FLASH NEWS

GST Council - Simplified return format to contain sales invoices and provisional credit details; not to be made available to Composition dealers

GST Council approves simplified GST Return format; to take six months; GSTR-3B to continue till then + decides to set up GoM on issue of Sugar Cess & measures to raise funds on contingencies + to set up GoM to crystallise views on proposal to incentivise digital payments + also decides to acquire 100% shares of GSTN; Equity to be divided between Centre & States

 

TOP NEWS

GST Council gives nod to New GST Return; takeover of GSTN by Govts; GoMs for sugar cess & incentive for digital payments

GST mop-up jumps to Rs 1.03 lakh crore in March

GST - Delhi is happy with collection figures

GST Council to meet on May 4; 2.5 Cr e-Way Bills generated in 26 days

GST - Govt collects Rs 7.4 lakh crore including 62000 Cr Cess in 8 months

GST - Foreign missions complain; Govt threatens action if UIN not recorded in invoices

GST team of CGST & SGST officials bag PM's Award on Civil Services Day

1.3 crore e-Way Bills generated till yesterday; Six more States going for intra-state option

GST Council proposes simplified model for filing returns

GSTR-4: Govt clarifies manner for filing quarterly return under composition scheme

Inter-State trade - Over 91 lakh e-Way Bills generated in 12 days

CBIC prescribes uniform procedure for recovery of old arrears in GST regime

e-Way Bill - CBIC lays down detailed procedure for inspection, detention & release of goods

GST - Severed rubber trees are 'goods' - Tax on rubber wood is 18% under HSN 4403: AAR

 

CGST RULES NOTIFICATION

cgst_rules_not_21

Notification seeks to make amendments (Fourth Amendment) to the CGST Rules, 2017

CGST CIRCULAR

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Issue related to taxability of 'tenancy rights' under GST

 

CASE LAWS

NATIONAL ANTI-PROFITEERING AUTHORITY (GST)

Dinesh Mohan Bhardwaj Vs Vrandavaneshwree Automotive Pvt Ltd

GST - Benefit of reduction in the tax rate was passed on to the applicant by way of reduction in the price of the car – benefit of Rs. 10,550/- on account of reduction of tax by about 2% viz. from 31.254% (pre GST) to 29% (post GST) has already been passed on to the applicant and the amount of Rs. 10,550/- is inclusive of the ITC - Therefore, no additional benefit on account of ITC is required to be paid by the respondent, authorised dealer of M/s Honda Car India Ltd. - no case of profiteering made out - respondent has not contravened the provisions of Section 171 of the CGST Act, 2017 – Application made under rule 128 of CGST Rules, 2017 dismissed: National Anti-Profiteering Authority [para 15 to 18] - Application dismissed: NAPA

AUTHORITY FOR ADVANCE RULING (GST)

2018-TIOL-10-AAR-GST

National Plasticindustries Ltd

GST - Classification - PVC floor mat is correctly classifiable under Customs Tariff Heading 3918 – Product is described as being a PVC Carpet Mat and, therefore, the impugned product would fall in the Entry no. 104A of Schedule III and attract tax at the rate of 18% (9% each of CGST & SGST): AAR

2018-TIOL-09-AAR-GST

Kansai Nerolac Paints Ltd

Carried forward KKC in Electronic Credit Ledger cannot be considered as admissible Input credit - AAR Observations by AAR: + Applicant seeks advance ruling on the question – ‘Whether accumulated credit by way of KrishiKalyanCess (KKC) as appearing in the Service Tax return of Input Service Distributor (ISD) on 30.06.2017 which is carried forward in the Electronic Credit ledger maintained by the company under the CGST Act, 2017, will be considered as admissible Input Tax credit?' + By express provisions in rule 3 of CCR, 2004 as amended by notification 28/2016-CE(NT) dated 26.05.2016, it was made clear that KKC would be utilized towards payment of KKC only and that the list of items in respect of which CENVAT credit is available would not be utilized for payment of KKC. + Under GST law, there is no levy of KKC. + In Cellular Operators Association of India, Delhi High Court - 2018-TIOL-310-HC-DEL-ST while dismissing the petition held that it would be improper to treat the two Cesses viz. Education Cess and Secondary and Higher Education Cess as duty of excise or service tax and, therefore, could not be allowed to be cross-utilised against the excise duty or service tax; that what the petitioner seeks is an amendment of the Scheme to allow them to take cross utilization of unutilized EC and SHE (upon the two cesses being withdrawn) towards excise duty and service tax, though this was not the position even earlier. + In view of the above, KKC cannot be treated as excise duty or service tax inasmuch as the CENVAT Credit referred to in sub-section (1) of Section 140 of the CGST Act, 2017 would not include the credit in respect of KKC. + FAQ brought out by the Board explaining SBC (Swachh Bharat Cess) apply with equal force to KKC and in fact, under the GST Act too, the FAQ issued by CBEC clarifies at point 112 that ITC of Swachh Bharat Cess or KrishiKalyanCess cannot be carried forward under GST. + Therefore, the accumulated credit by way of KrishiKalyanCess (KKC) as appearing in the Service Tax return of Input Service Distributor (ISD) on 30 th June 2017 and which has been carried forward in the Electronic Credit Ledger maintained by the Company will not be considered as admissible Input credit. ++ Held accordingly.

