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GST COUNSELLOR GSTC

VOLUME: 4 01 MAY, 2018 NUMBER: 13

Dear Readers,

GST collections have shown a mixed trend of ups and down in last 10 months including April

2018 with average monthly tax collection being in the range of Rs. 89000 – 90000 crore. The tax

collections reported for F.Y. 2017-18 (9 months) on provisional basis are at Rs. 7.19 lakh crore

including compensation cess. This includes Rs. 1.19 lakh crore of CGST, Rs. 1.72 lakh crore of

SGST, Rs. 3.66 lakh crore of IGST and Rs. 62021 crore of cess. The compliance levels have also

gone up for return filing upto 90 percent. However, there are state wise variations in compliance

level.

According to the latest MOF release, the total gross GST revenue collected in the month of April

2018 is Rs.1,03,458 crore of which CGST is Rs,18r652 crore, SGST is Rs.25,704 crore, IGST is

Rs. 50,548 crore (including 21,246 crore collected on imports) and Cess is Rs.8554 crore

(including Rs.702 crore collected on imports). The total revenue earned by Central Government

and the State Governments after settlement in the month of April, 2018 is Rs.32,493 crore for

CGST and Rs.40,257 crore for the SGST.

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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GST COUNSELLOR GSTC

The buoyancy in the tax revenue of GST reflects the upswing in the economy and better

compliance. However, it is usually noticed that in the last month of financial year, people also try

to pay arrears of some of the previous months also and, therefore, this month's revenue cannot be

taken as trend for the future.

On petrol and diesel, while there does not seem to be any scope for bringing these products under

the ambit of GST now, the prices continue to soar high. Also, there is no hope for cut in excise

duty as the current prices does not trigger the same. The central government levies Rs 19.48 a

litre of excise duty on petrol and Rs 15.33 per litre on diesel. State sales tax or VAT vary from

state to state.

Currently, exhibition of cinema is taxed @ 28% which is the highest GST bracket. The industry is

demanding a rate of 18% which was also the effective rate in pre-GST regime. The industry also

does not get a set off from state taxes like land, building and entertainment tax (LBET). This rate

of 28% is at par with casinos, gambling, racing activities and 10% higher than on amusement

parks, water parks etc.

This is what people are talking now a days. Who says, GST is difficult and hard! Government is

very considerate, liberal, flexible and taxpayer friendly. The record says so if one looks at the

concessions doled out by GST Council so far before various state elections. With exactly a year

left from next general elections and state elections in 2018 in Karnataka, Rajasthan, Madhya

Pradesh and Chhattisgarh, we may expect a liberal tax regime in next one year till May, 2019.

That will also indicate of a distorted GST tax law and implementation in next 2-3 years without

any clarity on tax policies which will adversely impact businesses and new investments into India,

particularly in manufacturing sector.

GST Council shall be meeting on 4th May, 2018 for its 27th meeting after a gap of about two

months. The meeting is expected to be crucial ahead of Karnataka State elections and first

meeting in current fiscal 2018-19. The Council is likely to decide upon simplification and

rationalization of GST returns and GSTN systems and procedures. The number of returns and

frequency thereof may also be reduced. The Group of Ministers have already submitted its

recommendations. The implementation of e-way bills may also be reviewed.

DATE: 01.05.2018 DR. SANJIV AGARWAL

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GST COUNSELLOR GSTC

v New Facilities on GST Portal

· The GST Common Portal has added two important functionalities including Form

GST ARA-01, an electronic form for Advance Ruling [Rule 104(1) of CGST Rules,

2017] and Form GST REG-21, for application for revocation of cancellation of

registration[Rule 23(1) of CGST Rules, 2017].

· Form to apply for advance ruling will enable an applicant to make an application for

obtaining advance ruling on the GST Portal on payment of fees amounting to Rs.

5000/-.

· Form to apply for revocation of cancellation of registration will enable taxpayers

whose registration has been cancelled, via suo moto cancellation route, to apply for

revocation of their cancellation of registration.

v Statement Upload Functionality in RFD-01A

· As per existing refund workaround implementation, refund application RFD-01A is

filed by taxpayer, without any facility for statement upload.

