gst update month of april-may 2021 (part-i) || online

GST Update Month of April-May 2021 (Part-I) || Online Publication- 08.05.2021

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Online Edition :08.05.2021

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B.Com, LL.B

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2

S.No CONTENTS Page No.

1. Important GST Due Date Calendar 4-6

2. Important Notification 7-9

3. Advance Ruling Mechanism in GST

Introduction

Objectives of Advance Ruling

What is an Advance Ruling?

What are the matters/questions specified in Section 97(2)

& Section 100(1) of the CGST Act, 2017

‘Authority for advance ruling’ (AAR) and ‘Appellate

authority for advance ruling’ (AAAR)

To whom the Advance Ruling is applicable

Time period for applicability of Advance Ruling

Procedure for obtaining Advance Ruling

Appeals against order of AAR

Manual Filing of applications before AAR & AAAR

Form and Manner of Application to the Authority for

Advance Ruling

Form and Manner of Appeal to the Appellate Authority

for Advance Ruling

Rectification of Mistakes

Powers and procedure of AAR and AAAR

10-18

4. Advance Ruling-By AUTHORITY ON ADVANCE RULINGS

GST on pick-up charges paid to the owner /

driver Case Name: In re Kou-Chan Technologies Private

Limited (GST AAR Karnataka)

19-25



3

GST on contract relating to electrical

works from sub-contractor for work of

Government Company Case Name : In re Hadi Power Systems (GST AAR

Karnataka)

Input Tax Credit eligible on free supply

of goods as a part of CSR activities Case Name : In re Dwarikesh Sugar Industries

Limited (GST AAR Uttar Pradesh)

GST on Supply of catering services to

educational institution Case Name: In re Manoj Mittal (GST AAR West

Bengal)

Supply of software licence – supply of

goods or services? Case Name: In re SPSS South Asia Pvt. Ltd (GST

AAR Karnataka)

GST on supervision charges of

loading/unloading/transportation of

agricultural produc Case Name: In re Karnataka State Warehousing

Corporation (GST AAR Karnataka)

5. GST Case law: - HC denies Bail in alleged Rs. 18

Crore fake Input Tax Credit Case CRM-M No.8190 of 2021 (O&M) Decided on: 24.03.2021

Mohit Bathla

Versus

Central Goods and Service Tax Division Panipat

26-29



4

IMPORTANT GST COMPLIANCE DUE DATES

Return/Form Type Period Relief in Interest for No. of days

Notification No.

Turnover more than 5Crs

March 2021 & April 2021

9% p.a for first 15days from Due Date 18% p.a thereafter

Seeks to provide relief by lowering of interest rate for the month of March and April, 2021

GSTR 3B Notification Number: - 08/2021 -Central Tax

Turnover upto 5Crs (Monthly Filers)


Nil for First 15 days from Due Date; 9% p.a for next 15 days;18% p.a thereafter

Turnover upto 5Crs(QRMP Scheme)

Jan To Mar-21 Quarter

Nil for First 15 days from Due Date; 9% p.a for next 15 days;18% p.a thereafter

Form GSTR 3B Turnover > 5Crs


15 days from due date of furnishing return

Seeks to amend notification no.

76/2018-Central Tax in order to provide waiver of late fees for specified taxpayers and specified

tax periods

Notification Number: 09/2021 – Central Tax

(Late Fees Waiver)

Form GSTR 3B Turnover upto 5 Crs (Monthly Filers)



Form GSTR 3B Turnover upto 5Crs(QRMP Scheme)

Jan To Mar-21 Quarter


(1) Important GST Due Date Calendar



5 Return/Form Type Period Due Date Extended

Due Date Notification No.

Form GSTR – 4 (Composition Dealer)

FY 2020-21 30th April 2021

31st May 2021

Seeks to extend the due date for filing FORM GSTR-4 for financial year 2020-21 to 31.05.2021 Notification Number: - 10/2021 – Central Tax

Form GST ITC – 04(Job Work)

FY 2020-21 25th April 2021

31st May 2021

11/2021 – Central Tax

Form GSTR 1 Month of April

11th May 2021

26th May 2021

Extend the due date of furnishing FORM GSTR-1 for April, 2021 Notification Number: -12/2021 – Central Tax

IFF (Invoice Furnishing Facility)

Month of April

13th May 2021

28th May 2021

Notification Number: 13/2021 – Central Tax

Relaxation ITC Availment Rule 36(4) i.e.105% Cap on availment of ITC

Month of April

Rule 36(4) adjustment for Apr-21 & May-21 applicable on Cumulative basis in GTR 3B of May-21

Completion of Proceeding or passing of order or issuance of notice, intimation, Filing of Appeal, Reply

15th April, 2021 to 30th May, 2021

Extension up-to 31 May, 21 Seeks to extend specified

compliances falling between

15.04.2021 to 30.05.2021 till



6

Rule 9 (Registrations) – CGST, 2017actions

1st May, 2021 to 31st May, 2021

Extension up-to 15 June, 21

31.05.2021 in exercise of powers under section 168A

of CGST Act. Notification

Number: -14/2021 – Central Tax (Extension of Time Limits)

GST Refund Order u/s54(5)

15th April, 2021 to 30th May, 2021

15 days after the receipt of reply or 31 May, 21 whichever is Later



7

Notification No: - 06/2021-Central Tax dated 30.03.2021

Seeks to waive penalty payable for non-compliance of provisions of

Notification No. 14/2020 dated 21st March 2020.

G.S.R……(E):- In exercise of the powers conferred by section 128 of the Central

Goods and Services Tax Act, 2017 (12 of 2017), the Government, on the

recommendations of the Council, hereby makes the following amendments in

notification of the Government of India in the Ministry of Finance (Department of

Revenue), No. 89/2020 – Central Tax, dated the 29th November, 2020, published in

the Gazette of India, Extraordinary, Part II, Section 3, Subsection (i), vide number

G.S.R. 745(E), dated the 29th November, 2020, namely:– In the said notification, –

i. in the first paragraph, for the figures, letters and words, “31st day of March”, the

figures, letters and words “30th day of June”, shall be substituted; (

ii. ii) in the first paragraph, for the figures, letters and words, “01st day of April”,

the figures, letters and words “1st day of July”, shall be substituted.

[F. No-20/16/38/2020-GST]

(Rajeev Ranjan)

Under Secretary to the Government of India

Notification No: - 07/2021-Central Tax dated 27.04.2021

Seeks to make second amendment (2021) to CGST Rules.

G.S.R……(E). - In exercise of the powers conferred by section 164 of the Central Goods and Services Tax Act, 2017 (12 of 2017), the Government, on the recommendations of the Council, hereby makes the following rules further to amend the Central Goods and Services Tax Rules, 2017, namely: - 1. (1) These rules may be called the Central Goods and Services Tax (Second

(2) Important Notification



8 Amendment) Rules, 2021. (2) These rules shall come into force on the date of their publication in the Official Gazette. 2. In the Central Goods and Services Tax Rules, 2017, in rule 26 in sub-rule (1), after the third proviso, the following proviso shall be inserted, namely:- “Provided also that a registered person registered under the provisions of the Companies Act, 2013 (18 of 2013) shall, during the period from the 27th day of April, 2021 to the 31st day of May, 2021, also be allowed to furnish the return under section 39 in FORM GSTR-3B and the details of outward supplies under section 37 in FORM GSTR-1 or using invoice furnishing facility, verified through electronic verification code (EVC).”.

[F. No. CBEC-20/06/08/2020-GST]

(Rajeev Ranjan) Under Secretary to the Government of India

G.S.R…(E).- In exercise of the powers conferred by section 164 of the Central Goods and Services Tax Act, 2017 (12 of 2017), the Government, on the recommendations of the Council, hereby makes the following rules further to amend the Central Goods and Services Tax Rules, 2017, namely:- 1. Short title and commencement. – (1) These rules may be called the Central Goods and Services Tax (Third Amendment) Rules, 2021. (2) These rules shall come into force on the date of their publication in the Official Gazette. 2. In the Central Goods and Services Tax Rules, 2017,---- (i) in sub-rule (4) of rule 36, after the first proviso, the following proviso shall be inserted, namely:- “Provided further that such condition shall apply cumulatively for the period April and May, 2021 and the return in FORM GSTR-3B for the tax period May, 2021 shall be furnished with the cumulative adjustment of input tax credit for the said months in

Notification No. 13/2021-Central Tax dated 01.05.2021

Seeks to make third amendment (2021) to CGST Rules.



9 accordance with the condition above.”; (ii) in sub-rule (2) of rule 59, the following proviso shall be inserted, namely:- “Provided that a registered person may furnish such details, for the month of April, 2021, using IFF from the 1st day of May, 2021 till the 28th day of May, 2021.”.

[F. No. CBEC-20/06/08/2020-GST] (Rajeev Ranjan)

Under Secretary to the Government of India



10

Introduction

An advance ruling helps the applicant in planning his activities, which are liable for

payment of GST, well in advance. It also brings certainty in determining the tax liability,

as the ruling given by the Authority for Advance Ruling is binding on the applicant as

well as Government authorities. Further, it helps in avoiding long drawn and expensive

litigation at a later date. Seeking an advance ruling is inexpensive and the procedure is

simple and expeditious. It thus provides certainty and transparency to a taxpayer with

respect to an issue which may potentially cause a dispute with the tax administration. A

legally constituted body called Authority for Advance Ruling (AAR) can give a binding

ruling to an applicant who is a registered person or is desirous of obtaining registration.

The advance ruling given by the Authority can be appealed before an Appellate authority

for Advance Ruling (AAAR). There are time lines prescribed for passing an order by

AAR and by AAAR.

Objectives of Advance Ruling

The broad objectives for setting up a mechanism of Advance Ruling include:

i. provide certainty in tax liability in advance, in relation to an activity proposed

to be undertaken by the applicant;

ii. attract Foreign Direct Investment (FDI);

iii. reduce litigation;

iv. pronounce ruling expeditiously in transparent and inexpensive manner;

What is an Advance Ruling?

“Advance ruling” means a decision provided by the Authority or the Appellate

Authority to an applicant on matters or on questions specified in sub-section (2) of

section 97 or sub-section (1) of section 100 of the CGST Act, 2017, in relation to the

supply of goods or services or both being undertaken or proposed to be undertaken by

the applicant.

(3) Advance Ruling Mechanism in GST



11 The definition of Advance ruling given under the Act is a broad one and an

improvement over the existing systems of advance rulings under Customs and Central

Excise Laws. Under the present dispensation, advance rulings can be given only for a

proposed transaction, whereas under GST, Advance ruling can be obtained for a

proposed transaction as well as a transaction already undertaken by the appellant.

What are the matters/questions specified in Section 97(2) & Section 100(1) of the

CGST Act, 2017

a) classification of any goods or services or both;

b) applicability of a notification issued under the provisions of CGST Act;

c) determination of time and value of supply of goods or services or both;

d) admissibility of input tax credit of tax paid or deemed to have been paid;

e) determination of the liability to pay tax on any goods or services or both;

f) whether applicant is required to be registered;

g) whether any particular thing done by the applicant with respect to any goods or

services or both amounts to or results in a supply of goods or services or both,

within the meaning of that term.

Section 100(1) of the CGST Act, 2017 provides that concerned officer, the jurisdictional

officer or an applicant aggrieved by any advance ruling pronounced by the Authority

for Advance Ruling, may appeal to the Appellate Authority.

Thus it can be seen that a decision of the Appellate authority is also treated as an advance

ruling

‘Authority for advance ruling’ (AAR) and ‘Appellate authority for advance ruling’

(AAAR)

The Authority for Advance Ruling (AAR) and the Appellate Authority for Advance

Ruling (AAAR) constituted under

the provisions of a State Goods and Services Tax Act or Union Territory Goods and

Services Tax Act shall be deemed to be the Authority for advance ruling (AAR) and

Appellate Authority for Advance Ruling (AAAR) in respect of that State or Union

territory under the CGST Act, 2017 also.



12 Thus it can be seen that both the Authority for Advance Ruling (AAR) & the Appellate

Authority for Advance Ruling (AAAR) is constituted under the respective State / Union

Territory Act and not the Central Act. This would mean that the ruling given by the

AAR & AAAR will be applicable only within the jurisdiction of the concerned state or

union territory. It is also for this reason that questions on determination of place

of supply cannot be raised with the AAR or AAAR

To whom the Advance Ruling is applicable

An advance ruling pronounced by AAR or AAAR shall be binding only on the applicant

who has sought the advance ruling and on the concerned officer or the jurisdictional

officer in respect of the applicant. This clearly means that an advance ruling is not

applicable to similarly placed other taxable persons in the State. It is only limited to the

person who has applied for an advance ruling.

Time period for applicability of Advance Ruling

The law does not provide for a fixed time period for which the ruling shall apply.

Instead, it has been provided that advance ruling shall be binding till the period when

the 333 law, facts or circumstances supporting the original advance ruling have not

changed.

However, an advance ruling shall, by an order passed by the AAR/AAAR, be declared

to be ab initio void if the AAR or AAAR finds that the advance ruling was obtained by

the applicant by fraud or suppression of material facts or misrepresentation of facts. In

such a situation, all the provisions of the CGST/SGST Act shall apply to the applicant

as if such advance ruling had never been made (but excluding the period when advance

ruling was given and up to the period when the order declaring it to be void is issued).

An order declaring advance ruling to be void can be passed only after providing an

opportunity of hearing to the applicant.

Procedure for obtaining Advance Ruling

The applicant desirous of obtaining advance ruling should make application to AAR in

a prescribed form and manner. The format of the form and the detailed procedure for

making application have been prescribed in Rule 104 of the CGST Rules, 2017.An



13 application for obtaining an advance ruling under sub-section (1) of section 97 shall be

made on the common portal in FORM GST ARA-01 and shall be accompanied by a

fee of five thousand rupees, to be deposited in the manner specified in section 49

(Section 49 deals with procedure of payment of tax/interest/penalty and the mechanism

to make payment through Electronic Cash and Credit Ledgers). The application, the

verification contained therein and all the relevant documents accompanying such

application shall be signed in the manner specified in rule 26 of the CGST Rules, 2017.

Rule 26 provides for the manner of authenticating documents through Digital Signature

Certificate (DSC) or e-signature as specified in the Information Technology Act.

Upon receipt of an application, the AAR shall send a copy of application to the officer

in whose jurisdiction the applicant falls and call for all relevant records. The AAR may

then examine the application along with the records and may also hear the applicant.

Thereafter the AAR will pass an order either admitting or rejecting the application.

Application for advance ruling shall not be admitted in cases where the question raised

in the application is already pending or decided in any proceedings in the case of an

applicant under any of the provisions of CGST Act.

If the application is rejected, it should be only after an opportunity of being heard is

provided to the applicant and by way of a speaking order giving the reasons for rejection.

If the application is admitted, the AAR shall pronounce its ruling within ninety days of

receipt of application. Before giving its ruling, it shall examine the application and any

further material furnished by the applicant or by the concerned departmental officer.

Before giving the ruling, AAR must hear the applicant or his authorized representative

as well as the jurisdictional officers of CGST/SGST.

If there is difference of opinion between the two members of AAR, they shall refer the

point or points on which they differ to the AAAR for hearing the issue. If the members

of AAAR are also unable to come to a common conclusion in regard to the point(s)

referred to them by AAR, then it shall be deemed that no advance ruling can be given

in respect of the question on which difference persists at the level of AAAR.

Appeals against order of AAR



14 If the applicant is aggrieved with the finding of the AAR, he can file an appeal with

AAAR. The form and manner of filing appeal with AAAR is given in Rule 106 of the

CGST Rules, 2017. An appeal against the advance ruling shall be made by an applicant

on the common portal in FORM GST ARA-02 and shall be accompanied by a fee of

ten thousand rupees to be deposited in the manner specified in section 49. Similarly, if

the prescribed or jurisdictional officer of CGST/SGST does not agree with the finding

of AAR, he can also file an appeal with AAAR. The word prescribed officer of

CGST/SGST means an officer who has been designated by the CGST/SGST

administration in regard to an application for advance ruling. In normal circumstances,

the concerned officer will be the officer in whose jurisdiction the applicant is located.

An appeal against the advance ruling shall be made by the concerned officer or the

jurisdictional officer referred to in section 100 on the common portal in FORM GST

ARA-03 and no fee shall be payable by the said officer for filing the appeal. The appeal

(by the applicant or jurisdictional officer), the verification contained therein and all the

relevant documents accompanying such appeal shall be signed, -

a) in the case of the concerned officer or jurisdictional officer, by an officer

authorised in writing by such officer; and

b) in the case of an applicant, in the manner specified in rule 26 (DSC/e-signature).

Any appeal must be filed within thirty days from the date on which the advance ruling

is communicated to the concerned officer, the jurisdictional officer and applicant.

The Appellate Authority must pass an order after hearing the parties to the appeal within

a period of ninety days of the filing of an appeal. If members of AAAR differ on any

point referred to in appeal, it shall be deemed that no advance ruling is issued in respect

of the question under appeal.

Manual Filing of applications before AAR & AAAR

As per rules 104 and 106 of the CGST Rules, 2017 the application for obtaining an

advance ruling and filing an appeal against an advance ruling shall be made by the

applicant on the common portal. However, due to the unavailability of the requisite

forms on the common portal, a new rule 107A has been inserted vide notification No.



15 55/2017-Central Tax, dated 15.11.2017, which states that in respect of any process or

procedure prescribed in Chapter XII, any reference to electronic filing of an application,

intimation, reply, declaration, statement or electronic issuance of a notice, order or

certificate on the common portal shall, in respect of that process or procedure, include

the manual filing of the said application, intimation, reply, declaration, statement or

issuance of the said notice, order or certificate in such Forms as appended to the CGST

Rules. Circular no. 25/25/2017-GST dated 21.12.2017 prescribing the detailed

procedure for manual filing of applications for Advance Ruling and appeals before

Appellate Authority for Advance Ruling has been issued.

Therefore, till the advance ruling module is made available on the common portal, the

following conditions and procedure have been prescribed for the manual filing and

processing of the applications.

Form and Manner of Application to the Authority for Advance Ruling

An application for obtaining an advance ruling under sub-section (1) of section 97 of

the CGST Act and the rules made thereunder, shall be made in quadruplicate, in FORM

GST ARA-01. The application shall clearly state the question on which the advance

ruling is sought. The application shall be accompanied by a fee of five thousand rupees

which is to be deposited online by the applicant, in the manner specified under section

49 of the CGST Act. It is reiterated that though the application shall be filed manually

till the advance ruling module is made available on the common portal, the fee is

required to be deposited online in terms of section 49 of the CGST Act.

In order to make the payment of fee for filing an application for Advance Ruling on the

common portal, the applicant has to fill his details using “Generate User ID for Advance

Ruling” under “User Services”. After entering the email id and mobile number, a One

Time Password (OTP) shall be sent to the email id. Upon submission of OTP, Systems

shall generate a temporary ID and send it to the declared email and mobile number of

the applicant.

On the basis of this ID, the applicant can make the payment of the fee of Rs. 5,000/-

each under the CGST and the respective SGST Act. The applicant is then required to

download and take a print of the challan and file the application with the Authority for

Advance Ruling.



16

The application, the verification contained therein and all the relevant documents

accompanying such application shall be signed-

a) in the case of an individual, by the individual himself or where he is absent from

India, by some other person duly authorised by him in this behalf, and where the

individual is mentally incapacitated from attending to his affairs, by his guardian

or by any other person competent to act on his behalf;

b) in the case of a Hindu Undivided Family, by a Karta and where the Karta is

absent from India or is mentally incapacitated from attending to his affairs, by

any other adult member of such family or by the authorised signatory of such

Karta;

c) in the case of a company, by the Chief Executive Officer or the authorized

signatory thereof;

d) in the case of a Government or any Governmental agency or local authority, by

an officer authorised in this behalf;

e) in the case of a firm, by any partner thereof, not being a minor or the authorized

signatory thereof;

f) in the case of any other association, by any member of the association or persons

or the authorised signatory thereof;

g) in the case of a trust, by the trustee or any trustee or the authorised signatory

thereof; or

h) in the case of any other person, by some person competent to act on his behalf,

or by a person authorised in accordance with the provisions of section 48 of the

CGST Act.

Form and Manner of Appeal to the Appellate Authority for Advance Ruling

An appeal against the advance ruling issued under subsection (6) of section 98 of the

CGST Act and the rules made thereunder shall be made by an applicant in quadruplicate,

in FORM GST ARA-02 and shall be accompanied by a fee of ten thousand rupees to

be deposited online, in the manner specified in section 49 of the CGST Act. It may be

noted that though the application shall be filed manually till the advance ruling module

is made available on the common portal, the fee is required to be deposited online in



17 terms of section 49 of the CGST Act. The payment of fee shall be made as per the

procedure detailed earlier.

An appeal made by the concerned officer or the jurisdictional officer referred to in

section 100 of the CGST Act and the rules made thereunder shall be filed in

quadruplicate, in FORM GST ARA-03 and no fee shall be payable by the said officer

for filing the appeal. As per section 100 (2) of the CGST Act, the appeal shall be filed

within a period of thirty days from the date on which the ruling sought to be appealed

against is communicated to the applicant or the concerned officer or the jurisdictional

officer, as the case maybe.

The appeal, the verification contained therein and all the relevant documents

accompanying such appeal shall be signed

a) in the case of the concerned officer or jurisdictional officer, by an officer

authorised in writing by such officer; and

b) in the case of an applicant, in the manner specified above

The application for advance ruling or the appeal before the Appellate Authority shall be

filed in the jurisdictional office of the respective State Authority for Advance Ruling or

the State Appellate Authority for Advance Ruling respectively.

If the space provided for answering any item in the Forms is found to be insufficient,

separate sheets may be used. Further, the application, the verification appended thereto,

the Annexures to the application and the statements and documents accompanying the

Annexures must be self-attested.

Rectification of Mistakes

The law gives power to AAR and AAAR to amend their order to rectify any mistake

apparent from the record within a period of six months from the date of the order. Such

mistake may be noticed by the authority on its own accord or may be brought to its

notice by the applicant or the prescribed or the jurisdictional CGST/SGST officer. If a

rectification has the effect of enhancing the tax liability or reducing the quantum of

input tax credit, the applicant must be heard before the order is passed.



18

Powers and procedure of AAR and AAAR

Both the AAR and AAAR are vested with the powers of a civil court under Code of

Civil Procedure, 1908, for discovery and inspection, enforcing the attendance of a

person and examining him on oath, and compelling production of books of account

and other records. Both the authorities are deemed to be a civil court for the purposes

of section 195 of the Code of Criminal Procedure, 1973. Any proceeding before the

authority shall be deemed to be judicial proceeding under section 193 and 228 and for

the purpose of section 196, of the Indian Penal Code, 1860. The AAR and AAAR also

have the power to regulate their own procedure.



19

GST on pick-up charges paid to the owner / driver

THE AUTHORITY ON ADVANCE RULINGS

IN KARNATAKA

Case Name: In re Kou-Chan Technologies Private Limited (GST AAR

Karnataka)

Appeal Number: Advance Ruling No. KAR ADRG 22/2021

Date of Judgement/Order: 07-04-2021

In re Kou-Chan Technologies Private Limited (GST AAR Karnataka)

RULING

Question 1: Do the various supplies (of the applicant, the vehicle owner, the driver

and the associate partner together) qualify as Composite supply?

Answer:- No, it’s not a composite supply.

Question 2:- Do the pick-up charges paid to the owner / driver fall under GST

rate of 5%?

Answer: - Yes, the pick-up service is incidental to the main service of transportation

of passengers by radio taxi and hence the pick-up charges form part of the service

of transportation of passengers by a radio taxi and hence the applicant is liable to

pay GST @ 5%, on such pick-up charges.

Question 3: - The Associate Partner renders services to the passengers and to the

drivers/ vehicle owners directly, and in that case does any supply of service exist

(4) Advance Ruling by AUTHORITY ON ADVANCE

RULINGS



20 between the applicant /aggregator and the Associate partner, and if yes, what is the

rate at which GST has to be collected and remitted?

Answer: - 18 % by associate partners in case the associate partner is registered under

GST. Where the associate partners are not registered under GST, no GST is leviable

on the amount remitted to the associate partner.

Question 4: - Does the amount received from drivers/ owners towards bidding get

covered in the 5 % GST or should it be separately charged at 18%?

Answer: - It should be paid at 18%.

Question 5: - Does the goodwill bonus being paid by passenger to the driver and

on which the applicant collects the service charges, attract GST and if so at what

rate?

Answer: - Yes at 18 %.

Question 6:- Do the charges for cancelling the trip for any reason attract GST

liability?

Answer: - Yes at 18 %.

Question 7: - Do the charges for insurance come under composite supply?

Answer: - No

Question 8: - If the principal supplier / applicant collects GST, say at 5% along

with fare from passengers (as mentioned in the Table submitted by the applicant),

does it amount compliance of the GST Rules?

Answer:-No. the applicant needs to discharge 18% on its other income as discussed

above.



21

GST on contract relating to electrical works from

sub-contractor for work of Government Company


IN KARNATAKA

Case Name : In re Hadi Power Systems (GST AAR Karnataka)


Date of Judgement/Order: 06/04/2021

RULING

The composite supply undertaken by the applicant under question is not covered under

entry no. 3(iii) or 3(vi) or 3(ix) of the Notification No. 11/2017- Central Tax (Rate)

dated 28.06.2017 as amended and hence applicant is not eligible to charge GST at a rate

of 6% under CGST Act and 6% under the KGST Act. The applicant has to discharge

tax rate CGST @9% and KGST @ 9% each under the provision of the GST Acts.



22

Input Tax Credit eligible on free supply of goods as

a part of CSR activities


UTTAR PRADESH

Case Name : In re Dwarikesh Sugar Industries Limited (GST AAR Uttar Pradesh)

Appeal Number : Order No. 52

Date of Judgement/Order : 22/01/2020

RULING

Question 1:- Whether expenses incurred by the Company in order to comply with

requirements of Corporate Social Responsibility (CSR) under the Companies Act, 2013

(`CSR Expenses’) qualify as being incurred in the course of business and eligible for

input tax credit (`ITC’) in terms of the Section 16 of the Central Goods and Services

Tax Act, 2017 (`CGST Act, 2017′)?

Answer:- Yes.

Question 2:- Whether free supply of goods as a part of CSR activities is restricted under

Section 17 (5) (h) of CGST Act, 2017?

Answer:- No

Question 3:- Whether goods and services used for construction of school building

which is not capitalized in the books of accounts is restricted under Section 17 (5) (c) /

17 (5) (d) of CGST Act, 2017 ?

Answer:- ITC is not available to the extent of capitalisation.

17) This ruling is valid subject to the provisions under Section 103(2) until and unless

declared void under Section 104(1) of the CGST Act, 2017.



23

GST on Supply of catering services to educational

institution

WEST BENGAL AUTHORITY FOR ADVANCE RULING

Case Name : In re Manoj Mittal (GST AAR West Bengal)

Appeal Number : Order No. 18/WBAAR/2020-21


RULING

(i) Supply of food and beverages from the sweetmeats counter by the applicant, where

the customers have not been provided with any services in relation to consume the same

in the premises, shall be categorized as supply of goods and the applicant is eligible to

avail input tax credit in respect of such supply of goods subject to conditions as laid

down in Chapter V of the GST Act and rules made there under.

(ii) Supply of food items and beverages by the applicant which offers the facility of

eating in the same premises along with takeaway of the same shall be treated as

restaurant services and shall attract tax @ 5% provided that credit of input tax charged

on goods and services used in supplying the service has not been taken.

(iii) Supply of catering services to the educational institution, based on the agreement,

is found to be covered under entry serial number 66 (b)(ii) of the Exemption

Notification No. 12/2017- Central Tax (Rate) dated 28.06.2017, as amended from time

to time (corresponding West Bengal State Notification No. 1136 F.T. dated 28.06.2017)

and shall, therefore, be exempted from payment of tax.

(iv) Supply of food and beverages to the auditor, guests/ parents on programme days,

as it appears from the agreement shall be treated as ‘outdoor catering’ and shall attract

tax @ 5% vide entry serial number 7(iv) of the Notification No. 11/2017 Central Tax



24 (Rate) dated 28/06/2017, as amended from time to time (corresponding West Bengal

State Notification No. 1135 F.T. dated 28.06.2017) provided that credit of input tax

charged on goods and services used in supplying the service has not been taken.

(v) The applicant shall follow the principle of apportionment of credit as laid down in

sub-section (1) and (2) of section 17 of the GST Act read with rule 42 and 43 of the

CGST/WBGST Rules, 2017 in respect of common input tax credit in the form of

inputs, input services and capital goods.

This Ruling is valid subject to the provisions under Section 103 until and unless declared

void under Section 104(1) of the GST Act.

Supply of software licence – supply of goods or services?


IN KARNATAKA

Case Name : In re SPSS South Asia Pvt. Ltd (GST AAR Karnataka)

Appeal Number : Advance Ruling No. KAR ADRG 15/2021


RULING

The Notification No.45/2017- Central Tax (Rate) dated 14.11.2017 or Notification

No.47/2017-Integrated Tax (Rate) dated 14th November 2017 are applicable to the

transaction / supply of the applicant.



25

GST on supervision charges of

loading/unloading/transportation of agricultural

produc


IN KARNATAKA

Case Name: In re Karnataka State Warehousing Corporation (GST AAR

Karnataka)


Date of Judgement/Order: 24/03/2021

The services of the applicant to supervise the handling & transportation of “agriculture

produce” belonging to the FCI, from railhead to the warehousing station provided by

the H&T contractors, are covered under SAC 9997 being the services nowhere else

classified and are exigible to GST @ 18% in terms of Sl.No.35 of the Notification No.

11/2017-Central Tax (Rate) dated 28.06.2017, on the value equivalent to 8% of the sum

of actual amounts paid to H&T contractors, in terms of Section 15 of the CGST Act,

2017.



26

HC denies Bail in alleged Rs. 18 Crore fake Input Tax Credit Case CRM-M No.8190 of 2021 (O&M) Decided on: 24.03.2021

IN THE HIGH COURT OF PUNJAB AND

HARYANA AT CHANDIGARH Mohit Bathla

.... Petitioner

Versus

Central Goods and Service Tax Division Panipat

.... Respondent

CORAM: HON'BLE MR JUSTICE ARVIND SINGH SANGWAN

Present: Mr. Puneet Bali, Sr. Advocate with Mr. Sachin Jain,

Advocate for the petitioner.

Mr. Saurabh Goel, Advocate for the respondent.

ARVIND SINGH SANGWAN, J.

Prayer in this petition filed under Section 439 of the Code of Criminal Procedure (in

short 'Cr.P.C.') is for grant of regular bail to the petitioner for offence under Section

132(1)(b) and 132(1)(c) punishable under Clause L(i) of Section 132(1) of the Central

Goods and Services Tax, 2017 (in short 'the CGST, 2017) in File

No.GEXCOM/AE/FU/87/2020-AE-CGST-DIV-PNP-

COMMRTEPANCHKULA.

Learned senior counsel for the petitioner has argued that the accounts of the firms of

the petitioner was verified by GST Officers from time to time and as per the statement

dated 12.02.2020, on verification of the copies of various Goods & Services Tax Returns

(G.S.T.R.), Re-conciliation of Input Tax Credit Claim, nothing was found suspicious.

The authorities again, searched the premises of the petitioner under Section 67 of the

CGST, 2017 and the Assistant Commissioner, G.S.T. Division Gandhi Mandi, Panipat

(5). Case Name law



27 vide letter dated 14.10.2020 informed the Assistant Commissioner, Ghaziabad that

eWay bill and transport documents were found to be in order. Later on, again surprise

visit was made at the premises of the petitioner which according to the learned senior

counsel for the petitioner was in violation of Section 67(10) of the CGST, 2017 as even

the procedure under Section 100(4) Cr.P.C., was not followed. The Panches

accompanying the searched party were not the local residents. Thereafter, the petitioner

was served with the summons to appear before the Superintendent (Preventive), CGST,

Panipat. In pursuance to the summons, the petitioner appeared before the authorities

and was threatened that he will be involved subsequently in a case. Thereafter, the

statement of the petitioner was recorded and he was detained under Section 69 of the

Act on 25.10.2020 for the alleged commission of offence punishable under Sections

132(1)(d) and 132(1)(c) of the CGST, 2017. An application for seeking remand of the

petitioner was filed before the Chief Judicial Magistrate, Panipat. The petitioner,

thereafter, preferred an application for bail which was declined by the Additional Chief

Judicial Magistrate, Panipat on 31.12.2020.

Learned senior counsel for the petitioner has prayed for bail on the ground that in order

to bring the offence under Clause (i) of Section 132(i) of the CGST, 2017, different

amount of ITC were clubbed so as to bring the figure above Rs.500 lacs to attract

maximum punishment and therefore, no proper procedure has been followed. Learned

senior counsel for the petitioner has next argued that there is no fake or bogus invoices

or no false claim have been set up by the petitioner as he has filed all the documents

relating to the transactions from time to time with the respondent – authorities as per

the procedure laid down in the Rules of the CGST, 2017.

Learned senior counsel for the petitioner has further argued that the entire case against

the petitioner is not proved as no complaint was filed against the petitioner and he has

been detained while exercising the powers under Section 132 of the CGST, 2017.

Learned senior counsel for the petitioner has relied upon the order dated 18.01.2021

passed in CWP No.8268 of 2020 where the constitutional authority of Sections 69 and

132 of the CGST, 2017, is under challenge and the accused facing the prosecution under

Sections 132(1)(b) and 132(1)(c) of the CGST, 2017, has been granted the concession

of bail.

Learned senior counsel for the petitioner has also argued that it has been held by the

Hon'ble Supreme Court that while considering a bail application, his innocence till the

guilt is proved, should be considered beyond a reasonable doubt and also it should be



28 considered that a person, if denied bail, will be subject to psychological and physical

deprivation of his personal life.

Learned senior counsel has further relied upon the order dated 28.10.2020 passed in

CRM-M No.27425 of 2020 wherein in similar circumstances, the accused has been

granted the concession of regular bail and similar view was taken by this Court, while

granting the concession of anticipatory bail in terms of the order passed in CWP

No.13995 of 2020 wherein the vires of the Act are under challenge.

Learned counsel appearing for the respondent has, however, opposed the prayer for

bail of the petitioner on the ground that a complaint has already been filed against the

petitioner after recording the statement of one witness namely Chander Parkash and he

has relied upon various documents to submit that on verification, all the documents

submitted by the petitioner claiming exemption from the CGST, it was found that the

firm of the petitioner has received invoices without actual supply of goods from

fake/bogus firms namely M/s.Neelkanth International, M/s. Global Enterprises and

M/s. Mahadev Trading Company. It is further stated that M/s. S.B. Chemicals is

registered with the GST Department in the name of Smt. Sunita Bathla, mother of Shri

Mohit Bathla vide GSTN 06AHKPB7087N1ZZ, M/s. Hans Petroleum Products is

registered with the GST Department in the name of Shri Mohit Bathla vide GSTIN

06BMAPB7667P1ZM, M/s. Hind International is registered with the GST Department

in the name ofr Shri Ashok Bathla, father of Shri Mohit Bathla vide GSTIN

06AGMPB7345M2Z2 and M/s. Jey Oil and Bitumen Products India Private Limited is

registered with the GST Department vide GSTIN 06AAECJ7827R1ZT.

Counsel for the respondent has further submitted that the petitioner has made a

statement on 25.12.2020 acknowledging the aforesaid facts, however, it is specifically

stated that in fact, the petitioner is operating the said firms. Similar was the statement

made by Amit Kumar, Rajeev Kumar, Supervisor and upon investigation, it is found

that the petitioner is having as many as 18 firms/companies which has filed fake ITC

worth Rs.18,85,47,218/-. The father and mother of the petitioner have been granted

the concession of anticipatory bail on the basis of the statement made by the petitioner

that it is the petitioner, who is wholly responsible for the day-to-day business of all the

firms.

Counsel for the respondent has relied upon an order dated 28.01.2021 passed in CRM-

M No.1511 of 2021 wherein the prayer for bail was declined after going through the

various judgments, relied upon by the petitioner.



29

A perusal of the said order show that while declining the bail application, the Court has

recorded a finding that the accused (petitioner therein) was prima facie found violating

the penal provisions and therefore, the bail was not granted.

Counsel for the respondent has also placed on record voluminous documents including

some judgments to support his arguments, however, for the purpose of deciding the

application for bail, the same are not referred to.

In reply, learned senior counsel for the petitioner has reiterated the arguments that on

an earlier occasion, when the record of the petitioner was verified on 14.10.2020, a

specific note was made by the Assistant Commissioner, CGST, that e-Way bill and

transport documents were found to be genuine and therefore, it will be a matter of trial

as to how the same documents are now termed as fake documents as it will require

evidence to prove the same.

Learned senior counsel for the petitioner has lastly argued that the petitioner is the first

offender; he is not involved in any other case of such or similar nature and he is in

custody since 26.12.2020 and as on today, the petitioner has undergone about 03

months of judicial custody and as the complaint has been filed, it will take long time in

conclusion of the trial.

After hearing the counsel for the parties and going through the voluminous documents

and judgments relied upon by both the parties, it is found that main allegations against

the petitioner are regarding availment of fake Input Tax Credit (ITC) Limit of 04 firms

and on clubbing of the same, the amount as calculated by the respondent is

approximately Rs.18 crores, however, considering the fact that the custody of the

petitioner is less than 03 months, I do not deem it appropriate to grant the concession

of regular bail to the petitioner, at this stage.

Accordingly, the petition is dismissed

(ARVIND SINGH SANGWAN)

JUDGE

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