GST HEALER- September issue

`v TABLE OF CONTENTS

2 INKED THOUGHTS
3 TAX NEWS & VIEWS
5 UPDATES
11 mwpNthk; njspNthk;
13 ARTICLES
21 QUERIES & REPLIES

INKED THOUGHTS

Dear Readers,

It gives me an immense pleasure to meet you all with yet another issue. At the outset, I would like to express
my heart-felt gratitude for the appreciable support and noteworthy feedbacks rendered by you after reading the
previous issue. Of course, being impressed by few of those, we have counted upon some of the feedbacks and have been
incorporated certain points in this issue. I request you all to share your thoughts / feedbacks by mailing to gst.healer@
gmail.com.

Teaching is the one noblest profession that makes all other professions possible in this world. Thus, the
prominence of Teaching and Teachers in this world could be understood, I hope. And hence, it will be an unforgivable
mistake on my part, if this write-up does not discuss the Teacher’s Day. As we all know that we celebrate the 5th
September of every year as the Teacher’s Day, I would like to share few thoughts about teaching and it’s commemorative
celebration in India, i.e., the Teachers’ Day. This day of 5th September has been chosen in order to commemorate the
birth anniversary of Dr. Sarvepalli Radhakrishnan. He was a renowned scholar, recipient of Bharat Ratna, first Vice-
President, and second President of independent India. He was born on 5th September, 1888. As an educationist. He was
an advocate of edification and was a distinguished envoy, academician, and above all, a great teacher. On this occasion,
we remember and respect all the teachers who have shaped our life.

However, one should remember that this word ‘teacher’ shall not be restricted to the people who are in
educational institution alone. All those people from whom we learn something are all our teachers. Last but not the
least, our mistakes are our best teachers. As the common adage goes “WHEN YOU MAKE MISTAKES, THE SCHOOL
CARES TO CORRECT BUT THE WORLD PUNISHES”. It is so true in every walks of our life – particularly in the area
of GST Compliance. Many taxpayers are knocking at the doors of the High Courts over the cases related to simple
mistakes made in e-way bills. Never ever thought that these many writ petitions will be filed in respect of the disputes
related to the e-way bills. So, it is of paramount importance for us to understand all the procedure that are being

prescribed under the GST Laws and follow them scrupulously.

As a positive response, to those received feedbacks that highlighted the adoption of few sections in Tamil, we
introduce a new section called “mwpNthk; njspNthk;” in which Particular Concepts will be deciphered in a
series of articles.

Getting back to the point; As the GST law and it’s associated Procedural aspects (GST Portal) are under the trial
and error mode, for reasons attributed to it’s nascent stage and the dynamic nature; filing of writ petition is the only
doorway towards the redressal of taxpayers’ grievances as the Appellate Tribunal has yet been set up. The Hon’ble Apex
Court has urged the Centre, last week, to set up the GST Tribunal immediately. In view of this, better understanding
of the concept of WRIT petition has become very much essential. To cater to such needs of the readers, one great
personality, endowed with rich experience in the Central Tax Department as well as in the legal profession, has joined with
this team and henceforth will write a series of articles on Writ Petition, the first part of which is being published in this issue.

Happy Reading… With Regards
GST Healer

GST HEALER 2

NEWS

E-Way bill - Used Personal effects

Whether e-way Bill is mandatory for the “transportation” of the used vehicle(2nd Hand Car), let’s see:

In one another interesting case, that sheds more light Why the Appeal got dismissed?
on the classification of second-hand cars as “used
personal effects” and the question of requirement Pertinent to the above, in one such similar case of that
of e-way bill for the transportation of the same; a writ of the KUN Motor Company Private Limited and
petition was filed against the revenue, challenging Others v. the Assistant State Tax Officer, Squad No.3
the detention of the ‘RANGE ROVER’ motor vehicle Kerala State, Goods and Service Tax Department and
while the same being transported from Coimbatore to Others [(2019) 60 GSRT 144 (Kerala)] = 2018-TIOL-
Thiruvananthapuram as an ‘used personal effect’. 2925-HC-KERALA-GST, the Division Bench held
that the used vehicles, even if it has run only negligible
The said vehicle was detained by the revenue on the distances are to be categorized as ‘used personal
allegation that the same was transported without effects’.And, in this present case, the vehicle had, in
E-way bill as contemplated under Rule 138 of the fact, run 43 kms – Bench, which is in consonance
Kerala GST Rules, 2017. a Single Judge allowed the with the observations of this Court in the aforesaid
writ petition and quashed the detention order. And decision.
accordingly, the vehicle detained has been released
and consequently the Department is in appeal against The facts in the present appeal is similar, if not almost
this order, which was dismissed by the High Court. identical, to the facts in the above referred decision,
except for the change in place from Puthuchery to
Why because, it is a well known fact that Goods that Coimbatore. Thus the Court opined that there is no
are classifiable as used personal and household effect merit in this Revenue appeal and the same is ought to
falls under Rule 138(14)(a) of the Kerala Goods and be dismissed.
Services Tax Rules, 2017 and are thus exempted from
the requirement of e-way bill. In this particular As, the only reason stated for detaining the goods
case, the petitioner had purchased the vehicle after was that it was transported without the e-way bill,
the payment of appropriate IGST and a temporary the Court has stated that this cannot be defended as
registration also was taken apart from the motor the goods that are classifiable as used personal and
vehicle insurance. household effect (under Rule 138(14) (a) of the Kerala
Goods and Services Tax Rules, 2017) are exempted
And the petitioner has been entrusted with a from the requirement of e-way bill.
responsibility of transporting the said vehicle from
Coimbatore to Thiruvananthapuram, instead of Thus, as per the observation of the High Court, there
driving the same across the State borders. And it is is no requirement of generation of e-way bill as far as
during such transportation, the vehicle was detained the incidence of tax is on the supply and not on the
for the reason of none other than the non-generation nature of transport.
of e-way bill.

Services by way of grant of National Permit to goods carriages on payment of fee - NIL

GST HEALER 3

7. The said decision held that used vehicles, even if it The GST Department’s special drive against tax
has run only negligible distances are to be categorized evasion of gold is yielding good results. The latest
as ‘used personal effects’. We cases include the seizure of gold worth 3.35 crore from
are in respectful agreement with the observations of Kayamkulam and Karunagapally on 17-7-2021. The
this Court in the aforesaid decision. The facts in the owner was slapped with a fine notice worth 20.14 lakh
present appeal is similar if not almost for lack of documents. Sources in the Department said
identical to the facts in the above referred decision, the special drive was initiated in the wake of reports
except for the change in place from Puthuchery to on largescale tax evasion by traders. In August last
Coimbatore. year, the Department had confiscating smuggled gold.
In the circumstances, we are of the view that there is
no merit in this appeal and the same is dismissed. It was based on an order issued by the Gujarat High
Court, that allowed the taxes Department to confiscate
E-way Bill for Gold is the contraband by invoking Section 130 of the GST
under discussion Act. Till then, the State invoked Section 129 of the
GST Act, in which the offender was let off after levying
three per cent GST and an equal amount as a fine.

