indiatimes.com    2018-12-07 00:00:00

NEW DELHI: The Central Pollution Control Board ( CPCB ) has directed all state pollution control boards and pollution control committees to strictly implement the Centre's notification on utilisation of fly ash from coal and lignite-based thermal power plants by December 31. The notification mandates mixing of ash in brick manufacturing, use of ash-based products in construction activities and use of ash in low lying reclamation projects, among others. Fly ash, toxic remains of coal and lignite burning in power plants, is full of chemicals that not only pollute local soil, air and water but also cause harm to public health . Keeping this in mind, the government had notified a policy for utilising fly ash in 2009. However, its implementation has remained tardy.The CPCB issued the directions as non-utilisation and insufficient utilisation of ash generated from coal and lignite based thermal power plants were leading to a major environmental problem. It asked state boards to enlist all brick manufacturing units located within a radius of 100 km of thermal power plants in states . District magistrates have been asked to consider cancellation of permission of brick manufacturing units within the 100 km radius who are not complying with the provisions.The CPCB also asked boards to submit annual implementation report and minutes of the meetings of state level monitoring committee by June 30 every year.

moneycontrol.com    2018-12-06 23:32:00

The Confederation of All India Traders (CAIT) said it has urged finance minister Arun Jaitley to extend the last date for filing annual goods and services tax (GST) return from December 31, 2018 to March 31,2019. In its communication to the finance minister, CAIT said that the format of filing of annual GST return is not available anywhere including the GST website. In fact, the option itself is not available. "Under such circumstances it will not be possible for the traders to file their annual GST return by the stipulated period and as an immediate measure, the CAIT has urged to extend the last date of filing annual GST return up to March 31 2019 for the period 2017-18," it said. CAIT also urged that format should be made available in regional languages. It noted that the concept is till unclear to a large number of traders and most are not even aware of the obligation of filing annual GST return. Moreover, they are unaware that annual return is the last opportunity for assessees to rectify their previously filed return with the department for the concerned year.

thehindu.com    2018-12-06 19:51:00

December 07, 2018 01:21 07, 2018 01:21 IST more-in Golden Rock Railway Workshop in Tiruchi ties up with cement factory for disposal of polymeric waste The Southern Railway Workshop, Golden Rock, has adopted a scientific method to dispose tonnes of zero-value non-hazardous polymeric waste accumulated over the years on its sprawling campus in Tiruchi. The 85-year-old workshop entered into an agreement with UltraTech Cement Limited at Ariyalur district last year, paving the way for the safe disposal of non-hazardous waste to the cement unit for use in its kilns as an alternative fuel in what is being seen as a "win-win situation" for both. Huge relief The decision has come as a huge relief to the workshop which, until last year, virtually had no clue as to how to dispose the non-hazardous waste that kept piling over the last two decades, posing a huge environmental and safety hazard. Engaged in POH (periodic overhaul) of 1,200 broad gauge passenger coaches and 120 broad gauge diesel locomotives, the British-built workshop has also become a manufacturing unit, rolling out new container wagons for the Railways and the Container Corporation of India. It produces steam locomotives for the heritage Nilgiri Mountain Railway (NMR) and also overhauls them. Piling materials While ferrous and non-ferrous waste generated in the workshop, spread over 200 acres, were being sold through auction every year, it was the piled up zero-value non-hazardous waste in the form of cushions, artificial leather, seat covers, rubber belts and other rubber products that posed a fire as well as an environmental hazard, said chief workshop manager P.N. Jha. A solution finally emerged last year when the workshop came to know that non-hazardous waste could be disposed of scientifically by way of "co-processing" at cement plants. Negotiations with UltraTech Cement fructified, leading to an agreement between the two to dispose of 5,000 metric tonnes of accumulated zero-value non-hazardous waste, said Mr. Jha. Since January, when the first load of waste was dispatched to the cement unit, around 1,500 metric tonnes of accumulated waste has so far been safely transported to the unit, Mr. Jha said. The remaining accumulated waste would be sent in the coming months. The cement unit utilises the waste after shredding as an alternative fuel in its kilns. The waste in the kilns is burnt at a very high temperature of nearly 1,400 centigrade, which would leave behind no residue, he said. TNPCB nod The workshop has also obtained the clearance from the Tamil Nadu Pollution Control Board for the disposal mechanism. The cement factory for its part had received clearance from the Central Pollution Control Board for co-processing, the official said. With nearly 25% to 30% of accumulated waste being cleared so far, the workshop has been successful in reclaiming nearly 50,000 sq. ft. area where it has currently embarked on a green drive, planting saplings of various species.

