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Aggarwal Jain & Associates, 7-C, AD Block, Pitampura, Delhi (2026)

18/08/2019

Vacancy for 2 Article/Intern at Aggarwal Jain and Associates, chartered accountancy firm situated at pitampura,delhi

Interested candidates can mail at [email protected] or call at 9953227437.

Good exposure in taxation and audit.

10/06/2019

Vacancy for Article/Intern at Aggarwal Jain and Associates, chartered accountancy firm situated at pitampura,delhi

Interested candidates can mail at [email protected] or call at 9953227437.

Good exposure in taxation and audit.

17/05/2019

ISSUE FOR CONSIDERATION:- Refund of wrongly paid CGST and SGST - adjustment of the said amount towards IGST

In the case of M/s GIREESH BABU ALAMBADAN VERSUS THE STATE TAX OFFICER, STATE GST DEPARTMENT, COMMISSIONER OF STATE GST, DEPARTMENT OF STATE GST, THIRUVANANTHAPURAM AND UNION OF INDIA, REPRESENTED BY SECRETARY, NEW DELHI, wherein the petitioner has requested to refund the wrongly paid CGST and SGST or shall adjust the said amount towards IGST.

In the aforesaid matter, Kerala High Court has directed that decision shall be taken on the request for refund of CGST and SGST within a period of one week. It is also open for the respondent to consider the request for adjusting the amount towards IGST as well.

19/03/2019

ISSUE FOR CONSIDERATION IN THE CASE OF M/S DREAM RUNNERS FOUNDATION LIMITED (HEREINAFTER REFERRED TO AS " APPELLANT")

1) Whether the conduct of marathon events by the Trust through which donations are raised for charity is an exempted service under GST?
Ans:- The conduct of Marathon event by the Applicant for the participants is a not an exempt supply under CGST/TNGST Act.

2) When the Trust is approved under Sec 12AA of the Income Tax Act 1961 which means that the service of the Trust is charitable in nature, does it not automatically become a charitable activity that is exempted under GST?
Ans:- Only those activities of Applicant, who is a Trust is under Sec 12AA of the Income Tax Act 1961, which fall under the definition of “charitable activities” as per Clause 2(r) of Notification 12/2017-Central Tax (Rate) dated 28th June 2017 and Notification No. II(2)/CTR/532(d-15)/2017 vide G.O. (Ms) No. 73 dated 29.06.2017 are exempt.

3) As the service rendered by the Trust is a charitable activity within the definition of Clause 2(r) of Notification No. 12/2017 -Central Tax (Rate), is registration under GST required?
Ans:- As the Applicant is supplying taxable supply of services such as organizing marathon etc. and has aggregate turnover in a financial year exceeding twenty lakh rupees, the Applicant is required to be registered under CGST/TNGST Act.

4) Are donations received from participants of the marathon event exempted from GST as it is money paid for conduct of a marathon event for raising funds for charity?
Ans:-The money collected from the participants for conduct of the Marathon in the event organized by the Applicant and therefore is not exempted from CGST/SGST.

FACTS OF THE CASE
Applicant is a Trust with the object to organize events for charitable Cause like Marathon, Blood Donation Camp, Organ Donation Camp, Eye Donation Camp, Health Awareness Camp, Etc., and utilize the fund raised for the charitable cause like funding to Non-Governmental Organisations(NGOs), Hospitals, Trust and other Charitable Organizations. They are registered under Section 12AA of the Income Tax Act 1961 and the receipts are exempted under Section 80G of the Income Tax Act. The Applicant is conducting Marathon and the receipts of the event are utilized for conduct of the event and the balance left is donated to the cause for the support of providing prosthetic legs.

