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Insight of Documentation under GST - (Special Reporting in GSTR 1)

By CA Sagar Bhavsar & Mr. Mohit Kalani

Sandesh Mundra & Associates

 

 

It may be noted that in the GSTR 1 return, following declarations has to be filed by the supplier & has to maintained a consecutive series of all such documents :-

 

Nature of document

From

To

Total Number

Cancelled

Net Issued

1

Invoices for outward supply

 

 

 

 

 

2

Invoices for inward supply from

unregistered person

 

 

 

 

 

3

Revised Invoice

 

 

 

 

 

4

Debit Note

 

 

 

 

 

5

Credit Note

 

 

 

 

 

6

Receipt voucher

 

 

 

 

 

7

Payment Voucher

 

 

 

 

 

8

Refund voucher

 

 

 

 

 

9

Delivery Challan for job work

 

 

 

 

 

10

Delivery Challan for supply on approval

 

 

 

 

 

11

Delivery Challan in case of liquid gas

 

 

 

 

 

12

Delivery Challan in cases other than by way of supply (excluding at S no. 9 to 11)

 

 

 

 

 

 

  1.  Invoices for outward supply

Tax Invoices relating to Outward Supplies needs to be generated in a serial number as per the Invoice rules and as per the requirement of Outward Supply returns (GSTR – 1). Different series within a state can be maintained by a client for a particular project. For every registration, there can be the same running series or altogether a different series. Outward supplies tax Invoices should be in a sequential order for all type of supplies viz Intrastate. Interstate, Branch Transfers, Export, Unregistered Person Supply, Zero Rated Supply, Deemed Export Supply.

Moreover if on account if any error in a particular Invoice raised earlier, cancellation of that invoice would take place and the next sequential invoice would be raised.

The particulars as required for raising a tax invoice are :

(a) name, address and GSTIN of the supplier;

(b) a consecutive serial number not exceeding sixteen characters, in one or multiple series, containing alphabets or numerals or special characters hyphen or dash and slash symbolized as “-” and “/” respectively, and any combination thereof, unique for a financial year;

(c) date of its issue;

(d) name, address and GSTIN or UIN, if registered, of the recipient;

(e) name and address of the recipient and the address of delivery, along with the name of State and its code, if such recipient is un-registered and where the value of taxable supply is fifty thousand rupees or more;

(f) HSN code of goods or Accounting Code of services;

(g) description of goods or services;

(h) quantity in case of goods and unit or Unique Quantity Code thereof;

(i) total value of supply of goods or services or both;

(j) taxable value of supply of goods or services or both taking into account discount or

abatement, if any;

(k) rate of tax (central tax, State tax, integrated tax, Union territory tax or cess);

(l) amount of tax charged in respect of taxable goods or services (central tax, State tax,

integrated tax, Union territory tax or cess);

(m) place of supply along with the name of State, in case of a supply in the course of inter-State trade or commerce;

(n) address of delivery where the same is different from the place of supply;

(o) whether the tax is payable on reverse charge basis; and

(p) signature or digital signature of the supplier or his authorized representative:

  1. Invoices for inward supply from unregistered person

A separate series maintenance is advisable for RCM transactions for ease of records. Also, in these cases, consolidated invoice on a monthly basis for each supplier can be issued. It should be noted that Interstate transactions are covered under forwarding charge. The particulars of Invoices for reverse charge cases would be same as sr.no.1

  1. Revised Invoice

Revised Invoice needs to be issued by registered person who has been granted registration with effect from a date earlier than the date of issuance of certificate of registration to him, may issue revised tax invoices in respect of taxable supplies effected during the period starting from the effective date of registration till the date of issuance of certificate of registration.

The particulars as required are:

(a) the word “Revised Invoice”, wherever aplicable, indicated prominently;

(b) name, address and GSTIN of the supplier;

(c) nature of the document;

(d) a consecutive serial number not exceeding sixteen characters, in one or multiple series, containing alphabets or numerals or special characters -hyphen or dash and slash symbolized as “-” and “/”respectively, and any combination thereof, unique for a financial year;

(e) date of issue of the document;

(f) name, address, and GSTIN or UIN, if registered, of the recipient;

(g) name and address of the recipient and the address of delivery, along with the name of State and its code, if such recipient is unregistered;

(h) serial number and date of the corresponding tax invoice or, as the case may be, bill of supply;

(i) the value of taxable supply of goods or services, the rate of tax and the amount of the tax credited or, as the case may be, debited to the recipient; and

(j) signature or digital signature of the supplier or his authorized representative:

 

  1. Debit Note

Where a tax invoice has been issued for supply of any goods/services and the taxable value or tax charged in that tax invoice is found to be less than the taxable value or tax payable in respect of such supply, the registered person, who has supplied such goods or services or both, shall issue to the recipient a debit note containing additional particulars like

(i)  Serial number and date of the corresponding tax invoice or as the case may be bill of supply

(ii) The value of taxable supply of goods/services debited to the recipient.

