanks.
Reply By YAGAY AND SUN:
The Reply:
However this is optional to show CSA's place as additional place of business. Further its Turnover will be added in your company's turnover.
Reply By Ganeshan Kalyani:
The Reply:
It is better to show the additional place of business in the enrolment form.
Reply By Prashant Asija:
The Reply:
Hi with reference to the abovce discussion we need to know the treatment on stock held by consignment agent
1. Either we will treat that as our stock and take

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

GSTN registration for One PAN and multiple TIN within state
Query (Issue) Started By: – NAUSHERAWAN SM Dated:- 25-1-2017 Last Reply Date:- 26-1-2017 Goods and Services Tax – GST
Got 3 Replies
GST
We have one PAN and multiple TIN in Jharkhand. Let me know the registration procedure for GSTN.
Reply By Ganeshan Kalyani:
The Reply:
Sir, you can enrol with one TIN and add other TIN/location as additional place of business.
If your business verticals are different then separate GSTN i

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

Arrival of HSN
Query (Issue) Started By: – NAUSHERAWAN SM Dated:- 25-1-2017 Last Reply Date:- 26-1-2017 Goods and Services Tax – GST
Got 4 Replies
GST
Let me know how we can arrive of HSN code. We are manufacturing Motor Vehicle Parts, Excavator Parts, Parts and spares of engine, Forgings, Castiangs.
Reply By Ganeshan Kalyani:
The Reply:
For the purpose of GST enrolment, the HSN code of Central Excise is to be referred. However, under GST the same is not yet finalised.
Reply By

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

Approach for selection of Registrations for issuance of Provisional IDs Overview
GST
Dated:- 25-1-2017

CBEC has started the process of migrating the existing Central Excise (CE) and Service Tax (ST) registrations to GST and issue Provisional IDs to them. As a mandatory requirement, only PAN based registrations would be issued Provisional ID. It is therefore, advised that all Assessees having non-PAN based registrations, get their registrations converted to PAN based to obtain Provisional IDs.
Since GST registration will be based on PAN and State, only one Provisional ID will be issued to a given PAN for a given state, irrespective of the number of registration on that PAN in that state. For Ex – PAN 'XXXXX1111X' has 10 CE registrations in the state 'Maharashtra' from 'XXXXX1111XXM001' to 'XXXXX1111XXM010'. In such cases only one Provisional ID will be issued to the registration 'XXXXX1111XXM001' (first registration when sorted alphabetically). In case the assessee wishes

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

case there are multiple registrations for the same 'State' and 'PAN' combination, then the first registration in the alphabetical order would be granted the Provisional ID.
In Step 2, all registrations belonging to 'EM' category would be selected for issuance of Provisional IDs. In this step, only those registrations would be issued a provisional ID where the combination of 'State' and 'PAN' is not already occurring in Provisional IDs issued in Step 1. Similarly for step 3 'XD' registrations would be selected and Provisional ID issued to only those registrations where the combination of 'State' and 'PAN' is not already occurring in Step 1 and Step 2. Similarly step 4 and 5 would be executed.
Additionally, Each CE registration contains 2 addresses – one for the Head Office and another for the Business Premise. For a given CE registration, if the 'State' for the 'Head Office' and 'Business Premise' is different, then the registration will be eligible for issuance of 2 provisional IDs w

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

in Non-Centralized registrations. In this case, 10 (15 – 5) provisional IDs would be issued.
Once the list of registrations in ST to be issued Provisional IDs is selected (including both Centralized and Non-Centralized), this would be checked with the list of registrations selected for Provisional IDs for CE. All ST registrations where the combination of 'State' and 'PAN' is same as that used in any of the CE registrations already selected would be removed from the list and would not be issued any Provisional ID.
Summary:
1. Provisional IDs would be issued only for PAN based registrations.
2. Only one Provisional ID would be issued for multiple registrations where the combination of 'State' and 'PAN' is same and it would be for the first registration selected in the alphabetical order.
3. For CE registrations, the order of selection is 'XM', 'EM', 'XD', 'ED' and 'EI'
4. For ST registrations, the order for Non-Centralized is 'SD', 'ST' and 'SE'.
5. Only those ST registrations wou

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

Composition levy on GST , IMPACT on Industry
By: – Tarun Agarwalla
Goods and Services Tax – GST
Dated:- 25-1-2017

Composition scheme under Model GST Law, its impact on industry
A. Introduction:
1. The New Model GST Law ( henceforth “MGL”) as made available in the public domain as on 26th November 2016 have brought out many changes with respect to the provisions with respect to composition levy. Composition Levy has been present in indirect taxes to address the small business units or specific business units having complexity in the valuation of taxable amount.MGL section 9 talks about payment of taxes in lieu of normal tax liability under section 8 of MGL, talks about Levy in general. Composition scheme also brings a lesser compliance requirements, however, composition scheme normally successful in B to C segment rather than B to B segment.
2. At present almost all the state VAT laws normally have provisions for taxpayers to opt for composition scheme. Broadly two ty

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

; 10 Lakhs.
d) Further composition levy facility is to be used on all India PAN basis. It means all the registration across India belongs to the same PAN must avail the scheme.
e) Once on a particular day, the aggregate turnover exceeds ₹ 50 lakhs, the scheme deemed to be withdrawn from such date.
f) If the proper officer has reasons to believe that a taxable person was not eligible for the scheme, the taxable person shall pay tax under normal provisions and penalty.
5. Restriction for the scheme: – under the provision of section 9(1) of MGL, Composition semen could not be allowed in the following class of taxable persons:-
a) who is engaged in the supply of services, or
b) who makes any supply of goods which are not liveable to tax under this Act, or
c) who makes any inter-State outward supplies of goods; or
d) who makes any supply of goods through an electronic commerce operator who is required to collect tax at source under section 56; or
e) Who is a manufacturer of

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

t (including Real estate, builders) would be regarded as services and not goods. In this respect the following issues may found relevant:-
a) The transitional provisions section 172 may be used fully for such cases where a composition dealer may not be eligible under MGL.
b) Works contractor normally be under composition scheme of Sate VAT and service tax normally be paid under abatement forging the CENVAT on inputs. In this case the Cenvat Credit on stocks, semi fished and finished stocks may not be available under section 172 of MGL. However, section 169 related to the general availability of credit may come for rescue. However, it is the subject matter of further analysis.
9. What would be regarded as composition scheme under earlier law gave not been provided in the MGL. For instance, there are cases in excise where the special rate of duty has been allowed without taking any CENVAT credit. In the MGL it is given that, Persons Manufacturing, specified items may not opt for compo

