GST RECENT CHANGES ABHAY DESAI, B.Com., F.C.A., L.L.B., D.I.S.A. - - PowerPoint PPT Presentation
GST RECENT CHANGES ABHAY DESAI, B.Com., F.C.A., L.L.B., D.I.S.A. YAGNESH DESAI & CO. SOME POSITIVE LESSONS FROM GABBAR SINGH ON OVERALL GST ROLL-OUT Decisiveness - Jo darr gaya, samjho mar gaya! Brand Building - Gabbar aa
ABHAY DESAI, B.Com., F.C.A., L.L.B., D.I.S.A. YAGNESH DESAI & CO.
SOME POSITIVE LESSONS FROM GABBAR SINGH ON OVERALL GST ROLL-OUT
■ Decisiveness - Jo darr gaya, samjho mar gaya! ■ Brand Building - Gabbar aa jayega
DATE FROM WHICH CHANGES SHALL BE EFFECTIVE
■ It may be noted that as per Sec. 11(1) of the Central Goods & Services Tax (‘CGST’) Act, 2017 Government has power to grant exemption effective from such date as “may” be specified in the notification. ■ Stating effective date in the Notification is not mandatory since the word “may” has been used. Hence if a particular date is specified in the Notification, changes made shall apply from such specified date. ■
expressions “notify” and “notified” shall be construed accordingly. ■ I.T.C. Bhadrachalam Paper Boards v. Mandal Revenue Officer, AP (JT 1996 (8) 67).
SUSPENSION OF GENERAL RCM
■ Omission v. Repeal ■ Notification No. 38/2017 - Central Tax (Rate) dated 13 October 2017 seeks to amend the previous notification by omitting proviso providing exemption of INR 5,000/day. Hence irrespective of any value, tax under reverse charge u/s 9(4) shall not be payable. ■ Rayala Corporation (P) Ltd vs Directorate of Enforcement (1969 2 SCC 412) ■ General Finance Co. & Another vs Assistant Commissioner of Income-Tax (2002 257 ITR 339 SC) – Doubt expressed
COMPOSITION SCHEME
■ Aggregate turnover limit increased to INR 1 crore for general category States. For specified States limit is INR 75 lakhs - Notification No. 46/2017. ■ Due date to furnish GSTR-4 by composition supplier for quarter July to Sept, 2017 is 24/12/17 – Notification No. 59/2017. ■ Serial 4A (inward supplies from registered suppliers other than RCM) of Table-4 in GSTR-4 shall not be furnished for periods July to Sept & Oct to Dec 2017 – Notification
■ Supply of any exempt services including services by way of extending deposits, loans or advances in so far as the consideration is represented by way of interest or discount will not make the person ineligible for composition & such value is not to be considered in computing aggregate turnover - Order No. 01/2017-Central Tax. ■ Time limit for intimation in form GST CMP-03 (stock details for migrated persons) extended till 30/11/2017 - Order No. 05/2017-GST.
COMPOSITION SCHEME
■ Option to opt in anytime. It will be applicable with effect from the first day of the month immediately succeeding the month in which he files an intimation in FORM GST CMP-02. ■ FORM GST ITC-03 (for ITC reversal on stocks) to be furnished within a period of ninety days from the day on which such person commences to pay tax under section 10. ■ TRAN – 1 cannot be filed after ITC – 03. ■ Open till 31.03.2018 – (Notification No. 45/2017). ■ Thereafter to opt prior to commencement of FY or on applying for fresh registration – Rule 3(2) & 3(3).
COMPOSITION SCHEME - PROPOSALS
■ Uniform rate of tax @ 1% under composition scheme for manufacturers and traders (for traders, turnover will be counted only for supply of taxable goods). No change for composition scheme for restaurant. ■ Supply of services by Composition taxpayer upto Rs 5 lakh per annum will be allowed by exempting the same. ■ Annual turnover eligibility for composition scheme will be increased to Rs 2 crore from the present limit of Rupees 1 crore under the law. Thereafter, eligibility for composition will be increased to Rs. 1.5 Crore per annum. ■ The changes recommended by GST Council at (iii) above will be implemented only after the necessary amendment of the CGST Act and SGST Acts.
