Consequent to the decisions of the 28th GST Council meeting held on July 21, 2018, Finance Ministry vide this Circular withdraws the following:
Applicability of the clarification contained in the Circular No. 210/2/2018- Service tax dated May 20, 2018 to GST:
|Sr. No.||Notification No.||Condition|
|1.||SI. No. 3 of Notification No. 12/2017- Central Tax (Rate) dated June 28, 2017||If it is a pure service and not a composite supply involving supply of any goods|
|2.||SI No. 3A of Notification No. 12/2017- Central Tax (Rate) dated June 28, 2017||If it is a composite supply of goods and services in which the value of supply of goods constitutes not more than 25 percent of the value of the said composite supply|
This Trade Circular is issued in respect of the Announcement of Special Campaign for GST Migration Pending cases in the 28th meeting of GST Council.
|Sr. No.||Queries||Procedure provided in the Trade Circular|
|1.||An eligible taxpayer shall apply to whom for re-opening the Migration Window||– The eligible taxpayers need to submit request letter to the SD created by department for this purpose.
– Eligible taxpayers should approach SDs mentioned against their GSTIN/PID in the list published on Department’s portal
|2.||What all information/documents need to be included in the Request Letter||– Mention non-migrated GSTIN/PID, email id and mobile number of Primary Authorized Signatory.
– Reason for not completing the migration process (for eg. Validation error)
– Proof of receipt of PID from the Department
|3.||What is the procedure of Completion of pending Migration||– Submission of Request Letter & Selection of cases
– Post approval of GSTN eligible taxpayers need to apply for fresh registration
|4.||Waiver of late fee payable||– Eligible taxpayers have to first file returns with the payment of late fees
– The waiver will be effected by way of reversal of the amount paid as late fees in the cash ledger under the tax head.
Taxability of supplies to units/ entities in SEZs – Applicant mainly does the trading of diesel engines and its spare parts along with services of diesel engine, either on Annual Maintenance Charges basis or on as and when required basis. In this regard, a ruling was sought asking whether or not the supply of goods and on site services to customers in Special Economic Zone (“SEZ”) area to any SEZ unit or SEZ developer is ‘zero rated’ supply under Section 16 of the IGST Act, 2017. Also, whether GST is chargeable for the supply of goods or services to SEZ unit or SEZ developer.
It is relevant to note that Applicant supplies to units and developers of SEZ. In this respect, the provisions of Section 16 of IGST Act, 2017 will be applicable in this case and the tax liability will be at zero rate under sub section 1(b) of the IGST Act, 2017. The Applicant may supply without paying tax subject to the provisions under Section 16(3)(a), or he may supply on payment of tax and claim refund subsequently under section 16(3) (b) of the IGST Act, 2017.
Interpretation of the Exemption Notifications – the question before the court was, what interpretative rule can be applied while interpreting a tax exemption provision/notification in case of an ambiguity as to whether it is applicable to the entitlement of the assessee or the rate of the tax to be applied?
The present case was brought before a Constitutional Bench for examining the correctness of Judgment rendered in Sun Export Corporation, Bombay v. Collector of Customs, Bombay [(1997) 6 SCC 564] (“Sun Export case”) case rendered by a three-judge bench earlier. In the said judgment, it was ruled that in case of an ambiguity in a tax exemption provision/notification, the said provision/notification must be interpreted so as to favour the assessee claiming the benefit of such exemption.
Ruling given in the case- The Bench in the case held that every taxing statute including the charging, computation and exemption clause in respect of threshold stage must be interpreted strictly. There were following principal findings in the case:
The Bench overruled the ruling given under Sun Export case in 1997 with respect to interpretation of exemption notification.
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