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Corporate News *  Dept. Can’t Classify Product as Zarda Scented Tobacco After Repeatedly Approving It As Chewing Tobacco: CESTAT *  Mere Uploading Of GST Order On Portal Is Not “Valid” Service: Tripura HC *  CGST Can Proceed Even If SGST Closed Similar Case Earlier: Delhi HC *  SC upholds 28% GST on online gaming with retrospective effect. *  West Bengal Govt cuts E-way Bill Threshold limit to Rs. 50,000 for intra-state goods movement. *  Criminal Prosecution Under Central Excise Act Can’t Continue After CESTAT Sets Aside Duty Demand on Merits: Punjab & Haryana High Court. *  Madras High Court Quashes GST Assessment Orders for Denial of Personal Hearing; Remands Matter Subject to 10% Deposit *  Ex Parte GST Order: Madras High Court Directs Immediate Removal of Bank/ITC Attachment Upon 25% Deposit *  J.K. Cement Receives GST Demand Order of Rs 8,02,113/- from Ahmedabad Tax Authority *  Delhi Police EOW Busts Alleged Rs. 128 Crore GST Fake Invoice Network. *  REPLY TO SCN CAN’T BE TREATED AS “EMPTY FORMALITY”: ORISSA HIGH COURT QUASHES GST DEMAND OF RS. 57.30 LAKH *  Challenge to CGST Provisions restricting ITC to Bonafide Purchasers : Allahabad HC issues notice *  CBIC Notifies Revised Customs Tariff Values for Edible Oils, Gold, Silver, Brass Scrap and Areca Nuts *  Delhi HC Orders Removal of GST Attachment After Statutory 1 Year Period Expired *  GSTAT Extends Relaxed Appeal Filing Guidelines till December 31, 2026 *  AO fails to Provide Import - Export Data from DGFT to Taxpayer for Reconciliation *  Gold, Silver Imports To Get Costlier As Govt Raises Customs Duty To 10%  *  GSTAT Enables Pre-Payment Access to Document Upload and Checklist for GST Appeal Filing *  GST Portal Restrictions Can’t Override Statute: Gujarat HC Allows Cross-State Transfer Of CGST ITC After Amalgamation *  Centre Revises HS Codes for Large Diameter Steel Pipes Used in Oil & Gas Pipelines *  Customs Duty Liability Arises On Warehouse Clearance Date: Supreme Court *  Government lifts export ban on de-oiled rice bran *  CESTAT Grants 12% Interest on Pre-Deposit for Investigation from Date of Deposit till Refund and Denies Interest on Interest. *  Government Overhauls GST Classification Framework for Non-Alcoholic Beverages; Fruit Juice Drinks, Milk-Based Beverages and Caffeinated Drinks to Attract Revised 5% and 40% GST Rates from May 1, 2026 *  India’s gross GST collections hit a record Rs 2.42 lakh crore in April, up 8.7% *  Customs clearance stalled, revenue hit over MRP dispute *  Shipping Corporation explores Middle East routes as Hormuz tensions disrupt cargo movement *  India, Kenya signs MoU for exchange of pre-arrival customs information *  No demand of Taxes under Reverse Charge if Tax Already Discharged by Service Provider under forward charge *  The India-New Zealand Free Trade Agreement, signed "once-in-a-generation" deal that eliminates tariffs on 100% of Indian exports to New Zealand
Subject News *  Consignment Sales Can’t Be Reclassified as Inter-State Sales Based on Pre-Agreement Evidence: CESTAT *  Exporter Can’t Be Denied Advance Authorization Benefit Due To ICEGATE Technical Glitch: Delhi High Court *  No GST Demand For Mere Wrong Set-Off Of IGST Credit Under CGST And SGST Heads: Kerala HC. *  Cenvat Credit Can’t Be Denied on Input Services Having Nexus With Manufacturing Activities: CESTAT *  Pending Proceedings Can’t Survive Without Saving Clause: Calcutta High Court Quashes GST Demand of Rs. 6.28 Crore After Omission of Rule 96(10) *  Madras HC Quashes GST Demands on TASMAC (Tamil Nadu State Marketing Corporation) Bar Licence Fee *  GST Proceedings Cannot Survive Omitted Rule Without Saving Clause: Calcutta HC *  Provisional Release Can’t Be Denied Solely On Dept. Suspicion Of Misclassification And Undervaluation Of Imported Goods: CESTAT *  Businesses Should Not Be Kept Outside GST Regime Without Due Process: Gauhati High Court *  Punjab & Haryana HC Directs Reconsideration of Contractors’ Claim for Additional GST Payment After Tax Rate Hike From 12% to 18% *  S. 108 Statements Can’t Be Sole Basis Without Following Section 138B Procedure: CESTAT *  Bombay High Court Frames Key Questions on Mandatory Distribution of ITC U/s 20 CGST Act *  Filing of Annexure-B for Refund Applications involving Accumulated ITC using the offline utility in GST portal: GSTN *  No Service Tax on Parent Company’s Un-Invoiced Cost Allocations Without Actual Service or Consideration: CESTAT  *  Calcutta High Court Upholds GST Classification of Polypropylene Leno Bags as Plastic Products *  DRC-01 Summary Can’t Replace Mandatory SCN: Gauhati High Court *  GSTAT Issues Major Bench Allocation Framework; All Appeals to First Go Before Division Bench *  ITC Blocking Without Reasoned Order Violates Rule 86A; Punjab & Haryana HC Directs Release of Credit *  Allahabad HC Refuses Bail to CGST Superintendent In Rs. 70 Lakh Bribery Case *  S.130 Can’t Be Invoked Without Prior Tax Determination U/s 73/74: Allahabad High Court Quashes GST Confiscation Proceedings *  SC grants Bail to Rs 54cr GST case  *  Karnataka HC Sets Aside Duplicate GST Orders, Orders Fresh Hearing on GSTIN Cancellation *  DRC-01 Summary Can’t Replace Mandatory SCN: Gauhati High Court *  Transfer Of Unutilized ITC After Amalgamation - Supreme Court Issues Notice *  PUNJAB & HARYANA HC QUASHES GST CANCELLATION NOTICE FOR FAILURE TO PROVIDE CBIC ENQUIRY REPORT *  LICENSE FEE, TECHNICAL ASSISTANCE CHARGES NOT INCLUDIBLE IN CUSTOMS VALUE UNLESS THEY ARE A CONDITION OF SALE: CESTAT *  DELHI HC ORDERS REMOVAL OF GST ATTACHMENT AFTER STATUTORY 1 YEAR PERIOD EXPIRED *  CUSTOMS BROKER CAN’T BE FAULTED JUST BECAUSE EXPORTER’S GST REGISTRATION WAS PREVIOUSLY CANCELLED: CESTAT   *  Supreme Court Dismisses Review Plea Against Delhi HC Ruling Holding Real Operator Behind Fake GST Firms Liable As ‘Taxable Person  *  GST Appeal Can’t Be Rejected Merely Because DRC-07 Was Not Uploaded On Portal: Bombay High Court  