In other cases, the seized gold is released when the
owner pays double the tax amount and a penalty. The
GST on gold is three per cent. The Department hopes
that the drive will result in more compliance, which
would be reflected in the next filing of returns.

Initially, a proposal by the Kerala State Government IGST on import of medicines for
to implement E-Way Bills for gold transportation was personal use, namely
objected to by some States like Gujarat. They cited
security reasons as leakage of information would (i)Zolgensma for Spinal
threaten the life of carriers. Hence, E-way bill is not Muscular Atrophy
required for transportation of Gold as it is specifically
exempted in sub-rule 14 of Rule 138 of CGST (ii)Viltepso for Duchenne
Rules,2017. Now, Kerala has made another proposal Muscular Dystrophy
to allow State Governments to implement E-Way Bills
for intra-State transportation. (iii) Other medicines used in
treatment of muscular atrophy
The proposal is before the Group of Ministers (GoM) recommended by Ministry of
and would be discussed in its next meeting. Later, Health and Family Welfare and
the GoM will submit its recommendation at the Department of Pharmaceuticals.
GST council meeting. The E-Way bill for intra-State
movement of gold would bring down evasion to a - NIL
significant extend. But, it will not help prevent evasion
in inter-State transportation, which would be higher. 4

GST HEALER

UPDATES

RECOMMENDATIONS OF 45TH
GST COUNCIL MEETING

GST Council, consisting of representatives of Centre, S. Description From To
States and Union Territories, is the sole constitution No.
body entrusted with powers to make decisions/
recommendations relating to GST. 1. Retro fitment kits for vehicles Appl. rate 5%
used by the disabled
In this 45th Meeting, the Council has made important
decisions relating to change in rates of commodities/ 2. Fortified Rice Kernels for 18% 5%
services and also gave some necessary clarifications to schemes like ICDS etc. 12% 5%
certain issues which have under debate on daily basis 12% 5%
between the Tax Officers and the Taxpayers. 3. Medicine Keytruda for treatment
of cancer

4. Biodiesel supplied to OMCs for
blending with Diesel

Ores and concentrates of metals

1. COVID related measures effective up to 5. such as iron, copper, 5% 18%
31.12.2021:
aluminum, zinc and few others

6. Specified Renewable Energy 5% 12%
Devices and parts
GOODS R ATE REMARKS
7. Cartons, boxes, bags, packing 12% / 18% 18%
Amphotericin B, NIL Already existing containers of paper etc.
Tocilizumab NIL concessional GST
5% rates as COVID-19 8. Waste and scrap of polyurethanes 5% 18%
Tocilizumab measures extended and other plastics
5%
Remdesivir, Anti-coagulants till 31.12.2021 9. All kinds of pens 12% / 18% 18%
like Heparin
New set of 10. Railway parts, locomotives & 12% 18%
i. Itolizumab medicaments for other goods in Chapter 86
ii. Posaconazole which concessional
iii. Infliximab GST rate provided Miscellaneous goods of paper like 12% 18%
iv. Favipiravir
v. Casirivimab & till 31.12.2021 11. cards, catalogue,
printed material (Chapter 49 of tariff)
Imdevimab
vi. 2-Deoxy-D-Glucose IGST on import of medicines for
vii. Bamlanivimab & personal use, namely

Etesevimab (i) Zolgensma for Spinal Muscular
Atrophy
12% Nil
(ii) Viltepso for Duchenne Muscular
2. Changes recommended by the Council in 12. Dystrophy
respect of Goods:
(iii) Other medicines used in
2.1. The change in GST rate in respect of the following treatment of muscular atrophy
14 goods has been recommended by the Council. recommended by Ministry of Health
and Family Welfare and Department

of Pharmaceuticals.

IGST exemption on goods
13. supplied at Indo-Bangladesh Appl. rate Nil

Border haats

Unintended waste generated Nil (for the
14. during the production of fish Period 1.7.2017-

meal except for Fish Oil 30.9.2019)

GST HEALER 5

2.2. We all know that the concept of Reverse 5. Changes recommended by the Council in
Charge Mechanism is made applicable to certain respect of Services:
goods vide Notification No.4/2017-Central Tax (Rate)
dated 28.06.2017. The Council, in its current meeting, No. Description From To
has recommended to bring one more good under
the purview of RCM, the supply of Mentha Oil by an Validity of GST exemption on
unregistered person.
1. transport of goods by vessel and air - Nil
The Council has also recommended that the Export from India to outside India is Nil
of Mentha Oil shall be made only “ Without payment
of tax” and refund of unutilized ITC can be claimed, extended up to 30.9.2022.
which means the export of Mentha Oil shall not be
made on payment of IGST Services by way of grant of National
2. Permit to goods carriages on 18%
2.3. The Council has also recommended for
introduction of a special Composition scheme w.e.f payment of fee
01.04.2022 in respect of Brick kilns, with a threshold
limit of Rs. 20 Lakh. Two rate slabs are recommended Skill Training for which Government
by the Council, at the rate of 6% without ITC and
12% with availability of ITC on purchases/ Inward 3. bears 75% or more of the 18% Nil
supplies. expenditure [ presently exemption

3. Decision on Textile and Footwear applies only if Govt funds 100%].
Industries:
4. Services related to AFC Women’s 18% Nil
It has been a long-standing request of the Textile Asia Cup 2022
and Footwear Industries, pending before the GST
Council, to rationalize the Tax rates of the Input at Licensing services/ the right to
par with the Output tax rate since the Industries have
been suffering a lot due to Inverted Duty Structure. In broadcast and show original films,
this meeting as well, instead of making a needed rate
change, has deferred the decision by informing that 5. sound recordings, Radio and 12% 18%
the rate change will be implemented by 01.01.2022. Television programmes [ to bring

4. Decision on bringing of Petroleum under parity between distribution and
GST:
licencing services]
After due discussion by the Council, it has been
decided not to bring the petrol and petroleum Printing and reproduction services
products under the purview of GST at this stage since of recorded media where content is
it is protested by many States as the Excise duty on 6. supplied by the publisher (to bring 12% 18%
petrol is one of the major sources of tax revenue in it on parity with Colour printing of
which the States has its administrative control. images from film or digital media)

7. Exemption on leasing of rolling stock by IRFC to
Indian Railways withdrawn.

E Commerce Operators are being made liable to pay
tax on following services provided through them
(i) transport of passengers, by any type of motor

8. vehicles through it [w.e.f. 1st January, 2022]
(ii) restaurant services provided through it with some
exceptions [w.e.f. 1st January,
2022]

