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ny

VOLUME: 5 11st MAY, 2019

NUMBER: 14

Dear Readers, With India general elections now in final round with only two rounds left, there is surely a new Government in the offing. If the market grapevine is to be believed, it may be come back for present NDA Government. If that actually happens, while there may be broader continuity of economic policies, growth may trigger with vigour and new energy keeping long-term perspective in mind. Economic reforms, tax reforms and GST in particular may see a positive outlook and change with stability, ease of doing business and industrial growth being in focus. On economic front, while the stock markets are in bear grip owing to several uncertainties including political one. On GDP numbers itself, questions are being raised on GDP numbers. According to a recent survey by National Sample Survey Office (NSSO), there are about one-third of shell companies (untraceable) which have been taken into account for new GDP numbers and actual numbers may be lower. This infact does not seem logical. Tax collections are also likely to be down by about Rs. 80000 crore in direct taxes itself. Indirect taxes may fetch about 92% of the estimates. CBIC has recently issued a new set of FAQ’s on GST on real estate projects for which changes were made recently. Accordingly, while a home buyer can not decide upon the rate of GST to be

ASCO’S GOODS & SERVICE TAX COUNSELLOR

(AN INHOUSE FORTNIGHTLY NEWSLETTER ON GST)

(FOR PRIVATE CIRCULATION)

EDITOR: NEHA SOMANI, [B.COM, ACA] CHIEF EDITOR: DR. SANJIV AGARWAL, [FCA, FCS, ACIS (UK)]

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GSTCOUNSELLOR GSTC

levied to installments remaining to be paid for a under construction flat or on a new booking, it is the builder who will have to opt for the GST rate, i.e., new or old @ 12%. As a result, there could be situations that for a similar flats, different buyers may have to shell out different amounts based on options chosen by the builders. The date for exercising the option for residential real estate project to either stay at old GST rate (8% or 12% with ITC) or to avail new GST rate (1% or 5% without ITC) is being extended to 20.05.2019 from 10.05.2019 vide Notification No. 10/2019-Central Tax (Rate) dated 10.05.2019. Further, where a dwelling unit booked earlier is cancelled and credit note is issued, as required under GST law, tax paid against such remittance in past could be adjusted against tax liability and refund be claimed by home buyer. DATE: 11.05.2019 DR. SANJIV AGARWAL

v Income Tax Department to share Taxpayers Information with GSTN

Ø The CBDT has notified a designated Authority, Principal Director General of Income Tax

(System) or Director General of Income Tax (System) to furnish information in respect to assessees to GSTN u/s 138 (1)(a) of Income Tax Act, 1961.

Ø This will be done under a MOU which will cover aspects like modalities of exchange of data, confidentiality, mechanism for safe preservation, etc.

Ø Data/information will include request-based exchange of data wherein important financial fields captured in return of income like turnover/gross total income, status of filing ITR, turnover ratio, GTI range, turnover range etc., spontaneous exchange of data and automatic exchange of data, if it is felt that such information sharing is necessary for GSTN authorities to perform function under GST law.

Ø This move will enable authorities to identify under –reporting or non-reporting of income and is expected to curb tax evasion by the businesses by cross-checking of information available with both the tax bodies.

[Source: CBDT Order F.No. 225/105/2019/ITA-II dated 30.04.2019]

v Simplified Auto Registration for IEC holders at ICEGATE Ø Presently, IEC (Importer/Exporter Code) registration is allowed on ICEGATE (Indian

Customs Electronic Commerce/Electronic Data interchange Gateway) website, with Digital Signature and requires approval. Such registered IEC holders can file documents on ICEGATE.

GOODS AND SERVICES TAX UPDATES

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Ø In order to attract importers and exporters for registration on ICEGATE and to provide them with various information services including reports, a simplified registration module in ICEGATE has been now made available so as to register at the ICEGATE without the need to upload the Digital Signature Certificate (DSC), PAN verification, document upload to ICEGATE and approval procedure.

Ø This Simplified Auto Registration is based on IEC and GSTIN requiring OTP verifications of e-mail and mobile number.

Ø However, IEC holders registered under Simplified Auto Registration category are not permitted to file Customs documents.

[Source : www.icegate.gov.in]

v Ongoing Real Estate Project- Option to be exercised by 20.05.2019 Ø According to clauses (ie) and (if) of Entry 3 of Notification No. 3/2019-CT(R) dated

29.03.2019, for supply made in an ongoing real estate project, an option is required to be exercised by the Promoter / Builder by 10th May, 2019 either to opt for old rates (8% or 12%) or new rate (5%) by 10th May, 2019 .

Ø The date for exercising the option in an ongoing real estate project is being extended to 20.05.2019.

Ø In case, no option is exercised by May 20th, 2019 then, real estate companies shall be covered under the lower tax rate of 5 % and 1 % with effect from April 1, 2019, and will not be entitled to avail inputs tax credit .

[Source : Notification No. 10/2019-Central Tax (Rate) dated 10.05.2019]

v Extension in due date of Form GSTR-1 in specified districts of Odisha Ø CBIC has extended the due date of furnishing the details of outward supply of goods or

services or both in FORM GSTR-1 for the month of April, 2019 for registered persons whose principal place of business is in the districts of Angul, Balasore, Bhadrak , Cuttack , Dhenkanal , Ganjam, Jagatsinghpur, Jajpur, Kendrapara, Keonjhar, Khordha, Mayurbhanj, Nayagarh and Puri in the State of Odisha to 10th June, 2019”.

