CBEC has also laid down guidelines to file SLP vide Instructions dated 18-07-2016.
Registered Brand Name: Forego actionable claim by filing affidavit and printing “give up” declaration on unit container to avail NIL Rate GST
Following items under registered brand name and put in unit container are taxable @ 5%
- Tender Coconut Water
- Organic Manure
- Chenna or Paneer
- Natural Honey
- Wheat and Meslin
- Wheat and Meslin flour
- Rye
- Barley
- Oats
- Maize
- Rice
- Grain Sorghum
- Buck Wheat
- Cereal Flours
- Cereal groats, meal and pellets
- Flour, of potatoes
- Flour, of the dried leguminous vegetables
If the above items are put in unit container but not supplied in registered brand name, then tax rate is NIL. Also even if the above items are in registered brand name but not put in unit container still the tax rate is NIL. Hence for above items being exigible to tax, they should be both in registered brand name and put in unit container.
The phrase “unit container” means a package, whether large or small (for example, tin, can, box, jar, bottle, bag, or carton, drum, barrel, or canister) designed to hold a pre- determined quantity or number, which is indicated on such package[Explanation (i) of 1/2017-CTR]
Comments: Hence if quantity held in package is not indicated on the package, still tax rate shall be NIL.
The phrase “registered brand name” means brand name or trade name, that is to say, a name or a mark, such as symbol, monogram, label, signature or invented word or writing which is used in relation to such specified goods for the purpose of indicating, or so as to indicate a connection in the course of trade between such specified goods and some person using such name or mark with or without any indication of the identity of that person, and which is registered under the Trade Marks Act, 1999 [Explanation (ii) of 1/2017-CTR]
Comments:
- Indication of identity also gets covered
- Name of mark registered in foreign country is not covered above
- Name or mark registered under Copy rights Act is not covered.
GST Council Decision dated 09-09-2017
The issue of avoidance of 5% GST on pulses, cereals and flours, put up in unit container and bearing a registered brand name, was also discussed by the GST Council. After detailed deliberations, the Council recommended that the following amendments may be made to the existing Notifications, so as to provide that:
1) A brand registered as on 15.05.2017 shall be deemed to be a registered brand for the purposes of levy of 5% GST, irrespective of whether or not such brand is subsequently deregistered.
2) A brand registered as on 15.05.2017 under the Copyright Act, 1957 shall also be treated as a registered brand for the purposes of levy of 5% GST.
3) A brand registered as on 15.05.2017 under any law for the time being in force in any other country shall also be deemed to be a registered brand for the purposes of levy of 5% GST. [Hence brands registered in foreign country shall also be covered under registered brand name]
4) A mark or name in respect of which actionable claim is available shall be deemed to be a registered brand name for the purposes of levy of 5% GST.
Press Release dated 20-09-2017
– Notifications for giving effect to above are expected to be issued on 22nd September 2017
– 5% rate against name or mark shall not apply if the person concerned voluntarily foregoes any actionable claim or enforceable right on such brand name, subject to the conditions that he:
a) files an affidavit to the effect that he is voluntarily foregoing his actionable claim or enforceable right on such brand name with the jurisdictional Commissioner of Central Tax or State Tax, or the jurisdictional officer of Union Territory Tax, as the case may be, and
b) prints in indelible ink, both in English and local language on each such unit container, that in respect of brand name printed on the unit containers he has voluntarily foregone his actionable claim or enforceable right.