Certain relaxations have been made in conditions

9. relating to IGST exemption relating to
import of goods on lease, where GST is paid on the

lease amount, so as to allow this

GST HEALER 6

6. Clarification in relation to GST rate on S. Description GST
Goods No. RATE %

S. Description GST 11 Paper and paper board containers, 18%
No. RATE % whether corrugated or non-corrugated

Pure henna powder and paste, having no Fresh fruits
additives, under Chapter 14.
1 5% - NIL

Dried

12 Fresh and dried fruits and nuts Fruits

Brewers’ Spent Grain (BSG), Dried and Nuts-

Distillers’ Grains with Soluble [DDGS] 5%/12%
and other such residues, falling under HS
2 5%
12%
code 2303 It is being clarified that all pharmaceutical 12% [ not

13 goods falling under heading 3006 18%]

3 All laboratory reagents and other goods
falling under heading 3822

Essentiality certificate issued by Directorate General

4 Scented sweet supari and flavored and 18% 14 of Hydrocarbons on imports would suffice; no need
coated illachi falling under heading 2106 for taking a certificate every time on inter-state stock

transfer.

Carbonated Fruit Beverages of Fruit 28% GST

5 Drink” and “Carbonated Beverages with + CESS

Fruit Juice” 12% Clarification in relation to GST rate on services

6 Tamarind seeds fall under heading 1209, NIL
Seeds for sowing R ATE
Coaching services to students
7 Tamarind seeds (w.e.f. 1.10.2021) for use 5% provided by coaching institutions
other than sowing. 1 and NGOs under the central sector Exempt
scheme of ‘Scholarships for students

with Disabilities”

28% [for Services by cloud kitchens/
2 central kitchens are covered under
8 External batteries sold along with UPS batteries 5%
Systems/ Inverter other than ‘restaurant service’,
lithium-ion

battery].

9 UPS/inverter 18% Ice cream parlor sells already
manufactured ice- cream.
70:30 ratio 3 18%

for goods

and services

[in the

same 4 Overloading charges at toll plaza Exempt

GST on specified Renewable Energy manner as

10 Projects during the period from 1.7.2017 has been
prescribed
to 31.12.2018,
for the

period on Renting of vehicle by State Transport
Undertakings and Local Authorities
or after 1st 5 Exempt

January

2019]

GST HEALER 7

6 Services by way of grant of mineral 18% [w.e.f 7.2 Clarification relating to Interest rate (18% or
24%):
exploration and mining rights 01.07.2017] In continuation of its earlier decision of interest on
net cash liability alone, the Council has taken up the
7 Admission to amusement parks 18% matter once again to clarify that the applicability of
having rides etc interest under Section 50 of the CGST Act, 2017,
arises only when the availed ineligible ITC is utilized
8 Admission to amusement parks that 28% by the taxpayer. Further, the interest so arise, is to be
have casinos etc calculated only at the rate of 18% rather than 28%

Alcoholic liquor for human consumption is not Though two different interest rates are specified in the
statute, it is clearly specified in the Act that the higher
9 food and food products for the purpose of the rate of 24% is applicable only for those cases where
entry prescribing 5% GST rate on job work services the ITC is availed and utilized in contravention of
Section 42 (10) and 43 (10) of the CGST Act, 2017,
in relation to food and food products the sections relating to matching and reversal of ITC.
In all other cases, lower rate of 18% is applicable.
7. Recommendations relating to GST law and
procedure As we all know that availment and utilization of
ineligible ITC shall finally result in short payment of
7.1. Relaxation in filing ITC-04: tax. The Act also looks the ineligible ITC in the same

As of now, ITC-04 (Job Work related return) needs manner. In cases where ineligible ITC is availed but
to be filed by the taxpayer on quarterly basis. The not utilized, no instances of short payment occurs and
Council has taken up the matter and as a trade hence no interest is levied in the Act. Whereas when
facilitation measure, the frequency of filing ITC-04 the availed ineligible ITC is utilized, there exists short
has been revised from quarterly basis to half-yearly payment of tax and hence the taxpayer is liable to pay
incase of turnover during the preceeding financial interest @ 18% as prescribe din Section 50 (1) of the
year exceeds 5 Crore and to annual basis for taxpayers Act.
whose turnover during the preceeding financial year
is up to 5 crore.

GST HEALER 8

7.3 Transfer of Cash ledger between entities: 7.6 Clarification on determining the relevant date of
a Debit Note:
In a further move towards ease of doing business, a
new recommendation has been made by the Council “Delinking of debit note from invoice” is a term which
to GSTN to enable transfer of balance available in Cash has been under discussion since the date of amendment
ledger (only CGST and IGST- not SGST) between of Section 16 (4) wherein the word “invoice relating to
distinct persons. As per the statute, Distinct persons such” is omitted vide Finance Act, 2020 and came to
are persons with different GSTINs belonging to one effect from 01.01.2021. The said amendment was made
legal entity (single PAN) situated within the same on the basis of recommendation of Law Committee
state or in two different states or in a different country. of the GST Council with an intention to enable the
The implementation of this recommendation will taxpayer to avail Input Tax Credit based on Debit
knock out the need of filing refund claim under excess notes which are issued after the due dates prescribed
payment in cash ledger. Further, this will be helpful under Section 16 (4) of the CGST Act, 2017. As per
for the taxpayer in compliance point of view as well. the amendment, the due date for availing ITC as per
Section 16 (4) shall be determined based on the date of
As of now, transfer of cash balance between heads issuance of Debit note rather than the date of issuance
(CGST/IGST/SGST/Cess) can be made in GST portal of invoice to which the debit note relates to.
through Form PMT-09.
However, the effect of this amendment was not
7.4 Clarification on scope of “intermediary services”: considered by the Authority of Advance Ruling, Gujrat
in the Advance Ruling filed by M/s I-tech Plast India
The term “Intermediary services”, though simple Pvt.Ltd [Advance Ruling No. GUJ/GAAR/R/10/2021].
for reading, but a complicated one when it comes to Hence, the effect of the amendment is once again
IGST Act, as it plays an important role in classifying a clarified by the GST Council that w.e.f 01.01.2021,
supply made to foreign entity as “IMPORT/ EXPORT the date of issuance of debit note (and not the date
OF SERVICE”. Hence, the Coucil has made a of underlying invoice) shall determine the relevant
recommendation to clarify the scope of Intermediary financial year for the purpose of section 16(4).
services and accordingly Circular 159/15/2021-
GST dated 20.09.202, covering various aspects with 7.7 Non-requirement of Invoice copy for E-invoice
suitable illustrations is issued. cases:

7.5 Clarification relating to interpretation of the The Concil has clarified that it is not required for the
term “merely establishment of distinct person” in persons who generate e-invoice to carry the physical
condition (v) of the Section 2 (6) of the IGST Act copy of the tax invoice when the supplied goods are
2017 for export of services. in transit.

