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Appointment of revisional authority under GST laws

CBIC has issued Notification No. 05/2020 – Central Tax dated 13th January, 2020 for the appointment of Revisional Authority under CGST Act,2017.Central Board of Indirect Taxes and Customs hereby authorises -(a) the Principal Commissioner or Commissioner of Central Tax for decisions or orders passed by the Additional or Joint Commissioner of Central Tax; and (b) the Additional or Joint Commissioner of Central Tax for decisions or orders passed by the Deputy Commissioner or Assistant Commissioner or Superintendent of Central Tax, as the Revisional Authority under section 108 of the said Act.

Government of India
Ministry of Finance
(Department of Revenue)
Central Board of Indirect Taxes and Customs Notification No. 05/2020-Central TaxNew Delhi, the 13th January, 2020 G.S.R…..(E).– In pursuance of the provisions of section 5 read with clause (99) of section 2 of the Central Goods and Services Tax Act, 2017 (12 of 2017) (hereinafter referred to as the said Act), the Central Board of Indirect Ta…

High Court directed authorities to re-open portal for filing of Form GST TRAN-1

High Court of Guwahati gave an important judgment dated 26th September, 2019 regarding filing of Form GSTR TRAN-1 electronically or manually in case of Sakshi motors V. Union of India [2019] 112 taxmann.com 223 (GUAHATI) which is discussed as below:
Facts of the Case The applicant is a private limited company engaged in the trade of dealing in food items, edibles, FMCG etc. They are unable to submit the Form GST TRAN-2 in relation to Part-7A. According to the applicant, they have submitted TRAN-1 return in a proper complete and correct manner.But inspite of such filing, the GST portal does not reflect the value of the stock returned, against which he is entitled to get import credit on filing of TRAN-2 return.Observation/Judgment It is observed that the taxpayer had made all the attempts to file the form electronically but because of computer glitches, the same could not be filed. Therefore, HC directed taxpaying authorities to re-open web por…

CAG audit of GST implementation in FY 2017-18

Union Government Department of Revenue (Indirect Taxes – Goods and Services Tax) has issued Report No. 11 of 2019 i.e. Report of Comptroller and Auditor General of India on GST for the year ended March 2018.

This is the first Audit Report of CAG on Goods and Services Tax (GST), prepared on the basis of audits conducted during the year 2018-19. The Report acknowledges the magnitude of the tax reform that GST has been and the efforts of all the stakeholders, including the businesses, in transiting to this system.

This report has been divided into four chapters, important points mentioned in each chapter has been given below:

1. Chapter I : Implementation of Goods and Services Tax (GST) The roll out of GST has been a landmark achievement of the Government with respect to unifying multiple central and state taxes barring a few goods / sectors and availability of Input Tax Credit (ITC) across the entire value chain. Multiplicity of tax rates has also been eliminated to a …

Protein powder with vitamin and minerals classifiable under HS Code 3004

Recently AAR gave an important ruling dated 15th November, 2019 regarding classification of protein powder and minerals in case of Newtramax Healthcare [2019] 111 taxmann.com 525 (AAR-HIMACHAL PRADESH) which is discussed as below:

Facts of the Case The applicant is a registered person engaged in manufacture and supply of Pharmaceutical formulations. He has obtained loan licence to manufacture for sale or distribution of drugs specified in schedule C and schedule C1 of the drugs and cosmetics Act, 1940.Issue Involved What will be the HS Code of all the goods manufactured by the applicant ?Observation/Judgment AAR is of the opinion that all the goods being manufactured by the applicant under the drug license issued to the applicant as per the standards prescribed under the Drugs and Cosmetics Act, 1940 can be classified under HS code 3004.Please click here for order.

