News & Events

CBIC issued notification in which board Seeks to extend the last date for furnishing FORM GST CMP-08 for the quarter April -June 2019 till 31.08.2019, vide notification no. 35/2019-Central Tax ,dt. 29-07-2019.

Press release issued by CBIC regarding decisions approved by the GST Council in its 36th meeting held on 27.07.2019.

Deadline for filing income tax returns extended to 31 August. NEW DELHI: The government on Tuesday extended the deadline for filing income-tax returns for the FY20 assessment year by individuals and certain non-corporate assessees by one month to 31 August.

GST Highlights 23rd July 2019

18% GST on flat owners paying monthly maintenance of over Rs 7,500 

Flat owners will have to pay GST at 18 per cent if their monthly contribution to resident welfare association (RWA) exceeds Rs 7,500, the Finance Ministry said on Monday. As per the rules, RWAs are required to collect GST on monthly subscription/contribution charged from its members if such payment is more than Rs 7,500 per flat per month and the annual turnover of RWA by way of supply of services and goods exceeds Rs 20 lakhs. In a circular issued to field offices on how should the RWA calculate GST payable where the maintenance charges exceed Rs 7,500 per month per member, the Finance Ministry said the exemption from GST on maintenance charges charged by an RWA from residents is available only if such charges do not exceed Rs 7,500 per month per member. 

CBEC has issued the circular which seeks to clarify issues regarding procedure to be followed in respect of goods sent / taken out of India for exhibition or on consignment basis for export promotion, vide Circular No. 108/26/2019-GST.

CBEC has issued the circular regarding clarification on doubts related to supply of Information Technology enabled Services (ITeS services), vide Circular No. 107/26/2019-GST.

CBEC has issued the notification in which board seeks to carry out changes in the CGST Rules, 2017, vide N/N 33/2019 – Central Tax.

CBEC has issued the notification in which board seeks to extend the last date for furnishing FORM GST CMP-08, vide N/N 34/2019 – Central Tax.

Bombay HC sets aside AAAR order denying ITC on ‘cash carry vans’ for fresh disposal in accordance with law

Recently, the Hon’ble HC of Bombay has admitted the writ petition challenging the order dated August 6, 2018 passed by Appellate Authority for Advance Ruling (“AAAR”), Maharashtra ruling that the input tax credit (“ITC”) is not available on purchase of motor vehicle/vans to carry cash. HC set aside the AAAR order and directed to consider the submissions made by the petitioner and give its conclusion thereon duly supported by the reasons.

Facts:

M/s. CMS Info Systems Limited (“the Petitioner”) is having cash management network pan India. During the course of providing the cash management services, the Petitioner is, inter alia, engaged in managing cash circulation through transporting cash from currency chest to bank branches through the security vans popularly known as “cash carry vans”.

The Hon’ble AAAR, Maharashtra vide order dated August 6, 2018, observed that ITC is not available on purchase of motor vehicles i.e. cash carry vans, which are purchased and used for cash management business and supplied post usage as scrap. It was observed that since the cash carry vehicles are deployed to carry cash and bullion for other than for numismatic purposes, the cash carried by them is to be construed as money and not goods.

Being aggrieved, the Petitioner challenged the order of AAAR, claiming that there was a flaw in the decision making the process as the order failed to deal with the principal submissions of the assessee (after recording the same in the impugned order) viz. ITC would be available in respect of motor vehicles used for transport of money, in view of the definition of ‘goods’ and ‘money’ in the GST law.

Issue involved:

Whether ITC is available on purchase of motor vehicles i.e. cash carry vans which are purchased, used for cash management business and supplied post usage as scrap?

Held:

The Hon’ble High Court of Bombay in Writ Petition No. 5801 of 2019 dated July 9, 2019, noted Petitioner’s submission that the ‘goods’ would include ‘money’ as the cash being transported by them in motor vehicles was not used as a legal tender. Therefore, it was to be treated as ‘goods’ and Section 17(5) of the CGST Act, 2017 at the relevant time had excluded the benefit of ITC in respect of motor vehicles, unless used for transport of ‘goods’.

Accordingly, the HC observed as under:

• The aforesaid principal submission though recorded, has not been dealt with at all in the impugned order. This there is a flaw in the decision making process of AAAR.