INPUT TAX CREDIT
■ Special procedure or extension of the time limit for furnishing GSTR -2 to be notified
■ ‘Actual payment test’ not suspended ■ On Quest Merchandising India Pvt. Ltd. v. Government of NCT of Delhi (W.P.(C) 6093/2017 & CM No.25293/2017) – Landmark decision ■ Extends the time limit for declaration in Form GST ITC-01 (for claiming opening ITC u/s 18(1)) for July, August & Sept 2017 to 30/11/17 – Notification No. 52/2017
ADVANCE RULING
■ Manual filing permitted - Notification No. 55/2017
REFUND APPLICATION
■ Manual filing and processing of refund application enabled. Form RFD - 01 A prescribed for making application & order to be passed in Form RFD - 01 B – Notification No. 55/2017. Applicable for all categories of refunds except export of goods with payment of tax. ■ Shipping Bill is the refund application in case of export of goods with payment. ■ Circular No. 17/17/2017 – Detailed guidelines for claiming manual refund. ■ Customs vide Circular No. 42 has asked GSTN to provide for Table 9A in GSTR – 1 for August to make correction in GSTR – 1 of July so that refund claim can be processed. ■ Online: ■ RFD – 01 A – Refund for accumulated ITC on account of zero-rated supplies made without payment – ARN after debit to be submitted manually with necessary evidences. ■ GSTR – 1E – Refund on exports with payment of GST for August & thereafter.
DEEMED EXPORTS
■
goods as may be notified under section 147. ■ As per Sec. 147 Government has power to notify certain supplies of goods as deemed exports, where goods supplied do not leave India, and payment for such supplies is received either in Indian rupees or in convertible foreign exchange, if such goods are manufactured in India.
CATEGORIES OF DEEMED EXPORTS
■ Supply of goods by a registered person against Advance Authorization ■ Supply of capital goods by a registered person against Export Promotion Capital Goods Authorization ■ Supply of goods by a registered person to Export Oriented Unit ■ Supply of gold by a bank or Public Sector Undertaking specified in the notification No. 50/2017-Customs, dated the 30th June, 2017 (as amended) against Advance Authorization - Notification No. 48/2017 ■ “Export Oriented Unit” means an Export Oriented Unit or Electronic Hardware Technology Park Unit or Software Technology Park Unit or Bio-Technology Park Unit approved in accordance with the provisions of Chapter 6 of the Foreign Trade Policy 2015-20. ■ “Advance Authorisation” means an authorisation issued by the Director General of Foreign Trade under Chapter 4 of the Foreign Trade Policy 2015-20 for import or domestic procurement of inputs on pre-import basis for physical exports ■ Export Promotion Capital Goods Authorisation means an authorisation issued by the Director General of Foreign Trade under Chapter 5 of the Foreign Trade Policy 2015- 20 for import of capital goods for physical exports.
REFUND - DEEMED EXPORTS
■ As per Explanation 1 to Sec. 54 of the CGST Act, 2017 word refund includes the refund
■ Hence benefit under the GST law is that once a supply is regarded as deemed exports, refund of tax paid on such supply including provisional refund shall become available. ■ To facilitate said refund a proviso has been inserted in Rule 89(1) of CGST Rules, 2017 to provide that an application for refund in respect of supplies regarded as deemed exports can be filed either by the supplier of deemed export supplies in cases where the recipient does not avail of input tax credit on such supplies and furnishes an undertaking to the effect that the supplier may claim the refund or by the recipient of deemed export supplies (Notification No. 47/2017 – Central Tax dated 18th October, 2017). ■ Application for such refund must be filed within two years from the date on which return relating to such deemed exports is furnished.