[Source : Notification No. 23/2019-Central Tax dated 11.05.2019]

v Extension in due date of Form GSTR-3B in specified districts of Odisha Ø CBIC has extended the due date of furnishing the return in FORM GSTR-3B for the

month of April, 2019 for registered persons whose principal place of business is in the districts of Angul, Balasore, Bhadrak , Cuttack , Dhenkanal , Ganjam, Jagatsinghpur, Jajpur, Kendrapara, Keonjhar, Khordha, Mayurbhanj, Nayagarh and Puri in the State of Odisha to 20th June, 2019”.

[Source : Notification No. 24/2019-Central Tax dated 11.05.2019]

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The taxman has asked builders to choose before May 10 the new goods & services tax (GST) rate for ongoing realty projects. The concessional rate, which came into effect April 1, was set at 1% for affordable houses and 5% for others, from the earlier 8% and 12%, respectively. Developers of under-construction projects could opt for the new or previous rate, but now they have been asked to exercise this option before Friday in the prescribed format.

This means, two people buying identical flats in the same apartment complex but in different buildings or towers, could technically end up paying different GST rates. If the developer does not choose the rates before May 10, then the new GST rates will kick in automatically, the Central Board of Indirect Taxes and Customs said. The rules of the concessional scheme, including transitional ones. In the case of projects that begin on or after April 1, no such option is available, and these residential apartments will compulsorily have to pay the new 1% and 5% rates. Developers need to carefully evaluate as to which scheme is more efficient and clearly communicate to the customers accordingly.

The builder, not the buyer, gets to choose the new rate regime. In effect, the tax component of buyers could vary from building to building even if they opt for flats in the same apartment complex, experts say. Buyers would now face situations where buildings under construction in the same complex could be subjected to differing rates of GST as builders could exercise the option of availing input tax credits on some buildings and foregoing the credits on others.

If flats are booked before April 1but cancelled, the tax paid can be adjusted against any other GST liability, including the 1% or 5% rates outgo. However, if the cancelled flats are resold after April 1, the credit availed earlier on procurements will be reversed. In projects where one building is registered under RERA but construction, booking and occupancy of buildings vary then the rate will be determined for the project as a whole, Deduction of land would be one third and not on the actual land value.

(SOURCE : ECONOMIC TIMES DATED 09.05.2019)

India’s goods and services tax revenue touched the highest ever in April, but the spurt in collections is far from becoming the norm just yet. Collections from the nationwide sales tax rose 10 percent to 1.13 trillion rupees ($16 billion) in April from a year ago, official data show. While that was the closest to the 1.15 trillion rupees monthly target set by Prime Minister

GOODS AND SERVICES TAX

RECORD INDIA GST COLLECTION AN EXCEPTION RATHER THAN THE RULE

NOW, OWNERS MAY HAVE TO PAY DIFFERENT GST FOR IDENTICAL FLATS

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Narendra Modi’s administration, it’s still not enough to bridge the Government’s budget gap, say economists.

If GST collections do not improve further and sustain, the pressure on the central Government’s fiscal position will continue. The targeted growth of 24 percent in the financial year ending March 31 will “be difficult to achieve.” India let fiscal deficit widen for a second straight year as Modi, who’s seeking a second term in office in elections currently underway, tried to win over voters through cash handouts for farmers and tax cuts for the middle class.

The Government needs to more stringently implement programs to discourage tax evasion and boost compliance of direct and indirect taxes to alleviate the fiscal stress. The Government had touted GST as a tool to increase tax compliance when it was introduced in July 2017. Collections under the new tax have crossed the 1 trillion rupee-mark in three of the first four months in 2019, suggesting it’s gaining traction.

(SOURCE : ECONOMIC TIMES DATED 07.05.2019)

All invoices for business-to-business sales by entities beyond a specified turnover threshold will be generated on a centralised Government portal by September, a move aimed at curbing the menace of fake invoices and evasion of GST.

The revenue secretary is monitoring the progress of implementation of electronic or e-invoice project for which an officers' committee has already been set up, they added. E-invoice for B2B transactions will be rolled out in next three-four months in a phased manner. The entire invoice would have to be generated on a Government portal.

The move will help in curbing Goods and Services Tax (GST) evasion through issue of fake invoices. Besides, it would make the returns filing process simpler for businesses as invoice data would already be captured by a centralised portal. Once rolled out, the e-invoice project will allow businesses to simultaneously generate e-way bill, if needed.

Depending on the success of the project in the B2B segment, the revenue department would be looking at extending it to business-to-consumer (B2C) sales, especially in sectors where the probability of tax evasion is high.

Businesses beyond the specified turnover threshold, to be decided later, would be provided a software which will be linked to the GST Network (GSTN) or a Government portal for generating e-invoice. The threshold can also be fixed on the basis of the value of invoice.

The e-invoice generation method will be similar to the one being followed for e-way bill on the 'ewaybill.nic.in' portal or payment of GST on the GSTN portal.

A 13-member officers' committee, comprising central and state tax officials as well as the GST Network Chief Executive, has been set up to look into the feasibility of introducing e-invoice system to streamline generation of invoices and easing compliance burden. The committee will finalise its interim report this month.