· The refund application is filed on a summary level and taxpayer approaches refund

processing officer with details. Refund processing officer, based on the details

provided by the taxpayer, manually processes the refund claim and updates the

refund claim status through RFD-01B on the online portal.

· A functionality of uploading the statement by the taxpayer, while filing refund

application in Form GST RFD-01A, has now been provided.

· The refund processing officer can view and download this statement in CSV format,

with the refund application in RFD-01B.

v Recording of UIN on invoices

· Unique Identification Number (UIN) is a 15-digit unique number allotted to any

specialized agency of the United Nations Organization or any Multilateral Financial

Institution and Organization notified under the United Nations (Privileges and

Immunities) Act, 1947, Consulate or Embassy of foreign countries. First two digits

of the UIN denotes State code where such entity is located.

GOODS AND SERVICES TAX UPDATE

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GST COUNSELLOR GSTC

· It may be noted that supply to Foreign Diplomatic Missions / UN Organizations is

like any other Business to Consumer (B2C) supply and will not have any additional

impact on the supplier’s tax liability

· Recording of UIN while making such supplies by the suppliers will enable Foreign

Diplomatic Missions / UN Organizations to claim refund of the taxes paid by them

in India. Therefore, it is advised that suppliers should record the UIN of the

Embassies / Missions / Consulates or UN organizations on the tax invoice.

· Further, as per Circular No. 43/17/2018-GST dated 13.04.2018 recording of UIN

on the invoice is a necessary condition under rule 46 of the CGST Rules, 2017. If

suppliers / vendors are not recording the UIN, action may be initiated against them

under the provisions of the CGST Act, 2017.

v Implementation of E-way bill System for intra-state movement of goods

· E-Way Bill system for intra-State movement of goods would be implemented from

25th April, 2018 in the following States/ Union Territory:-

(i) Arunachal Pradesh

(ii) Madhya Pradesh

(iii) Meghalaya

(iv) Sikkim

(v) Puducherry

· Maharashtra is likely to implement e-way bill system w.e.f. 1st May, 2018.

v CBIC Clarification regarding ‘Bill To-Ship To’ concept in E-way bill system

· Meaning of ‘Bill To-Ship To’:

Sometimes taxpayer raises bill to somebody and sends consignment to

somebody else as per the business requirements, eg, A ordered B to send

goods directly to C on his (A) behalf. There is a provision in the E-way Bill

system to handle such situation which is called Bill To-Ship To.

· CBIC has provided the way to tackle such situation vide a press release dated

23.04.2018 by way of an example:

In the above situation either A or B can generate e-way bill, but it may be

noted that only one e-Way Bill is required to be generated as per the following

procedure:

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GST COUNSELLOR GSTC

Two invoices shall be raised one (I-1) by B on A and second (I-2) by A on C

In Part A of GST FORM EWB-01

When e-way bill is generated

by A

When e-way bill is generated

by B

Bill From In this field details of A are

supposed to be filled.

In this field details of B are

supposed to be filled

Dispatch

From

This is the place from where

goods are actually dispatched.

It may be the principal or

additional place of business of

B.

This is the place from where

goods are actually dispatched.

It may be the principal or

additional place of business of

B.

Bill To In this field details of C are

supposed to be filled.

In this field details of A are

supposed to be filled.

Ship To In this field address of C is

supposed to be filled.

In this field address of C is

supposed to be filled.

Invoice

details

Details of I-2 are supposed to

be filled

Details of I-1 are supposed to

be filled

(Source: CBIC Press Release dated 23.04.2018)

Goods and services tax (GST) collections averaged just under Rs 90,000 crore a month in the first eight months after the rollout of the levy, adding up to Rs 7.19 lakh crore in the year ended March amid a steady improvement in compliance. Analysts said collections were below estimates but the phased introduction of a key component will boost revenue from the indirect tax.

