CGST CIRCULAR

91/2019

Clarification regarding tax payment made for supply of warehoused goods while being deposited in a customs bonded warehouse for the period July, 2017 to March, 2018

90/2019

Compliance of rule 46(n) of the CGST Rules, 2017 while issuing invoices in case of inter-State supply

89/2019

Mentioning details of inter-State supplies made to unregistered persons in Table 3.2 of FORM GSTR-3B and Table 7B of FORM

 

GST HIGH COURT

2019-TIOL-41-HC-P&H-GST

Vikas Goel Vs CGST

GST - Petitioners are seeking grant of regular bail in arrest made by Director General of Goods and Services Tax Intelligence, Gurugram Zonal unit u/s 69 of CGST Act allegations by the department is that petitioners have made bogus billing and adjusted the amount without any transportation of the goods or sale of goods etc.; that only paper transactions were done and amounts have been adjusted and wrongly claimed relief is of more than Rs. 80 crores; that officer from the office of Director General of Goods and Services Tax Intelligence visited the registered premisses of M/s Sriram Industries and said premises was found closed and on enquiry from the person available in the close vicinity, it was ascertained that the said premises was closed for the last five years; that premises was controlled and used by Vinay Kumar Gupta, Director of M/s MICA Industries; that search was conducted leading to recovery and seizure of a large number of incriminating documents indicating evasion of CGST duty; that statements were recorded of Director of M/s MICA Industries and Proprietor of M/s Galaxy Metals Products; that further investigation was conducted from transporters etc.

Held: Keeping in view the facts and circumstances of the present case, nature and gravity of the offence and in view of the fact there were justifiable grounds to arrest the petitioners under Section 69 of the CGST Act and further in view of the fact that case involves evasion of more than Rs. 80 crores of tax under the CGST and offence is punishable with imprisonment for a period of five years and complaint is stated to have already been filed, Court does not find any ground to grant benefit of regular bail to the petitioners no merit in the petition, hence dismissed: High Court

- Petitions dismissed : PUNJAB AND HARYANA HIGH COURT

 

GST AAR CASES

2019-TIOL-50-AAR-GST

Pasco Motor Llp

GST - Invoices being raised by supplier in previous month and goods being received in succeeding month - Input Tax credit is available only when goods are received - liability to pay tax arises on the basis of time of supply, which in case of supply of goods is date of issue of

invoice by supplier or last date on which he is required to issue invoice in terms of s.31(1) or the date on which supplier receives payment, whichever is earlier: AAR

- Application Dispose of: AAR

2019-TIOL-49-AAR-GST

Oscar Security And Fire Service

GST - Manpower Services provided to Hospital-cum-General Medical College and State University does not qualify for exemption under Sr. no. 66 of notification 12/2017-CTR as exemption applies only to services supplied to educational institutions providing education upto higher secondary school or equivalent level only: AAR

- Application Dispose of: AAR

2019-TIOL-48-AAR-GST

Yyk India Pvt Ltd

GST - Words ‘Hiring' and ‘Renting' are synonymous - Applicant is not eligible for Input Tax credit of GST charged by the contractor for hiring of buses/cars for transportation of employees - Restriction on ‘Rent-a-cab' service specified in s.17(5)(b)(iii) of the Act is applicable to Input Tax Credit on GST charged by contractor for hiring of buses/cars for transportation of employees: AAR

- Application Dispose of: AAR

2019-TIOL-47-AAR-GST

BM Industries

GST - Applicant on merger of his proprietorship firm as a going concern with a private limited company is not liable to pay GST on the fixed assets and current assets including stocks of raw material, semi-finished and finished goods - Input tax credit available in the credit ledger account shall be transferred to the respective account of the private limited company consequent upon merger subject to provisions of s.18(3) of the Act and rule 41 of the Rules, 2017 - provisions of s.18(3) and rule 41 are not applicable to balance lying in electronic cash ledger: AAR

2019-TIOL-46-AAR-GST

Boldrocchi India Pvt Ltd

GST - Pollution control device supplied by applicant for use in 'waste to energy plants/devices' are classifiable under CH 8421 of CTA, 1975 and covered under Schedule I to Notification 1/2017-CTR chargeable to GST @5%: AAR