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

ale, transfer, barter, exchange, licence, rental, lease or disposal or any other means made or agreed to be made by such person in the course or furtherance of business.
11. Impact on decisions in GST
a) As the small dealers in the majority of states are operating with the existing turnover limit of ₹ 50 lakhs. The impact may not be much. However, the majority of them may not cover due to the enhancement of taxable limit of ₹ 20 lakhs from the existing ₹ 10 lakhs.
b) The persons present in more than one state with the same PAN may face a new difficulty in tracking the turnover limit of ₹ 50lkh, collectively.
c) Input tax credit as per section 18(3) of MGL, the carry forward credit and compliance there off may discourage to the scheme.
d) A majority of works contract cases were availing the composition scheme as there was no turnover limit earlier. However, at present, the segment was regarded as service and hence not eligible at all for the composition sche

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

Definition of Turnover in a State and Zero rated supply
By: – Pradeep Jain
Goods and Services Tax – GST
Dated:- 25-1-2017

DAILY DOSE OF GST UPDATE BY CA PRADEEP JAIN
Definition of Turnover in a State and Zero rated supply
Taking further to our discussion, we are continuing our discussion the definitions given under Section 2 of revised GST law and comparing the same with old model GST law to know the changes made in revised law:-
2(107): Turnover in a State: The new definition reads as follows:
Turnover in a State means the aggregate value of all taxable supplies, exempt supplies, exports of goods and / or services made within a State by a taxable person and inter-state supplies of goods and / or services made from the S

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

is Act;
As a result the taxable person opting for composition levy, while calculating the limit of 50 lakhs as turnover in a state won't have to include such non taxable supplies giving the benefit of additional margin of turnover.
Also the Input service distributors, while calculating the ratio of the units where the cenvat has to be distributed, won't have to include the value of non taxable supplies to the total turnover.
But there is definition of "exempt service" given under Section 2(44) which reads as follows:-
“exempt supply” means supply of any goods and/or services which are not taxable under this Act and includes such supply of goods and/or services which attract nil rate of tax or which may be exempt from tax under

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

Zero rated supply: the new definition reads as follows:
Zero rated supply means supply of any goods and/or services in terms of section 15 of the IGST Act 2016
In the IGST act it is defined as any of the following taxable supply of goods and/or services, namely –
(a) export of goods and/or services; or
(b) supply of goods and/or services to a SEZ developer or an SEZ unit
First of all it should be noted that reference is given that of section 15 whereas it should have been section 16. There seems to be a clerical error. Further if compared to the old definition, it can be noted that supply to SEZ unit or developer have been included in the scope of zero rated supplies. Also the old definition had the condition that cenvat shall be allow

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

GEMS & JEWELLERY INDUSTRY UNDER GST REGIME (PART-3)
By: – Dr. Sanjiv Agarwal
Goods and Services Tax – GST
Dated:- 25-1-2017

Job work and GST
Gems and jewellery sector is highly labour intensive and lot of work is done on a job work basis involving manual labour. The principal manufacturer has the option to send taxable goods without payment of GST to a job worker and bring it back, after processing, to any of his own place of business, for supplying such goods on payment of GST or export it. The principal also has the option to directly supply final products to end customers on payment of GST or export from the premises of job worker itself, subject to fulfillment of applicable conditions. GST credit is allowed in case of direct receipt of inputs or capital goods by the job worker, subject to receipt of goods back by the principal within specified period i.e., one year/ three years.
Under the present service tax, job works in relation to cut and polished diamonds and

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

would be treated as non-taxable and not as zero rated.
However, definition of import of service does not specify such exclusion. Logically, definition of import of service also excludes services imported from overseas branch but clarity should bring for better understanding.
Supply provided to domestic branch in other States shall be considered as distinct person. Accordingly, IGST would be leviable on such supplies.
Domestic / SEZ Supply
For units located in SEZ having operations across India and providing supply of services to customers located across India, the issue would arise as to where to pay GST and whether this would require splitting of invoices based on various locations of the service provider or the service recipient.
For this purpose, the model GST law has prescribed the requirement of determination of the location from where the services are provided and the place of supply of such services, so that GST may be paid to the appropriate Government.
In the context of

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

ice Tax.
Comparison between taxability under existing indirect tax laws and the model GST are as follows:
Taxes
SEZ units
Present regime
GST regime
Customs Duty
Exempt
Basic Custom Duty – Upfront exemption may continue
Excise Duty
Service Tax
CST/VAT
Upfront exemption / refund
Payable (subsequently refundable)
As per revised Model GST law, if a SEZ unit is receiving zero rated supply, it shall be eligible to claim refund of IGST paid by the registered taxable person on such supply. But again this will lead to blockage of working capital which may lead to increase in price.
Supply of goods and/ or services to or by a SEZ unit, shall be deemed to be a supply of goods and/or services in the course of inter-State trade or commerce. Accordingly, on supply of goods and/or services to or by a SEZ unit shall attract IGST at the prescribed rate but it may not exceed twenty eight percent as proposed now.
Exports
In case of export of products, raw material and capital goods are

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

Stock lying with consignment agent and brances
Query (Issue) Started By: – RAM SHARMA Dated:- 24-1-2017 Last Reply Date:- 26-1-2017 Goods and Services Tax – GST
Got 3 Replies
GST
Dear Sir,
*
Whether we have to reverse cenvat credit and vat utilized in manufactuing of finished goods lying with our agent/brances or will be paid IGST on appointed date ? (Section 192 193,to 194)
*
What will be the treatment of discount if we have issued debit note/credit note after issue the sal

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

Clarification on invoice serial number
Query (Issue) Started By: – saket s Dated:- 24-1-2017 Last Reply Date:- 29-4-2017 Goods and Services Tax – GST
Got 6 Replies
GST
Dear Sir,
Need clarification on invoice serial number in GST. As per Invoice draft rule it says that we should have one unique series for one financial year. We have 3 warehouses in the same State following difference sequel of series at present and we want same to be continued in GST law also. Is it possible to continue this practice under GST regime?
Saket
Reply By YAGAY AND SUN:
The Reply:
This can be allowed but there is no specific provision in Model GST Law. It may be clarified when the final GST Law would come in force.
Reply By Ganeshan Kalyani:
The

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

GST: PREPARING FOR JULY 2017 NOW!!
By: – Dr. Sanjiv Agarwal
Goods and Services Tax – GST
Dated:- 24-1-2017

