Alerts & Updates

ELP GST Update

Tax | Jun 14, 2018


Notification No. 26/2018-Central Tax dated June 13, 2018

CBIC notifies CGST (Fifth Amendment) Rules, 2018 hereby amending the following Rules:

  • Section 15(2)(b) of the Central Goods and Services Tax Act, 2017 (‘CGST Act’) provides that any amount that the supplier is liable to pay in relation to a supply, but which has been incurred by the recipient of the supply and not included in the price payable for the goods/services needs to be included in the value of supply. Accordingly, Rule 37 has been amended to provide that amount incurred by recipient towards supply which the supplier was liable to incur, would be deemed to have been paid for purpose of determining reversal of Input Tax Credit (‘ITC’) upon non-payment within 180 days u/s 16(2).
  • A sales tax practitioner / tax return preparer under the erstwhile regime for more than 5 years would be required to pass GST practitioners examination within 18 months from the appointed date in terms of Rule 83(3).
  • Gives retrospective effect from July 1, 2017 to amend Rule 89(5) which prescribes formula for refund of ITC on account of inverted duty structure. The expression ‘Net ITC’ in the formula has been amended to exclude ITC for which refund is claimed under sub-rules (4A) and (4B).
  • Refund to specialized agency of UN, Consulate or Embassy as notified u/s 55 of CGST Act on tax paid against inward supplies of goods and / or services from registered person against a tax invoice, will be available under Rule 95(3) with retrospective effect from July 1, 2017.
  • Amends Rule 97 to provide that 50% of amount of Compensation Cess determined u/s 54(5) of CGST Act r/w Section 11 of GST (Compensation to States) Act shall be deposited in the Consumer Welfare Fund.
  • Under Rule 133(3), Anti-Profiteering Authority can order the deposit of 50% of amount determined as benefit not passed on, in the Consumer Welfare Fund u/s 57 of CGST Act and the remaining 50% in the Fund constituted by concerned State where the eligible person does not claim return of the amount or is not identifiable.
  • No e-Way Bill will be required in terms of Rule 138(14) where empty cylinders for packing of LPG are being moved for reasons other than supply.
  • Dispenses with requirement of furnishing Sr. 4A of Table 4 in GSTR-4 return by composition dealers for tax periods from July 2017 to June 2018.
  • Amends statements 1A and 5B in Forms GST RFD-01 & RFD-01A.

Notification No. 27/2018-Central Tax dated June 13,2018

CBIC notifies 17 goods which may be disposed of by proper officer after their seizure, having regard to their perishable or hazardous nature, depreciation in value with the passage of time, constraints of storage space or any other relevant considerations of said goods. The notified goods inter alia include unclaimed and abandoned goods which are liable to rapid depreciation in value, and any seized goods which are to be released provisionally but not released by the concerned person within 1 month from date of execution of bond.

Notification No. 18768 dated June 8, 2018   

The Government of Odisha constitutes the State Appellate Authority for Advance Ruling under GST to hear appeals against advance rulings pronounced by State AAR.

Advance AUTHORITY Ruling

Indo German Brakes Pvt. Ltd. [2018-TIOL-73-AAR-GST]

Classification – Held that Disc Brake Pads and Brake Shoes being used in automobiles are not ‘friction material’ classifiable under HSN 6813 (Friction material and articles thereof) but are correctly classifiable under HSN 8708 (parts and accessories of motor vehicles of headings 8701 to 8705) and are chargeable to GST at the rate of 28%.

SSSVK Cold Storage Pvt. Ltd. [2018-TIOL-72-AAR-GST]

Classification – The applicant provides space to farmers as well as traders for storage of agriculture products in his cold storage. Held that storage and warehousing of agriculture produce falls under SAC 9986 (Support services to agriculture, hunting, forestry, fishing, mining and utilities) being a more specific entry and not under 9967 (Supporting services in transport). Further held that exemption under notification 12/2017-CT(R) under entry no. 54(e) is service specific and not person specific, hence the entry no 54(e) is equally applicable for agricultural produce of both the farmer as well as the trader.

Divisional Forest Officer [2018-TIOL-70-AAR-GST]

Taxability – Held that no GST is applicable on ‘Marg Sudharan Shulk’ as it is nothing but toll charges collected by applicant from users for using forest road and the said toll charges are being used for maintenance of the forest road. Further, ‘Abhivahan Shulk’ is charged on the basis of quantum and quality of forest product and it cannot be called as toll tax thereby GST @18% is payable on ‘Abhivahan Shulk’ under SAC 9997 as ‘Other services’.

Kanam Industries [2018-TIOL-71-AAR-GST]

Classification – Held that tyres used in E-rickshaw are not tyres of powered cycle rickshaw and hence they are required to be classified under HSN 4013 to attract GST at the rate of 28%.

Macro Media Digital Imaging Pvt Ltd [2018-TIOL-62-AAR-GST]

Classification – Applicant undertakes preparation of printed material as per customers specifications and designs, for which it procures all requisite material and thereafter, transfers the title in printed advertisement materials. Held that, being a movable property, such material falls within the ambit of ‘goods’ u/s 2(52) of CGST Act and are classifiable under HSN 4911 to attract GST at the rate of 12%.

Maheshwari Stone Supplying Company [2018-TIOL-63-AAR-GST]

Classification – Held that limestone slabs which have undergone the process of cutting and polishing and which have been worked beyond the stage of normal quarry products of Chapter 25 are classifiable under HSN 6802.

Sammarth Overseas and Credits Pvt Ltd [2018-TIOL-66-AAR-GST]

Classification – Held that primary function of roof ventilators is to provide ventilation by continuous extraction of air from building, even in trade parlance these goods are identified as roof ventilators only and not as windmills. Hence, they are correctly classifiable under HSN 8414 – Schedule III of Notification 1/2017-CT(R) and would attract GST at the rate of @18%


  • Vide Finance Ministry press release dated June 12, 2018 the Government has extended the ‘Special Drive Refund Fortnight’ from June 14, 2018 to June 16, 2018 for disposal of refund claims filed on or before April 30, 2018 citing “overwhelming response from exporters and pending claims”.

Vide Finance Ministry press release dated June 14, 2018 the Government allows updation of email and mobile number of the authorized signatory by taxpayers on GST system with the assistance of the jurisdictional tax officers.

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