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Cus - Export of non-basmati rice - Notification 20/2023 insofar as it denies the benefit of the transitional arrangement as contained in para-1.05 of the FTP 2023, is bad in law: HCCus - Refund of SAD - 102/2007-Cus - Areca Nut and Supari are one and the same - Objections with regard to name, nature and status of importer or buyers or the end use of goods purchased by them etc. are extraneous: HCCX - Interest on Refund - Since wrong order annexed by petitioner in paper book, Bench is unable to proceed further - Petition is dismissed with liberty to file a fresh one: HCGST - No E-way bill - When petitioner imports machinery and after Customs clearance, transports same to his own factory, it cannot be said that such a transportation would fall within the definition of term 'supply' - Penalty imposable under second limb of s.129(1)(a): HCGST - Fix responsibility on officers who allowed BG to lapse - Petitioner not justified in not renewing BG - Cost of Rs.15 lacs imposed, to be paid to PM Cares Fund: HCGST - Since the parties agree that petition can be disposed of on the basis of records available before Appellate Authority, petitioner is directed to enclose all documents filed before Appellate Authority in a compilation, in form of a paper book: HCWrong RoadST - Whether any service is used for personal consumption or not is certainly question of fact and being question of fact, no substantial question of law arises: HCGovt proposes to amend Geographical Indication of Goods Rules; Draft issued for feedbackST - If what has been paid as tax is without authority of law, Revenue should refund the same - Denial of credit would result in the whole exercise being tax neutral: HCWarehousing Authority notifies several agri goods to be stored in only registered warehousesST - Even if the petitioner may have a case on merits, it is best left to be decided by the Appellate Authority under the hierarchy prescribed under the FA, 1994: HCUS FDA okays Eli Lilly Alzheimer’s drugGST - Petitioner challenges jurisdiction of assessing officer - Petitioner is entitled to file an appeal u/s 107 by availing an alternate efficacious remedy: HCFive from Telangana killed in car accident on Pune-Solapur HighwayGST - Existence of an alternative remedy is a material consideration but not a bar to the exercise of jurisdiction: HCHush money case against Donald Trump - Sentencing deferred to Sept 18GST - It is open to a trader to take goods by whichever route he opts, unless the law otherwise requires, destination point being intact: HCDeadly hurricane Beryl smashes properties in JamaicaGST - Conclusion that taxable person is providing a service to supplier while taking the benefit of a discount by facilitating an increase in the volume of sales of such supplier is ex facie erroneous and contrary to the fundamental tenets of GST law: HCIsrael claims 900 militants killed in Rafah since May monthGST - Order expressly records that personal hearing notice was returned with endorsement 'no such person at address' - Since petitioner has shifted to a new premises, it is just and necessary to provide an opportunity to contest demand: HC116 die in stampede at UP ’Satsang’I-T- Application for revision of order dismissed in limine on grounds of delay; case remanded for re-consideration: HCWe are deepening economic ties with India, says US officialI-T- As per Section 119(2)(b), power to condone applications relate to claims for amount exceeding Rs 50 lakhs are to be considered by CBDT; however it is impermissible for CBDT to pass order on merits: HC8 Dutch engineers build world’s longest bicycle - 180 feet, 11 inchesI-T- Additions framed u/s 68 for unexplained income & u/s 69 for unexplained expenditure not tenable where complete transactional details are furnished & not doubted: HCRailways earns Rs 14798 Crore from Freight loading in June monthI-T- Delay in filing ITR is per se insufficient reason to estimate assessee's profit @15% on turnover, more so where audited financial report is filed in timely manner: ITATMoD inks MoU to set up testing facilities in Unmanned Aerial System in TN Defence Industrial CorridorI-T- For invoking section 69A, assessee should be found to be owner of any money, bullion, jewellery or other valuable article & which is not recorded in the books of account: ITATGovt proposes Guidelines for ethical approach to Coal MiningI-T- TDS credit can be allowed based on AIS, where details pertaining to TDS, advance tax & other payments are reflected in Form 26AS: ITATVaishnaw to inaugurate Global IndiaAI Summit 2024I-T- Lending money with the primary intention of earning interest can be considered a business activity, but nature and manner of lending, as well as the frequency, should be taken into account: ITAT
 
GST to cripple various Training Institutes & Universities

JUNE 13, 2017

By Dinesh K Vohra

INTRODUCTION of GST is going to create a peculiar problem for the class of specialized visiting faculties/ domain specialists (a rare breed) who crisscross India to cater to various educational Institutes and Universities (including Deemed Universities) on regular basis. It is a well-known fact that various Universities, IITs, IIMs, RTIs, Medical Colleges, Engineering and Chemical institutes and other management, technical, scientific and other specialized institutions depend a great deal on visiting faculties from other cities (read now as other states) due to huge shortage of quality faculties at higher level. These faculties cater to 2 types of needs:

1. Students undergoing various educational courses are educated on specialized subjects by visiting faculties.

2. The specialized institute and Universities do conduct various workshops and seminars on diverse subjects for industry. These workshops do provide financial muscles to institutes and Universities to sustain in a market place.