GST Council's 9th meeting was held recently on 16th January, 2017 for the ninth time, second time in 2017, for deciding upon the unresolved issues, mainly about the cross empowerment and territorial jurisdiction of states. This meeting was considered significant for timing of GST as the last attempt to reconcile and make the states agree, if the Union Government was still eyeing at 1st April, 2017 for GST introduction. However, the GSTC did decided the issues before it but also deferred GST schedule by a quarter to 1st July, 2017.
States wanted that they should control the entire assessee base including service tax assessees below the threshold limit of ₹ 1.5 crore whereas Centre was of the view that the States lack expertise and knowledge in service tax. While this may be true in the present scenario, training can always be imparted and no such beginni

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

enges. GSTC also agreed to states being allowed to have control over territorial waters. Though general consensus is being looked at, States like West Bengal and Kerala still continue to be in opposite camp.
The Centre and States have agreed to share the entire taxation base for assessment with a horizontal division. According to the agreed formula, which will apply for both goods producers and service providers, States will have the power to assess 90 per cent of all assessees with a GST turnover of ₹ 1.5 crore or less and the remainder will be with the Centre. Further, assessees with a GST turnover of over ₹ 1.5 crore will be assessed in a 50:50 ratio by the Centre and States. Intelligence-based enforcement powers will vest with assessing officers of both the Centre and States for all assessees.
Both have agreed that no assessee would be controlled by two authorities and there would be computer-based enforcement at both the Centre and the states. Those assessees who fal

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

able w.e.f. 1st July, 2017, i.e., in 2017-18 fiscal, for quarter-I, we will have present tax regime and for remaining three quarters, we will be having GST in place. Even if it is delayed beyond July 2017, the transition may not be an issue as it is a transaction tax. July may be a reality, hopefully so.
GST Council is also understood to be working on tax rate structure for services. This could be in 2-3 slabs for basic, standard and luxury / high end services. If this is through, we will end up in having too many GST rates which may not be desirable. It is expected that finalizing of segment wise GST rates will take some more time.
On industry front, as the date comes nearer, there are going to be major challenges which inter alia include cash flow management, working capital, logistics, IT solutions, inventory planning and so on. Planning on all these fronts is subject to final law, rules, rates and credit / refund rules.
With Union Budget 2017-18 now scheduled to be presented in

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

Definition of Principal place of business, Proper Officer and Services
By: – Pradeep Jain
Goods and Services Tax – GST
Dated:- 24-1-2017

DAILY DOSE OF GST UPDATE BY CA PRADEEP JAIN
Definition of Principal place of business, Proper Officer and Services
Taking further to our discussion, we are continuing our discussion the definitions given under Section 2 of revised GST law and comparing the same with old model GST law to know the changes made in revised law:-
2(77) Principal place of business: the new definition reads as follows:
Principal place of business means the place of business specified as the principal place of business in the certificate of registration;
The old definition read as follows:
“principal place of

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

every registered premise would have to be classified as principal place of business inviting litigation. Deleting the condition of keeping books of accounts has made the definition simple to follow and now the assessee can name any of his premises as principal place of business. But there is no need to keep books of accounts there only. It can be kept at any place of business.
2(79) Proper Officer: the new definition reads as follows:
Proper Officer in relation to any function to be performed under this Act, means the officer of goods and services tax who is assigned that function by the Commissioner of CGST / SGST;
The old definition reads as follows:
“proper officer” in relation to any function to be performed under this Act, means th

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

but does not include money and securities;
Explanation 2.- Services does not include transaction in money other than an activity relating to the use of money or its conversion by cash or by any other mode, from one form, currency or denomination, to another form, currency or denomination for which a separate consideration is charged.
The old definition read as follows:
“services'' means anything other than goods; Explanation: Services include intangible property and actionable claim but does not include money.
The amendment bought in the definition is that Securities explicitly excluded from services definition. We have told in our earlier update that securities are excluded from the definition of "goods" under Section 2(49)

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

GEMS & JEWELLERY INDUSTRY UNDER GST REGIME (PART-2)
By: – Dr. Sanjiv Agarwal
Goods and Services Tax – GST
Dated:- 23-1-2017

Place of Registration
In the present indirect tax regime, there is a concept of Centralized registration under Central tax laws.
Under GST regime, registration may be required in each State from where supplies are being made. Hence, manufacture/dealer may need to obtain registration in each State where there is a premises (including site office) from where services are being provided. Centralized registration will no longer be available.
Returns
Under existing indirect tax laws, assessee has to submit 2 half yearly returns under Service Tax, monthly /quarterly return under Central Excise and quarterly returns under VAT laws in a year. Model GST Act provides following returns which are required to be submitted by the registered person :
S.no.
Return
Periodic return to be filed for
To Be Filed By
1.
GSTR-1
Outward supplies made by taxpaye

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

bsequent month. This provision places the liability for non-compliance on the recipients, i.e., the companies, 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 companies for non-compliance by vendors.
Rate of GST
While rates of GST on are likely to be in the range of 5-28 percent, what rate of GST shall be applicable to gems and jewellery is not yet decided. The lowest rate as per slabs agreed upon in GST Council is 5 percent. However, lower rate is not ruled out. The industry is demanding for a tax slab of 1-2 percent.
Payment
Any tax, interest, penalty, fee, etc., shall be paid via internet banking or by using credit/debit cards or NEFT or RTGS. This amount s

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

has been liberally defined for being eligible to claim input tax credit in respect of capital goods. “Capital goods” means goods, the value of which is capitalized in the books of accounts of the person claiming the credit and which are used or intended to be used in the course or furtherance of business. Accordingly, input tax credit will be eligible for capital goods only on those goods, the value of which is capitalized in the books of accounts. This will enable many taxable persons to claim cenvat credit.
A taxable person (exporter) may claim refund of any unutilized input tax credit at the end of any tax period. In other words, exporter of services shall be eligible to get refund on eligible inputs, capital goods and input services.
Input Service Distributor Concept (ISD)
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 or IGST). Consid

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

Transitional Challenges in GST implementation
By: – Ravi Kumar Somani
Goods and Services Tax – GST
Dated:- 23-1-2017

India is committed to implement Goods and Service Tax (GST). GST is expected to be implemented from April 2017 or a little later. The tax system is currently in the drafting stages with a few undecided issues holding up the agreement between the states and the Centre. The implementation of GST does not just involve tax reform, it is instead a complete business reform. Therefore, changing the historical ways of doing business calls for larger challenges and increased sense of responsibility as any slip up can also have the business continuity/ survival risks. This article discusses the various transitional aspects that needs to be looked into and the challenges that the businesses face in doing the same. Various transitional challenges are as under:
Finalising the GST Transition Model:
The first and foremost challenge in the implementation of the GST is