In the instant case, the Applicant collects an amount from participants registered to for the marathon, treating them as donations . It is seen from the balance sheet that From these collected amounts, the expenses of paying the registration partner, event management expenses, prize money, expenses for conducting the marathon, are met and some portion of the balance is given as donation for various activities such as donating to Freedom Trust, a NGO who in turn provide prosthetic limbs to the less privileged public in Tamil Nadu apart from direct beneficiaries like Avvai Home, a school for poor and orphans and Olcott Memorial School. The activity in question is the Applicant organizing a Marathon. This is advertised as Dream Runners Marathon where a large number of persons participate. Though the money collected from the participants maybe donated or used for further charitable activities, organizing marathon itself is a separate supply of service by the Applicant for the various participants, individuals or runner groups etc

DISCUSSIONS AND OBSERVATIONS
As per Section 2(31) of CGST Act,

“(31) “consideration” in relation to the supply of goods or services or both includes-

(a) any payment made or to be made, whether in money or otherwise, in respect of in response to, or for the inducement of; the supply of goods or services or both, whether by the recipient or by any other person but shall not include any subsidy given by the Central Government or a State Government;”

The money collected by the Applicant, from the participant in the Marathon is used for the expenses of organizing the Marathon in terms of paying the registration partner, event management charges, prize money, publicity, other organizing expenses such as T-shirts, banners and other related materials etc. as seen in their balance sheets. Therefore, the money collected from the participants is a consideration towards the supply of service of organizing and conducting the marathon for the participant’s conduct of marathon event and the same is liable to GST.

The Applicant has claimed that their activities are exempted under Sl.No. 1 of Notification No. 12/2017-Central Tax (Rate) dated 28th June 2017. The relevant extract of Sl.No. 1 of Notification No. 12/2017 -C.T. (Rate) dated 28th June 2017 and the relevant definitions are extracted below for ease of reference:

Description of Services :-
Services by an entity registered under section 12AA of the Income-tax Act, 1961 (43 of 1961) by way of charitable activities. Nil

2. Definitions. - For the purposes of this notification, unless the context otherwise requires, -

(r) “charitable activities” means activities relating to -

(i) public health by way of,-

(A) care or counseling of

(I) terminally ill persons or persons with severe physical or mental disability;

(II) persons afflicted with HIV or AIDS;

(III) persons addicted to a dependence-forming substance such as narcotics drugs or alcohol; or

(B) public awareness of preventive health, family planning or prevention of HIV infection;

(ii) advancement of religion, spirituality or yoga;

(iii) advancement of educational programmes or skill development relating to,-

(A) abandoned, orphaned or homeless children;

(B) physically or mentally abused and traumatized persons;

(C) prisoners; or

(D) persons over the age of 65 years residing in a rural area;

(iv) preservation of environment including watershed, forests and wildlife;

The Applicant is an entity registered under Section 12AA of Income Tax Act. However, for the purposes of CGST Notification No. 12/2017-C.T.(Rate) dated 28th June 2017 and SGST Notification No. II(2)/CTR/532(d-15)/2017 vide G.O. (Ms) No. 73 dated 29.06.2017, only those activities of such an entity are exempt from GST which qualify under the definition of “charitable activities” given in the notification.

This activity of conduct of Marathon event by the Applicant does not fall under the definition for Charitable activities mentioned under clause 2(r) of Notification 12/2017-Central Tax(Rate) dated 28th June 2017 and Notification No. II(2)/CTR/532(d-15)/2017 vide G.O. (Ms) No. 73 dated 29.06.2017,. Therefore, though the Applicant is an entity registered under Section 12 AA of the Income Tax Act and conducts the Marathon events for raising funds for charitable activities, the exemption under Sl.No. 1 of these notification does not apply to the activity of organizing the marathon by the Applicant.

As per Section 22 of CGST/TNGST Act, every supplier shall be liable to be registered under this Act in the State or Union territory, other than special category States, from where he makes a taxable supply of goods or services or both, if his aggregate turnover in a financial year exceeds twenty lakh rupees. In the instant case, the Applicant’s annual turnover is more than ₹ 20 lakhs and they are providing the taxable supply of organizing marathon events. Hence, they are liable to register under CGST /TNGST Act.

