GST Rate to be reviewed by GST Council

The GST Council is scheduled to meet on 18th December to review GST rates.

This is necessitated by the consistent fall in both the GST and Compensation Cess collections.

Also the States, particularly opposition ruled States have been applying pressure on the Centre to release GST payments immediately as Rs 50,000 cr cess lies unutilised.

This GST review more specifically covers exempted items, items with inverted rates, compensation cess rate. This may lead to GST rates on certain items being raised. 

 

Central Excise & Service tax Amnesty Scheme

  1. 1. Chapter V of the FA 2019 (full text of SVLDR Scheme)
  2. 2. SVLDR Rules
  3. 3. SVLDR Notification No 4/2019
  4. 4. CBIC Circulars dated 28.08.2019 and 25.09.2019
  5. 5. FAQs on SVLDR
  6. 6. SVLDR Departmental presentation
GST Optimisation Part 2

This is the 2nd Part of the set of videos on “GST Optimisation”. It explains how indirect tax cascading still continues in India even after implementing GST. The video covers specific situations in which tax cascading happens. This video is meant for the general public and not exactly the tax experts. So the language is simpler devoid of sections, rules, technical expressions and tax jargon.

https://www.youtube.com/watch?v=pohxDYOjLNU&t=226s

GST Optimisation Part 1

This is the first part of a three part video set on Tax Optimisation, more specifically GST Optimisation. Its created for those who are not too familiar with taxation and yet keen to understand and benefit by optimising on taxes. This can be useful for people handling indirect taxation too as the aim of these videos is to conceptually clarify the subject.

https://youtu.be/tWWb9ClOOZg

"The Indian GST Story" by Anthony Fernandes - Founder of Tax Quotient


1st June 2019

 

 
   

 

Recent Court / Tribunal Judgements

 CESTAT Decisions

 

18th October, 2018 : CESTAT Mum : UPS Jetair Express Private Limited   Vs Commissioner of CGST, Mumbai East 

Revenue denied CENVAT credit only on the ground invoices didn't mention the registration number of the service provider. No other allegations were made regarding receipt of input services, eligibility etc.

Held : This is merely a procedural lapse. It is settled that CENVAT credit can't be denied on mere technicalities or procedural lapses.

CENVAT credit allowed, extended period of limitation not applicable.

Ed's comment : Isnt it surprising that a Senior Officer like Prin. ADG, DGPM, WRU, still needs to catch up with decades old case law regarding Modvat and Cenvat? It's repeatedly held procedural lapses aren't reason enough to deny credit. How will the dept reduce litigation? Should Tribunal for fairness?

18th October, 2018 : CESTAT Ahd : M/s Auto Care Lubricant Vs C.C.E. & S.T.-Vapi
The Tribunal relying on an earlier decision in Castrol India Ltd, held :
“The authorities under the Standards of Weights and Measures Act are the best judge to decide as to whether a product is required to be affixed with a MRP under the said Act or not. If said authority has clarified that 210 ltr. barrel are not required to be affixed with MRP, it was obligatory on the part of the Excise authority to accept such decision of Controller of Legal Metrology authority….., it was not open to the Excise authority to doubt the decision of the authority under Standards of Weights and Measures Act and to proceed independently ….”

18th October 2018 : CESTAT Ahd : M/s Javiya Finance Services, Javiya Marketing Vs C.C.E.& S.T.- Surat-I
The appellant were providing service of identifying customers for car loans and receiving commission from ICICI Bank. This was to be taxed under Business Auxiliary Services (BAS).  

The appellants admitted taxability but argued they were under bonafide belief the services are not taxable and so extended period of limitation should not be invoked.
Held : "The definition of Business  Auxiliary  Services  is  very  clear  and  there  is  no  scope  of interpretation. The definition specifically includes the service of promotion or marketing of any service of the client within its ambit." Appeals dismissed.

