TOP NEWS
GST Panel favours omission of RCM u/s 9(4) & no incentive for digital payments
GST - MD arrested for collecting but not depositing Rs 15 Cr tax
HIGH COURT CASES
2018-TIOL-64-HC-KERALA-GST
Naga Distributors Vs UoI
GST - the petitioner is a dealer who attempted to upload Form GST TRAN - 1 within the time frame stipulted, but was unable to do so due to system error - Consequently, the petitioner was also unable to avail input tax credit - The petitioner seeks directions enabling it to avail input tax credit.
Held - The petitioner is directed to approach the Nodal Officer concerned & make representations therein - The Nodal Officer may look into & facilitate uploading of Form GST TRAN -1 - If uploading of Form GST TRAN-1 is not possible for reasons not attributable to the petitioner, the authority will also enable it to avail input tax credit: HC (Para 1,5,6) - Writ Petition Disposed Of
: KERALA HIGH COURT
2018-TIOL-63-HC-KOL-GST
Sanjay Kumar Bhuwalka Vs UoI
GST - The petitioners were arrested for alleged involvement in generating & selling fake tax invoices to various entities without supply of any goods - They allegedly facilitated irregular availment & utilization of input tax credit by such entities - Investigations revealed that five fake companies were being run by a group of persons, including the petitioners herein - Summons were issued u/s 70 of the CGST Act, 2017 r/w Section 174(2) - It was further revealed that various companies were controlled by them had passed on fake input GST credit to the tune of Rs 27 crores and Rs 12 crores respectively to the recipient entities - Thereafter the Additional Director General had opined that the petitioners committed the offences stipulated u/s 132 sub-section (1)(a), (b) & (c) of the Act - Also that the petitioners evaded payment of tax in excess of Rs 500 lakhs & which is an offence punishable with imprisonment for a term which may be extended to five years and with fine u/s 69 of the CGST Act - Hence the petitioners were arrested - The petitioners herein are aggrived by orders passed by the Addl CJM, turning down their application for bail.
Held - It is settled law that grant of bail is a rule & rejection of bail is an exception - From the date of arrest, the investigation has to be concluded within 60 days as per Section 167(2) of the CrPC - The economic offence having deep rooted conspiracy and involving huge loss of public funds needs to be viewed seriously and considerd as grave offences affecting the economy of the country as a whole and thereby posing a serious threat to the financial health of the country - Grant of bail is subject to consideration of several factors such as the nature of evidence, severity of the punishment, character of the accused, reasonable apprehension of witness tampering & reasonable apprehension of the State - However, considering the evidence collected so far and also the compounding nature of the offence, the petitioners be released on bail - The same is subject to furnishing of bond of Rs 50,00,000/- each & condition to deposit of Rs 39 crores to the Government Exchequer: HC (Para 1-8,32,33) - Bail application allowed : CALCUTTA HIGH COURT
2018-TIOL-62-HC-KERALA-GST
Fashion Marble and Granite Company Pvt Ltd Vs Assistant State Tax Officer
GST - the petitioner is a dealer in Marble & Granite - It supplied a consignment to another dealer - However, the goods were intercepted & detained - SCN was served u/s 129(3) of the CGST Act which was followed by raising of duty demands with imposition of penalty - The petitioner paid the penalty in the GST portal u/s 49 of the Act - When it sought release of the goods, the Department insisted that the payment ought to have been made in cash or by demand draft - Hence the present writ.
Held - the Department's insistence that the petitioner should pay the amount either in cash or through demand draft is unsustainable - The payment of penalty to the GST portal is eminently sustainable - Hence the Department is directed to release the goods upon receipt of proof of payment: HC (Para 1,2,14) - Writ Petition Allowed : KERALA HIGH COURT
AAR CASES
2018-TIOL-97-AAR-GST
Habufa Meubelen B V
GST - the applicant company is the Indian branch of a firm incorporated in the Netherlands - The applicant seeks to know if the re-imbursement & salary paid to the liason office in India would attract GST as supply of service, given that no consideration for services is charged or paid - The applicant also seeks to know if it is required to obtain registration under GST - Besides, if it assumed that the re-imbursement of salary & expenses claimed by the liason office in India is treated as consideration for service, then what would be the place of supply of such service.