Like Intermediary services, the Council has also 7.8 Applicability of restriction on refund under Rule
made recommendations to clarify the term “Mere 54(3):
establishment of distinct person” which is also forms
part in determining the Export of Service. The As per provisio to Rule 54(3) of the CGST Rules, 2017,
clarification in this regard is issued by CBIC vide refund of unutilized ITC shall not be allowed in cases
Circular No. 161/17/2021-GST dated 20.09.2021. where the goods exported out of India are subjected
to export duty. Based on this, in some instances,
entire refund was disallowed for some taxpayers who
exports goods which are subjected to Export Duty as
well as Goods which are not subjected to Export Duty.

GST HEALER 9

In this regard, the Council has clarified that restriction 8.3. Restriction in Bank Account for Refund:
under proviso to Rule 54 (3) shall be applicable only
on goods to goods basis. i.e., restriction is applicable The Council has recommended to disburse the refund
only on those goods which are actually subjected to amount only to those bank account which are linked
export duty and refund of ITC is eligible on those with the same PAN on which GST registration is
goods which are not subjected to Export Duty if a obtained.
taxpayer exports both type of goods in a relevant tax
period. 8.4. Restriction in filing GSTR-3B returns:

As of now, many irregular taxpayers follow the practice
of filing GSTR-1 properly inorder to make ITC
available in GSTR-2B of their recipients. However,
the tax liabilities are not being discharged properly in
GSTR-3B. In order to curb such practices, the Council
has recommended to make suitable amendment in
Rule 59(6) of the CGST Rules, 2017 to restrict the
taxpayers from filing GSTR-1 unless he has furnished
the GSTR-3B of the previous tax period.

8. Measures for streamlining compliances in 8.5. No ITC unless reflected in GSTR-2B :
GST:
As of now, the taxpayers are allowed to avail to the
8.1. Mandatory of Aadhaar authentication: extent of 5% in excess of the ITC reflected in GSTR-
2B. This relaxation is going to be done away with. In
To curb the fake registrations and GST refund scams, order to make further restriction in the availment of
the Council has made recommendation to mandate ITC under Rule 36 (4), the Council has proposed to
Aadhaar authentication for filing refund claim and for make necessary amendments in Rule 36(4) so as to
filing application revocation of cancelled registration. allow the taxpayers to avail ITC only when the ITC got
reflected in GSTR-2B. For effecting this, the Council
has proposed to insert a new clause (aa) in Section
16 (2).

8.2. Auto population of late fee of GSTR-1: The taxpayers to avail ITC only
when the ITC got reflected in
As of now, late fee for GSTR-3B is auto calculated by
GST portal and the liability is included in GSTR-3B GSTR-2B
of the subsequent months. Though late fee for delayed
filing of GSTR-1 is prescribed in the statute, the same
is not included automatically in the GSTR-3B returns.
The Council, in order to improve GST compliance, has
recommended for auto-population of late fee liability
of GSTR-1 in the respective columns of GSTR-3B.

GST HEALER 10

ARTICLE

அறிவ�ோம் தெளிவ�ோம்

E-Way Bill - பாகம் 1

புதிதாக த�ொடங்கப்பட்டுள்ள இந்த அதனால்தான் இந்த வழக்கு உச்சநீதிமன்றம்
“அறிவ�ோம் தெளிவ�ோம்” பகுதியில் குறிப்பிட்ட வரை சென்றது, எனவே இந்தப் பகுதியில்
ஒரு பகுதியைப் [CONCEPT] பற்றி மிக ஆழமாக E-WAYBILL பற்றி மிக விரிவாக ஒரு த�ொடராக
விவாதிக்க இருக்கின்றோம். அந்த வகையில் விவாதிக்க உள்ளோம்.
தற்சமயத்தில் அதிக விவாதத்திற்கும் [dispute]
மற்றும் சந்தேகத்திற்கும் இடமளிக்கும் E-WAY BILL
[ambiguity] வகையிலான தலைப்புகள்
இடம்பெறவிருக்குகின்றன. 2018-19 ஆம் நாம் ப�ொதுவாக அண்டை மாநிலத்திற்கு
ஆண்டின் த�ொடக்கத்தில், E-WAY BILL சாலை மார்கமாக செல்லும்போது சரக்கு
நடைமுறைப்படுத்தப்பட்டது அன்றிலிருந்தே மிக வாகனங்கள் அண்டை மாநிலத்தின் எல்லை
அதிகமான எண்ணிக்கையில் WRIT PETITION அருகே மிக நீண்ட வரிசையில் காத்திருப்பதை
கள் நீதிமன்றங்களில் குவியத் த�ொடங்கின. கவனித்திருப்போம். அது SALES TAX CHECKPOST
என்பதை புரிந்து க�ொள்ள இயலும். GST சட்டம்
E-WAY BILL நடைமுறைப்படுத்தப் பட்டு மூன்று அமலுக்கு வந்தவுடன் அணைத்து CHECKPOST
ஆண்டுகள் ஆகியும் அது த�ொடர்பான DISPUTE களும் அகற்றப்பட்டுவிட்டன. அதற்கு பதிலாக
கள் வந்துக�ொண்டே தான் இருக்கின்றன, மிக E-WAYBILL முறை அறிமுகம் செய்யப்பட்டது.
சமீபத்தில் E-WAY BILL த�ொடர்பான ஒரு வழக்கு அதாவது ஒரு ப�ொருளை ஒரு இடத்தில் இருந்து
நமது நாட்டின் மிக உயரிய நீதிமன்றமான மற்றொரு இடத்திற்கு க�ொண்டு செல்லும்போது
உச்சநீதிமன்றத்தினை[SUPREME COURT ] அந்த ப�ொருளைப் பற்றிய விவரங்களை
சென்றடைந்தது. ஆனால் அவ்வழக்கின் E-WAYBILL PORTAL இல் REGISTER செய்து
பின்புலத்தைப் ஆராய்ந்து பார்த்தால் அதற்கான E-RECEIPT ஐ பெறவேண்டும். இது
மிக சாதாரணமானதுதான். அதாவது ஒரு குறிப்பாக வரி ஏய்ப்பை தடுக்கும் ந�ோக்கத்தில்
லாரியானது ப�ொருளை ஏற்றிக்கொண்டு செயல்படுத்தப்பட்டது. GST வரி 01-07-2017
KARNATAKA விலிருந்து BALANGAR [TELANGANA] அன்றிலிருந்து நடைமுறைக்கு வந்தாலும்
என்னும் இடத்திற்கு முறையாக E-WAY BILL E-WAYBILL 2018-19 ஆண்டின் த�ொடக்கத்தில் தான்
மற்றும் TAX INVOICE வைத்துக்கொண்டு நடைமுறைக்கு வந்தது. E-WAYBILL சம்பந்தமான
சென்றுக�ொண்டிருந்தது. அந்த லாரியை விதியை பற்றி காண்போம்.
JEEDIMETALA[TELANGANA] என்ற இடத்தில்
அதிகாரிகள்ச�ோதனைசெய்தனர்.அப்போதுதான் Rule 138 of CGST Rules, 2017:
அந்த லாரி ஓட்டுனருக்கு, BALANGAR என்ற
இடத்தை தாண்டி சென்றுவிட்டோம் என்பதே 138. (1) Every registered person who causes movement
தெரிய வந்தது. லாரி டிரைவர் கர்நாடக of goods of consignment value exceeding fifty thousand
மாநிலத்தை சேர்ந்தவர் என்பதால் தெலுங்கானா rupees—
மாநிலத்தில் உள்ள BALANGAR என்ற இடத்தை (i) in relation to a supply; or
சரியாக கண்டுபிடிப்பதில் அவருக்கு சிரமம் (ii) for reasons other than supply; or
இருந்தது. இதனால் பல சட்டசிக்கல்கள் வந்தது, (iii) due to inward supply from an unregistered person,
E-WAYBILLஐ ப�ொறுத்தவரை LEGAL PROVISIONS shall, before commencement of such movement, furnish
களையும் தாண்டி பல்வேறு நடைமுறை information relating to the said goods in Part A of
சிக்கல்களை க�ொண்டதாக விளங்குகிறது. FORM GST EWB-01, electronically, on the common
portal
GST HEALER
11

