Extension of Exemption of payment of

Latest Updates tax under Reverse Charge

Supply of Goods and Services by
on GST unregistered person to registered
person

Such registered
person is
required to pay
tax under RCM
Un-Registered Seller Registered Buyer

Such Payment of Tax under RCM u/s 9(4) CGST Act,

2017 and u/s 5(4) of IGST Act, 2017 is now exempted
Upto 30th September,2018 .
15.07.2018 CA Gadia Manish R 3

Suspension of TDS/TCS Provisions

Press Released
The provisions of sections 51 and 52 of the
Central Goods and Services Tax Act, 2017
relating to tax deduction at source (TDS) and
collection of tax at source (TCS) respectively,
shall remain suspended till 30.09.2018.

15.07.2018 CA Gadia Manish R 2 15.07.2018 CA Gadia Manish R 4

1
 E-Way Bill requirements relaxed in Priority Sector Lending Certificate
the State of Maharashtra under RCM
No e-way bill required for intra-state movement of Target of Lending
150Crs. To
goods in the following scenarios Priority Sectors
Goods Conditions
Hank, Yarn, Fabric and If these Goods are transported
Garments for a distance of upto 50
Km within the State of
Will Buy a PSLC worth
Of any Value Maharashtra for the purpose
Rs.50Crs to Meet the
of job work Lent 100 Target and Avoid Default Lent 200
Any goods, if the If the movement of goods Crs Crs
consignment value does not commences and terminates
exceed within the state of GST on Priority Sector Lending Certificate
I Lac Maharashtra
will now be payable by Yes Bank (i.e. the
recipient of such certificate)
(Previously Rs. 50,000/-)
15.07.2018 CA Gadia Manish R 5 15.07.2018 CA Gadia Manish R 7

E-way Bill Registration for GST rate for REC and PSLC
Transporters SEIS Classified
Rajasthan Nil rate of GST under Heading
4907
West
Maharashtra
Bengal PSLC
POS?
12% GST EWB?
Transporter ‘X’ Registered in multiple state having
Multiple GSTIN
As per Circular No. 34/8/2018 - GST dated 01.03.2018 (S.No.3)
Transporters can now have Single Registration
PSLC are taxed @ 18% under the residual entry S. No. 453
for Multiple States for E-way Bill of Schedule III of notification No. 01/2017-Central Tax (Rate).
One Unique Enrollment Number will
be issued for the purpose of E-way Bill PSLC is taxable @ 12% or 18%?
15.07.2018 CA Gadia Manish R 6 15.07.2018 CA Gadia Manish R 8

2
 No contract for supply of Moulds/Dies to be supplied by
• GST rate of 18 % under the residual entry at S.No. 453 of Component manufacturer
Schedule III of notification No. 01/2017-Central Tax
(Rate) applies only to those goods which are not Free Free
covered under any other entries of Schedule I, II, IV, V,
or VI of the notification. Original equipment Component
Moulds
manufacturer (OEM) Manufacturer
Supply Reverse
• in modification of S.No. 3 of Circular No. 34/8/2018- ITC
GST dated 01.03.2018, it is hereby clarified that
Renewable Energy Certificates (RECs) and Priority Sector Not related No need to add the
Lending Certificates (PSLCs) and other similar value of such
Not a supply since moulds/dies as per
documents are classifiable under heading 4907 and not related or distinct section 15(2)(b) as the
No need to reverse ITC
attract 12% GST. The duty credit scrips, however, attract persons as it is provided in the cost was not to be
Nil GST course of furtherance incurred by the
of business component
15.07.2018 CA Gadia Manish R 9 15.07.2018 CA Gadia Manish R
manufacturer 11

Dies and Mould provided by OEM Servicing of Cars

Contract for Supply of Moulds and Dies by Component Manufacturer

Free Free

Original equipment Component

Moulds Whether supply of goods/services?
manufacturer (OEM) Manufacturer
Circular No. 47/21/2018-GST If the value of supply of goods
What is the principal supply – Supply of Goods / Services?
and services are separately
The moulds are not provided For section 15(2)(b) of CGST Circular No.
As per Notn No. 26/18 – CT shown in the invoice, GST shall
in theshall
course of furtherance
be deemed to have of Act 2017, the amortized cost 47/21/2018- Single price charged in the Invoice
business,
been hence
paid for ITC is required
the purposes of such moulds/dies shall be GST be levied at the rates applicable
to beofreversed
the secondavailed
provisoon such
to sub- added to the value of the to goods and services separately
section (2) of section 16 Supply of Goods Supply of Service
moulds components.
15.07.2018 CA Gadia Manish R 10 15.07.2018 CA Gadia Manish R 12

3
Issues w.r.t Short term accommodation, RULING
conferencing services etc. to SEZ 1. On reading section 16(1)(b) with rule 46 of CGST Rules 2017, it is
clearly evident that the supplies of goods or services or both
towards the authorised operations only shall be treated as
Supplies to SEZ Developer / SEZ Unit.