14% GST applicable on carbonated fruit drink/ juice

Recently AAR gave an important ruling dated 17th October, 2019 regarding tax rate and HSN code of fruit beverages or drinks in case of Kalis Sparkling water (P). Ltd. [2019] 112 taxmann.com 4 (AAR-TAMIL NADU) which is discussed as below: Facts of the Case The applicant stated that they are going to manufacture beverages with fruit juices and without milk. They understand from the industry that fruit pulp or fruit juice based drinks fall under HSN code 22029020 liable to be taxed at 12%.They state that fruit juice-based drinks should be called "Carbonated beverage with fruit juice" as per Para 3A definition in FSSAI Act.Issue Involved What is the rate of tax and HSN Code for fruit beverages or drinks?Observation/Judgment AAR held that the product falls under the category of "Other" under CTH 2202 10 90. The applicable rate of tax is 28%.Please click here for order.

18% GST on electrification work provided to Government entity

Recently AAR gave an important ruling dated 2th November 2019 regarding rate of GST applicable on electrification work to APSPDCL in case of GVS Projects (P) Ltd. [2019] 111 taxmann.com 528 (AAR-ANDHRA PRADESH) which is discussed as below:

Facts of the Case The applicant is engaged in electrification work of “System improvement project for erection of 2 Nos.33/11 KV Indoor sub-stations and their connected lines at Nellore Town on semi turnkey basis under IDPS” to Andhra Pradesh Southern Power distribution company.Issue Involved Whether APSPDCL is a Government authority/ Government company?What will be the applicable rate of GST on the work agreement between applicant and APSPDCL?Whether the value of materials recovered from our RA bills issued on a cost-recovery basis by APSPDCL is liable to tax under RCM ?Observation/Judgment APSPDCL is a government company i.e. wholly owned by the Government of Andhra Pradesh.Work undertaken to be executed …

Agent required mandatory GST registration for supplying taxable goods

AAR gave an important ruling dated 12th September, 2019 regarding registration of agent for receipt of dry chilies from farmers & supply to traders in case of Morigeri Traders [2019] 110 taxmann.com 200 (AAR-KARNATAKA) which is discussed as below:

Facts of the Case The applicant is into the business of rendering service of supplying dry chillies on behalf of farmers to the traders as commission agents.They sell goods on behalf of farmers to the traders, issue invoices to the traders/buyers as prescribed under the APMC Act and also issue sale patties to the farmers.They collect a commission on the services provided to the farmers from the purchasers and the same is also shown in the invoice issued to the purchasers.Issue Involved Whether the applicant is required to be registered under the GST Act? Observation/Ruling Schedule I CGST Act, 2017 states that “Supply of goods— (a) by a principal to his agent where the agent undertakes to supply s…

Authority needs to pass speaking order if they reject a refund claim

High Court gave an important ruling dated 6th September,2019 regarding refund claim of taxpayer being rejected by the competent authority in a case of HCL infosystems LTD. v. Union of India [2019] 110 taxmann.com 295 (Delhi) which is discussed as below:

Facts of the Case The Competent Authority rejected the refund claim of the taxpayer.Taxpayer filed a writ petition against this order, no prior hearing was given to him before the order for rejection.Observation/Ruling HC held that the impugned order rejecting the refund claim of the assessee required to be set aside, as the same has been passed without hearing the assessee and, admittedly, is unreasoned.The Competent Authority is directed to grant a personal hearing to the assessee for consideration of the assessee's claim and pass speaking order. Please click here for Ruling.

18% GST applicable on extraction & transportation and maintenance of timber bamboo

Recently AAR gave an important ruling dated 9th July, 2019 regarding applicability of GST rate and classification of services related to timber/ bamboo in case of Mallelli Venkateswara Rao [2019] 111 taxmann.com 530 (AAR-ANDHRA PRADESH) which is discussed as below: Facts of the Case M/s Mallelli Venkateswara Rao is engaged in Extraction of Timber/Bamboo in Natural Forests, Transportation of Timber / Bamboo from natural Forests to the Government Depots, Maintenance of Government depots like classification/grading of Timber /Bamboo.Issue Involved What will be the GST rate and HSN Code on the works provided by the applicant?Observation/Judgment The transactions made by the applicant fall under entry 35 of the Heading 9997(SAC Code) of the notification no 11/2017, dt: 28-06-2017 and taxable at a rate of 18%.Please click here for order.