மேலே உள்ள இந்த விதிதான் EWAYBILL BIHAR:
க்கான அடிப்படை விதி. அதாவது GST இல் நடைமுறைப்படுத்தப்பட்ட நாள்: 20-04-2018.
ரூபாய் 50000க்கு அதிகமான மதிப்புள்ள ஒரு • 1லட்சம் வரையிலான மதிப்புள்ள அனைத்து
ப�ொருளை ஒரு இடத்திலிருந்து மற்றொரு
இடத்திற்கு க�ொண்டு செல்லும்போது EWAYBILL ப�ொருள்களுக்கும் e-waybill அவசியம்
GENERATE செய்வது கட்டாயமாகும். ஆனால் இல்லை.
இதற்கு பல்வேறு விதி விலக்குகள் உள்ளன.
அவற்றை பின் வரும் பகுதிகளில் காண்போம். MADHYA PRADESH:
GST என்பது ஒரே நாடு, ஒரே வரி, ஓரே சட்டம் என்று • நடைமுறைப்படுத்தப்பட்ட நாள்: 25-04-2018.
கூறப்பட்டாலும் EWAYBILLஐ ப�ொறுத்தவரை இது • குறிப்பிட்ட 11 ப�ொருள்களுக்கு மட்டும்
மாநிலத்திற்கு மாநிலம் வேறுபடும். அதற்கான
அதிகாரம் RULE 138(14) (d) of CGST Rules, 2017 இல் e-waybill A ஆகும்.
உள்ளது. சில மாநிலங்களைப் பற்றி காண்போம். R AJASTHAN:
• நடைமுறைப்படுத்தப்பட்ட நாள்: 20-05-2018.
KARNATAKA: • ஒரு ப�ொருளை job work கிற்காக க�ொண்டு
நடைமுறைப்படுத்தப்பட்ட நாள்: 01-04-2018
செல்லும்போது e-waybill அவசியம்
GUJAR AT: இல்லை.
நடைமுறைப்படுத்தப்பட்ட நாள்: 15-04-2018. GOA:
• நடைமுறைப்படுத்தப்பட்ட நாள்: 01-06-2018
Salient Features: • குறிப்பிட்ட 22 ப�ொருள்களுக்கு மட்டும்
• ஒரே நகரத்திற்குள் செல்லும் சரக்குகளுக்கு e-waybill அவசியம் ஆகும்.

[intra-city movement of goods] E-WAYBILL TAMILNADU:
அவசியம் இல்லை. • நடைமுறைப்படுத்தப்பட்ட நாள்: 02-06-2018
• மாநிலத்திற்குள் செல்லும் சரக்குகளுக்கு • 1 லட்சம் வரையிலான மதிப்புள்ள அனைத்து
[Intra-state movement of goods] குறிப்பிட்ட
19 ப�ொருட்களுக்கு மட்டும் தான் EWAYBILL ப�ொருள்களுக்கும் e-waybill அவசியம்
அவசியம். இல்லை.
KER AL A : • குறிப்பிட்ட 100 ப�ொருள்களுக்கு மட்டும்
நடைமுறைப்படுத்தப்பட்ட நாள்: 15-04-2018. e-waybill அவசியம் இல்லை[irrespective of
value].
Salient Features:
• கீழ் கண்ட ப�ொருட்களுக்கு e-waybill To download the list of 100 items for which ewaybill is
not required irrespective of value, click here...
அவசியம் இல்லை,
Sale of goods using sales van https://akassociatestuty.com/notification-no-9-2018/
Rubber latex
Rubber sheets - இதன் த�ொடர்ச்சி இனி
A scrap வரும் மாத இதழ்களில் …
Spices

• GST இல் பதிவு செய்யாத நபருக்கு விற்பனை
செய்யும் ப�ொழுது 25km வரை e-waybill
அவசியம் இல்லை.

GST HEALER 12

ARTICLE

The Cobra Effect

GST- FOB Value Vs Invoice Value

Introduction: invoice raised by the exporter. As far as the recipient is
concerned, he is least bothered about the cost of freight
The “Cobra effect” is a term in economics which and insurance, instead he pays a single consideration
refers to a situation when an attempted solution to his supplier (exporter).
to a problem makes the problem worse. Such
effect happens in GST laws too when clarification for
interpretation is also mis-understood. In this article, I
wish to discuss one such effect when the Government
issued a circular to clarify the ambiguity prevailed in
determination of value of supply viz. whether FOB
value or Invoice value has to be adopted as value of
supply in case of Export of goods under GST regime.

Trade Practice: Free On Board (FOB)

At the outset, it is of paramount Law governing determination of Export
importance to understand the practice being followed value:
by the Trade before getting in to legal aspects. Export/
Import sales are done in international market as During pre GST regime, there exist two separate
per INCOTERMS which lay down internationally statutes, viz., Central Excise Act, 1944 and the Finance
accepted forms of transactions such as FOB, C&F, Act, 1994 (for service tax matters), for determination
CIF etc. of value of goods and that of services respectively.
However, GST being a tax levied on combination of
FOB - Free on Board i.e. value of goods at the time of both viz. Goods and / or Services, valuation under
Board. GST law stands accordingly.