 

 12th Oct : CESTAT Mum : Tahnee Heights CHS Ltd. Vs Commissioner of CGST, Mumbai South : Held : "The appellant also do not provide any service to its members, who pay the amount towards their share of contribution, for occupation of the units ....the explanation furnished under clause 3(a) in Section 65B of the Act will not designate the appellant as an entity, separate from its members....the case of the appellant is not confirming to the requirement of 'service', as per the definition contained in Section 65B(44) of the Act."

10th Oct : CESTAT Ahd :  L & T Ltd. etc Vs C.C.E. Ahd Appellants argued the law and IS specifications had changed for their product "concrete mix" made at site. It was eligible for the exemption making the earlier Supreme Court judgement in their own case irrelevant.

Tribunal ruled that there is no change in the  C.Ex Tariff Heading description as far as ready mix concrete is concerned. There is no mention of any IS Specification anywhere in the SC judgement. So changes in IS Specifications cannot be used to distinguish the decision of Hon’ble Apex Court. Demand beyond the period of limitation set aside. Personal penalty quashed as this is a case of interretation.

11th Oct : CESTAT Chennai : M/s. Pepsico India HPL Vs Commr of GST & CE, Chennai Outer : The appellants had paid excess central excise duty for which they utilised the CENVAT credit. On realizing this they suo moto took re-credit of the excess amount debited from the Cenvat account.

Held:  Following the said decisions of the High Courts, The impugned order and demand was set aside.

High Court Judgements

 

2nd July, 2018  : Allahabad High Court : Hamdard (Wakf) Labs Vs Commr Of Commercial Taxes : The High Court upholds the Tribunal order and holds that "Sharbat "Rooh Afza" is not unclassifiable under Schedule-V of the Act and liable to tax @ 12.5%. It is neither fruit juice nor fruit drink nor processed fruit.

 2nd July, 2018 :  Delhi High Court : JOYCE KAROUNG Vs NARCOTICS CONTROL BUREAU : Relying on the SC judgment in Babua v. State of Orissa, (2001) 2 SCC 566 the High Court concluded the petitioner is not prima facie not guilty. Also, liberty of a citizen must be balanced with the interest of the society especially where narcotic drugs and psychotropic substances are involved. It is alleged that this is not the first offence.
   
   

