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GST COUNSELLOR GSTC

VOLUME: 4 11th MAY, 2018 NUMBER: 14

Dear Readers,

Government’s tax department is toying with the idea of taxation to GST of the free Services (like

ATM etc) being provided to customers or public by the banks. This is going to open up a battle

ground for long drawn litigation as the revenue’s wild imagination may not withstand the test of

judicial scrutiny. Valuation for GST is transaction value which could be nil or zero also. It would

be interesting to watch this story unfold. However, minimum balance charges levied to not

maintain the stipulated balance is likely to attract GST as a declared service.

Sugar cess is in the news. GST Council discussed issue of levy of new cess called sugar cess to

provide for compensation to sugarcane producers. This may be levied in due course but the big

question which hinges is whether GST Council can recommend any new cess? The Constitution

mandates only one cess in the name of compensation cess.

E-way bills are now mandatory in almost parts of the country for inter-state and in most of the

states for intra-state movement of goods. Some left over states like Assam, Maharashtra etc have

also announced the dates.

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

GST Council’s 27th meeting held on 4th May, 2018, inter alia decided on few issues confronting the

GST operations. These include simplification of returns, incentive to promote of digital

transactions, imposition of sugar cess over and above 5% GST and reduction in GST rate on

ethanol, change in the shareholding pattern of GSTN etc.

First two complaints for anti-profiteering under section 171 of CGST Act, 2017 have been

dismissed by National Anti-profiteering Authority in the case of Vrandavaneshwree Automotive

Pvt. Ltd. (Honda car dealer) and KRBL Ltd. (India Gate basmati rice manufacturer).

Once GST stabilizes in due course, it ought to be further improved and refined and the reform

process must go on to see economic recovery and growth.

DATE: 01.05.2018 DR. SANJIV AGARWAL

v New Facilities on GST Portal

· Facility to fill and save Form ITC-04 online has been made available to taxpayers.

· Ease in filing of GSTR 6

ü Facility to file amendments in Form GSTR 6 ( table 6 & 9) has been made available to ISD.

ü Earlier validation check in the Portal allowed IGST credit to be distributed as CGST/SGST (UTGST) only, if the unit ( to which New Functionality distributed as CGST/SGST (UTGST) only, if the unit ( to which credit is being distributed by ISD) was located in the same State as that of ISD. This was not allowing ISD to distribute IGST as IGST, in such cases. Amendments has been made and now ISD can distribute credit of IGST either as IGST or SGST (UTST)/CGST, when the receiving unit is in the same State as that of the ISD.

ü ISD has now been provided with reset button in Form GSTR-6, even after “Submit” button is clicked (and entries are posted to the liability register). This is to enable them to rectify any mistakes made at the time of data submission and to correct the same with the newly provided reset button.

GOODS AND SERVICES TAX UPDATE

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GST COUNSELLOR GSTC

v Taxability of ‘tenancy rights’ under GST (Circular No. 44/18/2018-CGST dated

02.05.2018)

· The transfer of tenancy rights against tenancy premium , also known as “pagadi

system” is prevalent in India.

· The landlord also pays to tenant the prevailing tenancy premium to get the

property vacated.

· The activity of transfer of tenancy right against consideration in the form of

tenancy premium is a supply of service liable to GST.

· Merely because a transaction or a supply involves execution of documents which

may require registration and payment of registration fee and stamp duty, would

not preclude them from the scope of supply of goods and services and from

payment of GST.

· The transfer of tenancy rights cannot be treated as sale of land or building and

thus not taxed.

· The activity of transfer of ‘tenancy rights’ is squarely covered under the scope of

supply and taxable per-se. Transfer of tenancy rights to a new tenant against

consideration in the form of tenancy premium is taxable.

· Grant of tenancy rights in a residential dwelling for use as residence dwelling

against tenancy premium or periodic rent or both is exempt.

· Services provided by outgoing tenant by way of surrendering the tenancy rights

against consideration in the form of a portion of tenancy premium is liable to GST.

v Gist of Recent Advance Rulings

· Recruitment services to students of foreign universities aren’t ‘Export of services’;

taxable under GST

· GST Registration Mandatory If a Person is liable to pay Tax under Reverse Charge

Mechanism

· Supply of Food and Beverages in Trains not amount to ‘Service’: GST applicable.

· GST Leviable on Sale of Undivided and Impartible Share of Land represented by

Agreement to Sell

· Coaching services provided by private institutions are liable to 18% GST

· Supply of motor vehicles as scrap after its usage in business would attract GST

· No credit of Krishi Kalyan cess allowed under GST

· Setting Up & Operation of Solar Power Plant is in nature of ‘Works contract’, 18%

GST applicable

· GST payable on Providing Intermediary Service to Foreign University

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GST COUNSELLOR GSTC

· Tyres use in e-rickshaw are subject to levy of GST @ 28%

· Reinstatement and access charges which are paid to municipal authorities are for

restoring patches on street / road are taxable under GST

v GSTN to bring private entities for taxpayer profiling

· GST Network(GSTN) has invited bids from private entities for "360-degree"

profiling of taxpayers for early detection of fraud as it seeks to transform into an

end-to-end platform for checking GST evasion, from being just a tax collection

portal.

· The analytics company will have the mandate for designing and developing a

Fraud Analytics System..

· According to the eligibility criteria, the interested bidder should have experience in

implementing Advanced Analytics, the GSTN said in the Request For Proposal

(RFP).

· To ensure that there is no conflict of interest, the GSTN has barred Infosys from

bidding for the fraud analytics project.

· To ensure full confidentiality of data, GSTN has mandated that the eligible bidder

would have to ensure a separate section within their office premises for

undertaking the fraud analytics project.

· This indicates that taxpayers will be under strict surveillance and monitoring for

tax evasion.

v Recommendations of GST Council Meeting held on 04.05.2018

It its 27th meeting held on 4th May, 2018, GST Council, the high powered Constitutional body to take decisions on levy and administration of Goods and Service Tax in India considered various issues and concerns and made recommendations. These recommendations are subject to detailed consideration by Group of Ministers or other bodies and shall be implemented in due course. GST Council inter alia, made the following recommendations in its last meeting held on 04.05.2018:

· Towards Simplification of returns:

Government is keen to introduce the simplified return design at the earliest to reduce the compliance burden on the trade in keeping with the philosophy of ease of doing business. Returns shall be simplified also by reducing the content/information required to be filled in the return. The details of the design of the return form, business process and legal changes would be worked out by

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GST COUNSELLOR GSTC

the law committee based on these principles. Government is keen to introduce the simplified return design at the earliest to reduce the compliance burden on the trade in keeping with the philosophy of ease of doing business.