moneycontrol.com    2018-12-06 19:18:00

Anand Rathi Securities As expected, the RBI maintained status quo on key policy rates at its December 2018 monetary policy meet. It also announced a calibrated 150bp cut in the SLR. The tone of the policy was largely dovish. While the "calibrated tightening" stance of the interest rate policy continues, the RBI remains accommodative regarding liquidity. We expect it to keep rates unchanged in FY19. The backdrop The overwhelming weight of events since the last monetary policy meeting seems to have prompted RBI to maintain status quo on rates for the second successive time. Retail inflation is well below its projected target. The sharp slump in global crude oil prices also minimises the risk of a fuel-price-led spike in inflation. The strengthening of the rupee eases the risk of imported inflation as well. While there are doubts about whether the US Federal Reserve Chairman has actually communicated a dovish stance, the consensus is that tightening in the US will be far more contained than what was expected a few months ago. On the top of this, the real growth rate in the quarter ending September 2018 has been more than a percentage point lower than that in the quarter before. Therefore, it was not a surprise that the RBI held the policy rates at its December monetary policy meeting. RBI forecloses the option of a rate cut As an explicitly inflation-targeting central bank, the clear mandate of the monetary policy is to take necessary measures to keep inflation around 4 percent. Moreover, the RBI is obliged to target retail and not any other form or component of inflation. With the current retail inflation is substantially lower than this target and the RBI's own projection of a further fall in the inflation during the rest of FY19, it is pertinent to question whether the central bank could explore a rate cut in a period when the real interest rate is at a historic high. Unfortunately the RBI has foreclosed this option. While moving from a 'neutral' to a 'calibrated tightening' stance at the last policy meet, the bank explained that the transition means that the 'rate cut' option is off the table. Interestingly, the 'calibrated tightening' phrase, on to its own admission, pertains only to the policy rate and not the liquidity. The latter turned accommodative post-August 2018 on the backdrop of upheavals in the corporate debt market and among the NBFCs. NBFCs may continue to need support; SLR cut negative for bonds The RBI has taken numerous general and NBFC-specific measures to ease the liquidity situation for NBFCs. The outcome has so far been on desired lines. Yet, problems faced by NBFCs would require considerable recasting of balance sheets and would be a long-drawn process. It is to be seen the extent to which the RBI aids this process. The phased statutory liquidity ratio (SLR) cut announced on December 5 would help the banking system with a seriously stretched credit-deposit ratio. This is also in line with the RBI's long-term objective to reduce pre-emption of banks' resources by the government without undermining the quality of banks' balance sheets. Yet, the process would potentially reduce bank holdings of the government by Rs 2 trillion by mid-2020 and may therefore be negative for the bond market. Outlook The RBI is likely to keep the policy interest rate unchanged for the current financial year. We feel that its change in policy stance from accommodative to neutral was ahead of the curve as also the move from neutral to calibrated tightening. As a data-dependent explicitly inflation-targeting central bank, the RBI should not procrastinate on reverting to the easing stance if inflation continues to hold below the target. The author is Chief Economist at Anand Rathi Securities.

thehindu.com    2018-12-06 17:10:00

December 06, 2018 22:22 22:40 IST more-in Format unavailable, say traders The Confederation of All India Traders (CAIT) has written to Finance Minister Arun Jaitley asking him to push the deadline for filing of annual GST returns to March 31, 2019 from December 31, 2018, now. "It is to bring to your kind notice that till today the format of filing of annual GST Return and even option is not available anywhere including on GST website as well," CAIT wrote in the letter. "The annual GST return assumes much significance as it gives last opportunity to assessees to rectify their previous return filed with the department for the concerned year." "Under such circumstances it will not be possible for the traders to file their annual GST return by the stipulated period and as such, we request your good self to extend the last date of filing annual GST return up to 31 March, 2019 for the period 2017-18," CAIT said. CAIT further said that a large number of traders in the country were not even aware that they had to file an annual return. "While urging for extension of last date, we also request that a widespread national campaign should be launched by the government to make assesses aware about the liability of filing annual GST return and its process," CAIT added.

thehindubusinessline.com    2018-12-06 16:03:00

PTI T+ T- Mumbai, December 6 The Confederation of All India Traders (CAIT) on Thursday said it has urged Finance Minister Arun Jaitley to extend the last date for filing the annual goods and services tax (GST) return from December 31, 2018 to March 31,2019. In its communication to the Finance Minister, CAIT said the format of filing of annual GST return is not available anywhere including the GST Website. "Under such circumstances it will not be possible for the traders to file their annual GST return by the stipulated period and as an immediate measure, the CAIT has urged to extend the last date of filing annual GST return up to March 31 2019 for the period 2017-18," it said. Published on

thehindubusinessline.com    2018-12-06 15:52:00

UP announces procedure for SGST relief to multiplexes T+ T- New Delhi, December 6 Shishir Sinha Multiplexes such as PVR, INOX and GGN can heave a sigh of relief as the Uttar Pradesh Government has announced detailed procedures for refund mechanism under Goods and Services Tax (GST) for multiplexes in the State. It is the second State after Rajasthan to announce such a mechanism. There are over 8,700 screens (both multiplexes and single screen) in India, out of which nearly 500 are in Uttar Pradesh alone. The basic principle of GST does not promote exemption, but prescribes for deposit of taxes due. However, both the Centre and States can prescribe refund mechanism in lieu of exemption to continue promoting industrial activities in their respective region. Accordingly, beneficiaries will first have to deposit the tax and then they will be given refund. The UP Government, in its Cabinet meeting on November 20, decided to have such a mechanism for the multiplexes/cinema theatre and has come out with details about "the limits and procedures of grant-in-aid given as an incentive to multiplexes/cinema theatres after the GST regime." This will be applicable to both running and under-construction entities. The need for such a policy arose after the entertainment tax was subsumed in the GST. Prior to introduction of GST, the State Government offered incentive in the form of five-year tax exemption to multiplexes. As part of the scheme of exemption, multiplex companies were allowed to retain 100 per cent of the entertainment tax charged in the first year, 75 per cent in the second and third years, and 50 per cent charged in fourth and fifth year of operations, respectively. There was question mark on continuation of such incentive post GST which forced many multiplexes to seek legal recourse for the continuation of the scheme. The Yogi Government then came out with the detailed procedure. Abhishek A Rastogi, partner at Khaitan & Co, who is the arguing counsel for various petitioners, termed this a big step forward towards the promises made to businesses and said that UP has lived up to the expectations. "It is to be seen whether the Central Government also offers similar benefit. However, the quantum of benefit granted is not the same as that promised in the past and hence the dispute to that extent may remain before the courts in case of few multiplexes. The State may consider extension of time to meet the deficit," he said. How reimbursement works According to circular dated December 3, the licence holders for the multiplexes/cinema theatres need to deposit the SGST (State Goods and Services Tax) collected from the viewers in State treasury. Within a month, by the pre-determined procedure and as per the allocated budgeted, the equivalent amount of the SGST collected from the viewers will be transferred in the account of the concerned multiplexes/cinema theatres. For all such units covered under incentives schemes before the application of GST regime and have incentive in the form of grants-in-aid, the amount of SGST deposited by them will be reimbursed as permissible on annual percentage basis. Various multiplex have different dates for the beginning of such incentives which will continue for five years. A senior State Government official said under the new mechanism, effort is to ensure commitment for the period as promised during the pre- GST regime. Earlier, the Rajasthan Government, in its new policy, decided to refund 50 per cent of the State GST collected on tickets to multiplex owners, who were promised exemptions. Published on

