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Showing posts from 2019

IT support & maintenance services are to be classified in code 99831

Recently AAR gave an important ruling dated  19th September 2019, regarding classification of service code under GST on supply  of IT support & maintenance service in a case of GDC Dimension Data (P.) Ltd. [2019] 110 taxmann.com 228 (AAR - KARNATAKA) which is discussed as below:

Facts of the case The applicant is a 100% subsidiary of Dimension Data Asia Pacific Pte Ltd (DDAPPL) based in Singapore. The applicant is engaged in providing various  IT Technical and Support Services and IT Managed Services to its group entities located outside India.The Support services  include the support of software products and also hardware products. Some of the plans include support of the entire infrastructure (especially Pro-active support services). The Managed Services are related to the management of Data Centres, Storage infrastructures, Networks and Communication infrastructures. These services also remotely manage security systems or provide …

18% GST applicable on works contract to Airport Authority of India

AAR gave an important ruling dated 16th September,2019 regarding applicable rate of GST on construction of new civil structures for airport authority India in case of Vishal Infrastructure ltd. [2019] 110 taxmann.com 202 (AAR-KARNATAKA) which is discussed as below:

Facts of the Case The applicant is engaged in works contract relating to execution of large-scale infrastructure projects, like Airports, Defence Industrial/Technical Buildings, Hospitals, Housing, Steel Structural, Highways, and Bridges.The applicant has been awarded works contract by the Airport Authority of India. The project includes development and up-gradation of Airports by construction or extension of Runway, construction of new Taxi track, Apron, Isolation bay, Perimeter road and other allied works. Issue Involved What are the applicable rate of GST on Development of Airport by construction of Runway, Taxi track, Apron, Isolation bay, Perimeter Road including Earth work and…

Supply of food or drink under cash & carry model is taxable @ 5%

Recently AAR gave an important ruling dated  12th September 2019, regarding the applicability of GST on the supply of goods being food or any other article for human consumption or any drink provided by applicant under cash and carry model  in a case of Elior India Catering LLP, [2019] 110 taxmann.com 187 (AAR - KARNATAKA) which is discussed as below:

Facts of the case The Applicant is engaged in the business of providing outdoor catering services. The Applicant has entered into an agreement with CBRE South Asia Private Limited (‘CBRE’) whereby it has been decided that the Applicant will provide catering support services at the premises of CISCO Systems India Private Limited (‘CISCO’).Basis the said agreement, the Applicant prepares food items at the premises of CISCO and serves food to the employees working on specific shifts, wherein the Applicant receives consideration directly from CISCO on monthly basis. Further, under the Cash and Carry mode…

Changes related to various law and procedures announced by GST Council

The 38th meeting of the GST Council was held under the chairmanship of the Union Finance and Corporate Affairs Minister Nirmala Sitharaman on 18 December. The meeting was attended by Union Minister of State for Finance and Corporate Affairs Anurag Thakur, besides the Finance Ministers of States and Union Territories and senior officials of the Ministry of Finance.
The GST Council recommended the following: Grievance Redressal Committees (GRCs) will be formed at the zonal / state level with both CGST and SGST officials and with representatives from trade and industry and other GST stakeholders (GST practitioners and GSTN etc.). These committees will resolve complaints of specific / general nature of taxpayers at the zonal / state level.
The annual return date in FORM GSTR-9 and the reconciliation statement in FORM GSTR-9C for FY 2017-18 can be extended up to 31 January 2020.
The following measures will be taken to improve the filing of Form GSTR-1: Waiver of late fees to all taxpayers in re…

High Court grant anticipatory bail after reversing input tax credit taken fraudulently

Recently HC gave an important judgment dated 23th September 2019, where the applicant filed applications before HC seeking a grant of anticipatory bail in case of Nikit Mittal v. State of Jharkhand* [2019] 110 taxmann.com 422 (Jharkhand) which is discussed as below:

Facts of the Case Two applicants filed applications before the HC seeking grant of anticipatory bail in case of their arrest for taking the input tax credit on the basis of forged invoice. Both applicants stated in their application that they were reverse the input tax credit to the Goods and Services Tax Department.Observation/ Judgment HC granted anticipatory bail  to both applicants on the condition that they would reverse input tax credit allegedly taken on basis of forged invoice to GST Department and on furnishing bail bond with two sureties.They  were also instructed to co-operate with the investigation of the case and appear before the Investigating Officer as and when noticed by him…