Council approved the principles for filing of new return design. The key elements of new return design are as follows:

- Returns shall be filed monthly by all taxpayers except composition dealer or dealers having NIL transaction and dates shall be based on turnover. Thus, Nil returns and composition returns shall be filed on quarterly basis.

- For unidirectional flow of invoices, the seller may upload invoices anytime during the month and become eligible for claiming credit. The buyer could see these uploaded invoices.

- There will be no need to upload purchase invoices. - There may be easy IT interface having the feature to calculate tax liability

just by uploading of invoices in relation to outward supplies and calculating ITC automatically

- There shall not be any automatic reversal of input tax credit from buyer on non-payment of tax by the seller.

- Recovery of tax or reversal of input tax credit shall be through a due process of issuing notice and order. The process would be online and automated to reduce the human interface

- There will be three stage Transition Model as follows: ü Stage I: the present system of filing returns, which suppose to

continue for period not exceeding 6 months. ü Stage II: New invoice wise return facility and claiming of ITC on

self declaration basis. ü Stage III: After 6 month of phase II, the facility of claiming ITC on

provisional basis will get withdrawn and input tax credit will only be limited to invoices uploaded by seller from whom dealer had purchased the goods.

- GSTR-I and GSTR 3B returns will continue for 6 months more.

· Incentive to promote of Digital Transaction

- With a view to promote less cash economy, Council discussed a proposal for concession of 2% in GST rates on B2C supplies for which payment is made through cheque or digital mode, subject to a ceiling of Rs. 100 per transaction. This may apply where GST rate is 3% or more, 1% each from applicable CGST and SGST rates

- The Council recommended to set a new Group of Ministers to consider and provide recommendation before the next Council meeting.

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GST COUNSELLOR GSTC

· Imposition of Sugar Cess over and above 5% GST and reduction in GST rate

on Ethanol:

The Council discussed the issue of imposition of sugar cess in view of record sugar production, consequent depressed sugar prices and buildup of sugar cane arrears, and reduction in GST rate on ethanol and recommended to set a new Group of Ministers from State Governments to provide recommendations within two weeks. There is no levy of sugar cess for the time being.

· Change in the Shareholding Pattern of GSTN

The Goods and Services Tax Network - Special Purpose Vehicle (GSTN-SPV) was created as a private limited, not-for-profit company under Section 25 of the Companies Act, 1956 (Section 8 of the Companies Act, 2013) with an objective to provide shared IT infrastructure and services to Centre and States Governments, tax payers and other stakeholders for implementation of Goods and Services Tax (GST) in the country.

- Presently, the Central Government and State Government are holding 24.5% equity shares respectively and the remaining 51% are held by non-Governmental institutions and through various mechanisms, GSTN is under strategic control of government.

- GST Council decided as follows: Acquisition of entire 51% of equity held by the Non-Governmental Institutions in GSTN amounting to Rs. 5.1 crore, equally by the Centre and the States governments and allow GSTN Board to initiate process for acquisition of equity held by the private Companies; and GSTN Board shall be allowed to continue the existing staff at existing terms and conditions for the a period upto five years, and shall have the flexibility of hiring people through contract on the terms and conditions similar to those used by GSTN till now while hiring regular employees.

- However, the existing financial commitments given by Centre and States to GSTN to share the capital and O&M cost of the IT Systems shall continue.

As a caution, readers are advised that the above recommendations shall be implemented after final decision of the Council and Notification thereof.

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GST COUNSELLOR GSTC

To curb tax evasion, authorities will start matching details given in the Goods and Services Tax Return (GSTR) Form Number 1 with those given in the e-way bill. The matching will begin with returns to be filed for April as it is the first month when the tax authorities will have both GSTR1 and e-way bill data. In the meantime, tax authorities have issued notices to over 8,000 assessees for differences in sales figures of more than Rs.50 lakh in their GSTR1 and GSTR3B forms. Notices have been served on the basis of returns filed during August and December, 2017. Based on their response, a decision will be taken on how much tax and penalty they need to pay. The logic behind matching is to plug any possible loophole in filing of returns. All the GST assessees are required to file GSTR 1 either on monthly or on quarterly basis while e-way bill is required for movement of goods of value exceeding Rs.50,000. However, the said mechanism will be partly effective/beneficial since only supply of goods can be traced by the matching concept. Further, e-way bill is required on movement of goods where consignment value exceeds Rs.50,000, he explained while adding that in cases where value of goods does not exceed Rs.50,000, matching would not be possible. Option has been given on the e-way bill portal to take reports for particular tax period from e-way bill portal and match with tax invoices for outward supply and inward supply/delivery challan. Information about e-way bills, along with the transactions captured in GSTR1, will make it easy to spot mismatches in certain cases where invoice has not been reported in GST return by the taxpayer or where taxpayer fails to file his returns or furnishes wrong details. In such cases, notice may be served by the authorities demanding clarifications for difference in tax amounts along with penalties. The said measures were adopted by the VAT authorities in the erstwhile regime also. Further in extreme cases, confiscation of goods, along with penalties may be imposed by the authorities. e-way bill was introduced from April 1. It is applicable for both inter-State and intra-States movement of goods, though the latter is being introduced on phases. So far, 18 States have adopted e-way system. Maharashtra and 7 Union Territories will start the new system for the intra state/UT movement of goods from May 25 while the others will do so by June 3. GSTN claims that there is capacity to generate e-way bill up to 70 lakh every day. At present, on an average 11-13 lakh e-way bills are being generated everyday. Nearly three-fourth of the e-way bills are related to inter-State trade while the remaining are for intra-State. However, once all the States start using e-way bill for internal movement, the ratio is expected to change to 50:50.

