18 November 2018 Updates

NCLAT : In Export Import Bank of India vs. Resolution Professional, JEKPL Private Limited

Whether claim under section 15 of IBC Code means the claim matured or not? It was held that maturity of claim or default of claim or invocation of guarantee for claiming the amount has no nexus with filing of claim.

Read full case law at : https://dasgovernance.com/2018/11/16/nclat-in-export-import-bank-of-india-vs-resolution-professional-jekpl-private-limited/
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👉Finance Ministry is planning to come out with a Share Sale Offer of two recently Listed Insurance Companies -- GIC and New India Assurance. The Department of Investment and Public Asset Management (DIPAM) invited expression of interest (EoI) from merchant bankers and selling brokers for managing the offer for sale (OFS) of GIC and New India Assurance.

👉RBI Cancels Registration of 65 NBFCs through 2 separate notifications for unspecified reasons. Most of these NBFCs are in Delhi, while a few of them are in Uttar Pradesh and Haryana.

👉MCA constitutes a Committee for finalizing the Business Responsibility Reporting (BRR) Format for Listed and Unlisted Companies based on the BRR Framework of the updated NVGs. The Committee shall submit its report within six weeks from the date of its first meeting

👉Bank of Baroda, Vijaya Bank and Dena Bank have set 15 December as the deadline to agree a preliminary Share Swap Ratio for the combined entity. Once finalized, the share swap ratio for the PSU bank merger will be subject to the approvals of the respective boards, Reserve Bank of India and the Parliament

👉NCLAT Approves UltraTech’s Revised Bid of ₹7,950 crore for Binani Cement

👉SEBI asks Listed Companies to disclose their Risk Management Activities during the year, including their Commodity Hedging Positions, in a more transparent and uniform manner

👉Enforcement Directorate (ED) is investigating whether E-Commerce Companies Amazon and Flipkart have violated India’s Foreign Exchange & FDI Regulations.

👉India’s exports rose by 17.5% to $26.9 Billion in October, mainly due to the low base effect even as Trade Deficit widened to $17.1 Billion

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ICAI revises dates of Certificate Course on Cooperatives at Kolkata

Read more at: http://www.taxscan.in/icai-dates-certificate-course-cooperatives-kolkata/30696/
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GST Consultant behind Biggest Tax Fraud in Bangalore?

Read more at: http://www.taxscan.in/gst-consultant-tax-fraud-bangalore/30726/
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Appeal filed against Karnataka HC’s Decision upholding VAT Re-Assessment Order passed after GST rollout [Read Petition]

Read more at: http://www.taxscan.in/appeal-filed-karnataka-hcs-decision-upholding-vat-re-assessment-order-passed-gst-rollout/30698/
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GST paid under wrong head by mistake can be adjusted with another: HC

GST : The petitioner, a registered dealer, as a consignee and transporter, purchased goods from the consignor in Chennai. While those goods were coming in transit, they were detained and consignor paid the tax and penalty and it remitted the amount under the head 'SGST' instead of 'IGST'. So the authorities have refused to release the goods

• The High Court held that section 77 provides for the refund of the tax paid mistakenly under one head instead of another. But rule 4 of the GST Refund Rules speaks of adjustment. Where the amount of refund is completely adjusted against any outstanding demand under the Act, an order giving details of the adjustment is to be issued in Part A of Form GST RFD-07. the petitioner's counsel lays stress on this process of adjustment and asserts that the amount remitted under one head can be adjusted under another head, for the demand can be any amount under the Act thus, the concerned officials should allow the petitioner's request and get amount transferred from the head 'SGST' to 'IGST'.

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[2018] 99 taxmann.com 218 (Kerala)

HIGH COURT OF KERALA
Saji s.
v.
Commissioner, State GST Department Tax Tower, Thiruvananthapuram

DAMA SESHADRI NAIDU, J.
W.P. (C) NO. 35868 OF 2018

NOVEMBER  12, 2018

S. Santhosh Kumar, Smt. Anjana S. Santhosh and Smt. P. Lissy Jose, Advs. for the Petitioner. Dr. Thushara James for the Respondent.

JUDGMENT

The petitioner, a registered dealer, purchased certain goods from Chennai. He had them transported to Kerala. When the goods were in transit, the Assistant State Tax Officer (ASTO), for the reasons not germane here, detained the goods and issued the Ext.P3 notice, dated 30.09.2018.