Sweetmeat cereal bars coated with cocoa are exempt from duty

Recently CESTAT gave an important judgment dated 14th March 2019, regarding classification of supply of sweetmeat cereal bars supplied by applicant in case of Shaik Iqbal Mohammed v. Commissioner of Customs Central Excise & Service Tax, Hyderabad [2019] 110 taxmann.com 447 (Hyderabad - CESTAT) which is discussed as below:

Facts of the Case The applicant was engaged in the manufacture of sweetmeat cereal bars coated with cocoa and not coated with cocoa packed in sealed containers with various ingredients. The applicant classified the products as chikki sweet meat cereal bars under the category of Mithai which was classified under Heading No. 2106 90 99 and was eligible for an exemption from payment of duty.The adjudicating authority held that the product containing cocoa would fall under Heading No. 1806 90 90 and the product not containing cocoa was to be taxed as ready to eat packaged food under Heading No. 2106 90 99, liable to tax as per …

PVC Tufted Coir Mats and Mattings is taxable @12% GST

GST UPDATE: PVC Tufted Coir Mats and Mattings is taxable @12% GST
Recently AAR gave an important ruling dated 12th October 2019, regarding the classification of Supply of PVC tufted coir mats and mattings supplied by  the applicant in a case of Natural Fibre Tuft [2019] 110 taxmann.com 517 (AAR - KERALA) which is discussed  below:

Facts of the case The applicant is a manufacturer and supplier of PVC tufted coir mats and mattings. The raw materials used for its manufacture are Coir yarn, PVC resin, Dolomite filler, Pigment, etc. and manufacturing activity is fully mechanized. The coir yarn stacked in creel stand is automatically fed into the machine where the yarn is cut into bits of required pile height and tufted over a uniform thickness of PVC by heating and chilling. The PVC matting in rolls are cut in the required sizes and obtained finished products PVC tufted coir mats.Issue Involved Classification and taxation of PVC Tufted Coir Mats and Matting was under question.Ru…

Proposed changes in GST tax rates

PIB has issued a press release dated 18th December 2019 for changes in the rates and list of exemption under GST.

Highlights GST Exemption to be granted for upfront amount payable for long term lease of industrial/ financial infrastructure plots by an entity having 20% or more ownership of Central or State Government. This change shall become effective from 1st January 2020.Levy a single rate of GST @ 28% on both State-run and State-authorized lottery. This change shall become effective from 1st March 2020.Please click here for Press Release.

Special drive for cancellation of GST Registration in state of Kerala

Kerala has issued Circular No. 9/2019- GST dated 21st October 2019 for action against Return Defaulters and special drive for cancellation of registration of Return Defaulters.

Highlights of the circular are:

1. Notice for cancellation In the case of taxpayers who had migrated into GST and never furnished any return from the date of introduction of GST - Notice to cancel registration has to be issued with the retrospective effect from 01.07.2017.In the case of new registrants who had never furnished any return - Notice to cancel registration has to be issued with retrospective effect from the date of registration.In the case of taxpayers who had defaulted in filing returns - Notice to cancel registration has to be issued with retrospective effect from the date of the  defaulted return period.


2. Notice for cancellation shall be communicated both in the registered email address and by registered post or served in person.

3. If the taxpayer fails to furnis…

AAR rejected application as it was not related to supplies made by applicant

AAR rejected application as it was not related to supplies made by applicant: GST Update Recently AAR gave an important ruling dated 29 November, 2019 regarding GST charge by licensor on electricity charges in case of Barbeque Nation Hospitality Ltd. [2019] 112 taxmann.com 24 (AAR-WEST BENGAL) which is discussed as below:
Facts of the Case The applicant has taken on lease premises for the purpose of supplying of food from its restaurant, along with eating facility and ambience and other amenities. According to the agreement with licensor the applicant is required to pay the rent, security charges and maintenance charges and the applicable GST. The licensor raises separate invoices in relation to rent, maintenance charges, utility charges and electricity charges.The applicant is required to reimburse the electricity charges for the electricity consumed at actuals. However, in addition to the electricity charges, the licensor changes GST thereon…

Details on QR Code invoices

GST Update: Details on QR Code invoices
CBIC has issued Notification No. 72/2019 – Central Tax dated 13th December 2019, regarding implement of Quick Response (QR) code on invoice issued by a registered person to unregistered person.