(SOURCE: BUSINESS LINE DATED 11.05.2018)

GOODS AND SERVICES TAX

GSTR1, E-WAY BILLS DATA TO BE MATCHED TO CURB TAX EVASION

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GST COUNSELLOR GSTC

The 27th GST (Goods and Services Tax) Council on Friday proposed a concession of 2% in GST rate (where the GST rate is 3% or more, 1% each from applicable Central GST and State GST rates) on B2C supplies, for which payment is made through cheque or digital mode. However, this is subject to a ceiling of Rs. 100 each transaction, so as to incentivise promotion of digital payment. The GST council has recommended for setting up of a Group of Ministers from State Governments to look into the proposal and make recommendations, before the next Council meeting, keeping in mind the views expressed in GST Council. The GST Council also recommended the issue of imposition of cess on sugar over and above 5% GST and also the reduction in GST rate on ethanol. Keeping in view the record production of sugar in the current sugar season, and consequent depressed sugar prices and build-up of sugarcane arrears, the Council discussed the issue of imposition of sugar cess. The GST Council meet on Friday was held via video conferencing. Mr Jaitley further said that the central government will own 50% in the GST Network, while the states will collectively hold the remaining half stake. Currently five private financial institutions HDFC, HDFC Bank, ICICI Bank, NSE Strategic investment and LIC housing finance together hold 51% stake in the GST Network. The last GST meet (26th GST Council meet) was held on March 10. As of now, the Government of India holds 24.5% equity in the GSTN and all States of the Indian Union, including NCT of Delhi and Puducherry, and the Empowered Committee of State Finance Ministers (EC), together hold another 24.5%. The balance 51% equity is with non-Government financial institutions. The company has been set up primarily to provide IT infrastructure and services to the Central and State Governments, tax payers and other stakeholders for implementation of the Goods and Services Tax (GST). The Authorised Capital of the company is Rupees ten crore only. The GST collection in April crossed the Rs. 1 lakh crore mark for the first time, indicating stabilisation of the new indirect tax regime that was rolled out on July 1 last year.

(SOURCE: BUSINESS LINE DATED 11.05.2018)

Hotel or restaurant services provided to SEZ developers or units will not be treated as zero-rated supplies and hence will be taxable under the Goods and Services Tax (GST) regime. In an application filed before the Karnataka bench of the AAR, the applicant had sought to clarify whether hotel accommodation and restaurant services provided by them, within the premises of the hotel, to the employees and guests of SEZ units be treated as supply of goods and services.

GST COUNCIL RECOMMENDS 2% CONCESSION IN TAX RATES IN CASE OF DIGITAL PAYMENTS

HOTEL, RESTAURANT SERVICES PROVIDED TO SEZ UNITS TAXABLE UNDER GST: AAR

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GST COUNSELLOR GSTC

The hotel accommodation and restaurant services being provided by the applicant, within the premises of the hotel, to the employees and guests of SEZ units, cannot be treated as supply of goods and services to SEZ units in Karnataka and hence they are the intra-state supply and are taxable accordingly. In the earlier service tax regime, the law provided that only services which are labelled as "authorised operation" will be treated as zero-rated supply to the SEZ. Such operations included supply of machinery, contractor, among others. Experts said GST laws did not specify which goods and services would be considered as "authorised operations" which created confusion about their taxability. Section 16 of the Integrated GST (IGST) Act, supply of goods or services or both to a special economic zone (SEZ) developer or unit are treated as zero-rated supply. Besides Section 12 of the IGST Act defines the place of supply of services by way of lodging accommodation by a hotel or for providing restaurant and catering services as the location where the services are actually performed. In the instant case, the applicant is located outside the SEZ. Therefore, the services rendered by the applicant are neither the part of authorised operations nor consumed inside the SEZ. The rendition of services of restaurant, short term accommodation and banqueting or conferencing cannot be said to have been imported or procured into SEZ unit or developer and therefore, the supply is intra-state supply. AMRG & Associates Partner Rajat Mohan said this ruling lays down that supplies made for authorised operations shall only be treated as supplies to SEZ developer/SEZ unit and would be zero-rated. Thereby every supplier to SEZ unit/ SEZ developer needs to check the taxability of the transactions that are aimed at other than authorised operations even though consumption is taking place in SEZ. Service providers to SEZ, especially hospitality industry, might get a tax demand with effect from July 2017, wherein the supplies were made to SEZ.

(SOURCE: BUSINESS TODAY DATED 11.05.2018)

India’s economic growth was pushed downward in 2017 due to the Goods and Services Tax (GST) as well as protracted issues of corporate and bank balance sheet problems, according to a U.N. report which said the country is expected to recover gradually and grow at 7.2% in 2018. According to estimates in the UN Economic and Social Commission for Asia and the Pacific’s (ESCAP) flagship publication, the Economic and Social Survey of Asia and the Pacific, India’s GDP grew at 6.6% in 2017, down from 7.1% in 2016. The report said that India’s GDP is forecast to grow 7.2% in 2018 and 7.4 per cent next year. In India, the recently introduced GST as well as weak corporate and bank balance sheets resulted in modest economic growth, but signs of recovery emerged in the second half of 2017.

GST, BANK BALANCE SHEET PROBLEMS PUSHED INDIA’S ECONOMIC GROWTH DOWNWARD, SAYS UN REPORT

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GST COUNSELLOR GSTC

The recently introduced Goods and Services Tax (GST) as well as protracted issues of corporate and bank balance sheet problems pushed the growth rate of India downward in 2017. Developing Asia-Pacific economies are on track to record an overall growth rate of 5.8% in 2017, compared with 5.4% the previous year. They are projected to grow by 5.5% in both 2018 and 2019, with a slight moderation in China offset by a recovery in India and steady performance in the rest of the region. A gradual recovery is expected; private investment is expected to revive as the corporate sector adjusts to GST, infrastructure spending increases and corporate and bank balance sheets improve with government support, the report said.

Tax reform and strengthening tax collection could also add as much as 8% to the gross domestic product (GDP) of countries such as Myanmar or Tajikistan; and about 3 to 4% in larger countries, like China, India or Indonesia, according to ESCAP. Further, weak corporate and bank balance sheets in India also contributed to a sharp slowdown in investment; thus, simply lowering policy interest rates was not enough to revive investment in that country. The new bankruptcy code and the recapitalization package for public sector banks are expected to support a gradual recovery in private investment.