The details of such debit notes shall be declared in the respective return of the month in which such debit note is issued. Moreover, if there is any further change in the debit note issued earlier then it has to be supported further by a fresh debit note.

The particulars for debit note are :

(a) name, address and GSTIN of the supplier;

(b) nature of the document;

(c) a consecutive serial number not exceeding sixteen characters, in one or multiple series, containing alphabets or numerals or special characters -hyphen or dash and slash symbolised as “-” and “/”respectively,, and any combination thereof, unique for a financial year;

(d) date of issue of the document;

(e) name, address and GSTIN or UIN, if registered, of the recipient;

(f) name and address of the recipient and the address of delivery, along with the name of State and its code, if such recipient is un-registered;

(g) serial number and date of the corresponding tax invoice or, as the case may be, bill of supply;

(h) value of taxable supply of goods or services, rate of tax and the amount of the tax credited or, as the case may be, debited to the recipient; and

(i) signature or digital signature of the supplier or his authorized representative:

  1. Credit Note

Where a tax invoice has been issued for supply of any goods or services or both and the taxable value or tax charged in that tax invoice is found to exceed the taxable value or tax payable in respect of such supply, or where the goods supplied are returned by the recipient, or where goods or services or both supplied are found to be deficient, the registered person, who has supplied such goods or services or both, may issue to the recipient a credit note containing additional particulars.

Any registered person issues a credit note in relation to a supply of goods or services or both shall declare the details of such credit note in the return for the month during which such credit note has been issued but not later than September following the end of the financial year in which such supply was made, or the date of furnishing of the relevant annual return, whichever is earlier.

The particulars for credit note are :

(a) name, address and GSTIN of the supplier;

(b) nature of the document;

(c) a consecutive serial number not exceeding sixteen characters, in one or multiple series, containing alphabets or numerals or special characters -hyphen or dash and slash symbolised as “-” and “/”respectively,, and any combination thereof, unique for a financial year;

(d) date of issue of the document;

(e) name, address and GSTIN or UIN, if registered, of the recipient;

(f) name and address of the recipient and the address of delivery, along with the name of State and its code, if such recipient is un-registered;

(g) serial number and date of the corresponding tax invoice or, as the case may be, bill of supply;

(h) value of taxable supply of goods or services, rate of tax and the amount of the tax credited or, as the case may be, debited to the recipient; and

(i) signature or digital (signature of the supplier or his authorized representative:)

  1. Receipt voucher

On receipt of advance payment with respect to any supply of goods or services or both, issue a receipt voucher or any other document, containing such particulars as contained in a tax invoice, evidencing receipt of such payment.

Subsequently when no supply is made and no tax invoice is issued in pursuance thereof, the said registered person may issue to the person who had made the payment, a refund voucher against such payment.

Moreover, in case where advance is received and the tax is to be paid on a reverse charge basis, a separate series maintenance is required.

In case if at the time of taking any advance receipt,

(i)  The rate of tax is not determinable, the tax shall be paid at the rate of 18%.

(ii) The nature of supply is not determinable, the same shall be treated as Inter-state Supply.

The particulars for receipt voucher are:

(a) name, address and GSTIN of the supplier;

(b) a consecutive serial number not exceeding sixteen characters, in one or multiple series, containing alphabets or numerals or special characters -hyphen or dash and slash symbolised as “-” and “/”respectively , and any combination thereof, unique for a financial year

(c) date of its issue;

(d) name, address and GSTIN or UIN, if registered, of the recipient;

(e) description of goods or services;

(f) amount of advance taken;

(g) rate of tax (central tax, State tax, integrated tax, Union territory tax or cess);

(h) amount of tax charged in respect of taxable goods or services (central tax, State tax,

integrated tax, Union territory tax or cess);

(i) place of supply along with the name of State and its code, in case of a supply in the course of inter-State trade or commerce;

(j) whether the tax is payable on reverse charge basis; and

(k) signature or digital signature of the supplier or his authorized representative

  1. Payment Voucher

A registered person who is liable to pay tax on a reverse charge basis either from unregistered person or otherwise (compulsory reverse charge u/s 9(3) or as importer of services) shall issue a payment voucher at the time of making the payment to the supplier.