thehindubusinessline.com    2018-12-06 13:14:00

It has over 150 hospitals and around 17,000 beds for patients across the country New Delhi, Dec 6 The Employees' State Insurance Corporation (ESIC) has allowed public other than its subscribers to avail medical services at its under-utilised hospitals. The decision was taken during the ESIC's 176th meeting held on December 5 under the chairmanship of Labour Minister Santosh Kumar Gangwar, a labour ministry statement said. The decision will immensely help common people avail quality medical care at low cost and ensure full utilisation of ESIC hospital resources, it added. In the meeting, it was decided to allow non-insured persons to avail medical services at under-utilised ESIC Hospitals after levying user charges at a subsidised rate of Rs 10 for outpatient department (OPD) consultation and at 25 per cent of Central Government Health Services' package rates for in-patients, the statement said. Also, the ESIC will provide medicines on actual rate initially for one year on a pilot basis. The ESIC has over 150 hospitals and around 17,000 beds for patients across the country. Recruitment It has also approved hiring of full-time contractual staff in various departments to meet the shortage of specialist/super-specialist doctors in some of its hospitals. The recruitment to 5,200 posts such as social security officer, insurance medical officer Grade-II, junior engineers, teaching faculty, paramedical & nursing cadre, upper division clerks and stenographers, among others, in the ESIC is under process, it said. Exemption limit enhancement In a major move, the labour ministry has decided to enhance the exemption limit for payment of employees' share of contribution from Rs 137 to Rs 176. This comes in the wake of rise in the national floor-level minimum wages to Rs 176. Among the officials present at the meeting were Labour and Employment Secretary Heeralal Samariya, ESIC Director General Raj Kumar and senior officers of the ministry. Published on

btvi.in    2018-12-06 12:25:00

ESIC allows people other than subscribers to avail OPD services at its hospitals ESIC allows people other than subscribers to avail OPD services at its hospitals File photo: Logo of ESIC is seen in this illustration photo. Dec 06 2018 1 hrs ago New Delhi: The Employees' State Insurance Corporation (ESIC) has allowed public other than its subscribers to avail medical services at its under-utilised hospitals. The decision was taken during the ESIC's 176th meeting held on December 5 under the chairmanship of Labour Minister Santosh Kumar Gangwar, a labour ministry statement said. The decision will immensely help common people avail quality medical care at low cost and ensure full utilisation of ESIC hospital resources, it added. In the meeting, it was decided to allow non-insured persons to avail medical services at under-utilised ESIC Hospitals after levying user charges at a subsidised rate of Rs 10 for outpatient department (OPD) consultation and at 25 per cent of Central Government Health Services' package rates for in-patients, the statement said. Also, the ESIC will provide medicines on actual rate initially for one year on a pilot basis. The ESIC has over 150 hospitals and around 17,000 beds for patients across the country. It has also approved hiring of full-time contractual staff in various departments to meet the shortage of specialist/super-specialist doctors in some of its hospitals. The recruitment to 5,200 posts such as social security officer, insurance medical officer Grade-II, junior engineers, teaching faculty, paramedical & nursing cadre, upper division clerks and stenographers, among others, in the ESIC is under process, it said. In a major move, the labour ministry has decided to enhance the exemption limit for payment of employees' share of contribution from Rs 137 to Rs 176. This comes in the wake of rise in the national floor-level minimum wages to Rs 176. Among the officials present at the meeting were Labour and Employment Secretary Heeralal Samariya, ESIC Director General Raj Kumar and senior officers of the ministry.