2019-TIOL-45-AAR-GST

Awla Infra

GST - Private Entrepreneurs godowns built under PEG-2008 scheme of FCI and leased out to nodal agency (UPSWC) on lease and services basis for storage of FCI's food grain stocks (wheat) - Leasing of immovable property and support services in relation to agricultural produce provided by the applicant cannot be understood to be naturally bundled and supplied in the ordinary course of business; are in the nature of ‘mixed supply' and attracts GST @18% under SAC 997212: AAR

2019-TIOL-44-AAR-GST

Aristoplast Products Pvt Ltd

GST - Plastic Broom-sticks is classifiable under HSN Code 9603 2100 as ‘Others' and eligible for concessional rate of tax @5% under Notification 1/2017-CTR – ‘Portable Sprayers' is classifiable under HSN Code 8424 4100 and attracts GST @18%: AAR

2019-TIOL-43-AAR-GST

GST - Services for right to use minerals including its exploration and evaluation is included under heading 9973, notfn. 11/2017-CTR - royalty/dead rent paid/payable to Government is consideration - attracts same rate of tax as on supply of like goods involving transfer of title in goods - Stone boulders extracted by applicant attract 5% GST as

covered under HSN 2516, notfn. 1/2017-CTR - applicant is liable to discharge tax liability on such services provided to it on reverse charge basis: AAR

- Application Dispose of: AAR

 

GST AAAR CASES

2019-TIOL-04-AAAR-GST

Loyalty Solutions And Research Pvt Ltd

GST - The applicant under a reward point based loyalty programme, is providing certain services to its clients /partner which is based on issuance of reward points, also known as payback points by the applicant to end customers - For managing this loyalty programme, applicant is getting Management fee and/ or service charge fee - Applicant had sought a ruling as to whether this amount of issuance fee retained/forfeited by applicant would amount to consideration for actionable claims and subject to GST - AAR had held that t he value of points forfeited of the applicant on which money had been paid by the issuer of points on account of failure of the end customers to redeem the payback points within their validity period would amount to consideration received in lieu of services being provided by applicant to its clients and, therefore, would qualify as “supply of services” in terms of Section 7 of the Act and would be within the scope of levy of GST and consequently be chargeable to GST - appeal to AAAR.

Held: Consideration for the unredeemed payback points has already flowed from the partners - After validity period, the same has become appellant's Revenue by virtue of the contract for servicing of the loyalty scheme including the points ibid, executed between the partners and the appellants - Even if it is admitted that there is a provisioning of service by the appellant to the end-customers, there cannot be any such service or actionable claim against the payback points not redeemed by them against anyone - Advance Ruling upheld and appeal dismissed: AAAR

- Appeal dismissed: AAAR

2019-TIOL-03-AAAR-GST

Esprit India Pvt Ltd

GST -Appellant had sought advance ruling on the following questions viz. Taxability of stated services provided by Espirit India to its associate concern in Hong Kong EDCFE; whether the said services are covered under Export of Service having zero rated taxability; whether Espirit India is eligible for seeking refund of GST for the taxes paid on input services or goods or both - AAR had held that questions asked by the appellant were out of the scope of section 97(2) of the CGST Act and the questions could not be taken up by the AAR due to lack of jurisdiction - appeal to AAAR.

Held: AAR has rightly identified the SAC description with rate of tax while answering the first question and rightly declined answering the questions 2 and 3 raised by the applicant/appellant as being outside the purview of section 97(2) of the Act - Advance Ruling does not suffer from any infirmity or illegality and same is upheld - Appeal dismissed: AAAR

- Appeal dismissed: AAAR

 

JEST GST by Vijay Kumar

In its path to perfection, GST has much dust to settle-legislatively and judicially

 

ARTICLES

GST - Agenda for the second year - Part XXV

Proportionate ITC & Excess Payment - Another case for Refund?

Resolve Long-neglected TDS & PF problems

Prolific Off-Budgeting has Diluted Fiscal Discipline