These mandates generation of vouchers in a single or multiple series and should contain details such as :

(a) name, address and GSTIN of the supplier if registered;

(b) a consecutive serial number not exceeding sixteen characters, in one or multiple series, containing alphabets or numerals or special characters -hyphen or dash and slash

symbolised as “-” and “/”respectively, and any combination thereof, unique for a financial year

(c) date of its issue;

(d) name, address and GSTIN of the recipient;

(e) description of goods or services;

(f) amount paid;

(g) rate of tax (central tax, State tax, integrated tax, Union territory tax or cess);

(h) amount of tax payable in respect of taxable goods or services (central tax, State tax,

integrated tax, Union territory tax or cess);

(i) place of supply along with the name of State and its code, in case of a supply in the course of inter-State trade or commerce; and

(j) signature or digital signature of the supplier or his authorized representative.

  1. Refund voucher

Once an advance is received and subsequently where no supply is made and no tax invoice is issued in pursuance thereof, the said registered person may issue to the person who had made the payment, a refund voucher against such payment.

The particulars of these refund voucher are:

(a) name, address and GSTIN of the supplier;

(b) a consecutive serial number not exceeding sixteen characters, in one or multiple series, containing alphabets or numerals or special characters -hyphen or dash and slash symbolised as “-” and “/”respectively , and any combination thereof, unique for a financial year

(c) date of its issue;

(d) name, address and GSTIN or UIN, if registered, of the recipient;

(e) number and date of receipt voucher issued in accordance with provisions of sub- rule 5;

(f) description of goods or services in respect of which refund is made;

(g) amount of refund made;

(h) rate of tax (central tax, State tax, integrated tax, Union territory tax or cess);

(i) amount of tax paid in respect of such goods or services (central tax, State tax, integrated tax, Union territory tax or cess);

(j) whether the tax is payable on reverse charge basis; and

(k) signature or digital signature of the supplier or his authorized representative.

9.     Delivery Challan in case of Transportation of goods for job work OR Delivery Challan for transportation of goods for supply on approval OR Delivery Challan in case of supply of liquid gas OR Delivery Challan in cases other than by way of supply (excluding above three).

It is advisable to maintain separate Delivery challans for :-

  1. Making an outward supply for sales
  2. Making an outward supply for jobwork
  3. Making an outward supply for intrastate movements not taxed under GST say from one site to another within the state.

The consigner may issue a delivery challan, serially numbered not exceeding sixteen characters, in one or multiple series, in lieu of invoice at the time of removal of goods for transportation, containing the following details: 

(i) date and number of the delivery challan,

(ii) name, address and GSTIN of the consigner, if registered,

(iii) name, address and GSTIN or UIN of the consignee, if registered,

(iv) HSN code and description of goods,

(v) quantity (provisional, where the exact quantity being supplied is not known),

(vi) taxable value,

(vii) tax rate and tax amount – central tax, State tax, integrated tax, Union territory tax or cess, where the transportation is for supply to the consignee,

(viii) place of supply, in case of inter-State movement, and

(ix) signature.

The delivery challan shall be prepared in triplicate, in case of supply of goods, in the following manner:–

(a) the original copy being marked as ORIGINAL FOR CONSIGNEE;

(b) the duplicate copy being marked as DUPLICATE FOR TRANSPORTER; and

(c) the triplicate copy being marked as TRIPLICATE FOR CONSIGNOR.

Where goods are being transported on a delivery challan in lieu of invoice, the same shall be declared in FORM [WAYBILL].Where the goods being transported are for the purpose of supply to the recipient but the tax invoice could not be issued at the time of removal of goods for the purpose of supply, the supplier shall issue a tax invoice after delivery of goods.

Where the goods are being transported in a semi knocked down or completely knocked down condition,

(a) the supplier shall issue the complete invoice before dispatch of the first consignment;

(b) the supplier shall issue a delivery challan for each of the subsequent consignments, giving reference of the invoice;

(c) each consignment shall be accompanied by copies of the corresponding delivery challan along with a duly certified copy of the invoice; and

(d) the original copy of the invoice shall be sent along with the last consignment.