B2B INVOICES WILL HAVE TO BE GENERATED ON GOVT PORTAL BY SEPTEMBER TO CHECK GST EVASION

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The proposed 'e-invoice' is part of the exercise to check GST evasion. With almost two years into GST implementation, the Government is now focussing on anti-evasion measures to shore up revenue and increase compliance. There are over 1.21 crore registered businesses under the GST, of which 20 lakh are under the composition scheme.

(SOURCE : NEWS18 DATED 06.05.2019)

States to run large deficits due to burgeoning social sector expenditure and capital spending , says S&P analyst Goods and Services Tax (GST) regime in India is not likely to reduce the deficits of state Governments significantly, amid large and growing expenditure mandates for the social sector as well as capital spending, says a report. According to S&P Global Ratings the institutional framework for Indian states is evolving, but there is structural deficits due to persistent revenue expenditure mismatch.

S&P Global Ratings credit analyst YeeFarn Phua in the report titled “Public Finance System Overview: Indian States” noted that the passage of the GST bill in 2017 is a major overhaul of tax structure and will help to widen the tax base and improve revenues of state Governments.

However, states will continue to run large deficits because a significant part of this imbalance is from the expenditure side. States are unable to cut expenditures because of large and growing expenditure mandates for the social sector as well as capital spending. Therefore, the revenue-expenditure gap will remain large. Further, policy implementation remains sub-par in India, the report noted.

Another significant development in recent years has been the adoption of an amended Fiscal Responsibility Management (FRBM) Act, which forms the fiscal framework, in March 2018, the report noted. Under the amended FRBM Act, the Government will target a debt-to-GDP ratio of 60 per cent with the split being 40:20 for central Government and states. Further, the Government will use fiscal deficit as the key operational target, the report said but added that the FRBM committee lacks the authority to mandate its core recommendations.

(SOURCE : BUSINESS LINE DATED 07.05.2019)

The Delhi High Court has directed the Goods and Services Tax Council to review the tax structure for solar power projects. The decision was in response to a writ filed by the Solar Power Development Association, which had challenged the latest tax formulation for solar power generating systems unveiled on January 1.

The court has asked the GST Council to relook at the mater in consultation with the Central Board of Indirect Taxes and Customs and the ministry of new and renewable energy. It has given the Government two months to revert and scheduled the next hearing in August.

RELOOK GST ON SOLAR SECTOR, HC TELLS PANEL

GST NOT TO REDUCE STATE GOVERNMENT DEFICITS SIGNIFICANTLY: REPORT

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“Between divergent AARs and an ad hoc basis of fixing a presumptive valuation between goods and service, the solar sector has had a chaotic induction into GST…(order) holds out hope of a quick and definitive solution to this long-standing problem of the solar industry.

The Government, following industry representations on the impact of divergence in tax practices, provided a deemed valuation provision that entailed taxing 70% of contract value as goods, taxable at 5%, and balance 30% as services, taxable at 18%. The industry was disappointed as the said ad-hoc valuation did not provide a fair estimate of the actual split of goods and services. Typically, the said ratio in the solar sector is around 90:10. The new formulation also brought with itself several implementation challenges.

Earlier, divergent decisions from the Authority for Advanced Rulings (AAR) led to huge confusion in the industry over the applicable tax rate. AAR had ruled both 5% and 18% levies, though the industry felt that the Government intent was to tax solar power systems NSE -1.21 % at the lower rate. The industry is of the view that applying 18% tax would derail India’s plan to add 100 GW of green power by 2022.

(SOURCE : ECONOMIC TIMES DATED 06.05.2019)

In a judgement that is sure to put huge financial burden on already cash-crunched real estate developers, all home buyers of a housing project will automatically be the party to a case filed against the builder. The ruling says, under Section 12 (1) (c) of the Consumer Protection Act, irrespective of whether they have filed the case or not, buyers will be eligible for the benefits, according to a National Consumer Disputes Redressal Commission (NCDRC) judgment on Friday.

The failure of the builder/ developer to deliver possession of the flat / plot sold to them and a complaint filed for the benefit of or on behalf of all such consumers and claiming same relief for all of them, would be maintainable under Section 12(1)(c) of Consumer Protection Act,’’ the commission said while interpreting the Section 12(1)(c) of the Act.

The interest of the persons on whose behalf the claim is brought must be common or they must have a common grievance which they seek to get addressed. The defect or deficiency in the goods purchased, or the services hired or availed of by them should be the same for all the consumers on whose behalf or for whose benefit the complaint is filed. Therefore, the oneness of the interest is akin to a common grievance against the same person. This is a path breaking judgement for buyers, who would now get the benefits without going through judicial process.

However, this judgement would maximise the compensation burden on builders as they will now have to pay everybody, which they might not be able to honour. Buyers can also now move NCDRC if the aggregate of the value of the goods or services and the compensation claimed in the complaint exceeds Rs 1crore. Also, in case the grievance of the consumer is common and an identical relief is claimed for all of the applicants the cost, the size, area of the flat/plot and the date of booking/allotment/purchase would be wholly immaterial, according to the order. I

ALL HOME BUYERS MAY GET RELIEF FOR DELAY IN DELIVERY BY BUILDERS

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also fear the automatic application of compensation on all buyers would now apply to investors as well, who might actually exploit the situation.