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

model, GST is implemented with collaborated efforts of internal team and the outside professionals clearly dividing the roles and responsibilities of internal team and the external experts. This is more appropriate model for major of the companies who have fairly decent capacities in respect of the executing manpower and knowledge of the taxation system. The capacity and the knowledge can be optimally utilized by partnering with the professionals.
Credits Transit, Maximization, documentation, Methodology:
Various transitional provisions has been prescribed to deal with transfer of credits in the GST regime. However, transition of credits is going to be a big challenge in the GST regime especially for the following businesses:
* Where credits in books are not reconciled with returns over a period of time;
* Book stocks never match with the physical stocks. There is no regular stock taking exercise being conducted;
* Tax invoices received from vendors not being properly documen

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

transition. Therefore, proper care must be taken while availing/ transferring the credits ensuring due compliance of the law. Whether to avail the credit of disputed items could be a vital decision which would require legal confirmation considering the latest case laws as also the time limit of 1 year of the invoice. Further, businesses must have proper documentation, trails in place to establish the claim of the credit at a later date during departmental audits.
Business Model Re-structuring:
All businesses will undergo a change due to advent of GST. However, the businesses who act and restructure its model as per the requirement of the GST will have a competitive edge over others. Various re-structuring aspects that can be looked into are as under:
* Whether to change the manufacturing location, principle place of business;
* Adding locations of supply being closer to customers/ vendors – Making national presence – No state barriers for supply;
* Shutting down locations, war

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

s under:
* Strategizing the stock transfers to avoid working capital blockage;
* Breaking a composite supply into multiple different supplies – For Ex: Combos with aerated drinks in restaurants, Cinema halls;
* Merging multiple supplies into a composite supply – For Ex: Vaastu, High Rise Premium to be merged with construction;
* Determining whether a transaction to be restructured as a Composite supply or as a Mixed supply;
* Clear breaking up the Price to optimize taxes;
* Revisiting the Discounts policy – Nature of discount, Cash discount or trade discount, whether linked to invoice or not;
* Security Deposits in lieu of advances to ease cash flows;
* Reviewing pricing of all related party vendors to avoid disputes in transaction value – Able to establish arms length;
* Doing away with the policy of raising Mother Purchase Order's with supplies over a period of time.
This is just an illustrative list, there can be many more aspects to transactional restructuring, t

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

can be intimated to the department for records purpose.
What if certain transitional aspects are practically difficult to implement:
There can be certain transitional aspects which would be more complex in a practical scenario and there may not be only one view of the same. For instance: Determining the quantum of availing credits based on stock or determining the right pricing for goods/ services in the GST regime considering the anti-profiteering measures. In such cases, businesses shall face challenge in selecting the right approach. Further, the approach adopted may easily be contradicted by the department. Therefore, in such scenarios businesses must have proper documents, evidences in place and if possible get the same duly certified by the competent authorities to establish its claim.
Updation of various GST laws for each state in a quick short time and complying with the procedural aspects of each state:
In embracing a change it becomes crucial for businesses and professio

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

sses to quantify the benefit and determine the commensurate reduction in pricing that would be required to off-set the benefit. This shall be very complex aspect that the businesses are going to face. The consequences of the same will be faced at the time of departmental audits in the GST regime. Therefore, due care needs to be taken under the guidance of the professionals while dealing with such loosely drafted provisions in the law without clear guidance.
Filing of the last return in the current tax regime:
Filing of the last return in the current tax regime is like a last chance to make good the old issues and start afresh. Based on the impact assessment, complete sanctity check for the last 1 year must be done and the same must be given effect to in the last returns. Missed credits, doubtful credits, credits reversed to buy peace etc. can now be availed in the last return with proper intimation to the department. Transactions overlapping between the two regimes must be clearly un

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

Constant communication with the vendors/ customers and their support is very crucial in smooth transition. Carrying along the un-organized vendors into the GST regime is a risky affair. Many aspects of the GST regime such as matching concept, compliances etc. will be perturb the business in GST regime if the vendors are not organized. Therefore, the challenging task of the vendor evaluation/ assessment and their preparedness for the GST must be assessed well in advance during the transitional phase so that the loose link the chain is not carried along to the GST regime. Vendors who understand can pass on the benefit and ensure that the intermediate supplier is not out of pocket when the customer reduces the prices.
Nature and extent upto which ERP system must be tweaked:
Needs of the businesses from ERP shall undergo a change in the GST regime, but the crucial decision making factor is to understand the nature and extent of the tweaking to the ERP that is required to be done to atle

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

g its impact could be a risky proportion. Further, impact assessment helps in channelizing the transitional efforts in the right areas. Various aspects that needs to be considered in the process of impact analysis are as under:
* Understand self business first – As-is mapping of the business transactions
* Perform minimum past one year sanity check
* Credit Maximization, Review of present credits & compliance
* Performing various ratio analysis to understand the business and its GST impact
* Assess detailed impact on business as a whole, business transactions and impact on various business departments.
* Proactively mitigate the risks of the negative impact. Enhance the positive impact.
* Implementation not restricted to Finance & Accounts department. Readiness and learning equally required by procurement, production, stores, Sales & Marketing, IT, Admin & HR departments also.
Businesses acting early on the GST impact to have edge over competitors.
Conclusion:
Business

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

Kalyan Tourist Home Versus State of Kerala
GST
2017 (1) TMI 1716 – KERALA HIGH COURT – TMI
KERALA HIGH COURT – HC
Dated:- 23-1-2017
S.T. Rev. No. 33 of 2014
GST
T.B. Radhakrishnan And Devan Ramachandran, JJ.
For the Appellant : Thomas Abraham and K.P. Pradeep
For the Respondent : Mohammed Rafiq, Sr. Government Pleader
ORDER
T.B. Radhakrishnan, J.
1. These revisions are by an assessee who is eligible to pay tax at compounded rate under S. 7 of the Kerala General Sales Tax Act, 1963, 'Act', for short. It is also not in dispute that the assessee is one who has a bar attached hotel of and below two star. This means that if he opts under S. 7 for payment of tax at compounded rate, he would be governed by S. 7(1)(i), which provision has two Clauses – (a) and (b), which operate in alternative. Clause (a) or (b) would apply depending upon which would bring home to the Revenue through the compounded scheme, higher revenue as tax. The assessee applied for payme