The report said that consumption also strengthened as the impacts of demonetization faded. On the problem of bad loans, the report said the share of non-performing loans in the country has doubled, and defaults on corporate bonds and syndicated loans have surged in recent years. By mid-2017, distressed bank loans reached a record high of Rs.9.5 trillion ($148 billion), but more recent revelations suggest that the actual figure may be higher.

The banking problem is closely related to high corporate leverage; thus, the two problems are known as the ‘twin balance sheet’ challenge. If it does not effectively address that challenge, India will continue to face weak private investment and modest economic growth, it said. While it has been acknowledged that the GST has reduced the complexity of its taxation system, its tax laws still are perceived to be second most complex in the Asia-Pacific region — after those of China.

The report further noted that inflation accelerated in 2017 mainly as a result of increased food and fuel prices following severe floods in several countries and rising global oil prices. Higher inflation was also due to the housing rent allowances for civil servants and military staff recommended by the Seventh Pay Commission. With regard to the medium-term outlook, potential economic growth is on a downward trend in several countries owing to population ageing, slower capital accumulation and modest productivity growth, said United Nations Under-Secretary-General and ESCAP Executive Secretary. At the same time, rapid technological advancements, while promising immense opportunities are also posing considerable challenges in terms of job polarization and income and wealth inequalities.

(SOURCE: THE HINDU DATED 08.05.2018)

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GST COUNSELLOR GSTC

GST Network has invited bids from private entities for 360-degree profiling of taxpayers for early detection of fraud as it seeks to transform into an end-to-end platform for checking GST evasion, from being just a tax collection portal. The analytics company to be roped in will have the mandate for designing and developing a Fraud Analytics System. GST Network has however barred Infosys from bidding for the project to avoid conflict of interest. The system will take about an year to be operational and leverage existing data pertaining to GST registration, return filing and e-way bill, along with the information from other external sources such as Financial Intelligence Unit (FIU), Central Board of Direct Taxes (CBDT), banks and state tax departments. According to the eligibility criteria, the interested bidder will need to have a turnover of Rs 300 crore and should have posted profit in the past three financial years. Also, it should have experience in implementing Advanced Analytics, the GSTN said in the Request for Proposal (RFP). The fraud analytics company would be tasked with establishment of taxpayer's identity. "Based on information available within GSTN as well as third party information, it is expected to reliably establish the identity/360 degree view of the taxpayer and key members of its management. It would also establish taxpayer's risk profile by analyzing information on purchasers and sellers as part of returns data, whether the taxpayer deals with sensitive or evasion prone commodities, history of the owner of the company as well as rapid change of promoters, among others. The company, to be appointed for 6 years, would also be required to suggest ways to prevent revenue leakages and forecast revenue growth and other econometric analysis for policy formation. It can also suggest changes in laws, rules/ procedures based on fraud detection to plug loopholes and identify material/evidences which may be shared with tax authorities for prosecution of fraudulent taxpayers. To ensure that there is no conflict of interest, the GSTN has barred Infosys from bidding for the fraud analytics project. Infosys had in 2015 won the Rs 1,380-crore deal for developing and running GSTN's backend software and hardware. The indirect tax reform, GST subsumed over a dozen local taxes and was rolled out from July 1, 2017. GSTN has in the bid document mandated that the bidder should develop adequate capability for data storage and calculating complexity of data. n the near future, GSTN is likely to experience an 'explosion' in the amount of data in its transactional systems. The figure of data is likely to have quantum jump when the system such as E-way Bill data, external agency data like CBDT, information from banks, Ministry of Corporate Affairs, Shops and Establishments Department, other Government and non-government agencies etc. which will be integrated with the GST fraud analytics system.

GSTN TO ROPE IN PRIVATE ENTITIES FOR TAX PAYER PROFILING, FRAUD ANALYTICS

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GST COUNSELLOR GSTC

To ensure full confidentiality of data, GSTN has mandated that the eligible bidder would have to ensure a separate section within their office premises for undertaking the fraud analytics project. GSTN may also place one or two of its employee there for monitoring. GSTN may, in case required, provide desktops and laptops for day-to-day operations for carrying out fraud analytics. Besides, the people involved in the project would not be allowed to carry any storage device such as USB sticks etc. to GSTN premises. The GST Council, chaired by Finance Minister and comprising state counterparts, last week approved converting GSTN into a wholly owned government company. Currently 51 per cent stake in GSTN is held by private entities and 49 per cent by the Government.

(SOURCE: BUSINESS STANDARD DATED 08.05.2018)

It may be less than a year since the Goods and Services Tax (GST) was rolled out, but unscrupulous businesses seem to have already found ways to evade it. Tax authorities have found over 61 cases of evasion of GST since its rollout on July 1, 2017. Until February 2018, 61 cases of tax invasion involving Rs. 315.13 crore were detected. Officials said more cases have been detected in subsequent months, and pegged the total tax evaded at over Rs. 500 crore. While the DGGSI declined to comment on the means adopted to evade taxes, officials point out that under-reporting and availing wrong credit continues to be one of the most common ways. Sometimes there have been genuine errors by the taxpayers due to lack of knowledge about GST. This is most common in the filing of monthly returns, noted an official, adding that some businesses were also not paying GST despite being eligible. Tax officials have also made a number of arrests for suspected GST evasion. With the rollout of the new tax completing nearly one year, they also plan to be more stringent about evasion. Though revenue from GST crossed Rs.1 lakh crore in April, tax evasion has been a concern for both the Centre and the States, and they have been working to introduce measures to detect and curb revenue leakage. The GST Council has already introduced the e-way bill to check evasion in inter-State movement of goods. In its meeting on Friday, the Council is also expected to finalize new monthly return forms that will not only be simpler but also have more provisions to check tax leakage. In a report to the GST Council in its March 28 meeting, the GST Network said that using data analytics, it had also found divergences in the amount of Integrated GST and compensation cess paid by some importers and the input tax credit claimed by them. In some cases, it had also found major gaps in the self-declared liability in GSTR-1 and GSTR-3B. The GST Council has since then asked GSTN to expand its use of data analytics and look more closely into such divergences.