GOODS AND SERVICES TAX

GST ADDED RS 90,000 CRORE A MONTH TO GOVT KITTY IN FY18

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GST COUNSELLOR GSTC

The average monthly collection under GST for FY 2017-18 was around Rs 90,000 crore, implying a deficit of approximately 24% in reference to the estimations for 2018-19. While the deficit is apparently perturbing, it is expected to be reduced with e-way bills in place and possible introduction of other anti-evasion measures such as TDS/TCS (tax deducted at source/tax collected at source), credit matching, etc. Domestic collections are for the July 2017-February 2018 period while those on imports are for nine months including March 2018. While the tax on domestic supplies in a month is collected through the process of returns and gets collected in the next month, IGST (integrated GST) and cess on imports gets collected in the same month. GST on domestic supplies has been collected for eight months from August 2017 to March 2018, while IGST and the cess on imports have been collected for nine months, from July 2017 to March 2018.

(SOURCE: ECONOMIC TIMES DATED 28.04.2018) Collections from the levy of the Goods and Services Tax (GST) stood at a provisional Rs.7.41-lakh crore for the year ended March 31. The GST regime was rolled out on July 1, 2017, and therefore the total tax mop-up pertains to the nine-month period from July 2017 to March 2018. A statement from the Finance Ministry said the total GST revenue collected between August 2017 and March 2018 was Rs.7.19-lakh crore. “For (these) eight months, the average monthly collection has been Rs.89,885 crore. This collection includes Rs.1.19-lakh crore of Central GST, Rs.1.72-lakh crore of State GST and Rs.3.66-lakh crore of Integrated GST.

The Integrated GST collections include the Rs.1.73-lakh crore tax on imports and Rs.62,021 crore of cess. The SGST collection during the year, including the settlement of IGST, has been Rs.2.91-lakh crore and the total compensation released to the States Rs.41,147 crore. The compensation is to ensure that the revenue of the States is protected at the level of 14 per cent over the base-year tax collection in 2015-2016. The revenue gap of each State is coming down over (the) last eight months. The average revenue gap of all States for last year is around 17 per cent.

The Finance Ministry also noted that there has been “a progressive improvement” in the compliance level observed during the course of the year. In July 2017, the portion of GST returns filed on time stood at 57.69 per cent. This improved to 66.81 per cent by December 2017 but dipped to 62.63 per cent in March 2018.

The cumulative compliance levels (percentage of returns filed till date) for initial months has crossed 90 per cent and for July 2018, has reached 96 per cent. There are State-wise variations in the compliance level observed till due date. However, including delayed filings, the State-wise compliance levels converge over a period of time. Currently, there is stability in law for the past three months and the compliance level has also increased. With the GSTN system working smoothly and no hindrances for generating e-way bills, the compliance level should increase further, he added. “With many States also introducing the intra-State generation of e-way bills for movement of goods, evasion is bound to reduce and increase the revenue.

(SOURCE: BUSINESS LINE DATED 28.04.2018)

GST COLLECTIONS FOR 2017-18 AT RS. 7.41-LAKH CRORE

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GST COUNSELLOR GSTC

Government has made 376 changes in the Goods and Services Tax (GST) since its inception in July last year by amending rules, issuing clarifications and circulars related to refund, exemption and rates, Export Promotion Council for EOUs & SEZs (EPCES). The Government has made 376 changes to the tax system by issuing circulars and coming out with clarifications about change in rates or exemptions. Of these, 73 changes are related with exemption and 65 with rates. Exporters flagged concerns related to refunds, exemption of GST, classification of Goods and services and place of supply for service exports and GST Network at the meeting. Complaining that delay in GST refund has blocked their working capital, exporters have claimed that over 60% of their refunds are stuck with the government. The government has sanctioned GST refunds to exporters to the tune of Rs 17,616 crore till March. They also discussed the option for SEZ units to claim refund of the GST charged by suppliers. At present, a supplier can provide goods and services to units in SEZ under a legal undertaking or LUT without payment of IGST, alternately they can reclaim the refund. Many suppliers do not want to go for LUT or refund process and charging GST in their invoice which is a cost burden for SEZ Unit. Under the existing law, there is no option for SEZ unit to claim the refund of the same. We have also suggested to treat SEZ as outside India (deemed foreign territory) for the purpose of place of supply rule under IGST for service export. Exporters also said that the rules are in English which makes it difficult for those who are not well versed with the language to understand and comply with the norms, especially in far flung areas.