EVIDENCES FOR CLAIMING REFUND – DEEMED EXPORTS
■ Acknowledgment by the jurisdictional Tax officer of the Advance Authorisation holder
said deemed export supplies have been received by the said Advance Authorisation or Export Promotion Capital Goods Authorisation holder, or a copy of the tax invoice under which such supplies have been made by the supplier, duly signed by the recipient Export Oriented Unit that said deemed export supplies have been received by it. ■ An undertaking by the recipient of deemed export supplies that no input tax credit on such supplies has been availed of by him. ■ An undertaking by the recipient of deemed export supplies that he shall not claim the refund in respect of such supplies and the supplier may claim the refund. Notification
PROCEDURES
■ Circular No. 14/14 /2017 - GST is issued detailing the procedure for such supplies. ■ The recipient EOU / EHTP / STP / BTP unit shall give prior intimation in a prescribed proforma in "Form–A" bearing a running serial number containing the goods to be procured, as pre-approved by the Development Commissioner and the details of the supplier before such deemed export supplies are made. The said intimation shall be given to – (a) the registered supplier; (b) the jurisdictional GST officer in charge of such registered supplier; and (c) its jurisdictional GST officer. ■ The registered supplier thereafter will supply goods under tax invoice to the recipient EOU / EHTP / STP / BTP unit. ■ On receipt of such supplies, the EOU / EHTP / STP / BTP unit shall endorse the tax invoice and send a copy of the endorsed tax invoice to – (a) the registered supplier; (b) the jurisdictional GST officer in charge of such registered supplier; and (c) its jurisdictional GST officer.
PROCEDURES
■ The endorsed tax invoice will be considered as proof of deemed export supplies by the registered person to EOU / EHTP / STP / BTP unit. ■ The recipient EOU / EHTP / STP / BTP unit shall maintain records of such deemed export supplies in digital form, based upon data elements contained in "Form-B". The software for maintenance of digital records shall incorporate the feature of audit trail. While the data elements contained in the Form-B are mandatory, the recipient units will be free to add or continue with any additional data fields, as per their commercial requirements. All recipient units are required to enter data accurately and immediately upon the goods being received in, utilized by or removed from the said unit. ■ The digital records should be kept updated, accurate, complete and available at the said unit at all times for verification by the proper officer, whenever required. ■ A digital copy of Form – B containing transactions for the month, shall be provided to the jurisdictional GST officer, each month (by the 10th of month) in a CD or Pen drive, as convenient to the said unit. ■ The above procedure and safeguards are in addition to the terms and conditions to be adhered to by a EOU / EHTP / STP / BTP unit in terms of the Foreign Trade Policy, 2015- 20 and the duty exemption notification being availed by such unit.
ZERO-RATED SUPPLIES
■ Notification No. 37/2017 – Central Tax dated 4th October, 2017 has been issued which extends the facility of LUT to all exporters except those who have been prosecuted for any offence under the CGST Act or the Integrated Goods and Services Tax Act, 2017 or any of the existing laws and the amount of tax evaded in such cases exceeds two hundred and fifty lakh rupees ■ Circular No. 8/8/2017-GST - Consolidated circular
MERCHANT EXPORTERS - NOTIFICATION NO. 40/2017
■ Same goods theory ?? ■ Rate of tax: Supplies of all taxable goods to a merchant exporter shall be done @ 0.1% in case of inter-state supplies. Intra-state supplies shall be done @ 0.05% as CGST and 0.05% as SGST. ■ Following conditions must be fulfilled: ■ the registered supplier shall supply the goods to the registered recipient on a tax invoice; ■ the registered recipient shall export the said goods within a period of ninety days from the date of issue of a tax invoice by the registered supplier; ■ the registered recipient shall indicate the Goods and Services Tax Identification Number of the registered supplier and the tax invoice number issued by the registered supplier in respect of the said goods in the shipping bill or bill of export, as the case may be; ■ the registered recipient shall be registered with an Export Promotion Council or a Commodity Board recognized by the Department of Commerce;
MERCHANT EXPORTERS
■ The registered recipient shall place an order on registered supplier for procuring goods at concessional rate and a copy of the same shall also be provided to the jurisdictional tax