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GST UPDATE ON MISC POINTS IN 28TH COUNCIL MEET

GST UPDATE ON MISC POINTS IN 28TH COUNCIL MEET

              GST UPDATE ON MISC POINTS 28TH COUNCIL MEET
Some of the recommendations as discussed in the 28th Council meeting held on 21st July 2018 under the Chairmanship of Shri Piyush Goyal ,acting as Finance Minster along with our observations on these amendments are as under:-
1. Definition of Supply

  • The following transactions shall be not be treated as supply (no tax payable) under Schedule III:

a. Supply of goods from a place in the non-taxable territory to another place in the non-taxable    territory without such goods entering into India;
This was important as trade and industry was demanding the same. The goods have not entered in to Indian Territory but the GST was payable only due to the fact that billing is done from India. This is a welcome step.
b. Supply of warehoused goods to any person before clearance for home consumption; and
c. Supply of goods in case of high sea sales.
This was also demanded and there was confusion whether the GST is payable twice on High sea Sale. First time, when High sea sale is done and secondly when the actual import takes place. The Government has clarified that GST is payable on import only. But the law suggested against the same. Another point was also raised that proportionate credit is to be reversed on high sea sales. Now, this amendment has put an end to all such disputes.
2. Appeals and Recovery

  • Amount of pre-deposit payable for filing of appeal before the Appellate Authority and the Appellate Tribunal to be capped at Rs. 25 Crores and Rs. 50 Crores, respectively.

 The amount of pre-deposit was 10% for first appeal and 20% for the next appeal before tribunal. The demand of trade and industry was that it should 7.5% and 10% as was in Service Tax and Central Excise regime. It was not adhered to but overall cap has been provided in these rules. Hence, this will benefit the large tax payers who have huge demands. But poor small assessee has to pay 10% in appeal before Appellate authority and 20% in appeal before appellate tribunal.

  • Recovery can be made from distinct persons even if present in different states.