Consumer activism has been on a rise in the recent past and favourable judgements against big real estate players have infused faith among the home buyers to move court. NCDRC has recently acted against many big names in the industry on complaint of home buyers. The commission recently asked Jaypee to pay 12% interest for for delaying its Kalypso Court project in Noida. In another order, it also asked Mumbai-based builder Lodha group to refund `1.02 crore to a buyer with 18% interest.

NCDRC on May 6 directed Parsvnath Developers to refund the entire amount paid by around 70 home buyers in its Parsvnath Exotica project in Ghaziabad with 12% interest for failing to complete the apartments on time. The order would apply to all old and new such cases filed under Section 12 (1) (c) of the Act, according to Sethi, which would surely make life tough for defaulting real estate developers.

(SOURCE : BUSINESS STANDARD DATED 04.05.2019)

REVISED DUE DATES OF VARIOUS FILINGS IN REMAINING MAY, 2019

Return Purpose Period To be filed by

GSTR-7 Details of tax deducted at source(TDS April, 2019 10.05.2019 (yesterday)

GSTR-8 Details of tax collected at source(TCS) April, 2019 10.05.2019 (yesterday)

GSTR-1 Details of outward supplies (monthly) April, 2019 11.05.2019

GSTR-6 Input Service Distributor April, 2019 13.05.2019

GSTR-5 Details of outward taxable supplies and tax payable by Non Resident Taxable person (monthly)

April, 2019 20.05.2019

GSTR-5A Details of outward taxable supplies and tax payable by OIDAR (monthly)

April, 2019 20.05.2019

GSTR-3B Payment of tax April, 2019 20.05.2019

OBLIGATIONS UNDER GOODS AND SERVICES TAX

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GST on Recovery of Canteen Facility from Employees

In Re: Caltech Polymers Pvt. Ltd. (2018) 12 GSTL 350; (2018) 54 GSTR 70; (2018) 67 GST 95;

(2018) 4 TMI 582; (2018) 92 taxmann.com 142 (AAR-Kerala), the assessee preferred in

application for Advance Ruling for taxability of recovery of food expenses from employees for

the canteen services provided by it. It submitted that they were providing canteen services

exclusively for their employees. All the canteen expenses were recovered from its employees

without any profit margin. It further contended that such service was not being carried out as

a business activity.

The AAR observed that even though there is no profit as claimed by the applicant on the supply

of food to its employees, there is ‘supply’ as provided in Section 7(1 )(a) of the GST Act, 2017.

The applicant would definitely come under the definition of ‘Supplier’ as provided in sub-

section (105) of Section 2 of the GST Act, 2017.Further, since the applicant recovers the cost of

food from its employees, there is consideration as defined in Section 2(31) of the GST Act,

2017.

The Authority for Advance Ruling (AAR) ruled that the recovery of food expenses from the

employees for the canteen services provided by company would come under the definition of

‘outward supply’. Therefore, it would be taxable as a supply of service under GST.

Aggrieved by the Advance Ruling, an appeal was preferred before the AAAR where, the appeal

was dismissed and advance ruling confirmed. [In Re: Caltech Polymers Pvt. Ltd. (2018) 18 GSTL

373; (2018) 10 TMI 1313; (2018) 98 taxmann.com 35; (2018) 70 GST 582 (AAAR- Kerala)].

Therefore, the supply of food items to the employees for consideration in the canteen run by

the appellant company would come under the definition of 'supply' and would be taxable under

GST.

ADVANCE RULINGS UNDER GST

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F. No. 354/32/2019-TRU dated 07.05.2019

Subject: FAQs on real estate- reg.

A number of issues have been raised regarding the new GST rate structure notified for real

estate sector effective from 01-04-2019. A compilation of Frequently Asked Questions (FAQs) is

presented below. The answers to the FAQs have been given in simple language for guidance

and easy understanding of all stakeholders in the real estate sector. They do not have force of

law. In case of conflict, the gazette notifications, which have legal force, shall have precedence.

S.

No. Question Answer

1. What are the rates of GST applicable on construction of residential apartments?

With effect from 01-04-2019, effective rate of GST applicable on construction of residential apartments by promoters in a real estate project are as under: Description

Effective rate of GST (after deduction of value of land)

Construction of affordable residential apartments

1% without ITC on total consideration

Construction of residential apartments other than affordable residential apartments

5% without ITC on total consideration

The above rates are effective from 01-04-2019 and are applicable to construction of residential apartments in a project which commences on or after 01-04-2019 as well as in on-going projects. However, in case of on-going project, the promoter has an option to pay GST at the old rates, i.e. at the effective rate of 8% on affordable residential apartments and effective rate of 12% on other than affordable residential apartments and, consequently, to avail permissible credit of inputs taxes; in such cases the promoter is also expected to pass the benefit of the credit availed by him to

GOODS AND SERVICES TAX : FROM THE GOVERNMENT

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2. What is an affordable residential apartment?