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2017-VIL-389-BOM

PAINTERIOR (INDIA) Vs THE STATE OF MAHARASHTRA

Maharashtra VAT Act - Section 42(3) - Whether a work contract for repairs or reconstruction of building is a ‘Construction contract’ as contemplated by Section 42(3) of the MVAT Act – contract for substantial repairing of the buildings - The Appellants contention that the terms ‘construction’ includes ‘Repairs and Reconstruction’ – benefit of Notification No VAT.1506/CR-134/Taxation-1 – scope of the term ‘Building'

HELD - the 'Works Contract' in question, is a 'Construction Contract'. The contract for construction of buildings includes the repairing, reconstruction and maintenance of building etc. - there is no distinguishing features and definitions and/or intention reflected in any provisions about the nature of buildings, whether it is new building or old building.

The word “new” or “old” as observed in the impugned order as not specifically defined or explained anywhere, cannot be added by giving such restrictive interpretation to the provisions and the notification - The term “Building” cannot be restricted only to the new building specifically when, as per the practice and the explanation so given in similarly placed provisions under the WC Act and the notification explaining the term - the repairing and/or reconstruction, if part of Construction Contract, which in normal parlance and/or understanding, cannot be read to mean that the construction contract refers under these provisions only for the new building. It is unacceptable and there is no rational and/or justification for want of specific provisions of such interpretation

The terms “Works Contract” of repair and reconstruction and “Contract of Construction” of building, include repairs and reconstruction, have been in existence for more than 15 years. There is no contra material to dislodge the same - the impugned order is set aside and assessee appeal is allowed

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Posted by on in Goods and Service Tax

Glimpse at provisional ITC under GST

Fulfillment of Input Tax Credit under GST – Conditions to claim is one of the most critical activity for every business to settle its tax liability. ITC being the backbone of GST and a major matter of concern for the registered persons, conditions for eligibility to ITC and eligible ITC have been prescribed which, in the majority are in line with pre- GST regime.

In this article, we take a look at the provisions in the GST law for taking ITC on a provisional basis.

  • Section 16 of the CGST Act lays down the provisions on eligibility and conditions for taking input tax credit. As per sub-section (1), every registered person shall be entitled to take credit of input tax charged on any supply to him which isused or intended to be used in the course or furtherance of his business and the said amount shall be credited to the electronic credit ledger of such person.
  • ITC of any input tax cannot be taken by a recipient in respect of any supply of goods or services to him unless, the tax charged in respect of such supply has been actually paid to the Government by the supplier, either in cash or through utilization of input tax credit. But Section 41 provides for availing of ITC on the provisional basis.
  • According to Section 41, every registered person shall be entitled to take self-assessed Input Tax Credit, in his return and such amount shall be credited on a provisional basis to his electronic credit ledger.
  • As per Section 42(3), if the ITC claimed by the recipient is more than the tax declared by the supplier, or the supply is not declared by the supplier in his returns, the discrepancy shall be communicated to both persons. Section 42(5) provides that if the discrepancy communicated is not rectified by the supplier, the excess amount taken as ITC will be added to the output liability of the recipient.
  • Furthermore, If the recipient fails to pay to the supplier, the amount of consideration (including tax) within a period of 180 days from the date of issue of invoice by the supplier, an amount equal to the input tax credit availed by the recipient shall be added to his output tax liability, along with interest. As and when the consideration is paid to the supplier, the recipient will be entitled to avail of the credit of input tax on payment made by him of the amount towards the value of supply and tax payable.
  • Rule 36 of the CGST Rules, 2017 prescribes the documents on the basis of which Input Tax Credit can be claimed. The ITC shall be availed by a registered person, on the basis of any of the following documents, namely,-

                   (a) an invoice issued by the supplier.

                   (b) an invoice issued in respect of input supply covered under RCM, subject to the payment of tax.

                   (c) a debit note issued by a supplier.

                   (d) a bill of entry or any similar document for the assessment of IGST on imports.

Therefore, ITC of input services covered under Reverse Charge Mechanism, cannot be taken on a provisional basis. It can be claimed only after making payment of tax. Further, ITC cannot be availed where any tax has been paid in pursuance of any order where any demand has been confirmed on account of any fraud, willful misstatement or suppression of facts.