Whether Intra 2. For Hotel accommodation and restaurant services POS is location
state or Inter of Hotel and place where there is Performance of services
state? respectively.

Hotel - Mumbai Company in SEZ 3. Therefore the services rendered by the applicant are neither the
Location of Supplier part of authorised operations nor consumed inside the SEZ and
Inter state as per
hence cannot be said to have been ‘imported or procured’ into
section 7 (5)(b)
POS u/s 12 SEZ Unit/Developer.

Intra state 4. Hence in the instant case, the supply is intra state supply.
15.07.2018 CA Gadia Manish R 13 15.07.2018 CA Gadia Manish R 15

Advance ruling no. AAR KAR ADRG 2/2018 However the following issues still persists after AAR
Facts of the case
As per section 7(5)
(b) Supply of goods or services or both to or by a Special Economic Zone
Supply to employees
developer or a Special Economic Zone unit; or by a Special Economic Zone
developer or a Special Economic Zone unit; or

(‘c) in the taxable territory, not being an intra-State supply and not covered
elsewhere in this section
M/s Gogte Infrasturcture Development Corporation Ltd, is engaged in hotel
accommodation and restaurant services. They are providing services to the Section 7 and 8 of
employees & guests of some of the units in SEZ, Belgavi, in addition to the regular Inter state supply IGST does not
customers. They are charging SGST & CGST at the applicable rates. The SEZ units
contended that the services are being supplied / rendered to SEZ units only and Further as per section 8(1)(i), Supply of services consider POS and
hence rate of GST is NIL as per provisions of section 16(1) of IGST Act’2017. to or by a SEZ or a SEZ developer LOS. However there
Therefore the applicant filed an application seeking advance ruling on : “Whether Shall not be is no reference of
the Hotel Accommodation & Restaurant services provided by them, within the
premises of the Hotel, to the employees & guests of SEZ units, be treated as these sections in
supply of goods & services to SEZ units in Karnataka or not ?” Intra state supply AAR
15.07.2018 CA Gadia Manish R 14 15.07.2018 CA Gadia Manish R 16

4
 Circular No. 48/22/2018-GST Inverted rate refund
It is an established principle of interpretation of statutes that in As per Rule 89 of CGST Rules 2017
case of an apparent conflict between two provisions, the Notification No.
specific provision shall prevail over the general provision. 26/2018 – Central Tax

Turnover of inverted rated supply tax payable on

Section 7(5)(b) of the IGST Act is a specific provision relating to
of Goods and Services such inverted
supplies of goods or services or both made to a SEZ developer Net
ITC rated supply of
or a SEZ unit, which states that such supplies shall be treated Adjusted Total Turnover
Goods
as inter-State supplies.
and Services
Excludes: The value of exempt supplies Input tax credit availed on inputs during
clarified that services of short term accommodation, other than zero-rated supplies and the relevant period other than the input
What about refund
The turnover of supplies in respect of
ofavailed
tax credit ITC for which refund is
conferencing, banqueting etc., provided to a SEZ developer on sub
which refund is claimed under supply
rules of claimed
services?under sub-rules (4A) or (4B) or
or a SEZ unit shall be treated as an inter-State supply (4A) or (4B) or both both
15.07.2018 CA Gadia Manish R 17 15.07.2018 CA Gadia Manish R 19

Inverted rate refund Example

Suppose there is an outward supply taxable @ 5% but inputs
services are taxed @ 18%.
Input @ 18% Output @ 5%
Supply Particulars Amount
Inverted rate T/O 10,00,000
Total T/O 15,00,000
In the present case, the output Can refund of Inverted
supply is the supply of Job Net ITC availed 2,35,000
rate duty be taken
work services and not of goods Tax paid on Inverted rate 50,000
considering Notification
(fabrics).
The notification specifies No. 5/2017-Central Tax
(Rate) dated 28.06.2017? Refund as per 10,00,000
supply of Fabrics. Hence 2,35,000 50,000 1,06,667
Formula 15,00,000
refund in the present case shall
be applicable Separate Calculation shall be required for CGST, SGST and
15.07.2018 CA Gadia Manish R 18 15.07.2018
IGST
CA Gadia Manish R 20

5
 Interception of Conveyances
Total 25 Consignments,
Person In charge could show
all Relevant Documents for 20
Consignments Information contained herein is of a
general nature and is not intended to

CA Manish R. Gadia
address the circumstances of any
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Detained not all the act on such information
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without
Ph :+919820537986
Consignments. thorough examination of particular
situation.

15.07.2018 CA Gadia Manish R 21 15.07.2018 CA Gadia Manish R 23

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15.07.2018 CA Gadia Manish R 22 15/07/2018 CA Gadia Manish R 24