 
This example will clear it. Suppose one assessee having two registrations, one in state of Rajasthan and another in Assam. If the PAN number is same and demand is pending in Rajasthan then it can be recovered from Assam unit. When the registrations are separate then the separate then the recovery should be separate only. But if refund is applied in Assam then recovery of Rajasthan will be adjusted by officer. But the modus operandi to implement this procedure is to be seen. The officer may delay the refund by saying that he has asked other unit of same PAN whether any demand is pending against him.   This should not happen.
3. Credit/ Debit Notes

  • Registered persons may issue consolidated credit/debit notes in respect of multiple invoices issued in a Financial Year instead of issuing and co-relating one credit/debit note against each invoice.

This was also demanded by industry at large. Suppose, discount is given to buyers on overall turnover then it is very cumbersome to issue number of credit notes linking it with invoices. The whole industry was finding it difficult. Moreover, number of credit notes is to be raised for each invoice. This has been relaxed by the department.
4. Job Work

  • Commissioner to be empowered to extend the time limit for return of inputs and capital sent on job work, upto a period of one year and two years, respectively.

This is also a welcome step. Otherwise, in earlier provisions, it was said the material did not return in specified period will be termed as supply. But now the permission can be taken from the commissioner.

  • Place of supply in case of job work of any treatment or processdone on goods temporarily imported into India and then exported without putting them to any other use in India, to be outside India. 

This amendment will lead to non-payment of GST on such job work
5. Multiple Registrations

  • Taxpayers may opt for multiple registrations within a State/Union territory in respect of multiple places of business located within the same State/Union territory.

Earlier it was allowed only in case of separate business vertical. But now it is allowed if the assessee wishes so then he can take separate registration. This was needed by assessee as they have separate cost centre and it was very difficult to operate separate units and then compile the data of all the units in the same state.
 
 
 
We hope the above is useful to you.
 
Your Need Our Concern…
Thanking you,                                                                                 
Regards,
               
Pradeep Jain, F.C.A.
 

Opinion

              GST UPDATE ON MISC POINTS 28TH COUNCIL MEET
Some of the recommendations as discussed in the 28th Council meeting held on 21st July 2018 under the Chairmanship of Shri Piyush Goyal ,acting as Finance Minster along with our observations on these amendments are as under:-
1. Definition of Supply

  • The following transactions shall be not be treated as supply (no tax payable) under Schedule III:

a. Supply of goods from a place in the non-taxable territory to another place in the non-taxable    territory without such goods entering into India;
This was important as trade and industry was demanding the same. The goods have not entered in to Indian Territory but the GST was payable only due to the fact that billing is done from India. This is a welcome step.
b. Supply of warehoused goods to any person before clearance for home consumption; and
c. Supply of goods in case of high sea sales.
This was also demanded and there was confusion whether the GST is payable twice on High sea Sale. First time, when High sea sale is done and secondly when the actual import takes place. The Government has clarified that GST is payable on import only. But the law suggested against the same. Another point was also raised that proportionate credit is to be reversed on high sea sales. Now, this amendment has put an end to all such disputes.
2. Appeals and Recovery

  • Amount of pre-deposit payable for filing of appeal before the Appellate Authority and the Appellate Tribunal to be capped at Rs. 25 Crores and Rs. 50 Crores, respectively.

 The amount of pre-deposit was 10% for first appeal and 20% for the next appeal before tribunal. The demand of trade and industry was that it should 7.5% and 10% as was in Service Tax and Central Excise regime. It was not adhered to but overall cap has been provided in these rules. Hence, this will benefit the large tax payers who have huge demands. But poor small assessee has to pay 10% in appeal before Appellate authority and 20% in appeal before appellate tribunal.

  • Recovery can be made from distinct persons even if present in different states.

 
This example will clear it. Suppose one assessee having two registrations, one in state of Rajasthan and another in Assam. If the PAN number is same and demand is pending in Rajasthan then it can be recovered from Assam unit. When the registrations are separate then the separate then the recovery should be separate only. But if refund is applied in Assam then recovery of Rajasthan will be adjusted by officer. But the modus operandi to implement this procedure is to be seen. The officer may delay the refund by saying that he has asked other unit of same PAN whether any demand is pending against him.   This should not happen.
3. Credit/ Debit Notes

  • Registered persons may issue consolidated credit/debit notes in respect of multiple invoices issued in a Financial Year instead of issuing and co-relating one credit/debit note against each invoice.

This was also demanded by industry at large. Suppose, discount is given to buyers on overall turnover then it is very cumbersome to issue number of credit notes linking it with invoices. The whole industry was finding it difficult. Moreover, number of credit notes is to be raised for each invoice. This has been relaxed by the department.
4. Job Work

  • Commissioner to be empowered to extend the time limit for return of inputs and capital sent on job work, upto a period of one year and two years, respectively.