taxguru.in    2018-12-06 07:49:00

Annuity received from annuity policy purchased on maturity of the NPS account. For the employees who receive pension from their ex-employer is fully taxable under the head salaries. So it is not only the active employees whose salaries are taxed under the head Salaries but also the pension receive by ex-employees is also taxed under the same head. Like Salaried employees, the pensioners are also entitled to the benefit of standard deduction available upto forty thousand rupees every year which has been introduced from this year, against the pension received by them. You are entitled to commute certain portion of your pension and receive the present value of such commuted value of pension at the time of your retirement. For government employees and those working with government companies the entire value of commute pension is exempt. However for other employees commuted value of 1/3 of pension is exempt in case the employee receives any gratuity. In case the employee does not receive any gratuity, he can commute pension upto 50% of the pension and claim the same as exempt. Pension received under superannuation policy or employee pension scheme In case your employer had contributed towards superannuation fund or ha purchased superannuation policy for you, the pension received by your from the insurance company is taxable under the head Salary as it is received as a result of your employment. Even for the 1/3 of the commuted portion of pension receivable under the superannuation is fully exempt. Likewise the pension received by you under the EPS based on your contribution towards EPF is fully taxable in your hand. Since this pension is received as a result of your employment, you are entitled to claim standard deduction as discussed above. Family pension Pension received by the dependent of an employee is called family pension and is fully taxable in the hands of the dependent recipient/s. However as the pension is not received due to services rendered by the dependent the same is taxable under the head "Income From Other Source". However the dependent person who receives the pension is entitled to claim a deduction of 1/3 of the pension received subject to a maximum of fifteen thousand rupees against the deduction of forty thousand rupees available to retired employees. Annuity received from insurance company on the annuity policy purchased by you In order to ensure that you receive a certain sum at a fixed period, you can buy an annuity plan from an insurance company which in turn will pay the agreed amount at the agreed interval which is annuity but loosely called pension. The amount of pension received under an annuity plan is fully taxable under the head "income from other Sources." Since this amount does not have any co-relation with any employment, you are not entitled to claim standard deduction against this amount. Annuity received from annuity policy purchased on maturity of the NPS account. The employees who have opted for NPS instead of EPF account have to mandatorily buy an annuity plan from an Indian insurance company for 40% of the accumulated corpus. The pension received by these employee should be taxable under the head Salaries but since the employee can continue to contribute to his NPS account even after he leaves his employment or even when he turns self employed, it is doubtful whether in such situation the annuity received will become taxable under the head Salaries or it should be taxable under the head "Income From other Sources". Likewise even a self employed person can also contribute towards the NPS account and receive pension. Presently the income tax law does not have any clear cut provision as to the head under which the annuity received for annuity policy bough on retirement should be taxed. In my opinion for the salaried the pension should be taxable under the head Salaries and should also be entitled for standard deduction upto Forty thousand rupees. But Since the law is silent on this aspect it is risky to offer it under the head Salaries for claiming the standard deduction. Additionally salaried and self employed both can contribute additional fifty thousands to claim deduction under Section 80 CCD(1B) so the head under which the pension received will become taxable and whether one will be entitled to claim standard deduction is a grey area and clarificatory amendment of the law is needed to clear the clouds. The writer is tax and investment expert. Author Bio Qualification : CA in Job / Business Company : N/A

indiatimes.com    2018-12-06 06:53:00

By Archit Gupta The Central Board of Indirect tax and Customs ( CBIC ) has issued the format of annual returns under the Goods and Service Tax ( GST ). The Taxpayers have to file their first GST annual returns pertaining to the Financial Year 2017-18 by December 31, 2018. The government has introduced different types of annual return keeping in mind the various categories of taxpayers. For instance, GSTR-9 for regular taxpayers and GSTR-9A for composition scheme taxpayers have been issued. All the taxpayers registered under GST except input service distributors, casual taxable persons, non-resident taxable persons and persons liable to deduct tax at source, and are required to file the annual returns. Here are some key points one must keep in mind before filing the annual returns for the FY 2017-18: Reconciliation of the books of accounts and tax invoices are issued during July 2017 to Mar 2018 is of utmost importance; this should match the turnover declared in the audited financial statements. It is important for the figures in the books of accounts and the invoices to match or else the GST paid will be incorrect. Along with the invoices, debit and credit notes shall also be in agreement with books of accounts. Stock transfer between the units/branches of the company should be matched with the books of accounts to avoid any discrepancy in the stock-in-hand balance of the books and that of the GST data. Matching of e-way bill data with the tax invoices issued during the period is also very necessary. The e-way bill data state-wise should be carefully mapped with the invoices to keep track of the goods transported and GST paid thereon. Taxpayers should ensure that all the purchase & other service invoices are accounted for in the books of accounts and input tax credit has been duly availed. Any disparity between the input tax credit claimed and tax paid on purchases will result in an incorrect claim of ITC in GST returns. Once the purchase invoices are in agreement with the books of accounts, the taxpayers should ensure that the purchase data is duly uploaded by the suppliers; this data will be reflected in the GSTR-2A form. Before going forward with filing the annual returns, the taxpayers should reconcile all the monthly or quarterly GST returns with the books of accounts. The taxable, exempted and non-GST turnover should be carefully matched. Any difference should be immediately corrected. Ensure that the invoices on which input tax credit has been claimed should be paid within 180 days to the suppliers. If not, the credit availed on the same will be reversed and the taxpayers will be liable to pay such amount along with the interest and penalty if any. While reconciliation the GST paid by electronic cash or credit ledger, the taxpayers should also account for GST paid under Reverse Charge Mechanism (RCM) on the applicable expenses. Make sure that you follow the tips mentioned above, before the December 31, 2018. The rationale behind the filing of the annual return is to consolidate and declare all the information furnished in the monthly or quarterly GST returns during the year. (The writer is Founder & CEO ClearTax)