CIF - Cost, Insurance & Freight i.e. value of goods at 13
the time of delivery to recipient’s port – which
includes the cost of transportation and insurance.

Different exporters adopt different transactions as per
the agreements entered into between the exporters
and their customers, and raise invoice for the amount
of agreed transaction. In case of CIF contracts, the
exporters incur the expenses of freight and insurance,
and raise a single invoice on their customers (single
consideration). The responsibility to pay the freight
and insurance rests with the exporter. In turn the
recipient of goods pays the amount mentioned in the

GST HEALER

There is a specific section provided in GST law to cipient to the supplier (exporter) for the said supply
determine the value of supply. Section 15 of CGST is the transaction value which is in turn considered as
Act, 2017 which is made applicable to IGST Act too the value of supply. In CIF contracts the recipient pays
vide section 20 of IGST Act,2017 , provides valuation the price mentioned in the invoice- including freight
under GST. The relevant extracts are re-produced and insurance- to his exporter supplier for the supply
below. of goods.

“15 (1) value of a supply of goods or services or both Since exports and imports are considered as inter-
shall be the transaction value, which is the price state supplies in terms of section 7 of IGST Act 2017,
actually paid or payable for the said supply of goods or the valuation there to has to be strictly arrived under
services or both where the supplier and the recipient the provisions of GST law only.
of the supply are not related and the price is the sole
consideration for the supply. Clarifications issued by the Department:

(2) The value of supply shall include––– There were different apprehensions among the
traders with regard to under which law valuation for
(a) any taxes, duties, cesses, fees and charges levied export of goods has to be done viz. whether under
under any law for the time being in force other than GST Act or under Customs Act. Understanding this,
this Act, the State Goods and Services Tax Act, the the CBIC issued a circular No.37/11/2018-GST dated
Union Territory Goods and Services Tax Act and the 15.03.2018 which clarifies that valuation has to be
Goods and Services Tax (Compensation to States) strictly followed under GST Act only. The relevant
Act, if charged separately by the supplier; extracts of the circular are as follows.

(b) any amount that the supplier is liable to pay in “9. Discrepancy between values of GST invoice and
relation to such supply but which has been incurred shipping bill/bill of export: It has been brought to
by the recipient of the supply and not included in the notice of the Board that in certain cases, where
the price actually paid or payable for the goods or the refund of unutilized input tax credit on account
services or both; of export of goods is claimed and the value declared
in the tax invoice is different from the export value
(c)incidental expenses, including commission and declared in the corresponding shipping bill under the
packing, charged by the supplier to the recipient of Customs Act, refund claims are not being processed.
a supply and any amount charged for anything done The matter has been examined and it is clarified that
by the supplier in respect of the supply of goods or the zero rated supply of goods is effected under the
services or both at the time of, or before delivery of provisions of the GST laws. An exporter, at the time of
goods or supply of services; supply of goods declares that the goods are for export
and the same is done under an invoice issued under
(d) interest or late fee or penalty for delayed payment rule 46 of the CGST Rules. The value recorded in
of any consideration for any supply; and the GST invoice should normally be the transaction
value as determined under section 15 of the CGST
(e) subsidies directly linked to the price excluding Act read with the rules made thereunder. The same
subsidies provided by the Central Government and transaction value should normally be recorded in the
State Governments.” corresponding shipping bill / bill of export.
From reading of the above provisions, it makes am-
ply clear that value of supply of goods or services is
the transaction value. And what is transaction value is
clearly penned down in the statue itself. It can be de-
duced, from the above, that in case of export of goods
under CIF contracts, the actual price paid by the re-

GST HEALER 14

Q & A9.1 During the processing of the refund claim, the In some instances, exporter raises invoices in advance

value of the goods declared in the GST invoice and and exports the goods at a later period. In such

the value in the corresponding shipping bill / bill of cases, value declared in invoice and the invoice value

export should be examined and the lower of the two mentioned in the shipping bill may vary due to change

values should be sanctioned as refund in exchange rate.

The above circular reiterates that zero-rated supplies In such cases, for the purpose of refund, lower of the
(export of goods or services) are effected under GST value i.e. value mentioned in the GST invoice and
laws and thereby value of supply shall be the invoice invoice value mentioned in the shipping bill shall be
value (transaction value). The above circular is often taken in to account. In any case, FOB value shall not
misunderstood as the “value in the corresponding be taken as value of supply in respect of CIF contracts.
shipping bill” refers to “FOB value”. The above The content of the circular is tabulated below to
conundrum is better understood if one pays close understand the value of exported goods under CIF
attention to nature of contracts and shipping bills. contracts

In shipping bill, there are two values need to be For Daily Updates
declared by the exporter i.e 1. FOB and 2. Invoice mail us at
Value. The exporter needs to declare the value of
goods at the time of export in FOB column and the [email protected]
actual transaction value (the amount which is actually
going to be received from his customer) in “Invoice
Value” column.

Value as per GST Invoice value FOB value Export value as Reason
Invoice recorded in recorded in clarified in the
Shipping Bill Shipping Bill Circular

AB CDE
100 90 80 90 B is lower than A
90 100 80 90 A is lower than B

100 100 90 100 A or B as both are
same

Coaching services to students provided by coaching institutions and
NGOs under the central sector scheme of ‘Scholarships for students
with Disabilities” is exempt from GST - EXEMPTED

GST HEALER 15

FAQ issued by the Delhi Customs:

After roll out of GST law w.e.f. 1st July 2017, the Conclusion:
department has come out with many FAQs as a ready
reference to help the trade to comply with GST laws. To sum it up, as far as GST law is concerned, valuation
Though FAQs are not legally binding on anyone, of a supply, both DTA sales (supply within India) and
normally it can be considered as an inference to Export of goods, is governed under section 15 of the
interpret/understand the law. The Delhi Customs has CGST Act, 2017 only. In other words, there is no
issued FAQ on IGST refund on goods exported out of separate legal provision for valuation with regard to
India. In answer to Question No. 16 of the said FAQ, export of goods. As per clause (c) of section 15(2) of
the following reference has been made. CGST Act, 2017 incidental expenses before delivery of
goods shall form part of value of such supply. In cases
“After the implementation of GST, it was explained in of CIF contracts, under INCOTERMS, freight and
the advisories that the details an exporter is required insurance are incidental expenses in respect of supply
to enter in the “invoice” column while filing the SB of goods -before delivery. Therefore, export of goods
pertains to the invoice issued by him compliant to GST under CIF contracts, value of supply is the transaction
Invoice Rules. The invoice number shall be matched value which represents the value mentioned in the
with GSTN to validate exports and IGST payment. invoice, which includes freight & insurance, raised by
It was conveyed and reiterated that there should not exporter to his customer.
be any difference between commercial invoice and
GST invoice after implementation of GST since as Further, the intention of the Board is to clarify that
per the GST law, IGST is to be paid on the actual the export value shall be the lower of the two values,
transaction value of the supply between the exporter viz., invoice value mentioned in GST invoice and the
and the consignee, which should be the same as the invoice value mentioned in Shipping Bills.
one declared in the commercial invoice.”
Source : Taxguru
GST HEALER
https://taxguru.in/goods-and-service-tax /gst-fob-
invoice-cobra-effect.html

16

ARTICLE

WRIT

Dear readers, A.Shanmuga Sundaram B.A.B.L.