(SOURCE: ECONOMIC TIMES DATED 25.04.2018)

Businesses in post-GST India are learning that an elementary typographical error while punching in their 15-digit GST identification number (GSTIN) can prove taxing. The GSTIN is used as an ID for all companies registered under the GST, and has to be furnished for various transactions. But keying in the alphabet ‘O’ in place of the numerical ‘0’, for instance, can delay and create confusion in claiming input tax credits. The small typo errors are causing large-enough inconveniences for a top industry official to suggest that the GSTIN should drop the letters O and I, and the numbers 0 and 1 in order to avert confusion. That’s because the alphabet ‘I’ is often mistaken for the numerical ‘1’ and the alphabet ‘O’ is mistaken as ‘0’ (zero). A simple way to lower such error rates could be to rework the GSTIN number. These two alphabets and numbers tend to create havoc. To do away with such potential cases, it is better to have 24 alphabets and 8 numbers in the GSTIN number. Another industry official said the idea had been orally communicated to the GST Council. The typographical problem is serious enough that the Indian Railways took note of it earlier this month. Admitting to a

ALPHABET SOUP TYPOS IN GST ID ARE TAXING BUSINESSES

GOVERNMENT MADE 376 CHANGES RELATED TO GST IN 10 MONTHS: EXPORT PROMOTION COUNCIL FOR SEZS

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GST COUNSELLOR GSTC

number of cases of wrong reporting of GSTIN number, the public carrier devised a web-based solution to claim input tax credits that have remained stuck due to erroneous entries. The Railways IT arm, CRIS, has built a software module and authorised officials in the divisions and zones to replace the wrongly typed GSTIN with the correct numbers. This can be done for a transaction that has already been carried out against a particular tax invoice. These are cases where the GST portal has rejected the return process because the GSTIN did not match. The issue is even more complex for roads because the sector is largely unorganised, and many players do not have IT systems in place, which makes it a challenge to match documents. However, a Railways official said these were teething troubles, which were inevitable during a technology upgrade. These errors will come down significantly once the numbers have been correctly fed into a database. In fact, similar teething troubles are cropping up in the implementation of the e-way bill, which aims to prevent tax evasion by tracking the movement of goods and involves punching in multiple numbers, including the GSTIN. Vice Chairman and MD, Apollo Logistics, told Business Line, Although the e-way bill is generated automatically, data input is done manually by front-end staff. While moving goods inter-State you have to key in the same number a couple of times in different places. An extra space here or a dash there... those kind of errors are possible until we automate all that or all invoices are bar coded.

(SOURCE: BUSINESS LINE DATED 25.04.2018)

Assam's experience with the ambitious GST has not been good as collections have dropped by 15-20 per cent on month-on-month basis, Chief Minister said. The experience of GST till now has not been encouraging. There is an estimated 15-20 per cent loss when collections are compared with expected revenue on month to month basis. Appealing the Commission to consider this aspect so that Assam does not suffer, he hoped that the situation will improve in future with introduction of e-way bill among others.

The revenue collection of various taxes under the State Government have shown an average increase of around 20 per cent annually in the last two years other than GST. It was possible because of better system and controlling corruption. He informed that the taxes subsumed under GST formed about 60 per cent of the state's tax revenue and 50 per cent of its own revenue.

Assam's budget expenditure has gone up to Rs 70,000 crore in 2017-18 from Rs 42,000 crore in 2015-16, while the capital expenditure jumped to Rs 12,800 crore from Rs 4,900 crore in the same period. Assam got reduced share of central taxes under the recommendations of the

TAX COLLECTIONS DOWN BY 15-20% DUE TO GST: ASSAM CM

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GST COUNSELLOR GSTC

14th Finance Commission on account of various reasons. Assam has significantly lower per capita income compared with national average and poor socio economic indicator.