taxguru.in    2018-12-06 02:05:00

Download Judgment/Order In re Enmarol Petroleum India Pvt. Ltd. (GST AAR Maharashtra) Question 1:- Whether the applicant is liable to pay GST on the supply of goods located outside India to customers within India without physically bringing the goods to India? Answer :- Answered in the negative. Question 2:- Whether the out & out supplies in the facts of the present case will be considered as export supplies or exempted supplies for the purpose of the GST? Answer:- The supplies in the present case would be "non-taxable supply" as per Section 2(78) of the CGST Act, 2017 which means a supply of goods or services or both which is not leviable to tax under this Act or under the Integrated Goods and Services tax Act. FULL TEXT OF ORDER OF AUTHORITY OF ADVANCE RULING MAHARASHTRA PROCEEDINGS (Under section 98 of the Central Goods and Services Tax Act, 2017 and the Maharashtra Goods and Services Tax Act, 2017) The present application has been filed under section 97 of the Central Goods and Services Tax Act, 2017 and the Maharashtra Goods and Services Tax Act, 2017 [hereinafter referred to as "the CGST Act and MGST Act"] by Enmarol Petroleum India Pvt. Ltd., the applicant, seeking an advance ruling in respect of the following ISSUE. 1) Whether the applicant is liable to pay GST on the supply of goods located outside India to customers within India without physically bringing the goods to India ? 2) Whether the out & out supplies in the facts of the present case will be considered as export supplies or exempted supplies for the purpose of the GST? At the outset, we would like to make it clear that the provisions of both the CGST Act and the MGST Act are the same except for certain provisions. Therefore, unless a mention is specifically made to such dissimilar provisions, a reference to the CGST Act would also mean a reference to the same provision under the MGST Act. Further to the earlier, henceforth for the purposes of this Advance Ruling, a reference to such a similar provision under the CGST Act / MGST Act would be mentioned as being under the "GST Act". 02 FACTS AND CONTENTION - AS PER THE APPLICANT The submissions, as reproduced verbatim, could be seen thus- Statement of relevant facts having a bearing on the questions raised 1. Brief Facts 1.1. Applicant is a private limited company registered under the provisions of the Companies Act, 1956. The Applicant is, inter alia, engaged in the business of the trading in marine fuel additive chemicals. 1.2. The Applicant is an authorized dealer of M/s. Innospec Limited a company registered in the England and Wales. The Applicant sells the marine fuel additive chemicals of Innospec Limited to shipping lines in India and outside India. 1.3. In the relevant fact of the present Advance Ruling Application, one M/s. AZA Shipping Pvt. Ltd., an Indian Company, placed a purchase order no. 721 on the Applicant dated 02.02.2018, requisition no 2000188 dated 08.01.2018, for 75 Ltrs of Innospec Fuel Specialities Octamar L15 Product. The said requirement has been specifically placed for the vessel M T CHAFA to be delivered to the vessel at Singapore Port on 13.01.2018 as per the email dated 08.01.2018. Copy of the P. O. No. 721 dated 02.02.2018 is marked as Annexure - 3. Copy of the email dated 08.01.2018 from Aza Shipping to Applicant is marked and annexed herewith as Ann - 4. 1.4. On receipt of the above confirmed purchase order from the Aza Shipping, the applicant placed purchase order on the M/s. Innospec Limited vide P.O. No. EPM-1718-608 dated 08.01.2018 for delivering 75 Litres of OCTAMAR LI-5 to vessel M T Chafa at Singapore. Copy of the P.O. No. EPM-1718-608 dated 08.01.2018 raised by the applicant on the Innospec Limited is marked and annexed as Annexure - 5. 1.5. The said order placed by the applicant on Innospec was confirmed by vide Order Confirmation document dated 10.01.2018. A copy of the order confirmation dated 10.01.2018 is marked and annexed herewith as Annexure-6 1.6. Thereafter on 11.01.2018, Innospec Limited delivered the goods through its Singapore Logistics Partner M/s. CWT Logistics Pte. Ltd. to the vessel MT Chafa at Singapore Port vide delivery order dated 11.01.2018 duly received by the vessel's Chief Engineer. A copy of the delivery order dated 11.01.2018 is marked and annexed herewith as Annexure - 7. 1.7. Thereafter, Innospec Limited raised invoice on the applicant on 13.01.2018 vide Invoice No. VSS1002165 in USD. A copy of the said invoice dated 13.01.2018 from Innospec Limited to applicant is marked and annexed herewith as Annexure - 8. 1.8. Thereafter, the Applicant raised an invoice on its customer M/s. AZA Shipping Pvt. Ltd. vide Invoice No. 2017-18-111 dated 18.01.2018 in INR. The copy of the invoice dated 18.01.2018 from Applicant to AZA Shipping is marked and annexed herewith as Annexure - 9. 1.9. The Applicant states that, the Applicant has not charged GST on the invoice raised to AZA Shipping considering the said supply to be non-taxable under GST in India. Statement containing the applicant's interpretation of law and or facts as the case may be, in respect of the aforesaid question(s) The Applicant is not liable to charge on the out and out transaction. 1.1 The Applicant submits that the above supply effected by the Applicant is not liable for GST in India on following grounds:- a) The said supply does not take place in India b) The said supply is an out & out transaction c) The place of supply for the said transaction cannot be determined under Section 10 of Section 11 of the IGST Act, 2017 d) Section 7(5) of the IGST Act, 2017 is also not applicable in the facts of the present case e) The goods are not consumed in any state in India. 1.2. The above grounds are elaborated in detail herein below: 2. The supply in the present transaction has taken place outside India. The India GST provisions will not apply to such transaction 2.1 The Applicant submits that as per Section 1 of the CGST Act, 2017 and Section 1 of the IGST Act, 2017, the GST Act applies only whole of India except the State of Jammu and Kashmir. 2.2 The term "India" has been defined under Section 2(56) of the CGST Act, 2017 as under: (56) "India" means the territory of India as referred to in article 7 of the Constitution, its territorial waters, seabed and sub-soil underlying such waters, continental shelf, exclusive economic zone or any other maritime zone as referred to in the Territorial Waters, Continental Shelf, Exclusive Economic Zone and other Maritime Zones Act 1976, and the air space above its territory and territorial waters, 2.3 Thus, on a plain reading of the above definition it is clear that the GST is applicable only to Supply as defined in Section 7 of the CGST Act, 2017 within the defined India. 