Analysis of Clarifications issued by the C.B.E. & C.
By: – CASanjay Kumawat
Goods and Services Tax – GST
Dated:- 11-11-2017<\/p>\n
Introduction
\nDue to various recommendations received by the C.B.E. & C from the various sectors of the economy, the C.B.E. & C. has clarified the following issues, are as follows:
\n * Supply of goods on approval basis within the State or in another State
\n\tTaxability of Printing contracts (Issue related to Composite Supply)
\n\tGST applicability on the Superior Kerosene Oil (SKO) retained for the manufacturer of Linear Alkyl Benzene (LAB)
\n\tClassification of unstitched Salwar Suits
\nAccordingly, a discussion on the above matters has been done, as follows:
\n * Supply of goods on approval basis within the State or in another State
\nBackground
\nThe suppliers of jewellery etc. who are registered in one State but may have to visit other States (other than their State of registration) and need to carry the goods (such as jewellery) along for approval. In <\/p>\n
= = = = = = = =<\/p>\n
Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n for the purpose of supply, the supplier shall issue a tax invoice after delivery of goods”. = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n the question, whether such supplies constitute supply of goods or services would be determined on the basis of what constitutes the principal supply. = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n eport will be supplied by the JKPL = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n ffin). = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n","protected":false},"excerpt":{"rendered":" Analysis of Clarifications issued by the C.B.E. & C.By: – CASanjay KumawatGoods and Services Tax – GSTDated:- 11-11-2017 Introduction Due to various recommendations received by the C.B.E. & C from the various sectors of the economy, the C.B.E. & C. has clarified the following issues, are as follows: * Supply of goods on approval basis … Continue reading “Analysis of Clarifications issued by the C.B.E. & C.”<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-8635","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/posts\/8635","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=8635"}],"version-history":[{"count":0,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/posts\/8635\/revisions"}],"wp:attachment":[{"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=8635"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=8635"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=8635"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
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\n\tA combined reading of the above provisions indicates that the goods which are taken for supply on approval basis can be moved from the place of business of the registered supplier to another place within the same State or to a place outside the State on a delivery challan along with the e-way bill wherever applicable and the invoice may be issued at the time of delivery of goods.
\n\tThe person carrying the goods for such supply can carry the invoice book with him so that he can issue the invoice once the supply is fructified.
\n\tAll such supplies, where the supplier carries goods from one State to another and supplies them in a different State, will be inter-state supplies and attract IGST in terms of Section 5 of the Integrated Goods and Services Tax Act, 2017. .
\n\tIt is also clarified that this clarification would be applicable to all goods supplied under similar situations.
\n[ C. B. E. & C C<\/p>\n
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\n Meaning of Principal Supply
\n\tPrincipal supply has been defined in Section 2(90) of the CGST Act, 2017 as supply of goods or services which constitutes the predominant element of a composite supply and to which any other supply forming part of that composite supply is ancillary.
\nSupply of services classified under heading 9989
\n\tIn the case of printing of books, pamphlets, brochures, annual reports, and the like, where only content is supplied by the publisher or the person who owns the usage rights to the intangible inputs while the physical inputs including paper used for printing belong to the printer, supply of printing [of the content supplied by the recipient of supply] is the principal supply and therefore such supplies would constitute supply of service falling under heading 9989 of the scheme of classification of services.
\nSu<\/p>\n
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\n In this case, after printing, supply of printed annual reports by M\/s. Yuvance Printings Private Limited to JKPL shall be considered as 'supply of services' falling under heading 9989 of the scheme of classification of services.
\n As the supply of printing of the content (i.e., annual report) supplied by the recipient of supply (i.e., JKPL) is the principal supply.
\n\tSupply of Goods:
\n M\/s. Arvind Associates has entered into contract with M\/s Yuvance Printings Private Limited for supply of letter heads and envelops with logo of Arvind Associates. Design and Logo details will be supplied by the Arvind Associates.
\n In this case, after printing, supply of letter head and envelope by M\/s. Yuvance Printings Private Limited to Arvind Associates shall be considered as 'supply of goods' under respective headings of Chapter 48 or 49, of the Customs Tariff.
\n As the supply of printing of the content (i.e., logo) supplied by the recipient of supply(i.e., Arvi<\/p>\n
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\nIssues:
\n * Whether in this transaction GST would be levied on SKO sent by IOC for extracting n-paraffin or only on the n-paraffin quantity extracted by the LAB manufactures ?
\n\tWhether the return of remaining Kerosene by LAB manufactures would separately attract GST in such transaction ?
\n Clarifications:
\n * GST will be payable by the refinery (IOC, in our case) on the value of net quantity of superior kerosene oil (SKO) retained (i.e., 15% to 17%) for the manufacture of Linear Alkyl Benzene (LAB).
\n\tThe refinery (IOC) would be liable to pay GST on such returned quantity of SKO, when the same is supplied by it to any other person.
\n\tThe clarification issued in the context of Goods & Service Tax (GST) law only and past issues, if any, will be dealt in accordance with the law prevailing at the material time.
\n[ C. B. E. & C Circular No. 12\/12\/2017-GST, dated 26.10.2017]
\n\tClassification of unstitched Salwar Suits
\nBackground:
\n Before becoming readymade articles or an apparel,<\/p>\n
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