2. Based on the demand in the Ext.P3 notice, the consignor paid the tax and penalty, as is evident from Ext.P4 payment receipt. But the remittance was made under the head 'SGST'.

3. The petitioner, who is the consignee and transporter, insists that the consignor paid the tax and penalty under that only based on the ASTO's directions. But the fact remains that the remittance must have been under the head 'IGST'. So the authorities have refused to release the goods. Aggrieved, the petitioner has filed this writ petition.

4. The petitioner's counsel has drawn my attention to Section 77 of the GST Act and also Rule 4(1) of the GST Refund Rules, 2017, especially the proviso appended to the Rule. To hammer home his contentions that even if the remittance were to treated as a mistake on the consignor's part, the statute empowers the authorities to transfer the deposit from one head to another: from SGST to IGST.

5. The Government Pleader, on the other hand, submits that the petitioner could as well pay the amount under 'IGST' and then claim a refund from the head 'SGST'. According to her, if the authorities have to go for an adjustment, it will take more than a couple of months.

6. Heard the learned counsel for the petitioner as also the Government Pleader.

7. I reckon the facts are not in dispute. The petitioner, as a consignee and transporter, purchased goods from the consignor in Chennai. While those goods were in transit, they were detained. Further not in dispute is the fact that the consignor paid the tax and penalty. Either on the ASTO's advice or on its own, it remitted the amount under the head 'SGST', instead of 'IGST'. In this context, we may refer to Section 77 of the GST Act. And it reads:

Section 77: Tax wrongfully collected and paid to Central Government or State Government:

(1) A registered person who has paid the Central tax and State tax or, as the case may be, the central tax and the Union territory tax on a transaction considered by him to be an intra-State supply, but which is subsequently held to be an inter-State supply, shall be refunded the amount of taxes so paid in such manner and subject to such conditions as may be prescribed.

(2) A registered person who has paid integrated tax on a transaction considered by him to be an inter-State supply, but which is subsequently held to be an intra-State supply, shall not be required to pay any interest on the amount of central tax and State tax or, as the case may be, the central tax and the Union territory tax payable."

8. We may as well examine Rule 4(1) of the GST Refund Rules, for much turns upon it. And it reads:

"4. Order sanctioning refund

(1) Where, upon examination of the application, the proper officer is satisfied that a refund under sub-section (5) of section 54 is due and payable to the applicant, he shall make an order in FORM GST RFD-06, sanctioning the amount of refund to which the applicant is entitled, mentioning therein the amount, if any, refunded to him on a provisional basis under sub-section (6) of section 54, amount adjusted against any outstanding demand under the Act or under any existing law and the balance amount refundable:
PROVIDED that in cases where the amount of refund is completely adjusted against any outstanding demand under the Act or under any existing law, an order giving details of the adjustment shall be issued in Part A of FORM GST RFD-07."

(italics supplied)

9. As seen, Section 77 provides for the refund of the tax paid mistakenly under one head instead of another. But Rule 4 speaks of adjustment. Where the amount of refund is completely adjusted against any outstanding demand under the Act, an order giving details of the adjustment is to be issued in Part A of FORM GST RFD-07. The petitioner's counsel lays stress on this process of adjustment and asserts that the amount remitted under one head can be adjusted under another head, for the demand can be any amount under the Act.

10. Under these circumstances, I find no difficulty for the respondent officials to allow the petitioner's request and get the amount transferred from the head 'SGST' to 'IGST'. It may, as the Government Pleader has contended, take some time, but it is inequitable for the authorities to let the petitioner suffer on that count.

11. So I hold that the 2nd respondent will release the goods forthwith along with the vehicle and, then, ensure that the tax and penalty already stood remitted under the 'SGST' is transferred to the head 'IGST'.

12. The writ petition is disposed of accordingly.
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# Central Bank of India Invites Application for Empanelment as Concurrent Auditor For detailed visit,
https://www.centralbankofindia.co.in/concurrentAuditorApp/welcome.aspx

# CBDT revises all Income Tax Return preparation utilities, schema & Tax Audit Report schema

# CBDT specifies jurisdictions under rule 114F of Income tax Rules on 05 Nov 2018 vide Notification No. 78/2018.

# No escape from sec. 276CC prosecution just because assessee had no tax payable: Delhi HC

# State tax authorities have begun blocking input tax credit claims of companies that have any VAT demand in the erstwhile tax regime pending against them.

