NEWS FLASH

GST Council approves proposed amendments in laws; No interest to be paid if ITC is reversed on failure to make payment within 180 days + exemption to IT services in case of Related Parties + to define expression 'renting of immovable property' + extends exemption upto Sept 2019 on outward transportation by air or sea + RCM to apply on DSA services to banks or NBFCs

GST Council reduces tax rates on as many as 87 items + 5% IGST on Pool price of imported urea by Govt + exemption from CESS to coal rejects + water supplied for public purposes + 5% tax rate on marine engines

GSTN to link all tolls & nakkas through RAFD for smooth movement of goods + SOP to be issued to overcome e-Way Bill related penalty + Migration window without interest to remain open till Aug-end

GST Council to meet again on Aug 4, 2018 + to focus on issues relating to only MSME Sector + also to discuss possible sops for digital payments

GST Council hikes exemption limit from Rs 10 lakhs to Rs 20 lakhs in States like HP, Uttaranchal, Assam, Arunachal & two more + also allows multiple registration within a State if taxpayer wishes so + simplifies cancellation of registration

GST - Council decides to make it quarterly return but monthly payment upto Rs 5 Crore turnover - Relief for 93% taxpayers + approves 10% of turnover or upto Rs 5 lakh worth of services by Composition dealers + suspends RCM upto September 2019

GST Council decides 28% tax to apply only on actual hotel tariff of Rs 7500 rather than declared tariff

GST Council grants relief to textile sector - ITC refund to be granted but after July 27, 2018

GST Council exempts many items such as statutes of god, rakhi, brooms & many others + tax rate on handloom items lowered from 12% to 5% + rate on ethanol down to 5% + many items moved from 28% to 18% slab

GST Council approves New two-page GSTR + facility of revision of GSTR + quarterly return for composition dealers but monthly tax payment + exemption to sanitary napkins + 5% tax rate on shoes up to Rs 1000 + many items like TV upto 25 inch + Fridge & other electronic items from 28% to 18% slab + powers to share IGST and CESS collected before 5 years

 

NATIONAL ANTI-PROFITEERING AUTHORITY

2018-TIOL-04-NAPA-GST + Case Story

Rishi Gupta Vs Flipkart Internet Pvt Ltd

GST - Section 171 of the CGST Act, 2017 - Withdrawal of discount does not amount to profiteering as the same was offered from his profit margin by the Supplier and does not form part of the base price and, therefore, also the Supplier cannot be held guilty under Section 171 of the Act-Respondent M/s Flipkart Internet Pvt. Ltd. is not the Supplier/manufacturer of the Almirah and was only an agent who had offered his platform to the Supplier to sell the Almirah by charging commission, and was also not responsible for collection or refund of GST and hence he cannot be held accountable for contravention of Section 171 of the CGST - However, there may be several such cases in which the e-platforms had collected excess GST from the buyers and have not refunded the same after the tax was reduced on various products on 15.11.2017 - Therefore, National Anti-Profiteering Authority had directed the Director General of Audit, Central Board of Indirect Taxes and Customs to audit the major e-platforms and submit it's findings to the Authority - Respondent M/s Flipkart informed that there were 7254 cases in which the rate of GST at the time of booking of the orders on their platform was higher than the rate of GST prevalent at the time of delivery and the Respondent had initiated the process of refund of the differential amount as per the instructions of the sellers -allegation of profiteering made by the Applicant against the Respondent as well as the Supplier is not established - application not maintainable and hence dismissed: NAPA [para 7 to 11]

Application dismissed

Observations of Authority -

++ It is clear that the Supplier (M/s Godrej & Boyce) had charged correct rates of GST which were prevalent at the time of placing of the order and the supply of the Almirah through the above two invoices, therefore, no illegality had been done by the Supplier while executing the order placed by the Applicant.

++ It is also apparent from the record that the Supplier had not changed the base price of Rs. 11,993.75/- which was prevalent at the time of booking on 4.11.2017, at the time of delivery on 29.11.2017. Hence the Supplier has not resorted to profiteering by increasing his base price or appropriated the excess amount of tax charged from the Applicant and hence the allegation of violation of the provisions of Section 171 of the above Act is not established.

++ It is also apparent that the Respondent was not the Supplier/manufacturer of the Almirah and was only an agent who had offered his platform to the Supplier to sell the Almirah by charging commission, and was also not responsible for collection or refund of GST and hence he cannot be held accountable for contravention of Section 171 of the CGST  Act, 2017.

++ It has also been found that the Supplier has refunded an amount of Rs. 700/- through the Respondent which was charged as tax in excess from the Applicant at the time of the placing of the order.

++ Withdrawal of discount does not amount to profiteering as the same was offered from his profit margin by the Supplier and does not form part of the base price a nd, therefore, also the Supplier cannot be held guilty under Section 171 of the Act.

HIGH COURT

2018-TIOL-75-HC-KERALA-GST

KBM Agencies Vs Secretary Taxes, Goods and Service Tax Department

GST - the petitioner is a registered dealer, who was unable to upload its returns onto the GST portal, within the stipulated time frame - Such returns could not be uploaded due to some system errors - Hence it seeks appropriate directions in this regard.

Held - The petitioner is directed to approach the Nodal Officer concerned and file representations therein - The Nodal officer would look into the issue & facilitate the petitioner to file its returns - Should the petitioner be found unable to upload the returns for reasons not attributable to itself, then the Nodal Officer would also enable the petitioner to take credit of input tax available on migration to GST: HC (Para 1,5,6) -Writ Petition Disposed Of : KERALA HIGH COURT

TOP NEWS

GST - Major relief granted to Services in IT, Education, Agri, Banking & Food Processing sectors

GST - Many transactions in Schedule III to constitute 'No Supply'

GST Council takes slew of decisions to reduce tax rates & simplify compliance norms

New GST Return to work on 'upload, lock & pay' basis; NIL returns through SMS

GST Registration - Part B of REG-26 not filled - Do it before Aug 31

GST - CBIC Chairman asks officers to liquidate pendency relating to Budgetary Support Scheme

ARTICLES

28th GST Council meeting decisions - an overview

GST Law Amendments - Will Council make it more taxpayer-friendly?

Babus allowed reimbursement of GST