(SOURCE: BUSINESS LINE DATED 04.05.2018)

GST EVASION: 61 CASES INVOLVING Rs. 315.13 CRORE DETECTED TILL FEB

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GST COUNSELLOR GSTC

The GST Council approved a simplified return filing framework that would require a taxpayer to file only one return every month against three at present. The Council has set a period of six months for the transition to take place. However, there was no consensus on the proposal to levy Rs 3-a-kg sugar cess, and on incentives to promote digitization. The former evoked sharp protests from Kerala, West Bengal, and Andhra Pradesh in the three-hour meeting via video conferencing, chaired by Union Finance Minister. There was also no consensus on reducing the GST rate on ethanol, currently taxed at 18 per cent. Two groups of ministers (GoMs) will deliberate further on these matters and submit their reports in a fortnight. Kerala Finance Minister Thomas Isaac, one of the vocal critics of the sugar cess, is part of the panel headed by his Assam counterpart. The other GoM, on digitisation, will be headed by Bihar’s deputy chief minister. Earlier, the GSTR-2 buyer return form and GSTR-3 input-output return form had been suspended. GSTR-1, the seller return, and GSTR-3B, the summary input-output return, were to continue till June 30. Now, GSTR-3B and GSTR-1 will continue till the single return replaces these in about six months. The new system will be rolled out in the second stage. In that, provisional credit will be allowed to a buyer under the GST for six months, based on his own calculations, even if the seller does not upload the deal invoices. In the third stage, after the system is deemed to have stabilized, no provisional input tax credit will be allowed for buyers. Input tax credit will be made available only when the seller uploads the invoice. However, liability to pay the tax will be on the seller. If the seller does not pay the tax, the government will recover it from the seller. If this cannot be done, effort will be made to recover the tax from the buyer, under the law. Those having no transactions and those under the composition scheme will be filing quarterly returns. Finance Minister said the GST Council took note of the distress in the sugar sector, with the cost of production exceeding its market price, resulting in farmers not being paid for the sugarcane they have supplied to mills. The cost of sugar has risen beyond Rs 35 per kg and the market price is between Rs 26 and Rs 28 per kg. Sugarcane farmers are in deep distress…(Hence) can we impose some kind of cess? was the issue he posed. After the GST has been implemented, this is the first (such) suggestion to have come up. How are such contingencies to be addressed in the GST regime -- by imposition of cess or temporarily by increasing the tax or by some alternative method of revenue raising? Most states were against the proposal. The non-sugar producing states argued they would not get a portion of the cess collected from taxpayers of their states. The finance minister of West Bengal, said the sugar levy plan violated every principle of the GST. He noted, UP and Maharashtra (the two largest producers) would benefit. Sugarcane farmers must be protected. The 3 per cent GST cess (proposed) will fetch only Rs 7,000 crore (Rs 70 billion). Why can't it be met from central budgets, rather than through distorting the GST? I shall agree to a cess only if similar treatment is offered to rubber. The

GST COUNCIL OKAYS SINGLE RETURN A MONTH; DIFFERENCES EMERGE ON SUGAR CESS

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GST COUNSELLOR GSTC

proposed cess will be outside the purview of the compensation cess under the GST and will require a separate law. The cess will be imposed through an ordinance once the Council approves it. Currently, only compensation cess is within the purview of GST law. It is levied on a handful of luxury and demerit' items in the 28 per cent GST slab, to compensate states for revenue shortfall due to the GST implementation for the first five years. The proposal to incentivize digital payments by 2 percentage points was deferred for further discussion. According to the proposal, a 2 percentage point discount will be available in the GST for those paying digitally, subject to a ceiling of Rs 100 a transaction. This was to be made available for business-to-consumer (B2C) transactions for goods and services that face a tax rate of 3 per cent or more. The incentive will comprise a 1 per cent concession on Central GST and another 1 per cent on State GST. Another view was to have a 'negative list' of items, on which this incentive would not apply.

(SOURCE: BUSINESS STANDARD DATED 05.05.2018)

Due dates of various filings in May, 2018

S.No. Return/Form Period Due Date

1. GSTR-1 (Monthly)

(for turnover > Rs. 1.5 crore) 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

OBLIGATIONS UNDER GOODS AND SERVICES TAX

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GST COUNSELLOR GSTC

§ In Samaj Parivartana Samudaya & Ors. v. State of Karnataka & Ors. (2017) 10 TMI 255

(Supreme Court), on question of whether lessee can claim input tax credit under CGST

Act, 2017 in case of an e-auction transaction, it was held that the GST payable on the

sale value of the mineral purchased in the e-auction shall be paid by the buyer directly

to the lessee and the lessee would be responsible for all compliances as may be required

under Act. The Monitoring Committee was directed to prepare appropriate proforma and

also take steps for carrying proper Tax Identification Number of the respective lessees

on the invoices as may be required. It was further directed that the GST payable on the

sale value of the mineral purchased in the e-auction shall be paid by the buyer directly

to the lessee and the lessee would be responsible for all compliances as may be required

under Act.

§ In Samsung (India) Electronics (P) Ltd. v. Commissioner of Commercial Taxes, UP

Lucknow, (2017) 12 TMI 202; (2018) 90 taxmann.com 92; (2018) 66 GST 1 (Allahabad),

the assessee sold mobile/cellphone with battery charger in same packing and there was

no intention of assessee appears to affect a separate or distinct sale of charger and

single retail package did not carry or bear a separate MRP for charger included therein

and that it was also not separately identified on package. Therefore, it was held that

since there was no intention of assessee to affect a separate or distinct sale of charger

and no separate price was fixed or declared for charger, charger contained in a

composite package would not be eligible to be taxed separately.

GST CASE LAWS

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GST COUNSELLOR GSTC

Circular No. 44/18/2018-CGST dated 02.05.2018

F. No. 341/28/2017-TRU

Subject: Issue related to taxability of ‘tenancy rights’ under GST- regarding

Doubts have been raised as to,-

(i) Whether transfer of tenancy rights to an incoming tenant, consideration for which is in form of tenancy premium, shall attract GST when stamp duty and registration charges is levied on the said premium, if yes what would be the applicable rate?

(ii) Further, in case of transfer of tenancy rights, a part of the consideration for such transfer accrues to the outgoing tenant, whether such supplies will also attract GST?

