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GST - Tax base may be split but intelligence-based action against all, clarifies CBIC
GST NOTIFICATIONS
utgst_rule_15
Constitution of Appellate Authority for Advance Ruling in Union Territories notified
utgst_rule_14
Constitution of Appellate Authority for Advance Ruling in Union Territories notified
GST NAPA CASE
2018-TIOL-09-NAPA-GST + Case Story
Director General Anti-Profiteering, Central Board of Indirect Taxes & Customs Vs Kunj Lub Marketing Pvt Ltd
GST - Anti-profiteering - S.171 of the CGST Act, 2017 - Respondent has no such liberty to arbitrarily decide in respect of which products he would pass on the benefit and in respect of which products he would not pass such benefit: NAA [para 12]
GST - Maggi Noodle Packs (35 gms) - Respondent informing that as it was not possible to pass on the GST benefit of 25 paise on Rs.5/- packet of Maggi Noodles they passed on the benefit of GST rate reduction in respect of the product bearing MRP of Rs.5/- through other packs of Maggi Noodles, having different grammage, namely, 70 grams - Respondent had no legal sanction to increase the base price of the product on his own and what was required of him was that he should have only reduced the MRP of the product by taking in to account the effect of the reduction in the rate of tax - benefit of reduction in the GST rate was not passed on to the recipients by way of commensurate reduction in the price charged by the Respondent which amounts to violation of the provisions of s.171 of the Act - Respondent cannot be allowed to resort to profiteering: NAA [para 11]
GST - Respondent had no mandate to deny the benefit of reduction of the tax rate due to the problem of legal tender as he had no legal authority to fix MRP arbitrarily - Ministry of Consumer Affairs has already issued detailed instructions vide it's Notification dated 16.11.2017 for notifying the reduced MRP which have not been followed by the above Respondent: NAA [para 11]
GST - Maggi Noodle pack of 35 grams is distinct from a 70 grams pack and both the packs may be bought by different customers - benefit accruing to one customer cannot be given or denied to another nor can the benefit given to one set of customers arbitrarily enhanced and set off against the another - provisions of Section 171 of the CGST Act mandate that the benefit has to be passed on to each recipient and the same cannot be selectively granted or denied - Respondent directed to refund an amount of Rs.2,253/- to the Applicant along with interest @ 18% p.a. - Since the other customers of the product are not identifiable, the Respondent is directed to deposit the balance amount of Rs.88,525/- along with the interest at 18% P.A. till the date of deposit in the respective Central or State Consumer Welfare Fund within a period of 3 months from the date of receipt of this order - Authority also directed issuance of SCN for imposition of penalty prescribed under Section 122 of the Act read with rule 133 (3) (d) of the CGST Rules, 2017: NAA [para 8, 10 to 14]
- Application allowed :NAPA
GST AAR CASES
2018-TIOL-192-AAR-GST
PPD Living Spaces Pvt Ltd
GST - As per paragraph 5 of the Schedule III of the CGST Act, sale of land and, subject to clause (b) of paragraph 5 of Schedule II, sale of building shall be treated neither as a supply of goods nor as a supply of service - in the instant case, the completion certificate in respect of the project has been issued on 31.05.2018 and the proposed transaction is in respect of sale of developed plots/land with civil structures after issuance of Completion Certificate, therefore, transaction is covered by paragraph 5 of Schedule III of the GST Act.
Held: It is lawful to structure agreement by fixing the land cost after absorbing the development charges - The Input Tax credit availed in respect of the GST paid on goods and/or services used/consumed for the development of the land, in respect of the plots sold after the issuance of Completion Certificate is liable to be reversed on pro rata basis: AAR
- Application disposed of: AAR
2018-TIOL-191-AAR-GST
New Rv Enterprises
GST - Applicant seeks advance ruling on the tax rate applicable for Tile Adhesive and Joint Fillers manufactured by them.
Held: Tile Adhesive and Joint Filler manufactured by mixing natural products like silica sand, dolomite powder, cement and chemicals falls under the category of ‘prepared binder' specified under HSN 3824 which is taxable @18%: AAR
- Application disposed of: AAR
2018-TIOL-190-AAR-GST
Mary Matha Construction Company
GST - Applicant has undertaken works by way of sub-contracts in respect of the following projects viz. construction of hospital block building in Govt. Medical College; construction of non-science building for various departments at Central University of Kerala; construction of biotech lab and administrative block at Life Science Park, Trivandrum - applicant seeks advance ruling on the rate of GST in respect of the said contracts.
Held: Supply of works contracts awarded by Government and that by the Central University of Kerala attracts 12%- however, supply of works contracts awarded by M/s HLL Infra Tech Services Ltd. for the construction of Biotech Lab and administrative block at Life Science Park, Trivandrum attracts GST @18%, 11/2017-CTR, since the same is a commercial venture of KSIDC Ltd., a State PSU: AAR
- Application disposed of: AAR
2018-TIOL-189-AAR-GST
Geojith Financial Services Ltd
GST - Applicant is engaged in providing various retail financial services like stock broking, share broking, marketing of IPOs of companies and mutual funds, corporate advisory services etc. which were not taxable under the earlier VAT law - based on transitional provisions, they claimed Input Tax Credit on closing stock of computers, laptops and other goods lying in their physical possession as on 30 th June 2017 - in these circumstances, they seek advance ruling on the following viz. whether computers, laptops etc. would qualify as Inputs for the purpose of availing transitional ITC u/s 140(3) of KSGST Act; if the goods are physically available as closing stock on 30.06.2017, can they avail ITC for the VAT paid.
Held : Computers, laptops etc. were used by the applicant for providing output service and are capital assets - as per section 2(x) of Kerala Value Added Tax Act, defining "capital goods", the subject computers, laptopsused for rendering of services are in the exclusion list - appellant being a service provider is not eligible to avail Input Tax credit on computers and laptops during the transition period - proviso to section 140(2) is specific to the point that Input Tax credit, if not available under the erstwhile law, cannot be claimed as transitional credit - also section 140(3) of the GST Act covers "credit of eligible duties in respect of inputs held in stock as held on the appointed day" - in view thereof, the computers, laptops etc. used by applicant for providing output service would not qualify as inputs for the purpose of availing transitional ITC since it is not an "eligible" credit - so also is the case with the goods physically available as closing stock as on 30 th June 2017 i.e. ITC is not eligible for the VAT paid: AAR
- Application disposed of: AAR
ARTICLES
GST - Agenda for the second year- Part VI
Place of supply - Someone should own up