16/03/2019

ISSUE FOR CONSIDERATION IN THE CASE OF M/S GEOJIT FINANCIAL SERVICES LTD. (HEREINAFTER REFERRED TO AS "APPLICANT")

A) Whether computers, laptops etc used by the applicant for providing output service would qualify as inputs for the purpose of availing transitional ITC under Section 140(3) of KSGST Act?
B) If the goods are physically available as closing stock as on 30th June, 2017, can the applicant avail ITC for the VAT paid?

BRIEF FACTS OF CASE

The Appellant is a public limited company having its registered office at Kochi. They are engaged in the activity of providing various retail financial services like stock brooking, share brooking, marketing of initial public offering of companies and mutual funds, corporate advisory services etc., which were not taxable under VAT. As on 30th June 2017, they had in their possession physical stock of goods such as computers, laptops etc., which were utilized by them in providing the output services. Placing reliance on the transitional provisions. They have availed input tax credit on closing stock of computers, laptops and other goods lying in the physical possession of the applicant as on 30th June, 2017.

DISCUSSIONS & FINDINGS
The contentions raised by the appellant have been examined in detail. The issue to be decided in this appeal is whether the Computers, Laptops etc used by the appellant for providing output service would qualify as "Inputs" for the purpose of availing transitional input tax credit under the transitional provisions of the KSGST Act, 2017.
i) The appellant is engaged in providing retail financial services like stock brooking, share brooking, marketing of initial public offering of companies and mutual funds, corporate advisory services etc.

a. In the pre-GST period, the services provided by the Appellant did not have any liability under the Kerala VAT law and the Computers, Laptops etc., used by them were stated as Capital Assets in their books of accounts.

b. In the GST period, the services provided by the Appellant are liable to GST and the Computers, Laptops etc., used by them are continued to be stated as Capital Assets in their books of accounts.

ii) Section 2(19) of the KSGST Act, 2017 defines "capital goods" as

"goods, the value of which is capitalized in the books of account of the person claiming the input tax credit and which are used or intended to be used in the course or furtherance of business."

Further, Section - 2(59) of the KSGST Act, 2017 defines "inputs" as

"any goods other than capital goods used by a supplier in the course or furtherance of business."

iii) Hence, from the points (i) and (ii) above it is clear that, in the GST period, the input tax credit of tax paid on Computers, Laptops etc., can only be claimed as "Capital Goods" but not as "Inputs."

iv) As per Clause (ii) of Section 140(3) of the KSGST Act, 2017, a registered person is eligible for Input Tax credit, if he is also eligible under the KSGST Act, 2017 to claim the Input Tax credit on such Inputs. Since, the Computers, laptops etc., fail to qualify as "Inputs" under KSGST Act, 2017 and thereby fail to satisfy the condition set under Clause (ii) of Section 140(3) of the KSGST Act, 2017, hence they are not eligible to claim Input Tax credit under transitional provisions of the VAT paid during the pre-GST period on the computers and laptops etc., physically available on 30th June, 2017.

v) Further, the Computers, Laptops etc., which were lying in stock as on 30,06.2017 were declared as capital assets prior to GST and used by the appellant for providing output services. Thereby they had no tax liability under the erstwhile KVAT law. Further, they squarely fall under the definition of "Capital Goods" under Section 2(19) of the KSGST Act, 2017 and not under Section 2(59) of the KSGST Act, 2017. Hence the relevant transitional provision applicable in the instant case is Section 140(2) of the KSGST Act, 2017 and Section 140(3) Of the KSGST Act cannot be invoked.
vi) As per section 140(2) of the KSGST Act 2017, a registered person, other than a person opting to pay under Section 10, shall be entitled to take, in his electronic credit ledger, credit Of un-availed input tax credit in respect Of capital goods, not carried forward in a return, furnished under the existing law by him, for the period ending with the day immediately preceding the appointed day in such manner as may be prescribed. Proviso to the said sub-section of the Kerala SGST Act stipulates that the registered person shall not be allowed to take credit unless such credit was admissible as input tax credit under the existing law and is also admissible as input tax credit under the Act.

vii) The appellant being a service provider, had no tax liability under the erstwhile KVAT Act, and thereby was not eligible to avail input tax credit on computers and laptops held during the transition period. Hence the transitional input tax credit claim of the Taxpayer in respect of capital goods is not admissible as per the transitional provisions of the KSGST Act, 2017.

viii) In view of the above discussions, this Appellate Authority for Advance ruling does not find any reason to modify the decision of the Authority for Advance Ruling, issued vide paper recd 1st above. Accordingly, the following orders are issued.