the eventual export will be proved by linking tax invoice of supplier with the shipping bill filed by merchant exporter) ■ The registered recipient shall move the said goods from place of registered supplier – (a) directly to the Port, Inland Container Deport, Airport or Land Customs Station from where the said goods are to be exported; or (b) directly to a registered warehouse from where the said goods shall be move to the Port, Inland Container Deport, Airport or Land Customs Station from where the said goods are to be exported; ■ If the registered recipient intends to aggregate supplies from multiple registered suppliers and then export, the goods from each registered supplier shall move to a registered warehouse and after aggregation, the registered recipient shall move goods to the Port, Inland Container Deport, Airport or Land Customs Station from where they shall be exported;
MERCHANT EXPORTERS
■ In case of situation referred before, the registered recipient shall endorse receipt of goods on the tax invoice and also obtain acknowledgement of receipt of goods in the registered warehouse from the warehouse operator and the endorsed tax invoice and the acknowledgment of the warehouse operator shall be provided to the registered supplier as well as to the jurisdictional tax officer of such supplier; and ■ When goods have been exported, the registered recipient shall provide copy of shipping bill or bill of export containing details of Goods and Services Tax Identification Number (GSTIN) and tax invoice of the registered supplier along with proof of export general manifest or export report having been filed to the registered supplier as well as jurisdictional tax officer of such supplier. ■ The registered supplier shall not be eligible for the above mentioned exemption if the registered recipient fails to export the said goods within a period of ninety days from the date of issue of tax invoice.
INVOICE
■ Insurer or a banking company or a financial institution may issue consolidated invoice as against earlier provision where it was mandatory to issue consolidated invoice – Notification No. 55/2017 ■ Registered person is supplying taxable as well as exempted goods or services or both to an unregistered person, a single “invoice-cum-bill of supply” may be issued for all such supplies - Notification No. 45/2017
JOB-WORK
■ Notifies revised time limit for filing ITC - 04 in respect of goods dispatched to a job worker or received from a job worker or sent from one job worker to another for the quarter July to September, 2017 till the 31st day of December, 2017. – Notification No. 63/2017
CANCELLATION OF PROVISIONAL RC
■ Last date extended to 31/12/17 for application of cancellation of registration - Notification No. 51/2017
LATE FEES WAIVER
■ Late fee for late filing of FORM GSTR-3B, for the month of July waived – Notification No. 28/2017 ■ Late fee for late filing of FORM GSTR-3B, for the month of Aug & Sept waived – Notification No. 50/2017 ■ Notifies waiver of late fees for failure to furnish GSTR - 3B within due dates from October onwards in excess of INR 25/day. In case CGST payable is NIL, late fees shall be INR 10/day. Hence total late fees for October GSTR - 3B and afterwards shall be INR 50/day and in case of NIL liability it shall be INR 20/day. - Notification No. 64/2017
REGISTRATIONS
■ Seeks to exempt persons making inter-State supplies of services whose aggregate turnover is less than INR 20 lakhs from registration – Notification No. 10/2017 – IGST ■ Persons making supplies of services, other than through E-commerce operator who is required to collect tax at source, and having aggregate turnover not exceeding INR 20 lakhs is exempt from obtaining registration – Notification No. 65/2017 ■ Seeks to exempt persons making inter-State supplies of handicraft goods from registration – Notification No. 32/2017 ■ Seeks to exempt job-workers making inter-State supply from registration – Notification
■ Seeks to exempt persons only engaged in making taxable supplies, total tax on which is liable to be paid on reverse charge basis – Notification No. 5/2017
TIME OF SUPPLY
■ Registered person, other than composition supplier, is required to pay tax only at the time of issuing the invoice & not at the time of receipt of advance. Said benefit is available only in respect of supply of goods – Notification No. 66/2017
TRAN - 1
■ Seeks to extend the time limit for filing original TRAN - 1 to 27th December 2017 - Order
■ Seeks to extend the time limit for filing revised TRAN - 1 to 27th December 2017 - Order
GST RETURNS