2. The issue has been examined. The transfer of tenancy rights against tenancy premium which is also known as “pagadi system” is prevalent in some States. In this system the tenant acquires, tenancy rights in the property against payment of tenancy premium(pagadi). The landlord may be owner of the property but the possession of the same lies with the tenant. The tenant pays periodic rent to the landlord as long as he occupies the property. The tenant also usually has the option to sell the tenancy right of the said property and in such a case has to share a percentage of the proceed with owner of land, as laid down in their tenancy agreement. Alternatively, the landlord pays to tenant the prevailing tenancy premium to get the property vacated. Such properties in Maharashtra are governed by Maharashtra Rent Control Act, 1999.

3. As per section 9(1) of the CGST Act there shall be levied central tax on the intra-State supplies of services. The scope of supply includes all forms of supply of goods and services or both such as sale, transfer, barter, exchange, licence, rental, lease or disposal made or agreed to be made for a consideration by a person in the course or furtherance of business and also includes the activities specified in Schedule II. The activity of transfer of tenancy right against consideration in the form of tenancy premium is a supply of service liable to GST. It is a form of lease or renting of property and such activity is specifically declared to be a service in para 2 of Schedule II i.e. any lease, tenancy, easement, licence to occupy land is a supply of services

4. The contention that stamp duty and registration charges is levied on such transfers of tenancy rights, and such transaction thus should not be subjected to GST, is not relevant. Merely because a transaction or a supply involves execution of documents which may require

GOODS AND SERVICES TAX : FROM THE GOVERNMENT

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GST COUNSELLOR GSTC

registration and payment of registration fee and stamp duty, would not preclude them from the scope of supply of goods and services and from payment of GST. The transfer of tenancy rights cannot be treated as sale of land or building declared as neither a supply of goods nor of services in para 5 of Schedule III to CGST Act, 2017. Thus a consideration for the said activity shall attract levy of GST.

5. To sum up, the activity of transfer of ‘tenancy rights’ is squarely covered under the scope of supply and taxable per-se. Transfer of tenancy rights to a new tenant against consideration in the form of tenancy premium is taxable. However, renting of residential dwelling for use as a residence is exempt [Sl. No. 12 of notification No. 12/2017-Central Tax(Rate)]. Hence, grant of tenancy rights in a residential dwelling for use as residence dwelling against tenancy premium or periodic rent or both is exempt. As regards services provided by outgoing tenant by way of surrendering the tenancy rights against consideration in the form of a portion of tenancy premium is liable to GST.

6. Difficulty if any, in the implementation of this circular may be brought to the notice of the Board.

-----------------

PRESS RELEASE dated 04.05.2018

Change in the Shareholding Pattern of GSTN The Goods and Services Tax Network - Special Purpose Vehicle (GSTN-SPV) was created as a private limited, not-for-profit company under Section 25 of the Companies Act, 1956 (Section 8 of the Companies Act, 2013) by Govt. of India on 28th March, 2013 with an objective to provide shared IT infrastructure and services to Centre and States Governments, tax payers and other stakeholders for implementation of Goods and Services Tax (GST) in the country.

Presently, the Central Government and State Government are holding 24.5% equity

shares respectively and the remaining 51% are held by non-Governmental institutions and through various mechanisms, GSTN is under strategic control of government. Majority of the GST processes including registration, filing of returns, payment of taxes, processing of refunds is IT driven and GSTN is handling large-scale invoice level data of lakhs of business entities including data relating to exports and imports. Considering the nature of 'state' function performed by GSTN, Council felt that GSTN be converted into a fully owned government Company.

In view of the above, Council decided: Acquisition of entire 51% of equity held by the Non-Governmental Institutions in GSTN amounting to Rs. 5.1 crore, equally by the Centre and the States governments and allow GSTN Board to initiate process for acquisition of equity held by the private Companies; and GSTN Board shall be allowed to continue the existing staff at existing terms and conditions for the a

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GST COUNSELLOR GSTC

period upto five years, and shall have the flexibility of hiring people through contract on the terms and conditions similar to those used by GSTN till now while hiring regular employees. The existing financial commitments given by Centre and States to GSTN to share the capital and O&M cost of the IT Systems shall continue.

-----------------

PRESS RELEASE dated 04.05.2018

Return Simplification

GST Council today (4th May, 2018) in its 27th meeting approved principles for filing of new return design based on the recommendations of the Group of Ministers on IT simplification. The key elements of the new return design are as follows -

(i) One monthly Return: All taxpayers excluding a few exceptions like composition dealer shall file one monthly return. Return filing dates shall be staggered based on the turnover of the registered person to manage load on the IT system. Composition dealers and dealers having Nil transaction shall have facility to file quarterly return.

(ii) Unidirectional Flow of invoices: There shall be unidirectional flow of invoices uploaded by the seller on anytime basis during the month which would be the valid document to avail input tax credit by the buyer. Buyer would also be able to continuously see the uploaded invoices during the month. There shall not be any need to upload the purchase invoices also. Invoices for B2B transaction shall need to use HSN at four digit level or more to achieve uniformity in the reporting system.

(iii) Simple Return design and easy IT interface: The B2B dealers will have to fill invoice-wise details of the outward supply made by them, based on which the system will automatically calculate his tax liability. The input tax credit will be calculated automatically by the system based on invoices uploaded by his sellers. Taxpayer shall be also given user friendly IT interface and offline IT tool to upload the invoices.

(iv) No automatic reversal of credit: There shall not be any automatic reversal of input tax credit from buyer on non-payment of tax by the seller. In case of default in payment of tax by the seller, recovery shall be made from the seller however reversal of credit from buyer shall also be an option available with the revenue authorities to address exceptional situations like missing dealer, closure of business by supplier or supplier not having adequate assets etc.

(v) Due process for recovery and reversal: Recovery of tax or reversal of input tax credit shall be through a due process of issuing notice and order. The process would be online and automated to reduce the human interface.

(vi) Supplier side control: Unloading of invoices by the seller to pass input tax credit who has defaulted in payment of tax above a threshold amount shall be blocked to control misuse of input tax credit facility. Similar safeguards would be built with regard to newly registered

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GST COUNSELLOR GSTC

dealers also. Analytical tools would be used to identify such transactions at the earliest and prevent loss of revenue.