This is also a welcome step. Otherwise, in earlier provisions, it was said the material did not return in specified period will be termed as supply. But now the permission can be taken from the commissioner.

  • Place of supply in case of job work of any treatment or processdone on goods temporarily imported into India and then exported without putting them to any other use in India, to be outside India. 

This amendment will lead to non-payment of GST on such job work
5. Multiple Registrations

  • Taxpayers may opt for multiple registrations within a State/Union territory in respect of multiple places of business located within the same State/Union territory.

Earlier it was allowed only in case of separate business vertical. But now it is allowed if the assessee wishes so then he can take separate registration. This was needed by assessee as they have separate cost centre and it was very difficult to operate separate units and then compile the data of all the units in the same state.
 
 
 
We hope the above is useful to you.
 
Your Need Our Concern…
Thanking you,                                                                                 
Regards,
               
Pradeep Jain, F.C.A.
               GST UPDATE ON MISC POINTS 28TH COUNCIL MEET
Some of the recommendations as discussed in the 28th Council meeting held on 21st July 2018 under the Chairmanship of Shri Piyush Goyal ,acting as Finance Minster along with our observations on these amendments are as under:-
1. Definition of Supply

  • The following transactions shall be not be treated as supply (no tax payable) under Schedule III:

a. Supply of goods from a place in the non-taxable territory to another place in the non-taxable    territory without such goods entering into India;
This was important as trade and industry was demanding the same. The goods have not entered in to Indian Territory but the GST was payable only due to the fact that billing is done from India. This is a welcome step.
b. Supply of warehoused goods to any person before clearance for home consumption; and
c. Supply of goods in case of high sea sales.
This was also demanded and there was confusion whether the GST is payable twice on High sea Sale. First time, when High sea sale is done and secondly when the actual import takes place. The Government has clarified that GST is payable on import only. But the law suggested against the same. Another point was also raised that proportionate credit is to be reversed on high sea sales. Now, this amendment has put an end to all such disputes.
2. Appeals and Recovery

  • Amount of pre-deposit payable for filing of appeal before the Appellate Authority and the Appellate Tribunal to be capped at Rs. 25 Crores and Rs. 50 Crores, respectively.

 The amount of pre-deposit was 10% for first appeal and 20% for the next appeal before tribunal. The demand of trade and industry was that it should 7.5% and 10% as was in Service Tax and Central Excise regime. It was not adhered to but overall cap has been provided in these rules. Hence, this will benefit the large tax payers who have huge demands. But poor small assessee has to pay 10% in appeal before Appellate authority and 20% in appeal before appellate tribunal.

  • Recovery can be made from distinct persons even if present in different states.

 
This example will clear it. Suppose one assessee having two registrations, one in state of Rajasthan and another in Assam. If the PAN number is same and demand is pending in Rajasthan then it can be recovered from Assam unit. When the registrations are separate then the separate then the recovery should be separate only. But if refund is applied in Assam then recovery of Rajasthan will be adjusted by officer. But the modus operandi to implement this procedure is to be seen. The officer may delay the refund by saying that he has asked other unit of same PAN whether any demand is pending against him.   This should not happen.
3. Credit/ Debit Notes

  • Registered persons may issue consolidated credit/debit notes in respect of multiple invoices issued in a Financial Year instead of issuing and co-relating one credit/debit note against each invoice.

This was also demanded by industry at large. Suppose, discount is given to buyers on overall turnover then it is very cumbersome to issue number of credit notes linking it with invoices. The whole industry was finding it difficult. Moreover, number of credit notes is to be raised for each invoice. This has been relaxed by the department.
4. Job Work

  • Commissioner to be empowered to extend the time limit for return of inputs and capital sent on job work, upto a period of one year and two years, respectively.

This is also a welcome step. Otherwise, in earlier provisions, it was said the material did not return in specified period will be termed as supply. But now the permission can be taken from the commissioner.

  • Place of supply in case of job work of any treatment or processdone on goods temporarily imported into India and then exported without putting them to any other use in India, to be outside India. 

This amendment will lead to non-payment of GST on such job work
5. Multiple Registrations

  • Taxpayers may opt for multiple registrations within a State/Union territory in respect of multiple places of business located within the same State/Union territory.

Earlier it was allowed only in case of separate business vertical. But now it is allowed if the assessee wishes so then he can take separate registration. This was needed by assessee as they have separate cost centre and it was very difficult to operate separate units and then compile the data of all the units in the same state.
 
 
 
We hope the above is useful to you.
 
Your Need Our Concern…
Thanking you,                                                                                 
Regards,
               
Pradeep Jain, F.C.A.
 

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