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  • In the pre-GST era, getting a Waybill issued was a nightmare. The Waybill is a document necessary for the movement of goods from one place to another. In GST regime the waybill is known as E-Waybill which need to be issued by the person causing the movement of goods. The E-Way Bill is mandatory in case the value of goods being supplied is equal to or more than Rs. 50,000/-. It can be generated electronically at the common portal of GST Network (GSTN).
  • However, in former meetings of GST Council headed by the Finance Minister, the consensus on E-Way bill draft rules was not met between the Center and representatives of all States and States were forced to continue their own system in GST regime.
  • Below is the status of Way Bills across all states:

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2017-VIL-380-MAD

SHV ENERGY PRIVATE LIMITED Vs THE STATE OF TAMIL NADU

Tamil Nadu Value Added Tax Act, 2006 - The petitioner provided the service of terminalling and storage of LPG to its customers – demand of VAT under residuary entry on terminalling services provided to BPCL -service/storage facilities

whether petitioner having discharged the service tax liability can be directed to pay VAT for the same transaction

HELD - the respondent has failed to address the important aspect raised by the petitioner by contending that they having discharged the service tax liability, they cannot be directed to pay VAT for the same transaction. This important aspect should have been dealt with by the third respondent while completing the assessment

The legal principle should be taken note of by the respondent, that is to say, that except specific contracts so provided under Article 366(29A), no other contracts can be artificially severed to tax the sale element with respect to the goods as compromised in such composite contracts.

The non-exclusivity of the agreement between the petitioner and the BPCL is also a relevant factor which the third respondent has not considered – the finding rendered by the respondent that installation is not a fixed asset like land/building/space appears to be an incorrect finding -this Court is of the considered view that the assessment under the said head requires to be re-done taking note of the legal position, circular issue by the Central Board, factual matrix and the non-exclusivity of the agreement between the petitioner and the BPCL and that the petitioner cannot be made to suffer by two levies, namely, sales tax and service tax - the impugned assessment under the head of terminalling service provided to BPCL is set aside - the matter is remanded to the respondent to re-do the assessment - the writ petition is allowed

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  • HC holds that MS structurals, cement, iron and steel supporting ‘plant & machinery’ that is used to manufacture final product viz. sugar & molasses, are an integral part thereof and accordingly, CENVAT credit is available thereon, not only as ‘capital goods’ but also as ‘inputs’ under CENVAT Credit Rules, 2004 (CCR);
  • Referring to SC ratio in Saraswathi Sugar Mills Ltd. and Rajasthan Spinning and Weaving Mills Ltd., HC states that as long as it is shown that "component" and/or "accessory" is an integral part of capital goods, which in turn, fall within scope and ambit of Rule 2(a)(A)(i) of CCR, they would also qualify as ‘capital goods’; Amendment in Explanation 2 to Rule 2(k) excluding structural, cement, angle etc. from ‘input’ definition is not clarificatory and would operate prospectively w.e.f. July 7, 2009, holds HC while referring to Gujarat HC decision in Mundra Ports & Special Economic Zone Ltd. which disagreed with view taken by CESTAT in Vandana Global Ltd;
  • Moreover, observes that Finance Minister’s Speech cannot control meaning of words used in Notification No. 16/2009 and would not help Revenue’s cause as it uses a generic expression "to clarify", which when read with first part stating that it would have effect "immediately", only fortifies view that amendment was configured to operate from date of its publication and not retrospectively;
  • Consequently holds that, “whether the "user test" is applied, or the test that they are the integral part of the capital goods is applied, the Assessees, in these cases, should get the benefit of CENVAT Credit, as they fall within the scope and ambit of both Rule 2(a)(A) and 2k”  : Madras HC
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  • Karnataka Govt. issues clarification on deduction of tax at source in respect of works contract executed upto June 30, for which payments are required to be made from July 1 onwards;
  • Since sale of goods shall be deemed to have taken place at the time of transfer of title or possession or incorporation thereof in the course of execution of any works contract, tax is liable to be deducted at 4% or an amount equivalent to tax payable by dealer as may be permitted by prescribed authority under Karnataka VAT Act;
  • As regards works contract executed from July 1 onwards, SGST at 1% and CGST at 1% would have to be deducted from the payments made or credited to the supplier of taxable goods/services where the total value of the contract exceeds Rs. 2.50 lakhs;
  • However, provisions relating to TDS under GST law have been put on hold for the time being: Karnataka Govt. Circular
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2017-VIL-500-CESTAT-CHE-ST