# Customs Rate of Exchange of Foreign Currency Conversion wef 16.11.2018 notified vide Custom Notification No.93/2018 dt. 15/11/2018.

Upcoming Due Date
20-11-2018- GSTR-3B for the m/o October 2018

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CBDT, that frames policies for the Income Tax (I-T) Department, is "examining" a report that proposes to facilitate honest and consistent taxpayers in availing a variety of public services and tax-related works on priority.

GST paid in one head can be Adjusted with another : HC | Judgement by Kerala High Court dated 12th November 2018 in matter of Saji S. vs The Commissioner.

MCA and NFRA invites application from Chartered Accountants based in Delhi/NCR having 2 to 5 years of post-qualification experience as Consultant in MCA Offices/ RD Offices/ ROC Offices/ NFRA Offices in compliance, Investigation and inspection related areas of work at a remuneration Rs. 40000 per month by 22nd Nov 2018. https://cmib.icai.org//mcaform

Government will confront the RBI on its math to measure capital adequacy for state-run banks in the central bank’s board meeting on 19 November. The government estimates that the capital norms—much stricter than what are mandated by Basel III norms.

RERA: Delhi has finally got a full-time real estate regulator under RERA with Lt Governor Anil Baijal appointing retired IAS officer Vijay S Madan to the post.

Central Bank of India invites Online Applications for Concurrent Audit for the Year 2019 (Jan-Dec). Copy of Application form, along with other documents is to be submitted to respective zonal office by the selected firms only. Last Date for filing Online Applications: 26.11.2018

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👉Govt. will soon unveil a New Industrial Policy which may include a dedicated chapter on the importance of design. DIPP, in August last year, floated a Draft Industrial Policy with the aim to create jobs for the next 2 decades, promote Foreign Technology Transfer and attract USD 100 billion FDI annually. The proposed policy will completely revamp the Industrial Policy of 1991.

👉To encourage wider participation from Retail Investors, BSE will launch Incentive Scheme for Trading Members in Non- Competitive Bidding of G-sec (government security) and T-bills (treasury bills) with effect from November 19

👉RBI Governor Urjit Patel is scheduled to appear before  Parliamentary Standing Committee on Finance on November 27 to brief it on various issues, including the stand-off with the Govt, Status of the Economy and Demonetisation

👉RBI Board will meet on Monday to consider easing rules governing transfer of surplus funds to the government as well as liberalizing norms for weak banks to boost lending in the economy

👉Ujjivan Small Finance Bank is considering a Demerger or Issue of Bonus Shares of up to 60% to Shareholders of its holding company Ujjivan Financial Services to meet RBI norms for promoter shareholding.

👉Sundaram Mutual launched its new scheme, Sundaram Equity Savings Fund, an open-ended scheme that aims to invest in equity, arbitrage and debt. Sundaram Equity Savings NFO opened for subscription on November 16, and close on November 30. The scheme will re-open for subscription from December 14.

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Updates on Transfer of Securities in Demat Form:

Dear Member,

For the companies whose securities held in dematerialisation form, now NSDL has allowed transfer of securities wherein Maturity Date has expired in respect of Account Closure instruction, vide circular dated November 09, 2018 so as to remove difficulty and ambiguity over execution of transfer of such securities.

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Eway bill system(GST)
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What should I do if I don't have 'Transporter ID' but want to enter and generate 'Part-A slip'?

This is not possible as per rule 138(3). If the taxpayer is not having the details of 'Transporter ID but he still wants to enter and generate the 'Part-A Slip', then he has to compulsorily enter the 'Transporter ID' to generate the 'Part-A Slip' to enable the transporter to enter Part-B.

What should I do if I want to generate 'PART-A Slip' and want to transport the goods myself later?

If the user wants to generate the 'Part-A slip' and wants to transport the goods himself later, then he has to enter his GSTIN as the 'Transporter Id' and generate 'Part-A slip'. Once he gets the conveyance details he can update the Part-B by using 'Update Part-B/Vehicle' sub-option provided under E-Way Bill menu and start the movement of goods.

When to extend the validity of E Way Bill?

The Generator or Transporter can extend the validity of the e-Way Bill, if the consignment is not being reached the destination within the validity period due to following circumstances:

Delay due to vehicle breakdown.
Natural calamity
Law & order issue on the transit
Accident of conveyance
Transshipment delay etc.
The Generator or Transporter can extend the validity of e-Way Bill only between 8 hours before and 8 hours after the expiry time of the existing E Way Bill validity.