2018-TIOL-08-AAR-GST + Story

Rod Retail Pvt Ltd

GST - Goods cannot be called to be exported, merely on crossing the Customs Frontiers of India - supply of goods to the International passengers going abroad by the applicant from their retail outlet situated in the Security Hold Area of the Terminal-3 of IGI Airport may be taking place beyond Customs Frontiers of India as defined under Section 2(4) of the IGST Act, 2017 - However, the said outlet is not outside India, as claimed by the applicant but the same is within the territory of India as defined under Section 2(56) of the CGST Act, 2017 and Section 2(27) of the Customs Act, 1962 and hence the applicant is not taking goods out of India and hence their supply cannot be called “export” under Section 2(5) of the IGST Act, 2017 or “zero rated supply” under Section 2(23) and Section 16(1) of the IGST Act, 2017 - applicant is required to pay GST at the applicable rates: AAR [para 28 to 36]  

2018-TIOL-07-AAR-GST + Story

Joint Plant Committee

CGST - Applicant, a non-profit organisation is engaged exclusively in supplying goods and services that ar

e wholly exempt from tax, and, therefore, not liable to be registered under the GST Act if he is not otherwise liable to pay tax under reverse charge under section 9(3) of the GST Act: AAR [para 9, 12, 13]

CGST - Main source of the Applicant's income is the interest consideration received by way of interest on services like extending deposits, loans or advances - This service, also, is wholly exempt under Serial no. 27 of the Exemption Notifications for Services (Tariff head: 9971): AAR [para 9]

2018-TIOL-06-AAR-GST + Story

Global Reach Education Services Pvt Ltd

IGST – Applicant promoting courses of foreign universities among prospective students and receiving consideration in the form of Commission, based on performance in recruiting students, in convertible foreign exchange - Applicant, therefore, represents the University in the territory of India and acts as its recruitment agent - Whatever services the applicant provisions are provided only as a representative of the University and not as an independent service provider - Being an intermediary service provider, the place of the Applicant's supply shall be determined under section 13(8)(b) of the IGST Act and not under section 13(2) of the IGST Act - The place of supply under the above legal framework is the territory of India - As the condition under section 2(6)(iii) of the IGST Act is not satisfied, the Applicant's service to the foreign universities does not qualify as “ Export of Services”, and is, therefore, taxable under the GST Act: AAR [para 12 to 19]

2018-TIOL-05-AAR-GST

Switching Avo Electro Power Ltd

GST - Applicant, stated to be a supplier of power solutions, including UPS, servo stabiliser, batteries etc. wants a ruling on the classification of the supply when it supplies UPS along with the battery - More specifically, they want a ruling on whether such supplies can be treated as Composite Supply within the meaning of Section 2(30) of the CGST Act, 2017. Held: A standalone UPS and a battery can be separately supplied in retail set up - A person can purchase a standalone UPS and a battery from different vendors - applicant himself admits that he supplies the battery and UPS as separate machines as well as UPS with battery - It is obvious that the UPS and the battery have separate commercial values as goods and should be taxed under the respective tariff heads when supplied separately - If a combination of goods that does not amount to a composite supply is being offered at a single price, such supplies are to be treated as mixed supplies - Supply of UPS and Battery is to be considered as Mixed Supply within the meaning of Section 2(74) of the GST Act, as they are supplied under a single contract at a combined single price: AAR [para 10, 13]