M/s SHAPOORJI PALLONJI INFRASTRUCTURE CAPITAL COMPANY LIMITED Vs COMMISSIONER OF SERVICE TAX, CHENNAI

Service Tax - The appellants engaged in operation of power plant - demand of service tax on services provided for maintenance and repair of power plant, on the Major Maintenance Reserve and on activities of operation of power plant to produce electricity - appellants had split the ‘Operation Fee’ received by them as ‘Operation Charges’ and ‘maintenance charges’ in the ratio 55% and 45% respectivelywhether the appellants are liable to pay service tax on the activities of maintenance and repair of power plant as well as operation charges and the MMR deposit

whether the appellants are liable to pay service tax on the activities of maintenance and repair of power plant as well as operation charges and the MMR deposit

HELD – for the purposes of the service tax law, deduction of cost of materials and consumables can be permitted only if there is a sale involved and there being no sale involved in the entire exercise, appellant has necessarily to discharge tax liability on the entire gross value of the maintenance or repair services on the full amount demarcated by them as maintenance or repair service, being 45% of the total amount paid to them

No infirmity in the confirmation of tax liability on this score in the various impugned orders.Further, when the appellants themselves have vivisected the contract by apportioning 45% towards maintenance charges and 55% as operation fee, the contention raised by them that it is a composite contract is only to be brushed aside - the demand of service tax on operation charges is not sustainable

The Major Maintenance Reserve can by no stretch of imagination be considered as a part of the maintenance or repair fees paid or payable to the appellants. Therefore, they cannot be considered as taxable value under this head - there cannot be any service tax liability on the said MMR account - the penalties imposed in the orders impugned are set aside - since the appellants did not disclose the entire gross value of taxable services in the ST-3 returns and the returns reflected the value only after deduction of cost of materials, the notice issued invoking extended period is right and proper – assessee appeal is partly allowed

Further, when the appellants themselves have vivisected the contract by apportioning 45% towards maintenance charges and 55% as operation fee, the contention raised by them that it is a composite contract is only to be brushed aside - the demand of service tax on operation charges is not sustainable - the Major Maintenance Reserve can by no stretch of imagination be considered as a part of the maintenance or repair fees paid or payable to the appellants.Therefore, they cannot be considered as taxable value under this head - there cannot be any service tax liability on the said MMR account - the penalties imposed in the orders impugned are set aside - since the appellants did not disclose the entire gross value of taxable services in the ST-3 returns and the returns reflected the value only after deduction of cost of materials, the notice issued invoking extended period is right and proper – assessee appeal is partly allowed

Therefore, they cannot be considered as taxable value under this head - there cannot be any service tax liability on the said MMR account - the penalties imposed in the orders impugned are set aside - since the appellants did not disclose the entire gross value of taxable services in the ST-3 returns and the returns reflected the value only after deduction of cost of materials, the notice issued invoking extended period is right and proper – assessee appeal is partly allowed

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SC grants special leave to Siemens Ltd to appeal against Telangana & AP HC judgment that ruled on inter-state supply of goods under lumpsum turnkey projects; Issue before HC pertained to interpretation of what would constitute 'in-transit sale', 'inter-state works contract' and 'intra-state works contract'; Assessee challenges the judgment on ground that HC exceeded its jurisdiction by expressing opinion on valuation of sales made from outside the State of Andhra Pradesh; While granting leave, SC directs that assessment orders passed in other States will not be influenced by observations made in said judgment

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Posted by on in VAT

2017-VIL-294-KER

M/s LARSEN & TOUBRO LTD Vs THE DEPUTY COMMISSIONER, COMMERCIAL TAXES

Kerala General Sales Tax Act, 1963 – Section 45A – penalty for suppression of taxable turnover – Work Contract - inter-state sale under section 3 (a) of the CST Act - deemed sale in terms of Explanation 3A of Section 2(xxi) of the KGST Act - Petitioner company entered into a contract with Cochin Refineries Ltd for execution of the work for DHDS/Hydrogen plant and other utilities - work involving transactions by way of importing hightech equipments, inter-state purchases etc. – HELD - Though it is stated that the terms of the contract clearly envisages that the goods are brought to the State by interstate movement, it gets terminated at the work site resulting in completion of interstate sale envisaged under the CST Act. The petitioner however would submit that only a few terms of contract had been considered by the authorities whereas the contract contains other terms and conditions which are relevant for a proper adjudication in the matter. Further, this is a case in which penalty had been imposed on the assessee under Section 45A of the KGST Act. Penalty can be imposed only if there is deliberate suppression of turnover - the question to be considered is whether there was deliberate contumacious conduct on the part of the assessee in declaring the goods as exigible for tax under the works contract. Such an aspect of the matter had not been considered by the authorities – the impugned order is set aside and the matter is remitted back to the respondent for fresh consideration – assessee petition allowed by remand

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