Highlights of this notification are: An invoice issued by a registered person, whose aggregate turnover in a financial year exceeds INR 500 crores, to an unregistered person, shall have Quick Response (QR) code.Dynamic Quick Response (QR) available to the recipient through a digital display, shall also be deemed to be having Quick Response (QR) code.This notification shall come into force from the 1 April, 2020.
Please click here for Notification.

Aluminium ladders are taxable @ 18% GST

GST Update : Aluminium ladders are taxable @ 18% GST Recently AAR gave an important ruling dated 29 November 2019 regarding the implication of GST on articles of Aluminium in case of Metro Aluminium [2019] 112 taxmann.com 26 (AAR-ANDHRA PRADESH) which is discussed as below:

Facts of the Case The applicant is engaged in the business of aluminium extrusions, other products of aluminium and hardware like aluminium ladders generally used for Domestic / House-hold purpose and aluminium industrial ladders.Issue Involved What are the GST rates on aluminum ladders and aluminum industrial ladders?Observation/Ruling Irrespective of the end-use of the ladders whether for domestic purpose or for Commercial use, aluminium ladders come under HSN code 7616, "Other articles of aluminium" and attract a Tax rate of 18%Please click here for order.


GST applicable on amount received as bonus for manpower services

GST applicable on amount received as bonus for manpower services: GST Update
Recently AAR gave an important ruling dated 29 November, 2019 regarding GST implication on bonus paid or payable to security personnel  in case of Ex-Servicemen Resettlement Society  [2019] 112 taxmann.com 20 (AAR-WEST BENGAL) which is discussed as below:

Facts of the Case The Applicant, stated to be a registered society providing security services and scavenging services to various hospitals under the State Government.Issue Involved Whether it is liable to pay GST on the portion of the payment received on account of the bonus payable to the persons it deploys as security personnel?Observation/Ruling Security personnel are not employees of the State Government. The employer of the security personnel deployed and is responsible for paying all statutory dues, including employer’s contribution to EPF, ESI etc. These expenses need to be passed on to the recipient of services …

Establishment of an immovable facility is a works contract

GST Update: Establishment of an immovable facility is a works contract Recently AAR gave an important ruling dated 16th October, 2019 regarding establishment of an immovable facility and its classification in case of Tata projects Ltd. [2019] 111 taxmann.com 531 (AAR-TAMILNADU) which is discussed as below:
Facts of the Case The applicant is engaged in the process, design, detailed engineering, procurement, shop fabrication & inspection, supply, storage, site fabrication, erection, inspection & commissioning of Integrated Cryogenic Engine & Stage Test Facility.ISRO has awarded the applicant a contract for establishment of Integrated Cryogenic Engine & stage Test facility (ICET) for Satellite launch Vehicle ProgramIssue Involved Whether supply of Engineering, Procurement & Construction (EPC) contract for establishment of Integrated Cryogenic Engine & Stage Test facility (ICET) wherein both goods and services are supplied can be…

Bank accounts cannot be attached tax has been paid even if there is no receipt of goods: GST Updates

Recently HC of gave an important judgment dated 28th August, 2019 regarding availment of input tax credit without physical receipt of goods in case of Pranit Hem Desai V. Additional Director General, [2019] 110 taxmann.com 472 (GUJARAT) which is discussed as below:

Facts of the Case The Competent Authority had provisionally attached the bank accounts of the taxpayer under section 83 on the allegation that it without physical receipt of goods availed credit on basis of the invoices issued by the input supplier and thereafter paid GST on the basis of the output invoices without physical supply of the goods to the buyers.The competent authority passed order as the allegation levied against that the goods were not supplied, yet the tax was paid for the purpose of passing the credit. Thus, no GST was payable, yet the same was paid.Taxpayer filed a writ against this order. Petitioner stated that Section 9, which is the charging section, which …

Tax authority to determine whether to permit copies of seized documents

High court gave an important ruling dated 14th August, 2019 regarding power of inspection, search & seizure in case of Nitesh Jain Mangal Chand V. Senior Intelligence Officer [2019] 110 taxmann.com 95 (MADRAS) which is discussed as below:
Facts of the case The Competent Authority conducted a search upon the assessee and seized various documents/electronic devices. The assessee filed a writ petition seeking directions to the Competent Authority to provide him copies of the statement recorded and documents that were seized.Observation / Judgment In section 67(5) there is a provision regarding copies of documents seized. In the light of the narrative, the court held the Competent Authority to dispose of/respond to the assessee's request letter on its own merits and in accordance with law within a fortnight.Please click here for ruling .