ORDER No. AAR/05/2018 DATED 14.12.2018

The computers, laptops etc., used by the appellant for providing output service would not qualify as inputs, though they are physically available as on 30th June, 2017 for the purpose of availing transitional input tax credit of the VAT paid during the pre-GST period, under Section 140 of the KSGST Act, 2017.

Therefore the appeal is disallowed.

06/03/2019

FACTS OF THE CASE IN CASE OF G. MURUGAN VERSUS GOVERNMENT OF INDIA, THE STATE TAX OFFICER/PROPER OFFICER (hereinafter referred to as "Petitioner")
The admitted facts are that the petitioner had carried goods of Schaeffler India Ltd, from its warehouse at Chettipedu, Sriperumbudur, Tamil Nadu to Sriperumbudur. According to the petitioner, the goods were accompanied by all required documents, such as tax invoices, E-Way bills and delivery Challan. The value of the goods was ₹ 8,63,595/-.
While this was so, the vehicle was intercepted by the officials of the Commercial Taxes, Department who proceeded to cause inspection of the same. A statement had been recorded in Form GST MOV-01, from the driver who was incharge of the goods in conveyance. Admittedly, the statement at Column 10 thereof, admits that there is a mistake in the vehicle number mentioned. Thereafter, Form GST MOV- 02, ordering the physical verification/inspection of the conveyance, goods and documents was issued. The order, dated 04.02.2019, though signed by the Proper Officer is blank in so far as all relevant fields are concerned.

ISSUE FOR CONSIDERATION
Ques: Goods have been detained by the statutory authority or proper officer for wrong mentioning of lorry number. It is upon the officer to made mention of the contravention in the field provided in the impugned order for such purpose but the same has not been made. Now on the basis of this reason, goods have been detained by the proper officer in accordance with the provisions of section 129 of the Act.

Reply: Keeping in view the facts of case, the hon'ble High Court of Madras held as under
"Admittedly, in the sworn statement recorded from the lorry driver, a mistake had crept in, in the mentioning of the lorry number as TN 19 U 7857 instead of TN 19 U 7873. One assumes this to be a reason for the detention. However, detention of the conveyance and goods is an extreme step that seriously prejudices an assessee and it is incumbent upon the statutory authority/the Proper Officer arrayed as respondent No.2, to have made mention of the contravention in the field provided in the impugned order for such purpose. This has not been done.
In the light of the above discussion, I am of the view that the present order of detention cannot be sustained and the same is quashed. "

OBSERVATION & FINDINGS
The provisions of Section 129 of the Goods and Services Tax, 2017 provide for detentions, seizure and release of goods and conveyances in transit in a situation where the transit is in contravention of the provisions of the Act or the Rules made therein. Section 129(1) is extracted herein.
129 Detention, Seizure And Release Of Goods And Conveyances In Transit

(1) Notwithstanding anything contained in this Act, where any person transports any goods or stores any goods while they are in transit in contravention of the provisions of this Act or the rules made there under, all such goods and conveyance used as a means of transport for carrying the said goods and documents relating to such goods and conveyance shall be liable to detention or seizure and after detention or seizure, shall be released,- (a) on payment of the applicable tax and penalty equal to one hundred per cent. of the tax payable on such goods and, in case of exempted goods, on payment of an amount equal to two per cent. of the value of goods or twenty-five thousand rupees, whichever is less, where the owner of the goods comes forward for payment of such tax and penalty; (b) on payment of the applicable tax and penalty equal to the fifty per cent. of the value of the goods reduced by the tax amount paid thereon and, in case of exempted goods, on payment of an amount equal to five per cent. of the value of goods or twenty five thousand rupees, whichever is less, where the owner of the goods does not come forward for payment of such tax and penalty; (c) upon furnishing a security equivalent to the amount payable under clause (a) or clause (b) in such form and manner as may be prescribed: Provided that no such goods or conveyance shall be detained or seized without serving an order of detention or seizure on the person transporting the goods.'
Thus, detention/seizure is provided for only in cases where the Department is prima facie convinced that there is a contravention of the provisions of the Act and the Rules. The order of detention has to reflect the reasons for which the seizure of the conveyance/goods has been effected.

