TAXWIZ

16th March 2020

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Table Of Content

1 GST Case Laws

2 Notifications & Circulars

3 NEWS

4 Straight from Portal

5 Revenue & Statistics

6 The Legacy

7 From our Knowledge House

It is so long to hear some goodnews on GST and lo and behold. In oneof the finest decisions, the GST Council has decided to giveretrospective effect to the amendment to Section 50, prescribing thatinterest for delayed payment of GST is leviable only on the net taxliability after deducting the ITC available. Hope that better sense willprevail in the field and interest demands and bank attachments wouldnot continue on the flimsy ground that the retro amendment is yet tobe made.

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GST CASE LAWS

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MACRO MEDIA DIGITALIMAGING PVT LTD 2020-TIOL-33-AAR-GST

Transaction of printing ofcontent provided by thecustomer, on Poly Vinyl Chloride(PVC) banners and supply ofsuch printed tradeadvertisement material is supplyof service attracting GST @ 18%till 30.10.2017 and @12% w.e.f31.10.2017.

AUTOMATIVE COMPONENTSTECHNOLOGY INDIA P LTD2020-VIL-49-AAR

Moulds for manufacture ofparts retained with Thailandsupplier and only partssupplied. Moulds sold bysupplier to Applicant, who inturn sells both parts and themould to Indian Buyer. Transferof title in moulds is “supply”and liable to GST.

But what about place of -supply?

M/s COMMERCIAL STEELCOMPANY 2020-VIL-116-TEL

Vehicles cannot be detainedmerely because the driver hasadopted a wrong route especiallywhen the vehicle carries all therequired documents as per theprovisions under the GST Act.

Take Diversion with no fearof detention.

DAILY FRESH FRUITS INDIA (P)LTD

For rate of duty disputes, goodsand vehicle cannot be detained.At best the inspecting squad canwrite to the assessing authority.

No “instant justice” on road.

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HARMILAP MEDIA (P) LTD2020-VIL-55-AAR

Exemption for “pure services”provided to local authoritiescannot be claimed for the saleof space in print media, as it isnot “pure service” and involvesgoods also.

Impure interpretation andobscure logic.

SWAPNA PRINTING WORKS(P) LTD 2020-TIOL-43-AAR-GST

Printing booklets based on thecontents provided by a foreigncustomer and delivery of suchbooklets in India, as per thedirections of the contentprovider is not Export ofService.

Microsoft syndrome yet todie down?

SUTHERLAND MORTGAGESERVICES INC TS-148-HC-2020(KER)

HC holds AAR has jurisdiction togive rulings on determination ofPlace of supply also, as it involves“determination of the liability topay tax”.

Sutherland’s love for AARhas no bounds. Will it berewarded?

Rishi Graphics Pvt. Ltd TS-176-HC-2020(CAL)-NT

Calcutta HC directs the GSTNauthorities to open the portalfor the Petitioners toupload/revise TRAN-01 tillMarch 31, 2020 by stating that aprocedural law should not takeaway vested rights, howeveradds a rider that " this vestedright is subject to scrutiny bythe Department"

Will the GST Council showits magnanimity onceagain and open the TRANwindow once again for thegenuinely, unluckytaxpayers?

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9M/S. VIDIT BUILDERS 2020-TIOL-47-AAR-GST

Joint Development agreementbetween Landowner andContractor, for developing theland into plots and sale thereofunder revenue sharing -Contractor liable to pay GSTunder Works Contract.

LE REVE PVT LTD2020-TIOL-14-NAA-GST

Anti profiteering by restaurantservice provider established.

NY Cinemas LLP2020-TIOL-15-NAA-GST

Anti-profiteering by notreducing the ticket price bycinema hall proved.

As a remedy will you allowme to watch my favouritemovie once again for free?

NOTIFICATIONS & CIRCULARS

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CENTRAL TAX NOTIFICATIONS – 01.03.2020 to 15.03.2020

NO DATE GIST

08 02/03/2020 Substitutes Rule 31A(2) with effect from

01.03.2020 with the following "The value

of supply of lottery shall be deemed to

be 100/128 of the face value of ticket or

of the price as notified in the Official

Gazette by the Organising State,

whichever is higher"

NEWS

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CBIC issues revised FAQs on Composition Levy to provideclarification regarding the meaning of composition levy, specifiedrate, eligibility criteria, payment of tax, etc.

https://cbic-gst.gov.in/pdf/faq-manual/faq-composition-levy-revised.pdf

Link:

Interest should be demanded only on net tax liability.Amendment to be made retrospective. – 39th GST Council Meet

GSTR 9 C for 2018-19 due date tobe extended to 30.06.20.