Assessment order being protective assessment order, penalty could not be initiated: Gujrat High Court 23-06-2014
Unless and until substantive assessment is made and final assessment order is passed in case of assessee making addition in hands of assessee, initiation of penalty proceedings is not permissible; there cannot be initiation of penalty proceedings with respect to protective assessment order
Bhailal Manilal Patel [2014] 49 taxmann.com 539 (Gujarat) JUNE 23, 2014
CBEC orders for extension of Revised TRAN-1 under Rule 120A. Original Tran-1 date u/R 117 remains unaltered at 28-09-2017 [Order 2/2017 dt 18-09-2017]
GST on Passenger Transportation by Road
Travel by Stage /Contract Carriage/Motor Cab/Radio Taxi
GST on Travel By Air
Economy Class[ Sl No. 8(iii) of 11/2017-CTR]
GST on Travel By Rail
[Sl No. 8(i) of NN 11/2017-CTR]
Accommodation Services
| 1 | Services by way of renting of residential dwelling for use as residence is NIL rated as per Sl No. 12 of NN 12/2017 |
| 2 | As per Sl No. 13(b) of NN 12/2017
Services by a person by way of- (b) renting of precincts of a religious place meant for general public, owned or managed by Ø an entity registered as a charitable or religious trust under section 12AA of the Income-tax Act, 1961 (hereinafter referred to as the Income-tax Act) or Ø a trust or an institution registered under sub clause (v) of clause (23C) of section 10 of the Income-tax Act or Ø a body or an authority covered under clause (23BBA) of section 10 of the said Income-tax Act is NIL rated
Provided that nothing contained in entry (b) of this exemption shall apply to,- (i) renting of rooms where charges are one thousand rupees or more per day; (ii) renting of premises, community halls, kalyanmandapam or open area, and the like where charges are ten thousand rupees or more per day; (iii) renting of shops or other spaces for business or commerce where charges are ten thousand rupees or more per month |
| 3 | Meaning of declared tariff [In Sl No. 7(ii),(vi),(vii) of NN 11/2017 and Para 2(w) of NN 12/2017
“declared tariff” includes Ø charges for all amenities provided in the unit of accommodation (given on rent for stay) Ø like furniture, air conditioner, refrigerators or any other amenities, Ø but without excluding any discount offered on the published charges for such unit.
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| 4 | Hotel with declared tariff < Rs. 1000/- per day :[Sl No. 14 of NN 12/2017]
Ø Services by a hotel, inn, guest house, club or campsite, by whatever name called, Ø for residential or lodging purposes, Ø having declared tariff of a unit of accommodation Ø below one thousand rupees per day or equivalent.
Is exempt as per Sl. No. 14 of Notificaiton 12/2017-CTR
Service tax was also exempt. |
| 5 | Hotel with declared tariff => Rs. 1000/- per day but <Rs. 2500:Heading 9963[Sl. No. 7(ii) of N/N 11/2017-CTR]
Ø Accommodation in hotels, inns, guest houses, clubs, campsites or other commercial places Ø meant for residential or lodging purposes Ø having declared tariff of a unit of accommodation of one thousand rupees and above but less than two thousand five hundred rupees per unit per day or equivalent.
GST Rate is 12%
In service tax rate was 60% of 15%= 9% as per NN 26/2012
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| 6 | Hotel with declared tariff => Rs. 2500/- per day but <Rs. 7500:Heading 9963[Sl. No. 7(vi) of N/N 11/2017-CTR]
Ø Accommodation in hotels, inns, guest houses, clubs, campsites or other commercial places Ø meant for residential or lodging purposes Ø having declared tariff of a unit of accommodation of two thousand five hundred rupees and above but less than seven thousand five hundred rupees per unit per day or equivalent.
GST Rate is 18% In service tax rate was 60% of 15%= 9% as per NN 26/2012
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| 7 | Hotel with declared tariff => Rs. 7500/- per day:Heading 9963[Sl. No. 7(viii) of N/N 11/2017-CTR]
Ø Accommodation in hotels including five star hotels, inns, guest houses, clubs, campsites or other commercial places Ø meant for residential or lodging purposes Ø having declared tariff of a unit of accommodation of seven thousand and five hundred rupees and above per unit per day or equivalent.
GST Rate is 28% |
| 8 | Accommodation, food and beverage services other than (i), (ii), (iii), (iv), (v), (vi), (vii) and (viii) above is taxable @ 18% as per Sl. No. 7(ix) of N/N 11/2017-CTR |
Supply of Food and Beverages
| 1. | Treated Supply of Service- Schedule II
The following composite supplies shall be treated as a supply of services, namely:— (b) supply, by way of or as part of any service or in any other manner whatsoever, of goods, being food or any other article for human consumption or any drink (other than alcoholic liquor for human consumption), where such supply or service is for cash, deferred payment or other valuable consideration.