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

ything depends upon the turnover or the total amount that would be generated as revenue through the taxes from the assessee for the relevant period to decide as to whether it is Clause (a) or (b) of S. 7(1)(i) that would apply. Decisions of the Hon'ble Supreme Court of India in Bhima Jewellery (M/s.) v. Asstt. Commissioner (Assessment), Kerala & Anr. (2014 (71) VST 110 (SC) : 2014 KHC 5346), Raju Jacob v. Sales Tax Officer (2006 (1) KLT 788 : 2006 KHC 246), Koothattukulam Liquors v. Deputy Commissioner of Sales Tax (2015) 12 SCC 794) and Annie George, Proprietrix v. The State of Kerala (2007 (1) KLT SN 4 (C. No. 6) : 2006 KHC 1701) do not go away from the principle that we have stated herein to that effect. While Koothattukulam Liquors (supra) dealt with a case of payment of tax at compounded rate on the basis of excise duty component, other decisions, particularly Bhima Jewellery (supra), deal with the quality of the contract of compounding and specifically state that compounding

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

that rate of tax and the question whether the assessee would be able to opt as between Clauses (a) and (b) of S. 7(1)(i), is also within the bargain on which the compounding is accepted. So much so, the stand of the Revenue that the assessee/revision petitioner had to pay the particular amounts demanded by the assessing authority under S. 7 does not stand.
2. Be that as it may, we have also considered yet another submission. The plea of the assessee through its learned counsel is that the assessee had voluntarily made an option and the assessing authority had accepted tax from him. He, therefore, tries to build up a plea somewhere in the realm of what could be thought of, too remotely, as exchequer. We notice this to say that the crucial further argument is that the Accountant General's office had made an audit of the office, and in the course of the audit, the Accountant General's squad had pointed out that the assessee had not paid the entire amounts due under S. 7(1) of th

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

gement of the State. In the course of such exercise, it is well within its fiscal management of the State Government and also through the controlling and regulatory power of the Accountant General's office to point out the statutory officers concerned, the deficit in payment of taxes. What has been done in the case in hand is that when the Accountant General's audit squad had pointed out the deficiency and deficit in the payment of taxes payable under S. 7(1) by the assessee, a notice was issued by the assessing authority calling upon the assessee to pay the balance amount. After such notice, a reply was delivered by the assessee. That was considered and thereafter, an order was issued apparently under S. 7. Calling it as an assessment order or a notice demanding payment, in law and in fiscal jurisprudence, it makes no difference because all that has been asked for is requiring the payment of amounts which are due to be paid merely by operation of law and not on the basis of an

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

the assessing authority has accepted the option, and therefore, could not have done so without making a concession against any claim for further amounts. We state this argument only to be rejected because there is no question of any misrepresentation of any nature, since the payment of tax consequent on an option exercised by the assessee does not depend upon any representation of the assessing authority or any other statutory authority under the Act. What we say now is in tandem with what we have already said as to the automatic flow of the consequences of option. Further, there is no question of the assessee opting either for a particular rate of tax or for opting as between Clauses (a) and (b) of S. 7(1)(i) of the Act adverse to the interest of the Revenue. For the aforesaid reasons, we are of the view that the Tribunal cannot be criticised of having failed to decide or having left undecided any question of law which arises for decision in these cases. These revisions fail.
In the

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

Place of Supply and registration
Query (Issue) Started By: – Chandrashekhar Kandpal Dated:- 21-1-2017 Last Reply Date:- 23-1-2017 Goods and Services Tax – GST
Got 3 Replies
GST
We are in the business of publication of magazines and organising international trade exhibitions. I will be grateful if you could advise us on the following with respect to GST implications:
We publish the magazines in Maharashtra and the Advertisers are from all over the world. We send the copy of the magazine along with the invoice to the client. As per place of supply of services, the service provided to a registered person shall be the location of such person. Here I presume registered person means the recipient registered in the state from where t

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

) IGST or (b) SGST & CGST.
Question 2. If we organise an Exhibition in other state where we have branch office. Do we need to take registration in that state? if yes, will it be a regular registration or Causal Taxable person.
Question 3 .If we organise an Exhibition in other state where we do not have branch office – Do we need to take registration as Casual Taxable Person or regular registration?
Further, In case of Casual Taxable person, the estimated liability is required to be paid in advance and the registration is valid for 90 days only, which can be extended with the approval.
Normally an Exhibition is planned more than a year in advance and its very difficult to ascertain the liability in such advance period, moreover we start

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

GEMS & JEWELLERY INDUSTRY UNDER GST REGIME (PART-1)
By: – Dr. Sanjiv Agarwal
Goods and Services Tax – GST
Dated:- 21-1-2017

Prologue
The Gems and Jewellery sector play a significant role in the Indian economy, contributing to over 5 % of the country's GDP. As one of the fastest growing sectors, it is highly export- oriented and labour intensive.
Based on its potential for growth and value addition, the Government of India has declared the Gems and Jewellery sector as one of the focus area for export promotion. India is considered to be the hub of the global jewellery market because of its low costs and availability of high-skilled labour. The industry generated US$ 38.6 billion of revenue from exports in 2015-16, making it the second largest exporter after petro-chemicals. (Source: www.ibef.org)
Currently, gems and jewellery sector is exposed to various indirect taxes, viz. Excise Duty, Service Tax and VAT/Sales Tax. The current indirect tax regime in India provide

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

on value without Cenvat credit on inputs and capital goods. (However, credit on input services is eligible), or
* 12.5% with Cenvat credit of inputs, input services, and capital goods.
VAT is levied at the rate of 1% or different rates (may vary from State to State) for sale in India.
Under the model GST law, lowest approved GST rate is proposed to be 5%. If gems and jewellery item will be classified under the lowest tax slab, then this will become a major concern for this sector paying excise duty @1%. As a result they may have to pay CGST/SGST @5% instead of what they are paying in existing taxation laws, i.e., 2% (1+1). This shall increase the prices of gems and jewellery. However, this will be subject to availing Cenvat Credit of tax paid on inputs.
For assessees who are paying excise duty @12.5%, if gems and jewellery is taxed @5%, then this will be a relief for them. However, classification of goods and/ or services is still pending for taxability of GST rate. Therefore, mor

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

ased on the value of clearance) is presently available if the value of manufactured goods (on own or through job worker) cleared domestically has not crossed ₹ 1.5 crores. (all goods manufactured including silver jewellery).
Under GST regime, the threshold limit of ₹ 10/20 lakhs is provided for payment of GST. Since, under GST regime limit of threshold exemption will be reduced to ₹ 10/20 lakhs, it will adversely affect the manufacturers.
Shift in Taxable base from Service/Manufacturing/Sale to Supply
In service tax law, rendering of service is a taxable event for levy of Service Tax. Similarly, in the case of central excise, manufacturing is a taxable event for levy of central excise duty and sale is a taxable event under VAT laws for levy of VAT/Sales Tax. However, in GST regime, 'Supply' will be considered as a taxable event under GST.
Supply shall include:
* all forms of supply of goods and/or services made or agreed to be made for a consideration by a per