(vii) Transition: There will be a three stage transition to the new system. Stage I shall be the present system of filing of return GSTR 3B and GSTR 1. GSTR 2 and GSTR 3 shall continue to remain suspended. Stage I will continue for a period not exceeding 6 months by which time new return software would be ready. In stage 2, the new return will have facility for invoice-wise data upload and also facility for claiming input tax credit on self declaration basis, as in case of GSTR 3B now. During this stage 2, the dealer will be constantly fed with information about gap between credit available to them as per invoices uploaded by their sellers and the provisional credit being claimed by them. After 6 months of this phase 2, the facility of provisional credit will get withdrawn and input tax credit will only be limited to the invoices uploaded by the sellers from whom the dealer has purchased goods. 2. Content of the return and implementation: Return shall be simplified also by reducing the content/information required to be filled in the return. The details of the design of the return form, business process and legal changes would be worked out by the law committee based on these principles. Government is keen to introduce the simplified return design at the earliest to reduce the compliance burden on the trade in keeping with the philosophy of ease of doing business.

-----------------

PRESS RELEASE PRESS dated 04.05.2018

NOTE IN RESPECT OF CHANGES IN GST RATE

[As per discussions in the 27nd GST Council Meeting held on 4th May, 2018]

1.Incentive to promote Digital Transactions:

Keeping in view the need to move towards a less cash economy, the Council has discussed in detail the proposal of a concession of 2% in GST rate [where the GST rate is 3% or more, 1% each from applicable CGST and SGST rates] on B2C supplies, for which payment is made through cheque or digital mode, subject to a ceiling of Rs. 100 per transaction, so as to incentivise promotion of digital payment.

The council has recommended for setting up of a Group of Ministers from State Governments to look into the proposal and make recommendations, before the next Council meeting, keeping in mind the views expressed in GST Council.

2.Imposition of Sugar Cess over and above 5% GST and reduction in GST rate on ethanol:

Keeping in view the record production of sugar in the current sugar season, and consequent depressed sugar prices and build-up of sugarcane arrears, the Council discussed the issue of imposition of sugar cess and reduction in GST rate on ethanol in great detail.

The council has recommended for setting up of a Group of Ministers from State Governments to look into the proposal and make recommendations, within two weeks, keeping in mind the views expressed in GST Council in this regard.

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GST COUNSELLOR GSTC

STATUS OF REGISTRATION & RETURN FILING:

S. No. Details As on 01st May, 2018

1. No. of transited (migrated) taxpayers 66,33,402 2. Of which, how many did not opt for complete

migration 1,97,082

3. No. of completely migrated taxpayers 64,36,320 4. Total No. of new applications received for registration 51,31,469 5. No. of applications approved 44,10,338 6. No. of applications rejected 6,15,991 7. No. of applications which are still in process 1,05,140 8. Total No. of taxpayers; new + migrated (3 + 5) 1,08,46,658 9. No. of taxpayers who have opted for composition

scheme 20,07,119

10. No. of 3 (B) returns filed for July, 2017 63,95,556 11. No. of 3(B) returns filed for August, 2017 68,63,945 12. No. of 3(B) returns filed for September, 2017 71,25,202 13. No. of 3(B) returns filed for October, 2017 67,97,880 14. No. of 3(B) returns filed for November, 2017 67,88,825 15. No. of 3(B) returns filed for December, 2017 67,77,191 16. No. of 3(B) returns filed for January, 2018 67,37,400 17. No. of 3(B) returns filed for February, 2018 66,41,318 18. No. of 3(B) returns filed for March, 2018 60,66,551 19. No. of GSTR 1 returns filed for July, 2017 56,91,216 20. No. of GSTR 1 returns filed for August, 2017 22,51,097 21. No. of GSTR 1 returns filed for September, 2017 60,74,232 22. No. of GSTR 1 returns filed for October, 2017 22,65,274 23. No. of GSTR 1 returns filed for November, 2017 22,59,271 24. No. of GSTR 1 returns filed for December, 2017 57,69,486 25. No. of GSTR 1 returns filed for January, 2018 20,28,400 26. No. of GSTR 1 returns filed for February, 2018 18,60,907 27. No. of GSR 1 returns filed for March, 2018 31,14,413 28. No. of GSTR 2 returns filed for July, 2017 25,72,552 29. No. of GSTR 4 returns filed for quarter July-

September, 2017 9,25,926

30. No. of GSTR 4 returns filed for quarter October-December, 2017

13,45,580

31. No. of GSTR 4 returns filed for quarter January-March, 2018

11,71,471

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

21

GST COUNSELLOR GSTC

S.No Legal Maxim Meaning 1. Audi alteram partem Both sides shall be heard; Principle of natural

justice. According to this principle, which is the

principle in every civilized jurisprudence, a person

against whom any action is sought to be taken or

a person whose rights or interests are to be

affected should be given a reasonable opportunity

to defend himself

2. Ex abundanti cautela Out of an abundance of caution; someone taking

precautions against very remote contingences

3. Idem The same person or thing; used in citations to

indicate the cited source came from the same

source as the preceding one, though not

necessarily the same page or location.

4. Habeas corpus A writ requiring a person under arrest to be

brought before a judge or into court, especially to

secure the person's release unless lawful grounds

are shown for their detention.

5. Ipse dixit A dogmatic and unproven statement , he himself

said it; there is no other authority

LET’S LEARN LEGAL MAXIMS

22

GST COUNSELLOR GSTC

INVOICES UNDER GST

Type of Invoice Section/

Rule Who can Issue When to Issue

Invoice or Tax invoice

sec 2(66), 31, r46

Registered person In case of supply of goods-at the time of supply of goods

In case of supply of services-within prescribed time (30 or 45 days)

Bill of supply r49 Registered person In case where-

(a) person paying amount under composition scheme and

(b) supplying exempted goods and/or services

Consolidated Invoice

sec 31(3)(f) Registered person In respect of all such supplies which are having value less than INR 200.