Proposed GST Rate Changes forMobile Phones, Textiles, Footwearand Fertilizer Industry.

EXTENDED

POSTPONEDTO

01.10.2020

STRAIGHT FROM GST PORTAL

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E-Invoice API testing Access Procedure

Businesses with Annual turnover (FY 2018-19) > INR 500Crore on aggregate basis. GSPs / ASPs already integratedwith GST system. ERP product owning companies (e.g.MARG, Oracle, SAP etc.)

Webcast on problems faced in “GST Registration”

https://youtube.com/channel/UCbzIbBmMvtvH7d6Zo_ZEHDA

Link:

https://www.gstn.org.in/e-invoice-reg/. Link:

To know about the details of GST Forms, made available fortaxpayers and tax officials, on GST Portal

https://tutorial.gst.gov.in/downloads/news/Forms_Available_Update_03132020.pdf

Link:

REVENUE AND STATISTICS

The total number of GSTR 3B Returns filed for the month ofJanuary up to 29th February, 2020 is 83.53 lakhs.

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The gross GST revenue collected in the month of February,2020is ₹ 1,05,366crore of which CGST is ₹ 20,569 crore, SGST is ₹27,348 crore, IGST is ₹ 48,503 crore (including ₹ 20,745crore collected on imports) and Cess is ₹ 8,947 crore (including ₹1,040 crore collected on imports).

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THE LEGACY

CENTRAL EXCISE AND SERVICE TAX CASE LAWS

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M/s HINDUSTAN UNILEVER LTD2020-TIOL-441-CESTAT-MAD

Shampoo - When there isexemption from affixing MRPunder the Standards of W & MAct, Section 4A Valuationwould not apply.

M/s GTN TEXTILES LTD 2020-TIOL-531-HC-MAD-CUS

Exporter is entitled to AIRdrawback even if part ofprocessing is carried out in a100% EOU by using duty paidinputs: HC

'Rexona' and 'Lux' are Toilet soapsand not Bathing preparations -correctly classifiable underheading 34.01 and not 33.07

M/s HINDUSTAN UNILEVER LTD2020-TIOL-457-CESTAT-KOL

Hope they do not claim itnow as a medicine. Corona!

BAGALKOT CEMENT ANDINDUSTRIES LTD 2020-TIOL-429-CESTAT-BANG

Restriction on cenvat creditunder rule 9 (1) (bb) notapplicable for the Service Taxpaid under RCM.

5ANDHRA PRADESH GRANITEMIDWEST (P) LTD 2020-TIOL-416-CESTAT-HYD

Showing the tax paid as"Claims Receivable" fromGovernment in the BalanceSheet is primary evidence ofnot passing on the burden andrefund entitled.

Keeps dandruff away.Taxmen too.

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THE LEGACY

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SUMA FIBRES AND ALLIES LTD2020-TIOL-387-CESTAT-CHD

When the activity does notamount to manufacture butcredit availed and duty paid.Payment of duty is as good asreversal of credit.

M/s CADBURY INDIA LTD2020-TIOL-417-CESTAT-MUM

"Milk Crumb" is marketableand hence dutiable.

FROM OUR KNOWLEDGE HOUSE

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Swamy Associates conducted a Half Day Workshop on GST NewReturns and E-Invoicing on 14th March 2020 at Chennai and morethan 250 persons from trade & industry, professionals, etc.participated. The workshop was live telecasted through Face-Book via Swamy Associate’s official FB Account. The link to thevideos are provided.

Description Link

New Returns - Session-1 http://bit.do/SA-fb-newreturns-session-1

New Returns - Session-2 http://bit.do/SA-fb-newreturns-session-2

E-Invoicing http://bit.do/SA-fb-newreturns-e-invoicing

PRESENTATION

GST NewReturns &E-Invoicing

https://www.swamyassociates.com/presentations.htm

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CONTACT

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