Period/Month GSTR 3B along with payment GSTR-1 GSTR-2 GSTR-3 Taxpayers with annual aggregate turnover up to INR 1.5 crore Taxpayers with annual aggregate turnover more than INR 1.5 crore July 2017 25/08/2017 31/12/2017 31/12/2017 Mechanism to be notified separately. August 2017 20/09/2017 September 2017 20/10/2017 October 2017 20/11/2017 15/02/2018 November 2017 20/12/2017 10/01/2018 December 2017 20/01/2018 10/02/2018 January 2018 20/02/2018 30/04/2018 10/03/2018 February 2018 20/03/2018 10/04/2018 March 2018 20/04/2018 10/05/2018
GST RETURNS
Form Period Particulars Due Date GSTR-4 July to Sep 2017 Quarterly return for registered person opting for composition scheme 24/12/2017 GSTR-5 July 2017 Return for Non-resident taxable person 11/12/2017 August 2017 September 2017 October 2017 GSTR-5A July 2017 Details of supplies of online information and database access or retrieval services by a person located outside India made to non- taxable person in India 15/12/2017 August 2017 September 2017 October 2017 GSTR-6 July 2017 Return for input service distributor 31/12/2017
PRINTING CONTRACTS - CIRCULAR NO. 11/11/2017-GST
■ In the case of printing of books, pamphlets, brochures, annual reports, and the like, where only content is supplied by the publisher or the person who owns the usage rights to the intangible inputs while the physical inputs including paper used for printing belong to the printer, supply of printing [of the content supplied by the recipient of supply] is the principal supply and therefore such supplies would constitute supply of service falling under heading 9989 of the scheme of classification of services. ■ In case of supply of printed envelopes, letter cards, printed boxes, tissues, napkins, wall paper etc. falling under Chapter 48 or 49, printed with design, logo etc. supplied by the recipient of goods but made using physical inputs including paper belonging to the printer, predominant supply is that of goods and the supply of printing of the content [supplied by the recipient of supply] is ancillary to the principal supply of goods and therefore such supplies would constitute supply of goods falling under respective headings of Chapter 48 or 49 of the Customs Tariff.
PRINTING CONTRACTS
■ Services by way of printing in relation to printing of all goods falling under Chapter 48
publisher and the physical inputs including paper used for printing belong to the printer – taxed @ 12% ■ Services by way of printing of all goods falling under Chapter 48 or 49 which attract GST @18% or above, where only content is supplied by the publisher and the physical inputs including paper used for printing belong to the printer – taxed @ 18%
COMPOSITE v. MIXED SUPPLIES
■
consisting of two or more taxable supplies of goods or services or both, or any combination thereof, which are naturally bundled and supplied in conjunction with each other in the ordinary course of business, one of which is a principal supply. ■
the predominant element of a composite supply and to which any other supply forming part of that composite supply is ancillary ■
for a single price where such supply does not constitute a composite supply.
PRINTING CONTRACTS – WHAT IS PRINCIPAL SUPPLY ??
■ Graphic Procédé v. French Ministry of the Budget (CASE C 88/09 dated FEBRUARY 11, 2010) ■ Key principles: ■ The Court has also held that, taking into account the two facts that, firstly, it follows from Article 2 of the Sixth Directive that every transaction must normally be regarded as distinct and independent. ■ Secondly, a transaction which comprises a single supply from an economic point of view should not be artificially split, so as not to distort the functioning of the VAT system where two or more elements or acts supplied by the taxable person to the customer are so closely linked that they form, objectively, a single, indivisible economic supply, which it would be artificial to split.
PRINTING CONTRACTS – WHAT IS PRINCIPAL SUPPLY ??
■ In order to determine whether a single complex transaction, such as that at issue in the main proceedings, is to be classified as a supply of goods or as a supply of services, it is necessary to identify its predominant elements. ■ In that regard, it is clear from the case-law that a service must be regarded as ancillary to a principal service if it constitutes for customers not an aim in itself, but a means of better enjoying the principal service supplied. ■ In the circumstances of the case in the main proceedings, it cannot be disputed that the aim in itself of the reprographer's activities is the provision to his customers of copies of the original that those customers have previously provided to him, and that the compilation and sorting transactions prior to the delivery of those copies are merely a means by which the reprographer offers his customers the best possible
which it would be artificial to split.