2.4 The definition of India means territory of India as defined in Article 1 of the Constitution of India and its territorial waters, seabed and sub-soil underlying such waters, continental shelf, exclusive economic zone or any other maritime zone as referred to in the Territorial Waters, Continental Shelf, Exclusive Economic Zone and other Maritime Zones Act, 1976, and the air space above its territory and territorial waters. 2.5 The Applicant submits that, in the present facts of the case, though the supplier and the recipient is located in India, the supply in the form of sale of goods has taken place in Singapore where the goods are located and the delivery has been given at Singapore Port. 2.6 The said territory of Singapore does not fall under the definition of India and hence such supply would not be covered under the ambit of CGST Act, 2017 or IGST Act, 2017. 2.7. Hence, the aforesaid transaction would not be liable to GST in India. 3. The Applicant submits that the above transaction in question is an out & out transaction not liable to GST in India . 3.1. The Applicant submits that above transaction in question is an out and out transaction not liable to GST in India. In other words, the aforesaid transaction is neither import goods into India nor export of goods outside India. 3.2. The Application submits that following provisions of GST are relevant for the purpose of the understanding out and out transaction: 3.3. Section 2(5) of the IGST Act, 2017 defines export of goods as under:- 2(5) "export of goods" with its grammatical variations and cognate expressions, means taking goods out of India to a place outside India; 3.4. Section 2(10) of the IGST Act, 2017 defines "import of goods" as under:- 2(70) "import of goods" with its grammatical variations and cognate expressions, means bringing goods into India from a place outside India; 3.5. Firstly, the above definitions are with reference to the movement of goods and not the location of the supplier or recipient. 3.6. In the present case, admittedly there is no movement of goods into India or from India. The goods are in Singapore Port only. Thus, the above transaction can neither be considered as import or export of the goods. 3.7. Secondly, the Place of supply of the of an import or export of goods is determined as per Section 11 of the IGST Act, extracted as under:- 11. The place of supply of goods, (a) imported into India shall be the location of the importer; (b) exported from India shall be the location outside India." 3.8 It is submitted, the place of supply as per Section 11 can be determined only in case the transaction has resulted into import of goods or export of goods from India. Where there is no import of goods or export of goods, the above provision of Section 11 for determining the place of supply will not apply. 3.9 Hence, the applicant submits that the above transaction in question is an out and out transaction not liable to GST in India. 4. The Applicant further submits that, the place of supply cannot be also be determined under Section 10 of the IGST Act, 2017. 4.1 The Applicant submits that Section 10 of the IGST Act, 2017 determines the place of supply of goods for supplies other than imports and exports. 4.2 The Applicant submits that Section 10 is only relevant for determining the place of supply of goods movement of which is has taken place within India. As discussed above no provision of Section 10 can apply to a transaction where the entire movement has taken place outside India. Since the Act itself is applicable to India, therefore the Section 10 is also restricted to movement of goods within India only. 4.3. The above intention of the legislature is further clear from the scheme Chapter V of the IGST Act, 2017. 4.4. The Applicant submits that from the scheme Chapter V of the IGST Act, 2017, it can be seen that Section 10 is for determining the place of supply of goods other than import and export. Section is for determining the place of supply of goods for import and export. Section 12 is for place of supply of services for domestic transactions. Section 13 is for determining place of supply of service for international transaction. 4.5. Thus, it can be concluded that Section 10 if the IGST Act, 2017 is applicable for place of supply of goods in a domestic transaction. 4.6. In the present case, since the supply of goods is entirely outside India and not leg of the transaction is even remotely taking place in India, place of supply cannot be determined under Section 10 of the IGST Act, 2017. 5. The Applicant submits that Section 7(5) of the IGST Act, 2017 is also not applicable in the facts of the present case. 5.1. The Applicant submits that Section 7(5)(a) of the IGST Act, 2017 provides that where the supplier is located in India and the place of the supply is outside India, then the supply will be treated as place of supply in the course of inter state trade or commerce. The said Section 7(5) is extracted below for ready reference:- Sec (7)-Inter-State supply (5) Supply of goods or services or both, - (a) when the supplier is located in India and the place of supply is outside India; (b) to or by a Special Economic Zone developer or a Special Economic Zone unit; or (c) in the taxable territory, not being an intra-State supply and not covered elsewhere in this section, shall be treated to be a supply of goods or services or both in the course of inter-State trade or commerce. 5.2. The Applicant submits that above Section 7(5)(a) is also not applicable in the facts of the present case. For Section 7(5)(a) to apply there should be two variables available: a) supplier is located in India and b) Place of supply is outside India. 5.3. The applicant submits that in the present case both the above variable are absent. Firstly, the location of the supplier of goods is not defined under the GST Act. Only location of supplier of service is defined. Thus, as far as the goods is concerned, there can be no location of the supplier. In any case, even if it is held that location of the supplier has to be interpreted contextually, then the same has to be located qua a particular supply made under the GST Act. Since, in the present case, the sale is taking place outside India, it is not a supply under the GST Act and hence location of the supplier qua that sale cannot be determined under the Act. 5.4. Secondly, as explained above, the place of the supply for the transaction in question cannot be determined under the GST Act, neither under Section 10 nor under Section 11. Thus, even the second variable for Section 7(5)(a) is not determinable. 