E-Way Bill in 6 States for intra-State movement of goods from 20th April. Maharashtra will introduce from 1st May
20th April, 2018
After E-Way Bills were implemented for inter-State movement of goods from 1st April, 2018, several States have begun to implement this procedure to cover, track and create audit trail for intra-State movement of goods. Click to read
GST Council keeps RCM on hold till June - Businesses under composition levy need not furnish related data
18th April 2018
GST Council has decided to keep the "reverse charge mechanism" (RCM) on hold till June. The RCM model of taxation is similar though not identical to TDS applicable in direct taxes. In RCM purchases made from any unregistered business becomes taxable in the hands of the recipient. This measure is intended to ensure that GST applies universally on all transactions including those from fully exempted businesses. Click to read more
Dissenting order by Supreme Court - "Parachute Oil" whether "coconut oil" or "Preparation for use in hair"
16th April 2018
The Hon’ble Supreme Court Judges presiding on the classification of “Parachute Oil” have dissented in their conclusion in a judgement dated 13th April, 2018. Consequently, the matter has been referred to the CJI for further decision and orders.
The product “Parachute Oil” is packed and marketed in unit containers of upto 2 Lt /500 ml. Two alternative classifications were being considered for the product - whether as “coconut oil” under Chapter Heading 1513 or as “Preparations for use in hair” under Chapter Heading 3305. To download full judgement click : CCE Vs Madhan Agro Ind (I) Pvt. Ltd.
“Natural gas” purchase eligible for concessional CST rate under “C” Form even after GST
By a judgement passed on 28th March, 2018, the Hon'ble Punjab & Haryana High Court in Carpo Power Limited Vs State of Haryana & Ors has held that the Petitioners will continue to be eligible for concessional CST rate under "C" Forms even after the introduction of GST on all their purchases of "natural gas" from M/s BPCL & M/s IOL in Gujarat. The Court accordingly directed the respondents' to issue `C’ Forms.
CBIC issues circular to intercept and inspect conveyances for e-way bills& recovery of taxes
14th April 2018
The Central Board of Indirect Tax & Customs (CBIC) issues Circular No. 41/15/2018-GST dated 13th April, 2018 to ensure uniformity in procedure relating to interception, inspection, detention, seizure, release, confiscation of goods and conveyances in transit under section 129 and 130 of the CGST Act read with rules 138 to 138D of the CGST Rules.
The CBITC set out the procedure through Circular No 42/16/2018-GST dated 13th April, 2018 for recovery of taxes under the legacy laws i.e. central excise, service tax or for the recovery of inadmissible cenvat credit or credit wrongly carried forward as transitional credit under sec 140 of the CGST Act, and interest, penalty etc. consequent to assessment, adjudication, appeal proceedings.
Bombay HC - GST leviable on any "consideration" incl one-time premium on lease
13th April 2018
Bombay High Court in a recent judgement dated 28th March, 2018 ruled in favour of the Revenue and CIDCO saying that Goods & Services Tax (GST) is leviable on “any consideration” even if it is styled as “a one-time premium” on lease of land. Builders Association & Ors Vs Union of India & Ors
The Court dwelt on section 7(1)(a) of the CGST Act which defines the expression “supply” the main ingredient determining GST liability. “Supply” includes “all forms of supply of goods or services or both such as sale, transfer, barter, exchange, licence, rental, lease or disposal made or agreed to be made for a consideration by a person in the course or furtherance of business”. In addition to section 7(1)(a) the Court also referred to Schedule II of the CGST Act which lists the activities to be treated as “supply of goods or supply of services”. In particular, item No 2 in the said Schedule II which relates to leasing of land or any building was referred to. Reading these provisions harmoniously the High Court concluded :
“Once this law, in terms of the substantive provisions and the Schedule, treats the activity as supply of goods or supply of services, particularly in relation to land and building and includes a lease, then, the consideration therefor as a premium/one-time premium is a measure on which the tax is levied, assessed and recovered. We cannot then probe into the legislation any further.”