A perusal of the impugned order reveals that none of the relevant fields have been ticked and almost all fields have been left blank. It is thus entirely unclear as to what statutory provision or Rule the petitioner has contravened. A pointed query put in this regard to the learned Additional Government Pleader appearing on behalf of the respondents also elicits no details and he is also unable to enlighten the Court on what the contraventions might be.

Admittedly, in the sworn statement recorded from the lorry driver, a mistake had crept in, in the mentioning of the lorry number as TN 19 U 7857 instead of TN 19 U 7873. One assumes this to be a reason for the detention. However, detention of the conveyance and goods is an extreme step that seriously prejudices an assessee and it is incumbent upon the statutory authority/the Proper Officer arrayed as respondent No.2, to have made mention of the contravention in the field provided in the impugned order for such purpose. This has not been done.

Though Section 107 of the Act provides for appeals or revisions that may be filed by any person aggrieved by any decision or order passed under this Act by an adjudicating authority, I am not inclined, in the circumstances of the present case, to relegate the petitioner to the statutory remedy provided. Any appeal that the petitioner might file would have to assume the contraventions that the impugned order is based upon since the impugned order is incomplete and wholly non-speaking, leaving even mandatory fields in the order, blank.

In the light of the above discussion, I am of the view that the present order of detention cannot be sustained and the same is quashed. The vehicle shall be released forthwith upon receipt of a copy of this order. The writ petition is allowed and connected miscellaneous petitions are closed. No costs.

Hope the aforesaid information shall assist you in all your future endeavors
In case of any queries, feel free to revert.

27/02/2019

Urgently Required Accountant or Paid Assistant or semi qualified accountants in a chartered accountancy firm based at Pitampura, New Delhi.
Requirement:- a good hand on excel
Interested candidate can drop their CV at [email protected]

For other details plz contact on 9953157961, 9953227437

19/02/2019

RECENT CIRCULARS ISSUED ON 18.02.2019

Circular No. 89/08/2019-GST
Under this circular, it has been instructed that the registered persons making inter-State supplies to unregistered persons shall report the details of such supplies along with the place of supply in Table 3.2 of FORM GSTR-3B and Table 7B of FORM GSTR–1 as mandated by the law. Contravention of any of the provisions of the Act or the rules made there under attracts penal action under the provisions of section 125 of the CGST Act.
As, non-mentioning of the said information results in –
(i) non-apportionment of the due amount of IGST to the State where such supply takes place; and
(ii) a mis-match in the quantum of goods or services or both actually supplied in a State and the amount of integrated tax apportioned between the Centre and that State, and consequent non-compliance of sub-section (2) of section 17 of the Integrated Goods and Services Tax Act, 2017.

Circular No. 90/09/2019-GST
Via this circular, it has been instructed that all registered persons making supply of goods or services or both in the course of inter-State trade or commerce shall specify the place of supply along with the name of the State in the tax invoice. The provisions of sections 10 and 12 of the Integrated Goods and Services Tax Act, 2017 may be referred to in order to determine the place of supply in case of supply of goods and services respectively. Contravention of any of the provisions of the Act or the rules made there under attracts penal action under the provisions of sections 122 or 125 of the CGST Act.