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

he importation of services from a related person or any of his distinct establishment outside India without consideration, then such supply would also be covered under supply.
Time of Supply of Goods and/or Services
CGST/SGST/IGST shall be payable at the earliest of the following dates, namely:
* the date of issue of invoice by the supplier or the last date on which he is required to issue the invoice with respect to the supply; or
* the date on which the supplier receives the payment with respect to the supply.
Valuation
Transaction value shall be considered for payment of tax, with various inclusions prescribed in the valuation provisions/ rules.
Certain inclusions in the valuation are as follows:
* Any taxes, duties, cesses, fees and charges levied under any statute (like Basic Custom Duty and Anti-dumping Duty), other than SGST /CGST/IGST.
* Any amount that the supplier is liable to pay in relation to such supply but which has been incurred by the recipient of the supp

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

Definition of Input Service Distributor and Money
By: – Pradeep Jain
Goods and Services Tax – GST
Dated:- 21-1-2017

DAILY DOSE OF GST UPDATE BY CA PRADEEP JAIN
Definition of Input Service Distributor and Money
Taking further to our discussion, we are continuing our discussion the definitions given under Section 2 of revised GST law and comparing the same with old model GST law to know the changes made in revised law:-
2(54) Input Service Distributor: The new definition reads as follows:
Input service distributor means an office of the supplier of goods and/or services which receives tax invoices issued under section 28 towards receipt of input services and issues a prescribed document for the purposes of distributing th

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

ice will be applicable on the ISD as well. This would mean that not only the ISD had to file returns prescribed for supplier of services; he would have to also comply with the provisions meant for supplier of services. Thus the explanation has been deleted to avoid such interpretation by the department.
2(68) Money: the new definition reads as follows:
Money means Indian legal tender or any foreign currency, cheque, promissory note, bill of exchange, letter of credit, draft, pay order, traveler cheque, money order, postal or electronic remittance or any other instrument recognized by the Reserve Bank of India when used as consideration to settle an obligation or exchange with Indian legal tender of another denomination but shall not inclu

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

Supply and Place of Supply of Goods and Services in IGST Law
By: – Sanjeev Singhal
Goods and Services Tax – GST
Dated:- 20-1-2017

Supply is wider term used in GST law as the GST is based on Supply only. Now the question arises what is supply. Supply is transfer of goods and services on which GST will be imposed. Supply has been mainly defined in Section 3 of GST law subject to Schedule- I to IV. Supply has been further elaborated in IGST law whether the supply is interstate supply or Intra-State supply. This is important because if the supply is Intra- State,then CGST and SGST will be attracted otherwise if the supplly is Inter State then IGST will be levied. To understand whether the transaction is Inter State or Intra-State or Import or Export, it is important to understand the provision of Place of Supply which has been narrated in Section- 3 to 4 and 7 to 10 of the IGST Law.
Supply has been defined in Section 2[26] of IGST Law as follows;
“Supply” shall have the

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

of goods brought into India in the course of import till they cross the custom frontier of India.
* Intra State supply of services means any supply of services where the location of supplier and place of supply is in the same State but does not include supply to or by SEZ Developer or SEZ unit.
Place of Supply of Goods other than import and export [ Section-7 ]
Situation
Place of Supply
1.Movement of goods by supplier or recipient.
Where the movement of goods terminate for delivery to recipient.
2. where the goods are delivered to recipient or any person on the direction of third person by way of transfer of title or otherwise, it shall be deemed that third person has received the goods
shall be principal place of business of such person
3. where there is no movement of goods either by supplier or recipient
Location of such goods at the time of delivery to recipient
4. where goods are assembled or installed at site
Shall be where the goods are assembled or installed
5

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

engineers, estate agent, grant of right to use immovable property for carrying out or co-ordination of construction work
b] lodging accommodation by hotel, inn, guest house, home stay, club or campsite, house boat or other vessel
c] accommodation in immovable property for marriage or reception or matter related therewith , official, social , cultural , religious or business function including service for such functions.
d] ancillary to above services in a, b and c
Location of Immovable property, boat or vessel
If immovable property, boat or vessel is located outside India then location of the recipient.
If the services are provided in more than one State, proportion of service provided in each State.
4. restaurant and catering service, personal grooming , fitness, beauty treatment, health services including cosmetic and plastic surgery
Where the services are actually performed
5. training and performance appraisal
Location of registered person.
Location where the service are

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

Return journey shall be treated as separate journey
10. services on board a conveyance such as vessel, aircraft, train or motor vehicle
First schedule departure point of the conveyance
11.telecommunication including data transfer, broadcasting, cable and DTH television services
a] fixed line, leased circuit , internet lease circuit, cable or dish antenna-
b] Mobile connection for telecommunication, internet on post paid basis-
c] Mobile connection for telecommunication, internet and DTH on prepaid basis-
i] through selling agent or reseller or distributor of SIM or recharge voucher
ii] by any person to the final subscriber
d] any other case other than b and c above
Where it is installed
Billing Address
Address of seller , reseller or distributor as per the record of supplier
Where prepayment is received or voucher is sold
Address of recipient as per the record of supplier
Where the address of the recipient is not known , location of supplier.
If prepaid service or rec

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

rvices to the supplier of services
Where services are provided from remote location by way of electronic means
b] service supplied to individual , represented either as recipient of service or person acting on behalf of recipient which required the physical presence of receiver.
Location where the services are performed.
Location where the Goods are situated.
This clause shall not apply in services supplied in respect of goods temporarily imported in to India and are exported after repair.
Location where the service are performed
3. services in relation to immovable property including services in this regard by expert and estate agent, supply of hotel accommodation by hotel, inn, guest house, home stay, club or campsite, grant of right to use immovable property, services for carrying out or coordination of construction work, including Architect or interior decorator.
Location of Immovable property.
4. admission to or organizing of a cultural, artistic, sporting ,scientific, e

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

ircraft, train or motor vehicle
First schedule departure point of the conveyance
11.a] service of ” online information and Database access or retrieval ”
b] for the purpose of this sub section, person receiving such services shall be deemed to be located in taxable territory, if following two condition are being satisfy
i]location of address presented by the recipient via internet
ii] payment settle by recipient by any card has been issued in taxable territory
iii]billing address of recipient of service is in taxable territory
iv] internet address protocol of the device used by recipient is in taxable territory
v] the bank of recipient of service is in taxable territory
vi] country code of SIM used by recipient of service is in taxable territory
vii]location of the fixed land line use by recipient is in taxable territory
Location of recipient of services
Disclaimer :
The contents of this article are solely for information and knowledge and does not constitute any profes

