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regard to the specific situation of a particular individual or entity. We do not accept any responsibility for

loss incurred by any person for acting or refraining to act as a result of any matter in this publication.

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Case Laws

Rules Pertaining to Single Disbursement of GST Refund Claims Brought Into Force

With Effect From 24.09.2019

R o Single

Disbursement of GST Refund Claims Brought Into

On September 24th 2019 rules relating to issue of payment order in place of payment advice for

refunds brought under the Central Goods and Services (Fourth Amendment) Rules , 2019 shall

come into force with effect from September 24th 2019

No E-way shall be required for intra-state movement of Goods within Jammu and Kashmir

The Commissioner of State Tax, Jammu and

Kashmir vide Notification No. 62 dated

September 25, 2019 has notified that, no E-

way bill shall be required for Intra-state

movement of goods within the state of

Jammu and Kashmir. However, the person-

in-charge of conveyance must carry

documents such as tax invoice, delivery

challan, bill of supply or bill of entry, as the

case may be. This notification shall remain

effective till October 20, 2019.

Forms Available on GST Portal for Taxpayers and Tax Officials

� The GSTN has issued various forms for GST related compliances to be made by taxpayers and for taking actions on them by

tax officials. Various forms issued for registration, filing returns or refunds, etc. have been made available on the GST Portal.

Clarifications issued by CBIC on Sabka Vishwas (Legacy Dispute Resolution) Scheme,

2019

GST Relief for FIFA under-17 Women’s World Cup 2020

� During 37th Goods and Services Council meeting hold

on Friday 20th

September 2019 it is proposed that

the upcoming FIFA under-17 Women's World Cup be

exempted from service tax, Union Finance Minister

Nirmala Sitharaman said on Friday.

� "To exempt services related to FIFA Under-17

Women's World Cup 2020, similar to existing

exemption given to FIFA under-17 World Cup 2017,"

she said, quoting the recommendation made by the

Council, following a meeting held near here.

� The Women's under-17 FIFA World Cup is scheduled

to be held in Odisha in November next year.

� The Council also recommended allowing "registered

authors" an option to pay Goods and Services Tax on

royalty charged from publishers under forward

charge and observe regular GST compliance.

2019

GST Council recommends relaxation in filing of annual returns for MSMEs

� The new GST return system now will be introduced from

April 2020.

� In the 37th GST Council meeting held recently, a

relaxation in the filing of annual returns for Micro Small

and Medium Enterprises (MSMEs) for Financial Year 2017-

18 and Financial Year 2018-19 is recommended.

� Likewise, it has decided to extend the last date for filing of

appeal against orders of Appellate Authority before the

GST Appellate Tribunal as the Appellate Tribunal is yet not

functional, an official release said on Wednesday.

� Its Motor vehicles and biscuits that have taken

everyone’s attention when the Goods and Services

Tax (GST) Council decided not to lower the rates last

week, but we have 165 other categories, including

ghee, butter, cheese, and dry fruits, that too remain

untouched.

� The Fitment Committee (FC) of the GST Council had

reviewed rates, including compensation cess, and

procedural issues in respect of over 200 categories of

goods. Finally, it recommended changes or

clarification for 32 categories of goods, and deferred

a decision in respect of 10, but left the rates on 167

categories of goods untouched.

� Based on representations, the FC analyses and

decides on the merits of a change in tax rates. Its

recommendations are placed before the GST Council,

which accepts or rejects them.

� Ghee, cheese and butter attract GST at 12 per cent.

There had been representations seeking that it be

lowered to 5 per cent. However, the FC noted that in

the pre-GST period, the tax had been nearly 12 per

cent. As of now, these products are sold largely by

the organised sector, by companies such as Amul and

Mother Dairy. Small manufacturers can avail

themselves of threshold exemption, the FC reasoned,

and recommended no change.

� Another proposal was for lowering GST on all

convenience instant food mixes – idli mix, vada mix,

dosa mix, gulab jamoon mix, thandai mix, payasam

mix and upma mix – from 18 per cent to 5 per cent.

The FC noted that processed food items attract 12

per cent tax, but a few items, including instant food

mixes, attract 18 per cent. “These are consumed by

better-off sections of society, who can afford the

rate,” the FC said.

Request to lower GST on 165 more items stands untouched the by panel

Services provided to govt. for improvement of water

management & road development are exempt supplies

under GST

� In this case, the Applicant Sumitabha Ray has entered into

contracts with the Govt. of Tamilnadu and the Govt. of

Mizoram for providing services as a Financial Management

Specialist and lnstitutional Development Specialist,

respectively. He seeks a ruling on whether exemption in

terms of Sl No. 3 of Notification No 9/2O17-lntegrated Tax

(Rate) dated 28.06.2017, as amended from time to

time(hereinafter referred to as "the Exemption

Notification"), is available on such services.

� The supplier is located in West Bengal, and the place of

supply is in another State. The supplies on which the

advance ruling is sought are, therefore, inter-state

supplies. An advance ruling is admissible on this

question under section 97(2)(b) of the GST Act read

with section 2O(xviii) of the IGST Act, 2017.