Supply of UPS systems with installation testing and commissioning would be a composite supply

AAR gave an important ruling dated 4th October,2019 regarding classification of goods and services provided by the applicant in a case of Vertiv Energy [2019] 110 taxmann.com 179 (AAR-Maharashtra) which is discussed as below:

Facts of the Case Applicant engaged in the manufacture of various types of UPS systems, which serve as an alternate source of power for a specific period of time in the event of power failure. The applicant also supplies installation commissioning and maintenance and other services to its customers.The applicant entered into a contract with Delhi Metro Railway Corporation (“DMRC”) for Supply, installation, testing, and commissioning of UPS systemsThe applicant has submitted that the goods are supplied by the applicant from their Maharashtra GST registered premises, the services portion of the contract i.e. erection, installation and commissioning service are rendered by their New Delhi branch which is separately registered under G…

Dalochar (waste from manufacturing process) classifiable under Tariff head 2619 taxable @18%

Recently AAR gave an important ruling dated 20th September 2019, regarding GST classification of supply of Char-dolochar/dolochar suuplied by applicant in case of Jairaj Ispat Ltd. [2019] 110 taxmann.com 230 (AAR - KARNATAKA) which is discussed as below:

Facts of the Case The applicant was engaged in the process of manufacturing sponge iron using iron ore & coal as a raw product. During the process, char-dolchar/dolchar emerged as waste products/by ­product. The physico-chemical properties of Dolochar reveal that it is a type of semi-coke and has poor wash ability.Issue Involved Whether the char-dolochar/dolochar supplied by applicant  is classifiable under Tariff Item 2621 90 90 of Customs Tariff Act, 1975 and therefore, in view of Entry 30 of Schedule III of Notification 1/2017-Integrated Tax (Rate), attract a levy of 18%? Observation/ Judgment Tariff Item 2701 20 90  covers  Other Briquettes, ovoid and similar solid fuels manufactur…

Agriculture Implements used for rubber tapping are exempted from GST

Recently AAR gave an important ruling dated 17th September 2019 regarding the implication of GST on agriculture implements used for rubber tapping in case of M/s. Geo Thomas & Co. [2019] 110 taxmann.com 513 (AAR - KERALA) which is discussed as below:

Facts of the case The applicant is engaged in the manufacture and supply of goods/ implements used by rubber farmers for agricultural operations including taping, collection and process. The products include plastic cup, spout and cup holder for latex collection Etc. The applicant is also a supplier of latex collection cup, which is made up of plastic.Issue Involved What is the classification and rate of tax of agricultural implements used for rubber tapping such as Spouts, Cup Holders and Collection Cups?Observation/ Ruling AAR held that the Spout, cup holder and latex collection cup are agricultural implements exclusively used for rubber tapping come under the classification HSN 8201 90 …

Select composite supply of work contract supplied by a subcontractor to main contractor is taxable @ 12%

Recently AAR gave an important ruling dated 16th September 2019, regarding the work contract services in case of VK Building service (P.) Ltd. . [2019] 110 taxmann.com 198 (AAR - KARNATAKA) which is discussed as below:

Facts of the case The applicant, engaged in Civil Construction and Works Contract Services, entered into an agreement to undertake the sub-contract work of civil construction of residential complexes/ row of residential houses, allotted by main contractor Gowri Infra Engineers Private Limited (“GIPL”) through tender by the Bengaluru Development Authority(Government authority).Issue Involved Whether the activity undertaken by the applicant is covered under works contract?What is the rate of tax on the said transaction?Observation/Ruling As per section 2(119) "works contract" means a contract for building, construction, fabrication, completion, erection, installation, fitting out, improvement, modification, repair, m…