Click for earlier Judgements in 2018

GST Central Tax Rate Notifications issued in 2017

GST - Central Tax (Rate) Notifications 2017

 Notifn No                         

 Date

 Subject

No 47/2017 Central Tax (R) 14/11/2017 Seeks to amend notification No. 11/2017- Central Tax (Rate) so as to notify CGST rates of various services as recommended by Goods and Services Tax Council in its 25th meeting held on 18.01.2018.
No 46/2017 Central Tax (R)
14/11/2017 Seeks to amend notification No. 11/2017-CT(R) so as to specify rate @ 2.5% for standalone restaurants and @9% for other restaurants, reduce rate of job work on “handicraft goods” @ 2.5% and to substitute “Services provided” in item (vi) against Sl No. 3 in table.
No 45/2017 Central Tax (R)
14/11/2017 Seeks to provide concessional GST rate of 2.5% on scientific and technical equipments supplied to public funded research institutions.
No 44/2017 Central Tax (R)
14/11/2017 Seeks to amend notification no. 5/2017- Central tax(rate) dated 28.06.2017 to give effect to gst council decisions regarding restriction of ITC on certain fabrics.
No 43/2017 Central Tax (R) 14/11/2017 Seeks to amend notification no. 4/2017- Central tax(rate) dated 28.06.2017 to give effect to gst council decision regarding reverse charge on raw cotton.
No 42/2017 Central Tax (R) 14/11/2017 Seeks to amend notification no. 2/2017- Central tax(rate) dated 28.06.2017 to give effect to gst council decisions regarding gst exemptions
No 41/2017 Central Tax (R) 14/11/2017 Seeks to amend notification no. 1/2017- Central tax(rate) dated 28.06.2017 to give effect to gst council decisions regarding gst rates.
No 40/2017 Central Tax (R) 23/10/2017 Seeks to prescribe Central Tax rate of 0.05% on intra-State supply of taxable goods by a registered supplier to a registered recipient for export subject to specified conditions.
No 39/2017 Central Tax (R) 18/10/2017 Seeks to reduce GST rate on Food preparations put up in unit containers and intended for free distribution to economically weaker sections of the society under a programme duly approved by the Central Government or any State Government.
No 38/2017 Central Tax (R) 13/10/2017 Seeks to exempt payment of tax under section 9(4) of the CGST Act, 2017 till 31.03.2018
No 37/2017 Central Tax (R) 13/10/2017 Seeks to prescribe Central Tax rate on the leasing of motor vehicles.
No 36/2017 Central Tax (R) 13/10/2017 Seeks to amend notification No. 4/2017-Central Tax (Rate).
No 35/2017 Central Tax (R) 13/10/2017 Seeks to amend notification No. 2/2017-Central Tax (Rate).
No 34/2017 Central Tax (R) 13/10/2017 The notification No. 34/2017-Central Tax (Rate) seeks to amend notification No. 1/2017-Central Tax (Rate).
No 33/2017 Central Tax (R) 13/10/2017 Seeks to amend notification No. 13/2017-CT(R) regarding services provided by Overseeing Committee members to RBI under RCM.
No 32/2017 Central Tax (R) 13/10/2017 Seeks to amend notification No. 12/2017-CT(R).
No 31/2017 Central Tax (R) 13/10/2017 Seeks to amend notification No. 11/2017-CT(R).
No 30/2017 Central Tax (R) 29/09/2017 Exempting supply of services associated with transit cargo to Nepal and Bhutan.
No 29/2017 Central Tax (R) 22/09/2017 Seeks to amend notification no. 5/2017- central tax(rate) dated 28.06.2017 to give effect to gst council decisions regarding restriction of refund on corduroy fabrics.
No 28/2017 Central Tax (R) 22/09/2017 Seeks to amend notification no. 2/2017- central tax(rate) dated 28.06.2017 to give effect to gst council decisions regarding gst exemptions.
No 27/2017 Central Tax (R) 22/09/2017 Seeks to amend notification no. 1/2017- central tax(rate) dated 28.06.2017 to give effect to gst council decisions regarding gst rates.
No 26/2017 Central Tax (R) 21/09/2017 Exempt certain supplies to NPCIL.
No 25/2017 Central Tax (R) 21/09/2017 Seeks to amend notification No. 12/2017-CT(R) to exempt right to admission to the events organised under FIFA U-17 World Cup 2017.
No 24/2017 Central Tax (R) 21/09/2017 Seeks to amend notification No. 11/2017-CT(R) to reduce CGST rate on specified supplies of Works Contract Services.
No 23/2017 Central Tax (R) 22/08/2017 Seeks to amend notification No. 17/2017-CT(R) to make ECO responsible for payment of GST on services provided by way of house-keeping such as plumbing, carpentering etc.