Advance ruling cannot be obtained on 'provisions of e-way bill' as it is not in AAR's jurisdiction

GST Update : Advance ruling cannot be obtained on 'provisions of e-way bill' as it is not in AAR's jurisdiction

AAR gave an important ruling dated 21st May,2019 regarding question raised by the applicant dies not fall under the ambit of advance ruing in a case of Tamil Nadu Edible Oils [2019] 110 taxmann.com 421 (AAR - TAMILNADU) which is discussed as below:

Facts of the Case The applicant is engaged in the the business of Refining of Edible Oils. It undertakes delivery of goods pertaining to multiple invoices in a single goods carriage vehicle owned by it within the State of Tamil Nadu, where the limit for generation of e-way is Rs. One lakh.It sought advance ruling on whether e-way bill is required for consignments pertaining to multiple invoices to multiple customers moved in the same conveyance, in which value of each invoice is less than the limits for generation of e-way bill but in aggregate, the value of the multiple invoices exceeds the…

Agriculture mechanical sprayer' is to be taxed @ 12%

GST Update : Agriculture mechanical sprayer' is to be taxed @ 12% AAR gave an important ruling dated 24th July, 2019 regarding classification and tax rate of goods manufactured by the applicant in a case of Ravi Masand [2019] 110 taxmann.com 451 (AAR - MADHYA PRADESH) which is discussed below: Facts of the case
The applicant is engaged in intend import, trade and/or manufacture/assemble 'agriculture knapsack sprayer' both mechanical and hand-operated, which is used generally in agriculture. Issue Involved Whether agriculture knapsack sprayer in question is classifiable under Heading No. 8424 and with effect from 25-1-2018 attracting GST at rate of 12%?Observation/Ruling Sl. No. 195B of Schedule II (Tax @ 12% )to the Notification No. 1/2017 - Central Tax (Rate) dated 28-6-2017, post amendment reads as:Sprinklers; drip irrigation system including laterals; mechanical sprayers It was held that the product agriculture mechanical sprayer will …

High court directed assessment officers to redo the assessment

The high court gave an important ruling dated 9th September, 2019 regarding assessment orders passed by assessment officers in case of Delphi TVS Technologies Ltd. V. Assistant Commissioner (ST) [2019] 110 taxmann.com 293 (MADRAS) which is discussed as below:

Facts of the case Notices of dated 21.02.2019 were issued to the taxpayer. On receipt of such notices, taxpayer through letters dated 15.03.2019, requested the tax officer to give them time upto 15th April 2019 for submission of reply, which was acknowledged at the office of the assessing officer on 20.03.2019.Perusal of the assessment, orders would also show that the said letter was received by the tax officer.Tax Officer, without giving time for the taxpayer, has proceeded to pass assessment orders on 29.03.2019 by stating that the taxpayer failed to file their objection.Taxpayer filed a writ petition challenging the impugned assessment orders on the ground that it was not gi…

High court directed authorities to permit taxpayers to download C Form : GST Update

Recently High Court gave an important ruling dated 4th June,2019 regarding the purchase of high-speed diesel on concessional rate of 2% in case of Shri varalakshmi company v. State of Tamil Nadu [2019] 107 taxmann.com 410 (MADRAS) which is discussed as below:

Facts of the case Assessee was making inter-State purchases of High-Speed Diesel Oil on concessional rate of tax at 2% against C Forms.After the introduction of GST regime revenue authorities informed assessee that with effect from 1-7-2017 it was not entitled to make purchase of High Speed Diesel Oil from other States on concessional rate of tax and, therefore, department site had been blocked to deny access to assessee from downloading C Forms .Observation / Judgement High Court allowed the writ petitions filed by assessees and directed revenue authorities to permit assessee to download C Forms and revenue authorities were to be directed to take forthwith necessary action in this r…