The Chief Minister urged the Commission, who is on a two-day visit to the state, to consider the efforts in controlling flood and erosion as the top priority. Stating that Assam faces challenges from insurgency and radical elements. This requires strengthening and modernisation of police infrastructure. This area has suffered due to absence of any grant in the last Finance Commission recommendations.

(SOURCE: BUSINESS STANDARD DATED 27.04.2018)

Does your employer have a mess or a canteen and is it operated through ‘outdoor catering’? The catering industry, food coupon providers and companies providing food and beverages to employees are struggling with this question under the goods and services tax (GST) as the levy ranges from 5% to 18% depending on the answer.

Outdoor catering attracts 18% GST, while canteen services face 5%. The levy on supply of food or beverages by facilities such as a mess or canteen was reduced to 5% in November. The confusion arises as food, for instance, isn’t necessarily prepared onsite but supplied by a caterer.

Different tax rates are currently being applied by service providers in the industry, leading to disputes with customers and revenue losses being sustained by organised players that have taken a typically conservative position and charge GST at the higher rate of 18%. Industry has now made a representation to the finance ministry and the GST Council, seeking resolution of the issue. Canteen supplies in any organization by self or by third-party contractors have been treated as outdoor catering in the service tax regime and the tax was paid accordingly. However, clarity is required on such supplies in the GST regime given that industry is not clear whether to charge 18% as outdoor catering or 5% without credit as in the case of a restaurant.

Typically, commercial establishments or institutions such as factories, educational institutions and offices provide food and beverages to employees and students within a designated area, a canteen or cafeteria, within its premises.

(SOURCE: ECONOMIC TIMES DATED 27.04.2018)

CATERERS, CANTEENS SEEK CLARITY ON GST

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GST COUNSELLOR GSTC

Due dates of various filings in May, 2018

§ In Aphro E-commerce Solutions (P.) Ltd. v. Union of India [2018] 91 taxmann.com 192 (Delhi), the petitioner was a web developer and IT software solution services provider in the international and domestic market and prior to the implementation of the Integrated Goods and Service Tax Act, 2017 ('IGST Act'), there was no service tax on the export of services provided by the Petitioner. However, post the IGST Act, the export services provided by the Petitioner are covered under 'zero rated supply' under Section 16(1)(a) of the IGST Act, it was held that in order to avail of the input tax credit, the Petitioner, being a new entrepreneur with an export turnover of less than Rs.1 crore per annum, has to necessarily furnish a bond with a bank guarantee.

§ In Rajeevan V.N. v. Central Tax Officer-1 Circle, Cochin [2018] 91 taxmann.com 195 (Kerala), where application preferred by petitioner for registration under the GST Act, 2017 had been rejected on ground of certain discrepancies in documents submitted by him along with application for registration, it was held that same ought to be considered by the authorities if fresh application with requisite documents are filed by the petitioner.

S.No. Return/Form Period Due Date

1. GSTR-1 (Monthly)

(for turnover > Rs. 1.5 crore)

March,2018 10th May, 2018

April, 2018 31st May, 2018

2. GSTR 3B April, 2018 20th May, 2018

3. GSTR-6 (ISD return)

July, 2017 to April, 2018

31st May, 2018

GST CASE LAWS

OBLIGATIONS UNDER GOODS AND SERVICES TAX

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GST COUNSELLOR GSTC

PRESS NOTE

GST Revenue collection for April 2018 exceeds Rs. 1 lakh crore

The total gross GST revenue collected in the month of April 2018 is Rs.1,03,458 crore of which

CGST is Rs,18r652 crore, SGST is Rs.25,704 crore, IGST is Rs. 50,548 crore (including 21,246

crore collected on imports) and Cess is Rs.8554 crore (including Rs.702 crore collected on

imports). The total number of GSTR 3B Returns filed for the month of March up to 30"1 April,

2013 is 60.47 lakh as against 87.12 lakh, who are eligible to file the Return for the month of

March, which is 69.5%. April was also the month for filing of quarterly Return for composition

dealers. Out of 19.31 lakh composition dealers, 11.47 lakh have filed their quarterly return

(GSTR 4) which is 59.40% and have paid total tax of Rs.579 crores, which is included in the

above figure of Rs.1.03 lakh crore of total GST collection.