5.5. Thus, in view of the above submission, even Section 7(5)(a) will not be applicable in the facts of the present case. 6. The Applicant submits that the GST is destination based consumption tax. Since there is no consumption in India, there can be levy of GST. 6.1. Lastly, the Applicant submits that, GST is a destination based consumption tax. The same is taxable in India only if the consumption of the goods or services takes place in India. 6.2. Since in the present case, the consumption of the goods does not take place in India, the said transaction will not be taxable in any State in India. 03. CONTENTION - AS PER THE CONCERNED OFFICER The submission, as reproduced verbatim, could be seen thus- I The Jurisdictional Officer MUM-VAT-C-610 of Nodal Div. 3 after examined the said application with legal submission along with relevant record submitting herewith written contention as under. Point in Question : Please refer No 14 of ARA - 01 Commodity : Octamar LI-5 Product (HSN code-3811) Contention : As per the documents submitted by the dealer it is no way proved that the delivery of the said goods is made at Singapore (out of territory of India). This office is therefore of the opinion that the commodity in question is delivered in the territory of India and liable for GST @ 18% under HSN code 3811 w.e.f. 14.11.2017. 4. HEARING The case was taken up for Preliminary hearing on 08.08.2018 when Sh. Rahul Thakkar, Advocate along with Ms. Ritu Chaudhary , Director appeared and made written and oral submissions for admission of application as per contentions in their ARA. Jurisdictional Officer, Sh. Ashok G Hedau, State Tax Officer (C-610), Nodal Div. 3, Mumbai appeared & stated that they would be making submissions in due course. The application was admitted and called for final hearing on 05.09.2018. Shri Rahul Thakkar, Advocate along with Ms. Ritu Chaudhary , Director appeared and made oral and written submissions. Jurisdictional Officer, Sh. Sanjay Shegaokar, State Tax Officer (C-610), Nodal Divn. 3, Mumbai appeared and made written submissions. 05. OBSERVATIONS We have gone through the facts of the case, documents on record and submissions made by the applicant. The issue put before us is in respect of a transaction which is/would be on the lines as below: - 1. The applicant is engaged in the business of the trading in marine fuel additive chemicals. 2. The Applicant is an authorized dealer of M/s. Innospec Limited a company registered in the England and Wales. The Applicant sells the marine fuel additive chemicals of Innospec Limited to shipping lines in India and outside India. 3. In the present case, one M/s. AZA Shipping Pvt. Ltd., an Indian Company, placed a purchase order no. 721 on the Applicant dated 02.02.2018, requisition no 2000188 dated 08.01.2018, for 75 Ltrs of Innospec Fuel Specialities Octamar L15 Product. The said requirement has been specifically placed for the vessel M T CHAFA to be delivered to the vessel at Singapore Port on 13.01.2018 as per the email dated 08.01.2018. 4. On receipt of the above confirmed purchase order from the AZA Shipping, the applicant placed purchase order on the M/s. Innospec Limited vide P.O. No. EPM-1718-608 dated 08.01.2018 for delivering 75 Litres of OCTAMAR LI-5 to vessel M T Chafa at Singapore. 1.5. The said order placed by the applicant on Innospec was confirmed by vide Order Confirmation document dated 10.01.2018. 1.6. Thereafter on 11.01.2018, Innospec Limited delivered the goods through its Singapore Logistics Partner M/s. CWT Logistics Pte. Ltd. to the vessel MT Chafa at Singapore Port vide delivery order dated 11.01.2018 duly received by the vessel's Chief Engineer. 1.7. Thereafter, Innospec Limited raised invoice on the applicant on 13.01.2018 vide Invoice No. VSS1002165 in USD. 1.8. Thereafter, the Applicant raised an invoice on its customer M/s. AZA Shipping Pvt. Ltd. vide Invoice No. 2017-18-111 dated 18.01.2018 in INR. 1.9, The Applicant states that, the Applicant has not charged GST on the invoice raised to AZA Shipping considering the said supply to be non-taxable under GST in India. In continuation we find that the applicant has contended that GST is not liable to be paid by them on this out and out transactions on the following grounds:- a) The said supply does not take place in India b) The said supply is an out & out transaction c) The place of supply for the said transaction cannot be determined under Section 10 of Section 11 of the IGST Act, 2017 d) Section 7(5) of the IGST Act, 2017 is also not applicable in the facts of the present case e) The goods are not consumed in any state in India. In view of the above situation, the Applicant has raised the below two questions:- 1) Whether the applicant is liable to pay GST on the supply of goods located outside India to customers within India without physically bringing the goods to India? 2) Whether the out & out supplies in the facts of the present case will be considered as export supplies or exempted supplies for the purpose of the GST? In view of the detailed facts put up before us we find that the applicant would be purchasing goods from M/s Innospec on the basis of purchase orders received from their customer in India and the said goods would be delivered by M/s Innospec from outside India to the ship/vessel of the customer which is also outside India (non-taxable territory) i.e. Singapore. The order received by the applicant from their customers in India and order placed by them on M/s Innospec are back to back orders. Thus it is very clear that the goods are delivered by M/s Innospec from a place situated outside the taxable territory of India to their customer's vessel which is also located outside the taxable territory of India. Thus we find that the transaction is similar to the selling of goods on High Seas Sale basis since in both the cases the goods purchased do not cross the customs frontiers of India. In view of the above facts we would be required to refer to the provisions of IGST Act, 2017. First of all to confirm the nature of supply of present goods i.e. whether inter-state or intrastate we are required to refer to Chapter IV of the IGST ACT, 2017, which reads as under:- CHAFTER IV DETERMINATION OF NATURE OF SUPPLY Inter-State supply 7. (1) Subject to the provisions of section 10, supply of goods, where the location of the supplier and the place of supply are in,- (a) two different States; (b) two different Union territories; or (c) a State and a Union territory, shall be treated as a supply of goods in the course of inter-State trade or commerce. (2) Supply of goods imported into the territory of India, till they cross the customs frontiers of India shall be treated to be a supply of goods in the course of inter-State trade or commerce. Intra-State