ELP GST Update

Circulars

Circular No. 49/23/2018-GST dated June 21, 2018

Central Board of Indirect Taxes and Customs modifies its earlier Circular dated April 13, 2018, issued in relation to interception of conveyances and detention of goods for failure to carry documents during the movement of goods, as follows:

• The time period for issuance of order for physical verification/ inspection of the conveyance (ie, Form GST MOV-02 has been reduced from three working days to three days.
• In order to ensure that no further physical verification of goods or conveyance is undertaken, once such verification is carried out in a State or Union Territory, hard copy of the notice/ order issued by tax authority may be shown as proof by transporter/ registered person to another tax authority (in absence of availability of requisite forms on the common portal).
• Only such goods and / or conveyances should be detained or confiscated, in respect of which there is a violation of the provisions of the GST laws.
• Illustratively, where a conveyance carrying 25 consignments is intercepted and person-in-charge of such conveyance produces valid e-way bills and / or other relevant documents only in respect of 20 consignments, detention/ confiscation can be made only with respect to the 5 consignments and the conveyance in respect of which the violation of the GST laws has been established.

Advance Authority Ruling

M/s GE DIESEL LOCOMOTIVE PRIVATE LIMITED [2018-VIL-78-AAR]

Classification – The Applicant bids for a tender floated by the Indian Railways for rendering comprehensive maintenance of locomotive engines. The issue is with respect to qualification of such contract as composite or mixed supply.

AAR held that comprehensive annual maintenance contract should qualify as composite supply of service, since such contract is for one and fixed price, with or without supply of spare parts/ goods. It was also observed that since supply of goods and services was made in conjunction with each other in the ordinary course, condition for qualification as composite supply are fulfilled.

Judicial Update

National Chemical and Dyes Company vs. Union of India & Ors [WP (T) No: 200 of 2018]

The Hon’ble High Court of Uttar Pradesh directs the Revenue authorities to reopen the common portal for filing of Form GST TRAN-1, as the petitioner could not upload the said form due to IT related glitches. Alternatively, the revenue department should entertain the application of the petitioner manually and pass orders on it.

Janki Pesticides vs. Union of India & Ors [WP (T) No: 107 of 2018]

The Hon’ble High Court of Chhattisgarh directs the petitioner, who failed to upload Form GST TRAN-1 due to IT related glitches, to approach IT Grievance Redressal Committee for redressal of grievance in light of Circular No 39/13/2108-GST dated April 3, 2018.