For example, if the validity of the E- Way Bill is till "midnight of 2nd Oct 2018, then the user can extend the same after 4 PM on 2nd Oct 2018 or before 8 AM on 3rd Oct 2018.

What should I do if PIN code is shown as invalid?

If the PIN code entered by the user is shown as invalid by the system, the user needs to recheck the PIN code again. Still if it is valid PIN Code as per user, then the generator can select the state manually from the dropdown list and proceed further to next stage.

What happens if the total invoice value does not match with the sum of assessable value, tax value and other values?

Ideally, the total invoice value should match with the sum of assessable value, tax value and other values. The system matches it even if there is a variation of Rs. 2.00 as this variation is allowed to take care rounding of decimal values.

If the total invoice value is greater than sum of total of taxable value, applicable taxes and charges, the system will alert the user through pop-up message and user can still proceed further for generating the e-Way Bill. But if the total invoice value is less than the sum total of taxable value, applicable taxes and charges, system will not allow the user to proceed further without correcting the invoice value.

Why message is sent if total invoice value is more than Rs. 10 crores?

It has been observed in the e-way bill system that some of the e-way bills have abnormal total invoice values, which could have been entered knowingly or unknowingly by the user while generating the e-way bill details.  If the entries are correct, he can continue with the e-way bill usage. If unknowingly, this mistake has happened, the user can take a corrective measure of cancelling that e-way bill and generating the other one.

In addition to the pop-up displayed at the time of entering the total invoice value, an additional pop-up will be displayed at the time of submission of the E-Way Bill Entry form. A SMS is also sent to the registered mobile number of the generator alerting him that invoice value of e-Way Bill is more than Rs. 10 crores has been generated.

Is it mandatory to select the rate of tax while entering the goods details?

No, it is not mandatory to select the tax rates or to enter the tax amounts while generating the e-way bill.

What if my GSTIN in e-Way Bill portal is cancelled but is active in GSTN common portal and I want to login in the e-Way Bill portal?

If the tax payer's GSTIN is cancelled in the e-Way Bill system but is active in the GST common portal and the tax payer wants to login and generate the e-Way Bill, he has to first go to the Taxpayer search option in the Home page of e-Way Bill portal. He has to then enter his GSTIN and system will show his corresponding GSTIN details existing in GST Common Portal. If the status of GSTIN is active, tax payer can login and generate the e-Way Bill.

I have amended GST registration details in GST Common Portal, but it is not being shown on the e-way bill system. What should I do?

In such case the tax payer has to login and use the 'My GSTIN from CP' sub-option provided under 'Update' option in the main menu.

When should I use Multi-Vehicle option?

When the tax payer or transporter wants to move the consignment of one e-Way Bill in multiple vehicles, after moving to transshipment place, he can use the 'Change to Multi Vehicle' sub-option provided under 'e-Way Bill' option in the main menu.
For example, let's say one e-Way Bill is generated to move the consignment from place A to place C. Here, the consignment moves from A to B via Rail or bigger vehicle. Now, it is not possible to move the consignment from B to C in the same mode of transportation due to unavailability of that mode or may be due to hilly region where big vehicles cannot be used. In such cases, the consignment can be moved in multiple smaller vehicles using the Multi-Vehicle option.

As an unregistered transporter, how can enter my branch details in the e-way bill portal?

If the transporter is having additional places of business in addition to the registered place of business, he can use the 'Update Additional Place' sub-option provided under 'Update' option in the main menu of e-way bill system to add/amend the additional places of business.

What should be done if goods movement is done in batches or lots?

As per the rule 55(5), one needs to issue the tax invoice for the complete quantity that is being moved in batches or lots. Then he has to prepare the delivery challan for each batch or lot and generate the corresponding eway bill for that batch or lot and move the consignment with delivery challan, copy of the invoice and ewaybill number. However, the last batch or lot should have the original invoice along with delivery challan and eway bill number.

On the ewaybill system, he needs to select SKD/CKD/Lots sub-supply type to generate the ewaybill for these kinds of batches and lots with delivery challan details.
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CBI arrests Three GST Officials in a Bribery Case

Read more at: http://www.taxscan.in/cbi-arrests-gst-bribery-case/30732/