Akansha Hair & Skin Care Herbal Unit Pvt Ltd

GST - Twin test method - Medicaments are not defined under the GST Act or in the First Schedule of the Customs Tariff Act, 1975 with which the GST Act has been aligned for the purpose of classification - The methods settled by the apex court for determining whether a product is to be classified as medicaments for fixing the tariff should be followed as the only lawful course - The Apex Court has settled for a twin test method - It means how the product is understood in common parlance and whether the product has been manufactured using ingredients and formula provided in the authoritative textbooks of Ayurveda are the two parameters for such classification - Skin Care preparations viz. Rupam (Pimple Pack) and Pailab (Anti-Crack Cream) are offered for treatment or prevention of specific skin disorders and are, therefore, classifiable as Medicament under heading 3004 of the CTA, 1975 - Preparations listed as Swarnajyoti, Sunayana and Tarumitra-60 have not yet come into existence, and, therefore, no rulings are pronounced on their classification - The remaining products mentioned in the list submitted by the applicant are not offered primarily as medicaments and, therefore, not to be included under heading 3004: AAR [para 20 to 23]

N C Varghese

GST - Applicant is engaged in the purchase and cutting and removal of rubber trees from the plantations of certain PSUs owned by the Government of Kerala and also from private individuals in Kerala - State Farming Corporation is demanding 18% on live rubber trees – Applicant before AAR seeking clarification on classification and rate of tax. Held: As per the definition of goods in Section 2(52) of CGST Act, 2017 ,  ''goods" means every kind of movable property other than money and securities but includes actionable claim, growing crops, grass and things attached to or forming part of the land which are agreed to be severed before supply or under a contract of supply -  Rubber trees are agreed to be severed before supply and hence, comes under the definition of 'goods' – since standing rubber trees no longer remain as such, they are to be treated ad ‘wood in rough form' – There is no differentiation between Soft wood and hardwood in GST - Rate of tax on rubber wood in the aforesaid transaction is 18% under the HSN 4403: AAR [para 7, 8, 9]

Synthite industries Ltd

GST - Goods are liable to IGST when they are imported into India and the IGST is payable at the time of importation of goods into India: AAR [para 13] GST - Integrated tax on goods imported into India shall be levied and collected at the point when duties of customs are levied on the said goods under Section 12 of the Customs Act, 1962 i.e. on the date determined as per provisions of Section 15 of the Customs Act, 1962: AAR [para 10] GST - Applicant is neither liable to GST on the sale of goods procured from China and directly supplied to USA nor on the sale of goods stored in the warehouse in Netherlands, after being procured from China, to customers, in and around Netherlands, as the goods are not imported into India at any point: AAR [para 13]

Caltech Polymers Pvt Ltd

GST - Recovery of food expenses from the employees for the canteen services provided by company is an 'outward supply', hence taxable: AAR [para 12] GST - Canteen service to employees - There is no similar exemption (notification 25/2012-ST) as existing under the Finance Act, 1994 prevailing under the GST laws: AAR [para 8] GST – Upon a plain reading of the definition of "business" given in Section 2(17), clauses (a) and (b) of the CGST Act, it could be safely concluded that the supply of food by the applicant to its employees would definitely come under clause (b) of Section 2(17) as a transaction incidental or ancillary to the main business: AAR [para 9] GST - Even though there is no profit as claimed by the applicant on the supply of food to its employees, there is "supply" as provided in Section 7(1)(a) of the GST Act, 2017. The applicant would definitely come under the definition of "Supplier" as provided in sub-section (105) of Section 2 of the GST Act, 2017: AAR [para 10] GST - Since the applicant recovers the cost of food from its employees, there is consideration as defined in Section 2(31) of the GST Act, 2017: AAR [para 11] Ruling:

+ Recovery of food expenses from the employees for the canteen services provided by company would come under the definition of 'outward supply' as defined in Section 2(83) of the Act, 2017, and therefore, taxable as a supply of service under GST. [para 12]

 

E-way Bill Notifications

HIMACHAL PRADESH

Himachal Pradesh Notification for Eway dt 17-04-2018

MAHARASHTRA

GST Notification for Intra-state e-Way Bills in Maharashtra No 15B_2018-State Tax dated April 18 2018

GUJARAT

Gujarat e way bill Notification for Intra State Movement

 

PRESS RELEASE

Press Release

Change in the shareholding pattern of GSTN

 

ARTICLES

Anomaly in explanation to Rule 43(1)(c) of CGST Rules, 2017

When Domestic Tax Laws Reach Beyond Customs Frontiers

Ocean freight: Fears of double taxation are misplaced

Applicability of GST on high sea sale

Sunset clause for tax benefits for units in SEZ, except IFSC

Cenvat Credit on GTA outward - SC applies the brake

Export in new tax regime - Dichotomies & glitches in procedure

Import of books made costlier

GST - Sugar CESS - A Pause before Decision may serve better!

NDA Govt plays politically safe; shuns major fiscal reforms

Doctrine of Umbilical Cord puts onus on Executive to protect Supreme Court for own survival! !