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

e service is provided. And supply of service made to any other person other than registered person shall be
* The location of the recipient where the address on record exist and
* The location of the supplier of services in other cases.
Question 1. If the advertiser is located in other state and not registered in Maharashtra which tax will be applicable (a) IGST or (b) SGST & CGST
2. We organise exhibitions in different states. Currently we have centralised registration of Services tax having principle place of business in Mumbai.
Question 1. If the Exhibition is organised in Mumbai where we will be registered under GST, Exhibitors participating from other states which are not registered in Maharashtra, which Tax will be applicable (a) IGST or (b) SGST & CGST.
2.If we organise an Exhibition in other state where we have branch office. Do we need to take registration in that state?
3. If we organise an Exhibition in other state where we do not have branch office – Do we need t

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

'Bill to – Ship to' Model – IGST Act – Version 2 dated 25 November 2016
By: – Ramnarayan Balakrishnan
Goods and Services Tax – GST
Dated:- 20-1-2017

Chapter IV, Section 7(3) of the draft IGST Act reads as below (verbatim):
"Where the goods are delivered by the supplier to a recipient or any other person, on the direction of a third person, whether acting as an agent or otherwise, before or during movement of goods, either by way of transfer of documents of title to the goods or otherwise, it shall be deemed that the said third person has received the goods and the place of supply of such goods shall be the principal place of business of such person."
While the First Leg of the Transaction is reasonably clear, the

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

Act, is located in the same state as the supplier but issues instructions for delivery of the goods on inter-state basis (which ideally should trigger IGST), then, regardless of the actual movement of goods, his location would be deemed to be the place of supply and result in triggering of CGST + SGST.
The aspects discussed above are only in relation to the first leg of the transaction, i.e. between the Supplier of goods and the 'third person', whether located within or outside the state.
B. The Second Leg of the Transaction
The next point to reckon with would be the nature of the second leg of the transaction, i.e. between the 'third person' and the ultimate customer who receives the goods.
Whether a transaction triggers IGST or CGST+

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

n. At the time of effecting the second leg of the sale transaction,
* The goods might have reached the ultimate customer. In which case, the place of supply would be the destination of the ultimate customer.
* Going back to Section 7(3), in this transaction of 'bill to – ship to', it is deemed that the 'third person' is the recipient of the goods, even though the actual recipient is the ultimate customer. This concept could further complicate the process of determining the actual place of supply.
Correspondingly, there would be implications from the input credit perspective also.
Thoughts on the above are most welcome.
Reply By Somil Bhansali as =
Sir as per my interpretation the Second leg of Transaction will be as per Section 7(

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

GST COUNCIL
By: – DR.MARIAPPAN GOVINDARAJAN
Goods and Services Tax – GST
Dated:- 20-1-2017

Section 12 of the Constitution (One hundred and first Amendment) Act, 2016 proposes to insert a new Article 279A after Article 279 which deals with Goods and Service Tax Council. Section 12 came into force with effect from 12.09.2016, vide Notification No. S.O. No. 2915(E), dated 10.09.2016.
Constitution of GST council
Article 279A (1) provides that the President shall, within 60 days from the date of the commencement of the Act, by order, constitute a Council to be called the Goods and Services Tax Council. Article 279A(2) provides that the GST council shall consist of the following members-
* Union Finance Minister – Chairperson;
* The Union Minister of State in charge of Revenue or Finance- Member;
* The Minister in charge of Finance or Taxation or any other Minister nominated by each State Government – Members.
The members shall, as soon as may be, choose one amongst

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

expenses of the GST Council Secretariat, the entire cost for which shall be borne by the Central Government. The GST Council Secretariat shall be manned by officers taken on deputation from both the Central and State Governments.
Vide Notification No.SO 2957(E), dated 15.09.2016 the President of India constituted the GST Council containing the above members in the council.
The GST Council is headed by Union Finance Minister Arun Jaitley and includes representatives of all the 29 states and 2 union territories.
Functions of GST Council
Article 279A (4) provides that GST council shall make recommendations to the Union and the States on-
* the taxes, cesses and surcharges levied by the Union, the States and the local bodies which may be submitted in the goods and services tax;
* the goods and services that may be subject to, or exempted from the goods and services tax;
* model Goods and Services Tax Laws, principal of levy, apportionment of Goods and Services Tax levied on appli

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

ance of its functions.
Proceedings of Council
Every decision of the Council shall be taken at a meeting by a majority of not less than three fourths of the weighted votes of the members present and voting in accordance with the following principles-
* the vote of the Central Government shall have a weightage of one third of the total votes cast; and
* the votes of all the State Governments taken together shall have a weightage of two thirds of the total votes cast in that meeting.
50% of the total number of Members of the Council shall constitute the quorum of the meeting.
No act or proceedings of the Council shall be invalid merely by reason of-
* any vacancy in, or in any defect in, the constitution of the Council; or
* any defect in the appointment of a person as a Member of the Council; or
* any procedural irregularity of the Council not affecting the merits of the case.
Adjudication of dispute
The Council shall establish a mechanism to adjudicate any dispute-
* b

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

of the council. As a result, minutes of meeting held on September 23 were not approved by the council in its meeting. Five rules framed for the purpose of GST have been taken up and approved by the Council.
Third GST council meeting
The GST Council, in the meeting held on 03.11.2016 finalized the GST tax rate structure. The Council has opted for a four tier rate structure of 5%, 12%, 18% and 28%. The essential items like food grains will have a zero rate. According to the decision, 150 essential items in the consumer price index basket will attract zero tax.
5% tax – For mass consumption goods like butter, ghee;
12% tax – It is one of the standard rate;
18% tax – It is another standard rate;
28% tax – Luxury goods will attract this tax;
0% tax – 50% of Consumer Price Index basket items, food grains like rice and wheat, spices
The above tax rate must be approved by the Parliament in the Winter Session which is going to be held on 19.11.2016 but not able to get approved. A commi