PRINTING CONTRACTS – WHAT IS PRINCIPAL SUPPLY ??
■ In the main proceedings, the delivery by the reprographer of copies to the customer who
meaning of Article 5(1) of the Sixth Directive. That transfer relates, specifically, to the materials, in the present case sheets of paper, on which the reproduction was carried out, materials at the disposal of the reprographer prior to their delivery to the customer. As the reprographer's customer was never deprived of his right to dispose of the intangible content
reprographer relates exclusively to the materials allowing the delivery of the copies. In fact, the price invoiced by the reprographer for the copies made is determined by taking account not of the intellectual value of the original, but of the technical features of the copies to be made and the number of copies ordered. ■ It seems, therefore, that, in the circumstances of the main proceedings, reprographics activities such as those described in the order for reference are likely to have the characteristics of a supply of goods within the meaning of Article 5(1) of the Sixth Directive.
PRINTING CONTRACTS – WHAT IS PRINCIPAL SUPPLY ??
■ It should, however, be noted, as is apparent from paragraph 18 of the present judgment, that the classification as a supply of goods or a supply of services of reprographics activities such as those at issue in the main proceedings must take account of all the circumstances in which the activities are carried on. In particular, a reprographer's activities may not be limited to the mere reproduction of an original, but may involve various additional services such as advice and adapting, modifying and altering the original according to the customer's wishes, for the purposes of producing copies which are to a greater or lesser extent different from the original document initially provided by that customer. ■ In those circumstances, and having regard to the unique nature of the complex reprographics transaction as noted in paragraph 25 of the present judgment, it is for the referring court to determine, on the basis of the importance of those services for the customer, the degree to which the original document provided by the customer was processed, the time necessary for the performance of those services and the proportion of the total cost that they represent, whether those services are liable to be regarded as transactions which, far from being only minor
they constitute, over and above that mere reproduction, an aim in themselves for the recipient of those services.
VARIOUS SCENARIOS
Type Divisible Indivisible Composite Each transaction to be taxed independently To be taxed based on principle supply Mixed Cannot be termed as mixed supply To be taxed at the highest rate
SUPPLY ON APPROVAL BASIS
■ Many times suppliers of jewellery etc. who are registered in one State but may have to visit other States (other than their State of registration) and need to carry the goods (such as jewellery) along for approval. In such cases if jewellery etc. is approved by the buyer, then the supplier issues a tax invoice only at the time of supply. ■ Since the suppliers are not able to ascertain their actual supplies beforehand and while ascertainment of tax liability in advance is a mandatory requirement for registration as a casual taxable person, the supplier is not able to register as a casual taxable person. ■ Vide Circular No. 10/10/2017-GST dated 18th October, 2017 it has been clarified that on combined reading of Rule 55 as well as Rule 138 of the CGST Rules, 2017 the goods which are taken for supply on approval basis can be moved from the place of business of the registered supplier to another place within the same State or to a place outside the State on a delivery challan along with the e-way bill wherever applicable and the invoice may be issued at the time
SUPPLY ON APPROVAL BASIS
■ For this purpose, the person carrying the goods for such supply can carry the invoice book with him so that he can issue the invoice once the supply is fructified. It is further clarified that all such supplies, where the supplier carries goods from one State to another and supplies them in a different State, will be inter-state supplies and attract integrated tax in terms of Section 5 of the IGST Act, 2017. Said clarification would be applicable to all goods supplied under similar situations. ■ Let us find a similar situation. In case of exhibition, exhibiter also carries goods to the place of exhibition for display and eventual supply if the said goods are approved by the buyer. Here also it is not possible to ascertain the tax liability beforehand. Thus the principle applied in the case of jewellery shall squarely apply to such exhibiters also. Hence exhibiters are not required to obtain casual registration in the State where exhibition takes place. They can make IGST invoice from their registered place of business as and when the goods are sold from such exhibitions.