Circular No. 91/10/2019-GST
Supply of warehoused goods while deposited in customs bonded warehouse had attained the character of inter-stater supply as per the provisions of Integrated goods and services tax Act, 2017. But, due to non-availability of the facility on the common portal, suppliers have reported such supplies as intra-State supplies and discharged central tax and state tax on such supplies instead of integrated tax. In view of revenue neutral position of such tax payment and that facility to correctly report the nature of transaction in FORM GSTR-1 furnished on the common portal was not available during the period July, 2017 to March, 2018, it has been decided that, as a one-time exception, suppliers who have paid central tax and state tax on such supplies, during the said period, would be deemed to have complied with the provisions of law as far as payment of tax on such supplies is concerned as long as the amount of tax paid as central tax and state tax is equal to the due amount of integrated tax on such supplies.

However, it is pertinent to mention that such supply of warehoused goods while deposited in customs bonded warehouse before their clearance from the warehouse would not be subject to the levy of integrated tax with effect from 01.04.2018. Therefore the aforesaid liberalization has been provided only for the period starting from July 2017 to March 2018.

Further the suitable trade notices may be issued to publicize the content of this circular.

Hope the aforesaid information shall assist you in all your future endeavors.
For any further clarification, feel free revert at [email protected]

16/02/2019

ISSUE FOR CONSIDERATION IN THE CASE OF M/S IMF COGNITIVE TECHNOLOGY PRIVATE LIMITED (hereinafter referred to as Applicant)
Applicant has sought ruling to be pronounced under section 97 (2) (d) of the CGST Act 2017, on the following questions:

Question:-1) Whether the input tax credit of Central Tax paid in Haryana be available to the applicant who is registered in Rajasthan State, whereby such tax is paid on inward supplies used for business of person registered in Rajasthan?

Reply :-) Input tax credit of Central tax paid in Haryana is not available to the applicant who is registered in the state of Rajasthan

DETAILED FACTS OF CASE
That, the applicant is a company incorporated and registered under the Companies Act, 2013 and engaged in development, designing and trading in all type of computer software and is also engaged in export of software. The applicant has taken registration in the State of Rajasthan in Goods and Services Tax Law.The applicant procures various goods or services for the purpose of trading and export of goods/ services from state of Rajasthan as well as outside the state in the form of intra-state and inter-state inward supplies. The company claims the credit of taxes paid on goods and services, which are used in the course or furtherance of business and the place of supply of such goods/ services is the state of registered place of business i.e. Rajasthan. In case of procurement of inward supplies from other states, at times supplier charges CGST & SGST of the state of supplier.
For example, the applicant is registered in the state of Rajasthan and if it procures services of short term accommodation (i.e. hotel) in Haryana, the supplier (i.e. hotel) normally charges of CGST & SGST of that state, due to the reason of place of supply being in the state of supplier.

OBSERVATIONS & FINDINGS
The question raised by the applicant is about the eligibility to claim ITC of Central Tax paid in Haryana.
The preamble of CGST Act, 2017 is as below:
“An Act to make a provision for levy and collection of tax on intra-State supply of goods or services or both by the Central Government and for matters connected therewith or incidental thereto.”

While going through the preamble of the CGST Act, 2017 this authority is of the opinion that CGST is payable in case of intra-state trade or commerce i.e. intra-state supply of goods and services.

The preamble of IGST Act, 2017 is as below:
An Act to make a provision for levy and collection of tax on inter-State supply of goods or services or both by the Central Government and for matters connected therewith or incidental thereto.

Thus, IGST is payable in the case of inter-state supply of goods and services.

The basic principle behind the provisions relating to the place of supply is that GST is a destination based tax. Thus tax is finally payable where goods and services are consumed.
In the instant case the applicant who is registered in state of Rajasthan has availed and consumed accommodation services provided by a hotel located outside the state of Rajasthan.
Therefore, it is observed that in the GST regime SGST and CGST charged for the services provided and availed in a state would be eligible for ITC within that particular state where such services were provided and consumed. As the supplier of services and place of supply both are outside the state of Rajasthan, hence, Input tax credit of Central Tax paid in Haryana is not available to the applicant.

Aggarwal Jain & Associates

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