2. The buoyancy in the tax revenue of GST reflects the upswing in the economy and better

compliance. However, it is usually noticed that in the last month of financial year, people also

try to pay arrears of some of the previous months also and, therefore, this month's revenue

cannot be taken as trend for the future.

3. The total revenue earned by Central Government and the State Governments after

settlement in the month of April, 2018 is Rs.32,493 crore for CGST and Rs.40,257 crore for the

SGST.

= = = = = = = =

GOODS AND SERVICES TAX : FROM THE GOVERNMENT

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GST COUNSELLOR GSTC

Circular No. 43/17/2018-GST dated 13.04.2018

F. No. 349/48/2017-GST Subject: Queries regarding processing of refund applications for UIN agencies The Board vide Circular No. 36/10/2017 dated 13th March, 2018 clarified and specified the detailed procedure for UIN refunds. After issuance of the Circular, a number of queries and representations have been received regarding the processing of refund to agencies which have been allotted UINs. In order to clarify some of the issues and to ensure uniformity in the implementation of the provisions of the law across field formations, the Board, in exercise of its powers conferred under section 168 of the Central Goods and Services Tax Act, 2017 (hereinafter referred to as “CGST Act”) hereby clarifies the following issues: 2. Providing statement of invoices while submitting the refund application: 2.1. The procedure for filing a refund application has been outlined under rule 95 of the Central Goods and Services Tax Rules,2017 (hereinafter referred to as „the CGST Rules‟) which provides for filing of refund on a quarterly basis in FORM RFD-10 along with a statement of inward invoices in FORM GSTR-11. It has come to the notice of the Board that the print version of FORM GSTR-11 generated by the system does not have invoice-wise details. Therefore, it is clarified that till the system generatedFORM GSTR-11 does not have invoice-level details, UIN agencies are requested to manually furnish a statement containing the details of all the invoices on which refund has been claimed, along with refund application. 2.2. Further, the officers are advised not to request for original or hard copy of the invoices unless necessary. 3. No mention of UINs on Invoices: 3.1. It has been represented that many suppliers did not record the UINs on the invoices of supplies of goods or services to UIN agencies. It is hereby clarified that the recording of UIN on the invoice is a necessary condition under rule 46 of the CGST Rules, 2017. If suppliers / vendors are not recording the UINs, action may be initiated against them under the provisions of the CGST Act, 2017. 3.2. Further, in cases where, UIN has not been recorded on the invoices pertaining to refund claim for the quarters of July – September 2017, October – December 2017 and January – March 2018, a one-time waiver is being given by the Government, subject to the condition that copies of such invoices will be submitted to the jurisdictional officers and will be attested by the authorized representative of the UIN agency. Field officers are advised that the terms of Notification No. 16/2017-Central Tax (Rate) dated 28th June 2017 and corresponding notifications under the Integrated Goods and Services Tax Act, 2017, Union Territory Goods and Services Tax Act, 2017 and respective State Goods and Services Tax Acts should be satisfied while processing such refund claims. 4. It is requested that suitable trade notices may be issued to publicize the contents of this circular. 5. Difficulty, if any, in implementation of the above instructions may please be brought to the notice of the Board. Hindi version would follow.

(Upender Gupta) Commissioner (GST)

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

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GST COUNSELLOR GSTC

ANTI-PROFITEERING LAW IN GST

Meaning of Anti-Profiteering

Section 171 of CGST Act, 2017 provides that "Any reduction in rate of tax on any supply of

goods or services or the benefit of input tax credit shall be passed on to the recipient by way of

commensurate reduction in prices." i.e. it is mandatory to pass on the benefit due to reduction in

rate of tax or from input tax credit to the consumer by way of commensurate reduction in

prices.

S.No Legal Maxim Meaning 1. Et cetera Other things of that type

2. Functus officio A term applied to something which once has had a life

and power, but which has become of no virtue

whatsoever.