SUPPLY ON APPROVAL BASIS
■ Above principle is based on the logic that GST is a consumption based tax. Even if IGST is paid in the originating State, revenue of the same will be divided between Central Government and the State Government where consumption takes place. Hence the State where exhibition takes place shall not be a loser in terms of revenue. ■ One important point however to be noted is that if credit will get accumulated at the place of exhibition (e.g. GST on stall rent as place of supply shall be location of immovable property), there is no option but to obtain the registration at such place if
RESTAURANTS – NOTIFICATION NO. 46/2017
■ Supply, by way of or as part of any service or in any other manner whatsoever, of goods, being food or any other article for human consumption or drink, where such supply or service is for cash, deferred payment or other valuable consideration, provided by a restaurant, eating joint including mess, canteen, whether for consumption on or away from the premises where such food or any other article for human consumption or drink is supplied, other than those located in the premises of hotels, inns, guest houses, clubs, campsites or other commercial places meant for residential or lodging purposes having declared tariff of any unit of accommodation of seven thousand five hundred rupees and above per unit per day or equivalent. ■ Tax rate: 5% provided that credit of input tax charged on goods and services used in supplying the service has not been taken. ■ Difference between goods used in and used for – Commissioner of Sales Tax v. Vippy Solvex Products Pvt. Ltd. (1996) 29 VKN 516 MP & BHEL v. Addl Regional Asst Comm. (32 VKN 560 (MP)) distinguished Sec. 8(3)(b) of CST Act, 1956
RESTAURANTS
■ Outdoor catering will continue to be at 18% with full ITC. Part use for restaurant and part for outdoor catering, reversal u/s 17(2). ■ Explanation added after clause (ix) does not forbid charging tax separately. If one opts for composition he shall issue Bill of Supply.
SHARE BROKERS - F. No. 349/40/2017-GST
■ Sub-broker liable to register u/s 22 & not u/s 24 – not a persons who make taxable supply of goods or services or both on behalf of other taxable persons whether as an agent or otherwise. ■ STT & Stamp duty not part of assessable value as liability is of seller/buyer. ■ Interest on temporary funding extended to clients towards pay in obligations – Included if part of contract and excluded if service is provided as a loan.
MOTOR VEHICLE
■ Rate of tax on transport of passengers by/renting of any motor vehicle designed to carry passengers where the cost of fuel is included in the consideration charged from the service recipient shall be 5% provided that credit of input tax charged on goods and services used in supplying the service, other than the input tax credit of input service in the same line of business (i.e. service procured from another service provider of transporting passengers in a motor vehicle or renting of a motor vehicle), has not been taken. Otherwise rate shall be 12% (Notification No. 31/2017-Central Tax (Rate)). ■ Rate of tax on leasing services of motor vehicles purchased and leased prior to 1st July 2017 shall be 65 per cent of the rate of central tax as applicable on supply of like goods involving transfer of title in goods (Notification No. 31/2017-Central Tax (Rate)). Similarly rate of tax on supply of motor vehicles covered under Chapter 87 purchased prior to 1st July, 2017 shall be 65% of central tax applicable otherwise on such goods under Notification No. 1/2017-Central Tax (Rate) dated 28th June, 2017. Such supplier should not have availed input tax credit of central excise duty, Value Added Tax or any other taxes paid on such vehicles (Notification No. 37/2017-Central Tax (Rate)). Both such benefits shall not apply on or after 1st July, 2020
MOTOR VEHICLE
■
Morarji Brothers (I&E) Pvt. Ltd v. State of Maharashtra 1995 (99) STC 117 & Panacea Biotech Ltd. v. Commissioner of Trade [2013] 52 NTN DX 171. ■ Anand Decors v. Commissioner of Trade [2015] 53 taxmann.com 235 (Delhi) – Distinguished due to change in definition of ‘business’ – Sale of capital assets included by deeming fiction
Abhay.Desai@ydco.in 7874668953