� The Applicant submits that the Government of

Tamilnadu, Water Resource Department, is

implementing a project namely, 'Climate Adaptation in

Vennar Sub-basin in Cauvery Delta' with fund from the

Asia Development Bank (ADB). lt has engaged him as a

Financial Management Specialist to look after the

financial management of the project fund' The project

aims at improving the flood risk management &

upgrading the irrigation infrastructure in the delta area.

The civil work involves re-sectioning and strengthening

the embankments of the six main channels & improving

their resilience & flood conveyance capacity. lt also

includes upgrading minor irrigation & drainage

structures

� The Applicant submits that the Government of

Mizoram, Public Works Department, implementing

under the Regional Transport Connectivity Project

(hereinafter RTCp) road sector modernisation and

performance enhancement through institutional

strengthening. Lt is part of the Road Sector

Modernization Plan (hereinafter RSMP), which carries

forward & deepens various institutional development

initiatives in the road sector. The Applicant, as

lnstitutional Development Specialist, handles

implementation of the RSMp.

� The Applicant argues that he is supplying services to the State

Govt. that involve no supply of goods. The services are in

relation to such functions as irrigation, water management and

watershed development in Tamilnadu, & development of

roads & bridges in Mizoram. These are functions listed under

the Eleventh and Twelfth Schedules of the Constitution. The

services he supplies are, therefore, eligible for exemption

under SI No. 3 of the Exemption Notification.

� The authority West Bengal Authority For Advance Ruling has

observed that the Circular No.51/2512018-GST dated

31072018 the Central Govt. clarifies that the service tax

exemption under sl No. 25(a) of Notification No. 25t2012

dated 2006l2012 (hereinafter the ST Notification) has been

substantially, although not in the same form, continued under

GST vide Sl No. 3 and 3A of the Exemption Notification. Sl No.

25(a) of the ST notification under the Service Tax exempts

"services provided to the Govt., a local authority or a Govt.

local authority by way of water supply, public health,

sanitation, conservancy, solid waste management or slum

improvement and up-gradation." The Circular further explains

in relation to the specific issue of ambulance service to the

Govt. by a private service provider (psp) that such service is a

function of 'public health' entrusted to Municipalities under

Art 243W of the Constitution, and, therefore, eligible for

exemption under Sl No. 3 of the Exemption Notification.

� Thus its ruled that the Applicant is providing pure service to

the SG in relation to the projects describing in para nos.3.10

and 3.12 above. The projects involve functions entrusted to a

Panchayat or a Municipality under Art 243G or 243W of the

Constitution. The Applicant's service to the SG is, therefore,

eligible for exemption under Sl No. g of Notification No gt2017-

lntegr"t"oTax (Rate) dated 28.06.2017, as amended from time

to time.

� Further it was added that no claim had so far been

received from the other two religious shrines - Durgiana

Mandir, Amritsar, and Sri Valmik Sthal, Ram Tirath,

Amritsar - for which the state government had in May this

year allocated Rs 4 crore to the deputy commissioner.

� Of the total allocated amount against the GST bills, Rs 3.5

crore was set aside for the Darbar Sahib (Golden Temple),

Rs 35,000 for the Durgiana Mandir and the remaining for

the Valmiki Sthal.

� Chief Minister Amarinder Singh had already directed the

finance and revenue departments to clear any further

pending claims for the three shrines as soon as they are

raised against the GST incurred with effect from August 1,

2017, the release said.

� He has also instructed the immediate disbursal of all

future claims of the three shrines, said Sidhu.

� The SAD-BJP on Monday had accused Punjab Chief

Minister Amarinder Singh of not refunding to the SGPC

the GST charged on items bought for langars, with Akali

leader Bikram Singh Majithia saying he was a "habitual

offender".

� A war of words had erupted between Union minister

Harsimrat Kaur Badal and the Punjab CM over the release

of the state's share of the GST.

� Harsimrat had accused the state government of

"reneging" on its commitment after which Amarinder

Singh had dubbed the Union minister a "compulsive liar".

� GST concession 'langar' was notified by the Central

government only on August 1, 2018.

� The Chief Minister of Punjab Amarinder Singh said that

since the concerned notification, his government had

received four bills from Shiromani Gurdwara Prabhandak

Committee (SGPC) amounting to Rs 1.96 crore.

� It came over the war of words over the GST refund for

langar, the Punjab government on September 24 said it

has paid Rs 1.96 crore to the Shiromani Gurdwara

Prabhandak Committee (SGPC).

� "An amount of Rs 1,96,57,190 has been transferred to

the bank account of the SGPC to settle the "entire

pending" claim of the Darbar Sahib, Amritsar, after the

completion of all necessary procedural processes," said

an official release.

� With this, not a single penny of the claim raised by the

SGPC so far against this budgetary head was pending,

said Special Chief Secretary (Revenue) KBS Sidhu.

� In this case the applicant set up a manufacturing facility for UHT milk, milkshake, curd and lassi which are taxable as well

as exempted under GST Act.