3. In loco parentis In place of the parent; used to refer to a person or

entity assuming the normal parental responsibilities

for a minor

4. Inter - alia Amongst other things

5. Interim Temporary, in the meanwhile

DECODING GST LAW

LET’S LEARN LEGAL MAXIMS

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GST COUNSELLOR GSTC

Scope of Anti-Profiteering Clause

As per section 171 of the CGST/SGST Act, any reduction in rate of tax on any supply of goods

or services or the benefit of input tax credit shall be passed on to the recipient by way of

commensurate reduction in prices. An authority may be constituted by the government to

examine whether input tax credits availed by any registered person or the reduction in the tax

rate have actually resulted in a commensurate reduction in the price of the goods or services or

both supplied by him.

Section 171 provides for administration of anti-profiteering measure, which inter-alia, include

the following:

· To be administered by Central Government

· By a new Authority (National Anti-profiteering Authority)

· Commensurate reduction in prices

® Due to Input Tax Credit (ITC)

® Due to reduction in cost

· May impose penalty for not passing benefit to customers

· Penalties may be levied

National Anti Profiteering Authority

· The National Anti-profiteering Authority shall be responsible for applying anti-

profiteering measures. It shall be headed by a senior officer of the level of a Secretary to

the Government of India and shall have four technical members from the Centre and/or

the States.

· It will work in a three-tier structure - a Standing Committee on Anti profiteering as well

as State-level Screening Committees.

· Powers of Authority

® To make company reduce the prices.

® To make company refund the money to the consumer alongwith interest @ 18% p.a.

® To order company to deposit the refund amount in the Consumer Welfare Fund (in

case the buyer is not identifiable).

® To impose monetary penalty equivalent to amount involved in undue profiteering.

® To cancel registration of the assesse

· Order of Authority has to be complied with immediately.

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GST COUNSELLOR GSTC

Sunset clause for anti-profiteering clause

Rule 122 on anti-profiteering measures provide for a sunset clause. The rules framed for anti-

profiteering indicate that it would operate for a period of only two years. Thus, it would cease to

exist after two years of being in force.

SOME MISCELLANEOUS PROVISIONS IN GST

Service of Notice in certain Circumstances Various methods of service of any decision, notice, order, summon or any other communication under the Act or Rules have been provided in section 169, are as follows: (a) By giving or tendering it directly or through a messenger or courier to the addressee or the

taxable person or to his manager or to person duly authorized or an advocate or a tax practitioner holding authority to appear in the proceeding on behalf of the taxpayer or to a person regularly employed by him in connection with the business, or to any adult member of family residing with the taxpayer, or

(b) By registered post or speed post or courier with acknowledgement due, to the person for whom it is intended or his authorised agent, if any at his last known place of business or residence, or

(c) By sending a communication to his e-mail address, provided at the time of registration or as amended from time to time or

(d) By making it available on common portal, or (e) By publication in a newspaper circulating in the locality of taxpayer or the person to whom

it is issued is last known to have resided, carried on business or personally worked for gain, or

(f) If none of the above is practicable, by affixing it in some conspicuous place on his last known place of business or residence address, or

(g) If such affixing is also not practicable, by affixing a copy thereof on the notice board of the officer who has passed such decision or order or issued such summons or notice.

Every decision, order, summon, notice or any communication shall be deemed to have been served on the date on which it is tendered or published or a copy thereof is affixed in the manner as above.

GOODS AND SERVICES TAX UNDERSTANDING

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GST COUNSELLOR GSTC

As per section 169(3) of the GST Act, when such communication is sent by registered post or speed post, it shall be deemed to have been received by the addressee at the expiry of the period normally taken by a registered/speed post letter in transit unless contrary is proved. Rounding off of Tax etc Section 170 of the GST Act provides that any tax, interest, penalty or any other sum payable and the amount of refund will be rounded off to the nearest rupee. If part is fifty paisa or more, it will be rounded off as one rupee otherwise it will be ignored. Example: The taxable value of the item is INR 167/- GST @ 18% charged on this amount calculates to INR 24.66. GST is required to be rounded off to nearest rupee. Therefore, INR 24.66 will be rounded of and GST will be deemed to be INR 25/-.

PROGRAMME : Two Day National Conference

DATE : 1st & 2nd June, 2018

VENUE : IMA House, Kochi.