Affordable residential apartment is a residential apartment in a project which commences on or after 01-04-2019, or in an ongoing project in respect of which the promoter has opted for new rate of 1% (effective from 01-04-2019) having carpet area upto 60 square meter in metropolitan cities and 90 square meter in cities or towns other than metropolitan cities and the gross amount charged for which, by the builder is not more than forty five lakhs rupees. [Cities or towns in the notification shall include all areas other than metropolitan city as defined, such as villages.] In an ongoing project in respect of which the promoter has opted for new rates, the term also includes apartments being constructed under the specified housing schemes of Central or State Governments. [Metropolitan cities are Bengaluru, Chennai, Delhi NCR (limited to Delhi, Noida, Greater Noida, Ghaziabad, Gurgaon, Faridabad), Hyderabad, Kolkata and Mumbai (whole of MMR) with their geographical limits prescribed by Government.]

3. What is an on-going project?

A project which meets the following conditions shall be considered as an ongoing project. (a) Commencement certificate for the project, where required, has been issued by the competent authority on or before 31stMarch, 2019, and it is certified by a registered architect, chartered engineer or a licensed surveyor that construction of the project has started (i.e. earthwork for site preparation for the project has been completed and excavation for foundation has started) on or before 31st March, 2019. (b) Where commencement certificate in respect of the project, is not required to be issued by the competent authority, it is to be certified by any of the authorities specified in (a) above that construction of the project has started on or before the 31st March, 2019. (c) Completion certificate has not been issued or first occupation of the project has not taken place on or before the 31st March, 2019. (d) Apartments of the project have been, partly or wholly, booked on or before 31stMarch, 2019.

4. Does a promoter or a builder has option to pay tax at old rates of 8% & 12% with ITC?

Yes, but such an option is available in the case of an ongoing project. In case of such a project, thepromoter or builder has option to pay GST at old effectiverate of 8% and 12% with ITC. To continue with the old rates, the promoter/ builder has to exercise one time option in the prescribed form and submit the same manually to the jurisdictional Commissioner by the 10th of May, 2019.

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However, in case where a promoter or builder does not exercise option in the prescribed form, it shall be deemed that he has opted for new rates in respect of ongoing projects and accordingly new rate of GST i.e. 5% / 1% shall be applicable and all the provisions of new scheme including transitional provisions shall be applied. There is no such option available in case of projects which commence on or after 01.04.2019. Construction of residential apartments in projects commencing on or after 01.04.2019 shall compulsorily attract new rate of GST @ 1% or 5% without ITC.

5. What is the rate of GST applicable on construction of commercial apartments [shops, godowns, offices etc.] in a real estate project?

With effect from 01-04-2019, effective rate of GST, after deduction of value of land or undivided share of land, on construction of commercial apartments [shops, godowns, offices etc.] by promoter in real estate project are as under: Description

Effective rate of GST (after deduction of value of land)

Construction of commercial apartments in a residential real estate project (RREP), as explained in question No. 6 below, which commences on or after 01.04.2019 or in an ongoing project in respect of which the promoter has opted for new rate effective from 01.04.2019.

5% without ITC on total consideration

Construction of commercial apartments in a real estate project (REP), other than residential real estate project (RREP), or in ongoing project in respect of which the promoter has opted for old rate

12% without ITC on total consideration

……………………………

F. No. 354/32/2019-TRU (For full text refer to www.cbic.gov.in)

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Notification No. 9/2019- Integrated Tax (Rate) dated 10.05.2019

G.S.R......(E).- In exercise of the powers conferred by sub-sections (1), (3) and (4) of section 5, sub-section (1) of section 6 and clauses (iii), (iv) and (xxv) of section 20 of the Integrated Goods and Services Tax Act, 2017 (13 of 2017) read with sub-section (5) of section 15, sub-section (1) of section 16 and section 148 of the Central Goods and Services Tax Act, 2017 (12 of 2017), the Central Government, on the recommendations of the Council, and on being satisfied that it is necessary in the public interest so to do, hereby makes the following further amendments in the notification of the Government of India, in the Ministry of Finance (Department of Revenue), No. 8/2017- Integrated Tax (Rate), dated the 28th June, 2017, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R. 683(E), dated the 28th June, 2017, namely:-

In the said notification, -

(i) in the Table, against serial number 3, in items (ie) and (if), in the entries in column (5), for the figures and letters “10th ”, wherever they occur, the figures and letters “20th ” shall be substituted;

(ii) in Annexure IV, for the figures and letters “10th ”, at both the places where they occur, the figures and letters “20th” shall be substituted.

[F. No.354/32/2019-TRU]

(Ruchi Bisht)

Under Secretary to the Government of India

Note: - The principal notification No. 8/2017 - Integrated Tax (Rate), dated the 28th June, 2017 was published in the Gazette of India, Extraordinary, vide number G.S.R. 683 (E), dated the 28th June, 2017 and was last amended by notification No. 3/2019-Integrated Tax (Rate), dated the 29th March, 2019 vide number G.S.R. 256 (E), dated the 29th March, 2019.

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Notification No. 10/2019- Union Territory Tax (Rate) dated 10.05.2019

G.S.R......(E).- In exercise of the powers conferred by sub-sections (1), (3) and (4) of section 7, sub-section (1) of section 8, clause (iv), clause (v) and clause (xxvii) of section 21 of the Union Territory Goods and Services Tax Act, 2017 (14 of 2017), read with sub-section (5) of section 15, sub-section (1) of section 16 and section 148 of the Central Goods and Services Tax Act, 2017 (12 of 2017), the Central Government, on the recommendations of the Council, and on being satisfied that it is necessary in the public interest so to do, hereby makes the following

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further amendments in the notification of the Government of India, in the Ministry of Finance (Department of Revenue) No.11/2017- Union Territory Tax (Rate), dated the 28thJune, 2017, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R. 702(E), dated the 28thJune, 2017, namely:-

In the said notification, -

(i) in the Table, against serial number 3, in items (ie) and (if), in the entries in column (5), for the figures and letters “10th ”, wherever they occur, the figures and letters “20th ” shall be substituted;

(ii) in Annexure IV, for the figures and letters “10th ”, at both the places where they occur, the figures and letters “20th” shall be substituted.

[F. No.354/32/2019-TRU]

(Ruchi Bisht)

Under Secretary to the Government of India

Note: -The principal notification No. 11/2017 - Union Territory Tax (Rate), dated the 28th June, 2017 was published in the Gazette of India, Extraordinary, vide number G.S.R. 702 (E), dated the 28th June, 2017 and was last amended by notification No. 3/2019- Union Territory Tax (Rate), dated the 29th March, 2019 published vide number G.S.R. 262 (E), dated the 29th March, 2019.

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Notification No. 10/2019-Central Tax (Rate) dated 10.05.2019

G.S.R......(E).- In exercise of the powers conferred by sub-sections (1), (3)and (4) of section 9, sub-section (1) of section 11, sub-section (5) of section 15, sub-section (1) of section 16 and section 148 of the Central Goods and Services Tax Act, 2017 (12 of 2017), the Central Government, on the recommendations of the Council, and on being satisfied that it is necessary in the public interest so to do, hereby makes the following further amendments in the notification of the Government of India, in the Ministry of Finance (Department of Revenue) No.11/2017- Central Tax (Rate), dated the 28thJune, 2017, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R. 690(E), dated the 28thJune, 2017, namely:-

In the said notification, -

(i) in the Table, against serial number 3, in items (ie) and (if), in the entries in column (5), for the figures and letters “10th ”, wherever they occur, the figures and letters “20th ” shall be substituted;

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(ii) in Annexure IV, for the figures and letters “10th ”, at both the places where they occur, the figures and letters “20th” shall be substituted.

[F. No.354/32/2019-TRU]

(Ruchi Bisht)

Under Secretary to the Government of India

Note: -The principal notification No. 11/2017 - Central Tax(Rate), dated the 28thJune, 2017 was published in the Gazette of India, Extraordinary, vide number G.S.R. 690 (E), dated the 28th June, 2017 and was last amended by notification No.3/2019-Central Tax (Rate), dated the 29th March, 2019, published vide number G.S.R. 250(E), dated the 29th March, 2019.

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[To be published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i)]

Notification No. 23/2019 – Central Tax dated 11.05.2019

G.S.R.....(E).– In exercise of the powers conferred by the second proviso to sub-section (1) of section 37 read with section 168 of the Central Goods and Services Tax Act, 2017 (12 of 2017), the Commissioner, on the recommendations of the Council, hereby makes the following amendment in the notification of the Government of India in the Ministry of Finance (Department of Revenue), No. 12/2019- Central Tax, dated the 07th March, 2019, published in the Gazette of India, Extraordinary, Part II, Section 3, sub-section (i) vide number G.S.R. 194(E), dated the 07th March, 2019, namely:– In the said notification, in the first paragraph, the following proviso shall be inserted, namely:– “Provided that the details of outward supply of goods or services or both in FORM GSTR-1 of the Central Goods and Services Tax Rules, 2017 for the month of April, 2019 for registered persons whose principal place of business is in the districts of Angul, Balasore, Bhadrak , Cuttack , Dhenkanal , Ganjam, Jagatsinghpur, Jajpur, Kendrapara, Keonjhar, Khordha, Mayurbhanj, Nayagarh and Puri in the State of Odisha shall be furnished electronically through the common portal, on or before the 10th June, 2019.”

[F.No.20/06/17/2018 - GST] (Gunjan Kumar Verma)

Under Secretary to the Government of India Note:- The principal notification No. 12/2019- Central Tax, dated the 07th March, 2019 was published in the Gazette of India, Extraordinary, vide number G.S.R. 194(E), dated the 07th March, 2019.

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GSTCOUNSELLOR GSTC

[To be published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i)]

Notification No. 24/2019 – Central Tax dated 11.05.2019

G.S.R.....(E).–In exercise of the powers conferred by section 168 of the Central Goods and Services Tax Act, 2017 (12 of 2017) read with sub-rule (5) of rule 61 of the Central Goods and Services Tax Rules, 2017 (hereafter in this notification referred to as the said rules), the Commissioner, on the recommendations of the Council, hereby makes the following amendment in notification of the Government of India in the Ministry of Finance (Department of Revenue), No. 13/2019 – Central Tax, dated the 07th March, 2019, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i) vide number G.S.R.195(E), dated the 07th March, 2019, namely:– In the said notification, in the first paragraph, the following proviso shall be inserted, namely: – “Provided that the return in FORM GSTR-3B of the said rules for the month of April, 2019 for registered persons whose principal place of business is in the districts of Angul, Balasore, Bhadrak , Cuttack , Dhenkanal , Ganjam, Jagatsinghpur, Jajpur, Kendrapara, Keonjhar, Khordha, Mayurbhanj, Nayagarh and Puri in the State of Odisha shall be furnished electronically through the common portal, on or before the 20th June, 2019.”.

[F.No.20/06/17/2018 - GST] (Gunjan Kumar Verma)

Under Secretary to the Government of India Note: - The principal notification No. 13/2019- Central Tax, dated the 07th March, 2019 was published in the Gazette of India, Extraordinary, vide number G.S.R. 195(E), dated the 07th March, 2019.

For text of Notifications / Circulars / Press Releases, please visit www.gstcounsellor.com

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GSTCOUNSELLOR GSTC

Revocation of Cancellation of GST Registration

Extended time limit for filing application for Revocation of Cancellation of Registration v Section 29 (2) of CGST Act, 2017 provides for cancellation of registration by proper

officer under various situations from such date as he may deem fit, including any retrospective date.

v Further, section 30 (1) of CGST Act, 2017 provides for revocation of cancellation of the registration within thirty days from the date of service of the cancellation order.

v Many registered persons could not reply to the notices served under section 29(2) of

Central Goods and Services Tax Act, 2017 resulting in cancellation of registration and were unable to file application for revocation of cancellation of registration under sub-section (1) of section 30 of Central Goods and Services Tax Act, 2017.

v Such registered persons, against Order passed up to 31.03.2019 for cancellation of

registration, are now allowed to file application for revocation of cancellation of the registration but not later than 22.07.2019.

Revocation of Registration- Due Returns to be furnished within 30 days v As per Rule 23 of the Central Goods and Services Tax Rules, 2017 , a registered person,

whose registration is cancelled by the proper officer on his own motion, may submit an application for revocation of cancellation of registration, in FORM GST REG-21 within a period of thirty days from the date of the service of the order of cancellation of registration.

v By amendment in such rule w.e.f. 23.04.2019, in case, registration has been revoked, all returns due for the period from the date of order of cancellation (in case registration has been cancelled from retrospective effect, then from effective date of cancellation of registration) till the date of order of revocation of cancellation of registration shall have to be furnished within a period of thirty days from the date of the order of revocation of cancellation of registration.

DECODING GST LAW

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GSTCOUNSELLOR GSTC

NON REQUIREMENT OF E WAY BILLS (Section- 138)

The requirements of E-way bills shall not be there in the following cases:

• The mode of transport is non-motor vehicle

• Goods transported from Customs port, airport, air cargo complex or land customs

station to Inland Container Depot (ICD) or Container Freight Station (CFS) for clearance

by Customs.

• Goods transported under Customs supervision or under customs seal

• Goods transported under Customs Bond from ICD to Customs port or from one custom

station to another.

• Transit cargo transported to or from Nepal or Bhutan

• Movement of goods caused by defence formation under Ministry of defence as a

consignor or consignee

• Empty Cargo containers are being transported

• Consignor transporting goods to or from between place of business and a weighbridge

for weighment at a distance of 20 kms, accompanied by a Delivery challan.

• Goods being transported by rail where the Consignor of goods is the Central

Government, State Governments or a local authority.

• Goods specified as exempt from E-Way bill requirements in the respective State/Union

territory GST Rules.

• Transport of certain specified goods- Includes the list of exempt supply of goods,

Annexure to Rule 138(14), goods treated as no supply as per Schedule III, Certain

schedule to Central tax Rate notifications. (eg. Petroleum / jewellery / currency /

kerosene / IMFL / Personal effects/ postal bags etc.)

GOODS AND SERVICES TAX UNDERSTANDING

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GSTCOUNSELLOR GSTC

· Provisional assessment in GST – Ramesh Chandra Jena, GSTL, Vol. 24 : Part 1,

dated 02.05.2019. · Establishment of profiteering ‘must’ for contravention of section 171 of GST law

– Dr. Sanjiv Agarwal, GSTL, Vol. 24 : Part 1, dated 02.05.2019. · Appellate jurisdiction of Hon’ble Supreme Court – Article 132 – Manoj Kumar

Jha, ELT, Vol. 366, Part 3, dated 01.05.2019. · Recent Developments in GST - Dr. Sanjiv Agarwal, www.taxguru.co.in, dated

02.05.2019. · Taxability of Marine Consultancy Services - Dr. Sanjiv Agarwal,

www.taxmanagementindia.com, dated 09.05.2019. · Employer to pay GST on canteen facilities for employees – Dr. Sanjiv Agarwal,

Business Advisor, dated 10.05.2019.

GST LITERATURE

1. PROGRAMME : Three Days Advanced Workshop on GST DATE : 10th,11th and 12th May,2019 VENUE : ICAI Bhawan, D.No. 9-36-22-/2, Pithapuram Colony, Maddilapalem,

Visakhapatnam 530003 ORGANISED BY : Visakhapatnam Branch of SIRC of ICAI

CONTACT DETAILS : 0891-2793196, visakhapatnam@icai.org 2. PROGRAMME : Certificate Course on GST DATE : 27th, 28th April 4th, 5th, 11th, 12th, 25th, 26th May 1st and 2nd

June,2019 VENUE : Kolkata ORGANISED BY : EIRC of ICAI CONTACT DETAILS : 033-30211261, eircevents@icai.in

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GSTCOUNSELLOR GSTC

A THOUGHT IN QUOTE!!

“People change and forget to tell each other”. -Lillian Hellman

GST CAPSULE!!

“Modi-Jaitley’s economic model is of ‘nationalization of loss and privatization of profit’. This model has brought distress to every sector, the only exceptions have been the business people close to the BJP.

Macro-economic indicators confirm that the Indian economy has entered a ‘disastrous phase of slowdown.”

- P Chidambaram Former Union Finance Minister

GST HUMOUR!!

GST ! Still a Dream

Congress has been promising many sops in GST to woo voters like never before. For

example, simple returns, lesser returns, petroleum in GST net, single GST rate ….. and

so on. But it comes with a rider – If Congress is voted to power!!

With GST coming to support of Congress, Gabbar Singh Tax could well be Great

Support Tax ……at least for Congress

……till results are out.

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GSTCOUNSELLOR GSTC

NEW TITLES ON GST

COMPENDIUM OF GST CASES (WITH SUMMARY) (in Two Volumes)

Title GST Cases (with Summary)

Authors Dr. Sanjiv Agarwal & CA. Neha Somani

Publication November, 2018 (Second edition)

Publishers Bloomsbury Publishing India Pvt. Ltd.

Price Rs. 3995/-

Pages 2800 +

ANNOUNCEMENTS

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GSTCOUNSELLOR GSTC

The disputes between the revenue and assessees arise out of classification, taxability, rate determination, valuation, refund, export, wrong input credit or any other legal interpretation or even procedural latches including that in e-way bills. With large number of appeals and decided judicial pronouncements, which also provide important and crucial precedence value, it becomes difficult for all stakeholders to keep a track of pronouncements so that they can fall upon them for support, whenever required. Even adjudication becomes easier with the support of binding precedents and covered cases. A majority of the work in judicial pronouncements consists of judicial and statutory interpretation of words, phrases and expressions by judicial forums. Citations of source have been given and the possibility of duplication arising out of reporting at different points of time is not ruled out. The Book is a Case Referencer / Digest of around 550 reported cases on Goods and Service Tax from July, 2017 to September, 2018 and covers cases of Supreme Court, High Courts and Advance Ruling Authority including orders of National Anti-Profiteering Authority. This Compendium of GST cases comes in a set of two volumes and has been divided into five parts. Volume I comprises of Part I containing cases on Constitutional framework and Part II containing cases in 15 chapters on CGST / SGST Acts. Volume II comprises of Part III containing cases in 4 chapters on IGST, Part IV containing cases on Compensation Cess and Part V containing cases on Advance Rulings including Appellate Advance Rulings. The cases can be searched by way of any option – alphabetical index, court wise index, section wise listing or even topic wise. The inclusion of legal maxims used in law add to jurisprudence. Knowledge of maxims is helpful in application of law to specific cases. For the convenience of readers, this case law digest also contains a list of abbreviations. The Highlights of the Book are as under:

· India’s first and only book on judicial pronouncements on GST · Over 550 cases digested and included · Gist as well as full text of cases incorporated · Covers almost all Supreme Court / High Court Cases · Majority of advance rulings pronounced by various state Authority for Advance Rulings and

Appellate Advance Rulings · All Orders of National Anti-profiteering Authority · List of cases arranged – Alphabetically, Topic-wise, Authority-wise and Legislation-Section-wise

for easy search · Multiple citations to cases provided for easy reference · Meaning of important legal maxims used and abbreviations

The Book, though a useful compilation of case laws, orders and rulings on GST, may suffer from time point of view as in a matter of just four months, this is second edition. Given the fast changes, increasing number of judgments and further appeals, the book will have to undergo revision/updation soon. This would mean extra cost to users of the book. Any updation in soft version or e-edition of the book can be thought of. The price of the book appears to be on higher side but can be justified in terms of cost, size and IPR content. This work on GST judicial pronouncements will also be found useful by readers as an organized single source of judicial pronouncements, rulings and orders on provisions of GST Laws.

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GSTCOUNSELLOR GSTC

Title Compendium of Judicial Pronouncements (Relevant under GST Regime) Author Dr. Sanjiv Agarwal Publication February, 2018 Publishers Bloomsbury Publishing India Pvt. Ltd. Price Rs. 1995/- Pages 1150 +

Highlights

· Judicial interpretation of tax laws

· Cases focused on indirect taxes and provisions relevant for Goods & Services Tax (GST)

· Unique digest of over 3600 Judicial Pronouncements relevant for GST

· Covered under 30 Chapters for better comprehension & understanding

· Case laws arranged chronologically alongwith alphabetical index

· Gist of relevant statutory provisions of GST laws at beginning of each Chapter

For any GST related interpretation / queries, please send a mail to asandco@gmail.com

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GSTCOUNSELLOR GSTC

ANNOUNCEMENTS FOR EXCLUSIVE AND IN HOUSE

SEMINAR / WORK SHOP ON

GOODS AND SERVICE TAX (GST) CONDUCTED BY

DR. SANJIV AGARWAL (FCA, FCS) PLEASE CONTACT AT:

asandco@gmail.comascogst@gmail.com

v IF YOU WISH TO SUBSCRIBE TO THIS NEWSLETTER, SEND A REQUEST TO ascogst@gmail.com