Held - If the liason office in India did not render any consultancy or other services directly or indirectly, with or without any consideration and the liason office does not have significant commitment powers, except those which are required for normal functioning of the office on behalf of the head office, then the reimbursement of expenses and salary paid by the company based abroad to the liason office established in India will not attract GST - Thereby, the applicant is not required to obtain registration under GST: AAR - Application Disposed Of : AUTHORITY FOR ADVANCE RULING
2018-TIOL-96-AAR-GST
Rara Udhyog
GST - the applicant is engaged in cleaning of agricultural produce brought to it by farmers & traders - The agricultural products also contain some quantity of mud, stones & dust particles owing to which the applicant also operates a cleaning plant to remove the impurities but without changing the essential characteristics of the produce - Hence the applicant seeks to know whether its activity is covered under Entry No 24(i)(i)(c) or Serial No 24(i)(iii) of Notfn No 11/2017-CT(R) dated 28/6/17 attractin nil rate of tax - The applicant also sought to know whether its activity is covered under Entry Sr No 54(c) or Entry No 55 or Entry No 55 of Notfn No 12/2017-CT(R) dated 28/6/17 attracting nil rate of tax. Held - the activity of the applicant is not covered under Entry No 24(i)(i)(c) or Sr No 24(i)(iii) of Notfn No 11/2017-CT(R) dated 28/06/17 and Entry Sr No 54(c) or Entry No 55 or Entry No 55 of Notfn No 12/2017-CT(R) dated 28/6/17 - Hence the activity will not attract nil rate of tax: AAR - Application Disposed Of : AUTHORITY FOR ADVANCE RULING
2018-TIOL-95-AAR-GST
Rhizo Organic
GST - the applicant company is engaged in manufacture of bio-fertilisers - It sought to know whether Bio Fertilizer is covered under the definition Organic Manure (HSN Code 3101) - It also sought to know applicable rate of GST on the item if it is not covered under 'Organic Manure'.
Held - the goods in question, Bio Fertilizer or Organic Manure, other than those put up in Unit Container and bearing a brand name would be covered under Schedule I of rate of GST on goods and attracts nil rate of duty - The goods goods Bio Fertilizer or Organic Manure being those put up in Unit Container and bearing a brand name would attract GST @ 5%: AAR - Application Disposed Of : AUTHORITY FOR ADVANCE RULING
2018-TIOL-94-AAR-GST
Sardar Mal Cold Storage and Factory
GST - the appliant owns cold storage houses & provides storage & warehousing facilities to variety of agricultural produce - The applicant sought to know the ambit of the definition for 'Support Service' of loading, unloading, packaging, storage or warehousing of agricultural produce as provided under Explanation (i)(e) to Sr No 24 of the Notfn of 11/2017-CT(R) dated 28/06/17.
Held - the goods Fennel, Coriander, Cumin Seeds, Carom Seeds, Fenugreek Seeds, Mustard Seeds, Brown Mustard Seeds, Nigella Seeds & Poppy Seeds fall under the ambit of Agricultural produce under Notfn No 11/2017-CT(R) - Hence supply of cold storage service in relation to these is exempt from levy of GST - However any processing of these goods which is not usully done by cultivator or producer at farm level, then such goods would not fall within ambit of Agricultural produce - In such case, supply of cold storage facility would attract levy of GST - The other goods of Turmeric, Dried Ginger, Dates, Dry Dates, Tamarind, Dry Mango, Dry Gooseberry, Dry Water Caltrops, Dry Peas, Cinnamon, Gum, Arjuna Chaal, Groundnuts, Copra Gola & Dry fruits do not fall within the ambit of Agricultural produce - Hence cold storage service provided for these items will attract GST: AAR - Application Disposed Of: AUTHORITY FOR ADVANCE RULING
JEST GST (By Vijay Kumar)
Rupee to be Recognised for Exports - GST Laws to be amended
ARTICLES
To follow or not, the CBIC Circular, is the question
GST Law Amendments - Many Ray Committee recommendations ignored!
Proposed amendments to GST laws - a humble feedback
AEO Scheme - Para 3.2 ('Legal Compliance') - The Bone of Contention
Key proposed amendments in GST law one must know