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

the issue of assessee jurisdiction continued. The Council is also yet to approve the drafts of supporting legislations such as the Central GST and State GST, Integrated GST, and a law detailing compensation to states for loss of revenue in the first five years of the roll-out.
Sixth meeting of GST council
The 6th meeting was conducted in the shadow of demonetization, whose fallout has put a serious question mark on implementing GST by 01.04.2017, the target fixed by the Central Government. This two day meet focused on finalizing three legislations viz., Central GST, State GST and compensation bill but the same has not been achieved except up to Sections 99 of Model GST law have been discussed
Seventh meeting of GST council
Primary draft of CGST and SGST bills were cleared;
Redrafting of one clause in the draft compensation bill. Compensation is to be paid to States on a bi-monthly basis instead of on quarterly basis as in the draft bill.
Eighth meeting of GST Council
he deadlo

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

9th GST Council inks breakthrough on dual control over tax payers, rollout deferred to July 1, 2017
By: – Bimal jain
Goods and Services Tax – GST
Dated:- 19-1-2017

Dear Professional Colleague,
9th GST Council inks breakthrough on dual control over tax payers, rollout deferred to July 1, 2017
In an attempt to try and bridge differences on the contentious issues such as administrative control over taxpayers under the Goods and Services Tax (“GST”), the all-powerful GST Council headed by the Hon'ble Finance Minister, Mr. Arun Jaitley met for the ninth time in a row to clear all gathered clouds over the GST and brightening its prospects of implementation soon.
With the conclusion of the 9th GST Council meet on January 16, 20

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

assess and administer 90% of the tax payers with less than ₹ 1.5 crore annual turnover while the remaining would be controlled by the Centre.
* For tax payers with more than ₹ 1.5 crore annual turnover, the States and the Centre will control and administer them in a 50:50 ratio.
However, intelligence based enforcement power will be with both the Centre and States.
Further, the Hon'ble Finance Minister said that each assessee would be assessed only by one authority. He also said that "You won't have to jump from authority to authority, that's the advantage of GST ……… Once you evolve numerically a lot more will come from state to the centre, because the percentage is 50:50 in higher category and 90:10 in lo

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

, the States will also be cross empowered:
The Centre, while iterating that the power to levy and collect the Integrated Goods and Services Tax (“IGST”) will be vested with it solely, agreed to make a special provision in law by which the States will also be cross empowered.
* Contentious issues between the conflicting States to be taken up by the Centre
The Hon'ble Finance Minister said that in exercise of IGST, where there are contentious issues between conflicting States with regard to place of supply etc., then those assessment would take place by the Centre.
As the discussions made in the 9th GST Council meet would have an impact on the IGST Law, Compensation Law and correspondingly, on the Central Goods and Services Tax/State Goo

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

Registration of Service Tax under GST
Query (Issue) Started By: – Partha Sarkar Dated:- 18-1-2017 Last Reply Date:- 23-1-2017 Goods and Services Tax – GST
Got 6 Replies
GST
We have a manufactured unit I Odisha sometimes we have to delivered service (other than supply) in different states. Please guide me the registration of service tax to be taken for different sates where service to be delivered.
Reply By MARIAPPAN GOVINDARAJAN:
The Reply:
The service tax is subsumed into GST. Therefore there is no separate registration for service tax. If the service provided is made more than one State you have to get registration for each State. If you are already registered with the Department you have to migrate to GST. Otherwise you ha

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

GST – DEFINITION OF AGRICULTURE
By: – Pradeep Jain
Goods and Services Tax – GST
Dated:- 18-1-2017

DAILY DOSE OF GST UPDATE BY CA PRADEEP JAIN
DEFINITION OF AGRICULTURE:
As the GST law has been revised, it is pertinent to note down what all issues still remain un-tackled or untouched. Also certain provisions are there which are yet again drafted in such a way that they would attract litigation. Here we are discussing two such provisions:
* Starting with the definition of agriculture, its scope has been restricted largely in the GST regime. The proposed definition is reproduced here below:
2(7) “agriculture" with all its grammatical variations and cognate expressions, includes floriculture, horticulture, sericulture

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

RONSNALLY.
The definition is further given under Section 2(106) about cultivate land personally which is as under:-
(106) “to cultivate personally” means to carry on any agricultural operation on one's own account- (a) by one's own labour, or (b) by the labour of one's family, or (c) by servants on wages payable in cash or kind [(but not in crop share)] or by hired labour under one's personal supervision or the personal supervision of any member of one's family;
Explanation 1. – A widow or a minor or a person who is subject to any physical or mental disability or is a serving member of the armed forces of the Union, shall be deemed to cultivate land personally if it is cultivated by her or his servants or by hired labour. Explanation

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

very prone to litigation is the definition of Composite Supply appearing in Section 2(27), Mixed Supplies in Section 2(66) and Principle supply in 2(78). The definitions are reproduced here below for ready reference:
“composite supply” means a supply made by a taxable person to a recipient comprising two or more supplies of goods or services, or any combination thereof, which are naturally bundled and supplied in conjunction with each other in the ordinary course of business, one of which is a principal supply;
www.capradeepjain.com
Reply By Ganeshan Kalyani as =
Nice article.
Dated: 18-1-2017
Reply By KASTURI SETHI as =
Excellent article, Sir. All doubts cleared. The new definition of 'Agriculture' under GST specifically

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

Process of Migration of Central Excise and Service Tax assessees to GST regime
Public Notice No. 01/2017 Dated:- 18-1-2017 Trade Notice
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: 18.01.2017
Public Notice No. 01/2017
Sub: – Process of Migration of Central Excise and Service Tax assessees to GST regime- Reg.
As per Section 166 of the draft CGST Act read with Rule 14 of the draft GST Registration Rules, every Central Excise / Service Tax assessee having valid PAN shall be granted registration under GST regime on a provisional basis.
2. To simplify the process of migration, step wise procedures have been prescrib

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

01.2017
NODAL OFFICERS OF MANGALURU COMMISSIONERATE
SI
Division Name / Location
No
Name of Officer
(Ms. / Mr.)
Designation
Phone No.
Email
i
!!!
Central Excise Division I,
Attavar
ii Central Excise Division II,
iv
V
Attavar
Service Tax Division,
Punja Building
Central Excise & Service
Tax Udupi Division, Udupi
Central Excise & Service
Tax Headquarters
K Nirmala
G Govindan
Potti
Superintendent
(0824) 2427218
accxmngdn1@nic.in
Ashonik
Inspector
(0824) 2427218
PT Rai
Superintendent
(0824) 2421779
accxmngdn2@nic.in
Shobha Peres Bhatt Superintendent
(0824) 2454669
accxmngdnst@nic.in
Rajesh Pawar
Ashish Verma
Superintendent
Inspector
Superintendent
(0820) 2528123
accxmngudp@nic.in
(0820) 2528123
(08

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =