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GST Update Month of April-May 2021 (Part-I) || Online Publication- 08.05.2021
LTG PUBLICATION PVT LTD
1
Online Edition :08.05.2021
Pages-29
Editor
Advocate Birbal Sharma
M.Com, DLL, LL.B, LLM
CONTRIBUTOR
Advocate Kamlesh Kumar Kumawat
B.Com, LL.B
Sangita Sharma, Aarti Sharma,
B.Com, LL.B
Printing and Publishing Rights with the Publishers
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GST Update Month of April-May 2021 (Part-I) || Online Publication- 08.05.2021
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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
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LTG PUBLICATION PVT LTD
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
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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)
March 2021 & April 2021
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
March 2021 & April 2021
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)
March 2021 & April 2021
30 days from due date of furnishing return
Form GSTR 3B Turnover upto 5Crs(QRMP Scheme)
Jan To Mar-21 Quarter
30 days from due date of furnishing return
(1) Important GST Due Date Calendar
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LTG PUBLICATION PVT LTD
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
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LTG PUBLICATION PVT LTD
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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
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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
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LTG PUBLICATION PVT LTD
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.
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LTG PUBLICATION PVT LTD
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
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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
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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.
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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
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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
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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.
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LTG PUBLICATION PVT LTD
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.
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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
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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.
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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.
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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
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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.
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21
GST on contract relating to electrical works from
sub-contractor for work of Government Company
THE AUTHORITY ON ADVANCE RULINGS
IN KARNATAKA
Case Name : In re Hadi Power Systems (GST AAR Karnataka)
Appeal Number: Advance Ruling No. KAR ADRG 18/2021
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.
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22
Input Tax Credit eligible on free supply of goods as
a part of CSR activities
THE AUTHORITY ON ADVANCE RULINGS
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.
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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
Date of Judgement/Order : 22/03/2021
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
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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?
THE AUTHORITY ON ADVANCE RULINGS
IN KARNATAKA
Case Name : In re SPSS South Asia Pvt. Ltd (GST AAR Karnataka)
Appeal Number : Advance Ruling No. KAR ADRG 15/2021
Date of Judgement/Order : 24/03/2021
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.
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GST on supervision charges of
loading/unloading/transportation of agricultural
produc
THE AUTHORITY ON ADVANCE RULINGS
IN KARNATAKA
Case Name: In re Karnataka State Warehousing Corporation (GST AAR
Karnataka)
Appeal Number: Advance Ruling No. KAR ADRG 14/2021
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.
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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
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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
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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.
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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