Shortage of regular quality faculties in almost all specialized institutes is a known fact and partly this deficiency get compensated by set of visiting faculties from other cities or states/ or even foreign countries.

For example:

1. An Aerospace Engineering institute will be compelled to invite some aerospace scientists as a visiting faculty

2. Specialized management faculties do cater to various IIMs and other such elite institutes in India on regular basis (for students and workshops both)

3. Most of medical colleges depend on external faculties for their MD/MS courses who come from other cities/states. (health areas exempted under GST but there is no such provision for visiting faculties to these specialized courses (MS/MD) from other states getting exempted) to exempt their fee from GST

4. All specialized Institutes/Universities/Colleges do invite visiting faculties from other cities/states or even from foreign countries to compensate for deficiency in quality faculties. It is a kind of system/trend evolved all over the world. It is this cultures which has enriched world's top colleges, institutes and Universities.

World's top level scientific, management, technical and other such institutes have flourished and became great due to respect given to external faculties which crisscross world. Our own scientists, engineers, technocrats and management specialists crisscross India/world to cater to specialist domains.

Specialist in any educational/skill domain are rare breed. India is already short of high class talent in most domains. In such circumstances it becomes mandatory for specialized talent to travel quite often to other states to cater to their specialized needs. These visiting faculties get fee/honorarium in lieu of services offered by them. Most of these visiting faculties do fall below the slab of earning of Rs 10 Lac per annum.

Under the provisions of Service Tax there was exemption of Rs. 10 Lac which was pan India and catered easily to present set of visiting faculties. However the situation gets drastically changed under regime of GST wherein all these specialist now have to pay GST on the fee/honorarium received by them if they cross boundaries of their states. A large number of these faculties now will be reluctant to travel to other states to cater to specialized needs.

It is going to be huge loss to researchers/ trainees and students due to these provisions because the exemption limit get enhanced to 20 Lacs under GST but the moment one crosses the boundaries of one's state, this limit become redundant and entire sum received gets taxable under GST. Perhaps government and GST council has not taken note of this huge problem which has potential to cripple entire skilling/training/ research/teaching industry in this country. In actuality no teacher/trainer/coach would like to pay GST however they are all willing and paying Income Tax on their fee/honorariums received.

If teachers and trainers get involved in filing GST returns all the time, teaching is going to suffer immensely. It is going to be huge loss to this nation. I personally feel that a very large percentage of visiting faculties in this country would not like to cross the boundary of their states and it is going to cripple set of Universities, Institutions and others.

Here it is pertinent to note that few decisions taken in this regard by the GST Council in the 16th meeting held on 11th of June 2017 have brought some relief. It states that Service Tax exemptions to be continued in GST as approved by the GST Council at S.N. 83 for "Services provided to the Government under any training programme for which total expenditure is borne by the Government."

These provisions cater to needs of trainees/students in government sector training institute wherein 100% expenditure is borne by Government . But it is silent on other set of visiting faculties who crisscross India on regular basis and their number is pretty large.

Government can very well opt for option given below to bolster higher education in this country so that worthy students/trainees are not deprived of quality education/training.

1. Shift GST burden in such cases to Service receivers through RCM mechanism (Reverse Charge Mechanism).

I would urge government/GST Council/ CBEC Board to look into this matter immediately else it is going to be extremely difficult times for industry of higher education/training which is already suffering from huge shortage of specialist faculties in almost all universities and institutes in this country.

(The author is retired Assistant Commissioner, Customs & Central Excise and the views expressed are strictly personal.)

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Also See : TIOL TUBE Videos on GST

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Sub: IGST on faculties from outside states

This is simple. All such trainers are advised not to take registration under GST. All such persons will be unregistered person and the service tax will be required to be paid by the person who has taken the services under reverse charge mechanism.

Posted by cestat cestat
 

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