[At the end of each day]

Receipt voucher r50 Registered person On receipt of advance against any supply of goods or services

Refund voucher r51 Registered person When no supply is made and no tax invoice is issued against any receipt

DECODING GST LAW

23

GST COUNSELLOR GSTC

Type of Invoice Section/

Rule Who can Issue When to Issue

voucher

Credit note r53 Registered person who has already

issued tax invoice

Taxable value/tax charged is in excess than required

Debit note r53 Registered person who has already

issued tax invoice

Taxable value/tax charged is short than required.

Supplementary invoice

Registered person who has already

issued tax invoice

In case where any deficiency is found in tax invoices issued earlier.

Revised tax invoice

r53 Registered taxable person who has

already issued tax invoice

Within one month after grant of registration for the period between effective date and date of issuance of certificate of registration

Consolidated invoice

Proviso to r46

Registered person covered under

sec 9(4)

At the end of month and for sec 9(4) supplies if aggregate value of all supplies exceed INR 5000 per day from any or all suppliers.

Note: The said invoice shall not required till 31.03.2018

Payment voucher r52 Registered person liable to pay tax u/s 9(3) or 9(4)

On date of receipt of supply and on making payment.

Note: For section 9(4), no payment voucher shall required to be issued till 31.03.2018

24

GST COUNSELLOR GSTC

GST COLLECTIONS MAY NOT INDICATE ECONOMIC REVIVAL ?

In first nine months of Financial Year 2017-18 when GST was in force w.e.f. 1st July, 2017,

GST collections have averaged @ Rs. 89800 crore per month. Effectively it is for eight months

as GST is collected in the following month. The GST collection in 2017-18 (9 months) has

averaged @ Rs. 89800 crore per month which is on a lower side (provisional but including cess

totaling Rs. 7.41 lakh crore).

For the first time, GST collection has crossed Rs. 1 lakh crore mark in April 2018. However,

this collection pertains to economic activities generated and performed in March, 2018 or

earlier based on tax invoices issued during the relevant period. GST collections in April, 2018

amount to Rs. 103458 crore, the breakup of which is follows:

GST Revenue Collection

Tax (Rs. in crore)

CGST 18652

SGST 25704

IGST 50548

Compensation Cess 8554

Total 103458

According to Ministry of Finance Press Release dated 27.04.2018, 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.The

GOODS AND SERVICES TAX UNDERSTANDING

25

GST COUNSELLOR GSTC

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 a financial year, people also try to pay

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

taken either as trend for the future or a signal of economic recovery. It is just a reflection of

hectic economic activities in the last month of the financial year.

The data indicates that there are more economic activities in inter-state than intra-state as

IGST collected is 48% of total tax where as aggregate of CGST and SGST is 43% only. In case of

inter-state transactions, only IGST is charged @ GST rate which is sum of rate for CGST and

SGST whereas in intra-state transactions, 50% of IGST rate is charged each as CGST and

SGST.

People in Government and economists look at it in their own way attributing this so called

achievement to better compliances and economic revival. If one looks at tax collections in pre-

GST regime, this is not an achievement. Two major central taxes (Central Excise Duty and

Service Tax) alone amounted to about Rs. 7 lakh crore. If we add other taxes including value

added tax of all states it would lead to the conclusion that there a nothing worth celebrating.

Further, this collection is for March, 2018 which has been collected in April, 2018. March is

considered to be a month of hectic economic activities, it being the last month of the financial

year and increased tendency of sales and profit booking. In other words, March is not a median

month to be compared to other months. Yes, tax compliances have certainly increased under

GST regime which may be one of the factors for enhanced tax collections.

One needs to wait, watch and see if this could be sustained over a period. It also need to grow

atleast at a pace at which economy is growing. GST Council has set a target of Rs. 12 trillion

for GST collection for 2018-19, buoyed by higher tax compliance in first year of GST regime.

However, Government should look at the revenue collection over a period, say, atleast on a

quarterly basis. From 2018-19 fiscal, the government is shifting to a cash basis of accounting

where revenues accrued at the completion of a month would be taken on record immediately at

the end of the month.

A ray of hope can be seen in the e-way bill system which may lead to better tax compliances

and act as a deterrent for tax evasion and tax avoidance. Tax collections may also rise when

TDS / TCS provisions are brought into action in near future.

26

GST COUNSELLOR GSTC

PROGRAMME : Two Day National Conference on GST

DATE : 1st & 2nd June, 2018

VENUE : IMA House, Kochi.

CONTACT : ernakulam@icai.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, compliance rating and recent case

laws in GST

27

GST COUNSELLOR GSTC

· Gist of recent pronouncements on GST (Part-IX) - Dr. Sanjiv Agarwal,

www.taxmanagementindia.com, dated 01.05.2018.

· GST collection: does it mean economic revival – Dr. Sanjiv Agarwal,

www.taxguru.co.in, dated 02.05.2018.

· Quantity discount under indirect tax – Dr. M. Govindarajan, GSTL, Vol. 12 : Part

1, dated 03.05.2018.

· Inspection search, seizure arrest under GST – Remesh Chandra Jena, GSTL, Vol.

12 : Part 1, dated 03.05.2018.

· Input tax credit not admissible for accumulated cess carried forward – TNC

Rajagopalan, Business Standard, dated 08.05.2018.

· First case on anti-profiteering in GST in assessee’s favour- Dr. Sanjiv Agarwal,

Business Advisor, dated 10.05.2018.

· Sugar –coat this tax – S Murlidharan, Business Line, dated 11.05.2018.

· Seven Ds for Independent Directors – R. Gopalakrishnan, Business Standard,

dated 11.05.2018.

GST LITERATURE

28

GST COUNSELLOR GSTC

QUOTE OF THE FORTNIGHT!!

Until you spread your wings, you will have no idea how far you can fly.

Life is not about finding yourself, life is about creating yourself.

GST CAPSULE!!

“It was agreed that the 51 % held by private entities (in GSTN) should be taken over

by the Government and eventually, the Central Government with hold 50% and State

Government with hold 50%.”

Mr. Arun Jaitley Finance Minister

(After 27th GST Council Meeting)

GST HUMOUR!!

Two taxpayers were over heard chatting : One - GST is too sweet a tax. Other one - Tax! and sweet !! Are you joking. First one - No! I am serious. That’s why GST Council’s now considering imposing a sugar cess as a part of GST, though only compensation cess can be levied under GST regime. Second one - Sugar cess will compensate ! Whom but !!

29

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

30

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

31

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