• Reliance placed in the impugned order upon the press note issued subsequent to a GST Council recommending to allow ITC in respect of the motor vehicles used for transportation of money, would not by itself lead to the conclusion that prior thereto, money was not included within the definition of ‘goods’. This has to examined in terms of the definition of 'goods' and 'money' found in the CGST Act.

• The entire issue before the AAR that whether the vans/motor vehicles in which the Petitioners were transporting cash, would be money for the purpose of Section 2(52) of the CGST Act, has not been dealt with in the impugned order.

• It is necessary for the Authority to consider the submissions made by the parties before it and give its findings in the context of the submissions made. Ignoring a submission would render the order vulnerable to judicial review by this Court.

Hence, the Hon’ble HC set aside the impugned order and directed the AAAR to consider the submissions made by th

Advance Ruling

M/s Umax Packaging v/s Mr. Nitin Wapa (CGST Member) and Mr. Hemant Jain (SGST Member)

Order dated 19/11/2018

Issue: Whether ITC of IGST paid on ‘bill to ship to’ model admissible to the applicant?

Crux: The applicant is eligible to claim the input tax credit (ITC) of IGST paid on ‘bill to ship to’ model as per the relevant provisions of Section 16 and 17 of Chapter V of CGST Act, 2017.

Do we need to reverse ITC in case of default of the supplier?

Delhi High Court has issued notice to UOI against the petition challenging the blocking to the recipient for default on part of the supplier

Petitioner’s contends that the Department is vested with all the powers to recover tax, interest and charge penalty as well, owing to non-payment of taxes by erring suppliers. There is no reason to deny ITC to registered recipient for default on part of the supplier. Further, Section 16(2)(c), proviso to Section 16(4) is violative to Article 14.

The Hon'ble AAR, Maharashtra held that club and its members are two distinct persons and the amount collected as membership subscription and admission fees from members are liable to GST as the supply of services. No ITC is available on the tax paid on banquet and catering services for holding members meetings and various events, as outward supply is not of the same category.

Case Law

AAP AND CO., CHARTERED ACCOUNTS THROU AUTHORISED PARTNER

Versus

UNION OF INDIA & others

Summary of the case

The writ-application has been filed seeking quashing and setting aside of the press release dated 18th October 2018 to the extent that its para 3 purports to clarify that the last date for availing the input tax credit relating to the invoices issued during the period from July 2017 to March 2018 is the last date for the filing of the return in Form GSTR-3B for the month of September 2018.

It is submitted that the aforesaid clarification is not in consonance with Section 16(4) of the CGST Act/GGST Act which provides for the last date for taking the input tax credit.

Section 16(4) of the CGST Act/GGST Act provides that the last date for taking the input tax credit in respect of any invoice or debit note pertaining to a financial year is the due date of furnishing of the return under Section 39 for the month of September following the end of the financial year or furnishing of the relevant annual return, whichever is earlier.

However, considering technical glitches in the GSTN portal as well as difficulty faced by the tax payers it was decided to keep filing of GSTR-2 and GSTR-3 in abeyance. Therefore, in order to ease the burden of the taxpayer for some time, it was decided in the 18th GST Council meeting to allow filing of a shorter return in Form GSTR-3B for initial period. It was notified vide Notification No.44/2018 Central Tax dated 10th September 2018 that the due date of filing the return under Section 39 of the Act, for the months of July 2017 to March 2019 shall be subsequently notified in the Official Gazette.

Thus, in view of the above, the impugned press release dated 18th October 2018 could be said to be illegal to the extent that its para-3 purports to clarify that the last date for availing input tax credit relating to the invoices issued during the period from July 2017 to March 2018 is the last date for the filing of return in Form GSTR-3B.

The said clarification could be said to be contrary to Section 16(4) of the CGST Act/GGST Act read with Section 39(1) of the CGST Act/GGST Act read with Rule 61 of the CGST Rules/GGST Rules.

With the above, this writ-application stands disposed of for Detail

CBIC has  issued a Press Release dated 3rd July, 2019  giving Clarification regarding Annual Returns and Reconciliation Statement, for taking necessary action.