supply 8. (1) Subject to the provisions of section 10, supply of goods where the location of the supplier and the place of supply of goods are in the same State or same Union territory shall be treated as intra-State supply: Provided that the following supply of goods shall not be treated as intra-State supply, namely:- (i) supply of goods to or by a Special Economic Zone developer or a Special Economic Zone unit; (ii) goods imported into the territory of India till they cross the customs frontiers of India; or (iii) supplies made to a tourist referred to in section 15. We find that Section 7(2) of the IGST Act reads as under:- "Section 7(2) Supply of goods imported into the territory of India, till they cross the customs frontiers of India, shall be treated to be a supply of goods in the course of inter-State trade or commerce" Thus it is very clear that supply of goods imported into the territory of India till they cross the customs frontier shall be treated as supply of goods in the course of inter-state trade or commerce. From the transactions placed by the applicant before us there is no doubt that the goods of the applicant would be imported goods if they are brought from outside the country into India and it is clear that when the said goods are delivered/supplied from a place outside India to a place outside India, these goods have not crossed the customs frontiers of India Thus clearly the transaction in these goods are in the nature of inter-state supply as per Section 7(2) of the IGST Act. Now when we are clear that the subject transaction in question is in the nature of interstate sales, the liability to tax in respect of these goods would be as per Section 5 of the IGST Act which reads as under CHAPTER III LEVY AND COLLECTION OF TAX Levy and collection 5. (1) Subject to the provisions of sub-section (2), there shall be levied a tax called the integrated goods and services tax on all inter-state supplies of goods or services or both, except on the supply of alcoholic liquor for human consumption, on the value determined under section 15 of the Central Goods and Services Tax Act and at such rates, not exceeding forty per cent., as may be notified by the Government on the recommendations of the Council and collected in such manner as may be prescribed and shall be paid by the taxable person: provided that the integrated tax on goods imported into India shall be levied and collected in accordance with the provisions of section 3 of the Customs Tariff Act, 1975 on the value as determined under the said Act at the point when duties of customs are levied on the said goods under section 12 of the Customs Act, 1962. (2) ; (4) ; (5) ; We find that proviso to Section 5(1) of the IGST Act states that "Provided that the integrated tax on goods imported into India shall be levied and collected in accordance with the provisions of section 3 of the Customs Tariff Act, 1975 on the value as determined under the said Ad at the point when duties of customs are levied on the said goods under section 12 of the Customs Act, 1962 ". Thus from the above it is clear that integrated tax on goods imported into India is to be levied and collected in accordance with Section 3 of the Customs Tariff Act, 1975 and Section 12 of the Customs Act, 1962 and the same is to be levied and collected at the time of import into India. The goods are considered to be imported into India only after they clear the customs frontier after compliance of applicable procedures and payment of duty as applicable. Thus as per Section 7(2) of the IGST Act and proviso to Section 5(1) of the IGST Act it is very clear that in respect of import goods there is no levy and collection except in accordance with the provisions of Section 12 of the Customs Act, 1962 and Section 3 of the Customs Tariff Act, 1975. Section 12 of the Customs Act, 1962 provides that custom duties which includes integrated tax in respect of imported goods would be levied only at the time of import or export of goods. Thus in case of goods supplied on an out an out basis as is in the present case, there is no levy till the time of their customs clearance in compliance with Section 12 of the Customs Act and Section 3 of the Customs Tariff Act. In view of this the import goods sold from and to a non-taxable territory, though they are clearly in the nature of inter-state supply would come in the category of "exempt supply" as no duty is leviable on them except in accordance with proviso to Section 5(1) of the IGST Act. We find that in the definition of exempt supply as given in Section 2(47) of the CGST Act is as under:- Section 2(47) of the Central Goods and Services Tax (CGST) Act, 2017, "exempt supply" means supply of any goods or services or both which attracts nil rate of tax or which may be "wholly exempt from tax under section 11, or under section 6 of the Integrated Goods and Services Tax Act, and includes non-taxable supply". Further we find that Section 2(78) of the CGST Act defines non-taxable supply which is as under:-"As per Section 2(78) of the Central Goods and Services Tax (CGST) Act, 2017, "non-taxable suppIy" means a supply of goods or services or both which is not leviable to tax under this Act or under the Integrated Goods and Services Tax Act". Thus it is very clear that the goods sold in the subject transaction are non-taxable supply as no tax is leviable on them till the time of customs clearance in accordance with and compliance of Section 12 of the Customs Act, 1962 and Section 3 of the Customs Tariff act, 1975. We find that the above legal position is further reiterated and confirmed by Circular No. 3/1/2018 - IGST dated 25.05.2018 issued by the Central Board of Indirect Taxes and Customs, GST Policy Wing. 06. In view of the extensive deliberations as held hereinabove, we pass an order as follows : ORDER (Under section 98 of the Central Goods and Services Tax Act, 2017 and the Maharashtra Goods and Services Tax Act, 2017) NO.GST-ARA-53/2018-19/B-127 Mumbai, dt. 10/10/2018 For reasons as discussed in the body of the order, the questions are answered thus- Question 1:- Whether the applicant is liable to pay GST on the supply of goods located outside India to customers within India without physically bringing the goods to India? Answer :- Answered in the negative. Question 2:- Whether the out & out supplies in the facts of the present case will be considered as export supplies or exempted supplies for the purpose of the GST? Answer:- The supplies in the present case would be "non-taxable supply" as per Section 2(78) of the CGST Act, 2017 which means a supply of goods or services or both which is not leviable to tax under this Act or under the Integrated Goods and Services tax Act.