CONTACT : academic@kochiicai.org

ORGANISED BY : Indirect Taxes Committee of ICAI & Ernakulam Branch of SIRC of

The Institute of Chartered Accountants of India

Speaker

Topic

CA. Madhukar N Hiregange Chairman, Indirect Taxes Committee of ICAI

GST Audit

Adv. V.Raghuraman Input tax credit provisions, documentation and accounting

Adv. K. Vaitheeswaran

E way bill with specific emphasis on Interception

CA. Bimal Jain Comprehensive coverage on Returns including proposed changes

Dr. Sanjiv Agarwal Anti profiteering law and compliance rating and recent case laws in GST

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GST COUNSELLOR GSTC

GST HUMOUR!!

GST Promises

Two MP’s were heard talking : Congress : If we are voted back to power, we will simplify GST and reduce tax rates drastically. BJP : But that may not happen. Congress : What ! Our coming back to power ? BJP : Yes, you will not come back because whatever you are promising, we are implementing now itself.

· Regulated sale of liquor by Government Corporation is not a service – Dr. Sanjiv Agarwal, Business Advisor, dated 25.04.2018.

· Recent pronouncements on GST (Part-VIII) – Dr. Sanjiv Agarwal, www.taxguru.co.in, dated 25.04.2018.

· First 9 months of GST yielded Rs. 7.41trillion – Dilasha Seth, Business Standard, dated 28.04.2018.

· Concept of input service distribution in GST - Dr. Sanjiv Agarwal, www.taxmanagementindia.com, dated 28.04.2018.

· Carmakers making a switch to one nation – one price – Ajay Modi, Business Standard, dated 30.04.2018.

· GST : Taxing Times – Mohan Lavi, Business Line, dated 01.05.2018.

GST LITERATURE

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GST COUNSELLOR GSTC

QUOTE OF THE FORTNIGHT!!

“Ability is a good thing, but stability is even better. The only reason

why the earth has gravity..! Is to remind us to keep our feet on the

ground in all situations of our life”.

GST CAPSULE!!

“Indirect subsidy/impact comes, if crude oil prices reach a certain level

(and) there might by some rethink about excise duty etc. That’s not

happened so far. …..If the level (of prices now) does not go up, there is no

reason (for excise duty cut).”

- Subhash Chandra Garg, Secretary,

Department of Economic Affairs,

Government of India

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GST COUNSELLOR GSTC

NEW TITLE ON GST by

Dr. Sanjiv Agarwal

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 +

ANNOUNCEMENTS

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GST COUNSELLOR GSTC

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 along with alphabetical index · Gist of relevant statutory provisions of GST laws at beginning of each Chapter

About the Book

A comprehensive digest of judicial pronouncements on indirect taxes relevant to Goods and Services Tax (GST) covering important and landmark case laws, pronouncements of Tribunal, High Courts and Supreme Court of India including foreign cases. One its own kind, this digest has been divided into thirty chapters covering almost entire gamut of GST laws brought into force from 1st July, 2017. A separate chapter exclusively digests most of the judicial pronouncements delivered by various High Courts on Goods & Service Tax so far. The gist or extracts of statutory provisions of CGST Act / UTGST Act/ SGST / IGST Act have also been provided at the beginning of each Chapter to provide the relevant law pertaining to the Chapter and erstwhile provisions, if relevant. Since the principles of interpretation remain the same, the work provides sound and legal basis to understand and interpret the GST laws. The book also contains alphabetical index of case laws digested, besides meaning of important legal maxims generally used.

Key Features

· Interpretations useful to understand GST laws · Covers principles of interpretation of tax laws · Useful interpretation of various terms / phrases / expressions used in tax laws · Multiple citations of cases reported · Special chapter on GST cases reported so far · Relevant and important cases reported upto January, 2018 digested · Meanings of legal maxims

It is hoped that the Book shall be found useful by professionals, tax payers, industry bodies and all other stakeholders in GST. For any GST related interpretation / queries, please send a mail to asandco@gmail.com

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GST COUNSELLOR 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.com ascogst@gmail.com

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