� The applicant has procured capital goods and input services that are common to production of both taxable and exempted

goods, wants to know to what extent and in what proportion input tax credit is admissible on such capital goods and input

services, based on proviso to rule 43(1)(d) of GST Rules and further prescriptions under rule 43(1)(e), (f) and (g) of GST

Rules, applicant should compute admissible amount of input tax credit on capital goods used for both taxable and exempt

supplies in tax periods over useful life of such capital goods, calculated from date of invoice

GST on langar: Punjab govt releases Rs 1.96 crore to SGPC

ITC on capital goods used for both taxable & exempt supplies is admissible on proportionate basis

� In this case the applicant , Golden Vacations Tours and Travels

arranges for client accommodation in hotels and is thus,

supplying a service classifiable under SAC 998552, it is taxable at

18 per cent (CGST + SGST) under Sl. No. 23(iii) of Notification No.

11/2017 - CT (Rate) dated 28-6-2017.

� |n the Applicant's opinion, it is not to be classified as tour

operating service. According to Explanation to Sl No. 23(i) of

Notification No. 1112017 - CT (Rate) dated 2810612017

(StateNotification No. 1135 - FT dated 2810612017), as

amended from time to time (herein after collectively called the

Rate Notification), the "tour operator" means any person

engaged in the business of planning, scheduling, organizing,

arranging tours (which may include arrangements for

accommodation, sightseeing or other similar services) by any

mode of transport, and includes any person engaged in the

business of operating tours. Furthermore, SL No. 23(i) applies

provided inter alia the bill issued for supply of the service

indicates it is inclusive of charges of accommodation and

transportation required for such a tour. As the Applicant seeks

the ruling for cases where it provides the client accommodation

only, Sl No.23(i) of the Rate Notification should not be

applicabte.2.3

� The Applicant argues that accommodation service is classified

under SAC 996311 and covered under several clauses of Sl No. 7

of the Rate Notification. Although SAC 996311 is limited to the

accommodation service provided by the hotels, guest house

etc., the narration under Sl No. 7 of the Rate Notification keeps

scope for the suppliers like the Applicant who arrange such

accommodation in hotels.2.4

� The Applicant further argues that support services covered

under Sl No. 23(iii) of the Rate Notification include services

classified under SAC 998552. Services covered under SAC998552

includes arranging reservations for accommodation services for

domestic accommodation, accommodation abroad etc. The

Applicant's service may be classified under the above SAC

also.2.5 Finally, the Applicant states that if not elsewhere

classified, SAC 9997 under Sl No. 35 of the Rate Notification can

be used for classification of such services

� The concerned officer from the Revenue is of the view that the

Applicant's service as above is classifiable under SAC 9985 as

tour operating service procured from another tour operator.

The bills issued indicate that the Applicant charges inclusive of

accommodation and transportation required for such tours.

� The authority, West Bengal Authority For Advance

Ruling, observed that the Applicant is admittedly a tour

operator. But the question on which the advance ruling

is sought is whether it should continue to be classified as

a tour operator when it merely arranges the client's

accommodation in hotels. lt is not unusual for tour

operators to bulk book rooms inhotels and release a few

of them to clients who either do not book for the tour or

prefer to reach by own arrangement and pay only for

the accommodation. Arranging accommodation may

also be a standalone business. Such a service cannot be

classified as tour operating. According to Explanation to

Sl No. 23(i) of the Rate Notification, tour operator

means any person engaged in the planning, scheduling,

organising, and arranging tours by any mode of

transport. Arranging accommodation might be provided

as add-ons, but that is not the essence of the tour

operating service. The Applicant's service under focus in

the Application is not, therefore, to be treated as that of

a tour operator.

� Neither is it the accommodation service as classified

under SAC 996311. Accommodation service under SAC

996311 is limited to the one provided by the hotels,

guest house etc. Sl No.7 of the Rate Notification refers

to the accommodation service as classified under

SAC99631 1, and, therefore, leaves no room for the

suppliers like the Applicant who arrange such

accommodation in hotels

� The support services covered under Sl No. 23(iii) of the

Rate Notification include services classified under SAC

998552. Services covered under SAC 998552 include

arranging reservations for accommodation services for

domestic accommodation, accommodation abroad etc.

The Applicant's supply is specifically covered and,

therefore, classifiable under SAC 998552. lt is, therefore,

taxable under Sl No. 23(iii) of the Rate Notification, and

the Applicant is eligible to claim the input tax credit as

admissible under the law.

� Thus the authority ruled that the Applicant, if arranges

for clients only accommodation in hotels, is supplying a

service classifiable under SAC 998552. lt is taxable under

Sl No. 23(iii) of the Rate Notification, and the Applicant

is eligible to claim the input tax credit as admissible

under the law.

Applicant arranges for client accommodation in hotels and is thus, supplying a service classifiable under SAC

998552, it is taxable at 18 per cent (CGST + SGST) under Sl. No. 23(iii) of Notification No. 11/2017 - CT (Rate) dated

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