In general we, in our day today life often come Advocate & Consultant
across legal terms which are relevant in our daily Superintendent of Central Tax (Retd)
activities. However, we either ignore or neglect
to learn more into such legal terms. One such legal The English law and its courts for whom writs as a
term “WRIT”, revolve around and carries much means of commencing a court action was a form of
importance. The term protects us from atypical “off-the-shelf” justice designed to enable the English
situations and remedy lies in obtaining a WRIT law courts to rapidly process lawsuits by allocating
in the form of orders from court and such orders each form of complaint into a standard category
can only resolve and safeguard our rights, which which could be dealt with by standard procedures.
will enable us to lead a protected and healthy The complainant simply applied to the court for the
business life. Probably, we are in need of some more writ most relevant to his complaint to be sent to the
material to understand the kind and varieties of wrongdoer, which ordered him under royal authority
WRITS available and provided to us by the Indian to attend a royal court to answer for his actions.
constitution. The previous system of justice at the royal court of
Chancery was tailor-made to suit each case and was
Historical evolution of WRITS : thus highly time-consuming.

The evolvement of WRIT was a unique development Thus eventually the obtaining of a writ became
of the Anglo-Saxon monarchy and consisted of brief necessary, in most cases, to have a case heard, in one
administrative orders issued by English Kingdom. of the Royal Courts, their own system of writs which
Instructions to local courts, in the beginning, were often reflected or anticipated the common law writs.
the writ(s) document issued by the King’s Chancellor. The writ was “served” on (delivered in person to) the
First, writs became mainly framed in Latin, not wrongdoer and acted as a command that he should
Anglo-Saxon; second, they covered an increasing appear at a specified time and date before the court
range of royal commands and decisions. Writs of specified in the writ, or it might command some other
instruction continued to develop under his immediate act on the part of the recipient.
successors, but it was not until Henry II, that writs
became available for purchase of properties by private
individuals seeking justice, thus initiating a vast
expansion in their role within the common law.

Overloading charges at toll
plaza are exempt from GST
being akin to toll -EXEMPTED

GST HEALER 17

Over a period of time, opposition to the creation of The Constitution broadly provides for five kinds of
new writs by the Chancery increased. For example, in “prerogative” writs those are:
1256 a court was asked to quash a writ as “novel, un-
heard of, and against reason”. Ultimately in 1258, the 1. Habeas corpus,
King was forced to accept the Provisions of Oxford, 2. Certiorari,
which among other things, prohibited the creation of 3. Mandamus,
new forms of writ without the sanction of the King’s 4. Quo warranto and
council. New writs were created after that time only 5. Prohibition
by the express sanction of Parliament and the forms To keep the issue alive and entertaining, friends, the
of writ remained essentially static, each writ defining a above reading certainly not a novel or enthusiastic
particular form of action. one to continue for few more pages/minutes. Keeping
that in mind it is opined to continue the WRIT wise
WRITS under Indian Constitution : explanations and relationship between the tax payers
and available remedial measures in obtaining a writ
We, Indian derive guaranteed Fundamental rights in the course of business will be brought out in a
enshrined between Article 12 to 35 such as right continuous manner in to the next issues.
to equality, the right to freedom, the right against
exploitation, the right to freedom of religion, cultural Contact Us
educational rights, and the right to constitutional
remedies (Article 32 and 226). Our forefathers 6380592749
have derived or rather adopted these all rights from
England’s of Rights (1689), the United States of Rights 18
and ratification (15 December 1791, and France’s
Declaration of the Rights of Man ratified (26 August
1789).

Why rights are guaranteed to us:

We Indian, on becoming Indian citizen happened to
surrender all our birth rights to the state (that is India)
and expects our state that is India to protect and
guarantee the rights enshrined in the constitution.
When our legitimate rights are under threat or being
deprived off, then, it is the duty of the state to intervene
and restore the deprived or threatened right to the
individual.

Under the Indian legal system, the guaranteed
Fundamental rights and other rights as per Indian
constitution are protected by the Hon,ble Supreme
court of India and the Hon’ble High courts of various
States. Jurisdiction to issue ‘prerogative writs’ is given
to the Supreme Court, and to the High Courts of
Judicature of all Indian states. The Hon’ble Supreme
Court, the Apex court in the country, may issue writs
under Article 32 of the Constitution for enforcement
of fundamental rights and for enforcement of rights
other than fundamental rights under Article 139.
While, the Hon’ble High Courts, the superior courts
of the States, may issue writs under Articles 226.

GST HEALER

ARTICLE

Colon Vs Semicolon

A matter of Letter Vs Spirit

It’s not only the interpretation of the Definite Provided that the input tax credit in respect of such

Article(the) and that of the Indefinite Articles(a & an) goods or services or both shall be available, where it is

that is going to rule the roost, when the question of obligatory for an employer to provide the same to its

the appropriate interpretation of law comes, which employees under any law for the time being in force.”

has been dealt with in a comprehensive manner, in

our last issue; but the appropriate usage of Colon & This colon, after sub-clause (iii), when interpreted

the Semi Colon, too without giving due

So, where did this start?. “the appropriate usage of consideration to the
It’s with the revised Section
17(5)(b) of the GST ACT Colon & the Semi Colon intent of the said law, in
which in its entirety has This tug of war between the
been reproduced as be- usage of Colon & Semicolon it’s entirety, could make
low: started with an Advance
“(b) the following supply Ruling of the Gujarat this proviso applicable
of goods or services or Advance Ruling Authority,
both— Gujarat Advance Ruling to only Section 17(5)(b)
(i) food and beverages, Authority has dealt with
outdoor catering, beauty (iii) instead of the entire
treatment, health services, this matter and in brief ”
cosmetic and plastic Section 17(5)(b), as it
surgery, leasing, renting or
hiring of motor vehicles, is actually intended for.
vessels or aircraft referred
to in clause (a) or clause Thus, if it is a semi-colon
(aa) except when used for
the purposes specified (;) instead of colon (:), it
therein, life insurance and
health insurance: would have been a perfect

ending, but, that is not the

case.

This tug of war between

the usage of Colon &

Semicolon started with

an Advance Ruling of the

Gujarat Advance Ruling

Authority, delivered

recently in the matter

of Tata Motors Limited

[ADVANCE RULING NO.