No 22/2017 Central Tax (R) 22/08/2017 Seeks to amend notification No. 13/2017-CT(R) to amend RCM provisions for GTA and to insert explanation for LLP.
No 21/2017 Central Tax (R) 22/08/2017 Seeks to amend notification No. 12/2017-CT(R) to exempt services provided by Fair Price Shops to Government and those provided by and to FIFA for FIFA U-17. Also to substitute RWCIS & PMFBY for MNAIS & NAIS, and insert explanation for LLP.
No 20/2017 Central Tax (R) 22/08/2017 Seeks to amend notification No. 11/2017-CT(R) to reduce CGST rate on specified supplies of Works Contract Services, job work for textile & textile products, printing service of books, newspapers etc, admission to planetarium, and, also to provide option to GTA & transport of passengers by motorcab service providers to avail full ITC & discharge CGST @ 6%
No 19/2017 Central Tax (R) 18/08/2017 Seeks to reduce CGST rate on specified parts of tractors from 14% to 9 %
No 18/2017 Central Tax (R) 30/06/2017 Seek to reduce the rate of Central Tax, Union Territory Tax, on fertilisers from 6% to 2.5% and Integrated Tax rate on fertilisers from 12% to 5%
No 17/2017 Central Tax (R) 28/06/2017 To notify the categories of services the tax on intra-State supplies of which shall be paid by the electronic commerce operator
No 16/2017 Central Tax (R) 28/06/2017 To notify specialised agencies entitled to claim a refund of taxes paid on the notified supplies of goods or services or both received by them under CGST Act
No 15/2017 Central Tax (R) 28/06/2017 To notify the supplies not eligible for refund of unutilized ITC under CGST Act
No 14/2017 Central Tax (R) 28/06/2017 To notify the supplies which shall be treated neither as a supply of goods nor a supply of service under the CGST Act
Corrigendum to Notification 13/2017 CT (R) 25/09/2017 Corrigendum to Notification 13/2017 CT (R)
No 13/2017 Central Tax (R) 28/06/2017 To notify the categories of services on which tax will be payable under reverse charge mechanism under CGST Act
No 12/2017 Central Tax (R) 28/06/2017 To notify the exemptions on supply of services under CGST Act
Annexure to Notification No 11/2017 CT (R) 28/06/2017  Annexure to Not No 11/2017 CT(R)
No 11/2017 Central Tax (R) 28/06/2017 To notify the rates for supply of services under CGST Act
No 10/2017 Central Tax (R) 28/06/2017 CGST exemption for dealers operating under Margin Scheme notified under section 11 (1)
No 09/2017 Central Tax 28/06/2017 Exempting supplies to a TDS deductor by a supplier, who is not registered, under section 11 (1)
No 08/2017 Central Tax 28/06/2017 CGST exemption from reverse charge upto Rs.5000 per day under section 11 (1)
No 07/2017 Central Tax 28/06/2017 Exemption from CGST supplies by CSD to Unit Run Canteens and supplies by CSD / Unit Run Canteens to authorised customers notified under section 11 (1) and section 55 CSD
No 06/2017 Central Tax 28/06/2017 Refund of 50% of CGST on supplies to CSD under section 55
No 05/2017 Central Tax 28/06/2017 Supplies of goods in respect of which no refund of unutilised input tax credit shall be allowed under section 54 (3)
No 04/2017 Central Tax 28/06/2017 Reverse charge on certain specified supplies of goods under section 9 (3)
No 03/2017 Central Tax 28/06/2017 2.5% concessional CGST rate for supplies to Exploration and Production notified under section 11 (1)
Corrigendum 2 to Not No 2/2017 Central Tax (R) 27/07/2017 Corrigendum 2 to Not No 2/2017 CT (R)
Corrigendum 1 to Not No 2/2017 Central Tax (R) 12/07/2017 Corrigendum 1 to Not No 2/2017 CT (R)
No 02/2017 Central Tax 28/06/2017 CGST exempt goods notified under section 11 (1)
Corrigendum 3 to Notification No 1/2017 Central Tax 27/07/2017 Corrigendum 3 to Not No 1/2017 CT (R)
Corrigendum 2 to Notification No 1/2017 Central Tax 12/07/2017 Corrigendum 2 to Not No 1/2017 CT (R)
Corrigendum 1 to Notification No 1/2017 Central Tax 30/06/2017 Corrigendum 1 to Not No 1/2017 CT (R)
No 01/2017 Central Tax 28/06/2017 CGST Rate Schedule notified under section 9 (1)

Tax Risk Management Part 1

An Introduction

 

Risk comes from not knowing what you’re doing. 
- Warren Buffet

Read the Article

 

Tax Risk Management Part 2

Tax Risks as Black Swan Events!

If you were asked "What 'tax risks' you perceive in your business?" What would be your answer?

Read the Article

 

 

Indirect Tax Risk Management

Indirect Risk Tax Management
 

 

 

 

Economic Survey of India 2017-18