Advance Authority Rulings on GST issues - Kerala
11th April 2018
The contract for "supply" requires the rubber trees to be severed before supply, it is movable and comes under the definition of 'goods'. " 'Goods' means every kind of movable propertv other than money and securities but includes actionable claim, growing crops, grass and things attached to or forming part of the land which are agreed to be severed before supply or under a contract of supply." Authority for Advance Ruling - Kerala : Sri. N.C. Varghese, Thrissur : Order No. CT/3270/18-C3 dated 26th March, 2018
Sale of goods procured from China and supplied to USA directly will not be liable to GST. Also, no GST liability on goods stored in the warehouse in Netherlands and supplied to customer in & around Netherlands, procured from China as goods are not imported into India: Synthite Industries Ltd : Order No. CT 12275/18-C3 dated 26th March, 2018
Whether recovery of food expenses from employees for the canteen provided by company comes under the definition of outward supplies are taxable under GST Act? The Authority rules, yes such recoveries would amount to a taxable supply. Also, under service tax, such recoveries were specifically exempted. No such exemption exists under GST law : Caltech Polymers : Order No. CT/531118-C3 dated 26th March, 2018
CBITC provides relief to exporters on LUT acceptance under GST
7th April, 2018
Presumably due to an IT glitch, the LUTs submitted on-line in the common portal in FORM GST RFD-11 are not visible to jurisdictional Central Tax Officers and in a few States. CBITC has clarified by simultaneously modifying the earlier Circular No. 8/8/2017-GST dated 4th October, 2017. LUTs submitted online in FORM GST RFD-11 “...shall be deemed to be accepted as soon as an acknowledgement for the same, bearing the Application Reference Number (ARN), is generated online.”
This relief will be available only to those exporters who are eligible to furnish a LUT instead of a Bond. So this will not apply to exporters who are supposed to execute a Bond
Govt sets up IT Grievance Redressal Mechanism for GST
4th April, 2018
This redressal mechanism is expected to deal with bonafide cases where attempts have been made by the taxpayer to either file the return or to amend the same but the attempts have failed due to IT glitches. The tax payer is expected to have collateral evidence to establish the bonafide attempts made to comply. This redressal mechanism will only cover common issues affecting a large cross section of tax payers. It is not intended to address local or individual issues such as non-availability of internet connectivity etc.
Applications made by tax payers with the evidences will be collated by the nodal officer and sent to the GSTN which will examine the issue and send it further to the IT Grievance Redressal Committee alongwith suggested solutions. for a decision.
Madras HC dismisses PIL petition to include petroleum products in GST
The Hon'ble Madras High Court dismissed on 15th March, 2018 in K.K.Ramesh Vs. Union of India & Ors a PIL petition seeking the inclusion of petroleum products in GST. The petitioner argued that excluding petroleum products from GST is detrimental to the common man as it increases price of petroleum products which in turn has a spiralling effect on price of essential commodities. So petrol and diesel prices should be brought into GST. This will truly refelect as "One Nation One Tax".
Madras HC observed that Courts cant direct the Government to include petroleum products in GST, Government policy cant be determined by a Court. As per Section 9(2) of the CGST Act, its the GST Council which has to recommend. Click to read the full text of the judgement
Govt makes GST concessions - Extends time limits
29th March, 2018
|April 2018||31st May 2018|
|May 2018||10th June 2018|
|June 2018||10th July 2018|
Recent Judgements 2018
13th April : Supreme Court : "Parachute Oil" whether "coconut oil or "preparation for use in hair" CCE Vs Madhan Agro Ind (I) Pvt. Ltd. Dissenting order passed, matter placed before the CJI for orders.
28th March, 2018 : Punjab & Haryana High Court in Carpo Power Limited Vs State of Haryana & Ors held concessional CST rate under "C" Forms eligible on purchase of "natural gas" even after GST.