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| 2. | Composition Scheme
Ø Notwithstanding anything to the contrary contained in this Act but subject to Ø the provisions of sub-sections (3) and (4) of section 9, a registered person, whose aggregate Ø turnover in the preceding financial year did not exceed fifty lakh rupees, may opt to pay, in Ø lieu of the tax payable by him, an amount calculated at such rate as may be prescribed, but Ø not exceeding,–– Ø (b) two and a half per cent. of the turnover in State or turnover in Union territory in case of persons engaged in making supplies referred to in clause (b) of paragraph 6 of Schedule II, and subject to such conditions and restrictions as may be prescribed:
(2) The registered person shall be eligible to opt under sub-section (1), if:— Ø (a) he is not engaged in the supply of services other than supplies referred to in clause (b) of paragraph 6 of Schedule II; Ø (b) he is not engaged in making any supply of goods which are not leviable to tax under this Act; Ø (c) he is not engaged in making any inter-State outward supplies of goods; Ø (d) he is not engaged in making any supply of goods through an electronic commerce operator who is required to collect tax at source under section 52; and Ø (e) he is not a manufacturer of such goods as may be notified by the Government on the recommendations of the Council:
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| 3. | Non AC Non Liquor Restuarants- 12% (9963) [Sl. No. 7(i) of N/N 11/2017-CTR]
Ø Supply, Ø by way of or as part of any service or in any other manner whatsoever, Ø of goods, being food or any other article for human consumption or drink, Ø where such supply or service is for cash, deferred payment or other valuable consideration, Ø provided by a restaurant, eating joint including mess, canteen, Ø neither having the facility of air-conditioning or central air-heating in any part of the establishment, at any time during the year nor having licence or permit or by whatever name called to serve alcoholic liquor for human consumption. § GST Rate is 12%.
Under Service tax law, there was NIL tax. State Vat on supply of food and beverages was however applicable
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| 4. | Liquor License/Permitted Restaurants [Sl. No. 7(iii) of N/N 11/2017-CTR]
Supply, by way of or as part of any service or in any other manner whatsoever, of goods, being food or any other article for human consumption or any drink, where such supply or service is for cash, deferred payment or other valuable consideration, provided by a restaurant, eating joint including mess, canteen, having licence or permit or by whatever name called to serve alcoholic liquor for human consumption. @ 18%
Under Service tax law, there was NIL tax. State Vat on supply of food and beverages was however applicable
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| 5. | AC Restuarants [Sl. No. 7(iv) of N/N 11/2017-CTR]
Supply, by way of or as part of any service or in any other manner whatsoever, of goods, being food or any other article for human consumption or any drink, where such supply or service is for cash, deferred payment or other valuable consideration, provided by a restaurant, eating joint including mess, canteen, having the facility of air-conditioning or central air-heating in any part of the establishment, at any time during the year. @ 18%
Service tax rate was 40% of 15% i.e. 6%. State Vat on supply of food and beverages was however applicable
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| 6. | Outdoor catering [Sl. No. 7(v) of N/N 11/2017-CTR]
Ø Supply, Ø by way of or as part of any service or in any other manner whatsoever Ø in outdoor catering Ø wherein goods, being food or any other article for human consumption or any drink Ø (whether or not alcoholic liquor for human consumption), as a part of such outdoor catering Ø and such supply or service is for cash, deferred payment or other valuable consideration.
@ 18% Service tax rate was 60% of 15%= 9%. State Vat on supply of food and beverages was however applicable
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| 7. | Food along with Renting of Premises [Sl. No. 7(vii) of N/N 11/2017-CTR]
Ø Supply, Ø by way of or as part of any service or in any other manner whatsoever, Ø of goods, Ø including but not limited to food or any other article for human consumption or any drink (whether or not alcoholic liquor for human consumption), Ø where such supply or service is for cash, deferred payment or other valuable consideration, Ø in a premises (including hotel, convention center, club, pandal, shamiana or any other place, specially arranged for organising a function) Ø together with renting of such premises. @ 18%
Service tax rate was 70% of 15%= 10.5%. State Vat on supply of food and beverages was however applicable
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Services of Commission agent under GST
- As per section 2(5) of CGST Act“agent” means a person, including a factor, broker, commission agent, arhatia, del credere agent, an auctioneer or any other mercantile agent, by whatever name called, who carries on the business of supply or receipt of goods or services or both on behalf of another
- Section 6 of Notification 11/2017 deals with Distributive Trade Services
- Heading 9961 deals with Services in wholesale trade and is taxable @ 18%. As per Explanation attached to Services in whole sale trade