Provided that the input tax credit in respect of such GUJ/GAAR/R/39/2021, Dated 30th July, 2021]. The
goods or services or both shall be available where an Gujarat Advance Ruling Authority has dealt with this
inward supply of such goods or services or both is used matter and in brief, has held that the aforementioned
by a registered person for making an outward taxable proviso is applicable to Section 17(5)(b)(iii) only and
supply of the same category of goods or services or not the entire Section 17(5)(b). Had it been only for
both or as an element of a taxable composite or mixed the “letter” of the said provision (without reading
supply; between the lines) and not the spirit or intention
(ii) membership of a club, health and fitness centre; of the law, the stand of the Gujarat Advance Ruling
and Authority can be considered right. However, it can
(iii) travel benefits extended to employees on vacation not be so, as any law could only be considered as a
such as leave or home travel concession: whole only in it’s letter and spirit and not in just any
one or the other of these two.

GST HEALER 19

Having said this, a simple reading of this Section 17(5) Ministry of Law & Justice has clarified categorically
(b) clearly shows that these provisions are applicable that the said proviso is not only applicable to Section
both for the supply of Goods & Services and not 17(5)(b)(iii) but it is applicable in the larger context of
for Services (as of the travel benefits extended to Section 17(5)(b) in consonance with the intention of
employees on vacation such as leave or home travel the GST Council.
concession), alone.

Also, there is no statutory obligation on the part of A law is complete and will serve it’s purpose, only,
the employer to provide leave travel or home travel when it is interpreted in it’s letter and spirit. Thus,
concession to its employees. Thus it’s needless to it’s not Letter Vs Spirit but it is “in Letter and Spirit.
mention here that, the restricted applicability of this
provision of availing of Input Tax Credit to this Section
17(5)(b)(iii), alone, in itself will make this provision,
redundant.

Further, it may please be noted that the said amendment
has been carried out pursuant to the GST Council’s
decision in its 28th meeting held on 21.07.2018. The
Press Release issued by the Ministry of Finance on
the very same day has communicated the decisions in
brief and with regard to this particular amendment,
the same [ref: point 9(e)] reads as below:

“Scope of input tax credit is being widened, and Facility of filing GSTR- 3B/
it would now be made available in respect of the GSTR -1 OR using IFF by
following: companies using electronic
(a) --------- verification code (EVC),
(b) --------- instead of Digital Signature
(c) --------- Certificate has been extended
(d) --------- till 31-10-2021.
(e) Goods or services which are obligatory for an
employer to provide to its employees, under any law
for the time being in force”
Therefore, the said Press Release, at least, has not
conveyed any qualification or restrictive meaning of
the said proviso.
Further, while refering the section-wise commentary
of Ministry of Law and Justice dated 30.08.2018, on
the subject Amendment Act i.e., Section 17(5)(b),
which is as below:
“ITC allowed in respect of food and beverages or
both where the provision of such goods or services
or both is obligatory for an employer to provide to its
employees under any law for the time being in force.”
It is clear that, this canteen service has nothing to with
Section 17(5)(b)(iii) i.e. leave travel or home travel
concession. Therefore, this such Commentary of

GST HEALER 20

Q&A

QUERIES & REPLIES

QUERY NO . 1

If a supplier has failed to collect tax from his recipient or
has collected less tax than the actual tax payable during the
year 2017-18, whether the said supplier can raise debit note
for differential GST now in respect of the supplies made
during the year 2017-18?. If yes, whether the recipient will
be able to avail ITC on such debit notes?

Answer: The phrase “invoice relating to such” in the above
section was omitted vide Section 120 of the Finance
It is brought to your kind notice that Section 16(4) of Act, 2020. The said amendment was proposed vide
CGST Act 2017 provides time limit for availing ITC in Clause 118 of the Finance Bill 2020. The said clause is
respect of invoices/debit notes raised by the supplier. given the objective of amendment of sec 16(4) which
Section 16(4) got amended during the budget 2020 is as below. Clause 118 of the Bill seeks to amend sub-
and came into force with effect from 01-01-2021. It is section (4) of section 16 of the Central Goods and
pertinent to mention both the versions of sec 16(4) i.e. Services Tax Act so as to delink the date of issuance of
prior amendment and post amendment. debit note from the date of issuance of the underlying
invoice for purposes of availing input tax credit.
Prior amendment:
From the above, it is crystal clear that ITC can be
“(4) A registered person shall not be entitled to take availed by the recipient on the strength of the debit
input tax credit in respect of any invoice or debit note note(s) raised now, even though the relevant supply
for supply of goods or services or both after the due was made and also invoice raised during 2017-18. In
date of furnishing of the return under section 39 for other words, there is no link between the debit note
the month of September following the end of financial and the relevant invoice date.
year to which such invoice or invoice relating to such
debit note pertains or furnishing of the relevant annual However, there is another school of thought by
return, whichever is earlier.” certain people. They are seeing this with negative
connotation. They say section stands same during
Post amendment: prior amendment as well as post amendment. But
when parliament amends something in the Act, it
“(4) A registered person shall not be entitled to take must have been done with an intention. If there is
input tax credit in respect of any invoice or debit note no intention for amending the Act, then Parliament
for supply of goods or services or both after the due would not have amended the Act.
date of furnishing of the return under section 39 for
the month of September following the end of financial Hence, we strongly advocate that ITC can be availed
year to which such invoice or invoice relating to such on the basis of debit notes raised now for the supplies
debit note pertains or furnishing of the relevant annual made and invoices raised during 2017-18.
return, whichever is earlier.”
21
GST HEALER

QUERY NO . 2 [email protected],

We are sending our goods for Job Work to another person’s
location. As it is not a supply, we do not raise invoice and
E-way bill. Recently our vehicle was intercepted by Officer
and penalty was also imposed. There is no clarity in Job
Work procedure. Please explain the complete procedure
to be followed up during Job Work.

Answer:

E-way bill is required to be generated while sending
goods for Job Work. There is no need to raise invoice
but a delivery challan containing all the details of the
goods value, tax involved (not payable) shall be raised.
For your easy reference the procedures to be followed
up during Job Work is furnished below.

1. Principal shall send the goods for job work under
the cover of Job Work Delivery Challan.

2. Delivery Challan may be prepared in triplicate, of
which two copies may be sent to job worker along
with goods.

3. The job worker after completion of job work shall
return one copy of the Delivery Challan along with
his job work invoice while sending back the goods to
principal.

4. In case of job worker sends back the goods in
piecemeal, he shall raise a fresh Delivery Challan for
the goods that are being transported along with the
copy of challan issued by the principal.

5. E-way bill must be generated by the person who
causes movement of goods which means if Principal
takes delivery, he has to generate e-way bill with
Delivery Challan.

GST HEALER 22